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

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By Jorge Cirett

During the 28th week of the year (July 6th to July 12th, 2020), at least 31 press releases were announced by companies working in Mexico. Notably, six of those were exploration updates and six more related to financing. ON MEXICO ISSUES, a 12,000 years old ochre mining operation (now submerged) was discovered in the Yucatan peninsula. Avino Silver is the new victim of an illegal blockade. Mining in Mexico has extensive benefits to isolated communities, workers and the government. The Mining Fund rules have been changed, granting more political freedom on its assignment. Mines in the country prepare for production recovery in the second half of 2020.  ON EXPLORATION, in Sonora, Tarachi Gold is mapping and sampling on its Tarachi concessions, announced the finding of a porphyry copper system. In Sinaloa, Brigadier Gold is now exploring the Picachos property; Vizsla Resources released high-grade results on its Panuco property. In Durango, Canasil is now drilling the Nora project.  ON MINING, Argonaut Gold, Endeavour Silver, Great Panther, and Hecla released production results for the Q2, 2020. The figures presented reveal the extent of the Coronavirus emergency lockdown effects.  ON FINANCING, Aura Resources is aiming to raise up to $1 M. Prospero Silver consolidated its shares on a 10 to 1 basis. Mithril Resources intends to raise A$3.5 M. Solaris Resources is to trade in the TSX Venture Exchange. Advance Gold raised $301 K. Vizsla Resources announced a private placement for C$25 M. ON RESOURCES AND DEVELOPMENT, Mexican Gold commenced a 10,000 m drill program at its Las Minas project in Veracruz. GR Silver released more historic drilling results from Plomosas, Sinaloa. GoGold Resources released drilling results from eight more holes at Los Ricos Sur, Jalisco. Golden Minerals is drilling the Rodeo project in Durango. Magna Gold is producing gold from leaching heaps as it prepares to restart mining at the San Francisco mine in Sonora. ON DEALS AND CORPORATE ISSUES, Aura Resources is to change its name to Gold79 Mines. Brigadier Gold entered into a LOI with Minera Camargo to option 100% of the Picachos property in Sinaloa. First Mexican Gold changed its name to QcX Gold. Candente Gold informed the due diligence work on Magellan Acquisition assets in Nayarit has been conducted, results pending. Silver Tiger Metals is sampling historic workings on veins north of the El Tigre mine in Sonora. ON SOCIAL RESPONSIBILITY. Gold Resources, Torex Gold, Fortuna Silver, Fresnillo PLC and Peñoles informed on support activities and investments related to the Coronavirus emergency, community work supplies and/or about the “Day of the Tree”.

ON MEXICO ISSUES

  • Researchers discovered 12,000 years old submerged ochre mines in the Yucatan peninsula. Multiple artifacts and evidences of mining were found in this cave system that was above sea level up to 8,000 years ago.
  • Avino Silver & Gold Mines reports that members from the Mexican mining union have blocked the entrance to the Avino Mine in Durango. The group (that illegally blockades) includes the company’s unionized workers. As a result of the strike at the site, mining and mill processing operations have been halted.
  • Mining in Mexico supports 696 communities in 21 States, and often is the only option to take basic services and jobs to regions far away. The mining sector provides 2.6 percent of the GDP and accounts for 8.2 percent of the industrial output. Salaries at US$779/month (17,521 pesos/month) are 39 percent higher than the national average of $513/month (11,549 pesos/month). There are 379 thousand direct jobs and 2.3 M indirect jobs generated by the industry. Mining paid US$1.91 billion ($43,095 million pesos) in mining concession fees in 2019, and US$7,755 billion ($174,500 million pesos) in taxes in the 2016-2019 period.
  • The Mining Fund rules have been changed. The changes in the rules were published in the Diario Oficial de La Federación (Official Gazette), with the aim of speeding the process to deliver benefits to the communities, according to the document. The changes (which were opposed by the mining community because of the increased political control of the funds) include the elimination of necessary cost-benefit assessment of the projects deemed for social infrastructure, discarding also the obligation to establish coordination agreements in the request and delivery of said funds. The Mining Fund distributes part of the 7.0% of royalties and the 0.5% special tax on precious metal exploitation.
  • Mines in all the country prepare for a production recovery in the second half of 2020, as all companies have scrambled to operate under health safeguards brought by the Coronavirus pandemic.

ON EXPLORATION

  • Advance Gold Corp. provided an update on exploration of its Tabasqueña property in Zacatecas. The exploration that started trying to define epithermal vein mineralization has modified its target to a volcanogenic massive sulfide (VMS). A large chargeability anomaly more than 3 km long was defined in a geophysical survey, and subsequent drilling has intersected disseminated sulfides. Drilling of the disseminated sulfides has returned up to 39 ppb Au, 7 ppm Ag, 351 ppm Cu, 54 ppm Pb, 295 ppm Zn.
  • Brigadier Gold Ltd. entered into a binding letter of intent with Minera Camargo S.A. de C.V. for an option to acquire 100% interest in the Picachos property in Sinaloa. The area has more than 160 known historic underground workings, a recently identified porphyry copper prospect and drill permits in place. “The largest vein system trends northeasterly for seven kilometers along a major fault zone, and host the past-producing San Agustin underground mine”. Regional stream sediment results from a government survey shows several highly anomalous basins with up to 2.6 ppm Au, 299 ppm Cu, 13.9 ppm Mo, 639 ppm Pb and 1,716 ppm Zn.
  • Vizsla Resources Inc. released additional drilling results from the Napoleon vein corridor at the Panuco project in Sinaloa. Highlighted core length drill intercepts comprise 6.0 m @ 66.8 gpt Au, 1,808 gpt Ag (including 3.7 m @ 107.8 gpt Au, 2,889 gpt Ag); 1.78 m @ 2.49 gpt Au, 59 gpt Ag; 3.5 m @ 1.11 gpt Au, 57 gpt Ag; 10.65 m @ 1.34 gpt Au, 134 gpt Ag. The corridor “ hosts two main quartz veins that are separated by some 10 to 20 metres and appears to dip very steeply to sub-vertical. So far it has been mapped along strike for over 2,000 m. Between the two main veins are a series of smaller splay veins with variable orientations, that are related to dilation along the structure under strike slip movement …. Vizsla has an option to acquire 100% of the newly-consolidated 9,386.5 Ha Panuco district in southern Sinaloa, Mexico, near the city of Mazatlán. The option allows for the acquisition of over 75 km of total vein extent, a 500 tpd mill, 35 km of underground mines, tailings facilities, roads, power and permits”.
  • Tarachi Gold Corp. updated on field work activities on the concessions known as the Tarachi project, in Sonora. Detailed mapping and sampling on the La Dura and Virginia areas of the southern Jabali concession is near completion. Preliminary field work on the northern concessions of San Javier, Pretoria and Chivitas was also conducted, finding porphyry copper mineralization that is currently being defined. Environmental applications for drilling are ready for submission.
  • Canasil Resources Inc. started the drill program to test the Candy vein at its Nora project in Durango. Mineralization at Nora is hosted within structurally-controlled epithermal veins, of which the Candy vein is to be tested in a 500 m stretch.

ON MINING

  • Argonaut Gold Inc. announced second quarter production of 31,531 Oz AuEq from its Mexican operations. For the full-year 2020 the company expects to produce 45 K – 50 K Oz AuEq at El Castillo, 62 K – 68 K Oz AuEq at San Agustín (both in Durango) and 53 K – 55 K Oz AuEq at La Colorada (Sonora), for a total production of 160 K – 173 K Oz AuEq in Mexico.
  • Endeavour Silver Corp. presented Q2 2010 production figures, which were down 42% because of the Coronavirus pandemic lockdown. On the bright side, significant true width high-grade intercepts were made near current mine workings, like 1.5 m @ 24.3 gpt Au, 3,217 gpt Ag in Bolañitos, Guanajuato, and 10.0 m @3.25 gpt Au, 1,410 gpt Ag at Guanaceví, Durango.Endeavour Q2 2020 Production1
  • Great Panther Mining Ltd. released second quarter 2020 production results, with figures from its Mexican operations. At Topia, Durango, 7,781 tonnes were processed @ 352 gpt Ag, 0.87 gpt Au, recovering 92.5% Ag, 54.0% Au to produce 81.4 K Oz Ag, 118 Oz Au, 163 tonnes Pb, 223 tonnes Zn. At the Guanajuato mine complex, Guanajuato, 16,755 tonnes were processed @ 133 gpt Ag, 1.80 gpt Au, recovering 85.4% Ag, 84.7% Au, to produce 61 K Oz Ag, 819 Oz Au.
  • Hecla Mining Co. released preliminary production results for the second quarter 2020. At San Sebastian, in Durango, 2 M Oz Ag, 1,331 Oz Au were produced. Mining of oxide material is expected to be completed in the third quarter and milling in the fourth quarter of 2020. The viability of mining the sulfide Hugh Zone continues to be assessed. The mill operated at an average of 528 tpd.

ON FINANCING

  • Aura Resources Inc. initiated a non-brokered private placement aiming to raise between $500 K and $1 M (Taviche, Oaxaca).
  • Prospero Silver Corp. announced that the previously disclosed proposed consolidation of its shares, on a 10 to 1 basis, should have taken effect on July 7, 2020 (Pachuca East, Hidalgo).
  • Mithril Resources Ltd. received firm commitments to raise A$3.5 M through a share placement. Funds are to be used for the maiden drill program at its Coplaquin property in Durango.
  • Solaris Resources Inc. announced its common shares have been approved to list on the TSX Venture Exchange, and expects the trading is to be effective on July 13, 2020 (La Verde, Michoacan).
  • Advance Gold Corp. closed the previously announced private placement, for gross proceeds of $301 K (Tabasqueña, Zacatecas).
  • Vizsla Resources Corp. announced a bought deal private placement with Canaccord Genuity Corp. on behalf of an underwriting syndicate to raise C$25 M (Panuco, Sinaloa).

ON RESOURCES AND DEVELOPMENT

  • Mexican Gold Mining Corp. announced the commencement of a 10,000 m drill program to test all targets at Las Minas, Veracruz. A focus of the drilling is to expand and upgrade the current resource at El Dorado, follow up a previous 5.2 m pyrite rich quartz vein intersection @ 8.94 gpt Au at Cinco Señores, two high-grade vein trends at the Changarro zone, and the Las Minillas skarn occurrence. Other activities in preparation of the preliminary economic assessment (PEA) include the environmental baseline study, an enhanced metallurgy study and a Lidar digital terrain model.
  • GR Silver Mining Ltd. released historic drilling results from the San Juan area at its Plomosas property in Sinaloa. Highlighted true width (tw) intervals comprise 1.5 m @ 2.1 Gpt Au, 8 gpt Ag, 0.8% Pb, 4.1% Zn; 21.8 m @ 1.0 gpt Au, 7 gpt Ag, 1.5% Pb, 1.0% Zn; 2.4 m @ 15.1 gpt Au, 45 gpt Ag, 3.1% Pb, 0.9% Zn; 10.4 m @ 0.7 gpt Au, 7 gpt Ag, 1.6% Pb, 2.3% Zn; 25 m @ 0.3 gpt Au, 26 gpt Ag, 0.6% Pb, 0.8% Zn. These results extend mineralization 600 m on the San Juan system, to a total of 1 km in longitude.
  • GoGold Resources Inc. released the assay results from eight diamond drill holes at the Los Ricos South project in Jalisco. The San Juan, Rascadero, and East vein zones were tested, with highlighted results comprising 8.8 m @ 0.23 gpt Au, 44 gpt Ag at San Juan; 41.0 m @ 1.36 gpt Au, 168 gpt Ag (including 4.0 m @ 11.85 gpt Au, 1,295 gpt Ag); 18.4 m @ 5.18 gpt Au, 500 gpt Ag (including 3.2 m @ 26.2 gpt Au, 2,372 gpt Ag); 12.6 m @ 0.70 gpt Au, 111 gpt Ag at Rascadero; 3.0 m @ 0.33 gpt Au, 40 gpt Ag; 6.1 m @ 0.26 gpt Au, 36 gpt Ag at the East vein.
  • Golden Minerals Co. has commenced drilling at its Rodeo property in Durango. “The upcoming drill program will expand on the historic drilling campaigns that successfully tested multiple gold-quartz veins and breccias of the Rodeo low sulfidation vein system with encouraging results”. Highlighted historic drills results include 28.44 m @ 3.04 gpt Au, 5 gpt Ag; 25.4 m @ 3.79 gpt Au, 4 gpt Ag; 22.35 m @ 3.28 gpt Au, 17 gpt Ag; 28.45 m @ 4.87 m @ 10 gpt Ag31.2 m @ 5.99 gpt Au, 12 gpt Ag; 19.15 m @ 2.58 gpt Au, 5 gpt Ag; 19.2 m @ 1.93 gpt Au, 6 gpt Ag.
  • Magna Gold Corp. provided an operational update on its San Francisco mine in Sonora. “During the first two months of operations, the San Francisco Mine reported sales of US$8.53 million and operating costs of US$3.77 million with an operating margin of US$4.76 million. The Company produced 5,087 ounces of gold and sold 4,977 ounces of gold at an average cost of US$741 per ounce of gold produced and an average cost of $758 per ounce of gold sold. Gold production in May was 2,349 ounces and in June reached 2,738 ounces”. The company intends to complete the pre-feasibility study (PFS) by the end of July, when the processing of new fresh mineralized material is to start. Cash at the end of June at the San Francisco mine was US$8.4 M.

ON DEALS AND CORPORATE ISSUES

  • Aura Resources Inc. expects to change its name to Gold79 Mines Ltd. following the closing of the Territory Metals acquisition (Taviche, Oaxaca).
  • Brigadier Gold Ltd. entered into a binding letter of intent with Minera Camargo S.A. de C.V. for an option to acquire 100% interest in the Picachos property in Sinaloa. To acquire the 3,954 ha property Brigadier has to pay Minera Camargo US$275 K over five years and issue a total of 4 M shares over the same period, and 1 M shares when defining a 350 K Oz Au resource and US$725 K and 1 M shares when a feasibility report is completed, US$2 M upon commercial production commencement and a 2% NSR.
  • First Mexican Gold Corp. announced the change name to QcX Gold Corp. has been made effective on July 6, 2020 (Hilda, Sonora).
  • Candente Gold Corp. informed its due diligence team conducted the visits to the San Dieguito de Arriba processing plant and the historic El Dorado mine in Nayarit. The due diligence visit is part of the Memorandum of understanding (MOU) between Candente and Magellan Acquisition Corp. “The results of these tests along with recommendations for rehabilitation work and projections of ongoing operating expenses will provide the basis for a cost estimate to return the plant to operational status with feed material from the El Dorado Property.” (El Oro, Estado de México).
  • Silver Tiger Metals Inc. commenced underground channel sampling on the high-grade silver veins north of the historic El Tigre mine, in Sonora. “The areas of focus includes the Caleigh vein, the Canon Combination vein (unmined portion of the El Tigre vein), the Protectora vein and the Fundadora vein, all of which are located in the three kilometers of exposed veins at surface north of the historic El Tigre Mine”.

ON SOCIAL RESPONSIBILITY

  • Don David Gold Mines (Gold Resources) informed on the actions taken to work under the Coronavirus pandemic emergency at its operations in Oaxaca. The company supports the Mining Fund with US$8.34 M ($187.7 M pesos) and US$533 K ($12 M pesos) for community deals and infrastructure.
  • Minera Media Luna (Torex Gold) in coordination with local and State authorities released 300 K tilapia alevins (juvenile fish), with a shared company-authorities investment of $44.4 K ($1 M pesos). Also, $39.2 K ($881,764 pesos) were delivered to help the fishermen to modernize their engines and boats.
  • Minera Cuzcatan (Fortuna Silver) announced its plan to plant 13,500 seedlings of native species of the central valleys of Oaxaca in 15 ha of ground. The company has planted already 25,000 seedlings over the last three years on 25 ha.
  • Fresnillo PLC made a recount of the activities that the company has done regarding reforestation as years go by. The Bosque Sustentable Porvenir in Durango was established in 977 ha in association with the Instituto Nacional de Investigaciones Forestales, Agrícolas y Pecuarias. In Juanicipio, Zacatecas, 21,596 plants were relocated, and 14.3 ha were re-forested with 6,787 greenhouse seedlings. At La Herradura, in Sonora, 4,975 plants have been relocated in eight ha, and reforested 2 hectares more. Overall, 1.4 M seedlings have been produced since 2003 by the company.
  • Industrias Peñoles created in Torreon, Coahuila, the 18 ha Bosque del Centenario in 2001, which is now a green space in the city. The company’s greenhouse produces and donates to the community and its members 80,000 seedlings per year.

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:   Vapor whiffs on a cool morning in a hot spring field in Queretaro. Picture by Jorge Cirett.

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

 

Visible Gold in a high sulphidation epithermal system

By Miguel A Heredia

During the twenty seven week of the year (June 29th to July 5tt, 2020), at least 41 press releases were announced by companies working in Mexico, with eleven disclosing deals and corporate issues, nine announcing financial rounds, eight commenting on Mexican issues, six discussing on social issues, three informing on exploration results, two reporting on resources and developments, and two communicating production and financial results. ON MEXICO ISSUES, Miguel Angel Lucero Olivas, Senator of the Labour Party (PT), submitted for the consideration of the plenary, a proposal with Point of Agreement at the Supreme Court of Justice of the Nation in regards to the 34 constitutional controversies promoted by the Government of the state of Chihuahua and various municipalities of Chihuahua, Sonora, Zacatecas and San Luis Potosí, regarding the mining Fund. Gerardo Duran Alarcon, Director of the Chihuahua Mining Cluster estimated that the mining industry projects a drop between 17-20% in production and 10% in exports during the current year compared to 2019.  Francisco Quiroga Fernandez reported that authorities of the Undersecretariat of Mines of the Ministry of Economy (SE), have been carrying out verification tours to corroborate compliance with health protocols. Alfredo Tijerina Guajardo, Director of the Mining Development Trust Fund (Fideicomiso de Fomento Minero) (FIFOMI) announced that it is granting resources to support exploitation work of small and medium sized mining firms. Javier Villarreal Gamez, Undersecretary of Labor of the National Committee of the Confederation of Workers of Mexico (CTM) stated that the government must give security to investment in mining. Francisco Quiroga Fernandez, Undersecretary of Mining stated that the Mining Industry in Mexico has made a great effort to maintain jobs and wages during the pandemic. According to the National Institute of Statistics and Geography (INEGI), mining and metallurgical production fell 25.1% in April 2020 compared to April 2019.  ON EXPLORATION, In Sonora, Sonoro Metals announced plans for a 6,000m 2020 Phase 1 drill program at its Cerro Caliche project. In Chihuahua, Radius reported high-grade surface sampling results from its Amalia project. In Durango, Canasil announced the commencement of an initial core drill program to test Ag-Au targets at its Nora project.  ON MINING, Consolidated Zinc advised that it has returned to pre-COVID-19 production rates at its Plomosas mine and Aldama processing plant in Chihuahua. Gold Resource announced the milestones of a decade of production, generating over $1 billion in revenue and distributing over $114M in shareholder dividends from its Oaxaca Mining Unit in Mexico. ON FINANCING, Golden Goliath announced a private placement to raise gross proceeds of up to $2.5M (San Timoteo project, Chihuahua). Mag Silver entered into a sell agreement for gross proceeds of up to USD $50M (Juanicipio project, Zacatecas).  San Marco increased its previously announced non-brokered private placement to up to $3.5M (Chunibas project, Sonora). Oroco closed a non-brokered private placement for gross proceeds of $1.65M (Santo Tomas project, Sinaloa). Radius received from Pan American a payment of USD $150K in partial fulfillment of the Amalia JV agreement. Telson increased its previously announced non-brokered private placement to up to $1.4M (Tahuehueto project, Durango). VanGold concluded its warrant acceleration bonus program in which 7,159,500 warrants were exercised for gross proceeds of $1,715,950 (Pinguico project, Guanajuato). Excellon signed a binding term sheet for a fully subscribed financing of CAD $8M through the private placement of secured convertible debentures of the company. ON RESOURCES AND DEVELOPMENT, Prime Mining released surface and underground sampling results from its Los Reyes project in Sinaloa. Endeavour reported drill results from the El Curso property at its Guanacevi mine in Durango. ON DEALS AND CORPORATE ISSUES, Discovery Metals reported results from its annual general meeting of shareholders (Cordero project, Chihuahua). Magna Gold granted stock options to certain officers, directors and consultants of the company (San Francisco Mine, Sonora). One World Lithium provided a default status report to approve a temporary management cease trade order (Salar del Diablo project, Baja California Norte). Silver Dollar appointed Mr. Perry Durning and Mr. Frank (Bud) Hillemeyer as technical advisors to the Company (La Joya property, Durango). Silver One announced the initiation of trading on the OTCQX (Peñasco Quemado project, Sonora). Argonaut and Alio completed merger to create a North American, diversified precious metals producing company (El Castillo mine, Durango).  Brigadier announced the appointment of Oscar Mendoza as special advisor Cuatro Ciénegas project, Coahuila). Canuc reported results from its annual general meeting of shareholders and appointed a new member to its board of directors (San Javier project, Sonora). Mammoth reminded shareholders of the granting of a Management Cease Trade Order (Tenoriba project, Chihuahua).  Sierra Metals reported results from its annual general meeting of shareholders (Cusi mine, Chihuahua). Defiance confirmed that the Company’s management is unaware of any material change in the Company’s operations that would account for the recent increase in market activity (San Acacio project, Zacatecas). ON SOCIAL RESPONSIBILITY, Agnico Eagle launched its policy “Stay Safe Stay Watchful”, as countries where the company is operating are now cautiously emerging from the global blockade. Minera Penmont (Fresnillo plc) meets extraction regulations with new technology and innovative tools (La Herradura mine, Sonora). Minera Peña Colorada delivered the Medical Care Unit to the General Hospital of Manzanillo in Colima state. The Grupo Mexico Foundation donated over 45,000 medical supplies to the Zacatecas Health Secretariat, and three pressure ventilators to the regional hospital of Nueva Rosita, Coahuila. Minera san Julian (Fresnillo plc), delivered additional 4,000 face mask to the Municipal Council of Guadalupe y Calvo, Chihuahua.

 ON MEXICO ISSUES

  • Miguel Angel Lucero Olivas, Senator of the Labour Party (PT), submitted for the consideration of the plenary, a proposal with Point of Agreement at the Supreme Court of Justice of the Nation in regards to the 34 constitutional controversies promoted by the Government of the state of Chihuahua and various municipalities of Chihuahua, Sonora, Zacatecas and San Luis Potosí, regarding the Mining Fund. The formal name of the well-known “Mining Fund” is the Fund for the Development of Mining Production Areas and is administered through of a financial instrument established by the 2019 Income Law, article 25 section IX. The total amount collected is MXP $4,320M.  The distribution will be made as follows:  80% (Fund for the Development of Mining Production Zones), that is to say approximately MXP $3,500M; 10% for the Ministry of the Economy (SE) and 10% for the Federal Government. (Note:  The SE has given its 10% to the Federal Government since last year.) The Ministry of Economy will distribute the 2018 Mining Fund resource directly or in coordination through an agreement with states, municipalities and other dependencies, and according to the guidelines.
  • Gerardo Duran Alarcon, Director of the Chihuahua Mining Cluster estimated that the mining industry projects a drop between 17-20% in production and around 10% in exports during the current year compared to 2019. He noted that expectations are given by the cessation of activities that the industry had due to the contingency, as well as by the exercise of a fiscal framework that does not favor investment, as well as for political, economic and insecurity issues. The fiscal framework is not new, since it arose from the 2013 tax reform in which it was decided to cancel the deductibility of investment in exploration. Virtually since then, investment started to slow down and this year it has practically stopped. The director said that exploration work involves a high amount of investment in dollars and if it does not obtain the expected results, it practically loses one hundred percent and that makes it unattractive to bet on the search for more deposits.
  • Francisco Quiroga Fernandez reported that authorities of the Undersecretariat of Mines of the Ministry of Economy (SE), have been carrying out verification tours in mining companies to corroborate compliance with health protocols in order to ensure that the restart of economic activity does not undermine the effort made by the authorities of different levels of government and society, as a whole, to face the challenge of COVID-19. He stated that verification tours have allowed corroborating that many companies are showing a great sense of co-responsibility. They are working together with health authorities, municipal presidents and workers’ representatives to reinforce the capacity for medical attention.
  • Alfredo Tijerina Guajardo, Director of the Mining Development Trust Fund (Fideicomiso de Fomento Minero) (FIFOMI) announced that it is granting resources to support exploitation work of small and medium sized mining firms. FIFOMI is focused mainly on providing low-interest rate loans to companies in the sector, basically those considered small, with annual turnover of up to MXP $200M, and medians with income of up to MXP $900M. He added that in mining there are three major phases to which financing is provided: exploration, development and exploitation, and that FIFOMI concentrates on the latter, since it is considered that the first two phases require so-called risk capital.
  • Javier Villarreal Gamez, Undersecretary of Labor of the National Committee of the Confederation of Workers of Mexico (CTM) stated that the government must give security to investment in mining. It is necessary that the Federal Government encourages, promotes and gives security to private investment in mining, through reforms, especially in fiscal matters, if necessary, because it would generate certainty, contrary to the prevailing situation at the moment. He stressed that mining is essential for national development, since it represents 3 percent of the country’s Gross Domestic Product and constitutes 8% of industrial GDP. He considered it difficult to forecast the pace of mining recovery in the remainder of 2020 and the prospects for 2021, but assured that the bet of all the sectors involved should be in favor of this industry remaining active. Noting that mining generates 370 thousand direct jobs and 2.3 million indirect jobs, which generates a production chain of 2.6 million total jobs, he commented that this sector is the source of raw materials for practically all industries in the country, from that of medications up to aerospace, just to name a few. He stressed that the jobs generated by mining are well paid, between 80 and 100% higher than in the rest of the industries, with contributions of profits that also far exceed the average of companies in other areas. Javier Villarreal, also general Secretary of the National Union of Workers of the Mining-Metallurgical Industry of the CTM, explained that the authorities must take actions to keep that sector growing.
  • Francisco Quiroga Fernandez, Undersecretary of Mining stated that, one month after the Mining Industry in Mexico has reactivated its activities, the mining sector has made a great effort to stay afloat in the face of adversity. He highlighted the effort that the sector has made to maintain the jobs and full wages of its workers. He also pointed out that only 75% of the workers have returned to the mines, while 25% more remain working from their homes, under the strict implementation of safe work and coordinated work with local authorities.
  • According to the National Institute of Statistics and Geography (INEGI), mining and metallurgical production fell 25.1% in April 2020 compared to April 2019, this caused by the suspension of operations in the face of the COVID-19 pandemic. This index that considers the activities of extraction, processing, smelting and refining of metallic and non-metallic minerals, decreased by 24.4% based on seasonally adjusted figures in the fourth month of 2020 compared to March. The INEGI reported that the production of non-coking coal decreased by 85.4% in an annual variation, while the production of lead decreased 53.3%, zinc 49%, gold 40.9%, coke 36.1%, pellets of iron 22.5%, silver 21.1% silver, fluorite 14.4%, gypsum and copper 10.8%. In contrast, sulfur was increased by 1.2%.

ON EXPLORATION

  • Sonoro Metals Corp., announced plans for a 6,000m 2020 Phase 1 drill program to test 20 targets at its Cerro Caliche project in Sonora. This program is part of the 50,000m of core and RC drilling announced previously by the company. The aim of the Phase 1 drill program is to test previously drilled, shallow, Au-bearing epithermal mineralization for the presence of deeper high-grade Au mineralization at elevations of 200-300m below surface. The Phase 1 drilling is expected to take up to five months.
  • Radius Gold Inc., reported high grade surface sampling results from its Amalia project in Chihuahua. Surface sampling from the untested California target have returned grades of up to 1.5 m @ 27 g/t Au. Radius has resumed the processing of the permits for stage 4 drilling at its Amalia project and expects to obtain them within the next six weeks.
  • Canasil Resources Inc., announced the commencement of an initial core drill program to test Ag-Au targets at its Nora project, which consists of structurally-controlled epithermal veins. The program will be focused on the undrilled Candy vein and Canasil plans to drill four sections, spaced over a strike length of 500m, all below high-grade Ag-Au samples from vein outcrops and rock dumps from earlier underground workings.

ON MINING

  • Consolidated Zinc Limited, advised that it has returned to pre-COVID-19 production rates at its Plomosas mine and Aldama processing plant in Chihuahua. Based on June production figures, the company anticipated the third quarter will be a better operational quarter than it has seen this year.
  • Gold Resource Corporation, the milestones of a decade of production, generating over $1 billion in revenue and distributing over $114 million in shareholder dividends from its Oaxaca Mining Unit in Mexico. “The Company announced commercial production from its Oaxaca Mining Unit (OMU) on July 1, 2010 estimating the Arista Mine’s life of mine at a minimum of nine years while only having three to four years of internally delineated resource at that time. Today, July 1, 2020, marks the milestone of one full decade of production from the OMU exceeding the Company’s then nine-year 2010 mine life estimate. With approximately four years of current proven and probable reserves, there is a strong possibility of a second decade of production ahead for the OMU”.

ON FINANCING

  • Golden Goliath Resources Ltd., announced a private placement to raise gross proceeds of up to $2.5M. The financing will consists of a combination of flow-through units priced at $0.20 with a half warrant priced at $0.30 and non flow-through units priced at $0.15 with a full warrant priced at $0.30 (San Timoteo project, Chihuahua).
  • Mag Silver Corp., entered into a sales agreement to raise gross proceeds of up to USD $50M.The sale of common shares will be made through “at the market distributions”. The company plans to use the net proceeds to fund the completion of construction of its Juanicipio project in Zacatecas, and for working capital and general corporate purposes.
  • San Marco Resources Inc., increased its previously announced flow-through non-brokered private placement from $2M to up to $3.5M, due to strong investor demand (Chunibas project, Sonora).
  • Oroco Resource Corporation, closed a non-brokered private placement for gross proceeds of $1.65M. Net proceeds will be used to advance its Santo Tomas project in Sinaloa, including site preparation for an exploration drill program, the acquisition of surface rights and permits, a 3D IP geophysical survey, and general corporate purposes.
  • Radius Gold Inc., received from Pan American Silver Corp., a payment of USD $150K in partial fulfillment of the Amalia project JV agreement.
  • Telson Mining Corporation, increased its previously announced non-brokered private placement and now intends to rise $1.4M. Net proceeds will be used to advance the construction of its Tahuehueto mine in Durango and for general working capital.
  • VanGold Mining Corp., concluded its warrant acceleration bonus program announced May 27, 2020 and June 12, 2020 for share purchase warrants ranted in connection with the Company’s 2019 non-brokered private placement financing. In total, 17,159,500 warrants were exercised under the bonus program for 17,159,500 common shares at a price of $0.10 per share for gross proceeds of $1,715,950 (Pinguico project, Guanajuato).
  • Excellon Resources Inc., signed a binding term sheet for a fully subscribed financing of CAD $8M through the private placement of secured convertible debentures of the company. The proceeds will be used to repay the USD $6M bridge loan with Sprott Private Resource Lending II (La Platosa mine, Durango).

ON RESOURCES AND DEVELOPMENT

  • Prime Mining Corp., released surface and underground sampling results from the Tahonitas deposit within its Los Reyes property in Sinaloa. Significant results were obtained at TR-1 with 3.24 g/t Au and 46 g/t Ag over 10.5m, including 8.37 g/t Au and 55 g/t Ag over 3m; TR-2 with 0.72 g/t Au and 18 g/t Ag over 30m, including 1.86 g/t Au and 18 g/t Ag over 7.5M; and TR-3b with 1.78 g/t Au and 71 g/t Ag over 63m, including 11.68 g/t Au and 334 g/t Ag over 4.5m and 5.7 g/t Au and 292 g/t Ag over 6m. The current Tahonitas deposit is modeled as part of a conceptual open pit that includes the Zapote South deposit.
  • Endeavour Silver Corp., reported drill results from the El Curso property at its Guanacevi mine in Durango. A total of 18 drill holes were collared on the Santa Cruz vein, of which 12 hit high grades over mineable widths. Drilling highlights include the following intersections: hole UCM-27 with 3.25 g/t Au and 1,085 g/t Ag (1,410 g/t AgEq) over a true width (TW) of 10m, including 14.88 g/t Au and 5,500 g/t Ag (6,988 g/t AgEq) over a TW of 0.5m; hole UCM-26 with 1.87 g/t Au and 762 g/t Ag (948 g/t AgEq) over a TW of 5.1m, including 3.5 g/t Au and 2,026 g/t Ag (2,376 g/t AgEq) over a TW of 0.6m; and UCM-25 with 1.43 g/t Au and 986 g/t Ag (1,129 g/t AgEq) over a TW of 4.8m, including 7.3 g/t Au and 7,451 g/t Ag (8,181 g/t AgEq) over a TW of 0.5m.

ON DEALS AND CORPORATE ISSUES

  • Discovery Metals Corp., reported results from its annual general meeting of shareholders (Cordero project, Chihuahua).
  • Magna Gold Corp., granted a total of 2, 250,000 incentive stock options to purchase common shares of the company to certain officers, directors and consultants of the company. Such options are exercisable at a price of $0.98 for a period of five years (San Francisco mine, Sonora).
  • One World Lithium Inc., provided a default status report to approve a temporary management cease trade order on the basis that it would be unable to file its annual consolidated financial statements, accompanying management’s discussion and analysis and related CEO and CFO certifications, for the year ended December 31, 2019 (Salar del Diablo project, Baja California Norte).
  • Silver Dollar Resources Inc., appointed Mr. Perry Durning and Mr. Frank (Bud) Hillemeyer as technical advisors to the Company. Perry and Bud formed La Cuesta International Inc. in 1993 and are recognized for their outstanding record of grassroots discoveries, particularly the San Sebastian, San Agustin, and Pitarrilla deposits in Durango, Camino Rojo in Zacatecas, and Los Gatos in Chihuahua.
  • Silver One Resources Inc., announced the initiation of trading on the OTCQX. The OTCQX Best Market provides value and convenience to U.S. investors, brokers and institutions seeking to trade Silver One shares under the ticker symbol SLVRF (Peñasco Quemado project, Sonora).
  • Argonaut Gold Inc., and Alio Gold Inc., completed the business combination to create a North American, diversified precious metals producing company with a strong portfolio of growth assets. Argonaut common shares will continue trading on the TSX, and Alio shares are expected to cease trading on the NYSE American on July 1, 2020 and be de-listed from the TSX after close of business on July 3, 2020 (El Castillo mine, Durango).
  • Brigadier Gold Limited, announced the appointment of Oscar Mendoza as special advisor to review and generate opportunities in Mexico that align with Brigadier’s plan for growth. (Cuatro Ciénegas project, Coahuila).
  • Canuc Resources Corporation, reported results from its annual general meeting of shareholders and appointed a new member of its board of directors (San Javier project, Sonora).
  • Mammoth Resources Inc., reminded shareholders of the granting of a Management Cease Trade Order (Tenoriba project, Chihuahua). “The company found it prudent to employ this Exemption, Instrument 51-502 which enables Mammoth excemptive relief to delay the filing of its audited annual financial statements, the accompanying management’s discussion and analysis, as well as the associated CEO and CFO certifications for the year ended January 31, 2019, due June 1, 2020 and that these filings are expected to be completed within the 45 day period, July 15, 2020”.
  • Sierra Metals Inc., reported results from its annual general meeting of shareholders (Cusi mine, Chihuahua).
  • Defiance Silver Corp., confirmed that the Company’s management is unaware of any material change in the Company’s operations that would account for the recent increase in market activity (San Acacio project, Zacatecas).

ON SOCIAL RESPONSIBILITY

  • Agnico Eagle Mines Limited, launched its policy “Stay Safe Stay Watchful”, as countries where the company operates are cautiously emerging from the global blockade. The company is helping communities and employees to stay safe as they embrace the “new normal.” In order to minimize the spread of this virus. At its Pinos Altos and la India mines in Sonora, Mexico, the decision was made to have the mine’s doctors work at the health centers in the surrounding communities, so they can examine local patients and make home visits to ensure that vulnerable members of the community receive adequate medical care.
  • Minera Penmont (Fresnillo plc), announced that it meets extraction regulations with new technology and innovative tools that allow the protection of the environment, the safety of employees in production plants and the protection of communities and their environment. Minera Penmont has the cyanide management permit from its creation and the origin of its mining activity, which was granted by the Ministry of Environment and Natural Resources (SEMARNAT). In addition, it has the authorization of COFEPRIS and all the permits requested by the General Law of Ecological Balance and Protection of the Environment (LGEEPA). In addition to the previous legislation, Fresnillo plc joined, since 2011, the Cyanide Code, an international voluntary program developed by the International Institute of Cyanide Management (ICMI). This Code was established in 2002 and aims to reduce the potential exposure of workers and communities to harmful concentrations of cyanide; In addition, ICMI conducts audits of processes to recertify Minera Penmont’s credentials every three years; meanwhile, the company exclusively purchases cyanide from manufacturers certified by the Institute. Based on this program, the company works under the following criteria: protect communities and the environment during cyanide transport; protect workers’ health and safety from exposure by this substance and train workers and emergency response personnel in its handling.
  • Consorcio Minero Peña Colorada S.A. de C.V., delivered the Medical Care Unit to the General Hospital of Manzanillo in Colima state. With an investment of MXP $ 4.6M the company carried out the transformation of this 1,200 m2 space, which consisted of conditioning and equipping 3 completely separate and independent medical care modules: general and specialty medical consultation, hospitalization area for men and women, and a dedicated space for major emergencies and observation. This facility has the capacity to serve up to 108 patients a day, originating from Manzanillo, Minatitlán and neighboring municipalities of Jalisco.
  • The Grupo Mexico Foundation, donated approximately 45,000 medical supplies to the Zacatecas Health Secretariat, and three pressure ventilators to the regional hospital of Nueva Rosita, Coahuila. The material received in Zacatecas was: 4,500 masks and 4,337 protective glasses, 4,000 aprons, 6,400 mouth guards, 32 goggles and 25,200 monitor electrodes. Also, nitrile gloves, antiseptic soap and intubation cannulas. All this will help the health authorities to face the current health contingency. In Coahuila, three pressure ventilators were delivered for the care of patients with COVID-19, although the medical director of the hospital pointed out that at the moment there has been no need to use these mechanical ventilators.
  • Minera San Julian (Fresnillo plc), delivered a third package with additional 4,000 face mask to the Municipal Council of Guadalupe y Calvo, Chihuahua, which are made by a sewing workshop in the town of Yerbitas. This personal protective equipment will be distributed to the population of the different towns of the municipality, with the objective of carrying out preventive work in the face of the COVID-19 pandemic.

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, visible gold (VG) in a high sulphidation epithermal system in a prospect in Sonora, Mexico.  Photo by Miguel A Heredia.

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

Ptygmatic folds

By Miguel A Heredia

During the twenty five week of the year (June 15th to June 21tt, 2020), at least 44 press releases were announced by companies working in Mexico, with twelve disclosing deals and corporate issues, ten announcing financial rounds, six commenting on Mexican issues, five informing on exploration results, five discussing on social issues, four reporting on resources and developments, and two communicating production and financial results, ON MEXICO ISSUES, Minera Fresnillo published a press release regarding the events of last Friday, June 12, when a group of people committed excesses in the vicinity of the Fresnillo mine in Zacatecas. Fresnillo plc announced recruitment of 130 mine workers who labored at the Francisco I Madero mine in Zacatecas.  Bacanora Lithium announced that it is set to start production at its Sonora project in Mexico in 2022, despite COVID-19 interruptions. Mexico has some of the largest undeveloped Ag deposits that have been slowed by economic weakness and price fluctuations. Senator Miguel Angel Lucero Olivas, president of the Mining and Regional Development commission, will present a point of agreement to maintain the Undersecretariat of Mining and, if possible, raise it to the Secretariat level. ON EXPLORATION, In Sonora, Magna Gold announced plans to conduct initial drill programs at its La Pima, San Judas and Veta Tierra projects. In Sinaloa, Vizsla added a second rig at its Panuco project, and Kootenay released drill results from the first core hole collared at its Copalito project. In Durango, Mithril provided an update on its Copalquin project.  In Jalisco, GoGold released drill results from nine holes collared at its Los Ricos South project. ON MINING, Magna Gold provided an update and reported production and financial results for May 2020 from its San Francisco mine in Sonora. Santacruz reported consolidated Q4 and full year 2019 production and financial results from their Mexican mine operations.  ON FINANCING, Aztec Minerals arranged a non-brokered private placement for gross proceeds of CAD $3M (Cervantes project, Sonora). Candelaria Mining entered in a medium term loan facility for USD $9M (Pinos project, Zacatecas).  Mammoth closed a non-brokered private placement for net proceeds of $141,250, which due to demand was increased to $167,475 (Tenoriba project, Chihuahua). Megastar closed a non-brokered private placement for gross proceeds of $ 926,800 (Rama de Oro, Oaxaca). Telson formed a strategic funding alliance with Accendo Banco for USD $12M (Tahuehueto project, Durango). First Mexican closed the first tranche of its previously announced brokered private placement for gross proceeds of $1,235,229.73 (Guadalupe project, Sonora). GR Silver completed a bought deal private placement for gross proceeds of $9,153,000 (Plomosas project, Sinaloa). Magna Gold announced a non-brokered private placement for gross proceeds of up to $7,000,750 (San Francisco mine, Sonora).  Mexus announced that it has paid $178,855.49 to satisfy an outstanding debt obligation (Santa Elena mine, Sonora). One World Lithium approved a temporary management cease trade order which, if granted, will prohibit trading in securities of the Company by certain insiders of the Company, whether direct or indirect (Salar del Diablo project, Baja California Norte). ON RESOURCES AND DEVELOPMENT, Discovery Metals extended higher grade and expanded the drill program at its Cordero project in Chihuahua. Canuc announced that it signed a Memorandum of Understanding (MoU) with M3SH Technologies Inc., to distribute and sell technological solutions (San Javier project, Sonora). Magna Gold provided plans for its San Francisco mine in Sonora, and reported that a mine design has been completed and plans to advance a pilot test program for its Mercedes project in Sonora.  Sierra Metals released drill results and confirmed the discovery of a new high grade Ag area at its Cusi mine in Chihuahua. ON DEALS AND CORPORATE ISSUES, Bacanora Lithium received notification of the off-market transfer of a portion of the shares beneficially owned by Mark Hohnen (Sonora Lithium project, Sonora).  Fortuna Silver reported results from its annual general meeting of shareholders (San Jose mine, Oaxaca). Oroco announced that its shares have been approved to trade on the OTCQB Venture market in USA (Santo Tomas project, Sinaloa). Prime Mining announced key management changes and amended its Los Reyes option agreement in Sinaloa. Silver Dollar signed a letter of intent (LOI) to acquire La Joya project, Durango from First Majestic.  Newmont was ranked top miner in the 100 best corporate citizens list for 2020 (Peñasquito mine, Zacatecas). Torex announced management changes and results from its annual general meeting of shareholders (El Limón-Guajes mine complex, Guerrero). Tarachi Gold retained Digital 257 Technologies Inc., for digital media and capital market communication services and granted stock options to directors, officers and consultants of the compnay (Juliana project, Sonora).  SilverCrest presented results from its annual general meeting of shareholders (Las Chispas project, Sonora). Silver Spruce granted 6.75M stock options to directors and consultants of the company (Pino de Plata project, Chihuahua). ON SOCIAL RESPONSIBILITY, Mining companies operating in Mexico have shown their support in different ways to face the COVID-19 pandemic. The Grupo Mexico Foundation donated preventive kits to the Fire Department, Red Cross and Civil Protection of the Sonoran capital, and delivered health and safety kits to the Taxco, Guerrero health sector.  Minera Media Luna (Torex Gold), delivered preventive material for the COVID-19 health contingency in the municipalities of Cocula and Valerio Trujano, in Guerrero State. Minera Penmont (Fresnillo plc), strengthened security protocols to guarantee safe and contagion-free workspaces for its collaborators. Mina San Dimas of First Majestic received medical equipment to face contingency for COVID-19.

 ON MEXICO ISSUES

  • Minera Fresnillo (Fresnillo plc), published a press release regarding the events of last Friday, June 12, when a group of people committed excesses in the vicinity of the Fresnillo mine in Zacatecas, in which there were arrests of armed persons. The company initiated legal proceedings before the competent authority. Minera Fresnillo reiterated its respect for union autonomy, and the application of the Mexican rule of law, in particular, current labor legislation. The company also pointed out that there is a disinformation campaign promoted by a group of people that has not been conducted by the institutional media established by the law.
  • Fresnillo plc, announced recruitment of 130 mine workers who labored at the Francisco I Madero mine in Zacatecas. The Francisco I Madero mine was indefinitely suspended a month ago but Fresnillo called them to present their documentation and participate in the contracting process to join the Fresnillo and Saucito mines in Fresnillo, Zacatecas. With this measure, the Mexican mining company will increase its base of collaborators, which will have a positive impact in the region, as 130 new direct and 520 indirect jobs will be generated.
  • Bacanora Lithium plc, announced that it is set to start production at its Sonora project in Mexico in 2022, despite COVID-19 interruptions. The company could benefit from the momentum of a “green recovery” after the pandemic that could spur growth in the electric vehicle market, according to the analyst. The USD $420M project, to be carried out through a 22.5: 77.5% JV with strategic partner Ganfeng Lithium, will be the first to produce significant volumes of lithium in Mexico. Production is estimated to approximate 17,500tonnes per year of lithium carbonate, doubling to 35,000 tonnes starting in 2026 following a USD $380M expansion.
  • Mexico has some of the largest undeveloped Ag deposits that have been slowed by economic weakness and price fluctuations. Four deposits with reserves totaling 178 B Oz Ag remain in the list: Cordero deposit in Chihuahua and owned by Discovery Metals, has resources for 595 M Oz Ag; Pitarrila in Durango, owned by SSR Mining with 552M Oz Ag, Metates in Durango, owned by Chesapeake with 526M Oz Ag; and La Preciosa in Durango owned by Coeur with 105M Oz Ag.
  • Senator Miguel Angel Lucero Olivas, president of the Mining and Regional Development commission, will present a point of agreement to maintain the Undersecretariat of Mining and, if possible, raise it to the Secretariat level. Mexico can gain strength thanks to mining and this is a key point of support for the economic reactivation of the country, therefore it is necessary to have a government agency that can lead and represent a strategic sector such as mining.
  • Undersecretary of Mining, Francisco Quiroga Fernández, assured that the six mines he visited in Sonora are free of COVID-19. He also verified that strict protocols are being applied. So far, there have been no confirmed or probable cases of COVID-19 in any of the resumed Sonoran mines. The Undersecretariat of Mining, previously had already visited other mines in the states of Durango, Chihuahua, Zacatecas, and Coahuila, pointed out that there have been no outbreaks or contagions of COVID-19.

ON EXPLORATION

  • Magna Gold Corp., announced plans to conduct initial drill programs at its La Pima, San Judas and Veta Tierra projects in Sonora. At La Pima, a highly prospective high-grade underground Ag project located 30km NE of the San Francisco open pit, Magna plans to commence a 2,000m core drill program once it completes the permitting process and surface ownership negotiations. At San Judas, located 50 km W of San Francisco open pit, it wants to initiate a first phase of RC drilling in Q4,2020, which will comprises 3,000m to test three of the seven priority targets identified to date. At Veta Tierra, located 5.5 Km NW of the San Francisco open pit, the company wants to re-initiate activities to complete an unfinished drill program that was commenced by Timmins Gold in 2013, which will include 2,000 of RC to test the lateral continuity of the Au mineralization indicated by previous drilling along a 300m trend of an exposed diorite intrusion.
  • Vizsla Resources Corp., added a second rig at its Panuco project in Sinaloa. The company recently resumed its 14,500m drilling program focused on testing over 20 initial drill targets on its unexplored Panuco mining district. To date, only approximately 4,500m have been drilled.
  • Kootenay Silver Inc., released drill results from the first core hole collared at its Copalito project in Sinaloa. The first hole (BDH-20-001) reached a depth of 105.2m and tested the eastern edge of the Cinco Señores vein, returning 106 g/t Ag over 22m, including 1.09 g/t Au and 244 g/t Ag over 3m and including 286 g/t Ag over 1m, and other interval of 0.25 g/t Au and 250 g/t Ag over 5m, including 0.1 g/t Au and 360 g/t Ag over 1m. The 3,500m drill program will continue with the next holes planned to test the Cinco Señores vein where chip sampling returned encouraging Au and Ag values such as 2.9 g/t Au and 426 g/t Ag over 3.2m; 0.24 g/t Au and 401 g/t Ag over 5.3m; 1,155 g/t Ag over 1m; 1.8 g/t Au and 396 g/t Ag over 1m; and 534 g/t Ag over 1m. Five additional principal veins of epithermal affinity remain to be drill tested.
  • Mithril Resources Limited, provided an update on the exploration activities at its Copalquin project in Durango. “A permit for the drill program was issued in 2019 and is being fast tracked and expanded to include additional drill target areas.  All drill pads have been constructed for the initial drill program with clear access tracks established.  Drilling support infrastructure is progressing as planned, ahead of the arrival of the drill rig in the coming weeks”. Drilling will begin at La Soledad target, where over 600m of vein have been mapped at surface with an additional 400m of vein splaying off towards the El Indio mine workings to the east. Drilling will continue at Los Pinos and Los Reyes targets, each with approximately 400m of vein mapped at surface.  These structures are the eastern extension of El Cometa. There are other interesting targets in the property but need further mapping and sampling to better define drill targets.
  • GoGold Resources Inc., released drill results from nine holes collared at its Los Ricos South project in Jalisco, including three at San Juan, four at the main Area, one at Rascadero and one at the East Vein. Significant intersections were encountered in hole LR-GG-174 (Main Area) with 2.56 g/t Au and 173 g/t Ag (4.86 g/t AuEq or 365 g/t AgEq) over 15m, including 8.33 g/t Au and 496 g/t Ag (14.94 g/t AuEq or 1,120 g/t AgEq) over 4.4m; hole LR-GG-169 (San Juan) with 3.18 g/t Au and 188 g/t Ag (5.68 g/t AuEq or 426 g/t AgEq) over 4.1m; and hole LR-GG-178 (East Vein) with 1.09 g/t Au and 97 g/t Ag (2.38 g/t AuEq or 178 AgEq) over 4.4m, including 1.88 g/t Au and 171 g/t Ag (4.17 g/t AuEq or 312 g/t AgEq) over 2.0m.

ON MINING

  • Magna Gold Corp., provided an update on its San Francisco mine in Sonora and reported May 2020 production and financial results. In this period, Magna produced and sold 2,349 Oz Au at an estimated cash cost of USD $607 per Oz, resulting in Au sales of USD $4.2M and an operating profit of USD $2.8M. It also announced the commencement of mining and processing fresh mineralized material in August.
  • Santacruz Silver Mining Ltd., reported Q4 and full year 2019 production and financial results from their Mexican mine operations. In Q4, 2019, Santacruz processed 220,154 tonnes to produce 1.32M Oz AgEq at a cash and AISC of USD $ 18.75 and $21.29 per Oz AgEq produced respectively. It reported revenues of USD $9,964 and a net loss of USD $16,017. In 2019 full year, the company processed 469,291 tonnes to produce 2.83M Oz Ag at a cash and AISC of USD $18.34 and USD $21.55 per Oz AgEq produced respectively. It reported revenues for USD $27,140 and a net loss of USD $20,432.

ON FINANCING

  • Aztec Minerals Corp., arranged a non-brokered private placement financing for gross proceeds of CAD $3M with sophisticated investors, shareholders and directors of the Company. Finder´s fees may be payable in cash and / or warrants on certain portions of the financing, subject to regulatory approvals. Part of the net proceeds will be used to conduct exploration work on its Cervantes porphyry Cu-Au project in Sonora and for general working capital purposes.
  • Candelaria Mining Corp., entered into a medium term loan facility with Accendo Banco S.A. for USD $9M. Funds will be used for financing construction of its Pinos project in Zacatecas and for working capital purposes.
  • Mammoth Resources Corp., closed a non-brokered private placement for net proceeds of $141,250, the same that due to demand was increased to $167,475. Gross proceeds will be used for working capital purposes, including corporate development expenses (Tenoriba project, Chihuahua).
  • Megastar Development Corp., closed a non-brokered private placement for gross proceeds of $926,800. Net proceeds will be used to continue exploration on multiple properties within the Oaxaca, Mexico Au-Ag belt optioned from Minera Zalamera S.A. de C.V. (Yautepec, Magdalena and Rama de Oro projects, Oaxaca).
  • Telson Mining Corporation, formed a strategic funding alliance with Accendo Banco for USD $12M. Funds will be used for the construction of the Tahuehueto mining project in Durango and general working capital purposes. Accendo also intends to purchase up to USD $500K of existing debt with Tahuehueto mining project´s suppliers and convert the debt into common shares of Telson. Additionally, Telson intends to conduct a non-brokered private placement for up to $750K.
  • First Mexican Gold Corp., closed the first tranche of its previously announced brokered private placement for gross proceeds of $$1,235,229.73 (Guadalupe project, Sonora).
  • GR Silver Mining Ltd., completed a previously announced bought deal private placement for gross proceeds of $9,153,000. GR plans to use the net proceeds to fund resource expansion and drilling at its Plomosas and San Marcial projects in Sinaloa, and for working capital and general corporate purposes. Brokers who helped with the financing will receive a cash commission of $636,660 and an aggregate of 2,358,000 non-transferable broker warrants at an issue price for a period of 12 months from the closing date of the offering.
  • Magna Gold Corp., announced a non-brokered private placement for net proceeds of up to $7,000,750 and includes lead investments by Eric Sprott and two mining industry participants. The net proceeds from the private placement will be used for working capital purposes in connection with the company’s existing projects. In connection with the private placement, certain parties may receive a finder’s fee payment equal to 6% of the gross proceeds of the offered shares (San Francisco mine, Sonora).
  • Mexus Gold US, announced that on June 13, 2020 it has paid $178,855.49 to satisfy an outstanding debt obligation (Santa Elena mine, Sonora).
  • One World Lithium Inc., approved a temporary management cease trade order which, if granted, will prohibit trading in securities of the company by certain insiders of the company, whether direct or indirect (Salar del Diablo project, Baja California Norte).

ON RESOURCES AND DEVELOPMENT

  • Discovery Metals Corp., released results from 8 drill holes, and extends higher grade at is Cordero project in Chihuahua. Highlights include hole C20-326 with 2,470 g/t Ag, 0.02 g/t Au, and 0.4% Zn (2,489 g/t AgEq) over 0.7m; hole C20-328 with 69 g/t Ag, 0.13 g/t Au, 1.1% Pb, and 1.9% Zn (197 g/t AgEq) over 51.9m, and 62 g/t Ag, 0.22 g/t Au, 1.2% Pb, and 1.3% Zn (174 g/t AgEq) over 62.2m; and hole C20-330 with 38 g/t Ag, 0.16 g/t Au, 0.8% Pb, and 0.8% Zn (112 g/t AgEq) over 85.5m. Based on results Discover has expanded its drilling program from 30,000-35,000m to 50,000-55,000m and will be focused on: 1) “Targeting of broad zones of breccia-hosted mineralization in the east and north-east of both mineralized corridors and 2) Testing of the width, grade and continuity of extensive high-grade vein systems identified in and adjacent to historical artisanal underground workings during the early history of the Project”.
  • Magna Gold Corp., provided an update on its Mercedes and San Francisco properties in Sonora. It reported that a mine design has been completed for its Mercedes project in Sonora, based on the initial drill program completed last year. It also reported that a suite of metallurgical tests work is currently underway. Magna´s objective is to extract 20K Oz Au with minimal associated operating and capital expenditures to provide additional information on the deposit that will guide future drilling and work programs. At San Francisco mine, it announced the execution of an initial four-month drill program in and around San Francisco and La Chicharra open pits to support the conversion of mineral resources to reserves. Magna also has retained Micon International Limited to complete a PFS to re-evaluate the resource model, examine potential operational improvements, and develop an optimized production schedule that incorporates all currently available drill data, updated operating costs and revised gold price assumptions. It is expected to be completed by the end of July, 2020.
  • Sierra Metals Inc., released drill results and confirmed the discovery of a new high grade Ag area called Northeast-Southwest system of epithermal veins at its Cusi mine in Chihuahua. The new high-grade silver vein system was discovered as a consequence of a combination of mine development work in recent months and confirmatory drilling. Significant drill intersections were encountered in hole DC20M658 with 0.1g/t Au, 304 g/t Ag, 0.34%Pb, and 0.25% Zn (327 g/t AgEq) over a true width (TW) of 9.35m; hole DC20M677 with 0.03 g/t Au, 1,140 g/t Ag, 0.37% Pb, and 0.36% Zn (1,163 g/t AgEq) over a TW of 4.90m; hole DC20M686 with 0.04 g/t Au, 428 g/t Ag, 0.46% Pb, and 0.76% Zn over a TW of 17.45m; and hole DC20M687 with 0.45 g/t Au, 890 g/t Ag, 1.74% Pb, and 3.2% Zn (1,151 g/t AgEq) over a TW of 0.85m.

ON DEALS AND CORPORATE ISSUES

  • Bacanora Lithium plc., received notification of the off-market transfer of a portion of the shares beneficially owned by Mark Hohnen, Executive Chairman of the Company. The transfer is ultimately to an existing superannuation pension fund of Mr. Hohnen (Sonora Lithium project, Sonora).
  • Canuc Resources Corporation, announced that it signed a Memorandum of Understanding (MoU) with M3SH Technologies Inc. This will allow Canuc to distribute and sell technological solutions enabling Canuc to facilitate application with mining and extractive industry clients (San Javier project, Sonora).
  • Fortuna Silver Mines Inc., reported results from its annual general meeting of shareholders (San Jose mine, Oaxaca).
  • Oroco Resource Corp., announced that its shares have been approved to trade on the OTCQB Venture market in USA under the symbol “ORRCF”, effective immediately (Santo Tomas project, Sinaloa).
  • Prime Mining Corp., announced key changes in executive management and board of directors, appointing its new CEO, Executive VP, and two new board members. The company also announced that it entered into an amendment to its option agreement on Los Reyes project in Sinaloa, with Vista Gold Inc. The amendment provides for the cancellation of all ongoing NSR and back-in rights held by Vista, in consideration for accelerating the final USD $1.5M option payment owing to Vista and completing a series of additional cash payments totalling USD $2.1M. “Upon the company making the option payment, Vista will no longer retain a capped NSR on production from open-pit mining and a perpetual NSR on production from underground mining.  In addition, Vista will no longer have the Back-in Right to assume a 49% non-carried interest in any underground mining project developed at the property”.
  • Silver Dollar Resources Inc., signed a letter of intent (LOI) to acquire an initial 80% of interest following the exercise of which it may earn an additional 20% for an aggregate 100% interest in La Joya project, Durango from First Majestic Silver Corp. To acquire an 80% interest in la Joya, Silver Dollar will make a cash payment of $1.3M over four years, issue shares equal to 19.9% of Silver Dollar´s then outstanding common shares within one year, incur $1M of exploration expenditures within the first five years, and grant First Majestic a 2% NSR. If Silver Dollar incurs the exploration expenditures within the first three years; however, First Majestic will waive the remaining $600K – or nearly half – of the cash option payments. Silver Dollar may exercise its second option and acquire the remaining 20% (for an aggregate 100%interest) of the La Joya property by providing notice to First Majestic within 30 days of earning the first 80% interest and issuing to First Majestic additional shares equal to 5% of Silver Dollar’s then-outstanding common shares within five years. If Silver Dollar does not provide such notice, Silver Dollar and First Majestic will enter into a joint venture.
  • Newmont Corporation, was ranked top miner in the 100 best corporate citizens list for 2020. It moved from 20th on last year´s list to 13th overall in 3BL Media´s (formerly Corporate Responsibility Magazine´s) 100 Best Corporate citizens (Peñasquito mine, Zacatecas).
  • Torex Gold Resources Inc., notified management changes and results from its annual general meeting of shareholders. It announced the appointment of its new CEO, Executive Chair, and Independent Director (El Limón-Guajes mine complex, Guerrero).
  • Tarachi Gold Corp., retained Digital 257 Technologies Inc., for digital media and capital market communication services. The Company will compensate Digital 257 $10K per month for three months of service. Tarachi also granted 2,735,000 incentive stock options to directors, officers and consultants of the company at an exercise price of $0.31 per share (Juliana project, Sonora).
  • SilverCrest Metals Inc., presented results from its annual general meeting of shareholders (Las Chispas project, Sonora).
  • Silver Spruce Resources Inc., granted 6.75M stock options to directors and consultants of the company with an exercise price of $0.05 per share (Pino de Plata project, Chihuahua).

ON SOCIAL RESPONSIBILITY

  • Mining companies operating in Mexico, have shown their support in different ways to the communities where they operate to face the COVID-19 pandemic. According to the Mexican Mining Chamber (CAMIMEX), 26 mining companies that operate in 16 entities of the country have made different contributions to the sanitary emergency. The contributions have been of a different nature, including donations of medical equipment and personal protection kits, basic services such as water and electricity, medical services, pantries, etc.
  • The Grupo Mexico Foundation, donated preventive kits to the Fire Department, Red Cross and Civil Protection of Hermosillo, Sonora, in order to support public institutions that work daily for the benefit of the community in the face of the health contingency by COVID-19. The Grupo Mexico Foundation delivered 500 protection kits containing goggles, N95 masks to the Fire Department, 500 kits to Civil Protection, and 300 kits to the Red Cross Delegation in Hermosillo, Sonora. It also delivered 35 health and safety kits to the Taxco, Guerrero health sector such as the Adolfo Prieto General Hospital, the Mexican Red Cross Taxco delegation, the Mexican Institute of Social Security and Civil Protection. The donation consisted of 10 packages of safety kits that include tyvek suits, face shield and gloves, and the donation of 25 health kits consisting of tyvek suits, gloves, caps, shoe covers and disposable aprons.
  • Minera Media Luna (Torex Gold), delivered preventive material for the COVID-19 health contingency and surgical material to strengthen the health infrastructure in the Health Centers and Houses of the communities of Nuevo Balsas, Atzcala, Real del Limón and La Fundición, in the municipality of Cocula and Valerio Trujano and in the neighborhood of Tepecoacuilco, in Guerrero state.
  • Minera Penmont (Fresnillo plc), strengthened security protocols to guarantee safe and contagion-free workspaces for its collaborators. The protocols that the company has implemented have been in accordance with the guidelines defined by the Secretaries of Health, Economy and Labor of the Federal Government. Minera Penmont reinforced the cleaning tasks in all its facilities and disinfection of transport trucks for collaborators and suppliers. It placed disinfectant gel in areas of greater affluence and promoted the use of masks in offices and respirators in operating areas. In addition, it installed sanitary filters in which the health status of the personnel was evaluated with first-class equipment and the latest technology such as infrared thermometers and a thermal imager.
  • Mina San Dimas of First Majestic received medical equipment to face contingency for COVID-19 in the San Dimas communities through the company clinic. It received specialized medical equipment to care for patients with acute respiratory diseases, other equipment including oxygen concentrators, laryngoscopes, as well as a capnograph and a portable emergency ventilator that together have a market price of around USD $65K.

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, ptygmatic folds developed in a meta-sedimentary sequence in an orogenic Au prospect in Michoacan, Mexico.  Photo by Miguel A Heredia.

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

172

By Jorge Cirett

During the 24th week of the year (June 8th to June 14th, 2020), at least 35 press releases were announced by companies working in Mexico. Notably, 8 of those were exploration updates and 9 related to financing. ON MEXICO ISSUES, Senator Miguel Lucero and a coalition of mining unions proposed the creation of the Mining Secretariat, against the presidential bid to close the Sub-Secretariat of Mining. The Mexican president asked publicly the Canadian ambassador for help to get Canadian mining companies to pay due taxes. First Majestic asked the Canadian ambassador to intervene on the tax dispute. Copper prices have reached $2.60 per pound. Two rival unions were involved in a brawl in Fresnillo, Zacatecas. Francisco Quiroga Sub-Secretary of Mining informed that mines in Mexico are free of confirmed Coronavirus cases. All mines have procedures in place to detect and control outbreaks on transport and work sites. ON EXPLORATION, in Sonora, Silver Viper resumes drilling at La Virginia; Aztec Minerals updated on exploration at its Cervantes project; Colibri presented assay results from grab samples at the Evelyn project. In Chihuahua, Kootenay Silver recommenced drilling at Columba. In Sinaloa, Kootenay Silver restarted drilling at the Copalito property. In Durango, Mithril Resources prepares to drill the Copalquin project. In Jalisco, GoGold Resources began drilling Los Ricos North project. ON MINING, Mexus Gold continues mining at its Santa Elena property. Peñoles is to invest one billion dollars in 2020 in its mining operations. Fresnillo PLC reported on payments to governments of Mexico and Peru. ON FINANCING, Minaurum closed a private placement netting $4.21 M. Discovery closed the second and final tranche of its private placement, accruing C$25 M. Silver Viper commenced trading on the OTCQB in USA. Sonoro Metals realized a third MOU on its Cerro Caliche project, Sonora. Starcore paid its debts and is now debt free. Consolidated Zinc is to raise $0.57 M to purchase equipment. Vangold accelerated the warrant program relating to its 2019 placement. Prime Mining completed the offering for C$10 M. Mag Silver now holds 19.9% of Reyna Silver.   ON RESOURCES AND DEVELOPMENT, Mexican Gold started the fieldwork needed to complete the environmental baseline report at its Las Minas property in Veracruz. Minera Alamos reported more drill results from its Santana project in Sonora. Capstone updated on the mineral resources of its Cozamin mine in Zacatecas, showing a nice increase. ON DEALS AND CORPORATE ISSUES, Magellan Gold is leaving Mexico. Mithril Resources appointed new CEO and Chief Geologist. Sonoro Metals postponed its general meeting. Evrim Resources and Renaissance Gold are merging into a new entity named Orogen Royalties. Silver Spruce optioned the El Mezquite property in Sonora. GR Silver Mining filed on SEDAR the amended technical report on its San Marcial project. ON SOCIAL RESPONSIBILITY. Grupo Mexico, Fresnillo PLC, Argonaut Gold, Bylsa Drilling, Asociación de Real de Minas de San Javier, SilverCrest, Alamos Gold, Agnico Eagle, EMS, Molymex, Metallorum-Autlán, FLSmidth, First Majestic, Gruminex, Peñoles, Barimont, MAC Distribuciones, Dynapro Pumps, Cobre del Mayo, Minera Capela, Peña Colorada and Newmont Corp. informed on a large  array of investments and measures that benefit the mining communities.

ON MEXICO ISSUES

  • Senator Miguel A. Lucero (president of the mining and regional development commission in the senate) proposed the creation of the Mining Secretariat. This was his viewpoint in the rumors that the president Lopez Obrador is about to disappear several sub secretariats on grounds of saving resources. He stressed that the mining industry operates in over 200 municipalities that deserves close attention.
  • The Union Nacional de Sindicatos MineroMetalurgicos de Mexico asked the president Lopez Obrador to evaluate the creation of a Mining Secretariat, to foster national and foreign investment and generate jobs.
  • The President of Mexico, Andres Manuel Lopez Obrador (AMLO) asked publicly the Canadian ambassador for help to get Canadian mining companies to pay due taxes. He stated that the debts are clear and that there is no point on the mining companies to seek legal complaints.
  • First Majestic Silver Corp. has asked Canada’s ambassador to Mexico to intervene in an escalating tax dispute with President Andres Manuel Lopez Obrador’s government. “We’ve been trying to get somebody to the table to finally put this behind us,” First Majestic CEO Keith Neumeyer told Reuters. Neumeyer said the company had proposed three settlement offers since 2018 before launching the trade challenge last month. “Each of the offers has been rebuffed”.
  • Copper prices grew 25% from its March minimums, reaching US$2.60 per Lb thanks to the Chinese recovery.
  • Rival Unions in Fresnillo, Zacatecas, participated in a brawl that resulted in several persons conducted to a nearby hospital for medical care. This arises for a rivalry between the Sindicato Nacional Minero Metalúrgico (FRENTE) and the Sindicato Independiente for representation of workers at the Fresnillo mine.
  • Francisco Quiroga, Sub-Secretary of Mining informed that mines in Mexico are free of confirmed Coronavirus cases. All mines have procedures in place to detect and control outbreaks on transport and work sites.

ON EXPLORATION

  • VanGold Mining Corp. completed a bulk sample and metallurgical test at its Pinguico project in Guanajuato. The 1,039 tonne bulk sample was processed at Endeavour Silver Corp’s Bolañitos mill in Guanajuato, with an average grade of 1.23 gpt AuEq, and a recovery rate of 75.2% Au, 60.4% Ag.
  • Silver Viper Minerals Corp. resumes exploration at its La Virginia project in Sonora. “The recently renewed work program continues Phase II drilling at the El Rubi discovery area, where systematic testing of the structure is being conducted on 50m sectional step outs. A second drill will test exploration targets in and around the El Rubi location”.
  • Kootenay Silver Inc. recommenced drilling at its Columba project in Chihuahua. The initial holes of the remaining 5,200 meters of the phase II 7,000 m program “will focus on expanding the F-vein by following-up on positive results from the first 10 holes of the Program…… Beyond augmenting previously drilled areas the Program will investigate untouched veins mapped out by Kootenay’s geological team”.
  • Aztec Minerals Corp. updated on the exploration of the Cervantes project in Sonora, in advance of the signing of the 65/35 joint venture agreement with Kootenay Silver Inc. Highlights from the 2017 drilling program at the California target include the following intercepts: 160 m @ 0.77 gpt Au (including 80 m @ 1.04 gpt Au, 0.11% Cu); 139 m @ 0.71 gpt Au (including 20 m @ 2.10 gpt Au, 0.16% Cu); 118 m @ 0.63 gpt Au (including 43 m @ 1.18 gpt Au, 0.16% Cu); 122 m @ 0.60 gpt Au (including 62 m @ 0.88 gpt Au, 0.06% Cu); 170 m @ 0.42 gpt Au (including 32 m @ 0.87 gpt Au, 0.06% Cu). Other targets include Purisima East, Estrella, Purisima West and Jasper. Preliminary metallurgical tests have shown 85.1% to 87.7% Au recovery in oxide, 77.9% Au recovery in mixed oxide/sulfide and 51.2% in sulfide.
  • Kootenay Silver Inc. recommenced drilling at its Copalito property in Sinaloa. The 3,000 m drill program was halted due to the Coronavirus lockdown when only one 105.2 m hole had been completed. Over 10 kilometres of untested vein strike has been mapped, with strike lengths up to 2 km and widths from 0.5 m to 15 m. Previously reported grab and channel samples have returned up to 3,770 gpt Ag, 8.2 gpt Au, 17.4% Zn, 9.9% Pb and 1.5% Cu.
  • GoGold Resources Inc. began drilling at the La Trini target, part of the Los Ricos North project in Jalisco. Historical intersections by Tumi Resources include: 24.4 m @ 6.4 gpt Au, 1,629 gpt Ag; 18.3 m @ 3.1 gpt Au, 150 gpt Ag; 6.1 m @ 2.8 gpt Au, 174 gpt Ag; 19.7 m @ 4.9 gpt Au, 193 gpt Ag; 14.1 m @ 4.9 gpt Au, 261 gpt Ag; 10.5 m @ 5.7 gpt Au, 188 gpt Ag.
  • Mithril Resources Ltd. prepares to drill its Copalquin project in Durango. “Drilling and helicopter support contracts have been signed with mobilisation of equipment commencing in June 2020…… Previous drilling has identified three areas with underground mineable grades over potentially mineable widths. These areas are El Refugio, La Soledad and El Cometa (which also include open pit resource potential). Mithril’s drilling campaign will systematically test each of these high-priority areas and will also drill test Los Reyes, Los Pinos, and later La Constancia and the important San Manuel multi-level mine workings”.
  • Colibri Resource Corp. received assays from samples collected on the western part of the Evelyn property in Sonora. The western part of the project is mostly covered by a thin veneer of alluvium and colluvium. More than 50 grab samples have been taken from small areas of sub-crop and outcrop exposed through the cover. “Three samples returned values greater than 2.0 g/t Au, 6 samples returned values greater that 0.25 g/t Au, and a total of 15 samples returned anomalous Au” up to 27.5 gpt Au.

ON MINING

  • Mexus Gold US. continues mining and expects to put 1,800 tons of material in the leach pads by the end of this week, on its Santa Elena mine in Sonora (not to mistake for First Majestic Santa Elena mine, also in Sonora).
  • Industrias Mineras Peñoles. is to invest one billion dollars in Mexico this year, regardless of the economic downturn by the Coronavirus pandemic.
  • Fresnillo PLC. reported on payments done to Mexico and Peru governments derived from its operations in both countries. The company paid in Mexico a total of US$233.7 M in Mexico, of which US$28.6 M were from licences and mining concessions fees.Fresnillo PLC Report on Payments to Governments1

ON FINANCING

  • Minaurum Gold Inc. announced the closing of the previously announced non-brokered private placement, for gross proceeds of $4.21 M, with the prominent participation of Sprott Global Resources Investments Ltd. (Alamos Silver, Sonora).
  • Discovery Metals Corp. closed the second and final tranche of its non-brokered private placement for aggregate proceeds of C$25 M. “The Company also announces it has received approval by the Mexican government to resume operations at its Cordero project with strict COVID-19 health and safety protocols”. The company has over $40 M in cash on its balance sheet (Cordero, Chihuahua).
  • Silver Viper Minerals Corp. commenced trading on the OTCQB Venture Market in the United States (La Virginia, Sonora).
  • Sonoro Metals Corp. executed a third memorandum of understanding (MoU) for the finance and development of its proposed Cerro Caliche Heap Leach Pilot Operation. As of February 28, 2020, Sonoro had received two executed MoUs regarding project debt financing and EPC services for its proposed Cerro Caliche heap leach (Cerro Caliche, Sonora).
  • Starcore International Mines Ltd. reported that the company paid out CAD$3 M of secured bonds plus accrued interest of CAD$235.4 K. In addition to this, the company also repaid a US$1 M loan. The payments were made from the Company’s cash flow generated from mine operations and prior asset sales (San Martin mine, Queretaro).
  • Consolidated Zinc Ltd. announced firm commitments to raise a further $0.57 M via a single tranche placement. “Funds raised from the Placement will be applied towards the purchase of equipment to increase efficiencies at Plomosas, working capital and offer costs” (Plomosas, Chihuahua).
  • VanGold Mining Corp. announced that to date the warrant acceleration program in connection with the company’s 2019 placement has rendered $1.16 M in gross proceeds of which $650 K were accrued by the exercise of warrants by Vangold’s directors and officers. “…funding for a portion of the exercise of warrants by directors and officers was facilitated through the sale of a portion their existing share holdings” (El Pinguico, Zacatecas).
  • Prime Mining Corp. announced the completion of the offering for gross proceeds of C$10 M (Los Reyes, Sinaloa).
  • Mag Silver Corp. has acquired 14.55 M shares of Reyna Silver Corp., owning to date 19.9% of its outstanding shares.

ON RESOURCES AND DEVELOPMENT

  • Mexican Gold Mining Corp. announced “that fieldwork towards completing an environmental baseline study has commenced at the Las Minas project. Drilling at Las Minas is scheduled to commence in early July”.
  • Minera Alamos Inc. reported more drilling results from its Phase II program at its Santana project in Sonora. The results further expand mineralization to the SW, and confirm the depth potential previously identified. Highlighted core length intervals comprise: 202.7 m @ 0.51 gpt Au; 105.6 m @ 0.31 gpt Au, 50.9 m @ 0.34 gpt Au; 90.0 m @ 0.40 gpt Au; 43.3 m @ 0.61 gpt Au; 42.5 m @ 0.36 gpt Au; 62.5 m @ 0.31 gpt Au, 188.2 m @ 0.28 gpt Au.
  • Capstone Mining Corp. updated the mineral resource estimate for the Cozamin mine in Zacatecas.cozamin-june2020-resource-estimate-update1cozamin-june2020-resource-estimate-update21

ON DEALS AND CORPORATE ISSUES

  • Magellan Gold Corp. is redirecting its focus toward opportunities within the United States. “the company has divested all of its Mexico operations through the sale of its subsidiary Magellan Acquisition Corp.”. Among the operations divested is the SDA mill and the El Dorado property, both in Nayarit.
  • Mithril Resources Ltd. appointed John Skeet as its new CEO and Hall Stewart as its Chief Geologist (Copalquin, Durango)
  • Sonoro Metals Corp. postponed its annual general meeting to September 4, 2020 (Cerro Caliche, Sonora).
  • Evrim Resources Corp. and Renaissance Gold Inc. entered into an agreement to combine in a merger of equals “in which Evrim will acquire all of the outstanding common shares of Renaissance through a share exchange transaction to create a new company, to be named Orogen Royalties Inc. Orogen will focus on project generation as has been the history of both Evrim and Renaissance but with a renewed focus on organic royalty creation and royalty acquisition” (royalty in Ermitaño, Sonora).
  • Silver Spruce Resources Inc. signed a binding option agreement with Colibri Resources Corp. to acquire 50% interest in its wholly owned Mexican subsidiary Yaque Minerals S.A. de C.V., which holds the El Mezquite project in Sonora. El Mezquite is 12 Km NE of the Santana property, currently under mine development by Minera Alamos. To obtain 50% interest Silver Spruce has to pay US$82.5 K by September 1, 2020, US$127.5 K by September 1, 2021, and CDN$500 K for a debenture due in October 2023. The company will have the option to pay US$107.5 K by December 31, 2020 to complete the cash acquisition for a discounted total of US$190 K. Minimum work expenditures total US$600 K on the four year term of the agreement. A 1% royalty to the original vendors of the property can be purchased for US500 K at any time.
  • GR Silver Mining Ltd. filed on SEDAR its amended technical report on resources estimation of its San Marcial project in Sinaloa. There are 12 amendments in different parts of the report, with no material differences on the resource estimation.

ON SOCIAL RESPONSIBILITY

  • In Sonora more than 125 thousand persons in 30 municipalities and 47 rural communities have received support by 13 mining companies and six service providers: Grupo México, Fresnillo Plc, Argonaut Gold, Bylsa Drilling, Asociación de Real de Minas de San Javier, SilverCrest, Alamos Gold, Agnico Eagle, EMS, Molymex, Metallorum-Autlán, FLSmidth, First Majestic, Gruminex, Peñoles, Barimont, MAC Distribuciones, Dynapro Pumps and Cobre del Mayo).
  • The mining sector in Mexico strives nowadays for social co-responsibility between community, government and enterprises, where the communities define their needs and priorities, the government complies with its responsibilities and enterprises promote and provide resources, organize community committees and develop executive projects.
  • The world day of the environment was held in Teloloapan, Guerrero, with the presence of Efrén Romero, municipal president, Army members and Minera Capela executives.
  • In Cuencamé, Durango, a road work investment of 11 million pesos was inaugurated by Luly Martínez. Municipal president. The investment was made possible with resources from the Mining Fund.
  • Agnico Eagle received the Environmental Excellence Award from the Mining Association in Canada, for its work in Pinos Altos, Chihuahua, where was developed an ultra-high density grazing initiative.
  • Peña Colorada builds a medical facility in Manzanillo. With an investment of 4 M pesos, the facility will count with an area for patient care, and another area for the rest of the medical personnel, as this new building is by the side of the Hospital General de Manzanillo.
  • Newmont Corp. published its 2019 sustainability report. The report displays all the work planned and done by the company as it strives to better its environmental, social and governmental imprint in Mexico.
  • Bylsa Drilling efforts on social responsibility on the communities neighboring the Las Chispas and Alamos Silver projects in Sonora were commended by governor Claudia Pavlovich.
  • The Mining Fund provided the resources to build the Doctores Avenue in Fresnillo, Zacatecas. The 27.14 million pesos invested funded 670 m of paving and drainage construction.
  • Grupo Mexico restated its compromise on the state of Chihuahua with the donation of a termo-cycler to the State Health Laboratory. Previously the company had donated five mechanical ventilators to the University Central Hospital, same that shortly is to receive 25 non-invasive ventilators more.

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: Quartz-graphite vein, Hermosillo District, Sonora. Picture by Jorge Cirett.

172

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

tight folds

By Miguel A Heredia

During the twenty three week of the year (June 1st to June 7th, 2020), at least 49 press releases were announced by companies working in Mexico, with fifteen commenting on Mexican issues, twelve communicating resumptions, production and financial results, six announcing financial rounds, five discussing on social issues, five reporting on resources and developments, three disclosing deals and corporate issues, and three informing on exploration results.  ON MEXICO ISSUES, The Undersecretary of Mining and the state Governors declared that the resumption of the mining activities in the first week of June has been successful. Francisco Quiroga, the Undersecretary of Mining, stated that the mining sector will sustain part of the national economic recovery after the COVID-19 pandemic.  The Mexican government, in a very unfortunate statement, declared that it is analyzing the possibility to disappear the Undersecretariat of Mining. Fernando Alanís, president of the Mexican Mining Chamber (Camimex), stated that Mexico’s mining production would drop 17% this year due to coronavirus pandemic. The deputy of the PRI, Carlos Pavón Campos, will present a proposal requesting that the Mining Fund returns to be used in accordance to its original objective. Esperanza Silver de México (Alamos Gold Inc.) announced that it expects to create hundreds of direct + indirect jobs if they open its Esperanza mine in Morelos. According to Fernando Alanis, president of the Mining Chamber of Mexico (CAMIMEX), mining companies plan to invest USD $4B in 2020.  Resuming of the mining activities in Oaxaca will activate 10,000 jobs. ON EXPLORATION, In Sinaloa, Vizsla recommenced drilling at its Panuco project. In Zacatecas, Advance Gold provided an exploration update on its Tabasqueña project. In Jalisco, GoGold resumed drilling at its Los Ricos project.  ON MINING, Several mining, such as GoGold, Great Panther, Avino, Argonaut, Impact Silver, Pan American Silver, Telson, Excellon, and Sierra Metals among others, announced the restart of their Mexican mining operations after receiving approval of the Mexican Social Security Institute (IMSS).  Mexus Gold reported its May 2020 production results from its Santa Elena mine in Sonora. US Antimony reported its Sb and zeolite production for the month of May 2020. Excellon presented Q1 2020 production and financial results (La Platosa, Durango).  ON FINANCING, Advance Gold announced a non-brokered private placement for gross proceeds of up to $300K (Tabasqueña project, Zacatecas). Discovery Metals closed the first tranche of a CAD $35M non brokered private placement, for aggregates proceeds of CAD $17.1M (Cordero project, Chihuahua). Magna Gold closed its previously announced non-brokered private placement for gross proceeds of $7M (San Francisco mine, Sonora). Silver Viper closed its previously brokered private placement for gross proceeds of CAD $5.12M (La Virginia project, Sonora). Alamos Gold declared quarterly dividends of USD $0.015 per common share (Mulatos mine, Sonora).  Pan American Silver announced the closing of its overnight marketed secondary offering of common shares of Maverix Metals Inc., in which it raised gross proceeds of USD $45.54M (La Colorada mine, Zacatecas).  ON RESOURCES AND DEVELOPMENT, VanGold concluded its +1,000 tonnes bulk sample and metallurgical test of mineral material from its Pinguino project in Guanajuato. Premier announced an update on its delineation core drilling program at its Mercedes mine in Sonora. US Antimony reported that a thickener circuit is being constructed on site at its Puerto Blanco mill in Guanajuato.  Endeavour released new high grade Au-Ag drill results from its Guanacevi mine in Durango. Golden Minerals President & CEO spoke about its Velardeña and Rodeo projects in Durango and its intention to bring them into production in 2021.   ON DEALS AND CORPORATE ISSUES, Canuc postponed the filing of its interim consolidated financial statement and management´s discussion and analysis for the period ended March 31, 2020 due to the COVID-19 pandemic (San Javier project, Sonora).  San Marco granted stock options to directors and officers (Chunibas project, Sonora). Newmont published its 2019 sustainability report (Peñasquito mine, Zacatecas).  ON SOCIAL RESPONSIBILITY, Consorcio Minero Peña Colorada invested MXP $4M to refurbish health unit in Manzanillo, Colima. The Grupo Mexico Foundation delivered important donation to the Health Sector of Chihuahua and Sombrerete, Zacatecas. Minera Cuzcatlán (Fortuna Silver) donated medical ventilator, pantries, medicines and cleaning kits in Oaxaca. Minera San Julián (Fresnillo plc) delivered a mechanical ventilator and personal protection equipment to medical personnel of the Mexican Social Security Institute (IMSS) of Parral, Chihuahua.

ON MEXICO ISSUES

  • The Undersecretary of Mining and the state governments, declared that the resumption of the mining activities in the first week of June has been successful. Almost 90% of the companies in the sector are already on work, thanks to the support of Francisco Quiroga, the Undersecretary of Mining of the Ministry of Economy, who established agreements with Governors of the states and with the companies, so that they could return to work safely and without risk of COVID-19 infections. The remaining 10% of mining companies are preparing sanitary protocols to resume activities in the coming days.
  • Francisco Quiroga, the Undersecretary of Mining, stated that the mining sector will sustain part of the national economic recovery after the COVID-19 pandemic. Activities derived from the mining industry serve to maintain various communities and even in some areas is the main source of economy. The mining sector is carrying out its reactivation of activities in a progressive way and with respect to health protocols. The sector has always worked with rigorous safety protocols to carry out its activities,
  • The Mexican government, in a very unfortunate statement, declared that it is analyzing the possibility to disappear the Undersecretariat of Mining. The measure would be in complete contradiction to the recent recognition of mining as an essential sector that generates 2.6 million jobs, has an impact in 10 states of the country and represents around 3% of GDP. The president AMLO has suggested the imminent disappearance, conversion, or inclusion in another agency, in order to reduce public spending. It occurs just when the Undersecretary of Mining, Francisco Quiroga, reached agreements with Governors, and the mining companies and their representatives have worked hard in a coordinated way to implement the security protocols. Entrepreneurs in this area, both Mexican and foreign, consider that the disappearance of the Undersecretariat of Mining may be negative for a sector that represents around 8% of industrial GDP. The panorama is worrying, since it seems to show the little interest of the current administration to encourage the development of the mining sector. Mining companies and their representatives see this measure as a setback for the country´s development. AMLO stated that to date, none decision has been taken so far, and recognized that mining is a fundamental economic activity that generates many jobs in the case of Sonora, Chihuahua, Durango, and the rest of the mining states.
  • Fernando Alanís, president of the Mexican Mining Chamber (Camimex), stated that Mexico’s mining production would drop 17% this year and the sector´s export could decrease by around 10% due to the cessation of operations to contain the spread of the coronavirus. He also said that although activities in the industry were beginning to resume and about half of the operating personnel had returned to work, exploration work remained suspended and anticipated that the pandemic would also have ended with some 71,000 indirect jobs in the local sector.
  • The deputy of the PRI, Carlos Pavón Campos, will present a proposal in the Chamber of Deputies, requiring that the Mining Fund returns to carry out infrastructure works in the municipalities of the country where mining activity is performed, with the purpose of promoting the development of the communities, which was its original objective.
  • Esperanza Silver de México (Alamos Gold Inc.), announced that it expects to create hundreds of direct + indirect jobs if they open its Esperanza mine in Morelos. Esperanza Silver, under the scheme of a “New Model of Social and Environmentally Responsible Mining” policy, wants to bring its project to the community of Tetlama to protect the environment and generate employment that is essential for the economic reactivation of the state due to the direct + indirect jobs that will be generated, the value chains and supplies that will be activated, and the generation of taxes that will favorably impact state and municipal public finances. The company has projected an estimated investment of USD $450M to bring into production its mining project.
  • According to Fernando Alanis, president of the Mining Chamber of Mexico (CAMIMEX), mining companies plan to invest USD $4B in 2020, which represents 14% more than in 2019, despite the COVID-19 health crisis.
  • Resuming of the mining activities in Oaxaca, will activate 10,000 jobs. The mining personnel will carry out all the health and training protocols to avoid COVID-19 infections, supervised by the Mexican Social Security Institute (IMSS).

ON EXPLORATION

  • Vizsla Resources Corp., announced that it has re-commenced drilling at its Panuco project in Sinaloa. It had previously announced the return of its staff to the project on May 21, 2020 to execute its exploration program at its district-scale project.
  • Advance Gold Corp., provided an update on its Tabasqueña project in Zacatecas. The CEO of the company stated that they have hit what appears to be a very large sulphide system with their recent drilling program collared into a 3.2Km continuous IP chargeability anomaly. These holes encountered promising grades in the stacked lenses of disseminated sulphides. Next step will be to drill the core of the system on the hinge zone of the IP chargeability anomaly, where it increases in width, to confirm the identified mineralization.
  • GoGold Resources Inc., resumed drilling at its Los Ricos project in Jalisco. The Company is nearing completion of resource drilling at Los Ricos South for its upcoming 43-101 compliant resource calculation.

ON MINING

  • Several mining companies, such as GoGold, Great Panther, Avino, Argonaut, Impact Silver, Pan American Silver, Telson, Excellon, and Sierra Metals, among others, announced the restart of their Mexican mining operations following a government order adding mining to the list of essential services, and after receiving approval from the Mexican Social Security Institute (IMSS).
  • Mexus Gold US, reported May 2020 production results from its Santa Elena mine in Sonora. It produced 102 Oz Au. The company announced that it plans to produce 150 Oz Au in June 2020. The heap leach pad at the Santa Elena mine currently holds 18,000 tons of mineralized material. Head grades are estimated at 3 to 4 g/t Au.
  • US Antimony Corporation, announced that it produced 108.9K Lb Sb and 1,129 tonnes of zeolites during the month of May 2020.
  • Excellon Resources Inc., presented Q1 2020 production and financial results from its La Platosa mine in Durango. It processed 19,042 tonnes of 542 g/t Ag, 5.4% Pb and 6.8% Zn to produce 296.3K Oz Ag, 1.89M Lb Pb, and 2.1M Lb Zn (or 523.7K Oz AgEq) with metallurgical recoveries of 89.3%, 82.8%, and 74.9% respectively.  Total cash and AISC of USD $15.35 and USD $26.52 per Oz Ag payable was reported respectively. The company had revenues of USD $6.6M, gross loss of USD $0.1M, cash and cash equivalents of USD $8.4M.

ON FINANCING

  • Advance Gold Corp., announced a non-brokered private placement to raise gross proceeds for a maximum of $300K. Net proceeds will be used to advance its Tabasqueña project in Zacatecas and for general corporate purposes.
  • Discovery Metals Corp., closed the first tranche of a CAD $35M non brokered private placement, for aggregates proceeds of CAD $17.1M. Discovery intends to close a further CAD$7,9M in subscriptions in a second tranche of the private placement, for an aggregate total of CAD $25M. Net proceeds of the first tranche will be used to fund their Cordero and Coahuila projects in Chihuahua and Coahuila states respectively, and for general working capital purposes.
  • Magna Gold Corp., closed its previously announced non-brokered private placement for gross proceeds of $7M. Gross proceeds will be used for working capital purposes in connection with their existing projects (San Francisco mine and Mercedes and San Judas projects, Sonora).
  • Silver Viper Minerals Inc., closed its previously announced brokered private placement for gross proceeds of CAD $5.12M. A cash commission of CAD $218,770 was paid to the brokers, representing a 6% of the gross proceeds. Silver Viper will be used the net proceeds to fund the development of its Virginia project in Sonora, and for working capital and general corporate purposes.
  • Alamos Gold Inc., declared quarterly dividends of USD $0.015 per common share. The company has paid dividends for 11 consecutive years during which time USD $173M has been returned to shareholders through dividends and share buybacks.
  • Pan American Silver Corp., announced the closing of its overnight marketed secondary offering of common shares of Maverix Metals Inc., in which Pan American raised gross proceeds of USD $45.54M (La Colorada mine, Zacatecas).

ON RESOURCES AND DEVELOPMENT

  • VanGold Mining , concluded its +1,000 tonnes bulk sample and metallurgical test of mineral material from its Pinguino project in Guanajuato. This bulk sample was sent to Endeavour’s Bolañitos mill, located approximately 28km from El Pinguico project. The company will report the results obtained once the information is received. On the other hand, crews are clearing the bottom of the El Pinguino shaft since approximately 30 m of debris has accumulated at the bottom. Once it is done, VanGold plans to sample the bottom of the underground stockpile in order to determine if the grades of Au and Ag obtained on the top of the stockpile extends to the bottom of it; inspecting the #7 Sangria adit since it may provide a potential safe and inexpensive haulage way to bring the underground material to surface; and sample the Colmillo stope since it was a high grade portion of the Pinguico mine during the period prior to its closure in 1913.
  • Premier Gold Mines Limited, announced an update on its delineation core drilling program at its Mercedes mine in Sonora. The 2020 delineation drilling campaign is focused on expanding and confirming higher-grade mineralization in several areas including Marianas and Diluvio West. Highlights at Diluvio West include hole UG-DI20-096 with 6.1 g/t Au and 23 g/t Ag over 84.7m, and hole UG-DI20-095 with 6.38 g/t Au and 14 g/t Ag over 73.5m. At Marianas, good drill intersections were encountered at hole UG-MR20-056 with 11.67 g/t Au and 56g/t Ag over 5.2m and hole UG-MR20-059 with 9.74 g/t Au and 16 g/t Ag over 11.3m. Diluvio consists of a stockwork system that is divided into Diluvio Central, hosted in felsic volcanoclastic, and Diluvio West hosted in an andesite while Marianas represents the down-plunge extension of the main Mercedes mine trend.
  • US Antimony Corporation, reported that a thickener circuit is being constructed on site at its Puerto Blanco mill in Guanajuato to increase the production rate and control the pulp density of ore to be processed. “The company is anxious to continue on the cyanide leach of the gold and silver Los Juarez ore now that they will have a thickener.”
  • Endeavour Silver Corp., released drill results of 18 holes collared in the Santa Cruz vein on the El Curso property at its Guanacevi mine in Durango, of which 12 holes reported new high grade Au-Ag values over minable widths. Drilling highlights include hole UCM-27 with 3.25 g/t Au and 1,085 g/t Ag (1,410 g/t AgEq) over a true width (TW) of 10m; hole UCM-26 with 1.87 g/t Au and 762 g/t Ag (949 g/t AgEq) over a TW of 5.1m; and hole UCM-25 with 1.43 g/t Au and 986 g/t Ag (1,129 g/t AgEq) over a TW of 4.8m. This drilling program confirmed the extension of the P4 orebody, and now the extension measures 200 m long by 300 m deep, still open at depth, and discovered a new mineralized zone to the west of the P4 extension of 250 m long by 150 m deep, still open along strike and at depth.
  • Golden Minerals Company President & CEO, spoke about its Velardeña and Rodeo projects in Durango and its intention to bring them into production in 2021. The company is currently generating revenue through the lease of its oxide mill in Mexico to Hecla Mining Company, and intends to bring into production its Rodeo open pit Au project in 2021 after the lease concludes with Hecla at the end of 2020. Rodeo, according to the PEA “is capable to provide almost USD $25M in after-tax cash flow in two years of production. The goal of the company is to use the cash generated from Rodeo to finance a potential startup for its Ag-Au Velardeña project. Velardeña’s 2020 PEA shows an USD $86M NPV”.

 ON DEALS AND CORPORATE ISSUES

  • Canuc Resources Corporation, postponed the filing of its interim consolidated financial statement and management´s discussion and analysis for the period ended March 31, 2020 due to the COVID-19 pandemic (San Javier project, Sonora).
  • San Marco Resources Inc. granted stock options to directors and officers (Chunibas project, Sonora).
  • Newmont Corporation, published its 2019 sustainability report, “Beyond the Mine”, a transparent and comprehensive disclosure of the Company’s environmental, social and governance (ESG) performance.

ON SOCIAL RESPONSIBILITY

  • Consorcio Minero Peña Colorada S.A. de C.V., invested MXP $4M to reconvert a building attached to the Manzanillo General Hospital, providing it with medical equipment and furniture for 3 medical care modules and one more for the rest of medical personnel.
  • The Grupo Mexico Foundation, delivered important donation to the Health Sector of Chihuahua, which consisted of five new mechanical ventilators, 15,000 medical equipment consisting of N-95 masks, disposable gowns, face masks, goggles, overalls, boot covers, respirators, aprons and gloves, as well as ultrasound equipment, portable X-rays and monitoring panels. The donation also included 25 non-invasive ventilators and 10,000 serological tests for COVID-19, which will allow detecting a greater number of people infected and have a broader overview of the behavior of the disease in the state. Additionally, Grupo México Foundation also joined the Chihuahua Food Program, by donating 650 pantries to support vulnerable groups in the municipalities of Aquiles Serdán and Santa Bárbara. In Sombrerete, Zacatecas, the Grupo Mexico Foundation also delivered more than 1,700 articles of medical supplies consisting of tyvek coveralls, N95 masks, face shields, disposable gowns and boot covers, and alcohol gel, and donated 700 pantries to the municipality of Sombrerete through the Municipal DIF to be distributed among the groups most at risk from this epidemic, as is the case of older adults in the Divine Providence Asylum that received 40 pantries with items from the basic food basket.
  • Compañía Minera Cuzcatlán (Fortuna Silver Mines Inc., donated MXP $1.3M to the Business Contingent Exchange and the Medical Support Program promoted by the Oaxaca Ministry of Economy to buy an equipment for ventilation and respiratory monitoring in the Intensive care unit, and delivered more than 3,300 pantries, 3,400 family cleaning packages and 4,600 medicines to the population of San José del Progreso and communities close to the operation of the San José mining unit. It is estimated that these actions have benefited more than 7,000 Oaxacans.
  • Minera San Julián (Fresnillo plc), delivered a mechanical ventilator equipment to the Mexican Social Security Institute (IMSS) of Parral, Chihuahua and donated more than 2,000 pieces of personal protective equipment such as 50 tyvek suits, 200 N-95 face masks, 200 surgical fabric mouth masks, 600 mine-made mouth masks, 1,000 pairs of nitrile gloves and 50 safety glasses to employees of the health institution.

 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, tight folds in an orogenic Au prospect in Michoacan, 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.

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

Cervantite crystals in jasperoids

By Miguel A Heredia

During the seventeen week of the year (April 20th to April 20th, 2020), at least 41 press releases were announced by companies working in Mexico, with ten discussing issues on social responsibility, six informing on exploration results, six, commenting on Mexican issues, six announcing financing rounds, five communicating production and financial results, four disclosing deals and corporate issues and four reporting on resources and developments.  ON MEXICO ISSUES, The Mexican Federal Government has ordered an extension of the suspension of non-essential activities in Mexico until May 30, 2020 in response to COVID-219 pandemic. Firms affiliated to the Mexican Mining Chamber joined to fight against the COVID-19 pandemic.  The Secretary of Economic Development of the State of Colima requested the release of the Mining Fund to face contingency caused by COVID-19 pandemic. The Government of Mexico ordered to paralyze the mining sector from March 30 to May 30, not considering it an essential activity. The Secretary of Tax Administration (SAT) owes USD $1B to mining companies operating in Mexico. A senator of the MORENA party promotes that mining to be considered essential activity. ON EXPLORATION, In Sonora, Riverside defined high-grade targets and received drill permits for its Los Cuarentas project, and Silver Viper reported high-grade drilling results from its La Virginia project. In Chihuahua, Consolidated Zinc identified widespread Au with high-grade potential at its Plomosas project. In Sinaloa, Oroco filed a revised technical report on its Santo Tomas project. In Jalisco, GoGold released results from twelve drill holes collared at its Los Ricos project. In Guanajuato, VanGold announced it is planning its 2020 campaign to advance its El Pinguino project.   ON MINING, Consolidated Zinc suspended operation since April 6, 2020 at its Plomosas mine in Chihuahua due to the COVID-19 pandemic and expects to restart activities on varying dates from May 01 to May 31, based on the pandemic status in their location. Gold Resource reported Q1, 2020 production results from its El Aguila mine in Oaxaca.  Premier Gold reported Q1, 2020 production results from its Mercedes mine in Sonora. Santacruz Silver suspended operations at its Zimapan mine in Hidalgo due to COVID-19 pandemic. ON FINANCING, Aloro reported the cancelation of its previously announced non-brokered private placement (Los Venados, Sonora). Golden Minerals entered into a definitive agreement with some investors to raise approximately $3M (Velardeña project, Durango). One World Lithium announced a non-brokered private placement for gross proceeds of up to $1M (Salar del Diablo project, Baja California Norte). SilverCrest closed a non-brokered private placement with SSR Mining for gross proceeds of CAD $27M (Las Chispas, Son). SSR Mining secured CAD $0.5M gain from exercise of Silver Crest equity participation right. Consolidated Zinc announced its plan to raise funds for approximately $1.7M.  ON RESOURCES AND DEVELOPMENT, Capstone released results from five infill and twenty two step-out drill holes collared at its Cozamin mine in Zacatecas. GR Silver announced historical drilling results from its Plomosas Silver project in Sinaloa. Consolidated Zinc reported high-grade drilling and channel sample results as part of its inferred to indicated category conversion resources at its Plomosas mine in Chihuahua. Prime Mining announced results from new surface trenches and road cuts on its Los Reyes project in Sinaloa. ON DEALS AND CORPORATE ISSUES, One World Lithium renewed the agreement with its IR consulting firm and granted them with stock options.  Excellon announced the acquisition of Otis Gold (Platosas mine, Durango). Argonaut and Alio announced its plan to merge and create a diversified intermediate producer in North America (El Castillo mine, Durango). Great Panther announced changes to its board of directors and senior management team (Topia mine, Durango). ON SOCIAL RESPONSIBILITY, Argonaut Gold implemented a sanitation campaign in public spaces, local businesses, offices, homes and streets in the La Colorada community, in Sonora. Bylsa Drilling and SilverCrest provided support and raised awareness in the Rio Sonora community about the importance of being aware and taking the necessary measures to prevent the spread of COVID-19. Esperanza Silver delivered pantries to local communities and protection equipment to doctors and nurses in Cuernavaca and Temixco communities in Morelos state. In Zacatecas, two new water wells were put into operation with resources from the Mining Fund. Minera Peñasquito donated supplies to local hospitals where it is operating and delivered 1,000 pantries in Mazapil to adults over 60 years of age, pregnant women and people with disabilities from 25 communities neighboring their mining operation.  Minera San Xavier (New Gold Inc.) continued the donations of medical material In the face of the health emergency caused by the COVID-19 pandemic. Orbia (former Mexichem) announced that it will donate 50,000 inhalers to the Mexican Institute of Social Security (IMSS), in the face of the health emergency caused by the COVID-19. Grupo México donated MXP $1.3M and equipment for Red Cross rescuers of Hermosillo, Sonora to face the health contingency experienced in the state. Pan American donated 900 pantries to the local communities around its La Colorada and Dolores mines, located in Zacatecas and Chihuahua respectively.

ON MEXICO ISSUES

  • The Mexican Federal Government, ordered an extension of the suspension of non-essential activities in Mexico until May 30, 2020 to combat the spread of the COVID-19 virus. The directive provides for a potential re-start of operations following May 18, 2020 for operations located in municipalities exhibiting low, or no, cases of COVID-19. Mining companies operating in Mexico are aligned with this decree and will be evaluating zones with the least COVID-19 impact for potential earlier start-up.
  • The Mexican Mining Chamber, announced that their affiliated firms have jointed to fight together against the COVID-19 pandemic. The mining industry has implemented very strict Health and Prevention Protocols in each of its operations since the declaration of the pandemic by the World Health Organization (WHO). The companies affiliated to the Mining Chamber of Mexico have communicated to the authorities that if they allowed continuity they would be unable to operate with less than 50% of the personnel in the field, under the health conditions dictated by the national authorities and applied by international good practices. Mining reaffirms its commitment to the more than 690 communities that host its operations, by implementing joint actions for the care and well-being of its inhabitants and collaborators. 110 joint actions have been carried out with authorities.
  • The Secretary of Economic Development of the State of Colima, requested the release of the Mining Fund to face the contingency caused by the CIVID-19 pandemic and strengthens companies to retain jobs. During the dialogue, the progress made on the commitments made by the State Government in the first extraordinary session was also announced, including tax benefit packages, financial support to companies and the implementation of the Emergent Food Assistance Program.
  • The Government of Mexico, ordered to paralyze the mining sector from March 30 to May 30, not considering it an essential activity. However, mining companies are working to bring health to the regions where they operate. On April 20, the Mining Chamber of Mexico(CAMIMEX) issued a report on the actions in favor of public health undertaken by 29 mining groups affiliated with the Chamber, which they represent 85% of the national mining production and generate around 379,000 direct jobs. Likewise, these mining companies have 182 paramedics, 123 doctors and 74 nurses available to the mining communities, and have a presence in 212 municipalities in Mexico, where they operate. 442 medical units, have 3,362 beds for hospital care, and have supported 10,657 people. “The mining industry reaffirms its commitment to Mexico by being essential as a supplier of raw materials for industrial chains that produce food, medicine, equipment and medical tools, telecommunications, chemicals, among others”, declared Although the mining sector has always supported health of its collaborators and neighboring communities, today, due to the pandemic coronavirus, mining companies make an extra effort to help Mexican society face this health crisis.
  • The Secretary of Tax Administration (SAT) owes USD $1B in VAT to mining companies operating in Mexico. According to the president of CAMIMEX, it is estimated that “in our sector, close to a billion dollars of VAT have been accumulated that the authority has not returned, which has put the flow of several of them at risk.” This is in addition to the economic consequences of social distancing measures and the cessation of non-essential activities, including mining.
  • A senator of the official MORENA party, has asked to the Senate board of directors to consider mining as an essential activity. He promotes to reactivate the mining sector to counteract the economic and social damages caused by the COVID-19 pandemic.

ON EXPLORATION

  • Riverside Resources Inc., defined high-grade gold targets and received drill permits for its Los Cuarentas project in Sonora. The rock-chip sampling returned anomalous Au > 0.2 g/t on 30% of the samples, with high- grade Au samples including 18 g/t, 12.3g/t, 3 g/t, and 3 g/t.  It also identified three new prospective structures: El Sombrerito, defined by a series of old workings;  El Sombrero Norte, mostly covered  by post-mineral andesites; and Rosalia Norte, defined by  steam heated alteration mineralogy and the presence of silicified rhyolite dikes. Riverside announced that it has received the drill permits from the Sonoran Environmental Agency to support further exploration and drilling at its project.
  • Silver Viper Minerals Corp., released results from seven drill holes collared at its La Virginia project in Sonora. Significant drill intersections were encountered in hole LV20-224 with 3.55 g/t Au and 80 g/t Ag over a true width (TW) of 5.20m, including 8.31 g/t Au and 453 g/t Ag over a TW of 0.74m, including 14.4 g/t Au and 12 g/t Ag over a TW of 0.74m, and 0.56 g/t Au and 21 g/t Ag over a TW of 1.11m; and hole LV20-229 with 0.3 g/t Au and 22 g/t Ag over a TW of 4.55m, and 1.27 g/t Au and 106 g/t Ag over a TW of 0.33m, and 0.84 g/t Au and 13 g/t Ag over 11.05m, including 10.9 g/t Au and 12 g/t Ag over a TW of 0.65m, and 2.47 g/t Au and 65 g/t Ag over a TW of 1.95m, including 5.16 g/t Au and 31 g/t Ag over 0.65m, and 16.8 g/t Au and 31 g/t Ag over a TW of 0.98m, including 43.7 g/t Au and 40 g/t Ag over a TW of 0.33m, including 6.12 g/t Au and 31 g/t Ag over a TW of 00.33m, and 2.73 g/t Au and 49 g/t Ag over a TW of 0.33m. Currently, al, field activities were paused and drill equipment is stored on site awaiting a restart order.
  • Consolidated Zinc Limited, identified widespread Au with high-grade potential at its Plomosas project. During a reconnaissance sampling. Highlighted rock chip results from the La Chona and Enrique areas include 6.21 g/t Au and 8 g/t Ag on a gossan, 4.75 g/t Au and 8 g/t Ag, 3.32 g/t Au and 6 g/t Ag, and 2.32 and 6 g/t Ag on limestone/quartz veining, and 1.45 g/t Au, 6 g/t Ag, and 0.64% Cu and 0.82 g/t Au, 3 g/t Ag, and 0.60% Cu on limestone/Fe-Cu Ox. Additionally, mapping has identified mineralized structures to the north of La Chona and Enrique vein systems, related to a large structural lineament. Results from this program are encouraging and further exploration is planned to develop the interpretation of the mineralized systems. Exploration will continue to focus on the La Chona-Enrique system and along the extensions that occur in the northwest.
  • Oroco Resource Corp., filed a revised technical report on the core concession of its Santo Tomas project in Sinaloa. Key revisions focused on the format and cautionary parameters around the disclosure of historical mineral resource estimates.
  • GoGold Resources Inc., released results from twelve drill holes collared at its Los Ricos project in Jalisco. Significant results were encountered in holes LRGG-20-132 with 0.41 g/t Au and 80 g7t Ag (1.48 g/t AuEq or 111 g/t AgEq) over a width of 49.4m, including 5.42 g/t Au and 865 g/t Ag (16.95 g/t AuEq or 1,271 g/t AgEq) over a width of 3m; and hole LRGG-20-135 with 1.06 g/t Au and 133 g/t Ag (2.82 g/t AuEq or 212 g/t AgEq) over a width of 22.6m, including 1.29 g/t Au and 200 g/t Ag (3.96 g/t AuEq or 297 g/t AgEq) over a width of 11.3m. Drilling at the Los Ricos projects is temporarily suspended due to COVID-19 to ensure the safety of the Company’s employees, contractors, and surrounding communities, in compliance with the Mexican Federal government’s mandate that all non-essential business temporarily suspend activities.
  • VanGold Mining Corp., announced it is planning its 2020 campaign to advance its El Pinguino project in Guanajuato. The Company is actively engaged with three separate initiatives: processing a substantial bulk sample through a local mill, making accessible an additional 30 meters of vertical distance at the bottom of the El Pinguico shaft, and developing a comprehensive drill plan to be initiated in late summer/early fall.

ON MINING

  • Consolidated Zinc Limited, suspended operation at its Plomosas mine in Chihuahua due to the COVID-19 pandemic and expects to restart activities on varying dates from May 01 to May 31, based on the pandemic status in their location. During the enforced closure of the mine and plant since the 6 April 2020 essential services have repaired key equipment, replaced pumps, completed overhauls on generated power supply equipment and maintained e ready to operate when the Mexican Government allows a return to work.
  • Gold Resource Corporation, reported Q1 2020 production results from its El Aguila mine in Oaxaca. It produced 6,450 Oz Au, 402.5K Oz Ag, 1.1M Lb Cu, 5.6M Lb Pb, and 123.1M Lb Zn.
  • Premier Gold Mines Limited, reported Q1 2020 production results from its Mercedes mine in Sonora. It produced 11,587 Oz Au for the period. The production was impacted by the COVID-19 pandemic. The mine was placed into care and maintenance pursuant to the decree from the Mexican Federal Government which took effect March 30, 2020.
  • Santacruz Silver Mining Ltd., suspended operations at its Zimapan mine in Hidalgo until April 30. Subject to government regulations and other health expert input, activities are expected to re-commence on or about May 1, 2020 or at such other date as mandated by Mexican authorities.

ON FINANCING

  • Aloro Mining Corp., reported the cancelation of its previously announced non-brokered private placement due to COVID-19 pandemic and market conditions (Los Venados project, Sonora).
  • Golden Minerals Company, entered into a definitive agreement with some investors to raise funds for approximately $3M. Gross proceeds will be used to advance its Rodeo and Velardeña properties in Durango.
  • One World Lithium, announced a non-brokered private placement for gross proceeds of up to $1M. Gross proceeds will be used to conduct a drilling program at its Salar del Diablo project, Baja California Norte).
  • SilverCrest Metals Inc., closed a non-brokered private placement with SSR Mining for gross proceeds of CAD $27M. Net proceeds will be used to advance its Las Chispas project in Sonora. With this financing, SilverCrest makes a cash balance of CAD $234M in its treasury. In turn, SSR Mining entered into a transaction for resale of the common shares to a corporation beneficially controlled by Eric Sprott.
  • RSS Mining, secured a gain of CAD $0.5M from the exercise of some common shares of SilverCrest to a third party beneficially controlled by Eric Sprott.
  • Consolidated Zinc Limited, announced its plan to raise gross proceeds for approximately $1.7M. Gross proceeds will be used for the exploration of Au prospects at its Plomosas mine in Chihuahua, to repay unsecured loans, and for working capital.

ON RESOURCES AND DEVELOPMENT

  • Capstone Mining Corp., released results from five infill and twenty two step-out drill holes collared at its Cozamin mine in Zacatecas. To date, 177 holes of the 200 program have been completed. The most significant drill intersections were encountered in hole CG-20-S471 with 7.58% Cu, 0.26% Zn, 0.01% Pb, and 113 g/t Ag over a true width (TW) of 5.1m, including 9.61% Cu, 0.32% Zn, 0.01% Pb, and 141 g/t Ag over a TW of 3.7m; hole CG-20-S473 with 5.16% Cu, 0.15% Zn, and 92 g/t Ag over a TW of 5.2m, including 7.38% Cu, 0.21% Zn, and 131 g/t Ag over a TW of 3.4m; hole SG-20-S466 with 3.70% Cu, 0.12% Zn, and 64 g/t Ag over a TW of 7.3m, including 6.16% Cu, 0.19% Zn, and 105 g/t Ag over a TW of 2.9m; hole CG-20-S476 with 5.94% Cu, 0.18% Zn, and 101 g/t Ag over a TW of 3.2m; and hole CG-20-S470 with 4.87% Cu, 0.23% Zn, and 131 g/t Ag over a TW of 16.7m, including 6.95% Cu, 0.40% Zn, and 213 g/t Ag over a TW of 7.2m.
  • GR Silver Mining Ltd., announced historical drilling results from its Plomosas silver project in Sinaloa. The most significant drill results were in hole SD-45 with 26.9 g/t Au, 44 g/t Ag, 1.2% Zn, and 0.1% Pb over a true width (TW) of 1.5m, and 4.7 g/t Au, 12 g/t Ag, 0.5% Zn, and 0.1% Pb over a TW of 12.2m; hole PLI17-01 with 1.7 g/t Au, 7 g/t Ag, 1.0% Zn, and 1.3% Pb over a TW of 18m, including 11.9 g/t Au, 22 g/t Ag, 0.1% Zn, and 0.2% Pb over a TW of 2.1m; and hole SD-10 with 0.8 g/t Au, 26 g/t Ag, 4.8% Zn, and 6.0% Pb over a TW of 50.6m, including 1.9 g/t Au, 65 g/t Ag, 15.7% Zn, and 15.5% Pb over a TW of 13.4m.
  • Consolidated Zinc Limited, reported high-grade channel samples and drilling results as part of its inferred to indicated category conversion resources at its Plomosas mine in Chihuahua. Significant drilling intersections were encountered in hole LV7065 with 24.8% Zn, 8.3% Pb, and 69 g/t Ag over a width of 3.3m; hole LV8023 with 14.2% Zn, 5.4% Pb, and 49 g/t Ag over a width of 5.30m; and hole LV 8025 with 22.5% Zn, 7.5% Pb, and 36 g/t Ag over a width of 3.5m. In addition, 44 channel samples were taken perpendicular to bedding at 2 to 3 m spacing for a total of 97 samples. Significant assays were LV913006 with 43% Zn, 13.5% Pb, and 83 g/t Ag over a true width (TW) of 2.2m; LV913012 with 36.6% Zn, 20.4% Pb, and 139 g/t Ag over a TW of 1.8m; LV907006 with 36.4% Zn, 19.4% Pb, and 80 g87t Ag over a TW of 1.9m; LV907005 with 35.2% Zn, 19.9% Pb, and 80 g7t Ag over a TW of 1.9m; LV907009 with 34.1% Zn, 28% Pb, and 80 g/t Ag over a TW of 1.8m; LV907010 with 32.7% Zn, 23.5% Pb, and 99 g/t Ag over a TW of 1m; and LV913008 with 31.9% Zn, 23.7% Pb, and 92 g/t Ag over a TW of 2.5m.
  • Prime Mining Corp., announced results from new surface trenches and road cuts on its Los Reyes project in Sinaloa. The company will integrate the results into the new resource model. Highlights of the surface trenching sampling are in GW-3750E with 0.83 g/t Au and 20 g/t Ag over 12m; GW-3720E with 0.68 g/t Au and 20 g/t Ag over 4.5m; and GW-3650E with 0.51 g/t Au and 14 g/t Ag over 1.5m. A highlight of the road cut sampling is GW-R51 with 0.49 g7t Au and 22 g/t Ag over 19.5m. The Guadalupe West deposit has been modeled using the previous drilling along with some new trenching and road cut sample data and a pit constrained resource has been estimated (see below table):

ON DEALS AND CORPORATE ISSUES

  • One World Lithium, renewed the agreement with its IR consulting firm and granted them with stock options. It also granted incentive stock options to three consultants of the company to purchase up to 1.1M common shares at a price of $ 0.01 per common share (Salar del Diablo project, Baja California Norte).
  • Excellon Resources Inc., received final court approval of business combination and announced the acquisition of all of the issued and outstanding common shares of Otis Gold Corp. Under the terms of the Arrangement, Otis shareholders will be entitled to receive 0.23 common shares of Excellon in exchange for each common share of Otis held. The goal is to increase the company precious metals exposure from 50% to 90%.
  • Argonaut Gold , and Alio Gold Inc., announced its plan to merge and create a diversified intermediate producer in North America. Under the terms of the Arrangement Agreement, all of the Alio issued and outstanding common shares will be exchanged on the basis of 0.67 of an Argonaut common share per each Alio share (El Castillo mine, Durango).
  • Great Panther Mining limited, announced changes to its board of directors and senior management team (Topia mine, Durango).

ON SOCIAL RESPONSIBILITY

  • Argonaut Gold Inc., implemented a sanitation campaign in public spaces, local businesses, offices, homes and streets in the La Colorada community, in Sonora to prevent the spread of the COVID-19 virus. The mining company, in accordance with federal and state decrees, maintains the temporary closure of its operation and will continue with this emerging program before COVID-19 with other direct social support for the population.
  • Bylsa Drilling and SilverCrest Metals Inc., provided support and raised awareness in the Rio Sonora community about the importance of being aware and taking the necessary measures to prevent the spread of COVID-19. At strategic points in the communities, companies also provided different supplies in the region, including thousands of liters of antibacterial gel, chlorine, and soap powder to disinfect and reduce the impact of COVID-19. The companies also support the elaboration of mouth covers by women from the community, and facilitation of the materials required for their preparation. Another important task was to clean roads to have quick and safe access in case of emergency.
  • Esperanza Silver SA de CV (Alamos Gold Inc.), delivered pantries to families in the communities of Tetlama and Milpillas in the Municipality of Temixco and protection equipment to doctors and nurses in Cuernavaca and Temixco municipalities in Morelos state. The company delivered 600 KN95 masks and 1,200 pairs of gloves.
  • In Zacatecas state, two new water wells were put in operation with resources from the Mining fund. With a contribution of 2.5M liters of water per day, one of the wells will beneficiate 18,000 people. The second well will provide 970K liters of water daily for the benefit of hundreds of families in the most populated area of ​​Guadalupe.
  • Minera Peñasquito, donates 660 boxes, 50 pairs of disposable gloves, 3,600 mouth covers, 3,700 disposable gowns, 4,350 N95 respirators and 66 gallons of antibacterial gel, in five medical instances in the area of ​​influence from Peñasquito, such as the San Juan de Los Cedros UMR, the Salaverna UMR, the Mazapil Clinic, the IMSS Hospital of Concepción del Oro and the Sanitary Jurisdiction 7. The company also donated 1,000 pantries in Mazapil to adults over 60 years of age, pregnant women and people with disabilities from 25 communities neighboring their mining operation. This action aims to support the population of the communities surrounding the mining operation, but above all, create conditions so that the population does not leave their homes and can have the possibilities and follow the recommendations of the health authorities to reduce the contagion by COVID-19.
  • Minera San Xavier (New Gold Inc.), continued the donations of medical material In the face of the health emergency caused by the COVID-19 pandemic. The donation consisted of tyvek type protection coveralls, with complete superior barrier protection, breathability and durability and N95 respirators, masks with a level of filtration recommended by the World Health Organization, with the aim that they are destined for the medical and nursing personnel who work and who will attend cases of COVID 19 in the local hospital.
  • Orbia (former Mexichem), announced that it will donate 50,000 inhalers to the Mexican Institute of Social Security (IMSS), in the face of the health emergency caused by the COVID-19. The relationship of Orbia with the inhalers that are commonly called ventolins is very close, since with the fluoride that is extracted at the Las Cuevas mine in San Luis Potosi, approximately 80% of inhalers around the world are produced. These devices are essential for those who suffer from respiratory conditions such as asthma and chronic obstructive pulmonary disease.
  • Grupo México , donated MXP $1.3M and 300 personal protective equipment for Red Cross rescuers of Hermosillo, Sonora to face the health contingency experienced in the state. The protective equipment consists of suits, N95 masks and goggles.
  • Pan American Silver Corp., donated 900 pantries to the communities of La Magdalena, Canoas, La Libertad y Sombrerete in the municipality of Chalchihuites Zacatecas, as well as in the community of Arroyo Amplio, a community around of its Dolores mine in Chihuahua. The pantries were delivered to elderly people with disabilities and families from vulnerable sectors. Different actions have been carried out with the communities, such as sanitation at the IMSS, which is open to the community. Donation of antibacterial gel, covers mouths, gloves and basic health check-up.

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, cervantite crystals in jasperoid in a mining prospect in Durango, Mexico.  Photo by Miguel A Heredia.

 

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

Phreatic breccia

By Miguel A Heredia

During the seventh week of the year (February 10th to February 16th, 2020), at least 29 press releases were announced by companies working in Mexico, with seven commenting on Mexican issues, five disclosing deals and corporate issues, five announcing financial rounds, four informing on exploration results, three discussing issues on social responsibility, three reporting on resources and development of their mining projects, and two communicating production results.  ON MEXICO ISSUES, Americas Gold and Silver announced that a group of individuals has illegally blockaded the access to the facilities at its Cosala mine in Sinaloa. Javier Corral, Governor of Chihuahua and Francisco Quiroja, Undersecretary of Mining, installed the Regional Development Committee for Mining Zones in the State of Chihuahua 2020.  Luiz Camargo, Director of Compañía Minera Cuzcatlán (Fortuna Silver) stated that the main challenge of mining is to break the paradigms of old and rudimentary industry, showing that modern mining generates shared growth and benefits in the communities.  Fernando Alanis, President of the Mining Chamber of México declared that the mining industry is lever of social and economic development.  Francisco Quiroga, Undersecretary of Mining, reported that the Mexican Federal Government applied for four Li mining concessions. The Directorate of the Mining Fund, attached to the Ministry of Economy, has organized a workshop in Mexico City to train the presentation of infrastructure projects for mining states and municipalities. BNamericas analyzes the most important studies that will move the threads of key mining projects in Mexico. ON EXPLORATION, In Baja California Norte, One World Lithium applied for a drilling permit to continue the exploration of its Salar del Diablo project.  In Sonora, Silver Viper released drilling results from its El Rubi project, and Tamino Minerals provided an overview on acquisitions and its 2020-2021 exploration expenditure guidance (Amalia project, Sonora).In Zacatecas, Alien commissioned TMC (geophysical company) to carry out a ground IP survey at its Donovan 2 Cu-Au project. ON MINING, Avino reported annual 2019 production results from its Avino mine in Durango and provided an outlook for 2020. Capstone reported Q4, 2019 production and financial results from its Cozamine mine in Zacatecas. ON FINANCING, Hecla announced its intention to offer $475M aggregate of its senior notes due 2028. (San Sebastian mine, Durango). Millrock closed a non-brokered private placement for gross proceeds of $1.5M (Batamote project, Sonora). Premier Gold announced its intention to increase its previously announced offer for gross proceeds of up to $38M (Mercedes mine, Sonora). Santacruz revealed its intention to conduct a non-brokered private placement to raise gross proceeds of up to CAD $3M (Veta Grande mine, Zacatecas). Telson closed a first tranche of its non-brokered private placement for gross proceeds of $1.94M (Campo Morado mine, Guerrero). ON RESOURCES AND DEVELOPMENT, Discovery Metals reported drill results from its Cordero project in Chihuahua. Pan American announced step-out drilling results from its La Colorada project in Zacatecas. Newmont Corporation reported mineral reserves and resources as of December 31, 2019 for its Peñasquito mine in Zacatecas.  ON DEALS AND CORPORATE ISSUES, Mexican Gold announced completion of continuance and name change (Las Minas, Veracruz). Mithril reported results of its general meeting of shareholders (Copalquin project, Durango). Oroco announced its option agreement with Altamura Copper Corp., and the Altamura shareholders (Santo Tomás project, Sinaloa). One World Lithium announced the appointment of its VP, Corporate Development. The company granted to its VP, Corporate Development and a consultant, incentive stock option to acquire up to 500K and 200K common shares respectively at a price of $0.10 per share (Salar del Diablo project, Baja California Norte). Endeavour Silver announced the appointment of its Director and Project Development to oversee the development of its Terronera, Jalisco and Parral, Chihuahua mine projects. ON SOCIAL RESPONSIBILITY, Minera Peñasquito and the Cedros community, in Zacatecas, reached an agreement to ensure the water supply for the entire community for a period of 30 years. Minera Penmont (Fresnillo plc) and the Metallurgical Mining Trade Union “FRENTE” inaugurated the sports facilities in Caborca, Sonora. The Institute for Training for Work (Icatson) will train workers in the mining sector in Sonora to raise the productivity of the mining companies in the state.

ON MEXICO ISSUES

  • American Gold and Silver Corporation, announced that a group of individuals, including a small minority of the Company’s unionized workers have illegally blockaded the access to the facilities at its Cosala mine in Sinaloa. After weeks of interruptions of the mining activities, the company is evaluating the total and indefinite closure of the mine and its processing plant.
  • Javier Corral, Governor of Chihuahua, and the Undersecretary of Mining, Francisco Quiroga, installed the Regional Development Committee for Mining Zones in the State of Chihuahua 2020. Javier Corral indicated that with the new federal administration the operation of the Mining Fund changed, however, the Committee was installed because there are pending projects of 2017 and 2018, even with resources payable to municipalities. He also informed that from the proceeds of the Mining Fund from 2014 to 2017, MXP $1,281M was allocated to Chihuahua, but he still has not received another MXP $49M.
  • Luiz Camargo, Director of Compañía Minera Cuzcatlán (Fortuna Silver), stated that the main challenge of mining is to break the paradigms of old and rudimentary industry, showing that modern mining generates shared growth and benefits in the communities. He considered that mining should be understood as a sector with various actors, such as government, community and company, with common objectives.
  • Fernando Alanis, President of the Mining Chamber of Mexico, declared that the mining industry is lever of social and economic development.
  • Francisco Quiroga, Undersecretary of Mining, reported that the Mexican Federal Government applied for four Li mining concessions for the Geological Survey of Mexico (SGM). Two of the concessions are in Sonora, one in Jalisco and one in Puebla.
  • The Directorate of the Mining Fund, attached to the Ministry of Economy, has organized a workshop in Mexico City to train the presentation of infrastructure projects for mining states and municipalities. The aims of the workshop are to support federal entities and mining municipalities, sharing with state government officials the experience and lessons learned from the Mining Fund’s work team, in order to expedite the process of integrating files and required documentation to present the projects to the regional committees for approval and then submit the requests of ministers to the technical committee of the Mining Fund trust.
  • BNamericas, analyzes the most important PFS studies that will move the threads of key mining projects in Mexico, whose combined capital expenditure will be around USD $1.3B. It reviews the PFS studies of Media Luna, Guerrero (Torex Gold); the Sonora Li project (Bacanora Lithium-Ganfeng Li); the San Nicolas project, Zacatecas (Teck  Resources); the Las Chispas, Sonora (SilverCrest); and the Terroneras, Jalisco (Endeavour).

ON EXPLORATION

  • One World Lithium Inc., applied for a drilling permit to continue the exploration of its Salar del Diablo project in Baja California Norte. The company expects to receive the approval in the next days and move a skid mounted 4X4 all-terrain rig to drill a third hole 50Km south of the DDH-2. One World Lithium is working with a technology development company to test a new process to extract Li from a brine stream at near zero greenhouse gasses emission.
  • Silver Viper Minerals Corp., announced drilling results from four holes collared at its El Rubi project, and expanded the mineralized structure 250m along strike. Drilling results indicate the presence of adjacent parallel mineralized structures. The El Rubi target is open to the north, south, and at depth. Significant interceptions were encountered in hole LV19-212 with 0.68 g/ton Au and 40.3 g/t Ag (1.25 g/t AuEq) over 4m of true width, and 1.85 g/t Au, 20 g/t Ag (2.14 g/t AuEq) over a true width of 3.6m, including 7.03 g/t Au and 45 g/t Ag (7.67 g/t AuEq) over a true width of 0.8m, and a final interval of 3.47 g/t Au and 5 g/t Ag (3.54 g/t AuEq) over a true width of 0.8m; hole LV20-213 with 0.84 g/t Au and 36 g/t Ag (1.37 g/t AuEq) over a true width of 8.6m, including 2.52 g/t Au and 71 g/t Ag (3.53 g/t AuEq) over a true width of 0.6m; hole LV20-214 with 1.8 g/t Au and 107 g/t Ag (3.34 g/t AuEq) over a true width of 3m, including 3.9 g/t Au and 187 g/t Ag (6.57 g/t AuEq) over a true width of 0.8m; and hole LV20-215 with 2.18 g/t Au and 147 g/t Ag (4.27 g/t AuEq) over a true width of 1.8m, and 14.4 g/t Au and 86 g/t Ag (15.6 g/t AuEq) over a true width of 6.3m, including 196.3 g/t Au and 984 g/t Ag (210.4 g/t AuEq) over a true width of 0.45m.
  • Tamino Minerals Inc., provided an overview on acquisitions and 2020-2021 exploration expenditure guidance. Its strategy is to identify and acquire high-quality, advanced-stage exploration projects and discover early-stage opportunities that can be strategically tested and quickly progressed to key decision points. Tamino plans to spend in exploration $5M in the period 2020-2021: $2M in the Amalia project, Sonora, $1.2M in El Volcan project, Sonora, and $1.8M on acquisitions and small exploration projects.
  • Alien Metals Ltd., commissioned TMC  Exploración S de RL de CV de México to carry out a ground IP survey at its Donovan 2 Cu-Au project in Zacatecas. Aim of this IP survey is to generate high-priority drill targets.

ON MINING

  • Avino Silver & Gold Mines Ltd., announced annual 2019 production results from its Avino mine in Durango and provided an outlook for 2020. It produced 958.8K Oz Ag, 6,912 Oz Au, and 4.97M Lb Cu (2.39M Oz AgEq) from its Avino mine, San Gonzalo mine, and the Historic Above Ground Stockpiles. The company also provided an outlook for 2020 and expects to spend a total of USD $7-8M. It plans to drill 11,500m at its Avino mine to explore Avino, Avino West, the Santiago Vein, and La Potosina targets, and make some plant improvements.
  • Capstone Mining Corp., reported Q4, 2019 production and financial results from its Cozamine mine in Zacatecas. It milled 294,000 tonnes of 1.53% Cu, 1.52% Zn, and 48 g/t Ag, recovering 94.6%, 70.2%, and 78.7% respectively to produce 9.4M Lb Cu, 4.5M Lb Zn, and 365K Oz Ag, at a cash cost of USD $0.91 per Lb of payable Cu produced. Capstone reported USD $29.5M of revenues and an EBIDTA of USDS $11M. Annual 2019 production was 1,146,000 tonnes of 1.50% Cu, 1.07% Zn, and 47 g/t Ag, recovering 94.4%, 68.2%, and 77.7% respectively, to produce 35.8M Lb Cu, 18.5M Lb Zn, and 1.34M Oz Ag at a cash cost of USD $0.90 per Lb of payable Cu produced. Capstone reported USD $118.4M of revenues and an EBIDTA of USD $52M for the full year 2019.

ON FINANCING

  • Hecla Mining Company, announced its intention to offer $475M aggregate of its senior notes due 2028. The Company intends to use the net proceeds from the offering, together with cash on hand, to redeem all of its outstanding 6.875% senior notes due 2021 and to pay fees and expenses in connection with the offering and the redemption (San Sebastian mine, Durango).
  • Millrock Resources Inc., closed a non-brokered private placement for gross proceeds of $1.5M. Net proceeds will be used to advance exploration of its projects, for generation of new projects, for marketing of its projects, and for general corporate purposes (Batamote project, Sonora).
  • Premier Gold Mines Limited, announced its plan to increase the size of its previously announced offer to raise gross proceeds of up to $38M. Part of the gross proceeds will be used for the development, expansion, and working capital requirements of its Mercedes mine in Sonora.
  • Santacruz Silver Mining Ltd., revealed its intention to conduct, in one or more tranches, a non-brokered private placement to raise gross proceeds of up to CAD $3M.Net proceeds will be used for general working capital and corporate purposes (Veta Grande mine, Zacatecas).
  • Telson Mining Corporation, closed a first tranche of a non-brokered private placement for gross proceeds of $1.94M

ON RESOURCES AND DEVELOPMENT

  •  Discovery Metals Corp., reported drilling results from its Cordero project in Chihuahua. These results are part of the phase 1 of 30,000-35,000m programmed to define and delineate areas of higher grade mineralization within the existing mineral resource estimate. Significant results were encountered in hole C19-304 with 0.38 g/t Au, 74 g/t Ag, 1.1% Pb, and 1.1% Zn (188 g/t AgEq) over 105.90m, including 0.41 g/t Au, 104 g/t Ag, 1.5% Pb, and 1.4% Zn (250 g/t AgEq) over 26m; including 0.42 g/t Au, 78 g/t Ag, 1.1% Pb, and 0.9% Zn over 30.6m; and including 0.52 g/t Au, 110 g/t Ag, 1.8% Pb, and 2.1% Zn over 21.1m; hole C19-305 with 0.05 g/t Au, 74 g/t Ag, 0.5% Pb, and 0.5% Zn (113 g/t AgEq) over 65.0m, including 0.12 g/t Au, 122 g/t Ag, 1.6% Pb, and 1.5% Zn (249 g/t AgEq) over 16m; and hole C19-297 with 0.21 g/t Au, 522 g/t Ag, 6.6% Pb, and 18.3% Zn (1,533 g/t AgEq) over 1.1m and 0.09 g/t Au, 931 g/t Ag, 6.0% Pb, and 10.1% Zn (1,569 g/t AgEq) over 0.6m. To date, 23 holes totaling 8,214m have been collared at Cordero project, with pending results of 15 holes yet.
  • Pan American Silver Corp., announced results from 14 step-out drilling holes collared at its la Colorada Skarn deposit in Zacatecas. Drill highlights include hole U-88-19 with 60 g/t Ag, 0.17% Cu, 2.7% Pb, and 4.5% Zn over 270.9m, including 85 g/t Ag, 0.18% Cu, 3.9% Pb, and 6.4% Zn; hole U-105-19 with 30 g/t Ag, 0.15% Cu, 2.4% Pb, and 3.5% Zn over 192.5m, including 29 g/t Ag, 0.14% Cu, 3% Pb, and 4.5% Zn over 105.6m; hole D-30-03-19 with 35 g/t Ag, 0.2% Cu, 2% Pb, and 3.3% Zn over 76.1m; hole D-30-05-19 with 51 g/t Ag, 0.28% Cu, 1.8% Pb, and 4.6% Zn over 62.5m; hole D-81-01-19 with 54 g/t Ag, 1.15% Cu, 0.4% Pb, and 2.5% Zn over 32.9m, and 78 g/t Ag, 0.5% Cu, 0.3% Pb, and 3.8% Zn over 75.9m, and 133 g/t Ag, 0.88% Cu, 0.25% Pb, and 3.4% Zn over 19.2m; hole U-87-19 with 33 g/t Ag, 0.09% Cu, 2.1% Pb, and 4.95% Zn over 47.2m; and hole S-81-19 with 54 g/t Ag, 0.05% Cu, 2% Pb, and 10.3% Zn over 24.5m, including 43 g/t Ag, 0.16% Cu, 1% Pb, and 3.5% Zn over 28.8m. Since the discovery of the La Colorada Skarn Deposit in 2018, Pan American has drilled approximately 60,000m. In 2020, the company plans to invest USD $16-18M on 44,000m of infill and expansion drilling of the current resource estimate and early stage engineering and metallurgical testing.
  • Newmont Corporation, reported mineral reserves and resources as of December 31, 2019 for its Peñasquito mine in Zacatecas. Proven reserves are 109.7M of tonnes of 0.63 g/t Au and 38 g/t Ag for a total of 2.22M Oz Au and 134.4M Oz Ag contained. Probable reserves are 331.8M tonnes of 0.56 g/t Au and 32 g/t Ag for a total of 5.86M Oz Au and 337M Oz Ag contained. Proven + Probable reserves are 441.5M tonnes of 0.57 g/t Au and 33 g/t Ag for a total of 8.08M Oz Au and 471.36M Oz Ag contained. Newmont also reported measured resources of 37.3M tonnes of 0.25 g/t Ag and 27 g/t Ag for a total of 300K Oz Au and 32M Oz Ag contained. Indicated resources are 304M tonnes of 0.25 g/t Au and 25 g/t Ag for a total of 2.44M Oz Au and 240.17M Oz Ag contained. Measured + Indicated resources are 341.3M tonnes of 0.25 g/t Au and 25 g/t Ag for a total of 2.74M Oz Au and 272.17M Oz Ag contained. Inferred resources are 193.6M tonnes of 0.34 g/t Au and 26 g/t Ag for a total of 2.09M Oz Au and 161.6M Oz Ag contained. For base metals, Newmont reported proven reserves of 108.1M tonnes of 0.93% Zn and 0.39% Pb for a total of 2.24B Lb Zn and 896M Lb Pb contained. Probable reserves are 330.5M tonnes of 0.71% Zn and 0.32% Pb for a total of 5.29B Lb Zn and 2.17B Lb Pb contained. Proven + probable reserves are 438.6M tonnes of 0.77% Zn and 0.34% Pb for a total of 7.53B Lb Zn and 3.07B Lb Pb contained. It also reported measured resources of 36M tonnes of 0.64% Zn and 0.28% Pb for a total of 515.2M Lb Zn and 224M Lb Pb contained. Indicated resources are 293.1M tonnes of 0.55% Zn and 0.24% Pb for a total of 3.63B Lb Zn and 1.57B Lb Pb. Measured + Indicated resources are 438.1M tonnes of 0.77% Zn and 0.34% Pb for a total of 7.53B Lb Zn and 3.07B Lb Pb. Inferred resources are 188.6M tonnes of 0.5% Zn and 0.27% Pb for a total of 2.13B Lb Zn and 1.14B Lb Pb. (Resources are reported exclusive of reserves.)

ON DEALS AND CORPORATE ISSUES

  • Mexican Gold Corp., reported that it has completed its announced continuation of its incorporation from Ontario to British Columbia and its name change to Mexican Gold Mining Corporation (Las Minas project, Veracruz).
  • Mithril Resources Limited, reported results of its general meeting of shareholders. All resolutions were put to vote and were passed (Copalquin project, Durango).
  • Oroco Resource Corp., announced its option agreement with Altamura Copper Corp., and Altamura shareholders. The exercise of this option will give Oroco a controlling interest in the Santo Tomás project in Sinaloa. Oroco is moving to the next phase of its development plan to progress the property to a NI 43-101 resource.
  • Bacanora Lithium plc, announced results from its annual general meeting of shareholders (Bacanora project, Sonora).
  • One World Lithium, announced the appointment of its VP, Corporate Development. The company granted to its VP, Corporate Development and a consultant, incentive stock option to acquire up to 500K and 200K common shares respectively at a price of $0.10 per share (Salar del Diablo project, Baja California Norte).
  • Endeavour Silver , announced the appointment of its Director and Project Development to oversee the development of its Terronera, Jalisco and Parral, Chihuahua mine projects. It also announced the resignation of its VP New Projects.

 ON SOCIAL RESPONSIBILITY

  • Minera Peñasquito and the Cedros community in Zacatecas, reached an agreement to ensure the water supply for the entire community for a period of 30 years. The plan includes wells, drinking water and the commitment by the municipality to the operation, since both the public system and the infrastructure and distribution networks belong to it. The plan had been recognized by the authority, accepted and valued as a contribution to sustainable development for the benefit of the community.
  • Minera Penmont (Fresnillo plc) and the Metallurgical Mining Trade Union “FRENTE” inaugurated the sports facilities in Caborca, Sonora, which will benefit more than 2,000 people, because they provide spaces for family life and the promotion of healthy lifestyles.
  • The Institute for Training for Work (Ictason), will train workers in the mining sector and their families to raise the productivity of the mining companies in the state.

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 phreatic breccia in an epithermal hot spring prospect in Guanajuato, Mexico.  Photo by Miguel A Heredia.

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

 

Boiling texture in an epithermal quartz vein

By Miguel A Heredia

During the third week of the year (January 13th to January 19th, 2020), at least 27 press releases were announced by companies working in Mexico, with eight communicating production results, seven reporting on resources and developments, five informing on exploration results, two disclosing deals and corporate issues, two discussing issues on social responsibility, two commenting on Mexican issues, and one announcing financial rounds.  ON MEXICO ISSUES, The Mexican mining industry, the thirteenth largest in the world, is laying the groundwork for generating more investment in this important development engine. Mining  activity has increased in Tamaulipas, according to the General Directorate of Mines.  ON EXPLORATION, In Sonora, Silver Viper released drilling results from its La Virginia project and Aztec Minerals provided a 2020 outlook for its Cervantes project. In Chihuahua, Radius announced results from the third phase of drilling from its Amalia project. In Sinaloa, Vizsla Resources discovered a new high grade vein at its Panuco project. In Zacatecas, Advance Gold commenced the third phase geophysical survey at its Tabasquena project. ON MINING, Alamos Gold commenced operation at its Cerro Pelon mine in Sonora. Torex announced that it expects to produce between 420K to 480K Oz Au in 2020 (El Limón Guajes, Guerrero). Great Panther, GoGold, McEwen, Fortuna Silver, Avino, and Coeur reported Q4 and full year 2019 production and financial results from their Mexican operations.   ON FINANCING, Minera Alamos closed a private placement with Osisko for gross proceeds of $6M. (Santana project, Sonora). ON RESOURCES AND DEVELOPMENT, Starcore staked two new claims near its San Martin Mine in Querétaro. Prime Mining retained a consulting company to complete an estimate of the Au and Ag resources for its Los Reyes mine in Sinaloa. Capstone presented expansion and infill drilling results from its Cozamine mine in Zacatecas. Torex announced an updated resource estimate for its Media Luna project in Guerrero.  SilverCrest announced it plans to release in-fill and expansion drill results from six areas in Q1, 2020. Minera Alamos commenced construction of its Santana mine in Sonora. Southern Silver reported that metallurgical test work confirmed that a marketable Cu, Pb, Zn concentrate can be produce at its Cerro Las Minitas project in Durango. ON DEALS AND CORPORATE ISSUES, Sonoro Metals granted stock options to certain directors, officers, and consultants (Cerro Caliche project, Sonora). Radius signed a binding option agreement to acquire from a private family an 800 Ha property called Palmillas, which is adjacent to its Amalia project in Chihuahua. ON SOCIAL RESPONSIBILITY, The Mining Fund contributed in the road construction in the municipality of Tepehuanes, Durango. The Peñoles Community Center will give new human development workshop.

ON MEXICO ISSUES

  • The Mexican mining industry, the thirteenth largest in the world, is laying the groundwork for generating more investment in this important development engine. The Ministry of Economy works to have a financing model like the Canadian one. One of the government’s bets is that Mexico, with private investment, be a producer of rechargeable Li batteries for electric cars. José Francisco Quiroga Fernández, the Under Secretariat of Mining said in an interview, that USD $ 100B will be the value of annual Li sales in 2029, according to Bloomberg. 243M tonnes of Li are estimated to be in the Sonora deposits. At the moment that market is worth just over USD $22B; However, according to Bloomberg NEF estimates in 2023 it exceeds USD $40B, in 2025 it will be USD $60B and in 2030, USD $116B, that is to say almost 420% more than the global sales of 2019.
  • Mining activity has increased in Tamaulipas, according to the General Directorate of Mines. The state has 124 mining concessions in 19 of their municipalities. Profits produced by the mineral extraction of Pb, Zn, Cu, Au, Ag, serpentine, and stone aggregates exceed MXP $2,000M per year.

ON EXPLORATION

  • Silver Viper Minerals Corp., announced drilling results for the first three holes of the phase 2 from its Virginia project in Sonora. Significant results were encountered in hole LV19-209 with 3.22 g/t Au and 1,054 g/t Ag (1,280 g/t AgEq) over 1.8m, and other interval with 2.50 g/t Au and 27 g/t Ag (202 g/t AgEq) over 7m, including 5.27 g/t Au and 41 g/t Ag (410 g/t AgEq) over 3m; hole LV19-210 with 1.47 g/t Au and 216 g/t Ag (319 g/t AgEq) over 6m, including 6.32 g/t Au and 1,071 g/t Ag (1,513 g/t AgEq)over 1m; and hole LV19-211 with 13.39 g/t Au and 446 g/t Ag (1,384 g/t AgEq) over 4.5m, including 58.3 g/t Au and 1,923 g/t Ag (6,004 g(t AgEq) over 1m, and other interval with 1.37 g/t Au and 40 g/t Ag (136 g/t AgEq) over 9m. Phase II will consists of 5,000m in approximately 20 holes.
  • Aztec Minerals Corp., provided a 2020 outlook for its Cervantes project in Sonora. It plans to finalize the JV agreement with Kootenay in January 2020, and secure a senior partner to conduct an aggressive exploration program to advance both near surface oxide Au mineralization and deeper porphyry Au-Cu targets.
  • Radius Gold Inc., announced results from the recently completed third phase of drilling from its Amalia project in Chihuahua. Significant results were encountered in hole AM-DD19-18 with 12.5 g/t Au and 2,320 g/t Ag over 1.3m, and 1.4 g/t Au over 13.7m; and hole AM-DD19-19 with 0.5 g/t Au and 22 g/t Ag over 7.4m. Holes AM-DD19-20 and 21 only encountered anomalous Au-Ag values at the San Pedro fault. Radius reported that it has signed a binding agreement to acquire the 800 Ha Palmillas property from a private family which hosts high-grade epithermal Au-Ag mineralization and is adjacent to Amalia project.
  • Vizsla Resources Corp., discovered a new high grade vein at its Panuco property in Sinaloa. This vein consists of crystalline quartz with disseminated argentite and pyrite hosted in a strongly weathered and demagnetized diorite. Sampling on this 500m long vein returned 3.07g/t Au and 312 g/t Ag (557 g/t AgEq over 3.4m; 1.34 g/t Au and 263 g/t Ag (370 g/t AgEq) over 0.7m; and 0.5 g/t Au and 107 g/t Ag (147 g/t AgEq) over 1.1m. Vizsla plans to drill this recently discovered vein in late January/early February as one of the twenty targets that will be drilled throughout 2020.
  • Advance Gold Corp., commenced the third phase geophysical survey at its Tabasquena project in Zacatecas to delineate a new chargeability anomaly identified on the most southerly of the reconnaissance lines from the second phase survey, and to do a long NW-SE line cross cutting all of the previous E-W survey lines to obtain a much deeper penetration. This new survey will consist of nine E-W lines of 1,000m long, with line spacing of 120m, and one line NW-SE of 4,000m long.

ON MINING

  • Alamos Gold Inc., commenced operation at its satellite mine Cerro Pelon, located 3km from its Mulatos mining unit in Sonora. The new open pit mine, whose current life is three years, has a capacity of 4,500 tons per day, has an independent crushing train and the material is deposited in the Mulatos mine yards, taking advantage of the existing mining infrastructure and avoiding more capital costs.
  • Torex Gold Resources Inc., announced that it expects to produce between 420K to 480K Oz Au in 2020, at a total cost per Oz Au sold of USD $640-$670, and AISC of USD $900-$960 per Oz Au sold.
  • Great Panther Mining Limited, reported Q4 and full year 2019 production and financial results from their Mexican operations. At Topia mine, Durango, the company processed in Q4, 2019, 18,854 tonnes with grades of 0.81 g/t Au and 424 g/t Ag for a total of 267 Oz Au, 242.8K Oz Ag, 1.09M Lb Pb, and 1.45M Lb Zn (449.6K Oz AgEq), that brings a total of 79,257 tonnes processed in the full year 2019, with grades of 0.94 g/t Au and 392 g/t Ag for a total of 1,344 Oz Au, 938.6K Oz Ag, 4.39M Lb Pb, and 5.77M Lb Zn (1.78M Oz AgEq). At Guanajuato mine complex, the company processed in Q4, 2019 a total of 48,710 tonnes with grades of 2 g/t Au and 136 g/t Ag for a total of 2,640 Oz Au and 180.5K Oz Ag (394.6K Oz AgEq), that brings a total of 187,610 tonnes processed in the full year 2019 with grades of 2.26 g/t Au and 116 g/t Ag for a total of 11,588 Oz Au and 590.8K Oz Ag (1.5M Oz AgEq).
  • GoGold Resources Inc., announced Q4, 2019 production results from its Parral Tailings project in Chihuahua. The company produced 2,407 Oz Au and 379K Oz Ag (585K Oz AgEq).
  • McEwen Mining Inc., reported that its El Gallo mine in Sinaloa produced in 2019 a total of 16,333Oz AuEq from residual leaching of the heap leach pad.
  • Fortuna Silver Mines Inc., announced Q4 and full year 2019 production results from its San Jose mine in Oaxaca. It processed 273,066 tonnes of 1.5 g/t Au and 249 g/t Ag to produce a total of 12K Oz Au and 2M Oz Ag. In the full year 2019, the company processed 1,068,722 tonnes of 1.57 g/t Au and 252 g/t Ag to produce 48.9K Oz Au and 7.9M Oz Ag.
  • Avino Silver & Gold Mines Ltd., reported Q4, and full year 2019 production results from its Avino mine in Durango, including Avino, San Gonzalo and stockpiles. During the Q4 period, it processed 188,436 tonnes of 0.47 g/t Au, 51 g/t Ag, and 0.43% Cu to produce 2,032 Oz Au, 220.8K Oz Ag, and 1.39M Lb Cu (608.6K Oz AgEq). In the full year 2019, the company processed 789,660 tonnes of 0.41 g/t Au, 54 g/t Ag, and 0.4%Cu to produce 6,912 Oz Au, 958.8 Oz Ag, and 4.97M Lb Cu (2.4M Oz AgEq).
  • Coeur Mining Inc., announced Q4 and full year 2019 production and financial results from its Palmarejo mine in Chihuahua. In the period Q4, it milled 486,779 tonnes of 2.25 g/t Au and 159 g/ Ag for a total of 28.7K Oz Au and 2M Oz Ag at an average realized price per Oz Au and Ag of $1,238 and $17.28 respectively. For the full year 2019, the company milled 1,755,957 tonnes of 2.49 g/t Au and 151 g/t Ag to produce a total of 111.9K Oz Au and 6.76M Oz Ag at an average realized price per Oz Au and Ag of $1,220 and $16.23 respectively.

ON FINANCING

  • Minera Alamos Inc., closed a private placement with Osisko Gold Royalties Ltd., for gross proceeds of $6M. With this, Osisko has increased its shareholding of the company´s common share from 12.3% to 18.7%. Net proceeds will be used for building its Santana mine in Sonora.

ON RESOURCES AND DEVELOPMENT

  •  Starcore International Mines Ltd., staked two new claims near its San Martin Mine in Queretaro with upside potential for exploration and development. These two new claims are located to the west of the current mineral rights of the mine and cover approximately 710 Ha. The company will release an exploration plan for the first part of 2020.
  • Prime Mining Corp., retained a consulting company to complete a 43-101 compliant technical report that includes a n estimate of the Au and Ag resources for its Los Reyes mine in Sinaloa. Prime geologists have prepared a database of 493 historic drill holes to establish a new 43-101 compliant in-pit resource. The company expects to expands the size of the indicated resource presented by the former owner of 380.1K Oz Au at a grade of 1.73 g/t Au and inferred resources of 155.2K Oz Au at a grade of 1.49 g/t Au, and Ag resources of 6.3M indicated Oz Ag at a grade of 29 g/t Ag, and 3.6M inferred Oz Ag at a grade of 35 g/t Ag.
  • Capstone Mining Corp., presented drilling results from 6 expansion holes and 21 infill holes collared at its Cozamin mine in Zacatecas. This brings the total drilled to date to 150 holes of a 200 hole program, aiming to double the current reserve base. Significant drill intercepts were encountered in hole CG-19-S445 (step out) with 5.31% Cu, 0.15% Zn, and 79 g(t Ag over a true width of 6.3m, including 9.8% Cu, 0.26% Zn, and 139 g/t Ag over 2.8m; hole CG-19-S443 (step out) with 4.95% Cu, 0.15% Zn, and 104 g/t Ag; hole CG-19-S436 with 6.13% Cu, 0.24% Zn, and 98 g/t Ag over a true width of 1.7m; hole CG-19-S441(step out) with 3.35% Cu, 0.34% Zn, and 62 g/t Ag over a true width of 5.4m; hole CG-10-S455 (infill) with 7.65% Cu, 0.35%Zn, and 141 g/t Ag over a true width of 5.4m; hole CG-19-S437 (infill) with 1.94% Cu, 0.15% Zn and 45 g/t Ag over a true width of 19.3m, including 5.9% Cu, 0.33% Zn, and 134 g/t Ag over a true width of 2.80m; hole CG-19-S440 (infill) with 8.29% Cu, 0.25%Zn, and 133 g/t Ag over a true width of 4.9m, including 10.75% Cu, 0.32% Zn, and 166 g/t Ag over a true width of 3.4M; and hole CG-19-S444 (infill) with 3.31% Cu, 0.11% Zn, and 82 g/t Ag over a true width of 11.8m, including 7.89% Cu, 0.2%Zn, and 198 g/t Ag over a true width of 3.7m.
  • Torex Gold Resources Inc., announced an updated resource estimate for its Media Luna project in Guerrero. It reported an indicated resource of 12.6M tonnes of 3.27 g/t Au, 38 g/t Ag, and 1.16% Cu for a total of 1.32 M Oz Au, 15.3M Ag, and 322M Lb Cu (2.24M Oz Au Eq at a grade of 5.5 g/t AuEq). Inferred resources are 33.5M tonnes of 2.49 g/t Au, 24 g/t Ag, and 0.93% Cu for a total of 2.68M Oz Au, 25.5M Oz Ag, and 686M Lb Cu (4.56M Oz AuEq at a grade of 4.23 g/t AuEq).
  • SilverCrest Metals Inc., announced it plans to release in Q1, 2020 in-fill and expansion drill results from Babi Sur, Babi Vista Discover, Babicanora Norte, Babicanora, Babicanora FW, and Area 118 Discovery veins. Drill results will be incorporated into the updated resource to be released in the FS in H1, 2020. SilverCrest plans to conduct a 125,000m of exploration drill program focused on expanding measured and indicated resources to be considered for inclusion in the initial reserve estimate with the FS. In anticipation of a positive construction decision based on the FS, and the approval from the government of the change of use of soil permit, the company will commence to construct offices, warehousing, water works, and roads access improvements in H1.
  • Minera Alamos Inc., commenced the construction of its Santana mine in Sonora. It plans to provide construction updates during the 6-8 months construction period. During January and February, the company along with members of the community will begin to prepare the areas designed for the leach pads and holding pods, as well as initiate road construction within the planned mine area.
  • Southern Silver Exploration Corp., announced that the metallurgical tests work at its Cerro Las Minitas project in Durango confirmed that a marketable Cu, Pb, and Zn concentrate can be produce, increasing its value compared with earlier batch testing. These results are highlighted by a 94.7% Zn recovery grading 54.0% Zn in the Zn concentrate and grades of 5,504g/t Ag and 65.1% Pb in the Pb concentrate. Ag strongly partitions into the Pb and Cu concentrates for a combined 83.8% Ag recovery into concentrates that traditionally receive favourable payable terms.

ON DEALS AND CORPORATE ISSUES

  • Sonoro Metals Corp., granted stock options to certain directors, officers and consultants of the company to purchase an aggregate of 3,040,000 common shares.
  • Radius Gold Inc., reported that it has signed a binding agreement to acquire the 800 Ha Palmillas property from a private family which hosts high-grade epithermal Au-Ag mineralization and is adjacent to Amalia project in Chihuahua. During due diligence evaluation, Radius sampled outcrops and old adits obtaining encouraging results, such as 9.5 g/t Au and 73 g/t Ag over 4m, and 1.54 g/t Au and 58 g/t Ag over 10.5m. The company can earn a 100% interest in the Palmillas property by making staged payments over a period of five years for a total USD $350K, of which USD $200K is a final payment at the end of five years.

ON SOCIAL RESPONSIBILITY

  • With an investment of MXP $9M, and a direct benefit for 1,200 residents of the area, Governor of Durango, José Rosas Aispuro Torres, delivered road infrastructure works, in compliance with one more commitment to the inhabitants of Tepehuanes. The state executive said that this is a work that was carried out thanks to the resource of the Mining Fund, which made it possible to build eight thousand square meters of pavement with hydraulic concrete, directly benefiting the inhabitants of four colonies of the Municipal head.
  • The Peñoles Community Center, will give a new human development workshop. It also announced that another of the Peñoles Community Center workshops with the highest demand is that of teaching English, which students attend to receive instruction three days a week in both morning and evening hours.

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 epithermal quartz vein displaying boiling textures in a prospect in Zacatecas, Mexico.  Photo by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the Fourth Week of October, 2019.

 

barite crystals

By Miguel A Heredia

During the forty-three week of the year (October 21st to October 27th, 2019), at least 42 press releases were announced by companies working in Mexico, with eleven disclosing deals and corporate issues, ten announcing financial rounds, seven commenting on Mexican issues, six informing on exploration results, three communicating production results, three reporting on resources and developments of their projects, and one discussing issues on social responsibility.  ON MEXICO ISSUES, Napoleón Gómez Urrutia, a mining union leader and senator for the Morena party proposed to increase the taxes to mining concessions to levels of 20-30%.  Fernando Alanís, president of the Cámara Minera de México (CAMIMEX), reported that 244 Canadian companies stopped investing in Mexico. At the AIMMGM Mining convention in Acapulco, the CONAGO (Conferencia Nacional de Gobernadores) and the federal government were at disagreement on the use of the Mining Fund. Camimex expects the “Mesa de Minería” (Mining Forum) is installed before year’s end. Newmont-Goldcorp re-started up production at its Peñasquito mine in Zacatecas. ON EXPLORATION, In Baja California Norte, One World Lithium announced the continuation and progress of the phase 3 drilling program at its Salar del Diablo project.   In Sonora, Aloro mobilized crews to sample high grade Au veins on the northwest side of its Los Venados project, and Agnico Eagle provided an exploration update of its Santa Gertrudis project. In Chihuahua, Radius Gold and Pan American Silver commenced the phase 3 drilling program at its Amalia project. In Zacatecas, Galore reported the completion of 1,667.20m of core drilling at its Dos Santos project.  In Jalisco, GoGold reported drill results from six new holes from its Los Ricos project. ON MINING, Agnico Eagle, Fresnillo, and Excellon reported Q3, 2019 production and financial results from their Mexican operations. ON FINANCING, Galore closed a first tranche of a private placement for gross proceeds of CAD $187K and implemented a shares for services agreement on its drill contract (Dos Santos project, Zacatecas). One World Lithium reported that its previously announced non-brokered private placement (Sept 05, 2019), will be replaced by a non-brokered private placement for gross proceeds of $1M (Salar del Diablo project, Baja California Norte).  VVC closed a non-brokered private placement for gross proceeds of CAD $2M (Kaity project in Samalayuca, Chihuahua). Silver Viper closed a private placement financing to raise gross proceeds for $4M (La Virginia project, Sonora). Orla entered into a commitment letter for up to USD $125M project finance facility (Camino Rojo project, Zacatecas). Vista Gold received the third option payment from Prime Mining for the Guadalupe de Los Reyes property in Sinaloa. Newmont-Goldcorp declared a quarterly dividend of $0.14 per share of common stock (Peñasquito mine, Zacatecas). Gold Resource increased 100% its instituted annual dividend from $0.02 to $0.04 per common share (Arista mine, Oaxaca). ON RESOURCES AND DEVELOPMENT, Golden Minerals outlined progress at its Velardeña and Rodeo properties in Durango. Minera Peñoles informed that is to start operations at its Capela mine in Guerrero. Endeavour reported infill drill results from its Parral project in Chihuahua.  ON DEALS AND CORPORATE ISSUES, Alien Metals appointed Novum Securities Ltd as its joint corporate broker with immediate effect (San Celso project, Zacatecas). Defiance Silver appointed a couple of OreQuest consultants as technical advisors to work on its San Acacio project in Zacatecas. Impact granted stock options to directors, officers, and employees (Zacualpan mining district, State of Mexico).   Oroco announced special general meeting of its shareholders to be held on December 19, 2019 (Santo Tomas project, Sinaloa). Vangold announced changes on its board of Directors and appointed its corporate secretary (El Pinguino mine, Guanajuato). Tamino Minerals was invited to list on the Mexican Stock Exchange (El Volcan project, Sonora). Torex responded a recent letter to its shareholders and stakeholders (Limon-Guajes, Guerrero). Sonoro advanced discussions with China-based companies to develop and finance its Cerro Caliche project in Sonora. Magellan entered into an option agreement with Golden Minerals to acquire 100% interest in Santa Maria project in Chihuahua. Santacruz Silver appointed a new director to its Board (Veta Grande, Zacatecas). Ternium received from PROFEPA, the certification as a clean industry (Tecomán plant in Colima).  ON SOCIAL RESPONSIBILITY, In Aconchi, Sonora, the Orquesta La Caridad from Grupo Mexico offered a concert to 250 attendees by 110 children and young people, the first on its Rio Sonora tour. Doctor Vagón, the Health Train of Fundación Grupo México, arrived in San Pedro, Coahuila from October 23 to 26 to give medical attention to the residents of the municipality.

ON MEXICO ISSUES

  • Napoleón Gómez Urrutia, a mining union lider and senator by Morena proposed to increase the taxes to mining concessions to levels of 20 to 30%, sustaining that countries like Peru, Bolivia or Chile are at those levels. That declaration was done while he was defending the federal government intention to use the Mining Fund to other means that what it was imposed for: helping develop mining communities. The leader of the Morena senators is to present an integral initiative for the mining sector. Why don’t we raise the taxes to mining, to the rights on mineral exploitation, to the mining concessions taxes?, asked Gómez Urrutia. Ricardo Monreal, a presidential hopeful considered the proposal to be correct, and asked for its formalization.
  • Fernando Alanís, Camimex (Cámara Minera de México) president said that 244 Canadian companies stopped investing in Mexico. Camimex is fighting for the 100% deductibility of exploration expenses, as it is a strong deterrent on exploration investment, where the most risk of the industry is concentrated.
  • At the AIMMGM Mining convention in Acapulco, the CONAGO (Conferencia Nacional de Gobernadores) and the federal government were at disagreement on the use of the Mining Fund. While the governors fight for the said funds to remain on the states and municipalities, the federal government proposed that 85% of the resources are directed to the Secretaria de Educación Pública (SEP), by reforming the Ley Federal de Derechos (Federal Law on Duties) starting on 2020. The federal proposal allows full discretionally use of the where the funds are used, even in areas where no mining is conducted. In 2018 alone, $3,840 M pesos (about US$202 M) were accrued on the Mining Fund.
  • Camimex expects the “Mesa de Minería” (Mining Forum) is installed before year’s end, and can start to work with the federal government, so the mining sector is heard and doubts and misunderstandings can be cleared. Subjects to address include the social, the environment, regulation of the investment compromise, and the fiscal issues. Camimex stressed the mining in Mexico pays about 46 percent in taxes.
  • Newmont-Goldcorp, re-started up production at its Peñasquito mine in Zacatecas, following the lifting of the illegal blockade on October 8, 2019. “With the support of the State and Federal governments, including an ongoing police presence, the Company has commenced an approximately 10-dayprocess of bringing back the operation to full production”.

ON EXPLORATION

  • One World Lithium Inc., announced the continuation of the phase 3 drilling program at its Salar del Diablo project in Baja California Norte. Four boreholes are planned for a total of 2,400 meters (about 8,000 feet) of exploration drilling. The company reported that the first borehole reached a depth of 220m. Target depths of up to 600 meters are expected to be achieved.
  • Aloro Mining Corp., is to sample high-grade gold veins on the northwest of the Los Venados property in Sonora. In this area lies a 3.5 km vein system up to 400 m in width that has been partially mapped. Results from early sampling have results of up to 32 g/t Au and 49 g/t Ag.
  • Agnico Eagle Mines Limited, provided an update of the exploration program carried out at its Santa Gertrudis project in Sonora. Drilling at Santa Gertrudis has extended the Amelia deposit in the Trinidad zone to 800m strike length, with highlight intercepts of 6.4 g/t Au over 7m and 9.6 g/t Au over 6m.
  • Radius Gold Inc., and Pan American Silver Corp., commenced the phase 3 drilling program at its Amalia project in Chihuahua. Pan American is now operating the project and expects to drill a minimum 2,500m of core drilling.
  • Galore Resources Inc., reported the completion of 1.667.20m of core drilling at its Dos Santos project in Zacatecas. Drilling results are still pending to be released.
  • GoGold Resources Inc., reported results from six new diamond drill holes including four from the San Juan zone, the first step out hole testing the El Troce area, and one from the Main area at its Los Ricos project in Jalisco. At San Juan, hole LRGG-19-050 intersected 0.39 g/t Au and 76 g/t Ag (1.41 g/t AuEq) over 45.3m, including 1.01 g/t Au and 242 g/t Ag (4.23 g/t AuEq) over 6.2m,and hole LRGG-19-051 intersected 0.4 g/t Au and 86 g/t Ag (1.55 g/t AuEq) over 24m. At El Troce, hole LRGG-19-053 intersected 1.53 g/t Au and 164 g/t Ag (3.72 g/t AuEq) over 10.1m, including 5.22 g/t Au and 489 g/t Ag (11.75 g/t AuEq) over 2.8m. At the Main area, hole LRGG-19-055 intersected 0.58 g/t Au and 75 g/t Ag (1.59 g/t AuEq) over 14.4m.

ON MINING

  • Agnico Eagle Mines Limited, reported Q3, 2019 production and financial results from their Mexican operations. At Pinos Altos mine, Chihuahua, it processed 519K tonnes of 2.22 g/t Au to produce 34.8K Oz Au at a total cash cost of USD $745 per Oz Au produced. At Creston Mascota mine in Chihuahua, the company processed 284K tonnes of 0.78 g/t Au to produce 9,596 Oz Au at a total cash cost of USD $668 per Oz Au produced. At La India mine, Sonora, Agnico processed 1.1M tonnes of 0.77 g/t Au to produce 18.4K Oz Au at a total cash cost of USD $872 per Oz Au produced.
  • Fresnillo plc, presented Q3 2019 production results from their Mexican operations. Consolidated production results for the Q3, 2019 reached 13.3M Oz Ag (including Silverstream for 659K Oz Ag), 209.7K Oz Au, 34.9M Lb Pb, and 56.8M Lb Zn. At Fresnillo mine, Zacatecas, the company processed 648,646 tonnes of 183 g/t Ag, 0.99 g/t Au, 1.24% Pb, and 2.14% Zn, to produce 3.4M Oz Ag, 15.6K Oz Au, 15.8M Lb Pb, and 22.9M Lb Zn. At Saucito mine, Zacatecas, it processed 703K tonnes of 207 g/t Ag, 1.22 g/t Au, 0.84% Pb, and 1.38% Zn, to produce 4M Oz Ag, 21K Oz Au, 11M Lb Pb, and 14.9M Lb Zn. At Pyrites Plant, Fresnillo processed 38,572 tonnes of 314 g/t Ag and 2.44 g/t Au, to produce 285K Oz Ag and 954 Oz Au. At Cienega mine, Durango, it processed 335,493 tonnes of 1.78 g/t Au, 151 g/t Ag, 0.81% Pb, and 1.35% Zn, to produce 17.8K Oz Au, 1.4M Oz Ag, 4.1M Lb Pb, and 6.2M Lb Zn. At San Julian mine in Chihuahua-Durango border, the company processed 321,798 tonnes of 1.39 g/t Au and 108 g/t Ag, to produce 13,711 Oz Au and 1M Oz Ag from veins, and 559,693 tonnes of 0.07 g/t Au, 130 g/t Ag, 0.41% Pb, and 1.35% Zn, to produce 523 Oz Au, 2M Oz Ag, 4M Lb Pb, and 12.8M LB Zn from the disseminated ore body. At the Herradura mine, Sonora, Fresnillo processed 5,591,746 tonnes of 0.71 g/t Au and 3 g/t Ag, to produce 102,439 Oz Au and 412K Oz Ag. At the Noche Buena mine, Sonora, it processed 3,215,167 tonnes for a total volume hauled of 11,447,273 tonnes with grades of 0.58 g/t Au and 0.25 g/t Ag to produce 37,570 Oz Au and 14K Oz Ag.
  • Excellon Resources Inc., announced Q3, 2019 production results from its Platosas mine, Durango. Excellon milled and processed 17,235 tonnes of 512 g/t Ag, 4.4% Pb, and 6% Zn to produce 257.5K Oz Ag, 1.3M Lb Pb, and 1.65M Lb Zn, with metallurgical recoveries of 87.2%, 77.7%, and 76.5% respectively.

ON FINANCING

  • Galore Resources Inc., closed a first tranche of a private placement for gross proceeds of CAD $187K.The company also implemented a cash + shares for services agreement with COMEFIN S DE RL DE CV, to conduct the diamond core drilling programs at Galore’s 100% owned El Alamo and Los Gemelos projects (Dos Santo project, Zacatecas).
  • One World Lithium Inc., reported that its previously announced non-brokered private placement (Sept 05, 2019), will be replaced by a non-brokered private placement of unsecured convertible notes for gross proceeds of $1M (Salar del Diablo project, Baja California Norte).
  • VVC Exploration Corporation, closed a non-brokered private placement for gross proceeds of CAD $2M. The proceeds of the Financing will be used for exploration and development on the Kaity Property in Mexico, including diamond drilling, land use permits and associated costs, metallurgical bench testing of the copper mineralization, and investigation, evaluation and implementation of the Gloria Pilot Mining Project (Kaity project in Samalayuca, Chihuahua).
  • Silver Viper Minerals Corp., closed a private placement financing to raise gross proceeds for $4M. Net proceeds will be used to continue exploration and development of its La Virginia Au-Ag in Sonora and for general corporate and working capital purposes.
  • Orla Mining Ltd., entered into a commitment letter with Trinity Capital Partners Corporation, with respect to a secured project finance facility of USD $125M for the development of its Camino Rojo project in Zacatecas.
  • Vista GoldCorp., received the third $1.5M option payment from Prime Mining Corporation for the Guadalupe de Los Reyes project in Sinaloa.
  • Newmont-Goldcorp, declared a quarterly dividend of $0.14 per share of common stock, payable on December 27, 2019 to holders of record at the close of business on December 5, 2019.
  • Gold Resource Corporation, announced it has increased 100% its instituted annual dividend from $0.02 to $0.04 per common share. This increases the monthly dividend to one-third of a cent per common share for October 2019 payable on November 25, 2019 to shareholders of record as of November 12, 2019 (Arista mine, Oaxaca).

ON RESOURCES AND DEVELOPMENT

  • Golden Minerals Co. informed it is working on a new PEA on its Velardeña properties in Durango, to reflect better metal prices and new metallurgical processes. At Rodeo, also in Durango, Golden plans to initiate a small drilling program to provide better definition on its 46 K Oz Au resource. At Yoquivo, in Chihuahua, Golden has the permits to initiate a drill program to test several epithermal veins early in 2020.
  • Minera Peñoles informed that is to start operations at its Capela mine in Guerrero. The Capela mine is a US$340 M investment that is to generate 1,000 direct jobs and at least 1,400 indirect ones. Mining generates more than 10 thousand direct jobs and 50 thousand indirect jobs, making it the second most relevant economic activity in the state.
  • Endeavour Silver Corp., reported infill drill results from 10 underground holes collared on the Veta Colorada vein at its Parral project in Chihuahua. Every hole intersected strong Ag mineralization below the lowest mine level. Recent drilling highlights include 308 g/t Ag over 11.6 m true width n hole VCU-16. “Several drill holes intersected two mineralized zones, the Veta Colorada and the HW Veta Colorada in the hanging wall, with a total true width of mineralization up to 16.5 m in hole VCU-17, with 226 g/t Ag over 7.6m true width, including 593 g/t Ag over 0.5m true width, and 254 g/t Ag over 8.9m true width, including 1,355 g/t Ag over 0.5m true width”.

ON DEALS AND CORPORATE ISSUES

  • Alien Metals Ltd., appointed Novum Securities Ltd as its joint corporate broker with immediate effect (San Celso project, Zacatecas).
  • Defiance Silver Corp., appointed a couple of OreQuest consultants as technical advisors to execute the ongoing exploration program at its san Acacio project in Zacatecas.
  • Impact Silver Corp., granted stock options to directors, officers, and employees for the purchase of 2M shares in its capital at the above market price of $0.36 per share (Zacualpan mining district, State of Mexico).
  • Oroco Resources Corp., announced that its special general meeting for shareholders will be held on December 19, 2019 to consider and vote on a resolution to approve the Company’s option to acquire Altamura Copper Corp.(Santo Tomas project, Sinaloa).
  • Vangold Mining Gold, informed about changes on its Board of Directors and expanded the role in the company of its CFO to become in its corporate secretary (El Pinguico mine, Guanajuato).
  • Tamino Minerals, has been invited to list on the Mexican Stock Exchange. If Tamino can achieve the listing, it may have a solution to combat its shortage of investment capital and advance their exploration projects (El Volcan, Sonora).
  • Torex Gold Resources Inc, responded a recent letter to its shareholders and stakeholders to confirm its long-term strategy to develop a sustainable, multi-asset, mining business by executing operationally to generate strong free cash flow from its Limon-Guajes mine in Guerrero, de-risking and bringing Media Luna project, Guerrero into production, and delivering the full potential of its innovative Muckahi Mining System to the benefit of all Torex shareholders.
  • Sonoro Metals Corp., continued advancing its discussions with China-based engineering, procurement and construction companies regarding plans to develop and finance a proposed heap leach pilot operation for its Cerro Caliche project in Sonora.
  • Magellan Gold Corp., entered into an option agreement with Golden Minerals Company to acquire 100% interest in the Santa Maria project in Chihuahua by making a cash payment of USD $1M to Golden at closing, and pay Golden a 6.5% NSR based royalty from all production until a total of USD $3M has been paid under the royalty agreement, the royalty is then reduced to a 3.0% NSR based royalty for the balance of the property life.
  • Santacruz Silver Mining Ltd., appointed a new director to its Board (Veta Grande, Zacatecas).
  • Ternium, received from PROFEPA, a certification as a clean industry for the 6th consecutive year, established by the Mexican Standard, NMX-AA-162-SCFI 2012, Regulation of the General Law of Ecological Balance and the Protection of the Environment in matters of Self-Regulation and Environmental Audits. The certification was granted to the Alzada pelletizing plant and Tecomán station, both located in Colima.

ON SOCIAL RESPONSIBILITY

  • In Aconchi, Sonora, the Orquesta La Caridad from Grupo Mexico offered a concert to 250 attendees by 110 children and young people from Nacozari, the first on its Rio Sonora tour.
  • Doctor Vagón, the Health Train of Fundación Grupo México, arrived in San Pedro, Coahuila from October 23 to 26 to give medical attention to the residents of the municipality. The Health Train will offer general consultations, dermatology, pediatrics, dentistry, chiropractic and physical rehabilitation, Comprehensive service for women (mastography, colposcopy), comprehensive diabetic patient clinic, comprehensive service for women, nutrition, psychology, optometry, family planning, geriatrics, audiometry, laboratory tests and cabinet studies, all for free.

 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 in a rhyolite tuff from a prospect in Chihuahua, Mexico.  Photo by Miguel A Heredia.