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.

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

IMG_2620 - copia

By Jorge Cirett

During the 42nd week of the year (October 14th to October 20th, 2019), at least 29 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, The Congress dominated by Morena approved a bill dramatically changing the rules od operation of the Mining Fund for 2020 . ON EXPLORATION, in Sonora, Magna Gold released drilling results for its Mercedes project, and announced new exploration targets. In Sinaloa, Oroco Resource commenced work at the Santo Tomas project. In Durango, Gainey Capital commenced drilling at Las Margaritas. In Veracruz, Azucar Minerals discovered another mineralized center at El Cobre.  ON MINING, Sierra Metals, Fortuna Silver, Avino Silver, Gold Resource and McEwen Mining released third quarter 2019 production results. Argonaut Gold reported an accident that resulted in the death of two contractor’s employees at La Colorada, in Sonora. ON FINANCING, Kootenay Silver closed a $2 M private placement. Gainey Capital granted options to directors, officers, employees and consultants. Candelaria Mining discontinued a private placement due to unfavorable market conditions. ON RESOURCES AND DEVELOPMENT, SilverCrest Metals reported development mining sampling has returned less tonnage but more AgEq ounces at its Las Chispas property in Sonora. Azure minerals is planning a two-stage drill program at the Loma Bonita gold target of its Alacran property in Sonora. ON DEALS AND CORPORATE ISSUES, Tamino Minerals elaborated on the company’s history and incoming work at its El Volcan project in Sonora. Bacanora Lithium presented the current situation of Ganfeng’s investment on the company. Megastar Development entered into an option agreement regarding the Cerro Minas concession in Oaxaca. Riverside Resources released information on its BHP financing agreement for generative copper exploration in NW Sonora. Golden Minerals entered into an option agreement with Magellan Gold to sell its interest in the Santa Maria project in Chihuahua. ON SOCIAL RESPONSIBILITY. The Grupo Mexico Foundation donates 175 K trees in Queretaro. Ternium granted scholarships to 145 students. Esperanza Silver presented a sustainable project in Morelos.

ON MEXICO ISSUES

  • The Camara de Diputados (Deputies Chamber, or Congress) approved legal reforms concerning the use of the Mining Fund. The changes were approved only by the Morena party and allied members, taking away the planning and overseeing of funds (generated by a special tax on mining) from local mining municipalities, enforcing what is seen as federal discretional use.

ON EXPLORATION

  • Gainey Capital Corp. commenced a diamond drilling campaign at the Las Margaritas project in Durango. This initial phase comprises 1,080 m of drilling in 11 holes focused on the best mineralization exposed at the surface, where sampling has returned up to 73.7 gpt Au.
  • Azucar Minerals Ltd. Announced the discovery of another mineralized center at its El Cobre project in Veracruz. Two holes tested the El Primo target area, defined by a gold, copper and molybdenum soil anomaly. Relevant intervals comprise 5.25 m @ 0.60 gpt Au, 0.26% Cu and 8.45 m @ 0.20 gpt Au, 0.29% Cu in one hole and 200 m @ 0.40 gpt Au, 0.24% Cu in another hole, including 86.50 m @ 0.70 gpt Au, 0.42% Cu; which includes 55.60 m @ 0.94 gpt Au, 0.56% Cu; which includes 10 m @ 1.44 gpt Au, 0.85% Cu. This target is at least a kilometer away from other already identified mineralized centers within the property.
  • Oroco Resource Corp. commenced technical field work, initial environmental baseline studies and permitting at its Santo Tomas project in Sinaloa. This work is to be followed by a 3D induced polarization geophysical survey and the first phase of confirmation diamond drilling. The company holds an option to acquire a 56.7% interest in the 1,173 ha core concessions of the project, and might increase that interest up to an 81.0% interest with a project investment of up to CAD$30 M. Oroco also holds a 77.5% interest in 7,808 ha surrounding and adjacent to the core concessions.

ON MINING

  • Argonaut Gold Inc. informed on an accident involving a contractor that resulted in death by electrocution of two individuals while performing maintenance work on a haul truck at La Colorada mine in Sonora. Operations were suspended on October 11 and resumed on October 12, 2019.
  • Sierra Metals Inc. reported third quarter 2019 production, including figures from its Mexican operations. At Bolivar in Chihuahua, 331.8 K tonnes were processed at a 3,792 tonnes per day rate (tpd) @ 0.86% Cu, 20.5 gpt Ag, 0.31 gpt Au, recovering 81.3% Cu, 79.0% Ag, 62.3% Au to produce 5.115 M Lb Cu, 173 K Oz Ag, 2,173 Oz Au. At Cusi, also in Chihuahua, 70.4 K tonnes were processed at an 805 tpd rate @ 141.5 gpt Ag, 0.15 gpt Au, 0.14% Pb, recovering 84.6% Ag, 39.6% Au, 78.3% Pb to produce 271 K Oz Ag, 135 Oz Au, 168 K Lb Pb.
  • Fortuna Silver Mines Inc. disclosed production results for the third quarter 2019, including figures from its Mexico operations. At San Jose in Oaxaca, 268 K tonnes were milled @ 219 gpt Ag, 1.40 gpt Au, recovering 82.4% Ag, 90.6% Au, to produce 1.71 M Oz Ag, 10,942 Oz Au, at a cash cost per ton of US$70.80.
  • Avino Silver & Gold Mines Ltd. released third quarter 2019 production results from its Avino property in Durango. Consolidated figures comprise 202.7 K tonnes processed @ 44 gpt Ag, 0.33 gpt Au, 0.33% Cu, recovering 76% Ag, 67% Au, 68% Cu to produce 221.9 K Oz Ag, 1,448 Oz Au, 1.38 M Lb Cu. At the Avino mine 122.2 K tonnes were processed @ 41 gpt Ag, 0.31 gpt Au, 0.58% Cu to produce 139.4 K Oz Ag, 900 Oz Au, 1.3 M Lb Cu; 17.8 K tonnes were processed from the San Gonzalo mine stockpiles (the mine is now closed) @ 56 gpt Ag, 0.41 gpt Au to produce 29.6 K Oz Ag, 194 Oz Au; From historic above ground stockpiles 62.6 K tonnes were processed @ 47 gpt Ag, 0.33 gpt Au, 0.33% Cu to produce 232.1 K OZ Ag, 1,528 Oz Au, 311 K Lb Cu.
  • Gold Resource Corp. reported preliminary production for the third quarter 2019, including figures from its operations in Mexico. At the company’s Oaxaca Mining Unit, a total of 7,462 Oz Au, 473.8 K Oz Ag, 492 tonnes of copper, 2,459 tonnes of lead and 6,057 tonnes of zinc were produced.
  • McEwen Mining Inc. released production details for the third quarter 2019, including figures from its Mexican operations. At its El Gallo property in Sinaloa, 3,018 Oz Au were produced by residual leaching of the heap leach pad.

ON FINANCING

  • Kootenay Silver Inc. closed its non-brokered private placement of $2 M that was fully subscribed by Ninepoint Silver Equities Class with Sprott Asset Management LP acting as sub-advisor. (Columba, Chihuahua).
  • Candelaria Mining Corp. announced that a private placement previously announced has been discontinued due to unfavorable market conditions. The company intends to conduct an offering on a non-brokered private placement basis for aggregate gross proceeds of up to $700 K. Closing of the new private placement is expected to be on November 30, 2019 (Caballo Blanco, Veracruz).
  • Gainey Capital Corp. granted 1.5 M incentive stock options to its directors, officers employees and consultants (Las Margaritas, Durango).

ON RESOURCES AND DEVELOPMENT

  • SilverCrest Metals Inc. informed development work has intersected better grades than those in the resources estimate for the Babicanora vein at its Las Chispas property in Sonora. Underground mining along 180 m of the Babicanora vein (20% of the mineralized length on area 51) reported 33% less tonnes, but 65.7% more AgEq ounces for the interval. In total 4,170 tonnes were extracted @ 15.18 gpt Au and 1,071 gpt Ag (2,209 gpt AgEq), while the resource estimate in this zone graded 4.48 gpt Au and 556 gpt Ag (892 gpt AgEq). Underground sampling returned up to 2.8 m @ 94.52 gpt Au, 8,320 gpt Ag (15,409 gpt AgEq). SilverCrest plans to have a stockpile of 25-30 K tonnes of high-grade material containing 800 K to 1 M Oz AgEq, extracted by development work to the end of 2019.
  • Azure Minerals Ltd. is planning a two-stage drill program on resource expansion at Loma Bonita, within the Alacrán project in Sonora. High-grade intersections on the resource boundary, like 47 m @ 2.8 gpt Au, 33 gpt Ag and 67 m @ 1.6 gpt Au, 21 gpt Ag (both from surface) favor the continuity of the ore body. First pass sampling of historical workings south of Cerro Alacrán returned up to 3,675 gpt Ag, 21.1 gpt Au, 2.3% Cu, 33.5% Pb, 21.0% Zn. Applications for environmental approval have been submitted.

ON DEALS AND CORPORATE ISSUES

  • Tamino Minerals Inc. elaborated into the long and convolute company history and financing (El Volcan, Sonora).
  • Bacanora Lithium PLC. Announced the completion of the “Invested Agreement and Offtake Agreement” which together make the “Strategic Investment” of Ganfeng Lithium Co.. The relevant approvals have been completed and Bacanora has now received £21.96 M of funds from Ganfeng, for a 29.99% equity interest in Bacanora Lithium PLC and a 22.5% JV investment directly in the Sonora Lithium Project. The vice-president of Wangfeng was appointed a director of Bacanora. “The Bacanora project team in Mexico continues to progress the final design work for the mine, concentrator and kiln sections of the processing plant. The Ganfeng technical team has initiated work on the hydrometallurgical circuit…”
  • Tamino Minerals Inc. informed it is going to present a NI 43-101 report on its El Volcan property in Sonora once a registration statement is filed to the SEC and the company becomes fully reporting.
  • Megastar Development Corp. has entered into an option agreement with Gunpoint Exploration Ltd. to acquire 100% interest in the 899 ha Cerro Minas mining concession (title (234333) in Oaxaca. The agreement entails the payment of US$10 K and 100 K Megastar shares on the effective date, US$20 K and 150 K shares on the first anniversary, US$30 K and 250 shares on the second anniversary and US$40 K and 300 K shares on the third anniversary, with Gunpoint retaining a 1.5% NSR royalty, of which 0.5% can be bought by US$1.0 M.
  • Riverside Resources Inc. informed that the first two to three quarters of the exploration financing agreement with BHP for generative copper exploration in NW Sonora will be centered on regional prospect generation. The program envisages a minimum two-year US$2 M budget, and upon advancing projects to the operation phase (Phase II), BHP has the option to fund up to US$5 M for drilling and other exploration expenditures. Riverside is to receive US$200 K by project that makes it to the second phase.
  • Golden Minerals Co. entered into an option agreement with Magellan Gold Corp. to sell its rights to acquire a 100% interest in the Santa Maria project, in Chihuahua. Magellan has a 150 days due diligence period to decide whether to execute the option, on which it has to pay $1 M cash, with Golden Minerals retaining a 6.5% royalty until a total of $3 M has been paid as royalty, with Golden retaining a 3% NSR royalty for the life of the mine. If Magellan fails to get the mine to production within one year from closing the deal, Golden will get back the property.

ON SOCIAL RESPONSIBILITY

  • The Grupo Mexico Foundation donates 175 plants and trees in Queretaro. Grupo Mexico is aiding to reach the goal of planting 250 thousand trees in the Queretaro municipality. Grupo Mexico is the number one producer of tree saplings in the country.
  • Ternium delivers scholarships and supports education in a mining zone. The Roberto Rocca Education Program and the Universidad de Colima granted this year scholarships to 145 students from universities in Mexico City, Nuevo Leon, Coahuila, Veracruz, Puebla, Colima and Michoacan. Since its inception in 2006, the Roberto Rocca Education Program has granted 3,000 scholarships.
  • Esperanza Silver (Alamos Gold) presented a sustainable project for the Esperanza project in Morelos. The project involves the company’s involvement in the remediation of a nearby community landfill, and the collaborative support on the Lagunas de Zempoala, the national park Tepozteco, the biological corridor Ajusco-Chichinautzin as well as the state parks El Texcal, Sierra Montenegro and the biosphere reserve Sierra de Huautla.

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:  Gneiss hosted quartz-feldspar veinlet from a project in Oaxaca. Picture by Jorge Cirett.

IMG_2620 - copia

The Mining and Exploration News in Mexico: Highlights on the First Week of September, 2019

IMG_0970aBy Jorge Cirett

During the 36th week of the year (September 2nd to September 8th, 2019), at least 20 press releases were announced by companies working in Mexico. ON MEXICO ISSUES Karen Flores Arredondo was appointed General Director of CAMIMEX. VVC Exploration is searching for financing to start operations at Samalayuca.  ON EXPLORATION, in Baja California, One World Lithium is to conduct a field visit to its Salar del Diablo project. In Sonora, Minera Alamos announced the discovery of a new target, Gold Ridge. In Chihuahua, Ethos Gold released results on 16 RC holes at the Purisima project. In Coahuila, Prize Mining released assay results of several targets on a 20 km long trend. In Zacatecas, Galore received assays for the first two holes at El Alamo target of its Dos Santos project; Advance Gold completed an IP survey at the Tabasqueña project; Alien Metals released exploration results at San Celso, Los Campos and Donovan 2. ON MINING, Argonaut Gold completed a fourth water well, and now has the capacity to sustain production at 30 K tonnes a day at San Agustin, Zacatecas. ON FINANCING, Mexican Gold granted 650 K stock options. Defiant Silver seeks to extend the expiry date of some warrants. SilverCrest Metals granted options for 975 K shares. Telson Mining received conditional approval for a US$12 M loan. Southern Silver Corp.  closed the final tranche of financing for gross proceeds of $1.1 M. Silver Viper intends to raise up to $3.0 M through a private placement financing round. ON RESOURCES AND DEVELOPMENT, GoGold released results for four more holes at its Los Ricos project in Jalisco. Pan American Silver reported all-inclusive reserves and resources of 203.3 M Oz Ag, 2.16 M Oz Au on its La Colorada, Dolores and La Bolsa properties. Minera Alamos received one more permit to start construction at its Santana project in Sonora. Goldplay Exploration released underground channel sampling results from San Marcial, Sinaloa. ON DEALS AND CORPORATE ISSUES, Mexican Gold Corp. appointed new directors and announced an incoming new resource estimate for Las Minas, Veracruz. Consolidated Zinc acquired the remaining 10% of the Plomosas mine rights to gain a 100% interest. The company also announced a favourable court ruling on a land use agreement for the Plomosas mine.   ON SOCIAL RESPONSIBILITY. No relevant news.

ON MEXICO ISSUES

  • The sectional president from Samalayuca, Chihuahua, Javier Melendez Cardona, was interviewed on the coming mining investment on La Gloria by VVC Exploration Corp. He explained the project is in the financing stage of a process that is to greatly benefit the local communities.
  • Karen Flores Arredondo is appointed CAMIMEX’s (Cámara Minera de México) General Director as of September 15, 2019. Flores Arredondo has recently worked for Agnico Eagle in Mexico, and has held posts with other private enterprises and government agencies related to the Mining Industry.

ON EXPLORATION

  • Prize Mining Corp. released assay results from surface sampling at its Manto Negro project in Coahuila. The sampling on the Apache, San Jose and Las Curvas concessions returned up to 1.3 m @ 3.86% Cu, 44 gpt Ag; 1.2 m @ 2.62% Cu, 58 gpt Ag; 1.8 m @ 2.31% Cu, 28 gpt Ag and six chip samples running 7.7% to 29.3% Cu and 190 to 759 gpt Ag. At San Jose a best sample interval of 1.8 m @ 2.3% Cu, 28 gpt Ag and up to 17.1% Cu and 1,689 gpt Ag from dumps. At Las Curvas the best mineralised interval was 2 m @ 2.5% Cu, 33 gpt Ag and up to 23% Cu, 710 gpt Ag from dumps. Prize is pursuing a mineralised horizon over 20 km in length in the Formation San Marcos red-bed sandstone below the Cupido Formation limestone.
  • Ethos Gold Corp. released results of the completed 16 reverse circulation (RC) drill campaign at its Purisima project in Chihuahua. At the site Ethos targeted shallow gold mineralisation in epithermal banded quartz veining and associated silicification and stockworks. Highlighted results include 3.05 m @ 0.76 gpt Au; 7.62 m @ 0.52 gpt Au; 9.14 m @ 0.43 gpt Au, 14 gpt Ag; 6.10 m @ 0.40 gpt Au, 9 gpt Ag; 15.24 m @ 0.50 gpt Au; 6.10 m @ 0.50 gpt Au. Ethos decided to terminate the Purisima option agreements.
  • Galore Resources Inc. received assays for the first two core holes at El Alamo target, part of its Dos Santos project in Zacatecas. Highlighted results comprise 3.40 m @ 3.46 gpt Au, 3 gpt Ag (including 1.20 m @ 8.89 gpt Au); 10.90 m @ 14 gpt Ag (including 1.0 m @ 88 gpt Ag); 9.15 m @ 2.02 gpt Au, 5 gpt Ag. The results also define intervals tens of meters in width with anomalous silver in the 1-10 ppm range. Galore informs these results, along with some other tracer elements, support the view that this is the upper part of an epithermal system.
  • Minera Alamos Inc. announced the identification of Gold Ridge, a new mineralised zone on its Santana property in Sonora. One third of 147 rock samples collected exhibit grades >0.10 gpt Au, ranging from 0.1 gpt to 3.6 gpt Au and 5 gpt Ag to 669 gpt Ag, with the mineralised surface covering an area of 1,000 m x 200 m located 2-3 km from the currently planned heap leach operations at Santana.
  • Advance Gold Corp. completed a 3D induced polarization (IP) geophysical survey on its Tabaqueña project in Zacatecas. The 9.6 line kilometre survey highlighted a 250 wide by 800 m long continuous chargeability anomaly.
  • One World Lithium Inc. announced the visit of Mike Rosko of Montgomery & Associates to the Salar del Diablo project in Baja California, along with the president and director of OWL. The visit is to include previous and proposed drill site locations as well as surface geological features.
  • Alien Metals Ltd. released results from recent exploration at its San Celso, Los Campos and Donovan 2 projects in Zacatecas. At San Celso, further assays include 18 anomalous samples averaging 272 gpt Ag, with a high of 1,275 gpt Ag. At Los Campos, 14 anomalous samples averaged 185 gpt Ag, with a peak of 547 gpt Ag. At Donovan 2, a sample returned 2.68 gpt Au.

ON MINING

  • Argonaut Gold Inc. completed the fourth water well at its San Agustin operation in Durango. The new well demonstrated sufficient water capacity to meet the needs of the operation to run at 30 K tonnes per day of ore, which is planned for the fourth quarter of 2019.

ON FINANCING

  • Mexican Gold Corp. granted 650 K stock options to an officer and an employee of the company (Las Minas, Veracruz).
  • Defiant Silver Corp. intends to seek TSX Venture Exchange approval to extend the expiry date of 6.19 M warrants, previously issued, by one year (San Acacio, Zacatecas).
  • SilverCrest Metals Inc. granted stock options for 975 K shares to directors, officers, employees and consultants of the company (Las Chispas, Sonora).
  • Telson Mining Corp. received conditional approval for a US$12 M medium term loan from an international investment bank to finalize construction at Tahuehueto, Durango.
  • Southern Silver Exploration Corp. closed the final tranche of the previously announced private placement, for gross proceeds of $1.1 M. In total the company closed two tranches for gross proceeds of $4.2 M (Cerro Las Minitas, Durango).
  • Silver Viper Minerals Corp. intends to overtake a private placement financing to raise gross proceeds of up to $3.0 M (La Virginia, Sonora).

ON RESOURCES AND DEVELOPMENT

  • GoGold Resources Inc. released results for three more diamond drill holes at Los Ricos main area and the first hole drilled at the San Juan target of its Los Ricos project in Jalisco. Highlighted drill core intervals comprise 6.2 m @ 1.17 gpt Au, 158 gpt Ag; 15.5 m @ 0.53 gpt Au, 84 gpt Ag (including 2.7 m @ 2.04 gpt Au, 217 gpt Ag); 17.1 m @ 1.59 gpt Au, 364 gpt Ag (including 5.6 m @ 3.81 gpt Au, 818 gpt Ag) at Los Ricos and 16.9 m @ 0.54 gpt Au, 68 gpt Ag (including 5.0 m @ 1.46 gpt Au, 148 gpt Ag) at the San Juan target.
  • Pan American Silver Corp. reported mineral reserves of 557 M Oz Ag, 5.1 M Oz Au, of which 141.6 M Oz Ag and 1.58 M Oz Au are in its three properties in Mexico: La Colorada, Dolores and La Bolsa. Reserves and resources all inclusive comprise 148.3 M Oz Ag, 129.8 K Oz Au at La Colorada in Zacatecas, 45.4 M Oz Ag, 1,383.5 K Oz Au at Dolores in Chihuahua and 9.6 M Oz Ag, 651.7 K Oz Au at La Bolsa in Sonora.Pan American Silver Reserves1
  • Minera Alamos Inc. received the ETJ (Estudio Tecnico Justificativo) for the Santana Gold project in Sonora. Combined with the previously approved MIA (Manifiesto de Impacto Ambiental) the company holds all the necessary rights to initiate construction of commercial scale operations at Santana.
  • Goldplay Exploration Ltd. released results from underground channel sampling in a re-opened old adit at the Faisanes target of its San Marcial project in Sinaloa. A zone of 11 m @ 155 gpt includes 6 m @ 232 gpt Ag, ending in mineralisation at the deepest sampled point within the tunnel. “The Company is reviewing plans to extend the tunnel beyond this high-grade Interval”.

ON DEALS AND CORPORATE ISSUES

  • Mexican Gold Corp. announced the appointment of Matt Liard as Vice President Exploration, Sonny Bernales as Senior Geologist and Michael Kanevsky as CFO. The company outsourced an updated 43-101 resource estimate with an underground cut-off grade, that should be released in October 2019 (Las Minas, Veracruz).
  • Consolidated Zinc Ltd. entered into a binding agreement with Retec Guaru S.A. de C.V. under which CZC is to acquire the remaining 10% interest in the Plomosas mine in Chihuahua. “The purchase consideration for the acquisition of the Retec interest in MLAZ is a 1% Net Smelter Return Royalty (the “Royalty”) from the sale of zinc and lead concentrates produced from Plomosas”. Completion of the agreement is expected by 30 September 2019.
  • Consolidated Zinc Ltd. announced that the Appeals Court of Chihuahua ruled in favour of the company’s subsidiary regarding a dispute over a land use agreement with a local rancher in place for its Plomosas mine in Chihuahua.

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

On the image below: Quartz veinlet on an orogenic gold project in Oaxaca. Picture by Jorge Cirett

IMG_0970a

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

Boiling texture in a quartz chalcedonic vein

By Miguel A Heredia

During the twenty seven week of the year (July 15th to July 7th, 2019), at least 27 press releases were announced by companies working in Mexico, with ten communicating production results, seven disclosing deals and corporate issues, six announcing financial rounds, two reporting on resources and development of their projects,  and two informing on exploration results.  ON MEXICO ISSUES, no relevant news.  ON EXPLORATION, In Chihuahua, Silver Spruce secured drill pads to commence phase 1 drill program at its Pino de Plata project. In Oaxaca, Megastar identified multiple targets at its Yautepec property. ON MINING, Avino, Consolidated Zinc, First Majestic, Fortuna Silver, Fresnillo, Gold Resource, Hecla, McEwen, Premier, and Sierra Metals reported Q2, 2019 production results from their Mexican operations. ON FINANCING, Americas Silver announced a non-brokered private placement for gross proceeds of approximately US$10M (Cosala, Sinaloa). It also announced the termination of the agreement with Premier Gold on the San Felipe project in Sonora for total sales proceeds of US$10.8M. Discovery Metals announced its intentions to complete a non-brokered private placement to rise gross proceeds of $9M (Puerto Rico project, Coahuila). Golden Minerals entered in definitive agreements to rise gross proceeds of $2.25M (Santa Maria project, Chihuahua). Mexican Gold closed a non-brokered private placement for gross proceeds of $4M (Las Minas project, Veracruz). Orla Mining rised $3.6M through early warrant exercise incentive program (Camino Rojo project, Zacatecas). Silver Spruce received a final payment of $150K for the sale of its Kay Mine project to Croesus. Silver Spruce received and accepted an unsolicited cash investment offer of USD $250K (Pino de Plata project, Chihuahua). ON RESOURCES AND DEVELOPMENT, Endeavour acquired two mineral properties adjacent to its Guanacevi mine in Durango. SilverCrest received the operating permit from SEMARNAT for the development of its Las Chispas project in Sonora. ON DEALS AND CORPORATE ISSUES, Silver Spruce announced the acquisition of the Cocula advanced Au project in Jalisco. Excellon, Great Panther, Mexican Gold, and Prize announced management changes.  Mexican Gold, Prize, and Minera Alamos granted stock options to Directors, Officers, Employees, and Consultants.

 ON MEXICO ISSUES

  • No relevant news.

ON EXPLORATION

  • Silver Spruce Resources Inc., secured drill pads to commence phase 1 drill program at its Pino de Plata project in Chihuahua. The surface landowners have granted surface access and signed the drill permit application.
  • Megastar Development Corp., identified multiple targets at its Yautepec property in Oaxaca. The property lies within the known Oaxaca Au-Ag epithermal trend that hosts the San Jose Mine owns by Fortuna Silver, and the Arista-Switchback mine owned by Gold Resource. Results from the first 146 rock-chip samples were received. Significant results are: 6 samples with > 10 ppm Ag (maximum value of 62 ppm Ag); 9 samples with > 100 ppb Au (maximum value of 0.86 ppm Au);   5 samples with > 100 ppm Cu (maximum value of 639 ppm Cu); 6 samples with > 100 ppm Pb (maximum value of 863 ppm Pb); 10 samples with > 100 ppm Zn (maximum value of 215 ppm Zn; 8 samples with > 100 ppm Mo (maximum value of 648 ppm Mo); 12 samples with > 1,000 ppm As (maximum value of 6,290 ppm As); 9 samples with > 1,000 ppm Ba (maximum value of 4,590 ppm Ba); and 12 samples with > 1 ppm Hg (maximum value of 7.8 ppm Hg). These anomalous values are from quartz veins, silicified breccias and siliceous sinter deposits in multiple areas along a north-northwest striking 8.4km trend of prospective rocks that trace a volcanic caldera margin. An additional 175 rock-chip samples have been submitted to the lab and results will be announced in subsequent new releases.

ON MINING

  • Avino Silver & Gold Mines Ltd., reported Q2, 2019 consolidated production results from its Avino mine operation in Durango. It processed 200,873 tonnes of 57 g/t Ag, 0.41 g/t Au, and 0.38%Cu to produce 246K Oz Ag, 1,609 Oz Au, and 1.14M Lb Cu. Metallurgical recoveries were 69%, 61% and 63% for Ag, Au, and Cu respectively.
  • Consolidated Zinc Limited, reported June 2019 production results from its Plomosas mine in Chihuahua. It mined 5,099 tonnes of 17.5% Zn, 11.2% Pb, and 62 g/t Ag for a total of 2M Lb Zn, 1.3M Lb Pb, and 10.2K Oz Ag contained. From this tonnage, only 2,409 tonnes were processed but additional stockpiles of 6,599 tonnes remain in mine site awaiting be delivered to the Aldama plant.
  • First Majestic Silver Corp., announced Q2, 2019 production results from their Mexican operations. The below table shows the mine by mine production results:

 

  • Fortuna Silver Mines Inc., released Q2, 2019 production results from its San Jose mine in Oaxaca. Fortuna processed 271,016 tonnes of 273 g/t Ag and 1.68 g/t Au to produce 2.2M Oz Ag and 13.2K Oz Au, with metallurgical recoveries of 90.76% and 90.23% respectively.
  • Fresnillo plc., reported Q2, 2019 consolidated production results from their Mexican operations. The company produced 14.42M Oz Ag (including Silverstream), 221.3K Oz Au, 29.2M Lb Pb, and 46.3M Lb Zn. The production results by mine are as follow: At the Fresnillo mine in Zacatecas, 618,852 tonnes with grades of 192 g/t Ag, 0.9 g/t Au, 1% Pb, and 1.6% Zn were processed to produce 3.5M Oz Ag, 13.5K Oz Au, 11.7M Lb Pb, and 15M Lb Zn. At the Saucito mine in Zacatecas, 662,023 tonnes were processed with grades of 242 g/t Ag, 1.15 g/t Au, 0.8% Pb, and 1.3% Zn to produce 4.5M Oz Ag, 18K Oz Au, 10.2M Lb Pb, and 13.31M Lb Zn. At the Piritas Plant in Zacatecas, 39,159 tonnes were processed with grades of 352 g/t Ag and 2.57g/t Au to produce 333K Oz Ag and 1,215 Oz Au. At the La Cienega mine in Durango, the company processed 329,117 tonnes with grades of 1.57 g/t Au, 162 g/t Ag, 0.6% Pb, and 1.1% Zn to produce 15K Oz Au, 1.5M Oz Ag, 3M Lb Pb, and 4.8M Lb Zn. At the San Julian mine in Chihuahua-Durango border, Fresnillo processed 338,797 tonnes of 1.71 g/t Au and 124 g/t Ag from San Julian Veins to produce 17.7K Oz Au and 1.2M Oz Ag, while 562,534 tonnes were processed from the San Julian Disseminated Ore Body with grades of 0.08 g/t Au, 149 g/t Ag, 0.4% Pb, and 1.4% Zn, to produce 636 Oz Au, 2.3M Oz Ag, 4.2M Lb Pb, and 13.3M Lb Zn. Total production at San Julian was 18.3K Oz Au and 3.6M Oz Ag. At its Herradura mine in Sonora, the company processed 5,466,791 tonnes of 0.84 g/t Au and 2.5 g/t Ag to produce 120K Oz Au and 280K Oz Ag. At the Noche Buena mine in Sonora, Fresnillo processed 3,663,549 tonnes of 0.56 g/t Au and 0.22 g/t Ag,  to produce 35.3K Oz Au and 17K Oz Ag.
  • Gold Resource Corporation, released production results from its Oaxaca Mining Unit for the period Q2, 2019. It produced 7,881 Oz Au, 466.5K Oz Ag, 1.1M Lb Cu, 5.2M Lb Pb, and 13.6M Lb Zn.
  • Hecla Mining Company, reported Q2, 2019 production results from its San Sebastian mine in Durango. The company produced 0.5M Oz Ag and 3,547 Oz Au.
  • McEwen Mining Inc., announced that 5,340 Oz Au were produced at its El Gallo mine in Sinaloa during the period Q2, 2019.
  • Premier Gold Mines Limited, reported that a total of 15.5K Oz Au and 56.5K Oz Ag were produced from its Mercedes mine in Sonora during Q2, 2019.
  • Sierra Metals Inc., released Q2, 2019 production results from their Mexican operations. At Its Bolivar mine in Chihuahua, Sierra Metals processed 326,208 tonnes of 0.86% Cu, 18 g/t Ag, and 0.24 g/t Au to produce 5.2M Lb Cu, 152K Oz Ag, and 1,586 Oz Au. At its Cusi mine in Chihuahua, the company processed 82,117 tonnes of 1|45 g/t Ag, 0.15 g/t Au, and 0.1% Pb to produce 283K Oz Ag, 146 Oz Au, and 154K Lb Pb.

ON FINANCING

  • Americas Silver Corporation, announced that Eric Sprott has agreed to purchase common shares of the company for a total investment of approximately US$10M in a non-brokered private placement (Cosala, Sinaloa). It also announced the termination of the agreement with Premier Gold on the San Felipe project in Sonora for total sales proceeds of US$10.8M.
  • Discovery Metals Corp., announced its intentions to complete a non brokered private placement to raise gross proceeds of $9M, of which Eric Sprott has agreed to purchase 19.9% of the company by investing $7.7M. Discovery plans to acquire all the issued and outstanding common shares of Levon Resources Ltd., as announced in a news release dated May 30, 2019. Gross proceeds will be used to continue exploration at Cordero, Chihuahua, following the acquisition of Levon, and at the Coahuila projects (Puerto Rico, Minerva, and Monclova).
  • Golden Minerals Company, entered in definitive agreements with institutional investors for an offering of shares of common stock with gross proceeds of $2.25M (Santa Maria project, Chihuahua).
  • Mexican Gold Corp., closed a non-brokered private placement for gross proceeds of $4M. Net proceeds will be used for exploration and advancement of its Las Minas project in Veracruz.
  • Orla Mining Ltd., rised $3.6M through an early warrant exercise incentive program rised $3.6M. Net proceeds will be used to continue regional exploration and allow greater flexibility prior to construction of its Camino Rojo Oxide project in Zacatecas.
  • Silver Spruce Resources Inc., received a final payment of $150K for Croesus Gold Corp., for the sale of its Kay Mine project. Some of the net proceeds will be used to fund the due diligence program at its advanced Cocula gold project in Jalisco. The company also received and accepted an unsolicited cash investment offer of USD $250K to purchase 5% interest of Silver Spruce Resources de Mexico SA de CV, the Mexican subsidiary of Silver Spruce, and 5% interest in the mining titles for each of the four mining concession that comprise its Pino de Plata project in Chihuahua. The offer was done before the commencement of the phase 1 drill program.

ON RESOURCES AND DEVELOPMENT

  •  Endeavour Silver Corp., acquired a 10 years rights to explore and exploit two mineral properties adjacent to its Guanacevi mine in Durango from a subsidiary of Minera Frisco SAB de CV. The El Porvenir property of 15 Ha covers the up dip extension of the El Porvenir Norte orebody, and The El Curso property of 40 Ha that covers any possible northwest extension of the El Porvenir Cuatro orebody, which was the highest grade mine in the district. Endeavour agreed to meet certain minimum production targets from the properties and pay Frisco a fixed per tonne production payment plus a floating NSR based on the spot Ag price.
  • SilverCrest Metals Inc., received from SEMARNAT the approval of the MIA or operating permit for the development of its Las Chispas project in Sonora. The receipt of the MIA provides the company to construct a 3,000 tonnes per day underground mine and a conventional processing facility with subsequent dry stack tailings and underground backfill for Las Chispas. The MIA remains in good standing for 14 years until July 17, 2033.

 ON DEALS AND CORPORATE ISSUES

  • Silver Spruce Resources Inc., acquired 100% interest in the Cocula advanced Au project in Jalisco from Prospeccion y Desarrollo Minero del Norte SA de CV (ProDeMin), which in turn, has an option agreement from the owners to acquire 100% interest in the Cocula project. Terms of the acquisition include a USD$160K due within two years of assumption of the ProDeMin contract; USD$330K due within year three; and USD$2.5M due within year four. ProDeMin has to negotiate with the owners to delay payments and to accept cash and company shares as payment. The owners also have retained a 2% NSR which is capped at USD$1.5M and of which 1% can be purchased for USD$500K. Minimum work expenditure include USD$250K in the first two years and USD$500K within the following two years. Silver Spruce has also agreed to reimburse ProDeMin USD$125K over two years for its previous option payments made to the owners, upon completion of the Company’s financing requirements, and to issue 3M of the Company’s common shares to ProDeMin over four years.
  • Excellon Resources Inc., announced the appointment of its CFO and VP Corporate Development (La Platosa, Durango).
  • Great Panther Mining Limited, announced the appointment of the Chair of the Board of Directors of the company (Topia mine, Durango).
  • Mexican Gold Corp., announced the resignation of its COO and one Director, and the appointment of a new member to its Board of Directors. The company also granted stock options to Directors, Officers, and Consultants of the company (Las Minas, Veracruz).
  • Prize Mining Corporation appointed as new Director to the Board of the company. It also granted stock options to Directors, Officers, Employees, and Consultants of the company (Manto Negro project, Coahuila).
  • Minera Alamos Inc., granted stock options to Managements, Directors, Employees, and Consultants of the company (Santana project, Sonora).

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

On the picture above, boiling texture in a low-sulphidation epithermal chalcedonic quartz vein in a prospect in Durango, Mexico.  Photo by Miguel A Heredia.

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

Cu mineralization

By Miguel A Heredia

During the twenty five week of the year (July 1st to July 7th, 2019), at least 13 press releases were announced by companies working in Mexico, with four disclosing deals and corporate issues, three announcing financial rounds, two reporting on resources and development of their projects, two communicating production results, and two informing on exploration results.  ON MEXICO ISSUES, no relevant news.  ON EXPLORATION, In Sonora, Sonoro Metals completed the phase 2 drill program at its Cerro Caliche project and released results for the last 15 holes. In Chihuahua, Kootenay commenced a drilling program at its Columba project. ON MINING, Leagold reported Q2 2019 production results (Los Filos mine, Guerrero). US Antimony released June 2019 production results from their Mexican operations and announced the start of production from its Los Juarez project in Queretaro. ON FINANCING, Aztec Minerals oversubscribed a non-brokered private placement to rise gross proceeds of CAD $468K (Cervantes project, Sonora). Mexican Gold announced a non-brokered private placement to rise gross proceeds of up to $4M (Las Minas project, Veracruz). Silver One announced a non-brokered private placement to rise gross proceeds of up to $2.5M (Peñasco Quemado project, Sonora). ON RESOURCES AND DEVELOPMENT, Fresnillo plc announced that the construction of its Piritas Plant continues and is expected to be operating in H2, 2020. Peñoles revealed its plan to put into operation its Capela polymetallic mine in Guerrero in Q3, 2019. ON DEALS AND CORPORATE ISSUES, Kootenay and Azucar Minerals granted stock purchase options to certain officers, directors, employees, and consultants. Sonoro Metals reported results from its annual general meeting for shareholders (Cerro Caliche project, Sonora). Santacruz acquired 50% interest in Carrizal Mining (Veta Grande project, Zacatecas). Endeavour reported a fatal accident at its Bolañitos mine in Guanajuato.

 ON MEXICO ISSUES

  • No relevant news.

ON EXPLORATION

  • Sonoro Metals Corp., completed the phase 2 drill program at its Cerro Caliche project in Sonora. Results from the drilling program that have increased substantially the size of the Au mineralization of all the mineralized areas at the project. Sonoro has drilled a total of 10,328m in 96 holes. The combination of historic and current exploration drilling now totals 23,679 meters in 212 drill holes in addition to more than 6,000 surface samples. The company also released assay results from the final 15 holes. Significant drill intersections are in hole SCR-094 with 1.13 g/t Au and 1.8 g/t Ag over  67m, including  2.67 g/t Au and 2.2 g/t Ag over 3.05m; hole SCR-095 with 0.66 g/t Au and 9 g/t Ag over 19.81m, including 4.47 g/t Au and 18 g/t Ag over 1.52m; hole SCR-089 with 0.57 g/t Au and 7 g/t Ag over 22.86m, including 1.82 g/t Au and 13 g/t Ag over 3.05m; hole SCR-083 with 0.51 g/T Au and 17 g/t Ag over 22.86m, including 3.16 g/t Au and 36 g/t Ag over 1.52m; and hole SCR-84 with 0.51 g/t Au and 14 g/t Ag over 15.24m, including 2.93 g/t Au and 34 g/t Ag over 1.53m. The company announced that it has commissioning an independent NI 43-101 technical report to estimate the resource potential of its Cerro Caliche project.
  • Kootenay Silver Inc., announced the commencement of a minimum of 3,000m core drill program in 12 holes at its Columba high-grade epithermal vein system project in Chihuahua which has returned up to 693 g/t Ag on surface sampling. “The first 12 holes of the drill program will be designed to test the F vein where underground development work extended to 200 meter depth and the historic mining occurred”. Historic grades from the underground workings indicate grades ranging from 600 to 900 g/t Ag with highlights of 1,900 g/t Ag over 4 meters and 679 g/t Ag along 133 meters of vein strike and 1.3 meters of vein width.

ON MINING

  • Leagold Mining Corporation, reported production results from its mine operations in Mexico and Brazil. The company produced 91,285 Oz Au in Q2, 2019 bringing year to date 2019 (H1, 2019) 197,234 Oz Au. (Los Filos mine, Guerrero).
  • US Antimony Corporation, released production results from their Mexican operations. The company produced 121, 451 Lb Sb, 1,211 short tonnes of zeolites, 846 Oz Ag and 8.5Oz Au in June, 2019. US Antimony also announced the start of Au-Ag production at its Los Juarez project in Queretaro with the processing of 30K tonnes at its Puerto Blanco flotation mill in Guanajuato.

ON FINANCING

  • Aztec Minerals Corp., oversubscribed a non-brokered private placement to raise gross proceeds of CAD $468K. The gross proceeds will be used to fund exploration work at the Cervantes porphyry Au-Cu project in Sonora as well as its Tombstone CRD Ag-Pb-Au-Cu project in Arizona, USA.
  • Mexican Gold Corp., announced a non-brokered private placement to rise gross proceeds of up to $4M. Net proceeds will be used for exploration and advancement of its Las Minas project in Veracruz.
  • Silver One Resources Inc., announced a non-brokered private placement to rise gross proceeds of up to $2.5M.

 ON RESOURCES AND DEVELOPMENT

  • Fresnillo plc., announced that the construction of the phase II of its Piritas plant in Fresnillo mining district is in progress and is expected to be operating in H2, 2020 to process historical and continuous tailings. Fresnillo expects the Piritas plant to improve overall Au and Ag recoveries, thereby maximizing production in the Fresnillo district. It also projects that production total an average of 3.5M Oz Ag and 13K Oz Au per year once both phases operate at full capacity.
  • Industrias Peñoles S.A.B. de C.V., revealed its plan to put in operation its Capela (former Rey de Plata) polymetallic mine in Guerrero in Q3, 2019, with an investment of US$303M. Capela mining unit will have the capacity to mill and benefit 360,000 tonnes per year 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 concentrates.

ON DEALS AND CORPORATE ISSUES

  • Kootenay Silver Inc., granted stock purchase options to officers, directors, employees and consultants to purchase up to an aggregate of 8.45 M shares of Kootenay at a price of $0.14 per common share for a period of five years (Columba project, Chihuahua).
  • Azucar Minerals Ltd., granted stock options to certain directors, employees, and consultants to purchase and aggregate of 967,800 common shares at a price of $0.34 for a period of two years ( EL Cobre project, Veracruz).
  • Sonoro Metals Corp., reported results from its annual general meeting of shareholders (Cerro Caliche project, Sonora).
  • Santacruz Mining Ltd., acquired 50% interest in Carrizal Mining S.A. de C.V., by paying to the vendor US$0.5M, the forgiveness of approximately US$264K in debt owed by the Vendor to Carrizal; and other consideration in the aggregate amount of approximately US$680K, including the transfer of a life-insurance policy and three vehicles from Carrizal to the Vendor, valued at US$494K and US$180K respectively (Veta Grande project, Zacatecas).
  • Endeavour Silver Corp., announced a fatal accident at its Bolañitos mine in Guanajuato. A drill helper died while installing roof bolts in the Plateros section of the mine. Unfortunately, he was killed by falling rock when part of the roof collapsed.

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, Cu mineralization in a VMS prospect in Oaxaca, Mexico.  Photo by Miguel A Heredia.

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

Chalcedonic quartz vein

By Miguel A Heredia

During the twenty one week of the year (June 3rd to June 9th, 2019), at least 31 press releases were announced by companies working in Mexico, with sixteen disclosing deals and corporate issues, five reporting on resources and development of their projects, five informing on exploration results, four announcing financial rounds, two communicating production results, and one discussing Mexican news.  ON MEXICO ISSUES, the Mining Undersecretary of the Secretary of Economy, Francisco Quiroga, said that mining companies from Canada, USA, Peru, Colombia and Australia showed their interest to invest up to USD$ 8M in Mexico mining projects.  ON EXPLORATION, In Baja California Norte, One World Lithium released drilling results from its Salar del Diablo project. In Sonora, Colibri reported assays results from sub-outcrops on its Evelyn project.  In Chihuahua, Monarca identified a skarn and potential CRD/porphyry deposit after running a geophysical survey at its San Jose project.  In Zacatecas, Galore announced it has commenced drilling of 2,500m core drilling program at its Dos Santos property to test the El Alamo target. In Jalisco, GoGold released drilling results from its Los Ricos project.  ON MINING, Mexus Gold announced that over 5,700 tonnes of high-grade ore will be broken on site and hauled to the crushing and leaching site at its Santa Elena mine in Sonora. US Antimony produced 159,142 Lb Sb and 1,292 tonnes of zeolites during May 2019. ON FINANCING, VVC announced a non-brokered private placement for gross proceeds of CAD $2M (Samalayuca project, Chihuahua). Galore received a USD $100K loan from an officer of the company to fund its current 2,500m diamond core drilling program at its Dos Santos project in Zacatecas.  One World Lithium closed its third and final tranche of a previous announced non-brokered private placement for CAD $298,700 and announced a non-brokered private placement to raise up to CAD $2M (Salar del Diablo project, Baja California Norte).  Azure secured A$ 2M financing via a convertible note.  ON RESOURCES AND DEVELOPMENT, Azure announced that its board of directors has approved the commencement of trial mining and processing of high-grade mineralization from its Oposura project in Sonora. Sonoro Metals initiated metallurgical testing at its Cerro Caliche project in Sonora.  Endeavour released underground drilling results from its Guanacevi mine in Durango. Oroco announced the reception of a draft technical report for its Santo Tomas project in Sinaloa. US Antimony reported expansion of its Madero, Coahuila smelter capacity, and reported that its Puerto Blanco leach plant in Guanajuato is in the testing phase for the production of Au and Ag from its Los Juarez mine in Queretaro.   ON DEALS AND CORPORATE ISSUES, Aura Resources, Almadex, and Azucar Minerals granted stock options to directors, officers and consultants.  Riverside appointed Alberto Orozco as its VP Corporate Development (La Cecilia project, Sonora). Monarca signed an option agreement to acquire 100% interest in the San Jose project in Chihuahua and appointed new director. Inomin signed a non-binding letter agreement to acquire 100% interest in the La Gitana project in Oaxaca from Gunpoint, and appointed new director and adviser. Candente announced management changes with the retirement of its chair and director and the appointment of new director (El Oro tailings project, State of Mexico). Goldgroup and VVC announced their annual general meeting of shareholders will be held on July 31, 2019 and August 19, 2019 respectively. SilverCrest reported results of its annual general meeting of shareholders and appointed a new director to the Board (Las Chispas project, Sonora). Kootenay reported that its partner Pan American Silver has relinquished its right to earn 75% interest in the Promontorio Mineral Belt in Sonora. Magna Gold closed its previous qualifying transaction on two mining concessions at its Mercedes property in Sonora. Sierra Metals repurchased a royalty on its Cusi mine in Chihuahua from Minera Cusi S.A. de C.V. in US$ 4M.

 ON MEXICO ISSUES

  • Mexican mining projects raised interest for up to USD$ 8M of investment by companies from Canada, USA, Peru, Colombia, and Australia. According to the head of mining in the country, before realizing the investments, it will be necessary to carry out the work of convincing the surrounding populations. He said: “The type of mining we want is to pay taxes, be socially responsible and achieve economic benefits so that it reaches society and the settlement is public.” He insisted that the presidential mandate is that mining concessions will not be canceled and that the commitments acquired in the past will be honored. Among the areas with the greatest potential are in the south-southeast of Mexico, specifically the states of Oaxaca, Guerrero and Morelos, among others, with products such as Ag, Au, and Cu. The Ministry of Economy reported that the mining-metallurgical sector in Mexico contributes 4% of the national Gross Domestic Product. While in the world our country is the largest producer of Ag; it is among the top 10 producers of 16 different minerals: silver, bismuth, fluorite, celestite, wollastonite, cadmium, molybdenum, lead, zinc, diatomite, salt, barite, graphite, gypsum, gold and copper.

ON EXPLORATION

  • One World Lithium Inc., released drilling results from its Salar del Diablo project in Baja California Norte. The company has completed the first three holes of a twelve drill program, and reported that two holes located 14km apart have intersected aquifers with water samples containing pH values indicative of brines. Drilling to date has demonstrated that there are multiple aquifers in the northern part of the Salar which indicates that the entire Salar could be very prospective.
  • Colibri Resource Corporation, reported additional grab samples results from abundant quartz with local iron-oxide staining in sub-outcrops found on areas not previously mapped or sampled at its Evelyn project in Sonora. Grab samples results include values of 4.81 g/t Au and 4.19 g/t Au. This new area is located approximately 1km north-northeast of the Main Zone which consists of a moderately to steeply dipping Au-bearing quartz vein which has been the subject of historical mining. Colibri is planning a property wide, high density, airborne magnetic survey to determine the structural framework and the setting of known Au mineralization.
  • Monarca Minerals Inc., identified a skarn and potential CRD/porphyry deposit in its San José project in Chihuahua, after conducting an IP-resistivity and magnetic survey which returned very strong IP/magnetic anomalies over 2.8km strike length resulting in numerous drill targets. Based on the geophysical results and previous encouraging chip sampling on the property, Monarca is planning to perform an 18-hole RC drilling program to test for potential precious and base metals at depth.
  • Galore Resources Inc., announced it has commenced drilling of 2,500m core drilling at its Dos Santos property in Zacatecas to test Au mineralization associated with iron-oxides jasperoid and karst breccias exposed along the east-west trending El Alamo target.
  • GoGold Resources Inc., reported encouraging drilling results from an additional five diamond drill holes at its Los Ricos project in Jalisco. Significant results were encountered in hole LRGG-19-011, drilled 75m down dip below the deepest intersection to date on the property, with 1.2 g/t Au and 140 g/t Ag (3.07 g/t AuEq) over 18.5m, including 2.16 g/t Au and 228 g/t Ag (5.19 g/t AuEq) over 8.4m; in hole LRGG-19-13 with 0.78 g/t Au and 195 g/t Ag (3.38 g/t AuEq) over 15.6m, including 1.3 g/t Au and 297 g/t Ag (5.25 g/t AuEq) over 8.8m; and in hole LRGG-19-14 with 1.1 g/t Au and 127 g/t Ag (2.79 g/t AuEq) over 14.2m, including 1.94 g/t Au and 209 g/t Ag (4.73 g/t AuEq) over 7.7m. These positive results confirm that the deposit is still open at depth.

ON MINING

  • Mexus Gold US, announced that over 5,700 tonnes of high-grade ore ranging from 5 to 10 g/t Au and 9 to 12 g/t Ag will be broken on site and hauled to the crushing and leaching site at its Santa Elena mine in Sonora. “The leaching process has started and will continue on a permanent basis as fresh ore will be added to the heap leach pad. Moving forward, Mexus will increase the scale and capacity of the system to maximize returns” added the CEO of the company.
  • US Antimony Corporation, produced 159,142 Lb Sb and 1,292 tonnes of zeolites during May, 2019. It also reported that the inventories of Mexican antimony mine ore continue to grow.

ON FINANCING

  • VVC Exploration Corporation, announced a non-brokered private placement to raise up to CAD $2M. Gross proceeds will be used for exploration and development of its Samalayuca project in Chihuahua.
  • Galore Resources Inc., received a USD $100K loan from an officer of the company to fund its current 2,500m diamond core drilling at El Alamo target within its Dos Santos project in Zacatecas.
  • One World Lithium Inc., closed its third and final tranche of a previous announced non-brokered private placement for CAD $298,700. The aggregate gross proceeds of this offering under the first, second and final tranche totalled CAD $2,073,250. It also announced a non-brokered private placement for gross proceeds of up to CAD $2M. Net proceeds will be used at its Salar del Diablo project in Baja California Norte as follow: Salar del Diablo project drilling program CAD $500K; analysis and further testing of drill results CAD $400K; southern region pre-drilling program CAD$400K; and balance for working capital.
  • Azure Minerals Limited, secured A$ 2M financing via a convertible note by entering into a binding commitment with the company´s major shareholder Deutsche Balaton. “This funding will enable the Company to meet start-up costs and working capital requirements with operations to commence in the September quarter of 2019”.

 ON RESOURCES AND DEVELOPMENT

  • Azure Minerals Limited, announced that its board of directors has approved the commencement of trial mining and processing of high grade mineralization from its 100% owned Oposura property in Sonora. Initial mine production and processing will range between 1,500 to 3,000 tonnes per month of mineralized material grading approximately 15% combined Zn and Pb. The ore material will be processed on a toll treatment basis through a nearby sulphide flotation processing facility.
  • Sonoro Metals Corp., initiated ore characterization and bottle roll and leach column test at its Cerro Caliche project in Sonora. The tests are expected to be completed in 8 weeks. If the results are positive, they will be incorporated in the sensitivity analysis in order to define the characteristics of the heap leaching pilot operation preliminary design, which would be then updated to a NI 43-101 level.
  • Endeavour Silver Corp., released underground drilling results from seventeen holes drilled at its Guanacevi mine in Durango. Seven holes intersected high-grade over mineable widths to extend. Highlights include 0.93 g/t Au and 251 g/t Ag (325 g/t AgEq) over 3m true width in hole UG-61, and two intersections in parallel veins in hole UG-75 with 2.93 g/t Au and 2,175 g/t Ag (2,409 g/t AgEq) over 1m true width, and 0.78 g/t Au and 579 g/t Ag (642 g/t AgEq) over 3.9m. “Recent drilling has extended high grade Ag-Au mineralization to depth at all three of our original orebodies, which should help to increase resources at Guanacevi.”
  • Oroco Resources Corp., announced the reception of a draft technical report for its Santo Tomas project in Sinaloa. The technical report presents the key findings of historical technical reports, including a 1994 PFS study by Bateman Engineering (supported by metallurgical work by Mountain States R&D International, Inc., a resource estimate by Mintec, Inc., and mining and plant estimates by Minetek S.A. de C.V.).
  • US Antimony Corporation, reported expansion of its Madero, Coahuila smelter capacity, which the installation of long rotary furnace (LRF) number 3. The company has an additional 3 LRFs in inventory. Furnace recovery is in the 96%-98% range and the additional capacity is expected to handle production increases from the Company’s Wadley and Sierra Guadalupe Mines in San Luis Potosi and Zacatecas respectively. It also reported that its Puerto Blanco leach plant in Guanajuato is in the testing phase for the production of Au and Ag from its Los Juarez mine in Queretaro.

ON DEALS AND CORPORATE ISSUES

  • Aura Resources Inc., granted stock options to directors, officers and consultants of the company to purchase an aggregate 1.2M common shares at an exercise price of $0.05 per share which expire on June 4, 2019 (Taviche project, Oaxaca).
  • Almadex Minerals Ltd., granted stock options to certain directors and officers of the company to purchase an aggregate 628K common shares at an exercise price of $0.32 per share which expire on June 4, 2019 (Ixtaca project, Puebla).
  • Azucar Minerals Ltd., granted stock options to certain directors, officers and consultants of the company to purchase an aggregate of 573K common shares at an exercise price of $0.29 per share which expire on June 4, 2019 (El Cobre project, Veracruz).
  • Riverside Resources Inc., announced the appointment of Alberto Orozco as its VP Corporate Development (La Cecilia project, Sonora).
  • Monarca Minerals Inc., signed an option agreement to acquire 100% interest in the San Jose project in Chihuahua, where the company identified a skarn and potential CRD/porphyry copper deposit. To acquire the property, Monarca will pay USD $150K in staged cash payments as follow: USD $40K on the option signing date (already paid), USD $50K twelve months after signing of the option agreement, and USD $60K twenty four months after signing of the option agreement. The agreement includes a 2% NSR upon reaching commercial production and Monarca keeps a right to purchase 1% NSR by a single payment of USD $100K. The company also appointed a new director to its Board.
  • Inomin Mines Inc., signed a non-binding letter agreement to acquire 100% interest in the La Gitana property in Oaxaca from Gunpoint Exploration Ltd. La Gitana comprises a 494 hectares that hosts a low-sulphidation epithermal Au-Ag deposits in Tertiary-aged volcanic rocks. In order to acquire 100% of the property Inomin has to make staged payments for $300K and issue 2M of common shares of the company as follow: $10K (paid) on signing agreement; $25K and 150K shares following execution of definitive agreement; $50K and 250K shares on first anniversary; $65K and 450K shares on second anniversary; $75K and 500K shares on third anniversary; and $75K and 650K shares on fourth anniversary. Inomin will have the right to accelerate payments at the company´s discretion, and is also subject to a NSR the terms of which have yet to be finalized.  The company also announced the resignation of one of its directors and the appointment of its replacement. It also appointed an adviser of the company.
  • Candente Gold Corp., reported the retirement of its chair and director and the appointment of its new director (El Oro tailings project, State of Mexico).
  • Goldgroup Mining Inc., announced that its annual general meeting of shareholders will be held on July 31, 2019 (Cerro Prieto mine, Sonora)
  • VVC Exploration Corporation, announced that its annual general meeting of shareholders will be held on August 19, 2019 (Samalayuca project, Chihuahua).
  • SilverCrest Metals Inc., reported results of its annual general meeting of shareholders and appointed a new director to the Board (Las Chispas project, Sonora).
  • Kootenay Silver Inc., announced that its JV partner Pan American Silver Corp., has relinquished to its right to earn 75% interest on the Promontorio Mineral Belt in Sonora, which include the Promontorio Resource and La Negra high-grade Ag discovery. Kootenay will be conducting a review of the work performed by Pan American in order to plan the next steps for advancing these assets.
  • Magna Gold Corp., closed its previous qualifying transaction on two mining concessions at its Mercedes property in Sonora. In consideration of the grant of the option, Magna will: (i) pay to the Seller an aggregate of US$1.34M plus VAT of 16%, paid in installments commencing on the 6th month from the effective date of the agreement (the “Effective Date”) and ending on the 48th month from the Effective Date; (ii) issue to the seller a 3% NSR, capped at US$3.5M and subject to the right of the corporation to acquire all 3 percentage points of the NSR at a price of US$500Kper percentage point, within the first three years of commercial production of the Mercedes Property; and (iii) conditional on the completion of a going public transaction within six months of the Effective Date, issue 2,442,105common shares of the corporation to the seller.
  • Sierra Metals Inc., repurchased a royalty on its Cusi Mine from Minera Cusi S.A. de C.V. for US$ $M. The royalty agreement required the company to pay a 3% royalty on the net revenues generated by the mine, less transportation costs, for the life of the mine. The company has already paid US$2.5 million upon signing the repurchase contract on May 10, 2019 and is required to pay a further US$1.5 million on May 10, 2021. With this repurchase, Sierra Metals will no longer have any royalties on any of its properties or mines.

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, chalcedonic quartz vein in a low sulphidation epithermal system in a prospect in San Luis Potosi, Mexico.  Photo by Miguel A Heredia.