Technical Report NI 43-101

The Mining and Exploration News in Mexico: Highlights on the Fourth Week of November 2023

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By Jorge Cirett                                             

During the 47th week of the year (November 19th to November 26th, 2023), companies working in Mexico posted 22 news releases. Four companies reported exploration advances on their properties, three companies released Q3 2023 reports, one on metallurgical test results and one more on new concentrate production. One company announced the repurchase of part of its shares, one a financing round, one an incentive warrant program and one more the payment of dividends.  One company released drilling results from a past producing mine, and one other filed a technical report on its property. One company reported on the acquisition of additional land adjacent to its mining operations, and two more on the appointment of directors. ON MEXICO ISSUES, the country has attracted US$2,737 M of direct foreign investment on mining this year.  ON EXPLORATION, in Sonora, Aztec Minerals has completed seven RC holes at Cervantes; Colibri Resource and Silver Spruce updated on project work at Diamante. In Chihuahua, Kootenay Silver released results from three holes at Columba. In Zacatecas, Radius Gold presented the results of the last drill hole at Tropico. ON MINING, Impact Silver, Bear Creek Mining and Guanajuato Silver presented Q3 2023 production results. Luca Mining presented results from metallurgical tests at Campo Morado. Golden Minerals begun to produce gold-bearing pyrite concentrates at Velardeña. ON FINANCING, Teck Resources intends to repurchase up to 7.8% of its shares. Oroco Resource launched a financing round for up to $2.5 M. Heliostar Metals is encouraging the early exercise of share purchase warrants. Alamos Gold declared a quarterly dividend.  ON RESOURCES AND DEVELOPMENT, Silver Storm released results from drilling at La Parrilla past-producing mine in Durango. Sonoran Desert filed a technical report on the Cuatro Hermanos property in Sonora. ON DEALS AND CORPORATE ISSUES, Coeur Mining signed a purchase agreement with Fresnillo PLC to acquire mining concessions adjacent to its mining operations at Palmarejo in Chihuahua. Osisko Development and Orla Mining announced the appointment of directors. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • According to information from the Economy Secretariat (Secretaría de Economía) Mexico has attracted US$2,737 M of direct foreign investment on mining this year, and US$9,089 M during the first five years of the present administration.
  • According to Camimex, in a note published on El Economista, three companies control 80% of mining production by Mexican enterprises: Grupo Mexico, Fresnillo PLC and Peñoles.

ON EXPLORATION

  • Radius Gold Inc. provided results from the last of hole of the 1,300 m diamond drilling program at the Tropico project in Zacatecas. Highlighted intervals comprise 9.02 m @ 0.11 gpt Au; 1.53 m @ 0.33 gpt Au; 4.58 m @ 0.22 gpt Au; 19.82 m @ 0.15 gpt Au. “Drilling defined a large gold mineralized breccia body that starts at surface and to date defined 250m down dip….. The drilling encountered wide zones of classic low sulphidation epithermal alteration, high level chalcedonic silica, banded stockwork and massive quartz veining, and breccias with gold mineralization, but not significant high grade mineralization”.
  • Aztec Minerals Corp. announced the completion of the first seven holes of the current drilling program at Cervantes, in Sonora. The eleven-hole reverse circulation drilling program envisages 1,650 m of which 963 m have already been completed in the California zone, while step-out drilling is to focus in expansion. Results are pending. “The gold mineralization is characterized by oxidized and unoxidized stockwork veinlets of A, B, and C types and disseminated sulfide sites, with silicification and phyllic alterations. Potassic alteration is present in places and is associated with mineralization as well”.
  • Colibri Resource Corp. and JV partner Silver Spruce Resources Inc. report the discovery of Au-Ag showings on the Diamante property in Sonora. Recent work in the property includes geological mapping, evaluation and sampling of historical showings, collection and assaying of 49 stream sediment samples and 60 outcrop samples. New mineralized showings in the northern and southern parts of the concession returned assays of 3.52 gpt Au, 121 gpt Ag; 0.122 gpt Au, 197 gpt Ag; 0.818 gpt Au, 5 gpt Ag; 0.749 gpt Au, 2 gpt Ag; 3.34 gpt Au, 20 gpt Ag. The Diamante property exhibits characteristics of “epithermal low to intermediate sulfidation Ag-Au (Pb-Zn), high sulfidation Au-Cu, and potential transition zones within and peripheral to porphyry style Au-Cu mineralization”.
  • Kootenay Silver Inc. announced results from three additional drill holes at its Columba project in Chihuahua. The drill program envisages 3,000 m on 12 to 15 holes to extend known mineralization on the “D” vein target area. Highlighted core length intervals comprise 29 m @ 208 gpt Ag, 0.2% Pb, 0.5% Zn (including 9.67 m @ 510 gpt Ag, 0.2 gpt Au, 0.5% Pb, 1.0% Zn; which includes 2.37 m  1,142 gpt Ag, 0.1 gpt Au, 0.9% Pb, 2.5% Zn), 10.1 m @ 152 gpt Ag, 0.2% Pb, 0.4% Zn; 3.1 m @ 308 gpt Ag, 0.1% Pb, 0.3% Zn (including 1.56 m @ 532 gpt Ag, 0.2% Pb, 0.4% Zn). “Columba hosts an extensive network of intermediate-style epithermal quartz, carbonate +/- barite veins aligned into two broadly cross-cutting orientations. Fieldwork to date has identified numerous mineralized structures across the project measuring up to 4 kilometres in length.”

ON MINING

  • Luca Mining Corp. announced results from its optimization program at the Campo Morado mine in Guerrero. A bulk concentrate is being produced with greater than 70% Cu recovery, up from the historical 35-40% recovery range. “Overall zinc recovery is expected to increase from 76% to 86% and the final concentrate grade increases from 46% to 56% zinc over the next 12 months…. Ausenco have conducted a range of laboratory testing, initially of zinc circuit feed samples, to study the potential for improved zinc circuit stage recoveries. With a series of changes to reagents and other operational parameters in flotation in the plant, overall zinc recovery increased from 75% to 82% and the final concentrate grade from 45% to 51% zinc”. Additional work is being conducted to produce clean and higher-grade Cu and Pb concentrates.
  • Golden Minerals Co. has begun producing gold-bearing pyrite flotation concentrate from its Velardeña properties in Durango. “The Company is processing material that has been stockpiled at Velardeña since the mines last operated in 2015”. Recent favorable market terms for Au bearing pyrite/arsenopyrite concentrate are now economic to process and sell.
  • Impact Silver Corp. announced its financial and operating results for the third quarter 2023. At Zacualpan, in Estado de Mexico, throughput was 37.2 K tonnes @ 162 gpt Ag. At Plomosas, in Chihuahua, Impact has completed the final steps to get back online the 200 tpd zinc mine. “Exploration potential at Plomosas is exceptional with only 600m of the 6-kilometre-long structure assessed”. The company invested $3.8 M in exploration expenditures and mining assets, with a cash position at quarter-end of $8.9 M and working capital of $8.7 M.
  • Bear Creek Mining Corp. reported results for Q3 2023. At the Mercedes mine in Sonora, 123.5 K tonnes were mined @ 2.79 gpt Au, with 126.2 K tonnes processed averaging 2.40 gpt Au, recovering 93.4% Au to produce 9,155 Oz Au, 33.7 K Oz Ag. During the period the company entered into a restructuring agreement with Equinox Gold Corp. to convert a $26 M current liability into a non-current obligation by issuing a convertible promissory note at a competitive interest rate. A second restructuring agreement was signed with Sandstorm Gold Ltd. to reduce near-term Au and Ag stream delivery obligations and refinance and extend debt. A C$9.5 M private placement was completed also during the period. Mining methods have been changed to sub-level caving at the San Martin deposit and sub-level stoping at the Marianas deposit. Average mining costs have decreased from $80.84 per tonne mined to $68.37 during the year (15% decrease). The Mercedes structural trend has contributed with “over 580,000 ounces of gold to the mine’s historical production since 2011”. Production from the San Martin deposit increased from 400 tpd to almost 600 tpd during Q3 and is expected to reach 800 tpd during Q4 2023.
  • Guanajuato Silver Company Ltd. released financial and operating results for Q3 2023. Consolidated production from Valenciana and El Cubo mines in Guanajuato and from Topia in Durango comprises 134.9 K tonnes mined, 132.5 K tonnes milled, to produce 425.5 K Oz Ag, 3,441 Oz Au, 935.8 K Lb Pb, 857.7 K Lb Zn, or 787.1 K Oz AgEq at cash cost $20.79 per Oz AgEq and an AISC of $26.22 per Oz AgEq.
  • Sailfish Royalty Corp. announced operating and financial results for Q3 2023. No information was provided on the Gavilanes property in Durango, Sailfish’s only significant exploration property in Mexico.

ON FINANCING

  • Teck Resources Ltd. is to establish a normal course issuer bid to purchase up to 40 M Class B shares from November 2023 to November 2024, representing 7.8% of the outstanding Class B shares, or 7.9% of the public float, as at November 15, 2023. “Teck is making the normal course issuer bid because it believes that the market price of its Class B Shares may, from time to time, not reflect their underlying value and that the share buy-back program may provide value by reducing the number of shares outstanding at attractive prices. All repurchased shares will be cancelled” (San Nicolas, Zacatecas).
  • Oroco Resource Corp. announced a non-brokered private placement to raise gross proceeds of up to $2.5 M (Santo Tomas, Sinaloa).
  • Heliostar Metals Ltd. updated on its incentive warrant program designed to encourage the early exercise of share purchase warrants. To date, holders of 14.37 M outstanding warrants have committed to participate in the warrant incentive program, which if exercised would result in gross proceeds of $4.6 M (Ana Paula, Guerrero).
  • Alamos Gold Inc. declared a quarterly dividend of US$0.025 per common share. Alamos has paid dividends for 14 consecutive years, during which time $324 M has been returned to shareholders through dividends and share buybacks, including $40 M thus far in 2023 (Mulatos, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Silver Storm Mining Ltd. released results from two more holes at La Parrilla, in Durango. Highlighted core length intervals comprise 0.82 m @ 419 gpt Ag, 0.53 gpt Au, 0.09% Cu, 12.3% Pb, 10.7% Zn; 0.44 m @ 200 gpt Ag, 0.19 gpt Au, 0.10% Cu, 6.6% Pb, 8.8% Zn; 1.77 m @ 25 gpt Ag, 4.07 gpt Au, 0.06% Cu, 0.1% Pb; 2.28 m @ 67 gpt Ag, 0.04 gpt Au, 0.02 % Cu, 3.1% Pb, 3.2% Zn; 8.72 m @ 125 gpt Ag, 0.04 gpt Au, 0.06% Cu, 2.4% Pb, 4.8% Zn; 1.05 m @ 322 gpt Ag, 0.16 gpt Au, 0.07% Cu, 9.5% Pb, 15.8% Zn. One of these high-grade intercepts is 97 m below the last mine development, while another high-grade replacement zone was identified. An unusual tourmaline breccia pipe was intersected, returning 1.77 m @ 4.07 gpt Au. “Drill results from the Quebradillas mine have enhanced our understanding and confidence that the La Parrilla Mine can be brought back online. In 2024, Silver Storm will proceed with technical studies targeting the re-establishment of mining operations in 2025.”
  • Sonoran Desert Corp. filed the NI 43-101 compliant technical report on the Cuatro Hermanos project in Sonora. The Mineoro Explorations LLC produced report states mineralization is of Porphyry Cu-Mo style associated to a porphyry intrusive complex hosted in an andesitic volcanic sequence, with Cu-Mo mineralization forming subvertical orebodies related to magmatic breccias and possibly tabular bodies of more than 3 Km along strike. Modelling suggests the Main and West zones might be connected, and that deeper drilling is needed. Recommended activities include relogging of core and RC drilling chips from the 2007-2008 campaigns, check assays on 10% of the pulps, drilling the West zone at 100 m spacing, deeper drilling, twinning of some holes, RC drilling and column leach test on the South Conglomerates (Exotic Cu target), begin metallurgical testing of oxides and sulfides, tie surface access agreements and commence permitting for drilling.

ON DEALS AND CORPORATE ISSUES

  • Coeur Mining Inc. signed a purchase agreement with Fresnillo PLC to acquire mining concessions adjacent to the Palmarejo complex in Chihuahua. The concessions comprise 2,833 ha, including the southeast extension of the Independencia and Nacion deposits, currently being mined at the Palmarejo property, and to the northeast a concession that surrounds “multiple targets containing mineralization and historic resources that were added through the 2015 acquisition of Paramount Gold and Silver. The terms of the transaction include a $10 M payment upon closing, an additional $10 M one year after closing and an additional $5 M two years after closing. The concessions will be subject to a royalty payment of $25 per Oz for each new Oz AuEq of resource discovered between 450 K and 2 M Oz AuEq.
  • Osisko Gold Royalties Ltd. announced Mr. Sean Roosen resigned as a director in order to focus on his role as CEO and Chair of the Board of Directors of Osisko Development Corp. (San Antonio, Sonora).
  • Orla Mining. Ltd. appointed Mr. Rob Krcmarov as an independent director of the company (Camino rojo, Zacatecas).

ON SOCIAL RESPONSIBILITY

  • No Relevant News.

On the image below: Quartz-specularite vein in a Sonoran Desert project. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the Second Week of November 2023

/ Gambusino Prospector / Leave a comment

By Jorge Cirett                                             

During the 45th week of the year (November 6th to November 12th, 2023), companies working in Mexico posted 29 news releases. Two companies reported exploration advances on their properties and twelve companies released Q3 2023 reports. Two companies informed on financing rounds, one on the granting of share options and one more on its share consolidation process. One company amended the terms on a property acquisition, one is reviewing its strategic options forward, one more is waiting for mining permits and two announced director’s appointments. ON MEXICO ISSUES, Ganfeng Lithium Company is trying to negotiate with the Mexican government the recent cancellation of its mining concessions in Sonora. ON EXPLORATION, In Chihuahua, Mammoth Resources presented metallurgical results from Tenoriba. In Zacatecas, Radius Gold presented drilling results from Tropico. ON MINING, Capstone Copper, Endeavour Silver, Gold Resource, Pan American Silver, Aura Minerals, Gatos Silver, Fortuna Silver, SilverCrest Metals, Coeur Mining, Avino Silver, Golden Minerals and MAG Silver presented Q3 2023 production results. ON FINANCING, Tocvan Ventures is to close a CAD$500 K financing round. Golden Minerals closed a US$4.2 M public offering. Minaurum Gold granted stock options to directors, officers and consultants. Kootenay Silver announced the consolidation of its shares.  ON RESOURCES AND DEVELOPMENT, Heliostar Metals reported drilling results from its Ana Paula project in Guerrero. Prime Mining reported on drilling at its Los Reyes project in Sinaloa. ON DEALS AND CORPORATE ISSUES, Pantera Silver amended the terms on the acquisition of the Nuevo Taxco project in Guerrero. Bear Creek Mining announced the appointment of directors of the company. Gold Resource is reviewing its strategic alternatives, including the potential sale of the company. Minaurum Gold announced the appointment of Rubén Padilla to the board of directors. Osisko Development is waiting for mining permits at San Antonio, in Sonora.  ON SOCIAL RESPONSIBILITY, Argonaut Gold, SilverCrest Metals and Avino Silver presented information on their impact on communities.

ON MEXICO ISSUES

  • Ganfeng Lithium Company is trying to negotiate with the Mexican government the recent cancellation of its mining concessions in Sonora.

ON EXPLORATION

  • Radius Gold Inc. provided an update of drilling at its Tropico project in Zacatecas. The company completed an initial 1,300 m diamond drill program in eight holes, with assays received for the first seven holes. Drilling is planned to resume upon the receipt of remaining assays. Highlighted core length results comprise 29.18 m @ 0.34 gpt Au, 4 gpt Ag; 30.10 m @ 0.35 gpt Au, 3 gpt Ag; 44.20 m @ 0.28 gpt Au, 2 gpt Ag; 28.52 m @ 0.28 gpt Au, 3 gpt Ag; 36.25 m @ 0.55 gpt Au, 9 gpt Ag (including 7.52 m @ 1.40 gpt Au, 29 gpt Ag); 12.30 m @ 0.44 gpt Au, 3 gpt Ag. “The expected hydrothermal breccia pipe was not found vertically below the sinter as predicted by the geophysics, instead is rather un-expectedly dipping at 45o east and has now been defined under soil cover 200m to the east of the outcropping target”.
  • Mammoth Resources Corp. announced results from bottle roll tests performed on three composite samples of assay reject sample material of drill holes from the Carneritos area of its Tenoriba property in Chihuahua. Results from oxide material reached 92% and 88% dissolution Au and 55% Ag in 12 hours and 94% and 91% Au, 59% Ag after 96 hours. Results for the oxidized-sulfide transition material reached 72% Au, 61% Ag in 12 hours and 75% Au, 64% Ag in 96 hours. “Based on the success from these initial bottle roll tests, Mammoth has commenced testing a coarser fraction of the oxidized and mixed oxidized-sulfide zone material and preliminary tests of a sulfide sample and looks forward to reporting on these results in the near future”.   

ON MINING

  • Capstone Copper Corp. reported financial results for Q3 2023, including figures from its Mexican operations. Of a consolidated production of 40.3 K tonnes Cu during the quarter, 5.9 K tonnes were produced at Cozamin, in Zacatecas, at $1.85 cash cost per Lb Cu. “Q3 2023 infill drilling at the Mala Noche Main Vein West Target was on hold while the development of the lower elevation mine cross-cut was completed. Infill drilling will recommence in early Q4 2023 to support an updated mineral resource estimate in 2024”.
  • Endeavour Silver Corp. announced financial and operating results for Q3 2023. Consolidated production at the Bolañitos (Guanajuato) and Guanaceví (Durango) mines during the quarter of 1.46 M Oz Ag, 9,089 Oz Au (1.87 M Oz AgEq) at cash cost $17.94 per Oz Ag and ASIC of $24.10 per Oz Ag. “Cost metrics were significantly impacted by lower production at the Guanaceví mine and increased operating development resulting from mine sequencing changes required to focus on improved access and ventilation as well as plant maintenance required during the last week of September”. Cash position of $41 M and working capital of $75.9 M by the end of the period. During the quarter $23.4 M were raised, primarily to fund the Terronera mine construction.
  • Gold Resource Corp. presented operational results for the year to date from its Don David mine in Oaxaca. A total of 14,777 Oz Au, 778 K Oz Ag, 8,772 tonnes Zn, 904 tonnes Cu, 3,681 tonnes Pb were produced on the year to date at total cash cost after co-product credits of $1,389 per Oz AuEq on the last quarter. At the quarters end the company had a cash balance of $6.7 M with no debt and working capital of $13.8 M.
  • Pan American Silver Corp. reported results for the third quarter 2023, without disclosing production figures by project. The company produced 5.7 M Oz Ag, 244.2 K Oz Au, with a silver segment cash cost of $13.13 and an AISC of $18.19, to end the period with $832.1 M, inclusive of cash and investments of $386 M, a $750 M revolving line of credit and $809 M of total debt primarily related to the acquisition of Yamana. At La Colorada, in Zacatecas, “the Company invested $14.0 million of project capital in Q3 2023 to advance the La Colorada Skarn project, largely for exploration and the preliminary economic study underway, as well as advancing the excavation of the concrete-lined ventilation shaft”. The preliminary economic study for the project is to be released by year-end 2023.
  • Aura Minerals Inc. filed consolidated financial statements for the period ended on September 30th 2023. Consolidated production from all its mines reached 64,875 Oz AuEq, of which 27,933 Oz AuEq were produced at Aranzazu, in Zacatecas. The AISC of consolidated production was $1,437 per Oz Au. Aura Minerals ended the quarter with a cash balance of $179 M and a net debt of $112.1 M.
  • Gatos Silver Inc. announced third quarter 2023 financial and operating results. The company has a 70% interest in the Cerro Los Gatos mine in Chihuahua, which processed 268.3 K tonnes at a rate of 2,916 tpd, averaging 0.30 gpt Au, 285 gpt Ag, 1.84% Pb, 3.82% Zn, to produce 1.28 K Oz Au, 2.22 M Oz Ag, 9.5 M Lb Pb, 13.8 M Lb Zn, or 3.46 M Oz AgEq at co-product cash cost of $14.42 and a co-product AISC of $17.64 per Oz AgEq. As of October 31, 2023, the company had $57.7 M in cash, no debt and a $50 M revolving credit facility available.
  • Fortuna Silver Mines Inc. reported financial and operating results for the third quarter 2023. The company consolidated production from its operations in several countries was 94,821 Oz Au, 1.68 M Oz Ag. At the San Jose mine in Oaxaca, 247.5 K tonnes were processed at a rate of 2,845 tpd, grading 189 gpt Ag, 1.14 gpt Au, recovering 91% Ag, 91% Au, to produce 1.37 M Oz Ag, 8,205 Oz Au, at a cash cost of $13.84 per Oz AgEq and an AISC of $18.04 per Oz AgEq. Infill drilling led to the discovery of the Yessi vein, a blind structure 200 m horizontally from existing underground infrastructure, with highlighted true width intercepts of 9.9 m @ 1,299 gpt AgEq and 5 m @ 621 gpt AgEq.
  • SilverCrest Metals Inc. released its financial results for the third quarter of 2023 and expanded on October 2023 operational results from Las Chispas mine, in Sonora. During the period the company mined 83,800 tonnes, processing 114,500 tonnes at a daily rate of 1,245 tpd, averaging 4.35 gpt Au, 413 gpt Ag, recovering 98.3% Au, 98.1% Ag to produce 15,700 Oz Au, 1.49 M Oz Ag at cash cost $6.53 per Oz AgEq and an AISC of $12.23 per Oz AgEq. During the quarter 14,183 m of exploration drilling was completed, 83% in resource conversion and the rest in new vein targets, at a cost of $2.8 M. By the end of the Period SilverCrest held 70.0 M in cash and 11.7 M in bullion.
  • Coeur Mining Inc. reported third quarter 2023 financial results including figures from its operations in Mexico. At Palmarejo, in Chihuahua, 501.7 K tonnes were milled, averaging 1.71 gpt Au, 114.1 gpt Ag, recovering 97.6% Au, 86.9% Ag to produce 26,870 Oz Au, 1.60 M Oz Ag at CAS of $917 per Oz Au and CAS of $15.56 per Oz Ag. “The focus of exploration has transitioned from primarily mapping and sampling to more intensive drilling from four rigs during the quarter compared to one rig in the previous quarter…. focused on finding the intersection of structures where there is potential for a higher-grade shoot”. During the period Palmarejo apported 34% of the gold and 69% of the silver produced by Coeur, at the lowest costs per ounce. Full-year production is expected be 100 to 112.5 K Oz Au, 6.5 to 7.5 M Oz Ag at Palmarejo. Coeur ended the quarter with $53 M in cash and $220 M available capacity under its $390 M revolving credit facility and $7 M of marketable securities.
  • Avino Silver & Gold Mines Ltd. released consolidated financial results for the third quarter 2023. At the Avino mine in Durango, 154.5 K tonnes were milled to produce 237 K Oz Ag, 2,077 Oz Au, 1.14 M Lb Cu, or 591.2 K Oz AgEq at cash cost $16.90 per Oz AgEq. Recent deep drilling indicates that “The vein system continues to be open along strike and at depth”.  At the end of the period Avino had $1.85 M in cash and $7.44 M in working capital.
  • Golden Minerals Co. released financial results and business summary for the quarter ending on September 30, 2023. The company is working on “permitting, equipment readiness, arrangements with union staff, contract miners, plant operators and support personnel. The Velardeña mines last operated in November 2015”. Also during the period a PEA report for the Velardeña properties in Durango was filed. Mining activities were concluded at Rodeo, in Durango in June 2023, and continued processing stockpiled material until August, with the pouring of the last doré in September. At the end of the period Golden Minerals held $1.6 M in cash and no debt.
  • MAG Silver Corp. announced unaudited financial results for Q3 2023. At Juanicipio (Fresnillo PLC 56% / MAG Silver 44%) in Zacatecas, 313.1 K tonnes were mined, 322.2 K tonnes processed @ 523 gpt Ag, 1.32 gpt Au, 1.33% Pb, 2.25% Zn, to produce 4.29 M Oz Ag, 7.76 K Oz Au, 7.69 M Lb Pb, 9.59 M Lb Zn at cash cost $4.68 per Oz Ag and an AISC of $9.19 per Oz Ag. The Juanicipio processing facility has achieved nameplate capacity, with Ag recovery above 88%. By the end of the period MAG held working capital of $55.1 M, including cash of $58.5 M and no long-term debt.

ON FINANCING

  • Tocvan Ventures Corp. announced the incoming closing a non-brokered private placement for gross proceeds of up to CAD$500 K (Pilar, Sonora).
  • Golden Minerals Co. announced and closed during the week a public offering, raising US$4.2 M (Velardeña, Durango).
  • Minaurum Gold Inc. granted 1.75 M common share stock options to directors, officers and consultants (Alamos Silver, Sonora).
  • Kootenay Silver Inc. announced that the 10 to 1 consolidation of the outstanding common shares of the company will be made effective on November 14, 2023 (Columba, Chihuahua).

ON RESOURCES AND DEVELOPMENT

  • Heliostar Metals Ltd. reported results from two diamond drill holes at the Parallel Panel target at the Ana Paula project in Guerrero. This target is 50 m north of the High Grade Panel, and was identified over the last few months. Highlighted core length intervals comprise 14.75 m @ 5.06 gpt Au (including 5.3 m @ 11.7 gpt Au); 18.1 m @ 2.3 gpt Au; 147.05 m @ 4.13 gpt Au (including 16 m @ 11.2 gpt Au and 7.0 m @ 14.5 gpt Au and 8.6 m @ 8.70 gpt Au). “The new holes demonstrate good continuity of width and grade within the Parallel Panel”.
  • Prime Mining Corp. reported expansion drilling results from Los Reyes project in Sinaloa. Highlighted true width intervals comprise 20.10 m @ 2.11 gpt Au, 29 gpt Ag (including 6.30 m @ 5.74 gpt Au, 43 gpt Ag); 5.50 m @ 1.06 gpt Au, 73 gpt Ag (including 1.80 m @ 2.57 gpt Au, 79 gpt Ag); 4.45 m @ 1.04 gpt Au, 8 gpt Ag (including 1.00 m @ 3.26 gpt Au, 20 gpt Ag). “Today’s results, along with previously released holes in this area, have extended mineralization approximately 250m down-dip from the May 2023 resource pits”. There are now six rigs operating at Los Reyes, extending the high-grade Z-T area shoots at depth and along strike, expanding the two other resource areas and exploring new generative targets. “Prime has completed over 48,000 m of its planned 60,000 m 2023 drill program”.

ON DEALS AND CORPORATE ISSUES

  • Pantera Silver Corp. amended the terms of the Nuevo Taxco option agreement to acquire the 1,100-ha project in Guerrero. Under the new terms Pantera is to issue 1.5 M shares in lieu of making a final cash $150 K payment. A final 2 M shares payment will be due on October 30th, 2024 and under the amended terms the vendor has the option to accept the 2 M shares or $150 K cash plus 500 K shares. The final $800 K work commitment has been extended to be competed before the end of 2025.
  • Bear Creek Mining Corp. announced the appointment of Ms. Sandra Daycock Ms. Susan Toews as directors of the company, and Mr. Brian Peer to the position of Chief Operating Officer (Mercedes, Sonora).
  • Gold Resource Corp. presented a review of strategic alternatives. “Notwithstanding the technical successes …… in light of the continued challenges facing the Company, the Company’s Board of Directors has decided to initiate a formal review process, with the assistance of outside financial and legal advisors, to evaluate strategic alternatives for the Company. The comprehensive process will begin immediately and will evaluate a broad range of options to maximize shareholder value, including a potential sale of the Company”.
  • Minaurum Gold Inc. announced the appointment of Dr. Ruben Padilla, PhD to the board of directors (Alamos Silver, Sonora).
  • Osisko Development Corp. presented its third quarter 2023 report, with a few lines on the San Antonio project in Sonora. The company produced 13,591 Oz Au from the San Antonio heap leach since commencing processing of stockpiled inventory in Q1 2022. During Q3 production from the remaining stockpile inventory was completed, with no further production envisaged. “The Company awaits next steps from the government of Mexico with respect to the permitting process”.

ON SOCIAL RESPONSIBILITY

  • Argonaut Gold Inc. released its 2022 Environmental, Social, and Governance (ESG) Report and ESG strategy. For the first time released detailed energy and climate, water management, and biodiversity, with a water recycling rate of 91% on all its mines. Company-wide the Lost Time Injury Rate was lowered from 0.32 in 2021 to 0.07 in 2022. Zero operational disruptions due to labor or community issues.
  • Silver Crest Metals Inc. signed “a collaboration agreement with Comisión Estatal del Agua (CEA) and the municipality of Arizpe to work on agriculture infrastructure, sewage system and water concessions for agricultural use for the local communities”.
  • Avino Silver & Gold Mines Ltd. currently holds “448 direct jobs at the mine, which has increased substantially since the restart of operations in 2021, which typically translates to 3 times the number of indirect jobs for services, consultants and suppliers in the surrounding communities and the Durango area”.  

On the image below: Geologist Julio Carcamo in a Sonoran Desert project. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the First Week of November, 2023

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Fault plane showing slickensides

By Miguel A Heredia

During the 44th week of the year (October 30th to November 5th, 2023), at least 26 press releases were announced by companies working in Mexico, and 1 news published by the media, with nine reporting resources and developments of their properties, five disclosing deals and corporate issues, four communicating production results, three, announcing financing issues, three informing on exploration results, two commenting on Mexican issues, and one discussing social issues. ON MEXICO ISSUES, The Tax Administration Service (SAT) has collected MXP $65,981M (about USD $3,665M) in this six-year term from the mining companies. Regency Silver reported their best drilling intercepts in Mexico on the first week of November, 2023. ON EXPLORATION, In Sonora, Aztec commenced a RC drilling program at its Cervantes project. In Chihuahua, Kingsmen reported results from its ongoing surface sampling program in the southeast part of the Las Coloradas project. Durango, Silver Wolf received the exploration diamond drilling permit for its Ana Maria project. ON MINING, Americas Gold and Silver reported Q3, 2023 production results from its Cosala Mine Complex, Sinaloa. Avino announced that it will be reporting Q3, 2023 production and financial results from its Avino Mine, Durango on November 8, 2023. Sierra Metals also notified that it will be presenting Q3, 2023 results from its Bolivar Mine in Chihuahua on November 13, 2023. First Majestic reported Q3, 2023 production and financial results from their Mexican operations. ON FINANCING Minera Alamos signed definitive documentation for its Cerro de Oro construction financing package for up to USD $25M. Silver Bull announced non-brokered private placement for gross proceeds of CAD $1,285,350 (Sierra Mojada project, Coahuila). First Majestic declared a cash dividend payment in the amount of $0.0046 per common share for the third quarter of 2023.Minaurum closed a non-brokered private placement for gross proceeds of CAD $800,250 (Alamos Silver project, Sonora). ON RESOURCES AND DEVELOPMENT, Atacama Copper and TCP1 announced a maiden resource estimate for theirs Cristina and Yécora projects located in Chihuahua and Sonora respectively. Torex provided a Q3, 2023 update on its Media Luna project, Guerrero. Silver Tiger filed a technical report to announce an updated mineral resource estimate at its El Tigre project, Sonora.  Silver Tiger announced a Preliminary Economic Assessment (PEA) on its El Tigre project, Sonora. Golden Tag released first results from its drill program at its La Parrilla Mine, Durango. Regency Silver announced results from hole REG-23-21 collared at its Dios Padre project, Sonora. Sierra Madre presented its first project-wide resource estimate for its La Guitarra Mine, State of Mexico. Guanajuato Silver filed a National Instrument 43-101 Technical Report for a new Mineral Resource Estimate (MRE) for its San Ignacio Mine, Guanajuato. ON DEALS AND CORPORATE ISSUES, Fortuna Silver reported that the Mexican Federal Administrative Court has ruled in favour of Minera Cuzcatlan, Fortuna’s Mexican subsidiary, and re-instated the 12-year environmental impact authorization (EIA) for the San Jose Mine, Oaxaca. Monumental Minerals announced the resignation of its CEO, effective October 30, 2023 (Jemi rare Earth Element project, Coahuila).  Golden Tag announced name change to Silver Storm Mining Ltd, being approved later on by shareholders, its Board of Directors and the Toronto Stock Exchange (TSX) (La Parrilla Mine, Durango).  Sonoran Desert filed documents with the TSX seeking approval for consolidation of common shares (Cuatro Hermanos project, Sonora).  ON SOCIAL RESPONSIBILITY, Fernando Alanís, general director of Baluarte Minero, a unit within Industrias Peñoles, the world’s largest producer of refined silver, stated that the investment funds prioritize the ESG criteria of mining companies, because their implementation creates certainty.

ON MEXICO ISSUE

  • The Tax Administration Service (SAT) has collected MXP $65,981M (about USD $3,665M) in this six-year term from the mining companies. It is 11 times more than with the former government. The Tax Administration Service has explained that the MXP $65,981M is the result of the 2023 Master Plan and 307 audits completed.
  • Regency Silver Corp., reported their best drilling intercepts in Mexico on the first week of November, 2023. Details are shown in the table below:

ON EXPLORATION

  • Aztec Minerals Corp., commenced a RC drilling program at its Cervantes project in Sonora. “The drill program has been optimized to focus on expanding the California zone oxide mineralization, which remains open laterally in every direction, with a minimum 11 holes and 1,600m RC drilling in this current stage of exploration”.
  • Kingsmen Resources Ltd., reported results from its ongoing surface sampling program of old workings along the Soledad and Soledad II structures and their subsidiary structures in the southeast part of the Las Coloradas project, in Chihuahua. Twenty samples were collected with one returning > 400 g/t Ag; one returning > 300 g/t Ag; one returning >200 g/t Ag; and one returning > 100 g/t Ag. Three areas with high grade have been identified. Prospecting and sampling continues.
  • Silver Wolf Exploration Ltd., received from the Secretariat of Environment and Natural Resources (SEMARNAT), the exploration diamond drilling permit for the southern El Soldado claim at its Ana Maria project, Durango. The company has designed a drilling program for up to 4,800m over 16 holes.

ON MINING

  • Americas Gold and Silver Corporation reported Q3, 2023 production results from its Cosala Mine Complex, Sinaloa. The company produced 178K Oz Ag, 2.8M Lb Pb, and 9M Lb Zn.
  • Avino Silver and Gold Mines Ltd., announced that it will be reporting Q3, 2023 production and financial results from its Avino Mine, Durango on November 8, 2023.
  • Sierra Metals Inc., also notified that it will be presenting Q3, 2023 results from its Bolivar Mine in Chihuahua on November 13, 2023.
  • First Majestic Silver Corp., reported Q3, 2023 production and financial results from their Mexican operations. Table below shows results by mine:

ON FINANCING

  • Minera Alamos Inc., signed definitive documentation for its Cerro de Oro construction financing package for up to USD $25M with Auramet International Inc., and Auramet Capital Partners LP  which is comprised of a loan facility for up to USD $15M and a USD $10M royalty. Upon execution of the Cerro de Oro Financing Documents, the company also completed a drawdown of an initial USD $5M under the loan facility to advance certain pre-construction work related to the Cerro de Oro project, Zacatecas.
  • Silver Bull Resources Inc., announced non-brokered private placement issuing a fully subscribed 11,685,000 units at a price of CADS $0.11 per unit for gross proceeds of CAD $1,285,350. Gross proceeds will be used for general working capital and corporate purposes, including investigation and potential acquisition of additional exploration projects (Sierra Mojada project, Coahuila).
  • First Majestic Silver Corp., declared a cash dividend payment in the amount of $0.0046 per common share for the third quarter of 2023. The third quarter cash dividend will be paid to holders of record of First Majestic’s common shares as of the close of business on November 15, 2023, and will be distributed on or about November 30, 2023.
  • Minaurum Gold Inc., closed a non-brokered private placement for gross proceeds of CAD $800,250. The company will use the net proceeds for exploration of the Alamos Silver project, Sonora, and for general working capital purposes.

ON RESOURCES AND DEVELOPMENT

  • Atacama Copper Corporation and TCP1 Corporation announced a maiden resource estimate for theirs Cristina and Yécora projects located in Chihuahua and Sonora respectively. At Cristina project, Chihuahua, the companies estimated indicated resources of 17.5M tonnes of 0.51g/t Au, 34 g/t Ag, 0.5% Zn, 0.2% Pb, and 0.04% Cu (1.33 g/t AuEq) for a contained 752K Oz AuEq, and Inferred resources of 19M tonnes of 0.51 g/t Au, 27 g(/t Ag, 0.5% Zn, 0.2% Pb, and 0.05% Cu (1.27 g/t AuEq) for a contained 777K Oz AuEq.  The resource estimate is based on 220 diamond drill holes completed between 2010 and 2022 for approximately 70,000 m of drilling in total. Preliminary metallurgical test work suggests recoveries into concentrate of 75-85% for gold, 85-95% for silver, 80-90% for zinc and lead, and 70-80% for Cu. At Yécora project, Sonora, the companies estimated indicated resources of 25M tonnes of 0.30% Cu, 28 g/t Ag, and 749ppm Mo (0.79% CuEq9 for a contained 444M Lb CuEq, and inferred resources of 11.2M tonnes of 0.30% Cu, 24 g/t Ag, and 831 ppm Mo (0.78% CuEq for a contained 193M Lb CuEq. The resource estimate is based on 34 diamond drill holes and 8 reverse circulation drill holes completed between 2014 and 2022 for 14,006 m of drilling in total. Preliminary metallurgical test work projected a copper concentrate grade of 20-25% with a recovery of approximately 90% and containing 75 to 85% of the silver. The molybdenum concentrate grade was projected to be 50-55% with a recovery of 80 to 90%. Future testing will determine the feasibility of recovering lead and zinc to a separate concentrate, and thus zinc and lead were not included in the current resource estimate.
  • Torex Gold Resources Inc., provided a Q3, 2023 update on its Media Luna project, Guerrero. “Development of Media Luna continues to track well to plan, with first concentrate production remaining on track for late 2024 and commercial production in early 2025. At quarter-end, the Media Luna Project was 49% complete across engineering, procurement, underground development/construction, and surface construction. With 68% of upfront expenditures committed (including 42% incurred), expenditures to date have tracked reasonably well to the initial budget of $875 million, noting the stronger Mexican peso remains a headwind to manage. With $242 million incurred on the project year-to-date, project spending in 2023 is tracking toward the lower end of the annual guided range of $390 million to $440 million. Solid progress was made with respect to underground development and construction, which included another notable quarter of advance in the schedule-critical Guajes Tunnel and mobilization of the underground construction contractor. Breakthrough of the Guajes Tunnel is expected by year-end, three months ahead of schedule.  Significant progress was also made on the engineering front, which is expected to drive increased procurement activity through year-end. Surface construction continued with pad and foundation preparation for several key areas advanced during the quarter. The pace of construction is set to pick up in Q4 as concrete works ramp up, larger equipment deliveries to the south side commence with the completion of the Mazapa bypass road, and steel erection at the flotation plant begins before year-end.  The Media Luna Project is now soundly at the halfway mark and tracking to schedule and budget. With solid ongoing cash flow from El Limón Guajes and a healthy balance sheet with strong liquidity, we remain well positioned to execute on the remainder of the development plan over the next 15 months.”
  • Silver Tiger Metals Inc., filed a technical report to announce an updated mineral resource estimate (MRE) at its El Tigre project, Sonora. Table below shows the updated MRE for El Tigre project, Sonora:

In addition to the exploration work completed at El Tigre project, an exploration target was established as follows: 7 to 9M tonnes at 3.0 to 3.5 g/t AuEq for 675K Oz to 1M Oz AuEq.

  • Silver Tiger Metals Inc., announced a Preliminary Economic Assessment (PEA) on its El Tigre project, Sonora. Highlights of the PEA, with a base case silver price of $23.75/Oz and gold price of $1,850/Oz include an after-tax net present value (NPV) (using a discount rate of 5%) of  USD $287M with an after-tax IRR of 55.8% and payback period of 1.7 years (base case); 13-year mine life recovering a total of 60M payable AgEq or 776K Oz AuEq, consisting of 16M Oz Ag and 571K Oz Au; total project undiscounted after tax cash flow of USD $445M; initial capital costs of USD $59M, including USD $7.7M in contingency costs, over an expected 12-month build, expansion capital of USD $33M and sustaining capital costs of USD $31M over the life of mine (LOM); average LOM operating cash costs of USD $803/Oz AuEq, and all in sustaining costs (AISC) of USD $843/Oz AuEq or average LOM operating cash costs of USD $10/Oz AgEq, and AISC of USD $11/Oz AgEq; and average annual production of approximately 4.6MOz AgEq or 59,000 Oz AuEq.
  • Golden Tag Resources Ltd., released first results from its diamond drilling program at its La Parrilla Mine, Durango. Drilling highlights include hole Q-23-001 with 65 g/t Ag, 0.16 g/t Au, 1.3% Pb, 3.5% Zn, and 0.05% Cu (206 g/t AgEq) over 5.20m, including 145 g/t Ag, 0.11 g/t Au, 2.4% Pb, 2.9% Zn, and 0.08% Cu (299 g/t AgEq) over 1.64m, including 51 g/t Ag, 0.39 g/t Au, 1.4% Pb, 7.6% Zn, and 0.06% Cu (328 g/t AgEq) over 1.60m; hole Q-23-003 with 125 g/t Ag, 0.25 g/t Au, 3% Pb, 5.7% Zn, and 0.08% Cu (381 g/t AgEq) over 0.88m, plus 43 g/t Ag, 0.03g/t Au, 0.8% Pb, 8.6% Zn, and 0.18% Cu (300 g/t AgEq) over 0.32, plus 90 g/t Ag, 0.3 g/t Au, 0.7% Pb, 10.3% Zn, and 0.07% Cu (414 g/t AgEq) over 0.84m; and hole Q-23-005 with 124 g/t Ag, 0.61 g/t Au, 0.6% Pb, 0.3% Zn, and 0.27% Cu (198 g/t AgEq) over 1.87m, plus 76 g/t Ag, 0.32 g/t Au, 0.3% Pb, 4.2% Zn, and 0.18% Cu (225 g/t AgEq) over 1.52m, plus 29 g/t Ag, 0.08 g/t Au, 0.1% Pb, 4.9% Zn, and 0.11% Cu (172 g/t AgEq) over 0.97m. With these drill results Golden Tag extended the C460B Zone 110m at depth in La Parrilla Mine Complex, Durango.
  • Regency Silver Corp., announced results from hole REG-23-21 collared at its Dios Padre project, Sonora. It intersected 0.61 g/t Au over 9.5m, plus 5.34 g/t Au over 54.65m, including 7.36 g/t Au over 38m, including 8.7 g/t Au over 28.9m, and plus 0.95 g/t Au over 7.9m. “The 2023 drill campaign consisted of 6105.25m in 10 holes.  8 of the 9 holes targeting the lower Dios Padre breccia zone intersected mineralized pyrite-specularite breccia and confirm the mineralized breccia zone has a strike of at least 180m and depth extent of at least 150m while the breccia remains open both along strike, up-dip towards the old silver mine, and at depth”.
  • Sierra Madre Gold and Silver Ltd., presented its first project-wide resource estimate for its La Guitarra Mine, State of Mexico. The company reported indicated resource of 3,482,000 tonnes of 146 g/t Ag and 0.96 g/t Au (220 g/t AgEq) for a total of 18,073,000 Oz Ag and 118K Oz Au (27,207,000 Oz AgEq) contained and inferred resources of 4,105,000 tonnes of 113 g/t Ag and 0.52 g/t Au (153 g/t AgEq) for a total of 14,937,000 Oz Ag and 68,000 Oz Au (20,199,000 Oz AgEq) contained.
  • Guanajuato Silver Company Ltd., filed a National Instrument 43-101 Technical Report for a new Mineral Resource Estimate (MRE) for its San Ignacio Mine, Guanajuato. Table below shows the new MRE for San Ignacio Mine, Guanajuato (Effective date September 21, 2023):

ON DEALS AND CORPORATE ISSUES

  • Fortuna Silver Mines Ltd., reported that the Mexican Federal Administrative Court has ruled in favour of Minera Cuzcatlan, Fortuna’s Mexican subsidiary, and re-instated the 12-year environmental impact authorization (EIA) for the San Jose Mine, Oaxaca. “The San Jose Mine is in full compliance with all material environmental laws and continues to operate under the terms of the EIA. The decision of the Court is subject to appeal by the Secretaria de Medio Ambiente y Recursos Naturales (SEMARNAT), and if appealed, the permanent injunction that the company already has will remain in effect”.
  • Monumental Minerals Corp., announced the resignation of its CEO, effective October 30, 2023 (Jemi rare Earth Element project, Coahuila).
  • Golden Tag Resources Ltd., announced name change to Silver Storm Mining Ltd, being approved later on by shareholders, its Board of Directors and the Toronto Stock Exchange (TSX). the Company’s shares will commence trading on the TSXV, the OTCQB Exchange, and Frankfurt Stock Exchange under Silver Storm Mining Ltd. effective at the opening of trading on or about November 7,2023, and will trade on the TSXV under the new symbol (TSXV: SVRS) on the OTCQB under the symbol (OTCQB: SVRSF) and on the FSE under the symbol (FSE: SVR) (La Parrilla Mine, Durango).
  • Sonoran Desert Copper Corporation filed documents with the TSX seeking approval for consolidation of the outstanding common shares of the company, on the basis of one post-consolidation common share for every four pre-consolidation common shares. The common shares will continue trading on the TSX Venture Exchange on a post-consolidation basis under the name Sonoran Desert Copper Corporation and the trading symbol SDCU (Cuatro Hermanos project, Sonora).

ON SOCIAL RESPONSIBILITY

  • Fernando Alanís, general director of Baluarte Minero, a unit within Industrias Peñoles, the world’s largest producer of refined silver, stated that the investment funds prioritize the ESG criteria of mining companies, because their implementation creates certainty. He gave three examples of this: the payment of taxes, the accident rate and development in mining communities. More and more investors and financial institutions are using ESG or sustainability scores, ratings and benchmarking studies provided by various organizations that evaluate corporate performance and governance related to environmental and social issues, including climate change, when making their financing and voting decisions.

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

On the picture above, a fault plane showing slickensides in an epithermal vein system in a prospect in Chihuahua, Mexico. Photo by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the Fourth Week of October 2023

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By Jorge Cirett                                             

During the 43rd week of the year (October 23rd to October 29th, 2023), 22 companies working in Mexico posted news releases. One company reported exploration on one of its properties, five companies released Q3 2023 results and one announced new production from a recently acquired mine. One company informed on the closing of a financing round and one other the sale of more than 10% of its shares by another company.  Three companies released drilling results from their advanced projects, one on the doubling of processing capacity, one the results of an FS on its advanced property, one offered an update on construction of a new mine and another one presented a PEA on its advanced project. One company updated on the acquisition process of a property and four more on director’s appointments and results of their AGM’s. ON MEXICO ISSUES, The AIMMGM Convention in Acapulco, the biggest Mining event in Mexico held every two years, was cancelled after its opening, as the city received overnight the direct impact of a category five hurricane. ON EXPLORATION, In Sonora, Tocvan Ventures started the environmental permitting process at Pilar. ON MINING, Agnico Eagle Mines, Alamos Gold, MAG Silver, Fresnillo PLC and Newmont presented Q3 2023 production results. Impact Silver started production at the Plomosas mine in Chihuahua. ON FINANCING, Avino Silver informed Coeur Mining is to sell more than 10% of its stock. Regency Silver completed its financing round.  ON RESOURCES AND DEVELOPMENT, Vizsla Silver, Gatos Silver and Endeavour Silver reported drilling results from the Panuco, Cerro Los Gatos and Parral properties respectively. Luca Mining is expanding the Tahuehueto plant to double production. Discovery Silver presented results from a feasibility study on its Cordero project. Endeavour Silver provided a Q3 construction update on the Terronera project. GoGold Resources presented the results of a preliminary economic assessment (PEA) on its Los Ricos South project. ON DEALS AND CORPORATE ISSUES, Defiance Silver and Chesapeake Gold announced officer’s appointments. Excellon Resources rescheduled its AGM and Fabled Silver updated on the agreement to acquire the Mecatona project from Kootenay. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

ON EXPLORATION

  • Tocvan Ventures Corp. started the environmental permitting process of its Pilar project in Sonora. A detailed UAV LiDAR survey across Pilar and the newly acquired ground. The expansion area covers 21.7 square km, and the study is to provide high-resolution surface modelling.

ON MINING

  • Impact Silver Corp. announced the first production by the company at the recently acquired Plomosas mine in Chihuahua. The company did “an extensive rehabilitation and upgrade program at the site, including inside the mine, at the mill and on all associated mobile equipment and infrastructure”. The first concentrate shipment was sent to the smelter. Impact is to seek 200 tpd processing in H1/2024.
  • Agnico Eagle Mines Ltd. informed that during Q3 2023 “Minera de San Nicolás, which is jointly owned by the Company and Teck Resources Limited, continued to work on the feasibility study at San Nicolás in Zacatecas State, Mexico, and stakeholder engagement on the permitting process”. At Pinos Altos, in Chihuahua, 450 K tonnes were milled at 4,891 tpd, averaging 1.84 gpt Au, to produce 25,386 Oz Au at $1,581 per Oz Au and a total cash cost of $1,310 per Oz Au. At La India, in Sonora, 970 K tonnes were milled at 10,543 tpd, averaging 1.1 gpt Au, at a production cost of $1,271 per Oz Au and a total cash cost of $1,156 per Oz Au.
  • Alamos Gold Inc. reported financial results for the third quarter 2023. At the Mulatos district in Sonora 53,900 Oz Au were produced at mine-site cash cost $898 per Oz Au and a mine site AISC of $1,045 per Oz Au. At La Yaqui Grande open pit, 918 K tonnes of ore were mined, 5.72 M tonnes of waste moved with a waste to ore ratio of 5.0, crushing 10,300 tpd, with 948.4 K tonnes staked averaging 1.50 gpt Au, with 45,722 Oz Au staked and an average recovery rate of 84%. At the Mulatos open pit, 80.9 K tonnes of ore were mined, 130.5 K tonnes of waste moved with a waste to ore ratio of 1.61, crushing 11,800 tonnes per day, stacking 1.08 M tonnes averaging 1.55 gpt Au, to stake 53,923 Oz Au with an average recovery rate of 29%. “Production is expected to decrease in the fourth quarter reflecting the depletion of the Mulatos pit and a decrease in grades at La Yaqui Grande”.
  • MAG Silver Corp. reported Q3 2023 production from Juanicipio (56%/44% Fresnillo/MAG) in Zacatecas. “Ramp up of the Juanicipio plant continued to be the focus during the quarter with the plant reaching its target milling rate of 4,000 tonnes per day (“tpd”) in September”. During the period 322.2 K tonnes were processes, grading 1.32 gpt Au, 523 gpt Ag, to produce 9,444 Oz Au, 4.78 M Oz Ag.
  • Fresnillo Silver PLC. reported Q3 2023 production results. During the period 13.4 M OZ were produced, 0.67 M Oz from silverstream for a total of 14.1 M Oz Ag, 132,627 Oz Au, 14,575 tonnes Pb, 29,073 tonnes Zn, from the Fresnillo, Saucito, Pyrites Plant, Ciénega, San Julian Veins, San Julian DOB, Herradura, Nochebuena and Juanicipio (56%/44% Fresnillo/MAG Silver).
  • Newmont Corp. announced third quarter 2023 results, with some comments on its Mexico operations. At Peñasquito, in Zacatecas, operations were suspended by a strike that was resolved after the quarter’s end, therefore there was no Au, Ag, Pb, Zn production.

ON FINANCING

  • Avino Silver & Gold Mines Ltd. announced that Coeur Mining Inc. will offer for sale up to 14 M common shares of Avino currently held by Coeur, for gross proceeds to Coeur of approximately US$7 M. Avino will not receive any proceeds form the secondary offering (Avino, Durango).
  • Regency Silver Corp. completed the final tranche of a previously announced non-brokered private placement, raising an upsized total of CAD$1.75 M (Dios Padre, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Vizsla Silver Corp. reported results from five new drill holes at its Panuco project in Sinaloa. Recent drilling intercepted the new El Molino vein, which is 250 m from the Copala resource area, and was discovered by a hole planned to condemn the area. Highlighted true width intercepts comprise 1.65 m @ 8.37 gpt Au, 1,552 gpt Ag, 0.5% Pb, 1.2% Zn; 1.10 m @ 0.62 gpt Au, 188 gpt Ag, 0.8% Pb, 2.5% Zn; 1.7 m @ 2.25 gpt Au, 1,000 gpt Ag, 0.3% Pb, 0.5% Zn; 4.15 m @ 0.96 gpt Au, 179 gpt Ag, 0.2% Pb, 4.4% Zn. “El Molino consists of alternating bands of quartz and sulfides (sphalerite, galena and acanthite), and shows similar vein textures to those observed at Napoleon and La Luisa veins”.
  • Gatos Silver Inc. updated on exploration at the Los Gatos district in Chihuahua. Resource definition drilling on the SE Deeps zone of the Cerro Los Gatos deposit returned good results highlighting true width intervals of 2.9 m @ 0.46 gpt Au, 550 gpt Ag, 0.30% Cu, 13.7% Pb, 24.5% Zn; 5.8 m @ 0.38 gpt Au, 44 gpt Ag, 1.13% Cu, 2.7% Pb, 2.5% Zn; 2.8 m @ 0.19 gpt Au, 140 gpt Ag, 0.47% Cu, 5.6% Pb, 17.1% Zn; 2.8 m @ 457 gpt Ag, 2.13% Cu, 2.8% Pb, 0.9% Zn; 7.6 m @ 0.58 gpt Au, 148 gpt Ag, 0.73% Cu, 1.9% Pb, 1.6% Zn; 1.22 gpt Au, 207 gpt Ag, 0.74% Cu, 10.1% Pb, 3.4% Zn. On district exploration, two holes were completed at the Santa Ana target and drilling started at Portigueño, detailed mapping and rock geochemistry were completed at the San Luis, El Valle and Lince areas and the first magneto-telluric survey was completed on an area of the Rio conchos basin, near Cerro Los Gatos.
  • Endeavour Silver Corp. reported drill results from last year’s (September 2022 to September 2023) drill program at its Parral project, in Chihuahua. Highlighted true width intercepts comprise 2.33 m @ 0.11 gpt Au, 508 gpt Ag, 0.4% Pb, 1.6% Zn (including 0.43 m @ 0.13 gpt Au, 1,405 gpt Ag, 0.4% Pb, 2.2% Zn); 2.50 m @ 0.28 gpt Au, 336 gpt Ag, 1.0% Pb, 2.5% Zn (including 0.29 m @ 0.40 gpt Au, 1,760 gpt Ag, 0.7% Pb, 4.0% Zn); 9.1 m @ 0.24 gpt Au, 74 gpt Ag, 0.8% Pb, 2.6% Zn); 3.89 m @ 0.30 gpt Au, 198 gpt Ag, 2.0% Pb, 7.3% Zn. Drilling has found mineralization in the Sierra Plata, El Verde and San Joaquín areas “and the extension of San Patricio vein system. All drilling was outside of the published mineral resource estimate and results are expected to grow the resource estimate”.
  • Luca Mining Corp. announced the expansion project to double throughput at its Tahuehueto mine in Durango is progressing according to plan. “The objective is to achieve an installed capacity of 1,000 tpd by year-end and announce commercial production in first quarter of 2024”. A second ball mill is now on site, and once commissioned the milling capacity will be of 1,250 tpd, while the flotation and concentrate filtration circuits already installed can handle 1,000 tpd. A second 500 tpd tailings filter press is soon to be transported.
  • Discovery Silver Corp. presented results from its feasibility study (FS) metallurgical test program from its Cordero project in Chihuahua. Highlights from the report include: Increase Ag recoveries of up to 7% to the precious metals concentrate, significant reduction in reagent consumption, excellent metallurgical performance for oxide-sulfide blending of up to 15% oxides, “Primary grind sensitivity confirmed a coarse grind size of 200 micron passing p80 is the optimal grind size” and the need of a smaller primary crusher.
  • Endeavour Silver Corp. provided a Q3 construction update for its Terronera project in Jalisco. Overall construction progress is 38% complete with more than $95 M spent to date. “The project remains on track and on budget for initial production in Q4 2024”. Total engineering progress is 97% complete, site road access is now established, all permanent camp dormitory units to accommodate 550 personnel have been installed. Mine development is to advance on four fronts (Portal 1 to 4), “Concrete work and rebar installation continued in the SAG and ball mill grinding, coarse ore stockpile and flotation areas, and concrete work began for the primary crusher” and most long-lead major equipment is to be received before year’s end.
  • GoGold Resources Inc. filed a NI 43-101 compliant preliminary economic assessment (PEA) for its Los Ricos South project in Jalisco. The base case scenario envisages US$23.75 per Oz Ag, US$1,850 per Oz Au, an after-tax net present value (NPV 5%) of US$458 M, with an after tax IRR of 37%, an 11-year mine life to produce 47 M Oz Ag, 493 K Oz Au (or 88 M Oz AgEq). An initial capital cost of $148 M and sustaining costs of $72 M over the mine life. The average LOM production cash cost is $8.15 per Oz Ag and an AISC of $9.02 per Oz Ag, to produce 8 M Oz AgEq per year with half of the production from long hole underground mining and half from open pit mining.

ON DEALS AND CORPORATE ISSUES

  • Defiance Silver Corp. announced the appointment of George Cavey to its board of directors, replacing Dunham L. Craig (Zacatecas project, Zacatecas).
  • Chesapeake Gold Corp. announced the appointment of Jean-Paul Tsotsos as interim Chief Executive Officer (Metates, Durango).
  • Excellon Resources Inc. rescheduled its annual and special meeting to November 23, 2023 (Evolución, Durango).
  • Fabled Silver Gold Corp. updated on the agreement with Kootenay Silver Inc. to acquire the Mecatona project, in Chihuahua. “The Company is still attempting to secure the funding required in order to complete the Proposed Transaction. The Company will provide a further update on the closing of the Proposed Transaction in due course”. The company received a six-month extension by the British Columbia Register of Companies and the Exchange.
  • Orogen Royalties Inc. re-elected all of its directors on the annual general meeting (Ermitaño, Sonora).

ON SOCIAL RESPONSIBILITY

  • No relevant news.

On the image below: Bleached and goethite-stained rocks in the Sonoran Desert. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the Third Week of October, 2023

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Cu mineralization in a Carbonate Replacement Deposit

By Miguel A Heredia

During the 42nd week of the year (October 16th to October 22nd, 2023), at least 27 press releases were announced by companies working in Mexico, and 1 news published by the media, with eight communicating production results, five informing on exploration results, five reporting resources and developments of their properties, four disclosing deals and corporate issues, three commenting on Mexican issues, two announcing financing issues, and one discussing social issues. ON MEXICO ISSUES, Newmont announced end of strike at its Peñasquito Mine in Zacatecas. Almaden reported on two recent court decisions, both relating to the submission issued by Mexico´s Ministry of Economy to the second district court in Puebla (Ixtaca project, Puebla). Prismo, Endeavour, and Kootenay reported the best drilling intercepts in Mexico on the third week of October, 2023. ON EXPLORATION, In Sonora, Aztec Minerals selected drill contractor and mobilized exploration crews to conduct an upcoming RC drilling program at its Cervantes project, Prismo reported results of the first holes ever drilled at its Los Pavitos project, Tocvan released first pass reconnaissance results from its Pilar expansion area, and Colibri provided an update on its exploration activities at their Pilar, EP, and Diamante projects. In Chihuahua, Kootenay announced results from its ongoing drilling program at its Columba project. ON MINING, Orla reported Q3, 2023 production results from its Camino Rojo project in Zacatecas. Equinox announced that it will present its Q3, 2023 financial and operating results on October 31, 2023 (Los Filos Mine, Guerrero). GoGold reported Q3, 2023 production results from its Parral Tailings project in Chihuahua and provided an update on its Parral Zn circuit. Santacruz reported Q3, 2023 production results from its Zimapan Mine in Hidalgo. Avino reported Q3, 2023 production results from its Avino Mine in Durango. Sierra Metals reported Q3, 2023 production results from their Bolivar and Cusi Mines in Chihuahua. Bear Creek reported Q3, 2023 production results from its Mercedes Mine in Sonora. ON FINANCING Sierra Madre announced the amendment of all 5,123,092 subscription receipts, in order to extend the escrow release conditions and termination (as both terms are defined in the May 31 and Sep 14 News Releases) for an additional 30-day period (La Guitarra Mine Complex, Estado de Mexico State). Bear Creek announced the issuance of promissory note to Equinox (Mercedes Mine, Sonora).  ON RESOURCES AND DEVELOPMENT, Sonoro filed a NI 43-101 technical report for a Preliminary Economic Assessment (PEA) on its Cerro Caliche project in Sonora.  Gold Resource announced preliminary Q3, 2023 production results from its Don David Gold Mine in Oaxaca. Sierra Madre announced that it has engaged Stantec Consulting International LLC to examine tailings deposition options at its La Guitarra Mine Complex in Estado de Mexico State. Endeavour released positive drill results from its ongoing drilling program being conducted at El Curso and Porvenir Dos Areas at its Guanacevi project in Durango. Oroco filed a Preliminary Economic Assessment (PEA) and updated Mineral Resource Estimate (MRE) for the North and South Zones of its Santo Tomas project in Sinaloa. Gatos Silver announced filing of updated technical report on its Cerro Los Gatos Mine, Chihuahua.  ON DEALS AND CORPORATE ISSUES, Goldgroup exercised its option to purchase all of the issued and outstanding common shares of Minera Cerro Esperanza S.A de C.V., which owns the Company’s previously held Cerro Prieto mining concessions, in Sonora. Vortex announced the attendance at the 121 Mining Investment Conference in New York (Riqueza Marina project, Oaxaca). Tocvan completed a definitive agreement with a private owner to acquire 100% interest in 2,172.7 hectares adjacent to Pilar project in Sonora. Silver Viper amended the terms of its option to acquire 100% ownership of three mineral concessions totaling 2,102 hectares at the La Virginia project, Sonora.   ON SOCIAL RESPONSIBILITY, Minera Media Luna, a subsidiary of Torex Gold Resources Inc, renewed the agreement of the Avanzando Juntos scholarship program with 60 young people, 33 of whom are pursuing their high school studies and 27 plus a bachelor’s degree.

ON MEXICO ISSUE

  • Newmont Corporation announced end of strike at its Peñasquito Mine in Zacatecas, and now is focused on a safe return-to-work plan and a quick ramp up of operations while strengthening workforce relationships. On October 13, 2023, Newmont and the Union submitted the Agreement to the Mexican Labor Court, which gave its approval, thus ending the strike. “In 2022, Peñasquito contributed USD $1.9 B in economic value to Mexico, including USD $643M in employee wages and benefits, taxes, and royalty payments to federal, state, and local governments, and investments in community infrastructure and water projects. Minera Peñasquito is the second largest employer in Zacatecas, Mexico with a workforce of more than 5,000 individuals. The mine supports another 28,000 people and their families, in neighboring communities and across the country, who are part of the mine’s local and national supply chain”.
  • Almaden Minerals Ltd., reported on two recent court decisions, both relating to the submission issued by Mexico´s Ministry of Economy to the second district court in Puebla. “As reported on February 22, April 13, and September 14, 2023, Economia made the Submission to the District Court seeking to deny the two mineral title applications which were first made by Almaden in 2002 and 2008. The Submission claims that the applications contain technical faults, despite Economia’s previous statements to the contrary and its acceptance of the mineral title applications and grant of the mineral titles in 2003 and 2009. By alleging technical faults in the mineral title applications, Economia appears to be arbitrarily seeking to deny the grant of the mineral titles and avoid the indigenous consultation ordered by the February 2022 decision of Mexico’s Supreme Court (SCJN). Such consultation would be welcomed by both the Company and surrounding community members. The two court decisions reported today are summarized as follow: The Federal Appeals court (TCC) dismisses all of the appeals filed by the Parties, including those of the  Company and supporting community members, and rules the Submission is compliant with the 2022 decision of the SCJN, since the SCJN decision did not formally prevent Economia from reviewing the technical aspects of the mineral title applications; The TCC ruling also does not address the validity of the Submission and therefore safeguards the Company’s right to challenge the substance and legality of the Submission through the Mexican Federal Administrative Court (TFJA);  As follow-up to the press release of September 14, 2023, the TFJA has now granted a definitive injunction in relation to the Submission, which prevents Economia from releasing the mineral rights covered by Almaden’s mineral title applications to third parties while the trial continues, anticipated to last 18 months”. (Ixtaca project, Puebla).
  • Prismo Metals Inc., Endeavour Silver Corp., and Kootenay Silver Inc., reported the best drilling intercepts in Mexico on the third week of October, 2023. Details are shown in the table below:

ON EXPLORATION

  • Aztec Minerals Corp., selected drill contractor and mobilized exploration crews to conduct an upcoming RC drilling program at its Cervantes project. This RC drilling program is planned to be conducted at Q4, 2023 in two stages and is permitted for a total of 4,200m in 28 holes. Second stage will be designed subject to results of the initial stage RC drilling program.
  • Prismo Metals Inc., reported results of the first holes ever drilled at its Los Pavitos project. It reported that four of the first eight holes at Santa Cruz target encountered high grade gold mineralization. Drilling highlights include hole LP-SC-01 (true widths reported) with 2.34 g/t Au, 15 g/t Ag, 0.08% Cu, 0.2% Pb, and 0.7% Zn over 5.2m, including 7.04 g/t Au, 43 g/t Ag, 0.19% Cu, 0.6% Pb, and 2.3% Zn over 1.4m; hole LP-SC.02 with 0.27 g/t Au, 0.5 g/t Ag, 0.01% Cu, 0% Pb, and 0.01% Zn over 1.2m, plus 5.77 g/t Au, 29 g/t Ag, 0.15% Cu, 0.2% Pb, and 0.4% Zn over 6m, including 10.22 g/t Au, 47 g/t Ag, 0.17% Cu, 0.3% Pb, and 0.6% Zn over 3.3m; hole LP-SC-07 with 1.52 g/t Au, 19 g/t Ag, 0.11% Cu, 0.1% Pb, and 0.06% Zn over 8.3m, including 2.52 g/t Au, 29 g/t Ag, 0.15% Cu, 0.1% Pb, and 0.1% Zn over 4.8m; and hole LP-SC-08 with 3.78 g/t Au, 19 g/t Ag, 0.19% Cu, 0.1% Pb, and 0.2% Zn over 7m, including 5.33 g/t Au, 27 g/t Ag, 0.27% Cu, 0.1% Pb, and 0.3% Zn over 4.5m. Prismo has delineated with mapping and sampling in the last year other targets in the property such as Las Auras, Oromuri, and Española. The company has plans to drill-test these other targets as well as to continue exploring the property to develop additional new areas for drilling in several areas identified during reconnaissance work.
  • Tocvan Ventures Corp., released first pass reconnaissance results from its Pilar expansion area. Samples were collected 4.5km from the Pilar main Zone and returned high grade gold and silver values “associated with intense hydrothermal altered volcanic rocks on the newly acquired expansion area. Highlights include 5.60 g/t Au and 106 g/t Ag; 3.54 g/t Au and 645 g/t Ag; and 1.84 g/t Au and 177 g/t Ag. “The extent of the alteration in the area of the samples spans for over 3.3km of strike and over a 1.5km width as defined by satélite Aster data”.
  • Kootenay Silver Inc., announced results from its ongoing drilling program at its Columba project in Chihuahua.  The current program comprises a 12 to 15 hole campaign for a total of approximately 3,000m designed to extend known mineralization on the “D-Vein” target 0.06% Pb, and area at Columba. Drilling highlights include hole CDH-23-138 with 599 g/t Ag, 0.5% Pb, and 1.2% Zn over 13.56m, including 858 g/t Ag, 0.8% Pb, and 1.9% Zn over 8m, including 2,060 g/t Ag, 3.2% Pb, and 4.3% Zn over 1m; hole CDH-23-137 with 118 g/t Ag, 0.03% Pb, and 0.09% Zn over 29.20m, including 190 g/t Ag, 0.04% Pb, and 0.2% Zn over 11.20m, or 864 g/t Ag, 0.2% Pb, and 0.08% Zn over 1m, or 340 g/t Ag, 0.06% Pb, and 1.2% Zn over 4m; and hole CDH-23-136 with 203 g/t Ag, 0.03% Pb, and 0.09% Zn over 4.97m, including 335 g/t Ag, 0.03% Pb, and 0.08% Zn over 2.97m. “The first 12 holes of the current program are designed to extend the D-Vein in preparation of a follow up program aimed to result in a maiden resource in late 2024. In addition to the D Vein, the Company maintains a priority list of new vein targets and known vein extensions all warranting drill testing”.
  • Colibri Resource Corporation provided an update on its exploration activities at their Pilar, EP, and Diamante projects in Sonora. At Pilar project, Colibri received the notice from Tocvan Ventures Corp., that it has met all conditions set forth in its 2019 option agreement with Colibri to earn an initial 51% of its advanced exploration stage Pilar Gold & Silver Project. Under the terms of the agreement, Tocvan has until March18th, 2024 to purchase the remaining 49% of Pilar from Colibri by paying an additional CAD $2M in cash and issuing a 2% net smelter on the project to Colibri. Tocvan would maintain an option to buy back 1% of the royalty for CAD $1M. At EP project, Colibri recently completed 1 2,200m and consolidated land position consisting of Colibri’s long held Evelyn Gold Project and the contiguous Plomo Gold Project. At Diamante project, the company is currently completing a geological mapping and sampling program, taking a property-wide approach as well as a more detailed evaluation of selected showings. Sampling includes outcrop sampling as well as property-wide stream sediment sampling. The Company anticipates initiating a drill program at Diamante before the end of the calendar year.

ON MINING

  • Orla Mining Ltd., reported Q3, 2023 production results from its Camino Rojo project in Zacatecas. The company mined 1,840,224 tonnes of 0.81 g/t Au, processed 1,716,819 tonnes of 0.85 g/t Au, and stockpiled 123,404 tonnes of low grade of 0.28 g/t Au, to produce 32,425 Oz Au, of which 31,060 were sold.
  • Gold Resource Corporation announced preliminary Q3, 2023 production results from its Don David Gold Mine in Oaxaca. The company milled 128,884 tonnes (129,099 combined) of 2.63 g/t Au, 64 g/t Ag,0.32% Cu, 2% Pb, and 4% Zn to produce 3,982 Oz Au, 208.9K Oz Ag, 548.8K Lb Cu, 2.12M Lb Pb, and 5.76 M Lb Zn at realized prices of USD $1,934 per Oz Au, USD $24 per Oz Ag, USDS $8,185 per tonne of Cu, USD $2,196 per tonne of Pb, and USD $2,195 per tonne of Zn.
  • Equinox Gold Corp., announced that it will present its Q3, 2023 financial and operating results on October 31, 2023 (Los Filos Mine, Guerrero).
  • GoGold Resources Inc., reported Q3, 2023 production results from its Parral Tailings project in Chihuahua and provided an update on its Parral Zn circuit. The company produced during the quarter 169.4K Oz Ag, 1,106 Oz Au and 257.6K Lb Cu (300.8K Oz AgEq). The company also reported that the construction of a zinc circuit, in addition to the SART plant at Parral, is well underway and projected to be completed by the end of this year, with the project on budget and on schedule.
  • Santacruz Silver Mining Ltd., announced Q3, 2023 production results from its Zimapan Mine in Hidalgo. The company milled 192,158 tonnes of 80 g/t Ag, 1% Pb, 2.5% Zn, and 0.29% Cu with metallurgical recoveries of 76%, 82%,18%, and 46% respectively, to produce 378.7K Oz Ag, 3.42M Lb Pb, 8.36M Lb Zn, and 564.5K Lb Cu.
  • Avino Silver & Gold Mine Ltd., reported Q3, 2023 production results from its Avino Mine in Durango. The company milled 154,507 tonnes of 56 g/t Ag, 0.58 g/t Au, and 0.42% Cu with metallurgical recoveries of 86%, 72%, and 80% respectively to produce 237.2K Oz Ag, 2,077 Oz Au, and 1.14M Lb Cu (591.2K Oz AgEq).
  • Sierra Metals Inc., announced Q3, 2023 production results from their Bolivar and Cusi Mines in Chihuahua. At Bolivar Mine, the company processed 362,890 tonnes of 0.77% Cu, 15 g/t Ag, and 0.37 g/t Au with metallurgical recoveries of 92.1%, 81.95%, and 69.58% respectively to produce 5.67M Lb Cu, 148K Oz Ag, and 2,965 Oz Au (8.1M Lb CuEq). At Cusi Mine, Sierra Metals processed 29,050 tonnes of 127 g/t Ag, 0.15 g/t Au, and 0.45% Pb with metallurgical recoveries of 83.94%, 58.5%, and 87.83% respectively, to produce 99K Oz Ag, 81 Oz Au, and 251K Lb Pb (117K Oz AgEq).
  • Bear Creek Mining Corporation reported Q3, 2023 production results from its Mercedes Mine in Sonora. The company mined 123,505 tonnes and processed 125,208 tonnes of 2.42 g/t Au with a metallurgical recovery of 94.03%, to produce 9,158 Oz Au and 34,929 Oz Ag, of which 6,298 Oz Au were sold and 2,720 Oz Au were streamed. Bear Creek also provided gold production guidance for 2023 to 39,000-45,000 Oz Au.

ON FINANCING

  • Sierra Madre Gold and Silver Ltd., announced the amendment of all 5,123,092 subscription receipts, in order to extend the escrow release conditions and termination (as both terms are defined in the May 31 and Sep 14 News Releases) for an additional 30-day period (La Guitarra Mine Complex, Estado de Mexico State).
  • Bear Creek Mining Corporation announced the issuance of a secured convertible promissory note in the amount of USD $26,632,458 to defer a USD $25M current liability originally payable to a wholly-owned subsidiary of Equinox Gold Corp., Commencing on November 30, 2023, the company will make monthly interest payments in the amount of USD $155,356 to Equinox Gold with the balance of the principal and accrued interest payable in full on the Maturity Date (Mercedes Mine, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Sonoro Gold Corp., filed a NI 43-101 technical report for a Preliminary Economic Assessment (PEA) on its Cerro Caliche project in Sonora, with an effective day of August 28, 2023. PEA highlights include: pre-tax net present value discounted at 5% (NPV5) of USD $71.4M; pre-tax internal rate of return (IRR) of 59%; after-tax NPV5 of USD $47.7M with an IRR of 45%; gold recovery of 72% and silver recovery of 27%; 9 year life of mine (LOM) with 297,575 Oz AuEq;  LOM annual average production of 33K Oz AuEq at 0.45 g/t AuEq; initial CAPEX costs of USD $15.5M, including USD $1.83M in contingency; sustaining capital costs of USD $15.5M; cash operating cost of USD $1,295 per Oz AuEq; all included sustaining cost (AISC) of USD $1,395 per Oz AuEq; and a payback period of 2.9 years.
  • Sierra Madre Gold and Silver Ltd., announced that it has engaged Stantec Consulting International LLC to examine tailings deposition options at its La Guitarra Mine Complex in Estado de Mexico State. Results are expected towards the end of Q4, 2023.
  • Endeavour Silver Corp., released positive drill results from its ongoing drilling program being conducted at El Curso and Porvenir Dos Areas at its Guanacevi project in Durango. Drilling highlights (true widths reported) at El Curso Area include holes UCM-117 with 1.09 g/t Au and 384 g/t Ag (471 g/t AgEq) over 5.64m, including 4.73 g/t Au and 1,730 g/t Ag (2,076 g/t AgEq) over 0.37m; hole UCM-120 with 3.43 g/t Au and 1,265 g/t Ag (1,540 g/t AgEq) over 2.20m, including 14.35 g/t Au and 2,780 g/t Ag (3,944 g/t AgEq) over 0.21m; hole UCM-123 with 1.4 g/t Au and 265 g/t Ag (378 g/t AgEq) over 3.2m; and hole UCM-125 with 2.77 g/t Au and 859 g/t Ag (1,080 g/t AgEq) over 3.42m, including 8.22 g/t Au and 2,610 g/t Ag (3,268 g/t AgEq) over 0.64m. Within the El Curso concessions, 18 new holes have been completed totaling 3,162 metres. Drilling highlights (true widths reported) at Porvenir Dos Area include holes APD-13 with 1.08 g/t Au and 657 g/t Ag (743 g/t AgEq) over 3.47m, including 3.24 g/t Au and 4,090 g/t Ag (4,349 g/t AgEq) over 0.20m: and hole APD-23 with 1.15 g/t Au and 414 g/t Ag (506 g/t AgEq) over 2.77m, including 3.45 g/t Au and 1,170 g/t Ag (1,446 g/t AgEq) over 0.45m. Near Porvenir Dos, on the Alondra concessions, 19 new holes have been completed totalling 5,854 metres. “Endeavour plans to continue drilling towards the northwest to test continuity with the objective to access ore from development advancing between the El Curso and Porvenir Dos areas that would eventually be connected”.
  • Oroco Resource Corporation filed a Preliminary Economic Assessment (PEA) and updated Mineral Resource Estimate (MRE) for the North and South Zones of its Santo Tomas project in Sinaloa. Highlights of the PEA include a USD $2.33 B pre-tax NPV (8%) and USD $1.24 B after-tax NPV (85); 23% pre-tax IRR and 17.3% after-tax IRR; total life of mine (LOM) payable copper production of 4,749 M Lb; pre-tax payback of 4.1 years and after-tax pay-back of 5 years from first concentrate production; initial cost estimated at USD $1,339.9M , sustaining and expansion capital costs estimated at USD $1,134.5M; average annual LOM C1 cash cost of USD $1.66/Lb Cu on by-product basis; and an ultimate pit design constrained resource of 338M tonnes of indicated and 460M of inferred material. The table below shows the MRE for the Santo Tomas project:

Notes:

  1. Mineral resources are not mineral reserves and do not have demonstrated economic viability.
  2. Table abbreviations include: % = percent, g/t = grams per metric tonne, Mlb = million pounds, Koz = thousand troy ounces.
  3. The mineral resources are reported at an effective cut-off grade (CoG) of 0.15% Cu.
  4. All figures are rounded to reflect the relative accuracy of the estimates. Totals in the above table may not sum or recalculate from related values in the table due to rounding of values in the table, reflecting fewer significant digits than were carried in the original calculations.
  5. The mineral resources exclude identified oxide mineralization due to a lack of confidence in recovery assumptions of oxidized tonnages at this phase of the Project.
  6. Metal assays are capped where appropriate. At the PEA level of the Project, it is the Company’s opinion that all the elements included in the copper equivalent calculation have a reasonable potential to be recovered and sold.
  7. All dollar amounts are presented in U.S. dollars.
  8. Bulk density is estimated on a block basis using specific gravity data collected on diamond drill core.
  9. Reasonable prospects of eventual economic extraction (RPEEE) are demonstrated through use of an economic pit shell based on long-term copper price of $4.00/lb, molybdenum price of $13.50/lb, a gold price of $1,700/oz, and a silver price of $22.50/oz. Metal recovery factors used in the determination of CoG and economic pit shell for Cu, Mo, Au, and Ag have been applied based on metallurgical recovery calculations based on average feed grade. A 45-degree slope angle was applied.
  10. The Huites Reservoir boundary was ignored for the purposes of mineral resource determination. This is consistent with the previous study.
  11. The economic CoG was calculated to be 0.11% Cu but for consistency with the previous study, Oroco has elected to use an effective CoG at 0.15% Cu. CoG assumptions include a copper price of $4.00/lb., mining cost of $2.27/t, processing costs of $4.23/t, G&A costs at $0.65/t, mine recovery at 98%, mean Cu recovery at 83.7%, and royalties at 1.5%, have been applied in consideration of the RPEEE.
  12. Equivalent Copper (CuEq) percent is calculated with the formula CuEq% = ((Cu grade * Cu recovery [83.7%] * Cu price) + (Mo grade * Mo recovery [59.1%] * Mo price) + (Au grade * Au recovery [58.6%] * Au price) + (Ag grade * Ag recovery [54.2%] * Ag price)) / (Cu price * Cu recovery [83.7%]). It assumed that the Santo Tomas Project would produce a conventional (flotation) copper concentrate product based on metal recoveries indicated by PEA metallurgical test work and mean Indicated Resource feed grades.
  13. Reported contained individual metals in the table above represent in-situ metal, calculated on a 100% recovery basis, except for CuEq% which applies mean recovery assumptions (see Note 12).
  • Gatos Silver Inc., announced filing of updated technical report on its Cerro Los Gatos Mine, Chihuahua.  The 2023 Technical Reports, titled “Mineral Resource and Mineral Reserve Update, Los Gatos Joint Venture, Chihuahua, Mexico” dated October 20, 2023, support the disclosure made by the Company in its September 6, 2023 press release announcing an updated Cerro Los Gatos mineral reserve, mineral resource, and life of mine plan. 

ON DEALS AND CORPORATE ISSUES

  • Goldgroup Mining Inc., exercised its option to purchase all of the issued and outstanding common shares of Minera Cerro Esperanza S.A de C.V. (MER), which owns the Company’s previously held Cerro Prieto mining concessions, in Sonora, “by a full option price of USD $1.85M in common shares of the Company and will issue 25,067,500 common shares to Calu Opportunity Fund LLP (Calu), the owner of MER and a material shareholder of the Company. As a result of the transaction, Calu will own, directly and indirectly, 55,297,000 common shares of the Company representing approximately 66.83% of the Company’s issued and outstanding share capital. The completion of the transaction is subject to final TSX approval”.
  • Vortex Metals Inc., announced the attendance at the 121 Mining Investment Conference in New York (Riqueza Marina project, Oaxaca).
  • Tocvan Ventures Corp., completed a definitive agreement with a private owner to acquire 100% interest in 2,172.7 hectares adjacent to Pilar project in Sonora by paying USD $4M in cash and the issuance of 2.5M of common shares over the 5-year term of the agreement. A total minimum work commitment of USD $1M is considered over the agreement. The title owner will retain a 2% NSR on the properties acquired. After the initial 5-year term the company can elect to extend the agreement an additional 10 years by starting advanced royalty payments or purchase full title ownership through an additional cash payment of USD $500K.
  • Silver Viper Minerals Corp., amended the terms of its option to acquire 100% ownership of three mineral concessions totaling 2,102 hectares at the La Virginia project, Sonora. “The amendment clarifies that the USD $775K (or CAD $1,042,142.50, based on a fixed exchange rate of USD$-CAD$ of 1.3447 set out in the amendment) of Shares issuable by the Company to satisfy as a portion of the final payment under the Agreement in June 2024, will be issued with a deemed price per Share equal to the higher of (i) the closing price of the Shares on the TSX Venture Exchange on June 24, 2024 or (ii) CAD $0.095. In addition, the amendment also sets out that the Company shall not issue more than 10,969,922 Shares in satisfying this portion of the consideration due to the vendors. As previously announced by the Company, in addition to such issuance of Shares, the Company will also make a cash payment of US$200,000 to the vendors. In satisfaction of the Company’s payment of the USD $1,5M (or CAD $2.01M, based on an exchange rate of USD$-CAD$ of 1.3447) of Shares due to the vendors in April 2023 under the amended Agreement, the Company confirms it issued the vendors an aggregate of 16,808,750 Shares at a deemed price per share of CAD $0.12 on April 25, 2023”.

ON SOCIAL RESPONSIBILITY

  • Minera Media Luna, a subsidiary of Torex Gold Resources Inc, renewed the agreement of the Avanzando Juntos scholarship program with 60 young people, 33 of whom are pursuing their high school studies and 27 plus a bachelor’s degree. This is the sixth consecutive year in which the company supports young students from the municipalities of Cocula and Tepecoacuilco; and the second to young people from Eduardo Neri, having MXP $441K of investment that the company grants to the students with the best averages of the January-June 2023 school semester, thus adding an annual amount of MXP $ 882K. The people benefiting from the Avanzando Juntos scholarship program are from the communities of Nuevo Balsas, Real del Limón, La Fundición, San Nicolás, Acalmantlila, Tlanipatlan, Atlixtac in the municipality of Cocula; as well as Puente Sur Balsas and Mazapa, in the municipality of Eduardo Neri; and from Tepecoacuilco to young people from the Valerio Trujano town. The company’s objective has been to reaffirm the commitment to strengthen education as a tool in the development of social and human capital, for a prosperous future.

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 Carbonate Replacement Deposit (CRD) in Durango, Mexico. Photo by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the Second Week of October 2023

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By Jorge Cirett                                             

During the 41st week of the year (October 9th to October 15th, 2023), 19 companies working in Mexico posted news releases. One company reported exploration on one of its properties, while six companies released Q3 2023 results. Five companies informed on the opening or closing of private placements, on credit facilities and share-for-debt transactions. One company announced an updated mineral resource estimate on a property. Two companies updated on director’s appointments and AGM’s results. ON MEXICO ISSUES, Pan American Silver re-commenced operations at La Colorada mine in Zacatecas, after suffering the theft of two concentrate trucks on the first week of October. ON EXPLORATION, In Sonora, Colibri Resources completed a drilling campaign on the “EP” project. ON MINING, Aura Minerals, Gatos Silver, SilverCrest Metals, Endeavour Silver, Torex Gold and First Majestic Silver presented Q3 2023 production results. ON FINANCING, Endeavour Silver executed the credit agreement for up to $120 M for the construction of the Terronera mine in Jalisco. Fortuna Silver announced the repayment of $40 M. Bear Creek Mining announced BMO Capital Markets is not to exercise the over-allotment option on the last financing round. Guanajuato Silver Company completed a C$937 K shares-for-debt transaction. Sierra Metals closed a $16.38 M non-brokered private placement.  ON RESOURCES AND DEVELOPMENT, Kootenay Silver announced an updated mineral resource estimate for its Promontorio-La Negra deposit in Sonora. ON DEALS AND CORPORATE ISSUES, Luca Mining and Starcore International Mines announced directors’ appointments and Starcore its annual general meeting results. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • Pan American Silver Corp. announced the commencement of operations at La Colorada mine in Zacatecas on October 16, 2023. Activities were suspended on October 5, 2023, due to security concerns following the armed robbery (no injuries, no casualties) of two concentrate trucks from the operation.

ON EXPLORATION

  • Colibri Resource Corp. reported the completion of its phase 3 drilling campaign at selected targets on its 4,766 ha “EP project” in Sonora, with 2,000 m in 17 holes. Areas targeted include West El Sahuaro, an area north of the Main Zone and an area south of the Main Zone. Previous drilling on the El Sahuaro zone has returned up to 15 m @ 2.36 gpt Au, 22 m @ 0.17 gpt Au; 6 m @ 0.626 gpt Au, and 87 m @ 0.13 gpt Au; 86 m @ 0.17 gpt Au (including 10 m @ 0.55 gpt Au); 34.7 m @ 0.28 gpt Au (including 5.65 m @ 1.0 gpt Au); 29 m @ 0.47 gpt Au in the Main Zone. 

ON MINING

  • Aura Minerals Inc. announced Q3 2023 preliminary results, including figures from its Mexican operations. At Aranzazu, in Zacatecas, 27,933 Oz AuEq were produced, an 11% increase on the previous month.
  • Gatos Silver Inc. announced production results for the third quarter 2023. At Cerro Los Gatos, in Chihuahua, 268.3 K tonnes were milled at a daily rate (tpd) of 2,916 tonnes, grading 285 gpt Ag, 3.82% Zn, 1.84% Pb, 0.30 gpt Au, recovering 90.3% Ag, 61.1% Zn, 87.4% Pb, 49.2% Au, to produce 2.22 M Oz Ag, 13.8 M Lb Zn, 9.5 M Lb, Pb, 1,280 Oz Au.
  • SilverCrest Metals Inc. provided results for the third quarter 2023 from its Las Chispas mine in Sonora. During the period 83.8 K tonnes were mined, and 114.5 K tonnes milled, at a daily rate of 1,245 tonnes (tpd), averaging 4.35 gpt Au, 413 gpt Ag, recovering 98.3% Au, 98.1% Ag, to produce 15,700 Oz Au, 1.49 M Oz Ag (or 2.74 M Oz AgEq).
  • Endeavour Silver Corp. reported third quarter 2023 consolidated production of 1.15 M Oz Ag, 9,089 Oz Au (or 1.9 M Oz AgEq). At Guanaceví, in Durango, 103.3 K tonnes were processed at 1,123 tpd, grading 341 gpt Ag, 1.03 gpt Au, with recoveries of 91.9% Ag, 92.4% Au, to recover 1.04 M Oz Ag, 3,161 Oz Au. At Bolañitos, in Guanajuato, 110.9 K tonnes were processed at 1,206 tpd, grading 37 gpt Ag, 1.89 gpt Au, with recoveries of 82.6% Ag, 87.9% Au, to recover 107.5 K Oz Ag, 5,928 Oz Au. At Guanaceví production was below plan due to a reduction in metal grades and a scheduled maintenance shutdown. At Bolañitos performance remained strong.
  • Torex Gold Resources Inc. reported Q3 2023 production from its El Limón Guajes operation in Guerrero. Durning the period 11,153 tonnes per day were mined from the open pit, with 110 K tonnes of waste moved, and 2,321 tonnes mined from underground, with a total of 13,107 tpd processed averaging 2.47 gpt Au, recovering 88.7% Au to produce 85,360 Oz Au. Torex remains on track to reach the annual production guidance of 440,000 to 470,000 Oz Au.
  • First Majestic Silver Corp. announced production results for the third quarter 2023 from its three operating mines in Mexico. At San Dimas, in Durango, 213.7 K tonnes were processed at a rate of 2,323 tpd, averaging 237 gpt Ag, 2.71 gpt Au, recovering 95% Ag, 96% Au to produce 1.55 M Oz Ag, 17,863 Oz Au. At Santa Elena, in Sonora, 226.3 K tonnes were processed at a rate of 2,460 tpd, averaging 75 gpt Ag, 4.09 gpt Au, recovering 64% Ag, 95% Au to produce 347.9 K Oz Ag, 28,367 Oz Au. At La Encantada, in Coahuila, 230.2 K tonnes were processed at a rate of 2,503 tpd, averaging 109 gpt Ag, 0.01 gpt Au, recovering 70% Ag, 90% Au to produce 565.7 K Oz Ag, 94 Oz Au. Total consolidated production for the quarter in Mexico was 2,461.9 K Oz Ag, 46,324 Oz Au, or 6.25 M Oz AgEq. Throughout the period twelve rigs were active at San Dimas and four at Santa Elena.

ON FINANCING

  • Endeavour Silver Corp. executed the credit agreement for a senior secured debt facility for up to $120 M with ING Capital LLC and ING BANK N.V.  for the underground mine and mill at Terronera, in Jalisco. The term of the facility is 8.5 years, including a 2-year grace period during the construction phase, an annual rate of US secured overnight financing rate + 4.50% prior to completion and + 3.75% upon completion. Endeavour is required to enter into a hedging program for 68 K Oz Au over the initial two operating years prior to initial drawdown, while no hedging is required on silver production.
  • Fortuna Silver Mines Inc. reported the payment of $40 M of its revolving credit facility at the end of Q3 2023, using cash on hand. After the payment the estimated total net debt is $133 M (San José, Oaxaca).
  • Bear Creek Mining Corp. announced that BMO Capital Markets, as underwriter to the previously announced C$9.5 M bought deal financing that closed on October 5, 2023, has notified the company that it has elected not to exercise the over-allotment option related to the Offering (Mercedes, Sonora).
  • Guanajuato Silver Company Ltd. announced the completion of its previously announced shares-for-debt transaction totaling C$937 K through the issuance of common shares, including shares issued to one non-arms-length party to settle an indebtedness of C$150 K (El Cubo, Guanajuato).
  • Sierra Metals closed a non-brokered private placement for aggregate gross proceeds of $16.38 M (Bolivar, Chihuahua).

ON RESOURCES AND DEVELOPMENT

  • Kootenay Silver Inc. announced an updated mineral resource estimate at the Promontorio-La Negra project in Sonora. “The resource estimate is an update of the Promontorio deposit and a maiden mineral resource estimate for the La Negra deposit 7km to the north. The two deposits are part of the Promontorio Mineral Belt and are considered a single project”. Using the base-case scenario with a 25 gpt AgEq cutoff Promontorio has 42.1 M tonnes @ 34.54 gpt Ag, 0.43 gpt Au, 0.49% Pb, 0.57% Zn, containing 46.8 M Oz Ag, 575 K Oz Au, 454.7 M Lb Pb, 527.6 M Lb Zn (or 140.8 M Oz AgEq) in measured and indicated resources and 14.6 M tonnes @ 27.89 gpt Ag, 0.35 gpt Au, 0.42% Pb, 0.45% Zn, containing 13.1 M Oz Ag, 163 K Oz Au, 136.2 M Lb Pb, 143.6 M Lb Zn (or 39.8 M Oz AgEq) in inferred resources. At La Negra the base case scenario assumes a grade of 40 gpt AgEq, with 5.3 M tonnes @ 126.3 gpt Ag, 0.067 gpt Au, containing 22.0 M Oz Ag, 21,450 Oz Au in indicated resources and 1.26 M @ 112.2 gpt Ag, 0.060 gpt Au, containing 4.6 M Oz Ag, 4,540 Oz Au.

ON DEALS AND CORPORATE ISSUES

  • Luca Mining Corp. announced the appointment of Chris Richings as vice-president technical (Campo Morado, Guerrero).
  • Starcore International Mines Ltd. reported the results of its annual general meeting held on October 12, 2023. All directors were re-elected and approved the appointment of an auditor firm (San Martin, Queretaro).

ON SOCIAL RESPONSIBILITY

  • No relevant news.

On the image below Silicified vein ridges under the sun and shade in the Sonoran Desert. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the First Week of October, 2023

/ gambusinoprospectormexico / Leave a comment

Diatreme breccia

By Miguel A Heredia

During the 40th week of the year (October 02nd to October 08th, 2023), at least 20 press releases were announced by companies working in Mexico, and 6 news published by the media, with nine commenting on Mexican issues, five disclosing deals and corporate issues, four reporting resources and developments of their properties, four informing on exploration results, two announcing financing issues, and two reporting production results. ON MEXICO ISSUES, Pan American suspended temporarily operations at its Colorada Mine in Zacatecas due to security concern. Grupo México declared that the Sonora River was successfully remedied, while the Ministry of the Environment and Natural Resources (SEMARNAT) presented a document stating that the presence of contaminating elements persists in the Sonora River basin after the Grupo Mexico spill in August 2014. President Andrés Manuel López Obrador said on Wednesday, October 4, 2023, that in about 15 days he hopes to have a proposal for action on the notorious case of a chemical spill from a mine owned by the giant Grupo México into a river in the north of the country in 2014. Mine Workers Union of Peñasquito Mine in Zacatecas, the Mexico´s largest gold mine, accepted operator Newmont Corp´s proposal to end a 4 month stop on Thursday night, October 5, 2023. Gold and silver mining companies listed in the United States and Canada stock markets suffered the decline in precious metals in the international market, due to the strength of the dollar, among other reasons. Chesapeake and Defiance Silver reported the best drilling intercepts in Mexico on the first week of October, 2023. ON EXPLORATION, In Coahuila, Monumental reported final results of its maiden drilling program at its Jemi heavy rare earth element project. In Sinaloa, Chesapeake reported a new gold discovery at its Lucy project. In Zacatecas, Radius provided an update of its drilling program at its Tropico project. In Oaxaca, Vortex excavated manually six trenches, totalling 188m and collected 117 samples at its Riqueza Minera project.  ON MINING, Fortuna reported Q3, 2023 production results from its San Jose Mine, Oaxaca. Guanajuato Silver provided an operations update of their four silver producing mines (El Cubo, Valenciana, and San Ignacio Mines in Guanajuato, and Topia Mine in Durango). ON FINANCING, Excellon completed the extension of the maturity date of its 5.75% secured convertible debentures from July 30, 2023 to July 31, 2024 (La Negra Mine, Queretaro).  Bear Creek closed its previously announced bought deal financing for gross proceeds of CAD $9.5M (Mercedes Mine, Sonora). ON RESOURCES AND DEVELOPMENT, Defiance announced that new sampling of historical drill holes has identified high grade mineralization in wide widths in previously unrecognized zones at the San Acacio project area in Zacatecas. Heliostar reported 80.4% average gold recovery from seven composites representative of the High Grade Panel at its Ana Paula project in Guerrero. Minera Alamos reported maiden Mineral Resource Estimate for its Santana project, Sonora. Tocvan identified several target areas through its due diligence field work completes at its Pilar project in Sonora.    ON DEALS AND CORPORATE ISSUES, Impact Silver announced that its shares are now trading in the USA on the OTCQB market (Zacualpan project, State of Mexico). Sierra Madre reported that its common shares are now eligible for electronic clearing and settlement through the Depository Trust Company (DTC) in the United States (La Guitarra Mine, State of Mexico). Goldgroup announced the appointment of its new CEO (Cerro Prieto Mine, Sonora). Orex signed a non-binding letter of intent to acquire 100% of the Valenciana property in Zacatecas. Radius completed the issuance of 500K common shares to Bruce Smith (Tropico project, Zacatecas).  ON SOCIAL RESPONSIBILITY, No relevant news.

ON MEXICO ISSUE

  • Pan American Silver Corp., suspended temporarily operations at its Colorada Mine in Zacatecas due to security concern. The company experienced an armed robbery of two trailers of concentrate. Fortunately, there were no physical injuries to the personnel. Pan American decided to suspend operations, project work, and exploration at La Colorada to protect the safety and security of the personnel.
  • Grupo México S.A.B. de C.V., declared that the Sonora River was successfully remedied, while the Ministry of the Environment and Natural Resources (SEMARNAT) presented a document stating that the presence of contaminating elements persists in the Sonora River basin after the Grupo Mexico spill in August 2014. In a statement, Grupo México pointed out that “The supposed findings of the sampling presented last week lack any causal link with the event that occurred in 2014. They fail to point out other current sources of contamination such as illegal mining, the discharge of untreated blackberries and the prolonged accumulation of residues of agricultural fertilizers and insecticides. The results released in recent days contradict those that CONAGUA and COFEPRIS have made public over time, which are supported by laboratories accredited by the Mexican Accreditation Entity (EMA) and endorsed by various institutions.” Grupo México argues that for five years after the accident, water monitoring was carried out in 35 sampling stations and 33 wells, in addition to bio-monitoring that included analyzes of exposure to metals, plant toxicity, genetics in invertebrates and flora. The document presented by the mining company states that “scientific evidence supports that the remediation of the Sonora River is recognized as successful and fully in accordance with the law,” and that the Sonora River region has been affected by continuous disinformation campaigns, arising with Political purposes.
  • President Andrés Manuel López Obrador said on Wednesday, October 4, 2023, that in about 15 days he hopes to have a proposal for action on the notorious case of a chemical spill from a mine owned by the giant Grupo México into a river in the north of the country in 2014. Last week, the environmental authority presented an opinion in which it concluded that the firm’s remediation efforts had not been sufficient and that the Sonora River continued to show the presence of contaminants nine years after the incident. On Wednesday, however, tycoon Germán Larrea’s company said the remediation was “successful.” At the time, the company was fined and had to create a trust to repair the damages. The president added that it seemed that the resources had not only been insufficient but also that their use had not been transparent.
  • Mine Workers Union of Peñasquito Mine in Zacatecas, the Mexico´s largest gold mine, accepted operator Newmont Corp´s proposal to end a 4 month stop on Thursday night, October 5, 2023. Mine Workers Union stated in a statement that as part of the agreement, workers at the Peñasquito mine will receive 8% more pay for each shift, and the increase will be retroactive to August 1, 2023. Each of the around 2,000 unionized workers will also receive an equal share of a total of MXN $152M (USD $8.3 M). The dispute over profit sharing related to 2022 will be decided by Mexico’s tax agency, while workers will receive 10% of profits for 2023 as long as the company makes a net profit in its income, according to the statement.
  • Gold and silver mining companies listed in the United States and Canada stock markets suffered the decline in precious metals in the international market, due to the strength of the dollar, among other reasons. The shares of the Mexican mining company Industrias Peñoles fell almost 5% this Monday, losing MXP $3,975M in capitalization on the Mexican Stock Exchange (BMV). In fact, the session hit a one-year low. Peñoles shares fell 4.87%, to MXP $195.45 each, making it the second station that lost the most in the session on the BMV. Its Fresnillo subsidiary listed on the London Stock Exchange lost 2.94%, to 5.35 pounds per share. Earlier in the day, Peñoles’ stock on the BMV reached a minimum of MXP $190.40, its lowest level since September 30, 2022. The American companies Newmont and Royal Gold fell 3.82 and 3.25%, in that order, on Wall Street, while the Canadian companies Wheaton Precious Metals and Pan American Silver fell 3.92 and 5.25%, respectively, on the Toronto Stock Exchange. In Mexico, the other three mining companies listed on the Stock Exchange (Grupo México, Compañía Minera Autlán and Frisco) did not present losses in their shares, because their income depends to a lesser extent on precious metals.
  • Chesapeake Gold Corp., and Defiance Silver Corp., reported the best drilling intercepts in Mexico on the first week of October, 2023. Details are shown in the table below:

ON EXPLORATION Monumental Minerals Corp., reported final results of its maiden drilling program at its Jemi heavy rare earth element (REE) project in Coahuila, which commenced on the Veladora North and South prospect areas. “Of the 2000 m drilled, 186 m of core (124 samples) returned anomalous REE concentrations. These samples contained total rare earth oxides (TREO1) results greater than 500 parts per million (ppm), with a maximum of 2018 ppm, and a mean and standard deviation of 717 and 282 ppm (respectively). Heavy rare earth oxides (HREO2) are also highest in these samples with a maximum of 517 ppm, and a mean and standard deviation of 164 ppm and 98 ppm (respectively). Anomalous TREO1 and HREO2 values were observed in every drill hole except JV-23-08 and JV-23-10”. Table below shows La Veladora significant assay results:

  • Chesapeake Gold Corp., reported a new gold discovery at its Lucy project, Sinaloa. The company completed 14 holes in the 2023 campaign for a total of approximately 1,710 m drilled. Drilling highlights include hole LU23-06 with 6.11 g/t Au over 24m; hole LU23-09 with 2.57 g/t Au over 30m, including 3.12 g/t Au over 24m; hole LU23-10 with 1.95 g/t Au over 21m, including 3.3 g/t Au over 9m; and hole LU23-13 with 3.95 g/t Au over 24m, including 5.44 g/t Au over 12m.
  • Radius Gold Inc., provided an update of its drilling program at its Tropico project, Zacatecas. As previously reported, hole TDD-001 planned for 300m to intercept Tropico target, encountered difficult ground conditions at 56m in a large brecciated fault zone. “This hole intercepted from 19m to 56m, intense altered clay, silicification, variable zones of hydrothermal breccia and sets of stockwork veinlets with banded silica veins.  Assay results from 18 samples returned 29m at 0.34 g/t gold from 24m downhole with the final sample returning 0.6 g/t Au. Diamond drill hole TDD-002 was collared 25m west of TDD-001 and drilled at -55° directly under TDD- 001 using larger diameter PQ core. The hole is still in progress. Below 25m of soil cover the hole intersected a 45m zone of epithermal alteration (similar to TDD-001) with clay, variable silicification, brecciation and zones of veinlets with occasional banded vein textures”. “Diamond drill hole TDD-003 was collared on the west of the Tropico breccia and drilled east at -65° to scissor holes 1 and 2 at depth. TDD-003 was collared in silicified crackle breccia and has to date intersected 80m of variably clay altered, silicified, and brecciated sediment. Significantly at 69m depth the hole intersected a 13m zone of white banded massive epithermal veining and breccia. The hole is still in progress”.
  • Vortex Metals Inc., reported that it is focused on the Rhyolite Dome area at its Riqueza Minera project in Oaxaca, and has moved westward toward the copper-bearing gossans of the Laminas zone, which may represent a Cu-rich stringer zone in the footwall of a VMS deposit. The company has excavated manually six trenches, totalling 188m, in which has identified broad exposures of iron- and manganese-rich exhalite horizons, silicified rhyolite flows and altered metasediments. Vortex has collected 117 samples and sampling results are anticipated to arrive in October.

ON MINING

  • Fortuna Silver Mines Inc., reported Q3, 2023 production results from its San Jose Mine in Oaxaca. The company milled 247,542 tonnes of 189 g/t Ag and 1.14 g/t Au with metallurgical recoveries of 91.31% and 90.71% respectively, to produce 8,205 Oz Au and 1.37M Oz Ag. The San Jose Mine plans to deliver annual silver production within the guidance range of between 5.3 to 5.8M Oz Ag.
  • Guanajuato Silver Company Ltd., provided an operations update of their four silver producing mines: El Cubo, Valenciana, and San Ignacio Mines in Guanajuato, and Topia Mine in Durango. “Since commercial restart at Valenciana Mine Complex in January 2023, steady production improvements, aided by the refurbishment of both the Cata shaft and a new underground locomotive system, have enabled the company to achieve production at the Cata Mill averaging over 20,000 tonnes per month from material sourced from Valenciana and San Ignacio”. “El Cubo operation is now milling at the rate of approximately 22,000 tonnes per month; this rate represents approximately half of the total capacity at the mill”. “The Company, in conjunction with the Secretaría Del Trabajo (the Federal Ministry of Labour), have been working to improve safety and security conditions at the mine in response to the unfortunate fatality that occurred in August 2023”. “The mineralized systems currently being mined at Topia are extraordinarily high grade yet are associated with higher extraction costs because of the narrow nature of the vein structures. With the goal of improving profitability at Topia, the Company intends to dramatically transform its operations through the exclusive use of local mine contactors”. The Company now anticipates that full year AgEq 2023 production will range from 3.4M to 3.6M Oz.

ON FINANCING

  • Excellon Resources Inc., completed the extension of the maturity date of its 5.75% secured convertible debentures from July 30, 2023 to July 31, 2024. In consideration for the extension, the company has issued 6,888,458 common shares of the company priced at CAD $0.156 per common share to the holders of the debentures in satisfaction of an extension fee in an amount equal to 6% of the aggregate principal amount of the debentures at the time of announcement (La Negra Mine, Queretaro).
  • Bear Creek Mining Corporation closed its previously announced bought deal financing. The company issued a total of 27.2M units at a price of CAD $0.35 per unit for gross proceeds of CAD $9.5M. Each unit is comprised of one common share of the company and one common share purchase warrant of the company. Each warrant will be exercisable to acquire one common share at an exercise price of CAD $0.42 per warrant share until October 5, 2028. Net proceeds will be used to support additional development work at its Mercedes Mine in Sonora, to expand on recent positive underground drill results, and for general working capital purposes, including CADS $3M intended to be used to reduce Mercedes ´trade payables to a normalized level over the next two quarters.

ON RESOURCES AND DEVELOPMENT

  • Defiance Silver Corp., announced that new sampling of historical drill holes has identified high grade mineralization in wide widths in previously unrecognized zones at the San Acacio project area in Zacatecas. Significant drill intercepts were encountered in holes SAD-15-05 with 98 g/t Ag, 0.1 g/t Au, 0.01% Pb, and 0.03% Zn (107 g/t AgEq) over 1m, plus 91 g/t Ag, 0.15 g/t Au, 0.08% Pb, and 0.3% Zn (114 g/t AgEq) over 4.65m, including 308 g/t Ag, 0.06 g/t Au, 0.05% Pb, and 0.2% Zn (319 g/t AgEq) over 0.85m, plus 153 g/t Ag, 0.02 g/t Au, 0.05% Pb, and 0.1% Zn (161 g/t AgEq) over 2.72m; hole SAD-15-07 with 235 g/t Ag, 0.3 g/t Au, 0.07% Pb, and 0.16% Zn (267 g/t AgEq) over 1.12m, 89 g/t Ag, 0.16 g/t Au, 0.13% Pb, and 0.51% Zn (123 g/t AgEq) over 3.77m, including 283 g/t Ag, 0.26 g/t Au, 0.12% Pb, and 0.52% Zn (324 g/t AgEq) over 0.84m; hole SAD-17-14 with 129 g/t Ag, 0.25 g/t Au, 0.06% Pb, and 0.18% Zn (157 g/t AgEq) over 6.83m, including 319 g/t Ag, 0.59 g/t Au, 0.08% Pb, and 0.22% Zn (376 g/t AgEq) over 2.3m, including 1,180 g/t Ag, 2.23 g/t Au, 0.07% Pb, and 0.18% Zn (1,369 g/t AgEq) over 0.35m; hole SAD-17-15 with 155 g/t Ag, 0.02g/t Au, 0.06% Pb, and 0.14% Zn (162 g/t AgEq) over 36.7m, including 200 g/t Ag, 0.02g/t Au, 0.07% Pb, and 0.19% Zn (210 g/t AgEq) over 16.85m, including 279 g/t Ag, 0.03 g/t Au, 0.12% Pb, and 0.32% Zn (296 g/t AgEq) over 6.81m, including 595 g/t Ag, 0.07g/t Au, 0.27% Pb, and 0.65% Zn (629 g/t AgEq) over 2.82m; including 854 g/t Ag, 0.06g/t Au, 0.28% Pb, and 0.27% Zn (876 g/t AgEq) over 1.38m, including 285 g/t Ag, 0.02g/t Au, 0.05% Pb, and 0.17% Zn (294 g/t AgEq) over 3.18m, including 138 g/t Ag, 0.02g/t Au, 0.07% Pb, and 0.11% Zn (145 g/t AgEq) over 15m, including 228 g/t Ag, 0.03g/t Au, 0.14% Pb, and 0.19% Zn (241 g/t AgEq) over 6.59m, including 435 g/t Ag, 0.06g/t Au, 0.28% Pb, and 0.37% Zn (460 g/t AgEq) over 3m; and hole SAD-17-16 with 192 g/t Ag, 0.1g/t Au, 0.02% Pb, and 0.05% Zn (202 g/t AgEq) over 2.31m, including  810 g/t Ag, 0.44 g/t Au, 0.07% Pb, and 0.1% Zn (851 g/t AgEq) over 0.35m.
  • Heliostar Metals Ltd., reported 80.4% average gold recovery from seven composites representative of the High Grade Panel at its Ana Paula project in Guerrero. Metallurgical process is based on a conventional 75 micron grind size and Carbon-in-Leach (CIL) flowsheet. Highlights of the metallurgical testwork include that gold recoveries range from 74.6 – 88.1% for these samples; gravity testwork suggests that greater than 31% of the gold may be gravity recoverable; and it confirms the company’s interpretation that recoveries from high-grade gold mineralization can utilize simpler, lower cost, conventional milling processes.
  • Minera Alamos Inc., reported maiden Mineral Resource Estimate (MRE) for its Santana project, Sonora. The table below shows the MRE by zone for the Santana project:
  • Tocvan Ventures Corp., identified several high priority target areas with historic workings and silicified breccias through its due diligence field work completes at its Pilar project in Sonora. Surface samples collected during due diligence of the area have been sent to the lab and assays are pending.

ON DEALS AND CORPORATE ISSUES

  • Impact Silver Corp., announced that its shares are now trading in the USA on the OTCQB market under the symbol “ISVLF”. The Company’s shares also continue to trade in Canada on the TSX Venture Exchange under the symbol “IPT” (Zacualpan project, State of Mexico).
  • Sierra Madre Gold and Silver Ltd., reported that its common shares are now eligible for electronic clearing and settlement through the Depository Trust Company (DTC) in the United States. Sierra Madre’s shares started trading on the OTCQX® Best Market this summer (La Guitarra Mine, State of Mexico).
  • Goldgroup Mining Inc., announced the appointment of its new CEO, effective October 1, 2023. The previous Interim CEO, will continue as the Company’s Chief Financial Officer.  (Cerro Prieto Mine, Sonora).
  • Orex Minerals Inc., signed a non-binding letter of intent (LOI) with Exploraciones El Cairo S.R.L. de C.V., to acquire 100% of the Valenciana property in Zacatecas. Since the LOI is non-binding, the negotiation of a definitive agreement is underway at this time, and such definitive agreement is expected to include a four months due diligence period, scaled option payments, and an area of influence and a 2% NSR on the original concessions, plus a 0.5% NSR on adjacent properties obtained from third party concession holders within the area of influence. “The Valenciana Property hosts high-grade epithermal gold and silver veins, with base metals of lead and zinc, in Cretaceous sedimentary units and Tertiary rhyolitic and monzonitic intrusive rocks. It is located on the Mesa Central within the prolific “Silver Trend” of Mexico”.
  • Radius Gold Inc., completed the issuance of 500K common shares at a deemed price of $0.24 per share, for a total deemed value of $120K to Bruce Smith, in part for his ongoing leadership as the Company’s President and Chief Executive Officer (Tropico project, Zacatecas).

ON SOCIAL RESPONSIBILITY

  • No relevant news.

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, diatreme breccia related to a flow banded rhyolite dome in a locality in Durango, Mexico. Photo by Miguel A Heredia.