During the 19th week of the year (May 8th to May 14th, 2023), 19 companies working in Mexico posted news releases. Three companies informed on exploration on their properties, eight companies informed on Q1 2023 or full-year 2023 production/financial results, one company informed on the termination of an illegal blockade. One company announced the opening of a financing round. Assay results were released on an advanced property in Sinaloa, and a mill started test work in Nayarit. ON MEXICO ISSUES, Fitch Ratings warned on the impact of the new mining law, specially in exploration activities. ON EXPLORATION, in Sinaloa, Vizsla Silver reported drilling results from Panuco; Prismo Metals started drilling at Palos Verdes. In Jalisco, Stroud Resources provided a summary of the 2021-2022 drilling at Santo Domingo Hostotipaquillo. ON MINING, Endeavour Silver, GoGold Resources, Mag Silver, Avino Silver, Torex Gold, Pan American Silver, Golden Minerals, SilverCrest Metals released Q1 2023 production reports. Fortuna Silver informed on the termination of the illegal blockade at its San José mine in Oaxaca. ON FINANCING, Stroud Resources is to raise up to C$1.5 M. ON RESOURCES AND DEVELOPMENT, Oroco Resource released assay results from its Santo Tomás project in Sinaloa. Xali Gold informed its optioned processing plant in Nayarit has begun test work. ON DEALS AND CORPORATE ISSUES, GR Silver updated on work at its Plomosas project in Sinaloa. Silver Valley informed on negotiations with the Mexican Lithium Agency pertaining a possible partnership involving the lithium component of its properties in Mexico. ON SOCIAL RESPONSIBILITY, Zacatecas Silver continues to build its relationship with the Tetlama community in Morelos.
ON MEXICO ISSUES
Fitch Ratings stressed that the new mining law is to have far-reach implications in the Mexican mining industry, as it is to slow the pace of exploration, shorten the concessions term and generate worries on the operational continuity, and also to revitalize community negotiations. Even as the details are still to be defined, exploration is the activity that will be hit the hardest, with exploration activities now to be conducted by the Servicio Geológico Mexicano (SGM) and later expanded by special collaboration agreements.
Stroud Resources Ltd. provided a summary of the 2021-2022 drilling program at its Santo Domingo property in Hostotipaquillo, Jalisco. The program consisted of 9,936 m in 32 holes to explore the extent of known vein-hosted epithermal mineralization and to define additional parallel systems. Highlighted core length intervals comprise 1.55 m @ 624 gpt Ag; 47.70 m @ 0.18 gpt Au, 42 gpt Ag, 0.1% Pb, 0.4% Zn; 48.90 m @ 0.42 gpt Au, 41 gpt Ag; 68.35 m @ 0.18 gpt Au 66 gpt Ag; 34.70 m @ 1.23 gpt Au, 60 gpt Ag; 32.15 m @ 0.55 gpt Au, 106 gpt Ag; 36.80 m @ 0.23 gpt Au, 141 gpt Ag, 0.2% Pb, 2.0% Zn; 24.00 m @ 0.13 gpt Au, 105 gpt Ag; 14.70 m @ 0.78 gpt Au, 165 gpt Ag; 34.70 m @ 1.23 gpt Au, 60 gpt Ag, 0.6% Pb, 1.8% Zn; 35.45 m @ 0.17 gpt Au, 47 gpt Ag. “To date, the Santo Domingo Project has approximately 85 drill holes totalling 18,184 metres”.
Vizsla Silver Corp. reported results from 16 expansion holes at its Panuco project in Sinaloa. These expansion holes targeted the Copala resource area, with highlighted true width intervals comprising 5.89 m @ 1,403 gpt Ag, 4.24 gpt Au (or 1,591 gpt AgEq); 4.90 m @ 345 gpt Ag, 1.12 gpt Au (or 396 gpt AgEq); 2.14 m @ 1,319 gpt Ag, 22.46 gpt Au (or 2,743 gpt AgEq); 1.45 m @ 789 gpt Ag, 5.13 gpt Au (or 1,080 gpt AgEq). “Ongoing drilling at Copala has now traced mineralization along ~1,250 metres of strike length and ~400 metres down dip…… Vizsla has to date completed 35,000 m of its planned 90,000 m 2023 drill program”.
Prismo Metals Inc. has started the drilling program at its Palos Verde project in Sinaloa. The at least 2.500 m drilling is to test the 65% of the Palos Verdes structure that has not been drilled, along with some other veins that have been mapped. The company is trying to intercept large ore shoots as in the adjacent Panuco project (See above).
Endeavour Silver Corp. announced its financial and operating results for Q1 2023. During the period 1.62 M Oz Ag, 9,342 Oz Au (or 2.4 M Oz AgEq) were produced at $11.12 per Oz Ag and an AISC of $20.16 per Oz Ag, net of gold credits. Cash position was $61.6 M at the end of the period, and working capital $92.8 M. The company is going ahead with the development of the Terronera project in Jalisco, with over $58 M invested to date
GoGold Resources Inc. announced the financial results for Q1 2023. The company produced 173.7 K Oz Ag, 2,016 Oz Au, 143 tonnes Cu, at adjusted cash cost of $14.00 per Oz AgEq and adjusted AISC of $19.76 per Oz AgEq. Revenue was $7.6 M on the sale of 355.7 K Oz AgEq. Cash on hand is US$100.9 M (Parral tailings, Chihuahua).
Mag Silver Corp. released unaudited financial results for Q1 2023. Concentrate production has commenced at the Juanicipio mine in Zacatecas (Fresnillo 56%, MAG 44%), containing 2 M Oz Ag, 5,291 Oz Au, 1,281 tonnes Pb, 1,656 tonnes Zn. MAG reported net income of $4.7 M, and closed a $42.6 M offering of shares and a $17.1 M private placement during the period.
Fortuna Silver Mines Inc. reported that the illegal blockade at its San Jose Main in Oaxaca has been lifted. The company and union workers have reached an agreement to resume operations at the mine and processing plant which recommenced on May 10, 2023.
Avino Silver & Gold Mines Ltd. released its consolidated financial results for the first quarter of 2023. During the period, the company milled 159.8 K tonnes at Avino, in Durango, to produce 234.3 K Oz Ag, 2,286 Oz Au, 1.4 M Lb Cu (678.2 K Oz AgEq), at cash cost of $14.22 per Oz AgEq and an AISC of $20.17 per Oz AgEq. Revenues of $9.8 M were impacted by timing of concentrate shipments, EBITDA was $0.3 M, cash provided by operating activities of $0.4 M. The dry-stack tailings facility is now complete and fully operational. The company is assessing the continuity of mineralization to depth, with mineralization extending at least 800 m downdip … “it appears that the Avino vein is getting richer in copper as we go deeper with a grade of 1.63% copper over 16.66 metres” intercepted at depth.
Torex Gold Resources Inc. reported financial and operational results for Q1 2023. During the period the company produced 122,918 Oz Au at its El Limón-Guajes property in Guerrero, milling 13,073 tpd and mining form ELG underground. Cash cost was $709 per Oz Au and AISC of $1,079 per Oz Au. Reported income of $68.2 M and adjusted earnings of $50.3 M. The company has reserves of 38.6 M tonnes @ 2.91 gpt Au, 17.1 gpt Ag, 0.58% Cu at the Morelos Complex in Guerrero, 47.8 M tonnes @ 3.33 gpt Au, 22.6 gpt Ag, 0.80% Cu in measured and indicated resources and 15.8 M tonnes @ 2.49 gpt Au, 23 gpt Ag, 0.86% Cu in inferred resources. The quarter closed with net cash of $318.4 M.
Pan American Silver Corp. reported unaudited results for the Q1 2023, without figures or specific news on its Mexican properties.
Golden Minerals Co. released financial results for Q1 2023. Revenue was $4.2 M, net operating margin $0.2 M related to the Rodeo mine operations in Durango, where 2,081 Oz Au, 11,535 Oz Ag were produced. Golden is assessing the possibility of restarting the Velardeña property mining operations in Durango. During the period a maiden resource of 937 K tonnes @ 570 gpt Ag was announced on its Yoquivo property, in Chihuahua, and the return of the Santa Maria property, also in Chihuahua, by Fabled Silver. The company had $2.0 M in cash and cash equivalents by the end of the period.
SilverCrest Metals Inc. announced its financial and operational results for the first quarter 2023. Undeground mining rates at Las Chispas, in Sonora, averaged 707 tonnes per day (tpd), processing 1,160 tpd with an estimated 40% of production feed sources from stockpiles. Grades averaged 4.06 gpt Au, 419 gpt Ag, recovering 97.5% Au, 91.0% Ag, to produce 13,300 Oz Au, 1.29 M Oz Ag (2.45 M Oz AgEq), at cash cost $6.57 per Oz AgEq and AISC of $11.45 per Oz AgEq. The company had revenue of $58.0 M, resulting in mine operating income of $35.6 M with net free cash flow of $19.3 M, ending the quarter with cash of $45.8 M and net cash of $21.0 M.
Stroud Resources Ltd. announced a non-brokered private placement to raise up to C$1.5 M (Santo Domingo Hostotipaquillo, Jalisco).
ON RESOURCES AND DEVELOPMENT
Oroco Resources Corp. released assay results for the last two drill holes of the 2021-2023 program, which test the North Zone of its Santo Tomás project in Sinaloa. Highlighted core length results comprise 185.4 m @ 0.27% Cu, 0.013 gpt Au, 1.1 gpt Ag; 228.5 m @ 0.43% Cu, 0.035 gpt Au, 2.52 gpt Ag in one hole and 387.4 m @ 0.45% Cu, 0.043 gpt Au, 3.0 gpt Ag; 39.0 m @ 0.26%, 0.012 gpt Au, 1.68 gpt Ag in the other. “The North Zone program comprises 47 diamond drill holes and 30,909 m of drilling”.
Xali Gold Corp. advised that Minera Cinco Reales S.A. de C.V. has commenced work on the San Dieguito de Arriba plant in Nayarit. The company is planning to carry their first bulk sample test by the end of May. The company will be allowed to conduct the bulk test work while the environmental impact permit is authorized. “Xali Gold will have the right to receive 15% of the net profits from any mineral that is processed at the SDA Plant”.
ON DEALS AND CORPORATE ISSUES
GR Silver Mining Ltd. updated on work and plans for 2023 at its 43,187 ha. Plomosas project in Sinaloa. The property hosts intermediate to low sulfidation epithermal mineralization on the Plomosas, San Marcial and San Juan-La Colorada areas, on which a new resource estimate was filed early this month, based in 60,020 m of drilling in 424 holes. Indicated resources stand at 15 M tonnes @ 117 gpt Ag containing 55 M Oz Ag, or 179 gpt AgEq, containing 85 M Oz AgEq. Inferred resources stand at 9 M tonnes @ 78 gpt Ag, containing 22 M Oz Ag, or 171 gpt AgEq, holding 49 M Oz AgEq. A drill rig has been mobilized to the SE Area in San Marcial and a 12,500 m drilling exploration program has been recommended. On the cost reduction initiative, staff has been reduced by 38% and vehicles by 50%, “with executives taking reduced cash salaries and directors waiving cash fees.”
Silver Valley Metals Corp. provided an update on its MexicCan Lithium-Potassium project in Zacatecas-San Luis Potosí. The company “has been in discussions with LitioMX, (the national lithium company of Mexico)” pertaining the possibility of forming a partnership for exploration and production on Silver Valley’s concessions. “The negotiation is focused solely on the lithium component of the multi-commodity deposit(s). This represents an inferred resource of 243,000 tonnes of lithium carbonate equivalent (LCE) defined to date at surface to an average depth of only 5 metres”.
ON SOCIAL RESPONSIBILITY
Zacatecas Silver Corp. continues to build on its relationship with the Tetlama community, on its Esperanza project in Morelos. “The Company continues to provide on-going social benefit support with programs currently implemented including: medical assistance, funerary compensation, educational scholarships, and the community forest fire fighting brigade”. The company is combining resources with the community nucleus for the construction of the first stage of a new community cemetery.
On the image below: Silicified breccia-vein ridge in a copper project in the Sonoran Desert. Picture by Jorge Cirett.
Quartz veining hosted in a hydrothermaly-altered intrusive
By Miguel A Heredia
During the 18th week of the year (May 1st to May 7th, 2023), at least 28 press releases were announced by companies working in Mexico, and 2 news published by the media, with eleven reporting resources and developments of their properties, six commenting on Mexican issues, four communicating production and financial results, three disclosing deals and corporate issues, three announcing financing issues, two informing on exploration results, and one discussing social issues. ON MEXICO ISSUES, Fortuna Silver reported an illegal blockade at its San Jose mine in Oaxaca. At least 40 companies from Canada and the United States that operate in Mexico expressed their intention to protect themselves after the approval of the reforms to the Mining Law. Chesapeake has initiated legal proceedings against the Dirección General de Minas of Mexico (DGM) with the Federal Court of Administrative Justice in the state of Durango, Mexico in response to the DGM’s cancellation of the San Vicente 3 mineral concession. Radius filed a legal demand with a Federal Mexican Court to obtain title to the Amelia 4 mining concession at its Amalia project in Chihuahua. The Senate of Mexico approved the mining reform that reduces and facilitates the cancellation of concessions. Bendito Resources, Infinitum Copper, Pan American Silver, and Silver Tiger reported the best drilling intercepts in Mexico on the first week of May, 2023. ON EXPLORATION, In Sonora, Infinitum Copper reported results from 6 of 12 drill holes collared at its Adelita project. In Chihuahua, Reyna Silver provided an update on their Batopilas and Guigui projects. ON MINING, Capstone, Argonaut, and First Majestic reported Q1, 2023 production and financial results for their Mexican operations. Minera Alamos reported full year 2022 production and financial results from its Santana property in Sonora. ON FINANCING, Sonoro Gold announced it plans to undertake a non-brokered private placement for gross proceeds of up to CAD $3M (Cerro Caliche project, Sonora). Kootenay announced a private placement for gross proceeds of $4M (Columba project, Chihuahua). First Majestic announced that its Board of Directors has declared a cash dividend payment in the amount of $0.0057 per common share for Q1, 2023. ON RESOURCES AND DEVELOPMENT, Xali received the change in soil use permit for its El Oro Tailings project in Mexico State. Bendito Resources presented results from the last 9 of 18 RC holes drilled at its El Alacran project in Sonora. Silver Tiger announced results from its ongoing drill program at its El Tigre project in Sonora. Capstone reported Mineral Reserves and Mineral Resources for its Cozamin property in Zacatecas as at January 1, 2023. GR Silver filed a NI 43-101 technical report to provide an updated resource estimate for its Plomosas project in Sinaloa. GoGold released additional results from its ongoing drilling campaign at its Los Ricos South project in Jalisco. Oroco presented a Mineral Resource Estimate as of April 21, 2013 for its Santo Tomas project in Sinaloa. Prime announced an updated Mineral Resource Estimate for its Los Reyes property in Sinaloa. Pan American Silver released results of eighth holes drilled at La Colorada Skarn project in Zacatecas. Minera Alamos announced positive results of an independent Preliminary Economic Assessment for its Cerro de Oro project in Zacatecas. Torex provided the second quarterly update on its Media Luna project in Guerrero. ON DEALS AND CORPORATE ISSUES, Bear Creek announced its CEO succession (Mercedes mine, Sonora). GR Silver announced the retirement of its CFO and the appointment of its replacement (Plomosas project, Sinaloa). Tarachi signed a definitive agreement for the sale of Magistral Tailings project in Durango. ON SOCIAL RESPONSIBILITY, Almaden completed a social impact assessment relating to its Ixtaca project in Puebla, and underlying mineral claim area.
ON MEXICO ISSUE
Fortuna Silver Mines Inc., reported an illegal blockade at its San Jose mine in Oaxaca due to a group of workers did not agree with the estimated amount the Company is to distribute among the workforce as part of the worker´s profit sharing entitlement. Profit sharing is a transparent calculation and is payable in accordance with Mexican legislation. As a consequence, operations at the mine have been temporarily halted.
At least 40 companies from Canada and the United States that operate in Mexico expressed their intention to protect themselves after the approval of the reforms to the Mining Law by the government because they consider that they are violating their rights and that they are being changing the rules of the game. The law firm Von Wobeser y Sierra, anticipated that they will also consider the international arbitration considered as a mechanism to resolve disputes within the framework of the Free Trade Agreement between Mexico, the United States and Canada (T-MEC) and the Trans-Pacific Economic Cooperation Agreement (TPP). The elimination of the concepts of Free Land and First Applicant are the elements that most concern companies because with them the government could “legalize” the non-granting of concessions to private parties, by giving the exploration monopoly to the Mexican Geological Service (SGM). ), warned the Mining Chamber of Mexico (Camimex). Until now, the Canadian mining company Silver Bull Resources presented in March to the International Center for Settlement of Investment Disputes (ICSID) its intention to claim economic damages for at least USD $178M for the blockade of its Sierra Mojada Project since September 2019. The American Vulcan Materials presented to ICSID a claim for an estimated damage of at least USD 1.9 B against Mexico for the closure and occupation of the Sac-Tun mine (formerly Calica) and the Punta Venado pier in Playa del Carmen. A resolution on this issue is pending since May 2022.
Chesapeake Gold Corporation has initiated legal proceedings against the Dirección General de Minas of Mexico (DGM) with the Federal Court of Administrative Justice in the state of Durango, Mexico in response to the DGM’s cancellation of the San Vicente 3 mineral concession, on the basis that the Company did not provide adequate evidence to support the Company’s performance of the exploration work required to maintain the concession. The Company’s legal position, approved by external Mexican legal counsel, is that the work required to maintain the concession was conducted on the property and appropriate evidence was submitted to the DGM to substantiate the work. The San Vicente 3 mineral concession is one of 12 mineral concessions comprising the Metates property, representing 700 hectares of the 4,260 hectares in the Metates project, and encompasses a portion of the Metates mineral resource. The Company intends to vigorously defend its position with respect to the San Vicente 3 mineral concession.
Radius Gold Inc., filed a legal demand with a Federal Mexican Court to obtain title to the Amelia 4 mining concession at its Amalia project in Chihuahua. “Radius and project JV partner Pan American Silver Corp. have completed all the requirements, fee payments and surveys for the Amalia 4 application. The mining authority of Chihuahua has processed and approved the submission without fault and passed the license to the Mexico Mining Directorate proposing title issuance. The regulated time for the mining authority to comment and request revision has passed and granting of title is a legal requirement under the mining law. Radius has filed a legal demand to enforce the granting of title. Radius legal counsel believes the Company has clear legal right to the application and title. Legal counsel has been successful in obtaining granted concessions in similar situations recently”.
The Senate of Mexico approved the mining reform that reduces and facilitates the cancellation of concessions. The legal changes were approved despite Canada’s claim and in an express session in which twenty laws and reforms were endorsed in just five hours. The senators approved modifications to the Mining, National Water, General Ecological Balance and Environmental Protection laws, and the General for the Prevention and Integral Management of Waste. The reform will allow the government to only grant mining concessions through a public tender and with prior consultation with indigenous peoples, in addition to facilitating the revocation of the license for environmental damage. The reform could generate tensions with the partners of the T-MEC, in particular with Canada, which has already complained in recent days. The Canadian Minister of International Trade, Mary Ng, revealed last Wednesday that she spoke with the Secretary of the Economy of Mexico, Raquel Buenrostro, to express the “concern” of the Canadian government with the then proposed reform of the country’s mining sector, in the that Canadian companies constitute the largest foreign investor.
GoGold Resources Inc., Bendito Resources Inc., Infinitum Copper Corp., Pan American Silver Corp., and Silver Tiger Metals Inc., reported the best drilling intercepts in Mexico on the first week of May, 2023. Details are shown in the table below:
Infinitum Copper Corp., reported results from 6 of 12 drill holes collared at its Adelita project in Sonora. Drilling highlights include hole ADD-22-0021 with 0.51% Cu, 0.16 g/t Au, 16 g/t Ag, and 0.6% Zn (1% CuEq) over a true width (TW) of 19.85m, including 0.83% Cu, 0.22 g/t Au, 22 g/t Ag and 0.8% Zn (1.51% CuEq) over a TW of 7.98m, including 0.41% Cu, 0.16 g/t Au, 14 g/t Ag, and 0.5% Zn (0.83% CuEq) over a TW of 8.69m; and hole AD-22-0028 with 0.8% Cu, 0.35 g/t Au, and 19 g/t Ag (1.22% CuEq) over a TW of 48.7m, including 0.85% Cu, 0.31 g/t Au, and 29 g/t Ag (1.34% CuEq) over a TW of 20.38m, including 1.03% Cu, 0.51 g/t Au, and 16 g/t Ag (1.54% CuEq) over a TW of 20.76m. “AD-22-0028 is the only drill hole which has intersected the large and distinct magneto-telluric anomaly on the eastern flank of the Cerro Grande anticline”. The intersection of hole AD-22- 0028 is open to the north, east and west.
Reyna Silver Corp., provided an update on their Batopilas and Guigui projects in Chihuahua. At Batopilas, Chihuahua, the company has carried out detailed sampling and structural programs, as well as conducted a detailed AMT geophysics study to outline major structures and features that may control vein control and location of mineralization, as well as to understand the historic ore shots geometry and mineralization surface expressions , including the newly identified gold-bearing structures. The company plans to drill again in the property a minimum of 3,000m once the final combining of the historical data, drill results, and detailed follow-up work is complete. At Guigui project, Chihuahua, the previous Phase 1 and 2 of drilling revealed critical components of an important CRD system. These drill programs identified a 0.5 square km skarn footprint that remains open in all directions. The company recently executed a Natural Source Audio MagnetoTellurics (NSAMT) survey and is waiting for the final interpretation to integrate into the developing drill-target model for the Phase 2 drilling program this year.
Capstone Copper Corp., reported Q1, 2023 production and financial results from its Cozamin property in Zacatecas. The company produced 11.65M Lb Cu at a cash cost of 1.72 per Lb Cu produced. Realized copper price was USD $4.17 per Lb.
Argonaut Gold Inc., reported production and financial results from their Mexican operations. At La Colorada, Sonora, the company reported that it sold 5,086 Oz Au; a cost of sales of USD $12.7M; a cost of sales per Oz Au sold of USD $2,505; a production cost of USD $8M; a cash and all in sustaining cost per Oz Au sold of USD $2,229 and USD $2,333 respectively. At San Agustin, Durango, it reported that 11,491 Oz Au were sold; a cost of sales of USD $22.7M; a cost of sales per Oz Au sold of USD $1,980; a production cost of USD $17.4M; a cash and all in sustaining cost per Oz Au sold of USD $1,558 and USD $1,627 respectively. At El Castillo, Durango, the company reported that it sold 7,358 Oz Au; a cost of sales of USD $14.5M; a cost of sales per Oz Au sold of USD $1,976; a production cost of USD $8.3M; a cash and all in sustaining cost per Oz Au sold of USD $1,675 in both cases.
First Majestic Silver Corp., reported Q1, 2023 production and financial results from their Mexican operations. Figures by mine operation is shown in the table below:
Minera Alamos Inc., reported full year 2022 production and financial results from its Santana property in Sonora. The company recovered and sold 11.67K Oz Au and reported revenue s of $21.7M; costs of goods sold of $13.5M for gross profits of $8.18M; net income of $5.6M; cash and cash equivalents of $13.15M; and working capital as of December 31, 2022 of $18.3M.
Sonoro Gold Corp., announced it plans to undertake a non-brokered private placement for gross proceeds of up to CAD $3M. The company will use the net proceeds to fund the ongoing development of a proposed heap leach mining operation at its Cerro Caliche project in Sonora.
Kootenay Silver Inc., announced a private placement for gross proceeds of $4M. Gross proceeds will be used for working capital requirements and other general corporate purposes (Columba project, Chihuahua).
First Majestic Silver Corp., announced that its Board of Directors has declared a cash dividend payment in the amount of USD $0.0057 per common share for Q1, 2023. The first quarter cash dividend will be paid to holders of record of First Majestic’s common shares as of the close of business on May 18, 2023, and will be distributed on or about June 9, 2023.
ON RESOURCES AND DEVELOPMENT
Xali Gold Corp., and its partner Sun River Gold Corp., received the change in soil use permit for its El Oro Tailings project in Mexico State. This is the main permit required for the El Oro Tailings project that allows moving out the tailings from the historical deposition site which is within the town of El Oro and to the industrial processing site outside of the town.
Bendito Resources Inc., presented results from the last 9 of 18 RC holes totaling 2,031m drilled at its El Alacran project in Sonora as part of the 2023 Phase 1 exploration program focused on demonstrating the southeastward extension of mineralization from the historical resources established at Loma Bonita and Mesa de Plata. Drilling highlights include hole BSS-23-011 with 0.13 g/t Au and 9 g/t Ag (0.24 g/t AuEq) over 33m, including 0.26 g/t Au and 20 g/t Ag (0.5 g/t AuEq) over 3m, plus 0.89 g/t Au and 22 g/t Ag (1,15 g/t AuEq) over 27m, including 1.89 g/t Au and 32 g/t Ag (2.27 g/t AuEq) over 6m, plus 1.32 g/t Au and 36 g/t Ag (1.74 g/t AuEq) over 3m; hole BSS-23-015 with 0.45 g/t Au and 2 g/t Ag (0.48 g/t AuEq) over 24m, including 2.37 g/t Au and 1 g/t Ag (2.39 g/t AuEq) over 3m, plus 0.27 g/t Au and 14 g/t Ag (0.44 g/t AuEq) over 63m, including 0.49 g/t Au and 39 g/t Ag (0.94 g/t AuEq) over 15m, plus 0.11 g/t Au and 17 g/t Ag (0.31 g/t AuEq) over 52.5m, including 0.21 g/t Au and 42 g/t Ag (0.71 g/t AuEq) over 7.5m; hole BSS-23-016 with 0.31 g/t Au and 11 g/t Ag (0.45 g/t AuEq) over 66m, including 2.26 g/t Au and 4 g/t Ag (2.3 g/t AuEq) over 7.5m, 8.06 g/t Au and 1 g/t Ag (8.07 g/t AgEq) over 1.5m, plus 0.15 g/t Au and 4 g/t Ag (0.2 g/t AuEq) over 19.5m, plus 0.16 g/t Au and 2 g/t Ag (0.19 g/t AuEq) over 12m; and hole BSS-23-018 with 0.16 g/t Au and 4 g/t Ag (0.21 g/t AuEq) over 9m, plus 0.08 g/t Au and 39 g/t Ag (0.53 g/t AuEq) over 93m, including 0.08 g/t Au and 84 g/t Ag (1.07 g/t AuEq) over 7.5m, plus 0.09 g/t Au and 59 g/t Ag (0.79 g/t AuEq) over 15m.
Silver Tiger Metals Inc., announced results from its ongoing drill program at its El Tigre project in Sonora. Highlights of the ongoing drilling program include hole ET-23-457 in the Sulphide Zone with 0.11 g/t Au, 297 g/t Ag, 0.28% Cu, 1.4% Pb, and 2.2% Zn (439 g/t AgEq) over 38.7m, including 0.17 g/t Au, 693 g/t Ag, 0.6% Cu, 3% Pb, and 4.6% Zn (987 g/t AgEq) over 15.8m, including 0.15 g/t Au, 1,100 g/t Ag, 0.87% Cu, 5.1% Pb, and 8% Zn (1,581 g/t AgEq) over 6.3m, including 0.13 g/t Au, 1,246 g/t Ag, 1% Cu, 6.4% Pb, and 13.4% Zn (1,949 g/t AgEq) over 3.4m, including 0.15 g/t Au, 1,943 g/t Ag, 1.58% Cu, 7.3% Pb, and 10.9% Zn (2,642 g/t AgEq) over 0.6m. “This hole added an additional 100 metres of down dip extent to east from Hole 428 to 457 and what it was thought was a thin zone of a little over a meter went to almost 39 meters of high grade mineralization. Step out drilling now continues south”.
Capstone Copper Corp., reported Mineral Reserves and Mineral Resources for its Cozamin property in Zacatecas as at January 1, 2023. The company announced Probable Mineral Reserves of 10.2M tonnes with grades of 1.6% Cu, 43 g/t Ag, 0.5% Zn, and 0.3% Pb. It also presented Measured + Indicated Resources of 19.7M tonnes with grades of 1.58% Cu, 47 g/t Ag, 1.1% Zn, and 0.4% Pb, and Inferred Resources of 12.3M tonnes with grades of 0.72% Cu, 38 g/t Ag, 2% Zn, and 0.8% Pb. (Mineral Reserve is reported inclusive of Mineral Resource).
GR Silver Mining Ltd., filed a NI 43-101 technical report to provide an updated resource estimate for its Plomosas project in Sinaloa as of March 15, 2023. The company reported Indicated Resources of 15M tonnes with grades of 117 g/t Ag, 0.18 g/t Au, 0.4% Pb, 0.6% Zn, and 0.03% Cu (179 g/t AgEq) for a total of 55M Oz Ag, 84.5K Oz Au, 143.4M Lb Pb, 201-6M Lb Zn, and 8.96M Lb Cu (85M Oz AgEq) and Inferred Resources of 9M tonnes with grades of 78 g/t Ag, 0.38 g/t Au, 0.7% Pb, 1% Zn, and 0.03% Cu (171 g/T AgEq) for a total of 22M Oz Ag, 108.2K Oz Au, 143.4M Lb Pb, 203.8M Lb Zn, and 6.7M Lb Cu (49M Oz AgEq).
GoGold Resources Inc., released additional results from its ongoing drilling campaign at Eagle Area within its Los Ricos South project in Jalisco. Drilling highlights include hole LRGAG-22-162 with 6.07 g/t Au and 1,064 g/t Ag (20.26 g/t AuEq or 1,519 g/t AgEq) over 31m, including 19.38 g/t Au and 3,922 g/t Ag (71.67 g/t AuEq or 5,375 g/t AgEq) over 8.1m, including 144 g/t Au and 36,319 g/t Ag (628.25 g/t AuEq or 47,119 g/t AgEq) over 0.7m; hole LRGAG-22-147 with 1.06 g/t Au and 41 g/t Ag (1.63 g/t AuEq or 122 g/t AgEq) over 46.6m, including 3.24 g/t Au and 76 g/t Ag (4.25 g/t AuEq or 319 g/t AgEq) over 13.4m, including 24.3 g/t Au and 45 g/t Ag (24.9 g/t AuEq or 1,867 g/t AgEq) over 0.8m; hole LRGAG-22-150 with 6.96 g/t Au and 65 g/t Ag (7.83 g/t AuEq or 587 g/t AgEq) over 11.3m, including 12.02 g/t Au and 100 g/t Ag (13.36 g/t AuEq or 1,002 g/t AgEq) over 6.3m, including 32.1 g/t Au and 157 g/t Ag (34.19 g/t AuEq or 2,564 g/t AgEq) over 1.1m; hole LRGAG-22-158 with 2.19 g/t Au and 138 g/t Ag (4.03 g/t AuEq or 302 g/t AgEq) over 24.6m, including 3.87 g/t Au and 340 g/t Ag (8.41 g/t AuEq or 631 g/t AgQ) over 8.8m, including 13.06 g/t Au and 2,660 g/t Ag (48.52 g/t AuEq or 3,639 g/t AgEq) over 0.8m; and hole LRGAG-22-161 with 2.51 g/t Au and 339 g/t Ag (7.03 g/t AuEq or 527 g/t AgEq) over 33m, including 5.16 g/t Au and 945 g/t Ag (17.76 g/t AuEq or 1,332 g/t AgEq) over 9.6m, including 19.58 g/t Au and 3,665 g/t Ag (68.46 g/t AuEq or 5,134 g/t AgEq) over 1.3m. GoGold continues to work toward an upcoming updated Los Ricos South Mineral Resource and Preliminary Economic Assessment, which is expected to be completed by the end of June, 2023.
Oroco Resource Corp., presented a Mineral Resource Estimate as of April 21, 2023 for its Santo Tomas project in Sinaloa. The company reported Indicated Resources of 487.3M tonnes with grades of 0.32% Cu, 0.009% Mo, 0.03 g/t Au, and 2 g/t Ag (0.36% CuEq) for a total of 3.4 B Lb Cu, 91.9M Lb Mo, 392.8K Oz Au, and 32.7M Oz Ag (3.86 B Lb CuEq), and Inferred Resources of 599.9M tonnes with grades of 0.32% Cu, 0.007% Mo, 0.03 g/t Au, and 2 g/t Ag (0.36% CuEq) for a total of 4.17 B Lb Cu, 95.6M Lb Mo, 500.6K Oz Au, and 38.5M Oz Ag (4.69 B Lb CuEq). Oroco believes Santo Tomas has a substantial resource that is exposed at or near surface and has robust potential to support a large, low-cost open-pit mining operation. “The MRE confirms the high potential of the project, which remains open to the north and south, with clear potential for further expansion of the resource and further conversion of MRE Inferred resources to an Indicated resource classification”.
Prime Mining Corp., announced an updated Mineral Resource Estimate for its Los Reyes property in Sinaloa. The company reported in the Mill Category a total of 16.6M tonnes of Indicated Resources with grades of 1.66 g/t Au and 60 g/t Ag (2.44 g/t AuEq) for a total of 888K Oz Au and 32.18M Oz Ag (1.3M Oz AuEq) contained, and Inferred Resources of 10.8M tonnes of 1.18 g/t Au and 47 g/t Ag (1.79 g(/t AuEq) for a total of 411K Oz Au and 16.39M Oz Ag (623K Oz AuEq) contained. In the Heap Leach Category Prime reported a total of 10.5M tonnes of Inferred Resources with grades of 0.37 g/t Au and 9 g/t Ag (0.49 g/t AuEq) for a total of 125K Oz Au and 3.08M Oz Ag (165K Oz AuEq), and Inferred Resources of 7.3M tones of 0.37 g/t Au and 8 g/t Ag (0.47 g/t AuEq) for a total of 86K Oz Au and 1.9M Oz Ag (111K Oz AuEq). Indicated Resources (Mill + Heap Leach) are 27.2M tonnes of 1.16 g/t Au and 40 g/t Ag (1.68 g/t AuEq) for a total of 1.01M Oz Au and 35.5M Oz Ag (1.47M Oz AuEq) and Inferred Resources (Mill + Heap Leach) of 18.1M tonnes of 0.85 g/t Au and 31 g/t Ag (1.26 g/t AuEq) for a total of 497K Oz Au and 18.3M Oz Ag (734K Oz AuEq).
Pan American Silver Corp., released results of eighth holes drilled at La Colorada Skarn project in Zacatecas. Drilling highlights include hole D-96-10-22 with 391 g/t Ag, 0.13% Cu, 10.8% Pb, and 8.5% Zn over 64.3m, including 914 g/t Ag, 0.19% Cu, 25.2% Pb, and 16.7% Zn over 23.25m, plus 154 g/t Ag, 0.03% Cu, 2.2% Pb, and 0.9% Zn over 22.75m, plus 27 g/t Ag, 0.23% Cu, 2.5% Pb, and 5% Zn over 13.3m, plus 37 g(/t Ag, 0.14% Cu, 1.1% Pb, and 6.4% Zn over 135.7m; hole D-96-12-23 with 233 g/t Ag, 0.1% Cu, 6.6% Pb, and 7.3% Zn over 109.55m, including 487 g/t Ag, 0.15% Cu, 15.5% Pb, and 10.1% Zn over 44.7m, plus 54 g/t Ag, 0.03% Cu, 1.3% Pb, and 2.6% Zn over 18m; hole D-96-09-22 with 106 g/t Ag, 0.03% Cu, 1.3% Pb, and 2.6% Zn over 5m, plus 123 g/t Ag, 0.11% Cu, 3.5%Pb, and 8.6% Zn over 21.2m, plus 162 g/t Ag, 0.05% Cu, 3.5% Pb, and 3.5% Zn over 26.95m, plus 98 g/t Ag, 0.07% Cu, 0.8% Pb, and 4% Zn over 72.6m; hole D-98-11-22 with 165 g/t Ag, 0.12% Cu, 4.4% Pb, and 9.3% Zn over 17.05m, plus 134 g/t Ag, 0.05% Cu, 5.3% Pb, and 6.9% Zn over 6.4m, plus 56 g/t Ag, 0.05% Cu, 1.6% Pb, and 4.2% Zn over 9.90m, plus 152 g/t Ag, 0.02% Cu, 0.9% Pb, and 2.8% Zn over 20.5m, plus 79 g/t Ag, 0.06% Cu, 0.6% Pb, and 1.9% Zn over 14.55m; hole U-138-22 with 122 g/t Ag, 0.08% Cu, 2.7% Pb, and 5.3% Zn over 4.05m, plus 193 g/t Ag, 0.15% Cu, 10.8% Pb, and 9.3% Zn over 71.35m, including 231 g/t Ag, 0.17% Cu, 13-1% Pb, and 11% Zn over 57.95m, plus 49 g/t Ag, 0.14% Cu, 0.4% Pb, and 1.1% Zn over 40.3m; hole U-112-22 with 80 g/t Ag, 0.03% Cu, 1.3% Pb, and 1.2% Zn over 15.25m, plus 141 g/t Ag, 0.06% Cu, 5.8% Pb, and 5.5% Zn over 53.15m, including 243 g/t Ag, 0.08% Cu, 11.3% Pb, and 8.3% Zn over 15.15m, plus 66 g/t Ag, 0.07% Cu, 0.6% Pb, and 3.5% Zn over 14.7m, plus 25 g/t Ag, 0.08% Cu, 1.7% Pb, and 3.8% Zn over 32.95m; and hole D-93-06-23 with 304 g/t Ag, 0.17% Cu, 4.7% Pb, and 2.5% Zn over 21.45m, plus 17 g/t Ag, 0.07% Cu, 1.7% Pb, and 3.8% Zn over 5.05m, plus 40 g/t Ag, 0.02% Cu, 2.7% Pb, and 3.5% Zn over 31.2m, plus 27g/t Ag, 0.1% Cu, 2.9% Pb, and 4.7% Zn over 143.3m, plus 22 g/t Ag, 0.06% Cu, 3.7% Pb, and 5.9% Zn over 5.1m, plus 49 g/t Ag, 0.25% Cu, 1.5% Pb, and 4.4% Zn over 74.2m.
Minera Alamos Inc., announced positive results of an independent Preliminary Economic Assessment for its Cerro de Oro project in Zacatecas. In April, 2023 it also completed the documentation necessary to formally proceed with the Cerro de Oro permitting process. “Discussions continue with a number of interested lending partners to provide the modest capital funding requirements for the development of the Cerro de Oro mine”.
Torex Gold Resources Inc., provided the second quarterly update on its Media Luna project in Guerrero. The Media Luna project continues to track overall schedule and budget. “At quarter-end, the project was 24% complete across engineering, procurement, underground development, and surface construction. With no major changes to the project execution plan, first concentrate production remains on track for late 2024, with commercial production still anticipated in early 2025. At quarter end, 34% of upfront project expenditures had been committed, including 22% incurred. The level of spending on the project is expected to increase throughout the remainder of the year, with total project expenditures of USD $390M to USD $440M guided in 2023.
ON DEALS AND CORPORATE ISSUES
Bear Creek Mining Corporation announced its CEO succession after the previous one decided to retire from such position. This appointment will be effective on June 5, 2023 (Mercedes mine, Sonora).
GR Silver Mining Ltd., announced the retirement of its CFO and the appointment of its replacement effective immediately (Plomosas project, Sinaloa).
Tarachi Gold Corp., signed a definitive agreement dated May 2, 2023 with Compañía Minera de Atocha S.A. de C.V., for the sale of Magistral Tailings project in Durango. The company expects to receive USD $5.7M as follow: USD $2.5M on or before closing; USD $0.5 of the USD $1M currently held in Canadian escrow account will be released to Tarachi on or before closing; The remaining USD $500K in the escrow account will be released to Tarachi when Atocha concludes negotiations with the Ejido Magistral, or after 12 months, whichever occurs first; USD $500K will be paid to Tarachi six months from closing, less any contingency costs, if any, that arise after closing that were incurred by Tarachi but not identified during due diligence. US$500K will be paid to Tarachi when 50% of the tailings located on the Magistral Project have been mined, sold and/or processed or after the first complete calendar year of operation at the Magistral Project, whichever occurs first; USD $500K will be paid to Tarachi when 100% of the Magistral Tailings have been mined, sold and/or processed or after the second complete calendar year of operation at the Magistral Project, whichever occurs first; the amount of value-added tax currently owing as that tax benefit is realized by Atocha during operations and product sales from the Magistral Project will be paid to Tarachi, estimated to total approximately USD $650K. Tarachi anticipates the tax benefit will be realized by Atocha and paid to Tarachi within the first year of commercial operations at the Magistral Project.
ON SOCIAL RESPONSIBILITY
Almaden Minerals Ltd., completed a social impact assessment (SIA) relating to its Ixtaca project in Puebla, and underlying mineral claim area, and the completion of a human rights impact assessment (HRIA) that examines the potential impacts that could be caused if the Ixtaca project is developed in a manner consistent with the Ixtaca Feasibility Study. “The SIA concluded that there were no elements identified that would justify the cancellation of the concessions so long as the necessary social management measures were in place to avoid, mitigate or compensate for the potential negative impacts and amplify the positive ones. The HRIA represents a much more significant and holistic study than the SIA, as it aims to predict, identify, characterize, and assess the potential positive and negative impacts that the Ixtaca project could have during its lifespan on the human rights of both indigenous and non-indigenous communities located within its areas of influence and on other identified project stakeholders. In the event potential impacts are identified, the HRIA proposes strategies to amplify the positive and mitigate or compensate for the negative”.
During the 12th week of the year (March 20th to March 26th, 2023), at least 17 press releases were announced by companies working in Mexico, and 1 news published by the media with eight reporting resources and developments of their properties, five disclosing deals and corporate issues, two communicating production and financial results, one commenting on Mexican Issues, one informing on exploration results, and one discussing social issues. ON MEXICO ISSUES, Torex, Vizsla, and Discovery Silver reported the best drilling intercepts in Mexico on the fourth week of March, 2023. ON EXPLORATION, In Zacatecas, Radius announced the discovery and acquisition of a new gold property within the Fresnillo mining district. ON MINING, Golden Minerals announced full year 2022 production and financial results. Impact reported full year 2022 production and financial results from its Zacualpan mining district in the State of Mexico. ON FINANCING, no relevant news. ON RESOURCES AND DEVELOPMENT, Golden Minerals presented results of an initial Mineral Resource Estimate prepared for its Yoquivo project in Chihuahua. Vizsla announced results from seven holes drilled at its flagship Panuco project in Sinaloa. Fortuna Silver reported updated Mineral Reserve and Mineral Resource Estimates for its San Jose Mine in Oaxaca. Discovery Silver announced results from the Feasibility Study (FS) drill holes on its flagship Cordero property in Chihuahua. Torex reported encouraging results from the 2022 drilling program at EPO deposit within its Media Luna property in Guerrero. GR Silver announced significant updated Mineral Resource Estimate for its Plomosas project in Sinaloa. Southern Silver updated the Mineral Resource Estimate on its Cerro Las Minitas project in Durango. ON DEALS AND CORPORATE ISSUES, Capitan Mining announced name change to Capitan Silver Corp. (Cruz de Plata project, Durango). Radius entered into an option agreement to acquire 100% of the 200 hectares Tropico property within the Fresnillo mining district in Zacatecas. Heliostar announced that it returned to trading on the TSX Venture exchange (Ana Paula, Guerrero). Sierra Madre announced that it received approval for the acquisition of the La Guitarra property in the State of Mexico. Pan American and Yamana provided an update on the status of Pan American´s proposed acquisition of all the issued and outstanding common shares of Yamana. ON SOCIAL RESPONSIBILITY, Industrias Peñoles and Fresnillo plc, implemented a responsible water management policy in order to reduce their footprint water.
ON MEXICO ISSUE
Torex Gold Resources Inc., Vizsla Silver Corp., and Discovery Silver Corp., reported the best drilling intercepts in Mexico on the fourth week of March, 2023. Details are shown in the table below:
Radius Gold Inc., announced the discovery and acquisition of a new gold property within the Fresnillo mining district in Zacatecas. El Tropico project is located 30km NW of Fresnillo city and consists of hot spring type sinter and breccia pipe. Radius identified an elliptical zone of intensely silicified hydrothermal breccias approximately 450m by 250m in a flat zone and hosted in finely bedded siltstone and dirty limestone interpreted to be part of the Proaño Group which host the major Fresnillo deposit. Twenty eight rock chip samples were collected on the property with encouraging results. Au assays ranged from 0.02 g/t to 0.88 g/t, with an average of 0.28 g/t; Hg values are very high with many samples exceeding >100 ppm (the upper limit of detection); Sb values are very anomalous and ranged from 64 ppm to 1,135 ppm; As values ranged from 8 ppm to 854 ppm; and Ag values ranged from 0.6 g/t to 5.6 g/t.
Golden Minerals Company announced full year 2022 production and financial results from its Rodeo project in Durango. It produced 11,982 Oz Au and 32,179 Oz Ag at average realized sales prices of USD $1,805 and USDS $21.93 per Oz respectively. Total cash costs were USD $1,362 per payable Oz Au. Golden reported revenue of USD $23.3M; net operating margin of USD $5.7M; cash and equivalents balance as of December 31, 2022 of USD $4M; exploration expenses of USD $9.6M; and a net loss of USD 9.9M.
Impact Silver Corp., reported full year 2022 production and financial results from its Zacualpan mining district in the State of Mexico. The company processed 152,862 tonnes at a direct production cost of USD $97.49 per ton, to produce 633K Oz Ag. Impact sold 644.8K Oz Ag, and reported revenues of USD $16.3M; mine operating earnings before amortization and depletion of USD $1.2M; cash flow loss of USD $1.8M; balance sheet of USD $15.3M in cash and working capital of USD $16.4M. The company has not long-term debt.
No relevant news.
ON RESOURCES AND DEVELOPMENT
Golden Minerals Company filed a NI 43-101 Technical Report for its Yoquivo project in Chihuahua in which presented results of an initial Mineral Resource Estimate (MRE). The Yoquivo MRE include inferred resources for 937K tonnes with average grades of 410 g/t Ag and 2.1 g/t Au (570 g/t AgEq) for a total of 12.3M Oz Ag and 64K Oz Au (17.23M Oz AgEq) contained. The resource was not initially classified beyond Inferred. The company believes that a significant portion will be updated to Measured & Indicated in the next resource update.
Vizsla Silver Corp., announced results from seven holes drilled at its flagship Panuco project in Sinaloa. Drilling highlights (true widths reported) from the La Luisa Vein located 700m west of the Napoleon Vein include hole NP-22-332 with 2,699 g/t Ag, 24.99 g/t Au, 0.2% Pb, and 0.6% Zn (4,227 g/t AgEq) over 2.30m, including 11,502 g/t Ag, 120.5 g/t Au, 0.8% Pb, and 2.6% Zn (18,950 g/t AgEq) over 0.47m; hole NP-22-358 with 257 g/t Ag, 11.13 g/t Au, 0.4% Pb, and 2% Zn (1,076 g/t AgEq) over 5.6m, including 659 g/t Ag, 44.22 g/t Au, 0.5% Pb, and 2.3% Zn (3,698 g/t AgEq) over 1.1m, including 221 g/t Ag, 22.68 g/t Au, 0.3% Pb, and 0.5% Zn (1,761 g/t AgEq) over 0.27m, plus 174 g/t Ag, 0.77 g/t Au, 0.4% Pb, and 0.5% Zn (243 g/t AgEq) over 1.16m, plus 226 g/t Ag, 1.45 g/t Au, 1.2% Pb, and 8% Zn (633 g/t AgEq) over 1.27m; and hole NP-22-345 with 1,286 g/t Ag, 9.76 g/t Au, 0.9% Pb, and 2.3% Zn (1,967 g/t AgEq) over 2.5m, including 2,982 g/t Ag, 24.01 g/t Au, 1.8% Pb, and 5% Zn (4,630 g/t AgEq) over 0.99m, plus 42 g/t Ag, 1.55 g/t Au, 0.5% Pb, and 2.1% Zn (237 g/t AgEq) over 1.48m, plus 42 g/t Ag, 4.05 g/t Au, 0.2% Pb, and 2.9% Zn (426 g/t AgEq) over 2.53 m, plus 65 g/t Ag, 2.21 g/t Au, 0.1% Pb, and 2.6% Zn (306 g/t AgEq) over 1.70m. These results expand the high-grade footprint at La Luisa by over approximately 150m down dip from previously reported drill holes.
Fortuna Silver Mines Inc., reported updated Mineral Reserve and Mineral Resource Estimates as of December 31, 2022 for its San Jose Mine in Oaxaca. The company estimated Proven + Probable Reserves of 2.14M tonnes with grades of 172 g/t Ag and 1.16 g/t Au for a total of 11.8M Oz Ag and 80K Oz Au contained. It also reported Measured and Indicated Mineral Resources of 911K tonnes with grades of 109 g/t Ag and 0.72 g/t Au for a total of 3.2M Oz Ag and 21K Oz Au contained, and Inferred Resources of 2.52M tonnes with grades of 118 g/t Ag and 0.83 g/t Au for a total of 9.6M Oz Ag and 67K Oz Au contained. (Mineral Resources are exclusive of Mineral Reserves).
Discovery Silver Corp., announced results from the Feasibility Study (FS) drill holes on its flagship Cordero property in Chihuahua. Drilling highlights include hole C22-677 located 185m within the resource pit in the South Corridor with 77 g/t Ag, 0.16 g/t Au, 0.7% Pb, and 1.3% Zn (158 g/t AgEq) over 31.7m, plus 124 g/t Ag, 0.09 g/t Au, 1.2% Pb, and 1.9% Zn (241 g/t AgEq) over 38.5m; hole C22-687, toward the bottom and beneath the reserves pit in an area previously modeled as waste with 14 g/t Ag, 0.09 g/t Au, 0.2% Pb, and 1.3% Zn (75 g/t AgEq) over 50.3m, plus 35 g/t Ag, 0.06 g/t Au, 0.7% Pb, and 1.7% Zn (126 g/t AgEq) over 35.5m, plus 25 g/t Ag, 0.06 g/t Au, 0.6% Pb, and 2.2% Zn (133 g/t AgEq) over 27.4m; and hole C22-671 located approximately 1.5km northeast of the reserves pit with 137 g/t Ag, 0.05 g/t Au, 3.1% Pb, and 3.5% Zn (370 g/t AgEq) over 14.8m, plus 55 g/t Ag, 0.04 g/t Au, 0.9% Pb, and 1.5% Zn (141 g/t AgEq) over 23.1m. The FS drilling consisted of 30 drill holes and was focused on two key areas: 1) expansion of reserves within and beneath the Pre-Feasibility Study open pit and 2) upgrading and expansion of the resource in the far northeast of the deposit. The drilling results will be incorporated in a FS in conjunction with a resource update planned for the first half of 2024.
Torex Gold Resources Inc., reported encouraging results from the 2022 drilling program at EPO deposit within its Media Luna property in Guerrero. Drilling highlights include hole ML22-900D with 12.25 g/t Au, 72 g/t Ag, and 3.59% Cu (18.90 g/t AuEq) over 32.87m; hole ML22-924D with 5.32 g/t Au, 150 g/t Ag, and 5.77% Cu (16.38 g/t AuEq) over 17.23m, including 99.52 g/t Au, 91 g/t Ag, and 4.42% Cu (107.73 g/t AuEq) over 4.28m; hole ML22-886D with 4.93 g/t Au, 76 g/t Ag, and 3.11% Cu (10.83 g/t AuEq) over 35.05m; hole ML22-927 with 9.11 g/t Au, 11 g/t Ag, and 0.31% Cu (9.75 g/t AuEq) over 17.35m, plus 5.99 g/t Au, 21 g/t Ag, and 0.67% Cu (7.31 g/t AuEq) over 42.02m; hole ML22-926D with 1.35 g/t Au, 81 g/t Ag, and 3.86% Cu (8.54 g/t AuEq) over 32.1m; hole ML22-925D with 1.19 g/t Au, 46 g/t Ag, and 2.12% Cu (5.16 g/t AuEq) over 28.46m, plus 8.51 g/t Au, 137 g/t Ag, and 5.78% Cu (19.44 g/t AuEq) over 5.09m; hole ML22-909A with 1.71 g/t Au, 70 g/t Ag, and 2.88% Cu (7.17 g/t AuEq) over 14.78m, plus 2.1 g/t Au, 58 g/t Ag, and 2.82% Cu (7.33 g/t AuEq) over 18.34m; hole ML22-919D with 6.82 g/t Au, 35 g/t Ag, and 1.46% Cu (9.58 g/t AuEq) over 6.05m, plus 8.04 g/t Au, 11 g/t Ag, and 0.78% Cu (9.43 g/t AuEq) over 8.47m; hole ML22-815D with 8.58 g/t Au, 8 g/t Ag, and 0.41% Cu (9.33 g/t AuEq) over 14.71m; hole ML22-912D with 4.23 g/t Au, 8.21 g/t Ag, and 0.08% Cu (4.45 g/t AuEq) over 18.77m; and hole ML22-920A with 12.47 g/t Au, 16 g/t Ag, and 0.19% Cu (12.96 g/t AuEq) over 4.31m. The company informed that the drilling results were very encouraging and is expected to achieve the target of upgrading half of the current inferred resources to the indicated category. Torex is optimistic about the potential to further increase the size of EPO as the deposit remains open to the north, south, and west.
GR Silver Mining Ltd., announced significant updated Mineral Resource Estimate for its Plomosas project in Sinaloa. The company reported that there was an increase of 108% in Indicated Resources from 46M Oz AgEq to 97M Oz AgEq; 72% increase in Indicated Resources from 32M Oz Ag to 55M Oz Ag; 61% increase in Inferred Resources from 33M Oz AgEq to 53M Oz AgEq; 20% increase in Inferred Resources from 18M Oz Ag to 22M Oz Ag; 44% increase in average Indicated Mineral Resource grade from 143 g/t Ag to 206 g/t AgEq; and 65% increase in average Inferred Mineral Resource grade from 112 g/t Ag to 115 g/t Ag. At San Marcial, there was an increase of 80% in Indicated Mineral Resources from 36M Oz AgEq to 65M Oz AgEq; and a 65% increase in Inferred Mineral Resources from 12M Oz AgEq to 20M Oz AgEq. GR Silver reported Indicated Mineral Resources of 9.7M tonnes at 209 g/t AgEq (148 g/t Ag), and Inferred Mineral Resources of 3M tonnes at 200 g/t AgEq (145 g/t Ag). 71% of the value of the San Marcial Resource Estimate is comprised of Ag, and 91% of the 65M Oz AgEq San Marcial Indicated Resources are potentially amenable to open pit extraction. At Plomosas, there was an increase of 137% in the Indicated Mineral Resource tonnage; 260% increase in the Indicated Mineral Resource from 9M Oz AgEq to31M Oz AgEq; Ag and AgEq grade increased by 30% and 52% respectively; 20% of the total Indicated Mineral Resource is comprised of Ag, and 26% of the total Inferred Mineral Resource is comprised of Ag. It means that 46% of the Resource Estimate at Plomosas mine area is comprised of precious metals.
Southern Silver Exploration Corp., updated the Mineral Resource Estimate (MRE) on its Cerro Las Minitas project in Durango. The updated MRE significantly expanded sulphide resources in the La Bocona deposit. The newly modelled mineral resources represent an approximate 63% increase in the size of the La Bocona deposit (on an AgEq basis) and an overall 4.5% increase in the mineral resources of the entire project. The company reported Indicated Mineral Resources of 12.5M tonnes at grades of 106 g/t Ag, 0.07 g/t Au, 0.2% Cu, 1.3% Pb, and 3.3% Zn (349 g/t AgEq or 8.5% ZnEq) to contain 42.7M Oz Ag, 29K Oz Au, 46M Lb Cu, 364M Lb Pb, and 903M Lb Zn (140M Oz AgEq or 2,300M Lb ZnEq), and Inferred Mineral Resources of 21M tonnes at grades of 118 g/t Ag, 0.1 g/t Au, 0.2% Cu, 1.2% Pb, and 2.2% Zn (311 g/t AgEq or 7.6% ZnEq) to contain 80M Oz Ag, 85K Oz Au, 101M Lb Cu, 571M Lb Pb, and 1,029M Lb Zn to contain 210M Oz AgEq or 3,500M Lb ZnEq. “The new MRE incorporates results from 26 additional drill holes totalling 11,801.5m which tested the north-western extension the La Bocona deposit. Mineralization was also identified in several holes specifically along the northern margin of the central intrusion that were not incorporated into the new resource update and with further drilling, represent additional expansion opportunities”.
ON DEALS AND CORPORATE ISSUES
Capitan Mining Inc., announced name change to Capitan Silver Corp. Capitan Silver will continue to trade under the same symbol ‘CAPT’ on the TSX Venture Exchange and the number of shares outstanding will not change (Cruz de Plata project, Durango).
Radius Gold Inc., entered into an option agreement to acquire 100% of the 200 hectares Tropico property within the Fresnillo mining district in Zacatecas. Terms of the option include a payment on signing of USD $200K (completed); a further USD $200K payment which can be paid in 6 monthly installments over a period of 42 months, starting with USD $25K at month 12 from signing in order to maintain the property option. At month 48, Radius can acquire 100% of the property for USD $5M. An additional milestone payment of USD $5M is conditional on delivering a compliant feasibility study or at the start of mine construction. A further USD $3M to be paid if reserves exceed 2M Oz AuEq (Au + Ag ounces). If Radius does not complete payment of the milestone USD $5M within 8 years of signing, the property would return 100% to original owners.
Heliostar Metals Limited announced that it returned to trading on the TSX Venture exchange. “The Company can now submit the required documentation to return to trade on the OTCQX and will provide an update once the timeline is clear” (Ana Paula, Guerrero).
Sierra Madre Gold and Silver Ltd., announced that it received approval from the Federal Economic Competition Commission (COFECE), the Mexico´s antitrust agency for the acquisition of the La Guitarra property in the State of Mexico. With the receipt of this approval, closing of the acquisition is expected to take place on March 30,2023, followed by trade resumption of Sierra Madre shares shortly thereafter.
Pan American Silver Corp., and Yamana Gold Inc., provided an update on the status of Pan American´s proposed acquisition of all the issued and outstanding common shares of Yamana. Both companies informed that the Mexican Federal Economic Competition Commission approved the Pan American arrangement with Yamana and Agnico Eagle Mines Limited. All required regulatory, shareholders and court approvals, including the finall court order, have now been received and the arrangement is anticipated to be completed on or about March 31, 2023.
ON SOCIAL RESPONSIBILITY
Industriales Peñoles S.A.B. de C.V. and Fresnillo plc, implemented a responsible water management policy in order to reduce their footprint water. Both companies have proposed three guiding principles: resource efficiency, collaboration with other actors and transparency. Thus, Industrias Peñoles and Fresnillo plc reiterated their commitment to respect the human right to access to safe drinking water.
During the 7th week of the year (February 13th to February 19th, 2023), 13 companies working in Mexico released news on their properties. One company informed on a new exploration model for its projects. Two companies informed on Q4 2022 production and 2023 guidance. One company closed a first tranche on a financing round, while one other closed the previously announced private placement and one more granted shares and stock options to board members. One company filed a PFS on its project and one more updated on the resource estimate for one of its properties. Two companies informed on drilling results and work on their advanced properties. Two companies informed they have earned 50% interest in a project, and one other received notice of claims totaling US$19.7 M. ON MEXICO ISSUES, The Mexican president continues to assert his power by claiming that all lithium reserves will pass to a government’s company. The Sonora State Economy Secretary vigorously backed the importance of the mining industry in the State. ON EXPLORATION, in Coahuila, Southern Empire Resources claims mineralization at its properties in Durango might be of Carlin style. ON MINING, Gold Resource and Capstone Copper released Q4 2022 production or/and financial production reports and guidance for 2023. ON FINANCING, Reyna Silver closed the first tranche of its private placement (C$5 M), Mag Silver completed its bought deal private placement (C$23 M) and Orogen Royalties granted shares and stock options to independent board members. ON RESOURCES AND DEVELOPMENT, Discovery Silver filed the PFS on the Cordero project in Chihuahua. Vizsla Silver reported drilling results at Panuco, in Sinaloa. Avino Silver updated the mineral resource estimate for all deposits at its Avino property in Durango. Impact Silver released drilling results from the Aurora 2 zone at its Capire project in Guerrero. ON DEALS AND CORPORATE ISSUES, Silver Spruce Resources and Colibri Resource earned 50% ownership in the Diamante property in Sonora. Magna Gold received notices on claims totaling $19.7 M. ON SOCIAL RESPONSIBILITY, no relevant news.
ON MEXICO ISSUES
The Mexican president, Andrés M. López Obrador announced on one of its daily propaganda conferences: “I am to sign the decree to forward the lithium concession, all the reserves, to the Energy Secretariat”. In April 2022 the government declared lithium as a public utility mineral, and its exploitation to be only possible under the public enterprise Litio para México.
Margarita Vélez Rocha, the Sonora Economy Secretary, recognized the importance of the mining sector in the State, pointing that it directly employs more than 26 thousand workers and more than 120 thousand indirectly, with 39 municipalities having mining activities and 23 on which it is the main economic activity.
Southern Empire Resources Corp. announced that synchrotron radiation micro-X-ray fluorescence mineralogical studies of drill core samples from its Pedro project in Durango reveal mineralogical similarities to deposits of the Carlin belt in Nevada. Gold mineralization at Centauro and Pedro projects, both in Durango, is associated to hematite-stained, weak to moderately silicified brecciated conglomerate of the Eocene to Oligocene Ahuichila Formation. Historic drilling results include intervals like 5.60 m @ 0.59 gpt Au; 19.82 m @ 0.31 gpt Au; 15.23 m @ 0.58 gpt Au; 50 m @ 0.28 gpt Au; 88.10 m @ 0.24 gpt Au; 112.40 m @ 0.12 gpt Au, with anomalous Ag, As, Sb Tl and Hg.
Gold Resource Corp. issued 2023 guidance and suspension of dividends. For 2023 the company expects to produce 17 to 19 K Oz Au, 0.9 to 1.0 M Oz Ag (or 30 to 32 K Oz AuEq) at cash cost $1,000 to $1,050 per AuEq Oz and an AISC of $1,250 to $1,350 per AuEq Oz (Consolidated: $1,650 to $1,750 per AuEq Oz). “the lower grade profile is expected to continue through 2023 and is projected to negatively impact operating cash flows and total cash costs per gold equivalent ounce”, and accordingly “will suspend the quarterly dividend until such time that it may become practicable to reinstate” (Don David, Oaxaca).
Capstone Copper Corp. reported financial results for Q4 2022 and year 2022, including figures from its Mexican operations. At Cozamin, in Zacatecas, 3,430 tpd were milled during the quarter to produce 5.8 K tonnes of copper, totaling 24.5 K tonnes Cu on the year at cash cost $1.40 per Lb Cu (which is the lowest cost for Capstone operations). Cash and cash equivalents stood at $170.3 M by the end of the period.
Reyna Silver Corp. announced the closing of the first tranche of its bought deal private placement for gross proceeds of C$5 M (Guigui and Batopilas, Chihuahua).
Mag Silver Corp. completed the previously announced bought deal private placement for aggregate gross proceeds of C$23 M (Juanicipio (44%), Zacatecas).
Orogen Royalties Inc. authorized the granting of 156 K restricted share units, 156 K deferred share units and 238 K stock options to independent board members (Royalties on Ermitaño, Sonora).
ON RESOURCES AND DEVELOPMENT
Discovery Silver Corp. filed the pre-feasibility study (PFS) on its Cordero property in Chihuahua.
Vizsla Silver Corp. reported results from 19 holes on the Copala structure of the Panuco project in Sinaloa. The results represent step-out and infill drilling on the Copala structure that has now been traced for 1,110 m of strike and 400 m downdip. Highlighted true width intervals comprise 2.50 m @ 1,673 gpt Ag, 5.39 gpt Au; 3.35 m @ 428 gpt Ag, 3.64 gpt Au; 2.40 m @ 288 gpt Ag, 1.73 gpt Au; 13.70 m @ 270 gpt Ag, 1.48 gpt Au; 6.00 m @ 648 gpt Ag, 4.29 gpt Au; 3.00 m @ 247 gpt Ag, 2.17 gpt Au; 2.90 m @ 1,010 gpt Ag, 5.91 gpt Au; 6.20 m @ 242 gpt Ag, 1.15 gpt Au; 4.61 m @ 453 gpt Ag, 9.16 gpt Au; 6.00 m @ 176 gpt Ag, 1.12 gpt Au.
Avino Silver & Gold Mines Ltd. completed an updated mineral resource estimate for the Avino ET, San Gonzalo, La Potosina, Guadalupe and Oxide Tailing deposits at its Avino property in Durango. Measured and indicated resources comprise 34.7 M tonnes @ 63 gpt Ag, 0.54 gpt Au, 0.39% Cu (or 144 gpt AgEq) containing 70.0 M Oz Ag, 596.6 K Oz Au, 301.4 M Lb Cu. Inferred resources stand at 19.3 M tonnes @ 46 gpt Ag, 0.34 gpt Au, 0.37% Cu (112 gpt AgEq) containing 28.4 M Oz Ag, 212.6 K Oz Au, 158.5 M Lb Cu. Another nearby property, La Preciosa, is also held by Avino and contains 98.6 M Oz Ag, 189.2 K Oz Au in indicated resources and 21.3 M Oz Ag, 35.5 K Oz Au in inferred resources.
Impact Silver Corp. announced drill results from the Aurora 2 zone, 1.3 km northeast of the Capire processing plant (in Guerrero), and 16 km south of the company’s active mining operations at the Royal Mines of Zacualpan in Estado de Mexico. The mineralization at the site consists of volcanogenic massive sulfides (VMS) lenses, extending the zone to the west. Highlighted true width intervals comprise 2.39 m @ 106 gpt Ag, 0.42 gpt Au, 0.3% Pb, 0.8% Zn; 3.73 m @ 66 gpt Ag, 0.40 gpt Au, 0.2% Pb, 0.5% Zn; 7.48 m @ 128 gpt Ag, 0.42 gpt Au, 0.8% Pb, 1.8% Zn; 1.01 m @ 138 gpt Ag, 0.49 gpt Ag, 0.5% Pb, 1.1% Zn; 7.95 m @ 63 gpt Ag, 0.52 gpt Au, 0.9% Pb, 2.8% Zn; 2.11 m @ 51 gpt Ag, 0.15 gpt Au, 0.5% Pb, 1.9% Zn; 2.38 m @ 142 gpt Ag, 0.37 gpt Au, 0.2% Pb, 0.5% Zn; 3.28 m @ 34 gpt Ag, 0.24 gpt Au, 0.4% Pb, 1.2% Zn.
ON DEALS AND CORPORATE ISSUES
Silver Spruce Resources Inc. and Colibri Resource Corp. reported the companies have earned 50% ownership interest in the Diamante project in Sonora, while Vendor Bimsa Minera SA de CV retains 50% ownership in the Property. “The 1,057-hectare Diamante property is located adjacent to the Jackie property, a joint venture with Colibri, which covers 1,113 hectares, providing the company with a total of 2,170 hectares of exploration ground. Diamante hosts a number of historical showings and combined with mineralization on the Mezquite and Jackie properties exhibit the geological characteristics of epithermal low to intermediate sulfidation Ag-Au (Pb-Zn)”. With completion of the initial earn-in, Silver Spruce and Colibri together will become equal joint venture partners with the Vendor in BIMCOL Minera, with a six months exclusive period to purchase the remaining 50% by paying either US$2.1 M or US$1.45 M and 2% NSR.
Magna Gold Corp. informed the receipt of notices of claims from three of its creditors, Cominivi Servicios S.A. de C.V., Covoro Mining Solutions Mexicana S. de R. L. de C.V. and Sidney W. French S.A. de C.V. for US$6.49 M. Also, a notice of commencement of arbitration with Peal México, S.A. de C.V. was received on a claim of US$13.2 M (San Francisco, Sonora).
ON SOCIAL RESPONSIBILITY
No Relevant News.
On the image below: Quartz specularite veining cut by late quartz veinlet on a copper project in the Sonoran Desert. Picture by Abraham López.
During the 6th week of the year (February 6th to February 12th, 2023), at least 14 press releases were announced by companies working in Mexico, with five disclosing deals and corporate issues, three reporting resources and developments of their properties, three announcing financing issues, two informing on exploration results, and one commenting on Mexican issues. ON MEXICO ISSUES, Golden Minerals Corporation was the only mining company reporting drilling results on the second week of February, 2023. ON EXPLORATION, In Sonora, Prismo filed a drilling permit application for its Pavito project. In Chihuahua, Golden Minerals reported results from the final 10 holes of the third drill program conducted at its Yoquivo project. ON MINING, no relevant news. ON FINANCING, Barksdale announced that 8,050,287 common share purchase warrants were exercised prior to their expiration (San Javier project, Sonora). GoGold closed its previously announced bought deal offering for gross proceed of CAD $65M (Los Ricos North and South projects, Jalisco). MAG Silver completed its previously announced bought deal public offering for gross proceeds of USD $42,558,250 (Juanicipio project, Zacatecas). ON RESOURCES AND DEVELOPMENT, Sonoro Gold announced an updated Mineral Resource Estimate for its Cerro Caliche project in Sonora. Prime Mining announced the details of its 2023 work program objectives and strategy at its Los Reyes project in Sinaloa and will provide a 2022 progress report in February, 2023. Torex provided an inaugural quarterly update on its Media Luna project in Guerrero. ON DEALS AND CORPORATE ISSUES, Colibri and its partner Silver Spruce declared that have earned 50% ownership interest in the Diamante property in Sonora. Discovery Silver announced that its shares will be listed and commence trading on the Toronto Stock Exchange (Cordero project, Chihuahua). Consolidated Zinc entered into a binding conditional share sale agreement with Impact to sell its Plomosas project in Chihuahua. Vizsla, as part of its incentive compensation plan, granted stock options to directors, officers, employees and consultants of the company (Panuco project, Sinaloa). Heliostar announced that their shares remain in a trading halt due to the acquisition of the Ana Paula project in Guerrero from Argonaut Gold. ON SOCIAL RESPONSIBILITY, no relevant news.
ON MEXICO ISSUE
Golden Minerals was the only mining company reporting drilling results on the second week of February, 2023. Details are shown in the table below:
Prismo Metals Inc., filed a drilling permit application for its Pavito project in Sonora. The company anticipates the drilling permit will be approved in early March, 2023. Prismo plans to conduct an initial 2,500m drill program in the first half of 2023.
Golden Minerals Company reported results from the final 10 holes of the third drill program conducted at its Yoquivo project. Drilling highlights (widths reported are true widths) include hole YQ-22-028 with 3.81 g/t Au and 1,585 g/t Ag over 0.76m on the New Vein, plus 1.16 g/t Au and 105 g/t Ag over 0.80m on the Pertenencia Hangingwall Vein, plus 4.25 g/t Au and 449 g/t Ag over 1.16m on the Camila Hangingwall Vein, plus 1.45 g/t Au and 510 g/t Ag over 4.80m on the Camila Vein; hole YQ-22-031 with 3.86 g/t Au and 668 g/t Ag over 2.29m on the Pertenencia Vein; and hole YQ-22-034 with 1.3 g/t Au and 545 g/t Ag on the San Francisco Hangingwall Vein.
No relevant news.
Barksdale Resources Corp., announced that 8,050,287 common share purchase warrants, with an exercise price of $0.55 were exercised prior to their January 31, 2023 expiry. “The warrant exercises generated gross proceeds of approximately $4.4M, with approximately $3.8M coming from warrant exercises in January 2023. As of February 3, the Company’s unaudited cash position is approximately $6.6M with issued capital of 80,239,886 common shares. (San Javier project, Sonora).
GoGold Resources Inc., closed its previously announced bought deal offering of 28.9M common shares at a price of CAD $2.25 for gross proceed of approximately CAD $65M. Net proceeds will be used to advance the Los Ricos North and South projects in Jalisco. A syndicate of underwriters hold an option to purchase up to an additional 4,335,000 common shares at a price of CAD $2.25 per common share, exercisable in whole or in part, on or before March 10, 2023.
MAG Silver Corp., completed its previously announced bought deal public offering of 2,905,000 common shares, including 170,000 common shares issued upon the partial exercise of the over-allotment option, at a price of USD $14.65 per common share for gross proceeds of USD $42,558,250. Net proceeds will be used to fund exploration on the Juanicipio and MAG´s other projects, certain sustaining capital requirements at the Juanicipio project, and for working capital and general corporate purposes.
ON RESOURCES AND DEVELOPMENT
Sonoro Gold Corp., announced an updated Mineral Resource Estimate (MRE) for its Cerro Caliche project in Sonora, in accordance with the requirements of NI 43-101. The MRE, with an effective date of January 26, 2023 is based on 59,500m of drilled data including 544 drill holes, 17 trenches and assays for 57,500m of the drilled data. The pit constrained MRE include an indicated resource of 19.9M tonnes with grades of 0.44 g/t Au and 3 g/t Ag (0.46 g/t AuEq) for a total of 280K Oz Au and 2.23M Oz Ag (290K Oz AuEq) contained, and inferred resources of 10.55M tonnes with grades of 0.42 g/t Au and 4 g/t Ag (0.44 g/t AuEq) for a total of 140K Oz Au and 1.34M Oz Ag (150K Oz AuEq).
Prime Mining Corp., announced the details of its 2023 work program objectives and strategy at its Los Reyes project in Sinaloa and will provide a 2022 progress report in February, 2023. The company has completed 110,000m of drilling in 2021 – 2022 to contribute to an updated NI 43-101 Mineral Resource Estimate (MRE) which is expected to be released in Q2, 2023. For 2023, Prime has budgeted initial 35,000m in step-out drilling along the three known deposits (Guadalupe, Z-T, and Central), as well as in generative exploration drilling at key targets in the Los Reyes mining district. Additionally, Prime plans to continue metallurgical test work and metallurgical domain classification of the deposits; to complete preliminary geotechnical analysis of the resource areas; and further mining assessment to advance the property to a potential future development. The company also will continue with the environmental base line work as well as the work dialogue with the community with strong emphasis on water programs and education. All these programs are fully funded for 2023 with the completion of an over-subscribed $21M private placement on December 22, 2023.
Torex Gold Resources Inc., provided an inaugural quarterly update on its Media Luna project in Guerrero. Development of Media Luna is well underway with the project tracking to schedule and to budget. Capital expenditures related to the development of Media Luna are unchanged at USD $874.5M. As at year-end, Torex had commitments in place for USD $229.7M of project expenditures, including USD $124.7M of expenditures incurred. Torex expects to incur USD $390M to USD $440M of capital expenditures at Media Luna in 2023, which is forecasted to be the peak year of investment. All critical path engineering is on track, focused on finalization of key process equipment sizing and specifications as well as continued detailing of the new flotation plant. The Guajes Tunnel and South Portals advanced steady. Breakthrough of the Guajes Tunnel on the south side of the Balsas River remains on track for Q1 2024. The tunnel has successfully crossed under the Balsas River with no issues related to ground conditions or water. Additionally, multiple surface constructions have advanced steady. The company anticipates first production in late 2024.
ON DEALS AND CORPORATE ISSUES
Colibri Resource Corporation and its partner Silver Spruce Resources declared that have earned 50% ownership interest in the Diamante property in Sonora. The vendor, Bimsa Minera S.A. de C.V. , retains the remainder 50% ownership interest in the property.
Discovery Silver Corp., announced that its shares will be listed and commence trading on the Toronto Stock Exchange (TSX) under the symbol “DSV”, effective as February 3, 2023 (Cordero project, Chihuahua).
Consolidated Zinc Limited entered into a binding conditional share sale agreement with Impact Silver Corp., to sell its 100% legal and beneficial interest in Minera Latin American Zinc S.A.P.I. de C.V., a subsidiary of the company that owns the Plomosas project in Chihuahua for USD $6M. The sale agreement for the proposed transaction consist of USD $3M in cash and USD $3M in Impact Silver shares, and the payment of a 12% net profit interest royalty.
Vizsla Silver Corp., as part of its incentive compensation plan, granted 2,130,000 stock options at an exercise price of $1.60 and 1,133,572 restricted share units to directors, officers, employees and consultants of the company (Panuco project, Sinaloa).
Heliostar Metals Inc., announced that their shares remain in a trading halt due to the acquisition of the Ana Paula project in Guerrero from Argonaut Gold, since this kind of transactions require a number of key documents for the security exchange.
During this period only Golden Minerals Company released drilling results from its Yoquivo project in Mexico. The property seems to be the host for low sulfidation epithermal mineralization in structures up to several meters in width, hosted in a window of andesitic rocks of the Lower Volcanic Group, underlying felsic tuffs of the Upper Volcanic Group in the Sierra Madre of Chihuahua. These are the last results from the third drilling program that commenced on May 2022, comprising 34 holes totaling 9,268 meters. The primary focus of the program was to produce a mineral resource estimate compliant NI-43-101 technical report, estimated to be completed in Q1 2023.
During the 5th week of the year (January 30th to February 5th, 2023), 15 companies working in Mexico released news on their properties. One company informed on metallurgical results from its project, one company posted consolidated 2022 production and three companies provided updates on 2022 work on their properties and plans for 2023. One company began trading on the OTCQB in USA and two companies are to undertake private placements. Three companies informed on drilling results and work on their advanced properties, one other on the signing of an option agreement on the acquisition of a property and one more provided its bi-weekly status report. ON MEXICO ISSUES, mining companies are among the best compliers on environmental, social and governance strategies. ON EXPLORATION, in Chihuahua, Radius Gold informed on metallurgical results by associate Fresnillo PLC on its Plata Verde property. ON MINING, Altaley Mining provided an update on its 2023 plans for its Tahuehueto (Durango) and Campo Morado (Guerrero) properties. Minera Alamos informed on the late 2022 commercial production and some operational hurdles at its Santana project in Sonora. SilverCrest Metals released Q4 2022 production results and informed on relevant mining issues at Las Chispas, in Sonora. Capstone Copper presented 2023 production guidance for its Cozamin mine in Zacatecas. ON FINANCING, Excellon Resources commenced trading on the OTCQB in USA. GRSilver Mining and Reyna Silver are undertaking private placements for $3 M and C$4 M respectively. ON RESOURCES AND DEVELOPMENT, Orla Mining provided an update on 2022 exploration activities and plans for 2023 at its Camino Rojo project in Zacatecas, releasing impressive drill results from the sulfide zone. Alamos Gold released drilling results from Puerto del Aire deposit in the Mulatos project in Sonora, with the second highest gold intercept in Mexico on the last nine months. Oroco Resource announced drilling results from the South zone of the Santo Tomás project in Sinaloa. ON DEALS AND CORPORATE ISSUES, Aloro Mining signed an option agreement with Cuesta del Cobre to acquire the Quitovac project in Sonora. Gatos Silver complied with the by-weekly status report. ON SOCIAL RESPONSIBILITY, no relevant news.
ON MEXICO ISSUES
According to Miranda Partners, mining companies are among the best positioned on environmental, social and governance strategies
Radius Gold Inc. informed on metallurgical results from its Plata Verde project in Chihuahua. Fresnillo PLC has an exclusivity agreement on the project since mid-2022 to negotiate an option agreement to earn a 70% interest in the project. Approximately 100 kg of bulk samples were collected from Mina Mojonera and Mina Real underground workings for metallurgical testing by cyanide leaching and flotation. The samples were classified as “soft” for ball mining, cyanide leach tests reported average 93% Ag recovery, “Flotation studies generate Pb/Cu concentrates with a high grade of silver and good values of lead and copper with recovery of around 85% for silver, 52% for lead and 64% for copper”, the combination of flotation + tailings cyanidation averaged 97% Ag recovery. “Galena is the main sulfide, which registered around 0.11% by weight, chalcocite 0.12%, and sphalerite, pyrite, chalcopyrite and arsenopyrite, which totaled around 0.06%, were detected to a lesser extent. As silver species, stromeyerite, argentite and a low proportion of AgHg were detected. Non-sulfur gangue represented 99.6% by weight mainly as baryte, calcite, albite, and quartz”.
Altaley Mining Corp. provided an update on its operations plans for 2023. At Tahuehueto, in Durango, a new consulting construction manager was appointed and recruiting of a new site general manager is in process. The construction of the initial 500 tpd operation is to be completed on 2Q23 and expansion to 1,000 tpd nameplate capacity operation on 4Q23. “Currently the mine is in pre-production, averaging 300 tpd”. At 1,000 tpd capacity the mine is projected to produce 42.8 K Oz AuEq per year, generating a yearly EBITDA of US$28.1 M. For the Campo Morado mine in Guerrero, plans have “strategically shifted focus” towards mining of higher-grade copper orebodies. Campo Morado EBITDA for 2023 is projected to be US$15.9 M. The company expects to progress on implementing recommendations made by Ausenco to improve plant performance at Campo Morado. The metals production for 2023 from Campo Morado is expected to be 15,433 tonnes Zn, 2,967 tonnes Cu, 2,142 tonnes Pb, 184 Kg Au (5,916 Oz Au), 25.8 tonnes Ag (829.8 K Oz Ag) while guidance at Tahuehueto is 1,903 tonnes Zn, 545 tonnes Cu, 1454 tonnes Pb, 289 kg Au (9,291 Oz Au), 6,258 kg Ag (201.2 K Oz Ag).
Minera Alamos Inc. informed on the completion in the second half of 2022 of the initial thresholds for commercial production at the Santana project in Sonora, including gold recovery rates from the heap leach pad and monthly mining rates. Final approvals for resubmitted applications are pending for the next phase of pad expansion and full access to the Nicho deposit. Due to water scarcity the company is giving priority at this time to pre-stripping activities, and competing work and plans to proceed with the expansion when the permits are received. The mine was built for US$10 M, most of which has been paid back by the operational performance, which has demonstrated the ability to operate at 10,000 tpd of ore and waste moving. Overall gold recoveries are above 70% for material under 45-60 days leach with residual leach ongoing.
SilverCrest Metals Inc. reported Q4 2022 operational results and an update on activities at its Las Chispas mine in Sonora, where commercial production was announced on November 1, 2022. During the quarter 104.3 K tonnes @ 3.67 gpt Au, 382 gpt Ag were processed, recovering 96.9% Au, 93.3% Ag to produce 11,940 Oz Au, 1.20 M Oz Ag (2.23 M Oz AgEq). Underground mining averaged 700 tonnes per day, with resue mining planned for some stopes currently being replaced either by cut and fill or long hole mining. Ore stockpiles stood at 261.6 K tonnes at the end of the period. The company expects to release an updated technical report on Q2 2023. At the end of the quarter cash and cash equivalents represented $50.8 M and total debt $50 M.
Capstone Copper Corp. announced consolidated copper production for 2022, without disclosing production by property. The 2023 guidance aims for production at the Cozamin mine in Zacatecas to be in the 23 to 25 K tonnes Cu, with a cash cost of $1.50 – $1.65 per Lb Cu, the lowest for all its operations in Arizona, Mexico and Chile.
Excellon Resources Inc. commenced trading on the OTCQB Venture Market in USA, while continuing to trade also at the Toronto Stock Exchange (La Negra, Hidalgo).
GRSilver Mining Ltd. proposes to undertake a non-brokered private placement to raise total gross proceeds of up to $3 M (Plomosas, Sinaloa).
Reyna Silver Corp. entered into an agreement with Eight Capital as lead underwriter and on behalf of a syndicate of underwriters in connection with a bought deal private placement financing for aggregate gross proceeds of C$4 M (Guigui and Batopilas, Chihuahua).
ON RESOURCES AND DEVELOPMENT
Orla Mining Ltd. provided an update on 2022 exploration activities at Camino Rojo in Zacatecas, and an overview on 2023 exploration plans. Drilling the Camino Rojo Sulfides returned good gold intercepts, of which the highlighted ones comprise 64.0 m @ 4.66 gpt Au; 79.0 m @ 2.76 gpt Au; 70.0 m @ 2.81 gpt Au; 87.0 m @ 1.92 gpt Au; 73.5 m @ 1.74 gpt Au; 40.5 m @ 3.83 gpt Au; 16.0 m @ 6.94 gpt Au; 37.0 m @ 3.78 gpt Au; 49.5 m @ 2.71 gpt Au. Drilling below the current mineral resource has identified feeder-like structures, with intersects of up to 22.9 m @ 4.02 gpt Au, 1.5% Zn. Drilling of regional targets has returned up to 7.10 m @ 0.54 gpt Au and 2.35 m @ 1.35 gpt Au at the Guanamero target area. “Further drilling is planned in 2023 to test for zones of oxidized mineralization that could potentially allow for local expansion of the oxide pit”. For the Camino Rojo sulfides zone, a 34,000 m of infill drilling in 57 holes is planned, with 20% to test the deep potential, and 6,500 m more on extensions to the Oxide zone to expand resources. On regional exploration, 15,000 to 20,000 of RC drilling and 2,000 to 5,000 m of core drilling are planned to test multiple targets.
Alamos Gold Inc. reported results from surface exploration drilling at Puerto del Aire (PDA), an underground deposit within the Mulatos project in Sonora. Highlighted true width intervals comprise 25.95 m @ 33.40 gpt Au (an impressive 866.7 gpt*m); 3.25 m @ 67.58 gpt Au; 6.20 m @ 18.33 gpt Au; 1.50 m @ 75.50 gpt Au; 2.35 m @ 36.50 gpt Au; 1.40 m @ 60.20 gpt Au; 6.75 m @ 11.16 gpt Au; 9.00 m @ 6.73 gpt Au. The results extend high-grade Au mineralization outside the resource zone that holds 556 K Oz Au in reserves and resources grading close to 5 gpt Au. Since the last mineral resource estimate was released on the PDA deposit in 2021, 92 drill holes totalling 27,117 m have been completed. The $17 M exploration budget at Mulatos includes $4 M for drilling focused on expanding resources at PDA.
Oroco Resource Corp. announced drilling results from the South zone at its Santo Tomás project in Sinaloa. The 2 km long zone is subdivided in three segments: northern, middle and southern, with the current drilling reported from the middle and southern segments. Highlighted core length results, that are reported to be within 10% of true width, comprise 127.0 m @ 0.37% Cu, 0.049 gpt Au; 146.6 m @ 0.37% Cu, 0.073 gpt Au; 82.0 m @ 0.37% Cu, 0.032 gpt Au; 146.0 m @ 0.24% Cu, 0.014 gpt Au; 66.0 m @ 0.26% Cu, 0.009 gpt Au, 180 ppm Mo; 47.0 m @ 0.35% Cu, 0.018 gpt Au, 80 ppm Mo; 179.2 m @ 0.36% Cu, 0.022 gpt Au, 200 ppm Mo; 349.1 m @ 0.36% Cu, 0.027 gpt Au, 60 ppm Mo; 187.9 m @ 0.51% Cu, 0.038 gpt Au, 120 ppm Mo; 234.3 m @ 0.34% Cu, 0.017 gpt Au, 120 ppm Mo. Drilling on the southern zone segment has intersected western dipping dikes and mineralization, overprinted by hydrothermal breccia bodies and a wide array of stockwork vein and fracture mineralization.
ON DEALS AND CORPORATE ISSUES
Aloro Mining Corp. signed an option agreement with Cuesta del Cobre S. de R.L. de C.V. to acquire the Quitovac project in Sonora. The terms include cash and shares amounts of $35 K, 200 K shares within 30 days of approval; $45 K and 200 K shares on year one; $55 K and 200 K shares on year two; $65 K and 200 K shares on year three; $75 K and 300 K shares on year four; $100 K and 400 K shares on year five; $200 K and 500 K shares on year six. The project covers 2,644 hectares with 14 claims, with the orogenic gold mineralization having been tested with 12,450 m of drilling in 100 holes by four companies between 1987 and 2012.
Gatos Silver Inc. provided the bi-weekly status report in accordance with National Policy 12-203-Management Cease Trade Orders. Ernst & Young LLP was appointed on November 14, 2022 as the company’s independent registered public accounting firm. “The Company expects all delayed filings, including the audit of the financial statements required to be included in its annual report on Form 10-K for the year ended December 31, 2021, and the reviews of its quarterly reports on Forms 10-Q for the quarters ended March 31, 2022, June 30, 2022 and September 30, 2022, to be completed before the end of the first quarter of 2023” (Cerro Los Gatos, Chihuahua).
ON SOCIAL RESPONSIBILITY
No Relevant News.
On the image below: Quartz specularite vein on a copper project in the Sonoran Desert. Picture by Abraham López.
During the 4th week of the year (January 23rd to January 29th, 2023), at least 21 press releases were announced by companies working in Mexico and a couple of news published by the media. One company informed on project exploration work, four companies released Q4 2022 production reports, one company elaborated on its 2023 plans, one company announced a financing round, one other elaborated on its share consolidation process and one more cancelled a previously announced financing round. Seven companies reported on work at their advanced or operating properties, three organizations disclosed personnel appointments and one more on a deal about the sale of a tailings property. ON MEXICO ISSUES, Fortuna Silver provided an update on its San Jose mine environmental impact authorization. ON EXPLORATION, In Sonora, Tocvan and its JV partner Colibri begun the preparation for an initial bulk sample at its Pilar property. ON MINING, Mag Silver, Fresnillo PLC, Santacruz Mining and Guanajuato Silver reported Q4 and full year 2022 production results. Avino provided its outlook for 2023. ON FINANCING, Heliostar announced a non-brokered private placement of up to CAD $16.28M (Ana Paula project, Guerrero), Fabled Silver is to consolidate its shares on a 5 to 1 ratio, and Tarachi Gold cancelled its previously announced financing round. ON RESOURCES AND DEVELOPMENT, Silver Tiger released results from drilling at its El Tigre project in Sonora. GoGold presented drilling results from the Eagle and Main Deposits within its Los Ricos South project in Jalisco. Bendito Resources is to prepare a technical report on its Oposura project in Sonora. Gatos Silver updated on extension and resource definition drilling at its Cerro Los Gatos property in Chihuahua. Discovery Silver filed a PFS report on its Cordero project, in Chihuahua. Vizsla Silver updated the mineral resource estimate for its Panuco project in Sinaloa, with a significant increase. Endeavour Silver filed resource estimate updates on its Guanaceví and Bolañitos projects, in Durango and Guanajuato respectively. ON DEALS AND CORPORATE ISSUES, Discovery Silver announced the appointment of its new CEO and the promotion of Román Solis to VP Mexico (Congratulations Román!). Altaley announced the appointment of its new CFO (Tahuehueto project, Durango). Tarachi Gold is selling its Magistral project in Durango to Compañía Minera de Atocha. Vizsla Silver appointed Charles Funk as Lead Technical Advisor, and Michael Pettingeli was promoted to Senior VP (Panuco, Sinaloa). ON SOCIAL RESPONSIBILITY, no relevant news.
ON MEXICO ISSUES
Fortuna Silver Mines Inc., provided an update on its San Jose Mine´s environmental impact authorization. It informed that the Mexican Federal Administrative Court has granted a provisional injunction to Compañía Minera Cuzcatlán, Fortuna´s Mexican subsidiary, which allows the San Jose Mine to continue to operate under the terms of the 12-year environmental impact authorization (EIA). It is expected that the Court will decide on the grant of a permanent injunction, within the coming weeks, which would continue in effect until the Court has ruled on the revocation of the EIA.
Tocvan Ventures Corp., and its JV partner Colibri Resource Corp., begun the preparation for an initial bulk sample at its Pilar property in Sonora. Over 1,000 tonnes of oxide-gold material will be extracted from select areas exposed at surface. This bulk sample will be prepared in February for processing by heap-leach method at a private mining operation less than 25km to the west of Pilar. “Data generated from the bulk sample will provide an understanding of the expected head-grades and recovery percentages of gold and will help optimize future onsite production facilities”.
Mag Silver Corp., reported Q4 and full year 2022 production results from its Juanicipio project in Zacatecas (56% / 44% Fresnillo PLC and Mag Silver Corp. respectively). The company processed 165,786 tonnes from underground and initial stopes at an average grade of 415 g/t Ag to produce 1.86M Oz Ag and 5,380 Oz Au, and 646,148 tonnes in the full year 2022 at an average grade of 520 g/t Ag to produce 9.25M Oz Ag and 22,252 Oz Au. “The associated lead and zinc production will be reported with MAG Silver’s year end filings”.
Avino Silver & Gold Mines Ltd., provided its outlook for 2023, and presented a summary of the major milestone achieved in 2022. Avino plans to process 700K-750K tonnes in the full year from both Avino Mine and La Preciosa stockpiles to produce between 2.8M and 3.2M Oz AgEq. The company estimated a total capital budget of USD $9-$11.5M and a Corporate budget of USD $0.5M (USD $9.5-$12M consolidated), of which USD $5-$6M will be Grow Capital, USD $1-$1.5M for Exploration & Evaluation, and USD $3-$4M for Sustaining Capital & Mine Development. The company also reported that “its internal estimate for production was between 2.2-2.4M Oz AgEq and capital expenditures for 2022 were expected to total between USD$7M and USD $9M, excluding the acquisition of La Preciosa. In addition, it included a drill program targeting areas and veins on the property, including the recommended drilling on the Oxide Tailings Project, the construction of the dry-stack tailings facility, and metallurgical projects to help improve recovery rates”.
Fresnillo PLC. released Q4 2022 production results. During the period 12.5 M Oz Ag, 167,969 Oz Au, 12,756 tonnes Pb, 23,060 tonnes Zn were produced, taking the yearly total to 53.7 M Oz Ag (including Silverstream), 635,926 Oz Au, 52,950 tonnes Pb, 99,153 tonnes Zn. At the Fresnillo mine in Zacatecas, 624.1 K tonnes were processed averaging 197 gpt Ag, 0.58 gpt Au, 1.0% Pb, 2.4% Zn to produce 3.6 M Oz Ag, 8,314 Oz Au, 5,609 tonnes Pb, 11,097 tonnes Zn during the quarter. At Saucito, in Zacatecas, 508.4 K tonnes were processed @ 208 gpt Ag, 1.39 gpt Au, 0.9% Pb, 1.6% Zn, to produce 3.03 M Oz Ag, 18,076 Oz Au, 3,859 tonnes Pb, 5,868 tonnes Zn. At the Pyrites Plant in Zacatecas, 32.2 K tonnes were processed @ 145 gpt Ag, 1.19 gpt Au, to produce 111 K Oz Ag, 374 Oz Au. At Cienega, in Durango, 256.9 K tonnes were processed @ 1.20 gpt Au, 139 gpt Ag, 0.56% Pb, 0.94 % Zn, to produce 9,122 Oz Au, 0.98 M Oz Ag, 930 tonnes Pb, 1,372 tonnes Zn. At San Julián in Chihuahua, production during the quarter was 11,907 Oz Au, 3.11 M Oz Ag. At Herradura in Sonora 27.44 M tonnes were hauled, 7.08 M tonnes processed @ 0.71 gpt Au, 1.35 gpt Ag, to produce 103,826 Oz Au, 191 K Oz Ag. At Noche Buena in Sonora 7.3 M tonnes were hauled, 1.23 M tonnes processed averaging 0.51 gpt Au, 0.21 gpt Ag, to produce 13,331 Oz Au, 3 K Oz Ag. Attributable production (56% Fresnillo / 44% Mag Silver) from Juanicipio in Zacatecas was 1.04 M Oz Ag, 3,020 Oz Au during the quarter. The company aims to have a gold production ranging between 590 K and 640 K Oz Au in 2023.
Santacruz Silver Mining Ltd. reported Q4 and full year production, including figures from its Mexican operations. At Zimapan, in Hidalgo, 215 K tonnes averaging 71 gpt Ag, 2.19% Zn, 0.63% Pb, 0.40% Cu were processed, recovering 61.5% Ag, to produce 301.2 K Oz Ag, 3,098 tonnes Zn, 1,036 tonnes Pb, 569 tonnes Cu during the quarter. For the year, 822.1 K tonnes were processed @ 73 gpt Ag, 2.13% Zn, 0.65% Pb, 0.37% Cu, recovering 67.3% Ag to produce 1.29 M Oz Ag, 12,577 tonnes Zn, 4,450 tonnes Pb, 2,165 tonnes Cu. At Zimapan “Q4 has seen the purchase and installation of a replacement secondary crusher, commissioning of a zinc flotation column, and installation of additional concentrate filtration capacity. A Metallurgical testing program is underway to address new mineralized zones being mined, and to maximize recoveries”.
Guanajuato Silver Company Ltd. announced consolidated production results for the fourth quarter 2022. The production, not disclosed by operations, comes from the El Cubo mines complex, Valenciana mines complex and San Ignacio mine, in Guanajuato, and from the Topia mine in Durango. During the period 131.5 K tonnes were mined, 131.3 K tonnes milled, recovering 86.8% Ag, 84.2% Au, to produce 401.2 K Oz Ag, 3,907 Oz Au, 811.5 K Lb Pb, 1.26 M Lb Zn (or 836.4 K Oz AgEq). “Consolidated silver equivalent production in Q4 was 19% higher than the previous quarter. This increase reflects the continuing ramp-up of operations at all of GSilver’s mining assets. Total production for 2022 was 2.15 million AgEq”.
Heliostar Metals Limited announced a non-brokered private placement of up to 74M units at a price of CAD $0.22 per unit for gross proceeds of up to approximately CAD $16.28M or USD $12.5M. Net proceeds will be used to advance the Ana Paula development stage in Guerrero, as well as for working capital and general corporate purposes.
Fabled Silver Gold Corp.,announced that it has received Toronto Stock Exchange Venture (TSXV) approval for the 5 to 1 consolidation of the common shares of the company. There will be no name change in conjunction with the consolidation. The post-consolidation common shares will continue to trade on the TSXV under the symbol “FCO”. (Santa Maria project, Chihuahua).
Tarachi Gold Corp. cancelled its previously announced private placement (Tarachi, Sonora).
ON RESOURCES AND DEVELOPMENT
Silver Tiger Metals Inc., released results from its ongoing drilling program being conducted at its El Tigre project, Sonora. Drilling highlights include hole ET-22-432 with 0.1 g/t Au, 39 g/t Ag, 0.01% Cu, 0.02% Pb, and 0.02% Zn (48.5 g/t AgEq) over 9.4m on the HW Gold Zone, plus 0.16 g/t Au, 399 g/t Ag, 0.43% Cu, 2.8% Pb, and 5.2% Zn (691 g/t AgEq) over 10.4m on the Sooy Vein, including 0.24 g/t Au, 1,154 g/t Ag, 1.29% Cu, 9.8% Pb, and 17% Zn (2,085 g/t AgEq) over 2,1m, plus 0.13 g/t Au, 257 g/t Ag, 0.47% Cu, 1.2% Pb, and 2% Zn (407 g/t AgEq) over 34.8m on the Sulphide Zone, including 0.13 g/t Au, 957 g/t Ag, 1.69% Cu, 3.6% Pb, and 7% Zn (1,556 g/t AgEq) over 8.2m, including 0.17 g/t Au, 1,663 g/t Ag, 4.32% Cu, 6.3% Pb, and 11.5% Zn (2,622 g/t AgEq) over 2.1m;M hole ET-22-434 with 0.39 g/t Au, 97 g/t Ag, 0.01% Cu, 0.08% Pb, and 0.01% Zn (130 g/t AgEq) over 8.5m on the HW Zone, including 2.04 g/t Au, 336 g/t Ag, 0.02% Cu, 0.2% Pb, and 0.04% Zn (497 g/t AgEq) over 1.5m, plus 0.16 g/t Au, 172 g/t Ag, 0.36% Cu, 2.1% Pb, and 2.6% Zn (354 g/t AgEq) over 13m on the Sooy Vein, including 0.19 g/t Au, 326 g/t Ag, 0.84% Cu, 4.9% Pb, and 6% Zn (735 g/t AgEq) over 5.2m, including 0.24 g/t Au, 496 g/t Ag, 1.76% Cu, 7.2% Pb, and 8.6% Zn (1,139 g/t AgEq) over 2.1m, plus 0.11 g/t Au, 377 g/t Ag, 0.32% Cu, 0.1% Pb, and 0.1% Zn (422 g/t AgEq) over 6.6m on the Sulphide Zone, including 0.2 g/t Au, 1,116 g/t Ag, 0.89% Cu, 0.2% Pb, and 0.1% Zn (1,226 g/t AgEq) over 2m, including 0.25 g/t Au, 1,859 g/t Ag, 1.44% Cu, 0.3% Pb, and 0.2% Zn (2,030 g/t AgEq) over 1m, plus 0.22 g/t Au, 606 g/t Ag, 1.13% Cu, 4% Pb, and 7.4% Zn (1,073 g/t AgEq) over 19.9m, including 0.2 g/t Au, 914 g/t Ag, 1.68% Cu, 5.9% Pb, and 12.4% Zn (1,642 g/t AgEq) over 10.5m; and hole ET-22-438 with 0.16 g/t Au, 19 g/t Ag, 0.01% Pb, and 0.01% Zn (31 g/t AgEq) over 43.5m on the HW Gold Zone, including 2.26 g/t Au, 566 g/t Ag, 0.02% Cu, 0.02% Pb, and 0.,02% Zn (739 g/t AgEq) over 0.6m, plus 0.52 g/t Au, 300 g/tr Ag, 0.18% Cu, 0.7% Pb, and 0.3% Zn (385 g/t AgEq) over 3.2m on the Sooy Vein, including 1.51 g/t Au, 773 g/t Ag, 0.48% Cu, 2.1% Pb, and 0.8% Zn (1,007 g/t AgEq) over 0.9m, plus 0.27 g/t Au, 408 g/t Ag, 0.53% Cu, 0.9% Pb, and 0.8% Zn (527 g/t AgEq) over 19.5m on the Sulphide Zone, including 0.24 g/t Au, 879 g/t Ag, 0.76% Cu, 0.9% Pb, and 1.4% Zn (1,036 g/t AgEq) over 3.7m, including 0.62 g/t Au, 2,796 g/t Ag, 1.75% Cu, 1.8% Pb, and 4.2% Zn (3,193 g/t AgEq) over 0.5m, including 0.51 g/t Au, 564 g/t Ag, 0.9% Cu., 1.7% Pb, and 1.3% Zn (772 g/t AgEq) over 8m, including 1.47 g/t Au, 1,148 g/t Ag, 1.4% Cu, 1.5% Pb, and 0.7% Zn (1,452 g/t AgEq) over 0.7m.
GoGold Resources Inc., presented additional results from its ongoing drilling program at Eagle and Main Deposits within its Los Ricos South project in Jalisco. Drilling highlights include hole LRGAG-22-218, the best hole drilled to date in the Los Ricos District, with 7.8 g/t Au and 2,153 g/t Ag (36.51 g/t AuEq or 2,738 g/t AgEq) over 55m, including 16.07 g/t Au and 4,664 g/t Ag (78.26 g/t AuEq or 5,869 g/t AgEq) over 25m, including 26,74 g/t Au and 7,756 g/t Ag (130.15 g/t AuEq or 9,761 g/t AgEq) over 15m, including 55.87 g/t Au and 16,525 g/t Ag (276.19 g/t Au or 20,714 g/t AgEq) over 7m, including 121.97 g/t Au and 36,953 g/t Ag (614.67 g/t AuEq or 46,100 g/t AgEq) over 3m, including 145.25 g/t Au and 52,764 g/t Ag (848 g/t AuEq or 63,658 g/t AgEq) over 2m; hole LRGAG-22-221 with 0.85 g/t Au and 138 g/t Ag (2.69 g/t AuEq or 202 g/t AgEq) over 29.4m, including 4.98 g/t Au and 749 g/t Ag (14.97 g/t AuEq or 1,122 g/t AgEq) over 4.4m, including 12.70 g/t Au and 2,370 g/t Ag (44.3 g/t Au Eq or 3,322 g/t AgEq) over 0.9m; and hole LRGAG-22-222 with 0.94 g/t Au and 105 g/t Ag (2.34 g/t AuEq or 176 g/t AgEq) over 8.7m, including 7.6 g/t Au and 592 g/t Ag (15.49 g/t AuEq or 1,162 g/t AgEq) over 0.6m. “Drilling at the Eagle Deposit has returned the highest grade intercepts to date in the district. These wide high grade intercepts are consistent with geophysical targets on the new Eagle concession”.
Bendito Resources Inc., announced the preparation of a NI 43-101 Technical Report for its Oposura project in Sonora. Highlights of this technical report include the potential to support Mineral Resource Estimate (MRE) at Oposura, once appropriate data verification and modelling has been completed; Mineralization at Oposura consists of base and precious metal, massive sulphide manto-style of Zn, Pb-Ag; Additional drilling is needed to extend MRE and connect it to other already known zones; presence of undrilled targets with upside potential demonstrated by geophysics and surface mapping and sampling, including the Mina Blanca Target which consists of polymetallic veins; and potential for discovery of the porphyry source, the same that has been partially intercepted in some holes underneath the MRE.
Gatos Silver Inc. updated on extension and resource definition drilling results on its Cerro Los Gatos property in Chihuahua. Highlighted true-width intercepts from the South-East Deeps zone comprise 5.7 m @ 0.13 gpt Au, 47 gpt Ag, 0.42% Cu, 1.8% Zn, 5.3% Zn; 11.3 m @ 0.43 gpt Au, 118 gpt Ag, 0.12% Cu, 1.9% Pb, 2.5% Zn; 2.0 m @ 771 gpt Ag, 0.16% Cu, 0.1% Pb, 0.7% Zn, while those from the definition drilling comprise 3.2 m @ 0.26 gpt Au, 52 gpt Ag, 0.58% Cu, 2.8% Pb, 9.5% Zn; 4.5 m @ 0.52 gpt Au, 88 gpt Ag, 4.3% Pb, 10.0% Zn; 5.3 m @ 0.15 gpt Au, 99 gpt Ag, 0.40% Cu, 3.4% Pb, 5.9% Zn; 9.60 m @ 0.14 gpt Au, 90 gpt Ag, 0.29% Cu, 2.6% Pb, 1.7% Zn. Drilling on the South-East Deeps has defined a zone of more than 950 m along strike, and extended the zone 85 m downdip, remaining open laterally and at depth. “Resource conversion and extension drilling at CLG in the North-West, Central and South-East zones has returned strong results with particularly high base metal values”. Over 45 targets have been identified on the 103,000 hectares land package.
Discovery Silver Corp.reported a preliminary feasibility study (PFS) on its Cordero project in Chihuahua. The base case scenario involves an after tax NPV5% of US$1.2 Billion and an IRR of 28%, an 18-year mine life (to mine only 42% of the mineral reserves) with an average of 33 Moz AgEq production per year, with an average AISC of $12.80 per Oz AgEq in the first 12 years as well as an initial development capex of $455 M with a NPV-to-capex ratio of 2.5x. Measured and indicated mineral resources comprise 716 M tonnes averaging 20 gpt Ag, 0.06 gpt Au, 0.29% Pb, 0.38% Zn (or 49 gpt AgEq), containing 467 M Oz Ag, 1.26 M Oz Au, 4,544 M Lb Pb, 8,484 M Lb Zn. Inferred resources comprise 145 M tonnes @ 14 gpt Ag, 0.02 gpt Au, 0.23% Pb, 0.38% Zn (or 35 gpt AgEq), containing 67 M Oz Ag, 122 K Oz Au, 726 M Lb Pb, 1,215 M Lb Zn.
Vizsla Silver Corp. updated the mineral resource estimate at it Panuco project in Sinaloa. The report reveals 71% and 150% increments in indicated and inferred mineral resources, and an increase on the grade of 14% and 42% respectively. Indicated minerals resources stand at 7.5 M tonnes @ 243 gpt Ag, 2.12 gpt Au, 0.23% Pb, 0.71% Zn (or 437 gpt AgEq) containing 58.3 M Oz Ag, 508 K Oz Au, 17 K tonnes Pb, 53.3 K tonnes Zn. Inferred mineral resources host 7.2 M tonnes @ 304 gpt Ag, 2.14 gpt Au, 0.19% Pb, 0.54% Zn, hosting 70.7 M Oz Ag, 496 K Oz Au, 13.6 K tonnes Pb, 39.3 K tonnes Zn. The estimate encompasses 8 km of the 86 km of cumulative vein length in the district, including results from 202,709 m of drilling in 644 holes.
Endeavour Silver Corp. filed technical reports on the Guanaceví and the Bolañitos projects, disclosing updated mineral resources estimates. At Guanaceví, in Durango, mineral reserves comprise 1.26 M tonnes @ 476 gpt Ag, 1.14 gpt Au, containing 19.3 M Oz Ag, 46 K Oz Au (or 23 M Oz AgEq); measured and indicated mineral resources (exclusive of mineral reserves) are 714.4 K tonnes @ 467 gpt Ag, 1.2 gpt Au, containing 10.7 M Oz Ag, 27 K Oz Au (or 12.8 M Oz AgEq); inferred resources comprise 838.7 K tonnes @ 416 gpt Ag, 0.9 gpt Au, containing 11.2 M Oz Ag, 25 K Oz Au (or 13.1 M Oz AgEq). At Bolañitos, in Guanajuato, mineral reserves comprise 534 K tonnes @ 101 gpt Ag, 2.8 gpt Au, containing 1.2 M Oz Ag, 42.6 K Oz Au; (or 4.6 M Oz AgEq); measured and indicated mineral resources (exclusive of mineral reserves) are 453.5 K tonnes @ 110 gpt Ag, 2.3 gpt Au, containing 1.6 M Oz Ag, 34 K Oz Au (or 4.1 M Oz AgEq); inferred resources comprise 1.66 M tonnes @ 141 gpt Ag, 2.5 gpt Au, containing 7.5 M Oz Ag, 132.2 K Oz Au (or 17.6 M Oz AgEq).
ON DEALS AND CORPORATE ISSUES
Discovery Silver Corp., announced the appointment of its new CEO, effective immediately, and the promotion of Román Solis to VP Mexico (Cordero property, Chihuahua).
Altaley Mining Corporation announced the appointment of its new CFO, effective on February 1st, 2023 (Tahuehueto project, Durango).
Tarachi Gold Corp. signed a binding letter agreement with Compañía Minera de Atocha S.A. de C.V. for the sale of the Magistral project in Durango. At closing of the transaction Atocha will make a cash payment of US$4.05 M; further US$500 K when 50% of the tailings have been mined/sold or processed, or after the second calendar year of operation at the project; US$500 K when 100% of the tailings have been mined/sold or processed, or after the second calendar year of operation at the project, and the amount of value added tax (IVA) owed to the company by the government, estimated at US$650 K. “Tarachi will seek to settle all outstanding obligations owing to Manto Resources S.A. de C.V. (“Manto”) in relation the Company’s original acquisition of the Magistral Project from Manto in 2021 ….. Tarachi will pay to Manto 15% of all payments received from Atocha in the Transaction as those payments are received”. Tarachi expects to receive from the transaction, net of payments made to Manto, a total of US$4.84 M.
Vizsla Silver Corp. appointed Charles Funk as Lead Technical Advisor, and Michael Pettingeli was promoted to Senior Vice President, business development and strategy. (Panuco, Sinaloa).
During the 3rd week of the year (January 16th to January 22nd, 2023), 20 companies working in Mexico released news on their properties. Two companies posted on exploration of non-advanced properties, six companies posted on Q4 2022 production figures, one released its 2023 production guidance and one announced the re-start of operations at a processing plant in Guanajuato. One company extended the maturity date of convertible debentures. Five companies informed on work at its advanced properties, including three that released drilling results and two that updated on mineral resources. One company restricted the NSR agreement on an advanced property, one informed on the acquisition of a past-producing mine and one other informed on the leasing of its processing plant for part of the profits. ON MEXICO ISSUES, no relevant news. ON EXPLORATION, In Sonora, Reyna Gold released sample results from its La Gloria project. In Jalisco, Almadex Minerals updated on exploration plans at San Pedro. ON MINING, Orla Mining, Avino Silver, Fortuna Silver, Gold Resource, Pan American Silver and First Majestic Silver presented production reports for Q4 2022. Torex Gold released its 2023 production guidance and Guanajuato Silver is to start processing at the Cata mill in Guanajuato. Capitan Mining released drill results from the Jesús María system at its Cruz de Piedra project in Durango. ON FINANCING, Excellon Resources is to convert C$4.5 M of debentures into equity and extend the maturity of remaining principal. ON RESOURCES AND DEVELOPMENT, GR Silver released drilling results from the SE zone of the San Marcial project in Sinaloa. Regency Silver updated the resource estimate at Dios Padre in Sonora. GoGold Resources posted drilling results from El Favor deposit at its Los Ricos North project in Jalisco. Excellon Resources filed a PEA on La Negra deposit in Hidalgo. ON DEALS AND CORPORATE ISSUES, Defiance Silver restructured an option agreement to acquire the NSR at the Tepal project in Michoacan. Excellon Resources announced last week the acquisition agreement on the past-producing La Negra mine in Hidalgo. Xali Gold signed a lease for part of the profits obtained in the processing of minerals by a private company at its San Dieguito de Arriba mill in Nayarit. ON SOCIAL RESPONSIBILITY, First Majestic Silver received the “Silver Helmet Award” for underground mining with more than 500 workers for its health and safety performance.
ON MEXICO ISSUES
No Relevant News.
Reyna Gold Corp. released sample results from district-scale exploration at its 24,215 hectare La Goloria property in Sonora. At Las Carmelitas 43 samples average 2.25% Cu, 89 gpt Ag, 0.21 gpt Au and 0.48% Sb defining a supergene enrichment zone on conglomerate, agglomerate and sandstone with a 2.5 Km by 1.7 km footprint continuing undercover in several directions. At the Western target new parallel structures have been discovered on a 1,500 by 450 m zone with eight samples returning 2.89 to 11.35 gpt Au, up to 27 gpt Ag and 22 to 135 gpt Tellurium. At La Republicana the northwest-southeast trend has now been extended with discontinuous veins and veinlets for 2.8 km, and a width of 625 m with grades of up to 103.5 gpt Au, 283 gpt Ag, 2.4% Cu, 5.33% Pb, 0.12% Zn. “At least 3 hydrothermal events have occurred in the zone: 1) veins and veinlets of white quartz (occasionally greyish) with the presence of galena, chalcopyrite, and covellite, 2) veins and veinlets of quartz-tourmaline (cutting first event structures) coarse pyrite is observed, traces of chalcopyrite and secondary minerals such as hematite, jarosite, malachite and chrysocolla, 3) filling of calcite and iron carbonates within second event structures”. Drilling is programmed for March 2023.
Almadex Minerals Ltd. updated on exploration plans for its San Pedro project in Jalisco. The breccias intercepted in 2022 drilling appear to have a sub horizontal distribution. “Further surface mapping is planned to confirm and refine this interpretation in order to optimise the next drilling program. The elevated base metals and copper seen in the breccia, along with acid sulphate altered fragments suggests that the breccia and related mineralisation may be a late feature in the lithocap environment”. It is interpreted that the acid sulphate lithocap present has potential for gold mineralization, and deep copper potential beneath.
Orla Mining Ltd. provided an operational update for the fourth quarter 2022. The Camino Rojo Oxide mine produced 32,017 Oz Au during the period, and 109,596 Oz Au throughout the full year. All-in sustaining costs (AISC) has been maintained at $600 to $700 per Oz Au for the year. Production for 2023 is expected to be between 100,000 to 110,000 Oz Au. “Income taxes accrued during 2022, including Mexican Special Mining Duty, totalling approximately $35 million, will be paid in a lump sum in March 2023. Thereafter, Orla expects to pay income tax instalments monthly, beginning in May 2023”. Orla ended the year with a cash position of $96.6 M.
Avino Silver & Gold Mines Ltd. reported fourth quarter 2022 production results at the Avino mine in Durango. During the period 150.3 K tonnes were milled at an average grade of 70 gpt Ag, 0.62 gpt Au, 0.53% Cu, recovering 92% Ag, 81% Au, 88% Cu to produce 309.8 K Oz Ag, 2,426 Oz Au, 1.54 M Lb Cu (770 .1 K Oz AgEq). For the year 541.8 K tonnes were milled @ 62 gpt Ag, 0.42 gpt Au, 0.61% Cu, recovering 92% Ag, 78% Au, 89% Cu, to produce 985.2 K Oz Ag, 5,778 Oz Au, 6.50 M Lb Cu (2.65 M Oz AgEq). The dry-stack tailing facility was commissioned and is now fully operational.
Guanajuato Silver Company Ltd. announced that the Cata mill has commenced precious metals processing at the Valenciana Mines Complex (VMC) in Guanajuato. The company is to start processing material at a rate of 8 K tonnes per month and to increase it later in the year to 20 K tonnes per month. The mill has a nameplate capacity of 36 K tonnes per month. “The Company plans to operate the Cata mill with production from both VMC and the San Ignacio mine …… intends to backfill tailings underground using a hydraulic fill system that will make use of select voids and open stopes that have been created at VMC over the past 450 years of underground mining”.
Torex Gold Resources Inc. provided operational guidance for 2023 and 5-year production outlook for the Morelos Complex in Guerrero, which comprises the El Limón Guajes (ELG) Complex and the Media Luna project. For 2023 at ELG the expected gold production is between 440 K and 470 K Oz Au at total cash costs $740 to $780 per OZ Au and all-in sustaining costs of $1,080 to $1,130. “The strip ratio for 2023 is expected to average 10.7:1 compared to 8.9:1 in 2022 given additional laybacks within the El Limón and El Limón Sur open pits. Based on the current mine plan, a higher portion of waste is expected to be mined in the second and third quarters compared with the first and fourth quarters”. Approximately $39 M are budgeted for exploration and drilling in 2023, including $20 M for Media Luna, $6 M for ELG underground, $8 M for exploration in near mine on early exploration targets and $5 M in definition and grade control drilling. For the next five years production is expected to be in the 400 K to 500 K Oz Au per year.
Fortuna Silver Mines Inc. reported production results for the fourth quarter 2022, including figures from its Mexican operations. During the fourth quarter 259.5 K tonnes were milled at a rate of 2,883 tonnes per day (tpd), averaging 194 gpt Ag, 1.13 gpt Au, recovering 91.1% Ag, 89.8% Au to produce 1.47 M Oz Ag, 8,499 Oz Au. For the year, 1.03 M tonnes were milled at a rate of 2,925 tpd, averaging 191 got Ag, 1.14 gpt Au, to produce 5.76 M Oz Ag, 34,124 K Oz Au. For 2023 the company plans to process 1.03 M tonnes @ 186 gpt Ag, 1.19 gpt Au, reflecting the declining grade profile of mineral reserves.
Gold Resource Corp. released fourth quarter 2022 production for the Arista mine in Oaxaca. During the period 97.8 K tonnes were milled at a rate of 1,353 tonnes per day, averaging 2.68 gpt Au, 91 gpt Ag, 0.37% Cu, 2.29% Pb, 4.79% Zn to produce 6,933 Oz Au, 265.8 K Oz Ag, 284 tonnes Cu, 1,808 tonnes Pb, 3,920 tonnes Zn.
Pan American Silver Corp. announced preliminary production results for the Q4 2022, including figures from its Mexican operations. At La Colorada, in Zacatecas, 1.34 M Oz Ag, 700 Oz Au were produced during the period, for a yearly total of 5.93 M Oz Ag, 3,300 Oz Au. At Dolores, in Chihuahua, 0.59 M Oz Ag, 34,600 Oz Au were produced during the quarter, for a yearly production of 2.24 M Oz Ag, 136,900 Oz Au.
First Majestic Silver Corp. released total production results for the fourth quarter of 2022. The company’s consolidated production from its three operating mines in Mexico (San Dimas in Durango, Santa Elena in Sonora, La Encantada in Coahuila) was 2.39 M Oz Ag, 46,194 Oz Au (or 6.17 M Oz AgEq). The liquid natural gas powerplant at Santa Elena was expanded from 12 MW to 24 MW “to supply low‐cost, clean power to the Ermitaño mine and the recently completed dual‐circuit plant”. In exploration, four drilling rigs are operating at Dan Dimas, in Durango, three at Santa Elena in Sonora and one at La Encantada, in Coahuila.
Excellon Resources Inc. entered into a binding term sheet with holders representing approximately 66.67% of the principal “amount of outstanding convertible debentures to convert 25% of the debentures (C$4.5 M) into equity and reprice and extend maturity of remaining principal outstanding upon closing the acquisition of La Negra property in Queretaro, providing greater flexibility to the Company. Furthermore, reprice the conversion price of the remaining principal to C$0.535 per share, 6.5% interest rate or 10.0% payable in shares at the company’s election” (La Negra, Hidalgo).
ON RESOURCES AND DEVELOPMENT
GR Silver Mining Ltd. released surface drilling results from six holes in the Southeast Area of the San Marcial project in Sinaloa. Highlighted core-length intervals comprise 5.6 m @ 1,223 gpt Ag, 1.4% Pb, 1.2% Zn (including 0.3 m @ 25,150 gpt Ag, 30% Pb, 18.6% Zn); 82.7 m @ 121 gpt Ag (including 0.4 m @ 3,386 gpt Ag and 1.1 m @ 1,391 gpt Ag); 112.6 m @ 61 gpt Ag (including 0.9 m @ 1,055 gpt Ag); 0.6 m @ 14.3 gpt Au. “The six holes represent extensions along strike or down dip, creating the potential to expand silver mineralization boundaries”.
Capitan Mining Inc. released drill assays for five holes on the Jesus Maria zone at the Cruz de Piedra project in Durango. Highlighted core length intervals comprise 16.8 m @ 0.35 gpt Au, 187 gpt Ag, 0.1% Pb, 0.1% Zn (including 1.5 m @ 1.36 gpt Au, 1,381 gpt Ag, 0.8% Pb, 0.5% Zn); 4.6 m @ 0.63 gpt Au, 183 gpt Ag (including 1.5 m @ 1.45 gpt Au, 504 gpt Ag); 15.2 m @ 0.44 gpt Au, 21 gpt Ag, 0.5% Pb, 0.8% Zn (including 1.5 m @ 1.82 gpt Au, 81 gpt Ag, 3.2% Pb, 4.2% Zn). The Jesus Maria zone has been traced by trenching and drilling for 750 m of strike length to a depth of up to 150 m “On Dec 6 th, 2022, Capitan announced that it had entered into a transaction with a third party to consolidate the 2.5km high grade Jesus Maria trend”.
Regency Silver Corp. announced an updated resource estimate for its Dios Padre project in Sonora. The updated resource estimate incorporates 1,056 m of drilling in 8 holes drilled in 2022 and 10,425 m of historic drilling in 66 holes, to define inferred resources of 1.384 M tonnes @ 228 gpt Ag, 0.32 gpt Au (255.6 gpt AgEq) containing 10.14 M Oz Ag, 14,000 Oz Au. “The resource estimate contains information from the historic Dios Padre silver mine only and does not include any information from the recent discovery hole REG 22-01 which contained an intercept of 35.8 metres of 6.84 g/t gold, 0.88% copper and 21.82 g/t silver”.
GoGold Resources Inc. released the results of eight holes from El Favor East deposit within Los Ricos North project in Jalisco. Highlighted core length intervals comprise 84.5 m @ 0.24 gpt Au, 79 gpt Ag; 44.8 m @ 0.30 gpt Au, 111 gpt Ag (including 17.3 m @ 0.71 gpt Au, 225 gpt Ag); 7.8 m @ 0.45 gpt Au, 190 gpt Ag; 19.9 m @ 0.59 gpt Au, 392 gpt Ag (including 5.0 m @ 1.97 gpt Au, 1,300 gpt Ag, which includes 1.2 m @ 6.48 gpt Au, 3,722 gpt Ag); 18.3 m @ 0.21 gpt Au, 97.4 gpt Ag; 35.2 m @ 0.18 gpt Au, 130 gpt Ag. “El Favor is located approximately 800 meters along strike to the east of the El Orito deposit. The combined systems cover approximately 2.9km in mineralized strike length over a 3.7km distance”.
Excellon Resources Inc. filed a preliminary economical assessment on La Negra project in Queretaro. The report summarizes the mineral resource estimate with 2.46 M tonnes @ 64 gpt Ag, 1.95% Zn, 0.50% Cu, 0.27% Pb, containing 5.1 M Oz Ag, 105.8 M Lb Zn, 27.1 M Lb Cu, 14.6 M Lb Pb in indicated resources and 6.42 M tonnes @ 80 gpt Ag, 1.80% Zn, 0.40% Cu, 0.65% Pb, containing 16.5 M Oz Ag, 254.8 M Lb Zn, 56.6 M Lb Cu, 92.0 M Lb Pb as inferred resources. The PEA envisages 7.4 years of mine life processing 6.22 M tonnes averaging 63 gpt Ag, 1.5% Zn, 0.4% Cu, 0.4% Pb at a daily rate of 2,500 tonnes.
ON DEALS AND CORPORATE ISSUES
Defiance Silver Corp. restructured the option agreement to acquire the 2.5% NSR at the Tepal project in Michoacan with Minera Tepal S.A. de C.V. “The company is making a payment of US $100,000 to defer all payments until June 30, 2024, at which time the remaining payment schedule will resume”.
Excellon Resources Inc. announced on January 9, 2023 a definitive acquisition agreement with Orion Resource Partners on the acquisition of the permitted, past-producing mine of La Negra, in Queretaro. The deal involves the payment on US$50 M paid through an upfront payment in shares of Excellon totaling US$20 M upon closing of the acquisition and a further US$30 M of deferred, “contingent consideration payable in common shares of the Company or in cash at the Company’s option, following the restart of commercial production”. La Negra property counts with 2.46 M tonnes @ 64 gpt Ag, 1.95% Zn, 0.50% Cu, 0.27% Pb, containing 5.1 M Oz Ag, 105.8 M Lb Zn, 27.1 M Lb Cu, 14.6 M Lb Pb in indicated resources and 6.42 M tonnes @ 80 gpt Ag, 1.80% Zn, 0.40% Cu, 0.65% Pb, containing 16.5 M Oz Ag, 254.8 M Lb Zn, 56.6 M Lb Cu, 92.0 M Lb Pb. The current PEA envisages 7.4 years of mine life processing 6.22 M tonnes averaging 63 gpt Ag, 1.5% Zn, 0.4% Cu, 0.4% at a daily rate of 2,500 tonnes.
Xali Gold Corp. signed a binding letter of intent with Minera Cinco Reales S.A. de C.V. on the San Dieguito de Arriba plant in Nayarit. Xali will have the right to receive 15% of the net profits from any mineral that is processed at the plant, or minimum payments of US$10 K in the fourth month from the signing, US$20 K on the fifth month, US$30 K on the sixth month, US$40 k on the seventh to tenth months, US$50 K from month eleven on. Before the fourth month, Xali should receive US$6.5 K on January 30th, US$6.5 K on February 27th, US$6.5 K on March 22nd. “Upon the execution of this Agreement, MCR will act as the only operator of the plant and will have the exclusive option to obtain permits and refurbish the plant and equipment to operational status and to manage and operate the SDA plant for their benefit for an initial period of 14 months …… Minera Cinco Reales operates several mines and processing plants (150 to 300 tonnes per day) in Northern and Central Mexico producing gold, silver, copper, lead and zinc”.
ON SOCIAL RESPONSIBILITY
First Majestic Silverwas awarded the prestigious “Silver Helmet Award” in the category of “Underground Mining of More Than 500 Workers” by the Mining Chamber of Mexico for its outstanding performance in occupational safety and health on its Santa Elena operations in Sonora.
On the image below: Tectonic breccia in granitic rock sealed by fine grained darker intrusive on a copper project in the Sonoran Desert. Picture by Abraham López.
During the 1st week of the year (January 2nd to January 8th, 2023), 11 companies working in Mexico released news on their properties. No companies posted on exploration of non-advanced properties, one company posted on Q4 2022 production figures (that’s fast reporting!), no companies reported financing news. Seven companies informed on work at their advanced properties, including three that released drilling results. One mining company is dealing with uncertainty on operation rules, as SEMARNAT insists on not upholding previously emitted permits. Another company informed on an extension to an agreement for the processing of tailings. ON MEXICO ISSUES, no relevant news. ON EXPLORATION, no relevant news. ON MINING, Bear Creek Mining presented production figures for the Mercedes mine in Sonora. ON FINANCING, no relevant news. ON RESOURCES AND DEVELOPMENT, Zacatecas Silver filed a technical report with their initial mineral resource estimate for the Esperanza project in Morelos. Aztec Minerals updated on 2022 work at Cervantes in Sonora, and plans for 2023. GoGold Resources provided an outlook for work at Los Ricos Sur and Los Ricos Norte projects in Jalisco during 2023. Impact Silver released drilling results from two new veins in Zacualpan, Estado de Mexico. Avino Silver released drilling results from the Avino vein in Durango. Bendito Resources is to perform a reverse circulation drilling campaign at several targets on its El Alacrán project in Sonora. Minera Alamos filed a PEA on the Cerro de Oro project in Zacatecas. ON DEALS AND CORPORATE ISSUES, Fortuna Silver received notice from SEMARNAT on the re-assessment of the environmental impact authorization for the San Jose mine in Oaxaca. Xali Gold extended the production earn-in agreement with Sun River on the Tailings Project at El Oro, in Estado de Mexico. ON SOCIAL RESPONSIBILITY, no relevant news.
ON MEXICO ISSUES
No Relevant News.
No Relevant News.
Bear Creek Mining Corp. presented production figures for Q4 2022 from its Mercedes mine in Sonora. During the period, 13,710 Oz au, 40.2 K Oz Ag were produced, and a new high-grade vein was discovered at the Marianas zone. “Development work is ongoing in the Marianas, Rey de Oro and San Martin zones. There are approximately 80 meters of development required in Marianas to establish underground drilling station, Bay 5, and prepare for ore production from this zone”. Highlighted core length intercepts comprise 0.8 m @ 89.1 gpt Au, 192 gpt Ag; 3.5 m @ 5.8 gpt Au; 3.6 m @ 13.1 gpt Au in new veins and 0.9 m @ 26.2 gpt Au, 23 gpt Ag in an extension to a known vein.
No Relevant News.
ON RESOURCES AND DEVELOPMENT
Zacatecas Silver Corp. filed a Ni-43-101 compliant technical report supporting the initial mineral resource estimate at the Esperanza project in Morelos. The resources consist of 30.3 M tonnes @ 0.92 gpt Au, 8.6 gpt Ag in pit-constrained measured and indicated resources containing 899 K Oz Au, 8.4 M Oz Ag, and 270 K tonnes @ 1.58 gpt Au, 11.0 gpt Ag in out of pit measured and indicated resources containing 14 K Oz Au, 96 K Oz Ag. Pit-constrained inferred mineral resources stand at 8.3 M tonnes @ 0.86 gpt Au, 14.7 gpt Ag, containing 229 K Oz Au, 3.9 M Oz Ag and out of pit inferred mineral resources stand at 479 K tonnes @ 1.77 gpt Au, 11.8 gpt Ag, containing 27 K Oz Au, 182 K Oz Ag. The resource estimate was calculated with 69,924 m of drilling in 399 holes, of which 341 intersect the modelled resource.
Aztec Minerals Corp. updated on work completed in 2022 and its outlook for 2023 at the Cervantes project in Sonora. During the year ownership interest of the Cervantes project was consolidated to 100%, two phases of drilling were completed continuing to expand the area with broad widths of oxide mineralization. For 2023 surface mapping and channel sampling are to be conducted on the first quarter to continue with step out drilling on the California target and additional targets.
GoGold Resources Inc. provided an outlook for 2023 at its Los Ricos North and Los Ricos Sur properties in Jalisco. Continued aggressive drilling at Los Ricos South is planned, with the goal of producing an updated mineral resource estimate and a preliminary economic assessment (PEA) including the effects of drilling at the Eagle concession, underground exploration and development and the completion of a pre-feasibility study (PFS). At Los Ricos Norte the company will work to complete the preliminary economic assessment (PEA). GoGold “holds 45 concessions covering over 25,000 hectares in the Los Ricos district”.
Impact Silver Corp. released significant results from surface drilling in 2022 at the Royal Mines of Zacualpan area in Estado de Mexico. Core-length results from La Luz and San Antonio greenfields targets with man portable diamond rigs comprise 1.70 m @ 227 gpt Ag, 0.2% Pb, 0.2% Zn; 0.77 m @ 113 gpt Ag, 1.0% Pb, 2.8% Zn; 1.68 m @ 239 gpt Ag; 1.60 m @ 0.6% Pb, 2.5% Zn; 3.85 m @ 0.51 gpt Au, 18 gpt Ag, 0.6% Pb, 2.3% Zn; 1.25 m @ 0.15 gpt Au, 85 gpt Ag, 0.5% Pb, 1.7% Zn; 2.18 m @ 0.30 gpt Au, 38 gpt Ag, 0.3% Pb, 2.0% Zn; 3.50 m @ 1.59 gpt Au, 22 gpt Ag, 0.1% Pb, 1.0% Zn; 2.30 m @ 0.42 gpt Au, 11 gpt Ag, 0.2% Pb, 6.2% Zn; 1.95 m @ 30 gpt Ag, 2.6% Pb, 1.9% Zn; 1.35 m @ 35 gpt Ag, 2.8% Pb, 4.2% Zn; 1.54 m @ 0.24 gpt Au, 24 gpt Ag, 0.4% Pb, 2.8% Zn; 3.0 m @ 1.90 gpt Au, 11 gpt Ag, 0.3% Pb, 0.7% Zn. “Drilling is continuing with IMPACT’s underground rig in the Mina Grande mine located in the Cuchara area and field exploration is continuing on multiple targets”.
Avino Silver & Gold Mines Ltd. released drilling results on four holes from below the deepest current level at the Avino mine in Durango. This drilling extends downdip 315 m the Avino Vein, to 800 m of known downdip length to 600 m below the surface. Highlighted true-width drill intervals comprise 16.66 m @ 0.03 gpt Au, 26 gpt Ag, 1.63% Cu (including 8.57 m @ 0.04 gpt Au, 34 gpt Ag, 2.49 gpt Cu); 23.64 m @ 0.06 gpt Au, 23 gpt Ag, 0.34 % Cu; 5.82 m @ 0.23 gpt Au, 22 gpt Ag, 0.36% Cu; 1.10 m @ 2.46 gpt Au, 9 gpt Ag, 0.3% Cu; 3.0 m @ 0.38 gpt Au, 13 gpt Ag, 0.72% Cu. An updated mineral resource estimate is scheduled for Q1 2023. “The Property contains numerous low-sulphidation epithermal veins (including the Avino vein), breccias, stockworks, and silicified zones that grade into a possible ´near porphyry´ environment within a large caldera setting…… The direction of the increasing copper grade plunges towards the east in the Avino vein. The changing tenor of the mineralization could be reflecting a transition from epithermal to porphyry-style mineralization”.
Bendito Resources Inc. is to commence drilling on the second week of the year at its Alacrán project in Sonora. Approximately 2,000 m of reverse circulation drilling on the southern extension of Loma Bonita (Au) and Mesa de Plata (Ag) towards the San Simón target, with some copper targets also to be tested. “The additional drilling on Gregors will help with the understanding of the copper mineralization and the porphyry to-epithermal transition interpreted for Alacrán…. Phase 1 drilling program is designed to target geophysical anomalies derived from induced polarization, EM and magnetic helicopter surveys that indicate the presence of sub-horizontal silica layers with steeply dipping and high-grade hydrothermal breccia feeders”. Other goals include the step-out drilling near previous high-grade copper intercepts on chalcopyrite rich hydrothermal breccia.
Minera Alamos Inc. filed the preliminary economic assessment (PEA) and mineral resource estimate for the Cerro de Oro project in Zacatecas. The project envisages an 8.2 year mine life on initial mineable 59 M tonnes @ 0.37 gpt Au, mined at 20 K tonnes per day to produce 60 K Oz Au per year during the first four years and a total of 477 K Oz Au on the mine life, with an average all-in sustaining cost (AISC) of US$873 per Oz Au. Other figures include a waste/ore ratio of 0.3, a pre-production cost of $28.1 M and an 11 months payback period.
ON DEALS AND CORPORATE ISSUES
Fortuna Silver Mines Inc. reports that it has received notice of a resolution by SEMARNAT (Environmental Regulator) on which informs that SEMARNAT is re-assessing the 12-year extension to the environmental impact authorization for the San Jose mine in Oaxaca, granted in December 2021. “Subsequent to the grant of the EIA Extension on December 16, 2021, SEMARNAT suggested that it had made a typographical error in the EIA Extension and that the correct term was two years……. Minera Cuzcatlan initiated legal proceedings to challenge and revoke the alleged typographical error, and on November 7, 2022, the Company announced that the Mexican Federal Administrative Court had issued a judgment in favour of the Company and re-confirmed the term of the EIA Extension for the San Jose Mine for a period of 12 years”.
Xali Gold Corp. extended the production earn-in agreement with Sun River Gold Corp. on the El Oro Tailings project in Estado de Mexico, in exchange for additional advanced Net Profits Interest (NPI) payments. The third extension on the expiry date to the end of December 2023 is under the following terms: continuation of advanced NPI payments of US$15 K per month, advanced payments of US$35 K in January 2023, US$50 K in June 2023, US$75 K within 20 days of receiving financing for construction. If an additional 6 months is required and Xali Gold is satisfied with permitting status, then a US$75 K is to be made. As part of the second extension previously granted Xali Gold will also receive advanced NPI payments of US$50 K per month for the first year of commercial operations and 5% NPI payments subsequently, and “the first $1.5M of the Municipality NPI owing to Xali Gold will now be paid during the first 3 years of operation”. The Tailings Project at El Oro contains an inferred resource of 1.27 M tonnes @ 2.94 gpt Au, 75 gpt Ag, containing 119,900 Oz Au, 3.06 M Oz Ag.
ON SOCIAL RESPONSIBILITY
No Relevant News.
On the image below: Historic tunnel on a copper project in the Sonoran Desert. Picture by Jorge Cirett.