Technical Report NI 43-101

The Mining and Exploration News in Mexico: Highlights on the Fourth Week of November 2024

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By Jorge Cirett                                             

During the 48th week of the year (November 25th to December 1st, 2024), companies working in Mexico posted at least 26 press releases. One company informed on exploration advances at its property, six companies presented quarterly results, six more informed on financing rounds, one released shares from escrow, one informed on dividends, one more on resumption of trading, one on the expiration of warrants, four companies updated on drilling programs and one on technical reports for its properties, two companies held their AGM’s, two more informed on contracting advertising services and two more announced appointments to the board. ON MEXICO ISSUES, taxes on the production of gold, silver and platinum have been increased by 1.5%. ON EXPLORATION, In Sonora, Tocvan Ventures announced drilling programs for Pilar and Gran Pilar projects. ON MINING, Santacruz Silver Mining, Orogen Royalties, Bear Creek Mining, Impact Silver, Luca Mining and Royalties Inc. released Q3 production results. ON FINANCING, Silver Storm Mining amended its previously completed private placement. Mithril Silver and Gold informed shares are to be released from escrow. Sailfish Royalty declared a dividend. Southern Silver Exploration announced a private placement for C$2.2 M, Sonora Gold another for C$0.5 M, Tocvan Ventures raised C$3 M and Regency Silver closed a first tranche financing for C$1.3 M. Endeavour Silver completed its prospectus offering for US$72.8 M. Silver Storm Mining resumed trading at the TSX. Vizsla Royalties informed on the expiration of warrants. Guanajuato Silver Company entered into an equity distribution agreement to issue up to C$7.5 M in shares. ON RESOURCES AND DEVELOPMENT, Fuerte Metals reported drilling results from Cristina, in Chihuahua. Guanajuato Silver Company updated on drilling and development at Pinguico, in Guanajuato. Heliostar Metals released drilling results from La Colorada, in Sonora. Silver Storm Mining completed an underground drilling program at La Parrilla, in Durango. Prime Mining filed a technical report with an updated MRE for Los Reyes, in Sinaloa. Defiance Silver updated on technical report work for its Tepal and Zacatecas projects in Michoacan and Zacatecas, respectively. ON DEALS AND CORPORATE ISSUES, Silver Storm Mining and GR Silver Mining contracted advertising services. Quetzal Copper and Orex Minerals announced appointments to the board. Silver Storm mining announced its AGM’s date. Elemental Altus Royalties announced AGM’s results. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • The Deputies Chamber commission on fiscal matters approved a reform to increase the tax on mining, migration and use of protected land. The bill increases the mining special duty from 7.0 to 8.5% on income obtained from production of gold, silver and platinum.

ON EXPLORATION

  • Tocvan Ventures Corp. is to mobilize a diamond drill rig to the 105 ha Pilar project (51/49 Tocvan/Colibri) in Sonora. The program will focus in the Main Zone to produce a robust geological model for resource estimation. Additionally, an up to 2,000 m RC drill program is to test the 100% Tocvan controlled 2,100 ha expansion area (Gran Pilar). The next round of permitting will include extraction and processing of 50 K tonnes of bulk test mining scheduled for 2025. Total cost of the pilot facility including the extraction and processing of 50 k tonnes is expected to be US$1.7 M, with the recovery of 800 – 1,400 Oz Au and 5 K Oz Ag.

ON MINING

  • Santacruz Silver Mining Ltd. reported its financial and operating results for Q3, 2024, without expanding on figures from its Mexican operations. The company had US$78.2 M in revenue, had cash equivalents of US$18.2 M and a working capital of US$24.2 M (Zimpan, Hidalgo).
  • Orogen Royalties Inc. reported financial results for the third quarter of 2024. Royalty of C$2.1 M was earned with 614 Oz AuEq attributable, net income before tax of C$254.5 K, G&A expenses of C$1 M, cashflow of C$948 K and working capital of C$23.5 M. The revenue was generated from the Ermitaño property in Sonora, operated by First Majestic Silver, where Orogen holds a 2% NSR. During the quarter 259.9 K tonnes were processed averaging 3.50 gpt Au, 68 gpt Ag with recoveries of 94% Au, 66% Ag.
  • Bear Creek Mining Corp. reported its consolidated financial results for Q3 2024. At Mercedes, in Sonora, 103.9 K tonnes were mined, 102.5 K tonnes processed, averaging 3.40 gpt Au, recovering 96% Au, to produce 10,751 Oz Au, 76.9 K Oz Ag at cash cost $1,285 per Oz Au and an AISC of $1,697 per Oz Au. During the period the company obtained revenue of US$29.7 M, a gross profit of US$5.9 M, comprehensive earnings (loss) after taxes of US$(7.0) M and held US$7.7 M in cash and short-term investments. “Expenditures on exploration drilling during the quarter totaled $0.5 million and underground delineation drilling expenses totaled $1.34 million”.
  • Impact Silver Corp. announced its financial and operating results for the third quarter 2024. At Zacualpan, in Estado de Mexico, 32.9 K tonnes were processed grading 160 gpt Ag, to produce 152.1 K Oz Ag, 176 Oz Au. At Plomosas, in Chihuahua, 12.7 K tonnes were processed in Q3, with no more details given. For the first nine months of the year Plomosas grade was 47.2 gpt Ag, 7.9% Pb, 12.7% Zn, to produce 22 K Oz Ag, 344 tonnes Pb, 1,770 tonnes Zn in concentrate. After 18 months of rehabilitation, at the end of the quarter production stood at 70% of mill capacity. Revenue was $8.6 M, with a net loss of $1.2 M, a cash position of $6.4 M working capital of $7.1 M and no long-term debt.
  • Luca Mining Corp. reported its financial results for Q3 2024. Consolidated production from the Campo Morado (Guerrero) and Tahuehueto (Durango) mines during the period included 153 K tonnes mined, 151.2 K tonnes milled at an average rate of 1,758 tpd, averaging 1.63 gpt Au, 72.2 gpt Ag, 0.69% Cu, 0.66% Pb, 2.18% Zn, recovering 45.5% Au, 45.2% Ag, 78.6% Cu, 52.3% Pb, 80.8% Zn, to produce 3,604 Oz Au, 158.8 K Oz Ag, 1.8 M Lbs Cu, 1.1 M Lb Pb, 5.9 M Lb Zn, at cash cost $1,877 per Oz AuEq, an AISC of $2,337 per Oz AuEq and an All-in cost of $2,364 per Oz AuEq. Net quarterly revenue was US$18.1 M, EBITDA was (US$1.1M), mine operating cash flow before taxes US$2.4 M. The Campo Morado improvement project is making “excellent progress”, with a 2,000 tpd rate on track a copper recovery of over 80%. In the next few months separate zinc, copper and bulk concentrates (Pb+Au+Ag) will be produced. Ramp up and commissioning is starting to meet objective levels of +800 tpd. A 5,000 m drilling campaign in 26 underground holes is in progress. The company expects to be debt free by 2026.
  • Royalties Inc. reported its results for the third quarter 2024. On Mexico, the company reported the intention to monetize the Bilbao property in Zacatecas, ideally by selling to an existing silver producer, and the intention to achieve success in the lawsuit against Capstone Gold, a subsidiary of Capstone Copper, to properly recognize and make payments on the 2% NSR on the five Portree claims, in production since 2020 as part of the Cozamin mine in Zacatecas.  

ON FINANCING

  • Silver Storm Mining Ltd. amended its previously completed private placement: “The total number of common shares of the Company issued pursuant to the Offering totaled 35,392,610, rather than the previously stated amount of 35,317,610. The number of common share purchase warrants issued totaled 17,696,305, versus the previously stated amount of 17,658,805. Cash finders’ fees paid pursuant to the Offering totaled $124,990 rather than the $133,990 previously stated. The number of finders’ warrants issued totaled 620,700 as opposed to the previously stated amount of 670,950. As such, Red Cloud Securities Inc. received $2,100 cash finder’s fees and 10,500 finder’s warrants, and Canaccord Genuity Corp. received 242,700 finder’s warrants.” (La Parrilla, Durango).
  • Mithril Silver and Gold Ltd. confirmed that 500 K ordinary shares in the company are to be released from voluntary escrow on December 3, 2024 (Copalquin, Durango).
  • Sailfish Royalty Corp. declared the company’s third quarterly dividend for 2024, of US$0.0125 per common share, payable on January 15, 2025. Sailfish also announced the settling of US$205 K in interest accrued to November 24, 2024 through the issuance of 188.6 K shares, subject to TSX approval (Gavilanes, Durango).
  • Southern Silver Exploration Corp. is to undertake a non-brokered private placement for gross proceeds of C$2.2 M. The funds will be used for the advancement of its Cerro Las Minitas project in Durango.
  • Sonoro Gold Corp. announced a non-brokered private placement offering for gross proceeds of CAD $500 K. The net proceeds are to be used development of Cerro Caliche, in Sonora.
  • Endeavour Silver Corp. announced the completion of its prospectus offering announced on November 20, 2024 for gross proceeds of US$72.8 M. “The Offering was led by BMO Capital Markets, together with a syndicate of underwriters consisting of CIBC World Markets Inc., TD Securities Inc., Ventum Financial Corp. and H.C. Wainwright & Co., LLC.”  Proceeds are to be used on the advancement of the Pitarrila project in Durango.
  • Silver Storm Mining Ltd. announced the resumption of trading of its shares on the TSX Venture Exchange on November 28, 2024 (La Parrilla, Durango).
  • Vizsla Royalties Corp. reminds holders of outstanding common share purchase warrants issued on June 24, 2024, that the warrants will expire on December 20, 2024 (Panuco, Sinaloa).
  • Regency Silver Corp. completed the first tranche of a previously announced non brokered private placement for total proceeds of C$1.27 M (Dios Padre, Sonora).
  • Tocvan Ventures Corp. arranged a non-brokered private placement for gross proceeds of up to C$3 M, including C$1.8 M from an institutional investor. Proceeds are to be used on the Gran Pilar project, in Sonora. “The Units issued to the Investor under the Institutional Offering will be subject to the terms of an escrow agreement. The Company will receive $75,000 per month from the closing date of the Institutional Offering over the next 24 months….. The Investor will receive a corporate finance fee of $126,000, payable via the issuance of 262,500 Common Shares and related Warrants” (Pilar, Sonora).
  • Guanajuato Silver Company Ltd. entered into an equity distribution agreement with Research Capital Corp. to establish an at-the-market equity program. The company may issue up to C$7.5 in common shares under the program. “The Company will pay the Agent a commission of 2.5% of the gross offering proceeds from each sale of Offered Shares..” (El Cubo, San Ignacio and Valenciana Mines Complex, Guanajuato).

ON RESOURCES AND DEVELOPMENT

  • Fuerte Metals Corp. reported results from five holes at its Cristina project in Chihuahua. “Fuerte has now reported twenty-five holes totalling 6,976.5 metres of drilling as part of a 40-50 hole, 21,000 metre drill program.” Highlighted core length intervals comprise 0.7 m @ 2.30 gpt Au, 134 gpt Ag, 0.11% Cu, 1.4% Pb, 8.8% Zn; 10.5 m @ 1.40 gpt Au, 19 gpt Ag (including 1.2 m @ 8.60 gpt Au, 21 gpt Ag); 0.4 m @ 8.20 gpt Au, 39 gpt Ag, 1.1% Pb, 1.3% Zn; 2.8 m @ 1.20 gpt Au, 88 gpt Ag, 0.24% Cu, 1.5% Pb, 5.0% Zn; 0.5 m @ 2.00 gpt Au, 323 gpt Ag, 0.94% Cu, 5.9% Pb, 18.0% Zn; 1.5 m @ 1.60 gpt Au, 54 gpt Ag, 0.16% Cu, 1.6% Pb, 3.5% Zn; 3.7 m @ 1.20 gpt Au, 6 gpt Ag, 0.2% Zn; 3.3 m @ 1.00 gpt Au, 61 gpt Ag, 0.20% Cu, 0.7% Pb, 2.3% Zn; 2.6 m @ 1.60 gpt Au, 10 gpt Ag, 0.4% Pb, 1.4% Zn; 1.1 m @ 3.40 gpt Au, 150 gpt Ag, 0.21% Cu, 8.5% Pb, 4.8% Zn; 21.0 m @ 0.20 gpt Au, 8 gpt Ag, 0.2% Pb, 0.6% Zn. The company is aiming to produce a new mineral resource estimate based on underground mining for Q3 2025.
  • Guanajuato Silver Company Ltd. updated on drilling and development programs at its Pinguico property in Guanajuato. A total of 446 m were drilled in three holes at the San Jose vein, with highlighted intervals comprising 0.70 m @ 0.75 gpt Au, 94 gpt Ag; 0.65 m @ 0.77 gpt Au, 55 gpt Ag; 0.75 m @ 1.26 gpt Au, 85 gpt Ag; 1.16 m @ 1.18 gpt Au, 51 gpt Ag; 0.45 m @ 0.87 gpt Au, 55 gpt Ag; 1.20 m @ 0.72 gpt Au, 95 gpt Ag; 0.85 m @ 2.04 gpt Au, 124 gpt Ag. The first drill hole in the property to intersect the Veta Madre structure intercepted 60 m of a highly altered deformation zone, with an interval of 1.13 m @ 0.56 gpt Au, 2 gpt Ag in a quartz stockwork. Underground mining continued at Pinguico, with the aim of reaching in Q2 2025 the historical underground backfill stockpile with an indicated resource of 25.6 K tonnes @ 1.67 gpt Au, 166 gpt Ag. Development production during the quarter contributed 2.6 K tonnes @ 1.19 gpt Au, 102 gpt Ag (203 gpt AgEq).
  • Heliostar Metals Ltd. announced results from 3,257 m of drilling in 24 holes at La Colorada, in Sonora. La Colorada ceased production in September 2023 and is currently producing gold from residual leaching. The company is evaluating the potential to restart mining in 2025, hence the drill program to expand the mineral reserve, targeting shallow zones to the east and west of the Creston Pit. The results show narrow to wide, low to high grade oxide gold intercepts hosted in three veins: the North, Intermediate and South Veins and are surrounded by smaller mineralized vein zones. Highlighted true width intercepts comprise 11.85 m @ 1.71 gpt Au, 22 gpt Ag (including 1.25 m @ 13.10 gpt Au, 20 gpt Ag); 16.07 m @ 0.34 gpt Au, 69 gpt Ag; 4.10 m @ 2.27 gpt Au, 4 gpt Ag; 11.70 m @ 2.22 gpt Au, 5 gpt Ag (including 2.70 m @ 8.79 gpt Au, 5 gpt Ag); 4.50 m @ 18.50 gpt Au, 20 gpt Ag; 31.40 m @ 1.24 gpt Au, 5 gpt Ag; 14.50 m @ 1.69 gpt Au, 5 gpt Ag (including 1.25 m @ 16.60 gpt Au, 14 gpt Ag); 4.75 m @ 0.49 gpt Au, 158 gpt Ag.
  • Silver Storm Mining Ltd. completed its underground drilling program at La Parrilla, in Durango. A total of 18,682 m was drilled, with 12,265 m reported to date. “Upon completion of the QA/QC as well as interpretation, the additional 6,417 m will be reported over the coming weeks”. Completion of a new resource estimate update is targeted for January 2025.
  • Prime Mining Corp. filed a technical report with the updated mineral resource estimate for its Los Reyes project in Sinaloa. The resources have been divided in: Open Pit Milled Resources with 1.27 M Oz AuEq (24.7 M tonnes @ 1.60 gpt AuEq) as indicated resources and 335 K Oz Au (7.2 M tonnes @ 1.45 AuEq) as inferred resources; Underground Milled Resources of 664 K Oz AuEq (4.1 M tonnes @ 5.00 gpt AuEq) as indicated resources and 406 K Oz AuEq (4.1 M tonnes @ 3.12 gpt AuEq) as inferred resources; Open Pit Heap Leach Resources with 261 K Oz AuEq as indicated resources and 76 K Oz Au as inferred resources. Total indicated resources add up to 49 M tonnes @ 0.95 gpt Au, 34.2 gpt Ag (1.39 gpt AuEq) containing 1.49 M Oz Au, 54 M Oz Ag (or 2.19 M Oz AuEq) and inferred resources to 17.2 M tonnes @ 0.97 gpt Au, 39 gpt Ag (or 1.48 gpt AuEq), containing 538 K Oz Au, 21.6 M Oz Ag (or 817 K Oz AuEq). Five drill rigs are currently active at Los Reyes, with the 2024 drill program extended from 40,000 to 50,000 m, and focusing on extending high-grade shoots and connecting between deposits and generative target drilling for high-grade at Las Primas, Mariposa, Fresnillo, Mina and other areas.
  • Defiance Silver Corp. updated on technical reports for its projects. At Tepal, in Michoacan, the company is preparing a new technical report including a new mineral resource estimate (MRE). A new PEA is to follow the release of the MRE during the course of 2025. At San Acacio, in Zacatecas, a revised technical report is being prepared. More than 25,400 m of drilling have been completed at San Acacio since the 2014 technical report, which did not comply with NI-43-101 standards. The drilling and extensive surface geological and structural mapping and surface soil sampling of the entire project are to be incorporated into current geological and resource models to prepare a mineral resource estimate and report a technical report for the Zacatecas project by mid-December.

ON DEALS AND CORPORATE ISSUES

  • Silver Storm Mining Ltd. entered into an advertisement’s services agreement with Peter Epstein for an initial term of six months, subject to renewal or cancellation. “The Company has previously convened a three-month trial with Mr. Epstein from April 1, 2024 to June 30, 2024 for the same services mentioned above …” (La Parrilla, Durango).
  • Quetzal Copper Corp. announced Ms. Lisa Thompson is joining the board of directors. At the same time John Fraser is departing from the board (Cristinas, Chihuahua).
  • Silver Storm Mining Ltd. is to hold its annual general meeting (AGM) on January 25, 2024 (La Parrilla, Durango).
  • GR Silver Mining Ltd. has engaged the services of ICP Securities Inc. to provide automated market making services under which ICP will be paid a monthly fee of $7,500 plus taxes (Plomosas, Sinaloa).
  • Elemental Altus Royalties Corp. announced results from its annual general meeting (Mercedes, Sonora).
  • Orex Minerals Inc. announced the appointment of Mr. Rakesh Malhotra as CFO. Ross Wilmot will be resigning as CFO and as a director of the company (Sandra, Durango).

ON SOCIAL RESPONSIBILITY

  • No Relevant News.

On the image below: Drilling under the scarp, in Sonora. Drone picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the Second Week of November 2024

/ Gambusino Prospector / Leave a comment

By Jorge Cirett                                             

During the 46th week of the year (November 11th to November 17th,2024), companies working in Mexico posted at least 24 press releases. Two companies informed on exploration advances at their properties, ten companies presented quarterly results and one other actualized its production forecast for the second half of 2024. Two companies released drilling results from their advanced properties, with one also providing channel sample results. One company announced a private placement probably to be used on properties in Mexico, two more companies with properties in Mexico announced financing rounds to be applied outside from Mexico and a royalties company signed a lending agreement. Two companies updated on exploration and drill results from their advanced properties, and one more company informed on its evaluation on the keeping or disinvestment on an advanced property. One company updated on legal proceedings on the cancellation of a key concession, one more held its AGM and other two informed on operating issues impacting a silverstream. ON MEXICO ISSUES most of the concentrate end-dump trailers hijacked from the Peñasquito mine were recovered empty. Two miners are dead, five unaccounted for in a mine cave-in in Sinaloa. ON EXPLORATION, In Sonora, Tocvan Ventures provided exploration results from Pilar (Gran Pilar?). In Chihuahua, Kingsmen Resources announced a drilling program at Las Coloradas. ON MINING, Gatos Silver, Mag Silver, Orla Mining, SilverCrest Metals, Discovery Silver, Avino Silver, Prime Mining, Sailfish Royalty, Dyna Resource and US Antimony, released Q3 production results and Heliostar Metals released its forecast on production for H2 2024. ON FINANCING, Apollo Silver and Osisko Development closed private placements for C$13.5 M and US$57.5 M respectively. Orex Minerals completed a warrants exercise program, Elemental Altus Royalties amended a credit facility. ON RESOURCES AND DEVELOPMENT, Osisko Development is awaiting on a permit to operate its San Antonio project in Sonora, and evaluating the sale of the asset. Endeavour Silver updated on exploration and development at Pitarrilla, in Durango. Torex Gold released results from resource upgrading drilling at EPO, in Guerrero. ON DEALS AND CORPORATE ISSUES, Chesapeake Gold updated on legal proceedings on the cancellation of a key mining concession at its Metates project in Durango. GR Silver held its AGM. Fresnillo plc and Industrias Peñoles are resolving issues arising from operational challenges that affect a silverstream.  ON SOCIAL RESPONSIBILITY, Discovery Silver released its 2023 ESG report.

ON MEXICO ISSUES

  • Nine of the eleven hijacked end-dump trailers carrying concentrate from the Peñasquito mine in Zacatecas were recovered empty on a dirt road in Durango. No detentions were made (How on this Earth can you disappear 240 tonnes of concentrate that can only be processed in a few sites in the country, and the export ports being controlled by the Navy? Yes, it is a rhetoric question).
  • Five miners were trapped by a cave-in at a mine in Badiraguato, Sinaloa.  Two persons are presumed dead and the fate of another three to five is unclear.

ON EXPLORATION

  • Kingsmen Resources Ltd. announced a diamond drill program for its 850 ha Las Coloradas project in Chihuahua. The company selected three principal target areas, the Mine, Aguilar and Leona on the Soledad structure. “The Mine target includes the old Las Coloradas mine on the SE end of the Soledad structure/vein system, and adjacent mineralized structures. The Leona target covers an area of old high grade workings approximately 530 meters long on the NW end of the Soledad II structure. The Aguilar target covers an area of old high grade workings approximately 250 meters long on the NW end of the Soledad structure/vein system”.
  • Tocvan Ventures Corp. provided exploration results from its Gran Pilar project in Sonora , adjacent to its Pilar project). A total of 541 soil samples have been collected in the project, returning up to 21.2 gpt Au, >2,000 gpt Ag, 0.62% Cu, 12.7% Pb, 2,3% Zn. “ …. zones of significant and consistently high values of gold have been identified showing several kilometers of prospective trend that remains open to the east for further expansion”.

ON MINING

  • Gatos Silver Inc. announced third quarter 2024 financial and operating results. At Cerro Los Gatos (70% Gatos Silver, 30% Dowa Metals and Mining Co.), in Chihuahua, 298.6 K tonnes were milled in the period at a rate of 3,246 tpd, averaging 285 gpt Ag, 4.0% Zn, 2.0% Pb, 0.30 gpt Au, to produce 2.42 M Oz Ag, 1,450 Oz Au, 11.4 M Lb Pb, 16.5 M Lb Zn (3.84 M Oz AgEq). By-product cash cost was $3.69 per Oz Ag and the by-product AISC $9.61 per Oz Ag. During the quarter Gatos Silver and First Majestic Silver Corp. entered into a definitive merger agreement.
  • Mag Silver Corp. announced unaudited consolidated financial results for Q3 2024. A total of 332.3 K tonnes of ore grading 481 gpt AgEq was processed at Juanicipio, in Zacatecas, producing 4.9 M Oz Ag, 7.1 M Oz AgEq, at negative cash cost of $0.12 per Oz Ag ($8.38 per Oz AgEq) and an AISC of $3.28 per Oz Ag ($10.83 per Oz AgEq), generating US$109.9 M in operating cash flow and US$96.9 M in free cash flow (Mag’s share on the Juanicipio JV is 44%). During the period Mag Silver entered into an earn-in and option exploration agreement in which Apollo Silver Corp. can acquire the Cinco de Mayo property in Chihuahua.
  • Orla Mining Ltd. announced results for the third quarter of 2024. Production at Camino Rojo in Zacatecas was 43,788 Oz Au during the period at cash cost $482 per Oz Au and an AISC of $720 per Oz Au. Average mining rate was 52 K tpd, with 18.4 K tonnes of ore stacked averaging 0.93 gpt Au. A 30,000 m drilling program is underway to test and expand mineralization beneath existing resources. “….. results confirm the presence of flat-lying (mantos) and steep sulphide replacement-style mineralization, along with skarn-type alteration, extending at least 500 meters down plunge from the existing resource”. Net income was US$21.1 M and cash flow from operating activities US$52.0 M. In October the outstanding balance of US$58.4 M was repaid on its revolving credit facility of US$283.4 M. The company elevated the 2024 production guidance to 130,000 to 140,000 Oz Au. At the end of the period net cash was US$122.5 M.
  • SilverCrest Metals Inc. released financial results for Q3 2024. At Las Chispas, in Sonora, 4.4 km of development were completed, 124.2 K tonnes were mined at a rate of 1,350 tpd, 121.8 K tonnes milled, averaging 3.87 gpt Au, 366 gpt Ag (or 674 gpt AgEq), recovering 98.5% Au, 98.3% Ag to produce 14,928 Oz Au, 1.41 M Oz Ag (or 2.66 M Oz AgEq) at cash cost $8.85 per Oz AgEq and an AISC of $13.72 per Oz AgEq. Revenue in the period was US$80.4 M, an operating cash flow of US$44.2 M and free cash flow of US$36.2 M. SilverCrest had US$158.2 M by the end of September. In October the acquisition of Silver Crest Metals by Coeur Mining Inc. was announced.
  • Discovery Silver Corp. announced financial results for Q3 2024. At the end of the period the company had a net loss of C$5.3 M, 397.7 M shares outstanding, cash and cash equivalents of C$33.4 M, total assets of C$125.1 M, liabilities for C$6.2 M and a working capital of C$30.9 M (Cordero, Chihuahua).
  • Avino Silver & Gold Mines Ltd. announced its consolidated financial results for the third quarter of 2024. During the period the company processed 156.5 K tonnes of ore to produce 281.8 K Oz Ag, 1,625 Oz Au, 1.77 M Lb Cu (or 670.9 K Oz AgEq) at its Avino mine in Durango. Revenues were US$14.6 M, mining operating income of US$5.7 M, net income of US$1.2 M, EBITDA of US$3.8 M, cash flow from operations of US$4.1 M and a mine operating cash flow before taxes of US$6.7 M. At the end of the period the company had US$7.8 M in cash and working capital of US$15.9 M. Guidance remains on track to produce 2.5 M to 2.8 M Oz AgEq in 2024. Avino continued to process historical stockpiles from the nearby La Preciosa project: “as part of a sampling program to better prepare for fresh mill feed. Initial recoveries from the lower-grade material were better than expected and provide for potential upside as the project moves forward”. The operations team is in the final stages for approval to move forward with underground development at La Preciosa.
  • Prime Mining Corp. reported its operating and financial results for Q3 2024. During the period the company announced the update of an open pit constrained resource at Los Reyes, in Sinaloa, of 49 M tonnes @ 0.95 gpt Au, 34.2 gpt Ag, containing 1.49 M Oz Au, 54 M Oz Ag (or 2.19 M Oz AuEq) in indicated resources and 17.2 M tonnes @ 0.97 gpt Au, 39 gpt Ag, containing 0.54 M Oz Au, 21.6 M Oz Ag (or 0.82 M Oz AuEq) in inferred resources. Prime Mining reported Loss and comprehensive loss of C$16.2 M, total assets of C$35.2 M, liabilities of C$0.9 M and total liabilities of C$1.7 M, with cash at the end of the quarter of C$21.2 M. Four drilling rigs are currently active at Los Reyes.
  • Sailfish Royalty Corp. announced operating and financial results for the third quarter 2024. Sailfish has no operations in Mexico, but holds 100% in the Gavilanes project in Durango.
  • Dyna Resource Inc. reported results for its third quarter 2024. During the period 61 K tonnes were mined at a rate of 663 tpd at its San Jose de Gracia project in Sinaloa, milling 61.9 K tonnes at a rate of 663 tpd, grading 3.78 gpt Au, recovering 75.4% Au to produce 5,676 Oz Au. “The Company intends to prioritize drilling high grade underground targets that can readily be brought into the mine plan as well as the continued regional program to better understand the potential of the significant land package at SJG”. Revenue was US$ 11.2 M during the period. Management believes it will achieve its production rate target of 25.5 K tonnes per month in Q4 2024. The company is working to improve plant recoveries.
  • Heliostar Metals Ltd. provided gold production guidance for the recently acquired San Agustin mine, in Durango, and the La Colorada mine, in Sonora. For the July-December 2024 period production expected for La Colorada is 4,700-4,800 Oz Au, 13.3 K-14.4 K Oz Ag (or 4,800-4,900 Oz AuEq) at cash cost $1,350-$1,450 per Oz Au and an AISC of $1,500-$1,600 per Oz Au. At San Agustin 14,650-14,950 Oz Au, 25,400-25,500 Oz Ag (or 15,200-15,300 Oz AuEq), at cash cost $1,500-$1,600 per Oz Au and an AISC of $1,650-1,750 per Oz Au. La Colorada continues to produce Au from leach pads, but mining was paused by the previous operator on September 2023. Heliostar is to determine the economic viability of restarting operations and to complete a pre-feasibility study in early Q1 2025. At San Agustin mining operations ceased due to permitting constraints and is producing Au from existing leach pads. “The Company has submitted a permit application to expand the open pit that would allow mining at San Agustin to recommence in 2025. Without approval, the San Agustin Mine will transition to care and maintenance upon completion of leaching operations.”
  • United States Antimony Corp. reported third quarter 2024 financial and operational results. The company has no operations in Mexico, but holds the Los Juarez gold project in Queretaro.

ON FINANCING

  • Apollo Silver Corp. closed a fully subscribed non-brokered private placement for aggregate gross proceeds of C$13.5 M (Cinco de Mayo, Chihuahua).
  • Osisko Development Corp. closed its previously announced private placement for aggregate gross proceeds of US$57.5 M (San Antonio, Sonora).
  • Orex Minerals Inc. completed the company’s warrant exercise incentive program raising approximately $1.2 M (Coneto, Durango).
  • Elemental Altus Royalties Corp. signed an amendment to its credit facility, exercising the US$10 M accordion feature, with the borrowing limit increased to US$50 M and Royal Bank of Canada (RBC) as a new lender in the facility, joining National Bank of Canada (NBC) and Canadian Imperial Bank of Commerce (CIBC) (Mercedes, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Osisko Development Corp. reported financial and operating results for Q3, 2024, including some information on its Mexican operations. At San Antonio, in Sonora, the company has kept the project in care and maintenance since Q3 2023, awaiting the next steps from the government of Mexico with respect to the permitting process and the status of open pit mining in the country. The company is “exploring the potential for a financial or strategic partner in the asset or for a full or partial sale of the asset”.
  • Endeavour Silver Corp. reported an update on the exploration and evaluation of its Pitarrilla property in Durango. Endeavour has re-logged the historic drill core, focusing on defining high-grade feeder structures of the Ag-Pb-Zn sulfide mineralization. The company has refurbished the ramp and extended it over 1.3 km to provide access to underground drilling. This work has confirmed the presence of at least four structures that extend through the manto (Palmito, Danna, Victoria and Casas Blancas veins), additional mineralized structures include the Norma and Danna hanging wall veins and the Peña dike. It is estimated that the first four veins are typically 3 m in width and have a vertical extent of 600 to 800 m and strike lengths of 700 m; these veins appear open to depth. Highlighted true width intervals comprise 82.92 m @ 0.02 gpt Au, 87 gpt Ag, 0.08% Cu, 0.6% Pb, 2.4% Zn; 25.94 m @ 0.04 gpt Au, 241 gpt Ag, 0.18% Cu, 0.9% Pb, 1.9% Zn (including 0.90 m @ 0.04 gpt Au, 2,020 gpt Ag, 1.6% Cu, 5.7% Pb, 4.0% Zn); 13.62 m @ 0.06 gpt Au, 183 gpt Ag, 0.04% Cu, 0.5% Pb, 1.8% Zn; 22.23 m @ 0.02 gpt Au, 112 gpt Ag, 0.06% Cu, 0.5% Pb, 3.6% Zn (including 0.92 m @ 0.21 gpt Au, 1,145 gpt Ag, 0.14% Cu, 1.6% Pb, 4.5% Zn). Highlighted Peña dike channel samples on the ramp comprise 4.20 m @ 0.07 gpt Au, 562 gpt Ag, 0.78% Cu, 5.3% Pb, 2.5% Zn; 5.35 m @ 0.09 gpt Au, 424 gpt Ag, 0.24% Cu, 4.9% Pb, 2.2% Zn; 3.85 m @ 0.09 gpt Au, 511 gpt Ag, 1.71% Cu, 3.0% Pb, 4.5% Zn.
  • Torex Gold Resources Inc. released assay results from the ongoing drill program at EPO, on its Morelos Complex, in Guerrero. Drilling has shown the potential to upgrade inferred resources to indicated resources in the NE portion of the EPO deposit. Highlighted core length intercepts comprise 36.6 m @ 9.57 gpt Au, 20 gpt Ag, 0.51% Cu (including 7.55 m @ 43.33 gpt Au, 48 gpt Ag, 0.51% Cu); 19.16 m @ 4.01 gpt Au, 3 gpt Ag, 0.30% Cu; 18.75 m @ 2.83 gpt Au, 28 gpt Ag, 1.26% Cu; 18.91 m @ 1.56 gpt Au, 73 gpt Ag, 2.62% Cu on resource conversion and 5.10 m @ 3.70 gpt Au, 30 gpt Ag, 1.37% Cu; 3.00 m @ 4.90 gpt Au, 21 gpt Ag, 0.28% Cu; 3.18 m @ 3.56 gpt Ag; 39 gpt Ag, 0.95% Cu; 8.33 m @ 0.44 gpt Au, 45 gpt Ag, 1.44% Cu; 2.37 m @ 0.46 gpt Au, 149 gpt Ag, 3.24% Cu; 3.59 m @ 0.51 gpt Au, 69 gpt Ag, 2.23% Cu, in advanced exploration beyond the resource boundary to the north of EPO. The EPO geology described in the press release highlights its complexity, with skarn, CRD and intermediate sulfidation epithermal mineralization events.

ON DEALS AND CORPORATE ISSUES

  • Chesapeake Gold Corp. updated on legal proceedings related to its 700 ha San Vicente 3 mineral concession. The proceedings against the Dirección General de Minas (DGM) are the company’s response to the cancellation of one of 12 concessions within its 4,260 ha  Metates project in Durango (the largest undeveloped gold deposit in Mexico). “Chesapeake began nullity proceedings to have the cancellation of San Vicente 3 declared as null and void by the North Center III and Auxiliary Regional Chamber of the Federal Court of Administrative Justice (the “Chamber”) based on certain procedural arguments. The Chamber dismissed the Company’s lawsuit in a 2-1 split decision, with the dissenting judge finding the Company’s arguments to be well-founded. The Company plans to appeal before the Collegiate Court and to pursue all legal remedies available”. The concession covers part of the mineral resource, and its cancellation would hinder the ability to develop the Metates project as outlined on the PEA.
  • GR Silver Mining Ltd. held its annual general meeting (AGM) with all matters brought before the meeting approved (Plomosas, Sinaloa).
  • Fresnillo plc. has secured notice over operational issues at Industrias Peñoles Sabinas mine in Zacatecas, affecting silver output. There is a silverstream contract comprising a series of 12 agreements between Fresnillo and Peñoles, following which the London-listed miner has the right to receive all proceeds from the payable silver. “The operational challenges at the mine have prompted immediate discussions between the two companies to evaluate the situation and its implications for the agreement”.

ON SOCIAL RESPONSIBILITY

  • Discovery Silver Corp. released its 2023 ESG (environmental social and governance) report, highlighting the reception of the Quality Environmental Certification, the Socially Responsible Enterprise (ESR) Distinction and the Great Place to Work Certification (Cordero, Chihuahua).

On the image below: Clear vein scarps in a copper project in Sonora. Drone picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the Third Week of October 2024

/ Gambusino Prospector / Leave a comment

By Jorge Cirett                                             

During the 42nd week of the year (October 14th to October 20th, 2024), companies working in Mexico posted at least 17 press releases. One company informed on exploration advances on its property, six companies posted quarterly results, two companies closed private placements, one company bought back shares advanced on a failed option deal outside Mexico, one company fully paid debt, one company reported a new MRE, three companies announced appointments to the board, one company informed on AGM results and one more completed the acquisition of a mining district. ON MEXICO ISSUES, no relevant matters. ON EXPLORATION, in Sinaloa, Prismo Metals has an ongoing drill program at Palos Verdes. ON MINING, GoGold Resources, Endeavour Silver, First Majestic Silver, Avino Silver & Gold Mines, Sierra Metals and Bear Creek Mining released Q3 production results. ON FINANCING, Osisko Development and Heliostar Metals closed private placements, Starcore International Mines bought back shares issued as payment for an option agreement, Orla Mining paid US$58.5 M to become debt free. ON RESOURCES AND DEVELOPMENT, Prime Mining presented a new mineral resource estimate for its Los Reyes project in Sinaloa. ON DEALS AND CORPORATE ISSUES, Santacruz Mining, Heliostar Metals and Starcore International Mines informed on board appointments. Florida Canyon Gold shareholders were advised to vote in favor of the deal with Integra Resources. Vizsla Silver presented results of its AGM. Vizsla Silver completed the acquisition of La Garra-Metates District in Sinaloa. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • No Relevant News.

ON EXPLORATION

  • Prismo Metals Inc. has an ongoing drill program at Palos Verdes, in Sinaloa. “The first hole is designed to cut both the Palos Verdes vein as well as the high-grade gold-silver vein about 50 meters downdip from the previous intersections. Assays reported from last year’s drilling include hole PV-23-25 with 102 g/t gold, 3,100 g/t silver and 0.26% zinc over 0.5 meters…”

ON MINING

  • GoGold Resources Inc. reported production from its operation at the Parral tailings in Chihuahua, for the quarter ending on September 30, 2024. During the period 167 K Oz Ag, 2,232 Oz Au, 132 tonnes Cu, 100 tonnes Zn (or 406.2 K Oz AgEq) were produced.
  • Endeavour Silver Corp. reported third quarter 2024 production of 874.7 K Oz Ag, 9,290 Oz Au (or 1.6 M Oz AgEq). At Guanaceví, in Durango, 67.1 K tonnes were processed at a rate of 729 tpd, grading 402 gpt Ag, 1.46 gpt Au, recovering 88.7% Ag, 89.8% Au, to produce 768.9 K Oz Ag, 2,828 Oz Au. At Bolañitos, in Guanajuato, 108 K tonnes were processed at a rate of 1,174 tpd, grading 36 gpt Ag, 2.00 gpt Au, recovering 84.7% Ag, 93.1% Au, to produce 105.8 K Oz Ag, 6,462 Oz Au. Production at Guanaceví “decreased in August and September due to a trunnion failure of the primary ball mill ….. Estimated fabrication timing remains at 15 weeks with the mine being back to full operations in December 2024”.
  • First Majestic Silver Corp. announced the production of 5.5 M Oz AgEq during Q3, 2024. At Santa Elena, in Sonora, 259.9 K tonnes were processed at a rate of 2,856 tpd, grading 68 gpt Ag, 3.50 gpt Au, recovering 67% Ag, 94% Au, to produce 376.2 K Oz Ag, 27,435 Oz Au (or 2.68 M Oz AgEq). At San Dimas, in Durango, 195.3 K tonnes were processed, at a rate of 2,146 tpd, grading 188 gpt Ag, 2.12 gpt Au, recovering 89% Ag, 95% Au, to produce 1.05 M Oz Ag, 12,582 Oz Au (or 2.11 M Oz AgEq). At La Encantada, in Coahuila, 223.2 K tonnes were processed at a rate of 2,453 tpd, grading 110 gpt Ag, 0.01 gpt Au, recovering 69% Ag, 90% Au, to produce 545 K Oz Ag, 59 Oz Au (or 550 K Oz AgEq). The rest of the production came from the Jerrit Canyon mine in Nevada. Seven surface rigs and two underground rigs completed 14,796 m at Santa Elena.   Four surface rigs and 10 underground rigs completed 29,172 m of drilling at San Dimas. Two surface rigs completed 1,862 of drilling at La Encantada.
  • Avino Silver & Gold Mines, Ltd. reported production for third quarter 2024. During the period 156.5 K tonnes were processed, grading 63 gpt Ag, 0.46 gpt Au, 0.58% Cu, recovering 89% Ag, 69% Au, 88% Cu, to produce 281.8 K Oz Ag, 1,625 Oz Au, 1.77 M Lb Cu (or 670.9 K Oz AgEq) at the Avino mine in Durango. The operations team is in the final stages of approval to move forward with underground development at La Preciosa, also in Durango.
  • Sierra Metals Inc. reported third quarter 2024 production results, including figures from its Mexican operations. At Bolivar, in Chihuahua, 401.7 K tonnes were processed, grading 0.78% Cu, 201.4 gpt Ag, 0.38 gpt Au, recovering 91.5% Cu, 85.5% Ag, 69.4% Au, to produce 6.31 M Lb Cu, 222 K Oz Ag, 3,361 Oz Au.
  • Bear Creek Mining Corp. released production figures for the third quarter 2024. At the Mercedes mine, in Sonora, 103.9 K tonnes were mined, 102.5 K tonnes processed, grading 3.40 gpt Au, recovering 96% Au to produce 10.751 Oz Au, 76.9 K Oz Ag.

ON FINANCING

  • Osisko Development Corp. closed its previously announced non-brokered private placement for gross proceeds of US$34.5 M, to be invested in a project not in Mexico (San Antonio, Sonora).
  • Starcore International Mines Ltd. bought back 8.67 M common shares previously issued as partial consideration for an option agreement with K Mining SARL regarding several mineral properties in Cóte d’Ivoire. “Starcore negotiated to acquire the Shares from the sole shareholder of K Mining at $0.10 per share, payable in 12 equal tranches over 33 months” (San Martin, Querétaro).
  • Orla Mining Ltd. repaid the entirety of the outstanding balance on its revolving credit facility totaling US$58.4 M. “With this repayment, the Company is now debt free with cash on hand of approximately $120 million”. The US$150 M credit facility will remain in place and available until its expiry in August 2027 (Camino Rojo, Zacatecas).
  • Heliostar Metals Ltd. closed a non-brokered private placement for gross proceeds of C$6 M, with Eric Sprott being subscribed for the entire private placement. Following the placement, Mr. Sprott owns approximately 13% of the outstanding common shares on a non-diluted basis and 15.9% on a partially diluted basis, assuming the exercise of warrants. On a different press release Heliostar announced that almost 4 M warrants of the company have been exercised since September 16th, 2024, adding 1.19 M to the treasury.  (Ana Paula, Guerrero).

ON RESOURCES AND DEVELOPMENT

  • Prime Mining Corp. reported significant open pit expansion and new underground resources in its 2024 mineral resource estimate (MRE) at Los Reyes, in Sinaloa. The Los Reyes resource is on low sulfidation epithermal structures hosted in volcanic rocks, within the Z-T Trend, the Gudalupe Trend, the Central Trend and three Generative areas: Las Primas, Mariposa and Fresnillo. The resource is subdivided in open pit, underground and mill and heap leach operations, with 49.0 M tonnes @ 0.95 gpt Au, 34.2 gpt Ag in indicated resources containing 1.49 M Oz Au, 54 M Oz Ag (or 2.19 M Oz AuEq), and 17.2 M tonnes @ 0.97 gpt Au, 39 gpt Ag in inferred resources, containing 538 K Oz Au, 21.6 M Oz Ag (or 817 K Oz AuEq). “The updated Resource statement reflects a mixed approach that considers open pit versus underground mining on an area-by-area basis”. Highlighted results from 21 unpublished drill holes comprise 2.35 m @ 4.57 gpt Au, 62 gpt Ag; 1.35 m @ 7.87 gpt Au, 105 gpt Ag; 10.45 m @ 0.98 gpt Au, 29 gpt Ag (including 2.75 m @ 2.51 gpt Au, 57 gpt Ag); 5.54 m @ 1.12 gpt Au, 42 gpt Ag; 1.85 m @ 1.71 gpt Au, 121 gpt Ag.

ON DEALS AND CORPORATE ISSUES

  • Santacruz Mining Ltd. informed Mr. Gregg Orr, CFO, has resigned and Mr. Andres Badregal has been appointed as the interim CFO of the company (Zimapan, Hidalgo).
  • Florida Canyon Gold Inc. announced that proxy advisors, Institutional Shareholder Services Inc. and Glass, Lewis & Co. LLC. have both recommended that company shareholders vote in favor of the special resolution authorizing the resolution under the provisions of Section 192 of the Canada Business Corporations Act (CBCA) involving Florida Canyon Gold Inc. pursuant to the resolution between FCGI and Integra Resources Corp. (San Agustin and El Castillo, Durango; La Colorada, Sonora).
  • Heliostar Metals Ltd. announced the appointment of Mr. Hernan Dorado and Vice President Sustainability and Special Projects. (Ana Paula, Guerrero)
  • Vizsla Silver Corp. completed the acquisition of the La Garra – Metates District situated on the center of the Panuco – San Dimas corridor in Sinaloa. Vizsla is to pay US$3.075 M in cash and issue shares for US$7 M over a period of 24 months from the closing date of the acquisition, with partial restrictions on the subsequent sale of shares ranging from 1 to 3 years. A 1% NSR granted to the sellers can be repurchased at any time for US$750 K. The company paid US$1.6 M in back taxes owed on the mining concessions comprising the deal (Panuco, Sinaloa).
  • Starcore International Mines Ltd. announced the election of all directors nominated on its annual general meeting (San Martin, Querétaro).

ON SOCIAL RESPONSIBILITY

  • No Relevant News.

On the image below: Drilling under the scarp in Sonora. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the First Week of October 2024

/ Gambusino Prospector / Leave a comment

By Jorge Cirett                                             

During the 40th week of the year (September 30th to October 6th,2024), companies working in Mexico posted at least 12 press releases. One company informed on exploration advances on its property, one other company updated on mining operations, one company notified on the extension of a financing round, two companies granted stock options/deferred-share-units, two companies announced share consolidation programs, two companies reported drilling results on its advanced property/mine, another reported AGM results, one informed on appointments to the board and two more on their merger. ON MEXICO ISSUES, an illegal mining operation was terminated in Sonora. Vulcan Materials warned on the intensification of its legal dispute with the Mexican government. ON EXPLORATION, in Nayarit, Angel Wings Metals provided an exploration update on La Reyna project. ON MINING, Luca Mining updated on planned activities at its Campo Morado and Tahuehueto mines, in Guerrero and Durango respectively. ON RESOURCES AND DEVELOPMENT, Vizsla Silver reported drilling results from Panuco, in Sinaloa. Gatos Silver released drilling results from two areas of the Cerro Los Gatos mine in Chihuahua. ON DEALS AND CORPORATE ISSUES, Vizsla Silver presented results of its AGM. Apollo Silver made directors appointments. Coeur Mining and SilverCrest Metals announced their merger. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • An illegal gold mining operation was closed down in Sonora. The mining operation was being conducted without permits on La Cienega area in the Sonoran Desert, which is an historically active dry placer mining area. Eight persons were detained and diverse equipment sequestered.
  • Vulcan Materials warned that it is to intensify its legal dispute with the government of Mexico, under which the company demands the payment of US$1.5 billion.

ON EXPLORATION

  • Angel Wing Metals Inc. provided an exploration update on La Reyna project, in Nayarit. The exploration focus is on the El Polo-Dolorosa target area, where historic trench results include 21 m grading 5.01 gpt Au, 12.7 m grading 1.21 gpt Au and 15.52 m grading 0.92 gpt Au. “Principal prospects include the former El Polo open pit mine, and the Dolorosa, San Ramon, La Feña, and El Zorillo shallow workings. The Company intends on commencing a diamond drill program in Q4 of this year”. Exploration is focused on bulk tonnage size potential in altered and brecciated volcanic rocks with stockwork quartz veining. The first 2,500 m drill phase is to test five widely spaced prospects from near surface depths to 175 m.

ON MINING

  • Luca Mining Corp. updated on planned activities at its two mines in Mexico. At Campo Morado, in Guerrero, a mining contractor was hired to increase performance and exceed 2,000 tpd rates, improvements to metallurgy processes have been made and the first drilling program in over a decade is commencing. At Tahuehueto, in Durango, construction has been completed and commercial production is expected to be declared during Q4. A significant drilling campaign is to commence during the quarter. “Luca will commence repayments of its debt owed to Trafigura, from cashflow, in October 2024 under the terms of the restructured debt agreement”.

ON FINANCING

  • Aztec Minerals Corp. granted 1.57 M stock options to directors, management, and consultants of the company (Cervantes, Sonora).
  • GRSilver Mining Ltd. granted 97.5 K deferred share units (DSU) to non-executive directors for director’s fees to Q3 2024. eligible persons in accordance with the Omnibus Long-Term Incentive Plan. “Once vested, each DSU entitles the holder thereof to receive either one common share of the Company, the cash equivalent of one common share or a combination of cash and common shares, as determined by the Company, net of applicable withholdings” (Plomosas, Sinaloa).
  • Silver Spruce Resources Inc. proposed to consolidate its common shares on a 1:15 basis on its annual and special meeting on October 29, 2024 (Pino de Plata, Chihuahua).
  • Apollo Silver Corp. announced a non-brokered private placement for aggregate gross proceeds of up to C$10 M. Following the closing of the offering, the company intends to consolidated its issued and outstanding shares on a five to one basis. (Cinco de Mayo, Chihuahua).
  • Colibri Resource Corp. announced the extension of its non-brokered private placement to raise up to C$450 K, to close on or before November 3, 2024 (EP project, Sonora)

ON RESOURCES AND DEVELOPMENT

  • Vizsla Silver Corp. reported results from 11 holes targeting the Copala resource area at its Panuco project in Sinaloa. Highlighted true width intercepts comprise 2.88 m @ 0.45 gpt Au, 92 gpt Ag; 1.46 m @ 15.47 gpt Au, 1,935 gpt Ag; 0.55 m @ 6.26 gpt Au, 437 gpt Ag; 2.30 m @ 37.30 gpt Au, 2,851 gpt Ag; (including 1.05 m @ 73.10 gpt Au, 5,410 gpt Ag); 1.70 m @ 1.35 gpt Au, 238 gpt Ag; 5.80 m @ 14.85 gpt Au, 2,551, gpt Ag (including 0.46 m @ 146.50 gpt Au, 21,953 gpt Ag); 2.30 m @ 0.98 gpt Au, 79 gpt Ag; 4.15 m @ 3.29 gpt Au, 732 gpt Ag (including 1.37 m @ 7.56 gpt Au, 1,634 gpt Ag); 5.65 m @ 26.06 gpt Au, 3,007 gpt Ag (including 1.48 m @ 96.11 gpt Au, 10,869 gpt Ag); 0.65 m @ 1.99 gpt Au, 384 gpt Ag; 7.50 m @ 1.23 gpt Au, 222 gpt Ag; 4.90 m @ 1.06 gpt Au, 145 gpt Ag; 1.00 m @ 5.39 gpt Au, 874 gpt Ag; 0.90 m @ 12.05 gpt Au, 1,830 gpt Ag; 4.35 m @ 3.00 gpt Au, 781 gpt Ag (including 0.73 m @ 12.45 gpt Au, 2,990 gpt Ag). “Exploration and resource focused drilling at Copala has traced mineralization along ~1,770 metres of strike length and ~400 metres down dip”.
  • Gatos Silver Inc. updated on the drilling exploration programs in the 70%-owned Los Gatos district in Chihuahua. Positive results have been obtained on the Central Deeps target and the South-East Deeps zone at the Cerro Los Gatos mine, as well as key developments on the regional exploration program. Highlighted true width intercepts comprise 7.5 m @ 0.20 gpt Au, 101 gpt Ag, 0.17% Cu, 5.5% Pb, 11.1% Zn; 3.3 m @ 0.28 gpt Au, 153 gpt Ag, 0.08% Cu, 6.6% Pb, 17.5% Zn; 2.8 m @ 0.03 gpt Au, 40 gpt Ag, 0.22% Cu, 0.7% Pb, 3.0% Zn; 1.3 m @ 0.57 gpt Au, 151 gpt Ag, 0.09% Cu, 3.0% Pb, 3.8% Zn; 6.5 m @ 0.04 gpt Au, 47 gpt Ag, 0.26% Cu, 1.1% Pb, 2.4% Zn; 4.5 m @ 0.09 gpt Au, 88 gpt Ag, 0.52% Cu,1.8% Pb, 3.2% Zn; 7.8 m @ 0.17 gpt Au, 90 gpt Ag, 0.14% Cu, 4.9% Pb, 5.8% Zn; 4.4 m @ 0.20 gpt Au, 55 gpt Ag, 0.37% Cu, 3.4% Pb, 1.6% Zn, 2.8 m @ 0.07 gpt Au,122 gpt Ag, 0.56% Cu, 3.4% Pb, 9.5% Zn; 5.0 m 0.14 gpt Au, @ 126 gpt Ag, 0.35% Cu, 5.5% Pb, 15.8% Zn; 1.1 m @ 2.03 gpt Au. Drilling below the Central Zone has intercepted a new zone of mineralization, and the “latest results in the South-East Deeps zone show further extension potential to the south-east of the current mineral reserves in this area. Moreover, we continue to pursue the longer term potential across the broader Los Gatos district”.

ON DEALS AND CORPORATE ISSUES

  • Vizsla Silver Corp. held its annual general meeting, fixing the number of directors at seven persons, elected the directors for the ensuing year, re-appointed the auditor of the company and approved the company’s omnibus equity incentive compensation plan. (Panuco, Sinaloa).
  • Apollo Silver Corp. announced the appointment of Alex Tsakumis to its board of directors and of Amandip Singh as vice president, corporate development (Cinco de Mayo, Chihuahua).
  • Coeur Mining Inc. and SilverCrest Metals Inc. entered into a definitive agreement in which Coeur is to acquire all issued and outstanding shares of SilverCrest. All SilverCrest shareholders will receive 1.6022 Coeur common shares. The exchange ratio implies $11.34 per SilverCrest shares, representing an 18% premium and a total equity value of $1.7 billion based on SilverCrest’s shares outstanding. “Upon completion of the Transaction, existing Coeur stockholders and SilverCrest shareholders will own approximately 63% and 37% of the outstanding common stock of the combined company, respectively” (Palmarjo, Chihuahua; Las Chispas, Sonora).

ON SOCIAL RESPONSIBILITY

  • No Relevant News.

On the image below: Drilling under the scarp in Sonora. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the Fourth Week of August 2024

/ Gambusino Prospector / Leave a comment

By Jorge Cirett                                             

By Jorge Cirett                                              During the 34th week of the year (August 19th to August 25th,2024), companies working in Mexico posted at least 20 press releases. Three companies informed on exploration advances on their properties, three companies provided operational/financial results for the quarter, one informed on a major mill repair and one more on a mandated suspension of activities. One company granted stock options, one drew a final loan, one informed on its TSX listing and one more on a short base prospectus. One company released a revised PEA on its property and one more informed on district wide exploration and regional exploration plays. ON MEXICO ISSUES, the ambassadors of USA and Canada made clear their opposition to the judicial reform proposed by the sitting Mexican president. ON EXPLORATION, In Sonora, Colibri Resource reported on exploration at its El Plomo property in Sonora. In Chihuahua, Radius Gold informed on drilling results at Plata Verde. In Guerrero, Pantera Silver is evaluating options to restart exploration at its Nuevo Taxco project. ON MINING, Endeavour Silver informed on the repair of a mill and temporary measures to keep production ongoing at Guanaceví, in Durango. Starcore International, Sailfish Royalty and Impact Silver informed on quarterly production/financial details. Starcore International suspend mining operations at San Martin in Queretaro on safety grounds after a government inspection. ON FINANCING, Barksdale Resources granted stock options. Bear Creek Mining drew a final US$750 K from a promissory note. Vizsla Royalties is now listing in the TSX. Guanajuato Silver Company filed a final short base prospectus to offer up to US$65 M. ON RESOURCES AND DEVELOPMENT, Oroco Resources released a revised PEA on Santo Tomás, in Sinaloa. Vizsla Silver provided an update on its exploration plans at its Panuco project and two more regional plays in Sinaloa. ON DEALS AND CORPORATE ISSUES, Barksdale Resources appointed Dr. Quinton Hennigh to its board. Ranchero Gold signed a LOI on the sale of the Santa Daniela project in Sonora. Atacama Copper is changing its name to Fuerte Metals. ON SOCIAL RESPONSIBILITY, Discovery Silver released its 2023 ESG report.

ON MEXICO ISSUES

  • Ken Salazar, USA ambassador in Mexico released a letter on which criticizes the Mexican president’s proposal for reform of the Judicial system. The ambassador pointed out the problems that will arise if the proposal is passed as is, bringing a major risk to democracy in Mexico and threaten the historic trade relationships with USA. (Note by editor. – The proposal envisages the selection system for federal judges and magistrates changing from one based on professional examinations to one based on the popular vote, among other bizarre directives aimed to control the judiciary system by the executive branch).
  • Graeme Clark, Canada ambassador in Mexico stated that Canadian investors are at crossroads before the probable passing in Congress of the Judicial Reform proposed by the sitting president AMLO. According to CanCham (Cámara de Comercio de Canadá en México) 40% of Canada’s investments in Mexico are on the mining sector.  

ON EXPLORATION

  • Pantera Silver Corp. is currently evaluating options to restart exploration at the Nuevo Taxco project in Guerrero. “…work will likely focus on initial sampling and mapping in the “Southwest Zone” of the Nuevo Taxco concession”. Pantera Silver is pursuing potential acquisitions, aiming to build a portfolio of 2-3 high-quality projects, focused on silver.
  • Colibri Resource Corp. reported results of geological mapping and outcrop sampling on 4,766 ha El Plomo property at the EP project, located 25 km east of Fresnillo plc´s La Herradura mine. At the San Perfecto target mineralization is hosted by a silicified and sericitized moderately to strongly foliated diorite with quartz micro-veinlets in higher-grade samples. Of 29 rock samples recently collected, 14 returned more than 0.1 gpt Au, 9 greater than 0.5 gpt Au and 6 with more than 1.0 gpt Au. More than 616 historical samples yielded results with over 50% above 0.1 gpt Au and 15% with more than 1 gpt Au, peaking at 58.9 gpt Au. “The footprint of mineralization at San Perfecto is now approximately 1,250 m by 700m”. At La Culebra target 34 grab samples were collected, with 14 returning more than 0.1 gpt Au and five more than 1.0 gpt Au peaking at 4.64 gpt Au. “Mineralization is hosted by rusty zones which were mapped over a 650 m strike length in a northeast direction and coincident with an andesite-rhyolite contact”.
  • Radius Gold Inc. announced initial results on the exploration program at Plata Verde, in Chihuahua. The first four holes cut several zones of low-grade Ag mineralization “and indicate limited potential for an economic discovery in the eastern extension of silver mantos”. Assays are pending on four holes in the western side of the valley, with thicker favorable basaltic rock and improved visual mineralization. The most recent hole located further northwest “intersected visually improved results, cutting through greater width of basaltic host and encountering visibly the most attractive mineralization seen so far in this drilling program”. The JV partnership is extending the planned program, adding three additional drill holes.  

ON MINING

  • Endeavour Silver Corp. informed processing resumed at the Guanacevi mine in Durango, after the primary ball mill trunnion failure. Temporary modifications re-purposed one of the re-grind mills as the primary ball mill, which is running at 400 tpd (name plate capacity 1,200 tpd) during this temporary phase. “Contract mining activities and local third-party material purchases will cease until the process plant operations have returned to full capacity”. Initial quotes obtained point to a 16-weeks fabrication and installation period. During this period Guanacevi production is estimated to decrease by 0.9 M to 1.1 M Oz Ag and by 2,000 to 3,000 Oz Au.
  • Starcore International Mines Ltd. announced production results for the first fiscal quarter ended July 2024. At San Martin, in Zacatecas, 49.5 K tonnes were milled, averaging 1.92 gpt Au, 20 gpt Ag, recovering 85.2% Au, 56.9% Ag, to produce 2,841 Oz AuEq. Starcore expects to start industrial testing of carbonaceous ore in September.
  • Impact Silver Corp. announced financial and operating results for the second quarter of 2024. The company’s revenue in the quarter was C$7.7 M, also during the period a non-brokered “LIFE” and a private placement of C$8.6 M were completed, holding C$9.9 M in cash by the end of the quarter. At Zacualpan, in Estado de Mexico, 35.1 K tonnes averaging 161 gpt Ag were processed to produce 152.2 K Oz Ag. Over the last six months 5,243 m of drilling have been completed at Zacualpan. At Plomosas, in Chihuahua, 9.26 K tonnes were milled during the period, and the company expects to end the third quarter with a production rate in the 150-170 tpd range. Over the first half of the year the average grade has been 14% Zn, 8.7% Pb, 43.7 gpt Ag; during the same period 14,377 m of drilling have been completed.
  • Sailfish Royalty Corp. announced its operating and financial results for the second quarter 2024, from its operations outside Mexico (Gavilanes, Durango).
  • Starcore International Mines Ltd. suspended temporarily mining operations at its San Martin mine in Queretaro. “An unscheduled inspection at the mine conducted by the Mexican Labor Department identified safety standards that need to be met before resuming operations. The inspection followed a recent singular fatality at the mine, the first one in 18-1/2 years of Starcore’s record of zero fatalities in its mining operations at San Martin”.

ON FINANCING

  • Barksdale Resources Corp. granted stock options to certain directors, officers, employees and consultants of the company to acquire 5 M common shares (San Javier, Sonora).
  • Bear Creek Mining Corp. announced the drawn down of US$750 K in funds related to the promissory note issued to the company to Sandstorm Gold Ltd., and under which Sandstorm can elect convert the amounts drawn into common shares of Bear Creek. An aggregate of US$2.62 M has been drawn down under the additional credit for a total principal amount of US$21.64 M (Mercedes, Sonora).
  • Vizsla Royalties Corp. is now listing on the TSX Venture Exchange as a Tier 2 issuer and its shares are expected to commence trading on August 26, 2024 (Panuco, Sinaloa).
  • Guanajuato Silver Company Ltd. filed and received a receipt for a final short base prospectus that allows the company to offer up to US$65 M of common shares, debt securities, warrants, subscription receipts, share purchase contracts and units during the 25-months period that the prospectus is effective (El Cubo, Guananjuato).

ON RESOURCES AND DEVELOPMENT

  • Oroco Resources Corp. announced a revised preliminary economic assessment (PEA) and updated mineral resource estimate for the North and South zones of its Santo Tomas project in Sinaloa. The study envisages a NPV (8%) of US$2.64 B pre-tax and US$1.48 B post-tax, an internal rate of return of 30.3% pre-tax, and 22.2% post-tax, total LOM (life on mine) production of 4.8 B Lb Cu, a pre-tax payback of 2.9 years, post-tax payback of 3.8 years from first concentrate production. Estimated initial capital costs of US$1.1 B and sustaining and expansion capital costs at US$1.73 B. producing at cash cost US$1.54 per Lb Cu on by-product basis, with average CuEq grade of 0.51% on the first 7 years of production. The Santo Tomas deposit has 540.6 M tonnes @ 0.33% Cu, 0.008% Mo, 0.028 gpt Au, 2.1 gpt Ag as indicated resources containing 3.98 B Lb Cu, 95.4 M Lb Mo, 483.4 K Oz Au, 36.5 M Oz Ag and 530.8 M tonnes @ 0.31% Cu, 0.007% Mo, 0.023 gpt Au, 1.9 gpt Ag as inferred resources, containing 3.67 B Lb Cu, 84.4 M Lb Mo, 387.1 K Oz au, 33.2 M Oz Ag.
  • Vyzsla Silver Corp. provided an update on resource potential expansion potential and outline its exploration plans at its Panuco project in Sinaloa. The key exploration objectives for 2024 include 10,000 m of exploration drilling in the central-east area of the district, completing +5,000 m of resource expansion drilling in Copala Central, complete VTEM, airborne mag and radiometric surveys on 950 line-km, advance mapping coverage to 70% of the district and finish an updated resource estimate in Q4 2024. Exploration in the district central and east areas already has a handful of targets with outcropping silver mineralized veins. Two greenfields projects to explored include La Garra-Metates district, covering 16,962 ha, located 32 km NW from Panuco and San Enrique, adjacent to the south of Panuco and covering 10,667 ha. 

ON DEALS AND CORPORATE ISSUES

  • Barksdale Resources Corp. appointed Dr. Quinton Hennigh to its board of directors (San Javier, Sonora).
  • Ranchero Gold Corp. entered into a letter of intent (LOI) to sell its Mexican subsidiary Minera y Metalurgica Paika, S.A. de C.V. to an arm’s length party purchaser for nil consideration. The sale includes water rights and four mining concessions covering 16,876 ha on the Santa Daniela project, in Sonora, and a conditional payment of US$2.5 M that will offset liabilities in Paika of $3.55 M of land fee payments and accrued interest due, along with a potential finder’s fee related to the conditional payment.
  • Atacama Copper Corp. has changed its name to Fuerte Metals Corp., with its shares expected to commence trading under the new name on August 26, 2024 (Cristina, Chihuahua).

ON SOCIAL RESPONSIBILITY

  • Discovery Silver Corp. released its 2023 environmental, social and governance (ESG) report, highlighting purchases for $19.2 M in goods and services from Mexican businesses, $5.0 M paid in salaries and benefits to 69 local employees, of which 85% are local; $195 K of direct community investments and 21.1 GJ of renewable solar energy (Cordero, Chihuahua).

On the image below: Strong chlorite-epidote alteration in intrusive rock with two parallel quartz veinlets, one bearing molybdenite, HQ core. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the Second Week of July 2024

/ Gambusino Prospector / Leave a comment

By Jorge Cirett                                             

During the 28th week of the year (July 8th to July 14th, 2024), companies working in Mexico posted at least 25 press releases. One company informed on exploration advances on its property and nine companies provided operational results for Q2 2024. One company increased the size of a previous offering, one more was notified of its lack of compliance by the NYSE and one more established an at the market equity distribution program. Four companies released drilling results from their advanced properties, and one more completed a drilling program. Three companies announced management appointments, two the authorization for their merger and one provided information on payments to governments. ON MEXICO ISSUES, Mexico fell spectacularly on the Fraser’s ranking of mining competitiveness. Camimex pointed that exploration by the SGM just won’t work. Arcelor Mittal’s workers continue their illegal strike. ON EXPLORATION, In Sinaloa, Chesapeake Gold released drilling results on Lucy. ON MINING, Fortuna Mining, Endeavour Silver, Aura Minerals, Torex Gold, Gatos Silver, SilverCrest Metals, Orla Mining, GoGold Resources and Sierra Metals reported production results for Q2 2024. ON FINANCING, Golden Minerals announced it’s been notified by the NYSE American of its lack of compliance on three listing standards. Southern Silver Exploration increased its private placement to C$4.5 M. Kootenay Silver established an equity distribution program. ON RESOURCES AND DEVELOPMENT, Atacama Copper reported drilling results from Cristina. Silver Tiger Metals released results from PFS drilling at El Tigre. Vizsla Silver reported results from holes on the Copala resource area at its Panuco project. GoGold Resources updated on the FS for Los Ricos South. Xali Gold announced the completion of a drill program at El Oro Tailings. ON DEALS AND CORPORATE ISSUES, Bear Creek Mining, Luca Mining and Barksdale Resources announced appointments to the board. Argonaut Gold and Alamos Gold received clearance from authorities to complete their proposed arrangement. Fresnillo plc paid US$297.5 M dollars to Mexico during 2023 in taxes, royalties and concessions fees. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • Mexico fell 37 positions on the Fraser Institute index of mining competitiveness from 2022 to 2023, reflecting the difficulty to do business imposed in the new Mining Law.
  • Camimex (Cámara Minera de México) indicated that mining exploration by the government as stated by the new mining law is just not viable. According to the new mining law, the only player able to do exploration before an auction of mining concessions is the SGM (Servicio Geológico Mexicano), and that in 2022 the SGM had a budget of just US$2.4 million dollars, compared with the annual average in the last 12 years of US$633 million dollars invested by private mining companies.
  • Workers of Arcelor Mittal rejected a proposal by the company to end the more than a month and a half old illegal strike. The proposed agreement included more than US2,000 dollars per worker and 75% of the salaries not received during the strike, as well as an audit on the profits of the company for 2022 and 2023, to assess the correct application of the profit-sharing scheme in the law.  

ON EXPLORATION

  • Chesapeake Gold Corp. released results from the phase 2 drill program at Lucy, in Sinaloa. In total 939 m were drilled in 12 holes along the known mineralized corridor, 101 additional surface soil and rock samples were collected along the projection of the trend and 63 line-km of ground magnetics covering the entire property completed. Highlighted core length intervals comprise 24 m @ 1.43 gpt Au (including 9 m @ 2.29 gpt Au); 6 m @ 1.95 gpt Au; 6 m @ 5.21 gpt Au; 6 m @ 1.90 gpt Au; 20.5 m @ 1.75 gpt Au (including 12 m @ 2.82 gpt Au. The gold mineralized zone has been extended from 500 to 700 m of length, and the corridor remains open on strike and at depth. “… this expanded corridor continues to display retrograde quartz-calcite, iron oxides, sulphide veinlets and stockwork hosted within garnet and pyroxene skarn and hornfels with zones altered to actinolite and other silicates.”

ON MINING

  • Fortuna Mining Corp. reported production results for the second quarter of 2024, including figures from its Mexican operations. At San Jose, in Oaxaca, 176.2 K tonnes were milled at a rate of 1,980 tpd, grading 140 gpt Ag, 1.09 gpt Au, recovering 85.6% Ag, 85.5% Au, to produce 684.2 K Oz Ag, 5,269 Oz Au. “Management is currently evaluating its options of maintaining operations at the mine or putting the mine on care and maintenance, as Mineral Reserves are scheduled to be exhausted by year end.”
  • Endeavour Silver Corp. reported second quarter 2024 production of 1.31 M Oz Ag, 10,549 Oz Au (or 2.2 M Oz AgEq).  At Guanaceví in Durango, 112.9 K tonnes were processed at a rate of 1,241 tpd, grading 364 gpt Ag, 1.29 gpt Au, recovering 90.4% Ag, 90.4% Au, to produce 1.19 M Oz Ag, 4,243 Oz Au. At Bolañitos in Guanajuato, 106.1 K tonnes were processed at a rate of 1,166 tpd, grading 41 gpt Ag, 2.06 gpt Au, recovering 83.4% Ag, 89.6% Au, to recover 116.9 K Oz Ag, 6,306 Oz Au. “Local third-party feed continued to supplement Guanaceví mine production, totaling 15% of quarterly throughput. With current prices, management expects local third-party feed to remain above 10% of throughput going forward.”
  • Aura Minerals Inc. announced preliminary production results for Q2 2024, including figures from its Mexican operations. At Aranzazu, in Zacatecas, production was 6,175 Oz Au, 120.4 K Oz Ag, 8.93 M Lb Cu (or 24,692 Oz AuEq).
  • Torex Gold Resources Inc. reported Q2 2024 production at its Limón-Guajes mine in Guerrero. A total of 17.8 K tpd of ore were mined from open pits, 77.4 K tpd of waste were moved at a strip ratio of 4.3 and 2,145 tpd were mined from underground. Total plant throughput was 13,214 tpd, averaging 3.34 gpt Au, with a recovery of 90.5% Au, to produce 113,822 Oz Au in the period. “… the level of waste mined is expected to decline further through the balance of the year as the pits reach the end of their mine life mid-2025….”
  • Gatos Silver Inc. announced production results for the second quarter 2024. During the period 294.9 K tonnes were milled at a rate of 3,240 tpd, grading 0.29 gpt Au, 273 gpt Ag, 2.06% Pb, 4.55% Zn, recovering 48.8% Au, 88.9% Ag, 89.5% Pb, 64.6% Zn to produce 1,360 Oz Au, 2.30 M Oz Ag, 12.0 M Lb Pb, 19.1 M Lb Zn.
  • SilverCrest Metals Inc. provided interim operational results for the second quarter of 2024. During the period 100 K tonnes were mined, 110.6 K tonnes were milled at a rate of 1,216 tpd, averaging 4.36 gpt Au, 418 gpt Ag (or 765 gpt AgEq), recovering 98.6% Au, 98.3% Ag, to produce 15,303 Oz Au, 1.46 M Oz Ag (or 2.68 M Oz AgEq).
  • Orla Mining Ltd. released an interim operational update for the second quarter 2024. At the Camino Rojo Oxide mine 1.9 M tonnes were mined, 2.05 M tonnes of waste moved with a strip ratio of 1.08 and 1.93 M tonnes were stacked averaging 0.87 gpt Au to produce 33,206 Oz Au. At the end of the period Orla had cash of US$154.3 M and total debt of US$78.4 M, resulting in a net cash position of US$75.9 M.
  • GoGold Resources Inc. reported production for the quarter. At the Parral Tailing project, 2,436 Oz Au, 138.7 K Oz Ag, 148 tonnes Cu, 125 tonnes Zn were produced during the period ending June 30, 2024.
  • Sierra Metals Inc. reported second quarter 2024 production results. At Bolivar, in Chihuahua, 378.9 K tonnes were processed at a rate of 4,273 tpd, grading 0.38 gpt Au, 19.5 gpt Ag, 0.83% Cu, recovering 65.4% Au, 80.6% Ag, 89.8% Cu, to produce 3,005 Oz Au, 190 K Oz Ag, 6.15 M Lb Cu.

ON FINANCING

  • Golden Minerals Co. announced that the company has been notified by the NYSE American LLC that it was not in compliance with three of the continued listing standards. “The notification from the NYSE American has no immediate effect on the Company’s common stock or its business operations. The Company’s common stock will continue to be listed on the NYSE American under the symbol “AUMN” while it regains compliance with Sections 1003(a)(i), 1003(a)(ii) and 1003(a)(iii) of the Company Guide, subject to the Company’s compliance with other continued listing requirements” (Yoquivo, Chihuahua).
  • Southern Silver Exploration Corp. announced the increase of the previously announced $3.3 M private placement to $4.5 M (Cerro Las Minitas, Durango).
  • Kootenay Silver Inc. established an “at the market” equity distribution program, which will allow Kootenay to issue and sell to the public from time to time, at its discretion, common shares in the capital of Kootenay on the amount of up to C$5 M (Columba, Chihuahua).

ON RESOURCES AND DEVELOPMENT

  • Atacama Copper Corp. reported results from five holes of a 10,000 m drilling program at Cristina, in Chihuahua. Fifteen holes totalling 4,467 m of drilling of a 40-to-50-hole program have been reported. Highlighted true width intercepts comprise 20.50 m @ 1.56 gpt Au, 25 gpt Ag, 0.17% Cu, 0.3% Pb, 0.3% Zn (including 1.20 m @ 22.30 gpt Au, 184 gpt Ag, 1.42% Cu, 0.8% Pb, 0.9% Zn); 14.00 m @ 0.96 gpt Au, 39 gpt Ag, 0.13% Cu, 0.4% Pb, 0.7% Zn (including 2.90 m @ 2.78 gpt Au, 75 gpt Ag, 0.98% Cu, 0.7% Pb, 0.3% Zn); 20.00 m @ 0.43 gpt Au, 20 gpt Ag, 0.2% Pb; 0.6% Zn; 9.00 m @ 0.70 gpt Au, 33 gpt Ag, 0.15% Cu, 0.7% Pb, 2.1% Zn; 5.80 m @ 0.43 gpt Au, 12 gpt Ag, 0.1% Pb, 0.3% Zn. The goal of the program is to increase the size and the grade of the resource and demonstrate the underground potential at Cristina.
  • Silver Tiger Metals Inc. released results from the pre-feasibility study drilling program on El Tigre project in Sonora. Highlighted core length intervals comprise 18.20 m @ 0.53 gpt Au, 7 gpt Ag; 5.80 m @ 0.43 gpt Au, 328 gpt Ag (including 1.80 m @ 1.10 gpt Au, 1,041 gpt Ag); 56.80 m @ 0.62 gpt Au, 55 gpt Ag; 11.00 m @ 0.16 gpt Au, 128 gpt Ag; 72.00 m @ 0.62 gpt Au, 15 gpt Ag; 59.00 m @ 0.62 gpt Au, 20 gpt Ag; 11.00 m @ 1.18 gpt Au, 87 gpt Ag; 45.00 m @ 0.43 gpt Au, 11 gpt Ag. Silver Tiger aims to release a new mineral resource estimate by September 2024. This drilling program has extended mineralization “by 10 to 15%, to the footwall and hanging wall zones, as well as the higher-grade ‘Keel’ at PEA pit bottom associated with the El Tigre and SK Veins”, and converted a significant portion of inferred resources to the indicated category.
  • Vizsla Silver Corp. reported results from six holes targeting the Copala resource area at its Panuco project in Sinaloa. “The reported drilling, designed to infill near-surface Indicated Mineral Resources, continues to confirm high-grade continuity throughout Copala including new high-grade intercepts on the Copala 3 hanging-wall vein splay.” Highlighted true width intervals comprise 7.80 m @ 4.40 gpt Au, 788 gpt Ag (including 0.86 m @ 25.30 gpt Au, 5,010 gpt Ag); 5.25 m @ 6.58 gpt Au, 547 gpt Ag; 3.50 m @ 7.83 gpt Au, 1,617 gpt Ag; 2.68 m @ 7.47 gpt Au, 1,831 gpt Ag; 7.00 m @ 9.51 gpt Au, 1,898 gpt Ag (including 1.29 m @ 18.95 gpt Au, 3,430 gpt Ag).
  • GoGold Resources Inc. is advancing the definitive feasibility study at Los Ricos South project in Jalisco. The study to be released in September focus “… towards a larger underground mine with a much smaller open pit. We have applied for an underground permit as in our view this will be more likely to be obtained on a timely basis. We see the project having more than 10 years of underground mine life, followed by a smaller open pit than originally planned in our preliminary economic assessment. The need for an open pit permit at Los Ricos South has been effectively pushed into the future more than a decade from now.”
  • Xali Gold Corp. announced that the drilling program for metallurgical test work on the T Tailings project at El Oro, in Estado de Mexico, has been completed. The program was expanded from the 20 holes planned to 34 holes, averaging 20 m in depth. In a technical report from 2014, the tailings have an inferred resource of 1.27 M tonnes averaging 2.94 gpt Au, 75 gpt Ag, containing 119,900 Oz Au, 3.06 M Oz Ag.

ON DEALS AND CORPORATE ISSUES

  • Bear Creek Mining Corp. announced the appointment of Mr. Donald Mc Iver as Vice President Exploration and Geology. The company drew US$1.12 M from the Sandstorm Gold Ltd. Promissory Note. “As of the date of this news release, an aggregate of US$1,875,000 has been drawn down under the Additional Credit for a total principal amount of US$20,892,612.35 outstanding under the Sandstorm Promissory Note. A remaining amount of US$750,000 may be drawn down under the Additional Credit in monthly installments of up to US$375,000 until August 2024” (Mercedes, Sonora).
  • Luca Mining Corp. announced the appointment of Mr. Dan Barnholden as Chief Executive Officer, effective July 15, 2024. “Ramon Perez, who has served as interim CEO for the past 4 months, will return to his role as President and will work closely with Dan to optimize operations at Campo Morado and achieve commercial production at Tahuehueto.” (Campo Morado, Guerrero).
  • Argonaut Gold Inc. received the clearance decision from COFECE (Comisión Federal de Competencia Económica) and the final order of the Ontario Superior Court of Justice on the pending arrangement transaction between Argonaut and Alamos Gold Inc.  Under the arrangement Alamos will acquire all of the issued and outstanding shares of Argonaut (La Colorada, Sonora).
  • Barksdale Resources Corp. announced the appointment of Mr. Alan Roberts as VicePresident Exploration (San Javier, Sonora).
  • Fresnillo plc. provided an overview of the payments to governments made by Fresnillo plc in 2023. In Mexico the company paid US$255.6 M in taxes, US$0.62 M in royalties and US$41.3 M in licenses and concessions fees (Fresnillo, Saucito and Juanicipio, Zacatecas).

ON SOCIAL RESPONSIBILITY

  • Aura Minerals Inc. announced the 4th annual sustainability report with its achievements in advancing safety, responsibility, sustainability and innovation.

On the image below: Oxidized shear zone on intrusive rocks in a Sonoran Desert project, HQ core. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the Fifth Week of May 2024

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By Jorge Cirett

During the 22nd week of the year (May 27th to June 2nd,2024), companies working in Mexico posted at least 29 press releases. One company informed of drilling on its property and six companies released financial results for Q1 2024. Two companies announced the opening/closing of financing rounds for C$10.28 M and one filed a prospectus to raise up to US$250 M. Two companies informed on drilling results from their advanced projects, one on the approval of key mining permits, another on an updated technical report and one more a clarification on a previous news release. Two companies reported on held AGM’s, another one on the date for a merger-voting AGM, one on plans for a copper spinout, one on an annual report and one more on a board member retirement. ON MEXICO ISSUES, presidential polls in Mexico are to define a centralized power government or a checks and balances political system. The mining industry will be strongly affected if the officialism candidate wins. Nearshoring and EV’s present an opportunity to copper producing Sonora. The New Mining Law has stalled the investment of more than US$4.5 billion in the country. ON EXPLORATION, In Sonora, Tocvan Ventures informed on drilling progress at Pilar. ON MINING, Impact Silver, Orogen Royalties, Bear Creek Mining, Minera Alamos, Santacruz Silver Mining and Luca Mining presented financial/operational results for Q1 2024. ON FINANCING, Impact Silver increased again its non-brokered private placement to C$10.2 M, Sailfish and Alamos Gold declared quarterly dividends. Inomin raised $80 K on the first tranche of financing. Mag Silver filed the base shelf prospectus to raise up to C$250 M in 25 months. ON RESOURCES AND DEVELOPMENT, Silver Storm and Prime Minig released drilling results from La Parrilla, in Durango, and Los Reyes, in Sinaloa, respectively. ON DEALS AND CORPORATE ISSUES, Argonaut Gold is to held a special meeting of shareholders to vote on the merger with Alamos Gold. First Majestic Silver released its 2023 annual report. Avino Silver and Guanajuato Silver released AGMS’s results. Minera Alamos informed on its purpose to create a copper developer/producer spinout in Central Sonora. Capstone Copper announced the retirement of Bob Gallagher. ON SOCIAL RESPONSIBILITY, First Majestic Silver and Fortuna Silver Mines published their 2023 ESG reports.

ON MEXICO ISSUES

  • This Sunday June 2nd presidential polls are to be held in Mexico, same that will define the bearing the country is to follow in the next six years and probably beyond that. At stake are the centralized government system with unrestricted power to the presidency sought by the current incumbent Andres Manuel Lopez Obrador, and the checks and balances system between the different government branches (executive, legislative and judicial) sought by the coalition opposition parties. Besides the obvious influence on the economy, if the officialism party´s Claudia Sheinbaum candidate wins, expect a tight grip on the mining industry from the open supporter of socialist economies, like Cuba and Venezuela.
  • Nearshoring and electrical vehicles present an opportunity for copper producing Sonora, according to David Ramos Félix, president of the local AIMMGM chapter in the State that produces more than 70% of the red metal in the country
  • Restrictions brought by the new Mining Law approved by Fast Track procedures in May of 2023 have delayed the investment of more than US$4.5 billion, according to Karen Flores, president of the Cámara Minera de México (CAMIMEX). The freezing of at least 220 environmental permits is hindering the investments that could generate employment to close to 50 thousand families, with salaries in the metallic mining sector that are 85% above the national average.

ON EXPLORATION

  • Tocvan Ventures Corp. informed 2,200 m have been completed on the reverse circulation (RC) drill program at its Pilar property in Sonora. Results for nine holes have been released so far.

ON MINING

  • Impact Silver Corp. announced financial and operating results for Q1 2024. The company reported revenue of $4.3 M from the Guadalupe mine in Estado de Mexico and $1 M from the start-up operations at Plomosas in Chihuahua. There was a net loss during the period of $3.1 M, primarily on upgrading facilities at the Plomosas mine. At the Zacualpan/Guadalupe mine in Estado de Mexico 31.7 K tonnes were milled @ 161 gpt AgEq. The Plomosas mine continued gradual start-up of operations, processing 3.6 K tonnes @ 15.3% Zn. The mine is expected to reach design capacity of 200 tpd later in 2024.
  • Orogen Royalties Inc. reported Q1 results, including $1.48 M in royalty revenue generated from First Majestic’s Ermitaño mine in Sonora, representing 508 Oz AuEq. “During the current quarter, the mill processed 224,394 tonnes of ore compared to 233,601 tonnes processed last quarter. Average silver and gold head grades during the current quarter were 72 grams per tonne (“g/t”) and 3.16 g/t, respectively, compared to average silver and gold head grades of 106 g/t and 3.88 g/t, respectively, of the previous quarter. Silver and gold recoveries averaged 69% and 95%, respectively, compared to recoveries of 73% and 96% from the previous quarter”.
  • Bear Creek Mining Corp. reported interim consolidated financial results for Q1 2024. During the period, 106.4 K tonnes were mined at the Mercedes mine in Sonora, averaging 3.83 gpt Au, 109.3 K tonnes milled averaging 3.69 gpt Au, recovering 94% Au to produce 12,228 Oz Au, 44 K Oz Ag at cash cost $1,183 per Oz Au and an AISC of $1,588 per Oz Au. Total revenue in the period was $27.5 K M. “Updates to estimates of mineral reserves and mineral resources are tentatively expected before year end, pending completion of the first phase of the exploration and infill drilling campaign”.
  • Minera Alamos Inc. provided select financial highlights from its Q1 2024 and an operational update for the first five months of the year. Updated plans call for 20 K Oz Au averaging 0.63 gpt Au and mined at a 1.6:1 ratio and staked over a 12-month period. Further stockpiled 4.5 K Oz Au @ 1.0 gpt Au are to be processed during the same period. Mining and stacking operations are expected to commence in June and continue through H2 2024 and H1 2025. Total gold recovered and sold during the first quarter was 907 Oz Au, with inventory on the leach pad of 5,383 Oz Au. Cash and cash equivalents at the end of the period was $11.8 M, with a positive working capital of $18.2 M.
  • Santacruz Silver Mining Ltd. reported its financial and operating results for the first quarter 2024, including figures from its operations in Mexico. At Zimapan, in Hidalgo, 205.4 K tonnes were processed @ 82 gpt Ag, 0.29% Cu, 0.83% Pb, 2.29% Zn, recovering 74% Ag, 43% Cu, 79% Pb, 77% Zn, to produce 399.9 K Oz Ag, 256 tonnes Cu, 1,352 tonnes Pb, 3,643 tonnes Zn. During the period the company had US$52.6 M in revenue, 463 K in gross profit, cash and cash equivalents of US$4 M and working capital of US$7.1 M.
  • Luca Mining Corp. announced financial results for Q1 2024. During the period the company produced 4,297 Oz Au, 207.5 K Oz Ag, 791 tonnes Cu, 661 tonnes Pb, 3,068 tonnes Zn. The company achieved its first positive operating earnings with C$4.8 M in operating income and C$7.3 M in net income. Cash flow was C$4 M, with an AISC of US$1,325 and US$1,690 per Oz AuEq, expected to decrease at Tahuehueto and Campo Morado respectively, as ramp up production continues with the completion of construction at the former and completion of the improvement project at the latter (Tahuehueto, Durango; Campo Morado, Guerrero).

ON FINANCING

  • Impact Silver Corp. is amending and increasing its previously announced non-brokered private placement from C$8.2 M to C$10.2 M (Plomosas, Chihuahua).
  • Sailfish Royalty Corp. declared the second quarterly dividend for 2024, in the amount of US$0.0125 per common share (Gavilanes, Durango).
  • Alamos Gold Inc. declared a quarterly dividend of US$0.025 per common share (Mulatos, Sonora).
  • Inomin Mines Inc. announced the closing of the first tranche of its non-brokered private placement for gross proceeds of $80K (La Gitana, Oaxaca).
  • Mag Silver Corp. obtained receipt for the final short form base shelf prospectus filed with the securities commissions in all Canada and filed a registration statement with the United States Securities and Exchange Commission (SEC). The final shelf prospectus and registration statement will allow the company to offer up to US$250 M in common shares during the 25-month period of validity (Juanicipio, Zacatecas).  

ON RESOURCES AND DEVELOPMENT

  • Silver Storm Mining Ltd. announced further results from 3,039 m in 23 holes of its diamond drill program at La Parrilla mine in Durango. The results are from the Rosario mine, underneath and in proximity to previously mined stopes. The Rosario zone is “characterized by a sulphide-bearing quartz-carbonate vein hosted within a fault zone that extend down dip for 900 m, with a strike length of 2 km and true widths of up to 14 m”. Highlighted core length results comprise 3.84 m @ 73 gpt Ag, 2.2% Pb, 5.4% Zn (including 1.19 m @ 0.15 gpt Au, 123 gpt Ag, 3.7% Pb, 11.3% Zn); 4.83 m @ 0.16 gpt Au, 113 gpt Ag, 0.2% Cu, 1.4% Pb, 0.7% Zn; 5.23 m @ 0.25 gpt Au, 70 gpt Ag, 1.6% Pb, 1.8% Zn; 2.50 m @ 0.64 gpt Au, 68 gpt Ag, 0.6% Pb; 4.54 m @ 176 gpt Ag, 0.2% Pb (including 1.97 m @ 0.09 gpt Au, 176 gpt Ag, 0.2% Pb); 0.35 m @ 842 gpt Ag, 0.94% Cu, 24.8% Pb, 10.1% Zn; 3.91 m @ 0.38 gpt Au, 501 gpt Ag, 1.2% Pb, 1.2% Zn; 3.52 m @ 0.11 gpt Au, 48 gpt Ag, 2.1% Pb, 2.4% Zn; 1.47 m @ 469 gpt Ag, 1.89% Cu, 5.0% Pb, 2.7% Zn; 5.9 m @ 225 gpt Ag, 0.9% Pb, 0.7% Zn; 3.20 m @ 0.47 gpt Au, 111 gpt Ag, 1.5% Pb, 2.0% Zn; 6.25 m @ 532 gpt Ag, 18.1% Pb, 5.4% Zn.
  • Prime Mining Corp. reported expansion drilling results from the Guadalupe East area at Los Reyes project, in Sinaloa. Highlighted true width intercepts comprise 3.5 m @ 2.67 gpt Au, 327 gpt Ag; 1.1 m @ 4.06 gpt Au, 664 gpt Ag; 0.3 m @ 6.88 gpt Au, 5 gpt Ag; 1.5 m @ 2.38 gpt Au, 419 gpt Ag; 1.0 m @ 3.71 gpt Au, 475 gpt Ag; 0.7 m @ 20.50 gpt Au, 2,620 gpt Ag; and core length intervals comprising 2.4 m @ 1.29 gpt Au, 180 gpt Ag (including 1.3 m @ 2.13 gpt Au, 302 gpt Ag). “The target of this drilling at Guadalupe East was high-grade antithetic veins stepping out to the west. Antithetic veins are footwall and hanging wall splays that intersect the main Estaca vein at Guadalupe East”.
  • Sierra Madre Gold and Silver Ltd. announced the approval by SEMARNAT (Environmental Agency) of the modifications to the existing operating permit for the Guitarra mine and mill complex in Estado de Mexico. The permit allows for dry stack tailings deposition at the active tailings facility site, construction of a tailings filter plant, paste backfill using tailings in the underground mine and 58 surface drilling pad locations.
  • Argonaut Gold Inc. filed an updated technical report for the San Agustin property in Durango, which commenced operations in 2017. Reports highlights include gold production of 89 K Oz Au from April 2024 to 2026 at cash cost US$1,702 per Oz Au and a pre-tax and after-tax net present value (5%) of US$30M.
  • Luca Mining Corp. issued a clarification on its May 21, 2024 news release regarding the high-grade gold mineralization over significant widths at the Tahuehueto mine in Durango. “The mineralization occurs in shoots branching off the main Creston vein at Underground Level 23. Creston is one is one of two main structures currently being mined. Regular geological mapping, as part of mining activities, and channel sampling at this level confirmed the presence of breccia ore shoots up to 20 meters wide”. Channel sampling of 494 channel samples on Level 23 average 3.30 gpt Au, 27 gpt Ag, 0.22% Cu, 0.8% Pb, 1.4% Zn,

ON DEALS AND CORPORATE ISSUES

  • Argonaut Gold Inc. has filed its management information circular for its annual general and special meeting of the holders of common shares to be held on June 28, 2024. At the meeting Argonaut Shareholders will be asked to vote on the statutory plan of arrangement under which Argonaut will become a wholly-owned subsidiary of Alamos Gold Inc. (La Colorada, Sonora).
  • First Majestic Silver Corp. released its 2023 Annual report titled “20 Years. The Silver Evolution”. The report covers the company’s “vision and mission, its values, its commitment to achieving its goals, and its 20-year evolution to becoming one of the world’s largest silver producers”.
  • Avino Silver & Gold Mines Ltd. reported voting results from its annual general meeting (AGM) held on May 30. 2024. The company also announced the retirement of Jasman Yee from the board of directors (Avino, Durango).
  • Guanajuato Silver Company Ltd. announced its 2024 annual general meeting (AGM) is to be held on June 28, 2024 (El Cubo, Guanajuato).
  • Minera Alamos Inc. informed its plans to advance the creation of a “separate copper developer/producer focused on low capital intensity copper development projects”. The company considers the combination of Los Verdes and Suaqui Verde projects allow for further consolidation of similar assets in the region.
  • Capstone Copper Corp. announced Mr. Robert Gallagher has retired from the board of the directors (Cozamin, Zacatecas).

ON SOCIAL RESPONSIBILITY

  • First Majestic Silver Corp. released its 2023 Sustainability Report summarizing the company’s environmental, social and governance (ESG). Highlighted in the report are the safety performance, diversity and inclusion, carbon reduction, community involvement, ESG recognition and community investments (San Dimas, Durango).
  • Fortuna Silver Mines Inc. published its sixth annual sustainability report detailing the company’s performance on key environmental, social and governance (ESG) indicators during 2023 (San Jose, Oaxaca).

On the image below: Potassic feldspar alteration on rim of dark veinlet on intrusive rock in HQ core (6.3 cm across) from a project in the Sonoran Desert. Picture by Jorge Cirett.