Technical Report NI 43-101

The Mining and Exploration News in Mexico: Highlights on the Fourth Week of March, 2023.

/ gambusinoprospectormexico / Leave a comment

Garnetite (grossular garnet skarn)

By Miguel A Heredia

During the 12th week of the year (March 20th to March 26th, 2023), at least 17 press releases were announced by companies working in Mexico, and 1 news published by the media with eight reporting resources and developments of their properties, five disclosing deals and corporate issues, two communicating production and financial results, one commenting on Mexican Issues, one informing on exploration results, and one discussing social issues. ON MEXICO ISSUES, Torex, Vizsla, and Discovery Silver reported the best drilling intercepts in Mexico on the fourth week of March, 2023.  ON EXPLORATION, In Zacatecas, Radius announced the discovery and acquisition of a new gold property within the Fresnillo mining district. ON MINING, Golden Minerals announced full year 2022 production and financial results. Impact reported full year 2022 production and financial results from its Zacualpan mining district in the State of Mexico.  ON FINANCING, no relevant news. ON RESOURCES AND DEVELOPMENT, Golden Minerals presented results of an initial Mineral Resource Estimate prepared for its Yoquivo project in Chihuahua.  Vizsla announced results from seven holes drilled at its flagship Panuco project in Sinaloa. Fortuna Silver reported updated Mineral Reserve and Mineral Resource Estimates for its San Jose Mine in Oaxaca. Discovery Silver announced results from the Feasibility Study (FS) drill holes on its flagship Cordero property in Chihuahua.  Torex reported encouraging results from the 2022 drilling program at EPO deposit within its Media Luna property in Guerrero. GR Silver announced significant updated Mineral Resource Estimate for its Plomosas project in Sinaloa. Southern Silver updated the Mineral Resource Estimate on its Cerro Las Minitas project in Durango. ON DEALS AND CORPORATE ISSUES, Capitan Mining announced name change to Capitan Silver Corp. (Cruz de Plata project, Durango). Radius entered into an option agreement to acquire 100% of the 200 hectares Tropico property within the Fresnillo mining district in Zacatecas. Heliostar announced that it returned to trading on the TSX Venture exchange (Ana Paula, Guerrero). Sierra Madre announced that it received approval for the acquisition of the La Guitarra property in the State of Mexico. Pan American and Yamana provided an update on the status of Pan American´s proposed acquisition of all the issued and outstanding common shares of Yamana. ON SOCIAL RESPONSIBILITY, Industrias Peñoles and Fresnillo plc, implemented a responsible water management policy in order to reduce their footprint water.

ON MEXICO ISSUE

  • Torex Gold Resources Inc., Vizsla Silver Corp., and Discovery Silver Corp., reported the best drilling intercepts in Mexico on the fourth week of March, 2023. Details are shown in the table below:

ON EXPLORATION

  • Radius Gold Inc., announced the discovery and acquisition of a new gold property within the Fresnillo mining district in Zacatecas. El Tropico project is located 30km NW of Fresnillo city and consists of hot spring type sinter and breccia pipe. Radius identified an elliptical zone of intensely silicified hydrothermal breccias approximately 450m by 250m in a flat zone and hosted in finely bedded siltstone and dirty limestone interpreted to be part of the Proaño Group which host the major Fresnillo deposit. Twenty eight rock chip samples were collected on the property with encouraging results. Au assays ranged from 0.02 g/t to 0.88 g/t, with an average of 0.28 g/t; Hg values are very high with many samples exceeding >100 ppm (the upper limit of detection); Sb values are very anomalous and ranged from 64 ppm to 1,135 ppm; As values ranged from 8 ppm to 854 ppm; and Ag values ranged from 0.6 g/t to 5.6 g/t.

ON MINING

  • Golden Minerals Company announced full year 2022 production and financial results from its Rodeo project in Durango. It produced 11,982 Oz Au and 32,179 Oz Ag at average realized sales prices of USD $1,805 and USDS $21.93 per Oz respectively. Total cash costs were USD $1,362 per payable Oz Au. Golden reported revenue of USD $23.3M; net operating margin of USD $5.7M; cash and equivalents balance as of December 31, 2022 of USD $4M; exploration expenses of USD $9.6M; and a net loss of USD 9.9M.
  • Impact Silver Corp., reported full year 2022 production and financial results from its Zacualpan mining district in the State of Mexico. The company processed 152,862 tonnes at a direct production cost of USD $97.49 per ton, to produce 633K Oz Ag. Impact sold 644.8K Oz Ag, and reported revenues of USD $16.3M; mine operating earnings before amortization and depletion of USD $1.2M; cash flow loss of USD $1.8M; balance sheet of USD $15.3M in cash and working capital of USD $16.4M.  The company has not long-term debt.

ON FINANCING

  • No relevant news.

ON RESOURCES AND DEVELOPMENT

  • Golden Minerals Company filed a NI 43-101 Technical Report for its Yoquivo project in Chihuahua in which presented results of an initial Mineral Resource Estimate (MRE).  The Yoquivo MRE include inferred resources for 937K tonnes with average grades of 410 g/t Ag and 2.1 g/t Au (570 g/t AgEq) for a total of 12.3M Oz Ag and 64K Oz Au (17.23M Oz AgEq) contained. The resource was not initially classified beyond Inferred. The company believes that a significant portion will be updated to Measured & Indicated in the next resource update.
  • Vizsla Silver Corp., announced results from seven holes drilled at its flagship Panuco project in Sinaloa. Drilling highlights (true widths reported) from the La Luisa Vein located 700m west of the Napoleon Vein include hole NP-22-332 with 2,699 g/t Ag, 24.99 g/t Au, 0.2% Pb, and 0.6% Zn (4,227 g/t AgEq) over 2.30m, including 11,502 g/t Ag, 120.5 g/t Au, 0.8% Pb, and 2.6% Zn (18,950 g/t AgEq) over 0.47m; hole NP-22-358 with 257 g/t Ag, 11.13 g/t Au, 0.4% Pb, and 2% Zn (1,076 g/t AgEq) over 5.6m, including 659 g/t Ag, 44.22 g/t Au, 0.5% Pb, and 2.3% Zn (3,698 g/t AgEq) over 1.1m, including 221 g/t Ag, 22.68 g/t Au, 0.3% Pb, and 0.5% Zn (1,761 g/t AgEq) over 0.27m, plus 174 g/t Ag, 0.77 g/t Au, 0.4% Pb, and 0.5% Zn (243 g/t AgEq) over 1.16m, plus 226 g/t Ag, 1.45 g/t Au, 1.2% Pb, and 8% Zn (633 g/t AgEq) over 1.27m; and hole NP-22-345 with 1,286 g/t Ag, 9.76 g/t Au, 0.9% Pb, and 2.3% Zn (1,967 g/t AgEq) over 2.5m, including 2,982 g/t Ag, 24.01 g/t Au, 1.8% Pb, and 5% Zn (4,630 g/t AgEq) over 0.99m, plus 42 g/t Ag, 1.55 g/t Au, 0.5% Pb, and 2.1% Zn (237 g/t AgEq) over 1.48m, plus 42 g/t Ag, 4.05 g/t Au, 0.2% Pb, and 2.9% Zn (426 g/t AgEq) over 2.53 m, plus 65 g/t Ag, 2.21 g/t Au, 0.1% Pb, and 2.6% Zn (306 g/t AgEq) over 1.70m. These results expand the high-grade footprint at La Luisa by over approximately 150m down dip from previously reported drill holes.
  • Fortuna Silver Mines Inc., reported updated Mineral Reserve and Mineral Resource Estimates as of December 31, 2022 for its San Jose Mine in Oaxaca. The company estimated Proven + Probable Reserves of 2.14M tonnes with grades of 172 g/t Ag and 1.16 g/t Au for a total of 11.8M Oz Ag and 80K Oz Au contained. It also reported Measured and Indicated Mineral Resources of 911K tonnes with grades of 109 g/t Ag and 0.72 g/t Au for a total of 3.2M Oz Ag and 21K Oz Au contained, and Inferred Resources of 2.52M tonnes with grades of 118 g/t Ag and 0.83 g/t Au for a total of 9.6M Oz Ag and 67K Oz Au contained. (Mineral Resources are exclusive of Mineral Reserves).
  • Discovery Silver Corp., announced results from the Feasibility Study (FS) drill holes on its flagship Cordero property in Chihuahua. Drilling highlights include hole C22-677 located 185m within the resource pit in the South Corridor with 77 g/t Ag, 0.16 g/t Au, 0.7% Pb, and 1.3% Zn (158 g/t AgEq) over 31.7m, plus 124 g/t Ag, 0.09 g/t Au, 1.2% Pb, and 1.9% Zn (241 g/t AgEq) over 38.5m; hole C22-687, toward the bottom and beneath the reserves pit in an area previously modeled as waste with 14 g/t Ag, 0.09 g/t Au, 0.2% Pb, and 1.3% Zn (75 g/t AgEq) over 50.3m, plus 35 g/t Ag, 0.06 g/t Au, 0.7% Pb, and 1.7% Zn (126 g/t AgEq) over 35.5m, plus 25 g/t Ag, 0.06 g/t Au, 0.6% Pb, and 2.2% Zn (133 g/t AgEq) over 27.4m; and hole C22-671 located approximately 1.5km northeast of the reserves pit with 137 g/t Ag, 0.05 g/t Au, 3.1% Pb, and 3.5% Zn (370 g/t AgEq) over 14.8m, plus 55 g/t Ag, 0.04 g/t Au, 0.9% Pb, and 1.5% Zn (141 g/t AgEq) over 23.1m. The FS drilling consisted of 30 drill holes and was focused on two key areas: 1) expansion of reserves within and beneath the Pre-Feasibility Study open pit and 2) upgrading and expansion of the resource in the far northeast of the deposit. The drilling results will be incorporated in a FS in conjunction with a resource update planned for the first half of 2024.
  • Torex Gold Resources Inc., reported encouraging results from the 2022 drilling program at EPO deposit within its Media Luna property in Guerrero. Drilling highlights include hole ML22-900D with 12.25 g/t Au, 72 g/t Ag, and 3.59% Cu (18.90 g/t AuEq) over 32.87m; hole ML22-924D with 5.32 g/t Au, 150 g/t Ag, and 5.77% Cu (16.38 g/t AuEq) over 17.23m, including 99.52 g/t Au, 91 g/t Ag, and 4.42% Cu (107.73 g/t AuEq) over 4.28m; hole ML22-886D with 4.93 g/t Au, 76 g/t Ag, and 3.11% Cu (10.83 g/t AuEq) over 35.05m; hole ML22-927 with 9.11 g/t Au, 11 g/t Ag, and 0.31% Cu (9.75 g/t AuEq) over 17.35m, plus 5.99 g/t Au, 21 g/t Ag, and 0.67% Cu (7.31 g/t AuEq) over 42.02m; hole ML22-926D with 1.35 g/t Au, 81 g/t Ag, and 3.86% Cu (8.54 g/t AuEq) over 32.1m; hole ML22-925D with 1.19 g/t Au, 46 g/t Ag, and 2.12% Cu (5.16 g/t AuEq) over 28.46m, plus 8.51 g/t Au, 137 g/t Ag, and 5.78% Cu (19.44 g/t AuEq) over 5.09m; hole ML22-909A with 1.71 g/t Au, 70 g/t Ag, and 2.88% Cu (7.17 g/t AuEq) over 14.78m, plus 2.1 g/t Au, 58 g/t Ag, and 2.82% Cu (7.33 g/t AuEq) over 18.34m; hole ML22-919D with 6.82 g/t Au, 35 g/t Ag, and 1.46% Cu (9.58 g/t AuEq) over 6.05m, plus 8.04 g/t Au, 11 g/t Ag, and 0.78% Cu (9.43 g/t AuEq) over 8.47m; hole ML22-815D with 8.58 g/t Au, 8 g/t Ag, and 0.41% Cu (9.33 g/t AuEq) over 14.71m; hole ML22-912D with 4.23 g/t Au, 8.21 g/t Ag, and 0.08% Cu (4.45 g/t AuEq) over 18.77m; and hole ML22-920A with 12.47 g/t Au, 16 g/t Ag, and 0.19% Cu (12.96 g/t AuEq) over 4.31m. The company informed that the drilling results were very encouraging and is expected to achieve the target of upgrading half of the current inferred resources to the indicated category. Torex is optimistic about the potential to further increase the size of EPO as the deposit remains open to the north, south, and west.
  • GR Silver Mining Ltd., announced significant updated Mineral Resource Estimate for its Plomosas project in Sinaloa. The company reported that there was an increase of 108% in Indicated Resources from 46M Oz AgEq to 97M Oz AgEq; 72% increase in Indicated Resources from 32M Oz Ag to 55M Oz Ag; 61% increase in Inferred Resources from 33M Oz AgEq to 53M Oz AgEq; 20% increase in Inferred Resources from 18M Oz Ag to 22M Oz Ag; 44% increase in average Indicated Mineral Resource grade from 143 g/t Ag to 206 g/t AgEq; and 65% increase in average Inferred Mineral Resource grade from 112 g/t Ag to 115 g/t Ag. At San Marcial, there was an increase of 80% in Indicated Mineral Resources from 36M Oz AgEq to 65M Oz AgEq; and a 65% increase in Inferred Mineral Resources from 12M Oz AgEq to 20M Oz AgEq. GR Silver reported Indicated Mineral Resources of 9.7M tonnes at 209 g/t AgEq (148 g/t Ag), and Inferred Mineral Resources of 3M tonnes at 200 g/t AgEq (145 g/t Ag). 71% of the value of the San Marcial Resource Estimate is comprised of Ag, and 91% of the 65M Oz AgEq San Marcial Indicated Resources are potentially amenable to open pit extraction. At Plomosas, there was an increase of 137% in the Indicated Mineral Resource tonnage; 260% increase in the Indicated Mineral Resource from 9M Oz AgEq to31M Oz AgEq; Ag and AgEq grade increased by 30% and 52% respectively; 20% of the total Indicated Mineral Resource is comprised of Ag, and 26% of the total Inferred Mineral Resource is comprised of Ag. It means that 46% of the Resource Estimate at Plomosas mine area is comprised of precious metals.
  • Southern Silver Exploration Corp., updated the Mineral Resource Estimate (MRE) on its Cerro Las Minitas project in Durango. The updated MRE significantly expanded sulphide resources in the La Bocona deposit. The newly modelled mineral resources represent an approximate 63% increase in the size of the La Bocona deposit (on an AgEq basis) and an overall 4.5% increase in the mineral resources of the entire project. The company reported Indicated Mineral Resources of 12.5M tonnes at grades of 106 g/t Ag, 0.07 g/t Au, 0.2% Cu, 1.3% Pb, and 3.3% Zn (349 g/t AgEq or 8.5% ZnEq) to contain 42.7M Oz Ag, 29K Oz Au, 46M Lb Cu, 364M Lb Pb, and 903M Lb Zn (140M Oz AgEq or 2,300M Lb ZnEq), and Inferred Mineral Resources of 21M tonnes at grades of 118 g/t Ag, 0.1 g/t Au, 0.2% Cu, 1.2% Pb, and 2.2% Zn (311 g/t AgEq or 7.6% ZnEq) to contain 80M Oz Ag, 85K Oz Au, 101M Lb Cu, 571M Lb Pb, and 1,029M Lb Zn to contain 210M Oz AgEq or 3,500M Lb ZnEq. “The new MRE incorporates results from 26 additional drill holes totalling 11,801.5m which tested the north-western extension the La Bocona deposit. Mineralization was also identified in several holes specifically along the northern margin of the central intrusion that were not incorporated into the new resource update and with further drilling, represent additional expansion opportunities”.

ON DEALS AND CORPORATE ISSUES

  • Capitan Mining Inc., announced name change to Capitan Silver Corp. Capitan Silver will continue to trade under the same symbol ‘CAPT’ on the TSX Venture Exchange and the number of shares outstanding will not change (Cruz de Plata project, Durango).
  • Radius Gold Inc., entered into an option agreement to acquire 100% of the 200 hectares Tropico property within the Fresnillo mining district in Zacatecas. Terms of the option include a payment on signing of USD $200K (completed); a further USD $200K payment which can be paid in 6 monthly installments over a period of 42 months, starting with USD $25K at month 12 from signing in order to maintain the property option. At month 48, Radius can acquire 100% of the property for USD $5M. An additional milestone payment of USD $5M is conditional on delivering a compliant feasibility study or at the start of mine construction.  A further USD $3M to be paid if reserves exceed 2M Oz AuEq (Au + Ag ounces). If Radius does not complete payment of the milestone USD $5M within 8 years of signing, the property would return 100% to original owners.
  • Heliostar Metals Limited announced that it returned to trading on the TSX Venture exchange. “The Company can now submit the required documentation to return to trade on the OTCQX and will provide an update once the timeline is clear” (Ana Paula, Guerrero).
  • Sierra Madre Gold and Silver Ltd., announced that it received approval from the Federal Economic Competition Commission (COFECE), the Mexico´s antitrust agency for the acquisition of the La Guitarra property in the State of Mexico.  With the receipt of this approval, closing of the acquisition is expected to take place on March 30,2023, followed by trade resumption of Sierra Madre shares shortly thereafter.
  • Pan American Silver Corp., and Yamana Gold Inc., provided an update on the status of Pan American´s proposed acquisition of all the issued and outstanding common shares of Yamana. Both companies informed that the Mexican Federal Economic Competition Commission approved the Pan American arrangement with Yamana and Agnico Eagle Mines Limited.  All required regulatory, shareholders and court approvals, including the finall court order, have now been received and the arrangement is anticipated to be completed on or about March 31, 2023.

ON SOCIAL RESPONSIBILITY

  • Industriales Peñoles S.A.B. de C.V. and Fresnillo plc, implemented a responsible water management policy in order to reduce their footprint water. Both companies have proposed three guiding principles: resource efficiency, collaboration with other actors and transparency. Thus, Industrias Peñoles and Fresnillo plc reiterated their commitment to respect the human right to access to safe drinking water.

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

On the picture above, a garnetite (grossular garnet skarn) in a prospect in Tamaulipas, Mexico.  Photo by Miguel A Heredia.

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

/ Gambusino Prospector / Leave a comment

By Jorge Cirett

During the 7th week of the year (February 13th to February 19th, 2023), 13 companies working in Mexico released news on their properties. One company informed on a new exploration model for its projects. Two companies informed on Q4 2022 production and 2023 guidance. One company closed a first tranche on a financing round, while one other closed the previously announced private placement and one more granted shares and stock options to board members. One company filed a PFS on its project and one more updated on the resource estimate for one of its properties. Two companies informed on drilling results and work on their advanced properties. Two companies informed they have earned 50% interest in a project, and one other received notice of claims totaling US$19.7 M. ON MEXICO ISSUES, The Mexican president continues to assert his power by claiming that all lithium reserves will pass to a government’s company. The Sonora State Economy Secretary vigorously backed the importance of the mining industry in the State. ON EXPLORATION, in Coahuila, Southern Empire Resources claims mineralization at its properties in Durango might be of Carlin style. ON MINING, Gold Resource and Capstone Copper released Q4 2022 production or/and financial production reports and guidance for 2023. ON FINANCING, Reyna Silver closed the first tranche of its private placement (C$5 M), Mag Silver completed its bought deal private placement (C$23 M) and Orogen Royalties granted shares and stock options to independent board members. ON RESOURCES AND DEVELOPMENT, Discovery Silver filed the PFS on the Cordero project in Chihuahua. Vizsla Silver reported drilling results at Panuco, in Sinaloa. Avino Silver updated the mineral resource estimate for all deposits at its Avino property in Durango. Impact Silver released drilling results from the Aurora 2 zone at its Capire project in Guerrero. ON DEALS AND CORPORATE ISSUES, Silver Spruce Resources and Colibri Resource earned 50% ownership in the Diamante property in Sonora. Magna Gold received notices on claims totaling $19.7 M. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • The Mexican president, Andrés M. López Obrador announced on one of its daily propaganda conferences: “I am to sign the decree to forward the lithium concession, all the reserves, to the Energy Secretariat”. In April 2022 the government declared lithium as a public utility mineral, and its exploitation to be only possible under the public enterprise Litio para México.
  • Margarita Vélez Rocha, the Sonora Economy Secretary, recognized the importance of the mining sector in the State, pointing that it directly employs more than 26 thousand workers and more than 120 thousand indirectly, with 39 municipalities having mining activities and 23 on which it is the main economic activity.

ON EXPLORATION

  • Southern Empire Resources Corp. announced that synchrotron radiation micro-X-ray fluorescence mineralogical studies of drill core samples from its Pedro project in Durango reveal mineralogical similarities to deposits of the Carlin belt in Nevada. Gold mineralization at Centauro and Pedro projects, both in Durango, is associated to hematite-stained, weak to moderately silicified brecciated conglomerate of the Eocene to Oligocene Ahuichila Formation. Historic drilling results include intervals like 5.60 m @ 0.59 gpt Au; 19.82 m @ 0.31 gpt Au; 15.23 m @ 0.58 gpt Au; 50 m @ 0.28 gpt Au; 88.10 m @ 0.24 gpt Au; 112.40 m @ 0.12 gpt Au, with anomalous Ag, As, Sb Tl and Hg.

ON MINING

  • Gold Resource Corp. issued 2023 guidance and suspension of dividends. For 2023 the company expects to produce 17 to 19 K Oz Au, 0.9 to 1.0 M Oz Ag (or 30 to 32 K Oz AuEq) at cash cost $1,000 to $1,050 per AuEq Oz and an AISC of $1,250 to $1,350 per AuEq Oz (Consolidated: $1,650 to $1,750 per AuEq Oz). “the lower grade profile is expected to continue through 2023 and is projected to negatively impact operating cash flows and total cash costs per gold equivalent ounce”, and accordingly “will suspend the quarterly dividend until such time that it may become practicable to reinstate” (Don David, Oaxaca).
  • Capstone Copper Corp. reported financial results for Q4 2022 and year 2022, including figures from its Mexican operations. At Cozamin, in Zacatecas, 3,430 tpd were milled during the quarter to produce 5.8 K tonnes of copper, totaling 24.5 K tonnes Cu on the year at cash cost $1.40 per Lb Cu (which is the lowest cost for Capstone operations). Cash and cash equivalents stood at $170.3 M by the end of the period.

ON FINANCING

  • Reyna Silver Corp. announced the closing of the first tranche of its bought deal private placement for gross proceeds of C$5 M (Guigui and Batopilas, Chihuahua).
  • Mag Silver Corp. completed the previously announced bought deal private placement for aggregate gross proceeds of C$23 M (Juanicipio (44%), Zacatecas).
  • Orogen Royalties Inc. authorized the granting of 156 K restricted share units, 156 K deferred share units and 238 K stock options to independent board members (Royalties on Ermitaño, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Discovery Silver Corp. filed the pre-feasibility study (PFS) on its Cordero property in Chihuahua.
  • Vizsla Silver Corp. reported results from 19 holes on the Copala structure of the Panuco project in Sinaloa. The results represent step-out and infill drilling on the Copala structure that has now been traced for 1,110 m of strike and 400 m downdip. Highlighted true width intervals comprise 2.50 m @ 1,673 gpt Ag, 5.39 gpt Au; 3.35 m @ 428 gpt Ag, 3.64 gpt Au; 2.40 m @ 288 gpt Ag, 1.73 gpt Au; 13.70 m @ 270 gpt Ag, 1.48 gpt Au; 6.00 m @ 648 gpt Ag, 4.29 gpt Au; 3.00 m @ 247 gpt Ag, 2.17 gpt Au; 2.90 m @ 1,010 gpt Ag, 5.91 gpt Au; 6.20 m @ 242 gpt Ag, 1.15 gpt Au; 4.61 m @ 453 gpt Ag, 9.16 gpt Au; 6.00 m @ 176 gpt Ag, 1.12 gpt Au.
  • Avino Silver & Gold Mines Ltd. completed an updated mineral resource estimate for the Avino ET, San Gonzalo, La Potosina, Guadalupe and Oxide Tailing deposits at its Avino property in Durango. Measured and indicated resources comprise 34.7 M tonnes @ 63 gpt Ag, 0.54 gpt Au, 0.39% Cu (or 144 gpt AgEq) containing 70.0 M Oz Ag, 596.6 K Oz Au, 301.4 M Lb Cu. Inferred resources stand at 19.3 M tonnes @ 46 gpt Ag, 0.34 gpt Au, 0.37% Cu (112 gpt AgEq) containing 28.4 M Oz Ag, 212.6 K Oz Au, 158.5 M Lb Cu. Another nearby property, La Preciosa, is also held by Avino and contains 98.6 M Oz Ag, 189.2 K Oz Au in indicated resources and 21.3 M Oz Ag, 35.5 K Oz Au in inferred resources.
  • Impact Silver Corp. announced drill results from the Aurora 2 zone, 1.3 km northeast of the Capire processing plant (in Guerrero), and 16 km south of the company’s active mining operations at the Royal Mines of Zacualpan in Estado de Mexico. The mineralization at the site consists of volcanogenic massive sulfides (VMS) lenses, extending the zone to the west. Highlighted true width intervals comprise 2.39 m @ 106 gpt Ag, 0.42 gpt Au, 0.3% Pb, 0.8% Zn; 3.73 m @ 66 gpt Ag, 0.40 gpt Au, 0.2% Pb, 0.5% Zn; 7.48 m @ 128 gpt Ag, 0.42 gpt Au, 0.8% Pb, 1.8% Zn; 1.01 m @ 138 gpt Ag, 0.49 gpt Ag, 0.5% Pb, 1.1% Zn; 7.95 m @ 63 gpt Ag, 0.52 gpt Au, 0.9% Pb, 2.8% Zn; 2.11 m @ 51 gpt Ag, 0.15 gpt Au, 0.5% Pb, 1.9% Zn; 2.38 m @ 142 gpt Ag, 0.37 gpt Au, 0.2% Pb, 0.5% Zn; 3.28 m @ 34 gpt Ag, 0.24 gpt Au, 0.4% Pb, 1.2% Zn.   

ON DEALS AND CORPORATE ISSUES

  • Silver Spruce Resources Inc. and Colibri Resource Corp. reported the companies have earned 50% ownership interest in the Diamante project in Sonora, while Vendor Bimsa Minera SA de CV retains 50% ownership in the Property. “The 1,057-hectare Diamante property is located adjacent to the Jackie property, a joint venture with Colibri, which covers 1,113 hectares, providing the company with a total of 2,170 hectares of exploration ground. Diamante hosts a number of historical showings and combined with mineralization on the Mezquite and Jackie properties exhibit the geological characteristics of epithermal low to intermediate sulfidation Ag-Au (Pb-Zn)”. With completion of the initial earn-in, Silver Spruce and Colibri together will become equal joint venture partners with the Vendor in BIMCOL Minera, with a six months exclusive period to purchase the remaining 50% by paying either US$2.1 M or US$1.45 M and 2% NSR.
  • Magna Gold Corp. informed the receipt of notices of claims from three of its creditors, Cominivi Servicios S.A. de C.V., Covoro Mining Solutions Mexicana S. de R. L. de C.V. and Sidney W. French S.A. de C.V. for US$6.49 M. Also, a notice of commencement of arbitration with Peal México, S.A. de C.V. was received on a claim of US$13.2 M (San Francisco, Sonora).

ON SOCIAL RESPONSIBILITY

  • No Relevant News.

On the image below: Quartz specularite veining cut by late quartz veinlet on a copper project in the Sonoran Desert. Picture by Abraham López.

The Mining and Exploration News in Mexico: Highlights on the Second Week of February, 2023.

/ gambusinoprospectormexico / Leave a comment

By Miguel A Heredia

During the 6th week of the year (February 6th to February 12th, 2023), at least 14 press releases were announced by companies working in Mexico, with five disclosing deals and corporate issues, three reporting resources and developments of their properties, three announcing financing issues, two informing on exploration results, and one commenting on Mexican issues. ON MEXICO ISSUES, Golden Minerals Corporation was the only mining company reporting drilling results on the second week of February, 2023.  ON EXPLORATION, In Sonora, Prismo filed a drilling permit application for its Pavito project. In Chihuahua, Golden Minerals reported results from the final 10 holes of the third drill program conducted at its Yoquivo project.  ON MINING, no relevant news.  ON FINANCING, Barksdale announced that 8,050,287 common share purchase warrants were exercised prior to their expiration (San Javier project, Sonora). GoGold closed its previously announced bought deal offering for gross proceed of CAD $65M (Los Ricos North and South projects, Jalisco). MAG Silver completed its previously announced bought deal public offering for gross proceeds of USD $42,558,250 (Juanicipio project, Zacatecas). ON RESOURCES AND DEVELOPMENT, Sonoro Gold announced an updated Mineral Resource Estimate for its Cerro Caliche project in Sonora.  Prime Mining announced the details of its 2023 work program objectives and strategy at its Los Reyes project in Sinaloa and will provide a 2022 progress report in February, 2023. Torex provided an inaugural quarterly update on its Media Luna project in Guerrero. ON DEALS AND CORPORATE ISSUES, Colibri and its partner Silver Spruce declared that have earned 50% ownership interest in the Diamante property in Sonora. Discovery Silver announced that its shares will be listed and commence trading on the Toronto Stock Exchange (Cordero project, Chihuahua). Consolidated Zinc entered into a binding conditional share sale agreement with Impact to sell its Plomosas project in Chihuahua. Vizsla, as part of its incentive compensation plan, granted stock options to directors, officers, employees and consultants of the company (Panuco project, Sinaloa). Heliostar announced that their shares remain in a trading halt due to the acquisition of the Ana Paula project in Guerrero from Argonaut Gold.  ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUE

  • Golden Minerals was the only mining company reporting drilling results on the second week of February, 2023. Details are shown in the table below:

ON EXPLORATION

  • Prismo Metals Inc., filed a drilling permit application for its Pavito project in Sonora. The company anticipates the drilling permit will be approved in early March, 2023. Prismo plans to conduct an initial 2,500m drill program in the first half of 2023.
  • Golden Minerals Company reported results from the final 10 holes of the third drill program conducted at its Yoquivo project. Drilling highlights (widths reported are true widths) include hole YQ-22-028 with 3.81 g/t Au and 1,585 g/t Ag over 0.76m on the New Vein, plus 1.16 g/t Au and 105 g/t Ag over 0.80m on the Pertenencia Hangingwall Vein, plus 4.25 g/t Au and 449 g/t Ag over 1.16m on the Camila Hangingwall Vein, plus 1.45 g/t Au and 510 g/t Ag over 4.80m on the Camila Vein; hole YQ-22-031 with 3.86 g/t Au and 668 g/t Ag over 2.29m on the Pertenencia Vein; and hole YQ-22-034 with 1.3 g/t Au and 545 g/t Ag on the San Francisco Hangingwall Vein.

ON MINING

  • No relevant news.

ON FINANCING

  • Barksdale Resources Corp., announced that 8,050,287 common share purchase warrants, with an exercise price of $0.55 were exercised prior to their January 31, 2023 expiry. “The warrant exercises generated gross proceeds of approximately $4.4M, with approximately $3.8M coming from warrant exercises in January 2023. As of February 3, the Company’s unaudited cash position is approximately $6.6M with issued capital of 80,239,886 common shares. (San Javier project, Sonora).
  • GoGold Resources Inc., closed its previously announced bought deal offering of 28.9M common shares at a price of CAD $2.25 for gross proceed of approximately CAD $65M. Net proceeds will be used to advance the Los Ricos North and South projects in Jalisco. A syndicate of underwriters hold an option to purchase up to an additional 4,335,000 common shares at a price of CAD $2.25 per common share, exercisable in whole or in part, on or before March 10, 2023.
  • MAG Silver Corp., completed its previously announced bought deal public offering of 2,905,000 common shares, including 170,000 common shares issued upon the partial exercise of the over-allotment option, at a price of USD $14.65 per common share for gross proceeds of USD $42,558,250. Net proceeds will be used to fund exploration on the Juanicipio and MAG´s other projects, certain sustaining capital requirements at the Juanicipio project, and for working capital and general corporate purposes.

ON RESOURCES AND DEVELOPMENT

  • Sonoro Gold Corp., announced an updated Mineral Resource Estimate (MRE) for its Cerro Caliche project in Sonora, in accordance with the requirements of NI 43-101.  The MRE, with an effective date of January 26, 2023 is based on 59,500m of drilled data including 544 drill holes, 17 trenches and assays for 57,500m of the drilled data. The pit constrained MRE include an indicated resource of 19.9M tonnes with grades of 0.44 g/t Au and 3 g/t Ag (0.46 g/t AuEq) for a total of 280K Oz Au and 2.23M Oz Ag (290K Oz AuEq) contained, and inferred resources of 10.55M tonnes with grades of 0.42 g/t Au and 4 g/t Ag (0.44 g/t AuEq) for a total of 140K Oz Au and 1.34M Oz Ag (150K Oz AuEq).
  • Prime Mining Corp., announced the details of its 2023 work program objectives and strategy at its Los Reyes project in Sinaloa and will provide a 2022 progress report in February, 2023. The company has completed 110,000m of drilling in 2021 – 2022 to contribute to an updated NI 43-101 Mineral Resource Estimate (MRE) which is expected to be released in Q2, 2023. For 2023, Prime has budgeted initial 35,000m in  step-out drilling along the three known deposits (Guadalupe, Z-T, and Central), as well as in generative exploration drilling at key targets in the Los Reyes mining district. Additionally, Prime plans to continue metallurgical test work and metallurgical domain classification of the deposits; to complete preliminary geotechnical analysis of the resource areas; and further mining assessment to advance the property to a potential future development. The company also will continue with the environmental base line work as well as the work dialogue with the community with strong emphasis on water programs and education.  All these programs are fully funded for 2023 with the completion of an over-subscribed $21M private placement on December 22, 2023.
  • Torex Gold Resources Inc., provided an inaugural quarterly update on its Media Luna project in Guerrero. Development of Media Luna is well underway with the project tracking to schedule and to budget. Capital expenditures related to the development of Media Luna are unchanged at USD $874.5M. As at year-end, Torex had commitments in place for USD $229.7M of project expenditures, including USD $124.7M of expenditures incurred. Torex expects to incur USD $390M to USD $440M of capital expenditures at Media Luna in 2023, which is forecasted to be the peak year of investment. All critical path engineering is on track, focused on finalization of key process equipment sizing and specifications as well as continued detailing of the new flotation plant. The Guajes Tunnel and South Portals advanced steady. Breakthrough of the Guajes Tunnel on the south side of the Balsas River remains on track for Q1 2024. The tunnel has successfully crossed under the Balsas River with no issues related to ground conditions or water. Additionally, multiple surface constructions have advanced steady. The company anticipates first production in late 2024.

ON DEALS AND CORPORATE ISSUES

  • Colibri Resource Corporation and its partner Silver Spruce Resources declared that have earned 50% ownership interest in the Diamante property in Sonora. The vendor, Bimsa Minera S.A. de C.V. , retains the remainder 50% ownership interest in the property.
  • Discovery Silver Corp., announced that its shares will be listed and commence trading on the Toronto Stock Exchange (TSX) under the symbol “DSV”, effective as February 3, 2023 (Cordero project, Chihuahua).
  • Consolidated Zinc Limited entered into a binding conditional share sale agreement with Impact Silver Corp., to sell its 100% legal and beneficial interest in Minera Latin American Zinc S.A.P.I. de C.V., a subsidiary of the company that owns the Plomosas project in Chihuahua for USD $6M. The sale agreement for the proposed transaction consist of USD $3M in cash and USD $3M in Impact Silver shares, and the payment of a 12% net profit interest royalty.
  • Vizsla Silver Corp., as part of its incentive compensation plan, granted 2,130,000 stock options at an exercise price of $1.60 and 1,133,572 restricted share units to directors, officers, employees and consultants of the company (Panuco project, Sinaloa).
  • Heliostar Metals Inc., announced that their shares remain in a trading halt due to the acquisition of the Ana Paula project in Guerrero from Argonaut Gold, since this kind of transactions require a number of key documents for the security exchange.

ON SOCIAL RESPONSIBILITY

  • No relevant news.

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

On the picture above, an old adit driven along low-angle sheeted quartz veins in an orogenic gold prospect in Sonora Mexico.  Photo by Miguel A Heredia.

Mexico´s Best Drilling Intercepts on the Second Week of February 2023

/ Gambusino Prospector / Leave a comment

During this period only Golden Minerals Company released drilling results from its Yoquivo project in Mexico. The property seems to be the host for low sulfidation epithermal mineralization in structures up to several meters in width, hosted in a window of andesitic rocks of the Lower Volcanic Group, underlying felsic tuffs of the Upper Volcanic Group in the Sierra Madre of Chihuahua. These are the last results from the third drilling program that commenced on May 2022, comprising 34 holes totaling 9,268 meters. The primary focus of the program was to produce a mineral resource estimate compliant NI-43-101 technical report, estimated to be completed in Q1 2023.

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

/ Gambusino Prospector / Leave a comment

By Jorge Cirett

During the 5th week of the year (January 30th to February 5th, 2023), 15 companies working in Mexico released news on their properties. One company informed on metallurgical results from its project, one company posted consolidated 2022 production and three companies provided updates on 2022 work on their properties and plans for 2023. One company began trading on the OTCQB in USA and two companies are to undertake private placements. Three companies informed on drilling results and work on their advanced properties, one other on the signing of an option agreement on the acquisition of a property and one more provided its bi-weekly status report. ON MEXICO ISSUES, mining companies are among the best compliers on environmental, social and governance strategies. ON EXPLORATION, in Chihuahua, Radius Gold informed on metallurgical results by associate Fresnillo PLC on its Plata Verde property. ON MINING, Altaley Mining provided an update on its 2023 plans for its Tahuehueto (Durango) and Campo Morado (Guerrero) properties. Minera Alamos informed on the late 2022 commercial production and some operational hurdles at its Santana project in Sonora. SilverCrest Metals released Q4 2022 production results and informed on relevant mining issues at Las Chispas, in Sonora. Capstone Copper presented 2023 production guidance for its Cozamin mine in Zacatecas. ON FINANCING, Excellon Resources commenced trading on the OTCQB in USA. GRSilver Mining and Reyna Silver are undertaking private placements for $3 M and C$4 M respectively. ON RESOURCES AND DEVELOPMENT, Orla Mining provided an update on 2022 exploration activities and plans for 2023 at its Camino Rojo project in Zacatecas, releasing impressive drill results from the sulfide zone. Alamos Gold released drilling results from Puerto del Aire deposit in the Mulatos project in Sonora, with the second highest gold intercept in Mexico on the last nine months. Oroco Resource announced drilling results from the South zone of the Santo Tomás project in Sinaloa. ON DEALS AND CORPORATE ISSUES, Aloro Mining signed an option agreement with Cuesta del Cobre to acquire the Quitovac project in Sonora. Gatos Silver complied with the by-weekly status report. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • According to Miranda Partners, mining companies are among the best positioned on environmental, social and governance strategies

ON EXPLORATION

  • Radius Gold Inc. informed on metallurgical results from its Plata Verde project in Chihuahua. Fresnillo PLC has an exclusivity agreement on the project since mid-2022 to negotiate an option agreement to earn a 70% interest in the project. Approximately 100 kg of bulk samples were collected from Mina Mojonera and Mina Real underground workings for metallurgical testing by cyanide leaching and flotation. The samples were classified as “soft” for ball mining, cyanide leach tests reported average 93% Ag recovery, “Flotation studies generate Pb/Cu concentrates with a high grade of silver and good values of lead and copper with recovery of around 85% for silver, 52% for lead and 64% for copper”, the combination of flotation + tailings cyanidation averaged 97% Ag recovery. “Galena is the main sulfide, which registered around 0.11% by weight, chalcocite 0.12%, and sphalerite, pyrite, chalcopyrite and arsenopyrite, which totaled around 0.06%, were detected to a lesser extent. As silver species, stromeyerite, argentite and a low proportion of AgHg were detected. Non-sulfur gangue represented 99.6% by weight mainly as baryte, calcite, albite, and quartz”.

ON MINING

  • Altaley Mining Corp. provided an update on its operations plans for 2023. At Tahuehueto, in Durango, a new consulting construction manager was appointed and recruiting of a new site general manager is in process. The construction of the initial 500 tpd operation is to be completed on 2Q23 and expansion to 1,000 tpd nameplate capacity operation on 4Q23. “Currently the mine is in pre-production, averaging 300 tpd”. At 1,000 tpd capacity the mine is projected to produce 42.8 K Oz AuEq per year, generating a yearly EBITDA of US$28.1 M. For the Campo Morado mine in Guerrero, plans have “strategically shifted focus” towards mining of higher-grade copper orebodies. Campo Morado EBITDA for 2023 is projected to be US$15.9 M. The company expects to progress on implementing recommendations made by Ausenco to improve plant performance at Campo Morado. The metals production for 2023 from Campo Morado is expected to be 15,433 tonnes Zn, 2,967 tonnes Cu, 2,142 tonnes Pb, 184 Kg Au (5,916 Oz Au), 25.8 tonnes Ag (829.8 K Oz Ag) while guidance at Tahuehueto is 1,903 tonnes Zn, 545 tonnes Cu, 1454 tonnes Pb, 289 kg Au (9,291 Oz Au), 6,258 kg Ag (201.2 K Oz Ag).
  • Minera Alamos Inc. informed on the completion in the second half of 2022 of the initial thresholds for commercial production at the Santana project in Sonora, including gold recovery rates from the heap leach pad and monthly mining rates. Final approvals for resubmitted applications are pending for the next phase of pad expansion and full access to the Nicho deposit. Due to water scarcity the company is giving priority at this time to pre-stripping activities, and competing work and plans to proceed with the expansion when the permits are received. The mine was built for US$10 M, most of which has been paid back by the operational performance, which has demonstrated the ability to operate at 10,000 tpd of ore and waste moving. Overall gold recoveries are above 70% for material under 45-60 days leach with residual leach ongoing.
  • SilverCrest Metals Inc. reported Q4 2022 operational results and an update on activities at its Las Chispas mine in Sonora, where commercial production was announced on November 1, 2022. During the quarter 104.3 K tonnes @ 3.67 gpt Au, 382 gpt Ag were processed, recovering 96.9% Au, 93.3% Ag to produce 11,940 Oz Au, 1.20 M Oz Ag (2.23 M Oz AgEq). Underground mining averaged 700 tonnes per day, with resue mining planned for some stopes currently being replaced either by cut and fill or long hole mining. Ore stockpiles stood at 261.6 K tonnes at the end of the period. The company expects to release an updated technical report on Q2 2023. At the end of the quarter cash and cash equivalents represented $50.8 M and total debt $50 M.
  • Capstone Copper Corp. announced consolidated copper production for 2022, without disclosing production by property. The 2023 guidance aims for production at the Cozamin mine in Zacatecas to be in the 23 to 25 K tonnes Cu, with a cash cost of $1.50 – $1.65 per Lb Cu, the lowest for all its operations in Arizona, Mexico and Chile.

ON FINANCING

  • Excellon Resources Inc. commenced trading on the OTCQB Venture Market in USA, while continuing to trade also at the Toronto Stock Exchange (La Negra, Hidalgo).
  • GRSilver Mining Ltd. proposes to undertake a non-brokered private placement to raise total gross proceeds of up to $3 M (Plomosas, Sinaloa).
  • Reyna Silver Corp. entered into an agreement with Eight Capital as lead underwriter and on behalf of a syndicate of underwriters in connection with a bought deal private placement financing for aggregate gross proceeds of C$4 M (Guigui and Batopilas, Chihuahua).

ON RESOURCES AND DEVELOPMENT

  • Orla Mining Ltd. provided an update on 2022 exploration activities at Camino Rojo in Zacatecas, and an overview on 2023 exploration plans. Drilling the Camino Rojo Sulfides returned good gold intercepts, of which the highlighted ones comprise 64.0 m @ 4.66 gpt Au; 79.0 m @ 2.76 gpt Au; 70.0 m @ 2.81 gpt Au; 87.0 m @ 1.92 gpt Au; 73.5 m @ 1.74 gpt Au; 40.5 m @ 3.83 gpt Au; 16.0 m @ 6.94 gpt Au; 37.0 m @ 3.78 gpt Au; 49.5 m @ 2.71 gpt Au. Drilling below the current mineral resource has identified feeder-like structures, with intersects of up to 22.9 m @ 4.02 gpt Au, 1.5% Zn. Drilling of regional targets has returned up to 7.10 m @ 0.54 gpt Au and 2.35 m @ 1.35 gpt Au at the Guanamero target area. “Further drilling is planned in 2023 to test for zones of oxidized mineralization that could potentially allow for local expansion of the oxide pit”. For the Camino Rojo sulfides zone, a 34,000 m of infill drilling in 57 holes is planned, with 20% to test the deep potential, and 6,500 m more on extensions to the Oxide zone to expand resources. On regional exploration, 15,000 to 20,000 of RC drilling and 2,000 to 5,000 m of core drilling are planned to test multiple targets.
  • Alamos Gold Inc. reported results from surface exploration drilling at Puerto del Aire (PDA), an underground deposit within the Mulatos project in Sonora. Highlighted true width intervals comprise 25.95 m @ 33.40 gpt Au (an impressive 866.7 gpt*m); 3.25 m @ 67.58 gpt Au; 6.20 m @ 18.33 gpt Au; 1.50 m @ 75.50 gpt Au; 2.35 m @ 36.50 gpt Au; 1.40 m @ 60.20 gpt Au; 6.75 m @ 11.16 gpt Au; 9.00 m @ 6.73 gpt Au. The results extend high-grade Au mineralization outside the resource zone that holds 556 K Oz Au in reserves and resources grading close to 5 gpt Au. Since the last mineral resource estimate was released on the PDA deposit in 2021, 92 drill holes totalling 27,117 m have been completed. The $17 M exploration budget at Mulatos includes $4 M for drilling focused on expanding resources at PDA.
  • Oroco Resource Corp. announced drilling results from the South zone at its Santo Tomás project in Sinaloa. The 2 km long zone is subdivided in three segments: northern, middle and southern, with the current drilling reported from the middle and southern segments. Highlighted core length results, that are reported to be within 10% of true width, comprise 127.0 m @ 0.37% Cu, 0.049 gpt Au; 146.6 m @ 0.37% Cu, 0.073 gpt Au; 82.0 m @ 0.37% Cu, 0.032 gpt Au; 146.0 m @ 0.24% Cu, 0.014 gpt Au; 66.0 m @ 0.26% Cu, 0.009 gpt Au, 180 ppm Mo; 47.0 m @ 0.35% Cu, 0.018 gpt Au, 80 ppm Mo; 179.2 m @ 0.36% Cu, 0.022 gpt Au, 200 ppm Mo; 349.1 m @ 0.36% Cu, 0.027 gpt Au, 60 ppm Mo; 187.9 m @ 0.51% Cu, 0.038 gpt Au, 120 ppm Mo; 234.3 m @ 0.34% Cu, 0.017 gpt Au, 120 ppm Mo. Drilling on the southern zone segment has intersected western dipping dikes and mineralization, overprinted by hydrothermal breccia bodies and a wide array of stockwork vein and fracture mineralization.

ON DEALS AND CORPORATE ISSUES

  • Aloro Mining Corp. signed an option agreement with Cuesta del Cobre S. de R.L. de C.V. to acquire the Quitovac project in Sonora. The terms include cash and shares amounts of $35 K, 200 K shares within 30 days of approval; $45 K and 200 K shares on year one; $55 K and 200 K shares on year two; $65 K and 200 K shares on year three; $75 K and 300 K shares on year four; $100 K and 400 K shares on year five; $200 K and 500 K shares on year six. The project covers 2,644 hectares with 14 claims, with the orogenic gold mineralization having been tested with 12,450 m of drilling in 100 holes by four companies between 1987 and 2012.
  • Gatos Silver Inc. provided the bi-weekly status report in accordance with National Policy 12-203-Management Cease Trade Orders. Ernst & Young LLP was appointed on November 14, 2022 as the company’s independent registered public accounting firm. “The Company expects all delayed filings, including the audit of the financial statements required to be included in its annual report on Form 10-K for the year ended December 31, 2021, and the reviews of its quarterly reports on Forms 10-Q for the quarters ended March 31, 2022, June 30, 2022 and September 30, 2022, to be completed before the end of the first quarter of 2023” (Cerro Los Gatos, Chihuahua).

ON SOCIAL RESPONSIBILITY

  • No Relevant News.

On the image below: Quartz specularite vein on a copper project in the Sonoran Desert. Picture by Abraham López.

The Mining and Exploration News in Mexico: Highlights on the Fourth Week of January, 2023.

/ Gambusino Prospector / Leave a comment

By Miguel A Heredia

During the 4th week of the year (January 23rd to January 29th, 2023), at least 21 press releases were announced by companies working in Mexico and a couple of news published by the media. One company informed on project exploration work, four companies released Q4 2022 production reports, one company elaborated on its 2023 plans, one company announced a financing round, one other elaborated on its share consolidation process and one more cancelled a previously announced financing round. Seven companies reported on work at their advanced or operating properties, three organizations disclosed personnel appointments and one more on a deal about the sale of a tailings property. ON MEXICO ISSUES, Fortuna Silver provided an update on its San Jose mine environmental impact authorization.  ON EXPLORATION, In Sonora, Tocvan and its JV partner Colibri begun the preparation for an initial bulk sample at its Pilar property. ON MINING, Mag Silver, Fresnillo PLC, Santacruz Mining and Guanajuato Silver reported Q4 and full year 2022 production results. Avino provided its outlook for 2023.  ON FINANCING, Heliostar announced a non-brokered private placement of up to CAD $16.28M (Ana Paula project, Guerrero), Fabled Silver is to consolidate its shares on a 5 to 1 ratio, and Tarachi Gold cancelled its previously announced financing round. ON RESOURCES AND DEVELOPMENT, Silver Tiger released results from drilling at its El Tigre project in Sonora. GoGold presented drilling results from the Eagle and Main Deposits within its Los Ricos South project in Jalisco. Bendito Resources is to prepare a technical report on its Oposura project in Sonora. Gatos Silver updated on extension and resource definition drilling at its Cerro Los Gatos property in Chihuahua. Discovery Silver filed a PFS report on its Cordero project, in Chihuahua. Vizsla Silver updated the mineral resource estimate for its Panuco project in Sinaloa, with a significant increase. Endeavour Silver filed resource estimate updates on its Guanaceví and Bolañitos projects, in Durango and Guanajuato respectively. ON DEALS AND CORPORATE ISSUES, Discovery Silver announced the appointment of its new CEO and the promotion of Román Solis to VP Mexico (Congratulations Román!). Altaley announced the appointment of its new CFO (Tahuehueto project, Durango). Tarachi Gold is selling its Magistral project in Durango to Compañía Minera de Atocha. Vizsla Silver appointed Charles Funk as Lead Technical Advisor, and Michael Pettingeli was promoted to Senior VP (Panuco, Sinaloa). ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • Fortuna Silver Mines Inc., provided an update on its San Jose Mine´s environmental impact authorization. It informed that the Mexican Federal Administrative Court has granted a provisional injunction to Compañía Minera Cuzcatlán, Fortuna´s Mexican subsidiary, which allows the San Jose Mine to continue to operate under the terms of the 12-year environmental impact authorization (EIA). It is expected that the Court will decide on the grant of a permanent injunction, within the coming weeks, which would continue in effect until the Court has ruled on the revocation of the EIA.     

ON EXPLORATION

  • Tocvan Ventures Corp., and its JV partner Colibri Resource Corp., begun the preparation for an initial bulk sample at its Pilar property in Sonora. Over 1,000 tonnes of oxide-gold material will be extracted from select areas exposed at surface. This bulk sample will be prepared in February for processing by heap-leach method at a private mining operation less than 25km to the west of Pilar. “Data generated from the bulk sample will provide an understanding of the expected head-grades and recovery percentages of gold and will help optimize future onsite production facilities”.

ON MINING

  • Mag Silver Corp., reported Q4 and full year 2022 production results from its Juanicipio project in Zacatecas (56% / 44% Fresnillo PLC and Mag Silver Corp. respectively). The company processed 165,786 tonnes from underground and initial stopes at an average grade of 415 g/t Ag to produce 1.86M Oz Ag and 5,380 Oz Au, and 646,148 tonnes in the full year 2022 at an average grade of 520 g/t Ag to produce 9.25M Oz Ag and 22,252 Oz Au. “The associated lead and zinc production will be reported with MAG Silver’s year end filings”.
  • Avino Silver & Gold Mines Ltd., provided its outlook for 2023, and presented a summary of the major milestone achieved in 2022. Avino plans to process 700K-750K tonnes in the full year from both Avino Mine and La Preciosa stockpiles to produce between 2.8M and 3.2M Oz AgEq. The company estimated a total capital budget of USD $9-$11.5M and a Corporate budget of USD $0.5M (USD $9.5-$12M consolidated), of which USD $5-$6M will be Grow Capital, USD $1-$1.5M for Exploration & Evaluation, and USD $3-$4M for Sustaining Capital & Mine Development. The company also reported that “its internal estimate for production was between 2.2-2.4M Oz AgEq and capital expenditures for 2022 were expected to total between USD$7M and USD $9M, excluding the acquisition of La Preciosa. In addition, it included a drill program targeting areas and veins on the property, including the recommended drilling on the Oxide Tailings Project, the construction of the dry-stack tailings facility, and metallurgical projects to help improve recovery rates”.
  • Fresnillo PLC. released Q4 2022 production results. During the period 12.5 M Oz Ag, 167,969 Oz Au, 12,756 tonnes Pb, 23,060 tonnes Zn were produced, taking the yearly total to 53.7 M Oz Ag (including Silverstream), 635,926 Oz Au, 52,950 tonnes Pb, 99,153 tonnes Zn. At the Fresnillo mine in Zacatecas, 624.1 K tonnes were processed averaging 197 gpt Ag, 0.58 gpt Au, 1.0% Pb, 2.4% Zn to produce 3.6 M Oz Ag, 8,314 Oz Au, 5,609 tonnes Pb, 11,097 tonnes Zn during the quarter. At Saucito, in Zacatecas, 508.4 K tonnes were processed @ 208 gpt Ag, 1.39 gpt Au, 0.9% Pb, 1.6% Zn, to produce 3.03 M Oz Ag, 18,076 Oz Au, 3,859 tonnes Pb, 5,868 tonnes Zn. At the Pyrites Plant in Zacatecas, 32.2 K tonnes were processed @ 145 gpt Ag, 1.19 gpt Au, to produce 111 K Oz Ag, 374 Oz Au. At Cienega, in Durango, 256.9 K tonnes were processed @ 1.20 gpt Au, 139 gpt Ag, 0.56% Pb, 0.94 % Zn, to produce 9,122 Oz Au, 0.98 M Oz Ag, 930 tonnes Pb, 1,372 tonnes Zn. At San Julián in Chihuahua, production during the quarter was 11,907 Oz Au, 3.11 M Oz Ag. At Herradura in Sonora 27.44 M tonnes were hauled, 7.08 M tonnes processed @ 0.71 gpt Au, 1.35 gpt Ag, to produce 103,826 Oz Au, 191 K Oz Ag. At Noche Buena in Sonora 7.3 M tonnes were hauled, 1.23 M tonnes processed averaging 0.51 gpt Au, 0.21 gpt Ag, to produce 13,331 Oz Au, 3 K Oz Ag. Attributable production (56% Fresnillo / 44% Mag Silver) from Juanicipio in Zacatecas was 1.04 M Oz Ag, 3,020 Oz Au during the quarter. The company aims to have a gold production ranging between 590 K and 640 K Oz Au in 2023.
  • Santacruz Silver Mining Ltd. reported Q4 and full year production, including figures from its Mexican operations. At Zimapan, in Hidalgo, 215 K tonnes averaging 71 gpt Ag, 2.19% Zn, 0.63% Pb, 0.40% Cu were processed, recovering 61.5% Ag, to produce 301.2 K Oz Ag, 3,098 tonnes Zn, 1,036 tonnes Pb, 569 tonnes Cu during the quarter. For the year, 822.1 K tonnes were processed @ 73 gpt Ag, 2.13% Zn, 0.65% Pb, 0.37% Cu, recovering 67.3% Ag to produce 1.29 M Oz Ag, 12,577 tonnes Zn, 4,450 tonnes Pb, 2,165 tonnes Cu. At Zimapan “Q4 has seen the purchase and installation of a replacement secondary crusher, commissioning of a zinc flotation column, and installation of additional concentrate filtration capacity. A Metallurgical testing program is underway to address new mineralized zones being mined, and to maximize recoveries”.
  • Guanajuato Silver Company Ltd. announced consolidated production results for the fourth quarter 2022. The production, not disclosed by operations, comes from the El Cubo mines complex, Valenciana mines complex and San Ignacio mine, in Guanajuato, and from the Topia mine in Durango. During the period 131.5 K tonnes were mined, 131.3 K tonnes milled, recovering 86.8% Ag, 84.2% Au, to produce 401.2 K Oz Ag, 3,907 Oz Au, 811.5 K Lb Pb, 1.26 M Lb Zn (or 836.4 K Oz AgEq). “Consolidated silver equivalent production in Q4 was 19% higher than the previous quarter. This increase reflects the continuing ramp-up of operations at all of GSilver’s mining assets. Total production for 2022 was 2.15 million AgEq”.

ON FINANCING

  • Heliostar Metals Limited announced a non-brokered private placement of up to 74M units at a price of CAD $0.22 per unit for gross proceeds of up to approximately CAD $16.28M or USD $12.5M. Net proceeds will be used to advance the Ana Paula development stage in Guerrero, as well as for working capital and general corporate purposes.
  • Fabled Silver Gold Corp., announced that it has received Toronto Stock Exchange Venture (TSXV) approval for the 5 to 1 consolidation of the common shares of the company. There will be no name change in conjunction with the consolidation. The post-consolidation common shares will continue to trade on the TSXV under the symbol “FCO”. (Santa Maria project, Chihuahua).
  • Tarachi Gold Corp. cancelled its previously announced private placement (Tarachi, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Silver Tiger Metals Inc., released results from its ongoing drilling program being conducted at its El Tigre project, Sonora. Drilling highlights include hole ET-22-432 with 0.1 g/t Au, 39 g/t Ag, 0.01% Cu, 0.02% Pb, and 0.02% Zn (48.5 g/t AgEq) over 9.4m on the HW Gold Zone, plus 0.16 g/t Au, 399 g/t Ag, 0.43% Cu, 2.8% Pb, and 5.2% Zn (691 g/t AgEq) over 10.4m on the Sooy Vein, including 0.24 g/t Au, 1,154 g/t Ag, 1.29% Cu, 9.8% Pb, and 17% Zn (2,085 g/t AgEq) over 2,1m, plus 0.13 g/t Au, 257 g/t Ag, 0.47% Cu, 1.2% Pb, and 2% Zn (407 g/t AgEq) over 34.8m on the Sulphide Zone, including 0.13 g/t Au, 957 g/t Ag, 1.69% Cu, 3.6% Pb, and 7% Zn (1,556 g/t AgEq) over 8.2m, including 0.17 g/t Au, 1,663 g/t Ag, 4.32% Cu, 6.3% Pb, and 11.5% Zn (2,622 g/t AgEq) over 2.1m;M hole ET-22-434 with 0.39 g/t Au, 97 g/t Ag, 0.01% Cu, 0.08% Pb, and 0.01% Zn (130 g/t AgEq) over 8.5m on the HW Zone, including 2.04 g/t Au, 336 g/t Ag, 0.02% Cu, 0.2% Pb, and 0.04% Zn (497 g/t AgEq) over 1.5m, plus 0.16 g/t Au, 172 g/t Ag, 0.36% Cu, 2.1% Pb, and 2.6% Zn (354 g/t AgEq) over 13m on the Sooy Vein, including 0.19 g/t Au, 326 g/t Ag, 0.84% Cu, 4.9% Pb, and 6% Zn (735 g/t AgEq) over 5.2m, including 0.24 g/t Au, 496 g/t Ag, 1.76% Cu, 7.2% Pb, and 8.6% Zn (1,139 g/t AgEq) over 2.1m, plus 0.11 g/t Au, 377 g/t Ag, 0.32% Cu, 0.1% Pb, and 0.1% Zn (422 g/t AgEq) over 6.6m on the Sulphide Zone, including 0.2 g/t Au, 1,116 g/t Ag, 0.89% Cu, 0.2% Pb, and 0.1% Zn (1,226 g/t AgEq) over 2m, including 0.25 g/t Au, 1,859 g/t Ag, 1.44% Cu, 0.3% Pb, and 0.2% Zn (2,030 g/t AgEq) over 1m, plus 0.22 g/t Au, 606 g/t Ag, 1.13% Cu, 4% Pb, and 7.4% Zn (1,073 g/t AgEq) over 19.9m, including 0.2 g/t Au, 914 g/t Ag, 1.68% Cu, 5.9% Pb, and 12.4% Zn (1,642 g/t AgEq) over 10.5m; and hole ET-22-438 with 0.16 g/t Au, 19 g/t Ag, 0.01% Pb, and 0.01% Zn (31 g/t AgEq) over 43.5m on the HW Gold Zone, including 2.26 g/t Au, 566 g/t Ag, 0.02% Cu, 0.02% Pb, and 0.,02% Zn (739 g/t AgEq) over 0.6m, plus 0.52 g/t Au, 300 g/tr Ag, 0.18% Cu, 0.7% Pb, and 0.3% Zn (385 g/t AgEq) over 3.2m on the Sooy Vein, including 1.51 g/t Au, 773 g/t Ag, 0.48% Cu, 2.1% Pb, and 0.8% Zn (1,007 g/t AgEq) over 0.9m, plus 0.27 g/t Au, 408 g/t Ag, 0.53% Cu, 0.9% Pb, and 0.8% Zn (527 g/t AgEq) over 19.5m on the Sulphide Zone, including 0.24 g/t Au, 879 g/t Ag, 0.76% Cu, 0.9% Pb, and 1.4% Zn (1,036 g/t AgEq) over 3.7m, including 0.62 g/t Au, 2,796 g/t Ag, 1.75% Cu, 1.8% Pb, and 4.2% Zn (3,193 g/t AgEq) over 0.5m, including 0.51 g/t Au, 564 g/t Ag, 0.9% Cu., 1.7% Pb, and 1.3% Zn (772 g/t AgEq) over 8m, including 1.47 g/t Au, 1,148 g/t Ag, 1.4% Cu, 1.5% Pb, and 0.7% Zn (1,452 g/t AgEq) over 0.7m.
  • GoGold Resources Inc., presented additional results from its ongoing drilling program at Eagle and Main Deposits within its Los Ricos South project in Jalisco. Drilling highlights include hole LRGAG-22-218, the best hole drilled to date in the Los Ricos District, with 7.8 g/t Au and 2,153 g/t Ag (36.51 g/t AuEq or 2,738 g/t AgEq) over 55m, including 16.07 g/t Au and 4,664 g/t Ag (78.26 g/t AuEq or 5,869 g/t AgEq) over 25m, including 26,74 g/t Au and 7,756 g/t Ag (130.15 g/t AuEq or 9,761 g/t AgEq) over 15m, including 55.87 g/t Au and  16,525 g/t Ag (276.19 g/t Au or 20,714 g/t AgEq) over 7m, including 121.97 g/t Au and 36,953 g/t Ag (614.67 g/t AuEq or 46,100 g/t AgEq) over 3m, including 145.25 g/t Au and 52,764 g/t Ag (848 g/t AuEq or 63,658 g/t AgEq) over 2m; hole LRGAG-22-221 with 0.85 g/t Au and 138 g/t Ag (2.69 g/t AuEq or 202 g/t AgEq) over 29.4m, including 4.98 g/t Au and 749 g/t Ag (14.97 g/t AuEq or 1,122 g/t AgEq) over 4.4m, including 12.70 g/t Au and 2,370 g/t Ag (44.3 g/t Au Eq or 3,322 g/t AgEq) over 0.9m; and hole LRGAG-22-222 with 0.94 g/t Au and 105 g/t Ag (2.34 g/t AuEq or 176 g/t AgEq) over 8.7m, including 7.6 g/t Au and 592 g/t Ag (15.49 g/t AuEq or 1,162 g/t AgEq) over 0.6m. “Drilling at the Eagle Deposit has returned the highest grade intercepts to date in the district.  These wide high grade intercepts are consistent with geophysical targets on the new Eagle concession”.
  • Bendito Resources Inc., announced the preparation of a NI 43-101 Technical Report for its Oposura project in Sonora. Highlights of this technical report include the potential to support Mineral Resource Estimate (MRE) at Oposura, once appropriate data verification and modelling has been completed; Mineralization at Oposura consists of base and precious metal, massive sulphide manto-style of Zn, Pb-Ag; Additional drilling is needed to extend MRE and connect it to other already known zones; presence of undrilled targets with upside potential demonstrated by geophysics and surface mapping and sampling, including the Mina Blanca Target which consists of polymetallic veins; and potential for discovery of the porphyry source, the same that has been partially intercepted in some holes underneath the MRE.
  • Gatos Silver Inc. updated on extension and resource definition drilling results on its Cerro Los Gatos property in Chihuahua. Highlighted true-width intercepts from the South-East Deeps zone comprise 5.7 m @ 0.13 gpt Au, 47 gpt Ag, 0.42% Cu, 1.8% Zn, 5.3% Zn; 11.3 m @ 0.43 gpt Au, 118 gpt Ag, 0.12% Cu, 1.9% Pb, 2.5% Zn; 2.0 m @ 771 gpt Ag, 0.16% Cu, 0.1% Pb, 0.7% Zn, while those from the definition drilling comprise 3.2 m @ 0.26 gpt Au, 52 gpt Ag, 0.58% Cu, 2.8% Pb, 9.5% Zn; 4.5 m @ 0.52 gpt Au, 88 gpt Ag, 4.3% Pb, 10.0% Zn; 5.3 m @ 0.15 gpt Au, 99 gpt Ag, 0.40% Cu, 3.4% Pb, 5.9% Zn; 9.60 m @ 0.14 gpt Au, 90 gpt Ag, 0.29% Cu, 2.6% Pb, 1.7% Zn. Drilling on the South-East Deeps has defined a zone of more than 950 m along strike, and extended the zone 85 m downdip, remaining open laterally and at depth. “Resource conversion and extension drilling at CLG in the North-West, Central and South-East zones has returned strong results with particularly high base metal values”. Over 45 targets have been identified on the 103,000 hectares land package.
  • Discovery Silver Corp. reported a preliminary feasibility study (PFS) on its Cordero project in Chihuahua. The base case scenario involves an after tax NPV5% of US$1.2 Billion and an IRR of 28%, an 18-year mine life (to mine only 42% of the mineral reserves) with an average of 33 Moz AgEq production per year, with an average AISC of $12.80 per Oz AgEq in the first 12 years as well as an initial development capex of $455 M with a NPV-to-capex ratio of 2.5x. Measured and indicated mineral resources comprise 716 M tonnes averaging 20 gpt Ag, 0.06 gpt Au, 0.29% Pb, 0.38% Zn (or 49 gpt AgEq), containing 467 M Oz Ag, 1.26 M Oz Au, 4,544 M Lb Pb, 8,484 M Lb Zn. Inferred resources comprise 145 M tonnes @ 14 gpt Ag, 0.02 gpt Au, 0.23% Pb, 0.38% Zn (or 35 gpt AgEq), containing 67 M Oz Ag, 122 K Oz Au, 726 M Lb Pb, 1,215 M Lb Zn.
  • Vizsla Silver Corp. updated the mineral resource estimate at it Panuco project in Sinaloa. The report reveals 71% and 150% increments in indicated and inferred mineral resources, and an increase on the grade of 14% and 42% respectively. Indicated minerals resources stand at 7.5 M tonnes @ 243 gpt Ag, 2.12 gpt Au, 0.23% Pb, 0.71% Zn (or 437 gpt AgEq) containing 58.3 M Oz Ag, 508 K Oz Au, 17 K tonnes Pb, 53.3 K tonnes Zn. Inferred mineral resources host 7.2 M tonnes @ 304 gpt Ag, 2.14 gpt Au, 0.19% Pb, 0.54% Zn, hosting 70.7 M Oz Ag, 496 K Oz Au, 13.6 K tonnes Pb, 39.3 K tonnes Zn. The estimate encompasses 8 km of the 86 km of cumulative vein length in the district, including results from 202,709 m of drilling in 644 holes.
  • Endeavour Silver Corp. filed technical reports on the Guanaceví and the Bolañitos projects, disclosing updated mineral resources estimates. At Guanaceví, in Durango, mineral reserves comprise 1.26 M tonnes @ 476 gpt Ag, 1.14 gpt Au, containing 19.3 M Oz Ag, 46 K Oz Au (or 23 M Oz AgEq); measured and indicated mineral resources (exclusive of mineral reserves) are 714.4 K tonnes @ 467 gpt Ag, 1.2 gpt Au, containing 10.7 M Oz Ag, 27 K Oz Au (or 12.8 M Oz AgEq); inferred resources comprise 838.7 K tonnes @ 416 gpt Ag, 0.9 gpt Au, containing 11.2 M Oz Ag, 25 K Oz Au (or 13.1 M Oz AgEq). At Bolañitos, in Guanajuato, mineral reserves comprise 534 K tonnes @ 101 gpt Ag, 2.8 gpt Au, containing 1.2 M Oz Ag, 42.6 K Oz Au; (or 4.6 M Oz AgEq); measured and indicated mineral resources (exclusive of mineral reserves) are 453.5 K tonnes @ 110 gpt Ag, 2.3 gpt Au, containing 1.6 M Oz Ag, 34 K Oz Au (or 4.1 M Oz AgEq); inferred resources comprise 1.66 M tonnes @ 141 gpt Ag, 2.5 gpt Au, containing 7.5 M Oz Ag, 132.2 K Oz Au (or 17.6 M Oz AgEq).  

ON DEALS AND CORPORATE ISSUES

  • Discovery Silver Corp., announced the appointment of its new CEO, effective immediately, and the promotion of Román Solis to VP Mexico (Cordero property, Chihuahua).
  • Altaley Mining Corporation announced the appointment of its new CFO, effective on February 1st, 2023 (Tahuehueto project, Durango).
  • Tarachi Gold Corp. signed a binding letter agreement with Compañía Minera de Atocha S.A. de C.V. for the sale of the Magistral project in Durango. At closing of the transaction Atocha will make a cash payment of US$4.05 M; further US$500 K when 50% of the tailings have been mined/sold or processed, or after the second calendar year of operation at the project; US$500 K when 100% of the tailings have been mined/sold or processed, or after the second calendar year of operation at the project, and the amount of value added tax (IVA) owed to the company by the government, estimated at US$650 K. “Tarachi will seek to settle all outstanding obligations owing to Manto Resources S.A. de C.V. (“Manto”) in relation the Company’s original acquisition of the Magistral Project from Manto in 2021 ….. Tarachi will pay to Manto 15% of all payments received from Atocha in the Transaction as those payments are received”. Tarachi expects to receive from the transaction, net of payments made to Manto, a total of US$4.84 M.
  • Vizsla Silver Corp. appointed Charles Funk as Lead Technical Advisor, and Michael Pettingeli was promoted to Senior Vice President, business development and strategy. (Panuco, Sinaloa).

ON SOCIAL RESPONSIBILITY

  • No relevant news.

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

On the picture above, a fault-plane displaying slickensides on a silicified breccia in a project in Sonora, Mexico.  Photo by Abraham López.

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

/ Gambusino Prospector / Leave a comment

By Jorge Cirett

During the 3rd week of the year (January 16th to January 22nd, 2023), 20 companies working in Mexico released news on their properties. Two companies posted on exploration of non-advanced properties, six companies posted on Q4 2022 production figures, one released its 2023 production guidance and one announced the re-start of operations at a processing plant in Guanajuato. One company extended the maturity date of convertible debentures. Five companies informed on work at its advanced properties, including three that released drilling results and two that updated on mineral resources. One company restricted the NSR agreement on an advanced property, one informed on the acquisition of a past-producing mine and one other informed on the leasing of its processing plant for part of the profits. ON MEXICO ISSUES, no relevant news. ON EXPLORATION, In Sonora, Reyna Gold released sample results from its La Gloria project. In Jalisco, Almadex Minerals updated on exploration plans at San Pedro. ON MINING, Orla Mining, Avino Silver, Fortuna Silver, Gold Resource, Pan American Silver and First Majestic Silver presented production reports for Q4 2022. Torex Gold released its 2023 production guidance and Guanajuato Silver is to start processing at the Cata mill in Guanajuato. Capitan Mining released drill results from the Jesús María system at its Cruz de Piedra project in Durango.  ON FINANCING, Excellon Resources is to convert C$4.5 M of debentures into equity and extend the maturity of remaining principal. ON RESOURCES AND DEVELOPMENT, GR Silver released drilling results from the SE zone of the San Marcial project in Sinaloa. Regency Silver updated the resource estimate at Dios Padre in Sonora. GoGold Resources posted drilling results from El Favor deposit at its Los Ricos North project in Jalisco. Excellon Resources filed a PEA on La Negra deposit in Hidalgo. ON DEALS AND CORPORATE ISSUES, Defiance Silver restructured an option agreement to acquire the NSR at the Tepal project in Michoacan. Excellon Resources announced last week the acquisition agreement on the past-producing La Negra mine in Hidalgo. Xali Gold signed a lease for part of the profits obtained in the processing of minerals by a private company at its San Dieguito de Arriba mill in Nayarit. ON SOCIAL RESPONSIBILITY, First Majestic Silver received the “Silver Helmet Award” for underground mining with more than 500 workers for its health and safety performance.

ON MEXICO ISSUES

  • No Relevant News.

ON EXPLORATION

  • Reyna Gold Corp. released sample results from district-scale exploration at its 24,215 hectare La Goloria property in Sonora. At Las Carmelitas 43 samples average 2.25% Cu, 89 gpt Ag, 0.21 gpt Au and 0.48% Sb defining a supergene enrichment zone on conglomerate, agglomerate and sandstone with a 2.5 Km by 1.7 km footprint continuing undercover in several directions. At the Western target new parallel structures have been discovered on a 1,500 by 450 m zone with eight samples returning 2.89 to 11.35 gpt Au, up to 27 gpt Ag and 22 to 135 gpt Tellurium. At La Republicana the northwest-southeast trend has now been extended with discontinuous veins and veinlets for 2.8 km, and a width of 625 m with grades of up to 103.5 gpt Au, 283 gpt Ag, 2.4% Cu, 5.33% Pb, 0.12% Zn. “At least 3 hydrothermal events have occurred in the zone: 1) veins and veinlets of white quartz (occasionally greyish) with the presence of galena, chalcopyrite, and covellite, 2) veins and veinlets of quartz-tourmaline (cutting first event structures) coarse pyrite is observed, traces of chalcopyrite and secondary minerals such as hematite, jarosite, malachite and chrysocolla, 3) filling of calcite and iron carbonates within second event structures”. Drilling is programmed for March 2023.
  • Almadex Minerals Ltd. updated on exploration plans for its San Pedro project in Jalisco. The breccias intercepted in 2022 drilling appear to have a sub horizontal distribution. “Further surface mapping is planned to confirm and refine this interpretation in order to optimise the next drilling program. The elevated base metals and copper seen in the breccia, along with acid sulphate altered fragments suggests that the breccia and related mineralisation may be a late feature in the lithocap environment”. It is interpreted that the acid sulphate lithocap present has potential for gold mineralization, and deep copper potential beneath.

ON MINING

  • Orla Mining Ltd. provided an operational update for the fourth quarter 2022. The Camino Rojo Oxide mine produced 32,017 Oz Au during the period, and 109,596 Oz Au throughout the full year. All-in sustaining costs (AISC) has been maintained at $600 to $700 per Oz Au for the year. Production for 2023 is expected to be between 100,000 to 110,000 Oz Au. “Income taxes accrued during 2022, including Mexican Special Mining Duty, totalling approximately $35 million, will be paid in a lump sum in March 2023. Thereafter, Orla expects to pay income tax instalments monthly, beginning in May 2023”. Orla ended the year with a cash position of $96.6 M.
  • Avino Silver & Gold Mines Ltd. reported fourth quarter 2022 production results at the Avino mine in Durango. During the period 150.3 K tonnes were milled at an average grade of 70 gpt Ag, 0.62 gpt Au, 0.53% Cu, recovering 92% Ag, 81% Au, 88% Cu to produce 309.8 K Oz Ag, 2,426 Oz Au, 1.54 M Lb Cu (770 .1 K Oz AgEq). For the year 541.8 K tonnes were milled @ 62 gpt Ag, 0.42 gpt Au, 0.61% Cu, recovering 92% Ag, 78% Au, 89% Cu, to produce 985.2 K Oz Ag, 5,778 Oz Au, 6.50 M Lb Cu (2.65 M Oz AgEq). The dry-stack tailing facility was commissioned and is now fully operational.
  • Guanajuato Silver Company Ltd. announced that the Cata mill has commenced precious metals processing at the Valenciana Mines Complex (VMC) in Guanajuato. The company is to start processing material at a rate of 8 K tonnes per month and to increase it later in the year to 20 K tonnes per month. The mill has a nameplate capacity of 36 K tonnes per month. “The Company plans to operate the Cata mill with production from both VMC and the San Ignacio mine …… intends to backfill tailings underground using a hydraulic fill system that will make use of select voids and open stopes that have been created at VMC over the past 450 years of underground mining”.
  • Torex Gold Resources Inc. provided operational guidance for 2023 and 5-year production outlook for the Morelos Complex in Guerrero, which comprises the El Limón Guajes (ELG) Complex and the Media Luna project. For 2023 at ELG the expected gold production is between 440 K and 470 K Oz Au at total cash costs $740 to $780 per OZ Au and all-in sustaining costs of $1,080 to $1,130. “The strip ratio for 2023 is expected to average 10.7:1 compared to 8.9:1 in 2022 given additional laybacks within the El Limón and El Limón Sur open pits. Based on the current mine plan, a higher portion of waste is expected to be mined in the second and third quarters compared with the first and fourth quarters”. Approximately $39 M are budgeted for exploration and drilling in 2023, including $20 M for Media Luna, $6 M for ELG underground, $8 M for exploration in near mine on early exploration targets and $5 M in definition and grade control drilling. For the next five years production is expected to be in the 400 K to 500 K Oz Au per year.
  • Fortuna Silver Mines Inc. reported production results for the fourth quarter 2022, including figures from its Mexican operations. During the fourth quarter 259.5 K tonnes were milled at a rate of 2,883 tonnes per day (tpd), averaging 194 gpt Ag, 1.13 gpt Au, recovering 91.1% Ag, 89.8% Au to produce 1.47 M Oz Ag, 8,499 Oz Au. For the year, 1.03 M tonnes were milled at a rate of 2,925 tpd, averaging 191 got Ag, 1.14 gpt Au, to produce 5.76 M Oz Ag, 34,124 K Oz Au. For 2023 the company plans to process 1.03 M tonnes @ 186 gpt Ag, 1.19 gpt Au, reflecting the declining grade profile of mineral reserves.
  • Gold Resource Corp. released fourth quarter 2022 production for the Arista mine in Oaxaca. During the period 97.8 K tonnes were milled at a rate of 1,353 tonnes per day, averaging 2.68 gpt Au, 91 gpt Ag, 0.37% Cu, 2.29% Pb, 4.79% Zn to produce 6,933 Oz Au, 265.8 K Oz Ag, 284 tonnes Cu, 1,808 tonnes Pb, 3,920 tonnes Zn.
  • Pan American Silver Corp. announced preliminary production results for the Q4 2022, including figures from its Mexican operations. At La Colorada, in Zacatecas, 1.34 M Oz Ag, 700 Oz Au were produced during the period, for a yearly total of 5.93 M Oz Ag, 3,300 Oz Au. At Dolores, in Chihuahua, 0.59 M Oz Ag, 34,600 Oz Au were produced during the quarter, for a yearly production of 2.24 M Oz Ag, 136,900 Oz Au.
  • First Majestic Silver Corp. released total production results for the fourth quarter of 2022. The company’s consolidated production from its three operating mines in Mexico (San Dimas in Durango, Santa Elena in Sonora, La Encantada in Coahuila) was 2.39 M Oz Ag, 46,194 Oz Au (or 6.17 M Oz AgEq). The liquid natural gas powerplant at Santa Elena was expanded from 12 MW to 24 MW “to supply low‐cost, clean power to the Ermitaño mine and the recently completed dual‐circuit plant”. In exploration, four drilling rigs are operating at Dan Dimas, in Durango, three at Santa Elena in Sonora and one at La Encantada, in Coahuila.

ON FINANCING

  • Excellon Resources Inc. entered into a binding term sheet with holders representing approximately 66.67% of the principal “amount of outstanding convertible debentures to convert 25% of the debentures (C$4.5 M) into equity and reprice and extend maturity of remaining principal outstanding upon closing the acquisition of La Negra property in Queretaro, providing greater flexibility to the Company. Furthermore, reprice the conversion price of the remaining principal to C$0.535 per share, 6.5% interest rate or 10.0% payable in shares at the company’s election” (La Negra, Hidalgo).

ON RESOURCES AND DEVELOPMENT

  • GR Silver Mining Ltd. released surface drilling results from six holes in the Southeast Area of the San Marcial project in Sinaloa. Highlighted core-length intervals comprise 5.6 m @ 1,223 gpt Ag, 1.4% Pb, 1.2% Zn (including 0.3 m @ 25,150 gpt Ag, 30% Pb, 18.6% Zn); 82.7 m @ 121 gpt Ag (including 0.4 m @ 3,386 gpt Ag and 1.1 m @ 1,391 gpt Ag); 112.6 m @ 61 gpt Ag (including 0.9 m @ 1,055 gpt Ag); 0.6 m @ 14.3 gpt Au. “The six holes represent extensions along strike or down dip, creating the potential to expand silver mineralization boundaries”.
  • Capitan Mining Inc. released drill assays for five holes on the Jesus Maria zone at the Cruz de Piedra project in Durango. Highlighted core length intervals comprise 16.8 m @ 0.35 gpt Au, 187 gpt Ag, 0.1% Pb, 0.1% Zn (including 1.5 m @ 1.36 gpt Au, 1,381 gpt Ag, 0.8% Pb, 0.5% Zn); 4.6 m @ 0.63 gpt Au, 183 gpt Ag (including 1.5 m @ 1.45 gpt Au, 504 gpt Ag); 15.2 m @ 0.44 gpt Au, 21 gpt Ag, 0.5% Pb, 0.8% Zn (including 1.5 m @ 1.82 gpt Au, 81 gpt Ag, 3.2% Pb, 4.2% Zn). The Jesus Maria zone has been traced by trenching and drilling for 750 m of strike length to a depth of up to 150 m “On Dec 6 th, 2022, Capitan announced that it had entered into a transaction with a third party to consolidate the 2.5km high grade Jesus Maria trend”.
  • Regency Silver Corp. announced an updated resource estimate for its Dios Padre project in Sonora. The updated resource estimate incorporates 1,056 m of drilling in 8 holes drilled in 2022 and 10,425 m of historic drilling in 66 holes, to define inferred resources of 1.384 M tonnes @ 228 gpt Ag, 0.32 gpt Au (255.6 gpt AgEq) containing 10.14 M Oz Ag, 14,000 Oz Au. “The resource estimate contains information from the historic Dios Padre silver mine only and does not include any information from the recent discovery hole REG 22-01 which contained an intercept of 35.8 metres of 6.84 g/t gold, 0.88% copper and 21.82 g/t silver”.
  • GoGold Resources Inc. released the results of eight holes from El Favor East deposit within Los Ricos North project in Jalisco. Highlighted core length intervals comprise 84.5 m @ 0.24 gpt Au, 79 gpt Ag; 44.8 m @ 0.30 gpt Au, 111 gpt Ag (including 17.3 m @ 0.71 gpt Au, 225 gpt Ag); 7.8 m @ 0.45 gpt Au, 190 gpt Ag; 19.9 m @ 0.59 gpt Au, 392 gpt Ag (including 5.0 m @ 1.97 gpt Au, 1,300 gpt Ag, which includes 1.2 m @ 6.48 gpt Au, 3,722 gpt Ag); 18.3 m @ 0.21 gpt Au, 97.4 gpt Ag; 35.2 m @ 0.18 gpt Au, 130 gpt Ag. “El Favor is located approximately 800 meters along strike to the east of the El Orito deposit. The combined systems cover approximately 2.9km in mineralized strike length over a 3.7km distance”.
  • Excellon Resources Inc. filed a preliminary economical assessment on La Negra project in Queretaro. The report summarizes the mineral resource estimate with 2.46 M tonnes @ 64 gpt Ag, 1.95% Zn, 0.50% Cu, 0.27% Pb, containing 5.1 M Oz Ag, 105.8 M Lb Zn, 27.1 M Lb Cu, 14.6 M Lb Pb in indicated resources and 6.42 M tonnes @ 80 gpt Ag, 1.80% Zn, 0.40% Cu, 0.65% Pb, containing 16.5 M Oz Ag, 254.8 M Lb Zn, 56.6 M Lb Cu, 92.0 M Lb Pb as inferred resources. The PEA envisages 7.4 years of mine life processing 6.22 M tonnes averaging 63 gpt Ag, 1.5% Zn, 0.4% Cu, 0.4% Pb at a daily rate of 2,500 tonnes.

ON DEALS AND CORPORATE ISSUES

  • Defiance Silver Corp. restructured the option agreement to acquire the 2.5% NSR at the Tepal project in Michoacan with Minera Tepal S.A. de C.V. “The company is making a payment of US $100,000 to defer all payments until June 30, 2024, at which time the remaining payment schedule will resume”.
  • Excellon Resources Inc. announced on January 9, 2023 a definitive acquisition agreement with Orion Resource Partners on the acquisition of the permitted, past-producing mine of La Negra, in Queretaro. The deal involves the payment on US$50 M paid through an upfront payment in shares of Excellon totaling US$20 M upon closing of the acquisition and a further US$30 M of deferred, “contingent consideration payable in common shares of the Company or in cash at the Company’s option, following the restart of commercial production”. La Negra property counts with 2.46 M tonnes @ 64 gpt Ag, 1.95% Zn, 0.50% Cu, 0.27% Pb, containing 5.1 M Oz Ag, 105.8 M Lb Zn, 27.1 M Lb Cu, 14.6 M Lb Pb in indicated resources and 6.42 M tonnes @ 80 gpt Ag, 1.80% Zn, 0.40% Cu, 0.65% Pb, containing 16.5 M Oz Ag, 254.8 M Lb Zn, 56.6 M Lb Cu, 92.0 M Lb Pb. The current PEA envisages 7.4 years of mine life processing 6.22 M tonnes averaging 63 gpt Ag, 1.5% Zn, 0.4% Cu, 0.4% at a daily rate of 2,500 tonnes.   
  • Xali Gold Corp. signed a binding letter of intent with Minera Cinco Reales S.A. de C.V. on the San Dieguito de Arriba plant in Nayarit. Xali will have the right to receive 15% of the net profits from any mineral that is processed at the plant, or minimum payments of US$10 K in the fourth month from the signing, US$20 K on the fifth month, US$30 K on the sixth month, US$40 k on the seventh to tenth months, US$50 K from month eleven on. Before the fourth month, Xali should receive US$6.5 K on January 30th, US$6.5 K on February 27th, US$6.5 K on March 22nd. “Upon the execution of this Agreement, MCR will act as the only operator of the plant and will have the exclusive option to obtain permits and refurbish the plant and equipment to operational status and to manage and operate the SDA plant for their benefit for an initial period of 14 months …… Minera Cinco Reales operates several mines and processing plants (150 to 300 tonnes per day) in Northern and Central Mexico producing gold, silver, copper, lead and zinc”.

ON SOCIAL RESPONSIBILITY

  • First Majestic Silver was awarded the prestigious “Silver Helmet Award” in the category of “Underground Mining of More Than 500 Workers” by the Mining Chamber of Mexico for its outstanding performance in occupational safety and health on its Santa Elena operations in Sonora.

On the image below: Tectonic breccia in granitic rock sealed by fine grained darker intrusive on a copper project in the Sonoran Desert. Picture by Abraham López.

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

/ Gambusino Prospector / Leave a comment

By Jorge Cirett

During the 1st week of the year (January 2nd to January 8th, 2023), 11 companies working in Mexico released news on their properties. No companies posted on exploration of non-advanced properties, one company posted on Q4 2022 production figures (that’s fast reporting!), no companies reported financing news. Seven companies informed on work at their advanced properties, including three that released drilling results. One mining company is dealing with uncertainty on operation rules, as SEMARNAT insists on not upholding previously emitted permits. Another company informed on an extension to an agreement for the processing of tailings. ON MEXICO ISSUES, no relevant news. ON EXPLORATION, no relevant news. ON MINING, Bear Creek Mining presented production figures for the Mercedes mine in Sonora. ON FINANCING, no relevant news. ON RESOURCES AND DEVELOPMENT, Zacatecas Silver filed a technical report with their initial mineral resource estimate for the Esperanza project in Morelos. Aztec Minerals updated on 2022 work at Cervantes in Sonora, and plans for 2023. GoGold Resources provided an outlook for work at Los Ricos Sur and Los Ricos Norte projects in Jalisco during 2023. Impact Silver released drilling results from two new veins in Zacualpan, Estado de Mexico. Avino Silver released drilling results from the Avino vein in Durango. Bendito Resources is to perform a reverse circulation drilling campaign at several targets on its El Alacrán project in Sonora. Minera Alamos filed a PEA on the Cerro de Oro project in Zacatecas. ON DEALS AND CORPORATE ISSUES, Fortuna Silver received notice from SEMARNAT on the re-assessment of the environmental impact authorization for the San Jose mine in Oaxaca. Xali Gold extended the production earn-in agreement with Sun River on the Tailings Project at El Oro, in Estado de Mexico. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • No Relevant News.

ON EXPLORATION

  • No Relevant News.

ON MINING

  • Bear Creek Mining Corp. presented production figures for Q4 2022 from its Mercedes mine in Sonora. During the period, 13,710 Oz au, 40.2 K Oz Ag were produced, and a new high-grade vein was discovered at the Marianas zone. “Development work is ongoing in the Marianas, Rey de Oro and San Martin zones. There are approximately 80 meters of development required in Marianas to establish underground drilling station, Bay 5, and prepare for ore production from this zone”. Highlighted core length intercepts comprise 0.8 m @ 89.1 gpt Au, 192 gpt Ag; 3.5 m @ 5.8 gpt Au; 3.6 m @ 13.1 gpt Au in new veins and 0.9 m @ 26.2 gpt Au, 23 gpt Ag in an extension to a known vein.

ON FINANCING

  • No Relevant News.

ON RESOURCES AND DEVELOPMENT

  • Zacatecas Silver Corp. filed a Ni-43-101 compliant technical report supporting the initial mineral resource estimate at the Esperanza project in Morelos. The resources consist of 30.3 M tonnes @ 0.92 gpt Au, 8.6 gpt Ag in pit-constrained measured and indicated resources containing 899 K Oz Au, 8.4 M Oz Ag, and 270 K tonnes @ 1.58 gpt Au, 11.0 gpt Ag in out of pit measured and indicated resources containing 14 K Oz Au, 96 K Oz Ag. Pit-constrained inferred mineral resources stand at 8.3 M tonnes @ 0.86 gpt Au, 14.7 gpt Ag, containing 229 K Oz Au, 3.9 M Oz Ag and out of pit inferred mineral resources stand at 479 K tonnes @ 1.77 gpt Au, 11.8 gpt Ag, containing 27 K Oz Au, 182 K Oz Ag. The resource estimate was calculated with 69,924 m of drilling in 399 holes, of which 341 intersect the modelled resource.
  • Aztec Minerals Corp. updated on work completed in 2022 and its outlook for 2023 at the Cervantes project in Sonora. During the year ownership interest of the Cervantes project was consolidated to 100%, two phases of drilling were completed continuing to expand the area with broad widths of oxide mineralization. For 2023 surface mapping and channel sampling are to be conducted on the first quarter to continue with step out drilling on the California target and additional targets.
  • GoGold Resources Inc. provided an outlook for 2023 at its Los Ricos North and Los Ricos Sur properties in Jalisco. Continued aggressive drilling at Los Ricos South is planned, with the goal of producing an updated mineral resource estimate and a preliminary economic assessment (PEA) including the effects of drilling at the Eagle concession, underground exploration and development and the completion of a pre-feasibility study (PFS). At Los Ricos Norte the company will work to complete the preliminary economic assessment (PEA). GoGold “holds 45 concessions covering over 25,000 hectares in the Los Ricos district”.
  • Impact Silver Corp. released significant results from surface drilling in 2022 at the Royal Mines of Zacualpan area in Estado de Mexico. Core-length results from La Luz and San Antonio greenfields targets with man portable diamond rigs comprise 1.70 m @ 227 gpt Ag, 0.2% Pb, 0.2% Zn; 0.77 m @ 113 gpt Ag, 1.0% Pb, 2.8% Zn; 1.68 m @ 239 gpt Ag; 1.60 m @ 0.6% Pb, 2.5% Zn; 3.85 m @ 0.51 gpt Au, 18 gpt Ag, 0.6% Pb, 2.3% Zn; 1.25 m @ 0.15 gpt Au, 85 gpt Ag, 0.5% Pb, 1.7% Zn; 2.18 m @ 0.30 gpt Au, 38 gpt Ag, 0.3% Pb, 2.0% Zn; 3.50 m @ 1.59 gpt Au, 22 gpt Ag, 0.1% Pb, 1.0% Zn; 2.30 m @ 0.42 gpt Au, 11 gpt Ag, 0.2% Pb, 6.2% Zn; 1.95 m @ 30 gpt Ag, 2.6% Pb, 1.9% Zn; 1.35 m @ 35 gpt Ag, 2.8% Pb, 4.2% Zn; 1.54 m @ 0.24 gpt Au, 24 gpt Ag, 0.4% Pb, 2.8% Zn; 3.0 m @ 1.90 gpt Au, 11 gpt Ag, 0.3% Pb, 0.7% Zn. “Drilling is continuing with IMPACT’s underground rig in the Mina Grande mine located in the Cuchara area and field exploration is continuing on multiple targets”.
  • Avino Silver & Gold Mines Ltd. released drilling results on four holes from below the deepest current level at the Avino mine in Durango. This drilling extends downdip 315 m the Avino Vein, to 800 m of known downdip length to 600 m below the surface. Highlighted true-width drill intervals comprise 16.66 m @ 0.03 gpt Au, 26 gpt Ag, 1.63% Cu (including 8.57 m @ 0.04 gpt Au, 34 gpt Ag, 2.49 gpt Cu); 23.64 m @ 0.06 gpt Au, 23 gpt Ag, 0.34 % Cu; 5.82 m @ 0.23 gpt Au, 22 gpt Ag, 0.36% Cu; 1.10 m @ 2.46 gpt Au, 9 gpt Ag, 0.3% Cu; 3.0 m @ 0.38 gpt Au, 13 gpt Ag, 0.72% Cu. An updated mineral resource estimate is scheduled for Q1 2023. “The Property contains numerous low-sulphidation epithermal veins (including the Avino vein), breccias, stockworks, and silicified zones that grade into a possible ´near porphyry´ environment within a large caldera setting…… The direction of the increasing copper grade plunges towards the east in the Avino vein. The changing tenor of the mineralization could be reflecting a transition from epithermal to porphyry-style mineralization”.
  • Bendito Resources Inc. is to commence drilling on the second week of the year at its Alacrán project in Sonora. Approximately 2,000 m of reverse circulation drilling on the southern extension of Loma Bonita (Au) and Mesa de Plata (Ag) towards the San Simón target, with some copper targets also to be tested. “The additional drilling on Gregors will help with the understanding of the copper mineralization and the porphyry to-epithermal transition interpreted for Alacrán…. Phase 1 drilling program is designed to target geophysical anomalies derived from induced polarization, EM and magnetic helicopter surveys that indicate the presence of sub-horizontal silica layers with steeply dipping and high-grade hydrothermal breccia feeders”. Other goals include the step-out drilling near previous high-grade copper intercepts on chalcopyrite rich hydrothermal breccia.
  • Minera Alamos Inc. filed the preliminary economic assessment (PEA) and mineral resource estimate for the Cerro de Oro project in Zacatecas. The project envisages an 8.2 year mine life on initial mineable 59 M tonnes @ 0.37 gpt Au, mined at 20 K tonnes per day to produce 60 K Oz Au per year during the first four years and a total of 477 K Oz Au on the mine life, with an average all-in sustaining cost (AISC) of US$873 per Oz Au. Other figures include a waste/ore ratio of 0.3, a pre-production cost of $28.1 M and an 11 months payback period. 

ON DEALS AND CORPORATE ISSUES

  • Fortuna Silver Mines Inc. reports that it has received notice of a resolution by SEMARNAT (Environmental Regulator) on which informs that SEMARNAT is re-assessing the 12-year extension to the environmental impact authorization for the San Jose mine in Oaxaca, granted in December 2021. “Subsequent to the grant of the EIA Extension on December 16, 2021, SEMARNAT suggested that it had made a typographical error in the EIA Extension and that the correct term was two years……. Minera Cuzcatlan initiated legal proceedings to challenge and revoke the alleged typographical error, and on November 7, 2022, the Company announced that the Mexican Federal Administrative Court had issued a judgment in favour of the Company and re-confirmed the term of the EIA Extension for the San Jose Mine for a period of 12 years”.
  • Xali Gold Corp. extended the production earn-in agreement with Sun River Gold Corp. on the El Oro Tailings project in Estado de Mexico, in exchange for additional advanced Net Profits Interest (NPI) payments. The third extension on the expiry date to the end of December 2023 is under the following terms: continuation of advanced NPI payments of US$15 K per month, advanced payments of US$35 K in January 2023, US$50 K in June 2023, US$75 K within 20 days of receiving financing for construction. If an additional 6 months is required and Xali Gold is satisfied with permitting status, then a US$75 K is to be made. As part of the second extension previously granted Xali Gold will also receive advanced NPI payments of US$50 K per month for the first year of commercial operations and 5% NPI payments subsequently, and “the first $1.5M of the Municipality NPI owing to Xali Gold will now be paid during the first 3 years of operation”. The Tailings Project at El Oro contains an inferred resource of 1.27 M tonnes @ 2.94 gpt Au, 75 gpt Ag, containing 119,900 Oz Au, 3.06 M Oz Ag.

ON SOCIAL RESPONSIBILITY

  • No Relevant News.

On the image below: Historic tunnel on a copper project in the Sonoran Desert. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the Fifth Week of December, 2022.

/ gambusinoprospectormexico / Leave a comment

Ginguro texture in banded quartz vein-breccia

By Miguel A Heredia

During the 52nd week of the year (December 26th to January 1st, 2022), at least 9 press releases were announced by companies working in Mexico, and 1 news published by the media with three disclosing deals and corporate issues, two informing on exploration results, two  reporting resources and developments of their properties, and two announcing financing issues. ON MEXICO ISSUES, Mining in Mexico closed 2022 with more expenses in exploration due to lack of mining concessions. ON EXPLORATION, In Sonora, Tocvan provided an annual summary of the activities carried out in 2022 at its Pilar and Picacho properties. In Chihuahua, Mammoth provided a year-end update on activities developed at its Tenoriba project. Zacatecas Silver provided a summary of the 2022 exploration activities developed at its Zacatecas Silver and Esperanza projects located in Zacatecas and Morelos States respectively. ON MINING, no relevant news. ON FINANCING, Guanajuato Silver closed the first tranche of its non-brokered private placement for gross proceeds of CAD $6.8M (El Cubo, San Ignacio, and Valenciana mines, Guanajuato). Regency completed a non-brokered private placement for gross proceeds of CAD $2,159,000 (Dios Padre Project, Sonora). ON RESOURCES AND DEVELOPMENT, MAG Silver reported that final testing of the downstream power distribution and control systems at its Juanicipio project in Zacatecas is now complete. Zacatecas Silver provided a summary of the 2022 exploration activities developed at its Zacatecas Silver and Esperanza projects located in Zacatecas and Morelos States respectively. ON DEALS AND CORPORATE ISSUES, Sierra Madre provided an update on its proposed acquisition of the La Guitarra mine in the State of Mexico. Gatos Silver provided a bi-weekly default status report in accordance with National Policy 12-203 – Management Cease Trade Orders (Cerro Los Gatos mine, Chihuahua). Mammoth announced the issuance of 2,206,000 common share stock options to directors, officers, and contract employees, exercisable at a price of $0.05 per common share (Tenoriba project, Chihuahua).   ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUE

  • Mining in Mexico closed 2022 with more expenses in exploration due to lack of mining concessions. The current administration of President Andres Manuel Lopez Obrador has not approved new mining concessions, which has led mining companies to invest more in exploration, with a view of finding new deposits in previously granted ground. In 2018, the concessioned area for mining activities in Mexico was of 10.64%, a figure that by the end of this 2022 stands at 8.59%, according to data from the Ministry of Economy.

ON EXPLORATION

  • Tocvan Ventures Corp., provided an annual summary of the activities carried out in 2022 at its Pilar and Picacho properties in Sonora. At Pilar project, the company executed the first core drilling program  which was successful in intersecting broad gold mineralization across the Main Zone with one hole returning 1.2 g/t Au over 116.9m, including 12 g/t Au over 10.2m, an a second hole returning 0.8 g/t Au over 108.9m, including 7.6 g/t Au over 9.4m. “Infill and recognizing drilling at Pilar has confirmed that gold mineralization occurs in at least three parallel zones to the Main Zone across a 600m wide area and so far defined along 600m of strike, the same that based on surface indications and historic workings seems to continue for another 600m towards the southeast”. Column Leach studies from surface material at Pilar returned above regional average recovery for gold, reporting over 85% recovery from initial metallurgical testing. At El Picacho property, surface work outlined key target areas across the large 24 square-km project area. An initial drill program was completed at its San Ramon Prospect, but results are pending to be released. 
  • Mammoth Resources Corp., provided a year-end update on activities developed at its Tenoriba project, Chihuahua. Highlights include the report of the final six drill holes of a 27-hole diamond drill program for a total of 3,244.25m. To date, Mammoth has drill-tested five targets zones within three project areas: El Moreno, Masuparia, and Carneritos, with 55 holes totalling 8,158.25m. “These project areas measure from hundreds of meters to over 1 km in strike length, along a 4km, east-west trend of gold-silver mineralization identified in 3-D modelling incorporating data from over 3,000 soil, chip and channel samples, 26 prior diamond drill holes, geological and structural mapping, and the potential continuity at depth of surface mineralization as indicated by an Induced Polarization/Magnetometer (IP/Mag) geophysical survey”.  The company is currently conducting additional studies on the results of the 27 holes, including metallurgical testing, as well as the assessment by a third party resource modelling expert to recommend drill spacing to estimate a maiden mineral resource at the Tenoriba project. The company is also working on a technical report to communicate findings, conclusions, and recommendation for future work. 

ON MINING

  • No relevant news.

ON FINANCING

  • Guanajuato Silver Company Ltd., issued a total of 15,952,196 units at a price of CAD $0.425 per unit to close the first tranche of its non-brokered private placement for gross proceeds of CAD $6.8M. Net proceeds will be used to ramp up production at the Company’s existing mines in and about Guanajuato, Mexico including El Cubo, San Ignacio and Valenciana, expand and modernize the processing facilities at the Topia mine in Durango, Mexico, increase brownfields’ exploration programs, and fund general and administrative expenses. The closing of a second tranche of the Offering is expected to occur on or about January 12, 2023.
  • Regency Silver Corp., completed a non-brokered private placement of 10,795,000 common shares at a price of CAD $0.20 per share for gross proceeds of CAD $2,159,000. The company paid a finder´s fee of CAD $16K in cash in connection with part of the closing of the private placement.  Net proceeds will be used for work programs on the properties of Regency Silver including drilling and geophysics in early January 2023 on our flagship Dios Padre property, for property payments on other properties of the Company and for general working capital.

ON RESOURCES AND DEVELOPMENT

  • MAG Silver Corp., received confirmation from Fresnillo plc that final testing of the downstream power distribution and control systems at its Juanicipio project in Zacatecas is now complete. The entire system has now been energized and Juanicipio has been connected to the national power grid.
  • Zacatecas Silver Corp., provided a summary of the 2022 exploration activities developed at its Zacatecas Silver project in Zacatecas State, and Esperanza project in Morelos State. At Zacatecas project, the company filed a NI 43-101 technical report to support its initial Mineral Resource Estimate on the Panuco Vein located within the Zacatecas Silver project. After filing the technical report, the company reported multiple high grade silver intercepts from drilling in an area north of the resource, named Panuco North and in an area of the property named El Cristo, which is an extension of the prolific Veta Grande Silver Vein on the Zacatecas Silver Property. At Esperanza project, the company completed an initial Mineral Resource Estimate outlining a high grade oxide gold deposit with significant exploration potential, and reported that a Pre-Feasibility Study is underway to support high margin, high grade, low capex, and low cost production. In addition, the company announced that multiple community programs continue to function and grow, including projects relating to health, education, and environment.

ON DEALS AND CORPORATE ISSUES

  • Sierra Madre Gold and Silver ltd., entered an arm´s length definitive agreement with First Majestic on May 25, 2022 to acquire a 100% interest in the 39,714-hectare La Guitarra mine in the State of Mexico and provided an update on its proposed acquisition. Earlier this month, shareholders voted in favour of a resolution to approve the proposed acquisition of all the issued and outstanding shares of La Guitarra Compañia Minera S.A. de C.V from Corporacion First Majestic, S.A. de C.V., in exchange for 69,063,076 common shares of the company at a deemed price of CAD $0.65 per Consideration Share, having an aggregate value of CAD $44,890,999 (USD $35M). The ordinary resolution with respect to the transaction was approved by 99.99% of the votes cast by shareholders. The transaction has been conditionally accepted by the TSX Venture Exchange.
  • Gatos Silver Inc., provided a bi-weekly default status report in accordance with National Policy 12-203 – Management Cease Trade Orders (MCTO). Pursuant to National Policy 12-203, the company must file bi-weekly status reports in the form of further news releases during the period from the Notice until the MCTO is revoked. “The company reports that since the Notice: (i) there have been no material changes regarding the information contained in the Notice that have not been disclosed in a bi-weekly default status report or in a news release referenced therein; (ii) there have been no failures by the company in fulfilling its stated intentions with respect to satisfying the provisions of the alternative information guidelines under NP 12-203; and (iii) there has not been any specified default subsequent to the defaults announced in the Notice and the news releases dated May 13, 2022, August 5, 2022 and November 11, 2022”.  (Cerro Los Gatos mine, Chihuahua).
  • Mammoth Resources Corp., announced the issuance of 2,206,000 common share stock options to directors, officers, and contract employees, exercisable at a price of $0.05 per common share (Tenoriba project, Chihuahua).

ON SOCIAL RESPONSIBILITY

  • No relevant news.

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

On the picture above, ginguro texture in a banded quartz vein-breccia from an intermediate sulphidation epithermal system in a project in Zacatecas, Mexico.  Photo by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the Second Week of December 2022

/ Gambusino Prospector / Leave a comment

By Jorge Cirett

During the 49th week of the year (December 5th to December 11th, 2022), 15 companies working in Mexico released news on their properties. Two companies posted exploration updates on their properties, two more companies informed on private placements, while one signed a concentrate pre-payment facility and two companies updated on work at its advanced properties. On a busy week for deals, four companies announced agreements on the purchase of five properties.  ON MEXICO ISSUES, a tit for tat of declarations between the Secretaría de Economía and Camimex reflected the state of affairs between the government and the mining industry for the last four years. ON EXPLORATION, in Sonora, Colibri Resource recommenced drilling at Evelyn. In Jalisco, Almadex Minerals released drilling results at San Pedro. ON MINING, no relevant news. ON FINANCING, Prismo Metals and Silver Viper informed on their private placements for $3 M and $335 K respectively. Guanajuato Silver Company informed on a new $5 M concentrate pre-payment facility. ON RESOURCES AND DEVELOPMENT, Torex Gold released drilling results from El Limón Sur Deep drilling, including the highest grade-m interval for Mexico so far in the year. Endeavour Silver released a new resource estimate for its La Pitarrilla project in Durango. ON DEALS AND CORPORATE ISSUES, Argonaut Gold and Heliostar Metals signed agreements for the purchase of the Ana Paula and San Antonio projects, in Guerrero and Baja California Sur respectively. Prime Meridian Resources optioned the Chuin project in Sonora from private vendors. Capitan Mining optioned from Fresnillo PLC a mining concession adjacent and in projection of mineralization at its Cruz de Piedra project in Durango. Golden Tag Resources is to acquire First Majestic Silver’s La Parrilla project in Durango. ON SOCIAL RESPONSIBILITY, one company informed on the receipt of an award in environmental and sustainability compliance.

ON MEXICO ISSUES

  • According to IMSS (Instituto Mexicano del Seguro Social) there are 421,833 mining industry direct employees in Mexico, same that in 2021 generated 2.5% of the GDP, or 34,782 million pesos (US$16.5 billion dollars). The country is within the ten top producers of fluorite, sodium sulfate, wollastonite, celestite, lead, molybdenum, barite, diatomite, magnesium sulfate, zinc, salt, gypsum, cadmium, gold, feldspar and copper, and the top silver producer during the last 13 years. Workers in the industry earn an average of 23,366 pesos per month.     
  • Camimex (Cámara Minera de México) expects Mexico’s investment in mining to surpass US$5 billion (5,000 million pesos). Jaime Gutiérrez, president, pointed that it occurs under the contrast of high metal prices and national policy regulatory hurdles. Karen Flores, director, expressed that the risk in mining is major in exploration, diminishing as the project advances to the mining stage. Another obstacle is the discretionary granting of permits, highlighting the need of a clear and objective decision-making process. Stressed also was the need to have public policies that favor the investments in clean energies, as these are crucial for the competitiveness of the country.
  • Raquel Buenrostro, head of the Economy Secretariat (Secretaría de Economía or SE) indulged herself in a barrage of accusations to the mining industry, pointing that it pays nearly zero taxes in proportion to its earnings, and is one of the industries with more corruption related to the Secretaría de Economía. She indicated that this is one of the reasons why the government has not granted mining concessions for the last four years, further adding that mining companies are no innocent entities, having problems the World around. “After hydrocarbons, the strongest smuggling is that of mining” she stressed, “more than textiles, shoes and clothing”. According to her numbers, mining companies pay 0.002% of its total earnings, compared to 2.4% of major contributors or between 30 and 35% for employees. She also commented on the case of a foreign company that using a twisted argument decided not pay taxes for ten years, while the case if reviewed by the Supreme Court. “Concessions, concessions and concessions were granted, some without complying with the law, some granted more than once, and those who have concessions do not comply with the obligations that should be covered…. the problem of corruption is strong, and I believe that this is one of the areas with biggest corruption problems in the Secretaría de Economía (Note of editor. The points of view of Raquel Buenrostro mimic those of the president, Andrés Manuel López Obrador, which is strongly critical of all private industries, including mining. More than a decade ago, while bidding for the presidency, he had expressed that no mining concessions were to be issued under his term. He’s true to his word, at least in this respect).
  • Camimex (Cámara Minera de México) replied to Raquel Buenrostro, Secretary of Economy (See above) that the companies affiliated to the entity comply in time with its fiscal obligations, including special taxes that only miners pay. The mining industry conveys more resources for the federal coffers than other productive sectors, according to information from the Secretaría de Hacienda y Credito Público. Camimex argues that its enterprises generate more than 400 K direct jobs, and 2.6 M indirect jobs, with an average salary that is 37% higher than the national one. Also, studies by UNAM (Universidad Autónoma de México) show that the municipalities and localities with mining activity have greater levels of economic and human development than the national average. The letter ended “We miners are proud of our activities, the responsible and committed companies in Camimex will continue contributing to the economic development and social wellbeing in the country. We reiterate our commitment and absolute will and interest to establish the dialogue and collaboration with the authorities that are conducive to the strengthening of the sector and the country”.

ON EXPLORATION

  • Colibri Resource Corp. re-commenced phase-2 reverse circulation drilling at the Evelyn property in Sonora. Five holes are planned with 2,000 m of drilling to test induced polarization targets from the 2021 geophysical survey, a second objective is to explore under extensive alluvial cover drilling a number of short holes and sample the top of the bedrock. A soil sampling program has been recently completed, and samples sent for “Gas Soil Hydrocarbon” testing.
  • Almadex Minerals Ltd. released drilling results from its first hole at the San Pedro project in Jalisco. The highlighted core length interval is 4.51 m @ 657 gpt Ag, 0.03 gpt Au (including 2.0 m @ 1,090 gpt Ag, 0.07 gpt Au). Almadex describes a breccia with silicified fragments in sericitic alteration, with galena and sphalerite occurring in the matrix and in fragments. These characteristics point to an intermediate sulfidation epithermal system, although other options have not been ruled out at this stage. “The San Pedro project covers a large area of acid sulphate alteration, including zones previous described as vuggy silica. Recent Terraspec analysis indicates sericitisation superposed on propylitic alteration in the mineralised zones with acid sulphate alteration occurring at the north”.

ON MINING

  • No Relevant News.

ON FINANCING

  • Prismo Metals Inc. announced that the private placement for up to $3 M has been fully allocated.  (Palos Verdes, Sinaloa).
  • Guanajuato Silver Company Ltd. signed a new concentrate and pre-payment facility with Ocean Partners Ltd., to provide a US$5 M revolving credit facility for operating and working capital purposes. GSilver also completed its previously announced shares-for-debt transaction to settle C$1.13 M (El Cubo, Guanajuato).
  • Silver Viper Minerals Corp. closed the first tranche of its $2 M private placement announced in November, for aggregate gross proceeds of $334.6 K (La Virginia, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Torex Gold Resources Inc. reported assays results from step-out and infill drilling at El Limón Sur, targeting underground mineralization as well as open pit mill feed at its El Limón Guajes mine complex in Guerrero. Highlighted core length results comprise 15.96 m @ 87.60 gpt Au, 15 gpt Ag; 0.15% Cu (including 4.46 m @ 163.51 gpt Au, 21 gpt Ag and 3.82 m @ 166.94 gpt Au, 23 gpt Ag, 0.20% Cu); 22.81 m @ 25.31 gpt Au, 122 gpt Ag, 3.45% Cu (including 3.00 m @107.63 gpt Au, 259 gpt Ag, 6.18% Cu); 20.52 m @ 9.49 gpt Au, 63 gpt Ag, 0.21% Cu; 18.72 m @8.10 gpt Au, 24 gpt Ag, 0.95% Cu; 9.90 m @ 15.19 gpt Au, 43 gpt Ag, 0.56% Cu; 17.85 m @ 13.39 gpt Au (including 2.25 m @ 90.05 gpt Au); 7.70 m @ 22.99 gpt Au, 8 gpt Ag, 0.18% Cu; 3.99 m @ 43.24 gpt Au, 25 gpt Ag. These strong results add the El Limón Sur Deep to the previously identified potential mining front at Sub-Sill South. “The style of mineralization at El Limón Sur Deep is like Sub-Sill and ELD, and is characterized by gold, with locally high silver and copper grades. Gold occurs in variably sulfidized, pyrrhotite-rich skarn, while silver and copper mineralization is controlled primarily by the degree of sulfidation of the host skarn. Mineralization is mainly associated with retrograde alteration characterized by the occurrence of phlogopite, amphibole, chlorite, calcite and lesser amounts of quartz and epidote, and local magnetite”.
  • Endeavour Silver Corp. filed a NI-43-101 technical report with a resource estimate for the recently acquired (July 2022) La Pitarrilla project in Durango. Total indicated resources, open pit and underground, oxide and sulfide, stand at 158.6 M tonnes @ 96.4 gpt Ag, 0.31% Pb, 0.74% Zn, containing 491.6 M Oz Ag, 1.1 billion Lb Pb, 2.6 billion Lb Zn or 693.9 M Oz AgEq. Inferred resources, open pit and underground, oxide and sulfide, comprise 35.4 M tonnes @ 87.2 gpt Ag, 0.36% Pb, 0.85% Zn, containing 99.4 M Oz Ag, 281 M Lb Pb, 662 M Lb Zn or 151.2 M Oz AgEq.

ON DEALS AND CORPORATE ISSUES

  • Argonaut Gold Inc. entered into a binding purchase agreement with Heliostar Metals Ltd. for the sale of the Ana Paula project in Guerrero. The deal involves a cash payment of US$10 M at closing, US$5 M in Heliostar shares when either an extension to the current mining permit or a new underground mining permit is granted, US$2 M on the completion of a feasibility study (FS), US$3 M in cash and US$2 M in shares on construction announcement and US$5 M in cash and US$3 M in Heliostar shares on announcement of commercial production.
  • Argonaut Gold Inc. entered into an option agreement with Heliostar Metals Ltd. for the sale of the San Antonio project in Baja California Sur. Heliostar is to pay Argonaut US$80 M if the gold price is below $1,800 per ounce for the six months preceding the exercise of the option, US$120 M if the price is in the US$1,800 to US$2,000 per ounce range in the same period, or US$150 M if the gold price is above US$2,000 per ounce in the said period. A 2.0% NSR is to be paid to Argonaut if the option is exercised. The term of the option is for three years, that can be extended for 18 months if Heliostar is able to acquire an environmental permit from SEMARNAT, the environmental regulator (Note of editor. – which is unlikely to occur on this presidential term, ending in 2024).
  • Prime Meridian Resources Corp. executed two letters of intent for the option to purchase up to 100% interest in the 3,792-hectare El Chuin copper project in Sonora. The project encompasses an interpreted porphyry copper target, with small scale mine workings developed in veins, disseminations and replacement style mineralization. The main target areas are Samaniego, La Gloria and Nogales. The option envisages the payment of US$30 K on year one, US$50 K and 250 K shares on year two, US$50 K and 500 K shares on year three, US$50 K and 1 M shares on year four and US$50 K and 1.5 M shares on year five, for a total of US230 K and 3.25 M shares, plus US$2.22 M of investment on the property. The current property owner retains a 1% NSR that can be bought for US$1.5 M. A second purchase option requires the payment prior to the 5th year anniversary of US$250 K for the La Gloria concession, US$250 K for La Gloria II concession and US$1 M for the Nino Luis concessions. “The El Chuin concessions are currently not in good standing and PMR will be obliged to bring the concessions to good standing. No payments to the vendors will be made prior to obtaining good standing for the concessions”.
  • Capitan Mining Inc. executed an option agreement with Fresnillo PLC to acquire 100% interest in mineral rights to a key property at the Cruz de Plata project in Durango. The high-grade silver trend owned by Capitan is now 2.5 km in length, including extensions and targets on the Jesus Maria, San Rafael, El Tubo, El Refugio and Teresa veins. The optioned land holds 2,000 m of historic drilling in five holes with highlighted core length intervals of 1.0 m @ 233 gpt Ag, 0.1%Pb; 5.2 m @ 185 gpt Ag, 0.29 gpt Au, 0.90% Pb, 1.7% Zn; 29.0 m @ 55 gpt Ag, 0.14 gpt Au, 0.2% Pb, 0.6% Zn (including 1.3 m @ 284 gpt Ag, 0.43 gpt Au, 1.6% Pb, 5.5% Zn); 6.3 m @ 94 gpt Ag, 0.2% Pb, 0.4% Zn; 4.7 m @ 54 gpt Ag, 0.7% Pb, 1.2% Zn; 1.2 m @ 157 gpt Ag, 0.12 gpt Au, 1.1% Pb, 3.3% Zn. The deal involves a 3-year exploration agreement for the “Casco U” mining concessions, for a total of US$1.0 M over the period and 1% NSR which can be bought for US$1 M.
  • Golden Tag Resources Ltd. entered into a definitive agreement with First Majestic Silver Corp. to acquire 100% interest on La Parrilla project in Durango. The property covers 69,478 hectares, with five underground mines, an open pit and a processing plant comprising parallel 1,000 tpd flotation and 1,000 tpd cyanidation leach circuits where oxide and sulfide ores can be processed. There are 9.5 M Oz AgEq in measured and indicated historical resources and 12.5 M Oz AgEq in inferred resources. In consideration for the purchase Golden Tag will issue First Majestic US$20 M in Golden Tag shares, and US$2.7 M in the first 18 months, US$5.75 M (cash or shares) when either 5 M Oz AgEq of reserves or 22 M Oz AgEq of measured and indicated resources are declared. And US$5.05 M (cash or shares) when a new zone with a NI-43-101 report holding more than 12.5 M Oz AgEq is announced. After closing First Majestic will have the right to maintain its pro-rata interest in Golden Tag, up to 19.9% of shares.

ON SOCIAL RESPONSIBILITY

  • Hecla Mining Co. received the 2022 Environmental and Sustainability Excellence Award for its San Sebatian mine in Durango. The award by the American Exploration & Mining Association (AEMA) is in recognition by the company’s strong commitment to the highest environmental and sustainability standards.

On the image below puzzling boudin like siliceous bands in limestone on a project in the Sonoran Desert. Picture by Jorge Cirett.