Technology

2026 Critical Minerals Ministerial

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February 4, 2026

  • Today the United States, together with our partners and allies, has set out to reshape the global market for critical minerals and rare earths. Secretary of State Marco Rubio, joined by Vice President JD Vance, Treasury Secretary Scott Bessent, Interior Secretary Doug Burgum, Energy Secretary Chris Wright, and U.S. Trade Representative Ambassador Jamieson Greer, hosted representatives of 54 countries and the European Commission, including 43 foreign and other ministers, at the 2026 Critical Minerals Ministerial.
  • Delegations from the following countries attended: Angola, Argentina, Armenia, Australia, Bahrain, Belgium, Bolivia, Brazil, Canada, Cook Islands, the Czech Republic, the Democratic Republic of the Congo, the Dominican Republic, Ecuador……….

To continue reading, please click the next link:

https://www.state.gov/releases/office-of-the-spokesperson/2026/02/2026-critical-minerals-ministerial

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

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By Jorge Cirett                                             

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

ON MEXICO ISSUES

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

ON EXPLORATION

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

ON MINING

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

ON FINANCING

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

ON RESOURCES AND DEVELOPMENT

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

ON DEALS AND CORPORATE ISSUES

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

ON SOCIAL RESPONSIBILITY

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

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

The Mining and Exploration News in Mexico: Highlights on the Fifth Week of August 2023

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By Jorge Cirett                                             

During the 35th week of the year (August 27th to September 3rd, 2023), 21 companies working in Mexico posted news releases. Five companies reported on quarterly or half year 2023 results. Five companies informed on the opening or closing of private placements, one on the payment of dividends and one more on the extension of a credit facility.  One company announced results of a PEA on its property and one other is working to process a tailings polymetallic resource. A company reported high-grade drilling results from its property and one other updated on exploration activities. One company informed on its intention to acquire a porphyry copper project in Sonora, while one other updated on projects in several countries and its plans for Mexico. One royalty company informed on the indirect acquisition of an NSR from a mine in Mexico. ON MEXICO ISSUES, Xótchil Gálvez, pointed that the Mining Fund should return to mining communities. ON EXPLORATION, no relevant news. ON MINING, Impact Silver, Bear Creek Mining and Minera Alamos reported financial results for Q2 2023, and Mundoro reported first half 2023 results. ON FINANCING, Aztec Minerals (C$911.6 K), Colibri Resource, Regency Silver (C$1.5 M), Sonoro Gold (C$259.2 K) and Commander Resources ($ 346 K) informed on the opening or closing of financing rounds. Orla Mining extended its credit facility to up to $200 M and four years. Alamos Gold declared a quarterly dividend. ON RESOURCES AND DEVELOPMENT, Sonoro Gold announced a positive PEA on Cerro Caliche, Sonora. Luca Mining informed on evaluation plans to reprocess tailings at Campo Morado, Guerrero. Bear Creek Mining provided underground drilling results from Mercedes, in Sonora. Discovery Silver submitted the environmental impact assessment (MIA) for Cordero, in Chihuahua. Mammoth Resources provided an update on exploration activities at Tenoriba, in Chihuahua. ON DEALS AND CORPORATE ISSUES, Southern Empire Resources entered into an agreement with Cuprum Mining, upon which Southern can acquire 100% interest in the Suaqui Verde porphyry copper project in Sonora. Excellon Resources provided an update on its projects in different countries, including Mexico. Gold Royalty completed the acquisition of a 1.0% NSR on portions of the Cozamin mine production in Zacatecas. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • Xóchitl Gálvez, opposition senator and likely to turn into a strong presidential candidate, points that the Mining Fund should return to mining communities. The fund was created for mining to contribute to the development of the communities where the work is realized, but was funneled into a broader basket to source pensions and scholarships with electoral aims by the current president.

ON EXPLORATION

  • No Relevant News.

ON MINING

  • Impact Silver Corp. announced financial results for the second quarter 2023, reporting revenue of $5.5 M. The average mill feed at Zacualpan, in Estado de Mexico, was 163 gpt Ag, where 35.7 K tonnes were processed to produce 155.7 K Oz Ag. During the quarter Impact closed the acquisition of the Plomosas mine in Chihuahua, where a major rehabilitation program was initiated. The company completed a $9.0 M non-brokered private placement, maintains a cash balance of $13.3 M and no long-term debt.
  • Orogen Royalties Inc. reported financial results for the second quarter of 2023, including some figures on its royalties from Mexican operations. The company holds a 2.0% net smelter return (NSR) royalty on the production of First Majestic’s Ermitaño mine in Sonora. Orogen’s share of production on the quarter was $1.18 M consisting on 435 Oz AuEq, resulting from the process of 213.9 K tonnes @ 3.12 gpt Au, 39 gpt Ag, which produced 20,073 Oz Au, 142 K Oz Ag.
  • Bear Creek Mining Corp. reported its financial results for Q2 2023. During the period, 121.5 K tonnes were mined at its Mercedes mine in Sonora, 125.1 K tonnes were processed @ 2.42 gpt Au, recovering 94.53% Au to produce 9,212 Oz Au, 39,827 Oz Ag, or 10,132 Oz AuEq at cash cost $1,337 per Oz AuEq and an AISC of $1,646 per Oz AuEq. “The Mercedes mine has been inconsistent in achieving the anticipated gold grades projected in the mine plans and geological models the Company inherited upon its acquisition of Mercedes in April 2022”. Mining costs have declined by 23% in recent months and are expected to continue to reduce in the coming months due to changes in mining methods. Higher grades are to be mined from areas close to current production.
  • Minera Alamos Inc. provided an operation update for Q2 2023 and some guidance on its operations on Q3. Strip ratios were maintained below 2:1 waste vs mineralized material during mining operations, with 25% of material averaging 1.06 gpt Au being crushed and 75% of material averaging 0.43 gpt Au being sent directly to the leach pads, for an average grade of 0.59 gpt Au in the leach pads. The company expects that the precipitation levels in 2023 will allow more normal mining and production plans. Overall pad capacity is to triple if constructive communications with SEMARNAT (Environmental regulator) are fruitful. A maiden resource estimate is expected in Q3, covering the primary mineralized zones surrounding the Nicho operations. Alamos had cash and cash equivalents of $8.27 M by the end of the period. Subsequent to quarter’s end, $2.57 M ($33.2 M pesos) of VAT were returned to the company by the Mexican revenue service (SAT).
  • Mundoro Capital Inc. reported financial results for the first half of 2023. In H1 2023 the company generated $1.46 M in fees and payments. At the end of the period Mundoro held $8.4 M in cash and cash equivalents (Camargo, Chihuahua).

ON FINANCING

  • Aztec Minerals Corp. closed the first tranche of its non-brokered private placement for gross proceeds of CAD$911.6 K. “Due to investor interest in the private placement, Aztec intends to increase the financing from the original stated amount of up to CAD$1 million to up to CAD$1.2 million” (Cervantes, Sonora).
  • Orla Mining Ltd. amended its existing US$150 M credit facility with the Bank of Nova Scotia, Bank of Montreal and Canadian Imperial Bank of Commerce. The facility stays at US$150 M, with the ability to increase to US$200 M, with a 4-year term (increasing it by two years) and an interest rate will be based on the term SOFR rate, plus an applicable margin ranging from 2.50% to 3.75% based on the company’s leverage ratio at the end of each fiscal quarter. “The Amended Credit Facility is payable in full at maturity and removes quarterly mandatory repayments required under the previous term facility” (Camino Rojo Oxides, Zacatecas).
  • Colibri Resource Corp. announced an extension to complete its previously announced non-brokered private placement by September 13, 2023. “The Company is offering up to 1,000 units, each unit being comprised of: (i) a US$1,000 principal amount of 10% unsecured convertible debenture (a “Debenture”) with a maturity date (“Maturity Date”) of 2 years from the date of issuance; and (ii) 5,416 common share purchase warrants of the Company …” (Evelyn, Sonora).
  • Regency Silver Corp. will be present at the 2023 Precious Metals Summit in Beaver Creek, Colorado. Regency has arranged a non-brokered private placement of up to CAD$1.5 M in gross proceeds (Dios Padre, Sonora).
  • Alamos Gold Inc. declared a quarterly dividend of US$0.025 per common share (Mulatos, Sonora).
  • Commander Resources Ltd. closed the non-brokered private placement announced on August 3, 2023, for total gross proceeds of $346 K (Pedro, Durango).
  • Sonoro Gold Corp. closed the final tranche of its previously announced non-brokered private placement for additional gross proceeds of C$259.2 K, accruing a total of C$2.26 M (Cerro Caliche, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Sonoro Gold Corp. announced a positive preliminary economic assessment (PEA) for its Cerro Caliche project in Sonora. The scope is for nine years life of mine (LOM) 33,000 Oz AuEq per year operation to obtain 297,575 Oz AuEq on recoveries of 72% Au, 27% Ag, with a pre-Tax net present value (NPV) of US$71.4 M, a pre-Tax internal rate of return (IRR) of 59% and after-Tax NPV (at 5%) of US$47.7 M with an IRR of 45%. An initial CAPEX cost of US$15.5 M and sustaining capital of US$15.5 M are envisaged, to produce at cash cost US$1,295 per Oz AuEq and an AISC of US$1,395 per Oz AuEq with a payback period of 2.9 years.
  • Luca Mining Corp. announced the signing of a memorandum of understanding with EnviroGold Global Ltd. to process the tailings at Luca’s Campo Morado Mine in Guerrero. The scope of the project is to evaluate the reprocessing of 3.29 M tonnes @ 1.32% Zn, 0.3% Cu, 0.49% Pb, 1.57 gpt Au, 94 gpt Ag, and produce a PEA for the project. On a 2021 initial testwork with EnviroGold’s, a gold recovery of 60% was achieved. The aim of the project is to increase this gold recovery rate to levels reached by EnviroGold on the Hellyer project in Australia (also a volcanogenic massive sulfide deposit, as Campo Morado), where it achieved recoveries of 90% Au, 90% Ag by leach, and 91% Cu and 82% Zn reported to a pregnant solution suitable for subsequent recovery.
  • Bear Creek Mining Corp. provided results from underground definition and delineation drilling at its Mercedes mine in Sonora. “The Company has focused drilling on the Marianas, Rey de Oro, Diluvio and Lupita deposits, all of which are associated with near-term production; however, the results also hold significant implications for exploration upside”. Highlighted true width intercepts comprise 1.0 m @ 47.90 gpt Au, 39 gpt Ag; 5.2 m @ 62.59 gpt Au, 93 gpt Ag; 4.3 m @ 7.55 gpt Au, 28 gpt Ag; 4.4 m @ 3.53 gpt Au, 10 gpt Ag; 2.1 m @ 18.41 gpt Au, 11 gpt Ag in the Marianas zone, 1.4 m @ 21.00 gpt Au, 11 gpt Ag; 4.9 m @ 3.52 gpt Au, 53 gpt Ag; 0.9 m @ 29.30 gpt Au, 63 gpt Ag; 4.2 m @ 4.56 gpt Au, 71 gpt Ag in the Rey de Oro Zone, 0.8 m @ 22.4 gpt Au, 127 gpt Ag in the Diluvio zone and 3.4 m @ 5.46 gpt Au, 95 gpt Ag in the Lupita zone. Highlighted core-length intervals from the Diluvio zone comprise 6.7 m @ 3.24 gpt Au, 63 gpt Ag; 14.3 m @ 4.11 gpt Au, 54 gpt Ag; 6.1 m @ 3.54 gpt Au, 63 gpt Ag; 6.5 m @ 5.51 gpt Au, 45 gpt Ag; 5.1 m @ 7.11 gpt Au, 78 gpt Ag; 1.5 m @ 9.23 gpt Au, 34 gpt Ag.
  • Discovery Silver Corp. submitted for evaluation the environmental impact assessment (Manifestación de Impacto Ambiental, or MIA) for its Cordero project in Chihuahua. “The MIA is one of the principal permits required for the development of Cordero and encapsulates extensive social and environmental work programs completed by the Company’s team in Mexico since 2020 in parallel with multiple reviews by third-party consultants.”
  • Mammoth Resources Corp. provided an update on ongoing exploration activities at its Tenoriba property in Chihuahua. The objective is to evaluate how to produce a resource estimation and define the processes through which the precious metals can be recovered. These activities include: (1) metallurgical testing of oxide material from the 1.5 km by 0.5 km Carneritos area. Preliminary metallurgical tests have already been performed on material from the Masuparia area; (2) analysis of all geological information, including drill data, by an independent mineral resource modelling expert aiming for the distribution of drill holes required to produce a maiden NI 43-101 mineral resource; and (3) defining future drill hole locations upon which to achieve this mineral resource.

ON DEALS AND CORPORATE ISSUES             

  • Southern Empire Resources Corp. entered into an agreement with Cuprum Mining Corp. to acquire up to 100% in the share capital of Cuprum, and thereby on the Suaqui Verde copper project in Sonora. Southern can acquire 10% of Cuprum by paying C$500 K within 90 days and issuing 7.5 M shares of Southern to Cuprum shareholders. Another 10% can be acquired by paying C$250 K to Cuprum, issuing 7.5 M shares and incurring in C$750 K on exploration expenditures on or before 15 months of closing. An additional 10% can be acquired by paying $500 K and incurring in additional C$750 K in exploration on or before 30 months from closing. Additional 20% can be acquired by Southern by paying C$500 K and incurring additional C$750 K within 45 months of closing. Southern Empire can acquire an additional 50% in Cuprum by paying C$750 K and incurring in additional C$1 M (total of C$3.25 M) on or before 60 months of closing. A 2% NSR “may be payable” subsequent to commercial production. The project encompasses 1,952 hectares with oxide and secondarily enriched copper sulfide mineralization on a porphyry copper system. A resource defined with 106 historical RC and diamond holes contains 51.2 M tonnes @ 0.31% Cu in the indicated category.
  • Excellon Resources Inc. provided an update on its projects in USA, Germany and Mexico. “As the Platosa Mine was placed on care and maintenance in earlyQ4 2022, the Company is assessing its strategic options, including the potential sale of select properties or complete divestiture of the Mexico operations. The Company will provide further updates on the Mexico operations as necessary.” (Platosa, Durango).
  • Silver Tiger Metals Inc. announced the appointment of Francisco Albelais as Vice-President of Operations and Mr. Charles Spath as Vice-President of Technical Services. (El Tigre, Sonora).
  • Gold Royalty Corp. has completed the indirect acquisition of a 1.0% net smelter return (NSR) royalty on portions of the Cozamin Cu-Ag mine in Zacatecas, from Endeavour Silver Corp. Pursuant to the transaction, Gold Royalty indirectly acquired the royalty for US$7.5 M in cash consideration.

ON SOCIAL RESPONSIBILITY

  • No relevant news.

On the image below: Silicified structure ridge on a project in the Sonoran Desert. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the First Week of August, 2021

/ Gambusino Prospector / Leave a comment

By Jorge Cirett

During the 31st week of the year (August 2nd to August 8th, 2021), at least 34 press releases were announced by companies working in Mexico. To note, seven companies posted exploration advances on their properties, twelve posted on mining/quarterly reports and eight more on project development or resource definition. ON MEXICO ISSUES, No relevant news. ON EXPLORATION, in Sonora, Aztec Minerals informed on soil sampling results at Cervantes; Canuc released information on current drilling at San Javier; Silver Spruce completed a 2,485 m RC drill program at El Mezquite. In Chihuahua, Monarca Minerals obtained the drill permit for San José. In Sinaloa, Brigadier Gold discovered silver rich copper mineralization associated to a porphyritic intrusive. In Durango, Silver Wolf Exploration informed on mapping and sampling at Ana Maria. In Oaxaca, Madoro Metals informed on skarn mineralization sampling at Yautepec.    ON MINING, Excellon Resources, Starcore International, Consolidated Zinc, McEwen Mining, Equinox Gold, Torex Gold, Golden Minerals and Great Panther Mining presented quarterly reports. Equinox Gold reported the end of the illegal blockade at Los Filos. Altaley initiated a metallurgical testing program at Campo Morado. Avino Silver announced the re-start of mining operations at Avino. Guanajuato Silver is stockpiling material from El Cubo mine. ON FINANCING, Altaley Mining informed there is no reason for the decline in its stock price. ON RESOURCES AND DEVELOPMENT, Fabled Silver released drilling results from Santa Maria. Orla Mining provided high-grade drill results from the Camino Rojo sulfide deposit. Orex Minerals informed on metallurgical results from Coneto. Prime Mining reported drilling results from Los Reyes. Defiance Silver released drill results from its Zacatecas project. Mexican Gold Mining announced a positive PEA on Las Minas. Discovery Silver released drill results from Cordero. Mag Silver reported results from 2020 drilling at Juanicipio.  ON DEALS AND CORPORATE ISSUES, No relevant news. ON SOCIAL RESPONSIBILITY, No relevant news.

ON MEXICO ISSUES

  • No relevant news.

ON EXPLORATION

  • Silver Wolf Exploration Ltd. informed on exploration at its 2,549 hectares Ana Maria project in Durango. Four field geologists and a consulting senior geologist are working in the property, mapping and collecting 290 rock chip samples to date. Hyperspectral and lidar drone surveys have been carried out, and an IP geophysical program is being planned. 
  • Madoro Metals Corp. provided an update on exploration on the southern portion of the Yautepec property in Oaxaca. Skarn mineralization has returned up to 1,200 gpt Ag, 4.0% Cu, 20.0% Pb, 5.0% Zn, 45 ppm Mo, 2.74% As, 1,620 ppm Ba, 1.4 ppm Hg, 285 ppm Sb. “The skarn-hornfels complex lies just outside of the recently mapped southwestern margin of the Yautepec caldera …….. The area lies 13 kilometers distant from similar polymetallic Ag-base metal mineralization found along the eastern caldera margin at the historically identified Las Minas area”.
  • Aztec Minerals Corp. updated on exploration at its 3,649 hectares Cervantes property in Sonora. A 477-soil sample program was completed in a 100 by 100 meters grid covering 518 ha; additionally 110 rock chip samples were collected. The soil sampling returned up to 3,605 ppb Au, 1,380 ppm Cu and 52 ppm Mo, whereas the rock chip samples returned up to 21.3 ppm Au, 2,300 ppm Cu, 625 ppm Mo. The soil sampling completed in this program elevates the total covered by such a survey to 1,200 ha, or 35% of the project area.
  • Brigadier Gold Ltd. informed on a silver-rich copper discovery at its Picachos project in Sinaloa. A 110 m trench dug in the Las Colinas prospect returned results of 9.0 m @ 135 gpt Ag, 0.05 gpt Au, 0.2% Cu, 0.3% Pb, 0.1% Bi, 47 ppm W (including 2 m @ 478 gpt Ag, 0.08 gpt Au, 0.2% Cu, 0.5% Pb, 0.3% Bi). “The significance of this geological finding is that these mineralized porphyritic apophyses with associated copper and other metals may expand at depth and intensify”.
  • Canuc Resources Corp. informed on exploration advances at its San Javier project in Sonora. A drill hole targeting a magnetic high encountered massive magnetite at 343 m of depth, and is still on it at 380 m. Sphalerite, marmatite and chalcopyrite have been identified in stringers during preliminary logging, and are to be sampled. Six high-grade silver samples were sent for mineralogical studies, with most of the silver minerals consisting of halides (AgCl, AgBr, AgI, AgF) and acanthite.
  • Silver Spruce Resources Inc. announced the completion of the phase 1 reverse circulation drilling at El Mezquite in Sonora. A total of 2,485 m were drilled in twenty holes on a 400 by 600 m area. “Collars were defined by several northeast-trending veins, structural lineaments and oxide/sulphide transitions interpreted from geological mapping, precious metal assays, multi-element geochemistry, epithermal alteration assemblages and coincident 3D IP chargeability anomalies”.
  • Monarca Minerals Inc. obtained the environmental permit (Informe Preventivo) to complete its planned 5,000 m drill program at its San José project in Chihuahua. Drilling is expected to commence within the next four weeks.

ON MINING

  • Excellon Resources Inc. reported second quarter 2012 financial results. During the period 21.8 K tonnes were mined, 21.6 K tonnes milled at La Platosa, Durango, averaging 489 gpt Ag, 5.14% Pb, 6.48% Zn, recovering 87.0% Ag, 78.6% Pb, 79.4% Zn, to produce 296 K Oz Ag, 1.93 M Lb Pb, 2.46 M Lb Zn, or 489 K Oz AgEq. Cash cost was $11.96 per Ag Oz and AISC  $26.69 per Ag Oz.
  • Starcore International Mines Ltd. filed the results for the year ended April 30, 2021. During the year the San Martin mine in Queretaro milled 225.5 K tonnes @ 1.63 gpt Au, 24.7 gpt Ag, recovering 87.3% Au, 57.5% Ag, to produce 10.5 K Oz Au, 103.4 K Oz Ag, or 11.8 K Oz AuEq. The mine operating cash cost per AuEq Oz was US$1,056.
  • Consolidated Zinc Ltd. presented its quarterly activities report. Commercial production commenced at the refurbished Plomosas plant in Chihuahua, with 8,655 tonnes mined, 9,079 tonnes processed @ 15.1% Zn, 7.4% Pb, 54 gpt Ag, with recoveries of 52.5% Zn, 41.2% Pb.
  • Equinox Gold Corp. reported that the illegal community blockade at its Los Filos mine in Guerrero has been removed, and regular operations resumed on all areas.
  • Altaley Mining Corp. initiated a metallurgical testing program to increase base and precious metals recoveries at its Campo Morado mine in Guerrero. Testing by the previous operator in 2013 achieved 45-65% Au and 75-81% Ag, while current recoveries are 20% Au, 40% Ag. “The Leachox process is a partial sulphide oxidation process for the recovery of gold and silver from sulphide minerals….. but central to the Leachox process is the Aachen shear reactor. In the leach process, it enhances the kinetics and reduces reagent consumptions (oxygen, cyanide, and lime) which otherwise can be prohibitive”.
  • Avino Silver & Gold Mines Ltd. announced mining operations restarted at its Avino mine in Durango. “Management expects throughput at the mill will ramp-up quickly to levels prior to shut down. In addition, we are infill-drilling the oxide tailings resource that sits within our tailings storage facility, as well as continuing the previously reported exploration drill program”.
  • McEwen Mining Inc. reported its second quarter 2021 results, including figures from its operations in Mexico. At El Gallo, in Sinaloa, residual leaching produced 1,300 AuEq Oz from the leach pad. “The residual leaching activities at El Gallo are expected to wind down in early 2022”.
  • Equinox Gold Corp. delivered its second quarter 2021 financial and operating results, including information from its Mexican operations. During the period the acquisition of Premier Gold Mines Ltd. taking 100% control of the Mercedes mine in Sonora. Its updated production guidance for 2021 includes 120-140 K Oz Au from Los Filos and 30-35 K Oz Au from Mercedes, at cash cost of $1,590-$1,660 and $750-$800 respectively. “The primary change to gold production guidance is from Los Filos, where illegal blockades during the quarter disrupted mining activities and delayed access to higher-grade ore”. Production guidance was reduced by 50 K Oz Au due to these illegal blockades.
  • Torex Gold Resources Inc. reported financial and operational results for the second quarter 2021. During the period 118,054 Oz Au were produced, generating free cash flow of $21.9 M, taking the net cash to $191.5 M. The new mineral resource update of 3.54 M Oz AuEq at 5.27 gpt Au on indicated resources for Media Luna was released past June. The expansion of the open pit at El Limón was approved and is expected to result in the increase of 150 K Oz Au in additional production, providing a smoother transition to the Media Luna deposit mining. The Media Luna feasibility study is to contemplate a conventional mining basis, although a smaller satellite deposit could be developed with the proprietary Muckahi mining system.
  • Golden Minerals Co. provided financial results for the second quarter 2021. The company obtained a $2.5 M net operating margin related to the Rodeo mine operations in Durango., where 3,634 Oz Au were produced. The mill in Velardeña processed the Rodeo ore at a rate of greater than 500 tpd during May and June. Cash and cash equivalents were $6.9 M by the end of the quarter.
  • Great Panther Mining Ltd. announced consolidated financial results for the second quarter 2021, including figures from its Mexican operations. A total of 56 K tonnes were milled in Mexico averaging 327 gpt AgEq.
  • Guanajuato Silver Company Ltd. is stockpiling ore from El Cubo mine in Guanajuato in advance of the recommencement of operations at El Cubo mill. The mineralized material is coming from the 2175, 1850 and Cebolletas stopes, which are summarized as the Villalpando stopes, same that will provide most of the material for the operation of the plant in the immediate future.

ON FINANCING

  • Altaley Mining Corp. advised there is no operational or financial reason for the decline in its stock price (Campo Morado, Guerrero).

ON RESOURCES AND DEVELOPMENT

  • Fabled Silver Gold Corp. released drilling results from its Santa María Project in Chihuahua. Highlighted core length results comprise 9.0 m @ 0.10 gpt Au, 50 gpt Ag; 1.50 m @ 0.06 gpt Au, 144 gpt Ag; 5.40 m @ 0.41 gpt Au, 29 gpt Ag; 2.20 m @ 0.11 gpt Au, 122 gpt Ag; 3.70 m @ 0.18 gpt Au, 26 gpt Ag; 2.90 m @ 0.06 gpt Au, 93 gpt Ag (including 1.15 m @ 0.07 gpt Au, 191 gpt Ag). New underground drilling stations are being planned to better define the structures.
  • Orla Mining Ltd. provided results of oriented in-fill core drilling at its Camino Rojo sulfide deposit in Zacatecas. Highlighted core length intervals in the press release comprise 108.0 m @ 2.38 gpt Au; 111.0 m @ 2.63 gpt Au; 58.5 m @ 2.51 gpt Au; 115.5 m @ 2.11 gpt Au; 64.6 m @ 3.04 gpt Au; 55.5 m @ 4.47 gpt Au; 55.5 m @ 4.95 gpt Au; 58.5 m @ 2.10 gpt Au; 87.0 m @ 2.27 gpt Au; 44.7 m @ 3.26 gpt Au. “The drill results confirm the presence of wide, higher-grade gold zones within the sulphide mineral resource, and the Company intends to further explore the potential for open pit or underground bulk mining methods”.
  • Orex Minerals Inc. informed its joint venture partner (55%) Fresnillo PLC has received metallurgical testing results for the Coneto project in Durango. Recoveries in seven zones with head grades of 0.80-3.00 gpt Au, 9-229 gpt Ag averaged 66.1 to 98.5% Au and 72.9 to 92.3% Ag.
  • Prime Mining Corp. reported drill results from six holes collared on San Miguel East, at its Los Reyes project in Sinaloa. Highlighted true width (tw) intervals comprise 7.5 m @ 2.50 gpt Au, 118 gpt Ag (including 3.4 m @ 4.57 gpt Au, 140 gpt Ag); 15.0 m @ 1.02 gpt Au, 51 gpt Ag (including 3.0 m @ 4.11 gpt Au, 13 gpt Ag); 1.4 m @ 1.59 gpt Au, 5 gpt Ag; 5.6 m @ 0.82 gpt Au, 7 gpt Ag; 0.7 m @ 1.55 gpt Au; 3.8 m @ 1.58 gpt Au, 14 gpt Ag, 1.4 m @ 1.18 gpt Au, 42 gpt Ag. “Discovery of the Fresnillo structure within San Miguel East’s current and expanding open-pit boundary is favorable and will reduce the stripping ratio of waste rock. Results from our initial drilling at Las Primas are early stage and very promising with the potential to add another deposit within the area of our existing eight deposits”.
  • Defiance Silver Corp. released drill results from its Zacatecas project in Zacatecas. Highlighted core-length results comprise 3.15 m @ 0.09 gpt Au, 118 gpt Ag, 0.2% Zn (including 1.25 m @ 0.20 gpt Au, 254 gpt Ag); 2.22 m @ 0.01 gpt Au, 138 gpt Ag; 16.47 m @ 0.17 gpt Au, 106 gpt Ag, 0.3% Zn (including 8.28 m @ 0.17 gpt Au, 166 gpt Ag, which in turn includes 4.55 m @ 0.12 gpt Au, 241 gpt Ag, 0.2% Zn).
  • Mexican Gold Mining Corp. announced a positive preliminary economic assessment (PEA) study for its Las Minas project in Veracruz. A new mineral resource estimate of 4.13 M tonnes @ 1.96 gpt Au, 4.6 gpt Ag, 1.08% Cu, 14.8% Magnetite in indicated resources and 5.20 M tonnes @ 1. 44 gpt Au, 6.0 gpt Ag, 0.95% Cu, 17.5% Magnetite in inferred resources, containing 443 K AuEq Oz and 361 K AuEq Oz respectively, with the estimated recoveries of 80% Au, 70% Ag, 90% Cu, 90% Magnetite. The PEA envisages an 8.5-year mine life with cash cost of $786 per AuEq Oz and an AISC of US$928 per AuEq Oz.
  • Discovery Silver Corp. released results from 21 diamond drill holes at its Cordero project in Chihuahua. Highlighted core length intercepts comprise 132.6 m @ 78 gpt Ag, 0.11 gpt Au, 1.7% Pb, 2.8% Zn, or 260 gpt AgEq (including 46.3 m @ 110 gpt Ag, 0.10 gpt Au, 2.4% Pb, 5.9% Zn; 77.1 m @ 55 gpt Ag, 0.12 gpt Au, 1.4% Pb, 1.8% Zn, or 190 gpt AgEq (including 19.6 m @ 137 gpt Ag, 0.25 gpt Au, 3.7% Pb, 3.2% Zn); 86.2 m @ 51 gpt Ag, 0.09 gpt Au, 1.2% Pb, 2.2% Zn or 192 gpt AgEq (including 36.5 m @ 97 gpt Ag, 0.16 gpt Au, 2.3% Pb, 4.3% Zn); 81.4 m @ 43 gpt Ag, 0.05 gpt Au, 0.9% Pb, 2.5% Zn, or 184 gpt AgEq (including 44.6 m @ 60 gpt Ag, 0.07 gpt Au, 1.3% Pb, 3.4% Zn). The upcoming resource estimate is to be released later this quarter.
  • Mag Silver Corp. reported results from 2020 drilling on the Juanicipio project (56%/44% Joint Venture between Fresnillo PLC and Mag Silver) in Zacatecas. Highlighted true width intercepts comprise 21.0 m @ 357 gpt Ag, 0.9 gpt Au, 1.6% Pb, 3.1% Zn, 0.2% Cu (including 6.1 m @ 1,023 gpt Ag, 1.6 gpt Au, 2.2% Pb, 1.7% Zn, 0.3% Cu); 18.1 m @ 198 gpt Ag, 3.9 gpt Au, 4.2% Pb, 10.0% Zn, 0.4% Cu in the Valdecañas Vein Deep Zone; 3.1 m @ 3,584 gpt Ag, 5.7 gpt Au, 0.5% Pb, 0.6% Zn; 5.2 m @ 1,356 gpt Ag, 3.3 gpt Au, 0.2% Pb, 0.2% Zn in the Valdecañas Vein Bonanza Zone; 10.3 m @ 112 gpt Ag, 0.6 gpt Au, 3.2% Pb, 6.2% Zn, 0.1% Cu; 7.6 m @ 101 gpt Ag, 2.4 gpt Au, 2.9% Pb, 3.5% Zn, 0.2% Cu in the Anticipada vein; 0.90 m @ 580 gpt Ag, 2.7 gpt Au in the Venadas vein; 1.9 m @ 607 gpt Ag, 9.8 gpt Au in the Valentina vein. A core length interval of 278.9 m @ 31 gpt Ag, 1.3% Zn, 0.1% Cu was obtained in the Skarn zone surrounding the Valdecañas Vein at depth.

ON DEALS AND CORPORATE ISSUES

  • No relevant news.

ON SOCIAL RESPONSIBILITY

  • No relevant news.

On the image below:  Low sulfidation epithermal quartz vein from a project in northern Sonora. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the Second Week of November, 2020

/ Gambusino Prospector / Leave a comment

By Jorge Cirett

During the 46th week of the year (November 9th to November 15th, 2020), at least 23 press releases were announced by companies working in Mexico. To note, five companies posted exploration advances on their projects and six more posted on project development. ON MEXICO ISSUES, Canadian mining investment increased during the COVID pandemic; a webinar about lithium in Mexico was held; the illegal blockade on Equinox’s Los Filos mine in Guerrero ended and the Discoveries Conference was held in Guadalajara, the first in-person gathering of the mining community since the pandemic began. ON EXPLORATION, in Sonora, Colibri released trench results from Evelyn; Tarachi Gold is mobilizing a portable diamond drill to the San Javier concession on its Tarachi property. In Sinaloa, Vizsla released assays from drilling at Panuco; Kootenay released drill results from Copalito. In Zacatecas, Advance Gold completed an IP survey.  ON MINING, Sierra Metals, Equinox and Americas Gold and Silver released third quarter 2020 results. Americas Gold and Silver updated on the Cosalá Complex situation in Sinaloa. ON FINANCING, Silver Bull and Candente Gold raised US$150 K and $200 K respectively. Aura Minerals made some clarifications on its latest public offering. Reyna Silver is now trading in USA and Germany. ON RESOURCES AND DEVELOPMENT, Mexican Gold released high grade drill results from its resource expansion program at Las Minas, Veracruz. Endeavour Silver released high-grade intercepts on Guanaceví, Durango. Discovery Metals released interesting results from drilling at its Cordero project in Chihuahua. GoGold informed on additional drill results from Los Ricos North project in Jalisco. Southern Silver Exploration informed on drill results from its Cerro Las Minitas project in Durango, some of which are high-grade. SilverCrest Metals updated on development activities at its Las Chispas project in Sonora.  ON DEALS AND CORPORATE ISSUES, Magna Gold optioned the Margarita project from Sable Resources (a property brought to Sable’s attention by Gambusino Prospector). VanGold Mining amended its option agreement to re-purchase three of four underlying royalties at its El Pinguico project in Guanajuato. ON SOCIAL RESPONSIBILITY. Fresnillo PLC promotes the creation of micro and small businesses in the Caborca region in Sonora.

ON MEXICO ISSUES

  • The COVID-19 pandemic saw investments by Canadian miners increase in Mexico, from US$30 M to US$160 – US$170 M a month during last September, according to Douglas Coleman, CEO of Mexico Mining Center. The increase in precious metal prices brought also an average increase of 30% on the valuation of companies in the Bolsa Mexicana de Valores (BMV) during the first 10 months of the current year.
  • The illegal blockade by the Carrizalillo community on Equinox’s Los Filos mine in Guerrero has been lifted, according to Jorge Zuriel de los Santos, head of the Fiscalía General del Estado de Guerrero (State Prosecutor).
  • The webinar “The truth about lithium in Mexico” was held on November 11, 2020, sponsored by Mundo Minero, the Colegio de Ingenieros de Minas, Metalurgistas y Geólogos de México (CIMMGM) and the Asociación de Ingenieros Mineros, Metalurgistas y Geólogos de México (AIMMGM).

ON EXPLORATION

  • Colibri Resource Corp. released assay results from the trenching program at its Evelyn project in Sonora. Highlighted results include 0.40 m @ 4.01 gpt Au on a quartz vein with oxidized pyrite, sericite and iron carbonate; 1.5 m @ 2.44 gpt Au in an andesite with quartz veining with oxidized pyrite and iron carbonate; Colibri has been granted a permit to complete up to 2.2 Km of trenching, and has collected 77 rock samples so far in these 1.5 m to 2.5 m deep trenches.
  • Vizsla Resources Corp. provided assay results from drilling on the Papayo and San Carlos prospects at its Panuco project in Sinaloa. “Drilling has continued to expand the known extents of mineralization at Papayo” with highlighted true width (TW) results comprising: 0.74 m @  7.96 gpt Au, 1,515 gpt Ag, 0.50% Pb, 1.21% Zn; 1.29 m @ 0.61 gpt Au, 125 gpt Ag; 0.78 m @ 2.66 gpt Au, 474 gpt Ag, 1.04% Pb, 2.80% Zn; 0.95 m @ 21.60 gpt Au, 216 gpt Ag, 1.91% Pb, 6.02% Zn; 1.49 m @ 1.0 gpt Au, 207 gpt Ag, 0.56% Pb, 1.32% Zn; 1.37 m @ 1.31 gpt Au, 168 gpt Ag; 5.61 m @ 1.05 gpt Au, 89 gpt Ag, 0.74% Pb, 1.9% Zn. “The San Carlos structure is wide lower grade bulk tonnage target with an average width of 11.5m and a range from 3.35m to 22.8m” with highlighted TW intercepts comprising 15.62 m @ 0.91 gpt Au, 110 gpt Ag (including 4.78 m @ 2.19 gpt Au, 230 gpt Ag); 19.20 m @ 0.30 gpt Au, 53 gpt Ag; 17.18 m @ 0.45 gpt Au, 67 gpt Ag (including 4.59 m @ 0.97 gpt Au, 147 gpt Ag); 22.76 m @ 0.26 gpt Au, 43 gpt Ag.
  • Advance Gold Corp. completed an induced polarization (IP) survey on its Tabasqueña project in Zacatecas. The new IP survey highlights two wide and closely spaced high chargeability anomalies, with the strongest being on the western part of the new grid. “For both targets, the associated chargeability anomaly is deeply seated (> 250 to 300m) while their origin is linked to two distinct wide mineralized systems. The western anomaly appears to remain open laterally to the north and south within the property limits”.
  • Tarachi Gold Corp. is mobilizing a man portable diamond drill rig to commence drill testing the high-grade gold bearing structures on the San Javier concession, part of its Tarachi project in Sonora. The drill program will focus on a NW trending shear structure where previous drill holes intercepted 5.0 m @ 34.5 gpt Au and 3.0 m @ 24.3 gpt Au. Mineralization is hosted in andesitic volcanic rocks, flanked by an intrusive rock, and the shear zone at San Javier remains open along strike and to depth, with the possibility of an extension under cover.
  • Kootenay Silver Inc. released results from the last seven holes on its 4,153 m drilling program at Copalito, in Sinaloa.  Highlighted intercepts comprise 9.05 m @ 2.09 gpt au, 124 gpt Ag, 0.8% Pb+Zn (including 2.25 m @ 6.65 gpt Au, 335 gpt Ag, 2.6% Pb+Zn, including 0.51 m @ 16.95 gpt Au, 369 gpt Ag, 3.74% Pb+Zn); 27.4 m @ 60 gpt Ag, 0.28 gpt Au, 0.4% Pb+Zn; 10 m @ 128 gpt Ag, 0.65 gpt Au, 1.13% Pb+Zn (including 2.25 m @ 484 gpt Ag, 2.18 gpt Au, 2.86% Pb+Zn).

ON MINING

  • Sierra Metals Inc. Released consolidated third quarter results for 2020, with some figures from its Mexican operations. The Bolivar Mine in Chihuahua processed 410.5 K tonnes in the quarter, a record representing a 24% increase over Q3 2019, at 4,691 tpd, and in track to reach the targeted 5,000 tpd during Q4 2020. The Cusi mine, also in Chihuahua, produced a record 304 K Oz Ag, with an ore throughput of 1,074 tpd.
  • Equinox gold Corp. reported its third quarter 2020 financial and operating results, without detailing figures from its Mexican operations. At Los Filos, the Guadalupe open pit and Bermejal underground proceeded for July and August, but were suspended by an illegal blockade by the community on September 3rd. “Optimization study for new carbon-in-leach plant, heap leach expansion, updated mine planning and a Mineral Reserve and Mineral Resource update targeted for completion in early 2021”.
  • Americas Gold and Silver Corp. reported financial and operational results for the third quarter 2020, including an update on its Mexican operations. At Cosalá, in Sinaloa “In August 2020, the Company announced that the illegal blockade had been resolved to permit some Company personnel the opportunity to re‐enter the mine operations.    This access has not been maintained.  With the re‐opening of Mexican government offices in August, the Company’s employees were expected to vote in September 2020 for new union representation and did so on September 17.  In advance of the vote, a number of irregularities came to light, which indicated that there could not be a fully democratic vote with freedom of association. As a result, the Company does not believe there are conditions currently present to invest the required capital to re‐start the Cosalá Operations.  The Company continues to work with all legitimate stakeholders and remains hopeful that a resolution, consistent with the rule of law and featuring an election free from threats and intimidation, can be achieved so that operations can re‐commence in the near term”. The company also finalized the option agreement with Hochschild to acquire 100% of the San Felipe project in Sonora.

ON FINANCING

  • Aura Minerals Corp. made some clarifications regarding the secondary public offering of Brazilian depositary receipts issued by Itaú Unibanco S.A. as depositary. “The total gross proceeds of the Secondary Offering to the Selling Shareholders are R$87,300,000.00, of which an aggregate of R$19,400,000 is in respect of the Shares offered, severally, by the ARC Funds and R$67,900,000 is in respect of the Shares offered by Ruffer. The Company will not receive any proceeds from the Secondary Offering” (Aranzazú, Zacatecas).
  • Silver Bull Resources Inc. completed the second and final tranche of the previously announced private placement, for gross proceeds of US$150 K, and aggregate gross proceeds of US$1.7 M (Sierra Mojada, Coahuila).
  • Reyna Silver Corp. announced its common shares have been approved for listing on the OTCQB Market Exchange in the United States and the Frankfurt Stock Exchange in Germany.
  • Candente Gold Corp. advised that the previously announced non-brokered private placement has been fully subscribed, for gross profits of $200K (El Oro, Estado de Mexico).

ON RESOURCES AND DEVELOPMENT

  • Mexican Gold Mining Corp.  released further assay results from the 2020 drilling program at its Las Minas project in Veracruz. Most of the 52 holes drilled so far have been targeting potential extensions to the El dorado resource, which remains open in several directions. Highlighted true width (TW) intercepts comprise 4.6 m @ 1.41 gpt Au, 0.55% Cu; 15.3 m @ 1.21 gpt Au, 1.1% Cu; 3.2 m @ 3.74 gpt Au, 3.76% Cu; 8.5 m @ 4.86 gpt Au, 1.17% Cu; 17 m @ 1.2 gpt Au, 0.85% Cu; 11.6 m @ 1.56 gpt Au, 1.03% Cu; 11.6 m @ 4.38 gpt Au, 1.84% Cu; 28.5 m @ 2.8 gpt Au, 1.12% Cu; 8.0 m @ 1.9 gpt Au, 0.36% Cu; 7.4 m @ 3.46 gpt Au, 5.08% Cu; 5.3 m @ 0.4 gpt Au, 0.83% Cu.
  • Endeavour Silver Corp. continues to intersect high-grade mineralization in the Santa Cruz vein on the El Curso property of the Guanaceví mine in Durango. Highlighted TW intersections on eleven holes comprise 3.2 m @ 2,307 gpt Ag, 3.15 gpt Au (2,559 gpt AgEq); 3.1 m @ 1,409 gpt Ag, 3.13 gpt Au (1,659 gpt AgEq) and 11.5 m @ 381 gpt Ag, 0.5 gpt Au.
  • Discovery Metals Corp. released results from seven diamond drill holes targeting bulk-tonnage mineralization in the South Corridor at its Cordero project in Chihuahua. Some of the highlighted results comprise 71.2 m @ 18 gpt Ag, 0.06 gpt Au, 0.2% Pb, 0.7% Zn; 139.1 m @ 47 gpt Ag, 0.07 gpt Au, 0.6% Pb, 1.6% Zn (138 gpt AgEq); 26.6 m @ 56 gpt Ag, 0.09 gpt Au, 0.4% Pb, 0.7% Zn; 19.4 m @ 41 gpt Ag, 0.06 gpt Au, 0.5% Pb, 1.2% Zn; 29.6 m @ 52 gpt Ag, 0.07 gpt Au, 0.8% Pb, 0.8% Zn; 92.1 m @ 27 gpt Ag, 0.05 gpt Au, 0.2% Pb, 0.4% Zn; 32.4 m@ 72 gpt Ag, 0.07 gpt Au, 0.3% Pb, 0.1% Zn; 38.4 m @ 36 gpt Ag, 0.04 gpt Au, 0.6% Pb, 0.7% Zn; 33.9 m @ 30 gpt Ag, 0.07 gpt Au, 0.5% Pb, 0.7% Zn; 62.2 m @ 38 gpt Ag, 0.07 gpt Au, 0.4% Pb, 0.7% Zn; 57.1 m @ 18 gpt Ag, 0.01 gpt Au, 0.2% Pb, 1.0% Zn. Assays from 27 holes are pending and four rigs are operating at the site.
  • GoGold Resources Inc. released additional drill results from the La Trini deposit at its Los Ricos North project in Jalisco. Highlighted core length intercepts comprise 25.9 m @ 0.34 gpt Au, 52 gpt Ag (including 4.7 m @ 0.81 gpt Au, 124 gpt Ag); 2.4 m @ 0.05 gpt Au, 300 gpt Ag; 18.7 m @ 0.58 gpt Au 46 gpt Ag; 18.2 m @ 0.11 gpt Au, 48 gpt Ag; 15.2 m @ 0.71 gpt Au, 71 gpt Ag (including 2.0 m @ 3.55 gpt Au, 284 gpt Ag and 1.3 m @ 4.20 gpt Au, 733 gpt Ag).
  • Southern Silver Exploration Corp. reported initial assay results from the recently started 10,000 m core drilling program at Cerro Las Minitas, Durango. Highlighted true width results from holes in the South Skarn target comprise 4.0 m @ 109 gpt Ag, 0.14 gpt Au, 0.02% Cu, 1.8% Pb, 2.1% Zn (including 0.9 m @ 412 gpt Ag, 0.14 gpt Au, 0.06% Cu, 7.8% Pb, 9.2% Zn); 0.8 m @ 132 gpt Ag, 0.12 gpt Au, 0.02% Cu, 2.8% Pb, 2.0% Zn; 1.1 m @ 54 gpt Ag, 2.83 gpt Au, 0.01% Cu, 3.6% Pb, 0.4% Zn; 3.2 m @ 99 gpt Ag, 0.27 gpt Au, 0.01% Cu, 0.7% Pb, 0.6% Zn; 6.7 m @ 625 gpt Ag, 0.11 gpt Au, 0.03% Cu, 11.8% Pb, 7.5% Zn; 1.2 m @ 112 gpt Ag, 0.07 gpt Au, 2.2% Pb, 2.1% Zn.
  • SilverCrest Metals Inc. provided an update on activities for 2020. During the first nine months of the year the company has drilled 146,000 m of in-fill and expansion drilling at Las Chispas project in Sonora. Furthermore, 4.1 km of underground decline and lateral drifting, stockpiling an accumulated 47 K tonnes @ 1,130 gpt AgEq (7.21 gpt Au, 590 gpt Ag). “Las Chispas site activities continued with the building of the administration and warehouse facilities, phase 1 of the temporary quarantined COVID-19 camp, communication system, and water pumping stations”. Since inception of the project, 461,000 m have been drilled in 1,712 holes. As October 31, 2020, SilverCrest has cash and cash equivalents of $184 M (US$138.2 M).

ON DEALS AND CORPORATE ISSUES

  • Magna Gold Corp. entered into a definitive option acquisition agreement with Sable Resources Ltd. To acquire Sable’s option to acquire 100% interest in the 125.6 ha Margarita silver property in Chihuahua; the property lies 15 Km northwest on strike with the recently commissioned Sunshine Silver Corp’s Los Gatos mine. Magna is to acquire the option by paying CAD$1.5 M cash, plus additional CAD$800 K VAT and CAD$3.5 M in common shares of Magna. The purchaser will exercise the option to acquire the property by payment of CAD$500 K in cash, plus $368 K in VAT to the titleholders of the concessions and CAD$1.8 M in Magna shares. Sable drilled 35 holes for a total of 5,245 m, with intercepts like: 4.25 m @ 430 gpt Ag, 0.2% Pb, 0.7% Zn; 12.4 m @ 446 gpt Ag, 0.7% Pb, 1.0% Zn; 14.05 m @ 306 gpt Ag, 0.7% Pb, 1.9% Zn; 11.3 m @ 229 gpt Ag, 1.0% Pb, 0.3% Zn; 33.3 m @ 283 gpt Ag, 0.3% Pb, 0.8% Zn (including 9.9 m @ 579 gpt Ag, 0.8% Pb, 1.7% Zn); 20.6 m @ 83 gpt Ag, 0.1% Pb, 0.3% Zn (including 5.1 m @ 198 gpt Ag, 0.2% Pb, 0.3% Zn); 48.65 m @ 102 gpt Ag, 0.1% Pb, 0.4% Zn; 37.35 m @ 117 gpt Ag, 0.17 gpt Au, 0.2% Pb, 0.7% Zn (including 5.5 m @ 400 gpt Ag, 1.07 gpt Au, 1.1% Pb, 0.4% Zn).
  • VanGold Mining Corp. amended its option agreement to re-purchase three of the four underlying royalties on its Pinguico project, Guanajuato. Under the new terms the option is exercisable by making payments to EMBSA (Exploraciones Mineras del Bajío, S.A. de C.V.) of $200 K cash and 3.75 M shares before November 20, 2020; $325 K in cash before February 22, 2021; $525 K in cash before February 22, 2022 and $625 K in cash before February 22, 2023. After these payments are made, the only NSR on the property will cover the above ground and below ground stockpiles. 

ON SOCIAL RESPONSIBILITY

  • Fresnillo PLC promotes the creation of micro and small businesses by means of its “Emprende en Línea” (Online Entrepreneurship) program, to develop administrative and managerial capabilities to consolidate businesses. For more than two decades Minera Penmont has contributed to the growth of the Caborca region through the implementation of social programs.

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

On the image below: Base metal veinlet in core from Cerro San Pedro, San Luis Potosí. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the Third Week of July, 2020.

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Argillic alteration

By Miguel A Heredia

During the twenty nine week of the year (July 13th to July 19th, 2020), at least 47 press releases were announced by companies working in Mexico, with ten communicating production and financial results, nine commenting on Mexican issues, eight announcing financial rounds, seven informing on exploration results, five disclosing deals and corporate issues, four reporting on resources and developments, and four discussing on social issues. ON MEXICO ISSUES, Claudia Pavlovich and Hector Astudillo, governors of Sonora and Guerrero respectively, asked the Ministry of Economy to reconsider returning to the support that was granted to the municipalities with the Mining Fund. Jose Ignacio Peralta Sanchez, governor of Colima state requested the reactivation of The Mining Fund. Karen Flores, Director of the Mexican Mining Chamber (CAMIMEX), stated that 16% of the workforce in the Mexican mining industry is occupied by women. The Secretary of Economic Development of Michoacan, Jesus Melgoza Velazquez, announced that the regional committee of the Mining Fund for the Development of Mining Areas was reactivated after approximately two years.  Fernando Alanis, president of the Mexican Mining Chamber (CAMIMEX) declared that the mining sector in the country is at risk of contracting if new concessions are not granted.  Torex Gold plans additional investment of USD $ 500M in Mexico but asked the government for certainty. The Ministry of Labor and Social Security (STPS) reported that it is in preparation for the next stage of the rescue of the miners who were trapped in the Pasta de Conchos mine in Coahuila 14 years ago. The Zacatecas Mining Cluster (Clusmin) and its members started the construction of the Compatible Mining Center in Zacatecas. Minera Esperanza Silver (Alamos Gold Inc.) reaffirmed its commitment with Mexico. ON EXPLORATION, In Sonora, Colibri concluded its current phase of field work at its Evelyn project and planed the next phase trenching program, Ridgestone reported drill results from the three first holes collared at its Rebeico project, Minaurum commenced phase II drilling at its Alamos Silver project, and Silver Viper reported results from four holes drilled at its La Virginia project. In Chihuahua, Kootenay released drill results from its Columba project, and Consolidated Zinc provided an exploration update on its Potrero and Don Lucas prospects.  In Sinaloa, Vizsla expanded the exploration program at its Panuco project and added a third drill rig.  ON MINING, Aura, Avino, Consolidated Zinc, First Majestic, Fortuna, GoGold, Gold Resource, McEwen, Santacruz and Sierra Metals reported Q2, 2020 production results from their Mexican operations. ON FINANCING, Aztec Minerals closed the first tranche of its private placement for gross proceeds of CAD $2.12M (Cervantes project, Sonora). Silver Tiger announced a plan to conduct a non-brokered private placement for gross proceeds of up to $11M (El Tigre project, Sonora). Tarachi Gold announced it intends to complete a non-brokered private placement for net proceed of up to CAD $5M (Tarachi project, Sonora).  Xtierra closed its previously announced private placement for gross proceeds of $1M (Bilbao project, Zacatecas). Mammoth announced lifting of management cease trade order and issuance of shares for debt and incentive options (Tenoriba project, Chihuahua). Mexus announced that the company satisfied a $57K note payable by way of conversion (Santa Elena mine, Sonora). Telson announced that further to its application for a management cease trade order, which was granted by the British Columbia Securities Commission, it has been required to provide bi-weekly status reports (Tahuehueto project, Durango). One World Lithium announced that it will continue providing bi-weekly updates following a management cease trader order granted for the British Columbia Securities Commission (Salar del Diablo project, Baja California Norte). ON RESOURCES AND DEVELOPMENT, Endeavour announced a final PFS on its Terronera mine in Jalisco. GR Silver resumed the surface drilling at its Plomosas project in Sinaloa.  Prime Mining provided an update regarding the initial phase of exploration planned on its Los Reyes project in Sinaloa. Minera Alamos provided mid-year construction update at its Santana project in Sonora.  ON DEALS AND CORPORATE ISSUES, Carlyle entered in an option agreement with Riverside to purchase 100% interest in the Cecilia project in Sonora.  Golden Minerals signed a letter of intent with Fabled Copper to sell its Santa Maria project in Chihuahua. Minera Alamos announced the appointment of a new member to its board of directors (Santana project, Sonora). Oroco announced the appointment of a director to join to its board of directors (Santo Tomas project, Sinaloa). ON SOCIAL RESPONSIBILITY, Fresnillo plc continues to implement sanitary measures in its work centers and support the communities surrounding the operations. Grupo Peñoles supported the donation of bed-chairs for Coahuila hospitals. MSX (New Gold Inc.) donated pantries to vulnerable population in the communities of Cerro de San Pedro, San Luis Potosi, as well as personal protection equipment to hospitals. Camino Rojo S.A. de C.V. (Orla Mining Ltd.) continued helping communities and government agencies where it operates to mitigate the risk of the COVID-19 pandemic.

 ON MEXICO ISSUES

  • Claudia Pavlovich and Hector Astudillo, governors of Sonora and Guerrero respectively, asked the Ministry of Economy to reconsider returning to the support that was granted to the municipalities with the Mining Fund. The governor of Guerrero said that the Mining Fund can be used to reactivate the economy in the most affected regions by the unemployment of the industry due to the COVID-19 pandemic, as well as to attend to the population affected by the virus, as well as for medical care and medicines. The governor of Sonora said that this support marked a before and after in the municipalities where the resources were applied, and stated that the Mining Fund should be reconsidered to promote the development of the municipalities. In addition, governors of Coahuila, Durango and Chihuahua highlighted the importance of mining activity in their states.
  • José Ignacio Peralta Sanchez, governor of Colima state asked the Undersecretary of Mining, Francisco Jose Quiroga Fernandez, to resume Mining Funds pending from some years ago, since due to the current economic conditions is when this resource is most required. The governor stressed that mining is an engine for the entity’s economy, since it has important productive chains, which makes it a strategic sector.
  • Karen Flores, Director of the Mexican Mining Chamber (CAMIMEX), stated that 16% of the workforce in the Mexican mining industry is occupied by women. She argued that although it seems a minority figure, its increase has been exponential. She also commented that Mexican mining adheres to the agreements of the 2030 agenda of the United Nations (UN) in two of its main objectives, such as the reduction of inequality and gender equity.
  • The Secretary of Economic Development of Michoacan, Jesus Melgoza Velazquez, announced that the regional committee of the Mining Fund for the Development of Mining Areas was reactivated after approximately two years. The Mining Fund will allow physical infrastructure works to be carried out in municipalities with mining activity such as Tlalpujahua, Tzitzio, Tuzantla, Huetamo, Villa Madero, La Huacana, Arteaga, Coalcoman, Aquila and Lazaro Cardenas. Since the creation of the regional committee of the mining fund in 2014, MXP $171M have been earmarked for the realization of 61 projects such as paving works for streets and roads, construction of sanitary landfills, infrastructure for the drinking water service, sewerage and water treatment plants, placement of LED street lights, construction of classrooms, roofs and civic patios in schools.
  • Fernando Alanis, president of the Mexican Mining Chamber (CAMIMEX), declared that the mining sector in the country is at risk of contracting if new concessions are not granted. Alanis recalled the importance of mining activity, in order to continue the 370,000 direct jobs and 2-3 millions of indirect jobs generated by this sector, in addition to the fact that for each hectare concessioned under active exploitation, it has a spill of MXP $22,829M. He also said that between 2016 and 2019 the sector paid MXP $174,500M for taxes.
  • Jody Kuzenko, President & CEO of Torex Gold Resources Inc., declared that it plans additional investments of USD $ 500M in Mexico in the construction and commissioning of its Media Luna project in Guerrero but asked the government for certainty in key areas such as in the rule of law and in economic policies to keep its investment projects.
  • The Ministry of Labor and Social Security (STPS), reported that it is in preparation for the next stage of the rescue of the remains of the 65 miners who were trapped in the Pasta de Conchos mine in Coahuila 14 years ago.
  • The Zacatecas Mining Cluster (Clusmin) and its members, started the construction of the Compatible Mining Center in Zacatecas, which is expected to take a year. The Compatible Mining Center aims to promote the development of science, the use of the latest technology and promote innovation for the development of specific purpose applications in the mining environment in the areas of occupational health, physical and psychological safety of workers, and protection of the environment in mining operations in the state of Zacatecas.
  • Minera Esperanza Silver (Alamos Gold Inc.), reaffirmed its commitment with Mexico and highlighted the enormous opportunity for Morelos to be part of the mining sector and the national extractive industry, which is equivalent to 8.3% of industrial GDP. The spokesperson for the Esperanza Silver mining company in Mexico, responsible for the Esperanza project, located in the municipality of Temixco stated that Temixco is shaping up to be one of the mining municipalities in Mexico, where well-being and possibilities for economic and social development are imminent and we must prepare for it.

ON EXPLORATION

  • Colibri Resource Corporation, concluded the current phase of field work and released mapping and sampling results from its Evelyn project in Sonora. A total of 40 grab samples were collected, 9 of which returned grades greater than 0.1 g/t Au, including 4 running more than 1 g/t Au, with a peak value of 8.4 g/t Au at the Cerro Rojo target area. The high-grade samples all consist of quartz vein, veinlets, and quartz breccia with oxidized pyrite and goethite. Colibri plans the next phase on trenching at its Evelyn project.
  • Ridgestone Mining Inc., reported drill results from the three first holes collared at its Rebeico project in Sonora. 1,674m were completed on the New Year Zone to investigate the subsurface extent of significant gold and copper mineralization previously sampled on surface. Significant drill intersections were encountered in hole 20REB013D with 2.13 g/t Au and 1.79% Cu over a width of 16.25m, including 5.25 g/t Au and 1.46% Cu over a width of 4.35m. Holes 20REB014D and 20REB015D intersected 0.25% Cu and 0.19%Cu over a width of 16.2m and 10.9m respectively.
  • Minaurum Gold Inc., commenced phase II drilling program at its Alamos Silver project in Sonora with a minimum of 20,000m. This phase will involve systematically stepping out from discoveries made during Phase I drilling beginning with two drill rigs. “One drill will offset the Europa-Guadalupe discovery hole (AL17-007) which returned 8.25 m grading 1,760 g/t Ag. The other drill will test targets at Promontorio, both along the vein trend and beneath the Promontorio mine where recently acquired historical data revealed holes that returned up to 12.2 m grading 710 g/t Ag”.
  • Silver Viper Minerals Corp., reported results from four new drill holes at La Virginia, two from the El Rubi discovery area and two from the exploration prospect, Macho Libre. Significant drill intersections were encountered in hole LV20-234 collared at El Rubi with 2.05 g/t Au and 11 g/t Ag over a true width (TW) of 4.26m, including 3.59 g/t Au and 16 g(/t Ag over a TW of 1.18m; hole LV20-231M drilled at Macho Libre with 0.63 g/t Au and 24 g/t Ag over a TW of 11.76m, including 1.07 g/t Au and 54 g/t Ag over a TW of 3.60m; and hole LV20-233M drilled at Macho Libre with 1.41 g/t Au and 26 g/t Ag over a TW of 0.90m. Drilling at the El Rubi Discovery Zone continues to expand the system and the rig is being mobilized to a second exploration target named Rubi East.
  • Kootenay Silver Inc., released results from five drill holes collared at its Columba project in Chihuahua. These holes are step outs along strike and to depth from high-grade intercepts previously reported in the Phase-II drill campaign. Significant drill intersections were encountered in hole CDH-20-052 with 199 g/t Ag, 0.08% Pb, and 0.27% Zn over 7.53m, including 279 g/t Ag, 0.11% Pb, and 0.38% Zn over 4.08m, and including 601 g/t Ag, 0.03% Pb, and 0.12% Zn over 1.23m within the F Vein; hole CDH-20-053 with 116 g/t Ag, 0.11% Pb, and 0.24% Zn over 34m, including 175 g/t Ag, 0.17% Pb, 0.37% Zn over 11m, including 496 g/t Ag, 0.55% Pb, and 0.91% Zn over 3m, including 620 g/t Ag, 0.35% Pb, 0.9% Zn over 2m, including 753 g/t Ag, 0.38% Pb, and 1% Zn over 0.95m in F Vein and Hanging Wall structure; and hole CDH-20-054 with 158 g/t Ag, 0.4% Pb, and 0.35% Zn over 5m, including 319 g/t Ag, 0.18% Pb, and 0.5% Zn over 1.8m in F Vein.
  • Consolidated Zinc Limited, provided an exploration update on its Potrero and Don Lucas prospects in Chihuahua and has reserved $600K for exploration field work this year. The company has continued its Au exploration with desktop studies which has established targets and defined a scope of work for immediate commencement of field mapping, sampling and drilling in the current field season.
  • Vizsla Resources Corp., expanded the exploration program at its Panuco project from 14,500m of drilling to 31,100m and added a third rig, which has already commenced to drill. In addition, a fourth drill rig is expected to arrive at the beginning of August. “Third and fourth drill rigs will test exploration targets including the strike extensions of the Napoleon vein corridor, the Tajitos vein, the San Carlos mine at Animas and additional targets along the Cordon del Oro vein corridor”. Drilling is continuing at the high-grade Napoleon discovery with drill hole NP-20-14 in progress. Drilling is testing to the south and down dip of the discovery hole NP-20-02 before moving back north to test vein extension near hole NP-20-07. The updated July-December exploration program is estimated to cost approximately $6.9 M.

 ON MINING

  • Aura Minerals Inc., presented Q2, 2020 production results from its Aranzazu mine in Zacatecas. It produced 5K Oz Au, 91.6K Oz Ag, and 6.2M Lb Cu (14,748 Oz AuEq).
  • Avino Silver & Gold Mines Ltd., announced that it processed 40,190 tonnes of 0.40 g/t Au, 49 g/t Ag and 0.58% Cu at metallurgical recoveries of 79%, 90% and 90% respectively, to produce 404 Oz Au, 50.6K Oz Ag, and 459.8K Lb Cu (158.3K Oz Ag) during the period Q2,2020 from its Avino mine in Durango.
  • Consolidated Zinc Limited, reported that Zn-Pb grades exceeding 25% and 8% respectively are being encountered at the newly opened up Las Espadas underground area while the semi-oxidized ore continues to be mined and delivered at rates of above 15o tonnes per day. At its Aldama plant, it has achieved record availability to July 10 2020 of 94.5% while the recoveries are improving above performance thanks to the effort of the technical team.
  • First Majestic Silver Corp., presented production results for the period Q2, 2020 from their Mexican operations. The table below shows mine by mine production figures:

At the end of Q2, 14 exploration drill rigs were active across the company’s projects consisting of 11 rigs at San Dimas, two rigs at Santa Elena and one rig at La Encantada. The company anticipates adding seven additional rigs in Q3 with a primary focus on the regional potential around Santa Elena.

  • Fortuna Silver Mines Inc., released Q2, 2020 production results from its San Jose mine in Oaxaca. The company milled 160,151 tonnes of 1.42 g/t Au and 220 g/t Ag at metallurgical recoveries of 90.91% and 90.84% respectively to produce 6,654 Oz Au and 1.03M Oz Ag, at cash cost of USD $66/ton.
  • GoGold Resources Inc., presented production results from its Parral Tailings project in Chihuahua for the period Q2, 2020. The company produced 1,914 Oz Au, 270K Oz Ag, and 233K Lb Cu (504.4K Oz AgEq).
  • Gold Resource Corporation, announced preliminary production results from its Oaxaca Mining Unit in Oaxaca. It produced 2,441 Oz Au, 185.3K Oz Ag, 551K Lb Cu, 2.56M Lb Pb, and 6.75M Lb Zn during the period Q2, 2020.
  • McEwen Mining Inc, produced in Q2, 2020 from its El Gallo mine in Sinaloa over 1,900 Oz AuEq from residual leaching of the heap leach pad.
  • Santacruz Silver Mining Ltd., released Q2, 2020 production and financial results from its Mexican operations. At Zimapan, Hidalgo the company milled 139,903 tonnes to produce 829,514 Oz AgEq from which 626,984 were sold, at cash cost per tonne and for Oz AgEq of $48.15 and $16.53 respectively, and AISC of $17.57 per Oz AgEq. At Veta Grande, Zacatecas, it milled 11,095 tonnes to produce 64,870 Oz AgEq from which 47,854 were sold, at cash cost per tonne and for Oz AgEq of $148.36 and $39.54 respectively, and AISC of $46.34 per Oz AgEq. At Rosario, San Luis Potosi, the company milled 17,497 tonnes to produce 73,251 Oz AgEq from which 61,111 were sold, at cash cost per tonne and for Oz AgEq of $62.12 and $23.47 respectively, and AISC of $29.01 per Oz AgEq.
  • Sierra Metals Inc., announced production results from its Bolivar mine in Chihuahua for the period Q2, 2020. Cusi mine remained in care and maintenance throughout Q2, 2020. At Bolivar mine, the company processed 308,951 tonnes of 0.30 g/t Au, 26 g/t Ag, and 0.93% Cu at metallurgical recoveries of 63.79%, 82.80%, and 87.09% respectively, to produce 1,912 Oz Au, 214K Oz Ag, and 5.54M Lb Cu. “At Cusi mine, Chihuahua, development is currently on-going in a zone that will bypass the previously announced area of subsidence and provide access to higher-grade economic ore to provide feed for the mill. Production is expected to recommence after the mine development work is completed and once a process can be implemented at the mine to mitigate risk to employees at the site through a testing and quarantine methodology similar to the company’s other operations”.

 

ON FINANCING

  • Aztec Minerals Corp., closed the first tranche of its private placement for gross proceeds of CAD $2.12M. Part of the gross proceeds will be used to conduct exploration work at its Cervantes project in Sonora, and for general working capital purposes.
  • Silver Tiger Metals Inc., announced a plan to conduct a non-brokered private placement for gross proceeds of up to $11M. Net proceeds will be primarily used for further exploration at its El Tigre project in Sonora.
  • Tarachi Gold Corp., announced it intends to complete a non-brokered private placement for net proceeds of up to CAD $5M. Gross proceeds will be used for exploration of its Tarachi project in Sonora, corporate development, and general working capital purposes.
  • Xtierra Inc., closed its previously announced private placement for gross proceeds of $1M. Nett proceeds will be used to expand and diversify its royalty portfolio into Canada, USA and other mining friendly jurisdictions (Bilbao project, Zacatecas).
  • Mammoth Resources Corp., announced lifting of management cease trade order and issuance of shares for debt and incentive options. The company has yet to file its Q1, 2020 financial statement and Management Discussion & Analysis which were due on June 30, 2020. It expects to file these statements shortly (Tenoriba project, Chihuahua). Mammoth also announced the issuance of 2,503,000 common shares to settle a total of $87,605 in related party and third party debts.
  • Mexus Gold US, announced that the company satisfied a $57K note payable by way of conversion. In addition, Mexus’ audit obligation has been met with the audit expected to be completed in the next 7 days. The audit process was delayed due to the company moving from an exploration company to a production company (Santa Elena mine, Sonora).
  • Telson Mining Corporation, announced that further to its application for a management cease trade order, which was granted by the British Columbia Securities Commission on June 16, 2020, it has been required to provide bi-weekly status reports in accordance with the alternative information guidelines in National Policy 12-203 management cease trade orders, until such time as the company has completed and filed its audited annual financial statements and management’s discussion and analysis in respect of the financial year ended December 31, 2019 (Tahuehueto project, Durango).
  • One World Lithium Inc., announced that it will continue providing bi-weekly updates following a management cease trader order granted for the British Columbia Securities Commission. The company anticipated that the annual filings and the quarterly filings will be filed on or before July 30, 2020 (Salar del Diablo project, Baja California Norte).

ON RESOURCES AND DEVELOPMENT

  • Endeavour Silver Corp., announced a final PFS on its Terronera mine in Jalisco. Base case highlights of the PFS include a NPV 5% of $137M, and IRR of 30%, annual production average of 3M Oz Ag and 32.8K Oz Au (5.9M OZ AgEq) over an initial  10 year mine life, a cash cost and AISC of $0.004 and $2.10 per Oz Ag net of the Au credit respectively, Initial and sustaining capital expenditures of $99M and $60M respectively, a payback period of 2.7 years, and a Pre-Tax and After-Tax undiscounted free cash flow of $315M and $217M respectively.
  • GR Silver Mining Ltd., restarted the 4,500m surface drilling at its Plomosas project in Sinaloa with three drill rigs which is expected to continue through 2020. This drill program is focused on shallow drilling (up to 150m below surface) to expand the known mineralized zones along strike at Plomosas mine and San Juan-La Colorada areas, and follow-up drilling on several new high grade Au-Ag low sulphidation epithermal veins occurrences at the Yecora and El Saltito. Additionally, GR Silver will commence recon work on 11 priority targets identified to contain potential for new discoveries.
  • Prime Mining Corp., provided an update regarding the initial phase of exploration planned on its Los Reyes project in Sinaloa. Focus of the phase 1 program is to upgrade and expand the current mineral resource, test identified zones of high-grade, and advance the understanding of the geology and structural controls of the known deposits of the property. The program is expected to cost approximately $6M and has a targeted completion date of late Q1, 2021.
  • Minera Alamos Inc., provided mid-year construction update at its Santana project in Sonora. The company announced that the heap leach pad area has been cleared of all vegetation and is undergoing contouring ahead of clay placement and the pad liner installation, and that the bypass road construction at either end of the heap leach pad area is underway; reported that the explosive storage & detonator bunkers are awaiting final inspection from the Mexican authorities ahead of the explosive permit issuance; and that the fabrication of the plant carbon columns is complete with work underway for the remaining plant steel structure.

ON DEALS AND CORPORATE ISSUES

  • Carlyle Commodities Corp., entered into an option agreement with Riverside to earn 100% interest in the Cecilia project in Sonora. In order to purchase 100% interest in the Cecilia property, Carlyle has to make aggregate cash payments of $200K over 3 years to Riverside, issue 1.5M common shares, issue 3M non-transferable special warrants, and incur an aggregate of $2.5M in exploration expenditures. Riverside will retain a 2.5% NSR.
  • Golden Minerals Company, signed a letter of intent with Fabled Copper Corp., to sell its Santa Maria project in Chihuahua. The Agreement provides a 10-calendar day period during which Fabled will conduct its due diligence. If Fabled executes the option agreement to acquire 100% interest in Santa Maria property, it has to make a cash payment of USD $0.5M and issue 1M Fabled common shares, USD $1.5M in cash 12 months after closing of the transaction, USD $2M in cash 24 months after closing of the transaction, and upon Fabled exercises the option, it will grant to Golden a 1% NSR.
  • Minera Alamos Inc., announced the appointment of a new member to its board of directors (Santana project, Sonora).
  • Oroco Resource Corp., announced the appointment of a new member to join to its board of directors (Santo Tomas project, Sinaloa).

ON SOCIAL RESPONSIBILITY

  • Fresnillo plc, continues to implement sanitary measures in its work centers and support the communities surrounding its operations in Fresnillo, Saucito, Juanicipio in Fresnillo, Zacatecas, Orisyvo in Uruachic, Chihuahua, Herradura, Noche Buena and Centauro in Caborca, Sonora, San Julian and Cienega in Durango, and in Torreon, Coahuila. . The company donated a last-generation respirator and medical protection equipment such as N-95 respirators, latex gloves, disinfectant gel, disposable gowns, disposable face masks, face masks, and disposable surgical face masks to the General Hospitals of the Mexican Institute of Social Security (IMSS), as well as thousand food pantries. With these actions, Fresnillo plc, belonging to the Mexican corporate Grupo BAL, joins the commitment to health care, with the purpose of guaranteeing the well-being of families and the population that lives in the areas surrounding its operations.
  • Grupo Peñoles, through contributions made by employees to the service of Met-Mex Peñoles, supported the donation of bed-chairs to Coahuila hospital to support those who deserve decent living conditions.
  • MSX (New Gold Inc.), donated pantries to vulnerable population in the communities of Cerro de San Pedro, San Luis Potosi, as well as personal protection equipment to hospitals designated as medical centers to care for patients with COVID-19.
  • Camino Rojo S.A. de C.V. (Orla Mining Ltd.), continued helping communities and government agencies providing support in sanitary filters installed in the border of Zacatecas with the different states; donated pantries during the months of April, May and June containing products from the basic basket which are intended to contribute to the economy of families in the communities of influence, which are San Tiburcio, Berrendo and San Francisco de los Quijano.

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, argillic alteration related to a porphyry copper system in a prospect in Michoacan, Mexico.  Photo by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the First Week of July, 2020.

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Visible Gold in a high sulphidation epithermal system

By Miguel A Heredia

During the twenty seven week of the year (June 29th to July 5tt, 2020), at least 41 press releases were announced by companies working in Mexico, with eleven disclosing deals and corporate issues, nine announcing financial rounds, eight commenting on Mexican issues, six discussing on social issues, three informing on exploration results, two reporting on resources and developments, and two communicating production and financial results. ON MEXICO ISSUES, Miguel Angel Lucero Olivas, Senator of the Labour Party (PT), submitted for the consideration of the plenary, a proposal with Point of Agreement at the Supreme Court of Justice of the Nation in regards to the 34 constitutional controversies promoted by the Government of the state of Chihuahua and various municipalities of Chihuahua, Sonora, Zacatecas and San Luis Potosí, regarding the mining Fund. Gerardo Duran Alarcon, Director of the Chihuahua Mining Cluster estimated that the mining industry projects a drop between 17-20% in production and 10% in exports during the current year compared to 2019.  Francisco Quiroga Fernandez reported that authorities of the Undersecretariat of Mines of the Ministry of Economy (SE), have been carrying out verification tours to corroborate compliance with health protocols. Alfredo Tijerina Guajardo, Director of the Mining Development Trust Fund (Fideicomiso de Fomento Minero) (FIFOMI) announced that it is granting resources to support exploitation work of small and medium sized mining firms. Javier Villarreal Gamez, Undersecretary of Labor of the National Committee of the Confederation of Workers of Mexico (CTM) stated that the government must give security to investment in mining. Francisco Quiroga Fernandez, Undersecretary of Mining stated that the Mining Industry in Mexico has made a great effort to maintain jobs and wages during the pandemic. According to the National Institute of Statistics and Geography (INEGI), mining and metallurgical production fell 25.1% in April 2020 compared to April 2019.  ON EXPLORATION, In Sonora, Sonoro Metals announced plans for a 6,000m 2020 Phase 1 drill program at its Cerro Caliche project. In Chihuahua, Radius reported high-grade surface sampling results from its Amalia project. In Durango, Canasil announced the commencement of an initial core drill program to test Ag-Au targets at its Nora project.  ON MINING, Consolidated Zinc advised that it has returned to pre-COVID-19 production rates at its Plomosas mine and Aldama processing plant in Chihuahua. Gold Resource announced the milestones of a decade of production, generating over $1 billion in revenue and distributing over $114M in shareholder dividends from its Oaxaca Mining Unit in Mexico. ON FINANCING, Golden Goliath announced a private placement to raise gross proceeds of up to $2.5M (San Timoteo project, Chihuahua). Mag Silver entered into a sell agreement for gross proceeds of up to USD $50M (Juanicipio project, Zacatecas).  San Marco increased its previously announced non-brokered private placement to up to $3.5M (Chunibas project, Sonora). Oroco closed a non-brokered private placement for gross proceeds of $1.65M (Santo Tomas project, Sinaloa). Radius received from Pan American a payment of USD $150K in partial fulfillment of the Amalia JV agreement. Telson increased its previously announced non-brokered private placement to up to $1.4M (Tahuehueto project, Durango). VanGold concluded its warrant acceleration bonus program in which 7,159,500 warrants were exercised for gross proceeds of $1,715,950 (Pinguico project, Guanajuato). Excellon signed a binding term sheet for a fully subscribed financing of CAD $8M through the private placement of secured convertible debentures of the company. ON RESOURCES AND DEVELOPMENT, Prime Mining released surface and underground sampling results from its Los Reyes project in Sinaloa. Endeavour reported drill results from the El Curso property at its Guanacevi mine in Durango. ON DEALS AND CORPORATE ISSUES, Discovery Metals reported results from its annual general meeting of shareholders (Cordero project, Chihuahua). Magna Gold granted stock options to certain officers, directors and consultants of the company (San Francisco Mine, Sonora). One World Lithium provided a default status report to approve a temporary management cease trade order (Salar del Diablo project, Baja California Norte). Silver Dollar appointed Mr. Perry Durning and Mr. Frank (Bud) Hillemeyer as technical advisors to the Company (La Joya property, Durango). Silver One announced the initiation of trading on the OTCQX (Peñasco Quemado project, Sonora). Argonaut and Alio completed merger to create a North American, diversified precious metals producing company (El Castillo mine, Durango).  Brigadier announced the appointment of Oscar Mendoza as special advisor Cuatro Ciénegas project, Coahuila). Canuc reported results from its annual general meeting of shareholders and appointed a new member to its board of directors (San Javier project, Sonora). Mammoth reminded shareholders of the granting of a Management Cease Trade Order (Tenoriba project, Chihuahua).  Sierra Metals reported results from its annual general meeting of shareholders (Cusi mine, Chihuahua). Defiance confirmed that the Company’s management is unaware of any material change in the Company’s operations that would account for the recent increase in market activity (San Acacio project, Zacatecas). ON SOCIAL RESPONSIBILITY, Agnico Eagle launched its policy “Stay Safe Stay Watchful”, as countries where the company is operating are now cautiously emerging from the global blockade. Minera Penmont (Fresnillo plc) meets extraction regulations with new technology and innovative tools (La Herradura mine, Sonora). Minera Peña Colorada delivered the Medical Care Unit to the General Hospital of Manzanillo in Colima state. The Grupo Mexico Foundation donated over 45,000 medical supplies to the Zacatecas Health Secretariat, and three pressure ventilators to the regional hospital of Nueva Rosita, Coahuila. Minera san Julian (Fresnillo plc), delivered additional 4,000 face mask to the Municipal Council of Guadalupe y Calvo, Chihuahua.

 ON MEXICO ISSUES

  • Miguel Angel Lucero Olivas, Senator of the Labour Party (PT), submitted for the consideration of the plenary, a proposal with Point of Agreement at the Supreme Court of Justice of the Nation in regards to the 34 constitutional controversies promoted by the Government of the state of Chihuahua and various municipalities of Chihuahua, Sonora, Zacatecas and San Luis Potosí, regarding the Mining Fund. The formal name of the well-known “Mining Fund” is the Fund for the Development of Mining Production Areas and is administered through of a financial instrument established by the 2019 Income Law, article 25 section IX. The total amount collected is MXP $4,320M.  The distribution will be made as follows:  80% (Fund for the Development of Mining Production Zones), that is to say approximately MXP $3,500M; 10% for the Ministry of the Economy (SE) and 10% for the Federal Government. (Note:  The SE has given its 10% to the Federal Government since last year.) The Ministry of Economy will distribute the 2018 Mining Fund resource directly or in coordination through an agreement with states, municipalities and other dependencies, and according to the guidelines.
  • Gerardo Duran Alarcon, Director of the Chihuahua Mining Cluster estimated that the mining industry projects a drop between 17-20% in production and around 10% in exports during the current year compared to 2019. He noted that expectations are given by the cessation of activities that the industry had due to the contingency, as well as by the exercise of a fiscal framework that does not favor investment, as well as for political, economic and insecurity issues. The fiscal framework is not new, since it arose from the 2013 tax reform in which it was decided to cancel the deductibility of investment in exploration. Virtually since then, investment started to slow down and this year it has practically stopped. The director said that exploration work involves a high amount of investment in dollars and if it does not obtain the expected results, it practically loses one hundred percent and that makes it unattractive to bet on the search for more deposits.
  • Francisco Quiroga Fernandez reported that authorities of the Undersecretariat of Mines of the Ministry of Economy (SE), have been carrying out verification tours in mining companies to corroborate compliance with health protocols in order to ensure that the restart of economic activity does not undermine the effort made by the authorities of different levels of government and society, as a whole, to face the challenge of COVID-19. He stated that verification tours have allowed corroborating that many companies are showing a great sense of co-responsibility. They are working together with health authorities, municipal presidents and workers’ representatives to reinforce the capacity for medical attention.
  • Alfredo Tijerina Guajardo, Director of the Mining Development Trust Fund (Fideicomiso de Fomento Minero) (FIFOMI) announced that it is granting resources to support exploitation work of small and medium sized mining firms. FIFOMI is focused mainly on providing low-interest rate loans to companies in the sector, basically those considered small, with annual turnover of up to MXP $200M, and medians with income of up to MXP $900M. He added that in mining there are three major phases to which financing is provided: exploration, development and exploitation, and that FIFOMI concentrates on the latter, since it is considered that the first two phases require so-called risk capital.
  • Javier Villarreal Gamez, Undersecretary of Labor of the National Committee of the Confederation of Workers of Mexico (CTM) stated that the government must give security to investment in mining. It is necessary that the Federal Government encourages, promotes and gives security to private investment in mining, through reforms, especially in fiscal matters, if necessary, because it would generate certainty, contrary to the prevailing situation at the moment. He stressed that mining is essential for national development, since it represents 3 percent of the country’s Gross Domestic Product and constitutes 8% of industrial GDP. He considered it difficult to forecast the pace of mining recovery in the remainder of 2020 and the prospects for 2021, but assured that the bet of all the sectors involved should be in favor of this industry remaining active. Noting that mining generates 370 thousand direct jobs and 2.3 million indirect jobs, which generates a production chain of 2.6 million total jobs, he commented that this sector is the source of raw materials for practically all industries in the country, from that of medications up to aerospace, just to name a few. He stressed that the jobs generated by mining are well paid, between 80 and 100% higher than in the rest of the industries, with contributions of profits that also far exceed the average of companies in other areas. Javier Villarreal, also general Secretary of the National Union of Workers of the Mining-Metallurgical Industry of the CTM, explained that the authorities must take actions to keep that sector growing.
  • Francisco Quiroga Fernandez, Undersecretary of Mining stated that, one month after the Mining Industry in Mexico has reactivated its activities, the mining sector has made a great effort to stay afloat in the face of adversity. He highlighted the effort that the sector has made to maintain the jobs and full wages of its workers. He also pointed out that only 75% of the workers have returned to the mines, while 25% more remain working from their homes, under the strict implementation of safe work and coordinated work with local authorities.
  • According to the National Institute of Statistics and Geography (INEGI), mining and metallurgical production fell 25.1% in April 2020 compared to April 2019, this caused by the suspension of operations in the face of the COVID-19 pandemic. This index that considers the activities of extraction, processing, smelting and refining of metallic and non-metallic minerals, decreased by 24.4% based on seasonally adjusted figures in the fourth month of 2020 compared to March. The INEGI reported that the production of non-coking coal decreased by 85.4% in an annual variation, while the production of lead decreased 53.3%, zinc 49%, gold 40.9%, coke 36.1%, pellets of iron 22.5%, silver 21.1% silver, fluorite 14.4%, gypsum and copper 10.8%. In contrast, sulfur was increased by 1.2%.

ON EXPLORATION

  • Sonoro Metals Corp., announced plans for a 6,000m 2020 Phase 1 drill program to test 20 targets at its Cerro Caliche project in Sonora. This program is part of the 50,000m of core and RC drilling announced previously by the company. The aim of the Phase 1 drill program is to test previously drilled, shallow, Au-bearing epithermal mineralization for the presence of deeper high-grade Au mineralization at elevations of 200-300m below surface. The Phase 1 drilling is expected to take up to five months.
  • Radius Gold Inc., reported high grade surface sampling results from its Amalia project in Chihuahua. Surface sampling from the untested California target have returned grades of up to 1.5 m @ 27 g/t Au. Radius has resumed the processing of the permits for stage 4 drilling at its Amalia project and expects to obtain them within the next six weeks.
  • Canasil Resources Inc., announced the commencement of an initial core drill program to test Ag-Au targets at its Nora project, which consists of structurally-controlled epithermal veins. The program will be focused on the undrilled Candy vein and Canasil plans to drill four sections, spaced over a strike length of 500m, all below high-grade Ag-Au samples from vein outcrops and rock dumps from earlier underground workings.

ON MINING

  • Consolidated Zinc Limited, advised that it has returned to pre-COVID-19 production rates at its Plomosas mine and Aldama processing plant in Chihuahua. Based on June production figures, the company anticipated the third quarter will be a better operational quarter than it has seen this year.
  • Gold Resource Corporation, the milestones of a decade of production, generating over $1 billion in revenue and distributing over $114 million in shareholder dividends from its Oaxaca Mining Unit in Mexico. “The Company announced commercial production from its Oaxaca Mining Unit (OMU) on July 1, 2010 estimating the Arista Mine’s life of mine at a minimum of nine years while only having three to four years of internally delineated resource at that time. Today, July 1, 2020, marks the milestone of one full decade of production from the OMU exceeding the Company’s then nine-year 2010 mine life estimate. With approximately four years of current proven and probable reserves, there is a strong possibility of a second decade of production ahead for the OMU”.

ON FINANCING

  • Golden Goliath Resources Ltd., announced a private placement to raise gross proceeds of up to $2.5M. The financing will consists of a combination of flow-through units priced at $0.20 with a half warrant priced at $0.30 and non flow-through units priced at $0.15 with a full warrant priced at $0.30 (San Timoteo project, Chihuahua).
  • Mag Silver Corp., entered into a sales agreement to raise gross proceeds of up to USD $50M.The sale of common shares will be made through “at the market distributions”. The company plans to use the net proceeds to fund the completion of construction of its Juanicipio project in Zacatecas, and for working capital and general corporate purposes.
  • San Marco Resources Inc., increased its previously announced flow-through non-brokered private placement from $2M to up to $3.5M, due to strong investor demand (Chunibas project, Sonora).
  • Oroco Resource Corporation, closed a non-brokered private placement for gross proceeds of $1.65M. Net proceeds will be used to advance its Santo Tomas project in Sinaloa, including site preparation for an exploration drill program, the acquisition of surface rights and permits, a 3D IP geophysical survey, and general corporate purposes.
  • Radius Gold Inc., received from Pan American Silver Corp., a payment of USD $150K in partial fulfillment of the Amalia project JV agreement.
  • Telson Mining Corporation, increased its previously announced non-brokered private placement and now intends to rise $1.4M. Net proceeds will be used to advance the construction of its Tahuehueto mine in Durango and for general working capital.
  • VanGold Mining Corp., concluded its warrant acceleration bonus program announced May 27, 2020 and June 12, 2020 for share purchase warrants ranted in connection with the Company’s 2019 non-brokered private placement financing. In total, 17,159,500 warrants were exercised under the bonus program for 17,159,500 common shares at a price of $0.10 per share for gross proceeds of $1,715,950 (Pinguico project, Guanajuato).
  • Excellon Resources Inc., signed a binding term sheet for a fully subscribed financing of CAD $8M through the private placement of secured convertible debentures of the company. The proceeds will be used to repay the USD $6M bridge loan with Sprott Private Resource Lending II (La Platosa mine, Durango).

ON RESOURCES AND DEVELOPMENT

  • Prime Mining Corp., released surface and underground sampling results from the Tahonitas deposit within its Los Reyes property in Sinaloa. Significant results were obtained at TR-1 with 3.24 g/t Au and 46 g/t Ag over 10.5m, including 8.37 g/t Au and 55 g/t Ag over 3m; TR-2 with 0.72 g/t Au and 18 g/t Ag over 30m, including 1.86 g/t Au and 18 g/t Ag over 7.5M; and TR-3b with 1.78 g/t Au and 71 g/t Ag over 63m, including 11.68 g/t Au and 334 g/t Ag over 4.5m and 5.7 g/t Au and 292 g/t Ag over 6m. The current Tahonitas deposit is modeled as part of a conceptual open pit that includes the Zapote South deposit.
  • Endeavour Silver Corp., reported drill results from the El Curso property at its Guanacevi mine in Durango. A total of 18 drill holes were collared on the Santa Cruz vein, of which 12 hit high grades over mineable widths. Drilling highlights include the following intersections: hole UCM-27 with 3.25 g/t Au and 1,085 g/t Ag (1,410 g/t AgEq) over a true width (TW) of 10m, including 14.88 g/t Au and 5,500 g/t Ag (6,988 g/t AgEq) over a TW of 0.5m; hole UCM-26 with 1.87 g/t Au and 762 g/t Ag (948 g/t AgEq) over a TW of 5.1m, including 3.5 g/t Au and 2,026 g/t Ag (2,376 g/t AgEq) over a TW of 0.6m; and UCM-25 with 1.43 g/t Au and 986 g/t Ag (1,129 g/t AgEq) over a TW of 4.8m, including 7.3 g/t Au and 7,451 g/t Ag (8,181 g/t AgEq) over a TW of 0.5m.

ON DEALS AND CORPORATE ISSUES

  • Discovery Metals Corp., reported results from its annual general meeting of shareholders (Cordero project, Chihuahua).
  • Magna Gold Corp., granted a total of 2, 250,000 incentive stock options to purchase common shares of the company to certain officers, directors and consultants of the company. Such options are exercisable at a price of $0.98 for a period of five years (San Francisco mine, Sonora).
  • One World Lithium Inc., provided a default status report to approve a temporary management cease trade order on the basis that it would be unable to file its annual consolidated financial statements, accompanying management’s discussion and analysis and related CEO and CFO certifications, for the year ended December 31, 2019 (Salar del Diablo project, Baja California Norte).
  • Silver Dollar Resources Inc., appointed Mr. Perry Durning and Mr. Frank (Bud) Hillemeyer as technical advisors to the Company. Perry and Bud formed La Cuesta International Inc. in 1993 and are recognized for their outstanding record of grassroots discoveries, particularly the San Sebastian, San Agustin, and Pitarrilla deposits in Durango, Camino Rojo in Zacatecas, and Los Gatos in Chihuahua.
  • Silver One Resources Inc., announced the initiation of trading on the OTCQX. The OTCQX Best Market provides value and convenience to U.S. investors, brokers and institutions seeking to trade Silver One shares under the ticker symbol SLVRF (Peñasco Quemado project, Sonora).
  • Argonaut Gold Inc., and Alio Gold Inc., completed the business combination to create a North American, diversified precious metals producing company with a strong portfolio of growth assets. Argonaut common shares will continue trading on the TSX, and Alio shares are expected to cease trading on the NYSE American on July 1, 2020 and be de-listed from the TSX after close of business on July 3, 2020 (El Castillo mine, Durango).
  • Brigadier Gold Limited, announced the appointment of Oscar Mendoza as special advisor to review and generate opportunities in Mexico that align with Brigadier’s plan for growth. (Cuatro Ciénegas project, Coahuila).
  • Canuc Resources Corporation, reported results from its annual general meeting of shareholders and appointed a new member of its board of directors (San Javier project, Sonora).
  • Mammoth Resources Inc., reminded shareholders of the granting of a Management Cease Trade Order (Tenoriba project, Chihuahua). “The company found it prudent to employ this Exemption, Instrument 51-502 which enables Mammoth excemptive relief to delay the filing of its audited annual financial statements, the accompanying management’s discussion and analysis, as well as the associated CEO and CFO certifications for the year ended January 31, 2019, due June 1, 2020 and that these filings are expected to be completed within the 45 day period, July 15, 2020”.
  • Sierra Metals Inc., reported results from its annual general meeting of shareholders (Cusi mine, Chihuahua).
  • Defiance Silver Corp., confirmed that the Company’s management is unaware of any material change in the Company’s operations that would account for the recent increase in market activity (San Acacio project, Zacatecas).

ON SOCIAL RESPONSIBILITY

  • Agnico Eagle Mines Limited, launched its policy “Stay Safe Stay Watchful”, as countries where the company operates are cautiously emerging from the global blockade. The company is helping communities and employees to stay safe as they embrace the “new normal.” In order to minimize the spread of this virus. At its Pinos Altos and la India mines in Sonora, Mexico, the decision was made to have the mine’s doctors work at the health centers in the surrounding communities, so they can examine local patients and make home visits to ensure that vulnerable members of the community receive adequate medical care.
  • Minera Penmont (Fresnillo plc), announced that it meets extraction regulations with new technology and innovative tools that allow the protection of the environment, the safety of employees in production plants and the protection of communities and their environment. Minera Penmont has the cyanide management permit from its creation and the origin of its mining activity, which was granted by the Ministry of Environment and Natural Resources (SEMARNAT). In addition, it has the authorization of COFEPRIS and all the permits requested by the General Law of Ecological Balance and Protection of the Environment (LGEEPA). In addition to the previous legislation, Fresnillo plc joined, since 2011, the Cyanide Code, an international voluntary program developed by the International Institute of Cyanide Management (ICMI). This Code was established in 2002 and aims to reduce the potential exposure of workers and communities to harmful concentrations of cyanide; In addition, ICMI conducts audits of processes to recertify Minera Penmont’s credentials every three years; meanwhile, the company exclusively purchases cyanide from manufacturers certified by the Institute. Based on this program, the company works under the following criteria: protect communities and the environment during cyanide transport; protect workers’ health and safety from exposure by this substance and train workers and emergency response personnel in its handling.
  • Consorcio Minero Peña Colorada S.A. de C.V., delivered the Medical Care Unit to the General Hospital of Manzanillo in Colima state. With an investment of MXP $ 4.6M the company carried out the transformation of this 1,200 m2 space, which consisted of conditioning and equipping 3 completely separate and independent medical care modules: general and specialty medical consultation, hospitalization area for men and women, and a dedicated space for major emergencies and observation. This facility has the capacity to serve up to 108 patients a day, originating from Manzanillo, Minatitlán and neighboring municipalities of Jalisco.
  • The Grupo Mexico Foundation, donated approximately 45,000 medical supplies to the Zacatecas Health Secretariat, and three pressure ventilators to the regional hospital of Nueva Rosita, Coahuila. The material received in Zacatecas was: 4,500 masks and 4,337 protective glasses, 4,000 aprons, 6,400 mouth guards, 32 goggles and 25,200 monitor electrodes. Also, nitrile gloves, antiseptic soap and intubation cannulas. All this will help the health authorities to face the current health contingency. In Coahuila, three pressure ventilators were delivered for the care of patients with COVID-19, although the medical director of the hospital pointed out that at the moment there has been no need to use these mechanical ventilators.
  • Minera San Julian (Fresnillo plc), delivered a third package with additional 4,000 face mask to the Municipal Council of Guadalupe y Calvo, Chihuahua, which are made by a sewing workshop in the town of Yerbitas. This personal protective equipment will be distributed to the population of the different towns of the municipality, with the objective of carrying out preventive work in the face of the COVID-19 pandemic.

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, visible gold (VG) in a high sulphidation epithermal system in a prospect in Sonora, Mexico.  Photo by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the Third Week of June, 2020.

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Ptygmatic folds

By Miguel A Heredia

During the twenty five week of the year (June 15th to June 21tt, 2020), at least 44 press releases were announced by companies working in Mexico, with twelve disclosing deals and corporate issues, ten announcing financial rounds, six commenting on Mexican issues, five informing on exploration results, five discussing on social issues, four reporting on resources and developments, and two communicating production and financial results, ON MEXICO ISSUES, Minera Fresnillo published a press release regarding the events of last Friday, June 12, when a group of people committed excesses in the vicinity of the Fresnillo mine in Zacatecas. Fresnillo plc announced recruitment of 130 mine workers who labored at the Francisco I Madero mine in Zacatecas.  Bacanora Lithium announced that it is set to start production at its Sonora project in Mexico in 2022, despite COVID-19 interruptions. Mexico has some of the largest undeveloped Ag deposits that have been slowed by economic weakness and price fluctuations. Senator Miguel Angel Lucero Olivas, president of the Mining and Regional Development commission, will present a point of agreement to maintain the Undersecretariat of Mining and, if possible, raise it to the Secretariat level. ON EXPLORATION, In Sonora, Magna Gold announced plans to conduct initial drill programs at its La Pima, San Judas and Veta Tierra projects. In Sinaloa, Vizsla added a second rig at its Panuco project, and Kootenay released drill results from the first core hole collared at its Copalito project. In Durango, Mithril provided an update on its Copalquin project.  In Jalisco, GoGold released drill results from nine holes collared at its Los Ricos South project. ON MINING, Magna Gold provided an update and reported production and financial results for May 2020 from its San Francisco mine in Sonora. Santacruz reported consolidated Q4 and full year 2019 production and financial results from their Mexican mine operations.  ON FINANCING, Aztec Minerals arranged a non-brokered private placement for gross proceeds of CAD $3M (Cervantes project, Sonora). Candelaria Mining entered in a medium term loan facility for USD $9M (Pinos project, Zacatecas).  Mammoth closed a non-brokered private placement for net proceeds of $141,250, which due to demand was increased to $167,475 (Tenoriba project, Chihuahua). Megastar closed a non-brokered private placement for gross proceeds of $ 926,800 (Rama de Oro, Oaxaca). Telson formed a strategic funding alliance with Accendo Banco for USD $12M (Tahuehueto project, Durango). First Mexican closed the first tranche of its previously announced brokered private placement for gross proceeds of $1,235,229.73 (Guadalupe project, Sonora). GR Silver completed a bought deal private placement for gross proceeds of $9,153,000 (Plomosas project, Sinaloa). Magna Gold announced a non-brokered private placement for gross proceeds of up to $7,000,750 (San Francisco mine, Sonora).  Mexus announced that it has paid $178,855.49 to satisfy an outstanding debt obligation (Santa Elena mine, Sonora). One World Lithium approved a temporary management cease trade order which, if granted, will prohibit trading in securities of the Company by certain insiders of the Company, whether direct or indirect (Salar del Diablo project, Baja California Norte). ON RESOURCES AND DEVELOPMENT, Discovery Metals extended higher grade and expanded the drill program at its Cordero project in Chihuahua. Canuc announced that it signed a Memorandum of Understanding (MoU) with M3SH Technologies Inc., to distribute and sell technological solutions (San Javier project, Sonora). Magna Gold provided plans for its San Francisco mine in Sonora, and reported that a mine design has been completed and plans to advance a pilot test program for its Mercedes project in Sonora.  Sierra Metals released drill results and confirmed the discovery of a new high grade Ag area at its Cusi mine in Chihuahua. ON DEALS AND CORPORATE ISSUES, Bacanora Lithium received notification of the off-market transfer of a portion of the shares beneficially owned by Mark Hohnen (Sonora Lithium project, Sonora).  Fortuna Silver reported results from its annual general meeting of shareholders (San Jose mine, Oaxaca). Oroco announced that its shares have been approved to trade on the OTCQB Venture market in USA (Santo Tomas project, Sinaloa). Prime Mining announced key management changes and amended its Los Reyes option agreement in Sinaloa. Silver Dollar signed a letter of intent (LOI) to acquire La Joya project, Durango from First Majestic.  Newmont was ranked top miner in the 100 best corporate citizens list for 2020 (Peñasquito mine, Zacatecas). Torex announced management changes and results from its annual general meeting of shareholders (El Limón-Guajes mine complex, Guerrero). Tarachi Gold retained Digital 257 Technologies Inc., for digital media and capital market communication services and granted stock options to directors, officers and consultants of the compnay (Juliana project, Sonora).  SilverCrest presented results from its annual general meeting of shareholders (Las Chispas project, Sonora). Silver Spruce granted 6.75M stock options to directors and consultants of the company (Pino de Plata project, Chihuahua). ON SOCIAL RESPONSIBILITY, Mining companies operating in Mexico have shown their support in different ways to face the COVID-19 pandemic. The Grupo Mexico Foundation donated preventive kits to the Fire Department, Red Cross and Civil Protection of the Sonoran capital, and delivered health and safety kits to the Taxco, Guerrero health sector.  Minera Media Luna (Torex Gold), delivered preventive material for the COVID-19 health contingency in the municipalities of Cocula and Valerio Trujano, in Guerrero State. Minera Penmont (Fresnillo plc), strengthened security protocols to guarantee safe and contagion-free workspaces for its collaborators. Mina San Dimas of First Majestic received medical equipment to face contingency for COVID-19.

 ON MEXICO ISSUES

  • Minera Fresnillo (Fresnillo plc), published a press release regarding the events of last Friday, June 12, when a group of people committed excesses in the vicinity of the Fresnillo mine in Zacatecas, in which there were arrests of armed persons. The company initiated legal proceedings before the competent authority. Minera Fresnillo reiterated its respect for union autonomy, and the application of the Mexican rule of law, in particular, current labor legislation. The company also pointed out that there is a disinformation campaign promoted by a group of people that has not been conducted by the institutional media established by the law.
  • Fresnillo plc, announced recruitment of 130 mine workers who labored at the Francisco I Madero mine in Zacatecas. The Francisco I Madero mine was indefinitely suspended a month ago but Fresnillo called them to present their documentation and participate in the contracting process to join the Fresnillo and Saucito mines in Fresnillo, Zacatecas. With this measure, the Mexican mining company will increase its base of collaborators, which will have a positive impact in the region, as 130 new direct and 520 indirect jobs will be generated.
  • Bacanora Lithium plc, announced that it is set to start production at its Sonora project in Mexico in 2022, despite COVID-19 interruptions. The company could benefit from the momentum of a “green recovery” after the pandemic that could spur growth in the electric vehicle market, according to the analyst. The USD $420M project, to be carried out through a 22.5: 77.5% JV with strategic partner Ganfeng Lithium, will be the first to produce significant volumes of lithium in Mexico. Production is estimated to approximate 17,500tonnes per year of lithium carbonate, doubling to 35,000 tonnes starting in 2026 following a USD $380M expansion.
  • Mexico has some of the largest undeveloped Ag deposits that have been slowed by economic weakness and price fluctuations. Four deposits with reserves totaling 178 B Oz Ag remain in the list: Cordero deposit in Chihuahua and owned by Discovery Metals, has resources for 595 M Oz Ag; Pitarrila in Durango, owned by SSR Mining with 552M Oz Ag, Metates in Durango, owned by Chesapeake with 526M Oz Ag; and La Preciosa in Durango owned by Coeur with 105M Oz Ag.
  • Senator Miguel Angel Lucero Olivas, president of the Mining and Regional Development commission, will present a point of agreement to maintain the Undersecretariat of Mining and, if possible, raise it to the Secretariat level. Mexico can gain strength thanks to mining and this is a key point of support for the economic reactivation of the country, therefore it is necessary to have a government agency that can lead and represent a strategic sector such as mining.
  • Undersecretary of Mining, Francisco Quiroga Fernández, assured that the six mines he visited in Sonora are free of COVID-19. He also verified that strict protocols are being applied. So far, there have been no confirmed or probable cases of COVID-19 in any of the resumed Sonoran mines. The Undersecretariat of Mining, previously had already visited other mines in the states of Durango, Chihuahua, Zacatecas, and Coahuila, pointed out that there have been no outbreaks or contagions of COVID-19.

ON EXPLORATION

  • Magna Gold Corp., announced plans to conduct initial drill programs at its La Pima, San Judas and Veta Tierra projects in Sonora. At La Pima, a highly prospective high-grade underground Ag project located 30km NE of the San Francisco open pit, Magna plans to commence a 2,000m core drill program once it completes the permitting process and surface ownership negotiations. At San Judas, located 50 km W of San Francisco open pit, it wants to initiate a first phase of RC drilling in Q4,2020, which will comprises 3,000m to test three of the seven priority targets identified to date. At Veta Tierra, located 5.5 Km NW of the San Francisco open pit, the company wants to re-initiate activities to complete an unfinished drill program that was commenced by Timmins Gold in 2013, which will include 2,000 of RC to test the lateral continuity of the Au mineralization indicated by previous drilling along a 300m trend of an exposed diorite intrusion.
  • Vizsla Resources Corp., added a second rig at its Panuco project in Sinaloa. The company recently resumed its 14,500m drilling program focused on testing over 20 initial drill targets on its unexplored Panuco mining district. To date, only approximately 4,500m have been drilled.
  • Kootenay Silver Inc., released drill results from the first core hole collared at its Copalito project in Sinaloa. The first hole (BDH-20-001) reached a depth of 105.2m and tested the eastern edge of the Cinco Señores vein, returning 106 g/t Ag over 22m, including 1.09 g/t Au and 244 g/t Ag over 3m and including 286 g/t Ag over 1m, and other interval of 0.25 g/t Au and 250 g/t Ag over 5m, including 0.1 g/t Au and 360 g/t Ag over 1m. The 3,500m drill program will continue with the next holes planned to test the Cinco Señores vein where chip sampling returned encouraging Au and Ag values such as 2.9 g/t Au and 426 g/t Ag over 3.2m; 0.24 g/t Au and 401 g/t Ag over 5.3m; 1,155 g/t Ag over 1m; 1.8 g/t Au and 396 g/t Ag over 1m; and 534 g/t Ag over 1m. Five additional principal veins of epithermal affinity remain to be drill tested.
  • Mithril Resources Limited, provided an update on the exploration activities at its Copalquin project in Durango. “A permit for the drill program was issued in 2019 and is being fast tracked and expanded to include additional drill target areas.  All drill pads have been constructed for the initial drill program with clear access tracks established.  Drilling support infrastructure is progressing as planned, ahead of the arrival of the drill rig in the coming weeks”. Drilling will begin at La Soledad target, where over 600m of vein have been mapped at surface with an additional 400m of vein splaying off towards the El Indio mine workings to the east. Drilling will continue at Los Pinos and Los Reyes targets, each with approximately 400m of vein mapped at surface.  These structures are the eastern extension of El Cometa. There are other interesting targets in the property but need further mapping and sampling to better define drill targets.
  • GoGold Resources Inc., released drill results from nine holes collared at its Los Ricos South project in Jalisco, including three at San Juan, four at the main Area, one at Rascadero and one at the East Vein. Significant intersections were encountered in hole LR-GG-174 (Main Area) with 2.56 g/t Au and 173 g/t Ag (4.86 g/t AuEq or 365 g/t AgEq) over 15m, including 8.33 g/t Au and 496 g/t Ag (14.94 g/t AuEq or 1,120 g/t AgEq) over 4.4m; hole LR-GG-169 (San Juan) with 3.18 g/t Au and 188 g/t Ag (5.68 g/t AuEq or 426 g/t AgEq) over 4.1m; and hole LR-GG-178 (East Vein) with 1.09 g/t Au and 97 g/t Ag (2.38 g/t AuEq or 178 AgEq) over 4.4m, including 1.88 g/t Au and 171 g/t Ag (4.17 g/t AuEq or 312 g/t AgEq) over 2.0m.

ON MINING

  • Magna Gold Corp., provided an update on its San Francisco mine in Sonora and reported May 2020 production and financial results. In this period, Magna produced and sold 2,349 Oz Au at an estimated cash cost of USD $607 per Oz, resulting in Au sales of USD $4.2M and an operating profit of USD $2.8M. It also announced the commencement of mining and processing fresh mineralized material in August.
  • Santacruz Silver Mining Ltd., reported Q4 and full year 2019 production and financial results from their Mexican mine operations. In Q4, 2019, Santacruz processed 220,154 tonnes to produce 1.32M Oz AgEq at a cash and AISC of USD $ 18.75 and $21.29 per Oz AgEq produced respectively. It reported revenues of USD $9,964 and a net loss of USD $16,017. In 2019 full year, the company processed 469,291 tonnes to produce 2.83M Oz Ag at a cash and AISC of USD $18.34 and USD $21.55 per Oz AgEq produced respectively. It reported revenues for USD $27,140 and a net loss of USD $20,432.

ON FINANCING

  • Aztec Minerals Corp., arranged a non-brokered private placement financing for gross proceeds of CAD $3M with sophisticated investors, shareholders and directors of the Company. Finder´s fees may be payable in cash and / or warrants on certain portions of the financing, subject to regulatory approvals. Part of the net proceeds will be used to conduct exploration work on its Cervantes porphyry Cu-Au project in Sonora and for general working capital purposes.
  • Candelaria Mining Corp., entered into a medium term loan facility with Accendo Banco S.A. for USD $9M. Funds will be used for financing construction of its Pinos project in Zacatecas and for working capital purposes.
  • Mammoth Resources Corp., closed a non-brokered private placement for net proceeds of $141,250, the same that due to demand was increased to $167,475. Gross proceeds will be used for working capital purposes, including corporate development expenses (Tenoriba project, Chihuahua).
  • Megastar Development Corp., closed a non-brokered private placement for gross proceeds of $926,800. Net proceeds will be used to continue exploration on multiple properties within the Oaxaca, Mexico Au-Ag belt optioned from Minera Zalamera S.A. de C.V. (Yautepec, Magdalena and Rama de Oro projects, Oaxaca).
  • Telson Mining Corporation, formed a strategic funding alliance with Accendo Banco for USD $12M. Funds will be used for the construction of the Tahuehueto mining project in Durango and general working capital purposes. Accendo also intends to purchase up to USD $500K of existing debt with Tahuehueto mining project´s suppliers and convert the debt into common shares of Telson. Additionally, Telson intends to conduct a non-brokered private placement for up to $750K.
  • First Mexican Gold Corp., closed the first tranche of its previously announced brokered private placement for gross proceeds of $$1,235,229.73 (Guadalupe project, Sonora).
  • GR Silver Mining Ltd., completed a previously announced bought deal private placement for gross proceeds of $9,153,000. GR plans to use the net proceeds to fund resource expansion and drilling at its Plomosas and San Marcial projects in Sinaloa, and for working capital and general corporate purposes. Brokers who helped with the financing will receive a cash commission of $636,660 and an aggregate of 2,358,000 non-transferable broker warrants at an issue price for a period of 12 months from the closing date of the offering.
  • Magna Gold Corp., announced a non-brokered private placement for net proceeds of up to $7,000,750 and includes lead investments by Eric Sprott and two mining industry participants. The net proceeds from the private placement will be used for working capital purposes in connection with the company’s existing projects. In connection with the private placement, certain parties may receive a finder’s fee payment equal to 6% of the gross proceeds of the offered shares (San Francisco mine, Sonora).
  • Mexus Gold US, announced that on June 13, 2020 it has paid $178,855.49 to satisfy an outstanding debt obligation (Santa Elena mine, Sonora).
  • One World Lithium Inc., approved a temporary management cease trade order which, if granted, will prohibit trading in securities of the company by certain insiders of the company, whether direct or indirect (Salar del Diablo project, Baja California Norte).

ON RESOURCES AND DEVELOPMENT

  • Discovery Metals Corp., released results from 8 drill holes, and extends higher grade at is Cordero project in Chihuahua. Highlights include hole C20-326 with 2,470 g/t Ag, 0.02 g/t Au, and 0.4% Zn (2,489 g/t AgEq) over 0.7m; hole C20-328 with 69 g/t Ag, 0.13 g/t Au, 1.1% Pb, and 1.9% Zn (197 g/t AgEq) over 51.9m, and 62 g/t Ag, 0.22 g/t Au, 1.2% Pb, and 1.3% Zn (174 g/t AgEq) over 62.2m; and hole C20-330 with 38 g/t Ag, 0.16 g/t Au, 0.8% Pb, and 0.8% Zn (112 g/t AgEq) over 85.5m. Based on results Discover has expanded its drilling program from 30,000-35,000m to 50,000-55,000m and will be focused on: 1) “Targeting of broad zones of breccia-hosted mineralization in the east and north-east of both mineralized corridors and 2) Testing of the width, grade and continuity of extensive high-grade vein systems identified in and adjacent to historical artisanal underground workings during the early history of the Project”.
  • Magna Gold Corp., provided an update on its Mercedes and San Francisco properties in Sonora. It reported that a mine design has been completed for its Mercedes project in Sonora, based on the initial drill program completed last year. It also reported that a suite of metallurgical tests work is currently underway. Magna´s objective is to extract 20K Oz Au with minimal associated operating and capital expenditures to provide additional information on the deposit that will guide future drilling and work programs. At San Francisco mine, it announced the execution of an initial four-month drill program in and around San Francisco and La Chicharra open pits to support the conversion of mineral resources to reserves. Magna also has retained Micon International Limited to complete a PFS to re-evaluate the resource model, examine potential operational improvements, and develop an optimized production schedule that incorporates all currently available drill data, updated operating costs and revised gold price assumptions. It is expected to be completed by the end of July, 2020.
  • Sierra Metals Inc., released drill results and confirmed the discovery of a new high grade Ag area called Northeast-Southwest system of epithermal veins at its Cusi mine in Chihuahua. The new high-grade silver vein system was discovered as a consequence of a combination of mine development work in recent months and confirmatory drilling. Significant drill intersections were encountered in hole DC20M658 with 0.1g/t Au, 304 g/t Ag, 0.34%Pb, and 0.25% Zn (327 g/t AgEq) over a true width (TW) of 9.35m; hole DC20M677 with 0.03 g/t Au, 1,140 g/t Ag, 0.37% Pb, and 0.36% Zn (1,163 g/t AgEq) over a TW of 4.90m; hole DC20M686 with 0.04 g/t Au, 428 g/t Ag, 0.46% Pb, and 0.76% Zn over a TW of 17.45m; and hole DC20M687 with 0.45 g/t Au, 890 g/t Ag, 1.74% Pb, and 3.2% Zn (1,151 g/t AgEq) over a TW of 0.85m.

ON DEALS AND CORPORATE ISSUES

  • Bacanora Lithium plc., received notification of the off-market transfer of a portion of the shares beneficially owned by Mark Hohnen, Executive Chairman of the Company. The transfer is ultimately to an existing superannuation pension fund of Mr. Hohnen (Sonora Lithium project, Sonora).
  • Canuc Resources Corporation, announced that it signed a Memorandum of Understanding (MoU) with M3SH Technologies Inc. This will allow Canuc to distribute and sell technological solutions enabling Canuc to facilitate application with mining and extractive industry clients (San Javier project, Sonora).
  • Fortuna Silver Mines Inc., reported results from its annual general meeting of shareholders (San Jose mine, Oaxaca).
  • Oroco Resource Corp., announced that its shares have been approved to trade on the OTCQB Venture market in USA under the symbol “ORRCF”, effective immediately (Santo Tomas project, Sinaloa).
  • Prime Mining Corp., announced key changes in executive management and board of directors, appointing its new CEO, Executive VP, and two new board members. The company also announced that it entered into an amendment to its option agreement on Los Reyes project in Sinaloa, with Vista Gold Inc. The amendment provides for the cancellation of all ongoing NSR and back-in rights held by Vista, in consideration for accelerating the final USD $1.5M option payment owing to Vista and completing a series of additional cash payments totalling USD $2.1M. “Upon the company making the option payment, Vista will no longer retain a capped NSR on production from open-pit mining and a perpetual NSR on production from underground mining.  In addition, Vista will no longer have the Back-in Right to assume a 49% non-carried interest in any underground mining project developed at the property”.
  • Silver Dollar Resources Inc., signed a letter of intent (LOI) to acquire an initial 80% of interest following the exercise of which it may earn an additional 20% for an aggregate 100% interest in La Joya project, Durango from First Majestic Silver Corp. To acquire an 80% interest in la Joya, Silver Dollar will make a cash payment of $1.3M over four years, issue shares equal to 19.9% of Silver Dollar´s then outstanding common shares within one year, incur $1M of exploration expenditures within the first five years, and grant First Majestic a 2% NSR. If Silver Dollar incurs the exploration expenditures within the first three years; however, First Majestic will waive the remaining $600K – or nearly half – of the cash option payments. Silver Dollar may exercise its second option and acquire the remaining 20% (for an aggregate 100%interest) of the La Joya property by providing notice to First Majestic within 30 days of earning the first 80% interest and issuing to First Majestic additional shares equal to 5% of Silver Dollar’s then-outstanding common shares within five years. If Silver Dollar does not provide such notice, Silver Dollar and First Majestic will enter into a joint venture.
  • Newmont Corporation, was ranked top miner in the 100 best corporate citizens list for 2020. It moved from 20th on last year´s list to 13th overall in 3BL Media´s (formerly Corporate Responsibility Magazine´s) 100 Best Corporate citizens (Peñasquito mine, Zacatecas).
  • Torex Gold Resources Inc., notified management changes and results from its annual general meeting of shareholders. It announced the appointment of its new CEO, Executive Chair, and Independent Director (El Limón-Guajes mine complex, Guerrero).
  • Tarachi Gold Corp., retained Digital 257 Technologies Inc., for digital media and capital market communication services. The Company will compensate Digital 257 $10K per month for three months of service. Tarachi also granted 2,735,000 incentive stock options to directors, officers and consultants of the company at an exercise price of $0.31 per share (Juliana project, Sonora).
  • SilverCrest Metals Inc., presented results from its annual general meeting of shareholders (Las Chispas project, Sonora).
  • Silver Spruce Resources Inc., granted 6.75M stock options to directors and consultants of the company with an exercise price of $0.05 per share (Pino de Plata project, Chihuahua).

ON SOCIAL RESPONSIBILITY

  • Mining companies operating in Mexico, have shown their support in different ways to the communities where they operate to face the COVID-19 pandemic. According to the Mexican Mining Chamber (CAMIMEX), 26 mining companies that operate in 16 entities of the country have made different contributions to the sanitary emergency. The contributions have been of a different nature, including donations of medical equipment and personal protection kits, basic services such as water and electricity, medical services, pantries, etc.
  • The Grupo Mexico Foundation, donated preventive kits to the Fire Department, Red Cross and Civil Protection of Hermosillo, Sonora, in order to support public institutions that work daily for the benefit of the community in the face of the health contingency by COVID-19. The Grupo Mexico Foundation delivered 500 protection kits containing goggles, N95 masks to the Fire Department, 500 kits to Civil Protection, and 300 kits to the Red Cross Delegation in Hermosillo, Sonora. It also delivered 35 health and safety kits to the Taxco, Guerrero health sector such as the Adolfo Prieto General Hospital, the Mexican Red Cross Taxco delegation, the Mexican Institute of Social Security and Civil Protection. The donation consisted of 10 packages of safety kits that include tyvek suits, face shield and gloves, and the donation of 25 health kits consisting of tyvek suits, gloves, caps, shoe covers and disposable aprons.
  • Minera Media Luna (Torex Gold), delivered preventive material for the COVID-19 health contingency and surgical material to strengthen the health infrastructure in the Health Centers and Houses of the communities of Nuevo Balsas, Atzcala, Real del Limón and La Fundición, in the municipality of Cocula and Valerio Trujano and in the neighborhood of Tepecoacuilco, in Guerrero state.
  • Minera Penmont (Fresnillo plc), strengthened security protocols to guarantee safe and contagion-free workspaces for its collaborators. The protocols that the company has implemented have been in accordance with the guidelines defined by the Secretaries of Health, Economy and Labor of the Federal Government. Minera Penmont reinforced the cleaning tasks in all its facilities and disinfection of transport trucks for collaborators and suppliers. It placed disinfectant gel in areas of greater affluence and promoted the use of masks in offices and respirators in operating areas. In addition, it installed sanitary filters in which the health status of the personnel was evaluated with first-class equipment and the latest technology such as infrared thermometers and a thermal imager.
  • Mina San Dimas of First Majestic received medical equipment to face contingency for COVID-19 in the San Dimas communities through the company clinic. It received specialized medical equipment to care for patients with acute respiratory diseases, other equipment including oxygen concentrators, laryngoscopes, as well as a capnograph and a portable emergency ventilator that together have a market price of around USD $65K.

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, ptygmatic folds developed in a meta-sedimentary sequence in an orogenic Au prospect in Michoacan, Mexico.  Photo by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the Fifth Week of January, 2020.

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Sulphur crystals in an epithermal hot spring system

By Miguel A Heredia

During the fifth week of the year (January 27th to February 2nd, 2020), at least 33 press releases were announced by companies working in Mexico, with nine discussing issues on social responsibility, eight disclosing deals and corporate issues, five communicating production results, four announcing financial rounds, three reporting on resources and developments, three informing on exploration results, and one commenting on Mexican issues.  ON MEXICO ISSUES, Jorge Vidal Ahumada, Minister of Economy of Sonora State, announced that more of USD $500M will be invested in Sonora in 2020.  ON EXPLORATION, In Sonora, Ridgestone reported high-grade rock sampling from its Rebeico project, and Azure provided a report of the activities carried out during the period Q4, 2019 at its Sara Alicia project. In Chihuahua, Consolidated Zinc identified a high-grade Au system nearby its Plomosas mine.  ON MINING, Excellon, and Santacruz announced Q4 and annual 2019 production results from their Mexican operations. Telson resumed full scale mining and milling operation at its Campo Morado mine in Guerrero. Mexus reported that additional material has been crushed and placed on the leach pad at its Santa Elena mine in Sonora.  Endeavour provided 2020 production and cost guidance for their Mexican mining operations.  ON FINANCING, Azure completed a $4M placement to conduct an aggressive exploration program on its Alacrán project in Sonora, and also announced that it received payments for MXP $16.5M from the Mexican Tax Office for the recovery of IVA (GST). Millrock announced its plan to conduct a non-brokered private placement for gross proceeds of up to $1M (Batamote project, Sonora). Gold Resource declared January 2020 monthly dividend for its shareholders (Arista mine, Oaxaca).  Telson has been marketing a non-brokered private placement for gross proceeds for up to CAD $3M (Campo Morado mine, Guerrero).  ON RESOURCES AND DEVELOPMENT, Azure announced results from the activities performed at its Alacrán and Oposura project in Sonora in the period Q4, 2019. Great Panther announced 2019 exploration results and 2020 plans for its Mexican operations. Minera Alamos entered into a purchase agreement to acquire a crushing system for its Santana mine in Sonora. Endeavour updated 2019 mineral reserve and resource estimate for its three Au-Ag Mexican mines. ON DEALS AND CORPORATE ISSUES, Bacanora Lithium announced results from its annual general meeting of shareholders (Bacanora project, Sonora). Plata Latina entered into an agreement with Electrum for its three Mexican properties (Vaquerias, Palo Alto, and La Joya). Minaurum signed an option to acquire 100% of the Aurifero Gold project in Sonora, expanding its land control in the Alamos mining district. Mexican Gold announced that it entered into a binding letter agreement to complete business combination with New Found Gold (Las Minas, Veracruz). Equinox Gold and Leagold shareholders approved merger to create a premier Americas Au producer (Los Filos mine, Guerrero). Minera Alamos entered into a purchase agreement to acquire a crushing system for its Santana mine in Sonora. Mithril announced results from their 2019 activities, which consisted mainly on the Sun Minerals acquisition and the exclusive option to acquire 100% of the Copalquin project in Durango. Fortuna provided an update on the status of disputed royalty in one of its extractive mining concessions in its San Jose mine in Oaxaca. ON SOCIAL RESPONSIBILITY, The Mexican President, Luis Manuel López Obrador (AMLO) thanked Peñoles for joining the program “Youth Building the Future”. Governor of Sonora, Claudia Pavlovich Arellano, opened the Community House of Argonaut Gold Inc in La Colorada, Sonora. A labor agreement between the municipality of Guadalupe and Calvo, Chihuahua and Fresnillo plc (San Julian mining company) was signed to hire personnel to work at the mine. Fresnillo plc demonstrates Social Responsibility since it works on four strategic axes including education, health, capacity development, and environmental care. Grupo Mexico delivered seed capital in Nueva Rosita, Coahuila, and presented a large urban development project for San Luis Potosi. Minera Media Luna (Torex Gold) supported local communities nearby its Mexican mining operation in Guerrero with medical equipment. Minera Peñasquito (Newmont Goldcorp) delivered tractors and agricultural equipment to the inhabitants of the Ejido El Vergel in the municipality of Mazapil, Zacatecas. Newmont Goldcorp was recognized for its high social, environmental and corporate governance performance, which places it as a leader in the mining sector worldwide.

ON MEXICO ISSUES

  • The Minister of Economy of Sonora, Jorge Vidal Ahumada announced that more than USD $500M will be invested in Sonora in the mining sector in 2020.

ON EXPLORATION

  • Ridgestone Mining Inc., reported high-grade rock sampling results of 188 samples collected at its Rebeico project in Sonora in an area of 200m by 100m with widths between 1-3m. Highlights include up to 12.95 g/t Au, with 8 samples returning > 4 g/t Au, 30 samples returning > 1 g/t Au, and 33 samples returning between 0.1-1.0 g/t Au. It also reported that 73 samples returned >0.1% Cu, with 14 samples returning >0.4% Cu with a peak of 0.65% Cu. High Bi values associated with Au and Cu suggests a proximal intrusion-related mineralized system. Mineralization is hosted by brecciated andesite with variable amounts of gossan ± magnetite ± quartz, as well as chloritized and fractured andesites peripheral to the brecciated zones.
  • Azure Minerals Limited, provided a report of the activities carried out during the period Q4, 2019 at its Sara Alicia project in Sonora. It acquired 100% of the Sara Alicia II mining concession. Azure had acquired the original Sara Alicia mining concession in 2017 but also it was recognized that a second, adjoining mining concession named Sara Alicia II had been cancelled by the mining registry. After almost 2 years later, the Federal Appeal Court ruled the cancellation was invalid and title of the concession was restored to a local Mexican family who had owned both Sara Alicia mining concessions since the 1930s. For a consideration of USD $80K, a purchase agreement between the owners and Azure was executed and 100% ownership of the Sara Alicia II concession was transferred to Azure. With the control of the ground now confirmed, the company plans to conduct geological mapping, sampling and a geophysical survey in H1, 2020.
  • Consolidated Zinc Ltd, identified with regional exploration, a high-grade Au system located 3 -5Km NW of its Plomosas mine. Rock chip sampling at La Chona-Enrique and Potrero targets returned encouraging results with grades of 2.55 g/t Au; 4.77 g/t Au; 7.42 g/t Au; 27.5 g/t Au, and 61 g/t Au, and 2.19% Cu; 2.88% Cu, 2.91% Cu, and 4.06% Cu. La Chona-Enrique areas consist of narrow quartz-calcite-hematite veins with malachite from 0.3-1.2m wide, which have been interpreted to be mesothermal in origin. Potrero target consists of a dominant felsic intrusive that appears to be responsible of the brecciation and alteration of the host rock. Mapping and sampling of these target areas is ongoing in order to define drill targets.

ON MINING

  • Excellon Resources Inc., announced Q4 and annual 2019 production results from its Platosa mine in Durango. The company mined 19,622 tonnes and processed 19,828 tonnes of 435 g/t Ag, 4.8% Pb, and 6.4% Zn, recovering 91.7%, 80.2%, and 76.5% respectively to produce 259.3K Oz Ag, 1.7M Lb Pb, and 2M Lb Zn. During the full year, the company mined 74,876 tonnes and processed 75,247 tonnes of 497 g/t Ag, 4.8% Pb, and 6.9% Zn, recovering 89.9%, 79.4%, and 80.8% respectively, to produce 1.05M Oz Ag, 6.1M Lb Pb, and 8.4M Lb Zn.
  • Santacruz Silver Mining Ltd., reported Q4 and full year 2019 production and financial results from their Zimapan, Veta Grande and Rosario mining operations. During Q4, 2019, the company processed from its Zimapan mine in Hidalgo State, 161,071 tonnes of 72 g/t Ag, recovering 66.4%, to produce 248.6K Oz Ag, 1.56M Lb Pb, 5.8M Lb Zn, and 1.1M Lb Cu (996K Oz AgEq at a grade of 282 g/t AgEq). During the full year 2019, the company processed 243, 313 tonnes of 73 g/t Ag, recovering 69.9%, to produce 400K Oz Ag, 2.6M Lb Pb, 9.1M Lb Zn, and 1.8M Lb Cu (1.6M Oz AgEq at a grade of 284 g/t AgEq). From its Veta Grande mine in Zacatecas, it processed 36,111 tonnes of 102 g/t Ag, recovering 45%, to produce 53.6K Oz Ag, 116 Oz Au, 620K Lb Pb, and 1.2M Lb Zn (193.7K Oz AgEq at a grade of 297 g/t AgEq). During the full year 2019, it processed 149.9K tonnes of 105 g/t Ag, recovering 47.1%, to produce 237.7K Oz Ag, 457 Oz Au, 2.4M Lb Pb, and 4.4M Lb Zn (761K Oz AgEq at a grade of 286 g/t AgEq). During Q4,2019 Santacruz processed from its Rosario mine in San Luis Potosi, 22,972 tonnes of 64 g/t Ag, recovering 90.6%, to produce 43.1K Oz Ag, 163 Oz Au, 195K Lb Pb, and 849K Lb Zn (134.5K Oz AgEq at a grade of 214 g/t AgEq). During the full year 2019, it processed 76,088 tonnes of 65 g/t Ag, recovering 93.4%, to produce 149.7K Oz Ag, 642.9K Lb Pb, and 3M Lb Zn (465.6K Oz AgEq at a grade of 218 g/t AgEq).
  • Telson Mining Corporation, resumed full scale mining and milling operation at its Campo Morado mine in Guerrero. The initial production after resuming operations is for 1,750 tonnes per day but intending to increase it to 2,000 tonnes per day or more in the coming weeks.
  • Mexus Gold US, crushed and placed additional material from Don Julio vein on the heap leaching pad of its Santa Elena mine in Sonora. The Julio and Lucky Strike open pit keep expanding with 1.2-9 g/t Au and an overall average of 4 g/t Au.
  • Endeavour Silver Corp., provided 2020 production and cost guidance for its Mexican mining operations. The table below shows figures for each of its three Au-Ag mines in Mexico:

Endeavour also announced that it plans to spend $5.4M drilling 18,500m of core on brownfield projects, greenfield exploration and development of its mines and projects.

ON FINANCING

  • Azure Minerals Limited, completed a $4M placement to conduct an aggressive exploration program on its Alacrán project in Sonora. Gross proceeds will be used to perform drilling to increase mineral resources at its Bonita deposit, conduct greenfield exploration and target definition at its Alacrán project, and to restart metallurgical testwork on its Mesa de Plata and Loma Bonita deposits. The company also mentioned that it received payments for MXP $ 16.5M from the Mexican Tax Office for the recovery of IVA (GST).
  • Millrock Resources Inc., announced its plan to raise gross proceeds from a non-brokered private placement for up to $1M (Batamote project, Sonora). Gross proceeds will be used to advance exploration on their current projects as well as to generate new ones.
  • Gold Resource Corporation, declared January 2020 monthly dividend of one-third of a cent per common share for its shareholders (Arista mine, Oaxaca).
  • Telson Mining Corporation, has been marketing a non-brokered private placement for gross proceeds for up to CAD $3M. It has completed subscription agreements for total proceeds of approximately CAD $1.89M and is planning to conduct a first tranche initial closing on proceeds ones the TSX approve it (Campo Morado mine, Guerrero).

ON RESOURCES AND DEVELOPMENT

  •  Azure Minerals Limited, announced results from the activities performed at its Alacran and Oposura project in Sonora in the period Q4, 2019. At Alacrán, the company commenced an RC infill and expansion drilling program at its Loma Bonita deposit which is open for expansion in several directions. The goal is to increase the current Au and Ag resources which count for 32.2M Oz Ag and 150K Oz Au. To date, 10 RC holes have been collared and the most significant drill intersects are in hole MDPD-025 with 0.56 g/t Au and 27 g/t Ag over 29.6m: hole MDPD-035 with 0.37 g/t Au and 8 g/t Ag over 12.6m; and hole ALA-17-004 with 0.47 g/t Au and 27 g/t Ag over 63.0m. The company also reported channel sampling results of a road cutting in Loma Bonita which returned 3.6 g/t Au over continuous 35.5m wide, and several high grades results from the sampling of historical mine dumps located 11.5-2km S and SE of the Cerro El Alacrán porphyry hosted Cu-Au-Mo ore body. 21 samples were collected with 10 samples returning > 1 Kg Ag (average of 1.07Kg Ag/t), 17 samples with >1 g/t Au (average of 4.43 g/t Au), 10 samples returning over 1% Cu (average of 0.95% Cu), 12 samples returning > 10% Pb (average of 14.9% Pb), and 10 samples returning  over 10% Zn(average of 9.3% Zn). At Oposura, Azure continued to trial, asses and advance several processing for producing saleable bulk concentrate of 35% Zn, 20% Pb, and 140 g/t Ag, as well as to produce separate high grade Zn and Pb concentrates. It also is considering off-take options for direct shipping ore and bulk concentrates.
  • Great Panther Mining Limited, announced 2019 exploration results and provided 2020 plans for its Mexican mining operations. At San Ignacio mine, Guanajuato, the company drilled 7,535 m in 30 in-fill holes. Most significant drill intersections were encountered in hole ESI19-253 with 2.84 g/t Au and 125 g/t Ag (352 g/t AgEq) over a true width of 1.15m; hole ESI19-254 with 5.78 g/t Au and 6 g/t Ag (469 g/t AgEq) over a true width of 1.20m; hole ESI19-267 with 3.69 g/t Au and 191 g/t Ag (486 g/t AgEq) over a true width of 1.09m; hole ESI19-276 with 1.63 g/t Au and 292 g/t Ag (422 g/t AgEq) over a true width of 1.38m; and hole ESI19-277 with 20.53 g/t Au and 816 g/t Ag (2,458 g/t AgEq) over a true width of 0.59m. 2020 plans for San Ignacio will comprise up to 8,500m of in-fill drilling as well as to test additional exploration targets. An update of the mineral resource estimate will be presented in Q1, 2020. At its Guanajuato mine, the company took the decision to put on hold the production in 2019 in order to focus on finding higher grade resources. Great Panther drilled 126 in-fill holes for a total of 8,832 m., mainly underground. Additionally, the company geologists have re-mapped and sampled most accessible areas to develop multiple targets. Significant drill intersection were encountered in hole UGPM19-017 with 1.3 g/t Au and 364 g/t Ag (468 g/t AgEq) over a true width of 3.52m; hole UGPM19-020 with 3.93 g/t Au and 77 g/t Ag (398 g/t AgEq) over a true width of 5.63m: hole UGP-028 with 2.58 g/t Au and 1,042 g/t Ag (1,249 g/t AgEq) over a true width of 2.51m; hole UGDP19-002 with 3.16 g/t Au and 457 g/t Ag (710 g/t AgEq) over a true width of 5.89m; hole UGDP19-013 with 4.32 g/t Au and 863 g/t Ag (1,209 g/t AgEq) over a true width of 4.96m; hole SP19-003 with 3.97 g/t Au and 1,436 g/t Ag (1,754 g/t AgEq) over a true width of 3.53m; and hole UGV19-010 with 2.45 g/t Au and 472 g/t Ag (668 g/t AgEq) over a true width of 2.30m. The 2020 in-fill drilling program will consists of 14,400m focused on building mineral resources along the Veta Madre structure. An update of the Guanajuato mineral resource estimate will be released in Q1, 2020. At its Topia mine in Durango, the company drilled 25 in-fill holes for a total of 5,344 m to build mineral resources. Significant drill intersections were encountered in hole ST19-238 with 0.28 g/t Au, 5,507 g/t Ag, 25.2% Pb, and 6% Zn (6,966 g/t AgEq) over a true width of 0.31m; hole ST19-246 with 0.31 g/t Au, 2,768 g/t Ag, 5.2% Pb, and 1.6% Zn (3,112 g/t AgEq) over a true width of 0.33m; hole ST19-249 with 0.2 g/t Au, 4,840 g/t Ag, 26.8% Pb, and 9.9% Zn (6,582 g/t AgEq) over a true width of 0.1m; and hole ST19-251 with 0.25 g/t Au, 2,099 g/t Ag, 14.2% Pb, and 12% Zn (3,411 g/t AgEq) over a true width 0.17m. The 2020 drilling program will consists of 2,500m focus on building mineral resources. Great Panther plans to release an updated mineral resource estimate in July, 2020.
  • Minera Alamos Inc., entered into a purchase agreement with Mako Mining Corp, Marlin Gold Mining Ltd., and Oro Gold de México S.A. de C.V., to acquire a complete crushing, screening, and agglomeration system to facilitate future production growth at its Santana mine in Sonora.
  • Endeavour Silver Corp., updated 2019 mineral reserve and resource estimate for its three Au-Ag Mexican mines. Mineral reserves at December 31, 2019 are shown in the below table:

Mineral resources at December 31, 2019 are shown in the below tables:

Mineral resources are exclusive of and in addition to mineral reserves.

 ON DEALS AND CORPORATE ISSUES

  • Bacanora Lithium plc, announced results from its annual general meeting of shareholders (Bacanora project, Sonora).
  • Plata Latina Minerals Corporation, entered into an agreement of assignment of mining concessions of its three Mexican properties with The Electrum Group. The three mining properties are Vaquerias, in Jalisco State which consists of two mining concessions totaling 4,411 Ha; Palo Alto, in Aguascalientes State, which comprises three mining concessions totaling 4,722 Ha; and La Joya, in Hidalgo State, which consists of one mining concession of 924 Ha. Electrum will pay USD $100K for each property, and will have exclusive rights for a period of four months to evaluate the three properties, commencing on January 20, 2020 and ending on May 20, 2020. Electrum has agreed to reimburse Plata Latina the remaining 2019 semi-semester mining duties on the three properties up to a maximum amount of USD $50K. It also will pay mining duties to cover the mining duties of the first semester 2020. Electrum has already commenced their due diligence on the properties, and will have the right to exercise its option to acquire any or all of the three properties.
  • Minaurum Gold Inc., signed a five-years option agreement to acquire 100% of the Aurifero Gold project in Sonora and expanding its land control in the Alamos mining district where its Alamos Silver project is located. “Aurifero contains a swarm of Au &-Ag-bearing epithermal veins within a NW/SE-trending zone measuring 3 km long and more than 400 m wide. Satellite imagery and ground reconnaissance geology indicate that the alteration signature is similarly widespread”. Several campaigns of shallow RC and core drilling have been conducted since the 1980s totaling over 8,000 metres, all of them averaging less than 100 m deep; the deepest reaching a vertical depth of 135 m from surface.  “There are currently a number of operators conducting small-scale mining on the project.  Under the option agreement, the miners are restricted to a maximum mining depth of 100 m”. Significant drill intercepts from historic drilling were encountered in hole DMDDH-01 with 18.37 g/t Au over 3.1m; hole 07-MN-10, with 3.12 g/t Au over 24.5m; hole CI-35 with 1.47 g/t Au over 48m; hole CI-09 with 3.65 g/t Au over 58m; and hole CI-34 with 2.42 g/t Au over 24m. The option agreement signed by Minaurum is in exchange for USD $2.7M for the 100% of a block of mining concessions which cover 1,198 Ha. The option does not include royalty.
  • Mexican Gold Corp., entered into a binding letter agreement to complete business combination with New Found Gold Corp. The resulting company will be very well capitalized and be focused on exploring and conduct multiple drilling campaigns on their properties and advance Las Minas project in Veracruz. Under the terms of the agreement, New Found is required to complete a minimum of CAD $10Mfinancing, and post-transaction, the company will have approximately CAD $19M in working capital.
  • Equinox Gold Corp., and Leagold Mining Corporation, shareholders approved merger to create a premier Americas Au producer. On closing of the transaction, Leagold will receive 0.331 of an Equinox Gold share for each Leagold share held. Current Equinox Gold and Leagold shareholders will own approximately 55% and 45% respectively of the merged company. Transaction is expected to close in February 2020, subject to approval of TSX and NYSE (Los Filos mine, Guerrero).
  • Minera Alamos Inc., entered into a purchase agreement with Mako Mining Corp, Marlin Gold Mining Ltd., and Oro Gold de México S.A. de C.V., to acquire a complete crushing, screening, and agglomeration system to facilitate future production growth at its Santana mine in Sonora. The purchase price of this agreement is for CAD $1.2M in staged payments. CAD $300K upon execution of the agreement, CAD $700K on the closing date (April 30, 2020 or such other date on or before September 30, 2020), and CAD $200K on the earlier date of the shipment of the equipment.
  • Mithril Resources Ltd., announced results from its 2019 activities, which consisted mostly on the Sun Minerals Pty Ltd acquisition and the exclusive option to acquire 100% interest in the Copalquin project in Durango. Due diligence has been completed and Mithril expects to complete the acquisition of Sun Minerals for the March 2020 quarter.
  • Fortuna Silver Mines Inc., provided an update on the status of a dispute royalty of 3% that a former owner of one of its extracting concessions in its San Jose mine in Oaxaca granted to the Mexican Geological Service (SGM). In 2018, the company, supported by legal opinions of three independent law firms, concluded that none royalty should be paid and commenced administrative and legal proceedings against the General Direction of Mines (GDM) in order to remove reference to the royalty on the title register. “Fortuna Silver has recently received notice from the GDM seeking to cancel the mining concession if the royalty, in the Mexican pesos equivalent of US$30 million plus VAT (being the amount of the claimed royalty from 2011 to 2019), is not paid before March 15, 2020. The company will be initiating legal proceedings to contest the cancellation procedure and also to stay the cancellation process. In the event that the company is unsuccessful in cancelling the action taken by the GDM or in obtaining a stay of execution, it may be required to pay, or post a bond or other security, up to the amount claimed, in order to preserve the mining concession. In that case the company would immediately thereafter proceed with dispute proceedings. If the company is required to pay the royalty or post security it will do so from available working capital”.

 ON SOCIAL RESPONSIBILITY

  • The Mexican President, Luis Manuel López Obrador (AMLO) thanked Peñoles, for joining the program “Youth Building the Future”, which guarantee the right to young people to study , work and be trained as good citizens. AMLO, along with the General Director of Peñoles, the Governor of Coahuila, and the Secretary of Labor gathered in Laguna Del Rey, Coahuila with 61 scholars in the frame of the celebration of the first anniversary of this program. Scholars thanked the support and the opportunity to receive training and after which they hope to get a job in Peñoles. Fernando Alaniz, General Director of Peñoles commented that this program is not only seen in the financial result sheet but also in the responsibility and commitment towards the community.
  • Governor of Sonora, Claudia Pavlovich Arellano, opened the Community House of Argonaut Gold Inc in la Colorada, where it will offer arts, music, drawing, painting, handicraft and confectionery workshops, as well as workshops of values, school for parents, addiction prevention and emotion management, all totally free for the population.
  • The municipality of Guadalupe y Calvo Chihuahua, Chihuahua and Fresnillo plc (San Julian mining company), signed a labour agreement to hire local personnel to work at the mine, based on their knowledge and qualifications. Local authorities commented that this is already a second stage of hiring, being 45 people placed in the previous one, so it is expected to place a good number of elements in this new stage.
  • Fresnillo plc, demonstrates Social Responsibility since it works on four strategic axes including education, health, capacity development, and environmental care. It has sustainability as its policy, as it is a company dedicated to the exploration, exploitation and benefit of minerals, and is committed to guaranteeing a safe and healthy place for its staff and its environment, establishing good relations with neighboring communities. In Education, 36 young people who study robotics have received support and advice, and approximately 2,600 children are being beneficiated with a program that foster the reading culture. In Health, more than 3,000 people from several communities were attended in 2019 without any cost. This social program will continue in 2020. In Capacity Development, in sports, Fresnillo has organized since 9 years ago, the 5Km race which started with 200 runners and now participate more than 2,000; it has a soccer academy, and a year ago, an agreement was signed with a professional soccer team (Santos Laguna) to grant 300 children and young people to be in the academy. The company also support in other sports such as baseball, basketball, etc.  In addition, more than 200 women from different communities are trained, who are taught courses in crafts, pastry, beauty culture, and sewing and are given the material. In addition, more than 40 people who have small businesses are trained. In Environment, Fresnillo plc takes care of the water and operates two waste water treatment plants. It also has two tree nurseries that give the year more than 70,000 trees of which a large part of them are planted in all the mines and others are donated to the community.
  • Grupo Mexico, delivered Seed Capital to inhabitants of Nueva Rosita, Coahuila, to learn a trade and improve the quality of life of people. Seed Capital is an initial financing method that aims to develop a business idea with growth possibilities and is delivered in kind. The company is providing seeds in projects that seek the growth of the communities where it has mining operations. Grupo Mexico also presented a large urban development project for San Luis Potosi. This project will generate 20,000 jobs and build 7,500 houses in an area of 470 Ha. It was also announced that the urbanization of the site where Industrial Minera Mexico operated will be a new development hub for 30,000 people and will have wind power road electricity supply and also includes the reforestation of 20,000 trees in the area. It will have shopping centers, universities, research centers and hospitals. This is the most ambitious urban project for San Luis Potosi in recent years and will start in this same 2020.
  • Minera Media Luna (Torex Gold), supported Nuevo Balsas and surrounding communities nearby its Mexican mining operations in Guerrero with high-tech medical equipment delivered to the NGO “Curando Mexico”.   This social program “Curando México” aims to offer the most vulnerable population an accessible high quality health service.
  • Minera Peñasquito (Newmont Goldcorp), invested MXP $9M and delivered tractors and agricultural equipment to the inhabitants of the El Vergel Ejido, located in the municipality of Mazapil, Zacatecas. This project began three years ago, however, with the delivery of seven tractors and agricultural equipment, such as threshing machines and harvesters, among others, a new stage will begin in the cultivation fields of the region. Other actions that were carried out were preparing farmland, operating wells, technifying the irrigation system, as well as providing the inhabitants of El Vergel with seeds to cultivate.
  • Newmont Goldcorp, was recognized for its high social, environmental and corporate governance performance, which places it as a leader in the mining sector worldwide. Newmont was recognized by 3 independent entities for their high managerial performance, social responsibility, and coordinated actions to combat climate change and the promotion of women in the workplace. Newmont scored high in a variety of dimensions, including quality management, social responsibility, long-term investment, personnel management and innovation.

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, sulphur crystals in an epithermal hot spring prospect in Guanajuato, Mexico.  Photo by Miguel A Heredia.