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

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Breccia cemented by tourmaline

By Miguel A Heredia During the 32nd week of the year (August 07th to August 13th, 2023), at least 24 press releases were announced by companies working in Mexico, and 3 news published by the media, with twelve five communicating production and financial results, four commenting on Mexican issues, four disclosing deals and corporate issues, four announcing financing issues, two reporting resources and development of their properties,, and one informing on exploration results. ON MEXICO ISSUES, The union leader Carlos Pavón Campos achieved a milestone by obtaining an injunction against the limit on the payment of utilities in the mining sector. The economic impact of the Peñasquito, the largest gold mine in Mexico due to the stoppage of activities is over USD $220M. Heliostar and Coeur Mining reported the best drilling intercepts in Mexico on the second week of August, 2023. ON EXPLORATION, In Chihuahua, Kingsmen released results from 21 surface samples collected on the southeast portion of its Las Coloradas project. ON MINING, Aura Minerals reported Q2, 2023 production and financial results and provided 2023 production guidance (Aranzazu Mine, Zacatecas). Avino reported Q2, 2023 production and financial results from its Avino mine in Durango. Endeavour reported Q2, 2023 production and financial results from their Mexican mine operations. Gatos Silver reported Q2, 2023 financial results from its Cerro Los Gatos mine in Chihuahua, where it owns 70% interest. GoGold announced Q2, 2023 financial results (Parral Tailings project, Chihuahua). Golden Minerals reported Q2, 2023 financial results. Argonaut reported Q2, 2023 production and financial results from their Mexican mine operations. Starcore reported Q1, 2023 production results from its San Martin Mine in Queretaro. SilverCrest reported Q2, 2023 production and financial results from its Las Chispas mine in Sonora. Santacruz Mining reported Q2, 2023 production results from its Zimapan Mine in Hidalgo. Fortuna reported Q2, 2023 production and financial results from its San Jose Mine in Oaxaca.  ON FINANCING, SilverCrest announced that it filed and received acceptance from the Toronto Stock Exchange (TSX) for a notice of intention to make a normal course issuer bid (Las Chispas Mine, Sonora).  GR Silver closed the first tranche of a non-brokered private placement for gross proceeds of $329,875 (Plomosas project, Sinaloa).  DynaResource announced that it has entered into a stock purchase agreement with Ocean Partners, under which the company issued 1M shares of common stock to Ocean Partners in exchange for USD $5M (San Jose de Gracia property, Sinaloa). Galore announced that it has entered into a loan agreement with a dedicated arm’s length shareholder of Galore (Dos Santos project, Zacatecas). ON RESOURCES AND DEVELOPMENT, Heliostar reported results from four holes drilled at its Ana Paula project in Guerrero. Coeur provided an update on the exploration program at its Palmarejo project in Chihuahua.  ON DEALS AND CORPORATE ISSUES, US Antimony announced that a live webcast of a new company investor presentation will be given by Chairman of the Board (Los Juarez project, Qro). Argonaut appointed a new member to its Board of Directors (San Agustin Mine, Durango). Capitan Silver Corp., announced results from its annual and special meeting of shareholders (Cruz de Plata project, Durango). Santacruz announced management changes (Zimapan Mine, Hidalgo). ON SOCIAL RESPONSIBILITY, no relevant news. ON MEXICO ISSUE

  • The union leader Carlos Pavón Campos achieved a milestone by obtaining an injunction against the limit on the payment of utilities in the mining sector. “As part of the payment of utilities for 2022, we should have received around MXP $900M, and only MXP $300M were distributed, where were MXP $600M left, if the Constitution indicates that 10% must be paid of the profits that the companies obtained?”, expressed Carlos Pavón Campos. In an interview, Pavón Campos expressed that this “amparo” could set a precedent, since it is the way for all the workers who were affected in the payment of utilities to receive what corresponds to them, and not the three months of salary or the average of the last three years as established by the Federal Labor Law.
  • The economic impact of the Peñasquito, the largest gold mine owned by Newmont in Mexico due to the stoppage of activities is over USD $220M. Experts are concerned about the repercussions that the conflict will have for the company, the industry and for metal production, and also for the lack of dialogue between the company and the workers of the National Mining Union. The strike began on June 7 after more than 2,000 workers from Section 304 of the National Mining Union accused the company of violating the collective labor contract, of failing to comply with the Federal Labor Law, the T-MEC and the conventions of the International Labor Organization, but also omitting the full payment of profits to the workers. Newmont announced that is willing to negotiate with the Mining Union to lift the strike in Peñasquito. The gold mining company also denied having threatened the workers who are on strike, as denounced by section 34 of the National Mining Union. The gold-producing company assured that they have maintained constant communication with unionized and non-unionized workers to let them know the status of the negotiations they have had with the Union representatives. Finally, the company reiterated that it has complied in time and form with the payment of the PTU corresponding to fiscal year 2022 according to the audited financial statements.
  • Heliostar Metals Ltd., and Coeur Mining Inc., reported the best drilling intercepts in Mexico on the second week of August, 2023. Details are shown in the table below:

ON EXPLORATION

  • Kingsmen Resources Ltd., released results from 21 surface samples collected along the Soledad and Soledad II structures, on the southeast portion of its Las Coloradas project in Chihuahua. Four samples returned >300 g/t Ag; two returned > 200 g/t Ag; and one returned > 100 g/t Ag. The company reported that prospecting and sampling will continue on the property. Las Coloradas is located in the Parral mining district of the Central Mexican Silver Belt.

ON MINING

  • Aura Minerals Inc., reported Q2, 2023 production and financial results and provided a 2023 production guidance for its Aranzazu Mine in Zacatecas (currency is reported in US dollars). The company produced during the second quarter of the year 25,192 Gold Equivalent Ounces (GEO). It also provided an updated 2023 production guidance. Aura plans to produce between 104K-112K GEO at cash and AISC of $783-842 and $1,025-1,101 per GEO sold respectively, considering actual current prices, between 105K-114K GEO at cash and AISC of $710-769 and $936-1,012 per GEO sold respectively, considering actual constant prices, and between 101K-116K GEO at cash and AISC of $685-$788 and $898,1,033 per GEO sold respectively, considering previous current prices. For constant metal prices in the previous guidance, the company considered a Cu price of $3.60/Lb, a Au price of $1,740/Oz, and a Ag price of $22.50/Oz, while for current prices it considered a Cu price of $3.90/Lb, Au price of $1,925/ Oz, and a Ag price of $23.20/Oz.
  • Avino Silver & Gold Mines Ltd., reported Q2, 2023 production and financial results from its Avino mine in Durango (currency is reported in US dollars). The company milled 157,371 tonnes to produce 232.4K Oz Ag, 1,520 Oz Au, and 1.44M Lb Cu (587.3K Oz AgEq) at cash and AISC of $16.33 and  $23.06 per AgEq payable Oz sold. The company reported revenues of $9.2M; mine operating income of $1M; net of none-cash costs of sales of $1.8M; net income of $1.1M or $0.01 per share; EBIDTA of $0.4M; adjusted earnings of $27K; and cash flow from operations of $503K. Avino also reported cash as per June 30, 2023 of $1.2M and a working capital of $4.6M.
  • Endeavour Silver Corp., reported Q2, 2023 production and financial results from their Mexican mine operations (currency is reported in US dollars). The company produced 1.49M Oz Ag and 9,819 Oz Au (2.3M Oz AgEq) at a cash and AISC of $13.52 and $22.15 per Oz payable silver respectively. Endeavour reported revenue of $50M from the sale of 1.3M Oz Ag and 9,883 Oz Au at average realized price of $24.13 per Oz Ag and $1,967 per Oz Au; a cash flow of $11.1M in operating cash flow before working capital changes and $18.8M in mine operating cash flow before taxes; a net loss of $1.1M or $0.01 per share; an adjusted earnings of $2.1M after adjusting for a $3.2M change in the fair value of investments; and a cash position of $43.5M and working capital of $78.2M.
  • Gatos Silver Inc., reported Q2, 2023 financial results from its Cerro Los Gatos mine in Chihuahua, where it owns 70% interest (currency is reported in US dollars). The company milled 265,342 tonnes of 265 g/t Ag, 4% Zn, 1.85% Pb, and 0.26 g/t Au to produce 2M Oz Ag, 14.8M Lb Zn, 9.7M Lb Pb, and 1,200 Oz Au (3.3M Oz AgEq) at co-product and by-product cash cost of $12.72 and $7.10 per Oz of payable AgEq respectively, and co-product and by-product AISC of $17.55 and $14.32 per Oz of payable AgEq respectively.  Los Gatos reported (100% basis) revenue of $58.3M; a cost of sales of $25.8M; a cash flow from operations of $34.3M, a net income of $0.7M; a sustaining capital of $13.1M; an EBITDA of $27.5M,  a free cash flow of $19.7M; and a net loss of $3.6M or $0.05 per share.
  • GoGold Resources Inc., announced Q2, 2023 financial results (currency is reported in US dollars) from its Parral Tailings project in Chihuahua. GoGold produced 203,894 Oz Ag, 1,512 Oz Au and 302,400 Lb Cu (375,112 Oz AgEq). The company reported revenue of $8.5M on the sale of 360K Oz AgEq at a realized per Oz Ag of $21.29 at adjusted cash and AISC of  $15.54 and $20.85 respectively per Oz AgEq; a cash of $98.7M; a net income of $2.6M including interest income of $1.5M.
  • Golden Minerals Company reported its Q2, 2023 financial results (all figures are in US dollars). The company produced at its Rodeo mine in Durango, 1,828 Oz Au and 7,742 Oz Ag at average realized prices of $1,976 per Oz Au and $24.34 per Oz Ag. Golden reported revenue of $5M which includes Rodeo´s sale of metals, sales of Velardeña concentrates, and sales of Rodeo slag material; a net operating margin of $1.1M; cash and equivalents balance as of June 30, 2023 of $3.4M; zero debt and a net loss of $1.5M or $0.21 per share. At June 30, 2023 the company reported current assets of $8.6M including cash and cash equivalents of approximately $3.4M, and account payable and other current liabilities of $5.4M.
  • Argonaut Gold Inc., reported Q2, 2023 production and financial results from their Mexican mine operations (all dollar amounts are expressed in US dollars). At La Colorada Mine, Sonora, Argonaut reported that it sold 5,680 Oz Au; a cost of sales of $8.1M; a cost of sales per Oz Au of $1,425; a cash cost of $6M, and a cash and AISC of $1,059 and $1,217 per Oz Au sold respectively. At San Agustin Mine, Durango, the company sold 12,774 Oz Au; a cost of sales of $21.9M; a cost of sales per Oz Au of $1,717; a cash cost of $17.7M, and a cash and AISC of $1,386 and $1,474 per Oz Au sold respectively. On August 4, 2023, the company signed an agreement to acquire the necessary land to complete mining of the current reserve base at the San Agustin Mine. Subject to receipt of the necessary permit, expected later this year, mining is expected to continue into 2025. At El Castillo Mine, Durango, Argonaut sold 5,502 Oz Au; a cost of sales of $8.54M; a cost of sales per Oz Au of $1,553; a cash cost of $7.44M, and a cash and AISC of $1,353 per Oz Au sold.
  • Starcore International Mines Ltd., reported Q1, 2023 production results from its San Martin Mine in Queretaro. The company milled 57,700 tonnes of 1.13 g/t Au and 14 g/t Ag (1.92 g/t AuEq) at metallurgical recoveries of 83.99% and 45.82% respectively, to produce 1,918 Oz AuEq.
  • SilverCrest Metals Inc., reported Q2, 2023 production and financial results from its Las Chispas mine in Sonora (all amounts are presented in US dollars).  SilverCrest mined 74,400 tonnes and milled 107,900 tonnes of 4.84 g/t Au and 449 g/t Ag with metallurgical recoveries of 96.4% and 97.9% respectively, to recover 16,550 Oz Au and 1.53 M Oz Ag. The company sold a total of 13,400 Oz Au and 1.45M Oz Ag at average realized prices of $1,991 per Oz Au, and $24.36 per Oz Ag. SilverCrest reported revenue of $62M; a cost of sales of $23.7M resulting in mine operating income of $38.3M; an income of $23.7M or $0.16 per share, inclusive of an $8.6M ($0.06 per share) unrealized foreign currency loss; an increased cash balance by $7.6M and bullion holdings by $3.6M during the quarter, after, sustaining capital at Las Chispas of $10.1M and retiring $25M of debt; cash flow from operating activities before changes in non-cash working capital items of $47.5M or $0.32 per share; and cash costs of $7.39 per Oz AgEq sold and all-in sustaining cost (AISC) of $12.70 per Oz AgEq sold based on accelerated spend towards exploration and for sustaining capital to create operational flexibility. The company ended the quarter debt free with treasury assets totaling $59M (cash of $53.4M and gold and silver bullion of $5.6M). Access to an undrawn $70M revolving credit facility remains.  In addition, the company provided production guidance for H2, 2023, it expects to produce 4.8 to 5.2M Oz AgEq at cash and AISC of $7-8.50 and $13.75-15.50 per Oz AgEq sold respectively. For the full 2023 year the SilverCrest expects to produce 9.8-10.2 M Oz AgEq at cash and AISC of $7.50-8.50 and $12.75-13.75 per Oz AgEq respectively.
  • Santacruz Silver Mining Ltd., reported Q2, 2023 production results from its Zimapan Mine in Hidalgo. The company processed 171,668 tonnes of 69 g/t Ag, 0.67% Pb, 2.25% Zn, and 0.33% Cu with metallurgical recoveries of 71%,74$,71%, and 53% respectively to produce 271.1K Oz Ag, 1.9M Lb Pb, 6.14M Lb Zn, and 665.3K Lb Cu (878.8K Oz AgEq).
  • Fortuna Silver Mines Inc., reported Q2, 2023 production and financial results from its San Jose Mine in Oaxaca (all amounts are expressed in US dollars). The company milled 194,887 tonnes of 168 g/t Ag and 1.02 g/t Au at metallurgical recoveries of 91% and 90% respectively, to produce 957.3K Oz Ag and 5,778 Oz Au. Fortuna sold 942.7K Oz Ag and 5,695 Oz Au at realized prices of $24.09/Oz Ag and $1,973/Oz Au.  The company reported a cash cost of $102.77/tonne and a cash and AISC of $15.93 and $24.07 per Oz AgEq respectively. It also reported sustaining expenditures of $3.6M; non-sustaining expenditures of $524K; and brownfield expenditures of $788K.

ON FINANCING

  • SilverCrest Metals Inc., announced that it filed and received acceptance from the Toronto Stock Exchange (TSX) for a notice of intention to make a normal course issuer bid pursuant to TSX requirements permitting the company to purchase up to 7,361,563 common shares of the company, representing approximately 5% of SilverCrest’s total issued and outstanding common shares. As of August 9, 2023 SilverCrest had 147,231,264 issued and outstanding common shares (Las Chispas Mine, Sonora).
  • GR Silver Mining Ltd., closed the first tranche of a non-brokered private placement. The company issued 6,597,500 units for gross proceeds of $329,875. GR Silver paid $8,100 and issued a total of 162,000 warrants as finder´s fees. Each finder’s warrant is exercisable for one common share at a price of $0.08 for two years (Plomosas project, Sinaloa).
  • DynaResource Inc. announced that it has entered into a stock purchase agreement with Ocean Partners UK Limited, under which the company issued 1M shares of common stock to Ocean Partners in exchange for USD $5M. Ocean Partners, through its 100% owned subsidiary in Mexico – MK Metals Trading (MK), and Dyna Mexico have formalized the extension of their commercial offtake agreement through December 31, 2026, and with revision of the next terms: OP / MK agreed to Increase the Advance Credit Line available to Dyna Mexico to USD $17.5M; OP / MK agreed to provide an Option to convert the Advance Credit Line into a Revolving Credit Line, repayable in 12 months, in maximum amount of USD $10M. The Company and Dyna Mexico plan to utilize the funds received from Ocean Partners to further expand and increase test mining and milling activities at San Jose de Gracia project in Sinaloa (SJG), to continue exploration drilling and related exploration activities at SJG, and for general corporate purposes.
  • Galore Resources Inc., announced that it has entered into a loan agreement with a dedicated arm’s length shareholder of Galore. The lender has provided the company with a cash loan of USD $20K.  The Loan shall bear an interest rate of 9% per annum compounded quarterly, due for repayment on August 3, 2024.  The funds will be used for obtaining assay results from the company’s most recent drill program at its Los Gemelos property within its Dos Santos project, Zacatecas.

ON RESOURCES AND DEVELOPMENT

  • Heliostar Metals Ltd., reported results from four holes drilled at its Ana Paula project in Guerrero. Drilling highlights include hole AP-23-300 with 32.1 g/t Au over 2.7m, plus 7.96 g/t Au over 72m, including 31.8 g/t Au over 9.5m; hole AP-23-302 with 5.01 g/t Au over 51.8m, including 11.6 g/t Au over 4.72m, plus 2.63 g/t Au over 17.6m, including 21.4 g/t Au over 1.36m; and hole AP-23-299 with 6.95 g/t Au over 38m, including 15.8 g/t Au over 11m, including 23.3 g/t Au over 6m. These four holes continue to assess mineralization up- plunge of the High Grade Panel at the core of Ana Paula.
  • Coeur Mining Inc., provided an update on the exploration program at its Palmarejo project in Chihuahua. Drilling at Hidalgo encountered the highest gold grades ever at Palmarejo and extended high-grade mineralization along strike to the NW in the direction of the Palmarejo processing facilities. Hidalgo comprises three individual veins: Hidalgo, San Juan, and Libertad. Drilling highlights at Hidalgo Vein include holes HGDH_118 with 15.1m of 2.8 g/t Au and 265 g/t Ag; hole HGDH_127 with 10.6m of 3.4 g/t Au and 248 g/t Ag; hole HGDH_137 with 5.8m of 41.1 g/t Au and 496 g/t Ag; and hole HGDH_151 with 8.7m of 3.0 g/t Au and 142 g/t Ag.  Drilling highlights at San Juan include hole HGHD_145 with 5.6m of 3.1 g/t Au and 240 g/t Ag. Drilling highlights at Libertad include hole HGDH_149 with 7.5m of 3.0 g/t Au and 170 g/t Ag. Coeur also reported that the infill and expansion drilling program completed at La Nacion and Zapata Deposits has been successful. Notable results from the infill drilling program include holes LBDH_237 with 2.2m of 1.51 g/t Au and 177 g/t Ag); Hole LBDH_239  with 3.3m of 1.71 g/t Au and 514 g/t Ag; hole DC3-ZPA-0018 with 3.8m of 8.1 g/t Au and 685 g/t Ag; hole DC3-ZPA-0042 with 5.7m of 2.02 g/t Au and 131 g/t Ag; and hole DC3-ZPA-0048 with 7.4m at 1.98 g/t Au and 86 g/t Ag, plus 2.2m grading 4.16 g/t Au and 307 g/t Ag)

ON DEALS AND CORPORATE ISSUES

  • US Antimony Corporation announced that a live webcast of a new company investor presentation will be given by Chairman of the Board (Los Juarez project, Qro).
  • Argonaut Gold Inc., appointed a new member to its Board of Directors, effective August 10, 2023 (San Agustin Mine, Durango).
  • Capitan Silver Corp., announced results from its annual and special meeting of shareholders (Cruz de Plata project, Durango).
  • Santacruz Silver Mining Ltd., announced that Carlos Silva Ramos is stepping down from his role as CEO and Director due to personal reasons (Zimapan Mine, Hidalgo).

ON SOCIAL RESPONSIBILITY

  • No relevant news.

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

On the picture above, breccia cemented by tourmaline in a porphyry copper project in Chihuahua, Mexico.  Photo by Miguel A Heredia.

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

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By Miguel A Heredia

During the 24th week of the year (June 12th to June 18th, 2023), at least 23 press releases were announced by companies working in Mexico, and 1 news published by the media with nine disclosing deals and corporate issues, seven reporting resources and developments of their properties, three commenting on Mexican issues, two informing on exploration results, two announcing financing issues, and one discussing social issues. ON MEXICO ISSUES, United States asked Mexico to review a claim at a Grupo México mine in the center of the country for an alleged denial of labor rights. Newmont Corporation suspended operations at its Peñasquito mine, in Zacatecas, after the workers’ union announced the strike. Gold Resource, GR Silver and Heliostar reported the best drilling intercepts in Mexico on the third week of June, 2023. ON EXPLORATION, Prismo provided an updated on its exploration programs at Palos Verdes project in Sinaloa and Los Pavitos in Sonora. In Oaxaca, Vortex provided a comprehensive overview of the exploration work completed to date at its Zaachila project. ON MINING, No relevant news.  ON FINANCING, Goldgroup announced proposed settlement of a loan obtained from Accendo Banco S.A (Cerro Prieto, Sonora). Silver Valley announced financing-early warrant exercise incentive program intended to encourage the early exercise of up to 12,897,114 outstanding warrants of the company (La Salada Salar, Zacatecas). ON RESOURCES AND DEVELOPMENT, Heliostar reported results from four holes drilled within and above the High-Grade Panel at the core of its Ana Paula project in Guerrero. Colibri and its JV partner Tocvan announced positive results from its ongoing bulk sample testing at the Pilar project in Sonora. GR Silver announced results of two additional step-out holes drilled at its San Marcial project in Sinaloa.  Heliostar issued a press release to clarify certain of its previous disclosure regarding its Ana Paula project in Guerrero. Prime filed a technical report for its Los Reyes project in Sinaloa. ON DEALS AND CORPORATE ISSUES, Colibri announced that it has been informed by its JV partner Agnico Eagle that the Pitaya Gold project in Sonora has been sold to a third party. Silver Dollar reported that it has terminated the exclusivity period signed with Canasil due to general market conditions. Endeavour announced the appointment of its new Vice President, Operations (Guanacevi mine, Durango). Santacruz reported that it shares will resume trading on Friday June 16, 2023 on the TSX Venture Exchange (Zimapan mine, Hidalgo). Golden Minerals appointed its new Executive Vice President (Rodeo mine, Durango). SilverCrest reported results from its annual general meeting of shareholders (Las Chispas Mine, Sonora). Kootenay declared that now it owns 100% of Columba property in Chihuahua after completing the final property payment. Gold Resource announced the resignation of one of its independent Directors of the Board of Directors (Don David Mine, Oaxaca). ON SOCIAL RESPONSIBILITY, SilverCrest released its inaugural 2022 Environmental, Social, and Governance (ESG) Report (Las Chispas mine, Sonora).

ON MEXICO ISSUE

  • United States asked Mexico to review a claim at a Grupo México mine in the center of the country for an alleged denial of labor rights, within the framework of the North American trade agreement, T-MEC, the US Department of Labor. The San Martín mine in Zacatecas owned by Industrial Minera México SA de CV, a subsidiary of the Americas Mining Corp. branch of Grupo México, has a labor complaint issued by the United States government, for denying workers the right to syndical freedom. The petition alleges the violation of the United Steelworkers and the National Union of Mining, Metallurgical, Steel and Similar Workers of the Republic of Mexico (Los Mineros)’ rights as a holder of the collective bargaining agreement at the San Martín mine and the hiring of workers to replace striking workers in violation of the collective bargaining agreement and Mexican law. The US government investigation revealed evidence of violations of the Los Mineros’ collective bargaining rights that warranted a request for review under the USMCA.
  • Newmont Corporation suspended operations at its Peñasquito mine, in Zacatecas, after the workers’ union announced the strike. The reason for this conflict is a fight over a profit-sharing agreement, the miner said in a statement. Newmont added that at the end of May the company paid the workers the equivalent of 10 percent profits, in accordance with the Law. The Union notified the Company of a strike action demanding an increase in the uncapped profit sharing benefit provided for in the Collective Bargain Agreement (CBA) from 10 percent to 20 percent, representing a 100 percent increase. In response to the strike notice, Minera Peñasquito suspended operations in a safe and orderly manner. Essential activities related to safety, security and environmental monitoring and protection continue. This is the third labor dispute since Peñasquito was purchased by Newmont in 2019. Newmont remains willing to participate in conciliation meetings to reach a resolution in accordance with the CBA, and will continue to adhere to legal procedures, respecting the rights of all its employees, inviting the Union to engage in a constructive dialogue, and providing the authorities with all requested information.
  • Gold Resource Corporation, GR Silver Mining Ltd., and Heliostar Metals Ltd., reported the best drilling intercepts in Mexico on the third week of June, 2023. Details are shown in the table below:

ON EXPLORATION

  • Prismo Metals Inc., provided an updated on its exploration programs at Palos Verdes project in Sinaloa and Los Pavitos in Sonora. Highlights at Palos Verdes project in Sinaloa include an ongoing 2,500m drilling program; 5 holes have been completed for a total of 727m; samples from the three first holes have been submitted to the lab for analysis; and a rock chip sample from mapped veins returned an assay of 840 g/t AgEq (700 g/t Ag and1.68 g/t Au) over a sample width of 1m. Highlights at Los Pavitos project in Sonora include 295 meters of trenches constructed and sampled with assay results received for 96.7 meters; an interval of 0.44 g/t Au over 10m in trench ZSC9; high grade silver assays in surface sampling in northeast Santa Cruz area; and a 2,500m drill program to start by the end of June, 2023.
  • Vortex Metals Inc., provided a comprehensive overview of the exploration work completed to date at its Zaachila project in Oaxaca. “The company is advancing towards the submission of an Environmental Impact Assessment (EIA) to the Federal Environmental Office, The Secretariat of Environment and Natural Resources (SEMARNAT), therefore fulfilling the Mexican government’s requirements for proposed drill targets.  The company believes the EIA will be completed and submitted within the next 3 to 4 months, encompassing a refined definition of the drill targets at Zaachila. Following its successful submission, Vortex will focus on obtaining the drill program approval from the Mexican government”.

ON MINING

  • No relevant news.

ON FINANCING

  • Goldgroup Mining Inc., announced proposed settlement of a loan obtained from Accendo Banco S.A., Multiple Banking Institution in 2020.  In June 2020, the Company’s subsidiary, Minas de Oroco Resources, S.A. de C.V. completed a definitive loan facility agreement with Accendo in the amount of USD $3M at a rate of 12% per annum with a final repayment date of 36 months from the date of the first disbursement. “The company guaranteed the Accendo Loan on behalf of Minas de Oroco. The amount currently outstanding under the Accendo Loan is approximately USD $185M. The debt underlying the Accendo Loan has been acquired by Minera Cerro Esperanza S.A de C.V. (MER), a wholly owned subsidiary of Calu Opportunity Fund LP (Calu). Calu is a shareholder and investor in the Company having acquired 1,177,500 Common Shares and having loaned the Company USD $2.16M (the Calu Loan). The Company will be seeking shareholder approval for the conversion of the Calu Loan into Common Shares of the Company at the Shareholders Meeting, which approval shall exclude any votes cast by Calu. MER contacted the Company on April 26, 2023 seeking repayment of the Accendo Loan. As the assets of Minas de Oroco are currently the only operating assets of the Company, the seizure of these assets would effectively place the Company into insolvency unless another arrangement was made. Further to discussions with MER, the Company is proposing to enter into a Settlement Agreement and an Exploitation and Option to Purchase Agreement, subject to approval of minority shareholders at the Meeting, pursuant to which the Company will deliver the assets of Minas de Oroco to MER in full satisfaction of the Accendo Loan and the Company is provided the right to operate the assets of Minas de Oroco and to purchase the assets in the future” (Cerro Prieto mine, Sonora).
  • Silver Valley Metals Corp., announced financing-early warrant exercise incentive program intended to encourage the early exercise of up to 12,897,114 outstanding warrants of the company. The Eligible Warrants were issued by the Company pursuant to a private placement financing completed on January 3, 2023.  The Eligible Warrants are exercisable to acquire one common share of the Company at a price of $0.15 per share, with 9,297,114 Eligible Warrants expiring November 17, 2024 and 3,600,000 Eligible Warrants expiring January 3, 2025 (La Salada Salar, Zacatecas).

ON RESOURCES AND DEVELOPMENT

  • Heliostar Metals Ltd., reported results from four holes drilled within and above the High-Grade Panel at the core of its Ana Paula project in Guerrero. “This is the area of the deposit that Heliostar believes has the potential to increase grade significantly. This drill program will evaluate Ana Paula’s ability to host a high-margin, underground gold mine development opportunity”. Hole AP-23-293 encountered 6 g/t Au over 129.2m, including 13.4 g/t Au over 46m; hole AP-23-294 intersected 2.1 g/t Au over 67.2m, including 6.4 g/t Au over 13.95m; hole AP-23-295 encountered 2.6 g/t Au over 41.5m, including 4.9 g/t Au over 5.5m, plus 3.7 g/t Au over 8m; and hole AP-23-296 with 1.9 g/t Au over 26m, including 13.6 g/t Au over 2m.
  • Colibri Resource Corporation and its JV partner Tocvan Ventures Corp., announced positive results from its ongoing bulk sample testing at the Pilar project in Sonora. Preliminary results from the leaching process ongoing confirm that the process is actively recovering gold and silver; gold and silver is reported in initial testing of carbon filters; and solution samples assayed at two separate certified labs confirm grade.  Regarding the fine fraction samples (to be used for Gravity Recovery and Agitated Leach Test), the new samples range between 1.2 and 4.9 g/t Au, weighted mean of 2.1 g/t Au; the silver values range between 5 and 29 g/t Ag, weighted mean of 14.8 g/t Ag; leach study returned 95-99% recovery of gold, 73-79% recovery of silver; and metallic screen results show 12.4 to 14.1% of the gold is coarse (+140 mesh).
  • GR Silver Mining Ltd., announced results of two additional step-out holes drilled at its San Marcial project in Sinaloa. Hole SMS23-03 intersected 111 g/t Ag, 0.01 g/t Au, 0.1% Pb, and 0.1% Zn over 17.3m, including 640 g/t Ag, and 0.03 g/t Au over 1.7m, plus 132 g/t Ag, 0.02 g/t Au, and 0.1% Zn over 6.3m, plus  134 g/t Ag, 0.11 g/t Au, 0.1% Pb, and 0.4% Zn over 35.3m. Hole SMS23-04 encountered 32 g/t Ag, 0.03 g/t Au, 0.1% Pb, and 0.1% Zn over 15m. “The wide silver intervals intersected in holes SMS23-03 and SMS23-04 continue to support the potential for extension of the wide mineralization geometry along strike. The drilling program, with two additional drill holes (for a total of six), aims to extend the footprint of the SE Area Discovery Zone for an additional 450 m along strike to the southeast, outside the Mineral Resource”.
  • Heliostar Metals Ltd., issued a press release to clarify certain of its previous disclosure regarding its Ana Paula project in Guerrero. The Company previously disclosed statements which could constitute an economic analysis of its intended re-scoping of the Ana Paula Project. The Company wishes to retract the Disclosure. The Company has not completed an economic analysis on the re-scoping of the Ana Paula Project and the Disclosure is not supported by a technical report in compliance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects. The Company advises readers not to rely on the Disclosure.
  • Prime Mining Corp., filed a technical report for its Los Reyes project in Sinaloa, for the updated mineral resource estimate (MRE) reported on May 2, 2023.  The addition of 100,000m of Prime drilling has doubled the current MRE compared to the April 2020 resource.  The table below shows the updated open pit 2023 MRE:

The MRE has a high-grade open pit mill resource and a lower grade heap leach portion.  The MRE includes drilling completed before December 31, 2022 from only the three main zones at Los Reyes: Guadalupe, Z-T and Central. This MRE does not include positive results from: Mariposa, Las Primas and Fresnillo. With ongoing drilling success, the Company believes there is significant potential to expand the MRE.

ON DEALS AND CORPORATE ISSUES

  • Colibri Resource Corporation announced that it has been informed by its JV partner Agnico Eagle Mining that the Pitaya Gold project in Sonora has been sold to a third party. In 2019, Colibri signed an agreement with Agnico to sell its 23% interest to Agnico or another buyer for a minimum of USD $500K. In 2020, Colibri was advanced USD $300K from Agnico which was secured by Colibri´s ownership of the JV company. Colibri will receive USD $500K from the sale less the outstanding loan principal and interest owed.
  • Silver Dollar Resources Inc., reported that it has terminated the exclusivity period signed with Canasil Resources Inc., due to general market conditions. “The purpose of the Exclusivity Agreement was to give Silver Dollar the opportunity to review Canasil’s assets and consider a corporate merger. Termination of the exclusivity period does not affect the separate Option Agreement between the parties, whereby Silver Dollar can earn a 100% interest in Canasil’s Nora silver-gold property”. Pursuant to the agreements, Canasil now has 60 days to repay the $200K non-interest-bearing loan Silver Dollar provided in return for the exclusivity period and the Nora Option.
  • Endeavour Silver Corp., announced the appointment of its new Vice President, Operations, to oversee the Company´s underground mining operations in Mexico (Guanacevi mine, Durango; Bolañitos mine, Guanajuato).
  • Santacruz Silver Mining Ltd., reported that it shares will resume trading on Friday June 16, 2023 on the TSX Venture Exchange, following the cease trade order being lifted by the British Columbia Securities Commission and the Ontario Securities Commission on Friday June 9, 2023 (Zimapan mine, Hidalgo).
  • Golden Minerals Company appointed its new Executive Vice President Pablo Castaños, who will be joining the company on July 1, 2023 (Rodeo mine, Durango).
  • SilverCrest Metals Inc., reported results from its annual general meeting of shareholders. The company also announced that independent consultants are continuing to advance the Updated Technical Report. This work is progressing well, with the results from this study now expected to be released in July 2023 (Las Chispas Mine, Sonora).
  • Kootenay Silver Inc., declared that now it owns 100% of Columba property in Chihuahua after completing the final property payment. The final payment of USD $215K was made and paid in cash on May 12, 2023. The company has paid a total of USD $3.29M in staged payments (of which USD $215K was paid in common shares of the Company, commencing November 2018 to earn 100% ownership. The vendor retains a 2% royalty of which 1% can be purchased by the Company for USD $750K.

ON SOCIAL RESPONSIBILITY

  • SilverCrest Metals Inc., released its inaugural 2022 Environmental, Social, and Governance (ESG) Report. The Company’s principal focus is its Las Chispas Operation located in Sonora, Mexico. “This report reflects Silver Crest’s dedication to creating a strong sustainability framework and provides stakeholders with a comprehensive overview of the Company’s ESG performance and goals”.

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, phyllic alteration (quartz-sericite-pyrite) in an intrusive rock in a prospect in Tamaulipas, Mexico.  Photo by Miguel A Heredia.