Highlights on the Second Week of October, 2017. Mineral Exploration in Mexico

During the 41st week of the year (October 9th to October 15th, 2017), at least 24 press releases were announced by companies working in Mexico, including seven quarterly reports. ON MEXICO ISSUES: The Secretaría de Economía announced the liberation of over 195 K hectares of ground for staking. ON EXPLORATION: Eight companies disclosed exploration efforts during the week: In Sonora, Azure Minerals is about to start drilling its Oposura and Sara Alicia projects; Canuc Resources released underground and surface rock sampling results from its San Javier project; Colibri Resource released an exploration update of its Evelyn project; Silver Viper is drilling its Clemente project. In Sinaloa Chesapeake Gold commenced a 5,000 m drilling program focused in two prospects on its Yarely project. In Coahuila, Discovery Metals received the environmental permit to drill five of its projects; Silver Bull Resources released the results from the first two underground holes to test high grade structural feeders at its Sierra Mojada project. ON MINING: Endeavour Silver, Capstone Mining, Leagold Mining, Great Panther Silver, Alamos Gold, Gogold Resources and Alamos Gold reported preliminary third quarter results. Torex Gold signed a 25 year land agreement with the Puente Balsas Sur Ejido, needed for the exploration and operation of its Media Luna project in Guerrero. Telson Resources received the environmental permit for mine and related infrastructure on its Tahuehueto project in Durango.  ON FINANCING: Colibri Resources settled a $10 K debt by issuing shares to one of its directors. Sierra Metals entered into an open market agreement with a consortium to raise up to $55 M on the NYSE market. Fortuna Silver’s CEO bought approximately US$430 K shares of the company in the open market. Oroco Resources intends to complete a non-brokered private placement to raise up to $600 K. ON RESOURCES AND DEVELOPMENT: Fortuna Silver released exploration results from its San Jose property in Oaxaca, including high-grade drilling results. ON DEALS AND CORPORATE ISSUES: No Relevant news.

ON MEXICO ISSUES

  • The Secretaría de Economía (Bureau of Economy) released the long due and eagerly awaited second release of previously held land of 2017, ground that is now going to be open for mining concession applications. Over 44 K hectares of reduced land (from eleven concessions), 131 K hectares of abandoned concessions (95) and almost 20 K hectares of cancelled concessions (96) are to be available in one month for staking by individuals and corporations.

ON EXPLORATION

  • Azure Minerals Ltd. is about to start drilling at its Oposura and Sara Alicia projects in Sonora. The environmental permit has been granted for both projects. At Oposura a total of 7,000 m of drilling is planned in 120 holes on a 1,400 by 400 m area. At Sara Alicia geological mapping, rock chip channel sampling, gridded soil sampling, and initial target identification has been completed. A zone of high grade gold and cobalt with samples of up to 39 g/t Au and up to 6% Co has been identified and is to be drill tested with 5-6 holes for a total of 450-500 m of diamond core.
  • Canuc Resources Corp. reported high grade silver and gold from recent sampling of underground workings, and from the surface of the Carranza breccia zone at its San Javier project in Sonora. “Road construction, trenching and drill platform preparation have been completed and surface mapping and sampling are ongoing.” The focus is on the breccia zones found at the intersections of the two fault trends. Results include 0.5 m @ 10.3 g/t Au, 250 g/t Ag; 0.5 m @ 8.0 g/t Au, 246 g/t Ag; 1.23 m @ 6.0 g/t Au, 174 g/t Ag; 1.2 m @ 10.5 g/t Au, 220 g/t Ag; 1.6 m @ 9.5 g/t Au, 150 g/t Ag; 1.6 m @ 11.3 g/t Au, 100 g/t Ag; 0.9 m @ 5.1 g/t Au, 17,200 g/t Ag; 1.3 m @ 1.9 g/t Au, 6,230 g/t Ag; 1.4 m @ 2.0 g/t Au, 2,395 g/t Ag; 0.7 m @ 1.6 g/t Au, 150 g/t Ag; 2.5 m @ 1.1 g/t Au, 600 g/t Ag; 3.0 m @ 1.2 g/t Au, 470 g/t Ag.
  • Chesapeake Gold Corp. commenced a 5,000 m diamond drill program at its 68,000 has Yareli project in Sinaloa. The phase I program is to focus on the Central and Loretos prospects. “At Central prospect Initial drill holes will test the four subparallel north – northwest trending stockwork structures up to one kilometre in length and associated extensive breccia bodies..” At Loretos three widely spaced holes are planned to test the west side of a “V” shaped IP anomaly which is over 3 km long and one km wide.
  • Colibri Resource Corp. released a report on its 506 hectare Evelyn project in Sonora. Geological and structural mapping, as well as rock chip sampling were conducted. The property is underlain by Jurassic rhyolites, andesites and sandstones. Prospects highlighted include the Mine Working shear zone, the Cerro Rojo Fault and the Quartz Vein Swarm. Of 74 samples collected, 33 returned values greater than 0.1 g/t Au.
  • Discovery Metals Corp. received drill permits for five of its projects from the Mexican environmental regulator, SEMARNAT. These permits cover the La Kika, Renata, Santa Rosa, La Minerva, and Jemi-Rare projects in northern Coahuila.
  • Silver Bull Resources Inc. provided the results from two drill holes of its underground drill program targeting high-grade structures at its Sierra Mojada project in Coahuila. The first hole intersected 7 m @ 121 g/t Ag, 0.52% Cu, including 2 m @ 376 g/t Ag, 3.0% Cu. The second hole intersected 25.5 m @ 294 g/t Ag, 0.96% Cu, including 11.5 m @ 486 g/t Ag, 1.13% Cu and 4 m @ 966 g/t Ag, 2.0% Cu, with the hole entering and ending in an unmapped working. The results confirm the East-West continuity of the first of three structures to be drilled.
  • Silver Viper Minerals Corp. is performing a 2,000 m drilling program at its Clemente project in Sonora. The diamond drilling is designed to target the down dip projection of the steep dipping quartz shear vein and adjacent quartz veining observed in accessible historical mine workings.

ON MINING

  • Endeavour Silver Corp. reported production results for the third quarter 2017. At Guanaceví in Durango, 74.6 K tonnes were produced at a rate of 811 tonnes per day (tpd) @ 250 g/t Ag, 0.57 g/t Au and recoveries of 87.2% Ag, 89.5% Au, to produce. 522.9 K Oz Ag, 1,224 Oz Au. At Bolañitos, in Guanajuato, 114.5 K tonnes were produced at a rate of 1,245 tpd @ 85 g/t Ag, 2.15 g/t Au and recoveries of 81.1% Ag, 82.4% Au, to produce 253.8 K Oz Ag, 6,523 Oz Au. At El Cubo in Guanajuato, 133.6 K tonnes were produced at a rate of 1,452 tpd @ 135 g/t Ag, 1.35 g/t Au and recoveries of 83.7% Ag, 83.3% Au, to produce 485.4 K Oz Ag, 5,901 Oz Au. In July the production decision was made on El Compas project in Zacatecas. In August were received the permits for the mine and plant at Terroneras, Jalisco. Pending are the permits for the waste dumps and tailings areas.
  • Torex Gold Resources Inc. signed a long term, common land lease agreement with the Puente Sur Balsas Ejido for the use of the land required for the exploration, construction and mining of minerals at its Media Luna project in Guerrero. The 25 year agreement can be revoked at the company’s discretion, with one year’s notice.
  • Telson Resources Inc. received the environmental permit (MIA) authorizing the construction of a mineral processing facility, related mining facilities, plus infrastructure and necessary underground development at its Tahuehueto project in Durango.
  • Capstone Mining Corp. announced production results for the quarter terminating at the end of September 2017. At Cozamin higher throughput than planned saw 223.8 K tonnes mined from underground and 223.4 K tonnes processed at a rate of 2,429 tpd, averaging 1.98% Cu, 0.8% Zn, 0.08% Pb, 42 g/t Ag; recoveries stood at 96.1% Cu, 65.7% Zn, 7.0% Pb, 79.7% Ag, to produce 15,688 tonnes of Cu concentrate, 2,463 tonnes of Zn concentrate and 20 tonnes of lead concentrate.
  • Leagold Mining Corp. disclosed Q3 2017 gold production at the Los Filos mine in Guerrero. During the period the Los Filos mine produced 47,766 Oz Au.
  • Great Panther Silver Ltd. released production results for the third quarter 2017. At the Guanajuato Mine Complex in Guanajuato, 76.1 K tonnes were milled @ 155 g/t Ag, 2.54 g/t Au; with recoveries of 89.8% Ag, 88.1% Au, to produce 341.6 K Oz Ag, 5,471 Oz Au. At Topia in Durango, 18 K tonnes were milled @ 362 g/t Ag, 0.97 g/t Au; with recoveries of 91.1% Ag, 67.1% Au, to produce 191.2 K Oz Ag, 377 Oz Au.
  • Alamos Gold Inc. reported production for the third quarter 2017, including figures from its Mexican operations. At Mulatos (including La Yaqui) 36,300 Oz Au were produced, and 14,900 Oz Au at El Chanate, both in Sonora.
  • GoGold Resources Inc. announced production for the quarter terminated at the end of September 2017. At its Parral tailings operation 353.4 K Oz Ag were produced. An improvement on the recoveries by changing agglomeration and heap parameters can be seen in the graphic below.
  • Hecla Mining Co. reported preliminary production results for the third quarter 2017, including figures from its Mexican operations. At San Sebastian in Durango, the mill operated at 397 tpd to produce 880.9 K Oz Ag, 8,199 Oz Au.

ON FINANCING

  • Colibri Resources Corp. has issued shares in the amount of $10,000 to settle an outstanding indebtedness due to Ed Stringer, a director of the company (Evelyn, Sonora).
  • Sierra Metals Inc. entered into an open market Sale Agreement with Jefferies LLC, C. Wainwright & Co, LLC Scotia Capital (USA) Inc. and Noble Capital Markets Inc., on which the company may during the term of the agreement sell common shares in the NYSE up to the amount US$55 M in gross proceeds. No common shares will be offered or sold in Canada (Cusi and Bolivar mines, both in Chihuahua).
  • Fortuna Silver Mines Inc. announced that Jorge A. Ganoza, CEO of the company increased his equity position in Fortuna by acquiring 131,800 common shares on the open market, valued at close to US$430 K. (San Jose, Oaxaca).
  • Oroco Resource Corp. intends to complete a non-brokered private placement to raise up to $600 K of gross proceeds (Xochilapa, Guerrero).

ON RESOURCES AND DEVELOPMENT

  • Fortuna Silver Mines Inc. updated exploration efforts at its San José mine in Oaxaca, where four rigs are testing the Trinidad-Bonanza-Stockwork complex, the Trinidad North Extension and the sub-parallel Victoria vein (formerly Ocotlan vein). Relevant estimated true width intercepts (TW) comprise 4.1 m @ 247 g/t Ag, 1.8 g/t Au; 21.0  m @ 153 g/t Ag, 0.9 g/t Au; 3.6 m @ 281 g/t Ag, 1.2 g/t Au; 4.5 m @ 356 g/t Ag, 3.5 g/t Au; 3.7 m @ 1,106 g/t Ag, 6.3 g/t Au in the Victoria vein, and 6.7 m @ 218 g/t Ag, 1.3 g/t Au; 2.2 m @ 195 g/t Ag, 1.1 g/t Au; 2.2 m @ 195 g/t Ag, 1.1 g/t Au at the Trinidad/Bonanza veins and Stockwork.

ON DEALS AND CORPORATE ISSUES

  • 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 below, secondary copper minerals around a quartz veinlet with oxidized sulfides, which is cutting an intrusive rock on a prospect of the Durango Altiplano. Photo by Jorge Cirett.

BlackCopper

Excellon Increases Production to 500,763 Silver Equivalent Ounces in Q3 2017

http://www.excellonresources.com/news/details/index.php?&content_id=172

Toronto, Ontario – October 16, 2017 – Excellon Resources Inc. (TSX:EXN; TSX:EXN.WT; OTC:EXLLF) (“Excellon” or the “Company”) is pleased to announce third quarter 2017 production results from the Platosa Mine in Durango, Mexico.

Q3 2017 Production Highlights

  • Material increase in production following the completion of the Optimization Plan, including:
    • Silver equivalent (“AgEq”) production of 500,763 ounces, up 73% from Q2 2017 and 96% from Q3 2016
    • Silver production of 226,173 ounces, up 41% from Q2 2017 and 47% from Q3 2016
    • Lead production of 1.6 million pounds, up 86% from Q2 2017 and 78% from Q3 2016
    • Zinc production of 2.2 million pounds, up 95% from Q2 2017 and 86% from Q3 2016
  • Production rates averaging 200 tonnes per day (tpd) vs. 125 tpd in Q2 2017
  • Production headings accessed four mantos by the end of the quarter, including the high-grade 623 Manto, with further increases in production planned through the remainder of the year

“The turnaround in production at Platosa was clearly evident during the third quarter, with significantly improved tonnage-per-day, grades and costs,” stated Brendan Cahill, President and Chief Executive Officer.  “All-in sustaining cost decreased during the quarter to approximately $11-$13 per payable silver ounce.  We are now well positioned to continue ramping up production from four mantos through the fourth quarter and to realize a further decrease in AISC and increase in cash flow.”

SIERRA METALS REPORTS THIRD QUARTER 2017 PRODUCTION RESULTS

http://www.sierrametals.com/investors/news-releases/press-release-details/2017/Sierra-Metals-reports-third-quarter-2017-production-results/default.aspx

TORONTO, Oct. 16, 2017 /PRNewswire/ – Sierra Metals Inc. (TSX: SMT) (NYSE AMERICAN: SMTS) (BVL: SMT) (“Sierra Metals” or “the Company”) is pleased to report third quarter 2017 production results featuring the highest quarter of throughput and second highest quarter of metal production to date from the Yauricocha Mine.

Results are from Sierra Metals’ three underground mines in Latin America: the Yauricocha polymetallic Mine in Peru and the Bolivar copper and Cusi silver Mines in Mexico.

Third Quarter 2017 Production Highlights

  • Silver equivalent production of 2.7 million ounces; an 8% decrease from Q3 2016
  • Copper equivalent production of 23.5 million pounds; an 8% decrease from Q3 2016
  • Total tonnes processed of 504,751; a 6% decrease from Q3 2016
  • Increase of 3% in silver equivalent production and 13% increase in throughput at Yauricocha during Q3 2017 vs Q3 2016

During the third quarter of 2017, consolidated metal production decreased 8% compared to Q3 2016. The decrease in metal production was due to lower production in Mexico which was partially offset by record throughput in Peru. The temporary decline in production in Mexico was mainly due to the implementation of a new plan to improve operational performance and produce profitable silver ounces at Cusi and improve efficiencies at our Bolivar copper mine. Like the successful program at Yauricocha in Peru, the Company has engaged in an operation turnaround program in Mexico to modernize operations, improve production and lower costs. We expect to see the results from this program become more apparent in the latter part of 2017 and early 2018.

ALIX DEFINES LITHIUM TARGET OVER 2.5 KILOMETER STRIKE LENGTH ON THE AGUA FRIA PROJECT, SONORA MEXICO

http://www.alixresources.com/index.php?page=news&id=1241

October 16th, 2017, Vancouver, BC, Canada –ALIX RESOURCES CORP. (“Alix” or the “Company”) (AIX-TSX:V) (37N–FRANKFURT) announces that Perth-based lithium processing technologist, Lithium Australia NL (ASX: LIT)(“LIT”) has moved to a 54% controlling stake in the Electra lithium project in northwest Mexico. The project comprises the Tecolote, Tule, and Agua Fria concessions and is currently the subject of a farm-in and joint venture between Alix and LIT. LIT has the right under the JV terms to earn an ultimate 65% holding in Electra. Lithium Australia moved to the majority 54% ownership on completion of a recent drilling program.

This generated confirmation of a new 2.5 km-long, 25-50 m-thick mineralized zone lying on the western flank of the Agua Fria concession in what the JV partners described as the project’s best discovery yet.

The terms of the acquisition of the joint venture for the Stage 3 earn-in are described in the table below.  LIT was requested by Alix the Stage 3 Joint Venture earn-in be accessed early to ensure the maiden drill campaign was not implement for lack of funds.  All other terms of the Joint Venture Agreement remain fully enforceable.

Avino Announces Q3 2017 Production Results

http://www.avino.com/s/news.asp?ReportID=805226

Avino Silver & Gold Mines Ltd. (NYSE-American: ASM; TSX.V: ASM; “Avino” or the “Company”)announces third quarter 2017 production results from its Avino property near Durango, Mexico.

Consolidated Production Highlights for Third Quarter 2017 (Compared to Third Quarter 2016)

  • Silver equivalent production increased by 17% to 760,756 oz*
  • Gold production increased by 47% to 2,673 oz
  • Silver production decreased by 10% to 368,456oz
  • Copper production increased by 6% to 1,106,305 lbs

* For comparison purposes, the silver equivalent ratio has been calculated using metal prices of $17.45 oz Ag, $1,316 oz Au and $2.99 Lb Cu. Mill production figures have not been reconciled and are subject to adjustment with concentrate sales. Calculated figures may not add up due to rounding.

“We are pleased to report a strong quarter and that we are on pace to reach our budgeted production targets for 2017.

Our expansion is on schedule and I’d like to thank our hard-working staff, both in Mexico and Canada, for their efforts.”

Highlights on the First Week of October, 2017. Mineral Exploration in Mexico

During the 40th week of the year (October 2nd to October 8th, 2017), at least 25 press releases were announced by companies working in Mexico, including two quarterly reports. ON MEXICO ISSUES: a blockade to Goldcorp’s Peñasquito mine entrance in Zacatecas was lifted by assembling a government sponsored round table to assess protesters arguments. ON EXPLORATION: Activity seems to be gaining pace, with ten companies presenting press releases on their properties. In Sonora, Silver Viper has commenced the first drilling campaign on its Clemente project; Aztec Minerals disclosed interesting Au-Cu values from trenches at its Cervantes project; Canuc Resources released drilling results from its San Javier property. In Chihuahua, Sierra Metals informed on thick high-grade intercepts from drill testing deep geophysical targets at its Bolivar mine; Radius Gold disclosed initial rock chip sampling from its Los Tarros property; Harvest Gold announced exploration results on the Cascaritas prospect within its Cerro Cascaron project. In Sinaloa, Santana Minerals released metallurgical results from its Cuitaboca property. In Zacatecas and San Luis Potosi Alset Minerals released lithium and potassium results from auger drilling on 13 additional salars. In Veracruz Almadex Minerals disclosed good assay results on a long interval of its last hole at El Cobre; Mexican Gold informed that the first hole of a new drill campaign at its Las Minas property intersected two mineralized intervals containing chalcopyrite and bornite. ON MINING: Telson announced that mill clean up and refurbishment is nearing completion at its Campo Morado mine in Guerrero. US Antimony is to increase production at three of its four mines in Mexico. Americas Silver produced its first lead and zinc concentrates from the San Rafael mine in Sinaloa. Alio Gold and Coeur Mining presented third quarter 2017 reports.  ON FINANCING: Southern Silver closed the final tranche of its private placement, raising $502 K; Azure Minerals is to seek shareholder approval to share consolidation. ON RESOURCES AND DEVELOPMENT: Candelaria Mining retracted the environmental permit on its Caballo Blanco project in Veracruz.  Kootenay Silver announced assay results from drilling by partner Pan American Silver on its La Negra prospect in Sonora. ON DEALS AND CORPORATE ISSUES: Magellan Resources announced that its purchase of the SDA mill in Nayarit remains on track to completion. Radius Gold signed a binding agreement with a private Mexican company on Los Tarros property in Chihuahua. Prospero Silver received authorization from the TSX on a related third party agreement.

ON MEXICO ISSUES

  • Goldcorp suffered entrance blockades at Peñasquito, in Zacatecas. For a week the entrance to the Peñasquito mine in Zacatecas was blocked by protesters. The blockade was terminated by the establishment, aided by the federal government, of a round table to discuss the protesters grievances. The table is to be leaded by the Zacatecas State government.

ON EXPLORATION

  • Silver Viper Minerals Corp. has mobilized a drill rig to its Clemente project in Sonora. The drill program envisages 2,000 m of diamond core drilling, focusing on the El Mundo and Nuevo Mundo areas, where Ag-Au-base metals mineralization is hosted by quartz shear veins, quartz stockworks and hematitic vein breccias. The best sample to date is from the El Mundo area is 0.5 m wide @ 1,895 g/t Ag, 4.46 g/t Au, 1.9% Pb, 1.6% Zn. The environmental permit for drilling has been approved, with land and access permit agreements in place.
  • Kootenay Silver Inc. reported that Aztec Minerals Corp. disclosed attractive sampling results from trenching in the Jasper prospect at the Cervantes property in Sonora (which is under option from the former by the latter). The new manual trenching connected two previous trenches, extending Cu-Au-Mo mineralization for 92.3 m @ 0.52% Cu, 0.62 g/t Au, 76 ppm Mo, staying open in both directions. The rock is highly leached quartz feldspar porphyry with chrysocolla and neotocite as oxide copper minerals. A 50 by 50 m soil grid was completed over the Jasper project.
  • Alset Minerals Corp. released results from auger sampling on 13 additional salars in Zacatecas and San Luis Potosi. “Of the 13 salars sampled, 9 had average lithium grades exceeding 200 ppm, with 4 salars averaging lithium grades of around 400 ppm and higher…”. Dry lake sediment samples were collected using a hand-held motorized auger, or a hammer and hollow-tube sampling method, and assaying the material collected between 0.5 and 1.0 m of depth. The Caliguey salar averaged 769 ppm Li and 3.4% K; the Hernandez salar averaged 556 ppm Li, 1.6% K; the Chapala salar averaged 416 ppm Li, 1.2% K.
  • Almadex Minerals Ltd. disclosed assays for the last hole at the Norte area of its El Cobre property in Veracruz. Noteworthy intervals comprise 481.65 m @ 0.67 g/t Au, 0.27% Cu, including 187.25 m @ 1.02 g/t Au, 0.33% Cu (from 354.00 to 541.25 m). The hole was drilled to test for continuity of mineralization between two other holes within the area.
  • Sierra Metals Inc. informed that the first four holes to test 22 high priority targets identified with the recently completed Titan 24 geophysical survey intersected wide high-grade copper bodies in three different zones with no previously known mineralization. The intercepts include 25.3 m @ 0.38 g/t Au, 31 g/t Ag, 1.55% Cu, 1.95% Zn; 28.65 m @ 0.34 g/t Au, 34 g/t Ag, 1.97% Cu, 0.91% Zn; 13.05 m @ 1.79 g/t Au, 37 g/t Ag, 2.05% Cu; 33.4 m @ 0.10 g/t Au, 32 g/t Ag, 1.04% Cu, 0.20% Zn. The four intercepts are deep seated, between 340 m and 492.90 m in the core, along length (Note of compiler.- This seems a significant discovery).
  • Canuc Resources Corp. announced that the third hole at its San Javier project in Sonora intersected the Santa Rosa vein in two splays, the first with 0.37 m @ 156 g/t Ag, 0.39 g/t Au, 1.0% Pb, 5.6% Zn, and the second with 1.48 m @ 1,514 g/t Ag, 2.91 g/t Au, 4.2% Pb, 5.6% Zn. Canuc has concluded the agreement to acquire the Tule 1 concession, which envelops the property to the NE, adding considerable strike length to the Santa Rosa vein. In the NE land package is the Carranza breccia zone, with 11 m @ 274 g/t Ag on the surface, and the Cerro Colorado breccia zone, with 11.3 m @ 285 g/t Ag.
  • Radius Gold Inc. has signed a binding agreement with a private Mexican company to option the 473 has Los Tarros project in Chihuahua. Several breccia bodies occur within a 3.5 km by 1 km area, with the largest breccia exceeding 250 m by 250 m. The volcanic hosted explosive breccias are cemented by silica and iron oxides. The average of 26 samples collected is 1.42 g/t Au, 66 g/t Ag. At the Rosario breccia (>150 m by 60 m) an old pit returned 10 m @ 2.95 g/t Au, 18 g/t Ag, staying open in all directions. Other significant breccia bodies include Regalito, La Bufa (the only one hosted in granodiorite), San Nicolas and San Miguel.
  • Mexican Gold Corp. informed that step-out drilling at its Las Minas property in Veracruz intersected two intervals of chalcopyrite-bornite-magnetite mineralization in the first hole drilled beyond the current western limit of the El Dorado/Juan Bran zone. A 3.0 m interval contains magnetite and an estimated chalcopyrite content of up to 3% by volume. An 8.0 m interval further downhole is a mineralized exoskarn with up to an estimated 5% chalcopyrite by volume, and visible bornite and magnetite. Assays are pending on these core-length intervals.
  • Santana Minerals Ltd. reported good results from initial metallurgical test work on composite samples from three drill holes from the Mojardina prospect at its Cuitaboca project in Sinaloa. A 75 micron, 48 hours, bottle-roll standard carbon in leach test on the three holes returned 93.1%, 95.3%, 98.4% silver recoveries respectively; the rougher flotation test achieved 93.6%, 88.2%, and 86.8% silver respectively.
  • Harvest Gold Corp. identified six silver-rich polymetallic veins at the Cascarita prospect of its Cerro Cascaron Project in Chihuahua. High grade silver with strong Pb and Zn values were sampled in historic adits. The six veins are within a 900 m by 300 m corridor, attain up to 3.3 m in width and display colloform and drusiform quartz textures, as well as local amethyst quartz. Vein textures indicating boiling are preserved at one of the veins, as quartz pseudomorphs after bladed calcite. Results include 1.4 m @ 114 g/t Ag, 5.2% Pb, 1.3% Zn; 2.0 m @ 127 g/t Ag, 8.7% Pb, 0.5% Zn; 2.3 m @ 311 g/t Ag, 1.6% Pb, 0.3% Zn; 2.1 m @ 245 g/t Ag, 6.4% Pb, 0.5% Zn; 3.3 m @ 104 g/t Ag, 2.4% Pb, 0.5% Zn.

ON MINING

  • Telson Resources Inc. announced that mill clean up and refurbishment is nearing completion at its Campo Morado mine in Guerrero. Underground mining is being ramped up, having delivered 25 K tonnes to the coarse ore patio. Ore crushing is operational, putting 5 K tonnes to the crushed ore stockpile. Commercial production at a 1,400 tonnes per day (tpd) is projected to be achieved during October, while production levels to the 2,500 tpd mill capacity is to take 6 to 12 months.
  • United States Antimony Corp. plans to increase production at three of its four mines in Mexico. At Wadley, in San Luis Potosi, the gravity mill will process lower grade ore (not direct shipping ore), which could results in a 25-50% increase in production. At Soyatal in Queretaro, direct shipping ore is to be produced once new powder magazines are built. In Zacatecas a mine road to the Guadalupe mines is to be repaired, allowing mining to be resumed at the Santa Monica mine. The Los Juarez mine in Queretaro is awaiting a permit from SEMARNAT for the cyanide circuit at the Puerto Blanco mill.
  • Americas Silver Corp. announced that the first lead and zinc concentrates produced from its San Rafael project at its Cosalá operation in Sinaloa were produced during the last week of September. Commercial production is expected to be reached before the end of the fourth quarter, when the Nuestra Señora mine is expected to enter in care and maintenance.
  • Alio Gold Inc. released 3rd quarter preliminary production results from its San Francisco mine in Sonora. 1.9 M tonnes of ore @ 0.40 g/t Au and 5.2 M tonnes of waste were moved (3.15 waste to ore strip ratio) to produce 19,429 Oz Au, 8,808 Oz Ag. Production guidance stays on track to produce 88 -90 K Oz Au during 2017.
  • Coeur Mining Inc. disclosed third quarter 2017 production results, including figures from its Mexican operations. At Palmarejo, in Chihuahua, 413.1 K tonnes were milled @ 172 g/t Ag, 2.49 g/t Au, achieving recoveries of 83.6% Ag, 83.1% Au, to produce 1.91 M Oz Ag, 28,948 Oz Au

ON FINANCING

  • Southern Silver Exploration Corp. closed the final tranche of its previously reported private placement, for gross proceeds of $502 K. The three tranches gathered total gross proceeds of $3.58 M (Cerro Las Minitas, Durango).
  • Azure Minerals Ltd. is to seek shareholder approval for consolidation of the issued capital through the conversion of every twenty existing shares into one share.

ON RESOURCES AND DEVELOPMENT

  • Candelaria Mining Corp. decided to retract the environmental permit for the Caballo Blanco project in Veracruz, citing the current political climate and upcoming state and federal elections. “…The postponing of the permit will allow Candelaria to optimize certain aspects of the project and improve upon existing and establish new relationships with our stakeholders. “
  • Kootenay Silver Inc. announced the results of 13 infill drill holes completed by Pan American Silver Corp. on its La Negra property in Sonora. Highlighted intercepts are 34.3 m @ 159 g/t Ag (including 8.2 m @ 306 g/t Ag); 17.1 m @ 192 g/t Ag (including 3.55 m @ 597 g/t Ag); 48.7 m @ 281 g/t Ag (including 1.95 m @ 3,004 g/t Ag, 1.0 m @ 2,146 g/t Ag, 5.35 m @ 558 g/t Ag); 21.0 m @ 274 g/t Ag (including 1.1 m @ 3,018 g/t Ag); 31.8 m @ 403 g/t Ag (including 8.85 m @ 1,098 g/t Ag); 29.25 m @ 138 g/t Ag; 38.7 m @ 289 g/t Ag (including 7.6 m @ 674 g/t Ag); 76.35 m @ 236 g/t Ag; 53.8 m @ 174 g/t Ag (including 12.15 m @ 308 g/t Ag); 5.35 m @ 571 g/t Ag.

ON DEALS AND CORPORATE ISSUES

  • Magellan Gold Corp. announced that its purchase of the SDA mill in Nayarit is on track to be closed by the end of October 2017.
  • Radius Gold Inc. has signed a binding agreement with a private Mexican company to option the 473 has Los Tarros project in Chihuahua. Radius can earn a 100% interest in the project by making an immediate payment of US5 K, and staged payments over four years totaling US$1.68 M, of which US$1.2 M is a final payment at the end of the four year period. A 2% NSR can be bought by Radius for US$1 M for each 1%.
  • Prospero Silver Corp. has received TSX approval of the option to own agreement with Exploraciones Altiplano S.A. de C.V. regarding Altiplano’s Buenavista claims in Durango. The agreement constitutes a “related party transaction” under the TSX policies.

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 below, the Peña Colorada mine pit in Colima. Photo by Jorge Cirett.

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Highlights on the Fourth Week of September, 2017. Mineral Exploration in Mexico

During the 39th week of the year (September 25th to October 1st, 2017), at least 22 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, No relevant news. ON EXPLORATION, in Sonora, San Marco continues to define the footprint of a porphyry copper system at its 1068 project. In Chihuahua, Kootenay is to drill the Las Venadas zone of its La Cigarra project. In Zacatecas, Arian Silver is to halt exploration in three lithium projects after receiving auger drill results. ON MINING, Telson released details on the sale of concentrate from its Tahuehueto property in Durango. Arian Silver released financial results for the first six months of 2017.  ON FINANCING; Defiance Silver completed the first tranche of its financing for $1.7 M, VVC Exploration has raised CA$900 K and is increasing the offering ceiling to CA$2 M., MX Gold closed a non-brokered private placement for C$4 M and San Marco announced an upcoming private placement for C$1.26 M. Silver Viper completed its IPO raising $3.0 M.  ON RESOURCES AND DEVELOPMENT; Lea Gold commenced the portal development of the 1.3 km ramp at Bermejal in Guerrero.  GoldCorp has achieved 40% completion on the Pyrite Leach Project. Levon informed on the drill definition of a gold rich zone at its Cordero property in Chihuahua. Mexican Gold commenced the phase-2 drilling of its Las Minas project in Veracruz.  ON DEALS AND CORPORATE ISSUES, Sierra Metals and Jinchuan Group signed a MOU for cooperation on the Bahuerachi project in Chihuahua.

ON MEXICO ISSUES

  • No relevant news.

ON EXPLORATION

  • San Marco Resources Inc. announced that the surface alteration and mineralization footprint on its 1068 project in Sonora has been mapped over an area of 1.6 Km x 1.5 km, and is still open in two directions. A stockwork-quartz-veined volcanic lithocap phyllically altered sits on top of a poorly exposed intrusive with potassic alteration and fresh pyrite, chalcopyrite and molybdenite. Semi-continuous channel sampling over part of a new road cut ran 62 m @ 0.1% Cu, 215 ppm Mo, 0.044 g/t Au. Exploration plans include further geologic mapping up to 1 km to the NE and SE, expansion of the rock chip sampling grid and detailed mapping on the lithocap to define drill targets and drilling the potassic core.
  • Kootenay Silver Inc. completed the last hole at Las Venadas zone of its La Cigarra property in Chihuahua. The rig has been mobilized to La Navidad zone in the same project. This zone is 500 m to the east and parallel to the San Gregorio zone, which holds 60% of the mineral resource estimate at La Cigarra. Rock and soil sampling programs completed on La Navidad defined a mineralized area 1,000 m long by 300 m wide that is similar in size and in soil values as in the San Gregorio zone.
  • Arian Silver Corp. informed that in light of assay results from the initial auger drill program carried out in the Pozo Hondo, Columpio and Abundancia projects in Zacatecas, no further exploration in the properties is to be undertaken. The company owns 12 silver mining concessions covering 1,500 has in Zacatecas.

ON MINING

  • Telson Resources Inc. announced the final details of the sale of 155.4 tonnes and 316.4 tonnes of Pb and Zn concentrates respectively, from its Tahuehueto project in Durango, for proceeds of US $1.6 M. The concentrates were produced from 4,123 tonnes of ore mined from the Level 10 of El Creston Zone, grading 6.26 g/t Au, 60 g/t Ag, 2.08% Pb, 5.61% Zn. The recoveries achieved were @ 83.6% Au, 89.3% Ag, 86.1% Pb, 85.5% Zn. Mining is averaging 166 tonnes per day during September 2017, with 2,530 tonnes of ore awaiting transport to the Atocha mill.
  • Arian Silver Corp. released its financial results for the first six months of 2017. At the end of the period the company had total assets of US$1.5 M, of which $0.9 M was cash.

ON FINANCING

  • Defiance Silver Corp. closed the first tranche of its private placement for gross proceeds of $1.72 M. Finder’s fees of $122.9 K were paid in connection with the first tranche of the private placement (San Acacio, Zacatecas).
  • VVC Exploration Corp. has raised to date about CA$900 K and have commitments for an additional $460 K on its previously announced CA$1 M in a non-brokered private placement. The company is increasing the maximum amount of the offering to CA$2 M (Samalayuca copper project, Chihuahua).
  • Silver Viper Minerals Corp. has successfully completed its initial public offering (IPO), for gross proceeds of $3.0 M (Clemente, Sonora).
  • MX Gold Corp. closed a non-brokered private placement, for gross proceeds of C$4 M. Aggregate cash finder’s fees of $15.6 K will be paid (Magistral, Durango).
  • San Marco Resources Inc. is arranging a private placement to raise gross proceeds of up to C$1.26 M (Chunibas, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Lea Gold mining Corp. has commenced portal development for the 1,325 m long exploration ramp at its Bermejal Underground deposit in Guerrero. The US$ 13 M budget includes 3,136 m of ramp and cross-cut development and two ventilation raises totaling 560 vertical m. The Bermejal Underground drilling program is over 50% complete with 28,846 m drilled on 67 holes of the planned 56,000 m in 113 holes. “All holes intersected iron-oxide skarn mineralization as targeted and only two holes …..  were below a 3 gpt over 3 m diluted minimum width threshold” . The mineralization remains open in several directions.
  • GoldCorp Inc. informed the Pyrite Leach project (PLP) at Peñasquito in Zacatecas has achieved 40% completion on its $420 M investment, which is expected to be commissioned three months ahead of schedule, by the fourth quarter of 2018. The PLP is to recover 40% of the gold and 48% of the silver that currently go to the tailings. A prefeasibility study on Eco-Tails is expected by the first quarter of 2018.
  • Levon Resources Ltd. announced that drilling has extended a gold enriched sulfide zone in the northern part of the center of the current resource at its Cordero project in Chihuahua. A total of 5,655 m were drilled in 18 core holes, with results supporting extension of the gold zone for 350 m on strike to the NE. Additional infill resource drilling is needed to completely define the resource internally.
  • Mexican Gold Corp. commenced the phase 2 diamond drilling program at its Las Minitas Cu-Au property in Veracruz. The drill program is to include step-out drilling beyond the current resource at the El Dorado/Juan Bran zone, high-grade intercepts at the Cinco Señores and Las Minillas Drill targeting is to be aided by the ground magnetic and TDEM surveys.

ON DEALS AND CORPORATE ISSUES

  • Sierra Metals Inc. signed a memorandum of understanding (MOU) with Jinchuan Group Co. Ltd., formalizing the intention to cooperate on Jinchuan’s Bahuerachi property in Chihuahua. The Bahuerachi property is adjacent to Sierra´s Bolivar mine, where Sierra has been producing copper since 2012.

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 below, rock fence with fine grained quartz vein fragments in Chihuahua. Photo by Jorge Cirett.

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Highlights on the Third Week of September, 2017. Mineral Exploration in Mexico

During the 38th week of the year (September 18th to September 24th, 2017), at least 26 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, Primero Mining acknowledged the receipt of US$4.6 M of VAT refunds. ON EXPLORATION, in Sonora, Azure is to begin a 5,000 m drill program at Oposura, and San Marco is re-shaping its exploration strategy in Chunibas, to reflect the new porphyry model for the mineralization. In Chihuahua, Radius is giving shape to a coherent epithermal target at its Amalia project, and Mammoth released trench results from its Tenoriba property. In Hidalgo, Prospero is to start drilling at El Petate. ON MINING, Argonaut poured the first gold from its San Agustin project in Durango. Primero Mining is struggling while ramping up production at San Dimas, in Durango. ON FINANCING, Telson Resources entered into a loan facility for US5 M with Trafigura. McEwen Mining entered into a bought deal financing for US$46.6 M. Alamos Gold increased its revolving credit facility to US$400 M ON RESOURCES AND DEVELOPMENT; Americas Silver released a new resource estimate for its Cosalá operations in Sinaloa. Torex Gold released high-grade intercepts from the sub-sill zone at its El Limon-Guajes mine in Guerrero. Argonaut Gold updated mineral the mineral resource estimate for its La Colorada and El Castillo mines in Sonora and Durango, respectively. Alio Gold received an important permit on its Ana Paula project in Guerrero, and is working on the definitive feasibility study (DFS). ON DEALS AND CORPORATE ISSUES, Rose Petroleum presented an update on its operations in Sinaloa, and some notes on the transferal of its San Dieguito mill in Nayarit to Magellan Gold. Alio Gold is to commence the construction of a 1,200 m long decline at its Ana Paula project in Guerrero. Primero Mining provided an update on its operations, along with a description of its financial struggle. Soleil Capital and Goldplay Exploration are to create a TSX listed company. Goldgroup Mining provided its side of the story on the legal battle with DynaResource Inc.

ON MEXICO ISSUES

  • Primero Mining Inc. acknowledged having received US$4.6 M in VAT refunds from the Mexican authorities in two installments over July and August, and is working closely with the SAT to recover in due time the outstanding US$32 M.

ON EXPLORATION

  • Azure Minerals Ltd. plans to start a 100 diamond hole, 5,000 m drill program at its Oposura property in Sonora during October, once the permits have been received. “Drilling by previous explorers of 85 surface holes tested the mineralised zone over an area of approximately 1,400m (east-west) x 400m (north-south) (see Figure 1). Early drilling by Azure will twin some of these historical holes to assess whether they can be used in defining the deposit and estimating the mineral resource”. With all the historical and recent work compiled Azure has derived an exploration target of 2.5 M tonnes @ 10% – 12% Zn+Pb.
  • Prospero Silver Corp. has received from SEMARNAT the permit to drill the Petate property in Hidalgo. Drilling is to start on September 17th, 2017, with 12 holes to test four targets: Apartadero SE, Apartadero Central, Tajo and Petate #3. “High-level epithermal alteration is exposed over a 5×4 km area with highly anomalous gold and silver hosted in extensive outcrops and float of steep to strata-bound jasperoid.”
  • Radius Gold Inc. released high-grade channel sampling results from the recently optioned Amalia property in Chihuahua. At the Campamento zone, where a 150 m by 300 m zone of intense silicification, brecciation and stockwork veining has been mapped, results include 62 m @ 0.43 g/t Au, 98 g/t Ag; 14 m @ 1.47 g/t Au, 167 g/t Ag; including 7 m @ 2.37 g/t Au, 239 g/t Ag. At the Guadalupe target, a quartz sulfide vein breccia hosted in andesites returned 7 m @ 3.62 g/t Au, 1,048 g/t Ag; 7 m @ 2.4 g/t Au, 188 g/t Ag; 4 m @ 3.92 g/t Au, 888 g/t Ag. At Dulces Nombres the vein in a short tunnel returned 1 m @ 34 g/t Au, 13 g/t Ag; 1 m @ 20.3 g/t Au, 44 g/t Ag; 1.5 m @ 114.5 g/t Au, 57 g/t Ag. Au-Ag mineralization occurs over a vertical interval of 600 m, at multiple targets over 3.5 km of strike length.
  • Mammoth Resources Corp. released channel sample results from 14 trenches at its Tenoriba project in Chihuahua. Results include (true width) 11.5 m @ 0.64 g/t Au, 2 g/t Ag; 16.0 m @ 0.38 g/t Au, 4 g/t Ag; 15.5 m @ 0.99 g/t Au, 6 g/t Ag in the Moreno zone; 7.0 m @ 1.28 g/t Au, 8 g/t Ag; 13.5 m @ 1.50 g/t Au, 3 g/t Ag; 10.0 m @ 0.42 g/t Au, 7 g/t Ag; 6.2 m @ 0.88 g/t Au, 4 g/t Ag at the Carneritos zone; 13.1 m @ 0.66 g/t Au, 1 g/t Ag; 6.4 m @ 0.47 g/t Au, 10 g/t Ag in the Masuparia zone and 6.4 m @ 0.54 g/t Au, 2 g/t Ag in the Cerro Colorado zone.
  • San Marco Resources Inc. is readjusting its exploration strategy to accommodate an evolving geologic model on its Chunibas project in Sonora. The discovery of breccias in the recent core drilling program led to re-mapping and re-logging of the core, and the generation of a larger porphyry related breccia gold model with over printing epithermal quartz-carbonate veining. The surface mineralized footprint is 3 km x 1.5, and still open. The gold mineralization occurs disseminated and vein controlled. The re-logging of the core highlighted an 88 m breccia interval @ 0.37 g/t Au, and several drill holes present magnetite bearing potassic alteration associated with elevated gold grades. To test the property under the new model a magnetic survey is to be undertaken, along with the extension of some soil lines and deeper drill holes.

ON MINING

  • Argonaut Gold Inc. announced the first pour of gold at San Agustin, Durango, as scheduled. Impressive is the claim by the company of having had no lost time accidents during the 10 months construction period.
  • Primero Mining Corp. informed that the expected ramp-up production following successful negotiations with unionized workers has been significantly delayed due to persistent issues with underground equipment reliability, which has impacted development rates and stoping activities. As a result the production guidance has been lowered to 75 K to 85 K Oz AuEq at total cash costs of between $800 and $900 per AuEq Oz and all-in sustaining cost (AISC) of $1,050 to $1,150 per Au Oz.

ON FINANCING

  • Telson Resources Inc. has entered into a loan facility and offtake agreements with Trafigura Mexico, S.A. de C.V., to sell 100% of the lead and zinc concentrate produced at its Campo Morado mine in Guerrero. The US$5 M loan has a three-year term with a six-month grace period followed with 30 repayment installments. The loan facility matures on September 2010 and bears interest at rate equal to LIBOR (3M) plus 5%.
  • McEwen Mining Inc. has entered into an agreement on a bought deal basis under which up to 9 M shares are to be purchased, for gross proceeds of $46.6 M, before deducting underwriting commissions and estimated offering expenses. If all the associated warrants are exercised before the two year expiration date aggregate proceeds are to reach US$74 M.  (El Gallo, Sinaloa).
  • Alamos Gold Inc. has secured amendments to its existing undrawn revolving credit facility, including an increase of the facility from US$150 M to US$400 M on more favourable terms (Mulatos, La Yaqui; Sonora).

ON RESOURCES AND DEVELOPMENT

  • Americas Silver Corp. released an updated mineral reserve and resource estimate for its Cosalá operations in Sinaloa. Proven and probable mineral reserves stand at 4.0 M tonnes @ 100 g/t Ag, 0.02% Cu, 1.6% Pb, 3.9% Zn; Measures and indicated resources include 8.0 M tonnes @ 128 g/t Ag, 0.24% Cu, 0.5% Pb, 1.2% Zn; Inferred mineral resources include 4.1 M tonnes @ 147 g/t Ag, 0.33% Cu, 0.6% Pb, 1.0% Zn. The updated estimate reflects the drilling programs conducted at the property between January 2016 and the end of June 2017.
  • Torex Gold Resources Inc. released high-grade intercepts in the step-out drilling to the NW of the current Sub-Sill resource area, at its El Limon-Guajes mine in Guerrero. Some highlighted core length intercepts comprise 19.3 m @ 41.4 g/t Au, 43 g/t Ag, 2.1% Cu; including 5.6 m @ 69.8 g/t Au, 57 g/t Ag, 1.7% Cu; 35.9 m @ 5.7 g/t Au, including 3.5 m @ 32.2 g/t Au and 3.5 m @ 14.1 g/t Au; 4.8 m @ 8.5 g/t Au, 20 g/t Ag, 1.2% Cu; 6.1 m @ 15.7 g/t Au. A 240 m step-out drill hole intercepted 3.6 m @ 11.6 g/t Au. These results confirm the potential for extending the current resource, already defined in an area of 250 m x 150 m. “The Sub-Sill area is located between the El Limon and El Limon Sur ore deposits and under the El Limon Sill. The Sub-Sill area occurs in the Mesozoic carbonate-rich Morelos Platform, which has been intruded by Paleocene granodiorite stocks, sills and dikes. Skarn-hosted gold mineralization is developed along the contacts of the intrusive rocks and the enclosing carbonate-rich sedimentary rocks”.
  • Argonaut Gold Inc. provided updated pit-constrained mineral resource estimates for its El Castillo and La Colorada mines in Durango and Sonora respectively. At El Castillo measured and indicated resources stand at 63.97 M tonnes @ 0.36 g/t Au, and inferred resources at 1.57 M tonnes @ 0.36 g/t Au, for contained 751 K Oz Au and 18 K Oz Au respectively. At La Colorada indicated resources stand at 29.87 M tonnes @ 0.61 g/t Au, 10 g/t Ag and inferred resources of 1.24 M tonnes @ 0.80 g/t Au, 12 g/t Ag, for contained 596 K OZ Au, 9.9 M Oz Ag and 32 K Oz Au, 488 K Oz Ag respectively.
  • Alio Gold Inc. received approval for its change of land use application from SEMARNAT on its Ana Paula project in Guerrero. A definitive feasibility study (DFS) was initiated on July 2017 and is expected to be completed on the second quarter of 2018. The Pre-feasibility study (PFS) contemplated $137 M in capital for construction of the mine, Alio has $64 M of cash on hand and is looking to raise between $90 and $100 M in project financing.

ON DEALS AND CORPORATE ISSUES

  • Rose Petroleum PLC. Entered into a memorandum of understanding with Magellan Gold Corp. for transferring 100% interest on the San Dieguito de Arriba mill in Nayarit. Magellan is to pay Rose a total consideration of US$1.5 M, with US$1.0 M in cash and US$0.5 M in Magellan restricted common shares. Rose operated the mill for 10 years with ore from its Charay mine in Sinaloa. The company continues to hold the 3,954 has Tango property in Sinaloa, with permitting for drilling Cu-Mo porphyry targets and the Au-Ag vein structure.
  • Alio Gold Inc. has approved the construction of a $16 M, 1,200 m long decline and exploration program at its Ana Paula project in Guerrero. The decline permitting has been approved by SEMARNAT, and mobilization of the contractor is expected to begin in October 2017. In about nine months, once the decline has reached its target, A 20,000 m underground drilling program with 80 holes is to test the high-grade mineralization below the planned pit.
  • Primero Mining Corp. “continues to operate in a cash conservation mode as management works on possible alternatives to refinance or repay its upcoming debt obligation. The Company continues with negotiations on the potential sale of San Dimas or potential renegotiation of its silver stream. Primero had approximately $12 million in cash at August 31st and has fully-drawn its $75 million revolving credit facility (“RCF”). The Company expects to use the proceeds from Black Fox transaction to reduce its total debt position.” “Primero has recently received approximately $4.6 million in Mexican VAT refunds over two instalments in July and August, and is working closely with SAT to arrange for the remaining eligible outstanding VAT amounts totalling $32 million to be refunded in due course.”
  • Soleil Capital Corp. signed a letter of intent (LOI) with Goldplay Exploration Ltd. to create a public TSX listed precious metals exploration company utilizing Goldplay’s exploration strategy and experience in the Rosario district, in Sinaloa. The resulting issuer will be named Goldplay Exploration Ltd.
  • Goldgroup Mining Inc. states that the company was never notified of the court case where DynaResource Inc. was awarded US$48 M (See last week Highlights), and does not recognize any of the claims therein “and is of the belief that such claims are entirely without merit.”

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 below, high-grade gold milky quartz vein with pyrrothite in Chihuahua, near Batopilas. Photo by Jorge Cirett.

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Alio Gold Receives Change Of Land Use Approval And Provides Ana Paula Project Update

http://aliogold.com/investors/news-releases/index.php?&content_id=355

September 21, 2017, Vancouver, BC – Alio Gold Inc. (TSX, NYSE AMERICAN: ALO) (“Alio Gold” or the “Company”), is pleased to provide a project update and announce that the Company has received approval for its Change of Land Use application from SEMARNAT (Mexico’s Secretary of Environment and Natural Resources) for its high grade, high margin Ana Paula Project located in Guerrero, Mexico (“Ana Paula” or the “Project”).

Key Highlights

  • Permitting milestone achieved with approval of Change of Land Use application
  • Financing proposals received indicate Project highly financeable
  • Advancing the definitive feasibility study towards completion with an investment decision expected in the second quarter of 2018

“Obtaining approval for our Change of Land Use application is the second major milestone in the permitting of Ana Paula after approval of our Environmental Impact Assessment back in April,” said Greg McCunn, Chief Executive Officer. “As we launch an exciting exploration initiative to enhance the already robust economics of Ana Paula, we are also continuing to move the Project forward towards an investment decision in the second quarter of 2018. Now that major permitting milestones are behind us, our focus is on completing the definitive feasibility study and arranging project financing. In addition, we are enhancing community and social efforts to ensure we continue to maintain respectful and mutually beneficial relationships with the surrounding communities.”

Highlights on the Second Week of September, 2017. Mineral Exploration in Mexico

During the 37th week of the year (September 11th to September 17th, 2017), at least 27 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, Mexican fiscal authorities and Canadian mining companies maintain dialog on delayed tax reimbursements for $360 M. ON EXPLORATION, in Sonora, Canuc released results on phase I of drilling at is San Javier project, while SilvercCrest informed on phase II drill results from the Babicanora vein on its Las Chispas property. In Veracruz, Almadex disclosed results from one more hole from the Norte zone of its El Cobre property. In Durango Golden Minerals is to drill test its Mogotes project. ON MINING, MX Gold is on track to complete plant expansion, and presented results from metallurgical tests at Magistral, in Durango. Mexus Gold and MarMar Holdings announced first dore production at Santa Elena, in Sonora. US Antimony presented an update on its Mexican operations in Guanajuato, Queretaro and Zacatecas. Impact Silver presented drill results from El Paso vein at its Zacualpan property in Estado de Mexico. Starcore presented financial results for the first quarter. ON FINANCING, Silver One, Southern Silver and Defiance Silver opened, extended or closed tranches of financing for $8.25 M. Minera Alamos and Leagold started trading in the US. ON RESOURCES AND DEVELOPMENT; Silver Bull released high-grade results from underground channel sampling at Sierra Mojada, Coahuila. Capstone announced good drill intercepts at Cozamin, Zacatecas. Americas Silver presented an update on development work at San Rafael in Sinaloa. Oceanus announced an updated mineral resource for El Tigre, in Sonora. Levon finished an infill drilling campaign at Cordero in Chihuahua. Mexican Gold filed at SEDAR the resource estimate for Cerro Las Minas, Veracruz. ON DEALS AND CORPORATE ISSUES, Endeavour Silver and Capstone are to share mining concessions in Zacatecas, on an arrangement based in the elevation of mineralization.

ON MEXICO ISSUES

  • Mexican fiscal authorities and Canadian mining companies maintain a table of dialog on delayed tax reimbursements for $360 M, according to José Antonio Meade (head of the IRS equivalent agency) and Bill Morneau (Canadian Finance minister). They pointed out at a joint press conference that the situation is to be solved by dialogue and under the legal framework, with the aim to avoid this situation to have an effect on Canadian investment in Mexico. Bill Morneau pointed out that the common objective is to keep Canadian companies taking opportunities in the mining sector; while Meade said that the intention is to create an adequate investment environment for companies to feel at ease, with confidence in Mexico as a country under the rule of law. According to the latter, 40% of Canadian investment in Mexico is on the mining sector.

ON EXPLORATION

  • Canuc Resources Corp. released results from the phase I drill program at its San Javier project in Sonora. A total of seven holes have been drilled on the Santa Rosa vein, over 430 m of strike length. The vein has been confirmed an all holes, remaining open in all directions. Drill intercepts include 4.35 m @ 202 g/t Ag, 0.57 g/t Au, 2.7% Pb, 2.6% Zn; 3.32 m @ 326 g/t Ag; 6.0 m @ 1.74 g/t Au; 1.0 m @ > 1,000 g/t Ag, 3.83 g/t Au, 8.2% Pb, 4.3% Zn; 0.80 m @ 270 g/t Ag, 1.79 g/t Au, 2.1% Pb, 0.8% Zn, the last two intercepts in two splays of a new vein. To note is the 43 m intercept of thin quartz and barite stringers containing disseminates and patchy sulfides, including galena and sphalerite. The stockwork is hosted by quartzite, conglomerate and siltstone.
  • SilverCrest Metals Inc. released phase II drill results from the Babicanora vein at its Las Chispas property in Sonora. True width intercepts in the Babicanora vein include 3.7 m @ 2.58 g/t Au, 333 g/t Ag; 3.6 m @ 0.14 g/t Au, 267 g/t Ag; 4.8 m @ 4.63 g/t Au, 251 g/t Ag; 0.5 m @ 4.78 g/t Au, 37 g/t Ag; 2.2 m @ 1.91 g/t Au, 139 g/t Ag; 1.9 m @ 0.29 g/t Au, 394 g/t Ag; 2.1 m @ 2.01 g/t Au, 160 g/t Ag. The average estimated true width and grade for 16 drill intercepts of the high-grade footprint is 4.0 m @ 2.88 g/t Au, 275 g/t Ag. The Babicanora vein has been traced on the surface for 3 km, of which SilverCrest has tested only 20% of that strike length.
  • Almadex Minerals Ltd. disclosed results from the last hole at the Norte zone, in its El Cobre project in Veracruz. The hole intersected 273.50 m @ 0.59 g/t Au, 0.21% Cu; including 206.7 m @ 0.74 g/t Au, 0.26% Cu;, which in turn include 151.0 m @ 0.88 g/t Au, 0.30% Cu. This hole was drilled between two other mineralized holes to test for continuity.
  • Golden Minerals Co. is to start a 1,500 m drilling program at its Mogotes property in Durango, on the third week of September 2017. The plan is to test 1.5 Km of silicification and breccias up to 500 m in width, partially controlled by a fault that juxtaposes Tertiary volcanic rocks with Cretaceous limestone. The zone is highly anomalous in arsenic and antimony, with erratic gold values of up to 1.8 g/t in surface rock samples.

ON MINING

  • MX Gold Corp. confirmed being on track for plant expansion on its Magistral tailings project in Durango. Although on a non-43-101 complaint basis, the company estimates 1.2 M tonnes @ 2.06 g/t Au, 3.9 g/t Ag, a recovery rate of 76% Au, 45% Ag at a production rate of 30 K tonnes per year, and a life of project of 3.5 years.
  • Mexus Gold US. Along with JV partner MarMar Holdings announced the production of the first dore from its Santa Elena mine in Sonora (not to mistake with First Majestic’s Santa Elena mine, also in Sonora). The ore currently being placed on the heaps averages 2 g/t Au, with an expected recovery rate of 76%. The goal is to bring production to 10,00 tonnes per day (tpd).
  • United States Antimony Corp. reported successful production of antimony tri-sulfide per military MIL-A-a59D specification. Additional equipment is being installed to enter the market. SEMARNAT is expected to approve the cyanide circuit at the Puerto Blanco mill in Guanajuato for Los Juarez property (Queretaro) within 30 days. Powder magazines are being built at Soyatal (Queretaro) and a reopening a road at Guadalupe (Zacatecas).
  • MX Gold Corp. performed metallurgical tests on samples from backhoe pits at its tailings Magistral project in Durango. The aim of the test was to confirm the results obtained by previous studies. Gold recoveries at the Met-Solve Lab in Surrey, BC, Canada, ranged from 72.4% to 89.9%, silver from 22.7% to 64.9% and copper form 14.9% to 54.4%.
  • Impact Silver Corp. disclosed assay results from a drilling on the El Paso vein, at its Zacualpan property in Estado de Mexico (Mexico State). The hole intersected 3.38 m (TW) @ 834 g/t Ag. Including 1.26 m @ 1,448 g/t Ag. A new vein was encountered further down hole, with 1.3 m of core length @ 199 g/t Ag. Other drill holes intersected 1.4 m @ 122 g/t Ag; 1.6 m @ 113 g/t Ag on El Paso vein, and a further down hole 1.58 m core length intercept @ 240 g/t Ag. The El Paso vein passes less than one kilometer from Impact’s Guadalupe mill, and has been traced on the surface for 2.1 Km from El Paso adit, with widths ranging up to 13 m in the El Capulin adit. Better access on the San Felipe workings is to be completed in order to prepare underground drill stations.
  • Starcore International Mines Ltd. reported financial results for the first quarter ended July 31, 2017. During the period 3.7 K Oz Au, 15.2 K Oz Ag were produced by milling 69.8 K tonnes of ore @ 1.97 g/t Au, 12.6 g/t Ag, with recoveries of 85.0% Au, 51.2% Ag at a cash cost of US$1,052 per gold equivalent ounce. Cash and short-term investment of CAD$7.4 M at the end of the period (San Martin mine, Queretaro).

ON FINANCING

  • Silver One Resources Inc. is to conduct a non-brokered private placement aiming to raise gross proceeds of up to $4 M (Peñasco Quemado, Sonora).
  • Minera Alamos Inc. has received approval for OTCQB listing in the United States (La Fortuna, Durango).
  • Southern Silver Exploration Corp. extended the final closing of its previously announced brokered private placement until September 29, 2017. In total, the company has closed two tranches for total gross proceeds of $3 M (Cerro Las Minitas, Durango).
  • Defiance Silver Corp. announced the closing of the first tranche of $1.25 M of a non-brokered private placement (San Acacio, Zacatecas).
  • Leagold Inc. commenced trading on the OTCQX® Best Market in the United States, on September 15th, 2017 (Los Filos, Guerrero).

ON RESOURCES AND DEVELOPMENT

  • Silver Bull Resources, Inc. released further assay results from channel sampling at its Sierra Mojada project in Coahuila. The channel sampling was continuous over the strike length of an east-west trending high angle structure on old mine workings, with the structure 2 to 3 meters in width in places. The 117 sample program results highlights a zone of sulfide mineralization 160 m below the surface with 94.5 m @ 9.7% Zn, 124 g/t Ag, 1.6% Pb, 0.46% Cu; including 31.5 m @ 22.4% Zn, 134 g/t Ag, 2.0% Pb, 0.2% Cu; 9.0 m @ 10.2% Zn, 21 g/t Ag; 10.5 m @ 432 g/t Ag, 1.1% Zn, 1.2% Cu (Note of editor for clarity.- The samples were not collected across mineralized widths).
  • Capstone mining Corp. announced drill results of step-out drilling at its Cozamin mine in Zacatecas. Four holes have been completed near the southern limit of Capstone’s concessions with Endeavour’s concessions (see recent deal details between both companies below), with Highlighted drill intercepts of (estimated true width, “TW”) 14.4 m @ 2.2% Cu, including 6.3 m @ 4.4% Cu; 15.0 m @ 1.0% Cu, 0.4% Zn, 0.1% Pb, 19 g/t Ag; 4.6 m @ 3.0% Cu, 0.5% Zn, nil Pb, 54 g/t Ag. This zone is almost 600 m along strike from Cozamin’s current indicated mineral resource.
  • Americas Silver Corp. informed on the Development of the San Rafael project, part of its Cosalá operations in Sinaloa. Development to the southern lobe of the Main Zone began in January, and ore is now mined from two development headings, with two levels being prepared for production. Ore from three additional headings will be added to the stockpile within the next week. The primary ramp to the bulk of the deposit is progressing, with 480 m of advance needed to reach the bottom of the Main Zone. Process plant modifications are progressing, with initial concentrate production from San Rafael expected before the end of September 2017.
  • Oceanus Resources Corp. announced an updated mineral resource estimate for its El Tigre property in Sonora. The resource includes two open pit and two underground operations at the El Tigre and Fundadora veins. The open pit operations contain 430 K Oz Au, 14.3 M Oz Ag and 73 K Oz Au, 9.6 M Oz Ag as indicated and inferred resources respectively. The underground resources carry 6 K Oz Au, 1.3 M Oz Ag; 38 K Oz Au, 9.1 M Oz Ag as indicated and inferred resources respectively. The total hard rock resource is 25.9 M tonnes @ 0.52 g/t Au, 19g /t Ag, containing 436 K Oz Au, 15.7 M Oz Ag and 6.6 M tonnes @ 0.52 g/t Au, 89 g/t Ag as indicated and inferred resources respectively. The tailings resource is 939 K tonnes @ 0.27 g/t Au, 78 g/t Ag, containing 8 K Oz Au, 2.3 M Oz Ag; 1 K Oz Au, 254 K Oz Ag as indicated and inferred resources respectively.
  • Levon Resources Ltd. completed 5,655 m of core drilling in 18 holes at its Cordero project in Chihuahua. “The 2017 holes were drilled to test for near surface, higher gold grades within multiple rhyolite intrusives that make up the volcanic Cordero Felsic Dome Complex, and higher grade mineralization in contact breccia bodies that could improve a starter open pit configuration in the southwest part of the Resource.” Assays are pending.
  • Mexican Gold Corp. filed at SEDAR the technical report on the mineral resource estimate for its Las Minas project in Veracruz. The report states an inferred resource of 719 K Oz AuEq contained in 10.3 M tonnes @ 2.17 AuEq and total measured and indicated resources of 304 K Oz Au in 4.97 M tonnes @ 1.90 g/t AuEq.

ON DEALS AND CORPORATE ISSUES

  • Endeavour Silver Corp. and Capstone Mining Corp. entered into an agreement under which Endeavour has the right to explore and mine for precious metals above 2,000 m elevation (meters above sea level, or “mas”) on Capstone’s the Toro del Cobre claim, adjacent to Endeavour’s Calicanto concessions in Zacatecas. Endeavour granted Capstone the right to explore and mine for base metals below the elevation of 2,000 m (mas). The deal was done on the understanding of mineralization zonation in the district, with precious metals mineralization over 2,000 m elevation and base metals occurring below that mark (Note of editor.- This type of deal is not common in Mexico, and reveals a “Think outside of the box” attitude by both companies).
  • Magellan Gold Corp. and Rose Petroleum PLC signed a definitive and binding stock purchase agreement on Magellan’s acquisition of the mineral processing mill operation in San Dieguito de Arriba, Nayarit. The purchase total consideration is US$1.5 M, consisting of $1.0 M in cash and $500 K in Magellan stock, of which $100 K in cash has already been paid. Magellan has arranged $900 K in irrevocable bridge loans in support of its option to purchase the 200 tpd mill.
  • Advance Gold Corp. is to acquire a 100% interest in the Tabasqueña silver mine in Zacatecas. Upon receipt of regulatory approval, Advance will issue Hot Spring Mining, a Mexican based corporation, 1 M common shares. Hot Spring is to retain a 2.5% NSR, of which Advance has the right to buy 1.5% at a rate of CAD$500 K per 0.5%.
  • Dyna Resources Mexico, S.A. de C.V. announced that it has received a favorable ruling with the dismissal by a court in Veracruz of Goldgroup Resources Inc.’s amparo trial challenge to the US$48 M damages award previously granted in favor of Dyna.
  • Orex Minerals Inc. was made aware that Canasil Resources Inc. has been named in a lawsuit brought by Pan American Silver Corp. with the BC Supreme Court, regarding the mineral claims making up the Sandra Escobar project in Durango. Orex earned 55% ownership on the project from Canasil, interest that could be impacted if Pan American Silver’s claim is proven.

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 below, the ignimbrites of the Sierra Madre in Chihuahua, near Batopilas. Photo by Jorge Cirett.

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