Highlights on the First Week of May, 2018. Mining and Exploration News in Mexico

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By Jorge Cirett

During the 18th week of the year (April 30th to May 6th, 2018), at least 21 press releases were announced by companies working in Mexico, with news on the exploration of eight properties, eight more companies releasing Q1 2018 results, and Primero Mining extending its revolving credit facility. ON MEXICO ISSUES, production statistics for the mining sector on February 2018 were published. ON EXPLORATION, In Sonora, Azure updated on exploration efforts at its Oposura, Alacrán and Sara Alicia projects; Alamos Gold presented exploration plans on the Mulatos district; San Marco Resources obtained the Suanse property by lottery. In Coahuila, Discovery Metals disclosed underground channel sample results from its Puerto Rico property; Silver Bull acquired a 60 ha claim within its large land package in Sierra Mojada. In Veracruz, Mexican Gold released channel sampling results from the Changaro zone at its Las Minas project. ON MINING, Argonaut Gold, Santacruz Silver, Gold Resource, Alamos Gold, Golden Minerals, Leagold, Great Panther and Telson Mining presented Q1 2018 production reports. ON FINANCING, Primero Mining agreed on the extension of its revolving credit facility. ON RESOURCES AND DEVELOPMENT, Golden Minerals released drill results from its Santa Maria property in Chihuahua. Argonaut updated on exploration in properties in Guanajuato and Baja. Minera Alamos announced drilling plans on the now combined Santana/Los Verdes properties.  ON DEALS AND CORPORATE ISSUES, Endeavour Silver released its annual review and sustainability report. Advance Gold contracted a third party to assist with investors relations.

ON MEXICO ISSUES

  • The mining and metallurgic production in Mexico grew 4% in February, which is the best result since April 2016, although in a yearly basis a 1.3% decrement was recorded. During February, the production of lead (-34.6%), sulphur (-12.2%), silver (-11.3%), copper (-8.2%) and coke (-5.7%) decreased, while that of iron pellets (1.1%), fluorite (1.7%) zinc (4.6%), gold (5.8%), coal (18.8%) and gypsum (19.2%) showed an increment. Sonora was the leader in gold production during February, with 3,710 Kg (119,720 Oz), while Zacatecas  kept the title in silver with 171,903 Kg (5,526,806 Oz).

ON EXPLORATION

  • Azure Minerals Ltd. completed the mineral resource drill-out of the Oposura project, in Sonora. The program included 157 holes totaling 10,112 m (assays for 27 holes still awaited), confirming good height (width) and grade continuity of the horizontal mineralization. Metallurgical studies show 85.6% Zn and 84.0% Pb recoveries. The initial mineral resource estimate is expected in June 2018.
  • Azure Minerals Ltd. completed the stage 2 drilling program at its Sara Alicia Au-Co project in Sonora. Results awaited.
  • Azure Minerals Ltd. informed the operator of its Alacrán project in Sonora, Minera Teck, S.A., completed an 11 hole drill program in December 2017, with final results awaited. Teck has informed it will continue with the year 2 work program “comprising further geological, geochemical and geophysical surveys in the first half of 2018, which will be followed by more drilling in the second half of the year”.
  • Discovery Metals Corp. disclosed assay results from continuous underground channel sampling at its Puerto Rico project in Coahuila. Results on 100 samples out of 600 samples collected on the Zaragoza mine have been received. Select significant channel samples include: 2.1 m @ 822 g/t Ag, 2.1% Zn, 2.5% Pb, 0.7% Cu; 1.8 m @ 55 g/t Ag, 27.9% Zn, 2.9% Pb, 0.1% Cu; 3.3 m @ 175 g/t Ag, 2.1% Zn, 15.2% Pb, 0.2% Cu; 2.3 m @ 62 g/t Ag, 9.2% Zn, 6.5% Pb, 0.1% Cu; 1.3 m @ 75 g/t Ag, 16.8% Zn, 3.2% Pb, 0.1% Cu. Average manto grades 157 g/t Ag, 6.2% Zn, 5.5% Pb, 0.1% Cu.
  • Mexican Gold Corp. released channel sampling results from the La Perdida mine in the Changaro zone at its Las Minas project in Veracruz. At La Perdida adit, four 2.0 m samples returned 7.85 g/t Au, 3 g/t Ag, 0.14% Cu; 0.30 g/t Au, 1 g/t Ag, 0.05% Cu; 16.70 g/t Au, 12 g/t Ag, 0.49% Cu; 27.30 g/t Au, 12 g/t Ag, 0.17% Cu, averaging 8.0 m @ 13.04 g/t Au, 7 g/t Ag, 0.21% Cu.
  • Alamos Gold Inc. informed exploration in its 28,777 ha land package at Mulatos, Sonora, is to focus in 2018 outside the Mulatos mine, including the El Carricito, El Halcon, and El Jaspe areas. During the first quarter Alamos invested $4.5 M in exploration activities within the Mulatos district, including 14,792 m of diamond drilling and 1,059 m of RC drilling.
  • Silver Bull Resources Inc. acquired a 68 ha mineral license nine kilometers NW from its main Sierra Mojada deposit in Coahuila. The application “covers 13 historical mine shafts in the Palomas Negros area including a 120 meter long x 25 meter wide x 25 meter deep historical open pit”. Select sampling on the open pit returned up to 542 g/t Ag, 36.5% Zn, 9.3% Pb, 0.14% Cu on 2 m channel sampling.
  • San Marco Resources Inc. obtained the Suanse property in Sonora through the recent mineral concession lottery by the Mexican government. The property is located between two mineral concessions within Evrim’s LLano del Nogal porphyry copper moly play.

ON MINING

  • Argonaut Gold Inc. presented first quarter 2018 operating and financial results. At El Castillo in Durango, 4.72 M tonnes of waste were moved, 1.62 M tonnes of ore were mined (52 K tonnes per day, or tpd) @ 0.44 g/t Au, producing 8,657 Oz Au, 7,528 Oz Ag. At San Agustin in Durango, 356 K tonnes of waste were moved 1.72 M tonnes of ore mined (23 K tpd) @ 0.50 g/t Au, producing 15,824 Oz Au, 80,331 Oz Ag. Cash cost was $1,020 for El Castillo and $365 for San Agustín. At La Colorada in Sonora, 6.13 M tonnes of waste were moved, 1.1 tonnes of ore mined (80 K tpd) @ 0.43 g/t Au, producing 14,291 Oz Au, 57,767 Oz Ag at cash cost $726. Cash and cash equivalents of $21.3 M at the end of the period.
  • Santacruz Silver Mining Ltd. reported financial and operating results for Q4 2018. During the period 181 K tonnes were processed, producing 865.5 K Oz AgEq at cash cost $23.07 and AISC $27.56 per AgEq Oz.
  • Gold Resource Corp. reported first quarter 2018 production results. During the period the company produced from three different orebodies on its El Aguila property in Oaxaca. At Arista 130.8 K tonnes were milled @ 1.92 g/t Au, 106 g/t Ag, 0.39% Cu, 1.63% Pb, 4.41% Zn, with recoveries of 78% Au, 91% Ag, 75% Cu, 76% Pb, 83% Zn. At the El Aguila open pit, 5.1 K tonnes were milled @ 2.16 g/t Au, 45 g/t Ag, and recoveries of 84% Ag, 86% Ag. At Altagracia 3.2 k tonnes were milled @ 1.16 g/t Au, 182 g/t Ag, and recoveries of 60% Au, 82% Ag. Production amounted to 6,647 Oz Au, 425.9 K Oz Ag, 385 tonnes Cu, 1,615 tonnes Pb, 4,793 tonnes Zn. Cash cost was ($316) per AuEq Oz after by-product credits, and AISC $347 per precious metal gold equivalent ounce sold. Cash and cash equivalents at quarter end totaled $28.6 M.
  • Alamos Gold Inc. reported its financial results for the first quarter 2018, including figures from its Mexican operations. At Mulatos in Sonora, 2.2 M tonnes were mined and 2 M tonnes of waste moved. Average grade of 1.75 M tonnes stacked was 0.84 g/t Au. As for high grade, 30.4 k tonnes were milled @ 8.11 g/t Au, for the production of 46,000 Oz Au at cash cost $786 per OZ Au, and AISC $842 per Oz Au. At El Chanate in Sonora, 1 M tonnes of ore were mined @ 0.60 g/t Au, with recoveries of 71% Au, to produce 13,800 Oz Au.
  • Golden Minerals Co. provided business and financial results for the first quarter 2018. During the period Golden received $1 M from Electrum Global Holdings, LP. in exchange for an amendment to the Electrum farm-out agreement providing Electrum an additional 20% interest in the Celaya project. Also 4,800 m in 22 holes were drilled on the Santa Maria property in Chihuahua. Cash and cash equivalents of $2.7 M at the end of the period.
  • Leagold Mining Corp. reported Q1 2018 production. During the period 7.7 M tonnes were moved on the open pit at Los Filos, Guerrero, of which 2.0 M tonnes were from ore @ 0.57 g/t Au. From underground 101 k tonnes were mined @ 5.47 g/t Au. In total 1.6 M tonnes were processed @ 0.97 g/t Au to produce 51,003 Oz Au at cash cost $880 per Au Oz and AISC of 1,039 per Au Oz. Test mining at the Bermejal underground deposit is to begin in Q2 2018. Leagold’s goal is to raise quarterly production from 50 K to almost 70 K by the end of the year.
  • Great Panther Silver Ltd. presented first quarter 2018 financial results, including figures from its operations in Mexico (Topia, Durango; Guanajuato mine complex, Guanajuato). Consolidated production came from 96.9 K tonnes milled, to obtain 491 K Oz Ag, 5,831 Oz Au at cash cost $12.76 per AgEq Oz and AISC $16.16 per AgEq Oz. For 2018 14,000 m of underground drilling are planned at the Guanajuato mines, and 5,000 m of surface drilling and 5,000 of underground drilling in the San Ignacio mine (part of the mine complex). Cash and cash equivalents were $60.9 M at the end of the period.
  • Telson Mining Corp. informed on first quarter 2018 pre-production toll milling at its Tahuehueto property in Durango. During the period 9,503 tonnes of ore were milled @ 5.44 g/t Au, 62 g/t Ag, 4.5% Zn, 2.2% Pb, recovering 79.4% Au, 85.7% Pb, 84.4% Pb, 76.4% Zn to produce 360 tonnes of lead concentrate (50.2% Pb), 99.25 g/t Au, 1,185 g/t Ag, 12.2% Zn) and 713 tonnes of zinc concentrate (46.3% Zn, 7.41 g/t Au, 105 g/t Ag, 0.93% Pb).

ON FINANCING

  • Primero Mining Corp. agreed to the extension of its revolving credit facility and the related guarantee provided by Wheaton Precious Metals Corp., to May 15th, 2018 or the closing of the business combination with First Majestic Silver Corp. (San Dimas, Durango).

ON RESOURCES AND DEVELOPMENT

  • Golden Minerals Co. released results from the 2,400 m, 22-hole drilling program at its Santa Maria property in Chihuahua. Some of the highlighted true width (TW) results comprise: 0.6 m @ 593 g/t Ag, 0.79 g/t Au, 0.4% Pb+Zn; 0.8 m @ 183 g/t Ag, 0.33 g/t Au, 0.1% Pb+Zn; 2.5 m @ 415 g/t Ag, 0.29 g/t Au, 1.5% Pb+Zn; 3.8 m @ 213 g/t Ag, 0.47 g/t Au, 0.8% Pb+Zn; 1.2 m @ 200 g/t Ag, 0.22 g/t Au, 0.15% Pb+Zn; 3.5 m @ 310 g/t Ag, 0.77 g/t Au, 1.3% Pb+Zn; 1.3 m @ 1,322 g/t Ag, 2.06 g/t Au, 1.4% Pb+Zn; 0.9 m @ 148 g/t Ag, 2.0 g/t Au, 1.5% Pb+Zn; 6.5 m @ 1,094 g/t Ag, 3.64 g/t Au, 1.3% Pb+Zn. The mineralization comprised oxide, mixed and sulfide materials in different intersects.
  • Argonaut Gold Inc. informed the re-logging of drill core and the development of a geological model at Cerro del Gallo, in Guanajuato. On its San Antonio project in Baja California Sur, technical sessions were held with the Mexican Environmental Authority DGIRA in preparation of new future Environmental Assessment application submittal.
  • Minera Alamos Inc. released its plans for a drilling campaign at the now combined Santana/Los Verdes property in Sonora. The phase one is to include 20 holes in 3,000 m of drilling, focusing on the Nicho extensions and Nicho Norte, into the contiguous Los Verdes claims. Previous drilling at the Santana project outlined significant mineralization associated to hydrothermal breccias hosted by stocks and batholithic intrusions. Heap leaching tests are being conducted on the Nicho Norte zone.

ON DEALS AND CORPORATE ISSUES

  • Endeavour Silver Corp. released its annual review and sustainability report. Sections of the report include: Safety and Health, Our People, Community, Environment, Economic. In words of its CEO, Bradford Cooke: “..is intended to show that sustainability relies on the connectedness between people, communities and the environment” (La Colorada, Sonora, El Castillo, Durango).
  • Advance Gold Corp. engaged Nicosia Capital to assist on Investor Relations. “Advance will pay Nicosia a fee of $3,500 per month and issue 100,000 stock options at a price of $0.12 per share. The initial agreement with Nicosia has a term of two months to commence May.1st, 2018” (Tabasqueña, Zacatecas).

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, Very strong silicification and minor silicification on structures from a shallow epithermal system in Guanajuato. Picture by Jorge Cirett.

Explotación minera en el mar, opción o pesadilla

https://www.eleconomista.com.mx/opinion/Explotacion-minera-en-el-mar-opcion-o-pesadilla-20180504-0041.html

La explotación minera de fondos oceánicos será pronto una realidad. Sus impactos ambientales están siendo intensamente evaluados por instituciones académicas y agencias internacionales, mientras la ingeniería avanza lo suficiente para colocarla como opción viable y rentable, en muchos casos, superior a la minería en tierra. Crece la escasez de minerales metálicos y no metálicos en yacimientos terrestres accesibles y de costo aceptable, mientras el reciclaje es insuficiente y la demanda aumenta exponencialmente por la industria electrónica y la fabricación de baterías para vehículos eléctricos. Níquel, cobalto, tungsteno, platino, rodio, manganeso y otros metales son indispensables para nuevas tecnologías electrónicas, y el fósforo es insumo vital para la manufactura de fertilizantes esenciales en la agricultura. El impacto ambiental de actividades mineras en tierra llega a ser devastador en cuanto a ecosistemas y paisajes, deforestación, y contaminación de aguas, suelos y atmósfera.

Metalurgia en México registra su mejor nivel en 22 meses

http://www.elfinanciero.com.mx/economia/metalurgia-en-mexico-registra-su-mejor-nivel-en-22-meses

La producción minerometalúrgica del país creció 4 por ciento en febrero respecto a su comparación mensual y con base en cifras desestacionalizadas, lo que reflejó su mayor nivel desde abril de 2016, informó este lunes el Instituto Nacional de Estadística y Geografía (Inegi). La industria minerometalúrgica del país contabiliza las actividades de extracción, beneficio, fundición y afinación de minerales metálicos y no metálicos. En su variación anual, el índice de volumen físico minero metalúrgico registró una contracción de 1.3 por ciento durante el segundo mes de este año en comparación del mismo mes de 2017

DISCOVERY METALS RETURNS AN AVERAGE OF 157 G/T SILVER + 11.7% ZINC+LEAD IN MANTOS ACROSS TWO LEVELS AT THE HISTORIC ZARAGOSA MINE, PUERTO RICO PROJECT

nr-pr-apr-30-2018

April 30, 2018 – Discovery Metals Corp. (TSX-V: DSV) (“Discovery” or the “Company”) is pleased to announce the first batch of assays results from the detailed continuous underground channel sampling program at its flagship Puerto Rico project (“Puerto Rico” or “the Project”) in northern Coahuila State, Mexico. Results of the first 100 samples are presented in this release and are from the Zaragoza mine, one of three key historic mines on the Project. Results from the San Jose mine and Puerto Rico mine will be presented as results are received.

Azure Minerals Ltd.- QUARTERLY ACTIVITIES REPORT FOR PERIOD ENDED 31 MARCH 2018

180430-Quarterly-Report-March-2018

Oposura Project
• Oposura mineral resource drill-out completed with 157 holes totalling 10,112m, with assay results received for 130 holes
• Original drill program expanded by an additional 40 drill holes (3,000m) to enlarge
resource area and increase drill hole density
• Good height and grade continuity of horizontal mineralisation confirmed – favourable
for initial extraction by open pit followed by room and pillar underground mining
• Initial mineral resource estimate expected in June 2018
• Positive metallurgy significantly reduces processing and marketing risk:
 Zinc recovery of 85.6% achieved producing a 57.2% zinc concentrate grade
 Lead recovery of 84.0% achieved producing a 61.4% lead concentrate grade
 Full elemental assays confirm clean concentrates
• Scoping Study / Preliminary Economic Assessment progressing well and on track

Highlights on the Third Week of April, 2018. Mining and Exploration News in Mexico

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On the picture above, Very strong silicification and minor alunite on a shallow epithermal system in Guanajuato. Picture by Jorge Cirett.

By Jorge Cirett

During the 16th week of the year (April 16th to April 22nd, 2018), at least 20 press releases were announced by companies working in Mexico, of which two had information on exploration, five on first quarter production, three in financing, two on resources and development and seven in corporate issues. ON MEXICO ISSUES, No relevant news. ON EXPLORATION, In Jalisco, Evrim released impressive high-grade results from trenching at Cuale. In Veracruz, Mexican Gold released high grade samples from veins at Las Minas. ON MINING, McEwen, Fortuna Silver, Avino Silver, Telson and Excellon presented Q1 2018 production reports. ON FINANCING, Prospero Silver and Aura Silver respectively announced the opening and closing of financing rounds, while Excellon announced the exercise of warrants. ON RESOURCES AND DEVELOPMENT, SilverCrest released drill results from the Luigi vein at its Las Chispas property in Sonora. Levon Resources filed a PEA report with a new resource estimate on the Cordero project in Chihuahua.  ON DEALS AND CORPORATE ISSUES, Monarca Minerals continues work to solve community issues in Tejamen, Durango. Geologix Explorations Inc. is to change name to ValOro Resources Inc.. Advance Gold acquired the Venaditas property in Zacatecas. Argonaut Gold informed on the legal struggle that halted the explosives permit use on its La Colorada mine in Sonora. Goldplay Exploration optioned the San Marcial property in Sinaloa. Vangold Mining and Mexican Gold granted options to officers, directors and consultants.

ON MEXICO ISSUES

  • No Relevant News.

ON EXPLORATION

  • Evrim Resources Corp. announced results from trench sampling at its Cuale project in Jalisco. Trench 4 grades 13.61 g/t Au over 106.2 m, including 50.0 m grading 26.13 g/t Au, including 7.5 m @ 163.3 g/t Au. Trench 2 grades 2.94 g/t Au over 29.4 m, including 17.9 m @ 4.55 g/t Au. Gold results over 10 g/t have been re-assayed. “Metallic screen assays reported acceptable repeatability with excellent repeatability at the highest gold grades”. A second IP line defines a 1,200 m long by 50 to 120 m deep highly resistive ledge associated with strong silicification and minor anomalous gold at the surface.
  • Mexican Gold Corp. released initial sampling results from four veins on its Pueblo Nuevo concession, part of its Las Minas property in Veracruz. The veins are hosted in diorites with argillic alteration, occur as mesothermal quartz veins, 20 to 50 cm in width with sub-vertical dips and lack post-minerals deformation. The Tamiahua I vein assayed 90.82 g/t Au, 37 g/t Ag over 0.40 m, with the footwall and hanging wall returning 0.52 g/t Au, 1 g/t Ag over 1.0 m and 0.72 g/t Au, 1 g/t Ag over 0.80 m respectively. Nine samples at the Tamiahua II returned 2.05 to 22.82 g/t Au and 5 to 37 g/t Ag on an average width of 0.27 m (up to 0.50 m). At the Cajon vein a grab sample returned 32.2 g/t Au, 231 g/t Ag; while a 0.20 m chip sample assayed 3.53 g/t Au, 31 g/t Ag. At the Dos Rios vein, two 0.35 m and 0.18 m samples returned 3.86 g/t Au, 16 g/t Ag; 8.25 g/t Au, 59 g/t Ag respectively, while a 1.0 m  hanging wall channel sample returned 4.92 m g/t Au, 38 g/t Ag.

ON MINING

  • McEwen Mining Inc. reported consolidated production for Q1 2018, which includes figures from its Mexican operations. At El Gallo in Sinaloa, 12,217 AuEq Oz were produced during the period. Mining from the existing open pits will cease in Q2, while heap leach activities will continue until 2020, or as long as it remains economic.
  • Fortuna Silver Mines Inc. reported first quarter 2018 production, including figures from its Mexican operations. At San Jose in Oaxaca, 258 K tonnes were milled, at an average rate of 3,011 tonnes per day (tpd) @ 284 g/t Ag, 0.2 g/t Au, and a recovery of 92.8% Ag, 92.3% Au, to produce 2.18 M Oz Ag, 14,882 Oz Au.
  • Avino Silver & and Gold Mines Ltd. released first quarter 2018 production results from its Avino property in Durango. During the period 120.6 K tonnes were milled @ 56 g/t Ag, 0.58 g/t Au, 0.43% Cu, with recoveries of 81% Ag, 68% Au, 84% Cu, to produce 309.9 K Oz Ag, 2,065 Oz Au, 970 K Lb Cu.
  • Telson Mining Corp. presented first quarter 2018 results from its Campo Morado mine in Guerrero. During the period the mill processed 148.7 K tonnes (approximately 1,650 tpd) @ 3.65% Zn, 0.41% Cu, 0.90% Pb, 1.14 g/t Au, 108 g/t Ag, with recoveries of 70.4% Zn, 23.0% Cu, 37.9% Pb, 17.9% Au, 28.3% Ag in the elaboration of distinct Zn, Cu, Pb concentrates containing 3,824 tonnes Zn, 140.5 tonnes Cu, 508.7 tonnes Pb, 970.9 Oz Au, 146.8 K Oz Ag. Telson continues to ramp-up production to the 2,500 tpd plant capacity.
  • Excellon Resources Inc. presented first quarter 2018 production results from the Platosa mine, Durango. During the period 13,784 tonnes were mined, 18,885 tonnes milled @ 359 g/t Ag, 3.79% Pb, 6.43% Zn, with recoveries of 87.3% Ag, 81.2% Pb, 83.8% Zn, to produce 194.5 K Oz Ag, 1.27 M Lb Pb, 2.25 M Lb Zn.

ON FINANCING

  • Prospero Silver Corp. is to complete a non-brokered private placement intending to raise gross proceeds of up to $1 M (Petate, Hidalgo; Bermudez, Chihuahua).
  • Excellon Resources Inc. announced that 3.33 M warrants were exercised, for proceeds of C$2.17 M (Platosa, Durango).
  • Aura Silver Resources Inc. is undertaking a non brokered private placement to raise gross proceeds of up to $600 K (Aranzazu, Zacatecas).

ON RESOURCES AND DEVELOPMENT

  • SilverCrest Metals Inc. released drill results from the Luigi vein on the Las Chispas property in Sonora. The vein was discovered in mid-2017 and referred only as unnamed vein until further drilling delineated a prospective target. Relevant results comprise: 0.8 m (true width, or TW) @ 1.03 g/t Au, 151 g/t Ag; 4.1 m @ 1.71 g/t Au, 232 g/t Ag; 1.8 m @ 0.28 g/t Au, 221 g/t Ag; 1.4 m @ 13.22 g/t Au, 2,067 g/t Ag; 1.4 m @ 0.18 g/t Au, 172 g/t Ag; 1.6 m @ 3.41 g/t Au, 265 g/t Ag; 1.0 m @ 2.75 g/t Au; 231 g/t Ag. The Luigi vein high-grade footprint measures 300 m long by at least 75 m high, averaging 1.7 m in width @ 2.84 g/t Au, 417 g/t Ag. “The Phase III drill program also includes drilling several new and partially-drilled high-grade mineralized veins. An additional 15,000 to 20,000 metres of drilling are planned for Q3 2018”. The 672 ha Cuesta Blanca ranch was bought, with SilverCrest now owning two thirds of the surface rights on the Las Chispas property.
  • Levon Resources Ltd. filed a NI-43-101 technical report with a resource update and preliminary economic assessment (PEA) for the Cordero project in Chihuahua. The project envisages a 40 K tpd operation with a 29 year mine life on 417.5 M tonnes of mineralized material @ 46.5 g/t AgEq, to produce 231 M Oz Ag, 2,863 M Lb Zn, 1,992 M Lb Pb, 0.35 M Oz Au. The base case economic estimate is an after tax net present value of $438 M, using a 7.5% discount rate, and an after tax internal rate of return of 16.5%, with a payback period of 4.8 years.

ON DEALS AND CORPORATE ISSUES

  • Monarca Minerals Inc. presented a corporate update. At Tejamen, in Durango, 202 RC holes and 10 diamond holes have been re-logged to help in the design of a new drilling campaign. The company has involved the Federal, State and Municipal governments in its search of an agreement with the community regarding the surface rights. At San Jose, in Chihuahua, the LOI on the project was extended to July 2018. “Terms of the LOI call for payment of US$20,000 on execution of the LOI(paid), US$20,000 on execution of a definitive agreement, US$50,000 on the first anniversary of the definitive agreement and US$60,000 on the second anniversary of the definitive agreement. The owners retain a 2% NSR. One percent of the NSR can be purchased by Monarca for US$100,000. Back taxes on the property of US$390,000 will be paid over a period of time. Concession taxes per year are approximately US$46,000”.
  • Geologix Explorations Inc. announced its intention to change its name to ValOro Resources Inc., subject to approval by the TSX-V, as well a 10 to 1 consolidation on shares (Tepal, Michoacan).
  • Advance Gold Corp. announced the acquisition of the 2,365 ha Las Venaditas claim in Zacatecas, 11 km to the West of Advance’s Tabasqueña project, which is currently being drilled. “Upon receipt of regulatory approval, Advance will issue to Hot Spring Mining, a Mexican based corporation, 1,000,000 common shares which will be subject to a statutory four-month hold period, in exchange for which Hot Spring Mining will transfer a 100% interest in the Venaditas claims to Advance Mexico. Hot Spring Mining will retain a 2.5% NSR, of which Advance Mexico has the right to buy 1.5% at a rate of $500k CAD per 0.50%”. Advance will issue 800 K options to certain consultants and advisers.
  • Argonaut Gold Inc. reported that the court has postponed “the hearing pertaining to Argonaut’s explosive permit at its La Colorada mine (see press release dated April 12, 2018) to allow the Secretary of National Defense (“SEDENA”) to provide evidence requested by the court regarding the temporary suspension of the explosives permit at Argonaut’s La Colorada mine. It is expected that a ruling will be issued within 15 business days of the original hearing date (April 16, 2018), as required by law.” (La Colorada, Sonora).
  • Goldplay Exploration Ltd. entered into an option agreement with SSR Mining Inc. to acquire a 100% interest in the 1,250 ha San Marcial project in Sinaloa. San Marcial is a low sulfidation epithermal near surface high grade Ag, Zn Pb project with a NI-43-101 resource completed by Silvermex Resources Inc., with opportunity for resource expansion. The indicated resource holds 3.75 M tonnes @ 149 g/t Ag, 0.67% Zn, 0.36% Pb, hosting 18.0 M Oz Ag, 29.9 M Lb Zn, 55.3 M Lb Pb; and 3.07 M tonnes @ 44 g/t Ag, 0.51% Zn, 0.29% Pb holding 4.4 M Oz Ag, 19.5 M Lb Zn, 34.7 M Lb Pb as inferred resources. Goldplay has to pay SSR Mining an aggregate of $2.575 M in cash, issue an aggregate of 3.5 M common shares, incur in $3 M in exploration expenditures over a three year period and grant a NSR royalty (0.5% to 1.5%, based on a resource estimate). A NI-43-101 resource estimate has to be completed on or before the third anniversary of the agreement.
  • Vangold Mining Corp. granted an aggregate of 4.8 M stock options to directors, officers and consultants (Pinguico, Zacatecas).
  • Mexican Gold Corp. granted 174 K incentive stock options to directors and officers of the company.

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

Excellon Announces Q1 2018 Production Results

http://www.excellonresources.com/news/details/index.php?content_id=184

Toronto, Ontario – April 19, 2018 – Excellon Resources Inc. (TSX:EXN, EXN.WT and EXN.WT.A; OTC:EXLLF) (“Excellon” or the “Company”) is pleased to announce first quarter 2018 production results from the Platosa Mine in Durango, Mexico.

Highlights

  • Q1 2018 Production (compared to Q1 2017)
    • Silver equivalent (“AgEq”) production more than doubled to 482,079 AgEq oz
      (Q1 2017 – 205,314 AgEq oz)

Monarca Minerals Provides Corporate Update

MonarcaMinerals_160418

Toronto, Ontario- (Newsfile Corp. – April 16, 2018) – Monarca Minerals Inc. (TSXV: MMN) (“Monarca” or the “Company”) is pleased to provide an update on its recent activities.
Tejamen Project
Monarca has completed the re-logging of 202 reverse circulation drill holes and 10 core holes in San Augustin in the state of Durango. The purpose of the re-logging exercise is to design a new drill program once the surface rights have been secured.
Discussions regarding the surface rights at Tejamen are moving forward on a number of fronts. Carlos Espinosa, the President of Monarca, has met with municipal, state and federal officials, and recently Monarca engaged a Mexican consulting firm specialized in community relations in Mexico with strong track record resolving similar issues to those that Monarca is facing at Tejamen project

Highlights on the First Week of April, 2018. Mining and Exploration News in Mexico

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On the picture above, pervasive kaolinization of volcanic rocks in the vadose zone of an epithermal system in Guanajuato. Geologist Miguel Heredia for scale.

By Jorge Cirett

During the 14th week of the year (April 1st to April 8th, 2018), at least 12 press releases were announced by companies working in Mexico, of which three had information on exploration, one in mining, one in financing, five on resources and development and two in corporate issues. ON MEXICO ISSUES, No relevant news. ON EXPLORATION, In Sonora, Riverside informed on exploration of its Ariel copper project. In Sinaloa, Goldplay completed a geophysical survey at El Habal. In Durango, Southern Silver announced its exploration program for 2018 at Cerro Las Minitas. ON MINING, Torex Gold announced all access to its projects in Guerrero has been restored.  ON FINANCING, Palamina granted options to officers, directors and consultants.  ON RESOURCES AND DEVELOPMENT, Alio Gold released drill results on two more holes on its Ana Paula project in Guerrero. Telson Resources disclosed PEA figures for its Campo Morado project in Guerrero. Evrim announced a maiden resource on its Ermitaño project in Sonora. Americas Silver released drill results from the 120 zone of its Cosalá project in Sinaloa. Bacanora Lithium announced that a recent feasibility study demonstrated good economics for its Sonora project.  ON DEALS AND CORPORATE ISSUES, Evrim announced First Majestic commenced arbitration proceedings on its Ermitaño project in Sonora. Bacanora Lithium announced the termination of a “placing letter” with NextView New Energy Bull HongKong Limited, regarding funding for its Sonora lithium project.

ON MEXICO ISSUES

  • No Relevant News.

ON EXPLORATION

  • Goldplay Exploration Ltd. completed a ground CSMAT (Controlled source audio frequency magnetotellurics) and magnetics survey at its El Habal property in Sinaloa, delineating 15 new drill targets. Goldplay completed a 27-line survey consisting of 100 m line spacing and 409 total stations over the 1.5 km of mineralized known length at El Habal. “Results confirm anomalous zones previously identified by historical drilling results and nearby shallow historical underground workings”. Several resistive geophysical anomalies were identified that correlate with anomalous surface trenching results and structural trends mapped previously.
  • Riverside Resources Inc. identified through mapping altered porphyritic intrusive rocks in the western part of its Ariel porphyry copper project in Sonora. The hydrothermal alteration measures 2.8 km in length by up to 1.9 km in width.
  • Southern Silver Exploration Corp. announced that a 2018 budget totaling US$3 M has been approved by the joint venture partners for exploration work at the Cerro Las Minitas project in Durango. “The program comprises 13,000 metres of drilling in two phases which will target both the systematic resource expansion in the Area of the Cerro containing the existing Mineral Resource Estimate and continued surface sampling and reverse circulation drilling on new discoveries in the recently staked CLM West claim group.”

ON MINING

  • Torex Gold Resources. Reported that negotiations between community leaders have resulted in an end to the illegal blockades of the El Limon-Guajes mine complex, supporting infrastructure and the Media Luna project in Guerrero. “The official government-regulated process for selecting between the two competing unions, continues. Since midMarch, there have been two public hearings at the Federal Labour Board, regarding the timing of a union selection vote. It is Torex’s understanding that the public hearing stage of the process is now complete, and that the next stage is a decision as to when and where the vote will occur. As Torex has said since the beginning, the Company will work with whichever union the workers democratically select.” Cash reserves at the end of Q1 were US$124 million, including US$14 million set aside for reclamation obligations. Also during Q1 a US$9.3 million principal repayment was made to reduce the term loan under the debt facility to US$290.7 million.

ON FINANCING

  • Palamina Corp. granted 950 K stock options to certain officers, directors and consultants of the company under its stock options plan. The options granted at $0.39 per common share expire in five years for officers and directors and in three years for consultants (Santuario, Hidalgo).

ON RESOURCES AND DEVELOPMENT

  • Alio Gold Inc. released drill results for the last two holes at its Ana Paula project in Guerrero. The 3,800 m program targets the complex breccia extension below the proposed open pit. On the first hole a hydrothermal breccia south of the proposed pit returned 0.94 g/t Au over 44.2 m, while the complex breccia below assayed 1.91 g/t Au over 40.90 m. The second hole returned 0.90 g/t Au over 32.4 m on the hydrothermal breccia south of the proposed pit and 2.03 g/t Au over 48.2 m on the complex breccia below. The fourth and fifth holes of the program have been completed and the last hole is in progress.
  • Telson Mining Corp. informed a positive result of a 43-101 compliant independent preliminary economic assessment (PEA) on its Campo Morado project in Guerrero. The current resource contains five mineral volcanogenic massive sulfide zones (G9, El Largo, Naranjo, Reforma and El Rey) containing zinc, copper, silver, gold and lead. The 2017 mineral resource estimate using a 5.5% ZnEq cut-off holds 16.6 M tonnes @ 1.70 g/t Au, 123 g/t Ag, 0.80% Cu, 0.93% Pb, 4.01% Zn (or 8.68% ZnEq) as measured and indicated resources, and 988 K tonnes @ 1.32 g/t Au, 116 g/t Ag, 0.64% Cu, 0.92% Pb, 3.20% Zn (or 7.27% ZnEq)as inferred resources.
  • Evrim Resources Corp. announced a maiden resource was disclosed by its partner First Majestic Silver Corp. on its Ermitaño project in Sonora. The inferred resource was calculated on the Ermitaño West vein, holding 3.36 M tonnes @ 3.99 g/t Au, 68 g/t Ag (or 377 g/t AgEq), containing 432 K Oz Au, 7.38 M Oz Ag.
  • Americas Silver Corp. released results of step-out holes on its Cosalá operations in Sinaloa. Highlighted true width (TW) intervals comprise 4.94 m @ 33 g/t Ag, 7.2 g/t Au, 0.13% Cu; 41.68 m @ 148 g/t Ag, 0.25 g/t Au, 0.32% Cu; 26.24 m @ 181 g/t Ag, 0.11 g/t Au, 0.51% Cu; 12.32 m @ 84 g/t Ag, 0.17 g/t Au, 0.23% Cu. “The zone 120 deposit is characterized by steeply dipping parallel lenses of Ag-Cu-Au skarn mineralization developed in volcanically derived calcareous sediments adjacent to intermediate intrusive dykes and sills. Skarn mineralization is characterized by disseminated chalcopyrite and tetrahedrite….. Mineralization at area 120 has been found over an area greater than 500 meters in length, 300 meters in width and down to a depth of 550 meters. Individual lenses have widths of up to 60 meters.”
  • Bacanora Lithium plc. Informed a recently completed feasibility study (FS) demonstrated economics of US$1.25 billion NPV; 26.1% IRR; and life of mine gross operating costs of US$3,910/t Li2CO3 comparable to those of the low cost brine producers of South America. Design of both the roaster/kiln FEED and the crystalliser/evaporation/IX FEED has commenced. “The current FEED schedule is to have designs, cost estimates and process guarantee scopes completed in Q2 2018 with orders for long lead items being placed at the end of the FEED process. The current ­time table is based on commissioning and lithium carbonate production commencing in Q1 2020” Currently advance is being made on water licenses, natural gas supplies and land surface access.

ON DEALS AND CORPORATE ISSUES

  • Evrim Resources Corp. announced “that First Majestic has initiated arbitration proceedings in connection with its purported exercise of the option pursuant to which First Majestic can earn a 100% interest in the Ermitaño property, subject to the retention by Evrim of a 2% net smelter return royalty interest. It is expected that the arbitration will deal with the requirements under the option agreement for First Majestic to exercise the option and not the relative interests of the parties in the Ermitaño property.” (Ermitaño, Sonora).
  • Bacanora Lithium plc. “As previously announced, the Company entered into a binding placing letter (the “Placing Letter”) with NextView New Energy Bull HongKong Limited (“NextView”) in December 2017 and as announced on 28 February 2018, although the Company had fulfilled all of its obligations in respect of the Placing as of that ­me, NextView failed to forward the Placing proceeds to the Company, leaving it in default under the terms of the Placing Letter. In spite of repeated efforts on the part of the Company requesting that NextView remedy its continuing default, NextView has continued to fail to complete the Placing as contemplated under the Placing Letter. Accordingly, the Company has terminated the Placing Letter and has reserved its rights to pursue any available legal remedies against NextView.”

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, pervasive kaolinization of volcanic rocks in the vadose zone of an epithermal system in Guanajuato. Geologist Miguel Heredia as scale.

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Highlights on the Fourth Week of March, 2018. Mining and Exploration News in Mexico

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On the picture above, take geologists to a mining museum, and this is what you get. Geologists Ruben Padilla, Barry Quiroz and Miguel Heredia at El Oro Museum in Estado de Mexico. Photo by Jorge Cirett.

By Jorge Cirett

During the 12th week of the year (March 19th to March 25th, 2018), at least 16 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, a gold nugget weighing 850 grams was found in northern Sonora. ON EXPLORATION, In Sonora, Colibri has begun drilling at El Pilar project; while Azure updated work on its Oposura project releasing new high grade drill results. Kootenay has drilled six of seven holes on one target of its La Cigarra project, other targets to follow. ON MINING, three companies, Primero Mining, Excellon and Sierra Metals presented financial and or production results for the fourth quarter and/or full year 2017. Santacruz Silver completed expansion of milling capacity at Veta Grande in Zacatecas.  ON FINANCING, Evrim received $3 M from the exercise of warrants.  ON RESOURCES AND DEVELOPMENT, Americas Silver presented an updated resource on its San Felipe property in Sonora. Almaden provided an update on work being done on the feasibility study at the Ixtaca project in Puebla. ON DEALS AND CORPORATE ISSUES, Alio Gold is to acquire all shares outstanding of Rye Patch, a company with several properties in USA. Bacanora Minerals extended the timetable for re-domiciling by a few days. Sonoro executed an option agreement on a group of properties adjoining its Cerro Caliche property in Sonora.

ON MEXICO ISSUES

  • A gold nugget weighing 850 grams was found in La Cienega area, south of Pitiquito in Sonora. The nugget was discovered using a metal detector by a local gambusino. Northwest Sonora is known by the presence of orogenic gold style deposits, like La Herradura, Nochebuena, La Choya, San Francisco and El Chanate. This type of ore deposits has produced large gold nuggets, of up to 12 kg in weight, with the most famous specimens coming from the El Boludo, La Cienega and Tajitos gold placers.

ON EXPLORATION

  • Colibri Resource Corp. has begun phase 1 of its 2018 drilling program on its Pilar property in Sonora. The program envisages up to 30 holes to be drilled focusing on modelling and extending the known mineralization of the Main Zone to the northwest and southwest along trend. “To date, Colibri has defined an in-house resource of 700 K tonnes @ 1.9 g/t Au”.
  • Kootenay Silver Inc. informed on advances on the current drill program at its La Cigarra property in Chihuahua. Six holes have been completed, and one more is in progress at La Borracha zone, which is the extension of the structure that hosts La Cigarra resource, and drilling has now tested 1,000 m of strike length beyond the resource. Results will be disclosed once all assays have been received. The next drill target is the newly identified Nogalera gold zone, with 8 holes planned on anomalous mineralization over more than 1,000 m of length. Once Nogalera has been drilled, the 104-Vein on the southern part of La Cigarra resource is to be drill tested.
  • Azure Minerals Ltd. updated on work being done at its Oposura project in Sonora. Drilling along strike of an outcrop carrying up to 59.6% Pb+Zn on the West Zone intersected high grade mineralization over an area of 400 x 400 m. Some of the best combined Pb + Zn intercepts returned 2.4 m @ 15.5%. 7.4 m @ 15.9%, 2.8 m @ 19.0%, 3.7 m @ 15.6%, 3.5 m @ 13.2%, 4.6 m @ 15.0%. To date drilling in the West Zone has comprised 64 holes for 4,936 m, with assay results received for 26 drill holes.

ON MINING

  • Primero Mining Corp. reported financial and operating results for 4Q and full year 2017. Primero commenced a strategic review process that resulted in the sale of the Cerro del Gallo project (Guanajuato) in November 2017, and the entering into an arrangement agreement whereby First Majestic will acquire all issued and outstanding common shares of Primero. At San Dimas in Durango, 21,076 Oz Au and 1.32 M Oz Ag were produced during the fourth quarter. For full year 2017, San Dimas produced 111,376 Oz Au, 3.96 M Oz Ag. A strike at San Dimas in early 2017 stopped work for more than two months, significantly impacting yearly production levels.
  • Excellon Resources Inc. reported financial results for the fourth quarter and full year 2017. During the fourth quarter the Platosa mine in Durango produced 16.1 K tonnes, processing 18 K tonnes @ 424 g/t Ag, 3.8% Pb, 5.8% Zn, with recoveries of 90.3% Ag, 80.0% Pb, 82.2% Zn, to produce 206.4 K Oz Ag, 1.17 M Lb Pb, 1.67 M Lb Zn. For the year 57.2 K tonnes were produced, while milling 55.6 K tonnes @ 456 g/t Ag, 4.4% Pb, 5.7% Zn, with recoveries of 90.5% Ag, 82.1% Pb, 80.1% Zn, producing 668 K Oz Ag, 4.09 M Lb Pb, 4.60 M Lb Zn. During 2017 the optimization plan was completed at the Platosa mine, resulting in dry mining conditions that increased production and lowered the costs. Total cash cost per Ag Oz decreased to $10.38, with an AISC of $21.89. All in sustaining cost was $15.84 per Ag Oz for the fourth quarter and $21.89 per Ag Oz for the year.
  • Santacruz Silver Mining Ltd. informed that expansion of milling capacity at its Veta Grande project to 750 tpd (tonnes per day) has been completed. The mill is currently operating at 450 tpd, and full capacity operations are expected to be achieved early in the second quarter 2018. Santacruz now will focus in the consolidation of underground operations.
  • Sierra Metals Inc. reported fourth quarter and year end 2017 financial results, without separating figures for its operations in Mexico. Production at Bolivar is expected to reach 3,000 tpd in Q1 2018 and 3,500 tpd in the second half of 2018. An update in resources is expected in the coming months. At Cusi production is being ramped up to the 650 tpd Mal Paso mill capacity by Q2 2018. The installation of another mill is expected to take production to 1,200 tpd by 2019. At the end of the period the company had 23.9 M in cash and cash equivalents.

ON FINANCING

  • Evrim Resources Corp. received $3.06 M from the exercise of common share purchase warrants, representing 98% of the warrants issue dated December 16, 2015. As a result, Evrim’s current cash position approximates $5.5 M (Cerro Cascaron, Chihuahua).

ON RESOURCES AND DEVELOPMENT

  • Americas Silver Corp. provided an update on the mineral resource estimate at the San Felipe project in Sonora (optioned from Hochschild in early 2017). Of 342 holed drilled by four companies since 1998, 294 are within La Ventana, San Felipe, Transversales and Las Lamas deposits which host the current resource. The new resource contains 4,685 K tonnes @ 5.4% Zn, 2.5% Pb, 61 g/t Ag in the indicated category and 2,008 K tonnes @ 3.6% Zn, 1.4% Pb, 48 g/t Ag in the inferred category. These resources host 560 M Lb Zn, 256 M Lb Pb, 9.1 M Oz Ag; 158 M Lb Zn, 63 M Lb Pb, 3.1 M Oz Ag respectively.
  • Almaden Minerals Ltd. updated on work related to the feasibility study (FS) at the Ixtaca project in Puebla. Work underway includes a resource model update, metallurgy testwork, engineering design, optimization studies, work to move the Rock Creek processing plant to Ixtaca, construction planning, geotechnical site investigation and water management studies. Almaden is also preparing an environmental impact assessment study (Manifiesto de Impacto Ambiental, or MIA) for Ixtaca.

ON DEALS AND CORPORATE ISSUES

  • Alio Gold Inc. and Rye Patch Corp. entered on an arrangement under which Alio Gold (San Francisco, Sonora; Ana Paula, Guerrero) is to acquire all the outstanding shares of Rye Patch (Florida Canyon, Nevada; Lincoln Hill, Nevada). The offer values Rye Patch outstanding equity at C$128 M. The transaction is expected to close on or about May 25, 2018.
  • Bacanora Minerals Ltd. announced that the proposed timetable for the proposed Re-domicile has been changed to 26 March 2018.
  • Sonoro Metals Corp. executed a formal option agreement with a Tucson, Arizona resident to acquire a 100% interest in the 403.5 ha Rosario group of concessions, adjacent to its Cerro Caliche property in Sonora, thus increasing the land holdings of the project to 1,455 ha. The option agreement entails a total consideration to the vendor of US$1.6 M, payable in escalating cash installments over 72 months, and a 2% NSR which can be bought for US$1 M for each percentage point. The initial US$60 K was paid on execution. Total drilling in the two properties before 2008 is 10,118 m in 101 holes.

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