Union Issues

The Mining and Exploration News in Mexico; Highlights on the Fourth Week of January 2026

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By Jorge Cirett

During the 4th week of the year (January 19th to January 25th, 2026), companies working in Mexico released 43 press releases. Six companies informed on early-stage properties work, eight more presented quarterly reports and one informed on an illegal blockade. Eight companies presented news on financing rounds, one on trading on a new market, one on the halting of trading and one more on a favorable ranking. Six companies presented updates on advanced properties, while nine companies informed on deals and corporate issues. ON MEXICO ISSUES, no relevant news. ON EXPLORATION, in Sonora, Questcorp Mining and partner Riverside Resources released favorable channel sample results from La Unión;  Tocvan Ventures released drilling results from the North Block at its Gran Pilar project. In Chihuahua, Kingsmen Resources released drilling results from Las Coloradas; Mammoth Resources is working in planning and permitting a resource definition drilling campaign at Tenoriba. In Durango, Pinnacle Silver and Gold released underground sampling results from El Potrero. In Oaxaca, EV Resources is mobilizing a rig to Los Lirios. ON MINING, Luca Mining, Orla Mining, Gold Resource, Pan American Silver, GoGold Resources, Americas Gold and Silver, Gold Royalty and Avino Silver and Gold Mines presented quarterly reports. Gold Resource reported an illegal blockade at its Don David mine in Oaxaca. ON FINANCING, four companies informed on financing rounds: Canasil Resources (C$0.5 M), Apollo Silver (C$15 M), Kootenay Silver (C$16.5 M), and Pacifica Silver (C$23 M). Silver Spruce Resources corrected a previous offering note. Santacruz Silver Mining commenced trading on the Nasdaq Capital Market. Silverco Mining halted trading on the TSX. Guanajuato Silver and Luca Mining were named to the 2026 OTCQX Best 50. EV Resources received A$0.6 M from the sale of an Australian property. ON RESOURCES AND DEVELOPMENT, Kootenay Silver is to conduct a PEA on La Cigarra. Vizsla Silver updated on 2025 work at Panuco, and plans for 2026. Capitan Silver commenced a 60,000 m drilling campaign at Cruz de Plata. Mithril Silver and Gold released drilling results from Coplaquin. Alamos Gold presented drilling results from the PDA, Cerro Pelón and Halcón deposits in the Mulatos district. Silver Tiger Metals filed an updated PFS on the Stockwork zone and a PEA on the underground at El Tigre project. ON DEALS AND CORPORATE ISSUES, Bear Creek Mining informed on the incoming meeting of shareholders to resolve its arrangement with Highlander Silver. Mammoth Resources elected board directors at its AGM. Regency Silver optioned the La India concession near its Dios Padre project in Sonora. Silverco Mining is acquiring Nuevo Silver, owner of la Negra mine in Querétaro. Southern Empire Resources acquired the Pedro project in Durango from Enduro Metals. Radius Gold continues discussions with Pan American Silver to advance the Amalia project in Chihuahua. Silver Viper Minerals announced an appointment to the board.  ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • No Relevant News. 

ON EXPLORATION

  • Kingsmen Resources Corp. released results from three diamond drill holes on the Soledad structure at its Las Coloradas project in Chihuahua. Two of the holes intersected old workings, with the remaining hole intercepting 15.7 m of core length averaging 0.04 gpt Au, 46 gpt Ag, 9.9% Pb, 0.7% Zn (including 7.7 m @ 0.08 gpt Au, 89 gpt Ag, 1.8% Pb, 1.2% Zn, which includes 0.60 m @ 0.867 gpt Au, 848 gpt Ag, 18.2% Pb, 11.7% Zn). “The geological sequence consists of variably sheared and interbedded arenite and lutite…. Alteration comprises green chlorite-epidote-nontronite and sericite with pyrite-calcite veinlets, sphalerite-(galena) veinlets, grey to white bleaching +/- disseminated pyrite (mm-cm) size.
  • Mammoth Resources Corp. is advancing steps towards the planning and permitting to complete a resource definition drill program at its Tenoriba project in Chihuahua. The company also intends to proceed with studies to confirm potential gold-silver recoveries from a coarser fraction heap leach metallurgical test and to define high-grade areas to source material for a pilot plant operation.
  • EV Resources Ltd. announced the mobilization of drilling equipment to its Los Lirios antimony project in Oaxaca. The 1,500-2,000 m drill program targets high-grade Sb mineralization beneath historical workings along the Lirios fault zone, testing for both veins and carbonate replacement targets on 900 m of the 9 km long system.
  • Pinnacle Silver and Gold Corp. released underground sampling results from the Estrella vein at its El Potrero project in Durango. Channel sampling identified two mineralized zones within the 42 m long workings, one of 5.49 gpt Au, 48 gpt Ag across 0.72 m and another yielding 1.87 gpt Au, 51 gpt Ag, averaging 1.1 m in width. The identification of high-grade Au-Ag mineralization at La Estrella is significant, as it lies 500 m from the main Dos de Mayo structure and is topographically 300 to 400 m above, with “… brecciated, lattice bladed and banded textures”. 
  • Questcorp Mining Corp. and partner Riverside Resources Inc. reported results from channel sampling at La Unión, in Sonora. A 30 m continuous channel sample oblique to strike along the decline wall at La Unión mine averaged 20 gpt Au, 226 gpt Ag. The companies continue to forward the CRD and sediment hosted mineralization models for the property.
  • Tocvan Ventures Corp. released drilling results from its maiden (reverse circulation?) drill program on the North block at its Gran Pilar project in Sonora, five kilometers north of the South Block/Main Zone. Highlighted results from five drill holes comprise 7.64 m @ 23 gpt Ag (including 1.53 m @ 92 gpt Ag); 7.63 m @ 18.8 gpt Ag, 0.1% Zn; 10.71 m @ 0.3% Zn; 3.06 m @ 20 gpt Ag, 0.5% Pb, 0.3% Zn. Other elements were as high as 0.13% Cu, 170 ppm As, 276 ppm Sb.

ON MINING

  • Luca Mining Corp. provided its production report for Q4 2025, and achieved its revised full-year 2025 production guidance. During 2025 Campo Morado in Guerrero produced 8,735 Oz Au, 1 M Oz Ag, 4,921 tonnes Pb, 38,740 tonnes Zn, 8,895 tonnes Cu, while Tahuehueto in Durango produced 17,410 Oz Au, 316.1 K Oz Ag, 4,000 tonnes Pb, 6,472 tonnes Zn, 1,185 tonnes Cu, for a consolidated production of 26,144 Oz Au, 1.33 M Oz Ag, 8,921 tonne Pb, 45,212 tonnes Zn, 10,081 tonnes Cu. Payable production ranged between 70 and 82% of metals. During the quarter 5,836 m of drilling were completed, for a total of 22,855 m in the year, with an investment of US$3.8 M. The company’s cash position at the end of the period was US$25.1 M. 
  • Orla Mining Ltd. provided an operational update for the fourth quarter and year 2025. The company produced a total of 95,405 Oz Au in the quarter and 300,620 Oz Au in the year from its operations in Mexico and the US. At Camino Rojo in Zacatecas, 1.86 M tonnes of ore were stacked grading 0.47 gpt Au to produce 19,587 Oz Au during the quarter, and stacked 8.94 M tonnes of ore grading 0.54 gpt Au to produce 96,764 Oz Au in the year.
  • Gold Resource Corp. announced preliminary fourth quarter production from its Don David mine in Oaxaca. During the period 85.9 K tonnes were milled at a rate of 1,305 tpd, grading 0.96 gpt Au, 298 gpt Au, 0.16% Cu, 0.58% Pb, 1.22% Zn, to produce 1,993 Oz Au, 687.5 K Oz Ag, 87 tonnes Cu, 306 tonnes Pb, 750 tonnes Zn. “During the quarter, the Company’s production profile has transitioned into more of a silver producer, accounting for about 80% of its revenue….. a total gold equivalent (AuEq) ounces of 10,413”. For the full year, the company produced 23,125 Oz AuEq. 
  • Pan American Silver Corp. presented preliminary 2025 results, with a total of 22.8 M Oz Ag, 742,200 Oz Au consolidated production. In Mexico the company produced during the fourth quarter 1.61 M Oz Ag, 1,100 Oz Au at La Colorada (Zacatecas), 1.91 M Oz Ag, 4,800 Oz Au at Juanicipio (Zacatecas), 0.11 M Oz Ag, 5,400 Oz Au at Dolores (Chihuahua). For the year production was 6.02 M Oz Ag, 4,600 Oz Au at La Colorada, 2.49 M Oz Ag, 6,700 Oz Au at Juanicipio, 5.4 M Oz Ag, 37,600 Oz Au at Dolores, with 61% of Ag and 6.5% Au consolidated production coming from Mexico. Guidance for 2026 is 25-27 M Oz Ag, 700,000-750,000 Oz Au, with a budgeted US$55 M on brownfield exploration, US$ 55 M on project related exploration and US$-22-25 M on regional exploration in Brazil, Mexico, Canada and Chile.
  • Americas Gold and Silver Corp. had consolidated production of 2.65 M Oz Ag in 2025. At Cosalá, in Sinaloa, 463 K Oz Ag were produced in the quarter, for a total of 1.19 M Oz Ag during the year. The rest of the production was from its USA operations.
  • GoGold Resources Inc. reported production for the quarter ended December 31, 2025. At its Parral operations in Chihuahua, the company produced 205.1 K Oz Ag, 2,914 Oz Au, 96 tonnes Cu, 150 tonnes Zn, or 456.2 K Oz AgEq.
  • Gold Royalty Corp. released preliminary fourth quarter 2025 results. Total revenue, land agreement proceeds and interest was US$5.2 M (revenue of US$4.2 M), or 1,255 Oz AuEq. For 2025, total revenue, land agreement and proceeds and interest added up to US$17.7 M (revenue of US$13.9 M), or 5,173 Oz AuEq (royalty on Cosalá, Sinaloa).
  • Gold Resource Corp. announced that an illegal blockade is underway at its mine in Oaxaca. Employees of terminated contractors on Union membership affiliation grounds established an illegal mine-access blockade. “This dispute is between the union and four contractors who were previously affiliated with the union. This is not a dispute between the Company and the union nor between the Company and the four contractors” (Don David, Oaxaca).
  • Avino Silver & Gold Mines Ltd. reported full year 2025 production of 1.16 M Oz Ag, 7,621 Oz Au, 5.67 M Lb Cu, or 2.6 M Oz AgEq. During the year 724,940 K tonnes were processed at Avino, in Durango, averaging 0.44 gpt Au, 56 gpt Ag, 0.42% Cu, recovering 73% Au, 84% Ag, 84% Cu, to produce 7,544 Oz Au, 1.1 M Oz Ag, 5.67 M Lb Cu (or 2.55 M Oz AgEq). At La Preciosa, 19 kilometers from Avino, 12 K tonnes were processed, averaging 0.32 gpt Au, 191 gpt Ag, recovering 62% Au, 66% Ag, to produce 77 Oz Au, 48.2 K Oz Ag (or 54.9 K Oz AgEq). The company commenced extraction, haulage and processing of mineralized development material from La Preciosa during the fourth quarter 2025. Avino Silver had US$100 M in cash at the end of 2025.  

ON FINANCING

  • Canasil Resources Inc. announced a private placement for a total of C$500 K in gross proceeds. Insiders of the Company subscribed for a total of 2.5 M shares, which constitutes a related party transaction  (Nora, Durango).
  • Silver Spruce Resources Inc. corrected a previous press-release that stated 976 K units offered, to 9.76 M units (Pinos, Chihuahua).
  • Santacruz Silver Mining Ltd. has commenced trading on the Nasdaq Capital Market. (Zimapán, Hidalgo).
  • Silverco Mining Ltd. announced the halting of its common shares on January 21, 2026, at the request of the TSX Venture Exchange to facilitate the review of the binding letter with Nuevo Silver Inc. (Cusi, Chihuahua).
  • Apollo Silver Corp. closed the final tranche of its previously announced non-brokered private placement for aggregate gross proceeds of C$15 M. Eric Sprott, through 2176423 Ontario Ltd.  participated with C$12.5 M, taking its stake in the company to 10.3% of outstanding shares on a non-diluted basis and 15.8% on a partially diluted basis, assuming the exercise of such warrants (Cinco de Mayo, Chihuahua).
  • Kootenay Silver Inc. announced an engagement letter with Red Cloud Securities Inc. as lead underwriter pursuant to which the underwriters have agreed to purchase shares of the company on a bought deal basis in a private placement for C$10 M in gross proceeds. The underwriters have the option to buy shares at the same price for gross proceeds of C$1.5 M before the closing of the placement (Columba, Chihuahua).
  • Guanajuato Silver Co. has been named to the 2026 OTCQX Best 50, a ranking of top performing companies traded on the OTCQX Best Market last year (El Cubo, Guanajuato).
  • Kootenay Silver Inc. increased the size of its previously announced “bought deal”  private placement from C$10 M to C$16.5 M in gross proceeds. The underwriters have the option to buy shares for another C$1.5 M in gross proceeds.(undisclosed projects, Mexico).
  • Luca Mining Corp. has been named to the 2026 OTCQX Best 50,  a ranking of top performing companies traded on the OTCQX Best Market last year (Campo Morado, Guerrero).
  • EV Resources. confirmed the receipt of A$600 K in cash from the sale of a project in Australia. The funds are to be used in the upcoming drill program at Los Lirios antimony project in Oaxaca.
  • Pacifica Silver Corp. closed its previously announced upsized, private placement offering for aggregate gross proceeds of C$23 M (Claudia, Durango).

ON RESOURCES AND DEVELOPMENT

  • Kootenay Silver Inc. engaged  engineering firms Sacré-Davey Engineering Inc. and Canenco Consulting Corp. to conduct a preliminary economic assessment (PEA) on its La Cigarra project in Chihuahua. The pit constrained mineral resource totals 51.6 M Oz Ag in the measured and indicated categories in 15.7 M tonnes averaging 0.07 gpt Au, 102 gpt Ag, 0.16% Pb, 0.21% Zn and 11 M Oz Ag on the inferred category in 3.4 M tonnes averaging 0.06 gpt Au, 102 gpt Ag, 0.2% Pb, 0.19% Zn. 
  • Vizsla Silver Corp. informed that during 2025 the company published a feasibility study (FS) on the Panuco project in Sinaloa, with $1.8 B after-tax NPV. 11% IRR and a 7-month payback period, with annual production of 17.4 M Oz AgEq over 9.4 years, securing financing with over US$450 M in cash and advanced test mine operations to 700 m depth. For 2026, Vizsla plans to begin construction following receipt of environmental permits (expected mid-year), complete 60,000 m of drilling on the district, advance detailed engineering and contractor selection and continue exploration on newly acquired properties.
  • Capitan Silver Corp. commenced a 60,000 m drilling campaign of diamond and reverse circulation (RC) drilling for 2026 at its Cruz de Plata project in Durango. The company informed that during 2025 the company raised C$29 M, restarted drilling operations, the first since 2023, extending mineralization by 250 m, increased Capitan Hill resources to 525,000 Oz Au, bought the main royalty on the project for US$1 M, and acquired claims from Fresnillo, consolidating and increasing the land position by 85%. For 2026 Capitan Silver launched a drilling campaign, expanding from one RC rig to three core rigs and one RC rig, with focus on several targets including the 3.7 km Jesús María trend and infill drilling at Capitan Hill to upgrade resources. An airborne geophysical survey is planned, as well as mechanical trenching.
  • Mithril Silver and Gold Ltd. released drilling results from expansive resource drilling at Target 1 within the Copalquin project in Durango. Drilling extended 300 m west the mineralized structure and 300 m down dip on the Refugio 1 structure. Highlighted core length intercepts comprise 3.95 m @ 1.37 gpt Au, 22 gpt Ag; 3.05 m @ 1.68 gpt Au, 107 gpt Ag (including 0.5 m @ 9.6 gpt Au, 612 gpt Ag); 2.8 m @ 2.29 gpt Au, 60 gpt Ag; 4.4 m @ 2.18 gpt Au, 15 gpt Ag (including 0.5 m @ 15.5 gpt Au, 66 gpt Ag); 1.55 m @ 2.11 gpt Au, 6 gpt Ag; 1.35 m @ 21.94 gpt Au, 357 gpt Ag (including 0.5 m @ 57.65 gpt Au, 924 gpt Ag); 5.45 m @ 0.78 gpt Au, 36 gpt Ag.
  • Alamos Gold Inc. updated on drilling results within the Mulatos District in Sonora, where exploration has shifted from targeting oxides to higher grade sulfide mineralization. “A total of $20 million was spent on exploration in the Mulatos District in 2025, similar to spending in 2024. The near-mine and regional drilling program totalled 56,117 m in 170 holes. This included 13,779 m of surface exploration drilling in 58 holes at the GAP-Victor and PDA targets at PDA, and 21,394 m in 56 holes at Cerro Pelon. Regional exploration drilling totalled 20,944 m in 56 holes …” with the Halcon discovery being part of the latter program.  At Cerro Pelón, drill intersects comprise 23.85 m @ 5.60 gpt Au; 5.93 m TW @ 5.85 gpt Au; 15.15 m @ 6.58 gpt Au; 8.67 m TW @ 6.64 gpt Au; 14.10 m @ 4.28 gpt Au; 4.25 m @ 12.95 gpt Au; 7.20 m @ 6.13 gpt Au; 2.75 m @ 6.05 gpt Au. At PDA (Puerto del Aire) drill intersects comprise 8.97 m @ 13.64 gpt Au; 15.60 m @ 3.72 gpt Au; 15.61 m @ 4.27 gpt Au; 14.92 m @ 4.85 gpt Au; 6.92 m @ 8.79 gpt Au; 7.10 m @ 5.77 gpt Au; 2.91 m @ 15.00 gpt Au; 0.81 m @ 43.70 gpt Au. At Halcon drill intersects comprise 47.60 m @ 3.04 gpt Au (including 4.50 m @ 7.78 gpt Au; 3.75 m @ 13.41 gpt Au); 37.35 m @ 3.53 gpt Au (including 10.20 m @ 8.13 gpt Au); 31.50 m @ 3.46 gpt Au (including 6.00 m @ 5.56 gpt Au); 19.00 m @ 3.88 gpt Au (including 3.40 m @ 10.08 gpt Au).
  • Silver Tiger Metals Inc. filed two studies, a preliminary economic assessment (PEA) on the underground at El Tigre and an updated prefeasibility study (PFS) on the Stockwork Zone for its El Tigre project in Sonora. The PEA proposes a base-case Ag price of US$38 per Oz and of US$3,200 per Oz Au, with After-Tax (NPV 5%) of US$ 304 M and After-Tax IRR of 42.8% and a payback period of 2.6 years. The study envisages 15-year UG mine life with 3-year historical tailings processing  to recover 34 M Oz Ag, 130 K Oz Au (or 38 M Oz AgEq, or 453 K Oz AuEq), producing an average of 2.1 M Oz Ag, 8 K Oz Au per year. The updated PFS with the same base-case metal prices includes an After-Tax (NPV 5%) of US$456 M with an After-Tax IRR of 65.7% with a 1.4 years payback period, 10-year mine life recovering 9 M Oz Ag, 408 K Oz Au (or 43 M Oz AgEq, or 509 K Oz Au), producing an average of 4.8 M Oz AgEq or 56.5 K Oz AuEq. 

ON DEALS AND CORPORATE ISSUES

  • Bear Creek Mining Corp. filed its notice of meeting, management information circular and related documents with securities regulators in connection with the special meeting of shareholders of Bear Creek to approve the proposed plan of arrangement with Highlander Silver Corp. and the interest deferral agreements entered into between the company and each of Royal Gold Inc. and Equinox Gold Corp. The proxy voting deadline is February 17, 2026 (Mercedes, Sonora).
  • Mammoth Resources Corp. announced shareholders at its annual general meeting (AGM) elected Thomas Atkins, Paul O’Brien, Jose Antonio Berlanga Balderas, Edgardo Espinosa Velasco, Jose Antonio Berlanga Lopez, and Richard Simpson as directors and appointed Kresto GTA, Chartered Accountants as auditors of the company (Tenoriba, Chihuahua). 
  • Regency Silver Corp. entered into an agreement to option the 4,823 ha La India mining concession located 10 km to the north of its Dios Padre project in Sonora. The claim hosts Early cretaceous andesitic volcanic rocks that are proximal to late cretaceous plutonic rocks associated with Laramide age porphyries in the district. The deal involves an initial US$60 K payment and staged payment totalling US$580 K over five years , as well as to pay US$145 K in owed taxes. A payment of US$1 M is due upon the publication of a mineral resource estimate over 1 M Oz Au. The vendors are entitled to a 2% NSR, on which the company has the right to purchase half by paying US$1 M. 
  • Silverco Mining Ltd. entered into a binding letter to acquire Nuevo Silver Inc., which recently entered into a share purchase agreement to acquire 100% of the producing La Negra mine in Querétaro. Holders of Nuevo Silver shares will be issued 16.8 M Silverco shares, and upon completion former holders of Silverco shares will hold 34% of Silverco shares. Silverco will also assume US11 M in debt associated with La Negra mine, US$12.5 M in milestone payments due in Q1 2027 and US$5 M in contingent payments potentially due between Q1 2027 and Q1 2028. “La Negra is currently operating at approximately 55% capacity”.
  • Southern Empire Resources Corp. completed the acquisition of the 1,750 ha Pedro gold project in Durango, from Enduro Metals Corp. The company issued Enduro 2 M common shares, agreeing to a future milestone payment of US$2 M upon production commencement, with Enduro retaining a 2% NSR. The project area displays “hematite-stained, silica-rich ridges of angular chalcedony fragments and silicified sedimentary rocks within a coarse breccia” with values of up to 2.3 gpt Au”. Geology, alteration and geochemistry mapped at Pedro are indicative of a potential low-sulphidation epithermal vein system, with some indications of possible Carlin style mineralization. Previous drilling intercepted up to 15.2 m averaging 0.577 gpt Au. “Fortuna Mining Corp. (Fortuna) has informed Southern Empire that it has resumed its 3,500 m core drilling program at the Centauro Gold Project, located 100 km northwest of Pedro”. Fortuna acquired the option rights for Centauro from Southern Empire in 2025.
  • Radius Gold Inc. informed that between “2019 and 2022, Radius and joint venture partner Pan American Silver Corp. completed 67 drill holes for 23,058 meters of diamond drilling at the Amalia Project, in Chihuahua, with multiple targets remaining untested. “Pan American held the right to earn 65 % interest under an existing option agreement. As operator Pan American Silver suspended work on the property during merger negotiations with Yamana in 2022. Radius continues discussions with Pan American with the objective of agreeing a pathway forward for the Amalia … ” project.
  • Silver Viper Minerals Corp. announced the appointment of Mr. Rakesh Malhotra as chief financial officer (La Virginia, Sonora).

ON SOCIAL RESPONSIBILITY

  • No Relevant News. 

On the image below: Quartz veining cut by late specularite veins in volcanosedimentary rocks, HQ core. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the First Week of October 2024

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By Jorge Cirett                                             

During the 40th week of the year (September 30th to October 6th,2024), companies working in Mexico posted at least 12 press releases. One company informed on exploration advances on its property, one other company updated on mining operations, one company notified on the extension of a financing round, two companies granted stock options/deferred-share-units, two companies announced share consolidation programs, two companies reported drilling results on its advanced property/mine, another reported AGM results, one informed on appointments to the board and two more on their merger. ON MEXICO ISSUES, an illegal mining operation was terminated in Sonora. Vulcan Materials warned on the intensification of its legal dispute with the Mexican government. ON EXPLORATION, in Nayarit, Angel Wings Metals provided an exploration update on La Reyna project. ON MINING, Luca Mining updated on planned activities at its Campo Morado and Tahuehueto mines, in Guerrero and Durango respectively. ON RESOURCES AND DEVELOPMENT, Vizsla Silver reported drilling results from Panuco, in Sinaloa. Gatos Silver released drilling results from two areas of the Cerro Los Gatos mine in Chihuahua. ON DEALS AND CORPORATE ISSUES, Vizsla Silver presented results of its AGM. Apollo Silver made directors appointments. Coeur Mining and SilverCrest Metals announced their merger. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • An illegal gold mining operation was closed down in Sonora. The mining operation was being conducted without permits on La Cienega area in the Sonoran Desert, which is an historically active dry placer mining area. Eight persons were detained and diverse equipment sequestered.
  • Vulcan Materials warned that it is to intensify its legal dispute with the government of Mexico, under which the company demands the payment of US$1.5 billion.

ON EXPLORATION

  • Angel Wing Metals Inc. provided an exploration update on La Reyna project, in Nayarit. The exploration focus is on the El Polo-Dolorosa target area, where historic trench results include 21 m grading 5.01 gpt Au, 12.7 m grading 1.21 gpt Au and 15.52 m grading 0.92 gpt Au. “Principal prospects include the former El Polo open pit mine, and the Dolorosa, San Ramon, La Feña, and El Zorillo shallow workings. The Company intends on commencing a diamond drill program in Q4 of this year”. Exploration is focused on bulk tonnage size potential in altered and brecciated volcanic rocks with stockwork quartz veining. The first 2,500 m drill phase is to test five widely spaced prospects from near surface depths to 175 m.

ON MINING

  • Luca Mining Corp. updated on planned activities at its two mines in Mexico. At Campo Morado, in Guerrero, a mining contractor was hired to increase performance and exceed 2,000 tpd rates, improvements to metallurgy processes have been made and the first drilling program in over a decade is commencing. At Tahuehueto, in Durango, construction has been completed and commercial production is expected to be declared during Q4. A significant drilling campaign is to commence during the quarter. “Luca will commence repayments of its debt owed to Trafigura, from cashflow, in October 2024 under the terms of the restructured debt agreement”.

ON FINANCING

  • Aztec Minerals Corp. granted 1.57 M stock options to directors, management, and consultants of the company (Cervantes, Sonora).
  • GRSilver Mining Ltd. granted 97.5 K deferred share units (DSU) to non-executive directors for director’s fees to Q3 2024. eligible persons in accordance with the Omnibus Long-Term Incentive Plan. “Once vested, each DSU entitles the holder thereof to receive either one common share of the Company, the cash equivalent of one common share or a combination of cash and common shares, as determined by the Company, net of applicable withholdings” (Plomosas, Sinaloa).
  • Silver Spruce Resources Inc. proposed to consolidate its common shares on a 1:15 basis on its annual and special meeting on October 29, 2024 (Pino de Plata, Chihuahua).
  • Apollo Silver Corp. announced a non-brokered private placement for aggregate gross proceeds of up to C$10 M. Following the closing of the offering, the company intends to consolidated its issued and outstanding shares on a five to one basis. (Cinco de Mayo, Chihuahua).
  • Colibri Resource Corp. announced the extension of its non-brokered private placement to raise up to C$450 K, to close on or before November 3, 2024 (EP project, Sonora)

ON RESOURCES AND DEVELOPMENT

  • Vizsla Silver Corp. reported results from 11 holes targeting the Copala resource area at its Panuco project in Sinaloa. Highlighted true width intercepts comprise 2.88 m @ 0.45 gpt Au, 92 gpt Ag; 1.46 m @ 15.47 gpt Au, 1,935 gpt Ag; 0.55 m @ 6.26 gpt Au, 437 gpt Ag; 2.30 m @ 37.30 gpt Au, 2,851 gpt Ag; (including 1.05 m @ 73.10 gpt Au, 5,410 gpt Ag); 1.70 m @ 1.35 gpt Au, 238 gpt Ag; 5.80 m @ 14.85 gpt Au, 2,551, gpt Ag (including 0.46 m @ 146.50 gpt Au, 21,953 gpt Ag); 2.30 m @ 0.98 gpt Au, 79 gpt Ag; 4.15 m @ 3.29 gpt Au, 732 gpt Ag (including 1.37 m @ 7.56 gpt Au, 1,634 gpt Ag); 5.65 m @ 26.06 gpt Au, 3,007 gpt Ag (including 1.48 m @ 96.11 gpt Au, 10,869 gpt Ag); 0.65 m @ 1.99 gpt Au, 384 gpt Ag; 7.50 m @ 1.23 gpt Au, 222 gpt Ag; 4.90 m @ 1.06 gpt Au, 145 gpt Ag; 1.00 m @ 5.39 gpt Au, 874 gpt Ag; 0.90 m @ 12.05 gpt Au, 1,830 gpt Ag; 4.35 m @ 3.00 gpt Au, 781 gpt Ag (including 0.73 m @ 12.45 gpt Au, 2,990 gpt Ag). “Exploration and resource focused drilling at Copala has traced mineralization along ~1,770 metres of strike length and ~400 metres down dip”.
  • Gatos Silver Inc. updated on the drilling exploration programs in the 70%-owned Los Gatos district in Chihuahua. Positive results have been obtained on the Central Deeps target and the South-East Deeps zone at the Cerro Los Gatos mine, as well as key developments on the regional exploration program. Highlighted true width intercepts comprise 7.5 m @ 0.20 gpt Au, 101 gpt Ag, 0.17% Cu, 5.5% Pb, 11.1% Zn; 3.3 m @ 0.28 gpt Au, 153 gpt Ag, 0.08% Cu, 6.6% Pb, 17.5% Zn; 2.8 m @ 0.03 gpt Au, 40 gpt Ag, 0.22% Cu, 0.7% Pb, 3.0% Zn; 1.3 m @ 0.57 gpt Au, 151 gpt Ag, 0.09% Cu, 3.0% Pb, 3.8% Zn; 6.5 m @ 0.04 gpt Au, 47 gpt Ag, 0.26% Cu, 1.1% Pb, 2.4% Zn; 4.5 m @ 0.09 gpt Au, 88 gpt Ag, 0.52% Cu,1.8% Pb, 3.2% Zn; 7.8 m @ 0.17 gpt Au, 90 gpt Ag, 0.14% Cu, 4.9% Pb, 5.8% Zn; 4.4 m @ 0.20 gpt Au, 55 gpt Ag, 0.37% Cu, 3.4% Pb, 1.6% Zn, 2.8 m @ 0.07 gpt Au,122 gpt Ag, 0.56% Cu, 3.4% Pb, 9.5% Zn; 5.0 m 0.14 gpt Au, @ 126 gpt Ag, 0.35% Cu, 5.5% Pb, 15.8% Zn; 1.1 m @ 2.03 gpt Au. Drilling below the Central Zone has intercepted a new zone of mineralization, and the “latest results in the South-East Deeps zone show further extension potential to the south-east of the current mineral reserves in this area. Moreover, we continue to pursue the longer term potential across the broader Los Gatos district”.

ON DEALS AND CORPORATE ISSUES

  • Vizsla Silver Corp. held its annual general meeting, fixing the number of directors at seven persons, elected the directors for the ensuing year, re-appointed the auditor of the company and approved the company’s omnibus equity incentive compensation plan. (Panuco, Sinaloa).
  • Apollo Silver Corp. announced the appointment of Alex Tsakumis to its board of directors and of Amandip Singh as vice president, corporate development (Cinco de Mayo, Chihuahua).
  • Coeur Mining Inc. and SilverCrest Metals Inc. entered into a definitive agreement in which Coeur is to acquire all issued and outstanding shares of SilverCrest. All SilverCrest shareholders will receive 1.6022 Coeur common shares. The exchange ratio implies $11.34 per SilverCrest shares, representing an 18% premium and a total equity value of $1.7 billion based on SilverCrest’s shares outstanding. “Upon completion of the Transaction, existing Coeur stockholders and SilverCrest shareholders will own approximately 63% and 37% of the outstanding common stock of the combined company, respectively” (Palmarjo, Chihuahua; Las Chispas, Sonora).

ON SOCIAL RESPONSIBILITY

  • No Relevant News.

On the image below: Drilling under the scarp in Sonora. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the Third Week of September 2024

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By Jorge Cirett                                             

During the 38th week of the year (September 16th to September 22nd, 2024), companies working in Mexico posted at least 15 press releases. Three companies informed on exploration advances on its properties, one company reported quarterly results, three companies notified on financing rounds, two companies granted stock options, one paid a loan facility, one commenced a drilling program on an advanced property, another announced appointments to the board and one more notified of its AGM results. ON MEXICO ISSUES, the Supreme Court is to review the case on the US$55 M fund paid by Grupo Mexico to unionized miners on the sale of the Cananea mine. ON EXPLORATION, in Sonora, Minaurum Gold released drilling results from its Alamos project. In Chihuahua, Radius Gold reported drilling results from Plata Verde. In Durango, Mithril Silver and Gold published results from drilling at Coplaquin. ON MINING, Starcore International Mines reported quarterly results. ON FINANCING, Vizsla Silver completed a bought deal public offering for C$65 M. Heliostar Metals granted stock options. GR Silver is increasing it private placement offering to $2.4 M. Orex Minerals granted incentive options. Sierra Madre Gold and Silver closed a private placement for US$500 K. Guanajuato Silver repaid a US$7.5 M loan facility to OCIM Metals & Minerals. ON RESOURCES AND DEVELOPMENT, Heliostar Metals commenced a 5,000 m drilling program at Ana Paula. ON DEALS AND CORPORATE ISSUES, Orex Minerals announced board changes. Santacruz Mining reported on its AGM. ON SOCIAL RESPONSIBILITY, Alamos Gold contributed to a health program and Mithril Gold and Silver on community support work.

ON MEXICO ISSUES

  • The Supreme Court is to review on October 9th, 2024 the demand by workers of the Sindicato Nacional de Trabajadores Mineros, Metalúrgicos, Siderúrgicos y Similares de la República Méxicana (a miners Union) on the return of a US$55 M fund created in 2005 on the sale of the Cananea mine to Grupo Mexico. If successful, the Union and its leader Napoleón Gómez Urrutia would have to source the amount to the workers. At the time, the Union leader informed that the money was owned by the Union, and was not to be distributed among the workers.

ON EXPLORATION

  • Minaurum Gold Inc. released the results of the first five holes of the 2024 program intended to establish an initial mineral resource at its Alamos silver project in Sonora. These holes totaled 1,286 m on two fences across the Promontorio vein zone, which includes the Veta Grande, Veta del 100 and Veta Las Guijas veins. “The West Promontorio vein zone is an underexplored vein zone located 100 m west of the Veta del 100 that was intersected in the 2024 drill program. The Promontorio Sur is the faulted-off, down-dropped, and underexplored southern extension of the Las Guijas vein”. Highlighted core length intervals comprise 1.25 m @ 151 gpt Ag, 0.03 gpt Au, 0.91% Cu, 1.6% Pb, 0.6% Zn (or 309 gpt AgEq); 0.70 m @ 2,431 gpt Ag, 0.26 gpt Au, 1.29% Cu, 7.4% Pb, 6.1% Zn (or 2,976 gpt AgEq); 1.05 m @ 196 gpt Ag, 0.37 gpt Au, 0.47% Cu, 0.2% Pb, 1.9% Zn (or 342 gpt AgEq); 5.60 m @ 200 gpt Ag, 0.48 gpt Au, 0.35% Cu, 1.5% Pb, 1.6% Zn (or 368 gpt AgEq); 2.55 m @ 350 gpt Ag, 0.78 gpt Au, 0.52% Cu, 3.1% Pb, 2.2% Zn (or 621 gpt AgEq); 8.45 m @ 78 gpt Ag, 0.37 gpt Au, 0.24% Cu, 2.6% Pb, 4.1% Zn (including 1.75 m @ 211 gpt Ag, 0.61 gpt Au, 0.53% Cu, 7.4% Pb, 10.9% Zn).
  • Radius Gold Inc. reported final drill results by its partner Fresnillo plc for the Plata Verde silver project in Chihuahua. The drill program comprised 13 holes for a total of 2,400 m, intersecting several zones of low-grade Ag mineralization, but no zones of significant mineralization.
  • Mithril Silver and Gold Ltd. announced results from drilling at its Copalquin District project in Durango. Highlighted core length intervals comprise 33.00 m @ 31.8 gtp Au, 274 gpt Ag (including 7.00 m @ 144 gpt Au, 1,162 gpt Ag, which includes 2.00 m @ 495 gpt Au, 3,765 gpt Ag); 1.00 m @ 12.65 gpt Au, 13 gpt Ag; 2.45 m @ 0.87 gpt Au, 53 gpt Ag; 9.60 m @ 0.23 gpt Au, 7 gpt Ag. The company also completed a 70 square Km LIDAR survey covering the project area, identifying a number of previously unknown mine workings.

ON MINING

  • Starcore International Mines Ltd. reported results for Q1, ended July 31, 2024. At San Martin, in Queretaro, Starcore milled 49.5 K tonnes grading 1.92 gpt Au, 20 gpt Ag, recovering 85.2% Au, 56.9% Ag, to produce 2,600 Oz Au, 18.3 K Oz Ag (or 2.8 K Oz AuEq) at cash cost US$1,608 per Oz AuEq.

ON FINANCING

  • Vizsla Silver Corp. completed the previously announced bought deal public offering for aggregate gross proceeds of C$65 M. The offering was led by Canaccord Genuity as sole bookrunner on behalf of itself and a syndicate of underwriters, including CIBC Capital Markets, Ventum Financial Corp., Raymond James Ltd., Stifel Nicolaus Canada Inc., National Bank Financial Inc., and BMO Capital Market (Panuco, Sinaloa).
  • Heliostar Metals Ltd. granted 4.67 M stock options and 1.18 M restricted share units to directors, officers, employees and consultants. Heliostar also entered into two advisory agreements with TSCG Capital Group and 3L Capital Inc. for financial advisory services (Ana Paula, Guerrero).
  • GRSilver Mining Ltd. is increasing its private placement offering to $2.4 M in gross proceeds (Plomosas, Sinaloa).
  • Orex Minerals Inc.  granted 909 K incentive stock options to directors and officers. (Coneto, Durango).
  • Sierra Madre Gold and Silver Ltd. closed its previously announced non-brokered private placement for aggregate gross proceeds of US$500 K (La Guitarra, Estado de Mexico).
  • Guanajuato Silver Corp. announced the complete repayment of its US$7.5 M Ag and Au pre-payment facility to Swiss-based OCIM Metals & Mining S.A., leaving the gold loan credit facility with Ocean Partners UK Ltd. as the only loan outstanding. This “facility is repayable in equal fixed monthly installments of gold totalling approximately 338 troy ounces per month for a period of 30 months which commenced in June 2024. Notably, Guanajuato Silver averaged monthly production of over 1600 ounces of gold and over 137,000 ounces of silver during the first half of 2024” (El Cubo, Guanajuato).   

ON RESOURCES AND DEVELOPMENT

  • Heliostar Metals Ltd. commenced a 5,000 m diamond drill program at Ana Paula, in Guerrero. The 2,600 m seven holes Phase 1 program focus on extending the High Grade Panel and Parallel Panel to the west, testing also the downdip extension of the High Grade Panel. Phase 2 consists of eight holes totaling 2,400 m, targeting the eastern and western extensions of the High Grade Panel.

ON DEALS AND CORPORATE ISSUES

  • Orex Minerals Inc. announced the resignation of Ben Whiting as President, CEO and Director of the company, and of Art Freeze as director. Later during the week Orex announced the appointment of John Eren as CEO and member of the board, and the appointment of Chris Beltgens as a member of the board (Coneto, Durango).
  • Santacruz Silver Mining Ltd. reported that all matters were approved at the company’s AGM held on September 16, 2024 (Zimapan, Hidalgo).

ON SOCIAL RESPONSIBILITY

  • Alamos Gold Inc. announced a significant contribution to The Princess Margaret Cancer Foundation to create the new Alamos Gold Chair in Gastrointestinal Surgical Oncology.
  • Mithril Gold and Silver Ltd. stated that part of its ESG commitment includes “the municipal access road, connecting to the township of El Durazno 12 km east of the Copalquin District, with support for the municipal upgrade works scheduled for commencement in Q3 2024.

On the image below: Chloritized porphyritic diorite, HQ core. Picture by Jorge Cirett.

ArcelorMittal steelworks strike in Michoacán ends after 55 days

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After a grueling 55-day strike, nearly 3,000 workers at ArcelorMittal Mexico resumed work at the company’s steel plant in Lázaro Cárdenas, Michoacán, over the weekend.

An agreement brokered by the Labor and Social Welfare Ministry (STPS) led to the reactivation of the plant around midnight on Friday night, which is expected to positively impact related industries and the broader economy.

Workers from section 271 of the miners’ union had blocked the steel plant’s facilities….

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ArcelorMittal steelworks strike in Michoacán ends after 55 days

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

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By Jorge Cirett                                             

During the 28th week of the year (July 8th to July 14th, 2024), companies working in Mexico posted at least 25 press releases. One company informed on exploration advances on its property and nine companies provided operational results for Q2 2024. One company increased the size of a previous offering, one more was notified of its lack of compliance by the NYSE and one more established an at the market equity distribution program. Four companies released drilling results from their advanced properties, and one more completed a drilling program. Three companies announced management appointments, two the authorization for their merger and one provided information on payments to governments. ON MEXICO ISSUES, Mexico fell spectacularly on the Fraser’s ranking of mining competitiveness. Camimex pointed that exploration by the SGM just won’t work. Arcelor Mittal’s workers continue their illegal strike. ON EXPLORATION, In Sinaloa, Chesapeake Gold released drilling results on Lucy. ON MINING, Fortuna Mining, Endeavour Silver, Aura Minerals, Torex Gold, Gatos Silver, SilverCrest Metals, Orla Mining, GoGold Resources and Sierra Metals reported production results for Q2 2024. ON FINANCING, Golden Minerals announced it’s been notified by the NYSE American of its lack of compliance on three listing standards. Southern Silver Exploration increased its private placement to C$4.5 M. Kootenay Silver established an equity distribution program. ON RESOURCES AND DEVELOPMENT, Atacama Copper reported drilling results from Cristina. Silver Tiger Metals released results from PFS drilling at El Tigre. Vizsla Silver reported results from holes on the Copala resource area at its Panuco project. GoGold Resources updated on the FS for Los Ricos South. Xali Gold announced the completion of a drill program at El Oro Tailings. ON DEALS AND CORPORATE ISSUES, Bear Creek Mining, Luca Mining and Barksdale Resources announced appointments to the board. Argonaut Gold and Alamos Gold received clearance from authorities to complete their proposed arrangement. Fresnillo plc paid US$297.5 M dollars to Mexico during 2023 in taxes, royalties and concessions fees. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • Mexico fell 37 positions on the Fraser Institute index of mining competitiveness from 2022 to 2023, reflecting the difficulty to do business imposed in the new Mining Law.
  • Camimex (Cámara Minera de México) indicated that mining exploration by the government as stated by the new mining law is just not viable. According to the new mining law, the only player able to do exploration before an auction of mining concessions is the SGM (Servicio Geológico Mexicano), and that in 2022 the SGM had a budget of just US$2.4 million dollars, compared with the annual average in the last 12 years of US$633 million dollars invested by private mining companies.
  • Workers of Arcelor Mittal rejected a proposal by the company to end the more than a month and a half old illegal strike. The proposed agreement included more than US2,000 dollars per worker and 75% of the salaries not received during the strike, as well as an audit on the profits of the company for 2022 and 2023, to assess the correct application of the profit-sharing scheme in the law.  

ON EXPLORATION

  • Chesapeake Gold Corp. released results from the phase 2 drill program at Lucy, in Sinaloa. In total 939 m were drilled in 12 holes along the known mineralized corridor, 101 additional surface soil and rock samples were collected along the projection of the trend and 63 line-km of ground magnetics covering the entire property completed. Highlighted core length intervals comprise 24 m @ 1.43 gpt Au (including 9 m @ 2.29 gpt Au); 6 m @ 1.95 gpt Au; 6 m @ 5.21 gpt Au; 6 m @ 1.90 gpt Au; 20.5 m @ 1.75 gpt Au (including 12 m @ 2.82 gpt Au. The gold mineralized zone has been extended from 500 to 700 m of length, and the corridor remains open on strike and at depth. “… this expanded corridor continues to display retrograde quartz-calcite, iron oxides, sulphide veinlets and stockwork hosted within garnet and pyroxene skarn and hornfels with zones altered to actinolite and other silicates.”

ON MINING

  • Fortuna Mining Corp. reported production results for the second quarter of 2024, including figures from its Mexican operations. At San Jose, in Oaxaca, 176.2 K tonnes were milled at a rate of 1,980 tpd, grading 140 gpt Ag, 1.09 gpt Au, recovering 85.6% Ag, 85.5% Au, to produce 684.2 K Oz Ag, 5,269 Oz Au. “Management is currently evaluating its options of maintaining operations at the mine or putting the mine on care and maintenance, as Mineral Reserves are scheduled to be exhausted by year end.”
  • Endeavour Silver Corp. reported second quarter 2024 production of 1.31 M Oz Ag, 10,549 Oz Au (or 2.2 M Oz AgEq).  At Guanaceví in Durango, 112.9 K tonnes were processed at a rate of 1,241 tpd, grading 364 gpt Ag, 1.29 gpt Au, recovering 90.4% Ag, 90.4% Au, to produce 1.19 M Oz Ag, 4,243 Oz Au. At Bolañitos in Guanajuato, 106.1 K tonnes were processed at a rate of 1,166 tpd, grading 41 gpt Ag, 2.06 gpt Au, recovering 83.4% Ag, 89.6% Au, to recover 116.9 K Oz Ag, 6,306 Oz Au. “Local third-party feed continued to supplement Guanaceví mine production, totaling 15% of quarterly throughput. With current prices, management expects local third-party feed to remain above 10% of throughput going forward.”
  • Aura Minerals Inc. announced preliminary production results for Q2 2024, including figures from its Mexican operations. At Aranzazu, in Zacatecas, production was 6,175 Oz Au, 120.4 K Oz Ag, 8.93 M Lb Cu (or 24,692 Oz AuEq).
  • Torex Gold Resources Inc. reported Q2 2024 production at its Limón-Guajes mine in Guerrero. A total of 17.8 K tpd of ore were mined from open pits, 77.4 K tpd of waste were moved at a strip ratio of 4.3 and 2,145 tpd were mined from underground. Total plant throughput was 13,214 tpd, averaging 3.34 gpt Au, with a recovery of 90.5% Au, to produce 113,822 Oz Au in the period. “… the level of waste mined is expected to decline further through the balance of the year as the pits reach the end of their mine life mid-2025….”
  • Gatos Silver Inc. announced production results for the second quarter 2024. During the period 294.9 K tonnes were milled at a rate of 3,240 tpd, grading 0.29 gpt Au, 273 gpt Ag, 2.06% Pb, 4.55% Zn, recovering 48.8% Au, 88.9% Ag, 89.5% Pb, 64.6% Zn to produce 1,360 Oz Au, 2.30 M Oz Ag, 12.0 M Lb Pb, 19.1 M Lb Zn.
  • SilverCrest Metals Inc. provided interim operational results for the second quarter of 2024. During the period 100 K tonnes were mined, 110.6 K tonnes were milled at a rate of 1,216 tpd, averaging 4.36 gpt Au, 418 gpt Ag (or 765 gpt AgEq), recovering 98.6% Au, 98.3% Ag, to produce 15,303 Oz Au, 1.46 M Oz Ag (or 2.68 M Oz AgEq).
  • Orla Mining Ltd. released an interim operational update for the second quarter 2024. At the Camino Rojo Oxide mine 1.9 M tonnes were mined, 2.05 M tonnes of waste moved with a strip ratio of 1.08 and 1.93 M tonnes were stacked averaging 0.87 gpt Au to produce 33,206 Oz Au. At the end of the period Orla had cash of US$154.3 M and total debt of US$78.4 M, resulting in a net cash position of US$75.9 M.
  • GoGold Resources Inc. reported production for the quarter. At the Parral Tailing project, 2,436 Oz Au, 138.7 K Oz Ag, 148 tonnes Cu, 125 tonnes Zn were produced during the period ending June 30, 2024.
  • Sierra Metals Inc. reported second quarter 2024 production results. At Bolivar, in Chihuahua, 378.9 K tonnes were processed at a rate of 4,273 tpd, grading 0.38 gpt Au, 19.5 gpt Ag, 0.83% Cu, recovering 65.4% Au, 80.6% Ag, 89.8% Cu, to produce 3,005 Oz Au, 190 K Oz Ag, 6.15 M Lb Cu.

ON FINANCING

  • Golden Minerals Co. announced that the company has been notified by the NYSE American LLC that it was not in compliance with three of the continued listing standards. “The notification from the NYSE American has no immediate effect on the Company’s common stock or its business operations. The Company’s common stock will continue to be listed on the NYSE American under the symbol “AUMN” while it regains compliance with Sections 1003(a)(i), 1003(a)(ii) and 1003(a)(iii) of the Company Guide, subject to the Company’s compliance with other continued listing requirements” (Yoquivo, Chihuahua).
  • Southern Silver Exploration Corp. announced the increase of the previously announced $3.3 M private placement to $4.5 M (Cerro Las Minitas, Durango).
  • Kootenay Silver Inc. established an “at the market” equity distribution program, which will allow Kootenay to issue and sell to the public from time to time, at its discretion, common shares in the capital of Kootenay on the amount of up to C$5 M (Columba, Chihuahua).

ON RESOURCES AND DEVELOPMENT

  • Atacama Copper Corp. reported results from five holes of a 10,000 m drilling program at Cristina, in Chihuahua. Fifteen holes totalling 4,467 m of drilling of a 40-to-50-hole program have been reported. Highlighted true width intercepts comprise 20.50 m @ 1.56 gpt Au, 25 gpt Ag, 0.17% Cu, 0.3% Pb, 0.3% Zn (including 1.20 m @ 22.30 gpt Au, 184 gpt Ag, 1.42% Cu, 0.8% Pb, 0.9% Zn); 14.00 m @ 0.96 gpt Au, 39 gpt Ag, 0.13% Cu, 0.4% Pb, 0.7% Zn (including 2.90 m @ 2.78 gpt Au, 75 gpt Ag, 0.98% Cu, 0.7% Pb, 0.3% Zn); 20.00 m @ 0.43 gpt Au, 20 gpt Ag, 0.2% Pb; 0.6% Zn; 9.00 m @ 0.70 gpt Au, 33 gpt Ag, 0.15% Cu, 0.7% Pb, 2.1% Zn; 5.80 m @ 0.43 gpt Au, 12 gpt Ag, 0.1% Pb, 0.3% Zn. The goal of the program is to increase the size and the grade of the resource and demonstrate the underground potential at Cristina.
  • Silver Tiger Metals Inc. released results from the pre-feasibility study drilling program on El Tigre project in Sonora. Highlighted core length intervals comprise 18.20 m @ 0.53 gpt Au, 7 gpt Ag; 5.80 m @ 0.43 gpt Au, 328 gpt Ag (including 1.80 m @ 1.10 gpt Au, 1,041 gpt Ag); 56.80 m @ 0.62 gpt Au, 55 gpt Ag; 11.00 m @ 0.16 gpt Au, 128 gpt Ag; 72.00 m @ 0.62 gpt Au, 15 gpt Ag; 59.00 m @ 0.62 gpt Au, 20 gpt Ag; 11.00 m @ 1.18 gpt Au, 87 gpt Ag; 45.00 m @ 0.43 gpt Au, 11 gpt Ag. Silver Tiger aims to release a new mineral resource estimate by September 2024. This drilling program has extended mineralization “by 10 to 15%, to the footwall and hanging wall zones, as well as the higher-grade ‘Keel’ at PEA pit bottom associated with the El Tigre and SK Veins”, and converted a significant portion of inferred resources to the indicated category.
  • Vizsla Silver Corp. reported results from six holes targeting the Copala resource area at its Panuco project in Sinaloa. “The reported drilling, designed to infill near-surface Indicated Mineral Resources, continues to confirm high-grade continuity throughout Copala including new high-grade intercepts on the Copala 3 hanging-wall vein splay.” Highlighted true width intervals comprise 7.80 m @ 4.40 gpt Au, 788 gpt Ag (including 0.86 m @ 25.30 gpt Au, 5,010 gpt Ag); 5.25 m @ 6.58 gpt Au, 547 gpt Ag; 3.50 m @ 7.83 gpt Au, 1,617 gpt Ag; 2.68 m @ 7.47 gpt Au, 1,831 gpt Ag; 7.00 m @ 9.51 gpt Au, 1,898 gpt Ag (including 1.29 m @ 18.95 gpt Au, 3,430 gpt Ag).
  • GoGold Resources Inc. is advancing the definitive feasibility study at Los Ricos South project in Jalisco. The study to be released in September focus “… towards a larger underground mine with a much smaller open pit. We have applied for an underground permit as in our view this will be more likely to be obtained on a timely basis. We see the project having more than 10 years of underground mine life, followed by a smaller open pit than originally planned in our preliminary economic assessment. The need for an open pit permit at Los Ricos South has been effectively pushed into the future more than a decade from now.”
  • Xali Gold Corp. announced that the drilling program for metallurgical test work on the T Tailings project at El Oro, in Estado de Mexico, has been completed. The program was expanded from the 20 holes planned to 34 holes, averaging 20 m in depth. In a technical report from 2014, the tailings have an inferred resource of 1.27 M tonnes averaging 2.94 gpt Au, 75 gpt Ag, containing 119,900 Oz Au, 3.06 M Oz Ag.

ON DEALS AND CORPORATE ISSUES

  • Bear Creek Mining Corp. announced the appointment of Mr. Donald Mc Iver as Vice President Exploration and Geology. The company drew US$1.12 M from the Sandstorm Gold Ltd. Promissory Note. “As of the date of this news release, an aggregate of US$1,875,000 has been drawn down under the Additional Credit for a total principal amount of US$20,892,612.35 outstanding under the Sandstorm Promissory Note. A remaining amount of US$750,000 may be drawn down under the Additional Credit in monthly installments of up to US$375,000 until August 2024” (Mercedes, Sonora).
  • Luca Mining Corp. announced the appointment of Mr. Dan Barnholden as Chief Executive Officer, effective July 15, 2024. “Ramon Perez, who has served as interim CEO for the past 4 months, will return to his role as President and will work closely with Dan to optimize operations at Campo Morado and achieve commercial production at Tahuehueto.” (Campo Morado, Guerrero).
  • Argonaut Gold Inc. received the clearance decision from COFECE (Comisión Federal de Competencia Económica) and the final order of the Ontario Superior Court of Justice on the pending arrangement transaction between Argonaut and Alamos Gold Inc.  Under the arrangement Alamos will acquire all of the issued and outstanding shares of Argonaut (La Colorada, Sonora).
  • Barksdale Resources Corp. announced the appointment of Mr. Alan Roberts as VicePresident Exploration (San Javier, Sonora).
  • Fresnillo plc. provided an overview of the payments to governments made by Fresnillo plc in 2023. In Mexico the company paid US$255.6 M in taxes, US$0.62 M in royalties and US$41.3 M in licenses and concessions fees (Fresnillo, Saucito and Juanicipio, Zacatecas).

ON SOCIAL RESPONSIBILITY

  • Aura Minerals Inc. announced the 4th annual sustainability report with its achievements in advancing safety, responsibility, sustainability and innovation.

On the image below: Oxidized shear zone on intrusive rocks in a Sonoran Desert project, HQ core. Picture by Jorge Cirett.

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

/ Gambusino Prospector / Leave a comment

By Jorge Cirett                                             

During the 19th week of the year (May 6th to May 12th,2024), companies working in Mexico posted at least 31 press releases. One company released exploration results in its property, while eleven companies released production results for Q1 2024. Two companies announced financing rounds for C$11.77 M, two more granted stock options, one is arranging a US$20 M loan, while another one obtained a US$5 M loan from another company. A company informed on the discovery of a new vein near mining workings, another one updated the mineral resource estimate at its property, two presented drilling results and one more a positive PEA on a copper play. One company issued shares whilst acquiring mining concessions, another one is assessing its ownership on its only Mexican asset, while one other is selling all its Mexican assets. One company informed on board changes. ON MEXICO ISSUES, Mexico was the venue for the meeting of mining industry unions from Argentina, Peru, Canada and Mexico. Golden Minerals announced the divestment of all its Mexican assets, to focus in Argentina. ON EXPLORATION, In Chihuahua, Kingsmen Resources released results from surface sampling at Las Cristinas. ON MINING, Gatos Silver, Aura Minerals, Fortuna Silver, First Majestic, GoGold Resources, Starcore International, Avino Silver & Gold, Pan American Silver, Torex Gold, Equinox Gold and Endeavour Silver presented financial/operational results for Q1 2024. ON FINANCING, Guanajuato Silver Company raised C$11.35 M, Tocvan Ventures raised C$420.6 K. GR Silver Mining granted shares to employees, officers, directors and consultants, and Osisko Development granted 283 K to independent directors. Heliostar Metals is arranging a US$20 M loan for test mining. Silver Storm received a US$5 M loan for advancing La Parrilla project in Zacatecas. ON RESOURCES AND DEVELOPMENT, Impact Silver discovered a new vein at its Zacualpan project. Sierra Metals updated the mineral resource and reserve estimate for Bolivar, in Chihuahua. Silver Storm released drilling results from La Parrilla, Durango. Vizsla Silver released drilling results from La Luisa vein at its Panuco project in Sinaloa. Barksdale Resources announced positive results from a PEA on the San Javier project in Sonora. ON DEALS AND CORPORATE ISSUES, Vizsla Silver issued shares on the acquisition of the San Enrique project concessions. Osisko Development is assessing its ownership on the San Antonio project in Sonora. GoGold announced board changes. Golden Minerals is selling all its assets in Mexico to focus in Argentina. ON SOCIAL RESPONSIBILITY, Torex Gold and Equinox Gold informed on ESG matters.

ON MEXICO ISSUES

  • Mining unions from Argentina, Perú, Canada and Mexico reunited on the second Encuentro del Frente Internacional Minero, under which the unions bid to design strategies to support and defend the rights of mining industry workers.
  • Golden Minerals is the company of the week announcing its departure from Mexico for greener pastures in Argentina.

ON EXPLORATION

  • Kingsmen Resources Ltd. reported surface sampling results from Las Coloradas project in Chihuahua. Twenty-eight samples were collected on the north end of the 1.7 km long Soledad structure/vein system, over a 530 m interval. Highest results comprise 0.6 m @ 0.121 gpt Au, 362 gpt Ag, >1% Pb, 0.4% Zn; 0.5 m @ 0.266 gpt Au, 449 gpt Ag, >1% Pb, 0.7% Zn; 0.8 m @ 205 gpt Ag, >1% Pb, 0.2% Zn; 0.5 m @ 106 gpt Ag, 1% Pb, 0.3% Zn; 1.1 m @ 76 gpt Ag, 2.0% Pb, 0.3% Zn, and two grab samples running 0.12 gpt Au, 81 gpt Ag, 2.6% Pb, 2.0% Zn; 432 gpt Ag, 4.7% Pb, 3.8% Zn. “The better silver grades are localized in structural intersections and flexures in all rock types. The mineralization likely continues at depth below the water table which is at a depth of approximately 125 meters. Blind extensions to all the mineralized structures, as well as new structures, are likely at depth…. The sizes of the old workings suggest the mined mineralization may have been up to several meters in width”. The mineralized structures have not been explored by drilling.

ON MINING

  • Gatos Silver Inc. announced first quarter 2024 financial and operating results. The company owns 70% of the Cerro Los Gatos project in Chihuahua, where 292.1 K tonnes were milled during the period at a 3,210 tpd rate, with ore averaging 284 gpt Ag, 3.99% Zn, 1.77% Pb, 0.28 gpt Au, to produce 2.37 M Oz Ag, 15.8 M Lb Zn, 10.1 M Lb Pb, 1,390 Oz Au, at $11.70 co-product cash cost per Oz Ag, $6.09 By-product cash cost per Oz Ag, $14.36 Co-product AISC per Oz Ag and $10.08 By product per Oz Ag. Total revenue was $72.2 M, at an EBITDA of $35.1 M and cash flow from operations of $37.3 M. At the end of the period the company had a cash balance of $70.6 M.
  • Aura Minerals Inc. filed its unaudited consolidated financial statements for Q1 2024. At Aranzazu, in Zacatecas, the company produced 25,000 Oz AuEq at cash cost $926 per Oz AuEq and an AISC of $1,263 per Oz AuEq.
  • Fortuna Silver Mines Inc. reported its financial and operating results for the first quarter of 2024. The company had consolidated international production of 89,678 Oz Au, 1.07 M Oz Ag (112,543 Oz AuEq). At San Jose, in Oaxaca, during the period 246.7 K tonnes were milled at a rate of 2,182 tpd, grading 147 gpt Ag, 0.90 gpt Au, recovering 89% Ag, 87% Au, to produce 759.1 K Oz Ag, 4,533 Oz Au, at cash cost $21.98 per Oz AgEq and an AISC of $24.24 per Oz AgEq. “The operation is experiencing further cost pressures driven by the continued appreciation of the Mexican peso. The Company conducts regular assessments and trade-offs between maintaining operations and opting for a care and maintenance option”.
  • First Majestic Silver Corp. announced “the unaudited condensed interim consolidated financial results” for the first quarter 2024. During the period, at San Dimas, in Durango, 179 K tonnes were processed to produce 1.16 M Oz Ag, 13,543 Oz Au. At Santa Elena, in Sonora, 224.4 K tonnes were processed to produce 355.2 K Oz Ag, 21,713 Oz Au. At La Encantada, in Coahuila, 588.6 K tonnes were processed to produce 456.2 K Oz Ag, 33 Oz Au. Total production in Mexico amounted to 1.97 M Oz Ag, 35,289 Oz Au. At the endo of the period the company had $102.1 M in cash and cash equivalents, and $127.2 M of restricted cash.
  • GoGold Resources Inc. announced financial results for Q1 2024. The company generated net income of US$1.3 M and revenue of US$8.9 M on the sale of 374.1 K Oz AgEq produced at its Parral tailings project in Chihuahua. GoGold had US$80.8 M in cash by the end of the period.
  • Starcore International Mines Ltd. announced production results for the fourth fiscal quarter ended April 2024. During the period its San Martin mine in Queretaro milled 55.8 K tonnes grading 1.91 gpt Au, 19.6 gpt Ag, recovering 88.6% Au, 56.9% Ag, to produce 3,242 Oz AuEq. The company informs new orebodies have been found with a new geological model, and industrial tests have shown carbonaceous ore is able to be treated to recover precious metals economically.
  • Avino Silver & Gold Mines Ltd. announced its consolidated financial results for the first quarter of 2024. At Avino, in Durango, 169.6 K tonnes were milled to produce 250.6 K Oz Ag, 1,778 Oz Au, 1.35 M Lb Cu (or 629.3 K Oz AgEq), at cash cost $14.89 per Oz AgEq and an AISC of $20.23 per Oz AgEq, at cash cost $14.89 per Oz AgEq and an AISC of $20.23 per Oz AgEq, remaining on track for the production in 2024 of 2.5 M to 2.8 M Oz AgEq. At La Preciosa, near to the Avino mine, capital costs for 2024 are expected to be between US$3.0 to US$4.0 M, to include “surface works and equipment procurement intended for the first phase of mine development for the Gloria and Abundancia Veins”. The company had revenue of $12.4 M and gross profit of $2.3 M.
  • Pan American Silver Corp. reported unaudited results for Q1 2024, including some figures from its Mexican operations. At La Colorada, in Zacatecas, 1.11 M Oz Ag, 500 Oz Au were produced at cash cost $25.01 per Oz Ag and an AISC of $25.37 during the period, while at Dolores, in Chihuahua, 430 K Oz Ag, 17,900 Oz Au were produced at cash cost $1,412 per Oz Au, an AISC of $2,367 per Oz Au. At the end of the period the company had working capital of $693.5 M, inclusive of cash and cash investments of $331.4 M, and $750 M available on its credit facility. Total debt of $806.6 M.
  • Torex Gold Resources Inc. reported financial and operational results for the first quarter of 2024. The company produced from its El Limón-Guajes deposit in Guerrero 115,494 Oz Au, or 117,306 Oz AuEq at cash cost $943 per Oz AuEq and an AISC of $1,221 per Oz AuEq. “The quarter closed with net cash1 of $69.2 million, including $113.2 million in cash and $44.0 million of lease-related obligations, no borrowings on the credit facilities of $300.0 million as at March 31, 2024 and letters of credit outstanding of $7.9 million, providing $405.3 million in available liquidity1”.
  • Equinox Gold Corp.  announced its first quarter 2024 summary financial and operating results, without providing figures per project (Los Filos, Guerrero).
  • Endeavour Silver Corp. announced its financial and operating results for Q1 2024. During the period the company processed 115 K tonnes at Guancaeví, in Durango, to produce 1.33 M Oz Ag, or 1.66 M Oz AgEq at an-in sustaining cost of $21.96 per Oz. At Bolañitos, in Guanajuato, 106.8 K tonnes were processed to produce 118.6 K Oz Ag, or 605 K Oz AgEq at an AISC of $15.59 per Oz. Total production without specifying the source was 1.46 M Oz Ag, 10,133 Oz Au. Cash position of $34.9 M at the end of the period.

ON FINANCING

  • Guanajuato Silver Company Ltd. filed an amended and restated offering document in relation to its previously announced brokered, best efforts offering, for aggregate proceeds of up to C$10.87 M (El Cubo, Guanajuto).
  • GR Silver Mining Ltd. granted stock options, deferred share units and performance share units in accordance with the omnibus long-term incentive plan approved on September’s 2023 AGM. The company granted 1.58 M incentive stock options to certain employees, executive officers, directors and consultants, and also 1.8 M incentive stock options to certain directors and executive officers. 35,294 deferred shares were granted to each non-executive directors for directors’ fees. Also 1.8 M performance share units were granted to certain executive officers of the company Plomosas, Sinaloa).
  • Heliostar Metals Ltd. entered into a non-binding letter of intent on a senior secured debt facility for US$20 M, with an expected fixed 10% rate of interest with a syndicate of lenders led by a New York based Asset Manager. “The net proceeds of the Facility will be used to advance the underground decline and complete test mining to process a bulk sample from the Ana Paula deposit in Guerrero…. Funds from the sale of gold produced from the bulk sample are anticipated to repay the principal and interest of the loan and the floor price for a portion of the test mining ounces minimizes completion risk”. The company will also issue 17.24 M warrants to the lenders at $0.40 and $0.55 per share (Ana Paula, Guerrero).
  • Sierra Madre Gold and Silver Ltd. announced that First Majestic Silver Ltd. advanced the company a US$5 M non-revolving secured loan. The loan is for a 2-year term and bears 15% interest rate, compounded monthly. The company agreed to pledge all the shares of the subsidiary that owns La Guitarra project in favour of First Majestic.
  • Guanajuato Silver Company Ltd. announced the closing of its previously announced brokered, best-efforts offering for aggregate gross proceeds of C$11.35 M, under a combined Listed Issuer Financing Exemption (LIFE) and concurrent placement to accredited investors. Certain directors, officers and other insiders and their affiliates participated in the offering and acquired $503 K in shares (El Cubo, Guanajuato).
  • Osisko Development Corp. granted 283.2 K deferred share units to its independent directors (San Antonio, Sonora).
  • Tocvan Ventures Corp. closed a final tranche of its previously announced non-brokered private placement for gross proceeds of C$420.6 K, and total combined gross proceeds of $2.52 M. Since early April 1,825 m of reverse circulation drilling have been completed in 15 holes at its Pilar project in Sonora, sample results are pending.

ON RESOURCES AND DEVELOPMENT

  • Impact Silver Corp. announced a new silver vein discovery in its currently producing Guadalupe mine in the Royal Mines of Zacualpan district in Estado de México. The Kena Vein south is within 100-200 m of active mine workings. Core length results from the first four holes comprise 1.65 m @ 378 gpt Ag, 0.40 gpt Au, 0.3% Pb, 0.4% Zn; 0.75 m @ 1,400 gpt Ag, 0.39 gpt Au, 0.9% Pb, 2.1% Zn; 17.30 m @ 214 gpt Ag, 0.02 gpt Au, 0.2% Pb, 0.3% Zn (including 3.90 m @ 358 gpt Ag, 0.03 gpt Au, 0.2% Pb, 0.4% Zn); 0.78 m @ 463 gpt Ag, 0.09 gpt Au, 0.6% Pb, 1.2% Zn; 1.20 m @ 198 gpt Ag, 1.99 gpt Au, 3.3% Pb, 5.9% Zn; 0.40 m @ 1,450 gpt Ag, 0.65 gpt Au, 2.2% Pb, 3.0% Zn; 0.70 m @ 1,615 gpt Ag, 0.58 gpt Au, 1.8% Pb, 6.0% Zn. “The Kena Vein South has now been drill tested over a length of 150 metres from mine Level 140 and is open for extension to the southeast, updip and downdip. Drilling is continuing”.
  • Sierra Metals Inc. updated the mineral resource and reserve estimates for its Bolivar mine in Chihuahua. Measured and indicated resources comprise 18.4 M tonnes @ 0.76% Cu, 15.29 gpt Ag, 0.25 gpt Au, containing 306 M Lb Cu, 9 M Oz Ag, 150,000 Oz Au, whilst inferred resources amount to 12.11 M tonnes @ 0.72% Cu, 12.21 gpt Ag, 0.19 gpt Au, containing 193 M Lb Cu, 4.75 M Oz Ag, 70,000 Oz Au. Mineral resources are inclusive of mineral reserves, which amount to 5.6 M tonnes @ 0.77% Cu, 16.83 gpt Ag, 0.28 gpt Au, containing 94.7 M Lb Cu, 3 M Oz Ag, 50,000 Oz Au
  • Silver Storm Mining Ltd. Released further drill results from its La Parrilla mine complex in Durango. Highlighted core length intervals comprise 4.13 m @ 376 gpt Ag, 0.04 gpt Au, 1.3% Pb, 1.4% Zn (including 0.60 m @ 1,270 gpt Ag, 0.14 gpt Au, 5.0% Pb, 7.4% Zn); 7.50 m @ 284 gpt Ag, 0.04 gpt Au, 0.9% Pb, 0.4% Zn (including 1.12 m @ 390 gpt Ag, 0.06 gpt Au, 2.0% Pb, 0.6% Zn and 1.38 m @ 611 gpt Ag, 0.03 gpt Au, 2.6% Pb, 0.9% Zn); 2.36 m @ 619 gpt Ag, 0.19 gpt Au, 1.3% Pb, 1.5% Zn (including 0.57 m @ 1,555 gpt Ag, 0.24 gpt Au, 1.6% Pb, 2.0% Zn); 1.21 m @ 466 gpt Ag, 0.14 gpt Au, 1.6% Pb, 0.7% Zn. These results come from the C1940, San Rafael and La Estrella zones in the Quebradillas mine, and are not included in the last resource estimate of August 2023.
  • Vizsla Silver Corp. reported results from six new holes at the La Luisa vein, at its Panuco project in Sinaloa. Highlighted true width results comprise 1.90 m @ 0.47 gpt Au, 29 gpt Ag; 1.30 m @ 2.07 gpt Au, 682 gpt Ag, 0.2% Pb, 0.2% Zn; 1.00 m @ 0.69 gpt Au, 65 gpt Ag, 0.2% Pb; 0.75 m @ 2.78 gpt Au, 827 gpt Ag, 0.6% Pb, 1.8% Zn; 2.0 m @ 2.94 gpt Au, 102 gpt Ag, 0.2% Pb, 1.1% Zn; 0.56 m @ 7.96 gpt Au, 78 gpt Ag, 0.3% Pb, 1.5% Zn; 2.90 m @ 0.71 gpt Au, 185 gpt Ag, 1.4% Pb, 0.7% Zn; 1.22 m @ 0.71 gpt Au, 255 gpt Ag, 2.3% Pb, 1.2% Zn; 0.56 m @ 0.53 gpt Au, 234 gpt Ag, 0.7% Pb, 0.2% Zn; 2.11 m @ 0.93 gpt Au, 33 gpt Ag, 0.2% Pb, 1.8% Zn; 0.80 m @ 1.05 gpt Au, 77 gpt Ag, 0.1% Pb, 0.2% Zn; 2.70 m @ 0.42 gpt Au, 52 gpt Ag, 0.2% Pb, 0.6% Zn; 0.48 m @ 61.60 gpt Au, 3,310 gpt Ag, 0.8% Pb, 1.3% Zn; 1.10 m @ 7.79 gpt Au, 103 gpt Ag, 0.2% Pb, 0.8% Zn; 0.73 m @ 9.73 gpt Au, 115 gpt Ag, 0.2% Pb, 1.0% Zn. La Luisa vein has been mapped for 1,500 m on the surface, and defined by 57 holes for 1,670 m and 450 m downdip, averaging 2.56 m @ 3.09 gpt Au, 150 gpt Ag, 0.36% Pb, 1.35% Zn.
  • Barksdale Resources Corp. announced positive results of a preliminary economic assessment (PEA) completed on the San Javier oxide copper-gold project in Sonora. “The PEA envisions a modest capital cost project utilizing conventional openpit mining with a solvent-extraction and electrowinning (“SXEW”) plant to produce LME-grade copper cathodes on-site”. Highlights include a 13-year mine life producing 209 M Lb of cathode Cu with an on-site SXEW, open pit mining with a waste to ore ratio of 0.66 to 1, average LOM cash costs of $2.16 per Lb Cu, low initial cost of US$116.8 M an upside expansion on the Mesa Grande and Trinidad areas and the assessment of potential gold recovery and run of mine processing. Metallurgical testwork returned 85% recovery of soluble copper in the leach cap and oxide zones, 75% in the mixed oxide/sulfide and 60% recovery in the sulfide zone. The mineral resource estimate stands at 70.1 M tonnes @ 0.271% Cu containing 289.4 M Lb soluble Cu in the measured and indicated category, and 6 M tonnes @ 0.240% Cu, containing 19.9 M Lb of soluble Cu.

ON DEALS AND CORPORATE ISSUES

  • Vizsla Silver Corp. has now issued 448.1 K shares in relation to the acquisition of the 10,667 Ha San Enrique project claims in Sinaloa from Inca Azteca Gold S.A.P.I. de C.V. Minera Canam, S.A. de C.V. The claims are south and partially adjacent to Vizsla’s Panuco project, and covered 100% with LiDAR and partially covered with high-resolution aero-magnetic and radiometric surveys.
  • Osisko Development Corp. informed the San Antonio project in Sonora was placed in care and maintenance after completion of processing of the remaining stockpile inventory from the heap leach pad in Q3 2023. The company waits for the next steps the government takes after the June 2024 presidential elections with respect to the permitting process and the status of open pit mining in the country. Osisko is “exploring the potential for a financial or strategic partner in the asset or for a full or partial sale of the asset”.
  • GoGold Resources Inc. announced the retirement of George Wayne, FCPA, FCA from its board. The company has appointed Douglas Reid to its board (Parral Tailings, Chihuahua).
  • Golden Minerals Co. entered into a definitive agreement to sell the primary assets comprising its Velardeña properties in Durango. “The assets being sold include the Velardeña and Chicago mines, both of the Company’s oxide and sulfide processing plants and related equipment”. On April 29, 2024, the buyer paid a non-refundable $1 M in cash. On May 20, 2024, the buyer shall pay $2.0 M in cash and on July 1, 2024, the buyer shall pay $2.5 M in cash. In other matters, the company agreed to pay $250 K to Unifin Financiera S.A.B. de C.V. in exchange for UNIFIN’s withdrawal of an ongoing lawsuit. “The sale will enable us to divest of our production assets and related liabilities in Mexico and allow us to focus on exploration and development, principally of our Argentina assets. We also anticipate future net proceeds from the sale of tax credits related to the holding companies of the production assets.”

ON SOCIAL RESPONSIBILITY

  • Torex Gold Resources Inc. “exited the quarter with one lost-time ankle injury at the Media Luna Project and reached 14 million hours lost-time injury free at the El Limón-Guajes (“ELG”) Mine Complex”. The lost-time injury frequency for the Morelos Complex in Guerrero was 0.15 per million hours worked for employees and contractors on a rolling 12-month basis.
  • Equinox Gold Corp. published its 2023 Environmental Social and Governance (ESG) report.

On the image below: Long shadows on vein ridges on a project in the Sonoran Desert. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the Fourth Week of September 2023

/ Gambusino Prospector / Leave a comment

By Jorge Cirett                                             

During the 39th week of the year (September 25th to October 1st, 2023), only 11 companies working in Mexico posted news releases (the weekly low record is nine, since 2015). One company reported exploration on one of its properties, while no news on mining were released. Five companies informed on the opening or closing of private placements, their assistance to investor conferences and/or the amendment of credit facilities.  One company presented drilling results from one of its properties and one other an updated mineral resource estimation on one of its mines. The government cancelled nine mining concessions to one company in Sonora. One company updated on results of its annual general meeting and one other informed on modifications to streaming amendments. ON MEXICO ISSUES, the federal government is playing all tricks available on its hat to get the Sonora Lithium deposit under its control, expropriating mining concessions without calling it an expropriation, of what they see as a project with a potential large income revenue and a stepping stone on resources sovereignty. Camimex regards the cancellation infeasible while pointing that exploration expenditure has fallen 40% in recent years. A Labor Panel has been installed under T-MEC to review the US claim against Grupo Mexico in one of its mining units. ON EXPLORATION, In Chihuahua, Kootenay Silver informed four drill holes have been completed at Columba. ON MINING, no relevant news. ON FINANCING, Aztec Minerals closed the final tranche of a private placement for C$639 K, GR Silver was granted an extension for its financing placement, Regency Silver completed the first tranche of an upsized private placement.  ON RESOURCES AND DEVELOPMENT, Heliostar Metals reported drilling results from Ana Paula, in Guerrero. Guanajuato Silver presented an updated resource estimate for San Ignacio, in Guanajuato. ON DEALS AND CORPORATE ISSUES, the Mexican government cancelled nine mining concessions to Ganfeng’s Lithium in Sonora, in an unscrupulous bid to get its hands on the only defined lithium resource in Mexico. Southern Silver provided an update on results from its AGM. Bear Creek Mining presented two press releases to inform on changes on the two streaming agreements on the Mercedes mine production in Sonora. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • Camimex (Cámara Minera de México) regards the cancellation of Ganfenfg Lithium’s concessions in Sonora as not viable. Ganfeng was served in August with the cancellation notice by the government on grounds of lack of investment, which the company denies. The exploration expenditure in México has fallen close to 40% in the last seven years.
  • Ganfeng’s Lithium cancelation of claims in Sonora by the federal government will have to be dealt with in national courts, as Mexico and China do not count with a trade agreement.
  • Marath Bolaños, head of the Secretaría del Trabajo y Previsión Social (Labor Bureau) stated that the Labor Panel under the T-MEC has been formed, to review the controversy between the US government and Grupo Mexico’s San Martín mine in Zacatecas.
  • The president of Mexico indicated that its government is reviewing lithium mining concessions.

ON EXPLORATION

  • Kootenay Silver Inc. updated on drilling progress of their program at Columba, in Chihuahua. Four diamond holes have been completed of the expected 12-15 holes in the 3,000 m program. “Analyses are awaited, however visual confirmation of mineralization and veining typical of D-Vein has been reported by the logging geologists in the holes to date where modeling predicted. Veining and associated stockwork mineralization in drilled length in each hole was observed to measure approximately 5.0 m vein/ stockwork, 8.2 m vein and 23 m stockwork, 10 m vein and 26 m stockwork and 1.0 m vein, 3.0 m stockwork in holes CDH-23-136 through CDH-23-139 respectively”.

ON MINING

  • No Relevant News.

ON FINANCING

  • Aztec Minerals Corp. closed the second and final tranche of its non-brokered private placement for gross proceeds of CAD$639.1 K. Aggregate gross proceeds from both tranches are CAD$1.55 M. Alamos Gold Inc. participated in the financing with $140.6 K (Cervantes, Sonora).
  • Capstone Copper Corp. amended its existing revolving credit facility to increase the aggregate commitments from $600 M to $700 M “and extend the maturity from May 2026 to September 2027. The Amended Credit Facility will bear interest on a sliding scale of adjusted term SOFR plus a margin of 2.000% to 2.875%”. Capstone cash and cash equivalents position by the end of June 2023 was $520 M (Cozamin, Zacatecas).
  • GR Silver Mining Ltd. was granted an extension by the TSX Venture Exchange to complete its non-brokered private placement for gross proceeds of up to $1 M. A first tranche of $329 K in gross proceeds was closed on August 10, 2023 (Plomosas, Sinaloa).
  • Regency Silver Corp. completed the first tranche of a previously announced private placement, which has been upsized to C$1.75 M from C$1.5 M (Dios Padre, Sonora).
  • Vortex Metals Inc. will be participating in the 23rd Investment Conference organized by CM-Equity AG in Munich (Riqueza Marina, Oaxaca).

ON RESOURCES AND DEVELOPMENT

  • Heliostar Metals Ltd. reported drilling results from the Ana Paula project in Guerrero. These two infill holes are within the “High Grade Panel” at the deposit, and are the last that are to be included in the resource update planned for November 2023. Highlighted core length intercepts comprise 35.9 m @ 8.17 gpt Au (including (11.8 m @ 13.55 gpt Au); 83.6 m @ 8.57 gpt Au (including 63.0 m @ 10.41 gpt Au, which includes 12.0 m @ 18.36 gpt Au); 57.0 m @ 6.03 gpt Au (including 5.0 m @ 45.44 gpt Au); 14.6 m @ 32.98 gpt Au (or 18.60 gpt Au if assays cut to 100 gpt Au).
  • Guanajuato Silver Company Ltd. presented a new mineral resource estimate for its San Ignacio mine in Guanajuato. Measured and indicated resources comprise 790 K tonnes @ 123 gpt Ag, 2.10 gpt Au, containing 3.14 M Oz Ag, 53,000 Oz Au, and inferred resources of 2.17 M tonnes @ 127 gpt Ag, 2.27 gpt Au, containing 8.9 M Oz Ag, 158,000 Oz Au. “… an increase of 130% in the measured & indicated category and 283% in the inferred category.”

ON DEALS AND CORPORATE ISSUES

  • The Mexican government, through the Direccion General de Minas (DGM) cancelled nine mining concessions in Sonora to Ganfeng Lithium, including those where the largest (and so far, the only) lithium deposit in Mexico is located. The company was informed of the cancellation last August, with the government stating that the minimum investment required between 2017 and 2021 was not fulfilled and Ganfeng declaring its compliance above that limit. The company has already filed claims against the resolution at the Economy Secretariat (Secretaría de Economía). Note by editor. – This is one more issue between private capital and the Mexican government, with a president with a world vision from the 1970’s, where the State is to have a ruling fist on all economic activities, and the president a final saying on what is to be done or not.
  • Southern Silver Exploration Corp. provided a corporate update from the company’s annual meeting. During the meeting seven incumbent directors were elected and the chartered accountants reappointed. Lawrence Page, Robert Macdonald and Killian Ruby were reappointed as president, vice president exploration and chief financial officer respectively. (Cerro Las Minitas, Durango).
  • Bear Creek Mining Corp. made the final gold delivery pursuant to a gold pre-pay streaming agreement with Nomad Royalty Co. Ltd. which was assumed upon the acquisition of the Mercedes mine, in Sonora, in April 2022. As a result, over 300 additional ounces of gold produced at Mercedes per month will now be fully available for sale by the Company. A promissory with 1368445 B.C. Ltd. was amended to extend the maturity from the end of September 2023 to the end of November 2023.
  • Bear Creek Mining Corp. announced a restructuring of its current stream and debt obligations with Sandstorm Gold Ltd. to improve the Mercedes mine ability to produce free cash flow near term by reducing near-term Au and Ag stream delivery obligations and the refinancing and extensions of Bear Creek’s debt with Sandstorm. Sandstorm will refinance its US$22.5 M convertible debenture into a 5-year convertible promissory note at 7% per year and convertible into Bear Creek shares at C$0.73 per share. “Sandstorm has agreed to make up to US$8 million in additional credit” prior to the end of August 2024. Bear Creek has to complete an equity financing to raise at least CAD$9.5 M.

ON SOCIAL RESPONSIBILITY

  • No relevant news.

On the image below: Geologist Julio Carcamo on a silicified ridge in the Sonoran Desert. Picture by Jorge Cirett.

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

/ Gambusino Prospector / Leave a comment

By Jorge Cirett                                             

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

ON MEXICO ISSUES

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

ON EXPLORATION

  • No Relevant News.

ON MINING

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

ON FINANCING

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

ON RESOURCES AND DEVELOPMENT

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

ON DEALS AND CORPORATE ISSUES             

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

ON SOCIAL RESPONSIBILITY

  • No relevant news.

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

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

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Silica-Alunita in a hydrothermal breccia

By Miguel A Heredia During the 34th week of the year (August 21st to August 27th, 2023), at least 20 press releases were announced by companies working in Mexico, and 4 news published by the media, with eleven reporting resources and development of their properties, five commenting on Mexican issues, four disclosing deals and corporate issues, one announcing financing issues, one communicating production and financial results, one informing on exploration results, and one discussing social issues. ON MEXICO ISSUES, The United States government requested the installation of the first United States – Mexico – Canada Agreement (USMCA or T-MEC) labor panel against Grupo Mexico. USMCA panel analyzes whether there was a violation in the case of the San Martin Mine, Zacatecas of Grupo Mexico. The president of the Business Coordinating Council (CCE), Francisco Cervantes pronounced on the request for a labor panel of the T-MEC in a mine of Grupo México. Grupo Mexico sees an impact beyond its San Martin Mine. GoGold, Sierra Metals, Vizsla and Guanajuato Silver reported the best drilling intercepts in Mexico on the fourth week of August, 2023. ON EXPLORATION, Prismo provided an update of its ongoing drilling program at its Palos Verdes project in Sinaloa.  ON MINING, Guanajuato Silver reported Q2, 2023 production and financial results from their mine operations in Mexico. ON FINANCING, Golden Minerals received New York Stock Exchange (NYSE) acceptance of plan to regain listing compliance (Rodeo project, Durango).  ON RESOURCES AND DEVELOPMENT, Tocvan and its JV partner Colibri announced results from a bulk sample collected at Pilar project in Sonora.  GoGold released additional drilling results from the Main Area at Los Ricos South project, Jalisco. Golden Tag filed NI43-101 technical report on Mineral Resources for its La Parrilla Mine Complex, Durango. Vizsla reported results from 11 drillholes collared on the Napoleon Vein at its flagship Panuco project in Sinaloa. Golden Minerals completed an updated technical report as a Preliminary Economic Assessment (PEA) for its Velardeña properties in Durango. Guanajuato Silver provided drill results from its Topia Mine in Durango. Sierra Metals announced a mineral resource expansion at its Bolivar Mine in Chihuahua. Silver Tiger reported results from initial scoping-level metallurgical test from its high grade Ag-Au El Tigre project, Sonora. Impact Silver provided a construction update at its Plomosas mine in Chihuahua. Pan American Silver announced mineral resource and mineral reserves as at June 30, 2023 at their Mexican mine operations and advanced mining projects. ON DEALS AND CORPORATE ISSUES, McEwen and Sierra Metals announced the appointment of new members to their Board of Directors. Discovery announced key appointments that strengthen the company’s Board of Directors, and also the permitting and technical teams (Cordero project, Chihuahua). Aloro announced that it has cancelled the option agreement with Cuesta del Cobre S de R.L. de C.V., to purchase the Quitovac Mine project in Sonora.  ON SOCIAL RESPONSIBILITY, Orla Mining released its inaugural sustainability report (Camino Rojo, Zacatecas).

ON MEXICO ISSUES

  • The United States government requested the installation of the first United States – Mexico – Canada Agreement (USMCA or T-MEC) labor panel under the Rapid Response Labor Mechanism (MLRR), for disagreeing with the Mexican government on the complaint against the San Martin Mine, of Grupo México, located in Zacatecas, who is accused of having impeded free unionization and authentic collective contracting. The Mexican government, for its part, responded that it would not review the case under the T-MEC mechanisms, arguing that the conflict dates back to 2007 (since the T-MEC entered into force in 2020) and that there is no evidence of that the mine exports to the United States, so it would not be a facility covered by the treaty. Grupo Mexico denounced that the union leader Napoleón Gómez Urrutia, presented the complaint that gave rise to this process with two objectives: “to have a new pretext to ignore the definitive award that condemns him to pay USD $55M plus accrued yields from 2005 to former mining workers and generate conflicts to press for a new political position that gives him jurisdiction / political privileges (“fuero politico”). After the lifting of the strike, in 2018, San Martin has received investments of more than USD $105M, has produced more than 1.25M tonnes of mineral each year and has generated about 1,300 jobs.
  • USMCA panel analyzes whether there was a violation in the case of the San Martin Mine, Zacatecas of Grupo Mexico. Given these facts, Grupo México indicated that it is essential for the San Martin Mine to put an end to a conflict that has harmed workers and their families for the last 15 years. Grupo México assured that the conflict in the San Martin Mine is not the product of the disagreement of the workers, but of the senator for Morena Napoleón Gómez Urrutia, who presented the complaint that gave rise to this process. “Urrutia sought to have a new pretext to ignore the final award that condemns him to pay USD $55M plus accrued income since 2005 to former mining workers, as well as generate conflicts to press for a new political position.
  • The president of the Business Coordinating Council (CCE), Francisco Cervantes pronounced on the request for a labor panel of the T-MEC in a mine of Grupo México. At the request of the United States government for the first panel of the Rapid Response Labor Mechanism under the Treaty between Mexico, the United States, and Canada at the San Martin mine of Grupo México, in Sombrerete, Zacatecas, Francisco Cervantes Díaz, president of the CCE, commented that it is a panel that has already lost a labor part here, that is why they are entering the issue in the United States and the resolution must be waited for. The Ministry of Economy indicated that Mexico rejected the request because this conflict dates from July 2007, and the law is not retroactive, since the “T-MEC would not be applicable to the facts related to this controversy.”
  • Grupo Mexico sees an impact beyond its San Martin Mine. The Mexican government will have the burden of proof to demonstrate in the T-MEC instance that there were no violations of union freedom in the San Martin Mine. If the case is lost, the sanctions could affect other company exports, beyond those originating from the facility in conflict, envisions the Grupo Mexico´s lawyer. It is worth remembering that the United States filed a labor complaint with the Mexican government accusing that, in the San Martin Mine, belonging to Grupo México, the rights of workers were violated because a strike was terminated by establishing a collective contract with another union, which would mean a violation of workers’ rights. Mexico maintained that this fact was prior to the entry into force of the trade agreement with the United States and Canada, and refused to carry out the investigation to determine a possible Remediation Plan for the company.
  • GoGold Resources Inc., Sierra Metals Inc., Vizsla Silver Corporation, and Guanajuato Silver Company Ltd., reported the best drilling intercepts in Mexico on the fourth week of August, 2023. Details are shown in the table below:

ON EXPLORATION

  • Prismo Metals Inc., provided an update of its ongoing drilling program at its Palos Verdes project in Sinaloa. The company has drilled 2,620m in the current program and completed thirteen holes with one hole in progress, PV-23-32. One additional hole is contemplated after completing hole PV-23-32 as part of the original drill program which began in May 2023. “This will be followed by the previously announced expansion of the drill program, with holes to be drilled from Vizsla Silver Corp. concessions adjacent to the Palos Verdes concession. These holes will target the Palos Verdes vein at depth. This follows a recommendation presented by the Panuco Joint Technical Committee to drill approximately 3,600 meters in ten holes to be completed in two phases”.

ON MINING

  • Guanajuato Silver Company Ltd., reported Q2, 2023 production and financial results from their mine operations in Mexico (El Cubo, San Ignacio, and Valenciana in Guanajuato, and Topia in Durango) All amounts are expressed in US dollars. The company mined 166,671 tonnes and milled 163,793 tonnes with metallurgical recoveries of 84.9% Ag and 83.1% Au, to produce 477.6K Oz Ag, 4,719 Oz Au, 875.8K Lb Pb, and 897.2K Lb Zn (941.3K Oz AgEq). It sold 462.9K Oz Ag, 4,427 Oz Au, 830.6K Lb Pb, and 871.3K Lb Zn (901.5K Oz AgEq) at realized prices of $24.33/ Oz Ag, $1,988.05/Oz Au, $0.97/Lb Pb, and $1.14/Lb Zn. Guanajuato Silver reported revenue of $16.8M; cost of sales of $19.2M; mine operating loss of ($2.4M); mine operating cash flow before taxes of $394.3K; net loss of ($8.6M); EBIDTA of ($4.6M); adjusted EBIDTA of ($3.41M); and working capital of ($17.8M).

ON FINANCING

  • Golden Minerals Company received New York Stock Exchange (NYSE) acceptance of plan to regain listing compliance. The listing of the Company’s common stock will continue pursuant to an extension during the plan period, during which time the Company will be subject to periodic review to determine whether it is making progress consistent with the accepted plan (Rodeo project, Durango). 

ON RESOURCES AND DEVELOPMENT

  • Tocvan Ventures Corp., and its JV partner Colibri Resource Corporation, announced results from a bulk sample collected at Pilar project in Sonora. Highlights of the recovery results for heap leaching match regional operating mine – head grade exceeds expectations include 62% recovery of gold achieved over 46-day leaching period; report confirms with increase in irrigation flowrate, higher recovery can be achieved; head grade calculated at 1.9 g/t Au and 7 g/t Ag, extracted grade calculated at 1.2 g/t Au and 3 g/t Ag; bulk sample only included coarse fraction of material (+3/4”to +1.8”); and fine fraction (-1/8”) indicated rapid recovery with agitated leach. Highlights of recap of fine fractions and gravity recovery results include 80%recovery of gold and 94% recovery of silver after rapid 24-hour retention time in agitated bottle roll test; and 95 to 99% recovery of gold and 73 to 97% recovery for silver in gravity recovery with agitated leach results of five composite samples. It includes the recovery of 99% Au and 73% Ag from drill core composite at 120m depth.
  • GoGold Resources Inc., released additional drilling results from the Main Area at Los Ricos South project, Jalisco. Drilling highlights include hole LRGG-23-316 with 1.27 g/t Au and 396 g/t Ag (6.54 g/t AuEq or 491 g(/t AgEq) over 27.3m, including 4.43 g/t Au and 1,338 g/t Ag (22.26 g/t AuEq or 1.665 g/t AgEq) over 7.6m, including 11.80 g/t Au and 7,230 g/t Ag (108.20 g/t AuEq or 8,115 g/t AgEq) over 0.9m; hole LRGG-23-304 with 1.82 g/t Au and 181 g/t Ag (4.24 g/t AuEq or 318 g/t AgEq) over 10m, including 4.34 g/t Au and 633 g/t Ag (12.78 g/t AuEq or 958 g/t AgEq) over 1.8m; hole LRGG-23-306 with 4.99 g/t Au and 605 g/t Ag (13.05 g/t AuEq or 979 g/t AgEq) over 11.7m, including 30.5 g/t Au and 3,550 g/t Ag (77.83 g/t AuEq or 5,837 g/t AgEq) over 1.5m; hole LRGG-23-309 with 1.5 g/t Au and 89 g/t Ag (2.69 g/t AuEq or 202 g/t AgEq) over 18.6m, including 12.05 g/t Au and 144 g/t Ag (13.97 g/t AuEq or 1.048 g/t AgEq) over 0.6m; and hole LRGG-23-313 with 3.23 g/t Au and 235 g/t Ag (6.36 g/t AuEq or 477 g/t AgEq) over 9.2m, including 4.64 g/t Au and 461 g/t Ag (10.79 g/t AuEq or 809 g/t AgEq) over 3.2m. The Main Area drilling campaign’s purposes is to better define the very high-grade portions of the current deposit that may be amenable to bulk underground mining.
  • Golden Tag Resources Ltd., filed NI43-101 technical report on Mineral Resources for its La Parrilla Mine Complex, Durango, with an effective date of May 31, 2023.
  • Vizsla Silver Corp., reported results from 11 drillholes collared on the Napoleon Vein at its flagship Panuco project in Sinaloa. Drilling highlights (true widths) include hole NP-23-380 with 111 g/t Ag, 0.64 g/t Au, 0.01% Pb, and 0.01% Zn (147 g/t AgEq) over 5.4m, plus 561 g/t Ag, 1.08 g/t Au, 1.3% Pb, and 6.2% Zn (849 g/t AgEq) over 1.35m, plus 346 g/t Ag, 2.21 g/t Au, 0.8% Pb, and 4.3% Zn (650 g/t AgEq) over 0.4m; hole NP-23-301 with 64 g/t Ag, 0.72 g/t Au, 0.8% Pb, and 0.8% Zn (160 g/t AgEq) over 1m, plus 908 g/t Ag, 7.37 g/t Au, 1.6% Pb, and 4.9% Zn (1,568 g/t AgEq) over 1.9m, including 1,500 g/t Ag, 8.96 g/t Au, 2% Pb, and 4% Zn (2,205 g/t AgEq) over 0.65m; hole NP-23-392 with 527 g/t Ag, 3.78 g/t Au, 2.1% Pb, and 5% Zn (989 g/t AgEq) over 2.5m, including 1,500 g/t Ag, 9.97 g/t Au, 5.2% Pb, and 6.7% Zn (2,465 g/t AgEq) over 0.69m, plus 258 g/t Ag, 1.62 g/t Au, 1.9% Pb, and 15.5% Zn (967 g/t AgEq) over 0.95m, plus 40 g/t Ag, 1.96 g/t Au, 0.6% Pb, and 11.4% Zn (602 g/t AgEq) over 1.55m. “The new drill results are centered on the western portion of the district and are part of Vizsla’s ongoing 90,000m resource infill and expansion/discovery-focused drill program. Infill and step-out (expansionary) drilling completed to date has led to an improved understanding of the mineralization controls along the Napoleon vein corridor”.
  • Golden Minerals Company completed an updated technical report as a Preliminary Economic Assessment (PEA) for its Velardeña properties in Durango. Mineral Resource Estimate (sulphides) as at June 1, 2023 considers measured + indicated resources of 665,900 tons with grades of 402 g/t Ag, 5.54 g/t Au, 1.7% Pb, and 2.1% Zn for a total of 8.6M Oz Ag, 118.5K Oz Au, 24.77M Lb Pb, and 30.48M Lb Zn contained, and inferred resources of 1,059,900 tonnes of 413 g/t Ag, 5.1 g/t Au, 1.8% Pb, and 2.3% Zn for a total of 14.06M Oz Ag, 173.7K Oz Au, 42.3M Lb Pb, and 52.7M Lb Zn contained. Highlights of the economic analysis include a mine life of 10.5 years; Pre-Tax NPV (8%) of USD $136.7M and IRR of 1,320.2%; After-Tax NPV (8%) of USD $87.6M and IRR of 860.7%; and a payback of less than one year.
  • Guanajuato Silver Company Ltd., provided drill results from its Topia Mine in Durango. Drilling highlights reported in true widths include hole UT23-468 (Argentina Vein) with 0.15 g/t Au, 202 g/t Ag, 2.3% Pb, and 0.8% Zn (317 g/t AgEq) over 0.36m; hole UT23-470  (Argentina Vein) with 0.09 g/t Au, 132 g/t Ag, 0.2% Pb, and 1.1% Zn (182 g/t AgEq) over 0.35m; hole UT23-471 (Argentina Vein) with 0.1 g/t Au, 547 g/t Ag, 1.1% Pb, and 1.8% Zn (644 g/t AgEq) over 0.80m; hole UT23-474 (Santa Cruz Vein) with 0.06 g/t Au, 490 g/t Ag, 0.7% Pb, and 0.2% Zn (521 g/t AgEq) over 0.18m; and hole UT23-476 (san Gregorio Vein) with 0.16 g/t Au, 1,180 g/t Ag, 5.1% Pb, and 23.9% Zn (2,150 g/t AgEq) over 0.15m, plus 0.19 g/t Au, 161 g/t Ag, 0.3% Pb, and 10.6% Zn (551 g/t AgEq) over 1.91m, plus 0.33 g/t Au, 124 g/t Ag, 0.4% Pb, and 7.2% Zn (409 g/t AgEq) over 0.25m. “Drilling of the Argentina and Santa Cruz veins is being done from the new El Condor Tunnel with the objective of defining the trend of mineralization to the west of the current intercepts. The Rosario and San Gregorio veins, located in the southeastern part of the district, have been drilled from the Rosario ramp; these veins are separated by approximately 350 metres, and the objective there is to follow the trend of mineralization to the west”.
  • Sierra Metals Inc., announced a mineral resource expansion at its Bolivar Mine in Chihuahua. The company reported additional 15.5M Lb CuEq in measured and indicated mineral resources hosted by the Dulce structure at its Bolivar mine in Chihuahua, Mexico. Mineral Resource at Dulce Zone as at June 30, 2023 include measured + indicated resources of 1,236,000 tonnes with grades of 0.83% Cu, 0.47 g/t Au, and 26 g/t Ag (1.24% CuEq) for a total of 22.7M Lb Cu, 18.7K Oz Au, and 1.03M Oz Ag (33.8M Lb CuEq) contained, and inferred resources of 431K tonnes with grades of 0.67% Cu, 0.57 g/t Au, and 25 g/t Ag (1.12% CuEq) for a total of 6.4M Lb Cu, 7.9K Oz Au, and 345K Oz Ag (10.6M Lb CuEq) contained.
  • Silver Tiger Metals Inc., reported results from initial scoping-level metallurgical test from its high grade Ag-Au El Tigre project, Sonora. Preliminary metallurgical work demonstrates excellent recoveries of silver, gold, copper, zinc and lead in the Sulphide and Black Shale Zones with silver equivalent recoveries of 95.7% and 98.1%, respectively. Preliminary rougher flotation tests of the Black Shale Zone recovered 91.1% copper, 98.2% lead, 98.8% zinc, 91.9% gold, and 98.4% silver (Overall Silver Equivalent Recovery – 98.1%);  preliminary rougher flotation tests of the Sulphide Zone recovered 94.2% copper, 95.3% lead, 97.6% zinc, 79.6% gold, and 96.0% silver (Overall Silver Equivalent Recovery – 95.7%);  surface Stockwork Zone column test extractions recovered – 83.1% Gold, 64.3% Silver at 3/8-in crush size with no requirement for agglomeration indicated in these tests (Overall Silver Equivalent Recovery – 78.1%; and also notable is the low cyanide consumption of 0.68 kg per tonne and lime consumption of 2.33 kg per tonne. “Previous drilling of the Surface Stockwork Zone has indicated a mineralized zone in excess of 100 meters true width. With high recoveries of 78.1% silver equivalency in column testing, simulating a heap leaching process, the Corporation sees the potential for an open pit low-cost heap leach process. This open pit heap leach process will be defined as part of the upcoming PEA”.
  • Impact Silver Corp., provided a construction update at its Plomosas mine in Chihuahua. “All necessary components of the mill have arrived on site or have been refurbished with assembly currently in the final stages. Testing and modification of the plant is expected to start in late summer, with ramp up to design capacity of nearly 200 tpd expected over the coming months. Construction is now approximately 85% complete. The Company has applied for the expansion of the current tailings pond which is expected to add at least an additional two years capacity. Meanwhile, an additional tailings pond is in the planning stages to accommodate years of future production and growth. Refurbishments to ventilation, electrical and lighting systems are ongoing as activity increases underground. Mining has begun and is expected to ramp up as the Company deploys additional equipment to the mine including scoop trams and underground trucks. Underground drilling to better define and expand resources has begun and drill permits for surface brownfield and green field exploration targets have been received. The exploration team has initiated its first phase of the 2023-2024 mine plan. This includes extraction of high-grade material in line with previous grades in excess of 13% Zn. There are currently 70 Company employees on site and another 25 contract workers. The Company is fortunate to have inherited a strong workforce after the acquisition closed and is adding positions in specific areas centred around engineering, exploration and day-to-day operations”.
  • Pan American Silver Corp., announced mineral resource and mineral reserves as at June 30, 2023 at their Mexican mine operations and advanced mining projects (Mineral resources are reported exclusive of mineral reserves). At La Colorada, Zacatecas, the company reported measured resources of 0.7M with grades of 153 g/t Ag and 0.13 g/t Au for a total  of 3.6M Oz Ag and 3K Oz Au contained; indicated resources of 2.5M tonnes with grades of 182 g/t Ag and 0.19 g/t Au for a total of 14.6M Oz Ag and 15K Oz Au contained; and inferred resources of 14.7M tonnes with grades of 174 g/t Ag and 0.2 g/t Au for a total of 82.2M Oz Ag and 43K Oz Au contained. At La Colorada Skarn, Zacatecas, it reported indicated resources of 95.9M tonnes with a grade of 31 g/t Ag for a total of 94.4M Oz Ag contained and inferred resources of 147.8M tonnes with a grade of 28 g/t Ag for a total of 132.9M Oz Ag contained. At Dolores, Chihuahua, Pan American reported measured resources of 5.5M with grades of 23 g/t Ag and 0.33 g/t Au for a total of 4M Oz Ag and 57.7K Oz Au contained; indicated resources of 0.7M tonnes with grades of 70 g/t Ag and 1.35 g/t Au for a total of 1.5M Oz Ag and 28.7K Oz Au contained; and inferred resources of 1.3M tonnes with grades of 40 g/t Ag and 1.18 g/t Au for a total of 1.7M Oz Ag and 50.3K Oz Au contained. At La Bolsa, Sonora, the company reported measured resources of 10.8M tonnes with grades of 10 g/t Ag and 0.7 g/t Au for a total of 3.5M Oz Ag and 242.8K Oz Au contained; indicated resources of 10.6M tonnes with grades of 8 g/t Ag and 0.54 g/t Au for a total of 2.7M Oz Ag and 184.3K Oz Au contained; and inferred resources of 13.7M tonnes with grades of 8 g/t Ag and 0.51 g/t Au for a total of 3.3M Oz Ag and 224.6K Oz Au contained. The company also reported mineral reserves as at June 30, 2023. At La Colorada, Zacatecas, it reported proven reserves of 5M tonnes with grades of 296 g/t Ag and 0.21 g/t Au for a total of 47.2M Oz Ag and 33.8K Oz Au contained; and probable reserves of 4.2M tonnes with grades of 292 g/t Ag and 0.19 g/t Au for a total of 39.1M Oz Ag and 25.3K Oz Au contained. At Dolores, Chihuahua, Pan American reported proven reserves of 6.3M tonnes with grades of 17 g/t Ag and 0.53 g/t Au for a total of 3.4M Oz Ag and 108.6K Oz Au contained, and probable reserves of 1.3M tonnes with grades of 24 g/t Ag and 0.53 g/t Au for a total of 1M Oz Ag and 22.1K Oz Au contained.

ON DEALS AND CORPORATE ISSUES

  • McEwen Mining Inc., announced the appointment of a new member to its Board of Directors (El Gallo mine complex, Sinaloa).
  • Sierra Metals Inc., announced the appointment of a new member to its Board of Directors as an independent non-executive Director (Bolivar Mine, Chihuahua).
  • Discovery Silver Corp., announced key appointments that strengthen the company’s Board of Directors, and also the permitting and technical teams. These include: an Independent Director, 2 Advisors to the Board, a Director, Corporate Affairs, Mexico, a Vice President Mineral Processing, and a Corporate Secretary & Manager Administrative Services (Cordero project, Chihuahua).
  • Aloro Mining Corp., announced that it has cancelled the option agreement with Cuesta del Cobre S de R.L. de C.V., to purchase the Quitovac Mine project in Sonora. After conducting further due diligence and considering the newly proposed changes to the Mining Law by the current Government of Mexico and the difficulties in obtaining a surface use agreement from the Quitovac Comunidad, Aloro feels that it is not in the Company’s best interest to proceed.

ON SOCIAL RESPONSIBILITY

  • Orla Mining Ltd., released its inaugural sustainability report. Highlights include that 25% Orla´s corporate goals were environmental, social, and governance (ESG)-linked, all of which were achieved; 100% of Orla executives and managerial-level employees were evaluated against ESG performance; achieved a respectable health and safety record, with a lost time injury frequency rate of 1.49 across their sites; generated USD $5.8M in community economic contributions at Camino Rojo, Zacatecas, including salaries, local procurement, land leases and investments in local  infrastructure; achieved an emissions level of 0.19 tonnes of CO2 equivalent per ounce of gold equivalent produced at Camino Rojo, establishing the operation as a global leader on this metric; achieved 0.15 m3/t of processed ore water intensity, with zero water discharge (100% of water reused and recycled), at Camino Rojo; developed the “Towards 2030 Sustainability Strategy” and set ESG targets to build a more sustainable, resilient and inclusive business, anchored around the goal of accelerating value creation and net-positive benefits for stakeholders.

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

On the picture above, silica + alunite in a hydrothermal breccia from an epithermal system in a project in Chihuahua, Mexico.  Photo by Miguel A Heredia.