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.
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.
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.
By Miguel A Heredia During the 32nd week of the year (August 07th to August 13th, 2023), at least 24 press releases were announced by companies working in Mexico, and 3 news published by the media, with twelve five communicating production and financial results, four commenting on Mexican issues, four disclosing deals and corporate issues, four announcing financing issues, two reporting resources and development of their properties,, and one informing on exploration results. ON MEXICO ISSUES, The union leader Carlos Pavón Campos achieved a milestone by obtaining an injunction against the limit on the payment of utilities in the mining sector. The economic impact of the Peñasquito, the largest gold mine in Mexico due to the stoppage of activities is over USD $220M. Heliostar and Coeur Mining reported the best drilling intercepts in Mexico on the second week of August, 2023. ON EXPLORATION, In Chihuahua, Kingsmen released results from 21 surface samples collected on the southeast portion of its Las Coloradas project. ON MINING, Aura Minerals reported Q2, 2023 production and financial results and provided 2023 production guidance (Aranzazu Mine, Zacatecas). Avino reported Q2, 2023 production and financial results from its Avino mine in Durango. Endeavour reported Q2, 2023 production and financial results from their Mexican mine operations. Gatos Silver reported Q2, 2023 financial results from its Cerro Los Gatos mine in Chihuahua, where it owns 70% interest. GoGold announced Q2, 2023 financial results (Parral Tailings project, Chihuahua). Golden Minerals reported Q2, 2023 financial results. Argonaut reported Q2, 2023 production and financial results from their Mexican mine operations. Starcore reported Q1, 2023 production results from its San Martin Mine in Queretaro. SilverCrest reported Q2, 2023 production and financial results from its Las Chispas mine in Sonora. Santacruz Mining reported Q2, 2023 production results from its Zimapan Mine in Hidalgo. Fortuna reported Q2, 2023 production and financial results from its San Jose Mine in Oaxaca. ON FINANCING, SilverCrest announced that it filed and received acceptance from the Toronto Stock Exchange (TSX) for a notice of intention to make a normal course issuer bid (Las Chispas Mine, Sonora). GR Silver closed the first tranche of a non-brokered private placement for gross proceeds of $329,875 (Plomosas project, Sinaloa). DynaResource announced that it has entered into a stock purchase agreement with Ocean Partners, under which the company issued 1M shares of common stock to Ocean Partners in exchange for USD $5M (San Jose de Gracia property, Sinaloa). Galore announced that it has entered into a loan agreement with a dedicated arm’s length shareholder of Galore (Dos Santos project, Zacatecas). ON RESOURCES AND DEVELOPMENT, Heliostar reported results from four holes drilled at its Ana Paula project in Guerrero. Coeur provided an update on the exploration program at its Palmarejo project in Chihuahua. ON DEALS AND CORPORATE ISSUES, US Antimony announced that a live webcast of a new company investor presentation will be given by Chairman of the Board (Los Juarez project, Qro). Argonaut appointed a new member to its Board of Directors (San Agustin Mine, Durango). Capitan Silver Corp., announced results from its annual and special meeting of shareholders (Cruz de Plata project, Durango). Santacruz announced management changes (Zimapan Mine, Hidalgo). ON SOCIAL RESPONSIBILITY, no relevant news. ON MEXICO ISSUE
The union leader Carlos Pavón Campos achieved a milestone by obtaining an injunction against the limit on the payment of utilities in the mining sector. “As part of the payment of utilities for 2022, we should have received around MXP $900M, and only MXP $300M were distributed, where were MXP $600M left, if the Constitution indicates that 10% must be paid of the profits that the companies obtained?”, expressed Carlos Pavón Campos. In an interview, Pavón Campos expressed that this “amparo” could set a precedent, since it is the way for all the workers who were affected in the payment of utilities to receive what corresponds to them, and not the three months of salary or the average of the last three years as established by the Federal Labor Law.
The economic impact of the Peñasquito, the largest gold mine owned by Newmont in Mexico due to the stoppage of activities is over USD $220M. Experts are concerned about the repercussions that the conflict will have for the company, the industry and for metal production, and also for the lack of dialogue between the company and the workers of the National Mining Union. The strike began on June 7 after more than 2,000 workers from Section 304 of the National Mining Union accused the company of violating the collective labor contract, of failing to comply with the Federal Labor Law, the T-MEC and the conventions of the International Labor Organization, but also omitting the full payment of profits to the workers. Newmont announced that is willing to negotiate with the Mining Union to lift the strike in Peñasquito. The gold mining company also denied having threatened the workers who are on strike, as denounced by section 34 of the National Mining Union. The gold-producing company assured that they have maintained constant communication with unionized and non-unionized workers to let them know the status of the negotiations they have had with the Union representatives. Finally, the company reiterated that it has complied in time and form with the payment of the PTU corresponding to fiscal year 2022 according to the audited financial statements.
Heliostar Metals Ltd., and Coeur Mining Inc., reported the best drilling intercepts in Mexico on the second week of August, 2023. Details are shown in the table below:
ON EXPLORATION
Kingsmen Resources Ltd., released results from 21 surface samples collected along the Soledad and Soledad II structures, on the southeast portion of its Las Coloradas project in Chihuahua. Four samples returned >300 g/t Ag; two returned > 200 g/t Ag; and one returned > 100 g/t Ag. The company reported that prospecting and sampling will continue on the property. Las Coloradas is located in the Parral mining district of the Central Mexican Silver Belt.
ON MINING
Aura Minerals Inc., reported Q2, 2023 production and financial results and provided a 2023 production guidance for its Aranzazu Mine in Zacatecas (currency is reported in US dollars). The company produced during the second quarter of the year 25,192 Gold Equivalent Ounces (GEO). It also provided an updated 2023 production guidance. Aura plans to produce between 104K-112K GEO at cash and AISC of $783-842 and $1,025-1,101 per GEO sold respectively, considering actual current prices, between 105K-114K GEO at cash and AISC of $710-769 and $936-1,012 per GEO sold respectively, considering actual constant prices, and between 101K-116K GEO at cash and AISC of $685-$788 and $898,1,033 per GEO sold respectively, considering previous current prices. For constant metal prices in the previous guidance, the company considered a Cu price of $3.60/Lb, a Au price of $1,740/Oz, and a Ag price of $22.50/Oz, while for current prices it considered a Cu price of $3.90/Lb, Au price of $1,925/ Oz, and a Ag price of $23.20/Oz.
Avino Silver & Gold Mines Ltd., reported Q2, 2023 production and financial results from its Avino mine in Durango (currency is reported in US dollars). The company milled 157,371 tonnes to produce 232.4K Oz Ag, 1,520 Oz Au, and 1.44M Lb Cu (587.3K Oz AgEq) at cash and AISC of $16.33 and $23.06 per AgEq payable Oz sold. The company reported revenues of $9.2M; mine operating income of $1M; net of none-cash costs of sales of $1.8M; net income of $1.1M or $0.01 per share; EBIDTA of $0.4M; adjusted earnings of $27K; and cash flow from operations of $503K. Avino also reported cash as per June 30, 2023 of $1.2M and a working capital of $4.6M.
Endeavour Silver Corp., reported Q2, 2023 production and financial results from their Mexican mine operations (currency is reported in US dollars). The company produced 1.49M Oz Ag and 9,819 Oz Au (2.3M Oz AgEq) at a cash and AISC of $13.52 and $22.15 per Oz payable silver respectively. Endeavour reported revenue of $50M from the sale of 1.3M Oz Ag and 9,883 Oz Au at average realized price of $24.13 per Oz Ag and $1,967 per Oz Au; a cash flow of $11.1M in operating cash flow before working capital changes and $18.8M in mine operating cash flow before taxes; a net loss of $1.1M or $0.01 per share; an adjusted earnings of $2.1M after adjusting for a $3.2M change in the fair value of investments; and a cash position of $43.5M and working capital of $78.2M.
Gatos Silver Inc., reported Q2, 2023 financial results from its Cerro Los Gatos mine in Chihuahua, where it owns 70% interest (currency is reported in US dollars). The company milled 265,342 tonnes of 265 g/t Ag, 4% Zn, 1.85% Pb, and 0.26 g/t Au to produce 2M Oz Ag, 14.8M Lb Zn, 9.7M Lb Pb, and 1,200 Oz Au (3.3M Oz AgEq) at co-product and by-product cash cost of $12.72 and $7.10 per Oz of payable AgEq respectively, and co-product and by-product AISC of $17.55 and $14.32 per Oz of payable AgEq respectively. Los Gatos reported (100% basis) revenue of $58.3M; a cost of sales of $25.8M; a cash flow from operations of $34.3M, a net income of $0.7M; a sustaining capital of $13.1M; an EBITDA of $27.5M, a free cash flow of $19.7M; and a net loss of $3.6M or $0.05 per share.
GoGold Resources Inc., announced Q2, 2023 financial results (currency is reported in US dollars) from its Parral Tailings project in Chihuahua. GoGold produced 203,894 Oz Ag, 1,512 Oz Au and 302,400 Lb Cu (375,112 Oz AgEq). The company reported revenue of $8.5M on the sale of 360K Oz AgEq at a realized per Oz Ag of $21.29 at adjusted cash and AISC of $15.54 and $20.85 respectively per Oz AgEq; a cash of $98.7M; a net income of $2.6M including interest income of $1.5M.
Golden Minerals Company reported its Q2, 2023 financial results (all figures are in US dollars). The company produced at its Rodeo mine in Durango, 1,828 Oz Au and 7,742 Oz Ag at average realized prices of $1,976 per Oz Au and $24.34 per Oz Ag. Golden reported revenue of $5M which includes Rodeo´s sale of metals, sales of Velardeña concentrates, and sales of Rodeo slag material; a net operating margin of $1.1M; cash and equivalents balance as of June 30, 2023 of $3.4M; zero debt and a net loss of $1.5M or $0.21 per share. At June 30, 2023 the company reported current assets of $8.6M including cash and cash equivalents of approximately $3.4M, and account payable and other current liabilities of $5.4M.
Argonaut Gold Inc., reported Q2, 2023 production and financial results from their Mexican mine operations (all dollar amounts are expressed in US dollars). At La Colorada Mine, Sonora, Argonaut reported that it sold 5,680 Oz Au; a cost of sales of $8.1M; a cost of sales per Oz Au of $1,425; a cash cost of $6M, and a cash and AISC of $1,059 and $1,217 per Oz Au sold respectively. At San Agustin Mine, Durango, the company sold 12,774 Oz Au; a cost of sales of $21.9M; a cost of sales per Oz Au of $1,717; a cash cost of $17.7M, and a cash and AISC of $1,386 and $1,474 per Oz Au sold respectively. On August 4, 2023, the company signed an agreement to acquire the necessary land to complete mining of the current reserve base at the San Agustin Mine. Subject to receipt of the necessary permit, expected later this year, mining is expected to continue into 2025. At El Castillo Mine, Durango, Argonaut sold 5,502 Oz Au; a cost of sales of $8.54M; a cost of sales per Oz Au of $1,553; a cash cost of $7.44M, and a cash and AISC of $1,353 per Oz Au sold.
Starcore International Mines Ltd., reported Q1, 2023 production results from its San Martin Mine in Queretaro. The company milled 57,700 tonnes of 1.13 g/t Au and 14 g/t Ag (1.92 g/t AuEq) at metallurgical recoveries of 83.99% and 45.82% respectively, to produce 1,918 Oz AuEq.
SilverCrest Metals Inc., reported Q2, 2023 production and financial results from its Las Chispas mine in Sonora (all amounts are presented in US dollars). SilverCrest mined 74,400 tonnes and milled 107,900 tonnes of 4.84 g/t Au and 449 g/t Ag with metallurgical recoveries of 96.4% and 97.9% respectively, to recover 16,550 Oz Au and 1.53 M Oz Ag. The company sold a total of 13,400 Oz Au and 1.45M Oz Ag at average realized prices of $1,991 per Oz Au, and $24.36 per Oz Ag. SilverCrest reported revenue of $62M; a cost of sales of $23.7M resulting in mine operating income of $38.3M; an income of $23.7M or $0.16 per share, inclusive of an $8.6M ($0.06 per share) unrealized foreign currency loss; an increased cash balance by $7.6M and bullion holdings by $3.6M during the quarter, after, sustaining capital at Las Chispas of $10.1M and retiring $25M of debt; cash flow from operating activities before changes in non-cash working capital items of $47.5M or $0.32 per share; and cash costs of $7.39 per Oz AgEq sold and all-in sustaining cost (AISC) of $12.70 per Oz AgEq sold based on accelerated spend towards exploration and for sustaining capital to create operational flexibility. The company ended the quarter debt free with treasury assets totaling $59M (cash of $53.4M and gold and silver bullion of $5.6M). Access to an undrawn $70M revolving credit facility remains. In addition, the company provided production guidance for H2, 2023, it expects to produce 4.8 to 5.2M Oz AgEq at cash and AISC of $7-8.50 and $13.75-15.50 per Oz AgEq sold respectively. For the full 2023 year the SilverCrest expects to produce 9.8-10.2 M Oz AgEq at cash and AISC of $7.50-8.50 and $12.75-13.75 per Oz AgEq respectively.
Santacruz Silver Mining Ltd., reported Q2, 2023 production results from its Zimapan Mine in Hidalgo. The company processed 171,668 tonnes of 69 g/t Ag, 0.67% Pb, 2.25% Zn, and 0.33% Cu with metallurgical recoveries of 71%,74$,71%, and 53% respectively to produce 271.1K Oz Ag, 1.9M Lb Pb, 6.14M Lb Zn, and 665.3K Lb Cu (878.8K Oz AgEq).
Fortuna Silver Mines Inc., reported Q2, 2023 production and financial results from its San Jose Mine in Oaxaca (all amounts are expressed in US dollars). The company milled 194,887 tonnes of 168 g/t Ag and 1.02 g/t Au at metallurgical recoveries of 91% and 90% respectively, to produce 957.3K Oz Ag and 5,778 Oz Au. Fortuna sold 942.7K Oz Ag and 5,695 Oz Au at realized prices of $24.09/Oz Ag and $1,973/Oz Au. The company reported a cash cost of $102.77/tonne and a cash and AISC of $15.93 and $24.07 per Oz AgEq respectively. It also reported sustaining expenditures of $3.6M; non-sustaining expenditures of $524K; and brownfield expenditures of $788K.
ON FINANCING
SilverCrest Metals Inc., announced that it filed and received acceptance from the Toronto Stock Exchange (TSX) for a notice of intention to make a normal course issuer bid pursuant to TSX requirements permitting the company to purchase up to 7,361,563 common shares of the company, representing approximately 5% of SilverCrest’s total issued and outstanding common shares. As of August 9, 2023 SilverCrest had 147,231,264 issued and outstanding common shares (Las Chispas Mine, Sonora).
GR Silver Mining Ltd., closed the first tranche of a non-brokered private placement. The company issued 6,597,500 units for gross proceeds of $329,875. GR Silver paid $8,100 and issued a total of 162,000 warrants as finder´s fees. Each finder’s warrant is exercisable for one common share at a price of $0.08 for two years (Plomosas project, Sinaloa).
DynaResource Inc. announced that it has entered into a stock purchase agreement with Ocean Partners UK Limited, under which the company issued 1M shares of common stock to Ocean Partners in exchange for USD $5M. Ocean Partners, through its 100% owned subsidiary in Mexico – MK Metals Trading (MK), and Dyna Mexico have formalized the extension of their commercial offtake agreement through December 31, 2026, and with revision of the next terms: OP / MK agreed to Increase the Advance Credit Line available to Dyna Mexico to USD $17.5M; OP / MK agreed to provide an Option to convert the Advance Credit Line into a Revolving Credit Line, repayable in 12 months, in maximum amount of USD $10M. The Company and Dyna Mexico plan to utilize the funds received from Ocean Partners to further expand and increase test mining and milling activities at San Jose de Gracia project in Sinaloa (SJG), to continue exploration drilling and related exploration activities at SJG, and for general corporate purposes.
Galore Resources Inc., announced that it has entered into a loan agreement with a dedicated arm’s length shareholder of Galore. The lender has provided the company with a cash loan of USD $20K. The Loan shall bear an interest rate of 9% per annum compounded quarterly, due for repayment on August 3, 2024. The funds will be used for obtaining assay results from the company’s most recent drill program at its Los Gemelos property within its Dos Santos project, Zacatecas.
ON RESOURCES AND DEVELOPMENT
Heliostar Metals Ltd., reported results from four holes drilled at its Ana Paula project in Guerrero. Drilling highlights include hole AP-23-300 with 32.1 g/t Au over 2.7m, plus 7.96 g/t Au over 72m, including 31.8 g/t Au over 9.5m; hole AP-23-302 with 5.01 g/t Au over 51.8m, including 11.6 g/t Au over 4.72m, plus 2.63 g/t Au over 17.6m, including 21.4 g/t Au over 1.36m; and hole AP-23-299 with 6.95 g/t Au over 38m, including 15.8 g/t Au over 11m, including 23.3 g/t Au over 6m. These four holes continue to assess mineralization up- plunge of the High Grade Panel at the core of Ana Paula.
Coeur Mining Inc., provided an update on the exploration program at its Palmarejo project in Chihuahua. Drilling at Hidalgo encountered the highest gold grades ever at Palmarejo and extended high-grade mineralization along strike to the NW in the direction of the Palmarejo processing facilities. Hidalgo comprises three individual veins: Hidalgo, San Juan, and Libertad. Drilling highlights at Hidalgo Vein include holes HGDH_118 with 15.1m of 2.8 g/t Au and 265 g/t Ag; hole HGDH_127 with 10.6m of 3.4 g/t Au and 248 g/t Ag; hole HGDH_137 with 5.8m of 41.1 g/t Au and 496 g/t Ag; and hole HGDH_151 with 8.7m of 3.0 g/t Au and 142 g/t Ag. Drilling highlights at San Juan include hole HGHD_145 with 5.6m of 3.1 g/t Au and 240 g/t Ag. Drilling highlights at Libertad include hole HGDH_149 with 7.5m of 3.0 g/t Au and 170 g/t Ag. Coeur also reported that the infill and expansion drilling program completed at La Nacion and Zapata Deposits has been successful. Notable results from the infill drilling program include holes LBDH_237 with 2.2m of 1.51 g/t Au and 177 g/t Ag); Hole LBDH_239 with 3.3m of 1.71 g/t Au and 514 g/t Ag; hole DC3-ZPA-0018 with 3.8m of 8.1 g/t Au and 685 g/t Ag; hole DC3-ZPA-0042 with 5.7m of 2.02 g/t Au and 131 g/t Ag; and hole DC3-ZPA-0048 with 7.4m at 1.98 g/t Au and 86 g/t Ag, plus 2.2m grading 4.16 g/t Au and 307 g/t Ag)
ON DEALS AND CORPORATE ISSUES
US Antimony Corporation announced that a live webcast of a new company investor presentation will be given by Chairman of the Board (Los Juarez project, Qro).
Argonaut Gold Inc., appointed a new member to its Board of Directors, effective August 10, 2023 (San Agustin Mine, Durango).
Capitan Silver Corp., announced results from its annual and special meeting of shareholders (Cruz de Plata project, Durango).
Santacruz Silver Mining Ltd., announced that Carlos Silva Ramos is stepping down from his role as CEO and Director due to personal reasons (Zimapan Mine, Hidalgo).
ON SOCIAL RESPONSIBILITY
No relevant news.
Content like what you have just read can be seen at https://gambusinoprospector.com/ and at LinkedIn’s Mexico Mineral Exploration Group.
On the picture above, breccia cemented by tourmaline in a porphyry copper project in Chihuahua, Mexico. Photo by Miguel A Heredia.
During the 31st week of the year (July 31st to August 6th, 2023), 25 companies working in Mexico posted news releases. Five companies informed on exploration work at its properties and seven more reported second quarter 2023 results. Two companies informed on private placements, while one declared a dividend payment. Five companies informed on technical reports, updated mineral resources, drilling results, mining plans and mine preparations on their projects. One company sold the royalties in some properties and one other is reviewing exploration opportunities in South America. ON MEXICO ISSUES, one company made clear commitment to get projects beyond Mexico, the country new mining policies showing its might. The Union – Grupo Mexico conflict in Sombrerete is to be solved in Mexico, not under the T-MEC, according to the federal government. Income tax returns from the mining industry fell by 35% on the first semester 2023. ON EXPLORATION, in Sonora, Prismo Metals mobilized a drill rig to Los Pavitos; Silver Spruce Resources resumed work at Diamante. In Chihuahua, Kootenay Silver updated on work at Columba. In Sinaloa, Prismo Metals updated on the drilling at Palos Verdes. ON MINING, Fresnillo PLC, Starcore International Mines, Capstone Copper, Equinox Gold, First Majestic Silver, Torex Gold and Orla Mining released production results for Q2 2023. ON FINANCING, Goldgroup Mining issued shares on a convertible loan. First Majestic Silver declared the payment of a dividend per share. Colibri closed the first tranche of a private placement. ON RESOURCES AND DEVELOPMENT, SilverCrest Metals released a new technical report with updated mineral resources and a new mine plan for Las Chispas in Sonora. Impact Silver updated on work to refurbish the Plomosas mine in Chihuahua. GoGold Resources released drilling results from Los Ricos South in Jalisco. Discovery Silver released drilling results from the FS program at Cordero, in Chihuahua. Heliostar Metals reported on the re-scoping study at Ana Paula, in Guerrero. ON DEALS AND CORPORATE ISSUES, Endeavour Silver entered into an agreement to sell its royalty on the Cozamin property. Xali Gold is to review exploration opportunities in South America. ON SOCIAL RESPONSIBILITY, no relevant news. ON MEXICO ISSUES
Editor comments. One more company working exclusively in Mexico announced plans to look for projects in other countries. No one can say the policies imposed by the current administration are not producing the results sought, even if its full weight is to be felt in the years to come.
The federal government directed that the labor conflict between Grupo Mexico and a Union (Sindicato Nacional de Trabajadores Mineros, Metalúrgicos, Siderúrgicos y Similares de la República Mexicana) in the Sombrerete mine in Zacatecas, has to be solved in Mexican courts, out of the T-MEC rapid response labor mechanism.
Income tax returns fell 34.6% year on year on the first semester of 2023, the biggest drop in 20 years. On VAT (IVA) and special tax on products and services (IEPS), the mining sector had refunds for $134 M ($2,275 M pesos) and $6.5 M ($110 M pesos) respectively.
ON EXPLORATION
Kootenay Silver Inc. informed two of three surface access agreements needed have been now signed, and the third one is in the final negotiation stage at its Columba project in Chihuahua.
Prismo Metals Inc. announced the mobilization of a drill rig for the planned 2,500 m program to its Los Pavitos project in Sonora. Assays for the last four trenches dug at the project were published. Highlighted intervals comprise 1.0 m @ 3.98 gpt Au, 5 gpt Ag; 2.80 m @ 1.18 gpt Au, 16 gpt Ag.
Prismo Metals Inc. updated on the drilling program at its Palos Verdes project in Sinaloa. Ten holes for a total of 2,035 m have been completed on the 2,500 m program, with the eleventh hole in progress and three holes remaining. On a second press release the company announced the expansion of the program by a joint committee by Prismo and Vizsla, to 3,600 m “in ten holes to be completed in two phases”.
Silver Dollar Resources Inc. submitted a drilling permit application for the next phase of drilling at the Nora project in Durango. “The geological setting is a Tertiary-aged volcanic flow-dome complex. Gold-silver mineralization is hosted within two structurally controlled epithermal veins, Candy and Nora…. Only 500 m of the potential 3-km strike of the Candy vein structure has been drill tested, and only to a depth of 250 m below surface”.
Colibri Resource Corp. and partner Silver Spruce Resources Inc. announced the resumption of field works at the Diamante project in Sonora. Stream sediment sampling, geological mapping and rock chip sampling are some of the planned activities.
Fresnillo PLC. provided its Q2-2023 production results. The Company produced over 14 M Oz Ag, 152,217 Oz Au, 13,994 tonnes Pb and 25,670 tonnes Zn from its operation in Fresnillo, Saucito and Juanicipio in Zacatecas, Cienega in Durango, Herradura and Nochebuena in Sonora, and San Julian in Chihuahua.
Starcore International Mines Ltd. presented results for its fiscal year and quarter ending on April 30, 2023. During the quarter the company processed 56.8 K tonnes @ 1.45 gpt Au, 11.2 gpt Ag, recovering 86.1% Au, 48.3% Ag, to produce 2,300 Oz Au, 10 K Oz Ag at its San Martin mine in Queretaro. For the year, the company produced 10,000 Oz Au, 85.4 K Oz Ag. Mine operating cash cost was $1,611 and $1,535 per AuEq Oz respectively for the quarter and full year.
Capstone Copper Corp. reported financial results for the second quarter of 2023, including figures from its Mexican operations. At Cozamin, in Zacatecas, 6.6 K tonnes Cu were produced at cash cost $1.63 per Lb Cu.
Equinox Gold Corp. announced its second quarter 2023 financial and operating results, without disclosing figures per project.
First Majestic Silver Corp. announced unaudited consolidated financial results for the second quarter 2023. During the period the company produced 2.63 M Oz Ag, 40,658 Oz Au, or 5.97 M Oz AgEq.
Torex Gold Resources Inc. reported Q2 2023 and operational results. During the period, the company mined 11.77 M tonnes from the open pit (13,293 tpd), 174 K tonnes from underground (1,913 tpd) at the Limon Guajes mine in Guerrero, of which 1.21 M tonnes were processed to produce 107,507 Oz Au at cash cost $848 per Oz Au and an all-in sustaining cost of $1,308 per Oz Au. Torex maintains its 2023 guidance to produce 440 K to 470 K Oz Au. The quarter closed with net cash of $273.8 M.
Orla Mining Ltd. announced the results for the second quarter of 2023. At the Camino Rojo Oxide mine in Zacatecas, 29,058 Oz Au were produced at an AISC of $696 per Oz Au. The pit development is being hindered by SEMARNAT lateness to authorize permits. Cash balance at the end of the period was $114.5 M.
ON FINANCING
Goldgroup Mining Inc. announced the issuance of 29.05 M shares upon conversion of the company’s outstanding convertible loan with a face value of $2.16 M (Cerro Prieto, Sonora).
First Majestic Silver Corp. declared a cash dividend of $0.0051 per common share for the second quarter of 2023 (San Dimas, Durango).
Colibri Resource Corp. closed the first tranche of the previously announced non-brokered private placement of “Units”, for gross proceeds of US$487 K. “Each Unit is comprised of: (i) US$1,000 principal amount of 10% secured convertible debentures (the “Debentures”) issued by the Company 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” (Diamante, Sonora).
ON RESOURCES AND DEVELOPMENT
SilverCrest Metals Inc. announced results from an updated independent technical report for the Las Chispas operation in Sonora. The report describes a 1,200 tpd operation of ore averaging 4.02 gpt Au, 396.1 gpt Ag, recovering 98.0% Au, 97.0% Ag, to produce 57 K Oz Au, 5.5 M Oz Ag per year in an operation with a mine life (LOM) of 8 years, to generate a post-tax net present value of $549 M. Cash cost is estimated at $7.84 per Oz AgEq and an AISC of $11.98 per Oz AgEq. “The Mineral Resource Estimate model was updated to reflect: narrower veins located over a larger area, thus requiring increased underground development, increased constraints on geologic, statistical, and geostatistical modelling parameters resulting in reductions in resources mainly in Babicanora Main and Babicanora Norte Main veins and increased resources in the Babi Vista Vein, including the Babi Vista Splay. Additionally, there is an increase in the number of Mineral Resource veins and the veins are more widely dispersed. The Updated Inferred Mineral Resource Estimate is reduced from the 2021 FS due to conversion to M&I Mineral Resources and application of the same stricter constraints as applied to M&I Mineral Resources”.
Impact Silver Corp. provided an update on the recently acquired Plomosas mine in Chihuahua. The mill refurbishment is in the final stages, with testing and modification of the plant to start in late summer to ramp up production to the 200 tpd design capacity. The company has applied for an expansion of the current tailings pond while planning and permitting of the next one takes place. Refurbishment of ventilation, electrical and lighting systems are ongoing, and mine planning is being completed for 2023-2024. The current workforce is comprised by 70 company workers and 25 contract workers.
GoGold Resources Inc. announced drilling results from Los Ricos South project in Jalisco. The highlighted core length intercepts comprise 30.2 m @ 1.68 gpt Au, 278 gpt Ag (including 9.70 m @ 4.54 gpt Au, 769 gpt Ag); 34.8 m @ 1.37 gpt Au, 132 gpt Ag (including 7.0 m @ 4.68 gpt Au, 440 gpt Ag); 32.70 m @ 1.19 gpt Au, 124 gpt Ag; 11.7 m @ 0.93 gpt Au, 387 gpt Ag (including 1.40 m @ 5.36 gpt Au, 2,780 gpt Ag); 23.10 m @ 0.80 gpt Au, 143 gpt Ag; 28.10 m @ 0.71 gpt Au, 129 gpt Ag. “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…… It is expected that these holes will be included in an updated Resource to be released by the end of the summer”.
Discovery Silver Corp. released results from feasibility study (FS) drilling at its Cordero project in Chihuahua. Highlighted core length intervals of the reserve and expansion drilling comprise 62.10 m @ 0.25 gpt Au, 48 gpt Ag, 0.6% Pb, 0.6% Zn; 45.0 m @ 0.24 gpt Au, 66 gpt Ag, 0.5% Pb, 0.7% Zn; 51.7 m @ 0.19 gpt Au, 51 gpt Ag, 0.6% Pb, 0.9% Zn; 15.10 m @ 0.08 gpt Au, 278 gpt Ag, 3.1% Pb, 2.9% Zn; 12.4 m @ 0.19 gpt Au, 168 gpt Ag, 1.4% Pb, 3.1% Zn; 37.4 m @ 0.09 gpt Au, 79 gpt Ag, 1.1% Pb, 1.5% Zn; 38.5 m @ 0.17 gpt Au, 104 gpt Ag, 0.5% Pb, 0.3% Zn; 82.1 m @ 0.03 gpt Au, 33 gpt Ag, 0.6% Pb, 0.9% Zn. Discovery has now drilled 52,000 m in 164 holes as part of the FS drill program. Incoming “property-wide drilling will initially target large chargeability anomalies in the Sanson area (approximately 3.5 km to the northeast of Cordero) and skarn targets at depth in the northeast of the deposit. Currently, 9,000m of drilling is planned in 2023”.
Heliostar Metals Ltd. reported progress on re-scoping of the current pre-feasibility study (PFS) at the Ana Paula project in Guerrero. “The Company is evaluating three underground mining scenarios, with different cut-off grades and mining rates, that are being advanced for more detailed evaluation and comparison…… The Company will refine the options upon receipt of an updated resource model and metallurgical program results, both of which rely on drilling completed in 2023. Metallurgical results will be reported in October and an updated resource model is expected in November 2023”.
ON DEALS AND CORPORATE ISSUES
Endeavour Silver Corp. entered into an agreement with Gold Royalty Corp. to sell all of its interest in a 1% Cozamin Royalty for a total consideration of US$7.5 M, payable in cash. “The Royalty applies to two concessions (Calicanto and Vicochea) on Capstone’s Cozamin copper-silver mine, located 3.6 kilometres north-northwest of Zacatecas City in state of Zacatecas, Mexico”.
Xali Gold Corp. has decided to review exploration opportunities in South America, including Peru. The company updated on its Mexican projects: Exploration at El Oro in Estado de Mexico has been put on hold, whilst Sun River Gold (who has an option in the El Oro mine tailings) has been advancing permitting and providing some cash flow through advances on the Net Profit Interest due once in production. “Negotiations are also underway with Mexican groups regarding both upgrades and financing commitments to make the San Dieguito de Arriba (“SDA”) Plant in Western Mexico fully operational. Xali Gold terminated the previously announced agreement (see January 18, 2023 News Release) with Minera Cinco Reales S.A. de C.V. (“MCR”) earlier this month due to MCR’s lack of progress”.
ON SOCIAL RESPONSIBILITY
Aura Minerals Inc. released its 2022 sustainability report, with a 62% reduction in frequency rates of accidents, 92% of water recycling and establishing a decarbonization plan with the goal of reducing GHG emissions by 5% from 2020 levels by 2023.
On the image below: Silicified vein ridges on a project in the Sonoran Desert. Picture by Jorge Cirett.
