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

By Jorge Cirett                                             

During the 13th week of the year (March 27th to April 2nd, 2023), 18 companies working in Mexico released news on their properties. Two companies informed on exploration on their properties, three companies informed on Q4 and year 2022 financial and operational results. Two companies closed partial or complete share placements. Two companies filed technical reports on their properties, two more released drilling results on their advanced properties and two more updated mineral resource estimates for their properties. Two companies announced the completion of the acquisition process on mining projects. ON MEXICO ISSUES, the Mexican president sent an initiative to change the Mining Law that is likely to strongly impact the mineral exploration industry. ON EXPLORATION, In Sonora, Tocvan Ventures provided an update on bulk sampling at its Pilar property; Reyna Gold is to drill its La Gloria project. ON MINING, Mag Silver, Sierra Metals and Avino Silver released Q4 2022 financial reports. ON FINANCING, Silver Spruce closed a private placement for $1.13 M, Golden Tag closed the first tranche of a non-brokered private placement. ON RESOURCES AND DEVELOPMENT, Alamos Gold and Sonoro Gold filed NI-43-101 technical reports on the Mulatos and Cerro Caliche properties respectively, both in Sonora. GoGold Resources released drilling results from Los Ricos South project in Jalisco. Oroco Resource informed on drilling at the Santo Tomás project in Sinaloa. Argonaut Gold updated on mineral resources at five of its properties in Mexico. Aura Minerals reported on mineral reserves and resources at Aranzazu, in Zacatecas. ON DEALS AND CORPORATE ISSUES, Argonaut Gold completed the sale of the Ana Paula project in Guerrero to Heliostar Metals. Sierra Metals completed the acquisition of La Guitarra project, in Estado de Mexico, from First Majestic Silver. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • The president of México, Andrés M. López Obrador sent to Congress an initiative to reform the Mining Law, National Water Law, Ecological Equilibrium Law and Environmental Protection and the General Law for Prevention and Integral Management of Residues relating to Mining and Water Concessions. The initiative displays a heavy ideological charge on the exposition of motifs, full of propaganda epithets against the “neoliberal” current state of affairs on these matters. Any good specific proposal within the initiative is overwhelmed by the sheer amount of new rules designed for the State to have a firm grip on the industry, many of which involve granting the government power to decide when to take away a concession on flimsy grounds, raising the uncertainty level for mining investment in Mexico. Some takeaway points that drastically change how the mining industry is operating in Mexico include: The government is to perform auctions for mining concessions (no more staking). Mining activities are no longer considered to have priority over other land uses. No land expropriation on mining grounds. Social impact studies to be conducted before any exploration takes place. Public consultations with “towns”, indigenous (which by the way are auto ascribed) and afro-Mexican communities. Reduction of mining concessions rights from 50 to 15 years, that could be renewed only once (more than a few operations in Mexico have been continuous for far longer periods). Mining concessions are conditioned to water “availability” (yes, the government decides, unconstrained, when there is available water, anytime). No private transmission of mining concessions without government consent (again, absolute power to the government). Added cancellation causes include lack of report in possible harm or risks to ecological equilibrium, lack of permits, concessions or authorizations from other authorities and lack of closing programs or management of residues. The only way to obtain a concession is to be by government auction (Concurso). Limits mining concessions coverage to only one element (you have to wonder on the genius that came with this proposal). The list continues, but in a first pass reading those above come as the most likely to cause an exodus of investment in mining exploration in Mexico. Mines are to continue operating, and advanced properties are likely to continue to development, but the Mexican exploration industry is about to halt when this initiative is approved, as the government has the required number of votes secured in Congress. Dialogue between industry entities and the government should take place before this initiative is voted, because better alternatives should be sought in order to achieve a better operating mining industry. Alternative options agreed upon should both improve the effect of mining operations in communities and the environment while promoting investment, thus helping Mexico’s development as a whole.         

ON EXPLORATION

  • Tocvan Ventures Corp. provided a progress update on the first bulk sample at the Pilar project in Sonora. Over 1,200 tonnes of material have been stockpiled with the first shipments completed. Four head-grade samples averaged 6.2, 7.6, 1.3 and 7.6 gpt Au. “Diagnostic leach tests are ongoing and were collected from four trench areas and one select drill core coarse reject sample. Preliminary results from the study suggest free gold is present in the samples and has been confirmed visually by testing sieved…. Up to 1,000 tonnes of oxide-gold material will be extracted from select areas….. The information provided from the sample will be used for planning in coordination for permitting of full-scale mine and process facilities on-site at Pilar”.
  • Reyna Gold Corp. announced the mobilization to recommence a minimum of 5,500 m of diamond drilling at its 24,215 ha La Gloria property in Sonora. The program is focused on four targets: La Republicana, Western, Las Carmelitas and Main Zone. At La Republicana drilling “will test extensions to the La Republicana Main Vein, which produced 59.00m of 1.45 g/t Gold in Phase 1 drilling”, on the 1 km long vein with significant anomalies delineated by an induced polarization survey. At Western, abundant quartz veining with Au-Te high-grades are to be tested. At Las Carmelitas high Cu, Ag, Sb assays have been obtained in a large conglomerate/agglomerate system. At the Main Zone, follow-up is to test on phase-1 drilling that returned 5.5 m @ 935 gpt Ag; 7.85 m @ 3.94 gpt Au; 30.60 m @ 0.51 gpt Au.

ON MINING

  • Mag Silver Corp. announced consolidated financial results for 2022. Commissioning of the Juanicipio plant in Zacatecas commenced in early January 2023, after the entire system was connected to the national power grid in late December 2022. During the year 646.1 K tonnes were processed thorough the Fresnillo and Saucito plants, producing 8.7 M Oz Ag, 20,268 Oz Au, 4,487 tonnes Pb, 6,758 tonnes Zn, netting $132.8 M in gross profit by Juanicipio (56% Fresnillo PLC, 44% Mag Silver).  At the end of 2022 Mag Silver had 29.2 M of working capital, with no long-term debt. The company closed a $42.6 M bought deal public offering on February 2023.
  • Sierra Metals Inc. presented Q4 and year-end 2022 consolidated financial results. The company has operations in Chihuahua and Peru, but no production details by unit were presented. Sierra Metals obtained $46.2 M in revenue during the year, with an adjusted EBITDA of $13 M, a net loss of $88.3 M. The company had cash and cash equivalents of $5.1 M and negative working capital of $84.4 M. For 2023 the production guidance at Bolivar, in Chihuahua, envisions a production of 34.5 – 39.5 M Lb CuEq at cash cost $2.99 per Lb CuEq and an AISC of $5.07 per Lb CuEq. At Cusi, in Chihuahua, an undisclosed amount of silver ounces was produced at cash cost $16.77 per Oz AgEq and an AISC of $23.17 per Oz AgEq.
  • Avino Silver & Gold Mines Ltd. released consolidated financial results for Q4 and year-end 2022. During the year, the Avino mine in Durango milled 541.8 K tonnes to produce 985 K Oz Ag, 5,778 Oz Au, 6.5 M Lb Cu (or 2.65 M Oz AgEq), at cash cost $10.34 per Oz AgEq and an AISC of $17.91 per Oz AgEq. In the year the company had revenue of $44.2 M, ending the period with a $11.2 M cash balance and $8.8 M in working capital.

ON FINANCING

  • Silver Spruce Resources Inc. closed a private placement for $1.13 M in proceeds (Diamante, Sonora).
  • Golden Tag Resources Ltd. closed the first tranche of the previously announced non-brokered private placement, aiming to raise $5.7 M in aggregate gross proceeds (Don Diego and La Parrilla, Durango).

ON RESOURCES AND DEVELOPMENT

  • Alamos Gold Inc. announced the filing of a NI43-101 compliant technical report for its Mulatos property in Sonora.
  • Sonoro Gold Corp. reported the filing of a NI-43-101 compliant technical report on the mineral resource estimate at its Cerro Caliche project in Sonora. The report includes indicated resources of 19.9 M tonnes @ 0.44 gpt Au, 3.5 gpt Ag, containing 280 K Oz Au, 2.2 M Oz Ag, and inferred resources of 10.5 M tonnes @ 0.42 gpt Au, 4 gpt Ag, containing 140 K Oz Au, 1.3 M Oz Ag. The resources are amenable to a combination of open pit and heap leach extraction.
  • GoGold Resources Inc. announced drilling results from the Eagle and Main deposits at its Los Ricos South project in Jalisco. Highlighted core length intervals comprise 23.3 m @ 7.07 gpt Au, 86 gpt Ag (including 2.7 m @ 45.01 gpt Au, 106 gpt Ag); 39.9 m @ 1.28 gpt Au, 87 gpt Ag; 16.3 m @ 1.09 gpt Au, 28 gpt Ag; 18.2 m @ 1.72 gpt Au, 118 gpt Ag; 13.9 m @ 3.63 gpt Au, 144 gpt Ag. “The purpose of the program is to better define the very high-grade portions of the current deposit that may be amenable to bulk underground mining. The Company is carrying out a trade-off study to better define what portion of the deposit could be mined in a lower strip ratio pit and what portion would best be mined in more selective bulk underground mining”.
  • Oroco Resource Corp. released results from drilling at the South Zone of the Santo Tomás project in Sinaloa. Highlighted core length intervals estimated to be within 10% of true width comprise 221.7 m @ 0.023 gpt Au, 2 gpt Ag, 0.37% Cu; 145.0 m @ 0.008 gpt Au, 2 gpt Ag, 0.25% Cu; 89.0 m @ 0.011 gpt Au, 2 gpt Ag, 0.31% Cu (including 25.0 m @ 0.020 gpt Au, 4 gpt Ag, 0.74% Cu); 81.0 m @ 0.011 gpt Au, 1 gpt Ag, 0.20% Cu. “Historical drilling, surface geological mapping, and the Dias Geo 3D Induced Polarization survey have defined near-surface mineralization projected to 400 m below the surface along 2,000 m of strike length in the South Zone”.
  • Argonaut Gold Inc. updated its mineral resources to the end of 2022, including figures from its Mexican properties. The following table shows the resources on its Mexican properties, which at the end of 2022 comprised proven and probable reserves of 2.3 M Oz Au, 51.7 M Oz Ag, 86 K tonnes Cu, 5.6 M Oz Au, 94.9 Oz Ag, 187 K tonnes Cu in measures and indicated resources and 603 K Oz Au, 17.1 M Oz Ag, 5 K tonnes Cu in inferred resources.
  • Aura Minerals Inc. reported updated mineral reserves and resources for its operating mines, including from its Aranzazu mine in Zacatecas, to the end of 2022. Proven and probable mineral reserves stand at 9.6 M tonnes @ 0.81 gpt Au, 17.61 gpt Ag, 1.23% Cu, containing 249 K Oz Au, 5 M Oz Ag, 259 M Lb Cu. Measured and indicated resources comprise 15.1 M tonnes @ 0.97 gpt Au, 21.15 gpt Ag, 1.44% Cu, containing 471 K Oz Au, 10.4 M Oz Ag, 477.3 M Lb Cu. Inferred resources stood at 4.3 M tonnes @ 0.55 gpt Au, 16.37 gpt Ag, 1.04% Cu, containing 76 K Oz Au, 2.3 M Oz Ag, 99 M Lb Cu.

ON DEALS AND CORPORATE ISSUES             

  • Argonaut Gold Inc. announced the completion of the sale of the Ana Paula project in Guerrero to Heliostar Metals Ltd. The deal involved US$10 M in cash upon closing and US$20 M in deferred cash and share considerations. The project has 1 M Oz Au @ 2.36 gpt Au in proven and probable mineral reserves, is permitted for an open pit and potential for underground mining, with 142,000 m of drilling in 333 holes.
  • Sierra Madre Gold and Silver Ltd. announced the completion of the acquisition of the La Guitarra property in Estado de Mexico. Sierra Madre issued to First Majestic Silver Corp. 69 M shares for it to maintain a 19.9% interest on Sierra Madre, shares that are to be released by an escrow on four equal installments between September 2023 and March 2025. The company opened a brokered private placement on September 2022, intending to raise up to $10 M. The common shares are halted from trading, and are expected to resume trading following the closing of the common share offering.  

ON SOCIAL RESPONSIBILITY

  • Avino Silver & Gold Mines received for the first time in 2022 the ESR (Empresa socialmente responsible) award “granted by the Mexican Center for Philanthropy (El Centro Mexicano para la Filantropia or Cemefi, and the Alliance for Corporate Social Responsibility (Alianza por la Responsabilidad Social Empresarial or (AliaRSE))”.

On the image below: Porphyritic felsic dike on a project in the Sonoran Desert. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the Third Week of January, 2022

By Jorge Cirett

During the 3rd week of the year (January 17th to January 23rd, 2022), at least 34 press releases were announced by companies working in Mexico. To note, seven companies posted exploration advances on their properties, two announced listings on the OTCQB and OTCQX, nine presented quarterly and full year 2021 reports, five reported their 2022 production guidance, one filed the PEA on a tailings project, two filed technical reports on resource estimates and six posted on project development. ON MEXICO ISSUES, BNamericas listed eight properties to be commissioned in 2022-2023 for an investment of US$1.5 billion. ON EXPLORATION, in Sonora, Ranchero Gold released drill results from the Maíz Azul target on the Santa Daniela project; Tocvan Ventures announced trench results from Pilar; Prismo Metals mobilized a crew to explore El Pavito. In Durango, Silver Wolf presented results from surface sampling at Ana Maria. In Sinaloa, Vizsla Silver discovered a fat and juicy low angle vein in the Tajitos zone of its Panuco project. In Zacatecas, Galore resources received the drilling permit for Dos Santos.  In Estado de Mexico, Xali Gold started a drilling application for El Oro. ON MINING, Excellon Resources, Alamos Gold, Avino Silver, First Majestic Silver, Fortuna Silver, McEwen Mining, Capstone Mining, Great Panther, Pan American Silver and Gold Resource presented Q4 and full year 2021 production results. Alamos Gold, Endeavour Silver, Capstone Mining and Torex Gold announced 2022 production guidelines. Tarachi Gold filed the PEA on the Magistral tailings project.   ON FINANCING, Southern Empire and Silver Dollar announced their listings on the OTCQB and OTCQX venture markets respectively. ON RESOURCES AND DEVELOPMENT, GR Silver released drilling results from San Marcial in Sinaloa. Mithril Resources presented metallurgic, surface sampling and drilling results from Copalquin in Durango. Fabled Silver announced results from drilling at its Santa Maria property in Chihuahua. GoGold released results from drilling at El Favor at its Los Ricos North project in Jalisco. Golden Tag announced results from one long hole at San Diego, in Durango. Endeavour Silver filed resource estimates on its Guanaceví and Bolañitos properties in Durango and Jalisco respectively. GoGold Resources filed the resource estimate on Los Ricos North. Barksdale Resources announced assay results from drilling at its San Javier project in Sonora. ON DEALS AND CORPORATE ISSUES, no relevant news. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • Mining projects in development in Mexico for US$1.5 billion (US$1,500 million in Mexican notation). BNamericas listed the following projects: 1.-) Juanicipio in Zacatecas (US$440 M, Fresnillo-Mag Silver) with a six-month delay, is to produce 11.7 M Oz Ag, 43.5 K Oz Au per year. 2.-) Buenavista Zinc in Sonora (US$413 M, Southern Copper) is to start operation in 2023, to produce 100 K tonnes Zinc and 20 K tonnes Cu per year. 3.-) Los Filos expansion in Guerrero (US$213 M, Equinox Gold) is to increase production to 350-400 K Oz Au per year. 4.-) Pilares in Sonora (US$159 M, Southern Copper) is to augment production at La Caridad in 35 K tonnes per year. 5.-) Las Chispas in Sonora (US$138 M, SilverCrest Metals) is to produce 5.2 M Oz Ag, 56 K Oz Au per year. 6.-) La Yaqui Grande in Sonora (US$137 M, Alamos Gold) production is to report 123 K Oz Au per year. 7.-) Tahuehueto in Durango (US$32.2 M, Altaley Mining) aims to produce 16.1 K Oz Au per year, with Pb, Cu, Zn, Ag credits. 8.-) Santana in Sonora (US$7.55 M, Minera Alamos) plans to produce around 30 K Oz Au per year.

ON EXPLORATION

  • Ranchero Gold Corp. released drilling results from the Maíz Azul prospect within its 22,300 ha Santa Daniela project in Sonora. Highlighted core-length intervals on three holes comprise 31.50 m @ 4.0 gpt Au (including 12.00 m @ 9.93 gpt Au); 12.00 m @ 0.32 gpt Au; 3.40 m @ 0.27 gpt Au, 21.00 m @ 1.08 gpt Au (including 10.50 m @ 1.68 gpt Au); 1.75 m @ 0.15 gpt Au, 5.90 m @ 0.47 gpt Au, 5.95 m @ 0.28 gpt Au. “Results and analysis are pending for drill hole samples testing the La Cascada target as well as expanding known mineralization at La Colmena. The final holes of the 3000-meter drill program will focus on extending the La Colmena zone eastward …”.
  • Silver Wolf Exploration Ltd. presented assay results from 114 surface grab/chip samples on its 2,549 hectares Ana Maria property in Durango. Some of the highlighted grab sample results comprise 74 gpt Ag, 3.4% Pb; 120 gpt Ag, 11.6% Pb; 169 gpt Ag, 11.5% Pb; 150 gpt Ag, 6.0% Pb; 54 gpt Ag, 1.9% Pb, 12.3% Zn; 56 gpt Ag, 1.6% Pb, 21.3% Zn; 53 gpt Ag, 1.9% Pb, 7.8% Zn; 40 gpt Ag, 1.2% Pb, 16.6% Zn; 199 gpt Ag, 20.1% Pb, 1.7% Zn; 247 gpt Ag, 7.3% Pb; 339 gpt Ag, 10.0% Pb, 7.9% Zn; 319 gpt Ag, 8.3% Pb, 5.8% Zn. “In the southern claim, the extremely high-grade zinc and lead mineralization along with the high-grade silver values as well as the recently discovered historical workings indicate the potential for a carbonate replacement deposit”.
  • Tocvan Ventures Corp.  announced trench results from its Pilar project in Sonora. Four trenches were dug totaling 80 m in length, with highlighted results comprising 4.9 m @ 0.55 gpt Au, 11 gpt Ag in one trench; 19.5 m @ 0.61 gpt Au, 6 gpt Ag (including 2.7 m @ 3.01 gpt Au, 20 gpt Ag) in the second; 19.8 m @ 0.73 gpt Au, 8 gpt Ag (including 8.6 m @ 1.27 gpt Au, 12 gpt Ag) in the third; 7.0 m @ 0.54 gpt Au, 5 gpt Ag in the fourth trench. “Follow-up metallurgical studies will utilize the surface material extracted from the other three trenches”.
  • Galore Resources Inc. received acceptance of its drill permit applications for a 4,000 m diamond drill program at its Dos Santos property in Zacatecas. Crews have been mobilized to start the program that is to test El Alamo and San Jose prospects.
  • Prismo Metals Inc. mobilized a crew of geologists to the 5,289 ha El Pavito project in Sonora. “The Company has planned a four to five-month exploration program that will include comprehensive mapping and extensive sampling of the concession to define drill targets”. Two of the three known main targets in the district are within Prismo concessions, with potential for epithermal and orogenic shear-hosted gold mineralization.
  • Vizsla Silver Corp. announced the discovery of a new vein with high-grade results from drilling the Tajitos zone at its Panuco project in Sinaloa. The vein with a 35 degree dip returned highlighted true-width intervals of 83.10 m @ 0.78 gpt Au, 117 gpt Ag (including 10.46 m @ 4.06 gpt Au, 452 gpt Ag); 24.34 m @ 2.02 gpt Au, 230 gpt Ag (including 1.80 m @ 17.75 gpt Au, 1,523 gpt Ag); 81.91 m @ 1.00 gpt Au, 142 gpt Ag (including 2.31 m @ 18.04 gpt Au, 2,147 gpt Ag); 1.56 m @ 4.70 gpt Au, 599 gpt Ag; 3.81 m @ 0.59 gpt Au, 158 gpt Ag. “The Copala Vein marks the first discovery of this vein orientation and style made by Vizsla that has not been previously exploited by historical mining”.
  • Xali Gold Corp. started a drilling application process for the El Oro project in Estado de México. New drill targets have been delineated by 3D modelling looking for extensions of previous high-grade intercepts in previous drilling. “Some of the higher grades were found in several veins with overlying lower grade disseminated gold near the Mexico-Esperanza Mines border area of the San Rafael vein”.

ON MINING

  • Excellon Resources Inc. announced Q4 and annual 2021 production results from the Platosa mine in Durango. During the Q4 period 20,954  tonnes were mined, 21,309 tonnes milled grading 438 gpt Ag, 4.65% Pb, 5.50% Zn, recovering 90.5% Ag, 78.5% Pb, 83.7% Zn, to produce 271.5 K Oz Ag, 1.72 M Lb Pb, 2.17 M Lb Zn (492 K Oz AgEq). For the year, 85,530 tonnes were mined, 86,021 tonnes were milled @ 494 gpt Ag, 5.01% Pb, 6.03% Zn, recovering 89.5% Ag, 80.0% Pb, 79.0% Zn, to produce 1.22 M Oz Ag, 7.61 M Lb Pb, 9.01 M Lb Zn (2.06 M Oz AgEq).
  • Alamos Gold Inc. reported fourth quarter and full year 2021 production, including figures from its operations in Mexico. At Mulatos, in Sonora, 23,100 Oz Au were produced in Q4 to complete 121,300 Oz Au during the year. “Combined gold production from the Mulatos District (including La Yaqui Grande) is expected to be between 130,000 and 145,000 ounces in 2022”.
  • Avino Silver & Gold Mines Ltd. released its fourth quarter and full year 2021 results from the Avino mine in Durango. During the fourth quarter 103.5 K tonnes were processed @ 56 gpt Ag, 0.86 gpt Au, 0.55% Cu, recovering 89% Ag, 75% Au, 90% Cu, to produce 163.9 K Oz Ag, 2,158 Oz Au, 1.13 M Lb Cu (541.4 K Oz AgEq). For the full year 165.3 K tonnes were processed @ 53 gpt Ag, 0.84 gpt Au, 0.57% Cu, recovering 87% Ag, 75% Au, 88% Cu, to produce 245.4 K Oz Ag, 3,386 Oz Au, 1.87 M Lb Cu (842.4 K Oz AgEq).
  • First Majestic Silver Corp. presented its quarterly and full year 2021 production, including figures from its Mexican operations. For the quarter, at San Dimas in Durango 206.7 K tonnes were processed at a rate of 2,247 tonnes per day (tpd) and a grade of 347 gpt Ag, 3.71 gpt Au, recovering 94% Ag, 96% Au to produce 2.17 M Oz Ag, 23,795 Oz Au (4.01 M Oz AgEq);  at Santa Elena in Sonora, 224.5 K tonnes were processed at 2,440 tpd averaging 72 gpt Ag, 2.97 gpt Au, recovering 82% Ag, 92% Au, to produce 426.9 K Oz Ag, 19,810 Oz Au (1.95 M Oz AgEq); at La Encantada in Coahuila, 268.2 K tonnes were processed at 2,916 tpd averaging 117 gpt Ag, 0.02 gpt Au, recovering 75% Ag, 90% Au, to produce 757.6 K Oz Ag, 146 Oz Au. On the year, San Dimas produced 7.65 M Oz Ag, 81,237 Oz Au (13.52 M Oz AgEq); Santa Elena produced 1.95 M Oz Ag, 42,088 Oz Au (5.04 M Oz AgEq), La Encantada produced 3.24 M Oz Ag, 460 Oz Au (3.27 M Oz AgEq).
  • Fortuna Silver Mines Inc. reported production results for the fourth quarter and full year 2021, including figures from its operations in Mexico. At San Jose, in Oaxaca, 262.8 K tonnes were milled at a rate of 2,920 tpd, at a grade of 219 gpt Ag, 1.27 gpt Au, recovering 92.8% Ag, 92.2% Au, to produce 1.72 M Oz Ag, 9,929 Oz Au during the quarter, and processing 1.04 M tonnes at a 2964 tpd, averaging 209 gpt Ag, 1.29 gpt Au, with recoveries of 91.7% Ag, 91.3% Au, to produce 6.42 M Oz Ag, 39,406 Oz Au in the year. For 2022 Fortuna aims to produce 5.2-5.8 M Oz Ag, 32-36 K Oz Au at an AISC of $13.7-$16.1 per Oz AgEq. “The Brownfields exploration program budget for 2022 at the San Jose Mine is US$7.4 million, which includes 26,200 meters of diamond drilling …”.
  • McEwen Mining Inc. reported production for year 2021, including 540 AuEq Oz Au from residual leaching at El Gallo, in Sinaloa.
  • Endeavour Silver Corp. announced its consolidated production guidance for 2022. At Guanaceví in Durango guidance is a mining at a rate of 1,100 to 1,200 tpd to produce 3.8-4.2 M Oz Ag, 4.6-5.2 K Oz Au, whereas at Bolañitos the sought mining rate is 1,000-1,200 tpd to produce 0.4-0.6 M Oz Ag, 21-23 K Oz Au, for a consolidated production of 6.7-7-6 M Oz AgEq at cash cost $9.00-$10.00 and an AISC of $20.00-21.00 per Oz AgEq. Exploration drilling planned in 2022 at Guanceví, Bolañitos, Terronera, Parral and Pitarrilla amounts to 44,000 m with a budget of US$8.7 M.
  • Capstone Mining Corp. provided a corporate update and 2022 guidance, including figures from its Mexican operations. During 2021 the Cozamin mine in Zacatecas produced 24.5 K tonnes Cu, for 2022 the guidance is 23-26 K tonnes at a cash cost of $1.10-$1.25 Lb Cu. “Construction of the new paste backfill plant and dry stack tailings facility at Cozamin started in Q4 2021 and completion is expected at year-end 2022”. This facility will allow pumping half of the filtered tailings with cement to be used as backfill, and might permit the extraction of pillars from historic areas of the mine.
  • Tarachi Gold Corp. filed the preliminary economic assessment (PEA) for the Magistral tailings project in Durango.
  • Great Panther Mining Ltd. reported Q4 and full year 2021 production results, including figures from its Mexican operations. At Topia, in Durango, 14.6 K tonnes were processed @ 301 gpt Ag, 0.74 gpt Au, recovering 91% Ag, 63% Au to produce 128.6 K Oz Ag, 218 Oz Au, 235 tonnes Pb, 406 K tonnes Zn (2,494 Oz AuEq). At the Guanajuato Mine Complex  (GMC) in Guanajuato, 27.8 K tonnes were processed @ 127 gpt Ag, 1.70 gpt Au, recovering 87% Ag, 86% Au, to produce 98.4 K Oz Ag, 1,302 Oz Au (2,460 Oz AuEq). On the year Topia produced 716.5 K Oz Ag, 1,047 Oz Au, 1,385 tonnes Pb, 1,849 tonnes Zn (13,290 Oz AuEq) and the GMC 485.3 K Oz Ag, 6,659 Oz Au (12,369 Oz AuEq). The company is awaiting “ the permits from CONAGUA necessary to extend the tailings dam. Mining activity at the San Ignacio mine has also been suspended while Great Panther continues to proactively engage with CONAGUA in regards of the tailings dam permit and to explore other alternatives to maximize value from the GMC”.
  • Pan American Silver Corp. presented preliminary production results for Q4 and full year 2021, including figures from its Mexican operations. At La Colorada in Zacatecas 1.58 M Oz Ag, 800 Oz Au were produced in Q4, and 5.17 M Oz Ag, 2,700 Oz Au in the year. At Dolores in Chihuahua 507 K Oz Ag, 40,100 Oz Au were produced in Q4, and 2.24 M Oz Ag, 160,100 Oz Au in the year.
  • Torex Gold Resources Inc. provided 2022 operational guidance for its El Limon Guajes mine in Guerrero. Torex aims to produce $430-470 K Oz Au at total cash cost $695-$735 per Oz Au. The company is to invest $39 M min exploration at Media Luna, ELG Underground, near mine and regional and definition and grade control drilling.
  • Gold Resource Corp. presented Q4 and full year 2021 production results for its Don David project in Oaxaca. During the fourth quarter at the Arista mine 135.4 K tonnes were milled @ 1.93 gpt Au, 82 gpt Ag, 0.38% Cu, 2.2% Pb, 4.8% Zn, to produce 6,854 Oz Au, 330.9 K Oz Ag, 413 tonnes Cu, 2,345 tonnes Pb, 5,350 tonnes Zn. During the year 487 K tonnes were milled @ 2.01 gpt Au, 82 gpt Ag, 0.39% Cu, 1.93 % Pb, 4.36% Zn, to produce 26,438 Oz Au, 1.2 M Oz Ag, 1,506 tonnes Cu, 7,544 tonnes Pb, 17,329 tonnes Zn.  

ON FINANCING

  • Southern Empire Resources Corp. received approval from its shareholders to be listed on the OTCQB in the United States, and granted 900 K shares to directors, officers and consultants (Pedro, Durango).
  • Silver Dollar Resources Inc. reported its shares have qualified to be upgraded from the OTCQB Venture Market to the OTCQX Best Market (La Joya, Durango).

ON RESOURCES AND DEVELOPMENT

  • GR Silver Mining Ltd. released wide, high-grade results from diamond drilling at the San Marcial area of the Plomosas project in Sinaloa. The drilling focus was to test high-grade mineralization extensions along strike and down-dip from the current mineral resource. Highlighted true-width (TW) intercepts comprise 13.5 m @ 773 gpt Ag, 0.3% Pb, 0.4% Zn (including 4.1 m @ 1,792 gpt Ag, and 5.8 m @ 516 gpt Ag); 2.6 m @ 1 gpt Ag, 1.08 gpt Au; 24.5 m @ 97 gpt Ag, 0.2% Pb, 0.2% Zn (including 1.9 m @ 881 gpt Ag); 17.5 m @ 53 gpt Ag, 0.3% Pb, 0.5% Zn.
  • Mithril Resources Ltd. presented metallurgic, surface sampling and drilling results from its Copalquin project in Durango. Metallurgical test work for the El Refugio resource using flotation recovered 94% Au, 88% Ag. High-grade results from samples from workings at Las Brujas, El Peru and Dios Hijo returned up to 0.65 m @ 49.0 gpt Au, 665 gpt Ag; 1.0 m @ 7.93 gpt Au, 366 gpt Ag; 0.8 m @ 10.4 gpt Au, 422 gpt Ag. Highlighted core-length intervals comprise 6.00 m @ 0.84 gpt Au, 117 gpt Ag; 2.00 m @ 5.57 gpt Au, 162 gpt Ag at El Refugio, 4.55 m @ 8.29 gpt Au, 138 gpt Ag; 1.70 m @ 20.2 gpt Au, 298 gpt Ag at El Cometa, 2.0 m @ 1.02 gpt Au, 44 gpt Ag; 1.0 m @ 4.29 gpt Au, 17 gpt Ag; 1.0 m @ 4.47 gpt Au, 7 gpt Ag; 2.0 m @ 1.33 gpt Au, 60 gpt Ag; 1.0 m @ 1.18 gpt Au, 11 gpt Ag; 0.50 m  @ 6.50 gpt Au, 95 gpt Ag; 1.0 m @ 3.61 gpt Au, 22 gpt Ag on the eastern side of El Refugio.
  • Fabled Silver Gold Corp. announced results from surface diamond drilling of the upgraded 14,400 m program at its Santa Maria property in Chihuahua. Highlighted core-length intercepts comprise 0.90 m @ 90 gpt Ag, 0.16 gpt Au; 7.80 m @ 164 gpt Ag, 0.51 gpt Au, 0.1% Pb, 0.2% Zn (including 3.90 m @ 295 gpt Ag, 0.65 gpt Au, 0.1% Pb, 0.5% Zn).
  • GoGold Resources Inc. announced results for nine holes at El Favor East zone on its Los Ricos North project in Jalisco. Highlighted core-length intercepts comprise 54.0 m @ 0.15 gpt Au, 64 gpt Ag (including 5.3 m @ 0.44 gpt Au, 162 gpt Ag); 11.7 m @ 0.41 gpt Au, 129 gpt Ag; 25.5 m @ 0.07 gpt Au, 60 gpt Ag (including 2.0 m @ 0.24 gpt Au, 499 gpt Ag); 28.3 m @ 0.46 gpt Au, 154 gpt Ag (including 1.4 m @ 5.24 gpt Au, 1,310 gpt Ag); 3.3 m @ 0.70 gpt Au, 262 gpt Ag; 8.3 m @ 0.61 gpt Au, 201 gpt Ag; 10.6 m @ 0.95 gpt Au, 202 gpt Ag; 7.2 m @ 0.27 gpt Au, 61 gpt Ag; 52.0 m @ 0.18 gpt Au, 61 gpt Ag. To date approximately 800 m of El Favor East have been drilled, showing strong mineralization. The holes on this release were not included in the resource estimate released past December.
  • Golden Tag Resources Ltd. announced complete results for one drill hole at its San Diego project in Durango. Highlighted core-length intervals comprise 0.50 m @ 329 gpt Ag, 3.7% Pb, 2.7% Zn; 0.95 m @ 623 gpt Ag, 2.2% Pb, 2.5% Zn, 0.17% Cu in the Csplay zone, 0.56 m @ 1,460 gpt Ag, 12.5% Pb, 2.9% Zn, 0.27% Cu; 2.44 m @ 0.13 gpt Au, 104 gpt Ag, 0.7% Pb, 1.2% Zn in the Canta zone, 35.74 m @ 40 gpt Ag, 1.0% Pb, 1.0% Zn (including 7.78 m @ 86 gpt Ag, 2.4% Pb, 2.4% Zn); 322.90 m @ 0.03 gpt Au, 40 gpt Ag, 0.6% Pb, 0.7% Zn (including 27.70 m @ 72 gpt Ag, 1.5% Pb, 1.3% Zn, 0.1% Cu) and 91.60 m @ 60 gpt Ag, 0.7% Pb, 1.1% Zn, 0.13% Cu in the Fernandez zone. “The Fernandez Zone is steeply plunging cigar-shaped structure characterized by green and brown garnet exoskarn and red garnet endoskarn sulphide mineralization (pyrite-pyrrhotite-sphalerite-galena) contained within quartz-sulphide stockwork veins, breccias, and massive sulphide zones which are spatially associated with the contacts of diorite intrusive bodies”.
  • Endeavour Silver Corp. filed the technical reports on Guanaceví, in Durango, and Bolañitos, in Guanajuato. The reports cover the updated mineral resources on the properties, which add up to 312.9 K tonnes @ 49 gpt Ag, 2.53 gpt Au, containing 488.2 K Oz Ag, 25,500 Oz Au in mineral reserves, 468. 1 K tonnes @ 159 gpt Ag, 2.27 gpt Au, containing 2.4 M Oz Ag, 34,218 Oz Au in the measured and indicated category and  625.3 K tonnes @ 120 gpt Ag, 2.52 gpt Au, containing 2.41 M Oz Ag, 50,733 Oz Au in inferred resources at Bolañitos; and mineral reserves  of 1.09 M tonnes @ 343 gpt Ag, 0.93 gpt Au, containing 12 M Oz Ag, 32,527 Oz Au (32.53 M Oz AgEq) with measured, indicated and inferred resources of 1.53 M tonnes @ 440 gpt Ag, 1.03 gpt Au, containing 21.6 M Oz Ag, 50,349 Oz Au (25.64 M Oz AgEq) at Guanaceví.
  • GoGold Resources Inc. filed the technical report with the resource estimate for Los Ricos North in Jalisco. The resources comprises five deposits with indicated resources of 53.5 M Oz Ag, 186 K Oz Au in oxides and 49 M Oz Ag, 148 K Oz Au, 15 M Lb Cu, 90 M Lb Pb, 258 M Lb Zn in sulfides.
  • Barksdale Resources Corp. announced assay results from eight holes from its phase I drilling program at San Javier, in Sonora. Highlighted core-length intervals comprise 6 m @ 0.90% Cu; 18 m @ 0.38% Cu; 39 m @ 0.61% Cu, 27 m @ 0.26% Cu; 12 m @ 0.48% Cu, 33 m @ 0.28% Cu; 12 m @ 0.52% Cu; 27 m @ 0.33% Cu; 13,5 m @ 0.35% Cu; 47 m @ 0.75% Cu; 15 m @ 0.07% Cu, 0.73 gpt Au; 9 m @ 0.02% Cu, 0.41 gpt Au; 9 m @ 0.02% Cu, 0.84 gpt Au; 3 m @ 0.01% Cu, 0.58 gpt Au. “The final results from the drilling program, which are primarily step-out holes to the west and south, are expected to be released within the next few weeks, at which point we can complete our resource estimation for Cerro Verde”.

ON DEALS AND CORPORATE ISSUES

  • No Relevant News.

ON SOCIAL RESPONSIBILITY

  • No Relevant News.

On the image below: Coarsely banded multi-stage quartz-barite epithermal vein in the Sonoran desert. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the Fourth Week of August, 2019

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By Jorge Cirett

During the 34th week of the year (August 19th to August 25th, 2019), at least 23 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, the Charcas municipality in San Luis Potosi is awaiting for a favorable resolution by the Supreme Court on the use of the Mining Fund. ON EXPLORATION, in Baja California, One World Lithium plans a diamond drilling campaign at its Salar del Diablo project. In Sonora, Minaurum Gold released drilling results on its Alamos Silver project. In Durango, Canasil updated on exploration of its Salamandra, Nora, and Vizcaino projects. In Zacatecas, Canasil updated on exploration of La Esperanza. In Oaxaca, Megastar reported interesting surface sample results at its Yautepec project. ON MINING, Mexus Gold continues piling material on the heaps at its Santa Elena mine. Fortuna Silver reported an underground fatality at the San Jose mine in Oaxaca. ON FINANCING, Discovery Metals granted options to officers, directors, employees and consultants. SilverCrest Metals closed a private placement for C$4.56 M. Argonaut Gold entered into an agreement for gross proceeds of C$4 M. Avino Silver granted options and 1.73 M restricted share units to its directors, officers, employees and consultants. Millrock received an extension regarding the filing of documents in respect of a private placement. Kootenay Silver closed its non-brokered private placement financing for gross proceeds of $5 M. Tamino Minerals intends to raise capital. ON RESOURCES AND DEVELOPMENT, Aura Minerals reported that a geophysical survey indicates a mineralised body might open to depth at its Aranzazu mine, in Zacatecas. SilverCrest Metals received the explosives permit, acquired water rights and paid the remaining mining concessions at its Las Chispas project in Sonora. ON DEALS AND CORPORATE ISSUES, Magna Gold completed the acquisition of Las Marias and Las Cabanas groups of concessions in Sonora, adjacent to its flagship Mercedes project. GoGold renegotiated the acquisition agreement on Los Ricos property, Jalisco, to speed up the purchase and lower the amount of the full transaction by $5.4 M. Torex Gold hedged the production of 96 K Oz Au. Bacanora Lithium presented an update on the approval of Ganfeng Lithium investment on Bacanora by the Chinese authorities. ON SOCIAL RESPONSIBILITY. No relevant news.

ON MEXICO ISSUES

  • Mining municipalities in San Luis Potosi demand to receive the Mining Fund. The municipality of Charcas, in San Luis Potosi, presented a legal complaint to the Supreme Court to avoid the use of these funds (gathered by the payment on a royalty from mining proceeds) for programs unrelated to mining. The municipality president, Manuel López Lara, said these resources are needed to provide vital infrastructure to the community, and that they are awaiting a favorable resolution by the Supreme Court.

ON EXPLORATION

  • One World Lithium Inc. appointed Montgomery and Associates as operator for its upcoming drill programs on its Salar del Diablo lithium brine project in Baja California. Initially four diamond holes are to be drilled to 600 m depth to collect 20 groundwater samples at specified depths using a depth specific packer system.
  • Minaurum Gold Inc. released further drill results from its Alamos Silver project in Sonora. With the latest results Minaurum has now tested 14 of the 20 veins systems in the project. Highlighted recent results comprise 3.80 m @ 415 gpt Ag, 2.68 gpt Au, 1.37% Cu, 6.2% Pb, 9.2% Zn (including 0.95 m @ 1,566 gpt Ag, 6.72 gpt Au, 4.48% Cu, 9.3% Pb, 10.1% Zn); 0.95 m @ 425 gpt Ag, 0.32% Cu, 3.2% Pb, 1.3% Zn; 1.95 m @ 261 gpt Ag; 0.90 m @ 337 gpt Ag; 0.90 m @ 307 gpt Ag; 1.05 m @ 134 gpt Ag, 0.31% Cu, 1.2% Pb, 3.9% Zn. Minaurum reports high grade silver intercepts in 10 of the 14 veins drilled to date, and plans to drill six more vein systems before beginning follow-up drilling on veins that have the potential to host volumes of high-grade mineralization similar to that of the historic Quintera and Promontorio mines.
  • Canasil Resources Inc. presented a review of its main projects in central Mexico. At La Esperanza, in Zacatecas, there is a series of epithermal veins on a 15 km long corridor, with drilling at the La Esperanza vein returning up 11.23 m true width (TW) @ 219 gpt Ag, 0.74 gpt Au, 0.9% Zn, 0.4% Pb (including 1.11 m @ 2,281 gpt Ag, 6.39 gpt Au, 2.2% Zn, 1.2% Pb.  At Salamandra, in Durango, a rhyolite dome intruding sedimentary rocks has returned drill intercepts of up to 9.5 m @ 102 gpt Ag, 0.5% Zn; 10.0 m @ 71 gpt Ag, 3.5% Zn, 1.3% Pb; 7.89 m @ 166 gpt Ag, 1.2% Cu, 1.2% Zn, 0.6% Pb (including 2.30 m @ 393 gpt Ag, 3.6% Cu, 2.8% Zn, 0.4% Pb). At Nora, in Durango, samples on epithermal veins have returned up to 1.0 m @ 1.98 gpt Au, 514 gpt Ag, 1.03% Cu, 3.3% Zn, 4.4 % Pb. At Vizcaino, in Zacatecas, the gold-anomalous Pamplona vein is 1 to 12 m in width over 2 km of length, with chalcedonic quartz hosted in rhyolites.
  • Megastar Development Corp. reported assay results from surface sampling at its Yautepec property in Oaxaca. Results from a sinter zone and a bounding quartz vein of 162 samples returned up to 308 gpt Ag, 1.07 gpt Au, 99 ppm Cu, 464 ppm Pb, 548 ppm Zn, 102 ppm Mo, 92,600 ppm (9.26%) As, 307 ppm Sb. These high numbers are very encouraging on a high-level epithermal system like the one exposed at this project.

ON MINING

  • Mexus Gold US. has piled 4,000 tons @ 2.8 gpt Au on the heap for leaching at its Santa Elena mine in Sonora (not to mistake for First Majestic’s Santa Elena mine, also in Sonora).
  • Fortuna Silver Mines Inc. reports a fatal accident involving a contractor’s employee at its San Jose mine in Oaxaca. “The accident involved a scooptram operating underground, and the individual fatally injured was the driver”.

ON FINANCING

  • Discovery Metals Corp. granted 5.3 M options to certain officers, directors, employees and/or consultants (Puerto Rico, Coahuila).
  • SilverCrest Metals Inc. closed the private placement with SSR Mining Inc., pursuant to which SSR elected to exercise its equity participation right to maintain a 9.9% interest in SilverCrest by investing C$4.56 M. Upon closing of this transaction, SSR Mining holds 9,000,645 common shares of SilverCrest (Las Chispas, Sonora).
  • Argonaut Gold Inc. entered into an agreement with Cormark Securities Inc. to act as lead underwriter of a syndicate of underwriters that are to buy shares of the company for aggregate gross proceeds of C$4 M (La Colorada, Sonora).
  • Avino Silver & Gold Mines Ltd. granted 526 K incentive options and 1.73 M restricted share units to its directors, officers, employees and consultants (Avino, Durango).
  • Millrock Resources Inc. announced the TSX Venture Exchange granted Millrock an extension of the deadline to file materials in respect of the private placement financing previously announced (Batamote, Sonora).
  • Sable Resources Ltd. announced the completion of distribution of 29.9 M common shares of Talisker Resources Ltd. to shareholders of the company. “The distribution of the Talisker Shares was effected as a reduction in the stated capital of the common shares of the Company…. The Company previously received the Talisker Shares in consideration for the assignment of certain mineral resource properties located in the Province of British Columbia on April 18, 2019” (Margarita, Chihuahua).
  • Kootenay Silver Inc. closed its non-brokered private placement financing for gross proceeds of $5 M. Finder fees totaling $200 K were paid to Mackie Research Capital Corp. with 1.25 M common shares issued and 625 K warrants (La Cigarra, Chihuahua).
  • Tamino Minerals Inc. announced its intentions to raise capital. Currently Tamino has issued 370.6 M shares, of which 220.8 M are restricted and 149.8 M are deemed free trading (El Volcan, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Aura Minerals Inc. reported that a geophysical study at its Aranzazu mine in Zacatecas suggests the Glory Hole skarn may open down dip for a further 500 to 700 m from the current resource base, and also down plunge to southeast towards Cabrestante, which may represent potential for an increase of life of mine if confirmed by drilling.
  • SilverCrest Metals Inc. received approval from Secretaria de la Defensa Nacional (SEDENA) for the operational storage and use of explosives at its Las Chispas Project in Sonora. SilverCrest also acquired local water rights for Las Chispas and exercised its last outstanding option agreement to fully acquire the remaining four of the 28 concessions at Las Chispas, thereby obtaining 100% ownership in all Las Chispas mining concessions containing vein mineral resources.

ON DEALS AND CORPORATE ISSUES

  • Magna Gold Corp. completed the acquisition of the Las Marias property and las Cabanas mineral claims in Sonora“. Las Marias Property consists of 7 mining concessions covering 646 hectares adjacent to the Mercedes Property and Las Cabanas consists of 2 claims covering 248 hectares located approximately 10 km south-west of the Mercedes Property in Sonora, Mexico. The total purchase price for the new mineral concessions and other rights was $250,000 and the issuance of 1,000,000 common shares.”
  • GoGold Resources Inc. replaced the original option agreement for the Los Ricos property in Jalisco for a concession agreement. GoGold is now required to make a $500 K payment upon signing, $3.22 M to be paid on installments over 24 months, and 9.05 M shares of GoGold common shares to be delivered in equal numbers over 24 months. In addition, the company entered into an agreement to acquire the existing 2% NSR for $1 M in equal installments over 36 months and 4.87 M shares delivered in equal numbers over an 18 month period. This agreement is stated to save GoGold $5.4 M.
  • Torex Gold Resources Inc. entered into a series of no-cost collar hedges, with 96 K Oz Au hedged over the next 12 months. “The floor price of the monthly gold collars has been set at $1,400/oz with the ceiling price of the collars ranging from $1,666/oz in September 2019 to $1,768/oz in August 2020.”
  • Bacanora Lithium PLC. informed the agreements with Ganfeng Lithium Co. Ltd. have been submitted to the Chinese authorities for approval and completion. With the already received approvals by the PRC Ministry of Commerce and the National Development and Reform Commission, it is anticipated that the final approval from the State Administration of Foreign Exchange will be received following a Ganfeng board meeting to be held in the coming weeks (Sonora Lithium project, Sonora).

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

On the image below: Ricardo Ramonett collecting a stream sediment sample in Oaxaca. Picture by Jorge Cirett

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

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

By Jorge Cirett

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

ON MEXICO ISSUES

  • No Relevant News.

ON EXPLORATION

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

ON MINING

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

ON FINANCING

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

ON RESOURCES AND DEVELOPMENT

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

ON DEALS AND CORPORATE ISSUES

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

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

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

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Sonora Project Update

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Bacanora Lithium plc (AIM: BCN), the London listed lithium company, is pleased to provide an update on ativities at its flagship Sonora Lithium Project in Mexico (‘Sonora’ or ‘the Project’). This update is in line with the Company’s objective to commence the construction of a 35,000 tpa lithium carbonate operation at Sonora in H1 2018, targeting first production in Q1 2020. A recently completed Feasibility Study (‘FS’) demonstrated Sonora’s potential to become a leading supplier of high value lithium products to fast-growing industries, such as electric vehicles and energy storage. The FS demonstrated strong economics of US$1.25billion NPV; 26.1% IRR; and life of mine gross operating costs of US$3,910/t Li2CO3 , which are comparable to those of the low cost brine producers of South America.