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

IMG_0788 - copiaBy Jorge Cirett

During the 48th week of the year (November 25th to December 1st, 2019), at least 23 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, The Fourth Forum on Community Relations was held in Hermosillo. Steel production in Mexico decreased 3.6% during October, compared with October of last year; Steel production is 7.8% down for the first 10 months of 2019. The Sombrerete mine in Zacatecas might have to halt work, as a court provided a judicial restriction (“amparo”) under which the strike (commanded by Napoleon Gomez Urrutia) that paralyzed operations for more than ten years, is still valid. Mining and Metallurgical production in Mexico fell 4.2% in September. ON EXPLORATION, in Sonora, Silver Viper has commenced a 5,000 m drill program at its La Virginia project; Magna Gold provided an update on exploration at its Mercedes project near Yecora. In Coahuila, Discovery Metals released rock channel results from the Minerva, Monclova and Puerto Rico properties. In Zacatecas, Advance Gold has started drilling a large chargeability anomaly at its Tabaqueña property. ON MINING, Impact Silver and Discovery Metals released financial results for the third quarter 2019. ON FINANCING, Vangold Mining is to close the third tranche of financing for $707.5 K, while delisting from the TSX. San Marco completed a financing round for $448.6 K. McEwen Mining closed its offering for gross proceeds of US$50 M. VVC Exploration paid CA$200.9 K of debts with shares. Goldplay granted 1.37 M stock options to directors, officers and consultants. Vizsla Resources closed the first tranche of financing for gross proceeds of $3.6 M.  ON RESOURCES AND DEVELOPMENT, Candelaria Mining released results from 20 in-fill holes at Pinos, Zacatecas. Orla Mining expects to initiate open pit operations at Camino Rojo, in Zacatecas, in mid 2021. Peñoles is discussing possibilities to re-open the famous Naica mine, in Chihuahua. Peña Colorada commissioned a new, more sustainable, plant in Minatitlan, Colima. Discovery Metals began re-logging 132,000 m of historic drilling at Cordero, in Chihuahua, along with an airborne magnetic and electromagnetic survey, aiming to produce higher grade zones within the resource and new exploration targets outside it.  ON DEALS AND CORPORATE ISSUES, Azure Minerals overturned the cancellation of a key mineral concession on its gold-cobalt-copper skarn Sara Alicia project in Sonora. Tocvan Ventures agreed with Colibri Resource the acquisition of the Pilar project in Sonora. Tamino Minerals signed a LOI on the Ofelia project, in Sonora. Discovery Metals released results for the third quarter 2019, period during which the company acquired all shares from Levon, and thus the Cordero project in Chihuahua. ON SOCIAL RESPONSIBILITY. The Mining Baseball League was created, and the first game between the Nacozari and Caborca teams was held in Nacozari, Sonora. The fifth Caborca Health Fair sponsored by Penmont and the UNAM foundation was held in El Coyote Ejido, providing more than 3,600 specialized services. The Peña Colorada mine commissioned one km of cobble stone road to connect two communities in Jalisco. Orla Mining is working alongside three communities in Zacatecas, aiding in education related programs and water supply. Grupo Mexico has an exhibition at its Casa Grande in Nacozari. Ternium and the IMSS held a Health Fair in Colima. Peñoles had a Health Journey in Teleolapan, Guerrero. The spread of renewable energy production is changing the environmental impacts of mining project worldwide.

ON MEXICO ISSUES

  • The fourth Foro Minero de Relaciones Comunitarias (Community Relations Mining Forum) was held in Hermosillo on November 22, organized by the Sonora Mining Cluster, with the presence of the State governor, Claudia Pavlovich. Among the personalities present were Francisco Quiroga (Mining Subsecretary), Fernando Alanís (Camimex), Alberto Orozco and Gildardo Montenegro (Sonora Mining Cluster), Elia Tello (USA Consul), Manuel Barbera (from the Australian Embassy) and Alfonso Reyna (Construplan). The event had the presence of 360 attendees, almost twice the expected attendance.
  • On the Fourth “Foro Minero de Relaciones Comunitarias” (Community Relations Mining Forum), Fernando Alanís Ortega, Camimex President, elaborated on how the mining business model has evolved towards co-responsibility, and the advances the mining sector has provided for social development in Mexico. He spoke on behalf of Peñoles and the Camimenx, citing the numerous contributions by the company that generates 32,950 direct jobs and 34,598 indirect jobs, with $29,544 M pesos in salaries in 2018. Among the industry numbers presented are: Total investment on social development in 2018, $253.5 M pesos (US$13.2 M), 176 K beneficiaries, 55.5 K medical consults, $51,871.4 M pesos in salaries, over 500 alliances with ONG’s and governments, Environment investment of $803 M pesos, almost 580 K trees planted, 1,360 scholarships and 55 community centers in 40 localities.
  • Steel production in Mexico saw a decrement of 3.6% in October, accumulating a loss of 7.8% on production in the first 10 months of the year 2019. Worldwide, the reduction reached 2.8%, compared with the production of a year ago. In Mexico, the decrease has been due to poor numbers in construction and the automobile industry, as a result of the current economic stagnation.
  • An “amparo” or judicial restriction was granted to the Sindicatio Nacional de Trabajadores Mineros, Metalúrgicos, Siderúrgicos y similares de la República Mexicana, headed by the Morena senator Napleón Gómez Urrutia. Under the resolution Grupo México should respect the strike on the San Martín de Sombrerete mine in Zacatecas, which was declared in 2007 (Note by GPM.- The mine has been in operation by another union since August of 2018, and this ruling probably means all work is to be halted. Bad news for Sombrerete).
  • The mining and metallurgic production in Mexico fell by 4.2% in September. Among the losers, gold production decreased 22.3%, sulphur 13.2%, 12.7% fluorite, 12% lead, 11.2% gold, 2.2% silver and 1.2% copper. On the other hand, coal production increased by 7.2%, zinc by 2.0% and gypsum by 1.3%

ON EXPLORATION

  • Goldplay Exploration Ltd. Released results on its maiden drill program at the Nava target, within its San Marcial property in Sinaloa. Highlighted results from the first four drill holes comprise 1.00 m @ 354 gpt Ag (including 0.15 m @ 1,377 gpt Ag) in one hole; 0.45 m @ 0.21 gpt Au, 196 gpt Ag; 4.10 m @ 0.38 gpt Au; 0.95 m @ 2.35 gpt Au; 3.75 m @ 0.50 gpt Au; 2.30 m @ 0.42 gpt Au (including 0.10 m @ 8.94 gpt Au); 1.00 m @ 0.74 gpt Au, in other hole, and 0.95 m @ 1.22 gpt Au, 10 gpt Ag in another hole.
  • Silver Viper Minerals Corp. has commenced drilling at its La Virginia project in Sonora. The program envisages 5,000 m of drilling in approximately 20 holes, starting on El Rubi zone, where previous drilling intersected 13.30 m (6.0 m true width) @ 3.16 gpt Au, 228 gpt Ag. The last campaign encountered mineralization over 100 m of strike length, and phase II of drilling is designed to test for the extension on strike and at depth on 50 m sections. The program will continue to probe prospective targets.
  • Advance Gold Corp. has started drilling to test the chargeability anomaly identified on a recent 3D induced polarization survey on its Tabasqueña property in Zacatecas. The chargeability anomaly is 1,000 m long by 500 m in width, remaining open to the north, south and to depth.
  • Magna Gold Corp. provided an update of work on four areas of the Mercedes project in Sonora. Drilling at La Lamosa confirmed oxide mineralization and a follow-up program is being contemplated to test the southeast dip and the extent to the North. At Mina de Oro gold occurs in a silicified dacite intrusive rock on a 330 m by 150 m belt that is still open. Historic workings have returned samples of up to 1.2 m @ 63.2 gpt Au; 1.2 m @ 8.6 gpt Au; 0.3 m @ 11.1 gpt Au. A drill program is planned for 2020 on this target. At Salto Colorado a matrix supported breccia is 300 m long and 60 to 150 m in width, developed in intrusive rocks at the contact with a volcanic rock package. Eight samples in this target are over 1 gpt Au, peaking at 8.52 gpt Au, 460 gpt Ag, 4.0% Pb, 4.2% Cu in a sample from a small working. At La Cueva/Nochebuena a matrix supported breccia 120 m by 80 m has returned up to 0.76 gpt Au, 80 gpt Ag and >1% Cu. The La Cueva breccia is 300 m by 10 to 50 m in width with one sample of 13 above 1 gpt Au.
  • Discovery Metals Corp. released results from channel sampling at Minerva, in Coahuila, where 52 of 78 samples returned values >500 gpt AgEq, averaging 0.6 m @ 710 gpt Ag, 13.1% Zn, 8.8% Pb, 0.2% Cu. At Monclova, in Coahuila, a maiden drill program is being planned along 1.5 km of a contact zone between an intrusive and limestone. At Puerto Rico, in Coahuila, the company is having the land re-designated, and once the process is completed, will submit the drill permit application.

ON MINING

  • Impact Silver Corp. announced financial results for the third quarter 2019. Throughput at the mill in its Minas de Zacualpan unit was 34.95 K tonnes @ 165 gpt Ag to produce 179.5 K Oz Ag, with the greater share of production coming from the Guadalupe mine. EBITDA was $0.3 M and net loss for the quarter $0.2 M, with a cash position of $4.4 M by the end of the period (with a non-brokered private placement for aggregate gross proceeds of $4.95 M).

ON FINANCING

  • Vangold Mining Corp. informed the first tranche of its private placement was closed in March with gross proceeds of $335 K and a finder’s fee of $9.45 K. The second tranche was closed on May, for gross proceeds of $248 K, paying a finder’s fee of $14.25 K and 285 K warrants. Vangold expects to close the third and final tranche of the private placement, for gross proceeds of $707.5 K, with no finder’s fee payable. The company has also entered into debt settlements agreements with two creditors to settle $20.2 K, including $10 K in management fees with an executive officer. Vangold is also to apply for a listing on the Canadian Securities Exchange (CSE) and delist from the TSXV (Pinguico, Guanajuato).
  • San Marco Resources Inc. completed a financing round for gross proceeds of $448.6 K, paying a 6% finder’s fee in cash ($12.1 K) and 6% finder warrants (Chunibas, Sonora).
  • McEwen Mining Inc. closed its previously announced offering, for gross proceeds of US$50 M (El Gallo, Sinaloa).
  • Discovery Metals Corp. released financial and operating results for the third quarter 2019. During the period the company acquired all shares from Levon (Cordero, Chihuahua) and completed a non-brokered private placement for $9 M. On November 5, Discovery completed a non-brokered private placement for gross proceeds of $19 M. On November 18, the company commenced trading on the OTCQX Best Market in the US. By the end of the period the company had cash and cash equivalents of $9.97 M
  • VVC Exploration Corp. announced that an aggregate of CA$200.9 K of indebtedness was converted into shares and warrants, with two insiders of the company participating in the debt conversion. On October 25 the company closed a private placement for CA$2 M (US$1.5 M) for development of the Kaity property in Chihuahua.
  • Goldplay Exploration Ltd. has granted 1.37 M stock options to directors, officers and consultants of the company, for a term of five years (San Marcial, Sinaloa).
  • Vizsla Resources Corp. closed the first tranche of $3.6 M of the previously announced $4 M private placement. The balance of the offering is expected to closed by December 5, 2019. The company expects to close the previously announced $2 M non-brokered private placement on December 6, 2019. (Panuco-Copala, Sinaloa).

ON RESOURCES AND DEVELOPMENT

  • Candelaria Mining Corp. announced in-fill drill results from 20 holes on the Cinco Estrellas vein at the Pinos project in Zacatecas. Highlighted true width (tw) intervals comprise: 2.0 m @ 4.2 gpt Au, 92 gpt Ag; 1.0 m @ 2.1 gpt Au, 45 gpt Ag; 1.0 m @ 2.3 gpt Au, 6 gpt Ag; 2.5 m @ 3.7 gpt Au, 62 gpt Ag; 2.9 m @ 3.4 gpt Au, 29 gpt Ag; 1.0 m @ 6.0 gpt Au, 16 gpt Ag (including 0.4 m @ 12 gpt Au, 21 gpt Ag); 0.7 m @ 3.0 gpt Au, 25 gpt Ag; 1.0 m @ 3.3 gpt Au, 54 gpt Ag; 1.3 m @ 6.7 gpt Au, 51 gpt Ag (including 0.5 m @ 15.5 gpt Au, 110 gpt Ag); 0.9 m @ 3.1 gpt Au, 91 gpt Ag; 1.1 m @ 4.3 gpt Au, 15 gpt Ag. The weighted true width average is 1.5 m.
  • Orla Mining Ltd. is to initiate open pit operations in June of 2021 on its Camino Rojo property in Zacatecas, according from Camimex sources. The company has already started to work with three local communities inhabited by more than 1,200 persons.
  • Industrias Mineras Peñoles, along with communal farmers (Ejido), the Naica Community in Chihuahua, the municipality authorities and the Subsecretary of Mining are in talks for the reactivation of the Naica mine. Along the agreements is the investment of US$8 M on exploration, and the support of the Subsecretary of Mining for the authorization of the use of the mine waters for agricultural use, and the evaluation of subsidies for the conditioning of irrigation channels. The company offered to provide the equipment and its maintenance, with the ejido taking care of the electricity bills.
  • Peña Colorada commissioned the “Planta de Pastas” on the Centro Industrial Paticajo, in Minatitlan, Colima. The more than 850 M pesos investment (~US$45 M) plant is technologically innovative and conductive to sustainable production.
  • Discovery Metals Corp. begun re-logging of the geology of the 132,000 m of historic drill core at Cordero, Chihuahua, with an actual advance of 50% to date. In September a rig was mobilized, and second one early in November, completing 3,600 m in 11 holes, of the 30,000 to 35,000 m to be completed before the end of 2021. A 5,100 line—km airborne magnetic and electromagnetic survey began in early November, to cover the 35,000 ha property, to define new targets based on the signature of the current resource area.

ON DEALS AND CORPORATE ISSUES

  • Alio Gold Inc. informed a settlement agreement has been signed with Maverix Metals Inc. regarding disputed royalty payments at the company’s Florida Canyon mine (San Francisco, Sonora).
  • Azure Minerals Ltd. overturned an historical cancellation of the Sara Alicia II mining concession that adjoins its Sara Alicia property in Sonora, completing the acquisition of the property. This event increases the area held by the company in the area from 9 to 49 hectares. The acquisition was closed with the payment of $80 K to the owners of the concession. The mineralization previously intersected by Azure is related to strong magnetic high, same that continues for more than 300 m into the Sara Alicia II concession.
  • Tocvan Ventures Corp. signed the agreement to acquire the Pilar project in Sonora, from Colibri Resource Corp.. Tocvan has advanced the first year’s cash payment of $125 K and issued 2 M shares. Tocvan must complete a $2 M of exploration in the property over five years and pay Colibri $275 K over five years in installments of $50 K, $75 K, $75 K, and $75 K on the second, third, fourth and fifth anniversary of the signing, to obtain 51% of interest in the property. To acquire the remaining 49% interest, an additional payment of $2 M must be done to Colibri within 6 months of the fifth anniversary.
  • Tamino Minerals Inc. signed a letter of intention (LOI) on the potential acquisition of the Ofelia project in Sonora. The 19 hectares claim has rock chip samples returning over 1 Oz Au per ton.
  • Discovery Metals Corp. released financial and operating results for the third quarter 2019. During the period the company acquired all shares from Levon (Cordero, Chihuahua)

ON SOCIAL RESPONSIBILITY

  • The sub-secretary of Mining, Francisco Quiroga threw the first ball on the Mining Baseball League (recently created to strengthen ties in the mining industry) in the game between the Nacozari (Grupo Mexico) and Caborca (Fresnillo) teams. Grupo Mexico has 16 teams in nine States within the Mining League.
  • The 5th Caborca Health Fair, sponsored by Penmont and the UNAM Foundation, was held on the nearby El Coyote Ejido (community). More than 3,600 specialized services like medical treatments and revisions, with the majority having dental checks and 600 sight checks. The Universidad de Sonora realized 297 blood tests, the Instituto Mexicano del Seguro Social (IMSS) applied 500 influenza shots and the Secretaría de Salud provided more than five thousand services in 12 service modules, among which were general consultations, reproductive health, prostate, breast and cervical cancer detection.
  • The Peña Colorada mine delivered to the authorities in Cuautitlan de García Barragán in Jalisco, one kilometer of cobble stone road between the Ayotitlan and Las Marías communities, as well as a vehicle to the Municipality DIF (Integral Family Development System). The company is also to provide funds for the development of a water well to service the Cerro Prieto, La Astilla and Las Pesadas communities.
  • Orla Mining Ltd. is working with three communities in the state of Zacatecas, well ahead of its intended start of production on its Camino Rojo property. Among the social responsibility practices by the company is the construction of a building for children of pre-school age, support on water well equipment, and educative programs linked with the “Instituto Zacatecano de Educación para los Adultos” and Summer courses.
  • Casa Grande, in Nacozari, Sonora, is the venue for the “Minerals, the skin our Earth” exhibition sponsored by Grupo Mexico. The company has 16 “Casa Grande” community centers in 11 States, where workshops take place, along with artistic and cultural activities.
  • Ternium’s Health Fair was held in Colima, providing pediatric, geriatric and gynecology medical and optometry services to the population, in coordination with the Health Secretariat of Colima and the local Instituto Mexicano del Seguro Social (IMSS).
  • Industrias Mineras Peñoles. is conducting, in alliance with Fundación UNAM, a Health Journey (Jornada de Salud) in Teleolapan, at the Centro de Salud of Tehuixtla, in Guerrero, near its Capela project.
  • Renewable Energy has a positive influence in the Mining Sector. According to Fitch Solutions, mining companies are aware of the decrement of production costs in renewable energy. Some of the most common energy technologies applied by the sector include wind, solar, bio-diesel, geotermic, hydroelectricity and hydrogen. Currently, 1 GW of renewable energy is generated at mine sites worldwide, and another 1 GW is under construction.

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: K-Feldspar alteration in metamorphic rocks, from a project in Oaxaca. Picture by Jorge Cirett.

IMG_0788 - copia

The Mining and Exploration News in Mexico: Highlights on the Third Week of November, 2019.

Quartz blade texture in an epithermal vein

By Miguel A Heredia

During the forty-seven week of the year (November 18th to November 24th, 2019), at least 28 press releases were announced by companies working in Mexico, with seven commenting on Mexican issues, five announcing financial rounds, five discussing issues on social responsibility, four reporting on resources and development of their projects, three communicating production and financial results, three informing on exploration results, and one disclosing deals and corporate issues.  ON MEXICO ISSUES, The president of México, Andrés Manuel López Obrador, hinted restructuring mining regulations.  The director of the Mining Fund of the Secretariat of Economy approved MXP $103.6M to be distributed in seven states. The Under Secretariat of Mining, Francisco Quiroga announced that the Mining Fund will continue being delivered to the Municipalities where it is generated, as it was established in the Official Gazette of the Federation (DOF). Newmont Goldcorp and Ejidatarios signed an agreement to solve conflict in Peñasquito.  The director of The National Institute of Anthropology and History (INAH) in Morelos spoke in favor of the construction of a social and cultural development without demerit of mining operations at the Esperanza deposit (Cerro Jumil). The Mexican Government begun the rescue of 63 miners who were trapped in the explosion of the Pasta de Conchos coal mine in February 2006.The plurinominal Senator Napoleón Gómez Urrutia again appeared in the spotlight: various voices asked for his lawlessness to appear before the courts for his responsibility in the Pasta de Conchos tragedy. It also faces great opposition for its initiatives regarding outsourcing. ON EXPLORATION, In Sonora, Colibri received geological mapping study results from its Evelyn project. In Chihuahua, Kootenay reported drill results from the last ten holes drilled at its Columba project. In Jalisco, GoGold released drill results from 10 holes collared at its Los Ricos project. ON MINING, Mexus Gold announced that Au recovery continues at its Santa Elena mine in Sonora. Endeavour announced that mining operations on its El Cubo mine in Guanajuato will cease on November 30, 2019. Consolidated Zinc reported October 2019 production results from its Plomosas mine in Chihuahua.  ON FINANCING, Galore closed its second and final tranche of a non-brokered private placement for gross proceeds of CAD $92,634, for a total financing of CAD $279,816 (Dos Santos project, Zacatecas). Orex closed a non-brokered private placement for gross proceeds of CAD $800K (Sandra-Escobar project, Durango). San Marco closed a non-brokered private placement to raise gross proceeds of $448,600 (Chunibas project, Sonora). Vangold provided an update on its private placement and anticipated the closing of a third and final tranche this month for gross proceeds of $707,500 (El Pinguico project, Guanajuato). McEwen announced pricing of USD $50M public offering (El Gallo, Sinaloa). ON RESOURCES AND DEVELOPMENT, Premier Gold reported drilling results and announced that it has extended high grade mineralization at its Mercedes mine in Sonora. SilverCrest announced its best drill hole to date at its Las Chispas project in Sonora. Torex Gold extended mineralization down-dip at the Sub-Sill deposit at its Limon-Guajes mine complex in Guerrero. Impact Silver provided and update on its operations at its Zacualpan Mining District, in the State of Mexico, and reported the presence of native Ag at its Guadalupe mine. ON DEALS AND CORPORATE ISSUES, Discovery Metals announced that is already trading on the OTXQX Best Market in the USA (Cordero project, Chihuahua).  ON SOCIAL RESPONSIBILITY, IMMSA donated 60K plants, (40K forest trees and 20K ornamental plants) to the municipal government of San Luis Potosi. Compañía Minera Cuzcatlán (Fortuna Silver) boosted “Access to Education” through a scholarship program. The Red Cross delegation of Torreón, Coahuila recognized Peñoles as a socially responsible company for donations and all the support received every year. Peñasquito launched the program “Together We Leave Legacy”. Ternium allocated USD $60M to sustainable plan in Monterrey.

ON MEXICO ISSUES

  • Andrés Manuel López Obrador, President of México, hinted a possible modification to the mining regulations, deepening the uncertainty that weighs on Mexico´s mining sector. The Camimex (mining industry chamber) has repeatedly expressed concern about possible changes in policies that aim to reduce spending. While mining investment is forecast to USD $5.3B this year, this 7% increase is the smallest since 2016. “It requires a public policy that builds trust among investors,” the chamber said recently.
  • The Secretariat of Economy, through the Director of the Mining Fund approved MXP $103.6M to several states. The mining fund designated MXP $43.2 for Durango, MXP $26.5M for Sonora, MXP $14.9M for Zacatecas, MXP $10.4M for Chihuahua, MXP $5M for Aguascalientes, MXP $2.8M for San Luis Potosi, and MXP $751K for Hidalgo. In addition, informed that approved MXP $10.4M for paving projects, public lighting and a sports field in the Municipalities of Santa Bárbara, Ascensión and San Francisco del Oro, Chihuahua. The director Gómez Leyja listed the different support for responsible mining for the “progress and well-being of the benefited municipalities”. Municipalities and the State of Chihuahua began this year constitutional controversy against the Government of Mexico over the cancellation of the Mining Fund. The federal government has gradually released amounts, although in 2018 there were 300 million pesos distributed among 23 municipalities of Chihuahua
  • The Under Secretariat of Mining, Francisco Quiroga, announced that Mining Fund will continue being delivered to the municipalities where it is generated, as it was established in the Official Gazette of the Federation (DOF). “The Federative Entities, Municipalities and Demarcations, will be the executing agencies of the federal public resources transferred to them, once the proposed physical investment projects have been approved by the Regional Committee,” dictates article twenty-seventh of the new agreement. This news is a relief for the sector, since a redistribution of the resources of the Fund that sought to allocate capital to educational infrastructure in the country had been approved, depriving communities of the full range of direct benefits that the presence of a mining operation Given this initiative, various voices in the sector asked the President of Mexico not to leave the mining municipalities out, and the Governors of Sonora, Durango, Chihuahua, Zacatecas and Guerrero also joined the lobby. Until 2018, a collection of MXP $ 18,000 M is calculated to integrate the Mining Fund, and this year an estimated amount of MXP $ 3,200M is estimated. One of the premises of the new guidelines of the Mining Fund is that it operates with greater transparency and efficiency. Until 2018, the Fund was operated by the Ministry of Tourism and Urban Development, now the application and administration is in the hands of the Ministry of Economy.
  • Newmont Goldcorp Corporation, signed an agreement with the Mazapil Ejidatarios to solve conflict in Peñasquito. The six agreements conceived in the Ministry of the Interior at the Federal level detail that the Ejidatarios of Cedros and transport contractors agree not to block the mine operation and Newmont Goldcorp commits not to suspend operations and avoid affecting 60K people who depend on mine operation. It also was agreed to install a mechanism for the analysis, discussion and taking of agreements regarding pending issues, such as the shortage of water in the Cedros aquifer, as well as the compensation of the damages of a possible environmental affectation. Other points to consider are the review of the possibility of incorporating a new transport contract under the modality of “individual contracts” for the communities of Mazapil, Cedros, Verjel, and Cerro Gordo, and finally look for the possibility of incorporating more personnel transport routes in local communities.
  • The Director of The National Institute of Anthropology and History (INAH) in Morelos, spoke in favor of the construction of a social and cultural development without demerit of mining operations at the Esperanza deposit (Cerro Jumil), as long as it is assured by the mining company (Alamos Gold) that there would be no affectations to the historical heritage of that place and having as its center of importance the archaeological zone of Xochicalco. The polygon protection of Xochicalco is clear and defined. However, the Director of INAH acknowledged that the subject is waiting for answers. INAH does not authorize mining projects. INAH is not responsible for reviewing and approving mining projects, which is another area of competence.
  • The Mexican Government, begun the rescue of 63 miners who were trapped in the explosion of the Pasta de Conchos coal mine in Coahuila on February 2006. The Mexican Geological Service, along with a group of experts from Germany, China, USA and Australia, initiated the rescue and the first steps corresponded to “studies of gas, water, soil mechanics that will allow to know well the underground conditions” in the Pasta de Conchos mine.
  • The plurinominal Senator Napoleón Gómez Urrutia again appeared in the spotlight: various voices asked for his lawlessness to appear before the courts for his responsibility in the Pasta de Conchos tragedy. It also faces great opposition for its initiatives regarding outsourcing. The National Democratic Union of Mining, Metallurgical, Steel and Related Workers asked in a statement to reopen the file of Pasta de Conchos to endorse Gómez Urrutia responsibilities, as it is stated, the senator endorsed the conditions of the mine days before the tragedy, so it must be judged for negligence. On the other hand, the TUCONAP, an acronym for “Todos Unidos against Napoleón Gómez Urrutia”, a group that seeks to annul the Senator’s plans to criminalize the labor figure of outsourcing, has emerged. Various labor experts consider that “regularizing” outsourcing (as Urrutia calls it, which in turn coordinates the Senate Labor Commission) would seriously affect investment and jobs in Mexico, in addition to causing severe damage to the country’s economy.

ON EXPLORATION

  • Colibri Resource Corporation, received structural mapping results of a study carried out on its Evelyn project in Sonora. This study was conducted on two main areas named Cerro Rojo and the El Sahuaro, and both display similarities to the structure, mineralization characteristics, and presence of certain indicator minerals found at La Herradura Mine operated by Fresnillo plc, and located about 25km from the Evelyn project. The study identified seven exploration targets for follow-up within these two main areas of Cerro Colorado and El Sahuaro. A total of 93 chips, channel and selective samples were collected and will be reported upon their receipt.
  • Kootenay Silver Inc., reported drill results from the last ten holes drilled at its Columba project in Chihuahua on five different veins. Significant drill intersections were encountered in hole CDH-19-022 with 244 g/t Ag over 6.25m, including 373 g/t Ag over 1.5m on D Vein; hole CDH-19-21 with 187 g/t Ag over 1.2m in D Vein and 51 g/t Ag over 23.8m, including 191 g/t Ag over 2m in the footwall  of the D Vein; hole CDH-19-025 with 105 g/t Ag over 7.6m, including 32 g/t Ag over 98.1m in stockworks and breccias of the J Vein; hole CDH-19-27 with 115 g/t Ag over 6.56m in J Vein; and hole CDH-19-28 with 72 g/t Ag over 14m, including 95 g/t Ag over 10m in stockwork of the J Vein. “Drilling not only confirmed intercepts of high-grade Ag, but also potential bulk-minable Ag mineralization with significant exploration potential remaining along strike and depth on several veins”.
  • GoGold Resources Inc., released drill results from 10 holes collared at its Los Ricos project in Jalisco, being 4 holes in the Main Zone, 4 holes in San Juan area, and 2 holes in the southern area of the property. Highlights of the holes collared in the Main Zone include hole LRGG-19-056 with 05 g/t Au and 186 g/t Ag (2.97 g/t AuEq or 223 g/t AgEq) over 26m, and hole LRGG-19-063 with 0.53 g/t Au and 85 g/t Ag (1.67 g/t AuEq or 125 g/t AgEq) over 24.5m. In San Juan area, highlights include  hole LRGG-10-069 with 1.11 g/t Au and 103 g/t Ag (2.48 g/t AuEq or 146 g/t AgEq) over 16.3m. In the southern area of the property, hole LRGG-19-068 encountered 0.92g/t Au and 161 g/t Ag (3.07 g/t AuEq or 230 g/t AgEq) over 7.8m.  “The core drilling campaign is focused on defining the mineralized halo around the historical high grade ore shoots as defined by the underground workings and the 65 historical RC drill holes on the property. The program has now been expanded for additional testing along 3.2 km of the Los Ricos mineralized zone”.

ON MINING

  • Mexus Gold US, reported that Au recovery continues at its Santa Elena mine in Sonora. Initial leaching results showed 0.48 g/t Au but slowed due to improper pH control. To solve this issue, Mexus installed an automatic pH/cyanide aeration control pumping system, and now is working properly. This recent correction will allow for a substantial increase in Au recovery from the 1.8 g/t Au head ore.
  • Endeavour Silver Corp., announced the cessation of mining operations on its El Cubo mine, Guanajuato on November 30, 2019 due to exhaustion of reserves. The company reported that milling operation will continue for a week until the ore stock has been processed and the mill cleaned for concentrates. All employees will be laid off and the mine will be placed on short term care and maintenance. Suspension costs were estimated in $3.5M-4.0M, including final severance payments for all employees.
  • Consolidated Zinc Limited, reported October 2019 production results from its Plomosas mine in Chihuahua. The company increased its ore mining production to 4,827 tonnes with grades of 16.5% Zn, 8.4% Pb, and 45 g/t Ag to produce 1.78M Lb Zn, 907.2K Lb Pb and approximately 4.7K Oz Ag. It reported that Zn and Pb recoveries during October 2019 were 62.3% Zn to Zn concentrate, and 21.2% Pb to Pb concentrate. Consolidated Zinc produced 430 tonnes of Zn metal in concentrate at 55% Zn concentrate grade, and 104 tonnes of Pb metal concentrate, including 4,769 Oz Ag at a 52% Pb concentrate grade.

ON FINANCING

  • Galore Resources Inc., closed its second and final tranche of a non-brokered private placement for gross proceeds of CAD $92, 634 for a total financing of CAD $279,816 (Dos Santos project, Zacatecas). The company also announced the TSX acceptance to a shares for services arrangement with COMEFIN S de RL de CV, who conducted a core drilling program at its Alamo project. The agreed service payment is a combination of shares and cash.
  • Orex Minerals Inc., closed a non-brokered private placement for gross proceeds of CAD $800K. Gross proceeds will be used to maintain its 40% share of the Sandra-Escobar project in good standing, funds its 40%share of the upcoming work program, and to make the necessary payments under its existing option to acquire 100% interest in the Cordero project, Durango.
  • San Marco Resources Inc., closed a non-brokered private placement to raise gross proceeds of $448,600 (Chunibas project, Sonora).
  • Vangold Mining Corp., provided an update of its private placements and anticipated the closing of a third and final tranche this month for gross proceeds of $707,500 subject to acceptance of the TSX Venture Exchange. Upon final closing of the private placement, Vangold will have issued an aggregate of 25,809,500 units for aggregate gross proceeds of $1,290,475 (El Pinguico project, Guanajuato).
  • McEwen Mining Inc., announced that it has priced an underwritten public offering for aggregate gross proceeds of $50M (El Gallo mine, Sinaloa).

ON RESOURCES AND DEVELOPMENT

  • Premier Gold Mines Limited, released drilling results from its Lupita Area and announced the extension of high-grade mineralization at its Mercedes mine in Sonora. Highlights from October drilling include hole L19-457D with 15.8 g/t Au and 69 g/t Ag over a true width of 1.4m and hole L19-496D with 10.03 g/t Au and 58 g/t Ag over a true width of 4.6m at San Martin area ; and hole L19-488D with 9.41 g/t Au and 34 g/t Ag over a true width of 8.9m and hole L19-480D with 7.96 g/t Au and 32 g/t Ag over a true width of 3.6m at Lupita Extension area. More drilling delineation is planned in 2020 to upgrade mineralization to an indicated mineral resource. “Given a spacing of less than 60 m of drilling at San Martin during 2019, a portion of the mineralization will warrant inclusion into mineral resources at year end”.
  • SilverCrest Metals Inc., announced its Best drill hole to date at its Las Chispas project in Sonora, at a newly defined zone named 118 Zone. Hole LC-19-118 intersected 44.3 g/t Au and 4,551 g/t Ag (7,873 g/t AgEq) over a true width of 8.6m, including 213.66 g/t Au and 21,671 g/t Ag (37,695 g/t AgEq) over a true width of 1.7m. Also, hole LC19-123 intersected 2.63 g/t Au and 452 g/t Ag (649 g/t AgEq) over a true width of 0.5m, and 3.54 g/t Au and 616 g/t Ag (881 g/t AgEq) over a true width of 5.5m, including 12.69 g/t Au and 2,255 g/t Ag (3,207 g/t AgEq) over a true width of 0.9m.
  • Torex Gold Resources Inc., reported drill results of the last round and extended mineralization 300m down-dip of the existing reserves at the Sub-Sill deposit at its Limon-Guajes mine complex in Guerrero. Highlights include hole SST-156 with 35.17 g/t Au and 49 g/t Ag over 6.1m and 12.56 g/t Au and 29 g/t Ag over 4.93; hole SST-135 with 21.64 g/t Au and 15 g/t Ag over 3.5m; hole SST-139 with 19.54 g/t Au and 3 g/t Ag over 5.9m; hole SST-132 with 13.94 g/t Au and 5 g/t Ag over 8.9m and 15.78 g/t Au and 8 g/t Ag over 5.2m; and hole LDGU-047 with 13.89 g/t Au and 15 g/t Ag over 12.8m.
  • Impact Silver Corp, provided and update on its operations at its Zacualpan Mining District, in the State of Mexico, and reported the presence of native Ag at its Guadalupe mine, on the main Lipton Vein named the Jewelry Shop. Impact is expanding production in its Guadalupe mine, adjacent to the Guadalupe plant, and has upgraded the shaft and infrastructure to access additional veins for mining. At La Negra mine, the company recently started an initial production from the open pit to feed the plant with ore grading 200 g/t Ag. Work is in progress to determine the full upside potential of this zone. At San Ramon Deeps mine, the drilling program below current mining levels intersected new high grade mineralization which may allow renewed expansion of production. A new underground drill station is being excavated to drill the depth extensions of this new mineralization.

 ON DEALS AND CORPORATE ISSUES

  • Discovery Metals Corp., announced that is already trading on the OTCQX Best Market in the USA under the symbol DSVMF (Cordero project, Chihuahua).

ON SOCIAL RESPONSIBILITY

  • IMMSA, donated 60K plants to the municipal government of San Luis Potosi to reforest the city. The Director of Municipal Services, Gonzalo Benavente González, explained that a total of 40 thousand forest trees such as pine trees, ash trees, jacaranda trees, white cedars were received, in addition to 20 thousand ornamental plants such as daisies, carnations, lavenders, rue, mint, peppermint, among other aromatic species. Finally, he said that the plants will be used to continue reforesting the various areas of the city that lack green areas, likewise donated to citizens and delivered to educational events to continue promoting the sustainable development of the capital.
  • Compañía Minera Cuzcatlán (Fortuna Silver), boosted “Access to Education” through a scholarship program. Since its creation in 2009, the Cuzcatlán scholarship program is aimed at primary, secondary, middle-upper and higher students of the municipality of San José del Progreso and agencies, where Compañía Minera Cuzcatlán operates the San José mine. The objective is to support students to continue their studies and prevent school dropout. For the 2018-2019 period, the educational project promoted by the company and the Municipal Education Region benefits 773 families that receive direct economic and in-kind support for their children through a total investment of MXP $1.99M.In addition to the Scholarship program, Compañía Minera Cuzcatlán contributes with resources for internet service, teaching materials and septic tank cleaning of all San José del Progreso schools and agencies. Year after year, Compañía Minera Cuzcatlán works to create shared development with the communities in which it operates and this program is an example of sustainable mining in Oaxaca.
  • The Red Cross delegation of Torreon, Coahuila, recognized Peñoles as a socially responsible company for donations and all the support received to join the collection that the Red Cross makes every year to obtain resources and continue improving. “Last year Peñoles donated a new and equipped ambulance with everything and two other semi-new ones. In addition, about MXP $4M were invested in an operating room, emergency rooms, and floors. We did four more doctor´s offices, we now have specialists and we have been adding doctors”, said the president of the board, Juan Raymundo Jaime Ramírez.
  • Peñasquito, launched the program “Together We Leave Legacy”. Twenty seven communities in the region where Minera Peñasquito operates will benefit from the program “Together We Leave Legacy”, a project that aims to improve the conditions of educational infrastructure and boost sports in this region of the Zacatecan semi-desert.
  • Ternium S.A., allocated USD $60M to sustainable plan in Monterrey, so that all the handling of the product it generates has the guarantee that it will not cause emissions to the atmosphere, said César Jiménez, General Director of the steel company. “We have just opened a smoke collection system three months ago at the Puebla plant to minimize emissions to the atmosphere, we had already installed the same system as our Guerrero plant in Monterrey a few years ago and now we are in the next stage”. The director stressed that the most important issues within Ternium’s agenda are sustainability, safety and environmental care, where relevant investments have been made in all its plants, which total around 200 million dollars in recent years.

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, quartz blade texture in a low sulphidation epithermal chalcedonic quartz vein system from a prospect in Durango, Mexico. Photo by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the Second Week of November, 2019

IMG_0870 - copia

By Jorge Cirett

During the 46th week of the year (November 11th to November 17th, 2019), at least 23 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, mining investments in Mexico decreased from 8 billion dollars in 2018 to 5 billion dollars in 2019. Camimex held a fiscal seminar in Queretaro. Almaden Minerals published a letter on indigenous population around the Ixtaca project in Puebla. Promperú organized in Hermosillo, Sonora, a Commercial Mission of suppliers to mining in Peru. The top ten silver miners in Mexico produced 39.8 M Oz in the third quarter 2019. The mining industry in Mexico has been subject in the past few years of regulatory hurdles that are having a negative effect in investment in the sector, the last one being the decision by SEMARNAT not to authorize the MIA on the Ixtaca project in Puebla until there is a resolution on a legal suit on a piece of land no longer held by the company running the project.  ON EXPLORATION, in Sonora, Evrim updated on exploration of the El Llanito del Nogal property; Magna Gold reported assay results from four more holes at Mercedes. In Sinaloa, Vizsla Resources released high-grade results from rock channel sampling at Panuco.  ON MINING, Premier Gold, Golden Minerals, Starcore International, Americas Gold and Silver, Sierra Metals, Odyssey Marine Exploration and Fortuna Silver presented third quarter 2019 results. Consolidated Zinc and Industrias Peñoles signed an offtake agreement on zinc concentrate. ON FINANCING, Tamino Minerals informed on trading volumes. Mexican Gold received TSX approval for the listing of 50 M warrants from a previous financing. Colibri Resources entered into a loan agreement with Agnico Eagle for $300 K.  ON RESOURCES AND DEVELOPMENT, Defiance Silver is to start a two-phase technical program at San Acacio, Zacatecas. Endeavour Silver reported positive drill results on recently acquired El Curso concession within its Guanaceví property. Peñoles is to invest $70 M at its processing facilities in Torreon. SilverCrest released high-grade results from drilling at the Babi Vista vein at Las Chispas, in Sonora. Bacanora Lithium updated on project development on its Sonora project. ON DEALS AND CORPORATE ISSUES, Evrim signed an agreement with San Marco Resources to acquire the Suanse property in Sonora. Colibri Resources extended an agreement with Agnico Eagle on the disposal of Colibri’s share on the Pitaya project in Sonora.  ON SOCIAL RESPONSIBILITY. Peñoles is conducting courses for children and adults at its Torreon community center. Ternium is organizing health festivals in Nuevo Leon, Coahuila, Jalisco, Michoacan, Puebla and San Luis Potosi. Argonaut sponsored the third edition of the La Colorada race, within the pit benches at the mine in Sonora. The “Doctor Vagón”  itinerant health clinic sponsored by Grupo Mexico provided service to 550 persons in Gomez Palacio, Durango. La Brisa mining company provided cleaning equipment to the Topia community in Durango. Peñoles mining units source 35% of its energy requirements by removable sources, and expects to reach 100% by 2028.

ON MEXICO ISSUES

  • During 2019 investments in the mining sector are to reach five billion (5 mil millones) dollars, according to Francisco Quiroga, Subsecretary of Mining. That’s a decrease from the eight billion (8 mil millones) invested in 2018.
  • Camimex organized the Seminario Fiscal de la Industria Minera in Queretaro. Camimex compromise is complete on its involvement on the “mesa de diálogo” (dialogue meetings) with the federal government, where proposals to incentivize investment are to be exposed, checking on subjects like the fiscal situation, regulatory environment and security. The head of Camimex, Karen Flores, explained that on the Fraser Institute study Mexico is number 71 of 83 jurisdictions on the fiscal regime. Camimex is for the 100 percent deduction of exploration expenses, and the establishment of pacts of fiscal stability on a 15 to 20 year time frame, as is Peru, Chile and Argentina. In a comparative study, Mexico has the heaviest fiscal load among peers like the US (Arizona), Canada (Ontario), Peru and Chile.
  • Minera Gorrión (Almaden) published a letter on indigenous population around the Ixtaca project in Puebla. Although indigenous persons inhabit the area, there is not such an indigenous community within the area of influence of the project. The company stresses the misinformation produced by some activists groups with total impunity, and reaffirms its confidence on institutions and the rule of law.
  • Promperú organized in Hermosillo, Sonora, its II Commercial Mission of Suppliers to Mining in Peru. Several conferences were presented by members of the mining communities and governments of both countries.
  • The top 10 silver mining companies in Mexico had a solid third quarter. During the period these companies produced 39.8 M Oz, compared with 39.0 M Oz produced on the same quarter a year ago. The top producer is Industrias Peñoles, with 15.3 M Oz almost 40% of that amount and 2.2 M Oz less than the same quarter 2018 (Fresnillo, Saucito, San julian, Sabinas). Newmont was the second largest producer with 7.4 M Oz produced at Peñasquito. Other large producers comprise Southern Copper with 3.9 M Oz (undisclosed units), Pan American with 3.6 M Oz (La Colorada), First Majestic (Santa Elena, San Dimas, among others), Coeur Mining with 1.7 M Oz (Palmarejo), Fortuna Silver with 1.7 M Oz Ag (San José), Minera Frisco 1.1 M Oz (El Coronel, San Felipe, Tayahua, San Francisco del Oro, Concheño and Ocampo), Endeavour Silver 900 K Oz (El Cubo, Bolañitos, Guanceví, and El Compás) and Agnico Eagle 800 K Oz (Pinos Altos).
  • Alberto Aguilar, a respected columnist in business circles, elaborated on the hurdles the mining industry is going through with the current federal administration (it fell 3.7% on the third quarter, 2019). Among the issues mentioned is the contraction in mineral production as a result of the imposition of new taxes on mining in 2014, the investment of only 5 billion dollars in 2019 (8 billion in 2018), no concessions have been granted in 2019 and the recurrent illegal blockades without sign of easing. The latest hurdle thrown at the industry is the resolution by SEMARNAT (the Mexican environmental agency) that the Manifestation on Environmental Impact (MIA) for the Ixtaca project in Puebla was not to be granted until a legal suit on a claim no longer held by Minera Gorrion (Almaden Minerals) reaches a resolution. Exploration expenses so far have been $40 M dollars and another $117 M are still to be spent, along with $1.1 B (One billion) to be invested in eleven years (GPM Note.- The head of SEMARNAT, Victor Toledo, is known for its public and vocal anti-mining stance).

ON EXPLORATION

  • Vizsla Resources Corp. released high-grade channel sampling at its Panuco property in Sinaloa. The sampling locations are widespread within the property and the highlighted results comprise: 0.9 m @ 1,860 gpt Ag, 14.55 gpt Au at the Napoleon vein; 0.5 m @ 1,900 gpt Ag, 29.30 gpt Au at the San Antonio-Cordon de Oro vein; 3.6 m @ 691 gpt Ag, 7.00 gpt Au at the San Carlos-Animas vein; 5.95 m @ 584 gpt Ag, 3.97 gpt Au. Veins in the project have lengths of up to 2.8 km, with known ore shoots of up to 500 m in length.
  • Evrim Resources Corp. updated the description on its El Llanito del Nogal property in Sonora. The Suanse porphyry target, is a 1 Km by 600 m area of propylitic to potassic alteration. Soil sampling outlined a 600 m by 500 m Cu anomaly (>100 ppm) in areas of sheeted quartz-chalcopyrite-chlorite-magnetite veins. A ground magnetic survey outlined a donut-shaped anomaly 400 m in diameter and roughly coincident with the soil anomaly. The soil and magnetic anomalies extend northward onto the Suanse claim (see deals section below) where strong argillic, advanced argillic along with vuggy and massive quartz alteration are interpreted as a partially eroded lithocap.
  • Magna Gold Corp. reported assay results on the last four RC holes drilled at the La Lamosa target on its Mercedes project in Sonora. Highlighted intervals comprise: 38.10 m @ 0.67 gpt Au, 13.2 gpt Ag (including 6.10 m @ 1.43 gpt Au, 42.9 gpt Ag); 28.96 m @ 0.76 gpt Au, 8.9 gpt Ag (including 7.62 m @ 1.06 gpt Au, 9.3 gpt Ag); 21.34 m @ 1.61 gpt Au, 2.2 gpt Ag (including 3.05 m @ 6.99 gpt Au, 3.9 gpt Ag); 21.34 m @ 1.21 gpt Au, 11.8 gpt Ag (including 3.05 m @ 4.26 gpt Au). Other targets to follow up include the 600 m long La Lamosa East projection, the Mina de Oro 300 m by 150 m silicified/argillized andesite and rhyodacite, the Salto Colorado breccia 400 m by 150 m in size and Noche Buena, forming a prominent ridge in a 900 m by 800 m area with tourmaline breccias.

ON MINING

  • Premier Gold Mines Ltd. Reported operating results for the third quarter 2019, including figures from its operations in Mexico. At Mercedes, in Sonora, 159.4 K tonnes were milled @ 2.94 gpt Au, 22.6 gpt Ag, recovering 95.9% Au, 32.3% Ag to produce 14,481 Oz Au, 37.5 K Oz Ag at co-product cash cost $1,095 per Oz Au, and co-product AISC $1,354 Oz Au.
  • Golden Minerals Co. announced financial results for the third quarter 2019. The company had revenue of US$1.9 M and a net operating margin of $1.3 M related to the lease of the Velardeña oxide plant to Hecla Mining Co.. By the end of the period the company had cash and cash equivalents of $2.9 M. During October an agreement was achieved with Magellan Gold Corp. to option a 100% interest in the Santa Maria and Las Marias exploration properties in Chihuahua.
  • Consolidated Zinc Ltd. signed and offtake agreement with Industrias Peñoles S.A. de C.V. for zinc concentrate produced from the Plomosas mine to December 2020, with an option to be extended for a further two years.
  • Starcore International Mines Ltd. released production results from its San Martin mine in Queretaro for the three months ended on October 31, 2019. During the period 54.1 K tonnes were milled @ 1.78 gpt Au, 34.2 gpt Ag, with a recovery of 87.35% Au, 52.27% Ag to produce 3,050 Oz AuEq.
  • Americas Gold and Silver Corp. reported consolidated and operational results for Q3 2019, with undisclosed figures from its Mexican operations (Cosalá, Sinaloa).
  • Sierra Metals Inc. reported third quarter 2019 results, including information from its Mexican operations. The company is approaching is production target of 4,250 tpd at Bolivar and 1,200 tpd at Cusi, both in Chihuahua. Bolivar’s cash cost per CuEq Lb was $1.40, and the AISC $2.53. Cusi’s cash cost was $18.77 and AISC $24.60. During the period 9,923 m were drilled from the surface at Bolivar, and 3,220 m within the Cusi mine. At the end of the period cash and cash equivalents were $40.1 M, with a net debt of $50.9 M.
  • Odyssey Marine Exploration Inc. reported results for the third quarter 2019. Net loss for the period was $4.2 M due to several non-recurring items (Exploraciones Oceánicas project, Baja California Sur).
  • Fortuna Silver Mines Inc. reported third quarter results for 2019, including figures from its Mexican operations. At San José, in Oaxaca, 268 K tonnes were milled at a rate of 3,046 tpd and a grade of 219 gpt Ag, 1.40 gpt Au, recovering 91% Ag, 91% Au to produce 1.7 M Oz Ag and 10,942 Oz Au at cash cost $7.70 per Oz AgEq and an AISC of $10.80 per Oz AgEq.

ON FINANCING

  • Tamino Minerals Inc. informed that during the third week of September the company traded 145 M shares with a volume of US $1.1 M and a price per share appreciation of US$0.01” (El Volcan, Sonora).
  • Mexican Gold Corp. has received TSX Venture Exchange approval for the listing of 50 M warrants from the non-brokered private placement announced in past July.
  • Colibri Resource Corp. has entered into a loan agreement with Agnico Eagle Mines Ltd. For proceeds of US$300 K. The loan has a 2 year term at a 10% interest rate and proceeds are to be used on the Evelyin project in Sonora.

ON RESOURCES AND DEVELOPMENT

  • Defiance Silver Corp. is to start a two-phase technical program at its San Acacio property in Zacatecas. The program envisages evaluating the San Acacio resource at depth and brownfield targets on the Veta Grande system.
  • Endeavour Silver Corp. reported positive initial drill results for El Curso property, adjacent to Endeavour’s Guanaceví mine in Durango. The property includes the Santacruz vein, which is between two Endeavour’s developments. Drilling highlights comprise true width (tw) intervals: 5.2 m @ 0.75 gpt Au, 465 gpt Ag; 2.6 m @ 1.23 gpt Au, 558 gpt Ag; 2.1 m @ 2.51 gpt Au, 935 gpt Ag; 2.5 m @ 0.40 gpt Au, 204 gpt Ag; 5.1 m @ 3.07 gpt Au, 1,182 gpt Ag (including 0.5 m @ 15.22 gpt Au, 5,372 gpt Ag); 4.3 m @ 2.2 gpt Au, 1,021 gpt Ag; 2.7 m @ 1.37 gpt Au, 355 gpt Ag; 6.2 m @ 1.70 gpt Au, 635 gpt Ag.
  • Industrias Peñoles S.A.B de C.V. is to invest US$70 M in its Met-Mex installations (in Torreon, Coahuila) to better the silver recovery in zinc concentrates. In 2018, the company commissioned a US$327 M modification on the plant that avoids the generation of additional sulphuric acid by direct concentrate leaching instead of roasting, augmenting the capacity from 240 K to 360 K tonnes of zinc.
  • SilverCrest Metals Inc. announced expansion drill results from the Babi Vista vein in the Babicanora area of the Las Chispas project in Sonora. The highlighted true width (tw) intervals from these 17 holes comprise: 2.3 m @ 2.27 gpt Au, 215 gpt Ag; 0.4 m @ 3.55 gpt Au, 385 gpt Ag; 0.9 m @ 4.86 gpt Au, 600 gpt Ag; 0.4 m @ 1.10 gpt Au, 187 gpt Ag; 0.6 m @ 1.09 gpt Au, 92 gpt Ag; 2.0 m @ 1.84 gpt Au, 433 gpt Au, 1.2 m @ 2.56 gpt Au, 296 gpt Ag; 8.8 m @ 7.36 gpt Au, 584 gpt Ag (including 0.3 m @ 120.50 gpt Au, 9,510 gpt Ag; 0.7 m @ 18.15 gpt Au, 1,495 gpt Ag); 6.6 m @ 3.37 gpt Au, 250 gpt Ag (including 0.4 m @ 32.70 gpt Au, 2,940 gpt Ag). So far the high-grade footprint is 150 m along the strike of the vein and 200 m to depth, open in most directions, averaging 2.2 m @ 4.70 gpt Au, 401 gpt Ag.
  • Bacanora Lithium plc. updated on project activities at its Sonora Lithium project. Final design work for the mine site, infrastructure, concentrator and kiln sections of the processing plant is in progress. Detailed engineering plans for the design of the front-end concentrator and mechanical processing is underway, as well as the pyrometallurgical engineering, while the hydrometallurgical plant, including the production of the final battery grade lithium product will be engineered by Ganfeng.

ON DEALS AND CORPORATE ISSUES

  • Evrim Resources Corp. signed an agreement with San Marco Resources to acquire the Suanse property in Sonora. The 1,115 hectares property is within Evrim’s Llano del Nogal claim. Evrim can acquire 100% interest in the project by making total cash payments of $75 K and granting San Marco a 1% royalty half of which can be repurchased for $1 M. Cash payments are: $25 K on signing, $25 K on signing a JV or partnership with third parties and $25 K upon completion of 1,000 m of drilling.
  • Colibri Resource Corp. granted a two-year extension to its agreement with Agnico Eagle Mines Ltd., allowing Agnico to exclusively explore opportunities to dispose of Colibri’s working interest in its JV on the 5,564 hectares Pitaya project in Sonora.

ON SOCIAL RESPONSIBILITY

  • The Peñoles Community Center (Centro Comunitario Peñoles) in Torreon, Coahuila, is conducting courses for children and adults, including English, music, drawing, tae kwon do, tae chi and modern dance and dance for weight reduction.
  • Ternium organizes the Health Festivals (Ferias de La Salud) in Nuevo Leon, Coahuila, Colima, Jalisco, Michoacan, Puebla and San Luis Potosi, in coordination with several organizations and government institutions. Each year almost 6,000 persons receive this benefit, including cost-free diverse medical examinations (like sight, Papanicolau, mamographies) and flu shots.
  • The La Colorada race was held in Sonora for the third time. The race sponsored by Argonaut Gold was attended by hundreds of runners on the benches of La Colorada mine.
  • The technical school Roberto Rocca (partly supported by Ternium) is to represent Mexico in the World’s Educative Robotics Tournament, to be held in Shanghai, China.
  • The “Doctor Vagón” program sponsored by the Grupo Mexico Foundation (a train adapted for medical services) was four days at Gomez Palacio, Durango, with the aid of the local municipality. During that time 2,200 services were provided to the 550 persons that registered to the effect.
  • In Topia, Durango, Minera La Brisa supported the municipality providing cleaning equipment.
  • Industrias Mineras Peñoles announced that to 2018 up to 35% of the energy requirements at its mining units is fulfilled by renewable energy sources. The company is striving to reach at least a 50% in 2020 and to be completely reliant on renewable energy sources by 2028.

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: Gold recovered by artisanal methods from orogenic style quartz veins in Oaxaca.. Picture by Jorge Cirett.

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The Mining and Exploration News in Mexico: Highlights on the First Week of November, 2019.

Mn oxide-calcite fault vein-bx

By Miguel A Heredia

During the forty-five week of the year (November 4th to November 10th, 2019), at least 37 press releases were announced by companies working in Mexico, with nine communicating production and financial results, eight disclosing deals and corporate issues, six announcing financial rounds, five informing on exploration results, four reporting on resources and development of their projects, three commenting on Mexican issues, and two discussing issues on social responsibility.  ON MEXICO ISSUES, according to the Director of Mines of Zacatecas, there are five new mine projects in the state to be developed in 2020. Newmont-Goldcorp restated the dialogue process with the Cedros community on its Peñasquito mines in Zacatecas. Local communities and small local merchants expressed their support for the continuity of the Peñasquito mine. ON EXPLORATION, In Sonora, Silver Viper mobilized an exploration crew to its Virginia project to commence a drilling program at the El Rubi target area, and Oceanus reported underground and surface sampling results from its El Tigre project. In Sinaloa, Vizsla reported underground sampling from its Panuco-Copala project.  In Zacatecas, Advance Gold outlined a km long by 400-500m wide chargeability anomaly at its Tabasqueña project. In Jalisco, GoGold released drill results from 4 holes collared at its Los Ricos project.  ON MINING, Alio Gold, Argonaut, Coeur, Endeavour, Excellon, First Majestic, Hecla, Leagold, and Pan American presented Q3 2019 production and financial results from its Mexican operations.  ON FINANCING, Discovery Metals closed a non-brokered private placement for gross proceeds of $19M (Cordero project, Chihuahua). Goldplay closed a brokered private placement for $3M (San Marcial project, Sinaloa).Solaris Copper announced its intention to undertake a non-brokered private placement to raise gross proceeds of up to  CAD $5.5M (La Verde, Michoacan). Advance Gold closed the first tranche of a non-brokered private placement for gross proceeds of $113K (Tabasqueña project, Zacatecas). Orex announced that intends to undertake a non-brokered private placement to raise gross proceeds of up to $1M (Sandra-Escobar project, Durango). San Marco revised its previously announced non-brokered private placement and now intends to rise gross proceeds for up to CAD $376.6K. It also closed subscription books for unit and flow through shares private placement for gross proceeds of CAD $40K (Chunibas project, Sonora). ON RESOURCES AND DEVELOPMENT, Capstone announced high grade Cu-Ag results from 103 infill and step-out drill holes at its Cozamin mine in Zacatecas. Vizsla closed its option agreement to acquire 100% interest of Panuco-Copala project in Sinaloa. Torex extended mineralization 150m below current reserves at its El Limon Deep deposit in Guerrero. Mexus announced that its Merrill Crowe Au recover plant is complete and operational at its Santa Elena mine in Sonora. Mag Silver informed about the activities carried out at its Juanicipio project mine development in Zacatecas during Q3, 2019. ON DEALS AND CORPORATE ISSUES, Colibri received TSX approval for its acquisition of Yaque Minerals (Mezquite and Jackie projects, Sonora). Vizsla closed its option agreement to acquire 100% interest in Panuco-Copala property in Sinaloa. Great Panther announced the appointment of its VP Exploration and VP People & Culture (Topia mine, Durango). Solaris Copper announced management changes of its team (La Verde project, Michoacan). Starcore presented results from its annual general meeting of shareholders (San Martin mine, Queretaro). Mako Mining provided a corporate update and status of its Mexican operation. Compañía Minera Cuzcatlán, a subsidiary of Fortuna Silver Mines revealed that it is analyzing to invest in a new plant in Mexico (San Jose mine, Oaxaca). Minera Autlán announced its intention to raise its commitment to gold (Lluvia de Oro-La Jojoba, Sonora). ON SOCIAL RESPONSIBILITY, Agnico Eagle participated in the reconstruction of the drinking water system at Yepachi, Chihuahua, with a total investment of MXP $4M. Argonaut participated in multiple social programs related to their Mexican operations.

ON MEXICO ISSUES

  • The Secretariat of Economy in Zacatecas, through its Director of Mines, revealed that new five mines will be developed in the state in 2020, standing out Juanicipio in Fresnillo, Camino Rojo in Mazapil , and San Nicolas in Villa Garcia municipalities. Zacatecas is one of the most prolific areas for mining in the country; however, he is aware of the social problems faced by some of the mining companies which operate in the state. He informed that the local government seeks to generate the conditions for mining companies to invest safely in new projects.
  • Newmont-Goldcorp Corporation, restated the dialogue process with the community of Cedros, municipality of Mazapil on Peñasquito mine. A new agreement was signed for the community delegates, with a strong commitment of both parties, by the community not to block again the mine and from the company to attend on time the concerns and proposal from the Ejido.
  • Local communities and small local merchants, expressed their support for the continuity of Peñasquito mine. The communities of Cedros, El Rosario, La Pardita, Sábana Grande, Tanquecillos, Tecolotes, Mazapil and El Trigo said they are in favor of the Peñasquito Mine, stating that it has provided benefits to their families. At a press conference, representatives of the aforementioned communities reported that thanks to the company they have work, so they asked the state government to support them and that, through the dialogue avoids a new block. They affirmed that they are against the blockades and the definitive closure of the mine, since this one supports around 25 communities. They said the mining company has provided a source of work to the people of the communities and do not want it to disappear.

ON EXPLORATION

  • Silver Viper Minerals Corp., mobilized an exploration crew to its Virginia project in Sonora to commence a phase II drilling program at El Rubi target area, where previous drilling carried out in 2018 intersected 3.18 g/t Au and 228 g/t Ag (6.42 g/t AuEq) over 6m of true width. Phase II will test the extension of this structure along trend and at depth on 50m sections with the aim of generating enough information for maiden resource estimation at El Rubi.
  • Oceanus Resources Corporation, presented underground and surface sampling results from the Caleigh, Canon Combination and Protectora Veins at its El Tigre project in Sonora. In the Caleigh Vein, underground channel sample ETU-1007 returned 1,896 g/t Ag and 6.4 g/t Au (2,376 g/t AgEq) over a true width of 0.50m, and ETU-1006 returned 1,971 g/t Ag and 4.64 g/t Au (2,318 g/t AgEq) over a true width of 0.50m. In the Canon Combination Vein, underground channel sample ETU-1012 returned 1,794 g/t Ag and 0.25 g/t Au (1,813 g/t AgEq) over a true width of 0.50m. In the Protectora Vein, underground channel sample returned 378 g/t Ag and 2.01 g/t Au (529 g/t AgEq) over a true width of 0.50m. Surface samples collected on this vein reported 374 g/t Ag and 3.32 g/t Au over 0.7m wide; 192 g/t Ag and 0.57 g/t Au (235 g/t AgEq) over 0.5m wide; and 169 g/t Ag and 1.0 g/t Au (244 g/t AgEq) over 0.50m wide. “The results from the mapping and sampling of the underground workings and at surface present a series of high priority drill targets over a 2 kilometer strike length north of the old El Tigre Mine, which we intend to drill.”
  • Vizsla Resources Corp., reported encouraging underground sampling results from its Panuco-Copala project in Sinaloa. Highlights results from the underground sampling at the San Carlos mine are 5.65 g/t Au and 612 g/t Ag (1,120 g/t AgEq) over  6m on development level 4, including 10.5 g/t Au and 1,120 g/t Ag (1,960 g/t AgEq) over 3m; 2.55 g/t Au and 517 g/t Ag (721 g/t AgEq) over 4.5m on development level 5, including 3.51 g/t Au and 721 g/t Ag (1.002 g/t AgEq) over 3m; and 2.12 g/t Au and 298 g/t Ag (468 g/t AgEq) over 5.5m on development level 4, including 3.76 g/t Au and 591 g/t Ag (892 g/t AgEq) over 1.5m. These results are part of a mapping and sampling program to better understand mineralization at Panuco project.
  • Advance Gold Corp., completed a second phase of a 3D-IP survey and has outlined a N-S trending chargeability anomaly of 1km long by 400-500m wide on its Tabasquena project in Zacatecas. It remains open in both directions as well as at depth. A number of boreholes are now planned to intersect this anomaly.
  • GoGold Resources Inc., released drill results from 4 new holes collared at its Los Ricos project in Jalisco. Three of the 4 holes were drilled at El Troce area and significant intersections were encountered in hole LRGG-19-059 with 0.94 g/t Au and 134 g/t Ag (2.72 g/t AuEq) over 11m, including 1.95 g/t Au and 277 g/t Ag (5.65 g/t AuEq) over 3.5m; and hole LRGG-19-60 with 0.32 g/t Au and 66 g/t Ag (1.19 g/t AuEq) over 16m, including 83 g/t Au and 162 g/t Ag (2.98 g/t AuEq) over 3m. Hole LRGG-19-57 was drilled at the Main area and intersected 0.91 g/t Au and 131 g/t Ag (2.65 g/t AuEq) over 14.1m, including 2.14 g/t Au and 253 g/t Ag (5.50 g/t AuEq) over 5.3m. GoGold completed in Mid-October 2019, a phase 1 drilling program which consisted of 10,000m, and has already started a second phase of drilling, adding a third rig  machine to the program.

ON MINING

  • Alio Gold Inc., continued with processing of low grade stock pile at its san Francisco mine in Sonora, resulting in the placement of 12.8K Oz Au on the pad. The company announced that the low grade stock pile will be exhausted in Q4, 2019, after which crushing will cease, and operations will solely focus on recovery of the residual inventory ounces.
  • Argonaut Gold Inc., presented Q3, 2019 production and financial results from its Mexican operations. The company produced 44.7K Oz AuEq at a cash cost of USD $901 per Oz Au produced and sold 45.6K Oz Au at an AISC of USD $1,134 per Oz Au sold. It also reported revenue for USD $66.8, cash flow from operating activities before changes in operating working capital of USD $17.2M, net income of USD $4.9M, adjusted net income of USD $6.5M, and a net cash increase of USD $11.7M. Argonaut also reported mine by mine production results for the period Q3, 2019. At El Castillo Complex in Durango, it milled 4.8M tonnes of 0.35 g/t Au to produced 30.3K Oz AuEq. At El Castillo, 2.4M tonnes of 0.39 g/t Au were milled to produce 14.3K Oz Au and 23.3K Oz Ag. This mine sold 14.6K Oz Au and 16.3K Oz Ag in this quarterly period, at a cash cost of $1,038 per Oz Au sold. At San Agustin, 2.4M tonnes were milled with a grade of 0.32 g/t Au to produce 15.2K Oz Au and 36.9K Oz Ag. This mine sold 15.7K Oz Au and 15K Oz Ag in this quarterly period, at a cash cost of $848 per Oz Au sold. At La Colorada, Sonora, the company milled 1.45M tonnes of 0.6 g/t Au, to produced 14K Oz Au and 33.6K Oz Ag. La Colorada sold 13.8K Oz Au and 34K Oz Ag at a cash cost of $800 per Oz Au sold.
  • Coeur Mining Inc., announced Q3, 2019 production and financial results from its Palmarejo mine in Chihuahua. It milled 442,464 tons of 2.8 g/t Au and 152 g/t Ag to, with a metallurgical recoveries of 81.7% and 79.6% respectively, to produce 31.8K Oz Au and 1.72M Oz Ag. Adjusted costs applicable to sales were USD $660 per Oz Au and USD $8.95 per Oz Ag. Coeur reported cash flow from operating activities of USD $36.3M and total capital expenditures of USD $7.8M for a total free cash flow of USD $28.5M.
  • Endeavour Silver Corp., reported consolidated Q3, 2019 financial and production results from its four Mexican operations: Guanacevi mine in Durango, Bolañitos and El Cubo in Guanajuato, and El Compas in Zacatecas. The company processed 234, 196 tonnes to produce 948.5K Oz Ag and 9.7K Oz Au (1.72M Oz AgEq), at a cash cost of $11.51 per Oz Ag produced and AISC of $21.53.
  • Excellon Resources Inc., reported Q3, 2019 production and financial results from its Platosa mine in Durango. The company mined 18,167 tonnes and processed 17,235 tonnes with grades of 512 g/t Ag, 4.4% Pb, and 6% Zn, to produce 257.5K Oz Ag, 1.3M Lb Pb, and 1.65M Lb Zn (427.1K Oz AgEq), at a cash cost per Oz Ag payable of $18.18 and AISC net of by-products per Oz Ag payable of $28.46. Metallurgical recoveries were 87.2%, 77.7%, and 76.5% for Ag, Pb, and Zn respectively. Excellon reported revenues for $5.9M, a net loss of $2.9M, and a net working capital of $$9.0M.
  • First Majestic Silver Corp., presented Q3 production results from its Mexican operations. The company reported revenues for $97M, a net loss of $8.6M, operating cash flow before movements in working capital and taxes of $34.6M, cash and cash equivalent of $118.6M, and a working capital of $149.2M. The below table shows the mine by mine production results:

  • Hecla Mining Company, announced Q3 production and financial results from its San Sebastian mine in Durango. It produced 541.6K Oz Ag and 3.7K Oz Au at an AISC of $$7.21 per Oz Ag.
  • Leagold Mining Corporation, produced from its Los Filos mine in Guerrero, 40,922 Oz Au at an AISC of $1,001 per Oz Au produced, and sold 41,343 Oz Au during Q3, 2019, with associated revenue of $58.6M.
  • Pan America Silver Corp., reported Q3, 2019 production and financial results from its la Colorada, Zacatecas and Dolores, Chihuahua mines. At La Colorada, the company produced 2.1M Oz Ag and 1,200 Oz Au, at a cash cost of $2.82 per Oz Ag and an AISC of $4.03 per Oz Ag. At Dolores, it produced 1.5M Oz Ag and 33.1K Oz Au, at an AISC of $7.45 per Oz.

ON FINANCING

  • Discovery Metals Corp., closed a non-brokered private placement for gross proceeds of $19M, including $5M investment from Eric Sprott, which represents 19.9% of the interest of Discovery on a non-diluted basis. Proceeds will be used to continue the exploration programs at its exploration properties (Cordero project, Chihuahua, Puerto Rico project, Coahuila).
  • Goldplay Exploration Ltd., closed a brokered private placement financing of $3M. Gross proceeds will be used to continue resource expansion drilling including underground and surface exploration on its san Marcial project in Sinaloa.
  • Solaris Copper Inc., announced its intention to undertake a non-brokered private placement to raise gross proceeds of up to CAD $5.5M. Gross proceeds will be used to advance permitting, exploration, and drilling activities at their projects. (La Verde project, Michoacan).
  • Advance Gold Corp., closed the first tranche of a non-brokered private placement for gross proceeds of $113K. The company will use the gross proceeds to advance its Tabasqueña project in Zacatecas.
  • Orex Minerals Inc., announced its intention to undertake a non-brokered private placement to raise gross proceeds of up to $1M. Orex will use the net proceeds to maintain its 40% share of the Sandra Escobar project in Durango and fund its 40% share of the upcoming work program, and to make the necessary payments under its option to acquire 100% of the San Luis del Cordero project, Durango, and for general corporate and capital purposes.
  • San Marco Resources Inc., revised its previously announced non-brokered private placement and now intends to rise gross proceeds for up to CAD $376.6K. It also closed subscription books for unit and flow through shares private placement for gross proceeds of CAD $40K (Chunibas project, Sonora).

ON RESOURCES AND DEVELOPMENT

  •  Capstone Mining Corp., announced high grade Cu-Ag results from 103 infill and step-out drill holes from 200 hole program at its Cozamin mine in Zacatecas. Aim of this program is more than double the current reserve base. Significant drill intersection were encountered in hole CG-19-U498 with 5.02% Cu, 0.4% Zn, and 72 g/t Ag over a true width of 12.3m, including 9.02% Cu, 0.7% Zn, and 127 g/t Ag; in hole CG-18-S381 with 7.27% Cu, 0.3% Zn, and 220 g/t Ag over a true width of 5.1m; in hole CG-18-S372 with 5.53% Cu, 0.2% Zn, and 117 g/t Ag over a true width of 20.1m, including 11.32% Cu, 0.3% Zn, and 242 g/t Ag over a true width of 6.4m.
  • Torex Gold Resources Inc., reported drilling results from its 2019 exploration program at its El Limon-Guajes complex deposit in Guerrero. The drilling program has been successful in extending mineralization 150m below current reserves at its El Limon Deep deposit. Significant mineralization was encountered in hole LDUG-039 with 15.6 g/t Au over 38m; in hole LDUG-049 with 20.9 g/t Au over 12m, and in hole LDUG-056 with 15.7 g/t Au over 16.8m. El Limon Deep deposit remains open down dip and along strike.
  • Mexus Gold US, announced that its Merrill Crowe Au recovery plant at its Santa Elena mine in Sonora is complete and operational. “The plant is capable of handling Mexus’3000 ton a week mining operation and will allow for future expansion as well”.
  • Mag Silver Corp., informed about the activities carried out at its Juanicipio project mine development in Zacatecas during Q3, 2019. The company reported that “earthmoving and foundation preparation commenced for the construction of the 4,000 tpd beneficiation plant. Mill fabrication is progressing on schedule, and both the SAG and ball mills are expected to be shipped to site early 2020. Flotation cells, processing tanks and minor process equipment pieces are starting to arrive on site. Thickener tanks and drive and rakes fabrication are well advanced. Underground development has now reached 23Km of development and continues. According to the operator, Fresnillo plc, permitting for the tailings impoundments should be completed in the fourth quarter of this year and mill construction is on track for commissioning by late 2020”.

 ON DEALS AND CORPORATE ISSUES

  • Colibri Resources Corporation, received TSX approval for its acquisition of Yaque Minerals by a CAD$ 1M payment by way of a 5-years convertible debenture bearing 2.5% annual interest and carries a $0.20 per share conversion privilege. The Yaque´s acquisition includes two projects in Sonora: El Mezquite and Jackie, located less than 10Km east of the Nicho deposit owned by Minera Alamos, which is expected to start production in 2020, with initial production of 25K-30K Oz Au per year, with a mine life of more than 6 years. El Mezquite is a 2km by 1km N-S trending hydrothermal alteration zone on silicified feldspar porphyry, with a potential Au target area of at least 600m by 300m. A 3D-IP survey was carried out on this anomalous area which resulted in the identification of chargeability and resistivity anomalies underlying the surface area of potential. 321 grab samples have been collected of which 13% returned Au values oscillating from 0.1 to 3.41 g/t Au. Jackie is located 2km south of the El Mezquite but it has seen very little exploration work to date. Some prospecting work is planned for 2020.
  • Vizsla Resources Corp., closed its previously announced option agreement on November 5, to acquire 100% interest in Panuco-Copala property in Sinaloa. Vizsla confirmed that it has previously loaned USD $700K to Canam in order to satisfy the initial payment due under the terms of the options.
  • Great Panther Mines Limited, announced the appointment of its VP Exploration and VP People & Culture (Topia mine, Durango).
  • Solaris Copper Inc., announced management changes of its team, appointed its CEO, CFO, VP Corporate Affairs and Corporate Secretary, and a new member to its Board of Directors (La Verde project, Michoacan).
  • Starcore International Mines Ltd., reported results from its annual general meeting of shareholders (San Martin mine, Queretaro).
  • Mako Mining Corp., provided a corporate update and status of its Mexican operation. At its la Trinidad mine in Sinaloa, Au production is nearing conclusion, with Au sales being used to fund ongoing reclamation and severance costs. Mining and process plant equipment has been moved to USA and the lab equipment will be moved to Nicaragua soon. Mako has reported that has not been successful in receiving any insurance for damages caused by Hurricane Willa at its Trinidad mine in October, 2018. It has filed a lawsuit for over USD $7M against the Insurance Company. Mako also announced that it has reached an agreement with the primary mining contractor on the debt of approximately USD $11.3M. “Despite being ring-fenced from the rest of Mako’s corporate structure, the Company chose to settle with the contractor by making a USD $4M upfront payment and agreeing to make two additional USD $1M payments 12 months and 24 months from signing of the settlement agreement.  As this liability was being accounted for at approximately USD$11.3M, a substantial accounting gain is expected in the next quarterly report.
  • Compañía Minera Cuzcatlán , a subsidiary of Fortuna Silver Mines, analyzes to invest in a new mining plant located 40km from its San Jose mine, Oaxaca. The company asked government support to mediate between the company and the communities, since the new plant will require between USD $200-300M. The decision has to be taken next year, so they need the support of the authorities to reach a social agreement with the communities.
  • Compañía Minera Autlán, A.B .de C.V., announced its intention to raise its commitment to gold. The intention of that business and the integration towards gold was always to reach 20 to 25% of the top line and about 30 to 35% of the operating cash flow (EBITDA). In addition, the company estimates they will close this year with and investment of USD $35M to support other areas of its business, to add USD $45 M in an integrated way (Lluvia de Oro-La Jojoba, Sonora).

ON SOCIAL RESPONSIBILITY

  • Agnico Eagle Mines Limited, participated, along with the municipal presidency of Yepachi, Chihuahua, in the reconstruction of the drinking water system for this community. Yepachi is the second largest community in this area and has years of lag in terms of the supply and quality of drinking water. A total of MXP $4M will be invested, an amount that will be contributed by 50% by the municipal presidency and the other part will be borne by Agnico Eagle, which operates within the territory of the Yepachi Ejido.
  • Argonaut Gold Inc., has participated in several programs with the communities where the company operates. At La Colorada, Sonora, Argonaut signed a health collaborative agreement with the Centro de Rehabilitación Integral Teletón and hosted a cultural event with the Cultural Institute of Sonora. In Durango, participated in collaboration with the local government in an interactive learning pavilion where local attendees and families could know about the company´s mining activities and projects. It also sponsored an international forum on geological and mining heritage organized by the Universidad Autónoma de Baja California Sur, to discuss possible historical tourism and ecotourism in mining communities. Finally, Argonaut hosted students’ interactive workshops in the municipality of Dolores, Hidalgo in the village of san Anton in Guanajuato, Mexico, and hosted a soprano singer and the Latin American quartet at the Mining Cultural Centre of the Mexican chamber of commerce in Mexico City.

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, a Mn oxides-calcite fault vein-bx structure from a prospect in Chihuahua, Mexico.  Photo by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the Fifth Week of October, 2019

IMG_0970 - copia

By Jorge Cirett

During the 44th week of the year (October 28th to November 3rd, 2019), at least 33 press releases were forwarde by companies working in Mexico. ON MEXICO ISSUES, The Morena party reassigned the Mining Fund, taking it away from its intended purpose of helping and developing mining communities. All big organizations related to mining in Mexico presented a petition to the president to rebuke the channelling of the Mining Fund away from its intended goal of helping mining communities. The governors of Sonora, Durango, Zacatecas and Guerrero sent a letter to the president of Mexico asking not to affect the communities by withdrawing the Mining Fund. On other matters, the AIMMGM informed mining companies expect to invest more than US$26 billion in six years. The illegal blockade on the Peñasquito mine in Zacatecas was lifted, with negotiations to continue shortly. The El Castillo mine access in Durango was illegally blocked for a few days, and then released, while negotiations proceed with community involved. ON EXPLORATION, in Sonora, Magna Gold informed it has two projects in the state, Mercedes near Yecora and San Judas, near Trincheras. In Chihuahua, Wealth Minerals negotiated surface access to its Valsequillo project. In Durango, Gainey Capital halted drilling activities while discussions with the local indigenous groups proceed.  ON MINING, Gold Resource, Consolidated Zinc, McEwen Mining, Santacruz Silver, Premier Gold, Torex Gold, Americas Silver and sierra Metals released third quarter 2019 production results. Telson Mining is to re-commence mining at Campo Morado in Guerrero. ON FINANCING, Goldplay Exploration filed an amended and restated condensed interim consolidated financial statement. Oroco Resource informed the exercising of warrants for $720 K. Starcore Interantional has resumed trading on the OTC Pink market. ON RESOURCES AND DEVELOPMENT, Pan American Silver released impressive results from 14,300 m of drilling at its La Colorada mine in Zacatecas. Mexican Gold Corp updated on its current drilling program at Las Minas, Veracruz. ON DEALS AND CORPORATE ISSUES, Telson Mining is to re-start mining at Campo Morado, in Guerrero, under a notice of default and demand for payment by Nyrstar. Prime Mining signed a public relations contract with Brisco Capital Partners. Oceanus is using now a service for virtual tours on remote locations. Santacruz and Peñoles extended a lease agreement on the Zimapan mine in Hidalgo. Almaden Minerals was informed by SEMARNAT that the permitting process for its Ixtaca mine in Puebla is suspended until a judicial resolution is reached (the head of the institution is openly against open pit mining).  ON SOCIAL RESPONSIBILITY. Alamos Gold reunited all the students under its scholarship program in three venues, Matarachi, Sahuaripa and Hermosillo.

ON MEXICO ISSUES

  • Last week the Morena party majority reassigned the Mining Fund (Fondo para el Desarrollo Regional Sustentable de Estados y Municipios Mineros) to education spending.  The fund is gathered on a 7% (increased to 7.5% in gold and silver) royalties on extracted minerals implemented in 2014 to aid with the infrastructure, health, education and sustainability of mining communities.
  • The Asociación de Ingenieros de Minas, Metalurgistas y Geólogos de México (AIMMGM) informed that mining companies expect to invest more than US$26 billion in six years. If such investments come to be realized, 50 thousand direct jobs and 274 thousand indirect jobs could be generated, and mining companies would pay an additional 23,500 million in taxes. Just last year the industry paid 46,159 million pesos on income tax (Impuesto sobre la renta, ISR).
  • On October 26th, the Zacatecas governor Alejandro Tello informed that security forces are inviting the group that (illegally) blocks the entrance to the Peñasquito mine to leave the site. The governor also informed that a number of the blockers might be pursued judicially, some by the state and some by the federal government. He stated that he’s is been in contact with the sub secretary of the interior (Subsecretario de Gobernación), with whom also the company executives, communal farmers (ejidatarios) and the state government have been in dialogue rounds.
  • The Cámara Minera de México (CAMIMEX), the Grupo de Minería de la Cámara de Comercio de Canadá, the Asociación de Ingenieros de Minas, Metalurgistas y Geológos de México, the organization in mining Mujeres WIM de México and the Colegio de Ingenieros de Minas, Metalurgistas y Geólogos de México received with great worry de Senate decision to approve an unjust redistribution of the Mining Fund (Fondo Minero), braking the spirit on which the fund was created to benefit mining communities. The priority for the sector is that the resources reach the communities and municipalities where they were generated, contributing with independent actions by mining companies to the social welfare and community development in areas away from urban centers, aiding to reach greater life quality, development and wellbeing. Miners are appalled by the Congress decision, same that dismissed petitions by state governors, municipality presidents, from the industry and mining communities to guarantee the return of funds to these localities. A strong and respectful call is made to the authorities to reconsider the distribution methodology for the resources and operational rules of the fund, where it should be clearly established that these funds are to be funnelled exclusively to mining communities, municipalities and states. The mining industry refresh its compromise to continue to be an agent of change, a block that forwards sustainability practices and is and active player that contributes to a greater well-being for thousands of miner families and millions of Mexicans. We consider ourselves as the best federal government ally to achieve the more valuable social objectives sought by new government project. The Camara Minera de Mexico is the first camera of industries formed in the country, representing the interests of the mining-metallurgical industry in the country.
  • Argonaut Gold Inc. informed on an illegal blockade at its El Castillo mine in Durango. The Company has a legal and binding agreement in place with Atotonilco ejido that was signed and recognized by both the Atotonilco ejido and the Mexican government in 2012 and runs through 2022. The blockade lifting was announced on October 30, with an agreement with the ejido pending to be ratified on November 11.
  • Newmont Goldcorp confirmed that free access to its Peñasquito installations in  Zacatecas is complete as of last Sunday (Oct. 27). Access to the mine had been blocked by a small group of communal agriculture workers (ejidatarios) and truckdrivers. The company is to restart the social investment programmes in the next few days, and expects to initiate on November 19 the new program “Juntos Dejamos Legado”, which aims to support schools and sport activities in 25 nearby communities. The ending of the blockade was achieved with government executives having dialog with the blockers, with the presence of the national guard (Guardia Nacional) and the state police (Policía Estatal Preventiva), stressing that further negotiations were to proceed only without the blockade in place.
  • The governors of Sonora, Claudia Pavlovich; Zacatecas, Alejandro Tello; Durango, José Rosas, and Guerrero, Héctor Astudillo, sent a letter to the president of México asking not to affect the communities by withdrawing the mining fund.

ON EXPLORATION

  • Gainey Capital Corp. temporarily halted all drilling activities at its Las Margaritas property in Durango, following discussions with the local indigenous groups (Las Margaritas, Durango).
  • Magna Gold Corp. informed it has two projects in Sonora. The flagship 1,239 ha Mercedes project in Yecora, and the recently acquired San Judas project in Trincheras.
  • Wealth Minerals Ltd. successfully negotiated surface access rights to its Valsequillo property in Chihuahua. The company has an option to acquire 100% interest in the 2,840 ha property. Past artisanal mining activity concentrated on a number of epithermal, Zn-Pb-Cu-Ag veins, stockworks and silicified zones concentrated within two NW trending corridors. Rock sample results of up to 2.68 gpt Au, 629 gpt Ag, 9.5% Cu, 16.5% Pb, 6.4% Zn have been obtained.

ON MINING

  • Telson Mining Corp. announced the recommence of mining operations at its Campo Morado mine in Guerrero. This is the result of improved relations with the local community and a better zinc price. The company anticipates initiating full mining activities and processing operations near the beginning of December 2019.
  • Argonaut Gold Inc. informed on an illegal blockade at its El Castillo mine in Durango. The Company has a legal and binding agreement in place with Atotonilco ejido that was signed and recognized by both the Atotonilco ejido and the Mexican government in 2012 and runs through 2022.
  • Gold Resource Corp. reported gold production for the third quarter of 2019, including figures from its Oaxaca Mining Unit. The Arista mine milled 163.3 K tonnes @ 1.76 gpt Au, 85 gpt Ag, 0.39% Cu, 1.9% Pb, 4.7% Zn; the Aguila open pit mine milled 3.6 K tonnes @ 1.49 gpt Au, 58 gpt Ag; the Mirador mine milled 11.7 K tonnes @ 0.76 gpt Au, 197 gpt Ag. In total, 178.6 K tonnes were milled at a rate of 2,007 tonnes per day, to produce 7,462 Oz Au, 473.8 K Oz Ag, 492 tonnes Cu, 2,459 tonnes Pb, 6,057 tonnes Zn. Total cash cost after by-product credits was $197 per AuEq ounce and total all-in sustaining cost was $520 per AuEq ounce for the period.
  • Consolidated Zinc Ltd. released its third quarter 2019 activities report. The acquisition of the Plomosas mine in Chihuahua was completed, getting the remaining 10% ownership in exchange for a 1% NSR royalty. During the quarter 7,511 tonnes were mined @ 13.5% Zn, 8.2% Pb, and 9,120 tonnes were processed @ 12.5% Zn, 7.9% Pb.
  • McEwen Mining Inc. presented its third quarter 2019 report, including activities at its El Gallo mine in Mexico. During the third quarter the mine produced 3,057 Oz AuEq from residual leaching, at cash cost $1,153 and $1,177 AISC per Oz AuEq. Work on the Fenix Project feasibility study and permitting is progressing.
  • Pan American Silver Corp. released results from 14,300 m of drilling during the third quarter 2019 on its La Colorada mine in Zacatecas (see Resources and Development section) .
  • Santacruz Silver Mining Ltd. reported its third quarter 2019 production. Consolidated production was 956.5 K Oz AgEq. At Zimapan, in Hidalgo, 82.2 K tonnes were processed @ 75 gpt Ag, 0.59% Pb, 2.28% Zn, 0.48% Cu to produce 151.5 K Oz Ag (75% recovery), 463 tonnes Pb, 1,492 tonnes Zn, 316 tonnes Cu. At Veta Grande, in Zacatecas, 44 K tonnes were processed @ 99 gpt Ag, 0.24 gpt Au, 1.45% Pb, 2.11% Zn to produce 62.4 K Oz Ag (45% recovery), 139 Oz Au, 370 tonnes Pb, 519 tonnes Zn. At Rosario, in San Luis Potosi, 22 K tonnes were processed @ 65 gpt Ag, 0.25 gpt Au, 0.40% Pb, 2.04% Zn to produce 43 K Oz Ag (93% recovery).
  • Premier Gold Mines Ltd. announced Q3 2019 production results, including 14,481 Oz Au and 37.5 K Oz Ag from its Mexican operations at Mercedes, in Sonora.
  • Torex Gold Resources Inc. reported third quarter 2019 results. At its El Limon-Guajes mine in Guerrero, the company produced 138,145 Oz Au, mine production averaged 144,989 tonnes per day (tpd), mine ore production averaged 15,391 tpd @ 3.19 gpt Au, with a plant throughput of 12,380 tpd @ 4.11 gpt Au, recovering 89% Au at cash cost $561 and AISC of $675.
  • Americas Gold and Silver Corp. released third quarter 2019 production results, including figures from its Cosalá operations in Sinaloa. At the site 151.2 K tonnes were milled to produce 128.8 K Oz Ag, 10.1 M Lb Zn, 3.7 M Lb Pb (or 1 M Oz AgEq), at cash cost -$10.82 per Oz Ag, and an AISC of -$1.49 per Oz Ag after sub-product credits.
  • Sierra Metals Inc. reported its Q3-2019 financial results, not including figures from its operations in Mexico. The company had $29.0 M of cash and cash equivalents at the end of the period (Bolivar, Chihuahua).

ON FINANCING

  • Goldplay Exploration Ltd. filed an amended and restated condensed interim consolidated financial statement and management discussion and analysis for the six months ended June 30, 2019, adding the following disclosure “in Note 11 – Related Party Transactions; The Company issued 480,000 common shares valued at $60,000 as debt settlement with officers and a director of the Company and in Note 12 – Share Capital and Reserves; the Company issued 600,000 common shares valued at $75,000 as debt settlement including $60,000 to related parties” (San Marcial, Sinaloa).
  • Oroco Resource Corp. informed that warrant holders from a unit offering completed on April 2018 have fully exercised the purchase warrants providing the company $720 K (Santo Tomás, Sinaloa).
  • Starcore International Mines Ltd. announced it has resumed trading on the OTC Pink markets in USA under the symbol “SHVLF” (San Martin, Queretaro).

ON RESOURCES AND DEVELOPMENT

  • Pan American Silver Corp. released results (impressive) from 14,300 m of drilling during the third quarter on the La Colorada skarn discovery in Zacatecas. Drill highlights comprise 250.9 m @ 40 gpt Ag, 0.08% Cu, 2.6% Pb, 3.4% Zn (including 78.9 m @ 60 gpt Ag, 0.09% Cu, 3.9% Pb, 4.8% Zn); 72.3 m @ 37 gpt Ag, 0.16% Cu, 3.8% Pb, 6.3% Zn and 56.6 m @ 39 gpt Ag, 0.10% Cu, 3.3% Pb, 6.6% Zn; 124.8 m @ 42 gpt Ag, 0.08% Cu, 2.4% Pb, 3.1% Zn; 252.9 m @ 67 gpt Ag, 0.19% Cu, 3.8% Pb, 6.6% Zn (including 27.3 m @ 108 gpt Ag, 0.20% Cu, 8.1% Pb, 13.7% Zn and 148.6 m @ 81 gpt Ag, 0.23% Cu, 4.4% Pb, 7.7% Zn); 132.5 m @ 56 gpt Ag, 0.19% Cu, 3.8% Pb, 6.3% Zn and 139.2 m @ 54 gpt Ag, 0.15% Cu, 1.8% Pb, 5.9% Zn; 379.0 m @ 54 gpt Ag, 0.50% Cu, 2.0% Pb, 3.7% Zn (including 66.7 m @ 154 gpt Ag, 2.07% Cu, 1.0% Pb, 1.6% Zn).
  • Mexican Gold Corp. updated on its current drill program at its Las Minas project in Veracruz. To date 655 m have been drilled on five holes, with three holes testing El Dorado zone, another 261 m hole tested an electromagnetic anomaly, while the hole currently being drilled is also testing a 350 m extension of the same anomaly.

ON DEALS AND CORPORATE ISSUES

  • Telson Mining Corp. informed that as a result of suspending operations at Campo Morado in August 2019 under force majeur conditions, Telson has been without cash flows resulting in non-payment under the loan agreement with Nyrstar Holdings Ltd. This has resulted in Nyrstar issuing a notice of default and demand for payment. Telson’s outstanding debt under this loan agreement including principal and interest is approximately US$6 M. Telson expects to be able to recommence outstanding payments to Nyrstar while exploring other financing alternatives.
  • Prime Mining Corp. entered into contractual agreements for marketing, advertising, shareholder engagement and social media communications with Brisco Capital Partners Corp. for a monthly retainer for a minimum of a CDN$10 K and a maximum of CDN$50 K (Guadalupe de Los Reyes, Sinaloa).
  • Oceanus Resources Corp. announced that is now live on VRIFY, a platform being used by companies to communicate with investors using virtual tours of remote mining assets, 3D models and interactive presentations (El Tigre, Sonora).
  • Santacruz Silver Mining Ltd. and Peñoles, each by mean of a subsidiary, extended the Zimapan mine lease agreement from December 31,2019 to December 31, 2020. Santacruz must make monthly payments to Peñoles based on a 4% NSR, subject to a minimum US$45 K and a maximum of US$60 K per month. The extension provides more time for the negotiation of terms of a potential acquisition of the Zimapan mine in Hidalgo.
  • Almaden Minerals Ltd. was notified by SEMARNAT (Mexico’s environmental authority) that the permitting process for the Ixtaca project in Puebla has been suspended pending resolution of a mineral title lawsuit previously reported. “Under the Lawsuit, certain organisations have supported legal challenges against the Government of Mexico and the Mexican mineral title regime using the Company’s mineral claims as a basis for their challenges. The Lawsuit contends that the issuance of Almaden’s original mineral titles violated human rights and did not respect Mexico’s commitment to indigenous consultation under United Nations Instrument ILO 169…… o. In April, 2019, a Lower Court in Puebla State ruled that the Mexican mineral title system is unconstitutional and as a result these original mineral claims should be held exclusively for Almaden until such time as consultation can be completed. This Lower Court decision has now been appealed by the Mexican Congress, Senate, Secretary of Economy and Mining authorities, as well as Almaden as an affected party. The Lawsuit remains before the Courts”. SEMARNAT was informed on October 24 that the company completed the necessary steps to abandon its mineral claims in the area of the complaint in 2017.
  • Bacanora Lithium is using Veolia Water Technologies Division with its HPD evaporation and crystallisation technologies to validate Bacanora Lithium’s product purity requirements at the Sonor lithium project, while removing potassium and converting it into a sub-product. Veolia engineered and designed the production process that recovers lithium carbonate and sulphate of potash from clay deposits.

ON SOCIAL RESPONSIBILITY

  • Minas de Oro Nacional (Alamos Gold) reunited in Matarachi, Sahuaripa and Hermosillo (Sonora) all the 185 students currently receiving scholarships to study in Matarachi, Sahuaripa, Arivechi, Chihuahua, Cuahutémoc and San Luis Rio Colorado. The ceremony in Hermosillo was held with company and state executives, including the state governor, the Mining Director, the director of DIF, the director of the Sonora Mining Cluster, the director of the Miners Association of Sonora and the SEC sub-secretary of Basic Education.

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: Gneiss hosted quartz veinlet from a project in Oaxaca. Picture by Jorge Cirett.

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

 

barite crystals

By Miguel A Heredia

During the forty-three week of the year (October 21st to October 27th, 2019), at least 42 press releases were announced by companies working in Mexico, with eleven disclosing deals and corporate issues, ten announcing financial rounds, seven commenting on Mexican issues, six informing on exploration results, three communicating production results, three reporting on resources and developments of their projects, and one discussing issues on social responsibility.  ON MEXICO ISSUES, Napoleón Gómez Urrutia, a mining union leader and senator for the Morena party proposed to increase the taxes to mining concessions to levels of 20-30%.  Fernando Alanís, president of the Cámara Minera de México (CAMIMEX), reported that 244 Canadian companies stopped investing in Mexico. At the AIMMGM Mining convention in Acapulco, the CONAGO (Conferencia Nacional de Gobernadores) and the federal government were at disagreement on the use of the Mining Fund. Camimex expects the “Mesa de Minería” (Mining Forum) is installed before year’s end. Newmont-Goldcorp re-started up production at its Peñasquito mine in Zacatecas. ON EXPLORATION, In Baja California Norte, One World Lithium announced the continuation and progress of the phase 3 drilling program at its Salar del Diablo project.   In Sonora, Aloro mobilized crews to sample high grade Au veins on the northwest side of its Los Venados project, and Agnico Eagle provided an exploration update of its Santa Gertrudis project. In Chihuahua, Radius Gold and Pan American Silver commenced the phase 3 drilling program at its Amalia project. In Zacatecas, Galore reported the completion of 1,667.20m of core drilling at its Dos Santos project.  In Jalisco, GoGold reported drill results from six new holes from its Los Ricos project. ON MINING, Agnico Eagle, Fresnillo, and Excellon reported Q3, 2019 production and financial results from their Mexican operations. ON FINANCING, Galore closed a first tranche of a private placement for gross proceeds of CAD $187K and implemented a shares for services agreement on its drill contract (Dos Santos project, Zacatecas). One World Lithium reported that its previously announced non-brokered private placement (Sept 05, 2019), will be replaced by a non-brokered private placement for gross proceeds of $1M (Salar del Diablo project, Baja California Norte).  VVC closed a non-brokered private placement for gross proceeds of CAD $2M (Kaity project in Samalayuca, Chihuahua). Silver Viper closed a private placement financing to raise gross proceeds for $4M (La Virginia project, Sonora). Orla entered into a commitment letter for up to USD $125M project finance facility (Camino Rojo project, Zacatecas). Vista Gold received the third option payment from Prime Mining for the Guadalupe de Los Reyes property in Sinaloa. Newmont-Goldcorp declared a quarterly dividend of $0.14 per share of common stock (Peñasquito mine, Zacatecas). Gold Resource increased 100% its instituted annual dividend from $0.02 to $0.04 per common share (Arista mine, Oaxaca). ON RESOURCES AND DEVELOPMENT, Golden Minerals outlined progress at its Velardeña and Rodeo properties in Durango. Minera Peñoles informed that is to start operations at its Capela mine in Guerrero. Endeavour reported infill drill results from its Parral project in Chihuahua.  ON DEALS AND CORPORATE ISSUES, Alien Metals appointed Novum Securities Ltd as its joint corporate broker with immediate effect (San Celso project, Zacatecas). Defiance Silver appointed a couple of OreQuest consultants as technical advisors to work on its San Acacio project in Zacatecas. Impact granted stock options to directors, officers, and employees (Zacualpan mining district, State of Mexico).   Oroco announced special general meeting of its shareholders to be held on December 19, 2019 (Santo Tomas project, Sinaloa). Vangold announced changes on its board of Directors and appointed its corporate secretary (El Pinguino mine, Guanajuato). Tamino Minerals was invited to list on the Mexican Stock Exchange (El Volcan project, Sonora). Torex responded a recent letter to its shareholders and stakeholders (Limon-Guajes, Guerrero). Sonoro advanced discussions with China-based companies to develop and finance its Cerro Caliche project in Sonora. Magellan entered into an option agreement with Golden Minerals to acquire 100% interest in Santa Maria project in Chihuahua. Santacruz Silver appointed a new director to its Board (Veta Grande, Zacatecas). Ternium received from PROFEPA, the certification as a clean industry (Tecomán plant in Colima).  ON SOCIAL RESPONSIBILITY, In Aconchi, Sonora, the Orquesta La Caridad from Grupo Mexico offered a concert to 250 attendees by 110 children and young people, the first on its Rio Sonora tour. Doctor Vagón, the Health Train of Fundación Grupo México, arrived in San Pedro, Coahuila from October 23 to 26 to give medical attention to the residents of the municipality.

ON MEXICO ISSUES

  • Napoleón Gómez Urrutia, a mining union lider and senator by Morena proposed to increase the taxes to mining concessions to levels of 20 to 30%, sustaining that countries like Peru, Bolivia or Chile are at those levels. That declaration was done while he was defending the federal government intention to use the Mining Fund to other means that what it was imposed for: helping develop mining communities. The leader of the Morena senators is to present an integral initiative for the mining sector. Why don’t we raise the taxes to mining, to the rights on mineral exploitation, to the mining concessions taxes?, asked Gómez Urrutia. Ricardo Monreal, a presidential hopeful considered the proposal to be correct, and asked for its formalization.
  • Fernando Alanís, Camimex (Cámara Minera de México) president said that 244 Canadian companies stopped investing in Mexico. Camimex is fighting for the 100% deductibility of exploration expenses, as it is a strong deterrent on exploration investment, where the most risk of the industry is concentrated.
  • At the AIMMGM Mining convention in Acapulco, the CONAGO (Conferencia Nacional de Gobernadores) and the federal government were at disagreement on the use of the Mining Fund. While the governors fight for the said funds to remain on the states and municipalities, the federal government proposed that 85% of the resources are directed to the Secretaria de Educación Pública (SEP), by reforming the Ley Federal de Derechos (Federal Law on Duties) starting on 2020. The federal proposal allows full discretionally use of the where the funds are used, even in areas where no mining is conducted. In 2018 alone, $3,840 M pesos (about US$202 M) were accrued on the Mining Fund.
  • Camimex expects the “Mesa de Minería” (Mining Forum) is installed before year’s end, and can start to work with the federal government, so the mining sector is heard and doubts and misunderstandings can be cleared. Subjects to address include the social, the environment, regulation of the investment compromise, and the fiscal issues. Camimex stressed the mining in Mexico pays about 46 percent in taxes.
  • Newmont-Goldcorp, re-started up production at its Peñasquito mine in Zacatecas, following the lifting of the illegal blockade on October 8, 2019. “With the support of the State and Federal governments, including an ongoing police presence, the Company has commenced an approximately 10-dayprocess of bringing back the operation to full production”.

ON EXPLORATION

  • One World Lithium Inc., announced the continuation of the phase 3 drilling program at its Salar del Diablo project in Baja California Norte. Four boreholes are planned for a total of 2,400 meters (about 8,000 feet) of exploration drilling. The company reported that the first borehole reached a depth of 220m. Target depths of up to 600 meters are expected to be achieved.
  • Aloro Mining Corp., is to sample high-grade gold veins on the northwest of the Los Venados property in Sonora. In this area lies a 3.5 km vein system up to 400 m in width that has been partially mapped. Results from early sampling have results of up to 32 g/t Au and 49 g/t Ag.
  • Agnico Eagle Mines Limited, provided an update of the exploration program carried out at its Santa Gertrudis project in Sonora. Drilling at Santa Gertrudis has extended the Amelia deposit in the Trinidad zone to 800m strike length, with highlight intercepts of 6.4 g/t Au over 7m and 9.6 g/t Au over 6m.
  • Radius Gold Inc., and Pan American Silver Corp., commenced the phase 3 drilling program at its Amalia project in Chihuahua. Pan American is now operating the project and expects to drill a minimum 2,500m of core drilling.
  • Galore Resources Inc., reported the completion of 1.667.20m of core drilling at its Dos Santos project in Zacatecas. Drilling results are still pending to be released.
  • GoGold Resources Inc., reported results from six new diamond drill holes including four from the San Juan zone, the first step out hole testing the El Troce area, and one from the Main area at its Los Ricos project in Jalisco. At San Juan, hole LRGG-19-050 intersected 0.39 g/t Au and 76 g/t Ag (1.41 g/t AuEq) over 45.3m, including 1.01 g/t Au and 242 g/t Ag (4.23 g/t AuEq) over 6.2m,and hole LRGG-19-051 intersected 0.4 g/t Au and 86 g/t Ag (1.55 g/t AuEq) over 24m. At El Troce, hole LRGG-19-053 intersected 1.53 g/t Au and 164 g/t Ag (3.72 g/t AuEq) over 10.1m, including 5.22 g/t Au and 489 g/t Ag (11.75 g/t AuEq) over 2.8m. At the Main area, hole LRGG-19-055 intersected 0.58 g/t Au and 75 g/t Ag (1.59 g/t AuEq) over 14.4m.

ON MINING

  • Agnico Eagle Mines Limited, reported Q3, 2019 production and financial results from their Mexican operations. At Pinos Altos mine, Chihuahua, it processed 519K tonnes of 2.22 g/t Au to produce 34.8K Oz Au at a total cash cost of USD $745 per Oz Au produced. At Creston Mascota mine in Chihuahua, the company processed 284K tonnes of 0.78 g/t Au to produce 9,596 Oz Au at a total cash cost of USD $668 per Oz Au produced. At La India mine, Sonora, Agnico processed 1.1M tonnes of 0.77 g/t Au to produce 18.4K Oz Au at a total cash cost of USD $872 per Oz Au produced.
  • Fresnillo plc, presented Q3 2019 production results from their Mexican operations. Consolidated production results for the Q3, 2019 reached 13.3M Oz Ag (including Silverstream for 659K Oz Ag), 209.7K Oz Au, 34.9M Lb Pb, and 56.8M Lb Zn. At Fresnillo mine, Zacatecas, the company processed 648,646 tonnes of 183 g/t Ag, 0.99 g/t Au, 1.24% Pb, and 2.14% Zn, to produce 3.4M Oz Ag, 15.6K Oz Au, 15.8M Lb Pb, and 22.9M Lb Zn. At Saucito mine, Zacatecas, it processed 703K tonnes of 207 g/t Ag, 1.22 g/t Au, 0.84% Pb, and 1.38% Zn, to produce 4M Oz Ag, 21K Oz Au, 11M Lb Pb, and 14.9M Lb Zn. At Pyrites Plant, Fresnillo processed 38,572 tonnes of 314 g/t Ag and 2.44 g/t Au, to produce 285K Oz Ag and 954 Oz Au. At Cienega mine, Durango, it processed 335,493 tonnes of 1.78 g/t Au, 151 g/t Ag, 0.81% Pb, and 1.35% Zn, to produce 17.8K Oz Au, 1.4M Oz Ag, 4.1M Lb Pb, and 6.2M Lb Zn. At San Julian mine in Chihuahua-Durango border, the company processed 321,798 tonnes of 1.39 g/t Au and 108 g/t Ag, to produce 13,711 Oz Au and 1M Oz Ag from veins, and 559,693 tonnes of 0.07 g/t Au, 130 g/t Ag, 0.41% Pb, and 1.35% Zn, to produce 523 Oz Au, 2M Oz Ag, 4M Lb Pb, and 12.8M LB Zn from the disseminated ore body. At the Herradura mine, Sonora, Fresnillo processed 5,591,746 tonnes of 0.71 g/t Au and 3 g/t Ag, to produce 102,439 Oz Au and 412K Oz Ag. At the Noche Buena mine, Sonora, it processed 3,215,167 tonnes for a total volume hauled of 11,447,273 tonnes with grades of 0.58 g/t Au and 0.25 g/t Ag to produce 37,570 Oz Au and 14K Oz Ag.
  • Excellon Resources Inc., announced Q3, 2019 production results from its Platosas mine, Durango. Excellon milled and processed 17,235 tonnes of 512 g/t Ag, 4.4% Pb, and 6% Zn to produce 257.5K Oz Ag, 1.3M Lb Pb, and 1.65M Lb Zn, with metallurgical recoveries of 87.2%, 77.7%, and 76.5% respectively.

ON FINANCING

  • Galore Resources Inc., closed a first tranche of a private placement for gross proceeds of CAD $187K.The company also implemented a cash + shares for services agreement with COMEFIN S DE RL DE CV, to conduct the diamond core drilling programs at Galore’s 100% owned El Alamo and Los Gemelos projects (Dos Santo project, Zacatecas).
  • One World Lithium Inc., reported that its previously announced non-brokered private placement (Sept 05, 2019), will be replaced by a non-brokered private placement of unsecured convertible notes for gross proceeds of $1M (Salar del Diablo project, Baja California Norte).
  • VVC Exploration Corporation, closed a non-brokered private placement for gross proceeds of CAD $2M. The proceeds of the Financing will be used for exploration and development on the Kaity Property in Mexico, including diamond drilling, land use permits and associated costs, metallurgical bench testing of the copper mineralization, and investigation, evaluation and implementation of the Gloria Pilot Mining Project (Kaity project in Samalayuca, Chihuahua).
  • Silver Viper Minerals Corp., closed a private placement financing to raise gross proceeds for $4M. Net proceeds will be used to continue exploration and development of its La Virginia Au-Ag in Sonora and for general corporate and working capital purposes.
  • Orla Mining Ltd., entered into a commitment letter with Trinity Capital Partners Corporation, with respect to a secured project finance facility of USD $125M for the development of its Camino Rojo project in Zacatecas.
  • Vista GoldCorp., received the third $1.5M option payment from Prime Mining Corporation for the Guadalupe de Los Reyes project in Sinaloa.
  • Newmont-Goldcorp, declared a quarterly dividend of $0.14 per share of common stock, payable on December 27, 2019 to holders of record at the close of business on December 5, 2019.
  • Gold Resource Corporation, announced it has increased 100% its instituted annual dividend from $0.02 to $0.04 per common share. This increases the monthly dividend to one-third of a cent per common share for October 2019 payable on November 25, 2019 to shareholders of record as of November 12, 2019 (Arista mine, Oaxaca).

ON RESOURCES AND DEVELOPMENT

  • Golden Minerals Co. informed it is working on a new PEA on its Velardeña properties in Durango, to reflect better metal prices and new metallurgical processes. At Rodeo, also in Durango, Golden plans to initiate a small drilling program to provide better definition on its 46 K Oz Au resource. At Yoquivo, in Chihuahua, Golden has the permits to initiate a drill program to test several epithermal veins early in 2020.
  • Minera Peñoles informed that is to start operations at its Capela mine in Guerrero. The Capela mine is a US$340 M investment that is to generate 1,000 direct jobs and at least 1,400 indirect ones. Mining generates more than 10 thousand direct jobs and 50 thousand indirect jobs, making it the second most relevant economic activity in the state.
  • Endeavour Silver Corp., reported infill drill results from 10 underground holes collared on the Veta Colorada vein at its Parral project in Chihuahua. Every hole intersected strong Ag mineralization below the lowest mine level. Recent drilling highlights include 308 g/t Ag over 11.6 m true width n hole VCU-16. “Several drill holes intersected two mineralized zones, the Veta Colorada and the HW Veta Colorada in the hanging wall, with a total true width of mineralization up to 16.5 m in hole VCU-17, with 226 g/t Ag over 7.6m true width, including 593 g/t Ag over 0.5m true width, and 254 g/t Ag over 8.9m true width, including 1,355 g/t Ag over 0.5m true width”.

ON DEALS AND CORPORATE ISSUES

  • Alien Metals Ltd., appointed Novum Securities Ltd as its joint corporate broker with immediate effect (San Celso project, Zacatecas).
  • Defiance Silver Corp., appointed a couple of OreQuest consultants as technical advisors to execute the ongoing exploration program at its san Acacio project in Zacatecas.
  • Impact Silver Corp., granted stock options to directors, officers, and employees for the purchase of 2M shares in its capital at the above market price of $0.36 per share (Zacualpan mining district, State of Mexico).
  • Oroco Resources Corp., announced that its special general meeting for shareholders will be held on December 19, 2019 to consider and vote on a resolution to approve the Company’s option to acquire Altamura Copper Corp.(Santo Tomas project, Sinaloa).
  • Vangold Mining Gold, informed about changes on its Board of Directors and expanded the role in the company of its CFO to become in its corporate secretary (El Pinguico mine, Guanajuato).
  • Tamino Minerals, has been invited to list on the Mexican Stock Exchange. If Tamino can achieve the listing, it may have a solution to combat its shortage of investment capital and advance their exploration projects (El Volcan, Sonora).
  • Torex Gold Resources Inc, responded a recent letter to its shareholders and stakeholders to confirm its long-term strategy to develop a sustainable, multi-asset, mining business by executing operationally to generate strong free cash flow from its Limon-Guajes mine in Guerrero, de-risking and bringing Media Luna project, Guerrero into production, and delivering the full potential of its innovative Muckahi Mining System to the benefit of all Torex shareholders.
  • Sonoro Metals Corp., continued advancing its discussions with China-based engineering, procurement and construction companies regarding plans to develop and finance a proposed heap leach pilot operation for its Cerro Caliche project in Sonora.
  • Magellan Gold Corp., entered into an option agreement with Golden Minerals Company to acquire 100% interest in the Santa Maria project in Chihuahua by making a cash payment of USD $1M to Golden at closing, and pay Golden a 6.5% NSR based royalty from all production until a total of USD $3M has been paid under the royalty agreement, the royalty is then reduced to a 3.0% NSR based royalty for the balance of the property life.
  • Santacruz Silver Mining Ltd., appointed a new director to its Board (Veta Grande, Zacatecas).
  • Ternium, received from PROFEPA, a certification as a clean industry for the 6th consecutive year, established by the Mexican Standard, NMX-AA-162-SCFI 2012, Regulation of the General Law of Ecological Balance and the Protection of the Environment in matters of Self-Regulation and Environmental Audits. The certification was granted to the Alzada pelletizing plant and Tecomán station, both located in Colima.

ON SOCIAL RESPONSIBILITY

  • In Aconchi, Sonora, the Orquesta La Caridad from Grupo Mexico offered a concert to 250 attendees by 110 children and young people from Nacozari, the first on its Rio Sonora tour.
  • Doctor Vagón, the Health Train of Fundación Grupo México, arrived in San Pedro, Coahuila from October 23 to 26 to give medical attention to the residents of the municipality. The Health Train will offer general consultations, dermatology, pediatrics, dentistry, chiropractic and physical rehabilitation, Comprehensive service for women (mastography, colposcopy), comprehensive diabetic patient clinic, comprehensive service for women, nutrition, psychology, optometry, family planning, geriatrics, audiometry, laboratory tests and cabinet studies, all for free.

 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, barite crystals in a rhyolite tuff from a prospect in Chihuahua, Mexico.  Photo by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the First Week of October, 2019

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The Mining and Exploration News in Mexico: Highlights on the First Week of October, 2019

By Jorge Cirett

During the 40th week of the year (September 30th to October 6th, 2019), at least 20 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, Gold production declined 2.8% in 2018. On the illegal blockade at the Peñasquito mine in Zacatecas, the president of Mexico asked for both parties to solve their differences (not pronouncing himself on the illegality of the blockade). Frisco and Cemex suffered big losses at the Mexican stock exchange. ON EXPLORATION, in Sonora, Magna Gold signed a LOI on the San Judas project in Sonora; Colibri Resource is to complete mapping and sampling on its Evelyn project. In Sinaloa, Kootenay Silver signed a surface access agreement on the Copalito project. In Zacatecas, Alien Metals is eyeing a drill program on its San Celso project.  ON MINING, Alien Metals presented financial results for the first semester 2019. Torex Gold produced 138,100 Oz Au at El Limon-Guajes mine in Guerrero during the Q3 2019. ON FINANCING, Southern Silver, Millrock Resources and Alien Metals granted 3.25 M, 1.88 M and 7 M incentive options respectively to officers, directors, employees and consultants. Fortuna Silver closed a bought deal financing for US$40 M. Azure Minerals raised $4 M. ON RESOURCES AND DEVELOPMENT, GoGold resources released results for one more hole at its Los Ricos project in Jalisco. Premier Gold released results on drilling at the Lupita extension on its Mercedes mine in Sonora. Goldplay disclosed channel surface sample results at its San Marcial property in Sinaloa. Silver Bull provided results from eleven more drill holes at the Sierra Mojada project in Coahuila (halted by an illegal blockade). ON DEALS AND CORPORATE ISSUES, Magna Gold signed a LOI on the San Judas project in Sonora. Silver Bull halted exploration at its Sierra Mojada project in Coahuila, due to an illegal blockade by a mining cooperative demanding a royalty payment on a property that is not in production. Fortuna Silver terminated the option on Prospero Silver’s Pachuca SE project in Hidalgo. Millrock and Riverside entered into a definitive agreement on the La Union, Los Cuarentas, El Pima, El Valle, and Llano del Nogal projects in Sonora. Santacruz Silver approved the acquisition of the remaining 50% of PCG Mining S.A. de C.V., parent company of Carrizal Mining, S.A. de C.V.. ON SOCIAL RESPONSIBILITY. No relevant news.

ON MEXICO ISSUES

  • Gold production in Mexico declined by 2.8% in July 2019. This is the 28th consecutive month of production contractions, the longest since 1981, according to INEGI (Instituto Nacional de Estadística y Geografía). In 2016 the production declined by 5.2%, in 2017 another 13.6% and a further 9.7% in 2018. Mineral products with annual increments include zinc at 10.7%, iron pellets with 2.9%, lead with 2.5%, sulphur with 1.6% and coal with 0.8%.
  • On Peñasquito’s illegal blockade, Mexico’s president, Andres Manuel Lopez Obrador, asked both parties two solve their differences in the conflict that has now more than two weeks (he did not mention the blockade being illegal). Newmont Goldcorp has offered more than US$25 M in investments, amount that the blockaders reckon as lacking. The Peñasquito mine produced 272,000 Oz Au last year, and had re-started production in mid-June after a first illegal blockade by truckers wanting to get a contract and locals accusing the company of water availability issues.
  • To the 3rd of October Frisco and Cemex have suffered big losses in the Mexican stock exchange (S&P/BMV IPC), 13.76% and 6.24% respectively, under the current commercial instability between USA and the European Union. Frisco is one of the biggest mining companies in Mexico, with operations in Baja California, Sonora, Chihuahua, Zacatecas and Aguascalientes (although Frisco is also known for its scant releases on reserves and resources). Cemex is the biggest Mexican cement producer, with operations internationally.

ON EXPLORATION

  • Magna Gold Corp. signed a LOI to explore the San Judas project in Sonora. The two mineral concessions cover 2806 ha underlain by a Precambrian basement composed of granite, gneiss, pegmatites and schist. “The entire sequence is affected by multiple deformations and the emplacement of intrusions such as leucocratic granites and andesitic dikes”. Gold mineralization is associated with quartz-breccia veins, quartz veins and “quartz stockworks emplaced along a series of parallel, foliated, low-angle shear zones within the igneous-metamorphic sequence”. Assays in an historical rock chip sample database have values of up to 230 gpt gold.
  • Colibri Resource Corp. contracted Auro Metallum Geology Consulting Services of Hermosillo, in Sonora, to complete a geological mapping study of its 506 ha Evelyn Gold Project near Caborca in Sonora. Recent sampling has returned up to 4.8 gpt Au from abundant quartz in sub-crop in a new zone identified by soil sampling.
  • Alien Metals Ltd. updated on the exploration of its San Celso and Los Campos projects in Zacatecas. At San Celso a next step of work will examine a drill program funded by a third party to test the strike extension of the main veins, and the depth extension below the existing workings.
  • Kootenay Silver Inc. signed a surface access agreement with the local ejido at the Copalito project in Sinaloa. Said agreement allows the company to mapping, sampling, geophysics, trenching and drilling. The 3,700 ha project covers a low sulfidation epithermal system with numerous veins, traced over up to 2 km of length, and 0.5 to 15 meters in width. Sampling has returned assays of up to 8.2 gpt Au, 532 gpt Ag, 17.4% Zn, 9.9% Pb and 5.1% Cu.

ON MINING

  • Alien Metals Ltd. presented its financial results for the first semester of 2019. As of the end of the period the company had total assets of US$1.2 M, of which US$0.4 M was cash, and current total liabilities for US$0.1 M (Donovan 2, Zacatecas).
  • Torex Gold Resources Inc. announced gold production of 138,100 ounces of gold during Q3 2019, on track to meet it 2019 production guidance of 430,000 ounces. During the period plant throughput averaged 12,370 tonnes per day (tpd), underground mining 1,110 tpd, open pit mining 14,270 tpd (El Limon-Guajes, Guerrero).

ON FINANCING

  • Southern Silver Exploration Corp. granted 3.25 M incentive stock options to directors, officers and consultants, exercisable at $0.27 per common share for a period of five years. The rolling incentive stock option plan was also approved, pursuant to which a maximum of 10% of the issued shares will be reserved for issuance under the plan. (Cerro Las Minitas, Durango).
  • Millrock Resources Inc. approved a grant of stock options to employees, officers, directors and advisers to the company, granting a total of 1.88 M stock options exercisable at $0.09 for five years. The company is also to settle debt owed for deferred cash compensation to certain officers, directors and employees by issuing 819 K Millrock shares (Batamote, Sonora).
  • Alien Metals Ltd. granted 7 M options to its technical director, Brill Brodie. All shares are exercisable from 1 October 2019, of which 3 M can be exercised at 0.22 pence, 3 M at 0.30 pence and 4 M at 0.45 pence (San Celso, Zacatecas).
  • Fortuna Silver Mines Inc. closed the previously announced bought deal offering of senior subordinated unsecured convertible debentures for an aggregate principal amount of US$40 M. “The Debentures mature on October 31, 2024 and will bear interest at a rate of 4.65% per annum, payable semi-annually in arrears on the last business day of April and October in each year, commencing on April 30, 2020. The Debentures will be convertible at the holder’s option into common shares in the capital of the Company” at a conversion price of US$5.00 per share (San José, Oaxaca).
  • Azure Minerals Ltd. raised $4 M (before costs) through a placement to institutional and sophisticated investors “to relaunch an aggressive exploration push on the Alacrán silver and gold projects” in Sonora. Azure is to undertake drilling to increase mineral resources at the Loma Bonita Au-Ag deposit, today standing at 150 K Oz Au, 4.8 M Oz Ag in 5.4 M tonnes @ 0.9 gpt Au, 28 gpt Ag.

ON RESOURCES AND DEVELOPMENT

  • GoGold Resources Inc. released results from one more hole completed on the San Juan area of its Los Ricos project in Jalisco. The hole returned 21.0 m @ 1.38 gpt Au, 146 gpt Ag (3.33 gpt AuEq), including 5.0 m @ 4.36 gpt Au, 436 gpt Ag (10.2 gpt AuEq). The San Juan area is located 400 m NW from the Los Ricos Main area.
  • Premier Gold Mines Inc. released results from its drilling program focused on delineating new mineral resources in the Lupita Extension at its Mercedes mine in Sonora. Highlighted results comprise 3.6 m @ 7.18 gpt Au, 54 gpt Ag; 1.8 m @ 24.24 gpt Au, 179 gpt Ag; 3.4 m @ 8.86 gpt Au, 67 gpt Ag; 3.1 m @ 13.65 gpt Au, 80 gpt Ag. The Neo target is 400 m north of San Martin is a possible extension of the Diluvio system, with one of three drill holes returning 3.1 m @ 13.65 gpt Au, 80 gpt Ag.
  • Goldplay Exploration Ltd. disclosed results from channel sampling on the Faisanes target of the San Marcial project in Sinaloa. The samples were cut by saw along the access road walls and road surface, returning 10 m @ 98 gpt Ag, 0.06 gpt Au) 0.6 m @ 587 gpt Ag, nil Au; 1.0 m @ 214 gpt Ag, nil Au; 1.1 m @ 42 gpt Ag, nil Au; 1.0 m @ 41 gpt Ag, 0.26 gpt Au.
  • Silver Bull Resources Inc. provided results from eleven more drill holes from its Sierra Mojada project in Coahuila. Highlights from the holes comprise: 17.1 m of oxide mineralization @ 120 gpt Ag, 0.43% Cu (including 1.35 m @ 539 gpt Ag, 0.27% Cu and 2.25 m @ 198 gpt Ag, 1.66% Cu and 0.55 m @ 403 gpt Ag, 1.6% Cu); 5.2 m of sulfide mineralization @ 149 gpt Ag, 0.87% Cu, 4.67% Zn. Due to an illegal blockade by a cooperative of miners who hold a royalty on two claims, the drill program has been paused.

ON DEALS AND CORPORATE ISSUES

  • Magna Gold Corp. entered into a binding letter of intent (LOI) with the private owners of the two mining concessions forming the 2,806 ha San Judas project in Sonora. The deal involves payments of US$50 K on signature of the definitive agreement, US$50 K on the first year, US$100 K on the second year, US$150 K on the third year, US$300 K on the fourth year and US$1.,03 M on the fifth year, all figures plus VAT.
  • Silver Bull Resources Inc. halted all work on the Sierra Mojada project in Coahuila due to a blockade by a cooperative of local miners called Sociedad Cooperativa de Exploración Minera Mineros Norteños, S.C.L.. The company has an agreement with the said cooperative on two mineral concessions in the eastern part of the Sierra Mojada project, under which they have the right of a 2% production royalty. Since 2014 the cooperative filed a suit fighting for payment of the royalty, notwithstanding the lack of production from the property. The cooperative also demands payments of wages for individuals that have not worked for the company, neither received employment commitments from Silver Bull. The cooperative has now illegally blockaded access to the project in an attempt to force a settlement before the final ruling. “Silver Bull is working with authorities to resolve the situation in a safe, fair, and timely manner”.
  • Fortuna Silver Mines Inc. announced the termination of the Pachuca SE property option agreement signed previously with Prospero Silver Corp. (San José, Oaxaca).
  • Millrock Resources Inc. entered definitive agreements to sell the La Union, Los Cuarentas, El Pima, El Valle, and Llano del Nogal claim blocks to Riverside Resources Inc., as well a copy of its exploration database and exploration vehicles also to Riverside. Consideration paid to Millrock is $35 K cash and 150 K Riverside shares, and a 0.5% NSR on the El Pima, El Valle and Santa Rosalia (conditional on this one) claims. “Millrock has retained the El Batamote copper porphyry project and this will be the sole focus of Millrock’s exploration effort in Mexico going forward” (Batamote, Sonora).
  • Santacruz Silver Mining Ltd. shareholders approved in its last annual general meeting held in October 1, 2019, the re-election of directors, the auditor of the company and the approval of the existing 10% rolling stock option plan. Also approved was the acquisition of the remaining 50% of the outstanding shares of PCG Mining S.A. de C.V. from a non-arm’s length party in consideration for the issue of 30 M common shares of the company. Upon completion of the transaction the company will own 100% of PCG, which is the parent holding company of Carrizal Mining, S.A. de C.V..

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 image below: Sheeted quartz veining in metamorphic rocks from an orogenic gold project in Oaxaca. Picture by Jorge Cirett.

IMG_2609 - copia

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

Quartz vein displaying lattice  bladed texture

By Miguel A Heredia

During the thirty-nine week of the year (September 23th to September 29th, 2019), at least 21 press releases were announced by companies working in Mexico, with seven informing on exploration results, six disclosing deals and corporate issues, three announcing financial rounds, two communicating production results, one reporting on resources and development of their projects, one commenting on Mexican issues, and one notifying on social responsibility.  ON MEXICO ISSUES, Los Gatos mine was inaugurated in San José del Sitio, Chihuahua with an investment of USD $366M.  ON EXPLORATION, In Baja California Norte, One World Lithium announced the continuation of the phase 3 drilling program at its Salar del Diablo project. In Sonora, Ridgestone released historical assays results from its Rebeico project. In Chihuahua, Kootenay reported drilling results from its Columba project.  In Durango, Canasil reported high grade sampling results from its Nora property. In Jalisco, GoGold released drill results from its Los Ricos project. In Veracruz, Mexican Gold announced 3,000m of drilling and its exploration plan for the remainder 2019 on its Las Minas project, and Azucar Minerals released drilling results from its El Cobre project. ON MINING, Mexus Gold provided an update on its Santa Elena mine in Sonora. Azure also provided an update on the first phase small-scale mining program at its Oposura project in Sonora. ON FINANCING, Aztec Minerals applied to the TSX to extend the term of 2,551,250 common share purchase warrants (Cervantes project, Sonora). Silver Viper closed a private placement for gross proceeds of $4M (La Virginia project, Sonora). Gold Resource declared its monthly dividend for September 2019 to shareholders (Arista mine, Oaxaca).  ON RESOURCES AND DEVELOPMENT, Prime informed that the company completed a formal visit to its Los Reyes property in Sinaloa, to attend meetings with local stakeholders, to secure surface access and begin site preparation, and to initiate exploration and engineering work for the planned production phase. ON DEALS AND CORPORATE ISSUES, Advance Gold announced that a geophysical adviser was added to its exploration team (Tabasquena project, Zacatecas). Colibri Resources entered into a property option agreement with Tocvan Ventures Corp., on its Pilar property in Sonora. Consolidated Zinc completed the acquisition of a 100% interest of the Plomosas mine in Chihuahua. Vizsla entered into a definitive share purchase agreement to acquire an option on the Panuco-Copala mining camp in Sinaloa. Ridgestone entered in an agreement to acquire a 100% interest in 10 mining concessions adjacent to its Rebeico project in Sonora. ON SOCIAL RESPONSIBILITY, Fortuna Silver, through its subsidiary Minera Cuzcatlán, has invested MXP $177.2M in social programs in Oaxaca, Mexico.

 ON MEXICO ISSUES

  • Los Gatos mine was inaugurated in San José del Sitio, Chihuahua. The governor of Chihuahua State, Javier Corral, participated in the inauguration of the Los Gatos mines, located in San Jose del Sitio, Chihuahua. The mine was built with an investment of USD$ 366M among the Japanese company Dowa Mining and the American Sunshine Silver Mining company, for an estimated daily production of 2,500 tons of ore, which will be processed in the same plant with state-of-the-art technology, to obtain concentrates of Ag, Pb, and Zn. Governor Javier Corral celebrated the alliance of Japanese and American capital that occupied 1,800 people in construction and will give permanent employment to another 510 on its operation.

ON EXPLORATION

  • One World Lithium, announced the continuation of the phase 3 drilling program at its Salar del Diablo project in Baja California Norte. The phase three will consists of 3 holes adjacent to previously partly drilled holes 1, 9, and 11, and 1 hole located 50km to the south, for a total of 2,400m. Each hole has planned depths of 600m. Each hole will be drilled with a mud rotary rig that will set casing to 200 meters and then core drilled to the planned total depth of 600 meters. Objectives of the drilling program are “to determine the presence of aquifers that may contain concentrations of lithium in brines at depth; to collect representative, depth-specific groundwater samples for chemical analysis of major elements, including Li; to obtain drill core samples for analysis for drainable porosity that will assist in resource estimations; and to use borehole lithologic descriptions to identify hydrogeologic units and the stratigraphy of the basin; to help calibrate existing and future geophysical surveys; and to create a hydrogeologic model to develop a potential future Li resource”.
  • Ridgestone Mining Inc., released historical assays results from its Rebeico project in Sonora. These assays are from rock chip samples obtained by the Servicio Geológico Mexicano (SGM) at El Cobre, Tres Hermanos, Amargosa I and II, La Amargosita, and Campo Seco old workings. At El Cobre, two samples taken on the vein reported 0.8 g/t Au, 39 g/t Ag, 1.67% Cu, and 0.12% Mo over 1.18m, and 0.7 g/t Au, 50 g/t Ag, 0.51% Cu, and 0.18% Mo over 1.12m. In addition, two dump samples returned 0.5 g/t Au, 102 g/t Ag, 2.41% Cu, and 0.30% Mo, and 0.35 g/t Au, 38 g/t Ag, 2.07% Cu, and 1.22% Mo. At Tres Hermanos, highlights include 14.6 g/t Au and 23 g/t Ag over 1.30m; 8.13 g/t Au and 17 g/t Ag over 1.20m; 3.4 g/t Au, 23 g/t Ag, and 0.14% Cu over 1.90m; and 1.4 g/t Au, 137 g/t Ag, and 2.72% Cu over 1.0m. At La Amargosa I and II, 10 g/t Au and 3.48% Cu over 0.7m; 5.86 g/t Au and 1.85% Cu over 0.68m; and 2.66 g/t Au and 0.55% Cu over 0.71m. At La Amargosita, 17 g/t Au, 73 g/t Ag, and 0.45% Cu over 1.30m and one dump sample with 0.1 g/t Au, 777 g/t Ag, and 1.56% Cu. At Campo Seco, 0.1 g/t Au, 18 g/t Ag and 7.49% Cu over 0.55m.
  • Kootenay Silver Inc., reported drilling results from three holes drilled on the F Vein and five holes drilled on the I Vein at its Columba project in Chihuahua. Significant drill intersections were encountered in hole CDH-19-011 with 133 g/t Ag, 0.04% Pb, and 0.15% Zn over 11.0m, including 245 g/t Ag, 0.13 g/t Au, 0.1% Pb, and 0.3% Zn over 5.0m, and including 648 g/t Ag, 0.63 g/t Au, 0.2% Pb, and 0.6% Zn over 1.0m, on the F Vein, and 228 g/t Ag, 0.1% Pb, and 0.6% Zn over 1.2m and 102 g/t Ag, and 0.1% Zn over 1.68m on the foot wall vein; in hole CDH-19-012 with 184 g/t Ag, 0.2 g/t Au, 0.1% Pb, and 0.4% Zn over 11.0m, including 476 g/t Ag, 0.66 g/t Au, 0.3% Pb, and 1% Zn over 3.15m, including 476 g/t Ag, 0.66 g/t Au, 0.3% Pb, and 1% Zn over 3.15m, and including 755 g/t Ag, 1.16 g/t Au, 0.5% Pb, and 1.7% Zn over 1.75m on the F Vein, and three intersections on the hanging wall of 113 g/t Ag, 0.1% Pb, and 0.1% Zn over 1.35m, 699 g/t Ag, 0.4% Pb, and 0.8% Zn over 2.1m, and 113 g/t Ag, 0.1% Pb, and 0.1% Zn over 0.6m; in hole CDH-19-013 with 273 g/t Ag, 0.1% Pb, and 0.2% Zn over 4.15m on I Vein, including 697 g/t Ag, 0.15% Pb, and 0.3% Zn over 0.65m, and 328 g/t Ag, 0.1% Pb, and 0.2% Zn over 2.65m; in hole  CDH-19-014 with 261 g/t Ag, 0.3% Pb, and 0.6% Zn over 5.01m on the I Vein, and 894 g/t Ag, and 0.4% Zn over 0.42m on the hanging wall; in hole CDH-19-015 with 1,005 g/t Ag, 0.4% Pb, and 0.7% Zn over 0.3m on the I Vein; and in hole CDH-29-016 with 357 g/t Ag on the I Vein. “Drilling continues at the property with a total of 24 holes completed to date and the program being expanded from 3000 meters to approximately 4500 meters. It is anticipated that a total of 35 to 40 holes will be completed by early November with assay results continuing into December”.
  • Canasil Resources Inc., reported high grade results from 21 surface samples taken along the Candy vein, 31 samples collected from adjacent country rocks, and 12 dump samples at its Nora project in Durango. The Candy vein, an epithermal Au-Ag target, has not been previously drilled. There has been limited, historical mining of the Candy vein, and small mineralized waste dumps are present. Average of the 21 samples collected along the Candy vein is 1.69 g/t Au, 140 g/t Ag, 0.4% Cu, 1.6% Pb, and 0.6% Zn over 0.68m, with the highest Au value of 12.55 g/t Au, 12 g/t Ag, 1% Cu, 2.7% Pb, and 0.7% Zn over 0.40m, and the highest Ag value of 605 g/t Ag, 3.72 g/t Au, 0.97% Cu, 1.2% Pb, and 0.4% Zn over 1.0m. The average grade of the 12 dump samples is 1.40 g/t Au, 86 g/t Ag, 1.1% Cu, 3.4% Pb, and 1.6% Zn. These results will be interpreted to identify possible locations for subsequent drilling.
  • GoGold Resources Inc., released drilling results of four new holes drilled at Los Ricos Main Area and three new holes drilled at San Juan Area from its Los Ricos project in Jalisco. Significant drill intersections at Los Ricos Main Area were encountered in hole LRGG-19-038 with 0.72 g/t Au and 165 g/t Ag (2.92 g/t AuEq) over 21.2m, including 1.33 g/t Au and 302 g/t Ag (5.36 g/t AuEq); in hole LRGG-19-040 with 0.4 g/t Au and 115 g/t Ag (1.93 g/t AuEq) over 17.5m, including 0.89 g/t Au and 281 g/t Ag (4.64 g/t AuEq) over 4.5m; in hole LRRGG-19-041 with 1.14 g/t Au and 115 g/t Ag (2.68 g/t AuEq) over 23.3 m, including 4.6 g/t Au and 398 g/t Ag (9.91 g/t AuEq) over 5.5m; and in hole LRGG-19-042 with 0.47 g/t Au and 69 g/t Ag (1.40 g/t AuEq) over 29.2m, including 1.65 g/t Au and 224 g/t Ag (4.63 g/t AuEq) over 6.7m. At San Juan Area, the most significant drill intersections were encountered in hole LRGG-19-045 with 0.59 g/t Au and 34 g/t Ag (1.04 g/t AuEq) over 20m, including 2.92 g/t Au and 91 g/t Ag (4.123 g/t AuEq) over 3.5m; and in hole LRGG-19-046 with 0.36 g/t Au and 62 g/t Ag (1.19 g/t AuEq) over 36m, including 1.3 g/t Au and 220 g/t Ag (4.24 g/t AuEq) over 5.5m.
  • Mexican Gold Corp., announced an aggressive exploration plan for the remainder of 2019 at its Las Minas project in Veracruz, including a drill program of 3,000m. The company plans to drill test the Pueblo Nuevo, Cinco Señores TEM anomaly, Las Minillas, and El Dorado targets, and test the conceptual targets of Sub-Sill and the Mancuerna Dike Swarm for potential skarn mineralization.
  • Azucar Minerals Ltd., reported results from its ongoing drilling program at its El Cobre project in Veracruz at Norte, Villa Rica, Porvenir and Suegro targets. The most significant intervals were encountered at the Norte Target, where the hole EC-19-077 intersected 0.26 g/t Au and 0.11% Cu over 43.50m, including 0.53 g/t Au and 0.21% Cu and the hole EC-19-082 intersected 0.25 g/t Au and 0.12% Cu over 237.30m, including 0.63 g/t Au and 0.27% Cu over 44.45m, and another interval of 1.01 g/t Au and 0.33% Cu over 12.75m. At El Porvenir target, hole EC-19-078 intersected 82 g/t Au and 0.02% Cu over 12m, including 20.6 g/t Au and 0.01% Cu over 1.0m.

ON MINING

  • Mexus Gold US, provided an update on its Santa Elena mine in Sonora. The compnay informed that all systems are working properly but the Merrill Crow Au recovery plant currently in use is running at 30 gpm and producing 3Oz Au per day. Mexus is moving a new plant to Santa Elena which will have the capacity to run up to 500 gpm. This new equipment is expected to be operational in October, which allows the company to reach its long term production goal.
  • Azure Minerals Limited provided an update on the first phase small-scale mining program at its Oposura project in Sonora. Azure extracted and stockpiled an estimate of 6,100 tons of 13.4% Zn and 10.7% Pb from open pit, including 2,100 tonnes of 24% Zn and 18.3% Pb. Tonnages and grades exceed significantly the mineral resource estimate for this part of the deposit. Ore processing will start in the December quarter and will continue for 2-3 months. “Azure will produce separate Zn and Pb-Ag concentrates and expects to sell them on the spot market to locally-based metals traders or smelters, several of which have expressed strong interest in these products”.

ON FINANCING

  • Aztec Minerals Corp., applied to TSX to extend the term of an aggregate of 2,551,250 common share purchase warrants by one year from October 21, 2019 to October 21, 2020. “Each warrant entitles the holder to acquire one common share in the capital of the company at an exercise price of $0.25 per common share until the current expiry date of October 21, 2019. An aggregate of 23,750 warrants have been exercised to date and 550K warrants are held, directly or indirectly, by insiders of the company. The extension of the term of the warrants for an additional year is subject to the acceptance of TSX” (Cervantes project, Sonora).
  • Silver Viper Minerals Corp., closed a private placement for gross proceeds of $4M. Net proceeds will be used to continue exploration and development of its la Virginia project in Sonora, and for general corporate and working capital purposes.
  • Gold Resource Corporation, declared its monthly dividend of 1/6 of a cent per common share for September 2019, payable in October 23, 2019 to their shareholders (Arista mine, Oaxaca).

ON RESOURCES AND DEVELOPMENT

  • Prime Mining Corp., informed that the company completed a formal visit to its Los Reyes property in Sinaloa, to attend meetings with local stakeholders, to secure surface access and begin site preparation and to initiate exploration and engineering work for the planned production phase. The company has initiated a 5,000m trenching and surface sampling program on mineralized structures to provide valuable assay data to be used in conjunction with down drill data to update resource estimation. “The current trenching program will provide greater confidence in the conversion of these blocks to indicated resources for the upcoming resource estimate”.

ON DEALS AND CORPORATE ISSUES

  • Advance Gold Corp., announced that a geophysical adviser with over 40 years of international mining exploration experience was added to its exploration team (Tabasquena project, Zacatecas).
  • Colibri Resources Corporation, entered into a property option agreement with Tocvan Venture Corp., on its 100% owned Pilar project in Sonora. Tocvan has been granted a 60 days exclusivity period to complete a due diligence by paying Colibri $25K. If the due diligence is positive and Tocvan decide to continue the option agreement, it will have the option to earn 51% of the property over a 5 years period by issuing 2M common shares, paying CAD $100K to Colibri, 60 days after signing the final agreement, and performing CAD $250K of exploration expenditures at Pilar property during the first year. On year 2, Tocvan will pay CAD $ 50K to Colibri and will perform CAD $350K of exploration expenditures. On year 3, Tocvan will pay CAD $75K and issue 1M common shares to Colibri, and perform CAD $400K of exploration expenditures. On year 4, Tocvan will pay CAD $75K and issue 1M common shares to Colibri, and perform CAD $500K of exploration expenditures. On year 5, Tocvan will pay CAD $75K and issue 1M common shares to Colibri, and perform CAD $500k of exploration expenditures. Upon completion of these terms Tocvan will be granted a 6 month option to purchase the remaining 49% of Pilar in exchange for CAD $2M and a 2% NSR on the project, of which 1% could be sold by Colibri for a price of CAD $1M. Tocvan will operate the project during the option period.
  • Consolidated Zinc Limited, completed the acquisition of a 100% interest of the Plomosas mine in Chihuahua by acquiring the remaining 10% interest from Retec Guaru S.A. de C.V.
  • Vizsla Resources Corp., entered in a definitive share purchase agreement to acquire an option over the consolidated mineral rights, infrastructure and processing facilities comprising the large scale Panuco-Copala mining camp in Sinaloa. Vizsla has agreed to acquire all of the outstanding shares of Canam Alpine Ventures Ltd. Vizsla will acquire Canam for a total staged consideration of 18M common shares of Vizsla by issue 6M common shares on closing of the acquisition, 6.5M common shares upon definition of a resource greater than 200K Oz AuEq, and 5.5M common shares upon exercise of the option. Also, Vizsla will pay USD $700K on signing, USD $450K in the first anniversary of signing, USD $5,184,500 and work commitment of USD $3,423,000 in the second anniversary of signing, USD $6,846,000 in the third anniversary of signing, USD $8,557,500 in the fourth anniversary of signing, USD $9,269,000 in the fifth anniversary of signing, and USD $11,907,425 in the sixth anniversary of signing.
  • Ridgestone Mining Inc., entered in an agreement to purchase a 100% interest in 10 mining concessions adjacent to its Rebeico project in Sonora. These 10 mining concessions cover an area of 3,292 hectares and contain numerous artisanal old workings and mineralized outcrops. Terms of the acquisition include a cash payment of USD $83K and the issuance of 5M common shares of Ridgestone to the vendor.

ON SOCIAL RESPONSIBILITY

  • Fortuna Silver Mines Inc., through its subsidiary Minera Cuzcatlán has invested MXP $172.2M in San Jose del Progreso, Oaxaca and surrounding communities, since it started operations in 2011. One of the most outstanding projects to date is the breeding and fattening of lambs in the community of El Cuajilote. This has been successfully promoted by Compañía Minera Cuzcatlán since 2016. The company contributes with inputs and technical advice, while producers provide labor. Additionally, the suppliers of inputs are 100% local, also benefiting companies in the region. Currently 70% of 400 square meters of productive infrastructure have been installed. The amount of sheep bellies, of a target of 90, has been increased by 45% by keeping them in the feeding and reproduction program. Likewise, the percentage of births has increased from 80% to 125%. In this way, Compañía Minera Cuzcatlán makes a difference for families benefiting from this and other programs, since they receive financial support by providing inputs for food by the company and training according to the productive or reproductive season.

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, quartz vein with stibnite and displaying lattice  bladed texture in a prospect in San Luis Potosi, Mexico.  Photo by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the Third Week of September, 2019

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During the 38th week of the year (September 16th to September 22nd, 2019), at least 20 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, Peñasquito in Zacatecas is again victim of an illegal blockade, operations are suspended by Newmont Goldcorp. ON EXPLORATION, in Zacatecas, Advance Gold is to carry a second phase geophysical survey on its Tabasquena project. in Jalisco, Silver Spruce announced the approval of the permits for drilling Cocula. In Hidalgo, Prospero Silver informed on drilling results from its Pachuca SE project. ON MINING, a renewed illegal blockade strikes Newmont Goldcorp’s Peñaquito mine, in Zacatecas. Starcore released first quarter 2019 results. Consolidated Zinc filed first semester 2019 results. Mexus Gold realized the first gold sale from it Santa Elena mine in Sonora. ON FINANCING, Newmont Goldcorp completed a senior notes offering for $690 M. San Marco Resources is consolidating its share base on a 3 to 1 basis. Defiance Silver is settling a debt by issuing shares. Sierra Metals amended the number of shares to re-purchase. VVC Exploration extends the closing of its private placement financing for up to CA$2.5 M. Galore Resources announced the extension of the current non-brokered private placement intended to raise $1.5 M. ON RESOURCES AND DEVELOPMENT, Leagold commenced a large multi-year exploration program on eight linear kilometres of the southern portion of the Bermejal intrusive stock. ON DEALS AND CORPORATE ISSUES, Azure Minerals won a dispute on the recovery of a significant amount of VAT. Silver Spruce is to continue the due diligence on the Cocula project in Jalisco. Magna Gold completed the acquisition of Las Marias and Las Cabañas properties, adjacent the former and 10 km SW the latter from its Mercedes project in Sonora. ON SOCIAL RESPONSIBILITY. Alamos Gold received an award on community responsibility by three organizations for work on the Mulatos community, in Sonora.

ON MEXICO ISSUES

  • A new illegal blockade on Peñasquito, Zacatecas, forces Newmont Goldcorp to suspend operations. The blockade that was set on September 14, 2019, is backed by the Zacatecan senator José Narro, from the ruling party Morena.

ON EXPLORATION

  • Silver Spruce Resources Inc. announced the approval of the Informe Preventivo on  the Cocula project in Jalisco, which is the environmental application required for drilling. The permit allows for 47 drill sites over the 750 m strike length of the known mineralised area.
  • Advance Gold Corp. informed that a second phase geophysical survey will be carried out at its Tabasquena project in Zacatecas. The first phase 3D induced polarisation survey identified a “a significant continuous chargeability anomaly, with an east-west width of approximately 250 metres and an apparent strike length of over 800 metres” directly below the Tabasquena vein, which saw previous production under the company Peñoles.
  • Prospero Silver Corp. posted results from holes drilled in 2019 on its Pachuca SE project, funded by partner Fortuna Silver Mines Inc. The 5,933 m diamond drilling in eight holes produced highlighted intervals of 0.78 m @ 0.02 gpt Au, 83 gpt Ag; 1.50 m @ 0.28 gpt Au, 46 gpt Ag; 0.40 m @ 0.49 gpt Au, 23 gpt Ag; 0.35 m @ 1.69 gpt Au, 675 gpt Ag; 1.80 m @ 0.58 gpt Au, 144 gpt Ag. Prospero suggests this indicates a district wide preserved epithermal mineralized zone, with fluid inclusion and mineralogical data pointing to the top of the mineralised zone 200 m below the actual surface, and the paleo-water table 100 m above the top of the Varal ridge.

ON MINING

  • Newmont Goldcorp Corp. Informed “that the dialogue sponsored by the government of Mexico to resolve issues with a trucking contractor and the San Juan de Cedros community (one of Peñasquito’s 25 neighboring communities) has been suspended and that an illegal blockade has resumed”. The company has enhanced water availability to neighbouring communities through a number of projects over the years, and proposed several additional measures for the communities in general and for San Juan de Cedros in particular, on the most recent government sponsored talks with the protesters.
  • Starcore International Mines Ltd. filed the results for the first quarter, ended July 31, 2019. During the period the company milled 60.8 K tonnes @ 1.99 gpt Au, 31.7 gpt Ag, recovering 85.1% Au, 58.4% Ag, to produce 3,711 Oz AuEq at its San Martin mine in Queretaro. The mine operating cash cost was US$1,234 per AuEq Oz and the AISC US$1,452 per AuEq Oz.
  • Mexus Gold US. sold its first gold, produced at its Santa Elena mine in Sonora (not to mistake for First Majestic’s Santa Elena mine, also in Sonora).
  • Consolidated Zinc Ltd. released its first semester 2019 interim report. During the period 27.1 K tonnes of ore @ 13.1% Zn, 4.1%Pb were mined from its Plomosas mine in Chihuahua, while extracting also 14 K tonnes of waste and driving 1,192 m of underground development. By the end of the period the company had total assets of US$4.3 M, total liabilities for US$5.2 M and total cash US$0.2 M, with US$2.1 M of debt.

ON FINANCING

  • Newmont Goldcorp Corp. closed a senior notes offering at 2.8% netting $690 M of gross proceeds. The Company intends to use the net proceeds of this offering for repayment of the outstanding 5.125% senior notes due October 1, 2019 (Peñasquito, Zacatecas).
  • San Marco Resources Inc. is consolidating its shares on a 3 to 1 basis. Once the consolidation process is complete, the company will have 22.6 M issued and outstanding shares (Chunibas, Sonora).
  • Defiance Silver Corp. intends to settle up to $150 K of debt issuing up to 535 K common shares. The issuance of the shares is subject to approval by the TSX, as some of the creditors are insiders of the company, and the settlement is considered a related party transaction (San Acacio, Zacatecas).
  • Sierra Metals Inc. announced an amendment to the number of shares the company can repurchase, from 1.5 M to 2.5 M shares, or approximately 1.54% of the issued and outstanding shares of the company (Bolivar, Chihuahua).
  • VVC Exploration Corp. announces the extended closing of its private placement financing under which expects to accrue up to CA$2.5 M. A finder’s fee not exceeding 7% of the aggregate amount raised is to be paid. In conjunction with the private placement, VVC also will be converting up to $200 K of its indebtedness to units of the company (Kaity, Chihuahua).
  • Galore Resources Inc. announced that the previously announced non-brokered private placement financing intended to raise up to $1.5 M has been extended under conditional acceptance by the TSX, as the company is continuing to collect subscriptions from investors. The company plans to submit documentation and announce a closing on a first tranche of the financing in the next few days, before following up on completing and closing on a second tranche in the next 30 days (El Alamo, Zacatecas).

ON RESOURCES AND DEVELOPMENT

  • Leagold Mining Corp. commenced a large multi-year exploration program on the southern portion of the Bermejal intrusive at its Los Filos mine complex in Mexico. Eight linear kilometres of favourable contacts between the intrusive and the hosting sedimentary rocks are to be explored, compared with the already explored four linear kilometres that have yielded past production and actual resources reaching 6 M Oz Au on the Bermejal intrusion. The first phase will include surface geochemistry, geophysics, mapping, trenching and up to 10,000 m of drilling in 48 holes. Known prospects of interest include El Carmen, where up to 14.5 m @ 8.1 gpt Au and 12.8 m @ 12.8 gpt Au.

ON DEALS AND CORPORATE ISSUES

  • Azure Minerals Ltd. announced a dispute over the recovery of IVA (Mexican equivalent to GST) has been finalised with the Mexican authorities, resulting in the payment of Mx$10.33 M or AU$767 K. This payment results from a court ruling over IVA paid in 2016, reimbursed with interests (Mesa de Plata, Sonora).
  • Silver Spruce Resources Inc. announced its intention to continue the due diligence to support a definitive purchase decision of the Cocula project in Jalisco, subject to its binding letter of agreement with ProDeMin S.A. de C.V.
  • Magna Gold Corp. announced that it has completed the acquisition of the Las Marias property and Las Cabañas mineral claim in Sonora. Las Marias property consists of seven mining concessions covering 646 ha adjacent to the Mercedes property, and Las Cabañas consists of two claims covering 248 ha approximately 10 km SW of the Mercedes property. The total purchase price for the new mineral concessions and other rights was $250 K and the issuance of 1 M common shares.

ON SOCIAL RESPONSIBILITY

  • Alamos Gold Inc. was named the Best Corporate Social Responsibility Practice 2019 in the category of Connecting with the Community. The award was bestowed by the Mexican Center for Philanthropy (Cemefi), the Alliance for Corporate Social Responsibility in Mexico (AliaRSE), and Forum Empresa (Mulatos, 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: Strong iron oxides on a quartz vein from an orogenic gold project in Oaxaca. Picture by Jorge Cirett.

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The Mining and Exploration News in Mexico: Highlights on the First Week of September, 2019

IMG_0970aBy Jorge Cirett

During the 36th week of the year (September 2nd to September 8th, 2019), at least 20 press releases were announced by companies working in Mexico. ON MEXICO ISSUES Karen Flores Arredondo was appointed General Director of CAMIMEX. VVC Exploration is searching for financing to start operations at Samalayuca.  ON EXPLORATION, in Baja California, One World Lithium is to conduct a field visit to its Salar del Diablo project. In Sonora, Minera Alamos announced the discovery of a new target, Gold Ridge. In Chihuahua, Ethos Gold released results on 16 RC holes at the Purisima project. In Coahuila, Prize Mining released assay results of several targets on a 20 km long trend. In Zacatecas, Galore received assays for the first two holes at El Alamo target of its Dos Santos project; Advance Gold completed an IP survey at the Tabasqueña project; Alien Metals released exploration results at San Celso, Los Campos and Donovan 2. ON MINING, Argonaut Gold completed a fourth water well, and now has the capacity to sustain production at 30 K tonnes a day at San Agustin, Zacatecas. ON FINANCING, Mexican Gold granted 650 K stock options. Defiant Silver seeks to extend the expiry date of some warrants. SilverCrest Metals granted options for 975 K shares. Telson Mining received conditional approval for a US$12 M loan. Southern Silver Corp.  closed the final tranche of financing for gross proceeds of $1.1 M. Silver Viper intends to raise up to $3.0 M through a private placement financing round. ON RESOURCES AND DEVELOPMENT, GoGold released results for four more holes at its Los Ricos project in Jalisco. Pan American Silver reported all-inclusive reserves and resources of 203.3 M Oz Ag, 2.16 M Oz Au on its La Colorada, Dolores and La Bolsa properties. Minera Alamos received one more permit to start construction at its Santana project in Sonora. Goldplay Exploration released underground channel sampling results from San Marcial, Sinaloa. ON DEALS AND CORPORATE ISSUES, Mexican Gold Corp. appointed new directors and announced an incoming new resource estimate for Las Minas, Veracruz. Consolidated Zinc acquired the remaining 10% of the Plomosas mine rights to gain a 100% interest. The company also announced a favourable court ruling on a land use agreement for the Plomosas mine.   ON SOCIAL RESPONSIBILITY. No relevant news.

ON MEXICO ISSUES

  • The sectional president from Samalayuca, Chihuahua, Javier Melendez Cardona, was interviewed on the coming mining investment on La Gloria by VVC Exploration Corp. He explained the project is in the financing stage of a process that is to greatly benefit the local communities.
  • Karen Flores Arredondo is appointed CAMIMEX’s (Cámara Minera de México) General Director as of September 15, 2019. Flores Arredondo has recently worked for Agnico Eagle in Mexico, and has held posts with other private enterprises and government agencies related to the Mining Industry.

ON EXPLORATION

  • Prize Mining Corp. released assay results from surface sampling at its Manto Negro project in Coahuila. The sampling on the Apache, San Jose and Las Curvas concessions returned up to 1.3 m @ 3.86% Cu, 44 gpt Ag; 1.2 m @ 2.62% Cu, 58 gpt Ag; 1.8 m @ 2.31% Cu, 28 gpt Ag and six chip samples running 7.7% to 29.3% Cu and 190 to 759 gpt Ag. At San Jose a best sample interval of 1.8 m @ 2.3% Cu, 28 gpt Ag and up to 17.1% Cu and 1,689 gpt Ag from dumps. At Las Curvas the best mineralised interval was 2 m @ 2.5% Cu, 33 gpt Ag and up to 23% Cu, 710 gpt Ag from dumps. Prize is pursuing a mineralised horizon over 20 km in length in the Formation San Marcos red-bed sandstone below the Cupido Formation limestone.
  • Ethos Gold Corp. released results of the completed 16 reverse circulation (RC) drill campaign at its Purisima project in Chihuahua. At the site Ethos targeted shallow gold mineralisation in epithermal banded quartz veining and associated silicification and stockworks. Highlighted results include 3.05 m @ 0.76 gpt Au; 7.62 m @ 0.52 gpt Au; 9.14 m @ 0.43 gpt Au, 14 gpt Ag; 6.10 m @ 0.40 gpt Au, 9 gpt Ag; 15.24 m @ 0.50 gpt Au; 6.10 m @ 0.50 gpt Au. Ethos decided to terminate the Purisima option agreements.
  • Galore Resources Inc. received assays for the first two core holes at El Alamo target, part of its Dos Santos project in Zacatecas. Highlighted results comprise 3.40 m @ 3.46 gpt Au, 3 gpt Ag (including 1.20 m @ 8.89 gpt Au); 10.90 m @ 14 gpt Ag (including 1.0 m @ 88 gpt Ag); 9.15 m @ 2.02 gpt Au, 5 gpt Ag. The results also define intervals tens of meters in width with anomalous silver in the 1-10 ppm range. Galore informs these results, along with some other tracer elements, support the view that this is the upper part of an epithermal system.
  • Minera Alamos Inc. announced the identification of Gold Ridge, a new mineralised zone on its Santana property in Sonora. One third of 147 rock samples collected exhibit grades >0.10 gpt Au, ranging from 0.1 gpt to 3.6 gpt Au and 5 gpt Ag to 669 gpt Ag, with the mineralised surface covering an area of 1,000 m x 200 m located 2-3 km from the currently planned heap leach operations at Santana.
  • Advance Gold Corp. completed a 3D induced polarization (IP) geophysical survey on its Tabaqueña project in Zacatecas. The 9.6 line kilometre survey highlighted a 250 wide by 800 m long continuous chargeability anomaly.
  • One World Lithium Inc. announced the visit of Mike Rosko of Montgomery & Associates to the Salar del Diablo project in Baja California, along with the president and director of OWL. The visit is to include previous and proposed drill site locations as well as surface geological features.
  • Alien Metals Ltd. released results from recent exploration at its San Celso, Los Campos and Donovan 2 projects in Zacatecas. At San Celso, further assays include 18 anomalous samples averaging 272 gpt Ag, with a high of 1,275 gpt Ag. At Los Campos, 14 anomalous samples averaged 185 gpt Ag, with a peak of 547 gpt Ag. At Donovan 2, a sample returned 2.68 gpt Au.

ON MINING

  • Argonaut Gold Inc. completed the fourth water well at its San Agustin operation in Durango. The new well demonstrated sufficient water capacity to meet the needs of the operation to run at 30 K tonnes per day of ore, which is planned for the fourth quarter of 2019.

ON FINANCING

  • Mexican Gold Corp. granted 650 K stock options to an officer and an employee of the company (Las Minas, Veracruz).
  • Defiant Silver Corp. intends to seek TSX Venture Exchange approval to extend the expiry date of 6.19 M warrants, previously issued, by one year (San Acacio, Zacatecas).
  • SilverCrest Metals Inc. granted stock options for 975 K shares to directors, officers, employees and consultants of the company (Las Chispas, Sonora).
  • Telson Mining Corp. received conditional approval for a US$12 M medium term loan from an international investment bank to finalize construction at Tahuehueto, Durango.
  • Southern Silver Exploration Corp. closed the final tranche of the previously announced private placement, for gross proceeds of $1.1 M. In total the company closed two tranches for gross proceeds of $4.2 M (Cerro Las Minitas, Durango).
  • Silver Viper Minerals Corp. intends to overtake a private placement financing to raise gross proceeds of up to $3.0 M (La Virginia, Sonora).

ON RESOURCES AND DEVELOPMENT

  • GoGold Resources Inc. released results for three more diamond drill holes at Los Ricos main area and the first hole drilled at the San Juan target of its Los Ricos project in Jalisco. Highlighted drill core intervals comprise 6.2 m @ 1.17 gpt Au, 158 gpt Ag; 15.5 m @ 0.53 gpt Au, 84 gpt Ag (including 2.7 m @ 2.04 gpt Au, 217 gpt Ag); 17.1 m @ 1.59 gpt Au, 364 gpt Ag (including 5.6 m @ 3.81 gpt Au, 818 gpt Ag) at Los Ricos and 16.9 m @ 0.54 gpt Au, 68 gpt Ag (including 5.0 m @ 1.46 gpt Au, 148 gpt Ag) at the San Juan target.
  • Pan American Silver Corp. reported mineral reserves of 557 M Oz Ag, 5.1 M Oz Au, of which 141.6 M Oz Ag and 1.58 M Oz Au are in its three properties in Mexico: La Colorada, Dolores and La Bolsa. Reserves and resources all inclusive comprise 148.3 M Oz Ag, 129.8 K Oz Au at La Colorada in Zacatecas, 45.4 M Oz Ag, 1,383.5 K Oz Au at Dolores in Chihuahua and 9.6 M Oz Ag, 651.7 K Oz Au at La Bolsa in Sonora.Pan American Silver Reserves1
  • Minera Alamos Inc. received the ETJ (Estudio Tecnico Justificativo) for the Santana Gold project in Sonora. Combined with the previously approved MIA (Manifiesto de Impacto Ambiental) the company holds all the necessary rights to initiate construction of commercial scale operations at Santana.
  • Goldplay Exploration Ltd. released results from underground channel sampling in a re-opened old adit at the Faisanes target of its San Marcial project in Sinaloa. A zone of 11 m @ 155 gpt includes 6 m @ 232 gpt Ag, ending in mineralisation at the deepest sampled point within the tunnel. “The Company is reviewing plans to extend the tunnel beyond this high-grade Interval”.

ON DEALS AND CORPORATE ISSUES

  • Mexican Gold Corp. announced the appointment of Matt Liard as Vice President Exploration, Sonny Bernales as Senior Geologist and Michael Kanevsky as CFO. The company outsourced an updated 43-101 resource estimate with an underground cut-off grade, that should be released in October 2019 (Las Minas, Veracruz).
  • Consolidated Zinc Ltd. entered into a binding agreement with Retec Guaru S.A. de C.V. under which CZC is to acquire the remaining 10% interest in the Plomosas mine in Chihuahua. “The purchase consideration for the acquisition of the Retec interest in MLAZ is a 1% Net Smelter Return Royalty (the “Royalty”) from the sale of zinc and lead concentrates produced from Plomosas”. Completion of the agreement is expected by 30 September 2019.
  • Consolidated Zinc Ltd. announced that the Appeals Court of Chihuahua ruled in favour of the company’s subsidiary regarding a dispute over a land use agreement with a local rancher in place for its Plomosas mine in Chihuahua.

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: Quartz veinlet on an orogenic gold project in Oaxaca. Picture by Jorge Cirett

IMG_0970a