During the 39th week of the year (September 25th to October 1st, 2023), only 11 companies working in Mexico posted news releases (the weekly low record is nine, since 2015). One company reported exploration on one of its properties, while no news on mining were released. Five companies informed on the opening or closing of private placements, their assistance to investor conferences and/or the amendment of credit facilities. One company presented drilling results from one of its properties and one other an updated mineral resource estimation on one of its mines. The government cancelled nine mining concessions to one company in Sonora. One company updated on results of its annual general meeting and one other informed on modifications to streaming amendments. ON MEXICO ISSUES, the federal government is playing all tricks available on its hat to get the Sonora Lithium deposit under its control, expropriating mining concessions without calling it an expropriation, of what they see as a project with a potential large income revenue and a stepping stone on resources sovereignty. Camimex regards the cancellation infeasible while pointing that exploration expenditure has fallen 40% in recent years. A Labor Panel has been installed under T-MEC to review the US claim against Grupo Mexico in one of its mining units. ON EXPLORATION, In Chihuahua, Kootenay Silver informed four drill holes have been completed at Columba. ON MINING, no relevant news. ON FINANCING, Aztec Minerals closed the final tranche of a private placement for C$639 K, GR Silver was granted an extension for its financing placement, Regency Silver completed the first tranche of an upsized private placement. ON RESOURCES AND DEVELOPMENT, Heliostar Metals reported drilling results from Ana Paula, in Guerrero. Guanajuato Silver presented an updated resource estimate for San Ignacio, in Guanajuato. ON DEALS AND CORPORATE ISSUES, the Mexican government cancelled nine mining concessions to Ganfeng’s Lithium in Sonora, in an unscrupulous bid to get its hands on the only defined lithium resource in Mexico. Southern Silver provided an update on results from its AGM. Bear Creek Mining presented two press releases to inform on changes on the two streaming agreements on the Mercedes mine production in Sonora. ON SOCIAL RESPONSIBILITY, no relevant news.
ON MEXICO ISSUES
Camimex (Cámara Minera de México) regards the cancellation of Ganfenfg Lithium’s concessions in Sonora as not viable. Ganfeng was served in August with the cancellation notice by the government on grounds of lack of investment, which the company denies. The exploration expenditure in México has fallen close to 40% in the last seven years.
Ganfeng’s Lithium cancelation of claims in Sonora by the federal government will have to be dealt with in national courts, as Mexico and China do not count with a trade agreement.
Marath Bolaños, head of the Secretaría del Trabajo y Previsión Social (Labor Bureau) stated that the Labor Panel under the T-MEC has been formed, to review the controversy between the US government and Grupo Mexico’s San Martín mine in Zacatecas.
The president of Mexico indicated that its government is reviewing lithium mining concessions.
Kootenay Silver Inc. updated on drilling progress of their program at Columba, in Chihuahua. Four diamond holes have been completed of the expected 12-15 holes in the 3,000 m program. “Analyses are awaited, however visual confirmation of mineralization and veining typical of D-Vein has been reported by the logging geologists in the holes to date where modeling predicted. Veining and associated stockwork mineralization in drilled length in each hole was observed to measure approximately 5.0 m vein/ stockwork, 8.2 m vein and 23 m stockwork, 10 m vein and 26 m stockwork and 1.0 m vein, 3.0 m stockwork in holes CDH-23-136 through CDH-23-139 respectively”.
No Relevant News.
Aztec Minerals Corp. closed the second and final tranche of its non-brokered private placement for gross proceeds of CAD$639.1 K. Aggregate gross proceeds from both tranches are CAD$1.55 M. Alamos Gold Inc. participated in the financing with $140.6 K (Cervantes, Sonora).
Capstone Copper Corp. amended its existing revolving credit facility to increase the aggregate commitments from $600 M to $700 M “and extend the maturity from May 2026 to September 2027. The Amended Credit Facility will bear interest on a sliding scale of adjusted term SOFR plus a margin of 2.000% to 2.875%”. Capstone cash and cash equivalents position by the end of June 2023 was $520 M (Cozamin, Zacatecas).
GR Silver Mining Ltd. was granted an extension by the TSX Venture Exchange to complete its non-brokered private placement for gross proceeds of up to $1 M. A first tranche of $329 K in gross proceeds was closed on August 10, 2023 (Plomosas, Sinaloa).
Regency Silver Corp. completed the first tranche of a previously announced private placement, which has been upsized to C$1.75 M from C$1.5 M (Dios Padre, Sonora).
Vortex Metals Inc. will be participating in the 23rd Investment Conference organized by CM-Equity AG in Munich (Riqueza Marina, Oaxaca).
ON RESOURCES AND DEVELOPMENT
Heliostar Metals Ltd. reported drilling results from the Ana Paula project in Guerrero. These two infill holes are within the “High Grade Panel” at the deposit, and are the last that are to be included in the resource update planned for November 2023. Highlighted core length intercepts comprise 35.9 m @ 8.17 gpt Au (including (11.8 m @ 13.55 gpt Au); 83.6 m @ 8.57 gpt Au (including 63.0 m @ 10.41 gpt Au, which includes 12.0 m @ 18.36 gpt Au); 57.0 m @ 6.03 gpt Au (including 5.0 m @ 45.44 gpt Au); 14.6 m @ 32.98 gpt Au (or 18.60 gpt Au if assays cut to 100 gpt Au).
Guanajuato Silver Company Ltd. presented a new mineral resource estimate for its San Ignacio mine in Guanajuato. Measured and indicated resources comprise 790 K tonnes @ 123 gpt Ag, 2.10 gpt Au, containing 3.14 M Oz Ag, 53,000 Oz Au, and inferred resources of 2.17 M tonnes @ 127 gpt Ag, 2.27 gpt Au, containing 8.9 M Oz Ag, 158,000 Oz Au. “… an increase of 130% in the measured & indicated category and 283% in the inferred category.”
ON DEALS AND CORPORATE ISSUES
The Mexican government, through the Direccion General de Minas (DGM) cancelled nine mining concessions in Sonora to Ganfeng Lithium, including those where the largest (and so far, the only) lithium deposit in Mexico is located. The company was informed of the cancellation last August, with the government stating that the minimum investment required between 2017 and 2021 was not fulfilled and Ganfeng declaring its compliance above that limit. The company has already filed claims against the resolution at the Economy Secretariat (Secretaría de Economía). Note by editor. – This is one more issue between private capital and the Mexican government, with a president with a world vision from the 1970’s, where the State is to have a ruling fist on all economic activities, and the president a final saying on what is to be done or not.
Southern Silver Exploration Corp. provided a corporate update from the company’s annual meeting. During the meeting seven incumbent directors were elected and the chartered accountants reappointed. Lawrence Page, Robert Macdonald and Killian Ruby were reappointed as president, vice president exploration and chief financial officer respectively. (Cerro Las Minitas, Durango).
Bear Creek Mining Corp. made the final gold delivery pursuant to a gold pre-pay streaming agreement with Nomad Royalty Co. Ltd. which was assumed upon the acquisition of the Mercedes mine, in Sonora, in April 2022. As a result, over 300 additional ounces of gold produced at Mercedes per month will now be fully available for sale by the Company. A promissory with 1368445 B.C. Ltd. was amended to extend the maturity from the end of September 2023 to the end of November 2023.
Bear Creek Mining Corp. announced a restructuring of its current stream and debt obligations with Sandstorm Gold Ltd. to improve the Mercedes mine ability to produce free cash flow near term by reducing near-term Au and Ag stream delivery obligations and the refinancing and extensions of Bear Creek’s debt with Sandstorm. Sandstorm will refinance its US$22.5 M convertible debenture into a 5-year convertible promissory note at 7% per year and convertible into Bear Creek shares at C$0.73 per share. “Sandstorm has agreed to make up to US$8 million in additional credit” prior to the end of August 2024. Bear Creek has to complete an equity financing to raise at least CAD$9.5 M.
ON SOCIAL RESPONSIBILITY
No relevant news.
On the image below: Geologist Julio Carcamo on a silicified ridge in the Sonoran Desert. Picture by Jorge Cirett.
During the 37th week of the year (September 11th to September 17th, 2023), 21 companies working in Mexico posted news releases. Two companies reported exploration advances on their properties, and one company reported quarterly results. Six companies informed on the opening or closing of private placements, their assistance to investor conferences, the amendment of terms on subscriptions and information circulars. Five companies presented drilling results from their properties, one presented an updated mineral resource for its property, another two presented updated PEAs and three more updated on exploration activities on their projects. One company intends to change name and one other informed on litigation advances against the federal government. ON MEXICO ISSUES, no relevant news. ON EXPLORATION, In Oaxaca, Vortex Metals updated on exploration work in Zaachila. In Zacatecas, Radius Gold commenced drilling at Tropico. ON MINING, Starcore International Mines reported results for its first quarter 2023. ON FINANCING, Colibri Resource informed on the closing of a financing round for US$687 K. Sailfish Royalty declared a quarterly dividend. Fortuna Silver and Regency Silver are to attend investor conferences. Sierra Madre Gold and Silver amended the terms of subscription receipts. Bear Creek Mining updated on the convertible promissory notes for the payment of US$25 M on the acquisition of the Mercedes mine in Sonora. ON RESOURCES AND DEVELOPMENT, Vizsla Silver reported drilling results from Panuco, in Sinaloa. Prime Mining announced expansion drilling results from Los Reyes, in Sinaloa. Silver Tiger Metals presented an updated mineral resource estimate for its El Tigre project in Sonora. GoGold Resources released the updated PEA on Los Ricos Sur project in Jalisco. Gold Resource updated on expansion and infill drilling at its Don David mine in Oaxaca. Alamos Gold released excellent drilling results from two target areas on its Mulatos property in Sonora. Sierra Madre Gold and Silver updated on exploration at recently acquired La Guitarra property in Estado de Mexico. Avino Silver & Gold Mines released results from deep drilling at Avino, in Durango. Orex Minerals informed on hyperspectral alteration studies being carried out at Coneto, in Durango. Golden Minerals filed an updated PEA for Velardeña, in Durango. ON DEALS AND CORPORATE ISSUES, Golden Tag Resources intends to change name to Silver Storm Mining. Almaden Minerals reported the Mexican Federal Administrative Court granted a provisional injunction to Almaden, on its fight to get their mining concessions back into good standing. Argonaut Gold reached an agreement with four ejidos to operate for three more years at El Castillo and San Agustín properties in Durango. ON SOCIAL RESPONSIBILITY, no relevant news.
ON MEXICO ISSUES
No Relevant News.
Radius Gold Inc. commenced drilling at its Tropico project in Zacatecas. The company envisages a 2,000 m drill program on the hot spring type sinter and breccia pipe system, targeting a “Fresnillo-style” mineralized system at depth, and near-surface bulk mineable gold mineralization on a 450 m by 250 m breccia pipe.
Vortex Metals Inc. completed the phase I geologic field program for the environmental study at Zaachila, in Oaxaca. “A total of 13 trenches have been excavated … across exposures of weakly metamorphosed Upper Jurassic sedimentary, volcanic and intrusive rocks where historical surface sampling identified copper mineralization. A total of 387 meters of trench have been cut yielding a total of 271 chip samples” with results pending. Copper mineralization has been observed as malachite, azurite, chalcopyrite and bornite, associated to silica-rich exhalite beds, as quartz-carbonate veinlets cutting silicified and chloritized meta-sediments and volcanics (green schist facies) and as bedded units in the metasediments. “In a few of the less oxidized exposures, sericite was widely observed”.
Starcore International Mines Ltd. reported results for its first quarter ended July 31, 2023. At the San Martín Mine in Querétaro, 57.7 K tonnes were milled, averaging 1.14 gpt Au, 14.4 gpt Ag, recovering 84.0% Au, 45.8% Ag, to produce 1,800 Oz Au, 12.3 K Oz Ag, at cash cost $2,158 per Oz AuEq. At the end of the period cash on hand was $5.7 M, and working capital $6.2 M. “Our quarterly production reflects our recent difficulties in reaching our higher-grade ore bodies or stopes….. We expect to achieve our targets over the remainder of the year as we are currently completing the development to the high-grade zones”.
Sailfish Royalty Corp. declared the company’s third quarterly dividend for 2023, in the amount of US$0.0125 per common share (Gavilanes, Durango).
Fortuna Silver Mines Inc.announced it is going to be present at the Gold Forum Americas in Colorado Springs, Colorado (USA), from September 17 to September 20, 2023 (San Jose, Oaxaca).
Regency Silver Corp. announced its chairman is to be present at the 2023 Kinvestor Days Virtual Conference on September 19, 2023 (Dios Padre, Sonora).
Colibri Resource Corp. closed a second and final tranche of its non-brokered private placement, for gross proceeds of US$200 K, which combined with the first tranche proceeds total US$687 K (Evelyn, Sonora).
Sierra Madre Gold and Silver Ltd. amended the terms of 5.12 M subscription receipts in order to extend the escrow release conditions and termination for an additional 30-day period (La Guitarra, Estado de México).
Bear Creek Mining Corp. updated on the convertible promissory note intended to be issued to defer a US$25 M current liability originally payable to a wholly-owned subsidiary of Equinox Gold Corp. and is issuing an amendment to its management information circular dated August 9, 2023. “The Company further announces that it has closed an unsecured and non-convertible demand loan (the “Loan”) from EquinoxGold in the amount of US$1.3 million, the proceeds of which will be used for working capital purposes and further optimization of the Mercedes Mine”. The amendment refers to an exemption of formal valuation requirement described on section 5.5(b) of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (Mercedes, Sonora).
ON RESOURCES AND DEVELOPMENT
Vizsla Silver Corp. reported results from 13 new holes targeting the La Luisa vein on its Panuco project, in Sinaloa. Highlighted true-width intervals comprise 11.20 m @ 7.14 gpt Au, 229 gpt Ag 0.3% Pb, 1.6% Zn; 8.90 m @ 2.85 gpt Au, 61 gpt Ag, 0.1% Pb, 2.2% Zn (including 0.77 m @ 10.35 gpt Au, 98 gpt Ag, 0.4% Pb, 15.8% Zn); 7.70 m @ 1.90 gpt Au, 67 gpt Ag, 0.7% Pb, 0.3% Zn (including 0.54 m @ 12.35 gpt Au, 250 gpt Ag, 5.6% Pb, 10.4% Zn and 1.08 m @ 1.48 gpt Au, 171 gpt Ag, 1.6% Pb, 11.2% Zn); 5.00 m @ 2.49 gpt Au. 155 gpt Ag, 0.9% Pb, 4.5% Zn. 8.85 m @ 0.98 gpt Au, 67 gpt Ag, 0.1% Pb, 1.0% Zn; 1.16 m @ 1.12 gpt Au, 76 gpt Ag, 0.2% Pb, 14.9% Zn. To date Vizsla Silver has reported 33 holes from La Luisa outlining a mineralized footprint 700 m long, 400 m down dip and 3.07 m in width, averaging 175 gpt Ag, 3.40 gpt Au, 0.28 % Pb, 1.33 % Zn (or 449 gpt AgEq).
Prime Mining Corp. reported expansion drill results from Los Reyes project in Sinaloa. “This drilling targeted areas extending materially beyond the mineral resource envelope at the Z-T, Guadalupe and Central Zones” which are the ones with defined resources. Highlighted true width intervals comprise 20.50 m @ 3.16 gpt Au, 55 gpt Ag (including 4.0 m @ 9.71 gpt Au, 85 gpt Ag); 2.20 m @ 10.10 gpt Au, 264 gpt Ag (including 1.20 m @ 17.80 gpt Au, 437 gpt Ag); 0.95 m @ 18.20 gpt Au, 2,024 gpt Ag; 1.0 m @ 5.47 gpt Ag, 615 gpt Ag.
Silver Tiger Metals Inc. announced an updated Mineral Resource Estimate for its El Tigre project in Sonora. “A total of 482 drill holes (124,851 metres) and 3,160 surface and adit channel samples (6,473 metres) were used in the Mineral Resource Estimate”, which includes the South Zone In Pit, South Zone Out-of-Pit, North Zone Out-of-Pit, Vein (S & N) Total, Low Grade Stockpile and Tailings Zones. Indicated Resources comprise 46.4 M tonnes @ 0.39 gpt Au, 25 gpt Ag, 0.01% Cu, 0.03% Pb, 0.06% Zn, containing 575 K Oz Au, 37.2 M Oz Ag, 9.4 M Lb Cu, 35.5 M Lb Pb, 64.3 M Lb Zn. Inferred resources comprise 20.9 M tonnes @ 0.56 gpt Au, 78 gpt Ag, 0.04% Cu, 0.13% Pb, 0.22% Zn, containing 373 K Oz Au, 52.6 M Oz Ag, 18.1 M Lb Cu, 59.7 M Lb Pb, 103.4 M Lb Zn.
GoGold Resources Corp. released the updated preliminary economic assessment (PEA) and mineral resource estimate for its Los Ricos South project in Jalisco. The report foresees commodity prices of $23.75 per Oz Ag and $1,850 per Oz Au, an After-Tax (5%) net present value of US$458 M, an After-Tax IRR of 37%, and an 11-year mine life (LOM) producing 88 M Oz AgEq (47 M Oz Ag, 493 K Oz Au, 14 M Lb Cu), with initial capital costs of $148 M, expansion capital of $69 M and sustaining capital of $72 M during LOM, producing 8 M Oz AgEq per year at cash cost $8.15 per Oz AgEq and all-in sustaining costs of $9.02 per Oz AgEq. The new resource estimate envisages 11.1 M tonnes averaging 1.43 gpt Au, 151 gpt Ag, 0.11% Cu in the measured and indicated resources category and 1.4 M tonnes at 1.22 gpt Au, 120 gpt Ag, 0.28% Cu in the inferred category, containing 511 K Oz Au, 53.8 M Oz Ag, 27.3 M Lb Cu (1.26 Moz AuEq) and 54.1 K Oz Au, 5.3 M Oz Ag, 8.5 M Lb Cu (140.9 K Oz AuEq) respectively.
Gold Resource Corp. provided an update on expansion and infill diamond drilling on the Arista, Three sisters, Gloria and Switchback vein systems at its Don David mine in Oaxaca. Highlighted true width intervals comprise 5.63 m @ 1.87 gpt Au, 279 gpt Ag, 0.2% Cu, 0.9% Pb, 1.6% Zn; 6.49 m @ 1.33 gpt Au, 21 gpt Ag, 0.17% Cu, 0.4% Pb, 2.1% Zn; 6.13 m @ 0.32 gpt Au, 214 gpt Ag, 0.76% Cu, 4.3% Pb, 3.0% Zn; 4.87 m @ 0.09 gpt Au, 47 gpt Ag, 0.47% Cu, 1.1% Pb, 7.2% Zn; 2.49 m @ 0.96 gpt Au, 27 gpt Ag, 1.01% Cu, 1.1% Pb, 9.7% Zn; 3.46 m @ 0.24 gpt Au, 198 gpt Ag, 0.74% Cu, 0.6% Pb, 4.9% Zn; 6.33 m @ 0.14 gpt Au, 60 gpt Ag, 0.62% Cu, 0.1% Pb, 2.2% Zn; 2.62 m @ 1.93 gpt Au, 73 gpt Ag, 0.81% Cu, 1.6% Pb, 10.4% Zn; 6.56 m @ 1.06 gpt Au, 27 gpt Ag, 0.22% Cu, 0.7% Pb, 2.1% Zn; 6.49 m @ 0.11 gpt Au, 78 gpt Ag, 0.64% Cu, 1.5% Pb, 2.9% Zn. “Five underground diamond drill rigs are currently operating … more than 100 drill holes and 25,000 meters of core has been drilled year-to date in 2023…. These drill results will be incorporated into a 2023 resource estimate update”.
Alamos Gold Inc. released drilling results from the Puerto del Aire deposit and the Capulin target at its Mulatos property in Sonora. Puerto del Aire is a high-grade underground deposit adjacent to the Mulatos pit, not included in the mineral resources, and the Capulin target is four km east of the Mulatos pit. Highlighted true width core intervals comprise 7.05 m @ 41.46 gpt Au; 9.50 m @ 18.32 gpt Au; 9.45 m @ 13.62 gpt Au; 1.20 m @ 85.80 gpt Au; 17.60 m @ 5.58 gpt Au; 18.70 @3.30 gpt Au; 6.0 m @ 10.42 gpt Au; 15.10 m @ 3.86 gpt Au; 11.50 m @ 3.21 gpt Au; 9.45 m @ 3.84 gpt Au in Puerto del Aire, and core length intercepts of 120.85 m @ 2.73 gpt Au (including 29.05 m @ 9.31 gpt Au); 6.0 m @ 3.65 gpt Au; 8.80 m @ 0.99 gpt Au in the Capulin target. Three drill rigs are currently working on the Capulin target, two defining the limits of known mineralization and one testing along the 2 km long Capulin fault. The 2023 exploration budget has been increased to 24.5 M, including 50,000 m of drilling at Puerto del Aire and 24,000 m of drilling on several high priority targets including Refugio, Halcon West, Carricito, Bajios, and Cerro Pelon West.
Sierra Madre Gold and Silver Ltd. Updated on its exploration activities at the past producing La Guitarra mine in Estado de México. In February 2023 the company started a 2,000-scale geologic mapping program, delineating to date nearly 53 km of mineralized quartz veins, breccias and stockwork zones hosted in metasediments and andesites, with hundreds of old shafts, cross cuts, adits, and prospect pits having been located. “ The La Guitarra Mine is a permitted, past-producing underground mine which includes a 500 t/d processing facility that operated until mid-2018”.
Avino Silver & Gold Mines Ltd. released the results from four holes drilled on the deepest part of the Avino mine, in Durango. The known depth extent of the mineralization is of at least 750 m vertically, which is assessed as unusual for Mexican epithermal deposits. Highlighted true width intercepts comprise 44.40 m @ 0.21 gpt Au, 31 gpt Ag, 0.70% Cu (including 9.85 m @ 0.58 gpt Au, 42 gpt Ag, 1.10% Cu); 27.15 m @ 0.07 gpt Au, 36 gpt Ag, 0.39% Cu; 13.20 m @ 0.09 gpt Au, 59 gpt Ag, 0.47% Cu; 6.60 m @ 0.12 gpt Au, 27 gpt Ag, 0.92% Cu. “Four holes totalling 2,040 meters, were drilled below Level 17 in this drill campaign … The persistence of silver and copper grade continuity from surface down a plunge distance of over 1,100 metres with increasing copper grades supports the possibility of a deeper mineralized system which may be linked to a porphyry centre”.
Orex Minerals Inc. announced that hyperspectral alteration studies are now underway on the Coneto project in Durango, by JV partner Fresnillo PLC. “Both direct Corescan of selected drill core from silver and gold mineralized zones, plus a SpecTIR Survey covering district scale mapping, will be conducted. These methods aid in mineral identification through Short-Wave Infra-Red (SWIR) and Visible Near Infra-Red (VNIR) analysis”. The 4,800 hectares project displays low to intermediate sulfidation Au-Ag epithermal mineralization, with 38,613 m of drilling in 106 diamond holes.
Golden Minerals Co. filed an updated preliminary economic assessment (PEA) for the Velardeña property in Durango.
ON DEALS AND CORPORATE ISSUES
Golden Tag Resources Ltd. intends (subject to regulatory and shareholders approval) to change the company name from Golden Tag Resources Ltd. to Silver Storm Mining Inc. “(La Parrila, Durango).
Almaden Minerals Ltd. reported that the Mexican Federal Administrative Court granted a provisional injunction to Almaden “relating to the submission issued by Mexico’s Ministry of the Economy (“Economia”) to the district court (the “District Court”) which is overseeing the implementation of the February 2022 decision of Mexico’s Supreme Court (“SCJN”) requiring indigenous consultations prior to the granting of mineral titles to the Ixtaca project ……. It is expected that the Court will decide on the grant of a permanent injunction within the coming weeks, which if received would continue in effect until the Court has ruled on the revocation of the Economia Submission” (Ixtaca, Puebla).
Argonaut Gold Inc. reached an agreement with four local Ejidos to operate for three more years in the El Castillo and San Agustín properties in Durango.
ON SOCIAL RESPONSIBILITY
No relevant news.
On the image below: Silicified structure ridge on a project in the Sonoran Desert. Picture by Jorge Cirett.
During the 35th week of the year (August 27th to September 3rd, 2023), 21 companies working in Mexico posted news releases. Five companies reported on quarterly or half year 2023 results. Five companies informed on the opening or closing of private placements, one on the payment of dividends and one more on the extension of a credit facility. One company announced results of a PEA on its property and one other is working to process a tailings polymetallic resource. A company reported high-grade drilling results from its property and one other updated on exploration activities. One company informed on its intention to acquire a porphyry copper project in Sonora, while one other updated on projects in several countries and its plans for Mexico. One royalty company informed on the indirect acquisition of an NSR from a mine in Mexico. ON MEXICO ISSUES, Xótchil Gálvez, pointed that the Mining Fund should return to mining communities. ON EXPLORATION, no relevant news. ON MINING, Impact Silver, Bear Creek Mining and Minera Alamos reported financial results for Q2 2023, and Mundoro reported first half 2023 results. ON FINANCING, Aztec Minerals (C$911.6 K), Colibri Resource, Regency Silver (C$1.5 M), Sonoro Gold (C$259.2 K) and Commander Resources ($ 346 K) informed on the opening or closing of financing rounds. Orla Mining extended its credit facility to up to $200 M and four years. Alamos Gold declared a quarterly dividend. ON RESOURCES AND DEVELOPMENT, Sonoro Gold announced a positive PEA on Cerro Caliche, Sonora. Luca Mining informed on evaluation plans to reprocess tailings at Campo Morado, Guerrero. Bear Creek Mining provided underground drilling results from Mercedes, in Sonora. Discovery Silver submitted the environmental impact assessment (MIA) for Cordero, in Chihuahua. Mammoth Resources provided an update on exploration activities at Tenoriba, in Chihuahua. ON DEALS AND CORPORATE ISSUES, Southern Empire Resources entered into an agreement with Cuprum Mining, upon which Southern can acquire 100% interest in the Suaqui Verde porphyry copper project in Sonora. Excellon Resources provided an update on its projects in different countries, including Mexico. Gold Royalty completed the acquisition of a 1.0% NSR on portions of the Cozamin mine production in Zacatecas. ON SOCIAL RESPONSIBILITY, no relevant news.
ON MEXICO ISSUES
Xóchitl Gálvez, opposition senator and likely to turn into a strong presidential candidate, points that the Mining Fund should return to mining communities. The fund was created for mining to contribute to the development of the communities where the work is realized, but was funneled into a broader basket to source pensions and scholarships with electoral aims by the current president.
No Relevant News.
Impact Silver Corp. announced financial results for the second quarter 2023, reporting revenue of $5.5 M. The average mill feed at Zacualpan, in Estado de Mexico, was 163 gpt Ag, where 35.7 K tonnes were processed to produce 155.7 K Oz Ag. During the quarter Impact closed the acquisition of the Plomosas mine in Chihuahua, where a major rehabilitation program was initiated. The company completed a $9.0 M non-brokered private placement, maintains a cash balance of $13.3 M and no long-term debt.
Orogen Royalties Inc. reported financial results for the second quarter of 2023, including some figures on its royalties from Mexican operations. The company holds a 2.0% net smelter return (NSR) royalty on the production of First Majestic’s Ermitaño mine in Sonora. Orogen’s share of production on the quarter was $1.18 M consisting on 435 Oz AuEq, resulting from the process of 213.9 K tonnes @ 3.12 gpt Au, 39 gpt Ag, which produced 20,073 Oz Au, 142 K Oz Ag.
Bear Creek Mining Corp. reported its financial results for Q2 2023. During the period, 121.5 K tonnes were mined at its Mercedes mine in Sonora, 125.1 K tonnes were processed @ 2.42 gpt Au, recovering 94.53% Au to produce 9,212 Oz Au, 39,827 Oz Ag, or 10,132 Oz AuEq at cash cost $1,337 per Oz AuEq and an AISC of $1,646 per Oz AuEq. “The Mercedes mine has been inconsistent in achieving the anticipated gold grades projected in the mine plans and geological models the Company inherited upon its acquisition of Mercedes in April 2022”. Mining costs have declined by 23% in recent months and are expected to continue to reduce in the coming months due to changes in mining methods. Higher grades are to be mined from areas close to current production.
Minera Alamos Inc. provided an operation update for Q2 2023 and some guidance on its operations on Q3. Strip ratios were maintained below 2:1 waste vs mineralized material during mining operations, with 25% of material averaging 1.06 gpt Au being crushed and 75% of material averaging 0.43 gpt Au being sent directly to the leach pads, for an average grade of 0.59 gpt Au in the leach pads. The company expects that the precipitation levels in 2023 will allow more normal mining and production plans. Overall pad capacity is to triple if constructive communications with SEMARNAT (Environmental regulator) are fruitful. A maiden resource estimate is expected in Q3, covering the primary mineralized zones surrounding the Nicho operations. Alamos had cash and cash equivalents of $8.27 M by the end of the period. Subsequent to quarter’s end, $2.57 M ($33.2 M pesos) of VAT were returned to the company by the Mexican revenue service (SAT).
Mundoro Capital Inc. reported financial results for the first half of 2023. In H1 2023 the company generated $1.46 M in fees and payments. At the end of the period Mundoro held $8.4 M in cash and cash equivalents (Camargo, Chihuahua).
Aztec Minerals Corp. closed the first tranche of its non-brokered private placement for gross proceeds of CAD$911.6 K. “Due to investor interest in the private placement, Aztec intends to increase the financing from the original stated amount of up to CAD$1 million to up to CAD$1.2 million” (Cervantes, Sonora).
Orla Mining Ltd. amended its existing US$150 M credit facility with the Bank of Nova Scotia, Bank of Montreal and Canadian Imperial Bank of Commerce. The facility stays at US$150 M, with the ability to increase to US$200 M, with a 4-year term (increasing it by two years) and an interest rate will be based on the term SOFR rate, plus an applicable margin ranging from 2.50% to 3.75% based on the company’s leverage ratio at the end of each fiscal quarter. “The Amended Credit Facility is payable in full at maturity and removes quarterly mandatory repayments required under the previous term facility” (Camino Rojo Oxides, Zacatecas).
Colibri Resource Corp. announced an extension to complete its previously announced non-brokered private placement by September 13, 2023. “The Company is offering up to 1,000 units, each unit being comprised of: (i) a US$1,000 principal amount of 10% unsecured convertible debenture (a “Debenture”) with a maturity date (“Maturity Date”) of 2 years from the date of issuance; and (ii) 5,416 common share purchase warrants of the Company …” (Evelyn, Sonora).
Regency Silver Corp. will be present at the 2023 Precious Metals Summit in Beaver Creek, Colorado. Regency has arranged a non-brokered private placement of up to CAD$1.5 M in gross proceeds (Dios Padre, Sonora).
Alamos Gold Inc. declared a quarterly dividend of US$0.025 per common share (Mulatos, Sonora).
Commander Resources Ltd. closed the non-brokered private placement announced on August 3, 2023, for total gross proceeds of $346 K (Pedro, Durango).
Sonoro Gold Corp. closed the final tranche of its previously announced non-brokered private placement for additional gross proceeds of C$259.2 K, accruing a total of C$2.26 M (Cerro Caliche, Sonora).
ON RESOURCES AND DEVELOPMENT
Sonoro Gold Corp. announced a positive preliminary economic assessment (PEA) for its Cerro Caliche project in Sonora. The scope is for nine years life of mine (LOM) 33,000 Oz AuEq per year operation to obtain 297,575 Oz AuEq on recoveries of 72% Au, 27% Ag, with a pre-Tax net present value (NPV) of US$71.4 M, a pre-Tax internal rate of return (IRR) of 59% and after-Tax NPV (at 5%) of US$47.7 M with an IRR of 45%. An initial CAPEX cost of US$15.5 M and sustaining capital of US$15.5 M are envisaged, to produce at cash cost US$1,295 per Oz AuEq and an AISC of US$1,395 per Oz AuEq with a payback period of 2.9 years.
Luca Mining Corp. announced the signing of a memorandum of understanding with EnviroGold Global Ltd. to process the tailings at Luca’s Campo Morado Mine in Guerrero. The scope of the project is to evaluate the reprocessing of 3.29 M tonnes @ 1.32% Zn, 0.3% Cu, 0.49% Pb, 1.57 gpt Au, 94 gpt Ag, and produce a PEA for the project. On a 2021 initial testwork with EnviroGold’s, a gold recovery of 60% was achieved. The aim of the project is to increase this gold recovery rate to levels reached by EnviroGold on the Hellyer project in Australia (also a volcanogenic massive sulfide deposit, as Campo Morado), where it achieved recoveries of 90% Au, 90% Ag by leach, and 91% Cu and 82% Zn reported to a pregnant solution suitable for subsequent recovery.
Bear Creek Mining Corp. provided results from underground definition and delineation drilling at its Mercedes mine in Sonora. “The Company has focused drilling on the Marianas, Rey de Oro, Diluvio and Lupita deposits, all of which are associated with near-term production; however, the results also hold significant implications for exploration upside”. Highlighted true width intercepts comprise 1.0 m @ 47.90 gpt Au, 39 gpt Ag; 5.2 m @ 62.59 gpt Au, 93 gpt Ag; 4.3 m @ 7.55 gpt Au, 28 gpt Ag; 4.4 m @ 3.53 gpt Au, 10 gpt Ag; 2.1 m @ 18.41 gpt Au, 11 gpt Ag in the Marianas zone, 1.4 m @ 21.00 gpt Au, 11 gpt Ag; 4.9 m @ 3.52 gpt Au, 53 gpt Ag; 0.9 m @ 29.30 gpt Au, 63 gpt Ag; 4.2 m @ 4.56 gpt Au, 71 gpt Ag in the Rey de Oro Zone, 0.8 m @ 22.4 gpt Au, 127 gpt Ag in the Diluvio zone and 3.4 m @ 5.46 gpt Au, 95 gpt Ag in the Lupita zone. Highlighted core-length intervals from the Diluvio zone comprise 6.7 m @ 3.24 gpt Au, 63 gpt Ag; 14.3 m @ 4.11 gpt Au, 54 gpt Ag; 6.1 m @ 3.54 gpt Au, 63 gpt Ag; 6.5 m @ 5.51 gpt Au, 45 gpt Ag; 5.1 m @ 7.11 gpt Au, 78 gpt Ag; 1.5 m @ 9.23 gpt Au, 34 gpt Ag.
Discovery Silver Corp. submitted for evaluation the environmental impact assessment (Manifestación de Impacto Ambiental, or MIA) for its Cordero project in Chihuahua. “The MIA is one of the principal permits required for the development of Cordero and encapsulates extensive social and environmental work programs completed by the Company’s team in Mexico since 2020 in parallel with multiple reviews by third-party consultants.”
Mammoth Resources Corp. provided an update on ongoing exploration activities at its Tenoriba property in Chihuahua. The objective is to evaluate how to produce a resource estimation and define the processes through which the precious metals can be recovered. These activities include: (1) metallurgical testing of oxide material from the 1.5 km by 0.5 km Carneritos area. Preliminary metallurgical tests have already been performed on material from the Masuparia area; (2) analysis of all geological information, including drill data, by an independent mineral resource modelling expert aiming for the distribution of drill holes required to produce a maiden NI 43-101 mineral resource; and (3) defining future drill hole locations upon which to achieve this mineral resource.
ON DEALS AND CORPORATE ISSUES
Southern Empire Resources Corp. entered into an agreement with Cuprum Mining Corp. to acquire up to 100% in the share capital of Cuprum, and thereby on the Suaqui Verde copper project in Sonora. Southern can acquire 10% of Cuprum by paying C$500 K within 90 days and issuing 7.5 M shares of Southern to Cuprum shareholders. Another 10% can be acquired by paying C$250 K to Cuprum, issuing 7.5 M shares and incurring in C$750 K on exploration expenditures on or before 15 months of closing. An additional 10% can be acquired by paying $500 K and incurring in additional C$750 K in exploration on or before 30 months from closing. Additional 20% can be acquired by Southern by paying C$500 K and incurring additional C$750 K within 45 months of closing. Southern Empire can acquire an additional 50% in Cuprum by paying C$750 K and incurring in additional C$1 M (total of C$3.25 M) on or before 60 months of closing. A 2% NSR “may be payable” subsequent to commercial production. The project encompasses 1,952 hectares with oxide and secondarily enriched copper sulfide mineralization on a porphyry copper system. A resource defined with 106 historical RC and diamond holes contains 51.2 M tonnes @ 0.31% Cu in the indicated category.
Excellon Resources Inc. provided an update on its projects in USA, Germany and Mexico. “As the Platosa Mine was placed on care and maintenance in earlyQ4 2022, the Company is assessing its strategic options, including the potential sale of select properties or complete divestiture of the Mexico operations. The Company will provide further updates on the Mexico operations as necessary.” (Platosa, Durango).
Silver Tiger Metals Inc. announced the appointment of Francisco Albelais as Vice-President of Operations and Mr. Charles Spath as Vice-President of Technical Services. (El Tigre, Sonora).
Gold Royalty Corp. has completed the indirect acquisition of a 1.0% net smelter return (NSR) royalty on portions of the Cozamin Cu-Ag mine in Zacatecas, from Endeavour Silver Corp. Pursuant to the transaction, Gold Royalty indirectly acquired the royalty for US$7.5 M in cash consideration.
ON SOCIAL RESPONSIBILITY
No relevant news.
On the image below: Silicified structure ridge on a project in the Sonoran Desert. Picture by Jorge Cirett.
By Miguel A Heredia During the 34th week of the year (August 21st to August 27th, 2023), at least 20 press releases were announced by companies working in Mexico, and 4 news published by the media, with eleven reporting resources and development of their properties, five commenting on Mexican issues, four disclosing deals and corporate issues, one announcing financing issues, one communicating production and financial results, one informing on exploration results, and one discussing social issues. ON MEXICO ISSUES, The United States government requested the installation of the first United States – Mexico – Canada Agreement (USMCA or T-MEC) labor panel against Grupo Mexico. USMCA panel analyzes whether there was a violation in the case of the San Martin Mine, Zacatecas of Grupo Mexico. The president of the Business Coordinating Council (CCE), Francisco Cervantes pronounced on the request for a labor panel of the T-MEC in a mine of Grupo México. Grupo Mexico sees an impact beyond its San Martin Mine. GoGold, Sierra Metals, Vizsla and Guanajuato Silver reported the best drilling intercepts in Mexico on the fourth week of August, 2023. ON EXPLORATION, Prismo provided an update of its ongoing drilling program at its Palos Verdes project in Sinaloa. ON MINING, Guanajuato Silver reported Q2, 2023 production and financial results from their mine operations in Mexico. ON FINANCING, Golden Minerals received New York Stock Exchange (NYSE) acceptance of plan to regain listing compliance (Rodeo project, Durango). ON RESOURCES AND DEVELOPMENT, Tocvan and its JV partner Colibri announced results from a bulk sample collected at Pilar project in Sonora. GoGold released additional drilling results from the Main Area at Los Ricos South project, Jalisco. Golden Tag filed NI43-101 technical report on Mineral Resources for its La Parrilla Mine Complex, Durango. Vizsla reported results from 11 drillholes collared on the Napoleon Vein at its flagship Panuco project in Sinaloa. Golden Minerals completed an updated technical report as a Preliminary Economic Assessment (PEA) for its Velardeña properties in Durango. Guanajuato Silver provided drill results from its Topia Mine in Durango. Sierra Metals announced a mineral resource expansion at its Bolivar Mine in Chihuahua. Silver Tiger reported results from initial scoping-level metallurgical test from its high grade Ag-Au El Tigre project, Sonora. Impact Silver provided a construction update at its Plomosas mine in Chihuahua. Pan American Silver announced mineral resource and mineral reserves as at June 30, 2023 at their Mexican mine operations and advanced mining projects. ON DEALS AND CORPORATE ISSUES, McEwen and Sierra Metals announced the appointment of new members to their Board of Directors. Discovery announced key appointments that strengthen the company’s Board of Directors, and also the permitting and technical teams (Cordero project, Chihuahua). Aloro announced that it has cancelled the option agreement with Cuesta del Cobre S de R.L. de C.V., to purchase the Quitovac Mine project in Sonora. ON SOCIAL RESPONSIBILITY, Orla Mining released its inaugural sustainability report (Camino Rojo, Zacatecas).
ON MEXICO ISSUES
The United States government requested the installation of the first United States – Mexico – Canada Agreement (USMCA or T-MEC) labor panel under the Rapid Response Labor Mechanism (MLRR), for disagreeing with the Mexican government on the complaint against the San Martin Mine, of Grupo México, located in Zacatecas, who is accused of having impeded free unionization and authentic collective contracting. The Mexican government, for its part, responded that it would not review the case under the T-MEC mechanisms, arguing that the conflict dates back to 2007 (since the T-MEC entered into force in 2020) and that there is no evidence of that the mine exports to the United States, so it would not be a facility covered by the treaty. Grupo Mexico denounced that the union leader Napoleón Gómez Urrutia, presented the complaint that gave rise to this process with two objectives: “to have a new pretext to ignore the deﬁnitive award that condemns him to pay USD $55M plus accrued yields from 2005 to former mining workers and generate conﬂicts to press for a new political position that gives him jurisdiction / political privileges (“fuero politico”). After the lifting of the strike, in 2018, San Martin has received investments of more than USD $105M, has produced more than 1.25M tonnes of mineral each year and has generated about 1,300 jobs.
USMCA panel analyzes whether there was a violation in the case of the San Martin Mine, Zacatecas of Grupo Mexico. Given these facts, Grupo México indicated that it is essential for the San Martin Mine to put an end to a conﬂict that has harmed workers and their families for the last 15 years. Grupo México assured that the conflict in the San Martin Mine is not the product of the disagreement of the workers, but of the senator for Morena Napoleón Gómez Urrutia, who presented the complaint that gave rise to this process. “Urrutia sought to have a new pretext to ignore the final award that condemns him to pay USD $55M plus accrued income since 2005 to former mining workers, as well as generate conflicts to press for a new political position.
The president of the Business Coordinating Council (CCE), Francisco Cervantes pronounced on the request for a labor panel of the T-MEC in a mine of Grupo México. At the request of the United States government for the first panel of the Rapid Response Labor Mechanism under the Treaty between Mexico, the United States, and Canada at the San Martin mine of Grupo México, in Sombrerete, Zacatecas, Francisco Cervantes Díaz, president of the CCE, commented that it is a panel that has already lost a labor part here, that is why they are entering the issue in the United States and the resolution must be waited for. The Ministry of Economy indicated that Mexico rejected the request because this conflict dates from July 2007, and the law is not retroactive, since the “T-MEC would not be applicable to the facts related to this controversy.”
Grupo Mexico sees an impact beyond its San Martin Mine. The Mexican government will have the burden of proof to demonstrate in the T-MEC instance that there were no violations of union freedom in the San Martin Mine. If the case is lost, the sanctions could affect other company exports, beyond those originating from the facility in conflict, envisions the Grupo Mexico´s lawyer. It is worth remembering that the United States filed a labor complaint with the Mexican government accusing that, in the San Martin Mine, belonging to Grupo México, the rights of workers were violated because a strike was terminated by establishing a collective contract with another union, which would mean a violation of workers’ rights. Mexico maintained that this fact was prior to the entry into force of the trade agreement with the United States and Canada, and refused to carry out the investigation to determine a possible Remediation Plan for the company.
GoGold Resources Inc., Sierra Metals Inc., Vizsla Silver Corporation, and Guanajuato Silver Company Ltd., reported the best drilling intercepts in Mexico on the fourth week of August, 2023. Details are shown in the table below:
Prismo Metals Inc., provided an update of its ongoing drilling program at its Palos Verdes project in Sinaloa. The company has drilled 2,620m in the current program and completed thirteen holes with one hole in progress, PV-23-32. One additional hole is contemplated after completing hole PV-23-32 as part of the original drill program which began in May 2023. “This will be followed by the previously announced expansion of the drill program, with holes to be drilled from Vizsla Silver Corp. concessions adjacent to the Palos Verdes concession. These holes will target the Palos Verdes vein at depth. This follows a recommendation presented by the Panuco Joint Technical Committee to drill approximately 3,600 meters in ten holes to be completed in two phases”.
Guanajuato Silver Company Ltd., reported Q2, 2023 production and financial results from their mine operations in Mexico (El Cubo, San Ignacio, and Valenciana in Guanajuato, and Topia in Durango) All amounts are expressed in US dollars. The company mined 166,671 tonnes and milled 163,793 tonnes with metallurgical recoveries of 84.9% Ag and 83.1% Au, to produce 477.6K Oz Ag, 4,719 Oz Au, 875.8K Lb Pb, and 897.2K Lb Zn (941.3K Oz AgEq). It sold 462.9K Oz Ag, 4,427 Oz Au, 830.6K Lb Pb, and 871.3K Lb Zn (901.5K Oz AgEq) at realized prices of $24.33/ Oz Ag, $1,988.05/Oz Au, $0.97/Lb Pb, and $1.14/Lb Zn. Guanajuato Silver reported revenue of $16.8M; cost of sales of $19.2M; mine operating loss of ($2.4M); mine operating cash flow before taxes of $394.3K; net loss of ($8.6M); EBIDTA of ($4.6M); adjusted EBIDTA of ($3.41M); and working capital of ($17.8M).
Golden Minerals Company received New York Stock Exchange (NYSE) acceptance of plan to regain listing compliance. The listing of the Company’s common stock will continue pursuant to an extension during the plan period, during which time the Company will be subject to periodic review to determine whether it is making progress consistent with the accepted plan (Rodeo project, Durango).
ON RESOURCES AND DEVELOPMENT
Tocvan Ventures Corp., and its JV partner Colibri Resource Corporation, announced results from a bulk sample collected at Pilar project in Sonora. Highlights of the recovery results for heap leaching match regional operating mine – head grade exceeds expectations include 62% recovery of gold achieved over 46-day leaching period; report confirms with increase in irrigation flowrate, higher recovery can be achieved; head grade calculated at 1.9 g/t Au and 7 g/t Ag, extracted grade calculated at 1.2 g/t Au and 3 g/t Ag; bulk sample only included coarse fraction of material (+3/4”to +1.8”); and fine fraction (-1/8”) indicated rapid recovery with agitated leach. Highlights of recap of fine fractions and gravity recovery results include 80%recovery of gold and 94% recovery of silver after rapid 24-hour retention time in agitated bottle roll test; and 95 to 99% recovery of gold and 73 to 97% recovery for silver in gravity recovery with agitated leach results of five composite samples. It includes the recovery of 99% Au and 73% Ag from drill core composite at 120m depth.
GoGold Resources Inc., released additional drilling results from the Main Area at Los Ricos South project, Jalisco. Drilling highlights include hole LRGG-23-316 with 1.27 g/t Au and 396 g/t Ag (6.54 g/t AuEq or 491 g(/t AgEq) over 27.3m, including 4.43 g/t Au and 1,338 g/t Ag (22.26 g/t AuEq or 1.665 g/t AgEq) over 7.6m, including 11.80 g/t Au and 7,230 g/t Ag (108.20 g/t AuEq or 8,115 g/t AgEq) over 0.9m; hole LRGG-23-304 with 1.82 g/t Au and 181 g/t Ag (4.24 g/t AuEq or 318 g/t AgEq) over 10m, including 4.34 g/t Au and 633 g/t Ag (12.78 g/t AuEq or 958 g/t AgEq) over 1.8m; hole LRGG-23-306 with 4.99 g/t Au and 605 g/t Ag (13.05 g/t AuEq or 979 g/t AgEq) over 11.7m, including 30.5 g/t Au and 3,550 g/t Ag (77.83 g/t AuEq or 5,837 g/t AgEq) over 1.5m; hole LRGG-23-309 with 1.5 g/t Au and 89 g/t Ag (2.69 g/t AuEq or 202 g/t AgEq) over 18.6m, including 12.05 g/t Au and 144 g/t Ag (13.97 g/t AuEq or 1.048 g/t AgEq) over 0.6m; and hole LRGG-23-313 with 3.23 g/t Au and 235 g/t Ag (6.36 g/t AuEq or 477 g/t AgEq) over 9.2m, including 4.64 g/t Au and 461 g/t Ag (10.79 g/t AuEq or 809 g/t AgEq) over 3.2m. The Main Area drilling campaign’s purposes is to better define the very high-grade portions of the current deposit that may be amenable to bulk underground mining.
Golden Tag Resources Ltd., filed NI43-101 technical report on Mineral Resources for its La Parrilla Mine Complex, Durango, with an effective date of May 31, 2023.
Vizsla Silver Corp., reported results from 11 drillholes collared on the Napoleon Vein at its flagship Panuco project in Sinaloa. Drilling highlights (true widths) include hole NP-23-380 with 111 g/t Ag, 0.64 g/t Au, 0.01% Pb, and 0.01% Zn (147 g/t AgEq) over 5.4m, plus 561 g/t Ag, 1.08 g/t Au, 1.3% Pb, and 6.2% Zn (849 g/t AgEq) over 1.35m, plus 346 g/t Ag, 2.21 g/t Au, 0.8% Pb, and 4.3% Zn (650 g/t AgEq) over 0.4m; hole NP-23-301 with 64 g/t Ag, 0.72 g/t Au, 0.8% Pb, and 0.8% Zn (160 g/t AgEq) over 1m, plus 908 g/t Ag, 7.37 g/t Au, 1.6% Pb, and 4.9% Zn (1,568 g/t AgEq) over 1.9m, including 1,500 g/t Ag, 8.96 g/t Au, 2% Pb, and 4% Zn (2,205 g/t AgEq) over 0.65m; hole NP-23-392 with 527 g/t Ag, 3.78 g/t Au, 2.1% Pb, and 5% Zn (989 g/t AgEq) over 2.5m, including 1,500 g/t Ag, 9.97 g/t Au, 5.2% Pb, and 6.7% Zn (2,465 g/t AgEq) over 0.69m, plus 258 g/t Ag, 1.62 g/t Au, 1.9% Pb, and 15.5% Zn (967 g/t AgEq) over 0.95m, plus 40 g/t Ag, 1.96 g/t Au, 0.6% Pb, and 11.4% Zn (602 g/t AgEq) over 1.55m. “The new drill results are centered on the western portion of the district and are part of Vizsla’s ongoing 90,000m resource infill and expansion/discovery-focused drill program. Infill and step-out (expansionary) drilling completed to date has led to an improved understanding of the mineralization controls along the Napoleon vein corridor”.
Golden Minerals Company completed an updated technical report as a Preliminary Economic Assessment (PEA) for its Velardeña properties in Durango. Mineral Resource Estimate (sulphides) as at June 1, 2023 considers measured + indicated resources of 665,900 tons with grades of 402 g/t Ag, 5.54 g/t Au, 1.7% Pb, and 2.1% Zn for a total of 8.6M Oz Ag, 118.5K Oz Au, 24.77M Lb Pb, and 30.48M Lb Zn contained, and inferred resources of 1,059,900 tonnes of 413 g/t Ag, 5.1 g/t Au, 1.8% Pb, and 2.3% Zn for a total of 14.06M Oz Ag, 173.7K Oz Au, 42.3M Lb Pb, and 52.7M Lb Zn contained. Highlights of the economic analysis include a mine life of 10.5 years; Pre-Tax NPV (8%) of USD $136.7M and IRR of 1,320.2%; After-Tax NPV (8%) of USD $87.6M and IRR of 860.7%; and a payback of less than one year.
Guanajuato Silver Company Ltd., provided drill results from its Topia Mine in Durango. Drilling highlights reported in true widths include hole UT23-468 (Argentina Vein) with 0.15 g/t Au, 202 g/t Ag, 2.3% Pb, and 0.8% Zn (317 g/t AgEq) over 0.36m; hole UT23-470 (Argentina Vein) with 0.09 g/t Au, 132 g/t Ag, 0.2% Pb, and 1.1% Zn (182 g/t AgEq) over 0.35m; hole UT23-471 (Argentina Vein) with 0.1 g/t Au, 547 g/t Ag, 1.1% Pb, and 1.8% Zn (644 g/t AgEq) over 0.80m; hole UT23-474 (Santa Cruz Vein) with 0.06 g/t Au, 490 g/t Ag, 0.7% Pb, and 0.2% Zn (521 g/t AgEq) over 0.18m; and hole UT23-476 (san Gregorio Vein) with 0.16 g/t Au, 1,180 g/t Ag, 5.1% Pb, and 23.9% Zn (2,150 g/t AgEq) over 0.15m, plus 0.19 g/t Au, 161 g/t Ag, 0.3% Pb, and 10.6% Zn (551 g/t AgEq) over 1.91m, plus 0.33 g/t Au, 124 g/t Ag, 0.4% Pb, and 7.2% Zn (409 g/t AgEq) over 0.25m. “Drilling of the Argentina and Santa Cruz veins is being done from the new El Condor Tunnel with the objective of defining the trend of mineralization to the west of the current intercepts. The Rosario and San Gregorio veins, located in the southeastern part of the district, have been drilled from the Rosario ramp; these veins are separated by approximately 350 metres, and the objective there is to follow the trend of mineralization to the west”.
Sierra Metals Inc., announced a mineral resource expansion at its Bolivar Mine in Chihuahua. The company reported additional 15.5M Lb CuEq in measured and indicated mineral resources hosted by the Dulce structure at its Bolivar mine in Chihuahua, Mexico. Mineral Resource at Dulce Zone as at June 30, 2023 include measured + indicated resources of 1,236,000 tonnes with grades of 0.83% Cu, 0.47 g/t Au, and 26 g/t Ag (1.24% CuEq) for a total of 22.7M Lb Cu, 18.7K Oz Au, and 1.03M Oz Ag (33.8M Lb CuEq) contained, and inferred resources of 431K tonnes with grades of 0.67% Cu, 0.57 g/t Au, and 25 g/t Ag (1.12% CuEq) for a total of 6.4M Lb Cu, 7.9K Oz Au, and 345K Oz Ag (10.6M Lb CuEq) contained.
Silver Tiger Metals Inc., reported results from initial scoping-level metallurgical test from its high grade Ag-Au El Tigre project, Sonora. Preliminary metallurgical work demonstrates excellent recoveries of silver, gold, copper, zinc and lead in the Sulphide and Black Shale Zones with silver equivalent recoveries of 95.7% and 98.1%, respectively. Preliminary rougher flotation tests of the Black Shale Zone recovered 91.1% copper, 98.2% lead, 98.8% zinc, 91.9% gold, and 98.4% silver (Overall Silver Equivalent Recovery – 98.1%); preliminary rougher flotation tests of the Sulphide Zone recovered 94.2% copper, 95.3% lead, 97.6% zinc, 79.6% gold, and 96.0% silver (Overall Silver Equivalent Recovery – 95.7%); surface Stockwork Zone column test extractions recovered – 83.1% Gold, 64.3% Silver at 3/8-in crush size with no requirement for agglomeration indicated in these tests (Overall Silver Equivalent Recovery – 78.1%; and also notable is the low cyanide consumption of 0.68 kg per tonne and lime consumption of 2.33 kg per tonne. “Previous drilling of the Surface Stockwork Zone has indicated a mineralized zone in excess of 100 meters true width. With high recoveries of 78.1% silver equivalency in column testing, simulating a heap leaching process, the Corporation sees the potential for an open pit low-cost heap leach process. This open pit heap leach process will be defined as part of the upcoming PEA”.
Impact Silver Corp., provided a construction update at its Plomosas mine in Chihuahua. “All necessary components of the mill have arrived on site or have been refurbished with assembly currently in the final stages. Testing and modification of the plant is expected to start in late summer, with ramp up to design capacity of nearly 200 tpd expected over the coming months. Construction is now approximately 85% complete. The Company has applied for the expansion of the current tailings pond which is expected to add at least an additional two years capacity. Meanwhile, an additional tailings pond is in the planning stages to accommodate years of future production and growth. Refurbishments to ventilation, electrical and lighting systems are ongoing as activity increases underground. Mining has begun and is expected to ramp up as the Company deploys additional equipment to the mine including scoop trams and underground trucks. Underground drilling to better define and expand resources has begun and drill permits for surface brownfield and green field exploration targets have been received. The exploration team has initiated its first phase of the 2023-2024 mine plan. This includes extraction of high-grade material in line with previous grades in excess of 13% Zn. There are currently 70 Company employees on site and another 25 contract workers. The Company is fortunate to have inherited a strong workforce after the acquisition closed and is adding positions in specific areas centred around engineering, exploration and day-to-day operations”.
Pan American Silver Corp., announced mineral resource and mineral reserves as at June 30, 2023 at their Mexican mine operations and advanced mining projects (Mineral resources are reported exclusive of mineral reserves). At La Colorada, Zacatecas, the company reported measured resources of 0.7M with grades of 153 g/t Ag and 0.13 g/t Au for a total of 3.6M Oz Ag and 3K Oz Au contained; indicated resources of 2.5M tonnes with grades of 182 g/t Ag and 0.19 g/t Au for a total of 14.6M Oz Ag and 15K Oz Au contained; and inferred resources of 14.7M tonnes with grades of 174 g/t Ag and 0.2 g/t Au for a total of 82.2M Oz Ag and 43K Oz Au contained. At La Colorada Skarn, Zacatecas, it reported indicated resources of 95.9M tonnes with a grade of 31 g/t Ag for a total of 94.4M Oz Ag contained and inferred resources of 147.8M tonnes with a grade of 28 g/t Ag for a total of 132.9M Oz Ag contained. At Dolores, Chihuahua, Pan American reported measured resources of 5.5M with grades of 23 g/t Ag and 0.33 g/t Au for a total of 4M Oz Ag and 57.7K Oz Au contained; indicated resources of 0.7M tonnes with grades of 70 g/t Ag and 1.35 g/t Au for a total of 1.5M Oz Ag and 28.7K Oz Au contained; and inferred resources of 1.3M tonnes with grades of 40 g/t Ag and 1.18 g/t Au for a total of 1.7M Oz Ag and 50.3K Oz Au contained. At La Bolsa, Sonora, the company reported measured resources of 10.8M tonnes with grades of 10 g/t Ag and 0.7 g/t Au for a total of 3.5M Oz Ag and 242.8K Oz Au contained; indicated resources of 10.6M tonnes with grades of 8 g/t Ag and 0.54 g/t Au for a total of 2.7M Oz Ag and 184.3K Oz Au contained; and inferred resources of 13.7M tonnes with grades of 8 g/t Ag and 0.51 g/t Au for a total of 3.3M Oz Ag and 224.6K Oz Au contained. The company also reported mineral reserves as at June 30, 2023. At La Colorada, Zacatecas, it reported proven reserves of 5M tonnes with grades of 296 g/t Ag and 0.21 g/t Au for a total of 47.2M Oz Ag and 33.8K Oz Au contained; and probable reserves of 4.2M tonnes with grades of 292 g/t Ag and 0.19 g/t Au for a total of 39.1M Oz Ag and 25.3K Oz Au contained. At Dolores, Chihuahua, Pan American reported proven reserves of 6.3M tonnes with grades of 17 g/t Ag and 0.53 g/t Au for a total of 3.4M Oz Ag and 108.6K Oz Au contained, and probable reserves of 1.3M tonnes with grades of 24 g/t Ag and 0.53 g/t Au for a total of 1M Oz Ag and 22.1K Oz Au contained.
ON DEALS AND CORPORATE ISSUES
McEwen Mining Inc., announced the appointment of a new member to its Board of Directors (El Gallo mine complex, Sinaloa).
Sierra Metals Inc., announced the appointment of a new member to its Board of Directors as an independent non-executive Director (Bolivar Mine, Chihuahua).
Discovery Silver Corp., announced key appointments that strengthen the company’s Board of Directors, and also the permitting and technical teams. These include: an Independent Director, 2 Advisors to the Board, a Director, Corporate Affairs, Mexico, a Vice President Mineral Processing, and a Corporate Secretary & Manager Administrative Services (Cordero project, Chihuahua).
Aloro Mining Corp., announced that it has cancelled the option agreement with Cuesta del Cobre S de R.L. de C.V., to purchase the Quitovac Mine project in Sonora. After conducting further due diligence and considering the newly proposed changes to the Mining Law by the current Government of Mexico and the difficulties in obtaining a surface use agreement from the Quitovac Comunidad, Aloro feels that it is not in the Company’s best interest to proceed.
ON SOCIAL RESPONSIBILITY
Orla Mining Ltd., released its inaugural sustainability report. Highlights include that 25% Orla´s corporate goals were environmental, social, and governance (ESG)-linked, all of which were achieved; 100% of Orla executives and managerial-level employees were evaluated against ESG performance; achieved a respectable health and safety record, with a lost time injury frequency rate of 1.49 across their sites; generated USD $5.8M in community economic contributions at Camino Rojo, Zacatecas, including salaries, local procurement, land leases and investments in local infrastructure; achieved an emissions level of 0.19 tonnes of CO2 equivalent per ounce of gold equivalent produced at Camino Rojo, establishing the operation as a global leader on this metric; achieved 0.15 m3/t of processed ore water intensity, with zero water discharge (100% of water reused and recycled), at Camino Rojo; developed the “Towards 2030 Sustainability Strategy” and set ESG targets to build a more sustainable, resilient and inclusive business, anchored around the goal of accelerating value creation and net-positive benefits for stakeholders.
During the 33rd week of the year (August 14th to August 20th, 2023), 18 companies working in Mexico posted news releases. Two companies informed on exploration work at its properties, three reported second quarter 2023 results and one more of a fatality on an underground mine. One company informed on a private placement and one more on incentive option granting to directors, employees and consultants. Four companies informed on technical reports, updated mineral resources, drilling results and metallurgical testing on their projects. The closing on the transfer of a property in Durango was announced. ON MEXICO ISSUES, Camimex ask for the government intervention to reach an end to the Peñasquito mine strike, which begun in early June, and also for speedier action on environmental permitting. ON EXPLORATION, in Sonora, Colibri Resource received the permit to drill at Evelyn. In Coahuila, Monumental Minerals updated on its drilling program at Jemi. ON MINING, Guanajuato Silver reported a fatality on one of its mines. Sierra Metals, Discovery Silver and Americas Gold and Silver released production results for Q2 2023. ON FINANCING, Barksdale granted options to directors, employees and consultants. Oroco Resource raised $1.75 M. ON RESOURCES AND DEVELOPMENT, Golden Tag updated the mineral resource estimate for La Parrilla, in Durango. GR Silver Mining released drilling results from the San Marcial deposit on its Plomosas project in Sinaloa. Sierra Madre Gold and Silver released drilling results from the Tepic project in Nayarit. Silver Tiger Metals released drilling results from El Tigre, in Sonora. Vizsla Silver announced positive metallurgical test results for the Copala resource area on its Panuco project in Sinaloa. ON DEALS AND CORPORATE ISSUES, First Majestic Silver and Golden Tag Resources closed the transaction on La Parrilla mine in Durango. ON SOCIAL RESPONSIBILITY, no relevant news. ON MEXICO ISSUES
Camimex (Cámara Minera de México) asks relevant authorities to contribute in the solution to the Peñasquito strike in Zacatecas, and to act more speedily on the granting of environmental permits needed.
Colibri Resource Corp. received the necessary permit to drill up to 2,000 m on the Evelyn property in Sonora. The program is focusing on the Main Zone and West El Sahuaro areas.
Monumental Minerals Corp. provided an update on the current drill program at the Jemi project in Coahuila. To date 1,800 m have been drilled targeting rare earth mineralization, with 12 holes completed and a final one underway, with results expected in about three weeks. “Numerous intrusive peralkaline dykes, sills, and veins, with identifiable eudialyte … were intersected in the completed holes … These peralkaline dykes and sills tend to occur in structural zones that appear to be adjacent to larger bodies of syenitic intrusions and are associated with irregular skarn mineralization at the contacts with the host carbonate sedimentary rocks. These zones are as much as several tens of meters in width downhole. The syenite may be the feeders for the peralkaline features (parental rocks) and pegmatitic intrusive rocks. Light rare earth element (LREE) bearing minerals such as monazite and xenotime have also been identified by visual inspection.”
Guanajuato Silver Co. reported an employee fatality on August 12 due to an accident at the San Ignacio mine in Guanajuato.
Sierra Metals Inc. reported results for the quarter, including figures from its Mexican operations. At Bolivar, in Chihuahua, 4,640 tonnes were milled per day for a total of 406 K tonnes in the period, to produce 10.7 M Lb CuEq at cash cost $1.62 and an AISC of $3.02 per Lb CuEq. The Cusi mine in Chihuahua (a non-core asset) operated at 596 tpd and processed 51.7 K tonnes during the period to produce 241 K Oz AgEq.
Americas Gold and Silver Corp. reported consolidated financial and operational results for the quarter ended June 30, 2023, including figures from its Mexican operations. At Cosalá, in Sinaloa, 335 K Oz Ag, 3.2 M Lb Pb, 9.6 M Lb Zn were produced at cash cost $4.51 and an AISC of $11.10 per Oz AgEq.
Discovery Silver Corp. announced its financial results for the second quarter 2023 and provided an update on the quarter and subsequent events. The 2022 Environmental, Social and Governance (ESG) report was released. A marketed public offering raised C$51.75 M, “Completion of the reserve expansion and definition component of our Feasibility Study program consisting of an additional 35,000 m of drilling in over 100 drill holes completed since the cut-off for the Pre-Feasibility Study”. As of June 30, 2023, Discovery had cash and cash equivalents of $68 M.
Barksdale Resources Inc. announced the granting of incentive stock options to its directors, employees and consultants for up 1.3 M shares at a price of $0.59 per share. (San Javier, Sonora).
Oroco Resource Corp. closed a non-brokered private placement, raising $1.75 M (Santo Tomás, Sinaloa).
ON RESOURCES AND DEVELOPMENT
Golden Tag Resources Ltd. completed an updated mineral resource estimate for La Parrilla Silver Mine Complex in Durango. The resource includes 22 veins within the Rosarios, San Marcos and Quebradillas underground mines, currently on care and maintenance. Indicated resources are estimated at 615 K tonnes @ 176 gpt Ag, 0.08 gpt Au, 1.55% Pb, 1.39% Zn (or 263 gpt AgEq), containing 3.48 M Oz Ag, 1,700 Oz Au, 9.6 K tonnes Pb, 8.5 tonnes Zn, or 5.19 M Oz AgEq. Inferred resources stand at 1.26 M tonnes @ 191 gpt Ag, 0.12 gpt Au, 0.99% Pb, 1.01% Zn (or 256 gpt AgEq), containing 7.73 M Oz Ag, 5,000 Oz Au, 12.4 K tonnes Pb, 12.7 K tonnes Zn, or 10.33 M Oz AgEq.
GRSilver Mining Ltd. announced results from one step-out drill hole outside the mineral resource boundary in the San Marcial area of its Plomosas project in Sinaloa. Highlighted core length intervals comprise 20.2 m @ 187 gpt Ag, 0.05 gpt Au, 0.3% Pb, 0.7% Zn (including 5.7 m @ 513 gpt Ag, 0.05 gpt Au, 0.4% Pb, 0.8% Zn, which includes 0.8 m @ 2,041 gpt Ag, 0.14 gpt Au, 0.8% Pb, 1.9% Zn). The hole “intersected a multistage quartz-calcite-sulfide zone composed of irregular veins and breccias crosscutting other hydrothermal breccias …”.
Sierra Madre Gold and Silver Ltd. announced results from six additional diamond drill holes of the current program at its Tepic project in Nayarit. The holes targeted the Taunas and Veta Tomas structures, with highlighted intercepts comprising 2.50 m @ 296 gpt Ag, 1.15 gpt Au; 0.60 m @ 111 gpt Ag, 2.06 gpt Au; 4.85 m @ 84 gpt Ag, 0.24 gpt Au; 10.05 m @ 158 gpt Ag, 0.46 gpt Au; 4.35 @ 258 gpt Ag, 0.68 gpt Au; 1.0 m @ 92 gpt Ag, 0.36 gpt Au. “The Tepic Project is a +2,600-hectare project where the previous operator completed 149 core holes totaling more than 31,000 meters. “
Silver Tiger Metals Inc. released results from drilling at El Tigre project in Sonora. Highlighted core length results from the Sooy vein and Sulfide Zone comprise 1.0 m @ 0.01 gpt Au, 178 gpt Ag, 0.22% Cu, 1.0% Pb, 1.7% Zn; 10.7 m @ 0.06 gpt Au, 74 gpt Ag, 0.08% Cu, 0.5% Pb, 0.5% Zn (including 2.3 m @ 0.06 gpt Au, 191 gpt Ag, 0.22% Cu, 1.4% Pb, 1.6% Zn); 4.7 m @ 0.15 gpt Au, 344 gpt Ag, 0.44% Cu, 0.6% Pb, 1.0% Zn; 0.5 m @ 0.26 gpt Au, 1,294 gpt Ag, 0.62% Cu, 3.8% Pb, 6.3% Zn; 3.4 m @ 1.57 gpt Au, 592 gpt Ag, 0.08% Cu, 0.4% Pb, 0.7% Zn; 10.5 m @ 1.98 gpt Au, 151 gpt Ag, 0.14% Cu, 1.4% Pb, 2.9% Zn (including 5.3 m @ 3.87 gpt Au, 249 gpt Ag, 0.22% Cu, 2.2% Pb, 4.4% Zn); 4.0 m @ 0.11 gpt Au, 786 gpt Ag, 0.68% Cu, 0.6% Pb, 1.3% Zn; 0.8 m @ 0.16 gpt Au, 1,549 gpt Ag, 1.73% Cu, 0.2% Pb, 0.7% Zn.
Vizsla Silver Corp. announced positive preliminary metallurgical test results for the Copala resource area at its Panuco project in Sinaloa. Drill core was first crushed and the subject to simple bulk flotation. Flotation + regrind + Cyanide Leach on flotation concentrate, coupled with Cyanide Leach of Rougher Tails recovered 90.6% Au, 93.7% Ag. “Further test work of material from the Napoleon, Tajitos and Copala deposits is planned to better understand and optimise grind size, cyanide consumption, leach kinetics, residence times and recoveries.”
ON DEALS AND CORPORATE ISSUES
First Majestic Silver Corp. and Golden Tag Resources Ltd. closed the transaction on the La Parrilla past producing mine in Durango. First Majestic received 143.7 M shares of Golden Tag (US$20 M), and is to receive up to US$13.5 M in the form of three milestone payments either in cash or shares. The first repayment of US$2.7 M is due 18 months on the closing, the second US$7.75 M payment upon receipt of a resource estimate of 5 M Oz AgEq in reserves or 22 M Oz AgEq in measured and indicated resources and the third US$5.05 M payment upon receiving a resource estimate of 12.5 M Oz Ag Eq measured and indicated resources in a new zone on La Parrilla. In addition, First Majestic purchased 18 M shares of Golden Tag and 9 M warrants. Following the closing First Majestic owns 40.8% of Golden Tag shares, and if the warrants are exercised will own 42.2% on a partially diluted basis.
ON SOCIAL RESPONSIBILITY
No relevan news.
On the image below: Silicified vein ridge on a project in the Sonoran Desert. Picture by Jorge Cirett.
During the 31st week of the year (July 31st to August 6th, 2023), 25 companies working in Mexico posted news releases. Five companies informed on exploration work at its properties and seven more reported second quarter 2023 results. Two companies informed on private placements, while one declared a dividend payment. Five companies informed on technical reports, updated mineral resources, drilling results, mining plans and mine preparations on their projects. One company sold the royalties in some properties and one other is reviewing exploration opportunities in South America. ON MEXICO ISSUES, one company made clear commitment to get projects beyond Mexico, the country new mining policies showing its might. The Union – Grupo Mexico conflict in Sombrerete is to be solved in Mexico, not under the T-MEC, according to the federal government. Income tax returns from the mining industry fell by 35% on the first semester 2023. ON EXPLORATION, in Sonora, Prismo Metals mobilized a drill rig to Los Pavitos; Silver Spruce Resources resumed work at Diamante. In Chihuahua, Kootenay Silver updated on work at Columba. In Sinaloa, Prismo Metals updated on the drilling at Palos Verdes. ON MINING, Fresnillo PLC, Starcore International Mines, Capstone Copper, Equinox Gold, First Majestic Silver, Torex Gold and Orla Mining released production results for Q2 2023. ON FINANCING, Goldgroup Mining issued shares on a convertible loan. First Majestic Silver declared the payment of a dividend per share. Colibri closed the first tranche of a private placement. ON RESOURCES AND DEVELOPMENT, SilverCrest Metals released a new technical report with updated mineral resources and a new mine plan for Las Chispas in Sonora. Impact Silver updated on work to refurbish the Plomosas mine in Chihuahua. GoGold Resources released drilling results from Los Ricos South in Jalisco. Discovery Silver released drilling results from the FS program at Cordero, in Chihuahua. Heliostar Metals reported on the re-scoping study at Ana Paula, in Guerrero. ON DEALS AND CORPORATE ISSUES, Endeavour Silver entered into an agreement to sell its royalty on the Cozamin property. Xali Gold is to review exploration opportunities in South America. ON SOCIAL RESPONSIBILITY, no relevant news. ON MEXICO ISSUES
Editor comments. One more company working exclusively in Mexico announced plans to look for projects in other countries. No one can say the policies imposed by the current administration are not producing the results sought, even if its full weight is to be felt in the years to come.
The federal government directed that the labor conflict between Grupo Mexico and a Union (Sindicato Nacional de Trabajadores Mineros, Metalúrgicos, Siderúrgicos y Similares de la República Mexicana) in the Sombrerete mine in Zacatecas, has to be solved in Mexican courts, out of the T-MEC rapid response labor mechanism.
Income tax returns fell 34.6% year on year on the first semester of 2023, the biggest drop in 20 years. On VAT (IVA) and special tax on products and services (IEPS), the mining sector had refunds for $134 M ($2,275 M pesos) and $6.5 M ($110 M pesos) respectively.
Kootenay Silver Inc. informed two of three surface access agreements needed have been now signed, and the third one is in the final negotiation stage at its Columba project in Chihuahua.
Prismo Metals Inc. announced the mobilization of a drill rig for the planned 2,500 m program to its Los Pavitos project in Sonora. Assays for the last four trenches dug at the project were published. Highlighted intervals comprise 1.0 m @ 3.98 gpt Au, 5 gpt Ag; 2.80 m @ 1.18 gpt Au, 16 gpt Ag.
Prismo Metals Inc. updated on the drilling program at its Palos Verdes project in Sinaloa. Ten holes for a total of 2,035 m have been completed on the 2,500 m program, with the eleventh hole in progress and three holes remaining. On a second press release the company announced the expansion of the program by a joint committee by Prismo and Vizsla, to 3,600 m “in ten holes to be completed in two phases”.
Silver Dollar Resources Inc. submitted a drilling permit application for the next phase of drilling at the Nora project in Durango. “The geological setting is a Tertiary-aged volcanic flow-dome complex. Gold-silver mineralization is hosted within two structurally controlled epithermal veins, Candy and Nora…. Only 500 m of the potential 3-km strike of the Candy vein structure has been drill tested, and only to a depth of 250 m below surface”.
Colibri Resource Corp. and partner Silver Spruce Resources Inc. announced the resumption of field works at the Diamante project in Sonora. Stream sediment sampling, geological mapping and rock chip sampling are some of the planned activities.
Fresnillo PLC. provided its Q2-2023 production results. The Company produced over 14 M Oz Ag, 152,217 Oz Au, 13,994 tonnes Pb and 25,670 tonnes Zn from its operation in Fresnillo, Saucito and Juanicipio in Zacatecas, Cienega in Durango, Herradura and Nochebuena in Sonora, and San Julian in Chihuahua.
Starcore International Mines Ltd. presented results for its fiscal year and quarter ending on April 30, 2023. During the quarter the company processed 56.8 K tonnes @ 1.45 gpt Au, 11.2 gpt Ag, recovering 86.1% Au, 48.3% Ag, to produce 2,300 Oz Au, 10 K Oz Ag at its San Martin mine in Queretaro. For the year, the company produced 10,000 Oz Au, 85.4 K Oz Ag. Mine operating cash cost was $1,611 and $1,535 per AuEq Oz respectively for the quarter and full year.
Capstone Copper Corp. reported financial results for the second quarter of 2023, including figures from its Mexican operations. At Cozamin, in Zacatecas, 6.6 K tonnes Cu were produced at cash cost $1.63 per Lb Cu.
Equinox Gold Corp. announced its second quarter 2023 financial and operating results, without disclosing figures per project.
First Majestic Silver Corp. announced unaudited consolidated financial results for the second quarter 2023. During the period the company produced 2.63 M Oz Ag, 40,658 Oz Au, or 5.97 M Oz AgEq.
Torex Gold Resources Inc. reported Q2 2023 and operational results. During the period, the company mined 11.77 M tonnes from the open pit (13,293 tpd), 174 K tonnes from underground (1,913 tpd) at the Limon Guajes mine in Guerrero, of which 1.21 M tonnes were processed to produce 107,507 Oz Au at cash cost $848 per Oz Au and an all-in sustaining cost of $1,308 per Oz Au. Torex maintains its 2023 guidance to produce 440 K to 470 K Oz Au. The quarter closed with net cash of $273.8 M.
Orla Mining Ltd. announced the results for the second quarter of 2023. At the Camino Rojo Oxide mine in Zacatecas, 29,058 Oz Au were produced at an AISC of $696 per Oz Au. The pit development is being hindered by SEMARNAT lateness to authorize permits. Cash balance at the end of the period was $114.5 M.
Goldgroup Mining Inc. announced the issuance of 29.05 M shares upon conversion of the company’s outstanding convertible loan with a face value of $2.16 M (Cerro Prieto, Sonora).
First Majestic Silver Corp. declared a cash dividend of $0.0051 per common share for the second quarter of 2023 (San Dimas, Durango).
Colibri Resource Corp. closed the first tranche of the previously announced non-brokered private placement of “Units”, for gross proceeds of US$487 K. “Each Unit is comprised of: (i) US$1,000 principal amount of 10% secured convertible debentures (the “Debentures”) issued by the Company with a maturity date (“Maturity Date”) of 2 years from the date of issuance; and (ii) 5,416 common share purchase warrants of the Company” (Diamante, Sonora).
ON RESOURCES AND DEVELOPMENT
SilverCrest Metals Inc. announced results from an updated independent technical report for the Las Chispas operation in Sonora. The report describes a 1,200 tpd operation of ore averaging 4.02 gpt Au, 396.1 gpt Ag, recovering 98.0% Au, 97.0% Ag, to produce 57 K Oz Au, 5.5 M Oz Ag per year in an operation with a mine life (LOM) of 8 years, to generate a post-tax net present value of $549 M. Cash cost is estimated at $7.84 per Oz AgEq and an AISC of $11.98 per Oz AgEq. “The Mineral Resource Estimate model was updated to reflect: narrower veins located over a larger area, thus requiring increased underground development, increased constraints on geologic, statistical, and geostatistical modelling parameters resulting in reductions in resources mainly in Babicanora Main and Babicanora Norte Main veins and increased resources in the Babi Vista Vein, including the Babi Vista Splay. Additionally, there is an increase in the number of Mineral Resource veins and the veins are more widely dispersed. The Updated Inferred Mineral Resource Estimate is reduced from the 2021 FS due to conversion to M&I Mineral Resources and application of the same stricter constraints as applied to M&I Mineral Resources”.
Impact Silver Corp. provided an update on the recently acquired Plomosas mine in Chihuahua. The mill refurbishment is in the final stages, with testing and modification of the plant to start in late summer to ramp up production to the 200 tpd design capacity. The company has applied for an expansion of the current tailings pond while planning and permitting of the next one takes place. Refurbishment of ventilation, electrical and lighting systems are ongoing, and mine planning is being completed for 2023-2024. The current workforce is comprised by 70 company workers and 25 contract workers.
GoGold Resources Inc. announced drilling results from Los Ricos South project in Jalisco. The highlighted core length intercepts comprise 30.2 m @ 1.68 gpt Au, 278 gpt Ag (including 9.70 m @ 4.54 gpt Au, 769 gpt Ag); 34.8 m @ 1.37 gpt Au, 132 gpt Ag (including 7.0 m @ 4.68 gpt Au, 440 gpt Ag); 32.70 m @ 1.19 gpt Au, 124 gpt Ag; 11.7 m @ 0.93 gpt Au, 387 gpt Ag (including 1.40 m @ 5.36 gpt Au, 2,780 gpt Ag); 23.10 m @ 0.80 gpt Au, 143 gpt Ag; 28.10 m @ 0.71 gpt Au, 129 gpt Ag. “The Main area drilling campaign’s purposes is to better define the very high-grade portions of the current deposit that may be amenable to bulk underground mining…… It is expected that these holes will be included in an updated Resource to be released by the end of the summer”.
Discovery Silver Corp. released results from feasibility study (FS) drilling at its Cordero project in Chihuahua. Highlighted core length intervals of the reserve and expansion drilling comprise 62.10 m @ 0.25 gpt Au, 48 gpt Ag, 0.6% Pb, 0.6% Zn; 45.0 m @ 0.24 gpt Au, 66 gpt Ag, 0.5% Pb, 0.7% Zn; 51.7 m @ 0.19 gpt Au, 51 gpt Ag, 0.6% Pb, 0.9% Zn; 15.10 m @ 0.08 gpt Au, 278 gpt Ag, 3.1% Pb, 2.9% Zn; 12.4 m @ 0.19 gpt Au, 168 gpt Ag, 1.4% Pb, 3.1% Zn; 37.4 m @ 0.09 gpt Au, 79 gpt Ag, 1.1% Pb, 1.5% Zn; 38.5 m @ 0.17 gpt Au, 104 gpt Ag, 0.5% Pb, 0.3% Zn; 82.1 m @ 0.03 gpt Au, 33 gpt Ag, 0.6% Pb, 0.9% Zn. Discovery has now drilled 52,000 m in 164 holes as part of the FS drill program. Incoming “property-wide drilling will initially target large chargeability anomalies in the Sanson area (approximately 3.5 km to the northeast of Cordero) and skarn targets at depth in the northeast of the deposit. Currently, 9,000m of drilling is planned in 2023”.
Heliostar Metals Ltd. reported progress on re-scoping of the current pre-feasibility study (PFS) at the Ana Paula project in Guerrero. “The Company is evaluating three underground mining scenarios, with different cut-off grades and mining rates, that are being advanced for more detailed evaluation and comparison…… The Company will refine the options upon receipt of an updated resource model and metallurgical program results, both of which rely on drilling completed in 2023. Metallurgical results will be reported in October and an updated resource model is expected in November 2023”.
ON DEALS AND CORPORATE ISSUES
Endeavour Silver Corp. entered into an agreement with Gold Royalty Corp. to sell all of its interest in a 1% Cozamin Royalty for a total consideration of US$7.5 M, payable in cash. “The Royalty applies to two concessions (Calicanto and Vicochea) on Capstone’s Cozamin copper-silver mine, located 3.6 kilometres north-northwest of Zacatecas City in state of Zacatecas, Mexico”.
Xali Gold Corp. has decided to review exploration opportunities in South America, including Peru. The company updated on its Mexican projects: Exploration at El Oro in Estado de Mexico has been put on hold, whilst Sun River Gold (who has an option in the El Oro mine tailings) has been advancing permitting and providing some cash flow through advances on the Net Profit Interest due once in production. “Negotiations are also underway with Mexican groups regarding both upgrades and financing commitments to make the San Dieguito de Arriba (“SDA”) Plant in Western Mexico fully operational. Xali Gold terminated the previously announced agreement (see January 18, 2023 News Release) with Minera Cinco Reales S.A. de C.V. (“MCR”) earlier this month due to MCR’s lack of progress”.
ON SOCIAL RESPONSIBILITY
Aura Minerals Inc. released its 2022 sustainability report, with a 62% reduction in frequency rates of accidents, 92% of water recycling and establishing a decarbonization plan with the goal of reducing GHG emissions by 5% from 2020 levels by 2023.
On the image below: Silicified vein ridges on a project in the Sonoran Desert. Picture by Jorge Cirett.
By Miguel A Heredia During the 30th week of the year (July 24th to July 30th, 2023), at least 15 press releases were announced by companies working in Mexico, and 3 news published by the media, with five communicating production and financial results, four commenting on Mexican issues, three reporting resources and development of their properties, two disclosing deals and corporate issues, two informing on exploration results, and , two announcing financing issues, ON MEXICO ISSUES, Minera Autlan’s revenues in Q2, 2023 fell 51% due to the drop in manganese prices. Grupo Mexico obtained an increase of 37% of its net profits in Q2, 2023 due to the rise in copper prices. Several countries have requested a 10-year moratorium or pause on the exploitation of marine mining, as there is little information about the damage it could cause. Prismo, Silver Tiger and Reyna Gold reported the best drilling intercepts in Mexico on the fourth week of July, 2023. ON EXPLORATION, In Sonora, Reyna Gold released results from the first ten holes for a total of 1,328m of planned 5,500m from phase 2 drilling at its La Gloria project. In Sinaloa, Prismo reported results from seven holes drilled at its Palos Verdes project, in the Panuco mining district. ON MINING, Sierra Metals reported Q2, 2023 production and financial results from its Mexican operations. Mag Silver reported Q2, 2023 production results from its Juanicipio Mine in Zacatecas (56% / 44% Fresnillo plc and Mag respectively). Alamos Gold presented Q2 and H1 production and financial results from its Mulatos Mine in Sonora. Gold Resource announced Q2, 2023 production and financial results from its Don David Gold Mine in Oaxaca. Agnico reported Q2, and H1, 2023 production and financial results from their Pinos Altos and La India mines in Chihuahua and Sonora respectively. ON FINANCING, Bear Creek closed its previously announced non-brokered private placement for gross proceeds of CAD $8.2M (Mercedes Mine, Sonora). Excellon announced agreement to extend maturity of convertible debentures (La Negra Mine, Queretaro). ON RESOURCES AND DEVELOPMENT, Silver Tiger released drill results from its ongoing program at El Tigre project in Sonora. Torex provided a Q3, 2023 update on its Media Luna project in Guerrero. SilverCrest provided notice of updated technical report (Las Chispas Mine, Sonora). ON DEALS AND CORPORATE ISSUES, Fortuna announced that it will release its unaudited financial statements and Management Discussions & Analysis (MD&A) for the second quarter 2023 on Wednesday, August 9, 2023, after the market closes (San Jose Mine, Oaxaca). Tocvan acquired 100% interest in Pilar expansion area project in Sonora. ON SOCIAL RESPONSIBILITY, Fortuna Silver published its fifth annual sustainability report (San Jose Mine, Oaxaca).
ON MEXICO ISSUE
Minera Autlan’s revenues in Q2, 2023 fell due to the drop in manganese prices. During the Q2, 2023 the revenues of the Autlán mining company totaled USD $85.8M, that is, they had a loss of 51.2% in relation to the USD $175.7M obtained during the same period of 2022. In addition, between April and June 2023, its operating flow had a 92.9% drop, losing USD $66.4M. In its ﬁnancial report issued to the Mexican Stock Exchange (BMV), the company explained that said loss was the result of different factors, one of them the drop in the prices of products such as manganese, for the production of manganese ferroalloys, as well as in the inputs for the production of steel. The mining company reported a net loss of USD $20M, which is added to the USD $11.8M lost in the first quarter of this year, thus totaling net losses of USD $31.8M in the first half of the year.
Grupo Mexico reported a net profit of USD $840M, which represented an increase of 37.5% compared to the USD $611M reported during the same period of the former year. In addition to the profits, the company owned by Germán Larrea had an increase in its operating flow of 14.6% to a value of USD $1,628M, that is, USD $227M more than in the second quarter of the previous year. In addition to the gains in its net profit and in its operating ﬂow, the conglomerate that operates three divisions (Minera México, Grupo México Transportes and Grupo México Infraestructura), indicated that its revenues during Q2, 2023 amounted to USD $3,453M, which represented a growth of 7.8% compared to the USDS $3,203 that it reached in the same period of the previous year. Finally, it explained that, in the second quarter of the year, 79.2% of its income came from copper, 9.9% from molybdenum, 4% from silver, 2.8% from zinc, and the rest from income from gold and other byproducts.
Several countries including Brazil and Costa Rica, have requested a 10-year moratorium or pause on the exploitation of marine mining, as there is little information about the damage it could cause. The debate in the Assembly allows the 168 Member States of the International Seabed Authority (ISA), not just the 36 Council members, to express their views on this issue and formulate a general policy for the protection of the marine environment. At the Council meeting, governments and delegations from countries such as Norway, Mexico, the United Kingdom, China and Nauru continued to push for the mining code to be adopted as soon as possible. On the seabed, as far as is known, are 96% of the cobalt reserves, 84% of the nickel and 79% of the manganese, which are now crucial for the manufacture of batteries, wind generators and photovoltaic panels.
Prismo Metals Inc., Silver Tiger Metals Inc., and Reyna Silver Corp., reported the best drilling intercepts in Mexico on the fourth week of July, 2023. Details are shown in the table below:
Reyna Gold Corp., released results from the first ten holes for a total of 1,328m of planned 5,500m from phase 2 drilling at its La Gloria project in Sonora at La Republicana Zone. Drilling highlights include hole LG-23-39 with 1.09 g/t Au over 21.1m, including 14.20 g/t Au, 49 g/t Ag, and 0.32% Pb over 1m, including 1.67 g/t Au, 20 g/t Ag, and 0.3% Pb over 1m, including 1.20 g/t Au over 1m, including 1.77 g/t Au, 20 g/t Ag, and 0.5% Cu over 0.5m, including 9.14 g/t Au and 79 g/t Ag over 0.5m; hole LG-23-32 with 0.96 g/t Au over 19.90m, including 4 g/t Au and 23 g/t Ag over 1m, including 2.04 g/t Au and 20 g/t Ag over 0.75m, including 12.25 g/t Au, 123 g/t Ag, and 0.3% Pb over 0.90m; and hole LG-23-40 with 0.76 g/t Au over 19.05m, including 3.68 g/t Au over 3.85m, including 1.79 g/t Au and 17 g/t Ag over 0.55m, including 9.28 g/t Au, 96 g/t Ag, 0.5% Pb, and 0.3% Zn over 0.50m, including 19.55 g/t Au, 161 g/t Ag, 1.26% Cu, and 0.1% Zn over 0.35m, including 1.38 g/t Au, 14 g/t Ag, 0.1% Pb, and 0.2% Zn over 0.60m. “Two initial holes into Western Zone targeting a large Induced Polarization anomaly produced long intersections of anomalies of zinc and molybdenum with high levels of sulfides (pyrite, pyrrhotite, and chalcopyrite) and multiple gold intersections correlated with bismuth, adding to the evidence of potential proximity to a mineralized porphyry system”.
Prismo Metals Inc., reported results from seven holes drilled at its Palos Verdes project, in the Panuco mining district in Sinaloa. Drilling highlights include hole PV-23-25 with 1.36 g/t Au, 384 g/t Ag, 0.11% Cu, 0.1% Pb, and 0.3% Zn (512 g/t AgEq) over 0.3m, plus 38.2 g/t Au, 1,157 g/t Ag, 0.08% Cu, 0.06% Pb, and 0.1% Zn (4,311 g/t AgEq) over 1.35m, including 102 g/t Au, 3,100 g/t Ag, 0.2% Cu, 0.2% Pb, and 0.3% Zn (11,520 g/t AgEq) over 0.5m; hole PV-23-24 with 0.87 g/t Au, 43 g/t Ag, 0.07% Cu, 0.04% Pb, and 1.46% Zn (178 g/t AgEq) over 2m, including 1.84 g/t Au, 95 g/t Ag, 0.05% Cu, 0.05% Pb, and 1.3% Zn (302 g/t AgEq) over 0.84m, plus 3.3 g/t Au, 32 g/t Ag, 0.14% Cu, 0.4% Pb, and 1.6% Zn (384 g/t AgEq) over 1.83m, including 11.90 g/t Au, 60 g/t Ag, 0.2% Cu, 0.7% Pb, and 3.9% Zn (1,234 g/t AgEq) over 0.49m.; and hole PV-23-20 with 1.58 g/t Au, 0.01% Pb, and 0.01% Zn (189 g/t AgEq) over 0.9m, plus 0.21 g/t Au, 53 g/t Ag, and 0.01% Zn (71 g/t AgEq) over 0.20m.
Sierra Metals Inc., reported Q2, 2023 production and financial results from its Mexican operations. At Bolivar Mine, Chihuahua, the company processed 405,987 tonnes of 0.92% Cu, 20 g/t Ag, and 0.42% Au with metallurgical recoveries of 92.92%, 80.45%, and 66.38% respectively, to produce 7.65M Lb Cu, 207K Oz Ag, and 3,678 Oz Au (10.72M Lb CuEq). At Cusi Mine, Chihuahua, Sierra Metals processed 51,750 tonnes of 160 g/t Ag, 0.14 g/t Au, and 0.33% Pb with ,metallurgical recoveries of 81.67%, 58.06%, and 86.54% to produce 217K Oz Ag, 131 Oz Au, and 326K Lb Pb (241K Oz AgEq). In both cases, CuEq and AgEq were calculated at realized prices of USD $3.99/Lb Cu, USD $24.17/Oz Ag, USD $1,977/Oz Au, and USD $0.96/Lb Pb.
Mag Silver Corp., reported Q2, 2023 production results from its Juanicipio Mine in Zacatecas (56% / 44% Fresnillo plc and Mag respectively). The project operator (Fresnillo plc) processed 377,018 tonnes with an average grade of 498 g/t Ag to produce 5.27M Oz Ag, 10.6K Oz Au, 7.62M Lb Pb, and 12.14M Lb Zn.
Alamos Gold Inc., presented Q2 and H1 production and financial results from its Mulatos Mine in Sonora. During the period Q2, 2023, the company produced 60.3K Oz Au and sold 60.2K Oz Au for a cost of sales of USD $70.9M. The company reported a cost of sales for Oz Au of USD $1,178 per Oz Au sold, a total cash cost and AISC of USD $847 and USD $894 respectively per Oz Au sold, and a capital expenditures (sustaining, growth and capitalized expenditures) of USD $6.5M. For the period H1, 2023, Alamos has produced 110.8K Oz Au and sold 113.5K Oz Au for a cost of sales of USD $133.3M. The company reported a cost of sales for Oz Au of USD $1,175 per Oz Au sold, a total cash cost and AISC of USD $843 and USD $903 respectively per Oz Au sold, and a capital expenditures (sustaining, growth and capitalized expenditures) of USD $9.2M. The company also provided its 2023 outlook. It plans to produce 175K-185K Oz Au at a total cash and AISC of USD $900-950 and USD $950-1,000 respectively per Oz Au sold; and capital expenditures (sustaining, growth and capitalized expenditures) of USD $19-24M.
Gold Resource Corporation announced Q2, 2023 production and financial results from its Don David Gold Mine in Oaxaca. The company milled 113,510 tonnes of 1.59 g/t Au, 86 g/t Ag, 0.37% Cu, 1.6% Pb, and 3.7% Zn to produce 4,637 Oz Au, 289.8K Oz Ag, 748.2K Lb Cu, 3.1M Lb Pb, and 8M Lb Zn and sold 4,287 Oz Au, 274.2K Oz Ag, 732.5K Lb Cu, 2.95M Lb Pb, and 7.03M Lb Zn at realized prices of USD $2,010 per Oz Au, USD $24.03 per Oz Ag, USD $8,397 per tonne of Cu, USD $2,153 per tonne of Pb, and USD $2,485 per tonne of Zn. Total cash cost and AISC were USD $1,333 and USD $1,900 per Oz Au sold respectively. Year to date highlight include a total of 10.8K Oz Au sold and 569K Oz Ag sold, with a working capital of USD $20.8M at June 30, 2023.
Agnico Eagle Mines Limited reported Q2, and H1, 2023 production and financial results from their Pinos Altos and La India mines in Chihuahua and Sonora respectively. At Pinos Altos, Chihuahua, Agnico milled 401K tonnes in Q2, 2023 with an average grade of 1.82 g/t Au to produce 22,159 Oz Au at a production cost of USD $87 per tonne, a production cost per Oz Au produced of USD $1,566, and a total cash cost of USDS $1,282 per Oz Au produced. Year to date, Agnico has produced 765K tonnes with an average grade of 1.97 g/t Au to produce 46,293 Oz Au at a production cost of USD $88 per tonne, a production cost per Oz Au produced of USD $1,461, and a total cash cost of USDS $1,196 per Oz Au produced. At La India, Sonora, the company milled 880K tonnes in Q2, 2023 with an average grade of 0.74 g/t Au to produce 17,833 Oz Au at a production cost of USD $27 per tonne, a production cost per Oz Au produced of USD $1,326 and a total cash cost of USDS $1,385 per Oz Au produced. Year to date, Agnico has produced 1.54M tonnes with an average grade of 0.72 g/t Au to produce 34,154 Oz Au at a production cost of USD $28 per tonne, a production cost per Oz Au produced of USD $1,281, and a total cash cost of USDS $1,348 per Oz Au produced. Open pit mining and crusher operations are expected to be concluded in the Q4, 2023.
Bear Creek Mining Corporation closed its previously announced non-brokered private placement. A total of 16.725M of shares were sold at a price of CAD $0.49 per common share for gross proceeds of CAD $8.2M. Net proceeds will be used for exploration and production improvements at its Mercedes Mine in Sonora, and for general corporate purposes.
Excellon Resources Inc., announced agreement to extend maturity of convertible. The company entered into a binding agreement with holders of greater than 662/3% of its outstanding 5.75% secured convertible debentures in the aggregate principal amount of CAD $17.91M to extend the maturity date of the Convertible Debentures by 367 days from July 30, 2023 to July 31, 2024 (La Negra Mine, Querétaro).
ON RESOURCES AND DEVELOPMENT
Silver Tiger Metals Inc., released drill results from its ongoing program at El Tigre project in Sonora. Hole ET-23-463 intersected 0.95 g/t Au, 2 g/t Ag, 0.01% Pb, and 0.01% Zn (73 g/t AgEq) over 36m on the Open Pit Gold Zone, including 2.79 g/t Au, 2 g/t Ag, 0.01% Pb, and 0.01% Zn (212 g/t AgEq) over 6.4m, including 7.18 g/t Au, 5 g/t Ag, 0.01% Pb, and 0.01% Zn (544 g/t AgEq) over 1.5m, plus 0.13 g/t Au, 610 g/t Ag, 0.61% Cu, 0.4% Pb, and 0.7% Zn (711 g/t AgEq) over 9.9m on the Sulphide Zone, including 0.18 g/t, 827 g/t Ag, 0.83% Cu, 0.6% Pb, and 0.9% Zn (963 g/t AgEq) over 6.2m, including 0.19 g/t Au, 1,431 g/t Ag, 2.08% Cu, 0.5% Pb, and 1.7% Zn (1,713 g/t AgEq) over 0.7m, including 0.14 g/t Au, 1,089 g/t Ag, 1.01% Cu, 1.0% Pb, and 1.5% Zn (1,269 g/t AgEq) over 2.7m, including 0.14 g/t Au, 1,166 g/t Ag, 1.04% Cu, 0.8% Pb, and 0.5% Zn (1,3131 g/t AgEq) over 2m, plus 0.17 g/t Au, 213 g/T Ag, 0.24% Cu, 1.7% Pb, and 1.4% Zn (335 g/t AgEq) over 4m on Elk Tigre Vein Zone, including 0.18 g/t Au, 243 g/t Ag, 0.27% Cu, 2 % Pb, and 1.6% Zn (385 g/t AgEq) over 3.2m; and hole ET-23-464 with 0.04 g/t Au, 63 g/t Ag, 0.08% Cu, 0.2% Pb, and 0.03% Zn (80 g/t AgEq) over 3m on the HW Gold Zone, including 0.04 g/t Au, 167 g/t Ag, 0.18% Cu, 0.6% Pb, and 0.06% Zn (204 g/t AgEq) over 0.7m, plus 0.07 g/t Au, 31 g/t Ag, 0.13% Cu, 0.5% Pb, and 0.4% Zn (72 g/t AgEq) over 12m, including 0.08 g/t Au, g9 g/t Ag, 0.09% Cu, 0.7% Pb, and 1.2% Zn (140 g/t AgEq) over 3m, plus 0.33 g/t Au, 43 g/t Ag, 0.03% Cu, 1.7% Pb, and 11.6% Zn (496 g/t AgEq) over 6.7m on the Sulphide Zone, including 0.21 g/t Au, 39 g/t Ag, 0.04% Cu, 2.6% Pb, and 24.6% Zn (936 g/t AgEq) over 0.7m, plus 0.26 g/t Au, 14 g/t Ag, 0.02% Cu, 0.7% Pb, and 0.7% Zn (64 g/t AgEq) over 3.1m. The company plans further drilling to the north and south of the Sulphide Zone to expand this area of known mineralization.
Torex Gold Resources Inc., provided a Q3, 2023 update on its Media Luna project in Guerrero. The company reported that development activities continue to advance with the project remaining in budget and on schedule, with 35% complete across engineering, procurement, underground development, and surface construction. With USD $143.6M of expenditures incurred through H1 and the quarterly spend rate expected to increase further, full year guided expenditures are trending towards the lower end of the guided range of $390M to $440M. As of June 30th, 45% of upfront project expenditures had been committed or incurred. The Guajes Tunnel has advanced 4,500 metres with breakthrough on track for early Q1 2024, if not earlier. At South Portal Lower, the main spiral ramp was completed post-quarter end and the primary tunnel has advanced 2,075 metres. Civil works on both sides of the Balsas River continued during the quarter, and concrete installation will commence as the site-wide concrete contractor is selected. “With development activities tracking to plan, robust financial liquidity, and strong ongoing cash flow from El Limón Guajes, we are well positioned physically and financially to deliver Media Luna on time and on budget, with first concentrate production in Q4 2024 and commercial production in early 2025.”
SilverCrest Metals Inc., provided notice of updated technical report (Las Chispas Mine, Sonora). The company announced that it will release results from its updated Technical Report on Monday, July 31, 2023 after market close.
ON DEALS AND CORPORATE ISSUES
Fortuna Silver Mines Inc., announced that it will release its unaudited financial statements and Management Discussions & Analysis (MD&A) for the second quarter 2023 on Wednesday, August 9, 2023, after the market closes (San Jose Mine, Oaxaca).
Tocvan Ventures Corp., entered into a binding letter of intent with a private title owner for the 100% acquisition of 2,172.7 ha immediately adjacent and north of its Pilar Gold-Silver Project Sonora, Mexico. Prior to closing a definitive agreement, the acquisition is subject to a 60-day due diligence period effective July 25, 2023. Terms of the agreement include a cash payment of USD $4M and USD $2.5M in common shares which should be issued over the 5-year term of the agreement. A total minimum work commitment of USD $1 million USD is considered over the agreement. The title owner will retain a 2% NSR on the properties acquired. After the initial 5-year term the company can elect to extend the agreement an additional 10 years by starting advanced royalty payments or purchase full title ownership through an additional cash payment of USD $500K. On Closing of a Definitive Agreement, an initial payment of USD $250K will be made.
ON SOCIAL RESPONSIBILITY
Fortuna Silver Mines Inc., published its fifth annual sustainability report, which details the Company´s performance on key environmental, social, and governance (ESG) indicators during 2022. Highlights include that 75% of the directors are independent, 37.5% of the directors are female; there are 5,233 full-time workers, including 2,174 direct employees, from which 16.84% of all employees are female and19.15% of management positions are female; USD $5.64M were spent on community-related investments; 41.85% of employees come from local communities, and 7.71% of suppliers sourced from local communities; 50% of the operating mines are compliant with ISO 14001; 63% of water used is recycled: and greenhouse gas (GHG) emissions intensity of 17.94 tonnes of carbon dioxide equivalent (tCO2eq) emitted per thousand tonnes of processed ore. (San Jose Mine, Oaxaca).
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 diatreme breccia in a project in Durango, Mexico. Photo by Miguel A Heredia.
By Jorge Cirett During the 29th week of the year (July 17th to July 23rd, 2023), 21 companies working in Mexico posted news releases. Two companies informed on exploration work at its properties and five more reported second quarter 2023 results. One company informed on the closing of a private placement, while six companies reported on work at their advanced properties and six more informed on acquisitions, company’s plans and issues. ON MEXICO ISSUES, mining companies are reflecting the changes in the business environment by making strategic moves, including diversification of the countries they operate in. The coal mine in Coahuila that registered two fatalities during the week had suspension orders since 2022. Mining organization and experts question LitioMx ability to operate, and its almost non-existent budget. ON EXPLORATION, in Sonora, Regency Silver informed on drilling at Dios Padre; Prismo Metals reported on the trenching program at Los Pavitos. In Sinaloa, Prismo Metals informed on drilling at Palos Verdes. ON MINING, Americas Gold and Silver, Bear Creek Mining, First Majestic Silver, Golden Minerals and Avino Silver released production results for Q2 2023. ON FINANCING, Guanajuato Silver announced a bought deal private placement with a sole underwriter. ON RESOURCES AND DEVELOPMENT, Aura Minerals provided an exploration update for Aranzazu, in Zacatecas. First Majestic Silver reported exploration results from San Dimas, in Durango, and from Santa Elena, in Sonora. Heliostar Metals released drilling results from Ana Paula, in Guerrero, including the strongest gold intercept for Mexico in the year. GoGold Resources released drilling results from the Main Area of the Los Ricos South project in Jalisco. Gatos Silver updated on resource definition drilling at its Cerro Los Gatos property in Chihuahua. Endeavour Silver provided a construction update for its Terronera project in Jalisco. ON DEALS AND CORPORATE ISSUES, Riverside Resources provided an outlook of its ongoing activities, including a strengthening of its diversification out from Mexico. Radius Gold informed on the extension of the exclusivity agreement with Fresnillo PLC on the Plata Verde project, in Chihuahua. Newmont included several references to the suspension of activities at Peñasquito, in Zacatecas, on its Q2 2023 report. Golden Tag Resources updated on the La Parrilla (Durango) acquisition from First Majestic. Excellon Resources announced the sudden termination of the acquisition process of La Negra project in Queretaro by the vendor. Sierra Metals informed the conclusion of the “Special Committee” formed last year to tackle the challenging circumstances the company is addressing. ON SOCIAL RESPONSIBILITY, no relevant news. ON MEXICO ISSUES
Editor comments. The hostile stance at the mining industry since the instauration of the present federal administration in Mexico, which culminated with the passing of a mining law that is to practically stop any new exploration plays and make current operations riskier, is rendering results, with companies consolidating plans in their search for greener pastures. Riverside Resources is one of the few companies explicitly making public their diversification plans out from Mexico, but they are certainly not alone. Great Panther Silver is a company that bailed out before the president made the legal move to reflect its personal stance in the industry. Other companies are understandably doing the same, although the widespread anti-mining position in many countries generates second thoughts on the issue.
The Secretaría de Trabajo y Previsión Social (STPS-Work Bureau) pointed that the las visit to the Minera Fuga, in Coahuila, was in August 2022. During the review dangerous conditions were detected. Two workers died last week on the mine after falling 10 meters when the hoist winch failed. STPS ruled access restrictions and limitation of operations, which are still in force, “any operation of the mine is out of the law”.
Mining organizations and experts raise doubts on LitioMx ability to operate. Only US$2 M have been budgeted for exploration and evaluation of lithium deposits in 2023 and 2024. Just Bacanora Lithium has invested more than US$450 M in the definition of resources in its lithium-clay deposit in Sonora, as an example of the unreasonable amounts directed to the search for lithium. This is a large deposit with a questionable economic viability, as lithium is associated to clays, and an economic process to extract the lithium still has to be proved. In the World, 85% of lithium is mined from brines in dry lakes, and the rest from hard-rock pegmatites.
Regency Silver Corp. announced the completion of the phase 1 of the 2023 drilling program at its Dios Padre project in Sonora. Nine holes were drilled as follow up to the one that intercepted 35.8 m @ 6.84 gpt Au, 0.88% Cu, 22 gpt Ag and 9.8 m @ 13.97 gpt Au, 1.1% Cu, 50 gpt Ag on the 2022 program. Eight of nine holes intersected the target breccia zone down-dip and along strike, with the breccia appearing to widen with depth. A megacrystic quartz-feldspar porphyry appears to be the primary control for copper mineralization, with the high-grade sulfide breccia on the footwall of the porphyry. “The shallower intersections are more pyrite dominant with deeper intersections containing more specularite. Chalcopyrite appears to be highest in abundance where the breccia is proximal to the lower contact of the quartz-feldspar porphyry”. Final results will be released after reception and evaluation.
Prismo Metals Inc. reported that the trenching program at Los Pavitos property in Sonora has been completed. Results for 303 of the 347 samples collected from trenches have been received. “The trenching was generally focused on areas with little outcrop along strike from areas with quartz veining and high-grade surface assays”. Highlighted results comprise 6.4 m @ 0.1 gpt Au; 19.0 m @ 2.2 gpt Au, 23 gpt Ag (including 4.0 m @ 10.3 gpt Au, 104 gpt Ag) at Auras, 18.5 m @ 0.2 gpt Au; 2.1 m @ 1.7 gpt Au; 8.0 m @ 0.5 gpt Au; 7.8 m @ 2.3 gpt Au, 13 gpt Ag; 2.5 m @ 0.9 gpt Au, 70 gpt Ag; 17.70 m @ 0.13 gpt Au at Santa Cruz and 1.40 m @ 0.74 gpt Au at Española.
Prismo Metals Inc. is in the process of completing a 2,500 m drill program on its Palos Verdes project, in Sinaloa. The program was designed to test areas without previous drill access. Eight holes have been completed for a total of 1,500 m and assays have been received for the first seven holes. Results are expected to be announced next week.
Americas Gold and Silver Corp. provided Q2-2023 production results. The Cosalá operations in Sinaloa produced 335 K Oz Ag, 3.9 M Lb Pb, 9.9 M Lb Zn, benefitting from higher grade Ag areas in the upper zone of the San Rafael mine.
Bear Creek Mining Corp. announced production results for the second quarter of 2023. At the Mercedes mine in Sonora, 9,199 Oz Au, 39.8 K Oz Ag were produced by mining 121.5 K tonnes, processing 125.1 K tonnes grading 2.41 gpt Au, with a recovery of 94.54% Au during the period. Cut and fill mining was revised to room and pillar mining at San Martin and sub-level caving and sub-level stoping at Marianas. “Tonnes mined from the San Martin deposit are expected to double from 400 to 800 tonnes per day during Q3 2023 as the available working faces increase. The San Martin deposit contains 289k tonnes in Measured and Indicated Resources at an average grade of 6.6 g/t gold and is projected to account for roughly 50% of Mercedes’ gold production in the second half of the year”.
First Majestic Silver Corp. released Q2 2023 production results. In Mexico, the company produced 2.63 M Oz Ag, 40,858 Oz Au (5.97 M Oz AgEq) from its operations at San Dimas in Durango, Santa Elena in Sonora and La Encantada in Coahuila. During the period 16 drill rigs were active in Mexico, eight at San Dimas (16,588 m of drilling), six at Santa Elena (16,373 m of drilling) and two (1,950 m of drilling) at La Encantada. For the year First Majestic aims to produce between 10.5 and 11.2 M Oz Ag and between 169 to 180 K Oz Au at cash cost between $12.33 and $12.71 and an AISC between $17.23 and $17.66.
Golden Minerals Co. reported production figures for Q2 2023. At Rodeo, in Durango, 154.4 K tonnes were mined, 54.3 K tonnes processed at a rate of 603 tonnes per day, averaging 1.6 gpt Au, 9 gpt Ag, recovering 72.6% Au, 75.5% Ag, to produce 2,081 Oz Au, 11.5 K Oz Ag. The company also sold 656 tonnes of Au-rich pyrite concentrate, 118 tonnes of Ag-rich lead concentrate and 63 tonnes of Zn concentrate, produced from mineralized material from the Velardeña properties (also in Durango), material that was mined and stockpiled during 2022 as part of the test-mining program.
Avino Silver & Gold Mines Ltd. announced production results for Q2 2023. At the Avino mine in Durango, 157.4 K tonnes were milled averaging 53 gpt Ag, 0.44 gpt Au, 0.49% Cu, recovering 87% Ag, 68% Au, 84% Cu, to produce 232.4 K Oz Ag, 1,520 Oz Au, 1.44 M Lb Cu, or 587.3 K Oz AgEq. Recent news includes the best drill intercept in the long history of the mine, and drilling results that probe the continuity of mineralization 1.1 km downdip from the surface outcrop. Metallurgical testing at the Oxide Tailings project has been completed, taking the resource to 5.7 M tonnes containing 17.4 M Oz AgEq. The Dry-Stack tailing facility is complete and operational.
Guanajuato Silver Co. announced a bought deal private placement with Cantor Fitzgerald Canada as the sole underwriter, for gross proceeds of C$8 M. “The Corporation shall pay to the Underwriter a cash commission equal to 6.0% of the gross proceeds of the Offering and 6.0% broker warrants based on the number of Units sold in the Offering” (El Cubo and Valenciana, Guanajuato).
ON RESOURCES AND DEVELOPMENT
Aura Minerals Inc. provided an exploration update from its properties, including from its operations at Aranzazu, in Zacatecas. Aura Silver controls 11,000 ha in the project area, and only 5% of the mineral claims have been drilled. Exploration efforts have focused on extending the life of mine (LOM) and building the basis for an increase in production capacity. Currently Aura has a LOM of seven years based on mineral reserves only. Several early stages targets have been identified, including “new copper-gold skarns, manto type polymetallic mineralization, and high-grade gold/silver veins”. For 2023, 29,400 m of drilling are intended to be completed, focusing on testing the continuity of the GH and Cabrestante areas, with drilling also planned for the El Cobre and Aranzazu extensions.
First Majestic Silver Corp. reported exploration results from San Dimas in Durango and Santa Elena (Ermitaño Zone) in Sonora. At San Dimas, true width drilling intercepts from the Sinaloa North-Elia vein, the Santa Teresa vein and the Perez vein include 3.88 m @ 8.38 gpt Au, 763 gpt Ag; 0.98 m @ 5.84 gpt Au, 396 gpt Ag; 4.12 m @ 14.98 gpt Au, 89 gpt Ag; 5.69 m @ 5.41 gpt Au, 883 gpt Ag; 3.05 m @ 4.58 gpt Au, 740 gpt Ag; At Santa Elena, resource conversion holes, in addition to intercepts in the Ermitaño vein, multiple holes intersected mineralization in secondary veins located in the hanging and footwall of the Ermitaño vein, returning true width intercepts of 15.55 m @ 5.98 gpt Au, 222 gpt Ag; 13.3 m @ 4.27 gpt Au, 127 gpt Ag; 6.42 m @ 13.73 gpt Au, 150 gpt Ag; 1.96 m @ 3.39 gpt Au, 56 gpt Ag.
Heliostar Metals Ltd. reported drill results from two additional holes at the Ana Paula project in Guerrero. “The current drill program continues to demonstrate higher overall grades over broad widths relative to the current mineral resource” in Heliostar’s quest to evaluate the possible development of an underground mine. Highlighted core length intervals comprise 241.95 m @ 9.06 gpt Au (including 31.5 m @ 21.5 gpt Au; 35.2 m @ 23.6 gpt Au and 9.9 m @ 42.4 gpt Au); 104.1 m @ 6.14 gpt Au (including 19.5 m @ 15.1 gpt Au). These holes were drilled within the resource model with increases in grade to the expected intercept of 33% and 38%.
GoGold Resources Inc. released drilling results from the Main Area of the Los Ricos South project in Jalisco. Highlighted core length intervals comprise 14.0 m @ 1.77 gpt Au, 574 gpt Ag (including 2.3 m @ 10.30 gpt Au, 3,308 gpt Ag); 6.3 m @ 0.59 gpt Au, 86 gpt Ag; 16.2 m @ 0.70 gpt Au, 72 gpt Ag; 14.0 m @ 2.90 gpt Au, 85 gpt Ag; 17.5 m @ 0.60 gpt Au, 93 gpt Ag; 9.9 m @ 0.95 gpt Au, 334 gpt Ag; 11.9 m @ 1.28 gpt Au, 183 gpt Ag; 9.5 m @ 1.08 gpt Au, 186 gpt Ag; 5.4 m @ 1.97 gpt Au, 136 gpt Ag; 11.6 m @ 1.50 gpt Au, 165 gpt Ag; 22.5 m @ 1.20 gpt Au, 124 gpt Ag; 5.8 m @ 2.27 gpt Au, 42 gpt Ag; 24.9 m @ 1.01 gpt Au, 104 gpt Ag; 7.1 m @ 1.25 gpt Au, 417 gpt Ag; 16.5 m @ 1.32 gpt Au, 153 gpt Ag; 17.3 m @ 2.53 gpt Au, 160 gpt Ag; 13.7 m @ 1.48 gpt Au, 213 gpt Ag. It is expected these holes will be included in an updated resource to be released by the end of the summer.
Gatos Silver Inc. provided an update on the definition and exploration drilling at its Cerro Los Gatos property in Chihuahua. Highlighted true width intercepts from resource definition drilling comprise 25.7 m @ 78 gpt Ag, 0.05 gpt Au, 0.53% Cu, 2.1% Pb, 5.0% Zn; 9.5 m @ 87 gpt Ag, 0.18 gpt Au, 0.44% Cu, 1.9% Pb, 6.3% Zn; 2.7 m @ 192 gpt Ag, 0.17 gpt Au, 0.20% Cu, 8.0% Pb, 9.0% Zn; 3.8 m @ 181 gpt Ag, 0.11 gpt Au, 0.28% Cu; 1.7% Pb, 2.0% Zn; 4.1 m @ 39 gpt Ag, 0.10 gpt Au, 0.45% Cu, 1.1% Pb, 4.5% Zn; 2.7 m @ 91 gpt Ag, 0.06 gpt Au, 0.61% Cu, 4.7% Pb, 11.4% Zn; 12.2 m @ 129 gpt Ag, 0.04 gpt Au, 0.54% Cu, 1.1% Pb, 2.3% Zn; 10.0 m @ 146 gpt Ag, 0.11 gpt Au, 0.45% Cu, 2.2% Pb, 3.2% Zn. The company’s exploration land package covers 103,000 ha, with over 50 targets identified to date. Mamba, Portigueño, Lince, Santa Ana and San Luis are some of the areas where current work is defining drilling targets through mapping, re-logging and re-interpretation, Lidar surveys and geophysics.
Endeavour Silver Corp. provided a construction update for its Terronera project in Jalisco. More than $70 M have been spent since Q1 2022 (of a $144 M budget), with construction progress currently at 30%. Detail mill and surface facilities engineering is over 70% complete, the access road improvements are almost finished and the permanent camp facilities are at 90% completion. Nearly 600 m of underground development have been completed and the mill site earthworks have finalized. The workforce has increased to 83 employees and 390 contract workers. Upcoming work includes advancing the mill area concrete work, awarding the mill construction contract, receiving major mill components in Q3 and advancing Portal 2 and Portal 4 development for initial ore access in Q1 2024.
ON DEALS AND CORPORATE ISSUES
Riverside Resources Inc. provided an outlook of its ongoing activities on the first half of the year, and its plans for the reminder of 2023. The company is diversifying its activities out from Mexico, strengthening objectives in Canada. Riverside consolidated the Union project in Sonora, with assays of up to 1 Oz per ton Au in the now controlled mine area. Another development is the royalty in the Tajitos asset (Sonora), with funds having been received from Fresnillo PLC, who is advancing the property.
Radius Gold Inc. informed the extension of the exclusivity agreement with Fresnillo PLC for the Plata Verde project in Chihuahua. “The amended Agreement provides Minera San Julian a 6-month extension to its Exclusivity Period from July 7, 2023 to January 7, 2024 to negotiate a Definitive Agreement that would include an option agreement to earn a 70% interest in the Plata Verde project. The amended Agreement also provides for interim funding by Minera San Julian of US$206,000 … as well as an additional advance of US$500,000 to fund initial drill testing”.
Newmont Corp. announced second quarter 2023 results, including some information from its Peñasquito mine in Zacatecas. In June, Newmont suspended operations at Peñasquito to focus on finding an appropriate and sustainable resolution to the dispute with the leadership of the National Union of Mine and Metal Workers of the Mexican Republic. “Peñasquito incurred $23 million of operating costs and $15 million of depreciation and amortization due to the suspension of operations”.
Golden Tag Resources Ltd. updated on the proposed acquisition of the La Parrila silver mine complex (in Durango) from First Majestic Silver Corp pursuant to the agreement announced in December 2022. The transaction is expected to close in August, its completion remains subject to the approval by Golden Tag shareholders and receipt of all regulatory approvals, including that of the TSXV. The company has already received approval from Mexico’s antitrust agency, the Comisión Federal de Competencia Económica (COFECE) for the acquisition of La Parrilla. “Golden Tag has closed on two tranches of its non-brokered private placement financing of subscription receipts for aggregate gross proceeds of $6.9 million. The Company has received further subscription commitments, which when combined with the first two tranches, total in excess of $7.2 million”.
Excellon Resources Inc. announced the unexpectedly reception of a notice of termination of the previously announced acquisition of the La Negra project from the seller, Dalu S.ar.l., an entity owned by an investment fund managed by Orion Resource Partners. Consequently, the company is also announcing the termination of its previously announced subscription receipts offering, which was intended to finance the acquisition. Excellon is in advanced discussions with holders of more than 66-2/3% of the principal of its outstanding convertible debentures maturing on July 30, 2023 in the principal amount of C$17.9 M with a view to extending the maturity date and more broadly restructure the Debentures. “the Company continues to actively assess various interim financing options as well as other corporate development and strategic opportunities to complement the Company’s go-forward strategy, which may include divestitures, mergers or spin-offs of the Company’s assets to provide additional near term liquidity”.
Sierra Metals Inc. informed that in October 2022 a Special Committee integrated by the company’s independent directors “initiated a process to explore, review and consider options to optimize the operations of the Company as well as financing, restructuring and strategic options in the best interests of the Company”. The process has made progress towards stabilizing and optimizing operations, pumping and ventilation infrastructure implementation at the Bolivar mine in Chihuahua, increased throughput, appointment of officers and refinancing of secured debt repayment obligations that were due in 2023. As such, the “Special Committee” has been concluded. Some recommendations to follow include near term equity financing to provide working capital and flexibility, funding for longer term capital expansions and minimizing investment in non-core assets.
ON SOCIAL RESPONSIBILITY
No Relevant News.
On the image below: Vein ridge on a project in the Sonoran Desert. Picture by Jorge Cirett.
By Miguel A Heredia During the 28th week of the year (July 10th to July 16th, 2023), at least 32 press releases were announced by companies working in Mexico, and 1 news published by the media with ten communicating production and financial results, six disclosing deals and corporate issues, five informing on exploration results, five reporting resources and development of their properties, three announcing financing issues, three commenting on Mexican issues, and one discussing social issues. ON MEXICO ISSUES, Almadex dropped several of its legacy projects in Mexico (Yago and Las Lajas projects in Nayarit and San Luis Potosi States respectively). Galore announced that due to some recent changes in the mining laws enacted by the Mexican Government, Galore employed the services of a Law firm in Mexico to file an Amparo (injunction). In 2022, the production of zinc, one of the six main metals that Mexico produces for its internal use and for export, was reduced because the federal authorities decided to reduce the operations of the mines. Torex Gold, Sierra Madre, Vizsla, and Prime Mining reported the best drilling intercepts in Mexico on the second week of July, 2023. ON EXPLORATION, In Sonora, Canuc acquired an additional 96.5051 hectares claim contiguous with the company´s existing claims at its San Javier project, and Colibri submitted an application for additional drilling at its Evelyn project. In Coahuila, Monumental Minerals commenced a drilling program at its Jemi Rare Earth Element project. In Sinaloa, Prismo provided an update of the current drilling program at its Palos Verdes project. In Nayarit, Sierra Madre presented results from four additional holes drilled at its la Tigra project. ON MINING, Aura Minerals, Endeavour, Fortuna Silver, GoGold, and Orla reported Q2, 2023 production results from their Mexican mine operations. Capstone and Argonaut commented that they will release their Q2, 2023 production results on August 2 and August 11 respectively. Guanajuato Silver commenced a high-grade pillars exploitation program at its la Valenciana Mine Complex in Guanajuato. Gold Resource reported Q2 and H1, 2023 production results from Don David Gold Mine in Oaxaca. Guanajuato Silver announced Q2, 2023 consolidated production results from their Mexican mine operations. ON FINANCING, GR Silver announced a non-brokered private placement to raise total gross proceeds of up to $1M (Plomosas project, Sinaloa). Bear Creek communicated that it plans to conduct a non-brokered private placement for gross proceeds of up to CAD $8.2M (Mercedes Mine, Sonora). Heliostar closed its previously announced private placement for gross proceeds of approximately $7M (Ana Paula project, Guerrero). ON RESOURCES AND DEVELOPMENT, GoGold reported on the proposed SART Zn Circuit for its Parral Tailings Project in Chihuahua. Prime Mining released results from 9 holes drilled at its Los Reyes property in Sinaloa. Sonoro identified oxide mineralized target for resource expansion at its Cerro Caliche project in Sonora. Vizsla announced results from 20 expansion drill holes targeting the Copala Resource Area at its Panuco project in Sinaloa. Torex presented assay results from its ongoing drilling program at its El Limon-Guajes underground mine in Guerrero. ON DEALS AND CORPORATE ISSUES, Almaden granted stock options to directors, officers, consultants and employees of the Company (Ixtaca project, Puebla). Azucar granted stock options to directors, officers, employees, and consultants of the Company (El Cobre, Veracruz). GR Silver announced Board and Management changes (Plomosas project, Sinaloa). Monumental Minerals reported results from its annual general meeting of shareholders (Jemi Rare Earth Element project, Coahuila). Colibri reported results from its annual general meeting of shareholders (Pilar project, Sonora). Regency Silver announced that it has engaged Kin Communications to assist with its investor relations activities (Dios Padre project, Sonora). (ON SOCIAL RESPONSIBILITY, Industrias Peñoles confirmed that it promotes a culture of environmental care in communities.
ON MEXICO ISSUES
Almadex Minerals Ltd., dropped several of its legacy projects in Mexico (Yago and Las Lajas projects in Nayarit and San Luis Potosi States respectively), “where exploration progress is challenged by numerous impediments to timely progress”.
Galore Resources Inc., announced that due to some recent changes in the mining laws, enacted by the Mexican Government, Galore employed the services of a Law firm in Mexico to file an Amparo (injunction). “An Amparo is a constitutional remedy that protects individuals and entities against violations of their constitutional rights, in which this Amparo is the only legal remedy to challenge the constitutionality of the new mining laws. In the case of the Mining Concessionaires, it is important to exercise this right and obtain a resolution to make sure the authority will respect rights of previous concessions”.
In 2022, the production of zinc, one of the six main metals that Mexico produces for its internal use and for export, was reduced because the federal authorities decided to reduce the operations of the mines. According to the Mexican Mining Chamber (CAMIMEX), the 2022 national mining production registered 744,324 tons, showing a decrease because in Zacatecas Newmont’s Peñasquito project reduced its tonnage to 34,473, while Fresnillo plc’s El Saucito project also limited its production to 9,054 tons less. In addition, the mines La Platosa owned by Excellon Resources, La Cienega owned by Fresnillo plc and Velardeña owned by Industrias Peñoles decreased their volumes by 40.6%, 15.5% and 4.6%, respectively. Chihuahua is another state whose production decreased with Grupo Mexico’s Santa Barbara project, which registered 20,696 tons, 11.5% lower than the previous year; and San Francisco del Oro from Minera Frisco with 17,923 tons, 4.3% less compared to 2021. Other states in which their mines decreased their production were: San Luis Potosí, with Charcas from Grupo Mexico, with an annual decrease of 16.4%; in Aguascalientes, Asientos of Minera Frisco, with 11.3%; in the State of Mexico, Tizapa with 5.9%, and in Guerrero with Capela, with 5.4%, both from Industrias Peñoles. Also, located in Guerrero, Luca Mining’s Campo Morado reduced its production by 23.2%. Zacatecas continued to be the most important, since its participation represented 48.4% of the national total and meant an increase of 1% compared to 2021. Durango was in second place in zinc mining production, but reduced its production by 2.2% in 2022 compared to 2021, due to lower production in Santiago Papasquiaro of 16.3%. While Chihuahua was positioned in third place, where production remained unchanged compared to 2021; the largest reduction in state tonnage was due to the municipality of San Francisco del Oro. “By company, Newmont was the largest national zinc producer in 2022, with a 23% share. The four most important companies of national origin that participate in the extraction of this metal are: Industrias Peñoles, Fresnillo plc, Grupo Mexico and Minera Frisco, which represented 50% of the total last year”, the document reiterates. CAMIMEX assured that there are projects that will boost the growth of zinc production in Mexico in the next five years and that, if they are taken advantage of, they could place Mexico among the top five producers worldwide. The foregoing would also mean a recovery of the industry after the impact of the pandemic and the impact on mineral prices. Among the main projects with this metal content in Mexico, Grupo Mexico’s Buenavista Zinc in Sonora stands out, as well as the San Nicolas development of Agnico Eagle-Teck in Zacatecas.
Torex Gold Resources Inc., Sierra Madre Gold and Silver Ltd., Vizsla Silver Corp., and Prime Mining Corp., reported the best drilling intercepts in Mexico on the second week of July, 2023. Details are shown in the table below:
Canuc Resources Corporation acquired an additional 96.5051 hectares claim contiguous with the company´s existing claims at its San Javier project in Sonora. This claim covers prospective ground and the acquisition of this additional claim brings the company´s total contiguous claim position to 1,052.9 hectares comprised in 28 claims.
Colibri Resource Corporation submitted an application to the Mexican environmental agency (SEMARNAT) to drill up to 2,000 additional meters of RC in the Main Zone and West El Sahuaro at its Evelyn project in Sonora. The plan is to drill 1,200m at the Main Zone and 800m at the West Sahuaro Zone.
Monumental Minerals Corp., commenced a drilling program at its Jemi Rare Earth Element (REE) project in Coahuila. The program begun on the first drill target on the Veladora North prospect with the goal of testing areas with high concentrations of REE-mineralized dykes and sills at the surface. Monumental is planning to test a total of 6 drill targets to approximately 300 m each during this maiden campaign.
Prismo Metals Inc., provided an update of the current drilling program at its Palos Verdes project in Sinaloa. The Company has completed 1,239m of drilling in seven holes, with the 8th hole in progress. The company expects to release assay results from the first seven holes during the week of July 17.
Sierra Madre Gold and Silver Ltd., presented results from four additional holes drilled at its la Tigra project in Nayarit. Drilling highlights include hole LTDH005 with 2.49 g/t Au and 9 g/t Ag (2.60 g/t AuEq) over 20m, including 4.26 g/t Au and 14 g/t Ag (4.45 g/t AuEq) over 10.7m; and hole LTDH-006 with 7.11 g/t Au and 11 g/t Ag (7.25 g/t AuEq) over 5.95m, including 24.35 g/t Au and 10 g/t Ag (24.49 g/t AuEq) over 1.6m.
Aura Minerals Inc., reported Q2, 2023 production results from its Aranzazu Mine in Zacatecas. The company produced 25,192 Oz AuEq, a 4% lower compared to Q2, 2022 due to metal prices.
Endeavour Silver Corp., reported Q2, 2023 consolidated and mine-by-mine production results from their Mexican mine operations. The tables below show consolidated and mine-by-mine figures for the period Q2, 2023 and a comparative to Q2, 2022:
Fortuna Silver Mines Inc., reported Q2, 2023 production results from its San Jose Mine in Oaxaca. The company milled 194,887 tonnes of 168 g/t Ag and 1.02 g/t Au with metallurgical recoveries of 90.83% and 90.24% respectively to produce 957.3K Oz Ag and 5,778 Oz Au.
GoGold Resources Inc., reported Q2, 2023 production results from its Parral Tailings project in Chihuahua. The company produced 203.9K Oz Ag, 1,512 Oz Au, and 302.4K Lb Cu (375.1K Oz AgEq).
Orla Mining Ltd., reported Q2, 2023 production results from its Camino Rojo Mine in Zacatecas. The company mined 1,787,125 tonnes of 0.76 g/t Au and processed 1,729,374 tonnes of 0.77 g/t Au to produce 29,058 Oz Au. The company sold 29,773 Oz Au. As at June 30, 2023, Orla had a cash position of $114.5M.
Capstone Copper Corp., and Argonaut Gold Inc., commented that they will release their Q2, 2023 production results from their Mexican mine operations on August 2 and August 11 respectively.
Guanajuato Silver Company Ltd., commenced a high-grade pillars exploitation program at its la Valenciana Mine Complex in Guanajuato. The Valenciana Mines Complex has hundreds of small and large mining pillars located throughout an underground mine network that extends over 4km in strike length and 700m in vertical extent The Company estimates that that there are a minimum of 50 high-grade pillars that have the potential to be extracted as part of this program. Pillars are evaluated for their extraction suitability and mineral potential using the polygon method that calculates the volume, grade and tonnage for each pillar structure.
Gold Resource Corporation reported Q2 and H1, 2023 production results from Don David Gold Mine in Oaxaca. Figures are shown in the table below:
Guanajuato Silver Company Ltd., announced Q2, 2023 consolidated production results from their Mexican mine operations. Production results are generated from the Company’s wholly owned El Cubo Mines Complex, Valenciana Mines Complex, and San Ignacio Mine in Guanajuato, Mexico, and the Topia Mine in Durango, Mexico. Figures are shown in the table below:
GR Silver Mining Ltd., announced a non-brokered private placement of units to raise total gross proceeds of up to $1M. Each unit will consist of one common share of the company and one-half (½) of one common share purchase warrant. Each whole warrant will entitle the holder to purchase one common share of the company at a price of $0.12 at any time on or before that date which is 24 months after the closing date of the offering. Gross proceeds will be used for advancement of studies on the company’s Plomosas Project and for general working capital.
Bear Creek Mining Corporation communicated that it plans to conduct a non-brokered private placement of 16,725,000 common shares at a price of CAD $0.49 per share for gross proceeds of up to CAD $8.2M. Gross proceeds will be used for exploration and production improvements at its Mercedes gold mine Sonora, and for general corporate purposes.
Heliostar Metals Ltd., closed its previously announced private placement of 9,990,200 units of the company at a price of $0.37 per unit for gross proceeds of approximately $7M. Gross proceeds will be used to continue the exploration and development work on its Ana Paula project in Guerrero, as well as for general corporate working capital purposes.
ON RESOURCES AND DEVELOPMENT
GoGold Resources Inc., reported on the proposed SART Zn Circuit for its Parral Tailings Project in Chihuahua. Highlights include a saleable Zn precipitate to be added to the revenue stream; regeneration of approximately 750 tons of cyanide per quarter; anticipated to generate net increased cash flows of $1.5M per quarter; Zn Circuit capital expenditure estimated at $2M over 6 month construction period; project payback expected within 6 months after construction; construction of the Zn Circuit is independent of current SART operations, therefore no interruption to current operations is expected; Parral up to end of its mine life will be a producer of Ag, Au, Cu, and Zn.
Prime Mining Corp., released results from 9 holes drilled at the Noche Buena Zone located in the southeastern most end of the Central Area at its Los Reyes property in Sinaloa. Drilling highlights (estimated true widths reported) include hole 23NB-46 with 4.11 g/t Au and 68 g/t Ag (4.99 g/t AuEq) over 9.1m, including 31.40 g/t Au and 470 g/t Ag (37.48 g/t AuEq) over 1.1m; hole 23NB-39 with 1.23 g/t Au and 21 g/t Ag (1.50 g/t AuEq) over 14m, including 4.19 g/t Au and 76 g/t Ag (5.17 g/t AuEq) over 2m, and hole 23NB-40 with 1.86 g/t Au and 30 g/t Ag (2.25 g/t AuEq) over 5.7m, including 4.75 g/t Au and 68 g/t Ag (5.62 g/t AuEq) over 1.4m.
Sonoro Gold Corp., identified oxide mineralized target for resource expansion at its Cerro Caliche project in Sonora. “Surface sampling and detailed geologic mapping completed in the northwest region of the property demonstrate three linear structural corridor repetitions with anomalous gold, silver and base metal mineralization, as well as a fourth visually inferred corridor”. Geological mapping and sampling conducted on these areas suggest the potential expansion of the project’s oxide gold mineralized zones and resource.
Vizsla Silver Corp., announced results from 20 expansion drill holes targeting the Copala Resource Area at its Panuco project in Sinaloa. Drilling highlights (true width reported) include hole CS-23-297 with 310 g/t Ag and 2.32 g/t Au (445 g/t AgEq) over 18.5m; hole CS-23-290 with 565 g/t Ag and 3.48 g/t Au (760 g/t AgEq) over 5.05m, including 2,838 g/t Ag and 12.29 g/t Au (3,469 g/t AgEq) over 1m; hole CS-23-286 with 417 g/t Ag and 3.74 g/t Au (640 g/t AgEq) over 4.8m, including 1,585 g/t Ag and 16.2 g/t Au (2,568 g/t AgEq) over 0.68m; and hole CS-23-294 with 6,880 g/t Ag and 16.5 g/t Au (7,512 g/t AgEq) over 1m. These results expand the Copala mineralized footprint laterally by ~370m to the southeast and ~50m to the north.
Torex Gold Resources Inc., presented assay results from its ongoing drilling program at its El Limon-Guajes underground mine in Guerrero, including zones referred as El Limon Deep, Sub-Sill, Sub-Sill South, El Limon Sur Deep, and El Limon West (collectively El Limon-Guajes Underground). The best drill intercepts were encountered in hole LS-220 with 88.61 g/t Au, 21 g/t Ag, and 0.04% Cu (88.92 g/t AuEq) over 14.46m, including 75.53 g/t Au, 30 g/t Ag, and 0.04% Cu (75.97 g/t AuEq) over 2m, including 757.86 g/t Au, 126 g/t Ag, and 0.04% Cu (759.47 g/t AuEq) over 1.29m; hole LS-221 with 9.86 g/t Au, 42 g/t Ag, and 0.52% Cu (11.2 g/t AuEq) over 29.38m, including 25.21 g/t Au, 29 g/t Ag, 0.25% Cu (26.06 g/t AuEq) over4.55m, including 25.61 g/t Au, 108 g/t Ag, and 1.27% Cu (28.98 g/t AuEq) over 3.38m, plus 11.84 g/t Au, 74 g/t Ag, and 3.93% Cu (19.03 g/t AuEq) over 13.31m, including 21.18 g/t Au, 94 g/t Ag, and 3.72% Cu (28.29 g/t AuEq) over 5.5m. “These drill results, which include several higher-grade sub-intervals in addition to other impressive intersects, validate the high grade potential associated with the area that runs from El Limón Sur Deep to the La Flaca fault (600 m), known as the El Limón Sur Trend, with potential to extend deeper”.
ON DEALS AND CORPORATE ISSUES
Almaden Minerals Ltd., granted stock options to directors, officers, consultants and employees of the Company to purchase an aggregate 1,110,800 common shares in the capital of the Company at an exercise price of $0.28 per share expiring on July 10, 2028. (Ixtaca project, Puebla).
Azucar Minerals Ltd., granted stock options to directors, officers, employees, and consultants of the Company to purchase 1,060,800 common shares in the capital of the Company at an exercise price of $0.05 per share which expire on July 10, 2028. (El Cobre, Veracruz).
GR Silver Mining Ltd., announced Board and Management changes aiming to position the company for continued growth under current market conditions. The company announced the resignations of one of its Directors and the CFO, and announced the appointment of two new Directors to its Board of Directors, and the return to the company of Mr. Blaine Bailey as interim CFO (former CFO retired in May 2023) (Plomosas project, Sinaloa).
Monumental Minerals Corp., reported results from its annual general meeting of shareholders (Jemi Rare Earth Element project, Coahuila).
Colibri Resources Corporation reported results from its annual general meeting of shareholders (Pilar project, Sonora).
Regency Silver Corp., announced that it has engaged Kin Communications Inc., to assist with its investor relations activities, “including communicating with, and marketing to, potential investors, shareholders, and media contacts for a period of 12 months. In consideration for the services, the Company has agreed to pay Kin CAD $15K per month plus GST for the initial 12-month period. In addition, the Company has granted Kin stock options entitling it to purchase 500K of the Company’s common shares at a price of CAD $0.20 per share with a five-year term (Dios Padre project, Sonora).
ON SOCIAL RESPONSIBILITY
Industrias Peñoles S.A.B. de C.V., confirmed that it promotes a culture of environmental care in communities, for which the company periodically implements a series of activities with its collaborators and with the communities in which it operates. More than five thousand people from 42 communities close to the mine operations attended the activities, including: training for personnel and contractors; talks in educational centers of basic and upper secondary level; sports activities; reforestation of community properties; donation of endemic tree species from each region; cleaning days in the communities; and eco-fairs and recreational activities.