Highlights on the Fifth Week of November, 2017. Mineral Exploration in Mexico

During the 48th week of the year (November 27th to December 3rd, 2017), at least 33 press releases were announced by companies working in Mexico. ON MEXICO ISSUES: In Sonora, representatives of the State Congress proposed to form citizen committees to supervise the application of the Mining Fund (Fondo Minero). ON EXPLORATION: ten press releases from eight companies working in Mexico informed on exploration efforts during the week: In Sonora SilverCrest released high-grade results from drilling two different zones at its Las Chispas project; Azure Minerals released high-grade drilling results from its Sara Alicia Au-Co project, and updated on drilling progress at its Oposura property; Wolverine Minerals commenced exploration at Los Venados project; San Marco Resources is to complete an induced polarization survey at its 1068 porphyry copper project, updating also in the geological model of its Chunibas project. In Chihuahua, Evrim Resources completed phase I exploration at its Cerro Cascaron project, and is now in the drill targeting stage; Ethos gold optioned the Purisima property, and presented the project summary, which includes two previous drilling campaigns. ON MINING: Santacruz Silver presented its third quarter report; Marlin Gold presented financial results for the first nine months of the year, and an update on drilling on the Colinas target, at its La Trinidad property; U.S. Antimony informed that it now has the needed permits to construct a cyanidation plant at its mill in Guanajuato. ON FINANCING: Alix Resources, Canuc Resources and Millrock Resources are to conduct or closing non-brokered private placements of $750 K, $465 K and $1.6 M respectively; Mag Silver closed a non-brokered private placement for $48.16 M; SilverCrest is to raise C$6 M on a bought deal private placement; Primero Mining obtained an extension of its credit facility; Candelaria Mining is seeking a one year extension on the exercise period of over 12 M warrants. ON RESOURCES AND DEVELOPMENT: Consolidated Zinc recommenced extensional and infill resource definition drilling at its Plomosas mine. ON DEALS AND CORPORATE ISSUES: Argonaut Gold announced the closing of the acquisition of the Cerro del Gallo project in Guanajuato to Primero Mining for $15 M;  GFM Resources entered into an exploration and evaluation agreement with Minera Auricup on the Baviacora concession in Sonora; Magellan Gold completed the purchase of the SDA Mill to Rose Petroleum in Nayarit; Ethos Gold entered into an option agreement with Coztic Recursos Minerales on the Purisima property in Chihuahua.

ON MEXICO ISSUES

  • In Sonora, representatives of the State Congress proposed to form citizen committees to supervise the application of the Mining Fund (Fondo Minero). The proposal aims to give transparency to the application of the funds, and also a mean to control the infrastructure projects generated in the municipalities that are to receive the participation generated by the mining activity (Note of editor.- This is a pressing problem in many other States, where the application of the funds of a mining royalty introduced by the current Federal government is nowhere to be seen).

ON EXPLORATION

  • SilverCrest Metals Corp. released phase II drill results for the Babicanora vein at its Las Chispas property in Sonora. The latest results increase by 400 m the high-grade footprint of the Babicanora vein, which is now 1 km in length. True width (TW) intercepts: 3.2 m @ 27 g/t Au, 1,494 g/t Ag (including 0.7 m @ 137 g/t Au, 4,720 g/t Ag); 1.5 m @ 1.8 g/t Au, 101 g/t Ag; 3.8 m @ 5.6 g/t Au, 451 g/t Ag; 4.0 m @ 1.5 g/t Au, 101 g/t Ag; 3.1 m @ 5.1 g/t Au, 570 g/t Ag; 2.0 m @ 3.6 g/t Au, 452 g/t Ag; 3.6 m @ 4.2 g/t Au, 165 g/t Ag; 2.2 m @ 3.8 g/t Au, 388 g/t Ag.
  • Azure Minerals Ltd. released high-grade results on the maiden drilling on its Sara Alicia property in Sonora. Six holes for 480 m tested around and beneath historical underground mine workings that exploited high-grade Au and Co shoots in the 1930’s. Cobalt results for the last hole are still pending. Significant gold results comprise: 11.4 m @ 3.3 g/t Au; 5.5 m @ 5.1 g/t Au; 26.2 m @ 8 .6 g/t Au (including 12.6 m @ 14.9 g/t Au); 19.65 m @ 4.95 g/t Au; 8.45 m @ 1.2 g/t Au; 13.7 m @ 3.6 g/t Au. Significant cobalt intercepts comprise: 5.5 m @ 0.13% Co; 1.0 m @ 0.14% Co; 26.2 m @ 1.26% Co (including 6.35 m @ 3.57% Co); 4.7 m @ 0.11% Co; 20.6 m @ 0.13% Co (including 1.9 m @ 1.11% Co). This garnet-magnetite-sulfide skarn developed in limestone intruded by a porphyry contains a zone several meters in width with disseminated cobaltite (CoAsS) associated with abundant magnetite, and a wider, overlapping zone of gold mineralization.
  • Evrim Resources Corp. announced the completion of phase I exploration at its Cerro Cascaron project in Chihuahua. Highlights include: A 1.8 km long rich vein corridor defined by soil sampling, with up to 1.4 g/t Au; Soil sampling extended all veins by 600 m to 1.8 km in length, and two more veins were identified; Adit channel sampling results are 1.4 m to 3.3 m in width @ 231 to 542 g/t AgEq; Six subparallel veins were defined in an area 300 m x 900 m in the Ag-rich Cascarita zone. Drill targeting is underway.
  • SilverCrest Metals Inc. released surface and underground results from the second phase of drilling of the Las Chispas and Giovanni veins at Las Chispas, in Sonora. Highlighted results contain (true thickness, or TW) 2.1 m @ 2.3 g/t Au, 469 g/t Ag; 1.6 m @ 2.4 g/t Au, 516 g/t Ag; 1.5 m @ 13.2 g/t Au, 2,007 g/t Ag; 2.0 m @ 5.8 g/t Au, 1,191 g/t Ag; 4.0 m @ 18.6 g/t Au, 696 g/t Ag (including 0.8 m @ 92.6 g/t Au, 2,890 g/t Ag); 2.2 m @ 9.4 g/t Au, 1,369 g/t Ag. SilverCrest intends to deliver a maiden resource estimate during Q1, 2018.
  • Wolverine Minerals Corp. commenced an exploration program on the 1,500 hectares Los Venados property, in the Mulatos district, Sonora. Wolverine is to focus work on a felsic dome/silica breccia complex with intense alteration and brecciation accompanied by anomalous gold. Activities planned include rock and soil sampling, geological mapping and a 7.4 Km induced polarization survey.
  • Almadex Minerals Ltd. released results from the three first holes on the Raya Membrillo area on its El Cobre property in Veracruz. This area is part of the Villa Rica zone, which is two kilometers south from the Norte zone (where previous drilling was done). The three holes intersected a chalcocite dominant enriched copper zone right from the surface which locally is up to 186 m down hole. Results comprise: 69.5 m @ 0.10 g/t Au, 0.41% Cu (including 14.5 m @ 0.14 g/t Au, 1.2% Cu); 139.0 m @ 0.49 g/t Au, 0.24% Cu; 41.0 m @ 0.91 g/t Au, 0.42% Cu in one hole; 117 m @ 0.13 g/t Au, 0.55% Cu (including 15.9 m @ 0.51 g/t Au, 1.74% Cu) in the second hole; 159.5 m @ 0.22 g/t Au, 0.22% Cu (including 36.0 m @ 0.86 g/t Au, 0.16% Cu and 111.5 m @ 0.03 g/t Au, 0.27% Cu) on the third hole.
  • San Marco Resources Inc. provided the scope of exploration at its 1068 and Chunibas projects in Sonora. At the 1068 project, an undrilled porphyry Cu-Mo-Au system displays  phyllically altered and veined zones which extend 1 Km to the east and 400 m to the south from previously identified porphyritic rock with potassic alteration and a coincidental geochemical footprint on a grid rock sampling survey. An induced polarization survey is to be conducted during December. At Chunibas a new larger model involving a porphyry related breccia with gold values has been generated. Field mapping and prospecting is mostly completed, with a mineralization corridor extending 1.2 km based on mapping and a soil survey. New outcrops with epidote-calcite-specularite alteration bearing copper oxides have been found.
  • Azure Minerals Ltd. updated on the resource definition drilling at its Zn-Pb-Ag Oposura project in Sonora, where 51 of the planned 120 holes have been completed with 2,665 m. Many of Azure holes are either twinning or drilled close to historical holes, closely replicating the sulfide intercepts on those. Azure is aiming to conclude drilling by February 2018, and complete the maiden mineral resource estimate by March-April 2018.
  • Ethos Gold Corp. optioned the Purisima property in Chihuahua (see note on the deals section). An epithermal low sulfidation vein system is present over 1.5 Km of strike length and 200 m of width exposure. The property saw some drilling in 1997 and 1997-98 by Teck Resources and the SGM (Servicio Geologico Mexicano, or Consejo de Recursos Minerales at the time). Gold-bearing intervals were obtained on both programs, with only minor parts of the core obtained by SGM drilling having been assayed, although many areas contained chalcedonic quartz veining.

ON MINING

  • Santacruz Silver Mining Ltd. reported third quarter 2017 production and financial results. At Rosario in San Luis Potosi 46.9 K tonnes were processed @ 51 g/t Ag (241 g/t AgEq), recovering 85% Ag, to produce 26,274 Oz Ag, 328 Oz Au, 49 tonnes Pb, 449 tonnes Zn. At Veta Grande in Zacatecas, 28 K tonnes were processed @ 107 g/t Ag (174 g/t AgEq), recovering 64.5% Ag to produce 61,960 Oz Ag; 66 Oz Au, 99 tonnes Pb, 146 tonnes Zn. Production cost per tonne was 62.91, and a cash cost of $23.65 per AgEq Oz, AISC of $28.14 per AgEq Oz.
  • United States Antimony Corp. announced that SEMARNAT (Mexico environmental authority) has issued the permit for the construction of a cyanide leach plant for the Puerto Blanco mill in Guanajuato. This plant is designed to recover Au and Ag from the flotation mill tailings of the Los Juarez Au-Ag-Sb deposit in Queretaro. The ore grade is 1.1 g/t Au, 102 g/t Ag, 0.65% Sb, and the expected recovery  90% Au, 90% Ag, 70% Sb.
  • Marlin Gold Mining Ltd. presented financial results for the first nine months of 2017, period on which the company produced 29,995 Oz Au, and acquired the Gavilanes property from Santacruz Silver Mining Ltd. for $3.6 M. Revenue to the end of September was $58.2 M, holding $1.9 M in cash and finished gold, and $14.4 M in gold-in-process. Investment on Golden Reign Resources Ltd. stood at $12.7 M at quarter end. Principal on the loan owed to Wexford Capital LP. (Controlling shareholder) stood at US$38.9 M, with the maturity of the loan extended to January 2019.
  • Marlin Gold Mining Ltd. disclosed drilling results from the Colinas area, less than 1 km from the Taunus pit within its La Trinidad mine in Sinaloa. The drilling tested a structurally complex zone with low and high angle faults, along a projected structural corridor under post mineral cover. The significant core intervals comprise 11.65 m @ 0.61 g/t Au in the first hole and 6.00 m @ 0.35 g/t Au; 7.03 m @ 0.82 g/t Au; 6.00 m @ 10.57 g/t Au in the second hole. “The anomalous zones appear to be associated with quartz carbonate veinlets and ferruginous argillic zones, which are likely fault zones within andesitic breccias and tuffs. All intervals are oxide.”

ON FINANCING

  • Alix Resources Corp. is to conduct a non-brokered private placement to raise up to $750 K in gross proceeds (Agua Fria, Sonora).
  • Canuc Resources Corp. closed a non-brokered private placement with gross proceeds of $465 K. Proceeds are to be used to continue exploration of newly discovered breccia zones on El Tule claim block and other high grade structures (San Javier, Sonora).
  • Mag Silver Corp. announced the closing of a non-brokered private placement for gross proceeds of US$48.16 M (Juanicipio, Zacatecas).
  • Millrock Resources Inc. plans to conduct a non-brokered private placement planning to raise up to $1.6 million. Finder’s fee of 6% cash may be paid in connection with this financing (La Navidad, Sonora).
  • SilverCrest Metals Inc. entered into an agreement with a syndicate of underwriters for a bought deal private placement to raise gross proceeds of up to C$6 M. SilverCrest will pay the underwriters a cash commission of up to 6% of the gross proceeds (Las Chispas, Sonora).
  • Primero Mining Corp. announced that the company agreed with its lenders to an extension of its revolving credit facility and guarantee provided by Wheaton Precious Metals Corp. (San Dimas, Durango).
  • Candelaria Mining Corp. intends to make an application to the TSX to extend the exercise period of 12.6 M share purchase warrants by 12 months.

ON RESOURCES AND DEVELOPMENT

  • Consolidated Zinc Ltd. recommenced extensional and infill resource definition drilling at its Plomosas mine in Chihuahua. The first of two underground rigs was mobilized to Cuddy, level 5.4 to drill eight short holes before the Christmas break.

ON DEALS AND CORPORATE ISSUES

  • Argonaut Gold Inc. announced the closing of the acquisition of the 25,269 hectares Cerro del Gallo project in Guanajuato to Primero Mining Corp. for $15 M. Argonaut could recover up to $1.7 M of value added tax, and the companies acquired in this transaction include approximately $22 M in tax losses.
  • GFM Resources Ltd. entered into an exploration and evaluation agreement with Minera Auricup S. de R.L. on its Baviacora concession in Sonora. GFM has paid the outstanding mining duties of CAD$95 K for a six months right to explore the property and obtain a minimum 15% stake. If land access rights are not secured by Auricup on a four-month period, GFM has the right to demand full repayment, or to obtain a similar stake on in a different but equivalent mineral concession owned by Auricup. GFM drew on its facility with Metallorum Holding, S.A.P.I. de C.V., the corporation’s majority shareholder for this payment.
  • Magellan Gold Corp. completed the purchase of the SDA Mill to Rose Petroleum PLC. in Nayarit. Total consideration for the purchase was $1.5 M, with $1.0 M in cash and $500 K in Magellan stock, of which $100 K was paid in cash in June 2017. In August Magellan arranged $900 K in bridge loans to support the purchase.
  • Ethos Gold Corp. entered into an option agreement with Coztic Recursos Minerales S. de R.L. de C.V. to earn a 100% interest in the Purisima property in Chihuahua. Ethos Gold is to pay an aggregate of US$3.49 M and issue up to 3 M common shares to the property owner, in installments over 72 months, with the initial consideration of $45 K and 50 K shares due on signing. In addition, Ethos Gold is to pay outstanding mining duties of CAD$71 K and incur in exploration expenditures of not less than US$1 M within 72 months. The property owner is to retain a 2% NSR.

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

On the picture below, fine grained silica on boulders extracted from a farming field in Durango. Photo by Jorge Cirett.

Sta Catalina

Highlights on the Fourth Week of November, 2017. Mineral Exploration in Mexico

During the 47th week of the year (November 20th to November 26th, 2017), at least 32 press releases were announced by companies working in Mexico. ON MEXICO ISSUES: No relevant news. ON EXPLORATION: six companies informed on exploration efforts during the week: In Sonora Azure Minerals reported favorable metallurgical results from its Oposura project. In Chihuahua Monarca is to acquire the San Jose project; Mammoth Resources mobilized equipment to drill its Tenoriba property. In Sinaloa Starcore is to acquire the Santa Fe project, with an historical Au-Ag resource. Silver Bull released drill results from the sulfide zone at Sierra Mojada; Prize Mining is to acquire the Manto Negro stratabound copper project. Evrim Resources announced the acquisition of the Cuale high sulfidation property. In Veracruz Mexican Gold announced step-out drilling mineralization intercepts at Las Minas. ON MINING: Impact Silver presented its quarterly report. Marlin Gold informed on the mining program at La Trinidad in Sinaloa.  In Zacatecas, operations recommenced at the Santacruz Silver’s Veta Grande mill after the PROFEPA suspension. MX Gold informed on advance at the Magistral tailings project in Durango. Americas Silver informed the San Rafael mine is sourcing all ore treated in Cosalá. ON FINANCING: Telson Resources received $1 M from the exercise of warrants. Aztec Minerals is now trading on the USA. Primero Mining obtained an extension on its revolving credit facility. ON RESOURCES AND DEVELOPMENT: Leagold Mining reported more high-grade results from drilling at Bermejal Underground on its Los Filos property in Guerrero. Stroud Resources announced an updated resource estimate for its Santo Domingo Hostotipaquillo deposit in Jalisco. Almaden Resources released more drill results from the Ixtaca deposit in Puebla.  ON DEALS AND CORPORATE ISSUES: Soleil Capital and Goldplay Exploration are to amalgamate to create a precious metals exploration company focused in Mexico. Monarca Minerals signed a LOI to acquire the San Jose property in Chihuahua. Starcore entered into a LOI to acquire the Santa Fe property in Sinaloa. Camrova Minerals (Baja Mining) has seen its interest on El Boleo property (in Baja California) reduced to 7.3%. Bacanora Minerals is involved in a lawsuit over a 3% royalty on its Sonora lithium project. Golden Goliath has received the fifth payment on the option of its Uruachic properties. Prize mining is to acquire the Manto Negro project in Coahuila from Scion Mines.

ON MEXICO ISSUES

  • No Relevant News.

ON EXPLORATION

  • Azure Minerals Ltd. reported metallurgical results from its Oposura project in Sonora. The test returned over 70% and 80% recoveries respectively for Pb and Zn, producing a lead concentrate (>55% Pb, 360 g/t Ag) and a zinc concentrate (>55% Zn) with low levels of deleterious elements. More metallurgical studies will be undertaken on core material from the present drill campaign.
  • Monarca Minerals Inc. entered into a letter of intent (LOI) to acquire the San Jose property in Chihuahua. The 5,580 hectares project shows disseminations, stockwork and veins of skarn, gossan and altered intrusive rocks, with assays of up to 26.8 g/t Au, 161 g/t Ag, 6.5% Pb, 0.9% Zn, 4.2% Cu.
  • Starcore International Mines Ltd. entered into a letter of intent (LOI) with Eduardo de la Peña Gaitan and other owners, to acquire the 21,000 hectare Santa Fe project in Sinaloa. Previous exploration included 13,000 m of drilling in 2013, establishing an historical (Non 43-101 compliant) open pit resource of 285 K AuEq Oz in 5 M tonnes @ 89 g/t Ag, 0.56 g/t Au; or an underground resource of 225 K AuEq Oz in 1.28 M tonnes @ 266 g/t Ag, 1.83 g/t Au.
  • Mammoth Resources Corp. has mobilized a drill rig and a bulldozer to its Tenoriba property in Chihuahua. The company is to begin a 3,000 m drill program in 8 to 24 holes to test gold-silver targets on a 5 km strike length within a 15 square Km area of ubiquitous high sulfidation gold mineralization. The company announced the release of a technical report on the drill selection criteria.
  • Silver Bull Resources Inc. released results from four drill holes testing the sulfide zone below the previously defined oxide zone on its Sierra Mojada project in Coahuila. Highlighted results comprise 9 m @ 20.7% Zn, 1.0% Pb, 98 g/t Ag, 0.26% Cu, including 3.65 m @ 47.8% Zn, 2.5% Pb, 105 g/t Ag, 0.26% Cu; 3 m @ 537 g/t Ag, 3.9% Zn, 1.1% Cu, including 1 m @ 1,280 g/t Ag, 14.8% Zn, 2.3% Cu.
  • Prize Mining Corp. entered into an agreement (see the appropriate section below) to acquire the Manto Negro copper project in Coahuila. The project consists of seven mining concession covering 17,959 hectares. “The Project is identified as a stratabound Cu-Ag (+/- Pb-Zn) oxidized “Red Bed type” copper deposit… The Project area is hosted by Cretaceous carbonates and sandstones with exposures of mineralization being identified in numerous locations occurring in concordant layers ranging from 2 to 23 metres thick that are referred to as “Mantos”. Exposures of this mineralization have been identified over the 50-kilometre length of the Project.” The grades of historical sampling, trenching and drilling range from 0.73% to 5.55% Cu, 19 to 793 g/t Ag, 1.5 to 15% Pb and 0.3 to 3.64% Zn.
  • Mexican Gold Corp. announced that drilling to expand the high-grade dike contact mineralization previously encountered at its Las Minas project in Veracruz has successfully intersected long intervals of chalcopyrite-magnetite mineralization in five additional holes. Core length intervals include: 0 m; Cumulative 48.0 m; 20.3 m; cumulative 28.0 m, 28.0 m of chalcopyrite-magnetite mineralization.
  • Evrim Resources Corp. announced the acquisition and early exploration results of the 97 square kilometer Cuale gold project in Jalisco. The Cuale project was initially staked under the Callinan Royalties generative alliance (now owned by Altius Minerals Corp.) with formal title granted to Evrim for 100% ownership in November 2017. “Mineralization is found in moderately to strongly silicified rhyolite that contains up to 10% specular hematite in boxworks, interpreted to have formed after pyrite. Zones of pervasive silicification with strong clay alteration of phenocrysts trending to vuggy silica are observed..” Seven rock chip samples collected on a 500 m by 250 m zone returned from 0.19 to 4.56 g/t Au.

ON MINING

  • Impact Silver Corp. released its financial and production third quarter 2017 report. Production at the Guadalupe mill came primarily from the San Ramon Deeps, Cuchara and San Patricio mines. Highly variable ore from the San Ramon Deeps mine contributed to the lower grade mill feed @ 175 g/t Ag. Total silver production was 229.9 K Oz. Exploration work is focused on the Alacran, Alacran North, San Ramon North and El Paso vein. The company had a $6.0 M cash position at the end of the period.
  • Marlin Gold Mining Ltd. informed that most of the mining during the year at La Trinidad, in Sinaloa, focused on expanding and deepening the north side of the Taunus pit, while waste removal continues on the southern part of the pit. Up to the end of October, 35,500 Oz Au have been shipped. Drilling commenced at the Colinas target, 1.2 km south of the pit.
  • Santacruz Silver Mining Ltd. recommenced operations at its Veta Grande mill in Zacatecas, following the authorization by PROFEPA and SEMARNAT (Environmental agencies in Mexico).
  • MX Gold Corp. informed all major tankage at the Magistral tailings project in Durango has been installed, with the grinding mill scheduled for completion in Early December 2017, and the installation of the Merrul-Crowe circuit underway.
  • Americas Silver Corp. informed production from the San Rafael mine at the company’s Cosalá operations in Sinaloa is now the sole source of mill feed. The mine is currently producing over 1,000 tonnes per day (tpd) of the targeted 1,500 tpd, with a stockpile of over 25 k tonnes from San Rafael and further 50 K tonnes of ore from Nuestra Señora.

ON FINANCING

  • Telson Resources Inc. reported that all the warrants issued as part of a private placement on November 2015 have been exercised, resulting in CAD$1 M in proceeds (Tahuehueto, Durango; Campo Morado, Guerrero).
  • Aztec Minerals Corp. has been approved to commence trading in the USA as of Nov 20th 2017, on the OTCQB under the symbol AZZTF (Cervantes, Sonora).
  • Primero Mining Corp. has agreed in principle with its lenders to an extension to its revolving credit facility and guarantee provided by Wheaton Precious Metals Corp., previously maturing on November 23, 2017. The facility has been extended to December 1, 2017, providing the company to continue negotiations on its strategic review process and the possible divestiture of its San Dimas mine in Durango.

ON RESOURCES AND DEVELOPMENT

  • Leagold Mining Corp. reported additional high-grade results from the Bermejal Underground drill program at the Los Filos mine in Guerrero. “Bermejal Underground is at the northern end of a large intrusive body which has a total circumference of at least 15 kilometres…” The area being drilled extends 1,600 m along the strike of the intrusive contact and has a vertical depth extent of over 800 m. The drilling shows consistent oxide mineralization at carbonate/intrusive contacts either along the intrusive contact or below the intersection between the sill and the Bermejal intrusive contact. An updated resource estimate is expected before year end.

Leagold Bermejal Underground drilling1

  • Stroud Resources Ltd. updated the resource estimate in a new technical report on its Santo Domingo Hostotipaquillo project in Jalisco. The reports confirms the presence of 6.1 M tonnes @ 0.47 g/t Au, 101 g/t Ag and 3.48 M tones @ 0.39 g/t Au which contain 91.6 K Oz Au, 19 M Oz Ag as measured and indicated resources and 43.2 K Oz Au, 10 M Oz Ag as inferred resources. La Raya vein has a mineralized zone 35 m wide over 700 m along strike and 300 m of depth; and the Guadalupe vein is typically 15 to 30 m wide. Five additional veins have been identified for further exploration.
  • Almaden Minerals Ltd. released drill results from its ongoing exploration and development program for the feasibility study (FS) of the Ixtaca deposit at its Tuligtic project in Puebla. Two holes confirmed the discovery of an ore zone within a portion of the pit considered waste in the prefeasibility study (PFS). The holes intersected 23 m @ 0.45 g/t Au; 38.6 m @ 7.92 g/t Au, 15 g/t Ag (including 1 m @ 237 g/t Au, 232 g/t Ag); 20.4 m @ 0.89 g/t Au, 12 g/t Ag (including 7.0 m @ 2.07 g/t Au, 20 g/t Ag).

ON DEALS AND CORPORATE ISSUES

  • Soleil Capital Corp. entered into an amalgamation agreement with Goldplay Exploration Ltd. on a business combination transaction. “The purpose of the Proposed Transaction is the creation of a public, TSX Venture Exchange-listed, Mexico-focused, precious metals exploration company utilizing Goldplay’s mineral exploration strategy and experience related to the Rosario District..” in Sinaloa. Upon completion of the transaction the resulting issuer will be named Goldplay Exploration Ltd. and will be listed as a Tier 2 Mining Issuer on the Exchange.
  • Monarca Minerals Inc. entered into a letter of intent (LOI) to acquire the San Jose property in Chihuahua. The 5,580 hectares project shows disseminations, stockwork and veins of skarn, gossan and altered intrusive rocks. The terms of the LOI include a US$20 K payment on execution of the LOI (paid), US$20 K on execution of the definitive agreement, US$50 K on the first anniversary, and US100 K on the second anniversary, with the owners retaining a 2% NSR, of which one percent can be purchased by Monarca for US$100 k. Back taxes on the property of US$390 K will be paid over a period of time. Concession taxes per year are approximately US$46 K.
  • Starcore International Mines Ltd. entered into a letter of intent (LOI) with Eduardo de la Peña Gaitan and other owners, to acquire the 21,000 hectare Santa Fe project in Sinaloa. Starcore has up to 120 days to conduct due diligence work, and 30 days to complete the acquisition. Starcore is to issue 5 M shares to the owners upon signing, and will be released on four installments, and pay US$6 M as follows: US$2 M on execution; US$1 M on 18 months; US$1 M on 36 months; US$1 M on 48 months; US$1 M on 60 months.
  • Camrova Resources Inc. (Baja Mining Corp.) informed that its interest in Minera y Metalurgica del Boleo S.A. P.I, de C.V. has been reduced from 10% to 7.3%. This is a result of Korea Resource Corporation funding Camrova’s pro rata ($42.9 M) on cash calls amounting $429 M. The Boleo project is to annually produce 30 K tonnes Cu, 700 tonnes Co, 10,500 K tonnes Zn sulfate (Boleo, Baja California).
  • Bacanora Minerals Ltd. announced that it filed a statement of claim seeking to void ab initio, a 3% gross over-riding royalty held by the Estate of Colin Orr-Ewing over certain of Bacanora assets in Sonora. The company also announced amendments to the employment arrangements of certain members of the executive management firm.
  • Bacanora Minerals Ltd. has been served by the estate of the late Ian Colin Orr-Ewing with legal proceedings filed on September 20th September 2017, on a dispute regarding the ownership of 3% gross overriding royalties over Bacanora’s Sonora Lithium project and Magdalena Borates project. The Estate currently owns 8.15% of the common shares of Bacanora.
  • Golden Goliath Resources Ltd. has now received the fifth in a series of seven optional payments from Fresnillo PLC for the properties optioned to them in the Uruachic mining district in Chihuahua. This $100 K payment is to be followed by another $100 k due on May 2018 and a final US$2.3 M payment on November 2018, if Fresnillo is to keep the property. Golden Goliath plans to use the final payment to pay for the drill program on its 100% owned San Timoteo property in Chihuahua.
  • Prize Mining Corp. entered into an agreement with Scion Mines S.A. de C.V. to acquire 100% interest in the Manto Negro copper project in Coahuila, by issuing 6 M shares with a restricted lock-up and restricted resale period. Six million shares more are to be issued if the next milestones are met on a 43-101 technical report: 2 M bonus shares if the estimated copper resource is over 500 M Lb; 2 M bonus shares if the estimated copper resource is over 750 M Lb; 2 M bonus shares if the estimated copper resource is over 1 B Lb.

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

On the picture below, magnetite-chalcopyrite mineralization on drill core from Las Minas, Veracruz. Photo by Mexican Gold Corp. on its Nov 23rd, 2017 press release.

Core from Las Minas, Veracruz, photo from press release in Nov 2017

Highlights on the Third Week of November, 2017. Mineral Exploration in Mexico

During the 46th week of the year (November 13th to November 19th, 2017), at least 33 press releases were announced by companies working in Mexico, including four quarterly reports. ON MEXICO ISSUES: The Mexican environmental agency (PROFEPA) suspended Santacruz Silver Mining Ltd. operations at the Veta Grande mill in Zacatecas. ON EXPLORATION: six companies informed on exploration efforts during the week: In Sonora Aztec Minerals announced drilling is underway at the Cervantes project; Colibri has new drill targets at El Pilar project. In Chihuahua, Silver Spruce is on the drill permitting process stage for its Pino de Plata property; Endeavour released drill results with bulk mining potential at its Parral project. In Coahuila Alset Minerals  applied for over 400 K hectares of ground in mining concessions, looking for lithium brines. In Sinaloa, Santana Minerals disclosed high-grade historical assays from the Lupita prospect, in its Cuitaboca project.  ON MINING: Mag Silver, Leagold Mining, Primero Mining and Starcore International presented quarterly results. Vangold Mining informed of a sampling program to measure the backfill resource at the Pinguico property in Guanajuato. Telson Resources delivered the first concentrates from Campo Morado, in Guerrero. In Zacatecas, operations at Santacruz Silver’s mill in Vetagrande, Zacatecas were suspended by PROFEPA. ON FINANCING: This was definitely a good week, with six companies reporting the opening or closing of financing rounds: VVC Exploration, Over CA$2.6 M; MAG Silver, $48.16 M; Kootenay Silver, $4 M; Gainey Capital, $717.8 K (for a total of $1.96 M). ON RESOURCES AND DEVELOPMENT: Mexican Gold Corp released high grade results from four step out holes at its Las Minas property in Veracruz. Consolidated Zinc is modifying its plans to mill over 250 K tonnes per annum at its Plomosas property in Chihuahua. Silver Bull released high-grade Ag-Cu drill results from drilling the sulfide zone at its Sierra Mojada property in Coahuila. Oceanus disclosed high-grade results from the first hole on its new drill campaign at El Tigre, in Sonora.  ON DEALS AND CORPORATE ISSUES: Argonaut Gold is to acquire the Cerro del Gallo property in Guanajuato, from Primero mining, for US$15 M, including VAT.

ON MEXICO ISSUES

  • PROFEPA (Mexico’s environmental enforcement agency) temporarily suspended operations at the Vetagrande mill in Zacatecas, citing inadequate atmospheric emission controls. Santacruz Silver Mining Ltd. failed to present an environmental permit, equipment maintenance registers or an inventory of atmospheric emissions. Primero Mining received VAT refunds from the SAT (Servicio de Administracion Tributaria) of $4.6 M during Q3, and $10.6 M during October.

ON EXPLORATION

  • Alset Minerals Corp. staked and filed mineral claims for over 400 K hectares of prospective lithium-rich salars in Coahuila. The claims contain the dry lagoons of Mayran (one of the biggest dry lakes in Mexico), Viesca and Los Remedios, in an area of 150 km (N-S) by 125 km (E-W). At Viesca there is history of commercial brine extraction by Sulfatos de Viesca.
  • Aztec Minerals Corp. along with partner Kootenay Silver Inc. announced that phase one of the drilling program is underway at its Cervantes project in Sonora. The program consists of 3,000 m on 14 to 17 holes to test: 1) A gold anomaly in soil and rock chip surveys 600 m by 900 m over quartz-feldspar porphyry and intrusive breccias at the California prospect. 2) Au-Cu mineralization on the Jasper target. 3) A geophysical chargeability/resistivity anomaly.
  • Colibri Resource Corp. is changing the mineralization model at its El Pilar project in Sonora. The mineralization is hosted in andesites along the contact with a granodiorite, but recent drilling confirmed that a supposed strike slip fault is not present, increasing the potential for gold carrying pyrite rich zones associated to two structures in the andesites. New drill targets have been defined, with chargeability anomalies also to be tested.
  • Silver Spruce Resources Inc. has restarted the permitting process for initiating a drill program at its Pino de Plata project in Chihuahua. Drill companies have visited the 397 hectares property and are to submit bids on the drilling program that is to test three zones. The El Terrero target consists of disseminated epithermal mineralization in intrusive rocks, with grab samples of up to 557 g/t Ag. The Teodora vein targets have verification samples with up to 553 g/t Ag. The Santa Elena target area shows replacement Ag-Pb-Zn-Cu mineralization.
  • Endeavour Silver Corp. discovered additional potential bulk tonnage silver mineralization in the Palmilla area of its Parral project in Chihuahua. “ Endeavour drilling has outlined lower grade, bulk tonnage mineralization above and along strike of the old workings that may be amenable to open pit mining”. The true width mineralized intervals averaged 10.1 m @ 92 g/t Ag, 0.2% Pb, 0.4% Zn (Each mineralized interval on one of the Capuzaya, Palmilla and La Luz veins). Endeavour has already an historic resource at the Veta Colorada vein, and is continuing with drilling at the San Patricio vein. A new resource for the Parral property is to be released by Q1, 2018.
  • Santana Minerals Ltd. disclosed a review of historic data that shows high-grade silver mineralization in the La Lupita prospect, part of its Cuitaboca project in Sinaloa. Of a total of 24 samples collected by Peñoles in a 130 m long stretch, nine returned values between 200 g/t Ag and 786 g/t Ag, with an average (on the 24 samples) of 220 g/t Ag, 0.3 g/t Au. Previously reported saw channel sampling by Santana on the same zone returned 7 m @ 161 g/t Ag, 1.1 m @ 158 g/t Ag, 2.9 m @ 281 g/t Ag, 1.65 m @ 514 g/t Ag.

ON MINING

  • Vangold Mining Corp. started a grading and sampling campaign on the surface 200 K stockpile at its Pinguico property in Guanajuato. The company also intends to clean the underground workings in order to access and sample the mine back fill, which they estimate to have the potential to reach 500 K tonnes. The back fill comprises material that did not reach the 15 g/t Au cut off that was being mined in 1913. Both above ground and underground material is to be tested metallurgicaly to define processing methods.
  • Mag Silver Corp. released its third quarter 2017 financial results. During the quarter underground development has been intensified to allow for a planned increase to 4,000 tpd in mining rate, permitting is in process for the planned production increase, and a 20,000 m exploration drill program commenced in July, with three rigs on the surface and one underground. An independent feasibility study (FS) is due by early 2018. The company had $121.6 M in cash and cash equivalents at the end of the period. A new expanded resource estimate was presented on November 7, 2017.
  • Telson Resources Inc. delivered the first zinc concentrates produced at its Campo Morado mine in Guerrero, to Trafigura’s warehouse in Manzanillo, Colima. Up to the first week of November, Telson has produced more than 800 tonnes of zinc concentrate and more than 250 tonnes of lead concentrate.
  • Leagold Mining Corp. reported Q3 2017 production from Los Filos in Guerrero. During the quarter 7,6 M tonnes were moved and 2.1 M tonnes of ore mined @ 0.67 g/t Au, 98 K tonnes were mined from underground @ 7.43 g/t Au, with a recovery rate of 70% (estimated at 80% from underground material) to produce 47,766 Oz Au at an all-sustaining cost (AISC) of $993. An expanded resource estimate for the Bermejal underground deposit was released, and 38,581 m of a 56,000 m drilling campaign were also completed. The company held $52.9 M of cash and cash equivalents at the end of the period.
  • Primero Mining Corp. reported operating and financial results for the third quarter 2017. At San Dimas in Durango, 110.2 K tonnes were mined and 114.7 K tonnes milled (1,246 tpd) @ 4.78 g/t Au, 301 g/t Ag, recovering 97% Au, 94% Ag, to produce 17,070 Oz Au, 1.1 M Oz Ag (or 20,537 Oz AuEq), at cash cost $884 AuEq and AISC of $1,117 per ounce. Production at San Dimas was affected by persistent issues with underground equipment reliability which impacted development and stoping, and a strike by unionized workers over the negotiation of the 2016 annual workers’ bonus. Cash at end of period was $14,9 M, which increased to $22 M by the end of October.
  • Starcore International Mines Ltd. announced production results for the second quarter of fiscal 2018, ended on October 31st, 2017. During the quarter 69.7 K tonnes were milled @ 1.56 g/t Au, 13.6 g/t Ag, recovering 80.9% Au and 54% Ag, to produce 2,739 AuEq Oz. the Altiplano Facility received 137.2 K tonnes of concentrate and 311 Kg of precipitates containing 197 Oz Au, 13,650 Oz Ag. Also during the quarter 94 Oz Au and 20.3 K Oz Ag were sold.
  • Santacruz Silver Mining Ltd. reported that the Mexican Environmental Protection Agency (PROFEPA) requested that the subsidiary operating the Veta Grande mill hold the environmental license directly on its name. The documents were submitted on November 8th, and the company expects the imminent resumption of operations at the mill. The mining operations and mill maintenance have continued through this time period.

ON FINANCING

  • VVC Exploration Corp. issued last week shares and warrants for CA$1.4 M, pursuant to the first closing, shares and warrants were issued for gross proceeds of CA$1.26 M. Insiders of the company subscribed for an aggregate of CA$200 K (Samalayuca, Chihuahua).
  • MAG Silver Corp. announced a non-brokered private placement with some shareholders for up to $44 M in gross proceeds. Later on the week MAG informed that the offering was increased for total gross proceeds of $ $48.16 M. MAG intends to use the net proceeds of the offering to fund exploration and development of the Juanicipio Project, in Zacatecas, and for working capital and general corporate purposes (Juanicipio, Zacatecas).
  • Kootenay Silver Inc. announced the opening of a non-brokered private placement of up to $4 M (La Cigarra, Chihuahua).
  • Gainey Capital Corp. closed the second and final tranche of its previously announced private placement, for gross proceeds of $ 717.8 K. Total gross proceeds for the offering are $1.96 M (El Colomo, Nayarit).
  • Mexican Gold Corp. informed its largest share holder, Palisade Global Investments Ltd. exercised warrants for gross proceeds of $833 K (Las Minas, Veracruz).

ON RESOURCES AND DEVELOPMENT

  • Mexican Gold Corp. released results from four step-out holes at its Las Minas project in Veracruz. The highlighted intervals include: 54.0 m @ 3.9 g/t Au, 13 g/t Ag, 1.7% Cu (including 38 m @ 5.4 g/t Au, 17 g/t Ag, 2.2% Cu); 19.0 m @ 2.1 g/t Au, 0.2% Cu (including 5.0 m @ 4.6 g/t Au, 0.4% Cu); 21.35 m @ 1.3 g/t Au, 0.7% Cu (including 11.35 m @ 2.2 g/t Au, 1.0% Cu) in one hole, and 9.0 m @ 0.9 g/t Au, 11 g/t Ag, 1.4% Cu; 8.0 m @ 1.3 g/t Au, 0.4% Cu; 12.80 m @ 0.8 g/t Au, 8 g/t Ag, 1.2% Cu. The drilling increased the strike width of the initial resource to 365 m (a 65 m increase) by 395 m. The rig is back to this zone to commence infill and resource expansion drilling near the drill intercept outlined above.
  • Consolidated Zinc Ltd. is expanding the plans outlined in the recent scoping study on its Plomosas property in Chihuahua. The company is now evaluating the opportunity targeting over 250 K tonnes per annum over a mine life of 7 to 10 years.
  • Silver Bull Resources Inc. released results from the sulfide zone at its Sierra Mojada property in Coahuila. Highlighted drill intercepts comprise: 16 m @ 396 g/t Ag, 1.6% Cu (including 5 m @ 379 g/t Ag, 3.2% Cu; 6 m @ 610 g/t Ag, 1.1% Cu); 7 m @ 370 g/t Ag, 0.8% Cu; 4.8 m @ 352 g/t Ag, 0.6% Cu. The sulfide zone sits below the current Sierra Mojada’s oxide resource, along a steeply dipping fault, remaining open to depth and over 3 km along strike.
  • Oceanus Resources Corp. reported results from the first hole of the current drill campaign in the Caleigh vein at its El Tigre property in Sonora. The hole returned 0.75 m @ 10.9 g/t Au, 2,830 g/t Ag, encountering also the low grade hanging wall alteration zone adjacent to the vein, with 25.75 m @ 0.65 g/t Au, 92 g/t Ag. “The true width has not been calculated for the intercepts, however true width is generally estimated at 75% to 90% of drilled width.”

ON DEALS AND CORPORATE ISSUES

  • Argonaut Gold Inc. reached an agreement with Primero Mining Corp. regarding the acquisition of the Cerro del Gallo project in Guanajuato. Under the deal Argonaut is to purchase all the shares of the Primero Mining subsidiary that holds the property for a cash consideration of $15 M (including VAT), payable on closing.

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

On the picture below, beautifully banded epithermal quartz vein from a prospect on the Durango Altiplano. Photo by Jorge Cirett.

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Highlights on the Second Week of November, 2017. Mineral Exploration in Mexico

During the 45th week of the year (November 6th to November 12th, 2017), at least 31 press releases were announced by companies working in Mexico, including nine quarterly reports. ON MEXICO ISSUES: No relevant news. ON EXPLORATION: seven companies informed on exploration efforts during the week: In Sonora Millrock finalized the first phase of exploration at its Navidad project with rock chip sampling and geophysical surveys; Sonoro provided an initial description and work plan at the newly optioned Calera property. In Chihuahua Consolidated Zinc released high-grade Zn-Pb rock chip results 2.5 km from its resource area at Plomosas. In Coahuila Discovery Metals presented high-grade Ag-Pb-Zn rock chip and channel results from its Puerto Rico and La Kika properties. Southern Silver informed on exploration work at its Creston del Oro, Biznagas and Los Lenchos concessions. In Hidalgo, Prospero Silver reported drilling results from the first drill testing ever of the Petate project. ON MINING: Fortuna Silver, Golden Minerals, Avino Silver, Pan American Silver, Premier Gold, Alio Gold, Torex Gold and Sierra Metals presented third quarter results. Torex Gold informed in three press releases on the work stoppage at its  El Limon – Guajes mine in Guerrero, resulting from the dispute between two unions. ON FINANCING: Advance Gold and Mammoth Resources are going ahead with non-brokered private placements for up to $200 K and $720 K respectively; Excellon closed a public bought deal offering, raising $14.8 M. ON RESOURCES AND DEVELOPMENT: Southern Silver released results from its last hole of the 2017 campaign, with two high-grade Zn intercepts.  ON DEALS AND CORPORATE ISSUES: Discovery Metals informed of the sudden death of its Vice-president Exploration, Peter Drobeck. Goldcorp informed that the sale of the Camino Rojo project in Zacatecas to Orla Mining has been completed. Sierra Metals informed of the appointment to the board of Jose Vizquerra. Magellan Gold informed the purchase of the SDA mill in Nayarit is approaching completion. Sable Resources announced the signing of definitive agreements on the acquisition of BlueJoint Resources, which has an extensive land position in Mexico. Sonoro Resources optioned the Calera property in Sonora.

ON MEXICO ISSUES

  • No Relevant News.

ON EXPLORATION

  • Southern Silver Exploration Corp. disclosed exploration work on its Creston del Oro, Biznagas and Los Lenchos claims, which are contiguous to its Cerro Las Minitas property in Durango. Over 1400 rock chip and float samples have been collected, revealing a NW-SE corridor greater than 12 km in length, anomalous in precious metals and pathfinder elements. Targeting for an early 2018 RC drill campaign is to base on the multiple distinct clusters and trends seen.
  • Discovery Metals Corp. released results from 32 channel samples at its Puerto Rico project in Coahuila. The samples were collected on the southern part of the project, from the Puerto Rico, San Jose and Zaragoza mines, in manto style mineralization, as well as high-angle breccias, fracture zones and chimney features. Results include 0.8 m @ 202 g/t Ag, 22.3% Pb, 0.7% Zn, 0.16% Cu; 2.0 m @ 242 g/t Ag, 25.2% Pb, 6.3% Zn, 0.19% Cu; 3.5 m @ 506 g/t Ag, 3.5% Pb, 21.9% Zn, 0.11% Cu at Zaragoza; 10.5 m @ 25 g/t Ag, 1.6% Pb, 18% Zn, 0.15% Cu; 4.0 m @ 519 g/t Ag, 29.7% Pb, 17.3% Zn, 0.44% Cu; 3.0 m @ 1,480 g/t Ag, 31.9% Pb, 0.1% Zn, 0.41% Cu at San Jose; and 4.0 m @ 230 g/t Ag, 15.0% Pb, 26.3% Zn; 1.5 m @ 316 g/t Ag, 23.0% Pb, 15.0% Zn; 5.0 m @ 25 g/t Ag, 1.8% Pb, 31.1% Zn; 6.0 m @ 615 g/t Ag, 20.8% Pb, 24.3% Zn; 1.6 m @ 477 g/t Ag, 11.8% Pb, 2.4% Zn, 11.2% Cu at Puerto Rico.
  • Discovery Metals Corp. released panel and channel sampling results from its La Kika project in Coahuila. Numerous prospect pits are scattered over a 200 by 200 m area, showing high-grade Ag-Pb-Zn carbonate replacement mineralization as subhorizontal mantos and subvertical chimney-like structures with massive oxides of Zn-Pb-Ag-Cu. Results include 0.7 m @ 600 g/t Ag, 30.1% Pb, 8.3% Zn, 0.44% Cu; 0.5 x 1.0 m panel @ 35.5% Zn, 1.2% Cu; 1.0 x 0.5 m panel @ 160 g/t Ag, 10.0% Pb, 16.7% Zn, 0.24% Cu; 0.6 m @ 258 g/t Ag, 11.2% Pb, 12.4% Zn; 1.0 x 0.5 m panel @ 420 g/t Ag, 18.9% Pb, 1.2% Zn.
  • Consolidated Zn Ltd. announced results of first pass rock chip sampling at the Alfonsitos prospect, 2.5 km NW from its Plomosas mine in Chihuahua. Grades of up to 18.5% and 24.3% Zn+Pb were obtained from workings and outcrops respectively. Alfonsitos is the first of several prospects identified by reconnaissance exploration and geophysical surveys.
  • Millrock Resources Inc. reported that its first phase of exploration at La Navidad project, targeting orogenic style mineralization, is now complete. A 1,082 samples soil survey has returned 248 samples with values greater than 50 ppb Au, while 83 rock chip samples of a total of 575 returned greater than 0.5 g/t Au. A ground magnetic survey covering 82 line-km and a 20 km induced polarization survey were also carried out in the property. Three prospects have been identified, Anchor, Horseshoe and Cobre, with rock sampling returning 24 m @ 0.9 g/t Au; 12 m @ 1.1 g/t Au; 14 m @ 0.8 g/t Au. A 2,000 m drill program on nine holes is in progress.
  • Prospero Silver Corp. provided a preliminary update on the first stage reconnaissance drilling at its Petate property in Hidalgo. Eight shallow holes have been completed with the aim to establish structure and better aiming at deeper targets. The initial holes were drilled at the Apartadero zone, which shows multiple jasperoid outcrops in limestone. Mineralized intercepts include 18.5 m @ 0.8 g/t Au, 5 g/t Ag; 3.4 m @ 3.5 g/t Au, 2 g/t Ag.
  • Sonoro Metals Corp. provided an initial description of its newly optioned Calera project in Sonora (see below on the deals section). “Large zones of disseminated pyrite replacement in the shallow dipping calcareous shale units are extensive with coincident regolith gold placer within the concessions. Local altered felsic dikes cut the mineralized meta-sedimentary rock units and may be associated with mineralization”.  Initial work is to surface sample the concession area, where multiple old prospect pits are located, and a soil sample program on east-west lines to identify targets for further exploration.

ON MINING

  • Torex Gold Resources Inc. Informed that on November 3rd , a group of approximately 20 local unionized workers illegally blockaded the entrance to the El Limon – Guajes mine in Guerrero. The group of workers demands a change of union, same that can only be accomplished through a government sanctioned process validated by the majority of unionized workers in an assembly. The company shut down the processing plant in an orderly manner, and stated that during the stoppage there will be a focus on maintaining environmental protections.
  • Torex Gold Resources Inc. reported that on November 6th a group of approximately 35 persons entered the El Limon – Guajes mine site in Guerrero and threatened the site staff. Care and maintenance activities resumed on November 8th. The Company has requested to the appropriate authorities that they take action to restore law and order that has been disrupted by a conflict between two unions. “Excellent political support has been received from State and Federal governments to advance the legal charges and to find a negotiated resolution to the dispute between the two syndicates.”
  • Fortuna Silver Mines Inc. reported its financial results for the third quarter 2017. During the period 263.7 K tonnes were milled (3,038 tonnes per day, or tpd) @ 229 g/t Ag, 1.71 g/t Au, recovering 91% Ag, 91% Au to produce 1.77 M Oz Ag, 13,248 Oz Au at all-in sustaining cost of $7.75 per Oz Ag. At the end of September the company had cash and cash equivalents for $195.8 M.
  • Golden Minerals Co. presented its third quarter 2017 results. During the period Golden expanded the Santa Maria project in Chihuahua by acquiring adjacent claims, and begun two 1,500 m drill programs on Santa Maria and the Velardeña properties in Durango. The lease on its oxide mill to Hecla was extended to 2020. The company spent $6.2 M and received $8.6 M during the first nine months of the year, ending the third quarter with $5.0 M in cash and cash equivalents.
  • Avino Silver Gold Mines Ltd. announced the consolidated financial results for the third quarter 2017. During the period 138.2 K tonnes were milled to produce 368.4 K Oz Ag, 2,673 Oz Au, 1.1 M Lb Cu at cash cost $9.74 per AgEq Oz, and AISC $11.25 per AgEq Oz. The company had revenues of US$8.4 M during the period, with US$3.8 M in cash and US$4.0 M in short term investments by the end of September.
  • Pan American Silver Corp. reported unaudited net earnings for Q3 2017, including figures from its Mexican operations. During the period the company produced 1.83 M OzAg, 1,210 Oz Au at La Colorada, in Zacatecas, and 0.97 M OzAg, 24,960 OzAu at Dolores in Chihuahua, at cash cost of $1.71 and ($0.57) per AgOz, net of by-product credits, respectively. At Dolores, ramp-up of the new pulp agglomeration plant started in August, with the plant processing 120 K tonnes of high grade ore in Q3. Heap leach stacking rates reached 20 K tpd, and underground mining is to commence before the end of 2017. At La Colorada mining and processing rates averaged 1,906 tpd, exceeding design rates of 1,800 tpd.
  • Premier Gold Mines Ltd. disclosed third quarter 2017 results, including figures from its Mercedes mine in Sonora. At Mercedes 156.4 K tonnes were milled @ 3.88 g/t Au, 36 g/t Ag, to produce 18,564 Oz Au, 82.8 K Oz Ag. Recovery rates were 95.4% Au 45.2% Ag, with co-product cash cost of $793 per OzAu, co-product AISC of $998 per Oz Au, co-product cash cost of $10.35 per OzAg, co-product AISC of $13.49 per OzAg. Up to ten underground and surface drill rigs were operating during the period. At the end of the period the company held $171.8 M in cash and cash equivalents.
  • Alio Gold Inc. provided third quarter 2017 results. At its San Francisco mine in Sonora, Alio produced 19,429 Oz Au at cash cost $884 and all-in sustaining cost of $1,104 per OzAu. The revitalization plan of the pit includes moving 22 M tonnes of waste from the San Francisco Main and La Chicharra pits. Also during the period the company completed a bought deal financing for C$50.4 M, received the land use permit for its Ana Paula project in Guerrero, where a decline was permitted and contracts awarded. At the end of September the company had $68.5 M in cash and short term investments.
  • Torex Gold Resources Inc. presented financial results for the third quarter 2017. During the quarter the El Limon-Guajes mine moved 8.7 M tonnes, averaging 94.4 K tpd, with the plant processing 1.15 Mt (12,522 tpd) @ 2.35 g/t Au to produce 67,333 Oz Au at a gold recovery rate of 87%. Total cash cost was $728 per OzAu and AISC of $1,035 per OzAu.
  • Sierra Metals Inc. reported consolidated results for the third quarter 2017, including information from its Mexican operations. At Bolivar in Chihuahua, mine development totaled 942 m, while at Cusi, also in Chihuahua, mine development totaled 1,033 m, and 1,164 m of infill drilling were carried out. Cash cost per CuEq Lb was $1.69 and an AISC per CuEq Lb of $3.32 at Bolivar; At Cusi cash cost per AgEq Oz was $21.95 and AISC per AgEq Oz was $51.93. On exploration, 14,082 m were drilled atBolivar (992 m at El Gallo; 7,168 m at Bolivar NW; 418 m at Chimney 2; 5,504 m at Bolivar W). At the end of the period Sierra Metals had $28.6 M in cash and cash equivalents, and a net debt of $39.9 M.
  • Fortuna Silver Mines Inc. disclosed consolidated results for the third quarter 2017, including figures from its San Jose mine in Oaxaca. At San Jose 263.7 K tonnes were milled (3,038 tpd) @ 229 g/t Ag, 1.71 g/t Au, with recoveries of 91% Ag, 91% Au, to produce 1.77 M Oz Ag, 13,248 Oz Au. Cash cost was $1.53 per OzAg and AISC was $7.75. The company had $195.8 M in cash, cash equivalents and short term investments by the end of the period.

ON FINANCING

  • Advance Gold Corp. is to undertake a non-brokered private placement to raise up to $200 K in gross proceeds (Tabasqueña, Zacatecas).
  • Excellon Resources Inc. closed the previously announced bought deal public offering, for aggregate gross proceeds of $14.8 M. With the purchase of $2.5 M in shares, Eric Sprott now owns a 19.2% interest in the company on a non-diluted basis (Platosa, Durango).
  • Mammoth Resources Corp. announced a non-brokered private placement, intending to raise up to $720 K to drill its Tenoriba property in Chihuahua.

ON RESOURCES AND DEVELOPMENT

  • Southern Silver Exploration Corp. released results from the last hole drilled in 2017 on its Cerro Las Minitas project in Durango. The hole intersected 2.1 m (estimated true width, TW) @ 88 g/t Ag, 0.2% Pb, 10.3% Zn and 1.5 m @ 30 g/t Ag, 0.1% Cu, 20.7% Zn. Southern Silver is in the process of reviewing, modelling and compiling the 2017 drill results aiming to produce an updated mineral resource estimate in the coming weeks.

ON DEALS AND CORPORATE ISSUES

  • Discovery Metals Corp. informed the sudden passing away of Peter Drobeck, its vice president of exploration. Peter Drobeck had a career of over 35 years in exploration, having worked for companies like Silver Standard, AuRico Gold, Electrum USA and Newcrest, before joining Discovery Metals earlier in 2017 (Note of compiler.- Peter worked for decades in Mexico for different companies, leaving many friends in the industry. He will be missed greatly).
  • Goldcorp Inc. announced the completion of the sale of the Camino Rojo project in Zacatecas to Orla Mining Ltd., following the receipt of Mexican anti-trust approval. Goldcorp acquired 19.9% of Orla’s shares. The Camino Rojo project has 1.7 M Oz Au in reserves and 7.5 M Oz Au in measured and indicated resources.
  • Sierra Metals Inc. appointed Jose Alberto Vizquerra-Benavides to its board of directors, and Sierra Metals Audit Committee. Mr. Jose Vizquerra is currently executive vicepresident of strategic development and a director at Osisko Mining Inc. (Cusi and Bolivar, Chihuahua).
  • Magellan Gold Corp. informed that the purchase of the SDA mill in Nayarit from Rose Petroleum PLC is nearing conclusion. The parties anticipate the closing to occur during November 2017.
  • Sable Resources Ltd. announced that it has entered into definitive agreements for the acquisition of BlueJoint Resources Inc. and Western Canada Greenfields Group Inc. “the Acquisitions will be structured in the form of a three-cornered amalgamation, pursuant to which each of BlueJoint and WCG will amalgamate with a wholly-owned subsidiary of Sable”. BlueJoint systematically explored 1.74 million hectares in 10 target areas considered highly prospective and underexplored for precious metal epithermal mineralization in Mexico (Vinata, Chihuahua; Escarpe, Queretaro).
  • Sonoro Metals Corp. entered into an option agreement with a private Mexican resident to acquire the 144 hectares Calera project in Sonora. The deal portrays the payment in six years of $1 M in six installments of increasing cost, and a 2% NSR that can be bought by Sonoro for $650 K at any time

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

On the picture below, beautifully banded epithermal quartz vein from a prospect on the Durango Altiplano. Photo by Jorge Cirett.

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Highlights on the First Week of November, 2017. Mineral Exploration in Mexico

During the 44th week of the year (October 30th to November 5th, 2017), at least 33 press releases were announced by companies working in Mexico, including nine quarterly reports. ON MEXICO ISSUES: No relevant news. ON EXPLORATION: seven companies informed on exploration efforts during the week: In Sonora SilverCrest informed on metallurgical test results from drill core material of its Las Chispas property; Riverside continues with ground magnetics, an IP survey and soil sampling on its Glor project, funded by Centerra; Minaurum released good drilling results from its Alamos property. In Chihuahua Golden Goliath continues exploration at San Timoteo; Prospero Silver prepares to drill its Bermudez project. In Sinaloa, Auxico released metallurgical results from its Zamora property. In Zacatecas Defiance Silver commenced a two rig drill campaign on the Veta Grande vein in its San Acacio project. ON MINING: Great Panther, Grupo Mexico, Endeavour Silver, Americas Silver, Excellon, Alamos Gold, McEwen Gold, Argonaut and First Majestic reported third quarter results. In Sonora, Corex Gold is testing different crushing sizes for the heaps, and received the first compensation for gold produced at its Santana property. In Zacatecas, Starcore removed all senior personnel from its Matehuala plant. ON FINANCING: San Marco completed a private placement for $1.26 M and Vangold is to raise up to $1.57 M with a non-brokered private placement. Telson signed a $15 M credit facility with Trafigura. GoGold is to repay a $46.5 M debt and a $7.5 M credit with the proceeds of the sale of Santa Gertrudis. ON RESOURCES AND DEVELOPMENT: Starcore highlighted the increase in resources, metallurgical testing and work on the scoping study on its Plomosas property. Almaden reported grades on one more in-fill hole at its Ixtaca property. Bacanora secured access to its Sonora property. Hecla provide high-grade exploration results on its San Sebastian mine.  ON DEALS AND CORPORATE ISSUES: Vangold executed the purchase agreement of land on its Pinguico property. GoGold announced the completion of the sale of the Santa Gertrudis project to Agnico Eagle.

ON MEXICO ISSUES

  • No Relevant News.

ON EXPLORATION

  • SilverCrest Metals Inc. disclosed results from initial metallurgical sampling of mineralization from its Las Chispas property in Sonora. These results show that Las Chispas mineralization appears to be amenable to standard cyanidation processing, with average recoveries of 98.9% Au, 86.6% Ag. Nineteen core samples were combined into three bulk composites, with partly oxidized and non-oxidized material. Further metallurgical test work is to be completed after the announcement of a maiden resource in Q1 2018.
  • Auxico Resources Canada Inc. released metallurgical results from a 2 Kg metallurgical sample from a volcanic breccia in the footwall of the Campanillas mine, at its Zamora property in Sinaloa. The test returned 13.8% Au, 8.6% Ag recovery by gravity, 67.8% Au, 89.1% recovery by flotation, for total recoveries of 71.6% Au, 92.9% Ag.
  • Defiance Silver Corp. commenced a two-rigs phase II 5,000 m drill core program targeting new high-grade silver shoots along 900 m of the Veta Grande vein, SE from the San Acacio deposit in Zacatecas.
  • Golden Goliath Resources Ltd. received a report on its San Timoteo property in Chihuahua. The report stresses the presence of several strong systems of mineralized structures with potential for bonanza zones and a deeper Cu-Au porphyry system. Known zones within the Level 5 of the San Timoteo vein contain a 78 m long shoot @ 0.6 g/t Au, 68 g/t Ag and a 32 m long shoot @ 0.3 g/t Au, 212 g/t Ag.
  • Riverside Resources Inc. updated on exploration work in progress at its Glor property in Sonora, alongside its partner Centerra Gold Inc.. The work is focusing on the central part of the property, where samples of up to 14 g/t Au have been collected, with a detailed ground magnetic survey covering 210 hectares with 80 line-kilometers, 14 line-kilometers on an induced polarization survey, and an 850 sample soil program.
  • Prospero Silver Corp. received all necessary permits to carry a first-pass drill program at Bermudez, in Chihuahua. Prospero can now proceed with a drilling campaign funded by Fortuna Silver Mines Inc. to test a low sulfidation epithermal vein system exposed over a 2.5 km by 50-100 m area. Anomalous Au, Ag, Ba and Zn, along with the quartz vein textures support the interpretation of this being a shallow zone in the epithermal system.
  • Minaurum Gold Inc. released results from the first five holes (1,342 m) at its Alamos project in Sonora. Relevant intercepts on the Promontorio vein: 20.15 m @ 154 g/t Ag, 0.23 g/t Au, 0.5% Cu, 2.3% Pb, 6.8% Zn; 8.50 m @ 81 g/t Ag, 0.13 g/t Au, 0.1% Cu, 3.2% Pb, 2.7% Zn; 3.15 M @ 322 g/t Ag, 0.28 g/t Au, 0.5% Cu, 1.6% Pb, 3.3% Zn. At the Blind Vein/Southern Nueva Europa target an interval of 0.25 m @ 8 g/t Ag, 0.9% Pb, 2.4% Zn validated the idea of blind veins on the area. At the Minas Nuevas target the 17.65 m @ 96 g/t Ag and 13.05 m @ 54 g/t Ag intercepts confirm the potential for bulk-tonnage orebodies.

ON MINING

  • Starcore International Mines Ltd. is changing its senior management and sales personnel at the Altiplano processing plant in Matehuala, San Luis Potosi. Operational duties will be assumed by existing Starcore management, assisted by the services of a newly appointed consultant specializing in the procurement of concentrates.
  • Great Panther Silver Ltd. reported financial results for the third quarter 2017. Consolidated production was 532.8 K Oz Ag, 5,848 Oz Au, at a cash cost of $12.37 per AgEq Oz and AISC of $16.42 per AgEq Oz. The company held $55.5 M of cash and short term deposits at the end of the period.
  • Grupo Mexico S.A.B. de C.V. presented its Q3 report for 2017. During the period the Buenavista expansion in Sonora was completed in time, and US$101 M under the budgeted US$3,265 M, increasing the Cu production from 180 K to 500 K tonnes per year. The crushing and conveyor belt system for leaching material was also finished on time and US$117 M below the US$444 M budget. At the Buenavista Zinc project, basic engineering has been completed and the detailed engineering phase commenced; this project is to produce 80 K tonnes of Zn and 20 K tonnes of Cu per year, starting on 2020. At Pilares, an open pit mine is to produce ore for the La Caridad mill; an investment of $159 M is expected, in order to produce 34.5 K tonnes of Cu/year by 2019. During the period, 262.7 K tonnes of copper (at cash cost US$1.08), 5,581 tonnes of moly, 18,857 tonnes of zinc, 3.6 M Oz Ag, 43,665 Oz Au, 717.6 K tonnes of sulfuric acid were produced.
  • Corex Gold Corp. received US$278.7 K from gold recovered from the first gold-in-carbon concentrate from the Santana heap-leach project in Sonora. The company is testing different crushing sizes for the ore material staked on the heaps.
  • Americas Silver Corp. announced financial and production results for the third quarter of 2017, including figures from its Mexican operations. At the Cosalá operations in Sinaloa, with ore from the Nuestra Señora, El Cajón and San Rafael mines 134.7 K tonnes were processed @ 74 g/t Ag, to produce 277.7 K Oz Ag, 1.43 M Lb Zn, 793 K Lb Pb, 507 K Lb Cu, or 528.8 AgEq Oz. The operations are transitioning from Nuestra Señora mine to the newly developed San Rafael mine, from where all the ore to be processed is expected to be mined during November. Cash cost and All-in sustaining cost was $3.16 per silver ounce. The company had $8.7 M in cash and cash equivalents at the end of the period.
  • Endeavour Silver Corp. presented its third quarter 2017 financial report. During the period 1.26 M Oz Ag, 13,648 Oz Au were produced at its Guanaceví (Durango), Bolañitos (Jalisco) and El Cubo (Guanajuato) at cash cost $11.74 per Oz Ag and AISC $17.53 per Oz Ag. Development commenced at El Compas mine in Zacatecas, where additional prospective ground was acquired, and permits were received for the mine and plant at Terronera, Jalisco. The company had $70.3 M at the end of the period.
  • Excellon Resources Inc. released its third quarter 2017 financial results. During the period its Platosa mine in Durango mined 18.1 K tonnes, processed 19.9 K tonnes @ 409 g/t Ag, 4.4% Pb, 6.1% Zn. Recoveries stood at 87.6% Ag, 81.8% Pb, 81.1% Zn, to produce 226.2 K Oz Ag, 1.58 M Lb Pb, 2.17 M Lb Zn, or 500.7 K AgEq ounces at cash ton per ton of $208, cash cost of $2.46 per Ag Oz and AISC of $11.62. The optimization plan has resulted in drier mining conditions and significantly improved the cash cost and AISC per Ag Oz produced. The company is currently applying to become a “qualified user” under the recent energy reforms, which will allow Excellon to access the private market for electricity, a key cost on the water pumping to maintain dry mining conditions.
  • Alamos Gold Inc. reported its financial results for the third quarter of 2017, including figures from its Mulatos and El Chante operations in Sonora. At Mulatos (including numbers from La Yaqui, which started commercial production in September first) 2.34 M tonnes of ore and 1.46 M tonnes of waste were mined from open pits, with 1.75 M tonnes @ 0.96 g/t Au stacked on the heaps, while 30.8 K tonnes milled from underground feed @ 10.05 g/t Au, to produce 36,300 Oz Au at cash cost $785 per Oz Au and mine-site AISC of $864 per Oz Au. At El Chanate 1.62 M tonnes of ore and 5.19 M tonnes of waste were mined (2.19 waste to ore ratio) @ 0.48 g/t Au, to produce 14,900 Oz Au at cash cost $1,137 per Oz Au and AISC $1,164 per Oz Au.
  • McEwen Mining Inc. reported consolidated financial results for Q3 2017, with figures from its Mexican operations. During the period 7,189 Oz Au were produced at its El Gallo property in Sinaloa. Production was impacted by the failure of the crushing circuit, impacting the amount of ore placed on the heaps. The failure to the crushing equipment has been corrected and a mobile crusher was added to speed up the placing of ore material on the heaps
  • Argonaut Gold Inc. released third quarter 2017 operating and financial results. At El Castillo in Durango 1.7 M tonnes of ore @ 0.28 g/t Au and 2.4 M tonnes of waste were moved (45 K tonnes per day, tpd, at a waste to ore ratio of 1.40) to produce 11,437 Oz Au and cash cost of $947 per Oz Au. At San Agustin in Durango, pre-commercial production included 1.3 M tonnes of ore and 303 K tonnes of waste moved, with 1.23 M tonnes @ 0.42 g/t Au placed to the pads, to recover 2,690 Oz Au, 16.9 K Oz Ag. At La Colorada in Sonora, 1.1 M tonnes of ore and 4.5 M tonnes of waste were moved (61 K tpd, waste to ore ratio of 4.11), placing 1.3 M tonnes @ 0.50 g/t Au on the heaps to produce 9,518 Oz Au, 21.7 K Oz Ag. Total production from these three mines in Mexico was 23,645 Oz Au, 38.6 K Oz Ag.
  • First Majestic Silver Corp. announced third quarter 2017 financial results. First Majestic has six mies in Mexico: Santa Elena in Sonora, La Escondida in Coahuila, La Parrilla in Durango, Del Toro in Zacatecas, San Martin in Jalisco and La Guitarra in Estado de Mexico. The consolidated production was 2.4 M Oz Ag, or 4.0 M Oz AgEq at a cash cost of $8.52 and AISC of $15.73 per Oz Ag. At the end of the period the company had $120.8 M in cash and cash equivalents, with $34.7 M in debt facilities.  First Majestic Q3 2017 production11

ON FINANCING

  • Vangold mining Corp. is to go ahead with a non-brokered private placement that can accrue up to $1.575 M in gross proceeds. The proceeds are to be used on its Pinguico property in Guanajuato, and for general working capital (Pinguico, Guanajuato).
  • Telson Resources Inc. signed a term sheet of a loan facility and off-take agreement with Trafigura Mexico S.A. de C.V., to sell 100% of the Pb and Zn concentrate produced at the Tahuehueto mine in Durango, from January 2018 to December 2022. Trafigura is to provide Telson a $15 M credit facility upon signing formal agreements.
  • San Marco Resources Inc. completed its previously announced private placement for gross proceeds of $1.26 M, with insiders of the company acquiring over 14% of the issued units. Finder’s fees of $52,283 were paid to four parties (Chunibas and 1068 project, Sonora).
  • Silver Spruce Resources Inc. closed its non-brokered private placement, raising gross proceeds of $132 K, paying $2.5 K as finder’s fee (Pino de Plata, Chihuahua).
  • GoGold Resources Inc. informed that after receiving US$80 M on the sale of its Santa Gertrudis project in Sonora is to use the proceeds to pay in full it’s outstanding US$46.5 M revolving credit facility with the Bank of Montreal and repay the principal and interest on the US$7.5 M loan advanced by Agnico. GoGold is debt free and has a strong cash balance (Parral tailings, Chihuahua).

ON RESOURCES AND DEVELOPMENT

  • Consolidated Zinc Ltd. presented its third quarter 2017 report, highlighting its activities at its Plomosas property in Chihuahua. During the period the mineral resource estimate was increased to 968 K tonnes @ 15.9% Zn+Pb, for 154 K tonnes of contained metal. Metallurgical test work from the Tres Amigos sulfide zone indicate Zn recoveries >90%. The Scoping Study (SS) is near completion, with focus on the Tres Amigos and Las Espadas zones. Additional high-grade Zn+Pb mineralization has been identified, and regional exploration re-commenced.
  • Almaden Minerals Ltd. released assay results from one of the holes from the resource infill drilling program at its Ixtaca deposit in Puebla. The hole returned 180 m @ 1.25 g/t Au, 54 g/t Ag, including 32.5 m @ 2.02 g/t Au, 109 g/t Ag; and 24.15 m @ 1.58 g/t Au, 103 g/t Ag; and 25.0 m @ 4.08 g/t Au, 92 g/t Ag.
  • Bacanora Minerals Ltd. announced that access and surface rights have been secured for its Sonora project in Sonora. “The access and surface rights mainly relate to the land area covering mineral resources contained within the La Ventana, Fleur and El Sauz areas”.
  • Hecla Mining Co. provided an update on its explorations programs, including information on its San Sebastian project in Durango, where three rigs were active on the Middle, Francine and West Francine veins. In-fill drilling on the Middle vein has returned continuous veins averaging 1.07 m (true width) @ 8.09 g/t Au, 1,708 g/t Ag; 1.34 m @ 5.91 g/t Au, 1,285 g/t Ag. New drilling 100 m west and down dip of current development has intercepted 1.22 m @ 0.62 g/t Au, 295 g/t Ag, 3% Cu, 2% Pb, 5% Zn; 1.65 m @ 2.18 g/t Au, 373 g/t Ag, 4% Cu, 6% Pb, 9% Zn. On the Francine vein, 182 m W from the Hugh resource area, two holes intersected 1.10 m @ 0.31 g/t Au, 886 g/t Ag, 6% Cu, 9% Pb, 14% Zn; 1.04 m @ 0.31 g/t Au, 613 g/t Ag; 3% Cu, 12% Pb, 13% Zn. A hole 750 m to the west of the Hugh zone intersected 3.66 m @ 0.31 g/t Au, 193 g/t Ag, 2% Cu, 3% Pb, 4% Zn. Drilling on the East Francine vein, 350 m east of existing workings, intercepted 3.90 m @ 0.3 g/t Au, 460 g/t Ag; drilling along the adjacent East Middle vein intersected 2.44 m @ 1.56 g/t Au, 236 g/t Ag.
  • Alamos Gold Inc. drilled 5,394 m in 42 holes at La Yaqui Grande Deposit in Sonora during the third quarter 2017. True width Intercepts from the zone 3 are believed to be 80-90% of the reported longitude of 35.6 m @ 3.07 g/t Au; 10.80 m @ 6.21 g/t Au; 12.5 m @ 0.88 g/t Au; 22.10 m @ 2.31 g/t Au; 21.3 m @ 1.71 g/t Au; 7.90 m @ 3.80 g/t Au; 5.90 m @ 3.15 g/t Au; 12.0 m @ 0.82 g/t Au; 11.10 m @ 1.88 g/t Au; 15.30 m @ 1.82 g/t Au; 20.0 m @ 1.24 g/t Au; 13.60 m @ 0.55 g/t Au. A number of new prospects are undergoing initial exploration in the 28,777 hectares land package that Alamos Gold holds in the Mulatos district.

ON DEALS AND CORPORATE ISSUES

  • Vangold Mining Corp. executed the land purchase agreement with two private land owners at its El Pinguico property in Guanajuato. The 302 hectares land package includes El Pinguico property and provides significant land area for mining infrastructure. Vangold is committed to pay two annual installments of CDN $4,500 with a final payment of CDN $65 K on the third anniversary.
  • GoGold Resources Inc. announced the completion of the sale to Agnico Eagle Mines Ltd. of the Santa Gertrudis project in Sonora. GoGold received total cash consideration of US$80 M and was granted a 2% NSR, of which 50% can be repurchased for US$7.5 M.

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

On the picture below, argillitized porphyritic intrusive rock with minor quartz veining from a gold-copper prospect of the Durango Altiplano. Photo by Jorge Cirett.

Parrandera

Highlights on the Fourth Week of October, 2017. Mineral Exploration in Mexico

During the 43rd week of the year (October 23rd to October 29th, 2017), at least 30 press releases were announced by companies working in Mexico, including five quarterly reports. ON MEXICO ISSUES: Almost 70% of the silver production in Mexico comes from Zacatecas, Durango and Chihuahua. ON EXPLORATION: eight companies disclosed exploration efforts during the week: In Sonora Azure updated work on Oposura, Sara Alicia and Alacrán projects; SilverCrest released high-grade assays from sampling rehabilitated workings on Las Chispas. In Chihuahua Endeavour confirmed high–grade silver mineralization within an historical resource at Veta Colorada; Golden Minerals released high-grade intercepts from at its Santa Maria property; Mammoth Resources plans to commence a drill program at its Tenoriba property. In Sinaloa, Auxico provided sampling results from a trench at its Zamora project. In Zacatecas Defiance Silver provided results from drilling at San Acacio. In Oaxaca, Gold Resource disclosed drill results from Altagracia.  ON MINING: Agnico Eagle, New Gold, Coeur Mining, Goldcorp and Capstone reported third quarter results. In Chihuahua Sierra Metals announced increased recoveries from its mills at Cusi and Bolivar; Consolidated Zinc presented a Scoping Study on its Plomosas property. In Durango, Argonaut reached commercial production at San Agustin. In Guerrero, Telson reached 1,400 tpd processing at Campo Morado; Alio Gold presented drilling results of two confirmation holes at Ana Paula, and granted the development contract for the 1,200 m decline. ON FINANCING: Azure is proposing a 20 to 1 share consolidation program. ON RESOURCES AND DEVELOPMENT: Bacanora presented its yearly report. Goldcorp announced an update on mineral reserves and resources. Agnico informed that 16,800 m of drilling were performed during the last quarter at its El Barqueño property in Jalisco. Oceanus filed at SEDAR the technical report on the new resource estimate on El Tigre property in Sonora. ON DEALS AND CORPORATE ISSUES: Alamos Gold and Richmont Mines have been granted an interim order from the Quebec Superior Court. Canuc Resources acquired an important concession on its San Javier project in Sonora. Colibri Resources is to retain the investor relations contractor and marketing services on a deal involving a cash payment and shares. Minera Alamos and Vista Gold entered into an acquisition agreement on Vista’s Guadalupe de Los Reyes project in Sinaloa.

ON MEXICO ISSUES

  • On Mexican Silver Production, Zacatecas has 40.8% participation, Durango 14.0% and Chihuahua 13.9%. Located in Zacatecas the Saucito mine is the largest primary silver producer in the world, generating 13% of the Mexican production. Silver production in Zacatecas decreased 11.5% in 2016, due mainly to lower grades at Peñasquito. In Durango, production decreased 23.7% by work interruptions at San Dimas and lesser output from Guanaceví. Construction of the La Preciosa (Durango), Pitarrilla (Durango), El Gallo II (Sinaloa), Cordero (Chihuahua) and Cerro del Gallo (Guanajuato) projects still await better market conditions to go ahead.

ON EXPLORATION

  • Endeavour Silver Corp. informed that drilling has confirmed high grade silver mineralization within the Argentina-Remedios area of the Veta Colorada project. IMMSA operated the Veta Colorada mine until 1990, and left a 32.1 M Oz Ag historical resource contained in 4.0 M tonnes @ 248 g/t Ag. “Twenty-one drill holes totaling 6,928 metres (m) of core were drilled to test the portion of the historic resource located within the Argentina-Remedios area of the Veta Colorada…. The drill holes were spaced at approximately 100 m centres over an area 400 m long by 400 m deep”. True width intercepts highlighted contain 2.2 m @ 213 g/t Ag; 3.0 m @ 1,562 g/t Ag (including 0.5 m @ 8,070 g/t Ag); 2.3 m @ 248 g/t Ag; 9.3 m @ 457 g/t Ag; 7.0 m @ 344 g/t Ag;   2.3 m @ 4,641 g/t Ag (including 0.6 m @ 13,117 g/t Ag); 7.5 m @ 448 g/t Ag; 1.5 m @ 230 g/t Ag; 4.6 m @ 521 g/t Ag; 6.4 m @ 239 g/t Ag; 1.1 m @ 200 g/t Ag; 1.0 m @ 230 g/t Ag. A new resource estimate is to be released on the first quarter of 2018.
  • Auxico Resources Canada Inc. provided sampling results from a single trench on the Aguamas zone of its Zamora project in Sinaloa. The trench returned 50 m @ 0.85 g/t Au, including 3 m @ 13.07 g/t Au. The trench is within 100 m of the Aguamas mine historical workings, where recent sampling returned 14.9 g/t Au, 192 g/t Ag; 34.0 g/t Au, 98 g/t Ag. On these workings a series of quartz veins at multiple angles cut a silicified volcanic breccia.
  • Golden Minerals Co. released high-grade intercepts from the first six holes of a drill campaign on its Santa Maria property in Chihuahua. Intercepts include true width results of 1.06 m @ 604 g/t Ag, 0.84 g/t Au, 0.2% Pb, 0.1% Zn; 0.80 m @ 255 g/t Ag, 0.77 g/t Au, 1.6% Pb, 1.5% Zn; 2.50 m @ 431 g/t Ag, 0.29 g/t Au, 0.5% Pb, 1.0% Zn; 2.50 m @ 217 g/t Ag, 0.49 g/t Au, 0.6% Pb, 0.2% Zn; 0.40 m @ 164 g/t Ag, 0.40 g/t Au, 0.6% Pb, 3.8% Zn; 2.36 m @ 310 g/t Ag, 0.77 g/t Au, 0.4% Pb, 0.9% Zn. These holes potentially extend the strike dimension of the vein resource 110 m to the east, with the remaining drill holes to test an additional 250 m on the same direction.
  • Defiance Silver Corp. provided results from its phase 1 drill program at its San Acacio project in Zacatecas. Highlighted intercept results: 17.0 m @ 110 g/t Ag, 0.13 g/t Au, 0.1% Pb, 0.3% Zn (including 8.1 m @ 222 g/t Ag, 0.22 g/t Au 0.2% Pb, 0.5% Zn); 16.7 m @ 101 g/t Ag, 0.75 g/t Au, 0.1% Pb, 1.8% Zn (including 3.2 m @ 419 g/t Ag, 0.82 g/t Au, 0.1% Pb 0.3% Zn); 6.1 m @ 138 g/t Ag, 0.80 g/t Au, 0.2% Cu, 1.3% Pb, 1.9% Zn; 3.6 m @ 211 g/t Ag, 0.14 g/t Au, 0.1% Pb, 0.2% Zn; 7.4 m @ 159 g/t Ag, 0.52 g/t Au, 0.8% Pb, 1.8% Zn; 7.25 m @ 631 g/t Ag, 0.43 g/t Au, 0.1% Pb, 0.2% Zn; 0.7 m @ 432 g/t Ag, 0.24 g/t Au, 0.2% Pb, 0.6% Zn; 0.75 m @ 331 g/t Ag, 0.10 g/t Au, 0.1% Pb, 0.3% Zn; 2.1 m @ 283 g/t Ag, 0.17 g/t Au, 0.4% Pb, 0.7% Zn; 0 m @ 231 g/t Ag, 0.51 g/t Au, 0.4% Pb, 1.7% Zn; 3.0 m @ 372 g/t Ag, 0.10 g/t Au, 0.2% Pb, 0.4% Zn. The Veta Grande system pinch and swells along strike, with 4.4 km of the 5.6 km Defiance holdings having not seen production or modern exploration in a vein system that has produced close to 200 M Oz Ag.
  • Gold Resource Corp. disclosed drill hole results from the Alta Gracia drill program in Oaxaca. Alta Gracia hosts the Mirador mine, being 16 km NW from Gold Resource’s El Aguila project. This drill program tested four vein structures that do outcrop at the surface. Highlighted drill results: 0.23 m @ 5.17 g/t Au, 2,990 g/t Ag; 1.06 m @ 1.36 g/t Au, 453 g/t Ag; 1.47 m @ 2.29 g/t Au, 708 g/t Ag; 3.83 m @ 1.13 g/t Au, 194 g/t Ag; 0.98 m @ 0.69 g/t Au, 1,030 g/t Ag; 1.29 m @ 4.33 g/t Au, 1,710 g/t Ag; 1.72 m @ 1.40 g/t Au, 820 g/t Ag; 0.77 m @ 1.13 g/t Au, 690 g/t Ag.
  • Azure Minerals Ltd. announced its quarterly activity report. Oposura in Sonora was acquired, with drill results confirming the potential to host a high grade Zn-Pb-Ag deposit and a 7,000 m resource definition drill program in progress with two drill rigs currently in the property. The Sara Alicia project was acquired in Sonora, with rock chip sampling returning high grade gold and cobalt grades. An exploration 450 m drilling program is in progress. At Alacrán project, also in Sonora, a 5,000 m drilling campaign undertaken by earn-in partner Teck, commenced with three drill rigs operating, targeting epithermal and porphyry copper mineralisation at Loma Bonita, Cerro San Simon and Cerro Colorado areas.
  • Mammoth Resources Corp. plans to commence a diamond drill program from 8 to 24 holes at its Tenoriba project in Chihuahua. The drill targets were selected on a combination of surface geology, trace element geochemistry, gold bearing samples, PIMA sampling results, ground mag and induced polarization surveys and previous drilling by another company. Petrographic work has showed the mineralization to occur as free gold, and metallurgical testing on core material has shown gold recoveries to attain up to 100% on shallow intervals (dominated by oxides), and recoveries of 65% to 72% on the deeper intervals. To note is that the drill contractor accepted to be paid up to 60% of the cost of the program in shares of Mammoth. Core length mineralized intervals on previous drilling include 39.7 m @ 0.44 g/t Au; 34.4 m @ 1.03 g/t Au; 12.0 m @ 0.64 g/t Au.
  • SilverCrest Metals Inc. released additional underground channel sample results from its Las Chispas project in Sonora, where the company is currently exploring nine of the nineteen known veins. The channel sampling in the newly rehabilitated historic underground workings on Las Chispas vein, defining continuous unmined areas with bonanza grades. Composited intervals include an average of 2.9 m @ 5.8 g/t Au, 1,024 g/t Ag over 20 m of length; 3.0 m @ 2.2 g/t Au, 286 g/t Ag over 50 m of length; 3.0 m @ 4.0 g/t Au, 551 g/t Ag over 20 m of length; 5.0 m @ 1.8 g/t Au, 246 g/t Ag over 40 m of length; 4.9 m @ 4.9 g/t Au, 632 g/t Ag over 35.5 m of length. Individual samples as high as 1.1 m @ 15.8 g/t Au, 1,860 g/t Ag; 1.0 m @ 20.6 g/t Au, 2,082 g/t Ag; 0.8 m @ 31.7 g/t Au, 4,390 g/t Ag; 0.8 m @ 28.0 g/t Au, 2,930 g/t Ag are included in those intervals. So far SilverCrest has drilled 35,000 m in 141 holes in the project.

ON MINING

  • Telson Resources Inc. initiated ore processing at Campo Morado in Guerrero, at an approximate rate of 1,400 tonnes per day (tpd). “The first two years of production are planned to be mined from the G9 and El Largo ore bodies in areas of elevated gold and silver values within polymetallic base metal zones having average grades of 1.8 g gold/t, 142.7 g silver/t, 3.99% zinc, 0.62% copper and 1.07% lead”. Metallurgy tests have resulted in new processes added, including the removing of carbon organic matter and new types of reagents. The plan is to increase the production rate to the mill’s capacity of 2,500 tpd over the next six to twelve months.
  • Alio Gold Inc. released results from the first two confirmation holes on its Ana Paula project in Guerrero. The 2,000 m drill program is to twin 11 holes to confirm previous drilling and to obtain samples for metallurgical testing. The holes intercepted 99.4 m @ 10.8 g/t Au; 74.0 m @ 6.2 g/t Au.
  • Argonaut Gold Inc. announced commencement of commercial production on October 1, 2017, on its San Agustin mine in Durango. The project was delivered on schedule and more than 20% under budget, on the initial capital estimate of $43 M.
  • Sierra Metals Inc. informed an increase on recoveries from its mills in Mexico, to an average level of 82% at its Piedras Verdes mill in the Bolivar mine and to 83% at its Malpaso mill in the Cusi mine, both in Chihuahua. Production at Bolivar is expected to reach 3,000 tonnes per day (tpd) in Q1 2018 through the commissioning of 13 new pieces of equipment. At Cusi, the focus in on completing access, development and production of the Santa Rosa de Lima zone, with wider structures and grades than the narrow veins being mined now. Currently selected higher grade material from the old mine and development ore from Santa Rosa de Lima is being sent to the mill. Tonnage from the Santa Rosa de Lima structure is to be gradually increased until the mill operates at its 650 tpd capacity. A geological reinterpretation led to the discovery of the Santa Rosa de Lima zone, which averages 3.8m @ 372 g/t AgEq after two drill campaigns totaling 29,500 m. (Note of compiler.- There are two very informative graphics on how the metallurgical recoveries were improved within the press release).
  • Agnico Eagle Mines Ltd. reported third quarter 2017 results, including figures from its Mexican operations, on which 15.9 M were spent in sustaining capital and 2.0 M in development. At Pinos altos in Chihuahua, 587 K tonnes were processed at a rate of 6,380 tpd @ 2.65 g/t Au, and total cash cost of $376 K per Oz Au. Exploration focused at the Madroño zone, immediately SE from the Creston Mascota pit. Selected results: 15.8 m @ 4.3 g/t Au, 23 g/t Ag (including 4.2 m @ 10.6 g/t Au, 55 g/t Ag); 6.7 m @ 1.0 g/t Au, 11 g/t Ag; 11.3 m @ 1.7 g/t Au, 11 g/t Ag; 9.8 m @ 1.0 g/t Au, 14 g/t Ag; 10.9 m @ 0.9 g/t Au, 12 g/t Ag; 5.8 m @ 3.0 g/t Au; 16.5 m @ 5.8 g/t Au, 68 g/t Ag; 22 m @ 1.3 g/t Au, 24 g/t Ag. At La India in Sonora, 1.54 M tonnes were processed at a rate of 16,762 tpd @ 0.69 g/t Au and total cash cost per Au ounce of $657. Drilling is ongoing at the Main Zone, El Realito, Cerro del Oro and El Cochi zones. Promising results from ongoing exploration have led to the search of location options to construct additional pad capacity.
  • New Gold Inc. released third quarter 2017 results, which includes the production of 7,951 Oz Au, 0.1 M Oz Ag from the residual leaching of the closed San Pedro mine in San Luis Potosi, at an All-in sustaining cost of $1,532 per Au Oz.
  • Coeur Mining Inc. reported third quarter 2017 results, including figures from its Palmarejo mine in Chihuahua, where 413.1 K tonnes @ 172 g/t Ag, 2.49 g/t Au were milled. Average recoveries were 83.6% for Ag and 83.1% for Au to produce 1.91 M Oz Ag, 28,948 Oz Au. Production reached the end of year target of 4,500 tpd during the period. As many as nine rigs were operating at Palmarejo, focused on resource expansion at the Nación–Dana deposit.
  • Alio gold Inc. has awarded the contract for developing the underground decline at the Ana Paula project JDS Energy and Mining to manage the contract and underground mining operation. The 1,200 m decline is expected to take seven months to complete, at a rate of 5-7 m per day, and cost of approximately $10 M. A definitive feasibility study (DFS) is currently under way, and expected to be completed in the second quarter of 2018.
  • Goldcorp Inc. presented the third quarter report for 2017, without including figures by project. The company produced 633 k Oz Au at an AISC of $827 per gold ounce.
  • Capstone Mining Corp. announced third quarter financial results, including figures from its Cozamin operation in Zacatecas, where 4,242 tonnes of copper were produced during the period, at all-in cost of $1.86 per Lb Cu. The signing of an agreement that provides access to Capstone to the lower depths of the adjoining Endeavour Silver claim to the south is providing access to a zone with higher grades and greater widths, some 580 m away from the current indicated resource of the Mala Noche Footwall Zone.
  • Consolidated Zinc Ltd. completed the Scoping Study on its Plomosas property in Chihuahua with positive results at a base case level. The study focused on mining the Tres Amigos resource (544 K tonnes @ 11.2% Zn, 2.1% Pb, 14 g/t Ag) on level 5 using existing infrastructure. Contractor mining is to be used with a cut and fill method on mineralization on which 90% to 95% Zn and up to 70% Pb recoveries have been achieved, to produce a concentrate free of penalized elements. The process is to include crushing, grinding, bulk flotation roughing and cleaning stages to produce a concentrate.

ON FINANCING

  • Azure minerals Ltd. has proposed a 20 to 1 consolidation, reducing the current shares on issue from 1.67 billion to 83.6 million. Shareholder approval is to be sought at the AGM on 20 November 2017. Cash balance at quarter end is $5.9 M (Oposura and Sara Alicia, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Bacanora Minerals Ltd. presented its annual financial results for the year ended on 30 June 2017. During the period Bacanora secured a strategic partnership with Hanwa Co. Ltd.; a feasibility study (FS) is to be completed in Q4 2017; lithium carbonate has been produced at the Pilot Plant since May 2016, enabling optimization of the beneficiation process; 4,000 m of infill drilling was completed to upgrade resources; acquired 50% interest on the Zinnwald Lithium project in Germany.
  • Goldcorp Inc. presented an update on its mineral reserve and mineral resource estimates to the end of June 2017, including figures from its Mexican operations. At Peñasquito in Zacatecas, proven and probable gold mineral reserves totaled 9.0 M Oz Au, compared with 10.0 M Oz Au in 2016. Mine depletion accounted for 0.7 M Oz Au, while higher input costs and updated metallurgical recoveries led to a change in cut-off grade, resulting in the reclassification of 0.4 M Oz Au into the measured and indicated mineral resource category. 0.22 M Oz Au stand in the inferred category. Reserves also include 545.6 M Oz Ag, 3,684 M Lb Pb, 8,927 M Lb Zn; Measured and Indicated resources (M&I) of 5 M Oz Ag, 1,270 M Lb Pb, 2,858 M Lb Zn; Inferred resources of 14.2 M Oz Ag, 85 M Lb Pb, 307 M Lb Zn.
  • Agnico Eagle Mines Ltd. reported approximately 16,800 m of drilling at El Barqueño, in Jalisco, during the last quarter. The focus has been on extending known deposits and testing other areas as Tecolote, El Rayo and Camino. Drilling has now extended the mineral resources over one km to the W of the Azteca-Zapoteca zone. Six rigs are operating on El Rayo, Cuauhtemoc, Pilarica, Zateca-Zapoteca and Socorro. Agnico believes in the potential to develop a series of open pits utilizing heap leach and/or mill processing similar to its Pinos Altos mine in Chihuahua.
  • Oceanus Resources Corp. has filed a 43-101 compliant Technical Report disclosing the mineral resource estimate announced in September on its El Tigre property in Sonora. The resource includes two open pit and two underground operations at the El Tigre and Fundadora veins. The total hard rock resource is 25.9 M tonnes @ 0.52 g/t Au, 19 g/t Ag, containing 436 K Oz Au, 15.7 M Oz Ag and 6.6 M tonnes @ 0.52 g/t Au, 89 g/t Ag as indicated and inferred resources respectively. The tailings resource is 939 K tonnes @ 0.27 g/t Au, 78 g/t Ag, containing 8 K Oz Au, 2.3 M Oz Ag and 1 K Oz Au, 254 K Oz Ag, as indicated and inferred resources respectively.

ON DEALS AND CORPORATE ISSUES

  • Alamos Gold Inc. and Richmont Mines Inc. have been granted an interim order from the Quebec Superior Court (Commercial Division) authorizing various matters, including the holding of special meetings of Alamos and Richmont shareholders to consider the proposed plan of arrangement whereby Alamos will acquire all of the issued and outstanding shares of Richmont, and the mailing of the joint information circular.
  • Canuc Resources Corp. entered into a definitive agreement to acquire the Carobens 151 hectares concession from Minerales y Carbones de Mexico S.A. de C.V. by issuing 150 K common shares (valued at US$50 K) and US$50 K in cash. “The newly acquired mining concession envelops existing land holdings to the northeast. Early exploration has determined that silver-gold mineralization strengthens to the northeast.”
  • Colibri Resources Corp. announced the retention of FronTier Consulting Ltd. to provide investor relations and marketing services. Under the 12-month period Colibri is to pay $110 K plus out-of-pocket-expenses, and grant 150 K stock options at an exercise price of $0.15. FronTier and its related companies currently own 1.34 M share purchase warrants of Colibri.
  • Minera Alamos Inc. entered into an option agreement with Vista Gold Corp. to acquire Vista’s subsidiary Minera Gold Stake S.A. de C.V., which owns the Guadalupe de Los Reyes project in Sinaloa. Guadalupe de Los Reyes has an indicated resource of 380 K Oz Au and 155 K Oz Au of inferred resources. The agreement includes US$6 M in staged payments: US$1.5 M on closing, US$1.5 M on each of the 12 and 24 month anniversary and a final purchase price of US$1.5 M on or before the 48 anniversary. A minimum 1% NSR will apply to gold production from a heap leach open pit, which could increase to 2% if gold prices exceed US$1,600 per ounce. The royalty is capped at a cumulative amount of US$2 M. Vista Gold retains the right to acquire a 49% non-carried interest in the development of underground gold resources, if Vista’s interest is diluted below 10% interest, an NSR like the one used to open pit mining is to apply.

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

Collage2

On the picture above, collage of mineralized rock fragments from a prospect on the Durango Altiplano. Photo by Jorge Cirett.

Highlights on the Third Week of October, 2017. Mineral Exploration in Mexico

During the 42nd week of the year (October 16th to October 22nd, 2017), at least 29 press releases were announced by companies working in Mexico, including eight quarterly reports. ON MEXICO ISSUES: No relevant news. ON EXPLORATION: Nine companies disclosed exploration efforts during the week: In Sonora, Alix Resources is doing metallurgical studies at its Agua Fria project; Teck is drilling the Alacrán project;  Oceanus discovered several veins at its El Tigre property; Riverside presented an exploration update on its Tajitos and Cecilia projects; SilverCrest released drill results from the Babicanora vein on its Las Chispas property; VVC Exploration boasted on the size of the mineralized system at Cumeral; Azure Minerals started drilling its Oposura project. In Chihuahua, Harvest Gold presented results on a soil program completed on its Cerro Cascaron project. In Sinaloa, VVC Exploration describes two mineralized structures at its La Tuna property. In Veracruz, Mexican Gold completed a geophysical survey that highlighted several targets at its Las Minas project. ON MINING: Avino Silver, Premier Gold, Sierra Metals, Gold Resource, Excellon, Fortuna Silver, First Majestic and McEwen Mining reported preliminary third quarter results. Corex Gold shipped the first gold concentrate from its Santana property in Sonora.  ON FINANCING: Excellon is to raise up to $11.5 M on a bought deal basis; Goldcorp exercised C$3.5 M on Alio Gold warrants; Alio gold exercised a buy-back clause to acquire 1% of NSR from Goldcorp; Silver One raised C$4.3 M. ON RESOURCES AND DEVELOPMENT: Leagold updated the resource estimate at the Bermejal Underground deposit on its Los Filos property  in Guerrero; Mexican Gold presented drill results from its Las Minas property in Veracruz; Torex Gold commenced an in-fill drill program at its Media Luna project in Guerrero; Monarca Mining is reviewing the geological information and drill holes from its Tejamen property in Durango; Riverside is re-logging core from the Jesus Maria zone of its Peñoles project in Durango; Southern Silver presented an update on the exploration and resource definition at its Cerro Las Minitas project in Durango; VVC Exploration is looking into bringing the Samalayuca copper property in Chihuahua to production; Bacanora Minerals received the environmental permit for plant construction on its Sonora lithium project. ON DEALS AND CORPORATE ISSUES: Alix Resources informed that Lithium Australia NL holds now 54% of the Elektra project in Sonora. Goldcorp announced the completion of the sale of its 21% stake on San Nicolas (Zacatecas) to Teck.

ON MEXICO ISSUES

  • No Relevant News.

ON EXPLORATION

  • Alix Resources Corp. completed recently a 2,500 m reverse circulation drill program at its Agua Fria project in Sonora. The program comprised 16 holes, returning 33 m @ 1,058 ppm Li; 48 m @ 1,031 ppm Li; 24 m @ 1,050 ppm Li. “A large sample is currently being composited for further metallurgical studies.   “In addition to significant Li values, the clay horizons at Agua Fria are anomalous in potassium which may be recoverable as potassium sulphate…”
  • Azure Minerals Ltd. informed that project operator Teck has commenced drilling on the Alacrán project in Sonora. During 2017 Teck has performed geological mapping, surface sampling and an induced polarization survey, identifying two high priority targets. The first target is the extension of the Loma Bonita Ag-Au deposit towards Cerro San Simon, with potential for epithermal mineralization. The second target is Cerro Colorado where strong chargeability and resistivity anomalies were identified under soil anomalies, pointing to a porphyry copper target. Three diamond rigs are to drill 5,000 m.
  • Mexican gold Corp. completed 50 km of ground magnetic survey and 15 line km of “Moving Loop Time Domain Electromagnetic” (TDEM) on the El Dorado/Juan Bran, Cinco Señores and Las Minillas mineralized zones at its Las Minas property in Veracruz. The TDEM method was validated over known parts of the mineralized system, with multiple new targets emerging on the three zones.
  • Oceanus Resources Corp. has discovered several new veins located approximately 150 m north and parallel to the Caleigh vein on its El Tigre project in Sonora. A drill rig is to arrive on the last week of October.
  • Riverside Resources Inc. presented an update on its Cecilia, Tajitos and La Silla projects. At Cecilia in Sonora, the environmental permit has been received to drill test the upper portion of a dome-related epithermal system, with sampling returning 21% of 394 chip-channel samples greater than 0.3 g/t Au. At Tajitos, also in Sonora, a number of new targets have been identified after reviewing in detail the past exploration and drilling campaign. At La Silla in Sinaloa, Riverside continues to consolidate a strong land package and outlining multiple veins, with soil surveying, mapping, sampling, structural analysis, remote sensing and prospecting.
  • Harvest Gold Corp. and Evrim Resources Corp. covered an area of 4.5 km by 1.6 km with a soil sampling program at its Cerro Cascaron project in Chihuahua. The soil survey included 877 Samples collected every 50 m on lines separated 200 m apart, oriented east-west. “Results have extended known veins, identified two new corridors and have highlighted a 1.4 kilometre-long, very strong gold-silver trend to the north of the ……. Serpiente Dorada vein”. The Carabina, San Pedro, and La Puerta areas show a “significant soil response in gold, silver and pathfinders along strike from known gold-silver mineralization and two additional areas between San Pedro and La Puerta, have significant pathfinder element responses”.
  • VVC Exploration Corp. describes its Cumeral project in Sonora as boasting a gold mineralization zone that runs at least for 3.6 km. At La Tuna in Sinaloa, two mineralized structures are favorable for an open-pit gold/copper resource. A signed letter of intent (LOI) with a mining company is at the due diligence stage.
  • SilverCrest Metals Inc. released further results from the Phase II drill campaign at its Las Chispas property in Sonora. The Babicanora vein has been drill tested for over 600 m of strike length, with a near-surface mineralized height of 150 to 175 m. High-grade intercepts occur also on the Granaditas and Amatista veins on the Babicanora area. Results include 2.9 m (true width, or TW) @ 5.6 g/t Au, 173 g/t Ag; 3.0 m @ 4.3 g/t Au, 130 g/t Ag; 2.0 m @ 3.0 g/t Au, 78 g/t Ag; 4.0 m @ nil Au, 397 g/t Ag; 4.1 m @ 3.5 g/t Au, 137 g/t Ag; 1.7 m @ 3.6 g/t Au, 190 g/t Ag. The average of the high-grade zone in 20 holes of the Babicanora vein is 3.6 m @ 2.73 g/t Au, 263 g/t Ag. Approximately 5,000 m of drilling is planned for the remaining part of 2017.
  • Azure Minerals Ltd. is drilling with two core rigs its Zn-Pb-Ag Oposura project in Sonora. The 120 hole program is to total 7,000 m, aiming to produce a mineral resource estimate by the end of March 2018.

ON MINING

  • Avino Silver and Gold Mines Ltd. reported third quarter 2017 production results from its Avino property in Durango. At the Avino mine 119.3 K tonnes were mined, with 117.9 K tonnes milled @ 66 g/t Ag, 0.7 g/t Au, 0.48% Cu; recoveries stood at 85% Ag, 70% Au, 88% Cu to produce 213.8 K Oz Ag, 1,847 Oz Au, 1.1 M Lb Cu (501.8 ton). At the San Gonzalo vein 18.4 K tonnes were mined, 20.3 K tonnes milled @ 281 g/t Ag, 1.55 g/t Au; with recoveries of 85% Ag, 82% Au, producing 155.2 K Oz Ag, 826 Oz Au.
  • Premier Gold Mines Ltd. announced preliminary third quarter results, including figures from its Mercedes mine in Sonora, where 18,564 Oz Au, 82,856 Oz Ag were produced.
  • Gold Resource Corp. disclosed preliminary production results for the third quarter 2017 on its El Aguila property in Oaxaca. The company produced 6,465 Oz Au, 392.1 K Oz Ag, 291 tonnes Cu, 1,449 tonnes Pb, 4,628 tonnes Zn.
  • Sierra Metals Inc. reported third quarter 2017 production results, including figures from its Cusi and Bolivar mines in Chihuahua. At Bolivar 223.3 K tons were processed @ 0.92% Cu, 14 g/t Ag, 0.14 g/t Au, achieving recoveries of 77.9% Cu, 74.5% Ag, 61.6% Au, to produce 3.52 M Lb Cu, 76 K Oz Ag, 629 Oz Au. At Cusi, 13.2 K tonnes were processed @ 154 g/t Ag, 0.26 g/t Au, 1.0% Pb, 1.1% Zn, with recoveries of 84.1% Ag, 55.7% Au, 83.5% Pb, 50.9% Zn, to produce 55 K Oz Ag, 61 Oz Au, 247 K Lb Pb, 160 K Lb Zn.
  • Excellon Resources Inc. announced third quarter 2017 results from its Platosa mine in Durango, where 18.1 K tonnes were mined, and 19.9 K tonnes milled @ 409 g/t Ag, 4.4% Pb, 6.1% Zn. Recoveries stood at 87.6% Ag, 81.8% Pb, 81.1% Zn, to produce 226.2 K Oz Ag, 1.6 M Lb Pb, 2.2 M Lb Zn. “All-in sustaining cost decreased during the quarter to approximately $11-$13 per payable silver ounce…”.
  • Fortuna Silver Mines, Inc. released third quarter 2017 production results, including figures from its San Jose mine in Oaxaca. At San Jose 263.7 K tonnes were milled at a rate of 3,038 tonnes per day (tpd), and an average grade of 229 g/t Ag, 1.71 g/t Au, with recovery rates of 90.5% Ag, 91.4% Au, to produce 1.77 M Oz Ag, 13,248 Oz Au. Mine production was sourced from Trinidad Central and Trinidad North.
  • First Majestic Silver Corp. released production results for the third quarter 2017 from its six mines in Mexico: Santa Elena in Sonora, La Encantada in Coahuila, La Parrilla in Durango; Del Toro in Zacatecas, San Martin in Jalisco, and La Guitarra in Estado de Mexico. Total production from the six mines amounts almost four million silver equivalent ounces during the period.First Majestic Q3 2017 production11
  • Corex Gold Corp. shipped the first gold–in-carbon concentrate from its Santana heap-leach project in Sonora. Corex has been conducting continuous bulk testing heap-leach activities on coarser crushed material than in the next anticipated program to be performed on finer crushed material.

    McEwen Mining Inc. reported production results for the first quarter 2017, including figures from its operations at El Gallo in Sinaloa, where 7,213 AuEq ounces were produced. Production below expectations is the result of a serious mechanical failure that halted crushing for a period of time. Better grades and increased crushing rates in the rest of the year are expected to partially compensate for the shortfall.

    ON FINANCING

    • Excellon Resources Inc. entered into an agreement with a syndicate of underwriters to sell shares on a bought deal basis for gross proceeds of $10 M. If an over-allotment option is exercised in full, gross proceeds for the offering can reach $11.5 M. (Platosa, Durango).
    • Alio gold Inc. announced that Goldcorp Inc. exercised its warrants that expire on October 19, 2017 for total proceeds of C$3.5 M. Alio Gold also exercised a buy-back right from Goldcorp of a 1% NSR on its Ana Paula project in Guerrero, for US$2.9 M. After the buy-back, the NSR held by Goldcorp on Ana Paula is now 2%. (San Francisco, Sonora).
    • Silver One Resources Inc. closed an oversubscribed non-brokered private placement for gross proceeds of C$4.3 M (Peñasco Quemado, Sonora).

    ON RESOURCES AND DEVELOPMENT

    • Leagold Mining Corp. updated the Bermejal Underground mineral resource estimate at its Los Filos property in Guerrero. The updated resource includes 9.9 M tonnes @ 6.15 g/t Au, 22 g/t Ag in the measured and indicated category, and 4.7 M tonnes @ 5.36 g/t Au, 16 g/t Ag in the inferred bracket, containing 1.97 M Oz Au and 820 K Oz Au in each category respectively. The estimate includes data from form 505 drill holes totaling 195,261 m, with mineralization having been tested along 1,600 m along the strike of the intrusive contact, with a vertical depth extent of over 800 m. Drill hole spacing is roughly 35 m for indicated resources and less than 25 m for measured resources.
    • Mexican Gold Corp. reported mineralized intercepts from its ongoing resource expansion drilling at El Dorado/Juan Bran zone at its Las Minas property in Veracruz. One hole intersected a 21 m interval of chalcopyrite, bornite and magnetite, and a second interval of 56 m of stronger mineralization. Both intervals have wide zones outside the outline of the mineral resource. One other hole intersected two intervals of 3 m and 8 m with chalcopyrite, bornite and magnetite.
    • Torex Gold Resources Inc. has initiated the in-fill drilling program at its Media Luna development project in Guerrero. The program’s purpose is to upgrade to the Indicated confidence level, 25% of the current resource (7.4 M Oz AuEq). The US$15 M program contains 175 holes averaging 600 m in depth, for a total of 105,000 m of drilling.
    • Monarca Mining Inc. is currently re-analyzing geological information and the re-logging of historical drill results from its Tejamen property in Durango. Monarca has identified three high grade intercepts at the Los Mantos and Cerro Prieto portions of Tejamen, including an 80 m zone containing 417 g/t Ag. The feeder veins strike to the SW for approximately one km. Drilling reached only about 150 m of depth, and the core was not assayed for other metals.
    • Riverside Resources Inc. informed that re-logging of 15 holes of the Jesus Maria zone at its Peñoles project in Durango resulted in the interpretation that at least one and possibly multiple high-grade vein structures remain untested for hundreds of meters along strike and down dip.
    • Southern Silver Exploration Corp. presented an update on activities at its Cerro Las Minitas project in Durango. During 2017 13,600 m were drilled in 18 holes, identifying and extending the new Skarn Front zone beneath the Blind and El Sol deposits. Exploration has been funded by Electrum Global Holdings L.P., earning a 60% stake on the project by spending US$5.0 M. A total of 107 drill holes for 49,600 m have been completed on the project, with exploration expenditures reaching US$10 M.
    • VVC Exploration Corp. is looking to bring the Samalayuca copper project to production in 2018. A 2013 NI-43-101 resource estimate shows a resource of 4.1 M tonnes of ore. VVC plans to use low cost, low tech processing to produce copper cement that is directly usable in many industrial processes.
    • Bacanora Minerals Ltd. announced the environmental impact statement (Manifestacion de Impacto Ambiental, or MIA) on its Sonora project has been approved by SEMARNAT (Environmental agency). The MIA approved is for the production of 35,000 tonnes per year of lithium carbonate through a conventional beneficiation process followed by a standard SO4 roasting process.

    ON DEALS AND CORPORATE ISSUES

    • Alix Resources Corp. announced that Perth-based lithium processing technologist, Lithium Australia NL (LIT) is controlling now 54% of the Elektra lithium project in Sonora. LIT has the right to earn up to 65% interest on the project under the current JV agreement.
    • Goldcorp Inc. announced the completion of the sale of its 21% minority interest in the San Nicolas Cu-Zn project in Zacatecas, to Teck Resources Ltd., for a cash consideration of US$50 M.

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

     

    On the picture below, sheeted quartz veins cutting an intrusive rock on a prospect of the Durango Altiplano. Photo by Jorge Cirett.Pillar2

Highlights on the Second Week of October, 2017. Mineral Exploration in Mexico

During the 41st week of the year (October 9th to October 15th, 2017), at least 24 press releases were announced by companies working in Mexico, including seven quarterly reports. ON MEXICO ISSUES: The Secretaría de Economía announced the liberation of over 195 K hectares of ground for staking. ON EXPLORATION: Eight companies disclosed exploration efforts during the week: In Sonora, Azure Minerals is about to start drilling its Oposura and Sara Alicia projects; Canuc Resources released underground and surface rock sampling results from its San Javier project; Colibri Resource released an exploration update of its Evelyn project; Silver Viper is drilling its Clemente project. In Sinaloa Chesapeake Gold commenced a 5,000 m drilling program focused in two prospects on its Yarely project. In Coahuila, Discovery Metals received the environmental permit to drill five of its projects; Silver Bull Resources released the results from the first two underground holes to test high grade structural feeders at its Sierra Mojada project. ON MINING: Endeavour Silver, Capstone Mining, Leagold Mining, Great Panther Silver, Alamos Gold, Gogold Resources and Alamos Gold reported preliminary third quarter results. Torex Gold signed a 25 year land agreement with the Puente Balsas Sur Ejido, needed for the exploration and operation of its Media Luna project in Guerrero. Telson Resources received the environmental permit for mine and related infrastructure on its Tahuehueto project in Durango.  ON FINANCING: Colibri Resources settled a $10 K debt by issuing shares to one of its directors. Sierra Metals entered into an open market agreement with a consortium to raise up to $55 M on the NYSE market. Fortuna Silver’s CEO bought approximately US$430 K shares of the company in the open market. Oroco Resources intends to complete a non-brokered private placement to raise up to $600 K. ON RESOURCES AND DEVELOPMENT: Fortuna Silver released exploration results from its San Jose property in Oaxaca, including high-grade drilling results. ON DEALS AND CORPORATE ISSUES: No Relevant news.

ON MEXICO ISSUES

  • The Secretaría de Economía (Bureau of Economy) released the long due and eagerly awaited second release of previously held land of 2017, ground that is now going to be open for mining concession applications. Over 44 K hectares of reduced land (from eleven concessions), 131 K hectares of abandoned concessions (95) and almost 20 K hectares of cancelled concessions (96) are to be available in one month for staking by individuals and corporations.

ON EXPLORATION

  • Azure Minerals Ltd. is about to start drilling at its Oposura and Sara Alicia projects in Sonora. The environmental permit has been granted for both projects. At Oposura a total of 7,000 m of drilling is planned in 120 holes on a 1,400 by 400 m area. At Sara Alicia geological mapping, rock chip channel sampling, gridded soil sampling, and initial target identification has been completed. A zone of high grade gold and cobalt with samples of up to 39 g/t Au and up to 6% Co has been identified and is to be drill tested with 5-6 holes for a total of 450-500 m of diamond core.
  • Canuc Resources Corp. reported high grade silver and gold from recent sampling of underground workings, and from the surface of the Carranza breccia zone at its San Javier project in Sonora. “Road construction, trenching and drill platform preparation have been completed and surface mapping and sampling are ongoing.” The focus is on the breccia zones found at the intersections of the two fault trends. Results include 0.5 m @ 10.3 g/t Au, 250 g/t Ag; 0.5 m @ 8.0 g/t Au, 246 g/t Ag; 1.23 m @ 6.0 g/t Au, 174 g/t Ag; 1.2 m @ 10.5 g/t Au, 220 g/t Ag; 1.6 m @ 9.5 g/t Au, 150 g/t Ag; 1.6 m @ 11.3 g/t Au, 100 g/t Ag; 0.9 m @ 5.1 g/t Au, 17,200 g/t Ag; 1.3 m @ 1.9 g/t Au, 6,230 g/t Ag; 1.4 m @ 2.0 g/t Au, 2,395 g/t Ag; 0.7 m @ 1.6 g/t Au, 150 g/t Ag; 2.5 m @ 1.1 g/t Au, 600 g/t Ag; 3.0 m @ 1.2 g/t Au, 470 g/t Ag.
  • Chesapeake Gold Corp. commenced a 5,000 m diamond drill program at its 68,000 has Yareli project in Sinaloa. The phase I program is to focus on the Central and Loretos prospects. “At Central prospect Initial drill holes will test the four subparallel north – northwest trending stockwork structures up to one kilometre in length and associated extensive breccia bodies..” At Loretos three widely spaced holes are planned to test the west side of a “V” shaped IP anomaly which is over 3 km long and one km wide.
  • Colibri Resource Corp. released a report on its 506 hectare Evelyn project in Sonora. Geological and structural mapping, as well as rock chip sampling were conducted. The property is underlain by Jurassic rhyolites, andesites and sandstones. Prospects highlighted include the Mine Working shear zone, the Cerro Rojo Fault and the Quartz Vein Swarm. Of 74 samples collected, 33 returned values greater than 0.1 g/t Au.
  • Discovery Metals Corp. received drill permits for five of its projects from the Mexican environmental regulator, SEMARNAT. These permits cover the La Kika, Renata, Santa Rosa, La Minerva, and Jemi-Rare projects in northern Coahuila.
  • Silver Bull Resources Inc. provided the results from two drill holes of its underground drill program targeting high-grade structures at its Sierra Mojada project in Coahuila. The first hole intersected 7 m @ 121 g/t Ag, 0.52% Cu, including 2 m @ 376 g/t Ag, 3.0% Cu. The second hole intersected 25.5 m @ 294 g/t Ag, 0.96% Cu, including 11.5 m @ 486 g/t Ag, 1.13% Cu and 4 m @ 966 g/t Ag, 2.0% Cu, with the hole entering and ending in an unmapped working. The results confirm the East-West continuity of the first of three structures to be drilled.
  • Silver Viper Minerals Corp. is performing a 2,000 m drilling program at its Clemente project in Sonora. The diamond drilling is designed to target the down dip projection of the steep dipping quartz shear vein and adjacent quartz veining observed in accessible historical mine workings.

ON MINING

  • Endeavour Silver Corp. reported production results for the third quarter 2017. At Guanaceví in Durango, 74.6 K tonnes were produced at a rate of 811 tonnes per day (tpd) @ 250 g/t Ag, 0.57 g/t Au and recoveries of 87.2% Ag, 89.5% Au, to produce. 522.9 K Oz Ag, 1,224 Oz Au. At Bolañitos, in Guanajuato, 114.5 K tonnes were produced at a rate of 1,245 tpd @ 85 g/t Ag, 2.15 g/t Au and recoveries of 81.1% Ag, 82.4% Au, to produce 253.8 K Oz Ag, 6,523 Oz Au. At El Cubo in Guanajuato, 133.6 K tonnes were produced at a rate of 1,452 tpd @ 135 g/t Ag, 1.35 g/t Au and recoveries of 83.7% Ag, 83.3% Au, to produce 485.4 K Oz Ag, 5,901 Oz Au. In July the production decision was made on El Compas project in Zacatecas. In August were received the permits for the mine and plant at Terroneras, Jalisco. Pending are the permits for the waste dumps and tailings areas.
  • Torex Gold Resources Inc. signed a long term, common land lease agreement with the Puente Sur Balsas Ejido for the use of the land required for the exploration, construction and mining of minerals at its Media Luna project in Guerrero. The 25 year agreement can be revoked at the company’s discretion, with one year’s notice.
  • Telson Resources Inc. received the environmental permit (MIA) authorizing the construction of a mineral processing facility, related mining facilities, plus infrastructure and necessary underground development at its Tahuehueto project in Durango.
  • Capstone Mining Corp. announced production results for the quarter terminating at the end of September 2017. At Cozamin higher throughput than planned saw 223.8 K tonnes mined from underground and 223.4 K tonnes processed at a rate of 2,429 tpd, averaging 1.98% Cu, 0.8% Zn, 0.08% Pb, 42 g/t Ag; recoveries stood at 96.1% Cu, 65.7% Zn, 7.0% Pb, 79.7% Ag, to produce 15,688 tonnes of Cu concentrate, 2,463 tonnes of Zn concentrate and 20 tonnes of lead concentrate.
  • Leagold Mining Corp. disclosed Q3 2017 gold production at the Los Filos mine in Guerrero. During the period the Los Filos mine produced 47,766 Oz Au.
  • Great Panther Silver Ltd. released production results for the third quarter 2017. At the Guanajuato Mine Complex in Guanajuato, 76.1 K tonnes were milled @ 155 g/t Ag, 2.54 g/t Au; with recoveries of 89.8% Ag, 88.1% Au, to produce 341.6 K Oz Ag, 5,471 Oz Au. At Topia in Durango, 18 K tonnes were milled @ 362 g/t Ag, 0.97 g/t Au; with recoveries of 91.1% Ag, 67.1% Au, to produce 191.2 K Oz Ag, 377 Oz Au.
  • Alamos Gold Inc. reported production for the third quarter 2017, including figures from its Mexican operations. At Mulatos (including La Yaqui) 36,300 Oz Au were produced, and 14,900 Oz Au at El Chanate, both in Sonora.
  • GoGold Resources Inc. announced production for the quarter terminated at the end of September 2017. At its Parral tailings operation 353.4 K Oz Ag were produced. An improvement on the recoveries by changing agglomeration and heap parameters can be seen in the graphic below.
  • Hecla Mining Co. reported preliminary production results for the third quarter 2017, including figures from its Mexican operations. At San Sebastian in Durango, the mill operated at 397 tpd to produce 880.9 K Oz Ag, 8,199 Oz Au.

ON FINANCING

  • Colibri Resources Corp. has issued shares in the amount of $10,000 to settle an outstanding indebtedness due to Ed Stringer, a director of the company (Evelyn, Sonora).
  • Sierra Metals Inc. entered into an open market Sale Agreement with Jefferies LLC, C. Wainwright & Co, LLC Scotia Capital (USA) Inc. and Noble Capital Markets Inc., on which the company may during the term of the agreement sell common shares in the NYSE up to the amount US$55 M in gross proceeds. No common shares will be offered or sold in Canada (Cusi and Bolivar mines, both in Chihuahua).
  • Fortuna Silver Mines Inc. announced that Jorge A. Ganoza, CEO of the company increased his equity position in Fortuna by acquiring 131,800 common shares on the open market, valued at close to US$430 K. (San Jose, Oaxaca).
  • Oroco Resource Corp. intends to complete a non-brokered private placement to raise up to $600 K of gross proceeds (Xochilapa, Guerrero).

ON RESOURCES AND DEVELOPMENT

  • Fortuna Silver Mines Inc. updated exploration efforts at its San José mine in Oaxaca, where four rigs are testing the Trinidad-Bonanza-Stockwork complex, the Trinidad North Extension and the sub-parallel Victoria vein (formerly Ocotlan vein). Relevant estimated true width intercepts (TW) comprise 4.1 m @ 247 g/t Ag, 1.8 g/t Au; 21.0  m @ 153 g/t Ag, 0.9 g/t Au; 3.6 m @ 281 g/t Ag, 1.2 g/t Au; 4.5 m @ 356 g/t Ag, 3.5 g/t Au; 3.7 m @ 1,106 g/t Ag, 6.3 g/t Au in the Victoria vein, and 6.7 m @ 218 g/t Ag, 1.3 g/t Au; 2.2 m @ 195 g/t Ag, 1.1 g/t Au; 2.2 m @ 195 g/t Ag, 1.1 g/t Au at the Trinidad/Bonanza veins and Stockwork.

ON DEALS AND CORPORATE ISSUES

  • No Relevant News.

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

On the picture below, secondary copper minerals around a quartz veinlet with oxidized sulfides, which is cutting an intrusive rock on a prospect of the Durango Altiplano. Photo by Jorge Cirett.

BlackCopper

Highlights on the First Week of October, 2017. Mineral Exploration in Mexico

During the 40th week of the year (October 2nd to October 8th, 2017), at least 25 press releases were announced by companies working in Mexico, including two quarterly reports. ON MEXICO ISSUES: a blockade to Goldcorp’s Peñasquito mine entrance in Zacatecas was lifted by assembling a government sponsored round table to assess protesters arguments. ON EXPLORATION: Activity seems to be gaining pace, with ten companies presenting press releases on their properties. In Sonora, Silver Viper has commenced the first drilling campaign on its Clemente project; Aztec Minerals disclosed interesting Au-Cu values from trenches at its Cervantes project; Canuc Resources released drilling results from its San Javier property. In Chihuahua, Sierra Metals informed on thick high-grade intercepts from drill testing deep geophysical targets at its Bolivar mine; Radius Gold disclosed initial rock chip sampling from its Los Tarros property; Harvest Gold announced exploration results on the Cascaritas prospect within its Cerro Cascaron project. In Sinaloa, Santana Minerals released metallurgical results from its Cuitaboca property. In Zacatecas and San Luis Potosi Alset Minerals released lithium and potassium results from auger drilling on 13 additional salars. In Veracruz Almadex Minerals disclosed good assay results on a long interval of its last hole at El Cobre; Mexican Gold informed that the first hole of a new drill campaign at its Las Minas property intersected two mineralized intervals containing chalcopyrite and bornite. ON MINING: Telson announced that mill clean up and refurbishment is nearing completion at its Campo Morado mine in Guerrero. US Antimony is to increase production at three of its four mines in Mexico. Americas Silver produced its first lead and zinc concentrates from the San Rafael mine in Sinaloa. Alio Gold and Coeur Mining presented third quarter 2017 reports.  ON FINANCING: Southern Silver closed the final tranche of its private placement, raising $502 K; Azure Minerals is to seek shareholder approval to share consolidation. ON RESOURCES AND DEVELOPMENT: Candelaria Mining retracted the environmental permit on its Caballo Blanco project in Veracruz.  Kootenay Silver announced assay results from drilling by partner Pan American Silver on its La Negra prospect in Sonora. ON DEALS AND CORPORATE ISSUES: Magellan Resources announced that its purchase of the SDA mill in Nayarit remains on track to completion. Radius Gold signed a binding agreement with a private Mexican company on Los Tarros property in Chihuahua. Prospero Silver received authorization from the TSX on a related third party agreement.

ON MEXICO ISSUES

  • Goldcorp suffered entrance blockades at Peñasquito, in Zacatecas. For a week the entrance to the Peñasquito mine in Zacatecas was blocked by protesters. The blockade was terminated by the establishment, aided by the federal government, of a round table to discuss the protesters grievances. The table is to be leaded by the Zacatecas State government.

ON EXPLORATION

  • Silver Viper Minerals Corp. has mobilized a drill rig to its Clemente project in Sonora. The drill program envisages 2,000 m of diamond core drilling, focusing on the El Mundo and Nuevo Mundo areas, where Ag-Au-base metals mineralization is hosted by quartz shear veins, quartz stockworks and hematitic vein breccias. The best sample to date is from the El Mundo area is 0.5 m wide @ 1,895 g/t Ag, 4.46 g/t Au, 1.9% Pb, 1.6% Zn. The environmental permit for drilling has been approved, with land and access permit agreements in place.
  • Kootenay Silver Inc. reported that Aztec Minerals Corp. disclosed attractive sampling results from trenching in the Jasper prospect at the Cervantes property in Sonora (which is under option from the former by the latter). The new manual trenching connected two previous trenches, extending Cu-Au-Mo mineralization for 92.3 m @ 0.52% Cu, 0.62 g/t Au, 76 ppm Mo, staying open in both directions. The rock is highly leached quartz feldspar porphyry with chrysocolla and neotocite as oxide copper minerals. A 50 by 50 m soil grid was completed over the Jasper project.
  • Alset Minerals Corp. released results from auger sampling on 13 additional salars in Zacatecas and San Luis Potosi. “Of the 13 salars sampled, 9 had average lithium grades exceeding 200 ppm, with 4 salars averaging lithium grades of around 400 ppm and higher…”. Dry lake sediment samples were collected using a hand-held motorized auger, or a hammer and hollow-tube sampling method, and assaying the material collected between 0.5 and 1.0 m of depth. The Caliguey salar averaged 769 ppm Li and 3.4% K; the Hernandez salar averaged 556 ppm Li, 1.6% K; the Chapala salar averaged 416 ppm Li, 1.2% K.
  • Almadex Minerals Ltd. disclosed assays for the last hole at the Norte area of its El Cobre property in Veracruz. Noteworthy intervals comprise 481.65 m @ 0.67 g/t Au, 0.27% Cu, including 187.25 m @ 1.02 g/t Au, 0.33% Cu (from 354.00 to 541.25 m). The hole was drilled to test for continuity of mineralization between two other holes within the area.
  • Sierra Metals Inc. informed that the first four holes to test 22 high priority targets identified with the recently completed Titan 24 geophysical survey intersected wide high-grade copper bodies in three different zones with no previously known mineralization. The intercepts include 25.3 m @ 0.38 g/t Au, 31 g/t Ag, 1.55% Cu, 1.95% Zn; 28.65 m @ 0.34 g/t Au, 34 g/t Ag, 1.97% Cu, 0.91% Zn; 13.05 m @ 1.79 g/t Au, 37 g/t Ag, 2.05% Cu; 33.4 m @ 0.10 g/t Au, 32 g/t Ag, 1.04% Cu, 0.20% Zn. The four intercepts are deep seated, between 340 m and 492.90 m in the core, along length (Note of compiler.- This seems a significant discovery).
  • Canuc Resources Corp. announced that the third hole at its San Javier project in Sonora intersected the Santa Rosa vein in two splays, the first with 0.37 m @ 156 g/t Ag, 0.39 g/t Au, 1.0% Pb, 5.6% Zn, and the second with 1.48 m @ 1,514 g/t Ag, 2.91 g/t Au, 4.2% Pb, 5.6% Zn. Canuc has concluded the agreement to acquire the Tule 1 concession, which envelops the property to the NE, adding considerable strike length to the Santa Rosa vein. In the NE land package is the Carranza breccia zone, with 11 m @ 274 g/t Ag on the surface, and the Cerro Colorado breccia zone, with 11.3 m @ 285 g/t Ag.
  • Radius Gold Inc. has signed a binding agreement with a private Mexican company to option the 473 has Los Tarros project in Chihuahua. Several breccia bodies occur within a 3.5 km by 1 km area, with the largest breccia exceeding 250 m by 250 m. The volcanic hosted explosive breccias are cemented by silica and iron oxides. The average of 26 samples collected is 1.42 g/t Au, 66 g/t Ag. At the Rosario breccia (>150 m by 60 m) an old pit returned 10 m @ 2.95 g/t Au, 18 g/t Ag, staying open in all directions. Other significant breccia bodies include Regalito, La Bufa (the only one hosted in granodiorite), San Nicolas and San Miguel.
  • Mexican Gold Corp. informed that step-out drilling at its Las Minas property in Veracruz intersected two intervals of chalcopyrite-bornite-magnetite mineralization in the first hole drilled beyond the current western limit of the El Dorado/Juan Bran zone. A 3.0 m interval contains magnetite and an estimated chalcopyrite content of up to 3% by volume. An 8.0 m interval further downhole is a mineralized exoskarn with up to an estimated 5% chalcopyrite by volume, and visible bornite and magnetite. Assays are pending on these core-length intervals.
  • Santana Minerals Ltd. reported good results from initial metallurgical test work on composite samples from three drill holes from the Mojardina prospect at its Cuitaboca project in Sinaloa. A 75 micron, 48 hours, bottle-roll standard carbon in leach test on the three holes returned 93.1%, 95.3%, 98.4% silver recoveries respectively; the rougher flotation test achieved 93.6%, 88.2%, and 86.8% silver respectively.
  • Harvest Gold Corp. identified six silver-rich polymetallic veins at the Cascarita prospect of its Cerro Cascaron Project in Chihuahua. High grade silver with strong Pb and Zn values were sampled in historic adits. The six veins are within a 900 m by 300 m corridor, attain up to 3.3 m in width and display colloform and drusiform quartz textures, as well as local amethyst quartz. Vein textures indicating boiling are preserved at one of the veins, as quartz pseudomorphs after bladed calcite. Results include 1.4 m @ 114 g/t Ag, 5.2% Pb, 1.3% Zn; 2.0 m @ 127 g/t Ag, 8.7% Pb, 0.5% Zn; 2.3 m @ 311 g/t Ag, 1.6% Pb, 0.3% Zn; 2.1 m @ 245 g/t Ag, 6.4% Pb, 0.5% Zn; 3.3 m @ 104 g/t Ag, 2.4% Pb, 0.5% Zn.

ON MINING

  • Telson Resources Inc. announced that mill clean up and refurbishment is nearing completion at its Campo Morado mine in Guerrero. Underground mining is being ramped up, having delivered 25 K tonnes to the coarse ore patio. Ore crushing is operational, putting 5 K tonnes to the crushed ore stockpile. Commercial production at a 1,400 tonnes per day (tpd) is projected to be achieved during October, while production levels to the 2,500 tpd mill capacity is to take 6 to 12 months.
  • United States Antimony Corp. plans to increase production at three of its four mines in Mexico. At Wadley, in San Luis Potosi, the gravity mill will process lower grade ore (not direct shipping ore), which could results in a 25-50% increase in production. At Soyatal in Queretaro, direct shipping ore is to be produced once new powder magazines are built. In Zacatecas a mine road to the Guadalupe mines is to be repaired, allowing mining to be resumed at the Santa Monica mine. The Los Juarez mine in Queretaro is awaiting a permit from SEMARNAT for the cyanide circuit at the Puerto Blanco mill.
  • Americas Silver Corp. announced that the first lead and zinc concentrates produced from its San Rafael project at its Cosalá operation in Sinaloa were produced during the last week of September. Commercial production is expected to be reached before the end of the fourth quarter, when the Nuestra Señora mine is expected to enter in care and maintenance.
  • Alio Gold Inc. released 3rd quarter preliminary production results from its San Francisco mine in Sonora. 1.9 M tonnes of ore @ 0.40 g/t Au and 5.2 M tonnes of waste were moved (3.15 waste to ore strip ratio) to produce 19,429 Oz Au, 8,808 Oz Ag. Production guidance stays on track to produce 88 -90 K Oz Au during 2017.
  • Coeur Mining Inc. disclosed third quarter 2017 production results, including figures from its Mexican operations. At Palmarejo, in Chihuahua, 413.1 K tonnes were milled @ 172 g/t Ag, 2.49 g/t Au, achieving recoveries of 83.6% Ag, 83.1% Au, to produce 1.91 M Oz Ag, 28,948 Oz Au

ON FINANCING

  • Southern Silver Exploration Corp. closed the final tranche of its previously reported private placement, for gross proceeds of $502 K. The three tranches gathered total gross proceeds of $3.58 M (Cerro Las Minitas, Durango).
  • Azure Minerals Ltd. is to seek shareholder approval for consolidation of the issued capital through the conversion of every twenty existing shares into one share.

ON RESOURCES AND DEVELOPMENT

  • Candelaria Mining Corp. decided to retract the environmental permit for the Caballo Blanco project in Veracruz, citing the current political climate and upcoming state and federal elections. “…The postponing of the permit will allow Candelaria to optimize certain aspects of the project and improve upon existing and establish new relationships with our stakeholders. “
  • Kootenay Silver Inc. announced the results of 13 infill drill holes completed by Pan American Silver Corp. on its La Negra property in Sonora. Highlighted intercepts are 34.3 m @ 159 g/t Ag (including 8.2 m @ 306 g/t Ag); 17.1 m @ 192 g/t Ag (including 3.55 m @ 597 g/t Ag); 48.7 m @ 281 g/t Ag (including 1.95 m @ 3,004 g/t Ag, 1.0 m @ 2,146 g/t Ag, 5.35 m @ 558 g/t Ag); 21.0 m @ 274 g/t Ag (including 1.1 m @ 3,018 g/t Ag); 31.8 m @ 403 g/t Ag (including 8.85 m @ 1,098 g/t Ag); 29.25 m @ 138 g/t Ag; 38.7 m @ 289 g/t Ag (including 7.6 m @ 674 g/t Ag); 76.35 m @ 236 g/t Ag; 53.8 m @ 174 g/t Ag (including 12.15 m @ 308 g/t Ag); 5.35 m @ 571 g/t Ag.

ON DEALS AND CORPORATE ISSUES

  • Magellan Gold Corp. announced that its purchase of the SDA mill in Nayarit is on track to be closed by the end of October 2017.
  • Radius Gold Inc. has signed a binding agreement with a private Mexican company to option the 473 has Los Tarros project in Chihuahua. Radius can earn a 100% interest in the project by making an immediate payment of US5 K, and staged payments over four years totaling US$1.68 M, of which US$1.2 M is a final payment at the end of the four year period. A 2% NSR can be bought by Radius for US$1 M for each 1%.
  • Prospero Silver Corp. has received TSX approval of the option to own agreement with Exploraciones Altiplano S.A. de C.V. regarding Altiplano’s Buenavista claims in Durango. The agreement constitutes a “related party transaction” under the TSX policies.

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

On the picture below, the Peña Colorada mine pit in Colima. Photo by Jorge Cirett.

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Highlights on the Fourth Week of September, 2017. Mineral Exploration in Mexico

During the 39th week of the year (September 25th to October 1st, 2017), at least 22 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, No relevant news. ON EXPLORATION, in Sonora, San Marco continues to define the footprint of a porphyry copper system at its 1068 project. In Chihuahua, Kootenay is to drill the Las Venadas zone of its La Cigarra project. In Zacatecas, Arian Silver is to halt exploration in three lithium projects after receiving auger drill results. ON MINING, Telson released details on the sale of concentrate from its Tahuehueto property in Durango. Arian Silver released financial results for the first six months of 2017.  ON FINANCING; Defiance Silver completed the first tranche of its financing for $1.7 M, VVC Exploration has raised CA$900 K and is increasing the offering ceiling to CA$2 M., MX Gold closed a non-brokered private placement for C$4 M and San Marco announced an upcoming private placement for C$1.26 M. Silver Viper completed its IPO raising $3.0 M.  ON RESOURCES AND DEVELOPMENT; Lea Gold commenced the portal development of the 1.3 km ramp at Bermejal in Guerrero.  GoldCorp has achieved 40% completion on the Pyrite Leach Project. Levon informed on the drill definition of a gold rich zone at its Cordero property in Chihuahua. Mexican Gold commenced the phase-2 drilling of its Las Minas project in Veracruz.  ON DEALS AND CORPORATE ISSUES, Sierra Metals and Jinchuan Group signed a MOU for cooperation on the Bahuerachi project in Chihuahua.

ON MEXICO ISSUES

  • No relevant news.

ON EXPLORATION

  • San Marco Resources Inc. announced that the surface alteration and mineralization footprint on its 1068 project in Sonora has been mapped over an area of 1.6 Km x 1.5 km, and is still open in two directions. A stockwork-quartz-veined volcanic lithocap phyllically altered sits on top of a poorly exposed intrusive with potassic alteration and fresh pyrite, chalcopyrite and molybdenite. Semi-continuous channel sampling over part of a new road cut ran 62 m @ 0.1% Cu, 215 ppm Mo, 0.044 g/t Au. Exploration plans include further geologic mapping up to 1 km to the NE and SE, expansion of the rock chip sampling grid and detailed mapping on the lithocap to define drill targets and drilling the potassic core.
  • Kootenay Silver Inc. completed the last hole at Las Venadas zone of its La Cigarra property in Chihuahua. The rig has been mobilized to La Navidad zone in the same project. This zone is 500 m to the east and parallel to the San Gregorio zone, which holds 60% of the mineral resource estimate at La Cigarra. Rock and soil sampling programs completed on La Navidad defined a mineralized area 1,000 m long by 300 m wide that is similar in size and in soil values as in the San Gregorio zone.
  • Arian Silver Corp. informed that in light of assay results from the initial auger drill program carried out in the Pozo Hondo, Columpio and Abundancia projects in Zacatecas, no further exploration in the properties is to be undertaken. The company owns 12 silver mining concessions covering 1,500 has in Zacatecas.

ON MINING

  • Telson Resources Inc. announced the final details of the sale of 155.4 tonnes and 316.4 tonnes of Pb and Zn concentrates respectively, from its Tahuehueto project in Durango, for proceeds of US $1.6 M. The concentrates were produced from 4,123 tonnes of ore mined from the Level 10 of El Creston Zone, grading 6.26 g/t Au, 60 g/t Ag, 2.08% Pb, 5.61% Zn. The recoveries achieved were @ 83.6% Au, 89.3% Ag, 86.1% Pb, 85.5% Zn. Mining is averaging 166 tonnes per day during September 2017, with 2,530 tonnes of ore awaiting transport to the Atocha mill.
  • Arian Silver Corp. released its financial results for the first six months of 2017. At the end of the period the company had total assets of US$1.5 M, of which $0.9 M was cash.

ON FINANCING

  • Defiance Silver Corp. closed the first tranche of its private placement for gross proceeds of $1.72 M. Finder’s fees of $122.9 K were paid in connection with the first tranche of the private placement (San Acacio, Zacatecas).
  • VVC Exploration Corp. has raised to date about CA$900 K and have commitments for an additional $460 K on its previously announced CA$1 M in a non-brokered private placement. The company is increasing the maximum amount of the offering to CA$2 M (Samalayuca copper project, Chihuahua).
  • Silver Viper Minerals Corp. has successfully completed its initial public offering (IPO), for gross proceeds of $3.0 M (Clemente, Sonora).
  • MX Gold Corp. closed a non-brokered private placement, for gross proceeds of C$4 M. Aggregate cash finder’s fees of $15.6 K will be paid (Magistral, Durango).
  • San Marco Resources Inc. is arranging a private placement to raise gross proceeds of up to C$1.26 M (Chunibas, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Lea Gold mining Corp. has commenced portal development for the 1,325 m long exploration ramp at its Bermejal Underground deposit in Guerrero. The US$ 13 M budget includes 3,136 m of ramp and cross-cut development and two ventilation raises totaling 560 vertical m. The Bermejal Underground drilling program is over 50% complete with 28,846 m drilled on 67 holes of the planned 56,000 m in 113 holes. “All holes intersected iron-oxide skarn mineralization as targeted and only two holes …..  were below a 3 gpt over 3 m diluted minimum width threshold” . The mineralization remains open in several directions.
  • GoldCorp Inc. informed the Pyrite Leach project (PLP) at Peñasquito in Zacatecas has achieved 40% completion on its $420 M investment, which is expected to be commissioned three months ahead of schedule, by the fourth quarter of 2018. The PLP is to recover 40% of the gold and 48% of the silver that currently go to the tailings. A prefeasibility study on Eco-Tails is expected by the first quarter of 2018.
  • Levon Resources Ltd. announced that drilling has extended a gold enriched sulfide zone in the northern part of the center of the current resource at its Cordero project in Chihuahua. A total of 5,655 m were drilled in 18 core holes, with results supporting extension of the gold zone for 350 m on strike to the NE. Additional infill resource drilling is needed to completely define the resource internally.
  • Mexican Gold Corp. commenced the phase 2 diamond drilling program at its Las Minitas Cu-Au property in Veracruz. The drill program is to include step-out drilling beyond the current resource at the El Dorado/Juan Bran zone, high-grade intercepts at the Cinco Señores and Las Minillas Drill targeting is to be aided by the ground magnetic and TDEM surveys.

ON DEALS AND CORPORATE ISSUES

  • Sierra Metals Inc. signed a memorandum of understanding (MOU) with Jinchuan Group Co. Ltd., formalizing the intention to cooperate on Jinchuan’s Bahuerachi property in Chihuahua. The Bahuerachi property is adjacent to Sierra´s Bolivar mine, where Sierra has been producing copper since 2012.

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

On the picture below, rock fence with fine grained quartz vein fragments in Chihuahua. Photo by Jorge Cirett.

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