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

During the 32nd week of the year (August 7th to August 13th, 2017), at least 22 press releases were announced by companies working in Mexico, including eight second quarter reports. ON MEXICO ISSUES, two companies reported the receipt of VAT recovery from the government for $1.3 M and $2.4 M respectively. ON EXPLORATION, in Sonora, Oceanus reported results from underground sampling at El Tigre, while Millrock presented an update on properties under its alliance with Centerra. In Zacatecas, Alset presented drilling results from its lithium property, La Salada. In Guanajuato, Golden Minerals informed on drilling by Electrum of its Celaya property.  ON MINING, Golden Minerals, Torex Gold, Premier Gold, Alio Gold, Pan American Silver, Americas Silver, Primero Mining and Argonaut Gold presented production and/or financial results for the second quarter of 2017. US Antimony reported cost reductions on its operations and Telson resources reported the first concentrates shipment from Tahehueto in Durango. ON FINANCING, no relevant news for the first time in the year.  ON RESOURCES AND DEVELOPMENT, Golden Minerals informed on the acquisition of three more claims and the incoming drilling campaign on its Santa Maria project in Chihuahua. ON DEALS AND CORPORATE ISSUES, Santacruz Silver completed the sale of the Gavilanes project in Durango to Marlin Gold. Colibri completed the acquisition of Canadian Gold, along with its properties in Sonora. McEwen Mining reported on the next semi-annual return of capital instalment.

ON MEXICO ISSUES

  • On VAT recovery. The first company to announce a sizeable VAT recovery in years was Alio Gold, which received $1.3 M in cash before the end of the second quarter. Primero Mining received $2.4 M after the end of the second quarter.

ON EXPLORATION

  • Golden Minerals Co. announced that Electrum Global Holdings L.P. received results of drilling on Golden’s Celaya property in Guanajuato. Results from 5,600 m drilled in seven holes (800 m per hole?) show intercepts of epithermal quartz vein mineralization with Au, Ag, Zn grades that warrant further testing.
  • Alset Minerals Corp. reported partial results from phase one drilling at La Salada salar in Zacatecas, the first of 13 salars to be tested. At La Salada, one deep hole (51.35 m) and 40 auger holes (4.5 – 26.0 m in depth, average 14 m) were completed, both near surface brine samples and extensive lake sediment samples were recovered in the 1,800 m by 900 m salar. Results from five of the holes (the rest are pending) average 14.4 m @ 3.6% K, 975 ppm Li (up to,1860 pm) and 535 ppm B. Water samples average 1.3% K, 1.6% SO4, 258 ppm B, 9 ppm Li, 57 ppm Ca, 36 ppm Mg.
  • Oceanus Resources Corp. presented assay results from sampling at old underground exploration tunnels from the unmined Protectora, Aguilas, Fundadora and Caleigh veins on its El Tigre project in Sonora. The rock chip samples are said to be at least 0.5 m in width (no average width disclosed), and collected every 3-5 m along strike in 13 exploration tunnels. Average results include 3 samples on the Caleigh vein @ 19.9 g/t Au, 2,247 g/t Ag; On the Protectora vein: 20 samples @ 0.2 g/t Au, 437 g/t Ag; 18 samples @ 1.3 g/t Au, 290 g/t Ag; 4 samples @ 2.8 g/t Au, 337 g/t Ag; 16 samples @ 2.2 g/t Au, 473 g/t Ag; 5 samples @ 2.8 g/t Au, 680 g/t Ag; 19 samples @ 0.6 g/t Au, 480 g/t Ag. On the Fundadora vein: 5 samples @ 6.1 g/t Au, 307 g/t Ag; 12 samples @ 1.2 g/t Au, 254 g/t Ag.
  • Millrock Resources Inc. presented an update in exploration, including information on its three properties in Sonora. The La Navidad project was optioned on June, and immediately entered into a JV with Centerra Gold Inc. Presently underway are soil sampling, geological mapping, induced polarization and magnetic surveys. Also in June El Picacho project was optioned and made a “designated project” on the alliance between Centerra and Millrock. Soil sampling, geological mapping, induced polarization and mag surveys are currently being performed. Los Chinos and Los Cuarenta projects options were terminated by Centerra.

ON MINING

  • United States Antimony Corp. reported major cost reductions at its Mexican antimony smelter, as a result of metallurgical changes while increasing production rates. Production at Wadley, San Luis Potosi, is growing with more miners. USAC intends to use its Los Juarez explosives license at Soyatal, Queretaro, which will save money and time. Guadalupe is undergoing road work to re-establish the production of high-grade concentrates. The application for the cyanide permit for the Los Juarez project was resubmitted to SEMARNAT (EPA equivalent) at the end of July, after one item change requested by the agency.
  • Telson Resources Inc. announced that the first shipment of lead and zinc concentrates processed at the Atocha mill has been delivered to Mercuria Commodities Trading, S.A. de C.V.. As of August 1, 2017, the Company has processed approximately 1600 tonnes of ore through the Atocha toll mill producing approximately 66.1 dry tonnes of lead concentrate and 94.5 dry tonnes of zinc concentrate which have been delivered to Mercuria.
  • Golden Minerals Co. presented financial results for Q2 2017. Approximately $1.7 M revenue was received from the oxide plant lease to Hecla, and costs of $0.5 M to the services provided under the lease, for a net operating margin of $1.1 M. The company spent $0.5 M in exploration related primarily to work at the Santa Maria (Chihuahua), Rodeo (Durango) and other properties, as well as holding costs. Cash and cash equivalents balance of $2.7 M at the end of the period.
  • Torex Gold Resources Inc. reported financial and operational results. At El Limón Guajes mine in Guerrero 74,487 Oz Au were produced, as ramp-up continues, with design throughput achieved in June. Plant throughput was 1.2 M tonnes, or 13,063 tonnes per day (tpd), while mine production was 8.4 M tonnes, or 92,044 tpd. The gold recovery rate was 86% on a 2.37 g/t Au average grade, at cash cost $709 per Oz Au and AISC $991. Cash balance of $77.2 M including restricted cash of $15.7 M at the end of the period.
  • Premier Gold Mines Ltd. announced its operational and financial results for the second quarter of 2017. At Mercedes in Sonora 177.9 K tones were milled (1,954 tpd) @ 4.03 g/t Au, 36 g/t Ag; with recoveries at 94.9% Au, 43% Ag, to produce 21,893 Oz Au, 89.5 K Oz Ag. By-product cash cost per Oz Au was CAD$550 and by-product AISC per Oz Au of CAD$688. Quarter end cash balance of $156.8 M (US$120.9 M).
  • Alio Gold Inc. reported second quarter 2017 results. Production at the San Francisco gold mine was 22,011 ounces during the period, at AISC $954 per Oz Au. The San Francisco mine revitalization plan was initiated and the definitive feasibility study (DFS) after the positive pre-feasibility study (PFS) was released and a CAD$50.4 M bought deal financing was completed. The pre-stripping campaign envisions moving 22 M tonnes of waste from the Main and La Chicharra pits over the next 20 months. Cash and cash equivalents at the end of the period were $35.9 M.
  • Pan American Silver Corp. announced Q2 2017 results, including figures from its operations in Mexico. At Dolores in Chihuahua the construction of the agglomeration plant was completed and development for underground mining advanced, with initial stope ore mining expected to initiate before the end of 2017. At La Colorada mine in Zacatecas production achieved 1,800 tpd rates during the last month of the quarter. At La Colorada 1.73 M Oz Ag, 0.94 K Oz Au were produced at cash cost $3.38 per Ag Oz. At Dolores 1.04 M Oz Ag, 22.44 K Oz Au were produced at cash cost $0.12 and at Alamo Dorado in Sonora 0.26 M Oz Ag, 0.69 K Oz Au were produced at cash cost $11.18. Cash and short-term investments of $198.2 M at the end of the period.
  • Americas Silver Corp. disclosed consolidated financial and operational results for the second quarter of 2017. The figures of its operations in Mexico were informed in a previous release. San Rafael in Sinaloa remains on budget and on time to start production by the end of Q3, 2017. Cash balance at the end of the period was $12.8 M.
  • Primero Mining Corp. reported operating and financial results for the second quarter, 2017, including figures form its Mexican operations. At San Dimas 11,903 Oz Au, 0.97 Oz Ag were produced at cash cost $1,144 per AuEq Oz, and AISC $1,650 per AuEq Oz, with operations being impacted by bad relations with unionized employees. “…the Company believes that labour disruptions may continue to adversely affect the Company’s ability to profitably operate the San Dimas…” and “Primero highlights the significant liquidity risk imposed by the pending RFC maturity date of November 23, 2017, and notes that it may not be able to fully repay its debt obligations…”. Cash stood at $12.1 M and $10.0 M available under its existing revolving credit facility (RFC) at the end of the period, with a $33.5 in VAT and $22.8 M income taxes receivable outstanding.
  • Argonaut Gold Inc. announced its financial and operating results for the second quarter of 2017. The consolidated production was 29,730 AuEq Oz at cash cost $785 and AISC $906 per AuEq ounce. At El Castillo in Durango 2.0 M tonnes of ore @ 0.39 g/t Au and 2.65 M tonnes of waste were moved (51 K tpd) to produce 16,927 Oz Au at cash cost $893 per ounce. At La Colorada in Sonora 1.22 M tonnes of ore @ 0.64 g/t Au and 4.77 M tonnes of waste were moved (66 K tpd) to produce 12,098 Oz Au and 38.2 K Oz Ag at cash cost $590 per AuEq ounce. At San Agustin (10 km from El Castillo) mining commenced during the quarter, leach pad and pond construction was completed and the crushers installed, with ore beginning to be staked on the pad in late June. Construction was 75% complete by the end of July. Cash and cash equivalents stood at $53.8 M at the end of the quarter.

ON FINANCING

  • No relevant news.

ON RESOURCES AND DEVELOPMENT

  • Golden Minerals Co. entered into an agreement to acquire three additional claims at the Santa Maria project in Chihuahua for $0.7 M over four years, with an initial payment of $50 K and $30 K in six months. The targets in these claims are to be tested in an upcoming 2,000 m drill program in the third quarter of 2017, while the environmental study to obtain the permit to perform the 200 tpd underground mining envisaged on the preliminary economic assessment (PEA) has been completed.

ON DEALS AND CORPORATE ISSUES

  • Santacruz Silver Mining Ltd. entered into a definitive agreement to sell 100% interest in the Gavilanes property in Durango to Marlin Gold Mining Ltd. Santacruz is to settle the outstanding balance on some of the claims by making a $500 k payment and issuing 1.25 M Santacruz shares to the property vendor. Gavilanes is a low sulphidation epithermal deposit in the San Dimas mining district with NI-43-101 compliant 6.1 M AgEq indicated ounces (953 K tonnes @ 200 g/t AgEq), and 28.2 M AgEq inferred ounces (5.4 M tonnes @ 163 g/t AgEq).
  • Santacruz Silver Mining Ltd. settled the outstanding balance owing on certain of the claims included in the Gavilanes project (in Sinaloa) by making a cash payment of US$500 K and 1.25 M Santacruz shares.
  • Colibri Resource Corp. completed the acquisition of Canadian Gold Resources Ltd. Colibri acquired all outstanding shares of Canadian Gold for $4 M, paid by way of issuance of 24.2 M shares to the vendor. Colibri now owns 100% interest in Minera Bestep S.A. de C.V., a private Mexican company that holds 100% (no NSR’s) of the Pilar and the Sun properties near Suaqui, in Sonora.
  • McEwen Mining Inc. reported a revised record date for the next semi-annual return of capital instalment of a ½ cent per share which will be distributed to shareholders of record on August 14, 2017. The distribution will be paid on August 17, 2017.

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, vuggy silica fragment within a felsic tuff in Chihuahua. Photo by Jorge Cirett.

Vuggy quartz at Moreno

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

During the 31st week of the year (July 31st to August 6th, 2017), at least 27 press releases were announced by companies working in Mexico, including nine second quarter reports. ON MEXICO ISSUES, gold and silver production decreased during the first five months in the Bajío region. ON EXPLORATION, in Sonora Evrim acquired the low sulfidation epithermal Sarape project,  Minaurum is to commence drilling at the Alamos project and SilverCrest released high-grade intercepts from drilling at Las Chispas. In Veracruz Almadex released drilling results from El Cobre project. ON MINING, Capstone, Leagold, Excellon, Gold Resource, Alamos Gold, Avino, McEwen Mining, Endeavour Silver, Hecla and First Majestic presented production and/or financial results for the second quarter of 2017. Telson sent some ore from Tahuehueto for processing. Leagold received the environmental permit of the portal and ramp for the Bermejal underground deposit in Guerrero. ON FINANCING, Four companies announced the opening/closing of financing rounds:  Oceanus ($3 M), Westminster ($750 K), Silver Bull (CDN$ 1.46 M) and Avino ($25 M). Coeur is to exchange up to $250 M in notes. Avino extended a concentrate prepayment agreement.  ON RESOURCES AND DEVELOPMENT, Mexican Gold released a maiden resource for Las Minitas, Veracruz, comprising 304 K AuEq Oz M&I and 719 K AuEq Oz Inferred, in underground and open pit constrained gold-copper mineralization. ON DEALS AND CORPORATE ISSUES, Prospero Silver and Exploraciones Altiplano reached an agreement on the Buenavista claims in Durango. Radius Gold completed the sale of the Talcolula property to Fortuna Silver. Golden granted Hecla the right to use Golden’s oxide plant in Durango for two more years.

ON MEXICO ISSUES

  • INEGI (Instituto Nacional de Estadistica y Geografía) informed that mining production decreased in the Bajio region, with 28.2% less silver produced in Guanajuato, 3.3% in San Luis Potosi and 1% in Queretaro, from January to May 2017. On gold, production was reduced by 15.2% in Guanajuato, 28.8% in San Luis Potosi and 7% in Queretaro.

ON EXPLORATION

  • Evrim Resources Corp. has defined two major veins in the recently acquired Sarape project in Sonora. The Sarape vein trends NW and is 6 km long and up to 12 m in width, whereas the Chiltepin vein trends W and is 2.6 km long and up to 3 m in width. The western portion of the veins presents barren chalcedonic white quartz with bladed calcite, while the eastern part presents low-temperature, tan-green quartz consistently assaying 0.1 to 0.36 g/t Au across sampled widths, with individual samples assaying up to 3.6 g/t Au.
  • Minaurum Gold Inc. is to commence a 5,000 m diamond drilling campaign at its Alamos Silver project in Sonora. The drilling will focus on seven major veins identified by Minaurum, three of which were the source of the historic 200 M Oz silver production. The three other veins are in down-dropped blocks and are exposed at a high level. Areas to be tested include La Quintera, Promontorio, Gap and Minas Nuevas.
  • Almadex Minerals Ltd. reported assay results from the last drill hole on the Norte zone at its El Cobre project in Veracruz. Drill intercepts include 276.80 m @ 0.67 g/t Au, 0.23% Cu (including 103.85 m @ 1.33 g/t Au, 0.41% Cu); 94.40 m @ 0.73 g/t Au, 0.25% Cu (including 62.0 m @0.97 g/t Au, 0.31% Cu). The hole intersected multiple zones of intense stockwork veining and potassic alteration.
  • SilverCrest Metals Inc. announced additional Phase II drill results for Las Chispas property in Sonora. The new results indicate continued expansion of unmined high-grade mineralization in the Giovanni and William Tell veins, initial high-grade intercepts in the Varela vein and newly discovered Blanquita vein. The most relevant drill intercepts are: 1.9 m 6 g/t Au, 5,018 g/t Ag (including 0.7 m @ 137.5 g/t Au, 13,560 g/t Ag); 0.4 m @ 3.7 g/t Au, 506 g/t Ag; 0.7 @ 2.0 g/t Au, 255 g/t Ag; 4.1 m @ 1.7 g/t Au, 232 g/t Ag; 1.0 m @ 2.0 g/t Au, 313 g/t Ag; 1.9 m @ 0.4 g/t Au, 428 g/t Ag; 0.5 m @ 3.1 g/t Au, 595 g/t Ag; 1 m @ 1.2 g/t Au, 362 g/t Ag.

ON MINING

  • Telson Resources Inc. reported that 4,600 tonnes of ore have been sent from the Tahuehueto mine in Durango to the Atocha toll mill, where it is to be processed at a 300 tonnes per day (tpd) rate. Underground mining from the Level 10 ore shoot, estimated to contain at least 50 K tonnes.
  • Capstone Mining Corp. announced its financial results for Q2 2017, including figures from its operations in Mexico. At Cozamin in Zacatecas produced 4,106 tonnes of copper at cash cost of $1.19 per Cu pound and all-in cost of $1.73 per Cu pound produced. The precious metal streaming arrangement with Wheaton Precious Metal Corp. expired on April 4th; this is to result in an increase to by-product credits of $0.23 per copper pound.
  • Leagold Mining Corp. received the environmental permit for development of the portal and ramp for the Bermejal Underground deposit at Los Filos mine in Guerrero. Six tunneling contractors have completed site visits. Contractor selection is to be completed in August. The location of the portal is at the northern end of the Bermejal open pit, site that offers a deeper starting point, shortest distance to access an initial test stoping area and commencement of the portal within competent carbonate wallrock. The 5 x 5 m ramp is to extend 1,600 m to the central, high grade portion of the mineralization. Portal preparation is expected to commence in Q3 2017, with access to the first stoping area early in 2018 and completion of the ramp to the Central Sector by Q4 2018.
  • Excellon Resources Inc. reported financial results for the second quarter 2017. Dry mining conditions were achieved at the Platosa mine in Durango. Mine production increased to 215 tpd, with access to high-grade ore. The goal is to further increase production to 300 tpd by year end. The Miguel Auza mill was awarded Certification of Clean Industry, Level 1 from the environmental regulator. Net working capital totaled $4.0 M at the end of June, increasing to $6.1 M to the end of July. During the quarter 10,840 tonnes were produced and 13,877 tonnes processed @ 394 g/t 3.5% Pb, 4.5% Zn, recovering 89.8% Ag, 80.4% Pb, 80.7% Zn to produce 160.8 K Oz Ag, 850 K Lb Pb, 1.1 M Lb Zn.
  • Gold Resource Corp. disclosed production results for Q2 2017. At its Aguila property in Oaxaca 113.8 K tonnes were milled (1,293 tpd) @ 1.82 g/t Au, 118 g/t Ag, 0.33% Cu, 1.4% Pb, 4.3% Zn with recoveries of 85% Au, 92% Ag, 78% Cu, 77% Pb, 85% Zn to produce 5,696 Oz Au, 397.7 K Oz Ag, 294 tonnes Cu, 1,207 tonnes Pb, 4,176 tonnes Zn. Cash and cash equivalents by the end of period stood at $16.41 M.
  • Alamos Gold Inc. reported financial results for the second quarter 2017, including figures from its operations in Mexico. At Mulatos 1.76 M tonnes of ore and 1.37 M tonnes of waste were moved (waste-to-ore ratio 0.78), with 1.65 M tonnes @ 0.78 g/t Au stacked on the heap (51,564 Oz Au contained) and 35.3 K tonnes of high-grade ore @ 10.56 g/t Au milled (11,998 Oz Au contained). Mulatos produced 41,000 Oz Au during the period, with a recovery rate of 65% and cash cost of $735 per Au ounce. The San Carlos underground operation is expected to end its current mineral reserve in the third quarter of 2017. At El Chanate 1.05 M tonnes of ore were mined (12,000 tpd) @ 0.41 g/t Au and 4.69 M tonnes of waste moved (Waste to ore ratio of 4.47) producing 17,600 Oz Au. Production at La Yaqui is expected in the third quarter of 2017.
  • Avino Silver & Gold Mines Ltd. presented the financial results for the second quarter 2017. During the period 386 K Oz Ag, 1,954 Oz Au, and 1.1 M Lb Cu were produced at cash cost $8.90 per AgEq Oz and AISC of $10.42 per AgEq Oz. At the end of the quarter Avino held $5.9 M in cash and short term investments for $7.5 M.
  • McEwen Mining Inc. disclosed financial results for the second quarter 2017, including figures from its operations in Mexico. At El Gallo 9,714 Oz Au, 4,966 Oz Ag were produced at cash cost $706 and AISC $843 AuEq co-product. At the end of the period debt free McEwen had $44 M in cash, investments and precious metals.
  • Endeavour Silver Corp. released Q2 2017 consolidated financial results. 1.14 M Oz Ag, 13,058 Oz Au were produced at cash cost $ 8.36 and AISC $20.46 per Oz Ag net of Au credits. The Bolañitos and El Cubo mines in Guanajuato produced higher tonnes and/or grades, while Guancevi in Durango continues to lag behind. The Calicanto and Veta Grande properties were acquired near El Compas, in Zacatecas. The working capital stood at $75 M at the period’s end.
  • Hecla Mining Co. reported second quarter 2017 results, including figures from its operations in Mexico. At San Sebastian in Durango, 867 K Oz Ag, 6,596 Oz Au were produced at cash cost $(3.31) per AgEq Oz and AISC of $0.06 per AgEq Oz. The mill operated at 423 tpd during the period. The mine is transitioning from open pit to underground mining, which is expected by the end of 2017. “It now appears that sufficient material has been identified underground, in open pits and in stockpiles to extend the life of the project through 2020…” Cash and cash equivalents stand at $202 M at the end of the period.
  • First Majestic Silver Corp. presented its Q2 2017 financial results. During the period First Majestic produced 2.29 M Oz Ag, or 3.89 M Oz AgEq from its six mines in Mexico, at cash cost $7.41 per Ag Oz and AISC $14.58. The company maintains $126.9 M in cash and cash equivalents at the end of the period. Three illegal blockades affected production at La Parrilla (4 days), Santa Elena (2 days) and La Encantada (42 days). The company expects 64,500 m of underground development to be completed during 2017, as well as 145,000 m of exploration drilling.First Majestic Q2 2017 operating cost11

ON FINANCING

  • Oceanus Resources Corp. closed a non-brokered private placement raising $3 M. Oceanus intends to begin drilling the unmined Protectora vein, north of El Tigre mine in Sonora.
  • Avino Silver & Gold Mines Ltd. Extended the concentrates prepayment agreement with Samsung C&T UK Ltd. for one year. According to the new amending agreement Avino will sell silver concentrate on exclusive basis to Samsung until December 31, 2021 (Avino, Durango).
  • Westminster Resources Ltd. has received conditional approval from the TSX for its previously announced non-brokered private placement, and announces the closing of the first tranche of said placement, for gross proceeds of $764 K (El Cobre, Sonora).
  • Silver Bull Resources Inc. completed the second and final tranche of the private placement for aggregate gross proceeds of CDN$250 K. Under the initial tranche of the private placement, which closed on July 10th, CDN$1.46 M was raised (Sierra Mojada, Coahuila).
  • Coeur Mining Inc. offered to exchange up to $250 M aggregate principal amount of its 5.875% senior notes due 2024 (Palmarejo, Chihuahua).
  • Avino Silver & Gold Mines Ltd. is to offer shares in the US up to the aggregate amount of US$25 M (Avino, Durango).

ON RESOURCES AND DEVELOPMENT

  • Mexican Gold Corp. announced an initial mineral resource estimate fir the El Dorado/Juan Bran and Santa Cruz zones at its Las Minas project in Veracruz. The total measured and indicated (M&I) resource of 304 K AuEq Oz is contained within 4.97 M tonnes grading 1.90 g/t AuEq. The total inferred resource of 719 K AuEq Oz is contained within 10.3 M tonnes grading 2.17 g/t AuEq. The El Dorado/Juan Bran zone occurs as a sub-horizontal body measuring approximately 650 m N-S by 250 m E-W, varying in thickness from 6.0 to 28.0 m. The Santa Cruz zone is comprised of a series of high-grade stacked lenses of skarn mineralization dipping 50 degrees to the west, measuring about 220 m x 100 m. The initial mineral resource estimate is based on 140 diamond drill holes totaling 19,636 m at El Dorado/Juan Bran and Santa Cruz zones. “The Mineral Resource was estimated using 2.0 metre composites of assay values with “zero grade” inserted into intervals that were not sampled.”Table Las Minas1

ON DEALS AND CORPORATE ISSUES

  • Prospero Silver Corp. entered into an option to own agreement with Exploraciones del Altiplano, S.A. de C.V. to earn a 100% right, title and interest in and to Altiplano’s Buenavista claims in Durango, subject to a 2% NSR. The option agreement constitutes a related party transaction. To earn its 100% interest in the Property, Prospero must issue a total of 750 K common shares to Altiplano on a scheduled calendar over 48 months.
  • Radius Gold Inc. completed the sale of its Talcolula property to Fortuna Silver Mines In. On closing Radius received US$150K cash and 239 K common shares of Fortuna, keeping a 2% NSR royalty. Fortuna retains the right to purchase one-half of the royalty by paying Radius US$1.5 M.
  • Golden Minerals Co. has granted Hecla Mining Co. an option to secure the use of Golden’s oxide plant in Durango fro and additional two years for US$2 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, gold grains on a “tentadura” or ore assaying in a cow’s horn in Chihuahua. Photo by Jorge Cirett.

Tentadura from the El Molino zone

 

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

During the 30th week of the year (July 24th to July 30th, 2017), with the presentation of second quarter reports, at least 26 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, gold production decreased 1.7% in 2016 to 4.26 M Oz, but US$2,846 M is to be invested in gold projects between 2017 and 2020. ON EXPLORATION, in Sonora Riverside released first phase exploration results at Cecilia; Aztec released historical drilling results on its Cervantes property. In Durango Southern Silver released drilling results from its Cerro Las Minitas project. In Zacatecas Arian Silver commenced an auger drilling program on its lithium projects; Goldcorp updated exploration efforts in the Altiplano; Zenith completed drilling for lithium in the San Juan salt pan, results pending. In Veracruz Almadex released high grade gold-copper results from continuing drilling at El Cobre. ON MINING, Avino Silver, Americas Silver, Coeur, Goldcorp and Agnico Eagle presented production results for the second quarter of 2017. Great Panther applied for a permit on its tailings facility at Topia, in Durango. ON FINANCING, Torex Gold signed an amended agreement on a credit facility for US$400 M; Santacruz closed the first tranche of a non-brokered private placement for $935 K ON RESOURCES AND DEVELOPMENT, Candelaria submitted a MIA (environmental application) on its Caballo Blanco property in Veracruz. Excellon reported high-grade drilling results from its Platosa mine in Durango. ON DEALS AND CORPORATE ISSUES, Goldcorp and Evrim reached an agreement on La Pinta 6 concession in Zacatecas.

ON MEXICO ISSUES

  • Camimex (Cámara Minera de México) informed 12 companies are to invest US$2,846 M in gold projects between 2017 and 2020 in Mexico, with Torex Gold, Goldcorp and Fresnillo PLC leading the list. Present and coming projects include the expansion of Pan American’s Dolores mine expansion (Durango, 112 M), Argonaut’s San Agustin (Durango, 43 M), Alamos Gold’s La Yaqui (Sonora, 12 M), Torex’s Media Luna (Guerrero, 482 M), Goldcorp’s sulfide leach plant at Peñasquito (Zacatecas, 420 M), Fresnillo’s Orisyvo (Chihuahua, 350 M) and the Fresnillo and Mag Silver’s JV on Juanicipio (Zacatecas, 305 M). In 2016, Mexico produced 4.26 M Oz, a 1.7% reduction on the previous year.

ON EXPLORATION

  • Arian Silver Corp. commenced an auger drill program on its lithium projects in Zacatecas. The properties to be auger drilled down to a vertical depth of 20 m are Pozo Hondo, Columpio and Abundancia, to test lithium grades and volumes.
  • Almadex Minerals Ltd. released results from its more recent drill hole at the Norte zone of its El Cobre property in Veracruz. From 204.1 m an interval of 431.9 m @ 0.86 g/t Au, 0.27% Cu was intercepted, including 40.45 m @ 1.38 g/t Au, 0.43% Cu; 46.2 m @ 1.04 g/t Au, 0.29% Cu; 70.45 m @ 2.32 g/t Au, 0.59% Cu.
  • Aztec Minerals Corp. pretends to drill test its Cervantes property in Sonora by September or October. Results of past drilling by Peñoles on the California target in 1996 include 22.1 m @ 0.21 g/t Au; 23.0 m @ 0.40 g/t Au; 99.4 m @ 0.40 g/t Au (including 29.5 m @ 0.74 g/t Au; 88.1 m @ 0.42 g/t Au (including 16.8 m @ 1.16 g/t Au; 141.1 m @ 0.41 g/t Au (including 40.9 m @ 0.96 g/t Au); 42.6 m @ 0.47 g/t Au. A 50 x 50 m soil survey was completed the previous week on the Jasper copper target, where the IP anomaly of the California target continues. A total of 60 rock chip samples were recently collected at two additional copper oxide locations, and a channel sampling program across the gold soil anomaly will commence shortly on the California target.
  • Goldcorp Inc. released an exploration update on the Altiplano around its Peñasquito mine in Zacatecas. Exploration was focused on ground validation of 13 targets identified on the first quarter, as well as regional rock chip and selective leach soil sampling at a 1 km grid spacing near the mine. Biogeochemical sampling of creosote plants is also to be used. A 15,000 m program of reverse circulation (RC) holes to the top of bedrock is to evaluate targets overlain by Tertiary cover in several valleys. Detailed mapping and re-logging of core from the Noche Buena and Santa Rosa projects was carried out.
  • Riverside Resources Corp. released results from the first phase of exploration at its Cecilia project in Sonora. The second batch of samples include 8.0 and 9.7 m wide zones at the North Breccia zone averaging 3.90 g/t Au and 1.2 g/t Au respectively. About 400 m SW from the North Breccia zone a fault zone assayed 5.4 g/t Au over 3.0 m. Several priority drill targets have been selected and the process for drill permitting has started. The target is a low sulfidation epithermal mineralization system within and beneath a felsic volcanic flow-dome complex which has been defined in an area of 1,200 x 400 m, and over 400 m of vertical span.
  • Southern Silver Exploration Corp. released recent results from its current drilling campaign at Cerro Las Minitas, Durango. The last hole intersected 12.5 m true width (TW) @ 154 g/t Ag, 2.0 g/t Au, 3.2% Pb, 3.9% Zn (including 3.0 m TW @ 329 g/t Ag, 4.6 g/t Au, 7.4% Pb, 7.3% Zn); 9.2 m @ 220 g/t Ag, 0.3% Cu, 3.6% Pb, 5.4% Zn.
  • Zenith Minerals Ltd. completed a shallow drilling program at the Zacatecas Lithium project. The 11 auger holes reached a maximum of 27 m of depth at the San Juan salt pans, recovering sediment and brine samples. The brines were within 5 to 15 m of the surface. Drilling results are expected within four weeks.

ON MINING

  • Avino Silver & Gold Mines Ltd. reported second quarter 2017 production results from its Avino property in Durango. At the Avino mine 115.5 K tonnes were mined, 117.4 K tonnes milled @ 76 g/t Ag, 0.53 g/t Au, 0.49% Cu, recovering 84% Ag, 69% Au, 89% Cu to produce 241.7 K Oz Ag, 1,384 Oz Au, 1.13 M Lb Cu. At the San Gonzalo mine 21.2 K tonnes were mined, 20.1 K tonne milled @ 277 g/t Ag, 1.19 g/t Au, recovering 81% Ag, 74% Au to produce 144.3 K Oz Ag, 570 Oz Au.
  • Americas Silver Corp. provided second quarter 2017 production results, including figures from its Cosalá operations in Sinaloa. At Cosalá 134.8 K tonnes of ore were milled @ 66 g/t Ag to produce 242.5 K Oz Ag, 273.5 K Lb Cu, 1.35 M Lb Pb, 2.9 M Lb Zn, or 564.1 K Oz AgEq at cash cost ($2.43) and AISC ($2.43).
  • Coeur Mining Inc. reported second quarter 2017 financial results, including figures from its operations in Mexico. At Palmarejo in Chihuahua 335.8 K tons were mined @ 155 g/t Ag, 2.49 g/t Au, with 335.4 K tons milled and a recovery rate of 87.3% Ag, 91.1% Au to produce 1.45 M Oz Ag, 24,292 Oz Au. Mining rates were 2,600 tons per day (tpd) at Guadalupe and 1,000 tpd at Independencia. Exploration expenses during the quarter were $3.1 M, to accelerate resource expansion and new target definition efforts.
  • Goldcorp Inc. released its second quarter 2017 results, without detail on figures from its various operations in several countries, including Mexico. The by-product cash cost per gold ounce was $510 and all-in sustaining cost (AISC) $800 per gold ounce.
  • Agnico Eagle Mines Ltd. reported second quarter 2017 results, including information on its Mexican operations. At Pinos Altos in Chihuahua 620 K tonnes were processed (6,811 tpd) @ 2.65 g/t Au, to produce 48,196 Oz Au at cash cost $595 per Oz Au and total cash cost of $373 per Oz Au. In late June a new silver flotation circuit was commissioned, and a 10-12% increase in silver recovery is expected. At Creston Mascota, which operates as a satellite operation to Pinos Altos, 596 K tonnes were processed (6,554 tpd) @ 1.17 g/t Au, to produce 12,074 Oz Au at cash cost $610 per Oz Au and total cash cost $550 per Oz Au. Recent drilling of the Bravo and Madrono zones at Creston Mascota has intersected 18.2 m (TW) @ 1.6 g/t Au; 5.4 m @ 10.9 g/t Au; 12.3 m @ 1.7 g/t Au; 10 m @ 1.4 g/t Au; 13.6 m @ 1.4 g/t Au; 13.6 m @ 1.9 g/t Au; 3.5 m @ 4.2 g/t Au; 8.2 m @ 2.5 g/t Au; 5.4 m @ 3.3 g/t Au. At La India in Sonora, 1.33 M tonnes were processed (14,605 tpd) @ 0.65 g/t Au, to produce 24,211 Oz Au at cash cost $617 per Oz Au and total cash cost $552 per Oz Au. The company is evaluating location options to construct additional pad capacity. At the El Barqueño project in Jalisco, 18,200 m of drilling were completed in 55 holes, focusing on the extension of the Azteca-Zapoteca zone, as well as at the Tecolote, San Diego and Olmeca prospects.
  • Great Panther Silver Ltd. has resubmitted the permit application in connection with the Phase II Tailings Storage Facility (TSF) at Topia, Durango, and expects a response with 60 days from SEMARNAT. Normal operations will continue using the existing Phase I TSF, although the deposition of dry tailings cannot continue indefinitely and avoidance of disruption cannot be assured.

ON FINANCING

  • Torex Gold Resources Inc. signed an amended and restated credit agreement with BNP Paribas, Commonwealth Bank of Australia, ING Capital LLC and SG Americas Securities, in connection with the previously announced secured US$400 M debt facility (Los Guajes-El Limon).
  • Santacruz Silver Mining Ltd. closed the first tranche of the previously announced non-brokered private placement for gross proceeds of $935 K (Rosario, Cinco Estrellas in San Luis Potosi).

ON RESOURCES AND DEVELOPMENT

  • Candelaria Mining Corp. submitted the environmental Impact assessment report (MIA) to SEMARNAT (Mexican environmental authority). The company has already received an exploration permit for a 2,000 m program at the La Paila zone, which holds the current resource. Exploration permits for 7,500 m of drilling on several other areas are under preparation. Additional metallurgical test work, re-design of the conceptual pit, resource update, water supply studies and ore and waste rock characteristic studies are to be advanced.
  • Excellon Resources Inc. reported high-grade drilling results from the current program at the Platosa mine in Durango, of which 15,000 m have been completed on 120 drill holes from surface and underground. Relevant intersections include 2.19 m @ 104 g/t Ag, 2.6% Pb, 1.2% Zn; 3.45 m @ 124 g/t Ag, 5.2% Pb, 5.2% Zn; 6.76 m @ 886 g/t Ag, 8.8% Pb, 20.5% Zn; 1.45 m @ 2,995 g/t Ag, 16.4% Pb, 0.9% Zn; 1.06 m @ 1,171 g/t Ag, 9.3% Pb, 2.9% Zn; 3.70 m @ 1,600 g/t Ag, 6.4% Pb, 8.7% Zn; 1.80 m @ 316 g/t Ag, 3.2% Pb, 0.9% Zn; 1.30 m @ 287 g/t Ag, 6.3% Pb, 0.6% Zn; 1.27 m @ 3,574 g/t Ag, 28.2% Pb, 18.7% Zn; 2,10 m @ 1,238 g/t Ag, 5.3% Pb, 2.9% Zn.

ON DEALS AND CORPORATE ISSUES

  • Goldcorp Inc. reached an agreement with San Marco Resources Inc. to acquire the La Pinta 6 concession, adding 80 Km2 contiguous to Noche Buena, providing early stage targets.

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, kaolin mine in argillitized tuffs in eastern Chihuahua. Photo by Jorge Cirett.

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

During the 29th week of the year (July 17th to July 23rd, 2017), with the reporting of second quarter reports, at least 21 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, no relevant news. ON EXPLORATION, in Sonora Azure informed of exploration activities by Teck on the Alacrán project, and San Marco Resources announced the discovery of an intrusive breccia on its Chunibas property. In Durango Southern Silver disclosed exploration efforts on the recently acquired Biznaga and Lencho claims. ON MINING, Leagold, Sierra Metals, Premier Gold, Gold Resource and Excellon presented production results for the second quarter of 2017. Telson initiated servicing of milling and mining equipment at Campo Morado.  ON FINANCING, Alio Gold completed a bought deal offer for C$50.4 M; Southern Silver extended the closing date of the second tranche of financing; Telson resources closed the final tranche of the private placement, paying $700 K to Nyrstar; Monarca Minerals closed the second tranche of financing for $434 K; Premier Gold was granted permission to repurchase up to 19.6 M of its issued shares. ON RESOURCES AND DEVELOPMENT, Americas Silver updated development efforts on San Rafael; Almaden reported further high grade drilling results from its Tuligtic project; Kootenay reported a new target at La Cigarra; Mx Gold informed of advance on the Magistral project. ON DEALS AND CORPORATE ISSUES, Evrim signed a two year exploration alliance with Newmont; Red Tiger was reclassified as Tier 2 in the TSX.

ON MEXICO ISSUES

  • No Relevant News.

ON EXPLORATION

  • Southern Silver Exploration Corp. informed on exploration efforts for epithermal vein systems on the recently acquired Biznagas and Los Lencho claims in Durango, adjacent to its Cerro Las Minitas property (Skarn/CRD mineralization). Multiple float samples returned up to 1.3 g/t Au, 57 g/t Ag, 1,155 ppm As, 777 ppm Sb, 46 ppm Hg. Interesting results include a four square km Ag-As-Au-Pb-Zn anomaly in the middle of the Biznagas claim and a four km long Ag-Au-As-Hg anomaly. Over 750 samples have been collected, mostly of quartz (locally bearing black bands of fine grained sulfides) and rhyolite float, with results received for 415 of the samples. Drill targeting is scheduled for the Fall of 2017.
  • Azure Minerals Ltd. informed on the advance that Teck Resources Ltd. has achieved during the Q2 2017 on the Alacran project in Sonora, on which Teck is earning an initial 51% interest by spending US$10M by the end of 2020. Exploration activities include geochemical, hyperspectral and geochronological studies, geological mapping, surface sampling and  geophysical surveys, prior to drill-testing the identified targets by the third quarter.
  • San Marco Resources Inc. increased from four to six holes the HQ core drilling program at its Chunibas project in Sonora, after the discovery of a new multi-lithic and highly altered intrusive breccia associated to the mineralization. The most interesting intervals are 39.0 m @ 0.67 g/t Au (including 20 m @ 1.05 g/t Au); 21 m @ 0.58 g/t Au (the hole ended with 1.2 m @ 2.42 g/t Au); 3.3 m @ 5.05 g/t Au (a separate interval at the end of the hole: 2.2 m @ 1.05 g/t Au). The mineralization style being tested was on shear zones and wall rock dissemination, the mineralized breccia changes the scope of future drilling. Assays are pending for the last three holes.

ON MINING

  • Leagold Mining Corp. reported second quarter 2017 production results at Los Filos mine in Guerrero. The mine produced 46,098 Oz Au, and the company ended the period with a cash balance of $65 M and operations being cash flow positive. An agglomeration drum is being reinstalled and an overland conveyor extended as part of an optimization plan. The Bermejal underground expansion project is advancing with 10 drill rigs on the 56,000 m infill and step-out program. A new processing facility is being evaluated for the higher grade underground ore.
  • Sierra Metals Inc. announced 2Q 2017 production results, including figures from its Cusi and Bolivar mines in Chihuahua. At Bolivar 192,937 tonnes were processed at 2,205 tpd (tonnes per day) @ 0.97% Cu, 15 g/t Ag, 0.17 g/t Au, with 76% Cu, 75.2% Ag, 58.3% Au recoveries, to produce 3.1 M Lb Cu, 73 K Oz Ag, 620 Oz Au. At Cusi 23,956 tonnes were processed (274 tpd) @ 189 g/t Ag, 0.27 g/t Au, 1.1% Pb, 1.1% Zn, with 65.4% Ag, 60.7% Au, 78.0% Pb, 45.8% Zn recoveries, to produce 95 K Oz Ag, 126 Oz Au, 457 K Lb Pb, 262 K Lb Zn.
  • Premier Gold Mines Ltd. presented second quarter 2017 production results from its Mercedes mine in Sonora. During the period 21,893 Oz Au, 89,474 Oz Ag were produced.
  • Gold Resource Corp. reported preliminary second quarter 2017 production results from its Aguila project in Oaxaca. During the period 5,696 Oz Au, 397.7 K Oz Ag, 294 tonnes Cu, 1,207 tonnes Pb, 4,176 tonnes Zn were produced.
  • Excellon Resources Inc. released second quarter 2017 production results from the Platosa mine in Durango. At the site 10,840 tonnes were mined, 13,877 tonnes milled @ 394 g/t Ag, 3.5% Pb, 4.5% Zn, recovering 89.8% Ag, 80.4% Pb, 80.7% Zn to produce 160,820 Oz Ag, 850.1 K Lb Pb, 1.11 M Lb Zn. With the dry mining conditions achieved (see last week Highlights edition) higher grade zones can be now mined at greater rates.
  • Telson Resources Inc. has initiated hiring and training of personnel whom are currently servicing all milling and mining equipment located at the mine site. Telson is planning to restart mining employing block caving versus Nyrstar’s room and pillar mining methods, to potentially reduce mining costs. If offtake funding is achieved successfully the company hopes to initiate mining at Campo Morado within three months. During 2014 Campo Morado processed 657 K tonnes of ore @ 1.2 g/t Au, 115.7 g/t Ag, 4.6% Zn, 1.2% Cu, 0.9% Pb.

ON FINANCING

  • Southern Silver Corp. extended the closing date for its brokered private placement to August 16th, 2017. The first tranche was closed on June 13th for a total of $2.55 M (Cerro Las Minitas, Durango).
  • Alio Gold Inc. completed the previously announced bought deal offering for aggregate gross proceeds of C$50.39 M (San Francisco, Sonora).
  • Telson Resources Inc. closed the final tranche of the private placement previously announced, issuing 1.732 M shares at 55 cents per share, and paid an additional US$700 K to Nyrstar Mining. The funding was received from Estratégica Corporativa en Finanzas, a related party of Telson. The related party is a significant shareholder with a control position in the Company (Campo Morado, Guerrero).
  • Monarca Minerals Inc. completed the second tranche of its previously announced non-brokered private placement for gross proceeds of $434 K, and aggregate gross proceeds of $2.15 M (Tejamen, Durango).
  • Premier Gold Mines Ltd. received approval of the Toronto Stock Exchange (TSX) for a normal course issuer bid to purchase up to 19.6 M of its issued and outstanding common shares (Mercedes, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Americas Silver Corp. provided an update on the San Rafael project in Sinaloa. At the end of the second quarter approximately US$10.5 M of a US$18 M budget have been spent. The main ramp and a secondary ramp continue its development; the secondary ramp is expected to allow mining to begin by early August. Mill modifications are progressing and commissioning of the new equipment is set for the second half of August. In the second quarter 2017 a 2,700 m 8-hole definition drill campaign was completed over the Zone 120 area. Presently four more holes are testing the connection with El Cajón mine. Current production continues primarily from the Nuestra Señora mine. El Cajón stockpiles are available until San Rafael production commences at the end of the quarter.
  • Almaden Minerals Ltd. reported more drilling results from the exploration and development program at its Tuligtic project in Puebla. Relevant intercepts comprise 18.25 m @ 0.69 g/t Au, 263 g/t Ag; 26 m @ 0.19 g/t Au, 346 g/t Ag; 21.0 m @ 1.57 g/t Au, 49 g/t Ag; 11.0 m @ 1.85 g/t Au, 106 g/t Ag; 23.5 m @ 0.26 g/t Au, 66 g/t Ag; 19.25 m @ 1.05 g/t Au, 73 g/t Ag.
  • Kootenay Silver Inc. announced that detailed sampling and reconnaissance work identified a drill target within the La Navidad zone at its La Cigarra property in Chihuahua. The new zone measures up to 1,000 m long by 300 m wide, and is 500 m from the San Gregorio zone, which hold 60% of the current resource at La Cigarra.
  • Mx Gold Corp. announced that on its Joint Venture with GracePoint Mining Corp. a subsidiary or Firma Holdings Corp. the Magistral project is progressing on schedule. “The project includes a fully permitted 500 TPD Dynamic Cyanide counter current system plant. Construction of the plant was completed in 2013, for approximately $4.5 million. There is a current build out, underway, to bring the plant to 1,000 tonnes per day capacity.” The project includes the right to process 1.2 M tonnes of tailings grading 2.06 g/t Au.
  • Consolidated Zinc Ltd. released results from the infill drilling focused on the increase of resources on the Tres Amigos area of its Plomosas property in Chihuahua. Best results include 1.75 m @ 9.4% Zn, 1.7% Pb, 9 g/t Ag; 0.95 m @ 10.9% Zn, 6.7% Pb, 23 g/t Ag; 0.55 m @ 31.2 % Zn, 0.2% Pb, 9 g/t Ag. Consolidated is to drill additional holes aiming to include further mineralization in an upcoming JORC resource upgrade.

ON DEALS AND CORPORATE ISSUES

  • Evrim Resources Corp. signed a two-year Exploration Alliance with Newmont Mining Corp. The alliance is to focus in generating greenfield exploration in terranes favorable for world-class gold orebodies. Newmont is to have the right to designate one or more projects for option by making certain cash payments to Evrim and solely fund the exploration on the project for up to 10 years, or until a NI 43-101 compliant pre-feasibility study on a greater than 2 M Oz gold resource, point at which Newmont will have 80% interest in the project. Evrim will be the operator for the initial US$5 M in exploration expenditures.
  • Red Tiger Mining Inc. continues to produce copper cathodes from the residual leaching of its leach pad, having ceased mining operations at the Luz del Cobre mine in Sonora on December of 2016. Red Tiger has been unable to file its annual consolidated financial statements and Management Discussion & Analysis (“MD&A”) for 2016. The company has been reclassified as Tier 2 by the TSX Venture Exchange.

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, strong goethite and hematite staining on silicified sandstone in eastern Chihuahua. Photo by Jorge Cirett.

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

During the 28th week of the year (July 10th to July 16th, 2017), with the reporting of second quarter reports, at least 21 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, no relevant news. ON EXPLORATION, in Sonora Pan American Silver is drilling La Negra. In Sinaloa Santana released drilling results from Cuitaboca. In Durango Southern Silver released more assays from drilling at Cerro Las Minitas. In Chihuahua Harvest Gold updated its exploration effort at Cerro Cascaron., and In Veracruz Mexican Gold has awarded a ground magnetic survey on its Las Minas project.  ON MINING, First Majestic, McEwen Mining, Fortuna Silver, Great Panther, Cozamin and Endeavour Silver presented production results for the second quarter of 2017. Excellon achieved dry mining conditions at Platosa.  ON FINANCING, Silver Bull completed the first tranche of a private placement, raising CDN$1.46 M, while Silver Spruce raised $166.5 K. ON RESOURCES AND DEVELOPMENT, Leagold presented results from 20 holes on the Bermejal underground deposit. ON DEALS AND CORPORATE ISSUES, Alset acquired five more salars in Zacatecas and Leagold received approbation from government’s agency COFECE respect financing in connection with the Los Filos mine purchase.

ON MEXICO ISSUES

  • No Relevant News.

ON EXPLORATION

  • Kootenay Silver Inc. informed that Pan American Silver Corp. commenced a drill program on La Negra, a silver discovery within its Promontorio project in Sonora. The program will total over 4,000 meters of core drilling over 25 holes, focusing in infill drilling and step out holes to depth.
  • Santana Minerals Ltd. reported the remainder assay results for the recently completed RC drill program at the Mojardina prospect within its Cuitaboca project in Sinaloa. Highlights comprise 6 m @ 100 g/t Ag, and 12 m @ 148 g/t Ag in one hole; 32 m @ 104 g/t Ag and 5 m @ 93 g/t Ag in other hole; 12 m @ 118 g/t Ag; 5 m @ 121 g/t Ag. A new zone of mineralization was identified at the south end of the structure and mineralization remains open at depth and along strike below Evangelina and Las Animas.
  • Southern Silver Exploration Corp. reported further assay results deeper on the hole previously reported with copper enrichment (32.8 m @ 105 g/t Ag, 0.9% Cu) at its Cerro Las Minitas project in Durango. The new intercepts include 1.8 m @ 406 g/t Ag, 3.8% Cu, 0.6% Pb, 0.6% Zn; 8.1 m @ 49 g/t Ag, 1.2% Cu. “The entire mineralized interval occurs within a broad zone of veined sulphides and breccia that extend into the skarn-altered margin of the central intrusion and is significant in that it represents the thickest zone of higher grade mineralization hosted within the monzonite identified to date. The interval is strongly copper enriched (up to 3.7% over 4.8 metres) and may represent a transition into a mineralized endoskarn which remains open down-dip and along strike to the northeast.”
  • Harvest Gold Corp. provided an update on exploration at its Cerro Cascaron project in Chihuahua. In the Main Cerro Cascaron vein Field a low to intermediate sulfidation epithermal system includes 14 veins 70 to 1,980 m in length (over 11 km cumulative length), where some good intervals sampled include 1.3 m @ 12 g/t Au, 54 g/t Ag; 0.9 m @ 10.5 g/t Au, 46 g/t Ag; 1.4 m @ 5.6 g/t Au, 45 g/t Ag; 5.4 m @ 2.1 g/t Au, 14 g/t Ag; 6.3 m @ 2.1 g/t Au, 29 g/t Ag. The 200 m by 300 m Stockwork area presents multiple sub-parallel structures and breccias cutting the lower part of the rhyolite sequence. La Reyna/El Rico Veins are tourmaline rich silver and base metals veins and breccias where grab samples have returned up to 1.8 g/t Au, 516 g/t Ag. At La Prieta target tourmaline and quartz in a hydrothermal breccia returned 0.56 to 39.7 g/t Au in four samples. The Divisadero Veins are in the largest alteration zone, with limited sampling returning 0.1 to 599 g/t Ag, and locally up to 9.2 g/t Au. At La Cascarita intermediate sulfidation veins and breccias up to 3 m in width have been traced for over 150 m and are still open to the NE and SE. initial sampling here has returned up to 1,170 g/t Ag, 2.7 g/t Au, 1.0% Zn, 1.6% Pb.
  • Mexican Gold Corp. has engaged Geofisica TMC to complete a ground magnetic survey at the Cinco Señores zone at Las Minas, Veracruz.

ON MINING

  • First Majestic Silver Corp. reported second quarter 2017 production results from its six mines in Mexico. The company processed 691.8 K tonnes (7,603 tonnes per day, or tpd) averaging 130 g/t Ag, to produce 2.29 M Oz Ag, 15,186 Oz Au, 7.6 M Lb Pb, 860 K Lb Zn.First Majestic Produces 3.9M Silver Eqv3
  • McEwen Mining Inc. reported production results for Q2 2017, including 9,780 AuEq Oz from El Gallo mine in Sinaloa. Production in the second half of the year is expected to improve with the higher gold grade to be mined.
  • Fortuna Silver Mines Inc. released second quarter 2017 production results, including information from the San Jose Mine in Oaxaca, where 268.4 K tonnes were milled (1,483 tpd) @ 238 g/t Ag with a recovery of 91.8% to produce 1.887 M Oz Ag; and 1.82 g/t Au with a recovery of 91.5% to produce 14,410 Oz Au.
  • Excellon Resources Inc. has achieved dry mining conditions and completed its mine optimization plan at Platosa, in Durango. Two booster stations and 12 submersible pumps were installed and commissioned; drawdown rates met or exceeded the forecasts, with pumping rates over 30 K gpm. The mine still has to transition to higher production rates, possible under dry mining conditions.
  • Great Panther Silver Ltd. announced production results for the second quarter 2017. At the Guanajuato Mine Complex 80.5 K tonnes were milled @ 150 g/t Ag, 2.32 g/t Au, recovering 89.5% Ag, 87.2% Au, to produce 348.1 K Oz Ag, 5,247 Oz Au. At Topia in Durango, 18,041 tonnes were milled @ 414 g/t Ag, 0.74 g/t Au, recovering 92% Ag, 68.6% Au, to produce 221.1 K Oz Ag, 296 Oz Au, 405 tonnes Pb, 638 tonnes Zn. The company continues its efforts to obtain the Phase II permit on the tailings storage facility.
  • Endeavour Silver Corp. reported its production results for the second quarter 2017, when 1.143 M Oz Ag, 13,057 Oz Au were produced on its three Mexican mines.Endeavour SilverNews2
  • Capstone Mining Corp. announced production results for the second quarter 2017, including from its Cozamin mine in Zacatecas. By processing 230.8 K tonnes (2,536 tpd) @ 1.85% Cu, 0.55% Zn, 0.07% Pb, 40 g/t Ag (recoveries of 96.1% Cu, 62% Zn, 11.4% Pb, 79.6% Ag) 3,774 tonnes of copper plus Zn and Pb concentrates were produced.

ON FINANCING

  • Silver Bull Resources Inc. has completed the initial tranche of its previously announced private placement, for aggregate gross proceeds of CDN$1.46 M (Sierra Mojada, Coahuila).
  • Silver Spruce Resources Inc. closed its current non-brokered private placement and raised gross proceeds of $166.5 K (Pino de Plata, Chihuahua).

ON RESOURCES AND DEVELOPMENT

  • Leagold Mining Corp. reported drilling results for the first 20 holes of its infill and step-out exploration program in the Bermejal Underground deposit at the Los Filos mine in Guerrero. Over 12,900 m (23%) of the 56,000 m program have been completed, with eight diamond rigs and two reverse circulation rigs in operation. The mineralization occurs along contacts between the intrusive and the carbonate host rock, extending approximately 1,600 meters along the strike of the intrusive contact and has a vertical depth extent of over 600 meters. True width intercepts include 18.8 m @ 7.2 g/t Au; 13.3 m @ 6.8 g/t Au; 2 m @ 26.3 g/t Au; 18.9 m @ 3.8 g/t Au; 16.35 m @ 5.0 g/t Au; 25.96 m @ 3.3 g/t Au; 8.24 m @ 6.0 g/t Au; 1.52 m @ 20.2 g/t Au.

ON DEALS AND CORPORATE ISSUES

  • Alset minerals Corp. will acquire 100% interest in five more salars in zacatecas by issuing 4 M shares plus a 2.5% NSR to Hot Spring Mining, a Mexican mining company. Alset will have the right to purchase up to 1.5% of the NSR for CAD $500 K for each half-percent. Two managing partners of Hot Spring Mining will be paid a consulting fee of $1500 CAD each per month for an initial six month period which can be extended.
  • Leagold Mining Corp. received approval from the Mexican anti-trust commission (COFECE) with respect to the US$ 29 M subscription receipt financing provided by a fund managed by Orion Resource Partners in connection with the acquisition of the Los Filos mine from Goldcorp.

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, porphyritic andesitic dike with chilled margins intruding andesitic tuffs in Jalisco. Photo by Jorge Cirett.

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

During the 27th week of the year (July 3rd to July 9th, 2017), as summer takes hold and enterprises reduce media activity, at least 10 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, no relevant news. ON EXPLORATION, in Coahuila Discovery Metals assembled a large land package to search for CRD deposits.  ON MINING, US Antimony is to proceed with a cyanide leach circuit and increasing its workforce at Wadley in San Luis Potosi; In Chihuahua Consolidated zinc released high grade results from sampling at Plomosas. In Durango Telson secured mill processing for ore from its Tahuehueto mine. In Sonora Alio Gold reported second quarter 2017 production. ON FINANCING, Sierra Metals has been approved to list on the NYSE MKT. ON RESOURCES AND DEVELOPMENT, No relevant news. ON DEALS AND CORPORATE ISSUES, Autlan sold its stake on GFM Resources to its affiliate Metallurum Holdings. Discovery Metals and Leagold announced high-profile new members on their respective boards.

ON MEXICO ISSUES

  • No Relevant News.

ON EXPLORATION

  • Discovery Metals Corp. recently assembled a land package of approximately 300 K hectares over a large historical mining district in Coahuila. The portfolio of seven key properties is situated in a world class carbonate replacement deposits (CRD) corridor that stretches from Southern Arizona to Central Mexico. “The land holdings contain numerous historical direct-ship ore workings with over 4,000 m of underground development. No modern exploration or exploration drill testing has been carried out on the properties.”

ON MINING

  • United States Antimony Corp. reported that the milling and flotation of 400 tonnes of material from the Los Juarez deposit in Queretaro recovered 52.8%, 49.6% and 31.5% of gold, silver and antimony respectively, while cyanide testing of the mill tailings were excellent, allowing for an estimated recovery of 90% gold, 90% silver and 70% antimony. The company will proceed with the construction of the cyanide leach circuit for the Puerto Blanco mill tailings when the permit is approved by SEMARNAT. Meanwhile, the underground miners have been increased to 90 men at the Wadley deposit in San Luis Potosi, and plans are underway to reopen the Guadalupe deposit in Zacatecas.
  • Consolidated Zinc Ltd. informed that sampling on the Las Espadas area of its Plomosas mine in Chihuahua proceeded over 150 m of strike length of remnant massive sphalerite and galena mineralization averaging 0.95 m @ 32.1% Zn, 14.9% Pb. “The Las Espadas area is defined by the presence of the Mina Veija Manto, with mineralisation occurring in the footwall as massive sulphides, comprising typical low iron sphalerite and galena.”
  • Alio Gold Inc. reported preliminary production results for the second quarter of 2017. The San Francisco mine in Sonora processed 1.93 M tonnes @ 0.47 g/t Au, while moving 4.3 M tonnes of waste (2.6 Waste to Ore ratio) to produce 22,011 Oz Au, 10,332 Oz Ag.
  • Telson Resources Inc. entered into an agreement with Compañia Minera de Atocha, S.A. de C.V. (with a mill in Tepehuanes, Durango) for the process during 2017 of at least 21 K tonnes of ore from its Tahuehueto mine in Durango. Ore is being mined from the same location as the previous 3,500 tonne bulk sample @ 9.5 g/t Au, 64 g/t Ag, 3.5% Pb, 6.2% Zn for USD$1.47 M in revenue. Underground production is now proceeding at 200 tonnes per day (tpd) from an ore shoot estimated to contain at least 50 K tonnes.

ON FINANCING

  • Sierra Metals Inc. announced that its common shares have been approved for listing on the NYSE MKT. The common shares will continue to trade on the Toronto Stock Exchange and the Lima Stock Exchange (Cusi and Bolivar, Chihuahua).

ON RESOURCES AND DEVELOPMENT

  • No relevant news.

ON DEALS AND CORPORATE ISSUES

  • Compañía Minera Autlán S.A.B. de C.V. sold 16.37 M common shares of GFM Resources Ltd to its affiliate Metallurum Holding, S.A.P.I. de C.V.. The shares represent 85.77% of the issued and outstanding shares of GFMR, and represent all the shares held by Autlan. Metallorum paid Autlan CAD$264 in cash, or less than 115% of the most recent closing market price of GFMR (Molango, Hidalgo).
  • Discovery Metals Corp. announced the appointment of Murray John as Chairman of the Board and the appointment of Jose Alberto Vizquerra Benavides to the Board. The company also created and advisory committee consisting of Arturo Bonillas, Cal Everett, Craig Roberts, Moira Smith and Sean Tetzlaff (Large land package, Coahuila).
  • Leagold Mining Corp. announced the appointment of Tristan Garel Jones as an independent non-executive director. Tristan is a well-known English politician that has held several high-profile posts (Los Filos, Guerrero).

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, a dry lake bed in northern Chihuahua produces a mirage, there is no standing water. Photo by Jorge Cirett.

pano2

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

During the 26th week of the year (June 26th to July 2nd, 2017), at least 25 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, no relevant news. ON EXPLORATION, in Sinaloa, Santana Minerals reported drilling results from Cuitaboca; In San Luis Potosi Zenith Minerals started drilling for lithium; in Veracruz Almadex released more drilling results from a new zone at El Cobre; In Zacatecas, Galore terminated an unsuccessful drill program on the San Jose claim.  ON MINING,  Mexus Gold continues with the start-up of the Santa Elena mine in Sonora,  Arian Silver presented financial results for 2016. Santacruz reached a high-grade zone on the Membrillo vein in San Luis Potosi. ON FINANCING, Alio Gold raised CDN$50 M; Minera Alamos closed a private placement for $5.4 M; Minaurum received $3.5 M from warrants; Wealth Minerals obtained $3.3 M on the first tranche of a non-brokered private placement; Santacruz is to run a non-brokered private placement for $5 M; Monarca  Minerals settled a $463 K debt by issuing shares; Hecla announced a cash tender offer for its 6.875% senior notes, due 2025. ON RESOURCES AND DEVELOPMENT, Goldgroup informed the Switchback vein system in Oaxaca continues to grow; Oceanus released the full assays on a high-grade intercept at El Tigre, Sonora. ON DEALS AND CORPORATE ISSUES, Teck agreed to purchase the 21% interest held by Goldcorp on San Nicolás, Zacatecas; On the San Jose concession in Zacatecas, an unsuccessful drill program ended with the termination of Galore’s VP of Exploration. Santacruz is to sell its Gavilanes project in Durango.

ON MEXICO ISSUES

  • No Relevant News.

ON EXPLORATION

  • Zenith Minerals Ltd. commenced a near surface, 11 auger holes, drill program on a salt pan 4 km long by 2 km in width in San Juan del Salado, San Luis Potosi . The drilling is to test for near surface lithium brines to a maximum depth of 25 meters. Both sediments and brines are to be sampled.
  • Almadex Minerals Ltd. received assays for the top 300 m of its first hole in the El Encianl zone of the El Cobre project in Veracruz. A 296.7 m intercept @ 0.32 g/t Au, 0.13% Cu includes 51.73 m @ 0.42 g/t Au, 0.17% Cu; and 100.47 m @ 0.44 g/t Au, 0.15% Cu. Almadex interpretation is that this hole intercepted significant mineralization that is proximal to a porphyry core.
  • Galore Resources Inc. announced that a troublesome drilling program at its San Jose claim in Zacatecas was terminated (see below) after it was forced to abandon its first hole. The company has decided to focus the exploration on the adjoining El Alamo claim, which differs significantly in mineralization style.
  • Santana Minerals Ltd. reported assay results for the first RC (reverse circulation) drill holes testing the southern extension of the Mojardina prospect at its Cuitaboca project in Sinaloa. Shallow drill intercepts include 53 m @ 47 g/t Ag; 15 m @ 100 g/t Ag; 7 m @ 53 g/t Ag, all of these less than 3 m from the surface.

ON MINING

  • Mexus Gold US. continues in the start-up period of cyanide leaching at its Santa Elena mine in Sonora, near Caborca (not to mistake with First Majestic’s Santa Elena mine, also in Sonora).
  • Arian Silver Corp. presented its financial results for 2016. During this period the company divested of the Calicanto silver project in Zacatecas, and focused in lithium properties in the Altiplano. At the end of the year the company had US$1.3 M in total assets, of which US$0.4 M was cash, with total liabilities for US$0.1 M. Twelve concessions were still held on four projects: San Celso, Los Campos, La Africana and Calicanto, and three other properties near San Celso.
  • Santacruz Silver Mining Ltd. intersected the high-grade zone of the Membrillo vein at the Membrillo prospect in San Luis Potosi. Eight muck samples from the production drift assayed 0.10-0.59 g/t Au, 8-121 g/t Ag, 0.12-0.40% Pb, 0.62-7.07% Zn over 0.40 – 0.90 m of true thickness of the vein. “Management anticipates delivering 250 tpd of material from the Membrillo Prospect to the Rosario mill for processing during the third quarter of 2017.”

ON FINANCING

  • Monarca Minerals Inc. settled an aggregate of $463 K in debt with certain of its creditors. Concept Capital Management Inc. now owns 6.5% and 13.9% of the issued and outstanding common shares (Tejamen, Durango).
  • Santacruz Silver Mining Ltd. announced a non-brokered private placement aiming to collect gross proceeds of up to $1.5M (Veta Grande , Zacatecas).
  • Alio Gold Inc. entered into an agreement with a syndicate of underwriters who accepted to purchase units of Alio Gold for gross proceeds of CDN$50M. The net proceeds of the offering will be used to advance its Ana Paula project in Guerrero.
  • Hecla Mining Co. announced a cash tender offer for its outstanding 6.875% senior notes due 2021, of which there is $605 M aggregate principal amount outstanding (San Sebastian, Durango).
  • Minera Alamos Inc. closed the previously announced private placement for gross proceeds of $5.4 M (La Fortuna, Durango).
  • Minaurum Gold Inc. received proceeds of $3.5 M from the exercise of warrants issued on 2015 (Alamos project, Sonora).
  • Wealth Minerals Ltd. closed a portion of the non-brokered private placement previously announced , for gross proceeds of $3.33 M (Coronado, Chihuahua).

ON RESOURCES AND DEVELOPMENT

  • Gold Resource Corp. informed the continued expansion of the Arista Mine’s Swichtback vein system in Oaxaca. The new drill intercepts extend the known mineralization to 625 m along strike, still open in all directions. Drill hole intercepts include 5.25 m @ 1.2 g/t Au, 40 g/t Ag, 0.6% Cu, 1.4% Pb, 7.4% Zn; 5.08 m @ 3.2 g/t Au, 261 g/t Ag, 1.3% Cu, 4.3% Pb, 11.8% Zn; 6.64 m @ 1.49 g/t Au, 220 g/t Ag, 0.7% Cu, nil Pb, 13.2% Zn.
  • Oceanus Resource Corp. released final assays for hole ET-17-144 on the Protectora vein of El Tigre property in Sonora. In a previous release the 0.85 m drill intercept (0.80 m true width, or TW) returned 37.2 g/t Au, 7,339 g/t Ag, and the new release adds assays of 2.84% Cu, 1.38% Pb, 4.06% Zn to the same interval. The nearby Palomitas tunnels have historical reports of 1.1 m @ 3.77 g/t Au, 1,714 g/t Ag (50 Oz/ton).

ON DEALS AND CORPORATE ISSUES

  • Teck Resources Ltd. entered into a binding agreement with Goldcorp Inc. to purchase its 21% minority interest in the San Nicolás project, for cash consideration of $50 M. On completion of the transaction Teck will own 100% of the San Nicolás project in Zacatecas.
  • Galore Resources Inc. decided to terminate drilling at the San Jose claim in Zacatecas, after the driller run a program plagued by mechanical issues. The decision to cease drilling resulted in the termination of the VP of Exploration.
  • Santacruz Silver Mining Ltd. signed a letter of intent to sell its Gavilanes project in Durango to an arm’s length third party.

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, at least two stages of epithermal quartz veining in fine grained sandstone near Aldama, Chihuahua. Photo by Jorge Cirett.

092

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

During the 25th week of the year (June 19th to June 25th, 2017), at least 25 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, no relevant news. ON EXPLORATION, in Sonora Riverside completed drilling at Glor; SilverCrest released high-grade results from drilling at Las Chispas project and Goldex reported surface assays on its Mingeo property. In Veracruz Almadex released drilling results from its El Cobre project, and Mexican Gold announced an incoming drilling program at Las Minas. In Chihuahua VVC Exploration has obtained surface agreements for its Samalayuca project and Radius Gold is to explore its Amalia project (see below). In Durango Prospero has started drilling at the Matorral target within its Santa Maria project.  ON MINING, Endeavour Silver released the Sustainability and Growth report for 2016. ON FINANCING, First Mining Finance graduated to the TSX; Geologix completed a financing round for $1.2 M and Silver Bull received commitments for CDN$1.3 M. ON RESOURCES AND DEVELOPMENT, Torex released high-grade results from the sub-sill orebody at its Los Guajes mine in Guerrero; Great Panther reported surface drilling assays from its San Ignacio mine in Guanajuato; Santacruz Silver encountered a new vein while drifting at the optioned Membrillo property in San Luis Potosi; Premier Gold presented exploration highlights and high-grade results from its Mercedes mine in Sonora. ON DEALS AND CORPORATE ISSUES, Goldcorp and Orla Mining agreed on the sale-purchase of the Camino Rojo project in Zacatecas; Santacruz optioned from Mexican private companies the Veta Grande and Milpillas properties in Zacatecas; Mx Gold paid the remainder of the purchase price of a gold smelter in Durango from American Metal Mining; Radius Gold optioned the Amalia property from a private owner in Chihuahua.

ON MEXICO ISSUES

  • No Relevant News.

ON EXPLORATION

  • Riverside Resources Inc. completed a nine-hole, 1,942 m, diamond core drill program at the Pitaya target area (4 km2) within the Glor project (36 km2) in Sonora, which is being explored with funding by partner Centerra Gold Inc. Results include 11.0 m @ 0.59 g/t Au and 2.0 m @ 0.46 g/t Au. The results are low compared with the trenching at the surface that showed disseminated gold values in the 0.5-1 g/t Au. Four remaining target areas are to be explored to define drilling targets.
  • Mexican Gold Corp. is to realize a 3,000 metre diamond drilling campaign at its Las Minas project in Veracruz. The drilling program targets expansion at the Cinco Senores zone as well as step-out drilling at the El Dorado / Juan Bran. “Additionally, a field exploration program, consisting of trenching, sampling and mapping will be carried out at the Santa Cruz zone to test the upward continuation of the zone above the area of previous drilling. Trenching, sampling and mapping will also be undertaken at the Pueblo Nuevo concession to further outline the quartz veins recently sampled at the site”.
  • Almadex Minerals Ltd. released results from two more holes at its El Cobre property in Veracruz, in the Norte Zone. Results include 153.5 m @ 0.68 g/t Au, 0.27% Cu (including 84 m @ 0.96 g/t Au, 0.37% Cu); 167 m @ 0.27 g/t Au, 0.12% Cu; 255.64 m @ 0.26 g/t Au, 0.17% Cu. At El Encinal Zone a new area of outcropping stockwork quartz veining was identified. El Encinal Zone is 3.5 km south-southeast of the Norte Zone and 2.5 km southeast of the Raya Tembrillo Zone stockwork veining.
  • VVC Exploration Corp. completed agreements with the land owners on its Samalayuca copper project in Chihuahua. The agreements provide access to all the area of the project, now that the company is focused on a pilot miming startup.
  • SilverCrest Metals Inc. released high-grade intercepts from the Babicanora vein at its Las Chispas project in Sonora. Highlighted estimated true width (TW) intercepts include 6.6 m @ 1.03 g/t Au, 328 g/t Ag; 2.0 m @ 3.78 g/t Au, 68 g/t Ag; 1.2 m @ 3.53 g/t Au, 303 g/t Ag; 7.6 m @ 4.08 g/t Au, 196 g/t Ag (including 2.2 m @ 10.8 g/t Au, 181 g/t Ag). To date, past and present significant intercepts are averaging 4.5 m (TW) grading 521 g/t AgEq. Since acquiring the property 14,205 m of drilling have been performed, with 37 holes in the Las Chispas, William Tell, Giovanni, Espiritu Santo and Varela veins, and 25 holes in the Babicanora area, including the Babicanora and Babicanora footwall veins. Before the end of July 2017, 3,500 meters more of drilling are planned in the phase II in the Babicanora area, and commence underground drilling at Las Chispas main vein.
  • Radius Gold Inc. has entered in an option to acquire (see below) the Amalia project in Chihuahua. Epithermal mineralization has been sampled by Radius in several veins, vein breccias and disseminated zones over 3.5 km strike length and a 600 m vertical interval on a large regional fault zone. At the Campamento zone “a 70-meter-wide zone of intense silicification, and brecciation with massive and stockwork veining has been mapped at the contact between the upper Rhyolite and lower Andesite volcanic sequence.” Rock chip sampling has returned up to 33.3 g/t Au and 288 g/t Ag, with 22 samples averaging 0.75 g/t Au and 65 g/t Ag. The silica is chalcedonic, banded and amorphous, indicating a high level within the epithermal system. The Guadalupe zone is 700 m to the SE and 200 m below, with two samples grading 20.3 g/t Au, 5,360 g/t Ag and 3.05 g/t Au, 476 g/t Ag over 1.2 and 1.3 m respectively.
  • Goldex Resources Corp. reported assay results from initial sampling at its Mingeo property in Sonora. Gold mineralization is in low angle quartz “mantos” (low angle veins) 0.1 – 3.0 m in width. The veins present drag folds, evidence of shearing and are believed to be of orogenic origin. The low angle quartz veins are observed for some 600 m on the property, with the current sampling covering 350 m in the manto1 area. Several other low angle quartz veins occur in the property. All 39 samples from the manto 1 returned assays greater than 0.4 g/t Au, and one sample on the footwall assayed 1.13 g/t Au. Best results include 1.10 m @ 6.86 g/t Au; 0.75 m @ 7.1 g/t Au; 0.62 m @ 10.05 g/t Au; 0.30 m @16.7 g/t Au; 0.7 m @ 7.36 g/t Au; 0.93 m @ 22.2 g/t Au; 0.8 m @ 12.25 g/t Au, 1.80 m @ 8.15 g/t Au; 1.05 m @ 18.9 g/t Au; 1.03 m @ 4.46 g/t Au.
  • Prospero Silver Corp. has started drilling at the Matorral project in Durango, as part of the testing of three properties under its agreement with Fortuna Silver Mines Inc.. Four holes are planned at Matorral, which has 7 km of prospective structures at Matorral, which is one of two targets on the 9,066 hectares Santa Maria del Oro claims. Sampling on the surface has returned up to 460 g/t Ag.

ON MINING

  • Endeavour Silver Corp. released the Sustainability and Growth report for 2016, which informs on a 6.6% decrease in injured frequency rate; the distribution of $140 M in economic value in Mexico (including $40 M in wages and $17 M in taxes); investing more than 68 K hours for 1,600 employees in training; investing $1.5 M in environmental initiatives, reducing energy consumption by 5% and the planting of 34,500 trees; and the reception of the Social Responsible Company award from CEMEFI and the Alliance for Social Philanthropy for all three mines.

ON FINANCING

  • First Mining Finance Corp. received approval from the Toronto Stock Exchange to graduate from the TSV Venture Exchange (TSXV) and list its common shares on the TSX. (Projects in Sonora, Durango, Oaxaca).
  • Geologix Explorations Inc. has completed its non-brokered private placement with an over-subscription of 20% for gross proceeds of $1.21 M. the net proceeds will be used for exploration and development expenditures at its Tepal gold/copper project in Michoacan.
  • Silver Bull Resources Inc. is to issue a private placement for which currently has received commitments for gross proceeds of CDN$1.33 M (Sierra Mojada, Coahuila).

ON RESOURCES AND DEVELOPMENT

  • Torex Gold Resources Inc. released high-grade assays from 25 in-fill drill holes of the Sub-Sill deposit at its Limon-Guajes mine in Guerrero. Results (unknown true width) include 2.3 m @ 11.8 g/t Au, 17 g/t Ag, 0.5% Cu; 4.2 m @ 8.2 g/t Au; 14.8 m @ 27.3 g/t Au, 19 g/t Ag, 0.9% Cu; 9.7 m @ 39.1 g/t Au (including 2.9 m @ 114.4 g/t Au); 6.2 m @ 16.1 g/t Au; 3.1 m @ 107.3 g/t Au, 53 g/t Ag, 2.1% Cu; 8.4 m @ 13.3 g/t Au, 49 g/t Ag, 3.6% Cu; 11.9 m @ 9.2 g/t Au, 77 g/t Ag, 3.1% Cu; 13.0 m @ 32.1 g/t Au, 26 g/t Ag, 0.4% Cu; 11.4 m @ 23.2 g/t Au, 0.2% Cu. “The Sub-Sill area is located between the El Limon and El Limon Sur ore deposits and under the El Limon Sill. The El Limon Sill area occurs in the Mesozoic carbonate-rich Morelos Platform, which has been intruded by Paleocene granodiorite stocks, sills and dikes. Skarn-hosted gold mineralization is developed along the contacts of the intrusive rocks and the enclosing carbonate-rich sedimentary rocks. Structurally, the El Limon Sill target area as well as El Limon and El Limon Sur ore deposits are hosted in a graben bounded by La Flaca fault to the west and the Antena fault to the east, and both are considered to be potential feeders for the mineralization. At the El Limon Sill area, several skarn zones have been identified along the contacts of the carbonate rich sediments and marbles of the Cuautla and Morelos formations and sills fingering out from the main granodiorite stock. High grade gold mineralization have been intercepted in all the different skarn horizons. Within the skarn zones individual ore shoots vary in strike length from approximately 50 meters up to 200 meters, with apparent widths varying from 2 meters to 27 meters.” The Sub-Sill in-fill diamond drilling program comprises a total of 50 holes (7455m), with the 17.5m x 17.5m drill pattern aiming to upgrade 1 M tonnes over an area of 250m x 150m, to the Indicated category, which will support the development of a mine plan. “…the Sub-Sill access ramp has entered into the high grade mineralization at its Sub-Sill underground deposit……. The first 260 tonnes of ore from the Sub-Sill were delivered to the processing plant yesterday. A random sample from each truck load of ore from this first ‘round’ into mineralized Sub-Sill skarn, returned an average grade of 98 g/t Au.”
  • Great Panther Silver Ltd. released assays from surface drilling at its San Ignacio mine in Guanajuato (part of its Guanajuato Mine Complex). The drilling targeted the intersection of the Melladito and Plateros veins, with intercepts including (true width, TW) 19.2 m @ 6.36 g/t Au, 261 g/t Ag; 2.99 m @ 2.18 g/t Au; 100 g/t Ag; 1.68 m @ 3.68 g/t Au, 160 g/t Ag; 0.78 m @ 9.95 g/t Au, 783 g/t Ag; 3.68 m @ 1.51 g/t Au, 194 g/t Ag; 0.91 m @ 5.87 g/t Au, 672 g/t Ag; 6.65 m @ 2.54 g/t Au, 18 g/t Ag; 2.9 m @ 4.04 g/t Au, 22 g/t Ag; 2.03 m @ 10.77 g/t Au, 278 g/t Ag; 3.67 m @ 5.6 g/t Au, 127 g/t Ag; 1.83 m @ 11.05 g/t Au, 160 g/t Ag. The program comprised 32 holes for 7,464 meters with a vertical and horizontal spacing of approximately 50 meters.
  • Santacruz Silver Mining Ltd. reported that drifting work at the rented Membrillo prospect in San Luis Potosi encountered a previously unknown vein now named San Rafael, that is infilled with carbonate and sulfide minerals. To date a drift on the E-W vein (NW-SE is the prevailing strike on the district) over 68 meters has shown the true width to be between 0.5 and 1.6 meters. Chip sampling on the vein returned values of trace-1.4 g/t Au, trace-770 g/t Ag, 0.03-15.9% Pb, 0.28-20.1% Zn.
  • Premier Gold Ltd. presented exploration highlights on its Mercedes mine in Sonora. “Underground drilling along strike from the Corona de Oro mine workings has discovered additional high-grade mineralization…” while “Step-out drilling has expanded the Diluvio deposit” and “Underground development (drifting) is underway to access the Marianas Zone….”. High grade intercepts of the ongoing 50,000 metre program (ten surface and underground rigs) include 1.5 m @ 10.85 g/t Au, 29 g/t Ag; 3.0 m @ 7.78 g/t Au, 33 g/t Ag; 2.4 m @ 15.52 g/t Au, 24 g/t Ag; 3.1 m @ 10.92 g/t Au, 85 g/t Ag; 30.6 m @ 5.17 g/t Au, 13 g/t Ag; 7.7 m @ 4.56 g/t Au, 43 g/t Ag; 2.1 m @ 9.74 g/t Au, 45 g/t Ag; 1.5 m @ 24.4 g/t Au, 138 g/t Ag; 1.5 m 39 g/t Au, 121 g/t Ag; 3.0 m @ 11.2 g/t Au, 99 g/t Ag; 1.5 m @ 18.25 g/t Au, 126 g/t Ag; 4.7 m @ 13.94 g/t Au, 636 g/t Ag.

ON DEALS AND CORPORATE ISSUES

  • Goldcorp Inc. entered into an agreement with Orla Mining Ltd. to sell its 100% interest in the Camino Rojo oxide project. Goldcorp “will receive: (1) 19.9% of the issued and outstanding common shares of Orla, (2) a 2% Net Smelter Return royalty on revenues from all metal production from the project, with the exception of metals produced under a joint venture with Orla, (3) an option to acquire up to a 70% interest in future sulphide projects, and (4) the right to nominate a director to Orla’s Board for as long as Goldcorp’s equity ownership position is greater than 10%.”
  • Santacruz Silver Mining Ltd. has signed an agreement with certain private Mexican companies which grant Santacruz an option to purchase a 100% interest in the Veta Grande and Milpillas properties in Zacatecas, for aggregate cash consideration of US$15.5 M. Currently Santacruz operates the properties on a 60%/40% net profits interest. The payment Schedule includes US$2.5 M on or before December 14, 2017, and US$2.5 M, US$3.0 M, US$4.0 M and US$3.5 M on yearly installments.
  • MX Gold Corp. has paid the remaining amounts due totaling US$450 K to American Metal Mining S.A. de C.V., thereby acquiring 50% of the shares in Inversiones Durango San Luis S.A. de C.V. that holds the IDS smelter project, a past producer gold smelter.
  • Radius Gold Inc. has signed a binding agreement with a private individual to option the 380 hectare Amalia project in Chihuahua. The deal involves a US$5 K payment and staged payments over 5 years totaling US$845 K and US$15 K in Radius shares.

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, epithermal quartz veining in fine grained sandstone near Aldama, Chihuahua. Photo by Jorge Cirett.

083

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

During the 24th week of the year (June 12th to June 18th, 2017), at least 19 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, the Mexican government released ground for staking for the first time in over two years. ON EXPLORATION, in Sonora Millrock and Centerra are to explore the Navidad project, while Canuc released information on the San Javier project. In Chihuahua VVC Exploration obtained a coveted drilling permit, and Harvest Gold disclosed high-grade rock sampling results from Cerro Cascaron. In Guanajuato, Vangold released results from an extensive rockchip program at its Pinguico property.  ON MINING, no relevant news . ON FINANCING, Southern Silver closed the first tranche of a placement, raising $2.5 M. ON RESOURCES AND DEVELOPMENT, Mexus Gold announced the arrival of a secondary crusher and the installation of an atomic absorption lab at its Santa Elena mine in Sonora. ON DEALS AND CORPORATE ISSUES, Millrock and Western Mining. Entered into an agreement for the purchase of the Navidad property in Sonora. Nyrstar and Telson completed the transaction on the Campo Morado mine sale in Guerrero. San Marco sold to Goldcorp the La Pinta 06 concession in Zacatecas. Discovery Metals is to buy from private owners the La Kika concession in Coahuila.

ON MEXICO ISSUES

  • The Direccin General de Regulación Minera released the first liberty announcement in more than two and a half years, to liberate ground for staking. The release includes 104 concessions that have been reduced in size, and a new title issued, 43 concessions relinquished by the concessionaires and 40 concessions cancelled by payment defaults. It is hoped the agency now can liberate ground on a steady manner (A bigger release was promised on October of 2015).

ON EXPLORATION

  • Millrock Resources Inc. and Centerra Gold Inc. are to explore the recently optioned (see below) La Navidad gold project in Sonora. The 25 K hectares project presents gold mineralization hosted by low-angle faults related to the Magdalena Core Complex, with a zone of faults traced over 2.2 Km and 300-600 m surface width. Historic drill intercepts include 13.2 m @ 2.09 g/t Au; 6.6 m @ 1.34 g/t Au; 3.3 m @ 2.03 g/t Au; 19.5 m @ 0.84 g/t Au; 14.9 m @ 0.66 g/t Au; 8.3 m @ 1.03 g/t Au.
  • Mammoth Resources Corp. released results from its surface channel sampling at its Tenoriba project in Chihuahua. At the Moreno zone 11.5 m (true width, or TW) were cut @ 0.64 g/t Au, while at Carnertios (3 km to the ENE) the samples returned 15.5 m @ 0.99 g/t Au and 7.0 m @ 1.28 g/t Au.
  • Canasil Resources Inc. informed that the last drilling campaign at its Esperanza project in Zacatecas extends the known well-mineralized envelope on the Esperanza vein over 400 m of strike length and 350 m of depth, open in all directions. Based on alteration in volcanic rocks and geophysics, Canasil has outlined a 5 km long target for further exploration, as well as the presence of four other untested veins.
  • VVC Exploration Corp. announced that the SEMARNAT (Environmental Agency) has approved the application for advanced exploration drilling at its Salamayuca copper project in Chihuahua. The program envisages core drilling in up to 53 locations at the site.
  • Canuc Resources Corp. released compiled information from work done by the Santa Rosa Silver Mining Corp. on the San Javier project in Sonora, subsequent to 2012. Mineralization appears as vein and vein-breccia zones 1 to 4.5 m in width, alteration zones associated to the margins of felsic to intermediate dykes and quartz-stockwork breccia zones than can be much wider. At Colorado, the silica clay alteration is at least 11 m wide, with 11.2 m returning 284 g/t Ag, while the Carranza zone locally attains 31 m in width, with 11 m returning 283 g/t Ag. Nine prospects are located on a 2.4 km long corridor.
  • Harvest Gold Corp. disclosed rock sampling results at Cerro Cascaron project in Chihuahua. At La Cascarita two samples returned 3 m @ 1,170 g/t Ag, 2.7 g/t Au, 1.0% Zn; 1.3 m @ 331 g/t Ag, 0.07 g/t Au, 1.6% Pb. A select sample from the Serpiente Dorada vein returned 826 g/t Au, and six other samples from the main vein field returned between 0.25 and 38.0 g/t Au.
  • Vangold Mining Corp. released exploration results from its El Pinguico project in Guanajuato. To date 452 rock samples have been collected from surface and underground locations, results include (no widths provided) 3.4 g/t Au, 450 g/t Ag; 3.8 g/t Au, 331 g/t Ag; 4.1 g/t Au, 354 g/t Ag; 12.6 g/t Au, 1,490 g/t Ag; 5.5 g/t Au, 403 g/t Ag; 4.6 g/t Au, 350 g/t Ag; 9.2 g/t Au, 63 g/t Ag; 13.9 g/t Au, 278 g/t Ag. The program confirms the El Pinguico/El Carmen vein extends to the south, connecting with the La Joya, La Joyita and El Pirul vein systems, extending mineralization 1.5 km from the midpoint of the property.

ON MINING

  • No Relevant News.

ON FINANCING

  • Southern Silver Corp. closed the first tranche of the previously reported brokered private placement, for gross proceeds of $2.5 M (Cerro Las Minitas, Durango).

ON RESOURCES AND DEVELOPMENT

  • Mexus Gold US. announced the arrival of a secondary crusher to its Santa Elena mine in Sonora (not to mistake with First Majestic’s Santa Elena mine, also in Sonora), and reported assays for samples near the Don Julio vein system, reporting results of 8.3; 0.7; 1.9; 5.8; 5.0 ; 1.1; 1.3 g/t Au. The atomic absorption machine has been installed.
  • Consolidated Zinc Ltd. announced that two more drill holes at its Plomosas mine in Chihuahua have intersected 1.75 m and 0.80 m of massive and semi-massive sulphide mineralization. Furthermore, 33 rock chip samples were collected over 150 m strike in underground workings, with massive and semi-massive sphalerite and galena mineralization in the Las Espadas area.

ON DEALS AND CORPORATE ISSUES

  • Millrock Resources Inc. entered into an option agreement to purchase La Navidad project from a private Mexican firm, Western Mining S.A. de C.V.. To complete the 100% interest purchase, 2.5 M in option payments to Western may be made over a four-year period. An initial payment of 125 K has been made. Three further option payments of 125 K each may be made at annual intervals. A final option payment of $2 M could be made to complete the purchase of the mineral rights. Through its agreement with Millrock, Centerra has the option to earn an 80% interest in La Navidad by funding all the financial obligations in the underlying agreement between Millrock and Western.
  • Nyrstar NV. Announced the completion of the sale of its Campo Morado mine in Guerrero to Telson Resources Inc. for a total cash consideration of USD 20 M, and the potential for additional future proceeds through a variable price agreement linked to production from the mine. The Campo Morado poly-metallic mine can process 2,500 tonnes per day, with the mining concessions covering over 12 thousand hectares. During 2014 the mine processed 657 k tonnes @ 1.2 g/t Au, 115 g/t Ag, 4.6% Zn, 1.2% Cu, 0.9% Pb.
  • San Marco Resources Inc. entered into an agreement to sell its La Pinta 06 concession in Zacatecas to Goldcorp Inc. for US$225 K and a 1% NSR.
  • Discovery Metals Corp. (formerly Ayubowan Capital Ltd.) entered into a mineral exploration and option agreement to acquire the La Kika concession in Coahuila from private vendors. On closing US $45 K are to be paid, and the company is to incur in not less than US $2 M in exploration expenditures, half of which is a firm commitment, and the issuance of an aggregated 1 M shares to the vendors. A 30% royalty on the operating profit of direct shipping operations (for the first 450 K tonnes), or a 2%  NSR otherwise.

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, setting up a geophysical survey in northeastern Chihuahua, circa year 2000. Photo by Jorge Cirett.

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

During the 23rd week of the year (May 5th to June 11th, 2017), at least 25 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, the Mexican government owes more than US$360 M on tax returns to Canadian mining companies. ON EXPLORATION, in Sonora Riverside released assays from recent sampling at Cecilia; Colibri received drill results from its partner at the Pitaya property; and Millrock is to explore the Picacho project. In Chihuahua Sierra Metals released high-grade drilling results from a new structure at its Cusi property; Golden Goliath is to start a field program at San Timoteo and Harvest Gold is to begin a field program at the recently optioned Cerro Cascaron property. In Sinaloa Santana commenced an RC drill program at its Cuitaboca project. Defiance released results from the first hole of the season at the San Acacio property. In Jalisco Plata Latina announced an incoming drill program at Vaquerias.  ON MINING, Pan American Silver continues the expansion at La Colorada and Dolores mines in Zacatecas and Chihuahua. ON FINANCING, New Gold announced the redemption of $200 M in senior notes, and Agnico Eagle made a $9.76 M strategic investment in Candelaria. ON RESOURCES AND DEVELOPMENT, US Antimony started pilot production at Los Juarez pit in Queretaro, and Oceanus disclosed high grade intercepts from a step-out hole in El Tigre, Sonora. ON DEALS AND CORPORATE ISSUES, Endeavour Silver bought the Calicanto and Veta Grande properties from Arian Silver and Impact Silver respectively. Candelaria issued 4.6 M shares to Minera Apolo as partial payment for 65 concessions in Zacatecas, Durango and San Luis Potosi. Mexican Gold made a definitive agreement to acquire three important concessions within its Las Minas project in Veracruz. Millrock optioned El Picacho project in Sonora, and the property has now become a “designated project” under its alliance with Centerra.

ON MEXICO ISSUES

  • The Mexican government plays deaf on tax returns to Canadian companies. The SAT (IRS equivalent) holds more than US$360 M on tax returns to six Canadian mining companies, including US$230 M to Goldcorp, which declined to comment. Other affected companies include Torex Gold (US$66.5 M), Alamos Gold (US$26 M), Agnico Eagle (US$18 M) Endeavour Silver (US$15.6 M) and McEwen Mining (US$6.2 M). The issue was raised by the mining companies with Canada’s Minister of Natural Resources, Jim Carr, who contacted the Secretaria de Economia regarding the VAT tax returns. The matter is to be “investigated”.

ON EXPLORATION

  • Sierra Metals Inc. completed the first phase of systematic drill campaign on the Santa Rosa de Lima structure at its Cusi mine in Chihuahua. The drilling encompassed 36 holes in an approximate grid covering an area 1,000 m long by 400 m depth, with average true width and grade of 4.1 m @ 371 g/t AgEq. Intercepts include 12.0 m @ 757 g/t Ag; 1.8 m @ 709 g/t Ag; 2.0 m @ 1,152 g/t Ag; 3.5 m @ 414 g/t Ag; 3.2 m @ 1,034 g/t Ag; 4.3 m @ 690 g/t Ag; 11.0 m @ 575 g/t Ag. A 24 hole, 13,200 m definition drilling program is to be completed during June. The 12 km long Santa Rosa de Lima structure presents no hydrothermal alteration on the surface, and presents a NW-SE orientation that contrasts with the NE-SW orientation of the structures currently being mined in the district.
  • Santana Minerals Ltd. has commenced a reverse circulation (RC) drilling program at its Cuitaboca property in Sinaloa. The 16 hole, ~2,500 m RC program is to test the vertical and horizontal continuity of mineralisation across the Las Animas and Evangelina zones of the Mojardino prospect.
  • Riverside Resources Inc. released assay results from the first phase exploration program at its Cecilia project in Sonora. The company is targeting epithermal Au-Ag mineralization hosted by a felsic flow-dome complex. The sampling to date has concentrated at the North Breccia and Central zones, where 36% of the samples assayed more than 0.5 g/t Au. Rock sample results are up to 113.7 g/t Au, 288 g/t Ag; 58 g/t Au, 207 g/t Ag; 8.42 g/t Au, 88 g/t Ag. More than 20% of the samples assayed more than 200 g/t Ag, with the highest one returning 310 g/t Ag.
  • Golden Goliath Resources Ltd. is about to start the 2017 field program at its San Timoteo project in Chihuahua, which is deemed to expand “the Terraspec coverage and acquire and incorporate geological, geochemical and structural data from other workings to select specific drill targets in areas further away from the San Martin mine targets”.
  • Colibri Resource Corp. announced drill results received from its JV partner Agnico Eagle Mines Ltd. from its Pitaya property in Sonora, on which Agnico currently holds a 66% interest. Drill results cover 1,543 m in six holes, with drilling on going and further 4,700 m of drilling to be completed. Results include 5.4 m @ 0.5% Cu; 3.6 m @ 0.81 g/t Au; 1.1 m @ 2.2 g/t Au; 3.3 m @ 0.48 g/t Au; 6.4 m @ 0.32 g/t Au; 2.2 m @ 21 g/t Au, 57 g/t Ag; 1.0 m @ 0.48 g/t Au, 34 g/t Ag, 3.1% Cu; 7.0 m @ 0.5 g/t Au; 1 m @ 2.4 g/t Au; 7 m @ 0.36 g/t Au; 4 m @ 0.94 g/t Au.
  • Defiance Silver Corp. released results from the first hole of the ongoing drill program at the San Acacio project in Zacatecas. The drill hole targeted the Esperanza zone and intersected high grade silver, with 27 .03 m of hydrothermal breccia and veins assaying 203 g/t AgEq. The 27.03 m intercept @ 148 g/t Ag, 0.29 g/t Au, 0.1% Pb, 0.7% Zn includes 7.58 m @ 213 g/t Ag, 0.3% Zn; 5.00 m @ 231 g/t Ag, 0.51 g/t Au, 0.4% Pb, 1.7% Zn and 6.05 m @ 122 g/t Ag, 0.74 g/t Au, 1% Zn.
  • Millrock Resources Inc. is to explore the El Picacho project as a designated project on its strategic alliance with Centerra Gold Inc. in Sonora. The project is an orogenic gold target, where Jurassic rocks are juxtaposed in a thrust fault relationship with much older Precambrian age rocks, being located 18 km W-SW from Alio Gold’s San Francisco mine.
  • Harvest Gold Corp. is to start a first phase two-month field program on the recently optioned Cerro Cascaron project with a budget of $225 K, including the opening of two historic adits, detailed mapping, sampling and prospecting of the main vein field, La Cascarita, and the eastern extension across a river valley.
  • Plata Latina Minerals Corp. announced that Fresnillo PLC has initiated drilling at the Naranjillo property in Guanajuato, which it optioned from Plata Latina. The focus of the company is now the Vaquerias project, where previous drilling intersected up to 727 g/t Ag, 0.24 g/t Au over 0.55 m. Drilling is to re-initiate at Vaquerias, Jalisco, in late summer of 2017.

ON MINING

  • Pan American Silver Corp. is continuing with the expansion at its La Colorada and Dolores mines. At La Colorada (Zacatecas) the goal is to rise mine production to 1,800 tonnes per day (tpd) and 7.7 M Oz Ag and significant Pb and Zn. At Dolores (Chihuahua), the goal is to load 17.6 – 18 K tpd on the heap leach pads to obtain 4 – 4.5 M Oz Ag and 109.1 – 115 K Oz Au.

ON FINANCING

  • New Gold Inc. completed the previously announced redemption of its outstanding $300 M 7.0% senior notes due 2010. “The redemption was funded from the net proceeds of its recent issue of $300 million aggregate principal amount of 6.375% Senior Notes due in 2025 and cash on hand.” (San Pedro, San Luis Potosi).
  • Candelaria Mining Corp. announced that Agnico Eagle Mines Ltd. is making a strategic investment of $9.76 M in Candelaria. “Upon completion of the Private Placement, Agnico will own approximately 9.95% of the common shares of Candelaria.”

ON RESOURCES AND DEVELOPMENT

  • United States Antimony Corp. started pilot production from the Los Juarez pit at it Los Juarez property in Queretaro. Approximately 400 metric tons were trucked to the Puerto Blanco mill in Guanajuato. “The permit for a cyanide leach circuit for the Puerto Blanco mill tailings has been reviewed by SEMARNAT (Mexican equivalent of EPA), and USAC is changing the location and design of the tailings pond to comply with their request.”
  • Oceanus Resources Corp. reported a high grade drill intercept from a step-out hole at its El Tigre property in Sonora. The hole in the Protectora vein intersected 3.15 m @ 10.1 g/t Au, 1,991 g/t Ag, including 0.85 m @ 37.2 g/t Au, 7,339 g/t Ag, and a deeper intercept of 1.5 m @ 1,107 g/t Ag. “The mineralized zone consists of several vuggy quartz veins and veinlets carrying galena, sphalerite, chalcopyrite, stromeyerite and pyrite.” This hole is collared some 800 m North of the El Tigre mine, from where the unmined Protectora vein extends for 1,500 m to the North.

ON DEALS AND CORPORATE ISSUES

  • Endeavour Silver Corp. has acquired 100% interest in the Calicanto and Veta Grande properties in Zacatecas. Calicanto was bought from Arian Silver Corp. for US$400 K, is subject to a 3% royalty and covers five >1 km long veins, 1-3 m thick and grades of 100-300 g/t Ag, 1-3 g/t Au, 1-3% Pb+Zn. The Veta Grande property (10 concessions, 152 hectares) was bought from Impact Silver Corp. for US$500 K in shares, covering six Ag-Au-Pb-Zn veins and 14 hectares of surface land on which an idle 200 tpd processing plant is located.
  • Candelaria Mining Corp. announced that it issued 4.6 M shares to Minera Apolo S.A. de C.V., meeting the obligations required to complete the acquisition of 60% of the shares of Minera Apolo. Candelaria holds a right of first refusal to purchase the remaining 40% of the shares of Minera Apolo, which are currently held by four individuals resident in Mexico. Minera Apolo holds 65 claims over 20,475 has in the states of Zacatecas, Durango and San Luis Potosi, including properties in the Pinos district, Lucifer, Km66, Guadalcazar, Cascabel, El Gato and the Noria tailings.
  • Mexican Gold Corp. entered into a definitive purchase and sale agreement to acquire 100% interest in the Pepe, Pepe Tres and San Jose concessions at its Las Minas project. The concessions form the core of the Las Minas property, encompassing six strongly mineralized zones. The agreement states a $433 K payment (plus VAT) upon execution, six monthly equal payments of $22 K (plus VAT) commencing on December 2017 and a final payment of $867 K (plus VAT) on December 2018. The vendors retain a 1.5% NSR, of which one third can be bought by US$500 K, with Mexican Gold having the right of first refusal on the rest.
  • Millrock Resources Inc. entered an option agreement to purchase the El Picacho project in Sonora. The project was identified to Centerra Gold Inc. by Millrock, and it is now to become a “designated project” under the strategic alliance between the companies. An initial payment of US$21,375 has been made on the US$1.723 M option payments due over a four year period. “Seven equal option payments of US$21,375 will be due at six-month intervals. A final option payment of US$1,552,000 would be made to complete the purchase of the mineral rights.”
  • Evrim Resources Corp. optioned its Cerro Cascaron project in Chihuahua to Harvest Gold Corp., which will have the right to earn up to 80% interest. Under the agreement Harvest can earn 70% by investing $6 M in the property, making a 900 K payment and issuing 2 M shares to Evrim over a four year period. Harvest can earn an additional 10% by paying $200 K (or 200 K shares, Evrim’s election), fund a 43-101 compliant feasibility study (FS) and make further $2 M expenditures.

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

Winding dirt road in the Sierra Madre, at Cañada del Güerachi, Chihuahua. Photo by Jorge Cirett.

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