Weekly Highlights

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

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By Jorge Cirett

During the 11th week of the year (March 13th to March 19th, 2023), 12 companies working in Mexico released news on their properties. Four companies informed on Q4 and year 2022 financial and operational results. One company opened a financing exercise and one more closed a previously announced private placement. Three companies released drilling results on their advanced properties. A company received a permanent injunction order against an act by SEMARNAT that would sharply reduce the term validity of a needed permit. One more company announced the acquisition of a large adjoining claim block to its flagship property. ON MEXICO ISSUES, no relevant news. ON EXPLORATION, no relevant news. ON MINING, SilverCrest Metals, Americas Gold and Silver, Fortuna Silver and Orla Mining released Q4 2022 production or/and financial reports. ON FINANCING, Silver Viper is to undertake a non-brokered private placement for up to $3 M. Heliostar Metals closed its non-brokered private placement, raising C$20 M. ON RESOURCES AND DEVELOPMENT, Zacatecas Silver released plans on several exploration targets at its Esperanza project in Morelos. Vizsla Silver announced the filing of a technical report with updated mineral resources for its Panuco project in Sinaloa. Defiance Silver released drilling results from testing of the Veta Madre vein system at the San Acacio project in Zacatecas. ON DEALS AND CORPORATE ISSUES, Fortuna Silver received a court ruling that protects its operation while a definitive ruling is obtained regarding the term of a permit granted by SEMARNAT. Colibri Resource acquired the 4,260 ha “Plomo Gold” property adjacent to its flagship Evelyn project in Sonora. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • No Relevant News.

ON EXPLORATION

  • No Relevant News.

ON MINING

  • SilverCrest Metals Inc. reported financial results for year 2022. Las Chispas mine construction in Sonora was completed in May 2022 for US$133 M, with revenue from mining allowing for the payment of US$40 M of debt. Commercial production was declared on November 1, 2022. During Q4, 2.3 km of underground development were completed, 65 K tonnes were mined, and 104 K tonnes milled @ 3.67 gpt Au, 382 gpt Ag, recovering 96.9%Au, 93.3% Ag, to produce 11.9 K Oz Au, 1.2 M Oz Ag (2.2 M Oz AgEq). For the year, 201 K tonnes were mined, 188 K tonnes were milled @3.05 gpt Au, 312 gpt Ag, recovering 96.05% Au, 92.5% Ag to produce 17.8 K Oz Au, 1.7 M Oz Ag (3.3 M Oz AgEq). By the end of February 2023, the company’s cash balance was US$71.2 M, which permitted the prepayment of US$15 M and the reduction of the debt outstanding to US$35 M.
  • Americas Gold and Silver Corp. reported financial and operational results from its activities in Mexico and USA. The company obtained revenue of $85.0 M on the production of 5.3 M Oz AgEq, with cash costs of $0.77 per Oz Ag and all-in sustaining costs of $9.64 per Oz Ag. At Cosalá, in Sinaloa, 636 K Oz Ag, 39.3 M Lb Zn, 15.3 M Lb Pb were produced. For 2023, production is projected to be between 1.2 – 1.4 M Oz Ag, 33 – 37 M Lb Zn, 11 – 13 M Lb Pb.
  • Fortuna Silver Mines Inc. reported financial and operating results for Q4 and full year 2022. At San Jose, in Oaxaca, 259.5 K tonnes were milled at a rate of 2,883 tonnes per day, grading 194 gpt Ag, 1.13 gpt Au, recovering 91% Ag, 90% Au, to produce 1.47 M Oz Ag, 8,499 Oz Au, at cash cost $11.16 per Oz AgEq and All-in sustaining cost of $15.53 per Oz AgEq.
  • Orla Mining Ltd. announced results for Q4 and full year 2022. During the year Orla commissioned the Camino rojo Oxide deposit in Zacatecas, producing 32,017 Oz Au in Q4 for a total of 109,596 Oz Au on the year, at an all-in sustaining cost of $634 per Oz Au on Q4 and $611 per Oz Au on the year. By the end of 2022 the company had a cash balance of $96.3 M and net debt of $49.5 M. “A 34,000-metre, 57-hole follow-up drill program will continue to infill the Camino Rojo Sulphides in 2023 (20% of the holes will extend to test the deep potential of the deposit). In addition, 6,500 metres will be drilled on the extensions of the Camino Rojo oxide deposit to update and expand resources and reserves”.

ON FINANCING

  • Silver Viper Minerals Corp. is to undertake a non-brokered private placement financing to raise gross proceeds of up to US$3 M (La Virginia, Sonora).
  • Heliostar Metals Ltd. closed its previously announced non-brokered private placement offering, for gross proceeds of C$20.4 M (Ana Paula, Guerrero).

ON RESOURCES AND DEVELOPMENT

  • Zacatecas Silver Corp. announced exploration plans on several near surface targets and a key deep intrusion target near the Esperanza project in Morelos. The previous operators drilled several holes with high grade intercepts on the western edge beneath the planned open pit. Near surface targets include the Northern contact, Northeastern contact and Colotepec. Planned exploration includes soil geochemistry on a 50 by 100 m grid, land magnetics, and an induced polarization survey. Depending on results obtained, the use of deep-sensing audio-frequency magnetotellurics (AMD) or large-scale controlled audio magnotellurics (CSAMT) may be used.
  • Vizsla Silver Corp. filed a NI-43-10 compliant technical report containing an updated mineral resource estimate on the Panuco project, in Sinaloa.
  • Defiance Silver Corp. provided results for seven drill holes testing the Veta Grande vein system of the San Acacio project in Zacatecas. “These holes were designed to improve the main Veta Grande structural model and to test splays to the Veta Grande system, including the footwall San Herculano structure”. Highlighted core-length intervals comprise 9.57 m @ 157 gpt Ag, 0.12 gpt Au; 8.59 m @ 60 gpt Ag, 0.07 gpt Au, 6.98 m @ 81 gpt Ag, 0.17 gpt Au; 1.15 m @ 45 gpt Ag, 0.34 gpt Au, 1.3% Pb, 0.6% Zn; 2.73 m @ 237 gpt Ag, 0.04 gpt Au; 2.23 m @ 95 gpt Ag, 0.14 gpt Au; 11.22 m @ 24 gpt Ag, 0.34 gpt Au, 0.7% Pb, 1.7% Zn (including 3.40 m @ 50 gpt Ag, 0.71 gpt Au, 1.7% Pb, 3.85% Zn).

ON DEALS AND CORPORATE ISSUES             

  • Fortuna Silver Mines Inc. reported that the Mexican Federal Administrative Court has granted a permanent injunction to Fortuna Silver that allows the San Jose mine in Oaxaca to continue to operate under the terms of the 12-year environmental impact authorization (EIA). Fortuna had to initiate legal proceedings against SEMARNAT after it issued a re-assessment on the term of the EIA. “The grant of the permanent injunction in favor of Minera Cuzcatlan allows the San Jose Mine to continue to operate under the terms of the 12-year EIA until the Court has ruled on the revocation of the EIA”.
  • Colibri Resource Corp. announced the acquisition of the “Plomo Gold” property in the Caborca belt in Sonora. The 4,260 ha property takes Colibri holdings in the area to 4,766 ha. The property has an historical database containing 1,853 rock samples, 1,570 m of drilling in 10 holes, geological mapping and 14.1 Km of induced polarization survey. High priority targets include Banco de Oro, San Perfecto (with an 11.65 m drill intercept averaging 0.66 gpt Au), Pavorreal and Bonancita. “The Plomo property is underlain by a variety of rock types that include Paleoproterozoic metamorphic rocks, a sequence of Jurassic volcanic rocks ranging in composition from andesite to rhyolite, and intrusive rocks that include diorite, granodiorite, and monzonite”.

ON SOCIAL RESPONSIBILITY

  • No Relevant News.

On the image below: Blue sky and copper staining on a project in the Sonoran Desert. Picture by Jorge Cirett.

Mexico’s Best Drilling Intercepts, Third Week of March 2023

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Only Defiance Silver reported drilling results this week related to properties in Mexico. The company has a large (4,300 ha) semicontinuos land position in the Zacatecas district, in Zacatecas. Within this land package Defiance has three project areas: San Acacio, focused on the Veta Grande vein system, with a 17 M Oz Ag inferred resource. Lucita, with the Palenque structure and Lagartos, within the Mala Noche belt. The holes in this release “were designed to improve the main Veta Grande structural model and test splays to the Veta Grande system, including the footwall San Herculano structure”.

The Mining and Exploration News in Mexico: Highlights on the Second Week of March, 2023.

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Quartz-Sericite-Pyrite (Phyllic Alteration).

By Miguel A Heredia

During the 10th week of the year (March 6th to March 12nd, 2023), at least 9 press releases were announced by companies working in Mexico, and 4 news published by the media with five commenting on Mexican Issues, three informing on exploration results, two reporting resources and developments, two disclosing deals and corporate issues, and one discussing social issues. ON MEXICO ISSUES, Peñoles and Fresnillo plc recognized the role of women in mining, commemorating his legacy from the beginning of his participation in this sector. In Mexico, women in mining have access to salaries up to 30% higher than the national average. According to figures from the Mexican Social Security Institute (IMSS), more than 66,000 women work in the mining-metallurgical industry, which is equivalent to 16.3% of the total workforce. Proposals to modify the Mining Law lack support, say experts, since the industry complies with at least 4,000 legal obligations, before starting operations of a mining unit. GoGold and Torex reported the best drilling intercepts in Mexico on the second week of March, 2023.  ON EXPLORATION, In Sonora, Aztec Minerals reported that it has commenced the 2023 exploration program at its Cervantes project. In Sinaloa, Prismo announced that it has received authorization for drilling its Palos Verdes project.  In Oaxaca, Vortex Metals provided an update on the environmental works it has conducted at its flagship Riqueza Marina project. ON MINING, no relevant news. ON FINANCING, no relevant news. ON RESOURCES AND DEVELOPMENT, GoGold reported additional drilling results from Los Ricos South, within the Eagle and Main Deposits in Jalisco.  Torex released results from the drilling program conducted at its Media Luna project in Guerrero. ON DEALS AND CORPORATE ISSUES, Guanajuato Silver announced that a new shareholder has acquired a significant equity position in the company (El Cubo, Valenciana, and San Ignacio Mines in Guanajuato). Bear Creek provided an update on the USD $25M payment to Equinox Gold for the Mercedes mine in Sonora. ON SOCIAL RESPONSIBILITY, Endeavour published its inaugural climate strategic report (Guanacevi mine, Durango).

ON MEXICO ISSUE

  • Servicios Industriales Peñoles S.A.B. de C.V., and Fresnillo plc recognized the role of women in mining, commemorating his legacy from the beginning of his participation in this sector. Both companies have maintained a strong gender agenda that offers equal opportunities to women and men, equal salaries that depend on the responsibilities of each employee, programs to prevent harassment and to reinforce female leadership.
  • In Mexico, women in mining have access to salaries up to 30% higher than the national average, with remunerations that exceed MXP $11K a month, above the MXP $5K and up to MXP $7K received by workers in the agricultural and construction sectors, textile employees, drivers and merchants, according to sector estimates. The mining industry has made progress on issues of diversity and inclusion, since in the last 13 years the participation of women has increased, going from 33,260 at the end of 2008 to 66,037 by 2022, according to data from Mining Chamber of Mexico (CAMIMEX).
  • According to figures from the Mexican Social Security Institute (IMSS), more than 66,000 women work in the mining-metallurgical industry, which is equivalent to 16.3% of the total workforce. The number of women who are entering careers in mining engineering, metallurgy and geology is increasing and therefore their presence in the productive field and in the management of the operation of mining units is increasing. Of the total number of women who participate in the industry, 10% hold directive positions and 14% hold management positions.
  • Proposals to modify the Mining Law lack support, say experts, since the industry complies with at least 4,000 legal obligations, before starting operations of a mining unit. The reform initiatives to the Mining Law that have been presented in the Congress of the Union lack support in the real circumstances of this industry or refer to issues that should be the subject of other legal regulations, as uncertainty for this activity. The experts explained that issues such as creating or increasing taxes and/or rights must be ruled out in the legislative drafts, since mining entrepreneurs pay, like any other taxpayer, the Income Tax, the Special Tax on Production and Services, in addition to they also pay mining rights and some local contributions, such as payroll and property taxes, as well as some of the so-called ecological taxes. They added that it is estimated that the tax burden of mining in Mexico is high, compared to other countries with mining activity. Mining is an industry misunderstood and unknown by many, even by those who promote changes to its legislation, for which they trusted that the voice of those who know and participate directly in the industry will be heard.
  • GoGold Resources Inc., and Torex Gold Resources Inc., reported the best drilling intercepts in Mexico on the second week of March, 2023. Details are shown in the table below:

ON EXPLORATION

  • Aztec Minerals Corp., reported that it has commenced the 2023 exploration program at its Cervantes project in Sonora. The plan of the company is to conduct a surface exploration program which will consist of road cut, reconnaissance outcrop, and soil sampling, Terraspec SWIR data collection, and geological mapping. It will comprise collecting over 1,300 geochemical samples, including 950 roads cut, 120 soils, and 250 outcrop chips.
  • Prismo Metals Inc., announced that it has received authorization for drilling its Palos Verdes project, located in the historic Panuco-Copala mining district in Sinaloa. The company plan is to complete a 2,500m drilling program to test the strike length of the Palos Verdes Vein that was not previously accessible until now.
  • Vortex Metals Inc., provided an update on the environmental works it has conducted at its flagship Riqueza Marina project in Oaxaca. Vortex has completed the environmental work activities and has interpreted and organized the information according to predetermined formats required for the Secretariat of Environment and Natural Resources (SEMARNAT). Additionally, the company is working closely with the community looking that a beneficial relationship is established and the general assembly confirms and seals the agreements.

ON MINING

  • No relevant news.

ON FINANCING

  • No relevant news.

ON RESOURCES AND DEVELOPMENT

  • GoGold Resources Inc., reported additional drilling results from Los Ricos South, within the Eagle and Main Deposits in Jalisco. Drilling highlights include hole LRGAG-22-117 on Eagle Deposit with 1.09 g/t Au and 133 g/t Ag (2.87 g/t AuEq or 215 g/t AgEq) over25m, including 1.96 g/t Au and 307 g/t Ag (6.06 g/t AuEq or 454 g/t AgEq) over 9m, including 8.08 g/t Au and 1,460 g/t Ag (27.75 g/t AuEq or 2,066 g/t AgEq) over 1m; hole LR-GAG-22-125 on Eagle Deposit with 2.14 g/t Au and 128 g/t Ag (3.84 g/t AuEq or 288 g/t AgEq) over 42.3m, including 9.66 g/t Au and 486 g/t Ag (16.13 g/t AuEq or 1,210 g/t AgEq) over 7.3m; including 15.35 g/t Au and 866 g/t Ag (26.89 g/t AuEq or 2,017 g/t AgEq) over 2.8m; and hole LRGG-22-232 on Main Deposit with 2.60 g/t Au and 61 g/t Ag (3.41 g/t AuEq or 256 g/t AgEq) over 10.2m, including 24.60 g/t Au and 238 g/t Ag (27.77 g/t AuEq or 2,083 g/t AgEq) over 0.8m.  The Eagle Deposit adjoins the Main Deposit and represents a northern extension of the previously defined Mineral Resource Estimate in the Los Ricos South PEA.
  • Torex Gold Resources Inc., released results from the drilling program conducted at its Media Luna project in Guerrero. This program was focused on upgrading Indicated Resources to the Measured category and targeting spatial gaps in prior drilling to expand Inferred Mineral Resources. Drilling highlights include hole ML22-823D with 40.48 g/t Au, 87 g/t Ag, and 2.76% Cu (46.05 g/t AuEq) over 28.40m; hole ML22-804D with 10.79 g/t Au, 101 g/t Ag, and 3.09% Cu (17.08 g/t AuEq) over 58.08m; hole ML22-768D with 13.98 g/t Au, 112 g/t Ag, and 3.69% Cu (21.39 g/t AuEq) over 26.39m; hole ML22-762A with 13.27 g/t Au, 17 g/t Ag, and 0.46% Cu (14.23 g/t AuEQ9 over 22.43m; hole ML22-835D with 6.72 g/t Au, 29 g/t Ag, and 0.92% Cu (8.58 g/t AuEq) over 34.75m; hole ML22-767D with 4.57 g/t Au, 80 g/t Ag, and 2.50% Cu (9.63 g/t AuEq) over 26.15m; hole ML22-913 with 4.75 g/t Au, 29 g/t Ag, and 1.76% Cu (8 g/t AuEq) over 25.43 g/t AuEq over 25.43m; hole ML22-910 with 1.06 g/t Au, 54 g/t Ag, and 1.25% Cu (3.78 g/t AuEq) over 48.05m; hole ML22-877A with 1.53 g/t Au, 25 g/t Ag, and 0.73% Cu (3.03 g/t AuEq) over 26.77m; and hole ML22-915 with 1.94 g/t Au, 6 g/t Ag, and 0.34% Cu (2.56 g/t AuEq) over 18.05m.

ON DEALS AND CORPORATE ISSUES

  • Guanajuato Silver Company Ltd., announced that a leading US based institutional investor has acquired a significant equity position in the company through the purchase of 24M common shares representing the majority of the equity position previously held by Great Panther Mining Ltd. (El Cubo, Valenciana, and San Ignacio Mines in Guanajuato).
  • Bear Creek Mining Corporation provided an update on the USD $25M payment to Equinox Gold Corp., for the Mercedes mine in Sonora. Bear Creek has revised the terms of the heads of agreement with Equinox to amortize over a two-year period payment of the final USD $25M purchase price installment. “The Revised Terms provide for converting the Deferred Payment into a secured interest bearing promissory note (the “Note”). The Note bears a nominal rate of interest equal to 12.5% per annum plus the greater of (i) 90-day average Secured Overnight Financing Rate and (ii) 2.50% per annum, and matures after a term of two years on October 21, 2024 (the “Maturity Date”). Commencing March 3, 2023, the Note will amortize at a fixed rate of USD $700K per month during the first year until March 3, 2024 and thereafter at an amount per month equal to the greater of (i) USD $700K and (ii) 50% of the free cash flow generated from Mercedes”. In addition to the Note, the Company will issue to Equinox Gold 2,750,000 common shares of the Company.

ON SOCIAL RESPONSIBILITY

  • Endeavour Silver Corp., published its inaugural climate strategic report in which provided specific information in four areas: governance, strategy, risk management, and metrics and targets (Guanacevi mine, Durango).

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

On the picture above, quartz-sericite-pyrite (phyllic alteration) in a porphyry copper project in Sonora, Mexico.  Photo by Miguel A Heredia.

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

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By Jorge Cirett

During the 9th week of the year (February 27th to March 5th, 2023), 11 companies working in Mexico released news on their properties. One company provided an update on 2022 work on its properties, and plans for 2023, while one more company informed on underground rehabilitation progress at an historic mine within its exploration play. Three companies informed on Q4 2022 production and financial situation. No financing rounds this week announced by companies working in the country. Four companies released drilling results on their advanced properties, and one more from its currently producing operation. A company announced an option on the acquisition of a valuable inner claim. ON MEXICO ISSUES, no relevant news. ON EXPLORATION, in Sonora, Minaurum Gold informed on rehabilitation work of underground workings at Alamos. In Jalisco, Almadex Minerals provided an update on Pedro. In Puebla, Almadex Minerals updated on 2022 work at Victoria, and plans for 2023. ON MINING, Argonaut Gold, Aura Minerals and Endeavour Silver released Q4 2022 production or/and financial production reports. ON FINANCING, no relevant news. ON RESOURCES AND DEVELOPMENT, Silver Tiger Metals released drilling results from the sulfide zone at its El Tigre project in Sonora. Prime Mining announced results from drilling at targets outside of the mineral resource limits at Los Reyes in Sinaloa. Gold Resource released results from drilling at the Don David mine in Oaxaca. GR Silver Mining informed on results from drilling at the Plomosas mine area of its Plomosas project in Sinaloa. Vizsla Silver reported drill results from infill drilling from the Copala structure at its Panuco project in Sinaloa. ON DEALS AND CORPORATE ISSUES, Riverside Resources signed an option agreement to acquire an important inner claim within its La Union project in Sonora. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • No Relevant News.

ON EXPLORATION

  • Almadex Minerals Ltd. provided an update on its exploration plays and plans for 2023, including information on its Mexican properties. At the San Pedro project in Jalisco, a high-sulfidation acid sulphate lithocap alteration and sulfide bearing breccia zones with elevated base and precious metals were tested with four holes. The bests intervals comprise 4.51 m @ 0.03 gpt Au, 657 gpt Ag; 1.3 m @ 846 gpt Ag; 2.9 m @ 7.45 gpt Au. Mapping and sampling of the Victoria project in Puebla on epithermal silver rich veins was conducted for a planned 2023 drill program. In March the company will conduct a surface mapping program on the Yago project, located in Nayarit.
  • Minaurum Gold Inc. provided an update in underground rehabilitation work at the Promontorio mine on its Alamos project in Sonora. “Our underground rehabilitation has now accessed 600 metres of an estimated 1.2 kilometres of workings …. The workings continue to be in good and stable condition. Backfill material continues to be removed and stockpiled outside the mine entrance for future processing”. Assays from 37 backfill material returned seven samples over 1 gpt Au (5.74 gpt peak), ten samples over 150 gpt Ag (308 gpt Ag peak), eleven samples above 0.5% Cu (1.57% peak), 20 samples over 1.0% Pb (3.91% peak) and 26 samples over 1.0% Zn (8.19% peak).

ON MINING

  • Argonaut Gold Inc. released operating and financing results for Q4 2022, without disclosing figures on its Mexican operations. At the end of the period the company held $73.3 M in cash and cash equivalents. Its Mexican operations include the San Agustin mine in Durango and the La Colorada mine in Sonora, and the Cerro del Gallo project in Guanajuato.
  • Aura Minerals Inc. filed its audited financial statements and management discussion for the year 2022, without disclosing the figures by project. For 2023 the company expects to produce between 101 K to 116 K Oz AuEq at cash cost $685 to $788 per Oz AuEq and an AISC of $898 to 1,033 per Oz AuEq at the Aranzazu mine in Zacatecas. “Exploration is expected to focus on the geological potential of new mineralized zones, such as Cabrestante, El Cobre and Limestone Bridge with 20,000 m of drilling planned to 2023. All targets are near mine, some of which have been drilled in the past and indicated skarn mineralization but requiring follow up drilling”.
  • Endeavour Silver Corp. announced financial and operating results for year 2022. The company that operates the Guanceví mine in Durango and the Bolañitos mine in Guanajuato produced 5.96 M Oz Ag, 37,548 Oz Au (or 9.0 M Oz AgEq) at cash cost $10.65 and an AISC of $19.97 per Oz Ag. By the end of the period the company had $83.4 M in cash and $93.6 M in working capital. Development activities continue at Terronera, in Jalisco, and an initial mineral resource estimate was published for the Pitarrila project in Durango. 

ON FINANCING

  • No Relevant News.

ON RESOURCES AND DEVELOPMENT

  • Silver Tiger Metals Inc. released drilling results from its El Tigre project in Sonora. The results are from the recently discovered Sulfide zone at depth. Highlighted core length intervals comprise 57.2 m @ 0.20 gpt Au, 231 gpt Ag, 0.41% Cu, 0.7% Pb, 1.0% Zn (including 2.8 m @ 0.21 gpt Au, 1,986 gpt Ag, 4.0% Cu, 3.9% Pb, 5.6% Zn); 20.0 m @ 0.35 gpt Au, 369 gpt Ag, 0.85% Cu, 4.1% Pb, 8.1% Zn; 1.0 m @ 0.01 gpt Au, 453 gpt Ag, 0.56% Cu; 22.1 m @ 0.08 gpt Au, 222 gpt Ag, 0.21% Cu, 0.3% Pb, 0.3% Zn (including 1.2 m @ 0.24 gpt Au, 2,614 gpt Ag, 2.67% Cu, 1.8% Pb, 1.4% Zn); 4.7 m @ 0.11 gpt Au, 420 gpt Ag, 0.45% Cu, 0.3% Pb, 0.4% Zn; 37.8 m @ 0.19 gpt Au, 172 gpt Ag, 0.39% Cu, 1.8% Pb, 3.7% Zn. The sulfide zone has been traced now for 200 m, at depth in the Tertiary Nodular Fm just above the contact with a Precambrian granite.
  • Prime Mining Corp. announced assay results on the Fresnillo, Orito, Mariposa, Las Primas and Mine 20/21 areas at its Los Reyes project in Sinaloa. The results are from drilling outside of the current resource area. Highlighted true width intervals comprise 15.80 m @ 1.40 gpt Au, 18 gpt Ag; 2.90 m @ 4.70 gpt Au, 48 gpt Ag; 5.50 m @ 1.30 gpt Au, 13 gpt Ag; 34.70 m @ 4.90 gpt Au, 22 gpt Ag; 3.75 m @ 1.60 gpt Au, 14 gpt Ag.
  • Gold Resource Corp. released recent drilling results from the Don Diego mine in Oaxaca. The released data is from the Three Sisters, Marena, Soledad and Sagrario vein systems. Highlighted true width intercepts comprise 1.67 m @ 2.20 gpt Au, 874 gpt Ag, 0.65% Cu, 1.8% Pb, 3.0% Zn; 3.19 m @ 0.25 gpt Au, 41 gpt Ag, 0.6% Pb, 3.6% Zn; 7.13 m @ 1.54 gpt Au, 175 gpt Ag, 0.21% Cu, 1.1% Pb, 2.2% Zn; 5.09 m @ 0.15 gpt Au, 117 gpt Ag, 3.0% Pb, 8.8% Zn; 3.52 m @ 177 gpt Ag, 3.0% Pb, 9.1% Zn; 3.22 m @ 37 gpt Ag, 0.3% Pb, 5.8% Zn; 4.21 m @ 7.93 gpt Au, 111 gpt Ag, 1.25% Cu, 3.8% Pb, 15.2% Zn; 1.80 m @ 1.81 gpt Au, 40 gpt Ag, 1.09% Cu, 5.5% Pb, 12.3% Zn; 4.21 m @ 2.10 gpt Au, 121 gpt Ag, 0.43% Cu, 1.6% Pb, 7.2% Zn. “Our 2023 exploration objectives are to identify and define mineral resources from the Three Sisters, South Soledad and Sagrario and Marena vein systems”.
  • GR Silver Mining Ltd. announced the final batch of underground drilling results from the Plomosas mine area at its Plomosas project in Sinaloa. Highlighted true width intervals from 28 underground drill holes comprise 2.90 m @ 251 gpt Ag, 2.2%Pb, 2.4% Zn; 8.50 m @ 44 gpt Ag, 0.3% Pb, 0.4% Zn; 1.90 m @ 2.31 gpt Au, 23 gpt Ag, 1.9% Pb, 3.8% Zn; 12.20 m @ 0.70 gpt Au, 42 gpt Ag, 0.5% Pb, 0.4% Zn; 4.70 m @ 0.75 gpt Au, 277 gpt Ag, 0.2% Cu, 7.5% Pb, 2.1% Zn; 4.30 m @ 23 gpt Ag, 0.1% Cu, 1.1% Pb, 6.0% Zn; 4.70 m @ 0.54 gpt Au, 325 gpt Ag, 0.1% Cu, 3.1% Pb, 2.5% Zn; 11.30 m @ 0.20 gpt Au, 161 gpt Ag, 0.1% Cu, 1.0% Pb, 1.5% Zn; 19.70 m @ 158 gpt Ag, 0.1% Cu, 1.9% Pb, 1.8% Zn. “The drilling results continue to reveal attractive wide high-grade silver-polymetallic mineralization in unmined areas at the upper levels of the historic underground mine”.
  • Vizsla Silver Corp. reported drill results from 14 infill holes on the Copala resource area at its Panuco project in Sinaloa. Highlighted true width intervals comprise 15.00 m @ 7.20 gpt Au, 1,142 gpt Ag (including 3.07 m @ 17.72 gpt Au, 2,878 gpt Ag; 20.60 m @ 2.80 gpt Au, 643 gpt Ag, 18.00 m, @ 2.53 gpt Au, 602 gpt Ag (including 2.27 m @ 14.51 3,421 gpt Ag); 4.30 m @ 8.62 gpt Ag, 758 gpt Ag; 2.10 m @ 10.91 gpt Au, 1,920 gpt Ag.

ON DEALS AND CORPORATE ISSUES             

  • Riverside Resources Inc. announced the signing an option agreement to acquire 100% interest in the Union mine, within the Union District in Sonora. Riverside paid $170 K and can earn-in the 100% interest by making a second payment of $100 K anytime within 60 months of signing the agreement, after which a 1.25% NSR is retained the underlying owner, same that can be bought in 0.25% increments of NSR for $250 K each at any time. “. The Union Mine historically produced ~50,000 ounces of gold (“Au”) from the upper oxide zones of manto and chimney bodies according to past reports. The potential for further expansion through a focused exploration is wide open along strike and at depth for both oxide and into sulfide ore targets”.  

ON SOCIAL RESPONSIBILITY

  • No Relevant News.

On the image below: Silicified structure scarp on the foreground of a copper project in Sonora, San Francisco gold mine dumps visible on the other side of the valley. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the Fourth Week of February, 2023.

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By Miguel A Heredia

During the 8th week of the year (February 20th to February 26th, 2023), at least 23 press releases were announced by companies working in Mexico, with ten reporting resources and developments of their properties, six communicating production and financial results, two informing on exploration results, two commenting on Mexican issues, one disclosing deals and corporate issues, one announcing financing issues, and one discussing social issues. ON MEXICO ISSUES, Almaden regretted the decision of Mexico´s Ministry of Economy to deny the two mineral title applications which were first made by Almaden in 2002 and 2008, and which in turn led to the grant of mineral titles in 2003 and 2009, respectively. GoGold, Bear Creek, GR Silver, and Guanajuato Silver reported the best drilling intercepts in Mexico on the fourth week of February, 2023. ON EXPLORATION, In Sonora, Tocvan released results from surface channel sampling of selected area for a bulk sample at its Pilar project.  In Coahuila, Monumental Minerals provided an update and defined drill targets at its Jemi Heavy Earth Rare Element project. ON MINING, Coeur reported Q4 and full year 2022 production and financial results from its Palmarejo mine in Chihuahua. Starcore announced Q3, 2023 production results from its San Martin mine in Queretaro. Equinox provided 2023 guidance for its Los Filos mine in Guerrero. Bear Creek announced 2023 production guidance for its Mercedes mine in Mexico. Gatos Silver released 2023 production and cost guidance for its Cerro Los Gatos mine in Chihuahua. First Majestic reported Q4 and full year 2022 production and financial results from their Mexican mine operations. ON FINANCING, Silver Tiger closed its previously announced bought deal offering for gross proceeds of approximately CAD $18M (El Tigre project, Sonora). ON RESOURCES AND DEVELOPMENT, GoGold reported additional drilling results from Los Ricos South, within the Eagle and Main Deposits in Jalisco. Guanajuato Silver announced drill results from its San Ignacio mine in Guanajuato. Alamos Gold reported Mineral Reserves and Resources for the year-ended 2022 at its Mulatos project, Sonora. Bear Creek released results of recent drilling from its Marianas and Rey de Oro deposits at its Mercedes mine in Sonora. Chesapeake announced updated Minera Resource Estimate for its world class Metates deposit in Durango.  Minera Alamos informed the commencement of drilling at its Santana project in Sonora. GR Silver reported underground drilling results from 35 holes drilled as part of the 2022 infill and exploratory drilling program conducted at its Plomosas project in Sinaloa. Silver Dollar identified five new mineralized target areas at its la Joya project in Durango. Regency Silver announced that two follow-up holes down-dip were completed at its Dios Padre project in Sonora. Vizsla provided a year-end 2022 summary of its activities carried out at its flagship Panuco project in Sinaloa.  ON DEALS AND CORPORATE ISSUES, Minera Alamos granted stock options to its management team, Board of Directors, and certain consultants (Santana project, Sonora).  ON SOCIAL RESPONSIBILITY, Almaden signed a cooperation agreement with the Ejido Santa Maria Zotoltepec, the ejido located closest to its Ixtaca project in Puebla.

ON MEXICO ISSUE

  • Almaden Minerals Ltd., regretted the decision of Mexico´s Ministry of Economy to deny the two mineral title applications which were first made by Almaden in 2002 and 2008, and which in turn led to the grant of mineral titles in 2003 and 2009, respectively. These mineral titles underpin the Ixtaca deposit which was discovered by Almaden in 2010. As previously reported, these mineral titles were reduced to application status as a result of an early 2022 decision of Mexico’s Supreme Court of Justice (SCJN). Almaden believes that this action by the Secretariat of Economy is inconsistent with the Mexican Mining Law, the SCJN decision, and international law. The Company expects to submit arguments challenging the Secretariat of Economy’s submissions to the District Court within the next few days.
  • GoGold Resources Inc., Bear Creek Mining Corporation, GR Silver Mining Ltd, and Guanajuato Silver Company Ltd reported the best drilling intercepts in Mexico on the fourth week of February, 2023. Details are shown in the table below:

ON EXPLORATION

  • Tocvan Ventures Corp., released results from surface channel sampling of selected area from an up to 1,000 tonnes of oxide-gold bulk sample at its Pilar project in Sonora. Channel sampling was completed every 5m perpendicular to exposed mineralization and alteration at surface along the Main Zone and 4-T trends. Eight locations were sampled to test varying levels of exposed mineralization, all eight trench locations returned anomalous gold and silver values. Highlights include TR-2023-001 where seven samples over a 35m trend returned an average grade of 2.2 g/t Au and 14 g/t Ag, ranging from 8.3 g/t Au to 0.1 g/t Au; TR-2023-002 where five samples over a 20m trend returned  an average grade of 2.8 g/t Au and 9 g/t Ag, ranging from 7.1 g/t Au to 0.7 g/t Au; and TR-23-007 where five samples along a 25m trend returned an average grade of 2.2 g/t Au and 30 g/t Ag ranging from 7.3 g/t Au to 0.1 g/t Au. “Bulk Sample material will be extracted and prepared for processing by heap-leach method at a private mining operation less than 25km to the west of Pilar”.
  • Monumental Minerals Corp., provided an update and defined drill targets at its Jemi heavy earth rare element project, located in Coahuila State. The exploration program carried out by the exploration team of the company consisted of detailed mapping and rock sampling, regional stream sediment sampling, ground radiometric geophysical surveys, and lithogeochemical sampling. The exploration effort has been focused on the Jemi dikes and Veladora Norte areas, which host peralkaline intrusion related REE mineralization. “Of the 188 samples with assay results, over one third (76 samples) returned values greater than 0.15% total rare earth oxide (TREO), including 5 samples that returned values greater than 1.0% TREO to a maximum value of 2.4% TREO. The average TREO for all samples is 0.21%, and a minimum value of 9 parts per million (ppm), which was returned in an iron-oxide/calcite vein”. This rock sampling has defined a series of high priority drill targets.

ON MINING

  • Coeur Mining Inc., reported Q4 and full year 2022 production and financial results from its Palmarejo mine in Chihuahua. On Q4, 2022 the company milled 554,247 tonnes of 1.59 g/t Au and 98 g/t Ag with metallurgical recoveries of  92.4% and 85% respectively to produce approximately 26K Oz Au and 1.49M Oz Ag. It sold 25.2K Oz Au and 1.49M Oz Ag at an average realized price of USD $1,519 per Oz Au and USD $21.10 per Oz Ag. Coeur reported metal sales of USD $69.5.4M; cost applicable to sales (CAS) of USD $47.1M; adjusted CAS per Oz Au of USD $1,027 and adjusted CAS per Oz Ag of USD $14.23; exploration expense of USD $1.5M; cash flow from operating activities of USD $18.9M; total capital expenditures of USD $8.1M; and free cash flow of USD $10.8M. On the full year 2022,  Coeur milled approximately 2.2M tonnes of 1.65 g/t Au and 113 g/t Ag with metallurgical recoveries of 92.1% and 84.2% respectively to produce approximately 106.8K Oz Au and 6.71M Oz Ag. It sold 107.1K Oz Au and  6.7M Oz Ag at an average realized price of USD $1,471 per Oz Au and USD $21.78 per Oz Ag. Coeur reported metal sales of USD $303.4M; cost applicable to sales (CAS) of USD $1822.6M; adjusted CAS per Oz Au of USD $883 and adjusted CAS per Oz Ag of USD $13.05; exploration expense of USD $6.6M; cash flow from operating activities of USD $88.4M; total capital expenditures of USD $42.6M; and free cash flow of USD $45.8M.
  • Starcore International Mines Ltd., announced Q3, 2023 production results from its san martin mine in Queretaro. The company milled 58,562 tonnes of 1.29 g/t Au and 9 g/t Ag with metallurgical recoveries of 85.24% and 48.95% respectively to produce 2,182 Oz AuEq.
  • Equinox Gold Corp., provided 2023 guidance for its Los Filos mine in Guerrero. The company expects to produce between 160K-180K Oz Au at cash and all includes sustaining cost of USD $1,460-USD $1,620 and USD $1,680-USD $1,865 per Oz Au produced respectively; and a sustaining cost of USD $40M.
  • Bear Creek Mining Corporation announced 2023 production guidance for its Mercedes mine in Mexico. The company expects to produce 65K-75K Oz Au and 210K-243K Oz Ag during 2023 at an average cash cost per Oz Au in the range of  $830-$890 , and all in sustaining cost of $1,120-$1,290 per Oz Au.
  • Gatos Silver Inc., released 2023 production and cost guidance for its Cerro Los Gatos mine in Chihuahua. The company expects to produce between 7.4-8.2M Oz Ag, 57-63M Lb Zn in Zn concentrates, 36-40M Lb Pb in Pb concentrates, and 5.4-6.2K Oz Au in Pb concentrates (or 12.4-13.8M Oz AgEq). All in sustaining cost for silver production and silver equivalent production has been estimated in USD $11-13 and USD $15.50-17.50 per Oz payable respectively. Gatos Silver also estimated sustaining capital expenditures at USD $45M; and exploration and definition drilling expenditures at USD $13M, including drilling of the south-east deep zone and district exploration.
  • First Majestic Silver Corp., reported Q4 and full year 2022 production and financial results from their Mexican mine operations. The tables below show figures by mine for the period Q4 and full year 2022:

ON FINANCING

  • Silver Tiger Metals Inc., closed its previously announced bought deal offering of 58.1M of common shares at a price of CADS $0.31 per share for gross proceeds of approximately CAD $18M. Gross proceeds will be used to continue advancement of its El Tigre mine in Sonora, and for general corporate purposes.

ON RESOURCES AND DEVELOPMENT

  • GoGold Resources Inc., reported additional drilling results from Los Ricos South, within the Eagle and Main Deposits in Jalisco. Drilling highlights include hole LRGAG-22-110 on the Eagle Deposits with 1.43 g/t Au and 43 g/t Ag (2 g/t AuEq or 150 g/t AgEq) over 62.4m, including 4.57 g/t Au and 71 g/t Ag (5.52 g/t AuEq or 414 g/t AgEq) over 16m, including 17.05 g/t Au and 189 g/t Ag (19.57 g/t AuEq or 1,468 g/t AgEq) over 1.4m; hole LRGAG-22-113 on the Eagle Deposit with 3.29 g/t Au and 358 g/t Ag (8.06 g/t AuEq or 605 g/t AgEq), including 20.05 g/t Au and 2,000 g/t Ag (46.72 g/t AuEq or 3,504 g/t AgEq) over 1.8m, including 40 g/t Au and 3,490 g/t Ag (86.53 g/t AuEq or 6,490 g/t AgEq) over 0.8m, plus 2.32 g/t Au and 58 g/t Ag (3.09 g/t AuEq or 232 g/t AgEq) over 29.5m, including 5.20 g/t Au and 72 g/t Ag (6.16 g/t AuEq or 462 g/t AgEq) over 12.3m, including 21.10 g/t Au and 170 g/t Ag (23.37 g/t AuEq or 1,752 g/t AgEq) over 1m; hole LRGAG-22-115 on the Eagle Deposit with 1.44 g/t Au and 75 g/t Ag (2.45 g/t AuEq or 183 g/t AgEq) over 31.5m, including 3.38 g/t Au and 147 g/t Ag (5.34 g/t AuEq or 400 g/t AgEq) over 11m, including 12.85 g/t Au and 64 g/t Ag (13.70 g/t AuEq or 1,028 g/t AgEq) over 1; and hole LRGAG-22-227 on the Main Deposit with 1.28 g/t Au and 105 g/t Ag (2.68 g/t AuEq or 201 g/t AgEq) over 29m, including 4.84 g/t Au and 352 g/t Ag (9.54 g/t AuEq or 715 g/t AgEq) over 6.3m, including 24 g/t Au and 335 g/t Ag (28.47 g/t AuEq or 2,135 g/t AgEq) over 0.7m. The Eagle Deposit adjoins the Main Deposit and represents a northern extension of the previously defined Mineral Resource Estimate in the Los Ricos South PEA.
  • Guanajuato Silver Company Ltd., announced drill results from its San Ignacio mine in Guanajuato. Drilling highlights include hole UGSI22-005, the best drill hole the company has drilled at any of its mines acquired from Great Panther, with 5.11 g/t Au and 810 g/t Ag (1,219 g/t AgEq) over a true width (TW) of 4.92m, including 25.84 g/t Au and 4,914 g/t Ag (6,981 g/t AgEq) over a TW of 0.42m, including 28.23 g/t Au and 1,693 g/t Ag (3,951 g/t AgEq) over a TW of 0.42m. This significant drill result on the Melladito vein will be followed up with additional drill holes attempting to follow the down dip extension of the vein within the Company’s 2023 drill campaign. In addition, the company is in the midst of driving a 400m access ramp from Melladito to the analogous Purisima vein, which offers the potential for expanded production at San Ignacio mine. Guanajuato Silver also confirmed that it will provide an updated mineral resource estimate which is expected to be completed by Q3, 2023.
  • Alamos Gold Inc., reported Mineral Reserves and Resources for the year-ended 2022 at its Mulatos project, Sonora. The company reported Proven + Probable Mineral Reserves of 26,734,000 tons with an average grade of 1.95 g/t Au for a total of 1,679,000 Oz Au contained. Alamos Gold also announced Measured + Indicated Mineral Resources (exclusive of Mineral Reserves) for 10,302,000 tonnes of 2.52 g/t Au for a total of 502K Oz Au contained, and Inferred Resources for 1,774,000 tonnes of 1.27 g/t Au for a total of 72K Oz Au contained. In addition, the company has budgeted a total of USD $17M for exploration in 2023. This budget comprises 16,000m of surface exploration drilling at Puerto del Aire, Gap Victor, and Estrella Zones, and 34,000m for regional exploration on high priority targets, including Halcon, Halcon West, Carricito, Bajios, and Jaspe.
  • Bear Creek Mining Corporation released results of recent underground drilling from its Marianas and Rey de Oro deposits at its Mercedes mine in Sonora. Drilling highlights (reported in true widths) include hole UG-MR22-105 collared on Marianas Deposit with 5.68 g/t Au and 6 g/t Ag over 2.8m, plus 12.43 g/t Au and 12 g/t Ag over 2.8m; hole UG- MR22-106 on Mariana Deposit with 41 g/t Au and 24 g/t Ag over 0.8m; hole UG-MAR22-113 on Mariana Deposit with 8.47 g/t Au and 32 g/t Ag over 3m, plus 5.02 g/t Au and 7 g/t Ag over 3m; hole  UG-RDO23-075 collared on Rey de Oro Deposit with 10.23 g/t Au and 182 g/t Ag over 3.5m; hole UG-RDO22-077 on Rey de Oro Deposit with 15.35 g/t Au and 109 g/t Ag over 1.03m; and hole M22-934D on GAP Deposit with 6.47 g/t Au and 58 g/t Ag over 2.2m. “The Marianas and GAP drilling represent step-outs from the existing underground mining operations along the main Mercedes vein zone.  The Rey de Oro drilling represents extensions downdip and along strike of the existing reserves and underground operations”.
  • Chesapeake Gold Corp., announced updated Minera Resource Estimate (MRE) for its world class Metates deposit in Durango. The updated MRE incorporates an additional 23 holes drilled by Chesapeake and has an effective date of January 28, 2023.  It include Measured + Indicated Resources for 921.2M tonnes with average grades of 0.57 g/t Au and 14 g/t Ag for a total of 16.77M Oz Au and 423.2M Oz Ag contained, and Inferred Resources for 139.5M tonnes with average grades of 0.47 g/t Au and 13 g/t Ag for a total of 2.13M Oz Au and 59 M Oz Ag contained. “This updated MRE together with on-going metallurgical work will form the basis of a new Pre-Feasibility Study”.
  • Minera Alamos Inc., informed the commencement of drilling at its Santana project in Sonora. The company plans to drill a number of gold bearing breccia pipes in the cluster that comprise the Santana project. Some of these priority targets such as Zata and Benjamin Hill have never been drilled before. Over 10,000m of drilling in up to 80 holes have been planned by the company`s exploration team to drill-test the targets.
  • GR Silver Mining Ltd., reported underground drilling results from 35 holes drilled as part of the 2022 infill and exploratory drilling program conducted at its Plomosas project in Sinaloa. Drilling highlights ( reported in true widths) include hole PLIP22-30 with 69 g/t Ag, 2.67 g/t Au, 0.1% Pb, 0.2% Zn, and 0.2% Cu (353 g/t AgEq) over 14.1m, including 227 g/t Ag, 5.39 g/t Au, 0.3% Pb, 0.6% Zn, and 0.4% Cu (808 g/t AgEq) over 1.6m, including 219 g/t Ag, 40.18 g/t Au, 0.3% Pb, and 1% Cu (4,075 g/t AgEq) over 0.6m; hole PLIP22-52 with 2 g/t Ag and 1.91 g/t Au (182 g/t AgEq) over 8.1m, including 33 g/t Ag and 64.5 g/t Au (6,033 g/t AgEq) over 0.2M; hole PLIP22-29 with 55 g/t Ag, 1.01 g/t Au, 3.1% Pb, 4.8% Zn, and 0.2% Cu (441 g/t AgEq) over 21.7m, including 299 g/t Ag, 5.42 g/t Au, 1.8% Pb, 9.7% Zn, and 0.6% Cu (1,291 g/t AgEq) over 2.8m; hole PLIP22-35 with 20 g/t Ag, 1.8 g/t Au, 0.5% Pb, 1.5% Zn, and 0.3% Cu (221 g/t AgEq) over 14.2m, including 44 g/t Ag, 1.1 g/t Au, 10.4% Pb, 15.3% Pb, and 0.3% Cu (1,059 g/t AgEq) over 0.2m, including 46 g/t Ag, 6.09 g/t Au, 2.7% Pb, 8.4% Pb, and 0.8% Cu (1,105 g/t AgEq) over 0.8m; and hole PLIP22-42 with 30 g/t Ag, 0.76 g/t Au, 7.9% Pb, 7.9% Zn, and 0.3% Cu (669 g/t AgEq) over 8.3m, including 49 g/t Ag, 0.41 g/t Au, 7.8% Pb, 10.9% Zn, and 1.1% Cu (846 g/t AgEq) over 0.9m, including 50 g/t Ag, 1.97 g/t Au, 19.7 g/t Pb, 15.6% Zn, and 0.3% Cu (1,422 g/t AgEq) over 2.7m.
  • Silver Dollar Resources Inc., identified five new mineralized target areas at its la Joya project in Durango. These areas are located in the unexplored portion of the property and were outlined during the last exploration campaign which consisted of geological mapping and sampling. The Verde and Hueco Areas were partially drilled by a previous operator, while Dyke North, Dyke South, and South-East Areas never have been drill tested before.
  • Regency Silver Corp., announced that two follow-up holes down-dip from REG-22-01 were completed at its Dios Padre project in Sonora. Hole REG-22-01 intersected 6.84 g/t Au, 22 g/t Ag, and 0.88% Cu over 35.8m, including 13.97 g/t Au, 50 g/t Ag, and 1.11% Cu over 9.8m. Hole REG-23-14 encountered 32m of pyrite-specularite-chalcopyrite supported breccia from approximately 454-486m within a broader zone of disseminated and vein hosted mineralization approximately 25m down dip from REG-22-01, while hole REG-23-15 intersected 120m of specularite-pyrite-chalcopyrite supported breccia from approximately 400-520m within a broader zone of disseminated and vein hosted mineralization approximately 85m down-dip from REG-22-01 and about 62m down-dip from REG-23-14.
  • Vizsla Silver Corp., provided a year-end 2022 summary of its activities carried out at its flagship Panuco project in Sinaloa, and outlined the goals for 2023. During Q1, 2022 the company announced its initial mineral resource estimate (MRE) centered on the western portion of the Panuco district.  In 2022, Vizsla completed over 121,000m of additional drilling to conclude in an updated MRE on January 2023, with a significant increase in gold and silver as well as in the overall grade. The company also discovered other near-surface, high-grade structures, demonstrating the growth potential outboard of the known resource boundaries. “For 2023, our focus is on incremental expansion and de-risking of the current resource base. With a fully funded +90,000m drill program utilizing seven drill rigs, we plan to update the current Panuco resource estimate in the second half of 2023, which will be followed in due course by an initial Preliminary Economic Assessment”.

ON DEALS AND CORPORATE ISSUES

  • Minera Alamos Inc., granted stock options to its management team, Board of Directors, and certain consultants. The Board of Directors approved the issuance of a total of 2.25M options at an exercise price of $0.51, and 6.9M at an exercise price of $0.45. All the options will expire in 5 years and vest 50% on the first anniversary of their grant and 50% on the second anniversary (Santana project, Sonora).

ON SOCIAL RESPONSIBILITY

  • Almaden Minerals Ltd., signed a cooperation agreement with the Ejido Santa Maria Zotoltepec, the ejido located closest to its Ixtaca project in Puebla, to support an agro-technological package aimed at sustainable plan nutrition and soil enrichment.

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

On the picture above, an outcrop of a flow banded rhyolite in a low-sulphidation epithermal veins prospect in Sonora Mexico.  Photo by Miguel A Heredia.

Mexico’s Best Drilling Intercepts, Fourth Week of February 2023

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Four companies published drilling results from their properties during the week. GoGold’s Los Ricos South is a property with prior small scale mining on structures in a low to intermediate sulfidation epithermal system in Jalisco. The company has been demonstrating with drilling for the past couple of years that mineralization is well beyond the border of the previously worked high grade structures, with mineable grades over tens of meters.

GR Silver has a large property in Sinaloa encompassing several mineralized systems. The current results are from the past producing Plomosas mine area, which is part of a strongly mineralized centre of epithermal intermediate sulfidation mineralization mined not so long ago by IMMSA.

Bear Creek’s Mercedes property in Sonora is mining veins part of a low sulfidation epithermal system with good gold grades.

The results from the San Ignacio vein system by Guanajuato Silver are from low sulfidation epithermal mineralization to be mined for processing on the the Cata Mill at the Valenciana mines complex. San Ignacio forms part of the properties package the company obtained from Great Panther not long ago.

The Mining and Exploration News in Mexico: Highlights on the Third Week of February 2023

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By Jorge Cirett

During the 7th week of the year (February 13th to February 19th, 2023), 13 companies working in Mexico released news on their properties. One company informed on a new exploration model for its projects. Two companies informed on Q4 2022 production and 2023 guidance. One company closed a first tranche on a financing round, while one other closed the previously announced private placement and one more granted shares and stock options to board members. One company filed a PFS on its project and one more updated on the resource estimate for one of its properties. Two companies informed on drilling results and work on their advanced properties. Two companies informed they have earned 50% interest in a project, and one other received notice of claims totaling US$19.7 M. ON MEXICO ISSUES, The Mexican president continues to assert his power by claiming that all lithium reserves will pass to a government’s company. The Sonora State Economy Secretary vigorously backed the importance of the mining industry in the State. ON EXPLORATION, in Coahuila, Southern Empire Resources claims mineralization at its properties in Durango might be of Carlin style. ON MINING, Gold Resource and Capstone Copper released Q4 2022 production or/and financial production reports and guidance for 2023. ON FINANCING, Reyna Silver closed the first tranche of its private placement (C$5 M), Mag Silver completed its bought deal private placement (C$23 M) and Orogen Royalties granted shares and stock options to independent board members. ON RESOURCES AND DEVELOPMENT, Discovery Silver filed the PFS on the Cordero project in Chihuahua. Vizsla Silver reported drilling results at Panuco, in Sinaloa. Avino Silver updated the mineral resource estimate for all deposits at its Avino property in Durango. Impact Silver released drilling results from the Aurora 2 zone at its Capire project in Guerrero. ON DEALS AND CORPORATE ISSUES, Silver Spruce Resources and Colibri Resource earned 50% ownership in the Diamante property in Sonora. Magna Gold received notices on claims totaling $19.7 M. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • The Mexican president, Andrés M. López Obrador announced on one of its daily propaganda conferences: “I am to sign the decree to forward the lithium concession, all the reserves, to the Energy Secretariat”. In April 2022 the government declared lithium as a public utility mineral, and its exploitation to be only possible under the public enterprise Litio para México.
  • Margarita Vélez Rocha, the Sonora Economy Secretary, recognized the importance of the mining sector in the State, pointing that it directly employs more than 26 thousand workers and more than 120 thousand indirectly, with 39 municipalities having mining activities and 23 on which it is the main economic activity.

ON EXPLORATION

  • Southern Empire Resources Corp. announced that synchrotron radiation micro-X-ray fluorescence mineralogical studies of drill core samples from its Pedro project in Durango reveal mineralogical similarities to deposits of the Carlin belt in Nevada. Gold mineralization at Centauro and Pedro projects, both in Durango, is associated to hematite-stained, weak to moderately silicified brecciated conglomerate of the Eocene to Oligocene Ahuichila Formation. Historic drilling results include intervals like 5.60 m @ 0.59 gpt Au; 19.82 m @ 0.31 gpt Au; 15.23 m @ 0.58 gpt Au; 50 m @ 0.28 gpt Au; 88.10 m @ 0.24 gpt Au; 112.40 m @ 0.12 gpt Au, with anomalous Ag, As, Sb Tl and Hg.

ON MINING

  • Gold Resource Corp. issued 2023 guidance and suspension of dividends. For 2023 the company expects to produce 17 to 19 K Oz Au, 0.9 to 1.0 M Oz Ag (or 30 to 32 K Oz AuEq) at cash cost $1,000 to $1,050 per AuEq Oz and an AISC of $1,250 to $1,350 per AuEq Oz (Consolidated: $1,650 to $1,750 per AuEq Oz). “the lower grade profile is expected to continue through 2023 and is projected to negatively impact operating cash flows and total cash costs per gold equivalent ounce”, and accordingly “will suspend the quarterly dividend until such time that it may become practicable to reinstate” (Don David, Oaxaca).
  • Capstone Copper Corp. reported financial results for Q4 2022 and year 2022, including figures from its Mexican operations. At Cozamin, in Zacatecas, 3,430 tpd were milled during the quarter to produce 5.8 K tonnes of copper, totaling 24.5 K tonnes Cu on the year at cash cost $1.40 per Lb Cu (which is the lowest cost for Capstone operations). Cash and cash equivalents stood at $170.3 M by the end of the period.

ON FINANCING

  • Reyna Silver Corp. announced the closing of the first tranche of its bought deal private placement for gross proceeds of C$5 M (Guigui and Batopilas, Chihuahua).
  • Mag Silver Corp. completed the previously announced bought deal private placement for aggregate gross proceeds of C$23 M (Juanicipio (44%), Zacatecas).
  • Orogen Royalties Inc. authorized the granting of 156 K restricted share units, 156 K deferred share units and 238 K stock options to independent board members (Royalties on Ermitaño, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Discovery Silver Corp. filed the pre-feasibility study (PFS) on its Cordero property in Chihuahua.
  • Vizsla Silver Corp. reported results from 19 holes on the Copala structure of the Panuco project in Sinaloa. The results represent step-out and infill drilling on the Copala structure that has now been traced for 1,110 m of strike and 400 m downdip. Highlighted true width intervals comprise 2.50 m @ 1,673 gpt Ag, 5.39 gpt Au; 3.35 m @ 428 gpt Ag, 3.64 gpt Au; 2.40 m @ 288 gpt Ag, 1.73 gpt Au; 13.70 m @ 270 gpt Ag, 1.48 gpt Au; 6.00 m @ 648 gpt Ag, 4.29 gpt Au; 3.00 m @ 247 gpt Ag, 2.17 gpt Au; 2.90 m @ 1,010 gpt Ag, 5.91 gpt Au; 6.20 m @ 242 gpt Ag, 1.15 gpt Au; 4.61 m @ 453 gpt Ag, 9.16 gpt Au; 6.00 m @ 176 gpt Ag, 1.12 gpt Au.
  • Avino Silver & Gold Mines Ltd. completed an updated mineral resource estimate for the Avino ET, San Gonzalo, La Potosina, Guadalupe and Oxide Tailing deposits at its Avino property in Durango. Measured and indicated resources comprise 34.7 M tonnes @ 63 gpt Ag, 0.54 gpt Au, 0.39% Cu (or 144 gpt AgEq) containing 70.0 M Oz Ag, 596.6 K Oz Au, 301.4 M Lb Cu. Inferred resources stand at 19.3 M tonnes @ 46 gpt Ag, 0.34 gpt Au, 0.37% Cu (112 gpt AgEq) containing 28.4 M Oz Ag, 212.6 K Oz Au, 158.5 M Lb Cu. Another nearby property, La Preciosa, is also held by Avino and contains 98.6 M Oz Ag, 189.2 K Oz Au in indicated resources and 21.3 M Oz Ag, 35.5 K Oz Au in inferred resources.
  • Impact Silver Corp. announced drill results from the Aurora 2 zone, 1.3 km northeast of the Capire processing plant (in Guerrero), and 16 km south of the company’s active mining operations at the Royal Mines of Zacualpan in Estado de Mexico. The mineralization at the site consists of volcanogenic massive sulfides (VMS) lenses, extending the zone to the west. Highlighted true width intervals comprise 2.39 m @ 106 gpt Ag, 0.42 gpt Au, 0.3% Pb, 0.8% Zn; 3.73 m @ 66 gpt Ag, 0.40 gpt Au, 0.2% Pb, 0.5% Zn; 7.48 m @ 128 gpt Ag, 0.42 gpt Au, 0.8% Pb, 1.8% Zn; 1.01 m @ 138 gpt Ag, 0.49 gpt Ag, 0.5% Pb, 1.1% Zn; 7.95 m @ 63 gpt Ag, 0.52 gpt Au, 0.9% Pb, 2.8% Zn; 2.11 m @ 51 gpt Ag, 0.15 gpt Au, 0.5% Pb, 1.9% Zn; 2.38 m @ 142 gpt Ag, 0.37 gpt Au, 0.2% Pb, 0.5% Zn; 3.28 m @ 34 gpt Ag, 0.24 gpt Au, 0.4% Pb, 1.2% Zn.   

ON DEALS AND CORPORATE ISSUES

  • Silver Spruce Resources Inc. and Colibri Resource Corp. reported the companies have earned 50% ownership interest in the Diamante project in Sonora, while Vendor Bimsa Minera SA de CV retains 50% ownership in the Property. “The 1,057-hectare Diamante property is located adjacent to the Jackie property, a joint venture with Colibri, which covers 1,113 hectares, providing the company with a total of 2,170 hectares of exploration ground. Diamante hosts a number of historical showings and combined with mineralization on the Mezquite and Jackie properties exhibit the geological characteristics of epithermal low to intermediate sulfidation Ag-Au (Pb-Zn)”. With completion of the initial earn-in, Silver Spruce and Colibri together will become equal joint venture partners with the Vendor in BIMCOL Minera, with a six months exclusive period to purchase the remaining 50% by paying either US$2.1 M or US$1.45 M and 2% NSR.
  • Magna Gold Corp. informed the receipt of notices of claims from three of its creditors, Cominivi Servicios S.A. de C.V., Covoro Mining Solutions Mexicana S. de R. L. de C.V. and Sidney W. French S.A. de C.V. for US$6.49 M. Also, a notice of commencement of arbitration with Peal México, S.A. de C.V. was received on a claim of US$13.2 M (San Francisco, Sonora).

ON SOCIAL RESPONSIBILITY

  • No Relevant News.

On the image below: Quartz specularite veining cut by late quartz veinlet on a copper project in the Sonoran Desert. Picture by Abraham López.

Mexico’s Best Drilling Intercepts on the Third Week of February 2023

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Two companies released new drilling intervals during the third week of February 2023, from projects in Mexico. Both projects display mineralization of low to intermediate sulfidation epithermal style in structures. Vizsla Silver has been exploring the Panuco project in Sinaloa for the last few years, with very good results, whereas Impact Silver has been mining on the Royal Mines of Zacualpan District in Estado de Mexico (Mexico State) for many years.

The Mining and Exploration News in Mexico: Highlights on the Second Week of February, 2023.

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By Miguel A Heredia

During the 6th week of the year (February 6th to February 12th, 2023), at least 14 press releases were announced by companies working in Mexico, with five disclosing deals and corporate issues, three reporting resources and developments of their properties, three announcing financing issues, two informing on exploration results, and one commenting on Mexican issues. ON MEXICO ISSUES, Golden Minerals Corporation was the only mining company reporting drilling results on the second week of February, 2023.  ON EXPLORATION, In Sonora, Prismo filed a drilling permit application for its Pavito project. In Chihuahua, Golden Minerals reported results from the final 10 holes of the third drill program conducted at its Yoquivo project.  ON MINING, no relevant news.  ON FINANCING, Barksdale announced that 8,050,287 common share purchase warrants were exercised prior to their expiration (San Javier project, Sonora). GoGold closed its previously announced bought deal offering for gross proceed of CAD $65M (Los Ricos North and South projects, Jalisco). MAG Silver completed its previously announced bought deal public offering for gross proceeds of USD $42,558,250 (Juanicipio project, Zacatecas). ON RESOURCES AND DEVELOPMENT, Sonoro Gold announced an updated Mineral Resource Estimate for its Cerro Caliche project in Sonora.  Prime Mining announced the details of its 2023 work program objectives and strategy at its Los Reyes project in Sinaloa and will provide a 2022 progress report in February, 2023. Torex provided an inaugural quarterly update on its Media Luna project in Guerrero. ON DEALS AND CORPORATE ISSUES, Colibri and its partner Silver Spruce declared that have earned 50% ownership interest in the Diamante property in Sonora. Discovery Silver announced that its shares will be listed and commence trading on the Toronto Stock Exchange (Cordero project, Chihuahua). Consolidated Zinc entered into a binding conditional share sale agreement with Impact to sell its Plomosas project in Chihuahua. Vizsla, as part of its incentive compensation plan, granted stock options to directors, officers, employees and consultants of the company (Panuco project, Sinaloa). Heliostar announced that their shares remain in a trading halt due to the acquisition of the Ana Paula project in Guerrero from Argonaut Gold.  ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUE

  • Golden Minerals was the only mining company reporting drilling results on the second week of February, 2023. Details are shown in the table below:

ON EXPLORATION

  • Prismo Metals Inc., filed a drilling permit application for its Pavito project in Sonora. The company anticipates the drilling permit will be approved in early March, 2023. Prismo plans to conduct an initial 2,500m drill program in the first half of 2023.
  • Golden Minerals Company reported results from the final 10 holes of the third drill program conducted at its Yoquivo project. Drilling highlights (widths reported are true widths) include hole YQ-22-028 with 3.81 g/t Au and 1,585 g/t Ag over 0.76m on the New Vein, plus 1.16 g/t Au and 105 g/t Ag over 0.80m on the Pertenencia Hangingwall Vein, plus 4.25 g/t Au and 449 g/t Ag over 1.16m on the Camila Hangingwall Vein, plus 1.45 g/t Au and 510 g/t Ag over 4.80m on the Camila Vein; hole YQ-22-031 with 3.86 g/t Au and 668 g/t Ag over 2.29m on the Pertenencia Vein; and hole YQ-22-034 with 1.3 g/t Au and 545 g/t Ag on the San Francisco Hangingwall Vein.

ON MINING

  • No relevant news.

ON FINANCING

  • Barksdale Resources Corp., announced that 8,050,287 common share purchase warrants, with an exercise price of $0.55 were exercised prior to their January 31, 2023 expiry. “The warrant exercises generated gross proceeds of approximately $4.4M, with approximately $3.8M coming from warrant exercises in January 2023. As of February 3, the Company’s unaudited cash position is approximately $6.6M with issued capital of 80,239,886 common shares. (San Javier project, Sonora).
  • GoGold Resources Inc., closed its previously announced bought deal offering of 28.9M common shares at a price of CAD $2.25 for gross proceed of approximately CAD $65M. Net proceeds will be used to advance the Los Ricos North and South projects in Jalisco. A syndicate of underwriters hold an option to purchase up to an additional 4,335,000 common shares at a price of CAD $2.25 per common share, exercisable in whole or in part, on or before March 10, 2023.
  • MAG Silver Corp., completed its previously announced bought deal public offering of 2,905,000 common shares, including 170,000 common shares issued upon the partial exercise of the over-allotment option, at a price of USD $14.65 per common share for gross proceeds of USD $42,558,250. Net proceeds will be used to fund exploration on the Juanicipio and MAG´s other projects, certain sustaining capital requirements at the Juanicipio project, and for working capital and general corporate purposes.

ON RESOURCES AND DEVELOPMENT

  • Sonoro Gold Corp., announced an updated Mineral Resource Estimate (MRE) for its Cerro Caliche project in Sonora, in accordance with the requirements of NI 43-101.  The MRE, with an effective date of January 26, 2023 is based on 59,500m of drilled data including 544 drill holes, 17 trenches and assays for 57,500m of the drilled data. The pit constrained MRE include an indicated resource of 19.9M tonnes with grades of 0.44 g/t Au and 3 g/t Ag (0.46 g/t AuEq) for a total of 280K Oz Au and 2.23M Oz Ag (290K Oz AuEq) contained, and inferred resources of 10.55M tonnes with grades of 0.42 g/t Au and 4 g/t Ag (0.44 g/t AuEq) for a total of 140K Oz Au and 1.34M Oz Ag (150K Oz AuEq).
  • Prime Mining Corp., announced the details of its 2023 work program objectives and strategy at its Los Reyes project in Sinaloa and will provide a 2022 progress report in February, 2023. The company has completed 110,000m of drilling in 2021 – 2022 to contribute to an updated NI 43-101 Mineral Resource Estimate (MRE) which is expected to be released in Q2, 2023. For 2023, Prime has budgeted initial 35,000m in  step-out drilling along the three known deposits (Guadalupe, Z-T, and Central), as well as in generative exploration drilling at key targets in the Los Reyes mining district. Additionally, Prime plans to continue metallurgical test work and metallurgical domain classification of the deposits; to complete preliminary geotechnical analysis of the resource areas; and further mining assessment to advance the property to a potential future development. The company also will continue with the environmental base line work as well as the work dialogue with the community with strong emphasis on water programs and education.  All these programs are fully funded for 2023 with the completion of an over-subscribed $21M private placement on December 22, 2023.
  • Torex Gold Resources Inc., provided an inaugural quarterly update on its Media Luna project in Guerrero. Development of Media Luna is well underway with the project tracking to schedule and to budget. Capital expenditures related to the development of Media Luna are unchanged at USD $874.5M. As at year-end, Torex had commitments in place for USD $229.7M of project expenditures, including USD $124.7M of expenditures incurred. Torex expects to incur USD $390M to USD $440M of capital expenditures at Media Luna in 2023, which is forecasted to be the peak year of investment. All critical path engineering is on track, focused on finalization of key process equipment sizing and specifications as well as continued detailing of the new flotation plant. The Guajes Tunnel and South Portals advanced steady. Breakthrough of the Guajes Tunnel on the south side of the Balsas River remains on track for Q1 2024. The tunnel has successfully crossed under the Balsas River with no issues related to ground conditions or water. Additionally, multiple surface constructions have advanced steady. The company anticipates first production in late 2024.

ON DEALS AND CORPORATE ISSUES

  • Colibri Resource Corporation and its partner Silver Spruce Resources declared that have earned 50% ownership interest in the Diamante property in Sonora. The vendor, Bimsa Minera S.A. de C.V. , retains the remainder 50% ownership interest in the property.
  • Discovery Silver Corp., announced that its shares will be listed and commence trading on the Toronto Stock Exchange (TSX) under the symbol “DSV”, effective as February 3, 2023 (Cordero project, Chihuahua).
  • Consolidated Zinc Limited entered into a binding conditional share sale agreement with Impact Silver Corp., to sell its 100% legal and beneficial interest in Minera Latin American Zinc S.A.P.I. de C.V., a subsidiary of the company that owns the Plomosas project in Chihuahua for USD $6M. The sale agreement for the proposed transaction consist of USD $3M in cash and USD $3M in Impact Silver shares, and the payment of a 12% net profit interest royalty.
  • Vizsla Silver Corp., as part of its incentive compensation plan, granted 2,130,000 stock options at an exercise price of $1.60 and 1,133,572 restricted share units to directors, officers, employees and consultants of the company (Panuco project, Sinaloa).
  • Heliostar Metals Inc., announced that their shares remain in a trading halt due to the acquisition of the Ana Paula project in Guerrero from Argonaut Gold, since this kind of transactions require a number of key documents for the security exchange.

ON SOCIAL RESPONSIBILITY

  • No relevant news.

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

On the picture above, an old adit driven along low-angle sheeted quartz veins in an orogenic gold prospect in Sonora Mexico.  Photo by Miguel A Heredia.

Mexico´s Best Drilling Intercepts on the Second Week of February 2023

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During this period only Golden Minerals Company released drilling results from its Yoquivo project in Mexico. The property seems to be the host for low sulfidation epithermal mineralization in structures up to several meters in width, hosted in a window of andesitic rocks of the Lower Volcanic Group, underlying felsic tuffs of the Upper Volcanic Group in the Sierra Madre of Chihuahua. These are the last results from the third drilling program that commenced on May 2022, comprising 34 holes totaling 9,268 meters. The primary focus of the program was to produce a mineral resource estimate compliant NI-43-101 technical report, estimated to be completed in Q1 2023.