Highlights on the Third Week of November, 2018. Mining and Exploration News in Mexico

IMG_5042 - copia

By Jorge Cirett

During the 46th week of the year (November 19th to November 25th, 2018), at least 22 press releases were announced by companies working in Mexico. Radius, Prize Mining, Silver Viper, Riverside and Golden Minerals released advances in exploration. Sierra Metals, Mag Silver, Leagold and Starcore released quarterly reports. Telson released news on metallurgy. No financing was reported this week. Odyssey and Minera Alamos reported on advances at its properties, while Leagold presented an updated resource base. Pan American Silver and Tahoe agreed on Tahoe’s acquisition by PAS. Golden Minerals acquired a property. ON MEXICO ISSUES, CAMIMEX released figures on copper production in Mexico. ON EXPLORATION, In Sonora, Silver Viper released interesting results from the Virginia project in Sonora. Riverside informed on four new targets at its Cecilia project. In Chihuahua, Golden Minerals released rock sampling results from its Navegantes project. Radius finished drilling at the Amalia project, results pending. In Coahuila, Prize Mining released drill results from the Manto Negro project. ON MINING, Sierra Metals, Mag Silver, Leagold Mining and Starcore presented quarterly reports. Telson is investing on metallurgical studies at its Campo Morado mine in Guerrero. ON FINANCING, No relevant news. ON RESOURCES AND DEVELOPMENT, Odyssey Marine Exploration updated on the Don Diego project offshore Baja California Sur. Minera Alamos presented mapping and sampling results on the Divisadero zone of its Santana project in Sonora. Leagold announced a significant increase in open pit reserves at its Los Filos mine in Guerrero.  ON DEALS AND CORPORATE ISSUES, Goldplay lost its director, Laura Diaz, as she has been appointed as General Director of Mines in Mexico. Pan American Silver entered into an agreement to acquire Tahoe Resources. Golden Minerals optioned the Navegantes property in Chihuahua.

ON MEXICO ISSUES

  • According to CAMIMEX (in a note from opportimes) copper production in Mexico has been stable. During 2017 the world´s copper production was 19.7 M tonnes, a 2% decrease from 2016. Mexico produced 742 K tonnes of copper in 2017, against 766 K tonnes produced in 2016, a 3.1% decrement. Sonora produces over 84% of the country’s total, with Zacatecas and San Luis Potosi following suit. Coming additions to production include El Boleo in Baja California Sur, which is to double its production to 28.5 tonnes; Media Luna in Guerrero is to add 21 K tonnes in 2022 and El Pilar project in Sonora could add 36 K tonnes in 2020.

ON EXPLORATION

  • Radius Gold Inc. completed drilling at its Amalia project in Chihuahua. Nine holes, for a total of 1,909 m were diamond drilled in a program funded by Pan American Silver under a JV. The Campamento, Guadalupe, San Pedro and Dulces Nombres targets were tested across a strike length of 1.8 Km “following the trace of a large regional fault and associated surficial epithermal gold and silver mineralization”. Results pending.
  • Prize Mining Corp. released results from the first four holes at the Manto Negro stratiform copper project in Coahuila. Core length drill intersections comprise 4.40 m @ 1.02% Cu, 28 g/t Ag; 3.55 m @ 1.69% Cu, 28 g/t Ag at El Granizo; 4.10 m @ 0.88% Cu, 49 g/t Ag; 3.40 m @ 1.58% Cu, 122 g/t Ag at El Pilar Grande. At El Rincon, 1.6 Km north from El Pilar Grande, rock channel sampling averaged 3.41 m @ 2.13% Cu, 63 g/t Ag.
  • Silver Viper Minerals Corp. released the first batch of analyses from its initial drilling program at La Virginia project, in Sonora. Results have been received for five of the eight holes from which samples were submitted, with relevant intervals comprising: 9.70 m @ 1.20 g/t Au, 58 g/t Ag (2.03 g/t AuEq), including 2.72 m @ 3.34 g/t Au, 133 g/t Ag (5.24 g/t AuEq); 12.6 m @ 1.04 g/t Au, 79 g/t Ag (2.17 g/t AuEq), including 3.85 m @ 1.88 g/t Au, 152 g/t Ag (4.05 g/t AuEq); 0.7 m @ 2.25 g/t Au, 49 g/t Ag (2.95 g/t AuEq); 8.50 m @ 1.26 g/t Au, 55 g/t Ag (2.05 g/t AuEq) including 1.89 m @ 2.43 g/t Au, 81 g/t Ag (3.58 g/t AuEq); 0.94 m @ 0.96 g/t Au, 49 g/t Ag (1.66 g/t AuEq). The reported holes were collared on Las Huatas zone, with the first two testing parallel veins to the main trend, whereas the last three tested the previously identified main trend, generally intercepting mineralization at expected depths, widths and grades. “The intercepts are characteristic of previous hits on the project, where gold and silver bearing quartz veining/stockwork/breccia fill is often hosted in close proximity to the fractured contact between andesites of the lower volcanic succession and pre-mineral dacite dykes. Mineralization is hosted by both lithologies with the intervals often exhibiting strong silica overprint”.
  • Riverside Resources Inc. informed rock sampling and mapping defined four new targets at its Cecilia project in Sonora. The recent work was conducted on a 50 square km area, checking on previous soil sampling results. The Casa de Piedra, Los Llanos, Cruz and Cruz II targets were outlined, forming structural corridors up to 2 km long of quartz veins (locally banded, locally bearing calcite), anastomosing quartz veins, veins and quartz stockworks that can be up to 30 m in width and locally up 100 m in width. Alteration assemblages in these zones include sericite, silica, kaolinite and buddingtonite. All these areas display anomalous gold values, of up to 2.6 g/t Au.
  • Golden Minerals Co. released rock sampling results from its recently optioned Navegantes project in Chihuahua. Navegantes covers two vein systems, Navegantes and San Pedro‐San Francisco) as well as a number of smaller subsidiary veins, with mineralization occurring as iron oxides within quartz veins ranging up to 2 m in width and 800 m in length. Highlighted samples comprise 1.0 m @ 1,585 g/t Ag; 1.45 m @ 759 g/t Ag; 1.1 m @ 639 g/t Au; 2.1 m @ 472 g/t Ag.

ON MINING

  • Sierra Metals Inc. presented its third quarter 2018 financial report. The company, that has two mines in Mexico and one in Peru, saw its EBITDA reduced 3% in a yearly basis to $18.8 M, due to the decrease in metal prices. At the end of the period, Sierra’s net debt was $30.7 M, and its cash and cash equivalents $30.7 M. At Bolivar in Chihuahua, quarter on quarter production was affected by heavy rains, but year on year production was still increased, with the goal of achieving 3,600 tonnes per day (tpd) in Q1 2019. At Cusi, in Chihuahua, the mill continues to run at the 650 tpd capacity. The additional mill being installed will increase capacity to 1,200 tpd early in 2019. Cash cost per CuEq Lb was $1.68 and AISC $2.35 per CuEq Lb at Bolivar, while at Cusi cash cost was $14.11 per AgEq Oz and AISC $19.08 per AgEq Oz. Surface drilling at Bolivar was 8,332 m, while 2,176 m were drilled from the underground mine. At Cusi, 6,569 m were drilled from the surface.
  • Mag Silver Corp. released its Q3 2018 financial results. At Juanicipio, in Zacatecas, over 16 km of underground development have been achieved, 32% of which was realized on the last nine months. Mag advanced $8.47 M to Minera Juanicipio to fund its 44% share of ongoing development. Fresnillo has reiterated production is to start by mid-2020. Exploration during the quarter completed 48 holes, for 46,060 m of drilling focused to convert inferred resources to indicated, and to trace the Deep Zone laterally and to depth. The company ended the period with cash and cash equivalents of $141.8 M.
  • Leagold Mining Corp. reported 2018 third quarter operating and financial results. At Los Filos in Guerrero, production totaled 42,617 Oz at AISC of $1,060 per AuOz by mining 7.4 M tonnes from the open pit at a grade of 0.65 g/t Au, and 172 K tonnes @ 6.26 g/t Au.
  • Starcore International Mines Ltd. reported production results for its second quarter of fiscal 2019 at its San Martin mine in Queretaro. During the quarter (ended October 31st), 81.4 K tonnes were milled @ 1.4 g/t Au, 43.5 g/t Ag, recovering 86.9% Au, 58.7% Ag, to produce 4,050 AuEq Oz. The Altiplano processing facility was put on maintenance and the sale of the asset is being considered.
  • Telson Mining Corp. announced its intention to retain Glencore Technology to test its patented metallurgical approach to increase zinc recoveries and zinc concentrate grade at its Campo Morado mine in Guerrero.

ON FINANCING

  • No Relevant News.

ON RESOURCES AND DEVELOPMENT

  • Odyssey Marine Exploration Inc. commented on its Q3 2018 report that a plea has been presented at the Tribunal Federal de Justicia Administrativa to oblige SEMERANAT (the Mexican environmental agency) to produce the requested environmental permit on the Don Diego offshore phosphate project in Baja California Sur.
  • Minera Alamos Inc. reported that mapping and surface sampling on the new Divisadero porphyry discovery at its Santana project, in Sonora. The work delineated a 200 x 300 m surface expression (still open) of the 95.7 m @ 0.85 g/t Au, 9.8 g/t Ag, 0.33% Cu drill intercept of porphyry style mineralization of a previous press release. Over 50% of 66 rock samples collected assayed between 0.1 and 2.2 g/t Au, with mineralization appearing to remain open under thin soil cover to the north and south. The Divisadero zone is 200 m north of the Nicho Norte breccia pipe.
  • Leagold Mining Corp. announced a significant increase in open pit mineral reserves at its Los Filos mine in Guerrero. Proven and probable reserves grew 122% compared with the 351 K Oz Au of December 2017, to reach 780 K Oz Au, contained in 40.5 M tonnes @ 0.60 g/t Au.

ON DEALS AND CORPORATE ISSUES

  • Goldplay Exploration Ltd. congratulated “its director, Ms. Laura Cristina Diaz Nieves, on her appointment as the next General Director of Mines in Mexico. As a result of this appointment, Ms. Diaz Nieves is required to relinquish her position as director of the Company at the end of this month” (San Marcial, Sinaloa).
  • Pan American Silver Corp. and Tahoe Resources Inc. entered into a definitive agreement for Pan American to acquire all of the outstanding shares of Tahoe, creating the world’s premier silver mining company. “Tahoe shareholders may elect to receive US$3.40 in cash or 0.2403 Pan American shares for each Tahoe share, subject in each case to pro-ration based on a maximum cash consideration of US$275 million and a maximum number of Pan American shares issued of 56.0 million, totaling US$1,067 million (the “Base Purchase Price”). The Base Purchase Price represents a premium of 34.9% to Tahoe’s volume weighted average price (“VWAP”) for the 20-day period ending on November 13, 2018……. At closing, existing Pan American and Tahoe shareholders will own approximately 73% and 27% of Pan American, respectively” (La Colorada, Zacatecas; El Escobal, Guatemala).
  • Golden Minerals Co. announced the acquisition of the 521 hectares, covered by six concessions, Navegantes property in Chihuahua. Golden holds an option to purchase six concessions totaling 521 hectares by paying $0.4M over three years.

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

On the image above, magnetic biotite book from a porphyritic intrusive rock, attached to a field magnet in Jalisco. Picture by Jorge Cirett.

Highlights on the Second Week of November, 2018. Mining and Exploration News in Mexico

Banded quartz texture

By Miguel A Heredia

During the 45th week of the year (November 5th to November 11th, 2018), at least 36 press releases were announced by companies working in Mexico, with thirteen communicating mining activities, seven disclosing deals and corporate issues, seven informing on exploration results, six announcing financing issues, and 3 reporting on advances on their properties. ON MEXICO ISSUES, no relevant news.  ON EXPLORATION, In Sonora, Aloro commenced the road construction and building of drill pads on its Los Venados project, San Marco Resources announced the commencement of a drilling program at its Chunibas project, Sonoro reported drill results from its Cerro Caliche project, and Minaurum discovered two new vein zones at its Alamos Silver project. In Coahuila, Discovery Metals completed a 40 line-km ground magnetometer survey at its Monclova project.  ON MINING, Alio Gold, Americas Silver, Argonaut, Avino, Consolidated Zinc, First Majestic, Fortuna Silver, Hecla, Pan American Silver, Premier Gold, Santacruz Mining, and US Antimony reported production results from their Mexican operations. ON FINANCING, Auxico Gold closed a non-brokered private placement for $315K. GoGold closed the US$12M sale of the Santa Gertrudis royalty with Metalla Royalty and Streaming Ltd. Impact Silver announced a non-brokered private placement to raise up to $1.5M. Telson Mining received $5M from Trafigura Mexico for the second tranche of the loan agreement announced on December 18, 2017. Silver Spruce consolidated its common shares and proposed to complete a non-brokered private placement to raise up to $1.5M. Golden Minerals reported its Q3 2018 financial results. ON RESOURCES AND DEVELOPMENT, Kootenay designed a drilling program aimed to expand resources at its la Cigarra deposit in Chihuahua. Hecla released in-fill drilling results for its San Sebastian mine in Durango. ON DEALS AND CORPORATE ISSUES, Capstone Mining made reductions to its organizational structure (Cozamin mine, Zacatecas). Defiance Silver and ValOro Resources signed a definitive merger agreement (San Acacio project, Zacatecas). Golden Goliath announced that Desarrollos Mineros El Aguila (subsidiary of Fresnillo plc) exercised the option agreement on its Uruachic project in Chihuahua. New Gold (Cerro San Pedro mine, San Luis Potosi) and Prize Mining (Manto Negro project, Coahuila) appointed their Chief Financial Officer respectively. Golden Reign and Marlin Gold completed business combination to form Mako Mining Corp (La Trinidad mine, Sinaloa).

ON MEXICO ISSUES

No relevant news.

ON EXPLORATION

  • Aloro Mining Corp., commenced a 3.6km road construction and building of 12 permitted drill pads at its Los Venados project in Sonora. “The road construction will open up new exposures for sampling in mineralized areas and structure that were previously undercover”.
  • San Marco Resources, commenced a drilling program at its Chunibas project in Sonora where they have a JV agreement with Antofagasta plc. The drilling program will consists of initial 1,500m comprised in six holes with the goal of testing down dip and along strike high-grade Cu-Ag mineralized mantos hosted in volcanic rocks in different stratigraphic levels. The manto-type mineralization has been identified along a corridor of 1.7km long and at least 300m wide.
  • Sonoro Metals Corp., reported results from the initial 13 drill holes from its Cerro Caliche project in Sonora. Significant intersections are: Hole SCR-002 with 27.43m of 0.6 g/t Au and 7 g/t Ag; Hole SCR-003 with 30.48m of 0.5 g/t Au and 8 g/t Ag; Hole SCR-004 with 39.62m of 0.9 g/t Au and 9 g/t Ag, including 6.09m of 2.9 g/t Au and 20 g/t Ag; Hole SCR-005 with 10.67m of 0.7 g/t Au and 21 g/t Ag, and 10.67m of 0.6 g/t Au and 1 g/t Ag; Hole SCR-006 with 10.67m of 1.2 g/t Au and 21 g/t Ag, including 6.1m of 2 g/t Au and 26 g/t Ag; Hole SCR-007 with 22.86m of 0.9 g/t Au and 13 g/t Ag, including 4.57m of 2.2 g/t Au and 20 g/t Ag; and SCR-008 with 36.58m of 0.5 g/t Au and 4 g/t Ag. “The drilling has further confirmed that mineralization in the Los Japoneses zone remains open in all directions, including at depth.”
  • Minaurum Gold Inc., discovered two new vein zones at its Alamos Silver project in Sonora: the San Jose vein, a NNE trend structure hosted in a fault zone which can be traced for at least 3km long, and the Santa Rosa vein, a stringer-quartz veinlets structural zone that runs for at least 300m along strike. The discovery of the new veins was through its ongoing district-scale reconnaissance program. Sampling on the San Jose vein returned grades ranging from anomalous up to 1,995 g/t Ag, 2.5% Cu, and 1.9% Zn, while sampling on the Santa Rosa vein only retuned anomalous values.
  • Discovery Metals Corp., completed a 40 line-km ground magnetic survey at its Monclova project in Coahuila to cover three targets: Real Viejo with 23 lines spaced 50m apart, Corrales with 17 lines spaced 100m apart, and Soledad with 12 lines spaced 50m apart. “Results of the Real Viejo survey highlight a linear magnetic high parallel to the mapped mineralized and altered zone along the southern boundary of the Monclova intrusive complex centered on the Project. This suggests continuity of the alteration and/or mineralization along the contact and provides support for the holes planned to test this zone. Interestingly, similar magnetic high zones occur across the neighboring Corrales target. Both linear magnetic highs as well as linear lows are highlighted by the survey and represent prospective targets on the Project. Results at the northern Soledad grid also highlight similar geometries”.

ON MINING

  • Alio Gold Inc., reported Q3 production results from its San Francisco mine in Sonora. Alio produced 11.6K Oz Au and 3.9K Oz Ag at an AISC of $1,315 per Oz produced.
  • Americas Silver Corporation, produced 323K Oz Ag, 7.5M Lb Pb, and 7.9M Lb Zn during the Q3-2018 from its Cosala operations in Sinaloa and Galena Complex in Idaho.
  • Argonaut Gold Inc., announced Q3 2018 production results from their Mexican operations. At the El Castillo mine in Durango, Argonaut mined 2, 267,000 tonnes of 0.33 g/t Au, to produce 10.3K Oz Au and 4.8K Oz Ag (10.4K GEOs or Gold Eq Oz). At the San Agustin mine in Durango, the company mined 1, 747,000 tonnes of 0.34 g/t Au to produce 15.7K Oz Au and 52.9K Oz Ag (16.5K GEOs). At its La Colorada mine in Sonora, Argonaut mined 1.2M tonnes of 0.33 g/t Au to produce 7K Oz Au and 16.2K Oz Ag (7.3K GEOs).
  • Avino Silver & Gold Mines Ltd., milled 193, 645 tonnes during Q3 2018 to produce 2.2K Oz Au, 342K Oz Ag, and 992K Lb Cu (704.4K Oz Ag Eq) at an AISC of $11.15 per payable Oz Ag Eq.
  • Consolidated Zinc Limited, reported the October 2018 production from its Plomosas mine in Chihuahua. The company milled 237 tonnes of 12.9% Zn and 3.3 % Pb to produce 68.3K Lb Zn and 17.6K Lb Pb.
  • First Majestic Silver Corporation, released Q3 2018 production results from their Mexican operations. The table below shows the quarterly operating and cost parameters at each of the mining operations:

  • Fortuna Silver Mines Ltd., milled 262, 710 tonnes during Q3 2018 at grades of 1.6 g/t Au and 258 g/t Ag to produce 12.4K Oz Au and 1.99M Oz Ag, with metallurgical recoveries of 91% for Au and Ag.
  • Hecla Mining Company, released Q3 production results from its San Sebastian mine in Durango. During Q3 2018, Hecla produced 3.7K Oz Au and 522K Oz Ag.
  • Pan American Silver Corp, reported Q3 2018 production results from each of their mining operations. At La Colorada, Zacatecas the company produced 1.1K Oz Au and 2M Oz Ag. At its Dolores mine in Chihuahua, Pan American Silver produced 33.1K Oz Au and 1M Oz Ag.
  • Premier Gold Mines Limited, announced Q3 2018 production results from its Mercedes mine in Sonora. The company processed 159,608 tonnes of 3.52 g/t Au and 39 g/t Ag with metallurgical recoveries of 96.6% and 43.7% respectively, to produce 17.5K Oz Au and 88.4K Oz Ag at an AISC of $1,059 per Oz produced.
  • Santacruz Silver Mining , released Q3 2018 production results from their Mexican mining operations.  At Veta Grande, Zacatecas, the company processed 42,011 tonnes with 0.26 g/t Au, 77 g/t Ag,  0.8% Pb and 1.94 % Zn to produce  140 Oz Au, 62.2K Oz Ag, 590.8K Lb Pb and 952.4K Lb Zn. At El Rosario, San Luis Potosi, Santacruz processed 15,965 tonnes of 0.26 g/t Au, 0.2% Pb and 1.6% Zn to produce 85 Oz Au, 18.4K Oz Ag, 72.7K Lb Pb, and 467.4 Lb Zn.
  • Torex Gold Resources Inc., processed 1,246,000 tonnes with 2.6 g/t Au during Q3 2018 from its El Limon-Guajes Mine Complex in Guerrero. The quarterly production was 100.4K Oz Au with a metallurgical recovery of 89%.
  • US Antimony Corporation, released its September and October 2018 production results. In September, US Antimony produced 141.2 K Lb Sb and 1,394 tonnes of zeolites, while in October produced 123.5 Lb Sb and 1,065 tonnes of zeolites.

ON FINANCING

  • Auxico Resources Canada Inc., closed a non-brokered private placement for gross proceeds of $315K (Zamora project, Sinaloa).
  • GoGold Resources Inc., closed the US$12M sale of its Santa Gertrudis royalty with Metalla Royalty and Streaming Ltd. GoGold took US$6M of the US$12M sale price in common shares of Metalla, which represent 9.9% of the Metalla shares outstanding.
  • Impact Silver Corp., announced a non-brokered private placement to raise up to $1.5M to explore its Zacualpan project in Mexico State for additional high potential precious metals as well as Au-Cu targets.
  • Telson Mining Corporation, received $5M from Trafigura Mexico S.A. de C.V., for the second tranche of the loan agreement for the construction of its 1,000 tpd Tahuehueto mine in Durango.
  • Silver Spruce Resources Inc., consolidated its common shares and proposed to complete a non-brokered private placement to raise up to $1.5M. The consolidation of its common shares is one new share for five old shares.
  • Golden Minerals Company, reported revenue of approximately $1.9M in Q3 2018 related to the oxide plant lease and costs of approximately $0.7M related to the services Golden provides under the terms of the lease, for a net margin of $1.2M. Other operating income of $3.2 million included $3.0 million from the sale of Golden’s remaining interest in the Celaya project in Guanajuato to The Electrum Group LLC, as well as pro‐rated income from the farm‐out of the Company’s Zacatecas properties to Santacruz Silver. Exploration expenses were $1.1 million in the third quarter, reflecting increased exploration and project evaluation activities at the Santa Maria project in Chihuahua as well as other projects in Mexico.

 

ON RESOURCES AND DEVELOPMENT

  • Kootenay Silver Inc., designed a program of 15,000m of drilling over 62 holes aimed to expand resources along the extensions of its La Cigarra deposit in Chihuahua. The drilling program will be conducted on four target areas where the company believes there is untested potential to increase resources. “The plan would entail primarily exploration step out drilling of known mineralization and some infill drilling of the successful La Borracha program earlier this year”. “The four areas Kootenay plans to target are the La Borracha high grade (the mineralized trend located 1,000 meters northwest from the northern boundary of the Resource), the La Borracha Connection (connecting La Borracha with the San Gregorio area of the Resource), Gap (a very under drilled area between the main San Gregorio and Las Carolinas zones that currently comprise the Resource) and the Carolinas Extension (the strike extension of the Resource to the southeast)”.
  • Hecla Mining Company, released in-fill drilling results for its San Sebastian mine in Durango. The in-fill drilling was conducted in the central portion of the polymetallic zone along the Francine Vein. Additionally, exploration core drilling was also conducted toward shallower oxide mineralization along the West and East Francine vein areas, the recently discovered South Vein, and at the Esperanza Vein target area. At the Francine vein, the in-fill drilling program intersected high grade mineralization. Highlights include 1.37m of 591 g/t Ag, 4.8% Cu, 16% Pb and 13.5% Zn and 2.25m of 227 g/t Ag, 1.8% Cu, 3.5% Pb, and 6% Zn. The drilling also intercepted narrow but high-grade mineralization along the East Francine vein on new zones of vein-hosted oxide mineralization. Significant intersections are 1.46m of 485 g/t Ag and 0.3 g/t Au, and 2.83m of 299 g/t Ag and 2.2 g/t Au. Mineralization in this area is defined over 1,200 feet along strike and 800 feet down-dip and this new zone could represent an important new source of oxide mineralization. At the West Francine vein, the drilling program encountered also narrow intervals of high grade. Highlights include 0.64m of 1,791 g/t Ag and 0.62 g/t Au. Mineralization in this area is open laterally and at depth. Follow-up, offset drilling is in progress. At the Esperanza vein, exploration drilling commenced but results are pending. Reconnaissance RC drilling discovered a new blind vein under soil cover in the Saladillo Valley. This new vein, referred as the South vein, intercepted significant mineralized intervals such as 2.83m of 392 g/t Ag and 2.5 g/t Au, 2.86m of 187 g/t Ag and 0.93 g/t Au, and 2.86m of 174 g/t Ag and 1.24 g/t Au. Drilling for the remainder of the year will continue to focus on expanding resources and evaluate near-surface oxide mineralization at the West Francine Vein, South Vein, and Esperanza Vein areas.

ON DEALS AND CORPORATE ISSUES

  • Capstone Mining Corp., announced management changes and made reduction of its organizational structure to improve financial and operating performance and save approximately $5M per year in corporate general and administrative expenses (Cozamin mine, Zacatecas).
  • Defiance Silver Corp., and ValOro Resources Inc., signed a definitive merger agreement dated on November 5, 2018. The ValOro shareholders will receive 0.71 common shares of Defiance for each share of ValOro held. “Upon completion of the Transaction, the combined company will have approximately 119 million common shares outstanding, of which former shareholders of Defiance will own approximately 87% and the former shareholders of ValOro will own approximately 13%” (San Acacio project, Zacatecas).
  • Golden Goliath Resources Ltd., announced that Desarrollos Mineros El Aguila S.A. de C.V., a wholly subsidiary of Fresnillo plc, exercised the option agreement on its Uruachic project in Chihuahua by making a final payment of US$2.3M. Golden Goliath still holds a royalty on the several optioned properties in the Uruachic mining district.
  • Golden Reign Resources and Marlin Gold Mining Ltd., completed business combination to form Mako Mining Corp. Prior to the closing of the arrangement, the companies completed the amendment to the Gold Purchase Agreement with Sailfish Royalty Corp., and the Marlin reorganization.

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, banded quartz texture in a hot spring epithermal system in Durango, Mexico.  Photo by Miguel A Heredia.

Highlights on the First Week of November, 2018. Mining and Exploration News in Mexico

IMG_4536 - copia

By Jorge Cirett

During the 44th week of the year (October 29th to November 4th, 2018), at least 26 press releases were announced by companies working in Mexico. Prize Mining, Southern Silver, Kootenay, Excellon, Colibri, Golden Minerals and Galore released advances in exploration. Consolidated Zinc and Telson released news on mining, while Endeavour, Excellon and  Great Panther reported Q3 financial results. Aloro Mining and Sonoro Metals reported news related to financing. Goldplay and SilverCrest reported on advances on its properties, while Silver Bull presented an updated resource base. Marlin Gold and Golden Reign advance on their acquisition agreement and Colibri entered into a purchase agreement with Yaque Minerals. Golden Minerals is acquiring the Yoquivo property in Chihuahua. ON MEXICO ISSUES, CAMIMEX presented figures on the state of the mining industry in Mexico. ON EXPLORATION, In Sonora, Colibri described its El Mezquite and Jackie projects. In Chihuahua Golden Minerals released high-grade results from its Yoquivo project, and Kootenay presented interesting results from early exploration on its Mecatona project. In Coahuila, Prize Mining is doing regional exploration on its Manto Negro project. In Durango, Southern Silver presented significant results from drilling on its CLM West claim group. In Zacatecas, Galore has received permit to drill on its El Alamo claim. ON FINANCING, Sonoro has completed a private placement for $500 K. Aloro Mining completed its placement for gross proceeds of C$800 K. ON RESOURCES AND DEVELOPMENT, Goldplay reported results from sampling historical core at its San Marcial project in Sinaloa. Silver Bull presented an updated resource on its Sierra Mojada project in Coahuila. SilverCrest presented high-grade results from infill drilling at its Las Chispas project in Sonora. A PEA is to be completed for a 1,000 to 1,500 tonne/day underground operation. ON DEALS AND CORPORATE ISSUES, Golden Reign, Marlin Gold and Sailfish Royalties continue to advance its purchase agreement. Colibri Resource is to acquire Yaque Minerals S.A. de C.V. owned by OnTop Capital. Golden Minerals holds an option to acquire the Yoquivo property in Chihuahua.

ON MEXICO ISSUES

  • In AIMMGM’s past conference in October, Fernando Alanis from CAMIMEX (Cámara Minera de México) presented figures from the mining industry in Mexico. Mineral royalties collected US$220 M in 2017, adding up to US$631 M on the last four years. An additional US$248 M were invested by companies in the communities and environment where they are located. Just in mining duties over concessions amounted to US$132.9 M. In the attractiveness index for investment, Mexico has gone from the 11th place in 2011 to the 44th place in 2018. At the same time our direct competitors for investment in the mining industry are doing better, Peru passed from the 39th to the 19th position, and Chile from the 6th to the 8th position. Points suggested to make of Mexico a mining country include improvements in security, a better infrastructure (railways, ports), certainty on land rights, a common ground with other mining countries in fiscal terms, administrative efficiency in the application and issuing of mining concession titles and certainty and transparency in the timely granting of permits.

ON EXPLORATION

  • Prize Mining Corp. engaged a consultant to compile a GIS database for a regional exploration program on its 17,659 ha Manto Negro project in Coahuila. The 3,000 m drill program continues with its focus on the Granizo and Pilar Grande areas.
  • Southern Silver Exploration Corp. reported drill results from its CLM West claim group, adjacent to its Cerro Las Minitas project in Durango. One of three holes intercepted 3.0 m @ 168 g/t Ag, while the other two returned strong (up to 0.1%) arsenic and antimony anomalies. “The mineralization represents the first significant silver intercept identified on the CLM West claim group where drilling is targeting new Ag-Au epithermal systems”.
  • Kootenay Silver Inc. staked 2,857 ha in Chihuahua, creating the Mecatona project. The Ag dominant epithermal system is hosted in veins and breccias, with one anomalous structure running for more than 1.7 km, and another zone hosting stockworks and quartz veinlets in an 80 m wide argillic alteration zone. Results from 78 samples collected at the property are as high as 735 g/t Ag, 6.94 g/t Au, 3.5% Pb, 8.0% Zn.
  • Excellon Resources Inc. received title to concessions that increases its land position to over 45,000 hectares on its consolidated “Evolución” property, within the Miguel Auza district in Durango, along strike to HECLA’s San Sebastian mine. As announced in previous press releases, initial drilling has already shown broad mineralized intersections with anomalous Au, Ag, Pb, Zn, “including discrete higher‐grade zones of carbonate veining, bladed calcite and silica with galena, sphalerite and pyrite”.
  • Colibri Resource Corp. described the El Mezquite and Jackie projects in Sonora, its new properties through the acquisition of Yaque Minerals S.A. de C.V. from On Top Capital Ltd. The 180 hectares Mezquite project contains an alteration zone 2 km by 1 km , within which are at least four zones of sulfide oxidation related to contacts with a silicified feldspar porphyry. Assay results from 321 rock chip samples returned 42 samples over 0.1 g/t Au, averaging 0.74 g/t Au and up to 3.41 g/t Au, 198 g/t Ag. The 1,130 ha Jackie project is 2 km south of El Mezquite, and abuts to the east with the Santana project, owned by Minera Alamos.
  • Golden Minerals Co. released high-grade results from sampling at its Yoquivo project in Chihuahua. Highlighted results comprise 6 m @ 5.9 g/t Au, 937 g/t Ag; 6 m @ 1.7 g/t Au, 399 g/t Ag from the Pertenencia vein. 4 m @ 2.3 g/t Au, 489 g/t Ag from the Central breccia zone. 2.9 m @ 1.7 g/t Au, 345 g/t Ag from the San Francisco vein. To date 756 samples have been collected, identifying a series of low-sulfidation quartz veins and breccias. A regional exploration program was launched to search for additional veins.
  • Galore Resources Inc. has been granted permits to begin a 12-hole, 3,000 m diamond core drill program at its El Alamo claim in Zacatecas. El Alamo consists of Cretaceous sediments, mostly limestone with some siltstone and chert, and major faults bounding the project. Alteration and mineralization are represented by silicification and iron-oxide bodies after sulfides. Some of the higher grade gold values are associated with extensively iron-oxide jasperoid breccias. A shallow drill percussion camping collared 35 holes in 2012, and defined a 500 long by 200 wide target zone.

ON MINING

  • Consolidated Zinc Ltd. presented its September 2018 quarterly activities report. The Group entered a 12 month toll treatment and offtake purchase agreement with Grupo Mexico to treat its ore at the Santa Eulalia’s concentrator plant, with mining at the Plomosas mine in Chihuahua beginning on September 13th 2018. A detailed costing study (DCS) was completed and incorporated into a bankable feasibility study (BFS). “During the quarter the Mexican Environmental Authority (PROFEPA) provided the Company with an MIA Exception (EPA exception) for the mine and processing plant area”. Cash balance at the end of the period was $0.61 M.
  • Telson Mining Corp. reported concluding a renewable power purchase agreement for its Campo Morado mine in Guerrero. The ten-year agreement sets the price for consuming 42.00 GW per year at a price that is 32% lower than the last nine-month average price paid at the site.
  • Endeavour Silver Corp. reported third quarter 2018 financial results. During the period silver production (1.43 M Oz) increased 13% and gold (12,968 Oz) decreased by 5%, with a silver equivalent production of 2.4 M Oz, and the Terronera pre-feasibility study was completed with improved project economics. On the financial side a net loss of $5.5 M was recorded, with EBITDA decreasing 8% to $5.6 M, mine operating cash flow decreased 20% to $9.6 M, cash cost rose to $8.86 per Oz Ag (net of gold credits) and All-in sustaining cost fell to $16.14 per Oz Ag, with a working capital of $57.4 M, whilst $5.6 M were raised through ATM financing.
  • Excellon Resources Inc. reported financial results for the third quarter 2018. During the period 10,974 of ore were produced, 17,907 tonnes processed (ore and stockpile), grading 416 g/t Ag, 3.47% Pb, 4.33% Zn (for ore) and 151 g/t Ag,1.36% Pb, 1.45% Zn (stockpile), recovering 89.9% Ag, 74.2% Pb, 78.2% Zn to produce 171.2 K Oz Ag, 824 K Lb Pb, 1,005 K Lb Zn. Revenue was $2.6 M ($7.6 M a year earlier) for a gross loss of $3.5 M from operations, cash cost of $29.94 per Ag Oz and All-in sustaining cost of $44.02 per Ag Oz. Financial results were impacted by lower production, lower by-product prices and associated price adjustments. Management changes were made at the Platosa mine, and now production and development rates have increased.
  • Great Panther Silver Ltd. presented third quarter 2018 financial results. During the period 92.9 K tonnes were milled to produce 448.8 K Oz Ag, 4,737 Oz Au (adding to 1.023 M Oz AgEq) at cash cost $12.79 per Ag Oz ($13.59 per AgEq Ag Oz), all-in sustaining cost $19.74 ($16.56 per AgEq Oz). The revenue was $11.7 M, with a net loss of 3.642 M, EBITDA of $(3.679) and a networking capital at end of period of $57.9 M. Lower metal prices, lower production levels and a large concentrate load that could not be shipped before the end of the period impacted on the lower results.

ON FINANCING

  • Aloro Mining Corp. closed a non-brokered private placement for gross proceeds of C$800 K. Agnico Eagle, which owns 8.7% of Aloro shares, bought half the issued shares. (Los Venados, Sonora).
  • Sonoro Metals Corp. completed a non-brokered private placement, for gross proceeds of $500 K (Cerro Caliche, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Goldplay Exploration Ltd. reported results from sampling historical drill core from its San Marcial project in Sinaloa. These results are said to support the open pit potential for the historical NI-43-101 resource at the property. Highlighted results comprise 47.8 m (TW) @ 93 g/t AgEq (including 17.3 m @ 160 g/t AgEq); 42.0 m @ 61 g/t AgEq (including 24.8 m @ 79 g/t AgEq); 9.4 m @ 126 g/t AgEq.
  • Silver Bull Resources Inc. provided an updated NI43-101 resource report for the Sierra Mojada project in Coahuila. The open pit resource includes a high grade zinc zone of 13.5 M tonnes @ 11.2% Zn and a high grade silver zone with 15.2 M tonnes @ 114.9 g/t Ag. The total measured and indicated resources 70.4 M tonnes @ 38.6 g/t Ag, 3.4% Zn containing 5.354 billion pounds zinc and 87.4 M ounces silver.Sierra Mojada Resource table1
  • SilverCrest Metals Inc. is to complete a preliminary economic assessment (PEA) for Las Chispas project in Sonora. A 1,000 to 1,500 tonne per day underground mining operation is being considered, with a counter-current decantation facility and Merrill Crowe recovery circuit similar to the nearby Santa Elena and Mercedes mines. Cyanidation with a possible add-on flotation circuit followed by intense leaching is being evaluated for the higher-grade ore, to raise the 86% Ag, 98% Au recovery with standard cyanidation only. SilverCrest is proceeding with the construction of a 500 m long, 4.5 m wide, 4.0 m high decline, and drifting 600 to 800 m along the mineralized structure to collect information on vein grade, width continuity, grade reconciliation, mineability and bulk sampling.
  • SilverCrest Metals Inc. reported the best drill intercept to date for its Las Chispas project in Sonora. Results from 7 drill holes from the in-fill program were released, with highlighted intervals (TW) comprising 9.9 m @ 14.4 g/t Au, 2,132 g/t Ag (this is the best intercept to date, including 4.5 m @ 30.3 g/t Au, 4,498 g/t Ag); 3.8 m @ 6.78 g/t Au, 1,090 g/t Ag; 3.5 m @ 33.06 g/t Au, 2,092 g/t Ag; 11.1 m @ 3.99 g/t Au, 580 g/t Ag; 5.1 m @ 4.16 g/t Au, 197 g/t Ag; The weighted average for the five holes on the Area 51 is 6.0 m @ 11.41 g/t Au, 1,369 g/t Ag. A total of 351 holes have been collared, for 94,735 m of core, with 119 drill intercepts grading more than 1,000 g/t AgEq.

ON DEALS AND CORPORATE ISSUES

  • Sailfish Royalty Corp. announced its shareholders voted in favor of the restructuring of the company’s gold stream on the San Albino project. The stream restructuring is a condition to the closing of the transaction in which Golden Reign Resources Ltd. will acquire all issued shares of Marlin Gold Mining Ltd. (Trinidad, Sinaloa).
  • Marlin Gold Mining Ltd. shareholders voted in favour of a special resolution to approve the plan of arrangement and certain connected transactions, pursuant to which Golden Reign Resources Ltd. (“Golden Reign”) will acquire all of the issued and outstanding shares of Marlin (Trinidad, Sinaloa).
  • Golden Reign Resources Ltd. and Marlin Gold Mining Ltd. have been granted the final court order from the Supreme Court of British Columbia approving the plan of arrangement pursuant to which Golden Reign will acquire all of the issued and outstanding common shares of Marlin (Trinidad, Sinaloa).
  • Colibri Resource Corp. entered into a share purchase agreement with OnTop Capital Ltd. to purchase all issued and outstanding shares of Yaque Minerals S. A. de C.V., a wholly owned subsidiary of OnTop. Yaque assets consist of El Mezquite and Jackie mineral exploration properties close to the Santana project owned by Minera Alamos in Sonora. “As consideration for the Transaction, Colibri has agreed to issue a convertible debenture in the amount of $1 million CDN bearing an annual interest rate of 2.5% which is convertible at any time, in whole or in part, over the next 5 years into common shares of Colibri at $0.20 per share for a total of up to 5 million shares”.
  • Golden Minerals Co. holds an option to purchase the six concessions that comprise the 2,367 hectares Yoquivo property in Chihuahua, for payments totaling $0.5 M over four years and subject to a 2% NSR royalty.

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

On the image above, intermediate composition dike with chilled margins intruding andesitic volcanic rocks in Jalisco. Picture by Jorge Cirett.

Highlights on the Fourth Week of October, 2018. Mining and Exploration News in Mexico

Stibiconite-Cervantite crystals

By Miguel A Heredia

During the 43th week of the year (October 22th to October 28th, 2018), at least 29 press releases were announced by companies working in Mexico, with seven communicating mining activities, seven reporting on resources and developments, five disclosing deals and corporate issues,  five announcing financing issues, and four informing on exploration results. ON MEXICO ISSUES, the 13th International Mining Congress Sonora 2018 was held in the city of Hermosillo, Sonora on October 23-26. ON EXPLORATION, In Sonora, Minera Alamos and Minaurum reported exploration results from theirs Santana and Alamos Silver projects respectively. In Chihuahua, Harvest Gold provided an update of the drilling program on its Cerro Cascaron project. In Zacatecas, Santacruz provided drill results from its Veta Grande project. ON MINING, Agnico, Excellon, Fresnillo, GoGold, Goldcorp, Hecla and New Gold reported Q3 2018 results from their Mexican operations. ON FINANCING, Consolidated Zinc raised $1.3M from its share purchase plan, and proposed to raise further $220K. Auxico announced that its common shares are already trading on the NEX Exchange Growth Market. Mexican Gold announced its intention to complete a non-brokered private placement of up to $3M.  Oroco Resource increased its previous private placement to rise now up to $750K. Gold Resource declared monthly dividend to shareholders. ON RESOURCES AND DEVELOPMENT, Almaden reported infill drilling results within the PFS pit from its Ixtaca project in Puebla. Goldcorp announced proven and probable mineral reserves for its Peñasquito mine in Zacatecas. Mexican Gold announced plans to update resources for its Las Minas project in Veracruz. Premier Gold commenced an underground drilling program at its Marianas/Mercedes mine in Sonora.  Pan American Silver discovered wide mineralized zones at its La Colorada mine in Zacatecas. Torex reported infill drilling results for its Media Luna project in Guerrero. Azure released drill results from its Oposura project in Sonora. ON DEALS AND CORPORATE ISSUES, Canasil signed a letter of intent providing for Pan American Silver to acquire Canasil´s interest in the Sandra-Escobar project in Durango. Prize Mining retained Link Media to provide communications and market awareness services (Manto Negro, Coahuila). Metalla provided an update on the royalty acquisition of the Santa Gertrudis project in Sonora from GoGold. New Gold announced management changes (Cerro San Pedro, San Luis Potosi). Odyssey provided an update on legal filing for its Don Diego phosphate project in Baja California Sur.

ON MEXICO ISSUES

  • The 13th International Mining Congress Sonora 2018, was held in Hermosillo, Sonora on October 23-26. Sonora is the top state for mining in all Mexico.

 ON EXPLORATION

  • Minera Alamos Inc., reported drill results of a new broad zone of Au-Ag mineralization from its Santana project in Sonora. Hole S18-121 intersected 95.7m of 0.85 g/t Au, 10 g/t Ag, and 0.33% Cu (1.47 g/t Au Eq), including 70m of 1.1 g/t Au, 12 g/t Ag, and 0.56% Cu (1.88 g/t Au Eq). “The hole is the first drilled deep enough to intersect this new style of polymetallic mineralization that is associated with an andesite porphyry unit related to disseminated pyrite and intrusive breccias. Based on surface exposures and known geology the mineralized system appears to be open to expansion in all directions”.
  • Minaurum Gold Inc., released sampling results from the newly discovered Europa Sur Vein extension at its Alamo Silver project in Sonora. Significant results are 0.33 g/t Au, 1,205 g/t Ag, 1.9% Pb, 1.4% Zn, and 3.2 % Cu; 0.8m of 479 g/t Ag, 0.3% Pb, 0.5% Zn, and 3.19% Cu, and 2m of 0.15 g/t Au, 179 g/t Ag, 1.9% Pb, 1.3% Zn, and 2.51% Cu. “With this newly discovered extension, the Europa-Guadalupe vein now measures 2.5 km in strike length and further expands the scope of Minaurum’s exploration program to find extensions of all other currently identified veins”.
  • Harvest Gold Corporation, provided an update of the ongoing drilling program on its Cerro Cascaron Au-Ag project in Chihuahua. At Cascarita Silver target the drilling program is ongoing and currently focused on completing 600m in three holes. Once this target is drill tested, the crew will move to the Cascaron Vein Gold Field to drill three holes to test 900m of strike along the Serpiente Dorada and Julieta structures, and one hole to test beneath a high-grade Au-Ag surface samples across the Carabina vein.
  • Santacruz Silver Mining Ltd., announced drilling results from its Veta Grande project in Zacatecas and expanded the high-grade footprint. Highlights results are in Hole NA 18-006 with 2.15m (TW 1.95m) of 0.17 g/t Au, 669 g/t Ag, and 0.12% Cu, including 0.9m (TW 0.82m) of 29 g/t Au, 1,220 g/t Ag, and 0.12% Cu;

ON MINING

  • Agnico Eagle Mines Ltd., released Q3 2018 production results from its Mexican Operations. At Pinos Altos, Chihuahua, Agnico processed 508,000 tonnes of 2.96 g/t Au to produce 46.4K Oz Au. At Creston Mascota, Chihuahua, the company processed 309,000 tonnes of 0.84 g/t Au to produce 8K Oz Au. At La India, Sonora, Agnico processed 1,426,000 tonnes of 0.79 g/t Au to produce 27K Oz Au.
  • Excellon Resources Inc., reported Q3 2018 production results from its La Platosa mine in Durango. In this period, Excellon milled 17,907 tonnes of 416 g/t Ag, 3.5% Pb, and 4.3% Zn to produce 171.2K Oz Ag, 0.8M Lb Pb, and 1M Lb Zn with metallurgical recoveries of 89.9%, 74.2%, and 78.2% respectively.
  • Fresnillo plc., announced Q3 2018 production results from their Mexican operations. At Fresnillo mine, Zacatecas, the company processed 613,794 tonnes of 0.68% Au, 211 g/t Ag, 0.9% Pb, and 1.8% Zn to produce 10.5K Oz Au, 3.7M Oz Ag, 11M Lb Pb, and 18.1M Lb Zn. At Saucito mine, Zacatecas, 713,441 tonnes were processed at grades of 1.34 g/t Au, 250 g/t Ag, 0.9% Pb, and 1.6% Zn to produce 23.6K Oz Au, 4.9M Oz Ag, 12.9M Lb Pb, and 17.7M Lb Zn. At the Pyrites Plant, Fresnillo processed 63,336 tonnes of 2.9g /t Au and 423 g/t Ag to produce 1.4K Oz Au and 423K Oz Ag. At La Cienega mine, Durango, the company processed 332,493 tonnes of 1.79 g/t Au, 169 g/t Ag, 0.6% Pb, and 0.9% Zn to produce 18.2K Oz Au, 1.54M Oz Ag, 2.47M Lb Pb, and 4.2M Lb Zn. At San Julian mine, Chihuahua, 332,836 tonnes were processed from the vein system with grades of 1.84 g/t Au and 137 g/t Ag to produce 18.5K Oz Au and 1.35M Oz Ag while 561,808 tonnes were processed from San Julian JM disseminated ore body with grades of 0.11 g/t Au, 156 g/t Ag, 0.4% Pb, and 1.3% Zn to produce 9994 Oz Au, 2.3M Oz Ag, 2.8M Lb Pb, and 11.3M Lb Zn. At Herradura mine, Sonora, 5,859,579 tonnes were processed with grades of 0.76 g/t Au and 3 g/t Ag to produce 109.6 Oz Au and 492K Oz Ag. At Noche Buena mine, Sonora, Fresnillo processed 4,834,512 tonnes of 0.52 g/t Au to produce 42.5K Oz Au.
  • GoGold Resources Inc., presented Q3 2018 production results from its Parral tailings operation in Chihuahua. GoGold produced 105.6K Oz Ag and 1,665 Oz Au.
  • Goldcorp Inc., produced a total of 503K Oz Au during Q3 2018 from their mine operations. Goldcorp did not present separate production results by mines.
  • Hecla Mining Company, produced in Q3 2018 over 3.7K Oz Au and 0.5M Oz Ag from its San Sebastian mine in Durango.
  • New Gold Inc., reported Q3 2018 production results from its Cerro San Pedro operation in San Luis Potosi. New Gold produced 2K Oz Au and 0.1M Oz Ag from residual leaching.

ON FINANCING

  •  Consolidated Zinc Limited, closed its share purchase plan on October 22, 2018, raising a total of $1.3M. The company also proposed to conduct a placement to raise a further $220K (Plomosas mine, Chihuahua).
  • Auxico Resources Canada Inc., announced that its common shares are already trading on the NEX Exchange Growth Market in London. (Zamora Mining District, Sinaloa).
  • Mexican Gold Corp., notified its intention to complete a non-brokered private placement of up to $3M, the same that could be increased by up to 25% for aggregate gross proceeds of up to $3.75M. (Las Minas, Veracruz).
  • Oroco Resource Corp., announced that it has increased its previous private placement to raise net gross proceeds of up to $750K (Santo Tomas, Sinaloa).
  • Gold Resource Corporation, declared monthly dividend of 1/6 of a cent for common share to shareholders (El Aguila mine, Oaxaca).

 

ON RESOURCES AND DEVELOPMENT

  • Almaden Minerals Ltd., reported infill drilling results from its Ixtaca project in Puebla. The results are part of the PFS filed work program within the resource and mine plan area. Significant intersections are in Hole TU-18-543 with 127.40m of 1.15 g/t Au and 18 g/t Ag, including 34.50m of 2.08 g/t Au and 47 g/t Ag; Hole TU-18-544 with 145.50m of 1.83 g/t Au and 14 g/t Ag, including 40m of 4 g/t Au and 35 g/t Ag, including 5.10m of 11.6 g/t Au and 87 g/t Ag; Hole TU-18-548 with 139.08m of 1.58 g/t Au and 17 g/t Ag, including 60.58m of 2.75 g/t Au and 23 g/t Ag, including 28.50m of 4.33 g/t Au and 34 g/t Ag; and Hole TU-18-550 with 131.50m of 1.51 g/t Au and 49 g/t Ag, including 21m of 7.5 g/t Au and 57 g/t Ag, including 9.70m of 15.18 g/t Au and 104 g/t Ag, and including 11.50m of 1.07 g/t Au and 89 g/t Ag.
  • Goldcorp Inc., presented reserves and resource estimates as of June 30, 2018 for its Peñasquito mine in Zacatecas. Proven reserves are 376.43 M tonnes of 0.58 g/t Au, 35 g/t Ag, 0.3% Pb, and 0.8% Zn for a total of 6.97M Oz Au, 418.3M Oz Ag, 2,804M Lb Pb, and 6,314M Lb Zn. Probable reserves are 143.99M tonnes of 0.46 g/t Au, 24 g/t Ag, 0.3% Pb, and 0.5% Zn for a total of 2.15M Oz Au, 109.3M Oz Ag, 809.6M Lb Pb, and 1,680.3M Lb Zn. Proven + Probable reserves are 520.41M tonnes of 0.55 g/t Au, 32 g/t Ag, 0.3% Pb, and 0.7% Zn for a total of 9.1M Oz Au, 527.6M Oz Ag, 3,613.2M Lb Pb, and 7,994.5M Lb Zn. Measured resources are 94.03M tonnes of 0.25 g/t Au, 28 g/t Ag, 0.3% Pb, and 0.6% Zn for a total of 0.76M Oz Au, 85.6M Oz Ag, 579.6M Lb Pb, and 1,161.2M Lb Zn. Indicated resources are 104.77M tonnes of 0.24 g/t Au, 12 g/t Ag, 0.3% Pb, and 0.5% Zn for a total of 0.81M Oz Au, 76.7M Oz Ag, 610M Lb Pb, and 1,044.2M Lb Zn. Measured + Indicated resources are 198.8M tonnes of 0.25 g/t Au, 25 g/t Ag, 0.3% Pb, and 0.5% Zn for a total content of 1.57M Oz Au, 162.3M Oz Ag, 1,189.6M Lb Pb, and 2,205.4M Lb Zn. In addition, inferred resources are 14.88m tonnes of 0.3 g/t Au, 13 g/t Ag, 0.2% Pb, and 0.6% Zn for a total of 0.14M Oz Au, 6.4M Oz Ag, 54.1M Lb Pb, and 206.6M Lb Zn (Mineral resources are exclusive of mineral reserves).
  • Mexican Gold Corp., announced plans to update mineral resources for its Las Minas project in Veracruz. It also announced plans to conduct 3,000m of drilling to update and expand its open pit modeled mineral resource at the El Dorado/Juan Bran and Santa Cruz zones.
  • Premier Gold Mines Limited, commenced an underground drilling program at its Marianas/Mercedes mine in Sonora, where previous drill results suggest to have the potential to contain economic mineralization of higher than the current reserve grades. The goal is to convert the Marianas mineral resources to mineral reserves. If the results are positive, mining at Marianas could begin in H2 2019.
  • Pan American Silver Corp, discovered wide mineralized zones in limestone replacement mantos and thick intercepts of skarn below the current production levels at its la Colorada mine in Zacatecas. Drill highlights are in Hole U-39-18 with 223m of 69 g/t Ag, 1.9%Pb, and 3.4% Zn, including 32m of 227 g/t Ag; Hole U-30-18 with 71.6m of 54 g/t Ag, 2% Pb, and 5% Zn; Hole U-28-18 with 60.3m of 76 g/t Ag, 4.3% Pb, and 3.7% Zn; Hole U-32-18 with 46.3m of 54 g/t Ag, 2.3% Pb, and 4.4% Zn; Hole U-26-18 with 42.6m of 42 g/t Ag, 2.8% Pb, and 7% Zn, and other interval of 42m of 52 g/t Ag, 1.8% Pb, and 3.9% Zn; and Hole U-29-18 with 7.4m of 80 g/t Ag, 5.3% Pb, and 13.6% Zn, and other interval of 23.4m of 54 g/t Ag, 2.3% Pb, and 8.2% Zn. “These are extraordinary exploration results for our La Colorada mine, indicating the potential to substantially expand mineral resources, mine life and ultimately production capacity,”
  • Torex Gold Resources Inc., reported infill drilling results for its Media Luna project in Guerrero. Highlights intercepts include Hole ML 18-222A with 39.15m of 5.24 g/t Au, 93 g/t Ag, and 2.27% Cu (10.54 g/t Au Eq); Hole ML 18-215 with 49.63m of 4.8 g/t Au, 36 g/t Ag, and 0.97% Cu (7.0 g/t Au Eq); Hole ML 18-219W with 45.9m of 3.44 g/t Au, 59 g/t Ag, and 1.64% Cu (7.1 g/t Au Eq); and Hole ML 18-208W with 22.62m of 3.33 g/t Au, 87 g/t Ag, and 2.12% Cu (8.27 g/t Au Eq) (Intersections are reported as true thickness).
  • Azure Minerals Limited, released drill results from its Oposura project in Sonora. Significant intersections in the middle of the Central Zone are in Hole OPDH-173 with 12.05m of 23 g/t Ag, 1.7% Pb and 6% Zn, including 4.1m of 43 g/t Ag, 2% Pb and 10.5% Zn; and Hole OPDH-178 with 9.50m of 22 g/t Ag, 3.7% Pb, and 15.1 % Zn, including 6.15m of 31 g/t Ag, 4.7% Pb, and 22% Zn. Significant intersections in the East Zone into the Central Zone are in Hole OPDH-159 with 5m of 14 g/t Ag, 4% Pb, and 5.2% Zn and 6.15m of 97 g/t Ag, 2.3% Pb, and 13.4% Zn; Hole OPDH-171 with 4.4m of 294 g/t Ag, 5.6% Pb, and 14.8% Zn, including 3.6m of 353 g/t Ag, 6.6% Pb, and 17.7% Zn; and Hole OPDH-177 with 4.55m of 138 g/t Ag, 6.1% Pb, and 30.8% Zn, including 3.4m of 177 g/t Ag, 8% Pb, and 40.1% Zn. “These latest, high-grade, massive sulphide drill intersections from the sparsely drilled Central Zone confirm that this area has the potential to significantly increase Oposura’s resource base”. “They continue to build on the very positive results from the Oposura Scoping Study and confirm potential to extend the mine life and further improve the already impressive project economics.”

ON DEALS AND CORPORATE ISSUES

  • Canasil Resources Inc., signed a letter of intent providing for Pan American Silver to acquire Canasil´s interest in the Sandra-Escobar project in Durango. The non-binding LOI is to enter in a definitive agreement for a payment of CAD $2.0M and 2% NSR. The NSR royalty can be reduced by Pan American Silver to 1% at any time by paying CAD $4.0M.
  • Prize Mining Corporation, retained Link Media to provide communications and market awareness services (Manto Negro, Coahuila).
  • Metalla Royalty & Streaming Ltd., announced that it is proceeding to close the acquisition of the 2% NSR on the Santa Gertrudis project in Sonora from GoGold Resources Inc.
  • New Gold Inc., announced management changes (Cerro San Pedro, San Luis Potosi).
  • Odyssey Marine Exploration Inc., filed an action before the Superior Section of the Mexican Federal Administrative Court due to the SEMARNAT´s recent refusal to issue the environmental permit for its San Diego phosphate project in Baja California Sur.

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, stibiconite-cervantite crystals in an epithermal system in Durango, Mexico.  Photo by Miguel A Heredia.

Highlights on the Third Week of October, 2018. Mining and Exploration News in Mexico

IMG_4463 - copia

By Jorge Cirett

During the 42nd week of the year (October 15th to October 21st, 2018), at least 31 press releases were announced by companies working in Mexico. San Marco and Odyssey released advances in exploration. Galore Resources and Aura Minerals released news on mining, while Avino Silver, First Majestic, Premier Gold and Gold Resource reported Q3 production results. Sonoro Metals, First Majestic, Azucar Minerals and Plata Latina reported news related to financing. Telson, Azure, Candelaria and Goldplay reported on advances on its properties. Santacruz, Prize Mining, Azucar Minerals, Alio Gold, Canuc Resources, Minera Alamos and Excellon presented information on deals or corporate issues. ON MEXICO ISSUES, CAMIMEX stated there are 19 ongoing projects to augment gold production in Mexico. ON EXPLORATION, In Baja California Sur, Odyssey informed on SEMARNAT’s refusal for permitting the Don Diego project. In Sonora, San Marco is to start mapping and sampling the Espiritu project. In Coahuila, Prize Mining continues drilling at its Manto Negro project. ON MINING, Avino Silver, First Majestic, Premier Gold, and Gold Resource reported on Q3 2018 production. Galore begun mining at Los Gemelos, Zacatecas. Aura Minerals completed the first copper concentrate shipment from Aranzazu, also in Zacatecas. ON FINANCING, Sonoro is undertaking a private placement to raise up to $500 K. First Majestic filed a shelf prospectus that enables the raising of up to US$300 M in 25 months. Newcrest is exercising its top up rights to maintain 19.9% ownership of Azucar Minerals. Plata Latina settled C$231 K of indebtedness by share issuing. ON RESOURCES AND DEVELOPMENT, Telson released high grade results from development sampling at Tahuehueto, Durango. Azure Minerals announced a positive scoping study on its Oposura project in Sonora. Candelaria Mining filed a NI-43-101 report on its Pinos project in Zacatecas. Goldplay was approved the drilling permit by SEMARNAT for drilling at its San Marcial project in Sinaloa. Azure Minerals released a positive scoping study on its Oposura project in Sonora, for an open pit/underground operation. Newcrest is to maintain its 19.9% ownership of Azucar Minerals (see above).  Minera Alamos reported second round drill results on its Santana property in Sonora. ON DEALS AND CORPORATE ISSUES, Santacruz Silver made the final payment to acquire a considerable land package in the Zacatecas district. Newcrest is to maintain its participation in Azucar Minerals. Canuc received conditional approval for its acquisition of Circle Energy. Alio Gold is disposing of some assets in Nevada and reducing its debt levels. Excellon is to sell the Beschefer project in Canada.

ON MEXICO ISSUES

  • According to CAMIMEX (Cámara Minera de México) there are 19 investment projects to be developed during the 2018-2019 period, five in Durango (Camino Rojo, Piritas in Peñasquito, El Compás, Fresnillo’s Piritas project and Juanicipio), four in Guerrero (Ana Paula, Bermejal underground, Media Luna, and Rey de Plata), four in Durango (Tahuehueto, Pitarrilla, Metates and San Agustin), Two in Sonora (Santa Gertrudis and a second leach plant at La Herradura), one in Puebla (Ixtaca) and one in Chihuahua (San Julian). Gold production in 2017 was 4,080,000 ounces, decreasing by 4% on the prior year, but considerably larger than the 848,000 ounces produced in year 2000.

ON EXPLORATION

  • San Marco Resources Inc. is to start exploration at its Espiritu porphyry copper project in Sonora. Work in the property will consist of geological mapping, surface rock sampling and assessment of past drill hole and surface data. San Marco’s first pass review suggest the system is open in most directions. Past drill hole intercepts include 48.0 m @ 0.19 g/t Au, 0.10 % Cu and 220.5 m @ 0.14 g/t Au, 0.15% Cu.
  • Odyssey Marine Exploration Inc. received notification that SEMARNAT repeated their refusal to issue an environmental permit for the phosphate deposit, “in direct contravention of the Order of the Federal Administrative Court”. SEMARNAT did not inform of any new environmental information used as a basis their decision, as was required in the Court’s Order. Odyssey “expects its legal team to file a new action before the Superior Section of the Federal Administrative Court demonstrating that SEMARNAT is in contempt of the Court’s Order with a request for sanctions and notification to Mexico’s Internal Control Unit” (Don Diego, Baja California Sur).
  • Prize Mining Corp. continues with the 30-hole 3,000 m drill program at its Manto Negro project in Coahuila. “Core is being logged and sampled and sent out for assay, with first results expected in November”.

ON MINING

  • Avino Silver & Gold Mines Ltd. announced its third quarter production results for 2018. In the Avino mine. during the period 81.5 K dry tonnes were milled @ 58 g/t Ag, 0.52 g/t Au, 0.54% Cu; with 84% Ag, 67% Au, 88% Cu recoveries to produce 112.6 K Oz Ag, 882 Oz Au, 865 K Lb Cu (or 3,935 Kg Ag, 28.31 Kg Au, 392.36 Tonnes Cu). In the San Gonzalo mine (which is nearing the end of its mine life) 19.7 K dry tonnes were milled @ 226 g/t Ag, 1.15 g/t Au; with 78% Ag, 75% Au to produce 107.8 K Oz Ag, 532 Oz Au (or 3,461 Kg Ag, 17,086 g Au). From the above ground stockpile 88.7 K tonnes were milled @ 62 g/t Ag, 0.45 g/t Au, 0.15% Cu; with 57% Ag, 52% Au, 37% Cu recoveries, to produce 97.4 K Oz Ag, 652 Oz Au, 112.8 K Lb Cu (or 3,127 Kg Ag, 20,931 g Au). An additional 8,212 Oz Ag were produced by a test program to recover precious metals and zinc from the San Gonzalo mine tailings. To counter significantly lower metal prices, Avino is reducing costs by postponing exploration, as well as reducing general and administrative costs in Mexico and British Columbia.
  • First Majestic Silver Corp. announced production results for Q3 2018. Consolidated results include the milling of 864 K tonnes of ore to produce 3.5 M Oz Ag, 35,260 Oz Au, 4.44 M Lb Pb, 1.23 M Lb Zn (or 6.74 M Oz AgEq). A 20% cost reduction program across all areas is being implemented to deal with the prolonged low silver prices. AgEq year on year production grew by 69%, mainly by the addition of the San Dimas operations. The mine by mine production table is below.

firstmajestic_2018-10-151 - copia.jpg

  • Galore Resources Inc. Has begun mining at Los Gemelos, in Zacatecas. Mining has begun without a feasibility study at Galore’s owned Duraznillo ranch, which includes the Los Gemelos and Duende 7 claims, within the Concepción del Oro district. The mining contractor has installed a gold processing plant with initial capacity of 90 tons per week. The proceeds, net of costs, are to be allocated with 40% to Galore and 60% to the contractor, URBYASA.
  • Aura Minerals Inc. completed the first shipment of copper concentrate since the reopening of its Aranzau mine in Zacatecas. Aura “continues to further progress on the underground mine development and operational improvements to the plant. Construction of the new tailings disposal system (TD5) is expected to be completed this year”.
  • Premier Gold Mines Ltd. released Q3 2018 production results, including figures from its Mercedes mine in Sonora, where 17,465 Oz Au; 88,390 Oz Ag were produced. “The Mercedes Mine remains focused on cost reduction and the development of new deposits to increase flexibility and productivity……. construction to expand tailings capacity began. Additionally, development continued on a drift from the Lagunas mine to access the higher-grade Marianas deposit located along the main Mercedes mine trend”.
  • Gold Resource Corp. reported preliminary production results for the third quarter 2018. During the period production totaled 434 tonnes Cu, 2,119 tonnes Pb, 4,970 tonnes Zn, and no details were disclosed on precious metals. For the first three quarters of 2018, 18,864 Oz Au, 1.34 M Oz Ag, 1,206 tonnes Cu, 5,274 tonnes Pb, 14,236 tonnes Zn were produced.

ON FINANCING

  • Sonoro Metals Corp. proposes to undertake a non-brokered private placement, aiming to raise up to $500K (Cerro Caliche, Sonora).
  • First Majestic Silver Corp. filed a preliminary short form base shelf prospectus that will allow First Majestic to raise up to US$300 M during the next 25 months (Six producing mines in Mexico).
  • Azucar Minerals Ltd. announced Newcrest Canada Holdings Inc. exercised its top-up rights pursuant to the May 2018 investor rights agreement with Azucar, acquiring additional shares for a total of $124.4 K, and maintaining its 19.9% ownership.
  • Plata Latina Minerals Corp. has agreed to settle indebtedness of C$201 K owing to its directors and indebtedness of C$30 K owing to its former CEO, by issuing common shares.

ON RESOURCES AND DEVELOPMENT

  • Telson Mining Corp. reported assay results from veins exposed during underground development at its Tahuehueto mine in Durango. Highlighted results comprise 3.25 m @ 7.10 g/t Au, 37 g/t Ag, 0.22% Cu, 0.9% Pb, 5.4% Zn; 6.10 m @ 5.04 g/t Au, 36 g/t Ag, 0.16% Cu, 1.8% Pb, 3.9% Zn; 8.05 m @ 2.52 g/t Au, 28 g/t Ag, 0.19% Cu, 0.8% Pb, 2.9% Zn; 4.20 m @ 8.02 g/t Au, 96 g/t Ag, 2.93% Cu, 5.0% Pb, 8.2% Zn; 4.40 m @ 2.62 g/t Au, 19 g/t Ag, 1.3% Cu, 3.8% Pb, 3.7% Zn.
  • Candelaria Mining Corp. filed a NI-43-01 preliminary feasibility assessment (PEA) report on its Pinos project, Zacatecas. The resources stand at: 85,847 tonnes @1.6 g/t Au, 83 g/t Ag measured; 175.7 K tonnes @ 3.6 g/t Au, 47 g/t Ag indicated; 529.6 K tonnes @ 3.6 g/t Au, 48 g/t Ag as inferred. The measured resources are in dumps, whereas the indicated and inferred resources are contained in veins 1.3 to 2.1 m in average widths. Production costs were evaluated for a range of 200 to 400 tonnes per day (tpd) operation. The capital cost is estimated at $13.5 M and the sustaining capital at $9.15 M.
  • Goldplay Exploration Ltd. received approval from SEMARNAT (Mexican environmental agency) for its upcoming drill programs at San Marcial, Sinaloa. Up to 69 drill holes can be completed within a two year window. A NI-43-101 resource estimate is to be completed before the end of 2018., and a PEA is expected to be undertaken in 2019.
  • Azure Minerals Ltd. announced a positive scoping study (SS) completed at its Oposura project in Sonora. “The Study delivers a Life of Mine (LOM) EBITDA of A$237 million, NPV(8%) (pre-tax) of A$112 million and an IRR (pre-tax) of 76%….. ”. The study calls for mining by open pit and underground methods 2.5 M tonnes @ 4.6% Zn, 2.6% Pb, 15.9 g/t Ag. The initial mine life is 5.3 years, with average annual production of 19 Kt Zn, 10 Kt Pb, 145 K Oz Ag. The total capital expenditure needed to achieve production is A$ 69.9 M (US$ 52.4 M).
  • Minera Alamos Inc. reported results on the second round of its phase 1 drilling program at its Santana property in Sonora. Highlighted results comprise 80.4 m @ 1.05 g/t Au; and 8.0 m @ 1.0 g/t Au and 24.5 m @ 0.81 g/t Au on a second hole. “Planning of the Phase 2 drill program will begin once the remaining drilling results have been received and interpreted”.

ON DEALS AND CORPORATE ISSUES

  • Santacruz Silver Mining Ltd. has made the final option payment to acquire 149 concessions covering 7,800 ha in the Zacatecas district. Santacruz now controls 8,900 ha in the district.
  • Azucar Minerals Ltd. informed Newcrest Canada Holdings Inc. has confirmed its intention to exercise its top-up rights on their last May signed agreement. Under the scheme, Newcrest is to maintain its 19.9% ownership of Azucar (El Cobre, Veracruz).
  • Alio Gold Inc. entered into a definitive agreement to sell the Lincoln Hill, Wilco and Gold Ridge projects in Nevada to Coeur Mining Inc.. Alio is to receive $19 M upon the closing of the transaction. Recently, Alio has also reduced its outstanding debt with Macquarie Bank Ltd. from $15 million in past June, to $5 million now. The Company expects to fully extinguish the MBL debt during the fourth quarter. Alio also settled a $5 M contingent liability that the Company acquired with its acquisition of Rye Patch Gold Corp. and the Florida Canyon Mine earlier this year. The Company has also updated its surety bond for the Florida Canyon Mine in Nevada, releasing an additional $5.1 million in cash (San Francisco, Sonora).
  • Canuc Resources Corp. received conditional approval from the TSX Venture Exchange for the previously announced acquisition of Circle Energy Ltd., a company with six oil prospective sections in Saskatchewan (San Javier, Sonora).
  • Excellon Resources Inc. entered into an option agreement with Wallbridge Mining Co. to sell the Beschefer project in Canada (Platosa, 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 image above, epidote veinlet with feld-K halo in andesitic volcanic rocks in a porphyry-Cu prospect in Jalisco. Picture by Jorge Cirett.

Highlights on the Second Week of October, 2018. Mining and Exploration News in Mexico

Sodic hydrothermal alteration

By Miguel A Heredia

During the 41th week of the year (October 08th to October 14th, 2018), at least 27 press releases were announced by companies working in Mexico, with eight reporting mining activities, seven informing on exploration results, four announcing financing issues, four communicating deals and corporate issues, two making donations to the local communities where they are working, and two reporting on resources and developments.  ON MEXICO ISSUES, Alamos Gold donated an educational center while Fresnillo plc contributed with a community library.  ON EXPLORATION, In Sonora, Minera Alamos reported drilling results from its Santana project, Sonoro Metals announced the launching of a 10,000m RC drilling program at its Cerro Caliche project, and Mexus announced an upcoming drill program at its Santa Elena project. In Chihuahua, VVC released drill results from its Samalayuca project. In Coahuila, Prize Mining reported underground sampling results from its Manto Negro project.  In Zacatecas, Advanced Gold presented drill results from its Tabasquena project. In Jalisco, Evrim received the environmental permit to drill its Cuale project. ON MINING, Capstone, Coeur, Endeavour, Fortuna, Great Panther, McEwen and Sierra Metals reported Q3 2018 results from their Mexican operations. Fortuna also reported overflow problems in the tailings facilities at its San Jose mine in Oaxaca. ON FINANCING, Galore closed a non-brokered private placement for gross proceeds of CDN$ 419.6 K. VVC increased its previous non-brokered private placement to CAD$ 2.5M. Sable raised an aggregate of $4.6M. Telson closed a non-brokered private placement for gross proceeds of $6.8M. ON RESOURCES AND DEVELOPMENT, Americas Silver provided updated mineral reserve and resource estimates for its Cosala operation in Sinaloa. Goldplay announced sampling results of historical core from its San Marcial project in Sinaloa.  ON DEALS AND CORPORATE ISSUES, Sonoro Metals acquired a 100% interest in the Cabeza Blanca concession (Cerro Caliche project, Sonora). Consolidated Zinc extended its share purchase plan until Monday 22 October, 2018 (Plomosas mine, Chihuahua). Leagold (Los Filos mine, Guerrero) appointed new COO and Plata Latina (El Naranjillo, Guanajuato) announced resignation of Director.

ON MEXICO ISSUES

  • Alamos Gold Inc., donated an educational center to the communities of Matarachi and Mulatos in Sonora.
  • Fresnillo plc., contributed with a library for the community of the Ejido Rodeo in Durango.

ON EXPLORATION

  • Minera Alamos Inc., reported initial results of a phase 1 drill program from its Santana project in Sonora. Significant intersections are Hole S118-116 with 93.5m of 0.65 g/t Au, Hole S118-115 with 17.8m of 0.73 g/t Au, and Hole S118-114 with 15.5m of 0.27 g/t Au and 14.9m of 1.4 g/t Au. “The first three holes were drilled near or within the Nicho deposit and were intended to evaluate mineralized extensions of previous exploration programs”. Assay results are pending from the remaining seven holes drilled during this phase 1 program.
  • Sonoro Metals Corp., announced the launching of a 10,00m RC drill program at its Cerro Caliche project in Sonora. The company has been granted with a 2 years environmental permit to drill 87 RC-holes in two years equivalent to approximately 10,000m. The Cerro Caliche´s target is a 2 square km zone with a cumulative total of over 10 km of gold mineralized quartz veins with associated lower grade veinlet zones.
  • Mexus Gold US, announced an upcoming drill program at its Santa Elena project in Sonora. Initial drilling will occur on 300m of the 2.2km long Julio vein and associated shear zone to probe a 100K Oz Au target.
  • VVC Exploration Corporation., presented results of sixteen holes drilled at the Gloria Extension East Zone within its Samalayuca project in Chihuahua. Highlights results are in Hole SC18-033 with 8.2m of 0.66% Cu, Hole SC18-34 with 10.1m of 0.34% Cu, Hole SC18-38 with 9.55m of 0.34% Cu, Hole SC18-39 with 9.6m of 0.38 % Cu, Hole SC18-40 with 14.4m of 0.35% Cu, Hole SC18-41 with 13.45m of 0.39% Cu, Hole SC18-43 with 25m of 0.32% Cu, Hole SC18-45 with 8m of 0.43% Cu, Hole SC18-46 with 6m of 0.41% Cu, Hole SC18-48 with 9m of 0.30% Cu, and Hole SC18-49 with 7.5m and 6m with 0.33% Cu and 0.35% Cu respectively.
  • Prize Mining Corporation, reported underground channel sampling results from the El Granizo mine within its Manto Negro Copper project in Coahuila. Thirty two individual samples returned > 1% Cu with a peak of 9% Cu. The weighted average content of the underground channel sampling was 2.62% Cu over an average channel height of 1.7m. Eleven samples returned > 100 g/t Ag and up to 199 g/t Ag, and eight samples with > 1% Pb to a maximum of 2.78% Pb.
  • Advanced Gold Corp., presented drill results from its Tabasquena project in Zacatecas. Three holes were drilled below the near surface oxide zone of the Tabasquena vein, the two furthest apart being 125m along strike. Highlights include the increase of the amount of quartz as drilling deeper and the discovery of 5 new blind epithermal veins.
  • Evrim Resources Corp., received drill permit and mobilized drill crew to its Cuale high sulphidation project in Jalisco. The drill program will consist of at least 3,000m and comprises between 10-15 drill holes. “The first drill holes at Cuale are planned at La Gloria to test the depth extent of the high grade Au mineralization encountered in trenches 1 and 4, followed by other high priority drill targets throughout the trenched area. Drilling is also planned at four step-out areas to test geophysical targets within the anomalous gold in soil geochemical and rock chip halo, including the North Dome which extends up to 1,000m north of the trenched area.

ON MINING

  • Capstone Mining Corporation, reported Q3 2018 results from its Cozamin mine in Zacatecas. Capstone milled 270,436 tonnes at a grade of 1.7% Cu, 1.1% Zn, 0.3% Pb and 49 g/t Ag to produce 9.7M Lb Cu, 4.6M Lb Pb, 983K Lb Pb, and 321K Oz Ag with metallurgical recoveries of 94.7%, 67.1%, 51.3% and 75.9% respectively.
  • Coeur Mining Inc., provided Q3 2018 results from its Palmarejo mine in Chihuahua. Coeur processed 300, 116 tonnes of 195 g/t Ag and 0.12 g/t Au to produce 1.3M Oz Ag and 14.7K Oz Au.
  • Endeavour Silver Corp., released Q3 2018 results from their three Ag-Au Mexican operations: Guanaceví mine in Durango, and the Bolañitos and El Cubo mines in Guanajuato. Production table for the third quarter is as follow:

 

Production for mine Tonnes produced Tonnes per

day

Grade

Ag

(g/t)

Grade

Au

(g/t)

Rec.

Ag

(%)

Rec.

Au

(%)

Ag

Oz

Au

Oz

Guanaceví 81,268 883 218 0.48 91.0 88.8 518,318 1,114
Bolañitos 109,728 1,193 84 1.67 79.7 82.0 236,197 4,832
El Cubo 126,825 1,379 188 2.00 88.0 86.1 674,313 7,022
Consolidated 317,821 3,455 160 1.50 87.5 84.8 1,428,828 12,968

 

  • Fortuna Silver Mines Inc., reported Q3 2018 results from its San Jose Mine in Oaxaca. Fortuna milled 262,710 tonnes of 258 g/t Ag and 1.61 g/t Au to produce 2M Oz Ag and 12.4K Oz Au, with metallurgical recoveries of 91.47% and 91.24% respectively. The company also reported that the heavy seasonal rains caused an overflow in a contingency pod of the dry stack tailings facilities at its San Jose mine.
  • Great Panther Silver Limited, announced Q3 2018 production results from their Mexican operations. At the Guanajuato Mine Complex, Great Panther processed 74,303 tonnes with grades of 124 g/t Ag and 2.12 g/t Au to produce 260.8K Oz Ag and 4.4K Oz Au with metallurgical recoveries of 87.8% and 87.1% respectively. At the Topia mine, the company processed 18,617 tonnes with grades of 334 g/t Ag, 0.90 g/t Au to produce 188K Oz Ag, 323 Oz Au, 11.28M Lb Pb, and 1.4M Lb Zn, with metallurgical recoveries of 94.0% for Ag and 59.6% for Au.
  • McEwen Mining Inc., presented production results from its El Gallo project in Sinaloa. Residual heap leaching at El Gallo resulted in 10.5K GEOs (gold equivalent ounces) in Q3 2018.
  • Sierra Metals Inc., released Q3 2018 production results from their Mexican operations. At the Bolivar mine, Sierra Metals processed 227,690 tonnes of 0.99% Cu, 17 g/t Ag and 0.17 g/t Au to produce 3.9M Lb Cu, 94K Oz Ag and 911 Oz Au with metallurgical recoveries of 78.30%, 74.27% and 68.59% respectively. At Cusi mine, the company processed 55,058 tonnes of 156 g/t Ag, 0.14 g/t Au, 0.3% Pb, and 0.3% Zn to produce 231K Oz Ag, 84 Oz Au 243K Lb Pb, and none Zn, with metallurgical recoveries of 83.49%, 32.97%, 78.0%, and 0.0% respectively.

ON FINANCING

  • Galore Resources Inc., closed a non-brokered private placement for gross proceeds of CAD$ 419.6K (Dos Santos, Zacatecas).
  • VVC Exploration Corporation, increased its non-brokered equity private placement financing to CAD$1.2M from the previously announced CAD$ 1.2M (Samalayuca Copper project, Chihuahua).
  • Sable Resources Ltd., raised an aggregate of $4.6M and also closed its previously announced bought deal financing for aggregate gross proceeds of $2.5M (Margarita project, Chihuahua).
  • Telson Mining Corporation, closed a non-brokered private placement for gross proceeds of $6.8M to finalize the construction of the Tahuehueto mine in Durango.

 

ON RESOURCES AND DEVELOPMENT

  • Americas Silver Corporation, provided update mineral reserve and resource estimates for its Cosala operation in Sinaloa, including Nuestra Señora, El Cajón, and San Rafel mines and the Zone 120 deposit. The estimate also includes San Felipe project in Sonora on which the company holds an option. Proven and probable mineral reserves at Cosala operation as June 30, 2018 are 2.9M tonnes of 110 g/t Ag, 1.7% Pb, and 4.0% Zn for a total content of 10.3 M Oz Ag, 107.7M Lb Pb, and 255.7M Lb Zn. Measured and Indicated mineral resources at Cosala (exclusive of mineral reserves) are 8.9M tonnes of 129 g/t Ag, 0.25% Cu, 0.5% Pb, and 1.2% Zn for a total content of 36.9M Oz Ag, 49M Lb Cu, 102.8M Lb Pb, and 231.2M Lb Zn, while inferred resources are 2.96M tonnes of 113 g/t Ag, 0.21% Cu, 0.9% Pb, and 1.4% Zn for a total content of 10.8M Oz Ag, 14M Lb Cu, 59.1M Lb Pb, and 88.1M Lb Zn. At San Felipe project, measured and indicated mineral resources are 4.7M tonnes of 61 g/t Ag, 2.48% Pb, and 5.42% Zn for a total content of 9.1M Oz Ag, 256M Lb Pb and 559.7M Lb Zn, while inferred resources are 2M tonnes of 48 g/t Ag, 1.4% Pb, and 3.6 g/t Zn for a total content of 3.1M Oz Ag, 63.2M Lb Pb and 157.8M Lb Zn.
  • Goldplay Exploration Ltd., announced positive results from sampling of the historical core at its San Marcial project in Sinaloa. Highlights results are in Hole SM-10-07 with 57.3m (TW 51.6m) of 122 g/t Ag Eq, including 14.3m (TW 12.9m) of 278 g/t Ag Eq, including 18.6m (TW 16.7m) of 117 g/T Ag Eq, and Hole SM-10-15 with 7m (TW 52.8m) of 104 g/t Ag Eq, including 12.5m (TW 11.2m) of 379 g/t Ag Eq. “The high-grade results support open pit potential of the initial 500 meter long deposit”.

ON DEALS AND CORPORATE ISSUES

  • Sonoro Metals Corp., acquired a 100% interest in the 10 Has Cabeza Blanca concession paying to the vendor US$175K and 250K Sonoro common shares, this to be paid in five installments over 2 years. “The Cabeza Blanca agreement completes our acquisition of all the mineral concessions under consideration within the 14 km² Cerro Caliche group,” said Kenneth MacLeod, President and CEO of Sonoro. “Cabeza Blanca’s strategic location within Cerro Caliche, along with the positive results from our sampling program and similar results from earlier exploration programs, makes this concession a priority target for Sonoro to drill.”
  • Consolidated Zinc Limited, extended its share purchase plan until Monday 22 October, 2018 from the previous closing date of 15 October 2018.

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, sodic hydrothermal alteration in a Cu-Mo prospect in Coahuila, Mexico.  Photo by Miguel A Heredia.

Highlights on the Fourth Week of September, 2018. Mining and Exploration News in Mexico

 

Bladed quartz texture

By Miguel A Heredia

During the 39th week of the year (September 24th to September 30th, 2018), at least 19 press releases were announced by companies working in Mexico, with seven informing on exploration results, five announcing financing issues, four communicating deals and corporate issues, two reporting mining activities and one reporting on resources and developments.  ON MEXICO ISSUES, no relevant news.  ON EXPLORATION, In Sonora, Mexus Gold announced a drill program at the Julio Shear Zone within its Santa Elena project. In Chihuahua, Ethos Gold provided an update on its la Purisima project, and Harvest Gold announced that a drill program will commence shortly on its Cerro Cascaron project. In Coahuila, Discovery Metals released exploration results from its Puerto Rico project. In Jalisco, Evrim expanded gold mineralization at its Cuale project. In Veracruz, Azucar Minerals revealed drilling results from its El Cobre project. In Estado de Mexico, Impact reported sampling results from its Santa Teresa Au-Cu area. ON MINING, Telson provided an update on its Campo Morado mine in Guerrero and Goldcorp announced that will release Q3, 2018 results on October.  ON FINANCING, Defiance increased a loan facility from $700K to up to $1,120,810. Harvest Gold raised $980K from the purchase of 12.25M of warrants. Telson announced a non brokered private placement for CAD$6.5M. Avino closed a US$4.6M underwritten public offering.  Consolidated Zinc announced a share purchase plan to raise funds. ON RESOURCES AND DEVELOPMENT, Goldplay announced sampling results of historical core from its San Marcial project in Sinaloa.  ON DEALS AND CORPORATE ISSUES, Ethos Gold entered in an option agreement to expand its La Purisima project in Chihuahua. Southern Silver provided a corporate update (Cerro Las Minitas, Durango). Alamos Gold declared semi-annual dividend (Mulatos mine, Sonora) and Gold Resource monthly dividend (El Aguila mine, Oaxaca).

ON MEXICO ISSUES

  • No relevant news.

ON EXPLORATION

  • Mexus Gold US, is to commence a drilling program at the 2,200m long by 300m wide Julio Shear Zone within its Santa Elena project in Sonora. The 12 hole core drill program “is to establish structural features, the types of mineralization and define up to 100K Oz Au resource in about a 500,000 ton resource block, building towards a future 43-101 report”.
  • Ethos Gold Corp., reported that has completed a rock sampling and geological mapping program on its La Purisima project in Chihuahua. “Work to date indicates at least five sub parallel north-west striking mineralized veins with significant broad vein enveloping areas of gold mineralized stockwork in intervening rock between the veins. Additionally, gold mineralized vein splays and stockwork zones diverge from the primary veining, usually into northeast trends”. Ethos has designed an angled holes drill program to test targets at its la Purisima property. Permitting for the drill program is now underway.
  • Harvest Gold Corporation, announced that a first phase drilling program will commence shortly on its Cerro Cascaron project in Chihuahua. The first phase plan for diamond drilling consists of 14 diamond drill holes comprising 3,000m to 3,500m in five of eight target areas on the property which have been defined by rock channel, grab and soil samples.  Planned drill hole depths range from 100m to 300m.
  • Discovery Metals Corp., released results from an underground channel sampling at its Puerto Rico project in Coahuila. Highlights results are 1.8m of 101 g/t Ag, 9.5% Pb and 20% Zn on “Manto 7”; 1.4m of 116 g/t Ag, 6.1% Pb, and 22.5% Zn on “Manto 12”; and 1.1m of 253 g/t Ag, 10.8% Pb, and 11.7% Zn on “Manto 8”; 0.8m of 279 g/t Ag, 27% Pb, and 26.5% Zn on “Chimney NW1”; 0.6m of 484 g/t Ag, 22.7% Pb, and 22.1% Zn; and 0.5m of 701 g/t Ag, 43.5% Pb, and 5.9% Zn.
  • Evrim Resource Corp., expanded outcropping Au mineralization at its Cuale project in Jalisco. Trenching on the La Gloria area extended the outcropping mineralization to the southwest where continuous mineralization remains open, and the CSAMT geophysical survey confirmed at least 200m of depth potential beneath the trenches. Highlights of the trenching sampling at la Gloria are T-6 with 158.8m of 1 g/t Au, including 90.8m of 1.44 g/t Au from 66m along the trench, and 14.8m of 5.19 g/t Au from 142m along the trench; and T-7 with 141.1m of 0.72 g/t Au, including 80m of 1.02 g/t Au from 107.1m along the trench, and 40m of 1.42 g/t Au from 145.1m along the trench. The sampling results define a NW trend of Au mineralization along 1,430m, including the North Dome Target that contains assays up to 11.9 g/t Au, and reveals a new drill target 1Km NW of the La Gloria trenches. The CSAMT geophysical survey also defined a prospective silica target extending 200-300 directly beneath the trenches at La Gloria area, doubling the depth potential. Evrim is interpreting all the results to refine and finalize drill hole location for the initial drilling program at its Cuale project.
  • Azucar Minerals Ltd., revealed drill results from its El Cobre project in Veracruz. Significant intersections are in hole EC-18-049, Norte Zone with 44m of 0.47 g/t Au and 0.32% Cu, including 10m of 0.88 g/t Au and 0.47% Cu, and 10m of 0.53% Au and 0.39% Cu, and hole EC-18-051 Norte Zone with 227m of 0.37 g/t Au and 0.14% Cu, including 12m of0.80 g/t Au and 0.32% Cu, 75.5m of 0.61 g/t Au and 0.19% Cu, 12.5m of 1.17 g/t Au and 0.33% Cu, and other interval of 118m of 0.70 g/t Au and 0.23% Cu, including 6m of 1.09 g/t Au and 0.34% Cu.
  • Impact Silver Corp., reported assay results from its Santa Teresa Au-Cu area within the Zacualpan District in Estado de Mexico. A recent sampling from the El Canelo vein systems at Santa Teresa averaged 6.5g/t gold over a true width of 1.66 meters along a strike length of 50 meters. The system remains open for expansion and parallel vein systems in the area are being mapped and sampled at this time.

ON MINING

  • Telson Mining Corporation, provided an update on its Campo Morado mine in Guerrero. The company made several upgrades in the mill processing plant to increase the grinding capacity of the mill to process up to 3,000 tonnes per day by the end of 2018. The company also conducted metallurgical testing obtaining favourable results for increasing the quality of Zn concentrates.

ON FINANCING

  • Defiance Silver Corp., increased a loan facility from $700K to $1.12M. This financing is to complete its proposed merger with ValOro Resources Inc. (San Acacio, Zacatecas).
  • Harvest Gold Corporation, announced that 12.25M of warrants were exercised for aggregate proceeds of $980K. (Cerro Cascaron, Chihuahua).
  • Telson Mining Corporation, announced a non-brokered private placement for CAD$6.5M. Net gross proceeds will be used for finalizing construction of its Tahuehueto mine in Durango.
  • Avino Silver & Gold Mines Ltd., closed a US$4.6M underwritten public offering, including the partial exercise of underwriters´ overallotment option. After deducting the underwriting discounts and commissions, the net proceeds are expected to be approximately US$4.1M (Avino mine, Durango).
  • Consolidated Zinc Limited, invited to its shareholders to participate in a share purchase plan with no brokerage cost to raise $1.5M (Plomosas mine, Chihuahua).

 

ON RESOURCES AND DEVELOPMENT

  • Goldplay Exploration Ltd., reported sampling results of historical core from its San Marcial project in Sinaloa. Significant results are 93m (TW 68m) of 104 g/t Ag or 165 g/t Ag Eq, including 10m of 324 g/t Ag or 508 g/t Ag Eq; 57m (TW 46m) of 122 g/t Ag or 270 g/t Ag Eq; 42m (TW 39.6m) of 80 g/t Ag or 153 g/t Ag Eq; 35m (TW 32m) of 38 g/t Ag or 64 g/t Ag Eq; 19.2m (TW 12.6m) of 130 g/t Ag or 144 g/t Ag Eq; 12m (TW 12m) of 419 g/t Ag or 467 g/t Ag Eq, including 6m of 939 g/t Ag or 1,012 g/t Ag Eq. These results, together with the historical results, reinforce open pit development potential at San Marcial. “The continuous sampling from the historical core is providing valuable information to expand and connect mineralized zones previously modeled in the historic resource”.

ON DEALS AND CORPORATE ISSUES

  • Ethos Gold Corp., entered in an option agreement in Chihuahua to earn a 100% right, title and interest in and to 897 hectares of mineral concessions contiguous to its La Purisima project. Ethos can exercise the option by paying the property owner US$550K and granting 2% NSR of which the company can purchase 1% by paying US$1.0M. It also includes advance NSR payments of US$25K on closing, US$35K by the first anniversary, US$35K by the second anniversary, and US$50K by the third anniversary and by each subsequent anniversary until commercial production is commenced. In addition, Ethos will assign 1.5M Ethos warrants, having a 5-year term, and each exercisable to purchase one Ethos common share at CAD$0.15 per share, with these warrants vesting as to 500K on closing, 500K vesting 18 months, and 500K vesting 36 months after closing.
  • Southern Silver Exploration Corp., announced the re-election of Directors at its annual general meeting and granted 800K incentive stock options to directors, officers and consultants.
  • Alamos Gold Inc., declared semi-annual dividend to its shareholders of US$0.01 per common share (Mulatos mine, Sonora)
  • Gold Resource Corporation, declared monthly dividend to its shareholders of 1/6 of a cent per common share (El Aguila mine, Oaxaca).

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

On the picture above,  bladed quartz texture in a low sulphidation epithermal project in Zacatecas, Mexico.  Photo by Miguel A Heredia.

 

Highlights on the Third Week of September, 2018. Mining and Exploration News in Mexico

IMG_0970 - copia

On the image above, weakly silicified ridge on strongly argillitized volcanic rocks and minor quartz veining in clay pit in Hidalgo (Man-made produced differential erosion). Picture by Jorge Cirett.

By Jorge Cirett

During the 38th week of the year (September 17th to September 23rd, 2018), at least 24 press releases were announced by companies working in Mexico. Prize Mining, Kootenay, Silver Viper and Radius released advances in exploration. Excellon and Consolidated Zinc released news on mining. Prospero, Oceanus, Sable, Avino and Advance Gold reported news on financing. Capstone, Goldplay, Gold Resource, Excellon, Southern Silver, Endeavour and SilverCrest reported on development of its properties. Defiance Silver, and Valoro are to merge, Arian Silver is to change name whereas Kootenay and Radius reported deals on properties. ON MEXICO ISSUES, Goldcorp opened a health clinic in Zacatecas. ON EXPLORATION, in Sonora, Silver Viper started drilling on the Rubi-Esperanza claims of La Virginia project. In Chihuahua, Radius Gold is to drill the Amalia property. In Coahuila, Prize Mining initiated drilling at Manto Negro. ON MINING Excellon commented on production issues at Platosa, while Consolidated Zinc completed the first ore shipment from its Plomosas mine. ON FINANCING, Prospero Silver completed the private placement financing for CAD$356 K with Fortuna Silver. Oceanus raised $750 K. Sable entered a bought deal private placement for $2M. Avino Silver announced the pricing of US$4 M of an underwritten public offering. Advance Gold filed documents closing a financing for $255.3 K. ON RESOURCES AND DEVELOPMENT, Capstone, Goldplay, Gold Resource, Excellon, Southern Silver and Endeavour released drilling results aimed to better define or increase the resource base on their properties. SilverCrest presented an updated mineral resource estimate on its Las Chispas project. ON DEALS AND CORPORATE ISSUES, Defiance Silver and Valoro Resources signed a LOI on a merger. Kootenay optioned the Copalito property in Sinaloa. Arian Silver is to change name to Alien Metals. Pan American optioned the Amalia property in Chihuahua.

ON MEXICO ISSUES

  • GoldCorp opened a rural clinic in Mazapil, Zacatecas. With the investment of $40 M pesos GoldCorp executives opened the Unidad Médica Regional (Regional Medical Unit) in the Cedros community, within the Mazapil municipality of Zacatecas. The unit will be manned by IMSS-Prospera personnel, was presented as the most equipped rural clinic in the country, and is to provide 24 hours medical service to more than 2300 inhabitants.

ON EXPLORATION

  • Prize Mining Corp. initiated a 3,000 m diamond drilling program at its Manto Negro project in Coahuila. The program is focused on the El Granizo and Pilar Grande areas, which are 18 km apart, to test high-grade copper and silver surface oxide deposits.
  • Kootenay Silver Inc. presented encouraging rock-chip results from its recently optioned Copalito property in Sinaloa. Highlighted samples returned: 1.0 m @ 0.23 g/t Au, 104 g/t Ag, 0.13% Pb, 0.67% Zn; 1.5 m @ 0.50 g/t Au, 32 g/t Ag, 0.85% Pb, 0.40% Zn; 1.9 m @ 2.36 g/t Au, 50 g/t Ag, 0.50% Pb, 0.72% Zn; 1.5 m @ 0.45 g/t Au, 122 g/t Ag; 1.5 m @ 0.11 g/t Au, 1,700 g/t Ag, 0.26% Pb, 0.07% Zn; 1.0 m @ 0.40 g/t Au, 1,030 g/t Ag, 0.08% Pb, 0.10% Zn on La Chiva vein, 2.0 m @ 0.02 g/t Au, 474 g/t Ag, 0.26% Pb, 0.87% Zn; 1.10 m @ 0.15 g/t Au, 309 g/t Ag; 0.11% Pb on the Agua vein and 1.0 m @ 1.23 g/t Au, 1,155 g/t Ag; 0.96% Pb, 1.68% Zn; 1.0 m @ 1.82 g/t Au, 396 g/t Ag, 0.70% Pb, 1.17% Zn; 1.9 m @ 0.04 g/t Au, 301 g/t Ag; 0.04% Pb, 0.06% Zn on the 5 Señores vein.
  • Radius Gold Inc. announced the arrival of two drill rigs and commencement of drilling at its Amalia property in Chihuahua. “The drill program is operated by Radius and funded by Pan American Silver, under a joint venture agreement”. The targets to be tested are Campamento, Guadalupe and Dulces. The three comprise a continuum from high level to deeper epithermal mineralization in rough terrain, with stockwork zones, structurally controlled breccias and veins with both bulk mining and high-grade targets.
  • Silver Viper Minerals Corp. announced the completion of a drill camp and the initiation of drilling at the La Virginia project in eastern Sonora. Phase I drilling will be concentrated on the Rubi-Esperanza group of claims, with a combination of confirmation drilling (25%) over known mineralized trends and exploration drilling (75%) on untested targets. “Confirmation holes are planned in and around the historic La Virginia and Con Virginia workings and seek to confirm previously reported widths and grades of the main mineralized trend. These holes are designed to complement existing data, testing gaps in the previous work and testing the main trends for continuity and grade. Exploration holes are planned for nearby prospect areas: La Colonia, La Cascada and El Rubi. Additional prospects may be tested during Phase I as the campaign progresses”.

ON MINING

  • Excellon Resources Inc. anticipates “production in the quarter to be approximately 300,000 AgEq ounces due to operational issues related to surveying and planning personnel and lower byproduct prices. The operational issues have now been addressed and the operation is getting back on track”.
  • Consolidated Zinc Ltd. completed the first shipment of ore from its Plomosas mine in Chihuahua. “The Company plans to deliver 100 tonnes per day to the Santa Eulalia concentrator for the rest of this month for processing. Thereafter the Plomosas mine will scale up operations in order to deliver feed to the concentrator at or above 10,000 tonnes per month within nine months”.

ON FINANCING

  • Prospero Silver Corp. completed its recently announced private placement financing with Fortuna Silver Mines Inc., raising aggregate gross proceeds of CAD$356 K to test Prospero’s Bermudez project in Chihuahua.
  • Oceanus Resources Corp. closed a non-brokered private placement, raising $750K (El Tigre, Sonora).
  • Sable Resources Ltd. entered into an agreement with Haywood Securities Inc. in a bought deal private placement for total gross proceeds of $2 M (Margarita, Chihuahua).
  • Avino Silver & Gold Mines Ltd. announced the pricing of 6.2 M common shares and an equal amount of warrants at US$0.65 per share and associated warrant at US$0.80. The shares amount to US$4 M of underwritten public offering (Avino, Durango).
  • Advance Gold Corp. filed documents on the TSX to close its previously announced private placement financing for gross proceeds of $255.3 K. The financing was effected with two insiders of the company (Tabasqueña, Zacatecas).

ON RESOURCES AND DEVELOPMENT

  • Capstone Mining Corp. disclosed high-grade results from step-out drilling at its Cozamin mine in Zacatecas, which are to be included in a re-estimation of mineral resources later this year. Since the last estimation on March 2018, Capstone has drilled 46 additional holes, with drill intercepts underpinning the decision to elaborate the new resource estimation. Selected true width intercepts comprise 15.4 m @ 3.88% Cu, 0.12% Zn, 0.01% Pb, 63 g/t Ag, 0.02 g/t Au; 8.0 m @ 2.08% Cu, 0.07% Zn, 0.01% Pb, 70 g/t Ag, 0.15 g/t Au; 17.1 m @ 2.19% Cu, 0.07% Zn, 0.01% Pb, 39 g/t Ag, 0.01 g/t Au; 14.8 m @ 5.34% Cu, 0.8% Zn, 0.03% Pb, 112 g/t Ag, 0.05 g/t Au; 9.7 m @ 2.26% Cu, 0.07% Zn, 0.01% Pb, 29 g/t Ag.
  • Goldplay Exploration Ltd. released additional results from sampling historical core drill holes (2010) from its San Marcial project in southern Sinaloa. “The new results expand known mineralization 200 meters down dip beyond the historic NI 43-101 resource area…” and delineate a new discovery subparallel to the main zone. Highlighted true width intervals comprise 4.0 m @ 63 g/t Ag, 1.0% Pb, 1.3% Zn, 0.07 g/t Au; 9.0 m @ 73 g/t Ag, 0.09% Pb, 0.2% Zn, 0.07 g/t Au; 3.0 m @ 139 g/t Ag, 0.03% Pb, 0.15% Zn, 0.04 g/t Au (including 1.0 m @ 501 g/t Ag, 0.09% Pb, 0.4% Zn, 0.08 g/t Au); 2.0 m @ 120 g/t Ag, 0.2% Pb, 0.7% Zn, 0.1 g/t Au; 16.0 m @ 57 g/t Ag, 0.1% Pb, 0.4% Zn, 0.04 g/t Au. The new mineralization style discovered is comprised of pervasive stockwork of millimetric veins hosted by a silicified epiclastic volcanic sequence, with a core length of 47 m showing grades from 0.2 to 1.1 g/t Au.
  • Gold Resource Corp. presented drill highlights from its Alta Gracia 2018 drill program in Oaxaca. The Alta Gracia project hosts the Mirador mine, located 16 km NW from the company’s Aguila project and mineral processing plant. Core length highlighted intervals on the Independencia and Victoria veins comprise 10.30 m @ 0.85 g/t Au, 1,052 g/t Ag; 5.18 m @ 0.55 g/t Au, 241 g/t Ag; 9.59 m @ 0.36 g/t Au, 430 g/t Ag; 2.70 m @ 1.67 g/t Au, 902 g/t Ag. Gold Resource “believes it has discovered a wide, high-grade silver ore shoot within the Independencia vein”, which is located 500 m SW along strike from its Mirador Mine.
  • Excellon Resources Inc. informed on expansion, infill and definition drill results from the 623 Manto and Rodilla manto areas on its Platosa mine in Durango. Highlighted core length intervals comprise 10.5 m @ 0.1 g/t Au, 397 g/t Ag, 2.6% Pb, 4.1% Zn; 4.7 m @ 0.1 g/t Au, 266 g/t Ag, 2.6% Pb, 2.5% Zn; 9.1 m @ 122 g/t Ag, 2.0% Pb, 0.5% Zn; 9.0 m @ 56 g/t Ag, 0.6% Pb, 1.1% Zn; 2.7 m @ 0.4 g/t Au, 783 g/t Ag, 8.2% Pb, 11.1% Zn; 3.5 m@ 489 g/t Ag, 1.5% Pb, 2.3% Zn; 5.5 m @ 2.9 g/t Au, 1,700 g/t Ag, 15.4% Pb, 21.4% Zn; 15.1 m @ 0.4 g/t Au, 1,014 g/t Ag, 10.9% Pb, 26.0% Zn; 6.5 m @ 268 g/t Ag, 4.0% Pb, 4.9% Zn. These results were not included on the previous resource estimate (Sept 7, 2018) and represent the potential for additional mineral resources.
  • Southern Silver Exploration Corp. informed additional metallurgical test work on the Skarn Front deposit from the Cerro Las Minitas Project has resulted in both the successful separation of a potential “saleable grade” copper concentrate as well as the generation of a cleaner zinc concentrate grading above 50% zinc without sacrificing zinc, lead or silver recoveries.The test work on the Skarn Front deposit recovered three concentrates: Cu-Ag; Pb-Ag and Zn-Ag (for recoveries of 67.7% Cu, 82.5% Pb, 89.5% Zn and 90.6% Ag).
  • Endeavour Silver Corp. reported high-grade infill drilling results from its Terronera property in Jalisco. Some highlighted true width intercepts: 3.9 m @ 2.6 g/t Au, 86 g/t Ag; 3.4 m @ 2.1 g/t Au, 136 g/t Ag; 3.3 m @ 0.9 g/t Au, 782 g/t Ag; 5.3 m @ 1.2 g/t Au, 783 g/t Ag; 4.2 m @ 0.7 g/t Au, 524 g/t Ag; 6.1 m @ 0.9 g/t Au, 1,297 g/t Ag; 7.7 m @ 4.8 g/t Au, 169 g/t Ag; 9.8 m @ 2.4 g/t Au, 197 g/t Ag; 3.7 m @ 4.5 g/t Au, 102 g/t Ag; 8.0 m @ 3.0 g/t Au, 85 g/t Ag; 5.6 m @ 7.1 g/t Au, 185 g/t Ag; 4.6 m @ 3.1 g/t Au, 131 g/t Ag; 8.2 m @ 3.4 g/t Au, 49 g/t Ag; 8.7 m @ 6.2 g/t Au, 90 g/t Ag; 1.8 m @ 13.2 g/t Au, 340 g/t Ag.  “Mineralization in the Terronera vein has been intersected over 1400 m long by 500 m deep, and it remains open at depth”.
  • SilverCrest Metals Inc. released an updated mineral resource estimate for its Las Chispas property in Sonora. Inferred Mineral Resources are estimated at 4.3 M tonnes grading 3.68 g/t Au, 347 g/t Ag, or 623 g/t AgEq, containing 551.8 K Oz Au, 48.3 M Oz Ag, or 86.7 M Oz AgEq, using a 150 AgEq cut-off grade and minimum true vein width of 1.5 M. “The combination of the Area 51 zone (Babicanora Vein) and adjacent Babicanora Norte Vein hosts a combined Inferred Resource of 1.6 million tonnes grading 6.97 gpt gold and 568 gpt silver, or 1,091 gpt AgEq containing 56.3 million ounces of AgEq”. Eight of the 30 veins in the district were used for the updated resource estimate. .

ON DEALS AND CORPORATE ISSUES

  • Defiance Silver Corp. and ValOro Resources Inc. entered into a letter of intent (LOI) to complete a friendly merger, on which the combined company will continue under the name of Defiance Silver Corp.. Defiance owns the San Acacio silver project in Zacatecas, whereas ValOro owns the Tepal gold-copper project in Michoacan. ValOro shareholders will receive 0.71 common shares of Defiance for each share of ValOro held.
  • Kootenay Silver Inc. recently optioned the Copalito property in Sinaloa. Kootenay can acquire 100% ownership on the concession by making staged payments over a 4 year period totaling an aggregate of US$985 K. The property consists of seven concessions totaling 3,700 hectares, with a classic low sulfidation epithermal vein system with numerous small old workings and no evidence of historic exploration drilling.
  • Arian Silver Corp. informed on a favorable vote in its annual general meeting to change the name of the company to Alien Metals Ltd. (San Celso, Zacatecas).
  • Radius Gold Inc. granted Pan American Silver Corp. the option to earn up to an initial 65% interest in the Amalia project in Chihuahua, by making staged cash payments to Radius totaling US$1.5M (US$100 K already paid) and expending US$2 M in exploration over four years. Pan American can earn an additional 10% by advancing the property to preliminary feasibility study. Initially Radius will be the project operator.

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

On the image above, weakly silicified ridge on strongly argillitized volcanic rocks and minor quartz veining in clay pit in Hidalgo (Man-made produced differential erosion). Picture by Jorge Cirett.

Highlights on the Second Week of September, 2018. Mining and Exploration News in Mexico

Banded quartz epithermal vein

By Miguel A Heredia

During the 37th week of the year (September 10th to September 16th, 2018), at least 22 press releases were announced by companies working in Mexico, with ten informing on exploration results, six reporting on resources and developments, four communicating deals and corporate issues, and two announcing production results.  ON MEXICO ISSUES, no relevant news.  ON EXPLORATION, In Sonora, Riverside and Kootenay announced exploration results from its Cecilia and La Mina projects respectively. In Chihuahua, Harvest Gold began preparations to drill test its Cerro Cascaron project and Sable Resources released drilling results from its Margarita project.  In Sinaloa, Auxico reported sampling results from its Zamora project In Durango, Gainey announced a 1st phase of exploration at its Las Margaritas project, Orex commenced fieldwork exploration on its San Luis del Cordero project, and Prospero reported drilling results from its Buenavista project. In Zacatecas, Advance Gold started a phase 2 drilling program at its Tabasquena project. In Jalisco, Evrim announced trench and soil results from its Cuale project.  ON MINING, Starcore reported Q1 2018 results from its San Martin mine in Queretaro. US Antimony announced plans to increase its production of Sb, Au and Ag in Mexico. ON FINANCING, no relevant news. ON RESOURCES AND DEVELOPMENT, In Sonora, SilverCrest and Premier Gold released drilling results from its Las Chispas and Mercedes projects respectively. Aura provided an update at its Aranzazu mine in Zacatecas. Candelaria announced a PEA for its Pinos Gold project in Zacatecas.   McEwen reported that hopes to add 12 years of mine life at its El Gallo Complex in Sinaloa.  ON DEALS AND CORPORATE ISSUES, Evrim and First Majestic agreed to exercise the Ermitaño and Cumobabi option agreements in Sonora. New Gold announced the appointment of its new President and CEO (Cerro San Pedro mine, San Luis Potosi). Levon announced results from its annual general meeting (Cordero project, Chihuahua). Vangold withdrew its submission to acquire the San Carlos property in Guanajuato (El Pinguico mine, Guanajuato).

ON MEXICO ISSUES

  • No relevant news.

ON EXPLORATION

  • Riverside Resources Inc., completed 11 N-S lines for soil sampling which returned strong multi-elements anomalies with Au, Pb, Cu, and other key elements. These results along with previous exploration work have outlined four new target areas on its Cecilia project in Sonora. Target 1 is a 4km long by 300m wide target where previous rock sampling has found up to 2 g/t Au in silicified conglomerates , but the soil anomaly is open in both directions beyond the 4 Km and more than 800m wide. Target 2 is a NE trending Ag, Pb, Au, Zn, Sb, Hg and Cu soil anomaly over 2km long and 600m wide in rock cracks with faults and host veining displaying a series of NW striking feeder dikes. Target 3 is a 1km long by 500m wide Au-Zn with minor Ag, Cu, Pb and Bi soil anomaly associated to a N-S trending fault system intersecting Paleozoic limestones. This target is also along the border edge of a magnetic high reported in a regional government geophysics survey likely associated with Pre Cambrian granitic basement.  Target 4 contains “high-grade gold samples in soils and alteration with jasperoid, silicification, and carbonate veining of the Paleozoic limestone that gives a potential limestone hosted Au with anomalous soil assays of Zn, Pb, Ag and Mn”.
  • Kootenay Silver Inc., announced that its partner Capstone Mining Corp., has commenced an exploration program on its la Mina project in Sonora. The exploration program will consists of detailed mapping and rock chip / stream sediment sampling to generate potential drill targets.
  • Harvest Gold Corporation, reported that Evrim Resources, its JV partner and operator on its Cerro Cascaron project in Chihuahua, has mobilized an advance team to the site to start preparations to drill test the property. The drill program, expected to commence at the end of September, will consist of 3,000 m to test the Cascaron Gold targets and the Cascarita Silver targets.
  • Sable Resources, released drilling results from its Margarita project in Chihuahua. Significant intersections are from hole M-DDH-18-09 with 6.5m of 111 g/t Ag Eq, including 3.5m of 153 g/t Ag; hole M-DDH-18-11 with 11.3m of 252 g/t Ag Eq, including 1.3m of 889 g/t Ag Eq; hole M-DDH-18-12 with 12.7m of 98 g/t Ag Eq, including 1.8m of 244 g/t Ag Eq. Additionally, Sable identified a low-grade stockwork style of mineralization evident in numerous holes. The most significant results are hole M-DDH-18-03 with 44.13m of 50 g/t Ag Eq, including 6.95m of 142 g/t Ag Eq; hole M-DDH-18-07 with 7.6m of 54 g/t Ag Eq, and hole M-DDH-18-12 with 21.35m of 37 g/t Ag Eq. “With the first stage of drilling now complete we will evaluate our results and formulate a plan for stage 2 drilling targeting further extensions of Margarita and the other adjacent parallel veins”.
  • Auxico Resources Canada Inc., reported high-grade sampling results from its Zamora project in Sinaloa. Significant results are 0.80m of 4Kg Ag and 29.2 g/t Au at La Franca claim, 600m southwest of the Campanillas mine along a structure that can be followed by at least 600m along strike. Mineralization consists of breccia-stockwork veining containing galena, sphalerite and possible silver sulphosalts, malachite and chalcopyrite. Other significant results are from Aguamas area where some channel samples returned 0.65m of 6.38 g/t Au and 23 g/t Ag; 0.70m of 14.7 g/t Au and 34 g/t Ag; 0.50m of 3.55 g/t Au and 108.7 g/t Ag; and 1.60m of 6.64 g/t Au and 220 g/t Ag.
  • Gainey Capital Corp., announced a phase 1 exploration program on its Las Margaritas project in Durango. Las Margaritas is a mineralized vein system that extends at least 1.5Km along strike and averages 1-2m in width. The 1st phase exploration program will consists of detailed mapping and sampling with the objective to identify prospective areas to generate the best drill targets.
  • Orex Minerals Inc., commenced an exploration program on its San Luis del Cordero project in Durango, where the company has an option to acquire 100% interest in the property from Exploraciones del Altiplano S.A. de C.V. Mineralization at San Luis del Cordero is characterized by skarn and epithermal vein Ag-Cu-Zn as a result of Tertiary-quartz-feldspar-porphyry intrusions affecting Jurassic and Cretaceous limestones, calcareous sandstones and shales. The project has seen several phases of exploration from different mining companies, including 16,400m drilled in 62 holes in the period 2000-2016. The property contains indicated resources of 662.6K tonnes of 121 g/t Ag, 0.78 % Cu and 1.1 % Zn for a total of 5.1M Oz Ag Eq, and inferred resources of 2, 785,300 tonnes of 144 g/t Ag, 0.75 % Cu and 1.45 % Zn, for a total of 24.4 M Oz Ag Eq.
  • Prospero Silver Corp., reported core drilling results from eleven holes totaling 2, 811m drilled at its Buenavista project in Durango. Mineralization drilled-tested at Buenavista consists of structurally controlled epithermal veins centered on a rhyolite dome complex. “All holes cut anomalous silver mineralization, with a best interval of 1.6m @ 353g/t Ag from 185.6m downhole, within a broader interval of 49m @ 43g/t Ag in hole BVF-18-05”.
  • Advance Gold Corp., started a second phase drilling program at its Tabasquena project in Zacatecas to test the La Tabasquena epithermal vein at a depth of 1,800m. Phase 2 will test below the gold discovery hole of phase 1. It also will test some of the potential feeder type targets and all of the veins below the oxide zone which goes down to an estimated 175 metres below surface.
  • Evrim Resources Corp., announced new trench and soil results from its Cuale project in Jalisco. Highlight results include the trench 2 which was extended from 29.4m to 184.1m with an average grade of 0.85 g/t Au, including 59.1m of 1.79 g/t Au, and including 21.6m of 4.18 g/t Au; Trench 4 , extended from 106.2m to 156.2m with an average grade of 9.57 g/t Au, including 64.6m of 20.85 g/t Au, and including 7.5m of 163.31 g/t Au; and Trench 5 which contains 174m of 0.62 g/t Au, including 70m of 1.16 g/t Au, and including 40m of 1.45 g/t Au. A soil grid with 200 metre spacing outlined a Au anomaly over the entire La Gloria prospect with grades >0.01 g/t Au of 2,300m by 800m with a central corridor of 1,700m by 300m >0.1 g/t Au extending north of the trenched area.  “The soil anomaly at higher elevation correlates with elevated silver, antimony, molybdenum, arsenic and low contents of manganese and zinc.  At lower elevations gold correlates with elevated copper, tellurium, arsenic, bismuth and iron”. “The new trench results expand the La Gloria zone to the northwest and the east with consistent gold mineralization.  Soil sampling indicates the La Gloria system footprint is measurably larger with the potential to host a significant deposit and/or additional mineralized centers within the La Gloria prospect”.   “The soil survey has a distinctive high sulphidation signature centred on a large gold in soil anomaly that is approximately 2,300 metres by 800 metres.  The results indicate a potential major system with significant upside for additional mineralized centers within the La Gloria prospect.”

ON MINING

  • Starcore International Mines Ltd., reported Q21 2018 results from its San Martin mine in Queretaro. Starcore milled 77,400 tonnes of 1.53 g/t Au and 49 g/t Ag to produce 3.3K Oz Au and 72.7K Oz Ag, with an all-in sustaining cost of US$ 1,215 for Eq Oz. Metallurgical recoveries were 88.1% for Au and 59.6% for Ag.
  • US Antimony Corporation, produced 131,184 Lb Sb and 1,244 short tonnes of zeolites in August 2018 and announced plans to increase its production of Sb, Au and Ag in Mexico. At its Wadley mine in San Luis Potosi, the general level will be reactivated by cleaning up the waste to provide access and transportation of the lower grade for the mill. At Sierra Guadalupe in Zacatecas, the Santa Monica drift will be restarted. The ore is primarily sulphides and can be upgraded to 60-70% Sb flotation concentrate at its Puerto Blanco Mill to make antimony tri-sulphide. At the Soyatal district in Queretaro, a buying program will be started to purchase direct shipping ore for its Madero smelter. The construction of the cyanide leach plant for the Los Juarez Au-Ag-Sb should allow pilot testing to commence during Q4 2018. The company also closed an agreement purchase, dismantle and transport an antimony plant from Reynosa, Tamaulipas. When installed, the equipment from the Reynosa plant will increase the capacity of the Madero Smelter in Coahuila to approximately 30,000,000 Lb per year of antimony oxide.

ON FINANCING

  • No relevant news.

 

ON RESOURCES AND DEVELOPMENT

  • SilverCrest Metals Inc., released drilling results from its Las Chispas project in Sonora and expanded the high grade at Babicanora Norte vein. Drill holes have intersected additional high-grade Ag-Au mineralization at Babicanora Norte vein which is located about 300m NE of Babicanora vein and apparently is connected with the Granaditas area which contains multiple veins to the southeast. The most significant results are 1.8 m of 15.11 g/t Au and 1,718 g/t Ag or 2,851 g/t Ag Eq, 1.6 m of 8.96 g/t Au and 1,078 g/t Ag or 1,750 g/t Ag Eq and 1.5 m of 4.22 g/t Au and 687 g/t Ag or 1 Kg Ag Eq. The drilling results of Babicanora Norte vein will be part of the upcoming updated resource which will include 8 of the 30 identified veins in the district.
  • Premier Gold Mines Limited, reported drilling results from the Rey de Oro deposit at its Mercedes mine in Sonora. Highlights results include hole UG-R018-013 which returned 12.64 g/t Au and 240.1 g/t Ag across 29.65 m (TW of 13.5 m), hole UG-R018-015 with 0.41 g/t Au and 3120.0 g/t Ag (91.0 oz/ton) across 1.52 m (TW of 1.06 m), and hole UG-R018-012 with 17.00 g/t Au and 321.0 g/t Ag across 1.1 m (TW of 0.8 m) and 4.47 g/t Au and 138.5 g/t Ag across 8.25 m (TW of 6.1 m). “Underground drilling at Rey de Oro consists of step-out and delineation drilling of this recently developed horizon. This drilling continues to intersect some of the widest vein intercepts on the property and demonstrate the potential to continue to extend the mine life at Mercedes”.
  • Aura Minerals Inc., provided an update at its Aranzazu mine in Zacatecas. Aura has obtained all the necessary permits and initiated the construction of the new tailings disposal system. “The Company expects the Aranzazu mine to achieve commercial production later this year and to achieve the average processing of 2,600 tonnes per day shortly thereafter”.
  • Candelaria Mining Corp., announced a PEA for its Pinos Gold project in Zacatecas. Highlight results from the PEA indicate an after tax net present value (NPV) of US$ 12M using a 5% discount rate, an after tax internal rate return (IRR) of 25%, and a 7 years life of mine with projected gold equivalent ounce (“GEO”) production of 89,000. The PEA includes a mineral resource estimate as of September 13, 2018. Measured resources (Dump) are 85,847 tonnes of 1.6 g/t Au and 83 g/t Ag for a total of 4,444 Oz Au and 229K Oz Ag. Indicated resources are 175,697 tonnes of 3.6 g/t Au and 47 g/t Ag for a total of 20.6K Oz Au and 268K Oz Ag. Inferred resources are 529,267 tonnes of 3.6 g/t Au and 48 g/t Ag for a total of 60.7K Oz Au and 811K Oz Ag. Average recovery for Au and Ag are 90 and 80% respectively. The company plans to have an annual production of 12,700 GEO with an overall average direct cash cost of %US 666 per GEO.
  • McEwen Mining Inc., reported that hopes to add 12 years of mine life at its El Gallo Complex in Sinaloa, combining mineralized sources from five locations that will be developed in two distinct process plant construction phases. McEwen plans to produce 47K Oz Au Eq per year.
  • Bacanora Lithium plc., announced plans to start the mine construction on its Sonora Lithium project in Sonora. $US 420M will be invested in the first phase and is expected to begin to operate in 2020.

ON DEALS AND CORPORATE ISSUES

  • Evrim Resources Corp., and First Majestic Silver Corp., agreed to exercise the Ermitaño and Cumobabi option agreements in Sonora. First Majestic has completed its 100% earn-in for both projects. First Majestic has paid $1.5M in cash to Evrim and has granted a 2% NSR in the case of Ermitaño project and 1.5% NSR in the case of Cumobabi project.
  • New Gold Inc., announced the appointment of its new President and CEO (Cerro San Pedro mine, San Luis Potosi).
  • Levon Resources Ltd., released results from its annual general meeting (Cordero project, Chihuahua).
  • Vangold Mining Corp., withdrew its submission to the TSX Venture Exchange to acquire the San Carlos property in Guanajuato.

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

On the picture above, a banded quartz vein in an intermediate sulphidation epithermal project in Zacatecas, Mexico.  Photo by Miguel A Heredia.

Highlights on the First Week of September, 2018. Mining and Exploration News in Mexico

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By Jorge Cirett

During the 36th week of the year (September 3rd to September 9th, 2018), at least 18 press releases were announced by companies working in Mexico. Prize Mining, Minaurum, Azure, and Kootenay released advances in exploration. Telson Mining released some clarifications to its operating Q2 2018 results. Prospero reported news on financing. Goldplay, Consolidated Zinc, Torex, Southern Silver, Impact Silver, Magellan Gold, and Aura Minerals reported on development of its properties. Golden Minerals, Sonoro and GoGold reported deals on properties or royalties. ON MEXICO ISSUES, AMLO announced cabinet posts in Economy, including the new Sub-secretary of Mining, Francisco Quiroga. The Mexican Core Shack now counts with displays from three properties in Chihuahua, two in Durango, two in Estado de Mexico, one in Guerrero and one in Puebla. ON EXPLORATION, In Sonora, Minaurum has resumed drilling at its Alamos Silver property. Azure reported high-grade surface results from its Oso Negro property and Kootenay released surface sampling results from its Malé project. In Coahuila Prize Mining announced a coming drill campaign on its Manto Negro project.  ON MINING Telson Mining presented some clarifications on its Q2 report, and some figures on production costs from the Campo Morado mine.  ON FINANCING, Prospero Silver announced a strategic investment by Fortuna Silver for US$270 K. ON RESOURCES AND DEVELOPMENT, Goldplay released results from its San Marcial project in Sinaloa. Consolidated Zinc is to start mining in Plomosas, Chihuahua. Torex presented an updated technical report and a new mine plan on its El Limon-Guajes property in Guerrero. Southern Silver presented assay results from drilling at its Cerro Las Minitas property in Durango. Impact Silver announced the discovery of a new ore shoot on its Zacualpan property in Estado de Mexico. Magellan is planning to mine on its El Dorado property in Nayarit. Aura Minerals filed a FS and technical report on the restarting of its Aranzazu mine in Zacatecas. ON DEALS AND CORPORATE ISSUES, Golden Minerals sold its remaining interest on the Celaya property in Guanajuato to The Electrum Group for US$3 M. Sonoro optioned an inner concession within its Cerro Caliche property for US$100 K in two payments. GoGold sold its 2% NSR on the Santa Gertrudis project in Sonora to Metalla Royalty.

ON MEXICO ISSUES

  • Andres Manuel Lopez Obrador (AMLO), the president elect in Mexico, announced cabinet posts within the Secretaría de Economía (Bureau of Economy) for its incoming government. Graciela Márquez, as Secretary, is to be supported by Luz Maria de la Mora in Subsecretaría de Comercio Exterior (Foreign Commerce), Ernesto Acevedo Hernández in Subsecretaria de Industria y Comercio (Industry and Commerce), and Francisco Quiroga, on charge of the Subsecretaría de Minería (Mining). Francisco Quiroga was director of International Planning for Grupo Villacero, and worked for a couple of years at Arcelor Mittal México. He has master degrees from Yale and New Zealand, with expertise in international metal markets, steel, commodities and mining, as well as anti-dumping practices and industry. The Mexican Core Shack added images of drill core from Almaden’s Ixtaca project in Puebla, at https://gambusinoprospector.com/mexican-core-shack/puebla/ixtaca/ . The Mexican Core Shack now displays three properties in Chihuahua, two in Durango, two in Estado de Mexico, one in Guerrero and one in Puebla.

ON EXPLORATION

  • Prize Mining Corp. commenced the phase II exploration program on its Manto Negro project in Coahuila. This phase will consist of 3,000 m of diamond drilling, “3D modeling of drill intersections and artisanal underground workings”, a GIS compilation and preliminary metallurgical test work. At El Granizo, “strong copper mineralization is exposed on surface for a strike length of 550 metres and dips moderately to the southwest. Mineralization is hosted in the San Marcos red-bed sandstone close to the contact with the overlying Cupido limestone”. At Pilar Grande drilling will test a 200 by 50 m area containing the underground workings.
  • Minaurum Gold Inc. has resumed drilling at the Alamos Silver project in Sonora. The 5,000 m (or greater) drill program is to focus in seven untested veins exposed at high structural levels in down-dropped blocks outside of the historic mining corridor. “One hole will test the Minas Nuevas vein at depth and a second hole will test the Púlpito and Cotera vein zone projections. Eight more holes are planned on targets on the completely virgin eastern side of the historic La Quintera – Promontorio vein zone, including the Tigre, Ana, and Amalia vein zones, and the breccia body located south of Amalia and Tigre; as well as the Promontorio Sur vein zone to the south of Promontorio vein. The drill program will be expanded as new targets are generated.”
  • Azure Minerals Ltd. reported high grade assays from surface sampling at its Oso Negro property in Sonora. The project comprises a 1,119 ha concession application and an adjoining 156 ha concession purchased for US$35 K. Both concessions contain epithermal mineralization like quartz veins and quartz stockworks in zones of strong alteration, with galena and sphalerite within the quartz veins, which can attain widths of up to 5 m and lengths of 800 m. Of 88 samples collected, 37 returned over 100 g/t Ag, including 9 samples over 1,000 g/t Ag, and a peak of 2,680 g/t Ag. Of 88 samples collected, 37 samples returned over 1.0 g/t Au, including 7 samples over 5.0 g/t Au and up to 100.5 g/t Au.
  • Kootenay Silver Inc. released additional high-grade sampling results on its Malé project in Sonora. Thirty three sample collected from old pits and small trenches returned 19 samples with values over 1.0 g/t Au, with the highest running 12.1, 17.0, 24.7 and 36.0 g/t Au. “The Malé gold project is a granitic-hosted gold dominant polymetallic vein and vein stockwork system covering an area of 1500 x 1500 meters with numerous showings highly anomalous in gold…..Mineralization occurs as narrow veins, veinlets and stockworks of quartz with or without sulphides within structures projecting in a dominant northeast trend and a secondary northwest trend”.

ON MINING

  • Telson Mining Corp. presented some clarifications to its Q2 2018 financial report (please see press release for details). The “Campo Morado Mine has achieved direct site costs for mining, milling and administration during Q2 of approximately US$56.6, US$51.6 and US$51.8 per tonne respectively for, April, May and June. These current direct site costs are approximately 36% lower than the estimated direct site costs of US$72.26 per tonne used for the same categories in Telson’s recently published independent Preliminary Economic Assessment and approximately 40% lower than the previous operator’s last year of production during 2014”.

ON FINANCING

  • Prospero Silver Corp. arranged a US$270 K strategic investment from Fortuna Silver Mines Inc. Fortuna currently owns 20.3% of Prospero current and outstanding shares, and this private placement is to take that proportion to 26.9%. The proceeds will be allocated to test the Bermudez project in Chihuahua with a 3-hole 1,500 m drill program.

ON RESOURCES AND DEVELOPMENT

  • Goldplay Exploration Ltd. disclosed additional results from sampling of the historical core drill holes completed in 2011 on the project San Marcial, in Sinaloa. Highlighted true width (TW) new results from two holes comprise 53.6 m @ 57 g/t Ag, 0.1% Pb, 0.4% Zn (including 5.6 m @ 253 g/t Ag, 0.2% Pb, 0.6% Zn); 46.5 m @ 57 g/t Ag, 0.3% Pb, 0.4% Zn (including 15.5 m @ 115 g/t Ag, 0.5% Pb, 0.7% Zn, same that include 3.25 m @ 411 g/t Ag, 1.9% Pb, 2.2% Zn).
  • Consolidated Zinc Ltd. is to start mining at its Plomosas project in Chihuahua. “The CZL Board has approved the development plan and mining will commence immediately with monthly receipts commencing mid October 2018”. CZL secured a finance package by way of convertible notes. The mined ore will be processed at Grupo Mexico’s plant in Santa Eulalia, Chihuahua, and the concentrate is to be sent to the same group’s smelter in San Luis Potosi. CZL “is confident that the first cashflow can be achieved for a capital cost less than US$500,000 and the C1 operating costs are expected to be less than US$0.50/lb Zinc after by-product credits”.
  • Torex Gold Resources Inc. completed an updated technical report that includes a life of mine plan (LOM) of nine years and an increased average gold production of 430 K Oz Au per year, from 2019 to 2023 at its Limón-Guajes mine in Guerrero.” The TR also contains an updated Media Luna Preliminary Economic Assessment (PEA), with an after-tax NPV (5%) of $582M, and an after-tax IRR of 27%”.  El Limon Guajes updated TR, Sept 20181
  • Southern Silver Exploration Corp. reported assay results from initial core drilling on the 12,000 m 2018 drill program at its Cerro Las Minitas property in Durango. Highlighted true width (TW) intervals comprise 15.1 m @ 280 g/t Ag, 0.18% Cu, 0.9% Pb, 0.1% Zn (including 4.4 m @ 598 g/t Ag, 0.4% Cu, 2.1% Pb, 0.1% Zn) on the Skarn Front deposit, and 0.6 m @ 79 g/t Ag, 0.4 g/t Au, 1.2% Cu, 0.1% Pb, 14.1% Zn; 2.0 m @ 88 g/t Ag, 0.3 g/t Au, 0.2% Cu, 1.1% Pb, 2.6% Zn in Las Victorias zone, which extend mineralization for over 100 m to the southeast.
  • Impact Silver Corp. announced the discovery of a new ore shoot on the Lipton vein of the Guadalupe mine at its Zacualpan property in Estado de Mexico. To date the new zone has been drilled over a length of 120 m and vertical distance of 80 m, remaining open in all directions. Some of the highlighted true width intervals comprise 10.57 m @ 201 g/t Ag, 0.13 g/t Au, 0.2% Pb, 0.5% Zn (including 4.18 m @ 381 g/t Au, 0.09 g/t Au, 0.4% Pb, 1.1% Zn); 7.74 m @ 466 g/t Ag, 0.13 g/t Au, 0.5% Pb, 1.1% Zn; 8.82 m @ 306 g/t Ag, 0.11 g/t Au, 0.2% Pb, 0.5% Zn; 1.53 m @ 240 g/t Ag, 0.04 g/t Au, 0.7% Pb, 2.5% Zn; 2.87 m @ 308 g/t Au, 0.19 g/t Au, 0.3% Pb, 0.4% Zn.
  • Magellan Gold Corp. is focused on advancing El Dorado project in Nayarit towards production, planning to truck the ore to the SDA mill for processing. “The drilled resource appears to be sufficient to support an underground mining operation for five years at a mining rate of 100 tonnes per day….”. Magellan is applying for the necessary environmental and blasting permits, as well as quotes for contract mining.
  • Aura Minerals Inc. filed the NI-43-101 Feasibility Study and Technical Report on the Aranzazu mine in Zacatecas.

ON DEALS AND CORPORATE ISSUES

  • Golden Minerals Co. has sold its remaining interest on the Celaya property in Guanajuato, to The Electrum Group LLC. Golden Minerals is to receive a payment of US$3.0 M for selling 100% of its remaining mining concessions and related interests in the Celaya project located in Guanajuato.
  • Sonoro Metals Corp. optioned from a private owner the 9 ha “El Colorado” mining concession, within its Cerro Caliche project in Sonora. “The Option Agreement provides for Sonoro to acquire a 100% interest in El Colorado for total consideration to the Vendor of US$100,000, of which US$50,000 has been paid and the balance due in 6 months”. Seven thorough-going veins surrounded by quartz sotckwork areas and sheeted quartz veinlet zones present limited mining evidenced by tunnels, pits and trenches.
  • Metalla Royalty & Streaming Ltd. entered with GoGold Resources Inc. into an agreement to purchase a 2% net smelter return royalty on the Santa Gertrudis property in Sonora, for US$12 M in cash. The agreement is subject to a right of first refusal held by the owner of the project, Agnico Eagle Mines Ltd., right that has to be exercised with 45 days.

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

On the image above, argillitized volcanic rocks above the famous Vizcaína vein in the Pachuca District, Hidalgo. Picture by Jorge Cirett.