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

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

ON MEXICO ISSUES

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

ON EXPLORATION

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

ON MINING

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

ON FINANCING

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

ON RESOURCES AND DEVELOPMENT

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

ON DEALS AND CORPORATE ISSUES

  • No Relevant News.

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

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

BlackCopper

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

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

ON MEXICO ISSUES

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

ON EXPLORATION

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

ON MINING

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

ON FINANCING

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

ON RESOURCES AND DEVELOPMENT

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

ON DEALS AND CORPORATE ISSUES

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

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

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

DSC00863c - copia

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

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

ON MEXICO ISSUES

  • No relevant news.

ON EXPLORATION

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

ON MINING

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

ON FINANCING

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

ON RESOURCES AND DEVELOPMENT

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

ON DEALS AND CORPORATE ISSUES

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

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

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

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

During the 38th week of the year (September 18th to September 24th, 2017), at least 26 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, Primero Mining acknowledged the receipt of US$4.6 M of VAT refunds. ON EXPLORATION, in Sonora, Azure is to begin a 5,000 m drill program at Oposura, and San Marco is re-shaping its exploration strategy in Chunibas, to reflect the new porphyry model for the mineralization. In Chihuahua, Radius is giving shape to a coherent epithermal target at its Amalia project, and Mammoth released trench results from its Tenoriba property. In Hidalgo, Prospero is to start drilling at El Petate. ON MINING, Argonaut poured the first gold from its San Agustin project in Durango. Primero Mining is struggling while ramping up production at San Dimas, in Durango. ON FINANCING, Telson Resources entered into a loan facility for US5 M with Trafigura. McEwen Mining entered into a bought deal financing for US$46.6 M. Alamos Gold increased its revolving credit facility to US$400 M ON RESOURCES AND DEVELOPMENT; Americas Silver released a new resource estimate for its Cosalá operations in Sinaloa. Torex Gold released high-grade intercepts from the sub-sill zone at its El Limon-Guajes mine in Guerrero. Argonaut Gold updated mineral the mineral resource estimate for its La Colorada and El Castillo mines in Sonora and Durango, respectively. Alio Gold received an important permit on its Ana Paula project in Guerrero, and is working on the definitive feasibility study (DFS). ON DEALS AND CORPORATE ISSUES, Rose Petroleum presented an update on its operations in Sinaloa, and some notes on the transferal of its San Dieguito mill in Nayarit to Magellan Gold. Alio Gold is to commence the construction of a 1,200 m long decline at its Ana Paula project in Guerrero. Primero Mining provided an update on its operations, along with a description of its financial struggle. Soleil Capital and Goldplay Exploration are to create a TSX listed company. Goldgroup Mining provided its side of the story on the legal battle with DynaResource Inc.

ON MEXICO ISSUES

  • Primero Mining Inc. acknowledged having received US$4.6 M in VAT refunds from the Mexican authorities in two installments over July and August, and is working closely with the SAT to recover in due time the outstanding US$32 M.

ON EXPLORATION

  • Azure Minerals Ltd. plans to start a 100 diamond hole, 5,000 m drill program at its Oposura property in Sonora during October, once the permits have been received. “Drilling by previous explorers of 85 surface holes tested the mineralised zone over an area of approximately 1,400m (east-west) x 400m (north-south) (see Figure 1). Early drilling by Azure will twin some of these historical holes to assess whether they can be used in defining the deposit and estimating the mineral resource”. With all the historical and recent work compiled Azure has derived an exploration target of 2.5 M tonnes @ 10% – 12% Zn+Pb.
  • Prospero Silver Corp. has received from SEMARNAT the permit to drill the Petate property in Hidalgo. Drilling is to start on September 17th, 2017, with 12 holes to test four targets: Apartadero SE, Apartadero Central, Tajo and Petate #3. “High-level epithermal alteration is exposed over a 5×4 km area with highly anomalous gold and silver hosted in extensive outcrops and float of steep to strata-bound jasperoid.”
  • Radius Gold Inc. released high-grade channel sampling results from the recently optioned Amalia property in Chihuahua. At the Campamento zone, where a 150 m by 300 m zone of intense silicification, brecciation and stockwork veining has been mapped, results include 62 m @ 0.43 g/t Au, 98 g/t Ag; 14 m @ 1.47 g/t Au, 167 g/t Ag; including 7 m @ 2.37 g/t Au, 239 g/t Ag. At the Guadalupe target, a quartz sulfide vein breccia hosted in andesites returned 7 m @ 3.62 g/t Au, 1,048 g/t Ag; 7 m @ 2.4 g/t Au, 188 g/t Ag; 4 m @ 3.92 g/t Au, 888 g/t Ag. At Dulces Nombres the vein in a short tunnel returned 1 m @ 34 g/t Au, 13 g/t Ag; 1 m @ 20.3 g/t Au, 44 g/t Ag; 1.5 m @ 114.5 g/t Au, 57 g/t Ag. Au-Ag mineralization occurs over a vertical interval of 600 m, at multiple targets over 3.5 km of strike length.
  • Mammoth Resources Corp. released channel sample results from 14 trenches at its Tenoriba project in Chihuahua. Results include (true width) 11.5 m @ 0.64 g/t Au, 2 g/t Ag; 16.0 m @ 0.38 g/t Au, 4 g/t Ag; 15.5 m @ 0.99 g/t Au, 6 g/t Ag in the Moreno zone; 7.0 m @ 1.28 g/t Au, 8 g/t Ag; 13.5 m @ 1.50 g/t Au, 3 g/t Ag; 10.0 m @ 0.42 g/t Au, 7 g/t Ag; 6.2 m @ 0.88 g/t Au, 4 g/t Ag at the Carneritos zone; 13.1 m @ 0.66 g/t Au, 1 g/t Ag; 6.4 m @ 0.47 g/t Au, 10 g/t Ag in the Masuparia zone and 6.4 m @ 0.54 g/t Au, 2 g/t Ag in the Cerro Colorado zone.
  • San Marco Resources Inc. is readjusting its exploration strategy to accommodate an evolving geologic model on its Chunibas project in Sonora. The discovery of breccias in the recent core drilling program led to re-mapping and re-logging of the core, and the generation of a larger porphyry related breccia gold model with over printing epithermal quartz-carbonate veining. The surface mineralized footprint is 3 km x 1.5, and still open. The gold mineralization occurs disseminated and vein controlled. The re-logging of the core highlighted an 88 m breccia interval @ 0.37 g/t Au, and several drill holes present magnetite bearing potassic alteration associated with elevated gold grades. To test the property under the new model a magnetic survey is to be undertaken, along with the extension of some soil lines and deeper drill holes.

ON MINING

  • Argonaut Gold Inc. announced the first pour of gold at San Agustin, Durango, as scheduled. Impressive is the claim by the company of having had no lost time accidents during the 10 months construction period.
  • Primero Mining Corp. informed that the expected ramp-up production following successful negotiations with unionized workers has been significantly delayed due to persistent issues with underground equipment reliability, which has impacted development rates and stoping activities. As a result the production guidance has been lowered to 75 K to 85 K Oz AuEq at total cash costs of between $800 and $900 per AuEq Oz and all-in sustaining cost (AISC) of $1,050 to $1,150 per Au Oz.

ON FINANCING

  • Telson Resources Inc. has entered into a loan facility and offtake agreements with Trafigura Mexico, S.A. de C.V., to sell 100% of the lead and zinc concentrate produced at its Campo Morado mine in Guerrero. The US$5 M loan has a three-year term with a six-month grace period followed with 30 repayment installments. The loan facility matures on September 2010 and bears interest at rate equal to LIBOR (3M) plus 5%.
  • McEwen Mining Inc. has entered into an agreement on a bought deal basis under which up to 9 M shares are to be purchased, for gross proceeds of $46.6 M, before deducting underwriting commissions and estimated offering expenses. If all the associated warrants are exercised before the two year expiration date aggregate proceeds are to reach US$74 M.  (El Gallo, Sinaloa).
  • Alamos Gold Inc. has secured amendments to its existing undrawn revolving credit facility, including an increase of the facility from US$150 M to US$400 M on more favourable terms (Mulatos, La Yaqui; Sonora).

ON RESOURCES AND DEVELOPMENT

  • Americas Silver Corp. released an updated mineral reserve and resource estimate for its Cosalá operations in Sinaloa. Proven and probable mineral reserves stand at 4.0 M tonnes @ 100 g/t Ag, 0.02% Cu, 1.6% Pb, 3.9% Zn; Measures and indicated resources include 8.0 M tonnes @ 128 g/t Ag, 0.24% Cu, 0.5% Pb, 1.2% Zn; Inferred mineral resources include 4.1 M tonnes @ 147 g/t Ag, 0.33% Cu, 0.6% Pb, 1.0% Zn. The updated estimate reflects the drilling programs conducted at the property between January 2016 and the end of June 2017.
  • Torex Gold Resources Inc. released high-grade intercepts in the step-out drilling to the NW of the current Sub-Sill resource area, at its El Limon-Guajes mine in Guerrero. Some highlighted core length intercepts comprise 19.3 m @ 41.4 g/t Au, 43 g/t Ag, 2.1% Cu; including 5.6 m @ 69.8 g/t Au, 57 g/t Ag, 1.7% Cu; 35.9 m @ 5.7 g/t Au, including 3.5 m @ 32.2 g/t Au and 3.5 m @ 14.1 g/t Au; 4.8 m @ 8.5 g/t Au, 20 g/t Ag, 1.2% Cu; 6.1 m @ 15.7 g/t Au. A 240 m step-out drill hole intercepted 3.6 m @ 11.6 g/t Au. These results confirm the potential for extending the current resource, already defined in an area of 250 m x 150 m. “The Sub-Sill area is located between the El Limon and El Limon Sur ore deposits and under the El Limon Sill. The Sub-Sill area occurs in the Mesozoic carbonate-rich Morelos Platform, which has been intruded by Paleocene granodiorite stocks, sills and dikes. Skarn-hosted gold mineralization is developed along the contacts of the intrusive rocks and the enclosing carbonate-rich sedimentary rocks”.
  • Argonaut Gold Inc. provided updated pit-constrained mineral resource estimates for its El Castillo and La Colorada mines in Durango and Sonora respectively. At El Castillo measured and indicated resources stand at 63.97 M tonnes @ 0.36 g/t Au, and inferred resources at 1.57 M tonnes @ 0.36 g/t Au, for contained 751 K Oz Au and 18 K Oz Au respectively. At La Colorada indicated resources stand at 29.87 M tonnes @ 0.61 g/t Au, 10 g/t Ag and inferred resources of 1.24 M tonnes @ 0.80 g/t Au, 12 g/t Ag, for contained 596 K OZ Au, 9.9 M Oz Ag and 32 K Oz Au, 488 K Oz Ag respectively.
  • Alio Gold Inc. received approval for its change of land use application from SEMARNAT on its Ana Paula project in Guerrero. A definitive feasibility study (DFS) was initiated on July 2017 and is expected to be completed on the second quarter of 2018. The Pre-feasibility study (PFS) contemplated $137 M in capital for construction of the mine, Alio has $64 M of cash on hand and is looking to raise between $90 and $100 M in project financing.

ON DEALS AND CORPORATE ISSUES

  • Rose Petroleum PLC. Entered into a memorandum of understanding with Magellan Gold Corp. for transferring 100% interest on the San Dieguito de Arriba mill in Nayarit. Magellan is to pay Rose a total consideration of US$1.5 M, with US$1.0 M in cash and US$0.5 M in Magellan restricted common shares. Rose operated the mill for 10 years with ore from its Charay mine in Sinaloa. The company continues to hold the 3,954 has Tango property in Sinaloa, with permitting for drilling Cu-Mo porphyry targets and the Au-Ag vein structure.
  • Alio Gold Inc. has approved the construction of a $16 M, 1,200 m long decline and exploration program at its Ana Paula project in Guerrero. The decline permitting has been approved by SEMARNAT, and mobilization of the contractor is expected to begin in October 2017. In about nine months, once the decline has reached its target, A 20,000 m underground drilling program with 80 holes is to test the high-grade mineralization below the planned pit.
  • Primero Mining Corp. “continues to operate in a cash conservation mode as management works on possible alternatives to refinance or repay its upcoming debt obligation. The Company continues with negotiations on the potential sale of San Dimas or potential renegotiation of its silver stream. Primero had approximately $12 million in cash at August 31st and has fully-drawn its $75 million revolving credit facility (“RCF”). The Company expects to use the proceeds from Black Fox transaction to reduce its total debt position.” “Primero has recently received approximately $4.6 million in Mexican VAT refunds over two instalments in July and August, and is working closely with SAT to arrange for the remaining eligible outstanding VAT amounts totalling $32 million to be refunded in due course.”
  • Soleil Capital Corp. signed a letter of intent (LOI) with Goldplay Exploration Ltd. to create a public TSX listed precious metals exploration company utilizing Goldplay’s exploration strategy and experience in the Rosario district, in Sinaloa. The resulting issuer will be named Goldplay Exploration Ltd.
  • Goldgroup Mining Inc. states that the company was never notified of the court case where DynaResource Inc. was awarded US$48 M (See last week Highlights), and does not recognize any of the claims therein “and is of the belief that such claims are entirely without merit.”

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

On the picture below, high-grade gold milky quartz vein with pyrrothite in Chihuahua, near Batopilas. Photo by Jorge Cirett.

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

During the 37th week of the year (September 11th to September 17th, 2017), at least 27 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, Mexican fiscal authorities and Canadian mining companies maintain dialog on delayed tax reimbursements for $360 M. ON EXPLORATION, in Sonora, Canuc released results on phase I of drilling at is San Javier project, while SilvercCrest informed on phase II drill results from the Babicanora vein on its Las Chispas property. In Veracruz, Almadex disclosed results from one more hole from the Norte zone of its El Cobre property. In Durango Golden Minerals is to drill test its Mogotes project. ON MINING, MX Gold is on track to complete plant expansion, and presented results from metallurgical tests at Magistral, in Durango. Mexus Gold and MarMar Holdings announced first dore production at Santa Elena, in Sonora. US Antimony presented an update on its Mexican operations in Guanajuato, Queretaro and Zacatecas. Impact Silver presented drill results from El Paso vein at its Zacualpan property in Estado de Mexico. Starcore presented financial results for the first quarter. ON FINANCING, Silver One, Southern Silver and Defiance Silver opened, extended or closed tranches of financing for $8.25 M. Minera Alamos and Leagold started trading in the US. ON RESOURCES AND DEVELOPMENT; Silver Bull released high-grade results from underground channel sampling at Sierra Mojada, Coahuila. Capstone announced good drill intercepts at Cozamin, Zacatecas. Americas Silver presented an update on development work at San Rafael in Sinaloa. Oceanus announced an updated mineral resource for El Tigre, in Sonora. Levon finished an infill drilling campaign at Cordero in Chihuahua. Mexican Gold filed at SEDAR the resource estimate for Cerro Las Minas, Veracruz. ON DEALS AND CORPORATE ISSUES, Endeavour Silver and Capstone are to share mining concessions in Zacatecas, on an arrangement based in the elevation of mineralization.

ON MEXICO ISSUES

  • Mexican fiscal authorities and Canadian mining companies maintain a table of dialog on delayed tax reimbursements for $360 M, according to José Antonio Meade (head of the IRS equivalent agency) and Bill Morneau (Canadian Finance minister). They pointed out at a joint press conference that the situation is to be solved by dialogue and under the legal framework, with the aim to avoid this situation to have an effect on Canadian investment in Mexico. Bill Morneau pointed out that the common objective is to keep Canadian companies taking opportunities in the mining sector; while Meade said that the intention is to create an adequate investment environment for companies to feel at ease, with confidence in Mexico as a country under the rule of law. According to the latter, 40% of Canadian investment in Mexico is on the mining sector.

ON EXPLORATION

  • Canuc Resources Corp. released results from the phase I drill program at its San Javier project in Sonora. A total of seven holes have been drilled on the Santa Rosa vein, over 430 m of strike length. The vein has been confirmed an all holes, remaining open in all directions. Drill intercepts include 4.35 m @ 202 g/t Ag, 0.57 g/t Au, 2.7% Pb, 2.6% Zn; 3.32 m @ 326 g/t Ag; 6.0 m @ 1.74 g/t Au; 1.0 m @ > 1,000 g/t Ag, 3.83 g/t Au, 8.2% Pb, 4.3% Zn; 0.80 m @ 270 g/t Ag, 1.79 g/t Au, 2.1% Pb, 0.8% Zn, the last two intercepts in two splays of a new vein. To note is the 43 m intercept of thin quartz and barite stringers containing disseminates and patchy sulfides, including galena and sphalerite. The stockwork is hosted by quartzite, conglomerate and siltstone.
  • SilverCrest Metals Inc. released phase II drill results from the Babicanora vein at its Las Chispas property in Sonora. True width intercepts in the Babicanora vein include 3.7 m @ 2.58 g/t Au, 333 g/t Ag; 3.6 m @ 0.14 g/t Au, 267 g/t Ag; 4.8 m @ 4.63 g/t Au, 251 g/t Ag; 0.5 m @ 4.78 g/t Au, 37 g/t Ag; 2.2 m @ 1.91 g/t Au, 139 g/t Ag; 1.9 m @ 0.29 g/t Au, 394 g/t Ag; 2.1 m @ 2.01 g/t Au, 160 g/t Ag. The average estimated true width and grade for 16 drill intercepts of the high-grade footprint is 4.0 m @ 2.88 g/t Au, 275 g/t Ag. The Babicanora vein has been traced on the surface for 3 km, of which SilverCrest has tested only 20% of that strike length.
  • Almadex Minerals Ltd. disclosed results from the last hole at the Norte zone, in its El Cobre project in Veracruz. The hole intersected 273.50 m @ 0.59 g/t Au, 0.21% Cu; including 206.7 m @ 0.74 g/t Au, 0.26% Cu;, which in turn include 151.0 m @ 0.88 g/t Au, 0.30% Cu. This hole was drilled between two other mineralized holes to test for continuity.
  • Golden Minerals Co. is to start a 1,500 m drilling program at its Mogotes property in Durango, on the third week of September 2017. The plan is to test 1.5 Km of silicification and breccias up to 500 m in width, partially controlled by a fault that juxtaposes Tertiary volcanic rocks with Cretaceous limestone. The zone is highly anomalous in arsenic and antimony, with erratic gold values of up to 1.8 g/t in surface rock samples.

ON MINING

  • MX Gold Corp. confirmed being on track for plant expansion on its Magistral tailings project in Durango. Although on a non-43-101 complaint basis, the company estimates 1.2 M tonnes @ 2.06 g/t Au, 3.9 g/t Ag, a recovery rate of 76% Au, 45% Ag at a production rate of 30 K tonnes per year, and a life of project of 3.5 years.
  • Mexus Gold US. Along with JV partner MarMar Holdings announced the production of the first dore from its Santa Elena mine in Sonora (not to mistake with First Majestic’s Santa Elena mine, also in Sonora). The ore currently being placed on the heaps averages 2 g/t Au, with an expected recovery rate of 76%. The goal is to bring production to 10,00 tonnes per day (tpd).
  • United States Antimony Corp. reported successful production of antimony tri-sulfide per military MIL-A-a59D specification. Additional equipment is being installed to enter the market. SEMARNAT is expected to approve the cyanide circuit at the Puerto Blanco mill in Guanajuato for Los Juarez property (Queretaro) within 30 days. Powder magazines are being built at Soyatal (Queretaro) and a reopening a road at Guadalupe (Zacatecas).
  • MX Gold Corp. performed metallurgical tests on samples from backhoe pits at its tailings Magistral project in Durango. The aim of the test was to confirm the results obtained by previous studies. Gold recoveries at the Met-Solve Lab in Surrey, BC, Canada, ranged from 72.4% to 89.9%, silver from 22.7% to 64.9% and copper form 14.9% to 54.4%.
  • Impact Silver Corp. disclosed assay results from a drilling on the El Paso vein, at its Zacualpan property in Estado de Mexico (Mexico State). The hole intersected 3.38 m (TW) @ 834 g/t Ag. Including 1.26 m @ 1,448 g/t Ag. A new vein was encountered further down hole, with 1.3 m of core length @ 199 g/t Ag. Other drill holes intersected 1.4 m @ 122 g/t Ag; 1.6 m @ 113 g/t Ag on El Paso vein, and a further down hole 1.58 m core length intercept @ 240 g/t Ag. The El Paso vein passes less than one kilometer from Impact’s Guadalupe mill, and has been traced on the surface for 2.1 Km from El Paso adit, with widths ranging up to 13 m in the El Capulin adit. Better access on the San Felipe workings is to be completed in order to prepare underground drill stations.
  • Starcore International Mines Ltd. reported financial results for the first quarter ended July 31, 2017. During the period 3.7 K Oz Au, 15.2 K Oz Ag were produced by milling 69.8 K tonnes of ore @ 1.97 g/t Au, 12.6 g/t Ag, with recoveries of 85.0% Au, 51.2% Ag at a cash cost of US$1,052 per gold equivalent ounce. Cash and short-term investment of CAD$7.4 M at the end of the period (San Martin mine, Queretaro).

ON FINANCING

  • Silver One Resources Inc. is to conduct a non-brokered private placement aiming to raise gross proceeds of up to $4 M (Peñasco Quemado, Sonora).
  • Minera Alamos Inc. has received approval for OTCQB listing in the United States (La Fortuna, Durango).
  • Southern Silver Exploration Corp. extended the final closing of its previously announced brokered private placement until September 29, 2017. In total, the company has closed two tranches for total gross proceeds of $3 M (Cerro Las Minitas, Durango).
  • Defiance Silver Corp. announced the closing of the first tranche of $1.25 M of a non-brokered private placement (San Acacio, Zacatecas).
  • Leagold Inc. commenced trading on the OTCQX® Best Market in the United States, on September 15th, 2017 (Los Filos, Guerrero).

ON RESOURCES AND DEVELOPMENT

  • Silver Bull Resources, Inc. released further assay results from channel sampling at its Sierra Mojada project in Coahuila. The channel sampling was continuous over the strike length of an east-west trending high angle structure on old mine workings, with the structure 2 to 3 meters in width in places. The 117 sample program results highlights a zone of sulfide mineralization 160 m below the surface with 94.5 m @ 9.7% Zn, 124 g/t Ag, 1.6% Pb, 0.46% Cu; including 31.5 m @ 22.4% Zn, 134 g/t Ag, 2.0% Pb, 0.2% Cu; 9.0 m @ 10.2% Zn, 21 g/t Ag; 10.5 m @ 432 g/t Ag, 1.1% Zn, 1.2% Cu (Note of editor for clarity.- The samples were not collected across mineralized widths).
  • Capstone mining Corp. announced drill results of step-out drilling at its Cozamin mine in Zacatecas. Four holes have been completed near the southern limit of Capstone’s concessions with Endeavour’s concessions (see recent deal details between both companies below), with Highlighted drill intercepts of (estimated true width, “TW”) 14.4 m @ 2.2% Cu, including 6.3 m @ 4.4% Cu; 15.0 m @ 1.0% Cu, 0.4% Zn, 0.1% Pb, 19 g/t Ag; 4.6 m @ 3.0% Cu, 0.5% Zn, nil Pb, 54 g/t Ag. This zone is almost 600 m along strike from Cozamin’s current indicated mineral resource.
  • Americas Silver Corp. informed on the Development of the San Rafael project, part of its Cosalá operations in Sinaloa. Development to the southern lobe of the Main Zone began in January, and ore is now mined from two development headings, with two levels being prepared for production. Ore from three additional headings will be added to the stockpile within the next week. The primary ramp to the bulk of the deposit is progressing, with 480 m of advance needed to reach the bottom of the Main Zone. Process plant modifications are progressing, with initial concentrate production from San Rafael expected before the end of September 2017.
  • Oceanus Resources Corp. announced an updated mineral resource estimate for its El Tigre property in Sonora. The resource includes two open pit and two underground operations at the El Tigre and Fundadora veins. The open pit operations contain 430 K Oz Au, 14.3 M Oz Ag and 73 K Oz Au, 9.6 M Oz Ag as indicated and inferred resources respectively. The underground resources carry 6 K Oz Au, 1.3 M Oz Ag; 38 K Oz Au, 9.1 M Oz Ag as indicated and inferred resources respectively. The total hard rock resource is 25.9 M tonnes @ 0.52 g/t Au, 19g /t Ag, containing 436 K Oz Au, 15.7 M Oz Ag and 6.6 M tonnes @ 0.52 g/t Au, 89 g/t Ag as indicated and inferred resources respectively. The tailings resource is 939 K tonnes @ 0.27 g/t Au, 78 g/t Ag, containing 8 K Oz Au, 2.3 M Oz Ag; 1 K Oz Au, 254 K Oz Ag as indicated and inferred resources respectively.
  • Levon Resources Ltd. completed 5,655 m of core drilling in 18 holes at its Cordero project in Chihuahua. “The 2017 holes were drilled to test for near surface, higher gold grades within multiple rhyolite intrusives that make up the volcanic Cordero Felsic Dome Complex, and higher grade mineralization in contact breccia bodies that could improve a starter open pit configuration in the southwest part of the Resource.” Assays are pending.
  • Mexican Gold Corp. filed at SEDAR the technical report on the mineral resource estimate for its Las Minas project in Veracruz. The report states an inferred resource of 719 K Oz AuEq contained in 10.3 M tonnes @ 2.17 AuEq and total measured and indicated resources of 304 K Oz Au in 4.97 M tonnes @ 1.90 g/t AuEq.

ON DEALS AND CORPORATE ISSUES

  • Endeavour Silver Corp. and Capstone Mining Corp. entered into an agreement under which Endeavour has the right to explore and mine for precious metals above 2,000 m elevation (meters above sea level, or “mas”) on Capstone’s the Toro del Cobre claim, adjacent to Endeavour’s Calicanto concessions in Zacatecas. Endeavour granted Capstone the right to explore and mine for base metals below the elevation of 2,000 m (mas). The deal was done on the understanding of mineralization zonation in the district, with precious metals mineralization over 2,000 m elevation and base metals occurring below that mark (Note of editor.- This type of deal is not common in Mexico, and reveals a “Think outside of the box” attitude by both companies).
  • Magellan Gold Corp. and Rose Petroleum PLC signed a definitive and binding stock purchase agreement on Magellan’s acquisition of the mineral processing mill operation in San Dieguito de Arriba, Nayarit. The purchase total consideration is US$1.5 M, consisting of $1.0 M in cash and $500 K in Magellan stock, of which $100 K in cash has already been paid. Magellan has arranged $900 K in irrevocable bridge loans in support of its option to purchase the 200 tpd mill.
  • Advance Gold Corp. is to acquire a 100% interest in the Tabasqueña silver mine in Zacatecas. Upon receipt of regulatory approval, Advance will issue Hot Spring Mining, a Mexican based corporation, 1 M common shares. Hot Spring is to retain a 2.5% NSR, of which Advance has the right to buy 1.5% at a rate of CAD$500 K per 0.5%.
  • Dyna Resources Mexico, S.A. de C.V. announced that it has received a favorable ruling with the dismissal by a court in Veracruz of Goldgroup Resources Inc.’s amparo trial challenge to the US$48 M damages award previously granted in favor of Dyna.
  • Orex Minerals Inc. was made aware that Canasil Resources Inc. has been named in a lawsuit brought by Pan American Silver Corp. with the BC Supreme Court, regarding the mineral claims making up the Sandra Escobar project in Durango. Orex earned 55% ownership on the project from Canasil, interest that could be impacted if Pan American Silver’s claim is proven.

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

On the picture below, the ignimbrites of the Sierra Madre in Chihuahua, near Batopilas. Photo by Jorge Cirett.

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

During the 36th week of the year (September 4th to September 10th, 2017), at least 22 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, no relevant news. ON EXPLORATION, in Sonora, Azure Minerals released drilling results from Oposura; Aztec Minerals updated on exploration of its Cervantes project and Riverside reported on mapping and sampling of the Glor project. In Durango, Chesapeake reported high grade trenching and rock sampling results from its Yarely project. ON MINING, Alamos Gold commenced gold production at La Yaqui, Sonora, and MX Gold is on track to complete plant expansion at Magistral, in Durango. ON FINANCING, Colibri closed the first tranche of a non-brokered private placement, for gross proceeds of $640 K. ON RESOURCES AND DEVELOPMENT; Consolidated Zinc updated the mineral resources estimate at Plomosas, Chihuahua. Sierra Metals released interesting results from definition drilling at Bolivar, Chihuahua. Agnico Eagle updated on exploration at La India, in Sonora, and El Barqueño, in Jalisco. Excellon released high-grade results near mining operations at Platosa in Durango. Southern Silver reported more drilling results from Cerro Las Minitas, Durango. Almadex Minerals released drilling results from El Cobre in Veracruz. Golden Minerals is to drill extensions of the Santa Maria vein in Chihuahua. Oceanus released channel sample results from old mining workings on El Tigre property in Sonora. ON DEALS AND CORPORATE ISSUES, GoGold Resources entered into an agreement to sell its Santa Gertrudis project in Sonora to Agnico Eagle for $80 M. Discovery Metals appointed Peter Drobeck as Vice-President Exploration. Oroco Resource entered into a mineral exploration agreement with Auracle Geospatial Science.

ON MEXICO ISSUES

  • No Relevant News.

ON EXPLORATION

  • Azure Minerals Ltd. released results from drilling completed by the previous owners, confirming significant widths of high-grade Zn-Pb-Ag mineralization at its Oposura project in Sonora. Length of hole intercepts include 4.4 m @ 7.4% Zn, 5.6% Pb, 0.12% Cu, 18 ppm Ag; 2.40 m @ 4.3% Zn, 3.4% Pb, 15 g/t Ag; 9.30 m @ 7.9% Zn, 3.4% Pb, 0.4% Cu, 32 g/t Ag; 2.50 m @ 8.9% Zn, 5.6% Pb, 1.0% Cu, 27 g/t Ag; 7.40 m @ 7.8% Zn, 5.9% Pb, 0.11% Cu, 22 g/t Ag: 3.85 m @ 5.3% Zn, 6.1% Pb, 0.13% Cu, 18 g/t Ag; 3.40 m @ 6.8% Zn, 7.1% Pb, 0.61% Cu, 23 g/t Ag; 2.50 m @ 8.3% 5.7% Pb, 0.24% Cu, 24 g/t Ag; 6.65 m @ 16.5% Zn, 2.3% Pb, 0.51% Cu, 107 g/t Ag. Substantial widths of massive and banded sulfide were hit on most holes, with all mineralization fresh and non-oxidized. Azure has submitted an application for a resource drill-out program covering an area of 1,400 m x 400 m, and a wider exploration program. Note by editor.- This property was subject to a non-conclusive debate back in the 1980’s regarding its origin, either a volcanogenic massive sulfide  (would be the first in Sonora) or a skarn originated by felsic dikes intruding intracaldera sediments, including the hosting thin layered limestone. It’s going to be interesting what Azure’s take on the deposit’s origin is.
  • Aztec Minerals Corp. released assay results from sampling on two trenches at the Jasper prospect on the Cervantes property in Sonora. The Peñasco trench returned 20 m @ 0.89% Cu (0.35% to 1.39% Cu), 0.69 g/t Au (0.05 to 2.95 g/t Au), while the Cardon trench, 30 m to the north, returned 10.85 m @ 0.76% Cu (0.35% to 1.05% Cu), 0.30 g/t Au (0.09 to 0.78 g/t Au). The Jasper prospect is within siliceous hornfels, quartzites, argillites and the same altered quartz feldspar porphyry intrusive rocks as the California prospect, but at a lower elevation. New trenching is underway.
  • Riverside Resources Inc. reported mapping and rock-chip sampling on the Alamo target of its Glor project in Sonora, funded by partner Centerra Gold Inc. Mapping outlined extensive outcrops of andesite volcanic rocks and a number of shear structures inclined at low angles, displaying orogenic-style rock alteration and quartz and carbonate veining. “Gold assays for 11 of the samples ranged between 0.338 and 24.0 g/t Au”.
  • Chesapeake Gold Corp. assembled a land package of 68,000 contiguous hectares at the Yarely project in Sinaloa, adjacent to Chesapeake’s Metates project in Durango. A 186 Km of induced polarization (IP)-resistivity geophysical survey defined a 6 km long anomaly, up to 600 m in width and over 300 m in depth; anomaly that coincides with two mineralized corridors. Work to date includes trenching and 2,500 rock samples on the Central, Loretos, Yazmin, Sundae, Lucy and Los Mimbres prospects. These prospects have distinct mineralization styles, including, skarns, veins, stockworks and breccias hosted in sedimentary, metasedimentary and intrusive rocks. Rock chip and channel sample results include 2 m @ 19.5 g/t Au, 505 g/t Ag; 2 m @ 14.0 g/t Au, 185 g/t Ag; 3 m @ 1.1 g/t Au, 805 g/t Ag; 11.0 m @ 1.1 g/t Au, 42 g/t Ag; 14 m @ 1.5 g/t Au, 143 g/t Ag; 65 m @ 0.5 g/t Au, 12 g/t Ag; 33 m @ 81 g/t Ag; 374 m @ 0.12% Zn; 10 m@ 73 g/t Ag; 17 m @ 0.8 g/t Au, 10 g/t Ag; 7 m @ 117 g/t Ag, 1.1% Cu, 1.4% Zn; 7 m @ 0.4 g/t Au, 44 g/t Ag; 31 m @ 0.3 g/t Au, 14 g/t Ag. Drilling is to commence in 3-4 weeks on the Central and Loretos prospects.

ON MINING

  • Alamos Gold Inc. announced that gold production has commenced at its La Yaqui project in Sonora, with the pour of 410 Oz Au. The first phase of construction is substantially complete, on budget and ahead of schedule. La Yaqui is a heap leach operation 7 km from the Mulatos mine, and is expected to produce 25 K Oz Au per year.
  • MX Gold Corp. in its JV with GracePoint Mining Corp. reported that contractor Componentes Mineros S.A. de C.V. is on track for completion of the plant expansion to 1,000 tonnes per day at the Magistral tailings project in Durango.

ON FINANCING

  • Colibri Resource Corp. closed the first tranche of its previously announced non-brokered private placement, with aggregate gross proceeds of $640 K, and $29.6 K paid on finders fees (Pilar, Pitaya projects in Sonora).

ON RESOURCES AND DEVELOPMENT

  • Consolidated Zinc Ltd. updated the mineral resource estimate for its Plomosas project in Chihuahua. There are 158 K tonnes as indicated resources @ 18.2% Zn, 6.4% Pb, 43 g/t Ag and 810 K tonnes @ 10.9% Zn, 3.3% Pb, 20 g/t Ag that contain 117 K tonnes Zn, 37 K tonnes Pb, 748 K Oz Ag. This estimate represents a 70% increase in tonnage and 60% increase on contained metal over the previous estimate. Metallurgical studies from the Tres Amigos sulfide zone indicate Zn recoveries over 90%.
  • Sierra Metals Inc. released assay results from definition drilling at the Bolivar West zone, adjacent to the Bolivar mine in Chihuahua. The 28 hole, 12,300 m program covered an area 300 m long and 180 m wide. True width intercepts include 9.2 m @ 69 g/t Ag, 2.3% Cu, 2.0% Zn; 7.4 m @ 0.1 g/t Au, 42 g/t Ag, 1.3% Cu, 1.4% Zn; 15.6 m @ 0.33 g/t Au, 41 g/t Ag, 1.4% Cu, 0.8% Zn; 18.0 m @ 37 g/t Ag, 1.8% Cu; 12.6 m @ 0.1 g/t Au, 133 g/t Ag, 1.4% Cu, 0.7% Zn; 8.7 m @ 68 g/t Ag, 1.9% Cu; 13.5 m @ 48 g/t Ag, 2.2% Cu; 11.2 m @ 47 g/t Ag, 2.4% Cu, 0.7% Zn; 17.6 m @ 488 g/t Ag, 1.9% Cu, 1.5% Zn; 18.0 m @ 12 g/t Ag, 1.3% Cu, 1.0% Zn; 13.9 m @ 50 g/t Ag, 2.0% Cu, 0.1% Zn; 15.8 m @ 50 g/t Ag, 1.2% Cu. The mineralization is located 450 m below the surface, with an average grade of 2.55% CuEq and an average true width of 9.1 m.
  • Agnico Eagles Mines Ltd. announced exploration results on its properties, including information on its Mexican operations. At La India in Sonora, 19,790 m were drilled in 182 holes in 2017, extending near-pit mineralization and other near-mine targets. Drilling at the Main zone intersected 37.7 m @ 0.88 g/t Au, 24.8 m @ 1.15 g/t Au, 39.0 m @ 0.71 g/t Au. At El Realito target intersected 7.3 m @ 9.5 g/t Au, 36 g/t Ag; 29.3 m @ 0.82 g/t Au; and 40.3 m @ 1.4 g/t Au, 67 g/t Ag at La Chipriona. At El Barqueño in Jalisco, drilling extended the Cuauhtemoc-Azteca-Zapoteco system to 3.4 km. Recent results in Far west include 5.7 m @ 6.3 g/t Au, 45 g/t Ag. From January to July 2017, 30,699 m of drilling in 91 holes were completed.
  • Consolidated Zinc Ltd. informed the scoping study on its Plomosas property in Chihuahua is due this month. The study is increasingly focused on the Tres Amigos and Las Espadas, where good metallurgical results and increases in resources have taken place. “Consolidated Zinc will carry out further drilling in 2017 and 2018 in a bid to further increase the resource, …. at Las Espadas, Carola South, Level 7 and Tres Amigos”.
  • Excellon Resources Inc. released drilling results from its current program at its Plomosas mine, in Durango. The program highlighted the discovery of mineralization near mine workings, with intercepts greater than 1 kg/tonne Ag in 8 of 11 holes over 5.7 m average core length. Drill intercepts include 3.2 m @ 1,366 g/t Ag, 7.9% Pb, 13.6% Zn; 3.6 m @ 2,291 g/t Ag, 15% Pb, 13.3% Zn; 11.1 m @ 0.1 g/t Au, 1,204 g/t Ag, 9.3% Pb, 13.4% Zn; 5.2 m @ 0.2 g/t Au, 2,079 g/t Ag, 14.2% Pb, 23.9% Zn; 2.6 m@ 864 g/t Ag, 5.0% Pb, 6.9% Zn; 5.6 m @ 521 g/t Ag, 5.0% Pb, 8.6% Zn; 8.0 m @ 612 g/t Ag, 9.4% Pb, 4.6% Zn. These holes define a 100 by 25 m zone connecting and expanding the 623 manto and the Guadalupe South manto, currently in production.
  • Southern Silver Exploration Corp. reported the intersection of the down-dip projection of two mineralized zones at the Las Victorias target in its Cerro Las Minitas project in Durango. Mineralized intercepts include 12.5 m @ 154 g/t Ag, 2.0 g/t Au, 0.2% Cu, 3.2% Pb, 3.9% Zn; 6.8 m @ 194 g/t Ag, 0.80 g/t Au, 0.1% Cu, 4.4% Pb, 2.0% Zn on the upper zone, and 10.0 m @ 182 g/t Ag, 1.0 g/t Au, 0.5% Cu, 1.6% Pb, 6.4% Zn; 9.2 m @ 220 g/t Ag, 0.3% Cu, 3.6% Pb, 5.4% Zn; 13.0 m @ 105 g/t Ag, 0.1% Cu, 0.5% Pb, 0.4% Zn. “Approximately 13,400 metres in 18 drill holes have now been completed in the planned US$2 million 2017 exploration program”.
  • Almadex Minerals Ltd. released results from one more hole at the Norte zone at its El Cobre project in Veracruz. The drill hole intersected high-grade mineralization and intense stockwork veining and potassic alteration. The hole intersected 308.5 meters @ 0.39 g/t Au, 0.20% Cu, including 159.0 m @ 0.61 g/t Au, 0.25% Cu, and 101.0 m @ 0.81 g/t Au, 0.32% Cu and 60.7 m @ 0.95 g/t Au, 0.37% Cu. The drill hole is 200 m NW from previously known mineralization.
  • Golden Minerals Co. announced the start of a new drilling program at its Santa Maria project near Santa Barbara, Chihuahua. A recently optioned claim on the east of the property provides up to 600 m of strike length of the vein to test. The program aims to increase the current resource by testing the western and eastern limits of the vein. The two drill holes completed to date have intersected the vein with visible mineralization, results pending.
  • Oceanus Resources Corp. reported assay results from channel samples collected on old workings from the Protectora, Caleigh and Fundadora veins on its El Tigre project in Sonora. Results include: In the Fundadora workings 5.2 m @ 14.7 g/t Au, 360 g/t Ag, including 1.7 m @ 43.5 g/t Au, 1,039 g/t Ag; at the Caleigh workings 0.5 m @ 25.5 g/t Au, 1,704 g/t Ag; 1,0 m @ 2.1 g/t Au, 113 g/t Ag; at the Protectora workings 1.25 m @ 1.6 g/t Au, 308 g/t Ag; 1.50 m @ 2.1 g/t Au, 113 g/t Ag.

ON DEALS AND CORPORATE ISSUES

  • GoGold Resources Inc. entered into a definitive agreement with Agnico Eagle Mines Ltd. to sell its interest on the Santa Gertrudis project in Sonora for US$80 M, retaining a 2% NSR of which Agnico can buy back 1% for US$7.5 M. Agnico will advance GoGold US$7.5 M in cash via a subordinated secured term loan. The transaction is expected to close in the fourth quarter of 2017.
  • Discovery Metals Corp. announced the appointment of Peter Drobeck as Vice-President Exploration. Peter Drobeck has in his career, besides multiple international posts, decades of exploration experience in Mexico.
  • Oroco Resource Corp. entered into a mineral exploration agreement with Auracle Geospatial Science Inc., “a highly advanced remote sensing provider”. “It should also be made clear at this time that Oroco intends to utilize the Auracle technology to extend its reach into Mexico beyond the scope of its Xochipala project”

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

On the picture below, the ignimbrites of the Sierra Madre in Chihuahua, near Batopilas. Photo by Jorge Cirett.

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

During the 35th week of the year (August 28th to September 3rd, 2017), at least 20 press releases were announced by companies working in Mexico, including three quarterly financial reports. ON MEXICO ISSUES, no relevant news. ON EXPLORATION, in Sonora, Alix released drilling results from its Electra property in Sonora. ON MINING, Maverix Metals and Santacruz Silver and Southern Silver reported second quarter 2017 financial results. Telson Resources initiated underground mining at Campo Morado in Guerrero. ON FINANCING, VVC Exploration, Colibri and Southern Silver announced the opening or closure of financing rounds for CA$1 M, $1.2 M and $468 K respectively. Marlin Gold withdrew $7 M from its loan facility with Wexford during July and August. Goldgroup Mining amended a credit line with Credipresto. ON RESOURCES AND DEVELOPMENT, VVC Resources initiated a drilling program in Samalayuca, Chihuahua. Sierra Metals released high-grade results from drilling at Cusi, in Chihuahua. Kootenay Silver released drilling results from La Cigarra, also in Chihuahua. Silver Bull is starting an underground drilling campaign at Sierra Mojada, Coahuila. Endeavour Silver released drilling results from Guanacevi, Durango. Mx Gold intends to begin processing of the Magistral del Oro tailings in Durango by the fourth quarter 2017. Geologix is working on the goal of expanding the resource at Tepal, Michoacan. ON DEALS AND CORPORATE ISSUES, VVC Exploration signed a LOI on the La Tuna property in Sinaloa.

ON MEXICO ISSUES

  • No Relevant News.

ON EXPLORATION

  • Alix Resources Corp. completed, in partnership with Lithium Australia, 1,762 m of RC drilling on 16 holes on its Electra project in the Agua Fria property in Sonora. The program resulted in the discovery of the West Flank zone, which is 25-50 m thick and extends for nearly 2.5 km. Results include 82 m @ 938 ppm Li; 75.0 m @ 966 ppm Li; 30.0 m @ 917 ppm Li; 33.0 m @ 991 ppm Li; 57.0 m @ 719 ppm Li; 45.0 m @ 816 ppm Li; 90.0 m @ 904 ppm Li.

ON MINING

  • Telson Resources Inc. has commenced underground mining operations at Campo Morado in Guerrero. Plans are to accumulate up to 80,000 tons to support the initial start-up of the flotation mill. “The initial processing is planned to commence at approximately 1000 tons per day and will slowly be ramped up to the mill’s ultimate capacity of 2,500 tonnes per day.”
  • Maverix Metals Inc. announced financial results for the second quarter 2017. The royalty and streaming company, which has a NSR from gold production from Pan American Silver’s La Colorada mine in Zacatecas, had a revenue of CA$4 M, with average cash cost per attributable AuEq ounce of CA$187. The company has a current cash balance of CA$32 M.
  • Santacruz Silver Mining Ltd. reported financial and operating results for the second quarter of 2017. The company owns the Veta Grande and Rosario projects in Zacatecas and San Luis Potosi, respectively; producing 270.7 K AgEq Oz at cash cost $21.24 per AgEq Oz and all-in sustaining cost (AISC) of $24.62 per AgEq Oz during the period. Santacruz disposed of its interests in the Gavilanes, San Felipe and El Gachi projects for proceeds of $19.14 M, settling debt to JMET and LLC for $7.36 M and making payments to the underlying vendors of the properties for $3.48 M. The company also entered into the Membrillo property agreement to augment mineralized feed to the Rosario mill.
  • Marlin Gold Mining Ltd. announced its financial results for the second quarter 2017. During the period the company produced 8,785 Oz Au at its La Trinidad mine in Sinaloa, selling 9,825 Oz Au. Currently the company has cash and finished gold account for $2.6 M, $1.7 M of finished gold and $14.2 M of gold-in-process. “Investments in shares of Golden Reign Resources Ltd. stood at $8.7 million at quarter end”.

ON FINANCING

  • VVC Exploration Corp. has opened a non-brokered private placement for up to CA$1 M (Samalayuca, Chihuahua).
  • Colibri Resource Corp. announced a non-brokered private placement intending to raise up $1.2 M (Pitaya and Pilar, Sonora).
  • Marlin Gold Mining Ltd. informed on its second quarter report that during July and August the company received US$2 M and US$5 M respectively from the Wexford loan facility, increasing the Wexford loan to US$37 M (La Trinidad, Sinaloa).
  • Goldgroup Mining Inc. announced the amendment of its outstanding loan facility from Credipresto SAPI de CV SOFOM ENR. Javier Reyes, a director of Goldgroup, is an executive officer and director at Credipresto. The aggregate outstanding balance (15% interest per annum) is now US$627 K, with the available credit set at US$1.5 M, of which US$1 M is intended to be drawn shortly. Three and a half million warrants (on Goldgroup shares) were issued to Credipresto (Cerro Prieto, Sonora).
  • Southern Silver Exploration Corp. closed the second tranche of its previously announced private placement, with gross proceeds of $468 K. The private placement was comprised of a brokered and non-brokered component. Gravitas Securities received a cash fee of $42.2 K and 105.6 K options. The proceeds are to be used on the continuing exploration of the Cerro Las Minitas property in Durango.

ON RESOURCES AND DEVELOPMENT

  • VVC Exploration Corp. started a diamond drilling program on its Samalayuca copper project in Chihuahua. The 3,000 m program is focusing on the area of the La Gloria open pit, mined by Gambusinos in the 1960’s. A recently completed magnetic survey is backing the location site for 15 inclined holes that are to be 100 to 300 m in length.
  • Sierra Metals Inc. presented results from the expanded 14,000 m drilling program on 22 holes completed at the Santa Rosa de Lima zone within its Cusi property in Chihuahua. Intercepts include >3.8 m @ 287 g/t Ag, 0.1% Pb, 0.1% Zn; >4.5 m @ 401 g/t Ag, 0.1% Pb, 0.2% Zn; >4.0 m @ 205 g/t Ag, 2.4% Pb, 3.1% Zn; >13.8 m @ 465 g/t Ag, 0.5% Pb, 0.3% Zn; >4.7 m @ 172 g/tAg, 5.3% Pb, 5.1% Zn. The average grade and true width of infill intercepts is 343 g/t AgEq over 3.63 m, with the step-out holes extending the known mineralization zone to 1.7 km along the 12 km long Santa Rosa de Lima structure.
  • Kootenay Silver Inc. disclosed results from the last drill hole to extend the recently discovered Las Venadas zone within its La Cigarra property in Chihuahua. The hole is 140 m northeast from the last hole, intercepting 7.0 m @ 169 g/t Ag; 12.0 m @ 121 g/t Ag; 24.2 m @ 93 g/t Ag. “The strength and intensity of brecciation, veining and alteration observed in hole CC-17-28 is consistent with discovery hole CC-17-26, which bottomed in veining. Textures are indicative of a variant of an epithermal hydrothermal breccia complex”.
  • Silver Bull Resources Inc. started a 2,000 m underground diamond drill program targeting the recently identified zone of high grade sulfide mineralization at its Sierra Mojada project in Coahuila. The program is to be carried out by the company owned Termite drill rig, capable of drilling up to 100 m of HQ size diamond core.
  • Endeavour Silver Corp. released drilling results extending high-grade mineralization along strike on the Santa Cruz vein and on a newly discovered splay named the La Negra vein, on its Guanaceví mine in Durango. Highlighted true width intercepts: 2.0 m @ 0.4 g/t Au, 259 g/t Ag (on La Negra vein); 2.9 m @ 0.5 g/t Au, 260 g/t Ag; 2.6 m @ 0.3 g/t Au, 334 g/t Ag; 1.9 m @ 0.5 g/t Au, 324 g/t Ag; 3.4 m @ 0.7 g/t Au, 786 g/t Ag; 1.3 m @ 0.4 g/t Au, 397 g/t Ag; 1.9 m @ 0.8 g/t Au, 357 g/t Ag; 1.2 m @ 1.7 g/t Au, 618 g/t Ag.
  • MX Gold Corp. announced in its JV with GracePoint Mining Corp. the project completion and production commencement by the fourth quarter of 2017 on its Magistral del Oro tailing s project in Durango. “…includes a fully permitted, 500 tonne-per-day dynamic cyanide countercurrent system plant constructed in 2013 and tailings containing a historic estimate of 1.25 million tonnes averaging 2.06 grams per tonne gold.”
  • Geologix Explorations Inc. is re-logging selected drill hole intersections on the South Pit of its Tepal property in Michoacan, trying to determine where the high grade structurally controlled ore lies. Rockchip samples are being collected for assay, and also for alteration and geophysical studies. The work is aimed to expand the economic resource base and make additional discoveries, enhancing the preliminary economic assessment (PEA).

ON DEALS AND CORPORATE ISSUES

  • VVC Exploration Corp. signed a letter of intent with Southern Fuels, Inc. to buy the La Tuna gold property in Sinaloa. To complete the acquisition, due diligence work is being carried out, and a formal purchase and sale agreement needs to be negotiated, with a first payment to be made during September 2017.

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

On the picture below, Cananea and the Buenavista del Cobre mine as seen from the North. Photo by Jorge Cirett.

 

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

During the 34th week of the year (August 20th to August 26th, 2017), at least 20 press releases were announced by companies working in Mexico, including two quarterly reports. ON MEXICO ISSUES, no relevant news. ON EXPLORATION, in Sonora, Azure is soon to release drilling results from the Oposura project, while Colibri is planning to drill the Pilar property near Suaqui. In Hidalgo Prospero intends to drill the El Petate property. In Zacatecas Arian Silver completed the drilling of three lithium salars. ON MINING, Impact Silver and Santacruz Silver reported second quarter production results for 2017. ON FINANCING, no relevant news for the first time in the year.  ON RESOURCES AND DEVELOPMENT, Monarca is trying to secure surface rights at its Tejamen property in Durango. Mexican Gold is to realize a geophysical survey at Las Minas in Veracruz. Telson Resources has received permits for tailings facilities in Durango. Silver Bull identified a new zone of sulfide mineralization at Sierra Mojada, Coahuila. Almaden released drilling results from inside the planned pit at Tuligtic, Puebla. Consolidated Zinc released high-grade drilling intercepts at Plomosas, Chihuahua. Bacanora Minerals provided an update on the FS of the Sonora Lithium project. Americas Silver released drilling results from the Cosalá mine complex in Sinaloa. ON DEALS AND CORPORATE ISSUES, Sonora Metals started trading on the OTCQB Venture Market.  Azure Minerals acquired the gold-cobalt Sara Alicia property in Sonora.

ON MEXICO ISSUES

  • No Relevant News.

ON EXPLORATION

  • Azure Minerals Ltd. is advancing on the planning and approval process of an upcoming drilling campaign at its newly-acquired Oposura Zn-Pb-Ag project in Sonora. The previous owner drilled 994 m in 16 diamond drill holes, assay results for which are expected shortly. “Significant sulphide mineralisation, including massive, banded and disseminated, was observed in most holes.”
  • Azure Minerals Ltd. acquired the Sara Alicia property in Sonora (see note below). The 9 hectares concession covers all the historical mine workings and observed Au-Co and Cu-Zn-Ag manto mineralization exposures related to the intrusion of a granodiorite porphyry into a thick limestone sequence. Sampling on the Au-Co zone returned 2.5 m @ 39.0 g/t Au, 6.1% Co; 2.5 m @ 12.5 g/t Au, 6.9% Co; 3.0 m @ 5.7 g/t Au, 2.4% Co; 2.1 g/t Au, 3.2% Co; while sampling at the Cu-Zn-Ag zone returned 2.4 m @ 2.2% Cu, 2.4% Zn, 84 g/t Ag; 1.0 m @ 3.4% Cu, 3.1% Zn, 124 g/t Ag; 3.5 m @ 2.1% Cu, 4.2% Zn, 54 g/t Ag; 2.5 m @ 5.2% Cu, 2.5% Zn, 170 g/t Ag; 1.5 m @ 2.1%Cu, 3.2% Zn, 133 g/t Ag.
  • Prospero Silver Corp. intends to begin drilling in September at the El Petate project in Hidalgo, funded by strategic partner Fortuna Silver Mines Inc. High level epithermal alteration is exposed over a 5×4 km area, showing a robust mineralized system with additional potential to host a carbonate replacement deposit at depth. Surface sampling returned a continuous channel sample of 67.5 m @ 0.93 g/t Au. A total of 2,800 m on 29 holes has been proposed to Fortuna.
  • Colibri Resources Corp. is planning three tranches of RC drilling (10,000 m) at its recently acquired Pilar gold project in Sonora. The surface rights agreement has been signed on friendly terms.
  • Arian Silver Corp. completed the first phase of auger drilling on its three lithium projects in Zacatecas. The drilling of 28 holes resulted in 214 samples that have been sent for assay at ALS Global. The results are expected in about three or four weeks.

ON MINING

  • Impact Silver Corp. released its financial and production results for the second quarter of 2017. Most of the production was from the San Ramon Deeps, Cuchara, Mirasol and San Patricio mines at its Zacualpan property in Mexico State. The average silver feed to the mill was 173 g/t Ag, to produce 227.5 K ounces of silver. Exploration work is focused on larger and higher-grade targets at Alacran and Alacran North. The cash position at the end of the period was $6.8 M, with net working capital of $8.6 M.
  • Santacruz Silver Mining Ltd. reported second quarter 2017 production results. At the Rosario project in San Luis Potosi 28 k tonnes were milled @ 42 g/t Ag (172 g/t AgEq), recovering 87% Ag, to produce 33.2 K Oz Ag, 298 Oz Au, 40 tonnes Pb, 408 tonnes Zn (124.7 K Oz AgEq). At Veta Grande in Zacatecas 29.7 k tonnes were milled @ 102 g/t Ag (218 g/t AgEq), recovering 64% Ag, to produce 56.1 K Oz Ag, 174 Oz Au, 198 tonnes Pb, 317 tonnes Zn (145.9 K Oz AgEq). At Rosario the focus has been on increasing the input from the Membrillo vein and the Cinco Estrellas property. At Veta Grande the focus is in through-put maximization and grade control.

ON FINANCING

  • No Relevant News.

ON RESOURCES AND DEVELOPMENT

  • Monarca Minerals Inc. is trying to secure the surface rights at Tejamen, Durango. To date Monarca has met with senior government officials at the Federal, State and Municipal level, earning full support for the project, and contact with the leaders of the community has been initiated aiming to become a responsible Community partner. A new deeper drilling program is being planned to follow high grade feeder veins and test the base of the volcanic rocks over sedimentary rocks where manto and carbonate replacement mineralization might occur; initial work is to involve re-logging all drilling samples of the previous campaigns.
  • Mexican Gold Corp. has commenced field work preparation for ground magnetic and time domain electromagnetic surveys at its Las Minas project in Veracruz. The surveys aim to identify targets for the upcoming 3,000 m diamond drill program by contractor K.D.L. Mexico S.A. de C.V. at the Cinco Señores, Las Minillas and El Dorado/Juan Bran zones.
  • Telson Resources Inc. has received permits from Semarnat for reactivation of the existing tailings disposal facility and for the construction of a new larger tailings facility for the Tahuehueto project in Durango. The permitted capacity of over 13 M cubic meters can accommodate more than 30 years of production at the planned 1,000 tonnes per day mining rate.
  • Silver Bull Resources Inc. identified a new massive sulfide zone at its Sierra Mojada project in Coahuila. This zone lies within a 1.4 km long chargeability anomaly within which other two zones of sulfide mineralization that present high grade Zn-Pb-Cu. Approximately 280 m of previously non-accessible workings were opened and 19 samples collected with results like: 2.34 m @ 1,315 g/t Ag, 9.0% Cu; 2.32 m @ 392 g/t Ag, 0.4% Zn, 1.8% Cu; 1.4 m @ 329 g/t Ag, 42% Zn, 3.2% Cu; 1.52 m @ 713 g/t Ag, 3.4% Zn, 0.1% Pb, 1.1% Cu; 1.13 m @ 1,130 g/t Ag, 22.2% Zn, 3.3% Pb, 12.9% Cu; 2.00 m @ 495 g/t Ag, 7.1% Zn, 2.7% Pb, 1.1% Cu; 2.00 m @ 33 g/t Ag, 8.1% Zn, 3.4% Pb, 0.1% Cu; 2.0 m @ 42 g/t Ag, 1.5% Zn, 2.4% Pb, 0.2% Cu; 2.0 m @ 73 g/t Ag, 19.2% Zn, 4.8% Pb, 0.3% Cu: 2.0 m @ 491 g/t Ag, 24.7% Zn, 0.4% Pb, 1.6% Cu; 2.0 m @ 277 g/t Ag, 19.6% Zn, 18.3% Pb, 0.7% Cu.
  • Almaden Minerals Ltd. released high-grade drilling results from a previously undrilled area inside the planned pit at its Tuligtic project in Puebla. The hole reported intersected 74.5 m @ 0.66 g/t Au, 45 g/t Ag; 64.30 m @ 0.79 g/t Au, 74 g/t Ag; 46.85 m @ 0.49 g/t Au, 68 g/t Ag.
  • Consolidated Zinc Ltd. reported new high-grade results from underground sampling from the Las Espadas West stope area. Significant assays include 1.0 m @ 22.2% Zn, 3.5% Pb, 20 g/t Ag; 1.5 m @ 28.8% Zn, 13.2% Pb, 41 g/t Ag; 1.2 m @ 36.3% Zn, 12.8% Pb, 50 g/t Ag; 1.5 m @ 37.9% Zn, 12.3% Pb, 36 g/t Ag; 1.0 m @ 33.2% Zn, 6.9% Pb, 32 g/t Ag; 1.0 m @ 20.4% Zn, 10.8% Pb, 25 g/t Ag. Mineralization is coarse grained massive sulfides, comprising low iron sphalerite and galena at a ratio of around 2 to 3:1.
  • Bacanora Minerals Ltd. provided an update on the feasibility study (FS) for a 35,000 tonnes per year lithium carbonate operation that is to be completed in late 2017. A sodium sulfate (Na2SO4) roast has been developed over the more expensive gypsum (Ca2SO4) roast previously contemplated. “Ausenco Engineers is currently undertaking final plant layout, capital equipment tenders and flow sheet optimization work.” Mechanical and metallurgical optimization of the Hermosillo plant is underway, while the mine plan optimization continues. On the energy supply side five independent proposals have been received, including gas and electrical sources. Long term debt funding is being sought for the construction phase, which should take 18 months.
  • Americas Silver Corp. released results from drilling at the Zone 120 deposit, adjacent to the San Rafael development project, part of the Cosalá property in Sinaloa. Highlighted true width (TW) recent intercepts include 61.4 m @ 306 g/t Ag, 0.23 g/t Au, 0.8% Cu (including 9.4 m @ 932 g/t Ag, 0.82 g/t Au, 1.9% Cu and 9.4 m @ 479 g/t Ag, 0.29 g/t Au, 1.1% Cu); 39.6 m @ 205 g/t Ag, 0.28 g/t Au, 0.5% Cu; 22.8 m @ 138 g/t Ag, 0.22 g/t Au, 0.37% Cu; 18.1 m @ 113 g/t Ag, 0.08 g/t Au, 0.2% Cu.

ON DEALS AND CORPORATE ISSUES

  • Sonora Metals Corp. has started trading on the OTCQB Venture Market. The company owns the over 1,000 ha San Marcial property in Sonora, which contains the old Soledad and San Marcial mines.
  • Azure Minerals Ltd. has acquired the Sara-Alicia gold-cobalt project in southern Sonora. The property saw limited underground mining of gold and cobalt in the 1930’s. To get hold of the property the company successfully obtained the revocation of the recently cancelled mining concession, and a further payment of US$125,000 will be made to the family once commercial production is achieved, no NSR to be paid. The company is to wait for the liberation of a recently expired surrounding 22,000 has tenement to apply for further terrain.

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

On the picture below, artisanal rock mill, or “tauna”, in the Sierra Madre of Chihuahua. Photo by Jorge Cirett.

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

During the 33rd week of the year (August 14th to August 20th, 2017), at least 24 press releases were announced by companies working in Mexico, including five quarterly reports. ON MEXICO ISSUES, no relevant news. ON EXPLORATION, in Sonora, Azure reported the acquisition of the Oposura property (formerly Arenillas). In Sinaloa Marlin Gold released results from a twin hole south of its La Trinidad mine, and Santana Minerals reported saw channel samples from its Cuitaboca project. In Veracruz Almadex reported good gold and copper values over a long drill intercept at El Cobre. ON MINING, GoGold, Sierra Metals, Fortuna Silver, Aura Minerals and Starcore presented financial and/or operational results for the last quarter. Telson resources reported the second concentrates shipment from Tahehueto in Durango. ON FINANCING, Primero mining is delisted from the NYSE. Southern Silver is extending the closing of the second tranche of financing. Maverix Metals closed a senior secured loan facility with CFE Ltd.  ON RESOURCES AND DEVELOPMENT, Avino Silver released infill and step-out drilling results from Avino, in Durango. Kootenay  announced the discovery o a new mineralized zone at its La Cigarra property in Chihuahua. Minera Alamos commenced an exploration program focused on resource expansion at La Fortuna in Durango. Consolidated Zinc disclosed more high-grade results from infill and step-out drilling at its Plomosas property in Chihuahua. ON DEALS AND CORPORATE ISSUES, Santacruz Silver completed the sale of the Gavilanes project in Durango to Marlin Gold. Discovery Metals announced the acquisition of multiple properties in Coahuila, including the Puerto Rico listing property.

ON MEXICO ISSUES

  • No relevant news.

ON EXPLORATION

  • Marlin Gold Mining Ltd. announced that a diamond drill hole at the San Cristobal target, 12 km from its La Trinidad mine in Sinaloa intercepted 13.90 m true width (TW) @ 1.19 g/t Au, 21 g/t Ag. The objective of the drill hole was to twin a reverse circulation hole that intersected 0.74 g/t Au over 30 m in 2010. “Reconnaissance geological mapping and sampling (over 1,600 rock chip samples) indicate gold and silver is associated with quartz veins, quartz stockwork, quartz breccia and silicified zones within a four kilometer-wide, northwest-trending structural corridor”.
  • Almadex Minerals Ltd. disclosed results from the best hole to date at the North zone of its El Cobre project in Veracruz. The drill hole intersected multiple zones of intense stockwork veining and potassic alteration with gold and copper mineralization. The 534.9 m intercept @ 0.90 g/t Au, 0.3% Cu includes 144.8 m @ 1.77 g/t Au, 0.45% Cu (which includes 98.0 m @ 1.96 g/t Au, 0.48% Cu.
  • Endeavour Silver Corp. Released results from recent drilling at La Luz vein in its Terronera property in Jalisco. Relevant true width intercepts of 1.7 m @ 16.2 g/t Au, 45 g/t Ag; 1.3 m @ 20.9 g/t Ag, 25 g/t Ag; 1.4 m @ 0.2 g/t Au, 419 g/t Ag; 1.0 m @ 2.3 g/t Au, 73 g/t Ag; 1.1 m @ 2.7 g/t Au, 91 g/t Ag; 1.1 m @ 20.3 g/t Au, 384 g/t Ag, 1.2 m @ 16.5 g/t Au, 38 g/t Ag; 1.2 m @ 7.6 g/t Au, 12 g/t Ag. Anomalous values of up to 0.15% of Cu, Pb and Zinc are part of the results.
  • Azure Minerals Ltd. announced the acquisition of 100% of the Zn-Pb-Ag Oposura project (previously known as Arenillas) in Sonora, without elaborating on the terms. About 100 drill holes were completed previously on the property, and a non JORC compliant resource estimated. Sampling of the mineralized zone returned multiple assays over 30% Pb+Zn, with significant silver values. “The overall mineralised zone is up to nine metres thick, averages about three metres in true width, and demonstrates good continuity of width and grade”.
  • Santana Minerals Ltd. reported significant diamond saw channel sampling results from the La Plata prospect within its Cuitaboca project in Sinaloa. The results over accessible outcrops include 2.45 m @ 362 g/t Ag and 4.60 m @ 295 g/t Ag. These results represent the continuity 300 m east of previous sampling, extending the potential strike of the interpreted La Plata vein system to approximately 2 km.
  • Galore Resources Inc. disclosed assay results from seven rock chip samples collected on El Alamo target on its Dos Santos project in Zacatecas. The samples collected in breccias and jasperoids assayed 0.8 to 18.6 g/t Au. Drilling plans envisage ten 150 to 300 m deep holes.

ON MINING

  • Telson Resources Inc. announced the second shipment of 128 tonnes of lead concentrate and 227 tonnes of zinc concentrate from the Tahuehueto mine. The metal recoveries were 83.5% Au, 89.3% Ag, 86.1% Pb, 85.4% Zn.
  • GoGold Resources Inc. released its financial results for the quarter ending on June 2017 (their Q3). During the period 2,337 Oz Au, 151,422 Oz Ag were produced at the Parral tailings project at cash cost of $9.61 per AgEq Oz. The Santa Gertrudis high grade gold project produced 320 Oz Au. The overall cash cost was $16.2 per AgEq Oz and the all-in sustaining cost (AISC) $25.91. At the end of the quarter the company had a working capital deficit of $35.1 M. Management is exploring alternatives to de-lever its balance sheet.
  • Sierra Metals Inc. reported consolidated results for the second quarter of 2017. At Bolivar in Chihuahua the cash cost per CuEq Lb was $1.35 and AISC $2.49 per CuEq Lb for the period, while at Cusi, also in Chihuahua, the cash cost per AgEq Oz was $20.60 and AISC $49.13. At Bolivar 775 m of mine development were completed to prepare stopes for mine production, and 11,236 m were drilled at El Gallo, Bolivar Northwest and Bolivar West zones. At Cusi mine development totaled 1,551 m and 2,021 m of infill drilling were completed and further 15,566 m were drilled on the Santa Rosa de Lima orebody. Cash and cash equivalents of $31.1 M at the end of the period.
  • Fortuna Silver Mines Inc. reported its consolidated financial results for Q2 2017. At San Jose in Oaxaca 268.4 K tonnes were milled (3,016 tonnes per day, or tpd) @ 238 g/t Ag, 1.82 g/t Au, and a recovery rate of 92% Ag, 92% Au to produce 1.88 M Oz Ag, 14,410 Oz Au. Cash cost net of by-product credits was $1.03 per Ag Oz and AISC $7.67 per Ag Oz. Cash and short term investments of $16.7 M at the end of the period.
  • Aura Minerals Inc, released Q2 2017 financial and operating results. Aura owns the idle Aranzazu mine in Zacatecas, which is under care and maintenance. The company is evaluating options to maximize value of this asset.
  • Starcore International Mines Ltd. announced production results for the first quarter of fiscal 2018, ended July 31, 2017. During the quarter at the San Martin mine in Queretaro 69.7 K tonnes were milled @ 1.97 g/t Au, 12.6 g/t Ag with recoveries of 85.0% Au, 51.2% Ag to produce 3,888 Oz AuEq. Furthermore, the Altiplano Facility received 37. 2 tonnes of concentrate and 24.2 tonnes of slag containing approximately 150 Oz Au and 25.5 K Oz Ag.

ON FINANCING

  • Primero Mining Corp. has received formal notification from the New York Stock Exchange of its intention to initiate delisting procedures, as the company is no longer suitable for listing based on “abnormally low” price levels. The company continues trading on the Toronto Stock Exchange.
  • Southern Silver Exploration Corp. is extending the final closing date of its previously announced brokered private placement until September 15th, 2017. The first tranche closed in June, raising $2.55 M of the intended goal of $5.0 M on two tranches.
  • Maverix Metals Inc. closed the previously announced senior secured loan facility with CEF Ltd. for US$20 M. The company has closed the previously announced private placement to CEF and Pan Ameican Silver Corp. for total proceeds of $9.88 M. Maverix now has over C$44 M available to acquire additional precious metals royalties (Royalties from La Colorada in Zacatecas, San Jose in Oaxaca).

ON RESOURCES AND DEVELOPMENT

  • Avino Silver & Gold Mines Ltd. release further results from the extended 22 hole drill program comprising 3,374 m at the Avino mine in Durango. The program focused on tonnage and grade of the area between the San Luis workings and the Elena Tolosa current production area. Relevant results include 9.30 m @ 0.39 g/t Au, 29 g/t Ag, 0.25% Cu; 22.65 m @ 1.48 g/t Au, 41 g/t Ag, 0.20% Cu; 34.5 m @ 0.35 g/t Au, 88 g/t Ag, 0.82% Cu; 25.40 m @ 0.68 g/t Au, 47 g/t Ag, 0.08% Cu; 43.05 m @ 0.50 g/t Au, 33 g/t Ag, 0.08% Cu; 8.85 m @ 0.09 g/t Au, 61 g/t Ag, 0.77% Cu; 8.45 m @ 1.36 g/t Au, 7 g/t Ag, 0.07% Cu; 23.40 m @ 1.09 g/t Au, 167 g/t Ag, 0.38% Cu; 40.45 m @ 0.56 g/t Au, 42 g/t Ag, 0.19% Cu; 42.05 m @ 0.49 g/t Au, 103 g/t Ag, 0.18% Cu. Three areas are scheduled to have exploration drilling: San Gonzalo (1,200 m), The Avino-San Juventino intersection (2,000 m) and the Chirumbo mining area (2,000 m ).
  • Kootenay Silver Inc. announced the discovery of a new mineralized zone within La Venada target at its La Cigarra property in Chihuahua. This area is blind to the surface, 1 km south of the La Cigarra resource. “More than 250 meters in core length of quartz-calcite and quartz vein breccia and veining within altered sediments was intercepted…”. The new zone intercept comprises 29.5 m @ 91 g/t Ag, including 19.2 m @ 123 g/t Ag. Results from the Venada zone include 12 m @ 73 g/t Ag; 10 m @ 47 g/t Ag; 19.2 m @ 123 g/t Ag (including 2.0 m @ 435 g/t Ag; and 10.7 m @ 114 g/t Ag); 9.5 m @ 107 g/t Ag. All intervals contain values of up to 0.6% Pb and 3.3% Zn.
  • Minera Alamos Inc. has initiated an exploration program aimed to expand resources at La Fortuna property in Durango. Data compilation, surface mapping, drill targeting and  a new geophysical survey are to be completed on projections of the La Fortuna resource zone, the PN area, the Ramada zone, Cerro Pelon zone and the far southern area.
  • Consolidated Zinc Ltd. released results from its resource expansion drilling program at its Plomosas project in Chihuahua. True width intercepts include: 0.40 m @ 3.8% Zn, 1.0% Pb; 1.75 m @ 9.4% Zn, 1.7% Pb; 0.85 m @ 4.4% Zn, 0.3% Pb; 0.90 m @ 10.9% Zn, 6.7% Pb; 0.95 m @ 3.7% Zn, nil Pb. Length of drill hole intersections include 1.50 m @ 8.0% Zn, nil Pb; 1.35 m @ 34.7% Zn, nil Pb; 0.5 m @ 5.0% Zn, 0.2% Pb; 0.75 m @ 4.2% Zn, 0.3% Pb; 0.5 m @ 2.3% Zn, 1.1% Pb; 0.5 m @ 9.4% Zn, 0.3% Pb; 1.0 m @ 7.2% Zn, 0.4% Pb.

ON DEALS AND CORPORATE ISSUES

  • Santacruz Silver Mining Ltd. informed the sale of 100% interest in the Gavilanes property in Durango to Marlin Gold Mining Ltd. has been completed.
  • Discovery Metals Corp. is now classified as a Tier 2 Mining Issuer on the TSX Venture Exchange, with the completion of the transaction on the Puerto Rico property agreement. Under the agreement Discovery has done a $300 K payment, the issuing 500 K shares to the vendors, and pledged to make and additional US$300 K payment and issuing a further 500 K shares upon government drilling approval, and the issuance of four tranches of 500 K shares on each anniversary of the closing after the second anniversary. A final issuance of shares representing 30% of the company’s issued and outstanding capital is also included, with some clauses that can take the vendors stake to 35%. Discovery also has to spend not less than US$2 M within one year of the drilling approval and not less than $12.5 M within five years to exercise the option.
  • Discovery Metals Inc. For acquiring the Renata project in Ocampo, Coahuila a US $100 K payment is to be made to the vendors within three months of the closing. Not less than US$2 M have to be spent within three years of the closing, and in the case of sale to a third party the vendors are to receive the first US$3 M of the proceeds. On La Kika property in Coahuila, Discovery has paid US$45 K on closing, and has to spend not less than US$2 M within five years, the issuance to the vendors of 1 M shares and a royalty of 30% on the operating profits of the first 450 K tonnes shipped, or a 2% NSR otherwise. Additional option agreements involve La Minerva, Santa Rosa and Jemi/Rare Earth concessions..

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

On the picture below, low sulfidation quartz vein stockwork in felsic volcanic rocks, in the Sierra Madre of Chihuahua. Photo by Jorge Cirett.

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

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

ON MEXICO ISSUES

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

ON EXPLORATION

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

ON MINING

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

ON FINANCING

  • No relevant news.

ON RESOURCES AND DEVELOPMENT

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

ON DEALS AND CORPORATE ISSUES

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

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

On the picture below, vuggy silica fragment within a felsic tuff in Chihuahua. Photo by Jorge Cirett.

Vuggy quartz at Moreno