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Highlights on the Third Week of October 2016, Mineral Exploration in Mexico

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During the third week of October, at least 23 press releases were published by companies working in Mexico, including five third quarter production releases. ON MEXICO NUMBERS AND NEWS, a member of the Special Commission on Mining is to be present in forums to be held in all mining States to generate a favorable investment climate. A mine started operation in Sinaloa. ON EXPLORATION, eight companies reported exploration updates on their properties, which include drilling results from a property in Sonora and another in Durango, as well as the announcement of incoming drilling programs at properties in Sinaloa, Chihuahua and Sonora. A company commenced a PIMA study program to integrate into its drill targeting in Chihuahua, another announced  the high grade gold results from trenching in Sonora, and one more is to produce an environmental report prior to drilling in Chihuahua. One more company disclosed the assay results of lithium rich clays in Sonora.  ON MINING, five companies reported third quarter production results for its operations in Sonora, Durango, Oaxaca and Chihuahua. A company has completed development work to start mining a new ore body in Oaxaca, another company reached the high grade part of the resource on its property in Sinaloa , a third one commenced bulk sample processing in Durango and a fifth reported production from mine and processing facilities in Sinaloa for September. ON FINANCING, one company issued 34.4 M shares @ C$0.10.  ON DEALS AND CORPORATE ISSUES, one company gained the right to appoint officials in another’s company board.

ON MEXICO NUMBERS AND NEWS

  • The Special Commission on Mining has Deputy Ms. Guadalupe Chavez Acosta as General Secretary. She is to visit all the state with mining activities, where forums are to be held to learn the needs of the industry and base the legislative agenda. She assured that the Environmental laws, the fiscal situation and the mining concessions regime will be reviewed, in order to generate a favorable business climate for national and international investments in the industry.
  • The Sinaloa Economic Development Bureau (Secretaría de Desarrollo Económico) announced the inauguration of the San Rafael mine in Cosala municipality, by Americas Silver Corp. The estimated annual production is to be 1 M Oz Ag, 50 M Lb Zn and 20 M Lb Pb.

ON EXPLORATION

  • Oceanus Resources Corp. released results from nine new diamond drill holes at its El Tigre property in Sonora. The purpose of the drill campaign is to determine the extent and continuity of mineralization test the oxide zone to 200 m depth and collect core for metallurgical work. Significant intervals include 95.6 m @ 1.17 g/t Au, 13 g/t Ag (including 42.1 m @ 2.4 g/t Au); 74.2 m @ 0.8 g/t Au, 11 g/t; 95.5 m @ 0.42 g/t Au, 26 g/t Ag. Oceanus has now completed 3,127 m on 19 holes.
  • Santana Minerals Ltd. will commence a 22 hole, 2,800 m RC drill program at its Cuitaboca project in Sinaloa. The objectives include to extend drilled high grade zones on the Mojardina structure and to test other targets on the same structure,the Jesus Maria breccia and the Carajuca splay. Significant intercepts from the first drill campaign include near-surface intercepts like 10 m @ 64 g/t Ag; 14 m @ 76 g/t Ag; 83 m @ 97 g/t Ag; 67 m @ 66 g/t Ag and 51 m @ 42 g/t Ag.
  • Orex Minerals Inc. and partner Canasil Resources Inc. announced assay results for seven out of eleven holes of the third phase of drilling at its Sandra Escobar project in Durango. True width (TW) intervals include 12.26 m @ 36 g/t Ag (and a lower interval of 6.9 m @ 46 g/t Ag); 7.6 m @ 32 g/t Ag on the Cerro Chato Zone and 33.6 m @ 108 g/t Ag; 11.5 m @ 28 g/t Ag; 32.7 m @ 55 g/t Ag on the southern part of the Main Zone. An aeromagnetic and radiometric survey is being flown over the property, and an initial resource estimate is under preparation and due for completion by the end of October.
  • Mammoth Resources Corp. has commenced a PIMA x-ray diffraction ground survey at its Tenoriba property in Chihuahua. The company is collecting samples every 100 m along lines spaced 500 m apart, same that will be analyzed for the presence of clays associated to high sulfidation epithermal systems. The results of this survey are to be integrated with the previous studies, which include geological mapping, rock chip and channel sampling and surface geophysics to aid in the selection of targets for a planned drilling campaign early next year.
  • GoGold Resources Inc. has uncovered additional zones of high grade gold on surface at the Greta project in its Santa Gertrudis mine in Sonora. Trenching results over three sub-parallel zones of mineralization, dipping 20 degrees and extending for 660 meters and 370 m down dip have been released. Assay results from trenching include the following intervals: 18 m @ 32.7 g/t Au, 14 g/t Ag; 30 m @ 1.6 g/t Au, 4 g/t Ag; 18 m @ 2.4 g/t Au, 3 g/t Ag; 24 m @ 4.6 g/t Au, 20 g/t Ag and 12 m @ 6.8 g/t Au, 25 g/t Ag. A total of 7,800 tonnes @ 14 g/t Au have been shipped to a custom mill for grinding, cyanidation and zinc precipitation. Gold recoveries are expected to reach > 85%.
  • Silver Spruce Resources Inc. is working to produce an environmental report to file at SEMERNAT, regarding the incoming drill 1,000 – 1,500 m diamond drill program at its Pino de Plata property in Chihuahua.
  • SilverCrest Metals Inc. has drilled ~6,400 m in 22 core holes testing the Las Chispas and Guillermo Tell veins, as well as the La Victoria structure. Approximately 6.5 km of 11.5 Km of underground workings have been rehabilitated. Average backfill sampling averages 2.45 g/t Au, 226 g/t Ag for the Las Chispas vein; 1.24 g/t Au, 212 g/t Ag for the Guillermo Tell vein and 1.88 g/t Au, 126 g/t Ag for the Babicanora vein. Average dump grades are 1.04 g/t Au, 78 g/t Ag. A 2,000 m underground drilling program and minimum 6,000 m surface drill core program is to start in November.
  • Alix Resources Corp. disclosed exploration information on the Agua Fria zone of its Electra project in Sonora. The lithium bearing clays have been defined in a zone 4,500 m by up to 800 m, with 35 additional samples grading 235 – 1,190 ppm Li (averaging 625 ppm Li).

ON MINING

  • Gold Resource Corp. reported production results for the third quarter 2016, from its Aguila project in Oaxaca. Preliminary numbers are 6,066 Oz Au, 431.3 K Oz Ag, 213 tonnes Cu, 1,000 tonnes Pb and 3,232 tonnes Zn.
  • Argonaut Gold Inc. reported third quarter 2016 production results. At El Castillo in Durango, 2.625 M tonnes of ore were mined at 70 K tpd rate and a grade of 0.33 g/t for a production of 13,049 Oz Au; 3.8 M tonnes of waste were moved for a waste/ore ratio of 1.45. At La Colorada 1.06 M tonnes of ore were mined @ 0.52 g/t, to produce 12,610 Oz Au and 35,863 Oz Ag; 4.16 M tonnes of waste were moved, for a waste/ore ratio of 3.91.
  • Sierra Metals Inc. reported third quarter production results, including numbers from its operations in Mexico. At Bolivar in Chihuahua, 250 K tonnes of ore were processed (2,860 tpd) @ 0.96% Cu, 14.8 g/t Ag, 0.13 g/t Au; recoveries were 83.5%, 80.3% and 55.3% for copper, silver and gold respectively, to produce 4.4 M Lb Cu, 95 K Oz Ag and 583 Oz Au. At Cusi in Chihuahua, 48.8 K tonnes of ore were processed (558 tpd) @ 158.1 g/t Ag, 0.27 g/t Au, 1.1% Pb, 1% Zn; recoveries were 69.1%, 62.8%, 83.8% and 35.3% respectively for Ag, Au Pb and Zn, to produce 172 K Oz Ag, 265 Oz Au, 999 K Lb Pb and 394 K Lb Zn.
  • Avino Silver & Gold Mines Ltd. reported production results for the third quarter 2016, from its Avino property in Durango. At the Avino mine 116 K tonnes were mined, 111 K tonnes were milled @ 71 g/t Ag, 0.47 g/t Au, 0.48% Cu; recoveries stood at 85%, 58%, 89% respectively for silver, gold and copper, to produce 214.8 K Oz Ag, 973 Oz Au and 1.04 M tonnes Cu. At the San Gonzalo vein 30 K tonnes were mined, of which 27 K tonnes were milled, @ 272 g/t Ag, 1.3 g/t Au. The recovery was 83% for silver and 78% for gold, for the production of 196 K Oz Ag and 841 Oz Au.
  • HECLA Mining Co. released preliminary gold and silver production results for the third quarter 2016, which includes numbers from its San Sebastian mine in Durango. San Sebastian produced 975.6 K Oz Ag and 8,189 Oz Au during the period.
  • Gold Resource Corp. has reached the Susana vein of the Switchback vein system with a development ramp from the Arista mine, part of its Aguila project in Oaxaca. The company expects to pull development ore during the fourth quarter 2016.
  • Marlin Gold Mining Ltd. announced it is now mining high grade ore from its La Trinidad mine pit in Sinaloa.
  • Telson Resources Inc. informed that metal recovery testing operations commenced on the 2 K tonne bulk sample collected from the El Creston zone at its Tahuehueto project in Durango. The material is being processed at the Andes mill, near Guanacevi.
  • Dyna Resource Inc. reported production from its San Jose de Gracia mine in Sinaloa, where 3,740 tons of ore @ 11.14 g/t Au head grade was processed at a 174 tpd rate.

ON FINANCING

  • Alamos Gold Inc. announced the purchase of 25.3 M shares of Corex Gold Corp. at C$0.10 per share. This amount represents 19.07% of the outstanding common shares of Corex.
  • Corex Gold Corp. announced that apart from issuing 25.3 M shares to Alamos Gold Inc., 3 M shares were issued to management, and another 6.1 M shares were issued to H Morgan & Company (HMC), all at a price of $0.10 per share. As a result of these transactions, Alamos owns 19.07%, HMC 17.75% and management owns 8% of the issued and outstanding shares of the company.

ON DEALS AND CORPORATE ISSUES

  • Corex Gold Corp. granted Alamos Gold Inc. (in connection with the issuance of Corex shares to Alamos) the right to nominate up to two directors of Corex. Alamos has elected not to exercise such right at this time but retains the right to do so in the future (Santana in Sonora).

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

On the picture below, a strongly argillitized, moderately silicified felsic tuff, representing probably a paleo water table in the vicinity of the Las Chispas district in Sonora.

dscn0577-copia

Highlights on the Second Week of October 2016, Mineral Exploration in Mexico

/ Gambusino Prospector / Leave a comment

During the second week of October, at least 29 press releases were published by companies working in Mexico, including eight third quarter production releases. ON MEXICO NUMBERS AND NEWS, In Mexico the mining industry provides 4% of the GDP, and employs a large workforce. The ministers of Foreign Affairs of Canada and Mexico met and agreed on a work plan to address issues on the mining industry.  ON EXPLORATION, eight companies reported exploration updates on their properties, which include a large drilling program with high grade results in Chihuahua. In Sonora the discovery of lithium rich clays, and the intention to use RC rigs for its exploration in one project; copper soil and magnetic anomalies defined in another project, and gold in soils and rock chip sampling in a property in the Sonoran desert. In Puebla, drilling continues to intersect high grade values outside of a PEA pit limit, while in Sinaloa a several kilometers long trend hosts three target areas of which at least one has provided exciting drill intercepts. In Nayarit a drill program is to target a long and wide zone that portrays high grade rockchip sample results on surface. ON MINING, eight companies reported third quarter production results, providing a useful insight on output numbers. On other matters, a company resumed operations in Zacatecas, while other reported a fatality on a mine in the same State. In Sonora, a company stated it’s near term production target, while in Oaxaca a company was granted the final permit to start mining in a new area. A mine in Chihuahua announced the delay of starting the second phase of operations and in Baja California Sur another mine is trying to overcome low underground throughput and low metallurgical recoveries. ON RESOURCES, a company filed on SEDAR a previously released resource estimation from its property in Durango.  ON FINANCING, two companies entered on a subscription agreement worth $2.53 M, another one closed the first tranche of a private placement for $0.2 M and a third one completed a non-brokered private placement of $4.53 M.  ON DEALS AND CORPORATE ISSUES, one company gained the right to appoint officials in the other’s board, one more completed requirements with the SEC to resume trading and a third one announced that share consolidation and name change will be effective on the third week of October.

ON MEXICO NUMBERS AND NEWS

  • In Mexico the mining industry provides 4% of the GDP, being the fourth largest source of foreign currency, after the automotive, electronics and oil industries. In 2015 the mining industry sustained more than 350 thousand direct employees, and more than 1.6 M indirect jobs.
  • On Canada investment in Mexico. The Ministers of Foreign Affairs of Canada and Mexico, Stephane Dion and Claudia Ruiz met on October 12th, and agreed on a work plan to address the problems that affect the mining companies, of which organized crime and illegal blockades receive the most publicity. Canadian firms provide 70% of the direct foreign investment in mining in Mexico, according to S. Dion.

ON EXPLORATION

  • Coeur Mining Inc. expects to invest $30-$34 M in exploration (in Mexico, Alaska and Nevada) during 2016, which is an 82% increase on the 2015 exploration budget. The focus of exploration is on upgrading resources to reserves, and the discovery of new high-grade resources near existing infrastructure. At Palmarejo 141 holes have been drilled (29,564 m) from underground and surface at the Independencia, Guadalupe and Los Bancos veins. Recent true width intercepts include 4.39 m @ 2,883 g/t Ag, 39.1 g/t Au and 2.1 m @ 811 g/t Ag, 10.3 g/t Au on the same hole at Independencia, and 5.0 m @ 520 g/t Ag, 46.3 g/t Au at Guadalupe. The average grades at Palmarejo at year end 2015 were 169 g/t Ag and 2.61 g/t Au.
  • Alix Resources Corp. and Lithium Australia NL. reported a new lithium-rich clay discovery near its Elektra concession in Sonora. The mineralization has been traced for approximately one kilometer, and staked by a mining concession application named Agua Fria. Reconnaissance sampling returned 347,  353,  880,  950 and 1,000 ppm lithium, with thicknesses of the mineralized clays of 20 to 30 meters.
  • Evrim Resources Corp. defined an area  1,000 meter x 600 meter of propylitic to potassic altered volcanic rocks with a 600 meter x 500 meter copper soil anomaly (>100 ppm Cu). Chlorite-K-feldspar-pyrite-chalcopyrite veinlets and magnetite-chalcopyrite are present. Ground magnetics identified a 400 x 400 meter donut-shaped anomaly coincident with the anomalous soil geochemistry.
  • Colibri Resource Corp. identified a NE trending structure within its Evelyn project in Sonora. Thirteen samples collected along 110 m of the structure returned an average of 9.2 g/t Au. A previously reported 703 samples strong soil survey had results of up to 2.2 g/t Au, with 10% of the assays being greater than 50 ppb Au. A detailed mapping and sampling campaign is to follow.
  • Almaden Minerals Ltd. released results from drilling at its Ixtaca development project in Puebla. Intercepts outside and inside the amended PEA pit include 14.4 m @ 3.6 g/t Au, 147 g/t Ag; 24.2 m @ 2.3 g/t Au, 98 g/t Ag; 18.5 m @ 2 g/t Au, 50 g/t Ag and 75 m @ 0.67 g/t Au, 19 g/t Ag. This mineralization confirms the presence of additional zones of veining adjacent to the Ixtaca zone.
  • Mc Ewen Mining Inc. continues exploration drilling in the El Gallo district, concentrating on three prospective areas, Encuentro South, Las Milpas and Twin Domes, which are within a 7 km long prospective corridor. 8,980 m in 51 RC holes have been drilled, of which 42 have been at Encuentro South. This target has produced the following intercepts: 9.1 m @ 9.6 g/t Au, 38.2 m @ 2.9 g/t Au, 5.4 m @ 7.8 g/t Au, 19.5 m @ 1.3 g/t Au, 15.2 m @ 1.8 g/t Au and 12.7 m @ 1.6 g/t Au. Single sample intervals are as high as 0.5 m @ 126.5 g/t Au. The mineralisation is of low sulfidation epithermal character, with structurally controlled, multi-event quartz breccias and stockwork zones, hosted in propylitically altered meta-andesites.
  • Gainey Capital Corp. continues drilling at its El Colomo property in Nayarit, now targeting the La Higuerita zone, which is 1,000 meters in length and 80 meters in width. Select samples on this zone run: 0.4 m @ 33.3 g/t Au, 1,550 g/t Ag; 1 m @ 20 g/t Au, 895 g/t Ag; 2 m @ 3.2 g/t Au, 147 g/t Ag; 0.5 m @ 1.5 g/t Au, 491 g/t Ag.
  • Alix Resources Corp. is planning to drill test two target areas on its Elektra project in Sonora. The RC drill program envisages 25 holes on the Tecolote concession, and has filed for the environmental permit after obtaining the approval of the local ejido.

ON MINING

  • Goldcorp Inc. announced on October 7th that activities have resumed at its Peñasquito mine in Zacatecas, after an illegal blockade was removed by the authorities.
  • Endeavour Silver Corp. reported production results from its operations in Mexico during the third quarter 2016. Total production from the three mines was 1.28 M Oz Ag and 14.3 K Oz Au during the period. At Guanaceví, in Durango, 82 K tonnes were processed at an 892 tpd (tonnes per day) rate and a grade of 235 g/t Ag and 0.51 g/t Au, for a production of 542 K Oz Ag and 1,163 Oz Au. At the Bolañitos mine in Guanajuato,  8 K tonnes were processed (1,442 tpd)  @ 76 g/t Ag and 2.3 g/t Au, for  a production of 255 K Oz Ag and 7,875 Oz Au. At the El Cubo mine in Guanajuato, 140.8 K tonnes were processed @ 128 g/t Ag, 1.46 g/t Au. Silver and gold recoveries stand at 78.8% – 87.5% and 80.3% – 86.4% respectively.
  • Mexus Gold US and MarMar Holdings. stated that once the leach pad holds 10 K tonnes, the leaching process will start at its Santa Elena mine in Sonora (not to mistake for First Majestic’s Santa Elena mine, also in Sonora). MarMar’s plan is to ramp-up production to 10 K tonnes per day in an 8 month period.
  • Great Panther Silver Ltd. announced production results for the third quarter 2016. At the Guanajuato mine complex 8.6 K tonnes were processed @ 2.36 g/t Au and 163 g/t Ag, to produce 383.6 K Oz Ag and 5,306 Oz Au, with silver and gold recoveries at 88.9% and 85.8% respectively. At its Topia mine in Durango 13.7 K tonnes were processed @ 322 g/t Ag and 0.49 g/t Au, to produce 126.9 K Oz Ag, 117 Oz Au, 248 tonnes Lead and 324 tonnes zinc, with recoveries at 89.7% and 54.3% respectively for silver and gold.
  • Gold Resource Corp. received the blasting permit (the last permit needed) to start development at its Altagracia project, located 15 km NW from its Arista mine and El Aguila mill complex. Production is deemed to start before the end of the year, or the first quarter of 2017. Oxide mineralization will be processed at the El Aguila idle agitated leach circuit, with a starting 150 tonnes per day processing rate. The last estimate was of 185 K tonnes in the mineralized material category (?) @ 321 g/t Ag and 0.55 g/t Au.
  • Capstone Mining Corp. reported a fatal accident at its Cozamin mine in Zacatecas, where a miner was struck by a piece of mobile equipment.
  • Fresnillo PLC reported third quarter 2016 results, which include 11.8 M Oz Ag and 220 K Oz Au for the period. That means a 6.7% rise in silver production, due mainly to the start-up of the first phase of the San Julian plant in Chihuahua and increased ore processed at Saucito, in Zacatecas. Gold production rose 21%, due to higher volumes and grades from La Herradura and Noche Buena mines in Sonora.
  • Fortuna Silver Mines Inc. announced third quarter 2016 production, which includes numbers from its Mexico operations. At its San Jose mine in Oaxaca, 268.2 K tonnes of ore were processed at an average 3,056 tpd rate, grading 224 g/t Ag and 1.76 g/t Au, with recoveries of 82.9% and 92.1% for silver and gold respectively, to obtain a production of 1.78 M Oz of silver and 13,951 Oz of gold.
  • Timmins Gold Corp. released preliminary production results for the third quarter 2016. At its San Francisco mine in Sonora, 1.79 M tonnes of ore were processed (19,472 tpd), and 3.72 M tonnes of waste moved at a 2.13 strip ratio. The ore treated averaged 0.61 g/t Au, to produce 24,052 Oz Au and 13,868 Oz Ag.
  • Capstone Mining Corp. announced production results from the 2016 third quarter, including from its operations at the Cozamin mine in Zacatecas, where 254.8 K tonnes were processed (2,770 tpd) @ 1.39% Cu, 0.75% Zn, 0.06% Pb and 40 g/t Ag. Recoveries stood at 94.7%, 70%, 14.2% and 71.2%, on the same order, to reach the production of 3,358 tonnes of copper, 1,352 tonnes of zinc, 24 tonnes of lead and 235.3 K Oz of silver.
  • McEwen Mining Inc. presented production results for the third quarter of 2016, including information from its El Gallo mine in Sinaloa, where it produced 11,849 Oz Au.

First Majestic Silver Corp. presented production results for the third quarter of 2016 from its six mines in Mexico, for a total production of 4.52 M Oz Ag, 14,452 Oz Au, 8 M Lb Pb and 1.51 M Lb Zn. During the quarter the company drilled 3,520 metres at Santa Elena in Sonora; 3,681 metres at La Encantada mine in Coahuila; 5,115 metres at La Parilla mine in Durango; 6,643 metres at Del Toro mine in Zacatecas; 7,817 metres at the San Martin mine in Jalisco, 9,515 metres at La Guitarra, in Mexico State.

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  • Fresnillo PLC. announced that the second phase of operations at its San Julian mine in Chihuahua will start on the second quarter of 2017, instead of the fourth quarter of 2016.
  • Baja Mining Corp. (from now on Camrova Resources Inc.) released an update on the Boleo mine status in Baja California Sur, on which owns a 10% interest. High mine operating costs (lower underground mining rates and grades than planned), low metallurgical recoveries and low copper prices are a significant challenge. New underground equipment is being delivered to try different underground mining methods and changes are being made to increase metal recoveries.

ON FINANCING

  • Corex Gold Corp. entered into a subscription agreement to issue 25.3 M common shares at $0.10 per share (or $2.53 M) to Alamos Gold Inc. Upon completion of the issuance, and if H Morgan and Company (HMC) elects not to purchase entitled participation shares, Alamos Gold will own ~19.99% of the shares of the company, HMC 14% and management 9% (Santana, Sonora).
  • Alset Energy Corp. has closed the first tranche of it previously announced re-priced private placement, for gross proceeds of $207.9 K. The financing is still open, and aims to raise up to $1 M (Lithium salars, San Luis Potosi, Zacatecas).
  • Premier Gold Mines Ltd. completed a previously announced non-brokered private placement for aggregate share profits of $4.53 M (Mercedes, Sonora).

ON RESOURCES

  • Avino Silver & Gold Mines Ltd. filed on the SEDAR system the previously announced resource estimate on the San Gonzalo mine, the Avino mine system and the oxide tailings. Total measured and indicated resources include 3.27 Mt @ 109 g/t Ag, 0.54 g/t Au, and 0.29% Cu, and inferred resources in 8.14 Mt @ 98 g/t Ag, 0.61 g/t Au and 0.41% Cu, for a total metallic content of 37.1 M Oz Ag, 215.9 K Oz Au and 42,850 tonnes of copper.

ON DEALS AND CORPORATE ISSUES

  • Corex Gold Corp. granted Alamos Gold Inc. (in connection with the issuance of Corex shares to Alamos) the right to nominate up to two directors of Corex. Alamos has elected not to exercise such right at this time but retains the right to do so in the future (Santana in Sonora).
  • Starcore International Mines Ltd. registered on October 11, 2016 on the United States Securities Exchange Commission (SEC). Transactions on the company’s shares can now be resumed (San Martin mine, Queretaro).
  • Baja Mining Corp. announced the 20:1 consolidation of shares and name change to Camrova Resources Inc. will be effective on October 17th(Boleo, Baja California Sur).

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

On the picture below, a strongly silicified volcanic rock crosscut by an intense quartz veinlet stockwork, in an orogenic gold prospect of the Sonora desert.

rri-10123

Highlights on the First Week of October 2016, Mineral Exploration in Mexico

/ Gambusino Prospector / Leave a comment

During the first week of October, at least 25 press releases were published by companies working in Mexico. ON MEXICO ISSUES, An illegal blockade was terminated by the authorities in Zacatecas. ON EXPLORATION, five companies reported exploration updates on their properties, which include drilling permitting of a property in Sonora, results of two drill holes from a project in Nayarit, massive sulfide and semi-massive sulfide intercepts from underground stations in Chihuahua, drilling to advance a lithium resource estimation in Sonora and the granting of an Environmental Impact Assessment for a new mine in Sonora. ON MINING, one company reported third quarter production results, another one had a shutdown due to an illegal blockade in Zacatecas, while in Queretaro a permit is being sought for the installation of a mill. One other company completed the collection of a 2 k tonne bulk sample in Durango, the controlled remediation and shutdown of a mine in San Luis Potosi is to take three years, and a mine in Sonora will send high grade material to a contract mill.  ON FINANCING, two companies announced the raising of capital, one for CAD$4.29 M, through warrants and the other for $1 M through the amendment of a previous private placement. ON DEALS AND CORPORATE ISSUES, two companies closed the transfer of a producing mine in Sonora, and one other company is to change name and consolidate shares on a 20 to 1 ratio.

ON MEXICO ISSUES

  • Peñasquito mine, Zacatecas. State officers cleared the entrance from an illegal blockade that had been on site for eight days. The State governor, Alejandro Tello, said that he would not bend to meritless claims and announced that the blockade leaders will be investigated.

ON EXPLORATION

  • Mexus Gold US. is performing advance work to obtain the drilling permit at the Scorpio project in Sonora.
  • Gainey Capital Corp. released results from the second and third holes from La Nueva Victoria mineralized zone at its El Colomo property in Nayarit. Significant intercepts include 72.2 m @ 0.41 g/t Au, 20 g/t Ag and 34.2 m @ 1.19 g/t Au, 86 g/t Ag.
  • Consolidated Zinc Ltd. released geologic information on the first seven holes from two new underground drill stations at its Plomosas mine in Chihuahua. While the assays are still awaited, intercepts include 0.35, 0.7, 0.8, 1.25 and 1.8 meters of massive sulfides, as well as a 4 m interband of massive to semi-massive sulfide.
  • Bacanora Minerals Ltd. completed a 4,000 m drilling campaign to upgrade a resource to the measured category on its Sonora property. Ongoing refinement and optimization of the lithium carbonate flow sheet, developed at the pilot plant operations will continue over the next 18 months.
  • Alamos Gold Inc. received final approval of the Environmental Impact Assessment report for phase I of its La Yaqui project in Sonora. Construction activities for the phase I development of the La Yaqui mineral reserve are expected to commence later this year with initial production on track for mid-2017.

ON MINING

  • Goldcorp Inc. announced a controlled shutdown of operations at its Peñasquito mine in Zacatecas, following an illegal blockade by a trucking contractor that began on Sept 26, 2016. The Company has taken all necessary legal steps, including filing criminal charges against the protest leaders and awaits legal enforcement to ensure a swift and orderly end to the illegal blockade.
  • United States Antimony Corp. announced that production from the Wadley and Soyatal mines is being ramped up to replace Australian concentrates by the end of 2016. The company will answer SEMERNAT inquiries on the Puerto Blanco mill site in October, and wait for the response. Pilot-scale production is expected from the Los Juarez caustic leach circuit on the 4Q 2016.
  • Telson Resources Inc. completed the collection of its 2 K tonne industrial scale bulk sample from the El Creston zone on its Tahuehueto project in Durango. The material is being transported to the Andes mill, where processing will take place.
  • New Gold Inc. will continue for three years with the remediation work and closure of its Cerro San Pedro mine in San Luis Potosi.
  • Minera Alamos Inc. is finalizing the Environmental Impact Study and the Environmental Risk Study on La Fortuna project, in Durango. The files will be submitted as soon as the surface use agreement contracts are in place.
  • GoGold Resources Inc. has secured a 150 tonne per day mill to continue milling the high grade material on surface at its Santa Gertrudis mine in Sonora. To date, the Company has mined in excess of 6,000 tonnes of material at an average grade of 13.5 g/t with 3,700 tons already processed at the mill. To the end of September 383 Oz of gold have been poured.
  • Coeur Mining Inc. reported third quarter 2016 production numbers, which include its Palmarejo mine in Chihuahua (their highest production unit). 253.6 K tonnes were mined from underground, at a grade of 123 g/t Ag and 0.08 g/t Au. 274.6 K tonnes were processed, with recoveries of 85.5% Ag and 77.7% Au, producing 933 k Oz Ag and 16.6 K Oz Au. The recoveries were affected by the installation of a new Merril-Crowe processing circuit. The Guadalupe vein is being mined at 2,300 tpd , while the Independencia vein is on track to achieve 1,000 tpd.

ON FINANCING

  • Bacanora Minerals Inc. raised CAD$4.29 M from the exercising of warrants. Bacanora’s last reported cash position was circa CAD$30 M.
  • Alset Energy Corp. announced an amendment to the terms of a previously announced private placement. The company will now raise up to $1 M.

ON RESOURCES

  • Premier Gold Mines Ltd. confirmed a current NI-43-101 Mineral Reserve and Resource estimate for its 100% owned Mercedes mine in Sonora. Reserves stand at 2.9 Mt @ 4.31 g/t Au, 35.7 g/t Ag; measured plus indicated resources (exclusive of reserves) of 2.87 Mt @ 4.14 g/t Au, 48 g/t Ag and 1.2 Mt @ 4.6 g/t Au, 33 g/t Ag of inferred resources. The total reserve and resource base is 7 Mt @ 4.29 g/t Au, 40.2 g/t Ag, for 964 K Oz Au and 9.08 M Oz Ag.
  • Argonaut Gold Inc. completed a 70 hole RC drill program (~10,600 m) to confirm historical gold-silver resource estimates for El Creston deposit at La Colorada mine, in Sonora. The confirmed indicated resource is 14.4 M tonnes @ 0.62 g/t Au and 12.1 g/t Ag and the inferred resources 2.2 M tonnes @ 0.89 g/t Au, 13.3 g/t Ag. Some of the better intercepts include: 32 m @ 1.74 g/t Au, 74 g/t Ag; 39.6 m @ 0.8 g/t Au, 4 g/t Ag: 44.2 m @ 0.86 g/t Au, 5 g/t Ag; 86.9 m @ 0.8 g/t Au, 7 g/t Ag; 27.4 m @ 1.3 g/t Au, 15 g/t Ag; 44.2 m @ 2.1 g/t Au, 16 g/t Ag, 21.3 m @ 2.87 g/t Au, 182 g/t Ag; 73.2 m @ 1.4 g/t Au, 15 g/t Ag.
  • Timmins Gold Corp. announced that it has filed at SEDAR the NI-43-101 technical report of its San Francisco mine in Sonora.

ON DEALS AND CORPORATE ISSUES

  • Premier Gold Mines Ltd. closed the acquisition of the Mercedes mine in Sonora, from Yamana Gold Inc., by buying all shares of Yamana’s subsidiaries that own 100% interest on the mine. The deal involved the payment of US$122.5 M in cash, 6 M common shares from Premier to Yamana and 3 M warrants to obtain Premier shares @ $4.75before the end of September 2018. A 1% NSR applies on the production beyond 450 K Oz Au or after four years since the closing of the deal. Two other properties, La Espera in Sonora, and La Silla in Sinaloa, convey a 2% NSR.
  • Alset Energy Corp. has realized that two of the concessions recently acquired in Mexico convey a considerable amount of annual work expenditures. The recently appointed CEO resigned as results of these new challenges.
  • Alset Energy Corp. Clarified the past news release by stating that two of the concessions optioned require $1.8 M of yearly spending to be probed to the government. The company is taking steps to split the large claims in several smaller concessions to reduce the amount of investment to incur.
  • Baja Mining Corp. is changing its name to Camrova Resources Inc., and consolidating its shares in a 20 to one ratio, going from 340 million common shares to 17 million post-consolidation shares. Baja currently owns a 10% interest in the Boleo copper-cobalt-zinc mine in Baja California.

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, strongly silicified, bleached, and locally brecciated rock with fine grained quartz veinlets and micro-veinlets with minor pyrite.  Part of a low angle fault zone mined for silica. Spotty gold and silver values are present.

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Highlights on the Fourth Week of September 2016, Mineral Exploration in Mexico

/ Gambusino Prospector / Leave a comment

During the fourth week of September, at least 19 press releases were published by companies working in Mexico. This is an almost 100% increment from last week count. ON MEXICO NUMBERS, Met-Mex Peñoles operates one of the biggest non-ferrous metallurgical complexes in the world. ON EXPLORATION, five companies reported exploration updates on their properties, which include ore grade open pit mineable drilling results from properties in Durango and Nayarit, initial exploration results in Sonora, continued exploration in a property with soil and rockchip sampling in Durango and the look for mineralization feeders in Coahuila. ON MINING, a fatality was reported in a mine in Durango, a property continues on development track to start production in October and a significant investment in a metallurgic complex continues.  ON FINANCING, one company announced a non-brokered private placement to raise gross proceeds of $1.5 M. ON DEALS AND CORPORATE ISSUES, Two companies closed the transfer of three properties in Nayarit, Sonora and Durango. Another company announced the acquisition of a new property in Sonora. One other company is to fund a drilling program in Durango, and increase its share in the property from 30% to 60% by doing so. One more company with a property in Sonora declined a proposed merger.

ON MEXICO NUMBERS

  • Met-Mex Peñoles operates one of the non-ferrous metallurgic complexes on the world, with a lead smelter, a lead-silver refinery, an electrolytic zinc refinery and a zinc alloys plant. Additionally, the company operates other plants to produce sulfuric acid, bismuth, antimony trioxide and liquid sulfur dioxide.

ON EXPLORATION

  • Minaurum Gold Inc. released assays from its initial rock chip sampling at the Quintera property in Sonora, with results like 2 m @ 90 g/t Ag; 2 m @ 139 g/t Ag, 0.14% Cu, 0.2% Pb, 0.5% Zn; 2 m @ 427 g/t Ag, 0.3% Cu, 0.3% Pb, 0.4% Zn; 2.5 m @ 232 g/t Ag, 0.6 % Cu, 1.2% Pb, 0.4% Zn and 1 m @ 1,020 g/t Ag, 1.1% Cu, 0.2% Pb, 0.5% Zn.
  • Orex Minerals Inc. and Canasil Resources Inc. released results from five more holes on the phase III diamond drill program on its Sandra Escobar project in Durango. The drill holes extend the Main Zone to the north 50 to 100 m with true width intervals like 35 m @ 106 g/t Ag; 46 m @ 118 g/t Ag; 31 m @ 88 g/t Ag; 29 m @ 40 g/t Ag and 32 m @ 40 g/t Ag. A mineralized zone below the Main Zone includes intercepts like 21 m @ 63 g/t Ag and 18 m @ 48 g/t Ag.
  • Southern Silver Exploration Corp. reported the advance in exploration at its Cerro Las Minitas project, Durango. To date 91 drill holes have been completed for 35,955 meters, with US$8.35 M spent on the property since 2011, defining over 20 M Oz Ag and significant amounts of lead and zinc. In June 2016 was reported the drill intercept of 30.4 m @ 107 g/t Ag, 0.4% Cu, 1.1% Pb and 2.3% Zn in a previously unrecognized deep extension to the Blind and El Sol deposits. The company continues with soil and rock sampling and re-evaluation of geophysical and geochemical surveys, to guide the next phase of drilling which will comprise up to 10,000 m.
  • Silver Bull Resources Inc. provided an exploration update at its Sierra Mojada project in Coahuila. During August and September, 590 line kilometer of airborne magnetic geophysics were completed over the main deposit, targeting structures at depth. The company is looking for source structures for the main deposit, hinted from underground workings and previous drill holes. Major drilling will conduct an initial 3,000 m, six to nine drill holes program to test the idea.
  • Gainey Capital Corp. announced assay results for its first hole on the La Nueva Victoria mineralized zone of its El Colomo property in Nayarit. The mineralized intercept starts at 5 m depth, with 70.85 m @ 0.65 g/t Au, 35 g/t Ag (1.14 g/t AuEq). This hole targeted the center of the silicified vein breccia zone, consisting of grey quartz veining and permeable lithic tuff, of the La Victoria structure at a dip of -60 degrees.

ON MINING

  • Argonaut Gold Inc. reported a fatality on its El Castillo mine, in Durango.
  • Mexus Gold US. announced that its Santa Elena mine is on track to start production on late October.
  • Peñoles informed that continues with its plans to invest US$ 327 M to expand the Zn plant in Torreon, Coahuila, in 120 K tonnes per year. This project involves the direct leaching of concentrates. The electrolysis plant is expected to start operations on the second half of 2017, and the leaching plant in the second quarter of 2018.

ON FINANCING

  • Source Exploration Corp. announced a non-brokered private placement which intends to raise up $1.5 M (Las Minas, Veracruz).

ON RESOURCES

  • Avino Silver & Gold Mines Ltd. completed a new 43-101 compliant resource estimate comprising the San Gonzalo mine, the Avino mine system and the oxide tailings. Total measured and indicated resources include 3.27 Mt @ 109 g/t Ag, 0.54 g/t Au, and 0.29% Cu, and inferred resources in 8.14 Mt @ 98 g/t Ag, 0.61 g/t Au and 0.41% Cu, for a total metallic content of 37.1 M Oz Ag, 215.9 K Oz Au and 42,850 tonnes of copper.

ON DEALS AND CORPORATE ISSUES

  • Silver One Resources Inc. closed the acquisition of a subsidiary of First Mining Finance Corp., which owns three Mexican properties: La Frazada, in Nayarit; Peñasco Quemado, in Sonora; and Pluton in Durango. La Frazada and Peñasco Quemado have historical resource estimates. Silver One issued to First Mining 6 M common shares of Silver One, representing 7.4% of the issued and outstanding shares of Silver One. A 2.5% NSR will apply, with Silver One being able to buy 1.5% of NSR for USD $ 1 M.
  • Mexus Gold US. announced they have a new property with their partner Mar Mar, the San Marco mine in Sonora. The property is located near Puerto Libertad, encompasses 970 acres and is said to have a non-compliant 43-101 resource of 100 K Oz Au.
  • Southern Silver Exploration Corp. owns 70% indirect interest in the Cerro Las Minitas property in Durango, and Electrum Global Holdings L.P. has earned a 30% indirect interest by spending US$3.05 M since May 2015. Electrum has informed that it will fund the required US$1.95 M to increase its indirect interest to 60%.
  • Bacanora Minerals LTD. announced the rebuttal of a proposed merger with Rare Earth Minerals PLC, which owns 19.8% of Bacanora. The proposal offered a 13.1% premium on the Sept. 29 closing price, which was regarded as a low bid.

Content like what you have just read can be seen at  LinkedIn’s Mexico Mineral Exploration Group.

On the picture below, low angle fault zone in strongly silicified rocks at the Puerta del Sol prospect in Sonora. The shear is 2 to 10 meters in width at this location, putting in contact the Aconchi batholith graniodioritic  lower plate with cretaceous volcanic rocks and Mid-Late Tertiary conglomerates in the upper plate.  Spotty gold and silver values (up to 1.7 g/t Au, 192 g/t Ag) on this silica pit.

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Highlights on the Third Week of September 2016, Mineral Exploration in Mexico

/ Gambusino Prospector / Leave a comment

During the third week of September, at least 10 press releases were published by companies working in Mexico. This is the smallest weekly number of news releases on the year to date. ON EXPLORATION, Three companies reported exploration updates on their properties, with high-grade drilling intercepts and the find of a new vein in Sinaloa, a ground mag survey in progress in a property in Sonora and the delivery of a study to process tailings in Mexico State. ON MINING, for the first time on the year, there was no news on mining.  ON FINANCING, Four companies announced the exercise of warrants (CDN$499 K), the extension on debenture payments for $1.75 M, the selling and buying of 4.5 M shares of one company, and the payment of an outstanding balance for $811 K. ON DEALS AND CORPORATE ISSUES, Two companies entered into an agreement to develop a process to treat tailings from a mine in Mexico State.

ON MEXICO NUMBERS

  • Gold production grew 14.4% from 2014 to 2015, reaching 4.3 million ounces, five times the amount mined on 2001. Goldcorp, Fresnillo and Frisco produce 53.2% of the yellow metal, and Sonora is the state with highest output, at 36.7%, followed by Zacatecas, with 27.6% and Chihuahua with 11.3%.
  • Silver production grew 3.3% on 2015, compared to 2014, achieving 191.5 M ounces. This is the sixth year on a row that Mexico is the biggest silver producer in the world, followed by China and Peru. Fresnillo, Goldcorp and Pan American Silver (in that order) produced 42.6% of the total. Zacatecas produces 42% of the silver in the country, followed by Durango with 16.6% and Chihuahua with 13%. Saucito has taken the place of Fresnillo as the largest silver producing mine in Mexico.
  • Largest silver mines. Of the fifteen largest silver producing mines in the world, four are located in Mexico. In 2015 Saucito in Zacatecas was the third largest producer, with 22 M Oz, only behind Dukat (Russia) and Cannignton (Australia), with 22.3 and 22.2 M Oz respectively. Fresnillo is in the fifth place, with 15 M Oz produced, whereas La Colorada (Zacatecas) and Palmarejo (Chihuahua) stand 14th and 15th, having produced 5.3 and 5.1 M Oz respectively in 2015.

ON EXPLORATION

  • Primero Mining Corp. released an exploration update on its San Dimas property in Durango. The high-grade Victoria vein continues to produce encouraging drilling results with true width (TW) intercepts like 1.3 m @ 208.7 g/t Au, 3,037 g/t Ag; 3.5 m @ 11.5 g/t Au, 590 g/t Ag; and 2.3 m @ 12.6 g/t Ag, 817 g/t Ag. On the Lechugilla concession the Causitas vein, located on a “window” in post-mineral cover, has been traced over 200 m length, with widths of up to 6 meters. Channel sampling includes 4.5 m @ 7.1 g/t AuEq and 3.5 m @ 5.0 g/t AuEq. Two other veins have been located in the proximity.
  • Riverside Resources Inc. announced further work is proceeding at its project Thor, in Sonora; Thor is being advanced as a “Designated Project” on the alliance for porphyry copper exploration with Antofagasta PLC in Sonora. A ground magnetic survey is underway, and an initial 1,200 m drill campaign is planned for this fall.
  • Candente Gold Corp. announced that Sun River Gold has delivered test results on a treatment process for the tailings of El Oro, in Mexico State.

ON FINANCING

  • Silver Bull Inc. announced the expiry of share purchase warrants and the exercise of warrants prior to expiry for gross proceeds of CDN$499 K.
  • Bacanora Minerals Ltd. announced Igneous Capital has agreed to sell 4.5 M shares in Bacanora, taking its stake in the company to 9.73%, whereas Rare Earth Minerals PLC has agreed to acquire 4.5 million shares in Bacanora, after which its interest in the company’s issued share capital will be 19.8%.
  • Cyprium Mining Corp. announced that the holders of $750 K in principal of unsecured debentures bearing interest at 12% approved the extension of the maturity date from February 2017 to February 2019, and to allow past due and future interest to be payable through the issuance of common shares. The company also extended the maturity of $1 M of 12.5% bonds from March 2018 to January 2019.
  • Oroco Resource Corp. received $811.7 K from Goldgroup Mining Inc. in settlement of the outstanding balance of all debts due being the remaining principal and accrued interest from a US$1.5 M promissory note, the VAT (IVA) refund due to Oroco and a break fee payable to Oroco. The company continues to hold a scalable royalty on gold production from the Cerro Prieto mine in Sonora.

ON DEALS AND CORPORATE ISSUES

  • Candente Gold Corp. announced it entered, on March 16th, into an agreement with Sun River Gold (private Nevada Company) granting Sun River the right and option to earn 51% interest in the tailings, upon developing and demonstrating at its own cost, an economically viable process to treat the tailings. SRG has made, and continues to make, all payments required as per the Agreement and has delivered to the Company certain test results and reports.

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, reeds from a present day hot spring in Queretaro State.

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Highlights on the Second Week of September 2016, Mineral Exploration in Mexico

/ Gambusino Prospector / Leave a comment

During the second week of September, at least 22 press releases were published by companies working in Mexico. ON EXPLORATION, Exploration seems to be picking up, reflecting the financing rounds of the earlier part of the year. Nine companies reported exploration work, including five reporting drilling results in Durango, Sonora and Puebla properties. Riverside Resources is doing soil sampling and ground magnetics in Sonora; Radius staked and then optioned lithium properties in Chihuahua and Coahuila; Minaurum optioned a property in Sonora and San Marco Resources probed there is still interesting open ground by staking three different properties in Sonora. ON MINING, GoGold is to build a processing plant at its Santa Gertrudis property in Sonora, Americas Silver is to begin development at its San Rafael mine in Sinaloa and Starcore International reported first quarter 2017 results.  ON FINANCING, Three companies announced closed non-brokered private placements for gross proceeds of $6.1 M. ON RESOURCES; Alamos Gold released an updated mineral resource estimate for La Yaqui project, in Sonora. ON DEALS AND CORPORATE ISSUES, Endeavour Silver entered into an agreement with Silver Standard to obtain 100% interest on several properties in Chihuahua.

ON EXPLORATION

  • Orex Minerals Inc. released results from the III phase drilling campaign at its Sandra Escobar property in Durango. True width intercepts from two holes in the Main Zone include 46 m @ 113 g/t Ag and 56 m @ 114 g/t Ag, while intercepts from the Burro Zone, 300 m to the SW include 24 m @ 144 g/t Ag, 4.5 m @ 51 g/t Ag and 8.2 m @ 32 g/t Ag, in three different holes. A second low-grade deeper horizon of permeable horizon tuffs similar to the Main Zone in texture has been identified stratigraphically below the Main Zone.
  • Alamos Gold Inc. continues exploration at its La Yaqui and Cerro Pelón projects in Sonora. At La Yaqui a new resource base was announced (see below), whilst only 25% of the 1 km by 0.9 km alteration anomaly has been explored. Currently 8 rigs are drilling, with an additional 10 K meters planned by year end. Given the good results obtained at Cerro Pelon, with a number of new targets identified, the submission of the Environmental Impact Assessment (Manifiesto de Impacto Ambiental) has been postponed while the size of the system is better constrained by exploration and drilling.
  • Riverside Resources Inc. announced work has begun by partner Centerra Gold Inc. at its Glor gold project in Sonora. Activities to follow include soil sampling and a 136 line-km of ground magnetics program. Next on line are 20 line-kms of induced polarization surveying and 1,800 m of channel sampling. Drill targeting will be done with the information gathered. The average for 155 samples collected at this orogenic style mineralization is 0.51 g/t Au, with a peak of 18.9 g/t Au.
  • Radius Gold Inc. staked four brine projects in Chihuahua and Coahuila, covering 37 K hectares (370 Square kilometers).
  • Minaurum Gold Inc. optioned the La Quintera silver project in the Alamos district in Sonora. The property covers 4,698 has, includes the La Quintera, La Aduana and Minas Nuevas old mines. The district “…is estimated to have produced more than 120 Moz of silver from about 1680 to the early 1900s. Vein widths average 4m but locally range up to 20m. The primary target vein has a strike length of 3.5km and the entire vein system measures more than 7 km long.”. The six-year deal involves a total of $2.6 M (mostly on production start), 6 M shares and a 2% NSR.
  • Almaden Minerals Ltd. released assay results from three holes that intercepted mineralization outside the PEA defined pit at its Ixtaca property in Puebla. The drillholes present multiple mineralized intervals, like 22.5 m @ 1.1 g/t Au, 19 g/t Ag and 15 m @ 0.5 g/t Au and 72 g/t Ag in one hole and 5.1 m @ 2.4 g/t Au, 274 g/t Ag; 20.7 m @ 0.2 g/t Au, 88.6 g/t Ag; 33.7 m @ 0.8 g/t Au, 77 g/t Ag and 13 m @ 1.9 g/t Au, 43 g/t Ag in the second hole. Work continues to advance the pre-feasibility (PFS) study and an environmental permit application.
  • San Marco Resources Inc. announced the staking of three properties in Sonora, on targets generated with GlobeTrotters Resource Corp. Three areas are in north and northeastern Sonora, covering 25,967 has under the projects name of La Caridad Este, Agua Zarca, and La Pitahaya. The three properties show large alteration zones, some with high gold stream sediment or rock chip results. The company is also participating on the staking of four other properties under the “lottery” system in Mexico, same that still have to be awarded.
  • Oceanus Resources Corp. reported results from seven core holes completed during July and August in its El Tigre property in Sonora. Most of the holes were on the central part of the 1.6 km long deposit, with true width intervals estimated to be 75–90% of core length. Significant intersections reported:121.1 m @ 1 g/t Au, 27 g/t Ag (including 19.7 m @ 2.6 g/t Au, 40 g/t Ag); 89.7 m @ 0.6 g/t Au, 30 g/t Ag; 6.2 m @ 1.2 g/t Au, 37 g/t Ag and 63.8 m @ 0.67 g/t Au, 11.2 g/t Ag; 79.2 m @ 0.8 g/t Au, 16 g/t Ag; 61.6 m @ 0.49 g/t Au, 12 g/t Ag.
  • SilverCrest Metals Inc. released results from 5 more holes from its Las Chispas property in Sonora. Significant true width intervals in Las Chispas vein include 1 m @ 2.3 g/t Au, 306 g/t Ag; 1 m 5 g/t Au, 706 g/t Ag; 1 m @ 1 g/t Au, 143 g/t Ag. Adjacent Footwall vein results include 1.0 m @ 0.9 g/t Au, 113 g/t Ag and 3 m @ 0.3 g/t Au, 91 g/t Ag. A non-resource 43-101 reported is expected to be finished on Q4 2016, and the first resource estimation by the first half of 2017.

ON MINING

  • GoGold Resources Inc. is going ahead with the construction of a cyanide vat leaching plant at its Santa Gertrudis property in Sonora, instead of the heap leach process envisaged on the 2014 PEA. The company expects a 4 to 6 months development schedule budgeted at $10 M, starting on October 2016, to initiate with a 2 K tpd production.
  • GoGold Resources Inc. work at its Parral (Chihuahua) tailings operations has been negatively affected by higher than average rains. GoGold has been mining high grade ore at its Santa Gertrudis mine in Sonora to make up for the loss in production.
  • Americas Silver Corp. has approved construction at its San Rafael Zn-Pb-Ag project in the Cosalá district in Sinaloa. The project will utilize the company’s existing infrastructure at its Cosalá operations, with a $20 M budget, and expecting to see commercial production by Q3 2017.
  • DynaResource Inc. reported 4,460 tons processed during August, at an average grade of 11.75 g/t Au. The pilot mill is operating at 173.5 tonnes per day. The company also stated its production cost has been $592 per gold ounce for the first six months of the year.
  • Starcore International Inc. reported its first quarter 2017, which include the production of 4.2 K Oz Au and 27.7 K Oz Ag, milling 66.1 K tonnes @ 2.17 g/t Au, 16.2 g/t Ag, with 86% and 46% recoveries for gold and silver respectively, and an operating cost of $853 per AuEq ounce. Cash and short-term investment is $8 M.

ON FINANCING

  • Oceanus Resources Corp. closed a non-brokered private placement to raise gross proceeds of $1.75 M (El Tigre, Sonora).
  • Wealth Minerals Ltd. closed a non-brokered private placement for gross proceeds of $2.56 M (Coronado, Chihuahua).
  • Prospero Silver Corp. closed the non-brokered private placement previously announced, for gross proceeds of $1.85 M (Baborigame, Chihuahua, other projects in Chihuahua, Durango, Hidalgo).

ON RESOURCES

  • Alamos Gold Inc. reported a an updated 43-101 compliant mineral resource estimate for its La Yaqui project in Sonora, where reserves and resources combined now stand at 536 K Oz Au, a 93% increase since December of last year. The feat was accomplished by drilling 27,201 m in 132 holes. Mineral reserves and resources at La Yaqui are oxide and amenable to heap leaching based on preliminary metallurgical testing. Initial production is expected by mid-2017.

ON DEALS AND CORPORATE ISSUES

  • Endeavour Silver Corp. entered into a definitive agreement with Silver Standard Resources Inc. to acquire 100% interest in the “Parral properties”, Veta Colorada, La Palmilla and San Patricio. Endeavour will pay $6.0 M of shares, $200 K of shares by every million silver ounces on a 43-101 report to be prepared and 1% NSR. Endeavour is to invest a minimum of $2 M on a two year period, and produce the resource estimate within one more year. The properties include veins traceable for over 8 km, with Veta Colorada being up to 40 m thick. Historic resources for Veta Colorada are 32 M Oz Ag in 4 Mt @ 248 g/t Ag, and 15 M Oz Ag in 1.5 Mt @ 300 g/t Ag in the Remedio-Argentina vein. IMSSA worked the properties until 1990.
  • Radius Gold Inc. optioned three recently staked lithium properties in Chihuahua and Coahuila to Advantage Lithium Corp.

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

On the picture below, argillitized and silicified felsic tuffs with epithermal quartz veining in Villa de Reyes, San Luis Potosi. A post-mineralization ignimbrite unit can be seen on the background.

Highlights on the First week of September 2016, Mineral Exploration in Mexico

/ Gambusino Prospector / Leave a comment

During the first week of September, at least 19 press releases were published by companies working in Mexico.  ON MEXICO NUMBERS, Six companies produced 69% of the silver in Mexico in 2015. Mexico accounted for 80% of the primary lead production of Latin America in 2015. ON EXPLORATION, In Sonora, one company released drilling results; another one started a drilling program and one more mobilized a second drill rig. In Durango a company started a soil sampling program, in Nayarit three holes have been completed and waiting for results, while in Zacatecas a company is waiting for the permit to begin drill pad construction. ON MINING, US Antimony is waiting for the environmental permit for a cyanide plant. Mexus Gold continues with the crushing of the leach pad filter. Corex Gold has received the environmental permit and has begun leach pad construction. Pan American Silver updated on the expansions of its mines in Chihuahua and Zacatecas.  ON FINANCING, Two companies announced non-brokered private financing rounds for gross proceeds of $3.6 M, and one company announced a ten to one consolidation of shares. ON DEALS AND CORPORATE ISSUES, Santacruz Mining acquired the right to work for 15 years the Cinco Minas mine in San Luis Potosi, Source Exploration extended an option payment on three concessions at its Las Minas property in Veracruz, and Goldcorp hired Bank of Nova Scotia to manage the sale of its Los Filos mine in Guerrero.

MEXICO NUMBERS

  • Fresnillo PLC produced 24% of the silver in the country during 2015, Goldcorp 14%, Pan American Silver 7%, First Majestic 7%, Peñoles 7%, Frisco 5% and Grupo Mexico 5%. Silver production was 191.5 million ounces, 3.3% less than in 2014.
  • Peñoles produced 100% of the Mexican production of primary lead at its Torreon refinery in Coahuila, and about 80% of Latin American production. Primary lead production represents 35% of lead production in Mexico, with 65% produced by recycling of scrap lead. In 2015 total production amounted to 212,900 tonnes, 8.2% higher than the prior year, and representing about 3% of world production.

ON EXPLORATION

  • Southern Silver Exploration is to start a new soil sampling program at its Cerro Las Minitas property in Durango. The work adds to previous geochemical and geophysical work by southern, and aims to produce drilling targets on a zone 4 km SW of the areas with defined resources.
  • Millrock Resources Inc. announced it has initiated, along Centerra Gold Inc. partner, a drilling program at its Los Chinos gold project in Sonora. The drilling program is planned to consist of at least ten holes totaling approximately 2,000 meters, and will test the El Camino zone, where anomalous gold, lead and arsenic has been sampled on an area 700 m long and up to 500 m wide, coupled with soil and geophysical anomalies.
  • Defiance Silver Corp. is expecting the issuing of the environmental permit, which was applied for in mid-July. Once granted, the company will be able to build 39 drill pads that will allow for the drilling below of the Guadalupe and Esperanza shoots, and on the extension to the Veta Grande system in Zacatecas.
  • SilverCrest Metals Inc. announced additional drill hole results from the William Tell vein within its Las Chispas project in Sonora. The drilling defines a new area some 300 m long, still open on strike and at depth with >400 g/t AgEq over estimated true widths (TW) of 0.8 to 1.5 meters. Results include (TW) 1.5 m @ 2 g/t Au, 683 g/t Ag; 0.9 m @ 2.4 g/t Au, 229 g/t Ag; 3.2 m @ 1.1 g/t Au, 141 g/t Ag and 1.3 m @ 1.9 g/t Au, 352 g/t Ag. Two newly identified veins adjacent to the William Tell vein run 0.8 m @ 4.8 g/t Au, 364 g/t Ag and 0.9 m @ 6.5 g/t Au, 395 g/t Ag.
  • Gainey Capital Corp. announced that the first three holes at its El Colomo property in Nayarit have been completed on the La Nueva Victoria zone, and the samples of the first hole sent for assaying. The drilling continues on the La Higuerita/El Arrayan zones.
  • Oceanus Resources Corp. has mobilized a second drill rig to its El Tigre property in Sonora.

ON MINING

  • US Antimony Corp. announced the environmental permit for the cyanide leach plant at the Puerto Blanco mill site in Guanajuato is being reviewed by SEMERNAT, expecting an initial response by mid-September. When the permit is issued, the facility will recover gold and silver from the tailings of the flotation mill. The Company has an inventory of Los Juarez concentrates from the flotation tests.
  • Mexus Gold US. continues with the crushing of the heap leach pad filter material, which should be completed soon, at its Santa Elena mine in Sonora. After some delays due to heavy rains at the site, the company expects to start production in October.
  • Corex Gold Corp. has received the final permit required for the heap leach gold operations at its Santana project in Sonora. Heavy equipment was mobilized and begun ground preparation and construction of its initial heap leach pad that will allow for the pilot testing of the Santana deposit.
  • Pan American Silver Corp. has commissioned a 618 m deep shaft at its La Colorada mine in Zacatecas, with zero lost-time accidents in its construction. The work remaining to complete includes a new filter plant, power line and underground development. At Dolores mine in Chihuahua, a new 98 kilometer, 115 KV power line connects the mine to the national power grid. The La Colorada expansion project commenced in 2014 at an estimated cost of $163.8M, and the Dolores expansion has an estimated investment of $112.4, both projects to be completed by the end of 2017.

ON FINANCING

  • Source Exploration Corp. announces its intention to proceed with a consolidation of its issued and outstanding common shares on the basis of one (1) post-consolidation Common Share for every ten (10) pre-consolidation Common Shares (Las Minas, Veracruz).
  • Wealth Minerals Ltd. arranged a non-brokered private placement for gross proceeds of up to $2.17 M (Coronado and Valsequillo, Chihuahuha).
  • Oceanus Resources Corp. announced a non-brokered private placement for $1.5 M (El Tigre, Sonora).

ON DEALS AND CORPORATE ISSUES

  • Santacruz Silver Mining Ltd. acquired the right to explore, develop and mine the Cinco Estrellas gold-silver mine in San Luis Potosi for the next 15 years. The company plans to soon begin mining and send the mineralized material to the company’s Rosario mine milling facility, which is in close proximity to Cinco Estrellas.
  • Source Exploration Corp. has signed a letter of intent (LOI) to extend the Pepe, Pepe Tres and San Jose concessions (at its Las Minas property, Veracruz) purchase agreement. The LOI provides for an extension to the term of the option agreement by an additional one year to December 2017.
  • Goldcorp Inc. has hired Bank of Nova Scotia to lead the sales process of Los Filos mine, in Guerrero. Its net asset value was estimated at $617 M in an August RBC Capital Markets report.

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, felsic tuffs near Villa de Reyes, San Luis Potosi.

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Highlights on the fifth week of August 2016, Mineral Exploration in Mexico

/ Gambusino Prospector / Leave a comment

During the fifth week of August, at least 17 press releases from companies working in Mexico were published.  ON MEXICO NUMBERS, Mexico stands as one of the main refined silver producers of the world. On gold, Mexico was just shy from 4 million ounces produced during 2015. ON EXPLORATION.  Two companies released drilling results from its properties in Durango, whilst a third one announced the commencement of a maiden RC campaign in Chihuahua. ON MINING, Red Tiger and Santacruz Silver released their second quarter 2016 financial and operational results. ON FINANCING, Two companies completed a private financing and a sophisticated investors placement, for gross proceeds of $3 M. ON DEALS AND CORPORATE ISSUES, Canuc Resources and Santa Rosa Mining completed an amalgamation agreement, Goldgroup announced a favorable ruling from an arbitration process on its legal battle with Dyna USA, and Alset Energy informed of the assembly of a team to manage its recently acquired lithium properties package in Mexico.

MEXICO NUMBERS

  • Mexico stands as one of the main refined silver producers of the world, with an output of 80 M Oz refined silver in 2015. In the world the total production for the year was 1,014 million ounces, including secondary sources like scrap silver. Peñoles and Grupo Mexico are the only companies in Mexico to produce refined silver.
  • Mexico produced 3.98 million ounces of gold in 2015, of which 28% was delivered by Goldcorp, 19% by Fresnillo, 10% by Frisco, 9% by Agnico Eagle, 6% by Alamos Gold, 4% by Primero Mining and 3% by Argonaut Gold.

ON EXPLORATION

  • Orex Minerals Inc. reported results on the phase III drilling campaign on its optioned property from Canasi,l Sandra Escobar, in Durango. In-fill holes report up to 58 m true width @ 192 g/t Ag, 48.5 m @ 129 g/t Ag and 47.6 m @ 56 g/t Ag, while two other step out holes reported 7.2 m @ 67 g/t Ag and 45.3 m @ 90 g/t Ag.
  • Silver Spruce Resources Inc. announced a maiden RC drill program at its property Pino de Plata in Chihuahua. Three target areas are to be tested: El Terrero, with assays up to 557 g/t Ag (up to 6 holes planned); Theodora vein, in several areas, with up to 553 g/t Ag (up to 3 holes planned); and Santa Elena – Gossan, aiming to encounter replacement Ag-Pb-Zn-Cu deposits (3 to 5 holes planned).
  • Golden Minerals Co. provided results from the ongoing drilling campaign at its Rodeo project in Durango. The first five holes of the 12 hole program show true width intervals of up to 50.7 m @ 0.46 g/t Au, 13 g/t Ag; 74.7 m @ 0.63 g/t Au, 20 g/t Ag; 69.2 m @ 0.44 g/t Au, 16 g/t Ag; 58.6 m @ 0.69 g/t Au, 19 g/t Ag and 52.2 m @ 0.78 g/t Au, 15 g/t Ag, including 12.9 m @ 2.58 g/t Au, 7 g/t Ag. The “results show a gold and silver bearing epithermal vein and breccia system with encouraging gold and silver values over an approximate 50 to 70 meter true width”.
  • Alset Energy Corp. announced the translation of a 1992 study by the Consejo de Recursos Minerales (now Servicio Geologico Mexicano, SGM) in which the process of brines extracted from beneath the salars produced accumulations of lithium of up to 2.1% Li on the brines, and up to 0.14% Li on precipitated salts.

ON MINING

  • Red Tiger Mining Inc. reported its financial and operational results for the second quarter 2016. Mined 70.6 K tonnes of ore, and moved 420 K tonnes of waste at a waste/ore strip ratio of 5.9, with an average ore grade @ 1.16% Cu, for the production of 579 tonnes of copper cathode at its Luz del Cobre mine in Sonora. Cash cost per Cu pound stood at $1.29.
  • Santacruz Silver Mining Ltd. reported its financial and operational results for the second quarter of 2016. The company milled 26.4 K tonnes of ore to produce 272 K AgEq ounces at a cash cost of $11.57 per AgEq ounce and an all-in sustaining cost of $14.60 per AgEq ounce. The Veta Grande mill is operating at 400 tpd, mining from the La Flor, Armados, San José and Veta Grande veins. New equipment delivered during the period is increasing the mining rate, aiming to exit 2016 with a 800 tpd rate, while expansion of the milling and crushing circuits will take plant capacity to 1,500 tpd.

ON FINANCING

  • Santana Minerals Ltd. announces the completion of placement to sophisticated and professional investors to raise $2 M (Namiquipa, Chihuahua; Cuitaboca, Sinaloa).
  • Argentum Silver Corp. closed its private placement with Sprott Mining Inc. for 15 M units at a price of $0.07 per unit (to gross $1,050,000?). SMI now owns 56.9% of issued and outstanding shares on a non-diluted basis.

ON DEALS AND CORPORATE ISSUES

  • Canuc Resources Corp Corp. and Santa Rosa Mining Corp. completed the agreement to combine Canuc and Santa Rosa by way of an amalgamation of Santa Rosa and a wholly-owned subsidiary of Canuc, to form one company as a wholly-owned subsidiary of Canuc .
  • Goldgroup Mining Inc. announced a favorable ruling from a process at the American Arbitration Association regarding the long time legal dispute with Dyna USA Inc. on its participation on the San Jose de Gracia project in Sinaloa.
  • Alset Energy Corp. announced the assembly of a technical and business team for the exploration and advancement of the Mexican lithium salars recently acquired by the company in Zacatecas and San Luis Potosi.

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, Chalcopyrite crystals on quartz, from the Esmeralda breccia in the Inguarán District, Michoacán.

Inguaran Feb 2011 044

Highlights on the fourth week of August 2016, Mineral Exploration in Mexico

/ Gambusino Prospector / Leave a comment

During the fourth week of August, at least 17 press releases from companies working in Mexico were published, with one company producing second quarter financial reports, and one other reporting its first quarter. ON MEXICO NUMBERS, funds from the 2014 introduced mining tax commence to flow in Michoacan, Mexico continues as the top silver producer of the world, and gold production is decreasing during the first six months of 2016. ON EXPLORATION, Two companies presented exploration updates: Gold Resource reported more high-grade results of its brownfield exploration in Oaxaca, while Azure Minerals significantly extended by drilling the gold mineralized zone at its property in Sonora. ON MINING, Starcore presented second quarter 2016 production results for its first quarter, and Impact Silver presented its financial results for the second quarter. Cyprium released high-grade channel sample results from an oxide ore body. Timmins Gold presented a new mining plan for its Sonora property that would see operations until 2023. Defiance Silver assured land access in Zacatecas and Telson Resources started a bulk sampling program in Durango. ON FINANCING, One company completed a private placement for gross proceeds of $1.2 M and an additional non-brokered subscription for $300 K.  ON RESOURCES, Timmins Gold advanced numbers on a technical report still to be presented on its mine in Sonora. ON DEALS AND CORPORATE ISSUES, First Mining sold three properties to BRS Ventures. DYNA issued some statements regarding its legal battle with Goldgroup over ownership participation levels in a property in Sinaloa. Oremex changed name and Arian Silver extended a LOI on a tailings project in Zacatecas.

MEXICO NUMBERS

  •  Michoacan. Seven municipalities with mining activities will soon receive the approximately US$3.55 M dollars on mining taxes collected by the federal government during 2014 from the State: Lazaro Cardenas, Churumuco, Aquila, La Huacana, Arteaga, Chinicuila and Morelia. The resources are set to be applied mainly on infrastructure projects in the communities.
  • CAMIMEX (Camara Minera de Mexico). Mexico is the world leader in silver production for sixth year in a row, producing 191.5 M Oz of silver, 3.3% more than in 2014. The investment expected in the next few years in new mines and processing capacity expansion amounts to $854 M dollars.
  • Gold production by the main mining companies in Mexico decreased 15% in the first half of 2016. Goldcorp’s Peñasquito in Zacatecas presented a 65% production reduction, mainly due to an expected ore grade decline. Frisco produced 9% less gold, due to recovery issues at its El Coronel mine in Zacatecas. Other enterprises with decreased production include Primero Mining (36.7%), New Gold (28.8%), Argonaut Gold (22.6%) and Alamos Gold (4.3%). Companies that presented increased gold production during the first half of 2016 include Peñoles (22%), Grupo Mexico (36%), Pan American Silver (18%) and Agnico Eagle (0.1%).

ON EXPLORATION

  • Gold Resource Corp. reported more high-grade results from infill drilling of the Altagracia vein at the El Aguila project in Oaxaca. The drillholes intercepted multiple parallel veins, with results up to 8.2 m @ 9.1 g/t Au, 75 g/t Ag, 1.8% Cu, 3.4% Pb, 8.8% Zn; 4.9 m @ 3.65 g/t Au, 42 g/t Ag, 0.59% Cu, 1.2% Pb, 9.3% Zn; 7.9 m @ 6.9 g/t Au, 618 g/t Ag, 0.8% Cu, 1.7% Pb and 3.4% Zn; and 5 m @ 1.47 g/t Au, 105 g/t Ag, 1% Cu, 1% Pb and 6.4% Zn. The Switchback system contains multiple parallel high-grade polymetallic veins with more than 630 K tonnes of mineralized material, and is still open in all directions.
  • Azure Minerals Ltd. significantly extends the gold mineralized zone at the Loma Bonita target at its Alacran property in Sonora. Gold mineralization commences at or near surface, and is hosted in the oxide zone, over a length of 400 m and up to 150 m in width, with mineralization remaining open in all directions. Best drill intercepts include (core) 49.5 m @ 1.59 g/t Au, 29 g/t Ag; 111 m @ 0.81 g/t Au, 18 g/t Ag; (RC) 7.1 m @ 0.99 g/t Au, 50 g/t Ag; 33.9 m @ 0.41 g/t Au, 12 g/t Ag; and 14 m @ 1.59 g/t Au, 36 g/t Ag. Drilling at Mesa de Plata Norte has not produced encouraging mineralization and alteration intervals, and drilling has shifted to the Cerro San Simon and Cerro de Enmedio targets.

ON MINING

  • Starcore International Mines Ltd. reported production results for its first quarter 2016 (ended on July 13th), milling 66 K tonnes of ore @ 2.17 g/t Au and 16 g/t Ag, for the production of 4,207 Au Eq ounces at a recovery rate of 86.4% for gold and 45.7% for silver.
  • Cyprium Mining Corp. released results from 36 channel samples collected from an oxidized part of the Santo Domingo orebody (underground). The samples average 3 m @ 30.2% zinc, mainly as hemimorfite.
  • Timmins Gold Corp. presented an updated technical report in which mining is to proceed at its gold San Francisco mine in Sonora until 2023, with decreasing production from 90-100 K Oz/year to 45-50 K Oz gold per year by 2022.
  • Defiance Silver Corp. has signed a land access agreement for its San Acacio project in Zacatecas.
  • Telson Resources Inc. has initiated the collecting of a 2 K tonnes bulk sample from the El Creston area on its Tahuehueto property in Durango.
  • Impact Silver Inc. announced its financial results for the second quarter of 2016. Total tonnes milled were 45.1 K tonnes at an average mill feed of 180 g/t Ag, producing 236 K Oz silver. The company focus is in developing high grade ore shoots in a number of targets.

ON FINANCING

  • Marlin Gold Ltd. Completed its previously announced bought deal brokered private placement, for gross proceeds of $1.2 M. and an additional non-brokered subscription for $300 K.

ON RESOURCES

  • Timmins Gold Corp. advanced numbers on a new technical report (still to be filed) which includes updated mineral reserves and resources to the end of July for its San Francisco mine in Sonora. Reserves stand at 32.1 M tonnes @ 0.59 g/t Au, containing 635 K Oz Au, (or 76 M tonnes @ 0.65 g/t Au as resources, including reserves, for 1.1 M Oz Au), using a gold price of $1,250 per ounce. If a $1,350 price per ounce is utilized, the resources increase by almost 70%.

ON DEALS AND CORPORATE ISSUES

  • First Mining Finance Corp. signed an agreement with BRS Ventures Ltd. under which First Mining will sell all the issued and outstanding shares of Minera Terra Plata SA de CV. a subsidiary of First Mining, which owns the Peñasco Quemado (Sonora), La Frazada (Nayarit) and Pluton (Durango) properties.
  • Oremex Silver Inc. changed its name to Monarca Minerals (Tejamen, Durango).
  • Dyna Resource de Mexico SA de CV. Issued some statements regarding its San Jose de Gracia property in Sinaloa, and the legal dispute with Goldgroup on ownership participation levels. According to the release, DynaResource Inc. owns 80% of the outstanding share capital of Dyna Mexico, while Goldgroup is entitled to 20%.
  • Arian Silver Corp. Announced it has secured an extension on its exclusive right to evaluate the gold and silver tailings Noche Buena project in Zacatecas, held by Tierra Nueva Mining Ltd., to October 26th, 2016. A 2012 technical report on the tailings outlined an indicated mineral resource of 1 M tonnes @ 3 g/t Au and 55 g/t Ag, or about 100 K Oz Au and 1.7 M Oz Ag.

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, geologist Guillermo Contreras looking at rocks on a pillar of the quartz veinlet swarm mined at the Cerro Hueco workings in Durango.

Pilar3

Highlights on the third week of August 2016, Mineral Exploration in Mexico

/ Gambusino Prospector / Leave a comment

During the third week of August, at least 19 press releases from companies working in Mexico were published, with several companies producing second quarter operational and/or financial reports. ON EXPLORATION, Eight companies presented exploration updates: SilverCrest reported high-grade underground channel sample results from its property in Sonora, while Mag Silver reported impressive drill results from its JV property in Zacatecas. Prospero Silver announced more work on its properties in Durango, Chihuahua and Hidalgo, and Evrim released sampling results at its property in Chihuahua. Almadex presented results from a second interval of a deep drillhole that is still ongoing, at its property in Veracruz. Sierra Metals presented brownfield exploration around its mines in Chihuahua, Excellon initiated a large drilling campaign at its mine in Durango and Minera Alamos staked more ground around its property in Durango. ON MINING, Sierra Metals. Mag Silver, Avino Silver and Goldgroup presented second quarter 2016 operational and/or financial results. Mexus completed liner installation on the leach pad at its JV operation in Sonora, Cyprium Mining began to extract mineralized back fill material from its mine in Chihuahua. Mexico produced 785 K tonnes of zinc during 2015, with 3/4 of that production realized on 12 mines.  ON FINANCING, two companies announced the closing of financing rounds, for total gross proceeds of $0.8 million.

MEXICO

  • CAMIMEX (Camara Minera de Mexico). According to this mining industry organization, Mexico produced 4.3 million ounces of gold in 2015, 14.4% more than in the previous year, and more than five times the 756 K Oz Au produced in 2001.

ON EXPLORATION

  • SilverCrest Metals Inc. reported more underground sampling results from its Las Chispas property in Sonora. New channel sample results from the 650 Level on the William Tell vein average 1.1m @ 3.2 g/t Au and 518 g/t Ag over continuous strike length of 21 m, and on the 450 Level 2.1 m @ 5.7 g/t Au, 257 g/t Ag average over continuous strike length of 30 m. Individual samples include 0.93 m @ 10.8 g/t Au, 1,895 g/t Ag; 1.12 m @ 9.4 g/t Au, 1,910 g/t Ag; 4.2 m @ 14.1 g/t Au, 225 g/t Ag and 2 m @ 14.2 g/t Au, 293 g/t Ag. Approximately 4 km of underground workings have been accessed with an additional 7.5 km to be opened and explored over the next several months.
  • Mag Silver Corp. reported the confirmation and extension of wide high-grade mineralization from the Deep Zone discovery on the Minera Juanicipio JV property (Fresnillo plc 56%; MAG 44%) previously announced. “Mineralization is traceable over a strike length exceeding 800 metres and to a depth of 200 to 300 metres beneath the current resource estimate. Mineralization widths range from approximately 5 metres to over 29 metres…”. On the East Vein the best intercept is 29.85m true width (TW) @235 g/t Ag, 0.5 g/t Au, 4.76% Pb, 5.79% Zn and 2.38% Cu; on the West Vein the best new hole cut 22.9 m TW @ @119 g/t Ag, 1.1 g/t Au, 4.2% Pb, 11.9% Zn and 0.27% Cu. The drilling also discovered the Anticipada Vein, which has been cut in five holes, of up to 6.68 m TW @ 105 g/t Ag, 2.69 g/t Au, 3.59% Pb, 10.79% Zn and 0.23% Cu. Five rigs on the surface and one underground continue with the drilling program. The impressive Fresnillo district continues to deliver extraordinary drill results.
  • Prospero Silver Corp. announced more exploration to follow at its projects Petate (Hidalgo), Pachuca Southeast (Hidalgo), Matorral (Durango), Bermudez (Chihuahua) and San Luis del Cordero (Durango).
  • Evrim Resources Corp. released exploration results from its Cerro Cascaron property in Chihuahua. Channel sample results include 2.6 m @ 6 g/t Au, 28 g/t Ag; 4.3 m @2.2 g/t Au, 11 g/t Ag and grab samples @ 982 g/t Ag at La Cascarita and up to 9.2 g/t Au and up to 599 g/t Ag at Divisadero.
  • Almadex Minerals Ltd. reports a second mineralized interval on the same hole that saw a shallower interval reported last week, on its El Cobre property North Zone, in Veracruz. This week release includes a 150.9 m interval at 0.55 g/t Au and 0.22% Cu (including 62 m @ 0.86 g/t Au, 0.33% Cu), which adds to the previous release of 163.5m @ 0.68 g/t Au and 0.29% Cu. The deeper interval released ends at 542.7 m, but porphyry style alteration continues to the end of the hole, currently at ~890 m depth and advancing.
  • Sierra Metals Inc. provided an exploration update on its Bolivar and Cusi properties in Chihuahua. Bolivar is currently producing at 3,000 tpd, and has four mineralized zones: El Gallo, Bolivar NW, West Bolivar and La Sidra Vein. Mineralization is hosted in breccias, replacement deposits, skarns and an epithermal vein. Cusi is producing at a 600 tpd rate, and reports four key brownfield areas: San Nicolas Vein, San Ignacio Vein, Moctezuma Vein and the San Antonio Vein. The veins are epithermal, galena, sphalerite and chalcopyrite bearing (intermediate sulfidation), can be up to 1,300 m in length and up to 3 m in thickness.
  • Excellon Resources Inc. has initiated a 25,000 m drilling campaign at its Platosa mine in Durango, with focus in targets near mine infrastructure, near-surface manto exploration and carbonate replacement deposits. The Platosa Mine exploits a series of very high-grade, closely-spaced, CRD silver, lead, zinc manto deposits. Work is underway on compilation and reinterpretation of a large portion of the company’s geophysical data, particularly the gravity, airborne magnetics and ZTEM airborne survey previously completed.
  • Minera Alamos Inc. staked 5,200 has surrounding its La Fortuna property in Durango. The ground had come recently open for staking, and the company took advantage of the opportunity to get the ground, increasing its land holdings to 6,200 has. Besides the Main Zone, the company now has the Los Cajones zone, the Ramada zone and the PN zone, which host gold mineralization in structures that are up to 1,500 m in length and have assays as high as 10.1 g/t Au and up to 400 g/t Ag.

ON MINING

  • Sierra Metals Inc. reported financial results for the second quarter 2016, with 52.2 K tonnes mined @ 197 g/t Ag, 1.55% Pb and 2.61 % Zn and 0.25 g/t Au at the Cusi mine in Chihuahua, producing also the first zinc concentrate. Mine development at Bolivar, Chihuahua totaled 2,733 m, and 2,402 m at Cusi. Cusi’s cash cost per AgEq ounce was $10.63 and AISC per AgEq ounce was $18.49. At Bolivar, cash cost per CuEq pound was $1.25 and AISC per CuEq pound was $2.41. Cash and cash equivalents stood at $20.6 M, restricted cash of $4.7 M, and working capital of $7.9 M.
  • Mag Silver Corp. presented its financial results for the second quarter 2016, with working capital of $141.29 M, including cash and term deposits of $140.85 M. The company expended cash to fund advances on its Juanicipio´s property JV with Fresnillo PLC , which combined with MAG’s Juanicipio expenditures totaled $2.1 and $5.1 M.
  • Mexus Gold US. has completed the installation of liners on the leach pad at its Santa Elena mine in Sonora.
  • Avino Silver & Gold Mines Ltd. presented the financial results for 2016 second quarter, period in which the Avino mine was commissioned, milling 131.6 K tonnes to produce 380.6 K Oz Ag, 1.5 K Oz Au and 1.05 M pounds Cu, at cash cost US$9.89 per AgEq ounce and all-in sustaining cost of US$11.27 per AgEq ounce. Cash and cash equivalents stood at $10.7 M at the end of the quarter (Avino and San Gonzalo mines, Durango).
  • Cyprium Mining Corp. announced it has begun mining mineralized back fill material from the Santo Domingo ore shoot at its El Potosi mine in the Santa Eulalia district in Chihuahua, and is awaiting the explosives permit to begin blasting. A technical report was submitted to SEDAR.
  •  Mexico. Produced 786 K tons of zinc in 2015, of which 176 K tons were produced by Goldcorp’s Peñasquito mine in Zacatecas, while Peñoles owned Velardeña (Durango) produced 80 K tonnes, Francisco I Madero (Zacatecas) 42 K tonnes, Bismark (Chihuahua) 41 K tonnes, Tizapa (Mexico State) 41 K tonnes. Grupo Mexico’s Santa Barbara (Chihuahua) produced 32 K tonnes, Frisco’s Asientos (Aguascalientes) 30 K tonnes, Grupo Mexico’s Charcas (San Luis Potosi) 26 K tonnes, Carrizal Mining’s Zimapan (Hidalgo) 24 k tonnes and Frisco’s San Francisco del Oro (Chihuahua) 22 k tonnes.
  • Goldgroup Mining Inc. mined 174.8 K tonnes of ore @ 1.34 g/t Au at its Cerro Prieto mine in Sonora during the second quarter 2016, moved 1.17 M tonnes of waste, placed 196 K tonnes of ore at the leach pad @ 1.26 g/t to produce 4,270 Oz Au during the quarter, at a recovery rate of 58%, and all-in cash cost of $1,182. The company aims to reduce the all-in cost to $900 per gold ounce for the year.

ON FINANCING

  • Candente Gold Corp. closed its previously announced private non-brokered financing, for total gross proceeds of $500 K (El Oro, Mexico State).
  • NSX Silver Inc. closed a non-brokered private placement to raise $300 K (had Oso Blanco, Sonora).

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, prospector Miguel Ayala in the Moreno workings, Tenoriba project, San Juan Nepomuceno, Chihuahuhua.

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