Potassic-altered hydrothermal alteration

By Miguel A Heredia

During the 33^th week of the year (August 12^th to August 18^th 2024), at least 25 press releases were announced by companies working in Mexico, with ten communicating production and financial results, six disclosing deals and corporate issues, four reporting resources and development of their properties, three announcing financing rounds, one informing on exploration results, and one commenting on Mexican issues.   ON MEXICO ISSUES, Kootenay Silver Tiger, and Silver Storm reported the best drilling intercepts in Mexico on the third week of August, 2024. ON EXPLORATION, In Chihuahua, Kootenay released the latest results from drilling at its Columba project.  ON MINING, AvinoSilver & Gold presented its consolidated financial results for Q2, 2024 (Avino and La Preciosa mines, Durango). Endeavour Silver reported the trunnion on the primary ball mill at the Guanacevi mill in Durango has failed and could take up to 12 weeks to be repaired. Santacruz reported financial and operating results for Q2, 2024 (Zimapan mine, Hidalgo). Orla announced Q2, 2024 results for its Camino Rojo mine in Zacatecas.  Gold Royalty reported Q2, 2024 results (Cozamin mine, Zacatecas). Golden Minerals presented Q2, 2024 financial results (Velardeña property, Durango). Discovery Silver reported Q2, 2024 financial results (Cordero project, Chihuahua). Osisko announced that its San Antonio project in Sonora remains in care and maintenance, with no production anticipated. Elemental Altus announced that it will release its Q2, 2024 results on August 19, 2024 (Mercedes mine, Sonora). Prime reported consolidated financial statement for the six months ended June 30, 2024 (Los Reyes project, Sinaloa).  ON FINANCING, Americas Gold and Silver signed a credit and off-take agreement with Trafigura to develop the 120 Zone and El Cajon Ag-Cu project (EC120) at its Cosala mine operations in Sinaloa. Southern Silver closed the second tranche of its previously announced non-brokered private placement for gross proceeds of $1,300,350 (Cerro Las Minitas, Durango). Prismo entered into a debt settlement agreement with a creditor of the company for the amount of $30,600 (Palos Verdes, Sinaloa). ON RESOURCES AND DEVELOPMENT, Tocvan and its JV partner Colibri Resource provided an update from its Pilar project in Sonora. Silver Tiger reported results from its Pre-Feasibility Study drilling program at its El Tigre project in Sonora. Silver Storm released drill results from its phase 2 diamond drilling program at its Parrilla mine in Durango.  ON DEALS AND CORPORATE ISSUES, GR Silver granted a total of 600K stock options to eligible persons in accordance with the Omnibus Long-Term Incentive Plan (Plomosas project, Sinaloa). Impact Silver appointed a new member to its Board of Directors (Zacualpan Mining District, Mexico).  Luca mining granted an aggregate of 4,508,833 incentive stock options, and 800,000 restricted share units to certain officers, and directors, and announced that it reached an agreement with Empress Royalty Corp., (Tahuehueto mine, Durango). Silver Storm provided a bi-weekly update on the status of its management cease trade order issued on July 30, 2024 by the British Columbia Securities Commission (La Parrilla mine, Durango).  Goldgroup has entered into an agreement to acquire a loan facility from a group of creditors, which will allow the company to take full ownership of Minera Apolo, S.A. de C.V.  Candelaria received a notice from Goldgroup regarding events of default under the medium-term loan facility dated June 24, 2020 (Pinos project, Zacatecas).  ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

• Kootenay Silver Inc., Silver Tiger Metals Inc., and Silver Storm Mining Ltd., reported the best drilling intercepts in Mexico on the third week of August, 2024. Details are shown in the table below:

ON EXPLORATION

• Kootenay Silver Inc., released the latest results from drilling at its Columba project in Chihuahua. These results represents continued exploration along the “D-Vein” and includes the longest zone of consistent silver mineralization yet found on the Columba project. Drilling highlights (true widths reported) include holes CDH-24-164 with 211 g/t Ag, 0.1% Pb, and 0.4% Zn over 49.75m, including 358 g/t Ag, 0.2% Pb, and 0.5% Zn over 19m, including 531 g/t Ag, 0.1% Pb, and 0.2% Zn over 6m, including 826 g/t Ag, 0.1% Pb, and 0.2% Zn over 0.50m, and a subinterval of 318 g/t Ag, 0.2% Pbv, and 0.7% Zn over 11.02m, including 980 g/t Ag, 1.3% Pb, and 3.3% Zn over 0.20m, and 266 g/t Ag, 0.1% Pb, and 0.3% Zn over 2.75m; hole CDH-24-163 with 84 g/t Ag, 0.0% Pb, and 0.1% Zn over 12.67m, including 155 g/t Ag, 0.1% Pb, and 0.1% Zn over 4.07m; hole CDH-24-156 with 127 g/t Ag, 0.1% Pb, and 0.1% Zn over 5.6m, including 419 g/t Ag, 0.5% Pb, and 0.3% Zn over 0.39m; hole CDH-24-160 with 78 g/t Ag, 0.0% Pb, and 0.2% Zn over 6.74m, plus 123 g/t Ag, 0.0% Pb, and 0.1% Zn over 0.61m, plus 162 g/t Ag, 0.2% Pb, and 1.4% Zn over 0.92m; and hole CDH-24-161 with 126 g/t Ag, 0.0% Pb, and 0.1% Zn over 2.97m, including 287 g/t Ag, 0.0% Pb, and 0.3% Zn over 0.50m, plus 81 g/t Ag, 0.0% Pb, and 0.1% Zn over 7.60m, including 221 g/t Ag, 0.0% Pb, and 0.2% Zn over 0.50m, plus 337 g/t Ag, 0.1% Pb, and 0.3% Zn over 2.07m, including 1,595 g/t Ag, 0.7% Pb, and 0.6% Zn over 0.33m. “The ongoing 2024 program comprises 5,153m in 17 holes and has more than doubled the known strike length of D Vein, one of several high priority targets at Columba boasting some of the most striking results on the project to date. The current program is part of a fully funded follow up program of 20,000m, aimed to delineate a maiden resource expected in late 2024”.

ON MINING

• Avino Silver & Gold Mines Ltd., presented its consolidated financial results for Q2, 2024. The company milled 140,934 tonnes to produce 292.9K Oz Ag, 1,514 Oz Au, and 1.3M Lb Cu (616.6K Oz AgEq). It sold 537K Oz AgEq at cash and AISC of $16.29 and $22.74 per Oz AgEq. Avino also reported revenues of $14.8M; gross profit (mine operating income) of $4.7M, $5.9M net of non-cash costs of sales; net income of $1.2M, or $0.01 per share; adjusted earnings of $4.3M, or $0.03 per share; and EBIDTA of $3.4M (Avino and La Preciosa mines, Durango).
• Endeavour Silver Corp., reported the trunnion on the primary ball mill at the Guanacevi mill in Durango has failed and could take up to 12 weeks to be repaired. “As a result, processing of material at the Guanacevi mill has been suspended. Management is assessing several alternatives including operating at a significantly reduced capacity with minor conveyor modification using smaller regrind mills until the primary ball mill is operational”.
• Santacruz Silver Mining Ltd., reported financial and operating results for Q2, 2024 for its Zimapan mine in Hidalgo.  The company milled 209,735 tonnes with grades of 80 g/t Ag, 2.5% Zn, 0.7% Pb, and 0.3% Cu with metallurgical recoveries of 76%, 80%, 86%, and 45% respectively, to produce 409.3K Oz Ag, 9.2M Lb Zn, 2.94M Lb Pb, and 636.2K Lb Cu (1.08M Oz AgEq). Santacruz reported that it sold 857.7K Oz AgEq.
• Gold Royalty Corp., reported Q2, 2024 results It holds 1% NSR over portion of the Cozamin mine in Zacatecas owned by Capstone Copper Corporation. Capstone informed that Q2, 2024 production at Cozamin was 7% lower than the Q2, 2023 due to lower mill throughput driven by mine sequencing. Grades and recoveries were consistent with the same period last year.
• Orla Mining Ltd., announced Q2, 2024 results for its Camino Rojo mine in Zacatecas (all amounts expresses in US dollars). The company produced 33,206 Oz Au and sold 34,875 Oz Au at an average price of $2,332 per Oz Au. Cash and AISC were $498 and $782 per Oz Au sold respectively. It also reported revenue of $84.6M; net income of $24.3M; adjusted earnings of $23M; earnings per share of $0.08, and adjusted earnings per share of $0.07; cash flow from operating activities before changes in non-cash working capital of $53.2M; free cash flow of $44.1M; cash and cash equivalents of $154.3M; and a net cash of $76M. The company increased its full year Au production guidance to 120K-130K Oz Au from its initial guidance of 110K-120K Oz Au, and improved its AISC guidance for the full year to a range of $800-900 per Oz Au from the original guidance of $875-975 per Oz Au.
• Golden Minerals Company presented Q2, 2024 financial results (figures are in approximate US dollars). The company reported cash and cash equivalents of 1.4M; current liabilities of $4.8M; zero debt; and net loss of $2.7M or $0.19 per share (Velardeña property, Durango).
• Discovery Silver Corp., reported Q2, 2024 financial results. The company reported a net loss of $7.03M; basic and diluted per share of ($0.02); total comprehensive loss of $8.6M; cash and cash equivalents of $37.05M; total assets of $131.8M; total current liabilities of $5.8M; working capital of $35.85M; and total shareholders´ equity of $124.55M  (Cordero project, Chihuahua).
• Osisko Development Corp., announced that its San Antonio project in Sonora remains in care and maintenance, with no production anticipated while it awaits next steps from the government of Mexico with respect to the permitting process and the status of open pit mining in the country. Osisko is also conducting a strategic review of the project including exploring the potential for a financial or strategic partner in the asset or for a full or partial sale of the asset.
• Elemental Altus Royalties Corp., announced that it will release its Q2, 2024 results on August 19, 2024 (Mercedes mine, Sonora).
• Prime Mining Corp., reported consolidated financial statement for the six months ended June 30, 2024. The company reported loss and comprehensive loss of $11.9M; loss per share of $0.08; cash of $24.5M; total assets of $38.6M; current liabilities of $943K; total liabilities of $1.78M; and shareholders´ equity of $36.8M (Los Reyes project, Sinaloa).

ON FINANCING

• Americas Gold and Silver Corporation signed a credit and off-take agreement with Trafigura PTE Ltd., to develop the 120 Zone and El Cajon Ag-Cu project (EC120) at its Cosala mine operations in Sinaloa. It provides the company with a secured credit facility of up to USD $15M to complete the pre-production development of the EC120 project at its Cosala operations to begin producing high-grade silver-copper concentrate in Q3, 2025. Americas Gold and Silver expects to draw only USD $10M on the credit facility initially subject to standard closing conditions.
• Southern Silver Exploration Corp., closed the second tranche of its previously announced non-brokered private placement for gross proceeds of $1,300,350 by issuing 5,911,500 units at a price of $0.22 per unit. Gross proceeds will be used for the continued development of its Cerro Las Minitas project in Durango, and for working capital. “Specifically, the Company plans to initiate a program of resource expansion of up to 6,000m of drilling in 11 holes to test shallow targets along the north side of the Cerro between the North Felsite and Skarn Front deposits. Drilling will start in early September”.
• Prismo Metals Inc., entered into a debt settlement agreement with a creditor of the company. The company has agreed to issue to the creditor, and the creditor has agreed to accept 180,000 common shares of the company at a deemed issue price of $0.17 per share in full and final settlement of accrued and outstanding indebtedness in the amount of $30,600 (Palos Verdes project, Sinaloa).

ON RESOURCES AND DEVELOPMENT

• Tocvan Ventures Corp., and its JV partner Colibri Resource Corporation are preparing for the next phases of drilling at its Pilar project in Sonora. The upcoming core and RC drilling to define resources and build a robust geological model is expected to commence in September 2024. The plan is to drill between 1,200m-2,000m of core and 1,700m-2,500m of RC, focused on the Main Zone and adjacent trends. In addition, Tocvan is evaluating a pilot mine facility to process up to 50K tonnes of material on-site, with the objective of advancing towards production by early 2025, capitalizing on favorable market conditions for gold and silver.
• Silver Tiger Metals Inc., reported results from its Pre-Feasibility Study (PFS) drilling program at its El Tigre project in Sonora. The most significant drill intercepts were encountered in holes ET-24-617 with 0.34 g/t Au and 75 g/t Ag (1.34 g/t AuEq or 101 g/t AgEq) over 96.3m, including  0.34 g/t Au and 113 g/t Ag (1.84 g/t AuEq or 138 g/t AgEq) over 11m,  (Stockwork Zone), and including 1.96 g/t Au and 4,747 g/t Ag (65.25 g/t AuEq or 4894 g/t AgEq) over 1.2m (Keel Zone); hole ET-24-615 with 1.9 g/t Au and 122 g/t Ag (3.53 g/t AuEq or 264 g/t AgEq) over 18.4m (Stockwork Zone), plus 0.61 g/t Au and 57 g/t Ag (1.37 g/t AuEq or 102 g/t AgEq) over 4.4m, plus 0.4 g/t Au and 35 g/t Ag (0.86 g/t AuEq or 65 g/t AgEq) over 21.9m, plus 0.22 g/t Au and 18 g/t Ag (0.46 g/t AuEq or 35 g/t AgEq) over 22.2m, plus 0.29 g/t Au and 22 g/t Ag (0.58 g/t AuEq or 44 g/t AgEq) over 6m; hole ET-24-616 with 0.14 g/t Au and 128 g/t Ag (1.85 g/t AuEq or 139 g/t AgEq) over 31.9m  (Stockwork Zone), including 0.27 g/t Au and 399 g/t Ag (5.6 g/t AuEq or 420 g/t AgEq) over 9.3m, including 1.07 g/t Au and 2,698 g/t Ag (37.04 g/t AgEq or 2,778 g/t AgEq) over 1.3m; and hole ET-24-619 with 0.39 g/t Au and 51 g/t Ag (1.06 g/t AuEq or 80 g/t AgEq) over 24.7m (Stockwork Zone), plus 0.31 g/t Au and 7 g/t Ag (0.41 g/t AuEq or 31 g/t AgEq) over 18.9m. To date, 151 holes for the PFS have been drilled at El Tigre and results are highlighting the high-grade nature of the Keel Zone while expanding near- surface mineralization footprint 700m from the Starter Pit.
• Silver Storm Mining Ltd., released drill results from 14 holes (2,327m) from its phase 2 diamond drilling program collared at the Rosarios and San Carlos Zones, within the Rosario mine at its Parrilla mine complex in Durango. Drilling highlights include holes RO-24-028 with 116 g/t Ag, 0.02 g/t Au, 3.2% Pb, 0.02% Zn, and 0.02% Cu (204 g/t AgEq) over 0.40m, plus 646 g/t Ag, 0.23 g/t Au, 4.8% Pb, 3.4% Zn, and 0.27% Cu (887 g/t AgEq) over 2.54m, including 977 g/t Ag, 0.2 g/t Au, 7.2% Pb, 4.4% Zn, and 0.37% Cu (1,306 g/t AgEq) over 1.60m; hole RO-24-032A with 86 g/t Ag, 0.01 g/t Au, 2.9% Pb, 1.1% Zn, and 0.02% Cu (197 g/t AgEq) over 1m, plus 66 g/t Ag, 0.05 g/t Au, 1.5% Pb, 1.7% Zn, and 0.12% Cu (158 g/t AgEq) over 0.5m, plus 56 g/t Ag, 0.11 g/t Au, 1.4% Pb, 4.5% Zn, and 0.01% Cu (223 g/t AgEq) over 1.0m, plus 149 g/t Ag, 0.26 g/t Au, 2.1% Pb, 2.8% Zn, and 0.08% Cu (305 g/t AgEq) over 5.60m, including 372 g/t Ag, 0.29 g/t Au, 4.3% Pb, 8% Zn, and 0.19% Cu (931 g/t AgEq) over 1.40m, including 187 g/t Ag, 0.15 g/t Au, 6.6% Pb, 4.9% Zn, and 0.2% Cu (510 g/t AgEq) over 0.5m, plus 89 g/t Ag, 0.1 g/t Au, 1.4% Pb, 1.3% Zn, and 0.16% Cu (170 g/t AgEq) over 0.4m; hole RO-24-034 with 163 g/t Ag, 0.01 g/t Au, 4% Pb, 0.2% Zn, and 0.03% Cu (278 g/t AgEq) over 0.51m, plus 138 g/t Ag, 0.01 g/t Au, 4% Pb, 1.2% Zn, and 0.08% Cu (280 g/t AgEq) over 0.53m, plus 106 g/t Ag, 0.07% Au, 3% Pb, 1.5% Zn, and 0.04% Cu (234 g/t AgEq) over 4.24m, including 183 g/t Ag, 0.06 g/t Au, 4.7% Pb, 2.4% Pb, and 0.07% Cu (350 g/t AgEq) over 1.06m, including 230 g/t Ag, 0.04 g/t Au, 6.3% Pb, 2.6% Zn, and 0.03% Cu (475 g/t AgEq) over 0.4m, including 256 g/t Ag, 0.28 g/t Au, 7.5% Pb, 5% Zn, and 0.08% Cu (617 g/t AgEq) over 0.42m, plus 83 g/t Ag, 0.02 g/t Au, 2.5% Pb, 2.9% Zn, and 0.04% Cu (232 g/t AgEq) over 2m, including 165 g/t Ag, 0.04 g/t Au, 4.9% Pb, 3.6% Zn, and 0.07% Cu (396 g/t AgEq) over 0.40m, including 180 g/t Ag, 0.02 g/t Au, 5.4% Pb, 9.8% Zn, and 0.1% Cu (592 g/t AgEq) over 0.40m, plus 373 g/t Ag, 0.05 g/t Au, 12.2% Pb, 14% Zn, and 0.26% Cu (1,085 g/t AgEq) over 0.5m; and hole RO-24-026 with 166 g/t Ag, 0.1 g/t Au, 0.2% Pb, 0.1% Zn, and 0.06% Cu (184 g/t AgEq) over 0.55m, plus 145 g/t Ag, 0.18 g/t Au, 2.2% Pb, 2.1% Zn, and 0.03% Cu (276 g/t AgEq) over 5.46m, including 314 g/t Ag, 0.38 g/t Au, 1.9% Pb, 0.9% Zn, and 0.03% Cu (421 g/t AgEq) over 1.13m, including 149 g/t Ag, 0.06 g/t Au, 3.4% Pb, 2.6% Zn, and 0.04% Cu (316 g/t AgEq) over 1.72m. These drill results are expected to have a positive impact on future Mineral Resources.

ON DEALS AND CORPORATE ISSUES

• GR Silver Mining Ltd., granted a total of 600K stock options to eligible persons in accordance with the Omnibus Long-Term Incentive Plan. The options, with a five-year term and exercisable at a price of $0.16 per common share, shall vest as to 1/3 on the date of grant and an additional 1/3 on each of August 12, 2025 and August 12, 2026. (Plomosas project, Sinaloa).
• Impact Silver Corp., appointed a new member to its Board of Directors, effective August 7, 2024  (Zacualpan Mining District, Mexico).
• Luca mining Corp., granted an aggregate of 4,508,833 incentive stock options, and 800,000 restricted share units to certain officers, and directors. The options are exercisable at a price of $0.55 and will expire five years from the date of their issuance. The company also announced that it reached an agreement with Empress Royalty Corp. to amend the metal purchase and sale agreement entered into between the company and Empress Royalty on April 14, 2021 and subsequently amended on May 1, 2023  (Tahuehueto mine, Durango).
• Silver Storm Mining Ltd., provided a bi-weekly update on the status of its management cease trade order issued on July 30, 2024 by the British Columbia Securities Commission. The company is currently finalizing its annual financial statements, which were due on July 29, 2024, but faced delays due to complexities related to the acquisition of the La Parrilla assets in Durango. Silver Storm expects to file the necessary documents by August 28, 2024, and does not anticipate further delays for subsequent filings due by August 29, 2024.
• Goldgroup Mining Inc., has entered into an agreement to acquire a loan facility from a group of creditors, which will allow the company to take full ownership of Minera Apolo, S.A. de C.V. and its Pinos Project, a fully permitted gold project in Zacatecas. The acquisition involves issuing 50M common shares, a cash payment of USD $0.5M within 18 months, and contingent payments of USD $1.5M based on certain criteria. The completion of this transaction is subject to necessary approvals, including from the TSX Venture Exchange
• Candelaria Mining Corp., announced on August 16, 2024, that it received a notice of default from Goldgroup Mining, Inc. regarding a medium-term loan facility dated June 24, 2020. The notice indicates breaches related to repayment and information declaration, allowing Goldgroup to request early termination of the loan. Candelaria has ten business days to comply with the obligations outlined in the loan agreement.

ON SOCIAL RESPONSIBILITY

• No relevant news.

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

On the picture above, veins displaying potassic-altered hydrothermal alteration in a porphyry copper project in Tamaulipas, Mexico. Photo taken by Miguel A Heredia.