The Mining and Exploration News in Mexico: Highlights on the Third Week of February, 2021

By Jorge Cirett

During the 7th week of the year (February 15th to February 21st, 2021), there were at least 42 press releases by companies working in Mexico. To note, nine companies posted exploration advances on their properties (with GoGold’s Casados discovery deemed the most significant), six presenting quarterly results, two informing on power cuts, six posting on financing or share options, nine on project development and two on corporate issues. ON MEXICO ISSUES, the Mexican mining sector is dealing with several (government induced) challenges and great opportunities. The Nuevo Leon State government intends to push its mining sector. Camimex points out the goal of the energy bill should be to promote the reduction of the electricity cost. ON EXPLORATION, in Sonora, Tarachi Gold released drilling results from the San Javier concession; Tocvan Ventures initiated the next exploration campaign at Pilar. In Chihuahua, Radius Gold released drilling results from the Amalia project; Silver Spruce is to carry a LidDar survey at Pino de Plata; Mammoth Resources released observations by independent consultants on its Tenoriba property. In Sinaloa, Prismo Metals presented drilling results on Palos Verdes; Vizsla Silver informed seven rigs are now churning at Panuco; Brigadier Gold released drilling results from its Picachos project. In Jalisco, Stroud Resources informed on the approval of its drilling permit for Santo Domingo, Hostotipaquillo. ON MINING, Starcore International, Pan American Silver, Golden Minerals, Hecla Mining, Newmont, and First Majestic released quarterly and full year 2020 reports. Excellon and Gatos Silver informed on work affected by the power cuts in the north of the country. ON FINANCING, SGold79 Mines and Vizsla Silver granted options to directors, officers and employees; Consolidated Zinc, Orogen Royalties, Van Gold Mining and Brigadier Gold informed on their financing rounds. Heliostar Metals qualified to trade on the OTCQX Best Market. ON RESOURCES AND DEVELOPMENT, Avino Silver will drill 12,000 m on the Avino property. Sonoro Gold released results from 24 holes at Cerro Caliche. VanGold released positive results from the PEA on El Cubo and El Pinguico in Zacatecas. McEwen Mining filed the FS on the Fenix project. GoGold Resources made a discovery at Los Ricos North. Coeur Mining released the 2020 resource estimate for Palmarejo. Capitan Mining released drilling results from the Peñoles project. Golden Tag released results from drilling at San Diego, Velardeña. GR Silver Mining reported drilling results from Plomosas.  ON DEALS AND CORPORATE ISSUES, Azure Minerals is divesting its Mexican portfolio. Premier Gold shareholders had to vote in February 19 on the arrangement with Equinox Gold. ON SOCIAL RESPONSIBILITY, Minera Media Luna is to make a large investment during the next three years at the Media Luna project in Guerrero, with a significant impact in the communities of the area.

ON MEXICO ISSUES

  • The Mexican Mining Sector is dealing with several challenges and great opportunities, according to mining companies executives. The outright denial to grant mining concessions, the lack of a medium term regulatory view, security issues, the blockage by SEMARNAT of several projects, the lack of clarity and rules and lagging paperwork have to be weighed against the great mineral potential of the country, and its qualified workforce.  
  • The Nuevo Leon State government seeks to foster the mining activity on the southern part of the state. Nuevo Leon has significant deposits of barite, clays, limestone, dolostone, gypsum, phosphorite and talc, among other minerals.
  • Camimex (Cámara Minera de México) pointed out that the goal of an energy bill should be to promote the reduction of the electricity cost, not to favor any given company. With the introduction of the auto supply figure a few years ago mining companies saw the electricity cost go down from US$0.12-$0.13 Kw/hr to US$0.065 Kw/hr, while those that rely on the government supplied electricity pay US$0.08 and $0.09 Kw/hr. Miners in Perú and Chile pay US$0.06 Kw/hr and those in USA and Canada US$0.04 Kw/hr and US$0.02 Kw/hr respectively.
  • Newmont’s Peñasquito mine in Zacatecas produced 520 K ounces of gold and 934 K gold equivalent ounces in 2020. Production for 2021 is estimated at 660 K ounces of gold and 1.12 M gold equivalent ounces.

ON EXPLORATION

  • Radius Gold Inc. reported results from its phase four drilling program operated by Pan American Silver Corp. at its Amalia project in Chihuahua. Highlighted true width results comprise 6.5 m @ 0.59 gpt Au, 151 gpt Ag; 0.60 m @ 1.48 gpt Au, 475 gpt Ag; 5.0 m @ 1.73 gpt Au, 70 gpt Ag; 5.5 m @ 0.93 gpt Au, 99 gpt Ag. The high-grade San Pedro ore shoot has been defined for 410 meters down-dip.
  • Tarachi Gold Corp. released assay results from the first nine diamond holes completed on the San Javier concession, at its Tarachi project in Sonora. Highlighted core-length intervals comprise 3.0 m @ 1.58 gpt Au, 1.0 m @ 1.80 gpt Au, 1.0 m @ 6.08 gpt Au, 14.4 m @ 0.21 gpt Au; 9.0 m @ 0.61 gpt Au; 4.0 m @ 0.86 gpt Au, 2.6 m @ 1.52 gpt Au, 2.0 m @ 11.90 gpt Au (including 1.0 m @ 21.10 gpt Au); 12.0 m @ 0.63 gpt Au; 5.6 m @ 5.39 gpt Au; 1.0 m @ 15.70 gpt Au; 17.0 m @ 0.62 gpt Au; 10.6 m @ 1.6 gpt Au. “the gold mineralization is situated along open brittle structures containing over 20 percent sulphides, mainly pyrite with minor quartz veining/veinlets”.
  • Prismo Metals Inc. presented results from its initial five-hole 573 m diamond drilling program at its Palos Verdes project in Sinaloa. The program was designed to test for mineralization continuity to depth and along strike to previous reconnaissance drilling. Highlighted true width results comprise 3.2 m @ 0.13 gpt Au, 69 gpt Ag, 0.14% Cu, 0.1% Pb, 0.3% Zn; 2.5 m @ 0.24 gpt Au, 17 gpt Ag, 0.09% Cu, 0.2% Pb, 0.6% Zn; 1.3 m @ 0.73 gpt Au, 38 gpt Ag, 0.19% Cu, 0.6% Pb, 3.9% Zn; 0.9 m @ 0.03 gpt Au, 6 gpt Ag, 0.06% Cu, nil Pb, 1.4% Zn.
  • Silver Spruce Resources Inc. has contracted Eagle Mapping Ltd. to carry out a LiDar survey on the Pino de Plata property in Chihuahua. The survey is to produce an orthorectified color aerial photography and an accurate digital elevation model (DEM).
  • Vizsla Silver Corp. announced the arrival of two drill rigs to its Panuco property in Sinaloa. With these, a total of seven rigs is now operating in Panuco. The company completed over 28,000 m of drilling last year and plans to complete more than 40,000 m in the first half of 2021.
  • Brigadier Gold Ltd. provided results from its diamond drill and underground sampling programs at Picachos, Sinaloa. Drill core length highlighted true width (TW) intervals comprise 30 m @ 1.27 gpt Au, 212 gpt Ag; 3.5 m @ 1.07 gpt Au, 18 gpt Ag, 0.39% Cu, 0.15% Zn; 6.4 m @ 0.15% Zn; 10.8 m @ 0.22% Zn; 1.6 m @ 5.08 gpt Au, 35 gpt Ag, 1.90% Cu, 0.22% Zn; 183.5 m @ 0.21 gpt Au, 2 gpt Ag, 0.19% Pb, 0.37% Zn (including 0.9 m @ 10.65 gpt Au and 1.0 m @ 6.26 gpt Au, 0.54% Pb, 0.28% Zn). Highlighted trench TW intervals comprise 0.4 m @ 49.60 gpt Au, 31 gpt Ag, 0.34% Pb, 0.37% Zn; 0.8 m @ 9.70 gpt Au, 0.52% Pb, 0.32% Zn; 2.6 m @ 2.32 gpt Au, 0.14% Zn; 1.0 m @ 20.14 gpt Au, 36 gpt Ag, 0.14% Cu, 0.74% Pb, 2.51% Zn; 2.0 m @ 11.55 gpt Au, 0.12% Cu, 0.23% Pb, 0.47% Zn; 0.7 m @ 7.95 gpt Au, 43 gpt Ag, 3.26% Cu, 0.22% Pb; 0.5 m @ 109.14 gpt Au, 20 gpt Ag; 4.5 m @ 2.56 gpt Au, 4 gpt Ag, 0.19% Cu, 0.64% Pb, 0.86% Zn; 1.2 m @ 23.45 gpt Au, 6 gpt Ag, 0.19% Pb, 0.12% Zn “Of the 28 holes drilled to date, fourteen (1704 metres) were drilled to test the San Agustín Vein, 10 holes (1029 metres) tested surface exploration targets defined by trenching, 2 holes (168 metres) tested under the historic San Antonio Mine and one hole tested under the historic La Gloria Mine”. A second drill rig is being added for the commencement of the phase two drilling campaign.
  • Stroud Resources Ltd. informed the drill permit application has been approved for its Santo Domingo property in Hostotipaquillo, Jalisco. The first phase consists of 12 drill holes, and a second phase comprises 38 holes to expand the mineral resources. “Stroud’s exploration of the two main mineralized zones has drilled through many of the workings. These zones; La Rayas and Guadalupe, are a series of banded to breccia style epithermal quartz carbonate vein systems represented with miargyrite, galena, sphalerite, argentite and native silver and gold. La Rayas is 30 to 35 metres wide and Guadalupe is 15 to 30 metres wide. Both are parallel structures with greater than a 700-metre strike length and about 300 metre depth”.
  • Mammoth Resources Corp. released observations by independent consultants on its Tenoriba property in Chihuahua. According to them the mineralization in the area is of epithermal high sulfidation type and occurring near the angular unconformity between the Lower and Upper Volcanic Groups. A thorough 2-year exploration program was recommended to evaluate the main prospect areas and to address areas that have to date seen little or no work.
  • Tocvan Ventures Corp. announced the start of the next phase of exploration at El Pilar in Sonora. The planned work is to include mapping and sampling of key target areas across the project. The property is interpreted as a structurally controlled low-sulfidation epithermal system in andesitic and rhyolitic volcanic rocks.

ON MINING

  • Excellon Resources Inc. informed it is looking for alternative energy sources for its Platosa mine in Durango. The energy utilised by the company is generated with natural gas, and it has seen its price multiplied up to a hundred times due to the intense cold wave in Texas. The price increase is expected to be a short-term event.
  • Starcore International Mines Ltd. announced production results for the third quarter ended January 31, 2021. At its San Martin mine in Queretaro, 57.3 K tonnes were milled @ 1.66 gpt Au, 22.9 gpt Ag, recovering 88.8% and 57.1% respectively to produce 3,063 Oz AuEq. A 6,000 m drill program has been implemented on the northwestern and eastern parts of the mine, matched with a development program of approximately 1,200 meters to cover both zones under exploration.
  • Mexus Gold US. continues mining at its Santa Elena project in Sonora. After a slowdown due to a Covid outbreak, operations are now gaining pace.
  • Pan American Silver Corp. reported audited financial results for 2020 and the Q4 of the same year, including some figures from its Mexican operations. At La Colorada, in Zacatecas, 1.19 M Oz Ag, 800 Oz Au were produced in Q4 and 5.02 M Oz Ag, 3,500 Oz Au during the year. At Dolores, in Chihuahua, 0.76 M Oz Ag, 30,500 Oz Au were produced in Q4 and 5.02 M Oz Ag, 98,000 Oz Au during the year. Cash cost and AISC per Ag Oz for the year stood at $6.99 and $10.80 for La Colorada and ($2.48) and $6.17 for Dolores.
  • Golden Minerals Co. released financial results for 2020. During the year the Rodeo open pit in Durango was started, with ore to be processed at the Velardeña oxide mill and an expected production between 12 K and 14 K Oz Au for 2021. In Yoquivo, Chihuahua, several new veins were discovered. The lease of the Velardeña mill to Hecla was terminated in November 2020, gathering $5.6 M in revenue. The Santa María property was farmed out for $4 M, whilst the Velardeña mine and sulfide mill might restart late in 2021. Cash and cash equivalents of $9.7 M by the end of the period.
  • Hecla Mining Co. presented 2020 results, including some figures from its Mexican operations. At San Sebastian, in Durango, 1.0 M Oz Ag, 7,223 Oz Au were produced in the year (0.2 M Oz Ag, 1,159 Oz Au in Q4), with the mill operating at 474 tpd when in production. Also in San Sebastian, El Tigre and El Bronco veins that were discovered under thick soil cover in 2020, can be up to 8.5 m in width and extend for more than 1.6 km. The best true width intercepts are 2.90 m @ 1,384 gpt Ag, 6.84 gpt Au for El Bronco vein and 1.07 m @ 504 gpt Ag, 2.80 gpt Au for El Tigre vein.
  • Newmont Corp. announced Q4 and full year 2020 results, including figures from its Peñasquito operations in Zacatecas. During the quarter 201 K Oz Au and 246 K Oz AuEq were sold at an AISC of $746 and $795 per Oz respectively. For the year, 512 K Oz Au were produced and 934 K Oz AuEq at an AISC of $806 and $828 per Oz respectively. For 2021 production from Peñasquito is expected to reach 660 K Oz Au and 1,120 K Oz AuEq.
  • First Majestic Silver Corp. released its financial results for the fourth quarter and year 2020. For the year, 2.21 M tonnes were processed to produce 11.6 M Oz Ag, 20.38 M Oz AgEq at a cash cost of $5.09 per Oz Ag and an AISC of $13.92 per Oz AgE.
  • Gatos Silver Inc. reported electricity from Mexico’s national power grid supplying its Cerro Los Gatos mine in Chihuahua has been restricted, due to recent severe winter storms in Texas. The project facilities have power generators capable of sustaining the mine and field camp operations, but not the processing plant; underground mining will continue at a reduced rate and a planned shutdown for the processing plant will be completed during this temporary power restriction.

ON FINANCING

  • SGold79 Mines Ltd. granted 500 K common shares to Mr. Paul Carrelo, the newly appointed independent director (Higo Blanco, Oaxaca).
  • Consolidated Zinc Ltd. informed there are firm commitments to raise A$2.55 M in gross proceeds. The funds are required to relieve short term cashflow pressure due to operational issues at third-party processing facilities since November 2020. (Plomosas, Chihuahua).
  • Orogen Royalties Inc. cancelled the previously announced private placement (royalties in Ermitaño, Sonora).
  • VanGold Mining Corp. has further expanded its non-brokered private placement financing for gross proceeds of $16.95 M (El Cubo, Guanajuato).
  • Heliostar Metals Ltd. announced it has qualified to trade on the OTCQX Best Market, upgrading from the OTCQB Venture Market (La Lola, Sonora).
  • Vizsla Silver Corp. granted 2.14 M options to directors, officers, employees and consultants (Panuco, Sinaloa).
  • Brigadier Gold Ltd. announced a non-brokered private placement financing to raise up to $1 M.

ON RESOURCES AND DEVELOPMENT

  • Avino Silver and Gold Mines Ltd. has a 12,000 meters drilling program for its 1,104 hectares Avino property in Durango. Of these, 2,000 meters are planned on El Trompo vein, 3,000 meters on the Santiago vein, 2,500 meters on the Avino ET area and 4,500 meters on the Avino West area. Other areas that area to see investment include a dry stack tailings and improvements on circuit 4. Capital expenditures are expected to be between $6 to $8 M.
  • Vangold Mining Corp. announced positive results from the preliminary economic assessment (PEA) for the combined El Cubo and El Pinguico project in Guanajuato. There are 718.6 K tonnes @ 160 gpt Ag, 1.90 gpt Au containing 7.2 M Oz AgEq as indicated resources and 1.45 M tonnes @ 214 gpt Ag, 2.78 gpt Au containing 20.4 M Oz AgEq as inferred resources. “On an after-tax basis, the Combined Project generates a Base Case NPV (5%) of $32.9 M and an IRR of 105%, excluding El Cubo acquisition costs. Using commodity prices of $22.41/oz Ag and $1756/oz Au, which are +15% above the Base Case (yet still lower than current spot prices), the after-tax NPV(5%) is $79.0 M and the IRR is 344%”.
  • Sonoro Gold Corp. released assay results from 24 holes at its Cerro Caliche project in Sonora. Some of the highlighted core length intervals comprise 6.10 m @ 0.73 gpt Au, 18 gpt Ag; 7.62 m @ 3.09 gpt Au, 7 gpt Ag; 4.57 m @ 0.75 gpt Au, 1 gpt Ag; 6.10 m @ 0.78 gpt Au, 1 gpt Ag; 3.04 m @ 1.15 gpt Au, 1 gpt Ag; 3.05 m @ 2.32 gpt Au 2 gpt Ag. The Buena Suerte zone strike length is now 900 m long, and continuous mineralization has been confirmed along 2 kilometers of the El Rincón-Veta de Oro-Abejas vein and stockwork. A new zone, Bellotoso, has been identified, with a 2 kilometers strike length.   
  • McEwen Mining Inc. filed the feasibility study (FS) on the Fenix project, Sinaloa. The report envisions a 9.5-year mine life with after-tax IRR of 28% using $1,500/Oz gold and $17/Oz silver. Average annual production is projected at 26 K Oz Au in Phase 1 and 4.5 M Oz AgEq in Phase 2.
  • GoGold Resources Inc. released results of nine diamond drill holes from the Casados deposit in the Los Ricos North project. Limited historical mining averaged 1.5 m in width at the Casados vein, but the present drilling intercepted mineralized widths over 20 m, and a second vein, also greater than 20 m in width. Highlighted core length intervals comprise 6.4 m @ 0.19 gpt Au, 42 gpt Ag; 6.9 m @ 0.24 gpt Au, 44 gpt Ag; 56.5 m @ 0.37 gpt Au, 144 gpt Ag; 22.5 m @ 0.32 gpt Au, 97 gpt Ag (including 4.9 m @ 1.05 gpt Au, 307 gpt Ag); 27.5 m @ 0.48 gpt Au, 214 gpt Ag (including 1.3 m @ 4.67 gpt Au, 2,390 gpt Ag); 59.9 m @ 0.30 gpt Au, 84 gpt Ag; 20.3 m @ 0.51 gpt Au, 143 gpt Ag; 22.5 m @ 0.29 gpt Au, 84 gpt Ag; 53.3 m @ 0.40 gpt Au, 99 gpt Ag; 21.4 m @ 0.63 gpt Au, 136 gpt Ag; 21.3 m @ 0.34 gpt Au, 104 gpt Ag; 19.3 m @ 0.42 gpt Au, 135 gpt Ag.
  • Coeur Mining Inc. reported its 2020 mineral reserves and resources, including figures from its operations in Mexico. At Palmarejo in Chihuahua, 68,850 m were drilled in 180 holes across 11 targets. Highlighted results include 6.9 m @ 4.3 gpt Au, 151 gpt Ag; 5.2 m @ 6.4 gpt Au, 179 gpt Ag at the La Patria zone; 3.4 m @ 2.8 gpt Au, 525 gpt Ag at the Bavisa zone and 6.8 m @ 9.7 gpt Au, 640 gpt Ag; 11.2 m @ 6.1 gpt Au, 430 gpt Ag; 6.0 m @ 9.1 gpt Au, 568 gpt Ag on the Hidalgo zone.
  • Capitan Mining Inc. reported results from the last two holes of its 2020 drill campaign at Peñoles, in Durango.  Highlighted core length intercepts comprise 64 m @ 0.50 gpt Au, 7 gpt Ag (including 13.7 m @ 0.93 gpt Au, 7 gpt Ag); 21.3 m @ 0.25 gpt Au; 15.2 m @ 0.25 gpt Au; 42.7 m @ 0.17 gpt Au, 35.1 m @ 0.31 gpt Au; 35.1 m @ 0.21 gpt Au, 4 gpt Ag. The Hanging Wall zone has been confirmed and delineated for over 600 m.
  • Golden Tag Resources Ltd. released results from its ongoing 4,500 m drilling program at the San Diego property in Durango. The infill sampling of historic holes highlighted core intercept results comprising 9.36 m @ 0.03 gpt Au, 51 gpt Ag, 0.26% Pb, 0.23% Zn; 50.52 m @ 0.03 gpt Au, 25 gpt Ag, 0.24% Pb, 0.29% Zn; 175.30 m @ 0.09 gpt Au, 30 gpt Ag, 0.64% Pb, 0.55% Zn (including 48.41 m @ 0.12 gpt Au, 34 gpt Ag, 0.69% Pb, 0.80% Zn and 27.30 m @ 0.16 gpt Au, 58 gpt Ag, 1.30% Pb, 0.76% Zn) in one hole; 50.05 m @ 0.04 gpt Au, 0.43% Pb, 0.41% Zn; 9.90 m @ 0.06 gpt Au, 19 gpt Ag, 0.51% Pb, 0.37% Zn; 298 m @ 0.03 gpt Au, 30 gpt Ag, 0.67% Pb, 0.70% Zn.
  • GR Silver Mining Ltd. reported results from the current drilling program in the San Juan area of its Plomosas project in Sinaloa. Highlighted core length intercepts comprise 2.5 m @ 2,195 gpt Ag, 1.12 gpt Au, 0.3% Cu; 8.8 m @ 87 gpt Ag, 0.31 gpt Au, 0.8% Pb, 1.9% Zn; 1.1 m @ 244 gpt Ag, 0.53 gpt Au, 1.0% Pb, 2.1% Zn, 0.4% Cu; 22 m @ 70 gpt Ag, 0.15 gpt Au, 0.3% Pb, 0.3% Zn; 15.0 m @ 42 gpt Ag, 0.10 gpt Au, 0.3% Pb, 0.2% Zn; 3.4 m @ 578 gpt Ag, 0.20 gpt Au, 0.5% Pb, 1.3% Zn; 8.7 m @ 0.4% Zn; 18.3 m @ 2 gpt Ag, 0.06 gpt Au, 0.1% Pb, 0.7% Zn. These drilling results continue to define high-grade epithermal mineralization in the San Juan area and towards the nearby San Francisco vein.

ON DEALS AND CORPORATE ISSUES

  • Azure Minerals Ltd. announced it is looking to divest its Mexican properties portfolio. The company “has commenced a strategic review of its precious metals and base metals projects in Mexico, including the 100%-owned Alacrán silver-gold-copper and Oposura zinc-lead-silver projects”.
  • Premier Gold Mines Ltd. reminded its shareholders of the meeting that was to be held on February 19th to vote on the arrangement between Premier Gold and Equinox Gold Corp. regarding the acquisition of the company (Mercedes, Sonora).

ON SOCIAL RESPONSIBILITY

  • Minera Media Luna announced an investment of 12 billion pesos (12 thousand million pesos, or US$600 M) in the next three years at its Media Luna project in Guerrero. Currently, at its Limon-Guajes mine 70% of the 900 employees and 1,300 contractors are from the state. It was also stated that about 40% of its workforce is composed by women.

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

On the image below:  Quartz vein on the old Mazatlán-Durango road, geologist Guillermo Contreras for scale. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the First Week of February, 2021

By Jorge Cirett

During the 5th week of the year (February 1st to February 7th, 2021), there were at least 47 press releases by companies working in Mexico. To note, seven companies posted exploration advances on their properties, five more informed on various mining items, seven posted on financing or share options, eleven on project development and nine more on corporate issues. ON MEXICO ISSUES, mining production fell 3.1% in Mexico to November 2020, although some metals and States saw an increase. Some projects with development funding include, Las Chispas, San Antonio (both in Sonora) and Avino in Durango. ON EXPLORATION, in Baja California, Comet Resources updated on exploration at its Santa Teresa project. In Sonora, Silver Spruce is to conduct an airborne Lidar survey over its Mezquite and Jackie properties. In Chihuahua, Radius Gold conducted a geophysical survey at Plata Verde; Reyna Silver released high-grade results from trench and rock chip samples at its Batopilas project. In Zacatecas, Alien Metals is to map and sample a new area on its San Celso project. Advance Gold released drill results from Tabasqueña. ON MINING, Santacruz Silver presented quarterly and full year 2020 reports. Golden Minerals poured the first gold at Rodeo. Excellon Resources released high-grade results from exploration and expansion drilling at Platosa. McEwen Mining presented its production guidance for 2021. ON FINANCING, Silver Dollar, Sonoro Gold and Solaris Resources informed on issues related to their shares; Mammoth Resources, Plymouth Realty and Bacanora Lithium announced the closing/opening of financing rounds for $688 K, $7.4 M and $65 M respectively (and $31 M more on Bacanora Lithium shares bought by Ganfeng); Prospero Silver is consolidating shares 3 to 1. ON RESOURCES AND DEVELOPMENT, Silver Tiger Metals discovered a new mineralized zone at its El Tigre project. Gold Resource released high-grade underground drilling results from its Don David mine. Silver Dollar completed a reinterpretation of the model at La Joya while selecting new targets. Impact Silver bought a surface drill rig and an underground drill rig to use at Zacualpan. Endeavour Silver updated mineral resource estimates for Guanaceví, Bolañitos, El Compas, Terronera, El Cubo, Guadalupe y Calvo, and Parral properties. Fabled Silver released drill results from Santa María. GoGold informed on drilling results at the La Trini deposit at its Los Ricos North project. Sailfish Royalty described the Gavilanes project. Xtierra released high-grade drilling results on the Victor vein at the Bilbao project. Azucar Minerals released results from one drill hole at the Porvenir zone of the El Cobre project.  ON DEALS AND CORPORATE ISSUES, Endeavour Silver optioned The Guadalupe y Calvo project to Ridgestone Mining. Mako Mining informed on the sale of La Trinidad to GR Silver Mining. Silvercorp Metals acquired La Yesca project in Nayarit. Bacanora Lithium informed Ganfeng increased its position in Bacanora to 28.88% with the acquisition of US$31 M in shares. SilverCrest Metals released a positive FS for Las Chispas. Almaden Minerals provided a scope on the advancement of the Ixtaca project, given the refusal of development by the permitting authority. Magna Gold announced exploration activities have commenced at Margarita, a second stage of drilling is planned at La Pima and mapping and a geophysical survey are planned for Q4 at Los Muertos. Orla Mining updated on exploration activities on its 163,000 hectares land package. Plymouth Royalty is to acquire the Peñasco Quemado, Pluton and La Frazada projects from Silver One. ON SOCIAL RESPONSIBILITY, Grupo Mexico and Minera Peñasquito informed on actions that benefit the communities.

ON MEXICO ISSUES

  • Mining production in Mexico has fallen 3.1% during January to November of 2020, compared with the same period a year before. Gold, zinc and silver production grew by 3.8%, 3.4% and 1.2% respectively, but production in several other commodities fell, like iron pellets (25.9%), coking coal (21.3%), sulphur (15.1%), lead (13.7%), copper (7.3%), gypsum (5.1%).
  • Mexican projects that have received funding for development include Las Chispas in Sonora (SilverCrest, US$120 M), San Antonio in Sonora (Osisko, US$53.5 M) and Avino in Durango (Avino Silver, US$25 M).
  • Mining companies with significant exploration budgets in Mexico include First Majestic Silver, with US$27.6 M, Pan American Silver with US$42 M (not all in Mexico), Fortuna Silver with US$10 M, Alamos Gold with US$9 M, Endeavour Silver with US$8.4 M, Capstone Mining with US$5.0 M.
  • The Gold production in Chihuahua increased 15% in 2020. In November of last year 1,713 kilograms of gold were extracted, only behind Sonora (3,120 Kg) and Guerrero (1,998 kg).

ON EXPLORATION

  • Vizsla Resources Corp. provided results from eight new holes at the Napoleon prospect of the Panuco project in Sinaloa. Highlighted true width results comprise 86 gpt Ag, 18.45 gpt Au, 1.3% Pb, 3.4% Zn (1,909 gpt AgEq), including 0.43 m @ 307 gpt Ag, 101.0 gpt Au, 2.9% Pb, 10.5% Zn (10,019 gpt AgEq); 6.0 m @ 63 gpt Ag, 1.54 gpt Au, 0.2% Pb, 1.2% Zn (237 gpt AgEq), including 1.45 m @ 216 gpt Ag, 5.80 gpt Au, 0.3% Pb, 3.9% Zn.
  • Advance Gold Corp. released information on drilling at its Tabasqueña project in Zacatecas. Highlighted core length intervals comprise 0.40 m @ 0.04 gpt Au, 41 gpt Ag, 2.0% Pb, 2.9% Zn and 0.20 m @ 0.79 gpt Au, 32 gpt Ag, 2.5% Pb, 3.8% Zn.
  • Comet Resources Ltd. provided an update on the Santa Teresa project in Baja California. Comprehensive mapping of historical drill collars, shafts and artisanal workings was conducted, with mapping identifying numerous narrow vein structures at surface. A strong association between pyrrhotite and gold has been noted.
  • Radius Gold Inc. published the results of recent geophysical surveys at its Plata Verde project in Chihuahua. “New IP/Resistivity sections show significant structural zones extending to depth directly below the known large scale historic silver mines”. Radius is now targeting extensions and repetitions of the shallow dipping breccias, stockworks and disseminations within the historic mines, as well as the sub-vertical feeder zones interpreted below.
  • Alien Metals Ltd. informed mapping and sampling is to take place at the Nueva Andromeda claim, adjacent to its San Celso project in Zacatecas. The environmental drilling permit is being awaited.
  • Reyna Silver Corp. released high-grade results from its surface and trench sampling program at its Batopilas project in Chihuahua. Based on ASTER satellite image analysis and structural mapping, 258 trench, rock chip and soil samples were collected. Two new veins were found, one with native silver, typical of Batopilas, and the first gold rich vein in the property. High-resolution hyperspectral imagery shows distinctive alteration mineralogy that coincides with the new and the known veins with additional anomalies. Highlighted channel silver results comprise 42,306 gpt, 18.078 gpt, 6,320 gpt, 2,880 gpt, 2,060 gpt, 1,510 gpt, 989 gpt, 841 gpt, 405 gpt, 400 gpt 310 gpt and two soil samples returning 662 gpt and 305 gpt Ag. Highlighted channel sample gold results comprise 21.40 gpt, 18.35 gpt, 18.30 gpt, 16.90 gpt, 15.40 gpt, 15.20 gpt, 12.90 gpt, 12.40 gpt, 7.82 gpt, 3.77 gpt, 3.24 gpt, 2.03 gpt, 1.03 gpt, 1.02 gpt.
  • Silver Spruce Resources Inc. signed an airborne Lidar survey contract on its El Mezquite and Jackie properties in Sonora. The survey will produce a high resolution digital elevation and surface models topographic map and an orthorectified color aerial photography.

ON MINING

  • Golden Minerals Co. reported the first gold pour from its Rodeo project in Durango. The pour occurred nearly three weeks after the first loads of material were trucked from the Rodeo site to the company’s Velardeña oxide plant for processing.
  • Excellon Resources Inc. released assay results from underground drilling at its Platosa mine in Durango. Relevant exploration and expansion results include core length intervals of 4.2 m @ 741 gpt Ag, 7.5% Pb, 4.8% Zn (including 2.0 m @ 1,153 gpt Ag, 12.3% Pb, 6.1% Zn, 1.7 gpt Au); 2.4 m @ 728 gpt Ag, 21.2% Pb, 17.8% Zn. Some current definition and infill drilling comprise: 2.4 m @ 441 gpt Ag, 6.4% Pb, 10.6% Zn; 2.8 m @ 181 gpt Ag, 5.0% Pb, 6.5% Zn; 2.4 m @ 728 gpt Ag, 21.2% Pb, 17.8% Zn; 4.2 m @ 267 gpt Ag, 7.1% Pb, 14.5% Zn; 4.2 m @ 585 gpt Ag, 3.4% Pb, 3.3% Zn; 4.2 m @ 741 gpt Ag, 7.5% Pb, 4.8% Zn, 0.9 gpt Au.
  • Mexus Gols US. continues to haul and crush mineralized material to be laid on section 2 of the leach pad at its Santa Elena mine in Sonora.
  • McEwen Mining Inc. presented its production guidance for 2021, including from its Mexican operations. At El Gallo, in Sinaloa, the residual leaching operations are expected to produce between 4,500 and 5,900 Oz AuEq. The feasibility study for the Fenix Au-Ag project in Sinaloa was presented recently, with a 51% after-tax IRR, $90.8 M NPV@8% and a 2.9 years payback, with average annual production of 26 K Oz Au in phase 1 and 4.2 M Oz Ag in phase 2.
  • Santacruz Silver Mining Ltd. released production results for the Q4 and full year 2020. During the quarter, at Zimapan in Hidalgo 180 K tonnes were processed @ 76 gpt Ag, 0.62% Pb, 2.20% Zn, 0.32% Cu, recovering 67.4% Ag, to produce 297.5 K Oz Ag, 948 tonnes Pb, 2,711 tonnes Zn, 402 tonnes Cu. At Rosario in San Luis Potosí, 21.6 K tonnes were processed @ 71 gpt Ag, 0.18 gpt Au, 0.38% Pb, 1.40% Zn, recovering 87.5% Ag, to produce 43.3 K Oz Ag, 77 Oz Au, 73 tonnes Pb, 244 tonnes Zn. At Veta Grande in Zacatecas, no processing took place during the quarter. For the full year, the company produced 340.9 K Oz Ag, 77 Oz Au, 1,022 tonnes Pb, 2,954 tonnes Zn, 402 tonnes Cu (1 M Oz AgEq).

ON FINANCING

  • Silver Dollar Resources Inc. announced its common shares are now eligible for “settlement through the Depository Trust Company (“DTC”), a subsidiary of the Depository Trust & Clearing Corp. that manages the electronic clearing and settlement of publicly-traded companies in the United States” (La Joya, Durango).
  • Mammoth Resources Corp. was recently granted conditional approval by the TSX Venture Exchange to close its previously oversubscribed $688.5 K gross proceeds private placement financing (Tenoriba, Chihuahua).
  • Plymouth Realty Capital Corp. intends to undertake a non-brokered private financing for gross proceeds of $2 M. Plymouth previously closed a brokered private placement for $7.4 M in proceeds (Peñasco Quemado, Sonora).
  • Prospero Silver Corp. is proposing to consolidate its outstanding common shares on the basis of three to one. “There are currently 5,747,189 Shares issued and outstanding. Following the Consolidation, there will be approximately 1,915,729 Shares issued and outstanding, subject to treatment of fractional post-Consolidation Shares” (Pachuca Southeast, Hidalgo).
  • Sonoro Gold Corp. has granted incentive stock options to certain directors, officers and consultants of the company to purchase an aggregate of 535 K common shares. (Cerro Caliche, Sonora).
  • Solaris Resources Inc. announced that its common shares have been approved for listing on the Toronto Stock Exchange (La Verde, Michoacan).
  • Bacanora Lithium PLC made a share placement representing US$65 M in gross proceeds (Sonora Lithium, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Discovery Metals Corp. announced the expansion of the higher-grade bulk-tonnage domain at is Cordero project in Chihuahua. Results from 13 diamond drill holes were released, highlighting the next core length intervals: 131.6 m @ 48 gpt Ag, 0.09 gpt Au, 0.5% Pb, 1.1% Zn (118 gpt AgEq) including 37.1 m @ 119 gpt Ag, 0.22 gpt Au, 1.0% Pb, 1.2% Zn (223 gpt AgEq); 85.6 m @ 53 gpt Ag, 0.05 gpt Au, 1.4% Pb, 1.7% Zn (175 gpt AgEq) including 39.9 m @ 93 gpt Ag, 0.08 gpt Au, 2.4% Pb, 3.0% Zn (308 gpt AgEq); 126.1 m @ 40 gpt Ag, 0.10 gpt Au, 0.4% Pb, 1.0% Zn (103 gpt AgEq); 57.6 m @ 41 gpt Ag, 0.11 gpt Au, 0.3% Pb, 1.8% Zn (134 gpt Ag). Drilling has extended the “strike extent of the higher-grade bulk tonnage domain by approximately 300 m along strike across an estimated lateral extent of approximately 400 m”. 
  • Silver Tiger Metals Inc. informed on the discovery of a new mineralized zone on the footwall of the Sooy vein at El Tigre, Sonora. Highlighted core length results comprise 22.2 m @ 1.12 gpt Au, 177 gpt Ag, 0.23% Cu, 1.4% Pb, 2.0% Zn (382 gpt AgEq) including 11.75 m @ 2.02 gpt Au, 305 gpt Ag, 0.39% Cu, 2.3% Pb, 3.6% Zn, which include 6.95 m @ 3.34 gpt Au, 345 gpt Ag, 0.33% Cu, 2.0% Pb, 3.4% Zn. “The decision by the technical team to continue drilling 50 meters past the targeted Sooy Vein has been rewarded by the discovery of a wide zone of high grade mineralization totally unlike the quartz vein ore previously mined at El Tigre”.
  • Gold Resource Corp. released good underground drilling results from its Don David mine in Oaxaca. Highlighted core length intervals comprise 10.85 m @ 9.12 gpt Au, 179 gpt Ag, 0.58% Cu, 3.5% Pb, 7.0% Zn; 11.83 m @ 17.45 gpt Au, 99 gpt Ag, 0.78% Cu, 3.7% Pb, 6.3% Zn; 9.97 m @ 4.43 gpt Au, 88 gpt Ag, 0.35% Cu, 0.8% Pb, 3.2% Zn; 5.87 m @ 1.51 gpt Au, 871 gpt Ag, 0.15% Cu, 0.5% Pb, 1.0% Zn; 3.85 m @ 1.66 gpt Au, 1,046 gpt Ag, 0.14% Cu, 0.3% Pb, 0.4% Zn; 7.06 m @ 0.71 gpt Au, 286 gpt Ag; 9.20 m @ 0.47 gpt Au, 283 gpt Ag.
  • Silver Dollar Resources Inc. completed the compilation and reinterpretation of historical exploration data on the La Joya project in Durango. Additional targets have been defined by similarities in skarn mineralization to La Colorada recent discovery in nearby Zacatecas, and a study in fault kinematics, geophysical interpretation and the elaboration of a 3D geological and mineralization model.
  • Impact Silver Corp. purchased two core drill rigs to accelerate exploration on its Zacualpan property in Estado de Mexico. The company has started a 10,000 meters drill program utilizing a used underground rig already in its possession, a new surface rig and a new underground rig. Multiple targets on both extensions of current mining areas are to be tested, as well as new exploration targets on the San Ramon, Guadalupe, Mina Grande, Cuchara, Manto America and Alacran areas.
  • Endeavour Silver Corp. updated mineral reserve and resources estimates for its properties. Mineral reserves stand at 48.6 M Oz Ag, 472 K Oz Au (86.3 M Oz AgEq), measured and indicated resources at 25.9 M Oz Ag, 222.5 K Oz Au (43.7 M Oz AgEq) and inferred resources at 64.4 M Oz Ag, 283.8 K Oz Au, (87.1 M Oz AgEq).
  • Fabled Silver Gold Corp. released results from the second drill hole of the 8,000 meters campaign at its Santa María project in Chihuahua. Highlighted core length intercepts comprise 6.0 m @ 0.54 gpt Au, 324 gpt Ag including 3.30 m @ 0.90 gpt Au, 561 gpt Ag which includes 1.10 m @ 0.74 gpt Au, 822 gpt Ag and 1.10 m @ 1.06 gpt Au, 621 gpt Ag.
  • GoGold Resources Inc. announced results of drilling at La Trini in Los Ricos North property. Highlighted core length intercepts comprise 11.4 m @ 97 gpt Ag, 0.05 gpt Au, including 0.8 m @ 1,214 gpt Ag, 0.25 gpt Au; 8.5 m @ 197 gpt Ag, 0.08 gpt Au, including 2.3 m @ 506 gpt Ag, 0.08 gpt Au; 23.5 m @ 64 gpt Ag, 0.81 gpt Au, including 2.8 m @ 283 gpt Ag, 3.30 gpt Au. To date, the results of 96 drill holes at La Trini have been released.
  • Sailfish Royalty Corp. updated on the Gavilanes project in Durango. The 13,594 hectares low-sulfidation epithermal project is 25 km east from First Majestic’s San Dimas property. Historic indicated resources comprise 953 K tonnes @ 165 gpt Ag, 0.09 gpt Au, 0.06% Cu, 0.42% Pb, 0.41% Zn (200 gpt AgEq) whereas inferred resources include 5.4 M tonnes @ 125 gpt Ag, 0.12 gpt Au, 0.4% Pb, 0.34% Zn (163 gpt AgEq).
  • Xtierra Inc. released results from drilling at the Victor vein on its Bilbao property in Zacatecas. Highlighted true-width intervals in one hole comprise 3.80 m @ 59 gpt Ag, 2.0% Pb, 1.3% Zn, 0.14% Cu; 8.98 m @ 90 gpt Ag, 3.4% Pb, 3.2% Zn, 0.20% Cu, including 2.09 m @ 175 gpt Ag, 6.1% Pb, 0.7% Zn, 0.58% Cu; 4.15 m @ 131 gpt Ag, 6.0% Pb, 8.5% Zn, 0.18% Cu;1.10 m @ 126 gpt Ag, 6.1% Pb, 3.8% Zn, 0.68% Cu. Another hole returned 1.84 m @ 101 gpt Ag, 6.2% Pb, 2.7% Zn, 0.21% Cu; 3.48 m @ 28 gpt Ag, 1.7% Pb, 0.8% Zn, 0.06% Cu.
  • Azucar Minerals Ltd. released results from one more drill hole at the Porvenir zone of the El Cobre project in Veracruz. Highlighted core length intervals comprise 65.0 m @ 0.26 gpt Au, 0.14% Cu, including 10.0 m @ 0.54 gpt Au, 0.29% Cu; a second interval of 25.5 m @ 0.52 gpt Au, 0.30% Cu. “. Drilling planned for the Porvenir Zone has been completed and future drilling on the project will be planned based on a geologic review currently underway and the receipt of outstanding assay results. In the meantime a surface field work program is planned to better define several targets prior to drill testing”.

ON DEALS AND CORPORATE ISSUES

  • Endeavour Silver Corp. has granted an option to purchase a 100% interest in its Guadalupe y Calvo project in Chihuahua to Ridgestone Mining Inc.. Under the agreement Ridgestone has to pay over four years US$1.5 M in cash and US$1.75 M in shares, plus US$0.75 M in exploration expenses for a total commitment of US$4 M. Endeavour will retain a 2% NSR, with an option by which Ridgestone could buy back the 2% NSR for US$2 M prior to commencement of commercial production.
  • Mako Mining Corp. informed a definitive agreement has been executed with GR Silver Mining Ltd. on the sale of its subsidiary Marlin Gold Mining Ltd., which owns the La Trinidad mine facilities in Sinaloa, currently being reclaimed. The deal includes nine mining concessions covering 104,094.5 hectares adjacent to GR Silver’s properties. Mako will receive US$50 K in cash, a 1% NSR and the reversal of US$9.35 M in unpaid concession taxes. The 1% NSR can be bought at any time for US$2 M.
  • Silvercorp Metals Inc. has acquired 100% interest in the La Yesca project in Nayarit. The 4,700 hectares project has previous geological mapping, stream sediment and soil surveys and 7,649 meters of drilling in 25 widely spaced holes. Highlighted trench sample results comprise 25.6 m @ 420 gpt Ag, 14.3 m @ 389 gpt Ag, 47.6 m @ 295 gpt Ag and 32.9 m @ 161 gpt Ag, all with combined Pb+Zn credits of up to 3.7%. Highlighted core length intercepts comprise 3.3 m @ 744 gpt Ag, 0.1% Pb, 1.4% Zn; 10.0 m @ 977 gpt Ag, 0.2% Pb, 0.6% Zn; 6.5 m @ 725 gpt Ag, 0.5% Pb, 1.8% Zn; 5.9 m @ 293 gpt Ag, 0.2% Pb, 1.4% Zn; 2.4 m @ 823 gpt Ag, 0.3% Pb, 4.0% Zn; 3.0 m @ 718 gpt Ag, 0.2% Pb, 3.34% Zn; 17.0 m @ 252 gpt Ag, 0.8% Pb, 2.1% Zn. Silvercorp obtained control of the project by acquiring the holding company with a cash payment of US$9.25 M in cash and a 45% interest in the managing company shares to the vendors. “A “discovery payment” of up to $30 million calculated on the basis of US$0.20 per ounce of silver resources as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”), is payable by New Infini to the Vendors subject to certain permitting considerations”.
  • Bacanora Lithium PLC. announced that its partner Ganfeng Lithium Co. Ltd. signed a joint venture agreement “in connection with its investment in SLL (“JVA”) following the exercise of its option to increase its stake in SLL from 22.5% to 50% (the “Option”). Completion of the JVA remains conditional upon certain approvals and consents from authorities in the People’s Republic of China”. On a second press release Bacanora informed Ganfeng’s intention to increase its holding in Bacanora, subscribing for gross proceeds of US$31 M. On completion of their investment, Ganfeng will have an ownership level of 28.88%. (Sonora Lithium project, Sonora).
  • SilverCrest Metals Inc. disclosed positive results from a feasibility study for the Las Chispas project in Sonora. The study envisages a 1,250 tpd operation with an initial mine life of 8.5 years, with a base case NPV(5%) of $486.3 M, IRR of 52% and a payback period of one year. An average AISC of $7.07 per Oz AgEq for seven years is among the lowest quartile AISC globally.
  • Almaden Minerals Ltd. provided an update on its intentions for advancing the Ixtaca project in Puebla. Late last year the company was informed that the initial environmental impact assessment on the project did not receive approval from the Mexican federal permitting authority, Secretaría de Medio Ambiente y Recursos Naturales (SEMERNAT).” Almaden remains convinced that the Ixtaca project can be a showcase for modern, responsible mineral development in Mexico. The Company intends to work towards submitting a revised MIA which incorporates additional data presently available to the Company as well as data to be gathered in further field studies”.
  • Magna Gold Corp. announced exploration activities have commenced on its Margarita project in Chihuahua. Magna plans to re-log 5,097 meters of HQ drill core from 35 drill holes, re-sample and sample vein and vein extensions and compile sections and long sections based on the previous drilling. “Magna has contracted topographic map work on the property, as well as the acquisition of Aster satellite images, in preparation for field mapping at Margarita. A survey crew will locate the Margarita drillhole collars to confirm existing data. Field work at Margarita is scheduled to commence in Q1, which will be used to plan a drill campaign that will commence by Q3 2021. The drill campaign will include infill, confirmation and exploration drilling and will be targeted in areas between and down dip from existing drilling”. A second, 2,000 meters phase of drilling is planned in Q3 at La Pima, in Sonora. The drilling is to focus on breccias hosted in limestone. At Los Muertos, also in Sonora, soil and rock chip sampling as well as geology mapping and an induced polarization survey are planned to commence on Q4 2021.
  • Orla Mining Ltd. updated the exploration status of its 163,000 hectares in Mexican properties. A 6,000 meters core drilling program is underway within the Camino Rojo deposit in Zacatecas, and a 5,212 RC drilling campaign was completed in the neighboring Las Miserias, San Tiburcio and Guanamero targets. Nine trenches were excavated at the Las Miserias target, for a total of 140 meters. A directional drilling programmed commenced in Q4 2020 on the down plunge extension of the sulfide zone on the Camino Rojo deposit. A 2,500 meters core drilling program on Fresnillo’s property and integration of the geological resource models with Fresnillo’s drill data (In December 2020 Orla completed a layback agreement with Fresnillo PLC that will allow Orla to expand the Camino Rojo oxide pit onto part of the adjacent Fresnillo’s mining concession. A US$4 M budget has been allocated for these exploration campaigns.
  • Plymouth Realty Capital Corp. received conditional acceptance from the TSX Venture Exchange on its qualifying transaction whereby Plymouth will acquire the Peñasco Quemado (Sonora), Pluton (Durango) and La Frazada (Nayarit) projects from Silver One Resources Inc.. Plymouth is to pay Silver One $6 M in cash and shares as follows: 1.25 M in cash and 4.375 M shares on the closing of the transaction, $750 K in cash 18 months onwards and $500 K in cash 24 months after the closing.

ON SOCIAL RESPONSIBILITY

  • Grupo Mexico’s La Caridad power plant  received the certificate “Great Place to Work”.
  • Minera Peñasquito donated medical equipment to the state government in Zacatecas.

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

On the image below:  Quartz vein from a low sulfidation epithermal system in Sinaloa. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the Third Week of January, 2021

By Jorge Cirett

During the 3rd week of the year (January 18th to January 24th, 2021), there were at least 41 press releases by companies working in Mexico. To note, six companies posted exploration advances on their properties, eight more released quarterly and full year results, six posted on financing or share options, nine on project development and four more on corporate issues, including two company name changes. ON MEXICO ISSUES, several Mexican projects saw significant investment in 2020. World exploration reduced its pace in 2020, with a total of US$8.33 B, of which 21% were spent in Latin America. ON EXPLORATION, in Sonora, Silver Spruce is starting exploration at Jackie; Heliostar is to commence exploration at La Lola, Oso Negro and Cumaro. In Chihuahua, Radius Gold reported drill results from Amalia; Kootenay Silver released results from drilling at Columba. In Sinaloa, Vizsla Resources updated drill results from Panuco; Brigadier Gold released results from drill holes at Picachos. ON MINING, Sierra Metals, Pan American Silver, Hecla Mining, Gatos Silver, Argonaut Gold, Fortuna Silver, Premier Gold and First Majestic presented quarterly and full year 2020 reports. ON FINANCING, Candente Gold and Impact Silver granted stock options. Mexican Gold closed a private placement for $1.4 M. VanGold Mining expanded its placement to $12.6 M. Mammoth Resources increased its financing round to $688.5 K. Sierra Metals made a clarification on its shares. ON RESOURCES AND DEVELOPMENT, Gatos Silver is to start exploration on its extensive land package this year. Discovery Metals intends to perform 65,000 m of drilling at its Cordero project. Osisko Development informed on the work to develop its San Antonio Gold project in Sonora. Sonoro Gold reported the remaining assays from its 2020 drilling campaign at Cerro Caliche. First Majestic updated on the development of the Ermitaño project, 4 km from its Santa Elena mine. GoGold Resources released the results of a PEA on the Los Ricos South project. Silver Tiger discovered a new high-grade zone on the Benjamin vein at El Tigre. Mexican Gold released the final assays from its 2020 drill program at Las Minas. Southern Silver Exploration released drill results from Cerro Las Minitas.  ON DEALS AND CORPORATE ISSUES, Candente Gold changed name to Xali Gold Corp.. Megastar Development changed name to Madoro Metals Corp.. Tocvan Ventures added Rodrigo Calles as Exploration and Corporate Development Manager. Minaurum Gold amended an agreement with an underlying royalty holder. ON SOCIAL RESPONSIBILITY, Fresnillo PLC, Industrias Peñoles and Minera San Xavier informed on actions that benefit the communities.

ON MEXICO ISSUES

  • Camimex (Camara minera de México) informed on several projects that are to have significant investments in 2021. Juanicipio in Zacatecas, US$440 M; Los Filos expansion in Guerrero, US$213 M; Fresnillo’s Pyrites Plant in Zacatecas, US$155 M; Camino Rojo in Zacatecas, US$134 M; Tahuehueto in Durango, US$32.2 M; Santana in Sonora, US$7.55 M. Other significant projects for the near future include Las Chispas in Sonora, with US$100 M and Buenavista Zinc in Sonora, US$413 M.  
  • The world exploration investment during 2020 reached  US$8.328 billions (US$8,328 millones), according to Cochilco. That is 10% less than the US$9.285 billion spent in 2019. Twenty five percent of that amount, US$2.05 billion, were invested in Latin America, of which 21% correspond to investment sunk in Mexico (behind Chile, with 22% and ahead of Perú, with 18%).

ON EXPLORATION

  • Silver Spruce Resources. is commencing the phase 1 of exploration at the Jackie project in Sonora. The program comprises prospecting, rock, soil and stream sediment sampling, initial geological mapping and collection of structural data.
  • Vizsla Resources Corp. provided results from ten more holes on the Napoleon prospect at the Panuco project in Sinaloa. Highlighted true-width (tw) intervals comprise 11.02 m @ 180 gpt Ag, 2.27 gpt Au, 0.44% Pb, 1.31% Zn (422 gpt AgEq), including 1.09 m @ 975 gpt Ag, 13.88 gpt Au, 1.63% Pb, 5.83% Zn (2,383 gpt AgEq); 3.54 m @ 181 gpt Ag, 3.75 gpt Au, 0.59% Pb, 1.52% Zn (569 gpt AgEq); 3.23 m @ 262 gpt Ag, 2.57 gpt Au, 1.26% Pb, 2.0% Zn (562 gpt AgEq).
  • Brigadier Gold Ltd. advanced drill and surface sampling results from its Picachos property in Sinaloa. Highlighted core length intervals comprise 3 m @ 9.49 gpt Au, 24 gpt Ag; 3 m @ 6.24 gpt Au, 79 gpt Ag; 3.5 m @ 7.03 gpt Au, 110 gpt Ag; 2.5 m @ 6.75 gpt Au, 44 gpt Ag. Surface rock chip-channel sampling returned 5 m @ 4.89 gpt Au, 67 gpt; 10 m @ 1.85 gpt Au, 4 gpt Ag; 1 m @ 0.1 gpt Au, 347 gpt Ag; 0.8 m @ 44.1 gpt Au, 47 gpt Ag; 1.2 m @ 5.25 gpt Au, 74 gpt Ag; 1.6 m @ 1.9 gpt Au, 98 gpt Ag. Brigadier states that results so far indicate a primary vein system over seven kilometers with robust mineralization.
  • Radius Gold Inc. reported results from its phase four diamond drill program at the Amalia Au-Ag, project in Chihuahua. Five drill holes have been completed in the current program, for a total of 2,035 m. A hole aimed within the high grade San Pedro shoot intercepted 23.1 m @ 6.8 gpt Au, 321 gpt Ag, with an estimated true width (tw) of 14.5 m, including 6.25 m (3.5 m tw) @ 18.34 gpt Au, 813 gpt Ag.
  • Kootenay Silver Inc. announced results from the final 17 core holes completed on its phase II drill program which totaled 9,114 m at its Columba project in Chihuahua. Highlighted core length results comprise 79 m @ 58 gpt Ag (including 10.1 m @ 152 gpt Ag and 3.1 m @ 325 gpt Ag); 3.78 m @ 170 gpt Ag; 27.75 m @ 40 gpt Ag; 94.06 m @ 40 gpt Ag (including 7.0 m @ 97 gpt Ag); 9.05 m @ 179 gpt Ag (including 5.35 m @ 290 gpt Ag); 1.58 m @ 525 gpt Ag; 70.5 m @ 112 gpt Ag (including 9.0 m @ 691 gpt Ag and 4.6 m @ 1,186 gpt Ag); 25 m @ 47 gpt Ag (including 7 m @ 126 gpt Ag and 2.45 m @ 208 gpt Ag.
  • Heliostar Metals Ltd. plans to start an exploration program of its Mexican projects in Sonora next month. Drilling at La Lola should commence on February, focusing on the 5 km long La Barra vein. Mapping and sampling will be completed at Oso Negro and Cumaro projects in February and March. Oso Negro is a large project with outcropping veins, while Cumaro is part of the Picacho district.

ON MINING

  • Sierra Metals Inc. reported production results for Q4 2020, including figures from its Mexican operations. At Bolívar, in Chihuahua, 383.6 K tonnes were processed at a rate of 4,384 tonnes per day (tpd) and a grade of 0.79% Cu, 14.5 gpt Ag, 0.25 gpt Au, recovering 88.21% Cu, 83.44% Ag, 64.41% Au, to produce 5.87 M Lb Cu, 149 K Oz Ag, 2,017 Oz Au. For the year total production of 24.54 M Lb Cu was recorded. At Cusi, in Chihuahua, 82.7 K tonnes were processed during the period at a rate of 945 tpd and a grade of 160.62 gpt Ag, 0.19 gpt Au, 0.28% Pb, recovering 80.37% Ag, 46.73% Au, 82.79% Pb, to produce 343 K Oz Ag, 234 Oz Au, 590 K Lb Pb. For the year, a total of 890 K Oz Ag, 619 Oz Au, 1.37 M Lb Pb were produced.
  • Consolidated Zinc Ltd. executed an agreement with Industrias Peñoles S.A. de C.V. “to reduce the transport costs/allowances of Plomosas concentrate delivered and sold to Penoles under an extended offtake agreement for the sale of 100% of the Plomosas zinc concentrate” (Plomosas, Chihuahua).
  • Capstone Mining Corp. is working on a technical report that is to include an updated mineral resource and a prefeasibility study to increase the vein rate recovery at its Cozamin mine in Zacatecas. “The $45 to $50 million project will commence this year and when in operation, targeted for Q1 2023, will allow for maximizing the extraction of high-grade ore. It will also improve environmental performance given 60% of our tailings will be sent underground and the remaining tailings will employ best practice dry-stack technology…. The 2021 budget for brownfield exploration is $5 million and $4 million for greenfield exploration in Mexico and Brazil”.
  • Pan American Silver Corp. released preliminary production results for the fourth quarter of 2020, including figures from its Mexican operations. At La Colorada, Zacatecas, 1.18 M Oz Ag were produced, while at Dolores, in Chihuahua, production reached 764 K Oz Ag. For 2021 the company aims to produce 7.16 – 7.44 M Oz Ag, 4.0 – 4.2 K Oz Au at La Colorada, and 2.73 – 2.97 M Oz Ag, 160.8 – 179.3 K Oz Au at Dolores, Chihuahua.
  • Hecla Mining Co. released preliminary production for 2020, including figures from its Mexican operations. At San Sebastian, Durango, “1.0 million ounces of silver and 7,223 ounces of gold were produced. For the fourth quarter, 0.2 million ounces of silver and 1,159 ounces of gold were produced. Mining was completed in the third quarter and milling completed in the fourth quarter of 2020. The mill operated at an average of 474 tpd when in production. The Company continues to explore this highly prospective land package and will evaluate further mining based on exploration results”.  
  • Gatos Silver Inc. achieved 2,324 tonnes per day operation of its Cerro Los Gatos mine in Chihuahua. By the end of 2020 mine development had reached just under 16,000 m of development. During 2020 Gatos Silver produced 4.2 M OZ Ag, 34.2 M Lb Zn, 27.4 M Lb Pb and 4,900 Oz Au, in Ag, Zn and Pb concentrates.
  • Argonaut Gold Inc. announced production results for the fourth quarter and full-year 2020, including figures from its Mexican operations. At El Castillo, in Durango, 12,568 Oz AuEq were produced in the quarter, 46,182 Oz AuEq in the year. At San Agustín, Durango, 18,622 Oz AuEq were produced in the quarter, 63,866 Oz AuEq in the year. At La Colorada, in Sonora, 11,294 Oz AuEq were produced in the last quarter, and 47,064 in the year.
  • Fortuna Silver Mines Inc. reported production results for the fourth quarter and full year 2020, including figures from its Mexican operations. During the quarter in San José, Oaxaca, 272.1 K tonnes were milled at a rate of 3,024 tpd and a grade of 206 gpt Ag, 1.26 gpt Au, recovering 91.42% Ag, 91.27% Au, to produce 1.65 M Oz Ag, 10,095 Oz Au. For the full year 934.4 K tonnes were milled at a rate of 2,647 tpd and a grade of 224 gpt Ag, 1.38 gpt Au, recovering 91.52% Ag, 91.34% Au, to produce 6.16 M Oz Ag, 37,805 Oz Au.
  • Premier Gold Mines Ltd. released fourth quarter and full year 2020 results, including figures from its operations in Mexico. At Mercedes, Sonora. During the last quarter 11,185 Oz Au, 65,735 Oz Ag were produced, which added up to the production of 34,955 Oz Au, 167,917 Oz Ag in the year.
  • First Majestic Silver Corp. announced Q4 and full year 2020 results from its Mexican mines. For the Full year, San Dimas, in Durango, produced 6.4 M Oz Ag, 71,598 Oz Au, or 12.67 M Oz AgEq; Santa Elena, in Sonora, produced 1.7 M Oz Ag, 28,242 Oz Au, or 4.18 M Oz Ag Eq; La Encantada, in Coahuila, produced 3.50 M Oz Ag, 241 Oz Au, or 3.53 M Oz Ag. Last quarter production results can be seen in the table below.
  • Mexus Gold US. informed it is moving 600 tonnes per day to the crushing plant at its San Elena mine in Sonora (Not to mistake for First Majestic’s Santa Elena mine, also in Sonora). Leaching continues to produce about 3 Oz per day, which is expected to double by February.

ON FINANCING

  • Candente Gold Corp. announced the granting of 3.2 M stock options to directors, senior officers, employees and consultants of the company (El Oro, Estado de Mexico).
  • Mexican Gold Mining Corp. closed its non-brokered private placement for gross proceeds of $1.4 M. The press release presented a lengthy explanation of a “related party transaction” involving Palisades Goldcorp Ltd.  (Las Minas, Veracruz).
  • VanGold Mining Corp. expanded the size of its non-brokered private placement financing previously announced, to $12.6 M in gross proceeds (El Pinguico, Guanajuato).
  • Impact Silver Corp. granted 2.11 M stock options to directors, officers and employees (Real de Zacualpan, Estado de Mexico).
  • Mammoth Resources Corp. is increasing the amount of the recently announced private placement, for total gross proceeds of $688.5 (Tenoriba, Chihuahua).
  • Sierra Metals Inc. “refers to the announcement earlier today by Arias Resource Capital Fund L.P. (“ARCF I”) regarding its distribution of an aggregate of 52,721,964 common shares of the Company from ARCF I to underlying limited partners (the “Distribution”) which was made in connection with the winding-up and dissolution of ARCF I. In view of the ongoing strategic review process announced by Sierra on January 8, 2021, the Company confirms that the strategic review process continues to have the full support of its Board of Directors, management team, Arias Resource Capital Fund II L.P. (now the Company’s largest shareholder) and Arias Resource Capital Fund II (Mexico) L.P” (Cusi and Bolivar mines, Chihuahua).

ON RESOURCES AND DEVELOPMENT

  • Gatos Silver Inc. commenced in December 2020 a 27,000 meter exploration program at its Cerro Los Gatos property in Chihuahua, to convert 3.2 M tonnes of inferred resources to measured and indicated categories, and to discover resources to the SE and NW of the deposit. Gatos Silver “intends to reactivate Los Gatos District exploration in early 2021, starting with the Esther resource located four kilometers from CLG. During the first quarter of 2021, Gatos Silver will begin a 5,400-meter exploration program on its wholly-owned Santa Valeria project”.
  • Discovery Metals Corp. intends to perform 65,000 meters of diamond drilling in 2021 at its Cordero project in Chihuahua. The aim is to produce a PEA with a resource update of the bulk tonnage mineralization and complete the initial testing of the high-grade veins with 20,0000 meters, and drill 46,000 meters more for bulk-tonnage mineralization resource upgrade and expansion, resource definition of the high-grade veins and initial scout drilling on the property.
  • Osisko Development Corp. informed its San Antonio Gold project in Sonora has an initial resource estimate of 27.6 M tonnes grading 1.18 g/t Au for 1 M Oz Au in the inferred category. Osisko is currently targeting development of a scenario for initial annual production of 50 K to 70 K Oz with additional near-term potential from reprocessing the 1.3 M tonnes stockpile located on site. The company also entered into an agreement to purchase a semiportable crushing plant for the project with capacity of 15 K tpd, with a jaw crusher, cone crushers and the related screening and material handling equipment. “The equipment is in good condition and currently stored in Nevada, USA and will be transported to the project in the next quarter”.
  • Sonoro Gold Corp. reported the remaining assays from it 2020 drilling campaign at Cerro Caliche, Sonora. “The 2021 drilling program is currently underway with approximately 50 additional RC and core holes expected to be completed by the end of the first quarter”. Core length intercepts comprise 8.4 m @ 0.72 gpt Au; 7.2 m @ 0.60 gpt Au; 6.0 m @ 0.88 gpt Au at El Colorado zone, 3.9 m @ 0.36 gpt Au and 3.9 m @ 0.23 gpt Au in one hole at the Guadalupe zone, 9.3 m @ 0.72 gpt Au; 15 m @ 0.50 gpt Au at the Cabeza Blanca zone, 16.25 m @ 0.74 gpt Au. “The latest assays further support the Company’s consideration of the viability for a bulk mining heap-leach development proposal with a conceptual throughput of up to 20,000 tonnes per day”.
  • First Majestic Silver Corp. updated on the Ermitaño project, located only 4 km east from its Santa Elena mine in Sonora. Approximately 72,270 m of drilling have been completed since 2016 to define the current indicated resource of 4.7 M Oz Ag, 311 K Oz Au at an average grade of 70 gpt Ag, 4.59 gpt Au, and an inferred resource of 7.0 M Oz Ag and 370 K Oz Au averaging 58 gpt Ag, 3.08 gpt Au. “In 2021, the Company has budgeted a total of $42.1 million to be invested at Ermitaño and expects to begin initial test block mining by mid-2021 to assess the geotechnical conditions, subject to delineation drilling results, and extract approximately 30,000 to 60,000 tonnes of material to be used for industrial metallurgical testing”.
  • GoGold Resources Inc. released results of its preliminary economic assessment (PEA) at Los Ricos South project in Jalisco. The report includes an after tax NPV (5% discount rate) of US$296 M, with an after tax IRR of 46% on an 11 year mine life to produce 69.6 M Oz AgEq; initial capital costs of $125 M and average LOM costs of $8.65 per Oz AgEq and all-sustaining costs of $11.35 per Oz AgEq. Approximately two thirds of the production would be from open pit mining, and one third from underground mining.
  • Silver Tiger Metals Inc. announced the discovery of a new zone of high-grade Au-Ag mineralization at its El Tigre project in Sonora. Core length intercepts comprise 5.5 m @ 726 gpt Ag, 0.08 gpt Au, including 3.0 m @ 1,303 gpt Ag,0.09 gpt Au; 0.5 m @ 625 gpt Ag, 0.12 gpt Au; 0.5 m @ 474 gpt Ag, 0.13 gpt Au. These intercepts are from the newly discovered Benjamín vein, 900 m to the north of the El Tigre historic workings.
  • Mexican Gold Mining Corp. released the final assay results from the 2020 drill program covering 10,221 m in 65 holes at its Las Minas project in Veracruz. Highlighted core length intercepts comprise 18 m @ 2.45 gpt Au, 0.6% Cu; 21 m @ 9.32 gpt Au, 0.33% Cu; 28.3 m @ 1.48 gpt Au, 0.36% Cu; 15 m @ 2.42 gpt Au, 0.22% Cu; 10 m @ 1.23 gpt Au, 0.61% Cu; 10 m @ 2.09 gpt Au, 0.96% Cu; 10 m @ 1.72 gpt Au, 0.54% Cu, 52 m @ 1.5 gpt Au, 1.1% Cu; 12 m @ 2.55 gpt Au, 1.18% Cu; 7.8 m @ 1.05 gpt Au, 0.51% Cu; 8.4 m @ 1.03 gpt Au, 0.22% Cu; 9 m @ 0.99 gpt Au, 0.94% Cu; 14 m @ 1.08 gpt Au, 0.96% Cu; 10 m @ 0.54 gpt Au, 0.63% Cu; 2 m @ 1.7 gpt Au, 2.33% Cu; 1.8 m @ 3.62 gpt Au, 4.63% Cu. Areas with highlighted intercepts include El Dorado, the West Dike Contact and the East Dike Contact.
  • Southern Silver Exploration Corp. reported “further intervals of gold-enriched oxide and sulphide mineralization in step out drilling as well as a significant downhole extension of earlier reported high-grade, silver enriched polymetallic sulphide mineralization” at the Mina La Bocona zone of its Cerro Las Minitas project in Durango. Highlighted true width intercepts comprise 26.5 m @ 0.37 gpt Au, 26 gpt Ag of shallow oxide mineralization and 6.1 m @ 162 gpt Ag, 0.57 gpt Au, 3.2% Pb, 1.3% Zn, that correlates with the deeper sulfide mineralization in one hole; 6.1 m @ 344 gpt Ag, 0.59 gpt Au, 5.7% Pb, 3.9% Zn; 1.4 m @ 520 gpt Ag, 0.34 gpt Au, 10.6% Pb, 9.8% Zn; 5.0 m @ 364 gpt Ag, 0.3 gpt Au, 7.0% Pb, 1.8% Zn. 1.4 m @ 1,070 gpt Ag, 0.09 gpt Au, 23.3% Pb, 3.2% Zn.

ON DEALS AND CORPORATE ISSUES

  • Candente Gold Corp. announced the name change to Xali Gold Corp. has taken place (El Oro, Estado de Mexico).
  • Tocvan Ventures Corp. announced Rodrigo Calles-Montijo has been appointed to the Board of Directors and management team as Exploration and Corporate Development Manager, Mexico (Pilar, Sonora).
  • Minaurum Gold Inc. “is pleased to announce that it has entered into an agreement with its underlying Royalty Holder (“RH”) on the Biricu Project (“Biricu”) located in the Guerrero Gold Belt (“GGB”), Mexico. Minaurum has been provided with both a limited time option to repurchase a portion of the NSR along with eliminating the outstanding Bankable Feasibility Study payment on Biricu in exchange for issuing 100,000 common shares to RH”. The Biricu project is on the southeastern projection of the Guerrero Gold Belt and is underlain by the same Cretaceous sedimentary rocks and Laramide intrusive rocks.
  • Megastar Development Corp. announced that its board of directors approved a name change to Madoro Metals Corp., subject to approval from the TSX Venture Exchange (Yautepec and Magadalena, Oaxaca).

ON SOCIAL RESPONSIBILITY

  • Industrias Peñoles informed on the donations, equipment provided and activities executed in the Torreon-Gomez Palacio area (La Laguna) to aid with the Coronavirus pandemic in 2020.
  • Fresnillo PLC provides 1,500 liters of diesel fuel monthly to the firefighters department in Caborca, Sonora.
  • Minera San Xavier has commenced the remediation of historic mining liabilities in Cerro San Pedro, San Luis Potosí. The liabilities were generated by mining by Asarco between 1930 and 1950. Since 2016 140 K tonnes of material have been moved from Patio Victoria to the installations of the mine, which is now closed.
  • Fresnillo PLC signed an agreement with the Fresnillo municipality to provide resources to aid the communities of Mexico Nuevo and Carrillo, in Zacatecas.
  • Peñoles informed its Museo de Los Metales (Metals Museum) continues with an intense program of online activities.

Content like what you have just read can be seen at https://gambusinoprospector.com/ and at LinkedIn’s Mexico Mineral Exploration Group. On the image below Quartz vein stockwork on andesite from a project in Sinaloa. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the First Week of January, 2021

By Jorge Cirett

During the 1st week of the year (January 4th to January 10th, 2020), at least 27 press releases were announced by companies working in Mexico. To note, four companies posted exploration advances on their properties, and six more posted news on resources and development. Sierra Metals Corp’s Cusi and Bolivar mines are up for grabs. ON MEXICO ISSUES, a reduction of mineral production is expected for 2020 due to the effects of the Covid-19 pandemic. Camimex pointed on the lack of clarity on the distribution of the mining royalties. At least six companies plan to start mining operations in this year. ON EXPLORATION, in Sonora, Aztec Minerals updated its exploration status at Cervantes; Mojave Gold updated on exploration at its Sonora Gold project, where at least two structures tens of meters in width run for kilometers; Canuc Resources is using results from a magnetic survey for targeting. In Chihuahua, Mammoth Resources has received the permit for drilling at Tenoriba.  ON MINING, Endeavour Silver, Aura Minerals and Torex Gold presented Q4 2020 production results. Mexus Gold US continues to stack ore at its Santa Elena mine. Sierra Metals presented a PEA that doubles the processing capacity at its Cusi mine. ON FINANCING, Ridgestone Mining increased its private placement to $2.32 M. SilverCrest Metals entered into a credit agreement for US$76.5 M. Fabled Silver and Silver Wolf Exploration granted stock options. Silver Dollar Resources made a clarification requested by the OTC Market. ON RESOURCES AND DEVELOPMENT, GR Silver Mining reported good drilling results at the Plomosas mine, in the Plomosas project, Sinaloa. Sonoro Gold reported drilling results from Cerro Caliche, Sonora. Discovery Metals released drilling results from two vein trends at Cordero, Chihuahua. Prime Mining updated on exploration at Los Reyes, Sinaloa. Fabled Silver Gold informed on surface sampling at Santa María, Chihuahua. GoGold released results from drilling at El Favor, on its Los Ricos North project, Jalisco. ON DEALS AND CORPORATE ISSUES, Argonaut Gold and AP Mining have amended the agreement for the previously announced sale of the Ana Paula project to AP Mining. Minaurum Gold entered into an option agreement with Fortuna Silver on the Taviche property in Oaxaca, agreement by which Fortuna can gain up to 80% interest on the project. Sierra Metals is evaluating the sale of its assets, a merger or business combination. ON SOCIAL RESPONSIBILITY, Fresnillo, the Chihuahua Mining Cluster and Grupo Mexico informed on actions that benefit society.

ON MEXICO ISSUES

  • Camimex (Camara minera de México) sees the mining production to decrease in 2020 due to the pandemic. The decrease is expected to reach 10% for gold, 6 to 6.3% for silver and lead, 3% for copper and 25% for iron.
  • Camimex pointed on the lack of clarity on the distribution of the mining royalties. According to the previous rules the resources funded infrastructure on communities across mining regions. After de federal government changed the rules, it is not clear now how these resources are distributed. Mining companies paid US$196 M (3,990 million pesos) in royalties in 2019.
  • Companies aspiring to start new mines in 2021 include: Mag Silver (Juanicipio, Zacatecas), Orla Mining (Camino Rojo, Zacatecas), Minera Alamos (Santa, Sonora), Golden Minerals (Rodeo, Durango), VanGold Mining (Pinguico and El Cubo, Guanajuato), Sonora Gold (Cerro Caliche, Sonora) and Candelaria Mining (Pinos, Zacatecas).

ON EXPLORATION

  • Aztec Minerals Corp. informed that during 2020 formed a 65/35 joint venture with Kootenay Silver on the Cervantes project, Sonora. Also during the year an additional IP-resistivity survey was performed to define new targets; geological mapping, geochemical sampling and geophysical surveying have identified 11 targets in total, of which 7 are in preparation for drilling. Aztec intends to extend detailed geologic, structural, and alteration mapping and sampling at the Purisima West, Estrella, Jacobo, Brazil, and other targets at Cervantes, and plan and permit a phase 1 reverse circulation drilling program on the California and Purisima targets.
  • Mojave Gold Corp. updated on work done during December of 2020 at its Sonora Gold project in Sonora. A 261 sample stream sediment survey was carried out in the 6,000 hectares property, and detailed geological mapping and rock chip sampling was carried out on the Caracahui and Sonora Cooper areas, including underground mapping on the latter. The Sonora Cooper West/Las Llantas structure has been observed to be over 3 km in length, reaching widths of over 70 m. “In total, mineralized structures in the western part of the project area have been observed to extend more than 8.5 kilometers in cumulative length…. The Sonora Cooper mineralized area contains large structures often reaching over 70m in width, that were mapped in detail for over 500m along strike. Additionally, detailed underground mapping was completed over 605m length in the Sonora Cooper adit and over a 260m length of the Guadalupe adit. A total of 160 rock chip samples were collected from the underground workings”.
  • Mammoth Resources Corp. announced SEMARNAT (Mexican environmental agency) has approved the drill permit application on its Tenoriba property in Chihuahua. Mammoth is planning to start a drilling campaign before the end of the first quarter.
  • Canuc Resources Corp. received results from a drone supported magnetic survey at its San Javier project in Sonora. Three large magnetic high features (1,000 by 600 m, 800 by 600 m, 600 by 600m) were identified. “Detailed processing of the data suggests that there are stronger magnetic features within the larger target areas which may represent areas of higher-grade mineralization. Canuc is now carrying out detailed ground magnetic surveys on these targets and is scheduled to begin drilling in the next few weeks”.

ON MINING

  • Mexus Gold US. released an update of mining operations at its Santa Elena mine in Sonora (not to mistake for First Majestic’s Santa Elena mine, also in Sonora). The company is stacking material from a shear zone grading 0.9 gpt to 1.2 gpt Au.
  • Sierra Metals Inc. filed a NI 43-101 independent technical report for a doubling of output at its Cusi mine in Chihuahua. The preliminary economic assessment (PEA) highlights include an after tax Net Present Value (NPV) of US$81 M at an 8% discount rate, at a long term silver price of US$20/Oz. The project envisages increasing the production from 1,200 tonnes per day (tpd) to 2,400 tpd @ 127.2 gpt Ag, 0.12 gpt Au, 0.48% Zn, 0.34% Pb, with a 13 year mine life and recoverable 33.4 M Oz Ag.
  • Endeavour Silver Corp. reported the highest quarterly production in the last two years from its mines in Mexico. Total production in the quarter was 237.4 K tonnes mined at a rate of 2,580 tpd @ 169 gpt Ag, 1.90 gpt Au, recovering 86.8% Ag, 87% Au, to produce 1.12 M Oz Ag, 12,586 Oz Au.
  • Torex Gold Resources Inc. reported Q4 production for 2020. At its Limon-Guajes mine in Guerrero, 12,560 tpd were processed, with 1,300 tpd mined from underground and 18,360 tpd mined from open pit with a waste to ore strip ratio of 6.2, to produce 130,640 Oz Au in the quarter. In the year, 11,370 tpd were processed to produce 430,480 Oz Au.
  • Aura Minerals Inc. released preliminary production reports for the fourth quarter of 2020. In the period the Aranzazu mine in Zacatecas produced 19,073 Oz AuEq, which added up to the 65,497 Oz AuEq for the full year. During December 89.1 K tonnes were processed, and the company intends to increase processing to 100 K tonnes per month during the second half of 2021.

ON FINANCING

  • SilverCrest Metals Inc. entered into a credit agreement with an affiliate of RK Mine Finance to provide a secured project financing facility for a total of US$120 M for funding the construction at Las Chispas, Sonora. Concurrently SilverCrest has entered into a fixed price engineering, procurement and construction contract with Ausenco Engineering Canada Inc. with a lump sum turnkey price of US$76.5 M that is to include construction of a 1,250 tonne per day process plant at Las Chispas.
  • Fabled Silver Gold Corp. granted 200,000 stock options to a consultant of the company (Santa María, Chihuahua).
  • Silver Dollar Resources Inc. was requested by the OTC Markets Group Inc. to issue a statement about promotional activity concerning its common stock. OTC Markets questioned about “two promotional newsletter emails published by CrushTheStreet.com (“CTS”) and Wealth Research Group (“WRG”) discussing the emerging bull market for commodities, particularly silver, and citing the Company in both publications… The Company has been advised by OTC Markets that OTC Markets takes the position that aspects of the statements were overly promotional. The Company wishes to caution readers that these statements are speculative in nature” (La Joya, Durango).  
  • Silver Wolf Exploration Ltd. granted incentive stock options for the purchase of 1 M shares to directors, officers, consultants, and employees of the Company (Ana María and Laberinto, Durango).
  • Ridgestone Mining Inc. increased the previously announced private placement from $1.9 M to $2.32 M, for additional gross proceeds of $420 K (Rebeico, Sonora).

ON RESOURCES AND DEVELOPMENT

  • GR Silver Mining Ltd. reported good underground drilling results from the Plomosas mine area at its Plomosas project in Sinaloa. “The mineralization is represented by thick intercepts of Au-Ag-Pb-Zn-Cu mineralization hosted in a series of hydrothermal breccias”.  The highlighted results comprise 83 m @ 2.52 gpt Au, 33 gpt Ag, 0.9% Pb, 2.9% Zn, 0.3% Cu (420 gpt AgEq), including 4.0 m @ 9.35 gpt Au, 38 gpt Ag, 0.4% Pb, 10.5% Zn, 0.3% Cu (1,319 gpt AgEq) and 11.0 m @ 9.41 gpt Au, 135 gpt Ag, 5.7% Pb, 9.8% Zn, 0.5% Cu (1,596 gpt AgEq).  
  • Sonoro Gold Corp. reported favourable results from eight reverse circulation drill holes at its Cerro Caliche project in Sonora. At the Buena Suerte target, highlighted intercepts comprise 3.0 m @ 1.48 gpt Au; 7.6 m @ 1.32 gpt Au, 12.2 m @ 0.86 gpt Au; 12.2 m @ 0.69 gpt Au; 27.44 m @ 1.17 gpt Au (including 3.0 m @ 4.70 gpt Au); 12.2 m @ 0.50 gpt Au. Highlighted intercepts from the Japoneses target include 22.9 m @ 0.57 gpt Au; 10.7 m @ 0.45 gpt Au; 13.7 m @ 0.60 gpt Au; 10.7 m @ 0.40 gpt Au, 12.2 m @ 0.36 gpt Au; 4.6 m @ 0.41 gpt Au; 27.44 m @ 1.17 gpt Au; 12.2 m @ 0.50 gpt Au.
  • Discovery Metals Corp. released results from 10 diamond drill holes targeting the Parcionera and Josefina vein trends at its Cordero project in Chihuahua. Highlighted intercepts comprise 4.4 m @ 246 gpt Ag, 0.39 gpt Au, 6.5% Pb, 0.4% Zn (524 gpt AgEq); 0.5 m @ 665 gpt Ag, 0.58 gpt Au, 13.8% Pb, 13.7% Zn (1,765 gpt Ag) on the Parcionera vein trend and 3.3 m @ 196 gpt Ag, 0.17 gpt Au, 5.6% Pb, 4.9% Zn (612 gpt AgEq); 1.6 m @ 20 gpt Ag, 0.11 gpt Au, 0.3% Pb, 1.8% Zn at the Josefina vein trend.
  • Prime Mining Corp. provided a year-end update on its Los Reyes project in Sinaloa. “The ongoing work includes field mapping, trench sampling, rock alteration analysis and interpretation and re-logging of historic diamond drill core…. Re-logging of several existing diamond drill core holes also identified that adularia, a crystalline mineral, containing high-grade gold and silver locally with visible gold, is associated with nearby altered rock types. The adularia appears to be vertically zoned”. The project is a district scale low sulfidation epithermal mineralizing system on which more than US$20 million have been spent over 25 years.
  • Fabled Silver Gold Corp. completed the sampling program to evaluate the IP geophysical anomalies on the Santa María property in Chihuahua. The sampling returned silver anomalous results over two geophysical anomalies. Eleven first priority anomalies have been delineated, generally in an east-west direction.
  • GoGold Resources Inc. released drilling results from El Favor deposit at its Los Ricos North property in Jalisco. Highlighted core length results comprise 30.2 m @ 0.18 gpt Au, 63 gpt Ag (1.03 gpt AuEq), including 8.6 m @ 0.28 gpt Au, 146 gpt Ag (2.23 gpt AuEq); 5.6 m @ 0.55 gpt Au, 287 gpt Ag (4.37 gpt Au), including 1.7 m @ 1.7 gpt Au, 834 gpt Ag (12.83 gpt AuEq); 70.5 m @ 0.15 gpt Au, 50 gpt Ag (0.82 gpt AuEq), including 9.7 m @ 0.55 gpt Au, 199 gpt Ag (3.20 gpt AuEq); 15.3 m @ 0.30 gpt Au, 151 gpt Ag (2.31 gpt AuEq); 12.8 m @ 0.30 gpt Au, 126 gpt Ag (1.99 gpt AuEq), including 3.3 m @ 0.89 gpt Au, 302 gpt Ag (4.91 gpt AuEq); 41.1 m @ 0.24 gpt Au, 76 gpt Ag (1.24 gpt AuEq); 21.0 m @ 0.11 gpt Au, 74 gpt Ag (1.10 gpt AuEq); 27.0 m @ 0.97 gpt Au, 113 gpt Ag (2.47 gpt AuEq); 11.0 m @ 0.28 gpt Au, 160 gpt Ag (2.40 gpt AuEq); 52.1 m @ 0.69 gpt Au, 254 gpt Ag (4.08 gpt AuEq); 11.6 m @ 0.43 gpt Au, 148 gpt Ag; 32.5 m @ 0.32 gpt Au, 63 gpt Ag (1.15 gpt AuEq).

ON DEALS AND CORPORATE ISSUES

  • Argonaut Gold Inc. and AP Mining “have amended the agreement for the previously announced sale of the Ana Paula project to AP Mining (see press release dated September 11, 2020) to allow more time to meet the regulatory and government approvals required for closing. In connection with the amendment, AP Mining has agreed to pay an additional US$1.0 million at 15 months from the closing date and to reimburse all of Argonaut’s costs incurred associated with the Ana Paula project incurred between January 1, 2021 and the closing of the transaction. Closing continues to be subject to financing and receipt of all necessary approvals, which is expected in the first quarter of 2021” (Ana Paula, Guerrero).
  • Minaurum Gold Inc. entered into an option agreement with Fortuna Silver Mines Inc. pursuant to which Fortuna can earn up to an 80% interest in Minaurum’s Taviche silver project in Oaxaca. Fortuna can earn an initial 60% by making cash payments totalling $450 K and incurring in US$4 M in work expenditures over three years. Fortuna can earn an additional 20% interest “by funding Minaurum ‘s acquisition by way of option exercise of the remaining 20% interest”. The cash installments to make comprise US$75 K upon signing, US$100 K on the first anniversary, US$125 K on the second anniversary and US$150 K on the third anniversary. Drilling by previous operators of the project returned up to 34.12 m @ 262 gpt Ag and 8.35 m @ 2.05 gpt Au.
  • Sierra Metals Inc. announced that “its Board of Directors, supported by its management team and with the full support of Arias Resource Capital Fund L.P., Arias Resource Capital Fund II L.P. (the Company’s two largest shareholders) and Arias Resource Capital Fund II (Mexico) L.P., has commenced a process to explore and evaluate potential strategic alternatives focused on maximizing shareholder value. These alternatives could include, among other things, the sale of part or all of the Company, a sale of some of the assets of the Company, a merger or other business combination with another party, or other strategic transactions” (Cusi and Bolivar mines, Chihuahua).

ON SOCIAL RESPONSIBILITY

  • Minera Fresnillo donated computing equipment in Caborca, Sonora.
  • The Chihuahua Mining Cluster president, Pablo Mendez Alvídrez stated that the industry will aid with the acquisition of the Covid-19 vaccine, once it is on sale by pharmacies, for its distribution on mining communities.
  • The Grupo Mexico Foundation delivered a significant amount of protective equipment for health care personnel

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

On the image below: Quartz veining from a project in San Luis Potosí. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the Fourth Week of December, 2020

By Jorge Cirett

During the 52nd week of the year (December 21st to December 27th, 2020), at least 28 press releases were announced by companies working in Mexico. To note, six companies posted exploration advances on their properties, six more made announcements related to their shares, three more released resource related news and five more on deals/corporate matters. ON MEXICO ISSUES, the Covid pandemic has not dented mining company’s performance on the BMV. The illegal blockade on Los Filos mine, Guerrero, has been lifted (without great help from the authorities). ON EXPLORATION, in Sonora, Tocvan Ventures informed the RC drilling program has been completed at its Pilar project. In Chihuahua, Radius Gold informed on the status of its Amalia and Plata Verde projects; Mammoth Resources informed it has signed a surface agreement with two ejidos at Tenoriba. In Sinaloa, Mithril Resources released drilling results from Los Reyes, Copalquin. In Nayarit and Jalisco, Candente Gold is studying and permitting the Cocula and El Dorado projects, as well as a processing plant.  ON MINING, Golden Minerals has commenced mining at Rodeo, in Durango. Equinox Gold informed the illegal blockade on the Los Filos projects has been lifted. ON FINANCING, Orla mining is now listed on the NYSE. Consolidated Zinc consolidated its shares on a 15 to 1 basis. Azucar Minerals granted stock options to directors, employees and consultants for $465 K. Reyna Silver issued $299 K in shares to five directors and officers. VanGold Mining and Canuc Resources announced financing rounds for C$7.5 M and $300 K respectively. ON RESOURCES AND DEVELOPMENT, Sonora Gold is assessing to increase the capacity of the planned heap leach operation at Cerro Caliche, in Sonora, to 20,000 tdp. Sierra Metals filed a NI-43-101 report updating the resource base on its Cusi mine, in Chihuahua. Minera Alamos filed on SEDAR the technical report and mineral resource estimate for the Cerro de Oro project, Zacatecas. ON DEALS AND CORPORATE ISSUES, VanGold Mining signed the acquisition of El Cubo mine and El Cubo mine complex in Guanajuato with Endeavour Silver. Almaden Minerals received notification from SEMARNAT that its permit application to develop the Ixtaca project in Puebla has been rejected. Maverix Metals informed on the acquisition of royalties from the Camino Rojo project in Zacatecas and the Cristina project in Chihuahua, as well as the sale of a royalty on the Yecora project in Sonora. Odyssey Marine Exploration informed it has gained more financial support for its litigation against the Mexican government for its refusal to concede a mining permit on its “Exploraciones Oceánicas” offshore phosphate project in Baja California Sur. Elemental Royalties informed it holds a 1% NSR on the Mercedes mine, Sonora, which is owned by Equinox Gold. ON SOCIAL RESPONSIBILITY, Peñoles has been supporting soccer tournaments since 2011.

ON MEXICO ISSUES

  • The Covid pandemic has not dented mining company’s performance on the BMV (Bolsa Mexicana de Valores). At the beginning of the year the four biggest companies in the BMV (Grupo Mexico, Peñoles, Frisco and Autlán) were worth $524,500 million pesos, and now these are valued in $796,500 million pesos (US$39.5 billion), a 51.8% increase. These gains contrast with the expected decline of 25% in exploration, partly die to the pandemic, partly also due to the lack of certitude on government policies, delays or denials of permitting (see note on Almaden) and a greater tax burden.

ON EXPLORATION

  • Radius Gold Inc. informed on the exploration status of its projects in Mexico. At Amalia, in Chihuahua, Radius’s joint venture partner, Pan American Silver Corp. is funding and operating the phase 4 drill campaign, of which 1,838 m in 4 holes have been completed. At Plata Verde, also in Chihuahua, orientation induced polarization and ground magnetic surveys are being conducted. The target mineralized breccias occur under less than 100 m of volcanic cover rocks, and the geophysical surveys are planned to aid drill targeting.
  • Mammoth Resources Corp. announced the second of two ejidos (community held surface land) voted in favor of a two-year surface agreement for exploration at its Tenoriba project in Chihuahua. During “the term of the agreements the Company will be making contributions towards a number of community benefit programs and looks forward to reporting on these contributions. Mammoth will also be providing assistance to a number of the most vulnerable inhabitants of both ejidos”.
  • Mithril Resources Ltd. released good drilling results from Los Reyes target at Los Reyes project in Durango (not to mistake for Prime Mining’s Los Reyes project in Sinaloa).  Highlighted core length intercepts comprise 2.22 m @ 32.35 gpt  Au, 185 gpt Ag; 0.70 m @ 9.3 gpt Au, 125 gpt Ag; 1.20 m @ 2.05 gpt Au, 85 gpt Ag in one hole and 3.0 m @ 2.86 gpt Au, 84 gpt Ag (including 0.6 m @ 9.79 gpt Au, 165 gpt Ag) in other. Drilling is to recommence in early January 2021 at El Refugio target, whereas soil sampling is programmed for El Refugio West, La Soledad West, El Indio and Zaragoza prospects in January-February 2021.
  • Prismo Metals Inc. completed its 2020 drilling campaign at Palos Verdes, Sinaloa. A total of 436.8 m were drilled in four holes, and a fifth hole is to be completed in January 2021. The holes intercepted wide zones of discrete quartz veins in andesite with quartz and stockwork quartz veining, local pyrite and sphalerite. Results pending.
  • Tocvan Ventures Corp. informed on the completion of its campaign of reverse circulation drilling at its Pilar project, Sonora. A total of 1,505 m were drilled in nine holes, with results expected in early 2021.
  • Candente Gold Corp. announced that technical experts have been engaged for permitting and deposit modelling for the El Dorado (Nayarit) and Cocula (Jalisco) projects and for permitting of the San Dieguito de Arriba (Nayarit) plant.

ON MINING

  • Golden Minerals Corp. announced it has begun mining at its Rodeo property, Durango.  Material over 3.0 gpt Au is to be transported in January to Golden’s Velardeña 200 tpd mill. A second ball mill is to be installed to increase the processing capacity to 450 tpd.
  • Equinox Gold Corp. reported that “the blockade by members of the Carrizalillo community at the Company’s Los Filos Mine in Mexico has been removed and access to the mine has been restored. Representatives from Los Filos continue to meet regularly with community leaders to reach consensus on the remaining items related to benefits provided under the Carrizalillo social collaboration agreement”.

ON FINANCING

  • Orla Mining Ltd. is now listed on the New York Stock Exchange. Orla’s addition to the exchange is classified as a “dual listing without capital raise”.  (Camino Rojo, Zacatecas).
  • Consolidated Zinc Ltd. informed the 1 to 15 consolidation of the company securities is now complete (Plomosas, Chihuahua).
  • Azucar Minerals Ltd. has granted stock options to certain directors, employees, and consultants of the company to purchase 465 K common shares in the capital of Azucar (El Cobre, Veracruz).
  • VanGold Mining Corp. announced a part and parcel non-brokered private placement financing for gross proceeds of C$7.5 M (El Cubo, Guanajuato).
  • Canuc Resources Corp. announced the closing of a non-brokered private placement for gross proceeds of $300 K (San Javier Silver-Gold, Sonora).
  • Reyna Silver Corp. issued $299 K of its common shares toward partial annual compensation to five directors and officers of the Company (Guigui, Chihuahua).

ON RESOURCES AND DEVELOPMENT

  • Sonora Gold Corp.  informed on the expansion of several mineralized zones at its Cerro Caliche property in Sonora. Based on these results Sonoro is assessing the viability of a heap leach mining operation with an increased capacity form 8,000 to 20,000 tonnes per day. Highlighted core length intervals comprise 11.7 m @ 0.92 gpt Au; 11.25 m @ 1.08 gpt Au; 8.45 m @ 1.4 gpt Au; 5.7 m @ 1.25 gpt Au in the El Colorado zone, and 13.72 m @ 0.47 gpt Au; 15.24 m @ 0.40 gpt Au; 21.33 m @ 0.47 gpt Au; 25.91 m @ 0.42 gpt Au at Los Japoneses.
  • Sierra Metals Inc. filed a NI 43-101 report updating the resource base on its Cusi mine, in Chihuahua. Measured and indicated resources now consist of 5.36 M tonnes @ 182 gpt Ag, 0.12 gpt Au, 0.49% Pb, 0.58% Zn (215 gpt AgEq), and inferred resources of 4.89 M tonnes @ 146 gpt Ag, 0.18 gpt Au, 0.43% Pb, 0.69% Zn (183 gpt AgEq). (Note.- this should amount to close to 55 M Oz Ag, not counting other metals credits).
  • Minera Alamos Inc. filed on SEDAR the technical report and mineral resource estimate for the Cerro de Oro project, Zacatecas. The inferred mineral resource on oxide ore is 48 M tonnes @ 0.41 gpt Au, containing 630 K Oz Au.

ON DEALS AND CORPORATE ISSUES

  • VanGold Mining Inc. signed a binding letter agreement with Endeavour Silver Corp. to acquire the El Cubo mill and mill complex, in Guanajuato, 8 km from its El Pinguico property. El Cubo complex includes two underground operating mines (in care and maintenance) and a 1,500 tpd flotation plant.  VanGold intends to restart the mill at approximately 750 tpd “using mineralized material from its surface and underground stockpiles at its El Pinguico project as a significant portion of its estimated throughput for the first 36 months of operation”. El Cubo has measured, indicated and inferred resources of 2.4 M Oz Ag and 28.2 K Oz Au.
  • Almaden Minerals Ltd. Has received notification from the Mexican federal permitting authority, Secretaría de Medio Ambiente y Recursos Naturales (SEMARNAT) that the company’s initial environmental permit application (MIA) in respect of the Ixtaca project has not received approval. Almaden originally submitted the MIA in early 2019. The SEMARNAT resolution cites insufficient information regarding the impacts of open pit mining on the environment, local and regional area. “The Company is continuing its review of SEMARNAT’s response to the MIA and is evaluating its alternatives which include the re-submittal of a revised MIA, continuing dialogue, and legal options”.
  • Maverix Metals Inc. informed on some royalties included in the Newmont Corporation royalty portfolio acquired in October 29, 2020. Orla Mining Ltd. elected not to exercise its ROFR (Right Of First Refusal) on the 2.0% net smelter return royalty of oxide and transitional ore production from the Camino Rojo project located in Zacatecas; Orla expects the first gold pour in the second half of 2021. Criscora, S.A. de C.V., a wholly owned subsidiary of TCP1 Corporation, will acquire the 1.0% NSR royalty on the Yecora project located in Sonora, for a cash payment of $1.5 M, which Maverix will receive. The ROFR on the Cristina project located in Chihuahua, was not exercised and Maverix will acquire the 2.0% NSR royalty.
  • Odyssey Marine Exploration Inc. has secured up to an additional $10 M to support its pending North American Free Trade Agreement (NAFTA) claim against Mexico. The NAFTA claim relates to the “unlawful denial of the environmental permit for subsidiary Exploraciones Oceanicas’ (ExO’s) offshore phosphate project” in Baja California Sur.  The project, said to be one of the largest and highest quality phosphate sands deposits in the world, is subject to a $2.36 billion claim against Mexico under NAFTA.
  • Elemental Royalties Corp. disclosed it owns a 1% Net Smelter Returns (“NSR”) royalty on Premier’s Mercedes Mine, a key asset in the Premier portfolio, which becomes payable to Elemental from July 28, 2022 following a time hurdle. Premier Gold Mines Ltd. was recently acquired by Equinox Gold Corp.

ON SOCIAL RESPONSIBILITY

  • Peñoles has been supporting soccer tournaments since 2011 with the installation of the “Copa Santos Peñoles”. The last edition of the tournament (2019) counted with the participation of 288 teams.

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

On the image below: Quartz vein stockwork from a project in San Luis Potosí. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the Third Week of December, 2020.

Fault slickenside

By Miguel A Heredia

During the fifty one week of the year (December 14th to December 20th, 2020), at least 22 press releases were announced by companies working in Mexico and 4 news published by the media, with seven disclosing deals and corporate issues, five communicating production and financial results, four informing on exploration results, three announcing financial rounds, two discussing social issues, two reporting on resources and development of their mine operations, and two  commenting on Mexican issues.  ON MEXICO ISSUES, Great Panther restarted operations at its Topia mine in Durango, after experiencing contagious of COVID-19 among the workforce. The Chihuahua Mining Cluster appointed its new board president. The Association of Miners of Sonora (AMSAC) decided to extend the current board for one year.  ON EXPLORATION, In Baja California Norte, Comet announced that a drilling program will commence in 2021 at its Santa Teresa project. In Sonora, Silver Viper released drill results from its El Rubi project. In Chihuahua, Monarca Minerals announced its intention to conduct an initial 5,000m of drilling at its San Jose project. In Sinaloa, Vizsla released surface and underground sampling results from its Panuco project. ON MINING, GoGold presented Q3, 2020 production and financial results from its Parral Tailing operation in Chihuahua. Prime reported Q2, 2020 financial results. ON FINANCING, Silver Dollar granted stock options to its directors, officers, and consultants (La Joya property, Durango). Gatos Silver provided an update and announced inclusion in the Russell 2000 Index, as well as in the VanEck Vectors Junior Gold Miners ETF (GDXJ) (Los Gatos, Chihuahua).  ON RESOURCES AND DEVELOPMENT, Southern Silver reported drill results from its Cerro Las Minitas property in Durango. Capitan Mining released RC drill results from three holes collared at its Peñoles project in Durango. Gatos Silver commenced a 58,000m infill and extensional drilling program at its Cerro Los Gatos deposit in Chihuahua. GR reported drill results from 2 holes collared at its Plomosas property in Sinaloa. Fabled started an 8,000m drilling program at its Santa Maria project in Chihuahua. ON DEALS AND CORPORATE ISSUES, Aztec Minerals and Kootenay entered into a JV option agreement for the Cervantes project in Sonora. Defiance acquired option to purchase royalty at the Tepal property in Michoacan. Pan American appointed a new member to its board of directors (La Colorada, Zacatecas). Equinox announced friendly acquisition of Premier Gold (Mercedes Mine, Sonora). Canuc appointed a new special adviser to the company (San Javier property, Sonora). Santacruz reached an agreement with Peñoles to extend the Zimapan Mine lease until June 30, 2021.   ON SOCIAL RESPONSIBILITY, Minera Media Luna, a subsidiary of Torex Gold invested MXP $1.8M to improve the Nuevo Balsas Health Center. Grupo Mexico donated eight thousand plants in Colima.

ON MEXICO ISSUES

  • Great Panther Mining Limited, restarted operations at its Topia mine in Durango, after have experienced contagious of COVID-19 among the workforce. Mining resumed on December 17 and the plant is expected to begin processing ore on December 21.
  • The Chihuahua Mining Cluster appointed its new board president. This event was joined by the special presence of the state leadership of the Association of Mining Engineers, Metallurgists and Geologists of Mexico; the direction of the Mining Chamber of Mexico; guild suppliers, as well as the new director of mining for the state government.
  • The Association of Miners of Sonora (AMSAC) decided to extend the current board for one year as a result of the pandemic that paralyzed multiple activities in the sector.

ON EXPLORATION

  • Comet Resources Limited announced that a drilling program will commence in 2021 at its Santa Teresa project in Baja California Norte. Comet has identified sources of water for the drilling program and has improved roads to the drill sites. It is also in the process of getting the drill permit to commence the drilling in 2021. In addition, Comet has engaged a local geological consultancy to assist them with all geological programs, including permitting for drilling.
  • Silver Viper Minerals Corp., released drill results from its El Rubi project in Sonora. The most significant drill interval was encountered in hole LV20-283 with 0.72 g/t Au and 50 g/t Ag over a true width (TW) of 13.89m, including several intersection as 2.55 g/t Au and 226 g/t Ag over a TW of 0.64m, 3.26 g/t Au and 215 g/t Ag over a TW of 1.92m, 1.58 g/t Au and 108 g/t Ag over a TW of 3.84m, 4.38 g/t Au and 282 g/t Ag over a TW of 0.64m, 33.8 g/t Au and 67 g/t Ag over a TW of 1.6m, and 77.9 g/t Au and 133 g/t Ag over a TW of 1m. Silver Viper informed also that it has conducted initial bottle roll leach tests on four 500 g composites of mineralized material from El Rubi with extracting recoveries of 90-95% for Au and 62-76% for Ag. The company plans to conduct more detail test work.
  • Monarca Minerals Inc., announced its intention to conduct an initial 5,000m of drilling at its San Jose project in Chihuahua. Monarca plans to drill 10 holes to test some IP targets to depths of up to 500m. Monarca is looking to sign a surface agreement with the local Ejido as well as to apply to obtain the drilling permit.
  • Vizsla Resources Corp., released surface and underground sampling results from its Panuco project. Sampling highlights include 11.55 g/t Au and 2,091 g/t Ag (3,042 g/t AgEq) over a true width (TW) of 1m, and 6.7 g/t Au and 723 g/t Ag (1,304 g/t AgEq) over a TW of 1.2m at Agua Zarca target; 2.23 g/t Au and 264 g/t Ag (456 g/t AgEq) over a TW of 2.9 at El Batel target; 0.77 g/t Au and 315 g/t Ag (368 g/t AgEq) over a TW of 4.1m, including 1.28 g/t Au and 892 g/t Ag (958 g/t AgEq) over a TW of 1.3m at La Bomba target; and 0.67 g/t Au and 225 g/t Ag (275 g/t AgEq) over a TW of 10.5m, including 1.34 g/t Au and 371 g/t Ag (473 g/t AgEq) over a TW of 4m at Huaco target. These results will help to generate drill targets for 2021.

ON MINING

  • GoGold Resources Inc., presented Q3, 2020 production and financial results from its Parral Tailing operation in Chihuahua. The company produced 605,723 Oz AgEq at a cash and AISC of USD $11.97 and USD $14.31 per Oz AgEq respectively. GoGold reported revenue of USD $39.5M, a net income of USD $43.1M, and cash flow from operations before working capital changes of  USD $5.5M, including free cash flow from Parral of USD $6.5M.
  • Prime Mining Corp., announced Q2, 2020 financial results.   The company reported a net loss of CAD $1,656,466, cash, cash equivalent and short-term investment of CAD $7,678,959, total current liabilities of CAD $655,545, total liabilities of CAD $1,668,247, and total shareholder´s equity of CAD $19,921,788 (Los Reyes project, Sinaloa).

ON FINANCING

  • Silver Dollar Resources Inc., granted stock options to its directors, officers, and consultants to purchase up to 2.55M shares of the company. Shares are exercisable at $1.75 per share for five years (La Joya property, Durango).
  • Gatos Silver Inc., provided an update and announced inclusion in the Russell 2000 Index small capitalization stocks index, effective December 2021. Gatos recently completed an IPO with gross proceeds of USD $173M resulting in the largest precious metals IPO since 2010 and the largest precious metals equity financing during 2020. The company also announced the inclusion in the VanEck Vectors Junior Gold Miners ETF (GDXJ) (Los Gatos property, Chihuahua). 

ON RESOURCES AND DEVELOPMENT

  • Southern Silver Exploration Corp., reported drill results from Mina La Bocona target area at its Cerro Las Minitas property in Durango. Significant drill intersects were encountered at hole 20CLM-125 with 1.41 g/t Au and 36 g/t Ag (201 g/t AgEq) over a 28.5m, including 5.1 g/t Au and 72 g/t Ag (552 g/t AgEq) over 2.8m, and a deeper intersection of 0.45 g/t Au, 421 g/t Ag, 5.5% Pb, and 1.9% Zn (704 g/t AgEq or 17.9% ZnEq) over 6.1m (true width of 4.0m), including 0.64 g/t Au, 1,420 g/t Ag, 16.8% Pb, and 00.6% Zn (2,012 g/t AgEq or 51% ZnEq) over 0.9m (true width of 0.6m). This drill result is part of a 10,000m, 2020-2021 core drilling program on the Cerro Las Minitas project. Two additional holes have been completed at Mina La Bocona target. Seven holes totaling 2,470 metres have now tested the Mina La Bocona target area with assays still pending from each hole.
  • Capitan Mining Inc., released drill results from three holes collared at its Peñoles project in Durango. Significant drill intercepts were encountered in holes 20-CARC-12 with 0.63 g/t Au over 73.15m, including 0.91 g/t Au over 36.5m; hole 20-CARC-09 with 0.69 g/t Au and 21 g/t Ag over 64.01m, including 1.26 g/t Au over 13.72m; and hole 20-CARC-08 with 0.58 g/t Au over 48.77m, including 0.82 g/t Au and 16 g/t Ag over 28.96m.
  • Gatos Silver Inc., commenced a 58,000m infill and extensional drilling program at its Cerro Los Gatos deposit in Chihuahua. The program is expected to cost USD $6.1M. Drilling has already begun with a program of 27,000m with an expected cost of USD $2.8M and is focused on definition and extension of the Cerro Los Gatos deposit. Completion of the program is anticipated by June 2021. A second program focused on expanding resources throughout the Los Gatos district is planned to initiate in early 2021.
  • GR Silver Mining Ltd., reported drill results from 2 underground holes collared at its Plomosas property in Sinaloa. Hole PLI20-01 intersected 30 g/t Ag, 0.01 g/t Au, 1.3% Pb, and 2.8% Zn (254 g/t AgEq) over a true width (TW) of 16m, including 55 g/t Ag, 0.01 g/t Au, 4% Pb, and 8.3% Zn (424 g/t AgEq) over a TW of 4m; and hole PLI20-02 intersected 18 g/t Ag, 0.3 g/t Au, 1% Pb, and 1.7% Zn (130 g/t AgEq), including 107 g/t Ag, 1.7 g/t Au, 6.6% Pb, 9.6% Zn, and 0.2% Cu (778 g/t AgEq) over a TW of 4.2m. GR also reviewed and validated historical data from holes SD-62 and SD-67, confirming the presence of Au-Cu rich mineralization in other levels of the Plomosas Mine area. Hole SD-62 encountered  31 g/t Ag, 0.12 g/t Au, 0.8% Pb, 1.4% Zn, and 1.3% Cu (200 g/t AgEq) over a TW of 25.3m, while hole SD-63 intersected 115 g/t Ag, 1.04 g/t Au, 11.3% Pb, 5.4% Zn, and 0.7% Cu (800 g/t AgEq) over a TW of 6.1m.
  • Fabled Silver Gold Corp., started an 8,000m drilling program at its Santa Maria project in Chihuahua to test 11 new IP anomalies identified during the first ever geophysical survey conducted at the property. A 3-D IP survey covered the entire property at 50m-line spacing and was 16 blocks in size with penetration to -500m minimum. In addition, 27km of ground magnetic was completed over the property resulting in the creation of several products such as total field, first derivate, reduce to pole, and 3D inversion magnetics.  “Fabled’s management team strongly believes that the Santa Maria Property is an under-explored, high-grade silver-gold project with significant exploration potential to expand mineral resources and identify new discoveries”. 

ON DEALS AND CORPORATE ISSUES

  • Aztec Minerals Corp., and Kootenay Silver Inc., entered into a JV option agreement for the Cervantes project in Sonora. Aztec has already completed its earn-in and exercised its option to acquire a 65% interest in the property. Now Aztec hold 65% interest in the property while Kootenay the remaining 35%. Both parties will keep their interest at Cervantes through share ownership in Aztec Minerals JV Corporation through its wholly owned subsidiary, Minera Azteca Dorado S.A. de C.V.
  • Defiance Silver Corp., acquired option to purchase the 2.5% NSR of the Tepal property in Michoacan from Minera Tepal, over four years for a total consideration of USD $4.85M.
  • Pan American Silver Corp., appointed a new member to its board of directors (La Colorada, Zacatecas).
  • Equinox Gold Corp., announced it has entered into a definitive agreement with Premier Gold Mines Limited to acquire all of the outstanding shares of Premier. Premier will spin-out to its shareholders shares of a newly created US-focused gold production and development company to be called i-80 Gold Corp. On closing of the transaction, existing Equinox Gold and Premier shareholders will own approximately 84% and 16% of Equinox Gold, and Equinox Gold and existing shareholders of Premier will own 30% and 70% of i-80 Gold, respectively, on an issued share basis.
  • Canuc Resources Corporation appointed a new special adviser to the company (San Javier property, Sonora). 
  • Santacruz Silver Mining Ltd., reached an agreement with Minera Cedros S.A.de C.V., a subsidiary of Industrias Peñoles S.A.B. de C.V. to extend the Zimapan Mine lease from December 31, 2020 to June 30, 2021.

ON SOCIAL RESPONSIBILITY

  • Minera Media Luna, a subsidiary of Torex Gold invested MXP $1.8M to improve the Nuevo Balsas Health Center, which will serve close to four thousand inhabitants of communities such as Nuevo Balsas, San Nicolás, La Fundición, Real del Limón, Acalmantlila, Balsas Sur, San Luis and Tomixtlahuacán. This center seeks to provide decent medical care since the areas that are farthest from the municipal capitals are severely affected in their health services due to the conditions of difficult access and remoteness.
  • Grupo Mexico donated eight thousand plants to the City Council and to the  Integral Development of the Family (DIF) of Colima to reforest the public gardens of the rural communities contributing to improve the environment and quality of life of the families of the municipality of Colima.

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

On the picture above, a fault slickenside in a Mn-Fe occurrence in a prospect in Chihuahua, Mexico.  Photo by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the Second Week of December, 2020

By Jorge Cirett

During the 50th week of the year (December 7th to December 13th, 2020), at least 31 press releases were announced by companies working in Mexico. To note, ten companies posted exploration advances on their properties and seven more published on project development. ON MEXICO ISSUES, a list of eight projects that have changed hands in the last six months include properties in Sonora, Chihuahua, Durango and Zacatecas. The AIMMGM confirmed its International Convention will be held in 2021 in Acapulco, Guerrero (With so many options, Why Acapulco? Why?), as vaccination is likely to have the pandemic under control by then. The proposed law against outsourcing is likely to affect the mining industry in Sonora. The Naica mine (site of the famous Crystals Cave) in Chihuahua is to see activity again.  ON EXPLORATION, in Sonora, Riverside reported trench sampling results at the Cuarentas project; Tocvan Ventures informed RC drilling advances at its Pilar project; Colibri Resource released assays from trench sampling at Evelyn. In Chihuahua, Reyna Silver started drilling at the Guigui project, in the Santa Eulalia district. In Sinaloa, Brigadier Gold updated on the exploration of the Picachos project. In Durango, Mithril Resources released drilling results from Copalquin; Canasil Resources reported on two more drill holes at the Nora project. In Zacatecas, VanGold Mining completed a shaft to the 7th level at its Pinguico project; Defiance Silver commenced its 5,000 m drilling program at San Acacio; Advance Gold defined a new geophysical anomaly at Tabasqueña.  ON MINING, Mexus Gold continues to produce from its heap leach operation at the Santa Elena mine in Sonora. Gatos Silver informed on production on the third quarter. Alamos Gold provided its 2021 gold production guidance. ON FINANCING, First Majestic is to start paying a dividend. Canuc Resources and Oroco Resource closed non-brokered private placements for CAD$1 M and $15.5 M respectively. Alien Metals is to issue 3.4 M shares of no par value. ON RESOURCES AND DEVELOPMENT, GR Silver Mining reported on bulk metallurgical testing at Plomosas, Sinaloa. Sonoro Gold released drilling results from the Cerro Caliche project in Sonora. GoGold Resources released drilling results from La Trini deposit at its Los Ricos North project in Jalisco. Consolidated Zinc continues the plant refurbishment at its Plomosas mine in Chihuahua. Impact Silver is re-interpreting all the historical exploration data gathered at the Real de Zacualpan district in Estado de Mexico. Sierra Metals released a new PEA on the expansion to 2,400 tpd of its Cusi mine, in Chihuahua. Southern Silver Exploration reported results of two deep holes on the South Skarn target of Cerro Las Minitas, Durango.  ON DEALS AND CORPORATE ISSUES, Capstone Mining signed a precious metals purchase agreement with Wheaton Precious Metals International. ON SOCIAL RESPONSIBILITY, Grupo Peñoles, Fresnillo PLC, Peña Colorada, Minera Media Luna, Almaden Minerals and Esperanza Silver informed on programs to aid communities near their operations.

ON MEXICO ISSUES

  • Projects that have changed hands in the second half of the year include El Picacho (Sonora) by Silver Crest, MVZ within El Pajarito project (Chihuahua) by Li-ion Graphite, Juliana (Sonora) by Tarachi Gold, Magistral de Oro tailings (Durango) by Tarachi Gold, Margarita (Chihuahua) by Magna Gold, La Sanguijuela and Cerro Gordo (Jalisco) by Endeavour Silver, Lucita (Zacatecas) by Defiance Silver and Santa María (Chihuahua) by Fabled Silver.
  • The AIMMGM (Asociación de Ingenieros de Minas, Metalurgistas y Geólogos de México) announced that thanks to the appearance of the Covid-19 vaccine, the next International convention sponsored by the association is to be held in Acapulco, Guerrero, in October 19-22 of 2021.
  • Coparmex Sonora (Confederación Patronal de la República Mexicana – Sonora) stated that the proposed law against outsourcing is to affect the mining industry on the state, as 40% of its work force is under this scheme.
  • The Naica mine in Chihuahua (home to the famous Cave of Crystals), which closed in 2015, is to see miners again, as a group of twenty has been contracted to start working again. The mine is also to supply water from its underground workings to irrigate 200 hectares of farm land.

ON EXPLORATION

  • Mithril Resources Ltd. released drilling results from its Copalquin project in Durango. Highlighted core-length intercepts comprise 9.35 m @ 7.84 gpt Au, 138 gpt Ag (including 4.0 m @ 16.44 gpt Au, 287 gpt Ag) at El Refugio; 14.85 m @ 0.85 gpt Au, 48 gpt Ag (including 1.30 m @ 5.07 gpt Au, 309 gpt Ag) and 9.78 m @ 0.85 gpt Au, 13 gpt Ag; 11.70 m @ 1.16 gpt Au, 70 gpt Ag (including 1.0 m @ 7.17 gpt Au, 236 gpt Ag; 2.90 m @ 1.93 gpt Au, 216 gpt Ag; 5.28 m @ 0.39 gpt Au, 26 gpt Ag; 10.15 m @ 0.55 gpt Au, 16 gpt Ag (including 1.0 m @ 3.75 gpt Au, 70 gpt Ag.
  • Riverside Resources Inc. and Hochschild Mining reported trench sampling results at its Cuarentas project in Sonora. Highlighted trench sampling comprises 12.5 m @ 0.59 gpt Au; 12.5 m @ 0.33 gpt Au; 25 m @ 0.27 gtp Au; 22.5 m @ 0.17 gpt Au; 6.0 m @ 0.24 gpt Au at Santa Rosalía. Channel sample results from the Centro target include 1.0 m @ 2.23 gpt Au; 1.5 m @ 1.01 gpt Au; 1.2 m @ 0.53 gpt Au.
  • VanGold Mining Corp. has completed clearing the Pinguico shaft to adit level 7, at El Pinguico mine, Zacatecas. The company expects to be able to sample the lower portion of an underground stockpile (or backfill) that the Mexican Geological Survey (SGM) measured at 149 K tonnes @ 1.66 gpt Au, 143 gpt Ag.
  • Tocvan Ventures Corp. informed more than 400 m of reverse circulation drilling in three holes have been sunk at its Pilar project in Sonora. Results are pending and expected early in the New Year.
  • Defiance Silver Corp. commenced drilling at its San Acacio project in Zacatecas. The 5,000 m program is to focus on the Veta Grande vein system in hanging wall structural offsets and the Veta Grande vein system at depth.
  • Reyna Silver Corp. started drilling at its Gugui project in the Santa Eulalia district of Chihuahua. “Santa Eulalia is Mexico’s largest Carbonate Replacement Deposit (CRD) but despite over 300 years of continuous mining activity, the intrusive source for the system, which is Reyna’s initial target focus, has not been found…….. Targeting is based on a combination of geology, geochemistry, geophysics and hyperspectral satellite imagery analysis”. The initial drilling is to comprise 10,000 m.
  • Canasil Resources Inc. released results from two more drill holes on the Candy vein at its  Nora project in Durango. True width (TW) intervals comprise 0.72 m @ 1.46 gpt Au, 7 gpt Ag in one hole, and 2.40 m @ 4.78 gpt Au, 351 gpt Ag, 0.5% Pb+Zn (including 0.45 m @ 15.60 gpt Au, 561 gpt Ag, 0.5% Pb+Zn); 0.45 m @ 7.13 gpt Au, 639 gpt Ag, 0.7% Pb+Zn; 1.49 m @ 11.86 gpt Au, 378 gpt Ag, 0.21% Pb+Zn; 0.45 m @ 36.70 gpt Au, 1,010 gpt Ag, 0.35% Pb+Zn.
  • Colibri Resource Corp. released further assay results from the trenching program at its Evelyn project in Sonora. Twenty two out of 95 samples  returned more than 0.1 gpt Au, and 6 were greater than 1.0 gpt Au, peaking at 17.75 gpt Au. Areas with good gold values include El Sahuaro, Cerro Rojo and Central Evelyin targets.
  • Brigadier Gold Ltd. updated in the exploration at its Picachos project in Sinaloa. “The 3,954 hectare Picachos Property is centered over the historic “Viva Zapata” National Mineral Reserve, Sinaloa, Mexico.  It overlaps two mineralized systems, a porphyry copper‐molybdenum system hosted by a Paleocene granite‐granodiorite intrusive complex, and a gold‐silver vein complex comprised of both east‐northeasterly trending veins (La Cocolmeca Vein System) and northwesterly trending veins (El Placer System)”. The company has established its community relations, repaired roads, upgraded the water supply, built a core processing facility, drill tested the SW of the Cocolmeca vein system and discovered several new veins by trenching on historic soil anomalies.
  • Advance Gold Corp.  informed on results of a newly completed geophysical study at its Tabasqueña project in Zacatecas. The induced polarization survey delineated a new large chargeability anomaly to the west of known anomalies.

ON MINING

  • Mexus Gold US. announced the gold production from its newly completed leach pad at its Santa Elena mine in Sonora is to be sold before the end of the year.
  • Gatos Silver Inc. reported third quarter 2020 results. At the Cerro Los Gatos mine in Chihuahua, 164.5 K tonnes were mined to produce 6,097 tonnes of lead concentrate @ 5,726 gpt Ag, 6.82 gpt Au, 59.71% Pb, 9.69% Zn and 7,980 tonnes of zinc concentrate @ 572 gpt Ag, 0.52 gpt Au, 1.60% Pb, 56.46% Zn. Recoveries stood at 85.1% Ag, 87.3% Pb, 73.9% Zn. The mine was recommissioned in late May from the pandemic lockdown with a monthly production rate of 1,750 tpd.
  • Alamos Gold Inc. provided guidance for gold production and costs for 2021, including from its Mexican operations. At Mulatos, in Sonora, Alamos is to produce 150-160 K Oz Au at total cash cost of $840-890 per Oz Au and Mine-site-all-in-sustaining-cost of $1,060-1,110 per Oz Au. The Mulatos district is to produce 140-150 K Oz Au in 2020, at cash cost $840-890 per Oz Au and Mine-site AISC of $940-980 per Oz Au, at an operating rate of 22,000 tpd @ 0.9-1.1 gpt Au, recovering 60% of gold. A total of $9 M in exploration is to be spent at Mulatos in 2021.

ON FINANCING

  • First Majestic Silver Corp. announced the company will start paying a dividend of 1% net revenues commencing after the completion of the first quarter 2021 (San Dimas, Durango).
  • Canuc Resources Corp. closed a non-brokered private placement for CAD$1.02 M in gross proceeds (San Javier silver -gold, Sonora).
  • Alien Metals Ltd. announced an incoming share issue of 3.4 M units of no par value (Los Campos and San Celso, Zacatecas).
  • Oroco Resource Corp. closed a non-brokered private placement for gross proceeds of $15.5 M (Santo Tomás, Sinaloa).

ON RESOURCES AND DEVELOPMENT

  • GR Silver Mining Ltd.  reported results of bulk metallurgical testing at its Plomosas project in Sinaloa. The 2,700 tonnes sample was excavated from a representative zone of the San Juan area underground development – San Juan vein & breccia, and sent for off-site processing. The samples produced a concentrate that averaged 15,147 gpt Ag and 46.2 gpt Au (recovery rates were not mentioned).
  • Sonoro Gold Corp. released assay results from the ongoing drilling program at its Sonoro project in Sonora. Highlighted core length intercepts comprise 16.25 m @ 0.67 gpt Au, 5 gpt Ag; 10.70 m @ 0.29 gpt Au, 4 gpt Ag; 20.95 m @ 0.50 gpt Au, 25 gpt Ag; 21.0 m @ 0.88 gpt Au, 18 gpt Ag (including 2.90 m @ 3.86 gpt Au, 48 gpt Ag); 9.50 m @ 0.40 gpt Au, 2 gpt Ag, at the El Rincón-Veta de Oro zone, and 12.19 m @ 0.35 gpt Au; 45.72 m @ 0.36 gpt Au; 4.57 m @ 0.66 gpt Au; 28.96 m @ 0.22 gpt Au; 12.19 m @ 0.45 gpt Au; 21.33 m @ 0.58 gpt Au; 24.38 m @ 0.75 gpt Au; 21.34 m @ 0.81 gpt Au (including 6.10 m @ 2.03 gpt Au) at the Buena Suerte and Japoneses zones.  
  • GoGold Resources Inc. released additional assays from drilling at La Trini deposit, part of the Los Ricos North project in Jalisco. Core length intercepts comprise 23.1 m @ 0.04 gpt Au, 44 gpt Ag; 29.5 m @ 0.69 gpt Au, 91 gpt Ag (including 16.7 m @ 1.18 gpt Ag, 141 gpt Ag that include 6.3 m @ 2.66 gpt Au, 320 gpt Ag); 36.7 m @ 1.00 gpt Au, 69 gpt Ag; 61.4 m @ 1.06 gpt Au, 124 gpt Ag (including 13.9 m @ 4.29 gpt Au, 477 gpt Ag that include 3.4 m @ 14.28 gpt Au, 1,694 gpt Ag); 15.6 m @ 0.11 gpt Au, 93 gpt Ag; 44.1 m @ 0.56 gpt Au, 46 gpt Ag (including 6.4 m @ 2.18 gpt Au, 108 gpt Ag); 33.0 m @ 1.24 gpt Au, 68 gpt Ag (including 6.0 m @ 4.94 gpt Au, 218 gpt Ag).
  • Consolidated Zinc Ltd. announced the plant refurbishment of its Plomosas mine in Chihuahua is on time and on budget. The primary ball mill has been delivered to site, the crushing circuit dry testing has been completed, flotation cells are in the purchasing stage and the tailings dam, construction is due to commence.
  • Impact Silver Corp. contracted a consultant to re-interpret data “from extensive historic geophysical surveys carried out over the southern portions of the large Royal Mines of Zacualpan Project in central Mexico. This area hosts the Capire open pit silver deposit, the Manto America bulk tonnage gold target and many other exploration areas. The historic data sets include IP (Inverse Polarization), airborne magnetometer and EM (electromagnetics), radiometric and ground gravity surveys that were carried out by a previous operator in the 1990’s”.
  • Sierra Metals Inc. reported results from a PEA (preliminary economic assessment) on the expansion of its Cusi mine, Chihuahua. The report sets an after-tax net present value (NPV) of US$81 Million at an 8% discount rate assuming a long term silver price of US$20/Oz, envisaging the increase of production from 1,200 to 2,400 tpd, with an NPV (@ 8%) of US$28.1 M, and IRR of 46.8%, with a mine life of 13 years, processing ore @ 127.2 gpt Ag, 0.12 gpt Au, 0.48% Zn, 0.34% Pb to produce 33.4 M Oz Ag.   The expected net after-tax cash flow is US$134 M.
  • Southern Silver Exploration Corp. reported assay results from its 10,000 m core drilling program on Cerro Las Minitas, Durango. The two holes reported are from the South Skarn target, with highlighted true width (tw) intervals comprising 2.7 m @ 511 gpt Ag 0.1 gpt Au, 0.13% Cu, 5.0% Pb, 3.7% Zn (including 0.6 m @ 902 gpt Ag, 0.05 gpt Au, 0.16% Cu, 7.8% Pb, 8.4% Zn); 1.6 m @ 182 gpt Ag, 0.23 gpt Au, 0.21% Cu, 4.4% Pb, 4.1% Zn; 0.9 m @ 247 gpt Ag, 0.19 gpt Au, 0.07% Cu, 4.7% Pb, 1.2% Zn; 3.3 m @ 304 gpt Ag, 0.11 gpt Au, 0.18% Cu, 4.8% Pb, 1.9% Zn (including 0.6 m @ 607 gpt Ag, 0.15 gpt Au, 0.49% Cu, 11.0% Pb, 3.4% Zn); 10.4 m @ 172 gpt Ag, 0.08 gpt Au, 0.15% Cu, 3.8% Pb, 3.7% Zn (including 5.8 m @ 286 gpt Ag, 0.11 gpt Au, 0.27% Cu, 6.4% Pb, 5.8% Zn); 1.2 m @ 303 gpt Ag, 0.05 gpt Au, 0.02% Cu, 7.1% Pb, 5.8% Zn.

 ON DEALS AND CORPORATE ISSUES

  • Capstone Mining Corp. entered into a definitive precious metals purchase agreement with Wheaton Precious Metals International Ltd.. Wheaton will pay an upfront cash consideration of $150 M for 50% of the silver production until 10 M Oz have been delivered, thereafter dropping to 33% of silver production for the life of mine from the Capstone’s Cozamin Mine in Zacatecas.

ON SOCIAL RESPONSIBILITY

  • Grupo Peñoles donated 30 ventilators, 35 ventilator circuits and more than 90 thousand face masks in Chihuahua.
  • The Mining Fund provided resources for a water well in Zacatecas.
  • Fresnillo PLC informed on its efforts aiding on the recovery and promotion of wildlife in Zacatecas.
  • Peña Colorada, Televisa and the Mexican Bank association are sponsoring scholarships for 121 students in Colima.
  • Minera Media Luna (Torex Gold) funded the asphalting of streets of communities in Cocula, Guerrero.
  • Almaden Minerals informed that an “irrigation dam developed by the Company in partnership with the Federal Government water authority (“CONAGUA”) and a local irrigation group from the community of Zacatepec, is now in operation”(in Puebla).
  • Esperanza Silver intends to develop the Esperanza project in Morelos in a sustainable way with social inclusion.

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

On the image below: Argillic alteration at Villa de Reyes, San Luis Potosí. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the First Week of December, 2020.

Quartz blade (boiling texture)

By Miguel A Heredia

During the fifty eight week of the year (November 30th to December 06th, 2020), at least 25 press releases were announced by companies working in Mexico and 7 news published by the media, with fourteen disclosing deals and corporate issues, six informing on exploration results, four discussing social issues, three reporting on resources and development of their mine operations, three commenting on Mexican issues, and two communicating production and financial results.  ON MEXICO ISSUES, Fernando Alanis, President of The Mexican Mining Chamber (CAMIMEX) declared that mining is one of the most regulated sectors that care for the environment.  There is a great hope to reactivate the economy of Naica, Chihuahua.  Newmont Corporation, operator of the Peñasquito mine in Zacatecas, reported to the Ministry of the Interior the progress of the definitive agreement to end the conflict with ejidatarios.   ON EXPLORATION, In Sonora, Tocvan and its JV partner Colibri announced the commencement of a 1,500m RC drilling program at its El Pilar project and Tarachi released drill results from its la Dura mine. In Chihuahua, Golden Minerals reported that it has completed a 3,400m drilling program in 15 drill holes at its Yoquivo project. In Sinaloa, Prismo has commenced a 500m drilling program at its Palos Verdes project. In Durango, Mithril provided an update on the drilling activities carried out at its Copalquin project.  ON MINING, Mexus announced that leaching commenced at its 250,000 tonnes leach pad at its Santa Elena mine in Sonora. Santacruz announced Q3, 2020 financial results from its Mexican operations.  ON FINANCING, no relevant information.  ON RESOURCES AND DEVELOPMENT, Capitan Mining released RC drill results from the first seven holes collared at its Peñoles project in Durango, expanding the known gold mineralization. Endeavour intersected high grade mineralization at its Bolañitos mine in Guanajuato. VanGold reported underground channel sampling results from its Pinguico mine in Guanajuato, with assays up to 1,136 g/t AgEq.  ON DEALS AND CORPORATE ISSUES, Almaden announced that the court decision upholded the original, 14,000 Ha larger concessions, which the Company originally held at its Ixtaca project in Puebla. Auxico announced the resignation of one of its directors and the appointment of a new member to its board of directors (Zamora property, Sinaloa). Barksdale announced that its common shares commenced to trade on the OTCQX best market in the USA under the symbols “BRKCF” (San Javier project, Sonora). Defiance announced that it has entered into an option agreement with Pan American Silver to acquire 100% interest in the Lucita property in Zacatecas. Fabled closed its previously announced acquisition of the Santa Maria mine in Chihuahua. Fortuna Silver provided and update on the status on a dispute royalty on one of its extracting mining concessions at its San Jose mine in Oaxaca. Magna Gold announced the change of its fiscal year-end from March 31 to December 31 (San Francisco mine, Sonora).  Orex announced management changes (Sandra-Escobar project, Durango).  Orla Mining appointed a new member to its board of directors (Camino Rojo project, Zacatecas). Prismo announced that it has entered into an option agreement to acquire the remaining 25% interest in the Palos Verdes property in Sinaloa. Silver Spruce signed a definitive agreement to acquire 50% interest in the Jackie property in Sonora. Tarachi announced the appointment of its new CFO and its Corporate Secretary (La Dura mine, Sonora). Vizsla appointed its new CFO (Panuco project, Sinaloa). ON SOCIAL RESPONSIBILITY, The Sonora Mining Cluster recognized 40 partners for their commitment to Corporate Social Responsibility (CSR), during the closing of the MINNOVACIÓN 2020 Forum. Fresnillo plc donated 30,000 face masks to the Zacatecas State Government.  Newmont Peñasquito delivered pantries and cleaning kits in localities of Mazapil. The mining sector in Mexico has supported efforts to alleviate the effects of the COVID-19 pandemic.

ON MEXICO ISSUES

  • Fernando Alanis, President of The Mexican Mining Chamber (CAMIMEX) declared that mining is one of the most regulated sectors that cares for the environment. The mining sector makes strong investments to promote social development at its communities, invests in environmental issues and is one of the main producers of trees and reforestation. Mining complies with 1,077 federal, state and municipal requirements in compliance with standards, laws and regulations.
  • Economy in Naica, Chihuahua could be reactivated since there has already been a proposal acceptable by members of the Naica Ejido and the Peñoles Mining Company for the extraction of water for agricultural use, and in turn the company will start with the exploration works contemplating a possible opening of the mine. For now, the hiring of 40 people is contemplated to work in the mine, and the ejidatarios will start fallow work.
  • Newmont Corporation, operator of the Peñasquito mine in Zacatecas, reported to the Ministry of the Interior the progress of the definitive agreement to end the conflict with ejidatarios.  The company reported that 95% of the ejidatarios have received a payment for the rental of lands for exploration. It also confirmed that a permit was obtained from the National Water Commission (CONAGUA) for the drilling of a domestic water well, which will benefit Ejido Cedros.

ON EXPLORATION

  • Tocvan Ventures Corp., and its JV partner Colibri Resource Corp., announced the commencement of a 1,500m RC drilling program at its El Pilar project.  This RC drilling has been designed to confirm selected historical drilling and extend mineralization in the Main Zone along strike. It also will provide information to better define drill targets to test deeper mineralization based on geophysical results and structural interpretations.
  • Tarachi Gold Corp., released drill results from its la Dura mine in Sonora. Significant results were encountered in hole JAB-20-06 with 3.95g/t Au over 8m (from 2.25m to 10.25m),  5.05 g/t Au over 200.75m (from 22.25m to 43m), including 14.5g/t Au over 6.10m (from 27.65m to 33.75m).
  • Golden Minerals Company, reported that it has completed a 3,400m drilling program in 15 drill holes at its Yoquivo project to test the Pertenencia, San Francisco and Esperanza vein systems. Drilling results will be announced within the next few months.
  • Prismo Metals Inc., announced the commencement of a 500m drill program at its Palos Verdes property in Sinaloa. The program will consists of four to five holes, with the longest planned at 150-175m to test the vein lateral to, and below, high-grade intercepts drilled in the past. The best intercept from that program was 8.4 g/t Au and 2,336 g/t Ag, over 0.8m true width.
  • Mithril Resources Ltd., provided an update on the drilling activities carried out at its Copalquin project. Recent drill results from El Refugio target with 15-30m quartz breccia zones indicate the top of a large hydrothermal system at El Cometa project, characterized by extensive surface alteration and rhyolite dome intrusions. This alteration is observed to extend at least 1.5km west of El Refugio in addition to the widespread alteration and rhyolitic dome intrusives in the Copalquin district. The drilling at the El Refugio target now extends for over 300m with highlights including  hole CDH-022 with 1.93 g/t Au and 124 g/t Ag (3.48 g/t AuEq) over 5.05m, including 3.28 g/t Au and 140 g/t Ag (5.03 g/t AuEq) over 2.15m; hole CDH-024 with 1.59 g/t Au and 37 g/t Ag (2.05 g/t AuEq) over 15.75m, including 3.27 g/t Au and 53 g/t Ag (3.93 g/t AuEq) over 5.93m, and  14.75 g/t Au and 150 g/t Ag (16.63 g/t AuEq) over 1m; and hole CDH-025 with 0.8 g/t Au and 34 g/t Ag (1.22 g/t AuEq) over 7m, including 1.81 g/t Au and 70 g/t Ag (2.68 g/t AuEq) over 2m (within 27.55m of 0.41 g/t Au and 20 g/t Ag, or 0.66 g/t AuEq).

ON MINING

  • Mexus Gold US, announced that leaching commenced at its 250,000 tonnes leach pad at its Santa Elena mine in Sonora. Mineralized material is under way and returning values of 0.32 to 0.42 g/t Au in solution. Flows are expected to reach 0.6 g/t Au in solution by December 16th. Mexus CEO added that gold production by year end should reach 225 Oz.
  • Santacruz Silver Mining Ltd., announced Q3, 2020 production and financial results from its Mexican operations. At Zimapan mine, Hidalgo, the company processed 164,846 tonnes to produce 920,985 Oz AgEq at a cash and AISC of USD $17.45 and USD $18.54 per Oz AgEq respectively. At the Rosario project, San Luis Potosi, it processed 11,794 tonnes to produce 56,693 Oz AgEq at cash and AISC of USD $34.13 and USD $42.07 per Oz AgEq respectively. Santacruz reported revenue of USD $9.44M, gross profit of USD $1.26M, a net loss of USD $163K, and an EBITDA of USD $12K.

ON FINANCING

  • No relevant information.

ON RESOURCES AND DEVELOPMENT

  • Capitan Mining Inc., released drill results from the first seven holes collared at its Peñoles project in Durango. Significant drill intercepts were encountered in holes 20-CARC-06 with 0.34 g/t Au over 111.30m, including 0.63 g/t Au over 45.7m; hole 20-CARC-05 with 0.41 g/t Au and 21 g/t Ag over 76.2m, including 0.68 g/t Au and 28 g/t Ag over 16.8m; hole 20-CARC-03 with 0.4 g/t Au and 11 g/t Ag over 68.6m, including 0.74 g/t Au and 16 g/t Ag over 16.8m;  and hole 20-CARC-02 with 0.4 g/t Au and 26 g/t Ag over 56m, including 0.53 g/t Au over 25.9m. The drill results expand the known gold mineralization reported in the mineral resource estimate released in March, 2015 within the conceptual, open pit shell, and confirm that there is significant room to expand the existing oxide resource.
  • Endeavour Silver Corp., intersected high grade gold-silver mineralization at its Bolañitos mine in Guanajuato. Highlights include the following intersections along the Melladito vein: 12.76 g/t Au and 55 g/t Ag (1,176 g/t AgEq) over a true width (TW) of 4.5m, including  43.5 g/t Au and 171 g/t Ag (3,651 g/t AgEq) over a TW of 0.4m in hole BN-58, and 0.51 g/t Au and 491 g/t Ag (531 g/t AgEq) over a TW of 2.7m, including 1.74 g/t Au and 2,220 g/t Ag (2,359 g/t AgEq) over a TW of 0.4m in hole BN-52. At San Bernabe Vein, hole BN-59 intersected 7.91 g/t Au and 12 g/t Ag (645 g/t AgEq) over a TW of 2.7m.
  • VanGold Mining Corp. reported results from 267 underground channel samples from its Pinguico mine in Guanajuato, with assays up to 1,136 g/t Ag.  Highlights include Pinguico Shaft with 15m  strike length of grade weighted average of 733 g/t Ag and 5 g/t Au (1,136 g/t AgEq); Pinguico Norte with 47m strike length of of 256 g/t Ag and 1.7 g/t Au (394 g/t AgEq); and San Jose NW Pillar  with 25m strike length of 154 g/t Ag and 1.9 g/t Au (303 g/t AgEq).

ON DEALS AND CORPORATE ISSUES

  • Almaden Minerals Ltd.,  announced that all the mining concessions which cover its Ixtaca project in Puebla are not affected by the denial of Almaden´s appeal noted in December 01, 2020 news release. A court decision upholded the original, 14,000 Ha larger concessions, which the Company originally held, confirming that Almaden owns 100% of the property.
  • Auxico Resources Canada Inc., announced the resignation of one of its directors and the appointment of a new member to its board of directors (Zamora property, Sinaloa).
  • Barksdale Resources Corp., announced that its common shares commenced to trade on the OTCQX best market in the USA under the symbols “BRKCF” (San Javier project, Sonora).
  • Defiance Silver Corp., announced that it has entered into an option agreement with Pan American Silver Corp., to acquire 100% interest in the Lucita property in Zacatecas. With this option agreement, Defiance expands its land package on the mining district from 1,600 Ha to 4,300 Ha. The option terms include an initial payment of USD $100K upon signing; USD $100K on or before the first year anniversary; USD $500K on or before the second year anniversary; and a final payment of USD $800K on or before the third year anniversary.
  • Fabled Silver Gold Corp., closed its previously announced acquisition of the Santa Maria mine in Chihuahua. In order to acquire 100% interest in the property, Fabled has to make an initial cash payment of USD $500K in cash and 1M common share on the closing date of the transaction, USD $1.5M in cash 12 month after the acquisition closing, USD $2M in cash 24 months after the closing date, and a total of USD $480K in payments due by the vendor to the optionors under the vendor´s agreement with those optionors as follow: USD $100K on the acquisition closing, USD $120K on 2/4/2021, USD $120K on 8/4/2021, and USD $140K on 2/4/2022. Fabled will also grant the Vendor a 1% NSR with respect to the property upon exercise of the option under the option agreement and will assume from the vendor the obligations in respect of an existing 2% NSR that exists over 3 of the 5 mineral claims that comprise the property.
  • Fortuna Silver Mines Inc., provided and update on the status on a dispute royalty on one of its extracting mining concessions at its San Jose mine in Oaxaca. “In January 2020, the company received notice from the Dirección General de Minas (DGM) seeking to cancel the mining concession if the royalty (MXP $30M + VAT from the period 2011-2019) was no paid before March 15, 2020. Fortuna began legal proceedings against the DGM on February 2020. The District Court in Mexico City admitted the company’s legal proceedings on March 2, 2020 and granted a permanent stay of execution, which protects the company from the cancellation of the concession until a final non-appealable resolution is reached on the legality of DGM’s cancellation procedure. On November 27, 2020 the District Court found that the Company suffered no harm from the notice of cancellation procedure and dismissed the proceedings without deciding on the merit of the Amparo Proceedings and on the validity of the royalty. The company’s legal position with respect to the disputed royalty remains unchanged. The company intends to vigorously defend its position and appeal the Procedural Finding and file an appeal with the Collegiate Court in Mexico by the deadline of December 14, 2020.  A decision of the Collegiate Court is expected during mid-2021”.
  • Magna Gold Corp., announced the change of its fiscal year-end from March 31 to December 31 to align the fiscal year-end of the company with that of its subsidiaries, Molimentales del Noroeste, S.A. de C.V., LM Mining, S.A. de C.V. and Minera Magna, S.A. de C.V., which are required to have fiscal periods for Mexican tax purposes ending on December 31. (San Francisco mine, Sonora). 
  • Orex Minerals Inc., announced management changes. The former CEO has resigned and Ben Whiting has been appointed as President and CEO and as Director of Orex immediately (Sandra-Escobar project, Durango).
  • Orla Mining Ltd., appointed a new member to its board of directors (Camino Rojo project, Zacatecas).
  • Prismo Metals Inc., announced that it has entered into an option agreement to acquire the remaining 25% interest in the Palos Verdes property in Sinaloa. The option gives Prismo control of 100% of the concessions that makes up the property. Under the terms of the option agreement, Prismo will make a cash payment of USD $250K to the optionor an aggregate of US$250K in cash over a four-year period, with the initial payment of USD $30K made on signing. Additionally, 100K warrants will be awarded, with each warrant entitling its owner to purchase one common share of the company at an exercise price of CAD $0.35 per share for two years from the date of execution of the option agreement.
  • Silver Spruce Resources Inc., signed a definitive agreement to acquire 50% interest in the Jackie property in Sonora by making a payment to Colibri for USD $250K and CAD $25K in common shares as the first property payment within 7 days of the TSX approval. Spruce also agrees to spend USD $100K in exploration and drilling expenses with a minimum of USD $50K within 12 months of TSX approval and to pay to Colibri a second payment of USD $25k and CAD $25K in common shares also within 12 months of TSX approval. Upon completion of this terms, Spruce will hold 50% interest in the property and a JV will be formed to direct all exploration and drilling expenses. There are no underlying royalties on the property.
  • Tarachi Gold Corp., announced the appointment of its new CFO and its Corporate Secretary (La Dura mine, Sonora).
  • Vizsla Resources Corp, appointed its new CFO (Panuco project, Sinaloa).

ON SOCIAL RESPONSIBILITY

  • The Sonora Mining Cluster recognized 40 partners for their commitment to Corporate Social Responsibility (CSR), during the closing of the MINNOVACIÓN 2020 Forum.
  • Fresnillo plc., donated 30,000 face mask to the Zacatecas State government to contribute to the authorities to mitigate the COVID-19 pandemic in the entity. The face mask delivered to the authorities are model L03, which have five layers of protection and comply with all security protocols. This action adds to the effort and commitment that the Mexican mining company has made since the beginning of the pandemic to work hand in hand with the community.
  • Newmont Corporation (Minera Peñasquito) delivered pantries and cleaning kits in localities of Mazapil as a service to the community.
  • The mining sector in Mexico has supported efforts to alleviate the effects of the COVID-19 pandemic. The mining industry in the state of Zacatecas has joined the efforts in the fight against the COVID-19 pandemic, and through different companies, such as Newmont, Fresnillo plc, Grupo Mexico, and Orla Mining, has supported many communities with the donation of medical equipment and ventilators. In total, 90,692 N95 masks have been delivered , 164 thousand 452 googles, more than one million 221 thousand masks, as well as 513 thousand 378 isolation gowns and 12 thousand 522 masks, according to the Mexican Chamber of Mexico (CAMIMEX).

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

On the picture above, quartz blade (boiling texture) in a low sulphidation epithermal vein system in a prospect in Durango, Mexico.  Photo by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the Fourth Week of November, 2020

By Jorge Cirett

During the 48th week of the year (November 23rd to November 29th, 2020), at least 22 press releases were announced by companies working in Mexico. To note, seven companies posted exploration advances on their properties and seven more published on project development. ON MEXICO ISSUES, Mining concessions surface has been reduced by 21% in this federal administration. Camimex delivered its “Cascos de Plata” awards. The COVID pandemic has accelerated the digital transformation in mining. ON EXPLORATION, in Sonora, Silver Viper informed on the status of exploration at its La Virginia project; Tarachi Gold released high-grade results from drilling at La Dura, on its Tarachi project. In Chihuahua, Reyna Silver has received drill permits for Guigui. In Sinaloa, GR Silver delineated a new mineralized zone at Plomosas; Brigadier Gold released high-grade results from the first holes at Picachos. Vizsla released assays from the first hole at the Agüita Zarca prospect in Panuco. In Puebla, Almaden Minerals reported on exploration of the SE zone at Ixtaca.  ON MINING, Impact Silver released third quarter financial results. Telson Mining began to send ore from Tahuehueto to a toll mill. ON FINANCING, Candente Gold closed a financing round raising $250 K. Alien Metals raised £2.5 M. ON RESOURCES AND DEVELOPMENT, Great Panther Mining updated the mineral resource estimate at its Guanajuato mine Complex. Minera Alamos has received the last significant permit to start plant construction at La Fortuna in Durango. Prime Mining mobilized the first rig to Los Reyes, Sinaloa. Sonoro Gold released results from 20 more drill holes at Cerro Caliche, Sonora. Premier Gold Mines reported results from delineation drilling at Mercedes, Sonora. Discovery Metals informed on drilling targeting bulk tonnage and high-grade veins at Cordero, Chihuahua. Orla Mining informed on the start of earth-moving activities at Camino Rojo, Zacatecas.  ON DEALS AND CORPORATE ISSUES, Candente gold is changing name to Xali Gold Corporation. Candelaria Mining sold a 0.5% royalty on production from Pinos, Zacatecas. ON SOCIAL RESPONSIBILITY, Peñoles and Fresnillo PLC informed on programs to aid communities near their operations. Newmont informed on a plan to achieve zero-emissions by 2050.

ON MEXICO ISSUES

  • The current federal government reduced by 21% the surface under mining concessions. This as a result of a strict review on the concessions current at the start of the federal administration, and the denial to issue new titles by the president.
  • Camimex (Cámara Minera de México) delivered the “Cascos de Plata” (Silver hard hats) awards to the six mining units with the best safety records in Mexico. The awards went to Agnico Eagle Mexico, Grupo Mexico’s La Caridad, America’s Gold & Silver Cosalá, Velardeña (Peñoles), Grupo Mexico’s Planta ESDE and Grupo Mexico’s Refinería Electrolítica de Zinc.
  • Mining companies state the COVID pandemic has accelerated the digital transformation and advanced automatization.

ON EXPLORATION

  • GR Silver Mining Ltd. Delineated a new mineralized zone, Yecora, from drilling in the San Juan area of its Plomosas project in Sinaloa. Highlighted results comprise 5.5 m @ 264 gpt Ag, 0.4 gpt Au, 0.3% Pb, 0.6% Zn; 19.0 m @ 49 gpt Ag, 1.8 gpt Au, 0.8% Pb, 1.4% Zn; 25.2 m @ 82 gpt Ag, 0.5 gpt Au, 0.9% Pb, 0.5% Zn; 3.2 m @ 27 gpt Ag, 0.3 gpt Au, 3.0% Pb, 11.4% Zn; 7.1 m @ 7.5% Zn, 2.4% Pb, 0.9 gpt Au; 3.3 m @ 11.3% Zn; 0.4 m @ 10.2 gpt Au, 2.1% Zn. “The San Juan Trend now extends for at least 2 km along strike, consisting of at least six mapped veins: San Juan, La Colorada, Yecora, Loma Dorada, La Odisea and San Francisco”.
  • Silver Viper Minerals Corp. informed on exploration at its La Virginia project in Sonora. The property was previously explored by Pan American Silver and Minefinders which sunk 188 drill holes for a total of 52,000 m of diamond drilling. Silver Viper acquired the project in 2018, starting by drilling gaps in the Las Huatas and Convirginia zones, and sunk five holes in a new area, El Rubi, where a new discovery was made in a zone with quartz veins, stockworks and breccias. In 2019 most work was a follow-up on El Rubi, with mapping and rock sampling, with a second drill campaign commencing by the end of that year that now has more than 15,000 m drilled. The company notes that hole LV20-245 (the last released, with 110 m @ 38 gpt Ag, 0.76 gpt Au) drilled 100 m west of El Rubi is a second discovery, showing the potential for open pit mining at the zone.
  • Reyna Silver Corp. has received drill permits for the Guigui project in Chihuahua. “The Guigui Project is located in the heart of the Santa Eulalia Mining District, home to Mexico’s largest Carbonate Replacement Deposit (CRD). The Santa Eulalia Mining District has produced 510 M Oz of silver, 4.2 MT of lead, 3.6 MT of zinc, at average grades of 310 g/t Ag, 8.2% Pb and 7.1% Zn.
  • Brigadier Gold Ltd. released results from the first three diamond holes of a 5,000 m program at its 3,954 hectares Picachos property on the Rosario district in Sinaloa. The 18th hole is being drilled, with the first 14 testing 225 m of strike length on the San Agustin vein and the rest now testing Los Tejones. Highlighted core length intercepts comprise 7 m @ 7.45 gpt Au, 51 gpt Ag (including 1 m @ 45.63 gpt Au); 1 m @ 1.33 gpt Au, 22 gpt Ag; 4.5 m @ 2.89 gpt Au, 50 gpt Ag (including 2 m @ 6.12 gpt Au, 52 gpt Ag); 2 m @ 2.71 gpt Au, 24 gpt Ag. Trench sampling returned 7 m @ 0.39 gpt Au, 53 gpt Ag; 1.5 m @ 7.53 gpt Au, 113 gpt Ag; 1.55 m @ 15.49 gpt Au, 109 gpt Ag (including 0.35 m @ 66.36 gpt Au, 99 gpt Ag); 1 m @ 3.21 gpt Au, 184 gpt Ag; 5 m @ 4.89 gpt Au, 67 gpt Ag.   
  • Tarachi Gold Corp. released results from underground diamond drill holes at La Dura mine on the Jabali concession of the Tarachi project in Sonora. Highlighted core length intercepts comprise 7.0 m @ 2.30 gpt Au; 14.5 m @ 5.49 gpt Au (including 7.0 m @ 9.67 gpt Au); 8.0 m @ 0.31 gpt Au; 20.1 m @ 4.54 gpt Au (including 10.0 m @ 7.48 gpt Au). Mineralization at La Dura is defined by a series of steeply dipping crackle brecciated quartz veins in dacitic volcanic rocks.
  • Vizsla Resources Corp. released results from the first hole drilled at the Agüita Zarca prospect of the Cordon de Oro vein at its Panuco project in Sinaloa. The drill hole intercepted core length intercepts of 18.15 m @ 118 gpt Ag, 3.71 Au (457 gpt AgEq), including 5.95 m @ 244 gpt Ag, 10.49 gpt Au (1,208 gpt AgEq). Directly above this intercept there is a trench channel sampling that returned 0.49 gpt Au, 161 gpt Ag (197 gpt AgEq).
  • Almaden Minerals Ltd. reported results from initial surface sampling of veins discovered in the Southeast Alteration Zone of the Ixtaca project in Puebla. These veins were discovered while mapping a clay alteration zone in volcanic rocks, and although not containing precious metals, show high values of trace elements for shallow epithermal systems.

ON MINING

  • Impact Silver Corp. released third quarter 2020 financial results. Average mill feed was 166 gpt Ag. “Silver production year to date 2020 was only down 4% compared to 2019 at 462,231 ounces despite the COVID-19 official shutdown required by Mexican government from April to June 2020”. Cash at the end of the period was $17.4 M.
  • Telson Mining Corp. has begun to send ore from its Tahuehueto project in Durango to the Atocha toll beneficiation plant. To date 3,000 tonnes have been delivered, of 3,500 tonnes on the current program. Telson informed that it is waiting for the final financing to finish the construction of a 1,000 tonnes per day plant at Tahuehueto.

ON FINANCING

  • Candente Gold Corp. closed the non-brokered private placement previously announced, raising a total of $200 K (El Oro, Estado de México).
  • Alien Metals Ltd. informed on the oversubscription of a financing placement that raised £2.5 M in gross proceeds.

ON RESOURCES AND DEVELOPMENT

  • Great Panther Mining Ltd.  updated the mineral resource estimate at its Guanajuato mine Complex, to July 31, 2020. The complex is comprised by the Guanajuato and San Ignacio underground mines and the 1,000 tpd Cata plant. The estimate includes 19,913 m of drilling in 199 holes since the previous resource calculation. The total resource comprises 821.8 K tonnes @ 199 gpt Ag, 2.07 gpt Au in the measured and indicated category and 1,453 K tonnes @ 185 gpt Ag, 2.25 gpt Au in the inferred category, containing 5.24 M Oz Ag, 54,693 Oz Au and 8.66 M Oz Ag, 105,219 Oz Au respectively. The company is working with permitting authorities to expand the capacity of the tailings storage facility, to extend operations beyond January 2021.
  • Minera Alamos Inc. informed the company has received the approval of the MIA (Manifestación de Impacto Ambiental or Environmental Impact Statement) from SEMARNAT for its La Fortuna project in Durango. The company possesses all the key federal approvals necessary for a 2,000 tonnes per day mine and plant construction.
  • Prime Mining Corp. has mobilized the first of at least two rigs for the incoming 10,000 m drill campaign at its Los Reyes project in Sinaloa. Furthermore, recent trench results were released, including 36 m @ 2.12 gpt Au, 19 gpt Ag; 9.0 m @ 0.43 gpt Au, 16 gpt Ag; 13.5 m @ 0.92 gpt Au, 31 gpt Ag; 33 m @ 1.47 gpt Au, 22 gpt Ag; 25.5 m @ 3.51 gpt Au, 32 gpt Ag; 51 m @ 1.37 gpt Au, 132 gpt Ag. Re-logging of core has found that adularia appears to be vertically zoned, which might aid in targeting high-grade zones.
  • Sonoro Gold Corp. reported results from 20 additional reverse circulation (RC) holes at its Cerro Caliche project in Sonora. Highlighted results comprise 45.72 m @ 0.97 gpt Au, 4 gpt Ag; 6.09 m @ 3.99 gpt Au, 9 gpt Ag; 1.52 m @ 7.80 gpt Au, 15 gpt Ag; 9.14 m @ 0.46 gpt Au, 12 gpt Ag; 10.67 m @ 0.96 gpt Au, 13 gpt Au; 13.72 m @ 0.30 gpt Au; 12.19 m @ 0.94 gpt Au, 3 gpt Ag; 1.52 m @ 2.26 gpt Au, 34 gpt Ag; 27.43 m @ 0.48 gpt Au, 1 gpt Ag; 16.76 m @ 0.33 gpt Au, 6 gpt Ag; 4.57 m @ 0.54 gpt Au, 6 gpt Ag; 9.15 m @ 0.54 gpt Au, 6 gpt Ag; 4.57 m @ 1.03 gpt Au, 6 gpt Ag; 1.52 m @ 2.64 gpt Au, 6 gpt Ag; 13.71 m @ 0.36 gpt Au; 19.81 m @ 0.57 gpt Au, 5 gpt Ag; 6.1 m @ 0.66 gpt Au, 6 gpt Ag; 6.1 m @ 0.46 gpt Au, 7 gpt Ag; 15.24 m @ 0.45 gpt Au, 3 gpt Ag.
  • Premier Gold Mines Ltd. reported on results from its delineation core drilling campaign at its Mercedes mine in Sonora. Highlighted true width results comprise 12.7 m @ 10.17 gpt Au, 294 gpt Ag; 8.1 m @ 7.49 gpt Au, 57 gpt Ag; 2.8 m @ 5.29 gpt Au, 30 gpt Ag at Marianas, 4.2 m @ 10.03 gpt Au, 119 gpt Ag; 2.3 m @ 5.31 gpt Au, 131 gpt Ag at San Martin and 10.2 m @ 7.12 gpt Au, 26 gpt Ag; 56.6 m @ 2.99 gpt Au, 12 gpt Ag (including 12.2 m @ 4.47 gpt Au, 21 gpt Ag); 14.2 m @ 4.86 gpt Au, 31 gpt Ag; 13.2 m @ 6.83 gpt Au, 27 gpt Ag at Diluvio stockwork zone. Marianas is the down plunge of the main Mercedes mine trend, composed of three main veins: Main, West and East. The San Martin vein was discovered by drilling in 2019, and Diluvio West consists of a vein stockwork system with a broad envelope.
  • Discovery Metals Corp. informed it has now completed 43,640 m of drilling in 111 holes as part of its expanded 55,000 m program at Cordero, Chihuahua. The focus has been on bulk tonnage targets and high-grade veins. Bulk tonnage targeting shifted from the North Corridor to the South Corridor, where broad zones of mineralization have been intercepted. On high-grade veins, the Todos Santos vein trend has been extended to 1.5 km, and the Porcinera vein to 350 m, both with high-grade intercepts.
  • Orla Mining Ltd. announced the start of earth moving activities at its Camino Rojo Oxide project in Zacatecas. “All permit conditions have been satisfied, including placing of an environmental bond, for site activities to begin. Major contracts for earth moving and civil works have been awarded and detailed engineering is 90% complete. Current activities include mobilization of the earthworks contractor, installation of the construction camp and offices, flora and fauna rescue, as well as site fence erection”.

ON DEALS AND CORPORATE ISSUES

  • Candente Gold Corp. announced the decision to change name to Xali Gold Corp.
  • Candelaria Mining Corp. sold a 0.5% NSR on production from the Pinos project, in Zacatecas, to Empress Royalty Corp. for US$750 K. Empress also purchased an additional 0.5% NSR from a previous royalty holder. The Pinos project is subject to NSR royalties of 2.0%.

ON SOCIAL RESPONSIBILITY

  • Industrias Peñoles is working along with the Teloloapan municipality museum, aiding with an augmented reality presentation in 3D of mining and metallurgic processes, that can be accessed in smart phones and tablets.
  • Fresnillo PLC reforested 7 hectares in Caborca and the surrounding communities during the last four years.
  • Newmont plans to reduce emission of CO2 by 30% and then achieve the zero-emissions target by 2050.

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

On the image below: Sulfide rich mantos in core from Cerro San Pedro, San Luis Potosí. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the Third Week of November, 2020.

Barite crystals

By Miguel A Heredia

During the forty eight week of the year (November 16th to November 22th, 2020), at least 29 press releases were announced by companies working in Mexico and 1 news published by the media, with eight reporting on resources and development of their mine operations, six disclosing deals and corporate issues, six informing on exploration results, four commenting on Mexican issues, three  communicating production and financial results, two announcing financial rounds, and one discussing social issues.  ON MEXICO ISSUES, Equinox announced that the community blockade at its Los Filos mine in Guerrero has been lifted and access to the mine has been restored. First Majestic announced its intention to appeal the Circuit Court decision to nullify the Advance Pricing Agreement concluded in 2012 between Primero Empresa Minera and the Mexican tax authority, Servicio de Administracion Tributaria (SAT). Deputies of the mining commission of the State Congress and the State Secretariat of Economy of Sonora will join forces to request to the Federal Government that the Mining Fund returns to the Municipalities of the State.   Great Panther has temporarily suspended the operations at its Topia mine in Durango due to the detection of COVID-19 among the workforce.  ON EXPLORATION, In Sonora, Canuc started a drone supported, high frequency, magnetic survey over its newly acquired claims at its San Javier project, Silver Tiger reported drill results from its El Tigre project, Colibri released results from the trenching sampling carried out at its Evelyn project, and Riverside and its JV partner Carlyle reported channel sampling results from its Cecilia project. In Jalisco, GoGold released drilling results from El favor target at its los Ricos North project. In the State of Mexico, Impact has commenced a trenching sampling at its Manto America gold target.  ON MINING, Excellon reported Q3, 2020 production and financial results from its Platosa mine in Durango.  Santacruz reported October 2020 production results from its Zimapan and Rosario mines in Hidalgo and San Luis Potosi respectively. Starcore reported Q2, 2020/2021 production results from its San Martin mine in Queretaro.  ON FINANCING, Magna Gold closed the acquisition of the Margarita Silver project in Chihuahua. Telson executed a Trust Agreement with Trafigura Mexico (Tahuehueto project, Durango).  ON RESOURCES AND DEVELOPMENT, Azucar resumed drilling at its El Cobre property in Veracruz.  Endeavour expanded its land position at its Terronera property in Jalisco. Elemental Royalties presented Q3, 2020 results from its Mercedes mine in Sonora. Mexus provided an update on its new heap leach pad at its Santa Elena mine in Sonora. Golden Minerals received the final environmental permit for its Rodeo property in Durango. Minera Alamos announced an independent NI 43-101 compliant mineral resource estimate of 630K Oz Au at its Cerro de Oro project in Zacatecas. Sierra Metals announced a significant increase of its mineral resource estimate at its Cusi mine in Chihuahua. SilverCrest announced new high-grade discovery at the Babi Vista Splay Vein within its Las Chispas project in Sonora. ON DEALS AND CORPORATE ISSUES, Aura announced a new and improved offtake agreement with Trafigura starting in 2022 (Aranzazu property, Zacatecas). Barksdale appointed its company Senior VP Project Development (San Javier project, Sonora).  Comet changed its provider for shareholder registry services from Advanced Share Registry Services to Automic Pty Ltd (Santa Teresa property, Baja California).  SilverCrest announced the appointment of a new member for its Board of Directors (Las Chispas project, Sonora). Starcore presented results from its annual general meeting of shareholders (San Martin mine, Queretaro).  Silver Dollar announced it has hired a Country Manager for its la Joya Silver project in Durango.   ON SOCIAL RESPONSIBILITY, Torex achieved 10M hours work without a lost time injury (El Limon-Guajes mine complex, Guerrero).

ON MEXICO ISSUES

  • Equinox Gold Corp., announced that the community blockade at its Los Filos mine in Guerrero has been lifted and access to the mine has been restored. Los Filos has commenced a staged restart and workers will resume their duties only after testing negative for COVID-19.
  • First Majestic Silver Corp., announced its intention to appeal the Circuit Court decision to nullify the Advance Pricing Agreement concluded in 2012 between Primero Empresa Minera SA de CV (PEM) and the Mexican tax authority, Servicio de Administracion Tributaria (SAT).   “The Federal Court’s decision directs SAT to re-examine the evidence and basis for the issuance of the APA with retroactive effect, for the following key reasons: (i) SAT’s errors in analyzing PEM’s request for the APA and the evidence provided in support of the request; and (ii) SAT’s failure to request from PEM certain additional information before issuing the APA. The Company’s legal advisors having now reviewed the written reasons continue to be of the view that the Federal Court’s decision is flawed both due to procedural irregularities and failure to address the relevant evidence and legal authorities. The Company intends to appeal the decision to the Circuit Courts by the December 1, 2020 deadline”.
  • Deputies of the mining commission of the State Congress and the State Secretariat of Economy will join forces to request to the Federal Government that the Mining Fund returns to the Municipalities of the Sonora State. The commission reported that the Federal Government has pending the contribution of MXP $1,500M corresponding to fiscal year 2019 to be exercised in fiscal year 2020 in works of high social impact in municipalities with mining activities. One of the deputies stated that the resources of the Mining Fund originated in the State of Sonora, must remain here, because it is a resource of Sonora and must be applied, definitely, to the needs of the State. Sonora ranks first in the country in the extraction of copper, gold, molybdenum, wollastonite, and graphite and second in silver, substances that are exploited by national and foreign companies with investments around the world.
  • Great Panther Mining Limited has temporarily suspended the operations at its Topia mine in Durango due to the detection of COVID-19 among the workforce.   A reduced workforce will remain on site to maintain essential activities for the duration of the voluntary suspension. The health and safety of employees, contractors, and host communities remains a priority.  The company will continue working closely with the local government and regional health authorities to ensure a safe restart of normal operations.

ON EXPLORATION

  • Canuc Resources Corporation, started a drone supported, high frequency, magnetic survey over the 800m in length and 80 m in width silver-bearing magnetite swarms that have been identified within, and proximal to the large silver-bearing breccia structures uncovered in July and August of this year and first reported in a press release dated September 22nd.   
  • Silver Tiger Metals Inc., reported drill results from its El Tigre project in Sonora, where the company is currently exploring with core drilling the Caleigh and Protectora Veins. The company has drilled ten holes and highlights include hole 163 on Protectora Vein with 1,782 g/t Ag and 3.56 g/t Au (2,049 g/t AgEq) over 0.5m, and a second intercept of 1,374 g/t Ag and 0.89 g/t Au (1,441 g/t AgEq) over 0.5m; hole 164 on Protectora Vein with 805 g/t Ag and 10.5 g/t Au (1,593 g/t AgEq) over 0.5m; hole 158 on Caleigh Vein with 815 g/t Ag and 4.09 g/t Au (1,122 g/t AgEq) over 0.7m; and hole 156 on Caleigh Vein with 752 g/t Ag and 7.09 g/t Au (1,284 g/t AgEq) over 0.3m.
  • Colibri Resource Corporation, released results from the trenching sampling carried out at its Evelyn project in Sonora.  Fifty six chip samples from 0.30 to 2.00m in length were taken from trenches at The Cerro Rojo, El Sahuaro, and the West Evelyn targets. Nine samples returned values greater than 1 g/t Au and a total of 16 samples returned values greater than 0.1 g/t Au, with a peak of 23.2 g/t Au at the Cerro Rojo target area. The trenching has defined a northwest-southeast mineralized trend over an approximate strike length of 35 metres with samples ranging from 0.304 g/t Au to 27.5 g/t Au.
  • Riverside Resources Inc and its JV partner Carlyle Commodities Corp., reported channel sampling results from its Cecilia project. Thirty six channel samples were collected from underground working as well as at surface over the San Jose target from brecciated and silicified rhyolite. Over 43% of the samples returned more than 0.2 g/t Au with a peak of 48.3 g/t Au over a width of 0.75m. Other significant results were 0.86 g/t Au over 1.7m; 0.78 g/t Au over  0.85m; 0.66 g/t Au over 1.6m; 0.66 g/t Au over 0.8m; and 0.56 g/t Au over 1.25m.
  • GoGold Resources Inc., released drilling results from El Favor target at its los Ricos North project in Jalisco. Significant drill intercepts were encountered in hole LRGF-20-005 with 0.11 g/t Au and 74 g/t Ag (1.10 g/t AuEq or 83 g/t AgEq) over 21m, including 0.23 g/t Au and 150 g/t Ag (2.23 g/t AuEq or 167 g/t AgEq) over 9.0m; hole LRGF-20-006 with 2 intercepts, one of 0.2 g/t Au and 96 g/t Ag (1.48 g/t AuEq or 111 g/t AgEq) over 12m, including 0.53 g/t Au and 271 g/t Ag (4.15 g/t AuEq or 311 g/t AgEq) over  3.4m, and 0.97 g/t Au and 113 g/t Ag (2.47 g/t AuEq or 186 g/t AgEq) over 27m, including 3.35 g/t Au and 350 g/t Ag (8.01 g/t AuEq or 601 g/t AgEq); hole LRGF-20-007 with 0.28 g/t Au and 160 g/t Ag (2.4 g/t AuEq or 180 g/t AgEq) over 11m, including 0.53 g/t Au and 291 g/t Ag (4.41 g/t AuEq or 331 g/t AgEq) over 3.5m; hole LRGF-20-008 with 0.69 g/t Au and 255 g/t Ag (4.08 g/t AuEq or 306 g/t AgEq) over 52.1m, including 0.93 g/t Au and 343 g/t Ag (5.51 g/t AuEq or 413 g/t AgEq) over 37.1m, including 5.62 g/t Au and 2,052 g/t Ag (32.98 g/t AuEq or 2,473 g/t AgEq) over 5m, including 8.47 g/t Au and 3,039 g/t Ag (49 g/t AuEq or 3,675 g/t AgEq) over 3.3m; and hole LRGF-20-009 with 2 intercepts, one of 0.43 g/t Au and 148 g/t Ag (2.41 g/t AuEq or 180 g/t AgEq) over 11.6m, including 1.22 g/t Au and 324 g/t Ag (5.55 g/t AuEq or 416 g/t AgEq) over 2.5m, and 0.32 g/t Au and 63 g/t Ag (1.15 g/t AuEq and 87 g/t AgEq) over 32.5m, including 0.64 g/t Au and 171 g/t Ag (2.93 g/t AuEq or 220 g/t AgEq) over 7m. The drilling program at El Favor target has tested 1,000m along strike of the historic El Favor vein and workings. These first nine drill holes have confirmed the wide zones of mineralization mapped and sampled on surface continue down dip for close to 600m. The company stated that the mineralization is open along strike in both directions and down dip and will aggressively advance this zone towards a mineral resource estimate.
  • Impact Silver Corp., has commenced a trenching sampling at its Manto America gold target in the State of Mexico. Thirty three rock chip samples returning more than 2 g/t Au have been collected on this target, with a peak of 19.5 g/t Au over a true width of 1.2m. Additionally, 67 soil samples taken on a 50m by 25m grid have returned an average of 250 ppb Au. The 900m trenching sampling plans to test an area of 450m by 300m over the strongest Au-in soil anomalies. Previous operators of this target excavated two trenches, the same that were sampled by Impact, returning 0.51 g/t Au over 5.6m in width  and  a length of 23.5m, and 0.3 g/t Au over 5.5m in width and a length of 17.2m.

ON MINING

  • Excellon Resources Inc., reported Q3 2020 production and financial results from its Platosa mine in Durango. The company mined 21,877 tonnes and processed 22,612 tonnes of 483 g/t Ag, 5.3% Pb, and 6.8% Zn, with metallurgical recoveries of 93%, 85% and 80.9% respectively. Excellon produced 326.9K Oz Ag, 2.23M Lb Pb, and 2.75M Lb Zn (or 524.3K Oz AgEq), and sold 310.3K Oz Ag, 2.18M Lb Pb, and 2.28M Lb Zn (or 485.8K Oz AgEq) at  a cash and AISC of USD $12.60 and USD $18.92 respectively per Oz Ag sold. The company reported revenues of USD $9.7M, gross profit of USD $2.5M, net working capital of USD $10.5M, and cash and marketable securities of USD $10.1M as at September 30, 2020.
  •  Santacruz Silver Mining Ltd., reported October 2020 production results from its Zimapan and Rosario mines in Hidalgo and San Luis Potosi respectively. At Zimapan mine in  Hidalgo, the company milled 62,543 tonnes of 81 g/t Ag, 0.8% Pb, 2.6% Zn, and 0.32% Cu to produce 114K Oz Ag, 983.3K Lb Pb, 2.45M Lb Zn, and 315.3K Lb Cu (or 363.7K Oz AgEq). At Rosario mine in San Luis Potosi, Santacruz milled 6,319 tonnes of 85 g/t Ag, 0.2 g/t Au, 0.4% Pb, and 1.5% Zn to produce 15.1K Oz Ag, 26 Oz Au, 52.9K Lb Pb, and 169.7K Lb Zn. 
  • Starcore International Mines Ltd., reported Q2, 2020/2021 production results from its San Martin mine in Queretaro. Starcore milled 56,731 tonnes of 1.6 g/t Au and 22 g/t Ag with metallurgical recoveries of 88.5% and 56.99% respectively to produce 2,867 Oz AuEq.

ON FINANCING

  • Magna Gold Corp., closed the acquisition of the Margarita Silver project in Chihuahua from Sable Resources Ltd and Exploraciones Sable S de RL de CV. Magna acquired the property by paying CAD $1.5M in cash plus an additional CAD $800K in cash representing Mexican VAT, and CAD $3.5M in common shares in the capital of Magna, being 3,219,278 Magna shares at a deemed price of CAD $1.0872 per Magna Share. Immediately following the acquisition, the Purchaser exercised the option to acquire the property by payment to the titleholders of the property of CAD $500K in cash, plus an additional $368K in cash representing Mexican VAT; and CAD $1.8M in Magna Shares, being 1,655,629 Magna Shares at the Issue Price. In addition, Magna will pay Osisko Gold Royalties Ltd  a 2% NSR on all products mined and produced from the Property.
  • Telson Mining Corporation executed a Trust Agreement with Trafigura Mexico. Under the terms, Trafigura waived all defaults plus deferred all principal and interest payments until June30, 2021, under certain terms and conditions, related to certain loan agreements entered into between the parties in late 2017.  Additionally, Telson agreed to place its assets into the Trust to guarantee full repayment of all outstanding financial obligations under the loan agreements with Trafigura. Telson has advanced its Tahuehueto construction plans and currently calculates a construction budget at approximately USD $13M, including a 15% contingency. Telson is contemplating to enter into a USD $12M medium term loan facility with Accendo Banco S.A. Institucion de Banca Multiple,  the possibility of a small silver stream metal purchase funding or conducting a private placement financing to supplement the Accendo loan for Tahuehueto construction, and to provide working capital.

ON RESOURCES AND DEVELOPMENT

  • Azucar Minerals Ltd., resumed drilling at its El Cobre property in Veracruz. The company is  first deepening hole EC-20-108, which is located at the Primo Zone, in an effort to further delineate resource potential at the project beyond that contained in the initial Norte Zone mineral resource estimate. The Primo Target was discovered in 2019 based on the hole EC-19-086 which intersected 0.4 g/t Au and 0.24% Cu over 200m, including 0.94 g/t Au and 0.56% Cu over 55.6m.
  • Endeavour Silver Corp., expanded its land position at its Terronera property in Jalisco to 20,128 hectares by acquiring two adjacent groups of mineral concessions called La Sanguijuela and Cerro Gordo. La Sanguijuela, which covers the possible NW extension of the Terronera Vein and the possible west extension of the Los Reyes Vein, comprises 2,759 hectares and Endeavour has an option to purchase it by USD $550K in a four years staged payments. The Los Cuates Vein is the main structure at la Sanguijuela and has been traced for over a length of 1.5km with thickness of 2 to 6m with values of 0.5 – 5 g/t Au and 50-300 g/t Ag. Cerro Gordo, which covers the possible southeast extension of four Terronera footwall veins (Pena Gorda-Canoas, Los Venados-La Carbonera, Pena Blanca-El Alacran and El Mirador-Los Tablones) as well as three other veins (El Maguey-El Madrono, Monte Obscuro-Musgos and La Muda-Monte Grande), was acquired by staking 2,200 hectares. The El Maguey-El Madrono vein has been observed over a length of 1.6 km with a thickness of 2 to 4 m, carrying values of 0.6 to 2 g/t Au and 10-30 g/t Ag.  The Pena Gorda-Canoas vein outcrops over a length of 1.7 km with a thickness of 2 to 5 m, returning values up to 0.5 g/t Au and 40 g/t Ag. Vein systems in these two properties have never been drilled and Endeavour plans to test some portion during Q4, 2020.
  • Elemental Royalties Corp., presented Q3, 2020 results from its Mercedes mine in Sonora. The company announced that Mercedes mine was placed on care and maintenance following a decree from the Mexican Federal Government on March 30. 2020 in which listed mining operations as non-essential industry, and restarted activities on July, 2020 following a two-month suspension. Mining activities were focused with a reduce staff on higher grades and are concentrated on the Diluvio-Lupita-San Martin system while also implementing continued exploration, underground development and mill maintenance programs with the intention of returning to full production in due course.
  • Mexus Gold US provided an update on its new heap leach pad at its Santa Elena mine in Sonora. It has completed phase 1 of its new 250K tonnes pad which is expandable to 1M tonnes, and will have crush mineralized material averaging 2.7 g/t Au. Mexus is looking for a return of 0.6 g/t Au in solution. In addition, Mexus is scheduled to begin blasthole drilling to expand its open pit 2 by approximately 1,741 Oz Au at a grade of 2.7 g/t Au.
  • Golden Minerals Company received the final environmental permit for its Rodeo gold-silver property in Durango, which is scheduled to begin gold production in January 2021, delivering mineralized material at its Velardeña mill to process it immediately.   “The Velardeña plant is a typical agitated leach plant rated to handle up to 450 tonnes per day of throughput from Rodeo. It is equipped with a Merrill Crowe circuit and a modern doré refinery, and the attached tailings facility was recently expanded and is expected to be sufficient for the tailings produced from Rodeo’s operations”.
  • Minera Alamos Inc., announced an independent NI43-101 compliant inferred mineral resource estimate of 630K Oz Au at its Cerro de Oro project in Zacatecas. The inferred mineral resource was prepared using an economic pit shell at a gold price of USD $1,450 per Oz and contains 630K Oz of oxide gold mineralization from 48M tonnes of 0.41 g/t Au.  Minera Alamos has also identified a number of high priority targets with potential to expand resources at Cerro de Oro, as well as a limited number of diamond drill holes which have demonstrated the potential for sulphide mineralization to extend to depth below the current estimate area.
  • Sierra Metals Inc., announced a significant increase of its mineral resource estimate at its Cusi mine in Chihuahua. The company increased 18% the measured and indicated resources from 4,557,000 tonnes to 5,356,000 tonnes, and 200% the inferred resources from 1,633,000 tonnes to 4,893,000 tonnes. The updated mineral resource estimate include measured + indicated resources of  5,356,000 tonnes of 182 g/t Ag, 0.12 g/t Au, 0.5% Pb, and 0.6% Zn (215 g/t AgEq) for a total of 31.26M Oz Ag, 20.22K Oz Au, 58.26M Lb Pb, and 67.99M Lb Zn (37M Oz AgEq), and Inferred resources of 4,893,000 tonnes of 146 g/t Ag, 0.18 g/t Au, 0.43% Pb, and 0.69% Zn (183 g/t AgEq) for a total of 23M Oz Ag, 27.7K Oz Au, 46M Lb Pb, and 74.81M Lb Zn (28.82M Oz AgEq).
  • SilverCrest Metals Inc., announced new high-grade discovery at the Babi Vista Splay Vein within its Las Chispas project in Sonora as a result of an in-fill drilling program at the northwestern extension of the Babi Vista Vein. Twenty four holes have been collared at this target with a high grade footprint of approximately 300m along strike and average height of 175m. Weighted average results are 74.27 g/t Au and 3,437 g/t Ag (9,071 g/t AgEq) over a true width of 1.6m. The most significant drill intercept was encountered in hole BV20-201 with 555.36 g/t Au and 19,453 g/t Ag (61,105 g/t AgEq) over a true width of 2.4m. This discovery at Babi Vista Splay Vein will be included as inferred resources for the upcoming resource estimation in the ongoing PFS study.

ON DEALS AND CORPORATE ISSUES

  • Aura Minerals Inc., announced a new and improved offtake agreement with Trafigura Mexico S.A. de C.V., starting in 2022. The new agreement, in which Trafigura has agreed to purchase 100% of the copper and gold concentrate produced at Aranzazu mine in Zacatecas,  is effective as of the beginning of 2022 and continues until the end of 2024.
  • Barksdale Resources Corp., appointed its company Senior VP of project Development. Its role will be overseeing the advancement of the Company’s project portfolio, including the San Javier copper-gold project in Sonora, Mexico. In connection with this appointment, Barksdale has granted a stock option to purchase 250K common shares, exercisable at $0.68 per share over a three-year period. 
  • Comet Resources Limited, changed its provider for shareholder registry services from Advanced Share Registry Services to Automic Pty Ltd (Santa Teresa property, Baja California).
  • SilverCrest Metals Inc., announced the appointment of a new member for its board of directors (Las Chispas project, Sonora).
  • Starcore International Mines Ltd., presented results from its annual general meeting of shareholders (San Martin mine, Queretaro).  
  • Silver Dollar Resources Inc., announced it has hired a Country Manager to work alongside the company at its la Joya Silver project in Durango.

ON SOCIAL RESPONSIBILITY

  • Torex Gold Resources Inc., achieved 10M hours work without a lost time injury (El Limon-Guajes mine complex, Guerrero).

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, barite crystals from a low-intermediate sulphidation epithermal system in a prospect in Chihuahua, Mexico.  Photo by Miguel A Heredia.