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The Mining and Exploration News in Mexico: Highlights on the Second Week of March 2024

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By Jorge Cirett                                             

During the 11th week of the year (March 11th to March 17th, 2024), companies working in Mexico posted at least 26 press releases. Three companies reported on exploration at its properties while three more released results for the last quarter/full-year. Four companies announced financing rounds for a total of C$7.8 M, one is delisting from one Stock Exchange and listing in another one, another is extending its warrants expiry date and one more is granting stock options. One company informed on work at its advanced property. One company obtained a hard-sought community authorization for exploration activities, while one other is stopping activities in Mexico. A company announced an appointment to the board and one more the optioning of a property. One company is to process third-party material at its mill, one is cancelling an option and its related financing round and one more is updating on its legal action against the Mexican government. ON MEXICO ISSUES, a couple of judicial resolutions set the application of the new mining law on hold. The anti-mining stance by the federal government is bearing fruit, pushing mining investment out of the country. ON EXPLORATION, in Sonora, Colibri Resource updated on work at its EP project. In Chihuahua, Kootenay Silver is to drill at Columba. In Durango, Silver Dollar is re-evaluating the Nora project. ON FINANCING, three companies informed on the opening or closing of financing rounds: Regency Silver (C$250 K), Reyna Silver (C$3.2 M), Defiance Silver (C$2.6 M) Guanajuato Silver granted options to directors, management and consultants. Pantera Silver is to extend the expiry date of warrants. Almaden Minerals is to change its listing stock exchange. ON RESOURCES AND DEVELOPMENT, Atacama Copper started drilling at Cristina, in Chihuahua, focusing on high-grade resources. ON DEALS AND CORPORATE ISSUES, USAntimony is closing operations in Mexico. Vortex Metal obtained community exploration approbation. Sonoro Gold announced an appointment to the board. Riverside Resources and Fortuna Silver signed an option agreement on the Cecilia project, in Sonora.  CMC Metals dropped the option on the Gavilanes project and the concurrent financing round on lack of exploration permit. Guanajuato Silver Company signed a new third-party processing agreement. Almaden Minerals and Almadex Minerals updated on its request for consultation under the CPTPP.  ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • According to the newspaper La Jornada a judge upheld a partial suspension on the reforms to the mining law, specifically on the article that disposes all mining concession applications not yet titled. First Majestic Silver promoted the appeal on grounds of unconstitutionality.
  • The Poder Judicial Federal suspended multiple parts of the reform to the Mining Law of last May 2023, as these are likely unconstitutional. By Mid-April the Supreme Court has to discuss if the reforms are invalidated because of violations to the legislative process, although the project on the Mining Law still has to be included on the minute. Some points addressed in the reform include the reduction from 50 to 30 years of duration of the concession, auctioning of mining concessions, community consultation and retribution and water use limitations among others.
  • The Mexican government mining policies are bearing fruit. The Mining Law changes of last year (likely to be soon rejected by the Supreme Court), the reluctance by the environmental agency (SEMARNAT) to reauthorize mining permits, the lack of permits for open pit mining, the unwillingness to end illegal blockades and the general anti-mining stance of the current federal government are working as expected, deterring mining investment and pushing the more disadvantaged players, junior foreign companies, out of the country. Just this week USAntimony is closing operations in Mexico, CMC Metals is bailing out of a deal to option a property because of SEMARNAT’s failure to extend an exploration permit and Almaden Minerals informed on the international proceedings regarding its Ixtaca project in Puebla. Those companies are adding to the likes of Fortune Silver, Argonaut Gold, Riverside Resources and Golden Minerals, among others, that have made public during this quarter their reassessment of continuing operations in Mexico or have current arbitration cases, like Silver Bull Resources on its Sierra Mojada project in Coahuila. How much this scenery is to change depends on when/if the Mining Law changes are repealed and the open pit mining ban scraped.

ON EXPLORATION

  • Silver Dollar Resources Inc. commenced its re-evaluation of the Nora property in Durango during last February, with the collection of 72 surface samples on the East, West and South anomalies, as well as from the main Candy structure. Rock samples on the Candy structure attempt to replicate the results from the previous operator, and will be reported when received.
  • Colibri Resource Corp. updated on exploration activities at its EP Gold project in Sonora. Work includes an airborne magnetic survey covering 1,385 ha at a height of 35 m and a 50 m spacing between flight lines. Similar equipment and survey parameters with previous surveys allowed for the combination of the datasets. Geological mapping completed on selected areas with 64 rock samples collected as well as 23 rocks for thin section petrography. Interpretation of geological, geochemical and geophysical surveys highlighted the importance of north-northeast trending structures, and the recognition of easterly trending ones. Colibri has identified 14 target areas, prioritizing four of these for drilling.
  • Kootenay Silver Inc. announced the initiation of the Q1 diamond drill program at Columba, in Chihuahua. The program envisages 15 to 17 holes for 5,000 m designed to expand upon previous intercepts along the D-Vein target. “The current drilling program is designed to extend the D-Vein in preparation of a follow up program of likely 15,000 meters, aimed to delineate a maiden resource expected in late 2024 which is dependent on additional drilling beyond the 5000 meter program and the financing it requires.”

ON MINING

  • Endeavour Silver Corp. announced financial and operating results for Q4 and full-year 2023. During the year the company produced 5.7 M Oz Ag, 37,858 Oz Au, or 8.7 M Oz AgEq, for a total revenue of $205 M, $37 M in operating cash flow before working capital changes and net income of $6.1 M. Consolidated cash cost net of by-product credits was $13.49 per Oz Ag, and an AISC of $22.93 per Oz Ag, impacted by higher costs. During the year Bolañitos in Guanajuato processed 441 K tonnes to produce 537.5 K Oz Ag, while Guanaceví in Durango processed 433.4 K tonnes to produce 5.09 M Oz Ag. Construction of the Terronera mine in Jalisco continues on schedule. Cash position of $35.3 M and $42.5 M in working capital.
  • SilverCrest Metals Inc. released financial results for Q4 and year 2023. During the year Las Chispas mine in Sonora mined 300.9 K tonnes, processed 431.4 K tonnes at a rate of 877 tpd, with ore averaging 4.39 gpt Au, 423 gpt Ag (or 771 gpt AgEq), recovering 98.1% Au, 96.5% Ag, to produce 59,700 Oz Au, 5.65 M Oz Ag (or 10.4 M Oz AgEq) at cash cost $7.73 per Oz AgEq. In 2023 the company completed 13.2 km of horizontal and vertical underground development. During the year SilverCrest generated $116.7 M in net earnings and free cash flow was $121.1 M, holding cash and cash equivalents of $86 M by the end of the year.
  • Gold Resource Corp. announced full-year operational results from its Don David Gold Mine in Oaxaca. During Q4 2023 the mine milled 111.2 K tonnes @ 1.44 gpt Au, 85 gpt Ag, 0.39% Cu, 1.39% Pb, 2.95% Zn to produce 4,077 Oz Au, 282.5 K Oz Ag, 341 Cu tonnes, 1,072 Pb tonnes, 2,884 Zn tonnes in the quarter, adding up to 18,534 Oz Au, 1.04 M Oz Ag (31,085 Oz AuEq). For 2024 the guidance is to produce 13,000 to 15,000 Oz Au, 1.25 to 1.4 M Oz Ag, (29,500 to 31,500 Oz AuEq) at cash cost $1,450 to $1,650 per Oz AuEq. Negotiations during Q4 2023 reduced royalties from 5% to 3% on the La Tehuana, El Aguila, and Mina El Aire mining concessions.

ON FINANCING

  • Regency Silver Corp. closed further $253 K of a previously announced non-brokered placement of $800 K. The company also granted stock options to acquire 1.7 M of common shares to directors, officers, employees and consultants (Dios Padre, Sonora).
  • Pantera Silvera Corp. applied to extend the expiry date of 11.8 M share purchase warrants to March 11, 2025 (Nuevo Taxco, Guerrero).
  • Reyna Silver Corp. increased the size of its non-brokered listed issuer financing exemption (“LIFE”) announced on Feb 14, 2024, and its previously announced concurrent non-brokered private placement. The amended LIFE offering is to raise up to $3.2 M (Guigui, Chihuahua).
  • Almaden Minerals Ltd. informed that because of the low price of its share (due to the dispute with the Mexican government. – See below) the company will voluntarily delist from the NYSE and parallelly seek a listing on the OTCQB Marketplace (Ixtaca, Puebla).
  • Defiance Silver Corp. closed the final tranche of its previously announced non-brokered private placement for aggregate gross proceeds of C$2.6 M. Windermere Capital Fund SPC – Breakaway Strategic Resource SP, an insider of the company purchased C$1.2 M in shares, taking its ownership to a total of 41.5 M common shares and 3.05 M warrants. (Zacatecas, Zacatecas).
  • Guanajuato Silver Company Ltd. granted stock options and restricted share units to select officers, directors, employees and consultants (El Cubo, Guanajuato).
  • Sierra Madre Gold and Silver Ltd. upsized and closed its previously announced non-brokered private placement financing raising total gross proceeds of $1 M (La Guitarra, Estado de Mexico).

ON RESOURCES AND DEVELOPMENT

  • Atacama Copper Corp. started a 10,000 m diamond drilling campaign at its Cristina project in Chihuahua. “The Cristina project consists of multiple outcropping quartz veins that are frequently greater than 10 metre in width and extend for a currently known strike length of up to five kilometres. At least four parallel mineralized vein zones have been mapped and sampled to date”. Epithermal to mesothermal mineralization is known to occur over 1,100 m of vertical range, hosted by andesitic volcanic rocks of the Lower Volcanic Group and locally covered by Upper Volcanic Group rhyolitic rocks. Current open pit constrained resources are centered on the Guadalupe vein, comprising 752 K Oz AuEq in indicated resources and 777 K Oz AuEq in inferred resources. Atacama is trying to define an underground higher-grade resource.

ON DEALS AND CORPORATE ISSUES

  • United States Antimony Corp. announced plans to discontinue all Latin America operational activities and close its US Antimony Mexico, S.A. de C.V. (USAMSA) subsidiary, terminating the majority of its employees on March 11, 2024, immediately. “The Company intends to possibly sell or lease its USAMSA entity, operations, or assets over the next year and has initiated an active search for buyers or leasing opportunities of its operations and/or existing assets.” United States Antimony will continue to hold its existing Los Juarez mining claims in Queretaro. The reasons stated to close include high operating costs, new stringent Mexican mining laws, safety concerns, and the inability to collect back taxes from the Mexican government.
  • Vortex Metals Inc. announced the authorization by the Santiago Astata Agrarian Community to Vortex to carry on mineral exploration activities, including drilling, at its Zaachila project in Oaxaca. “Furthermore, the company has committed to forming an environmental monitoring committee with active community participation to oversee the activities and ensure environmental protection throughout the exploration program”.
  • Sonoro Gold Corp. appointed Katherine Reagan to the board of directors, in addition to her position of vice president of corporate development and corporate secretary (Cerro Caliche, Sonora).
  • Riverside Resources Inc. signed an option agreement with Fortuna Silver on Riverside’s Cecilia project in Sonora. The option term agreement envisages 5 years to earn 51% by spending US3.75 M, delivery of $150 K in cash payments and at least $500 K spent on work in the first year. Fortuna paid Riverside the initial $25 K on signing, and is to pay $25 K on filing of the agreement in Mexico, and further $25 K per year, with Riverside acting as operator charging a 10% management fee on top of work spending. Upon earning 51%, Fortuna may earn 80% by spending an additional $2.25 M in work over 3 years. After earning 80%, Fortuna might elect within 120 days to pay Riverside $5 M cash and grant Riverside a 2% NSR where 1% NSR may be purchased for $3 M, with Fortuna earning 100% in the project. The low sulfidation Au-Ag epithermal mineralization is associated to at least two nested dome complexes in sedimentary rocks.
  • CMC Metals Ltd. announced the cancellation of the $1.2 M private placement previously announced due to the failure, of the property owner of the Ag-Au Gavilanes project in Durango, to achieve an extension of the exploration permit with SEMARNAT (Mexico’s environmental Agency). “CMC has subsequently served notice of its intent to terminate the agreement with Sailfish Royalty Corp. to acquire the Gavilanes project but remains interested in securing exclusivity rights until October 2024.” The company intends to focus on its flagship Silverknife property in British Columbia.
  • Guanajuato Silver Company Ltd. announced the signing of a new third-party processing agreement with REM Marfil S.A. de C.V., a local Guanajuato based company. Under the agreement mineralized material from the past producing La Providencia mine is to be processed at the El Cubo and Cata processing facilities in Guanajuato. “The Agreement covers the processing of an initial 80,000 dry metric tonnes of mineralized material with a minimum head grade of 0.43 grams per tonne gold and 192 grams per tonne silver.”
  • Almaden Minerals Ltd. and Almadex Minerals Ltd. updated on its Request for Consultation delivered to the Mexican government in December 2023 according to the Comprehensive and Progressive Agreement of for Trans-Pacific Partnership (CPTPP). The Mexican government acknowledged receipt but never proposed dates for a consultation meeting. On March 14, 2024, Almaden delivered to Mexico written notice of its intention to submit a claim to arbitration under the CPTPP. “The damages relating to the Almaden and Almadex Claim will be for no less than US$200 million, in the aggregate. The Notice enables the Company to initiate arbitration should an amicable resolution of the dispute with the Mexican government not be reached.”

ON SOCIAL RESPONSIBILITY

  • No Relevant News.

On the image below: Specularite-quartz matrix breccia in a project in the Sonoran Desert. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the Third Week of January 2024

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By Jorge Cirett                                             

During the 3rd week of the year (January 15th to January 21st, 2024), companies working in Mexico posted at least 25 news releases. Three companies reported exploration advances on their properties, eight companies released production results and one more announced it is now processing material from a third party at its installations. Two companies announced financing rounds, one paid back a fair amount of debt and made the final installment of a layback agreement. One company is arranging convertible debt financing and one other closed a debt settlement with shares and informed on debt restructuring. Three companies updated on work at its advanced properties. One company updated on 2023 work and plans for 2024, another announced a favorable resolution of issues relating to its mining claims and one more on the intention to spin its royalty company to its shareholders. ON MEXICO ISSUES, the president of the Colegio de Ingenieros de Minas, Metalurgistas y Geólogos de México informed on the detrimental aspects brought by the new mining law. ON EXPLORATION, in Sonora, Aztec Silver informed on RC drilling results from its Cervantes project. Colibri contracted an air mag survey for El Plomo in Sonora. In Oaxaca, Vortex Metals updated on work in 2023 and plans for 2024 at its Zaachila and Riqueza Marina projects. ON MINING, Orla Mining, First Majestic Silver, Bear Creek Mining, Avino Silver, Torex Gold, Pan American Silver, Argonaut Gold and Fortuna Silver reported production results for Q4 and full-year 2023. Guanajuato Silver Company is to process material from a Mexican company at its El Cubo mill. ON FINANCING, Orla Mining repaid $25 M of debt and the final $22.8 M installment of the Layback agreement to Fresnillo plc. GoldGroup Mining is to arrange a convertible debt financing for US$400 K. GR Silver is to undertake a private placement for up to $1.5 M. Regency Silver completed the first tranche of a private placement expected to raise $800 K. Luca Mining informed on the restructuring of debts with service providers and clients.  ON RESOURCES AND DEVELOPMENT, Defiance Silver released results from drilling at San Acacio, in Zacatecas. Impact Silver informed on drill intercepts from its Plomosas mine in Chihuahua. Orla Mining confirmed gold oxide mineralization on the Fresnillo plc property and on structures channelling deep oxidation beneath the planned pit at Camino Rojo in Zacatecas. ON DEALS AND CORPORATE ISSUES, Riverside Resources updated on 2023 work and plans for 2024 on three properties in Sonora. Silver Valley announced a favorable resolution with the government on its Mexi-Can Sulphate of Potash and Lithium project in Zacatecas. Prime Mining announced a new CEO appointment. Vizsla Silver is to spin out the shares of Vizsla Silver Royalties to its shareholders.  ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • Raúl García Reimbert, president of the Colegio de Ingenieros de Minas, Metalurgistas y Geólogos de México, stated that according to INEGI (Mexican bureau of statistics), the services related to mining fell by 26.2% in November 2023. Mineral exploration for new projects is practically paralyzed after five years of a no-concessions policy by the actual presidential administration and last year’s mining reforms. The reform poised the SGM as the only entity to explore for new projects that later are to be auctioned, but no budget was allocated for the deed. He also added that “there is no work, staff is laid off, sales of services related to drill bits, exploration supplies, lab technicians, geologists, surveyors, etc.”   

ON EXPLORATION

  • Vortex Metals Inc. provided a summary of 2023 achievements and unveiled its strategy for 2024. In 2023 Vortex completed environmental assessments on its Zaachila and Riqueza Marina projects in Oaxaca, which will be the basis for the reports to be submitted to SEMERNAT (Mexican environmental bureau). “At Riqueza Marina, Vortex completed extensive geological work at the Rhyolite Dome area and, on the copper-rich gossans to the east and west. A total of six trenches measuring 188 meters and yielding 117 rock chip samples were completed”. In 2024 Vortex will continue to engage with the local communities to develop a strong social license that will enable the advance in exploration and potential discovery of a new Cu-Au volcanogenic massive sulfide (VMS) belt in Oaxaca.
  • Aztec Minerals Corp. released initial gold results from three reverse circulation drill holes at its Cervantes project in Sonora. The RC drill program was designed to expand the California gold mineralization in multiple directions. Highlighted drill length intervals comprise 7.6 m @ 0.274 gpt Au; 13.68 m @ 0.338 gpt Au; 30.4 m @ 1.035 gpt Au (including 1.52 m @ 13.8 gpt Au). “Aztec plans to carry out reconnaissance and channel sampling and geologic mapping of the new drill roads at California, and other targets”.
  • Colibri Resource Corp. contracted Geo Digital Imaging de Mexico, S.A. de C.V. to complete a 1,373-hectare HD magnetic survey covering the main targets at El Plomo claims on its EP project in Sonora. The drone aerial survey comprises 312 line-km on 81 lines at 50-m separation and 8 tie-lines at 500-m separation. The survey characteristics are the same that were applied on the adjacent Evelyn target, therefore the blending of the two surveys is expected to be seamless.

ON MINING

  • Orla Mining Ltd. provided an operational update for the fourth quarter of 2023. During the period the company mined 1.86 M tonnes of ore and 802.8 tonnes of waste, for a strip rate of 0.43, stacking 1.75 M tonnes at a rate of 18,998 tpd grading 0.73 gpt Au to produce 34,484 Oz Au. For the full year Camino Rojo produced 121,877 Oz Au. For 2024 the guidance is 110 to 120 K Oz Au production from the Camino Rojo Oxide operation, at cash cost of $625 to $725 per Oz Au and an AISC of $875 to $975 per Oz Au. Nearly half of the $23M Exploration budget in Mexico is to continue exploration activities “on the new discovery below the Camino Rojo sulphide deposit”.
  • First Majestic Silver Corp. announced a total production from its mines in Mexico of 6.6 M AgEq Oz Ag for the fourth quarter of 2023. During the period the company produced 2.61 M Oz Ag, 46,585 Oz Au that add up to 10.25 M Oz Ag, 198,921 Oz Au in the year, or 26.9 M Oz AgEq. Also, during the quarter twelve rigs worked at San Dimas (Durango) and four in Santa Elena (Sonora). At La Encantada, efforts are being made to find more water sources for the plant, as an extended drought is pressing production. For 2024 First Majestic production guidance contemplates 150-167 K Oz Au, 8.6-9.6 M Oz Ag, or 21.1-23.5 M Oz AgEq. At cash cost $13.69-$14.46 per Oz AgEq and an AISC of $19.32-20.68 per Oz AgEq. The company is planning 188,500 m of drilling, with 95,000 m at San Dimas, 59,000 m at Santa Elena and 9,500 m at La Encantada (the rest out of Mexico).
  • Bear Creek Mining Corp. released production figures for the fourth quarter of 2023. At Mercedes, in Sonora, 135,918 tonnes were processed in the period, grading 3.30 gpt Au, recovering 93.6% Au, to produce 13,478 Oz Au, 52.1 K Oz Ag, adding up to 43,860 Oz Au, 167 K Oz Ag in 2023. This quarterly production represents a 47% increase on the previous period and reflects the higher grades mined and increased working faces. Reduction of gold and silver streams of 78% were reached/obtained in the period, improving cash flow.
  • Avino Silver & Gold Mines Ltd. reported Q4 and full year 2023 production results. For the full year the company produced 2.41 M Oz AgEq at its Avino mine in Durango. During the fourth quarter 143.8 K tonnes @ 56 gpt Ag, 0.45 gpt Au, 0.49% Cu were processed, recovering 87% Ag, 70% Au, 84% Ag, to produce 224.7 K Oz Ag, 1,452 Oz Au, 1.32 M Lb Cu, or 558.5 K Oz AgEq. Also, in the quarter a long-term land use agreement was signed on the neighboring La Preciosa project, the prefeasibility study (PFS) on the Oxide Tailings Project in Avino is nearing completion and the dry stacking facility has been fully operational for a year.
  • Torex Gold Resources Inc. provided 2024 operational guidance and a five-year production outlook for the Morelos Complex in Guerrero, which includes the ELG Mine Complex and Media Luna project. For 2024 the company set a guidance of 410 to 460 K Oz AuEq with total cash cost of $900 to $950 per Oz AuEq and an AISC of $1,130 to $1,190 per Oz AuEq. “The mine plan for 2024 includes a full year of production scheduled from ELG, with the open pits starting to wind down mid-year and ELG Underground maintaining consistent levels of production throughout the year. Ore production from Media Luna starts inQ2 and continues to ramp up thereafter”. The five-year production outlook envisages 410 to 460 K Oz AuEq (2024), 425 to 475 K Oz AuEq (2025), 425 to 475 K Oz AuEq (2026), 450 to 500 K Oz AuEq (2027) and 350 to 400 K Oz AuEq (2028). The drilling budget include $15 M for the Media Luna Cluster, $12 M for ELG Underground and $3 M for the Morelos district. Torex has hedged 158 K Oz Au for the year at an average price of $1,972 per Oz.
  • Guanajuato Silver Company Ltd. commenced a relationship with a Mexican mining company “to process a portion of its surface inventory of mineralized material” at Guanajuato Silver’s El Cubo mines complex in Guanajuato. This agreement will utilize excess capacity of El Cubo mill with material that has demonstrated compatible with the processing circuit through comprehensive metallurgical testing.
  • Pan American Silver Corp. reported preliminary production results for Q4 and full-year 2023, including figures from its Mexican operations. At La Colorada, in Zacatecas, 806 K Oz Ag, 400 Oz Au were produced in Q4 2023, completing 4.4 M Oz Ag, 2,300 Oz Au in the year. At Dolores, in Chihuahua, 477 K Oz Ag, 25,400 Oz Au were produced in Q4 to complete 2.2 M Oz Ag, 107,100 Oz Au in the year. For 2024 the production forecast is of 5.3 to 5.7 M Oz Ag, 2,000 Oz Au at La Colorada, at cash cost $11.70 to $14.10 per Oz AgEq and an AISC of $16.00 to $18.50 per Oz AgEq. For Dolores the guidance is of 1.9 to 2.2 M Oz Ag, 65,000 to 75,000 Oz Au at $1,165 to $1,260 per Oz AuEq and an AISC of $1,475 to 1,575 Oz AuEq. Dolores. At La Colorada a 30% improvement in production is expected upon completion of a new ventilation system by mid 2024. At Dolores mining and staking on the heap are expected to conclude on Q3 2024, and then enter into the reclamation phase, with residual leaching for a few years.
  • Argonaut Gold Inc . announced fourth quarter and full year 2023 production results, including figures from its Mexican operations. The company has three mining units: La Colorada in Sonora, and El Castillo and San Agustín in Durango, where 90,247 Oz Au were produced in the year.
  • Fortuna Silver Mines Inc.  reported production results for the fourth quarter and full year 2023, including figures from its operations in Mexico. At the San José mine in Oaxaca, 241 K tonnes were milled at an average rate of 2,678 tpd, averaging 145 gpt Ag, 0.91 gpt Au, recovering 90.8% Ag, 89.6% Au, to produce 1.02 M Oz Ag, 6,345 Oz Au during the Q4. For the full year, San José produced 4.66 M Oz Ag, 28,559 Oz Au. For 2024 the guidance is to produce 3.1 to 3.6 M Oz Ag, 19 to 23 K Oz Au at cash cost $20.3 to $22.3 per Oz AgEq and an AISC of $22.8 to $24.0 per Oz AgEq. Driven by high costs and declining grade, the company is scheduled to exhaust mineral reserves by the end of 2024 and “to review and update a multiyear progressive mine closure and monitoring plan” with a current budget of $27 M.

ON FINANCING

  • Orla Mining Ltd. repaid $25 M towards its revolving credit facility, reducing the balance to $88.4 M. Orla also paid the final $22.8 M installment to Fresnillo plc as part of the layback agreement. At December 31, 2023 Orla had a cash position of $96.6 M and a total debt position of $88.4 M, resulting in a net cash position of $8.2 M (Camino Rojo, Zacatecas).
  • Silver Storm Mining Ltd. is to make a presentation at the 2024 Vancouver Resource Investor Conference on January 21, 2024 (La Parrilla, Durango).
  • GoldGroup Mining Inc. is in the process of arranging convertible debt financing of up to US$400 K of which US$100 K have already been received. “The Convertible Debts will be unsecured, bear interest at 12% per annum, will be repayable 18 (eighteen) months post-closing and will be convertible into common shares of the Company at CAD $0.10 per share at a fixed FX rate of 0.76 USD to CAD at the election of the lender(s)” (Cerro Prieto, Sonora).
  • GR Silver Mining Ltd. proposes to undertake a non-brokered private placement of up to $1.5 M (Plomosas, Sinaloa).
  • Regency Silver Corp. completed the first tranche of $622 K on a previously announced non-brokered private placement of $800 K. “The balance of the private placement is expected to close shortly” (Dios Padre, Sonora).
  • Luca Mining Corp. received a conditional TSX Venture Exchange approval and closed a debt restructuring and debt transaction previously announced. The company closed its debt settlement with Latapi Consultores S.A. de C.V., issuing 17.75 M shares to settle an outstanding debt of CAD$11 M. Luca Mining also completed its debt restructuring with Trafigura Mexico S.A. de C.V. and its affiliate Union Holdings Ltd., converting a US$5.8 M outstanding loan into a non-interest three-year term convertible debenture. Trafigura has also advanced an additional US$2.5 M loan to assist the company in completing the mine optimization program to deliver separate clean copper, zinc and lead concentrates to Trafigura with higher grades and recoveries (Campo Morado, Guerrero).

ON RESOURCES AND DEVELOPMENT

  • Defiance Silver Corp. released results from the 2023 drilling campaign at its San Acacio property in Zacatecas. The drilling demonstrated in-situ vein material remains in place at shallow levels of the mine. Highlighted core length intervals comprise 12.82 m @ 0.36 gpt Au, 223 gpt Ag, 0.2% Pb, 0.4% Zn; 32.32 m @ 0.20 gpt Au, 120 gpt Ag, 0.06% Cu, 0.4% Pb, 1.4% Zn (including 18.91 m @ 0.18 gpt Au, 166 gpt Ag, 0.1% Pb, 0.5% Zn and 6.39 m @ 0.18 gpt Au, 81 gpt Ag, 0.26% Cu, 1.7% Pb, 4.6% Zn); 33.76 m @ 0.31 gpt Au, 105 gpt Ag, 0.07% Cu, 1.0% Pb, 1.8% Zn (including 15.02 m @ 0.60 gpt Au, 162 gpt Ag, 0.14% Cu, 2.1% Pb, 2.5% Zn, which includes 4.47 m @ 0.75 gpt Au, 265 gpt Ag, 0.31% Cu, 5.1% Pb, 3.3% Zn). According to Defiance, the increasing copper grades and the presence of semi-massive to massive sulfide mineralization near surface is encouraging, as Capstone Mining is operating the Cozamin copper mine approximately 3 km away.
  • Impact Silver Corp. announced results from drilling at its Plomosas mine in Chihuahua. Initial drill results from the Tres Amigos section of the mine confirmed high-grade mineralization in the Juarez horizon, near accessible mine workings. Highlighted true width intervals comprise 1.29 m @ 18.2% Zn; 5.70 m @ 23 gpt Ag, 5.3% Pb, 7.9% Zn; 1.50 m @ 64 gpt Ag, 3.1% Pb, 11.9% Zn; 3.77 m @ 19 gpt Ag, 0.8% Pb, 5.0% Zn; 2.40 m @ 17 gpt Ag, 0.4% Pb, 6.0% Zn; 1.50 m @ 12 gpt Ag, 12.4% Pb, 3.3% Zn; 9.24 m @ 6 gpt Ag, 0.4% Pb, 4.0% Zn (including 1.98 m @ 13 gpt Ag, 1.4% Pb, 9.1% Zn, and 1.85m @ 13 gpt Ag, 0.7% Pb, 8.7% Zn); 2.70 m @ 35 gpt Ag, 9.2% Pb, 11.1% Zn; 6.90 m @ 28 gpt Ag, 5.4% Pb, 10.2% Zn; 3.60 m @ 50 gpt Ag, 2.1% Pb, 10.9% Zn.
  • Orla Mining Ltd. completed 6,500 m of diamond drilling at its Camino Rojo Oxide mine in Zacatecas. This near-pit exploration included 2,500 m to confirm oxide mineralization on the Fresnillo plc property (Layback area) north of the pit and 4,000 m of drilling targeting structures controlling deeper levels of oxidation beyond the currently designed pit. Highlighted core length intervals comprise 76 m @ 0.85 gpt Au (including 28 m @ 1.28 gpt Au and 10.27 m @ 1.27 gpt Au); 67 m @ 0.48 gpt Au; 73.5 m @ 0.37 gpt Au; 21 m @ 1.09 gpt Au; 18.7 m @ 1.06 gpt Au (including 4 m @ 4.06 gpt Au); 22.5 m @ 0.92 gpt Au; 67.1 m @ 1.16 gpt Au; 65.1 m @ 0.86 gpt Au; 63 m @ 0.63 gpt Au; 41 m @ 0.49 gpt Au; 21 m @ 0.87 gpt Au.

ON DEALS AND CORPORATE ISSUES

  • Riverside Resources Inc. updated on 2023 work and its outlook for 2024. In Mexico the company is preparing drilling permits to maintain good standing of the properties located in Sonora. On the Ariel porphyry copper property, consolidation of land and proper titling are positioning the company for potential JV’s. At the Union mine, assays of up to 1 Oz Au and 30% of Zn highlight the potential for further expansion. At Cecilia, a large dome complex has already yielded significant intercepts on previous drilling.
  • Silver Valley Metals Corp. announced a favorable resolution of issues relating to its Mexi-Can sulphate of potash and lithium project in Zacatecas. The company reported a favorable ruling regarding two amparos (constitutional appeals) on the effect of the New Mining Law. Also, the government operator of lithium mining, Litio Mx, declined to participate on the development of the Mexi-Can project and Silver Valley is poised to recommence exploration activities.
  • Prime Mining Corp. announced that CEO Daniel Kunz is retiring and Mr. Scott Hicks, EVP, will succeed him (Los Reyes, Sinaloa).
  • Vizsla Silver Corp. intends to spin out the shares of Vizsla Silver Royalties Corp., a wholly owned subsidiary of Vizsla Silver, to the company’s shareholders. The royalty consists of a 2.0% net smelter return (NSR) on certain unencumbered concessions on the Panuco project in Sinaloa, and a 0.5% NSR on certain encumbered concessions on the same project which have a pre-existing 3.0% NSR. “Pursuant to the Spinout, common shares of Vizsla Royalties would be distributed to shareholders of Vizsla Silver. Vizsla Silver is expected to hold approximately a 49% ownership interest in Vizsla Royalties, with the remaining shares of Vizsla Royalties being distributed to shareholders of Vizsla Silver on a pro-rata basis at a time to be determined by the board of directors of Vizsla Silver”.
  • Alamos Gold Inc. is to release fourth quarter and full-year 2023 results after February 21, 2024 (Mulatos, Sonora).

ON SOCIAL RESPONSIBILITY

  • No Relevant News.

On the image below: Specularite-quartz breccia vein on a project of the Sonoran Desert. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the Second Week of December, 2023

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hydrothermal breccia with hematite-rich matrix

By Miguel A Heredia

During the 50th week of the year (December 11th to December 17th, 2023), at least 20 press releases were announced by companies working in Mexico, and 1 news published by the media, with seven reporting resources and developments, six disclosing deals and corporate issues, three announcing financing issues, three commenting on Mexican issues, one communicating production results, and one informing on exploration results. ON MEXICO ISSUES, Personnel from the Attorney General’s Office of the State of Coahuila announced that they will begin the search and recovery process for the bodies of the 10 miners who were trapped in the El Pinabete coal mine on August 3, 2022, located in Sabinas, Coahuila. Almaden announced that it delivered to the Mexican government a request for consultations in accordance with the comprehensive and progressive agreement for Trans-Pacific Partnership relating to an investment dispute with Mexico. Gold Resource, Vizsla Silver, Prime Mining, and Kootenay Silver reported the best drilling intercepts in Mexico on the second week of December, 2023. ON EXPLORATION, In Baja California Sur, King announced that the letter of intent (Oct 18, 2023) to acquire 50% of the Las Misiones project in Baja California Sur has lapsed and the Company will not be pursuing the project  at this time. ON MINING, Guanajuato Silver reported Mid-Q4, 2023 production results from their Mexican operations. ON FINANCING Argonaut closed its previously announced CAD $85M bought deal public offering (El Castillo mine, Durango). Heliostar completed its previously announced warrant exercise incentive program for gross proceeds of $5,274,463.20 (Ana Paula property, Guerrero).  Tocvan closed the second tranche of its previously announced non-brokered private placement for gross proceeds of $306,150 (Pilar project, Sonora). ON RESOURCES AND DEVELOPMENT, Fortuna Silver provided an exploration update on its San Jose mine, Oaxaca. Gold Resource reported the results of one of its recent step-out drill holes at Don David mine, Oaxaca.  Tocvan released trench channel sample results from its Pilar project, Sonora. Prime reported expansion drill results from its ongoing 60,000m 2023 drilling program at its Los Reyes project, Sinaloa. Vizsla released results from 15 holes from its flagship Panuco project, Sinaloa. Kootenay announced results from the last two holes of the 2023 drill program at its Columba project, Chihuahua. Minera Alamos announced that it filed on SEDAR an independent Technical Report and estimate of the Mineral Resource for its Santana mine in Sonora. ON DEALS AND CORPORATE ISSUES, Coeur appointed a new member to its Board of Directors (Palmarejo mine, Chihuahua). Defiance reported results of its annual general meeting of shareholders (San Acacio project, Zacatecas). Heliostar announced management changes and additions to its Board (Ana Paula project, Guerrero). Monumental appointed a new member to its Board of Directors (Jemi HREE project, Coahuila). Minera Alamos reported results from its annual general meeting of shareholders (Santana mine, Sonora). Almaden granted stock options to Directors, officers, and Employees of the company (San Pedro project, Jalisco). ON SOCIAL RESPONSIBILITY, No relevant news.

ON MEXICO ISSUE

  • Personnel from the Attorney General’s Office of the State of Coahuila announced that they will begin the search and recovery process for the bodies of the 10 miners who were trapped in the El Pinabete coal mine on August 3, 2022, located in Sabinas, Coahuila. Almost 500 days after the tragedy that cost the lives of 10 miners, the personnel responsible for the search and recovery tasks safely reached the galleries of the El Pinabete mine.
  • Almaden Minerals Ltd., announced that it delivered to the Mexican government a request for consultations in accordance with the comprehensive and progressive agreement for Trans-Pacific Partnership (CPTTP) relating to an investment dispute with Mexico. “The investment dispute arises out of certain acts and omissions of Mexico in breach of the CPTPP relating to the Company’s investment in the Ixtaca Gold-Silver Project. The Company has suffered substantial harm arising out of Mexico’s conduct in breach of its investment protection obligations under the CPTPP, including (without limitation):  the Mexican Ministry of Economy’s (Economia) declaration that the Project’s mineral titles were void; Economia’s reassessment of the original applications for the mineral titles holding them to be deficient and unfeasible, contradicting the position previously adopted by it, and violating the Company and its subsidiary’s right to amend or supplement the mineral title applications; and the Mexican Secretariat of Environment and Natural Resources’ (Secretaría del Medio Ambiente y Recursos Naturales, SEMARNAT) delay in issuance and ultimate refusal to issue the Project’s environmental permit (Manifiesto de Impacto Ambiental)”. The Company confirms that it is taking all necessary actions to preserve its rights and protect its investments in Mexico.
  • Gold Resource Corporation, Vizsla Silver Corp., Prime Mining Corp., and Kootenay Silver Inc., reported their best drilling intercepts in Mexico on the third week of November, 2023. Details are shown in the table below:

ON EXPLORATION

  • King Global Ventures Inc., announced that the letter of intent (Oct 18, 2023) to acquire 50% of the Las Misiones project in Baja California Sur has lapsed and the Company will not be pursuing the project  at this time.

ON MINING

  • Guanajuato Silver Company Ltd., reported Mid-Q4, 2023 production results from their Mexican operations. Results from October to the end of November are shown by mine in the table below:

ON FINANCING

  • Argonaut Gold Inc., closed its previously announced bought deal public offering of 223,685,000 common shares of the company at a price of CAD $0.38 for gross proceeds of CAD $85M. Part of the gross proceeds will be used for working capital purposes (El Castillo mine, Durango).
  • Heliostar Metals Ltd., completed its previously announced warrant exercise incentive program. A total of 17,581,544 common shares in the capital of the company were issued upon the exercise of 17,581,544 previously outstanding share purchase warrants, providing aggregate gross proceeds of $5,274,463.20 to the company. The proceeds of the incentive program will be used for exploration and development of the Ana Paula Project and for working capital purposes.  
  • Tocvan Ventures Corp., closed the second tranche of its previously announced non-brokered private placement. It consisted of the issuance of an aggregate of 680,333 units at a price of $0.45 per unit, for gross proceeds of $306,150. The proceeds of the raise will go towards the advancement of the Pilar Au-Ag project in Sonora.

ON RESOURCES AND DEVELOPMENT

  • Fortuna Silver Mines Inc., provided an exploration update on its San Jose mine, Oaxaca. It reported results from the drilling program at Jessi Vein. Drilling highlights (true widths reported) include holes SJOM-1357 with 1.8 g/t Au and 60 g/t Ag (204 g/t AgEq) over 7.1m; hole SJOM-1366A with 1.58 g/t Au and 195 g/t Ag (321 g/t AgEq) over 0.2m, plus 0.78 g/t Au and 91 g/t Ag (153 g/t AgEq) over 1.5m, plus 0.75 g/t Au and 102 g/t Ag (162 g/t AgEq) over 0.4m, plus 0.70 g/t Au and 96 g/t Ag (152 g/t AgEq) over 0.4m, plus 1.22 g/t Au and 161 g/t Ag (258 g/t AgEq) over 1m; hole SJO-1417 with 4.61 g/t Au and 489 g/t Ag (858 g/t AgEq) over 0.5m, plus 1.40 g/t Au and 140 g/t Ag (252 g/t AgEq) over 0.6m; hole SJOM-1418 with 1.13 g/t Au and 95 g/t Ag (185 g/t AgEq) over 0.8m; hole SJOM-1428 with 2.48 g/t Au and 347 g/t Ag (545 g/t AgEq) over 17m, including  6.26 g/t Au and 620 g/t Ag (1,121 g/t AgEq) over 0.4m, plus 1.98 g/t Au and 307 g/t Ag (465 g/t AgEq) over 0.3m, plus 11.27 g/t Au and 1,344 g/t Ag (2,246 g/t AgEq) over 0.5m, plus 11.07 g/t Au and 1,137 g/t Ag (2,023 g/t AgEq) over 0.5m, plus 2.5 g/t Au and 314 g/t Ag (514 g/t AgEq) over 0.3m, plus 9.42 g/t Au and 774 g/t Ag (1,528 g/t AgEq) over 0.2m, plus 32 g/t Au and 5,905 g/t Ag (8,465 g/t AgEq) over 0.5m; hole SJO-1430 with 0.61 g/t Au and 84 g/t Ag (133 g/t AgEq) over 0.9m, plus 8.26 g/t Au and 770 g/t Ag (1,431 g/t AgEq) over 1.1m, plus 0.7 g/t Au and 90 g/t Ag (146 g/t AgEq) over 1.7m, plus 1.25 g/t Au and 150 g/t Ag (250 g/t AgEq) over 4m, plus 2.11 g/t Au and 170 g/t Ag (339 g/t AgEq) over 0.3m; and hole SJO-1431 with 5.38 g/t Au and 576 g/t Ag (1,006 g/t AgEq) over 0.3m, plus 1.02 g/t Au and 114 g/t Ag (195 g/t AgEq) over 5.2m, including 7.16 g/t Au and 838 g/t Ag (1,411 g/t AgEq) over 0.2m, plus 1.18 g/t Au and 146 g/t Ag (240 g/t AgEq) over 0.2m, plus 1.45 g/t Au and 147 g/t Ag (263 g/t AgEq) over 0.4m, plus 1.29 g/t Au and 136 g/t Ag (239 g/t AgEq) over 0.3m
  • Gold Resource Corporation reported the results of one of its recent step-out drill holes at Don David mine, Oaxaca. This program will consist of 34,000m in 150 holes. Assays detail of hole 523136 are shown in the table below:

“The exceptional width and grade appears to occur at the confluence of two veins (Sandy 1 and Sandy 2) that are part of the Gloria and Three sisters vein arrays in the upper portion of the Mine, located approximately 250 meters below surface”.

  • Tocvan Ventures Corp., released channel sample results from four trenches cut at its Pilar project, Sonora. Highlights include TR-2023-02 with 1.87 g/t Au and 9 g/t Ag over 22m; and TR-2023-03 with 1.88 g/t Au and 8 g/t Ag over 14m, including 3.65 g/t Au and 17 g/t Ag over 6m.
  • Prime Mining Corp., reported expansion drill results from its ongoing 60,000m 2023 drilling program at its Los Reyes project, Sinaloa. The company drilled 10 holes at Central-Noche Buena Area and 3 holes at Central-San Miguel East Area. At Central-Noche Buena Area, drilling highlights (true widths reported) include holes 23NB-51 with 3.36 g/t Au and 12 g/t Ag (3.51 g/t AuEq) over 4.97m, including 2.70 g/t Au and 409 g/t Ag (8 g/t AuEq) over 2.56m; hole 23NB-53 with 1.62 g/t Au and 169 g/t Ag (3.81 g/t AuEq) over 2.56m, including 2.77 g/t Au and 420 g/t Ag (8.21 g/t AuEq) over 0.97m, plus 0.27 g/t Au and 81 g/t Ag (1.32 g/t AuEq) over 3.28m, plus 0.42 g/t Au and 65 g/t Ag (1.26 g/t AuEq) over 7.49m; and hole 23NB-52 with 0.45 g/t Au and 60 g/t Ag (1.23 g/t AuEq) over 8.40m, including 1.25 g/t Au and 155 g/t Ag (3.25 g/t AuEq) over 1.55m. At Central-San Miguel East Area, drilling highlights include holes 23SME-37 with 0.55 g/t Au and 60 g/t Ag (1.33 g/t AuEq) over 4.40m, including 2.03 g/t Au and 48 g/t Ag (2.65 g/t AuEq) over 0.65m; and hole 23SME-34 with 0.99 g/t Au and 96 g/t Ag (2.23 g/t AuEq) over 1.40m, including 0.79 g/t Au and 4 g/t Ag (0.85 g/t AuEq) over 5.85m.
  • Vizsla Silver Corp., released results from 15 holes from its flagship Panuco project, Sinaloa, targeting La Luisa Vein located about 700m west of the Napoleon Area resource. Drilling highlights (true widths reported)  include holes NP-23-419 with 58 g/t Ag, 7.74 g/t Au, 0.7% Pb, and 1.4% Zn (650 g/t AgEq) over 3.25m, 50 g/t Ag, 16.74 g/t Au, 0.3% Pb, and 1% Zn (1,220 g/t AgEq) over 0.62m; hole NP-23-397 with 32 g/t Ag, 1.44 g/t Au, 0.2% Pb, and 2.5% Zn (221 g/t AgEq) over 8.70m, including 77 g/t Ag, 6.55 g/t Au, 0.5% Pb, and 1.3% Zn (577 g/t AgEq) over 1.26m, plus 137 g/t Ag, 1.77 g/t Au, 0.4% Pb, and 5.4% Zn (455 g/t AgEq) over 3.55m, including 408 g/t Ag, 2.64 g/t Au, 0.3% Pb, and 18.2% Zn (1,228 g/t AgEq) over 0.70m; hole NP-23-420 with 95 g/t Ag, 6.97 g/t Au, 0.1% Pb, and 0.2% Zn (568 g/t AgEq) over 2.8m, including 116 g/t Ag, 11.5 g/t Au, 0.05% Pb, and 0.07% Zn (888 g/t AgEq) over 1.90; and hole NP-23-401 with 191 g/t Ag, 0.27 g/t Au, 0.04% Pb, and 0.5% Zn (214 g/t AgEq) over 0.90m, plus 386 g/t Ag, 1.43 g/t Au, 0.9% Pb, and 1.7% Zn (542 g/t AgEq) over 1.35m. “Recently completed shallow drilling has confirmed the northern continuation of the Luisa structure, expanding its potential strike-length to 1,670 metres”.  
  • Kootenay Silver Inc., announced results from the last two holes of the 2023 drill program at its Columba project, Chihuahua, which consisted of 12 holes for a total of 3,052.8m designed to extend known mineralization on the “D Vein” target area. Selected highlights for drill hole CDH-23-146 include 501 g/t Ag, 0.3% Pb, and 0.7%Zn over 10.26m, including 2,123 g/t Ag, 1.3% Pb, and 2.2% Zn over 1.54m, including 4,120 g/t Ag, 3.4% Pb, 2.8% Zn over 0.54m. Selected highlights for drill hole CDH-23-147 include 532 g/t Ag, 0.2% Pb, and 0.7% Zn over 8.19m, including 914 g/t Ag, 0.3% Pb, and 0.7% Zn over 1m, plus 777 g/t Ag, 0.6% Pb, and o.7% Zn over 1m. “The current drilling program is designed to extend the D-Vein in preparation of a wider spaced follow up program aimed to delineate a maiden resource expected in late 2024”.
  • Minera Alamos Inc., announced that it filed on SEDAR the results of the independent Technical Report and estimate of the Mineral Resource for its Santana mine in Sonora.

ON DEALS AND CORPORATE ISSUES

  • Coeur Mining Inc., appointed a new member to its Board of Directors (Palmarejo mine, Chihuahua).
  • Defiance Silver Corp., reported results of its annual general meeting of shareholders (San Acacio project, Zacatecas).
  • Heliostar Metals Limited announced management changes and additions to its Board. The company appointed to its non-executive director with immediately effect to its Board of Directors, and Mr. Charles Funk will add the title and role of President to his current title and responsibilities as Chief Executive Officer (Ana Paula project, Guerrero).
  • Monumental Energy Corp., appointed a new member to its Board of Directors (Jemi HREE project, Coahuila).
  • Minera Alamos Inc., reported results from its annual general meeting of shareholders (Santana mine, Sonora).
  • Almadex Minerals Ltd., granted stock options to Directors, officers, and Employees of the company to purchase an aggregate 1,075,000 common shares in the capital of the Company at an exercise price of $0.21 per share expiring on July 10th, 2028 (San Pedro project, Jalisco).

ON SOCIAL RESPONSIBILITY

  • No relevant news.

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

On the picture above, hydrothermal breccia with hematite-rich matrix in an epithermal vein system in a project in Zacatecas, Mexico. Photo by Miguel A Heredia.