#Corporate Issues

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

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

ON MEXICO ISSUES

  • No relevant news.

ON EXPLORATION

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

ON MINING

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

ON FINANCING

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

ON RESOURCES AND DEVELOPMENT

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

ON DEALS AND CORPORATE ISSUES

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

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

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

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

/ Gambusino Prospector / Leave a comment

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

ON MEXICO ISSUES

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

ON EXPLORATION

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

ON MINING

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

ON FINANCING

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

ON RESOURCES AND DEVELOPMENT

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

ON DEALS AND CORPORATE ISSUES

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

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

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

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

/ Gambusino Prospector / Leave a comment

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

ON MEXICO ISSUES

  • No Relevant News.

ON EXPLORATION

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

ON MINING

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

ON FINANCING

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

ON RESOURCES AND DEVELOPMENT

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

ON DEALS AND CORPORATE ISSUES

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

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

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

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

/ Gambusino Prospector / Leave a comment

During the 28th week of the year (July 10th to July 16th, 2017), with the reporting of second quarter reports, at least 21 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, no relevant news. ON EXPLORATION, in Sonora Pan American Silver is drilling La Negra. In Sinaloa Santana released drilling results from Cuitaboca. In Durango Southern Silver released more assays from drilling at Cerro Las Minitas. In Chihuahua Harvest Gold updated its exploration effort at Cerro Cascaron., and In Veracruz Mexican Gold has awarded a ground magnetic survey on its Las Minas project.  ON MINING, First Majestic, McEwen Mining, Fortuna Silver, Great Panther, Cozamin and Endeavour Silver presented production results for the second quarter of 2017. Excellon achieved dry mining conditions at Platosa.  ON FINANCING, Silver Bull completed the first tranche of a private placement, raising CDN$1.46 M, while Silver Spruce raised $166.5 K. ON RESOURCES AND DEVELOPMENT, Leagold presented results from 20 holes on the Bermejal underground deposit. ON DEALS AND CORPORATE ISSUES, Alset acquired five more salars in Zacatecas and Leagold received approbation from government’s agency COFECE respect financing in connection with the Los Filos mine purchase.

ON MEXICO ISSUES

  • No Relevant News.

ON EXPLORATION

  • Kootenay Silver Inc. informed that Pan American Silver Corp. commenced a drill program on La Negra, a silver discovery within its Promontorio project in Sonora. The program will total over 4,000 meters of core drilling over 25 holes, focusing in infill drilling and step out holes to depth.
  • Santana Minerals Ltd. reported the remainder assay results for the recently completed RC drill program at the Mojardina prospect within its Cuitaboca project in Sinaloa. Highlights comprise 6 m @ 100 g/t Ag, and 12 m @ 148 g/t Ag in one hole; 32 m @ 104 g/t Ag and 5 m @ 93 g/t Ag in other hole; 12 m @ 118 g/t Ag; 5 m @ 121 g/t Ag. A new zone of mineralization was identified at the south end of the structure and mineralization remains open at depth and along strike below Evangelina and Las Animas.
  • Southern Silver Exploration Corp. reported further assay results deeper on the hole previously reported with copper enrichment (32.8 m @ 105 g/t Ag, 0.9% Cu) at its Cerro Las Minitas project in Durango. The new intercepts include 1.8 m @ 406 g/t Ag, 3.8% Cu, 0.6% Pb, 0.6% Zn; 8.1 m @ 49 g/t Ag, 1.2% Cu. “The entire mineralized interval occurs within a broad zone of veined sulphides and breccia that extend into the skarn-altered margin of the central intrusion and is significant in that it represents the thickest zone of higher grade mineralization hosted within the monzonite identified to date. The interval is strongly copper enriched (up to 3.7% over 4.8 metres) and may represent a transition into a mineralized endoskarn which remains open down-dip and along strike to the northeast.”
  • Harvest Gold Corp. provided an update on exploration at its Cerro Cascaron project in Chihuahua. In the Main Cerro Cascaron vein Field a low to intermediate sulfidation epithermal system includes 14 veins 70 to 1,980 m in length (over 11 km cumulative length), where some good intervals sampled include 1.3 m @ 12 g/t Au, 54 g/t Ag; 0.9 m @ 10.5 g/t Au, 46 g/t Ag; 1.4 m @ 5.6 g/t Au, 45 g/t Ag; 5.4 m @ 2.1 g/t Au, 14 g/t Ag; 6.3 m @ 2.1 g/t Au, 29 g/t Ag. The 200 m by 300 m Stockwork area presents multiple sub-parallel structures and breccias cutting the lower part of the rhyolite sequence. La Reyna/El Rico Veins are tourmaline rich silver and base metals veins and breccias where grab samples have returned up to 1.8 g/t Au, 516 g/t Ag. At La Prieta target tourmaline and quartz in a hydrothermal breccia returned 0.56 to 39.7 g/t Au in four samples. The Divisadero Veins are in the largest alteration zone, with limited sampling returning 0.1 to 599 g/t Ag, and locally up to 9.2 g/t Au. At La Cascarita intermediate sulfidation veins and breccias up to 3 m in width have been traced for over 150 m and are still open to the NE and SE. initial sampling here has returned up to 1,170 g/t Ag, 2.7 g/t Au, 1.0% Zn, 1.6% Pb.
  • Mexican Gold Corp. has engaged Geofisica TMC to complete a ground magnetic survey at the Cinco Señores zone at Las Minas, Veracruz.

ON MINING

  • First Majestic Silver Corp. reported second quarter 2017 production results from its six mines in Mexico. The company processed 691.8 K tonnes (7,603 tonnes per day, or tpd) averaging 130 g/t Ag, to produce 2.29 M Oz Ag, 15,186 Oz Au, 7.6 M Lb Pb, 860 K Lb Zn.First Majestic Produces 3.9M Silver Eqv3
  • McEwen Mining Inc. reported production results for Q2 2017, including 9,780 AuEq Oz from El Gallo mine in Sinaloa. Production in the second half of the year is expected to improve with the higher gold grade to be mined.
  • Fortuna Silver Mines Inc. released second quarter 2017 production results, including information from the San Jose Mine in Oaxaca, where 268.4 K tonnes were milled (1,483 tpd) @ 238 g/t Ag with a recovery of 91.8% to produce 1.887 M Oz Ag; and 1.82 g/t Au with a recovery of 91.5% to produce 14,410 Oz Au.
  • Excellon Resources Inc. has achieved dry mining conditions and completed its mine optimization plan at Platosa, in Durango. Two booster stations and 12 submersible pumps were installed and commissioned; drawdown rates met or exceeded the forecasts, with pumping rates over 30 K gpm. The mine still has to transition to higher production rates, possible under dry mining conditions.
  • Great Panther Silver Ltd. announced production results for the second quarter 2017. At the Guanajuato Mine Complex 80.5 K tonnes were milled @ 150 g/t Ag, 2.32 g/t Au, recovering 89.5% Ag, 87.2% Au, to produce 348.1 K Oz Ag, 5,247 Oz Au. At Topia in Durango, 18,041 tonnes were milled @ 414 g/t Ag, 0.74 g/t Au, recovering 92% Ag, 68.6% Au, to produce 221.1 K Oz Ag, 296 Oz Au, 405 tonnes Pb, 638 tonnes Zn. The company continues its efforts to obtain the Phase II permit on the tailings storage facility.
  • Endeavour Silver Corp. reported its production results for the second quarter 2017, when 1.143 M Oz Ag, 13,057 Oz Au were produced on its three Mexican mines.Endeavour SilverNews2
  • Capstone Mining Corp. announced production results for the second quarter 2017, including from its Cozamin mine in Zacatecas. By processing 230.8 K tonnes (2,536 tpd) @ 1.85% Cu, 0.55% Zn, 0.07% Pb, 40 g/t Ag (recoveries of 96.1% Cu, 62% Zn, 11.4% Pb, 79.6% Ag) 3,774 tonnes of copper plus Zn and Pb concentrates were produced.

ON FINANCING

  • Silver Bull Resources Inc. has completed the initial tranche of its previously announced private placement, for aggregate gross proceeds of CDN$1.46 M (Sierra Mojada, Coahuila).
  • Silver Spruce Resources Inc. closed its current non-brokered private placement and raised gross proceeds of $166.5 K (Pino de Plata, Chihuahua).

ON RESOURCES AND DEVELOPMENT

  • Leagold Mining Corp. reported drilling results for the first 20 holes of its infill and step-out exploration program in the Bermejal Underground deposit at the Los Filos mine in Guerrero. Over 12,900 m (23%) of the 56,000 m program have been completed, with eight diamond rigs and two reverse circulation rigs in operation. The mineralization occurs along contacts between the intrusive and the carbonate host rock, extending approximately 1,600 meters along the strike of the intrusive contact and has a vertical depth extent of over 600 meters. True width intercepts include 18.8 m @ 7.2 g/t Au; 13.3 m @ 6.8 g/t Au; 2 m @ 26.3 g/t Au; 18.9 m @ 3.8 g/t Au; 16.35 m @ 5.0 g/t Au; 25.96 m @ 3.3 g/t Au; 8.24 m @ 6.0 g/t Au; 1.52 m @ 20.2 g/t Au.

ON DEALS AND CORPORATE ISSUES

  • Alset minerals Corp. will acquire 100% interest in five more salars in zacatecas by issuing 4 M shares plus a 2.5% NSR to Hot Spring Mining, a Mexican mining company. Alset will have the right to purchase up to 1.5% of the NSR for CAD $500 K for each half-percent. Two managing partners of Hot Spring Mining will be paid a consulting fee of $1500 CAD each per month for an initial six month period which can be extended.
  • Leagold Mining Corp. received approval from the Mexican anti-trust commission (COFECE) with respect to the US$ 29 M subscription receipt financing provided by a fund managed by Orion Resource Partners in connection with the acquisition of the Los Filos mine from Goldcorp.

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

On the picture below, porphyritic andesitic dike with chilled margins intruding andesitic tuffs in Jalisco. Photo by Jorge Cirett.

IMG_4536 - copia

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

/ Gambusino Prospector / Leave a comment

During the 24th week of the year (June 12th to June 18th, 2017), at least 19 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, the Mexican government released ground for staking for the first time in over two years. ON EXPLORATION, in Sonora Millrock and Centerra are to explore the Navidad project, while Canuc released information on the San Javier project. In Chihuahua VVC Exploration obtained a coveted drilling permit, and Harvest Gold disclosed high-grade rock sampling results from Cerro Cascaron. In Guanajuato, Vangold released results from an extensive rockchip program at its Pinguico property.  ON MINING, no relevant news . ON FINANCING, Southern Silver closed the first tranche of a placement, raising $2.5 M. ON RESOURCES AND DEVELOPMENT, Mexus Gold announced the arrival of a secondary crusher and the installation of an atomic absorption lab at its Santa Elena mine in Sonora. ON DEALS AND CORPORATE ISSUES, Millrock and Western Mining. Entered into an agreement for the purchase of the Navidad property in Sonora. Nyrstar and Telson completed the transaction on the Campo Morado mine sale in Guerrero. San Marco sold to Goldcorp the La Pinta 06 concession in Zacatecas. Discovery Metals is to buy from private owners the La Kika concession in Coahuila.

ON MEXICO ISSUES

  • The Direccin General de Regulación Minera released the first liberty announcement in more than two and a half years, to liberate ground for staking. The release includes 104 concessions that have been reduced in size, and a new title issued, 43 concessions relinquished by the concessionaires and 40 concessions cancelled by payment defaults. It is hoped the agency now can liberate ground on a steady manner (A bigger release was promised on October of 2015).

ON EXPLORATION

  • Millrock Resources Inc. and Centerra Gold Inc. are to explore the recently optioned (see below) La Navidad gold project in Sonora. The 25 K hectares project presents gold mineralization hosted by low-angle faults related to the Magdalena Core Complex, with a zone of faults traced over 2.2 Km and 300-600 m surface width. Historic drill intercepts include 13.2 m @ 2.09 g/t Au; 6.6 m @ 1.34 g/t Au; 3.3 m @ 2.03 g/t Au; 19.5 m @ 0.84 g/t Au; 14.9 m @ 0.66 g/t Au; 8.3 m @ 1.03 g/t Au.
  • Mammoth Resources Corp. released results from its surface channel sampling at its Tenoriba project in Chihuahua. At the Moreno zone 11.5 m (true width, or TW) were cut @ 0.64 g/t Au, while at Carnertios (3 km to the ENE) the samples returned 15.5 m @ 0.99 g/t Au and 7.0 m @ 1.28 g/t Au.
  • Canasil Resources Inc. informed that the last drilling campaign at its Esperanza project in Zacatecas extends the known well-mineralized envelope on the Esperanza vein over 400 m of strike length and 350 m of depth, open in all directions. Based on alteration in volcanic rocks and geophysics, Canasil has outlined a 5 km long target for further exploration, as well as the presence of four other untested veins.
  • VVC Exploration Corp. announced that the SEMARNAT (Environmental Agency) has approved the application for advanced exploration drilling at its Salamayuca copper project in Chihuahua. The program envisages core drilling in up to 53 locations at the site.
  • Canuc Resources Corp. released compiled information from work done by the Santa Rosa Silver Mining Corp. on the San Javier project in Sonora, subsequent to 2012. Mineralization appears as vein and vein-breccia zones 1 to 4.5 m in width, alteration zones associated to the margins of felsic to intermediate dykes and quartz-stockwork breccia zones than can be much wider. At Colorado, the silica clay alteration is at least 11 m wide, with 11.2 m returning 284 g/t Ag, while the Carranza zone locally attains 31 m in width, with 11 m returning 283 g/t Ag. Nine prospects are located on a 2.4 km long corridor.
  • Harvest Gold Corp. disclosed rock sampling results at Cerro Cascaron project in Chihuahua. At La Cascarita two samples returned 3 m @ 1,170 g/t Ag, 2.7 g/t Au, 1.0% Zn; 1.3 m @ 331 g/t Ag, 0.07 g/t Au, 1.6% Pb. A select sample from the Serpiente Dorada vein returned 826 g/t Au, and six other samples from the main vein field returned between 0.25 and 38.0 g/t Au.
  • Vangold Mining Corp. released exploration results from its El Pinguico project in Guanajuato. To date 452 rock samples have been collected from surface and underground locations, results include (no widths provided) 3.4 g/t Au, 450 g/t Ag; 3.8 g/t Au, 331 g/t Ag; 4.1 g/t Au, 354 g/t Ag; 12.6 g/t Au, 1,490 g/t Ag; 5.5 g/t Au, 403 g/t Ag; 4.6 g/t Au, 350 g/t Ag; 9.2 g/t Au, 63 g/t Ag; 13.9 g/t Au, 278 g/t Ag. The program confirms the El Pinguico/El Carmen vein extends to the south, connecting with the La Joya, La Joyita and El Pirul vein systems, extending mineralization 1.5 km from the midpoint of the property.

ON MINING

  • No Relevant News.

ON FINANCING

  • Southern Silver Corp. closed the first tranche of the previously reported brokered private placement, for gross proceeds of $2.5 M (Cerro Las Minitas, Durango).

ON RESOURCES AND DEVELOPMENT

  • Mexus Gold US. announced the arrival of a secondary crusher to its Santa Elena mine in Sonora (not to mistake with First Majestic’s Santa Elena mine, also in Sonora), and reported assays for samples near the Don Julio vein system, reporting results of 8.3; 0.7; 1.9; 5.8; 5.0 ; 1.1; 1.3 g/t Au. The atomic absorption machine has been installed.
  • Consolidated Zinc Ltd. announced that two more drill holes at its Plomosas mine in Chihuahua have intersected 1.75 m and 0.80 m of massive and semi-massive sulphide mineralization. Furthermore, 33 rock chip samples were collected over 150 m strike in underground workings, with massive and semi-massive sphalerite and galena mineralization in the Las Espadas area.

ON DEALS AND CORPORATE ISSUES

  • Millrock Resources Inc. entered into an option agreement to purchase La Navidad project from a private Mexican firm, Western Mining S.A. de C.V.. To complete the 100% interest purchase, 2.5 M in option payments to Western may be made over a four-year period. An initial payment of 125 K has been made. Three further option payments of 125 K each may be made at annual intervals. A final option payment of $2 M could be made to complete the purchase of the mineral rights. Through its agreement with Millrock, Centerra has the option to earn an 80% interest in La Navidad by funding all the financial obligations in the underlying agreement between Millrock and Western.
  • Nyrstar NV. Announced the completion of the sale of its Campo Morado mine in Guerrero to Telson Resources Inc. for a total cash consideration of USD 20 M, and the potential for additional future proceeds through a variable price agreement linked to production from the mine. The Campo Morado poly-metallic mine can process 2,500 tonnes per day, with the mining concessions covering over 12 thousand hectares. During 2014 the mine processed 657 k tonnes @ 1.2 g/t Au, 115 g/t Ag, 4.6% Zn, 1.2% Cu, 0.9% Pb.
  • San Marco Resources Inc. entered into an agreement to sell its La Pinta 06 concession in Zacatecas to Goldcorp Inc. for US$225 K and a 1% NSR.
  • Discovery Metals Corp. (formerly Ayubowan Capital Ltd.) entered into a mineral exploration and option agreement to acquire the La Kika concession in Coahuila from private vendors. On closing US $45 K are to be paid, and the company is to incur in not less than US $2 M in exploration expenditures, half of which is a firm commitment, and the issuance of an aggregated 1 M shares to the vendors. A 30% royalty on the operating profit of direct shipping operations (for the first 450 K tonnes), or a 2%  NSR otherwise.

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

On the picture below, setting up a geophysical survey in northeastern Chihuahua, circa year 2000. Photo by Jorge Cirett.

Janos1

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

/ Gambusino Prospector / Leave a comment

During the 20th week of the year (May 15th to May 21st, 2017), at least 27 press releases were announced by companies working in Mexico. ON EXPLORATION, In Chihuahua Kootenay has begun drilling at La Cigarra, whereas Levon started drilling at Cordero. In Zacatecas Alset has sent the first drill samples for assay and Defiance commenced a drill program at San Acacio. In Veracruz Mexican Gold announced one high grade gold drill intercept  at Las Minas.  ON MINING, Fortuna presented financial results 2016. Mexus keeps advancing to production at Santa Elena in Sonora. ON FINANCING, three companies announced private placements, or increased placements for $7.8 M. One company completed and offering to reduce paid interest on outstanding notes for 300 M. ON RESOURCES AND DEVELOPMENT, Alio announced a PFS on its Ana Paula project in Guerrero, while Almaden Minerals presented a PFS, on Ixtaca, in Puebla. Consolidated Zinc continues drilling to get a resource on its Plomosas mine in Chihuahua. ON DEALS AND CORPORATE ISSUES, SilverCrest Metals began trading at the OTCQX® Best Market, Fortuna is getting up to date with its SEC filings, Mexican Gold has bought two more concessions at its Las Minas project in Veracruz and Colibri received confirmation that it is to resume trading on May 18th.

ON MEXICO ISSUES

  • No relevant news.

ON EXPLORATION

  • Kootenay Silver Inc. has initiated a 7,500 m drill program at its La Cigarra project in Chihuahua. The program is to focus on the expansion of the current mineral resource by first targeting an 800 m expanse between Las Venadas and Las Carolinas zones.
  • Levon Resources Ltd. starts a 5,000 m core drilling campaign at its Cordero project in Chihuahua. The holes are being drilled in the Cordero felsic dome complex in the central portion of the resource, looking for better grades near the surface.
  • Alset Minerals Corp. has completed one drill hole and five auger holes at La Salada, the first of seven salars to be drilled in Zacatecas. Soil and brine samples were collected and sent for assay.
  • Mexican Gold Corp. announced that step-out drilling at the Cinco Señores zone, in its Las Minas project in Durango, has indicated a potential parallel mineralized zone. One hole intersected 2.0 m @ 10.8 g/t Au, 42 g/t Ag, 2.8% Cu.
  • Defiance Silver Corp. commenced a drill program at its San Acacio property in Zacatecas, with the aim to expand the current deposit. Previous drilling at Esperanza intersected 12.7 m grading 297 g/t AgEq, and at Almaden 8.3 m @ 278 AgEq. A third target to be tested is the Quartz-Pyrite Breccia. Previous drilling includes intercepts of 17.0 m @ 110 g/t Ag, 0.1 g/t Au (including 8.1 m @ 222 g/t Ag, 0.2 g/t Au); 16.7 m @ 101 g/t Ag, 0.75 g/t Au (including 3.2 m @ 419 g/t Ag, 0.8 g/t Au); 10.1 m @ 100 g/t Ag, 0.56 g/t Au. These intercepts display lead and zinc values of up to 1.9% and 4.6% respectively.

ON MINING

  • Fortuna Silver Mines Ltd. presented full year 2016 financial results, with a net income of $17.8 M on revenue of $213 M. At San Jose in Oaxaca 273 K tonnes were milled (3,103 tonnes per day, TPD) @ 225 g/t Ag, 1.69 g/t Au, recovering 92% Ag, 92% Au, to produce 1.82 M Oz Ag, 13,660 Oz Au at cash cost $1.85 and all-in sustaining cost $6.73 per silver ounce, net of by-product Au credits.
  • Mexus Gold US. has completed two holding ponds and a heap leach pad, commenced a cyanide drip system on the heap and started the Merryl Crowe recovery system at its Santa Elena mine in Sonora (not to mistake with First Majestic’s Santa Elena mine, also in Sonora). Smelting the first 250 pounds of precipitate is the next step to be accomplished in May.

ON FINANCING

  • Geologix Explorations Inc. intends to carry a private placement for proceeds of up to $1 M (Tepal, Michoacan).
  • Mexican Gold Corp. announced an increase on its private placement, from $1.5 M to $1.8 M (Las Minas, Veracruz).
  • New Gold Inc. announced that it has completed its offering of $300 million aggregate principal amount of 6.375% Senior Notes due 2025, intending to use the net proceeds to fund the redemption of its outstanding $300 million 7.00% Senior Notes due 2020 on or about June 3, 2017.
  • Southern Silver Exploration Corp. announced a private non-brokered placement intended to raise $5 M (Cerro Las Minitas, Durango).
  • Fortuna Silver Mines Ltd. announced that “The Company will not be proceeding with the brokered private placement announced on April 4, 2017 and April 27, 2017”.

ON RESOURCES AND DEVELOPMENT

  • Alio Gold Inc. announced the pre-feasibility study (PFS) results on its Ana Paula project in Guerrero. The report defines 13.4 M tonnes @ 2.36 g/t Au as proven and probable mineral reserves, containing 1.02 M Oz Au. The scope of the PFS involves an open-pit with a mine life of 7.5 years to produce 868 K Oz Au on an 85% recovery rate. A capital cost of $137.2 M and an NPV of $223 M and IRR of 34% after tax at $1,250/oz Au. “Mineralization occurs in the complex breccia, granodiorite, monolithic breccia, hornfels and limestoneshale. The bulk of the high grade mineralization at Ana Paula is centered on the complex breccia domain which is surrounded by a high-grade mineralized halo, mainly granodiorite. “
  • Almaden Minerals Ltd. has filed the pre-feasibility study (PFS) on its Ixtaca project in Puebla.
  • Consolidated Zinc Ltd. is drilling to determine the full scope and geometry of the Carola South and Tres Amigos zones, both with high-grade zinc recent results, as both areas are to be included in the upcoming resource update.

ON DEALS AND CORPORATE ISSUES

  • SilverCrest Metals Inc. has begun trading on the OTCQX® Best Market under its existing ticker symbol “SVCMF”, operated by OTC Markets Group, providing a better platform to reach U.S. investors (Las Chispas, Sonora).
  • Fortuna Silver Mines Inc. has filed its 2016 annual financial documents, complying with SEC requirements. The company still has to file the Q1 2017 financial statements, and is planning to comply by May 24th, 2017.
  • Mexican Gold Corp. Acquired two mining concessions at its Las Minas project in Veracruz. The company paid $150 K plus VAT for 100% interest on the properties, while the previous private owner is to retain 1.5% NSR, of which 0.5% can be purchased by $500 K. The Pueblo Nuevo concession covers 97.5 has with several historical underground mines, including one with 21 levels. The veins in marble and diorite are 100 to 300 m in length, and 0.50 to 3.0 m in width. Of three samples collected, one returned 11.99 g/t Au, 41 g/t Ag, 1.3% Cu over 1 m and one other 0.2 m @ 28 g/t Au, 14 g/t Ag. The 43 hectares La Luz concession covers an area prospective for skarn mineralization akin to the adjacent Las Minas area.
  • Colibri Resources Corp. has received confirmation from the TSX Venture Exchange that its shares will resume trading on May 18th.

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

On the picture below, incipient brecciation sealed by oxidized sulfide in a volcanic rock, Central Chiapas. Photo by Jorge Cirett.

Breccia, La Javia SE 2

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

/ Gambusino Prospector / Leave a comment

During the 19th week of the year (May 8th to May 14th, 2017), at least 31 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, Mexico was in 2016 the major producer of silver in the world for the seventh year in a row. ON EXPLORATION, In Sonora Riverside Resources initiated exploration on its Cecilia project and SilverCrest reported the discovery of a new high-grade silver vein at its Las Chispas project. Arian Silver presented lithium results from its projects in Zacatecas.  ON MINING, Eleven companies presented first quarter 2017 financial results: Hecla, Golden Minerals, Pan American, Excellon, GoGold, Premier Gold, Avino, Americas Silver, Sierra Metals, Aura Minerals and Mag Silver. ON FINANCING, Only one company, Alset Minerals, presented a press release relating to a $369 K financing round. ON RESOURCES AND DEVELOPMENT, Avino Silver presented an update in exploration and the expansion project on the process facilities, and a PEA on the tailings project. Hecla presented an update on exploration activities at San Sebastian. Argonaut presented an exploration update on its recently acquired property adjacent to El Castillo mine. Candelaria presented an updated technical report on the Caballo Blanco property. Consolidated Zinc presented more high-grade zinc results from Plomosas, and Timmins/Alio presented an optimization plan on the San Francisco mine. ON DEALS AND CORPORATE ISSUES, Red Tiger received failure-to-file cease trade orders from the Ontario securities Commission. Prospero closed a deal with Fortuna for $1.5 M. Mexico Gold closed a debt with shares. Timmins Gold is now formally Alio Gold.

ON MEXICO ISSUES

  • Mexico kept during 2016 the title as the major silver producer of the world for the seventh year in a row, producing 182.6 M Oz, even with a small drop in production relative to 2015. For this year the Mexican production is expected to rise by 2.5 M Oz of silver, aided by the production of the San Julian and Palmarejo mines in Chihuahua. On a world basis the silver production fell by 32.6 M Oz, or 0.6%, to 885.8 M Oz.

ON EXPLORATION

  • Riverside Resources Inc. has initiated an extensive rock-chip sampling campaign at its Cecila project in Sonora, with the aim of increasing the extent of the known zones of gold mineralization. Surface access agreements are in place.
  • Arian Silver Corp. reported assay results from sampling from its three recently optioned lithium properties in Zacatecas. Results are up to 120 ppm Li at Columpio, 88 ppm Li at Pozo Hondo and 158 ppm Li at La Abundancia.
  • SilverCrest Metals Inc. discovered an unmined high grade vein immediately adjacent to Las Chis0pas main vein. The new vein has been named Giovvani, appears to be continuous for 400 to 500 m and 150 to 200 m along dip, averaging 2.0 m in thickness. Giovvani vein intercepts include 1.0 m @ 0.05 g/t Au, 306 g/t Ag; 2.3 m @ 0.7 g/t Au, 125 g/t Ag; 2.1 m @ 1.7 g/t Au, 215 g/t Ag; 2.1 m @ 3.4 g/t Au; 330 g/t Ag (including 0.6 m @ 10.8 g/t Au, 890 g/t Ag); 0.5 m @ 7.5 g/t Au, 1,095 g/t Ag; 2.3 m @ 3.6 g/t Au, 578 g/t Ag; 0.9 m @ 4.4 g/t Au, 564 g/t Ag.

ON MINING

  • Hecla Mining Co. presented first quarter 2017 financial and operating results, including figures from its operations in Mexico. At San Sebastian in Durango, 750.8 K Oz Ag, 6,284 Oz Au were produced, operating at 407 tpd. The cash cost after by-product credits was negative $3.27 per Ag Oz, the AISC after by-product credits was $0.43 per Ag Oz. Cash and cash equivalents stand at 176.8 M. Recent drill intercepts include 1.86 m @ 124 g/t Au, 12,420 g/t Ag; 1.92 m @ 25.5 g/t Au, 3,866 g/t Ag; 0.73 m @ 1.5 g/t Au, 572 g/t Ag; 0.94 m @ 3.7 g/t Au, 379 g/t Ag; 1.10 m @ 24 g/t Au, 6,118 g/t Ag; 2.13 m @ 0.9 g/t Au, 385 g/t Ag.
  • Golden Minerals Co. provided financial results for the first quarter 2017. During March the lease on the Velardeña oxide mill to Hecla Mining Co. was further lengthened until December 2018. During January 2017 was released an estimate of mineralized material for the Rodeo property in Durango. In February 2017 a preliminary economic assessment (PEA) was completed for the company’s Santa Maria property in Chihuahua. Electrum Global Holdings L.P. has been drilling the Celaya property in Guanajuato, as part of an earn-in agreement. Cash and cash equivalents stand at $2.1 M at the end of 2017, with no debt.
  • Pan American Silver Corp. presented first quarter results 2017, including figures from its operations in Mexico. Production was 1.63 M Oz Ag, 870 Oz Au; 0.96 M Oz Ag, 24,390 Oz Au, and 0.35 M Oz Ag, 1,330 Oz Au respectively at La Colorada in Zacatecas, Dolores in Chihuahua and Alamo Dorado in Sonora.
  • Excellon Resources Inc. reported Q1 2017 financial results. During the period the company processed 11.9 K tonnes @ 317 g/t Ag, 2.9% Pb, 4.1% Zn, with recoveries of 89.8% Ag, 81.3% Pb, 81.8% Zn to produce 108 K Oz Ag, 610 K Lb Pb, 838 K Lb Zn. The mine dewatering optimization plan has now 6 of 12 pumps working, with the water level droping by more than 2.8 m. Cash and cash equivalents of $5.7 M at the end of the period, and net working capital totaled $6.2 M.
  • GoGold Resources Inc. released financial results for Q1 2017. During the period the company sold 413 K Oz AgEq Oz for revenue of $7.1 M, operating at cash cost $9.80 per AgEq Oz and AISC $11.76 per AgEq Oz (Parral tailings, Chihuahua; Santa Gertrudis, Sonora).
  • Premier Gold Mines Ltd. announced operational and financial results, including figures from its Mercedes mine in Sonora, where 166.8 K tonnes were milled @ 4.34 g/t Au, 44 g/t Ag, to produce 22,164 Oz Au, 88.6 K Oz Ag. Recoveries were 95.4% Au and 37.3% Ag. And cash in co-product basis was $675 per Au Oz sold, and all-in sustaining cost of $785 per Au Oz. The 2017 drilling program has been increased to 50,000 m, with currently five rigs working from the surface and four from underground. Cash and cash equivalents stood at $110.7 M at the end of March.
  • Avino Silver & Gold Mines Ltd. presented the financial results for Q1 2017, period during which revenue was $8.1 M and net income after taxes $0.7 M. At the end of March the company had $17.7 M of cash and cash equivalents (Avino and San Gonzalo, Durango).
  • Americas Silver Corp. reported operational and financial results for the first quarter of 2017, period during which revenues of $15.2 M and a net loss of ($0.2) were obtained. The company purchased an option on the San Felipe project in Sonora for total payments of $7.0 M plus VAT. The cash balance at the end of March was $17.6 M (San Rafael, Cosalá, Sinaloa).
  • Sierra Metals Inc. reported Q1 2017 financial results, with revenue of $54.5 M. At Bolivar in Chihuahua, cash cost was $1.14 per CuEq pound, and AISC was $ 1.89 per CuEq pound. At Cusi, in Chihuahua, cash cost per AgEq Oz was $10.82, and AISC per AgEq Oz was $22.72. The company had $38.0 M in cash and cash equivalents at the end of the period.
  • Aura Minerals Inc. presented financial results for Q1, 2017, which include $34.9 M in revenue, and a net loss of ($5.02 M), (Aranzazu, Zacatecas)
  • Mag Silver Corp. disclosed financial results for the first quarter of 2017. A new resource estimate and design upgrades for the Juanicipio (Zacatecas) JV project with Fresnillo is to be completed on the second quarter. A 20,000 m 2017 exploration drill program was initiated after the quarter end. The company had cash and cash equivalents totaling $132.4 M at the end of the period.

ON FINANCING

  • Alset Minerals Corp. has filed documents with the TSX seeking final approval on their previously announced non-brokered private placement for gross proceeds of $369 K (Lithium properties, Zacatecas).

ON RESOURCES AND DEVELOPMENT

  • Avino Silver & Gold Mines Ltd. informed the installation of a fourth mill and flotation circuit on its San Avino mine is on progress, a positive PEA (Preliminmary Economic Assessment) was presented last April on the re-treating of the Avino mine tailings, a study is in progress to weight the different options to tailings management (backfill on underground, pit or new tailings dam). A 3,000 m, 18 holes, infill drill program has been expanded to include further 20 holes to test the gap zone between San Luis and Elena Tolosa, aiming to update the category of the resource. A small scale test pilot project is underway to test the reduction of bismuth content (to avoid smelter penalties) from the concentrate. At San Gonzalo testing of the zinc circuit continues in the effort to improve gold and silver recoveries.
  • Hecla Mining Co. updated development and exploration work at its San Sebastian mine in Durango. The company expects to transition from open pit to underground by the end of 2017. A ramp is under construction to connect the new portal with the existing workings. Drilling has focused on resource definition along the Middle and Francine veins, recently defining more than 9.6 km of mineralized strike length.
  • Argonaut Gold Inc. completed 11,540 m in 75 reverse-circulation (RC) holes at the North Target of its El Castillo mine in Durango. The North Target lies within the 420 hectare San Juan mineral concession recently acquired from Fresnillo PLC., and the drilling is part of an ongoing infill RC drill program outward from El Castillo open pit. Results include 99.1 m @ 0.64 g/t Au; 141.7 m @ 0.49 g/t Au; 153.9 m @ 0.53 g/t Au; 138.7 m @ 0.58 g/t Au, 111.3 m @ 0.54 g/t Au; 141.7 m @ 0.68 g/t Au.
  • Candelaria Mining Corp. announced an updated NI 43-101 technical report for the Caballo Blanco property in Veracruz. The report incorporates the results of 55 drill holes collared in 2012, which were not included in the last resource calculation. The new report includes 31.2 M tonnes @ 0.52 g/t Au as an indicated resource containing 521 K Oz Au, and 8.6 M tonnes grading 0.34 g/t Au containing 95 K Oz Au as an inferred resource.
  • Consolidated Zinc Ltd. confirmed the presence of high grade zinc on the Tres Amigos North zone, at its Plomosas property in Chihuahua. Six initial drill holes completed returned intervals as high as 1.5 m @ >30% Zn, 0.6% Pb, 52 g/t Ag; 1.85 m @ >30% Zn, 0.2% Pb, 11 g/t Ag; 0.5 m @ >30% Zn, 0.6% Pb; 0.5 m @ >30% Zn, 0.3% Pb. Other results include 2.2 m @ 2.8% Zn, 1.1% Pb; 0.6 m @ 6.6% Zn, 1.4% Pb; 0.5 m @ 5.9% Zn, 0.3% Pb; 0.6 m @ 8.5% Zn, 0.3% Pb; 0.6 m @ 5.3% Zn, 2.2% Pb.
  • Timmins Gold Corp. (in process to change name to Alio Gold Corp.) informed of a revitalization plan (i.e. pit push back) for its San Francisco mine in Sonora. Under this plan the production guidance is increased to 86 – 92 K Oz Au for 2017, and an average of 103 K Oz Au for a further six years at cash cost of $900 and AISC $935 per Au Oz. The updated reserves at San Francisco stand at 54.8 M tonnes @ 0.53 g/t Au containing 928.7 K Oz Au, measured and inferred resources of 74.8 M tonnes @ 0.54 g/t Au that contain 1.3 M Oz Au and 0.7 M tonnes of inferred resources containing 13 K Oz Au. The expansion capital adds up to $ 44.9 M from 2017 to 2019.

ON DEALS AND CORPORATE ISSUES

  • Red Tiger Mining Inc. has received failure-to-file cease trade orders from the Ontario securities Commission. The company aims to file the required 2016 annual filings by July 17, 2017 (La Luz, Sonora).
  • Prospero Silver Corp. closed the previously announced C$1.5 M strategic investment from Fortuna Silver Mines Inc. “Prospero will allocate C$1.2 million to drill testing selected projects and C$300k will be allocated towards Prospero’s generative efforts in Mexico. Fortuna will have the right to select one of the projects within 18 months from signing of the definitive agreement to joint venture with Prospero, potentially earning in to a 70% interest by spending US$8 million over 6 years and completing a Preliminary Economic Analysis on the selected property” (El Petate, Hidalgo)
  • Mexican Gold Corp. has issued an aggregate of 1.66 M shares to settle a debt of $478.9 K to certain officers and directors of the company (Las Minas, Veracruz).
  • Timmins Gold Corp. has formally changed name to Alio Gold Corp., expecting to be listed under the new name and ticker symbol on the Toronto Stock Exchange on March 16th.

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

On the picture below, shear zone within a granodioritic protolith, Central Chiapas. Photo by Jorge Cirett.

Img0810

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

/ Gambusino Prospector / Leave a comment

During the 14th week of the year (April 3rd to April 9th, 2017), at least 23 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, Sonora congressmen presented a proposal to reinstate the deductibility of exploration expenses, a move highly needed by the country to recover some ground in the investment favorability ranking.  ON EXPLORATION, Source Exploration continues drilling in Durango, Galore Resources has a new model for its Durango project, and is working on defining targets by mapping and sampling, and Canasil presented drilling results from its project in Durango/Zacatecas. ON MINING, Coeur Mining, US Antimony, Marlin Gold and Timmins Gold presented operating and/or financial results for Q1 2017. ON FINANCING, Marlin Gold continues to pay its debt in advance, Geologix intends to raise up to $3 M, Alamos Gold has paid a substantial amount and is now debt free, and Wealth Minerals closed its financing, having raised $4.89 M. ON RESOURCES AND DEVELOPMENT, Kootenay Silver presented drilling results from its project in Sonora, Marlin Gold presented drilling results from the bottom of the pit in its Sinaloa operations, Endeavour Silver updated resource figures in Jalisco, Almaden presented PFS results from its project in Puebla and Levon is planing a drill program seeking to define a sweeter core for its project in Chihuahua.  ON DEALS AND CORPORATE ISSUES, Plata Latina confirms the optioning of its property in Guanajuato, Colibri reaches a definitive agreement on the acquisition of Canadian Gold, Fortuna Silver provides an update on its ongoing  regulatory process, Alset Energy changes name to Alset Minerals and Leagold completes the acquisition of the Los Filos project from Goldcorp in Guerrero.

ON MEXICO ISSUES

  • Congressmen from Sonora presented a proposal to reinstate the deductibility of exploration expenses, aiming to restore the deteriorated attractiveness index for mining investment in Mexico. The governor of Sonora, C. Pavlovich supports the move that can foster new projects, raise production and generate more resources for the Mining Fund to benefit the inhabitants of mining zones in the country. The congressmen are Susana Corella, Sylvana Beltrones, Abel Murrieta, Prospero Ibarra and Ulises Cristopulos, all five from the PRI.

ON EXPLORATION

  • Source Exploration Corp. has completed to date 2,290 m of drilling (out of a 2,800 m program) in 17 holes at its Las Minas project in Veracruz, with samples for nine holes having been sent for assay. “The program consists of infill/extension as well as step-out drilling to expand the mineralized footprint of the El Dorado/Juan Bran zone.” This zone is 420 m long and 650 m down dip, and from 8 to 60 m in thickness in drill intercepts. An initial mineral resources estimate for the mineralized zone is planned for the second quarter of the year.
  • Galore Resources Inc. is nearing the completion of a geological mapping and sampling program on the San Jose and Los Gemelos claims, part of its Dos Santos project in Zacatecas. A new exploration model is developing, with a number of drill holes being planned to test new exploration targets. An estimated 3,500 m drill program is envisaged beginning on the San Jose claim.
  • Canasil Resources Inc. presented drilling results for two holes from its La Esperanza project in Durango and Zacatecas. One hole intercepted 4.92 m (True Width, or TW) @ 257 g/t Ag, 0.64% Zn, 0.63% Pb; while the other intersected 2.02 m @ 89 g/t Ag, 1.8% Zn, 1.0% Pb; and 1.71 m @ 225 g/t Ag, 1.3% Zn, 0.6% Pb; and 5.81 m @ 204 g/t Ag, 1.8% Zn, 1.5% Pb. The first hole is a 60 m step-out to the southeast, extending the length of La Esperanza vein to 400 m, while the second hole intercepted several mineralized intervals within a 32 m wide structure. The bladed calcite textures encountered suggest the upper parts of an epithermal system.

ON MINING

  • Coeur Mining Inc. announced first quarter 2017 production results, including figures from its operations at Palmarejo, Chihuahua, where 360.4 K tonnes of ore were milled at a grade of 150.5 g/t Ag, 2.80 g/t Au, to produce 1.53 M Oz Ag, 30,792 Oz Au. Metal recoveries were 86.5% and 93.7% respectively.
  • United States Antimony Corp. presented production figures for the first quarter of 2017, including from its operations in Mexico. At Soyatal, in Queretaro, and Wadley in San Luis Potosi, 200 K Lb of contained antimony were produced and sent to the Madero smelter, where 132,092 Lb were processed and shipped to the US as finished metal. The antimony price has recently increased from $3.33 to $3.97 per Sb pound.
  • Marlin Gold Mining Ltd. provided and operational update for the first quarter of 2017 on its La Trinidad mine in Sinaloa, with 355 K tonnes of ore @ 1.74 g/t Au, bearing 19,844 Oz of Au, being crushed and staked on the heaps.
  • Timmins Gold Corp. reported Q1 2017 production of 26,048 Oz Au, 11,899 Oz Ag at its San Francisco mine in Sonora. 1.96 M tonnes of ore were processed @ 0.48 g/t Au, and 3.27 M tonnes of waste moved, for a strip ratio of 1.67. Ore came from three pits: San Francisco Main, La Chicharra and Las Barajitas. As the San Francisco pit undergoes more stripping, ore from the last two pits will supply the operations during the second and third quarters.

ON FINANCING

  • Marlin Gold Mining Ltd. repaid a further US$2.0 M of principal from its unsecured facility to affiliates of Wexford Capital LP, Marlin’s controlling shareholder.  Total outstanding principal of the Facility now stands at US$30.0 million, down from US$37.5 million at year end 2016. Cash and refined gold stands at approximately $6.7 M, with a payable balance of $4.2 M (La Trinidad, Sinaloa).
  • Geologix Explorations Inc. is to offer shares and warrants of the company, seeking to raise up to $3 M on a private placement (Tepal, Michoacan).
  • Alamos Gold Inc. “has completed the redemption of its outstanding US$315 million 7.75% Senior Secured Second Lien Notes (the “Notes”) due in 2020. This will result in annual interest savings of US$24.4 million. The Notes were redeemed at a price of 103.875% of the principal amount plus accrued interest to the date of redemption. The Notes were retired with net proceeds of US$239 million from the equity financing completed in February 2017 along with existing cash”. The company is again debt-free (Mulatos, Sonora).
  • Wealth Minerals Ltd. closed the previously announced non-brokered private placement, for gross proceeds of $4.89 M (Coronado, Chihuahua)

ON RESOURCES AND DEVELOPMENT

  • Kootenay Silver Inc. reported high-grade drilling results from 6 remaining holes of the 2016 drill program at its La Negra property in Sonora, operated by partner Pan American Silver Corp. Four of the six holes were drilled on La Negra breccia, which is 600 m long and still open at depth, while the other two were testing another target. The next intercepts are from the drill holes at the La Negra breccia: 47.1 m @ 121 g/t Ag, 0.11 g/t Au, 0.26% Pb (including 13 m @ 216 g/t Ag, 0.18 g/t Au, 0.14% Pb); 40.85 m @ 194 g/t Ag, 0.06 g/t Au, 0.4% Pb (including 11.65 m @ 441 g/t Ag, 0.08 g/t Au, 1.0% Pb); 25 m @ 98 g/t Ag, 0.04 g/t Au, 0.17% Pb. The two drill holes testing the other target returned no significant results.
  • Marlin Gold Mining Ltd. disclosed drill results from the bottom of the pit at its La Trinidad mine in Sinaloa, following up high-grade blast-hole assays, and to investigate to depth the high grade HS zone. Results include: 6.5 m @ 2.59 g/t Au; 9.4 m @ 3.27 g/t Au; 10.2 m @ 2.68 g/t Au; 17.9 m @ 0.99 g/t Au; 17.7 m @ 1.21 g/t Au; 20.0 m @ 2.33 g/t Au; 7.0 m @ 3.45 g/t Au; 6.0 m @ 3.55 g/t Au.
  • Endeavour Silver Corp. reported an updated NI43-101 mineral reserve and resource estimate for its Terronera mine project in Jalisco. Reserves stand at 4.061 M tonnes @ 207 g/t Ag, 1.95 g/t Au, for 27 M Oz Ag, 255 K Oz Au. Indicated resources are 3.959 M tonnes @ 232 g/t Ag, 2.18 g/t Au, for 29.5 M Oz Ag, 277 K Oz Au, and Inferred resources stand at 0.72 M tonnes @ 309 g/t Ag, 1.48 g/t Au, for 7.1 M Oz Ag, 34 K Oz Au.
  • Almaden Minerals Ltd. reported results of the pre-feasibility study (PFS) for its Ixtaca deposit in Puebla. The report states an after-tax NPV(5%) of $310 M at IRR of 41%, an initial capital of $117 M and two years for payback. With the production of 88,780 Oz Au and 5.5 M Oz Ag during the first 9 years at cash cost $706 and AISC of $862 per gold equivalent ounce, and a total production of 1.04 M Oz Au, 70.9 M Oz Ag. The measured resource holds 42.45 M tonnes @ 0.57 g/t Au, 35.7 g/t Ag, the Indicated resource contains 83.37 M tonnes @ 0.45 g/t Au, 22.5 g/t Ag and Inferred resources stand at 47 M tonnes @ 0.3 g/t Au, 19.1 g/t Ag.
  • Levon Resources Ltd. is planning a drilling program on its Cordero project in Chihuahua. The plan envisages 5,000 m in 28 core holes, in close spaced infill drilling within the Felsic Dome portion of the resource defined in 2014.

ON DEALS AND CORPORATE ISSUES

  • Plata Latina Minerals Corp. has received approval from its shareholders and the TSX Venture Exchange on its option agreement with Metalurgica Reyna, S.A. de C.V. (Fresnillo PLC) regarding its Naranjillo property in Guanajuato. During a 36 month period Fresnillo is to pay US 1.45 M in installments (US$0.2 M already paid), invest US$3 M in the property, and further US$0.5 M and a 3% royalty to keep the property.
  • Colibri Resources Corp. “reached a definitive agreement with Ontop Capital Limited (the “Vendor”) regarding the acquisition of Canadian Gold Resources Ltd. (“CGR”) from the Vendor….” Colibri has agreed to issue 24.2 M shares at a price of $0.165 per share to the Vendor for an aggregate acquisition cost of $4.0 M (Pilar Gold project, Sonora?).
  • Fortuna Silver Mines Inc. provided an update on the ongoing regulatory review of the Company’s 2015 annual filings by the United States Securities and Exchange Commission (SEC), and announced a management cease trade order (MCTO) by the British Columbia Securities Commission and other Canadian provincial securities regulatory authorities. Fortuna is delayed in filing its annual audited financial statements and related MD&A for the years 2015 and 2016. The Company expects to be in a position to complete the SEC filing by May 5, 2017.
  • Alset Energy Corp. is changing its name to Alset Minerals Corp., while keeping its current stock symbol (TSXV: ION).
  • Leagold Mining Corp. has completed the acquisition of the Los Filos Gold mine in Guerrero, for US$350 M from Goldcorp Inc. Leagold has completed a C$179 million equity financing (US$133 million), US$50 million equity private placement, and US$150 million senior secured term loan. Post-closing, Leagold estimates its cash balance to be approximately US$76 million. Goldcorp shares in Leagold amount to 25.3%, and will be reduced to 22.9% once regulatory approvals come through.

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

On the picture below, a hydrothermal breccia in a coarse grained felsic intrusive rock, with monomictic rounded fragments suspended in a dark sulfide-carrying siliceous matrix, located in southern Chiapas. Photo by Jorge Cirett.

Coatan 100 Polarization

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

/ Gambusino Prospector / Leave a comment

During the 3rd week of the year (16th to 22nd January, 2017) at least 28 press releases were announced by companies working in Mexico, including six preliminary production reports for 2016. ON EXPLORATION, five companies presented exploration updates. In Sonora exciting high grade gold results from a drilling campaign were announced, also in Sonora another company is defining a zoned porphyry copper alteration center. In Durango the results for the first holes of a large campaign are being received, with some mineralization to show. In Zacatecas a more than 50 m long interval of core shows brecciation, quartz veining and presence of sulfides, in a step-out hole targeting a Ag-Pb-Zn vein, results are pending. In Coahuila work was done during 2016 to define steep structures that could define high grade orebodies. ON MINING, McEwen Mining, Argonaut Gold, Avino Silver, First Majestic, Sierra Metals and Primero Mining presented preliminary fourth quarter and full-year 2016 production figures, and Capstone presented its operational and capital guidance for 2017.  ON FINANCING, One company reported the closing of the first tranche of a non-brokered private financing for $209 K. ON RESOURCES AND DEVELOPMENT, one company reported updated resource estimates for its three mines in Mexico. Another company presented infill and exploration drilling results on its advanced project in Puebla, while one other company presented a PEA on a copper-gold property. A Mexican company boasts the largest manganese reserves in North America. ON DEALS AND CORPORATE ISSUES, a JV has been formed in a silver discovery in Durango; a company with a project in Sinaloa has been approved to list on the NYSE and a property in Sonora has been acquired to bring it into production by a JV.

ON EXPLORATION

  • Evrim Resources Corp. announced initial drill results from its Ermitaño project in Sonora provided by its exploration partner First Majestic Silver Corp. Results for four holes have been received, of a 947 meters drill program, including 18 m @ 11.4 g/t Au, 86 g/t Ag (including 3.3 m @ 34.6 g/t Au, 242 g/t Ag); 9.6 m @ 1.8 g/t Au, 24 g/t Ag; 13.2 m @ 1.1 g/t Au, 29 g/t Ag; 8.8 m @ 0.8 g/t Au. “The Ermitaño West zone …. consists of a network of low to intermediate sulphidation east-west trending epithermal veins and stockwork. The veining covers an area 1,200 metres long by 600 metres wide”.
  • Silver Bull Resources Inc. presented a review of work done in 2016 at its Sierra Mojada property in Coahuila. The company completed a 590 line kilometer airborne magnetic geophysical survey, defining several deep structures coincident with old high grade silver and zinc mines, and some high grade intercepts on drilling. Drilling of 1,400 m on the fourth quarter, 2016, is to be followed by 1,400 m of drilling in the first quarter, 2017. Besides the silver mineralization, Silver Bull previously defined a measured and indicated resource of zinc oxide mineralization of 10 M tonnes @ 11% Zn. During 2017 the plan is to refine the metallurgy, needed for a preliminary economic assessment.
  • Canasil Resources Inc. has completed the first hole of its current drilling campaign at its La Esperanza project in Zacatecas. This hole intersected an extended interval from 345 to 391 meters downhole, carrying banded quartz vein, veinlets and breccias hosted within volcanic rocks. Core is being logged and prepared for assaying; sphalerite, galena and chalcopyrite have been noted. The drill program is planned for 1,500 – 2,000 m of core drilling in four or five holes.
  • San Marco Resources Inc. announced that geologic traverses, prospecting and rock chip sampling identified porphyritic intrusions along the NE contact of a batholith in target #1068 of its partnership with Globetrotters. Preliminary geologic mapping indicates a large zoned alteration system with a potassic (biotite-magnetite) core and a large phyllic (quartz-sericite) envelope.
  • Southern Silver Exploration Corp. reported results from two holes of its 10,000 m drilling campaign at Cerro Las Minitas, Durango. The best intercept was 14.8 true width @ 39 g/t Ag, 0.1% Pb, 10.2% Zn. A second rig is being mobilized to the site to speed-up the program.

ON MINING

  • McEwen Mining Inc. presented production results for 2016, which includes 55,266 AuEq Oz produced at its El Gallo mine in Sinaloa. At the end of the year the company has no debts and $36 M in cash, $21 M in precious metals and $7 M in marketable securities.
  • Capstone Mining Corp. presented its operational and capital guidance for 2017. At Cozamin in Zacatecas, milled tonnes are expected to be lower, but at higher grade than in 2016, with 80% of ore coming from the narrow veined Mala Noche Footwall zone. “All-in cost includes the development costs reflective of the move from the main zone to the footwall zone.” During the year the potential to bring the existing zinc resource into the mine plan will be evaluated. The exploration budget for Cozamin is $5 M, which includes 30,000 m of primarily underground infill drilling aimed at increasing reserves.
  • Argonaut Gold Inc. presented production figures for the fourth quarter and full year 2016. In the fourth quarter, at El Castillo in Durango 16,747 AuEq Oz were produced, and 17,637 AuEq Oz at La Colorada in Sonora. During 2016 El Castillo and La Colorada produced 62,766 and 59,331 AuEq Oz respectively, for a total of 122,097 AuEq Oz. At year end the company had $42 M in cash and $30 M available on an undrawn corporate revolver. For 2017 the company aims to produce 70-80 K AuEq Oz and 45-50 K AuEq Oz at El Castillo/San Agustin Complex and La Colorada respectively, at consolidated cash cost $675-$725 and AISC $910-$960.
  • Avino Silver & Gold Mines Ltd. reported fourth quarter and full year 2016 production results from its Avino property in Durango. The consolidated production for the year was 1.612 M Oz Ag, 7,119 Oz Au and 4.2 M Lb Cu, for a total of 2.679 M Oz AgEq. During the fourth quarter 2016, at the Avino mine 101.6 K tonnes were milled @ 65 g/t Ag, 0.69 g/t Au, 0.37% Cu, with recoveries of 85% Ag, 69% Au and 91% Cu, producing 179.5 K Oz Ag, 1,540 Oz Au, 755,645 Lb Cu; while at the San Gonzalo mine 33.5 K tonnes were milled @ 262 g/t Ag, 1.16 g/t Au with recoveries of 85% Ag, 83% Au, producing 239.8 K Oz Ag, 1,041 Oz Au.
  • First Majestic Silver Corp. presented production results for the full year and the fourth quarter 2016. During the period a total of 11.9 M Oz Ag, 62,436 Oz Au, 33.2 M Lb Pb and 10.6 M Lb Zn were produced. During the fourth quarter production in First Majestic’s five mines was as follows: At Santa Elena in Sonora, 257.8 K tonnes were processed (2,802 tpd) @ 89 g/t Ag (89% recovery) to produce 660.2 K Oz Ag, 11,430 Oz Au. At La Encantada in Coahuila, 235 K tonnes were processed (2,555 tpd) @ 132 g/t Ag (57% recovery) to produce 567.9 K Oz Ag, 22 Oz Au. At La Parrilla, Durango, 153.3 K tonnes were processed (1,666 tpd) @ 130 g/t Ag (78% recovery) to produce 497.4 K Oz Ag, 260 Oz Au, 1.85 M Lb Pb, 1.19 M Lb Zn. At Del Toro in Zacatecas, 82.7 K tonnes were processed (900 tpd) @ 157 g/t Ag (82% recovery) to produce 343.9 K Oz Ag, 70 Oz Au, 5.83 M Lb Pb. At San Martin, in Jalisco, 76.8 K tonnes were processed (835 tpd) @ 254 g/t Ag (81% recovery) to produce 510.4 K Oz Ag, 888 Oz Au. At La Guitarra in Mexico State, 38.4 k tonnes were processed (418 tpd) @ 246 g/t Ag (79% recovery) to produce 239.8 K Oz Ag, 2,073 Oz Au. The company aims to have an AISC $11.96 to $12.88 per silver ounce in 2017.
  • Sierra Metals Inc. reported fourth quarter and full year 2016 production results, which includes figures on its Mexican operations. At Bolivar, in Chihuahua, 950.4 K tonnes were processed (2,715 tpd) @ 1.0% Cu, 16.7 g/t Ag, 0.19 g/t Au (recoveries of 81.7% Cu, 77.8% Ag, 50.5% Au) to produce 17.1 M Lb Cu, 440 K Oz Ag, 2,986 Oz Au. At Cusi, in Chihuahua, 186.9 K tonnes were processed (534 tpd) @ 171.8 g/t Ag, 0.26 g/t Au, 1.2% Pb, 1.1% Zn (recoveries of 71.7% Ag, 61.8% Au, 82.2% Pb, 37.7% Zn) to produce 740 K Oz Ag, 954 Oz Au, 4.1 M Lb Pb, 1.8 M Lb Zn. For 2017 Sierra Metals is aiming to produce with cash cost $1.08 and AISC $1.74 per copper equivalent pound at Bolivar, and cash cost $10.9, AISC $19.66 per silver equivalent ounce at Cusi.
  • Primero Mining Corp. released preliminary fourth quarter and full year 2016 results, which includes figures on its Mexican operations. At San Dimas, in Durango, 28,282 Oz Au were produced in the fourth quarter; to achieve 113,968 Oz Au on the full year, at cash cost $856 and AISC $1,117 per gold equivalent ounce.

ON FINANCING

  • Aura Silver Resources Inc. has closed the first tranche of its non-brokered private placement, for gross proceeds of $209 K (Taviche, Oaxaca).

ON RESOURCES AND DEVELOPMENT

  • Endeavour Silver Corp. reported updated NI-43-101 gold and silver resource estimates for its three operating mines in Mexico, and restated the resource estimates for its exploration properties. On its Guanceví (Durango), Bolañitos (Guanajuato), El Cubo (Guanajuato), Terronera (Jalisco) and Guadalupe y Calvo (Chihuahua) properties, consolidated silver-gold proven and probable reserves amount to 10.55 M Oz Ag, 91,100 Oz Au; measured and Indicated resources to 59.14 M Oz Ag, 483,400 Oz Au and inferred resources to 32.41 M Oz Ag, 296,600 Oz Au. On its Guanaceví (Durango) and Parral (Chihuahua) properties, consolidated silver-gold-lead-zinc indicated resources amount to 5.01 M Oz Ag, 50,300 Oz Au and inferred resources to 4.73 M Oz Ag, 39,400 Oz Au.
  • Almaden Minerals Ltd. released assay results from its exploration and development program at its Tuligtic project in Puebla. Results include intercepts like 8 .8 m @ 1.1 g/t Au, 51 g/t Ag; 34.2 m @ 1.1 g/t Au, 72 g/t Ag; 96 m @ 0.3 g/t Au, 41 g/t Ag; 38.6 m @ 1.1 g/t Au, 106 g/t Ag; 32.6 m @ 1.4 g/t Au, 44 g/t Ag; 105 m @ 1.2 g/t Au, 87 g/t Ag. Those intercepts confirm the existence of additional zones of veining immediately adjacent to the Ixtaca zone.
  • Geologix Explorations Inc. announced the results of a preliminary economic assessment (PEA) report on its Tepal gold/copper project in Michoacan. According to the report (using prices of $1,250/Oz Au, $2.50/Lb Cu and $18 Oz Ag), with a strip ratio of 0.6 : 1 and a mine life of 9.8 years to process 142.9 M tonnes @ 0.33 g/t Au for oxide ore and 0.45 g/t Au, 0.21% Cu for sulfide ore, the mine would produce 766 K Oz Au and 308 M Lb Cu at a rate of 78,572 Oz Au and 31.6 M Lb Cu per year, life of mine average (LOM). Capital requirements are $214 M for pre-production, $86.7 M for LOM sustaining and closure; LOM cash cost calculated at $313 and AISC $ 396 per gold equivalent ounce.
  • Mexus Gold US informed that ore is currently being loaded on the heap leach pad at its Santa Elena mine in Sonora. A larger crusher is being moved to the site to speed up the operation. Setup and install of the Merril Crowe recovery plant is now complete.
  • Compañía Minera Autlán S.A.B. d C.V. has the largest ore reserves of metallurgical grade manganese in North America, amounting to 250 M tonnes of ore (no grade specified). The Molango district in Hidalgo covers 1,250 square kilometers, and according to the USGS de most important deposits of metallurgical grade manganese in North America are in this area.

ON DEALS AND CORPORATE ISSUES

  • Orex Minerals Inc. has earned 55% ownership interest in the Sandra Escobar project in Durango, by paying Canasil Resources Inc. CAD $500 K and spending more than USD $2 M in exploration at the 6,976 has project. A joint venture has been formed; same that will be managed by a joint committee. Orex had the option to earn an additional 10% by paying $500 K to Canasil, and spending further $2 M on the project, Orex has notified Canasil that it will not proceed with the second option.
  • Americas Silver Corp. has been approved to list on the NYSE MKT stock exchange (Cosalá, Sinaloa).
  • Mexus Gold US. acquired the mining concessions comprising the San Felix property in Sonora, for undisclosed payments and terms. The Company also announces the execution of an agreement with MarMar Holdings Inc. whereby each company owns a 50% share of the San Felix Project and designates MarMar as the operator.

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

On the picture below, orogenic gold quartz vein fragment recovered by a gambusino from a placer in the Ojos Negros district, Baja California. The fragment is about two centimeters long.

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