The Mining and Exploration News in Mexico: Highlights on the Second Week of November 2022

By Jorge Cirett

During the 45th week of the year (November 7th to November 13th, 2022), 20 companies working in Mexico released news on their properties. One company declared commercial production, thirteen companies released Q3 2022 results and one company closed the final tranche of a private placement. Three companies presented drilling results or updated work at their advanced properties. Two companies signed a LOI on an acquisition proposal.  ON MEXICO ISSUES, no relevant news. ON EXPLORATION, no relevant news. ON MINING, SilverCrest Metals declared commercial production at Las Chispas, in Sonora. McEwen Mining, First Majestic Silver, Coeur Mining, Avino Silver & Gold Mines, Gatos Silver, Torex Gold, Fortuna Silver Mines, Pan American Silver, Golden Minerals, Endeavour Silver, Excellon Resources, Orla Mining and Americas Gold and Silver released Q3 2022 production results. ON FINANCING, Silver Viper Minerals closed an additional tranche of financing for $200 K. ON RESOURCES AND DEVELOPMENT, Guanajuato Silver Company released drill results from a new vein at El Cubo, in Guanajuato. Oroco Resource provided drill results from the South Zone at its Santo Tomás project in Sinaloa. Orla Mining updated on work at its Camino Rojo Sulphide deposit in Zacatecas aiming to evaluate its underground development options. ON DEALS AND CORPORATE ISSUES, Silver Viper Minerals and Canasil Resources signed a LOI on the proposed acquisition of the latter by Silver Viper. ON SOCIAL RESPONSIBILITY, Discovery Silver informed on awards received by its social responsibility work and achievements at the corporate and community levels.

ON MEXICO ISSUES

  • No Relevant News.

ON EXPLORATION

  • No Relevant News.

ON MINING

  • SilverCrest Metals Inc. declared commercial production on November 1, 2022 at Las Chispas mine in Sonora. During the commissioning period in September and October 62.1 K tonnes were processed at a rate of 1,019 tonnes per day (name plate design: 1,250 tpd), recovering 96.7% Au, 96.8% Ag. “Moving Las Chispas from discovery to production in less than seven years is a monumental achievement”.
  • McEwen Mining Inc. reported Q3 2022 results, with some information on its Mexican operations. A complete process plant was acquired for the Fenix project in Sinaloa, “This acquisition has made Fenix more attractive to build and could provide a new long life mine for McEwen Mining”.
  • First Majestic Silver Corp. released financial results for the third quarter 2022. During the period the company produced 2.7 M Oz Ag, 67,022 Oz Au (8.8 M Oz AgEq) at cash cost $13.34 per Oz AgEq and AISC of $17.83 per Oz AgEq. At the end of the quarter the company held cash and cash equivalents of $148.8 M and restricted cash of $101.2 M. The Table below shows the production in San Dimas (Durango), Santa Elena (Sonora) and La Encantada (Coahuila), which account for 83% of the company’s production.
  • Silver Viper Minerals Corp. closed an additional tranche of its non-brokered private placement announced in June 6 2022, for aggregate gross proceeds of $200 K (La Virginia, Sonora).

  • Coeur Mining Inc. reported third quarter 2022 financial results, including figures from its operations in Mexico. At Palmarejo, in Chihuahua, 538.7 K tonnes were milled @ 1.52 gpt Au, 110 gpt Ag, recovering 93.3% Au, 84.9% Ag to produce 24,807 Oz Au, 1.61 M Oz Ag at a cash cost of $948 per Oz Au and $12.67 per Oz Ag. Approximately 38% of Palmarejo’s gold sales were sold under its gold stream agreement at a price of $800 per Oz Au. “Full-year 2022 production is expected to be 100,000 – 110,000 ounces of gold and 6.0 – 7.0 million ounces of silver”.
  • Avino Silver & Gold Mines Ltd. released financial results for the third quarter 2022. At the Avino mine in Durango, 162.2 K tonnes were milled to produce 285.4 K Oz Ag, 1,202 Oz Au, 2.1 M Lb Cu, at cash cost $10.29 per Oz AgEq and an AISC of $17.32 per Oz Ag. The company has budgeted 15,000 m of drilling in 2022, focusing on the area at depth below the current Elena Tolosa mining area.
  • Gatos Silver Inc. reported operating financial results for Q3 2022. At Cerro Los Gatos mine, in Chihuahua, 263.3 K tonnes were milled @ 356 gpt Ag, 0.34 gpt Au, 2.38% Pb, 4.70% Zn, containing 2.70 M Oz Ag, 1,400 Oz Au, 12.2 M Lb Pb, 17.8 M Lb Zn and recoveries of 89.6% Ag, 48.9% Au, 88.5% Pb, 65.4% Zn. By the period’s end, the company had a cash balance of $15 M and debt outstanding of $13 M.
  • Torex Gold Resources Inc. reported financial and operational results for Q3 2022. At El Limón-Guajes, in Guerrero, 122,208 Oz Au were produced at cash cost $760 and an AISC of $1,059 per Oz Au. “Cash flow from operations totalled $102.4 million and $91.3 million prior to changes in non-cash operating working capital. Cash flow from operations includes $19.2 million of income taxes paid”. Expenditures at the adjacent Media Luna project totaled $32.5 M in the quarter, with a remaining project spend of $812.4 M. The needed Media Luna environmental permit (MIA) was approved by SEMARNAT.
  • Fortuna Silver Mines Inc. reported its financial and operating results for the third quarter of 2022, including figures from its Mexican operations. At the San José mine in Oaxaca, 267.2 K tonnes were milled at an average rate of 3,071 tonnes per day (tpd), grading 196 gpt Ag, 1.16 gpt Au, recovering 92% Ag, 91% Au to produce 1.54 M OZ Ag, 9,091 Oz Au at cash cost $9.70 per Oz AgEq and an AISC of $14.23. The net cash was affected by the “$12.6 million payment including taxes for the settlement of the disputed royalty claim with the Mexican Geological Survey”.
  • Pan American Silver Corp. reported results for the third quarter 2022, without expanding on figures by region.
  • Golden Minerals Co. provided financial results for Q3 2022. The Rodeo mine in Durango produced 2,972 Oz Au, 11.9 K Oz Ag with cash cost of $1,391 per Oz AuEq. At Velardeña, in Durango, evaluation of modified mine plans, including ore sorting technology.  At Yoquivo, in Chihuahua, a 5,693 m drill program in 24 holes was completed and is currently conducting a 3,000 m drill program, planning on the completion of a maiden resource estimate for Q1 2023. Golden ended the quarter with a cash balance of $6.5 M.
  • Endeavour Silver Corp. announced financial and operating results for Q3 2022. The company has the Guanaceví mine in Durango and the Bolañitos mine in Guanajuato. Consolidated production (no details provided) was 1.46 M Oz Ag, 9,194 Oz Au (2.2M Oz AgEq) at cash cost $10.32 per Oz Ag, and an AISC of $20.27 per Oz Ag. The company has a cash position of $69.2 M and $101.6 M in working capital. Work at the Terronera project in Jalisco includes “detailed engineering, critical contracts, procurement of long-lead items and road and camp construction…. Budgeted development expenditures for 2022 are estimated to be $41.0 million”. Also, during the period was completed the acquisition of the La Pitarrilla project in Durango and the sale of El Compas mine in Zacatecas.
  • Excellon Resources Inc. reported financial results for the Q3 2022. At Platosa, in Durango, 23.8 K tonnes were mined, 22.7 K tonnes milled @ 442 gpt Ag, 3.69% Pb, 3.14% Zn, recovering 92.5% Ag, 76.9% Pb, 78.9% Zn, to produce 298.1 K Oz Ag, 1.2 M Lb Pb, 1.24 M Lb Zn (459.8 K Oz AgEq), at cash cost $9.78 per Oz AgEq and an AISC of $14.31 per Oz AgEq. “Mine activity in Q3 2022 focused on remnant development and extraction, pillar recovery and minimal mining of fresh mineral. Wind down activities continued in Q3 to minimize the work associated with care and maintenance required in Q4 2022”.
  • Orla Mining Ltd. announced its results for the third quarter 2022. During the period the Camino Rojo Oxide project produced 28,876 Oz Au at cash cost $452 and all-in sustaining costs of $594 per Oz Au. The plant’s throughput averaged 19,200 tpd, or 107% of nameplate capacity. By the end of the period the company held $89.1 M in cash and a net debt of $77.5 M.
  • Americas Gold and Silver Corp. reported financial and operational results, including figures from its Mexican operations. At Cosalá, in Sinaloa, 186 K Oz Ag, 9.4 M Lb Zn, 3.8 M Pb were produced. “Cash costs per silver ounce and all‐in sustaining costs per silver ounce were negative $4.43 and positive $4.35, respectively”.

ON FINANCING

  • Silver Viper Minerals Corp. closed an additional tranche of its non-brokered private placement announced in June 6 2022, for aggregate gross proceeds of $200 K (La Virginia, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Guanajuato Silver Company Ltd. provided drill results that confirm a new transverse vein at El Cubo mine in Guanajuato. Highlighted true width intervals comprise 0.85 m @ 3.54 gpt Au, 398 gpt Ag; 1.29 m @ 0.79 gpt Au, 102 gpt Ag; 0.90 m @ 0.82 gpt Au, 112 gpt Ag; 0.92 m @2.15 gpt Au, 278 gpt Ag; 1.28 m @1.70 gpt Au, 205 gpt Ag. “The San Luis vein runs perpendicular to the primary regional north-west Villalpando and Dolores mineralized vein structures, and like other transverse veins at El Cubo, the San Luis vein is anticipated to often carry proportionally higher gold content”.
  • Oroco Resource Corp. released assay results for three holes testing the South zone at its Santo Tomás project in Sinaloa. The total strike length of mineralization extends now for 3.2 Km, with 0.5 km more open for extension to the south. Highlighted core length intervals comprise 271 m @ 0.33% Cu, 0.029 gpt Au, 2.6 gpt Ag; 34 m @ 0.26% Cu, 0.9 gpt Ag; 140 m @ 0.23% Cu, 1.8 gpt Ag; 277.4 m @ 0.36% Cu, 0.026 gpt Au, 2.6 gpt Ag. Twelve holes have been completed to date on the South zone and 41 holes (27,004 m) in the North zone.
  • Orla Mining Ltd. updated on work at its Camino Rojo Sulphide project in Zacatecas (below its Camino Rojo Oxide project currently in production). Previous operators envisioned a large open pit mining scenario for disseminated low-grade sulfides, with high capital costs for a large processing facilities and extensive material handling. Orla has been assessing the existence of higher-grade smaller ore shoots with the potential to sustain a more targeted underground development. Drilling has intercepted mineralization grading more than 2 gpt Au over more than 30 m in the five holes with results so far.

ON DEALS AND CORPORATE ISSUES

  • Silver Viper Minerals Corp. and Canasil Resources Inc. entered into a non-binding letter of intent in November 6, 2022, with respect of the proposed acquisition by Silver Viper of all outstanding shares of Canasil, in exchange for common shares of Silver Viper. Canasil shareholders will receive one (1) common share of Silver Viper by for every four (4) Canasil shares held. At the closing of the proposed transaction Canasil will have the right to nominate one member of the board of directors of Silver Viper. Furthermore, Silver Viper will be required to complete a financing for at least C$1 M and Canasil a financing for at least C$260 K. Silver Viper holds La Virginia project in Sonora, whereas Canasil owns the Sandra, Nora, Vizcaino, Salamandra and Colibri projects in Durango, and the La Esperanza project in Zacatecas.

ON SOCIAL RESPONSIBILITY

  • Discovery Silver Corp. received its official ESR Distinction, issued by the Mexican Center for Philanthropy “to organizations that have demonstrated they operate in a socially and environmentally responsible manner”. The company also received the Great Place to Work Certification, the Clean Industry Certification emitted by PROFEPA (Federal Attorney’s Office for Environmental Protection) and the Safe Industry Certification Level 1 issued by the Mexican Government’s Secretary of Labor.

On the image below Quartz veinlet stockwork in limestone on a project in the Sonoran Desert. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the Fourth Week of October 2022

By Jorge Cirett

During the 43rd week of the year (October 24th to October 30th, 2022), 17 companies working in Mexico released news on their properties. Three companies posted exploration advances on their projects, three companies released Q3 2022 results, one company closed the first tranche of a private placement, one is newly trading at another Stock Exchange and one more expanded on the deferment of payment on the acquisition of a mine. Three companies presented Q3 2022 results. Six companies presented drilling results on their advanced properties. One Company is acquiring a large adjoining land package adjacent to its project and one more expanded on a legal suit regarding the illegal transfer of several of its mining concessions.  ON MEXICO ISSUES, mining companies at the BMV are taking a pounding due to reduced production, inflation and lower metal prices. The AIMMGM is asking the government for increase security and raised the danger of explosives theft. ON EXPLORATION, in Sonora, Aztec Minerals released drilling results from its Cervantes project; Colibri Resource resumed exploration at Evelyn. In Nayarit, Angel Wing Metals updated on exploration at El Grande. ON MINING, Mag Silver, Agnico Eagle Mines and Alamos Gold released Q3 2022 production results. ON FINANCING, Capitan Mining closed the first tranche of its non-brokered private placement for $2.6 M gross proceeds. Guanajuato Silver Company is now on the Apex segment of the Aquis Stock Exchange. Bear Creek Mining reached an agreement to defer the payment of the Mercedes mine in Sonora for two years. ON RESOURCES AND DEVELOPMENT, Prime Mining released drilling results from Los Reyes in Sinaloa. Oroco Resources presented assays from drilling at Sant Tomás, in Sinaloa. Silver Tiger presented results from drilling El Tigre and Sooy veins at El Tigre, in Sonora. Vizsla Silver reported results from 12 holes on La Luisa vein at its Panuco project in Sinaloa. Defiance Silver updated on the drill program at the Veta Grande vein system of the Zacatecas Silver project in Zacatecas. Silver Dollar reported the last assays from drilling of La Noria zone at La Joya project in Durango . ON DEALS AND CORPORATE ISSUES, Angel Wing Metals entered into a binding agreement to acquire a large land package adjacent to its El Grande project in Nayarit. Defiance Silver initiated a case “against the illegally and fraudulently transferred mineral concessions concerning its Tepal Project” in Michoacan. ON SOCIAL RESPONSIBILITY, Agnico Eagle and Alamos Gold presented information on their social responsibility work and achievements at the corporate and community levels.

ON MEXICO ISSUES

  • Mining companies in the BMV (Bolsa Mexicana de Valores) had a negative Q3 2022 due to inflation and lower metal prices. Grupo México reported a 34.7% year to year fall in Q3 2022 of EBITDA and a 24.4% decline in share price to a 6.6% reduction in copper production and a 18.6% drop in the red metal price. Total copper production was 256.3 K tonnes in the period. Industrias Peñoles EBITDA is 18.5% lower in the same period, as well as a 10.9% drop in the share price.
  • The AIMMGM (Asociación de Mineros, Metalurgistas y Geólogos de México) asked for government intervention to increase security on their operations. States with the strongest mining tradition like Chihuahua, Estado de México, Guerrero, Guanajuato, Sonora and Zacatecas are among those with greater insecurity perception ratings. Companies in some states spend up to 2% of their total budget in security, and some companies have reported to the government their compliance with racketeering schemes to be able to operate. The risk posed by the increase in the theft of explosives was also raised.  

ON EXPLORATION

  • Aztec Minerals Corp. completed the phase 3 core drilling program at the Cervantes project in Sonora. Eleven core hole totaled 2,515.5 m of drilling at the California, California North and Jasper targets. Highlighted core length results comprise 9.0 m @ 1.72 gpt Au; 16.5 m @ 0.34 gpt Au; 26.7 m @ 0.54 gpt Au, 7.5 m @0.43 gpt Au; 46.5 m @ 0.44 gpt Au; 5.65 m @0.25 gpt Au. “… the gold mineralization appears to be widely distributed in disseminations, fractures and veinlets at high levels within in a Quartz-feldspar porphyry intrusive complex and related hydrothermal breccias”.
  • Angel Wing Metals Inc. updated on the exploration program at El Grande project after the acquisition of the adjoining La Reyna land package in Nayarit (See Deals and Corporate Issues below). “The first phase of greenfield exploration has focused on the near surface low sulphidation exploration potential, starting with regional geological mapping and prospecting, structural and alteration mapping, outcrop chip and channel sampling rock sampling, and environmental baseline studies. Detailed mapping and sampling of selected targets are prioritised for grid soil and outcrop sampling programs and drilling…. An airborne geophysical survey is proposed with follow-up ground geophysics on selected targets pending receipt of permits. The results from this work will be used to design a Phase One 3,000 metre diamond drill program to commence in late Q4 2022 or Q1 2023, once updated drill permits including the newly acquired claims are received.
  • Colibri Resource Corp. has resumed exploration at its Evelyn property in Sonora. Soil samples are currently being collected by geologists on site, and an application for drilling and trenching was submitted to SEMARNAT. One program of reverse circulation (RC) drilling comprises 2,000 m in five holes to test a chargeability and resistivity anomalies and a second program is to explore under alluvial cover, comprising several short, closely spaced holes to penetrate the alluvium and sample the top of the bedrock

ON MINING

  • Mag Silver Corp. reported third quarter 2022 production from the Juanicipio project (56% Fresnillo PLC, 44% Mag Silver) in Zacatecas. On a 100% basis, 180.8 K tonnes of underground development and initial stopes were processed during the period, to produce 2.62 M Oz Ag, 5,422 Oz Au (Mag’s attributable 44% interest: 1.15 M OZ Ag, 2,386 Oz Au). “Mineralized material from Juanicipio continues to be processed through the nearby Saucito (70%) and Fresnillo beneficiation plants (30%) which are owned by Fresnillo PLC.
  • Agnico Eagle Mines Ltd. released third quarter results, including figures from its operations in Mexico. At Pinos altos, in Chihuahua, 378 K tonnes were processed at a rate of 4,109 tonnes per day (TPD), grading 1.98 gpt Au to produce 23,041 Oz Au at a production cost of $1,498 per OZ Au and total cash cost of $1,295 per Oz Au. Exploration drilling confirmed the existence of a high-grade block 100 m below the lowest production level at Pinos Altos, with a reported drill intercept of 11.6 m @ 3.1 gpt Au, 122 gpt Ag. At the Cubiro deposit under development, 9.2 m @ 3.3 gpt Au were intercepted in the western limits of the main Cubiro Corridor. At La India, in Sonora, 1.04 M tonnes were processed at a rate of 11,359 TPD, grading 0.72 gpt Au at a production cost of $1,246 per Oz Au and a total cash cost of $1,196 per Oz Au. “In the third quarter of 2022, the Main Zone pit was depleted and ore production transitioned to the La India and El Realito pits, resulting in higher gold grades and a higher stripping ratio”.
  • Alamos Gold Inc. reported its financial results for the Q3 2022, including figures from its Mexican operations. At Mulatos, in Sonora, 42,700 Oz Au were produced at total cash cost $1,781 per Oz Au and mine site AISC of $1,137 per Oz Au, with a capital expenditure of $6.9 M. At the Mulatos mine 759.3 K tonnes were mined and 1.57 M tonnes of waste moved (2.07 waste to ore ratio), with 1.27 M tonnes stacked @ 0.75 gpt Au (30,916 Oz Au stacked, 56% Au recovery rate) and 14 K tonnes crushed per day. At La Yaqui Grande 739 K tonnes were mined, 5.3 M tonnes of waste moved, 794 .1 K tonnes @ 1.23 gpt Au were stacked (31,362 Oz Au stacked, 81% Au recovery) and 8.7 K tonnes crushed per day. “La Yaqui Grande is an open pit mine with an independent leach pad located approximately seven kilometres from the existing Mulatos operation….  La Yaqui Grande performed well in its first full quarter of operation, producing 25,300 ounces of gold”.

ON FINANCING

  • Capitan Mining Inc. closed the first tranche of the previously announced $3.2 M non-brokered private placement for total proceeds of $2.6 M. The second tranche for total proceeds of $600 K is expected to close on or before the end of October (Cruz de Plata, Durango).
  • Guanajuato Silver Company Ltd. completed its admission to the Apex segment of the Aquis Stock Exchange, whilst continuing to trade on the TSX Venture Exchange (El Cubo and Valenciana, Guanajuato).
  • Bear Creek Mining Corp. reached a “heads of agreement” with Equinox Gold Corp. to amortize over a two-year period the payment of the final $25 M purchase price installment for the Mercedes mine in Sonora. The payment that was to be made on October 2022 has been converted in a promissory note maturing on October 2024, with monthly principal and interest payments commencing in February 2023, with an interest rate of 12.5% plus the greater of 2.5% or the 90-day average SOFR and monthly payments of US$500 K or 50% of free cash flow (Mercedes, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Prime Mining Corp. announced further phase 2 drill results from the Guadalupe area of the Los Reyes project in Sinaloa. Highlighted true width (TW) intercepts comprise 11.8m @ 2.7 gpt Au, 88 gpt Ag (including 2.2 m @ 27.9 gpt Au, 509 gpt Ag); 17.0 m @ 1.7 gpt Au, 59 gpt Ag (including 5.8 m @ 4.9 gpt Au, 176 gpt Ag); 12.2 m @ 1.7 gpt Au, 140 gpt Ag; 3.5 m @ 4.9 gpt Au, 614 gpt Ag (including 0.6 m @ 23.2 gpt Au, 2,550 gpt Ag); 1.9 m @ 6.08 gpt Au, 913 gpt Ag. “Reported intercepts are up to 100 m to the west, 240 m to the east, and 100 m below the 2020 pit-constrained resource”.
  • Oroco Resource Corp. released assay results from an additional 2,668 m of drilling in the North zone and 1,456 m in the Brasiles zone of its Santo Tomás project in Sinaloa. Highlighted core length intervals comprise 195.2 m @ 0.41% Cu; 117.8 m @ 0.22% Cu; 132.0 m @0.40% Cu; 36.0 m @ 0.20% Cu; 106.1 m @ 0.31% Cu; 211.6 m @ 0.41% Cu; 133.0 m q 0.17% Cu; 159.6 m @ 0.32% Cu; 228.0 m @ 0.31% Cu. “The 2021-2022 North Zone drill program is continuing to confirm and expand the 2009 Gradeshell model of Cu >0.30%” in the 2019 technical report, with a total of 38 holes now completed on the North zone spanning 1,400 of strike length.
  • Silver Tiger Metals Inc. presented results from drilling the El Tigre and Sooy veins at El Tigre project in Sonora. Highlighted core length intervals comprise 0.5 m @ 1.46 gpt Au, 1,320 gpt Ag; 5.4 m @ 220 gpt Ag; 10.7 m @ 120 gpt Ag (including 1.1 m @550 gpt Ag); 20.5 m @42 gpt Ag; 1.6 m @ 0.28 gpt Au, 528 gpt Ag; 0.5 m @ 991 gpt Ag; 5.9 m @ 0.10 gpt Au, 678 gpt Ag (including 1.0 m @0.37 gpt Au, 2,754 gpt Ag; 36.4 m @ 0.13 gpt Au, 42 gpt Ag; 3.1 m @211 gpt Ag; 9.4 m @ 0.19 gpt Au, 641 gpt Ag; “These next three wide consistently mineralized high grade holes confirm the new discovery in the El Tigre Vein we first reported in September 2022. Drilling continues on this exploration target under the unmined portion of the Historic El Tigre Mine as we follow this wide high grade along strike to the North.”
  • Vizsla Silver Corp. reported results from 12 holes targeting the La Luisa vein, close to the Napoleon vein, at its Panuco project in Sinaloa. Highlighted true width intervals comprise 6.13 m @ 133 gpt Ag, 3.68 gpt Aum 0.2% Pb, 0.3% ZN (including 0.68 m @ 595 gpt Ag, 27.50 gpt Au, 0.5% Pb, 0.6% Zn); 2.59 m @ 197 gpt Ag, 4.60 gpt Au, 0.2% Pb, 0.4% Zn (including 0.57 m @ 596 gpt Ag, 18.50 gpt Au, 0.6% Pb, 0.9% Zn); 1.00 m @ 49 gpt Ag, 2.90 gpt Au, 0.2% Pb, 0.7% Zn; 3.44 m @ 77 gpt Ag, 1.11 gpt Au; La Luisa vein structure has been mapped for almost 1 Km hosted in rhyolite tuffs and “bears vein-textures indicative of being at higher-levels in the epithermal profile …… there exists the potential for increased grades and widths along strike and down plunge to the south”.
  • Defiance Silver Corp. updated on the drill program at the Veta Grande vein system of the Zacatecas Silver project in Zacatecas. Highlighted core length results comprise 10.16 m @ 0.70 gpt Au, 121 gpt Ag, 0.7% Pb, 2.9% Zn (or 339 gpt AgEq, including 3.38 m @ 1.96 gpt Au, 345 gpt Ag, 2.2% Pb, 8.0% Zn, which includes 0.9 m @ 4.18 gpt Au, 868 gpt Ag, 4.6% Pb, 17.0% Zn); 2.0 m @ 0.51 gpt Au, 121 gpt Ag, 1.4% Pb, 4.8% Zn; 1.94 m @ 0.62 gpt Au, 29 gpt Ag, 0.4% Pb, 1.1% Zn; 2.19 m @ 0.29 gpt Au, 79 gpt Ag, 0.2% Zn. These results confirm the continuity of mineralization below the 2014 mineral resource. “The highest-grade silver mineralization at the San Acacio project is typically associated with honey-coloured sphalerite, argentiferous galena, variable silver sulfides and sulfosalts, and spatially correlated with amethyst”.
  • Silver Dollar Resources Inc. reported final assays from phase II drilling at the Noria portion of the La Joya project in Durango. Highlighted core length results comprise 25.44 m @ 21 gpt Ag, 0.08 gpt Au, 0.17% Cu, 0.2% Zn; 3.86 m @ 72 gpt Ag, 0.11 gpt Au, 0.09% Cu, 0.5% Zn; 1.29 m @ 304 gpt Ag, 0.68 gpt Au, 1.8% Pb, 5.3% Zn; 2.88 m @ 52 gpt Ag, 0.14% Cu, 0.1% Pb, 0.5% Zn; 3.0 m @ 2.3% Zn; 1.50 m @ 20.60% Zn; 0.66 m @ 43 gpt Ag, 2.1% Pb, 5.8% Zn; 6.67 m @ 63 gpt Ag, 0.10 gpt Au, 0.18% Cu, 0.3% Pb, 1.0% Zn.

ON DEALS AND CORPORATE ISSUES

  • Angel Wing Metals Inc. entered into a binding agreement with a private entity to acquire 100% interest in the 102.87 square Km La Reyna property land package in six titled concessions adjoining the El Grande project, and cover the Aguila de Oro (Golden Eagle) mining district in Nayarit. Angel Wing Metals Is to make a total payment of US$700 K, of which US$150 K have been paid upon signing, US$150 K have been paid upon filing of the agreement at the Public Registry of Mining in Mexico (Registro Público de Minería), and US$400 K to be paid upon positive resolution on the agreement by the Public Registry of Mining. A further payment of US$50 K will be due upon the identification of each 1.0 M OZ Au in the measured and indicated categories of a mineral resource on a NI43-101 technical report, and a 1.5% net smelter return (NSR) royalty with Angel Wing Metals retaining the right of first refusal to purchase the royalty for US$2.0 M.
  • Defiance Silver Corp. announced “that the case initiated against the illegally and fraudulently transferred mineral concessions concerning its Tepal Project” in Michoacán, has been admitted for trial by a District Court in Michoacán. The mineral concessions have to “stay” until the trial concludes and a final judgement is rendered. The Mexican Mining Public Registry has been informed. “Defiance has a substantial likelihood of success on the merits. Mexican Law, Mexican Precedents, and Mexican Courts are consistent in declaring null and void illegal transfers made fraudulently”.

ON SOCIAL RESPONSIBILITY

  • Agnico Eagle Mexico was awarded 17th place among the Top 100 of the best companies to work for in Mexico by Great Place to Work®. La India mine in Sonora received the “Distinction of Socially Responsible Company” distinction “granted by the Mexican Center for Philanthropy (Centro Mexicano para la Filantropía) and the Foundation for Sustainability and Equity (Alianza por la Responsabilidad Social Empresarial en México) to recognize companies for their commitment to ensuring the well-being of employees, operating with superior business ethics, community outreach and environmental care and preservation”.
  • Alamos Gold Inc. held information sessions on the company’s cyanide management practices with the communities of Yécora, El Trigo and Matarachi, Sonora, within the framework of the International Cyanide Management Code. An ambulance was donated to the Sahuaripa municipality, an online high school was established at Matarachi through an agreement with the Tec de Monterrey. Two freshwater pumping stations were set at Matarachi. New scholarship committees established in Matarachi, Sahuaripa and Yécora as part of the Company’s continued support for local students.

On the image below Late milky white quartz veinlets cross cutting previous quartz-specularite veining in the Sonoran Desert. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the Second Week of October 2022

During the 41st week of the year (October 10th to October 16th, 2022), 15 companies working in Mexico released news on their properties. Three companies posted exploration advances on their properties, six companies released Q3 2022 results, one company is to undertake a private placement and one more expanded on the maturity extension of convertible debentures and three companies released drilling results from their advanced properties.  ON MEXICO ISSUES, no relevant news. ON EXPLORATION, in Sonora, Regency Silver released drilling results from the Dios Padre property, including great results from a hole testing a geophysical anomaly 500 m from the historic resource. Prismo Metals updated on the drilling program and sampling protocol at Palos Verdes. In Durango, Silver Wolf updated on exploration at its Ana Maria project. ON MINING, Endeavour Silver, Torex Gold, GoGold Resources, Orla Mining, Gatos Silver and Gold Resource released Q3 2022 production results. ON FINANCING, Sonoro Resource is to undertake a financing round for C$525 K. Barksdale Resources extended the maturity date of convertible debentures with a remaining principal amount of $1.5 M.  ON RESOURCES AND DEVELOPMENT, Avino Silver and Gold Mines released drilling results from its Avino mine in Durango. Prime Mining provided drilling results from Los Reyes property, in Sinaloa. Vizsla Silver reported drilling results from the southern part of the Napoleon vein at its Panuco project in Sinaloa. ON DEALS AND CORPORATE ISSUES, no relevant news. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • No Relevant News.

ON EXPLORATION

  • Prismo Metals Inc. updated on the drill program at its Palos Verdes project in Sinaloa. A total of 1,062 m have been drilled of the planned minimum 2,000 m. Three holes have been completed and one is in progress testing the Palos Verdes vein and a structural intersection. By analyzing Vizsla’s Silver recent drill data on the adjacent Panuco project, a new sampling protocol has been implemented, including wallrocks with quartz veining. Several long intervals of the past drilling campaign will be also sent to the lab.
  • Regency Silver Corp. released results from the first 12 holes at its Dios Padre property in Sonora. The highlighted core length interval of the first hole on a geophysical anomaly 500 m north of the historic resource comprise 53.8 m @ 4.7 gpt Au (including 35.8 m @ 6.84 gpt Au, 22 gpt Ag, 0.88% Cu and 9.8 m @ 13.97 gpt Au, 50 gpt Ag, 1.11% Cu) starting at 420 m depth. Au-Cu-Ag mineralization in this hole is largely breccia hosted, with pyrite and chalcopyrite forming the breccia matrix. “The core of the mineralized zone sits within and adjacent to a felsic intrusive body, though mineralization is present both within the felsic unit as well as the host andesites. Both rock units are strongly altered to white mica with some silica”. The hole was stopped due to the 500 m maximum capacity of the rig being used. Highlighted intervals were released by element, comprising 60 m @ 0.33% Cu; 52 m @ 0.69% Cu (including 33 m @ 0.94% Cu) and 29.3 m @ 0.36 gpt Au; 6 m @ 0.68 gpt Au; 53.8 m @ 4.7 gpt Au; 21.5 m @ 0.53 gpt Au; 4.2 m @ 2.1 gpt Au; 49.65 m @ 0.58 gpt Au; 10 m @ 0.57 gpt Au; 17.9 m @ 1.34 gpt Au; 23.65 m @ 0.36 gpt Au and 26.3 m @ 63 gpt Ag;  (including 4.3 m @ 317 gpt Ag); 60 m @ 19 gpt Ag; 8 m @ 60 gpt Ag; 18 m @ 14 gpt Ag; 8 m @ 67 gpt Ag; 12 m @ 45 gpt Ag; 17.5 m @ 135 gpt Ag (including 3.9 m @ 582 gpt Ag); 2.2 m @ 220 gpt Ag; 10.95 m @ 302 gpt Ag; 6.95 m @ 336 gpt Ag; 18.55 m @ 50 gpt Ag; 7.5 m @ 113 gpt Ag; 3.1 m @ 420 gpt Ag; 21.5 m @ 137 gpt Ag; 9.6 m @ 56 gpt Ag; 1 m @ 603 gpt Ag; 37.4 m @ 110 gpt Ag (including 19.65 m @ 203 gpt Ag).
  • Silver Wolf Exploration Ltd. reported on exploration at its 2,500 hectares Ana Maria property in Durango. Two main targets are being defined using a carbonate replacement deposit (CRD) model. The central claim block hosts a gold skarn type showing, while the southern claim block is distal to the intrusive, hosting CRD Ag-Zn-Pb prospects and historical small mines. “Continued work on the central claims include a reinterpretation of geophysical results to fine tune the magnetics data and further identify the intrusive contacts with the surrounding limestone at depth”.

ON MINING

  • Endeavour Silver Corp. reported third quarter 2022 production results, with 202.7 K tonnes processed at a daily rate (tpd) of 2,204 tonnes grading 248 gpt Ag, 1.60 gpt Au to produce 1.46 M Oz Ag, 9,194 Oz Au. At Guanaceví, in Durango, 97.7 K tonnes were processes at 1,062 tpd, grading 468 gpt Ag, 1.29 gpt Au with a recovery of 90.6% Ag, 89.9% Au to produce 1.33 M Oz Ag, 3,642 Oz Au. At Bolañitos, in Guanajuato, 105 K tonnes were processed at 1,141 tpd, grading 43 gpt Ag, 1.88 gpt Au with a recovery rate of 87.0% Ag, 87.5% Au, to produce 126.3 K Oz Ag, 5,552 Oz Au. Positive drilling results have been received from Guanaceví and Parral, extensive due diligence work continues at Terronera (Jalisco) and the El Compas property and plant were sold for $5 M over five years.
  • Torex Gold Resources Inc. reported Q3 2022 gold production from its El Limón Guajes mining complex in Guerrero. During the period 9,600 tonnes per day (tpd) were mined by open pit and 1,550 tpd from underground, processing an average of 13 K tonnes to produce 122,200 Oz Au.
  • GoGold Resources Inc. reported production for the quarter ending on September 30, 2022. At the Parral tailings project in Chihuahua, 145.9 K Oz Ag, 2,278 Oz Au, 124 tonnes Cu were produced during the period. “The Company had $20M USD in input tax recoverable which related to VAT receivable from the Mexican Federal Government for the years of 2017 to 2022. The Company received $11M which related to 2017 and 2018 which included interest of $5M. Management continues to work with the tax authority on the remaining claims and expects to receive these amounts in due course”.
  • Orla Mining Ltd. provided an interim operational update for the third quarter of 2022. At Camino Rojo in Zacatecas, 4.13 M tonnes were mined, of which 1.74 M tonnes @ 0.88 gpt Au were processed, 0.43 M tonnes @ 0.32 gpt Au were stockpiled (19,200 tonnes per day), and 1.96 M tonnes of waste moved (Strip ratio 0.91), to produce 28,876 Oz Au.
  • Gatos Silver Inc. announced production results for the third quarter 2022 from its 70% owned Cerro Los Gatos property in Chihuahua. During the period 263.3 K tonnes were milled at a rate of 2,862 tpd averaging 356 gpt Ag, 0.34 gpt Au, 2.38% Pb, 4.70% Zn. Recovering 89.6% Ag, 48.9% Au, 88.5% Pb, 65.4% Zn to produce 2.70 M Oz Ag, 1,400 Oz Au, 12.2 M Lb Pb, 17.8 M Lb Zn. “The Company had a cash balance of $15 million and debt outstanding of $13 million related to our credit facility as of September 30, 2022”, and “anticipates completing an impairment assessment based on the 2022 Mineral Reserve in the fourth quarter of 2022 and is working towards completing all outstanding SEC and OSC filings as soon as practicable”.
  • Gold Resource Corp. announced preliminary results in Q3 2022. At the Don David mine in Oaxaca, 110.7 K tonnes were milled (1,361 tpd), averaging 1.98 gpt Au, 80 gpt Ag, 0.37% Cu, 1.59% Pb, 4.21% Zn, to produce 5,851 Oz Au, 261.2 K Oz Ag, 296 tonnes Cu, 1,249 tonnes Pb, 3,901 tonnes Zn. 

ON FINANCING

  • Sonoro Gold Corp. is to undertake a non-brokered private placement offering for gross proceeds of up to C$525 K (Cerro Caliche, Sonora).
  • Barksdale Resources Corp. has finalized the extension of the maturity date of the secured convertible debentures administered by Delbrook Capital Advisors Inc. by one year until December 31, 2023. “The Debentures have a remaining principal amount of $1,500,000 and all other terms of the Debentures remain unchanged except for the conversion price, which has increased to $0.55 per share from $0.45 per share”. Approximately $99 K of accrued interest will be exchanged for 206.6 K shares units consisting of one share and one-half of common share purchase warrant. An extension fee of 2.78 M common share purchase warrants at a price of $0.72 exercisable up to December 2023 was agreed (San Javier, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Avino Silver & Gold Mines Ltd. released drilling results from six holes completed below the current Level 17 mining area at the Elena Tolosa area of the Avino mine in Durango. Highlighted true width (TW) intercepts comprise 26.77 m @ 0.15 gpt Au, 50 gpt Ag, 0.71% Cu; 43.80 m @ 0.15 gpt Au, 15 gpt Ag, 0.49% Cu; 10.90 m @ 0.06 gpt Au, 25 gpt Ag, 1.05% Cu; 9.95 m @ 0.25 gpt Au, 17 gpt Ag, 0.40% Cu; 14.40 m @ 0.17 gpt Au, 30 gpt Ag, 0.19% Cu. These drilling results demonstrate the continuity of grade and thickness of the mineralization currently being mined at the lowest level of the mine. The company is developing a geological model based on a near porphyry environment, supported by the grade continuity over 600 m vertically and base metal zonation.
  • Prime Mining Corp. announced results from five holes in the Z-T area of the Los Reyes property in Sinaloa. Highlighted true width intercepts comprise 13.2 m @ 2.36 gpt Au, 178 gpt Ag; 7.40 m @ 0.91 gpt Au, 139 gpt Ag; 5.60 m @ 3.86 gpt Au, 89 gpt Ag; 5.30 m @ 1.17 gpt Au, 207 gpt Ag. Five rigs have completed 70,590 m of drilling in this phase 2 campaign that is planned to continue to the end of October, while results for 93 holes remain pending.
  • Vizsla Silver Corp. reported results from 12 holes targeting the southern extension of the Napoleon vein at its Panuco project in Sinaloa. Highlighted true width (tw) intervals comprise 1.0 m @ 1.60 gpt Au, 2,642 gpt Ag, 1.9% Pb, 4.1% Zn; 1.0 m @ 3.63 gpt Au, 740 gpt Ag; 0.2% Pb, 1.2% Zn; 1.86 m @ 0.6 gpt Au, 354 gpt Ag, 0.2% Pb, 0.5% Zn; 1.81 m @ 3.12 gpt Au, 1,268 gpt Ag, 0.2% Zn; 0.91 m @ 5.77 gpt Au, 320 gpt Ag, 0.5% Pb, 1.3% Zn. “The new drill holes report high grade silver and gold intercepts from the footwall vein splays and further support grade continuity to the south along the main Napoleon Vein”.

ON DEALS AND CORPORATE ISSUES

  • No Relevant News.

ON SOCIAL RESPONSIBILITY

  • No Relevant News.

On the image below Banded quartz-calcite veinlet in the Sonoran Desert. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the First Week of October, 2022.

Banded Quartz

By Miguel A Heredia

During the 40th week of the year (October 03rd to October 09th, 2022), at least 20 press releases were announced by companies working in Mexico, and 4 news published by the media with seven reporting resources and developments of their properties, four announcing financing issues, four discussing social issues, three informing on exploration results, two communicating production and financial results, two commenting on Mexican issues, and two discussing deals and corporate issues. ON MEXICO ISSUES, The Discoveries Mining Conference 2022 was held in Hermosillo, Sonora on October 4-6, 2022. The Governor of Guerrero, Evelyn Salgado announced the reinstatement of the State Mining Council and confirmed that Acapulco will host the 35th edition of the Mining Convention in 2023. ON EXPLORATION, In Sonora, Canuc reported that recent work at its San Javier project has identified eight targets within four distinct mineralized zones.  In Durango, Orex announced the completion of the Phase-1 reconnaissance exploration drilling program on its Sandra project.  In Oaxaca, Vortex provided an update of the exploration work completed to date at its Riqueza Marina project.  ON MINING, Bear Creek presented Q3, 2022 production results from its Mercedes mine in Sonora. Guanajuato Silver provided an update highlighting the impact of additional production from the Topia and San Ignacio mines in Durango and Guanajuato states respectively. ON FINANCING, Advance Lithium closed a previously announced private placement financing for gross proceeds of $75K (Sarape project, Sonora). Capitan Mining announced a non-brokered private placement for gross proceeds of up to CAD $3M (Cruz de Plata project, Durango). Guanajuato Silver has arranged to issue 2,468,750 common shares of the company in settlement of outstanding accounts payable and accrued liabilities to various parties totaling approximately CAD $987K (Pinguico mine, Guanajuato).  Barksdale announced that Teck Resources has elected to exercise its pro-rata equity participation rights for gross proceeds of $264K (San Javier project, Sonora).   ON RESOURCES AND DEVELOPMENT, Azucar Minerals completed second hole into the large porphyry lithocap target at its El Cobre project in Veracruz. Gatos Silver provided updates on its Cerro Los Gatos Mineral Resources, Mineral Reserves, and Life of Mine. Minera Alamos announced positive results of an independent Preliminary Economic Assessment (PEA) for its Cerro de Oro project in Zacatecas. Oroco announced that, based on drill results, expanded the North Zone mineralization, and confirmed higher grade at its Santo Tomas project in Sinaloa.  Tarachi Gold received final metallurgy results for its Magistral Mill and Tailings project in Durango. Torex received key environmental permit for its Media Luna project in Guerrero. Prime Meridian provided an update on its La Verde project in Michoacan. ON DEALS AND CORPORATE ISSUES, Starcore announced results of its annual general meeting of shareholders (San Martin mine, Queretaro). Riverside regained 100% control of the La Union project in Sonora after Hochschild announced its decision to not to proceed with the option. ON SOCIAL RESPONSIBILITY, Peñoles and Fresnillo Plc work together for an appropriate and healthy habitat. Peñoles and Fresnillo Plc were awarded with a distinction in Ethics and Values ​​of the Industry 2022. GoGold presented its second annual sustainability report that sets out the company´s performance and achievements with respect to its environmental, social, and governance practices. MAG Silver announced the publication of its inaugural Sustainability Report.

ON MEXICO ISSUES

  • The Discoveries Mining Conference 2022 was held in Hermosillo, Sonora on October 4-6, 2022, and included more than 50 talks covering topics ranging from the latest geological discoveries, new technologies applied to mining and exploration, social, legal and political issues affecting the industry, and the challenges and obstacles confronted and overcome on the way to production.
  • The Governor of Guerrero, Evelyn Salgado announced the reinstatement of the State Mining Council and confirmed that Acapulco will host the 35th edition of the Mining Convention in 2023. She also recognized this industry, which each year leaves an approximate spill of MXP $3,400M. The Governor pointed out that the mining sector is one of the main economic activities in Guerrero, which has a presence in 29 municipalities in the Central, Tierra Caliente and North regions of the state, with an important gold production that places the entity in the first places. She stressed that the mining industry in Guerrero generates more than 4,500 direct jobs and more than 22,000 indirect jobs, with an economic benefit of more than MXP $3,400M, which translates into development and well-being, for which she urged that the Mining Council in Guerrero, be a space for dialogue and consensus that allows the construction of shared strategies and programs hand in hand with the various sectors with a comprehensive perspective seeking the development of Guerrero. In addition, she declared that Guerrero is the state of the country with the largest investment announced for this year for more than USD $1,327M for new mining projects, estimating growth with a favorable environment.

ON EXPLORATION

  • Canuc Resources Corporation reported that recent work at its San Javier project in Sonora has identified eight targets within four distinct mineralized zones, which now merit-follow-up work. At the Silver Zone, about additional 100 soils samples were collected to better define a strong Ag and Au anomaly. Now, the Ag soils anomaly is 750m in strike length with values up to 21 g/t Ag and 1.65 g/t Au, and remains open in both the southwest and northeast direction. Recent prospecting and rock sampling (10 samples) on the northeast end of this zone, approximately 400m of the soil survey has returned Ag values from 38 g/t Ag to 1,533 g/t Ag associated to magnetite veins which daylight near the margins of a magnetic high. Additionally, seven samples were collected near old artisanal workings and assayed from 27g/t Ag to 604 g/t Ag and from 0.1 g/t Au to 1.2 g/t Au. More sampling is planned throughout this area. At the Gold Zone South and Gold Zone Central, the company collected 1,829 channel samples from 11 bulldozed trenches. All the trenches contain elevated Au values ranging from 0.2 g/t Au to 40 g/t Au. At the South Gold Zone, two targets measuring 300m to 400m in diameter have been outlined. Sampling on one of those called La Cascada returned 0.16 g/t Au and 0.48% Cu over a width of 13m, while the other called Loma Pelona assayed 0.59 g/t Au and 0.47% Cu over a width of 10.5m. The Central Gold Zone contains 3 distinct targets measuring 300 to 400m in diameter. La Mesa target includes elevated Au values ranging from trace to 1.42 g/t Au. One section returned 0.28 g/t Au over 16m. At La Curva target the trenching sampling returned 0.45 g/t Au over 6m; 0.48 g/t Au over 4m; and 0.45 g/t Au over 4m. At La Quebrada target, trenching sampling returned 0.68 g/t Au over a width of 14m. Six channel samples collected over a an area of 100mlong by 50m wide, located approximately 80m southeast of the trench area, returned an average grade of 3.09 g/t Au, ranging from 0.018 g/t Au to 11.4 g/t Au. At the North Zone, a target called Chapoteados was prospected and sampled on an area of  600m long by 200m wide. Twenty two samples were taken and contained an average grade of 0.38% Cu, 0.3 g/t Au, and 4 g/t Ag. A second target called Arroyo Hondo, located 800m northeast of the Chapoteados target also was sampled. Twenty five samples collected on an area of 300m by 100m averaged 15 g/t Ag, (ranging from trace to 145 g/t Ag), 0.14 g/t Au, (ranging from  0.01 g/t Au to 1.19 g/t Au), and 220 ppm Cu, (ranging from 20 ppm to 0.38% Cu).
  • Orex Minerals Inc., announced the completion of the Phase-1 reconnaissance exploration drilling program on its Sandra project in northwest Durango. Sandra project is a JV agreement between Pan American Silver Corp., (60%) and Orex Minerals (40%). Phase-1 consisted of 2,665.30m in 8 diamond drill holes.  Four holes were drilled on targets in the Central Corridor aand four holes were drilled in the Eastern Corridor. Drilling highlights include hole SA-22-066 collared in the Central Corridor with 1.04 g/t Au over a true width (TW) of 1.53m; and hole SA-22-.073 collared in the Eastern Corridor with 39 g/t Ag, 0.1% Pb, and 0.2% Zn over a TW of 14.5m, including 51 g/t Ag, 0.2% Pb, and 0.,2% Zn  over a TW of 5.1m.
  • Vortex Metals Inc., provided an update of the exploration work completed to date at its Riqueza Marina Volcanogenic Massive Sulphide project in Oaxaca. The company completed a gravity and magnetic survey at the Rhyolite Dome target that produced extensive geophysical anomalies coincident with geochemical anomalies, including the West and East Gossan Areas.   Rock sampling  returned 12 samples with more than 1% Cu, up to 20.2% Cu and an additional 34 samples contain more than 1,000 ppm Cu. Vortex plans to drill this target once the drill permits are secured.

ON MINING

  • Bear Creek Mining Corporation, presented Q3, 2022 production results from its Mercedes mine in Sonora. The company mined 128,698 tonnes and processed 148,211 tonnes of 2.45 g/t Au with metallurgical recovery of 95.53% to produce 11,169 Oz Au. Bear Creek sold 12,310 Oz Au. It also reported a gold stream of 2,759 Oz Au.
  • Guanajuato Silver Company Ltd., provided an update highlighting the impact of additional production from the recently acquired Topia and San Ignacio mines in Durango and Guanajuato states respectively. Guanajuato Silver increased 85% its production from July to August 2022. The company reported that in August, 2022 it mined from the El Cubo & San Ignacio mines in Guanajuato, and Topia mine in Durango 41,372 tonnes and milled 36,948 tonnes to produce 128,780 Oz Ag, 1,091 Oz Au, 348,137 Lb Zn, and 266,881 Lb Pb (267,525 Oz AgEq) with metallurgical recoveries of 88.9%, 85.6%, 81.8%, and 89.5% respectively, at a cash cost of $15.09 per Oz AgEq.

ON FINANCING

  • Advance Lithium Corp., closed a previously announced private placement financing for gross proceeds of $75K. Proceeds will be used to advance the Lithium and Sarape projects, and for general corporate purposes (Sarape project, Sonora).
  • Capitan Mining Inc., announced a non-brokered private placement for gross proceeds of up to CAD $3M. It will consists of 15M of common shares at a price of CAD $0.20 per share. Net proceeds will be used to advance drilling and work program at the Cruz de Plata project in Durango, as well as for working capital and general corporate expenses.
  • Guanajuato Silver Company Ltd., has arranged to issue 2,468,750 common shares of the company at a deemed price of CAD $0.40 per share in settlement of outstanding accounts payable and accrued liabilities to various parties totaling approximately CAD $987K (Pinguico mine, Guanajuato). 
  • Barksdale Resources Corp., announced that Teck Resources Limited has elected to exercise its pro-rata equity participation rights for gross proceeds of $264K. Teck will hold approximately 9.9% of Barksdale’s equity on a partially diluted basis. Net proceeds from the financing will be used to advance the Company’s mineral projects and for general corporate and working capital purposes (San Javier project, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Azucar Minerals Ltd., completed second hole into the large porphyry lithocap target at its El Cobre project in Veracruz. “This hole passed trough typical clay dominant lithocap alteration into phyllic alteration. Large intervals of brecciated rock were intersected possibly reflecting a diatreme like body that may have disrupted any earlier porphyry alteration zonation in this area. Alteration data has been collected from the core using a Terraspec infrared spectrometer along with samples for assay and fluid inclusion analysis. Any future drilling in this area will be guided by the results and interpretation of these analyses from both holes”.
  • Gatos Silver Inc., provided updates on Mineral Resources, Mineral Reserves, and Life of Mine for its Cerro Los Gatos and Esther mines in Chihuahua. Figures are shown in the tables below:

Cerro Los Gatos – Mineral Reserves as at July 1, 2022.

Cerro Los Gatos – Mineral Resources as at July 1, 2022.

Esther – Mineral Resources as at July 1, 2022.

*Mineral Resources are exclusive of Mineral Reserves.

As for the Cerro Los Gatos Life of Mine plan using only the 2022 Mineral Reserves, the company reported that the current reserve mine life continues to 2028; the average annual production of 7.8M Oz Ag will generate an average annual cash flow of USD $79M (after tax) through 2028 at USD $22 per Oz Ag price; an all in sustaining cost (AISC) of  USD $7.06 per Oz of payable Ag, net of by-product credits; an average cost of USD $89.76 per tonne milled ; and a net present value (NVP) at a discount rate of USD $491M(USD $337M after tax).

  • Minera Alamos Inc., announced positive results of an independent Preliminary Economic Assessment (PEA) for its Cerro de Oro project in Zacatecas. Highlights of the PEA include an average annual gold production approaching 60K Oz (approx. 60K-to 70K Oz in years 1 through 4); a 8.2 mine life based on initial mineable total of 59M tonnes of 0.37 g/t Au, heap leached at an average rate of  approximately 20K tonnes per day of over 0.4 g/t Au in years 1 through 4; 477K Oz Au produced in loaded carbon/doré; a  life of mine (LOM) strip ratio of 0.3:1(waste: mineralization); a LOM all included sustaining cost (AISC) of USD $873 per Oz Au , averaging USD $763 per Oz Au in years 1 through 4; an after tax NPV at 5% discount rate of USD $150.5M and an internal rate return (IRR) of USD $111%; a pre-production capital cost of USD $28.1M (includes 30% contingency); a payback period of 11 months; and used crushing plant already purchased to reduce up-front capital requirements. The company also reported an updated mineral resource estimate containing 67M tonnes of 0.37 g/t Au(790K Oz Au contained) based on an upward revision of the base case resource metal price to USD $1,700 per Oz.
  • Oroco Resource Corp., announced that, based on drill results, expanded the North Zone mineralization, and confirmed higher grade at its Santo Tomas project in Sinaloa. Extension drilling highlights include hole NO19 with 0.26% and 0.006% Mo over 127.8M, plus 0.21% Cu and 0.008% Mo over 126m; hole   NO21 with 0.34% Cu and 0.008% Mo over 81.4m, plus 0.41% Cu and 0.018% Mo over 32.9M, and hole NO24 with 0.30% Cu and 0.016% Mo over 86.6m, plus 0.22% Cu and 0.007% Mo over 90.1m. High grade drilling highlights include hole NO22 with 0.37% Cu and 0.009% Mo over 152.1m, plus 0.21% Cu and 0.005% Mo over 102m; hole NO23 with 0.31% Cu and 0.005% Mo over 139m, including 0.55% Cu and 0.006% Mo over 56.7m; hole NO25 with 0.40% Cu and 0.004% Mo over 286m; and hole NO26 with 0.6% Cu and 0.01% Mo over 92.2m, plus 0.25% Cu and 0.009% Mo over 69.8m. A total of 35 holes (22,769m of drilling) have now been completed in the North Zone, spanning approximately 1,300m of strike length, with intersections of good grade mineralization returned in all holes for which the company has received assays.
  • Tarachi Gold Corp., received final metallurgy results for its Magistral Mill and Tailings project in Durango. Highlights include up to 99% of Cu in solution precipitated into high-grade in sulphidation, acidification, recycling and thickening (SART) concentrate; more gold expected to report to Merrill-Crowe circuit for greater metal value payability compared to assumptions used in Preliminary Economic Assessment; and lower mercury CN-solubility than previously assumed and potential for 2-stage SART process to remove mercury from concentrate.
  • Torex Gold Resources Inc., received approval from Mexico’s Secretariat of Environmental and Natural Resources (SEMARNAT) on the key, culminating environmental permit for its Media Luna project in Guerrero. The approval (MIA Integral) allows for operations to begin at Media Luna and builds on the receipt of the MIA Modification received last year, which allowed for the execution of development activities on the south side of the Balsas River. The Company has also received approval to increase the power draw at site to 45 megawatts.
  • Prime Meridian Resources Corporation provided an update on its La Verde project in Michoacan. The company and the vendor have elected to modify the La Verde project purchase agreement by changing the requirement for two USD $200K option payments due under the current agreement to USD $20K minimum monthly payments. With this modification, the work program expenditures for the next six months are projected as follow: USD $165,600 for monthly options payment; USD $22,434 for La Verde project-mining duties; and USD $262,200 for La Verde project-Phase 1 work program. The Phase 1   program will consist of Structural Mapping / Magnetometer Study; Prospecting / Geochemical Sampling; and 1,200m of Definition Drilling.

ON DEALS AND CORPORATE ISSUES

  • Starcore International Mines Ltd., announced results of its annual general meeting of shareholders (San Martin mine, Queretaro).
  • Riverside Resources Inc., regained 100% control of the La Union project in Sonora after Hochschild Mining Corporation announced its decision to not to proceed with the option. Riverside was reimbursed for past taxes and fees with more than USD $500K of new mineral exploration and consolidation work completed to-date as per the option agreement with Hochschild. “Exploration work completed to-date includes extensive field mapping, sampling, and geochemistry. The newly mapped and sampled areas show alteration features typical of CRD targets and particularly the gossan oxidation of potential sulfide bodies at shallow depths (<100m) that remain wide open for relatively low-risk, high-potential exploration”. Riverside will integrate all of the data and evaluate new partnership opportunities in the near future.

ON SOCIAL RESPONSIBILITY

  • Industrias Peñoles S.A.B. de and Fresnillo plc., work together for an appropriate and healthy habitat. Both companies have the purpose of contributing to the well-being of the population through sustainable mining practices. Therefore, they recognize the shared responsibility to create, maintain and develop an appropriate habitat for the life of all species, including people. Octavio Alvídrez, CEO of Fresnillo plc., stated that “promoting the urban development of the communities in which we operate, as well as preserving and restoring the biodiversity of the areas surrounding our facilities, is a priority in our management and a constant throughout the life cycle of each of our mining units”.
  • Industrias Peñoles S.A.B. de and Fresnillo plc., were awarded with a distinction in Ethics and Values ​​of the Industry 2022 in recognition of their corporate responsibility practices. Both Peñoles and Fresnillo plc have a social impact strategy through various outreach programs and thereby contribute to the well-being of families in the communities where they operate, in addition to promoting values ​​and self-development among their neighbors.
  • GoGold Resources Inc., presented its second annual sustainability report that sets out the company´s performance and achievements with respect to its environmental, social, and governance practices (ESG). Highlights of this report include 0.006 tCO2 per Oz AgEq produced; 0.004 tCO2e per tonne of ore processed; 9,500 hours of safety and professional development training; awarded the ESR distinction (Empresa Socialmente Responsables – Corporate Social Responsibility); USD $17.1M spent in local purchases, including USD $422K in community investment; and adoption of new policies related to Environment, Human Rights, Diversity Equity and Inclusion, Climate Change, and Water Resources.
  • MAG Silver Corp., announced the publication of its inaugural 2021 Sustainability Report. Highlights of this report include zero fatalities at the Juanicipio project and MAG Silver´s exploration projects; a Juanicipio project(one million hours) lost time injury frequency rate  of 10.8 (employees and mine contractors; excluding construction contractors; over 51,000 hours dedicated to safety training in 2021 at the Juanicipio project; risk management system reviewed and updated in 2021 and 2022; a freshwater use ratio of 4% and a renewable power ratio of 84% at the Juanicipio Project while in the construction phase; in 2021, MAG Silver benchmarked current Climate-related risk and opportunities performance with the recommendations of the Task Force on Climate-related Financial Disclosures; MAG’s 2021 commitment to increase Board and senior management diversity means that currently 38% of MAG’s Board and 40% of MAG’s employees are female; and MAG’s Human Rights Policy and Diversity, Equity and Inclusion Policy were updated and approved, complementing and enhancing pre-existing commitments.

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

On the picture above, banded quartz from an intermediate sulphidation vein system in a project in Zacatecas, Mexico.  Photo by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the Fifth Week of September 2022

By Jorge Cirett

During the 39th week of the year (September 26th to October 2nd, 2022), only 10 companies working in Mexico released news on their properties, almost equating the lowest number published since this weekly review commenced seven years ago. Two companies posted exploration advances on their properties, there were no relevant news in mining and financing, three companies released drilling results, updated about exploration on their advanced properties. Two companies informed on the acquisition of properties.  ON MEXICO ISSUES, an accident in the Clarines Navidad mine in Durango resulted in the death of a worker and injury of a second one. ON EXPLORATION, in Sonora, Silver Spruce released drilling results from Diamante; Infinitum Copper informed on drilling results from La Adelita. ON MINING, no relevant news. ON FINANCING, no relevant news.  ON RESOURCES AND DEVELOPMENT, Endeavour Silver reported drilling results from the Santa Cruz vein – El Curso, at Guanaceví, in Durango. Silver Tiger released drilling results from El Tigre Au zone, the Seitz Kelly vein and El Tigre vein, at El Tigre, in Sonora. Discovery Silver announced the results of the final holes of the phase 2 drill program at Cordero, in Chihuahua, and informed on the property wide exploration. ON DEALS AND CORPORATE ISSUES, Canuc Resources acquired three mining concessions adjacent to its land package at its San Javier project in Sonora. Regency Silver entered into an option agreement to acquire the Oso Blanco claims, adjacent to its Dios Padre property in Sonora. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • The Coordinación Nacional de Protección Civil informed on the death of one worker at the Clarines Navidad mine in Indé, Durango. The incident involved a rock fall while underground drilling was being performed, with one other worker resulting with injuries.

ON EXPLORATION

  • Silver Spruce Resources Inc. along with partner Colibri Resources Corp. released drilling results from its Diamante project in Sonora. The reverse circulation (RC) drilling tested La Prieta target, with highlighted hole length intersections of 9.0 m @ 2.48 gpt Au, 57 gpt Ag, 0.7% Pb, 0.3% Zn; 13.5 m @ 0.56 gpt Au, 38 gpt Ag, 0.8% Pb, 1.8% Zn; 10.5 m @ 0.63 gpt Au, 39 gpt Ag, 0.6% Pb, 1.6% Zn; 9.0 m @ 0.55 got Au, 15 gpt Ag, 0.2% Pb, 0.4% Zn; 3.0 m @ 1.36 gpt Au, 87 gpt Ag, 0.9% Pb, 1.7% Zn; 6.0 m @ 0.64 gpt Au, 11 gpt Ag, 0.2% Pb, 0.3% Zn. “Geological features of epithermal Au, low to intermediate sulphidation Ag-Au (Pb-Zn), high sulphidation Au-Cu, and potential porphyry style Au-Cu occur as disseminated, stockwork and vein styles. Most drill targets are polymetallic vein style with precious metal-dominant targets also identified at Calton, El Chon and Aguaje.”
  • Infinitum Copper Corp. reported diamond drilling results from La Adelita, in Sonora. The highlighted true width (TW) results from the two holes comprise 32.25 m @ 1.01% Cu, 0.52 gpt Au, 40 gpt Ag (including 17.05 m @ 1.68% Cu, 0.83 gpt Au, 59 gpt Ag); 19.30 m @ 0.54% Cu, 0.31 gpt Au, 23 gpt Ag. “The skarn alteration is dominated by grossularite-andradite garnet with 5% to 20% associated magnetite. Copper mineralization associated with the skarn consists of chalcocite, chalcopyrite and bornite disseminated in the matrix between crystalline garnet and in later quartz-calcite veinlets”.

ON MINING

  • No Relevant News.

ON FINANCING

  • No Relevant News.

ON RESOURCES AND DEVELOPMENT

  • Endeavour Silver Corp. reported drilling results from its Guanaceví property in Durango. The program focused on the El Curso area of the Santa Cruz vein. Highlighted true width (TW) intervals comprise 1.16 m @ 3.50 gpt Au, 1,150 gpt Ag; 7.28 m @ 3.54 gpt Au, 1,129 gpt Ag (including 0.43 m @ 25.4 gpt Au, 7,80 gpt Ag) on the El Curso area of the Santa Cruz vein and 2.43 m @ 1.43 gpt Au, 967 gpt Ag; 1.17 m @ 1.60 gpt Au, 1,460 gpt Ag from Porvenir Dos. “The 2022 drill program has continued to focus on the El Curso property, establishing lateral and vertical extents of the mineralized zone between the Porvenir Cuatro and Milache mines”.
  • Silver Tiger Metals Inc. released drill results from El Tigre, in Sonora. The targets drilled include El Tigre Au zone, the Seitz Kelly vein and El Tigre vein. Highlighted core length results comprise 0.7 m @ 0.23 gpt Au, 1,204 gpt Ag, 0.55% Cu, 3.2% Pb, 1.1% Zn; 0.5 m @ 2.30 gpt Au, 835 gpt Ag; 19.3 m @ 0.46 gpt Au, 11 gpt Ag; 8.0 m @ 0.40 gpt Au, 25 gpt Ag; 37.1 m @ 0.20 gpt Au, 7 gpt Ag; 14.4 m @ 0.25 gpt Au, 1 gpt Ag; 27.9 m @ 0.50 gpt Au, 26 gpt Ag (including 3.60 m @ 1.45 gpt Au, 144 gpt Ag); 1.5 m @ 0.12 gpt Au, 498 gpt Ag, 0.27% Cu, 1.5% Pb, 0.5% Zn; 19.5 m @ 0.74 gpt Au, 48 gpt Ag; 35.5 m @ 0.24 gpt Au, 110 gpt Ag (including 8.1 m @ 0.45 gpt Au, 392 gpt Ag, 0.3% Pb); 11.7 m @ 0.69 gpt Au; 10.9 m @ 0.58 gpt Au, 6 gpt Ag; 5.9 m @ 0.37 gpt Au, 86 gpt Ag (including 0.5 m @ 2.82 gpt Au, 36 gpt Ag.
  • Discovery Silver Corp. announced the results of the final 26 holes from the phase 2 drill program at Cordero, Chihuahua. Several of the holes are below the previously modeled resource pit, demonstrating the expansion potential at the project. Highlighted core length intervals comprise 50.0 m @ 58 gpt Ag, 0.21 gpt Au, 0.7% Pb, 0.4% Zn; 58.3 m @ 99 gpt Ag, 0.33 gpt Au, 1.6% Pb, 1.0% Zn; 48.3 m @ 100 gpt Ag, 0.63 gpt Au, 1.8% Pb, 0.8% Zn; 42.2 m @ 76 gpt Ag, 0.06 gpt Au, 1.0% Pb, 2.4% Zn; 40.2 m @ 75 gpt Ag, 0.14 gpt Au, 1.2% Pb, 1.1% Zn; 124.7 m @ 37 gpt Ag, 0.04 gpt Au, 0.4% Pb, 1.6% Zn on the PEA pit upgrade and expansion drilling, and 58.2 m @ 21 gpt Ag, 0.05 gpt Au, 0.2% Pb, 1.0% Zn; 17.3 m @ 25 gpt Ag, 0.12 gpt Au, 0.3% Pb, 3.1% Zn; 40.6 m @ 35 gpt Ag, 0.07 gpt Au, 1.5% Zn; 42.2 m @ 76 gpt Ag, 0.06 gpt Au, 1.0% Pb, 2.4% Zn; 86.4 m @ 32 gpt Ag, 0.02 gpt Au, 0.1% Pb, 2.2% Zn on the resource expansion drilling. The property wide exploration program includes geological mapping 2,190 rock samples, 3,639 soil samples, geophysics and diamond drilling. The main areas of surface exploration are Sanson, Pórfido Norte, Dos Mil Diez, Molino de Viento and La Perla. With the phase 2 program, 293,000 m of drilling have been completed in 735 holes in the project.

ON DEALS AND CORPORATE ISSUES

  • Canuc Resources Corp. signed agreements to acquire three additional claims at its San Javier project in Sonora. With an area of 104.5 hectares, the newly acquired claims take the total land position of Canuc to 956.4 hectares. No details were given on the deals.
  • Regency Silver Corp. entered into an option agreement to acquire the Oso Blanco claims in Sonora. The 5,650 hectares are in contiguous to the company’s Dios Padre project. Regency has to pay $500 K over five years, pay back taxes estimated at US$500 K and issue a total of 1 M common shares over 36 months. A US$1 M bonus will be paid upon the publication of a NI 43-101 resource of more than 70 M Oz AgEq or more than 1 M Oz AuEq in the measured or indicated categories.

ON SOCIAL RESPONSIBILITY

  • No Relevant News.

On the image below: Rock fragment within a breccia displaying a quartz veinlet in the Sonoran Desert. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the Third Week of September 2022

By Jorge Cirett
During the 37th week of the year (September 12th to September 18th, 2022), at least 27 companies working in Mexico released news on their properties. Four companies posted exploration advances on their properties, one on the resumption of activities after an illegal blockade, one updated on its work plan for the rest of 2022 and one more updated on the commissioning of its new mine. One company begun trading on the OTCQB Venture Market, one more is to pay services with shares, one cancelled its public offering due to market conditions and one more closed its private placement raising $264 K. Eleven companies released drilling results, informed on exploration, updated resource estimates, provided metallurgical test results, released historic drill results and about commissioning on their advanced properties. One company sold a mine in care and maintenance, one is awaiting permits for the operation of a processing plant, one is to switch a mining property to exploration and pursue acquisition opportunities, and two more announced the formation of a JV to mine a deposit.  ON MEXICO ISSUES, Grupo Mexico’s VP alerted on the risk of insufficient supply of minerals for the energy transition. ON EXPLORATION, in Sonora, Infinitum Copper released drilling results from La Adelita; Tocvan Ventures defined a solid target at El Picacho. In Chihuahua, Golden Minerals released drilling results from Yoquivo; Reyna Silver provided results from surface and underground sampling at Batopilas. ON MINING, Equinox Gold informed on the termination of an illegal blockade at Los Filos. Golden Minerals updated on plans for Velardeña, and Rodeo. SilverCrest Metals updated on the commissioning of Las Chispas mine. ON FINANCING, Regency Silver begun trading at the OTCQB Venture Market. Bear Creek Mining had the payment in shares to a service provider approved. Ranchero Gold withdrew the announced public offering due to market conditions. Silver Spruce closed its financing round having raised $264 K.  ON RESOURCES AND DEVELOPMENT, GR Silver Mining released drilling results from its Plomosas project in Sinaloa. Vizsla Silver reported drilling results from the Panuco project in Sinaloa, including one of the highest silver intercepts here recorded. Orla Mining updated on exploration results at the Camino Rojo Sulfides project and exploration on regional targets in Zacatecas. Americas Gold and Silver updated on resources and exploration at its Cosalá property in Sinaloa. Chesapeake Gold informed on metallurgical test results from Metates, in Durango. Guanajuato Silver Company released historic drill hole results from the Valenciana complex in Guanajuato. Mag Silver updated on the commissioning of Juanicipio in Zacatecas Silver Tiger released results from drilling at El Tigre, in Sonora, and on rehabilitation of underground workings. Torex Gold released drilling results from ELG Underground in Guerrero. Pan American Silver provided an updated resource estimate on the La Colorada Skarn deposit in Zacatecas. GoGold Resources released drilling results on Los Ricos North, in Jalisco. ON DEALS AND CORPORATE ISSUES, Endeavour Silver entered into an agreement to sell El Compas property in Zacatecas to a Mexican company. Xali Gold informed Sun River Gold is about to receive the permit for the processing of tailing at El Oro, in Estado de Mexico. Excellon Resources is evaluating the creation of a spin-out company to pursue acquisitions and looking for partners to explore the Platosa property in Durango. Teck Resources and Agnico Eagle Mines reached an agreement to form a JV to mine the San Nicolás VMS deposit in Zacatecas. ON SOCIAL RESPONSIBILITY, no relevant news.
ON MEXICO ISSUES
·        Xavier García de Quevedo, V.P. of Grupo Mexico, alerted about the risks on the energy transition if the mining industry does not rise its production of minerals. The race to zero emissions is augmenting the demand for lithium, nickel, cobalt, manganese, and graphite for the elaboration of batteries, as well of copper, aluminum, zinc, silicon and rare earths for electricity transmission and renewable energy generation. He pointed out that the time frame to obtain environmental permits, land acquisition, water usage permitting, resolution of social conflicts, community development and human capital are founding stones for the future development of mining.
ON EXPLORATION
·        Golden Minerals Co. reported assay results from 15 holes on the third drill program at Yoquivo, in Chihuahua. “Drilling was designed to follow up on high-grade intercepts reported in earlier drill campaigns and to explore the Pertenencia vein system with sufficient drill density to enable a maiden resource estimate in Q1 2023”. Highlighted true width (tw) intervals comprise 4.4 m @ 1.58 gpt Au, 205 gpt Ag; 5.6 m @ 0.83 gpt Au, 110 gpt Ag; 3.7 m @ 2.53 gpt Au, 379 gpt Ag; 24.8 m @ 0.30 gpt Au, 66 gpt Ag; 2.1 m @ 6.70 gpt Au, 339 gpt Ag. Highlighted core length intervals comprise 3.7 m @ 4.49 gpt Au, 767 gpt Ag; 9.3 m @ 0.28 gpt Au, 209 gpt Ag; 1.7 m @ 2.72 gpt Au, 646 gpt Ag; 4.6 m @ 11.42 gpt Au, 155 gpt Ag.
·        Infinitum Copper Corp. released results from two drill holes at La Adelita, in Sonora. Highlighted core length intervals comprise 20.60 m @ 1.91% Cu, 2.00 gpt Au, 41 gpt Ag; 9.15 m @ 0.14% Cu in the Cerro Grande zone. “The mineralization consists of chalcopyrite, bornite and covellite …….. The magnetite content is estimated to vary from 15% to 75% over the 20.60 m length and iron values average 24%”.
·        Tocvan Ventures Corp. completed the compilation and surface evaluation of the San Ramon prospect within El Picacho project in Sonora. “The target area currently consists of a 500-meter by 500-meter area focused around historic workings trending south along the contact of a regional fault”. Historic sampling at one old working returned an average of 3.6 gpt Au in nine samples and an average of 5.0 gpt Au in 23 samples on a second old working. Three historic reconnaissance holes returned 59.3 m @ 0.2 gpt Au: 39.0 m @ 0.2 gpt Au; 15.0 m @ 0.1 gpt Au.
·        Reyna Silver Corp. provided results from surface and underground sampling from Batopilas in Chihuahua. The 2021 and 2022 work has outlined two gold zones, the East Belt and the Teodoro Gold zone, and better defined the high-grade Silver Zone (that made the district famous with its hypogene native silver) with 300 to 1,500 m extensions to the veins. Six percent of 1,458 samples returned 199 to 14,170 gpt Ag and more than 10% between 1.1 to 32.6 gpt Au. Two geochemical distinct gold events have been recognized to be superimposed on earlier silver. Highlighted results comprise 0.6 gpt Au, 14,170 gpt Ag; 0.1 gpt Au, 3,120 gpt Ag; 32.6 gpt Au, 16 gpt Ag; 30.6 gpt Au, 16 gpt Ag; 22.9 gpt Au, 22 gpt Ag; 16.4 gpt Au, 67 gpt Ag; 8.8 gpt Au, 91 gpt Ag; 19 gpt Au, 2,090 gpt Ag. “a new district-scale magneto-telluric (MT) geophysical survey and a detailed structural reanalysis….. will be combined to define targets for the next round of drilling”.   
ON MINING
·        Equinox Gold Corp. reported that after a meeting with Mezcala community leaders, the illegal blockade at the Los Filos mine in Guerrero was removed and operations were resumed.
·        Golden Minerals Co. announced that “Further review of the results from the Company’s test-mining activities at Velardeña (Durango) over the summer and a review of the mine plans have led Golden to the decision to undertake a development and exploration drill program at Velardeña prior to proposing the restart of mining”. At Rodeo, in Durango, Golden maintains its production guidance for 2022 of 12 to 14 K Oz Au and 42 to 47 K Oz Ag.
·        SilverCrest Metals Inc. provided an update on the commissioning of Las Chispas mine in Sonora. Daily throughput and metallurgical recoveries are trending ahead of projections with actual average recoveries of 96.2% Au, 85.6% Ag and 784 tonnes per day (tpd) processing. The project is fully energized by grid power still to achieve complete reliability. Underground mining is ramping up to 600 to 700 tpd (750 tpd design) with continued focus in dilution and recovery. “In 2022, an additional 5.1 km of underground development has been completed at the Mine, bringing the total to 22.6 km. In-vein drifting represents 5.5 km of this total. A total of 109,000 tonnes of ore have been mined from development and stoping activities in 2022 up to the end of August 2022, approximately 9% below the Feasibility Study target”.
ON FINANCING
·        Regency Silver Corp. announced that its common shares have begun trading on the OTCQB Venture Market, a US platform that is operated by the OTC Markets Group in New York (Dios Padre, Sonora).
·        Bear Creek Mining Corp. has received approval for its shares for services with Unison Mining Consulting Pte. Ltd. Bear Creek issued Unison 555 K common shares (Mercedes, Sonora).
·        Ranchero Gold Corp. terminated its marketed public offering due to market conditions. The company is in discussion with investors to fund the continued exploration work that is currently underway at its Santa Daniela gold project and will provide a financing update shortly (Santa Daniela, Sonora).
·        Silver Spruce Resources Inc. announced a second and final closing of its private placement for gross proceeds of $147 K to reach a total of $264 K on the private placement (El Mezquite and Diamante in Sonora).
ON RESOURCES AND DEVELOPMENT
·        GR Silver Mining Ltd. released drilling results that are part of the ongoing resource update program at Plomosas, in Sinaloa. Highlighted core length intervals comprise 5.7 m @ 514 gpt Ag, 0.1 gpt Au, 0.4% Pb, 0.5% Zn (including 1.0 m @ 1,634 gpt Ag, 0.28 gpt Au, 1.2% Pb, 1.0% Zn. 7.3 m @ 55 gpt Ag, 8.66 gpt Au, 2.7% Pb, 6.6% Zn, 0.5% Cu; 5.0 m @ 88 gpt Ag, 0.33 gpt Au, 5.1% Pb, 2.8% Zn, 0.2% Cu; 21.2 m @ 2.1% Pb, 1.3% Zn. “The Company’s underground drilling and mapping program, currently in progress in the Plomosas Mine Area, has identified un-mined zones that will be incorporated into the upcoming resource estimate.
·        Vizsla Silver Corp. reported results from nine holes from the Copala structure at its Panuco project in Sinaloa. Highlighted true width (TW) intervals comprise 10.20 m @ 1,404 gpt Ag, 10.94 gpt Au (including 0.38 m @ 23,058 gpt Ag, 205.0 gpt Au); 7.31 m @ 743 gpt Ag, 2.59 gpt Au (including 1.01 m @ 3,560 gpt Ag, 8.60 gpt Au); 14.24 m @ 632 gpt Ag, 4.30 gpt Au (including 0.71 m @ 1,575 gpt Ag, 11.00 gpt Au and 1.07 m @ 3,510 gpt Ag, 22.80 gpt Au). “The drilling in the northwestern portion of Copala has traced mineralization along approximately 1,000 metres of strike length and approximately 400 metres down dip”.
·        Orla Mining Corp. provided an update on the 2022 exploration program. Phase 2 drilling continues at Camino Rojo Sulfides, with highlighted core length intercepts of 41.5 m @ 2.56 gpt Au; 52.5 m @ 3.08 gpt Au; 61.2 m @ 1.95 gpt Au; 36.60 m @ 3.20 gpt Au; 27.0 m @ 2.13 gpt Au. Orla expects the new drilling to support a new underground development scenario. Reverse circulation drilling on regional exploration targets is to continue through the second half of 2022. The 2022 exploration budget for Mexico was $10 M.
·        Americas Gold and Silver Corp. informed the measured and indicated resources are almost unchanged year-over-year at Cosalá, in Sinaloa. “The Company recently reinterpreted historic geophysical information and, after incorporating new data from an IP survey completed this summer, has identified seven major IP/Mag anomaly trends on property near San Rafael and EC120.  A 17‐hole drill program is planned to test this area”.
·        Chesapeake Gold Corp. provided a metallurgical update for its Metates project in Durango. Samples of ½” material stored for several years were subject to oxidation and then leached with a standard lime cyanide solution for 90 days with recoveries of almost 60% Au and just over 50% Ag. Further tests of new material with no pre-oxidation returned 35% Au, 20% Ag, but when subjected to oxidation, the oxidation rate was slower than at the first test. A second round of testing is underway, including “crushing finer to ¼”, using High Pressure Grinding Rolls (HPGR) to crush finer, different reagent strengths, different pH’s, on/off irrigation, and varying air addition rates”.
·        Guanajuato Silver Company Ltd. provided an exploration update emphasizing historical drill hole data from the Valenciana mines complex in Guanajuato, which “encompasses approximately 4.2 km of strike length along the Veta Madre regional fault structure”. Highlighted true width intervals comprise 1.54 m @ 4.94 gpt Au, 658 gpt Ag; 6.16 m @ 0.97 gpt Au, 140 gpt Ag; 3.07 m @ 2.86 gpt Au, 367 gpt Ag; 12.49 m @ 1.6 gpt Au, 213 gpt Ag; 8.42 m @ 2.84 gpt Au, 389 gpt Ag; 0.62 m @ 14.38 gpt Au, 1,565 gpt Ag; 2.01 m @ 5.0 gpt Au, 866 gpt Ag; 5.25 m @ 0.95 gpt Au, 145 gpt Ag; 1.24 m @ 2.97 gpt Au, 101 gpt Ag.

·        Mag Silver Corp. informed it has been notified by Fresnillo PLC, operator of the Juanicipio project JV in Zacatecas, that the connection of the processing plant installations to the national grid is being tested under caution to protect the grid from undue fluctuations. “The Fresnillo project team indicates that power for final commissioning and start of operations should be available by the end of October, and that production ramp up will commence in Q4 of this year”.

·        Silver Tiger Metals Inc. released drilling results from El Tigre project in Sonora. Highlighted core length results comprise 8.1 m @ 554 gpt Ag, 0.17 gpt Au, 0.92% Cu, 2.5% Pb, 3.6% Zn (including 2.0 m @ 1,270 gpt Ag, 0.2 gpt Au, 1.66% Cu, 2.8% Pb, 4.3% Zn);  0.5 m @ 2,010 gpt Ag, 0.27 gpt Au, 2.51% Cu, 1.5% Pb, 5.0% Zn; 1.1 m @ 3,096 gpt Ag, 1.79 gpt Au, 0.68% Cu, 1.2% Pb, 0.2% Zn; 0.6 m @ 3,097 gpt Ag, 2.47 gpt Au, 0.32% Cu, 1.0% Pb, 0.8% Zn. Silver Tiger “contracted Cominvi, a Mexican underground contract mining and development company to rehabilitate the Historic El Tigre Mine. Cominvi are progressing well in the underground rehabilitation of the Historic El Tigre Mine and have already completed over 400 meters of rehabilitation in Level 7, which was the main portal to the mine”.

·        Torex Gold Inc. reported assay results from the drill program at El Limón Guajes (ELG) underground mine in Guerrero, including the Sub-Sill and El Limón Deep zones. Highlighted core length intervals comprise 17.5 m @ 16.96 gpt Au; 9.7 m @ 16.87 gpt Au, 0.22% Cu; 11.7 m @ 10.39 gpt Au; 5.5 m @ 13.49 gpt Au, 8 gpt Ag, 0.22% Cu; 8.2 m @ 8.52 gpt Au, 23 gpt Ag, 1.69% Cu; 5.0 m @ 10.37 gpt Au, 10 gpt Ag, 0.51% Cu; 12.5 m @ 5.48 gpt Au, 0.15% Cu; 21.3 m @ 7.18 gpt Au, 26 gpt Ag, 0.77% Cu; 9.7 m @ 10.01 gpt Au, 11 gpt Ag, 0.30% Cu; 8.9 m @ 7.66 gpt Au, 0.12% Cu; 12.1 m @ 7.65 gpt Au, 0.40% Cu; 5.1 m @ 9.72 gpt Au, 0.15% Cu. The drilling budget for ELG Underground is $6 M for 27,000 meters. For Media Luna, a total of $19 M is budgeted for 64,000 m of infill, step-out and initial infill drill program at the adjacent EPO deposit. An additional $9 M is budgeted for 28,500 m of drilling across the broader land package and further $5 M for ore control and definition drilling in the ELG open pit and underground. “The ELG mining complex…. is hosted 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…. The style of mineralization at Sub-Sill South is like Sub-Sill and ELD, and is characterized by gold, which is strongly associated with bismuth and variable amounts of silver and copper. Gold occurs in variably sulfidized, pyrrhotite-rich skarn, while silver and copper mineralization is controlled primarily by the degree of sulfidation of the host skarn. Mineralization is associated with retrograde alteration characterized by the occurrence of phlogopite, amphibole, chlorite, calcite and lesser amounts of quartz and epidote, and local magnetite”.

·        Pan American Silver Corp. released an updated mineral resource estimate for its La Colorada Skarn deposit in Zacatecas. The estimated indicated mineral resource totals 95.9 M tonnes containing 94.4 M Oz Ag, 2.7 M tonnes Zn, 1.2 M tonnes Pb, with the estimated inferred mineral resource totaling 147.8 M tonnes containing 132.9 M Oz Ag, 3.4 M tonnes Zn, 1.5 M tonnes Pb. A total of 234,000 m of drilling have been completed to date on the deposit. “The polymetallic skarn mineralisation is concentrated in three zones, which cover an area of 1,500 metres by 1,100 metres laterally, and a depth of between 600 metres and 1,900 metres below surface…. The deposit is oriented in a north-northwest to south-southeast direction and is below the currently active Candelaria mine workings.

·        GoGold Resources Inc. released results from 21 holes at El Nayar and Gran Cabrera areas within Los Ricos North property in Jalisco. Highlighted core length intervals comprise 10.5 m @ 0.18 gpt Au, 61 gpt Ag; 5.3 m @ 0.38 gpt Au, 66 gpt Ag; 0.9 m @ 6.66 gpt Au; 9.3 m @ 0.15 gpt Au, 89 gpt Ag; 18.2 m @ 1.54 gpt Au, 125 gpt Ag at El Nayar, and 60.10 m @ 45 gpt Ag; 18.0 m @ 0.13 gpt Au, 105 gpt Ag; 18.0 m @ 0.21 gpt Au, 62 gpt Ag; 9.6 m @ 0.17 gpt Au, 74 gpt Ag; 6.8 m @ 0.31 gpt Au, 78 gpt Ag; 8.7 m @ 0.23 gpt Au, 128 gpt Ag; 4.1 m @ 0.26 gpt Au, 200 gpt Ag; 30.7 m @ 64 gpt Ag; 17.3 m @ 0.19 gpt Au, 118 gpt Ag (including 1.6 m @ 1.28 gpt Au, 809 gpt Ag). “The Gran Cabrera mega-system contains stockworks, breccia hosted ore bodies, and large vein feeder sub-systems…”. Dozens of historical underground workings are present along an E-W trending structure over 1,700 m along strike with widths extending more than 20 m. El Nayar consists of multiple subvertical veins and stockwork mineralization and limited historical workings.
ON DEALS AND CORPORATE ISSUES
·        Endeavour Silver Corp. entered into an agreement with Grupo ROSOGO S.A. de C.V. to sell a 100% interest on the El Compas property and the lease on the La Plata processing plant in Zacatecas. ROSOGO is to pay Endeavour $5 M cash over five years, with an initial payment of $250 K. Installment payments of $500 K will be made every six months other than the third payment, which will be $750 K.
·        Xali Gold Corp. informed Sun River Gold expects to receive the permit for tailings removal at El Oro, in Estado de Mexico, within a month. Sun River is also working on a permit to install and operate a reprocessing plant outside of El Oro town. “Xali Gold is to receive a 5% Net Profits Interest as well as the first US$1.5M due to the Municipality of El Oro from SRG’s El Oro tailings operations”. In Nayarit Xali is in negotiations to partner with a local Mexican mining group to operate the San Dieguito de Arriba plant and explore nearby mining properties. At El Dorado in Nayarit the company is in the process to obtain the drilling permit. The Cocula property in Jalisco exploration agreement has been terminated.
·        Excellon Resources Inc. provided a corporate update stating the evaluation of a spin-out exploration company, the pursue of acquisitions opportunities with emphasis in Mexico and exploring partnership opportunities to take Platosa in Durango from production to an interesting exploration prospect.
·        Teck Resources Ltd. and Agnico Eagle Mines Ltd. announced an agreement under which Agnico Eagle is to gain 50% interest in the San Nicolás project in Zacatecas. “Teck and Agnico Eagle will become 50/50 joint venture partners at San Nicolás”. Agnico Eagle is to buy US$580 M in shares of a Teck subsidiary. These proceeds will be used for study and development costs, and the contributions made as the costs are incurred, with no up-front payment by Agnico and funding for the first two years estimated at US$50 M. “post-closing costs with subsequent funding to be contributed according to each partner’s ownership percentage”.  San Nicolás is the largest undeveloped volcanic hosted massive sulfide deposit in Mexico, estimated to contain 105.2 M tonnes of proven and probable mineral reserves averaging 1.12% Cu, 1.48% Zn, 0.4 gpt Au, 22 gpt Ag. The development capital costs are estimated to be in the range of US$1,000 M to US$1,100 M, for an open pit operation with a 15 year mine life.    
ON SOCIAL RESPONSIBILITY
·        No Relevant News.
On the image below: Bladed calcite casts in an epithermal quartz vein in the Sonoran Desert. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the Second Week of September, 2022.

Porphyry copper mineralization

By Miguel A Heredia

During the 36th week of the year (September 05th to September 11th, 2022), at least 23 press releases were announced by companies working in Mexico, and 4 news published by the media with seven informing on exploration results, seven communicating production and financial results, five reporting resources and developments of their properties, five commenting on Mexican issues, two announcing financing issues, and one discussing social issues. ON MEXICO ISSUES, Equinox informed that mining activities at its Los Filos mine in Guerrero have been temporarily suspended due to an illegal blockade. Rocío Nahle, Secretary of Energy announced that Lithium for Mexico (LitioMx) will hold the first meeting of its Board of Directors on September 20, 2002. The Attorney General’s Office (FGR) reported that three arrest warrants have been issued against the same number of people, for the events that occurred in the Coahuila mine ‘El Pinabete’, where 10 workers are trapped. Reyna Gold Corp., GoGold Resources Inc., GR Silver Mining Ltd., Endeavour Silver Corp., Prime Mining Corp., Kootenay Silver Inc., Silver Spruce Resources Inc., and Vizsla Silver Corp., reported the best drilling intercepts in Mexico on the second week of September, 2022. ON EXPLORATION, In Sonora, Aztec completed the first seven holes of phase 3 drilling program at its Cervantes project, Silver Spruce and its partner Colibri Resources Corp., drilled 19 RC holes for a total of 2,005m at its El Diamante project and reported initial results from the first holes, Reyna Gold announced results from 22 holes totaling 3,823m of its ongoing 10,000m regional exploration drill program at its la Gloria project, and Infinitum Copper reported completion of the first phase of the current program at its flagship La Adelita project. In Chihuahua, Kootenay released results from eleven holes collared at its Columba project.  In Zacatecas, Galore reported that completed 3 holes in the San Jose area at its Dos Santos project. ON MINING, no relevant news. ON FINANCING, Barksdale announced a non-brokered private placement for gross proceeds of $2M (San Javier project, Sonora). Sierra Madre closed the first tranche of its previously announced brokered private placement for aggregate gross proceeds of $10M (La Guitarra property, State of Mexico). ON RESOURCES AND DEVELOPMENT, Bear Creek announced that it engaged Unison to design and Renoir to implement a 32-week performance improvement program at its Mercedes mine in Sonora. Vizsla reported results from 14 new holes drilled within the Tajitos-Copala resource area at its flagship Panuco project, Sinaloa.  Endeavour reported results from its ongoing drilling program at its Parral project in Chihuahua. GoGold released results from seven new holes drilled at the El Favor East Deposit within its Los Ricos North property in Jalisco. GR Silver reported results from 3 holes drilled at its San Marcial project in Sinaloa. Prime Mining announced additional phase 2 drill results from its Los Reyes project in Sinaloa. Regency Silver completed a 2,000m drilling program at its flagship Dios Padre project in Sonora. ON DEALS AND CORPORATE ISSUES, Aztec announced the appointment of a new member to its Board of Directors (Cervantes project, Sonora). Vizsla announced that it has filed its 2022 annual report with the U.S. Securities and Exchange Commission (SEC) (Panuco project, Sinaloa).  Riverside and BHP extended into a fourth year its Sonora Mexico exploration program. Galore reported results of its annual general meeting of shareholders and announced the grant of incentive stock options to directors and officers (Dos Santos project, Zacatecas). Gatos Silver provided bi-weekly status report in accordance with National Policy 12-203 – Management Cease Trade Orders due to the delay in the filing of  annual reports which includes its audited consolidated financial statements, together with the management’s discussion and analysis, relating to the audited annual financial statements, and the Chief Executive Officer and Chief Financial Officer certificates relating to its annual filings for the years 2021 and 2022 (Cerro Los Gatos, Chihuahua). ON SOCIAL RESPONSIBILITY, Peñoles and Fresnillo plc support the Heroic Fire Department and the Red Cross with supplies and training.

ON MEXICO ISSUE

  • Equinox Gold Corp., informed that mining activities at its Los Filos mine in Guerrero have been temporarily suspended due to an illegal blockade by members of the nearby Mezcala community. The blockade is preventing delivery of certain supplies to the Los Filos Mine that are required to maintain operations. 
  • Rocío Nahle, Secretary of Energy announced that Lithium for Mexico (LitioMx) will hold the first meeting of its Board of Directors on September 20, 2002. The secretary added that the use of lithium is essential for the energy transition, since it allows the production of batteries. “Right now, it is in high demand around the world for its power to store electricity,” she stressed. She recalled that wind and solar plants are intermittent sources of energy, so “white gold” represents a great opportunity for the Mexican energy sector.
  • The Attorney General’s Office (FGR) reported that three arrest warrants have been issued against the same number of people, for the events that occurred in the Coahuila mine ‘El Pinabete’, where 10 workers are trapped. Since last August 5, the FGR began the investigation procedure for the events that occurred in the mine, owned by the mining company ‘El Pinabete’ S.A de C.V. The FGR reported that the arrest warrants are for the probable commission of the crime provided for and sanctioned in article 150 in relation to article 149 of the General Law of National Assets.
  • Mexican President, Andrés Manuel López Obrador does not rule out comprehensive mining law reform. A month after the collapse of a coal mine in Sabinas, Coahuila, where 10 miners remain trapped and rescue works do not seem to yield results, President López Obrador said he does not rule out a comprehensive reform to the Mining Law, aimed at preventing such incidents from happening again. The reform would also set stricter rules for extractive activities. López Obrador did not mention exactly when is he planning to propose his reform, but it seem to have the support from at least most of MORENAs senators and one of the most important Unions in Mexico.
  • Reyna Gold Corp., GoGold Resources Inc., GR Silver Mining Ltd., Endeavour Silver Corp., Prime Mining Corp., Kootenay Silver Inc., Silver Spruce Resources Inc., and Vizsla Silver Corp., reported the best drilling intercepts in Mexico on the second week of September, 2022. Details are shown in the table below:

ON EXPLORATION

  • Aztec Minerals Corp., completed the first seven holes of phase 3 drilling program at its Cervantes project in Sonora to drill test three targets: California, California Norte and Jasper.  The company has drilled a total of 1,607m in seven holes from the 3,000m planned in eleven holes. Assay results are pending and are expected to arrive in the next coming weeks.
  • Silver Spruce Resources Inc., and its partner Colibri Resources Corp., drilled 19 RC holes, being 10 holes at the La Prieta target and 9 holes at El Pillado target, for a total of 2,005m at its El Diamante project. Highlights of the drill intersections at El Pillado target include hole DIA22-01 with five intervals to 3m with two sections exceeding 1% Zn; hole DIA22-02 with six intervals to 3m with one section containing 3.9% Zn; hole DIA22-05 with five intervals with significant metal values, including 24-30m (high silver to 251 g/t Ag, Zn to 1.9 %), 33-36m (Ag to 397 g/t, Pb+Zn to combined 11.2.%), 43.5-51m (Ag to 257 g/t, Pb+Zn to 13.1.%), 78-81m (Ag to 36 g/t, Pb+Zn to 8.5.%); hole DIA22-06 with a zone of 3m (Ag to 60 g/t and Pb to 1.21%); and hole DIA22-08 with the highest gold of 0.934 g/t Au at a depth of 13.5m with low Ag and base metal values. Final geochemical assay results from drilling at the La Prieta target are currently being compiled and the results will be released soon.
  • Reyna Gold Corp., announced results from 22 holes totaling 3,823m of its ongoing 10,000m regional exploration drill program at its la Gloria project in Sonora, where the company has tested five target areas to date. Drilling highlights at La Republicana target include hole LG-22-30 with 1.45 g/t Au over 59m including 5.96 g/t Au and 20 g/t Ag over 2.85m with a subinterval of 21.5 g/t Au and 30 g/t Ag over 0.8m; 2.29 g/t Au over 6.65m with a subinterval of 4.2 g/t Au and 18 g/t Ag over 3.50m; 6.41 g/t Au and 47 g/t Ag over 2.8m, with a subinterval of 19.5 g/t Au, 141 g/t Ag, 0.3% P, and 0.2% Zn over 0.12m; and 5.79 g/t Au and 52 g/t Ag over 2.95m, with a subinterval of 19.5 g/t Au, 168 g/t Ag, 0.2% Pb, and 0.2% Zn over 0.70m; and hole LG-22-028 with 935 g/t Ag over 5.50m, including 4,640 g/t Ag, 0.93% Cu, and 0.2% Zn over 1m, plus 0.22 g/t Au over 27.30m, including 2.13 g/t Au over 1m, plus 1.49 g/t Au over 0.4m. The company looks forward to additional drilling in La Republicana target.
  • Infinitum Copper Corp., reported completion of the first phase of the current program at its flagship La Adelita project in Sonora. The interpretation of the Magneto Telluric geophysical program is now completed and show good correlation with historic drilling. The strongest anomalies are still untested by drilling. The company also completed 12 holes on the trend of high-grade Cu-Au-Ag skarn mineralization at the Cerro Grande Zone with a total of 2,574m, including 1,848 samples that have been sent to the lab for analysis with results pending.
  • Kootenay Silver Inc., released results from eleven holes collared at its Columba project in Chihuahua. Seven out of the eleven holes were collared at the D Vein and 4 at the B Vein. Drilling highlights at D Vein include hole CDH-22-125 with 158 g/t Ag, 0.1% Pb, and 0.2% Zn over 1.83m, plus 540 g/t Ag, 0.26 g/t Au, 0.4% Pb, and 1.6% Zn over 34.45m, including 1,746 g/t Ag, 0.88 g/t Au, 1.1% Pb, and 5.2% Zn over 9.70m, including 2,498 g/t Ag, 1.28 g/t Au, 1.6% Pb, and 7.5% Zn over 6.10m, including 5,840 g/t Ag, 3 g/t Au, 3.1% Pb, and 17.2% Zn over 2.45m; hole CDH-22-127 with 788 g/t Ag, 0.6% Pb, and 1.3% Zn over 0.98m, plus 103 g/t Ag, 0.04% Pb, and 0.1% Zn over 1m, plus 136 g/t Ag, 0.01% Pb, and 0.1% Zn over 1m; hole CDH-22-128 with 136 g/t Ag, 0.1% Pb, and 0.2% Zn over 20m, including 520 g/t Ag, 0.33 g/t Au, 0.03% Pb, and 0.1% Zn over 2m, plus 277 g/t Ag, 0.3% Pb, and 1.2% Zn over 1m, plus 136 g/t Ag, 0.6% Pb, and 1.3% Zn over 2m; and hole CDH-22-131 with 150 g/t Ag, 0.1% Pb, and 0.2% Zn over 16m, including 311 g/t Ag, 0.2% Pb, and 0.4% Zn over 4.86m, including 603 g/t Ag, 0.02% Pb, and 0.1% Zn over 0.59m. On the B Vein, the most significant drill intersect was encountered in hole CDH-22-134 with 109 g/t Ag and  0.1% Zn over 6.6m, including 251 g/t Ag, 0.1% Pb, and 0.1% Zn over 1.5m, plus 279 g/t Ag, 0.1% Pb, and 0.2% Zn over 0.5m. These drilling results extend known mineralization along strike and beneath existing drilling at both the D Vein and B Vein targets.
  • Galore Resources Inc., completed 3 holes in the San Jose area at its Dos Santos project in Zacatecas. The most significant mineralization was encountered in holes SJ20 with 2.26 g/t Au over 1.20m, plus 2.06 g/t Au over 0.85m; and hole SJ21 with three contiguous intervals of 3.69 g/t Au, 0.79 g/t Au, and 0.59 g/t Au over 1.80m, 0.70m, and 1.30m respectively.

ON MINING

  • No relevant news.

ON FINANCING

  • Barksdale Resources Corp., announced a non-brokered private placement for gross proceeds of $2M. Part of the gross proceeds will be used to finance exploration activities   at its San Javier project, Sonora, as well as for working capital and general corporate purposes. The Company also proposes to extend by a further four months, the expiry date of a total of 7,597,836 share purchase warrants, issued September 29, 2020 and 690,790 share purchase warrants issued October 1, 2020 in connection with a non-brokered private placement. These aggregate 8,288,826 2020 Warrants are exercisable into 8,288,826 common shares and remain at an exercise price of $0.55 per share.
  • Sierra Madre Gold and Silver Ltd., closed the first tranche of its previously announced brokered private placement for aggregate gross proceeds of $10M. The company will use the gross proceeds for the development of it’s the La Guitarra property in the State of Mexico, advancement of engineering studies and general working capital purposes.

ON RESOURCES AND DEVELOPMENT

  • Bear Creek Mining Corporation announced that it engaged Unison Mining Consulting Pte. Ltd., to design and Renoir Management Corporation to implement a 32-week performance improvement program at its Mercedes mine in Sonora. The planned improvements are to re-open closed mining areas to achieve production rates of over 70K Oz Au per year and reduce costs. This program will cost USD $2.15M.
  • Vizsla Silver Corp., reported results from 14 new holes drilled within the Tajitos-Copala resource area at its flagship Panuco project, Sinaloa.  Drilling highlights include hole CS-22-182 with 1,935 g/t Ag and 15.47 g/t Au (2,913 g/t AgEq) over a true width (TW) of 1.46m; hole CS-22-128 with 299 g/t Ag and 2.08 g/t Au (427 g/t AgEq) over a TW of 2.50m, including 995 g/t Ag and 7.6 g/t Au (1,472 g/t AgEq) over a TW of 0.46m; hole CS-22-185A with 302 g/t Ag and 2.02 g/t Au (426 g/t AgEq) over a TW of 1m; and hole CS-22-196 with 278 g/t Ag and 2.33 g/t Au (426 g/t AgEq) over a TW of 2.16m. “The new drill results support a NW-plunging high-grade zone with an average vertical extent of 250 metres and approximate strike length of 500 metres”.
  • Endeavour Silver Corp., reported results from its ongoing drilling program at its Parral project in Chihuahua. High grade silver was encountered in several holes. Drilling highlights include hole CUV-78 with 199 g/t Ag, 4.7% Pb, and 2.6% Zn (428 g/t AgEq) over 3.48m, including 501 g/t Ag, 8% Pb, and 6.5% Zn (971 g/t AgEq) over 0.27m; hole CUV-80 with 322 g/t Ag, 5.2% Pb, and 1.6% Zn (528 g/t AgEq) over 1.67m, including 605 g/t Ag, 14.8% Pb, and 3.5% Zn (1,150 g/t AgEq) over 0.53m; hole VCU-90 with 664 g/t Ag, 1.9% Pb, and 0.8% Zn (747 g/t AgEq) over 5.56m, including 5,600 g/t Ag, 15.3% Pb, and 1.7% Zn (6.096 g/t AgEq) over 0.22m, plus 145 g/t Ag, 0.2% Pb, and 0.5% Zn (168 g/t AgEq) over 3.05m, including 247 g/t Ag, 0.3% Pb, and 1.9% Zn (325 g/t AgEq) over 0.55; and hole CUV-96 with 242 g/t Ag, 0.5% Pb, and 1.7% Zn (317 g/t AgEq) over 5.34m, including 711 g/t Ag, 0.5% Pb, and 2.1% Zn (806 g/t AgEq) over 0.52m. The company has drilled since April 2022 over 5,300m in 23 holes, totaling 8,100m year to date with the aim to define and extend mineralized zones. The high grade Ag results show the potential for resource expansion at depth and along strike in the El Verde and Sierra Plata Deep areas along the Veta Colorada structure.
  • GoGold Resources Inc., released results from seven new holes drilled at the El Favor East Deposit within its Los Ricos North property in Jalisco. Drilling highlights include hole LRGF-22-136 with 0.24 g/t Au and 84 g/t Ag (1.35 g/t AuEq or 101 g/t AgEq) over 4.9m, plus 0.52 g/t Au and 108 g/t Ag (1.96 g/t AuEq or 147 g/t AgEq) over 47.6m, including 2.07 g/t Au and 319 g/t Ag (6.32 g/t AuEq or 474 g/t AgEq) over 10.7m, including 13.47 g/t Au and 615 g/t Ag (21.66 g/t AuEq or 1,625 g/t AgEq) over 1.1m; and hole LRGF-22-124 with 0.31 g/t Au and 111 g/t Ag (1.79 g/t AuEq or 134 g/t AgEq) over 22m, including 1.65 g/t Au and 530 g/t Ag (8.72 g/t AuEq or 654 g/t AgEq) over 3.4m, including 5.05 g/t Au and 1,456 g/t Ag (24.46 g/t AuEq or 1,835 g/t AgEq) over 0.9m. These drill results show extension of the zone to the east and additional high grade infill.
  • GR Silver Mining Ltd., reported results from 3 holes drilled at its San Marcial project in Sinaloa, to follow-up on lateral and down dip, the  high grade encountered previously at the Southeast Area.  Hole SMS22-11 intersected 92 g/t Ag and 0.02 g/t Au over 75.7m, including 102 g/t Ag, 0.01 g/t Au, and 0.1% Zn over 63.6m, including 1,253 g/t Ag, 0.02 g/t Au, 0.5% Pb, and 1.4% Zn over 0.3m, plus 1,032 g/t Ag, 0.01 g/t Au, 0.5% Pb, and 1.9% Zn over 0.4m. Hole SMS22-12 encountered 98 g/t Ag, 0.03 g/t Au, 0.4% Pb, and 0.6% Zn over 44.5m, including 1,059 g/t Ag, 0.01 g/t Au, 0.2% Pb, and 0.5% Zn over 0.2m, plus 537 g/t Ag, 0.06 g/t Au, 0.4% Pb, and 1% Zn over 1m. Hole SMSP22-022 intersected 426 g/t Ag, 0.1% Pb, and 0.2% Zn over 3.2m, including 1,932 g/t Ag, 0.05% g/t Au, 0.2% Pb, and 0.6% Zn over 0.5m. GR Silver informed that additional drilling is in progress aiming to continuously expand lateral and down dip continuity of the Ag mineralization.
  • Prime Mining Corp., announced additional phase 2 drill results from 42 infill and step out drill holes collared at Guadalupe Corridor within its Los Reyes project in Sinaloa. Drilling highlights include hole 22GE-73 with 5.01 g/t Au and 328 g/t Ag over a true width (TW) of 1.9m; hole 22GE-72 with 1.65 g/t Au and 236 g/t Ag over a TW of 13.5m, plus 0.95 g/t Au and 124 g/t Ag over a TW of 6m, plus 2.52 g/t Au and 365 g/t Ag over a TW of 1.5m; hole 22GE-105 with 1.46 g/t Au and 56 g/t Ag over a TW of 14.4m, plus 1.01 g/t Au and 67 g/t Ag over a TW of 1.5m; hole 22GE-70 with 1.38 g/t Au and 38 g/t Ag over a TW of 4.5m; hole 22GE-59 with 2.77 g/t Au and 440 g/t Ag over a TW of 1.1m; hole 22GE-563 with 0.97 g/t Au and 267 g/t Ag over a TW of 2.5m; hole 22GE-77 with 1.28 g/t Au and 45 g/t Ag over a TW of 2.6m; hole 22GE-80 with 1.55 g/t Au and 43 g/t Ag over a TW of 5.7m, plus 1.72 g/t Au and 43 g/t Ag over a TW of 4.8m; hole 22GE-85 with 16.1 g/t Au and 391 g/t Ag over a TW of 0.5m; and hole 22GE-76 with 10.41 g/t Au and 683 g/t Ag over a TW of 0.7m, plus 0.92 g/t Au and 945 g/t Ag over a TW of 1.1m, These drill results expand the Au-Ag mineralization potential at Guadalupe Corridor.
  • Regency Silver Corp., completed a 2,000m drilling program at its flagship Dios Padre project in Sonora. This program was designed to test a large IP anomaly only 550 metres to the north of the existing Dios Padre historical workings to determine whether it represents a significant continuation of the mineralization, as well as  to test for extensions to the existing Dios Padre mineral resource. Final assay results are expected in early October. The Company will release the results shortly thereafter.

ON DEALS AND CORPORATE ISSUES

  • Aztec Minerals Corp., announced the appointment of a new member to its Board of Directors (Cervantes project, Sonora).
  • Vizsla Silver Corp., announced that it has filed its 2022 annual report with the U.S. Securities and Exchange Commission (SEC). It includes its management discussion and analysis, annual information form, and audited financial statements for the year ended April 30, 2022.  (Panuco project, Sinaloa).
  • Riverside Resources Inc., and BHP extended its Exploration Funding Agreement (EFA) into a fourth year for its Sonora Mexico exploration program. The plan is to move into the next exploration phase focusing on five copper projects in Sonora, Mexico with a currently approved USD $1.1M in exploration funding to work on the Llano de Nogal district and USD $0.5M in ongoing High Value Work programs in the Sonora Projects for a total so far allocated budget of USD $1.6M exploration work on the specified properties in the EFA.
  • Galore Resources Inc., reported results of its annual general meeting of shareholders and announced the grant of 7.1M incentive stock options to directors and officers, exercisable at a price of $0.10 for a period of 5 years from the date of grant (Dos Santos project, Zacatecas).
  • Gatos Silver Inc., provided bi-weekly status report in accordance with National Policy 12-203 – Management Cease Trade Orders due to the delay in the filing of annual reports which includes its audited consolidated financial statements, together with the management’s discussion and analysis, relating to the audited annual financial statements, and the Chief Executive Officer and Chief Financial Officer certificates relating to its annual filings for the years 2021 and 2022 (Cerro Los Gatos, Chihuahua).

ON SOCIAL RESPONSIBILITY

  • Peñoles and Fresnillo plc have supported for more than two decades to the Heroic Fire Department and the Red Cross. The two companies have resolutely supported these institutions in the communities where they operate, by donating medical supplies to the Red Cross and training for firefighters.

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

On the picture above, Cu mineralization related to a porphyry copper system in a project in Sinaloa, Mexico.  Photo by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the Fourth Week of August, 2022.

Quartz vein displaying boiling texture.

By Miguel A Heredia

During the 34th week of the year (August 22nd to August 28th, 2022), at least 16 press releases were announced by companies working in Mexico, and 7 news published by the media with seven commenting on Mexican issues, four communicating production and financial results, four disclosing deals and corporate issues, three reporting resources and developments of their properties, three announcing financial issues, and two informing on exploration results. ON MEXICO ISSUES, Colibri and Oroco reported the best drilling intercepts in Mexico on the fourth week of August, 2022. The government of Mexico announced, through a decree in the Official Gazette of the Federation, the creation of the state company Litio para Mexico (LitioMx). According to the Mining Chamber of Mexico (CAMIMEX), a total of 822 mining projects remain on hold and represent an amount of USD $959M.   Jaime Gutierrez Núñez, president of CAMIMEX stated that small-scale coal mining is like “the blood diamonds” of Africa. Mexico’s mining industry plans to invest USD $5.5B in 2022, 15.2% more than in 2021. Mining in Mexico grew by 7.1% in 2021 despite friction with the government. The governor of Durango, José Rosas Aispuro, considered unfair that the mining-metallurgical sector is one of the economic sectors with the highest tax burden in the country. In Mexico there are more than 1,209 mining projects that have been developed in 26 states of the Republic.  ON EXPLORATION, In Sonora, Colibri reported results from the second half of its Phase 1 drill program completed on its Evelyn project, and Tocvan announced latest drill results from its Pilar project.  ON MINING, Guanajuato Silver, Discovery Silver, Minera Alamos, and Orogen reported Q2, 2022 production and financial results from their Mexican operations. ON FINANCING, Canasil announced a non-brokered private placement for gross proceeds of up to $550K (Nora project, Durango). Minera Alamos arranged a USD $3M working capital facility and announced a closed a USD $4.35M equity raise (Cerro de Oro project, Zacatecas). Eric Sprott announced holdings in Orex Minerals Inc. ON RESOURCES AND DEVELOPMENT, Discovery Silver reported Q2, 2022 results from its flagship Cordero project, Chihuahua.  Minera Alamos provided an update on its Cerro de Oro project, Zacatecas. Oroco successfully tested the western side of the North Zone at its Santo Tomas project in Sinaloa.  ON DEALS AND CORPORATE ISSUES, Monumental announced that its common shares are now trading on the OTCQB Venture Market under the symbol MNMRF (Jemi project, Coahuila). Argonaut announced the appointment of its Vice President, Canadian Operations (La Colorada mine, Sonora).  Aztec purchased 35% interest in the Cervantes property in Sonora from Kootenay. Colibri announced reinstatement of trading on the TSX Venture Exchange and the appointment of its CFO.  ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUE

  • Colibri Resource Corporation and Oroco Resource Corp., reported the best drilling intercepts in Mexico on the fourth week of August, 2022. Details are shown in the table below:
·        The government of Mexico announced, through a decree in the Official Gazette of the Federation, the creation of the state company Litio para Mexico (LitioMx). The Government of Mexico created LitioMx as a decentralized public organism of the Federal Public Administration and coordinated by the Ministry of Energy, with its own legal personality and assets and with technical, operational and management autonomy. The objective of LitioMx will be the exploration, exploitation, benefit and use of lithium, located in national territory, as well as the administration and control of the economic value chains of such mineral.
·        According to the Mining Chamber of Mexico (CAMIMEX), a total of 822 mining projects remain on hold and represent an amount of USD $959M, which are still waiting for better conditions to be able to reactivate. Jaime Núñez, president of CAMIMEX stated that is essential to encourage exploration since unfortunately in the last seven years we have seen a decrease in investments in exploration, leaving several projects on standby.
·        Jaime Gutierrez Núñez, president of CAMIMEX stated that small-scale coal mining is like “the blood diamonds” of Africa, and that the Federal Electricity Commission (CFE) should certify where the mineral it buys comes from and its conditions.
·        Mexico’s mining industry plans to invest USD $5.5B in 2022, 15.2% more than in 2021, but according to the Mexican Mining Chamber (CAMIMEX), it will remain below the record figure of USD $8.04B seen in 2012 amid difficult conditions. Growing security problems, a high tax burden and the government’s decision to stop granting concessions for projects have prevented investments in the sector from increasing faster, said CAMIMEX head Jaime Gutiérrez.
·        Mining in Mexico grew by 7.1% in 2021 despite friction with the government. According to CAMIMEX’s annual report, this increase positioned it as the only productive activity that recovered and even exceeded the fall of 2020, when the covid-19 pandemic initially stopped its operations because the government did not consider it “essential activity”. Even without tax incentives, the mining sector presented an increase in its contribution to the gross domestic product (GDP) going from 2.3% in 2020 to 2.5% in 2021, and an annual advance in the proportion of industrial GDP from 8.3% to 8.6% in the same period.
·        The Governor of Durango, José Rosas Aispuro, considered unfair that the mining-metallurgical sector is one of the economic sectors with the highest tax burden in the country, even though it is an enabler that prevents the migration of people in the communities where it develops its production processes, for job creation and social benefits. Mining Entrepreneurs stated that mining generates jobs and is one of the industries that pays the most taxes, since in 7 years it has contributed more than MXP $240,000M (approximately USD $12B) in taxes and other rights.
·        In Mexico there are more than 1,209 mining projects that have been developed in 26 states of the Republic, in which 406,179 jobs have been generated and a production value that already exceeds MXP $334,782M (approximately USD $16.7B). Among the main minerals extracted from these deposits are gold, copper, silver, zinc, iron, molybdenum, lead, fluorite, among others. For its exploration and exploitation, in 2021 alone, investments have been made for more than USD $4,810M and more than USD $5,538M are expected by the end of 2022. Of the 1,209 mining projects that exist in Mexico, 286 are in Sonora, Chihuahua has 160 and Durango has 128, which positions them as the entities with the greatest economic benefit thanks to mining concessions. Of the total number of projects, 749 correspond to precious metals; 180 to polymetallic minerals, 167 to copper, 71 to iron ore and the remaining 42 to other metals and minerals. According to the Mexican Mining Chamber (CAMIMEX), there are currently a total of 263 projects in the exploration stage, 76 in production, 39 in the development stage, while 822 projects are being postponed and 9 operations are reported as closed. However, the agency assures that, since the start of the current administration, the federal government has stopped granting permits or concessions for the exploration and development of new projects, since so far more than USD $959.7M dollars have not been invested. .
ON EXPLORATION
·        Colibri Resource Corporation reported results from the second half of its Phase 1 drill program completed on its Evelyn project, Sonora, and included 3,101m of RC drilling completed in 22 holes. In total, Phase 1 consisted of 6,223m of RC drilling in 42 holes.  Highlights include hole EVE22-042 with 0.17 g/t Au over 86m, including 0.32 g/t Au over 22m; hole EVE 22-043 with 0.92 g/t Au over 3m; hole EVE22-046 with 1.94 g/t Au over 2m, including 3.36 g/t Au over 1m; hole EVE22-044 with 0.63 g/t Au over 6m; hole EVE22-036 with 1.3 g/t Au over 1m; hole EVE22-033 with 1.92 g/t Au over 1m; hole EVE22-030 with 0.13 g/t Au over 87m, including 0.34 g/t Au over 8m; hole EVE22-029 with 1.39 g/t Au over 5m; and hole EVE22-028 with 0.13 g/t Au over 19m. In addition to drilling, Colibri is completing the geological mapping as well as conducting soil sampling to infill the historical property wide soil surveys.
·        Tocvan Ventures Corp., informed that seven holes were completed at its Pilar project in Sonora, totalling 1,382m and released results from the three first drill holes where the most significant drill intercepts was encountered in hole JES-22-67 with 0.4 g/t Au over 30.5m, including 7.6 g/t Au over 1.5m. Results are pending for the remaining four holes.
ON MINING
·        Guanajuato Silver Company Ltd., reported Q2, 2022 production and financial results from their El Cubo and Pinguico mines in Guanajuato (all amounts in American dollars). The company milled 94,212 tonnes to produce 155, 912 Oz Ag and 2,161 Oz Au (or 337,760 Oz AgEq) wit metallurgical recoveries of 80.91% and 82.52% respectively, at cash and all included sustaining cost (AISC) of $16.98 and $24-06 per Oz AgEq respectively. Guanajuato Silver reported revenue of $6.13M; cost of sales of $7.8M; mine operating loss of ($1.66M); net loss of ($3.5M); EBIDTA of ($1.1M); and working capital of ($2.04M). The company sold 159,840 Oz Ag, and 2,195 Oz Au (or 342, 987 Oz AgEq) at realized prices of $22.56 and $1,873 per Oz respectively.
·        Discovery Silver Corp., reported Q2, 2022 financial results (all amounts in Canadian dollars). The company reported cash and cash equivalents of $63.6M; total assets of  $101.8M; total current liabilities of $2.54M; working capital of $62.5M; and total shareholder´s equity of $99.2M.
·        Minera Alamos Inc., reported Q2, 2022 production and financial results from its Santana mine in Sonora (all amounts in Canadian dollars). The company reported that monthly mine production rates were approximately 300K tonnes, but with the opening of the Nicho Main Zone during Q2, the company is now in the position to ramp up production levels. Alamos sold 3,128 Oz Au and reported revenues of $7.3M; cost of goods sold of  $3.26M; direct cost of production of $16 per Oz; income from operations of  $2.6M; net income of $2.7M; cash and cash equivalents (including marketable securities) of  $9M; and working capital of $17M.
·        Orogen Royalties Inc., announced Q2, 2022 financial results (all amounts in Canadian dollars). The company reported revenue of $959.8K comprised from the Ermitaño royalty and $17.5K generated from prospect generation activities; project generation cost of $433.5K and recovered $448.9K in expense reimbursement from partners on optioned projects; general and administrative expenses of $875.2K; loss of $754.8K; net loss from operations of $648.6K; cash and cash equivalents from operating activities of $131.3K; cash from operating activities excluding changes in cash-cash working capital of $257.9K ; and working capital of $10.5M including $3.05M in cash and cash equivalents and $5.13M in short term investments and no long-term debt.
ON FINANCING
·        Canasil Resources Inc., announced a non-brokered private placement for gross proceeds of up to $550K. Gross proceeds will be used to fund the company´s exploration programs (Nora project, Durango).
·        Minera Alamos Inc., arranged a USD $3M working capital facility and announced a closed a USD $4.35M equity raise of common shares at $0.55/share. The combination of both enhancing the company´s working capital position as development work extends to the advancement of the Cerro de Oro project in Zacatecas.
·        Eric Sprott announced that 18,333,333 common share purchase warrants of Orex Minerals Inc., expired unexercised representing a decrease in holdings of approximately 7.2% of the outstanding common shares on a partially diluted basis since the date of the last early warning report. As a result of the warrants expiry, Mr. Sprott now beneficially owns and controls 36,666,666 shares representing approximately 19.6% of the outstanding shares on a noun-diluted basis.
ON RESOURCES AND DEVELOPMENT
·        Discovery Silver Corp., reported Q2, 2022 results from its flagship Cordero project, Chihuahua. The company reported that initial results from the Preliminary Feasibility Study (PFS) metallurgical work had recoveries of 90-95% for Ag, Pb, and Zn. It also reported that Phase 2 drilling program intercepted excellent grades below the Preliminary Economic Assessment (PEA) pit including hole C21-564 with 95 g/t Ag, 0.21 g/t Au, 1.9% Pb, and 4.5% Zn (337 g/t AgEq) over 33.9m, and hole C21-560 with 234 g/t Ag, 0.15 g/t Au, 3.8% Pb, and 6.5% Zn (606 g/t AgEq) over 18.1m, as well as hole C22-610 collared outside the current resource with 115 g/t Ag, 0.05 g/t Ag, 3.7% Pb, and 4.1% Zn (388 g/t AgEq) over 32.6m, including 187 g/t Ag, 0.05 g/t Au, 6.5% Pb, and 7.2% Zn (660 g/t AgEq) over 17.8m.
·        Minera Alamos Inc., provided an update on its Cerro de Oro project, Zacatecas. The company informed the sign off of the documentation for its Cerro de Oro project surface rights agreement in Zacatecas, allowing the company to move forward with the permitting process for the construction of its second gold operation in Mexico. Minera Alamos also informed that the NI 43-101 compliant Preliminary Economic Assessment (PEA) is nearly to be completed and is expected to get it done by next month.
·        Oroco Resource Corp., successfully tested the western side of the North Zone at its Santo Tomas project in Sinaloa by drilling 3,050m. Drilling has confirmed and expanded the 2009 Grade shell model of Cu > 0.30% derived from the historical drilling described in the Company’s 2019 Technical Report. A total of 26 holes (18,136 m of drilling) have now been completed in the North Zone, spanning 1,100m of strike length, with intersections of good grade mineralization returned in all holes for which the Company has received assays. Highlights of the last holes collared at the western side of the North Zone include hole N015 with 0.31% Cu, 0.009% Mo, 0.025 g/t Au, and 2 g/t Ag (0.36% CuEq) over 292m; hole N016 with 0.32 g/t Cu, 0.006% Mo, 0.032 g/t Au, and 2 g/t Ag (0.73% CuEq) over 95.4m, plus 0.39% Cu, 0.016%Mo, 0.022 g/t Au, and 4 g/t Ag (0.46% CuEq) over 44.7m, plus 0.26% Cu, 0.010% Mo, 0.014 g/t Au, and 2 g/t Ag (0.31% CuEq) over 88.7m; hole N017 with 0.31% Cu, 0.011% Mo, 0.02 g/t Au, and 2 g/t Ag (0.73% CuEq) over 63.8m, plus 0.22% Cu, 0.01% Mo, 0.02 g/t Au, and 1 g/t Ag (0.28% CuEq) over 159.2m; and hole N018 with 0.36% Cu, 0.011% Mo, 0.017 g/t Au, and 3 g/t Ag (0.42% CuEq) over 21m, plus 0.65% Cu, 0.012% Mo, 0.019 g/t Au, and 3 g/t Ag (0.68% CuEq) over 10m, plus 0.33% Cu, 0.012% Mo, 0.017 g/t Au, and 2 g/t Ag (0.38% CuEq) over 42.3m. The Company will commence a drill program targeted at testing the South Zone in 2022.  
ON DEALS AND CORPORATE ISSUES
·        Monumental Minerals Corp., announced that its common shares are now trading on the OTCQB Venture Market under the symbol MNMRF (Jemi project, Coahuila).
·        Argonaut Gold Inc., announced the appointment of its Vice President, Canadian Operations, effective August 29, 2022 (La Colorada mine, Sonora).
·        Aztec Minerals Corp., purchased indirectly from Kootenay Silver Inc., 35% interest in the Cervantes property in Sonora by issue 10M common shares at a price of CAD $0.25 per Aztec share for aggregate consideration of CAD $2.5M. Kootenay will retain a 0.5% Net Smelter Returned Royalty. Following the closing of the Transaction, Kootenay owns a total of 10.68M Aztec shares, which represents approximately 11.85% of the issued and outstanding Aztec shares on an undiluted basis.
·        Colibri Resource Corporation announced reinstatement of trading of its common shares on the TSX Venture Exchange. The shares will re-open for trading on the Exchange at the opening of trading on Monday, August 29. The company also announced the appointment of its new CFO (Evelyn project, Sonora).
ON SOCIAL RESPONSIBILITY
·        No relevant news.
 
Content like what you have just read can be seen at https://gambusinoprospector.com/ and at LinkedIn’s Mexico Mineral Exploration Group.

On the picture above, boiling texture in a low-intermediate epithermal vein system in a project in Durango, Mexico.  Photo by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the Third Week of August 2022

By Jorge Cirett

During the 33rd week of the year (August 15th to August 21st, 2022), at least 21 press releases were announced by companies working in Mexico. Four companies posted exploration advances on their properties and two presented production results for the second quarter. Two companies reported on underground sampling and drilling on their advanced properties. One company announced the staking of an epithermal vein system and one more sold the final 20% interest it held on a property.  ON MEXICO ISSUES, no relevant news. ON EXPLORATION, in Sonora, Minaurum commenced the rehabilitation and sampling of historic workings at Alamos; Tocvan Ventures released results from the Pilar project. In Chihuahua, Kootenay Silver released drilling results from Columba. In Sinaloa, Prismo Metals commenced drilling at Palos Verdes. ON MINING, Mag Silver and Starcore International presented financial/operational results for the second quarter 2022. ON FINANCING, Sierra Madre Gold and Silver elaborated on the private placement for $10 M in conjunction with the acquisition of La Guitarra project. Canuc and Minera Alamos closed financing rounds for C270 K and $4.37 M. Prismo Metals intends to complete a non brokered private placement for $150 K. Torex Gold finalized an agreement increasing the available credit from $150 M to $250 M.  ON RESOURCES AND DEVELOPMENT, Sonoro Gold reported results from underground sampling at Cerro Caliche, in Sonora. Silver Dollar reported results from four holes at La Joya, in Durango. ON DEALS AND CORPORATE ISSUES, Orogen Royalties staked the La Verdad epithermal project in Zacatecas. Gold79 Mines sold its remaining 20% interest on Taviche, Oaxaca, to Minaurum Gold. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • No Relevant News.

ON EXPLORATION

  • Kootenay Silver Inc. released results from the first holes of the 15,000 m phase 4 drilling program at its Columba project in Chihuahua. Highlighted core-length results on the D vein comprise 11.3 m @ 449 gpt Ag (including 1 m @ 795 gpt Ag); 7.0 m @ 108 gpt Ag; 2.85 m @ 183 gpt Ag; 7.74 m @ 416 gpt Ag (including 1.5 m @ 1,395 gpt Ag, 0.9% Pb, 5.3% Zn); 2.0 m @ 190 gpt Ag, and 1.95 m @ 103 gpt Ag; 1.0 m @ 151 gpt Ag; 6.0 m @ 107 gpt Ag on the F vein.
  • Prismo Metals Inc. commenced the 2,000 m drill program at its Palos Verdes project in Sinaloa. “Previous shallow drilling has intersected high grade mineralization with the best intercept of 2,336 g/t Ag and 8.42 g.t Au over a true width estimated at 0.8 meters within a larger mineralized interval with 1,098 g/t Ag and 3.75 g/t Au over a true width of 2.3 meters.
  • Minaurum Gold Inc. begun rehabilitation of underground historic workings at its Alamos project in Sonora. “Initial rehabilitation to facilitate mapping and sampling of more than 1 km of workings will take several months to complete and will consist of securing and cleaning all underground areas, and removing and stockpiling backfill for possible future processing”. The Promontorio vein can be traced for more than 1 km on the surface and underground; the mine closed in 1896, having produced 70 M Oz Ag. In the 1960’s material from surface dumps and underground backfill was processed, with access cleared to the main haulage level and to the lower levels of the Promontorio mine. Minaurum is to re-log all Promontorio drill core, rehabilitate, map and sample the underground workings.
  • Tocvan Ventures Corp. released results from three drill holes at its Pilar project in Sonora. Highlighted core-length results comprise 16.8 m @ 0.1 gpt Au, 18 gpt Ag (including 6.1 m @ 0.3 gpt Au, 47 gpt Ag; 1.5 m @ 0.6 gpt Au, 185 gpt Ag); 138.8 m @ 0.1 gpt Au (including 30.5 m @ 0.4 gpt Au; which includes 1.5 m @ 7.6 gpt Au). Two of the holes support the presence of a third subparallel trend northeast of the main and 4-T trends.

ON MINING

  • Mag Silver Corp. announced financial results for the Q2 2022.  At Juanicipio (46% Mag Silver, 56% Fresnillo PLC), in Zacatecas, 154.1 K tonnes were processed through the Fresnillo plants. Producing 2.2 M Oz Ag, 5,119 Oz Au, 1,016 tonnes Pb, 1,599 tonnes Zn. The Juanicipio processing plant is about to be connected to the national electrical grid, with 85-90% of the 4,000 tonnes per day capacity expected to be reached by the end of 2022. By the end of the period Mag had $47.7 M of working capital, including $44.6 M in cash.
  • Starcore International Mines Ltd. presented production results for the Q1 2023, ended July 31, 2022. At the San Martin mine in Queretaro, 55.26 K tonnes were milled, averaging 1.70 gpt Au, 21.3 gpt Ag, recovering 89.4% Au, 49.1% Ag, to produce 2,925 Oz AuEq.  

ON FINANCING

  • Sierra Madre Gold and Silver Ltd. amended the terms of the previously disclosed “best efforts” brokered private placement. The offering is to raise now up to $10 M and is being conducted in conjunction with the proposed acquisition of the La Guitarra property in Estado de Mexico.
  • Canuc Resources Corp. announced the closing of a non-brokered private placement for gross proceeds of C$270 K (San Javier, Sonora).
  • Prismo Metals Inc. intends to complete a non-brokered private placement for gross proceeds of $150 K (Palos Verdes, Sinaloa).
  • Torex Gold Resources Inc. finalized a credit agreement with a syndicate of banks to increase the credit available form $150 M to $250 M and to extend the maturation of the facilities from 2023 to 2025. Torex expects the $311 M of cash on hand, no debt, strong forecast cash flow from El Limón Guajes and the $250 M available under the latest credit facilities place Torex on solid footing to fund the development of the Media Luna project. (El Limón-Guajes, Guerrero).
  • Kootenay Silver Inc. clarified that the news release headlined “Kootenay Resources Inc. Announces Private Placement financing of up to $800,000” is related to Kootenay Resources Inc. a private reporting issuer not related to the common stock of Kootenay Silver Inc. a TSX Venture listed company. Kootenay Resources Inc. is a spin-out from Kootenay Silver Inc. focused on British Columbia exploration, of which Kootenay Silver holds 3.2 M shares (Columba, Chihuahua).
  • Minera Alamos Inc. announced the closing of its non-brokered private placement for aggregate gross proceeds of $4.37 M, with no finder’s fees paid (Cerro de Oro, Zacatecas).

ON RESOURCES AND DEVELOPMENT

  • Sonoro Gold Corp. reported results from underground sampling at Cerro Caliche, in Sonora. A rotary handheld saw was used to obtain 34 continuous channel samples of vein and breccia material from the Cabeza Blanca underground workings. Three segments of one tunnel were sampled, averaging 3.9 @ 0.40 gpt Au, 3.5 m @ 3.07 gpt Au, 1.86 m @ 1.79 gpt Au. The highest interval sample returned 2 m @ 7.68 gpt Au. “The current resource estimate classified this 100-meter section as an inferred resource, but the underground sampling results, together with over 7,200 meters of new drilling data, will be included in an updated resource calculation being completed on the project”.
  • Silver Dollar Resources Inc. reported initial assay results from phase II drilling ongoing at the Noria portion of the La Joya project in Durango. A total of 1,899 m have been completed in 10 holes, with core length highlighted results on the first four comprising 26.85 m @ 1.0 gpt Au; 17.05 m @ 1.0% Zn; 9.90 m @ 0.9% Zn; 9.13 m @ 0.7% Zn; 19.35 m @ 192 gpt Ag, 0.27 gpt Au, 1.0% Pb, 2.2% Zn (including 5,0 m @ 451 gpt Ag, 0.62 gpt Au, 2.3% Pb, 4.6% Zn); 4.93 m @ 120 gpt Ag, 0.8% Pb, 0.8% Zn; 3.00 m @ 74 gpt Ag, 0.6% Pb, 2.2% Zn; 5.79 m @ 114 gpt Ag, 0.18 gpt Au, 0.4% Pb, 1.7% Zn; 4.43 m @ 23 gpt Ag, 0.26 gpt Au, 5.6% Zn.

ON DEALS AND CORPORATE ISSUES

  • Orogen Royalties Inc. announced the acquisition by staking of the La Verdad project in Durango. The 264-hectare project contains a low-sulfidation epithermal system with two subparallel quartz veins, Santa Rita and La Verdad along 2.5 kilometers of strike length, hosted in Cretaceous limestone. “Multiple stages of white, yellow and green quartz veins outcrop and display classic low sulfidation style textures. The Santa Rita and La Verdad veins may extend beneath shallow alluvium which covers over 40 percent of the potential vein strike”. A minor drilling program in 2013 tested only 100 m of strike length of the system.
  • Gold79 Mines Ltd. monetized its remaining 20% interest in the Taviche project, in Oaxaca. The transaction allows for the dissolution of the Mexican subsidiary and reduce costs. Additionally, Gold79 will not proceed with the previously announced private placement and will receive a C$230 K loan from management. Minaurum Gold Inc. has exercised the option for C$1 M for the remaining 20% interest in the Taviche project, “Once the option exercise is completed in accordance with its terms along with certain other transactions between the parties, Gold79 will pay CDN$800,000 for a full and final release regarding any claims associated with the project to Minaurum”.

ON SOCIAL RESPONSIBILITY

  • No Relevant Nes.

OBITUARY

  • Endeavour Silver and Aztec Mineral announced the sudden decease of Bradford Cooke, founder of those companies and a long-time promotor of the mining industry in Mexico. He will be missed.

On the image below: Silicified structure tens of meters wide running for several kilometers in the Sonoran Desert. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the Second Week of August, 2022.

Banded calcite vein

By Miguel A Heredia

During the 32nd week of the year (August 08th to August 14th, 2022), at least 27 press releases were announced by companies working in Mexico, and 2 news published by the media with twelve communicating production and financial results, four disclosing deals and corporate issues, three commenting on Mexican issues, three reporting resources and developments of their properties, three informing on exploration results, two announcing financing issues, and two discussing social issues. ON MEXICO ISSUES, Vizsla Silver, GR Silver, and Defiance Silver reported the best drilling intercepts in Mexico on the second week of August, 2022. According to a report from the Secretariat of Labor and Social Security, in the last three years, 979 mine inspections have been carried out throughout the country, of which 387 have been carried out in the coal zone of Sabinas, Coahuila. The General Directorate of Mines of the Ministry of Economy provisionally suspended works on 10 mining concessions in Sabinas Coahuila. ON EXPLORATION, In Coahuila, Monumental Minerals announced results of a recently satellite multispectral interpretation covering its Jemi Heavy Rare Earth Elements project. In Durango, Silver Wolf released 155 grab sample results collected during the ongoing surface sample program at its Ana Maria project which has returned some high-grade values up to 1,536 g/t Ag, 34% Pb, and 19.4% Zn. In Zacatecas, Defiance Silver provided an update on the 4,750m maiden drill program at its Lucita project, within its Zacatecas Silver property.  ON MINING, Argonaut reported Q2, 2022 production results from their Mexican mining operations. Aura provided a production guidance for 2022 on its Aranzazu mine in Zacatecas where it expects to produce between 115-120K Oz AuEq at cash cost between USD $645-690 per Oz AuEq produced.  Avino reported Q2, 2022 production and financial results from its Avino mine, Durango. Capstone reported Q2, 2022 production results from its Cozamin mine, Zacatecas. Endeavour reported Q2, 2022 production and financial results from their Guanacevi and Bolañitos mines in Durango and Guanajuato respectively. Gatos Silver reported Q2, 2022 production and financial results from its Cerro Los Gatos mine, Chihuahua. GoGold reported Q2, 2022 production and financial results from its Parral Tailings project, Chihuahua.  Golden reported Q2, 2022 production and financial results from its Rodeo mine, Durango. Orla reported Q2, 2022 production and financial results from its Camino Rojo mine, Zacatecas. SilverCrest reported Q2, 2022 production and financial results from its Las Chispas project, Sonora. Americas reported Q2, 2022 production results from its Cosala mine in Sinaloa. ON FINANCING, Advance announced a non-brokered private placement to raise gross proceeds of up to $200K (Sarape project, Sonora). Fabled informed about an extension of its non-brokered private placement (Santa Maria project, Chihuahua). Fortuna Silver reported Q2. 2022 from its San Jose mine, Oaxaca.  GoGold reported Q2, 2022 production and financial results from its Parral Tailings project, Chihuahua. Golden Minerals reported Q2, 2022 production and financial results from its Rodeo mine, Durango. ON RESOURCES AND DEVELOPMENT, GR Silver reported a new Ag discovery SE of its San Marcial Resource Area on its wholly-owned Plomosas project, Sinaloa. Pan American Silver reported Mineral Reserves and Mineral Resources as at June 30, 2022 for their Mexican properties. Vizsla released results from 26 new drill holes targeting the Tajitos-Copala resource area at its 100%-owned flagship Panuco project in Sinaloa.  ON DEALS AND CORPORATE ISSUES, Prismo announced that its common shares are now eligible for electronic clearing and settlement in the United States through the Depository Trust Company (“DTC”). Consolidated Zinc made several management changes (Plomosas mine, Chihuahua). Advance Lithium sold its royalty on three claims in Kenya to Orogen for USD $120K and the transfer of the 100% ownership of its Sarape property, Sonora. Kootenay amended the schedule on the final payment of its option agreement for 100% of the Columba high-grade silver project, Chihuahua.  ON SOCIAL RESPONSIBILITY, First Majestic released its 2021 Sustainability report. Peñoles and Fresnillo plc promote entrepreneurs.

ON MEXICO ISSUES

  • Vizsla Silver, GR Silver and Defiance Silver reported the best drilling intercepts in Mexico on the second week of August, 2022. Details are shown in the table below:
  • According to a report from the Secretariat of Labor and Social Security, in the last three years, 979 mine inspections have been carried out throughout the country, of which 387 have been carried out in the coal zone, which means that “39% of all the mining inspections that have been carried out in the coal zone of Sabinas (Sabinas, Nueva Rosita, Palau)”. In the coal region, in these three years, 27 mining operations have been closed; that is, 84% of all mine closures in the country, due to non-compliance with security measures; to date 15 remain in force. In addition, the Ministry of Economy has been informed of the existence of 12 concessions that presumably could have irregularities.
  • The General Directorate of Mines of the Ministry of Economy provisionally suspended the works on 10 mining concessions in Sabinas Coahuila, on August 11, until the employers or representatives of each of the work centers certify compliance with the measures dictated in each one of the respective files after the inspections carried out by the Ministry of Labor and Social Security (STPS). The then General Director of Mines did not proceed with the provisional suspension of the works, arguing that the STPS information on the 10 previously mentioned mining concessions did not coincide with the registry data held by the General Directorate of Mines. Considering this and other possible irregularities, the Directors of Mines and Obligations were dismissed last June with the purpose of investigating and, where appropriate, establishing the corresponding responsibilities.

ON EXPLORATION

  • Monumental Minerals Corp., announced results of a recently satellite multispectral interpretation covering its Jemi Heavy Rare Earth Elements project in Coahuila. The interpretation highlighted discreet areas that may host eudialyte-bearing dykes, veins, and disseminations. Eudialyte is a Na, Ca, Fe/Mn, Zr silicate mineral that can contain up to 10% Rare Earth Elements, and 12% ZrO2. The Aster satellite spectral data also identified several areas prospective for Cu-Zn-Pb-Ag carbonate replacement deposits.
  • Silver Wolf Exploration Ltd., released 155 grab sample results collected during the ongoing surface sample program at its Ana Maria project, Durango, which has returned some high-grade values of Ag, Pb, and Zn.  From the 155 samples collected by Silver Wolf, 30 returned values >100 g/t Ag, 73 returned > 0.5% Pb, and 59 returned > 0.5% Zn with peaks of 1,536 g/t Ag, 34% Pb, and 19.4% Zn.  These results combined with the anomalies generated in the geophysical and remote sensing surveys will provide a basis for prioritizing drill targets.
  • Defiance Silver Corp., provided an update on the 4,750m maiden drill program at its Lucita project, within its Zacatecas Silver property. Drilling has encountered multiple intercepts over 199 g/t Ag and individual high-grade silver intervals. Drilling highlights include hole DDLU-22-10 with 0.20 g/t Au and 264 g/t Ag over 3.05m, including 0.19 g/t Au and 668 g/t Ag over 0.77m, plus 0.37 g/t Au and 166 g/t Ag over 4.01m, including 0.57 g/t Au and 220 g/t Ag over 22.72m, including 1.13 g/t Au and 416 g/t Ag over 1.22m, plus 0.08 g/t Au and 235 g/t Ag over 2.25m, including 0.19 g/t Au and 737 g/t Ag over 0.53m, plus 0.03 g/t Au and 189 g/t Ag over 0.75m, plus 0.04 g/t Au and 108 g/t Ag over 0.88m; and hole  DDLU-22-13 with 0.04 g/t Au and 147 g/t Ag over 1.57m, plus 0.04 g/t Au and 150 g/t Ag over 2m, including 0.2 g/t Au and 843 g/t Ag over 0.3m, plus 0.09 g/t Au and 109 g/t Ag over 1.15m. “The inaugural drill program at Lucita central (Palenque vein system) confirmed the presence of high-grade, Fresnillo-style, low to intermediate-sulfidation epithermal silver mineralization, consisting of mainly of pyrargyrite (high-level sulfosalt) and silver sulfides that potentially indicate the higher-level setting of a zoned epithermal system. Follow-up drilling is planned for later this year at the newly discovered zones of mineralization at Palenque and Tahures”.

ON MINING

  • Argonaut Gold Inc., reported Q2, 2022 production results from their Mexican mining operations. At El Castillo mine, Durango, Argonaut mined 1,471,000 tonnes of 0.30 g/t Au to produce 12,047 Oz Au and 10,407 Oz Ag (12,178 Gold Equivalent Ounces (GEOs)), and sold 11,463 Oz Au and 11,293 Oz Ag (11,603 GEOs) at a cash cost of  USD $1,513 per Oz Au sold. At San Agustin mine, Durango, the company mined 2,954,000 tonnes of 0.29 g/t Au to produce 18,033 Oz Au and 88,160 Oz Ag (19,135 GEOs), and sold 18,656 Oz Au and 93,420 Oz Ag (19,824 GEOs) at a cash cost of USD $1,009 per Oz Au sold. At La Colorada mine, Sonora, Argonaut mined 976,000 tonnes of 0.44 g/t Au to produce 12,950 Oz Au and 35,191 Oz Ag (13,390 GEOs), and sold 13,322 Oz Au and 38,194 Oz Ag (13,799 GEOs) at a cash cost of USD $1,003 per Oz Au sold.
  • Aura Minerals Inc., provided a production guidance for 2022 on its Aranzazu mine in Zacatecas where it expects to produce between 115-120K Oz AuEq at cash cost between USD $645-690 per Oz AuEq produced.
  • Avino Silver & Gold Mines Ltd., reported Q2, 2022 production and financial results from its Avino mine, Durango. The company mined 118,224 tonnes to produce 225.5K Oz Ag, 1,350 Oz Au, and 1.64M Lb Cu (649.6K Oz AgEq), and sold 594.7K Oz AgEq at cash and AISC of USD $8.39 and USD $15.95 respectively per Oz AgEq sold. Avino reported revenues of USD $9.4M; operating income of USD $3.9M; non-cash depreciation and depletion of USD $4.4M; net income of USD $2.3M; earnings before interest, taxes, depreciation and amortization (EBIDTA) of USD $4.1M; adjusted earnings of USD $2.5M, operating cash flow (before working capital changes of USD $2.5M; and free cash flow of USD $1.5M. Cash balance reported at June 30, 2022 of USD $12.8M and working capital of USD $14.3M.
  • Capstone Copper Corp., reported Q2, 2022 production results from its Cozamin mine, Zacatecas. The company produced 14.33M Lb Cu at a cash cost of USD $1.25 per Lb Cu produced.
  • Endeavour Silver Corp., reported Q2, 2022 production and financial results from their Guanacevi and Bolañitos mines in Durango and Guanajuato respectively. At Guanacevi, Durango, Endeavour processed 94,017 tonnes to produce 1.19M payable Oz Ag and 3,680 payable Oz Au at cash cost of USD $10.35 per Oz Ag, total  production cost of USD $12.90 per Oz Ag, direct operating cost per tonne of USD $170.75, and direct cost per tonne of USD $201.84 . At Bolañitos mine, Guanajuato, the company processed 107,344 tonnes to produce 155.7K payable Oz Ag and 5,609 payable Oz Au at cash cost of USD $8.01 per Oz Ag, total production cost of USD $24.66 per Oz Ag, direct operating cost per tonne of USD $99.25, and  direct cost per tonne of USD $101.05. Consolidated results summarize 201.4K tonnes processed to produce 1.36M payable Oz Ag and 9.3K payable Oz Au (2.1M Oz AgEq) at cash cost of USD $10.18 per Oz Ag, AISC of USD $19.56 per Oz Ag, total production cost of USD $14.26 per Oz Ag, direct operating cost per tonne of USD $132.63, and direct cost per tonne of USD $148.11. The company reported revenues of USD $30.8M from 602.9K Oz Ag sold and 9.8K Oz Au sold at realized prices of USD $22.72 and USD $1,840 per Oz Ag and Oz Au respectively. It also reported a net earnings (loss) of USD $11.9M, adjusted earnings (loss) of USD $4.3M), mine operating earnings of USD $4.5M, mine operating cash flow before taxes of USD $8.8M, operating cash flow before working capital changes of USD $3.6M, and working capital of USD $149.7M.
  • Fortuna Silver Mines Inc., reported Q2. 2022 from its San Jose mine, Oaxaca. The company mined 251.9K tonnes of 187 g/t Ag and 1.13 g/t Au, both with metallurgical recoveries of 91% to produce 1.38 M Oz Ag and 8.3K Oz Au. Fortuna sold 1.42M Oz Ag and 8.6K Oz Au at realized prices of USD $22.56 and USD $1,873 per Oz Ag and Au respectively at a production cash cost per tonne of USD $83.57, production cash cost per Oz Ag Eq of USD $11 and AISC per Oz AgEq of USD $15.41.
  • Gatos Silver Inc., reported Q2, 2022 production and financial results from its Cerro Los Gatos mine, Chihuahua. The company milled 211,350 tonnes of 374 g/t Ag, 0.38 g/t Au, 2.79% Pb, and 5.03% Zn with metallurgical recoveries of 90.4%, 48.9%, 90.5%, and 66.4% respectively to produce 2.3M Oz Ag, 1.27K Oz Au, 11.8M Lb Pb, and 15.6M Lb Zn. Gatos Silver reported unaudited sales of USD $57.2M, cost of sales of USD $27.8M, royalties of USD $1M, G & A expenses of USD 3.6M, other expenses of USD $0.7M, capital expenditures of USD $20.5M, and cash balance of USD $40M as of June 30, 2022.
  • GoGold Resources Inc., reported Q2, 2022 production and financial results from its Parral Tailings project, Chihuahua. The company produced 213.5K Oz Ag, 3,081 Oz Au, and 219.5K Lb Cu at a cash and AISC of USD $13.17 and USD $17.73 per Oz AgEq respectively. GoGold reported revenues of USD $10.4M from the sale of 512.7K Oz AgEq at a realized price of USD $20.26 per Oz AgEq. It also reported cost of sales including depreciation of USD $7.9M, operating income of USD $221K, net income of USD $1.1M, free cash before working capital changes of USD $3.7M, and cash of USD $73.8M.
  • Golden Minerals Company reported Q2, 2022 production and financial results from its Rodeo mine, Durango. Golden produced 3,004 payable Oz Au and 12,768 payable Oz Ag (3,158 payable Oz AuEq) and sold 3,219 Oz AuEq at a realized price of USD $1,865 per Oz Au and USD $22.49 per Oz Ag. The total cash cost net of Ag byproduct credits was USD $1,426 per Oz AuEq. Golden reported revenues of USD $5.9M, net operating margin of USD $1.3M, cash and cash equivalent balance as of June 30, 2022 of USD $9.5M, and a net loss of 2.8M or USD $0.02 per share.
  • Orla Mining ltd., reported production and financial results from its Camino Rojo mine, Zacatecas. The company produced 25,672 Oz Au and sold 25,431 Oz Au at an average price of USD $1,872 per Oz, and cash and AISC of USD $439 and USD $601 respectively. Orla reported revenues of USD $47.8M, cost of sales-operating cost of USD $10.8M, adjusted earnings of USD $11M, cash flow from operating activities before changes in non-cash working capital of USD $20.7M, free cash flow of USD $28.7M, cash and cash equivalents as at June 30, 2022 of USD $66.7M, and a net debt of USD $100.3M.
  • SilverCrest Metals Inc., reported Q2, 2022 production and financial results from its Las Chispas project, Sonora. The company milled 12,700 tonnes of low-grade from historic stockpiles. At the end of June, 2022 it produced its first precious metal pour consisting of 312Kg of doré with approximately 2,200 Oz Ag and 100 Oz Au. SilverCrest reported cash and cash equivalents of USD $118.6M remaining under a USD $120M project financing facility, a value-added taxes (IVA) receivable in Mexico of USD $26.3M, an inventory of USD $19.4M, and mineral property, plant and equipment of USD $200M.
  • Americas Gold and Silver Corporation reported Q2, 2022 production results from its Cosala mine in Sinaloa. It produced 128K Oz Ag, 3.9M Lb Pb, and 9.9M Lb Zn. Americas provided 2022 production guidance and expect to produce between 0.7-0.9M Oz Ag, 13-15M Lb Pb, and 36-40M Lb Zn.

ON FINANCING

  • Advance Lithium Corp., announced a non-brokered private placement to raise gross proceeds of up to $200K. Gross proceeds will be used to advance its Sarape project in Sonora and for general corporate purposes.
  • Fabled Silver Gold Corp., informed about an extension of its non-brokered private placement by 30 days starting this August 8, 2022 (Santa Maria project, Chihuahua).

ON RESOURCES AND DEVELOPMENT

  • GR Silver Mining Ltd., reported a new Ag discovery SE of its San Marcial Resource Area on its wholly-owned Plomosas project, Sinaloa. Hole SMS22-10 encountered 308 g/t Ag, 0.02 g/t Au, 0.1% Pb, and 0.3% Zn over 101.6m, including 7,139 g/t Ag, 0.04 g/t Au, 1,6% Pb, and 1.3% Zn over 0.8m, plus 3,065 g/t Ag, 0.1% Pb, and 0.2% Zn over 0.3m, plus 1,774 g/t Ag, 0.01 g/t Au, 0.1% Zn over 0.20m, plus 1,508 g/t Ag, 0.1% Zn over 0.2m, plus 1,285 g/t Ag, 0.04 g/t Au, 0.1% Pb, and 0.5% Zn over 0.3m, plus 1,004 g/t Ag, 0.06 g/t Au, 0.2% Pb, and 0.3% Zn over 4.1m, plus 1,579 g/t Ag, 0.06 g/t Au, and 0.1% Zn over 0.4m, plus 1,017 g/t Ag, 0.15 g/t Au, 0.4% Pb, and 0.7% Zn over 0.3m, plus 414 g/t Ag, 0.05 g/t Au, 0.4% Pb, and 0.9% Zn over 16.2m, including 1,405 g/t Ag, 0.2 g/t Au, 0.8% Pb, and 1.9% Zn over 1.3m. “The hole was drilled 250 m to the SE of the San Marcial Resource Area, where the Company has been exploring the extension of the target contact between upper and lower volcanic units, which typically hosts the San Marcial Breccia Ag mineralization, together with strong ground magnetic anomalies delineated in 2021. This new, wide, high-grade silver discovery coincides with an inflexion in the NW-SE trending contact where it intersects with two key NE-SW trending faults. This defines a highly prospective target for continued drilling, both along strike and down dip”.
  • Pan American Silver Corp., reported Mineral Reserves and Mineral Resources as at June 30, 2022 for their Mexican properties. At La Colorada, Zacatecas the company reported proven reserves of 3.8M tonnes with average grades of 340 g/t Ag and 0.23 g/t Au for a total of 41.5M Oz Ag and 27.5K Oz Au contained, and probable reserves of 6.2M tonnes with grades of 303 g/t Ag and 0.18 g/t Au for a total of 59.9M Oz Ag and 36K Oz Au contained. The company also reported measured resources of 1.9M tonnes with grades of 216 g/t Ag and 0.14 g/t Au for a total of 13M Oz Ag and 8.2K Oz Au, indicated resources of 3.4M tonnes with grades of 191 g/t Ag and 0.17 g/t Au for a total of 20.8M Oz Ag and 18K Oz Au contained, and inferred resources of 14.9M tonnes with grades of 195 g/t Ag and 0.2 g/t Au for a total of 93.9M Oz Ag and 98.4K Oz Au contained. At Dolores, Chihuahua, probable reserves reported are 4.1M tonnes of 18 g/t Ag and 0.6 g/t Au for a total of 2.4M Oz Ag and 77.7K Oz Au contained, while inferred resources are 2.5M tonnes with grades of 29 g/t Ag and 0.92 g/t Au for  a total of 2.4M Oz Ag and 74.4K Oz Au. At La Bolsa, Sonora, Pan American reported inferred resources of 13.7M tonnes with grades of 8 g/t Ag and 0.51 g/t Au for a total of 3.3M Oz Ag and 224.8K Oz Au contained. Reported mineral resources do not include amounts identified as mineral reserves. Mineral resources that are not mineral reserves have no demonstrated economic viability.
  • Vizsla Silver Corp. released results from 26 new drill holes targeting the Tajitos-Copala resource area at its 100%-owned flagship Panuco project in Sinaloa. Drilling highlights include hole CS-22-191 with 133 g/t Ag and 0.48 g/t Au (158 g/t AgEq) over a true width (TW) of 1.39m, plus 706 g/t Ag and 4.93 g/t Au (1,011 g/t AgEq) over a TW of 12.52m, including 3,880 g/t Ag and 27.7 g/t Au (5,602 g/t AgEq) over a TW of 1.26m, plus 1,245 g/t Ag and 8.24 g/t Au (1,751 g/t AgEq) over a TW of 1.26m, plus 1,425 g/t Ag and 10.65 g/t Au (2,092 g/t AgEq) over a TW of 0.42m; hole CS-22-173 with 663 g/t Ag and 2.90 g/t Au (826 g/t AgEq) over a TW of 14.46m, including 1,375 g/t Ag and 7.19 g/t Au (1,796 g/t AgEq) over a TW of 0.78m, including 1,501 g/t Ag and 5.49 g/t Au (1,791 g/t AgEq) over a TW of 0.93m, plus 1,655 g/t Ag and 8.05 g/t Au (2,118 g/t AgEq) over a TW of 0.78m, plus 1,505 g/t Ag and 5.93 g/t Au (1,826 g/t AgEq) over a TW of 1.37m; hole CS-22-159 with 285 g/t Ag and 2.12 g/t Au (418 g/t AgEq) over a TW of 10.50m, including 493 g/t Ag and 18.3 g/t Au (1,775 g/t AgEq) over a TW of 0.56m, plus 1,025 g/t Ag and 4.61 g/t Au (1,285 g/t AgEq) over a TW of 0.71m; and hole CS-22-181 with 165 g/t Ag and 0.52 g/t Au (191 g/t AgEq) over a TW of 1.70m, plus 832 g/t Ag and 3.85 g/t Au (1,051 g/t AgEq) over a TW of 3.44m, including 1,725 g/t Ag and 11 g/t Au (2,396 g/t AgEq) over a TW of 0.68, plus 1,501 g/t Ag and 4.98 g/t Au (1,754 g/t AgEq) over a TW of 0.81m.

ON DEALS AND CORPORATE ISSUES

  • Prismo Metals Inc., announced that its common shares are now eligible for electronic clearing and settlement in the United States through the Depository Trust Company (“DTC”). It will simplify the process of trading and enhance liquidity of Prismo shares in the United States. The Company’s shares recently began trading on the OTCQB® Venture Market (“OTCQB”) under the ticker symbol PMOMF (Palos Verdes project, Sinaloa).
  • Consolidated Zinc Limited made several management changes. The company announced the retirement and replacement of its non-executive Chairman, the appointment of a new member of its Board of Directors, and the appointment of its Exploration Manager. All Board changes are effective September 1, 2022 (Plomosas mine, Chihuahua).
  • Advance Lithium Corp., sold its royalty on three claims in Kenya to Orogen Royalties Inc., for USD $120K and the transfer of the 100% ownership of the Sarape property, Sonora. Orogen will retain a 1.5% royalty on the Sarape property.
  • Kootenay Silver Inc., amended the schedule on the final payment of its option agreement for 100% of the Columba high-grade silver project, Chihuahua. The amended agreement splits the final November 2022 payment into a series of payments due in August, November, December 2022 and January, April, and May of 2023. Payments range from USD $215K (August 2022 and May 2023) to USD $480K (November 2022) and USD $430K (December 2022, January, and April 2023).

ON SOCIAL RESPONSIBILITY

  • First Majestic Silver Corp., released its 2021 Sustainability report summarizing the Company´s Environmental, Social and Governance (ESG) performance. CEO of the company stated that their effort in 2021 demonstrated their commitment to sustainability and to improving lives and communities in our host regions while increasing shareholder value, as well as driving positive changes for society and delivering long-term benefits for all First majestic shareholders.
  •  Industrias Peñoles S.A.B. de C.V., and Fresnillo plc promote entrepreneurs providing tools to micro and small entrepreneurs from the communities neighboring their operations through a training and advisory program for the strengthening and creation of proudly local and Mexican companies. Both Peñoles and Fresnillo plc have given nearly 249 workshops for entrepreneurs, with the support of the social organization ProEmpleo. In parallel, the companies and the organization work on the abilities and skills of the participants who seek the continuity of their projects and reinforce them with actions to make them competitive in their local environment. To date, more than 3,800 people have benefited and 203 new companies have been created, which in turn generated 534 direct jobs; 74% of the total number of companies created continue to operate.

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

On the picture above, a banded calcite vein with Manganese Oxides from an intermediate sulphidation epithermal vein system in Chihuahua, Mexico.  Photo by Miguel A Heredia.