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

By Jorge Cirett

During the 15th week of the year (April 12th to April 18th, 2021), as a sign of the strong current activity, at least 43 press releases were announced by companies working in Mexico. To note, ten companies posted exploration advances on their properties, seven presented mining related news, six posted on financing or share options (including C$2.35 M, $3 M, C$14.1 M, C$5.6 M and $25 M), eight more on project development or resource definition and three posted on corporate issues. ON MEXICO ISSUES, Francisco Quiroga, the ex-secretary of Mining has been appointed ambassador in Germany. The Sonora Mining Cluster has two new female counselors. Napoleon Gomez Urrutia and its SNTMMS Union have been condemned to pay US$54 M to some of its affiliates. A new Coordination has been created in the Economy Secretariat to promote mining. The CTM Union opposes the outsourcing reform that would decrease the participation of workers in the profits of mining companies. ON EXPLORATION, In Sonora, Silver Spruce signed a LOI on the Diamante 1 and Diamante 2 projects; Ridgestone announced its exploration plan for the Rebeico property; Tocvan Ventures commenced phase II RC drilling at Pilar; Carlyle Commodities released good drilling results from Cecilia; Orogen informed its Lola and Sarape properties are being drilled by partners; Canuc Resources released information on the first drill hole on the present campaign at its San Javier Au-Ag project. In Chihuahua, Monarca Minerals signed a surface access agreement for its San Jose project; Kootenay Silver updated on drilling of its Columba project. In Sinaloa, Viszla Silver released drilling results from the Napoleon zone at its Panuco project. In San Luis Potosi and Zacatecas Advance Gold released results from auger sampling at several salars. ON MINING, Magna Gold, Fortuna Silver Mines, Sierra Metals, Excellon and First Majestic Silver released Q1 2021 production results. Consolidated Zinc announced the commencement of concentrate production from the recently refurbished plant at Plomosas in Chihuahua. ON FINANCING, Colibri Resources, Sonoro Gold, Santacruz Silver Mining, Heliostar Metals and Candelaria Mining released news on financing (with C$2.35 M, $3 M; $14.1 M, C$4 M and up to $25 M respectively). Defiance Silver completed its uplisting to the OTCQX Best Market ON RESOURCES AND DEVELOPMENT, Equinox Gold commenced the development of the Bermejal underground mine in Guerrero. Xali Gold submitted permit applications for the Mexico Mines Tailings project in El Oro, Estado de Mexico. Gatos Silver presented good drilling results from both extensions of the Cerro Los Gatos deposit in Chihuahua. Fabled Silver Gold released results from drilling at Santa Maria, Chihuahua. SilverCrest Metals released high-grade drilling results from several veins at Las Chispas, Sonora. Almaden Minerals is conducting an induced polarization survey at the Ixtaca deposit in Puebla. GoGold Resources released drilling results from El Favor zone at its Los Ricos North project in Jalisco. Golden Tag Resources released results from drilling at its San Diego property in Durango.   ON DEALS AND CORPORATE ISSUES, VanGold Mining closed with Endeavour Silver the acquisition of the El Cubo mine and mill complex in Guanajuato. Silver Spruce Resources signed a LOI with Colibri Resource on the Diamante 1 and Diamante 2 properties in Sonora. Empress Royalty executed a $5 M Silver Stream agreement with Telson Mining. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • Francisco Quiroga Fernández, Mining ex-subsecretary was appointed ambassador of Mexico in Germany. Rare in the present administration, he’s a competent professional with experience in the private industry, and more than capable to develop and strengthen political and economic ties between the two countries.  
  • The Sonora Mining Cluster named Silvia Álvarez and Maria López Rosas as new counselors to the organism.
  • The Sindicato Nacional de Trabajadores Mineros, Metalúrgicos y Similares de La República Mexicana (a strong Mining Union) and its leader Napoleón Gómez Urrutia have lost a legal law suit and have been condemned by the Junta Federal de Conciliación y Arbitraje to pay US$54 M. The Union received these funds from the sale of the Cananea mine 15 years ago, and was supposed to deliver that money to the at the time workers of the company in charge. The union failed to deliver the funds to the miners.
  • The Mexican president ordered by decree the creation of the Coordination of Extractive Activities on the Economy Secretariat. Said unit is to coordinate the mining activities of the State and actions to promote national and foreign investments in mining, among other activities.
  • The CTM Union (Confederación de Trabajadores de México) opposes the reform on outsourcing that would lower the amount the miners receive as participation on the company’s annual profits.  

ON EXPLORATION

  • Silver Spruce Resources Inc. signed a letter of intention (LOI) on two properties in Sonora, Diamante 1 and Diamante 2 covering 1,057 hectares. Historical assays from samples in the Diamante 1 and Diamante 2 properties, which display epithermal intermediate sulfidation mineralization have returned up to 39.8 gpt Au, 3,460 gpt Ag, 7.3% Pb, 5.6% Zn. Diamante 1 has already six main targets, including the La Prieta-El Aguaje vein system, which runs for 2,000 m averaging 1 m in width. At Diamante 2 The Calton area displays two vein 900 m and 1,100 m in length, ranging from 0.30 m to 1.70 m in width. The El Cumbro-Mezquite Raizudo veins follow a structural trend 900 m long, displaying an average width of 1 meter.
  • Advance Gold Corp. released results from auger drilling sampling at all the salars it recently acquired in Zacatecas and San Luis Potosí. The 0.5 m to 1 m of depth samples returned highlighted results of up to 650 ppm boron (B), 1.91% Potassium (K) and 620 ppm Lithium (Li). The average grade of the samples was 247 ppm B, 1.17% K and 215 ppm Li.
  • Monarca Minerals Inc. executed and ratified by a Notary Public the surface access agreement with both the Ejido and Colonia on its San Jose silver project in Chihuahua. The company is now to apply for the environmental permit that will allow it to conduct its planned 5,000 m drilling campaign.
  • Ridgestone Mining Inc. announced an exploration plan for its 3,459 hectares Rebeico project in Sonora. The current phase will comprise geologic mapping, sampling and prospecting, with focus on the New Year zone, the Santa Elena outcrop and El Cobre mine.
  • Tocvan Ventures Corp. announced the start of phase II of its drilling program at the Pilar project in Sonora. The two-stage 4,000 m reverse circulation (RC) drill program will focus first on the “definition and expansion of the Main Zone, which during Phase I returned 94.6-meters at 1.6 g/t Au including 9.2m at 10.8 g/t Au and 38 g/t Ag”, and then to test the new targets across the property.
  • Kootenay Silver Inc. reported it has completed 12 core drill holes totalling 1,800 m as part of its 5,000 m campaign at its Columba project in Chihuahua. Kootenay has tested the F vein and is now testing an area east of the J-Z zone.
  • Carlyle Commodities Corp. released the first batch of drill results from the Cecilia project in Sonora. The program consisted of seven holes, of which results have been received for five. The best intercept was 24.2 m @ 1.51 gpt Au. Other core-length highlighted intervals comprise 1.30 m @ 0.69 gpt Au; 5.95 m @ 0.20 gpt Au, 3.10 m @ 0.52 gpt Au; 9.45 m @ 0.23 gpt Au; 1.00 m @ 0.55 gpt Au; 3.45 m @ 0.35 gpt Au; 4.30 m @ 0.29 gpt Au; 6.10 m @ 0.43 gpt Au; 3.00 m @ 0.87 gpt Au. “The first drill program from Carlyle and Riverside was focused on targeting the hydrothermal system identified at two principal elevations: 2,200 m and 1,900 m, respectively corresponding to the San Jose Target and the North Breccia Target…… to test the continuity of the mineralized structures at shallow depth”.  
  • Orogen Royalties Inc. announced the commencement of drilling programs on two of its properties in Sonora. At La Lola, partner Heliostar Metals Ltd. has initiated a 1,500 m drilling program. At the 57.8 square km Sarape project, Orogen and partner Hochschild PLC commenced a planned 3,000 m program. Eight holes will be drilled on 2.5 km of the Sarape vein. “In 2019, nine holes drilled within a 380-metre-long segment of the vein defined a structural dilation zone at 100-350 metres depth (Figure 2). In this zone the vein thickens to 23.6 metres in width..…. A deeper horizon will also be drilled to identify if the grade of the vein improves with depth”.
  • Canuc Resources Corp. informed on drilling advance at its San Javier Ag-Au project in Sonora. The first hole of a planned 6,000 m program was ended at 89.5 m in a fault zone. It intersected brecciated sedimentary rocks with stockwork veining and three intervals of massive magnetite breccia. “The 20-hole program is designed to test at least 4 magnetic features that underlie areas where a 2020 mapping and rock sampling program identified silver, gold and copper mineralization. At surface, the host rocks for three of these features are found to be magnetite breccia”. The program is focused on magnetic anomalies identified by a previous survey.
  • Viszla Silver Corp. released drilling results from step out drilling at the southern extension of the Napoleon prospect at its Panuco project in Sinaloa. The Napoleon vein has been mapped for more than 2.5 km and has four rigs drilling at the time. Highlighted true width intercepts comprise 4.46 m @ 890 gpt Ag, 19.99 gpt Au, 0.7% Pb, 1.8% Zn (including 0.92 m @ 3,804 gpt Ag, 91.91 gpt Au, 1.5% Pb, 3.5% Zn); 1.92 m @ 105.9 gpt Ag, 7.28 gpt Au, 0.7% Pb, 2.9% Zn (including 1.45 m @ 131 gpt Ag, 9.39 gpt Au, 0.8% Pb, 3.1% Zn)

ON MINING

  • Fortuna Silver Mines Inc. released production results for the first quarter 2021, including figures from its Mexican operations. At San José, in Oaxaca, 259.8 K tonnes @ 217 gpt Ag, 1.36 gpt Au were milled, recovering 90.8% Ag, 90.5% Au to produce 1.65 M Oz Ag, 10,301 Oz Au.
  • Consolidated Zinc Ltd. announced the 2021 zinc concentrate “benchmark treatment charge (TC) has been agreed between the major miners and smelters at US$159.00/t of concentrate, a reduction of 47% from last year’s benchmark treatment charge of US$299.75/t”. Treatment charges in 2020 represented 33% of total operating costs (before by-product credits) being the single largest operating cost (Plomosas, Chihuahua).
  • Magna Gold Corp. informed production levels have benefited from the accelerated stripping program, resulting in month to month growth in gold production, with 3,085 ounces in January, 2,670 ounces in February and 4,030 ounces in March. Magna anticipates the mine will return to full scale commercial production by June of this year, with 2021 guidance in the range of 55,000 to 65,000 Oz Au. During the Q1 2021, 619 K tonnes were mined @ 0.34 gpt Au, with 5.2 M tonnes of waste moved (8.40 strip ratio) to produce 9,785 Oz Au, 8.1 K Oz Ag.
  • Sierra Metals Inc. reported first quarter 2021 production reports, including figures from its Mexican properties. At Bolivar, in Chihuahua, 371.6 K tonnes were processed @ 0.77% Cu, 19.7 gpt Ag, 0.19 gpt Au, recovering 82.8% Cu, 83.6% Ag, 69.6% Au, to produce 5.2 M Lb Cu, 197 K Oz Ag, 1,591 Oz Au (7.3 M Lb CuEq). At Cusi, also in Chihuahua, 76.6 K tonnes were processed @ 15.2 gpt Ag, 0.16 gpt Au, 0.22% Pb, recovering 80.9% Ag, 39.6% Au, 81.5% Pb, to produce 313 K Oz Ag, 155 Oz Au, 298 K Lb Pb (334 K AgEq Oz Ag).
  • Consolidated Zinc Ltd. announced the first concentrate from the newly refurbished plant at its Plomosas property in Chihuahua has been produced.
  • Excellon Resources Inc. released Q1 2021 production results from the Platosa mine in Durango. At the site 21,212 tonnes were mined, 21,764 tonnes were milled @ 524 gpt Ag, 5.35% Pb, 6.73% Zn, recovering 89.7% Ag, 81.8% Pb, 74.7% Zn to produce 328.7 K Oz Ag, 2.1 M Lb Pb, 2.4 M Lb Zn, or 516.7 K Oz AgEq.
  • First Majestic Silver Corp. produced during the Q1 2021 2.9 M Oz Ag, 23,873 Oz Au, or 4.5 M Oz AgEq from its three mines in Mexico: San Dimas in Durango, Santa Elena in Sonora and La Encantada in Coahuila. The company completed 39,552 m in exploration drilling during the quarter, with 10 rigs at San Dimas, seven rigs at Santa Elena and two rigs at La Encantada.

ON FINANCING

  • Colibri Resource Corp. has closed a non-brokered private placement for CAD$2.35 M in gross profits. (Evelyn, Sonora).
  • Sonoro Gold Corp. has increased its non-brokered private placement to raise an aggregate of $3 M thorough the exercise of over allotment options (Cerro Caliche, Sonora).
  • Santacruz Silver Mining Ltd. closed its non-brokered private placement offering, for gross proceeds of CDN$14.1 M (Carrizales, Hidalgo).
  • Defiance Silver Corp. successfully completed an uplisting to the OTCQX Best Market (San Acacio, Zacatecas).
  • Heliostar Metals Ltd. is increasing the size of its C$4 M marketed private placement to raise up to C$5.6 M (La Lola, Sonora).
  • Candelaria Mining Corp. intends to raise up to $25 M to fund exploration activities at the Caballo Blanco district in Veracruz, and the Pinos project in Zacatecas.

ON RESOURCES AND DEVELOPMENT

  • Equinox Gold Corp. is commencing development of the Bermejal underground mine at its Los Filos project in Guerrero.
  • Xali Gold Corp. submitted permit applications for the Mexico Mines Tailings project in El Oro, Estado de México. The permits are to allow both the transportation and re-processing of the tailings at a new 25 hectares plant site located 5 Km from the current location. Xali’s is to pay the El Oro municipality an 8%  net profit interest (NPI). The project has an inferred resource of 1.27 M Tonnes grading 2.94 Au g/t, 75.12 Ag g/t, containing 119,900 Oz Au and 3.06 M Oz Ag.
  • Gatos Silver Inc. reported drilling results of delineation drilling at Cerro Los Gatos in Chihuahua. The program has demonstrated continuity in both the southeast and northwest projections of the current reserve. Highlighted true width drill results include: 9.5 m @ 0.11 gpt Au, 51 gpt Ag, 2.1% Pb, 3.1% Zn; 3.4 m @ 0.12 gpt Au, 122 gpt Ag, 5.0% Pb, 9.8% Zn, 0.2% Cu; 5.4 m @ 0.25 gpt Au, 121 gpt Ag, 1.5% Pb, 2.9% Zn; 7.2 m @ 0.14 gpt Au, 106 gpt Ag, 3.5% Pb, 3.4% Zn, 0.1% Cu; 2.6 m @ 0.21 gpt Au, 327 gpt Ag, 9.2% Pb, 3.8% Zn, 0.14% Cu; 12.0 m @ 0.15 gpt Au, 44 gpt Ag, 1.1% Pb, 4.0% Zn, 0.15% Cu; 2.8 m @ 0.20 gpt Au, 111 gpt Ag, 1.6% Pb, 3.9% Zn, 1.3% Cu; 1.9 m @ 0.12 gpt Au, 132 gpt Ag, 3.2% Pb, 9.9% Zn, 0.4% Cu; 7.2 m @ 0.06 gpt Au, 25 gpt Ag, 1.0% Pb, 10.3% Zn, 0.2% Cu; 5.7 m @ 0.17 gpt Au, 152 gpt Ag, 3.0% Pb, 4.4% Zn, 0.30% Cu.
  • Fabled Silver Gold Corp. released drilling results from its Santa Maria property in Chihuahua. The last sample on the last drill hole returned 75.9 gpt Ag, with 6.4 m of similar material awaiting results. Fabled is making a reinterpretation of previous work and testing the new targets identified. The ongoing 8,000 m drill program has been increased to at least 9,200 m. “This program will be focused underground to delineate the Santa Maria Central Structure with multi underground drill stations being prepared”.
  • SilverCrest Metals Inc. released additional in-fill and expansion drill results s from the Babi Vista vein splay, Babi Vista vein, Granaditas 1 vein, Granaditas 2 vein, and adjacent hangingwall and footwall veins in the Babicanora Area of its Las Chispas Project in Sonora. The results are from 78 holes totaling 29,308 m completed since the last news release for these veins, in areas with mineral resources or in close proximity. Average results for the Babi Vista vein splay comprise 0.91 true width @ 16.12 gpt Au, 1,351 gpt Ag, with individual intercepts of up to 1.04 m @ 185.65 gpt Au, 13,959 gpt Ag. Babi Vista Footwall and Granaditas 1 average 1.04 m @ 12.89 gpt Au, 1,884 gpt Ag, with the highest intercept running 0.40 m @ 114.0 gpt Au, 78,872 gpt Ag (7.89% Ag). The Babi Vista and Granaditas 2 vein average 0.67 m @ 4.56 gpt Au, 414 gpt Ag, while the Babi Vista Hangingwall averages 0.43 m @ 2.55 gpt Au, 249 gpt Ag.
  • Almaden Minerals Ltd. is conducting an induced polarization geophysical survey at the Ixtaca deposit in Puebla. “The work is designed to help define drill targets beneath the area of hydrothermal alteration called the Southeast Alteration (SE) zone and at depth beneath the Ixtaca deposit (“Ixtaca Deeps”). It is hoped that this geophysical survey, along with past survey results, will identify potential zones of veining like those in the Ixtaca deposit. The discovery drill hole in the original Ixtaca deposit area was planned in part based on high resistivity and chargeability results obtained in an earlier IP geophysical survey”.
  • GoGold Resources Inc. released results from six diamond drill holes from El Favor area at its Los Ricos North project in Jalisco. Highlighted core-length intervals comprise 69.3 m @ 108 gpt Ag, 0.49 gpt Au (including 15.3 m @ 392 gpt Ag, 1.76 gpt Au); 9.6 m @ 112 gpt Ag, 0.39 gpt Au; 59.0 m @ 119 gpt Ag, 0.32 gpt Au (including 5.0 m @ 361 gpt Ag, 0.90 gpt Au); 2.8 m @ 110 gpt Ag, 0.16 gpt Au; 16.1 m @ 97 gpt Ag, 0.21 gpt Au; 12.0 m @ 86 gpt Ag, 0.09 gpt Au; 3.2 m @ 204 gpt Ag, 0.15 gpt Au; 7.2 m @ 135 gpt Ag, 0.76 gpt Au; 23.3 m @ 92 gpt Ag, 0.22 gpt Au; 12.9 m @ 254 gpt Ag, 0.81 gpt Au (including 8.2 m @ 392 gpt Ag, 1.25 gpt Au).
  • Golden Tag Resources Ltd. released results from the first three holes of a 4,500 m campaign at its San Diego project in Durango. A hole in the Fernandez zone returned 50.17 m @ 105 gpt AgEq; Another hole intersected 127.3 m of skarn/Fernandez style mineralization, intersecting 35.46 m @ 0.06 gpt Au, 30 gpt Ag, 0.14% Pb, 0.24% Zn, 0.01% Cu (52 gpt AgEq) and 91.84 m @ 0.07 gpt Au, 15 gpt Ag, 0.31% Pb, 0.34% Zn, 0.01% Cu (49 gpt AgEq). Other holes intercepted 1.11 m @ 0.90 gpt Au, 142 gpt Ag, 0.13% Pb, 0.21% Zn, 0.02% Cu; 3.25 m @ 0.02 gpt Au, 237 gpt Ag, 0.41% Pb, 0.82% Zn, 0.08% Cu; 1.10 m @ 0.28 gpt Au, 195 gpt Ag, 1.70% Pb, 1.92% Zn, 0.07% Cu; 2.69 m @ 0.05 gpt Au, 355 gpt Ag, 0.30 % Pb, 0.41% Zn, 0.02% Cu; 8.41 m @ 0.02 gpt Au, 24 gpt Ag, 0.61% Pb, 0.49% Zn, 0.06% Cu.

ON DEALS AND CORPORATE ISSUES

  • VanGold Mining Corp. closed the acquisition of El Cubo mine and mill complex in Guanajuato with Endeavour Silver Corp..  The deal involved the payment of US$7 M in cash plus VAT and the delivery of 21.33 M shares of VanGold and a promissory note for $2.5 M a year from closing. El Cubo has 508 K tonnes grading 194 gpt Ag, 2.44 gpt Au containing 3.17 M Oz Ag, 39,860 Oz Au as indicated resources and 1.45 M tonnes @ 214 gpt Ag, 2.78 gpt Au containing 10 M Oz Ag, 129,900 Oz Au as inferred resources.
  • Silver Spruce Resources Inc. signed a letter of intention (LOI) with Colibri Resource Corp. to acquire up to 50% interest in four concessions in Sonora, comprising two properties, Diamante 1 and Diamante 2 covering 1,057 hectares. The projects are separated by 700 meters, and in close proximity to other Colibri properties. The initial cash payment by Silver Spruce is to be of $75 K (Note.- The details of the deal are lengthy and involve a third party, please take a look to the appropriate press release if interested in it).
  • Empress Royalty Corp. executed the US$5 M silver stream agreement on the Telson Mining Corp. owned Tahuehueto project in Durango. “Empress has now executed the US$5M silver stream agreement on production from Telson’s Tahuehueto project in Mexico. The US$5M Stream is on 100% of the payable silver production from Tahuehueto for the first 1,250,000 payable ounces; thereafter, the percentage will stepdown to 20% of the payable silver production to a maximum of 10 years from first production after which the Stream terminates”.

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 image below:  Disseminated and vein constrained sulfides in a porphyritic intrusive rock in split diamond core from Cerro San Pedro in San Luis Potosi. Picture by Jorge Cirett.

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

By Jorge Cirett

During the 13th week of the year (March 29th to April 4th, 2021), at least 38 press releases were announced by companies working in Mexico. To note, five companies posted exploration advances on their properties, three presented mining related news, six posted on financing or share options (including C$2.2 M, C$2 M, C$10.8 M and C$82.5 M), ten more on project development or resource definition and three posted on corporate issues. ON MEXICO ISSUES, listed mining companies in Mexico paid US$1.29 B in taxes during 2020. Americas Silver and the Mexican government are in talks to solve the company’s union issues after the president of Mexico threatened with concession cancellation. Fortuna Silver denied environmental damage by its mining unit in Oaxaca. ON EXPLORATION, In Sonora, Heliostar Metals released drilling results from La Lola. In Sinaloa, Vizsla Silver released drilling results from Panuco; Brigadier Gold continues drilling at Picachos. In Durango, Silver Wolf released grab sample results from its Ana Maria project; Commander Resources reported results from a soil survey at the Pedro project.  ON MINING, McEwen Mining negotiated the end of an illegal blockade at El Gallo in Sinaloa. Prime Mining reported financial results for its Q3, 2021. Mag Silver released financial results for 2020. ON FINANCING, Colibri Resource, Sonoro Gold, Telson Mining and Equinox Gold released news on financing (C$2.2 M, C$2 M; $10.8 M and C$82.5 M respectively. Torex Gold announced the early repayment of $40 M. Reyna Silver is to issue $699.3 K in shares to consultors and advisors. ON RESOURCES AND DEVELOPMENT, Fortuna Silver released results from step out drilling at its San José mine in Oaxaca. Argonaut Gold released consolidated mineral resources estimates of more than 11.5 M Oz Au, 174.9 M Oz Ag on its properties. SilverCrest Metals updated on construction and exploration activities. Southern Silver reported high-grade drill intercepts at Cerro Las Minitas, Durango. Torex Gold presented a resource estimate of 5 M Oz Au for Los Filos in Guerrero. Ridgestone Mining updated on work at Guadalupe y Calvo (Chihuahua) and Rebeico (Sonora). Minera Alamos selected mining contractor for its Santana project in Sonora. GoGold Resources released results from drilling at Los Ricos North in Jalisco. First Majestic updated mineral resources for its mines and projects, for 340 M Oz Ag, 3.2 M Oz Au. Fabled Silver informed on drilling at Santa Maria, Chihuahua.  ON DEALS AND CORPORATE ISSUES, GR Silver Mining completed the acquisition of Marlin Gold Mining and its land holdings in Sinaloa. Silver Bull informed it has won a definitive decision on a lawsuit related to an illegal blockade at its Sierra Mojada project in Coahuila. Argonaut Gold announced the cancellation of the agreement to sell the Ana Paula project in Guerrero. ON SOCIAL RESPONSIBILITY, Fresnillo PLC informed on cultural activities aimed at helping local communities and improving the environment.

ON MEXICO ISSUES

  • Listed mining companies in Mexico paid US$1.13 B ($1,1293 M in Mexican notation) in taxes on profits, or 9.2% on total earnings, in 2020. This amount is 44.6% higher year on year, influenced by the raise in precious metals. All companies in mining paid US$9.9 B (US$9,888 million in Mexican notation) in 2020 and provided work to 9,600 suppliers.  
  • Americas Gold and Silver director and high-level government executives met to try to find a solution to the union conflict affecting the company at its Cosalá operations in Sinaloa. Last week the president of Mexico threatened with legal action to invalidate the company’s mining concession (there is no legal basis to revoke the concession).
  • Minera Cuzcatlán (Fortuna Silver) informed there is no environmental damage produced by a spill of tailings during a storm in 2018 at its San José mine in Oaxaca.

ON EXPLORATION

  • Heliostar Metals Ltd. released results from the first two holes ever drilled at the 6,360 hectare La Lola project in Sonora. The company is testing the main La Barra quartz-calcite-fluorite vein, which is up to 40 meters in width and runs for 5 kilometers and shows textures typical of shallow low sulfidation epithermal systems. A massive to crystalline quartz-calcite-fluorite subparallel vein to La Barra vein returned a core length interval of 2.5 m @ 0.01 gpt Au, 92 gpt Ag.
  • Silver Wolf Exploration Ltd. released results from surface grab samples from its 2,549 ha Ana Maria project in Durango. Initial work includes ASTER image analysis followed by a drone Lidar and hyperspectral data acquisition and analysis. Results from the 22 grab samples include up to 0.96 gpt Au, 12 gpt Ag, 3,770 ppm Cu, 1,440 ppm Pb, 278 ppm Zn, 50% Fe, 4.5% Ba, 2,450 ppm W. CRD mineralization is the target in a sedimentary package affected by an intrusive igneous stock.
  • Commander Resources Ltd. reported results from a soil survey program at its 1,750 ha Pedro project in Durango. The epithermal gold target is 4 km long by 1 km in width, as defined by gold and arsenic in soils, rocks and IP geophysics. “Outcrop exposure comprises prominent hematite-stained silica-rich ridges of angular chalcedony fragments and silicified sedimentary rocks within an angular course breccia. The mineralization extends beneath post-mineral volcanic rocks, colluvium … and alluvium”.
  • Vizsla Silver Corp. released results from 16 holes on the Tajitos zone of the Panuco project in Sinaloa. These holes expand the length of Tajitos to over 525 m, while nine other completed holes are awaiting results. Highlighted true width intervals comprise 2.5 m @ 1,586 gpt Ag, 7.72 gpt Au; 4.48 m 351 gpt Ag, 4.52 gpt Au; 7.94 m @ 387 gpt Ag, 2.25 gpt Au (including 1.44 m @ 1,365 gpt Ag, 8.35 gpt Au).
  • Brigadier Gold Ltd. continues drilling at its Picachos property in Sinaloa. To date 4,538 m of the planned 5,000 m on phase-1 diamond drilling program has been completed in 43 holes that mainly targeted the more than 7 km long Colcomeca vein system. “Several stages of mineralization are apparent from inspection of the drill core: (i) pervasive silicification with disseminated sulfide that is oxidized to hematite, (ii) crustiform quartz veining with sulfides, and (iii) cockade breccias in the central part of the structure. These breccias consist of angular rock fragments that are altered to a soft black mica on fragment margins”.

ON MINING

  • McEwen Mining Inc. informed activities at El Gallo project in Sinaloa have been restored after the illegal blockade. A new 10-year agreement was reached providing additional support to the communities and greater long-term certainty for El Gallo operation.
  • Prime Mining Corp. reported its operating and financial results for third quarter of fiscal year 2021, ended on January 2021. In January Prime paid Vista Gold Corp. US$1.1 M in accordance with terms on the Los Reyes project (Sinaloa) agreement; a final payment of $1 M is due in July 2021. Before the end of the quarter 1,053 m of drilling were completed in 5 holes. Two more drill rigs have been mobilized to the project for expansion of known in-pit resources along strike and dip, and infill drill areas to increase measured and indicated resources and target other structures for resource expansion and discovery.
  • Mag Silver Corp. released its audited consolidated financial results for 2020. Processing at the nearby Fresnillo mine plant of mineralized material from development headings began in August, with 71,859 tonnes milled @ 328 gpt Ag, producing 616.3 K Oz Ag, 1,029 Oz Au, 163 tonnes Pb, 224 tonnes Zn, netting $11.46 M as gross profit. Construction of the 4,000 tpd Juanicipio plant continues and the underground development now exceeds 35 km. The plant is now expected to commence commissioning in Q4-2021 and to reach 90-95% capacity in 2022. By the end of the period the company had cash and cash equivalents of $94 M.

ON FINANCING

  • Colibri Resource Corp. is to conduct a non-brokered private placement for gross proceeds of up to CAD$2.2 M. (Evelyn, Sonora).
  • Sonoro Gold Corp. will undertake a non-brokered private placement offering to raise up to C$2 M (Cerro Caliche, Sonora).
  • Telson Mining Corp. closed the non-brokered private placement announced in February, for aggregate gross proceeds of $10.08 M (Tahuehueto, Durango).
  • Equinox Gold Corp. announced that in response to a request from Solaris Resources Inc. the company has agreed to sell 10 M shares of Solaris for gross proceeds of C$82.5 M (Los Filos, Guerrero).
  • Torex Gold Resources Inc. announced the early repayment of the $40 M of debt in relation to the 2019 Debt Facility and is now debt free other than approximately $5 M of finance leases. Torex has signed a Third Amended and Restated Credit Agreement in connection with a two-year senior secured $150 M revolving debt facility (Limón Guajes, Guerrero).
  • Reyna Silver Corp. will make an application to the TSX Venture Exchange for issuing $699.3 K in common shares as compensation to technical consultors and advisors advancing the portfolio properties of Reyna Silver (Guigui, Chihuahua).

ON RESOURCES AND DEVELOPMENT

  • Fortuna Silver Mines Ltd. released results from step-out drilling at the San Jose mine in Oaxaca. The 4,670 m program in 22 holes established continuity of high-grade mineralization in the upper levels of the La Trinidad footwall structures. Highlighted true width intercepts comprise 4.1 m @ 699 gpt Ag, 3.57 gpt Au; 5.4 m @ 1,931 gpt Ag, 6.76 gpt Au; 9.5 m @ 306 gpt Ag, 1.38 gpt Au; 3.4 m @ 760 gpt Ag, 3.24 gpt Au; 8.4 m @ 967 gpt Ag, 4.25 gpt Au; 1.4 m @ 809 gpt Ag, 2.78 gpt Au; 14.9 m @ 473 gpt Ag, 1.25 gpt Au. “The Brownfields exploration program budget for 2021 at the San Jose Mine is US$10.9 million, which includes 33,800 meters of diamond drilling and 1,770 meters of underground development for drilling access, platforms, and services”.
  • Argonaut Gold Inc. released a new mineral resource estimate to the end of 2020, including figures for its projects in Mexico. The table below includes figures for El Castillo and San Agustin in Durango, La Colorada in Sonora, Ana Paula in Guerrero and San Antonio in Baja California Sur.    
  • SilverCrest Metals Inc. released financial results for 2020 and updated on construction and exploration activities. At Las Chispas, in Sonora, 173,000 m of in-fill and expansion drilling and 6.1 km of underground development and in-vein drifting were completed in 2020. At the end of the year SilverCrest entered into a $76.5 M construction contract for a 1,250 tonnes per day process plant at Las Chispas. In February 2021 a feasibility study (FS) was completed, at an estimated cost of $137.7 M; also in February the company completed a bought deal offering for gross proceeds of $138.1 M. The Picacho property, 40 km from Las Chispas, was acquired in mid 2020, and 5,800 m were drilled before the end of the period. For 2021, 356,000 m of drilling are planned, mostly at Las Chispas; currently there are six core rigs at Las Chispas and three at Picacho, with 22,000 m and 10,000 m already drilled during 2021 respectively. At the end of 2020 the company held $135.1 M as cash and cash equivalents.
  • Southern Silver Exploration Corp. reported high-grade Cu-Au-Ag intercepts at its Cerro Las Minitas project in Durango. At Mina La Bocona target, highlighted true-width intervals comprise: 6.3 m @ 134 gpt Ag, 0.5 gpt Au, 2.3% Cu (including 1.1 m @ 567 gpt Ag, 2.3 gpt Au, 11.2% Cu in the Bocona Chimney, and 3.8 m @ 217 gpt Ag, 0.3 gpt Au, 3.3% Pb, 0.7% Zn in the Muralla Chimney.
  • Torex gold Resources Inc. reported that in 2020 total reserves for El Limón Guajes complex in Guerrero declined 15% due to depletion. The table below shows total reserves and resources to the end of 2020.
  • Ridgestone Mining Inc. provided an update on activities at its Rebeico and Guadalupe y Calvo projects. At Guadalupe y Calvo in Chihuahua, Ridgestone is working to review all the historical data in the project, which includes over 78,000 m of drilling since the early 2000’s. “The Company anticipates a phased exploration drill program which will serve to confirm the continuity within the historical resource area, in addition to targeting a significant expansion of known mineralization”. At Rebeico, in Sonora, “The Company is currently recompiling and reinterpreting the results from prior exploration campaigns and anticipates providing an update in the near-term”.
  • Minera Alamos Inc. selected TRIGUSA as mining contractor for its Santa mine in Sonora. “Trigusa’s mining experience includes open pit mining, crushing, tailings dam construction and heap leach pads and ponds at projects in multiple states including Sonora”. The major construction activities related to the gold recovery (carbon) plant are now complete and the initial heap leach pad area has also been completed.
  • GoGold Resources Inc. released the results from 7 drill holes from El Orito area at its Los Ricos North project in Jalisco. Highlighted core length intercepts comprise 25.9 m @ 9 gpt Ag, 0.25%Pb, 0.85% Zn; 20.0 m @ 10 gpt Ag, 0.27% Pb, 1.08% Zn; 28.2 m @ 45 gpt Ag, 0.10 gpt Au, 0.58% Pb, 1.26% Zn; 11.4 m @ 27 gpt Ag, 0.24% Cu, 2.04% Pb, 5.20% Zn; 48.6 m @ 35 gpt Ag, 0.19% Cu, 1.24% Pb, 2.36% Zn (including 6.4 m @ 139 gpt Ag, 0.17 gpt Au, 0.82% Cu, 3.76% Pb, 6.70% Zn); 31.4 m @ 44 gpt Ag, 0.10 gpt Au, 0.13% Cu, 0.89% Pb, 0.86% Zn; 31.4 m @ 35 gpt Ag, 0.20 gpt Au, 0.14% Cu, 0.36% Pb, 0.28% Zn. “The El Orito deposit is unique in the Los Ricos district as it is the deeper part of the system where silver and base metals are present, while the other targets in the system to date have shown only silver and gold”.
  • First Majestic Silver Corp. filed updated technical reports for its three operating mines: San Dimas in Sinaloa, Santa Elena in Sonora and La Encantada in Coahuila. Below is a table that also includes the resources for San Martín in Jalisco, La Parrilla in Durango, Del Toro in Zacatecas and La Guitarra in Estado de Mexico.
  • Fabled Silver Gold Corp. informed on the currently ongoing  8,000 m drilling program at its Santa Maria project in Chihuahua. “We are heading into areas never explored before, with new ideas to test our structure-on-structure theory over the Property. Hole SM20-07 intercepted two broad zones of northwest trending, never seen before, semi-massive marcasite, (pyrite) in hornfels, and to the east 225 meters, we tried to cross the major C1 regional north – south fault in the center of the Property.”

ON DEALS AND CORPORATE ISSUES

  • GR Silver Mining Ltd. completed the acquisition of Marlin Gold Mining Ltd., which owns La Trinidad mine in Sinaloa and 12 concessions totaling 107,392 ha adjacent to GR Silver’s existing portfolio of properties. The properties come with a database that includes 700 stream sediment samples, 500 rock samples and over 9,000 soil samples. A total of 40,500 m of diamond, RC and sonic drilling were completed by previous operators. GR Silver will pay CDN$50 K to Mako, and “Oro Gold will grant Mako a 1% net smelter return (“NSR”) royalty on the concessions owned by Oro Gold. GR Silver Mining and/or Oro Gold will be granted the right to purchase the NSR at any time upon making a one-time payment of US$2,000,000. Mako shall be responsible for and shall pay all costs related to the Closure Plan Activities at La Trinidad….”.
  • Silver Bull Resources Inc. announced “it has won a definitive and conclusive decision in its favor in a lawsuit filed by a local mining co-operative called Minera Norteños in relation to the Sierra Mojada project” (Coahuila). “Despite the fact that the Company has at all times proceeded in accordance with the law, the Sierra Mojada project remains under an illegal blockade manned by a small group of radical members from within Minera Norteños. We believe their actions do not represent the view of the vast majority of the Minera Norteños members and wider local community, and we are working with authorities to resolve the situation in a safe, fair, and timely manner. We remain committed to good faith dialogue with selected members from Minera Norteños to find a solution….”
  • Argonaut Gold Inc. informed that the previously announced definitive agreement to sell its Ana Paula project in Guerrero expired in March 31, 2021. “The acquiring company did not fulfill its obligations in relation to financing and receipt of certain regulatory and other approvals”.

ON SOCIAL RESPONSIBILITY

  • Fresnillo PLC informed on cultural activities aimed at helping local communities and improving the environment.

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

On the image below:  Boiling texture in a quartz vein from a project in Sonora. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the Fourth Week of March, 2021.

Orogenic Gold Vein

By Miguel A Heredia

During the twelfth week of the year (March 22th to March 28th, 2021), at least 26 press releases were announced by companies working in Mexico and 4 news published by the media, with seven disclosing deals and corporate issues, seven reporting on resources and development, five announcing financial rounds, five informing on exploration resources, three commenting on Mexican issues, two discussing social issues, and one communicating production and financial results.  ON MEXICO ISSUES, Americas Gold and Silver announced that its Cosala mine in Sinaloa continue on care and maintenance after a group of individuals blocked illegally their operation since last February 2020. The head of the Tax Administration Service (SAT), Raquel Buenrostro, declared that Mining companies pay only 0.0002% of their income in taxes, however, Fernando Alanís, president of the Mexican Mining Chamber (Camimex), stated that mining in Mexico has higher taxes than those of its direct competitors. Mexico’s rich mining industry has been the basis for the success of the automotive industry for more than 500 years. ON EXPLORATION, In Sonora, Silver Tiger reported results from two holes collared at its El Tigre project. In Chihuahua, Radius completed the phase four drilling at its Amalia project.  In Sinaloa, Kootenay commenced a 3,500m core drilling program at its Copalito project, and Brigadier reported that it has rehabilitated, mapped and sampled over 29 newly discovered historic mine workings in the central part of its Picachos project. In Durango, Mithril provided an update on the exploration activities carried out at its Copalquin property. ON MINING, Impact Silver reported the 2020 full year production and financial results from its Zacualpan mine in the State of Mexico. ON  FINANCING, Empress closed its previously announced bought deal offering for gross proceeds of CAD $15.75M, and also closed a non-brokered private placement for gross proceeds of CAD $650K (Pinos project, Zacatecas). Fabled commenced to trade on the OTCQB Venture Marketplace under the symbol “FBSGF” (Santa Maria property, Chihuahua). Gold Resource declared March 2021 monthly dividend (Arista mine, Oaxaca). Silver Spruce granted 250K stock options to a consultant of the company with an exercise price of $0.06 per share (El Mezquite project, Sonora). VanGold granted stock options to officers and directors of the company (El Pinguico property, Guanajuato).  ON RESOURCES AND DEVELOPMENT, Fabled release assay results of hole SM 20-06 from its ongoing 8,000m drilling program on its Santa Maria project at Chihuahua. Golden Minerals announced expansion drilling at its Rodeo project in Durango. GR Silver released assay results from the current core drilling program from its Plomosas property in Sinaloa. Orla provided an update on the construction of its Camino Rojo mine operation in Zacatecas. Sonoro reported results from 20 RC holes drilled at its flagship property Cerro Caliche in Sonora. Torex announced results from the 2020 infill drilling program at its Media Luna property in Guerrero. Zacatecas Silver reported results from the re-sampling of drill core from its Panuco property in Zacatecas.   ON DEALS AND CORPORATE ISSUES, Agnico announced the appointment of a new member to its Board of Directors (Pinos Alton mine, Chihuahua). Chesapeake announced the resignation of its Director (Metates property, Durango). GoGold presented results from its annual general meeting of shareholders (Los Ricos project, Jalisco). Inomin completed the 100% acquisition of the La Gitana and the Peña Blanca properties in Oaxaca from Gunpoint. Orogen appointed a new member to its Board of Directors (El Ermitaño, Sonora). Telson engaged RB Milestone Group LLC to provide corporate communications advisory, non-deal roadshow advisory, market intelligence advisory, and business referrals to the management team of the company (Tahuehueto project, Durango). ON SOCIAL RESPONSIBILITY, AIMMGM Sonora District Ladies Committee recycles to help children with cancer. Peñasquito mine (Newmont) awarded scholarships to students of the Ignacio López Rayón elementary school.

ON MEXICO ISSUES

  • Americas Gold and Silver Corporation announced that its Cosala mine in Sinaloa continue on care and maintenance after a group of individuals including a small minority of the company´s hourly workforce blocked illegally the operation since last February 2020. Americas has participated in a number of meetings and discussions with senior members of the Mexican federal government to regain access to the operations but the last comments made by the Mexican President on March 17, 2020 related to a possible cancelation of the mining concessions are concerning. The company is confident that there is no basis in the fact or in the law that would diminish the company´s property rights.”The company looks forward to continuing to work with the Canadian government, the Mexican Minister of Economy and the Minister of Foreign Affairs in providing the facts, providing solutions and resolving the issues to avoid an arbitration issue between Canada and Mexico. The company looks with optimism to getting our employees back on the job as soon as possible”.
  • The head of the Tax Administration Service (SAT), Raquel Buenrostro, declared that Mining companies pay only 0.0002% of their income in taxes, however, Fernando Alanís, president of the Mexican Mining Chamber (Camimex), stated that mining in Mexico has higher taxes than those of its direct competitors. “Surely the SAT will have its figures, but what the figures tell us is that mining pays taxes and that it has a higher tax rate than any other economic activity in the country and that if a higher tax burden continues to be imposed, mining it will not be attractive in Mexico”. Raquel Buenrostro assured that in order not to raise taxes, the institution that she heads would review the form of payment in the mining sector. In this same theme, figures contained in a study by Price Waterhouse Coopers assure that in Mexico the tax burden for the mining sector is 51.3% of fiscal profit, which places it well above countries such as Canada, Chile, Peru and the United States, which have tax rates of 30 to 39%. In addition, as of this year, the possibility of deducting 50% of the payment of rights on concessions was removed, so the tax rate rose to 52.6%.
  • Mexico’s rich mining industry has been the basis for the success of the automotive industry for more than 500 years. It was stated by Sergio Almazán, president of the Association of Engineers of Mines, Metallurgists and Geologists of Mexico (AIMMGM). For Francisco Quiroga, former Undersecretary of Mining of the Ministry of Economy, mining has allowed Mexico to extract iron to produce, along with carbon, steel, a key product for automotive manufacturing. Karen Flores, general director of the Mexican Mining Chamber (Camimex), agreed, highlighting that the mining sector contributes 8.3% to the industrial GDP and 2.5% to the national GDP. Mexican auto exports totaled USD $40,495M in 2020.

ON EXPLORATION

  • Silver Tiger Metals Inc., reported results from two holes collared at its El Tigre project in Sonora. Hole ET-21-211 collared in the Sooy Vein encountered 0.11 g/t Au, 131 g/t Ag, 0.06% Cu, and 0.44% Pb (156 g/t AgEq) over 14m, including 0.24 g/t Au, 325 g/t Ag, 0.14% Cu, and 1.21% Pb (385 g/t AgEq) over 4.9m, including 0.67 g/t Au,  1,149 g/t Ag, 0.47% Cu, and 4.3% Pb (1,347 g/t AgEq) over 1.4m, while hole ET-21-213 intercepted 0.02 g/t Au, 246 g/t Ag, 0.29% Cu, 0.05% Pb, and 0.05% Zn (279 g/t AgEq) over 8.4m in the Sooy Vein, including 0.05 g/t Au, 1,260 g/t Ag, 1.41% Cu, 0.04% Pb, and 0.25% Zn (1,355 g/t AgEq), and encountered 0.22 g/t Au, 266 g/t Ag, 0.13% Cu, 0.21% Pb, and 0.14% Zn (304 g/t AgEq) over 7.6m in the Sooy Footwall Zone, including  0.12 g/t Au, 808 g/t Ag, 0.35% Cu, 0.45% Pb, and 0.26 % Zn (871 g/t AgEq) over 2.3m, including 0.17 g/t Au, 3,046 g/t Ag, 1.35 % Cu, 1.54% Pb, and 0.86% Zn (3,254 g/t AgEq) over 0.6m.
  • Radius Gold Inc., drilled 4,386m in ten holes to complete the phase four drilling at its Amalia project in Chihuahua, through its JV partner Pan American Silver Corp. Results for holes AMDD20-22 to AMDD21-25 have been previously reported, with results for holes AMDD21-26 to 31 pending. “Geological teams are now conducting detailed mapping and sampling of the El Cuervo extensions and California vein system. New environmental permits have been submitted for drilling of these targets later this year”.
  • Kootenay Silver Inc., commenced a 3,500m core drilling program at its Copalito project in Sinaloa, to test continuity and size in zones already identified in a previous drilling campaign, as well as to test other undrilled target areas in the property.
  • Brigadier Gold Limited reported that it has rehabilitated, mapped and sampled over 29 newly discovered historic mine workings in the central part of its Picachos project in Sinaloa, near the intersection of the ENE trending Cocolmeca Vein system and northwesterly trending El Placer system. The underground workings are concentrated in two areas named El Cobre and El Placer Norte. Sampling results are pending.
  • Mithril Resources Ltd., provided an update on the exploration activities carried out at its Copalquin property, Durango. Hole CDH-054, collared at La Soledad target returned 10.36 g/t Au and 81 g/t Ag over 4.88m, extending the high-grade mineralization further to the west and down dip. The company also reported that a total of 697 soil samples collected at Los Pinos/El Indio, Los Reyes, Refugio and Zaragoza target areas were analyzed with the XRF analyzer identified strong silver anomalies in the district, with values ranging from less than detection (approximately 2 ppm) to 154 ppm Ag. Samples were considered anomalous at or above 5 ppm Ag. Anomalous silver was identified in all targets. Silver is considered to be a good indicator for hidden veins or portions of known veins that are better mineralized. The soil samples were shipped to the lab for Au assays. Results are pending.

ON MINING

  • Impact Silver Corp., reported the 2020 full year production and financial results from its Zacualpan mine in the State of Mexico. The company milled 140,069 tonnes of 172 g/t Ag to produced 646.5K Oz Ag, at a production cost of $80.82 per tonne produced. Impact reported a net income of $2.3M on $15.6 M in revenue and EBITDA of $2.5 M, and mine operating earnings before amortization and depletion of $3.3M. Cash position at December 31, 2020 was $20.4M and working capital of $20.3M.

ON FINANCING

  • Empress Royalty Corp., closed its previously announced bought deal offering for gross proceeds of CAD $15.75M. In addition to the offering, the company closed a non-brokered private placement by the issue of an additional 1.3M units of the company for gross proceeds of CAD $650K (Pinos project, Zacatecas).
  • Fabled Silver Gold Corp., commenced to trade on the OTCQB Venture Marketplace under the symbol “FBSGF” (Santa Maria property, Chihuahua).
  • Gold Resource Corporation declared March 2021 monthly dividend. The company will paid on April 23, 2021, one-third of a cent for common share to shareholders (Arista mine, Oaxaca).     
  • Silver Spruce Resources Inc., granted 250K stock options to a consultant of the company with an exercise price of $0.06 per share and an expiry date of March 23, 2026. The stock options will vest 1/3 on the date of the grant, 1/3 on the first anniversary of the grant and the final 1/3 on the second anniversary of the grant (El Mezquite project, Sonora).
  • VanGold Mining Corp., granted 6.45M stock options, including 3.45M options to officers and directors of the company. The options, which shall vest over a two-year period, are exercisable up to five years from the grant date and have a strike price of $0.51 (El Pinguico property, Guanajuato). 

ON RESOURCES AND DEVELOPMENT

  • Fabled Silver Gold Corp., release assay results of hole SM 20-06 from its ongoing 8,000m drilling program on its Santa Maria project at Chihuahua. Hole 6 intersected six silver bearing structures including five new mineralized north-south trending structures. It encountered 0.06 g/t Au and 49 g/t Ag (53 g/t AgEq) over 0.4m; 0.15 g/t Au and 45 g/t Ag (53 g/t AgEq) over 5.4m; 0.15 g/t Au and 43 g/t Ag (48 g/t AgEq) over 5.3m; and 0.15 g/t Au and 37 g/t Ag (45 g/t AgEq) over 14.7m, including 0.19 g/t Au and 55 g/t Ag (65 g/t AgEq) over 3m, including 0.2 g/t Au and 79 g/t Ag (89 g/t AgEq) over 0.9m. Fabled has completed drill holes SM 20-07 – 09 for a total of 2,134 meters of the ongoing 8,000 meter drilled program completed to date. Holes SM20-07 – 09 have been sampled and submitted to lab for analysis.  Hole SM 20-10 is in progress. 
  • Golden Minerals Company announced expansion drilling at its Rodeo project in Durango. The drill program will consist of 2,000m to test targets adjacent to the current pit with the aim to extend the life of the Rodeo mine well beyond the currently estimated life around 2.5 years.
  • GR Silver Mining Ltd., released assay results from the current core drilling program from its Plomosas property in Sinaloa.  The most significant drill interception was encountered in hole PL121-107 with a shallower intercept of 63 g/t Ag, 0.03 g/t Au, 0.1% Pb, and 0.1% Zn (73 g/t AgEq) over a true width (TW) of 12.9m, including 126 g/t Ag, 0.03 g/t Au, and 0.1% Zn (132 g/t AgEq) over a TW of 4.8m, and a deeper intercept of 377 g/t Ag, 0.23 g/t Au, 0.7% Pb, and 1.5% Zn (466 g/t AgEq) over a TW of 13.5m, including 633 g/t Ag, 0.2 g/t Au, 0.9% Pb, and 1.5% Zn (726 g7t AgEq) over a TW of 4.5m, including 1,987 g/t Ag, 0.58 g/t Au, 1.9% Pb, and 4% Zn (2,218 g/t AgEq) over a TW of 1m.
  • Orla Mining Ltd., provided an update on the construction of its Camino Rojo mine operation in Zacatecas. Orla reported that 94% of the detailed engineering is competed and 93% of the project purchase orders have been made. “Current construction activities include earthworks, installation of the camp and offices, drilling of back-up water wells and site fence erection. Process pond and reclaim tunnel areas are being excavated and foundations are being prepared for the Merrill Crowe plant, crusher, camp, as well as ancillary buildings. The 33-kV power line to site was approved by the Mexican federal electricity commission in 2020 and construction is currently 73% complete. Fabrication of crushing, conveying, and stacking equipment and the Merrill Crowe plant remain on schedule. Process plant equipment began arriving on site in the fourth quarter of 2020. Deliveries thus far include crushing, stacking, conveying equipment and the Merrill Crowe plant as well as heap leach and solution ponds piping and liners”.
  • Sonoro Gold Corp., reported results from 20 RC holes totalling 1,792m drilled at Buena Suerte and Japoneses zones within its flagship property Cerro Caliche in Sonora. Highlights from Buena Suerte area include hole SCR-201 with 0.74 g/t Au over 14m, including 2.09 g/t Au over 1.52m; hole SCR-203 with 0.71 g/t Au over 9m, including 2.04 g/t Au over 1.53m; hole SCR-205 with 0.59 g/t Au over 14m, including 1.53 g/t Au over 1.53m: hole SCR-207 with 0.62 g/t Au over 5m, including 1.3 g/t Au over 1.52m; hole SCR-209 with 0.77 g/t Au over 57m, including 1.79 g/t Au over 1.53m; hole SCR-211 with 4.77 g/t Au over 5m; and hole SCR-219 with 1.43 g/t Au over 16.76m, including 6.47 g/t Au over 1.52m. Highlights from Japoneses area include hole SCR-204 with 1.35 g/t Au over 10.67m, including 6.33 g/t Au over 1.53m; hole SCR-214 with 0.58 g/t Au over 18.29m, including 1.97 g/t Au over 1.52m;  hole SCR-215 with 0.52 g/t Au over 12.2m, hole SCR-218 with 0.5 g/t Au over 22.86m, including 1.95 g/t Au over 1.52m; and hole SCR-220 with 0.53 g/t Au over 22.86m, including 1.84 g/t Au over 1.53m. “Spacing between the Buena Suerte and Japoneses zones has been reduced to approximately 100 meters in the northern extensions indicating the zones may merge with further infill drilling”.
  • Torex Gold Resources Inc., announced results from the 2020 infill drilling program at its Media Luna property in Guerrero. Aim of the infill drilling program is to upgrade the inferred mineral resources to the indicated category. Highlights include hole ML20-407D with 6.16 g/t Au, 79 g/t Ag, and 3.58% Cu (12.73 g/t AuEq) over a true width (TW) of 13.66m; hole ML20-417D with 11.25 g/t Au, 12 g/t Ag, and 0.64% Cu (12.4 g/t AuEq) over a TW of 11.92M; hole ML20-418D with 5.45 g/t Au, 43 g/t Ag, and 2.48% Cu (9.84 g/t AuEq) over a TW of 22.47m; hole ML20-433D with 9.37 g/t Au, 190 g/t Ag, and 6.6% Cu (22.05 g/t AuEq) over a TW of 14.59m; hole ML20-443D with 9.88 g/t Au, 44 g/t Ag, and 1.72% Cu (13.11 g/t AuEq) over a TW of 13.68m; hole ML20-454D with 9.16 g/t Au, 9 g/t Ag, and 0.85% Cu (10.6 g/t AuEq) over a TW of 16.57m; hole ML20-458D with 5.9 g/t Au, 8.7 g/t Ag, and 0.7% Cu (7.11 g/t AuEq) over a TW of 25.47m; and hole ML20-492DA with 25.46 g/t Au, 36 g/t Ag, and 0.83% Cu (27.21 g/t AuEq) over a TW of 22.95m. The infill drilling conducted to date has increased drill density in specific areas of the resource model to an approximate 30-metre spacing (from an approximate 100-metre spacing). The final, upgraded Mineral resource estimate for Media Luna, due for completion in Q1 2022, is expected to provide for a more robust mine plan in the upcoming Feasibility Study.
  • Zacatecas Silver Corp., reported results from the re-sampling of drill core from its Panuco property in Zacatecas being undertake with regards to the resource confirmation process.  A 57 kg sample composite of historic Panuco drill core from one of the higher grade shoots has assayed higher than the grade described in the historic resource, with the sample returning assays of 198 g/t AgEq. (146 g/t Ag, 0.30 g/t Au, 0.13% Zn, and 0.42 % Pb). In addition, a 100Kg composite sample of drill core used in the Panuco resource estimation was sent to the lab for benchmark metallurgical work. Panuco has an historic inferred mineral resource of 19,472,901 Oz AgEq (cut-off 100 g/t AgEq.) from 3,954,729 tonnes at 153 g/t AgEq (136 g/t Ag, 0.14 g/t Au, 0.012% Pb, 0.11% Zn).

ON DEALS AND CORPORATE ISSUES

  • Agnico Eagle Mines Limited announced the appointment of a new member to its Board of Directors (Pinos Altos mine, Chihuahua).
  • Chesapeake Gold Corp., announced the resignation of its Director (Metates property, Durango).
  • GoGold Resources Inc., presented results from its annual general meeting of shareholders (Los Ricos project, Jalisco).
  • Inomin Mines Inc., completed the 100% acquisition of the La Gitana and the Peña Blanca properties in Oaxaca from Gunpoint Exploration Ltd, by exchanging 1M common shares of the Company, $25K cash, and the grant of a 1.5% NSR payable to Gunpoint on the Pena Blanca property (with an option for Inomin to purchase 0.5% of the NSR at any time for $1M). La Gitana is subject to an existing 3% NSR to a third-party which will be assumed by Inomin.
  • Orogen Royalties Inc., appointed a new member to its Board of Directors (El Ermitaño, Sonora).
  • Telson Mining Corporation engaged RB Milestone Group LLC for twelve months to provide corporate communications advisory, non-deal roadshow advisory, market intelligence advisory, and business referrals to the management team of the company (Tahuehueto project, Durango).

ON SOCIAL RESPONSIBILITY

  • AIMMGM Sonora District Ladies Committee sent 790 kilos of plastic caps to the association “Banco de Tapitas”, so that the material is recycled and the proceeds are donated to minors suffering from cancer. Banco de Tapitas A.C. operates throughout Mexico on a non-profit basis, collecting plastic caps to recycle them and generate resources to fund treatments, transfers, medicine and comprehensive support mainly for children with cancer, although it extends its help to people up to 21 years of age.
  • Peñasquito mine (Newmont) awarded scholarships to students of the Ignacio López Rayón elementary school. One of the most important achievements for this school, which has 23 students in the Regular Education Support Unit (three of them with a motor disability), is the construction of two functional ramps for those with this type of disability. One was installed at the entrance of the school and one more within the facilities, so that these students can move freely in their place of study and have autonomy in this space.

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, an outcropping Orogenic Au vein in a project in Sonora, Mexico.  Photo by Miguel A Heredia.

The Mining and Exploration News in Mexico; Highlights on the Third Week of March, 2021

By Jorge Cirett

During the 11h week of the year (March 15th to March 21st, 2021), at least 34 press releases were announced by companies working in Mexico. To note, eight companies posted exploration advances on their properties, four presented quarterly results, five posted on financing or share options (including C$12 M, $10.3 M, C$14.1 M and C$80.4M), eight more on project development and five on corporate issues. ON MEXICO ISSUES, 25 Mining projects in Mexico are in line for 2028. At PDAC, a minister from Canada asked for a stable and predictable business environment in Mexico. The president of Mexico, Andres Manuel Lopez Obrador, threatened mining companies with voiding their concessions if they break the law. ON EXPLORATION, in Baja California, One World Lithium announced the incoming drilling at its Salar del Diablo project. In Sonora, Kootenay Silver informed of excellent grades in trenching at its Maria Elena project; Tocvan Ventures updated on exploration at Pilar; Prismo Metals filed a technical report for Los Pavitos project. In Durango, Mithril Resources informed on a high-grade gold intercept at Copalquin. In Guerrero, Pantera Silver commenced exploration in Nuevo Taxco. In Zacatecas, Zacatecas Silver is preparing a resource estimate on the Panuco deposit.  ON MINING, Comet Resources Excellon Resources, Starcore International and Sierra Metals released quarterly and/or full year 2020 reports. Activities at McEwen’s El Gallo mine in Sinaloa, which is in residual leaching, were suspended by an illegal blockade. ON FINANCING, Empress Royalty, Southern Silver, Almaden Minerals, Santacruz Silver Mining and Premier Gold released news on financing. ON RESOURCES AND DEVELOPMENT, Almaden Minerals is resuming exploration at the Ixtaca property in Puebla. Discovery Metals released drilling results from Cordero in Chihuahua. Chesapeake Gold received approval for a bulk drilling program at Metates, Durango. GoGold Resources released drilling results from Los Ricos North in Jalisco. Southern Silver is doubling the size of its drilling program at Cerro Las Minitas in Durango. Consolidated Zinc released the updated mineral resource for the Plomosas mine in Chihuahua. Prime Mining released drilling results for Los Reyes in Sinaloa. Azucar Minerals released results from drilling at El Cobre, Veracruz. ON DEALS AND CORPORATE ISSUES, Radius Gold optioned the Maricela property in Sonora. Sailfish is to prepare an updated mineral resource for Gavilanes in Durango. VanGold Mining signed the definitive agreement with Endeavour Silver for the acquiring the El Cubo mine in Guanajuato. Tarachi Gold completed the acquisition of El Magistral tailings project. Prospero Silver is changing name to Keon Capital. ON SOCIAL RESPONSIBILITY, Grupo Mexico and Fresnillo PLC informed on actions related to social betterment of communities near its operations.

ON MEXICO ISSUES

  • 25 Mining projects in Mexico are in line for 2028 with a total of US$7.8 B (US$7,800 M in Mexican notation). El Arco in Baja California (US$2,900 M), Media Luna in Guerrero (US$496 M), Expansion Herradura (US$490 M), Orysivo in Chihuahua (US$465 M), Juanicipio in Zacatecas (US$440 M) and Sonora Lithium (US$420 M) are among the largest of these.   
  • At the virtual PDAC (Prospectors and Developers Association of Canada) 2021 conference Mary Ng, Minister of Small Business, Export Promotion and International Trade for Canada and Tatiana Clouthier, head of the Economy Secretariat in Mexico met and spoke about the strengthening of commercial ties between the two countries, particularly in the energy and mining sectors. Minister Ng stressed the need to keep a stable and predictable business environment for Canadian companies working in Mexico, especially in mining, and expressed its worries for the recently approved energy law and its possible negative impact.
  • In his press conference the president highlighted the cases of Americas Gold and Silver, with his view that it is trying to evade the law on unionized work, and that of First Majestic which he accused of trying to evade taxes (as in other industries, the president disregards any effect on investment and employment by his rigid stance). He suggested the Canadian government should help make the companies comply as in Canada.

ON EXPLORATION

  • Pantera Silver Corp. has mobilized its field personnel to the Nuevo Taxco Silver project in Guerrero. The 1,100 hectares project displays 21 veins 150-350 meters in length within a 135 hectares portion of the property. Of 395 historical samples, 119 grade over 100 gpt Ag, including 18 between 500-900 gpt Ag and three samples over 1,000 gpt Ag. An initial 1,600 meter program is to test the 21 veins area.
  • One World Lithium Inc. is to start phase three drilling on April 15, 2021 at is Salar del Diablo project in Baja California. “If the results of DDH-3 warrant, the DDH-4 will be drilled in the same area…. DDH-3 (diamond drill hole) is located approximately 50 kilometers to the south of DDH-2” completed on the previous campaign.
  • Zacatecas Silver Corp. is to prepare a current resource estimate for the Panuco silver deposit at the Zacatecas Silver project in Zacatecas. The historic inferred mineral resource hosts 3.95 M tonnes @ 136 gpt Ag, 0.14 gpt Au, 0.12% Pb, 0.11% Zn (153.2 gpt AgEq), containing 19.5 M Oz Ag. Re-assaying of 15% of the core intervals used in the historic resource calculation is being performed to assist in the new resource estimation, as well as bench scale metallurgical test of mineralized core material.    
  • Kootenay Silver Inc. informed on the discovery of significant gold at its Maria Elena project in Sonora. Highlighted results from sampling in 8 trenches comprise 33 m @ 2.67 gpt Au (including  9 m @ 5.29 gpt Au, 1 m @ 23.7 gpt Au) in trench 6; 24 m @ 1.81 gpt Au (including 8 m @ 3.98 gpt Au, 1 m @ 17.25 gpt Au) in trench 4; 9 m @ 2.01 gpt Au (including 1 m @ 15.45 gpt Au) in trench 2. “Gold mineralization is hosted by stock works of quartz and quartz carbonate veins formed by conjugate sets of veins …. Numerous conjugate vein sets and associated stock work zones occur within a 1.5 by 1.5-kilometer area hosted within a diorite intrusion and are the source of the placer gold historically mined on the property”.
  • Canasil Resources Inc. informed on drilling at La Esperanza project in Zacatecas. Three holes in the La Esperanza  vein have already intersected the vein as projected, while a fourth is in progress. While the vein outcrops for 150 m, it has now been intersected for 525 m along strike and 350 m to depth.
  • Tocvan Ventures Corp. updated on exploration at its Pilar project in Sonora. On the Main Zone Extension, a 350 m section presents “altered vein zones” 5 to 20 m in width, strong oxidation and 800 m of anomalous soil samples with up to 106 and 911 ppb Au, and rock grab samples with 9.3 gpt Au. At the 4-Trench there is a 600 m trend that presents veins for 400 m of strike untested by drilling, rock grab samples with up to 24 gpt Au and historical artisanal workings for 350 m of strike.
  • Mithril Resources Ltd. informed on the drilling at El Refugio target in the Copalquin project in Durango. An exceptional core length interval of 4.17 m @ 62.0 gpt Au, 445 gpt Ag was drilled, and is characterized by abundant black sulfide and kaolinite, as well as by the presence of visible gold.
  • Prismo Metals Inc. filed a NI 43-101 technical report for its Los Pavitos project in Sonora. The 5,289-hectare concession is west of the Alamos district, displaying epithermal low sulfidation veins and orogenic gold shears. Highlighted rock sample results include 0.30 m @ 40.8 gpt Au, 0.65 m @ 4.86 gpt Au, 0.20 m @ 1.57 gpt Au, 2.5 m @ 1.5 gpt Au, 2.5 m @ 2.41 gpt Au, grab samples of up to greater than 10.0 gpt Au and dump samples with up to 5.26 gpt Au.

ON MINING

  • Comet Resources Ltd. presented its second half 2020 financial report. In the period the company spent US$2.35 M in mineral exploration and administration, raised US$3 M, acquired the Santa Teresa project in Baja California with 88.6 K Oz Au JORC compliant inferred resources.
  • McEwen Mining Inc. informed that activities at the El Gallo project in Sinaloa (currently on residual leaching) have been suspended as results of an illegal blockade of the main access to the property by members of nearby communities. “El Gallo has operated harmoniously with the local communities since mining started in 2012, having demonstrated a long-standing track record of supporting local communities. In this context, the current situation is surprising. The site remains minimally staffed to maintain appropriate safety and security, and the environmental systems. McEwen Mining is negotiating for a peaceful resolution to the issues”.
  • Excellon Resources Inc. reported financial results for the Q4 and full year 2020. During the quarter silver production at the Platosa mine in Durango increased to 355.6 K Oz, the strongest production since 2014, at an all-sustaining cost of $21.19 per Oz Ag. For the year, the revenue of $26.2 M was impacted by the temporary suspension related to the Covid pandemic. On the second half of the year 43.3 K tonnes were mined, producing 1.08 M Oz Ag.
  • Starcore International Mines Ltd. reported results for the quarter ended in January 2021. At the San Martin mine in Queretaro, 57.3 K tonnes were milled @ 1.66 gpt Au, 23 gpt Ag, recovering 88.8% Au, 57.1% Ag, to produce 2.7 K Oz Au, 23.8 K Oz Ag or 3,063 Oz AuEq at cash cost US$1,042 per Oz AuEq and an AISC of US$1,361 per Oz AuEq.
  • Mexus Gold US. Informed it has received the necessary explosives permit to mine the high grade Mexus II and Julio vein structures at its Santa Elena mine in Sonora.
  • Sierra Metals Inc. reported financial results for 2020. At Bolivar in Chihuahua, cash cost per CuEq Lb was $1.35 and AISC per CuEqLb was $1.88. At Cusi in Chihuahua, cash cost per AgEqOz was $15.70 and AISC per AgEqOz was $28.18. The company hold cash and cash equivalents of $71.5 M at the end of the period.

ON FINANCING

  • Empress Royalty Corp. entered into an agreement with Red Cloud Securities Inc. and Canaccord Genuity Corp. and a syndicate of underwriters that shall purchase shares of the company for gross proceeds of C$12 M. (Pinos, Zacatecas).
  • Endeavour Silver Corp. announced its common shares will be added to the S&P/TSX Composite and the NYSE Arca Gold Miners Index (Terronera, Jalisco).
  • Southern Silver Exploration Corp. raised $14.2 million in Summer of 2020. “Since the closing of the equity raise and the working interest purchase in September 2020, the Company has received a total of $2,428,228 from shareholder exercises of share purchase warrants, inclusive of the recent 6,000,000 share purchase warrant exercise by Electrum Global Holdings LP for proceeds of $480,000. Additionally, the Company has received $477,470 from the exercise of incentive stock options and finders’ warrants”.
  • Almaden Minerals Ltd. announced a US$10.3 M registered direct offering (Ixtaca, Puebla).
  • Santacruz Silver Mining Ltd. has increased the size of its previously announced non-brokered private placement offering, intending to raise now up to CDN$14.1 M (Zimapan, Hidalgo).
  • Premier Gold Mines Ltd. announced its wholly-owned subsidiary i-80 Gold Corp. closed its previously publicized private placement for aggregate gross proceeds of C80.4 M. “Premier remains focused on creating i-80 as a Nevada-focused mining company…” (Mercedes, Sonora).
  • Minera Alamos Inc. informed the board of directors approved the issuance of 7.25 M options to management, directors, employees and consultants, tied to production milestones (Santana, Sonora).
  • First Majestic Silver Corp. received regulatory consent to extend its share repurchase program to up to 10 M shares or 4.5% of the outstanding shares of the company (San Dimas, Durango).

ON RESOURCES AND DEVELOPMENT

  • Almaden Minerals Ltd. has resumed exploration in the area of the Ixtaca project in Puebla. Initial work is to focus in identifying drill targets in the SE Alteration Zone, 1 km SE from the Ixtaca deposit. Argillic alteration with hyperspectral signatures for kaolinite, alunite and buddingtonite is present, along with several areas of veining with anomalous pathfinder elements.
  • Discovery Metals Corp. announced results from 14 diamond drill holes targeting high-grade veins at its Cordero project in Chihuahua. Highlighted intercepts comprise 1.3 m @ 1,581 gpt Ag, 0.15 gpt Au, 9.9% Pb, 5.4% Zn; 8.9 m @ 267 gpt Ag, 0.91 gpt Au, 0.9% Pb, 0.8% Zn (including 1.0 m @ 1,280 gpt Ag, 4.24 gpt Au, 1.6% Pb, 3.4% Zn); 1.3 m @ 1,607 gpt Ag, 2.06 gpt Au, 5.2% Pb, 8.0% Zn; 10.0 m @ 92 gpt Ag, 0.09 gpt Au, 2.4% Pb, 3.4% Zn in the Josefina vein; 2.9 m @ 992 gpt Ag, 0.73 gpt Au, 12.9% Pb, 2.4% Zn in the South corridor and 4.0m @ 377 gpt Ag, 0.28 gpt Au, 7.1% Pb, 2.7% Zn (including 1.4 m @ 552 gpt Ag, 0.33 gpt Au, 11.0% Pb, 3.4% Zn); 1.2 m @ 241 gpt Ag, 0.52 gpt Au, 4.6% Pb, 10.4% Zn; 2.8 m @ 207 gpt Ag, 0.15 gpt Au, 3.7% Pb, 7.7% Zn on the Todos Santos vein. “The Company has completed 58,600 m (148 holes) as part of its expanded 65,000 m Phase 1 drill program. Assays from 24 holes are pending”.
  • Chesapeake Gold Corp. has received the final permits to commence a bulk drilling program at the Metates project in Durango. The company plans to drill 2,500 meters to recover 10 tonnes of large diameter (PQ) core for metallurgical testing to support a potential sulfide heap leach mine operation.
  • GoGold Resources Inc. released results from four more drill holes on the Casados area of the Los Ricos North project in Jalisco. Highlighted core length results comprise 10.3 m @ 0.43 gpt Au, 116 gpt Ag; 21.4 m @ 0.44 gpt Au, 98 gpt Ag; 49.1 m @ 0.54 gpt Au, 250 gpt Ag; 13.3 m @ 0.67 gpt Au, 204 gpt Ag; 5.1 m @ 1.94 gpt Au, 1,270 gpt Ag (including 0.8 m @ 10.31 gpt Au, 6,842 gpt Ag; 52.0 m @ 0.47 gpt Au, 127 gpt Ag; 8.3 m @ 0.94 gpt Au, 279 gpt Ag; 23.6 m @ 0.58 gpt Au, 156 gpt Ag (including 10.9 m @ 1.05 gpt Au, 307 gpt Ag); 33.6 m @ 0.23 gpt Au, 95 gpt Ag. The Casados vein dips 45 degrees, is hosted in andesitic tuffs and is exposed for 400 m in the surface.
  • Southern Silver Exploration Corp. is doubling the size of the current drilling program from 10,000 m to 20,000 m on the Cerro Las Minitas project in Durango. The current program has completed 28 core holes totaling 12,040 m since September 2020. “Drilling will continue with two drills targeting the east side of the Cerro where to date three near-surface sulphide lenses with Bonanza-grades of silver have been identified”. Assays from 11 drill holes are pending.
  • Consolidated Zinc Ltd. announced its updated mineral resource for the Plomosas project in Chihuahua. The resource estimate is JORC compliant and contains indicated mineral resources of 152 K tonnes @ 13.3% Zn, 6.0% Pb, 33.6 gpt Ag containing 20.2 K tonnes Zn, 9.1 K tonnes Pb, 164.6 K Oz Ag and inferred resources of 788 K tonnes @ 13.0% Zn, 2.9% Pb, 17.2 gpt Ag containing 102.1 K tonnes Zn, 22.7 K tonnes Pb, 435.5 K Oz Ag.
  • Prime Mining Corp. reported initial results from its 15,000 m drilling program at Los Reyes, in Sinaloa. The first hole at Guadalupe East intersected 20.1 m @ 3.25 gpt Au, 380 gpt Ag (including 6.5 m @ 6.51 gpt Au, 587 gpt Ag), this intercept is 150 m below any previous drilling; 3.8 m @ 3.69 gpt Au, 305 gpt Ag (including 2.1 m @ 6.18 gpt Au, 507 gpt Ag). Chip sampling of adularia bearing banded quartz veins in a new area returned several mineralized intervals, including 3 m @ 29.8 gpt Au, 1,132 gpt Ag.
  • Azucar Minerals Ltd. released results from drilling at the Porvenir zone at the El Cobre project in Veracruz. Some of the highlighted results comprise 77.65 m @ 0.26 gpt Au, 0.16% Cu (including 43.55 m @ 0.37 gpt Au, 0.21% Cu and 25.55 m @ 0.45 gpt Au, 0.23% Cu) in one hole and 16.70 m @ 0.10 gpt Au, 0.09% Cu; 37.00 m @ 0.12 gpt Au, 0.08% Cu.

ON DEALS AND CORPORATE ISSUES

  • Radius Gold Inc. has optioned the Maricela group of properties (155 ha) in Sonora. Radius can earn 100% interest in the property by paying US$1.25 M over three years. A total of US$30 K has been paid to date. The owner retains a 1% NSR which can be bought back for US$1 M. Mineralization is of low sulfidation epithermal style with 1-3 m massive quartz veins and stockworks over 10 meters in width hosted in andesitic volcanic rocks and felsic dykes emplaced sub-parallel to mineralized structures.
  • Sailfish Royalty Corp. announced on early February “that Mine Development Associates (“MDA”), a division of RESPEC, out of Reno, Nevada, was hired to prepare an updated mineral resource estimate on Gavilanes. The updated mineral resource estimate is a key milestone for the planned spinout of Gavilanes and the Company is pleased to report that MDA is expecting to complete their work in early Q2 2021”.
  • VanGold Mining Corp. signed a definitive purchase agreement with Endeavour Silver Corp. to acquire El Cubo mine and mill complex located 8 km from its El Pinguico project in Guanajuato. “According to the Company’s recently announced PEA from Behre Dolbear and Company (USA) Inc., (“Behre”) the Combined Project contains total indicated resources of 718,655 tonnes grading 160 gpt Ag and 1.90 gpt Au, or 306 gpt AgEq, which equates to 7.2 M oz AgEq; and total inferred resources of 1,453,000 tonnes grading 214 gpt Ag and 2.78 gpt Au, or 435 gpt AgEq, which equates to 20.4 M oz AgEq”. VanGold will pay $15 M as follows: $500 K (paid), $7 M on closing, anticipated to by the end of March 2021, $5 M on VanGold shares on closing and $2.5 M in promissory notes due 12 months from closing.
  • Tarachi Gold Corp. completed the acquisition from Manto Resources S.A. de C.V. of the Magistral mill and tailings project in Durango. A PEA is to be conducted to determine if modifications are needed on the mill’s flowsheet prior to commissioning. The tailings basin is to be tested with an auger drill rig, with six confirmation holes and eleven in-fill holes. Underground diamond core drilling has been progressing on the Jabali concession at its Tarachi project in Sonora.
  • Prospero Silver Corp. board of directors has approved the name change of the company to Keon Capital Inc., subject to the acceptance of the TSX Venture Exchange (Bermudez, Chihuahua).

ON SOCIAL RESPONSIBILITY

  • Fundación Grupo México and Granjas Carroll delivered fruit bearing trees to producers in Puebla.
  • Minera San Julian donated medical equipment in Chihuahua.

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

On the image below:  Core from Azure Mineral’s Oposura project in Sonora. Picture by Jorge Cirett.

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

By Jorge Cirett

During the 9th week of the year (March 1st to March 7th, 2021), there were at least 34 press releases by companies working in Mexico. To note, ten companies posted exploration advances on their properties, three presented quarterly results, five posted on financing or share options (for C$2.25 M, C$23 M and C$12 M), three more on project development and six on corporate issues. ON MEXICO ISSUES, the Zacatecas government is promoting talks between Canadian mining companies and mining concession owners. Mining companies raise US$280 million for Mexican projects. First Majestic initiated and arbitration process under NAFTA against the Mexican government. ON EXPLORATION, in Sonora, Silver Viper presented the highest gold results in drilling to date at La Virginia; Heliostar Metals commenced drilling at La Lola and started exploration at Cumaro and Oso Negro; Tocvan Ventures informed on detailed mapping and sampling at Pilar. Tarachi Gold started the second phase underground drilling campaign at La Dura mine at its Tarachi project. In Chihuahua, Kootenay Silver initiated the second phase drilling at Columba; Mammoth Resources began an IP survey at Tenoriba. Monarca Minerals is seeking a key surface access permit at San Jose. In Sinaloa, Oroco Resource conducted a helicopter magnetic survey at Santo Tomas. In Zacatecas, Zacatecas Silver is to explore the Zacatecas Silver project; Alien Metals commenced drilling at Donovan 2. ON MINING, Endeavour Silver, Fresnillo PLC and Great Panther Mining released quarterly and/or full year 2020 reports. ON FINANCING, One World Lithium, Silver Tiger Metals and Santacruz Silver Mining released news on their financing rounds for C$2.25 M, C$23 M and C$12 M respectively. Zacatecas Silver started trading on the TSX. Candelaria Mining granted options for 1 M shares. ON RESOURCES AND DEVELOPMENT, Sonoro Gold released metallurgical tests results from Cerro Caliche. GR Silver released results from one drill hole at Plomosas. Galore Resources released results from five holes drilled in 2019.  ON DEALS AND CORPORATE ISSUES, Empress Royalty is acquiring a silver stream on production from Telson’s Tahuehueto mine in Durango. Orex Minerals is in a 40-60 joint venture with Pan American Silver to explore the Sandra Escobar project in Durango. Ganfeng´s increased interest (to 50%) in Bacanora Lithium has been authorized by China. First Majestic Silver requested an arbitration procedure under NAFTA regarding a tax dispute with the Mexican government. Silver One Resources completed the sale of three properties to Silverton Metals, which in turn completed its qualifying transaction. ON SOCIAL RESPONSIBILITY, Peñoles, Fresnillo PLC and First Majestic Silver informed on actions and awards received by the companies relating to social responsibilities.

ON MEXICO ISSUES

  • The Zacatecas government is promoting talks between Canadian mining companies and mining concession owners. 
  • Mining companies raise US$480 million for Latin America projects. Gold and silver projects obtained US$194 million and US$121 million respectively. Most of that amount is directed to Mexico (US$280 M), Argentina (US$88.6 M), Brasil (US$42.8 M) and Chile (US$26.7 M). Specific projects financed include Las Chispas (Sonora), San Antonio (Sonora), Tahuehueto (Durango) and Cordero (Chihuahua).
  • First Majestic initiated and arbitration request under NAFTA against the government of Mexico. The request comes after failed attempts by the company to engage in negotiations with the government.

ON EXPLORATION

  • Silver Viper Minerals Corp. reported good drilling results from its La Virginia project in Sonora. Highlighted true width intervals comprise 80.08 m @ 18 gpt Ag, 0.69 gpt Au; 11.89 m @ 363 gpt Ag, 21.2 gpt Au (including 0.3 m @ 738 gpt Au, 10,681 gpt Ag, 6.74% Pb, 7.11% Zn); 28.95 m @ 44 gpt Ag, 0.77 gpt Au; 10.16 m @ 42 gpt Ag, 1.06 gpt Au; 0.92 m @ 231 gpt Ag, 11.80 gpt Au; 2.59 m @ 52 gpt Ag, 0.94 gpt Au; 1.52 m @ 78 gpt Ag, 1.07 gpt Au. “The upper portions of hole LV21-289 (azimuth 090, dip -450 ) encountered mineralized stringer intervals thought to represent the southern projection of the Western Zone. More consistent mineralization was encountered starting at 280 metres down hole, returning a down hole length measuring 130 metres core length with an average grade of 18 g/t silver and 0.69 g/t gold. Beneath this interval, a well mineralized breccia zone was encountered, starting at 424.85 metres down hole for 19.30 metres core length averaging 363 g/t silver and 21.2 g/t gold, and thought to represent the projection of El Rubi structure”.
  • Zacatecas Silver Corp. described its Zacatecas Silver Project in Zacatecas. The 7,826 ha Zacatecas Silver property in the Zacatecas district, includes the Panuco deposit and the Muleros, El Cristo and San Manuel-San Gill prospects.  Panuco has an historic resource of 19.47 M Oz Ag in 3.95 M tonnes @ 153 gpt AgEq (136 gpt Ag, 0.01% Pb, 0.11% Zn). At Muleros three veins can be traced for 3 km; El Cristo is the NW extension of the Veta Grande system, same that is reported to have produced over 200 M Oz Ag; San Manuel-San Gill is a relatively unexplored vein system and an 800 m long hematitic breccia is also present.
  • Alien Metals Ltd. announced the commencement of its drilling program at the Donovan 2 copper gold project in Zacatecas. The 2,500 m of drilling is to test targets defined by an IP geophysical survey conducted late in 2020. “Pursuant to the terms of the Earn-in Agreement, Capstone can acquire a 65% interest in Donovan 2 through committed expenditure and cash payments totalling ~US$3.9million. Capstone can move to an 80% interest in the Project through free-carrying Alien to completion of a prefeasibility study”.
  • Kootenay Silver Inc. initiated a 5,000 meters core drilling program at Columba, Chihuahua. “The program will focus on step out and infill drilling on impressive results to date in the high-grade F vein and its associated hanging wall vein, a new discovery blind to surface. Focus will then shift to expanding on numerous other high-grade results such as found in holes CDH 20-030 (415 gpt silver over 11.15 meters including 721 gpt silver over 4.07 meters) in the JZ area and CDH 20-082 (1,186 gpt silver over 4.6 meters) in the B Vein”.
  • Oroco Resource Corp. completed the airborne component of a helicopter magnetics survey over the Santo Tomas project in Sinaloa. The survey comprised 2,231 line-kilometers with tie-line separations of 50 m and 500 m in east-west and north-south orientations respectively; processed results are to be received within two months. Meanwhile, 3D IP surveys continue on the Brasiles zone. Oroco holds a 61.4% interest that can be increased to 81.0% in the core 1,173 ha of the Santo Tomas project, and a 77.5% interest in 7,808 ha surrounding and adjacent to the core concession.
  • Mammoth Resources Corp. has begun induced polarization/magnetometer surveys to infill most of the 60% of the 6-kilometer trend not covered by the previous geophysical survey at Tenoriba, Chihuahua. A total of approximately 70 line-kilometers are to be completed. 
  • Heliostar Metals Ltd. commenced exploration of its projects in Sonora. An initial 1,500 m drilling program has begun at La Lola, focusing in the up to 40 meters wide La Barra vein and its potential to depth. At Cumaro, will map and sample extensions to veins that have ore grade intercepts on the neighboring SilverCrest’s Picacho property. “Exploration at the Oso Negro project will focus on mapping and sampling outcropping veins that yielded samples up to 2,680 grams per tonne (g/t) silver and 100.5 g/t gold. These veins have never been drilled”.
  • Tocvan Ventures Corp. informed detailed mapping and sampling of key targets areas have taken place at its Pilar project in Sonora. The aim of the work is to advance these targets to drill ready status, for a phase II drill program. The Main Zone Extension comprises 800 m southeast of the Main Zone, with highly anomalous gold in soils and rock grab samples and an historic hole with a 13.5 m @ 5.6 gpt Au, 22 gpt Ag intercept. The 4-Trench zone is a 600 m trend with highly anomalous gold in soils and rock grab samples and an historic hole intercept of 7.5 m @ 3.3 gpt Au, 31 gpt Ag. The project has over 17,700 meters of historic core and RC drilling, with intercepts of up to 61 m @ 0.8 gpt Au; 16.5 m @ 53.5 gpt Au, 53 gpt Ag; 13 m @ 9.6 gpt Au; 9 m @ 10.2 gpt Au, 46 gpt Ag.
  • Monarca Minerals Inc. continues to advance the permitting process for drilling of the San Jose project in Chihuahua (near the USA border). Currently the company is in negotiations with the authorities of communal lands for their permit to proceed with drilling activities in their land.
  • Tarachi Gold Corp. started the second phase of underground drilling at the historic La Dura mine at its Tarachi project in Sonora. “In addition to the underground drilling at La Dura, a surface RC drill rig will be mobilized to the Jabali mineral concession in mid-March to test the 400m-long area between the La Dura mine and the artisanal workings at Zaragoza…”.

ON MINING

  • Endeavour Silver Corp. released its financial results for the Q4 and 2020 full-year. The company operates three mines in Mexico: Guanaceví in Durango, Bolañitos in Guanajuato and El Compas in Zacatecas. The company produced 3.5 M Oz Ag, 37,139 Oz Au (7.1 M Oz AgEq) at cash cost $5.55 per Oz Ag and at an all-in sustaining cost of $17.59 per Oz Ag, both net of gold credits. The year-end balance sheet was $61.1 M, with working capital at $70.4 M and a long term debt of $6.1 M.
  • Fresnillo PLC. Presented its financial results for 2020, a year during which it produced 53 M Oz Ag and 769.6 K Oz Au. At Fresnillo, cash cost stands at $5.9 and AISC at $12.92 per silver ounce; At Saucito, cash cost stands at $0.8 and AISC at $6.94 per silver ounce. At San Julián Veins (Chihuahua), cash cost stands at ($6.0) and AISC at $5.04 per silver ounce; At San Julián DOB (Chihuahua), cash cost stands at $7.0 and AISC at $8.85 per silver ounce; At Ciénega (Durango), cash cost stands at ($276.2) and AISC at $618.32 per gold ounce; At Herradura (Sonora), cash cost stands at $727.9 and AISC at $881.92 per gold ounce; Finally, at Noche Buena (Sonora), cash cost stands at $1,158.5 and AISC at $1,502.92 per gold ounce. Exploration expenses for the year were $107.3 M. Shafts at Fresnillo and Juanicipio are being bored to 1,000 meters of depth; commissioning of Juanicipio is expected for Q4 2021, with a forecasted yearly production of 11.7 M Oz Ag, 43.5 K Oz Au. “the longer-term prospects for gold are good, supported by the potential new mines at Rodeo and Orisyvo”. Cash position at the end of the year was US$1,070 M.
  • Great Panther Mining Ltd. reported consolidated financial results for 2020, including figures from its Topia (Durango) and Guanajuato Mine Complex operations in Mexico. During the period 50,868 tonnes were mined in Mexico, milling 49,498 tonnes @ 270 gpt AgEq. 

ON FINANCING

  • Zacatecas Silver Corp. announced its common shares have begun trading on the TSX Venture Exchange (Zacatecas Silver, Zacatecas).
  • One World Lithium Inc. closed its previously announced C$1.5 M non-brokered private placement with an oversubscription that brought the total in gross proceeds to C$2.25 M. The company granted incentive stock options to certain of its directors, officers, management and consultants (Salar del Diablo, Baja California).
  • Silver Tiger Metals Inc. closed it previously announced bought deal offering for gross proceeds of C$23 M. The underwriters were paid a 6% commission on the gross proceeds (El Tigre, Sonora).
  • Candelaria Mining Corp. granted incentive stock options to employees, directors and officers of the company for 1.02 M shares (Pinos, Guanajuato; Caballo Blanco, Veracruz).
  • Santacruz Silver Mining Ltd. announced a non-brokered private placement intended to raise up to C$12 M (Zimapan, Hidalgo).

ON RESOURCES AND DEVELOPMENT

  • Sonoro Gold Corp. reported on metallurgical studies realized at Cerro Caliche Sonora. Bottle roll tests were realized on sample materials from the Japoneses, Cuervos, El Colorado/Cabeza Blanca and Buena Suerte zones, resulting in 80.3% recoveries for gold and 27.2% for silver.
  • GR Silver Mining Ltd. reported high-grade results from one drill hole in the San Juan area at Plomosas, Sinaloa. The highlighted core-length intercept is 5.7 m @ 611 gpt Ag, 0.04 gpt Ag, 0.5% Pb, 1.7& Zn, 0.1% Cu (685 gpt AgEq), including 1.7 m @ 1,762 gpt Ag, 0.10 gpt Au, 1.3% Pb, 4.9% Zn, 0.2% Cu and 0.7 m @ 3,755 gpt Ag, 0.03 gpt Au, 2.5% Pb, 9.7% Zn, 0.5% Cu.  
  • Galore Resources Inc. announced the return of field work and the recent receipt of additional assays from five holes of the drill program executed at El Alamo during 2019. A loan from the CEO, Mike McMillan provided the necessary funds for logging and assaying of the 2019 core. Highlighted core length intervals comprise 21.20 m @ 0.69 gpt Au, including 1.20 m @ 8.89 gpt Au; 4 m @ 0.54 gpt Au; 10.21 m @ 1.14 gpt Au, including 1.10 m @ 4.70 gpt Au; 59.85 m @ 0.32 gpt Au, including 3.2 m @ 1.07 gpt Au.

ON DEALS AND CORPORATE ISSUES

  • Empress Royalty Corp. is in advanced discussions to acquire a US$5 M silver stream on production from Telson Mining Corp.’s Tahuehueto project in Durango. “The Stream is expected to be on 100% of the payable silver production from Tahuehueto for the first 1,250,000 payable ounces; thereafter, the percentage will step-down to 20% of the payable silver production”.
  • Orex Minerals Inc. entered into an agreement with Pan American Silver Corp. to further explore and develop the Sandra-Escobar Project, in Durango. “The Project is a consolidation of two groups of claims, each controlled by the two Joint Venture participants. Orex and Pan American own a 40% and 60% interest, respectively, in Empresa Minera Sandra-Escobar, S.A. de C.V. (the “Joint Venture Company”), the new joint venture company formed to hold the Project. Orex will be the initial operator of the Project”.
  • Bacanora Lithium PLC. informed the receipt of all relevant approvals and consents from the authorities in the People’s Republic of China and receipt of funds by Sonora Lithium Ltd.. These were conditions for the completion of the increased investment in Sonora Lithium by Ganfeng Lithium Co. Ltd., resulting in Ganfeng owning 50% of the share capital of Sonora Lithium (Sonora Lithium, Sonora).
  • First Majestic Silver Corp. submitted a request for arbitration to the International Centre for Settlement of Investment Disputes based on Chapter 11 of the North American Free Trades Agreement (NAFTA). The government of Mexico has refused to engage in negotiations to resolve the dispute. “The Company believes that the Government’s actions are contrary to the terms of the Advance Pricing Agreement, which established the methodology for determining PEM’s revenues and taxes for the 2010 to 2014 fiscal years, and which, according to the Company’s Mexican counsel remains valid in accordance with the Mexican Federal Tax Code unless and until it is nullified by a final instance Court. In addition, the Government of Mexico has refused to participate in the Mutual Agreement Procedures under three international double-taxation treaties signed by Mexico” (San Dimas, Durango).  
  • Silver One Resources Inc. completed the sale of its Mexican silver exploration projects to Silverton Metals Corp.. for $6 M as follows: $1.25 M in cash on closing, issue 4.37 M shares, $750 K in cash at 18 months, $500 K in cash at 24 months and a 1.5% NSR, of which 1% can be bought back by Silverton with a payment of US$500 K for each of the properties (see below).
  • Silverton Metals Corp. (formerly Plymouth Realty Capital Corp.) and Silver One Resources Inc. announced that Silverton has completed its previously announced qualifying transaction with the acquisition of Silver One’s Peñasco Quemado (Sonora), La Frazada (Nayarit) and Pluton (Durango) projects.

ON SOCIAL RESPONSIBILITY

  • Peñoles and Fresnillo PLC informed on actions on biodiversity conservation activities at each of its operations in Mexico.
  • The Ethisphere Institute released a list of 135 companies that have ethics as one of its key directives in the world, which includes two Mexican companies: Grupo Bimbo and Fresnillo, with the latter being one of only three companies from the mining industry.
  • First Majestic Silver Corp. received the 2021 Socially Responsible Business Distinction Award (Reconocimiento de Empresa Socialmente Responsable) granted by the Mexican Centre for Philantropy and the Alliance for Corporate Social Responsibility. The awards were for its three operating mines: San Dimas (Durango), Santa Elena (Sonora) and La Encantada (Coahuila).

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

On the image below:  Ricardo Ramonett checking epithermal low sulfidation quartz veining on andesitic tuffs in Sinaloa. Picture by Jorge Cirett.

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

By Miguel A Heredia

During the fourth week of the year (February 22th to February 28th, 2021), at least 39 press releases were announced by companies working in Mexico and 7 news published by the media, with eleven announcing financial rounds, nine reporting  on resources and development of their mine operations, seven disclosing deals and corporate issues, six commenting on Mexican issues, five informing on exploration results, five discussing social issues, and three communicating production and financial results.  ON MEXICO ISSUES, Mining and Steel companies resumed activities after power outage. Mining is on alert for the possibility that the Mexican Congress approves the initiative of President Andrés Manuel López Obrador to modify the Electricity Industry Law and favor Federal Electricity Commission (CFE). Los Gatos Silver announced restoration of full grid power at its Cerro Los Gatos mine in Chihuahua. According to the Fraser Institute, Chile, Peru, and Mexico have lost global appeal for mining investment. According to Fresnillo plc, half of the electricity used by the La Herradura mine in Sonora comes from clean energy. The president of Mexico, Andrés Manuel López Obrador, has remained firm in his decision not to grant new mining concessions, a measure that has been described as one of the main challenges for the sector.  ON EXPLORATION, In Sonora, Aztec Minerals and its JV partner Kootenay commenced 2021 exploration program at its Cervantes project, and SilverCrest released drill results from its Picacho project. In Nayarit, Xali delineated new drill targets at its El Dorado project. In Jalisco, GoGold released drill results from 12 holes collared at its Los Ricos North project.  ON MINING, Capstone informed that it is on track for ramp-up to 3,780 tonnes per day at its Cozamine mine in Zacatecas by end of Q1, 2021, and reported Q4 and full-year 2020 production and financial results. Gold Resource reported full year 2020 production and financial results from its Don David mine in Oaxaca. Torex announced Q4, 2020 and full year 2020 production and financial results from its Limon-Los Guajes mine complex in Guerrero.  ON FINANCING, Carlyle granted stock options to directors and consultants (Cecilia project, Sonora). Coeur announced its intention to offer USD $350M of senior notes due 2029 (Palmarejo mine, Chihuahua). Capstone closed a USD $150M silver stream agreement with Wheaton Precious Metals (Cozamine mine, Zacatecas). Discovery Metals announced that an aggregate of 31,140,000 common share purchase warrants were exercised (Cordero project, Chihuahua). Fabled announced an exercise of warrants for gross proceeds of $4,150,000 (Santa Maria property, Chihuahua). Orla completed layback agreement with Fresnillo on its Camino Rojo project in Zacatecas. Santacruz, through its subsidiary Carrizal Mining, entered into a definitive agreement with Minera Cedros, a subsidiary of Industrias Peñoles, to acquire the Zimapan mine in Hidalgo. SilverCrest completed its previously announced bought deal offering for gross proceeds of USD $138,069,000 (Las Chispas project, Sonora). Telson executed a LOI with Accendo Banco to provide financing up to USD $25M to complete the construction of its Tahuehueto mine in Durango, and also granted stock options to certain directors, officers, and insiders.  ON RESOURCES AND DEVELOPMENT, Alamos Gold reported minerals reserves and resources for the year-ended 2020 (Mulatos mine, Sonora). Aloro informed that Alamos Gold has initiated its field exploration program on its Los Venados project in Sonora. Chesapeake presented its 2021 work program at its Metates project in Durango. Excellon released results from underground expansion and exploration drilling from its Platosa property in Durango. Fabled released results from the third drill hole collared at its Santa Maria property in Chihuahua. GR Silver announced that it is conducting a ground geophysics program at its San Marcial project in Sinaloa, incorporating magnetometry and 3D IP. Orogen provided an update on its Ermitaño property in Sonora. Prime announced that a fifth core drill rig has been added at Los Reyes project, Sinaloa. Xtierra released drill results from two holes collared at the Victor Vein at its Bilbao deposit in Zacatecas.  ON DEALS AND CORPORATE ISSUES, Barksdale announced the appointment of its Corporate Secretary as well as the grant of stock options to directors, employees and consultants. Colibri signed an option agreement with Bimsa to acquire 100% interest in the Diamante gold project in Sonora. Equinox announced that shareholders and optionholders of Premier approved the acquisition (Mercedes mine, Sonora). GR Silver announced the appointment of its VP Corporate Comminications (Plomosas property, Sinaloa). Autlan announced the appointment of its CEO (Molango mine, Hidalgo). US Antimony announced that trading of its common shares at the New York Stock Exchange (NYSE) has been halted. VanGold announced the appointment of Ramón Dávila to join to its Advisory Board (Pinguico property, Guanajuato).   ON SOCIAL RESPONSIBILITY, Fresnillo plc through its San Julian mine reinforced sanitary measures with campaign in Guadalupe and Calvo, Chihuahua. Minera Media Luna (Torex Gold) and the Universidad de Guerrero signed an environmental monitoring agreement (Limon-Guajes mine complex, Guerrero). Minera Peñasquito (Newmont) donated ventilators to the Medical Specialties Unit (UNEME) in Zacatecas. Mina Santa Elena (First Majestic) donated rapid COVID 19 antigen tests and face masks to municipalities of Baviácora, Aconchi, San Felipe de Jesús, Huépac, Banámichi, and Arizpe in Sonora.

ON MEXICO ISSUES

  • Mining and Steel companies operating in Mexico resumed activities after power outage. The companies normalized their operations after the energy deficit caused by the polar wave in Texas affected their operations. Local operations in the silver, gold, coal and iron mines were suspended or restricted after the US state halting natural gas exports amid a historic winter storm. The interruption of natural gas shipments has generated calls for Mexico to invest in gas storage and diversify its energy matrix.
  • Mining is on alert for the possibility that the Mexican Congress approves the initiative of President Andrés Manuel López Obrador (AMLO) to modify the Electricity Industry Law and favor Federal Electricity Commission (CFE). AMLO said that he will seek to get his proposal approved without changing a single comma. The government last week began a campaign to emphasize the alleged damage that the actions of the IP have brought to the company headed by Manuel Bartlett. Mining is one of the industries that will be affected. Simply the companies that invested in self-supply projects managed to lower the cost of the fluid from 12 or 13 cents of a kilowatt (kw) / hour to 6.5 cents. Those that depend on CFE pay between 8 and 9 cents per kw / hour, far from the level of their competitors in Peru or Chile, which are at 6 cents, let alone those in the US at 4 cents and Canada 2 cents.
  • Los Gatos Silver Inc., announced restoration of full grid power at its Cerro Los Gatos mine in Chihuahua. Given the expedited restoration of full grid power, the outage has had minimal impact on the Company’s mining and processing activities.
  • According to the Fraser Institute, Chile, Peru, and Mexico have lost global appeal for mining investment. In Mexico, concerns about the policies of President Andrés Manuel López Obrador explain the reason for his fall from 4 positions in attractiveness to invest, to place 42. In perception of its policies, it was located in a weak 61st place after descending 10 notches. “The Federal Government is hostile towards the mining industry and is not issuing new permits,” said a company president, echoing concerns the industry has recently expressed.
  • According to Fresnillo plc, half of the electricity used by the La Herradura mine in Sonora comes from clean energy such as wind and solar, with which, through its strategy of sustainability reiterates its commitment to caring for the environment. It has allowed the saving of 4,051 Mhw, which represents an estimated reduction of 2 thousand 358 tons of CO2e. The company reports that for a decade it has invested in the use of renewable energy sources in order to make its processes cleaner and, with it, to be able, in the medium term, to achieve that 75% of its electricity consumption comes from of wind energy.
  • The president of Mexico, Andrés Manuel López Obrador (AMLO), has remained firm in his decision not to grant new mining concessions, a measure that has been described as one of the main challenges for the sector.  AMLO has repeatedly said that his administration will not award new concessions, as his predecessors would have given parts of the country to mining companies too easily. While it may be difficult to obtain new concessions, mining companies can still acquire properties in the secondary market, since there are concession holders who are willing to sell if necessary.

ON EXPLORATION

  • Aztec Minerals Corp.,  and its JV partner Kootenay Silver Inc., commenced their 2021 exploration program at its Cervantes project in Sonora. The plan is to conduct a +500 soil samples to cover 518 hectares with 100m by 100m spaced samples aimed at extending previous soils grid and covering the Estrella and California North targets to the western, northern, and eastern limits of the property. Detailed lithologic, alteration, structural mapping and rock chip sampling will proceed along with the soil sampling program.
  • SilverCrest Metals Inc., released drill results from its Picacho project in Sonora. The best intercepts from initial drilling include hole PI-20-006 with 40.49 g/t Au, and 260 g/t Ag (3,297 g/t AgEq) over a true width (TW) of 7.25m; and hole PI-20-001 with 8.5 g/t Au and 51 g/t Ag (689 g/t AgEq) over a TW of 16.4m. To date, 42 drill holes have been collared at the Picachos property, with 21 intercepting an average of 4.1m with grades of 8.14 g/t Au and 50 g/t Ag (660 g/t AgEq).
  • Xali Gold Corp., delineated new drill targets at its El Dorado project in Nayarit, through the development of a new 3D geological model. The 3D model visualized high grade mineralization occurring in multiple parallel veins. Drill permits are in progress and are expected to take 3-4 months to get them approved.  Drilling is planned to test potential lateral extensions to the high grade zone.
  • GoGold Resources Inc., released drill results from 12 holes collared at its Los Ricos North project. Significant drill intercepts were encountered in hole LRGF-20-025 (Salomon area) with 0.26 g/t Au, 95 g/t Ag, (1.53 g/t AuEq or 115 g/t AgEq) over 70.5m, including 0.59 g/t Au and 251 g/t Ag (3.94 g/t AuEq or 295 g/t AgEq) over 20.1m, including 0.99 g/t Au and 404 g/t Ag (6.37 g/t AuEq or 478 g/t AgEq) over 10.1m, hole  LRGF-20-025 (Guitarrillas area) with 0.35 g/t Au and 107 g/t Ag (1.77 g/t AuEq or 133 g/t AgEq) over 18.3m, including 2.17 g/t Au and 566 g/t Ag (9.71 g/t AuEq or 728 g/t AgEq) over 2m; hole LRGF-21-033 (Salomon area) with 0.59 g/t Au and 116 g/t Ag (2.14 g/t AuEq or 160 g/t AgEq) over 33.9m, including 1.25 g/t Au and 433 g/t Ag (7.02 g/t AuEq or 527 g/t AgEq) over 3m; hole LRGF-21-033 (Guitarrillas area) with 1.94 g/t Au and 275 g/t Ag (5.6 g/t AuEq or 420 g/t AgEq) over 5.8m, including 4.14 g/t Au and 544 g/t Ag (11.39 g/t AuEq or 854 g/t AgEq) over 2.1m; and hole LRGF-21-033 (Los Chivos area) with 2 g/t Au and 486 g/t Ag (8.48 g/t AuEq or 636 g/t AgEq) over 8.8m, including 7.36 g/t Au and 1,693 g/t Ag (29.94 g/t AuEq or 2,245 g/t AgEq) over 2.3m.

ON MINING

  • Capstone Mining Corp., informed that it is on track for ramp-up to 3,780 tonnes per day at its Cozamine mine in Zacatecas by end of Q1, 2021.  During the period Q4, 2020, Capstone produced 10.3M Lb Cu at a cash cost of USD $0.63 per Lb Cu produced, and a total of 37.9M Lb in 2020 at a cash cost of USD $0.69 per Lb Cu produced.
  • Gold Resource Corporation reported full year 2020 production and financial results from its Don David mine in Oaxaca.  The company produced 20,473 Oz Au, 1.19M Oz Ag, 3.57M Lb Cu, 17.3M Lb Pb, and 44.12M Lb Zn in 2020, at a cash and AISC of USD $784 and USD $1,365 respectively per Oz AuEq, for a net income of USD $4.4M with revenue of USD $90.7M and mine gross profit of USD $12.5M.
  • Torex Gold Resources Inc., announced Q4, 2020 and full year 2020 production and financial results from its Limon-Los Guajes mine complex in Guerrero.  Torex produced in Q4, 2020, a total of 130,649 Oz Au at a cash and AISC of USD$579 and USD $886 per Oz Au produced, and sold 133,063 Oz Au for a net income USD $91.9M an adjusted EBITDA of USD $158.5M, cash flow from operations of USD $137.1M, and a free cash flow of USD $70.3M.  For the full year 2020, Torex reported a production of 430,484 Oz Au, at a cash an AISC of USD $672 and USD $924 per OZ Au produced respectively, with a sale of 437,310 Oz Au at a realized Au price of USD $1,771 per Oz, for revenue of USD $789M, a net income of USD $109M, an adjusted EBITDA of USD $431M, and an operating cash flow of USD $342M. Net cash for the year 2020 was USD $161.6M.

ON FINANCING

  • Carlyle Commodities Corp., granted stock options to directors and consultants for the purchase of 2.79M shares. The options are exercisable for a period of 5 years at an exercise price of $0.14 per share (Cecilia project, Sonora).
  • Coeur Mining Inc., announced its intention to offer USD $350M of senior notes due 2029. Net proceeds from the Offering will be used to pay the purchase price and tender premium for up to all USD $230M aggregate principal amount of its 5.875% senior notes due 2024, to pay the redemption price to redeem any of the 2024 notes that are not so tendered in the concurrent tender offer and to pay the fees and expenses in connection with the offering, the concurrent tender offer and any redemption of the 2024 notes. To the extent that the company has excess proceeds from the offering, the company intends to use such excess amounts for general corporate purposes (Palmarejo mine, Chihuahua). 
  • Capstone Mining Corp., closed a USD $150M silver stream agreement with Wheaton Precious Metals.  “All conditions to complete the Stream Agreement have been fulfilled and Capstone has received USD $150M from Wheaton for 50% of the silver productions until 10M Oz Ag have been delivered, thereafter dropping to 33% of silver production, for the life of mine from the Company’s Cozamin Mine in Zacatecas, Mexico. Wheaton will make ongoing payments equal to 10% of the spot silver price at the time of delivery for each ounce delivered to them”. 
  • Discovery Metals Corp., announced that an aggregate of 31,140,000 common share purchase warrants were exercised at a price of CAD $1.0 for gross proceeds of approximately CAD $31M. The company´s current cash balance has increased to approximately CAD $98M (Cordero project, Chihuahua)
  • Fabled Silver Gold Corp., announced an exercise of warrants for gross proceeds of $4,150,000. Following the exercise of the warrants, Fabled continues to have a total of 50,500,000 share purchase warrants outstanding that were previously issued under the financing. The Company has 185,251,903 total shares issued and outstanding as at February 19, 2021 (Santa Maria property, Chihuahua).   
  • Orla Mining Ltd., completed layback agreement with Fresnillo on its Camino Rojo project in Zacatecas. Orla will pay Fresnillo a total cash consideration of USD $62.8M through staged payments. The first payment of USD $25M was due to Fresnillo on closing of the transaction.
  • Santacruz Silver Mining Ltd., through its subsidiary Carrizal Mining SA de CV,   entered into a definitive agreement with Minera Cedros, a subsidiary of Industrias Peñoles SAB de CV, to acquire the Zimapan mine in Hidalgo and related assets, for a total consideration of USD $20M plus a VAT of USD $3.2M.  Assets to be acquired include a processing facility with a capacity of 75K dry tonnes per month, and Zn, Pb, Cu circuits; surface and underground infrastructure required for day to date operations; and 34 mining concessions totalling 5,139 hectares. Santacruz also entered into a loan facility with Trafigura México SA de CV in the amount of USD $17.6M from which USD $15M will be advanced to Peñoles on behalf of Carrizal on closing of the acquisition. The remains balance, USD $8.2M, is being financed by Minera Cedros. The USD $2.6M balance of the Trafigura loan represents the refinancing of existing debt owing to Trafigura by Carrizal and an affiliate.
  • SilverCrest Metals Inc., completed its previously announced bought deal offering for gross proceeds of USD $138,069,000. Gross proceeds will be used to expand the Las Chispas resources and reserves, through further drilling, to optimize the mine and processing plant design, to explore regional targets, and for general working capital purposes.  
  • Telson Mining Corporation executed a LOI with Accendo Banco SA de CV to provide financing up to USD $25M to complete the construction of its Tahuehueto mine in Durango. Telson also granted stock options to certain directors, officers and insiders of up to an aggregate 4.7M shares in the capital stock of the Company.  The options are exercisable on or before February 25, 2026 at a price of $0.30 per share, and the Company has also re-priced 1,873,333 stock options originally granted as to; 1,423,333 exercisable at $0.71 till November 10, 2022, 400,000 exercisable at $0.72 till April 16, 2023 and 50,000 exercisable at $0.71 till April 23, 2023.

ON RESOURCES AND DEVELOPMENT

  • Alamos Gold Inc., reported minerals reserves and resources for the year-ended 2020. Proven and probable reserves at Mulatos mine in Sonora are 33,935,000 tons of 1.24 g/t Au for a total of 1.35M Oz Au. Measured + indicated resources are 74,193.000 tonnes of 1.09 g/t Au for a total of 2.6M Oz Au, and Inferred resources are 9,291,000 tonnes of 0.91 g/t Au for a total of 271K Oz Au. Mineral reserves are exclusive of mineral resources.
  • Aloro Mining Corp., informed that Alamos Gold has initiated its field exploration program on its Los Venados project in Sonora. Focus of the program is the south portion of the property, adjacent to the Mulatos open pit.
  • Chesapeake Gold Corp., informed over its 2021 work program at its Metates project in Durango. This program will consists of approximately 2,500m drilling to recover 10 tonnes of PQ size material to conduct on 40 test columns metallurgical testwork focused on a new heap leach option, to determine the impacts of size, regent strengths, and ore types to determine the optimum oxidation and precious metal leaching parameters. In parallel, Chesapeake will update the previous PSF and add a scoping study for the sulphide heap leach to demonstrate the potential upside of this option.
  • Excellon Resources Inc., released results from underground expansion and exploration drilling from its Platosa property in Durango. Significant drill intercepts were encountered at the Rodilla, NE-1S, and Pierna Mantos with diamond drilling from underground in hole EX20UG491 at the Rodilla Area with 1,023 g/t Ag, 9.3% Pb, 4.5% Zn, and 0.1 g/t Au (1,422 g/t AgEq) over 8.9m, including 3,499 g/t Ag, 29.7% Pb, 10.3% Zn, and 0.1 g/t Au (4,623 g/t AgEq) over 2.2m; hole EX20UG493 at NE-1S Area with 673 g/t Ag, 6.7% Pb, and 7.1% Zn (1,092 g/t AgEq) over 2.4m;  hole EX20UG506 at 623 Area with 1,258 g/t Ag, 7.5% Pb, 2.4% Zn, and 0.1 g/t Au (1,258 g/t AgEq) over 1.6m; and hole EX21UG515 at Gap Area with 721 g/t Ag, 4.1% Pb, and 4.5% Zn (984 g/t AgEq) over 4m. Drilling continues to define and discover new mineralization in the gap Area with 300m of potential mineralized strike to be explored.
  • Fabled Silver Gold Corp., released results from the third drill hole collared at its Santa Maria property in Chihuahua. This third hole is part of an ongoing 8,000m drill program and intersected 85 g/t Ag and 0.49 g/t Au over 12.5m, including 214 g/t Ag and 1.08 g/t Au over 1.8m. “The 12.50 meter intersection has clearly defined a footwall and hanging wall structure with corresponding elevated silver values up to over 7 ounces of silver and remains open at depth. More importantly, the structure is very conformable and intersected exactly where predicted, which bodes very well for the expansion of Santa Maria and increasing the present NI 43-101 resources on the property with only 3 drill holes drilled to date.”
  • GR Silver Mining Ltd., announced that it is conducting a ground geophysics program at its San Marcial project in Sinaloa, incorporating magnetometry and 3D IP. The survey will initially focus on the resource area to characterize the known Ag-Pb-Zn mineralization therein, which hosts the NI 43-101 resource.
  • Orogen Royalties Inc., provided an update on its Ermitaño property in Sonora, currently under control of First Majestic Silver Corp., where Orogen holds a 2% NSR. Last January, First majestic announced a USD $42.1M investment for the development of Ermitaño project to support the construction of an underground mine infrastructure that began last year. First majestic plans to release a PEA by the end of March, and is currently conducting hydrological studies and geotechnical drilling for an upcoming PFS that is expected to be released in H2, 2021.  In addition, the company also plans to extract 30K to 60K tonnes of material for metallurgical testwork.
  • Prime Mining Corp., announced that a fifth core drill rig has been added at its Los Reyes project, Sinaloa. Prime commenced a 15,000m drill program in December 2020 and only ten has been completed to date. The plan is to complete the phase 1 drilling before onset of the rainy season in mid-August, complete a new geological resource model during the rainy season hiatus and then initiate an aggressive Phase 2 drilling program in Q4 2021.
  • Xtierra Inc., released results from two holes collared at the Victor Vein, located adjacent to and west of its Bilbao deposit in Zacatecas. Hole X6B intersected 108 g/t Ag, 0.31% Pb, 0.08% Zn, and 0.03% Cu (120 g/t AgEq) over a true width (TW) of 1.148m, and hole X7B intersected 61 g/t Ag, 5.5% Pb, 4.41% Zn, and 0.08% Cu (336 g/t AgEq) over a TW of 9.37m, including 82 g/t Ag, 6.8% Pb, 6.9% Zn, and 0.29% Cu over a TW of 0.61m, including 63 g/t Ag, 6% Pb, 6.4% Zn, and 0.08% Cu (412 g/t AgEq) over a TW of 0.36m, including 119 g/t Ag, 13.6% Pb, 11.4% Zn, and 0.01% Cu (795 g/t AgEq) over a TW of 0.70m, and including 107 g/t Ag, 8.2% Pb, 6.9% Zn, and 0.54% Cu (566 g/t AgEq) over a TW of 0.50m.

ON DEALS AND CORPORATE ISSUES

  • Barksdale Resources Corp., announced the appointment of its Corporate Secretary as well as the grant of stock options to directors, employees and consultants (San Javier project, Sonora).
  • Colibri Resources Corporation signed an option agreement with Bimsa Minera SA de CV to acquire 100% interest in the Diamante gold project in Sonora.   The Diamante property comprises two 1,057 hectares in two properties that borders El Mezquite project immediately to the west, and about 1.6km northwest of Colibri’s 1,130-ha Jackie project. To earn an initial 50%, Colibri has to pay USD $100K and incur the expense of completing 2,000m of drilling over the course up to two years, and also will be responsible for all exploration cost while preparing for such drilling program. In addition, Colibri will pay ½ of the property tax and security costs during this period.  Upon completion of its 50% earn-in, Colibri will become equal joint venture partners with Bimsa Minera and then Colibri will have an exclusive period of six months to purchase the remaining 50% of the joint venture by paying Bimsa Minera either of: i) USD $2.1M or ii) USD $1.4M and the grant of a 2% net smelter royalty (NSR) on the project.
  • Equinox Gold Corp., announced that shareholders and optionholders of Premier Gold Mines Limited approved the acquisition by Equinox Gold. “On closing of the Transaction, Premier shareholders will receive 0.1967 of an Equinox Gold share for each Premier share held, such that existing Equinox Gold and Premier shareholders will own approximately 84% and 16% of Equinox Gold, respectively, on an issued share basis. The Transaction is expected to close in March subject to certain regulatory approvals and other customary closing conditions”.  By approving the Transaction, Premier securityholders also approved the spin-out to Equinox Gold and Premier shareholders shares of a newly created US-focused gold production and development company to be called i-80 Gold Corp. (Mercedes mine, Sonora).
  • GR Silver Mining Ltd., announced the appointment of its VP Corporate Comminications (Plomosas property, Sinaloa).   
  • Compañía Minera Autlan SAB de CV announced the appointment of its CEO (Molango mine, Hidalgo).   
  • US Antimony Corporation announced that trading of its common shares at the New York Stock Exchange (NYSE) has been halted since before the opening of trading on Wednesday, February 17, 2021 as a consequence of selling common shares in a manner that violated Sections 301 and 713 of the Company Guide. “The violations relate to two non-underwritten transactions involving the sale of an aggregate of26,290,000 shares of common stock at a discount to the market price at the time of each transaction, with the first transaction, which closed on February 3, 2021, involving the sale of 15,300,000 shares of common stock at a purchase price of $0.70 per share, and with the second transaction, which closed on February 16, 2021, involving the sale of 10,990,000 shares of common stock at a purchase price of $1.30 per share”. The Company has been advised by NYSE Regulation that the Company’s common stock will resume trading on the NYSE American following the issuance of this press release and the filing of a Current Report on Form 8-K disclosing the receipt of the Letter, which the Company anticipates will be prior to the open of trading on Friday, February 19, 2021.
  • VanGold Mining Corp., announced the appointment of Ramón Dávila to join to its Advisory Board (Pinguico property, Guanajuato).  

ON SOCIAL RESPONSIBILITY

  • Fresnillo plc reinforced sanitary measures with campaign in Guadalupe and Calvo, Chihuahua.  Personnel from the San Julian mine delivered five thousand washable face masks through a caravan of more than 25 volunteers. The municipality of Guadalupe y Calvo has received different donations of face masks from the mining company that operates San Julian mine, adding more than 30 thousand items delivered. These surgical cloth mouth covers were manufactured by the “Yerbitas” community sewing workshop.
  • Minera Media Luna (Torex Gold) and the Universidad de Guerrero signed an environmental monitoring agreement  to encourages the inhabitants of Nuevo Balsas, Atzcala and Mezcala, communities located around the El Caracol dam and the Balsas rivers and San Juan de Cocula, to get involved in the Participatory Environmental Audit. “During the protocol ceremony, it was reported that 42 residents of Nuevo Balsas have participated in the taking of water and sediment samples, another 260 fishermen from the same town, Atzcala and Mezcala were surveyed for the evaluation of the fishing effort”. (Limon-Guajes mine complex. Guerrero).
  • Minera Peñasquito (Newmont) donated ventilators to the Medical Specialties Unit (UNEME) in Zacatecas. This UNEME has been converted into a COVID-19 Hospital for services of health, which receives people affected by SARS -Cov 2 from the State of Zacatecas, who require hospitalization and who are not beneficiaries of other social security systems. With this donation, Newmont reaffirms its commitment to Zacatecas in support of the most vulnerable population in the state and joins the efforts of health authorities in their fight against this pandemic. Newmont has delivered in Zacatecas more than MXP $28M, in hospital supplies and food packages.
  • Mina Santa Elena (First Majestic) donated rapid COVID 19 antigen tests and face masks to municipalities of Baviácora, Aconchi, San Felipe de Jesús, Huépac, Banámichi, and Arizpe in Sonora, with the aim of detecting suspicious cases and mitigating risks of contagion.

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 quartz hydrothermal breccia displaying cockade texture and a quartz vein displaying boiling texture in an intermediate sulphidation epithermal system in a prospect in Chihuahua, Mexico.  Photo by Miguel A Heredia., Mexico.

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

By Jorge Cirett

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

ON MEXICO ISSUES

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

ON EXPLORATION

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

ON MINING

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

ON FINANCING

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

ON RESOURCES AND DEVELOPMENT

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

ON DEALS AND CORPORATE ISSUES

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

ON SOCIAL RESPONSIBILITY

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

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

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

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

By Jorge Cirett

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

ON MEXICO ISSUES

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

ON EXPLORATION

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

ON MINING

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

ON FINANCING

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

ON RESOURCES AND DEVELOPMENT

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

ON DEALS AND CORPORATE ISSUES

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

ON SOCIAL RESPONSIBILITY

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

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

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

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

Stibiconite crystals

By Miguel A Heredia

During the fourth week of the year (January 25th to January 31st, 2021), at least 43 press releases were announced by companies working in Mexico and 9 news published by the media, with twelve informing on exploration results, ten disclosing deals and corporate issues, nine announcing financial rounds, seven reporting on resources and development of their mine operations, six commenting on Mexican issues, five  communicating production and financial results, and three discussing social issues.  ON MEXICO ISSUES, Odyssey has been notified that the First Memorial filed in September 2020 in its pending North American Free Trade Agreement (NAFTA) case against Mexico has now been published by the International Centre for Settlement of Investment Disputes (ICSID). Mexico is the mining market with the highest tax burden compared to Canada, Chile, Peru, and the United States.  Fernando Alanís, president of the Mining Chamber of Mexico (CAMIMEX) declared that Mexico captured USD $2.5 B of investment in the mining sector in 2020, its lowest level in the last 13 years.  Ministry of Economic Development and Labor of Guerrero State seeks to recover jobs at Minera Media Luna (Torex Gold). The Mining Chamber of Mexico (CAMIMEX) presented its first Sustainability Report 2020. Businessmen from the mining and energy sector joined in the proposal to put a limit on the participation of workers in company profits (PTU) and to link them to productivity. ON EXPLORATION, In Sonora, Carlyle and Riverside announced the start of its first drilling program by early February at its Cecilia project and Aztec Minerals and its JV partner Kootenay announced plans for a two-phase exploration program at its Cervantes project. In Chihuahua, Mammoth commenced its 2021 field exploration program at its Tenoriba project, Consolidated Zinc reported exploration results from Potrero and Don Lucas targets, and Golden Minerals discovered new vein at its Yoquivo project. In Sinaloa, Vizsla released drill results from eighth holes collared at the Papayo prospect at its Panuco project, and Mithril provided an update on the exploration activities performed during the period Q4, 2020 at its Copalquin project.  In Jalisco, GoGold announced a new discovery at El Orito in its Los Ricos North project. In Veracruz, Azucar Minerals provided an update on drilling activities at its El Cobre project.  ON MINING, Consolidated Zinc reported Q4, 2020 production results from its Plomosas mine in Chihuahua. Endeavour reported 2021 production and cost guidance for their Mexican operations. Fresnillo plc reported Q4, 2020 from their Mexican operations. Gold Resource announced Q4, and full year 2020 production results from its Oaxaca Mining Unit in Oaxaca. Mag Silver reported Q4, 2020 production results from its Juanicipio project in Zacatecas.  ON FINANCING, Argonaut announced a $23M bought-deal public offering (El Castillo mine, Durango). VanGold increased its previously announced non-brokered private placement financing to $14.55M (El Pinguico project, Guanajuato).  Americas Gold and Silver closed its previously announced bought deal financing for aggregate gross proceeds of CAD $33.9M (Cosala mine, Sinaloa). Gainey announced that it has arranged a non brokered private placement for gross proceeds of up to CAD $500K (El Colomo, Nayarit). Mithril raised A $5M through a share placement (Copalquin project, Durango).  Elementals Royalties announced that its common shares are now eligible for electronic clearing and settlement (Mercedes mine, Sonora). Gold Resource declared January 2021 monthly dividend (Oaxaca Mining Unit, Oaxaca). Ridgestone closed the remaining tranche of its previously announced non-broken private placement for gross proceeds of $695K (Rebeico project, Sonora). ON RESOURCES AND DEVELOPMENT, Fabled presented initial diamond drill results from its Santa Maria project in Chihuahua. Capstone announced an updated technical report for its Cozamin mine in Zacatecas. Comet provided an updated Q4, 2020 activities report (Santa Teresa project, Baja California).  Oroco reported significant 3D IP survey results at its Santo Tomas project in Sinaloa. VanGold commenced a 12-14 drill holes program at its Pinguico project in Guanajuato. Minera Alamos provided a construction update at its Santana project in Sonora.   Great Panther announced an update on exploration strategy and programs for 2021 (Topia mine, Durango).  ON DEALS AND CORPORATE ISSUES, Mexican Gold engaged JDS Energy & Mining Inc., for a PEA at its Las Minas project in Veracruz. Canuc doubled its land position at San Javier project in Sonora. Magna Gold appointed its new CFO (San Francisco mine, Sonora). Defiance Silver entered into an option agreement to double its land position at its Tepal project in Michoacan. Vizsla announced strengthening of its senior management team and board (Panuco project, Sinaloa). First Majestic responded to market activity (San Dimas property, Durango). Mexican Gold appointed two new members as technical advisors (Las Minas project, Veracruz). Discovery Metals named to the 2021 OTCQX Best 50 (Cordero project, Chihuahua). Gainey provided an update on its Mexican projects and corporate activities (El Colomo project, Nayarit). Orex announced board changes and a grant of options (Sandra project, Durango). Magna Gold provided a letter to all of its shareholders in which it explained the strategy used to grow the company through strategic acquisitions and targeted exploration to evolve from a junior exploration company to an intermediate gold producer in Mexico (San Francisco mine, Sonora).  ON SOCIAL RESPONSIBILITY, Fresnillo plc strengthens education in times of pandemic. Peñoles reaffirms its commitment to promoting education through the implementation of academic programs that seek to develop skills and tools so that children and young people in Mexico aspire to a better future. The companies Autlán, Grupo México, Industrias Peñoles, Newmont-Peñasquito, Fresnillo plc and Coeur Mining participate in water management projects that were highlighted by the Mexican Mining Chamber (CAMIMEX) in its 2020 sustainability report.

ON MEXICO ISSUES

  • Odyssey Marine Exploration Inc., has been notified that the First Memorial filed in September 2020 in its pending North American Free Trade Agreement (NAFTA) case against Mexico has now been published by the International Centre for Settlement of Investment Disputes (ICSID). The $2.3 billion claim against Mexico under NAFTA relates to the unlawful denial of the environmental permit for subsidiary Exploraciones Oceanicas’ (ExO’s) offshore phosphate project.
  • Mexico is the mining market with the highest tax burden compared to Canada, Chile, Peru, and the United States, the main competing countries on the continent in terms of mining, according to the Mexican Mining Chamber (CAMIMEX). Mining faces heavy tax burden making the sector less competitive. 
  • Fernando Alanís, president of the Mining Chamber of Mexico (CAMIMEX) declared that Mexico captured USD $2.5 B of investment in the mining sector in 2020, its lowest level in the last 13 years. Mexico is a mining power globally. In 2019 it ranked among the top 10 positions in the world production of 17 minerals, including first in silver, second in fluorite, third in celestite and wollastonite, sixth in zinc, seventh in salt, eighth copper and ninth in gold, among others. Mining stands out as an activity that generates jobs, investments, foreign exchange, infrastructure, regional value chains, local consumption and contribution to social development. In 2019, the mining-metallurgical Gross Domestic Product (GDP) represented 8.1% of the industrial GDP and 2.3% of the national GDP.
  • Ministry of Economic Development and Labor of Guerrero state seeks to recover jobs at Minera Media Luna. The investment of USD $500M in the mining activity by Torex Gold in the municipality of Cocula, the creation of commercialization spaces through virtual stores on the Mercado Libre platform and the linking of credit institutions with small and Guerrerenses micro companies are some of the strategies that are implemented to recover more than 15 thousand formal jobs that were lost during 2020 in Guerrero.
  • The Mining Chamber of Mexico (CAMIMEX) presented its first Sustainability Report 2020. The publication is divided into three chapters, corresponding to good practices in mining in the social, environmental and economic spheres. Highlighted that the companies affiliated to CAMIMEX represent 90% of the value of the industry, and have a presence in 696 communities, in 24 states of the Mexican Republic. Regarding the regulations to which mining projects are subject to operate, mentioned a total of 1,077 rules, laws, norms, guidelines and agreements, in matters of labor competition, health, environment, fiscal, agrarian, etc. regarding some of the taxes paid by the mining, Fernando Alanís indicated that in 2019 a total of MXP $39,017M was contributed, for concepts such as ISR, surface rights, and new rights, and that the amount rose to MXP $ 131,016M in a period of four years. In 2019, mining companies invested MXP $ 1,056M in social development (in addition to the MXP $3,496M raised that year for the Mining Fund), managing to directly benefit more than one and a half million people.
  • Businessmen from the mining and energy sector joined in the proposal to put a limit on the participation of workers in company profits (PTU) and to link them to productivity. Fernando Alanís Ortega, president of the Mining Chamber of Mexico, highlighted that “continuing to manage PTU as a percentage of profit is essentially to consider it as if it would be an additional tax burden and it reduces our competitiveness. ”He proposed“to find how to relate the PTU to productivity factors”, so that it is the result of the effort and not of metal prices, as is currently the case.

ON EXPLORATION

  • Carlyle Commodities Corp. and Riverside Resources Inc., announced the start of its first drilling program by early February at its Cecilia project. Riverside as operator of the JV has designed six holes to test the un-drilled San Jose structure on the Cerro Magallanes where rock sampling returned up to 48.3 g/t Au over 0.75m. The San Jose target is one of the five major targets identified at the Cerro Magallanes rhyolitic dome.
  • Aztec Minerals Corp., and its JV partner Kootenay Silver Inc, announced plans for a CAD $1.3M, two-phase exploration program at its Cervantes project in Sonora. The JV plans to start a phase 1, CAD $85K program of soil and rock sampling and geological mapping during Q1, 2021 to extend the 100m by 100m geological and geochemical grid to the north, west and east boundaries of the property, and subject to phase 1 results and available funds, initiate a phase 2, CAD $1.05M drill program in Q3, 2021 consisting of 5,000m RC program in 22 holes, to test four main target: California, California North, Jasper, and Purisima East.
  • Vizsla Resources Corp., released drill results from eighth holes collared at the Papayo prospect at its Panuco project in Sinaloa. These drill results have expanded the Papayo zone over 120m o the south where it remains open. Significant drill intercepts were encountered in hole NP-20-50 with 198 g/t Ag, 0.96 g/t Au, 1.4% Pb, and 4.5% Zn (413 g/t AgEq) over 1.91m of true width (TW), including 478 g/t Ag, 2.19 g/t Au, 3.7% Pb, and 11.7% Zn (1,009 g/t AgEq) over a TW of 0.69m, and hole NP-20-36 with 144 g/t Ag, 1.21 g/t Au, 0.7% Pb, and 2.4% Zn (321 g/t AgEq) over a TW of 2.46m. 
  • Mithril Resources Ltd., provided an update on the exploration activities performed during the period Q4, 2020 at its Copalquin project in Sinaloa. The company informed that it has completed its maiden drill program of 7,188m of diamond core drilling. Results of the drilling confirmed that El Refugio-El Comets target is part of a large gold-silver epithermal system characterized by extensive surface alteration and rhyolite dome intrusions. The very high grade La Soledad and Leon veins intercepted at the start of the program are also part of this larger epithermal system. Drilling extension at depth and along strike is a key feature of the exploration for 2021.
  • Mammoth Resources Corp., commenced its 2021 field exploration program at its Tenoriba project. The company is currently installing the grid for the infill IP/Mag geophysics survey which is expected to begin in early-mid February. This geophysics survey will assist in 3D modeling of surface and subsurface features to generate drill hole locations and design a drill program scheduled to commence towards the end of the current quarter.
  • Consolidated Zinc Ltd., reported exploration results from the Potrero and Don Lucas targets during Q4, 2020. The company continued the regional mapping and sampling of the mineralized structures identified previously. A total of 67 samples were taken of which 48 samples collected at Potreros- Don Lucas targets returned discouraging results downgrading the prospectivity for economic gold mineralization. Results from 19 samples, including 10 from the Enrique and La Chona areas remain pending and will be released once they are available.
  • Golden Minerals Company, announced results from its recent 3,400m, 15-hole drill campaign and discovered new vein at its Yoquivo project in Chihuahua. Significant drill intercepts were encountered in hole YQ-20-001 collared at Pertenencia Vein with 2.34 g/t Au and 190 g/t Ag (364 g/t AgEq) over 4.2m, including 5.69 g/t Au and 223 g/t Ag (650 g/t AgEq) over 1.3m; hole YQ-20-002 collared at Pertenencia Vein with 0.45 g/t Au and 150 g/t Ag (184 g/t AgEq) over 1.9m, including 1.14 g/t Au and 423 g/t Ag (509 g/t AgEq) over 0.6m; hole YQ-20-006 collared at Esperanza Vein with 1.77 g/t Au and 49 g/t Ag (190 g/t AgEq) over 3.6m, including 5 g/t Au and 118 g/t Ag (524 g/t AgEq) over 1m; hole YQ-20-010 collared at New Vein with 1.9 g/t Au and 135 g/t Ag (278 g/t AgEq) over 5.4m, including 15.4 g/t Au and 1,150 g/t Ag (2,305 g/t AgEq) over 0.2m; and hole YQ-20-011 collared at New Vein with 1.3 g/t Au and 225 g/t Ag (323 g/t AgEq) over 12.3m, including 4.2 g/t Au and 734 g/t Ag (1,049 g/t AgEq) over 3m. The company plans to follow with a second phase drill program which could start in the next few months.
  • GoGold Resources Inc., released results from six initials drill holes and announced a new discovery at El Orito in its Los Ricos North project in Jalisco. Significant drill intercepts were encountered in hole LRGO-20-002 with 76 g/t Ag, 0.06 g/t Au, 0.16% Cu, 3% Pb, and 0.14% Zn (171 g/t AgEq) over 63.4m, including 170 g/t Ag, 0.1 g/t Au, 0.29% Cu, 7.5% Pb, and 0.07% Zn (384 g/t AgEq) over 23m, including 267 g/t Ag, 0.23 g/t Au, 0.22% Cu, 11.5% Pb, and 0.07% Zn (579 g/t AgEq) over 5.3m, including 320 g/t Ag, 0.11 g/t Au, 0.15% Cu, 14.4% Pb, and 0.08% Zn (686 g/t AgEq) over 6.7m; and hole LRGO-20-005 with 49 g/t Ag, 0.05 g/t Au, 0.45% Cu, 3% Pb, and 4.7% Zn (323 g/t AgEq) over 43m, including 85 g/t Ag, 0.11 g/t Au, 0.83% Cu, 4.8% Pb, and 7.6% Zn (538 g/t AgEq) over 14.3m. The known strike length of the El Orito – El Favor structure is now approaching 2,500m and is still open in both directions.
  • Azucar Minerals Ltd., provided an update on drilling activities at its El Cobre project in Veracruz. The company completed hole EC-20-108 at El Primo target, and announced that the deeper part intersected mostly propylitically altered intrusive rocks. Azucar also has moved the drill to Porvenir area and has completed two holes there and a third one is in progress. The company intends to continue exploration at the Primo, Porvenir, and Villa Rica targets in an effort to further delineate resource potential at the project beyond that contained in the initial Norte Zone resource estimate.

ON MINING

  • Consolidated Zinc Ltd., reported Q4, 2020 production and financial results from its Plomosas mine in Chihuahua. The company mined 7,910 tonnes with a further 2,891 tonnes mined and stockpiled underground due to poor haul truck availability for a total of 10801 tonnes grading 14.5% Zn, 8% Pb, and 50 g/t Ag from which, 6,842 tonnes of 14.3% Zn, 8% Pb, and 50 g/t Ag were processed to produce 423 tonnes of Zn concentrate and 45 tonnes of Pb concentrate, at a cash cost of $1.02 per Lb Zn produced and a cash cost of $1.05 per Lb Zn sold.
  • Endeavour Silver Corp., reported 2021 production and cost guidance for its three silver-gold mines in Mexico, the Guanacevi mine in Durango, the Bolañitos mine in Guanajuato and the El Compas mine in Zacatecas. The table below shows 2021 production and cost guidance for their Mexican operations:
  • Fresnillo plc reported Q4, 2020 from their Mexican operations. At Fresnillo mine, Zacatecas, the company processed 590,499 tonnes of 190 g/t Ag, 0.71 g/t Au, 1.1% Pb, and 2.2% Zn to produce 3.2M Oz Ag, 9,485 Oz Au, 11.58M Lb Pb, and 19.95M Lb Zn. At Saucito mine, Zacatecas, the company processed 671,429 tonnes of 195 g/t Ag, 1.4 g/t Au, 1.65% Pb, and 2.95% Zn to produce 3.4M Oz Ag, 23.2K Oz Au, 20.6M Lb Pb, and 30.95M Lb Zn. At its Pyrite Plant, Fresnillo processed 47,860 tonnes of 172 g/t Ag and 1.64 g/t Au to produce 194K Oz Ag and 820 Oz Au. At Cienega mine, Durango, Fresnillo processed 334,977 tonnes of 1.36 g/t Au, 139 g/t Ag, 0.6% Pb, and 1.1% Zn to produce 13.6K Oz Au, 1.3M Oz Ag, 2.95M Lb Pb, and 4.58M Lb Zn. At San Julian mine (Veins), Chihuahua-Durango border, the company processed 315,863 tonnes of 1.58 g/t Au and 103 g/t Ag to produce 15.1K Oz Au and 965K Oz Ag, while at San Julian mine (Disseminated Ore Body) it processed 572,962 tonnes of 0.09 g/t Au, 172 g/t Ag, 0.5% Pb, and 1.3% Zn to produce 925 Oz Au, 2.76M Oz Ag, 4.49M Lb Pb, and 12.95M Lb Zn. At Herradura mine, Sonora, the company processed 6,875,196 of 0.76 g/t Au and 1.5 g/t Ag to produce 134.4K Oz Au and 231K Oz Ag. At Noche Buena mine, Sonora, Fresnillo processed 1,638,305 tonnes of 0.5 g/t Au and 0.84 g/t Ag to produce 17.7K Oz Au and 9K Oz Ag.
  • Gold Resource Corporation, announced Q4, and full year 2020 production results from its Oaxaca Mining Unit in Oaxaca.  The company produced in Q4, 2020 a total of 6,854 Oz Au and 276.9K Oz Ag for a full year production during 2020 of 20,473 Oz Au and 1.19M Oz Ag. Preliminary annual base metal production included approximately 3.5M Lb Cu, 17M Lb Pb, and 43.4M Lb Zn.
  • Mag Silver Corp., reported Q4, 2020 production results from its Juanicipio project in Zacatecas. The company processed 30,397 tonnes to produce 230K Oz Ag and 443 Oz Au.

ON FINANCING

  • Argonaut Gold Inc., announced a $23M bought-deal public offering of flow-through common shares (El Castillo mine, Durango).
  • VanGold Mining Corp., increased its previously announced non-brokered private placement financing to $14.55M (El Pinguico project, Guanajuato). 
  • Americas Gold and Silver Corporation closed its previously announced bought deal financing for aggregate gross proceeds of CAD $33.9M. Part of the gross proceeds will be used for care and maintenance at the company´s Cosala operation mine in Sinaloa, as well as for general corporate and administrative expenses, repayment of outstanding debt obligations, and working capital.
  • Gainey Capital Corp., announced that it has arranged a non brokered private placement for gross proceeds of up to CAD $500K. The company plans to use the gross proceeds for due diligence on potential mineral concessions the company is currently looking, as well as for general working capital (El Colomo, Nayarit). 
  • Mithril Resources Ltd., raised A $5M through a share placement.   Now, the company is fully funded to continue the drilling program of over 10,000m at its Copalquin project in Durango.
  • Elementals Royalties Corp., announced that its common shares are now eligible for electronic clearing and settlement through the Depository Trust Company. Elemental’s common shares will continue to trade under the ticker symbol “ELEMF” on the OTC Markets. (Mercedes mine, Sonora).
  • Gold Resource Corporation declared its monthly dividend of one-third of a cent per common share for January 2021 payable on February 23, 2021 to shareholders (Oaxaca Mining Unit, Oaxaca).
  • Ridgestone Mining Inc., closed the last tranche of its previously announced non-broken private placement for gross proceeds of $695K (Rebeico project, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Fabled Silver Gold Corp., presented initial diamond drill results from the ongoing 8,000m drill program to be performed at its Santa Maria project in Chihuahua. The company has completed four holes for a total of 1,017m. Assays are still pending for holes SM 2020-02 to SM 2020-04 and the fifth holes is in progress.  The first hole (SM 2020-01) returned significant results with 0.18 g/t Au and 44 g/t Ag over 68.6m, including 0.35 g/t Au and 106 g/t Ag over 20m, including 0.27 g/t Au and 146 g/t Ag over 2m, including 1.09 g/t Au and 238 g/t Ag over 1.60m, and including 0.34 g/t Au and 151 g/t Ag over 1.90m.
  • Capstone Mining Corp., announced an updated technical report for its Cozamin mine in Zacatecas, and extends mine life to 2031. Proven + probable mineral reserves increased by 39% to 14.1M tonnes grading 1.77% Cu, 44 g/t Ag, 0.54% Zn, and 0.21% Pb for a total of 551.16M Lb Cu, 20.18M Oz Ag, 169.76M Lb Zn, and 63.9M Lb Pb contained, and measured and indicated mineral resources increased by 10% to 29.7M tonnes of grading 1.52% Cu, 44 g/t Ag, 1.1% Zn, and 0.32% Pb for a total of 994.28M Lb Cu, 41.5M Oz Ag, 720.9M Lb Zn, and 209.4M Lb Pb contained, and inferred resources of 13.87M tonnes grading 0.54% Cu, 39 g/t Ag, 2.23% Zn, and 0.74% Pb for a total of 165.34M Lb Cu, 17.4M Oz Ag, 681.2M Lb Zn, and 227.1M Lb Pb contained. The new reserve mine plan is projected to produce 512M Lb Cu and 16M Oz Ag over the next 10 years.
  • Comet Resources Limited, provided the Q4, 2020 activities report. The company was focused on setting up a field office as well as on the engagement of local geological consultants to move towards its initial drilling program in 2021. Comet completed a field mapping and sampling program in Q4, 2020, to support planning for and locations of initial drilling program. The plan is to get drill permits in Q1, 2021 and begins the initial drilling program by late in Q1, or early Q2, 2021. As announced on October 13, 2020, the JORC inferred mineral resource estimate for the Santa Teresa project was for 369K tonnes of 7.47 g/t Au for a total of 88.6K Oz Au contained.
  • Oroco Resource Corp.,  reported significant 3D IP survey results at its Santo Tomas project in Sinaloa. The survey is now approximately 80% complete, and Oroco has received preliminary inversion data for all stations surveyed to date.  The preliminary inversion model has successfully mapped the resistivity and chargeability characteristics along a swath 2.1km wide by 4.3 km along strike over the South Zone, North Zone and part of the Brasiles Zone.
  • VanGold Mining Corp., commenced a 12-14 drill holes program and will be conducted underground, within old workings at the historic El Pinguico mine in Guanajuato.
  • Minera Alamos Inc., provided a construction update at its Santana project in Sonora as it advances toward the commencement of mining. The company reported that the leach solution ponds are now fully lined and ready for operations, the plant foundations have been completed and all previously fabricated plant structures have been delivered to site in preparation for final installation that is now underway, The majority of the civil works for the heap leach pad area have been completed and the installation of the pad liner has commenced this week, and the crushing system previously acquired for potential future expansions at Santana is in transit from the U.S. to the Company’s staging facilities in Ciudad Obregón, Sonora.
  • Great Panther Mining Limited announced an update on exploration strategy and programs for 2021 (Topia mine, Durango).  At San Ignacio, Guanajuato, Great Panther plans to perform a 5,000m in-fill surface drilling program along the Purisima veins south of the development of the San Pedro ramp, deeper in the Purisima / Purisima alto vein system and continue testing for Au-Ag mineralization along 1.1km of Purisima vein north from the old San Ignacio shaft.  At Guanajuato mine, Guanajuato, the company will continue the geological mapping and sampling in accessible parts of the historical mining areas(now, near to be completed) and will be followed by a 10,000m of underground drilling along the north side of Valenciana, between Valenciana and Cata, and in the Pozos , Promontorio, and Guanajuatito areas. At Topia mine, Durango,  5,000m of surface drilling are planned focused on defining new mineral resources in six areas along the strike and down-dip extents of present mining efforts.

ON DEALS AND CORPORATE ISSUES

  • Mexican Gold Mining Cop., engaged JDS Energy & Mining Inc., for a PEA at its Las Minas project in Veracruz. The PEA is expected to be completed in Q2, 2021.
  • Canuc Resources Corporation, doubled its land position at San Javier project in Sonora by signing a purchase agreement for five claims comprising 416.9 hectares. To date, Canuc has accumulated a ground position 833.1 contiguous hectares.
  • Magna Gold Corp., appointed its new CFO (San Francisco mine, Sonora).
  • Defiance Silver Corp., entered into an option agreement to acquire 1,915 hectares surrounding its Tepal project in Michoacan. As a result, Defiance has doubled its land position at the project.  The company has agreed to pay the annual concession fees until a production decision has been made, upon which Defiance will pay the vendor USD $2 M for 100% ownership of the mining concessions.
  • Vizsla Resources Corp., announced strengthening of its senior management team and board with the promotions of its Technical Director and VP of Technical Services, and the appointment of its Country Manager (Panuco project, Sinaloa).
  • First Majestic Silver Corp., confirmed that it is not aware of any material, undisclosed information related to the Company that would account for the recent increase in the market price and level of trading volume of its ordinary shares (San Dimas property, Durango).
  • Mexican Gold Mining Corp., appointed two new members as technical advisors to assist the company as it moves Las Minas project, Veracruz towards a PEA.
  • Discovery Metals Corp., named to the 2021 OTCQX Best 50, a ranking of top performing companies traded on the OTCQX Best Market last year.  (Cordero project, Chihuahua).
  • Gainey Capital Corp., provided an update on its Mexican projects and corporate activities. The company took the decision to not continue with the option on the Las Margaritas project in Durango. The El Colomo project, Nayarit will continue to be the flagship project of the company.
  • Orex Minerals Inc., announced the resignation of one member of the board and the appointment of its new Director. Orex also granted 3.55M incentive stock options to directors, officers, and consultants (Sandra project, Durango).
  • Magna Gold Corp., provided a letter to all of its shareholders in which it explained the strategy used to grow the company through strategic acquisitions and targeted exploration to evolve from a junior exploration company to an intermediate gold producer in Mexico. Since the Company’s inception in 2017, it has returned 10x to the Company’s shareholders (San Francisco mine, Sonora).

ON SOCIAL RESPONSIBILITY

  • Fresnillo plc strengthens education in times of pandemic. Fresnillo plc has joined efforts in favor of education, training and development for the lives of thousands of young people, to boost their professional, economic and social growth.
  • Peñoles reaffirms its commitment to promoting education through the implementation of academic programs that seek to develop skills and tools so that children and young people in Mexico aspire to a better future. Peñoles has academic initiatives with a focus on reading, science, technology, human development, sports and culture for different educational levels.
  • The companies Autlán, Grupo México, Industrias Peñoles, Newmont-Peñasquito, Fresnillo plc and Coeur Mining participate in water management projects that were highlighted by the Mexican Mining Chamber (CAMIMEX) in its 2020 sustainability report.

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, stibiconite in a low sulphidation epithermal system in a prospect in Durango, Mexico.  Photo by Miguel A Heredia., Mexico

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

By Jorge Cirett

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

ON MEXICO ISSUES

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

ON EXPLORATION

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

ON MINING

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

ON FINANCING

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

ON RESOURCES AND DEVELOPMENT

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

ON DEALS AND CORPORATE ISSUES

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

ON SOCIAL RESPONSIBILITY

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

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