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 Third Week of January, 2021

By Jorge Cirett

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

ON MEXICO ISSUES

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

ON EXPLORATION

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

ON MINING

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

ON FINANCING

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

ON RESOURCES AND DEVELOPMENT

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

ON DEALS AND CORPORATE ISSUES

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

ON SOCIAL RESPONSIBILITY

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

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

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

By Jorge Cirett

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

ON MEXICO ISSUES

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

ON EXPLORATION

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

ON MINING

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

ON FINANCING

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

ON RESOURCES AND DEVELOPMENT

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

ON DEALS AND CORPORATE ISSUES

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

ON SOCIAL RESPONSIBILITY

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

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

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

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

By Jorge Cirett

During the 46th week of the year (November 9th to November 15th, 2020), at least 23 press releases were announced by companies working in Mexico. To note, five companies posted exploration advances on their projects and six more posted on project development. ON MEXICO ISSUES, Canadian mining investment increased during the COVID pandemic; a webinar about lithium in Mexico was held; the illegal blockade on Equinox’s Los Filos mine in Guerrero ended and the Discoveries Conference was held in Guadalajara, the first in-person gathering of the mining community since the pandemic began. ON EXPLORATION, in Sonora, Colibri released trench results from Evelyn; Tarachi Gold is mobilizing a portable diamond drill to the San Javier concession on its Tarachi property. In Sinaloa, Vizsla released assays from drilling at Panuco; Kootenay released drill results from Copalito. In Zacatecas, Advance Gold completed an IP survey.  ON MINING, Sierra Metals, Equinox and Americas Gold and Silver released third quarter 2020 results. Americas Gold and Silver updated on the Cosalá Complex situation in Sinaloa. ON FINANCING, Silver Bull and Candente Gold raised US$150 K and $200 K respectively. Aura Minerals made some clarifications on its latest public offering. Reyna Silver is now trading in USA and Germany. ON RESOURCES AND DEVELOPMENT, Mexican Gold released high grade drill results from its resource expansion program at Las Minas, Veracruz. Endeavour Silver released high-grade intercepts on Guanaceví, Durango. Discovery Metals released interesting results from drilling at its Cordero project in Chihuahua. GoGold informed on additional drill results from Los Ricos North project in Jalisco. Southern Silver Exploration informed on drill results from its Cerro Las Minitas project in Durango, some of which are high-grade. SilverCrest Metals updated on development activities at its Las Chispas project in Sonora.  ON DEALS AND CORPORATE ISSUES, Magna Gold optioned the Margarita project from Sable Resources (a property brought to Sable’s attention by Gambusino Prospector). VanGold Mining amended its option agreement to re-purchase three of four underlying royalties at its El Pinguico project in Guanajuato. ON SOCIAL RESPONSIBILITY. Fresnillo PLC promotes the creation of micro and small businesses in the Caborca region in Sonora.

ON MEXICO ISSUES

  • The COVID-19 pandemic saw investments by Canadian miners increase in Mexico, from US$30 M to US$160 – US$170 M a month during last September, according to Douglas Coleman, CEO of Mexico Mining Center. The increase in precious metal prices brought also an average increase of 30% on the valuation of companies in the Bolsa Mexicana de Valores (BMV) during the first 10 months of the current year.
  • The illegal blockade by the Carrizalillo community on Equinox’s Los Filos mine in Guerrero has been lifted, according to Jorge Zuriel de los Santos, head of the Fiscalía General del Estado de Guerrero (State Prosecutor).
  • The webinar “The truth about lithium in Mexico” was held on November 11, 2020, sponsored by Mundo Minero, the Colegio de Ingenieros de Minas, Metalurgistas y Geólogos de México (CIMMGM) and the Asociación de Ingenieros Mineros, Metalurgistas y Geólogos de México (AIMMGM).

ON EXPLORATION

  • Colibri Resource Corp. released assay results from the trenching program at its Evelyn project in Sonora. Highlighted results include 0.40 m @ 4.01 gpt Au on a quartz vein with oxidized pyrite, sericite and iron carbonate; 1.5 m @ 2.44 gpt Au in an andesite with quartz veining with oxidized pyrite and iron carbonate; Colibri has been granted a permit to complete up to 2.2 Km of trenching, and has collected 77 rock samples so far in these 1.5 m to 2.5 m deep trenches.
  • Vizsla Resources Corp. provided assay results from drilling on the Papayo and San Carlos prospects at its Panuco project in Sinaloa. “Drilling has continued to expand the known extents of mineralization at Papayo” with highlighted true width (TW) results comprising: 0.74 m @  7.96 gpt Au, 1,515 gpt Ag, 0.50% Pb, 1.21% Zn; 1.29 m @ 0.61 gpt Au, 125 gpt Ag; 0.78 m @ 2.66 gpt Au, 474 gpt Ag, 1.04% Pb, 2.80% Zn; 0.95 m @ 21.60 gpt Au, 216 gpt Ag, 1.91% Pb, 6.02% Zn; 1.49 m @ 1.0 gpt Au, 207 gpt Ag, 0.56% Pb, 1.32% Zn; 1.37 m @ 1.31 gpt Au, 168 gpt Ag; 5.61 m @ 1.05 gpt Au, 89 gpt Ag, 0.74% Pb, 1.9% Zn. “The San Carlos structure is wide lower grade bulk tonnage target with an average width of 11.5m and a range from 3.35m to 22.8m” with highlighted TW intercepts comprising 15.62 m @ 0.91 gpt Au, 110 gpt Ag (including 4.78 m @ 2.19 gpt Au, 230 gpt Ag); 19.20 m @ 0.30 gpt Au, 53 gpt Ag; 17.18 m @ 0.45 gpt Au, 67 gpt Ag (including 4.59 m @ 0.97 gpt Au, 147 gpt Ag); 22.76 m @ 0.26 gpt Au, 43 gpt Ag.
  • Advance Gold Corp. completed an induced polarization (IP) survey on its Tabasqueña project in Zacatecas. The new IP survey highlights two wide and closely spaced high chargeability anomalies, with the strongest being on the western part of the new grid. “For both targets, the associated chargeability anomaly is deeply seated (> 250 to 300m) while their origin is linked to two distinct wide mineralized systems. The western anomaly appears to remain open laterally to the north and south within the property limits”.
  • Tarachi Gold Corp. is mobilizing a man portable diamond drill rig to commence drill testing the high-grade gold bearing structures on the San Javier concession, part of its Tarachi project in Sonora. The drill program will focus on a NW trending shear structure where previous drill holes intercepted 5.0 m @ 34.5 gpt Au and 3.0 m @ 24.3 gpt Au. Mineralization is hosted in andesitic volcanic rocks, flanked by an intrusive rock, and the shear zone at San Javier remains open along strike and to depth, with the possibility of an extension under cover.
  • Kootenay Silver Inc. released results from the last seven holes on its 4,153 m drilling program at Copalito, in Sinaloa.  Highlighted intercepts comprise 9.05 m @ 2.09 gpt au, 124 gpt Ag, 0.8% Pb+Zn (including 2.25 m @ 6.65 gpt Au, 335 gpt Ag, 2.6% Pb+Zn, including 0.51 m @ 16.95 gpt Au, 369 gpt Ag, 3.74% Pb+Zn); 27.4 m @ 60 gpt Ag, 0.28 gpt Au, 0.4% Pb+Zn; 10 m @ 128 gpt Ag, 0.65 gpt Au, 1.13% Pb+Zn (including 2.25 m @ 484 gpt Ag, 2.18 gpt Au, 2.86% Pb+Zn).

ON MINING

  • Sierra Metals Inc. Released consolidated third quarter results for 2020, with some figures from its Mexican operations. The Bolivar Mine in Chihuahua processed 410.5 K tonnes in the quarter, a record representing a 24% increase over Q3 2019, at 4,691 tpd, and in track to reach the targeted 5,000 tpd during Q4 2020. The Cusi mine, also in Chihuahua, produced a record 304 K Oz Ag, with an ore throughput of 1,074 tpd.
  • Equinox gold Corp. reported its third quarter 2020 financial and operating results, without detailing figures from its Mexican operations. At Los Filos, the Guadalupe open pit and Bermejal underground proceeded for July and August, but were suspended by an illegal blockade by the community on September 3rd. “Optimization study for new carbon-in-leach plant, heap leach expansion, updated mine planning and a Mineral Reserve and Mineral Resource update targeted for completion in early 2021”.
  • Americas Gold and Silver Corp. reported financial and operational results for the third quarter 2020, including an update on its Mexican operations. At Cosalá, in Sinaloa “In August 2020, the Company announced that the illegal blockade had been resolved to permit some Company personnel the opportunity to re‐enter the mine operations.    This access has not been maintained.  With the re‐opening of Mexican government offices in August, the Company’s employees were expected to vote in September 2020 for new union representation and did so on September 17.  In advance of the vote, a number of irregularities came to light, which indicated that there could not be a fully democratic vote with freedom of association. As a result, the Company does not believe there are conditions currently present to invest the required capital to re‐start the Cosalá Operations.  The Company continues to work with all legitimate stakeholders and remains hopeful that a resolution, consistent with the rule of law and featuring an election free from threats and intimidation, can be achieved so that operations can re‐commence in the near term”. The company also finalized the option agreement with Hochschild to acquire 100% of the San Felipe project in Sonora.

ON FINANCING

  • Aura Minerals Corp. made some clarifications regarding the secondary public offering of Brazilian depositary receipts issued by Itaú Unibanco S.A. as depositary. “The total gross proceeds of the Secondary Offering to the Selling Shareholders are R$87,300,000.00, of which an aggregate of R$19,400,000 is in respect of the Shares offered, severally, by the ARC Funds and R$67,900,000 is in respect of the Shares offered by Ruffer. The Company will not receive any proceeds from the Secondary Offering” (Aranzazú, Zacatecas).
  • Silver Bull Resources Inc. completed the second and final tranche of the previously announced private placement, for gross proceeds of US$150 K, and aggregate gross proceeds of US$1.7 M (Sierra Mojada, Coahuila).
  • Reyna Silver Corp. announced its common shares have been approved for listing on the OTCQB Market Exchange in the United States and the Frankfurt Stock Exchange in Germany.
  • Candente Gold Corp. advised that the previously announced non-brokered private placement has been fully subscribed, for gross profits of $200K (El Oro, Estado de Mexico).

ON RESOURCES AND DEVELOPMENT

  • Mexican Gold Mining Corp.  released further assay results from the 2020 drilling program at its Las Minas project in Veracruz. Most of the 52 holes drilled so far have been targeting potential extensions to the El dorado resource, which remains open in several directions. Highlighted true width (TW) intercepts comprise 4.6 m @ 1.41 gpt Au, 0.55% Cu; 15.3 m @ 1.21 gpt Au, 1.1% Cu; 3.2 m @ 3.74 gpt Au, 3.76% Cu; 8.5 m @ 4.86 gpt Au, 1.17% Cu; 17 m @ 1.2 gpt Au, 0.85% Cu; 11.6 m @ 1.56 gpt Au, 1.03% Cu; 11.6 m @ 4.38 gpt Au, 1.84% Cu; 28.5 m @ 2.8 gpt Au, 1.12% Cu; 8.0 m @ 1.9 gpt Au, 0.36% Cu; 7.4 m @ 3.46 gpt Au, 5.08% Cu; 5.3 m @ 0.4 gpt Au, 0.83% Cu.
  • Endeavour Silver Corp. continues to intersect high-grade mineralization in the Santa Cruz vein on the El Curso property of the Guanaceví mine in Durango. Highlighted TW intersections on eleven holes comprise 3.2 m @ 2,307 gpt Ag, 3.15 gpt Au (2,559 gpt AgEq); 3.1 m @ 1,409 gpt Ag, 3.13 gpt Au (1,659 gpt AgEq) and 11.5 m @ 381 gpt Ag, 0.5 gpt Au.
  • Discovery Metals Corp. released results from seven diamond drill holes targeting bulk-tonnage mineralization in the South Corridor at its Cordero project in Chihuahua. Some of the highlighted results comprise 71.2 m @ 18 gpt Ag, 0.06 gpt Au, 0.2% Pb, 0.7% Zn; 139.1 m @ 47 gpt Ag, 0.07 gpt Au, 0.6% Pb, 1.6% Zn (138 gpt AgEq); 26.6 m @ 56 gpt Ag, 0.09 gpt Au, 0.4% Pb, 0.7% Zn; 19.4 m @ 41 gpt Ag, 0.06 gpt Au, 0.5% Pb, 1.2% Zn; 29.6 m @ 52 gpt Ag, 0.07 gpt Au, 0.8% Pb, 0.8% Zn; 92.1 m @ 27 gpt Ag, 0.05 gpt Au, 0.2% Pb, 0.4% Zn; 32.4 m@ 72 gpt Ag, 0.07 gpt Au, 0.3% Pb, 0.1% Zn; 38.4 m @ 36 gpt Ag, 0.04 gpt Au, 0.6% Pb, 0.7% Zn; 33.9 m @ 30 gpt Ag, 0.07 gpt Au, 0.5% Pb, 0.7% Zn; 62.2 m @ 38 gpt Ag, 0.07 gpt Au, 0.4% Pb, 0.7% Zn; 57.1 m @ 18 gpt Ag, 0.01 gpt Au, 0.2% Pb, 1.0% Zn. Assays from 27 holes are pending and four rigs are operating at the site.
  • GoGold Resources Inc. released additional drill results from the La Trini deposit at its Los Ricos North project in Jalisco. Highlighted core length intercepts comprise 25.9 m @ 0.34 gpt Au, 52 gpt Ag (including 4.7 m @ 0.81 gpt Au, 124 gpt Ag); 2.4 m @ 0.05 gpt Au, 300 gpt Ag; 18.7 m @ 0.58 gpt Au 46 gpt Ag; 18.2 m @ 0.11 gpt Au, 48 gpt Ag; 15.2 m @ 0.71 gpt Au, 71 gpt Ag (including 2.0 m @ 3.55 gpt Au, 284 gpt Ag and 1.3 m @ 4.20 gpt Au, 733 gpt Ag).
  • Southern Silver Exploration Corp. reported initial assay results from the recently started 10,000 m core drilling program at Cerro Las Minitas, Durango. Highlighted true width results from holes in the South Skarn target comprise 4.0 m @ 109 gpt Ag, 0.14 gpt Au, 0.02% Cu, 1.8% Pb, 2.1% Zn (including 0.9 m @ 412 gpt Ag, 0.14 gpt Au, 0.06% Cu, 7.8% Pb, 9.2% Zn); 0.8 m @ 132 gpt Ag, 0.12 gpt Au, 0.02% Cu, 2.8% Pb, 2.0% Zn; 1.1 m @ 54 gpt Ag, 2.83 gpt Au, 0.01% Cu, 3.6% Pb, 0.4% Zn; 3.2 m @ 99 gpt Ag, 0.27 gpt Au, 0.01% Cu, 0.7% Pb, 0.6% Zn; 6.7 m @ 625 gpt Ag, 0.11 gpt Au, 0.03% Cu, 11.8% Pb, 7.5% Zn; 1.2 m @ 112 gpt Ag, 0.07 gpt Au, 2.2% Pb, 2.1% Zn.
  • SilverCrest Metals Inc. provided an update on activities for 2020. During the first nine months of the year the company has drilled 146,000 m of in-fill and expansion drilling at Las Chispas project in Sonora. Furthermore, 4.1 km of underground decline and lateral drifting, stockpiling an accumulated 47 K tonnes @ 1,130 gpt AgEq (7.21 gpt Au, 590 gpt Ag). “Las Chispas site activities continued with the building of the administration and warehouse facilities, phase 1 of the temporary quarantined COVID-19 camp, communication system, and water pumping stations”. Since inception of the project, 461,000 m have been drilled in 1,712 holes. As October 31, 2020, SilverCrest has cash and cash equivalents of $184 M (US$138.2 M).

ON DEALS AND CORPORATE ISSUES

  • Magna Gold Corp. entered into a definitive option acquisition agreement with Sable Resources Ltd. To acquire Sable’s option to acquire 100% interest in the 125.6 ha Margarita silver property in Chihuahua; the property lies 15 Km northwest on strike with the recently commissioned Sunshine Silver Corp’s Los Gatos mine. Magna is to acquire the option by paying CAD$1.5 M cash, plus additional CAD$800 K VAT and CAD$3.5 M in common shares of Magna. The purchaser will exercise the option to acquire the property by payment of CAD$500 K in cash, plus $368 K in VAT to the titleholders of the concessions and CAD$1.8 M in Magna shares. Sable drilled 35 holes for a total of 5,245 m, with intercepts like: 4.25 m @ 430 gpt Ag, 0.2% Pb, 0.7% Zn; 12.4 m @ 446 gpt Ag, 0.7% Pb, 1.0% Zn; 14.05 m @ 306 gpt Ag, 0.7% Pb, 1.9% Zn; 11.3 m @ 229 gpt Ag, 1.0% Pb, 0.3% Zn; 33.3 m @ 283 gpt Ag, 0.3% Pb, 0.8% Zn (including 9.9 m @ 579 gpt Ag, 0.8% Pb, 1.7% Zn); 20.6 m @ 83 gpt Ag, 0.1% Pb, 0.3% Zn (including 5.1 m @ 198 gpt Ag, 0.2% Pb, 0.3% Zn); 48.65 m @ 102 gpt Ag, 0.1% Pb, 0.4% Zn; 37.35 m @ 117 gpt Ag, 0.17 gpt Au, 0.2% Pb, 0.7% Zn (including 5.5 m @ 400 gpt Ag, 1.07 gpt Au, 1.1% Pb, 0.4% Zn).
  • VanGold Mining Corp. amended its option agreement to re-purchase three of the four underlying royalties on its Pinguico project, Guanajuato. Under the new terms the option is exercisable by making payments to EMBSA (Exploraciones Mineras del Bajío, S.A. de C.V.) of $200 K cash and 3.75 M shares before November 20, 2020; $325 K in cash before February 22, 2021; $525 K in cash before February 22, 2022 and $625 K in cash before February 22, 2023. After these payments are made, the only NSR on the property will cover the above ground and below ground stockpiles. 

ON SOCIAL RESPONSIBILITY

  • Fresnillo PLC promotes the creation of micro and small businesses by means of its “Emprende en Línea” (Online Entrepreneurship) program, to develop administrative and managerial capabilities to consolidate businesses. For more than two decades Minera Penmont has contributed to the growth of the Caborca region through the implementation of social programs.

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: Base metal veinlet in core from Cerro San Pedro, San Luis Potosí. Picture by Jorge Cirett.

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

By Jorge Cirett

During the 40th week of the year (September 28th to October 4th, 2020), at least 40 press releases were announced by companies working in Mexico. To note, five companies posted exploration advances on their projects, ten companies posted news related to financing or share structure, and seven on their projects development. ON MEXICO ISSUES, the Mining Fund is gone. A new special force was created to aid protect mining companies from criminal gangs activities. Only nine percent of Mexico is under a current mining concession. The CTM asks for the continuation of the Mining Fund. Some 150 junior exploration companies have left Mexico. The Mining-Metallurgic production index grew by 6.2% in July. Sixteen municipalities in Hidalgo are to receive $48 M pesos from the Mining Fund. ON EXPLORATION, in Sonora, Colibri Resources completed a mag survey on Evelyn. Tocvan Ventures identified a pipe like structure at its Pilar project. In Sinaloa, Brigadier Gold commenced drilling at Picachos. In Durango, Mithril Resources released drilling results from Copalquin. In Oaxaca, Megastar Development team is back in the field at Yautepec and Magdalena.  ON MINING, No relevant news. ON FINANCING, One World Lithium ($1.5 M), Plymouth Realty Capital ($10 M), Barksdale ($6.325 M), Santacruz Silver (CDN$9.5 M), Prismo Metals ($575 K), Endeavour Silver (US$60 M) released news regarding financing rounds. Candelaria Mining settled a $1.087 M debt with shares. Silver One granted options to its directors, officers, employees and consultants. Silver Dollar started trading at the OTCQB. ON RESOURCES AND DEVELOPMENT, GR Silver released underground channel sampling results. Consolidated Zinc presented the latest resource estimate at its Plomosas mine in Chihuahua, and announced the refurbishment of the processing plant at the site. Capitan Mining commenced resource expansion drilling at El Capitan, Durango. Azucar Minerals presented the initial resource estimate for the El Norte Zone of its El Cobre project in Veracruz. GoGold Resources released drilling results from its Los Ricos North project in Jalisco. Bacanora Minerals is focusing in engineering while the financing package is complete for its Sonora Lithium project. Golden Minerals released final results of its resource definition drilling program at the Rodeo project, Durango. ON DEALS AND CORPORATE ISSUES, Candente Gold signed the definitive agreement on the acquisition of the San Dieguito de Arriba plant in Nayarit. Silver One is selling its Mexican properties to Plymouth Realty Capital. Dyna Resources is trying to enforce in USA a favorable Mexican court ruling. Silver Spruce has recurred to force majeure clause for lack of access to its Pino de Plata property in Chihuahua. Reyna Silver entered into an option agreement to acquire the Reyna project in Chihuahua. ON SOCIAL RESPONSIBILITY. Fresnillo PLC, Minera Autlan, Minera Saucito and Industrias Peñoles informed on sustainability, health, safety, environment, social and governance programs.

ON MEXICO ISSUES

  • The Mining Fund is gone for good from the purpose it was created for: aiding the development of mining communities. Mining States and municipalities wonder what the destiny of more than $1,500 M pesos actually in the Fund. The actual federal government re-directed the use of the Mining Fund, with 85% going to the Education Secretariat, 5% to the Economy Secretary and 10% to federal government infrastructure programs.
  • A new special force for overseeing mining operations was formed by the federal government. The first 118 guards graduated from a special training course, and will be equipped with assault weapons. Heists by organized crime have plagued the industry in the last few years, with robberies of bullion in mining operations across several states.
  • The Economy Secretariat informed mining concessions cover only 9% of Mexico. Graciela Marquez, Secretary of Economy noted that 24 thousand current mining concessions cover 17 M hectares. The Director de Minas (reporting to Gabriela Marquez) pointed that they are following the president view of not granting more mining concessions, which is problem that will catch up in 10 years’ time with fewer new deposits to mine due to the lack of exploration.
  • The Confederacion de Trabajadores de Mexico (one of the largest union organizations in Mexico, best known as “CTM”) asked the federal government and the Deputies Chamber for the no disappearance of the Mining Fund.
  • Fernando Alanís Ortega from Camimex pointed out some 150 junior exploration companies have left Mexico due to the complex operative environment. Several companies have diversified their operations this year, with acquisitions in Canada and USA. The last company to divest its Mexican portfolio is Silver One, to focus on a project in Nevada.
  • The Mexican index of Mining-Metallurgic production increased by 6.2% in July, compared with the same month of 2019 and by 5.1% from July 2020 to the previous month.
  • Sixteen Municipalities in Hidalgo are to receive $48 M pesos from the Fund for Development of Mining Production Zones.  

ON EXPLORATION

  • Brigadier Gold Ltd. commenced its maiden drill program at the 3,954 ha Picachos property in Sinaloa. The drilling of 5,000 m in 40 holes will test the San Agustín mine (underground rock chip sample of 1.2 m @ 73.4 gpt Au), and the the Mochomos (underground rock chip sample of 0.5 m @ 18.5 gpt Au, 570 gpt Ag), Tejones (underground rock chip sample of 1.0 m @ 28.6 gpt Au, 114 gpt Ag) and Fermin (underground rock chip sample of 1.0 m @ 0.3 gpt Au, 268 gpt Ag) veins. “the Cocolmeca Vein system is comprised of several sub-parallel veins over a 1.5 kilometre (km) wide zone ……  San Agustín is the best understood of these veins, mainly because it has been historically exposed underground by approximately 670 line-metres of tunnels, stopes and shafts”.
  • Colibri Resource Corp. received results from a high-resolution magnetic survey at its Evelyin property in Sonora. The interpretation of the magnetic data allowed the identification of three families of lineaments that are to aid in the definition and prioritization of targets.
  • Tocvan Ventures Corp. informed on new interpretations on all the information gathered on its Pilar project in Sonora. With the aid of geophysical, geochemical and structural specialists a conclusion was reached that a sub-vertical pipe-like feature may represent a breccia feeder pipe related to epithermal mineralization. The pipe is close to 100 m in diameter, oval shaped and dipping 70 degrees to the SSW.
  • Mithril Resources Ltd. Released results from nine more holes at La Soledad in the Copalquin project, Durango. Drilling confirmed the bonanza grades of the La Soledad vein and intercepted additional veins at depth and along strike. Highlighted results comprise 3.8 m @ 2.58 gpt Au, 143 gpt Ag; 0.5 m @ 6.78 gpt Au, 10 gpt Ag, an open working for 2.5 m and then 1.5 m @ 6.65 gpt Au, 18 gpt Ag; 2.82 m @ 2.37 gpt Au, 22 gpt Ag; 7.5 m @ 6.74 gpt Au, 158 gpt Ag.
  • Megastar Development Corp. reported its exploration team is back at the Yautepec and Magdalena projects in Oaxaca. So far, they have found “highly prospective ferruginous (iron-rich) carbonate sinters and fault-controlled quartz veining and breccias in discontinuous erosional windows under post-mineral volcanic rocks over areas of several hundreds of meters”. These findings correlate well with the envisaged uppermost levels of an epithermal system, the concept exploration model used at the site.

ON MINING

  • No Relevant News.

ON FINANCING

  • One World Lithium Inc. announced a non-brokered private placement for gross proceeds of up to $1.5 M (Salar del Diablo, Baja California).
  •  Candelaria Mining Corp. closed the previously announced shares for debt transaction in settlement of $1.087 M of indebtedness (Pinos, Zacatecas).
  • Plymouth Realty Capital Corp. will complete a $10 M private placement funding (Peñasco Quemado, Sonora; La Frazada, Nayarit; Pluton, Durango).
  • Silver One Resources Inc. granted 2.575 M stock options to its directors, officers, employees and consultants (Peñasco Quemado, Sonora).
  • Fresnillo PLC. Is extended the expiration time on its tender offer to purchase for cash any and all of its outstanding US$800,000,000 principal amount of 5.5% Notes due 2023, to September 29. 2020 (La Herradura, Sonora).
  • Silver Dollar Resources Inc. started trading on September 30, 2020, in the United States on the OTCQB Venture Market (La Joya, Durango).
  • Barksdale Resources Corp. closed the final tranche of the company’s non-brokered private placement that raised $6.325 M (San Javier, Sonora).
  • Santacruz Silver Mining Ltd. Increased the size of its previously announced non-brokered private placement offering to CDN$9.5 M (Rosario, San Luis Potosi).
  • Prismo Metals Inc. completed its initial public offering (IPO) for gross proceeds of $575 K (Palos Verdes, Sinaloa).
  • Endeavour Silver Corp. entered into a sales agreement with BMO Capital Markets as the lead agent upon which the company can sell a number of common shares than can amount up to US$60 M (El Compas, Zacatecas; Terronera, Jalisco).

ON RESOURCES AND DEVELOPMENT

  • GR Silver Mining Ltd.  announced favorable results from underground channel sampling on the lower level of the Plomosas mine in Sinaloa. Disseminated and massive mineralization is constituted by veins, stockworks and sulfide stringers that include chalcopyrite, sphalerite and galena in a brecciated tuff. Highlighted channel intervals comprise 2.6 m @ 504 gpt Ag, 14.6 gpt Au, 8.9% Pb, 6.6% Zn, 0.3% Cu; 15.7 m @ 90 gpt Ag, 2.5 gpt Au, 0.5% Pb, 1.3% Zn, 0.8% Cu: 5.4 m @ 147 gpt Ag, 10.0 gpt Au, 0.6% Pb, 3.3% Zn, 1.2% Cu; 7.8 m @ 50 gpt Ag, 2.9 gpt Au, 2.2% Pb, 7.3% Zn, 0.2% Cu; 6.0 m @ 66 gpt Ag, 6.2 gpt Au, 1.4% Pb, 3.9% Zn, 0.9% Cu.
  • Consolidated Zinc Ltd. presented a mineral resource estimate for the month of April 2020 for its Plomosas mine in Chihuahua. The indicated and inferred mineral resources comprise 964 K tonnes @ 13.2% Zn, 3.5% Pb, 20.6 gpt Ag that contain 127 K tonnes of zinc, 34 K tonnes of lead and 639 K Oz silver. The company is refurbishing the Plomosas beneficiation plant to process the ore at the site, for an estimated cost of US$1.35 M. The plant will start processing 3,000 tonnes per day (tpd), with the possibility of an expansion to 6,000 tpd.
  • Capitan Mining Inc. has commenced drilling at the Capitan project in Durango. The first phase comprises 6,000 m of reverse circulation drilling focused on step-out holes for resource expansion.
  • Azucar Minerals Ltd. completed its initial resource estimate for the Norte zone at El cobre project in Veracruz. “Copper and gold mineralization at the Norte Zone is associated with a multiphase variably potassic-phyllic altered porphyritic diorite intrusive complex that is cut by late mafic and intermediate dykes and post mineral feldspar porphyry. The Norte Zone is approximately 0.6 km x 0.4 km along an E-W strike. Sulphide mineralization, which extends up to 900 metres depth, consists of disseminated and vein-hosted chalcopyrite and trace bornite (Cu mineralization) exposed in surface outcrops and intersected in drill core”. The base case scenario considers indicated resources of 47.2 M tonnes @ 0.49 gpt Au, 0.21% Cu, 1.4 gpt Ag containing 1.17 M Oz AuEq and inferred resources of 26.9 M tonnes @ 0.42 gpt Au, 0.18% Cu, 1.3 gpt Ag, containing 1.35 M Oz AuEq.
  • GoGold Resources Inc. released drilling results from the La Trini deposit on the Los Ricos North project in Jalisco. Some of the highlighted results from 12 holes released comprise 22.5 m @ 1.37 gpt Au, 158 gpt Ag; 22.5 m @ 0.20 gpt Au, 48 gpt Ag; 44.5 m @ 0.84 gpt Au, 63 gpt Ag; 38.4 m @ 0.40 gpt Au, 30 gpt Ag; 29.6 m @ 0.42 gpt Au, 88 gpt Ag; 27 m @ 0.12 gpt Au, 48 gpt Ag; 7.9 m @ 0.86 gpt Au, 64 gpt Ag; 19.5 m @ 0.18 gpt Au, 83 gpt Ag; 21.8 m @ 2.73 gpt Au, 130 gpt Ag (including 5.6 m @ 9.40 gpt Au, 365 gpt Ag).
  • Bacanora Lithium PLC. Informed the company has a strong cash balance of US$44.4 M as of June 30, 2020, and retains a senior debt facility of US$150 M. At the Sonora Lithium project in Sonora, work is focused on finalizing engineering so that construction may commence after the financing package is completed.
  • Golden Minerals Co. released final assays from its resource definition program at the Rodeo project in Durango. Some of the true width (tw) highlighted intercepts comprise 15.8 m @ 2.05 gpt Au, 16 gpt Ag; 15.3 m @ 1.09 gpt Au, 4 gpt Ag; 25.5 m @ 2.49 gpt Au, 6 gpt Ag; 25.8 m @ 1.22 gpt Au, 5 gpt Ag; 15.6 m @ 0.78 gpt Au, 3 gpt Ag; 15.0 m @ 0.74 gpt Au, 3 gpt Ag; 7.7 m @ 0.98 gpt Au, 3 gpt Ag; 34 m @ 1.63 gpt Au, 6 gpt Ag; 49.5 m @ 1.77 gpt Au, 22 gpt Ag; 9.6 m @ 0.97 gpt Au, 2 gpt Ag; 25.8 m @ 3.10 gpt Au, 10 gpt Ag; 24.5 m @ 1.32 gpt Au, 5 gpt Ag; 28.0 m @ 1.96 gpt Au, 8 gpt Ag; 17.5 m @ 1.36 gpt Au, 5 gpt Ag. The resource the company is trying to improve was defined in 2017 at 0.4 M tonnes @ 3.3 gpt Au, 11 gpt Ag, containing 46 K Oz Au, 200 K Oz Ag.

ON DEALS AND CORPORATE ISSUES

  • Candente Gold Corp. signed the definitive agreement with Magellan Acquisition Corp. to earn up to 100% interest in the San Dieguito de Arriba beneficiation plant and the rights on the El Dorado property, both in Nayarit.
  • Silver One Resources Inc. entered into a letter of intent (LOI) with Plymouth Realty Capital Corp. to sell all its Mexican silver properties. In consideration for the properties Plymouth is to pay $1 M in cash and $5 M in shares. Plymouth Realty Capital will also change its name to Silverton Metals Corp. (Peñasco Quemado, Sonora; La Frazada, Nayarit; Pluton, Durango).
  • Dyna Resource Inc. announced the filing on August 28, 2020 in Dallas county, Texas, a petition for recognition of the USD$48 M foreign judgement against Goldgroup Resources Inc. in order to recognize in USA the judgment obtained in Mexico against Goldgroup Resources Inc. (the judgment relates to a legal challenge for the ownership of the San José de Gracia project in Sinaloa).
  • Silver Spruce Resources Inc. has “retained Mexico-based legal counsel to lead the discussions with representatives of the surface landowners of Pino de Plata in order to re-negotiate access rights to the ranch that covers the Pino de Plata project area”. The company’s purchase rights contract is now under a force majeure clause until access rights are granted by surface owners to continue exploration.
  • Reyna Silver Corp. announced the acquisition of the 300 ha La Reyna project in Chihuahua. The property is in the Cusihuiriachi (Cusi) silver district of low sulfidation epithermal mineralization. “La Reyna proper is a nearly north-south trending structure traceable as vein and altered outcrops for 4 km across the property. Two historic (1890s) shafts (La Reyna and Princesa) that extend to 133-150m depths exploited high-grade silver-rich mineralized shoots 2-5 m wide in the late 1800s”. The deal involves US$1.3 M in staged cash payments over four years and a 2.5% NSR. The payment on singing was US$30K that is to be followed by US$45 K in 6 months, US$75 K in 12 months, US$75 K in 18 months, US$120 K in 24 months, US$120 K in 30 months, US$150 K in 36 months and US$685 K in 48 months.

ON SOCIAL RESPONSIBILITY

  • Fortuna Silver Mines (San José mine in Oaxaca) signed an agreement with the Oaxaca Health Secretary and the San José del Progreso Municipality to help the community with the pandemic health emergency.
  • Minera Autlán donated 4,000 tree saplings to the Teziutlan Municipality in Puebla.
  • Minera Saucito informed on actions related to the fight against the pandemic in the Fresnillo Municipality in Zacatecas.
  • Industrias Peñoles celebrated 13 years of the inauguration of the Museum of Metals.
  • Industrias Peñoles informed in measures the company implements to reduce the use of water, and its treatment afterwards.
  • Fresnillo PLC is to distribute 20,000 face masks in Zacatecas city.

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: The mineralized porphyry from Cerro San Pedro, San Luis Potosí. Picture by Jorge Cirett.

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

By Jorge Cirett

During the 36th week of the year (August 31st to September 6th, 2020), at least 22 press releases were announced by companies working in Mexico. The dominant news on the country relating to the mining industry during the week, was the cancellation of the Sub Secretary of Mining (created during the last presidential term), headed by Francisco Quiroga, who had gained the trust of the enterprises and organizations of the industry by his relentless and hands-on daily effort to help better the mining industry in Mexico. He will be missed, unlike his predecessor. ON MEXICO ISSUES, the Sub Secretary of Mining was cancelled, its role absorbed within the Economy Secretary; loud complaints from the mining industry organizations followed, to fall on deaf ears. Pending investments in mining for the near future of US$1991 M. The Sonora Mining Fund Committee approved the investment of US$3.5 M on an aqueduct. FIFOMI has US$164 M in current credits to the mining industry. The Mining Fund is gone, for the purposes it was created for. (This is a measure taken by the actual federal government against the opinion of all mining enterprises and organizations. In my personal point of view, it opens the way to the use of the funds in a very centralized manner, same that can be exploited for political gains by those in power. There was just no need for this change). The very Mexican “illegal mine blockade roulette” now struck Equinox’s Los Filos mine in Guerrero. ON EXPLORATION, in Baja, Comet Resources updated on its Santa Teresa property. In Sonora, Redstar Gold updated on its Cumaro project. In Sinaloa, Viszla Resources released drilling results at Panuco. In Veracruz, Azucar Minerals released drilling results from El Cobre.  ON MINING, Santacruz Silver reported second quarter 2020 results. Equinox Gold’s Los Filos mine in Guerrero is affected by an illegal blockade. ON FINANCING, seven companies made announcements regarding the opening or closing of financing rounds: Southern Silver Exploration ($456 K), Barksdale Resources ($6.3 M), GoGold Resources (C$30 M), Silver Dollar Resources ($10.5 M), Inomin Mines ($400 K), Americas Gold and Silver (C$39.4 M), Alien Metals (£1.25 M). Gold79 Mines, Golden Tag Resources and Redstar Gold granted stock options to officers, directors and consultants. ON RESOURCES AND DEVELOPMENT, Silver Bull Resources updated on the legal battle and an illegal blockade at its Sierra Mojada project in Coahuila. ON DEALS AND CORPORATE ISSUES, Odyssey Marine Exploration received funds for the legal battle to obtain the government permit to mine its Exploraciones Oceánicas phosphate project offshore Baja California Sur. Tarachi Gold acquired the Juliana group of properties, increasing the size of its Tarachi property to 3,708 hectares. Inomin Mines executed the agreement on the acquisition of the La Gitana and Peña Blanca properties in Oaxaca. ON SOCIAL RESPONSIBILITY. Peñasquito, First Majestic, Minera San Javier, Alamos Gold and SilverCrest informed on donations, community involvement and safety measures on the areas near their operations.

ON MEXICO ISSUES

  • Francisco Quiroga, in his last day as Sub-Secretary of Mining, called for the AIMMGM (Asociación de Ingenieros Mineros, Metalurgistas y Geólogos de México) to play a leading role in the transformation of the industry and its relationship with the public sector.
  • The AIMMGM installed the newly elected board for the 2020-2022 period.
  • The Secretaría de Economía announced the cancellation of the Mining Sub-Secretary, onward from September 1st, 2020.
  • The cancellation of the Mining Sub-Secretary by the federal government brought loud complaints from companies and organisms within the industry (not that these complaints are to be attended to). The Cámara Minera de México (CAMIMEX), the Asociación de Ingenieros Mineros, Metalurgistas y Geólogos de México (AIMMGM), the Mining Task Force of the Cámara de Comercio del Canadá en México, the Sonora, Chihuahua, Guerrero, Sinaloa and Zacatecas Mining clusters, the Colegio de Ingenieros de Minas, Metalurgistas y Geólogos de México (CIMMGM) and the organization Mujeres en la Minería (WIM Mexico) extended its congratulations to Francisco Quiroga, departing Mining Sub-Secretary and expressed the profound disagreement for the disappearance of the Sub Secretary of Mining.   
  • Camimex (Cámara Minera de México) informed Mexico has a list of projects that add up to $1,991 M dollars in programmed investment. Amongst these are the Campo Morado mine in Guerrero, La Yaqui Grande in Sonora, as well as the Orysivo project in Chihuahua, the Centauro Profundo project in Sonora and the Media Luna project in Guerrero. Mexico had a production peak of 123,364 kg of gold in 2015, same that has declined to 73,451 kg in 2019.
  • The Mining Fund Sonora Committee approved the investment of MX$75 M pesos (US$3.5 M) for the construction of the Macoyahui-Alamos aqueduct. The project includes 24.5 Km of PVC tubing and five pumping stations.
  • INEGI informed the mining activity is resuming after the COVID lockdown. Sulphur, iron,, lead, gold, copper, silver, fluorite are among the commodities that have seen their production significantly increased. In January 2020 the industry generated 381,456 direct jobs and more than 2 M indirect jobs, according to the IMSS.
  • Request for the Mining Sub Secretary to stay in Chihuahua by Omar Bazán, deputy, and the Chihuahua Mining Cluster.
  • The Fideicomiso de Fomento Minero (FIFOMI) has $3,530 M pesos (US$164 M) on current credits to the mining sector.
  • The Mining Fund is gone, for the purposes it was created for. Graciela Márquez, Economy Secretary confirmed the resources no longer are going to be distributed among mining municipalities, but through different agreements with government organisms and federal programs to help mining communities.
  • Graciela Márquez, Economy Secretary, stated the disappearance of the Mining Sub-Secretary is not to affect the mining industry as all relevant structures stay in place (We beg to disagree).

ON EXPLORATION

  • Radius Gold Inc. informed on exploration at its Amalia and Plata Verde projects in Chihuahua. At Amalia, “phase 4 drilling funded by JV partner Pan American Silver remains on stand-by due to COVID-19. Semarnat, the permitting agency in Chihuahua, has returned to work on a limited scale and Pan American has recently provided updated information requested by Semarnat”. At Plata Verde, there is advance in the signing of agreements to expand the property package. “The next phase of field work will consist of geophysical programs to identify feeder systems and expansions of the known mineralization under the thin (>100m) cover volcanics”.
  • Redstar Gold Corp. announced its Cumaro project in Sonora is adjacent to SilverCrest’s Picacho property. “Previous drilling on SilverCrest Metals’ Picacho vein, two kilometres north of the Cumaro property, returned intersections including 13.9 metres at 16.22 grams per tonne (g/t) gold and 33.9 g/t silver in hole PDD07-013, and 4.1 metres at 3.86 g/t gold and 35.0 g/t silver…” in other hole on the Dos Amigos vein. The company believes there is a down-thrown block on the eastern side of the property, where the extensions of the veins exposed on the western side could be present on a much shallower level.
  • Comet Resources Ltd. Informed in a corporate presentation on its Santa Teresa property in Baja California. Santa Teresa is a high-grade mesothermal lode gold deposit (ie.- orogenic gold) with an existing NI 43-101 inferred resource of 64 K Oz Au capped at 20 gpt Au, with a cutoff grade of 4 gpt Au and average grade of 8 gpt Au. Historical drilling has intersected quartz veins grading up to 958 gpt Au over 1 m, and multiple other drill results above 30 gpt Au. The deposit is open along strike and at depth.
  • Vizsla Resources Corp. announced a fourth new discovery at its Panuco project in Sinaloa. The first four drill holes at the Tajitos vein have been completed on the Cinco Señores vein corridor. Highlighted intercepts from the three first drill holes comprise 4.5 m @ 1,200 gpt Ag, 7.29 gpt Au (including 1.15 m @ 2,210 gpt Ag, 16.13 gpt Au); 1.15 m @ 812 gpt Ag, 4.59 gpt Au. ”The Tajitos vein zone is composed of a quartz breccia vein with an early white locally banded quartz supporting andesite lithic clasts, followed by a later white to greyish quartz supporting brecciated clasts of earlier white quartz veins. This zone was then cut by a later white to clear quartz vein with local dark bands or patches of fine-grained sulphides that is cutting a zone of quartz psuedomorphs after bladed calcite and pink rhodochrosite. The better grades are in the earlier breccias associated with dark bands or dark patches of very fine-grained disseminated sulphides. This vein zone is hosted in a package of andesite flows and tuffs”.
  • Azucar Minerals Ltd. released drilling results from its El Cobre project in Veracruz. The holes in the Primo target returned 23.75 m  @ 0.22 gpt Au, 0.08% Cu; 8.50 m @ 0.71 gpt Au, 0.24% Cu; 123.50 m @ 0.14 gpt Au, 0.14% Cu. Azucar is currently preparing its facilities  and implementing the health protocols required to enable a safe return to work.

ON MINING

  • Santacruz Silver Mining Ltd. Reported operating and financial results for the second quarter 2020. At Veta Grande in Zacatecas, 37.1 K tonnes were milled to produce 204.6 K Oz AgEq at cash cost $17.68 per Oz AgEq and an AISC of $19.70 per Oz AgEq. At Rosario in San Luis Potosi, 20.8 K tonnes were milled to produce 141.4 K Oz AgEq at cash cost $14.23 per Oz AgEq and an AISC of $15.59 per Oz AgEq.
  • Equinox Gold Corp. reports that “mining activities at its Los Filos mine in Mexico have been suspended since September 3, 2020 as the result of an illegal road blockade by members of the nearby Carrizalillo community. The individuals allege non-compliance with the community social collaboration agreement signed in 2019. The mine remains staffed with a reduced workforce to maintain appropriate safety, security and environmental systems. Equinox Gold is in active discussions with the Carrizalillo community leaders to resolve the issues”.

ON FINANCING

  • Gold79 Mines Ltd. Approved the granting of 6 M stock options to officers, directors and consultants of the company (Taviche, Oaxaca).
  • Southern Silver Exploration Corp. plans to conduct a non-brokered private placement to raise $456 K (Cerro Las Minitas, Durango).
  • Golden Tag Resources Ltd. Granted 9.9 M incentive stock options to management and directors (San Diego, Durango).
  • Barksdale Resources Corp. increased the size of its non-brokered private placement financing for gross proceeds of up to $6.3 M (San Javier, Sonora).
  • GoGold Resources Inc. entered into an agreement on a bought deal basis with a syndicate of underwriters for the acquisition of shares for gross proceeds of C$30 M (Los Ricos, Jalisco).
  • Silver Dollar Resources Inc. has arranged a non-brokered private placement to raise up to $10.5 M (La Joya, Durango).
  • Redstar Gold Corp. announced the granting of 20.73 M stock options to directors, officers and consultants of the company (Cumaro, Oso Negro and La Lola, Sonora).
  • Inomin Mines Inc. announced a non-brokered private placement to raise up to $400 K in gross profits (La Gitana, Oaxaca).
  • Americas Gold and Silver Corp. closed its previously announced and up-sized bought deal financing for aggregate gross proceeds of C$39.4 M (Cosalá, Sinaloa).
  • Alien Metals Ltd. announced that it has conditionally raised £1.25 M (Los Campos and Los Celsos, Zacatecas).

ON RESOURCES AND DEVELOPMENT

  • Silver Bull Resources Inc. updated on its Sierra Mojada project in Coahuila. Sociedad Cooperativa de Exploración Minera Mineros Norteños, S.C.L. (Mineros Norteños), the group which is illegally blocking the Sierra Mojada project, has filed an appeal in the recently reopened Mexican courts to try and overturn a favorable ruling for Silver Bull on their lawsuit against the Company filed in 2014. The company sees the whole lawsuit as frivolous (looking for payment of an NSR on production that has not taken place), and explains Mineros Norteños has lost already three rulings, and Silver Bull expects a final ruling on the case, which cannot be appealed by Mineros Norteños, to be handed down from the courts within the next 6 months. Mineros Norteños has illegally blocked access to the project since September 2019.

ON DEALS AND CORPORATE ISSUES

  • Odyssey Marine Exploration Inc. had a financing transaction that provides the company with $11.3 M, a portion of which will be used to fund operating expenses of the “Exploraciones Oceánicas” phosphate project offshore Baja California Sur. “The investor group was anchored by Odyssey’s existing NAFTA funding partner, Poplar Grove LLC. Poplar Grove is managed by Drumcliffe LLC, a private investment management firm that oversees high-value litigation funding portfolios of over $14 billion in claims”.   
  • Telson Mining Corp. announced the resignation from its board of directors by Remigio Martínez Muller.
  • Tarachi Gold Corp. entered into an arm’s length option agreement with Exploradora Cobre de Bacanoras S. de R.L. de C.V. to acquire 100% interest in the group of mining concessions known as the Juliana, Juliana No.1, Juliana No.2 and Las Morita mining concessions covering 1,140 hectares in Sonora. “Tarachi’s projects now consist of the San Javier, Pretoria, Chivitas, Jabali, Juliana, Texana and Tarachi concessions for a total of 3,708 ha in the Mulatos District. The deal involves the payment of $40 K on the execution date, $30 K on six months, $30 K on 12 months, $30 K on 18 months, $60 K on 24 months, $60 K on 30 months, $150 K on 36 months, $150 K on 42 months, $150 K on 48 months, $700 K on 54 months and $700 K on 60 months, and the issue of 4 M common shares, 400 K of those on the execution date, 1 M shares on 12 months, 1 M shares on 24 months and 1.5 M shares on 26 months. The transfer of the concessions is subject to a 3% NSR from production, with the company having the right to buy at any time 1/3 of the NSR for $1 M.
  • Inomin Mines Inc. announced the execution of the agreement to acquire the La Gitana and Peña Blanca projects in Oaxaca. Inomin is acquiring 100% interest on both properties for 1 M common shares of Inomin, $25 K cash and the grant of 1.5 % NSR on the Peña Blanca property, of which 0.5% can be bought at any time for $1 M.

ON SOCIAL RESPONSIBILITY

  • Peñasquito continues to apply bio-security protocols. Up to date 27,359 fast test have been applied in the facilities and neighboring communities, resulting in six confirmed cases.
  • First Majestic Silver Corp. invested during 2019 US$3.8 M in local community, health youth programs, infrastructure and access to clean water. Over 25,600 medical consultations were provided in local communities. Planted 105,730 native plant species through reforestation initiatives .
  • Minera San Javier (NewGold) donated personal medical equipment to hospitals in San Luis Potosí, and personal medical equipment and sanitization supplies to the Cerro San Pedro municipality health clinics. The company continues to deliver food pantries to persons in need in Planta del Carmen, La Zapatilla, Monte Caldera, Cuesta de Campa, Calderón, Portezuelo and Cerro San Pedro.
  • Alamos Gold donated medical equipment and a mobile unit to the Sahuaripa DIF (Desarrollo Integral de la Familia) in Sonora.
  • SilverCrest’s Las Chispas project has accumulated 600 days without accidents in Sonora.

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: The whitish ledge from left to center is a silicified paleo water table in the Mexican Altiplano. Picture by Jorge Cirett.

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

By Jorge Cirett

During the 34th week of the year (August 17th to August 23rd, 2020), at least 36 press releases were announced by companies working in Mexico. To note, twelve of those were either opening or closing rounds of financing, several presenting oversubscriptions. Even with the difficulties to assign the total amount to any given week, the announcements on this period add up to $38.3 M and C$90.5 M, standing out Chesapeake’s $20 M and Americas Silver C$35 M. ON MEXICO ISSUES, the Guanajuato Mining Cluster is being consolidated; The MIA on Camino Rojo in Zacatecas has been approved; A new Mining Museum opens in Zimapan, Hidalgo; Francisco Quiroga, Mining Undersecretary stressed community acceptance is vital for mining companies; Minera Peñasquito and the Cedros Ejido have signed a new agreement; Foreign investment decreased during the first half of 2020; Neida Patricia Madrid, is the first large shovel female operator in Mexico; The Mexican mining industry lost 4 billion dollars in two months. ON EXPLORATION, in Sonora, Tarachi Gold released assay results from trenching at its Tarachi project. In Zacatecas, VanGold Mining accessed the #6 level on the Pinguico mine. Advance Gold is extending the IP survey at Tabasqueña. ON MINING, Odyssey Exploration continues to seek a favorable resolution on the litigation to obtain the development permit for its offshore Exploraciones Oceanica project in Baja California Sur. Americas Silver informed the illegal blockade at its Cosalá complex in Sinaloa was lifted, and the process for new union elections is coming. Mexus Gold is acquiring more heavy equipment for its Santa Elena mine in Sonora. Premier Gold informed of positive cash flow under its new reduced production plan at Mercedes, in Sonora. ON FINANCING, twelve companies made announcements regarding the opening or closing of financing rounds: Golden Tag ($7 M), VanGold Mining ($3.97 M), Southern Silver Exploration (C$14 M), Sable Resources (C$9 M), Tarachi Gold (C$9.49 M), Minera Alamos (C$13 M), Defiance Silver (C$7 M), Americas Silver (C$35 M), Chesapeake Gold ($20 M), Orex Minerals ($5.5 M), Monarca Minerals (C$3 M), Silver Spruce ($1.8 M). ON RESOURCES AND DEVELOPMENT, Azure Minerals has sent samples for metallurgical studies from the Mesa de Plata deposit at its El Alacrán project in Sonora. Prime Mining released trench results from Los Reyes, in Sinaloa. Discovery Metals released drilling results from high-grade veins from its Cordero deposit in Chihuahua. Aura Minerals updated on exploration efforts at its Aranzazu project in Zacatecas. GoGold Resources released results from six more holes at Los Ricos North, in Jalisco. ON DEALS AND CORPORATE ISSUES, Southern Silver entered into a definitive agreement with Electrum Global Holdings to acquire Electrum’s interest in the Cerro Las Minitas project in Durango. Evrim Resources and Renaissance Gold completed its merger and name change to Orogen Royalties. Sun River Gold has increased its ownership in an additional 5% NPI of the mine tailings project at El Oro, Estado de Mexico. VanGold Mining signed an agreement to re-purchase the underlying royalties on its El Pinguico project in Guanajuato. Zanzibar Gold appointed Sergio Trelles as special advisor to the board. Megastar Development amended the option agreement to extend the dates for expenditures at the Rama de Oro, Yautepec and Magdalena projects in Oaxaca. ON SOCIAL RESPONSIBILITY. Grupo Mexico, Fresnillo PLC, Peñoles, Minera Media Luna and Minera Fresnillo informed on donations and community involvement measures on the areas near their operations.

ON MEXICO ISSUES

  • The Guanajuato Mining Cluster is being consolidated. The move seeks to develop local industries as service providers for the mining industry.
  • SEMARNAT (the Mexican environmental agency) approved the Environmental Impact Report (MIA) of Orla Mining to develop the Camino Rojo Oxide project in Zacatecas.
  • The Mining Museum has been inaugurated in Zimapan, Hidalgo.
  • Francisco Quiroga, sub secretary of Mining, in the Camimex organized “Mining in the New Normality” forum, stressed that the main challenge for mining companies is to work on its acceptance by communities.
  • Minera Newmont announced the signing of the agreement between the company and the Cedros Ejido in Peñasquito, Zacatecas. To work free of illegal blockades, the company is to solve the damage to the El Socavon spring, build infrastructure to promote physical activities, develop a social area, build a civic plaza and revise the temporal occupation agreements of the mining unit at Cedros. To reach this accord 60 workshops were held with the mediation of the governor Alejandro Tello, Francisco Quiroga (Mining sub secretary) and the Secretary of the Interior Olga Sanchez.
  • The foreign direct investment in Mexico decreased during the first half of 2020 in sectors like mining, electricity and tourism. The economic crisis has coupled with changes in the regulation of the electricity generation market and the cancellation of already permitted developments like the investment by Constellation Brands and its Brewery in Baja California, to reduce the attraction to invest in the country.
  • First woman to be operator of a mechanical shovel in Mexico, Neida Patricia Madrid, Minera Buenavista del Cobre employee is the first woman to operate this 22 m high, 12 m wide machine used to load ore into off-road dump trucks. Born in Cananea, Sonora, Neida Patricia was selected for training after working for several years as dump truck operator.
  • The Mexican mining industry lost 4 billion dollars in two months, according to Francisco Quiroga, Mining Sub-secretary. Even so, he pointed that the industry has benefited of a 17% depreciation of the Mexican peso, and the rise on the price of metals, like silver in 58%, gold in 28%, and copper in 41%. Silver production was expected to reach 324 M Oz, but after the Coronavirus emergency lockdown, the outlook has been reduced to 270 million ounces, although with a much better price.  

ON EXPLORATION

  • VanGold Mining Corp. informed the continuation of its summer program at El Pinguico project in Zacatecas. Rehabilitation work has now safely accessed the #6 level, which is believed to have been inaccessible since 1913. Work is underway to access also the #5 and #7 levels. Sampling of the bottom of the backfill on the #7 level is expected to be possible.
  • Advance Gold Corp. informed four additional lines of induced polarization are being surveyed to increase detail on an anomaly at its Tabasqueña project in Zacatecas. Drilling continues, with samples to be sent to the lab once the current hole being drilled is completed.
  • Tarachi Gold Corp. released high-grade results from channel sampling at La Dura historic underground mine on the Jabalí concession pf the Tarachi project in Sonora. Rock-saw samples returned 62.55 m @ 6.34 gpt Au (including 2.0 m @ 42.65 gpt Au); 9.4 m @ 0.63 gpt Au; 4.35 m @ 4.42 gpt Au; 6.25 m @ 1.13 gpt Au.   

ON MINING

  • Odyssey Marine Exploration Inc. reported results for the second quarter 2020. During the period, the focus has been seeking the advance of its offshore “Exploraciones Oceanicas” phosphate project in Baja California Sur. “Odyssey’s legal teams are working two separate, but concurrent processes, while Odyssey continues to work through diplomatic channels in attempts to reach a mutually beneficial agreement with Mexico .…… While we are hopeful an agreement will be reached, we must continue to pursue our North American Free Trade Agreement (NAFTA) claim against Mexico to protect our shareholders’ rights”.
  • Americas Gold and Silver Corp. reported consolidated financial and operational results for the second quarter of 2020. The illegal blockade that had been in place at the Cosalá operations in Sinaloa since the end of January 2020 “has been resolved favourably without negotiation or compromise with those responsible for the illegal action…. The Company has worked with government authorities to secure a democratic election to ratify a legitimate union to represent its workers which is now set for September 9, 2020”. The company finished the earn-in agreement for the San Felipe project (Sonora) with Hochschild, by providing notice and agreeing to pay the remaining $3.75 M plus VAT in common shares.
  • Mexus Gold US. Informs on the acquisition of more mining equipment for its Santa Elena mine in Sonora, The company aims to increase its mine output to 500 tonnes per day to the leach pad.
  • Premier Gold Mines Ltd. Informed the Mercedes mine in Sonora is generating positive cash flow under its revised production plan. “Following a two-month suspension of operations due to the COVID-19 pandemic, mine operations resumed under a new simplified production plan developed by the Mercedes team….. Ongoing exploration at Mercedes has returned positive results and is prioritized on extending mine life through the growth of reserves in proximity to existing mine workings and the delineation of future resources at the San Martin and Marianas zones. Results to-date have been positive”.

ON FINANCING

  • Golden Tag Resources Ltd. closed its non-brokered private placement for total gross proceeds of $7.0 M. Eric Sprott participated with the acquisition of 10.7 M shares. A commission fee of C$345.7 K was paid to Red Cloud Securities Inc., PI Financial Corp., PowerOne Capital Markets Limited, Canaccord Genuity Corp. y Haywood Securities Inc. (San Diego-Velardeña, Durango).
  • VanGold Mining Ltd. closed the final second tranche of its non-brokered private placement for gross proceeds of $278.6 K, adding up to total gross proceeds of $3.97 M (El Pinguico, Zacatecas).
  • Southern Silver Exploration Corp. has closed a brokered placement for C$10 M and a non-brokered placement for gross proceeds of C$4 M. The company paid fees to agents of $312 K, 1.56 M compensation options, a corporate finance fee of $237.9 K and 1.19 M corporate finance options.
  • Sable Resources Ltd. increased the size of its private placement to up to C$9 M (Margarita and Vinata, Chihuahua).
  • Tarachi Gold Corp. closed its non-brokered private placement, which was oversubscribed, for gross proceeds of CAD$9.49 M (Tarachi Gold, Sonora).
  • Minera Alamos Inc. entered into an agreement with National Bank Financial Inc. on a bought deal private placement for gross proceeds of approximately C$10 M. Later on the week Minera Alamos produced another press release where the private placement was increased to C$13 M (Santana, Sonora).
  • Defiance Silver Corp. entered into an agreement with Red Cloud Securities Inc. for a private placement to raise up to C$7 M (San Acacio, Zacatecas).  
  • Americas Silver and Gold Corp. announced it is increasing the size of its previously announced offering from C$25 M to C$35 M in gross proceeds (Cosalá, Sinaloa).
  • Chesapeake Gold Corp. closed its previously announced non-brokered private placement for gross proceeds of $20 M. Eric Sprott acquired $12.5 M in shares, same that coupled with prior shares in his possession amount to 15.5% of the issued and outstanding shares of Chesapeake.  “The net proceeds from the Private Placement will be used to undertake Metates metallurgical test work and ongoing regional exploration and for general working capital” (Metates, Durango).
  • Orex Minerals Inc. closed its previously announced non-brokered private placement to Eric Sprott, for gross proceeds of $5.5 M. The investment by Eric Sprott represents 19.6% ownership in non-diluted basis, and 26.8% on partially diluted basis (Sandra, Durango).
  • Monarca Minerals Inc. announced the closing of the previously announced non-brokered private placement, for gross proceeds of C$3 M. Aggregate fees of C$212 K were paid, and 4.24 M of finders warrants issued (Tejamen, Durango).
  •  Silver Spruce Resources Inc. increased and closed its previously announced private placement, for gross proceeds of $1.8 M. Finders fees of $138.3 K and 165 K broker warrants were paid (Mezquite, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Azure Minerals Ltd. has sent samples from its Mesa de Plata deposit at its Alacrán project (Sonora) for advanced metallurgic testwork. Previous metallurgic studies highlighted the presence of romeite, a silver-rich mineral that neither floats nor leaches, and subsequent studies point to that mineral being amenable to recovery by gravity separation methods. Three reverse circulation holes were drilled specifically to collect high-grade samples containing silver-rich romeite, which intercepted 10.5 m @ 805 gpt Ag (including 6 m @ 1,284 gpt Ag); 15.0 m @ 677 gpt Ag (including 3.0 m @ 1,832 gpt Ag); 10.5 m @ 774 gpt Ag. “If processing by a combination of gravity separation, flotation and leaching is successful, the Company is aiming for total silver recoveries of ~90%”.
  • Prime Mining Corp. reported results of ongoing surface sampling on the Los Reyes project, Sinaloa. One trench returned 42.0 m  (18.0 m estimated true width, or TW) @ 1.93 gpt Au, 26 gpt Ag, including 4.0 m TW @ 7.46 gpt Au, 98 gpt Ag; Other trenches returned: 16.5 m @ 1.28 gpt Au, 103 gpt Ag; 16.5 m @ 0.89 gpt Au, 14 gpt Ag; 42.0 m @ 0.85 gpt Au, 20 gpt Ag; 52.5 m @ 0.9 gpt Au, 13 gpt Ag; 33.0 m @ 1.0 gpt Au, 20 gpt Ag; 10.5 m @ 2.01 gpt Au, 7 gpt Ag.
  • Discovery Metals Corp. released results from four diamond drill holes targeting “extensive” veins at its Cordero project in Chihuahua. These holes are part of a 55,000 m program that commenced on September 2019, of which 22,600 m have been completed in 62 holes. Highlighted intercepts comprise: 4.7 m @ 635 gpt Ag, 0.15 gpt Au, 12.3% Pb, 5.3% Zn (including 1.9 m @ 1,035 gpt Ag, 0.06 gpt Au, 20.0% Pb, 6.4% Zn); 5.6 m @ 135 gpt Ag, 0.18 gpt Au, 2.7% Pb, 1.6% Zn); 1.3 m @ 587 gpt Ag, 0.67 gpt Au, 9.4% Pb, 2.4% Zn; 2.0 m @ 846 gpt Ag, 0.33 gpt Au, 2.6% Pb, 0.1% Zn; 0.7 m @ 433 gpt Ag, 0.12 gpt Au, 1.4% Pb, 7.1% Zn. Four rigs are currently operating at the site.
  • Aura Minerals Inc. provided an update of exploration at its Aranzazu mine in Zacatecas. “The deposit at Aranzazu consists of a tertiary age Gold-Copper-Silver skarn type mineralization subdivided in three main zones, Mexicana, Glory Hole and Cabrestante, striking 1.2 kilometers along a structure….”. During 2020 the company intends to perform infill drilling in the Glory Hole zone, an extension drill program at the Glory hole and Cabestrante zones and important exploration effort mainly in El Cobre skarn target 3 km NW form the Aranzazu mine. Highlighted TW drill intercept results comprise: 11.37 m @ 0.90 gpt Au, 0.88% Cu, 14 gpt Ag; 43.02 m @ 3.68 gpt Au, 6.46% Cu, 95 gpt Ag; 24.01 m @ 4.88 gpt Au, 8.6% Cu, 127 gpt Ag; 26.79 m @ 1.20 gpt Au, 2.09% Cu, 22 gpt Ag; 10.72 m @ 1.78 gpt Au, 1.12% Cu, 16 gpt Ag, 6.0 m @ 0.93 gpt Au, 1.70% Cu, 17 gpt Ag; 2.0 m @ 2.21 gpt Au, 2.94% Cu, 36 gpt Ag.
  • GoGold Resources Inc. released assay results from six more drill holes at La Trini deposit on its Los Ricos North project in Jalisco. Highlighted core-length intercepts comprise: 29.4 m @ 1.77 gpt Au, 122 gpt Ag (including 8.8 m @ 5.11 gpt Au, 286 gpt Ag); 28.4 m @ 1.07 gpt Au, 103 gpt Ag; 20.7 m @ 0.16 gpt Au, 58 gpt Ag; 25.2 m @ 0.25 gpt Au, 94 gpt Ag; 19.0 m @ 0.1 gpt Au, 31 gpt Ag; 32.2 m @ 0.62 gpt Au, 79 gpt Ag; 15.7 m @ 0.38 gpt Au, 85 gpt Ag.

ON DEALS AND CORPORATE ISSUES

  • Southern Silver Exploration Corp. has entered into a definitive agreement with Electrum Global Holdings L.P. to acquire Electrum’s 60% interest in the Cerro Las Minitas project in Durango for current and future payments totaling US$15 M. On the closing of the date of the transaction the company has to pay US$5 M and issue US$2 M in shares.  
  • Evrim Resources Corp. and Renaissance Gold Inc. announced the completion of its merger, and the concurrent name change to Orogen Royalties Inc. “Underpinning Orogen’s strategic royalty focus are two organically created cornerstone assets: (i) a 2% net smelter return royalty (“NSR”) on the Ermitaño West gold-silver deposit in Sonora, Mexico, where production by First Majestic Silver Corp. is slated to begin in 2021(1); and (ii) a 1% NSR on the Silicon gold project in Nevada, U.S.A., which is being advanced by AngloGold Ashanti S.A.”.
  • Candente Gold Corp. announced that Sun River Gold has made the final payment of US$111 K to increase their ownership in an additional 5% NPI (Net Profit Interest) of the Mine Tailings at El Oro, Estado de México. “Sun River has the option to acquire 100% of the Tailings Project by making staged payments totalling US$300,000 (paid), bring the tailings into commercial production by October 31, 2021, and grant to the Company a 10% NPI, Life of Mine royalty (the “Candente Royalty”) as well as the Municipality’s 8% NPI on production from the properties. Sun River had the right to reduce the NPI payable to the Company to 5% by paying an additional US$200,000 in payments (now paid)”.
  • VanGold Mining Corp. signed an option agreement to re-purchase three underlying royalties on its El Pinguico project in Guanajuato. The company will pay C$1.68 M (C$5 K paid) and issue 3.75 M units of VanGold to Exploraciones Mineras del Bajio, S.A. de C.V.. The royalties to be scraped are: 1) a 4% NSR on all broken material, 2) a 3% NSR on all in-situ newly discovered material and 3) a 5% NPI on all in-situ newly discovered material. “Upon exercise of the Option, VanGold’s Mexican subsidiary, Obras Mineras El Pinguico, S.A de C.V., will own its undivided 100% interest in the El Pinguico silver and gold project free from royalties, save for a 15% net profits royalty in favour of EMBSA solely on the existing above ground and underground stockpiles of mineralized material. There will be no other royalties, net smelter returns or otherwise, on the El Pinguico project including the existing stockpiled material”.
  • Zanzibar Gold Inc. announced the appointment of geologist Sergio A. Trelles Monge as a special advisor to the board of the company. “Mr. Trelles was the Director General of Mining Promotion of the State of Sonora, Assistant Director of Mining Resources of Mexico’s Geological Survey. He was also President of the Association of Mining Engineers, Metallurgists and Geologists of Mexico, Civil Association [Asociación de Ingenieros de Minas, Metalurgistas, y Geólogos de México A.C]. and Chairman of the College of Mining Engineers, Metallurgists and Geologists of Mexico, Civil Association [Colegio de Ingenieros de Minas, Metalurgistas y Geólogos de México A.C].”.
  • Megastar Development Corp. has amended the option agreements to acquire 100% interest in the Rama de Oro, Magdalena and Yautepec projects in Oaxaca, by extending the due dates for the exploration expenditures on each project. “The Rama de Oro expenditure commitment of US $350,000 was extended from May 9, 2020 to May 9, 2022 and the Magdalena and Yautepec expenditure commitments, in the aggregate amount of US $310,000, were extended from June 1, 2021 to December 1, 2021. In consideration of the extension, the Company has agreed to pay an aggregate US $12,500 to the vendor, who is a director of the Company”.  

ON SOCIAL RESPONSIBILITY

  • Grupo Mexico donated eight thousand tree seedlings to the Salamanca Municipality in Guanajuato.
  • Fresnillo PLC, through Minera Penmont and Innovec, has been sponsoring online workshops for kids in 22 communities of Caborca, Sonora.
  • Minera Penmont distributed 4,000 washable face masks in 22 communities of the Caborca municipality, and expects to deliver another 6,000 before the end of the week.
  • Peñoles has more than 1,500 local service providers in the La Laguna region (Torreón-Gómez Palacio-Lerdo). The company has 3,500 workers and generates another 2,000 full time jobs. No one was fired during the pandemic emergency, while 450 vulnerable employees were been sent home with full pay and are now in the process of returning to work following government directives.
  • Minera Media Luna built an artificial swamp for treatment of residual waters in Cocula, Guerrero.
  • Minera Fresnillo and Concretos Lanzados de Los Mochis donate meals for community dinner rooms 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: Artisanal kaolin mine above a low sulfidation epithermal system in Guanajuato. Picture by Jorge Cirett.

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

197 - copiaBy Jorge Cirett

During the 32nd week of the year (August 3rd to August 9th, 2020), at least 29 press releases were announced by companies working in Mexico. To note, six of those were either opening or closing rounds of financing, and although it is difficult to assign the total amount to any given week, the announcements on this period add up to $25.56 M and C$31.9 M (dominated by Chesapeake’s $20 M and Excellon’s C$17.9 M). ON MEXICO ISSUES, First Majestic has been sued by the Tax revenue agency (SAT). The mining and metallurgical production increased 9.6% on the previous month. Alberto López Santoyo ended its functions heading the Dirección General de Minas del Estado de Sonora. ON EXPLORATION, in Sonora, Colibri Resource updated on exploration at the Evelyn property in Sonora; Canuc Resources acquired a new claim at its San Javier project. In Sinaloa, Viszla Resources released drilling results from three more holes from its Panuco project. ON MINING, Endeavour Silver, Premier Gold, Torex Gold, Great Panther and Golden Minerals presented its financial or production reports for the Q2 2020. Mexus Gold is adding equipment to its Santa Elena mine in Sonora. ON FINANCING, six companies made announcements regarding the opening or closing of financing rounds, or financing related news: Canasil Resources ($1.56 M), Excellon Resources (C$17.9 M), Chesapeake Gold ($20 M), Impact Silver (C$7 M), Redstar Gold (C$7 M), Barksdale Resources ($4 M). ON RESOURCES AND DEVELOPMENT, Pan American Silver released a new resource estimate for its La Colorada skarn deposit in Zacatecas. Sailfish Royalty updated on the Gavilanes property in Durango. GoGold released more drilling results from its Los Ricos North project in Jalisco. ON DEALS AND CORPORATE ISSUES, Minera Alamos finalized the acquisition of the Cerro de Oro project in Zacatecas. Zanzibar Gold acquired the Sonora Gold property in Sonora. Inomin Mines executed the agreement to acquire the La Gitana project in Oaxaca. Barksdale Resources signed a LOI on the San Javier copper project in Sonora. Riverside Resources released the date of the incoming spin-out of El Capitan Mining. ON SOCIAL RESPONSIBILITY. Minera Saucito was certified on safety, work and health. Newmont Peñasquito, Fresnillo PLC and Torex Gold informed on health and community help activities in Zacatecas, Guerrero and Sonora.

ON MEXICO ISSUES

  • Primero Mining (First Majestic) was sued by the SAT (Tax Agency). The company is accused of failing to fully pay for taxes by selling metals even below market prices to related parties. Another charge relates to the 2010 acquisition of the San Dimas mine in Durango, allegedly using a lower price tag than its real value. Last May the company warned it was to file a reclamation against the Mexican government on a multinational panel.
  • The Mining and Metallurgic production in Mexico fell 16.9% in May, in an annualized basis, even if presenting a 9.6% increase on the April production.
  • Gold has had an hectic week, reaching an all-time new high of $2,069 per Oz Au, while silver peaked at $28.40. The price of gold has appreciated 35% in the year, while silver is at a seven-year high.
  • Francisco Quiroga, Mining subsecretary, informed production levels in Mexico are now back to the levels before the Coronavirus pandemic emergency that shut most operations.
  • Alberto López Santoyo finalized its function as head of the Dirección General de Minas del Estado de Sonora. He had been on the post since 2015.

ON EXPLORATION

  • Viszla Resources Corp. released drilling results from the Napoleon vein corridor at the Panuco project in Sinaloa. Highlighted core-length results comprise 27.0 m @ 47 gpt Ag, 0.65 gpt Au, 0.2% Pb, 0.8% Zn; 3.5 m @ 208 gpt Ag, 1.31 gpt Au, 0.3% Pb, 2.1% Zn; 8.5 m @ 48 gpt Ag, 0.32 gpt Au, 0.4% Pb, 1.1% Zn and 4.5 m @ 495 gpt Ag, 2.52 gpt Au, 0.5% Pb, 1.1% Zn in one hole. 22.6 m @ 141 gpt Ag, 1.05 gpt Au, 0.5% Pb, 0.8% Zn (including 1.0 m @ 619 gpt Ag, 5.54 gpt Au, 2.5% Pb, 3% Zn and 5.4 m @ 267 gpt Ag, 1.63 gpt Au, 0.4% Pb, 1% Zn) in a second hole. 3.4 m @ 41 gpt Ag, 1.39 gpt Au, 0.1% Pb, 0.4% Zn.
  • Canuc Resources Corp. acquired a 151 ha mining concession that enveloped the NE of its land holdings at San Javier, Sonora. “The Company believes that there is a distinct possibility that silver-gold bearing breccia and stockwork zones can be confirmed along this trend with current exploration initiatives“.
  • Colibri Resource Corp. updated on exploration at its Evelyn project in Sonora. Recent mapping and sampling of previously unmapped areas returned up to 27.5 gpt Au. Trenching has been recommended to establish geometry and potential length of mineralization, as well as a high resolution aeromagnetic survey.

ON MINING

  • Mexus Gold US. is adding equipment to its Santa Elena mine in Sonora (Not to mistake for First Majestic’s Santa Elena mine, also in Sonora). Assays on material from Pit #1 averaged 2.1 gpt Au, with results of up to 16 gpt Au. Mexus intends to increase the size of the heap leach pad to contain up to 500 K tonnes.
  • Endeavour Silver Corp. released its financial reports for the second quarter 2020. During the period 114.1 K tonnes were processed, producing 596.5 K Oz Ag, 5,817 Oz Au (1.06 M Oz AgEq) at cash cost $2.78, AISC $14.91. At Guanaceví in Durango, higher grade El Curso, Milache and SCS orebodies had a significant positive impact on the operating performance. At Bolañitos, Guanajuato, and El Compas, Zacatecas, re-start was slower due to smaller stockpiles and less stope preparation.
  • Premier Gold Mines Ltd. Presented 2020 Q2 results. No production was reported from its Mercedes mine in Sonora, which was closed during the pandemic emergency. The company revised its mining plan, reducing production rates from 2,000 tpd to 1,200 tpd, consolidating from five mining portals to one and operating the processing plant on a campaign basis.
  • Torex Gold Resources Inc. released financial results for Q2 2020. Production at El Limón Guajes mine in Guerrero was suspended in April and partially resumed in May with the processing of low grade stockpiles. Gold production was 59,508 Oz, including 38,892 Oz in June, at cash cost $740 and AISC of $1,015 per Oz Au.
  • Great Panther Mining Ltd. Reported financial results for the second quarter of 2020. From its Topia and Guanajuato mine Complex, 23.6 K tonnes were mined and 24.5 K tonnes milled @ 325 gpt AgEq.
  • Golden Minerals Co. announced its financial results for the last quarter. The company had a revenue of $1.2 M and a net operating margin of $0.8 M on the lease of its processing plant, and received $0.9 M from an earn-in agreement with Barrick and $2.8 M form an equity offering (Rodeo, Durango).

ON FINANCING

  • Canasil Resources Inc. closed its non-brokered private placement for total gross proceeds of $1.56 M. The placement was originally for $1 M (Nora, Durango).
  • Excellon Resources Inc. closed the previously announced private placement, raising total gross proceeds of C$17.9 M. The funds will be used to repay a US$6 M bridge loan and exploration of its projects (Platosa, Durango).
  • Chesapeake Gold Corp. arranged a non-brokered private placement for gross proceeds of $20 M (Metates, Durango).
  • Impact Silver Corp. increased the previously announced private placement, aiming to gather up to C$7 M in gross proceeds (Zacualpan, Estado de México).
  • Redstar Gold Corp. announced the commencement of a non-brokered private placement to raise aggregate gross proceeds of up to C$7 M (Cumaro, La Lola and Oso Negro in Sonora).
  • Barksdale Resources Corp. intends to complete a non-brokered private placement financing for $4 M in gross proceeds (San Javier, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Pan American Silver Corp. released a new mineral resource estimate for the La Colorada skarn deposit in Zacatecas. The inferred resource stands now as 100.4 M tonnes @ 44 gpt Ag, 0.20% Cu, 1.77% Pb, 4.29% Zn, containing 141 M Oz Ag, 199 K tonnes Cu, 1.8 M tonnes Pb, 4.3 M tonnes Zn. Drilling core-length highlights include 223.5 m @ 29 gpt Ag, 0.10% Cu, 1.00% Pb, 1.79% Zn; 101.3 m @ 44 gpt Ag, 0.21% Cu, 2.89% Pb, 3.92% Zn; 52.0 m @ 67 gpt Ag, 0.34% Cu, 1.37% Pb, 3.53% Zn; 83.6 m @ 23 gpt Ag, 0.27% Cu, 0.08% Pb, 4.21% Zn; 23.1 m @ 139 gpt Ag, 0.12% Cu, 3.99% Pb, 6.46% Zn; 28.2 m @ 57 gpt Ag, 0.06% Cu, 3.79% Pb, 3.18% Zn; 20.2 m @ 156 gpt Ag, 0.88% Cu, 5.99% Pb, 5.29% Zn.
  • Sailfish Royalty Corp. updated on the Gavilanes property in Durango. The Gavilanes project covers 13,594 ha in the San Dimas district in Durango, with an historical indicated resource of 953 K tonnes @ 164.6 gpt Ag, 0.09 gpt Au, 0.06% Cu, 0.42% Pb, 0.41% Zn and inferred resources of 5.4 M tonnes @ 124.6 gpt Ag, 0.12 gpt Au, nil Cu, 0.4% Pb, 0.34% Zn, holding 6.14 M Oz AgEq and 28.3 M Oz AgEq respectively.
  • GoGold Resources Inc. released results from the three first drill holes at La Trini on the Los Ricos North project in Jalisco. Highlighted core-length intercepts comprise: 43.1 m @ 0.70 gpt Au, 91 gpt Ag (including 17.8 m @ 0.89 gpt Au, 132 gpt Ag, which includes 4.0 m @ 1.92 gpt Au, 225 gpt Ag); 42.8 m @ 0.40 gpt Au, 52 gpt Ag (including 10.5 m @ 1.23 gpt Au, 56 gpt Ag); 29.8 m @ 2.41 gpt Au, 532 gpt Ag (including (4.5 m @ 12.83 gpt Au, 3,289 gpt Ag).

ON DEALS AND CORPORATE ISSUES

  • Minera Alamos Inc. finalized definitive agreements to acquire 100% interest in the Cerro de Oro gold project in Zacatecas. This deal increases the company’s land holdings in the district to 6,500 ha. Historical exploration includes 8,200 m of drilling in 76 holes and 6,000 m of trenching, with gold mineralization defined on a 500 m by 1,000 m stretch, oxidized to 70-80 m of depth, and open in multiple directions. Highlighted core–length drilling intercepts include 92 m @ 0.45 gpt Au, 70 m @ 0.75 gpt Au, 45 m @ 0.54 gpt Au, 70 m @ 0.40 gpt Au, 38 m @ 0.66 gpt Au, 30 m @ 1.29 gpt Au, 81.7 m @ 0.44 gpt Au, 38 m @ 0.44 gpt Au. Trenching results include: 75 m @ 0.67 gpt Au, 100 m @ 0.47 gpt Au, 200 m @ 0.50 gpt Au, 131 m @ 0.61 gpt Au. The deal involves the payment of $400 K and 2 M shares on closing, $300 K and 500 K shares on the first year, $400 K and 500 K shares on the second year, $800 K and 500 K shares on the third year and $1 M and 500 K shares on the fourth year. A $1 M bonus will be paid to the vendor upon the production of 50 K Oz Au.
  • Zanzibar Gold Inc. signed an option with Minerales de Tarachi for a 100% interest in the 6,000 ha Sonora Gold concessions. “Zanzibar Gold Inc. is looking forward to commencing detailed mapping and sampling exploration program on this large and very prospective property with a view to be drilling within four to five months”. The option involves payments of $50 K and 1.5 M shares on signing, $50 K and 1.5 M shares in six months, $50 K and 2 M shares in 12 months, $50 K at 18 months, $50 K and 2 M shares at 24 months, $50 K at 30 months, $150 K and 3 M shares at 36 months, $150 K at 42 months, $200 K at 48 months, $500 K at 54 months and $2.7 M at 60 months, for a total of $4 M in cash and 10 M shares. The optionor retains a 3.0% NSR of which 1% can be bought by Zanzibar for US$1 M.
  • Inomin Mines Inc. executed the agreement to acquire La Gitana and Peña Blanca projects in Oaxaca. The deal involves the payment of $25 K and the issuance of 1 M shares of Inomin, with a 1.5% NSR to Gunpoint on Peña Blanca and an existing 3.0% NSR to a third-party. Both properties are low-sulfidation epithermal systems with veins and dissemination within broad stockworks and breccias. La Gitana has a drilled zone of 500 m by 300 m with highlighted core length intercepts: 133.5 m @ 1.78 gpt Au, 101 gpt Ag; 33.0 m @ 0.64 gpt Au, 39 gpt Ag; 124.5 m @ 0.75 gpt Au, 24 gpt Ag; 145.5 m @ 0.40 gpt Au, 33 gpt Ag; 93.0 m @ 0.99 gpt Au, 19 gpt Ag; 63 m @ 1.27 gpt Au, 70 gpt Ag; 93.0 m @ 0.56 gpt Au, 20 gpt Ag; 60.0 m @ 1.20 gpt Au, 31 gpt Ag; 72.0 m @ 0.75 gpt Au, 35 gpt Ag; 28.5 m @ 1.55 gpt Au, 84 gpt Ag. At Peña Blanca, channel sampling of outcrops and trenches returned 23.5 m @ 2.26 gpt Au, 178 gpt Ag; 46 m @ 0.61 gpt Au, 7 gpt Ag; 23 m @ 0.61 gpt Au, 11 gpt Ag; 25 m @ 0.47 gpt Au, 8 gpt Ag; 3.0 m @ 5.9 gpt Au, 16 gpt Ag.
  • Barksdale Resources Corp. signed a binding letter of intent (LOI) securing an option to acquire the San Javier copper gold project in Sonora. The 1,184 ha project has 30,000 m of historic drilling by several companies with mineralization previously characterized as of IOCG type. Bakersdale intends to follow up also on structurally controlled mineralization, especially in zones of high gold grades. Some highlighted historic drill results comprise: 191.6 m @ 0.43% Cu; 54 m @ 0.75% Cu; 69 m @ 0.57% Cu; 33 m @ 1.47% Cu; 87 m @ 0.97% Cu, 0.16 gpt Au; 15 m @ 4.34% Cu, 0.94 gpt Au; 189 m @ 0.38% Cu, 0.49 gpt Au (including 63 m @ 0.35% Cu, 1.26 gpt Au which includes 9.9 m @ 0.17% Cu, 5.23 gpt Au); 42.0 m @ 0.53 % Cu, 1.09 gpt Au. The deal involves the payment of C$50 K and 4 M shares on completion, C$100 K and 2 M shares on the first year, C$150 K and 3 M shares on the third year and $200 K and 4 M shares on the sixth year. There is also an NSR of 1% when copper is below $3.50 per pound, or 2% when the price is over $3.51 per pound.
  • Riverside Resources Inc. announced the planned spin-out of the Peñoles project (Durango) to its shareholders by way of a plan of arrangement with Capitan Mining Inc. is to occur on August 14, 2020.

ON SOCIAL RESPONSIBILITY

  • Minera Saucito obtained the ISO45001 international certification on “Sistemas de gestión de la seguridad y salud ocupacional en el trabajo” by the BSI Group.
  • Newmont Peñasquito has realized 22,952 SARSCov-2 (Covid-19) fast tests since the recommencement of operations with 50% of the personnel.
  • Fresnillo PLC has been sanitizing more than 35 public spaces for more than 100 days now in Caborca, Sonora.
  • Fresnillo PLC donated two advanced mechanical respirators in Zacatecas, one to the Hospital General de Fresnillo and one to the Hospital General de Zona No.2 del Instituto Mexicano del Seguro Social (IMSS).
  • Minera Media Luna (Torex Gold) with the community of Nuevo Balsas realized several activities to improve public spaces. More than 300 persons participated in the activities that included painting streets and sidewalks, moving 50 tonnes of garbage, repairing 80 public lights and planting 200 trees.

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: Hematitized and silicified breccia in the paleo water table of a low sulfidation epithermal system in Queretaro. Picture by Jorge Cirett.

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

238 - copia

By Jorge Cirett

During the 28th week of the year (July 6th to July 12th, 2020), at least 31 press releases were announced by companies working in Mexico. Notably, six of those were exploration updates and six more related to financing. ON MEXICO ISSUES, a 12,000 years old ochre mining operation (now submerged) was discovered in the Yucatan peninsula. Avino Silver is the new victim of an illegal blockade. Mining in Mexico has extensive benefits to isolated communities, workers and the government. The Mining Fund rules have been changed, granting more political freedom on its assignment. Mines in the country prepare for production recovery in the second half of 2020.  ON EXPLORATION, in Sonora, Tarachi Gold is mapping and sampling on its Tarachi concessions, announced the finding of a porphyry copper system. In Sinaloa, Brigadier Gold is now exploring the Picachos property; Vizsla Resources released high-grade results on its Panuco property. In Durango, Canasil is now drilling the Nora project.  ON MINING, Argonaut Gold, Endeavour Silver, Great Panther, and Hecla released production results for the Q2, 2020. The figures presented reveal the extent of the Coronavirus emergency lockdown effects.  ON FINANCING, Aura Resources is aiming to raise up to $1 M. Prospero Silver consolidated its shares on a 10 to 1 basis. Mithril Resources intends to raise A$3.5 M. Solaris Resources is to trade in the TSX Venture Exchange. Advance Gold raised $301 K. Vizsla Resources announced a private placement for C$25 M. ON RESOURCES AND DEVELOPMENT, Mexican Gold commenced a 10,000 m drill program at its Las Minas project in Veracruz. GR Silver released more historic drilling results from Plomosas, Sinaloa. GoGold Resources released drilling results from eight more holes at Los Ricos Sur, Jalisco. Golden Minerals is drilling the Rodeo project in Durango. Magna Gold is producing gold from leaching heaps as it prepares to restart mining at the San Francisco mine in Sonora. ON DEALS AND CORPORATE ISSUES, Aura Resources is to change its name to Gold79 Mines. Brigadier Gold entered into a LOI with Minera Camargo to option 100% of the Picachos property in Sinaloa. First Mexican Gold changed its name to QcX Gold. Candente Gold informed the due diligence work on Magellan Acquisition assets in Nayarit has been conducted, results pending. Silver Tiger Metals is sampling historic workings on veins north of the El Tigre mine in Sonora. ON SOCIAL RESPONSIBILITY. Gold Resources, Torex Gold, Fortuna Silver, Fresnillo PLC and Peñoles informed on support activities and investments related to the Coronavirus emergency, community work supplies and/or about the “Day of the Tree”.

ON MEXICO ISSUES

  • Researchers discovered 12,000 years old submerged ochre mines in the Yucatan peninsula. Multiple artifacts and evidences of mining were found in this cave system that was above sea level up to 8,000 years ago.
  • Avino Silver & Gold Mines reports that members from the Mexican mining union have blocked the entrance to the Avino Mine in Durango. The group (that illegally blockades) includes the company’s unionized workers. As a result of the strike at the site, mining and mill processing operations have been halted.
  • Mining in Mexico supports 696 communities in 21 States, and often is the only option to take basic services and jobs to regions far away. The mining sector provides 2.6 percent of the GDP and accounts for 8.2 percent of the industrial output. Salaries at US$779/month (17,521 pesos/month) are 39 percent higher than the national average of $513/month (11,549 pesos/month). There are 379 thousand direct jobs and 2.3 M indirect jobs generated by the industry. Mining paid US$1.91 billion ($43,095 million pesos) in mining concession fees in 2019, and US$7,755 billion ($174,500 million pesos) in taxes in the 2016-2019 period.
  • The Mining Fund rules have been changed. The changes in the rules were published in the Diario Oficial de La Federación (Official Gazette), with the aim of speeding the process to deliver benefits to the communities, according to the document. The changes (which were opposed by the mining community because of the increased political control of the funds) include the elimination of necessary cost-benefit assessment of the projects deemed for social infrastructure, discarding also the obligation to establish coordination agreements in the request and delivery of said funds. The Mining Fund distributes part of the 7.0% of royalties and the 0.5% special tax on precious metal exploitation.
  • Mines in all the country prepare for a production recovery in the second half of 2020, as all companies have scrambled to operate under health safeguards brought by the Coronavirus pandemic.

ON EXPLORATION

  • Advance Gold Corp. provided an update on exploration of its Tabasqueña property in Zacatecas. The exploration that started trying to define epithermal vein mineralization has modified its target to a volcanogenic massive sulfide (VMS). A large chargeability anomaly more than 3 km long was defined in a geophysical survey, and subsequent drilling has intersected disseminated sulfides. Drilling of the disseminated sulfides has returned up to 39 ppb Au, 7 ppm Ag, 351 ppm Cu, 54 ppm Pb, 295 ppm Zn.
  • Brigadier Gold Ltd. entered into a binding letter of intent with Minera Camargo S.A. de C.V. for an option to acquire 100% interest in the Picachos property in Sinaloa. The area has more than 160 known historic underground workings, a recently identified porphyry copper prospect and drill permits in place. “The largest vein system trends northeasterly for seven kilometers along a major fault zone, and host the past-producing San Agustin underground mine”. Regional stream sediment results from a government survey shows several highly anomalous basins with up to 2.6 ppm Au, 299 ppm Cu, 13.9 ppm Mo, 639 ppm Pb and 1,716 ppm Zn.
  • Vizsla Resources Inc. released additional drilling results from the Napoleon vein corridor at the Panuco project in Sinaloa. Highlighted core length drill intercepts comprise 6.0 m @ 66.8 gpt Au, 1,808 gpt Ag (including 3.7 m @ 107.8 gpt Au, 2,889 gpt Ag); 1.78 m @ 2.49 gpt Au, 59 gpt Ag; 3.5 m @ 1.11 gpt Au, 57 gpt Ag; 10.65 m @ 1.34 gpt Au, 134 gpt Ag. The corridor “ hosts two main quartz veins that are separated by some 10 to 20 metres and appears to dip very steeply to sub-vertical. So far it has been mapped along strike for over 2,000 m. Between the two main veins are a series of smaller splay veins with variable orientations, that are related to dilation along the structure under strike slip movement …. Vizsla has an option to acquire 100% of the newly-consolidated 9,386.5 Ha Panuco district in southern Sinaloa, Mexico, near the city of Mazatlán. The option allows for the acquisition of over 75 km of total vein extent, a 500 tpd mill, 35 km of underground mines, tailings facilities, roads, power and permits”.
  • Tarachi Gold Corp. updated on field work activities on the concessions known as the Tarachi project, in Sonora. Detailed mapping and sampling on the La Dura and Virginia areas of the southern Jabali concession is near completion. Preliminary field work on the northern concessions of San Javier, Pretoria and Chivitas was also conducted, finding porphyry copper mineralization that is currently being defined. Environmental applications for drilling are ready for submission.
  • Canasil Resources Inc. started the drill program to test the Candy vein at its Nora project in Durango. Mineralization at Nora is hosted within structurally-controlled epithermal veins, of which the Candy vein is to be tested in a 500 m stretch.

ON MINING

  • Argonaut Gold Inc. announced second quarter production of 31,531 Oz AuEq from its Mexican operations. For the full-year 2020 the company expects to produce 45 K – 50 K Oz AuEq at El Castillo, 62 K – 68 K Oz AuEq at San Agustín (both in Durango) and 53 K – 55 K Oz AuEq at La Colorada (Sonora), for a total production of 160 K – 173 K Oz AuEq in Mexico.
  • Endeavour Silver Corp. presented Q2 2010 production figures, which were down 42% because of the Coronavirus pandemic lockdown. On the bright side, significant true width high-grade intercepts were made near current mine workings, like 1.5 m @ 24.3 gpt Au, 3,217 gpt Ag in Bolañitos, Guanajuato, and 10.0 m @3.25 gpt Au, 1,410 gpt Ag at Guanaceví, Durango.Endeavour Q2 2020 Production1
  • Great Panther Mining Ltd. released second quarter 2020 production results, with figures from its Mexican operations. At Topia, Durango, 7,781 tonnes were processed @ 352 gpt Ag, 0.87 gpt Au, recovering 92.5% Ag, 54.0% Au to produce 81.4 K Oz Ag, 118 Oz Au, 163 tonnes Pb, 223 tonnes Zn. At the Guanajuato mine complex, Guanajuato, 16,755 tonnes were processed @ 133 gpt Ag, 1.80 gpt Au, recovering 85.4% Ag, 84.7% Au, to produce 61 K Oz Ag, 819 Oz Au.
  • Hecla Mining Co. released preliminary production results for the second quarter 2020. At San Sebastian, in Durango, 2 M Oz Ag, 1,331 Oz Au were produced. Mining of oxide material is expected to be completed in the third quarter and milling in the fourth quarter of 2020. The viability of mining the sulfide Hugh Zone continues to be assessed. The mill operated at an average of 528 tpd.

ON FINANCING

  • Aura Resources Inc. initiated a non-brokered private placement aiming to raise between $500 K and $1 M (Taviche, Oaxaca).
  • Prospero Silver Corp. announced that the previously disclosed proposed consolidation of its shares, on a 10 to 1 basis, should have taken effect on July 7, 2020 (Pachuca East, Hidalgo).
  • Mithril Resources Ltd. received firm commitments to raise A$3.5 M through a share placement. Funds are to be used for the maiden drill program at its Coplaquin property in Durango.
  • Solaris Resources Inc. announced its common shares have been approved to list on the TSX Venture Exchange, and expects the trading is to be effective on July 13, 2020 (La Verde, Michoacan).
  • Advance Gold Corp. closed the previously announced private placement, for gross proceeds of $301 K (Tabasqueña, Zacatecas).
  • Vizsla Resources Corp. announced a bought deal private placement with Canaccord Genuity Corp. on behalf of an underwriting syndicate to raise C$25 M (Panuco, Sinaloa).

ON RESOURCES AND DEVELOPMENT

  • Mexican Gold Mining Corp. announced the commencement of a 10,000 m drill program to test all targets at Las Minas, Veracruz. A focus of the drilling is to expand and upgrade the current resource at El Dorado, follow up a previous 5.2 m pyrite rich quartz vein intersection @ 8.94 gpt Au at Cinco Señores, two high-grade vein trends at the Changarro zone, and the Las Minillas skarn occurrence. Other activities in preparation of the preliminary economic assessment (PEA) include the environmental baseline study, an enhanced metallurgy study and a Lidar digital terrain model.
  • GR Silver Mining Ltd. released historic drilling results from the San Juan area at its Plomosas property in Sinaloa. Highlighted true width (tw) intervals comprise 1.5 m @ 2.1 Gpt Au, 8 gpt Ag, 0.8% Pb, 4.1% Zn; 21.8 m @ 1.0 gpt Au, 7 gpt Ag, 1.5% Pb, 1.0% Zn; 2.4 m @ 15.1 gpt Au, 45 gpt Ag, 3.1% Pb, 0.9% Zn; 10.4 m @ 0.7 gpt Au, 7 gpt Ag, 1.6% Pb, 2.3% Zn; 25 m @ 0.3 gpt Au, 26 gpt Ag, 0.6% Pb, 0.8% Zn. These results extend mineralization 600 m on the San Juan system, to a total of 1 km in longitude.
  • GoGold Resources Inc. released the assay results from eight diamond drill holes at the Los Ricos South project in Jalisco. The San Juan, Rascadero, and East vein zones were tested, with highlighted results comprising 8.8 m @ 0.23 gpt Au, 44 gpt Ag at San Juan; 41.0 m @ 1.36 gpt Au, 168 gpt Ag (including 4.0 m @ 11.85 gpt Au, 1,295 gpt Ag); 18.4 m @ 5.18 gpt Au, 500 gpt Ag (including 3.2 m @ 26.2 gpt Au, 2,372 gpt Ag); 12.6 m @ 0.70 gpt Au, 111 gpt Ag at Rascadero; 3.0 m @ 0.33 gpt Au, 40 gpt Ag; 6.1 m @ 0.26 gpt Au, 36 gpt Ag at the East vein.
  • Golden Minerals Co. has commenced drilling at its Rodeo property in Durango. “The upcoming drill program will expand on the historic drilling campaigns that successfully tested multiple gold-quartz veins and breccias of the Rodeo low sulfidation vein system with encouraging results”. Highlighted historic drills results include 28.44 m @ 3.04 gpt Au, 5 gpt Ag; 25.4 m @ 3.79 gpt Au, 4 gpt Ag; 22.35 m @ 3.28 gpt Au, 17 gpt Ag; 28.45 m @ 4.87 m @ 10 gpt Ag31.2 m @ 5.99 gpt Au, 12 gpt Ag; 19.15 m @ 2.58 gpt Au, 5 gpt Ag; 19.2 m @ 1.93 gpt Au, 6 gpt Ag.
  • Magna Gold Corp. provided an operational update on its San Francisco mine in Sonora. “During the first two months of operations, the San Francisco Mine reported sales of US$8.53 million and operating costs of US$3.77 million with an operating margin of US$4.76 million. The Company produced 5,087 ounces of gold and sold 4,977 ounces of gold at an average cost of US$741 per ounce of gold produced and an average cost of $758 per ounce of gold sold. Gold production in May was 2,349 ounces and in June reached 2,738 ounces”. The company intends to complete the pre-feasibility study (PFS) by the end of July, when the processing of new fresh mineralized material is to start. Cash at the end of June at the San Francisco mine was US$8.4 M.

ON DEALS AND CORPORATE ISSUES

  • Aura Resources Inc. expects to change its name to Gold79 Mines Ltd. following the closing of the Territory Metals acquisition (Taviche, Oaxaca).
  • Brigadier Gold Ltd. entered into a binding letter of intent with Minera Camargo S.A. de C.V. for an option to acquire 100% interest in the Picachos property in Sinaloa. To acquire the 3,954 ha property Brigadier has to pay Minera Camargo US$275 K over five years and issue a total of 4 M shares over the same period, and 1 M shares when defining a 350 K Oz Au resource and US$725 K and 1 M shares when a feasibility report is completed, US$2 M upon commercial production commencement and a 2% NSR.
  • First Mexican Gold Corp. announced the change name to QcX Gold Corp. has been made effective on July 6, 2020 (Hilda, Sonora).
  • Candente Gold Corp. informed its due diligence team conducted the visits to the San Dieguito de Arriba processing plant and the historic El Dorado mine in Nayarit. The due diligence visit is part of the Memorandum of understanding (MOU) between Candente and Magellan Acquisition Corp. “The results of these tests along with recommendations for rehabilitation work and projections of ongoing operating expenses will provide the basis for a cost estimate to return the plant to operational status with feed material from the El Dorado Property.” (El Oro, Estado de México).
  • Silver Tiger Metals Inc. commenced underground channel sampling on the high-grade silver veins north of the historic El Tigre mine, in Sonora. “The areas of focus includes the Caleigh vein, the Canon Combination vein (unmined portion of the El Tigre vein), the Protectora vein and the Fundadora vein, all of which are located in the three kilometers of exposed veins at surface north of the historic El Tigre Mine”.

ON SOCIAL RESPONSIBILITY

  • Don David Gold Mines (Gold Resources) informed on the actions taken to work under the Coronavirus pandemic emergency at its operations in Oaxaca. The company supports the Mining Fund with US$8.34 M ($187.7 M pesos) and US$533 K ($12 M pesos) for community deals and infrastructure.
  • Minera Media Luna (Torex Gold) in coordination with local and State authorities released 300 K tilapia alevins (juvenile fish), with a shared company-authorities investment of $44.4 K ($1 M pesos). Also, $39.2 K ($881,764 pesos) were delivered to help the fishermen to modernize their engines and boats.
  • Minera Cuzcatan (Fortuna Silver) announced its plan to plant 13,500 seedlings of native species of the central valleys of Oaxaca in 15 ha of ground. The company has planted already 25,000 seedlings over the last three years on 25 ha.
  • Fresnillo PLC made a recount of the activities that the company has done regarding reforestation as years go by. The Bosque Sustentable Porvenir in Durango was established in 977 ha in association with the Instituto Nacional de Investigaciones Forestales, Agrícolas y Pecuarias. In Juanicipio, Zacatecas, 21,596 plants were relocated, and 14.3 ha were re-forested with 6,787 greenhouse seedlings. At La Herradura, in Sonora, 4,975 plants have been relocated in eight ha, and reforested 2 hectares more. Overall, 1.4 M seedlings have been produced since 2003 by the company.
  • Industrias Peñoles created in Torreon, Coahuila, the 18 ha Bosque del Centenario in 2001, which is now a green space in the city. The company’s greenhouse produces and donates to the community and its members 80,000 seedlings per year.

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:   Vapor whiffs on a cool morning in a hot spring field in Queretaro. Picture by Jorge Cirett.

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

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By Jorge Cirett

During the 26th week of the year (June 22nd to June 28th, 2020), at least 30 press releases were announced by companies working in Mexico. Notably, 6 of those were exploration updates and 6 more related to financing. ON MEXICO ISSUES, Mining and  Automotive industries are to operate even if there is a resurgence of Coronavirus cases. The Mining Fund Technical Committee approved US$11.6 M for 98 projects in 11 States. Canadian Mining companies are under pressure to pay disputed taxes. AMLO rejected the idea of nationalizing the lithium industry…. but declares the conditions on which those conditions are granted have to be reviewed (Keep in mind what’s been happening in the electricity industry).  ON EXPLORATION, in Sonora, Ridgestone completed a maiden drill program on its Rebeico project; Tarachi Gold acquired the Tarachi property in Sonora; Aztec Minerals identified multiple chargeability anomalies at its Cervantes project; Tocvan Ventures released strong results of its soil program on the Pilar project. Vizsla Resources released high grade drilling results from its Panuco project. GoGold Resources released results from three more drill holes at its Los Ricos South project.  ON MINING, VanGold Mining plans to clearing the shaft at the Pinguico property to provide access for sampling and eventually infill extraction. ON FINANCING, Southern Silver is eyeing a private placement to raise up to C$7 M. Aura Minerals authorized a dividend’s policy. First Mexican Gold granted 2.5 M options to directors, officers and consultants. Orex Minerals raised $989 K on the closing of the first tranche of its non-brokered private placement. Apollo Gold aims to raise up to $5 M. McEwen Mining refinanced its $50 M senior secured term loan facility.   ON RESOURCES AND DEVELOPMENT, GR Silver Mining released drill results from historic holes at its Plomosas project in Sinaloa. Magna Gold filed a technical report on its San Francisco mine, in Sonora. SilverCrest Metals updated on the development of the Las Chispas project under the Coronavirus emergency. ON DEALS AND CORPORATE ISSUES, Argonaut Gold and Alio Gold announced that COFECE, the last bureaucratic hurdle, has cleared the transaction on its merger. Riverside Resources disclosed additional funding from BHP on its generative copper exploration program in Sonora. Southern Silver Exploration signed an agreement to acquire Electrum Global Holdings’s 60% share on the Cerro Las Minitas project in Durango. Candente Gold mobilized a team for the due diligence on the El Dorado project and the SDA mill in Nayarit. Hochschild optioned the Los Cuarenta property in Sonora from Riverside Resources. Apollo Gold Corp. entered into a LOI to option the “Jalisco Group of properties” from First Majestic. ON SOCIAL RESPONSIBILITY. Peñasquito donated medical supplies to the IMSS Hospital Número 12 in Concepción del Oro, Zacatecas. Esperanza Silver repaired the water supply system in San Agustín Tetlama, Morelos.

ON MEXICO ISSUES

  • Mining and the Automotive industries to operate, even if there is a resurgence (hypothetical) of Coronavirus cases. Graciela Márquez, Economy Secretary, explained these industries are essential, and are to continue activities under any color of the health lights system.
  • The Mining Fund Technical Committee approved the funding of 98 projects for US$11.6 M ($260.9 M pesos) for pavement laying, sidewalk construction and water supply nets. The funds are to be distributed as follows: Sonora US$6.12 M, Zacatecas US$2.47 M, Durango US$1.08 M, Coahuila US$0.93 M, Chihuahua US$0.71 M, San Luis Potosí US$0.21 M, Aguascalientes US$90 K, Jalisco US$54 K, Michoacán US$45 K, Oaxaca US$32 K and Hidalgo US$14 K.
  • Canadian Mining companies are under pressure to pay disputed taxes to the Mexican government, according to University academics on the matter.
  • The president of Mexico, Andres Manuel Lopez Obrador, rejected the idea of nationalizing the lithium exploitation in the country. His comment comes regarding the ideas expressed by Victor Manuel Toledo, Environment Secretary and staunch opponent of mining. According to the president, there is already a legal framework for contracts and concessions by the government for the exploitation of mineral resources. However, he also stressed that the conditions on which those concessions are granted have to be reviewed.

ON EXPLORATION

  • Ridgestone Mining Inc. completed the maiden drill program at its Rebeico project in Sonora. Under the program 1,674 m were drilled in ten holes. Most of the holes tested the geometry of gold-copper mineralization on the New Year Zone. Core samples are being submitted to the lab.
  • Vizsla Resources Corp. released drilling results from two holes on the Napoleon vein corridor at the Panuco project in Sinaloa. Highlighted core-length intercepts comprise: 8.2 m @ 739 gpt Ag, 11.06 gpt Au; 2.0 m @ 1,527 gpt Ag, 24.9 gpt Au on one hole; 2.5 m @ 454 gpt Ag, 9.20 gpt Au; 5.1 m @ 309 gpt Ag, 8.00 gpt Au, 2.22% Pb, 4.75 % Zn; 1.8 m @ 186 gpt Ag, 15.63 gpt Au, 1.12% Pb, 7.73% Zn in the second hole. True widths are estimated at between 46-66% of down hole lengths.
  • GoGold Resources Inc. informed on the results from three diamond drill holes at the Los Ricos South project. The holes drilled at the San Juan, Rascadero and East veins returned core length intervals of 27 m @ 0.09 gpt Au, 28 gpt Ag (including 4.0 m @ 0.45 gpt Au, 89 gpt Ag); 39.0 m @ 0.45 gpt Au, 117 gpt Ag (including 11.0 m @ 1.40 gpt Au, 319 gpt Ag); 3.2 m @ 0.15 gpt Au, 25 gpt Ag.
  • Tarachi Gold Corp. commenced fieldwork at its Tarachi project in Sonora. Tarachi’s geological crews have begun a two-week field program of geological mapping and rock sampling of known mineral occurrences to verify historical work programs. Historical work includes drill intercepts of 5.0 m @ 34.5 gtp Au, 3.0 m @ 24.3 gpt Au; 1.32 m @ 110 gpt Au. The 2,560 ha project includes the San Javier, Pretoria, Chivitas, Jabali, Juliana, Texana and Tarachi concessions.
  • Aztec Minerals Corp. identified multiple chargeability anomalies on a 3-dimensional IP-Resisitivity survey completed last year at its Cervantes property in Sonora. Each of the 6 porphyry prospects along the corridor exhibit strong porphyry alteration and Au (Cu) mineralization, while none of the Jacobo, Purisima West, Purisima East and Estrella targets have ever been drill-tested .
  • Tocvan Ventures Corp. released results from the soil sampling survey undertaken at its Pilar property in Sonora. The results include values of up to 8 gpt Au and 317 gpt Ag, and collectively have highlighted the East Zone as a new focus area..

ON MINING

  • VanGold Mining Corp. plans to begin clearing the El Pinguico shaft at its El Pinguico project in Guanajuato. The mucking of the shaft will allow the company to sample the lower part of the old workings infill, which on surface averaged 1.75 gpt Au, 183 gpt Ag. It will also allow the inspection of underground drifts for extracting the mineralized material, and check on past producing high-grade stopes.

ON FINANCING

  • Southern Silver Exploration Corp. plans a fully marketed private placement aiming to gross proceeds for a minimum of C$7 M. The company entered into a definitive agreement with Electrum Global Holdings L.P. to acquire Electrum’s 60% ownership interest in Southern Silver Holdings Ltd. for current and future cash and share payments totaling US$15.0 M (Cerro Las Minitas, Durango).
  • Aura Minerals Inc. announced its board of directors approved a dividend policy (Aranzazu, Zacatecas).
  • First Mexican Gold Corp. granted 2.5 M options to directors, officers and consultants (Hilda, Sonora).
  • Orex Minerals Inc. closed the first tranche of its non-brokered private placement, for gross proceeds of $989 K (Sandra-previously Sandra Escobar-, Durango).
  • Apollo Gold Corp. is conducting a non-brokered placement aiming to raise up to $5 M in gross proceeds (Eztzatlan, Jalisco).
  • Mc Ewen Mining Inc. announced the refinancing of its $50 M senior secured term loan facility. “As part of the refinancing, Sprott Private Resource Lending II (Collector), LP has replaced Royal Capital Management Corp. as a lender and the administrative agent for the Term Loan; and Evanachan Limited, a corporation wholly-owned by Rob McEwen, remains a lender….. the maturity date of the Term Loan has been extended by two years to August 31, 2023” (El Gallo, Sinaloa).

ON RESOURCES AND DEVELOPMENT

  • GR Silver Mining Ltd. Released drill results from historic holes at its Plomosas project in Sinaloa. These high-grade silver intercepts are outside the previously mined Pb-Zn-Ag-Au ore of the Plomosas mine area. Some of the highlighted true width (tw) intercepts comprise: 14.6 m @ 46 gpt Ag, 1.0 gpt Au, 1.7% Pb, 2.2% Zn; 5.4 m @ 326 gpt Ag, 1.9 gpt Au, 0.7% Pb, 1.2% Zn (including 1.9 m @ 900 gpt Ag, 1.9 gpt Au, 1.9% Pb, 3.2% Zn); 2.1 m @ 349 gpt Ag, 0.4 gpt Au, 2.3% Pb, 1.3% Zn); 2.7 m @ 1,469 gpt Ag, 0.5 gpt Au, 2.2% Pb, 3.2% Zn; 17.4 m @ 4 gpt Ag, 3.6 gpt Au; 2.2 m @ 398 gpt Ag, 0.3% Pb, 0.7% Zn; 32.8 m @ 32 gpt Ag, 0.9 gpt Au; 9.8 m @ 28 gpt Ag, 0.7 gpt Au, 4.2% Pb, 0.9% Zn; 13 m @ 13 gpt Ag, 2.8 gpt Au, 0.5% Pb, 1.4% Zn; 11.7 m @ 8 gpt Ag, 1.7 gpt Au, 0.4% Pb, 0.7% Zn.
  • Magna Gold Corp. filed an independent technical report for the San Francisco Gold project in Sonora.
  • SilverCrest Metals Inc. continues activities at its Las Chispas project in Sonora. A fully confined camp for 160 persons has been built at the site. All personnel is tested for COVID-19, and transported to the project once the negative results are received. Currently eight rigs are operating on the H2 program focusing on the high-grade resource expansion at the veins Babicanora (SE, NE, deep), Babi Sur (SE to depth), Babi Vista (all directions), Babicanora Norte (SE, NW, deep), Las Chispas (SE to depth), Giovanni (SE to depth), William Tell (all directions), and Varela (all directions). “Underground development has resumed, with a target of 500 metres per month by Q3, 2020, under confined camp conditions. The first ventilation raise in the Babicanora area has been completed. “. The feasibility study is progressing.

 

ON DEALS AND CORPORATE ISSUES

  • Argonaut Gold Inc. and Alio Gold Inc. announced the receipt of the clearance decision from the Comisión Federal de Competencia Económica (COFECE) with respect to the pending merger between Argonaut Gold and Alio Gold. This approval “was the final government agency approval required before completing the merger, which is anticipated to occur between June 29, 2020 and July 3, 2020” (El Castillo, Durango; Ana Paula, Guerrero).
  • Riverside Resources Inc. announced the continuation of the exploration agreement with BHP Exploration Chile SpA for the funding of generative copper exploration in the copper producing belt of Sonora. “BHP will be providing Riverside with US$720,000 to commence the first half of the second year of the Program to continue to grow the portfolio of copper projects which is an increase of US$220,000 from the initial plan ”.
  • Southern Silver Exploration Corp. entered into a definitive agreement with Electrum Global Holdings L.P. to acquire Electrum’s 60% ownership interest in Southern Silver Holdings Ltd. for current and future cash and share payments totaling US$15.0 M to gain 100% interest in the Cerro Las Minitas project, in Durango. Payments include US$5M in cash and US$2 M in shares by September 2020 (less credit for deposit of C$1.35 M paid in June 2020), US$2 M in cash and US$2 M in shares six months from closing and US$2 M in cash and US$2 M in shares one year from closing Cerro Las Minitas, Durango).
  • Candente Gold Corp. mobilized a team for the due diligence process on its acquisition process from Magellan Acquisition Corp. of the San Dieguito de Arriba processing plant and the El Dorado project in Nayarit. The Eldorado epithermal vein trend has been traced for 3.5 km along strike, hosting multiple mineralized zones, including distinct high-grade veins and lower grade bulk tonnage stockwork zones extending over tens of meters in width in both the hanging wall and footwall of the vein system.
  • Riverside Resources Inc. entered into a definitive option agreement with Minera Hochschild de Mexico S.A. de C.V. for Riverside’s Los Cuarentas project in Sonora. Hochschild is to pay Riverside US$90 K on the signing of the agreement and invest US$8 M over four years in the property to earn 51%, upon which it can elect to earn an additional 24% by spending a further $3 M and producing a feasibility study. Upon completing the second phase earn-in, Riverside will have the option to sell its interest for US$20 M, while retaining a 1% NSR.
  • Apollo Gold Corp. entered into a non-binding letter of intent (LOI) with First Majestic Silver Corp. for a three-year earn-in option to acquire First Majestic’s “Jalisco Group of Properties”. Under the terms of the agreement Apollo will pay $250 K and issue 4.29 M shares and 1.5 M warrants on closing of the definitive agreement. A further $200 K and 1 M shares a year from closing and $300 K and 1 M shares two years from the closing date. Apollo commits to spend at least $1.25 M on the properties within 36 months of closing. The properties comprise 5,240 ha of mining concessions which include the Etzatlan, Ampora, La Calabaza, Piedra and Bola mines.

ON SOCIAL RESPONSIBILITY

  • Peñasquito donated medical supplies in the fight against Coronavirus to the IMSS Rural Hospital number 12 in Concepción del Oro, Zacatecas.
  • Esperanza Silver de Mexico repaired the water supply equipment supplying the 2,500 inhabitants of San Agustín de Tetlama community in Morelos.

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: Epithermal quartz-graphite vein, Hermosillo District, Sonora, Sonora. Picture by Jorge Cirett.

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