Drilling Results

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

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During the 47th week of the year (November 20th to November 26th, 2017), at least 32 press releases were announced by companies working in Mexico. ON MEXICO ISSUES: No relevant news. ON EXPLORATION: six companies informed on exploration efforts during the week: In Sonora Azure Minerals reported favorable metallurgical results from its Oposura project. In Chihuahua Monarca is to acquire the San Jose project; Mammoth Resources mobilized equipment to drill its Tenoriba property. In Sinaloa Starcore is to acquire the Santa Fe project, with an historical Au-Ag resource. Silver Bull released drill results from the sulfide zone at Sierra Mojada; Prize Mining is to acquire the Manto Negro stratabound copper project. Evrim Resources announced the acquisition of the Cuale high sulfidation property. In Veracruz Mexican Gold announced step-out drilling mineralization intercepts at Las Minas. ON MINING: Impact Silver presented its quarterly report. Marlin Gold informed on the mining program at La Trinidad in Sinaloa.  In Zacatecas, operations recommenced at the Santacruz Silver’s Veta Grande mill after the PROFEPA suspension. MX Gold informed on advance at the Magistral tailings project in Durango. Americas Silver informed the San Rafael mine is sourcing all ore treated in Cosalá. ON FINANCING: Telson Resources received $1 M from the exercise of warrants. Aztec Minerals is now trading on the USA. Primero Mining obtained an extension on its revolving credit facility. ON RESOURCES AND DEVELOPMENT: Leagold Mining reported more high-grade results from drilling at Bermejal Underground on its Los Filos property in Guerrero. Stroud Resources announced an updated resource estimate for its Santo Domingo Hostotipaquillo deposit in Jalisco. Almaden Resources released more drill results from the Ixtaca deposit in Puebla.  ON DEALS AND CORPORATE ISSUES: Soleil Capital and Goldplay Exploration are to amalgamate to create a precious metals exploration company focused in Mexico. Monarca Minerals signed a LOI to acquire the San Jose property in Chihuahua. Starcore entered into a LOI to acquire the Santa Fe property in Sinaloa. Camrova Minerals (Baja Mining) has seen its interest on El Boleo property (in Baja California) reduced to 7.3%. Bacanora Minerals is involved in a lawsuit over a 3% royalty on its Sonora lithium project. Golden Goliath has received the fifth payment on the option of its Uruachic properties. Prize mining is to acquire the Manto Negro project in Coahuila from Scion Mines.

ON MEXICO ISSUES

  • No Relevant News.

ON EXPLORATION

  • Azure Minerals Ltd. reported metallurgical results from its Oposura project in Sonora. The test returned over 70% and 80% recoveries respectively for Pb and Zn, producing a lead concentrate (>55% Pb, 360 g/t Ag) and a zinc concentrate (>55% Zn) with low levels of deleterious elements. More metallurgical studies will be undertaken on core material from the present drill campaign.
  • Monarca Minerals Inc. entered into a letter of intent (LOI) to acquire the San Jose property in Chihuahua. The 5,580 hectares project shows disseminations, stockwork and veins of skarn, gossan and altered intrusive rocks, with assays of up to 26.8 g/t Au, 161 g/t Ag, 6.5% Pb, 0.9% Zn, 4.2% Cu.
  • Starcore International Mines Ltd. entered into a letter of intent (LOI) with Eduardo de la Peña Gaitan and other owners, to acquire the 21,000 hectare Santa Fe project in Sinaloa. Previous exploration included 13,000 m of drilling in 2013, establishing an historical (Non 43-101 compliant) open pit resource of 285 K AuEq Oz in 5 M tonnes @ 89 g/t Ag, 0.56 g/t Au; or an underground resource of 225 K AuEq Oz in 1.28 M tonnes @ 266 g/t Ag, 1.83 g/t Au.
  • Mammoth Resources Corp. has mobilized a drill rig and a bulldozer to its Tenoriba property in Chihuahua. The company is to begin a 3,000 m drill program in 8 to 24 holes to test gold-silver targets on a 5 km strike length within a 15 square Km area of ubiquitous high sulfidation gold mineralization. The company announced the release of a technical report on the drill selection criteria.
  • Silver Bull Resources Inc. released results from four drill holes testing the sulfide zone below the previously defined oxide zone on its Sierra Mojada project in Coahuila. Highlighted results comprise 9 m @ 20.7% Zn, 1.0% Pb, 98 g/t Ag, 0.26% Cu, including 3.65 m @ 47.8% Zn, 2.5% Pb, 105 g/t Ag, 0.26% Cu; 3 m @ 537 g/t Ag, 3.9% Zn, 1.1% Cu, including 1 m @ 1,280 g/t Ag, 14.8% Zn, 2.3% Cu.
  • Prize Mining Corp. entered into an agreement (see the appropriate section below) to acquire the Manto Negro copper project in Coahuila. The project consists of seven mining concession covering 17,959 hectares. “The Project is identified as a stratabound Cu-Ag (+/- Pb-Zn) oxidized “Red Bed type” copper deposit… The Project area is hosted by Cretaceous carbonates and sandstones with exposures of mineralization being identified in numerous locations occurring in concordant layers ranging from 2 to 23 metres thick that are referred to as “Mantos”. Exposures of this mineralization have been identified over the 50-kilometre length of the Project.” The grades of historical sampling, trenching and drilling range from 0.73% to 5.55% Cu, 19 to 793 g/t Ag, 1.5 to 15% Pb and 0.3 to 3.64% Zn.
  • Mexican Gold Corp. announced that drilling to expand the high-grade dike contact mineralization previously encountered at its Las Minas project in Veracruz has successfully intersected long intervals of chalcopyrite-magnetite mineralization in five additional holes. Core length intervals include: 0 m; Cumulative 48.0 m; 20.3 m; cumulative 28.0 m, 28.0 m of chalcopyrite-magnetite mineralization.
  • Evrim Resources Corp. announced the acquisition and early exploration results of the 97 square kilometer Cuale gold project in Jalisco. The Cuale project was initially staked under the Callinan Royalties generative alliance (now owned by Altius Minerals Corp.) with formal title granted to Evrim for 100% ownership in November 2017. “Mineralization is found in moderately to strongly silicified rhyolite that contains up to 10% specular hematite in boxworks, interpreted to have formed after pyrite. Zones of pervasive silicification with strong clay alteration of phenocrysts trending to vuggy silica are observed..” Seven rock chip samples collected on a 500 m by 250 m zone returned from 0.19 to 4.56 g/t Au.

ON MINING

  • Impact Silver Corp. released its financial and production third quarter 2017 report. Production at the Guadalupe mill came primarily from the San Ramon Deeps, Cuchara and San Patricio mines. Highly variable ore from the San Ramon Deeps mine contributed to the lower grade mill feed @ 175 g/t Ag. Total silver production was 229.9 K Oz. Exploration work is focused on the Alacran, Alacran North, San Ramon North and El Paso vein. The company had a $6.0 M cash position at the end of the period.
  • Marlin Gold Mining Ltd. informed that most of the mining during the year at La Trinidad, in Sinaloa, focused on expanding and deepening the north side of the Taunus pit, while waste removal continues on the southern part of the pit. Up to the end of October, 35,500 Oz Au have been shipped. Drilling commenced at the Colinas target, 1.2 km south of the pit.
  • Santacruz Silver Mining Ltd. recommenced operations at its Veta Grande mill in Zacatecas, following the authorization by PROFEPA and SEMARNAT (Environmental agencies in Mexico).
  • MX Gold Corp. informed all major tankage at the Magistral tailings project in Durango has been installed, with the grinding mill scheduled for completion in Early December 2017, and the installation of the Merrul-Crowe circuit underway.
  • Americas Silver Corp. informed production from the San Rafael mine at the company’s Cosalá operations in Sinaloa is now the sole source of mill feed. The mine is currently producing over 1,000 tonnes per day (tpd) of the targeted 1,500 tpd, with a stockpile of over 25 k tonnes from San Rafael and further 50 K tonnes of ore from Nuestra Señora.

ON FINANCING

  • Telson Resources Inc. reported that all the warrants issued as part of a private placement on November 2015 have been exercised, resulting in CAD$1 M in proceeds (Tahuehueto, Durango; Campo Morado, Guerrero).
  • Aztec Minerals Corp. has been approved to commence trading in the USA as of Nov 20th 2017, on the OTCQB under the symbol AZZTF (Cervantes, Sonora).
  • Primero Mining Corp. has agreed in principle with its lenders to an extension to its revolving credit facility and guarantee provided by Wheaton Precious Metals Corp., previously maturing on November 23, 2017. The facility has been extended to December 1, 2017, providing the company to continue negotiations on its strategic review process and the possible divestiture of its San Dimas mine in Durango.

ON RESOURCES AND DEVELOPMENT

  • Leagold Mining Corp. reported additional high-grade results from the Bermejal Underground drill program at the Los Filos mine in Guerrero. “Bermejal Underground is at the northern end of a large intrusive body which has a total circumference of at least 15 kilometres…” The area being drilled extends 1,600 m along the strike of the intrusive contact and has a vertical depth extent of over 800 m. The drilling shows consistent oxide mineralization at carbonate/intrusive contacts either along the intrusive contact or below the intersection between the sill and the Bermejal intrusive contact. An updated resource estimate is expected before year end.

Leagold Bermejal Underground drilling1

  • Stroud Resources Ltd. updated the resource estimate in a new technical report on its Santo Domingo Hostotipaquillo project in Jalisco. The reports confirms the presence of 6.1 M tonnes @ 0.47 g/t Au, 101 g/t Ag and 3.48 M tones @ 0.39 g/t Au which contain 91.6 K Oz Au, 19 M Oz Ag as measured and indicated resources and 43.2 K Oz Au, 10 M Oz Ag as inferred resources. La Raya vein has a mineralized zone 35 m wide over 700 m along strike and 300 m of depth; and the Guadalupe vein is typically 15 to 30 m wide. Five additional veins have been identified for further exploration.
  • Almaden Minerals Ltd. released drill results from its ongoing exploration and development program for the feasibility study (FS) of the Ixtaca deposit at its Tuligtic project in Puebla. Two holes confirmed the discovery of an ore zone within a portion of the pit considered waste in the prefeasibility study (PFS). The holes intersected 23 m @ 0.45 g/t Au; 38.6 m @ 7.92 g/t Au, 15 g/t Ag (including 1 m @ 237 g/t Au, 232 g/t Ag); 20.4 m @ 0.89 g/t Au, 12 g/t Ag (including 7.0 m @ 2.07 g/t Au, 20 g/t Ag).

ON DEALS AND CORPORATE ISSUES

  • Soleil Capital Corp. entered into an amalgamation agreement with Goldplay Exploration Ltd. on a business combination transaction. “The purpose of the Proposed Transaction is the creation of a public, TSX Venture Exchange-listed, Mexico-focused, precious metals exploration company utilizing Goldplay’s mineral exploration strategy and experience related to the Rosario District..” in Sinaloa. Upon completion of the transaction the resulting issuer will be named Goldplay Exploration Ltd. and will be listed as a Tier 2 Mining Issuer on the Exchange.
  • Monarca Minerals Inc. entered into a letter of intent (LOI) to acquire the San Jose property in Chihuahua. The 5,580 hectares project shows disseminations, stockwork and veins of skarn, gossan and altered intrusive rocks. The terms of the LOI include a US$20 K payment on execution of the LOI (paid), US$20 K on execution of the definitive agreement, US$50 K on the first anniversary, and US100 K on the second anniversary, with the owners retaining a 2% NSR, of which one percent can be purchased by Monarca for US$100 k. Back taxes on the property of US$390 K will be paid over a period of time. Concession taxes per year are approximately US$46 K.
  • Starcore International Mines Ltd. entered into a letter of intent (LOI) with Eduardo de la Peña Gaitan and other owners, to acquire the 21,000 hectare Santa Fe project in Sinaloa. Starcore has up to 120 days to conduct due diligence work, and 30 days to complete the acquisition. Starcore is to issue 5 M shares to the owners upon signing, and will be released on four installments, and pay US$6 M as follows: US$2 M on execution; US$1 M on 18 months; US$1 M on 36 months; US$1 M on 48 months; US$1 M on 60 months.
  • Camrova Resources Inc. (Baja Mining Corp.) informed that its interest in Minera y Metalurgica del Boleo S.A. P.I, de C.V. has been reduced from 10% to 7.3%. This is a result of Korea Resource Corporation funding Camrova’s pro rata ($42.9 M) on cash calls amounting $429 M. The Boleo project is to annually produce 30 K tonnes Cu, 700 tonnes Co, 10,500 K tonnes Zn sulfate (Boleo, Baja California).
  • Bacanora Minerals Ltd. announced that it filed a statement of claim seeking to void ab initio, a 3% gross over-riding royalty held by the Estate of Colin Orr-Ewing over certain of Bacanora assets in Sonora. The company also announced amendments to the employment arrangements of certain members of the executive management firm.
  • Bacanora Minerals Ltd. has been served by the estate of the late Ian Colin Orr-Ewing with legal proceedings filed on September 20th September 2017, on a dispute regarding the ownership of 3% gross overriding royalties over Bacanora’s Sonora Lithium project and Magdalena Borates project. The Estate currently owns 8.15% of the common shares of Bacanora.
  • Golden Goliath Resources Ltd. has now received the fifth in a series of seven optional payments from Fresnillo PLC for the properties optioned to them in the Uruachic mining district in Chihuahua. This $100 K payment is to be followed by another $100 k due on May 2018 and a final US$2.3 M payment on November 2018, if Fresnillo is to keep the property. Golden Goliath plans to use the final payment to pay for the drill program on its 100% owned San Timoteo property in Chihuahua.
  • Prize Mining Corp. entered into an agreement with Scion Mines S.A. de C.V. to acquire 100% interest in the Manto Negro copper project in Coahuila, by issuing 6 M shares with a restricted lock-up and restricted resale period. Six million shares more are to be issued if the next milestones are met on a 43-101 technical report: 2 M bonus shares if the estimated copper resource is over 500 M Lb; 2 M bonus shares if the estimated copper resource is over 750 M Lb; 2 M bonus shares if the estimated copper resource is over 1 B Lb.

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

On the picture below, magnetite-chalcopyrite mineralization on drill core from Las Minas, Veracruz. Photo by Mexican Gold Corp. on its Nov 23rd, 2017 press release.

Core from Las Minas, Veracruz, photo from press release in Nov 2017

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

/ Gambusino Prospector / Leave a comment

During the 46th week of the year (November 13th to November 19th, 2017), at least 33 press releases were announced by companies working in Mexico, including four quarterly reports. ON MEXICO ISSUES: The Mexican environmental agency (PROFEPA) suspended Santacruz Silver Mining Ltd. operations at the Veta Grande mill in Zacatecas. ON EXPLORATION: six companies informed on exploration efforts during the week: In Sonora Aztec Minerals announced drilling is underway at the Cervantes project; Colibri has new drill targets at El Pilar project. In Chihuahua, Silver Spruce is on the drill permitting process stage for its Pino de Plata property; Endeavour released drill results with bulk mining potential at its Parral project. In Coahuila Alset Minerals  applied for over 400 K hectares of ground in mining concessions, looking for lithium brines. In Sinaloa, Santana Minerals disclosed high-grade historical assays from the Lupita prospect, in its Cuitaboca project.  ON MINING: Mag Silver, Leagold Mining, Primero Mining and Starcore International presented quarterly results. Vangold Mining informed of a sampling program to measure the backfill resource at the Pinguico property in Guanajuato. Telson Resources delivered the first concentrates from Campo Morado, in Guerrero. In Zacatecas, operations at Santacruz Silver’s mill in Vetagrande, Zacatecas were suspended by PROFEPA. ON FINANCING: This was definitely a good week, with six companies reporting the opening or closing of financing rounds: VVC Exploration, Over CA$2.6 M; MAG Silver, $48.16 M; Kootenay Silver, $4 M; Gainey Capital, $717.8 K (for a total of $1.96 M). ON RESOURCES AND DEVELOPMENT: Mexican Gold Corp released high grade results from four step out holes at its Las Minas property in Veracruz. Consolidated Zinc is modifying its plans to mill over 250 K tonnes per annum at its Plomosas property in Chihuahua. Silver Bull released high-grade Ag-Cu drill results from drilling the sulfide zone at its Sierra Mojada property in Coahuila. Oceanus disclosed high-grade results from the first hole on its new drill campaign at El Tigre, in Sonora.  ON DEALS AND CORPORATE ISSUES: Argonaut Gold is to acquire the Cerro del Gallo property in Guanajuato, from Primero mining, for US$15 M, including VAT.

ON MEXICO ISSUES

  • PROFEPA (Mexico’s environmental enforcement agency) temporarily suspended operations at the Vetagrande mill in Zacatecas, citing inadequate atmospheric emission controls. Santacruz Silver Mining Ltd. failed to present an environmental permit, equipment maintenance registers or an inventory of atmospheric emissions. Primero Mining received VAT refunds from the SAT (Servicio de Administracion Tributaria) of $4.6 M during Q3, and $10.6 M during October.

ON EXPLORATION

  • Alset Minerals Corp. staked and filed mineral claims for over 400 K hectares of prospective lithium-rich salars in Coahuila. The claims contain the dry lagoons of Mayran (one of the biggest dry lakes in Mexico), Viesca and Los Remedios, in an area of 150 km (N-S) by 125 km (E-W). At Viesca there is history of commercial brine extraction by Sulfatos de Viesca.
  • Aztec Minerals Corp. along with partner Kootenay Silver Inc. announced that phase one of the drilling program is underway at its Cervantes project in Sonora. The program consists of 3,000 m on 14 to 17 holes to test: 1) A gold anomaly in soil and rock chip surveys 600 m by 900 m over quartz-feldspar porphyry and intrusive breccias at the California prospect. 2) Au-Cu mineralization on the Jasper target. 3) A geophysical chargeability/resistivity anomaly.
  • Colibri Resource Corp. is changing the mineralization model at its El Pilar project in Sonora. The mineralization is hosted in andesites along the contact with a granodiorite, but recent drilling confirmed that a supposed strike slip fault is not present, increasing the potential for gold carrying pyrite rich zones associated to two structures in the andesites. New drill targets have been defined, with chargeability anomalies also to be tested.
  • Silver Spruce Resources Inc. has restarted the permitting process for initiating a drill program at its Pino de Plata project in Chihuahua. Drill companies have visited the 397 hectares property and are to submit bids on the drilling program that is to test three zones. The El Terrero target consists of disseminated epithermal mineralization in intrusive rocks, with grab samples of up to 557 g/t Ag. The Teodora vein targets have verification samples with up to 553 g/t Ag. The Santa Elena target area shows replacement Ag-Pb-Zn-Cu mineralization.
  • Endeavour Silver Corp. discovered additional potential bulk tonnage silver mineralization in the Palmilla area of its Parral project in Chihuahua. “ Endeavour drilling has outlined lower grade, bulk tonnage mineralization above and along strike of the old workings that may be amenable to open pit mining”. The true width mineralized intervals averaged 10.1 m @ 92 g/t Ag, 0.2% Pb, 0.4% Zn (Each mineralized interval on one of the Capuzaya, Palmilla and La Luz veins). Endeavour has already an historic resource at the Veta Colorada vein, and is continuing with drilling at the San Patricio vein. A new resource for the Parral property is to be released by Q1, 2018.
  • Santana Minerals Ltd. disclosed a review of historic data that shows high-grade silver mineralization in the La Lupita prospect, part of its Cuitaboca project in Sinaloa. Of a total of 24 samples collected by Peñoles in a 130 m long stretch, nine returned values between 200 g/t Ag and 786 g/t Ag, with an average (on the 24 samples) of 220 g/t Ag, 0.3 g/t Au. Previously reported saw channel sampling by Santana on the same zone returned 7 m @ 161 g/t Ag, 1.1 m @ 158 g/t Ag, 2.9 m @ 281 g/t Ag, 1.65 m @ 514 g/t Ag.

ON MINING

  • Vangold Mining Corp. started a grading and sampling campaign on the surface 200 K stockpile at its Pinguico property in Guanajuato. The company also intends to clean the underground workings in order to access and sample the mine back fill, which they estimate to have the potential to reach 500 K tonnes. The back fill comprises material that did not reach the 15 g/t Au cut off that was being mined in 1913. Both above ground and underground material is to be tested metallurgicaly to define processing methods.
  • Mag Silver Corp. released its third quarter 2017 financial results. During the quarter underground development has been intensified to allow for a planned increase to 4,000 tpd in mining rate, permitting is in process for the planned production increase, and a 20,000 m exploration drill program commenced in July, with three rigs on the surface and one underground. An independent feasibility study (FS) is due by early 2018. The company had $121.6 M in cash and cash equivalents at the end of the period. A new expanded resource estimate was presented on November 7, 2017.
  • Telson Resources Inc. delivered the first zinc concentrates produced at its Campo Morado mine in Guerrero, to Trafigura’s warehouse in Manzanillo, Colima. Up to the first week of November, Telson has produced more than 800 tonnes of zinc concentrate and more than 250 tonnes of lead concentrate.
  • Leagold Mining Corp. reported Q3 2017 production from Los Filos in Guerrero. During the quarter 7,6 M tonnes were moved and 2.1 M tonnes of ore mined @ 0.67 g/t Au, 98 K tonnes were mined from underground @ 7.43 g/t Au, with a recovery rate of 70% (estimated at 80% from underground material) to produce 47,766 Oz Au at an all-sustaining cost (AISC) of $993. An expanded resource estimate for the Bermejal underground deposit was released, and 38,581 m of a 56,000 m drilling campaign were also completed. The company held $52.9 M of cash and cash equivalents at the end of the period.
  • Primero Mining Corp. reported operating and financial results for the third quarter 2017. At San Dimas in Durango, 110.2 K tonnes were mined and 114.7 K tonnes milled (1,246 tpd) @ 4.78 g/t Au, 301 g/t Ag, recovering 97% Au, 94% Ag, to produce 17,070 Oz Au, 1.1 M Oz Ag (or 20,537 Oz AuEq), at cash cost $884 AuEq and AISC of $1,117 per ounce. Production at San Dimas was affected by persistent issues with underground equipment reliability which impacted development and stoping, and a strike by unionized workers over the negotiation of the 2016 annual workers’ bonus. Cash at end of period was $14,9 M, which increased to $22 M by the end of October.
  • Starcore International Mines Ltd. announced production results for the second quarter of fiscal 2018, ended on October 31st, 2017. During the quarter 69.7 K tonnes were milled @ 1.56 g/t Au, 13.6 g/t Ag, recovering 80.9% Au and 54% Ag, to produce 2,739 AuEq Oz. the Altiplano Facility received 137.2 K tonnes of concentrate and 311 Kg of precipitates containing 197 Oz Au, 13,650 Oz Ag. Also during the quarter 94 Oz Au and 20.3 K Oz Ag were sold.
  • Santacruz Silver Mining Ltd. reported that the Mexican Environmental Protection Agency (PROFEPA) requested that the subsidiary operating the Veta Grande mill hold the environmental license directly on its name. The documents were submitted on November 8th, and the company expects the imminent resumption of operations at the mill. The mining operations and mill maintenance have continued through this time period.

ON FINANCING

  • VVC Exploration Corp. issued last week shares and warrants for CA$1.4 M, pursuant to the first closing, shares and warrants were issued for gross proceeds of CA$1.26 M. Insiders of the company subscribed for an aggregate of CA$200 K (Samalayuca, Chihuahua).
  • MAG Silver Corp. announced a non-brokered private placement with some shareholders for up to $44 M in gross proceeds. Later on the week MAG informed that the offering was increased for total gross proceeds of $ $48.16 M. MAG intends to use the net proceeds of the offering to fund exploration and development of the Juanicipio Project, in Zacatecas, and for working capital and general corporate purposes (Juanicipio, Zacatecas).
  • Kootenay Silver Inc. announced the opening of a non-brokered private placement of up to $4 M (La Cigarra, Chihuahua).
  • Gainey Capital Corp. closed the second and final tranche of its previously announced private placement, for gross proceeds of $ 717.8 K. Total gross proceeds for the offering are $1.96 M (El Colomo, Nayarit).
  • Mexican Gold Corp. informed its largest share holder, Palisade Global Investments Ltd. exercised warrants for gross proceeds of $833 K (Las Minas, Veracruz).

ON RESOURCES AND DEVELOPMENT

  • Mexican Gold Corp. released results from four step-out holes at its Las Minas project in Veracruz. The highlighted intervals include: 54.0 m @ 3.9 g/t Au, 13 g/t Ag, 1.7% Cu (including 38 m @ 5.4 g/t Au, 17 g/t Ag, 2.2% Cu); 19.0 m @ 2.1 g/t Au, 0.2% Cu (including 5.0 m @ 4.6 g/t Au, 0.4% Cu); 21.35 m @ 1.3 g/t Au, 0.7% Cu (including 11.35 m @ 2.2 g/t Au, 1.0% Cu) in one hole, and 9.0 m @ 0.9 g/t Au, 11 g/t Ag, 1.4% Cu; 8.0 m @ 1.3 g/t Au, 0.4% Cu; 12.80 m @ 0.8 g/t Au, 8 g/t Ag, 1.2% Cu. The drilling increased the strike width of the initial resource to 365 m (a 65 m increase) by 395 m. The rig is back to this zone to commence infill and resource expansion drilling near the drill intercept outlined above.
  • Consolidated Zinc Ltd. is expanding the plans outlined in the recent scoping study on its Plomosas property in Chihuahua. The company is now evaluating the opportunity targeting over 250 K tonnes per annum over a mine life of 7 to 10 years.
  • Silver Bull Resources Inc. released results from the sulfide zone at its Sierra Mojada property in Coahuila. Highlighted drill intercepts comprise: 16 m @ 396 g/t Ag, 1.6% Cu (including 5 m @ 379 g/t Ag, 3.2% Cu; 6 m @ 610 g/t Ag, 1.1% Cu); 7 m @ 370 g/t Ag, 0.8% Cu; 4.8 m @ 352 g/t Ag, 0.6% Cu. The sulfide zone sits below the current Sierra Mojada’s oxide resource, along a steeply dipping fault, remaining open to depth and over 3 km along strike.
  • Oceanus Resources Corp. reported results from the first hole of the current drill campaign in the Caleigh vein at its El Tigre property in Sonora. The hole returned 0.75 m @ 10.9 g/t Au, 2,830 g/t Ag, encountering also the low grade hanging wall alteration zone adjacent to the vein, with 25.75 m @ 0.65 g/t Au, 92 g/t Ag. “The true width has not been calculated for the intercepts, however true width is generally estimated at 75% to 90% of drilled width.”

ON DEALS AND CORPORATE ISSUES

  • Argonaut Gold Inc. reached an agreement with Primero Mining Corp. regarding the acquisition of the Cerro del Gallo project in Guanajuato. Under the deal Argonaut is to purchase all the shares of the Primero Mining subsidiary that holds the property for a cash consideration of $15 M (including VAT), payable on closing.

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

On the picture below, beautifully banded epithermal quartz vein from a prospect on the Durango Altiplano. Photo by Jorge Cirett.

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

/ Gambusino Prospector / Leave a comment

During the 45th week of the year (November 6th to November 12th, 2017), at least 31 press releases were announced by companies working in Mexico, including nine quarterly reports. ON MEXICO ISSUES: No relevant news. ON EXPLORATION: seven companies informed on exploration efforts during the week: In Sonora Millrock finalized the first phase of exploration at its Navidad project with rock chip sampling and geophysical surveys; Sonoro provided an initial description and work plan at the newly optioned Calera property. In Chihuahua Consolidated Zinc released high-grade Zn-Pb rock chip results 2.5 km from its resource area at Plomosas. In Coahuila Discovery Metals presented high-grade Ag-Pb-Zn rock chip and channel results from its Puerto Rico and La Kika properties. Southern Silver informed on exploration work at its Creston del Oro, Biznagas and Los Lenchos concessions. In Hidalgo, Prospero Silver reported drilling results from the first drill testing ever of the Petate project. ON MINING: Fortuna Silver, Golden Minerals, Avino Silver, Pan American Silver, Premier Gold, Alio Gold, Torex Gold and Sierra Metals presented third quarter results. Torex Gold informed in three press releases on the work stoppage at its  El Limon – Guajes mine in Guerrero, resulting from the dispute between two unions. ON FINANCING: Advance Gold and Mammoth Resources are going ahead with non-brokered private placements for up to $200 K and $720 K respectively; Excellon closed a public bought deal offering, raising $14.8 M. ON RESOURCES AND DEVELOPMENT: Southern Silver released results from its last hole of the 2017 campaign, with two high-grade Zn intercepts.  ON DEALS AND CORPORATE ISSUES: Discovery Metals informed of the sudden death of its Vice-president Exploration, Peter Drobeck. Goldcorp informed that the sale of the Camino Rojo project in Zacatecas to Orla Mining has been completed. Sierra Metals informed of the appointment to the board of Jose Vizquerra. Magellan Gold informed the purchase of the SDA mill in Nayarit is approaching completion. Sable Resources announced the signing of definitive agreements on the acquisition of BlueJoint Resources, which has an extensive land position in Mexico. Sonoro Resources optioned the Calera property in Sonora.

ON MEXICO ISSUES

  • No Relevant News.

ON EXPLORATION

  • Southern Silver Exploration Corp. disclosed exploration work on its Creston del Oro, Biznagas and Los Lenchos claims, which are contiguous to its Cerro Las Minitas property in Durango. Over 1400 rock chip and float samples have been collected, revealing a NW-SE corridor greater than 12 km in length, anomalous in precious metals and pathfinder elements. Targeting for an early 2018 RC drill campaign is to base on the multiple distinct clusters and trends seen.
  • Discovery Metals Corp. released results from 32 channel samples at its Puerto Rico project in Coahuila. The samples were collected on the southern part of the project, from the Puerto Rico, San Jose and Zaragoza mines, in manto style mineralization, as well as high-angle breccias, fracture zones and chimney features. Results include 0.8 m @ 202 g/t Ag, 22.3% Pb, 0.7% Zn, 0.16% Cu; 2.0 m @ 242 g/t Ag, 25.2% Pb, 6.3% Zn, 0.19% Cu; 3.5 m @ 506 g/t Ag, 3.5% Pb, 21.9% Zn, 0.11% Cu at Zaragoza; 10.5 m @ 25 g/t Ag, 1.6% Pb, 18% Zn, 0.15% Cu; 4.0 m @ 519 g/t Ag, 29.7% Pb, 17.3% Zn, 0.44% Cu; 3.0 m @ 1,480 g/t Ag, 31.9% Pb, 0.1% Zn, 0.41% Cu at San Jose; and 4.0 m @ 230 g/t Ag, 15.0% Pb, 26.3% Zn; 1.5 m @ 316 g/t Ag, 23.0% Pb, 15.0% Zn; 5.0 m @ 25 g/t Ag, 1.8% Pb, 31.1% Zn; 6.0 m @ 615 g/t Ag, 20.8% Pb, 24.3% Zn; 1.6 m @ 477 g/t Ag, 11.8% Pb, 2.4% Zn, 11.2% Cu at Puerto Rico.
  • Discovery Metals Corp. released panel and channel sampling results from its La Kika project in Coahuila. Numerous prospect pits are scattered over a 200 by 200 m area, showing high-grade Ag-Pb-Zn carbonate replacement mineralization as subhorizontal mantos and subvertical chimney-like structures with massive oxides of Zn-Pb-Ag-Cu. Results include 0.7 m @ 600 g/t Ag, 30.1% Pb, 8.3% Zn, 0.44% Cu; 0.5 x 1.0 m panel @ 35.5% Zn, 1.2% Cu; 1.0 x 0.5 m panel @ 160 g/t Ag, 10.0% Pb, 16.7% Zn, 0.24% Cu; 0.6 m @ 258 g/t Ag, 11.2% Pb, 12.4% Zn; 1.0 x 0.5 m panel @ 420 g/t Ag, 18.9% Pb, 1.2% Zn.
  • Consolidated Zn Ltd. announced results of first pass rock chip sampling at the Alfonsitos prospect, 2.5 km NW from its Plomosas mine in Chihuahua. Grades of up to 18.5% and 24.3% Zn+Pb were obtained from workings and outcrops respectively. Alfonsitos is the first of several prospects identified by reconnaissance exploration and geophysical surveys.
  • Millrock Resources Inc. reported that its first phase of exploration at La Navidad project, targeting orogenic style mineralization, is now complete. A 1,082 samples soil survey has returned 248 samples with values greater than 50 ppb Au, while 83 rock chip samples of a total of 575 returned greater than 0.5 g/t Au. A ground magnetic survey covering 82 line-km and a 20 km induced polarization survey were also carried out in the property. Three prospects have been identified, Anchor, Horseshoe and Cobre, with rock sampling returning 24 m @ 0.9 g/t Au; 12 m @ 1.1 g/t Au; 14 m @ 0.8 g/t Au. A 2,000 m drill program on nine holes is in progress.
  • Prospero Silver Corp. provided a preliminary update on the first stage reconnaissance drilling at its Petate property in Hidalgo. Eight shallow holes have been completed with the aim to establish structure and better aiming at deeper targets. The initial holes were drilled at the Apartadero zone, which shows multiple jasperoid outcrops in limestone. Mineralized intercepts include 18.5 m @ 0.8 g/t Au, 5 g/t Ag; 3.4 m @ 3.5 g/t Au, 2 g/t Ag.
  • Sonoro Metals Corp. provided an initial description of its newly optioned Calera project in Sonora (see below on the deals section). “Large zones of disseminated pyrite replacement in the shallow dipping calcareous shale units are extensive with coincident regolith gold placer within the concessions. Local altered felsic dikes cut the mineralized meta-sedimentary rock units and may be associated with mineralization”.  Initial work is to surface sample the concession area, where multiple old prospect pits are located, and a soil sample program on east-west lines to identify targets for further exploration.

ON MINING

  • Torex Gold Resources Inc. Informed that on November 3rd , a group of approximately 20 local unionized workers illegally blockaded the entrance to the El Limon – Guajes mine in Guerrero. The group of workers demands a change of union, same that can only be accomplished through a government sanctioned process validated by the majority of unionized workers in an assembly. The company shut down the processing plant in an orderly manner, and stated that during the stoppage there will be a focus on maintaining environmental protections.
  • Torex Gold Resources Inc. reported that on November 6th a group of approximately 35 persons entered the El Limon – Guajes mine site in Guerrero and threatened the site staff. Care and maintenance activities resumed on November 8th. The Company has requested to the appropriate authorities that they take action to restore law and order that has been disrupted by a conflict between two unions. “Excellent political support has been received from State and Federal governments to advance the legal charges and to find a negotiated resolution to the dispute between the two syndicates.”
  • Fortuna Silver Mines Inc. reported its financial results for the third quarter 2017. During the period 263.7 K tonnes were milled (3,038 tonnes per day, or tpd) @ 229 g/t Ag, 1.71 g/t Au, recovering 91% Ag, 91% Au to produce 1.77 M Oz Ag, 13,248 Oz Au at all-in sustaining cost of $7.75 per Oz Ag. At the end of September the company had cash and cash equivalents for $195.8 M.
  • Golden Minerals Co. presented its third quarter 2017 results. During the period Golden expanded the Santa Maria project in Chihuahua by acquiring adjacent claims, and begun two 1,500 m drill programs on Santa Maria and the Velardeña properties in Durango. The lease on its oxide mill to Hecla was extended to 2020. The company spent $6.2 M and received $8.6 M during the first nine months of the year, ending the third quarter with $5.0 M in cash and cash equivalents.
  • Avino Silver Gold Mines Ltd. announced the consolidated financial results for the third quarter 2017. During the period 138.2 K tonnes were milled to produce 368.4 K Oz Ag, 2,673 Oz Au, 1.1 M Lb Cu at cash cost $9.74 per AgEq Oz, and AISC $11.25 per AgEq Oz. The company had revenues of US$8.4 M during the period, with US$3.8 M in cash and US$4.0 M in short term investments by the end of September.
  • Pan American Silver Corp. reported unaudited net earnings for Q3 2017, including figures from its Mexican operations. During the period the company produced 1.83 M OzAg, 1,210 Oz Au at La Colorada, in Zacatecas, and 0.97 M OzAg, 24,960 OzAu at Dolores in Chihuahua, at cash cost of $1.71 and ($0.57) per AgOz, net of by-product credits, respectively. At Dolores, ramp-up of the new pulp agglomeration plant started in August, with the plant processing 120 K tonnes of high grade ore in Q3. Heap leach stacking rates reached 20 K tpd, and underground mining is to commence before the end of 2017. At La Colorada mining and processing rates averaged 1,906 tpd, exceeding design rates of 1,800 tpd.
  • Premier Gold Mines Ltd. disclosed third quarter 2017 results, including figures from its Mercedes mine in Sonora. At Mercedes 156.4 K tonnes were milled @ 3.88 g/t Au, 36 g/t Ag, to produce 18,564 Oz Au, 82.8 K Oz Ag. Recovery rates were 95.4% Au 45.2% Ag, with co-product cash cost of $793 per OzAu, co-product AISC of $998 per Oz Au, co-product cash cost of $10.35 per OzAg, co-product AISC of $13.49 per OzAg. Up to ten underground and surface drill rigs were operating during the period. At the end of the period the company held $171.8 M in cash and cash equivalents.
  • Alio Gold Inc. provided third quarter 2017 results. At its San Francisco mine in Sonora, Alio produced 19,429 Oz Au at cash cost $884 and all-in sustaining cost of $1,104 per OzAu. The revitalization plan of the pit includes moving 22 M tonnes of waste from the San Francisco Main and La Chicharra pits. Also during the period the company completed a bought deal financing for C$50.4 M, received the land use permit for its Ana Paula project in Guerrero, where a decline was permitted and contracts awarded. At the end of September the company had $68.5 M in cash and short term investments.
  • Torex Gold Resources Inc. presented financial results for the third quarter 2017. During the quarter the El Limon-Guajes mine moved 8.7 M tonnes, averaging 94.4 K tpd, with the plant processing 1.15 Mt (12,522 tpd) @ 2.35 g/t Au to produce 67,333 Oz Au at a gold recovery rate of 87%. Total cash cost was $728 per OzAu and AISC of $1,035 per OzAu.
  • Sierra Metals Inc. reported consolidated results for the third quarter 2017, including information from its Mexican operations. At Bolivar in Chihuahua, mine development totaled 942 m, while at Cusi, also in Chihuahua, mine development totaled 1,033 m, and 1,164 m of infill drilling were carried out. Cash cost per CuEq Lb was $1.69 and an AISC per CuEq Lb of $3.32 at Bolivar; At Cusi cash cost per AgEq Oz was $21.95 and AISC per AgEq Oz was $51.93. On exploration, 14,082 m were drilled atBolivar (992 m at El Gallo; 7,168 m at Bolivar NW; 418 m at Chimney 2; 5,504 m at Bolivar W). At the end of the period Sierra Metals had $28.6 M in cash and cash equivalents, and a net debt of $39.9 M.
  • Fortuna Silver Mines Inc. disclosed consolidated results for the third quarter 2017, including figures from its San Jose mine in Oaxaca. At San Jose 263.7 K tonnes were milled (3,038 tpd) @ 229 g/t Ag, 1.71 g/t Au, with recoveries of 91% Ag, 91% Au, to produce 1.77 M Oz Ag, 13,248 Oz Au. Cash cost was $1.53 per OzAg and AISC was $7.75. The company had $195.8 M in cash, cash equivalents and short term investments by the end of the period.

ON FINANCING

  • Advance Gold Corp. is to undertake a non-brokered private placement to raise up to $200 K in gross proceeds (Tabasqueña, Zacatecas).
  • Excellon Resources Inc. closed the previously announced bought deal public offering, for aggregate gross proceeds of $14.8 M. With the purchase of $2.5 M in shares, Eric Sprott now owns a 19.2% interest in the company on a non-diluted basis (Platosa, Durango).
  • Mammoth Resources Corp. announced a non-brokered private placement, intending to raise up to $720 K to drill its Tenoriba property in Chihuahua.

ON RESOURCES AND DEVELOPMENT

  • Southern Silver Exploration Corp. released results from the last hole drilled in 2017 on its Cerro Las Minitas project in Durango. The hole intersected 2.1 m (estimated true width, TW) @ 88 g/t Ag, 0.2% Pb, 10.3% Zn and 1.5 m @ 30 g/t Ag, 0.1% Cu, 20.7% Zn. Southern Silver is in the process of reviewing, modelling and compiling the 2017 drill results aiming to produce an updated mineral resource estimate in the coming weeks.

ON DEALS AND CORPORATE ISSUES

  • Discovery Metals Corp. informed the sudden passing away of Peter Drobeck, its vice president of exploration. Peter Drobeck had a career of over 35 years in exploration, having worked for companies like Silver Standard, AuRico Gold, Electrum USA and Newcrest, before joining Discovery Metals earlier in 2017 (Note of compiler.- Peter worked for decades in Mexico for different companies, leaving many friends in the industry. He will be missed greatly).
  • Goldcorp Inc. announced the completion of the sale of the Camino Rojo project in Zacatecas to Orla Mining Ltd., following the receipt of Mexican anti-trust approval. Goldcorp acquired 19.9% of Orla’s shares. The Camino Rojo project has 1.7 M Oz Au in reserves and 7.5 M Oz Au in measured and indicated resources.
  • Sierra Metals Inc. appointed Jose Alberto Vizquerra-Benavides to its board of directors, and Sierra Metals Audit Committee. Mr. Jose Vizquerra is currently executive vicepresident of strategic development and a director at Osisko Mining Inc. (Cusi and Bolivar, Chihuahua).
  • Magellan Gold Corp. informed that the purchase of the SDA mill in Nayarit from Rose Petroleum PLC is nearing conclusion. The parties anticipate the closing to occur during November 2017.
  • Sable Resources Ltd. announced that it has entered into definitive agreements for the acquisition of BlueJoint Resources Inc. and Western Canada Greenfields Group Inc. “the Acquisitions will be structured in the form of a three-cornered amalgamation, pursuant to which each of BlueJoint and WCG will amalgamate with a wholly-owned subsidiary of Sable”. BlueJoint systematically explored 1.74 million hectares in 10 target areas considered highly prospective and underexplored for precious metal epithermal mineralization in Mexico (Vinata, Chihuahua; Escarpe, Queretaro).
  • Sonoro Metals Corp. entered into an option agreement with a private Mexican resident to acquire the 144 hectares Calera project in Sonora. The deal portrays the payment in six years of $1 M in six installments of increasing cost, and a 2% NSR that can be bought by Sonoro for $650 K at any time

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

On the picture below, beautifully banded epithermal quartz vein from a prospect on the Durango Altiplano. Photo by Jorge Cirett.

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

/ Gambusino Prospector / Leave a comment

During the 44th week of the year (October 30th to November 5th, 2017), at least 33 press releases were announced by companies working in Mexico, including nine quarterly reports. ON MEXICO ISSUES: No relevant news. ON EXPLORATION: seven companies informed on exploration efforts during the week: In Sonora SilverCrest informed on metallurgical test results from drill core material of its Las Chispas property; Riverside continues with ground magnetics, an IP survey and soil sampling on its Glor project, funded by Centerra; Minaurum released good drilling results from its Alamos property. In Chihuahua Golden Goliath continues exploration at San Timoteo; Prospero Silver prepares to drill its Bermudez project. In Sinaloa, Auxico released metallurgical results from its Zamora property. In Zacatecas Defiance Silver commenced a two rig drill campaign on the Veta Grande vein in its San Acacio project. ON MINING: Great Panther, Grupo Mexico, Endeavour Silver, Americas Silver, Excellon, Alamos Gold, McEwen Gold, Argonaut and First Majestic reported third quarter results. In Sonora, Corex Gold is testing different crushing sizes for the heaps, and received the first compensation for gold produced at its Santana property. In Zacatecas, Starcore removed all senior personnel from its Matehuala plant. ON FINANCING: San Marco completed a private placement for $1.26 M and Vangold is to raise up to $1.57 M with a non-brokered private placement. Telson signed a $15 M credit facility with Trafigura. GoGold is to repay a $46.5 M debt and a $7.5 M credit with the proceeds of the sale of Santa Gertrudis. ON RESOURCES AND DEVELOPMENT: Starcore highlighted the increase in resources, metallurgical testing and work on the scoping study on its Plomosas property. Almaden reported grades on one more in-fill hole at its Ixtaca property. Bacanora secured access to its Sonora property. Hecla provide high-grade exploration results on its San Sebastian mine.  ON DEALS AND CORPORATE ISSUES: Vangold executed the purchase agreement of land on its Pinguico property. GoGold announced the completion of the sale of the Santa Gertrudis project to Agnico Eagle.

ON MEXICO ISSUES

  • No Relevant News.

ON EXPLORATION

  • SilverCrest Metals Inc. disclosed results from initial metallurgical sampling of mineralization from its Las Chispas property in Sonora. These results show that Las Chispas mineralization appears to be amenable to standard cyanidation processing, with average recoveries of 98.9% Au, 86.6% Ag. Nineteen core samples were combined into three bulk composites, with partly oxidized and non-oxidized material. Further metallurgical test work is to be completed after the announcement of a maiden resource in Q1 2018.
  • Auxico Resources Canada Inc. released metallurgical results from a 2 Kg metallurgical sample from a volcanic breccia in the footwall of the Campanillas mine, at its Zamora property in Sinaloa. The test returned 13.8% Au, 8.6% Ag recovery by gravity, 67.8% Au, 89.1% recovery by flotation, for total recoveries of 71.6% Au, 92.9% Ag.
  • Defiance Silver Corp. commenced a two-rigs phase II 5,000 m drill core program targeting new high-grade silver shoots along 900 m of the Veta Grande vein, SE from the San Acacio deposit in Zacatecas.
  • Golden Goliath Resources Ltd. received a report on its San Timoteo property in Chihuahua. The report stresses the presence of several strong systems of mineralized structures with potential for bonanza zones and a deeper Cu-Au porphyry system. Known zones within the Level 5 of the San Timoteo vein contain a 78 m long shoot @ 0.6 g/t Au, 68 g/t Ag and a 32 m long shoot @ 0.3 g/t Au, 212 g/t Ag.
  • Riverside Resources Inc. updated on exploration work in progress at its Glor property in Sonora, alongside its partner Centerra Gold Inc.. The work is focusing on the central part of the property, where samples of up to 14 g/t Au have been collected, with a detailed ground magnetic survey covering 210 hectares with 80 line-kilometers, 14 line-kilometers on an induced polarization survey, and an 850 sample soil program.
  • Prospero Silver Corp. received all necessary permits to carry a first-pass drill program at Bermudez, in Chihuahua. Prospero can now proceed with a drilling campaign funded by Fortuna Silver Mines Inc. to test a low sulfidation epithermal vein system exposed over a 2.5 km by 50-100 m area. Anomalous Au, Ag, Ba and Zn, along with the quartz vein textures support the interpretation of this being a shallow zone in the epithermal system.
  • Minaurum Gold Inc. released results from the first five holes (1,342 m) at its Alamos project in Sonora. Relevant intercepts on the Promontorio vein: 20.15 m @ 154 g/t Ag, 0.23 g/t Au, 0.5% Cu, 2.3% Pb, 6.8% Zn; 8.50 m @ 81 g/t Ag, 0.13 g/t Au, 0.1% Cu, 3.2% Pb, 2.7% Zn; 3.15 M @ 322 g/t Ag, 0.28 g/t Au, 0.5% Cu, 1.6% Pb, 3.3% Zn. At the Blind Vein/Southern Nueva Europa target an interval of 0.25 m @ 8 g/t Ag, 0.9% Pb, 2.4% Zn validated the idea of blind veins on the area. At the Minas Nuevas target the 17.65 m @ 96 g/t Ag and 13.05 m @ 54 g/t Ag intercepts confirm the potential for bulk-tonnage orebodies.

ON MINING

  • Starcore International Mines Ltd. is changing its senior management and sales personnel at the Altiplano processing plant in Matehuala, San Luis Potosi. Operational duties will be assumed by existing Starcore management, assisted by the services of a newly appointed consultant specializing in the procurement of concentrates.
  • Great Panther Silver Ltd. reported financial results for the third quarter 2017. Consolidated production was 532.8 K Oz Ag, 5,848 Oz Au, at a cash cost of $12.37 per AgEq Oz and AISC of $16.42 per AgEq Oz. The company held $55.5 M of cash and short term deposits at the end of the period.
  • Grupo Mexico S.A.B. de C.V. presented its Q3 report for 2017. During the period the Buenavista expansion in Sonora was completed in time, and US$101 M under the budgeted US$3,265 M, increasing the Cu production from 180 K to 500 K tonnes per year. The crushing and conveyor belt system for leaching material was also finished on time and US$117 M below the US$444 M budget. At the Buenavista Zinc project, basic engineering has been completed and the detailed engineering phase commenced; this project is to produce 80 K tonnes of Zn and 20 K tonnes of Cu per year, starting on 2020. At Pilares, an open pit mine is to produce ore for the La Caridad mill; an investment of $159 M is expected, in order to produce 34.5 K tonnes of Cu/year by 2019. During the period, 262.7 K tonnes of copper (at cash cost US$1.08), 5,581 tonnes of moly, 18,857 tonnes of zinc, 3.6 M Oz Ag, 43,665 Oz Au, 717.6 K tonnes of sulfuric acid were produced.
  • Corex Gold Corp. received US$278.7 K from gold recovered from the first gold-in-carbon concentrate from the Santana heap-leach project in Sonora. The company is testing different crushing sizes for the ore material staked on the heaps.
  • Americas Silver Corp. announced financial and production results for the third quarter of 2017, including figures from its Mexican operations. At the Cosalá operations in Sinaloa, with ore from the Nuestra Señora, El Cajón and San Rafael mines 134.7 K tonnes were processed @ 74 g/t Ag, to produce 277.7 K Oz Ag, 1.43 M Lb Zn, 793 K Lb Pb, 507 K Lb Cu, or 528.8 AgEq Oz. The operations are transitioning from Nuestra Señora mine to the newly developed San Rafael mine, from where all the ore to be processed is expected to be mined during November. Cash cost and All-in sustaining cost was $3.16 per silver ounce. The company had $8.7 M in cash and cash equivalents at the end of the period.
  • Endeavour Silver Corp. presented its third quarter 2017 financial report. During the period 1.26 M Oz Ag, 13,648 Oz Au were produced at its Guanaceví (Durango), Bolañitos (Jalisco) and El Cubo (Guanajuato) at cash cost $11.74 per Oz Ag and AISC $17.53 per Oz Ag. Development commenced at El Compas mine in Zacatecas, where additional prospective ground was acquired, and permits were received for the mine and plant at Terronera, Jalisco. The company had $70.3 M at the end of the period.
  • Excellon Resources Inc. released its third quarter 2017 financial results. During the period its Platosa mine in Durango mined 18.1 K tonnes, processed 19.9 K tonnes @ 409 g/t Ag, 4.4% Pb, 6.1% Zn. Recoveries stood at 87.6% Ag, 81.8% Pb, 81.1% Zn, to produce 226.2 K Oz Ag, 1.58 M Lb Pb, 2.17 M Lb Zn, or 500.7 K AgEq ounces at cash ton per ton of $208, cash cost of $2.46 per Ag Oz and AISC of $11.62. The optimization plan has resulted in drier mining conditions and significantly improved the cash cost and AISC per Ag Oz produced. The company is currently applying to become a “qualified user” under the recent energy reforms, which will allow Excellon to access the private market for electricity, a key cost on the water pumping to maintain dry mining conditions.
  • Alamos Gold Inc. reported its financial results for the third quarter of 2017, including figures from its Mulatos and El Chante operations in Sonora. At Mulatos (including numbers from La Yaqui, which started commercial production in September first) 2.34 M tonnes of ore and 1.46 M tonnes of waste were mined from open pits, with 1.75 M tonnes @ 0.96 g/t Au stacked on the heaps, while 30.8 K tonnes milled from underground feed @ 10.05 g/t Au, to produce 36,300 Oz Au at cash cost $785 per Oz Au and mine-site AISC of $864 per Oz Au. At El Chanate 1.62 M tonnes of ore and 5.19 M tonnes of waste were mined (2.19 waste to ore ratio) @ 0.48 g/t Au, to produce 14,900 Oz Au at cash cost $1,137 per Oz Au and AISC $1,164 per Oz Au.
  • McEwen Mining Inc. reported consolidated financial results for Q3 2017, with figures from its Mexican operations. During the period 7,189 Oz Au were produced at its El Gallo property in Sinaloa. Production was impacted by the failure of the crushing circuit, impacting the amount of ore placed on the heaps. The failure to the crushing equipment has been corrected and a mobile crusher was added to speed up the placing of ore material on the heaps
  • Argonaut Gold Inc. released third quarter 2017 operating and financial results. At El Castillo in Durango 1.7 M tonnes of ore @ 0.28 g/t Au and 2.4 M tonnes of waste were moved (45 K tonnes per day, tpd, at a waste to ore ratio of 1.40) to produce 11,437 Oz Au and cash cost of $947 per Oz Au. At San Agustin in Durango, pre-commercial production included 1.3 M tonnes of ore and 303 K tonnes of waste moved, with 1.23 M tonnes @ 0.42 g/t Au placed to the pads, to recover 2,690 Oz Au, 16.9 K Oz Ag. At La Colorada in Sonora, 1.1 M tonnes of ore and 4.5 M tonnes of waste were moved (61 K tpd, waste to ore ratio of 4.11), placing 1.3 M tonnes @ 0.50 g/t Au on the heaps to produce 9,518 Oz Au, 21.7 K Oz Ag. Total production from these three mines in Mexico was 23,645 Oz Au, 38.6 K Oz Ag.
  • First Majestic Silver Corp. announced third quarter 2017 financial results. First Majestic has six mies in Mexico: Santa Elena in Sonora, La Escondida in Coahuila, La Parrilla in Durango, Del Toro in Zacatecas, San Martin in Jalisco and La Guitarra in Estado de Mexico. The consolidated production was 2.4 M Oz Ag, or 4.0 M Oz AgEq at a cash cost of $8.52 and AISC of $15.73 per Oz Ag. At the end of the period the company had $120.8 M in cash and cash equivalents, with $34.7 M in debt facilities.  First Majestic Q3 2017 production11

ON FINANCING

  • Vangold mining Corp. is to go ahead with a non-brokered private placement that can accrue up to $1.575 M in gross proceeds. The proceeds are to be used on its Pinguico property in Guanajuato, and for general working capital (Pinguico, Guanajuato).
  • Telson Resources Inc. signed a term sheet of a loan facility and off-take agreement with Trafigura Mexico S.A. de C.V., to sell 100% of the Pb and Zn concentrate produced at the Tahuehueto mine in Durango, from January 2018 to December 2022. Trafigura is to provide Telson a $15 M credit facility upon signing formal agreements.
  • San Marco Resources Inc. completed its previously announced private placement for gross proceeds of $1.26 M, with insiders of the company acquiring over 14% of the issued units. Finder’s fees of $52,283 were paid to four parties (Chunibas and 1068 project, Sonora).
  • Silver Spruce Resources Inc. closed its non-brokered private placement, raising gross proceeds of $132 K, paying $2.5 K as finder’s fee (Pino de Plata, Chihuahua).
  • GoGold Resources Inc. informed that after receiving US$80 M on the sale of its Santa Gertrudis project in Sonora is to use the proceeds to pay in full it’s outstanding US$46.5 M revolving credit facility with the Bank of Montreal and repay the principal and interest on the US$7.5 M loan advanced by Agnico. GoGold is debt free and has a strong cash balance (Parral tailings, Chihuahua).

ON RESOURCES AND DEVELOPMENT

  • Consolidated Zinc Ltd. presented its third quarter 2017 report, highlighting its activities at its Plomosas property in Chihuahua. During the period the mineral resource estimate was increased to 968 K tonnes @ 15.9% Zn+Pb, for 154 K tonnes of contained metal. Metallurgical test work from the Tres Amigos sulfide zone indicate Zn recoveries >90%. The Scoping Study (SS) is near completion, with focus on the Tres Amigos and Las Espadas zones. Additional high-grade Zn+Pb mineralization has been identified, and regional exploration re-commenced.
  • Almaden Minerals Ltd. released assay results from one of the holes from the resource infill drilling program at its Ixtaca deposit in Puebla. The hole returned 180 m @ 1.25 g/t Au, 54 g/t Ag, including 32.5 m @ 2.02 g/t Au, 109 g/t Ag; and 24.15 m @ 1.58 g/t Au, 103 g/t Ag; and 25.0 m @ 4.08 g/t Au, 92 g/t Ag.
  • Bacanora Minerals Ltd. announced that access and surface rights have been secured for its Sonora project in Sonora. “The access and surface rights mainly relate to the land area covering mineral resources contained within the La Ventana, Fleur and El Sauz areas”.
  • Hecla Mining Co. provided an update on its explorations programs, including information on its San Sebastian project in Durango, where three rigs were active on the Middle, Francine and West Francine veins. In-fill drilling on the Middle vein has returned continuous veins averaging 1.07 m (true width) @ 8.09 g/t Au, 1,708 g/t Ag; 1.34 m @ 5.91 g/t Au, 1,285 g/t Ag. New drilling 100 m west and down dip of current development has intercepted 1.22 m @ 0.62 g/t Au, 295 g/t Ag, 3% Cu, 2% Pb, 5% Zn; 1.65 m @ 2.18 g/t Au, 373 g/t Ag, 4% Cu, 6% Pb, 9% Zn. On the Francine vein, 182 m W from the Hugh resource area, two holes intersected 1.10 m @ 0.31 g/t Au, 886 g/t Ag, 6% Cu, 9% Pb, 14% Zn; 1.04 m @ 0.31 g/t Au, 613 g/t Ag; 3% Cu, 12% Pb, 13% Zn. A hole 750 m to the west of the Hugh zone intersected 3.66 m @ 0.31 g/t Au, 193 g/t Ag, 2% Cu, 3% Pb, 4% Zn. Drilling on the East Francine vein, 350 m east of existing workings, intercepted 3.90 m @ 0.3 g/t Au, 460 g/t Ag; drilling along the adjacent East Middle vein intersected 2.44 m @ 1.56 g/t Au, 236 g/t Ag.
  • Alamos Gold Inc. drilled 5,394 m in 42 holes at La Yaqui Grande Deposit in Sonora during the third quarter 2017. True width Intercepts from the zone 3 are believed to be 80-90% of the reported longitude of 35.6 m @ 3.07 g/t Au; 10.80 m @ 6.21 g/t Au; 12.5 m @ 0.88 g/t Au; 22.10 m @ 2.31 g/t Au; 21.3 m @ 1.71 g/t Au; 7.90 m @ 3.80 g/t Au; 5.90 m @ 3.15 g/t Au; 12.0 m @ 0.82 g/t Au; 11.10 m @ 1.88 g/t Au; 15.30 m @ 1.82 g/t Au; 20.0 m @ 1.24 g/t Au; 13.60 m @ 0.55 g/t Au. A number of new prospects are undergoing initial exploration in the 28,777 hectares land package that Alamos Gold holds in the Mulatos district.

ON DEALS AND CORPORATE ISSUES

  • Vangold Mining Corp. executed the land purchase agreement with two private land owners at its El Pinguico property in Guanajuato. The 302 hectares land package includes El Pinguico property and provides significant land area for mining infrastructure. Vangold is committed to pay two annual installments of CDN $4,500 with a final payment of CDN $65 K on the third anniversary.
  • GoGold Resources Inc. announced the completion of the sale to Agnico Eagle Mines Ltd. of the Santa Gertrudis project in Sonora. GoGold received total cash consideration of US$80 M and was granted a 2% NSR, of which 50% can be repurchased for US$7.5 M.

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

On the picture below, argillitized porphyritic intrusive rock with minor quartz veining from a gold-copper prospect of the Durango Altiplano. Photo by Jorge Cirett.

Parrandera

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

/ Gambusino Prospector / Leave a comment

During the 42nd week of the year (October 16th to October 22nd, 2017), at least 29 press releases were announced by companies working in Mexico, including eight quarterly reports. ON MEXICO ISSUES: No relevant news. ON EXPLORATION: Nine companies disclosed exploration efforts during the week: In Sonora, Alix Resources is doing metallurgical studies at its Agua Fria project; Teck is drilling the Alacrán project;  Oceanus discovered several veins at its El Tigre property; Riverside presented an exploration update on its Tajitos and Cecilia projects; SilverCrest released drill results from the Babicanora vein on its Las Chispas property; VVC Exploration boasted on the size of the mineralized system at Cumeral; Azure Minerals started drilling its Oposura project. In Chihuahua, Harvest Gold presented results on a soil program completed on its Cerro Cascaron project. In Sinaloa, VVC Exploration describes two mineralized structures at its La Tuna property. In Veracruz, Mexican Gold completed a geophysical survey that highlighted several targets at its Las Minas project. ON MINING: Avino Silver, Premier Gold, Sierra Metals, Gold Resource, Excellon, Fortuna Silver, First Majestic and McEwen Mining reported preliminary third quarter results. Corex Gold shipped the first gold concentrate from its Santana property in Sonora.  ON FINANCING: Excellon is to raise up to $11.5 M on a bought deal basis; Goldcorp exercised C$3.5 M on Alio Gold warrants; Alio gold exercised a buy-back clause to acquire 1% of NSR from Goldcorp; Silver One raised C$4.3 M. ON RESOURCES AND DEVELOPMENT: Leagold updated the resource estimate at the Bermejal Underground deposit on its Los Filos property  in Guerrero; Mexican Gold presented drill results from its Las Minas property in Veracruz; Torex Gold commenced an in-fill drill program at its Media Luna project in Guerrero; Monarca Mining is reviewing the geological information and drill holes from its Tejamen property in Durango; Riverside is re-logging core from the Jesus Maria zone of its Peñoles project in Durango; Southern Silver presented an update on the exploration and resource definition at its Cerro Las Minitas project in Durango; VVC Exploration is looking into bringing the Samalayuca copper property in Chihuahua to production; Bacanora Minerals received the environmental permit for plant construction on its Sonora lithium project. ON DEALS AND CORPORATE ISSUES: Alix Resources informed that Lithium Australia NL holds now 54% of the Elektra project in Sonora. Goldcorp announced the completion of the sale of its 21% stake on San Nicolas (Zacatecas) to Teck.

ON MEXICO ISSUES

  • No Relevant News.

ON EXPLORATION

  • Alix Resources Corp. completed recently a 2,500 m reverse circulation drill program at its Agua Fria project in Sonora. The program comprised 16 holes, returning 33 m @ 1,058 ppm Li; 48 m @ 1,031 ppm Li; 24 m @ 1,050 ppm Li. “A large sample is currently being composited for further metallurgical studies.   “In addition to significant Li values, the clay horizons at Agua Fria are anomalous in potassium which may be recoverable as potassium sulphate…”
  • Azure Minerals Ltd. informed that project operator Teck has commenced drilling on the Alacrán project in Sonora. During 2017 Teck has performed geological mapping, surface sampling and an induced polarization survey, identifying two high priority targets. The first target is the extension of the Loma Bonita Ag-Au deposit towards Cerro San Simon, with potential for epithermal mineralization. The second target is Cerro Colorado where strong chargeability and resistivity anomalies were identified under soil anomalies, pointing to a porphyry copper target. Three diamond rigs are to drill 5,000 m.
  • Mexican gold Corp. completed 50 km of ground magnetic survey and 15 line km of “Moving Loop Time Domain Electromagnetic” (TDEM) on the El Dorado/Juan Bran, Cinco Señores and Las Minillas mineralized zones at its Las Minas property in Veracruz. The TDEM method was validated over known parts of the mineralized system, with multiple new targets emerging on the three zones.
  • Oceanus Resources Corp. has discovered several new veins located approximately 150 m north and parallel to the Caleigh vein on its El Tigre project in Sonora. A drill rig is to arrive on the last week of October.
  • Riverside Resources Inc. presented an update on its Cecilia, Tajitos and La Silla projects. At Cecilia in Sonora, the environmental permit has been received to drill test the upper portion of a dome-related epithermal system, with sampling returning 21% of 394 chip-channel samples greater than 0.3 g/t Au. At Tajitos, also in Sonora, a number of new targets have been identified after reviewing in detail the past exploration and drilling campaign. At La Silla in Sinaloa, Riverside continues to consolidate a strong land package and outlining multiple veins, with soil surveying, mapping, sampling, structural analysis, remote sensing and prospecting.
  • Harvest Gold Corp. and Evrim Resources Corp. covered an area of 4.5 km by 1.6 km with a soil sampling program at its Cerro Cascaron project in Chihuahua. The soil survey included 877 Samples collected every 50 m on lines separated 200 m apart, oriented east-west. “Results have extended known veins, identified two new corridors and have highlighted a 1.4 kilometre-long, very strong gold-silver trend to the north of the ……. Serpiente Dorada vein”. The Carabina, San Pedro, and La Puerta areas show a “significant soil response in gold, silver and pathfinders along strike from known gold-silver mineralization and two additional areas between San Pedro and La Puerta, have significant pathfinder element responses”.
  • VVC Exploration Corp. describes its Cumeral project in Sonora as boasting a gold mineralization zone that runs at least for 3.6 km. At La Tuna in Sinaloa, two mineralized structures are favorable for an open-pit gold/copper resource. A signed letter of intent (LOI) with a mining company is at the due diligence stage.
  • SilverCrest Metals Inc. released further results from the Phase II drill campaign at its Las Chispas property in Sonora. The Babicanora vein has been drill tested for over 600 m of strike length, with a near-surface mineralized height of 150 to 175 m. High-grade intercepts occur also on the Granaditas and Amatista veins on the Babicanora area. Results include 2.9 m (true width, or TW) @ 5.6 g/t Au, 173 g/t Ag; 3.0 m @ 4.3 g/t Au, 130 g/t Ag; 2.0 m @ 3.0 g/t Au, 78 g/t Ag; 4.0 m @ nil Au, 397 g/t Ag; 4.1 m @ 3.5 g/t Au, 137 g/t Ag; 1.7 m @ 3.6 g/t Au, 190 g/t Ag. The average of the high-grade zone in 20 holes of the Babicanora vein is 3.6 m @ 2.73 g/t Au, 263 g/t Ag. Approximately 5,000 m of drilling is planned for the remaining part of 2017.
  • Azure Minerals Ltd. is drilling with two core rigs its Zn-Pb-Ag Oposura project in Sonora. The 120 hole program is to total 7,000 m, aiming to produce a mineral resource estimate by the end of March 2018.

ON MINING

  • Avino Silver and Gold Mines Ltd. reported third quarter 2017 production results from its Avino property in Durango. At the Avino mine 119.3 K tonnes were mined, with 117.9 K tonnes milled @ 66 g/t Ag, 0.7 g/t Au, 0.48% Cu; recoveries stood at 85% Ag, 70% Au, 88% Cu to produce 213.8 K Oz Ag, 1,847 Oz Au, 1.1 M Lb Cu (501.8 ton). At the San Gonzalo vein 18.4 K tonnes were mined, 20.3 K tonnes milled @ 281 g/t Ag, 1.55 g/t Au; with recoveries of 85% Ag, 82% Au, producing 155.2 K Oz Ag, 826 Oz Au.
  • Premier Gold Mines Ltd. announced preliminary third quarter results, including figures from its Mercedes mine in Sonora, where 18,564 Oz Au, 82,856 Oz Ag were produced.
  • Gold Resource Corp. disclosed preliminary production results for the third quarter 2017 on its El Aguila property in Oaxaca. The company produced 6,465 Oz Au, 392.1 K Oz Ag, 291 tonnes Cu, 1,449 tonnes Pb, 4,628 tonnes Zn.
  • Sierra Metals Inc. reported third quarter 2017 production results, including figures from its Cusi and Bolivar mines in Chihuahua. At Bolivar 223.3 K tons were processed @ 0.92% Cu, 14 g/t Ag, 0.14 g/t Au, achieving recoveries of 77.9% Cu, 74.5% Ag, 61.6% Au, to produce 3.52 M Lb Cu, 76 K Oz Ag, 629 Oz Au. At Cusi, 13.2 K tonnes were processed @ 154 g/t Ag, 0.26 g/t Au, 1.0% Pb, 1.1% Zn, with recoveries of 84.1% Ag, 55.7% Au, 83.5% Pb, 50.9% Zn, to produce 55 K Oz Ag, 61 Oz Au, 247 K Lb Pb, 160 K Lb Zn.
  • Excellon Resources Inc. announced third quarter 2017 results from its Platosa mine in Durango, where 18.1 K tonnes were mined, and 19.9 K tonnes milled @ 409 g/t Ag, 4.4% Pb, 6.1% Zn. Recoveries stood at 87.6% Ag, 81.8% Pb, 81.1% Zn, to produce 226.2 K Oz Ag, 1.6 M Lb Pb, 2.2 M Lb Zn. “All-in sustaining cost decreased during the quarter to approximately $11-$13 per payable silver ounce…”.
  • Fortuna Silver Mines, Inc. released third quarter 2017 production results, including figures from its San Jose mine in Oaxaca. At San Jose 263.7 K tonnes were milled at a rate of 3,038 tonnes per day (tpd), and an average grade of 229 g/t Ag, 1.71 g/t Au, with recovery rates of 90.5% Ag, 91.4% Au, to produce 1.77 M Oz Ag, 13,248 Oz Au. Mine production was sourced from Trinidad Central and Trinidad North.
  • First Majestic Silver Corp. released production results for the third quarter 2017 from its six mines in Mexico: Santa Elena in Sonora, La Encantada in Coahuila, La Parrilla in Durango; Del Toro in Zacatecas, San Martin in Jalisco, and La Guitarra in Estado de Mexico. Total production from the six mines amounts almost four million silver equivalent ounces during the period.First Majestic Q3 2017 production11
  • Corex Gold Corp. shipped the first gold–in-carbon concentrate from its Santana heap-leach project in Sonora. Corex has been conducting continuous bulk testing heap-leach activities on coarser crushed material than in the next anticipated program to be performed on finer crushed material.

    McEwen Mining Inc. reported production results for the first quarter 2017, including figures from its operations at El Gallo in Sinaloa, where 7,213 AuEq ounces were produced. Production below expectations is the result of a serious mechanical failure that halted crushing for a period of time. Better grades and increased crushing rates in the rest of the year are expected to partially compensate for the shortfall.

    ON FINANCING

    • Excellon Resources Inc. entered into an agreement with a syndicate of underwriters to sell shares on a bought deal basis for gross proceeds of $10 M. If an over-allotment option is exercised in full, gross proceeds for the offering can reach $11.5 M. (Platosa, Durango).
    • Alio gold Inc. announced that Goldcorp Inc. exercised its warrants that expire on October 19, 2017 for total proceeds of C$3.5 M. Alio Gold also exercised a buy-back right from Goldcorp of a 1% NSR on its Ana Paula project in Guerrero, for US$2.9 M. After the buy-back, the NSR held by Goldcorp on Ana Paula is now 2%. (San Francisco, Sonora).
    • Silver One Resources Inc. closed an oversubscribed non-brokered private placement for gross proceeds of C$4.3 M (Peñasco Quemado, Sonora).

    ON RESOURCES AND DEVELOPMENT

    • Leagold Mining Corp. updated the Bermejal Underground mineral resource estimate at its Los Filos property in Guerrero. The updated resource includes 9.9 M tonnes @ 6.15 g/t Au, 22 g/t Ag in the measured and indicated category, and 4.7 M tonnes @ 5.36 g/t Au, 16 g/t Ag in the inferred bracket, containing 1.97 M Oz Au and 820 K Oz Au in each category respectively. The estimate includes data from form 505 drill holes totaling 195,261 m, with mineralization having been tested along 1,600 m along the strike of the intrusive contact, with a vertical depth extent of over 800 m. Drill hole spacing is roughly 35 m for indicated resources and less than 25 m for measured resources.
    • Mexican Gold Corp. reported mineralized intercepts from its ongoing resource expansion drilling at El Dorado/Juan Bran zone at its Las Minas property in Veracruz. One hole intersected a 21 m interval of chalcopyrite, bornite and magnetite, and a second interval of 56 m of stronger mineralization. Both intervals have wide zones outside the outline of the mineral resource. One other hole intersected two intervals of 3 m and 8 m with chalcopyrite, bornite and magnetite.
    • Torex Gold Resources Inc. has initiated the in-fill drilling program at its Media Luna development project in Guerrero. The program’s purpose is to upgrade to the Indicated confidence level, 25% of the current resource (7.4 M Oz AuEq). The US$15 M program contains 175 holes averaging 600 m in depth, for a total of 105,000 m of drilling.
    • Monarca Mining Inc. is currently re-analyzing geological information and the re-logging of historical drill results from its Tejamen property in Durango. Monarca has identified three high grade intercepts at the Los Mantos and Cerro Prieto portions of Tejamen, including an 80 m zone containing 417 g/t Ag. The feeder veins strike to the SW for approximately one km. Drilling reached only about 150 m of depth, and the core was not assayed for other metals.
    • Riverside Resources Inc. informed that re-logging of 15 holes of the Jesus Maria zone at its Peñoles project in Durango resulted in the interpretation that at least one and possibly multiple high-grade vein structures remain untested for hundreds of meters along strike and down dip.
    • Southern Silver Exploration Corp. presented an update on activities at its Cerro Las Minitas project in Durango. During 2017 13,600 m were drilled in 18 holes, identifying and extending the new Skarn Front zone beneath the Blind and El Sol deposits. Exploration has been funded by Electrum Global Holdings L.P., earning a 60% stake on the project by spending US$5.0 M. A total of 107 drill holes for 49,600 m have been completed on the project, with exploration expenditures reaching US$10 M.
    • VVC Exploration Corp. is looking to bring the Samalayuca copper project to production in 2018. A 2013 NI-43-101 resource estimate shows a resource of 4.1 M tonnes of ore. VVC plans to use low cost, low tech processing to produce copper cement that is directly usable in many industrial processes.
    • Bacanora Minerals Ltd. announced the environmental impact statement (Manifestacion de Impacto Ambiental, or MIA) on its Sonora project has been approved by SEMARNAT (Environmental agency). The MIA approved is for the production of 35,000 tonnes per year of lithium carbonate through a conventional beneficiation process followed by a standard SO4 roasting process.

    ON DEALS AND CORPORATE ISSUES

    • Alix Resources Corp. announced that Perth-based lithium processing technologist, Lithium Australia NL (LIT) is controlling now 54% of the Elektra lithium project in Sonora. LIT has the right to earn up to 65% interest on the project under the current JV agreement.
    • Goldcorp Inc. announced the completion of the sale of its 21% minority interest in the San Nicolas Cu-Zn project in Zacatecas, to Teck Resources Ltd., for a cash consideration of US$50 M.

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

     

    On the picture below, sheeted quartz veins cutting an intrusive rock on a prospect of the Durango Altiplano. Photo by Jorge Cirett.Pillar2

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

/ Gambusino Prospector / Leave a comment

During the 41st week of the year (October 9th to October 15th, 2017), at least 24 press releases were announced by companies working in Mexico, including seven quarterly reports. ON MEXICO ISSUES: The Secretaría de Economía announced the liberation of over 195 K hectares of ground for staking. ON EXPLORATION: Eight companies disclosed exploration efforts during the week: In Sonora, Azure Minerals is about to start drilling its Oposura and Sara Alicia projects; Canuc Resources released underground and surface rock sampling results from its San Javier project; Colibri Resource released an exploration update of its Evelyn project; Silver Viper is drilling its Clemente project. In Sinaloa Chesapeake Gold commenced a 5,000 m drilling program focused in two prospects on its Yarely project. In Coahuila, Discovery Metals received the environmental permit to drill five of its projects; Silver Bull Resources released the results from the first two underground holes to test high grade structural feeders at its Sierra Mojada project. ON MINING: Endeavour Silver, Capstone Mining, Leagold Mining, Great Panther Silver, Alamos Gold, Gogold Resources and Alamos Gold reported preliminary third quarter results. Torex Gold signed a 25 year land agreement with the Puente Balsas Sur Ejido, needed for the exploration and operation of its Media Luna project in Guerrero. Telson Resources received the environmental permit for mine and related infrastructure on its Tahuehueto project in Durango.  ON FINANCING: Colibri Resources settled a $10 K debt by issuing shares to one of its directors. Sierra Metals entered into an open market agreement with a consortium to raise up to $55 M on the NYSE market. Fortuna Silver’s CEO bought approximately US$430 K shares of the company in the open market. Oroco Resources intends to complete a non-brokered private placement to raise up to $600 K. ON RESOURCES AND DEVELOPMENT: Fortuna Silver released exploration results from its San Jose property in Oaxaca, including high-grade drilling results. ON DEALS AND CORPORATE ISSUES: No Relevant news.

ON MEXICO ISSUES

  • The Secretaría de Economía (Bureau of Economy) released the long due and eagerly awaited second release of previously held land of 2017, ground that is now going to be open for mining concession applications. Over 44 K hectares of reduced land (from eleven concessions), 131 K hectares of abandoned concessions (95) and almost 20 K hectares of cancelled concessions (96) are to be available in one month for staking by individuals and corporations.

ON EXPLORATION

  • Azure Minerals Ltd. is about to start drilling at its Oposura and Sara Alicia projects in Sonora. The environmental permit has been granted for both projects. At Oposura a total of 7,000 m of drilling is planned in 120 holes on a 1,400 by 400 m area. At Sara Alicia geological mapping, rock chip channel sampling, gridded soil sampling, and initial target identification has been completed. A zone of high grade gold and cobalt with samples of up to 39 g/t Au and up to 6% Co has been identified and is to be drill tested with 5-6 holes for a total of 450-500 m of diamond core.
  • Canuc Resources Corp. reported high grade silver and gold from recent sampling of underground workings, and from the surface of the Carranza breccia zone at its San Javier project in Sonora. “Road construction, trenching and drill platform preparation have been completed and surface mapping and sampling are ongoing.” The focus is on the breccia zones found at the intersections of the two fault trends. Results include 0.5 m @ 10.3 g/t Au, 250 g/t Ag; 0.5 m @ 8.0 g/t Au, 246 g/t Ag; 1.23 m @ 6.0 g/t Au, 174 g/t Ag; 1.2 m @ 10.5 g/t Au, 220 g/t Ag; 1.6 m @ 9.5 g/t Au, 150 g/t Ag; 1.6 m @ 11.3 g/t Au, 100 g/t Ag; 0.9 m @ 5.1 g/t Au, 17,200 g/t Ag; 1.3 m @ 1.9 g/t Au, 6,230 g/t Ag; 1.4 m @ 2.0 g/t Au, 2,395 g/t Ag; 0.7 m @ 1.6 g/t Au, 150 g/t Ag; 2.5 m @ 1.1 g/t Au, 600 g/t Ag; 3.0 m @ 1.2 g/t Au, 470 g/t Ag.
  • Chesapeake Gold Corp. commenced a 5,000 m diamond drill program at its 68,000 has Yareli project in Sinaloa. The phase I program is to focus on the Central and Loretos prospects. “At Central prospect Initial drill holes will test the four subparallel north – northwest trending stockwork structures up to one kilometre in length and associated extensive breccia bodies..” At Loretos three widely spaced holes are planned to test the west side of a “V” shaped IP anomaly which is over 3 km long and one km wide.
  • Colibri Resource Corp. released a report on its 506 hectare Evelyn project in Sonora. Geological and structural mapping, as well as rock chip sampling were conducted. The property is underlain by Jurassic rhyolites, andesites and sandstones. Prospects highlighted include the Mine Working shear zone, the Cerro Rojo Fault and the Quartz Vein Swarm. Of 74 samples collected, 33 returned values greater than 0.1 g/t Au.
  • Discovery Metals Corp. received drill permits for five of its projects from the Mexican environmental regulator, SEMARNAT. These permits cover the La Kika, Renata, Santa Rosa, La Minerva, and Jemi-Rare projects in northern Coahuila.
  • Silver Bull Resources Inc. provided the results from two drill holes of its underground drill program targeting high-grade structures at its Sierra Mojada project in Coahuila. The first hole intersected 7 m @ 121 g/t Ag, 0.52% Cu, including 2 m @ 376 g/t Ag, 3.0% Cu. The second hole intersected 25.5 m @ 294 g/t Ag, 0.96% Cu, including 11.5 m @ 486 g/t Ag, 1.13% Cu and 4 m @ 966 g/t Ag, 2.0% Cu, with the hole entering and ending in an unmapped working. The results confirm the East-West continuity of the first of three structures to be drilled.
  • Silver Viper Minerals Corp. is performing a 2,000 m drilling program at its Clemente project in Sonora. The diamond drilling is designed to target the down dip projection of the steep dipping quartz shear vein and adjacent quartz veining observed in accessible historical mine workings.

ON MINING

  • Endeavour Silver Corp. reported production results for the third quarter 2017. At Guanaceví in Durango, 74.6 K tonnes were produced at a rate of 811 tonnes per day (tpd) @ 250 g/t Ag, 0.57 g/t Au and recoveries of 87.2% Ag, 89.5% Au, to produce. 522.9 K Oz Ag, 1,224 Oz Au. At Bolañitos, in Guanajuato, 114.5 K tonnes were produced at a rate of 1,245 tpd @ 85 g/t Ag, 2.15 g/t Au and recoveries of 81.1% Ag, 82.4% Au, to produce 253.8 K Oz Ag, 6,523 Oz Au. At El Cubo in Guanajuato, 133.6 K tonnes were produced at a rate of 1,452 tpd @ 135 g/t Ag, 1.35 g/t Au and recoveries of 83.7% Ag, 83.3% Au, to produce 485.4 K Oz Ag, 5,901 Oz Au. In July the production decision was made on El Compas project in Zacatecas. In August were received the permits for the mine and plant at Terroneras, Jalisco. Pending are the permits for the waste dumps and tailings areas.
  • Torex Gold Resources Inc. signed a long term, common land lease agreement with the Puente Sur Balsas Ejido for the use of the land required for the exploration, construction and mining of minerals at its Media Luna project in Guerrero. The 25 year agreement can be revoked at the company’s discretion, with one year’s notice.
  • Telson Resources Inc. received the environmental permit (MIA) authorizing the construction of a mineral processing facility, related mining facilities, plus infrastructure and necessary underground development at its Tahuehueto project in Durango.
  • Capstone Mining Corp. announced production results for the quarter terminating at the end of September 2017. At Cozamin higher throughput than planned saw 223.8 K tonnes mined from underground and 223.4 K tonnes processed at a rate of 2,429 tpd, averaging 1.98% Cu, 0.8% Zn, 0.08% Pb, 42 g/t Ag; recoveries stood at 96.1% Cu, 65.7% Zn, 7.0% Pb, 79.7% Ag, to produce 15,688 tonnes of Cu concentrate, 2,463 tonnes of Zn concentrate and 20 tonnes of lead concentrate.
  • Leagold Mining Corp. disclosed Q3 2017 gold production at the Los Filos mine in Guerrero. During the period the Los Filos mine produced 47,766 Oz Au.
  • Great Panther Silver Ltd. released production results for the third quarter 2017. At the Guanajuato Mine Complex in Guanajuato, 76.1 K tonnes were milled @ 155 g/t Ag, 2.54 g/t Au; with recoveries of 89.8% Ag, 88.1% Au, to produce 341.6 K Oz Ag, 5,471 Oz Au. At Topia in Durango, 18 K tonnes were milled @ 362 g/t Ag, 0.97 g/t Au; with recoveries of 91.1% Ag, 67.1% Au, to produce 191.2 K Oz Ag, 377 Oz Au.
  • Alamos Gold Inc. reported production for the third quarter 2017, including figures from its Mexican operations. At Mulatos (including La Yaqui) 36,300 Oz Au were produced, and 14,900 Oz Au at El Chanate, both in Sonora.
  • GoGold Resources Inc. announced production for the quarter terminated at the end of September 2017. At its Parral tailings operation 353.4 K Oz Ag were produced. An improvement on the recoveries by changing agglomeration and heap parameters can be seen in the graphic below.
  • Hecla Mining Co. reported preliminary production results for the third quarter 2017, including figures from its Mexican operations. At San Sebastian in Durango, the mill operated at 397 tpd to produce 880.9 K Oz Ag, 8,199 Oz Au.

ON FINANCING

  • Colibri Resources Corp. has issued shares in the amount of $10,000 to settle an outstanding indebtedness due to Ed Stringer, a director of the company (Evelyn, Sonora).
  • Sierra Metals Inc. entered into an open market Sale Agreement with Jefferies LLC, C. Wainwright & Co, LLC Scotia Capital (USA) Inc. and Noble Capital Markets Inc., on which the company may during the term of the agreement sell common shares in the NYSE up to the amount US$55 M in gross proceeds. No common shares will be offered or sold in Canada (Cusi and Bolivar mines, both in Chihuahua).
  • Fortuna Silver Mines Inc. announced that Jorge A. Ganoza, CEO of the company increased his equity position in Fortuna by acquiring 131,800 common shares on the open market, valued at close to US$430 K. (San Jose, Oaxaca).
  • Oroco Resource Corp. intends to complete a non-brokered private placement to raise up to $600 K of gross proceeds (Xochilapa, Guerrero).

ON RESOURCES AND DEVELOPMENT

  • Fortuna Silver Mines Inc. updated exploration efforts at its San José mine in Oaxaca, where four rigs are testing the Trinidad-Bonanza-Stockwork complex, the Trinidad North Extension and the sub-parallel Victoria vein (formerly Ocotlan vein). Relevant estimated true width intercepts (TW) comprise 4.1 m @ 247 g/t Ag, 1.8 g/t Au; 21.0  m @ 153 g/t Ag, 0.9 g/t Au; 3.6 m @ 281 g/t Ag, 1.2 g/t Au; 4.5 m @ 356 g/t Ag, 3.5 g/t Au; 3.7 m @ 1,106 g/t Ag, 6.3 g/t Au in the Victoria vein, and 6.7 m @ 218 g/t Ag, 1.3 g/t Au; 2.2 m @ 195 g/t Ag, 1.1 g/t Au; 2.2 m @ 195 g/t Ag, 1.1 g/t Au at the Trinidad/Bonanza veins and Stockwork.

ON DEALS AND CORPORATE ISSUES

  • No Relevant News.

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

On the picture below, secondary copper minerals around a quartz veinlet with oxidized sulfides, which is cutting an intrusive rock on a prospect of the Durango Altiplano. Photo by Jorge Cirett.

BlackCopper

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

/ Gambusino Prospector / Leave a comment

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

ON MEXICO ISSUES

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

ON EXPLORATION

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

ON MINING

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

ON FINANCING

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

ON RESOURCES AND DEVELOPMENT

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

ON DEALS AND CORPORATE ISSUES

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

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

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

DSCN5549

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

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

ON MEXICO ISSUES

  • No Relevant News.

ON EXPLORATION

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

ON MINING

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

ON FINANCING

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

ON RESOURCES AND DEVELOPMENT

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

ON DEALS AND CORPORATE ISSUES

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

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

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

DSCN5515 - copia

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

/ Gambusino Prospector / Leave a comment

During the 33rd week of the year (August 14th to August 20th, 2017), at least 24 press releases were announced by companies working in Mexico, including five quarterly reports. ON MEXICO ISSUES, no relevant news. ON EXPLORATION, in Sonora, Azure reported the acquisition of the Oposura property (formerly Arenillas). In Sinaloa Marlin Gold released results from a twin hole south of its La Trinidad mine, and Santana Minerals reported saw channel samples from its Cuitaboca project. In Veracruz Almadex reported good gold and copper values over a long drill intercept at El Cobre. ON MINING, GoGold, Sierra Metals, Fortuna Silver, Aura Minerals and Starcore presented financial and/or operational results for the last quarter. Telson resources reported the second concentrates shipment from Tahehueto in Durango. ON FINANCING, Primero mining is delisted from the NYSE. Southern Silver is extending the closing of the second tranche of financing. Maverix Metals closed a senior secured loan facility with CFE Ltd.  ON RESOURCES AND DEVELOPMENT, Avino Silver released infill and step-out drilling results from Avino, in Durango. Kootenay  announced the discovery o a new mineralized zone at its La Cigarra property in Chihuahua. Minera Alamos commenced an exploration program focused on resource expansion at La Fortuna in Durango. Consolidated Zinc disclosed more high-grade results from infill and step-out drilling at its Plomosas property in Chihuahua. ON DEALS AND CORPORATE ISSUES, Santacruz Silver completed the sale of the Gavilanes project in Durango to Marlin Gold. Discovery Metals announced the acquisition of multiple properties in Coahuila, including the Puerto Rico listing property.

ON MEXICO ISSUES

  • No relevant news.

ON EXPLORATION

  • Marlin Gold Mining Ltd. announced that a diamond drill hole at the San Cristobal target, 12 km from its La Trinidad mine in Sinaloa intercepted 13.90 m true width (TW) @ 1.19 g/t Au, 21 g/t Ag. The objective of the drill hole was to twin a reverse circulation hole that intersected 0.74 g/t Au over 30 m in 2010. “Reconnaissance geological mapping and sampling (over 1,600 rock chip samples) indicate gold and silver is associated with quartz veins, quartz stockwork, quartz breccia and silicified zones within a four kilometer-wide, northwest-trending structural corridor”.
  • Almadex Minerals Ltd. disclosed results from the best hole to date at the North zone of its El Cobre project in Veracruz. The drill hole intersected multiple zones of intense stockwork veining and potassic alteration with gold and copper mineralization. The 534.9 m intercept @ 0.90 g/t Au, 0.3% Cu includes 144.8 m @ 1.77 g/t Au, 0.45% Cu (which includes 98.0 m @ 1.96 g/t Au, 0.48% Cu.
  • Endeavour Silver Corp. Released results from recent drilling at La Luz vein in its Terronera property in Jalisco. Relevant true width intercepts of 1.7 m @ 16.2 g/t Au, 45 g/t Ag; 1.3 m @ 20.9 g/t Ag, 25 g/t Ag; 1.4 m @ 0.2 g/t Au, 419 g/t Ag; 1.0 m @ 2.3 g/t Au, 73 g/t Ag; 1.1 m @ 2.7 g/t Au, 91 g/t Ag; 1.1 m @ 20.3 g/t Au, 384 g/t Ag, 1.2 m @ 16.5 g/t Au, 38 g/t Ag; 1.2 m @ 7.6 g/t Au, 12 g/t Ag. Anomalous values of up to 0.15% of Cu, Pb and Zinc are part of the results.
  • Azure Minerals Ltd. announced the acquisition of 100% of the Zn-Pb-Ag Oposura project (previously known as Arenillas) in Sonora, without elaborating on the terms. About 100 drill holes were completed previously on the property, and a non JORC compliant resource estimated. Sampling of the mineralized zone returned multiple assays over 30% Pb+Zn, with significant silver values. “The overall mineralised zone is up to nine metres thick, averages about three metres in true width, and demonstrates good continuity of width and grade”.
  • Santana Minerals Ltd. reported significant diamond saw channel sampling results from the La Plata prospect within its Cuitaboca project in Sinaloa. The results over accessible outcrops include 2.45 m @ 362 g/t Ag and 4.60 m @ 295 g/t Ag. These results represent the continuity 300 m east of previous sampling, extending the potential strike of the interpreted La Plata vein system to approximately 2 km.
  • Galore Resources Inc. disclosed assay results from seven rock chip samples collected on El Alamo target on its Dos Santos project in Zacatecas. The samples collected in breccias and jasperoids assayed 0.8 to 18.6 g/t Au. Drilling plans envisage ten 150 to 300 m deep holes.

ON MINING

  • Telson Resources Inc. announced the second shipment of 128 tonnes of lead concentrate and 227 tonnes of zinc concentrate from the Tahuehueto mine. The metal recoveries were 83.5% Au, 89.3% Ag, 86.1% Pb, 85.4% Zn.
  • GoGold Resources Inc. released its financial results for the quarter ending on June 2017 (their Q3). During the period 2,337 Oz Au, 151,422 Oz Ag were produced at the Parral tailings project at cash cost of $9.61 per AgEq Oz. The Santa Gertrudis high grade gold project produced 320 Oz Au. The overall cash cost was $16.2 per AgEq Oz and the all-in sustaining cost (AISC) $25.91. At the end of the quarter the company had a working capital deficit of $35.1 M. Management is exploring alternatives to de-lever its balance sheet.
  • Sierra Metals Inc. reported consolidated results for the second quarter of 2017. At Bolivar in Chihuahua the cash cost per CuEq Lb was $1.35 and AISC $2.49 per CuEq Lb for the period, while at Cusi, also in Chihuahua, the cash cost per AgEq Oz was $20.60 and AISC $49.13. At Bolivar 775 m of mine development were completed to prepare stopes for mine production, and 11,236 m were drilled at El Gallo, Bolivar Northwest and Bolivar West zones. At Cusi mine development totaled 1,551 m and 2,021 m of infill drilling were completed and further 15,566 m were drilled on the Santa Rosa de Lima orebody. Cash and cash equivalents of $31.1 M at the end of the period.
  • Fortuna Silver Mines Inc. reported its consolidated financial results for Q2 2017. At San Jose in Oaxaca 268.4 K tonnes were milled (3,016 tonnes per day, or tpd) @ 238 g/t Ag, 1.82 g/t Au, and a recovery rate of 92% Ag, 92% Au to produce 1.88 M Oz Ag, 14,410 Oz Au. Cash cost net of by-product credits was $1.03 per Ag Oz and AISC $7.67 per Ag Oz. Cash and short term investments of $16.7 M at the end of the period.
  • Aura Minerals Inc, released Q2 2017 financial and operating results. Aura owns the idle Aranzazu mine in Zacatecas, which is under care and maintenance. The company is evaluating options to maximize value of this asset.
  • Starcore International Mines Ltd. announced production results for the first quarter of fiscal 2018, ended July 31, 2017. During the quarter at the San Martin mine in Queretaro 69.7 K tonnes were milled @ 1.97 g/t Au, 12.6 g/t Ag with recoveries of 85.0% Au, 51.2% Ag to produce 3,888 Oz AuEq. Furthermore, the Altiplano Facility received 37. 2 tonnes of concentrate and 24.2 tonnes of slag containing approximately 150 Oz Au and 25.5 K Oz Ag.

ON FINANCING

  • Primero Mining Corp. has received formal notification from the New York Stock Exchange of its intention to initiate delisting procedures, as the company is no longer suitable for listing based on “abnormally low” price levels. The company continues trading on the Toronto Stock Exchange.
  • Southern Silver Exploration Corp. is extending the final closing date of its previously announced brokered private placement until September 15th, 2017. The first tranche closed in June, raising $2.55 M of the intended goal of $5.0 M on two tranches.
  • Maverix Metals Inc. closed the previously announced senior secured loan facility with CEF Ltd. for US$20 M. The company has closed the previously announced private placement to CEF and Pan Ameican Silver Corp. for total proceeds of $9.88 M. Maverix now has over C$44 M available to acquire additional precious metals royalties (Royalties from La Colorada in Zacatecas, San Jose in Oaxaca).

ON RESOURCES AND DEVELOPMENT

  • Avino Silver & Gold Mines Ltd. release further results from the extended 22 hole drill program comprising 3,374 m at the Avino mine in Durango. The program focused on tonnage and grade of the area between the San Luis workings and the Elena Tolosa current production area. Relevant results include 9.30 m @ 0.39 g/t Au, 29 g/t Ag, 0.25% Cu; 22.65 m @ 1.48 g/t Au, 41 g/t Ag, 0.20% Cu; 34.5 m @ 0.35 g/t Au, 88 g/t Ag, 0.82% Cu; 25.40 m @ 0.68 g/t Au, 47 g/t Ag, 0.08% Cu; 43.05 m @ 0.50 g/t Au, 33 g/t Ag, 0.08% Cu; 8.85 m @ 0.09 g/t Au, 61 g/t Ag, 0.77% Cu; 8.45 m @ 1.36 g/t Au, 7 g/t Ag, 0.07% Cu; 23.40 m @ 1.09 g/t Au, 167 g/t Ag, 0.38% Cu; 40.45 m @ 0.56 g/t Au, 42 g/t Ag, 0.19% Cu; 42.05 m @ 0.49 g/t Au, 103 g/t Ag, 0.18% Cu. Three areas are scheduled to have exploration drilling: San Gonzalo (1,200 m), The Avino-San Juventino intersection (2,000 m) and the Chirumbo mining area (2,000 m ).
  • Kootenay Silver Inc. announced the discovery of a new mineralized zone within La Venada target at its La Cigarra property in Chihuahua. This area is blind to the surface, 1 km south of the La Cigarra resource. “More than 250 meters in core length of quartz-calcite and quartz vein breccia and veining within altered sediments was intercepted…”. The new zone intercept comprises 29.5 m @ 91 g/t Ag, including 19.2 m @ 123 g/t Ag. Results from the Venada zone include 12 m @ 73 g/t Ag; 10 m @ 47 g/t Ag; 19.2 m @ 123 g/t Ag (including 2.0 m @ 435 g/t Ag; and 10.7 m @ 114 g/t Ag); 9.5 m @ 107 g/t Ag. All intervals contain values of up to 0.6% Pb and 3.3% Zn.
  • Minera Alamos Inc. has initiated an exploration program aimed to expand resources at La Fortuna property in Durango. Data compilation, surface mapping, drill targeting and  a new geophysical survey are to be completed on projections of the La Fortuna resource zone, the PN area, the Ramada zone, Cerro Pelon zone and the far southern area.
  • Consolidated Zinc Ltd. released results from its resource expansion drilling program at its Plomosas project in Chihuahua. True width intercepts include: 0.40 m @ 3.8% Zn, 1.0% Pb; 1.75 m @ 9.4% Zn, 1.7% Pb; 0.85 m @ 4.4% Zn, 0.3% Pb; 0.90 m @ 10.9% Zn, 6.7% Pb; 0.95 m @ 3.7% Zn, nil Pb. Length of drill hole intersections include 1.50 m @ 8.0% Zn, nil Pb; 1.35 m @ 34.7% Zn, nil Pb; 0.5 m @ 5.0% Zn, 0.2% Pb; 0.75 m @ 4.2% Zn, 0.3% Pb; 0.5 m @ 2.3% Zn, 1.1% Pb; 0.5 m @ 9.4% Zn, 0.3% Pb; 1.0 m @ 7.2% Zn, 0.4% Pb.

ON DEALS AND CORPORATE ISSUES

  • Santacruz Silver Mining Ltd. informed the sale of 100% interest in the Gavilanes property in Durango to Marlin Gold Mining Ltd. has been completed.
  • Discovery Metals Corp. is now classified as a Tier 2 Mining Issuer on the TSX Venture Exchange, with the completion of the transaction on the Puerto Rico property agreement. Under the agreement Discovery has done a $300 K payment, the issuing 500 K shares to the vendors, and pledged to make and additional US$300 K payment and issuing a further 500 K shares upon government drilling approval, and the issuance of four tranches of 500 K shares on each anniversary of the closing after the second anniversary. A final issuance of shares representing 30% of the company’s issued and outstanding capital is also included, with some clauses that can take the vendors stake to 35%. Discovery also has to spend not less than US$2 M within one year of the drilling approval and not less than $12.5 M within five years to exercise the option.
  • Discovery Metals Inc. For acquiring the Renata project in Ocampo, Coahuila a US $100 K payment is to be made to the vendors within three months of the closing. Not less than US$2 M have to be spent within three years of the closing, and in the case of sale to a third party the vendors are to receive the first US$3 M of the proceeds. On La Kika property in Coahuila, Discovery has paid US$45 K on closing, and has to spend not less than US$2 M within five years, the issuance to the vendors of 1 M shares and a royalty of 30% on the operating profits of the first 450 K tonnes shipped, or a 2% NSR otherwise. Additional option agreements involve La Minerva, Santa Rosa and Jemi/Rare Earth concessions..

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

On the picture below, low sulfidation quartz vein stockwork in felsic volcanic rocks, in the Sierra Madre of Chihuahua. Photo by Jorge Cirett.

DSCN5183 - copia

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

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During the 32nd week of the year (August 7th to August 13th, 2017), at least 22 press releases were announced by companies working in Mexico, including eight second quarter reports. ON MEXICO ISSUES, two companies reported the receipt of VAT recovery from the government for $1.3 M and $2.4 M respectively. ON EXPLORATION, in Sonora, Oceanus reported results from underground sampling at El Tigre, while Millrock presented an update on properties under its alliance with Centerra. In Zacatecas, Alset presented drilling results from its lithium property, La Salada. In Guanajuato, Golden Minerals informed on drilling by Electrum of its Celaya property.  ON MINING, Golden Minerals, Torex Gold, Premier Gold, Alio Gold, Pan American Silver, Americas Silver, Primero Mining and Argonaut Gold presented production and/or financial results for the second quarter of 2017. US Antimony reported cost reductions on its operations and Telson resources reported the first concentrates shipment from Tahehueto in Durango. ON FINANCING, no relevant news for the first time in the year.  ON RESOURCES AND DEVELOPMENT, Golden Minerals informed on the acquisition of three more claims and the incoming drilling campaign on its Santa Maria project in Chihuahua. ON DEALS AND CORPORATE ISSUES, Santacruz Silver completed the sale of the Gavilanes project in Durango to Marlin Gold. Colibri completed the acquisition of Canadian Gold, along with its properties in Sonora. McEwen Mining reported on the next semi-annual return of capital instalment.

ON MEXICO ISSUES

  • On VAT recovery. The first company to announce a sizeable VAT recovery in years was Alio Gold, which received $1.3 M in cash before the end of the second quarter. Primero Mining received $2.4 M after the end of the second quarter.

ON EXPLORATION

  • Golden Minerals Co. announced that Electrum Global Holdings L.P. received results of drilling on Golden’s Celaya property in Guanajuato. Results from 5,600 m drilled in seven holes (800 m per hole?) show intercepts of epithermal quartz vein mineralization with Au, Ag, Zn grades that warrant further testing.
  • Alset Minerals Corp. reported partial results from phase one drilling at La Salada salar in Zacatecas, the first of 13 salars to be tested. At La Salada, one deep hole (51.35 m) and 40 auger holes (4.5 – 26.0 m in depth, average 14 m) were completed, both near surface brine samples and extensive lake sediment samples were recovered in the 1,800 m by 900 m salar. Results from five of the holes (the rest are pending) average 14.4 m @ 3.6% K, 975 ppm Li (up to,1860 pm) and 535 ppm B. Water samples average 1.3% K, 1.6% SO4, 258 ppm B, 9 ppm Li, 57 ppm Ca, 36 ppm Mg.
  • Oceanus Resources Corp. presented assay results from sampling at old underground exploration tunnels from the unmined Protectora, Aguilas, Fundadora and Caleigh veins on its El Tigre project in Sonora. The rock chip samples are said to be at least 0.5 m in width (no average width disclosed), and collected every 3-5 m along strike in 13 exploration tunnels. Average results include 3 samples on the Caleigh vein @ 19.9 g/t Au, 2,247 g/t Ag; On the Protectora vein: 20 samples @ 0.2 g/t Au, 437 g/t Ag; 18 samples @ 1.3 g/t Au, 290 g/t Ag; 4 samples @ 2.8 g/t Au, 337 g/t Ag; 16 samples @ 2.2 g/t Au, 473 g/t Ag; 5 samples @ 2.8 g/t Au, 680 g/t Ag; 19 samples @ 0.6 g/t Au, 480 g/t Ag. On the Fundadora vein: 5 samples @ 6.1 g/t Au, 307 g/t Ag; 12 samples @ 1.2 g/t Au, 254 g/t Ag.
  • Millrock Resources Inc. presented an update in exploration, including information on its three properties in Sonora. The La Navidad project was optioned on June, and immediately entered into a JV with Centerra Gold Inc. Presently underway are soil sampling, geological mapping, induced polarization and magnetic surveys. Also in June El Picacho project was optioned and made a “designated project” on the alliance between Centerra and Millrock. Soil sampling, geological mapping, induced polarization and mag surveys are currently being performed. Los Chinos and Los Cuarenta projects options were terminated by Centerra.

ON MINING

  • United States Antimony Corp. reported major cost reductions at its Mexican antimony smelter, as a result of metallurgical changes while increasing production rates. Production at Wadley, San Luis Potosi, is growing with more miners. USAC intends to use its Los Juarez explosives license at Soyatal, Queretaro, which will save money and time. Guadalupe is undergoing road work to re-establish the production of high-grade concentrates. The application for the cyanide permit for the Los Juarez project was resubmitted to SEMARNAT (EPA equivalent) at the end of July, after one item change requested by the agency.
  • Telson Resources Inc. announced that the first shipment of lead and zinc concentrates processed at the Atocha mill has been delivered to Mercuria Commodities Trading, S.A. de C.V.. As of August 1, 2017, the Company has processed approximately 1600 tonnes of ore through the Atocha toll mill producing approximately 66.1 dry tonnes of lead concentrate and 94.5 dry tonnes of zinc concentrate which have been delivered to Mercuria.
  • Golden Minerals Co. presented financial results for Q2 2017. Approximately $1.7 M revenue was received from the oxide plant lease to Hecla, and costs of $0.5 M to the services provided under the lease, for a net operating margin of $1.1 M. The company spent $0.5 M in exploration related primarily to work at the Santa Maria (Chihuahua), Rodeo (Durango) and other properties, as well as holding costs. Cash and cash equivalents balance of $2.7 M at the end of the period.
  • Torex Gold Resources Inc. reported financial and operational results. At El Limón Guajes mine in Guerrero 74,487 Oz Au were produced, as ramp-up continues, with design throughput achieved in June. Plant throughput was 1.2 M tonnes, or 13,063 tonnes per day (tpd), while mine production was 8.4 M tonnes, or 92,044 tpd. The gold recovery rate was 86% on a 2.37 g/t Au average grade, at cash cost $709 per Oz Au and AISC $991. Cash balance of $77.2 M including restricted cash of $15.7 M at the end of the period.
  • Premier Gold Mines Ltd. announced its operational and financial results for the second quarter of 2017. At Mercedes in Sonora 177.9 K tones were milled (1,954 tpd) @ 4.03 g/t Au, 36 g/t Ag; with recoveries at 94.9% Au, 43% Ag, to produce 21,893 Oz Au, 89.5 K Oz Ag. By-product cash cost per Oz Au was CAD$550 and by-product AISC per Oz Au of CAD$688. Quarter end cash balance of $156.8 M (US$120.9 M).
  • Alio Gold Inc. reported second quarter 2017 results. Production at the San Francisco gold mine was 22,011 ounces during the period, at AISC $954 per Oz Au. The San Francisco mine revitalization plan was initiated and the definitive feasibility study (DFS) after the positive pre-feasibility study (PFS) was released and a CAD$50.4 M bought deal financing was completed. The pre-stripping campaign envisions moving 22 M tonnes of waste from the Main and La Chicharra pits over the next 20 months. Cash and cash equivalents at the end of the period were $35.9 M.
  • Pan American Silver Corp. announced Q2 2017 results, including figures from its operations in Mexico. At Dolores in Chihuahua the construction of the agglomeration plant was completed and development for underground mining advanced, with initial stope ore mining expected to initiate before the end of 2017. At La Colorada mine in Zacatecas production achieved 1,800 tpd rates during the last month of the quarter. At La Colorada 1.73 M Oz Ag, 0.94 K Oz Au were produced at cash cost $3.38 per Ag Oz. At Dolores 1.04 M Oz Ag, 22.44 K Oz Au were produced at cash cost $0.12 and at Alamo Dorado in Sonora 0.26 M Oz Ag, 0.69 K Oz Au were produced at cash cost $11.18. Cash and short-term investments of $198.2 M at the end of the period.
  • Americas Silver Corp. disclosed consolidated financial and operational results for the second quarter of 2017. The figures of its operations in Mexico were informed in a previous release. San Rafael in Sinaloa remains on budget and on time to start production by the end of Q3, 2017. Cash balance at the end of the period was $12.8 M.
  • Primero Mining Corp. reported operating and financial results for the second quarter, 2017, including figures form its Mexican operations. At San Dimas 11,903 Oz Au, 0.97 Oz Ag were produced at cash cost $1,144 per AuEq Oz, and AISC $1,650 per AuEq Oz, with operations being impacted by bad relations with unionized employees. “…the Company believes that labour disruptions may continue to adversely affect the Company’s ability to profitably operate the San Dimas…” and “Primero highlights the significant liquidity risk imposed by the pending RFC maturity date of November 23, 2017, and notes that it may not be able to fully repay its debt obligations…”. Cash stood at $12.1 M and $10.0 M available under its existing revolving credit facility (RFC) at the end of the period, with a $33.5 in VAT and $22.8 M income taxes receivable outstanding.
  • Argonaut Gold Inc. announced its financial and operating results for the second quarter of 2017. The consolidated production was 29,730 AuEq Oz at cash cost $785 and AISC $906 per AuEq ounce. At El Castillo in Durango 2.0 M tonnes of ore @ 0.39 g/t Au and 2.65 M tonnes of waste were moved (51 K tpd) to produce 16,927 Oz Au at cash cost $893 per ounce. At La Colorada in Sonora 1.22 M tonnes of ore @ 0.64 g/t Au and 4.77 M tonnes of waste were moved (66 K tpd) to produce 12,098 Oz Au and 38.2 K Oz Ag at cash cost $590 per AuEq ounce. At San Agustin (10 km from El Castillo) mining commenced during the quarter, leach pad and pond construction was completed and the crushers installed, with ore beginning to be staked on the pad in late June. Construction was 75% complete by the end of July. Cash and cash equivalents stood at $53.8 M at the end of the quarter.

ON FINANCING

  • No relevant news.

ON RESOURCES AND DEVELOPMENT

  • Golden Minerals Co. entered into an agreement to acquire three additional claims at the Santa Maria project in Chihuahua for $0.7 M over four years, with an initial payment of $50 K and $30 K in six months. The targets in these claims are to be tested in an upcoming 2,000 m drill program in the third quarter of 2017, while the environmental study to obtain the permit to perform the 200 tpd underground mining envisaged on the preliminary economic assessment (PEA) has been completed.

ON DEALS AND CORPORATE ISSUES

  • Santacruz Silver Mining Ltd. entered into a definitive agreement to sell 100% interest in the Gavilanes property in Durango to Marlin Gold Mining Ltd. Santacruz is to settle the outstanding balance on some of the claims by making a $500 k payment and issuing 1.25 M Santacruz shares to the property vendor. Gavilanes is a low sulphidation epithermal deposit in the San Dimas mining district with NI-43-101 compliant 6.1 M AgEq indicated ounces (953 K tonnes @ 200 g/t AgEq), and 28.2 M AgEq inferred ounces (5.4 M tonnes @ 163 g/t AgEq).
  • Santacruz Silver Mining Ltd. settled the outstanding balance owing on certain of the claims included in the Gavilanes project (in Sinaloa) by making a cash payment of US$500 K and 1.25 M Santacruz shares.
  • Colibri Resource Corp. completed the acquisition of Canadian Gold Resources Ltd. Colibri acquired all outstanding shares of Canadian Gold for $4 M, paid by way of issuance of 24.2 M shares to the vendor. Colibri now owns 100% interest in Minera Bestep S.A. de C.V., a private Mexican company that holds 100% (no NSR’s) of the Pilar and the Sun properties near Suaqui, in Sonora.
  • McEwen Mining Inc. reported a revised record date for the next semi-annual return of capital instalment of a ½ cent per share which will be distributed to shareholders of record on August 14, 2017. The distribution will be paid on August 17, 2017.

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

On the picture below, vuggy silica fragment within a felsic tuff in Chihuahua. Photo by Jorge Cirett.

Vuggy quartz at Moreno