Drilling Results

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

/ Gambusino Prospector / 2 Comments

During the 31st week of the year (July 31st to August 6th, 2017), at least 27 press releases were announced by companies working in Mexico, including nine second quarter reports. ON MEXICO ISSUES, gold and silver production decreased during the first five months in the Bajío region. ON EXPLORATION, in Sonora Evrim acquired the low sulfidation epithermal Sarape project,  Minaurum is to commence drilling at the Alamos project and SilverCrest released high-grade intercepts from drilling at Las Chispas. In Veracruz Almadex released drilling results from El Cobre project. ON MINING, Capstone, Leagold, Excellon, Gold Resource, Alamos Gold, Avino, McEwen Mining, Endeavour Silver, Hecla and First Majestic presented production and/or financial results for the second quarter of 2017. Telson sent some ore from Tahuehueto for processing. Leagold received the environmental permit of the portal and ramp for the Bermejal underground deposit in Guerrero. ON FINANCING, Four companies announced the opening/closing of financing rounds:  Oceanus ($3 M), Westminster ($750 K), Silver Bull (CDN$ 1.46 M) and Avino ($25 M). Coeur is to exchange up to $250 M in notes. Avino extended a concentrate prepayment agreement.  ON RESOURCES AND DEVELOPMENT, Mexican Gold released a maiden resource for Las Minitas, Veracruz, comprising 304 K AuEq Oz M&I and 719 K AuEq Oz Inferred, in underground and open pit constrained gold-copper mineralization. ON DEALS AND CORPORATE ISSUES, Prospero Silver and Exploraciones Altiplano reached an agreement on the Buenavista claims in Durango. Radius Gold completed the sale of the Talcolula property to Fortuna Silver. Golden granted Hecla the right to use Golden’s oxide plant in Durango for two more years.

ON MEXICO ISSUES

  • INEGI (Instituto Nacional de Estadistica y Geografía) informed that mining production decreased in the Bajio region, with 28.2% less silver produced in Guanajuato, 3.3% in San Luis Potosi and 1% in Queretaro, from January to May 2017. On gold, production was reduced by 15.2% in Guanajuato, 28.8% in San Luis Potosi and 7% in Queretaro.

ON EXPLORATION

  • Evrim Resources Corp. has defined two major veins in the recently acquired Sarape project in Sonora. The Sarape vein trends NW and is 6 km long and up to 12 m in width, whereas the Chiltepin vein trends W and is 2.6 km long and up to 3 m in width. The western portion of the veins presents barren chalcedonic white quartz with bladed calcite, while the eastern part presents low-temperature, tan-green quartz consistently assaying 0.1 to 0.36 g/t Au across sampled widths, with individual samples assaying up to 3.6 g/t Au.
  • Minaurum Gold Inc. is to commence a 5,000 m diamond drilling campaign at its Alamos Silver project in Sonora. The drilling will focus on seven major veins identified by Minaurum, three of which were the source of the historic 200 M Oz silver production. The three other veins are in down-dropped blocks and are exposed at a high level. Areas to be tested include La Quintera, Promontorio, Gap and Minas Nuevas.
  • Almadex Minerals Ltd. reported assay results from the last drill hole on the Norte zone at its El Cobre project in Veracruz. Drill intercepts include 276.80 m @ 0.67 g/t Au, 0.23% Cu (including 103.85 m @ 1.33 g/t Au, 0.41% Cu); 94.40 m @ 0.73 g/t Au, 0.25% Cu (including 62.0 m @0.97 g/t Au, 0.31% Cu). The hole intersected multiple zones of intense stockwork veining and potassic alteration.
  • SilverCrest Metals Inc. announced additional Phase II drill results for Las Chispas property in Sonora. The new results indicate continued expansion of unmined high-grade mineralization in the Giovanni and William Tell veins, initial high-grade intercepts in the Varela vein and newly discovered Blanquita vein. The most relevant drill intercepts are: 1.9 m 6 g/t Au, 5,018 g/t Ag (including 0.7 m @ 137.5 g/t Au, 13,560 g/t Ag); 0.4 m @ 3.7 g/t Au, 506 g/t Ag; 0.7 @ 2.0 g/t Au, 255 g/t Ag; 4.1 m @ 1.7 g/t Au, 232 g/t Ag; 1.0 m @ 2.0 g/t Au, 313 g/t Ag; 1.9 m @ 0.4 g/t Au, 428 g/t Ag; 0.5 m @ 3.1 g/t Au, 595 g/t Ag; 1 m @ 1.2 g/t Au, 362 g/t Ag.

ON MINING

  • Telson Resources Inc. reported that 4,600 tonnes of ore have been sent from the Tahuehueto mine in Durango to the Atocha toll mill, where it is to be processed at a 300 tonnes per day (tpd) rate. Underground mining from the Level 10 ore shoot, estimated to contain at least 50 K tonnes.
  • Capstone Mining Corp. announced its financial results for Q2 2017, including figures from its operations in Mexico. At Cozamin in Zacatecas produced 4,106 tonnes of copper at cash cost of $1.19 per Cu pound and all-in cost of $1.73 per Cu pound produced. The precious metal streaming arrangement with Wheaton Precious Metal Corp. expired on April 4th; this is to result in an increase to by-product credits of $0.23 per copper pound.
  • Leagold Mining Corp. received the environmental permit for development of the portal and ramp for the Bermejal Underground deposit at Los Filos mine in Guerrero. Six tunneling contractors have completed site visits. Contractor selection is to be completed in August. The location of the portal is at the northern end of the Bermejal open pit, site that offers a deeper starting point, shortest distance to access an initial test stoping area and commencement of the portal within competent carbonate wallrock. The 5 x 5 m ramp is to extend 1,600 m to the central, high grade portion of the mineralization. Portal preparation is expected to commence in Q3 2017, with access to the first stoping area early in 2018 and completion of the ramp to the Central Sector by Q4 2018.
  • Excellon Resources Inc. reported financial results for the second quarter 2017. Dry mining conditions were achieved at the Platosa mine in Durango. Mine production increased to 215 tpd, with access to high-grade ore. The goal is to further increase production to 300 tpd by year end. The Miguel Auza mill was awarded Certification of Clean Industry, Level 1 from the environmental regulator. Net working capital totaled $4.0 M at the end of June, increasing to $6.1 M to the end of July. During the quarter 10,840 tonnes were produced and 13,877 tonnes processed @ 394 g/t 3.5% Pb, 4.5% Zn, recovering 89.8% Ag, 80.4% Pb, 80.7% Zn to produce 160.8 K Oz Ag, 850 K Lb Pb, 1.1 M Lb Zn.
  • Gold Resource Corp. disclosed production results for Q2 2017. At its Aguila property in Oaxaca 113.8 K tonnes were milled (1,293 tpd) @ 1.82 g/t Au, 118 g/t Ag, 0.33% Cu, 1.4% Pb, 4.3% Zn with recoveries of 85% Au, 92% Ag, 78% Cu, 77% Pb, 85% Zn to produce 5,696 Oz Au, 397.7 K Oz Ag, 294 tonnes Cu, 1,207 tonnes Pb, 4,176 tonnes Zn. Cash and cash equivalents by the end of period stood at $16.41 M.
  • Alamos Gold Inc. reported financial results for the second quarter 2017, including figures from its operations in Mexico. At Mulatos 1.76 M tonnes of ore and 1.37 M tonnes of waste were moved (waste-to-ore ratio 0.78), with 1.65 M tonnes @ 0.78 g/t Au stacked on the heap (51,564 Oz Au contained) and 35.3 K tonnes of high-grade ore @ 10.56 g/t Au milled (11,998 Oz Au contained). Mulatos produced 41,000 Oz Au during the period, with a recovery rate of 65% and cash cost of $735 per Au ounce. The San Carlos underground operation is expected to end its current mineral reserve in the third quarter of 2017. At El Chanate 1.05 M tonnes of ore were mined (12,000 tpd) @ 0.41 g/t Au and 4.69 M tonnes of waste moved (Waste to ore ratio of 4.47) producing 17,600 Oz Au. Production at La Yaqui is expected in the third quarter of 2017.
  • Avino Silver & Gold Mines Ltd. presented the financial results for the second quarter 2017. During the period 386 K Oz Ag, 1,954 Oz Au, and 1.1 M Lb Cu were produced at cash cost $8.90 per AgEq Oz and AISC of $10.42 per AgEq Oz. At the end of the quarter Avino held $5.9 M in cash and short term investments for $7.5 M.
  • McEwen Mining Inc. disclosed financial results for the second quarter 2017, including figures from its operations in Mexico. At El Gallo 9,714 Oz Au, 4,966 Oz Ag were produced at cash cost $706 and AISC $843 AuEq co-product. At the end of the period debt free McEwen had $44 M in cash, investments and precious metals.
  • Endeavour Silver Corp. released Q2 2017 consolidated financial results. 1.14 M Oz Ag, 13,058 Oz Au were produced at cash cost $ 8.36 and AISC $20.46 per Oz Ag net of Au credits. The Bolañitos and El Cubo mines in Guanajuato produced higher tonnes and/or grades, while Guancevi in Durango continues to lag behind. The Calicanto and Veta Grande properties were acquired near El Compas, in Zacatecas. The working capital stood at $75 M at the period’s end.
  • Hecla Mining Co. reported second quarter 2017 results, including figures from its operations in Mexico. At San Sebastian in Durango, 867 K Oz Ag, 6,596 Oz Au were produced at cash cost $(3.31) per AgEq Oz and AISC of $0.06 per AgEq Oz. The mill operated at 423 tpd during the period. The mine is transitioning from open pit to underground mining, which is expected by the end of 2017. “It now appears that sufficient material has been identified underground, in open pits and in stockpiles to extend the life of the project through 2020…” Cash and cash equivalents stand at $202 M at the end of the period.
  • First Majestic Silver Corp. presented its Q2 2017 financial results. During the period First Majestic produced 2.29 M Oz Ag, or 3.89 M Oz AgEq from its six mines in Mexico, at cash cost $7.41 per Ag Oz and AISC $14.58. The company maintains $126.9 M in cash and cash equivalents at the end of the period. Three illegal blockades affected production at La Parrilla (4 days), Santa Elena (2 days) and La Encantada (42 days). The company expects 64,500 m of underground development to be completed during 2017, as well as 145,000 m of exploration drilling.First Majestic Q2 2017 operating cost11

ON FINANCING

  • Oceanus Resources Corp. closed a non-brokered private placement raising $3 M. Oceanus intends to begin drilling the unmined Protectora vein, north of El Tigre mine in Sonora.
  • Avino Silver & Gold Mines Ltd. Extended the concentrates prepayment agreement with Samsung C&T UK Ltd. for one year. According to the new amending agreement Avino will sell silver concentrate on exclusive basis to Samsung until December 31, 2021 (Avino, Durango).
  • Westminster Resources Ltd. has received conditional approval from the TSX for its previously announced non-brokered private placement, and announces the closing of the first tranche of said placement, for gross proceeds of $764 K (El Cobre, Sonora).
  • Silver Bull Resources Inc. completed the second and final tranche of the private placement for aggregate gross proceeds of CDN$250 K. Under the initial tranche of the private placement, which closed on July 10th, CDN$1.46 M was raised (Sierra Mojada, Coahuila).
  • Coeur Mining Inc. offered to exchange up to $250 M aggregate principal amount of its 5.875% senior notes due 2024 (Palmarejo, Chihuahua).
  • Avino Silver & Gold Mines Ltd. is to offer shares in the US up to the aggregate amount of US$25 M (Avino, Durango).

ON RESOURCES AND DEVELOPMENT

  • Mexican Gold Corp. announced an initial mineral resource estimate fir the El Dorado/Juan Bran and Santa Cruz zones at its Las Minas project in Veracruz. The total measured and indicated (M&I) resource of 304 K AuEq Oz is contained within 4.97 M tonnes grading 1.90 g/t AuEq. The total inferred resource of 719 K AuEq Oz is contained within 10.3 M tonnes grading 2.17 g/t AuEq. The El Dorado/Juan Bran zone occurs as a sub-horizontal body measuring approximately 650 m N-S by 250 m E-W, varying in thickness from 6.0 to 28.0 m. The Santa Cruz zone is comprised of a series of high-grade stacked lenses of skarn mineralization dipping 50 degrees to the west, measuring about 220 m x 100 m. The initial mineral resource estimate is based on 140 diamond drill holes totaling 19,636 m at El Dorado/Juan Bran and Santa Cruz zones. “The Mineral Resource was estimated using 2.0 metre composites of assay values with “zero grade” inserted into intervals that were not sampled.”Table Las Minas1

ON DEALS AND CORPORATE ISSUES

  • Prospero Silver Corp. entered into an option to own agreement with Exploraciones del Altiplano, S.A. de C.V. to earn a 100% right, title and interest in and to Altiplano’s Buenavista claims in Durango, subject to a 2% NSR. The option agreement constitutes a related party transaction. To earn its 100% interest in the Property, Prospero must issue a total of 750 K common shares to Altiplano on a scheduled calendar over 48 months.
  • Radius Gold Inc. completed the sale of its Talcolula property to Fortuna Silver Mines In. On closing Radius received US$150K cash and 239 K common shares of Fortuna, keeping a 2% NSR royalty. Fortuna retains the right to purchase one-half of the royalty by paying Radius US$1.5 M.
  • Golden Minerals Co. has granted Hecla Mining Co. an option to secure the use of Golden’s oxide plant in Durango fro and additional two years for US$2 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, gold grains on a “tentadura” or ore assaying in a cow’s horn in Chihuahua. Photo by Jorge Cirett.

Tentadura from the El Molino zone

 

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

/ Gambusino Prospector / Leave a comment

During the 30th week of the year (July 24th to July 30th, 2017), with the presentation of second quarter reports, at least 26 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, gold production decreased 1.7% in 2016 to 4.26 M Oz, but US$2,846 M is to be invested in gold projects between 2017 and 2020. ON EXPLORATION, in Sonora Riverside released first phase exploration results at Cecilia; Aztec released historical drilling results on its Cervantes property. In Durango Southern Silver released drilling results from its Cerro Las Minitas project. In Zacatecas Arian Silver commenced an auger drilling program on its lithium projects; Goldcorp updated exploration efforts in the Altiplano; Zenith completed drilling for lithium in the San Juan salt pan, results pending. In Veracruz Almadex released high grade gold-copper results from continuing drilling at El Cobre. ON MINING, Avino Silver, Americas Silver, Coeur, Goldcorp and Agnico Eagle presented production results for the second quarter of 2017. Great Panther applied for a permit on its tailings facility at Topia, in Durango. ON FINANCING, Torex Gold signed an amended agreement on a credit facility for US$400 M; Santacruz closed the first tranche of a non-brokered private placement for $935 K ON RESOURCES AND DEVELOPMENT, Candelaria submitted a MIA (environmental application) on its Caballo Blanco property in Veracruz. Excellon reported high-grade drilling results from its Platosa mine in Durango. ON DEALS AND CORPORATE ISSUES, Goldcorp and Evrim reached an agreement on La Pinta 6 concession in Zacatecas.

ON MEXICO ISSUES

  • Camimex (Cámara Minera de México) informed 12 companies are to invest US$2,846 M in gold projects between 2017 and 2020 in Mexico, with Torex Gold, Goldcorp and Fresnillo PLC leading the list. Present and coming projects include the expansion of Pan American’s Dolores mine expansion (Durango, 112 M), Argonaut’s San Agustin (Durango, 43 M), Alamos Gold’s La Yaqui (Sonora, 12 M), Torex’s Media Luna (Guerrero, 482 M), Goldcorp’s sulfide leach plant at Peñasquito (Zacatecas, 420 M), Fresnillo’s Orisyvo (Chihuahua, 350 M) and the Fresnillo and Mag Silver’s JV on Juanicipio (Zacatecas, 305 M). In 2016, Mexico produced 4.26 M Oz, a 1.7% reduction on the previous year.

ON EXPLORATION

  • Arian Silver Corp. commenced an auger drill program on its lithium projects in Zacatecas. The properties to be auger drilled down to a vertical depth of 20 m are Pozo Hondo, Columpio and Abundancia, to test lithium grades and volumes.
  • Almadex Minerals Ltd. released results from its more recent drill hole at the Norte zone of its El Cobre property in Veracruz. From 204.1 m an interval of 431.9 m @ 0.86 g/t Au, 0.27% Cu was intercepted, including 40.45 m @ 1.38 g/t Au, 0.43% Cu; 46.2 m @ 1.04 g/t Au, 0.29% Cu; 70.45 m @ 2.32 g/t Au, 0.59% Cu.
  • Aztec Minerals Corp. pretends to drill test its Cervantes property in Sonora by September or October. Results of past drilling by Peñoles on the California target in 1996 include 22.1 m @ 0.21 g/t Au; 23.0 m @ 0.40 g/t Au; 99.4 m @ 0.40 g/t Au (including 29.5 m @ 0.74 g/t Au; 88.1 m @ 0.42 g/t Au (including 16.8 m @ 1.16 g/t Au; 141.1 m @ 0.41 g/t Au (including 40.9 m @ 0.96 g/t Au); 42.6 m @ 0.47 g/t Au. A 50 x 50 m soil survey was completed the previous week on the Jasper copper target, where the IP anomaly of the California target continues. A total of 60 rock chip samples were recently collected at two additional copper oxide locations, and a channel sampling program across the gold soil anomaly will commence shortly on the California target.
  • Goldcorp Inc. released an exploration update on the Altiplano around its Peñasquito mine in Zacatecas. Exploration was focused on ground validation of 13 targets identified on the first quarter, as well as regional rock chip and selective leach soil sampling at a 1 km grid spacing near the mine. Biogeochemical sampling of creosote plants is also to be used. A 15,000 m program of reverse circulation (RC) holes to the top of bedrock is to evaluate targets overlain by Tertiary cover in several valleys. Detailed mapping and re-logging of core from the Noche Buena and Santa Rosa projects was carried out.
  • Riverside Resources Corp. released results from the first phase of exploration at its Cecilia project in Sonora. The second batch of samples include 8.0 and 9.7 m wide zones at the North Breccia zone averaging 3.90 g/t Au and 1.2 g/t Au respectively. About 400 m SW from the North Breccia zone a fault zone assayed 5.4 g/t Au over 3.0 m. Several priority drill targets have been selected and the process for drill permitting has started. The target is a low sulfidation epithermal mineralization system within and beneath a felsic volcanic flow-dome complex which has been defined in an area of 1,200 x 400 m, and over 400 m of vertical span.
  • Southern Silver Exploration Corp. released recent results from its current drilling campaign at Cerro Las Minitas, Durango. The last hole intersected 12.5 m true width (TW) @ 154 g/t Ag, 2.0 g/t Au, 3.2% Pb, 3.9% Zn (including 3.0 m TW @ 329 g/t Ag, 4.6 g/t Au, 7.4% Pb, 7.3% Zn); 9.2 m @ 220 g/t Ag, 0.3% Cu, 3.6% Pb, 5.4% Zn.
  • Zenith Minerals Ltd. completed a shallow drilling program at the Zacatecas Lithium project. The 11 auger holes reached a maximum of 27 m of depth at the San Juan salt pans, recovering sediment and brine samples. The brines were within 5 to 15 m of the surface. Drilling results are expected within four weeks.

ON MINING

  • Avino Silver & Gold Mines Ltd. reported second quarter 2017 production results from its Avino property in Durango. At the Avino mine 115.5 K tonnes were mined, 117.4 K tonnes milled @ 76 g/t Ag, 0.53 g/t Au, 0.49% Cu, recovering 84% Ag, 69% Au, 89% Cu to produce 241.7 K Oz Ag, 1,384 Oz Au, 1.13 M Lb Cu. At the San Gonzalo mine 21.2 K tonnes were mined, 20.1 K tonne milled @ 277 g/t Ag, 1.19 g/t Au, recovering 81% Ag, 74% Au to produce 144.3 K Oz Ag, 570 Oz Au.
  • Americas Silver Corp. provided second quarter 2017 production results, including figures from its Cosalá operations in Sinaloa. At Cosalá 134.8 K tonnes of ore were milled @ 66 g/t Ag to produce 242.5 K Oz Ag, 273.5 K Lb Cu, 1.35 M Lb Pb, 2.9 M Lb Zn, or 564.1 K Oz AgEq at cash cost ($2.43) and AISC ($2.43).
  • Coeur Mining Inc. reported second quarter 2017 financial results, including figures from its operations in Mexico. At Palmarejo in Chihuahua 335.8 K tons were mined @ 155 g/t Ag, 2.49 g/t Au, with 335.4 K tons milled and a recovery rate of 87.3% Ag, 91.1% Au to produce 1.45 M Oz Ag, 24,292 Oz Au. Mining rates were 2,600 tons per day (tpd) at Guadalupe and 1,000 tpd at Independencia. Exploration expenses during the quarter were $3.1 M, to accelerate resource expansion and new target definition efforts.
  • Goldcorp Inc. released its second quarter 2017 results, without detail on figures from its various operations in several countries, including Mexico. The by-product cash cost per gold ounce was $510 and all-in sustaining cost (AISC) $800 per gold ounce.
  • Agnico Eagle Mines Ltd. reported second quarter 2017 results, including information on its Mexican operations. At Pinos Altos in Chihuahua 620 K tonnes were processed (6,811 tpd) @ 2.65 g/t Au, to produce 48,196 Oz Au at cash cost $595 per Oz Au and total cash cost of $373 per Oz Au. In late June a new silver flotation circuit was commissioned, and a 10-12% increase in silver recovery is expected. At Creston Mascota, which operates as a satellite operation to Pinos Altos, 596 K tonnes were processed (6,554 tpd) @ 1.17 g/t Au, to produce 12,074 Oz Au at cash cost $610 per Oz Au and total cash cost $550 per Oz Au. Recent drilling of the Bravo and Madrono zones at Creston Mascota has intersected 18.2 m (TW) @ 1.6 g/t Au; 5.4 m @ 10.9 g/t Au; 12.3 m @ 1.7 g/t Au; 10 m @ 1.4 g/t Au; 13.6 m @ 1.4 g/t Au; 13.6 m @ 1.9 g/t Au; 3.5 m @ 4.2 g/t Au; 8.2 m @ 2.5 g/t Au; 5.4 m @ 3.3 g/t Au. At La India in Sonora, 1.33 M tonnes were processed (14,605 tpd) @ 0.65 g/t Au, to produce 24,211 Oz Au at cash cost $617 per Oz Au and total cash cost $552 per Oz Au. The company is evaluating location options to construct additional pad capacity. At the El Barqueño project in Jalisco, 18,200 m of drilling were completed in 55 holes, focusing on the extension of the Azteca-Zapoteca zone, as well as at the Tecolote, San Diego and Olmeca prospects.
  • Great Panther Silver Ltd. has resubmitted the permit application in connection with the Phase II Tailings Storage Facility (TSF) at Topia, Durango, and expects a response with 60 days from SEMARNAT. Normal operations will continue using the existing Phase I TSF, although the deposition of dry tailings cannot continue indefinitely and avoidance of disruption cannot be assured.

ON FINANCING

  • Torex Gold Resources Inc. signed an amended and restated credit agreement with BNP Paribas, Commonwealth Bank of Australia, ING Capital LLC and SG Americas Securities, in connection with the previously announced secured US$400 M debt facility (Los Guajes-El Limon).
  • Santacruz Silver Mining Ltd. closed the first tranche of the previously announced non-brokered private placement for gross proceeds of $935 K (Rosario, Cinco Estrellas in San Luis Potosi).

ON RESOURCES AND DEVELOPMENT

  • Candelaria Mining Corp. submitted the environmental Impact assessment report (MIA) to SEMARNAT (Mexican environmental authority). The company has already received an exploration permit for a 2,000 m program at the La Paila zone, which holds the current resource. Exploration permits for 7,500 m of drilling on several other areas are under preparation. Additional metallurgical test work, re-design of the conceptual pit, resource update, water supply studies and ore and waste rock characteristic studies are to be advanced.
  • Excellon Resources Inc. reported high-grade drilling results from the current program at the Platosa mine in Durango, of which 15,000 m have been completed on 120 drill holes from surface and underground. Relevant intersections include 2.19 m @ 104 g/t Ag, 2.6% Pb, 1.2% Zn; 3.45 m @ 124 g/t Ag, 5.2% Pb, 5.2% Zn; 6.76 m @ 886 g/t Ag, 8.8% Pb, 20.5% Zn; 1.45 m @ 2,995 g/t Ag, 16.4% Pb, 0.9% Zn; 1.06 m @ 1,171 g/t Ag, 9.3% Pb, 2.9% Zn; 3.70 m @ 1,600 g/t Ag, 6.4% Pb, 8.7% Zn; 1.80 m @ 316 g/t Ag, 3.2% Pb, 0.9% Zn; 1.30 m @ 287 g/t Ag, 6.3% Pb, 0.6% Zn; 1.27 m @ 3,574 g/t Ag, 28.2% Pb, 18.7% Zn; 2,10 m @ 1,238 g/t Ag, 5.3% Pb, 2.9% Zn.

ON DEALS AND CORPORATE ISSUES

  • Goldcorp Inc. reached an agreement with San Marco Resources Inc. to acquire the La Pinta 6 concession, adding 80 Km2 contiguous to Noche Buena, providing early stage targets.

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, kaolin mine in argillitized tuffs in eastern Chihuahua. Photo by Jorge Cirett.

DSCN7036

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

/ Gambusino Prospector / Leave a comment

During the 26th week of the year (June 26th to July 2nd, 2017), at least 25 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, no relevant news. ON EXPLORATION, in Sinaloa, Santana Minerals reported drilling results from Cuitaboca; In San Luis Potosi Zenith Minerals started drilling for lithium; in Veracruz Almadex released more drilling results from a new zone at El Cobre; In Zacatecas, Galore terminated an unsuccessful drill program on the San Jose claim.  ON MINING,  Mexus Gold continues with the start-up of the Santa Elena mine in Sonora,  Arian Silver presented financial results for 2016. Santacruz reached a high-grade zone on the Membrillo vein in San Luis Potosi. ON FINANCING, Alio Gold raised CDN$50 M; Minera Alamos closed a private placement for $5.4 M; Minaurum received $3.5 M from warrants; Wealth Minerals obtained $3.3 M on the first tranche of a non-brokered private placement; Santacruz is to run a non-brokered private placement for $5 M; Monarca  Minerals settled a $463 K debt by issuing shares; Hecla announced a cash tender offer for its 6.875% senior notes, due 2025. ON RESOURCES AND DEVELOPMENT, Goldgroup informed the Switchback vein system in Oaxaca continues to grow; Oceanus released the full assays on a high-grade intercept at El Tigre, Sonora. ON DEALS AND CORPORATE ISSUES, Teck agreed to purchase the 21% interest held by Goldcorp on San Nicolás, Zacatecas; On the San Jose concession in Zacatecas, an unsuccessful drill program ended with the termination of Galore’s VP of Exploration. Santacruz is to sell its Gavilanes project in Durango.

ON MEXICO ISSUES

  • No Relevant News.

ON EXPLORATION

  • Zenith Minerals Ltd. commenced a near surface, 11 auger holes, drill program on a salt pan 4 km long by 2 km in width in San Juan del Salado, San Luis Potosi . The drilling is to test for near surface lithium brines to a maximum depth of 25 meters. Both sediments and brines are to be sampled.
  • Almadex Minerals Ltd. received assays for the top 300 m of its first hole in the El Encianl zone of the El Cobre project in Veracruz. A 296.7 m intercept @ 0.32 g/t Au, 0.13% Cu includes 51.73 m @ 0.42 g/t Au, 0.17% Cu; and 100.47 m @ 0.44 g/t Au, 0.15% Cu. Almadex interpretation is that this hole intercepted significant mineralization that is proximal to a porphyry core.
  • Galore Resources Inc. announced that a troublesome drilling program at its San Jose claim in Zacatecas was terminated (see below) after it was forced to abandon its first hole. The company has decided to focus the exploration on the adjoining El Alamo claim, which differs significantly in mineralization style.
  • Santana Minerals Ltd. reported assay results for the first RC (reverse circulation) drill holes testing the southern extension of the Mojardina prospect at its Cuitaboca project in Sinaloa. Shallow drill intercepts include 53 m @ 47 g/t Ag; 15 m @ 100 g/t Ag; 7 m @ 53 g/t Ag, all of these less than 3 m from the surface.

ON MINING

  • Mexus Gold US. continues in the start-up period of cyanide leaching at its Santa Elena mine in Sonora, near Caborca (not to mistake with First Majestic’s Santa Elena mine, also in Sonora).
  • Arian Silver Corp. presented its financial results for 2016. During this period the company divested of the Calicanto silver project in Zacatecas, and focused in lithium properties in the Altiplano. At the end of the year the company had US$1.3 M in total assets, of which US$0.4 M was cash, with total liabilities for US$0.1 M. Twelve concessions were still held on four projects: San Celso, Los Campos, La Africana and Calicanto, and three other properties near San Celso.
  • Santacruz Silver Mining Ltd. intersected the high-grade zone of the Membrillo vein at the Membrillo prospect in San Luis Potosi. Eight muck samples from the production drift assayed 0.10-0.59 g/t Au, 8-121 g/t Ag, 0.12-0.40% Pb, 0.62-7.07% Zn over 0.40 – 0.90 m of true thickness of the vein. “Management anticipates delivering 250 tpd of material from the Membrillo Prospect to the Rosario mill for processing during the third quarter of 2017.”

ON FINANCING

  • Monarca Minerals Inc. settled an aggregate of $463 K in debt with certain of its creditors. Concept Capital Management Inc. now owns 6.5% and 13.9% of the issued and outstanding common shares (Tejamen, Durango).
  • Santacruz Silver Mining Ltd. announced a non-brokered private placement aiming to collect gross proceeds of up to $1.5M (Veta Grande , Zacatecas).
  • Alio Gold Inc. entered into an agreement with a syndicate of underwriters who accepted to purchase units of Alio Gold for gross proceeds of CDN$50M. The net proceeds of the offering will be used to advance its Ana Paula project in Guerrero.
  • Hecla Mining Co. announced a cash tender offer for its outstanding 6.875% senior notes due 2021, of which there is $605 M aggregate principal amount outstanding (San Sebastian, Durango).
  • Minera Alamos Inc. closed the previously announced private placement for gross proceeds of $5.4 M (La Fortuna, Durango).
  • Minaurum Gold Inc. received proceeds of $3.5 M from the exercise of warrants issued on 2015 (Alamos project, Sonora).
  • Wealth Minerals Ltd. closed a portion of the non-brokered private placement previously announced , for gross proceeds of $3.33 M (Coronado, Chihuahua).

ON RESOURCES AND DEVELOPMENT

  • Gold Resource Corp. informed the continued expansion of the Arista Mine’s Swichtback vein system in Oaxaca. The new drill intercepts extend the known mineralization to 625 m along strike, still open in all directions. Drill hole intercepts include 5.25 m @ 1.2 g/t Au, 40 g/t Ag, 0.6% Cu, 1.4% Pb, 7.4% Zn; 5.08 m @ 3.2 g/t Au, 261 g/t Ag, 1.3% Cu, 4.3% Pb, 11.8% Zn; 6.64 m @ 1.49 g/t Au, 220 g/t Ag, 0.7% Cu, nil Pb, 13.2% Zn.
  • Oceanus Resource Corp. released final assays for hole ET-17-144 on the Protectora vein of El Tigre property in Sonora. In a previous release the 0.85 m drill intercept (0.80 m true width, or TW) returned 37.2 g/t Au, 7,339 g/t Ag, and the new release adds assays of 2.84% Cu, 1.38% Pb, 4.06% Zn to the same interval. The nearby Palomitas tunnels have historical reports of 1.1 m @ 3.77 g/t Au, 1,714 g/t Ag (50 Oz/ton).

ON DEALS AND CORPORATE ISSUES

  • Teck Resources Ltd. entered into a binding agreement with Goldcorp Inc. to purchase its 21% minority interest in the San Nicolás project, for cash consideration of $50 M. On completion of the transaction Teck will own 100% of the San Nicolás project in Zacatecas.
  • Galore Resources Inc. decided to terminate drilling at the San Jose claim in Zacatecas, after the driller run a program plagued by mechanical issues. The decision to cease drilling resulted in the termination of the VP of Exploration.
  • Santacruz Silver Mining Ltd. signed a letter of intent to sell its Gavilanes project in Durango to an arm’s length third party.

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, at least two stages of epithermal quartz veining in fine grained sandstone near Aldama, Chihuahua. Photo by Jorge Cirett.

092

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

/ Gambusino Prospector / Leave a comment

During the 25th week of the year (June 19th to June 25th, 2017), at least 25 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, no relevant news. ON EXPLORATION, in Sonora Riverside completed drilling at Glor; SilverCrest released high-grade results from drilling at Las Chispas project and Goldex reported surface assays on its Mingeo property. In Veracruz Almadex released drilling results from its El Cobre project, and Mexican Gold announced an incoming drilling program at Las Minas. In Chihuahua VVC Exploration has obtained surface agreements for its Samalayuca project and Radius Gold is to explore its Amalia project (see below). In Durango Prospero has started drilling at the Matorral target within its Santa Maria project.  ON MINING, Endeavour Silver released the Sustainability and Growth report for 2016. ON FINANCING, First Mining Finance graduated to the TSX; Geologix completed a financing round for $1.2 M and Silver Bull received commitments for CDN$1.3 M. ON RESOURCES AND DEVELOPMENT, Torex released high-grade results from the sub-sill orebody at its Los Guajes mine in Guerrero; Great Panther reported surface drilling assays from its San Ignacio mine in Guanajuato; Santacruz Silver encountered a new vein while drifting at the optioned Membrillo property in San Luis Potosi; Premier Gold presented exploration highlights and high-grade results from its Mercedes mine in Sonora. ON DEALS AND CORPORATE ISSUES, Goldcorp and Orla Mining agreed on the sale-purchase of the Camino Rojo project in Zacatecas; Santacruz optioned from Mexican private companies the Veta Grande and Milpillas properties in Zacatecas; Mx Gold paid the remainder of the purchase price of a gold smelter in Durango from American Metal Mining; Radius Gold optioned the Amalia property from a private owner in Chihuahua.

ON MEXICO ISSUES

  • No Relevant News.

ON EXPLORATION

  • Riverside Resources Inc. completed a nine-hole, 1,942 m, diamond core drill program at the Pitaya target area (4 km2) within the Glor project (36 km2) in Sonora, which is being explored with funding by partner Centerra Gold Inc. Results include 11.0 m @ 0.59 g/t Au and 2.0 m @ 0.46 g/t Au. The results are low compared with the trenching at the surface that showed disseminated gold values in the 0.5-1 g/t Au. Four remaining target areas are to be explored to define drilling targets.
  • Mexican Gold Corp. is to realize a 3,000 metre diamond drilling campaign at its Las Minas project in Veracruz. The drilling program targets expansion at the Cinco Senores zone as well as step-out drilling at the El Dorado / Juan Bran. “Additionally, a field exploration program, consisting of trenching, sampling and mapping will be carried out at the Santa Cruz zone to test the upward continuation of the zone above the area of previous drilling. Trenching, sampling and mapping will also be undertaken at the Pueblo Nuevo concession to further outline the quartz veins recently sampled at the site”.
  • Almadex Minerals Ltd. released results from two more holes at its El Cobre property in Veracruz, in the Norte Zone. Results include 153.5 m @ 0.68 g/t Au, 0.27% Cu (including 84 m @ 0.96 g/t Au, 0.37% Cu); 167 m @ 0.27 g/t Au, 0.12% Cu; 255.64 m @ 0.26 g/t Au, 0.17% Cu. At El Encinal Zone a new area of outcropping stockwork quartz veining was identified. El Encinal Zone is 3.5 km south-southeast of the Norte Zone and 2.5 km southeast of the Raya Tembrillo Zone stockwork veining.
  • VVC Exploration Corp. completed agreements with the land owners on its Samalayuca copper project in Chihuahua. The agreements provide access to all the area of the project, now that the company is focused on a pilot miming startup.
  • SilverCrest Metals Inc. released high-grade intercepts from the Babicanora vein at its Las Chispas project in Sonora. Highlighted estimated true width (TW) intercepts include 6.6 m @ 1.03 g/t Au, 328 g/t Ag; 2.0 m @ 3.78 g/t Au, 68 g/t Ag; 1.2 m @ 3.53 g/t Au, 303 g/t Ag; 7.6 m @ 4.08 g/t Au, 196 g/t Ag (including 2.2 m @ 10.8 g/t Au, 181 g/t Ag). To date, past and present significant intercepts are averaging 4.5 m (TW) grading 521 g/t AgEq. Since acquiring the property 14,205 m of drilling have been performed, with 37 holes in the Las Chispas, William Tell, Giovanni, Espiritu Santo and Varela veins, and 25 holes in the Babicanora area, including the Babicanora and Babicanora footwall veins. Before the end of July 2017, 3,500 meters more of drilling are planned in the phase II in the Babicanora area, and commence underground drilling at Las Chispas main vein.
  • Radius Gold Inc. has entered in an option to acquire (see below) the Amalia project in Chihuahua. Epithermal mineralization has been sampled by Radius in several veins, vein breccias and disseminated zones over 3.5 km strike length and a 600 m vertical interval on a large regional fault zone. At the Campamento zone “a 70-meter-wide zone of intense silicification, and brecciation with massive and stockwork veining has been mapped at the contact between the upper Rhyolite and lower Andesite volcanic sequence.” Rock chip sampling has returned up to 33.3 g/t Au and 288 g/t Ag, with 22 samples averaging 0.75 g/t Au and 65 g/t Ag. The silica is chalcedonic, banded and amorphous, indicating a high level within the epithermal system. The Guadalupe zone is 700 m to the SE and 200 m below, with two samples grading 20.3 g/t Au, 5,360 g/t Ag and 3.05 g/t Au, 476 g/t Ag over 1.2 and 1.3 m respectively.
  • Goldex Resources Corp. reported assay results from initial sampling at its Mingeo property in Sonora. Gold mineralization is in low angle quartz “mantos” (low angle veins) 0.1 – 3.0 m in width. The veins present drag folds, evidence of shearing and are believed to be of orogenic origin. The low angle quartz veins are observed for some 600 m on the property, with the current sampling covering 350 m in the manto1 area. Several other low angle quartz veins occur in the property. All 39 samples from the manto 1 returned assays greater than 0.4 g/t Au, and one sample on the footwall assayed 1.13 g/t Au. Best results include 1.10 m @ 6.86 g/t Au; 0.75 m @ 7.1 g/t Au; 0.62 m @ 10.05 g/t Au; 0.30 m @16.7 g/t Au; 0.7 m @ 7.36 g/t Au; 0.93 m @ 22.2 g/t Au; 0.8 m @ 12.25 g/t Au, 1.80 m @ 8.15 g/t Au; 1.05 m @ 18.9 g/t Au; 1.03 m @ 4.46 g/t Au.
  • Prospero Silver Corp. has started drilling at the Matorral project in Durango, as part of the testing of three properties under its agreement with Fortuna Silver Mines Inc.. Four holes are planned at Matorral, which has 7 km of prospective structures at Matorral, which is one of two targets on the 9,066 hectares Santa Maria del Oro claims. Sampling on the surface has returned up to 460 g/t Ag.

ON MINING

  • Endeavour Silver Corp. released the Sustainability and Growth report for 2016, which informs on a 6.6% decrease in injured frequency rate; the distribution of $140 M in economic value in Mexico (including $40 M in wages and $17 M in taxes); investing more than 68 K hours for 1,600 employees in training; investing $1.5 M in environmental initiatives, reducing energy consumption by 5% and the planting of 34,500 trees; and the reception of the Social Responsible Company award from CEMEFI and the Alliance for Social Philanthropy for all three mines.

ON FINANCING

  • First Mining Finance Corp. received approval from the Toronto Stock Exchange to graduate from the TSV Venture Exchange (TSXV) and list its common shares on the TSX. (Projects in Sonora, Durango, Oaxaca).
  • Geologix Explorations Inc. has completed its non-brokered private placement with an over-subscription of 20% for gross proceeds of $1.21 M. the net proceeds will be used for exploration and development expenditures at its Tepal gold/copper project in Michoacan.
  • Silver Bull Resources Inc. is to issue a private placement for which currently has received commitments for gross proceeds of CDN$1.33 M (Sierra Mojada, Coahuila).

ON RESOURCES AND DEVELOPMENT

  • Torex Gold Resources Inc. released high-grade assays from 25 in-fill drill holes of the Sub-Sill deposit at its Limon-Guajes mine in Guerrero. Results (unknown true width) include 2.3 m @ 11.8 g/t Au, 17 g/t Ag, 0.5% Cu; 4.2 m @ 8.2 g/t Au; 14.8 m @ 27.3 g/t Au, 19 g/t Ag, 0.9% Cu; 9.7 m @ 39.1 g/t Au (including 2.9 m @ 114.4 g/t Au); 6.2 m @ 16.1 g/t Au; 3.1 m @ 107.3 g/t Au, 53 g/t Ag, 2.1% Cu; 8.4 m @ 13.3 g/t Au, 49 g/t Ag, 3.6% Cu; 11.9 m @ 9.2 g/t Au, 77 g/t Ag, 3.1% Cu; 13.0 m @ 32.1 g/t Au, 26 g/t Ag, 0.4% Cu; 11.4 m @ 23.2 g/t Au, 0.2% Cu. “The Sub-Sill area is located between the El Limon and El Limon Sur ore deposits and under the El Limon Sill. The El Limon 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. Structurally, the El Limon Sill target area as well as El Limon and El Limon Sur ore deposits are hosted in a graben bounded by La Flaca fault to the west and the Antena fault to the east, and both are considered to be potential feeders for the mineralization. At the El Limon Sill area, several skarn zones have been identified along the contacts of the carbonate rich sediments and marbles of the Cuautla and Morelos formations and sills fingering out from the main granodiorite stock. High grade gold mineralization have been intercepted in all the different skarn horizons. Within the skarn zones individual ore shoots vary in strike length from approximately 50 meters up to 200 meters, with apparent widths varying from 2 meters to 27 meters.” The Sub-Sill in-fill diamond drilling program comprises a total of 50 holes (7455m), with the 17.5m x 17.5m drill pattern aiming to upgrade 1 M tonnes over an area of 250m x 150m, to the Indicated category, which will support the development of a mine plan. “…the Sub-Sill access ramp has entered into the high grade mineralization at its Sub-Sill underground deposit……. The first 260 tonnes of ore from the Sub-Sill were delivered to the processing plant yesterday. A random sample from each truck load of ore from this first ‘round’ into mineralized Sub-Sill skarn, returned an average grade of 98 g/t Au.”
  • Great Panther Silver Ltd. released assays from surface drilling at its San Ignacio mine in Guanajuato (part of its Guanajuato Mine Complex). The drilling targeted the intersection of the Melladito and Plateros veins, with intercepts including (true width, TW) 19.2 m @ 6.36 g/t Au, 261 g/t Ag; 2.99 m @ 2.18 g/t Au; 100 g/t Ag; 1.68 m @ 3.68 g/t Au, 160 g/t Ag; 0.78 m @ 9.95 g/t Au, 783 g/t Ag; 3.68 m @ 1.51 g/t Au, 194 g/t Ag; 0.91 m @ 5.87 g/t Au, 672 g/t Ag; 6.65 m @ 2.54 g/t Au, 18 g/t Ag; 2.9 m @ 4.04 g/t Au, 22 g/t Ag; 2.03 m @ 10.77 g/t Au, 278 g/t Ag; 3.67 m @ 5.6 g/t Au, 127 g/t Ag; 1.83 m @ 11.05 g/t Au, 160 g/t Ag. The program comprised 32 holes for 7,464 meters with a vertical and horizontal spacing of approximately 50 meters.
  • Santacruz Silver Mining Ltd. reported that drifting work at the rented Membrillo prospect in San Luis Potosi encountered a previously unknown vein now named San Rafael, that is infilled with carbonate and sulfide minerals. To date a drift on the E-W vein (NW-SE is the prevailing strike on the district) over 68 meters has shown the true width to be between 0.5 and 1.6 meters. Chip sampling on the vein returned values of trace-1.4 g/t Au, trace-770 g/t Ag, 0.03-15.9% Pb, 0.28-20.1% Zn.
  • Premier Gold Ltd. presented exploration highlights on its Mercedes mine in Sonora. “Underground drilling along strike from the Corona de Oro mine workings has discovered additional high-grade mineralization…” while “Step-out drilling has expanded the Diluvio deposit” and “Underground development (drifting) is underway to access the Marianas Zone….”. High grade intercepts of the ongoing 50,000 metre program (ten surface and underground rigs) include 1.5 m @ 10.85 g/t Au, 29 g/t Ag; 3.0 m @ 7.78 g/t Au, 33 g/t Ag; 2.4 m @ 15.52 g/t Au, 24 g/t Ag; 3.1 m @ 10.92 g/t Au, 85 g/t Ag; 30.6 m @ 5.17 g/t Au, 13 g/t Ag; 7.7 m @ 4.56 g/t Au, 43 g/t Ag; 2.1 m @ 9.74 g/t Au, 45 g/t Ag; 1.5 m @ 24.4 g/t Au, 138 g/t Ag; 1.5 m 39 g/t Au, 121 g/t Ag; 3.0 m @ 11.2 g/t Au, 99 g/t Ag; 1.5 m @ 18.25 g/t Au, 126 g/t Ag; 4.7 m @ 13.94 g/t Au, 636 g/t Ag.

ON DEALS AND CORPORATE ISSUES

  • Goldcorp Inc. entered into an agreement with Orla Mining Ltd. to sell its 100% interest in the Camino Rojo oxide project. Goldcorp “will receive: (1) 19.9% of the issued and outstanding common shares of Orla, (2) a 2% Net Smelter Return royalty on revenues from all metal production from the project, with the exception of metals produced under a joint venture with Orla, (3) an option to acquire up to a 70% interest in future sulphide projects, and (4) the right to nominate a director to Orla’s Board for as long as Goldcorp’s equity ownership position is greater than 10%.”
  • Santacruz Silver Mining Ltd. has signed an agreement with certain private Mexican companies which grant Santacruz an option to purchase a 100% interest in the Veta Grande and Milpillas properties in Zacatecas, for aggregate cash consideration of US$15.5 M. Currently Santacruz operates the properties on a 60%/40% net profits interest. The payment Schedule includes US$2.5 M on or before December 14, 2017, and US$2.5 M, US$3.0 M, US$4.0 M and US$3.5 M on yearly installments.
  • MX Gold Corp. has paid the remaining amounts due totaling US$450 K to American Metal Mining S.A. de C.V., thereby acquiring 50% of the shares in Inversiones Durango San Luis S.A. de C.V. that holds the IDS smelter project, a past producer gold smelter.
  • Radius Gold Inc. has signed a binding agreement with a private individual to option the 380 hectare Amalia project in Chihuahua. The deal involves a US$5 K payment and staged payments over 5 years totaling US$845 K and US$15 K in Radius shares.

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, epithermal quartz veining in fine grained sandstone near Aldama, Chihuahua. Photo by Jorge Cirett.

083

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

/ Gambusino Prospector / Leave a comment

During the 23rd week of the year (May 5th to June 11th, 2017), at least 25 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, the Mexican government owes more than US$360 M on tax returns to Canadian mining companies. ON EXPLORATION, in Sonora Riverside released assays from recent sampling at Cecilia; Colibri received drill results from its partner at the Pitaya property; and Millrock is to explore the Picacho project. In Chihuahua Sierra Metals released high-grade drilling results from a new structure at its Cusi property; Golden Goliath is to start a field program at San Timoteo and Harvest Gold is to begin a field program at the recently optioned Cerro Cascaron property. In Sinaloa Santana commenced an RC drill program at its Cuitaboca project. Defiance released results from the first hole of the season at the San Acacio property. In Jalisco Plata Latina announced an incoming drill program at Vaquerias.  ON MINING, Pan American Silver continues the expansion at La Colorada and Dolores mines in Zacatecas and Chihuahua. ON FINANCING, New Gold announced the redemption of $200 M in senior notes, and Agnico Eagle made a $9.76 M strategic investment in Candelaria. ON RESOURCES AND DEVELOPMENT, US Antimony started pilot production at Los Juarez pit in Queretaro, and Oceanus disclosed high grade intercepts from a step-out hole in El Tigre, Sonora. ON DEALS AND CORPORATE ISSUES, Endeavour Silver bought the Calicanto and Veta Grande properties from Arian Silver and Impact Silver respectively. Candelaria issued 4.6 M shares to Minera Apolo as partial payment for 65 concessions in Zacatecas, Durango and San Luis Potosi. Mexican Gold made a definitive agreement to acquire three important concessions within its Las Minas project in Veracruz. Millrock optioned El Picacho project in Sonora, and the property has now become a “designated project” under its alliance with Centerra.

ON MEXICO ISSUES

  • The Mexican government plays deaf on tax returns to Canadian companies. The SAT (IRS equivalent) holds more than US$360 M on tax returns to six Canadian mining companies, including US$230 M to Goldcorp, which declined to comment. Other affected companies include Torex Gold (US$66.5 M), Alamos Gold (US$26 M), Agnico Eagle (US$18 M) Endeavour Silver (US$15.6 M) and McEwen Mining (US$6.2 M). The issue was raised by the mining companies with Canada’s Minister of Natural Resources, Jim Carr, who contacted the Secretaria de Economia regarding the VAT tax returns. The matter is to be “investigated”.

ON EXPLORATION

  • Sierra Metals Inc. completed the first phase of systematic drill campaign on the Santa Rosa de Lima structure at its Cusi mine in Chihuahua. The drilling encompassed 36 holes in an approximate grid covering an area 1,000 m long by 400 m depth, with average true width and grade of 4.1 m @ 371 g/t AgEq. Intercepts include 12.0 m @ 757 g/t Ag; 1.8 m @ 709 g/t Ag; 2.0 m @ 1,152 g/t Ag; 3.5 m @ 414 g/t Ag; 3.2 m @ 1,034 g/t Ag; 4.3 m @ 690 g/t Ag; 11.0 m @ 575 g/t Ag. A 24 hole, 13,200 m definition drilling program is to be completed during June. The 12 km long Santa Rosa de Lima structure presents no hydrothermal alteration on the surface, and presents a NW-SE orientation that contrasts with the NE-SW orientation of the structures currently being mined in the district.
  • Santana Minerals Ltd. has commenced a reverse circulation (RC) drilling program at its Cuitaboca property in Sinaloa. The 16 hole, ~2,500 m RC program is to test the vertical and horizontal continuity of mineralisation across the Las Animas and Evangelina zones of the Mojardino prospect.
  • Riverside Resources Inc. released assay results from the first phase exploration program at its Cecilia project in Sonora. The company is targeting epithermal Au-Ag mineralization hosted by a felsic flow-dome complex. The sampling to date has concentrated at the North Breccia and Central zones, where 36% of the samples assayed more than 0.5 g/t Au. Rock sample results are up to 113.7 g/t Au, 288 g/t Ag; 58 g/t Au, 207 g/t Ag; 8.42 g/t Au, 88 g/t Ag. More than 20% of the samples assayed more than 200 g/t Ag, with the highest one returning 310 g/t Ag.
  • Golden Goliath Resources Ltd. is about to start the 2017 field program at its San Timoteo project in Chihuahua, which is deemed to expand “the Terraspec coverage and acquire and incorporate geological, geochemical and structural data from other workings to select specific drill targets in areas further away from the San Martin mine targets”.
  • Colibri Resource Corp. announced drill results received from its JV partner Agnico Eagle Mines Ltd. from its Pitaya property in Sonora, on which Agnico currently holds a 66% interest. Drill results cover 1,543 m in six holes, with drilling on going and further 4,700 m of drilling to be completed. Results include 5.4 m @ 0.5% Cu; 3.6 m @ 0.81 g/t Au; 1.1 m @ 2.2 g/t Au; 3.3 m @ 0.48 g/t Au; 6.4 m @ 0.32 g/t Au; 2.2 m @ 21 g/t Au, 57 g/t Ag; 1.0 m @ 0.48 g/t Au, 34 g/t Ag, 3.1% Cu; 7.0 m @ 0.5 g/t Au; 1 m @ 2.4 g/t Au; 7 m @ 0.36 g/t Au; 4 m @ 0.94 g/t Au.
  • Defiance Silver Corp. released results from the first hole of the ongoing drill program at the San Acacio project in Zacatecas. The drill hole targeted the Esperanza zone and intersected high grade silver, with 27 .03 m of hydrothermal breccia and veins assaying 203 g/t AgEq. The 27.03 m intercept @ 148 g/t Ag, 0.29 g/t Au, 0.1% Pb, 0.7% Zn includes 7.58 m @ 213 g/t Ag, 0.3% Zn; 5.00 m @ 231 g/t Ag, 0.51 g/t Au, 0.4% Pb, 1.7% Zn and 6.05 m @ 122 g/t Ag, 0.74 g/t Au, 1% Zn.
  • Millrock Resources Inc. is to explore the El Picacho project as a designated project on its strategic alliance with Centerra Gold Inc. in Sonora. The project is an orogenic gold target, where Jurassic rocks are juxtaposed in a thrust fault relationship with much older Precambrian age rocks, being located 18 km W-SW from Alio Gold’s San Francisco mine.
  • Harvest Gold Corp. is to start a first phase two-month field program on the recently optioned Cerro Cascaron project with a budget of $225 K, including the opening of two historic adits, detailed mapping, sampling and prospecting of the main vein field, La Cascarita, and the eastern extension across a river valley.
  • Plata Latina Minerals Corp. announced that Fresnillo PLC has initiated drilling at the Naranjillo property in Guanajuato, which it optioned from Plata Latina. The focus of the company is now the Vaquerias project, where previous drilling intersected up to 727 g/t Ag, 0.24 g/t Au over 0.55 m. Drilling is to re-initiate at Vaquerias, Jalisco, in late summer of 2017.

ON MINING

  • Pan American Silver Corp. is continuing with the expansion at its La Colorada and Dolores mines. At La Colorada (Zacatecas) the goal is to rise mine production to 1,800 tonnes per day (tpd) and 7.7 M Oz Ag and significant Pb and Zn. At Dolores (Chihuahua), the goal is to load 17.6 – 18 K tpd on the heap leach pads to obtain 4 – 4.5 M Oz Ag and 109.1 – 115 K Oz Au.

ON FINANCING

  • New Gold Inc. completed the previously announced redemption of its outstanding $300 M 7.0% senior notes due 2010. “The redemption was funded from the net proceeds of its recent issue of $300 million aggregate principal amount of 6.375% Senior Notes due in 2025 and cash on hand.” (San Pedro, San Luis Potosi).
  • Candelaria Mining Corp. announced that Agnico Eagle Mines Ltd. is making a strategic investment of $9.76 M in Candelaria. “Upon completion of the Private Placement, Agnico will own approximately 9.95% of the common shares of Candelaria.”

ON RESOURCES AND DEVELOPMENT

  • United States Antimony Corp. started pilot production from the Los Juarez pit at it Los Juarez property in Queretaro. Approximately 400 metric tons were trucked to the Puerto Blanco mill in Guanajuato. “The permit for a cyanide leach circuit for the Puerto Blanco mill tailings has been reviewed by SEMARNAT (Mexican equivalent of EPA), and USAC is changing the location and design of the tailings pond to comply with their request.”
  • Oceanus Resources Corp. reported a high grade drill intercept from a step-out hole at its El Tigre property in Sonora. The hole in the Protectora vein intersected 3.15 m @ 10.1 g/t Au, 1,991 g/t Ag, including 0.85 m @ 37.2 g/t Au, 7,339 g/t Ag, and a deeper intercept of 1.5 m @ 1,107 g/t Ag. “The mineralized zone consists of several vuggy quartz veins and veinlets carrying galena, sphalerite, chalcopyrite, stromeyerite and pyrite.” This hole is collared some 800 m North of the El Tigre mine, from where the unmined Protectora vein extends for 1,500 m to the North.

ON DEALS AND CORPORATE ISSUES

  • Endeavour Silver Corp. has acquired 100% interest in the Calicanto and Veta Grande properties in Zacatecas. Calicanto was bought from Arian Silver Corp. for US$400 K, is subject to a 3% royalty and covers five >1 km long veins, 1-3 m thick and grades of 100-300 g/t Ag, 1-3 g/t Au, 1-3% Pb+Zn. The Veta Grande property (10 concessions, 152 hectares) was bought from Impact Silver Corp. for US$500 K in shares, covering six Ag-Au-Pb-Zn veins and 14 hectares of surface land on which an idle 200 tpd processing plant is located.
  • Candelaria Mining Corp. announced that it issued 4.6 M shares to Minera Apolo S.A. de C.V., meeting the obligations required to complete the acquisition of 60% of the shares of Minera Apolo. Candelaria holds a right of first refusal to purchase the remaining 40% of the shares of Minera Apolo, which are currently held by four individuals resident in Mexico. Minera Apolo holds 65 claims over 20,475 has in the states of Zacatecas, Durango and San Luis Potosi, including properties in the Pinos district, Lucifer, Km66, Guadalcazar, Cascabel, El Gato and the Noria tailings.
  • Mexican Gold Corp. entered into a definitive purchase and sale agreement to acquire 100% interest in the Pepe, Pepe Tres and San Jose concessions at its Las Minas project. The concessions form the core of the Las Minas property, encompassing six strongly mineralized zones. The agreement states a $433 K payment (plus VAT) upon execution, six monthly equal payments of $22 K (plus VAT) commencing on December 2017 and a final payment of $867 K (plus VAT) on December 2018. The vendors retain a 1.5% NSR, of which one third can be bought by US$500 K, with Mexican Gold having the right of first refusal on the rest.
  • Millrock Resources Inc. entered an option agreement to purchase the El Picacho project in Sonora. The project was identified to Centerra Gold Inc. by Millrock, and it is now to become a “designated project” under the strategic alliance between the companies. An initial payment of US$21,375 has been made on the US$1.723 M option payments due over a four year period. “Seven equal option payments of US$21,375 will be due at six-month intervals. A final option payment of US$1,552,000 would be made to complete the purchase of the mineral rights.”
  • Evrim Resources Corp. optioned its Cerro Cascaron project in Chihuahua to Harvest Gold Corp., which will have the right to earn up to 80% interest. Under the agreement Harvest can earn 70% by investing $6 M in the property, making a 900 K payment and issuing 2 M shares to Evrim over a four year period. Harvest can earn an additional 10% by paying $200 K (or 200 K shares, Evrim’s election), fund a 43-101 compliant feasibility study (FS) and make further $2 M expenditures.

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

Winding dirt road in the Sierra Madre, at Cañada del Güerachi, Chihuahua. Photo by Jorge Cirett.

DSCN7022 - copia Detail Extractor

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

/ Gambusino Prospector / Leave a comment

During the 22nd week of the year (May 28th to June 4th, 2017), at least 25 press releases were announced by companies working in Mexico. ON EXPLORATION, in Sonora Canuc signed an agreement with the San Javier ejido, Riverside regained control of the Thor copper project and San Marco Resources started drilling the Chunibas project. Prospero Silver is to drill test its Santa Maria project in Durango and the Petate and Pachuca Southeast projects in Hidalgo. Vangold is acquiring three properties in Guanajuato and Queretaro. Kootenay completed three holes at La Cigarra in Chihuahua. Mexican Gold is obtaining high grade gold results on the recently acquired properties in Las Minas, Veracruz.  ON MINING, Santacruz, Impact and Marlin reported Q1 2017 operating and financial results. Starcore presented Q4 2017. Great Panther commissioned the refurbished processing plant at Topia, in Durango. Mexus has a new crusher for its Santa Elena mine in Sonora. ON FINANCING, Osisko invested $3.3 M in Minera Alamos, Sonoro received the balance of the $4 M for the sale of La Chipriona in Sonora, and Torex signed a secured $400 M debt facility. ON RESOURCES AND DEVELOPMENT, Avino filed the PEA of its Avino property at SEDAR. Americas Silver is confirming and extending mineralization at its Cosala property in Sinaloa. Consolidated Zinc presented the over-limits results from drilling at Plomosas, Chihuahua. ON DEALS AND CORPORATE ISSUES, Vangold is acquiring seven claims in Guanajuato and Queretaro. Magellan made an extension payment on a MOU to acquire a flotation plant in Nayarit.

ON MEXICO ISSUES

  • No relevant news.

ON EXPLORATION

  • Canuc Resources Corp. announced the signing of a surface use agreement with the San Javier ejido at its San Javier project in Sonora. “The Agreement calls for exploration on 300 hectares of land and also provides binding terms for exploitation (mining) on an area of up to 1,000 hectares. The Agreement requires Canuc to pay $35,000 USD per year during exploration activities and up to $135,000 USD per year during the exploitation phase. The Agreement is binding and has a 25 year term with an additional 5 years provided under Agrarian Laws.”
  • Prospero Silver Corp. has appointed a drilling contractor for its 6,000 m program in late June, which is to cover three projects: Santa Maria del Oro, in Durango; Petate in Hidalgo; and Pachuca Southeast in Hidalgo.
  • Vangold Mining Corp. has entered into agreements to acquire seven mining claims that cover the Patitos, Analy and El Ruso prospects in Guanajuato and Queretaro. The sevcen claims totaling 2,798 hectares have high grade assay results on sampling by the vendors.
  • Kootenay Silver Inc. has completed the first three holes of a 7,500 m core drilling campaign at its La Cigarra property in Chihuahua. Drilling continues on the eastern part of Las Venadas zone, which currently is 400 x 200 m in size. Rock sample results have grade up to 482 g/t Ag in this area.
  • Mexican Gold Corp. reported rock sampling results on its recently acquired Pueblo Nuevo concession adjacent to its Las Minas project in Veracruz. The sampling was carried out on the Tamiagua 1 and 2 veins and on the Dos Rios vein. Results include 0.25 m @ 24.8 g/t Au, 0.22 m @ 23.4 g/t Au; 0.25 m @ 9.5 g/t Au; 0.2 m @ 13.5 g/t Au; 0.5 m @ 5.9 g/t Au; 0.4 m @ 4.9 g/t Au; 0.2 m @ 13.7 g/t Au; 0.2 m @ 13.6 g/t Au.
  • Riverside Resources Inc. has regained 100% interest on the Thor copper project in Sonora, as the company’s joint-venture partner Antofagasta PLC has elected not to continue with the required investment to advance the property. The first four diamond holes in the property confirmed the concept, with three intersecting quartz-sericite-pyrite stockworks.
  • San Marco Resources Inc. has started diamond drilling at its Chunibas project in Sonora, aiming to confirm high grade mineralization within shear veins and test the presence of broad haloes of lower grade Au-Ag within sericite-Fe carbonate altered wall rocks. The drill holes are to probe three targets over 1.5 Km of strike length.

ON MINING

  • Santacruz Silver Mining Inc. reported its Q1 operating and financial results for 2017. At Rosario in San Luis Potosi, 18,723 tonnes were processed @ 66 g/t Ag (226 g/t AgEq) with a silver recovery of 86%, to produce 34.5 K ounces Ag, 195 Oz Au, 45 tonnes Pb, 382 tonnes Zn. At Veta Grande in Zacatecas 26.7 K tonnes were processed @ 117 g/t Ag (209 g/t AgEq) with a silver recovery of 57% to produce 57.6 K Oz Ag, 131 Oz Au, 99 tonnes Pb, 177 tonnes Zn. Cash cost per AgEq Oz was $19.55 and AISC per AgEq Oz was $24.56. The Rosario mill in San Luis Potosi is to work during the next few months with ore from the Membrillo vein (optioned from Grupo Mexico), The Cinco Estrellas property and the Rosario mine. At Veta Grande, Zacatecas, the mill is to be fed by the Chorros, Veta Grande and the Garcia mines.
  • Starcore International Mines Ltd. presented production results for the fourth quarter 2017, period during which 65.8 K tonnes of ore were milled at its San Martin mine in Queretaro, during the first quarter 2017. The average grade was 1.82 g/t Au, 13.5 g/t Ag, with recoveries of 81.9% and 49.7% for gold and silver respectively, to produce 3,365 AuEq Oz.
  • Impact Silver Corp. released financial and production results for the first quarter 2017. The Guadalupe mill was fed ore from the San Ramon Deeps, Cuchara and Mirasol mines at its Zacualpan property in Estado de Mexico. The average mill feed was 177 g/t Ag, producing 230.3 K Oz Ag, while ore production stood at 542 tonnes per day (tpd). The cash position at the end of the quarter was $7.6 M.
  • Marlin Gold Ltd. announced financial results for the first quarter 2017. During the period the company had revenues of $32.6 M, producing 15,556 Oz Au and selling 20,401 Oz Au. Cash and finished gold amount to $5.8 M.
  • Great Panther Silver Ltd. completed the commissioning phase of the refurbished processing plant at its Topia mine, in Durango. The plant is now operating at planned capacity. The company continues to work with the government on the permitting of the phase II tailings storage facility. Run of mine ore is now being processed along with the stockpiled ore.
  • Mexus Gold US. Received a jaw crusher for its Santa Elena mine in Sonora (not to confuse with First Majestic’s Santa Elena mine, also in Sonora). The company intends increase its mining rate to 10,000 tonnes per day.

ON FINANCING

  • Minera Alamos Inc. announced Osisko Gold Royalties Ltd. has purchased on a private placement basis Minera Alamos shares for gross proceeds of $3.3 M. Osisko now owns 19.9 % of Minera Alamos shares. An additional private placement has been announced, same that is intended to raise up to $3.5 M in gross proceeds (La Fortuna, Durango).
  • Sonoro Metals Corp. has received the balance of the $4 M proceeds from Agnico Eagle Mines Ltd., for the sale of the Chipriona project in Sonora. Sonoro has now no further interest in the Chipriona concessions, save for the retention of a 1% NSR, same that can be purchased for $1.5 M.
  • Torex Gold Resources Corp. announced the signing of a binding commitment letter with various lenders in connection with a secured US$400 M debt facility. The Loan facility will be available by way of a US$300 M term loan and a US$310 M revolving loan facility (El Limon-Los Guajes, Guerrero)

ON RESOURCES AND DEVELOPMENT

  • Avino Silver & Gold Mines Ltd. has filed the technical report on the Avino property (in Durango) with SEDAR. The report covers the preliminary economic assessment for the re-treating of the Avino mine tailings, including the resource estimates up to the end of 2016.
  • Americas Silver Corp. reported that infill drilling at its Cosalá operations in Sinaloa confirmed the San Rafael Main Zone model, with mineralization extending for further 350 m. Drilling has started at Los Manueles zone.
  • Consolidated Zinc Ltd. confirmed the final assay results of the high grade Zn and Pb mineralization on the initial six holes on the Tres Amigos target at its Plomosas property in Chihuahua. The intervals with over-limits in Zn returned 1.5 m @ 26.3% Zn, 0.6% Pb, 52 g/t Ag; 1.85 m @ 32.6 % Zn, 0.3% Pb, 3 g/t Ag.

ON DEALS AND CORPORATE ISSUES

  • Vangold Mining Corp. has entered into agreements to acquire seven mining claims totaling 2,798 hectares in Guanajuato and Queretaro. A 100% interest on the claims is to be acquired for an aggregate C$10 K and 3,375,000 Vangold shares, with the vendors keeping a 2.5% net smelter return, of which half can be re-purchased for C$500 K.
  • Magellan Gold Corp. has made a further $100 K option payment for a 60 day extension on its memorandum of understanding (MOU) with Rose Petroleum PLC. The MOU gives Magellan the right to purchase an operating flotation plant in Nayarit for a total consideration of $1.5 M. The $100 extension payment will be credited against the purchase price if the transaction closes.

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

On the center of the picture below, a felsic dike protruding from the lower volcanic group andesites on the Cañada del Güerachi in Chihuahua. The ignimbrites of the upper volcanic group rest on top of the andesites. Photo by Jorge Cirett.

Guerachi

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

/ Gambusino Prospector / Leave a comment

During the 21st week of the year (May 22nd to May 28th, 2017), at least 25 press releases were announced by companies working in Mexico. ON EXPLORATION, Zenith announced sample results from its brine project in Zacatecas. The bulk of exploration press releases relate to work in Sonora, with San Marco commencing exploration of the Oregano project, Minaurum identifying two new structures at its Alamos Silver project (formerly La Quintera), Goldex presenting the exploration status of the Mingeo project, Oceanus presenting drilling results from El Tigre and Alix announcing metallurgical results for its Agua Fria project.  ON MINING, An illegal strike and union blockade paralyzed operations at First Majestic’s La Encantada mine in Coahuila, Fortuna Silver presented financial results for Q1 2017 and Torex reported a fatal accident at its Limon-Guajes mine in Guerrero. ON FINANCING, five companies announced some form of financing, with Evrim closing a private placement for $4.3 M, Arian raising £600 K, West Minster $678 K and Mexican Gold 1.8 M, Bacanora signing a subscription agreement for US$9.6 M and Coeur ending the purchase of 2021 tender notes for $117.9 M. ON RESOURCES AND DEVELOPMENT, Consolidated Zinc has defined new geophysical targets in Plomosas, Chihuahua, Marlin released high grade results from drilling within the pit area in La Trinidad mine in Sinaloa and Almadex Mnerals reported new drill results from El Cobre in Veracruz. ON DEALS AND CORPORATE ISSUES, Goldex entered into a LOI to acquire the Mingeo property in Sonora.

ON MEXICO ISSUES

  • No relevant news.

ON EXPLORATION

  • Zenith Minerals Ltd. has released high grade lithium results from its Zacatecas brine project. Lithium is up to 1,046 ppm on the San Juan lagoon, where a 4 km x 2 km zone with sediment samples over 100 ppm was defined. A passive seismic survey confirmed the presence of a sedimentary basin beneath the surface salt lakes, with a layer 50 to 70 m thick recognized through the area and a yet unconfirmed deeper layer at 150-180 m of depth. A reservoir of brine has to exist to advance the project, with the next exploration steps involving an electrical based geophysical survey followed by drilling.
  • San Marco Resources Inc. commenced exploration at its Oregano project in Sonora. Within the 73 K hectares concession application there is a set of quartz veins interpreted as the shallow part of an epithermal system, with true widths of the veins appearing to be in the 5 to 15 m range. Vein textures include lattice, bladed and cockade features, with quartz varieties including chalcedony, opaline, silica replacing calcite and cryptocrystalline. Initial continuous diamond saw cut channel sampling has returned 23.5 m @ 0.33 g/t Au, 9 g/t Ag; 14.3 m @ 0.31 g/t Au, 5 g/t Ag; 31.4 m @ 0.12 g/t Au, 15 g/t Ag; 16.6 m @ 0.12 g/t Au, 10 g/t Ag.
  • Minaurum Gold Inc. identified two new well mineralized vein systems at its Alamos Silver project (La Quintera). The Europa-Palomas and El Tigre veins lie in a down-faulted block, and their structural model indicates a high level system. The Europa-Palomas vein system can be traced for 1.4 km, with Chips and dumps sampling returning up to 1,085 g/t Ag, 1.3% Cu, 3.1% Pb, 5.3% Zn. The El Tigre vein has been mapped for over 800 m, and chip sampling has returned up to 438 g/t Ag, 0.3% Cu, 1.6% Pb, 11.5% Zn.
  • Goldex Resources Corp. presented the exploration status of the Mingeo property, which it has under a letter of intent (LOI). The property “lies within the carbonate rocks of the Mural or Morita Formation Cretaceous siltstones and Paleozoic carbonate sedimentary rocks of the Sonoran Bisbee-Cananea rift basin. One of the main mineralized structures consists of a low angle dipping quartz epithermal vein/manto with approximately 15° to 20° dip to the NE and a thickness that ranges from 0.50 to approximately 3 metres. Mineralization has been observed to comprise medium grained disseminated pyrite, arsenopyrite, minor chalcopyrite and rare galena”.
  • Oceanus Resources Corp. reported recent drilling assay results from its El Tigre property in Sonora: 67.6 m @ 1.24 g/t Au, 19 g/t Ag (including 23.4 m @ 2.77 g/t Au, 40 g/t Ag); 37.7 m @ 0.62 g/t Au, 12 g/t Ag; 9.0 m @ 0.18 g/t Au, 125 g/t Ag.
  • Alix Resources Corp. announced metallurgical results from lithium bearing clays at its Agua Fria project in Sonora. The acid leach process achieved 99% extraction over four hours with no roasting or expensive reagents required.

ON MINING

  • First Majestic Silver Corp. announced “that a rogue group of union workers have halted activities and blocked the access at the La Encantada mine in Coahuila. The illegal blockade arose after some of the unionized individuals did not agree with the bonus that the company and the National Union of Miners, Metallurgists, Steelworkers and Similar Workers of Mexico (National Union), agreed to offer the miners in lieu of profit sharing.”
  • Fortuna Silver Mines Inc. reported financial results for the first quarter 2017. At San Jose in Oaxaca 267.3 K tonnes were milled (3,108 tonnes per day, or TPD) @ 226 g/t Ag, 1.67 g/t Au, recovering 92% and 91% respectively to produce 1.79 M Oz Ag, 13,116 Oz Au at cash cost $1.35 and AISC $6.61 per silver ounce net of by-product credits. Cash and cash equivalents stood at 191.2 M at the end of the period.
  • Torex Gold Resources Inc. reported a fatal accident at its El Limon-Guajes mine in Guerrero. An employee of a contractor was fatally injured when its truck rolled down a berm on El Limon Sur pit.

ON FINANCING

  • Evrim Resources Corp. has closed its private placement for gross proceeds of $4.3 M (Ermitaño, Sonora; Cerro Cascaron, Chihuahua).
  • Bacanora Minerals Ltd. has entered into a subscription agreement with Capital Research and Management Co. under which Capital will subscribe Bacanora shares for US$9.6 M (Sonora, Lithium project, Sonora).
  • Coeur Mining Inc. announced the expiration date of the previously announced cash tender offer to purchase its 7.85% senior notes due 2021, with $117.9 M of the notes validly tendered, or 66.2% of the 2021 outstanding notes (Palmarejo, Chihuahua).
  • Arian Silver Corp. has raised £600 K before expenses (lithium properties, Zacatecas).
  • Westminster Resources Ltd. closed the first tranche of a private placement, raising gross proceeds of $978 K, and expects to close a second tranche of up to an additional $462 K (El Cobre, Sonora).
  • Mexican Gold Corp. closed a non-brokered private placement for gross proceeds of 1.8 M (Las Minas, Veracruz)

ON RESOURCES AND DEVELOPMENT

  • Consolidated Zinc Ltd. has defined new geophysical targets by reprocessing the magnetic and gravity data collected during the 2016 survey on its Plomosas project in Chihuahua. One of the main points is the interpretation of an intrusive body at depth that could explain the origins of mineralization in the Plomosas mine area. Geochemical vectoring is also being evaluated to assist in determining the presence of such intrusive body.
  • Marlin Gold Mining Ltd. released high grade drill results from the south part of the Taunas pit on its Trinidad mine in Sinaloa. Intercepts include 63.35 m @ 7.57 g/t Au (including 10.0 m @ 29.3 g/t Au); 11.90 m @ 2.53 g/t Au; 10.0 m @ 1.12 g/t Au.
  • Almadex Minerals Ltd. released assay results from drilling at the Norte zone in its El Cobre project in Veracruz. Intercepts results comprise 45.0 m @ 0.65 g/t Au, 0.28% Cu in one hole, and 378 m @ 0.65 g/t Au, 0.28% Cu (including 74.8 m @ 0.65 g/t Au, 0.25% Cu; 28.6 m @ 1.31 g/t Au, 0.57% Cu; 96 m @ 0.76 g/t Au, 0.28% Cu; 59.4 m @ 0.95 g/t Au, 0.33% Cu) in another hole.

ON DEALS AND CORPORATE ISSUES

  • Goldex Resources Corp. has entered into a Letter of Intent (LOI) for an option to acquire a 51% interest in the Mingeo property with Mingeo International S.A. de C.V. by spending US$500 K by April 2020, and another US$500 K by 2022. The Property consists of six concessions totaling approximately 1947 hectares and is located within the major porphyry belt of Sonora.

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

On the picture below, irregular oxidized sulfide veining in a felsic volcanic rock, Central Chiapas. Photo by Jorge Cirett.

Oxidized sulfide veinlet, La Javia SE, 2m from sample 18595

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

/ Gambusino Prospector / Leave a comment

During the 17th week of the year (April 24th to April 30th, 2017), at least 30 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, the country’s gold production declined, although retaining its position amongst the world’s top ten producers. ON EXPLORATION, OZ Minerals announced the commencement of exploration on its Zaachila, Riqueza Marina and Zapotitlan projects in Oaxaca. Candelaria released drill results from a 2012 drilling campaign, not in the technical report, from its Caballo Blanco property in Veracruz. Alix released results from its first drill hole at its Agua Fria lithium project in Sonora, while Zenith reported initial sampling results from its lithium salar properties in Zacatecas. ON MINING, Six companies, including Capstone Mining, Americas Silver, Coeur Mining, New Gold, Excellon and Agnico Eagle, presented Q1 2017 financial and/or production results, including figures from its Mexican operations. ON FINANCING, Three companies, Mexican Gold, Evrim and Geologix, released news relating to private placements for up to $7.7 M. ON RESOURCES AND DEVELOPMENT, Avino presented high-grade drilling results from its Avino mine in Durango, while Agnico Eagle disclosed exploration results at Pinos Altos, Creston Mascota, La India and its Jalisco properties. ON DEALS AND CORPORATE ISSUES, Capstone announced the termination of its precious metals streaming arrangement with Wheaton Silver, Arian Silver informed it is letting its option on the Nochebuena (Zacatecas) tailings project to lapse unexercised, and Telson entered into a definitive agreement with Nyrstar to buy the Campo Morado mine in Guerrero.

ON MEXICO ISSUES

  • Among the Worlds ten top gold producers, Mexico presented the steepest decline in production during 2016, extracting 11.3% less than the previous year. Most of the decline was caused by 46% less gold extracted by Goldcorp’s Peñasquito mine in Zacatecas, due to a grade reduction on the mineral mined. The decline is to continue during 2017 at Peñasquito, which is expected to produce 410 K Oz Au during the year, a 16% drop on the 2016 production, before ramping up as grade increases. Nonetheless Mexico maintains the 9th position among the top gold producers.

ON EXPLORATION

  • OZ Minerals entered into an earn-in agreement with Acapulco Gold Corp. to explore three projects in southern Mexico. Zaachila contains outcrops of extensive silica-iron exhalite and pillowed basalt, typical of many VHMS deposits. Riqueza Marina comprises a suite of bimodal volcanic rocks, including an interpreted felsic dome that contains outcropping silica-iron exhalite, whilst at Zapotitlan an alteration zone 700 metres by 300 metres has been outlined. Exploration is to begin immediately and drilling is expected to commence in the second half of 2017.
  • Candelaria Mining Corp. announced assay results from 55 drill holes that were not included or mentioned on the 2012 technical report by previous project operators. Some of the best intercepts are: 29 m @ 0.64 g/t Au; 19.2 m @ 0.61 g/t Au; 18 m @ 1.3 g/t Au, 59.7 m @ 1.1 g/t Au; 18.5 m @ 0.89 g/t Au; 13.7 m @ 2.38 g/t Au; 101 m @ 0.53 g/t Au; 12.3 m @ 0.52 g/t Au; 11.7 m @ 0.98 g/t Au; 42.4 m @ 0.43 g/t Au; 35.7 m @ 0.78 g/t Au; 8.5 m @ 1.2 g/t Au; 94 m @ 1.29 g/t Au; 147.3 m @ 0.62 g/t Au; 64 m @ 0.49 g/t Au, 39 m @ 0.58 g/t Au; 79.7 m @ 0.77 g/t Au; 90.5 m @ 1.11 g/t Au; 59.5 m @ 0.52 g/t Au.
  • Alix Resources Corp. released results from the first reverse circulation (RC) hole at its Agua Fria project in Sonora. Two intervals intersected lithium mineralization: 33 m @ 1,058 ppm Li, 21 m @ 1,043 ppm Li.
  • GoldCorp Inc. informed a generative study yielded 13 new targets for follow-up testing. The initial study covered a 50 Km x 30 km block centered over the Peñasquito and Concepción del Oro districts.
  • Zenith Minerals Ltd. presented its Q1 2017 activity report, which includes its lithium plays in Zacatecas, near San Jose Caliguey and Illescas. Intial sampling on salt pans returned up to 924 ppm Li in surface sediments, comparable to and higher than those from competitor Li brines in Mexico and the USA.

ON MINING

  • Capstone Mining Corp. presented financial results for Q1 2017, including figures on its Mexico operations. At its Cozmin mine in Zacatecas 4,130 tonnes of copper were produced at cash cost $1.31 per pound, and all-in cost $1.94 per copper pound.
  • Goldcorp Inc. presented Q1 2017 results. The company did not disclose the consolidated 655 K Oz Au production by country. By-product cash cost is $540 and AISC $800 per Au Oz (Peñasquito, Zacatecas).
  • Americas Silver Corp. disclosed production results for Q1 2017, including figures from its Cosalá operations in Sinaloa, where 128.6 K tonnes of ore were milled @ 70 g/t Ag, to produce 250.3 K Oz Ag, 2.39 M Lb Zn, 1.12 M Lb Pb, 308.1 K Lb Cu. Cash cost was $2.61 and all-in sustaining cost $3.21. Production is transitioning from Nuestra Señora mine (where mining is due to end on Q2 2017) to El Cajón mine, and then to the San Rafael mine, now in development. A $2 M exploration budget for the Cosalá operations is to fund the first exploration drilling in the property in over four years.
  • Coeur Mining Inc. released first quarter 2017 results, including figures from its Palmarejo mine in Chihuahua. At the mine 355.8 K tonnes were mined @ 150 g/t Ag, 2.8 g/t Au, with 5% and 93.7% recovery rates for silver and gold respectively, to produce 1.53 M Oz Ag, 30,792 Oz Au.
  • New Gold Inc. disclosed Q1 2017 results, including figures from its operation in Mexico. Cerro San Pedro in San Luis Potosi terminated mining in Q2 2016, and is now in residual leaching, with 9,240 Oz Au, 0.2 M Oz Ag produced at AISC $1,255 per gold ounce.
  • Excellon Resources Inc. announced first quarter 2017 production results from the Platosa mine, Durango. 12 K tonnes were mined, 11.9 K tonnes milled @ 317 g/t Ag, 2.9% Pb, 4.1% Zn, with recoveries of 89.8%, 81.3%, 81.8% silver, lead and zinc respectively, producing 108.1 K Oz Ag, 610 K Lb Pb, 873 K Lb Zn.
  • Agnico Eagle Mines Ltd. presented first quarter 2017 results, including figures from its operations in Mexico. At Pinos Altos in Chihuahua, 553 K tonnes were processed (6,149 tonnes per day, or tpd) @2.71 g/t Au, to produce 45,360 Oz Au at cash cost $350 per gold ounce. At Creston Mascota (< 7 km from Pinos Altos) 524 K tonnes were processed (5,817 tpd) @ 1.16 g/t Au, to produce 11,244 Oz Au at cash cost $525 per Au Oz. At La India in Sonora, 1.4 M tonnes were processed (15,575 tpd) @ 0.74 g/t Au to produce 26,296 Oz Au at cash cost $438 per gold ounce.

ON FINANCING

  • Mexican Gold Corp. arranged a non-brokered private placement for up to $1.5 M gross proceeds (Las Minas, Veracruz).
  • Evrim Resources Corp. announced a private placement aimed to raise gross proceeds of $3.21 M (Ermitaño, Sonora; Cerro Cascaron, Chihuahua).
  • Geologix Explorations Inc. has finalized the terms of the previously announced private placement financing, aiming to raise up to $3 M (Tepal, Michoacan).

ON RESOURCES AND DEVELOPMENT

  • Avino Silver & Gold Mines Ltd. disclosed assay results for 10 more drill holes at its Avino mine in Durango. The drillholes were testing a previously overlooked shallow mineralized zone within the Avino vein system, 240 m in length by 130 m in depth, averaging 15 m thickness. Intercepts include: 4.9 m @ 5.36 g/t Au; 8.8 m @ 1.17 g/t Au, 45 g/t Ag, 0.21% Cu; 11.9 m @ 0.45 g/t Au, 57 g/t Ag, 0.54% Cu; 18 m @ 0.6 g/t Au; 8.4 m @ 2.16 g/t Au, 21 g/t Ag, 0.2% Cu; 24.5 m @ 0.36 g/t Au, 29 g/t Ag, 0.4% Cu; 38.8 m @ 1.07 g/t Au, 29 g/t Ag, 0.1% Cu; 26.5 m @ 1.26 g/t Au, 21 g/t Ag; 20 m @ 2.32 g/t Au, 66 g/t Ag; 4.3 m @ 1.9 g/t Au, 125 g/t Ag, 0.65% Cu; 11.3 m @ 0.97 g/t Au, 54 g/t Ag, 0.24% Cu; 6.45 m @ 1.85 g/t Au, 34 g/t Ag, 0.24% Cu; 6.9 m @ 1.05 g/t Au; 38 g/t Ag, 0.27% Cu; 8.8 m @ 1.24 g/t Au, 14 g/t Ag, 0.14% Cu.
  • Agnico Eagle Mines Ltd. disclosed exploration advances from its operations in Mexico. Drilling at the Bravo zone, 600 m from the Creston Mascota pit (less than 7 km from Pinos Altos, Chihuahua), intersected 12.5 m @ 3.9 g/t Au; 19.2 m @ 3.1 g/t Au; 6.6 m @ 5.1 g/t Au; 4.6 m @ 9.8 g/t Au. A total of 36,000 metres of exploration drilling is planned at the Pinos Altos-Creston Mascota complex in 2017. At La India in Sonora, Drilling was carried within the Main Zone, below the pit design, at the nearby El Realito project with encouraging results. At present El Realito, Cerro de Oro and El Cochi areas are being drilled with the goal of increasing reserves in proximity to the mining areas. At El Barqueño in Jalisco, approximately 45,000 metres of additional drilling is expected on the Olmeca, Azteca-Zapoteca and Peña de Oro sectors, and the El Rayo prospects and the Tecolote-Tortuga areas in the south area of the El Barqueno project. Exploration expenditures in 2017 are expected to total approximately $16.8 million.

ON DEALS AND CORPORATE ISSUES

  • Capstone Mining Corp. informed that subsequent to Q1 2017 end, on April 4, 207, “the precious metal streaming arrangement with Silver Wheaton Corp. After this date, the full silver by-product credit is earned by Cozamin”. This is expected to increase its by-product credits by approximately $0.40 per copper pound.
  • Arian Silver Corp. announced that it will allow its option with Terra Nuevo Mining Ltd. over the Nochebuena tailings project to lapse unexercised. A metallurgical test work showed that the material is highly refractory, and contains other minerals that deem any concentrates to bear penalties by buyers.
  • Telson Resources Inc. entered into a definitive share purchase agreement with Nyrstar Mining Ltd. to purchase all shares of Nyrstar Mexican subsidiary, which owns 100% of the Campo Morado mine in Guerrero. The total purchase price is US$20M, with US$800 K at signature, US$2.7 M on or before June 12, 2017 and US$16.5 M on the closing of the transaction first anniversary. A variable NSR payment from US$20 per tonne to up to 4.25% is to be applied on a sliding scale based on zinc price for the first 10 M tonnes processed.

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, quartz veining in sandstone, Central Chiapas. Photo by Jorge Cirett.

Strong qtz veining in sstones2, sample 24224, North of Tenochtitlan

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

/ Gambusino Prospector / Leave a comment

During the 16th week of the year (April 17th to April 23rd, 2017), at least 23 press releases were announced by companies working in Mexico. ON EXPLORATION, Riverside and Centerra commenced a drilling program in Sonora, while Evrim provided an update on work by First Majestic on its property, also in Sonora. In Chihuahua Kootenay announced its incoming drilling program is to focus on the expansion of the current resource. With three newly acquired projects in Guerrero and Oaxaca, Oz Minerals is to start exploration in Mexico. In Zacatecas Alset has started a drilling program for lithium, whereas in Sinaloa Santana Minerals released diamond saw trench results from two prospects. ON MINING, Fortuna Silver, Premier Gold, Sierra Metals, McEwen Mining, First Majestic and Hecla Mining presented first quarter 2017 production results. ON FINANCING, Prospero Silver secured a C$1.5 M strategic investment from Fortuna Silver, and Capstone Mining amended its senior secured corporate revolving credit facility. ON RESOURCES AND DEVELOPMENT, No relevant news this week. ON DEALS AND CORPORATE ISSUES, Fortuna Silver still is under a management cease trade order (MCTO), Timmins Gold is to change name to Alio Gold, Oz Minerals entered into an earn-in agreement for three properties with Acapulco Gold, and Source Exploration is to change name to Mexican Gold Corp.

ON EXPLORATION

  • Riverside Resources Inc. and partner Centerra Gold Inc. have commenced a 2,000 m diamond drilling program at its Glor gold project in Sonora. The first hole is collared between two trenches that yielded 105 m @ 0.49 g/t Au and 84 m @ 0.53 g/t Au. To date 3.4 km of trenches have been excavated at the project. New trench sampling results include 9 m @ 0.57 g/t Au, 12 m @ 0.47 g/t Au, 18 m @ 0.45 g/t Au, 6 m @ 0.47 g/t Au, 9 m @ 0.64 g/t Au.
  • Evrim Resources Corp. provided an update on recent activity at its Ermitaño project in Sonora, under option to First Majestic Silver Corp. Six additional holes have been completed by First Majestic, although the assays still have to be disclosed awaiting the completion of the company’s community engagement program. Holes 05, 06 and 07 intersected 9.0 to 19.8 m of vein stockwork, veins and healed milled breccia. Vein material and textures include colloform banded, chalcedonic and minor crystalline quartz, common adularia bands and quartz replacing bladed calcite, iron oxide after sulphide, manganese oxide and rare native silver.
  • Kootenay Silver Inc. announced the incoming drill program at its La Cigarra property in Chihuahua is to begin in two weeks. The program will focus on the expansion of the resource by first targeting an 800 m gap between Las Venadas zone and the south end of the resource on Las Carolinas zone.
  • OZ Minerals entered into an earn-in agreement with Acapulco Gold Corp. to explore three projects in southern Mexico: Zaachila, Riqueza Marina and Zapotitlán in Oaxaca. Under the agreement Oz is to make a first-year in-ground expenditure of US$450 K on detailed geological mapping, geochemistry and geophysics. Exploration is to commence immediately and drilling is expected to commence in the second half of 2017.
  • Alset Energy Corp. started drilling at its lithium property La Salada salar in Zacatecas. Two deep holes will test for brine horizons, sediment composition and depth to basement, followed by a shallow subsurface sampling.
  • Santana Minerals Ltd. released diamond saw trenching results at the La Plata prospect and diamond saw trenching results at the Santa Eduviges prospect, both within its Cuitaboca project in Sinaloa. Results include 2 m @ 78 g/t Ag; 1 m @ 1,995 g/t Ag; 5 m @ 242 g/t Ag; 7 m @ 131 g/t Ag at La Plata, and 3 m @ 2.9 g/t Au; 5 m @ 95 g/t Ag; 2 m @ 176 g/t Ag; 4 m @ 178 g/t Ag at Santa Eduviges.

ON MINING

  • Fortuna Silver Mines Inc. announced first quarter 2017 production results, including figures from its San Jose mine in Oaxaca. During the period 267.3 K tonnes were milled at 3,108 tonnes per day (tpd) rate, with an average grade 226 g/t Ag, 1.67 g/t Au and a recovery rate of 92.2% Ag, 91.3% Au, to produce 1.79 M Oz Ag.
  • Premier Gold Mines Ltd. presented production results for the first quarter 2017, including figures from its Mercedes mine in Sonora, where 22,164 Oz Au and 88,572 Oz Ag were produced in the period.
  • Sierra Metals Inc. reported first quarter 2017 production results, including figures from its Mexican operations. At Bolivar in Chihuahua, 243.9 K tonnes were processed (2,788 tpd) @ 1.03% Cu, 15 g/t Ag, 0.20 g/t Au, recovering 81.5% Cu, 78.5% Ag, 52.5% Au to produce 4.5 M Lb Cu, 94 K Oz Ag, 840 Oz Au. At Cusi, also in Chihuahua, 34.5 K tonnes were processed (395 tpd) @ 146 g/t Ag, 0.25 g/t Au, 1.2% Pb, 1.2% Zn, recovering 64.2% Ag, 57.9% Pb, 37.9% Zn to produce 104 K Oz Ag, 150 Oz Au, 761 K Lb Pb.
  • McEwen Mining Inc. reported production for the first quarter 2017, including figures from its El Gallo mine in Sinaloa, where 9,808 Oz Au were produced. The gold grade at the mine is projected to increase on the second half of 2017. At the end of the period the company was debt-free, with $28 M in cash, $8 M of precious metals and $16 M of marketable securities.
  • First Majestic Silver Corp. announced first quarter 2017 production results for 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. Figures on the next table:

First Majestic Q1 2017 production1

  • Hecla Mining Co. disclosed preliminary production for the first quarter of 2017, including figures from its operation at San Sebastian in Durango, where 750.8 K Oz Ag and 6,284 Oz Au were produced, with the mill working at 407 tpd. The mill is leased for 2018 and transition from open pit to underground mining is expected by the end of 2017. “Recent definition drilling on the Middle Vein has shown better continuity of high-grade within the reserve area and exploration drilling continues to define new high-grade material in the vicinity of the mine along the Middle and East Francine veins.” Cash, cash equivalents and short-term investments amount to $213 M.

ON FINANCING

  • Prospero Silver Corp. secured a C$1.5 M strategic investment from Fortuna Silver Mines Inc. Fortuna is to purchase Prospero shares for the amount cited (via private placement), and Prospero will allocate C$1.2 M to drilling selected projects and C$300 K to generative efforts in Mexico. By spending US$3 M in exploration of a selected property, Fortuna can a) Form a 51:49 joint venture on the selected property, b) Earn in a further 19% by spending further US$5 M in exploration on the selected property.
  • Capstone Mining Corp. amended its senior secured corporate revolving credit facility, reducing the credit limit to $350 M, and a staged reduction to $275 M by 2019. Capstone repaid $10 M on April 19, 2017, reducing drawn debt to $298 M while the cash balance is over $100 M..

ON RESOURCES AND DEVELOPMENT

  • No relevant news during the period.

ON DEALS AND CORPORATE ISSUES

  • Fortuna Silver Mines Inc. reports that the SEC’s review of the company’s 2015 annual filings is ongoing and it continues to work diligently and devote all necessary resources to address the SEC comments. The company is under a management cease trade order (MCTO), and expects to be able to complete the filing by May 5, 2017.
  • Timmins Gold Corp. is proposing to change its name to Alio Gold Inc. If the change is approved, it expects to begin trading on both the TSX and the NYSE MKT under the ticker ALO on May 16, 2017 (“The word Alio in Latin means ‘to go in a different direction’”).
  • OZ Minerals entered into an earn-in agreement with Acapulco Gold Corp. to explore three projects in southern Mexico: Zaachila, Riqueza Marina and Zapotitlán in Oaxaca. Under the agreement Oz is to make a first-year in-ground expenditure of US$450 K on detailed geological mapping, geochemistry and geophysics. Exploration is to commence immediately and drilling is expected to commence in the second half of 2017.
  • Source Exploration Corp. has filed documents to change its name to Mexican Gold Corp.

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

On the picture below, orogenic style quartz veining in sandstones, Central Chiapas. Photo by Jorge Cirett.

Quartz stockwork in sstones2, Cerro La Cotorra, near to sample 24216

Highlights on the Fifth Week of March, 2017. Mineral Exploration in Mexico

/ Gambusino Prospector / Leave a comment

During the 13th week of the year (March 27th to April 2nd, 2017), at least 24 press releases were announced by companies working in Mexico. ON EXPLORATION, Alix Resources commenced a lithium drilling program in Sonora, and One World announced an exploration second phase that is to include drilling in Baja California. Canuc presented historical rockchip results from its Santa Rosa property in Sonora, while Almadex resumed drilling at El Cobre in Veracruz, also presenting surface assays supporting a gold copper porphyry target on an undrilled area, and Gainey is finishing a drilling campaign in Nayarit. ON MINING, Americas Silver, Mag Silver and Sierra Metals presented operating and/or financial results for 2016, while First Majestic presented production results from its six mines in Mexico. ON FINANCING, Agnico Eagle announced a US $220 M offering, Wealth Minerals raised $4.86 M and Primero Mining closed an extension on a revolving credit facility for $75 M. ON RESOURCES AND DEVELOPMENT, Endeavour Silver presented a resource estimate for its El Compas mine in Zacatecas. Torex Gold announced a high-grade resource for its sub-sill deposit at its El Limon-Guajes property in Guerrero. Corex Gold continues mine construction at its Santana property in Sonora and Golden Minerals disclosed a corrected resource estimate for its Santa Maria property in Chihuahua. First Majestic presented resource estimates for its six operating mines in Mexico.  ON DEALS AND CORPORATE ISSUES, Santacruz Silver finalized the sale of El Gachi property in Sonora to First Majestic. HECLA exercised the right to lease Golden Minerals mill in Durango until the end of 2018.

ON EXPLORATION

  • Alix Resources Corp. commenced a 3,000 m drilling program at its Agua Fria lithium project in Sonora. The reverse circulation program is to test 5 km of prospective length of sedimentary units hosting Li-enriched clay horizons. Laser induced breakdown spectroscopy is to be used for real-time field analysis of drill cuttings.
  • One World Minerals Inc. announced a second phase program at is Rico Litio project in Baja California. This phase is to include a geophysical survey, geochemical sampling and a 4,000 m drill program to be completed before the end of June 2017. A third phase program will include pump test work to determine aquifer capacity, draw down flow rates and concentrations of lithium and potassium.
  • Canuc Resources Corp. provided a summary of previously compiled information on the Santa Rosa mine in the San Javier district, Sonora. The Santa Rosa mine consists of five levels spanning a strike length of 490 m and 135 down dip, ranging from 0.3 to 5.0 m in width and staying open along strike and to depth. The average of 341 samples of vein material is 1.45 m @ 388 g/t Ag, 2.02 g/t Au, 1.6% Pb, 1.3% Zn. Two subparallel veins, El Capulin and Las Norias, are virtually unexplored.
  • Almadex Minerals Ltd. informed that drilling recommenced in February on the Norte zone of its El Cobre project in Veracruz, and that a second rig has started coring at the site. Two kilometres south of the Norte zone is the undrilled Villa Rica target area, where 18 subcrop and outcrop samples collected in a 150 x 150 meters area (now called Raya Tembrillo). Once the mapping is complete, drilling is planned for the Villa Rica zone later in 2017.
  • Gainey Capital Corp. is currently finishing its phase 1 drill program on its Colomo property in Nayarit, focused on La Higuerita and La Nueva Victoria zones, with results for La Nueva Victoria already released and those of La Higuerita still pending.

ON MINING

  • Americas Silver Corp. presented financial and operational results for 2016. Cash and cash equivalents were $24.1 M by the end of the 2016, with net working capital of $20.1 M. “A low interest rate $15.0 million concentrate pre-payment facility was entered in January 2017 after year end with a subsidiary of Glencore PLC (“Glencore”) to fund a portion of the development costs for San Rafael” (Cosala and San Rafael, Sinaloa).
  • First Majestic Silver Corp. released 2016 production results for its six operating mines in Mexico: La Encantada in Coahuila, La Parrilla in Durango, Del Toro in Zacatecas, San Martin in Jalisco, La Guitarra in Estado de Mexico and Santa Elena in Sonora, according to the following table:

First Majestic 20161

  • Sierra Metals Inc. presented financial results for 2016, which include $42.1 M of cash and cash equivalents by the end of the period, and a net debt of $36.5 M (Cusi and Bolivar, Chihuahua).
  • Mag Silver Corp. presented the financial results for 2016, with working capital of US$139.1 M including cash, cash equivalents and term deposits of $138.3 M. In March 2016, the company closed a $65 M bought deal financing with an over-allotment option that took the total gross proceeds to $74.7 M. During 2016 the company funded $7.36 M on the Juanicipio project (under JV, Fresnillo PLC 56%, Mag Silver 44%). A 20,000 metre exploration drill program is expected to be approved for 2017 for Juanicipio (Juanicipio, Zacatecas; Cinco de Mayo, Chihuahua).

ON FINANCING

  • Agnico Eagle Mines Ltd. announced an offering to an institutional investor in the United States for total consideration of approximately US$220 M (La India, Sonora; Pinos Altos, Chihuahua).
  • Wealth Minerals Ltd. arranged a non-brokered private placement for gross proceeds of up to $4.86 M (Coronado and Valsequillo, Chihuahua).
  • Primero Mining Corp. has closed the extension of the maturity of its $75 M revolving credit facility with its syndicate of lenders.

ON RESOURCES AND DEVELOPMENT

  • Endeavour Silver Corp. reported its initial NI-43-101 mineral resource estimate and a preliminary economic assessment (PEA) for its El Compas mine project in Zacatecas. The indicated resource stands at 184.4 K tonnes @ 104 g/t Ag, 7.31 g/t Au, for 495 K Oz Ag, 34.9 K OZ Au, and the inferred resource is 216.8 K tonnes @ 76 g/t Ag, 5.38 g/t Au, for 527 K Oz Ag, 37.5 K Oz Au. The process is expected to recover 73% and 83.5% of the silver and gold contained in the ore at an estimated cash cost of $9.09 and AISC $9.64 per AgEq Oz. The company has made a production decision subject to receiving an explosives permit and further clarity from the Zacatecas government regarding an exemption from the new Zacatecas state environmental tax.
  • Torex Gold Resources Inc. announced a high-grade CIM compliant resource for the Sub-Sill deposit at its El Limon-Guajes property in Guerrero. Indicated resources include 0.35 M tonnes @ 7.82 g/t Au, 6 g/t Ag, 0.27% Cu, containing 89 K Oz Au, 71 K Oz Ag, and inferred resources include 1.33 M tonnes @ 7.58 g/t Au, 11.5 g/t Ag, 0.6% Cu, containing 324 K Oz Au, 490 K Oz Ag. Near term production is expected from the deposit, as the access ramp is now less than 170 m from the skarn rocks that host it.
  • Corex Gold Corp. is continuing construction and mining activities at its Santana project in Sonora. To date over 23 K tonnes have been placed on the first leach pad, and metal leaching is expected to start later in April. A second leach pad will be supplied with finer crush material, with the results from the two heaps aiding to optimize the process.
  • Golden Minerals Co. released a new resource estimate for its Santa Maria property in Chihuahua. “Due to an adjustment in the precise location of the claim, the updated property position results in an approximate 25 percent reduction to the previously announced inferred resource estimate…”. Indicated resources stand at 180 k tonnes @ 304 g/t Ag, 1.4 g/t Au, for 1.73 M Oz Ag, 8.1 K Oz Au, and inferred resources at 120 k tonnes @ 343 g/t Ag, 1.0 g/t Au, for 1.37 M Oz Ag, 1.64 K Oz Au, with an expected dilution of 10% and 19% respectively.
  • First Majestic Silver Corp. disclosed mineral resource estimates for its six mining units in Mexico and one advanced project: La Encantada in Coahuila, La Parrilla in Durango, Del Toro in Zacatecas, San Martin in Jalisco, La Guitarra in Estado de Mexico, Santa Elena in Sonora, and La Joya in Durango, with the consolidated figures on the following table:

First Majestic Resources to Dec 20161

ON DEALS AND CORPORATE ISSUES

  • Santacruz Silver Mining Ltd. announced the completion of the sale of its interest on the El Gachi property in Sonora, to First Majestic Silver Corp. for total consideration of US$2.5 M plus VAT. The company made payments to JMET LLC (US$0.75 M) and Minera Hochschild Mexico (US$0.5 M + VAT), leaving a non-interest balance of US$1.5 M owing to JMET related to previous restructuring fees. Having divested El Gachi to First Majestic and the San Felipe project to Americas Silver, the company is now to focus on its production assets, The Veta Grande project in Zacatecas and the Rosario project in San Luis Potosi.
  • Golden Minerals Co. announced that Minera Hecla S.A. has exercised its right to extend the lease of Golden’s oxide mill in Durango, through December 2018. At HECLA’s anticipated average 400 tonnes per day production rate, Golden anticipates net cash of approximately $0.4 M per month.

 

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

On the picture below, A hydrothermal breccia hosted in intrusive rocks stands out in a stream polished face, located in the Soconusco region of Chiapas. Photo by Jorge Cirett.

Coatan 093 - copia