Drilling Results

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

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During the 7th week of the year (13th to 19th February, 2017) at least 21 press releases were announced by companies working in Mexico, including a financing round by one company. ON EXPLORATION, in Sonora, Riverside presented 2016 exploration results for an orogenic gold target, and Kootenay informed of drilling results by a partner on a silver property. In Zacatecas Goldcorp informed of exploration results and coming work on several targets and regional exploration. ON MINING, GoGold released financial results for the fourth quarter 2016, Pan American, Capstone, New Gold, Agnico Eagle and Goldpcorp presented 2016 results. Argonaut Gold and Agnico Eagle presented their three-year outlook on production. Primero Mining halted operations due to a strike.  ON FINANCING, One company reported the opening of a non-brokered private placement for 1.85 M. ON RESOURCES AND DEVELOPMENT, Torex Gold reported high grade drill intercepts at its Limon-Guajes mine; Mag silver released high grade results from drilling in the Valdecañas vein; Pan American Silver presented reserve and resource estimates for its operations in Zacatecas, Chihuahua and Sonora. Agnico Eagle present drilling results on a program aimed at increasing resources at its El Barqueño property in Jalisco; Peñoles is to invest US$1,100 M mainly in developing a mine in Guerrero and upgrading a zinc plant in Coahuila.   ON DEALS AND CORPORATE ISSUES, Firma Holdings and MX Gold closed a deal on a smelter in Durango.

ON EXPLORATION

  • Kootenay Silver Inc. announced high-grade silver intercepts from the drill program operated by Pan American Silver Corp. at its La Negra property in Sonora. Intercepts include 30.95 m @ 66 g/t Ag; 44.15 m @ 149 g/t Ag, including 9.15 m @ 449 g/t Ag; 8.7 m @ 352 g/t Ag; 32.15 m @ 237 g/t Ag; 14.4 m @ 98 g/t Ag; 28.55 m @ 145 g/t Ag, including 8.15 m @ 460 g/t Ag.
  • Riverside Resources Inc. reported progress on work funded by its partner Centerra Gold Inc. on the Glor project in Sonora. “The 2016 exploration programs included geological mapping at a 1:5,000 scale, a 37.7 line- kilometre induced polarization survey and a 136 line-kilometre ground magnetics survey.” More than 2,500 geochemical samples were collected, including rockchip, soil and channels on trenches. Results include a 2,200 m by 900 m soil anomaly, broadly coincident induced polarization anomalies, and trench sampling results like 9 m @ 0.42 g/t Au, 27 m @ 0.37 g/t Au and 12 m @ 0.50 g/t Au.
  • Goldcorp Inc. provided an exploration update, including work in Mexico, where three projects accrued almost 14,000 m of drilling on the fourth quarter 2016. At La Palma target (adjacent to the boundary of the final Peñasquito pit) 8,203 m were drilled on 17 holes, with some mineralization intersected. At Saltillito (80 km E from Peñasquito), 1,964 m of drilling in four holes failed to intersect economic mineralization. At Los Lobos, 50 km south from Peñasquito, reconnaissance work is to start on the first quarter 2017. Regional exploration has started on a 50 x 30 km block in the Peñasquito region, and targets are expected to be generated.

ON MINING

  • GoGold Resources Inc. released financial results for the fourth quarter 2016, with $6.9 M revenue from the sale of 413, 941 AgEq ounces, at cash cost $6.70 per AgEq ounce. During the quarter 4,249 Oz Au and 102,371 Oz Ag were produced, for a total of 403,545 Oz AgEq. The Parral tailings project in Chihuahua produced 1,539 Oz Au and 91,022 Oz Ag, while at Santa Gertrudis in Sonora 2,710 Oz Au and 11,349 Oz Ag were produced.
  • Pan American Silver Corp. presented unaudited results for 2016, including figures from its Mexican operations. At La Colorada in Zacatecas, 5.80 M Oz Ag and 2.93 K Oz Au were produced at cash cost $6.15; at Dolores in Chihuahua, production was 3.84 M Oz Ag, 102.76 K Oz Au; at Alamo Dorado in Sonora, 1.86 M Oz Ag, 8.38 K Oz Au were produced. Lead zinc and copper production was not reported by mining unit. Development and mining investments are expected to result in significant production increments in Dolores and La Colorada for 2017.
  • Capstone Mining Corp. presented its financial results for 2016, including production figures for its Mexican operation. At Cozamin in Zacatecas, 14,307 tonnes of copper were produced during 2016 at a cash cost of $1.48 per Lb Cu and all-in cost of $1.88 per Lb Cu. Lower production was a result of a mine development shortfall on the first half of the year, with mine development increasing on the second half.
  • New Gold Inc. presented its 2016 financial results, including figures from its Cerro San Pedro mine in San Luis Potosi. For Cerro San Pedro the 2017 guidance is to produce (from stockpiles, mining has ceased) 35 – 45 K Oz Au at cash cost $1,080 – $1,120 and AISC $1,090 – $1,130. The company had 135.7 M in cash and 50.2 M in short term money market instruments at the end of 2016.
  • Goldcorp Inc. reported full year 2016 results, including figures from its operations in Mexico. At Peñasquito 183 K Oz Au were produced during the fourth quarter 2016. During 2017 gold production is expected to total 410 K Oz, at an AISC of $825 per ounce. The pyrite leach project is to treat Zn tailings and is expected to add 110 to 140 K Oz Au and 4-6 M Oz Ag annually, with production starting on 2019.
  • Argonaut Gold Inc. provided three-year production outlook and updated mineral reserves and resources. First gold production at San Agustin is expected during the third quarter 2017, with the project expected to produce an average of 80 K AuEq Oz per year at cash cost of $650 per gold ounce.

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  • Agnico Eagle Mines Ltd. reported results for 2016 and production estimates for the next few years, including figures from its operations in Mexico. The Exploration budget for Mexico is $26.8 M, with 119,000 m of drilling, of which 65,000 m are in the mine areas and the rest in exploration projects. At Pinos Altos 2.26 M tonnes of ore were processed in 2016 at 6,175 tonnes per day (tpd) grading 2.78 g/t Au to produce 192,772 Oz Au. At the Creston Mascota satellite operation 2.1 M tonnes of ore were processed (5,790 tpd) at a grade of 1.12 g/t Au, to produce 47,296 Oz Au. At La India 5.84 M tonnes of ore were processed (15,948 tpd) @ 0.81 g/t Au, to produce 115,162 Oz Au.agnico-eagle-reserves-and-resources-20161agnico-3-year-outlook11
  • Primero Mining Corp. halted production at its San Dimas mine in Durango due to unionized workers initiating a strike action. “Primero’s key focus in these negotiations has been to better align the short-term bonus structure with overall mine-site performance and profitability, and to move the labour force onto a more continuous shift cycle to improve productivity.”

ON FINANCING

  • Source Exploration Corp. arranged a non-brokered private placement for gross proceeds of $1.85 M, to replace the second tranche of the previously announced non-brokered private placement.

ON RESOURCES AND DEVELOPMENT.

  • Torex Gold Resources Inc. released results from the first round of its step out drilling program for its Sub-Sill target at its Limon-Guajes operations in Guerrero. High grade intercepts (core length) in skarn mineralization include: 2.9 m @ 33.7 g/t Au, 0.3% Cu; 7.4 m @ 23.0 g/t Au, 1.2% Cu; 16 m @ 19.4 g/t Au, 1.0% Cu; 4.1 m @ 23.2 g/t Au, 1.2% Cu; 15.5 m @ 14.9 g/t Au, nil Cu; 5.8 m @ 23.9 g/t Au, 0.1% Cu; 3.9 m @ 112.7 g/t Au, 1.3% Cu; 10.6 m @ 9.1 g/t Au, 3.4% Cu. The 34 hole, 7,727 meter program tested an area roughly 350 m by 150 m, with the system remaining open in several directions. “Gold occurs in low and high sulfidized pyrrhotite rich skarns, while silver and copper mineralization is primarily determined by the degree of sulfidation of the host skarn. Mineralization is strongly associated with a late stage retrograde alteration characterized by amphiboles, chlorite, calcite ± quartz ± epidote, affecting pyroxene-garnet marble related exoskarn and granodiorite porphyry related endoskarn. Locally mineralization occurs in narrow lenses of massive sulfides.”
  • Mag Silver Corp. reported results for 13 exploration and infill holes that extend the high-grade mineralization on the Deep Zones of the Valdecañas vein system on their Minera Juanicipio JV with Fresnillo PLC in Zacatecas. The Deep Zone West has now been traced over 550 m, with vein widths from 11.4 m to 26.5 m and a minimum vertical height of 200 m. The Deep Zone East is continuous over 750 m, 5.6 m to 29.9 m in width, with up to 300 m of vertical extent. Underground development and mining infrastructure continue to be progressed, the ramp reached the uppermost part of the Valdecañas vein in December 2016 and footwall development has commenced.Drill highlights, Feb 20171.jpg

 

  • Golden Minerals Co. presented a preliminary economic assessment (PEA) for its Santa Maria project in Chihuahua. Indicated resources stand at 180 K tonnes @ 304 g/t Ag, 1.4 g/t Au and 160 K tonnes of inferred resources @ 321 g/t Ag, 0.9 g/t Au. Life of mine (LOM) of 3.2 years, for production of 2.1 M Oz Ag, 7.2K Oz Au at cash cost $12 per silver ounce (net of Au credits).
  • Pan American Silver Corp. reported reserves and mineral resources as of the end of 2016, which includes figures on its La Colorada mine in Zacatecas, Dolores mine in Chihuahua and La Bolsa project in Sonora.pan-american-silver-reserves-and-resources1
  • Telson Resources Inc. completed an agreement for the acquisition of a sulfide flotation mineral processing facility for CDN$1.3 M, 50% to be paid immediately and the balance when the plant is transported. “Equipment purchased is estimated to make up approximately 80% of the total milling equipment required to construct a fully functioning mill facility at Tahuehueto.”
  • Agnico Eagle Mines Ltd. presented advances on its exploration program at El Barqueño, Jalisco. During 2016 40 holes were drilled in the Olmeca area, in the Socorro and Mortero veins. The Socorro vein has been defined for 1.6 km, and remains open. Results include 5.2 m (true width) @ 19.1 g/t Au, 14 g/t Ag; 4.3 m @ 2.8 g/t Au; 12.1 m @ 7.0 g/t Au, 5 g/t Ag; 6.9 m @ 7.3 g/t Au. The Mortero vein has been delineated for 300 m in length and 300 m in depth, and remains open in all directions. At the Mortero vein results include 39.6 m @ 51 g/t Ag; 41 m @ 73 g/t Ag; 16.4 m @ 1,111 g/t Ag . “Approximately 45,000 metres of additional drilling is expected to be completed by the end of 2017 at the El Barqueno project, principally at the Socorro, Mortero, Tierra Blanca, Cuauhtémoc, Peña de Oro, Peña Blanca, San Diego, and El Rayo prospects and in the Tecolote-Tortuga areas, within the south area of the El Barqueno project. Exploration expenditures in 2017 are expected to total approximately $16.8 million”.
  • Industrias Peñoles is to invest US$1,100 M in Mexico. The Rey de Plata mine (Au-Ag-Cu-Pb-Zn) in Guerrero is in construction, and production is expected by the end of 2017 at a rate of 4,500 tonnes per day; the price tag is estimated at $450 M. The zinc processing plant in Torreon, Coahuila, is also being upgraded to produce 50% more than the current output by early 2018.

ON DEALS AND CORPORATE ISSUES

  • Firma Holdings Corp. which has a JV with MX Gold Corp. regarding its Durango Smelter Project, has now completed the purchase of 100% interest in Inversiones Durango San Luis, S.A. de C.V.. “The acquisition includes a fully permitted smelter that was completed in 2014 for a throughput capacity of 50 tonnes per day (TPD). The smelter was built to receive and process high-grade direct ship ores and concentrates from small-scale miners…”.
  • MX Gold Corp. entered into a binding option agreement with American Metal Mining S.A. de C.V. whereby, upon certain scheduled payments totaling US$1.525 M, will acquire 50% of the shares of a private Mexican corporation that holds the IDS project, which includes a past producing gold smelter in Durango.

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, breccia-vein float in central Chihuahua, displaying quartz vein and minor volcanic rock fragments in a silicified reddish matrix.

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

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During the 6th week of the year (6th to 12th February, 2017) at least 25 press releases were announced by companies working in Mexico, including the completion or starting of financing rounds by seven companies. ON EXPLORATION, in Sonora, Riverside presented drilling results from a porphyry copper target. In Zacatecas, Canasil presented results from the first hole of the present drilling campaign. Prospero Silver presented an exploration update of its properties in Chihuahua and Hidalgo. ON MINING, Marlin Gold released production figures for January, and US Antimony presented production estimates for 2016.  ON FINANCING, Six companies reported the opening or closing of financing rounds for a consolidated total of $529 M. The large majority of this amount is by Alamos Gold, Leagold and Fortuna Silver.  ON RESOURCES AND DEVELOPMENT, Leagold filed a technical report, Coeur presented resources estimates to 2016, Consolidated Zinc and Alamden presented drilling results and Mexus Gold an update on mine development.  ON DEALS AND CORPORATE ISSUES, Excellon made a deal on concentrate sales, Plata Latina closed the deal on one of its Guanajuato properties and Colibri confirmed its shares are still suspended.

ON MEXICO ISSUES

  • Silver Production. Six of the main silver producers anticipate a 15% increase of production on the metal for 2017 over 2016, from 88.6 to 102 M Oz Ag. The companies surveyed by Bnamericas include Fresnillo PLC, First Majestic Silver, Pan American Silver, Fortuna Silver, Coeur Mining and Endeavour Silver.

ON EXPLORATION

  • Prospero Silver Corp. provided an update on recent exploration work on its projects. At Petate (Hidalgo) has secured surface access and drill permits for 27 drill sites, with JV negotiations underway. At Pachuca Southeast (Hidalgo) Prospero is to present permit applications for four drill sites, after being cleared by the INAH (Mexican archeology agency). At Bermudez (Chihuahua) additional mapping and sampling has been completed, assay results are pending for 51 samples that will aid in drill site selection. Prospero has been field reviewing several sites for the past three months, and has two projects advancing to the staking stage.
  • Canasil Resources Inc. released results from its first drill hole on the current drilling campaign at its Esperanza project in Zacatecas. “This drill hole intersected an extended interval of banded quartz veins, veinlets and breccias hosted within fractured and brecciated volcanic rocks… ”. Results in this hole include true width (TW) intervals: 1.36 m @ 0.08 g/t Au, 23 g/t Ag, 2.0% Zn, 1.3% Pb; 1.67 m @ 0.11 g/t Au, 5 g/t Ag, 3.6% Zn, 0.5% Pb and 3.08 m @ 0.14 g/t Au, 21 g/t Ag, 2.6% Zn, 0.8% Pb. “The La Esperanza vein system has now been traced by drilling to a depth of 375 metres below surface and over a strike length of 245 metres and remains open for further expansion.”
  • Riverside Resources Inc. reported drill results with Antofagasta at Thor, Sonora. The four diamond holes totaled 1,335 m, with no Cu or Au intercepts over material widths; however,a large Laramide age porphyry style quartz-sericite-pyrite stockwork zone was encountered. The results of this program “justify additional exploration work… ”. Riverside and Antofagasta have reviewed the results and now plan to progress the project with Riverside as the operator.

ON MINING

  • Marlin Gold Mining Ltd. stacked 7,447 Oz Au during January at a grade of 1.87 g/t Au, in addition to a 485 K tonne stockpile @ 1.37 g/t. Gold recoveries during January averaged 231 ounces per day, at an expected cost below $290 per ounce. The company is accelerating mining to reach the southern part of the high grade HS zone by the third quarter of 2017.
  • United States Antimony Corp. reported production estimates for 2016 and 2015, which includes undisclosed figures from its Mexican operations. During 2016 the company benefited of the 46% antimony price increase from a low of $2.40 to $3.52 per pound by year end. During January 2017, 90 K Lb of Sb were shipped from two of its Mexican mines to the company’s Madero smelter. The alkaline leach plant has been tested, and the flotation mill is to begin test runs during February.

ON FINANCING

  • Almaden Minerals Ltd. closed a non-brokered private placement amounting $3.4 M. The proceeds are to be used to advance the Ixtaca deposit towards the completion of pre-feasibility studies, continue permitting work, continue exploration drilling, and for general working capital (Tuligtic, Puebla).
  • Galore Resources Inc. informed the company’s board of directors authorized management to proceed with a loan arrangement with a senior officer / director of the Company, whereby the Company will borrow USD$150 K. The Company is to settle also a CDN$51 K debt with a former related party by the issuance of shares (Dos Santos, Zacatecas).
  • Mammoth Resources Corp. is to proceed with a non-brokered private placement with the aim to accruing $150K to advance exploration activities on its Tenoriba property in Chihuahua.
  • Alix Resources Corp. announced the completion of the first tranche of a non-brokered flow through private placement for gross proceeds of $180.9 K, and additionally completed a non-brokered non-flow through private placement for gross proceeds of $395.7 K (Elektra, Sonora).
  • Alamos Gold Inc. has closed its previously announced deal offering for gross proceeds of US$250 M (Mulatos, Sonora; Esperanza, Morelos).
  • Fortuna Silver Mines Inc. completed a previously announced bought deal financing for gross proceeds of US$74.8 M (San José, Oaxaca).
  • Leagold Mining Corp. filed a preliminary prospectus with the securities regulatory authorities in each of the provinces and territories of Canada, except Quebec, in connection with its proposed distribution of subscription receipts (to be converted into shares). The cash required for the $279 M payment for Los Filos mine purchase (in Guerrero) is expected to be raised from the net proceeds from the Offering and the net proceeds from up to $200 M of term loan credit facilities.

ON RESOURCES AND DEVELOPMENT.

  • Mexus Gold US. continues to place mined material on the heap, with the first three meter lift nearing completion. Cyanide leach is expected to begin by the end of March.
  • Almaden Minerals Ltd. released drilling results within and immediately outside the amended PEA pit, including potential new zones of veining, at its Tuligtic property in Puebla. Intersects include 41.45 m @ 1.52 g/t Au, 117 g/t Ag; 11.3 m @ 1.56 g/t Au, 132 g/t Ag, 32.55 m @ 0.72 g/t Au, 17 g/t Ag; 18.45 m @ 1.66 g/t Au, 59 g/t Ag; 8.05 m @ 3.59 g/t Au, 329 g/t Ag; 0.75 m @ 17.7 g/t Au, 1,350 g/t Ag; 17.9 m @ 1.62 g/t Au, 162 g/t Ag; 61 m @ 0.53 g/t Au, 82 g/t Ag. Some of the high grade intervals included within those broader intercepts are: 4.6 m @ 6.68 g/t Au, 565 g/t Ag; 5.15 m @ 3.16 g/t Au, 273 g/t Ag; 1.10 m @ 17.2 g/t Au, 920 g/t Ag; 0.5 m @ 16.85 g/t Au, 3,120 g/t Ag; 2.0 m @ 12.8 g/t Au, 1,136 g/t Ag).
  • Consolidated Zinc Ltd. presented definition drilling results on its Plomosas mine in Chihuahua. True width intercepts include 1.65 m @ 25.7% Zn, 10.5% Pb, 64 g/t Ag; 0.45 m @ 18% Zn, 16.7% Zn, 104 g/t Ag; 2.98 m @ 3.7% Zn, 1.9% Pb, 19 g/t Ag. Three tenement applications were filed to protect adjoining ground to the Plomosas operations.
  • Coeur Mining Inc. announced year-end 2016 reserves and resources, which includes figures on its Palmarejo mine in Chihuahua and the La Preciosa project in Durango. At Palmarejo and La Preciosa consolidated reserves and resources amount to 78.6 M Oz Ag, 1.087 M Oz Au and 118.6 M Oz Ag, 202 K Oz Au respectively.coeur-reserves-and-resources-20161-copia
  • Leagold Mining Corp. filed a NI 43-101 technical report on its Los Filos gold mine in Guerrero. The report describes the Los Filos mine operations, mineral reserves and resources, and a financial evaluation of the current mine. The M&I resources (inclusive of mineral reserves) stand at 422.5 M tonnes @ 0.85 g/t Au (11.479 M Oz Au) and 162 .6 M tonnes @ 0.76 g/t Au on the inferred resources category (3.995 M Oz Au). To the end of the third quarter 2016, the mine had produced 194 K Oz Au at AISC US$854 per ounce. “The Mine currently consists of two open pit mines, Los Filos and El Bermejal, an underground mine at Los Filos and the opportunity to develop an underground mine at El Bermejal as an expansion project. The open pit operation began commercial production in 2008. Gold is recovered from crushed and run-of-mine ore via a conventional, low cost heap leach process.”

ON DEALS AND CORPORATE ISSUES

  • Excellon Resources Inc. negotiated offtake arrangements for 2017 with two purchasers for its lead-silver and zinc concentrates, with material reduction (60%) in treatment and refining charges.
  • Plata Latina Minerals Corp. has formally entered into the option agreement with Fresnillo PLC respect the Naranjillo property in Guanajuato. Terms include an initial payment of US$400 K (paid), an aggregate US$1.65 M in five 6 month installments and US$500 K at the end of the term to acquire the property. Fresnillo must incur US$3.0 M in exploration expenditures over the term, and Plata Latina will retain a 3% NSR, of which 2% can be bought by US$1 M and the remaining 1% by US$5 M.
  • Colibri Resources Corp. announced that “trading in the shares of the company remains halted pending receipt and review of acceptable documentation regarding the Fundamental Acquisition of Canadian Gold Resources pursuant to Listing Policy 5.6 (d) of Exchange Policy 5.3.

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 vein float on a rock fence in central Chihuahua, displaying silica banding, brecciation and re-sealing.

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

/ Gambusino Prospector / Leave a comment

During the 5th week of the year (30th January to 5th February, 2017) at least 17 press releases were announced by companies working in Mexico, including three preliminary production reports for 2016 by New Gold, Americas Silver and Excellon. ON EXPLORATION, in Chihuahua one company presented drilling results from a property near Parral, and one other is to start a drilling program in the Sierra Madre. ON MINING, New Gold, Americas Silver and Excellon presented preliminary production results for 2016. In Oaxaca operations were suspended in a mine after a fatality, while at the same site high grade step-out drilling results were released. In Durango high grade drilling results were released on a mine that is seeing its water management system overhauled.  ON FINANCING, Three companies reported conducting financial operations, for a consolidated total of $2.75 M. ON RESOURCES AND DEVELOPMENT, high grade drilling intercepts step-outs were reported for mines in Mexico State and Durango.  ON DEALS AND CORPORATE ISSUES, a large property in Sonora with enticing exploration potential was optioned, and a small concession in the same area was sold. In Zacatecas the sale of a concession is now complete.

ON EXPLORATION

  • Kootenay Silver Inc. released results from the seven remaining drill holes on the 700 m long La Soledad structure, at its La Cigarra property in Chihuahua. The holes tested a 700-meter strike length of the La Soledad structure, which extends southward along strike from the La Cigarra silver deposit for a distance of approximately 2 kilometers. The latest results show the continuity of the structure, although at low silver values. “Follow up drilling on both the 3.8 kilometer RAM and 2.0 kilometer Soledad structures remain a priority for the Company, as does the drilling of known underlying high-grade mineral extensions on the La Cigarra silver deposit.”
  • Golden Goliath Resources Ltd. announced that drilling is to commence at its La Reforma property in the Uruachic district of Chihuahua, by optioner Fresnillo PLC.

ON MINING

  • New Gold Inc. presented 2016 production results, including figures from its Cerro San Pedro operations in San Luis Potosi. Cerro San Pedro finished active mining late in the second quarter 2016 and is now into residual leaching. During the year 64,993 Oz Au, 0.2 M Oz Ag were produced at cash cost $1,014 and AISC $1,045 per gold ounce. For 2017, Cerro San Pedro is expected to produce 35 -45 K Oz Au on its first year of residual leaching.
  • Americas Silver Corp. released production results for 2016, and guidance for 2017. At the Cosalá operations 500.5 K tonnes were milled @ 78 g/t, to produce 1 M Oz Ag, 10.5 M Lb Zn, 4.2 M Lb Pb, 1 M Lb Cu. At cash cost $7.79 and AISC $9.31 per silver ounce. The first exploration budget in four years envisages $2 M on targets at the San Rafael/El Cajón corridor and at the San Rafael 120 Zone. The construction of the San Rafael project began on late 2016, and is to be operational by the third quarter of 2017. Glencore has facilitated a low interest $15 M concentrate pre-payment to fund a portion of the development costs.
  • Gold Resource Corp. voluntarily halted operations at its Arista mine in Oaxaca, after the death of an employee in an accident involving heavy equipment inside the mine. “This accident follows a recent unrelated fatality of a worker employed by a narrow-vein mine contractor at the Arista Mine as a result of a ground fall event. The Company and the contractor immediately notified governmental authorities following the first accident, and the authorities’ initial investigation concluded there was no wrong-doing on the part of the Company or the worker.”
  • Excellon Resources Inc. presented 2016 production results for 2016 from its Platosa mine in Durango, where 53.2 K tonnes were mined and 55.6 K tonnes were milled @ 456 g/t Ag, 4.4% Pb, 5.7% Zn with recoveries of 90.5% Ag, 82.1% Pb, 80.2% Zn to produce 752.7 K Oz Ag, 4.43 M Lb Pb, 5.58 M Lb Zn. A water management system comprising a primary booster station and a couple more pumps is being implemented to create a “depression cone” that permits dry mining conditions. The system was successfully tested in the last quarter of 2016, and is expected to be fully operational on the second quarter of 2017.
  • Gold Resource Corp. announced additional step-out intercepts of the Switchback vein system at its Arista mine in Oaxaca. The two drill results released include 5.01 m @ 4 g/t Au, 66 g/t Ag, 0.5% Cu, 4.3% Pb, 5.9% Zn; 1.88 m @ 5.88 g/t Au, 63 g/t Ag, 0.9% Cu, 2.5% Pb, 7.9% Zn. The Switchback system now extends for 575 m along strike, 275 m more than at January 1st , 2017.

ON FINANCING

  • Alix Resources Corp. arranged a non-brokered private placement for aggregate gross proceeds of $250 (Elektra, Sonora).
  • Aura Silver Resources Inc. closed the second and final tranche of its non-brokered private placement for gross proceeds of $500 K in both tranches (Taviche, Oaxaca).
  • Almadex Minerals Ltd. announced a proposed non-brokered private placement to raise approximately $2 M (El Cobre, Veracruz).

ON RESOURCES AND DEVELOPMENT.

  • Excellon Resources Inc. released results from its surface and underground exploration program at its Platosa mine in Durango. To date 5,400 m have been completed from the 26,000 m program initiated on Q3 2016, focused on defining additional shallow mineralization near existing infrastructure. Intercepts include 2.4 m @ 686 g/t Ag, 4.7% Pb, 6.2 % Zn; 2.0 m @ 504 g/t Ag, 4.3% Pb, 7.1% Zn; 1.2 m @ 843 g/t Ag, 0.4% Pb; 3.0 m @ 795 g/t Ag, 9.2% Pb, 25.8% Zn.

ON DEALS AND CORPORATE ISSUES

  • Riverside Resources Inc. signed two agreements, consolidating the La Cecilia (formerly Cerro Magallanes) project in Sonora. Riverside signed an option to purchase agreement to acquire 100% interest in the three Cecilia-Margarita concessions from Gunpoint Exploration Ltd., with the following payment schedule: $10 K on signature, $15 K and 100 K Riverside shares on the filing of the agreement, $25 K and 200 K on the first anniversary, $75 K and 300 K shares on the third anniversary and $125 K and 400 K shares on the third anniversary. Additionally, Riverside purchased the Violeta concession from Millrock Resources Inc. for C$10 K and 100 K Riverside shares and a 0.5% NSR. The La Cecilia project comprises a felsic volcanic edifice/dome and numerous felsic dikes cutting through a Mesozoic sedimentary sequence. A low sulfidation epithermal system developed on the complex volcanic center, with gold related to structures and breccias and strong alteration. There are several target areas in the project, some of which have seen drilling by past operators with intercepts of up to 1.4 g/t Au over 30 m.
  • Arian Silver Corp. announced the sale of the Calicanto property in Zacatecas is now complete, having received the final US$400 K + IVA (VAT).

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 vein float in central Chihuahua, displaying lattice calcite replaced by silica, evidence for boiling in a low sulfidation epithermal system.

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

/ Gambusino Prospector / Leave a comment

During the 1st week of the year (2nd to 8th January, 2017) at least nine press releases were announced by companies working in Mexico, including three quarterly reports. ON MEXICO ISSUES, the country retains the first place for the sixth year in a row as the top silver producer of the world. ON EXPLORATION, very high grade gold drill intercepts were reported in exploration holes from a mine in the Guerrero Gold Belt. In Sonora the exploration plan for the year was released by one of the major players in the state. ON MINING, a mine in Sinaloa produced almost 10 K Oz Au during December, as it takes advantage of mining the high grade part of the deposit. Three companies presented fourth quarter 2016 reports, one operating in Sonora and Chihuahua, other with operations in Sonora and one more mining in Chihuahua. ON FINANCING, no financing reported. ON DEALS AND CORPORATE ISSUES, two companies agreed to an exploration JV for gold projects in Sonora.

ON MEXICO ISSUES

  • Silver Production. For sixth year on a row Mexico was the top producer of silver in the world in 2015, followed by China, and Peru. Production was 3.3% higher than in the previous year, reaching 191.5 M Oz Ag. Latin America produces 53% of the silver in the world, followed by Asia with 20%. In 2015 the average price for the metal was $15.70 per ounce, with a peak of $18.20 and a low of $13.70.

ON EXPLORATION

  • Riverside Resources Inc. provided an overview of company goals for 2017, which include drill results from the Thor copper project and field exploration results from the Glor project, both in Sonora, and funded by partners Antofagasta and Centerra Gold  respectively. A drilling program is anticipated to begin at Glor in 2017, and a $350 K exploration program is to be spent in the Clemente project in Sonora, the latter funded by partner Silver Viper Minerals Corp. The company is looking for partners for its Peñoles (Durango), Tajitos (Sonora), Ariel (Sonora) and La Silla (Sinaloa). Riverside enters 2017 with approximately CAD$3.5 M, in cash and less than 37.5 M shares outstanding.
  • Torex Gold Resources Inc. released high-grade results from drilling under El Limon sill at its El Limon-Guajes mine in Guerrero. Drill intercepts include 3.4 m @ 317.8 g/t Au, 51 g/t Ag, 1.6% Cu; 2.4 m @ 230.7 g/t Au; 9.6 m @ 19.6 g/t Au, 0.3% Cu; 13.3 m @ 22.6 g/t Au, 37 g/t Ag, 3.1% Cu; 4.3 m @ 83.3 g/t Au, 18 g/t Ag, 1.1% Cu; 5.6 m @ 25.5 g/t Au, 36 g/t Ag, 3.7% Cu. These results open the possibility of finding additional “sill type” targets in areas close to the processing plant. From September to December 2016, 7,727 m were drilled in 34 holes targeting the zone, with results for 23 of them; the system remains open down-dip and up-dip, laying between 30 and 270 m from the surface. Skarn-hosted gold mineralization is developed along the contacts of the intrusive rocks and the enclosing carbonate-rich sedimentary rocks. “At the El Limon Sill area, several skarn zones were 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”…. “Mineralization is hosted in pyroxene-garnet marble related exoskarn, in granodiorite related endoskarn and locally, in narrow lenses of massive sulfides, that have been affected by a late stage retrograde alteration, characterized by amphiboles, chlorite, calcite ± quartz ± epidote. Gold occurs in low and high sulfidized skarns, while silver and copper mineralization is primarily determined by the degree of sulfidation of the host skarn.”
  • Alamos Gold Inc. released exploration data on its Sonora projects during the last quarter. At La Yaqui, new drilling intercepts include 13 m @ 6.9 g/t Au; 63 m @ 3.2 g/t Au; 32.6 m @ 6.3 g/t Au; 66 m @ 2.5 g/t Au; 21.9 m @ 6.3 g/t Au; 45.6 m @ 2.6 g/t Au and 41.4 m @ 2.3 g/t Au. At La Yaqui drilling was aiming at resource definition, while at Cerro Pelon systematic exploration was commenced over a larger area, looking for ore vectors, focusing on the western zone. The exploration budget includes $6 M for La Yaqui, $4 M at Cerro Pelon, $2 M at Los Bajios and $5 M at El Refugio and other prospects on the Mulatos District.

ON MINING

  • Marlin Gold Mining Ltd. produced 354 Oz Au per day during December 2016, having crushed 110,943 tonnes of ore @ 5.17 g/t Au (18,431 Oz Au stacked on the heap) to produce 9,924 Oz Au. Gold recovery is estimated to be around 75%, and the company expects the total cost per ounce to be below $250 for December.
  • GoGold Resources Inc. presented production results for the quarter ended on December 31st, 2016. Production was 406.9 K AgEq Oz, which represents an 122% increase over the previous quarter. About 50% of the production comes from the Santa Gertrudis gold mine high grade zone in Sonora.
  • Alamos Gold Inc. reported 2016 fourth quarter results, producing 105,676 K Oz Au, (392 K Oz Au for the year) at about $1,000 per ounce all-in sustaining costs. Of these, 44,900 Oz Au and 16,114 Oz Au were produced at Mulatos and El Chanate mines, both in Sonora. For 2017 the company aims to produce 6% more gold than in 2016, and reduce consolidated all-in sustaining cost per ounce to $940, with strong capital and development spending and initial low-cost production from La Yaqui in Sonora. The global exploration budget for the year 2017 amounts to $24 M. Mulatos is to produce 150 – 160 K Oz Au, with open pit grades of 0.79 to 0.88 g/t Au, milled grades of 8 g/t Au and expected recoveries of 73%; La Yaqui is to begin production on the second half of 2017, and El Chanate is to produce 50 – 60 K Oz Au, down from 68 K Oz on 2016, with lower grades and throughput rates, at an average grade of 0.53 g/t Au. The waste to ore ratio is expected to be 3.4: 1 during the year in this property with a short remaining mine life.
  • Coeur Mining Inc. announced fourth quarter 2016 production of 3.9 M Oz Ag and 102.5 K Oz Au, and full-year production of 14.8 M Oz Ag and 358.17 K Oz Au. At Palmarejo in Chihuahua, 293.7 K tonnes of ore were mined at an average grade of 155 g/t Ag and 2.8 g/t Au. 287.6 K tonnes were processed, with recovery rates of 89.1% and 90.4% for silver and gold respectively. Total production for the year was 4.442 M Oz Ag and 73,913 Oz Au. “Ramp-up of higher-grade, higher-margin underground operations advancing on schedule with Guadalupe and Independencia now mining at approximately 2,400 and 1,000 tons per day, respectively”; targeting combined mining rate of 4,500 tons per day by year-end 2017 and total production of 6.5 – 7.0 M Oz Ag and 110 – 120 K Oz Au.

ON FINANCING

  • No Financing to report

ON DEALS AND CORPORATE ISSUES

  • Millrock Resources Inc. and Centerra Gold Inc. entered into a strategic alliance, under which Millrock will execute generative exploration and evaluate prospective properties to develop gold exploration projects. Centerra will provide funding for at least $250 K this year.

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

On the picture below, light rain south of La Rumorosa, Baja California.

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Highlights on the Third Week of December, 2016. Mineral Exploration in Mexico

/ Gambusino Prospector / Leave a comment

During the third week of December at least sixteen press releases were announced by companies working in Mexico. ON EXPLORATION, in Chihuahua, drilling continues at one property, while prospecting advances in one other. In Zacatecas one property sees early geological reconnaissance while other sees the commencement of a drilling campaign. An ongoing drilling campaign on a mine in Durango locates long overlooked mineralization.  ON MINING, equipment is being installed at a heap leach operation in Sonora. ON FINANCING, one company entered into an at-the market-offering looking to raise up to US$5 M. ON RESOURCES, a maiden high-grade resource was announced for a Pb-Zn property in Chihuahua. ON DEALS AND CORPORATE ISSUES, a back-in notice was delivered to a company with a silver discovery in Sonora; the first payment on the sale of a property on the same state has been forwarded. An extension into a tailings project in Zacatecas was signed and a lithium player is in advanced discussions with a “significant” Asian offtake partner.

ON EXPLORATION

  • Kootenay Silver Inc. has completed seven holes along the Soledad structure (results pending) at its La Cigarra property in Chihuahua. Surface exploration has identified a gold target in a contact skarn zone up to 1,000 m in length, which is also supported by a gold in soils anomaly.
  • Silver Spruce Resources Inc. has done field reconnaissance on its Encino de Oro property in Chihuahua, confirming that an outcrop of strongly silicified rhyolitic tuff contains gold grades of 5 and 8 g/t Au in two samples covering over 3 m in width. Mineralization and argillic alteration is said to cover about 3 km2, and being open on all sides.
  • Arian Silver Corp. has defined two major vein systems on its Los Campos property in Zacatecas. Old workings on Los Campos vein trace the structure for 3.3 km, and to at least 100 m of depth.
  • Canasil Resources Inc. has started drilling at its La Esperanza project in Zacatecas. Past drilling along 250 m of strike of the vein to 200 m depth has returned consistent high grade Ag-Pb-Zn intercepts, averaging 4.2 m true width (TW) @ 330 g/t Ag, 0.93% Zn and 1.57% Pb on the main vein. The Hanging Wall vein was intercepted by 5 drill holes, averaging 1.53 m TW @ 324 g/t Ag, 1.37% Zn, 1.8% Pb, and three later drill holes on a blind section 100 m to the NW returned 3.24 m @ 278 g/t Ag, 5.2% Zn, 2.22% Pb.
  • Avino Silver & Gold Mines Ltd. announced drilling results from its ongoing campaign in its Avino property in Durango. Results for eight of eleven drill holes have been received. The drilling is targeting an overlooked portion of the Avino vein. The Avino vein has been followed for more than 1,300 m, and more than 600 m down dip; Steeply dipping,  high  grade  zones  within  the  vein  and  stockwork  zones are frequently found throughout the system. The new zone is 240 m long for 130 m in depth, with an average thickness of 15 m. The Avino vein remains open at depth. Selected intercepts on the Hanging wall breccia, Avino vein hanging wall zone, Avino vein, Avino vein footwall, Avino vein stockwork zone and footwall breccia include 4.8 m @ 1.27 g/t Au, 105 g/t Ag, 0.16% Cu; 18.42 m @ 1.12 g/t Au, 38 g/t Ag; 21.8 m @ 0.72 g/t Au, 40 g/t Ag, 0.15% Cu; 9.5 m @ 1.82 g/t Au, 119 g/t Ag, 0.5% Cu; 44.3 m @ 2.08 g/t Au, 29 g/t Ag; 5.95 m @ 2.29 g/t Au, 232 g/t Ag, 0.3% Cu; 37.3 m @ 1.46 g/t Au, 55 g/t Ag, 0.26% Cu; 15.85 m @ 1.19 g/t Au, 37 g/t Ag, 0.28% Cu.

ON MINING

Mexus Gold US. along with JV partner Mar Mar is installing a Merril Crowe plant on its Santa Elena mine in Sonora (not to mistake with First Majestic’s Santa Elena mine, also in Sonora). Ore is being crushed and staked on the pads, and a new crusher is about to be installed.

ON FINANCING

  • Golden Minerals Co. entered into an at-the market-offering agreement to sell stock for up to an aggregate sales price of US$5 M.

ON RESOURCES

  • Consolidated Zinc Ltd. reported last week a maiden resource for its Plomosas mine in Chihuahua. An Indicated and inferred resource of 568 K tonnes @ 16.9% combined Zn + Pb and 28.4 g/t Ag was defined, with 96 K tonnes of contained Zn + Pb. The resource is on the Level 7 and Tres Amigos zones, remains open and is limited only by the extent of drilling.

ON DEALS AND CORPORATE ISSUES

  • Azure Minerals has received notice that Teck Resources Ltd (through a subsidiary) will exercise its back-in right on the Alacrán project in Sonora, which hosts the Mesa de Plata silver discovery. Teck can re-acquire a 51% interest by sole funding US$10 Min expenditures in the project over four years, and making cash payments of $0.5 M to Azure. Teck may further its interest to 65% by funding a further US$5 M in expenditures in the project and making cash payments of an additional US$1.5 M to Azure.
  • Arian Silver Corp. has obtained from Tierra Nuevo Mining Ltd. an extension on the exclusivity agreement over the Nochebuena gold and silver tailings project in Zacatecas. The period of exclusivity has now been extended at no cost until February 25th2017, while the results of metallurgical test work are awaited.
  • Bacanora Mineral Ltd. is in advanced discussions with a “significant Asian offtake partner for the supply of battery grade lithium carbonate…” The ongoing feasibility study is expected to be completed on the summer of 2017.
  • Sonoro Metals Corp. closed the sale of La Chipriona property in Sonora to Agnico Eagle Mines Ltd. The company received the first $650 K installment, according with the agreement signed last week.

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, alunite patch in strongly silicified rhyolitic flow. Zacatecas.

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Highlights on the Second Week of December, 2016. Mineral Exploration in Mexico

/ Gambusino Prospector / Leave a comment

During the second week of December at least twenty one press releases were announced by companies working in Mexico, including two quarterly reports. ON EXPLORATION, in Sonora, mine processing equipment continues to arrive to a property nearing production; needed paper work has been received for another exploration property and drilling results provided for one more, while one more property has seen the delineation of target zones. In Mexico State and Jalisco high-grade drilling results were released for two properties.  In Durango initial metallurgical testing commences to unravel the intricacies of a new silver discovery, whereas other property sells the concentrates from the first metallurgical test. One more company withdrew from the agreement to acquire a property in the same state.  In Veracruz, drilling results released for a copper gold porphyry system, and in Baja California Sur a company was denied the environmental permit. In Chihuahua metallurgical testing continues in a property on track to publish a PEA.  ON MINING, a PEA is to be completed on a Durango property; while a copper mine in Sonora has ceased mining activities. Two companies with operations in Sonora, Durango and Queretaro presented quarterly reports. ON FINANCING, an over-allotment option accrued C$1.5 M to a company. ON DEALS AND CORPORATE ISSUES, two companies signed a deal on a property in Sonora, while one other is to buy the shares of a company holding two properties in Sonora.

ON EXPLORATION

  • Mexus Gold US and partner Mar Mar announced that a Merril Crowe plant and a 42 inch jaw crusher will arrive during December to its Santa Elena mine in Sonora (not to mistake with First Majestic’s Santa Elena mine, also in Sonora).
  • Impact Silver Corp. announced more high-grade results from the Deeps zone on its San Ramon mine in Mexico State. These true width (TW) intercepts are deeper than previous drillholes, and include 7.09 m @ 87 g/t Ag; 2.20 m @ 194 g/t Ag, 0.1 g/t Au, 1.1% Zn; 0.69 m @ 562 g/t Ag, 0.3 g/t Au, 0.7% Pb, 2% Zn; 0.22 m @ 1,475 g/t Ag, 0.9 g/t Au, 2.2% Pb, 6.2% Zn; 4.93 m @ 354 g/t Ag, 0.2 g/t Au, 0.2% Pb, 0.5% Zn; 3.10 m @434 g/t Ag, 0.19 g/t Au, 0.7% Pb, 1.7% Zn. The zone is still open down dip, up dip and to the north.
  • Endeavour Silver Corp. released results on two drill exploration programs. At El Compas in Zacatecas, drilling the Ana Camila vein, a splay of El Orito vein 550 m SE of El Orito, intercepted 1.81 m (TW) @ 26.5 g/t Au, 72 g/t Ag (includes 0.24 m @ 132 g/t Au, 283 g/t Ag); 2.85 m @ 12.86 g/t Au, 45 g/t Ag; 1.69 m @ 7.7 g/t Au, 29 g/t Ag. At Terronera in Jalisco, drill intercepts at La Luz vein, 2,200 m NE from La Terronera vein include 1.14 m (TW) @ 58.6 g/t Au, 408 g/t Ag (including 0.26 m @ 238 g/t Au, 1,365 g/t Ag); 1.17 m @ 4 g/t Au, 194 g/t Ag; 1.01 m @ 2.6 g/t Au, 61 g/t Ag; 1.43 m @ 3.1 g/t Au, 202 g/t Ag; 1.57 m @ 5.2 g/t Au, 86 g/t Ag; 3.34 m @ 2.3 g/t Au, 140 g/t Ag. At the Terronera vein, new drill intercepts include 2.03 m @ 1.9 g/t Au, 127 g/t Ag; 6.74 m @ 5.0 g/t Au, 226 g/t Ag. Updated resource estimates are expected for March 2017 for both properties.
  • San Marco Resources Inc. has received all necessary paperwork for exploration at its Chunibas property in Sonora, including drilling permits. Assay results are pending for an 850 samples soil program, which will aid in the definition of drill targets. Mineralized structures have been identified up to one kilometer from the main historic mine workings.
  • Oceanus Resources Corp. reported drilling results from its El Tigre property in Sonora. Intercepts include 110 m @ 0.6 g/t Au, 14.5 g/t Ag; 20.4 m @ 0.4 g/t Au, 212 g/t Ag; 115.9 m @ 0.43 g/t Au, 11.4 g/t Ag. An orientation geophysical survey is to be carried out during December by Geofisica TMC S.A. de C.V., with three traverse lines totaling 6 line Km of IP.
  • Minaurum Gold Inc. identified three targets at its La Quintera project in Sonora. The La Quintera, Gap and Promontorio mine targets. The La Quintera vein was mined for 800 m along strike and 500 m in depth, with records showing the operation ceased while still in good grade mineralization. A new parallel vein has been discovered, this and the down dip extension of the La Quintera vein constitute the target. The Gap target area is a 500 m long zone between the La Quintera and Promontorio veins, with semi-continuous quartz veins over more than 300 m of strike. At the Promontorio mine target, the vein was developed over 800 m of strike length and to 200 m depth. Focus is on the down dip extension of the vein, as well as potential parallel mineralized structures. Surface and underground sample results show the three systems to have strong silver values (50 – 1,750 g/t Ag) and low gold (nil – 1.9 g/t Au) contents, while copper, lead and zinc usually range from 0.1% to 3.0%.
  • Orex Minerals Inc. received preliminary metallurgical results for samples from the Main Zone of the Boleras silver deposit at its Sandra Escobar project in Durango. Results shows that recovery is grade dependent, with a low of 6% recovery for a 54 g/t head grade, to 95% recovery for a 1,912 g/t Ag head grade, for HCL pre-treatment (similar results for SO2 pre-treatment). “Initial interpretation of the results suggests that there are three different hosts of silver; 1) a small amount of direct cyanide leachable silver (native silver and silver halides, cerargyrite and bromargyrite), 2) a varying amount of silver-bearing minerals leachable under pre-treatment conditions (argentiferous manganese and iron oxides, pyrolusite and aurorite), and a portion within silicate minerals.”
  • Almadex Minerals Ltd. reported results for two holes and partial results for one hole at the El Norte zone in its El Cobre property in Veracruz. Intercepts include 497 m @ 0.33 g/t Au, 0.16% Cu (including 268 m @ 0.46 g/t Au, 0.2% Cu) and 30 m @ 0.22 g/t Au, 0.1% Cu. Almadex has been focusing on identifying controls of mineralisation and a vector to a porphyry core.
  • Telson Resources Inc. closed the sale of the first lead and zinc concentrates from a 3,500 tonnes bulk sample from the El Creston zone at its Tahuehueto project in Durango.
  • Argonaut Gold Inc. was denied the environmental permit by SEMERNAT for its San Antonio project in Baja California Sur. SEMERNAT required additional information “regarding potential identification, description and impacts to the environment; additional information on the construction, operation and closure plans for the project; and additional information regarding the impact on the local aquifer.” The Company believes that this information is readily available and it has the ability to respond swiftly…. The Company is evaluating alternatives including legal options, the possible re-submittal of a revised MIA and continuing dialogue.”
  • Golden Minerals Co. continues to perform metallurgical testing at Santa Maria, Chihuahua, prior to complete and updated resource estimate and issue a preliminary economic assessment (PEA) in the first quarter of 2017. A resource estimate is also in preparation for the first quarter of 2017 for the Rodeo project in Durango.
  • Blackrock Gold Corp. has withdrawn from a LOI to acquire the El Potrero property in Durango.

ON MINING

  • Minera Alamos Inc. has engaged CSA Global Canada Geosciences Ltd. to undertake a preliminary economic assessment (PEA) on its La Fortuna gold project in Durango.
  • Starcore International Mines Ltd. filed the results for its second quarter 2017, ended in October 2016. Production was 4,351 Oz Au and 20.5 K Oz Ag at its San Martin mine in Queretaro, from ore grading 2 g/t Au and 19.4 g/t Ag, at cash cost US$844 per AuEq Oz and all-in sustaining cost of US$1,006 per AuEq Oz. Cash and cash equivalents were $8 M at the end of the period.
  • Red Tiger Mining Inc. announced that it has ceased mining operations at its Luz del Cobre copper mine in Sonora The mine was experiencing lower than planned recoveries, and a recent infill drill program showed continued copper mineralization, but lower acid soluble copper than needed to sustain operations. The solvent extraction and electrowining plant continues to operate from existing copper inventory on the leach pad.
  • GoGold Resources Inc. released financial results for the quarter ending on September 30, 2016, producing 69.3 K Oz Ag and 1,260 Oz Au, with cash cost per AgEq Oz $7.50 and all-in sustaining cost $21.24. Agglomeration has been optimized and an oxygen plant was commissioned at its Parral tailings facility to increase recovery speed.

ON FINANCING

  • SilverCrest Metals Inc. sold an over-allotment option on its last week offering, for gross proceeds of C$1.5 M (Las Chispas, Sonora).

ON DEALS AND CORPORATE ISSUES

  • Sonoro Metals Corp. has entered into an agreement to sell its Chipriona project in Sonora to Agnico Eagle Mines Ltd. for $4 M plus 1% NSR. The payment is to go in four tranches; the first $650 K will be followed by three additional sequential installments of $650 K, $800 K and $1.9 M. The NSR can be bought for $1.5 M. The Chipriona project lies just to the north of Agnico’s La India mine.
  • Colibri Resources Corp. has signed a letter of intent (LOI) to acquire all of the issued and outstanding shares of Canadian Gold Resources Ltd. from Ontop Capital Ltd. A total of $4 M of Colibri shares have to be issued to Canadian Gold. The Pilar and Sun properties in Sonora are owned by Canadian Gold.

 

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, Hacienda de San Mateo, Valparaíso, Zacatecas.

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Highlights on the Fifth Week of November 2016, Mineral Exploration in Mexico

/ Gambusino Prospector / Leave a comment

During the fifth week of November at least eighteen press releases were announced by companies working in Mexico, including two third quarter reports. ON EXPLORATION, in Chihuahua one company obtained a long extension on its drill permit, while other signed a LOI to acquire ground close to its main property. In Puebla, high grade drilling results continue to pour during the feasibility study, while in Zacatecas and San Luis Potosi large concession are being split to reduce investment obligations. ON MINING, two companies, one with mines in Sonora and the other with mines in San Luis Potosi and Zacatecas presented third quarter financial and operational results. One company is to re-start iron mining in Sonora, and one other company will temporarily shut processing operations at its mine Durango, while mining continues. ON FINANCING, One company closed its bought deal offering for gross proceeds of CAD$20 M; four companies completed bought deals and non-brokered private deals for US$ 12.46 M; and one other entered into a debt settlement agreement worth up to $0.24 M. ON RESOURCES, two amended technical reports were filed at SEDAR, from properties in Sonora and Guerrero. ON DEALS AND CORPORATE ISSUES, a lithium exploration company, created a subsidiary to focus on recycling. A project was optioned and two property options were terminated in Sonora

ON EXPLORATION

  • Mammoth Resources Corp. was granted a four year extension on its permit to drill from up to 16 drill pad locations at its Tenoriba property in Chihuahua. Mammoth is negotiating with a drill contractor to pay part of a future drill program with cash, and part with Mammoth shares.
  • Almaden Minerals Ltd. released new high grade mineralized drill intercepts within and outside the amended PEA pit at its Tuligtic project (Ixtaca) in Puebla. Results include 5.5 m @ 27.3 g/t Au, 66 g/t Ag; 9.6 m @ 2 g/t Au, 139 g/t Ag; 29.5 m @ 1.0 g/t Au, 39 g/t Ag; 25.6 m @ 0.7 g/t Au, 37 g/t Ag; 15.8 m @ 4.3 g/t Au, 34 g/t Ag; 22 m @ 1.9 g/t Au, 34 g/t Ag; 16.7 m @ 2.2 g/t Au, 161 g/t Ag; 20.3 m @ 2.2 g/t Au, 118 g/t Ag.
  • Alset Energy Corp. is splitting its largest concession, Sutti 19 (8,776 ha.), into 18 smaller concessions, action that will result in a reduction of the annual work requirements. The company intends to begin drilling on the first quarter of 2017.
  • Silver Spruce Resources Inc. signed a binding letter of intent (LOI) to explore a submittal prospect in the Chinipas district in Chihuahua. The terms include the payment of a total $50 K on installments over four years and a 3% NSR. The concession is over 300 ha in size, close to its Encino de Plata property

ON MINING

  • Red Tiger Mining Inc. reported its financial and operating results for the third quarter 2016. 96.6 K tonnes of ore were mined, 477.8 K tonnes of waste moved (Waste-Ore ratio: 4.9), at an average grade of 1.22% Cu. 101.8 K tonnes were crushed and staked, @ 1.49% Cu, producing 626 tonnes of copper, at a cash cost of $1.89 per pound (Luz del Cobre, Sonora).
  • Arcelor Mittal is to re-start operations at it El Volcan iron mine in Sonora.
  • Santacruz Silver Mining Ltd. presented its financial and operational results for the third quarter of 2016; when 24.7 K tonnes were milled, producing 164.9 K Oz AgEq, at cash cost $12.2 per AgEq Oz and all-in sustaining cost $15.88. The Veta Grande milling facility in Zacatecas is operating at 400 tpd, with mineralized material from the Garica and Guadalupana mines. The company expects to increase production to 1,500 tpd with the addition of another ball mill and crushing plant. The Cinco Estrellas mine supplied 5 K tonnes of ore @ 3 g/t Au, 103 g/t Ag to the El Rosario mill in San Luis Potosi.
  • Great Panther Silver Ltd. is to stop work at its processing facilities in the Topia mine in Durango for three months. During that time a plant upgrade and transition to a new tailings storage facility will be implemented, and mining will continue with ore stockpiled for later processing.

ON FINANCING

  • Avino Silver & Gold Mines Ltd. closed a bought deal financing for gross proceeds of US$11.18 M (Avino and San Gonzalo, Durango).
  • Aura Silver Resources Inc. announced a non-brokered private placement offering to raise gross proceeds of up to $500 K (Taviche, Oaxaca).
  • Timmins Gold Corp. confirms the closing of its previously announced bought deal offering for gross proceeds of C$20 M (San Francisco, Sonora; Ana Paula, Guerrero).
  • Cyprium Mining Corp. entered into debt settlement agreements with various creditors for up to $248.7 K of indebtedness by issuing shares (El Potosi, Chihuahua).
  • Source Exploration Corp. closed a tranche of its previously announced non-brokered private financing, raising $778.8 K (Las Minas, Veracruz).

ON RESOURCES

  • Timmins Gold Corp. filed on SEDAR amended technical reports for its projects San Francisco, in Sonora, and Ana Paula, in Guerrero.

ON DEALS AND CORPORATE ISSUES

  • Alix Resources Corp. has formed a new subsidiary, Upcycle Metals Corp. with the aim of forming a global recycling operation to retrieve battery metals and materials used in Lithium-ion batteries.
  • Almadex Mineral Ltd. signed a definitive agreement to option all of its interest at Los Venados project (Sonora) to Wolverine Minerals Corp. The deal involves CAD$30 K on signature, up to 2 M Wolverine shares and a 2% NSR. A minimum of 1,000 m have to be drilled by the second anniversary, with a minimum US$500 K spent by the third anniversary. The 1,500 hectare claim is adjoining the Mulatos and La India mines in Sonora.
  • First Mining Finance Corp. and Exploraciones Mineras Peñoles, S.A. de C.V. have terminated the option agreement under which Peñoles had the right to earn an interest on the Puertecitos and Los Tamales properties in Sonora.

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

On the picture below, chalcedonic quartz vein, in otherwise covered terrain, Zacatecas Altiplano. Geologist Miguel Heredia on the outcrop.

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