Estado de México

The Mining and Exploration News in Mexico: Highlights on the Fifth Week of May 2024

/ Gambusino Prospector / Leave a comment

By Jorge Cirett

During the 22nd week of the year (May 27th to June 2nd,2024), companies working in Mexico posted at least 29 press releases. One company informed of drilling on its property and six companies released financial results for Q1 2024. Two companies announced the opening/closing of financing rounds for C$10.28 M and one filed a prospectus to raise up to US$250 M. Two companies informed on drilling results from their advanced projects, one on the approval of key mining permits, another on an updated technical report and one more a clarification on a previous news release. Two companies reported on held AGM’s, another one on the date for a merger-voting AGM, one on plans for a copper spinout, one on an annual report and one more on a board member retirement. ON MEXICO ISSUES, presidential polls in Mexico are to define a centralized power government or a checks and balances political system. The mining industry will be strongly affected if the officialism candidate wins. Nearshoring and EV’s present an opportunity to copper producing Sonora. The New Mining Law has stalled the investment of more than US$4.5 billion in the country. ON EXPLORATION, In Sonora, Tocvan Ventures informed on drilling progress at Pilar. ON MINING, Impact Silver, Orogen Royalties, Bear Creek Mining, Minera Alamos, Santacruz Silver Mining and Luca Mining presented financial/operational results for Q1 2024. ON FINANCING, Impact Silver increased again its non-brokered private placement to C$10.2 M, Sailfish and Alamos Gold declared quarterly dividends. Inomin raised $80 K on the first tranche of financing. Mag Silver filed the base shelf prospectus to raise up to C$250 M in 25 months. ON RESOURCES AND DEVELOPMENT, Silver Storm and Prime Minig released drilling results from La Parrilla, in Durango, and Los Reyes, in Sinaloa, respectively. ON DEALS AND CORPORATE ISSUES, Argonaut Gold is to held a special meeting of shareholders to vote on the merger with Alamos Gold. First Majestic Silver released its 2023 annual report. Avino Silver and Guanajuato Silver released AGMS’s results. Minera Alamos informed on its purpose to create a copper developer/producer spinout in Central Sonora. Capstone Copper announced the retirement of Bob Gallagher. ON SOCIAL RESPONSIBILITY, First Majestic Silver and Fortuna Silver Mines published their 2023 ESG reports.

ON MEXICO ISSUES

  • This Sunday June 2nd presidential polls are to be held in Mexico, same that will define the bearing the country is to follow in the next six years and probably beyond that. At stake are the centralized government system with unrestricted power to the presidency sought by the current incumbent Andres Manuel Lopez Obrador, and the checks and balances system between the different government branches (executive, legislative and judicial) sought by the coalition opposition parties. Besides the obvious influence on the economy, if the officialism party´s Claudia Sheinbaum candidate wins, expect a tight grip on the mining industry from the open supporter of socialist economies, like Cuba and Venezuela.
  • Nearshoring and electrical vehicles present an opportunity for copper producing Sonora, according to David Ramos Félix, president of the local AIMMGM chapter in the State that produces more than 70% of the red metal in the country
  • Restrictions brought by the new Mining Law approved by Fast Track procedures in May of 2023 have delayed the investment of more than US$4.5 billion, according to Karen Flores, president of the Cámara Minera de México (CAMIMEX). The freezing of at least 220 environmental permits is hindering the investments that could generate employment to close to 50 thousand families, with salaries in the metallic mining sector that are 85% above the national average.

ON EXPLORATION

  • Tocvan Ventures Corp. informed 2,200 m have been completed on the reverse circulation (RC) drill program at its Pilar property in Sonora. Results for nine holes have been released so far.

ON MINING

  • Impact Silver Corp. announced financial and operating results for Q1 2024. The company reported revenue of $4.3 M from the Guadalupe mine in Estado de Mexico and $1 M from the start-up operations at Plomosas in Chihuahua. There was a net loss during the period of $3.1 M, primarily on upgrading facilities at the Plomosas mine. At the Zacualpan/Guadalupe mine in Estado de Mexico 31.7 K tonnes were milled @ 161 gpt AgEq. The Plomosas mine continued gradual start-up of operations, processing 3.6 K tonnes @ 15.3% Zn. The mine is expected to reach design capacity of 200 tpd later in 2024.
  • Orogen Royalties Inc. reported Q1 results, including $1.48 M in royalty revenue generated from First Majestic’s Ermitaño mine in Sonora, representing 508 Oz AuEq. “During the current quarter, the mill processed 224,394 tonnes of ore compared to 233,601 tonnes processed last quarter. Average silver and gold head grades during the current quarter were 72 grams per tonne (“g/t”) and 3.16 g/t, respectively, compared to average silver and gold head grades of 106 g/t and 3.88 g/t, respectively, of the previous quarter. Silver and gold recoveries averaged 69% and 95%, respectively, compared to recoveries of 73% and 96% from the previous quarter”.
  • Bear Creek Mining Corp. reported interim consolidated financial results for Q1 2024. During the period, 106.4 K tonnes were mined at the Mercedes mine in Sonora, averaging 3.83 gpt Au, 109.3 K tonnes milled averaging 3.69 gpt Au, recovering 94% Au to produce 12,228 Oz Au, 44 K Oz Ag at cash cost $1,183 per Oz Au and an AISC of $1,588 per Oz Au. Total revenue in the period was $27.5 K M. “Updates to estimates of mineral reserves and mineral resources are tentatively expected before year end, pending completion of the first phase of the exploration and infill drilling campaign”.
  • Minera Alamos Inc. provided select financial highlights from its Q1 2024 and an operational update for the first five months of the year. Updated plans call for 20 K Oz Au averaging 0.63 gpt Au and mined at a 1.6:1 ratio and staked over a 12-month period. Further stockpiled 4.5 K Oz Au @ 1.0 gpt Au are to be processed during the same period. Mining and stacking operations are expected to commence in June and continue through H2 2024 and H1 2025. Total gold recovered and sold during the first quarter was 907 Oz Au, with inventory on the leach pad of 5,383 Oz Au. Cash and cash equivalents at the end of the period was $11.8 M, with a positive working capital of $18.2 M.
  • Santacruz Silver Mining Ltd. reported its financial and operating results for the first quarter 2024, including figures from its operations in Mexico. At Zimapan, in Hidalgo, 205.4 K tonnes were processed @ 82 gpt Ag, 0.29% Cu, 0.83% Pb, 2.29% Zn, recovering 74% Ag, 43% Cu, 79% Pb, 77% Zn, to produce 399.9 K Oz Ag, 256 tonnes Cu, 1,352 tonnes Pb, 3,643 tonnes Zn. During the period the company had US$52.6 M in revenue, 463 K in gross profit, cash and cash equivalents of US$4 M and working capital of US$7.1 M.
  • Luca Mining Corp. announced financial results for Q1 2024. During the period the company produced 4,297 Oz Au, 207.5 K Oz Ag, 791 tonnes Cu, 661 tonnes Pb, 3,068 tonnes Zn. The company achieved its first positive operating earnings with C$4.8 M in operating income and C$7.3 M in net income. Cash flow was C$4 M, with an AISC of US$1,325 and US$1,690 per Oz AuEq, expected to decrease at Tahuehueto and Campo Morado respectively, as ramp up production continues with the completion of construction at the former and completion of the improvement project at the latter (Tahuehueto, Durango; Campo Morado, Guerrero).

ON FINANCING

  • Impact Silver Corp. is amending and increasing its previously announced non-brokered private placement from C$8.2 M to C$10.2 M (Plomosas, Chihuahua).
  • Sailfish Royalty Corp. declared the second quarterly dividend for 2024, in the amount of US$0.0125 per common share (Gavilanes, Durango).
  • Alamos Gold Inc. declared a quarterly dividend of US$0.025 per common share (Mulatos, Sonora).
  • Inomin Mines Inc. announced the closing of the first tranche of its non-brokered private placement for gross proceeds of $80K (La Gitana, Oaxaca).
  • Mag Silver Corp. obtained receipt for the final short form base shelf prospectus filed with the securities commissions in all Canada and filed a registration statement with the United States Securities and Exchange Commission (SEC). The final shelf prospectus and registration statement will allow the company to offer up to US$250 M in common shares during the 25-month period of validity (Juanicipio, Zacatecas).  

ON RESOURCES AND DEVELOPMENT

  • Silver Storm Mining Ltd. announced further results from 3,039 m in 23 holes of its diamond drill program at La Parrilla mine in Durango. The results are from the Rosario mine, underneath and in proximity to previously mined stopes. The Rosario zone is “characterized by a sulphide-bearing quartz-carbonate vein hosted within a fault zone that extend down dip for 900 m, with a strike length of 2 km and true widths of up to 14 m”. Highlighted core length results comprise 3.84 m @ 73 gpt Ag, 2.2% Pb, 5.4% Zn (including 1.19 m @ 0.15 gpt Au, 123 gpt Ag, 3.7% Pb, 11.3% Zn); 4.83 m @ 0.16 gpt Au, 113 gpt Ag, 0.2% Cu, 1.4% Pb, 0.7% Zn; 5.23 m @ 0.25 gpt Au, 70 gpt Ag, 1.6% Pb, 1.8% Zn; 2.50 m @ 0.64 gpt Au, 68 gpt Ag, 0.6% Pb; 4.54 m @ 176 gpt Ag, 0.2% Pb (including 1.97 m @ 0.09 gpt Au, 176 gpt Ag, 0.2% Pb); 0.35 m @ 842 gpt Ag, 0.94% Cu, 24.8% Pb, 10.1% Zn; 3.91 m @ 0.38 gpt Au, 501 gpt Ag, 1.2% Pb, 1.2% Zn; 3.52 m @ 0.11 gpt Au, 48 gpt Ag, 2.1% Pb, 2.4% Zn; 1.47 m @ 469 gpt Ag, 1.89% Cu, 5.0% Pb, 2.7% Zn; 5.9 m @ 225 gpt Ag, 0.9% Pb, 0.7% Zn; 3.20 m @ 0.47 gpt Au, 111 gpt Ag, 1.5% Pb, 2.0% Zn; 6.25 m @ 532 gpt Ag, 18.1% Pb, 5.4% Zn.
  • Prime Mining Corp. reported expansion drilling results from the Guadalupe East area at Los Reyes project, in Sinaloa. Highlighted true width intercepts comprise 3.5 m @ 2.67 gpt Au, 327 gpt Ag; 1.1 m @ 4.06 gpt Au, 664 gpt Ag; 0.3 m @ 6.88 gpt Au, 5 gpt Ag; 1.5 m @ 2.38 gpt Au, 419 gpt Ag; 1.0 m @ 3.71 gpt Au, 475 gpt Ag; 0.7 m @ 20.50 gpt Au, 2,620 gpt Ag; and core length intervals comprising 2.4 m @ 1.29 gpt Au, 180 gpt Ag (including 1.3 m @ 2.13 gpt Au, 302 gpt Ag). “The target of this drilling at Guadalupe East was high-grade antithetic veins stepping out to the west. Antithetic veins are footwall and hanging wall splays that intersect the main Estaca vein at Guadalupe East”.
  • Sierra Madre Gold and Silver Ltd. announced the approval by SEMARNAT (Environmental Agency) of the modifications to the existing operating permit for the Guitarra mine and mill complex in Estado de Mexico. The permit allows for dry stack tailings deposition at the active tailings facility site, construction of a tailings filter plant, paste backfill using tailings in the underground mine and 58 surface drilling pad locations.
  • Argonaut Gold Inc. filed an updated technical report for the San Agustin property in Durango, which commenced operations in 2017. Reports highlights include gold production of 89 K Oz Au from April 2024 to 2026 at cash cost US$1,702 per Oz Au and a pre-tax and after-tax net present value (5%) of US$30M.
  • Luca Mining Corp. issued a clarification on its May 21, 2024 news release regarding the high-grade gold mineralization over significant widths at the Tahuehueto mine in Durango. “The mineralization occurs in shoots branching off the main Creston vein at Underground Level 23. Creston is one is one of two main structures currently being mined. Regular geological mapping, as part of mining activities, and channel sampling at this level confirmed the presence of breccia ore shoots up to 20 meters wide”. Channel sampling of 494 channel samples on Level 23 average 3.30 gpt Au, 27 gpt Ag, 0.22% Cu, 0.8% Pb, 1.4% Zn,

ON DEALS AND CORPORATE ISSUES

  • Argonaut Gold Inc. has filed its management information circular for its annual general and special meeting of the holders of common shares to be held on June 28, 2024. At the meeting Argonaut Shareholders will be asked to vote on the statutory plan of arrangement under which Argonaut will become a wholly-owned subsidiary of Alamos Gold Inc. (La Colorada, Sonora).
  • First Majestic Silver Corp. released its 2023 Annual report titled “20 Years. The Silver Evolution”. The report covers the company’s “vision and mission, its values, its commitment to achieving its goals, and its 20-year evolution to becoming one of the world’s largest silver producers”.
  • Avino Silver & Gold Mines Ltd. reported voting results from its annual general meeting (AGM) held on May 30. 2024. The company also announced the retirement of Jasman Yee from the board of directors (Avino, Durango).
  • Guanajuato Silver Company Ltd. announced its 2024 annual general meeting (AGM) is to be held on June 28, 2024 (El Cubo, Guanajuato).
  • Minera Alamos Inc. informed its plans to advance the creation of a “separate copper developer/producer focused on low capital intensity copper development projects”. The company considers the combination of Los Verdes and Suaqui Verde projects allow for further consolidation of similar assets in the region.
  • Capstone Copper Corp. announced Mr. Robert Gallagher has retired from the board of the directors (Cozamin, Zacatecas).

ON SOCIAL RESPONSIBILITY

  • First Majestic Silver Corp. released its 2023 Sustainability Report summarizing the company’s environmental, social and governance (ESG). Highlighted in the report are the safety performance, diversity and inclusion, carbon reduction, community involvement, ESG recognition and community investments (San Dimas, Durango).
  • Fortuna Silver Mines Inc. published its sixth annual sustainability report detailing the company’s performance on key environmental, social and governance (ESG) indicators during 2023 (San Jose, Oaxaca).

On the image below: Potassic feldspar alteration on rim of dark veinlet on intrusive rock in HQ core (6.3 cm across) from a project in the Sonoran Desert. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the Third Week of May 2024

/ Gambusino Prospector / Leave a comment

By Jorge Cirett                                             

During the 20th week of the year (May 13th to May 19th,2024), companies working in Mexico posted at least 27 press releases. One company released drilling results in its property, another “the range and grade of the exploration target” and one more a novel geological interpretation for its project. Nine companies released production results for Q1 2024. Seven companies announced the opening/closing of financing rounds for C$19.5 M, one more a prospectus to raise up to US$250 M, and another one the extension of warrants. Two companies informed on a deal to process tailings. ON MEXICO ISSUES, the Mexican mining industry is paralyzed by the lack of a rulebook to enforce the new mining law. ON EXPLORATION, In Sonora, Tocvan Ventures released drilling results from Pilar. In Chihuahua. Mammoth Resources informed on the “range of the quantity and grade of the exploration target” at Tenoriba. In Zacatecas, Zacatecas Silver is using a new geological study for targeting at El Cristo. ON MINING, Sierra Metals, Prime Mining, Gold Royalty, Golden Minerals, SilverCrest Metals, Discovery Silver, Americas Gold and Silver, US Antimony, and Argonaut Gold presented financial/operational results for Q1 2024. ON FINANCING, Impact Silver increased its non-brokered private placement to C$8.2 M, Starcore International Mines arranged a non-brokered private placement for C$500 K. Mag Silver filed a prospectus that will allow the company to offer up to $250 M in shares, Silver Spruce closed a first tranche of its financing for C$300 K, Vortex Metals upward corrected the amount raised on its last financing to C$1.77 M. Mag Silver announced its intention to repurchase up to 10% of its stock. Orex Minerals raised C$337 K on the first tranche of its non-brokered private placement. Oroco Resources is to raise up to C$6 M. Aztec Minerals is to extend the expiry date of some warrants. Silver Viper closed the last tranche of its financing for C$338 K. ON RESOURCES AND DEVELOPMENT, no relevant news. ON DEALS AND CORPORATE ISSUES, Starcore International Mines teamed up with Kappes, Cassiday and Associates on the reprocessing of tailings at El Oro. ON SOCIAL RESPONSIBILITY, Endeavour Silver highlighted progress on its three-year sustainability strategy.

ON MEXICO ISSUES

  • The mining industry in Mexico is paralyzed by the lack of a rulebook to enforce the Mining Law approved last year. The rulebook (reglamento) was supposed to be set in force six months ago, and there is still no date for its publication. Adding to the lack of rules for the industry is the proposal to forbid open pit mining, which would directly affect 60% of mining production.

ON EXPLORATION

  • Tocvan Ventures Corp. announced drill results from its Pilar project in Sonora. Highlighted hole length reverse circulation intervals on one drill hole comprise 76.25 m @ 0.75 gpt Au, 1 gpt Ag (including 56.43 m @ 1.00 gpt Au, 1 gpt Ag, which includes 9.15 m @ 5.25 gpt Au, 3 gpt Ag, which includes 1.52 m @ 26.79 gpt Au, 5 gpt Ag). The results are from a vertical hole testing the down-dip projection of surface mineralization, intersecting several zones of low-grade Au and Ag and one high-grade zone.
  • Zacatecas Silver Corp. completed additional field work at its Zacatecas property, including a detailed petrographic review of the previous diamond drill core at El Cristo. The El Cristo vein system is the NW strike extension of the Veta Grande vein system, with a strike length of over 3 km on the company’s ground, comprising multiple veins within a dilation jog that is up to 650 m wide. The company’s petrographic study confirmed most holes intercepted oxidized vein material, opening exploration for un-leached veins at depth. Drill pad permits to test below the 70 to 110 m depth expected oxidization limits are being sought.
  • Mammoth Resources Corp. informed its geologists identified a target for further exploration. The study proposes the drilling of three areas, Carneritos, Masuparia and Moreno, with potential (“the range of the quantity and grade of the Exploration Target”, not a resource estimate) for over 1.7 M Oz AuEq, including 53.3 M tonnes grading 0.59 gpt AuEq of oxide-mixed and 42.8 M tonnes grading 0.61 gpt AuEq.

ON MINING

  • Sierra Metals Inc. reported first quarter 2024 consolidated financial results. Revenue was 63.14 M for the period, ending with $11.22 M in cash and cash equivalents. Cash costs at the Bolivar mine in Chihuahua was $2.44 per Lb CuEq and an AISC of $3.12 per Lb CuEq. At Bolívar the company has 5.6 M tonnes of reserves, good for three years or mining, and 18.4 M tonnes of resources that can last for 10 years. Production guidance for 2024 is 23.9 to 27.6 M Lb Cu, 650 to 750 K Oz Ag, 8,000 to 9,000 Oz Au.
  • Prime Mining Corp. reported operating and financial results for “the quarter ended March 31, 2023” (probable typo on press release). The company had $27.9 M in cash at the end of the period, with $2.2 M in total liabilities. Prime is targeting 40,000 m of drilling at Los Reyes, in Sinaloa, for 2024, with four rigs currently active on the site.
  • Gold Royalty Corp. filed its operating and financial results for Q1 2024. The company has a 1% NSR from the Cozamin mine production in Zacatecas. “Production from Cozamin in 2024 is anticipated by Capstone to be similar to 2023 at 22,000 to 24,000 tonnes of copper on a 100% basis. Operating costs in 2024 are forecasted by Capstone to be higher than those in 2023 driven by a higher proportion of cut-and-fill mining methods compared to longhole stoping, along with a stronger Mexican peso.
  • Golden Minerals Co. released financial results for Q1 2024. The company restarted Au-Ag production from its Velardeña properties in Durango in December 2023, but stopped mining at the end of February 2024. After the period the company has entered into negotiations for the sale of all its Mexican assets. At the end of the period the company had current assets of $5.3 M, including cash and cash equivalents of $6.5 M, and current liabilities of $6.5 M.  The sale of the Velardeña assets is expected to bring in $5.5 M, and has a $1 M receivable from VAT from the Mexican government.
  • SilverCrest Metals Inc. announced its financial results for Q1 2024. At las Chispas, in Sonora, 4.2 K of underground development were completed. 85.7 K tonnes were mined, 93.4 K tonnes milled at a rate of 1,026 tpd grading 4.97 gpt Au, 479 gpt Ag, recovering 98.6% Au, 98.0% Ag to produce 14,719 Oz Au, 1.41 M Oz Ag (0r 2.58 M Oz AgEq) at cash cost $7.09 per Oz AgEq and AISC of $12.90 per Oz AgEq. The company had revenue of US$63.6 M, and by the end of the period had US$71.1 M in cash and cash equivalents, plus US$20 M in bullion. Since mid 2023 to the end of Q1 2024, 161 holes totaling 34,384 m of infill and expansion drilling were completed.
  • Discovery Silver Corp. announced financial results and an update of operations for Q1 2024. The feasibility study for the Cordero project in Chihuahua was released in February 2024, highlighting the large scale, long life and low-cost production with attractive returns, the investment of US$1.4 billion, over 1,000 jobs during operation and industry leading environmental standards. A land access agreement was reached for the use of 600 hectares adjacent to the project. By the end of the period the company had cash and cash equivalents of US$50.7 M, liabilities for US$11.4 M and working capital of $42.9 M.
  • United States Antimony Corp. reported its first quarter 2024 financial and operational results. Revenue was $2.83 M, gross profit $428 K. “all operational activities in Mexico have ceased, and this subsidiary is now reported as a “Discontinued Operation”. Overhead was substantially reduced, and business brokers are currently being interviewed to handle future disposition of these assets and/or entities” (Juarez, Queretaro).
  • Americas Gold and Silver Corp. reported consolidated financial and operational results for the first quarter of 2024, including information from its Mexican operations. The Cosalá operations in Sinaloa produced 295 K Oz Ag, 2.8 M Lb Pb, 8.0 M Lb Zn. Revenue was $19.5 M for the period.
  • Argonaut Gold Inc. reported financial and operating results for the first quarter 2024. During the quarter Argonaut entered into a definitive agreement with Alamos Gold Inc. for the acquisition by Alamos of all the issued and outstanding shares of Argonaut. Alamos will keep the Magino mine in USA, and the rest of Argonaut’s assets in USA and Mexico will be spin out to a newly created gold company. At La Colorada, in Sonora, 3,985 Oz Au were sold at cash cost $1,851 per Oz Au and an AISC of $1,929 per Oz Au. At San Agustin in Durango, 6,007 Oz Au were sold at cash cost $1,678 and an AISC of $1,731 per Oz Au. At El Castillo in Durango, 2,130 Oz Au were sold at cash cost $1,464 per Oz Au and an AISC of $1,617 per Oz Au.

ON FINANCING

  • Impact Silver Corp. is amending and increasing its previously announced non-brokered private placement from C$6.2 M to C$8.2 M (Plomosas, Chihuahua).
  • Starcore International Mines Ltd. has arranged a non-brokered private placement for gross proceeds of up to C$500 K to conduct metallurgical testing of the carbonaceous ore at the San Martin mine, in Queretaro.
  • Mag Silver Corp. filed a preliminary short form base prospectus with the securities commission in all of the provinces and territories of Canada. A corresponding registration is pending in the United States. Accordingly, the company will be permitted to offer up to US$250 M of common shares during the 25-month period that the prospectus is effective (Juanicipio, Zacatecas, 44% Mag Silver, 56% Fresnillo).
  • Silver Spruce Resources Inc. closed the first tranche of its previously announced private placement for gross proceeds of C$299.7 K (Diamante, Sonora).
  • Vortex Metals Inc. announced a correction regarding the TSV venture Exchange bulletin from May 07,2024 regarding the previously closed private placement on April 25th 2024. The company inadvertently excluded 360 K units subscribed by an investor, as a result the total amount raised in the private placement is C$1.77 M (Riqueza Marina, Oaxaca).
  • Mag Silver Corp. announced the acceptance by the TSX of the company’s notice of intention to make a normal course issuer bid. “Under the NCIB, the Company may purchase for cancellation up to an aggregate of 8,643,374 common shares in the capital of the Company (“Common Shares”), representing approximately 10% of the public float (as defined in the rules and policies of the TSX) of the Common Shares as of May 8, 2024. The Company’s purchases in the United States will be subject to a limit of 5,148,977 Common Shares, being 5% of the public float of the Common Shares as of May 8, 2024” (Juanicipio, Zacatecas, 44% Mag Silver, 56% Fresnillo).
  • Orex Minerals Inc. closed a tranche of a non-brokered private placement financing raising gross proceeds of C$337 K (Coneto, Durango).
  • Oroco Resources Corp. entered into an agreement with Red Cloud Securities Inc. to act as lead agent and sole bookrunner on behalf of a syndicate of in connection with a best efforts, private placement for gross proceeds of C$6 M (Santo Tomás, Sinaloa).
  • Aztec Minerals Corp. will extend the expiry date of certain outstanding purchase warrants. The company issued 11.4 M share purchase warrants on June 2022, entitling the holder to purchase one common share at $0.40 per share until June 6, 2024, with none of the warrants having been exercised to date. The company is seeking the approval of the Exchange to extend the expiry date to December 6, 2025 (Cervantes, Sonora).
  • Silver Viper Minerals Corp. closed the final tranche of its non-brokered private placement financing pursuant to the Listed Issuer Financing Exemption (LIFE). The final tranche comprised 2.6 M units for aggregate gross proceeds of C$263.8 K. In total, the company raised C$2.38 M (La Virginia, Sonora).

ON RESOURCES AND DEVELOPMENT

  • No Relevant News.

ON DEALS AND CORPORATE ISSUES

  • Starcore International Mines Ltd. has joined forces with Kappes, Cassiday and Associates (KCA) to launch an environmental rehabilitation project to clean up mine tailings from the municipality of El Oro, in Estado de Mexico. “The parties have executed a Memorandum of Understanding (“MOU”) to enter into a joint venture whereby KCA would provide its expertise and services for the project aimed at rehabilitating the environment, and Starcore would act as Operator of the joint venture”. KCA will cover the engineering process and Starcore will cover the cost to construct and operate the plant. All proceedings are for Starcore until the capital cost is recovered, and 70/30 Starcore/KCA basis thereafter.
  • Xali Gold Corp. informed that Kappes, Cassiday and Associates (KCA) have teamed up with Starcore International Mines Ltd to put into production Xali’s environmental rehabilitation project to clean up mine tailings at El Oro, Estado de Mexico. “Recent test work by KCA on the El Oro Tailings Project indicates excellent potential for 72% recovery of gold and 80% recovery of silver using a process being introduced to Xali Gold by KCA…… Once production begins on the El Oro Tailings Project, KCA will pay Xali Gold a gross royalty equal to 4% of the sales income received from all gold and silver produced, less any royalties due and payable to others (the Municipality of El Oro), but in no case less than a 3% gross royalty”.

ON SOCIAL RESPONSIBILITY

  • Endeavour Silver Corp. highlighted progress on its three-year sustainability strategy in 2023 sustainability report. Endeavour’s 2022-2024 sustainability strategy is centered in three pillars: People, planet and Business.

On the image below: Deformed intrusive rock cut by a dioritic dike in HQ core (6.3 cm across) from a project in the Sonoran Desert. Picture by Jorge Cirett.

Mexico’s Best Lead and Zinc Intercepts in 2023

/ Gambusino Prospector / Leave a comment

In 2020 the country produced twice as much zinc as lead (1 M tonnes Zn vs 468.5 K tonnes Pb). Results from the drilling of projects in Mexico also reflect the greater abundance of zinc over lead in the ground. Five companies reported results over 100 %*m for zinc, while only one did so for lead.

Pan American Silver’s results from La Colorada Skarn in Zacatecas where higher by an order of magnitude than those from the second on the list for both lead and zinc, with up to 332.4 m @ 4.1% Pb and 430.05 m @ 4.0% Zn.

Most of the projects in the two tables are part of intermediate sulfidation epithermal systems, but it is worth to note that the Colorada Skarn ore bodies are, as the name implies, skarn deposits. Furthermore, La Parrilla, Cordero and Camino Rojo Sulphides contain skarn mineralization, and probably the link to more distal skarn systems is to be established later on a few of the other deposits.

The Mining and Exploration News in Mexico: Highlights on the Third Week of October, 2023

/ gambusinoprospectormexico / Leave a comment

Cu mineralization in a Carbonate Replacement Deposit

By Miguel A Heredia

During the 42nd week of the year (October 16th to October 22nd, 2023), at least 27 press releases were announced by companies working in Mexico, and 1 news published by the media, with eight communicating production results, five informing on exploration results, five reporting resources and developments of their properties, four disclosing deals and corporate issues, three commenting on Mexican issues, two announcing financing issues, and one discussing social issues. ON MEXICO ISSUES, Newmont announced end of strike at its Peñasquito Mine in Zacatecas. Almaden reported on two recent court decisions, both relating to the submission issued by Mexico´s Ministry of Economy to the second district court in Puebla (Ixtaca project, Puebla). Prismo, Endeavour, and Kootenay reported the best drilling intercepts in Mexico on the third week of October, 2023. ON EXPLORATION, In Sonora, Aztec Minerals selected drill contractor and mobilized exploration crews to conduct an upcoming RC drilling program at its Cervantes project, Prismo reported results of the first holes ever drilled at its Los Pavitos project, Tocvan released first pass reconnaissance results from its Pilar expansion area, and Colibri provided an update on its exploration activities at their Pilar, EP, and Diamante projects. In Chihuahua, Kootenay announced results from its ongoing drilling program at its Columba project. ON MINING, Orla reported Q3, 2023 production results from its Camino Rojo project in Zacatecas. Equinox announced that it will present its Q3, 2023 financial and operating results on October 31, 2023 (Los Filos Mine, Guerrero). GoGold reported Q3, 2023 production results from its Parral Tailings project in Chihuahua and provided an update on its Parral Zn circuit. Santacruz reported Q3, 2023 production results from its Zimapan Mine in Hidalgo. Avino reported Q3, 2023 production results from its Avino Mine in Durango. Sierra Metals reported Q3, 2023 production results from their Bolivar and Cusi Mines in Chihuahua. Bear Creek reported Q3, 2023 production results from its Mercedes Mine in Sonora. ON FINANCING Sierra Madre announced the amendment of all 5,123,092 subscription receipts, in order to extend the escrow release conditions and termination (as both terms are defined in the May 31 and Sep 14 News Releases) for an additional 30-day period (La Guitarra Mine Complex, Estado de Mexico State). Bear Creek announced the issuance of promissory note to Equinox (Mercedes Mine, Sonora).  ON RESOURCES AND DEVELOPMENT, Sonoro filed a NI 43-101 technical report for a Preliminary Economic Assessment (PEA) on its Cerro Caliche project in Sonora.  Gold Resource announced preliminary Q3, 2023 production results from its Don David Gold Mine in Oaxaca. Sierra Madre announced that it has engaged Stantec Consulting International LLC to examine tailings deposition options at its La Guitarra Mine Complex in Estado de Mexico State. Endeavour released positive drill results from its ongoing drilling program being conducted at El Curso and Porvenir Dos Areas at its Guanacevi project in Durango. Oroco filed a Preliminary Economic Assessment (PEA) and updated Mineral Resource Estimate (MRE) for the North and South Zones of its Santo Tomas project in Sinaloa. Gatos Silver announced filing of updated technical report on its Cerro Los Gatos Mine, Chihuahua.  ON DEALS AND CORPORATE ISSUES, Goldgroup exercised its option to purchase all of the issued and outstanding common shares of Minera Cerro Esperanza S.A de C.V., which owns the Company’s previously held Cerro Prieto mining concessions, in Sonora. Vortex announced the attendance at the 121 Mining Investment Conference in New York (Riqueza Marina project, Oaxaca). Tocvan completed a definitive agreement with a private owner to acquire 100% interest in 2,172.7 hectares adjacent to Pilar project in Sonora. Silver Viper amended the terms of its option to acquire 100% ownership of three mineral concessions totaling 2,102 hectares at the La Virginia project, Sonora.   ON SOCIAL RESPONSIBILITY, Minera Media Luna, a subsidiary of Torex Gold Resources Inc, renewed the agreement of the Avanzando Juntos scholarship program with 60 young people, 33 of whom are pursuing their high school studies and 27 plus a bachelor’s degree.

ON MEXICO ISSUE

  • Newmont Corporation announced end of strike at its Peñasquito Mine in Zacatecas, and now is focused on a safe return-to-work plan and a quick ramp up of operations while strengthening workforce relationships. On October 13, 2023, Newmont and the Union submitted the Agreement to the Mexican Labor Court, which gave its approval, thus ending the strike. “In 2022, Peñasquito contributed USD $1.9 B in economic value to Mexico, including USD $643M in employee wages and benefits, taxes, and royalty payments to federal, state, and local governments, and investments in community infrastructure and water projects. Minera Peñasquito is the second largest employer in Zacatecas, Mexico with a workforce of more than 5,000 individuals. The mine supports another 28,000 people and their families, in neighboring communities and across the country, who are part of the mine’s local and national supply chain”.
  • Almaden Minerals Ltd., reported on two recent court decisions, both relating to the submission issued by Mexico´s Ministry of Economy to the second district court in Puebla. “As reported on February 22, April 13, and September 14, 2023, Economia made the Submission to the District Court seeking to deny the two mineral title applications which were first made by Almaden in 2002 and 2008. The Submission claims that the applications contain technical faults, despite Economia’s previous statements to the contrary and its acceptance of the mineral title applications and grant of the mineral titles in 2003 and 2009. By alleging technical faults in the mineral title applications, Economia appears to be arbitrarily seeking to deny the grant of the mineral titles and avoid the indigenous consultation ordered by the February 2022 decision of Mexico’s Supreme Court (SCJN). Such consultation would be welcomed by both the Company and surrounding community members. The two court decisions reported today are summarized as follow: The Federal Appeals court (TCC) dismisses all of the appeals filed by the Parties, including those of the  Company and supporting community members, and rules the Submission is compliant with the 2022 decision of the SCJN, since the SCJN decision did not formally prevent Economia from reviewing the technical aspects of the mineral title applications; The TCC ruling also does not address the validity of the Submission and therefore safeguards the Company’s right to challenge the substance and legality of the Submission through the Mexican Federal Administrative Court (TFJA);  As follow-up to the press release of September 14, 2023, the TFJA has now granted a definitive injunction in relation to the Submission, which prevents Economia from releasing the mineral rights covered by Almaden’s mineral title applications to third parties while the trial continues, anticipated to last 18 months”. (Ixtaca project, Puebla).
  • Prismo Metals Inc., Endeavour Silver Corp., and Kootenay Silver Inc., reported the best drilling intercepts in Mexico on the third week of October, 2023. Details are shown in the table below:

ON EXPLORATION

  • Aztec Minerals Corp., selected drill contractor and mobilized exploration crews to conduct an upcoming RC drilling program at its Cervantes project. This RC drilling program is planned to be conducted at Q4, 2023 in two stages and is permitted for a total of 4,200m in 28 holes. Second stage will be designed subject to results of the initial stage RC drilling program.
  • Prismo Metals Inc., reported results of the first holes ever drilled at its Los Pavitos project. It reported that four of the first eight holes at Santa Cruz target encountered high grade gold mineralization. Drilling highlights include hole LP-SC-01 (true widths reported) with 2.34 g/t Au, 15 g/t Ag, 0.08% Cu, 0.2% Pb, and 0.7% Zn over 5.2m, including 7.04 g/t Au, 43 g/t Ag, 0.19% Cu, 0.6% Pb, and 2.3% Zn over 1.4m; hole LP-SC.02 with 0.27 g/t Au, 0.5 g/t Ag, 0.01% Cu, 0% Pb, and 0.01% Zn over 1.2m, plus 5.77 g/t Au, 29 g/t Ag, 0.15% Cu, 0.2% Pb, and 0.4% Zn over 6m, including 10.22 g/t Au, 47 g/t Ag, 0.17% Cu, 0.3% Pb, and 0.6% Zn over 3.3m; hole LP-SC-07 with 1.52 g/t Au, 19 g/t Ag, 0.11% Cu, 0.1% Pb, and 0.06% Zn over 8.3m, including 2.52 g/t Au, 29 g/t Ag, 0.15% Cu, 0.1% Pb, and 0.1% Zn over 4.8m; and hole LP-SC-08 with 3.78 g/t Au, 19 g/t Ag, 0.19% Cu, 0.1% Pb, and 0.2% Zn over 7m, including 5.33 g/t Au, 27 g/t Ag, 0.27% Cu, 0.1% Pb, and 0.3% Zn over 4.5m. Prismo has delineated with mapping and sampling in the last year other targets in the property such as Las Auras, Oromuri, and Española. The company has plans to drill-test these other targets as well as to continue exploring the property to develop additional new areas for drilling in several areas identified during reconnaissance work.
  • Tocvan Ventures Corp., released first pass reconnaissance results from its Pilar expansion area. Samples were collected 4.5km from the Pilar main Zone and returned high grade gold and silver values “associated with intense hydrothermal altered volcanic rocks on the newly acquired expansion area. Highlights include 5.60 g/t Au and 106 g/t Ag; 3.54 g/t Au and 645 g/t Ag; and 1.84 g/t Au and 177 g/t Ag. “The extent of the alteration in the area of the samples spans for over 3.3km of strike and over a 1.5km width as defined by satélite Aster data”.
  • Kootenay Silver Inc., announced results from its ongoing drilling program at its Columba project in Chihuahua.  The current program comprises a 12 to 15 hole campaign for a total of approximately 3,000m designed to extend known mineralization on the “D-Vein” target 0.06% Pb, and area at Columba. Drilling highlights include hole CDH-23-138 with 599 g/t Ag, 0.5% Pb, and 1.2% Zn over 13.56m, including 858 g/t Ag, 0.8% Pb, and 1.9% Zn over 8m, including 2,060 g/t Ag, 3.2% Pb, and 4.3% Zn over 1m; hole CDH-23-137 with 118 g/t Ag, 0.03% Pb, and 0.09% Zn over 29.20m, including 190 g/t Ag, 0.04% Pb, and 0.2% Zn over 11.20m, or 864 g/t Ag, 0.2% Pb, and 0.08% Zn over 1m, or 340 g/t Ag, 0.06% Pb, and 1.2% Zn over 4m; and hole CDH-23-136 with 203 g/t Ag, 0.03% Pb, and 0.09% Zn over 4.97m, including 335 g/t Ag, 0.03% Pb, and 0.08% Zn over 2.97m. “The first 12 holes of the current program are designed to extend the D-Vein in preparation of a follow up program aimed to result in a maiden resource in late 2024. In addition to the D Vein, the Company maintains a priority list of new vein targets and known vein extensions all warranting drill testing”.
  • Colibri Resource Corporation provided an update on its exploration activities at their Pilar, EP, and Diamante projects in Sonora. At Pilar project, Colibri received the notice from Tocvan Ventures Corp., that it has met all conditions set forth in its 2019 option agreement with Colibri to earn an initial 51% of its advanced exploration stage Pilar Gold & Silver Project. Under the terms of the agreement, Tocvan has until March18th, 2024 to purchase the remaining 49% of Pilar from Colibri by paying an additional CAD $2M in cash and issuing a 2% net smelter on the project to Colibri. Tocvan would maintain an option to buy back 1% of the royalty for CAD $1M. At EP project, Colibri recently completed 1 2,200m and consolidated land position consisting of Colibri’s long held Evelyn Gold Project and the contiguous Plomo Gold Project. At Diamante project, the company is currently completing a geological mapping and sampling program, taking a property-wide approach as well as a more detailed evaluation of selected showings. Sampling includes outcrop sampling as well as property-wide stream sediment sampling. The Company anticipates initiating a drill program at Diamante before the end of the calendar year.

ON MINING

  • Orla Mining Ltd., reported Q3, 2023 production results from its Camino Rojo project in Zacatecas. The company mined 1,840,224 tonnes of 0.81 g/t Au, processed 1,716,819 tonnes of 0.85 g/t Au, and stockpiled 123,404 tonnes of low grade of 0.28 g/t Au, to produce 32,425 Oz Au, of which 31,060 were sold.
  • Gold Resource Corporation announced preliminary Q3, 2023 production results from its Don David Gold Mine in Oaxaca. The company milled 128,884 tonnes (129,099 combined) of 2.63 g/t Au, 64 g/t Ag,0.32% Cu, 2% Pb, and 4% Zn to produce 3,982 Oz Au, 208.9K Oz Ag, 548.8K Lb Cu, 2.12M Lb Pb, and 5.76 M Lb Zn at realized prices of USD $1,934 per Oz Au, USD $24 per Oz Ag, USDS $8,185 per tonne of Cu, USD $2,196 per tonne of Pb, and USD $2,195 per tonne of Zn.
  • Equinox Gold Corp., announced that it will present its Q3, 2023 financial and operating results on October 31, 2023 (Los Filos Mine, Guerrero).
  • GoGold Resources Inc., reported Q3, 2023 production results from its Parral Tailings project in Chihuahua and provided an update on its Parral Zn circuit. The company produced during the quarter 169.4K Oz Ag, 1,106 Oz Au and 257.6K Lb Cu (300.8K Oz AgEq). The company also reported that the construction of a zinc circuit, in addition to the SART plant at Parral, is well underway and projected to be completed by the end of this year, with the project on budget and on schedule.
  • Santacruz Silver Mining Ltd., announced Q3, 2023 production results from its Zimapan Mine in Hidalgo. The company milled 192,158 tonnes of 80 g/t Ag, 1% Pb, 2.5% Zn, and 0.29% Cu with metallurgical recoveries of 76%, 82%,18%, and 46% respectively, to produce 378.7K Oz Ag, 3.42M Lb Pb, 8.36M Lb Zn, and 564.5K Lb Cu.
  • Avino Silver & Gold Mine Ltd., reported Q3, 2023 production results from its Avino Mine in Durango. The company milled 154,507 tonnes of 56 g/t Ag, 0.58 g/t Au, and 0.42% Cu with metallurgical recoveries of 86%, 72%, and 80% respectively to produce 237.2K Oz Ag, 2,077 Oz Au, and 1.14M Lb Cu (591.2K Oz AgEq).
  • Sierra Metals Inc., announced Q3, 2023 production results from their Bolivar and Cusi Mines in Chihuahua. At Bolivar Mine, the company processed 362,890 tonnes of 0.77% Cu, 15 g/t Ag, and 0.37 g/t Au with metallurgical recoveries of 92.1%, 81.95%, and 69.58% respectively to produce 5.67M Lb Cu, 148K Oz Ag, and 2,965 Oz Au (8.1M Lb CuEq). At Cusi Mine, Sierra Metals processed 29,050 tonnes of 127 g/t Ag, 0.15 g/t Au, and 0.45% Pb with metallurgical recoveries of 83.94%, 58.5%, and 87.83% respectively, to produce 99K Oz Ag, 81 Oz Au, and 251K Lb Pb (117K Oz AgEq).
  • Bear Creek Mining Corporation reported Q3, 2023 production results from its Mercedes Mine in Sonora. The company mined 123,505 tonnes and processed 125,208 tonnes of 2.42 g/t Au with a metallurgical recovery of 94.03%, to produce 9,158 Oz Au and 34,929 Oz Ag, of which 6,298 Oz Au were sold and 2,720 Oz Au were streamed. Bear Creek also provided gold production guidance for 2023 to 39,000-45,000 Oz Au.

ON FINANCING

  • Sierra Madre Gold and Silver Ltd., announced the amendment of all 5,123,092 subscription receipts, in order to extend the escrow release conditions and termination (as both terms are defined in the May 31 and Sep 14 News Releases) for an additional 30-day period (La Guitarra Mine Complex, Estado de Mexico State).
  • Bear Creek Mining Corporation announced the issuance of a secured convertible promissory note in the amount of USD $26,632,458 to defer a USD $25M current liability originally payable to a wholly-owned subsidiary of Equinox Gold Corp., Commencing on November 30, 2023, the company will make monthly interest payments in the amount of USD $155,356 to Equinox Gold with the balance of the principal and accrued interest payable in full on the Maturity Date (Mercedes Mine, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Sonoro Gold Corp., filed a NI 43-101 technical report for a Preliminary Economic Assessment (PEA) on its Cerro Caliche project in Sonora, with an effective day of August 28, 2023. PEA highlights include: pre-tax net present value discounted at 5% (NPV5) of USD $71.4M; pre-tax internal rate of return (IRR) of 59%; after-tax NPV5 of USD $47.7M with an IRR of 45%; gold recovery of 72% and silver recovery of 27%; 9 year life of mine (LOM) with 297,575 Oz AuEq;  LOM annual average production of 33K Oz AuEq at 0.45 g/t AuEq; initial CAPEX costs of USD $15.5M, including USD $1.83M in contingency; sustaining capital costs of USD $15.5M; cash operating cost of USD $1,295 per Oz AuEq; all included sustaining cost (AISC) of USD $1,395 per Oz AuEq; and a payback period of 2.9 years.
  • Sierra Madre Gold and Silver Ltd., announced that it has engaged Stantec Consulting International LLC to examine tailings deposition options at its La Guitarra Mine Complex in Estado de Mexico State. Results are expected towards the end of Q4, 2023.
  • Endeavour Silver Corp., released positive drill results from its ongoing drilling program being conducted at El Curso and Porvenir Dos Areas at its Guanacevi project in Durango. Drilling highlights (true widths reported) at El Curso Area include holes UCM-117 with 1.09 g/t Au and 384 g/t Ag (471 g/t AgEq) over 5.64m, including 4.73 g/t Au and 1,730 g/t Ag (2,076 g/t AgEq) over 0.37m; hole UCM-120 with 3.43 g/t Au and 1,265 g/t Ag (1,540 g/t AgEq) over 2.20m, including 14.35 g/t Au and 2,780 g/t Ag (3,944 g/t AgEq) over 0.21m; hole UCM-123 with 1.4 g/t Au and 265 g/t Ag (378 g/t AgEq) over 3.2m; and hole UCM-125 with 2.77 g/t Au and 859 g/t Ag (1,080 g/t AgEq) over 3.42m, including 8.22 g/t Au and 2,610 g/t Ag (3,268 g/t AgEq) over 0.64m. Within the El Curso concessions, 18 new holes have been completed totaling 3,162 metres. Drilling highlights (true widths reported) at Porvenir Dos Area include holes APD-13 with 1.08 g/t Au and 657 g/t Ag (743 g/t AgEq) over 3.47m, including 3.24 g/t Au and 4,090 g/t Ag (4,349 g/t AgEq) over 0.20m: and hole APD-23 with 1.15 g/t Au and 414 g/t Ag (506 g/t AgEq) over 2.77m, including 3.45 g/t Au and 1,170 g/t Ag (1,446 g/t AgEq) over 0.45m. Near Porvenir Dos, on the Alondra concessions, 19 new holes have been completed totalling 5,854 metres. “Endeavour plans to continue drilling towards the northwest to test continuity with the objective to access ore from development advancing between the El Curso and Porvenir Dos areas that would eventually be connected”.
  • Oroco Resource Corporation filed a Preliminary Economic Assessment (PEA) and updated Mineral Resource Estimate (MRE) for the North and South Zones of its Santo Tomas project in Sinaloa. Highlights of the PEA include a USD $2.33 B pre-tax NPV (8%) and USD $1.24 B after-tax NPV (85); 23% pre-tax IRR and 17.3% after-tax IRR; total life of mine (LOM) payable copper production of 4,749 M Lb; pre-tax payback of 4.1 years and after-tax pay-back of 5 years from first concentrate production; initial cost estimated at USD $1,339.9M , sustaining and expansion capital costs estimated at USD $1,134.5M; average annual LOM C1 cash cost of USD $1.66/Lb Cu on by-product basis; and an ultimate pit design constrained resource of 338M tonnes of indicated and 460M of inferred material. The table below shows the MRE for the Santo Tomas project:

Notes:

  1. Mineral resources are not mineral reserves and do not have demonstrated economic viability.
  2. Table abbreviations include: % = percent, g/t = grams per metric tonne, Mlb = million pounds, Koz = thousand troy ounces.
  3. The mineral resources are reported at an effective cut-off grade (CoG) of 0.15% Cu.
  4. All figures are rounded to reflect the relative accuracy of the estimates. Totals in the above table may not sum or recalculate from related values in the table due to rounding of values in the table, reflecting fewer significant digits than were carried in the original calculations.
  5. The mineral resources exclude identified oxide mineralization due to a lack of confidence in recovery assumptions of oxidized tonnages at this phase of the Project.
  6. Metal assays are capped where appropriate. At the PEA level of the Project, it is the Company’s opinion that all the elements included in the copper equivalent calculation have a reasonable potential to be recovered and sold.
  7. All dollar amounts are presented in U.S. dollars.
  8. Bulk density is estimated on a block basis using specific gravity data collected on diamond drill core.
  9. Reasonable prospects of eventual economic extraction (RPEEE) are demonstrated through use of an economic pit shell based on long-term copper price of $4.00/lb, molybdenum price of $13.50/lb, a gold price of $1,700/oz, and a silver price of $22.50/oz. Metal recovery factors used in the determination of CoG and economic pit shell for Cu, Mo, Au, and Ag have been applied based on metallurgical recovery calculations based on average feed grade. A 45-degree slope angle was applied.
  10. The Huites Reservoir boundary was ignored for the purposes of mineral resource determination. This is consistent with the previous study.
  11. The economic CoG was calculated to be 0.11% Cu but for consistency with the previous study, Oroco has elected to use an effective CoG at 0.15% Cu. CoG assumptions include a copper price of $4.00/lb., mining cost of $2.27/t, processing costs of $4.23/t, G&A costs at $0.65/t, mine recovery at 98%, mean Cu recovery at 83.7%, and royalties at 1.5%, have been applied in consideration of the RPEEE.
  12. Equivalent Copper (CuEq) percent is calculated with the formula CuEq% = ((Cu grade * Cu recovery [83.7%] * Cu price) + (Mo grade * Mo recovery [59.1%] * Mo price) + (Au grade * Au recovery [58.6%] * Au price) + (Ag grade * Ag recovery [54.2%] * Ag price)) / (Cu price * Cu recovery [83.7%]). It assumed that the Santo Tomas Project would produce a conventional (flotation) copper concentrate product based on metal recoveries indicated by PEA metallurgical test work and mean Indicated Resource feed grades.
  13. Reported contained individual metals in the table above represent in-situ metal, calculated on a 100% recovery basis, except for CuEq% which applies mean recovery assumptions (see Note 12).
  • Gatos Silver Inc., announced filing of updated technical report on its Cerro Los Gatos Mine, Chihuahua.  The 2023 Technical Reports, titled “Mineral Resource and Mineral Reserve Update, Los Gatos Joint Venture, Chihuahua, Mexico” dated October 20, 2023, support the disclosure made by the Company in its September 6, 2023 press release announcing an updated Cerro Los Gatos mineral reserve, mineral resource, and life of mine plan. 

ON DEALS AND CORPORATE ISSUES

  • Goldgroup Mining Inc., exercised its option to purchase all of the issued and outstanding common shares of Minera Cerro Esperanza S.A de C.V. (MER), which owns the Company’s previously held Cerro Prieto mining concessions, in Sonora, “by a full option price of USD $1.85M in common shares of the Company and will issue 25,067,500 common shares to Calu Opportunity Fund LLP (Calu), the owner of MER and a material shareholder of the Company. As a result of the transaction, Calu will own, directly and indirectly, 55,297,000 common shares of the Company representing approximately 66.83% of the Company’s issued and outstanding share capital. The completion of the transaction is subject to final TSX approval”.
  • Vortex Metals Inc., announced the attendance at the 121 Mining Investment Conference in New York (Riqueza Marina project, Oaxaca).
  • Tocvan Ventures Corp., completed a definitive agreement with a private owner to acquire 100% interest in 2,172.7 hectares adjacent to Pilar project in Sonora by paying USD $4M in cash and the issuance of 2.5M of common shares over the 5-year term of the agreement. A total minimum work commitment of USD $1M is considered over the agreement. The title owner will retain a 2% NSR on the properties acquired. After the initial 5-year term the company can elect to extend the agreement an additional 10 years by starting advanced royalty payments or purchase full title ownership through an additional cash payment of USD $500K.
  • Silver Viper Minerals Corp., amended the terms of its option to acquire 100% ownership of three mineral concessions totaling 2,102 hectares at the La Virginia project, Sonora. “The amendment clarifies that the USD $775K (or CAD $1,042,142.50, based on a fixed exchange rate of USD$-CAD$ of 1.3447 set out in the amendment) of Shares issuable by the Company to satisfy as a portion of the final payment under the Agreement in June 2024, will be issued with a deemed price per Share equal to the higher of (i) the closing price of the Shares on the TSX Venture Exchange on June 24, 2024 or (ii) CAD $0.095. In addition, the amendment also sets out that the Company shall not issue more than 10,969,922 Shares in satisfying this portion of the consideration due to the vendors. As previously announced by the Company, in addition to such issuance of Shares, the Company will also make a cash payment of US$200,000 to the vendors. In satisfaction of the Company’s payment of the USD $1,5M (or CAD $2.01M, based on an exchange rate of USD$-CAD$ of 1.3447) of Shares due to the vendors in April 2023 under the amended Agreement, the Company confirms it issued the vendors an aggregate of 16,808,750 Shares at a deemed price per share of CAD $0.12 on April 25, 2023”.

ON SOCIAL RESPONSIBILITY

  • Minera Media Luna, a subsidiary of Torex Gold Resources Inc, renewed the agreement of the Avanzando Juntos scholarship program with 60 young people, 33 of whom are pursuing their high school studies and 27 plus a bachelor’s degree. This is the sixth consecutive year in which the company supports young students from the municipalities of Cocula and Tepecoacuilco; and the second to young people from Eduardo Neri, having MXP $441K of investment that the company grants to the students with the best averages of the January-June 2023 school semester, thus adding an annual amount of MXP $ 882K. The people benefiting from the Avanzando Juntos scholarship program are from the communities of Nuevo Balsas, Real del Limón, La Fundición, San Nicolás, Acalmantlila, Tlanipatlan, Atlixtac in the municipality of Cocula; as well as Puente Sur Balsas and Mazapa, in the municipality of Eduardo Neri; and from Tepecoacuilco to young people from the Valerio Trujano town. The company’s objective has been to reaffirm the commitment to strengthen education as a tool in the development of social and human capital, for a prosperous future.

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

On the picture above, Cu mineralization in a Carbonate Replacement Deposit (CRD) in Durango, Mexico. Photo by Miguel A Heredia.