The Mining and Exploration News in Mexico: Highlights on the Third Week of April, 2021

By Jorge Cirett

During the 15th week of the year (April 12th to April 18th, 2021), as a sign of the strong current activity, at least 43 press releases were announced by companies working in Mexico. To note, ten companies posted exploration advances on their properties, seven presented mining related news, six posted on financing or share options (including C$2.35 M, $3 M, C$14.1 M, C$5.6 M and $25 M), eight more on project development or resource definition and three posted on corporate issues. ON MEXICO ISSUES, Francisco Quiroga, the ex-secretary of Mining has been appointed ambassador in Germany. The Sonora Mining Cluster has two new female counselors. Napoleon Gomez Urrutia and its SNTMMS Union have been condemned to pay US$54 M to some of its affiliates. A new Coordination has been created in the Economy Secretariat to promote mining. The CTM Union opposes the outsourcing reform that would decrease the participation of workers in the profits of mining companies. ON EXPLORATION, In Sonora, Silver Spruce signed a LOI on the Diamante 1 and Diamante 2 projects; Ridgestone announced its exploration plan for the Rebeico property; Tocvan Ventures commenced phase II RC drilling at Pilar; Carlyle Commodities released good drilling results from Cecilia; Orogen informed its Lola and Sarape properties are being drilled by partners; Canuc Resources released information on the first drill hole on the present campaign at its San Javier Au-Ag project. In Chihuahua, Monarca Minerals signed a surface access agreement for its San Jose project; Kootenay Silver updated on drilling of its Columba project. In Sinaloa, Viszla Silver released drilling results from the Napoleon zone at its Panuco project. In San Luis Potosi and Zacatecas Advance Gold released results from auger sampling at several salars. ON MINING, Magna Gold, Fortuna Silver Mines, Sierra Metals, Excellon and First Majestic Silver released Q1 2021 production results. Consolidated Zinc announced the commencement of concentrate production from the recently refurbished plant at Plomosas in Chihuahua. ON FINANCING, Colibri Resources, Sonoro Gold, Santacruz Silver Mining, Heliostar Metals and Candelaria Mining released news on financing (with C$2.35 M, $3 M; $14.1 M, C$4 M and up to $25 M respectively). Defiance Silver completed its uplisting to the OTCQX Best Market ON RESOURCES AND DEVELOPMENT, Equinox Gold commenced the development of the Bermejal underground mine in Guerrero. Xali Gold submitted permit applications for the Mexico Mines Tailings project in El Oro, Estado de Mexico. Gatos Silver presented good drilling results from both extensions of the Cerro Los Gatos deposit in Chihuahua. Fabled Silver Gold released results from drilling at Santa Maria, Chihuahua. SilverCrest Metals released high-grade drilling results from several veins at Las Chispas, Sonora. Almaden Minerals is conducting an induced polarization survey at the Ixtaca deposit in Puebla. GoGold Resources released drilling results from El Favor zone at its Los Ricos North project in Jalisco. Golden Tag Resources released results from drilling at its San Diego property in Durango.   ON DEALS AND CORPORATE ISSUES, VanGold Mining closed with Endeavour Silver the acquisition of the El Cubo mine and mill complex in Guanajuato. Silver Spruce Resources signed a LOI with Colibri Resource on the Diamante 1 and Diamante 2 properties in Sonora. Empress Royalty executed a $5 M Silver Stream agreement with Telson Mining. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • Francisco Quiroga Fernández, Mining ex-subsecretary was appointed ambassador of Mexico in Germany. Rare in the present administration, he’s a competent professional with experience in the private industry, and more than capable to develop and strengthen political and economic ties between the two countries.  
  • The Sonora Mining Cluster named Silvia Álvarez and Maria López Rosas as new counselors to the organism.
  • The Sindicato Nacional de Trabajadores Mineros, Metalúrgicos y Similares de La República Mexicana (a strong Mining Union) and its leader Napoleón Gómez Urrutia have lost a legal law suit and have been condemned by the Junta Federal de Conciliación y Arbitraje to pay US$54 M. The Union received these funds from the sale of the Cananea mine 15 years ago, and was supposed to deliver that money to the at the time workers of the company in charge. The union failed to deliver the funds to the miners.
  • The Mexican president ordered by decree the creation of the Coordination of Extractive Activities on the Economy Secretariat. Said unit is to coordinate the mining activities of the State and actions to promote national and foreign investments in mining, among other activities.
  • The CTM Union (Confederación de Trabajadores de México) opposes the reform on outsourcing that would lower the amount the miners receive as participation on the company’s annual profits.  

ON EXPLORATION

  • Silver Spruce Resources Inc. signed a letter of intention (LOI) on two properties in Sonora, Diamante 1 and Diamante 2 covering 1,057 hectares. Historical assays from samples in the Diamante 1 and Diamante 2 properties, which display epithermal intermediate sulfidation mineralization have returned up to 39.8 gpt Au, 3,460 gpt Ag, 7.3% Pb, 5.6% Zn. Diamante 1 has already six main targets, including the La Prieta-El Aguaje vein system, which runs for 2,000 m averaging 1 m in width. At Diamante 2 The Calton area displays two vein 900 m and 1,100 m in length, ranging from 0.30 m to 1.70 m in width. The El Cumbro-Mezquite Raizudo veins follow a structural trend 900 m long, displaying an average width of 1 meter.
  • Advance Gold Corp. released results from auger drilling sampling at all the salars it recently acquired in Zacatecas and San Luis Potosí. The 0.5 m to 1 m of depth samples returned highlighted results of up to 650 ppm boron (B), 1.91% Potassium (K) and 620 ppm Lithium (Li). The average grade of the samples was 247 ppm B, 1.17% K and 215 ppm Li.
  • Monarca Minerals Inc. executed and ratified by a Notary Public the surface access agreement with both the Ejido and Colonia on its San Jose silver project in Chihuahua. The company is now to apply for the environmental permit that will allow it to conduct its planned 5,000 m drilling campaign.
  • Ridgestone Mining Inc. announced an exploration plan for its 3,459 hectares Rebeico project in Sonora. The current phase will comprise geologic mapping, sampling and prospecting, with focus on the New Year zone, the Santa Elena outcrop and El Cobre mine.
  • Tocvan Ventures Corp. announced the start of phase II of its drilling program at the Pilar project in Sonora. The two-stage 4,000 m reverse circulation (RC) drill program will focus first on the “definition and expansion of the Main Zone, which during Phase I returned 94.6-meters at 1.6 g/t Au including 9.2m at 10.8 g/t Au and 38 g/t Ag”, and then to test the new targets across the property.
  • Kootenay Silver Inc. reported it has completed 12 core drill holes totalling 1,800 m as part of its 5,000 m campaign at its Columba project in Chihuahua. Kootenay has tested the F vein and is now testing an area east of the J-Z zone.
  • Carlyle Commodities Corp. released the first batch of drill results from the Cecilia project in Sonora. The program consisted of seven holes, of which results have been received for five. The best intercept was 24.2 m @ 1.51 gpt Au. Other core-length highlighted intervals comprise 1.30 m @ 0.69 gpt Au; 5.95 m @ 0.20 gpt Au, 3.10 m @ 0.52 gpt Au; 9.45 m @ 0.23 gpt Au; 1.00 m @ 0.55 gpt Au; 3.45 m @ 0.35 gpt Au; 4.30 m @ 0.29 gpt Au; 6.10 m @ 0.43 gpt Au; 3.00 m @ 0.87 gpt Au. “The first drill program from Carlyle and Riverside was focused on targeting the hydrothermal system identified at two principal elevations: 2,200 m and 1,900 m, respectively corresponding to the San Jose Target and the North Breccia Target…… to test the continuity of the mineralized structures at shallow depth”.  
  • Orogen Royalties Inc. announced the commencement of drilling programs on two of its properties in Sonora. At La Lola, partner Heliostar Metals Ltd. has initiated a 1,500 m drilling program. At the 57.8 square km Sarape project, Orogen and partner Hochschild PLC commenced a planned 3,000 m program. Eight holes will be drilled on 2.5 km of the Sarape vein. “In 2019, nine holes drilled within a 380-metre-long segment of the vein defined a structural dilation zone at 100-350 metres depth (Figure 2). In this zone the vein thickens to 23.6 metres in width..…. A deeper horizon will also be drilled to identify if the grade of the vein improves with depth”.
  • Canuc Resources Corp. informed on drilling advance at its San Javier Ag-Au project in Sonora. The first hole of a planned 6,000 m program was ended at 89.5 m in a fault zone. It intersected brecciated sedimentary rocks with stockwork veining and three intervals of massive magnetite breccia. “The 20-hole program is designed to test at least 4 magnetic features that underlie areas where a 2020 mapping and rock sampling program identified silver, gold and copper mineralization. At surface, the host rocks for three of these features are found to be magnetite breccia”. The program is focused on magnetic anomalies identified by a previous survey.
  • Viszla Silver Corp. released drilling results from step out drilling at the southern extension of the Napoleon prospect at its Panuco project in Sinaloa. The Napoleon vein has been mapped for more than 2.5 km and has four rigs drilling at the time. Highlighted true width intercepts comprise 4.46 m @ 890 gpt Ag, 19.99 gpt Au, 0.7% Pb, 1.8% Zn (including 0.92 m @ 3,804 gpt Ag, 91.91 gpt Au, 1.5% Pb, 3.5% Zn); 1.92 m @ 105.9 gpt Ag, 7.28 gpt Au, 0.7% Pb, 2.9% Zn (including 1.45 m @ 131 gpt Ag, 9.39 gpt Au, 0.8% Pb, 3.1% Zn)

ON MINING

  • Fortuna Silver Mines Inc. released production results for the first quarter 2021, including figures from its Mexican operations. At San José, in Oaxaca, 259.8 K tonnes @ 217 gpt Ag, 1.36 gpt Au were milled, recovering 90.8% Ag, 90.5% Au to produce 1.65 M Oz Ag, 10,301 Oz Au.
  • Consolidated Zinc Ltd. announced the 2021 zinc concentrate “benchmark treatment charge (TC) has been agreed between the major miners and smelters at US$159.00/t of concentrate, a reduction of 47% from last year’s benchmark treatment charge of US$299.75/t”. Treatment charges in 2020 represented 33% of total operating costs (before by-product credits) being the single largest operating cost (Plomosas, Chihuahua).
  • Magna Gold Corp. informed production levels have benefited from the accelerated stripping program, resulting in month to month growth in gold production, with 3,085 ounces in January, 2,670 ounces in February and 4,030 ounces in March. Magna anticipates the mine will return to full scale commercial production by June of this year, with 2021 guidance in the range of 55,000 to 65,000 Oz Au. During the Q1 2021, 619 K tonnes were mined @ 0.34 gpt Au, with 5.2 M tonnes of waste moved (8.40 strip ratio) to produce 9,785 Oz Au, 8.1 K Oz Ag.
  • Sierra Metals Inc. reported first quarter 2021 production reports, including figures from its Mexican properties. At Bolivar, in Chihuahua, 371.6 K tonnes were processed @ 0.77% Cu, 19.7 gpt Ag, 0.19 gpt Au, recovering 82.8% Cu, 83.6% Ag, 69.6% Au, to produce 5.2 M Lb Cu, 197 K Oz Ag, 1,591 Oz Au (7.3 M Lb CuEq). At Cusi, also in Chihuahua, 76.6 K tonnes were processed @ 15.2 gpt Ag, 0.16 gpt Au, 0.22% Pb, recovering 80.9% Ag, 39.6% Au, 81.5% Pb, to produce 313 K Oz Ag, 155 Oz Au, 298 K Lb Pb (334 K AgEq Oz Ag).
  • Consolidated Zinc Ltd. announced the first concentrate from the newly refurbished plant at its Plomosas property in Chihuahua has been produced.
  • Excellon Resources Inc. released Q1 2021 production results from the Platosa mine in Durango. At the site 21,212 tonnes were mined, 21,764 tonnes were milled @ 524 gpt Ag, 5.35% Pb, 6.73% Zn, recovering 89.7% Ag, 81.8% Pb, 74.7% Zn to produce 328.7 K Oz Ag, 2.1 M Lb Pb, 2.4 M Lb Zn, or 516.7 K Oz AgEq.
  • First Majestic Silver Corp. produced during the Q1 2021 2.9 M Oz Ag, 23,873 Oz Au, or 4.5 M Oz AgEq from its three mines in Mexico: San Dimas in Durango, Santa Elena in Sonora and La Encantada in Coahuila. The company completed 39,552 m in exploration drilling during the quarter, with 10 rigs at San Dimas, seven rigs at Santa Elena and two rigs at La Encantada.

ON FINANCING

  • Colibri Resource Corp. has closed a non-brokered private placement for CAD$2.35 M in gross profits. (Evelyn, Sonora).
  • Sonoro Gold Corp. has increased its non-brokered private placement to raise an aggregate of $3 M thorough the exercise of over allotment options (Cerro Caliche, Sonora).
  • Santacruz Silver Mining Ltd. closed its non-brokered private placement offering, for gross proceeds of CDN$14.1 M (Carrizales, Hidalgo).
  • Defiance Silver Corp. successfully completed an uplisting to the OTCQX Best Market (San Acacio, Zacatecas).
  • Heliostar Metals Ltd. is increasing the size of its C$4 M marketed private placement to raise up to C$5.6 M (La Lola, Sonora).
  • Candelaria Mining Corp. intends to raise up to $25 M to fund exploration activities at the Caballo Blanco district in Veracruz, and the Pinos project in Zacatecas.

ON RESOURCES AND DEVELOPMENT

  • Equinox Gold Corp. is commencing development of the Bermejal underground mine at its Los Filos project in Guerrero.
  • Xali Gold Corp. submitted permit applications for the Mexico Mines Tailings project in El Oro, Estado de México. The permits are to allow both the transportation and re-processing of the tailings at a new 25 hectares plant site located 5 Km from the current location. Xali’s is to pay the El Oro municipality an 8%  net profit interest (NPI). The project has an inferred resource of 1.27 M Tonnes grading 2.94 Au g/t, 75.12 Ag g/t, containing 119,900 Oz Au and 3.06 M Oz Ag.
  • Gatos Silver Inc. reported drilling results of delineation drilling at Cerro Los Gatos in Chihuahua. The program has demonstrated continuity in both the southeast and northwest projections of the current reserve. Highlighted true width drill results include: 9.5 m @ 0.11 gpt Au, 51 gpt Ag, 2.1% Pb, 3.1% Zn; 3.4 m @ 0.12 gpt Au, 122 gpt Ag, 5.0% Pb, 9.8% Zn, 0.2% Cu; 5.4 m @ 0.25 gpt Au, 121 gpt Ag, 1.5% Pb, 2.9% Zn; 7.2 m @ 0.14 gpt Au, 106 gpt Ag, 3.5% Pb, 3.4% Zn, 0.1% Cu; 2.6 m @ 0.21 gpt Au, 327 gpt Ag, 9.2% Pb, 3.8% Zn, 0.14% Cu; 12.0 m @ 0.15 gpt Au, 44 gpt Ag, 1.1% Pb, 4.0% Zn, 0.15% Cu; 2.8 m @ 0.20 gpt Au, 111 gpt Ag, 1.6% Pb, 3.9% Zn, 1.3% Cu; 1.9 m @ 0.12 gpt Au, 132 gpt Ag, 3.2% Pb, 9.9% Zn, 0.4% Cu; 7.2 m @ 0.06 gpt Au, 25 gpt Ag, 1.0% Pb, 10.3% Zn, 0.2% Cu; 5.7 m @ 0.17 gpt Au, 152 gpt Ag, 3.0% Pb, 4.4% Zn, 0.30% Cu.
  • Fabled Silver Gold Corp. released drilling results from its Santa Maria property in Chihuahua. The last sample on the last drill hole returned 75.9 gpt Ag, with 6.4 m of similar material awaiting results. Fabled is making a reinterpretation of previous work and testing the new targets identified. The ongoing 8,000 m drill program has been increased to at least 9,200 m. “This program will be focused underground to delineate the Santa Maria Central Structure with multi underground drill stations being prepared”.
  • SilverCrest Metals Inc. released additional in-fill and expansion drill results s from the Babi Vista vein splay, Babi Vista vein, Granaditas 1 vein, Granaditas 2 vein, and adjacent hangingwall and footwall veins in the Babicanora Area of its Las Chispas Project in Sonora. The results are from 78 holes totaling 29,308 m completed since the last news release for these veins, in areas with mineral resources or in close proximity. Average results for the Babi Vista vein splay comprise 0.91 true width @ 16.12 gpt Au, 1,351 gpt Ag, with individual intercepts of up to 1.04 m @ 185.65 gpt Au, 13,959 gpt Ag. Babi Vista Footwall and Granaditas 1 average 1.04 m @ 12.89 gpt Au, 1,884 gpt Ag, with the highest intercept running 0.40 m @ 114.0 gpt Au, 78,872 gpt Ag (7.89% Ag). The Babi Vista and Granaditas 2 vein average 0.67 m @ 4.56 gpt Au, 414 gpt Ag, while the Babi Vista Hangingwall averages 0.43 m @ 2.55 gpt Au, 249 gpt Ag.
  • Almaden Minerals Ltd. is conducting an induced polarization geophysical survey at the Ixtaca deposit in Puebla. “The work is designed to help define drill targets beneath the area of hydrothermal alteration called the Southeast Alteration (SE) zone and at depth beneath the Ixtaca deposit (“Ixtaca Deeps”). It is hoped that this geophysical survey, along with past survey results, will identify potential zones of veining like those in the Ixtaca deposit. The discovery drill hole in the original Ixtaca deposit area was planned in part based on high resistivity and chargeability results obtained in an earlier IP geophysical survey”.
  • GoGold Resources Inc. released results from six diamond drill holes from El Favor area at its Los Ricos North project in Jalisco. Highlighted core-length intervals comprise 69.3 m @ 108 gpt Ag, 0.49 gpt Au (including 15.3 m @ 392 gpt Ag, 1.76 gpt Au); 9.6 m @ 112 gpt Ag, 0.39 gpt Au; 59.0 m @ 119 gpt Ag, 0.32 gpt Au (including 5.0 m @ 361 gpt Ag, 0.90 gpt Au); 2.8 m @ 110 gpt Ag, 0.16 gpt Au; 16.1 m @ 97 gpt Ag, 0.21 gpt Au; 12.0 m @ 86 gpt Ag, 0.09 gpt Au; 3.2 m @ 204 gpt Ag, 0.15 gpt Au; 7.2 m @ 135 gpt Ag, 0.76 gpt Au; 23.3 m @ 92 gpt Ag, 0.22 gpt Au; 12.9 m @ 254 gpt Ag, 0.81 gpt Au (including 8.2 m @ 392 gpt Ag, 1.25 gpt Au).
  • Golden Tag Resources Ltd. released results from the first three holes of a 4,500 m campaign at its San Diego project in Durango. A hole in the Fernandez zone returned 50.17 m @ 105 gpt AgEq; Another hole intersected 127.3 m of skarn/Fernandez style mineralization, intersecting 35.46 m @ 0.06 gpt Au, 30 gpt Ag, 0.14% Pb, 0.24% Zn, 0.01% Cu (52 gpt AgEq) and 91.84 m @ 0.07 gpt Au, 15 gpt Ag, 0.31% Pb, 0.34% Zn, 0.01% Cu (49 gpt AgEq). Other holes intercepted 1.11 m @ 0.90 gpt Au, 142 gpt Ag, 0.13% Pb, 0.21% Zn, 0.02% Cu; 3.25 m @ 0.02 gpt Au, 237 gpt Ag, 0.41% Pb, 0.82% Zn, 0.08% Cu; 1.10 m @ 0.28 gpt Au, 195 gpt Ag, 1.70% Pb, 1.92% Zn, 0.07% Cu; 2.69 m @ 0.05 gpt Au, 355 gpt Ag, 0.30 % Pb, 0.41% Zn, 0.02% Cu; 8.41 m @ 0.02 gpt Au, 24 gpt Ag, 0.61% Pb, 0.49% Zn, 0.06% Cu.

ON DEALS AND CORPORATE ISSUES

  • VanGold Mining Corp. closed the acquisition of El Cubo mine and mill complex in Guanajuato with Endeavour Silver Corp..  The deal involved the payment of US$7 M in cash plus VAT and the delivery of 21.33 M shares of VanGold and a promissory note for $2.5 M a year from closing. El Cubo has 508 K tonnes grading 194 gpt Ag, 2.44 gpt Au containing 3.17 M Oz Ag, 39,860 Oz Au as indicated resources and 1.45 M tonnes @ 214 gpt Ag, 2.78 gpt Au containing 10 M Oz Ag, 129,900 Oz Au as inferred resources.
  • Silver Spruce Resources Inc. signed a letter of intention (LOI) with Colibri Resource Corp. to acquire up to 50% interest in four concessions in Sonora, comprising two properties, Diamante 1 and Diamante 2 covering 1,057 hectares. The projects are separated by 700 meters, and in close proximity to other Colibri properties. The initial cash payment by Silver Spruce is to be of $75 K (Note.- The details of the deal are lengthy and involve a third party, please take a look to the appropriate press release if interested in it).
  • Empress Royalty Corp. executed the US$5 M silver stream agreement on the Telson Mining Corp. owned Tahuehueto project in Durango. “Empress has now executed the US$5M silver stream agreement on production from Telson’s Tahuehueto project in Mexico. The US$5M Stream is on 100% of the payable silver production from Tahuehueto for the first 1,250,000 payable ounces; thereafter, the percentage will stepdown to 20% of the payable silver production to a maximum of 10 years from first production after which the Stream terminates”.

ON SOCIAL RESPONSIBILITY

  • No Relevant News.

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

On the image below:  Disseminated and vein constrained sulfides in a porphyritic intrusive rock in split diamond core from Cerro San Pedro in San Luis Potosi. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the First Week of February, 2021

By Jorge Cirett

During the 5th week of the year (February 1st to February 7th, 2021), there were at least 47 press releases by companies working in Mexico. To note, seven companies posted exploration advances on their properties, five more informed on various mining items, seven posted on financing or share options, eleven on project development and nine more on corporate issues. ON MEXICO ISSUES, mining production fell 3.1% in Mexico to November 2020, although some metals and States saw an increase. Some projects with development funding include, Las Chispas, San Antonio (both in Sonora) and Avino in Durango. ON EXPLORATION, in Baja California, Comet Resources updated on exploration at its Santa Teresa project. In Sonora, Silver Spruce is to conduct an airborne Lidar survey over its Mezquite and Jackie properties. In Chihuahua, Radius Gold conducted a geophysical survey at Plata Verde; Reyna Silver released high-grade results from trench and rock chip samples at its Batopilas project. In Zacatecas, Alien Metals is to map and sample a new area on its San Celso project. Advance Gold released drill results from Tabasqueña. ON MINING, Santacruz Silver presented quarterly and full year 2020 reports. Golden Minerals poured the first gold at Rodeo. Excellon Resources released high-grade results from exploration and expansion drilling at Platosa. McEwen Mining presented its production guidance for 2021. ON FINANCING, Silver Dollar, Sonoro Gold and Solaris Resources informed on issues related to their shares; Mammoth Resources, Plymouth Realty and Bacanora Lithium announced the closing/opening of financing rounds for $688 K, $7.4 M and $65 M respectively (and $31 M more on Bacanora Lithium shares bought by Ganfeng); Prospero Silver is consolidating shares 3 to 1. ON RESOURCES AND DEVELOPMENT, Silver Tiger Metals discovered a new mineralized zone at its El Tigre project. Gold Resource released high-grade underground drilling results from its Don David mine. Silver Dollar completed a reinterpretation of the model at La Joya while selecting new targets. Impact Silver bought a surface drill rig and an underground drill rig to use at Zacualpan. Endeavour Silver updated mineral resource estimates for Guanaceví, Bolañitos, El Compas, Terronera, El Cubo, Guadalupe y Calvo, and Parral properties. Fabled Silver released drill results from Santa María. GoGold informed on drilling results at the La Trini deposit at its Los Ricos North project. Sailfish Royalty described the Gavilanes project. Xtierra released high-grade drilling results on the Victor vein at the Bilbao project. Azucar Minerals released results from one drill hole at the Porvenir zone of the El Cobre project.  ON DEALS AND CORPORATE ISSUES, Endeavour Silver optioned The Guadalupe y Calvo project to Ridgestone Mining. Mako Mining informed on the sale of La Trinidad to GR Silver Mining. Silvercorp Metals acquired La Yesca project in Nayarit. Bacanora Lithium informed Ganfeng increased its position in Bacanora to 28.88% with the acquisition of US$31 M in shares. SilverCrest Metals released a positive FS for Las Chispas. Almaden Minerals provided a scope on the advancement of the Ixtaca project, given the refusal of development by the permitting authority. Magna Gold announced exploration activities have commenced at Margarita, a second stage of drilling is planned at La Pima and mapping and a geophysical survey are planned for Q4 at Los Muertos. Orla Mining updated on exploration activities on its 163,000 hectares land package. Plymouth Royalty is to acquire the Peñasco Quemado, Pluton and La Frazada projects from Silver One. ON SOCIAL RESPONSIBILITY, Grupo Mexico and Minera Peñasquito informed on actions that benefit the communities.

ON MEXICO ISSUES

  • Mining production in Mexico has fallen 3.1% during January to November of 2020, compared with the same period a year before. Gold, zinc and silver production grew by 3.8%, 3.4% and 1.2% respectively, but production in several other commodities fell, like iron pellets (25.9%), coking coal (21.3%), sulphur (15.1%), lead (13.7%), copper (7.3%), gypsum (5.1%).
  • Mexican projects that have received funding for development include Las Chispas in Sonora (SilverCrest, US$120 M), San Antonio in Sonora (Osisko, US$53.5 M) and Avino in Durango (Avino Silver, US$25 M).
  • Mining companies with significant exploration budgets in Mexico include First Majestic Silver, with US$27.6 M, Pan American Silver with US$42 M (not all in Mexico), Fortuna Silver with US$10 M, Alamos Gold with US$9 M, Endeavour Silver with US$8.4 M, Capstone Mining with US$5.0 M.
  • The Gold production in Chihuahua increased 15% in 2020. In November of last year 1,713 kilograms of gold were extracted, only behind Sonora (3,120 Kg) and Guerrero (1,998 kg).

ON EXPLORATION

  • Vizsla Resources Corp. provided results from eight new holes at the Napoleon prospect of the Panuco project in Sinaloa. Highlighted true width results comprise 86 gpt Ag, 18.45 gpt Au, 1.3% Pb, 3.4% Zn (1,909 gpt AgEq), including 0.43 m @ 307 gpt Ag, 101.0 gpt Au, 2.9% Pb, 10.5% Zn (10,019 gpt AgEq); 6.0 m @ 63 gpt Ag, 1.54 gpt Au, 0.2% Pb, 1.2% Zn (237 gpt AgEq), including 1.45 m @ 216 gpt Ag, 5.80 gpt Au, 0.3% Pb, 3.9% Zn.
  • Advance Gold Corp. released information on drilling at its Tabasqueña project in Zacatecas. Highlighted core length intervals comprise 0.40 m @ 0.04 gpt Au, 41 gpt Ag, 2.0% Pb, 2.9% Zn and 0.20 m @ 0.79 gpt Au, 32 gpt Ag, 2.5% Pb, 3.8% Zn.
  • Comet Resources Ltd. provided an update on the Santa Teresa project in Baja California. Comprehensive mapping of historical drill collars, shafts and artisanal workings was conducted, with mapping identifying numerous narrow vein structures at surface. A strong association between pyrrhotite and gold has been noted.
  • Radius Gold Inc. published the results of recent geophysical surveys at its Plata Verde project in Chihuahua. “New IP/Resistivity sections show significant structural zones extending to depth directly below the known large scale historic silver mines”. Radius is now targeting extensions and repetitions of the shallow dipping breccias, stockworks and disseminations within the historic mines, as well as the sub-vertical feeder zones interpreted below.
  • Alien Metals Ltd. informed mapping and sampling is to take place at the Nueva Andromeda claim, adjacent to its San Celso project in Zacatecas. The environmental drilling permit is being awaited.
  • Reyna Silver Corp. released high-grade results from its surface and trench sampling program at its Batopilas project in Chihuahua. Based on ASTER satellite image analysis and structural mapping, 258 trench, rock chip and soil samples were collected. Two new veins were found, one with native silver, typical of Batopilas, and the first gold rich vein in the property. High-resolution hyperspectral imagery shows distinctive alteration mineralogy that coincides with the new and the known veins with additional anomalies. Highlighted channel silver results comprise 42,306 gpt, 18.078 gpt, 6,320 gpt, 2,880 gpt, 2,060 gpt, 1,510 gpt, 989 gpt, 841 gpt, 405 gpt, 400 gpt 310 gpt and two soil samples returning 662 gpt and 305 gpt Ag. Highlighted channel sample gold results comprise 21.40 gpt, 18.35 gpt, 18.30 gpt, 16.90 gpt, 15.40 gpt, 15.20 gpt, 12.90 gpt, 12.40 gpt, 7.82 gpt, 3.77 gpt, 3.24 gpt, 2.03 gpt, 1.03 gpt, 1.02 gpt.
  • Silver Spruce Resources Inc. signed an airborne Lidar survey contract on its El Mezquite and Jackie properties in Sonora. The survey will produce a high resolution digital elevation and surface models topographic map and an orthorectified color aerial photography.

ON MINING

  • Golden Minerals Co. reported the first gold pour from its Rodeo project in Durango. The pour occurred nearly three weeks after the first loads of material were trucked from the Rodeo site to the company’s Velardeña oxide plant for processing.
  • Excellon Resources Inc. released assay results from underground drilling at its Platosa mine in Durango. Relevant exploration and expansion results include core length intervals of 4.2 m @ 741 gpt Ag, 7.5% Pb, 4.8% Zn (including 2.0 m @ 1,153 gpt Ag, 12.3% Pb, 6.1% Zn, 1.7 gpt Au); 2.4 m @ 728 gpt Ag, 21.2% Pb, 17.8% Zn. Some current definition and infill drilling comprise: 2.4 m @ 441 gpt Ag, 6.4% Pb, 10.6% Zn; 2.8 m @ 181 gpt Ag, 5.0% Pb, 6.5% Zn; 2.4 m @ 728 gpt Ag, 21.2% Pb, 17.8% Zn; 4.2 m @ 267 gpt Ag, 7.1% Pb, 14.5% Zn; 4.2 m @ 585 gpt Ag, 3.4% Pb, 3.3% Zn; 4.2 m @ 741 gpt Ag, 7.5% Pb, 4.8% Zn, 0.9 gpt Au.
  • Mexus Gols US. continues to haul and crush mineralized material to be laid on section 2 of the leach pad at its Santa Elena mine in Sonora.
  • McEwen Mining Inc. presented its production guidance for 2021, including from its Mexican operations. At El Gallo, in Sinaloa, the residual leaching operations are expected to produce between 4,500 and 5,900 Oz AuEq. The feasibility study for the Fenix Au-Ag project in Sinaloa was presented recently, with a 51% after-tax IRR, $90.8 M NPV@8% and a 2.9 years payback, with average annual production of 26 K Oz Au in phase 1 and 4.2 M Oz Ag in phase 2.
  • Santacruz Silver Mining Ltd. released production results for the Q4 and full year 2020. During the quarter, at Zimapan in Hidalgo 180 K tonnes were processed @ 76 gpt Ag, 0.62% Pb, 2.20% Zn, 0.32% Cu, recovering 67.4% Ag, to produce 297.5 K Oz Ag, 948 tonnes Pb, 2,711 tonnes Zn, 402 tonnes Cu. At Rosario in San Luis Potosí, 21.6 K tonnes were processed @ 71 gpt Ag, 0.18 gpt Au, 0.38% Pb, 1.40% Zn, recovering 87.5% Ag, to produce 43.3 K Oz Ag, 77 Oz Au, 73 tonnes Pb, 244 tonnes Zn. At Veta Grande in Zacatecas, no processing took place during the quarter. For the full year, the company produced 340.9 K Oz Ag, 77 Oz Au, 1,022 tonnes Pb, 2,954 tonnes Zn, 402 tonnes Cu (1 M Oz AgEq).

ON FINANCING

  • Silver Dollar Resources Inc. announced its common shares are now eligible for “settlement through the Depository Trust Company (“DTC”), a subsidiary of the Depository Trust & Clearing Corp. that manages the electronic clearing and settlement of publicly-traded companies in the United States” (La Joya, Durango).
  • Mammoth Resources Corp. was recently granted conditional approval by the TSX Venture Exchange to close its previously oversubscribed $688.5 K gross proceeds private placement financing (Tenoriba, Chihuahua).
  • Plymouth Realty Capital Corp. intends to undertake a non-brokered private financing for gross proceeds of $2 M. Plymouth previously closed a brokered private placement for $7.4 M in proceeds (Peñasco Quemado, Sonora).
  • Prospero Silver Corp. is proposing to consolidate its outstanding common shares on the basis of three to one. “There are currently 5,747,189 Shares issued and outstanding. Following the Consolidation, there will be approximately 1,915,729 Shares issued and outstanding, subject to treatment of fractional post-Consolidation Shares” (Pachuca Southeast, Hidalgo).
  • Sonoro Gold Corp. has granted incentive stock options to certain directors, officers and consultants of the company to purchase an aggregate of 535 K common shares. (Cerro Caliche, Sonora).
  • Solaris Resources Inc. announced that its common shares have been approved for listing on the Toronto Stock Exchange (La Verde, Michoacan).
  • Bacanora Lithium PLC made a share placement representing US$65 M in gross proceeds (Sonora Lithium, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Discovery Metals Corp. announced the expansion of the higher-grade bulk-tonnage domain at is Cordero project in Chihuahua. Results from 13 diamond drill holes were released, highlighting the next core length intervals: 131.6 m @ 48 gpt Ag, 0.09 gpt Au, 0.5% Pb, 1.1% Zn (118 gpt AgEq) including 37.1 m @ 119 gpt Ag, 0.22 gpt Au, 1.0% Pb, 1.2% Zn (223 gpt AgEq); 85.6 m @ 53 gpt Ag, 0.05 gpt Au, 1.4% Pb, 1.7% Zn (175 gpt AgEq) including 39.9 m @ 93 gpt Ag, 0.08 gpt Au, 2.4% Pb, 3.0% Zn (308 gpt AgEq); 126.1 m @ 40 gpt Ag, 0.10 gpt Au, 0.4% Pb, 1.0% Zn (103 gpt AgEq); 57.6 m @ 41 gpt Ag, 0.11 gpt Au, 0.3% Pb, 1.8% Zn (134 gpt Ag). Drilling has extended the “strike extent of the higher-grade bulk tonnage domain by approximately 300 m along strike across an estimated lateral extent of approximately 400 m”. 
  • Silver Tiger Metals Inc. informed on the discovery of a new mineralized zone on the footwall of the Sooy vein at El Tigre, Sonora. Highlighted core length results comprise 22.2 m @ 1.12 gpt Au, 177 gpt Ag, 0.23% Cu, 1.4% Pb, 2.0% Zn (382 gpt AgEq) including 11.75 m @ 2.02 gpt Au, 305 gpt Ag, 0.39% Cu, 2.3% Pb, 3.6% Zn, which include 6.95 m @ 3.34 gpt Au, 345 gpt Ag, 0.33% Cu, 2.0% Pb, 3.4% Zn. “The decision by the technical team to continue drilling 50 meters past the targeted Sooy Vein has been rewarded by the discovery of a wide zone of high grade mineralization totally unlike the quartz vein ore previously mined at El Tigre”.
  • Gold Resource Corp. released good underground drilling results from its Don David mine in Oaxaca. Highlighted core length intervals comprise 10.85 m @ 9.12 gpt Au, 179 gpt Ag, 0.58% Cu, 3.5% Pb, 7.0% Zn; 11.83 m @ 17.45 gpt Au, 99 gpt Ag, 0.78% Cu, 3.7% Pb, 6.3% Zn; 9.97 m @ 4.43 gpt Au, 88 gpt Ag, 0.35% Cu, 0.8% Pb, 3.2% Zn; 5.87 m @ 1.51 gpt Au, 871 gpt Ag, 0.15% Cu, 0.5% Pb, 1.0% Zn; 3.85 m @ 1.66 gpt Au, 1,046 gpt Ag, 0.14% Cu, 0.3% Pb, 0.4% Zn; 7.06 m @ 0.71 gpt Au, 286 gpt Ag; 9.20 m @ 0.47 gpt Au, 283 gpt Ag.
  • Silver Dollar Resources Inc. completed the compilation and reinterpretation of historical exploration data on the La Joya project in Durango. Additional targets have been defined by similarities in skarn mineralization to La Colorada recent discovery in nearby Zacatecas, and a study in fault kinematics, geophysical interpretation and the elaboration of a 3D geological and mineralization model.
  • Impact Silver Corp. purchased two core drill rigs to accelerate exploration on its Zacualpan property in Estado de Mexico. The company has started a 10,000 meters drill program utilizing a used underground rig already in its possession, a new surface rig and a new underground rig. Multiple targets on both extensions of current mining areas are to be tested, as well as new exploration targets on the San Ramon, Guadalupe, Mina Grande, Cuchara, Manto America and Alacran areas.
  • Endeavour Silver Corp. updated mineral reserve and resources estimates for its properties. Mineral reserves stand at 48.6 M Oz Ag, 472 K Oz Au (86.3 M Oz AgEq), measured and indicated resources at 25.9 M Oz Ag, 222.5 K Oz Au (43.7 M Oz AgEq) and inferred resources at 64.4 M Oz Ag, 283.8 K Oz Au, (87.1 M Oz AgEq).
  • Fabled Silver Gold Corp. released results from the second drill hole of the 8,000 meters campaign at its Santa María project in Chihuahua. Highlighted core length intercepts comprise 6.0 m @ 0.54 gpt Au, 324 gpt Ag including 3.30 m @ 0.90 gpt Au, 561 gpt Ag which includes 1.10 m @ 0.74 gpt Au, 822 gpt Ag and 1.10 m @ 1.06 gpt Au, 621 gpt Ag.
  • GoGold Resources Inc. announced results of drilling at La Trini in Los Ricos North property. Highlighted core length intercepts comprise 11.4 m @ 97 gpt Ag, 0.05 gpt Au, including 0.8 m @ 1,214 gpt Ag, 0.25 gpt Au; 8.5 m @ 197 gpt Ag, 0.08 gpt Au, including 2.3 m @ 506 gpt Ag, 0.08 gpt Au; 23.5 m @ 64 gpt Ag, 0.81 gpt Au, including 2.8 m @ 283 gpt Ag, 3.30 gpt Au. To date, the results of 96 drill holes at La Trini have been released.
  • Sailfish Royalty Corp. updated on the Gavilanes project in Durango. The 13,594 hectares low-sulfidation epithermal project is 25 km east from First Majestic’s San Dimas property. Historic indicated resources comprise 953 K tonnes @ 165 gpt Ag, 0.09 gpt Au, 0.06% Cu, 0.42% Pb, 0.41% Zn (200 gpt AgEq) whereas inferred resources include 5.4 M tonnes @ 125 gpt Ag, 0.12 gpt Au, 0.4% Pb, 0.34% Zn (163 gpt AgEq).
  • Xtierra Inc. released results from drilling at the Victor vein on its Bilbao property in Zacatecas. Highlighted true-width intervals in one hole comprise 3.80 m @ 59 gpt Ag, 2.0% Pb, 1.3% Zn, 0.14% Cu; 8.98 m @ 90 gpt Ag, 3.4% Pb, 3.2% Zn, 0.20% Cu, including 2.09 m @ 175 gpt Ag, 6.1% Pb, 0.7% Zn, 0.58% Cu; 4.15 m @ 131 gpt Ag, 6.0% Pb, 8.5% Zn, 0.18% Cu;1.10 m @ 126 gpt Ag, 6.1% Pb, 3.8% Zn, 0.68% Cu. Another hole returned 1.84 m @ 101 gpt Ag, 6.2% Pb, 2.7% Zn, 0.21% Cu; 3.48 m @ 28 gpt Ag, 1.7% Pb, 0.8% Zn, 0.06% Cu.
  • Azucar Minerals Ltd. released results from one more drill hole at the Porvenir zone of the El Cobre project in Veracruz. Highlighted core length intervals comprise 65.0 m @ 0.26 gpt Au, 0.14% Cu, including 10.0 m @ 0.54 gpt Au, 0.29% Cu; a second interval of 25.5 m @ 0.52 gpt Au, 0.30% Cu. “. Drilling planned for the Porvenir Zone has been completed and future drilling on the project will be planned based on a geologic review currently underway and the receipt of outstanding assay results. In the meantime a surface field work program is planned to better define several targets prior to drill testing”.

ON DEALS AND CORPORATE ISSUES

  • Endeavour Silver Corp. has granted an option to purchase a 100% interest in its Guadalupe y Calvo project in Chihuahua to Ridgestone Mining Inc.. Under the agreement Ridgestone has to pay over four years US$1.5 M in cash and US$1.75 M in shares, plus US$0.75 M in exploration expenses for a total commitment of US$4 M. Endeavour will retain a 2% NSR, with an option by which Ridgestone could buy back the 2% NSR for US$2 M prior to commencement of commercial production.
  • Mako Mining Corp. informed a definitive agreement has been executed with GR Silver Mining Ltd. on the sale of its subsidiary Marlin Gold Mining Ltd., which owns the La Trinidad mine facilities in Sinaloa, currently being reclaimed. The deal includes nine mining concessions covering 104,094.5 hectares adjacent to GR Silver’s properties. Mako will receive US$50 K in cash, a 1% NSR and the reversal of US$9.35 M in unpaid concession taxes. The 1% NSR can be bought at any time for US$2 M.
  • Silvercorp Metals Inc. has acquired 100% interest in the La Yesca project in Nayarit. The 4,700 hectares project has previous geological mapping, stream sediment and soil surveys and 7,649 meters of drilling in 25 widely spaced holes. Highlighted trench sample results comprise 25.6 m @ 420 gpt Ag, 14.3 m @ 389 gpt Ag, 47.6 m @ 295 gpt Ag and 32.9 m @ 161 gpt Ag, all with combined Pb+Zn credits of up to 3.7%. Highlighted core length intercepts comprise 3.3 m @ 744 gpt Ag, 0.1% Pb, 1.4% Zn; 10.0 m @ 977 gpt Ag, 0.2% Pb, 0.6% Zn; 6.5 m @ 725 gpt Ag, 0.5% Pb, 1.8% Zn; 5.9 m @ 293 gpt Ag, 0.2% Pb, 1.4% Zn; 2.4 m @ 823 gpt Ag, 0.3% Pb, 4.0% Zn; 3.0 m @ 718 gpt Ag, 0.2% Pb, 3.34% Zn; 17.0 m @ 252 gpt Ag, 0.8% Pb, 2.1% Zn. Silvercorp obtained control of the project by acquiring the holding company with a cash payment of US$9.25 M in cash and a 45% interest in the managing company shares to the vendors. “A “discovery payment” of up to $30 million calculated on the basis of US$0.20 per ounce of silver resources as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”), is payable by New Infini to the Vendors subject to certain permitting considerations”.
  • Bacanora Lithium PLC. announced that its partner Ganfeng Lithium Co. Ltd. signed a joint venture agreement “in connection with its investment in SLL (“JVA”) following the exercise of its option to increase its stake in SLL from 22.5% to 50% (the “Option”). Completion of the JVA remains conditional upon certain approvals and consents from authorities in the People’s Republic of China”. On a second press release Bacanora informed Ganfeng’s intention to increase its holding in Bacanora, subscribing for gross proceeds of US$31 M. On completion of their investment, Ganfeng will have an ownership level of 28.88%. (Sonora Lithium project, Sonora).
  • SilverCrest Metals Inc. disclosed positive results from a feasibility study for the Las Chispas project in Sonora. The study envisages a 1,250 tpd operation with an initial mine life of 8.5 years, with a base case NPV(5%) of $486.3 M, IRR of 52% and a payback period of one year. An average AISC of $7.07 per Oz AgEq for seven years is among the lowest quartile AISC globally.
  • Almaden Minerals Ltd. provided an update on its intentions for advancing the Ixtaca project in Puebla. Late last year the company was informed that the initial environmental impact assessment on the project did not receive approval from the Mexican federal permitting authority, Secretaría de Medio Ambiente y Recursos Naturales (SEMERNAT).” Almaden remains convinced that the Ixtaca project can be a showcase for modern, responsible mineral development in Mexico. The Company intends to work towards submitting a revised MIA which incorporates additional data presently available to the Company as well as data to be gathered in further field studies”.
  • Magna Gold Corp. announced exploration activities have commenced on its Margarita project in Chihuahua. Magna plans to re-log 5,097 meters of HQ drill core from 35 drill holes, re-sample and sample vein and vein extensions and compile sections and long sections based on the previous drilling. “Magna has contracted topographic map work on the property, as well as the acquisition of Aster satellite images, in preparation for field mapping at Margarita. A survey crew will locate the Margarita drillhole collars to confirm existing data. Field work at Margarita is scheduled to commence in Q1, which will be used to plan a drill campaign that will commence by Q3 2021. The drill campaign will include infill, confirmation and exploration drilling and will be targeted in areas between and down dip from existing drilling”. A second, 2,000 meters phase of drilling is planned in Q3 at La Pima, in Sonora. The drilling is to focus on breccias hosted in limestone. At Los Muertos, also in Sonora, soil and rock chip sampling as well as geology mapping and an induced polarization survey are planned to commence on Q4 2021.
  • Orla Mining Ltd. updated the exploration status of its 163,000 hectares in Mexican properties. A 6,000 meters core drilling program is underway within the Camino Rojo deposit in Zacatecas, and a 5,212 RC drilling campaign was completed in the neighboring Las Miserias, San Tiburcio and Guanamero targets. Nine trenches were excavated at the Las Miserias target, for a total of 140 meters. A directional drilling programmed commenced in Q4 2020 on the down plunge extension of the sulfide zone on the Camino Rojo deposit. A 2,500 meters core drilling program on Fresnillo’s property and integration of the geological resource models with Fresnillo’s drill data (In December 2020 Orla completed a layback agreement with Fresnillo PLC that will allow Orla to expand the Camino Rojo oxide pit onto part of the adjacent Fresnillo’s mining concession. A US$4 M budget has been allocated for these exploration campaigns.
  • Plymouth Realty Capital Corp. received conditional acceptance from the TSX Venture Exchange on its qualifying transaction whereby Plymouth will acquire the Peñasco Quemado (Sonora), Pluton (Durango) and La Frazada (Nayarit) projects from Silver One Resources Inc.. Plymouth is to pay Silver One $6 M in cash and shares as follows: 1.25 M in cash and 4.375 M shares on the closing of the transaction, $750 K in cash 18 months onwards and $500 K in cash 24 months after the closing.

ON SOCIAL RESPONSIBILITY

  • Grupo Mexico’s La Caridad power plant  received the certificate “Great Place to Work”.
  • Minera Peñasquito donated medical equipment to the state government in Zacatecas.

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

On the image below:  Quartz vein from a low sulfidation epithermal system in Sinaloa. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the Third Week of January, 2021

By Jorge Cirett

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

ON MEXICO ISSUES

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

ON EXPLORATION

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

ON MINING

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

ON FINANCING

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

ON RESOURCES AND DEVELOPMENT

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

ON DEALS AND CORPORATE ISSUES

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

ON SOCIAL RESPONSIBILITY

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

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

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

By Jorge Cirett

During the 50th week of the year (December 7th to December 13th, 2020), at least 31 press releases were announced by companies working in Mexico. To note, ten companies posted exploration advances on their properties and seven more published on project development. ON MEXICO ISSUES, a list of eight projects that have changed hands in the last six months include properties in Sonora, Chihuahua, Durango and Zacatecas. The AIMMGM confirmed its International Convention will be held in 2021 in Acapulco, Guerrero (With so many options, Why Acapulco? Why?), as vaccination is likely to have the pandemic under control by then. The proposed law against outsourcing is likely to affect the mining industry in Sonora. The Naica mine (site of the famous Crystals Cave) in Chihuahua is to see activity again.  ON EXPLORATION, in Sonora, Riverside reported trench sampling results at the Cuarentas project; Tocvan Ventures informed RC drilling advances at its Pilar project; Colibri Resource released assays from trench sampling at Evelyn. In Chihuahua, Reyna Silver started drilling at the Guigui project, in the Santa Eulalia district. In Sinaloa, Brigadier Gold updated on the exploration of the Picachos project. In Durango, Mithril Resources released drilling results from Copalquin; Canasil Resources reported on two more drill holes at the Nora project. In Zacatecas, VanGold Mining completed a shaft to the 7th level at its Pinguico project; Defiance Silver commenced its 5,000 m drilling program at San Acacio; Advance Gold defined a new geophysical anomaly at Tabasqueña.  ON MINING, Mexus Gold continues to produce from its heap leach operation at the Santa Elena mine in Sonora. Gatos Silver informed on production on the third quarter. Alamos Gold provided its 2021 gold production guidance. ON FINANCING, First Majestic is to start paying a dividend. Canuc Resources and Oroco Resource closed non-brokered private placements for CAD$1 M and $15.5 M respectively. Alien Metals is to issue 3.4 M shares of no par value. ON RESOURCES AND DEVELOPMENT, GR Silver Mining reported on bulk metallurgical testing at Plomosas, Sinaloa. Sonoro Gold released drilling results from the Cerro Caliche project in Sonora. GoGold Resources released drilling results from La Trini deposit at its Los Ricos North project in Jalisco. Consolidated Zinc continues the plant refurbishment at its Plomosas mine in Chihuahua. Impact Silver is re-interpreting all the historical exploration data gathered at the Real de Zacualpan district in Estado de Mexico. Sierra Metals released a new PEA on the expansion to 2,400 tpd of its Cusi mine, in Chihuahua. Southern Silver Exploration reported results of two deep holes on the South Skarn target of Cerro Las Minitas, Durango.  ON DEALS AND CORPORATE ISSUES, Capstone Mining signed a precious metals purchase agreement with Wheaton Precious Metals International. ON SOCIAL RESPONSIBILITY, Grupo Peñoles, Fresnillo PLC, Peña Colorada, Minera Media Luna, Almaden Minerals and Esperanza Silver informed on programs to aid communities near their operations.

ON MEXICO ISSUES

  • Projects that have changed hands in the second half of the year include El Picacho (Sonora) by Silver Crest, MVZ within El Pajarito project (Chihuahua) by Li-ion Graphite, Juliana (Sonora) by Tarachi Gold, Magistral de Oro tailings (Durango) by Tarachi Gold, Margarita (Chihuahua) by Magna Gold, La Sanguijuela and Cerro Gordo (Jalisco) by Endeavour Silver, Lucita (Zacatecas) by Defiance Silver and Santa María (Chihuahua) by Fabled Silver.
  • The AIMMGM (Asociación de Ingenieros de Minas, Metalurgistas y Geólogos de México) announced that thanks to the appearance of the Covid-19 vaccine, the next International convention sponsored by the association is to be held in Acapulco, Guerrero, in October 19-22 of 2021.
  • Coparmex Sonora (Confederación Patronal de la República Mexicana – Sonora) stated that the proposed law against outsourcing is to affect the mining industry on the state, as 40% of its work force is under this scheme.
  • The Naica mine in Chihuahua (home to the famous Cave of Crystals), which closed in 2015, is to see miners again, as a group of twenty has been contracted to start working again. The mine is also to supply water from its underground workings to irrigate 200 hectares of farm land.

ON EXPLORATION

  • Mithril Resources Ltd. released drilling results from its Copalquin project in Durango. Highlighted core-length intercepts comprise 9.35 m @ 7.84 gpt Au, 138 gpt Ag (including 4.0 m @ 16.44 gpt Au, 287 gpt Ag) at El Refugio; 14.85 m @ 0.85 gpt Au, 48 gpt Ag (including 1.30 m @ 5.07 gpt Au, 309 gpt Ag) and 9.78 m @ 0.85 gpt Au, 13 gpt Ag; 11.70 m @ 1.16 gpt Au, 70 gpt Ag (including 1.0 m @ 7.17 gpt Au, 236 gpt Ag; 2.90 m @ 1.93 gpt Au, 216 gpt Ag; 5.28 m @ 0.39 gpt Au, 26 gpt Ag; 10.15 m @ 0.55 gpt Au, 16 gpt Ag (including 1.0 m @ 3.75 gpt Au, 70 gpt Ag.
  • Riverside Resources Inc. and Hochschild Mining reported trench sampling results at its Cuarentas project in Sonora. Highlighted trench sampling comprises 12.5 m @ 0.59 gpt Au; 12.5 m @ 0.33 gpt Au; 25 m @ 0.27 gtp Au; 22.5 m @ 0.17 gpt Au; 6.0 m @ 0.24 gpt Au at Santa Rosalía. Channel sample results from the Centro target include 1.0 m @ 2.23 gpt Au; 1.5 m @ 1.01 gpt Au; 1.2 m @ 0.53 gpt Au.
  • VanGold Mining Corp. has completed clearing the Pinguico shaft to adit level 7, at El Pinguico mine, Zacatecas. The company expects to be able to sample the lower portion of an underground stockpile (or backfill) that the Mexican Geological Survey (SGM) measured at 149 K tonnes @ 1.66 gpt Au, 143 gpt Ag.
  • Tocvan Ventures Corp. informed more than 400 m of reverse circulation drilling in three holes have been sunk at its Pilar project in Sonora. Results are pending and expected early in the New Year.
  • Defiance Silver Corp. commenced drilling at its San Acacio project in Zacatecas. The 5,000 m program is to focus on the Veta Grande vein system in hanging wall structural offsets and the Veta Grande vein system at depth.
  • Reyna Silver Corp. started drilling at its Gugui project in the Santa Eulalia district of Chihuahua. “Santa Eulalia is Mexico’s largest Carbonate Replacement Deposit (CRD) but despite over 300 years of continuous mining activity, the intrusive source for the system, which is Reyna’s initial target focus, has not been found…….. Targeting is based on a combination of geology, geochemistry, geophysics and hyperspectral satellite imagery analysis”. The initial drilling is to comprise 10,000 m.
  • Canasil Resources Inc. released results from two more drill holes on the Candy vein at its  Nora project in Durango. True width (TW) intervals comprise 0.72 m @ 1.46 gpt Au, 7 gpt Ag in one hole, and 2.40 m @ 4.78 gpt Au, 351 gpt Ag, 0.5% Pb+Zn (including 0.45 m @ 15.60 gpt Au, 561 gpt Ag, 0.5% Pb+Zn); 0.45 m @ 7.13 gpt Au, 639 gpt Ag, 0.7% Pb+Zn; 1.49 m @ 11.86 gpt Au, 378 gpt Ag, 0.21% Pb+Zn; 0.45 m @ 36.70 gpt Au, 1,010 gpt Ag, 0.35% Pb+Zn.
  • Colibri Resource Corp. released further assay results from the trenching program at its Evelyn project in Sonora. Twenty two out of 95 samples  returned more than 0.1 gpt Au, and 6 were greater than 1.0 gpt Au, peaking at 17.75 gpt Au. Areas with good gold values include El Sahuaro, Cerro Rojo and Central Evelyin targets.
  • Brigadier Gold Ltd. updated in the exploration at its Picachos project in Sinaloa. “The 3,954 hectare Picachos Property is centered over the historic “Viva Zapata” National Mineral Reserve, Sinaloa, Mexico.  It overlaps two mineralized systems, a porphyry copper‐molybdenum system hosted by a Paleocene granite‐granodiorite intrusive complex, and a gold‐silver vein complex comprised of both east‐northeasterly trending veins (La Cocolmeca Vein System) and northwesterly trending veins (El Placer System)”. The company has established its community relations, repaired roads, upgraded the water supply, built a core processing facility, drill tested the SW of the Cocolmeca vein system and discovered several new veins by trenching on historic soil anomalies.
  • Advance Gold Corp.  informed on results of a newly completed geophysical study at its Tabasqueña project in Zacatecas. The induced polarization survey delineated a new large chargeability anomaly to the west of known anomalies.

ON MINING

  • Mexus Gold US. announced the gold production from its newly completed leach pad at its Santa Elena mine in Sonora is to be sold before the end of the year.
  • Gatos Silver Inc. reported third quarter 2020 results. At the Cerro Los Gatos mine in Chihuahua, 164.5 K tonnes were mined to produce 6,097 tonnes of lead concentrate @ 5,726 gpt Ag, 6.82 gpt Au, 59.71% Pb, 9.69% Zn and 7,980 tonnes of zinc concentrate @ 572 gpt Ag, 0.52 gpt Au, 1.60% Pb, 56.46% Zn. Recoveries stood at 85.1% Ag, 87.3% Pb, 73.9% Zn. The mine was recommissioned in late May from the pandemic lockdown with a monthly production rate of 1,750 tpd.
  • Alamos Gold Inc. provided guidance for gold production and costs for 2021, including from its Mexican operations. At Mulatos, in Sonora, Alamos is to produce 150-160 K Oz Au at total cash cost of $840-890 per Oz Au and Mine-site-all-in-sustaining-cost of $1,060-1,110 per Oz Au. The Mulatos district is to produce 140-150 K Oz Au in 2020, at cash cost $840-890 per Oz Au and Mine-site AISC of $940-980 per Oz Au, at an operating rate of 22,000 tpd @ 0.9-1.1 gpt Au, recovering 60% of gold. A total of $9 M in exploration is to be spent at Mulatos in 2021.

ON FINANCING

  • First Majestic Silver Corp. announced the company will start paying a dividend of 1% net revenues commencing after the completion of the first quarter 2021 (San Dimas, Durango).
  • Canuc Resources Corp. closed a non-brokered private placement for CAD$1.02 M in gross proceeds (San Javier silver -gold, Sonora).
  • Alien Metals Ltd. announced an incoming share issue of 3.4 M units of no par value (Los Campos and San Celso, Zacatecas).
  • Oroco Resource Corp. closed a non-brokered private placement for gross proceeds of $15.5 M (Santo Tomás, Sinaloa).

ON RESOURCES AND DEVELOPMENT

  • GR Silver Mining Ltd.  reported results of bulk metallurgical testing at its Plomosas project in Sinaloa. The 2,700 tonnes sample was excavated from a representative zone of the San Juan area underground development – San Juan vein & breccia, and sent for off-site processing. The samples produced a concentrate that averaged 15,147 gpt Ag and 46.2 gpt Au (recovery rates were not mentioned).
  • Sonoro Gold Corp. released assay results from the ongoing drilling program at its Sonoro project in Sonora. Highlighted core length intercepts comprise 16.25 m @ 0.67 gpt Au, 5 gpt Ag; 10.70 m @ 0.29 gpt Au, 4 gpt Ag; 20.95 m @ 0.50 gpt Au, 25 gpt Ag; 21.0 m @ 0.88 gpt Au, 18 gpt Ag (including 2.90 m @ 3.86 gpt Au, 48 gpt Ag); 9.50 m @ 0.40 gpt Au, 2 gpt Ag, at the El Rincón-Veta de Oro zone, and 12.19 m @ 0.35 gpt Au; 45.72 m @ 0.36 gpt Au; 4.57 m @ 0.66 gpt Au; 28.96 m @ 0.22 gpt Au; 12.19 m @ 0.45 gpt Au; 21.33 m @ 0.58 gpt Au; 24.38 m @ 0.75 gpt Au; 21.34 m @ 0.81 gpt Au (including 6.10 m @ 2.03 gpt Au) at the Buena Suerte and Japoneses zones.  
  • GoGold Resources Inc. released additional assays from drilling at La Trini deposit, part of the Los Ricos North project in Jalisco. Core length intercepts comprise 23.1 m @ 0.04 gpt Au, 44 gpt Ag; 29.5 m @ 0.69 gpt Au, 91 gpt Ag (including 16.7 m @ 1.18 gpt Ag, 141 gpt Ag that include 6.3 m @ 2.66 gpt Au, 320 gpt Ag); 36.7 m @ 1.00 gpt Au, 69 gpt Ag; 61.4 m @ 1.06 gpt Au, 124 gpt Ag (including 13.9 m @ 4.29 gpt Au, 477 gpt Ag that include 3.4 m @ 14.28 gpt Au, 1,694 gpt Ag); 15.6 m @ 0.11 gpt Au, 93 gpt Ag; 44.1 m @ 0.56 gpt Au, 46 gpt Ag (including 6.4 m @ 2.18 gpt Au, 108 gpt Ag); 33.0 m @ 1.24 gpt Au, 68 gpt Ag (including 6.0 m @ 4.94 gpt Au, 218 gpt Ag).
  • Consolidated Zinc Ltd. announced the plant refurbishment of its Plomosas mine in Chihuahua is on time and on budget. The primary ball mill has been delivered to site, the crushing circuit dry testing has been completed, flotation cells are in the purchasing stage and the tailings dam, construction is due to commence.
  • Impact Silver Corp. contracted a consultant to re-interpret data “from extensive historic geophysical surveys carried out over the southern portions of the large Royal Mines of Zacualpan Project in central Mexico. This area hosts the Capire open pit silver deposit, the Manto America bulk tonnage gold target and many other exploration areas. The historic data sets include IP (Inverse Polarization), airborne magnetometer and EM (electromagnetics), radiometric and ground gravity surveys that were carried out by a previous operator in the 1990’s”.
  • Sierra Metals Inc. reported results from a PEA (preliminary economic assessment) on the expansion of its Cusi mine, Chihuahua. The report sets an after-tax net present value (NPV) of US$81 Million at an 8% discount rate assuming a long term silver price of US$20/Oz, envisaging the increase of production from 1,200 to 2,400 tpd, with an NPV (@ 8%) of US$28.1 M, and IRR of 46.8%, with a mine life of 13 years, processing ore @ 127.2 gpt Ag, 0.12 gpt Au, 0.48% Zn, 0.34% Pb to produce 33.4 M Oz Ag.   The expected net after-tax cash flow is US$134 M.
  • Southern Silver Exploration Corp. reported assay results from its 10,000 m core drilling program on Cerro Las Minitas, Durango. The two holes reported are from the South Skarn target, with highlighted true width (tw) intervals comprising 2.7 m @ 511 gpt Ag 0.1 gpt Au, 0.13% Cu, 5.0% Pb, 3.7% Zn (including 0.6 m @ 902 gpt Ag, 0.05 gpt Au, 0.16% Cu, 7.8% Pb, 8.4% Zn); 1.6 m @ 182 gpt Ag, 0.23 gpt Au, 0.21% Cu, 4.4% Pb, 4.1% Zn; 0.9 m @ 247 gpt Ag, 0.19 gpt Au, 0.07% Cu, 4.7% Pb, 1.2% Zn; 3.3 m @ 304 gpt Ag, 0.11 gpt Au, 0.18% Cu, 4.8% Pb, 1.9% Zn (including 0.6 m @ 607 gpt Ag, 0.15 gpt Au, 0.49% Cu, 11.0% Pb, 3.4% Zn); 10.4 m @ 172 gpt Ag, 0.08 gpt Au, 0.15% Cu, 3.8% Pb, 3.7% Zn (including 5.8 m @ 286 gpt Ag, 0.11 gpt Au, 0.27% Cu, 6.4% Pb, 5.8% Zn); 1.2 m @ 303 gpt Ag, 0.05 gpt Au, 0.02% Cu, 7.1% Pb, 5.8% Zn.

 ON DEALS AND CORPORATE ISSUES

  • Capstone Mining Corp. entered into a definitive precious metals purchase agreement with Wheaton Precious Metals International Ltd.. Wheaton will pay an upfront cash consideration of $150 M for 50% of the silver production until 10 M Oz have been delivered, thereafter dropping to 33% of silver production for the life of mine from the Capstone’s Cozamin Mine in Zacatecas.

ON SOCIAL RESPONSIBILITY

  • Grupo Peñoles donated 30 ventilators, 35 ventilator circuits and more than 90 thousand face masks in Chihuahua.
  • The Mining Fund provided resources for a water well in Zacatecas.
  • Fresnillo PLC informed on its efforts aiding on the recovery and promotion of wildlife in Zacatecas.
  • Peña Colorada, Televisa and the Mexican Bank association are sponsoring scholarships for 121 students in Colima.
  • Minera Media Luna (Torex Gold) funded the asphalting of streets of communities in Cocula, Guerrero.
  • Almaden Minerals informed that an “irrigation dam developed by the Company in partnership with the Federal Government water authority (“CONAGUA”) and a local irrigation group from the community of Zacatepec, is now in operation”(in Puebla).
  • Esperanza Silver intends to develop the Esperanza project in Morelos in a sustainable way with social inclusion.

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

On the image below: Argillic alteration at Villa de Reyes, San Luis Potosí. Picture by Jorge Cirett.

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

By Jorge Cirett

During the 48th week of the year (November 23rd to November 29th, 2020), at least 22 press releases were announced by companies working in Mexico. To note, seven companies posted exploration advances on their properties and seven more published on project development. ON MEXICO ISSUES, Mining concessions surface has been reduced by 21% in this federal administration. Camimex delivered its “Cascos de Plata” awards. The COVID pandemic has accelerated the digital transformation in mining. ON EXPLORATION, in Sonora, Silver Viper informed on the status of exploration at its La Virginia project; Tarachi Gold released high-grade results from drilling at La Dura, on its Tarachi project. In Chihuahua, Reyna Silver has received drill permits for Guigui. In Sinaloa, GR Silver delineated a new mineralized zone at Plomosas; Brigadier Gold released high-grade results from the first holes at Picachos. Vizsla released assays from the first hole at the Agüita Zarca prospect in Panuco. In Puebla, Almaden Minerals reported on exploration of the SE zone at Ixtaca.  ON MINING, Impact Silver released third quarter financial results. Telson Mining began to send ore from Tahuehueto to a toll mill. ON FINANCING, Candente Gold closed a financing round raising $250 K. Alien Metals raised £2.5 M. ON RESOURCES AND DEVELOPMENT, Great Panther Mining updated the mineral resource estimate at its Guanajuato mine Complex. Minera Alamos has received the last significant permit to start plant construction at La Fortuna in Durango. Prime Mining mobilized the first rig to Los Reyes, Sinaloa. Sonoro Gold released results from 20 more drill holes at Cerro Caliche, Sonora. Premier Gold Mines reported results from delineation drilling at Mercedes, Sonora. Discovery Metals informed on drilling targeting bulk tonnage and high-grade veins at Cordero, Chihuahua. Orla Mining informed on the start of earth-moving activities at Camino Rojo, Zacatecas.  ON DEALS AND CORPORATE ISSUES, Candente gold is changing name to Xali Gold Corporation. Candelaria Mining sold a 0.5% royalty on production from Pinos, Zacatecas. ON SOCIAL RESPONSIBILITY, Peñoles and Fresnillo PLC informed on programs to aid communities near their operations. Newmont informed on a plan to achieve zero-emissions by 2050.

ON MEXICO ISSUES

  • The current federal government reduced by 21% the surface under mining concessions. This as a result of a strict review on the concessions current at the start of the federal administration, and the denial to issue new titles by the president.
  • Camimex (Cámara Minera de México) delivered the “Cascos de Plata” (Silver hard hats) awards to the six mining units with the best safety records in Mexico. The awards went to Agnico Eagle Mexico, Grupo Mexico’s La Caridad, America’s Gold & Silver Cosalá, Velardeña (Peñoles), Grupo Mexico’s Planta ESDE and Grupo Mexico’s Refinería Electrolítica de Zinc.
  • Mining companies state the COVID pandemic has accelerated the digital transformation and advanced automatization.

ON EXPLORATION

  • GR Silver Mining Ltd. Delineated a new mineralized zone, Yecora, from drilling in the San Juan area of its Plomosas project in Sinaloa. Highlighted results comprise 5.5 m @ 264 gpt Ag, 0.4 gpt Au, 0.3% Pb, 0.6% Zn; 19.0 m @ 49 gpt Ag, 1.8 gpt Au, 0.8% Pb, 1.4% Zn; 25.2 m @ 82 gpt Ag, 0.5 gpt Au, 0.9% Pb, 0.5% Zn; 3.2 m @ 27 gpt Ag, 0.3 gpt Au, 3.0% Pb, 11.4% Zn; 7.1 m @ 7.5% Zn, 2.4% Pb, 0.9 gpt Au; 3.3 m @ 11.3% Zn; 0.4 m @ 10.2 gpt Au, 2.1% Zn. “The San Juan Trend now extends for at least 2 km along strike, consisting of at least six mapped veins: San Juan, La Colorada, Yecora, Loma Dorada, La Odisea and San Francisco”.
  • Silver Viper Minerals Corp. informed on exploration at its La Virginia project in Sonora. The property was previously explored by Pan American Silver and Minefinders which sunk 188 drill holes for a total of 52,000 m of diamond drilling. Silver Viper acquired the project in 2018, starting by drilling gaps in the Las Huatas and Convirginia zones, and sunk five holes in a new area, El Rubi, where a new discovery was made in a zone with quartz veins, stockworks and breccias. In 2019 most work was a follow-up on El Rubi, with mapping and rock sampling, with a second drill campaign commencing by the end of that year that now has more than 15,000 m drilled. The company notes that hole LV20-245 (the last released, with 110 m @ 38 gpt Ag, 0.76 gpt Au) drilled 100 m west of El Rubi is a second discovery, showing the potential for open pit mining at the zone.
  • Reyna Silver Corp. has received drill permits for the Guigui project in Chihuahua. “The Guigui Project is located in the heart of the Santa Eulalia Mining District, home to Mexico’s largest Carbonate Replacement Deposit (CRD). The Santa Eulalia Mining District has produced 510 M Oz of silver, 4.2 MT of lead, 3.6 MT of zinc, at average grades of 310 g/t Ag, 8.2% Pb and 7.1% Zn.
  • Brigadier Gold Ltd. released results from the first three diamond holes of a 5,000 m program at its 3,954 hectares Picachos property on the Rosario district in Sinaloa. The 18th hole is being drilled, with the first 14 testing 225 m of strike length on the San Agustin vein and the rest now testing Los Tejones. Highlighted core length intercepts comprise 7 m @ 7.45 gpt Au, 51 gpt Ag (including 1 m @ 45.63 gpt Au); 1 m @ 1.33 gpt Au, 22 gpt Ag; 4.5 m @ 2.89 gpt Au, 50 gpt Ag (including 2 m @ 6.12 gpt Au, 52 gpt Ag); 2 m @ 2.71 gpt Au, 24 gpt Ag. Trench sampling returned 7 m @ 0.39 gpt Au, 53 gpt Ag; 1.5 m @ 7.53 gpt Au, 113 gpt Ag; 1.55 m @ 15.49 gpt Au, 109 gpt Ag (including 0.35 m @ 66.36 gpt Au, 99 gpt Ag); 1 m @ 3.21 gpt Au, 184 gpt Ag; 5 m @ 4.89 gpt Au, 67 gpt Ag.   
  • Tarachi Gold Corp. released results from underground diamond drill holes at La Dura mine on the Jabali concession of the Tarachi project in Sonora. Highlighted core length intercepts comprise 7.0 m @ 2.30 gpt Au; 14.5 m @ 5.49 gpt Au (including 7.0 m @ 9.67 gpt Au); 8.0 m @ 0.31 gpt Au; 20.1 m @ 4.54 gpt Au (including 10.0 m @ 7.48 gpt Au). Mineralization at La Dura is defined by a series of steeply dipping crackle brecciated quartz veins in dacitic volcanic rocks.
  • Vizsla Resources Corp. released results from the first hole drilled at the Agüita Zarca prospect of the Cordon de Oro vein at its Panuco project in Sinaloa. The drill hole intercepted core length intercepts of 18.15 m @ 118 gpt Ag, 3.71 Au (457 gpt AgEq), including 5.95 m @ 244 gpt Ag, 10.49 gpt Au (1,208 gpt AgEq). Directly above this intercept there is a trench channel sampling that returned 0.49 gpt Au, 161 gpt Ag (197 gpt AgEq).
  • Almaden Minerals Ltd. reported results from initial surface sampling of veins discovered in the Southeast Alteration Zone of the Ixtaca project in Puebla. These veins were discovered while mapping a clay alteration zone in volcanic rocks, and although not containing precious metals, show high values of trace elements for shallow epithermal systems.

ON MINING

  • Impact Silver Corp. released third quarter 2020 financial results. Average mill feed was 166 gpt Ag. “Silver production year to date 2020 was only down 4% compared to 2019 at 462,231 ounces despite the COVID-19 official shutdown required by Mexican government from April to June 2020”. Cash at the end of the period was $17.4 M.
  • Telson Mining Corp. has begun to send ore from its Tahuehueto project in Durango to the Atocha toll beneficiation plant. To date 3,000 tonnes have been delivered, of 3,500 tonnes on the current program. Telson informed that it is waiting for the final financing to finish the construction of a 1,000 tonnes per day plant at Tahuehueto.

ON FINANCING

  • Candente Gold Corp. closed the non-brokered private placement previously announced, raising a total of $200 K (El Oro, Estado de México).
  • Alien Metals Ltd. informed on the oversubscription of a financing placement that raised £2.5 M in gross proceeds.

ON RESOURCES AND DEVELOPMENT

  • Great Panther Mining Ltd.  updated the mineral resource estimate at its Guanajuato mine Complex, to July 31, 2020. The complex is comprised by the Guanajuato and San Ignacio underground mines and the 1,000 tpd Cata plant. The estimate includes 19,913 m of drilling in 199 holes since the previous resource calculation. The total resource comprises 821.8 K tonnes @ 199 gpt Ag, 2.07 gpt Au in the measured and indicated category and 1,453 K tonnes @ 185 gpt Ag, 2.25 gpt Au in the inferred category, containing 5.24 M Oz Ag, 54,693 Oz Au and 8.66 M Oz Ag, 105,219 Oz Au respectively. The company is working with permitting authorities to expand the capacity of the tailings storage facility, to extend operations beyond January 2021.
  • Minera Alamos Inc. informed the company has received the approval of the MIA (Manifestación de Impacto Ambiental or Environmental Impact Statement) from SEMARNAT for its La Fortuna project in Durango. The company possesses all the key federal approvals necessary for a 2,000 tonnes per day mine and plant construction.
  • Prime Mining Corp. has mobilized the first of at least two rigs for the incoming 10,000 m drill campaign at its Los Reyes project in Sinaloa. Furthermore, recent trench results were released, including 36 m @ 2.12 gpt Au, 19 gpt Ag; 9.0 m @ 0.43 gpt Au, 16 gpt Ag; 13.5 m @ 0.92 gpt Au, 31 gpt Ag; 33 m @ 1.47 gpt Au, 22 gpt Ag; 25.5 m @ 3.51 gpt Au, 32 gpt Ag; 51 m @ 1.37 gpt Au, 132 gpt Ag. Re-logging of core has found that adularia appears to be vertically zoned, which might aid in targeting high-grade zones.
  • Sonoro Gold Corp. reported results from 20 additional reverse circulation (RC) holes at its Cerro Caliche project in Sonora. Highlighted results comprise 45.72 m @ 0.97 gpt Au, 4 gpt Ag; 6.09 m @ 3.99 gpt Au, 9 gpt Ag; 1.52 m @ 7.80 gpt Au, 15 gpt Ag; 9.14 m @ 0.46 gpt Au, 12 gpt Ag; 10.67 m @ 0.96 gpt Au, 13 gpt Au; 13.72 m @ 0.30 gpt Au; 12.19 m @ 0.94 gpt Au, 3 gpt Ag; 1.52 m @ 2.26 gpt Au, 34 gpt Ag; 27.43 m @ 0.48 gpt Au, 1 gpt Ag; 16.76 m @ 0.33 gpt Au, 6 gpt Ag; 4.57 m @ 0.54 gpt Au, 6 gpt Ag; 9.15 m @ 0.54 gpt Au, 6 gpt Ag; 4.57 m @ 1.03 gpt Au, 6 gpt Ag; 1.52 m @ 2.64 gpt Au, 6 gpt Ag; 13.71 m @ 0.36 gpt Au; 19.81 m @ 0.57 gpt Au, 5 gpt Ag; 6.1 m @ 0.66 gpt Au, 6 gpt Ag; 6.1 m @ 0.46 gpt Au, 7 gpt Ag; 15.24 m @ 0.45 gpt Au, 3 gpt Ag.
  • Premier Gold Mines Ltd. reported on results from its delineation core drilling campaign at its Mercedes mine in Sonora. Highlighted true width results comprise 12.7 m @ 10.17 gpt Au, 294 gpt Ag; 8.1 m @ 7.49 gpt Au, 57 gpt Ag; 2.8 m @ 5.29 gpt Au, 30 gpt Ag at Marianas, 4.2 m @ 10.03 gpt Au, 119 gpt Ag; 2.3 m @ 5.31 gpt Au, 131 gpt Ag at San Martin and 10.2 m @ 7.12 gpt Au, 26 gpt Ag; 56.6 m @ 2.99 gpt Au, 12 gpt Ag (including 12.2 m @ 4.47 gpt Au, 21 gpt Ag); 14.2 m @ 4.86 gpt Au, 31 gpt Ag; 13.2 m @ 6.83 gpt Au, 27 gpt Ag at Diluvio stockwork zone. Marianas is the down plunge of the main Mercedes mine trend, composed of three main veins: Main, West and East. The San Martin vein was discovered by drilling in 2019, and Diluvio West consists of a vein stockwork system with a broad envelope.
  • Discovery Metals Corp. informed it has now completed 43,640 m of drilling in 111 holes as part of its expanded 55,000 m program at Cordero, Chihuahua. The focus has been on bulk tonnage targets and high-grade veins. Bulk tonnage targeting shifted from the North Corridor to the South Corridor, where broad zones of mineralization have been intercepted. On high-grade veins, the Todos Santos vein trend has been extended to 1.5 km, and the Porcinera vein to 350 m, both with high-grade intercepts.
  • Orla Mining Ltd. announced the start of earth moving activities at its Camino Rojo Oxide project in Zacatecas. “All permit conditions have been satisfied, including placing of an environmental bond, for site activities to begin. Major contracts for earth moving and civil works have been awarded and detailed engineering is 90% complete. Current activities include mobilization of the earthworks contractor, installation of the construction camp and offices, flora and fauna rescue, as well as site fence erection”.

ON DEALS AND CORPORATE ISSUES

  • Candente Gold Corp. announced the decision to change name to Xali Gold Corp.
  • Candelaria Mining Corp. sold a 0.5% NSR on production from the Pinos project, in Zacatecas, to Empress Royalty Corp. for US$750 K. Empress also purchased an additional 0.5% NSR from a previous royalty holder. The Pinos project is subject to NSR royalties of 2.0%.

ON SOCIAL RESPONSIBILITY

  • Industrias Peñoles is working along with the Teloloapan municipality museum, aiding with an augmented reality presentation in 3D of mining and metallurgic processes, that can be accessed in smart phones and tablets.
  • Fresnillo PLC reforested 7 hectares in Caborca and the surrounding communities during the last four years.
  • Newmont plans to reduce emission of CO2 by 30% and then achieve the zero-emissions target by 2050.

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

On the image below: Sulfide rich mantos in core from Cerro San Pedro, San Luis Potosí. Picture by Jorge Cirett.

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

197 - copiaBy Jorge Cirett

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

ON MEXICO ISSUES

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

ON EXPLORATION

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

ON MINING

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

ON FINANCING

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

ON RESOURCES AND DEVELOPMENT

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

ON DEALS AND CORPORATE ISSUES

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

ON SOCIAL RESPONSIBILITY

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

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

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

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

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By Jorge Cirett

During the 22nd week of the year (May 24th to May 31st, 2020), at least 36 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, Francisco Quiroga, subsecretary of mining had a very active week by reviewing personally the health protocols put in place by mining companies in several states, as well as being present on the installation of regional mining committees in a handful of states, before the full re-start of mining operations allowed by the government. BNamericas presented a list of 24 mining projects going ahead in Mexico from 2020 to 2026, with a capital investment of US$7,450 M. Mining companies scrambled on the restart of operations permitted by the government with the inclusion of the industry in the category of essential activities that can operate during the Coronavirus emergency. ON EXPLORATION, in Sonora, Ridgestone Mining resumed activities at its Rebeico project. In Chihuahua, Kootenay Silver released results from drilling at its Columba project; Mammoth Resources announced Centerra is returning for exploration work at its Tenoriba project. In Nayarit, Candente Gold is to rehabilitate underground workings to advance its El Dorado project. In Zacatecas, Defiance Silver delineated several targets at the San Acacio property. ON MINING, Sierra Metals, Impact Silver, Mexus Gold, Fortuna Silver, Gold Resource, Endeavour Silver and Aura Minerals announced the recommencement of activities, following the government easing of restrictions on mining. Impact Silver and Discovery Metals reported first quarter 2020 results. GR Silver Mining is postponing the filing of first quarter 2020 results, under the blanket relief granted by the regulatory authorities in Canada. ON FINANCING, in a pretty busy week, 16 companies made announcements related to their financing.  Canasil Resources granted 1.75 M options. Orex Minerals intends to raise up $2 M. Silver Tiger Metals is now trading on the OTCQB quotation system in the US. Vangold Mining accelerated a warrant bonus program in connection with its 2019 private placement. Equinox Gold saw warrants exercised for $145 M. Southern Silver Exploration extended the expiry date of some warrants for two years. Ridgestone Mining is now listed in the Frankfurt Stock Exchange. Aztec Mining engaged a Swiss investor relations firm for European exposure. Vizsla Resources is pursuing a financing round for C$4 M. DynaResources closed a financing agreement for $3.9 M. Minaurum Gold closed its private placement grossing $5 M. Telson closed the second tranche of its private placement for $196.6 K. Golden Tag Announced a non-brokered private placement for up to $1.12 M. Solaris Resources raised C$20 M. Mammoth Resources announced a private placement for up to $131 K. Consolidated Zn intends to raise up to $1.73 M.   ON RESOURCES AND DEVELOPMENT, Mexican Gold Mining is working on the PEA for its Las Minas project in Veracruz. Golden Minerals filed the PEA on Rodeo, Durango. Bacanora Lithium updated on activities to further advance its Sonora Lithium project. Discovery Metals has completed 15,000 m of its 30,000 m phase 1 drill program at its Cordero project in Chihuahua. ON DEALS AND CORPORATE ISSUES, Mithril completed the acquisition of Sun Minerals, obtaining thus the Copalquin project in Durango. Candente Gold amended the memorandum of understanding to acquire the El Dorado property and the SDA mill in Nayarit. Sonora Metals published and filed a new version of the Cerro Caliche development report, as requested by the British Columbia Securities Commission. ON SOCIAL RESPONSIBILITY. Minera Peña Colorada, Grupo Mexico, Fresnillo PLC, Minera Real Bonanza and the mining industry in Sonora  informed on donations and work realized to aid communities, mainly on subjects related to the Coronavirus emergency, like medical supplies and equipment, comprising also a large array of investments and measures that benefit the mining communities.

ON MEXICO ISSUES

  • Francisco Quiroga, subsecretary of Mining, personally verified the application of safety protocols to re-start operations in mines. Quiroga visited Agnico Eagle’s Pinos Altos, Grupo Mexico’s Santa Barbara and Frisco’s Concheño mines in Chihuahua. He will also review protocols in Durango, Zacatecas and Coahuila.
  • The fourth virtual personnel hiring session was held by La Cantera Desarrollos Mineros in Zacatecas.
  • The silver price has seen its strongest monthly growth in almost seven years. Prices have reached up to $17.69 per ounce.
  • The Regional Committee for the Development of Mining Zones was constituted in Durango.
  • Mining Companies are to re-start operations on June 1, 2020. Dozens of mining companies prepare to re-commence mining and processing activities, reviewing its health and work protocols.
  • The Regional Committee for the Development of Mining Zones was installed in Zacatecas. The governor Alejandro Tello, the Camimex president, Fernando Alanís and the Mining subsecretary Francisco Quiroga were in the event that also saw the presence of representatives of Fresnillo PLC, Industrias Peñoles, Minera Frsico, Capstone Gold, Excellon Resources, Newmont, Aura Minerals, Arian Silver, Grupo Mexico, Impulsora Minera Santacruz, First Majestic, Grupo Minera Candelaria, Minera Camino Rojo, and Minas de San Nicolás.
  • The subsecretary of Mining Francisco Quiroga reviewed the sanitary procedures of Minera El Roble.
  • Peñasquito restarted operations in Zacatecas, after the review of the health protocol by Francisco Quiroga, subsecretary of mining.
  • Bnamericas presented a list of mining projects going forward in 2020-2026 with a capital investment of US$7,450 M, notwithstanding the pandemic induced stoppages. A total of 24 projects would increase the annual production by 1.5 M Oz Au, 33 M Oz Ag and 247 K tonnes Cu to 2026.Bnamericas table, Mining Projects 2020-2026

ON EXPLORATION

  • Kootenay Silver Inc. released results from four more drill holes at its Columba project in Chihuahua. Highlighted core length intervals comprise: 1.06 m @ 259 gpt Ag; 7.0 m @ 124 gpt Ag (including 3.6 m @ 197 gpt Ag); 2.8 m @ 762 gpt Ag (including, 1.0 m @ 2,010 gpt Ag); 10.2 m @ 68 gpt Ag (including 0.65 m @ 368 gpt Ag); 4.4 m @ 209 gpt Ag (including 1.4 m @ 484 gpt Ag); 38 m @ 50 gpt Ag (including 0.45 m @ 486 gpt Ag); 6.0 m @ 317 gpt Ag (including 2.0 m @ 865 gpt Ag); 36 m @ 72 gpt Ag (including 1.1 m @ 769 gpt Ag and 4.36 m @ 317 gpt Ag). Drill results show continuity and high grades along nearly 600 meters of strike on the F Vein at depths from 15 to 200 meters.
  • Ridgestone Mining Inc. has resumed activities at its Rebeico project in Sonora. “Core samples from the first three drill holes at the New Year Zone, which encountered abundant sulphides, have been sent to ALS Chemex in Hermosillo for assaying”.
  • Mammoth Resources Corp. announced the return of Centerra Gold Inc. personnel to Mammoth’s Tenoriba project in Chihuahua.
  • Candente Gold Corp. is planning underground work on the El Dorado project in Las Minitas, Nayarit. Rehabilitation of underground workings is to aid in the construction of a 3-D model of unmined blocks and vein structure, to guide potential mining/extraction operations. Drill data from the 2010-2011 campaign would be also incorporated.
  • Defiance Silver Corp. announced the delineation of multiple targets at is San Acacio project in Zacatecas, which include a 1.3 Km by 300 m corridor where a hanging wall mineralizing event has been identified, deep targets along the Veta Grande strike to the SE, and the El Mirador part of the multi-km long La Veta Morada fault. Re-logging and sampling of historical drill holes is to continue, with a 5,000 m drilling program planned on existing targets. Defiance is preparing additional drill permit applications that will test some of the targets that lie outside of the current drill permit.

ON MINING

  • Sierra Metals Inc. informed the Mexican government issued a communication stating “that the effective date for Mining to be deemed an essential service was June 1, 2020. The Company is currently recalling employees from the Bolivar Mine (Chihuahua) to begin a COVID-19 screening process, including a quarantine period, allowing the Company to be ready to commence mining activities on June 1, 2020. The Cusi Mine (Chihuahua), as previously discussed in the May 13, 2020 press release, remains in care and maintenance”.
  • Aura Minerals Inc. announced that the Company filed its interim financial statements for the first quarter of 2020 (Aranzazu, Zacatecas).
  • Impact Silver Corp. announced its financial and operational results for the first quarter of 2020. Silver production was 179 K Oz Ag, with mill feeds from the Guadalupe, San Ramon, Cuchara and Veta Negra mines. At the end of the period the company cash and working capital stood at $3.9 M and $3.4 M respectively. Mining is to resume on June 1st, 2020, following government directions (Zacualpan, Estado de Mexico).
  • Mexus Gold US. Resumed full operational production after the Coronavirus emergency slowdown at its Santa Elena mine in Sonora (not to be mistaken with First Majestic’s Santa Elena mine, also in Sonora).
  • Fortuna Silver Mines Inc. resumed production activities at its San José mine in Oaxaca.
  • Gold Resource Corp. received written government approval to restart its Oaxaca Mining Unit in Oaxaca. “After reviewing Gold Resource Corporation’s safety protocol documentation, the Instituto Mexicano del Seguro Social (IMMS) approved in writing the restart of the Company’s OMU operations on May 25, 2020”.
  • Endeavour Silver Corp. has restarted operations at its three underground mines in Mexico. “The Company filed its mine operating and health plans with, and received approvals from, the Secretariat of Health in Mexico to recommence mining operations”. Guanaceví in Durango, Bolanitos in Durango and El Compa in Zacatecas are ramping up activities to achieve normal operations.
  • Discovery Metals Corp. announced its operating and financial results for the first quarter 2020. By the end of the period Discovery had cash and cash equivalents of $20 M (Cordero, Chihuahua).
  • Minera Capela (Industrias Peñoles) reported a rock-fall that resulted in two deaths and three more casualties in Tehuixtla, Teloloapan, Guerrero.
  • GR Silver Mining Ltd. Informed that due to international logistics and delays caused by the COVID-19 pandemic, the Company is relying on the blanket relief granted by the securities regulatory authorities in Canada to postpone the filing of its Q1 2020 reports. (Plomosas, Sinaloa).
  • Aura Minerals Inc. expects it will be able to gradually and safely resume activities at Aranzazu, Zacatecas, over the next few weeks.

ON FINANCING

  • Canasil Resources Inc. granted 1.75 M incentive stock options to directors, officers, consultants and employees. David Terry has agreed to act as an advisor to Canasil’s board of directors (La Esperanza, Zacatecas).
  • Orex Minerals Inc. intends to undertake a private placement financing to raise gross proceeds of up to $2 M. “Orex intends to use the net proceeds of the Offering to maintain its 40% share of the Sandra-Escobar Project in good standing and fund its 40% share of the upcoming work program, and for general corporate and working capital purposes”.
  • Silver Tiger Metals Inc. (formerly Oceanus Resources) announced it is now trading on the OTCQB, a US interdealer quotation system. Silver Tiger’s common shares also trade on the TSX Venture Exchange under its trading symbol SLVR (El Tigre, Sonora).
  • VanGold Mining Corp. adopted a warrant acceleration bonus program for its outstanding share purchase warrants granted in connection with the company’s 2019 private placement financing (El Pinguico, Zacatecas).
  • Equinox Gold Corp. reports that from April 1 to May 25, 2020, warrants s held by various security holders have been exercised for net proceeds of approximately $145 M. “As at May 26, 2020, the Company’s cash balance is more than $480 million” (Los Filos, Guerrero).
  • Southern Silver Exploration Corp. announced that the TSX Venture Exchange has approved the extension of the expiry date of certain of the company’s outstanding common share purchase warrants for an additional two years, with the expiration date now from June 2022 to September 2022 (Cerro Las Minitas, Durango).
  • Ridgestone Mining Inc. common shares are now listed on the Frankfurt Stock Exchange, broadening the corporation’s shareholders base in Europe (Rebeico, Sonora).
  • Aztec Minerals Corp. has engaged “Commodity-TV and Rohstoff-TV for an initial three month period to assist with Aztec’s investor relations activities. Pursuant to an agreement dated May 20, 2020, Aztec will pay C&R-TV €9000 plus expenses. C&R-TV is based in Switzerland and will introduce Aztec to its European investor network” (Cerro Cervantes, Sonora).
  • Vizsla Resources Corp. entered into an agreement with Canaccord Genuity Corp. for a bought deal purchase of shares for C$4 M in gross profits (Panuco, Sinaloa).
  • DynaResources Inc. closed a financing agreement with Golden Post Rail, LLC. and with certain individual shareholders of DynaUSA. Golden Post acquired a convertible promissory note of $2.5 M, bearing interest at 10% and maturing two years from the execution date. The other purchaser acquired convertible security notes in the amount of $1.4 M, bearing interest at 10% and maturing two years from the date of issuance (San Jose de Gracia, Sinaloa).
  • Minaurum Gold Inc. closed its previously announced brokered private placement offering, for aggregate gross proceeds of $5 M (Alamos Silver, Sonora).
  • Telson Mining Corp. closed a second and final tranche of the non-brokered private placement announced on December 27, 2019, for gross proceeds of $196.6 K (Tahuehueto, Durango).
  • Golden Tag Resources Ltd. Announced a non-brokered private placement for gross proceeds of up to $1.12 M. “Subsequent to closing of the Financing, the Company will have cash balances of approximately $2.1 million, and no debt” (San Diego, Durango).
  • Solaris Resources Inc. completed a non-brokered private placement financing raising gross proceeds of C$20 M (La Verde, Michoacan).
  • Mammoth Resources Corp. announced a non brokered private placement for gross proceeds of up to $131 K (Tenoriba, Chihuahua).
  • Consolidated Zinc Ltd. announced that the fully underwritten pro-rata non-renounceable entitlements offer to raise $1.73 M on the basis on 1 new share for every 3 shares held at the record date has closed (Plomosas, Chihuahua).

ON RESOURCES AND DEVELOPMENT

  • Mexican Gold Mining Corp. announced the company will resume activities at Las Minas, Veracruz, in July of 2020, with the goal of having all the necessary inputs for a preliminary economic assessment (PEA) study completed by the end of the year. A 3,000 m drilling program has been designed to expand and upgrade the current resource at El Dorado and continue exploration at the Cinco Señores and Changarro areas. A comprehensive metallurgical study is to be elaborated, as well as an airborne LIDAR on 50 square Km to map the ground surface to 10 Cm resolution.
  • Golden Minerals Co. announced the filing on SEDAR of a preliminary Economic assessment (PEA) for its Rodeo property in Durango.
  • Bacanora Lithium PLC. updated on activities at its Sonora Lithium project in Sonora. The pilot plant in Hermosillo is to remain closed until authorities lift the Coronavirus pandemic restrictions. Completion of the flow sheet engineering will provide an engineering, procurement and construction style engineering proposal to produce downstream battery grade lithium products, is now scheduled for end of Q4, 2020. from Sonora.
  • Discovery Metals Corp. informed that to date the company has completed 17,500 m (48 holes) of its planned 30,000 to 35,000 phase 1 drill program, demonstrating near-surface higher-grade potential over a strike length of 1,250 m, intercepting multiple sulfide veins with grades over 1 kilogram silver per tonne at its Cordero project, Chihuahua.

ON DEALS AND CORPORATE ISSUES

  • Mithril Resources Ltd. has completed the acquisition of Sun Minerals Pty Ltd., which holds and exclusive option to acquire the high-grade Copalquin project in Durango. The company issued 673.85 M ordinary shares for the acquisition of all the issued capital of Sun Minerals. Mithril also issued 10 M ordinary shares and paid US$200 K to Compañía Minera Copalquin, S.A. de C.V., and issued 225 M performance rights.
  • Candente Gold Corp. informed the memorandum of understanding (MOU) the company signed with Magellan Acquisition Corp. giving Candente the right to earn up to a 100% interest in both the SDA plant and the El Dorado property, in Nayarit, has been amended such that a payment of US$5 K is being paid upon signing the revised MOU and the payment of shares upon completion of due diligence and a definitive agreement to earn 10% interest has been increased from 4 M shares to 5 M shares, all other terms remain the same. The MOU is subject to TSX Venture approval as well as due diligence and execution of a definitive agreement.
  • Sonoro Metals Corp. has published a revised version of its Cerro Caliche project development report dated May 22, 2020. As a result of a review by the British Columbia Securities Commission, Sonoro withdrew an April 28, 2020 version of this project development report as it contained certain technical disclosures that did not comply with National Instrument 43-101 standards of disclosure for mineral projects. The revised report is not a technical report as defined by NI 43-101 and has been updated to address those disclosure issues and is now available on the Cerro Caliche project page of the Company’s website.

ON SOCIAL RESPONSIBILITY

  • Minera Peña Colorada donated 1000 sets of groceries to aid the most needed families in Cuatitlán de García Barragán, Jalisco.
  • Grupo Mexico donated 23 respiratory ventilators to the State of Sonora, to be distributed mainly in the capital hospitals.
  • Fresnillo PLC donated personal medical protection equipment in Caborca, Sonora.
  • Minera Real Bonanza supports the fight against the Covid-19 menace through the Hacienda Santa Ana museum in Real de Catorce, San Luis Potosi.
  • Grupo Mexico Foundation and Fechac delivered health protection kits to hospitals in Ciudad Juárez, Chihuahua.
  • Fresnillo PLC donated a respiratory ventilator to health authorities in Durango.
  • Fresnillo PLC donated medical protection equipment to a hospital in Fresnillo, Zacatecas.
  • The mining industry in Sonora has contributed with sanitizing kits, grocery kits, medical protection sets, hospital equipment, office equipment and public spaces sanitizing. These have benefited 125,813 people with an investment of $64.6 M pesos during April and May 2020, in communities like Cananea, Caborca, La Colorada, Nacozari, Cumpas, Fronteras, Magdalena, San Javier and Esqueda.

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

On the image below: White, granular quartz-graphite vein, Hermosillo District, Sonora. Picture by Jorge Cirett.

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

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By Jorge Cirett

Amidst the Coronavirus widespread suspension of activities, including mining and exploration, decreed by the Mexican government, a record number of press releases was issued. During the 14th week of the year (March 30th to April 5th, 2020), at least 57 press releases were announced by companies working in Mexico, of which 20 were on how companies were dealing with the situation. ON MEXICO ISSUES, a national decree by the federal government suspended all non-essential activities, which include mining and exploration, until the end of April. The DGM (Mining Regulator) is to manage everything through electronic channels during the Coronavirus contingency (in practical terms, do not expect anything done during this period of time). Previous to the federal government decree, the Sonoran government ordered the stoppage of all work on the mines on the State. Mexico is well poised for a substantial growth in lead and zinc production in 2020 (although the work suspension on mines might prevent it).  ON EXPLORATION, in Sonora, Silver Viper released more drilling results on El Rubi zone of its La Virgina project. Tocvan Ventures commenced geophysical and soil survey programs at its Pilar project. In Chihuahua, Discovery Metals and Kootenay Silver announced the suspension of activities at its Cordero and Columba projects respectively. In Sinaloa, Kootenay Silver announced the suspension of activities at El Copalito. Advance Gold released drilling information on its Tabaqueña project.  ON MINING, Mag Silver, Excellon Resources and Odyssey Marine Exploration presented 2019 results. First Majestic plans to invest $46 M in capital expenditures at its Santa Elena project. GoGold completed the commissioning of a SART palnt at its Parral tailings facilities. Equinox plans to produce 170 K – 190 K Oz Au during 2020 at Los Filos, Guerrero, and invest a total of $75 M. ON FINANCING, Orla Mining closed a bought deal for C$75 M. Mithrill is to conduct a rights issue for share holders in Australia and New Zealand to raise $2.45 M. Southern Silver announced the exercise of 2015 and 2016 warrants and options, raising $1.25 M. ON RESOURCES AND DEVELOPMENT, First Majestic updated the mineral resource estimate on seven of its Mexican properties. Sierra Metals updated the mineral resource estimate on Bolivar, Chihuahua. Prime Mining produced a new resource estimate for its Los Reyes project in Sinaloa. Mag Silver has to obtain funding, or see its 44% JV participation in the Juanicipio project (Zacatecas) dwindle. Great Panther filed two technical reports on the Guanajuato mine complex. Bacanora Lithium granted a contract to GRES on the Sonora Lithium project. Golden Minerals presented a new PEA for its Velardeña properties. GR Silver Mining released underground channel results from the Plomosas project in in Sinaloa. ON DEALS AND CORPORATE ISSUES, GR Silver completed the acquisition of the Plomosas project in Sinaloa. Argonaut Gold and Alio Gold are merging. Orex Minerals and Pan American Silver are forming a JV on the Sandra project in Durango. Riverside is going ahead with the Peñoles project (Durango) spin-off. Mithrill Resources informed on the acquisition of Sun Minerals. Southern Silver entered into an agreement with Monarch Minerals to purchase a mineral concession adjacent to Cerro Las Minas project in Durango. Oroco Resources amended disclosures on the Santo Tomas project technical report. Odyssey Marine Exploration continues with the arbitration process for its offshore phosphate project in Baja California Sur. ON SOCIAL RESPONSIBILITY. Newmont GoldCorp Peñasquito donated 500 COVID-19 tests and delivered thousands of cleansing packages in the communities near the Peñasquito mine in Zacatecas..

ON MEXICO ISSUES

  • Mining halted in Mexico. A national decree by the Mexican federal government suspended all non-essential activities for 30 days on the wake of the fight on the propagation of the coronavirus. Mining is not considered essential thus all operations are due to shut down.
  • Mexico is well positioned for increased lead and zinc production, BNamericas. Supported by expected continued work at Newmont’s Peñasquito mine, Southern Copper’s San Martin mine and Peñoles operations, the lead and zinc Mexican production is poised to grow in 2020. Lead production could increase 27.8% to 194.9 K tonnes, with the expected production of 90.7 K tonnes at Peñasquito. Zinc production could increase 27% to 633.2 K tonnes, with its expected production of 192.8 K tonnes. Both zinc and lead face extremely low prices, with zinc at US$0.85/Lb and lead close to US$0.75/Lb.
  • To reduce coronavirus contagion risks, the Dirección General de Minas (DGM) initiated a protocol to process requests and information only through electronic media, for the time that the contingency lasts (in practical terms, the already slow pace of proceedings at the DGM is coming to halt for the time being).
  • The Mining Fund served its purpose at Jiapaz, Zacatecas, where solar panels were installed to power the water system on La Martinica de Guadalupe neighborhood.
  • The Sonora government issued orders to stop all non-essential activities, including mining, as a mean to reduce the propagation speed of the COVID-19 pandemic in the state.
  • Mining companies that presented press releases on Coronavirus related suspension of activities: Argonaut Gold, Sierra Metals, Pan American Silver, Premier Gold Mines, Equinox Gold, GoGold Resources, Gold Resource, Excellon Resources, Endeavour Silver, Azucar Minerals, Avino Silver & Gold Mines, Agnico Eagle Mines, Almaden Minerals, Alamos Gold, Fortuna Silver, Mithrill Resources, Vizsla Resources, Torex Gold, Great Panther, and Golden Minerals.

ON EXPLORATION

  • Silver Viper Minerals Corp. released drilling results at its La Virginia project in Sonora. The Rubi zone strike length increased by 100 m, to a total of 400 m, where a total of 6,103 m in 20 holes have been collared; a further 852 m in four holes were drilled at the Macho Libre target. The results for the last nine holes are still pending. Highlighted true width intervals comprise: 1.42 m @ 156 gpt Ag, 1.79 gpt Au; 2.84 m @ 249 gpt Ag, 1.55 gpt Au (including 0.36 m @ 1,584 gpt Ag, 5.56 gpt Au); 17.04 m @ 28 gpt Ag, 0.69 gpt Au; 1.07 m @ 52 gpt Ag, 1.27 gpt Au; 1.07 m @ 124 gpt Ag, 3.32 gpt Au; 4.26 m @ 38 gpt Ag, 0.64 gpt Au; 6.04 m @ 74 gpt Ag, 0.99 gpt Au (including 1.78 m @ 187 gpt Ag, 2.48 gpt Au. The company recently completed a 4,800-hectare; 718 line-km helicopter borne magnetic-radiometric geophysical survey centered on El Rubi zone.
  • Discovery Metals Corp. announced the temporarily suspension of all exploration activities at its Mexican operations due to the COVID-19 risks. “Discovery has already completed 48 holes totaling 17,500 metres of its planned 30,000 – 35,000 metre Phase 1 drill program. The Company will provide ongoing exploration updates for the 34 drill holes not previously press released once results have been received and validated”. Discovery had a cash balance of CAD$24 M by the end of 2019 (Cordero, Chihuahua).
  • Tocvan Ventures Corp. announced the commencement of the 2020 field program at the Pilar project in Sonora. The focus is to expand the known areas of mineralization, gain a better understanding of structural controls, identify mineralization targets and define drill targets. A multiple-task (?) geophysical survey is underway concurrently with a close-spaced soil sampling program. These surveys will be followed up with structural refining, XRF survey across the property and reviewing historical drill holes.
  • Kootenay Silver Inc. temporarily suspended the current drill programs at its Columba (Chihuahua) and Copalito (Sinaloa) projects, to reduce the propagation risks of the Coronavirus.
  • Advance Gold Corp. released information on drilling at its Tabasqueña project in Zacatecas. One hole was abandoned because of challenging drilling conditions; a second hole intercepted a black slate with small sulphide lenses 0.3 cm to 1 cm in thickness, this unit explains the chargeability anomaly detected by the geophysical survey. The best intercept was 1.25 m @ 2.79% Pb; the third hole also intersected the sulphide bearing black slate unit, assays pending. Teck’ San Nicolas VMS project is 11 kilometers East of Tabasqueña.

ON MINING

  • First Majestic Silver Corp. plans to invest US$46.3 M in capital expenditures at its Santa Elena mine in Sonora. Exploration, the installation of an autogenous mill, exploration and development of the Ermitaño West, mine access preparation and prefeasibility studies are among the use of the funds involved.
  • GoGold Resources Inc. reported the completion of commissioning of the SART plant at its Parral Tailings facility in Chihuahua. “The main economic drivers are the recovery of a high-grade saleable copper sulfide product, the re-generation of cyanide, which is the largest single operating cost at Parral, and improve the leaching efficiency of the heap”. GoGold reduced the need to purchase cyanide by $200 K in March.
  • Excellon Resources Inc. reports 2019 annual and Q4 financial results. At Platosa, in Durango, 19.8 K tonnes @ 435 gpt Ag, 4.84% Pb, 6.39% Zn were processed, recovering 91.7% Ag, 80.2% Pb, 76.5% Zn to produce 259.2 K Oz Ag, 1.69 M Lb Pb, 2.06 M Lb Zn during the quarter. For the full year 75.2 K tonnes @ 409 gpt Ag, 4.75% Pb, 6.82% Zn were processed , recovering 89.9% Ag, 79.2% Pb. 77.7% Zn to produce 1.05 M Oz Ag, 6.1 M Lb Pb, 8.4 M Lb Zn, or 1.93 M Oz AgEq.
  • Odyssey Marine Exploration Inc. reported results for the full year 2019.
  • Equinox Gold Corp. provided production guidance for 2020, including figures from its operations in Mexico. At the Los Filos mine in Guerrero, production is set to range between 170 K to 190 K Oz Au, at an AISC of $1,000 to $1,050 per Oz Au, sustaining capital of $24 M and Non-sustaining capital of $51 M. “The Company is advancing an expansion of the Los Filos mine complex including enlarging the Los Filos open pit, developing a second underground mine (Bermejal), adding a new open pit (Guadalupe) and constructing a new carbon in leach (“CIL”) plant to process higher-grade ore…….. Equinox Gold has budgeted a total capital spend of $75 million at Los Filos during 2020. Non-sustaining capital of $51 million relates primarily to the expansion project and includes $20 million for pre-stripping of the Guadalupe open pit and $23 million allocated to Bermejal underground development”.

ON FINANCING

  • Newmont Corp. has announced expiration and final results of the tender offers for its 3.5% senior notes due 2022 and Goldcorp’s 3.7% notes due 2023. (Peñasquito, Zacatecas).
  • Mithrill Resources Ltd. will be conducting a pro-rata non-renounceable rights issue to allow shareholders, of ordinary shares with a registered address in Australia or New Zealand, to apply for one share for every ordinary share held, to raise $2.45 M (Copalquin, Durango).
  • Southern Silver Exploration Corp. informed recent warrant and option exercised during the current fiscal period. Warrants and options issued in 2015 and 2016 were exercised for $1.25 M in gross profits (Cerro La Mina, Durango).
  • Orla Mining Ltd. closed its previously announced bought deal financing with a syndicate of underwriters led by Stifel GMP and including Desjardins Capital Markets, Paradigm Capital and Cormark Securities Inc. for aggregate gross proceeds of C$75 M.

ON RESOURCES AND DEVELOPMENT

  • First Majestic Silver Corp. updated mineral reserve and mineral resource estimates for the San Dimas (Durango), Santa Elena (Sonora) and La Encantada (Coahuila) producing mines, as well as from its San Martín (Jalisco), La Parrilla (Durango), Del Toro (Zacatecas) and La Guitarra (Estado de Mexico) properties.

First Majestic Reserves and Resources 2019

  • Sierra Metals Inc. updated mineral reserve and mineral resource estimates for its Bolivar mine in Chihuahua. Mineral reserves decreased by 2.5 M tonnes on mining depletion from 2017, but measured, indicated and inferred resources have significantly grown.

Bolívar Reserves and Resources to 201911

  • Mag Silver Reported 2019 annual results. Development of the Juanicipio mine (Zacatecas) and processing plant continue, with the plant expected to commence commissioning in mid-2021. Underground development is ongoing, exceeding now 26 Km. Remaining pre-operative initial capital is estimated at $305 M, although this figure can be reduced by cash in hand of the operator of the JV (Fresnillo 56%, Mag 44%) and expected cash flow from mineralized material extracted and processed at the Fresnillo’s mine facilities commencing in mid-2020. “The Company needs to raise additional capital in the future in order to meet its full share of initial capital required to develop the Juanicipio Project. Mag does not generate operating cash flow at this time to fund such obligations, and accordingly, future liquidity will depend upon its ability to arrange debt or additional equity financings. The Company is currently evaluating several proposals. The inability of MAG to fund its 44% share of cash calls would result in dilution of its ownership interest in Minera Juanicipio in accordance with the shareholders’ agreement”. At the end of the year Mag had $71.86 M including cash and cash equivalents of $72.36 M AuEq.
  • Great Panther Mining Ltd. filed two technical reports regarding the Guanajuato mine complex. “The reports are titled “NI 43- 101 Mineral Resource Update Technical Report on the Guanajuato Mine Complex, San Ignacio Mine, Guanajuato State, Mexico”, dated March 17, 2020, and “NI 43-101 Mineral Resource Update Technical Report on the Guanajuato Mine Complex, Guanajuato Mine, Guanajuato State, Mexico”, dated March 27, 2020”.
  • SilverCrest Metals Inc. released protocols to minimize exposure to coronavirus, in order to decrease the risk to employees, contractors, families and communities near Las Chispas project in Sonora.
  • Evrim Resources Corp. updated the resource on the Ermitaño project in Sonora, of which it holds a 2% NSR. Property owner First Majestic Silver Corp. announced a 15% increase in grade and a 345% increase in contained AgEq ounces in the indicated resources compared to the previous estimate. The indicated resources are 2.1 M tonnes @ 4.59 gpt Au, 70 gpt Ag, containing 311 K Oz Au and 4.73 M Oz Ag; the inferred resources stand at 3.73 M tonnes @ 3.08 gpt Au, 58 gpt Ag, containing 370 K Oz Au, 6.98 M Oz Ag.
  • Bacanora Lithium. Announced the granting of a contract to GR Engineering Services for engineering, acquisition and construction services on the Sonora lithium project.
  • Prime Mining Corp. released a new resource estimate for its Los Reyes project (formerly Guadalupe de Los Reyes) in Sinaloa. The pit constrained resources range from 19.75 M tonnes @ 1.31 gpt AuEq measured and indicated resources (M&I) containing 833.1 K Oz AuEq and 7.1 M tonnes @ 1.14 gpt AuEq in inferred resources containing 261.1 K Oz AuEq at a 0.22 gpt AuEq cutoff; to 5.91 M tonnes @ 2.72 gpt AuEq M&I resources and 1.68 M tonnes @ 2.59 gpt AuEq containing 516.2 K Oz AuEq and 140.5 K Oz AuEq respectively, at a cutoff grade of 1.0 gpt AuEq. The pit strip ratio is calculated as 4.6 to 1 waste to ore in six separate pits.
  • Golden Minerals Co. announced positive results from the updated mineral resource estimate and preliminary economic assessment (PEA) for its Velardeña properties in Durango. The PEA states a pre-tax net present value of $85.9 M at an 8% discount rate, an internal rate of return of 138.6%, pre-production capital cost of $10.27 M, post production and working capital $15.93 M and a life of mine of 10 years to produce 10.2 M Oz Ag, 119 K Oz Au. The resource estimate including sulfide and oxide ore comprises 1.35 M tonnes @ 307 gpt Ag, 4.92 gpt Au, 1.54% Pb, 1.78% Zn in measured and indicated resources, containing, 13.34 M Oz Ag, 214 K Oz Au, 45.8 M Lb Pb, 53 M Lb Zn; and 1.76 M tonnes @ 354 gpt Ag, 4.73 gpt Au, 1.72% Pb, 1.86% Zn, containing 20.1 M Oz Ag, 268 K Oz Au, 67.1 M Lb Pb, 72.3 M Lb Zn.
  • GR Silver Mining Ltd. released assay results from initial underground channel sampling from the San Juan workings at the Plomosas Silver project. San Juan is one of six priority areas with underground development not yet exploited by previous owners. Some of the highlighted composites comprise 2.1 m @ 0.30 gpt Au, 552 gpt Ag, 0.7% Pb, 1.0% Zn (including 0.40 m @ 1.2 gpt Au, 3,003 gpt Ag, 2.9% Pb, 3.1% Zn); 5.0 m @ 0.28 gpt Au, 816 gpt Ag, 0.9% Pb, 0.5 % Zn; 2.0 m @ 0.51 gpt Au, 1,145 gpt Ag, 0.9% Pb, 0.4% Zn; 2.8 m @ 0.42 gpt Au, 482 gpt Ag, 0.4% Pb, 0.4% Zn; 9.3 m @ 0.13 gpt Au, 346 gpt Ag, 0.7% Pb, 1.0% Zn; 3.0 m @ 0.11 gpt Au, 485 gpt Ag, 0.2% Pb, 0.3% Zn.

ON DEALS AND CORPORATE ISSUES

  • GR Silver Mining Ltd. Has completed the acquisition of the Plomosas silver project in Sinaloa, from First Majestic Silver Corp. .GR Silver paid CDN$100 K, granted First Majestic a 2% NSR, of which half could be bought for US$1 M, and issued First Majestic 17.1 M shares of GR Silver. The project comes with six areas at the drilling/resource stage, with 563 drill holes totalling over 100,000 m of core drilling and the mining infrastructure of the Plomosas mine, that produced over 2.5 M tonnes of Pb-Zn-Ag ore.
  • Argonaut Gold Inc. and Alio Gold Inc. have entered into a definitive agreement for an at-market merger whereby Argonaut will acquire all of Alio shares. The transaction creates an intermediate producer with four operations rendering 235 K Oz AuEq per year from four mines and presence in Mexico, Canada and USA, and a pipeline that includes Ana Paula (Guerrero), Cerro del Gallo (Guanajuato) and Magino (Canada).
  • Orex Minerals Inc. entered into an agreement to form a JV with Pan American Silver Corp. to explore and develop the Sandra (formerly Sandra Escobar) project in Durango. Orex and Pan American will own a 40% and 60% interest in the JV.
  • Riverside Resources Inc. has received requisite shareholder approval for the spin-out of the Peñoles Project (Durango) to its shareholders. “Once the Arrangement becomes effective, Riverside shareholders will own shares in two public companies: Capitan, which will focus on the development of the Peñoles Project, and Riverside, which will continue to generate prospective mineral properties”.
  • Mithhrill Resources Ltd. Informed on the proposed acquisition of Sun Minerals Pty Ltd., which holds an option to earn up to 100% interest on the Copalquin project in Durango. Due diligence was completed, a formal share agreement for the acquisition of all issued share capital of Sun Minerals was executed and shareholder approval received. On view of recent market developments, Mithrill and Sun Minerals agreed that Mithrill is to raise a minimum of A$1.5 M.
  • Southern Silver Exploration Corp. entered into an agreement with Monarch Minerals Inc. to purchase the El Sol mineral concession in Durango, near the Sothern Silver and Electrum Global Holdings L.P. Cerro Las Minas JV project. The purchase will not form a part of the Cerro Las Minitas JV. Acquisition cost is $US300 K payable in three equal installments on signature, 12 and 18 months, with the vendor retaining a 2% NSR that can be bought by Southern Silver at any time for US$1 M.
  • Oroco Resource Corp. wishes to clarify and amend its disclosures with respect to its Santo Tomas project in Sinaloa. “The BCSC reviewed the Company’s October, 2019 and March, 2020 corporate presentations (the “Presentations”) and its current technical report dated August 22, 2019 and titled “Technical Report Geology, Mineralization, and Exploration of the Santo Tomas Cu-(Mo-Au-Ag) Porphyry Deposit Sinaloa, Mexico” authored by D. A. Bridge, P. Geol.” (the “Report”). Both the current Presentation and the Report have been removed from the Company’s website pending revision. The disclosure issues in the Presentations and the Report with respect to National Instrument 43-101 (the “Instrument”) and Form 43-101F1 are summarized in the following discussion”.
  • Odyssey Marine Exploration Inc. has launched a NAFTA arbitration process on its “Exploraciones Oceánicas” phosphate project off the Pacific coast of Baja California Sur. “The Arbitral Tribunal, consisting of three international arbitrators well-versed in international investment treaties, has been constituted and the parties are now in the process of finalizing the arbitration schedule and procedures with the Tribunal……..“We intend to continue to work diligently and in good faith with Mexico’s current administration to achieve an equitable resolution of this dispute and to help Mexico provide fertilizer to its farmers, but we are prepared to proceed with the full NAFTA arbitration process if necessary, and have recently received increased litigation funding specifically to support this case”. The Exploraciones Oceánicas project contains an estimated 588 M tonnes of phosphate, at a depth of 70-90 m, lying 25 to 40 km from the coast, with almost no overburden.

ON SOCIAL RESPONSIBILITY

  • Newmont Goldcorp donates 500 COVID-19 tests in Zacatecas. The donation amounts to more than $2 M pesos.
  • Newmont Peñasquito delivered 3,000 cleansing packages, in the communities near the Peñasquito mine in Zacatecas, amidst the fight against the spread of the Coronavirus. The packages are to be delivered in and by local health institutions.

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

On the image below: Hematite-goethite stained quartz vein in an orogenic gold system, Oaxaca. Picture by Jorge Cirett.

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

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By Jorge Cirett

During the 12th week of the year (March 16th to March 22nd, 2020), at least 30 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, Javier Corral, Chihuahua’s governor proposed the Major’s National Association they take part on the current constitutional controversy about the use of the Mining Fund. Mining companies around Mexico and the Camimex prepare for the Coronavirus by cancelling meetings, fairs and gatherings, and promote precautionary measures among its personnel, contractors and communities The AIMMGM convention in Chihuahua, the AMSAC convention in Cananea, and the Discoveries Conference in Guadalajara were to be held at the end of April, but have been re-scheduled due to the Coronavirus effects to later dates on July, August and September. ON EXPLORATION, in Baja California, One World Lithium has obtained the drilling, environmental and occupancy permits to commence drilling on the southern part of the project. In Sonora, Colibri announced the completion of phase 1 drilling at Evelyn. In Chihuahua Century Metals and Reyna Silver are to continue the exploration of the Guigui project near Santa Eulalia.  ON MINING, Starcore filed the results of the last quarter. Mexus Gold continues leaching in Sonora. Avino Silver, Torex gold, McEwen Mining, Impact Silver, Great Panther, Excellon, Argonaut Gold, GoGold Resources, Endeavour Silver, Equinox Gold and Fortuna Silver informed on the measures taken to protect their business, people and communities from the effects of the Coronavirus epidemic. ON FINANCING, Silver Spruce entered into debt settlement agreements for $350 K. First Majestic intends to repurchase up to 10 M shares. SilverCrest Metals received notice from National Bank Financial to terminate their agreement to purchase up to $9.1 M shares. Almaden Minerals amended its private placement to reflect current market conditions. ON RESOURCES AND DEVELOPMENT, Prime Mining informed on recent work at its Guadalupe de Los Reyes project in Sinaloa, and how it might impact on the next resource estimation.  ON DEALS AND CORPORATE ISSUES, Century Metals provided an update on the acquisition of Reyna Silver (and its Guigui project in Chihuahua). Riverside Resources informed on its capitalization, business and current BHP strategic funding. Excellon Resources continues on the acquisition path of Otis Gold. Hecla Mining informed on current hedges to deflect the turmoil on the metals market.  ON SOCIAL RESPONSIBILITY. Minera Media Luna informed on a community campaign to prevent the spread of COVID-19 on neighboring villages to its operations.

ON MEXICO ISSUES

  • Javier Corral, Chihuahua’s governor, proposed on the Executive Committee of the Major’s National Association (Asociación Nacional de Alcaldes) that they take part on the constitutional controversy promoted by the Chihuahua government to rescue the Mining Fund from the Federal government.
  • Mining Companies across Mexico prepare for the Coronavirus, Grupo Mexico, Agnico Eagle, Alamos Gold, Fresnillo PLC and Minera El Boleo are among the companies that have installed policies aimed to reduce the chances of infection among its employees, workers and contractors, including the cancellation of fairs and meetings, as well as work from home programs and access control programs at its installations.
  • The AIMMGM convention in Chihuahua to be held on 21-24 April has been changed to 20-24 July, aiming to reduce the Coronavirus spread on the population. On the same grounds the AMSAC (Asociación de Mineros de Sonora) that was to be held on 29 April-1 has been postponed to 3-4 September.
  • The Discoveries Mining Conference to be held in Guadalajara in late April has been postponed, on the same venue, to 10-12 August 2010.
  • CAMIMEX (Cámara Minera de México) informed it is reducing all non-essential activities and avoiding in-person meetings, although maintaining the offices open to facilitate operations. The organism makes a strong plea to companies and the general population to follow all the preventive measures possible.

ON EXPLORATION

  • Colibri Resource Corp. announced the completion of the phase 1 drilling program at its Evelyn project in Sonora. Five holes were collared in the program that measured 815.6 m in total.
  • Century Metals Inc. and Reyna Silver Corp. are engaged on a merger that intends to advance the 4,554 ha Guigui project in the Santa Eulalia district in Chihuahua. Studies on the project for the last 25 years include detailed geologic mapping and sampling, gravimetrics, ground magnetics, CSAMT (Controlled Source Audio Magneto-Tellurics), NSAMT (Natural Source Audio Magneto-Tellurics), Airborne ZTEM/magnetics, satellite hyperspectral and definition of drilling targets. The planned budget for 10,000 m for compiling and re-processing all prior work and 10,000 m of diamond drilling is $2.44 M.
  • One World Lithium Inc. announced that drilling, environmental, and occupancy permits have been approved to drill two key locations at the south end of the Salar del Diablo Property in Baja California. The proposed exploration holes are located 50 km south of the previous drill holes in the north portion of the property. Mike Rosko of Montgomery Associates has recommended these locations, as “there is evidence of historic and currently active hydrothermal activity in the south and that hydrothermal activity can be a source of lithium such as in the Lithium Triangle in Chile and Argentina”.

ON MINING

  • Starcore International Mines Ltd. filed the results for the Q3 ended on 31 January, 2020. At the company’s San Martin mine in Queretaro, 58.3 K tonnes were milled @ 1.84 gpt Au, 30.1 gpt Ag, recovering 90.1% Au, 50.9% Ag, to produce 3.1 K Oz Au, 29.6 K Oz Ag during the quarter; on the year 301.9 K tonnes were milled @ 1.63 gpt Au, 39.6 gpt Ag, recovering 86.2% Au, 58.4% Ag, to produce 13.7 K Oz Au, 224.5 K Oz Ag (16.4 K Oz AuEq), at cash cost $1,061 per Oz AuEq.
  • Mexus Gold US. continues gold production at its Santa Elena mine in Sonora (Not to mistake for First Majestic’s Santa Elena mine, also in Sonora).
  • Avino Silver & Gold Mines Ltd. reported that there is not been impact on day to day operations at the Avino mine in Durango. The company restricted entrance to external visitors and no-one at the mine-site has tested positive for the COVID-19. Two medical doctors are monitoring and educating the labour force and employees daily.
  • Torex Gold Resources Inc. announced that to date the company had no known or suspected cases of COVID-19 infection at the El Limón – Guajes operations in Guerrero. “At the operation, we have stopped international travelers from coming to site. Social distancing efforts at site are being implemented, which includes isolating delivery drivers. Aggressive cleaning of communal areas has also been ramped up. Education initiatives on infection prevention have been extended to the surrounding communities”.
  • McEwen Mining Inc. reported fourth quarter and full year 2019 results, including figures from its Mexican operations. Production from residual leaching at El Gallo, in Sinaloa, was 2,490 Oz Au Eq for the quarter and 16,333 Oz Au for the year.
  • Impact Silver Corp. informed operations continue as the Coronavirus situation is monitored daily. “In conjunction with local authorities we are actively disseminating information on COVID-19 precautionary measures to our employees and their families. We will continue to monitor their health and for signs of early symptoms of the virus on a regular basis to ensure safety of our staff” (Zacualpan, Estado de Mexico).
  • Great Panther Mining Ltd. announced that it has been closely monitoring the latest developments of the novel Coronavirus COVID-19. “All operations and offices have implemented travel restrictions, supervision, monitoring and response plans to reduce the risk of COVID-19 exposure and outbreak” (Topia, Durango).
  • Excellon Resources Inc. informed the company is in regular contact with local health authorities at its Platosa (Durango) and Miguel Auza (Zacatecas) operations, and continue to monitor global trends on the Coronavirus pandemia. Among other measures “we have restricted site access to essential personnel and essential suppliers. We are conducting health screening at the gate and have provided our security and health personnel with additional protective measures. We have increased the frequency of workplace cleaning and disinfection, including transport vehicles, and have also increased the number of hand sanitizer stations across the work sites. We have implemented social distancing by doubling the number of buses transporting employees to site, significantly modifying food provision services and increasing office space for administration staff, as well as preparing to adjust our existing work-from-home policies as conditions dictate”.
  • Argonaut Gold. Has implemented protocols to minimize the risks of COVID-19 virus, both to employees and business. “At each site, Argonaut is following government health protocols, has implemented additional protocols and is closely monitoring the situation with local health authorities” (La Colorada, Sonora).
  • GoGold Resources Inc. informed that “The constantly changing COVID-19 situation is unprecedented and for many is a time filled with uncertainty. We’d like to ensure our shareholders that operations at Parral and Los Ricos continue as normal as we monitor the situation” (Parral, Chihuahua; Los Ricos, Jalisco).
  • Endeavour Silver Corp. has implemented plans to minimize the risks of the COVID-19 virus both to the employees and to the business. “At each site, Endeavour is following government health protocols and is closely monitoring the situation with local health authorities. The Company has posted health advisories to educate employees about the COVID-19 symptoms, best practices to avoid catching the virus, and procedures to follow if symptoms are experienced” (El Compas, Zacatecas).
  • Fortuna Silver Mines Ltd. has been monitoring the effects of the spread of the Coronavirus, particularly in the jurisdictions that host its mining operations. The company “has placed its Health Safety Security and Environmental Committee in permanent session and is continually assessing the related health and safety risks to the Company’s personnel and contractors at its operations and offices. Preventative measures implemented at our offices and mines include: restrictions on travel, enhanced communication on prevention of contagion and viral effects, increased hygiene initiatives, monitoring personnel and visitors at our sites for symptoms of COVID-19, identification of personnel in high risk categories, reducing mine site personnel to a minimum level essential for continued operations and limiting visitors to those whose visits are considered critical” (San José, Oaxaca).
  • Equinox Gold Corp. “is closely monitoring the COVID-19 pandemic and has taken precautionary measures at its mine sites and offices to help protect the safety of the Company’s workforce and local communities” (Los Filos, Guerrero).

ON FINANCING

  • Silver Spruce Resources Inc. has entered into debt settlements with several creditors and one officer and director to settle $350 K. Under the terms of the debt settlement agreements 7 M shares were issued (Pino de Plata, Chihuahua).
  • First Majestic Silver Corp. board has approved the extension of its share repurchase program over the next year, period on which the company aims to re-purchase up to 10 M shares (San Dimas, Durango; Santa Elena, Sonora).
  • SilverCrest Metals Inc. received notice from National Bank Financial Inc. purporting to terminate its obligations pursuant to an agreement whereby NBF had asked for and agreed to purchase on a “bought deal” basis 9.1 M common shares at price of $8.25 per common share, based on the “disaster out” clause of the agreement. “SilverCrest intends to pursue its legal remedies against NBF for breach of NBF’s obligations under the terms of the Agreement” (Las Chispas, Sonora).
  • Almaden Minerals Ltd. amended its private placement in order to reflect current market conditions. The purchase price for units has been reduced from $0.41 to $0.37 and the exercise price for warrants from $0.65 to $0.50, while the offering size has been increased from 4.9 M to 5.4 M units (Ixtaca, Puebla).

ON RESOURCES AND DEVELOPMENT

  • Prime Mining Corp. informed recent work at its Guadalupe de Los Reyes project in Sinaloa hints to the potential of linking resources. Recent new trenches and road cuts sampling indicate mineralization linkage between the Zapote North and Zapote South orebodies. “Independent engineers are currently assessing and calculating a new resource model, which is now expected to be updated by the end of Q1 2020”. The historic resource is 530 K Oz Au, 10 M Oz Ag, established for Vista Gold in 2013.

ON DEALS AND CORPORATE ISSUES

  • Century Metals Inc. provided an update on the acquisition of all the shares of Reyna Silver Corp. (which owns the Guigui project in Chihuahua). Century is to consolidate to its shares to 5.35 M, both companies are to undertake private placements and Century will issue shares to Reyna Silver’s shareholders and warrants to the holders of warrants, and Century will issue shares to Mag Silver Corp., which is to hold 19.9% of the consolidated shares. Century and Reyna are raising up to $6.8 M in conjunction with the acquisition through concurrent financings. To date, Reyna has raised $5.06 M and Century $1.49 M. The Acquisition is a reverse takeover, and the definitive agreement is expected to be settled before the end of March 2020.
  • Riverside Resources Inc. provided an update on its operations. Currently the company has more than C$2 M in cash, no debt, 63 M shares outstanding and posted to receive $1 M from BHP in May, as part of a generative copper exploration strategic funding agreement. The company also holds marketable securities worth over C$1 M and has retained NSR’s on previously partnered projects. By the end of the month Riverside will have a vote to spin-out the Peñoles project in Durango.
  • Excellon Resources Inc. and Otis Gold Corp., announced that they have filed a joint circular in connection with the acquisition by Excellon of all the shares of Otis, pursuant to a plan of arrangement under the Business Corporations Act of British Columbia (Platosa, Durango).
  • Hecla Mining Co. provided a summary of the activities undertaken to protect its business, employees and local communities from COVID-19. Among the actions taken, contracts have been secured for $16 per Oz Ag for the second quarter, and $1,450 and $1,650 per Oz Au for the second and third quarter respectively. The company has implemented and followed recommended health and hygiene protocols, restricted mine site staff to essential personnel and contractors, stockpiled critical mining supplies (up to six months’ worth in some cases) to protect against possible future supply disruptions (San Sebastian, Durango).

ON SOCIAL RESPONSIBILITY

  • Minera Media Luna has a community campaign to prevent the spread of the COVID-19 virus in the region of the Limon-Guajes mine in Guerrero. The campaign includes an informative preventive health circle inward and outward of the mining complex, into the communities of Acalmantlila, Nuevo Balsas, Real de Limón, La Fundición and Atzcala, among others.

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

On the image below: potassic feldspar alteration in a meta granitoid in Oaxaca, picture by Jorge Cirett.

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

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By Jorge Cirett

During the 4th week of the year (January 20th to January 26th, 2020), at least 22 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, Highlights on some advanced projects were shared, including Ermitaño, Santana, Media Luna and La Colorada skarn. A good week for Mexican mining companies on the Bolsa Mexicana de Valores (BMV), with share price increments for Grupo Mexico, Industrias Peñoles, Orbia (Mexichem) and Cemex. The president of Mexico stated no mining concessions for lithium have been granted under his term.  ON EXPLORATION, in Sonora, Riverside reported good surface sampling results from its El Cuarenta project; Minaurum completed the phase I drilling program at its Alamos Silver project, testing 19 of 25 identified vein systems; Mexus Gold is looking to JV its Mabel and Ures properties. In Zacatecas, Advance Gold released results from the first hole at a chargeability anomaly in its Tabasqueña project. In Hidalgo, Santacruz Mining staked the Lechuga property.  ON MINING, Argonaut Gold, Coeur Mining, Gold Resource, Premier Gold, Sierra Metals, and First Majestic released production results for Q4 and full year 2019.  ON FINANCING, Silver Spruce filed an amendment at the TSX regarding the Cocula project in Jalisco. ON RESOURCES AND DEVELOPMENT, Minera Alamos announced construction is ongoing at its Santana project in Sonora. Argonaut Gold informed it is reviewing its option on the San Antonio project in Baja California Sur, whereas at Cerro del Gallo in Guanajuato the company is to produce a corrected bundle of documents to re-submit to the authorities for authorization. Silver Crest released high grade results from the Babi Sur vein at its Las Chispas property in Sonora. Impact Silver released good surface sampling results on two veins at an open pit at its Zacualpan property in Estado de Mexico. Mexus Gold started mining a new zone at its Santa Elena mine in Sonora. GoGold released results from nine more holes at its Los Ricos project in Jalisco. Mexican Gold released drilling results from its Las Minas project in Veracruz. Prime Mining announced surface results from road cuts and trenches from its Los Reyes project in Sinaloa. GR Silver Mining updated on its exploration results at its San Marcial project in Sinaloa.   ON DEALS AND CORPORATE ISSUES, Leagold was advised to vote favorably on a proposed merge with Equinox. ON SOCIAL RESPONSIBILITY. The Mining Fund allocated the resources for rehabilitation of a sports field in Santa Barbara, Chihuahua. Esperanza Silver is to apply a new model of mining on the development of the Esperanza mine, in Morelos. Minera San Xavier formalized the transference of its silver’s jewelry shop to one of its employees in Cerro San Pedro, San Luis Potosi. The Guerrero government, the Municipality of Cocula and Torex Gold are to pave a road in Cocula.

ON MEXICO ISSUES

  • Some new projects highlights: First Majestic initiated a 3,000 m development program designed to get the Ermitaño project in Sonora into production by early 2021. Ermitaño is 4 km from First Majestic’s Santa Elena mine. Minera Alamos has started construction of its Santana mine in Sonora, where it expects to start producing gold later in the year from heap leach operations. Torex Gold released a new resource estimation for its Media Luna project in Guerrero, with 12.6 M tonnes @ 5.55 gpt Au Eq containing 2.24 M Oz AuEq as indicated resources, and 33.5 M tonnes @ 4.23 gpt Au Eq containing 4.56 Oz AuEq as inferred resources. The capital needed to take this project into production is estimated at US496 M, to reach a yearly production of 170 K Oz Au, 1.7 M Oz Ag and 21 K tonnes Cu. The giant La Colorada skarn discovery by Pan American Silver in Zacatecas has an initial inferred resource base of 73.5 M tonnes containing 102 M Oz Ag, 3.2 M tonnes Zn, 1.5 M tonnes Pb and 121 K tonnes Cu. The project is to see 44,000 m of drilling during 2020, with a cost of US$7.5 M.
  • Listed mining companies in the Mexican Stock Exchange (Bolsa Mexicana de Valores, or BMV) had a good week. Grupo Mexico was up 5.9%, Industrias Peñoles 1.9%, Orbia (Mexichem) 5.75% and Cemex 8.91%.
  • The president of Mexico, Andrés Manuel López Obrador (also known as AMLO) assured this week that no concession has been delivered on his term for lithium exploitation. (In fact, the delivery of all mining concessions has been halted indefinitely by the actual government).

ON EXPLORATION

  • Riverside Resources Inc. reported on surface sampling and field work at its El Cuarenta project in Sonora. Three prospective targets were identified: Santa Rosalía, Santa Rosalía Sur and El Sombrero, with sampling returning five samples of sixteen above 5 gpt Au, and a best result of 25.7 gpt Au. The Santa Rosalía target consists of multiple sub-parallel low sulfide quartz veins on a fault zone 1 Km long in volcanic rocks. At Santa Rosalía Sur there is an 800 m long structural zone in volcanic rocks with shallow dipping sheeted quartz veins showing banded quartz and lattice textures. El Sombrero displays extensive alteration and high temperature alteration minerals like dickite, pyrophyllite and kaolinite, as well as a highly silicified cap.
  • Minaurum Gold Inc. completed its phase I drill program at the Alamos Silver project in Sonora, testing 19 of the 25 identified vein systems with 18,810 m in 40 holes.. Fourteen of the nineteen vein systems returned high-grade silver intercepts, on a 10 km long by 6 km wide corridor. Highlighted intervals from the last round of drilling comprise: 7.60 m @ 155 gpt Ag, including 2.15 m @ 470 gpt Ag; 0.20 m @ 367 gpt Ag, 6.75 gpt Au, 1.35% Cu, 0.59% Pb, 0.56% Zn at the Púlpito and Cotera veins. 6.60 m @ 1.94% Cu, 0.5% Pb, 1.5% Zn at the Alessandra vein. 1.1 m @ 729 gpt Ag, 1.73 gpt Au, 0.13% Cu, 3.0% Pb, 5.7% Zn at the Promontorio vein. 0.50 m @ 160 gpt Ag at La Dura vein. 1.05 m @ 245 gpt Ag, 0.74% Cu, 0.4% Pb, 0.7% Zn at Las Animas vein. And 7.35 m @ 47 gpt Ag on the Rosario vein. “Phase II is expected to commence in late-March and will include a minimum of 20,000 m of drilling”.
  • Mexus Gold US. is to look for a JV on its Mabel and Ures properties in Sonora. The Mabel property has 611 holes in 6 drilling campaigns since 2002. In the Ures property the targets are a porphyry copper system and high grade silver.
  • Advance Gold Corp. released drill results from one drill hole at its Tabasqueña project in Zacatecas. The first hole into a 1000 x 500 m chargeability anomaly returned 78 m of continuous zinc mineralization, including 1.10 m @ 1.88% Zn, 1.40% Pb, 77 gpt Ag, 0.20 gpt Au and 34 m @ 23 gpt Au, and 1.10 m @ 101 gpt Ag, 0.59% Pb, 0.74% Zn.

ON MINING

  • Argonaut Gold Inc. released production results for 2019 and the fourth quarter 2019. During 2019 the company produced 186,615 Oz AuEq, with 47,521 Oz AuEq produced during the Q4. During the same quarter production at El Castillo complex in Durango was 34,899 Oz AuEq (13,896 Oz AuEq from El Castillo and 21,003 Oz AuEq from San Agustin), and 12,622 Oz AuEq at La Colorada, in Sonora. For 2019, total production was 131,727 Oz AuEq at El Castillo Complex and 55,338 Oz AuEq at La Colorada.
  • Coeur Mining Inc. announced production results for full year 2019 and fourth quarter 2019, including figures from Mexico. At Palmarejo, in Chihuahua, 1.76 M tonnes were milled @ 2.49 gpt Au, 151 gpt Ag, recovering 84.3% Au, 79.3% Ag, to produce 111,932 Oz Au, 6.84 M Oz Ag during the year. During the last quarter 486.8 K tonnes were milled @ 2.18 gpt Au, 159 gpt Ag, recovering 84.9% Au, 81.7% Ag, to produce 28,702 Oz Au, 1.98 M Oz Ag.
  • Gold Resource Corp. provided full-year 2019 and fourth quarter 2019 production results, including figures from its Mexican operations. Production for 2019 in its Oaxaca Mining Unit was 29,435 Oz Au, 1.7 M Oz Ag, 1,859 tonnes Cu, 9,202 tonnes Pb, 23,683 tonnes Zn; during the first quarter 7,554 Oz Au, 417.9 K Oz Ag were produced.
  • Premier Gold Mines Ltd. released production results for the fourth quarter and full year 2019, including figures from its Mexican operations. At Mercedes, 12,274 Oz Au, 44.8 K Oz Ag were produced during the fourth quarter, adding up to 59,901 Oz Au, 191.3 K Oz Ag for the year. The production Guidance for 2020 is 65-75 K Oz Au at cash cost $850-$875 per Oz and all-in sustaining costs of $1,125-$1,275 per Oz.
  • Sierra Metals Inc. reported fourth quarter and full year 2019 production results, including figures from its Mexican operations. At Bolivar, in Chihuahua, 348.4 K tonnes were processed at a 3,982 tpd rate and a grade of 0.87% Cu, 21 gpt Ag, 0.32 gpt Au, recovering 84.8% Cu, 78.7% Ag, 62.3% Au to produce 5.66 M Lb Cu, 185 K Oz Ag, 2,216 Oz Au during the fourth quarter; and 1.27 M tonnes were processed at a rate of 3,628 tpd @ 0.85% Cu, 20 gpt Ag, 0.27 gpt Au, recovering 83% Cu, 79.2% Pb, 63.5% Zn to produce 19.83 M Lb Cu, 640 K Oz Ag, 6,794 Oz Au during the year. At Cusi, in Chihuahua, 61.4 K tonnes were processed at a rate of 702 tpd, at a grade of 210 gpt Ag, 0.14 gpt Au, 0.23% Pb, 0.23% Zn, recovering 79.8% Ag, 28.4% Au, 74% Pb, 0% Zn to produce 190 K Oz Ag, 78 Oz Au, 232 K Lb Pb during the quarter; and 285.2 K tonnes processed at a daily rate of 815 tpd at a grade of 129 gpt Ag, 0.15 gpt Au, 0.2% Pb, 0.2% Zn, recovering 79.1% Ag, 36.1% Au, 75.4% Pb, 0% Zn, to produce 936 K Oz Ag, 493 Oz Au, 904 K Lb Pb for the year.
  • First Majestic Silver Corp. announced 2020 production and cost guidance. San Dimas (Durango), La Encantada (Coahuila) and Santa Elena (Sonora) are the mines to continue in operation, while production has been halted at San Martin (Jalisco) and Del Toro (Zacatecas). The projected AISC is to be in the $13.37-$15.46 range per Oz Ag. At San Martin the mine is closed since mid-2019 due to security concerns, while at Del Toro, 22,450 m of exploration drilling are planned to develop new resources.First Majestic 2020 Guidance1

ON FINANCING

  • Silver Spruce Resources Inc. filed an amendment on the TSX Venture Exchange about the letter of agreement signed with ProDeMin, under which Silver Spruce is required to issue 1.7 M shares. Of those, 1.5 M shares are to be issued to ProDeMin and 200 K shares to the land owners of the Cocula project, in Jalisco (Pino de Plata, Chihuahua).

ON RESOURCES AND DEVELOPMENT

  • Minera Alamos Inc. informed that construction is ongoing at its Santana project in Sonora. The estimated construction time is six to eight months. During January and February is to start preparing the surfaces for leach pads and tailings dam, as well as roads on the mining area.
  • Argonaut Gold Inc. provided an update on its development projects. At San Antonio in Baja California Sur, Argonaut is looking at a probable non-monetary, book value decrement due to the uncertainty of obtaining the needed permits for development. The company is reviewing its options, like looking for zoning regulations changes, a revised environmental application and legal action options. At Cerro El Gallo, in Guanajuato, a “Documento Técnico Unificado” (several studies bundled together, needed to start development of the project) during the second quarter 2019. SEMARNAT asked for several minor changes and re-submittal, which is to be done during 2020 first quarter. SEMARNAT is to have 60 days to present its decision afterwards. Argonaut is also evaluating the possibility of producing fewer ounces in 2020, while improving the cash flow.
  • SilverCrest Metals Inc.released additional in-fill and expansion drill results from 71 holes on the Babi Sur vein at its Las Chispas project in Sonora. The current drilling has augmented the vein averages from 0.95 m (true width) @ 4.10 gpt Au, 268 gpt Ag (575 gpt AgEq) to 1.7 m tw @ 9.82 gpt Au, 382 gpt Ag (1,119 gpt AgEq). These results suggest a wider and higher grade vein than estimated in the previous resources, still open on strike and at depth. Currently there are 17 drill rigs working from the surface, and two from underground. The best drill holes returned true widths of 2.5 m @ 90.98 gpt Au, 108 gpt Ag (6,931 gpt AgEq); 7.8 m @ 10.53 gpt Au, 79 gpt Ag ((877 gpt Ag); 2.8 m @ 12.91 gpt Au, 1,141 gpt Ag (2,109 gpt AgEq).
  • Impact Silver Corp. announced results of a sampling program in the Veta Negra area on its Zacualpan property in Estado de Mexico. At Veta Negra two parallel veins averaging 14 m in width at an historic open pit, with a 650 m strike length. At the open pit about 50 m of vein strike were sampled, averaging 22.70 m @ 206 gpt Ag, 0.02 gpt Au, 0.14% Pb, 0.31% Zn on the El Socorro vein, and 16.02 m @ 208 gpt Ag, 0.13 gpt Au, 0.41% Pb, 0.56% Zn on the Veta Negra vein. A sub parallel vein 120 m from the Veta Negra returned up to 1.20 m @ 59 gpt Ag, 2.11 gpt Au, 0.19% Pb, 0.11% Zn; 1.30 m @ 286 gpt Ag, 1.07 gpt Au, 0.27% Pb, 0.05% Zn; 0.80 m @ 1,595 gpt Ag, 0.64 gpt Au, 0.19% Pb, 0.06% Zn; 0.80 m @ 309 gpt Ag, 1.53 gpt Au, 0.31% Pb, 0.06% Zn; 0.80 m @ 70 gpt Ag, 13.85 gpt Au, 0.21% Pb, 0.09% Zn; 1.90 m @ 215 gpt Ag, 1.04 gpt Au, 0.22% Pb, 0.08% Zn.
  • Mexus Gold US. began mining on the Julio vein/shear zone  via a 300 x 20 m open pit at its Santa Elena mine in Sonora (not to mistake with First Majestic’s Santa Elena mine, also in Sonora). Mined material was crushed and added to the heap leach facilities, with ore assaying 4 gpt Au, and as high as 16 gpt.
  • GoGold Resources Inc. released results from nine more drill holes at Los Ricos project in Jalisco. Highlighted hole length intervals comprise 16.8 m @ 0.36 gpt Au, 86 gpt Ag (1.51 gpt AuEq); 17.1 m @ 0.21 gpt Au, 60 gpt Ag (1.01 gpt AuEq), including 4.5 m @ 0.60 gpt Au, 104 gpt Ag (1.99 gpt AuEq); 18.9 m @ 2.01 gpt Au, 496.4 gpt Ag (8.63 gpt Au), including 5.0 m @ 7.30 gpt Au, 1,833 gpt Ag); 22.7 m @ 0.63 gpt Au, 65 gpt Ag (1.49 gpt AuEq), including 6.7 m @ 1.76 gpt Au, 114 gpt Ag (3.28 gpt AuEq); 12.9 m @ 0.57 gpt Au, 96 gpt Ag (1.86 gpt AuEq), including 6.5 m @ 1.08 gpt Au, 175 gpt Ag (3.41 gpt AuEq); 13.9 m @ 0.62 gpt Au, 80 gpt Ag (1.69 gpt AuEq), including 5.8 m @ 1.34 gpt Au, 141 gpt Ag (3.23 gpt AuEq).
  • Mexican Gold Corp. released drilling results on its Las Minas project, Veracruz. The 13 holes targeted a TEM anomaly, infill at El Dorado, Cinco Señores and Pueblo Nuevo zones. One hole at the TEM anomaly intersected endo skarn and is a good guide to further drilling; Two holes on El Dorado infill intersected higher grade mineralization than expected, a third one did not reach the sought contact zone; The two holes at Cinco Señores did not intersect the contact; At Pueblo Nuevo, drilling intersected several gold bearing veins, without the high gold and base metal values sampled at surface. Highlighted results comprise: 19.5 m tw @ 0.95 gpt Au,4 gpt Ag, 1.30% Cu; 6.0 m tw @ 1.36 gpt Au, 5 gpt Ag, 1.08% Cu; 5.2 m @ 8.94 gpt Au (including 2.0 m @ 21.37 gpt Au); 0.7 m @ 3.23 gpt Au; 0.9 m @ 2.69 gpt Au; 0.95 m @ 2.71 gpt Au.
  • Prime Mining Corp. announced surface results from trenches and road cuts from its Los Reyes project in Sinaloa. These samples show gold grades over significant widths in an area outside the historical resource at El Zapote North and South. Road cut sampling returned 24.5 m @ 7.94 gpt Au, 59 gpt Ag; 13.5 m @ 12.17 gpt Au, 71 gpt Ag; 27.0 m @ 1.53 gpt Au, 25 gpt Ag; 37.5 m @ 0.76 gpt Au, 18 gpt Ag. Surface trenching at Zapote Central returned 30.0 m @ 3.93 gpt Au, 40 gpt Ag; 7.5 m @ 8.71 gpt Au, 60 gpt Ag; 10.5 m @ 0.88 gpt Au, 62 gpt Ag; 25.5 m @ 0.33 gpt Au, 15 gpt Ag.
  • GR Silver Mining Ltd. (Goldplay Exploration Ltd.) updated on its exploration results for 2019 at its San Marcial project in Sinaloa. Late 2019 drill holes returned up to 28.7 m @ 92 gpt Ag, including 13.75 m @ 154 gpt Ag and 0.6 m @ 138 gpt Ag, 0.56 gpt Au. High-grade depth extensions are to be sought by underground drilling below the current resource. XRF litho-geochemistry for target generation has re-commenced and due diligence work started on the potential acquisition of the Plomosas and La Trinidad projects.

ON DEALS AND CORPORATE ISSUES

  • Santacruz Mining Ltd. acquired by staking the La Pechuga property in Hidalgo. The mining concession (application??) covers 3,025 ha 25 km SE from the Zimapan mine. Several historic mines are developed in 3-8 m wide carbonate replacement or skarn mineralization hosted on El Doctor Formation limestone. Previous sampling by the SGM (Servicio Geológico Mexicano) reported up to 770 gpt Ag, 0.50 gpt Au, 21.9% Pb, 13.4% Zn, 0.47% Cu.
  • Leagold Mining Corp. announced a recommendation by advisory firms for a favorable vote on a proposed merger with Equinox Gold Corp., on the special meeting to be held on January 28, 2019 (Leagold: Los Filos, Guerrero. Equinox: Mesquite, California, USA).

ON SOCIAL RESPONSIBILITY

  • The Mining Fund allocated the resources needed for the rehabilitation of the sports field in Santa Barbara, Chihuahua. The facilities were inaugurated by Antonio Bilbao, president of the Municipality, where 336 square meters were rehabilitated, with lighting and other improvements performed, counting on a total investment of $796,381 pesos. Approximately 500 inhabitants benefit with the resources provided by the Mining Fund..
  • Esperanza Silver (Alamos Gold) is to start operations at its Esperanza project in Tetlama, Morelos, by the end of 2020 or early 2021. The company has initiated to inform the communities on the permits obtained and the remaining, in the high margination zone. The project is proposed as “Nuevo Modelo de Minería Social y Ambientalmente Responsable” (A New Model on Socially and Environmentally Responsible Mining), promoting community development, with the respect to human rights and social and environmental issues standing prominently in the company model. By this approach the project would stick by the rules set by the UNO 2030 schedule, with plans for Social Management, Cultural Management and Economic Management. To eradicate poverty, mining can pay taxes and royalties, develop local supply lines, strengthen local value chains, promote inclusive employment, preserve land access, conservation and recycling of water, water management, improve energy efficiency, incorporate renewable energy and keep the public aware of opportunities and limitations.
  • Minera San Xavier formalized the delivery of the company’s silver jewelry shop, “La Victoria”. The shop is located on the historic down town of Cerro San Pedro, in San Luis Potosí, with the sale were included the machinery, tools and silver inventory. The shop was offered to employees and workers of Minera San Xavier through an open bid, of which Mónica Daniela Fierros obtaining the shop by presenting a plan with continuing local team, sustainability, innovation, creativity, quality and leadership.
  • Guerrero’s Governor, Héctor Astudillo, signed an agreement with Minera Media Luna and the Cocula Municipalty, to pave 5 km of road between Real del Limón-La Fundición, benefiting more than 1,200 inhabitants. Each of the agreement signers is to deliver $5 M pesos for the construction work.

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

On the image below: Underground picture of a quartz vein in an orogenic gold system of Oaxaca, by Jorge Cirett.

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