Estado de Mexico

The Mining and Exploration News in Mexico: Highlights on the Third Week of April 2025

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By Jorge Cirett

During the 16th week of the year (April 14th to April 20th, 2025), companies working in Mexico presented 25 press releases. Three companies informed about exploration on their properties. Five companies reported quarterly/yearly results. Three companies informed on financing rounds, one on its incentive plan, one more on the coming exercise of warrants and another on the exercise of an over-allotment option. One company completed the sale of its only operating mine in Mexico, another one informed on a recommendation to proceed with a merger, one more on the completion of the acquisition of a property out from Mexico and one more on the appointment of a new CEO. ON MEXICO ISSUES, no relevant news.  ON EXPLORATION, in Sonora, Tocvan Ventures and Colibri Resource presented drilling results from Gran Pilar/El Pilar. In Durango, Pinnacle Silver and Gold updated on work at El Potrero. ON MINING, Orla Mining, Golden Minerals, Elemental Altus Royalties, Sierra Metals, Avino Silver & Gold Mines and Bear Creek mining reported their quarterly/yearly results. ON FINANCING, companies announcing different stages of financing rounds include Silver Tiger Metals (C$15 M), Kingsmen Resources (C$1.5 M) and Impact Silver (C$5 M). Osisko Development informed on the listing of warrants, Minera Alamos is implementing an omnibus incentive plan and Endeavour Silver informed on the over-allotment exercise for US$5 M. ON RESOURCES AND DEVELOPMENT, no relevant news. ON DEALS AND CORPORATE ISSUES, Fortuna Mining completed the sale of the San Jose Mine in Oaxaca. Equinox Gold informed on the recommendation to shareholders of Equinox for the merger with Calibre Mining. Discovery Silver completed the acquisition of a significant property out from Mexico. Regency Silver appointed a new CEO. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • No Relevant News.

ON EXPLORATION

  • Tocvan Ventures Corp. presented results of the remaining three holes of the 1,167.5 m diamond drill program at the Gran Pilar project in Sonora, within the majority owned (51%) Main zone of held in partnership with Colibri Resource Corp. Highlighted results comprise 46.85 m @ 0.48 gpt Au, 5 gpt Ag, 0.2% Zn (including 2.55 m @ 7.21 gpt Au, 80 gpt Ag, 0.3% Pb, 3.0% Zn); 0.80 m @ 0.11 gpt Au, 17 gpt Ag, 1.58% Cu.
  • Pinnacle Silver and Gold Corp. updated on work at its Potrero project in Durango. Surface mapping has extended the vein system along strike for 1,100 m, with 46 samples collected for assaying. Cleaning of underground workings has been completed at Pinos Cuates, La Dura and Dos de Mayo, with 86 samples collected at Pinos Cuates. “…. the vein system is at least 125 metres wide at this locality. Vein widths have been measured as ranging from 0.50 metres on surface up to 7 metres underground at Pinos Cuates”. Mineralization at Pinos Cuates consists of vein breccia with clasts of host rocks, colloform quartz, chalcedonic quartz, and bands of opaque quartz with ginguro texture.
  • Colibri Resource Corp. presented the assay results from three holes drilled at El Pilar, in Sonora, by its partner Tocvan Ventures Corp. Highlighted core length results comprise 46.85 m @ 0.48 gpt Au, 5 gpt Ag, 0.2% Zn (including 2.55 m @ 7.21 gpt Au, 80 gpt Ag, 0.3% Pb, 3.0% Zn); 0.80 m @ 0.11 gpt Au, 17 gpt Ag, 1.58% Cu.

ON MINING

  • Orla Mining Ltd. provided an operational update for Q1 2025. At Camino Rojo, in Zacatecas, Orla mined nearly 1.9 M tonnes of ore and 2.8 M tonnes of waste (1.48 strip rate), stacking 18.4 K tonnes for a total of 1.7 M tonnes stacked averaging 0.78 gpt Au, to produce 47,759 Oz Au in the period.
  • Golden Minerals Co. reported full year 2024 results. In February 2024 the company suspended mining operations at Velardeña, in Durango, and subsequently sold the property to a privately held Mexican company for US$5.5 M in cash plus VAT. The company is still owed US$0.2 M plus VAT. Later on the year was sold the Mexican subsidiary holding tax losses to a private Mexican company. In November 2024 the company sold its Yoquivo project in Chihuahua for US$0.57 plus VAT.
  • Elemental Altus Royalties. Announced its operating and financial results For Q4 and full year 2024. During Q4 Elemental had revenue of US$5.5 M, with 2,552 Oz AuEq attributable. For the year, revenue of US16.3 M and adjusted revenue of US$21.6 M, with 8,987 Oz AuEq attributable (Mercedes, Sonora).
  • Sierra Metals Inc. reported first quarter 2025 production results, including figures from its Mexican operations. At Bolivar, in Chihuahua, 4,839 tpd were processed averaging 0.71% Cu, 17.3 gpt Ag, 0.29 gpt Au, recovering 89.92% Cu, 81.23% Ag, 66.42% Au, to recover 5.97 M Lb, Cu, 191 K Oz Ag, 2,604 Oz Au.
  • Avino Silver & Gold Mines Ltd. delivered Q1 2025 production results. At the Avino Mine in Durango, 167.8 K tonnes were milled with an average grade of 58 gpt Ag, 0.55 gpt Au, 0.50% Cu, recovering 85% Ag, 75% Au, 87% Cu, to produce 265.7 K Oz Ag, 2,225 Oz Au, 1.6 M Lb Cu. Avino has started underground development work at La Preciosa after receiving all required permits. “Significant progress continues at La Preciosa mine. Blasting and construction of the relatively short 360 metre decline is underway and equipment mobilization has been swift, … The new jumbo drill is working on the San Fernando haulage ramp as it progresses toward intercepting the Gloria and Abundancia veins”.
  • Bear Creek Mining Corp. reported its annual consolidated financial results for 2024. Events that occurred during the year include: restructuring the agreement with Sandstorm Gold Ltd., which reduced the gold deliverables by 325 Oz Au per month, the amendment of the US$22.5 M Sandstorm convertible debenture, granting a NSR on the Corani (Peru) asset and issuing share consideration to Sandstorm; produced 40,220 Oz Au, 217.7 K Oz Ag; recorded a non-cash impairment charge of US$27.2 M. During the year the company mined 106.4 K tonnes at Mercedes, in Sonora, processing 400.7 K tonnes averaging 3.30 gpt Au, with a recovery of 95% Au, to produce 40.2 K Oz Au, 217.7 K Oz Ag, at an AISC of $1,888 per Oz Au. Underground development of 10,464 m during the period.

ON FINANCING

  • Osisko Development Corp. announced that 51.1 M share purchase warrants issued between October and November 2024 will be listed for trading on the TSX Venture Exchange. Each warrant entitles the holder to purchase one common share of Osisko at US$3.00 per common share (San Antonio, Sonora).
  • Silver Tiger Metals Inc. closed its bought deal offering of common shares for gross proceeds of C$15 M (El Tigre, Sonora).
  • Kingsmen Resources Ltd. arranged a non-brokered private placement financing to raise up to C$1.5 M (Las Coloradas, Chihuahua).
  • Minera Alamos Inc. received approval from the TSX Venture Exchange for the implementation of the omnibus incentive plan. “The Omnibus Incentive Plan is a ten percent (10%) rolling plan of issued and outstanding common shares, pursuant to which the Board of Directors may grant stock options, restricted share units and deferred share units to acquire common shares from time to time” (Santana, Sonora).
  • Impact Silver Corp. announced a non-brokered private placement of C$3.5 M with lead orders from Trafigura PTE Ltd. and Palisades Goldcorp Ltd. “The non-brokered private placement will consist of a LIFE offering for $1.75 million, which is being fully allocated to Trafigura, and a standard private placement for $1.75 million, of which Palisades is participating for $1.1 million” (Plomosas, Chihuahua).
  • Endeavour Silver Corp. informed the underwriters of its past financing have exercised its over-allotment option, for additional gross proceeds of US$4.99 M, for total gross proceeds from the offering of US$50 M. The proceedings are to fund part of the purchase of the Huachocolpa Uno mine in Peru (Terronera, Jalisco).
  • Impact Silver Corp. amended its previously released non-brokered private placement from C$3.5 M to aggregate gross proceeds of up to C$5.0 M. The non-brokered private placement will still consist of a LIFE offering for C$1.75 M, which is being fully allocated to Trafigura, and a standard private placement for C$3.25 M (Plomosas, Chihuahua).  

ON RESOURCES AND DEVELOPMENT

  • No Relevant News.

ON DEALS AND CORPORATE ISSUES

  • Fortuna Mining Corp. completed the sale of its 100 percent interest of the San Jose mine in Oaxaca to JRC Ingeniería y Construcción S.A.C., a private Peruvian company. The purchase agreement envisages the payment of US$6.4 M, the payment of US$1.2 M for pre-paid working capital items and tax receivables and the rights to receive up to US$8.3 M upon the completion of certain conditions. “Fortuna successfully built, expanded, and operated the underground San Jose mine for thirteen years, developing it into one of the 12 largest primary silver producers in the world for several years”.
  • Equinox Gold Corp. announced that independent proxy advisory firms Institutional Shareholder Services Inc. and Glass, Lewis & Co. issued positive voting recommendations to shareholders of Equinox Gold for the proposed business combination with Calibre Mining Corp. (Los Filos, Guerrero).
  • Discovery Silver Corp. reported the completion of the acquisition of the Porcupine operations from Newmont Gold (Cordero, Chihuahua).
  • Regency Silver Corp. appointed Bruce Bragagnolo as CEO of the company (Dios Padre, Sonora).

ON SOCIAL RESPONSIBILITY

  • No Relevant News.

On the image below: Flow banded felsic dike on a Sonora Desert project. Picture by Jorge Cirett.

Mexico’s Best Drilling Intercepts, First Quarter 2025

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Twenty companies released results from drilling programs in Mexico during the first quarter of 2025. The highest gold intercept was at Heliostar’s Ana Paula project in Guerrero, with 161 m averaging 4.26 gpt Au, including a 30 m subinterval just over 10 gpt Au. The drilling program at this project was focused on definition of the High Grade Panel, aiming to strengthen the case for underground mining.

The Ana Paula and Media Luna projects display the highest grades by a fair margin in the table below; The two are part of the Guerrero Gold belt, which is characterized mainly by skarn deposits, but with significant mineralization at Ana Paula in sulfide rich breccias and a late epithermal overprint. Other projects displaying skarn mineralization include Cerro Las Minitas in Durango, Bolivar in Chihuahua and La Parrilla in Durango. Bolivar is probably distal to a porphyry copper system, and at La Parrilla carbonate replacement (CRD) style mineralization is present, along with skarn and intermediate sulfidation epithermal mineralization.  

Low sulfidation epithermal deposits are the most ubiquitous in the table, including Copalquin, Coneto and San Dimas in Durango, Santa Elena, Cecilia and El Tigre in Sonora and Bolañitos in Guanajuato. La Colorada in Sonora is still in this category, with a question mark until a visit erases some doubts. One deposit straddling the low sulfidation to intermediate sulfidation epithermal categories is Los Reyes, in Sinaloa. Projects with intermediate sulfidation epithermal mineralization comprise Tahuehueto in Durango, Alamos Silver in Sonora and Zacualpan in Estado de México.  Two deposits that display intermediate sulfidation epithermal characteristics, that are probably distal to porphyry copper systems are Gran Pilar/Pilar in Sonora and Cristina in Chihuahua.

Summarizing, five deposits show skarn and/or CRD mineralization, while twelve more display low and intermediate sulfidation epithermal mineralization, one of which straddles these categories and two seem to be distal to porphyry copper systems.

The Mining and Exploration News in Mexico: Highlights on the Second Week of December 2024

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By Jorge Cirett                                             

During the 50th week of the year (December 9th to December 15th, 2024), companies working in Mexico posted at least 28 press releases. Not a single company informed on exploration advances at its property, two companies presented quarterly results, one company was ordered to suspend operations, one more announced commercial production while another the re-start of heap stacking. Two companies informed on financing rounds, one on the granting of options, another on a share purchase plan, one on the evaluation of share consolidation and one more on the signing of service contracts. Six companies updated on drilling programs and one on a new MRE report for its property, one company started test mining and bulk sampling at its advanced property. One company published its annual handset book, two companies presented AGM results, three more announced appointments to the board, two companies informed on their amalgamation agreement, one more on the move of its headquarters and another one on the international arbitration proceedings against Mexico. One company published its sustainability report ON MEXICO ISSUES, Mexico is to review the proposed ban on open pit mining. ON EXPLORATION, no relevant news. ON MINING, GoGold Resources and Heliostar Metals presented quarterly reports. Torex Gold operations in Guerrero were mandated to halt by the government. Sierra Madre Gold and Silver announced commercial production at La Guitarra. Heliostar Metals intends to re-start stacking activities at La Colorada in Sonora. ON FINANCING, Tocvan Ventures and Quetzal Copper announced financing rallies for $2.1 M and C$3 M respectively. Sandstorm entered an automatic share purchase plan. Sierra Metals is considering a 20:1 share consolidation plan. Sierra Madre Gold and Silver granted stock options, Heliostar Metals signed services agreements with two companies, Defiance Silver made a clarification on the engagement of a service company. ON RESOURCES AND DEVELOPMENT, Silver Storm Mining released results from drilling at La Parilla, Mithril Silver and Gold updated on drilling at Copalquin, Defiance Silver announced a new MRE for Tepal, Pan American Silver reported drilling highlights for La Colorada and La Colorada Skarn, Prime Mining reported on expansion drilling at Los Reyes, Orla Mining updated on exploration at Camino Rojo. Fuerte Metals reported drilling results from Cristina, Vizsla Silver commenced test mining and bulk sampling at Panuco ON DEALS AND CORPORATE ISSUES, Elemental Altus Royalties published its annual handset handbook. Defiance Silver and Zacatecas Silver announced AGM’s results. Orla Mining and Luca Mining announced appointments to the board. Enduro Metals and Commander Resources announced its amalgamation agreement. US Antimony announced the move of its headquarters. Almaden Minerals informed on the international arbitration process under the TPP with Mexico. ON SOCIAL RESPONSIBILITY, Capstone Copper published its 2023 sustainability report.

ON MEXICO ISSUES

  • Mexico is to review the proposed bill to ban open pit mining, announced Claudia Shienbaum, Mexico’s president.  The proposal was approved by the lower chamber of Congress in August, and also seeks to prohibit fracking and restrict water usage in areas of scarcity. She emphasized that the review will focus on ensuring environmental protection and is independent of corporate interests. “The Mexican Mining Chamber (Camimex) has voiced strong opposition to the proposed ban. Open-pit mining accounts for 60% of the value of Mexico’s national mining and metallurgical production. Camimex warns that the prohibition could lead to a 1% contraction in the country’s GDP and jeopardize nearly 200,000 jobs.”

ON EXPLORATION

  • No Relevant News.

ON MINING

  • Torex Gold Resources Inc. updated on the carbon monoxide accident that claimed the lives of two employees and one contractor and injured a second contractor. The company commenced its “own internal investigation to determine how, despite multiple levels of safety protocols and controls, such a tragedy could have occurred…. Two experienced individuals went into a restricted area where carbon monoxide was present, and in an effort to rescue their colleagues who suffered exposure, two other individuals entered the area as well. Three of the individuals passed away as a result, while the fourth was transported to a local hospital and is now at home recovering”.
  • Torex Gold Resources Inc. received notification from the DGM (Dirección General de Minas) that all activities are to be temporarily suspended at the Morelos property in Guerrero, “to support their inspection associated with the fatal incident at the El Limón Guajes underground mine” on December 5th, 2024.
  • Sierra Madre Gold and Silver Ltd. announced that industrial production has started at the Guitarra mine processing plant in Estado de México. “The plant has been operating at 86% of the milling circuit nameplate capacity, or 516 wet metric tonnes per day, for the last two (2) months”. During October 13.2 K tonnes were processed to recover a concentrate containing 21.2 K Oz Ag, 295 Oz Au, and 13 K tonnes were processed in November to recover a concentrate containing 22.9 K Oz Ag, 363 Oz Au.
  • GoGold Resources Inc. announced financial results for the three months and full year ended on September 30, 2024. The company had revenue of US$36.5 M for the year on the sale of 1.4 M Oz AgEq, with net income of $1.6 M, production of 553.4 K Oz Ag, 8,700 Oz Au, 468 tonnes Cu, 316 tonnes Zn (or 1.48 M Oz AgEq), at cash cost of $17.62 per Oz AgEq and an AISC of $24.15. Cash of US$72.0 M at the end of the period.
  • Heliostar Metals Ltd. announced its intentions to recommence crushing and stacking in January 2025 of the historical Junkyard Stockpile at the Colorada Mine in Sonora. “The planned restart would initially augment and then replace the current gold production from residual leaching at the mine”. The stockpile is located close to the La Colorada crushing circuit, containing material mined from the Gran Central Pit in the mid to late 1990’s. “Drill holes were completed on a ~35-metre grid across the stockpile with some drill holes completed on a 7-metre grid for variability testing. In total, 57 holes totalling 2,290 metres were completed”.
  • Starcore International Mines Ltd. reported results for its Q2, ended in October 31, 2024. During the period the company processed 48.2 K tonnes at its San Martin mine in Queretaro, grading 1.1 gpt Au, 9.81 gpt Ag, recovering 80.3% Au, 49.2% Ag, to produce 1,400 Oz Au, 7.6 K Oz Ag (or 1,466 Oz AuEq) at cash cost $2,746 per Oz Au. “This quarter reflects the 2-month closure of mining operations due to the safety standards upgrades that were required by the Mexican Labor Department,,,” after a fatal accident at the mine. Cash on hand is C$3.7 M and working capital C$4.1 M.

ON FINANCING

  • Sierra Madre Gold and Silver Ltd. granted stock options to two new employees of the company to purchase an aggregate of 300 K common shares (La Guitarra, Estado de México).
  • Sandstorm Gold Ltd. entered into an automatic share purchase plan under its previously announced normal course issuer bid. The company’s at-the-market equity program for up to US$150 M of common shares expired in October with no shares being issued under the program. Sandstorm renewed its revolving credit agreement allowing the company to borrow up to US$625 M (Royalty in Cosalá, Sinaloa).
  • Tocvan Ventures Corp. closed a first tranche of its previously announced non-brokered private placement for gross proceeds of $2.1 M, including $1.8 M from Sorbie Bornholm LP, a UK based institutional investor (Gran Pilar, Sonora).
  • Sierra Metals Inc. is to hold a special meeting of shareholders on January 31, 2025, to seek authorization from shareholders to consider a consolidation of all the company’s issued and outstanding common shares on 1 to 20 ratio (Bolivar, Chihuahua).
  • Heliostar Metals Ltd. entered into an agreement with Triomphe Holdings Ltd. for an initial term of six months and C$120 K, and Investors News Network with a term of three months and C$25 K, for investor relations and communication services (Ana Paula, Guerrero).
  • Defiance Silver Corp. made a clarification on the engagement of Torrey Hills Capital Inc. to provide investor relation. Torrey is to receive a monthly payment of US$5 K per month for a minimum of four months (Tepal, Michoacan).
  • Quetzal Copper Corp. announced a non-brokered private placement for aggregate gross proceeds of up to C$3 M (Cristinas, Chihuahua).

ON RESOURCES AND DEVELOPMENT

  • Silver Storm Mining Ltd. released results from drilling at La Parrilla Silver Mine Complex, in Durango. Three high-grade zones within the Central Rosarios at the Rosario mine span 275 m in strike length down to a depth of ~600 m remaining open at depth. Highlighted core length intercepts comprise 1.50 m @ 74 gpt Ag, 2.4% Pb, 3.1% Zn; 1.00 m @ 22 gpt Ag, 0.4% Pb, 4.4% Zn; 0.60 m @ 354 gpt Ag, 0.09% Cu, 5.4% Pb, 2.0% Zn; 1.76 m @ 103 gpt Ag, 1.4% Pb, 1.4% Zn; 4.23 m @ 0.25 gpt Au, 150 gpt Ag, 2.6% Pb, 3.6% Zn (including 1.81 m @ 0.31 gpt Au, 296 gpt Ag, 4.3% Pb, 5.5% Zn).
  • Mithril Silver and Gold Ltd. provided an update on current drilling the Target 1 area at its Copalquin project in Durango. The first wo holes of this campaign are at the lab, the next on the way to the lab, two more are being logged and sampled and a sixth hole has been commenced. A maiden resource for the Target 1 area is scheduled for the end of Q1 2025. Two more areas are to be drilled once the ongoing municipal road upgrade by the company is completed, which will facilitate the 40,000 m of drilling planned for 2025.
  • Defiance Silver Inc. announced a mineral resource estimate (MRE) for its Tepal Au-Cu project in Michoacan. The open pit operation model comprises 111.7 M tonnes grading 0.19% Cu, 0.26 gpt Au, 1.55 gpt Ag, containing 473.9 M Lb Cu, 926 K Oz Au, 5.6 M Oz Ag as measured and indicated resources, and 124.4 M grading 0.16% Cu, 0.25 gpt Au, 1.46 gpt Ag, containing 451 M Lb Cu, 985 K Oz Au, 5.8 M Oz Ag. Molybdenum was not included due to insufficient metallurgical testwork, but moly grades are significant and its recovery will be assessed.
  • Pan American Silver Corp. provided its annual exploration update, including its Mexican operations. At La Colorada, in Zacatecas, 13 new veins have been discovered in the eastern portion of the property. Highlighted true width intercepts comprise 0.95 m @ 9,618 gpt Ag, 4.9% Pb, 4.8% Zn; 2.32 m @ 2,615 gpt Ag, 2.3% Pb, 5.2% Zn; 3.28 m @ 308 gpt Ag, 10.2% Pb, 13.1% Zn. The San Geronimo vein system covers now 550m along the strike by 450m vertical. From May to October almost 48,000 m of drilling have been carried out. At the nearby La Colorada Skarn “infill drilling reinforced confidence in the large, indicated mineral resource updated on June 2024”. Over 11,000 m of infill drilling have been completed since then with highlighted core length intervals comprising 273.1 m @ 54 gpt Ag, 0.8% Pb, 5.2% Zn; 62.55 m @ 84 gpt Ag, 2.0% Pb, 7.6% Zn; 60.25 m @ 85 gpt Ag, 7.0% Pb, 10.4% Zn.
  • Prime Mining Corp. reported expansion drilling results from its Los Reyes project in Sinaloa. The four holes tested Guadalupe East, on the south-east end of the Guadalupe Trend, and are not included in the mineral resource estimate (MRE) released in October. Highlighted true width intervals comprise 1.25 m @ 3.34 gpt Au, 617 gpt Ag (including 0.65 m @ 6.27 gpt Au, 1,160 gpt Ag); 0.95 m @ 14.25 gpt Au, 2,150 gpt Ag; 0.80 m @ 0.81 gpt Au, 1 gpt Ag; 2.35 m @ 1.80 gpt Au, 272 gpt Ag. The company has expanded its fiscal year 2024 program to 50,000 m from 40,0000 m, with “prioritization of targets on probability of resource development and generative area discovery potential”.
  • Orla Mining Ltd. provided an update on exploration of the Camino Rojo Extension, now referred to as Zone 22, at its Camino Rojo project in Zacatecas. Highlighted core length intercepts of 11,318 m in thirteen holes comprise: 4.90 m @ 4.54 gpt Au, 7 gpt Ag, 2.08% Zn; 6.60 m @ 1.01 gpt Au, 63 gpt Ag, 1.6% Cu, 0.1% Zn (including 1.20 m @ 3.08 gpt Au, 202 gpt Ag, 4.95% Cu, 0.2% Zn); 2.90 m @ 5.65 gpt Au, 27 gpt Ag, 0.1% Pb, 1.4% Zn; 4.90 m @ 4.54 gpt Au, 7 gpt Ag, 2.1% Zn; 2.70 m @ 30.70 gpt Au, 4 gpt Ag, 1.3% Zn (including 0.60 m @ 140.50 gpt Au, 9 gpt Ag, 0.16% Cu, 5.2% Zn); 2.00 m @ 0.83 gpt Au, 393 gpt Ag, 2.4% Pb, 8.8% Zn; 15.00 m @ 0.93 gpt Au, 25 gpt Ag, 0,91% Cu; 4.50 m @ 5.17 gpt Au, 215 gpt Ag, 0.14% Cu, 3.3% Pb, 4.6% Zn; 2.80 m @ 2.99 gpt Au, 269 gpt Ag, 0.16% Cu, 4.3% Pb, 6.8% Zn. Mineralization extends up to 800 m down-plunge from the resource pit. In addition to Au-Ag-Zn sulfide replacement and skarn mineralization, Zone 22 presents Cu-Au-Ag values associated to a felsic dike intersected primarily in the deepest down-plunge extension area.
  • Fuerte Metals Corp. reported results from five diamond holes at its Cristina project in Chihuahua. The holes reported are from the Los Ingleses and Mexico Libre vein systems, which returned true width intercepts of: 0.90 m @ 3.40 gpt Au, 6 gpt Ag, 0.1% Zn; 9.00 m @ 1.50 gpt Au, 42 gpt Ag, 0.18% Cu, 0.5% Pb, 2.5% Zn; 17.50 m @ 2.40 gpt Au, 23 gpt Ag, 0.5% Pb, 1.0% Zn (including 7.50 m @ 5.30 gpt Au, 40 gpt Ag, 0.16% Cu, 1.0% Pb, 2.0% Zn); 2.40 m @ 11.90 gpt Au, 69 gpt Ag, 0.25% Cu, 1.9% Pb, 4.0% Zn; 3.00 m @ 8.60 gpt Au, 95 gpt Ag, 0.40% Cu, 1.4% Pb, 6.2% Zn (including 1.80 m @ 14.20 gpt Au, 143 gpt Ag, 0.65% Cu, 2.2% Pb, 9.8% Zn). “Fuerte has now reported thirty holes totalling 7,936.5 metres of drilling as part of a 40-50 hole, 21,000 metre drill program”. An underground resource estimate will follow the completion of the 21,000 m program in Q3 2025.
  • Vizsla Silver Corp. commenced fully funded and fully permitted test mining and bulk sample program at its Panuco project in Sinaloa. The underground scope includes 1,070 m of ramp development, lateral access and ore extraction from the 460-level zone on the Copala structure, where approximately 10 K tonnes of high-grade material is to be mined. Surface infrastructure to be completed includes construction of portal facilities, access roads and laydown areas.

ON DEALS AND CORPORATE ISSUES

  • Elemental Altus Royalties Corp. published the 2024 edition of its Annual Handset Handbook, with information on the production, development and exploration stages royalties (Mercedes, Sonora).
  • Defiance Silver Corp. announced results from its AGM and the election of Pail A. Smith as director (Tepal, Michoacan; Zacatecas, Zacatecas).
  • Orla Mining Ltd. announced the appointment of Dr. Silvana Costa as Chief Sustainability Officer (Camino Rojo, Zacatecas).
  • Enduro Metals Corp. and Commander Resources Ltd. announced its amalgamation agreement pursuant to which Enduro and Commander will combine their operations creating a copper and gold explorer. Commander owns the Pedro project in Durango.
  • United States Antimony Corp. announced the move of its corporate headquarters to Dallas, Texas, from Thompson Falls, Montana. Additionally, Mr. Gary C. Evans assumed the chief executive role and continues as chairman of the board of directors, Mr. Joe Bardswich takes on the role of executive vice-president and chief mining engineer (Los Juarez, Queretaro).
  • Almaden Minerals Ltd. informed on the international arbitration proceedings under the comprehensive and progressive agreement for Trans-Pacific Partnership with Mexico. “The Claim is being prosecuted pursuant to the established and enforceable legal framework of the International Centre for Settlement of Investment Disputes. The Company is financing the Claim with up to US$9.5 million in non-recourse litigation funding”. The company and Mexico have appointed an arbitrator to the three-person arbitration panel, and the third and presiding arbitrator has also been appointed, with the first session held in Washington on November 20, 2024. “While the Company is vigorously pursuing this Claim, its preference is for a constructive resolution with Mexico that results in a positive outcome for all stakeholders” (Ixtaca, Puebla).
  • Luca Mining Corp. announced the appointment of Ramon Medoza Reyes, P. Eng as chief technical officer (Campo Morado, Guerrero).
  • Zacatecas Silver Corp. announced the results of its annual general meeting (AGM) and the resignation of Mr. John Lewins as a director of the company. Zacatecas Silver is evaluating upcoming exploration plans at the Zacatecas Silver project, that includes the Panuco Deposit, El Cristo vein system, San Gill breccia zone and Muleros zone. The company also holds the Esperanza project in Morelos, with 956 K Oz Au in resources in the measured and indicated categories and 277 K Oz Au as inferred.

ON SOCIAL RESPONSIBILITY

  • Capstone Copper Corp. published its 2023 sustainability report, highlighting its sustainable development strategy prioritizing climate, water, tailings, biodiversity and communities.

On the image below: Silicifed fault/vein ridges in Sonora. Drone picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the Second Week of August 2024

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By Jorge Cirett                                             

During the 32nd week of the year (August 5th to August 11th, 2024), companies working in Mexico posted at least 25 press releases. One company informed on exploration advances on a mining property, eleven companies provided operational/financial results for Q2 2024 and one hired a contractor for mining activities. One company closed the final tranche of its private placement. Four companies announced board appointments, one signed a LOI to acquire an AI company, another company received a cease trade order, two companies announced their merger and one more the amendment of an option on a property.  ON MEXICO ISSUES, no relevant news. ON EXPLORATION, In Sonora, Riverside Resources completed an aeromagnetic drone survey on Cecilia. ON MINING, Aura Minerals, Gold Resource, Fortuna Mining, Torex Gold, Pan American Silver, SilverCrest Metals, Coeur Mining, GoGold Resources, Equinox Gold, US Antimony and Sierra Metals presented second quarter 2024 reports. Luca Mining engaged a contractor to carry out core mining operations at Campo Morado. ON FINANCING, Heliostar Metals closed the final tranche of its non-brokered private placement. ON RESOURCES AND DEVELOPMENT, no relevant news. ON DEALS AND CORPORATE ISSUES, Golden Minerals, Aura Minerals, GR Silver and US Antimony announced board appointments. Tarachi Gold signed a LOI on the acquisition of AI company Prospector Portal Inc. Xali Gold received a cease trade order. Reyna Silver is to acquire all shares of Reyna Gold. Sonoran Desert Copper amended the option on Cuatro Hermanos project. Galore Resources announced a status report on its cease trade order. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • No Relevant News.

ON EXPLORATION

  • Riverside Resources Inc. completed with Fortuna Mining Inc. the acquisition and interpretation of an aeromagnetic drone survey at its Cecilia project in Sonora. The UAV magnetic data covers the entire 60 Km2 property, aiding to interpret and refine previous targets identified by Riverside.

ON MINING

  • Aura Minerals Inc. filed financial statements for Q2 2024, including guidance figures for its Mexican operations. At Aranzazu, in Zacatecas, 24,692 Oz Au Eq were produced during the period. Guidance at Aranzazu for the full year is 94 K to 108 K Oz AuEq at a cash cost between $826 and $1,009 per Oz AuEq and an AISC of 1,089 to $1,331 per Oz AuEq.
  • Luca Mining Corp. engaged Cominvi S.A. de C.V. to carry out core mining operations at its Campo Morado mine in Guerrero. Luca Mining intends to increase mill throughput from the current 1,400-1,600 tpd to 2,000 tpd by year end, ultimately aiming to reach 2,400 tpd mill rate in 2025.
  • Gold Resource Corp. announced second quarter operational results from its Don David Gold mine in Oaxaca. During the period 93,687 K tonnes were milled, averaging 1.27 gpt Au, 102 gpt Ag, 0.26% Cu, 1.0 % Pb, 2.59% Zn, to produce 2,947 Oz Au, 263 K Oz Ag, 181 tonnes Cu, 616 tonnes Pb, 2,020 tonnes Zn (or 5,625 Oz AuEq).
  • Fortuna Mining Corp. reported its financial and operating results for the second quarter of 2024, including figures from its operations in Mexico. The company’s consolidated production was 92,716 Oz Au, 990.6 K Oz Ag in the period. At San José, in Oaxaca, 176.2 K tonnes were milled at a rate of 1,980 tpd, averaging 140 gpt Ag, 1.09 gpt Au, recovering 87% Ag, 85% Au, to produce 684.2 K Oz Ag, 5,269 Oz Au, at a cash cost of $24.91 and an AISC of $27.55 per Oz Ag. “The San Jose Mine has less operational flexibility in 2024 compared to 2023, due to the reduced and more dispersed Mineral Reserves associated with the Trinidad deposit, which also increased mine costs. Ore processed decreased by 10% due to lower tonnes mined”.
  • Torex Gold Resources Inc. reported its financial and operational results for Q2 2024. At its Morelos mine complex in Guerrero, the company produced 113,822 Oz Au (recovering 90.5% Au) at cash cost $1,014 per Oz Au and an AISC of $1,239 per Oz Au. The company ended the quarter with $108.7 M in cash and $237.1 M available on credit facilities. The Media Luna project is 78% complete, with commissioning expected late in 2024.
  • Pan American Silver Corp. announced results for Q2 2024, including figures from its Mexican operations. At La Colorada, in Zacatecas, 835 K Oz Ag, 500 Oz Au were produced at cash cost $15.30 and an AISC of $17.09. At Dolores, in Chihuahua, 440 Oz Au, 18,100 Oz Ag were produced at cash cost $1,113 per Oz Au and an AISC of $2,496 per Oz Au. “At La Colorada, Pan American invested $9.8 million on project capital in Q2 2024, largely for exploration and engineering on the Skarn project, and to complete the new ventilation infrastructure for the operating mine”. The company expects to end the year with a 2,000 tpd production rate at La Colorada.
  • SilverCrest Metals Inc. released its financial results for Q2 2024. At Las Chispas, in Sonora, 100 K tonnes were mined, 110.6 K tonnes milled at an average rate of 1,216 tpd, averaging 4.36 gpt Au, 418 gpt Ag, recovering 98.6% Au, 98.3% Ag, to produce 15,303 K Oz Au, 1.46 M Oz Ag at cash cost $8.87 per Oz Ag and an AISC of $16.88. At the end of the period the company had $98.3 M in cash and $24 M in bullion.
  • Coeur Mining Inc. reported second quarter results for the second quarter 2024, including figures from its Mexican operations. At Palmarejo, in Chihuahua, 429.6 K tonnes were milled during the period, averaging 2.05 gpt Au, 139.7 gpt Ag, recovering 89.9% Au, 82.8% Ag, to produce 25,467 Oz Au, 1.6 M Oz Ag, at CAS $1,006 per Oz Au and CAS $15.24 per Oz Ag. During the quarter Coeur bought adjacent Fresnillo plc mining concessions, increasing the area of the project to over 16,100 hectares. Full-year 2024 production is expected to be 95,000 – 103,000 Oz Au, 5.9 – 6.7 M Oz Ag.
  • GoGold Resources Inc. announced financial results for the quarter ending on June 30, 2024. During the period GoGold produced 138.7 K Oz Ag, 2,436 Oa Au, 148 tonnes Cu, 125 tonnes Zn (or 400.2 K Oz AgEq) at cash cost $18.54 per Oz AgEq and AISC of $24.59 per Oz AgEq. The company had US$76.4 M in cash by the end of the quarter.
  • Equinox Gold Corp. announced its second quarter 2024 summary financial and operating results, without specifying figures by operation. The company produced 122,221 Oz Au during the period. For 2024 guidance calls for 665 – 750 K Oz Au, at cash cost $1,305 – $1,405 per Oz Au, and an AISC of $1,635 to $1,735 per Oz Au. At Los Filos in Guerrero, 2024 guidance is 155 -175 K Oz Au, at cash cost $1,785 – $1,855 per Oz Au and AISC of $2,090 – $2,190 per OZ Au. “The Los Filos team is in a dialogue process with the three communities where the mine is located, with the goal of reaching new land access agreements with each of them in a collaborative and transparent way. These new agreements are necessary to help ensure the long-term economic and investment viability of the mine, including the addition of a new CIL processing plant. If the Company is unable to satisfactorily complete these agreements, the Company will re-evaluate the current operation and may elect to cease operations”.
  • United States Antimony Corp. reported its second quarter 2024 financial and operational results. During the quarter the company completely shut down its operational activities in Mexico. “The historical cash drain of these operations on the Company ceased with this decision”. At the end of the period US Antimony had $12.4 M in cash (Los Juarez, Queretaro).
  • Sierra Metals Inc. reported consolidated financial results to the end of June 2024. During the quarter the sale of the Cusi mine in Chihuahua was completed, for $2.5 M in cash and a 2% NSR. On the period cash cost at Bolivar, in Chihuahua, was $2.76 per Lb CuEq, and AISC $3.53 per Lb CuEq. The company will continue the construction of the new tailings dam at Bolivar, which will allow the increase of production to 7,500 tpd. Guidance at Bolivar in 2024 is 23.9 M to 27.6 M Lb Cu, 650 K to 750 K Oz Ag, 8,000 to 9,200 Oz Au. Sierra Metals had cash and cash equivalents of $22.5 M at the end of June.

ON FINANCING

  • Heliostar Metals Ltd. closed the final tranche of its non-brokered private placement for gross proceeds of $500 K and a total aggregate of gross proceeds of $4.98 M (Ana Paula, Guerrero).

ON RESOURCES AND DEVELOPMENT

  • No Relevant News.

ON DEALS AND CORPORATE ISSUES

  • Golden Minerals Co. announced the retirement of Julie Wiedman, senior vice president and chief financial officer, and the appointment of Joe Dwyer as chief financial officer (CFO) (Yoquivo, Chihuahua).
  • Aura Minerals Inc. announced organizational changes, including some that affect its operations in Mexico. Enrique Rangel, current director of operations at the Aranzazu mine in Zacatecas, takes on the role of director of technical services in corporate, serving all units. Wilton Muricy, current director of operations at Minosa, takes on the role of director of operations at Aranzazu. Francisco do Carmo, current technical services manager at Aranzazu, assumes the role of director of operations at Minosa.
  • GR Silver Mining Ltd. announced the appointment to its board of directors of Mr. Brent McFarlane and Ms. Jessica van den Akker (Plomosas, Sinaloa).
  • Tarachi Gold Corp. signed a non-binding agreement letter of intent (LOI) to acquire all of the outstanding shares of Prospector Portal Inc. in a transaction that would transform Tarachi into an artificial intelligence-focused mining services company. “The LOI contemplates a post-Transaction ownership of Tarachi (“New Tarachi”) that would be approximately 85% held by current Prospector shareholders and 15% held by current Tarachi shareholder” (Tarachi, Sonora).
  • Xali Gold Corp. was advised by the British Columbia Securities Commission of a cease trade order as a result of Xali Gold’s delay in “filing its audited annual financial statements, accompanying management discussion and analysis, and CEO and CFO certifications for the financial year ended March 31, 2024” (El Oro, Estado de Mexico).
  • United States Antimony Corp. announced the appointment of Fred L. “Pete” Bunger as technical advisory director to the board (Juarez, Queretaro).
  • Reyna Silver Corp. entered into an agreement with Reyna Gold Corp. on which Reyna Silver is to acquire all of the issued and outstanding common shares of Reyna Gold (Guigui, Chihuahua; La Gloria, Sonora).
  • Sonoran Desert Copper Corp. amended the option to purchase the Cuatro-Hermanos project in Sonora. Under the revised option a large claim was terminated, with option payments reduced by $200 K and mining concession taxes by $238.6 K in 2024 and $603.6 K in 2025. The property holds NI-43-101 indicated and inferred resources for 643 M tonnes @ 0.19% Cu, 0.02% Mo (Cuatro Hermanos, Sonora).
  • Galore Resources Inc. “announces a status report with regards to the Company’s news release dated July 31, 2024 disclosing the Company’s application for a Management Cease Trade Order (“MCTO”), which was issued by the BC Securities Commission on July 30, 2023” No material change has occurred in the information contained in the default of a financial statement filing requirement. Galore expects to file its yearly financial statements, management discussion and analysis on September 27, 2024 (Dos Santos, Zacatecas).

ON SOCIAL RESPONSIBILITY

  • No Relevant News.

On the image below: Strong chlorite-epidote alteration in intrusive rock in a Sonoran Desert project, HQ core. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the Second Week of July 2024

/ Gambusino Prospector / Leave a comment

By Jorge Cirett                                             

During the 28th week of the year (July 8th to July 14th, 2024), companies working in Mexico posted at least 25 press releases. One company informed on exploration advances on its property and nine companies provided operational results for Q2 2024. One company increased the size of a previous offering, one more was notified of its lack of compliance by the NYSE and one more established an at the market equity distribution program. Four companies released drilling results from their advanced properties, and one more completed a drilling program. Three companies announced management appointments, two the authorization for their merger and one provided information on payments to governments. ON MEXICO ISSUES, Mexico fell spectacularly on the Fraser’s ranking of mining competitiveness. Camimex pointed that exploration by the SGM just won’t work. Arcelor Mittal’s workers continue their illegal strike. ON EXPLORATION, In Sinaloa, Chesapeake Gold released drilling results on Lucy. ON MINING, Fortuna Mining, Endeavour Silver, Aura Minerals, Torex Gold, Gatos Silver, SilverCrest Metals, Orla Mining, GoGold Resources and Sierra Metals reported production results for Q2 2024. ON FINANCING, Golden Minerals announced it’s been notified by the NYSE American of its lack of compliance on three listing standards. Southern Silver Exploration increased its private placement to C$4.5 M. Kootenay Silver established an equity distribution program. ON RESOURCES AND DEVELOPMENT, Atacama Copper reported drilling results from Cristina. Silver Tiger Metals released results from PFS drilling at El Tigre. Vizsla Silver reported results from holes on the Copala resource area at its Panuco project. GoGold Resources updated on the FS for Los Ricos South. Xali Gold announced the completion of a drill program at El Oro Tailings. ON DEALS AND CORPORATE ISSUES, Bear Creek Mining, Luca Mining and Barksdale Resources announced appointments to the board. Argonaut Gold and Alamos Gold received clearance from authorities to complete their proposed arrangement. Fresnillo plc paid US$297.5 M dollars to Mexico during 2023 in taxes, royalties and concessions fees. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • Mexico fell 37 positions on the Fraser Institute index of mining competitiveness from 2022 to 2023, reflecting the difficulty to do business imposed in the new Mining Law.
  • Camimex (Cámara Minera de México) indicated that mining exploration by the government as stated by the new mining law is just not viable. According to the new mining law, the only player able to do exploration before an auction of mining concessions is the SGM (Servicio Geológico Mexicano), and that in 2022 the SGM had a budget of just US$2.4 million dollars, compared with the annual average in the last 12 years of US$633 million dollars invested by private mining companies.
  • Workers of Arcelor Mittal rejected a proposal by the company to end the more than a month and a half old illegal strike. The proposed agreement included more than US2,000 dollars per worker and 75% of the salaries not received during the strike, as well as an audit on the profits of the company for 2022 and 2023, to assess the correct application of the profit-sharing scheme in the law.  

ON EXPLORATION

  • Chesapeake Gold Corp. released results from the phase 2 drill program at Lucy, in Sinaloa. In total 939 m were drilled in 12 holes along the known mineralized corridor, 101 additional surface soil and rock samples were collected along the projection of the trend and 63 line-km of ground magnetics covering the entire property completed. Highlighted core length intervals comprise 24 m @ 1.43 gpt Au (including 9 m @ 2.29 gpt Au); 6 m @ 1.95 gpt Au; 6 m @ 5.21 gpt Au; 6 m @ 1.90 gpt Au; 20.5 m @ 1.75 gpt Au (including 12 m @ 2.82 gpt Au. The gold mineralized zone has been extended from 500 to 700 m of length, and the corridor remains open on strike and at depth. “… this expanded corridor continues to display retrograde quartz-calcite, iron oxides, sulphide veinlets and stockwork hosted within garnet and pyroxene skarn and hornfels with zones altered to actinolite and other silicates.”

ON MINING

  • Fortuna Mining Corp. reported production results for the second quarter of 2024, including figures from its Mexican operations. At San Jose, in Oaxaca, 176.2 K tonnes were milled at a rate of 1,980 tpd, grading 140 gpt Ag, 1.09 gpt Au, recovering 85.6% Ag, 85.5% Au, to produce 684.2 K Oz Ag, 5,269 Oz Au. “Management is currently evaluating its options of maintaining operations at the mine or putting the mine on care and maintenance, as Mineral Reserves are scheduled to be exhausted by year end.”
  • Endeavour Silver Corp. reported second quarter 2024 production of 1.31 M Oz Ag, 10,549 Oz Au (or 2.2 M Oz AgEq).  At Guanaceví in Durango, 112.9 K tonnes were processed at a rate of 1,241 tpd, grading 364 gpt Ag, 1.29 gpt Au, recovering 90.4% Ag, 90.4% Au, to produce 1.19 M Oz Ag, 4,243 Oz Au. At Bolañitos in Guanajuato, 106.1 K tonnes were processed at a rate of 1,166 tpd, grading 41 gpt Ag, 2.06 gpt Au, recovering 83.4% Ag, 89.6% Au, to recover 116.9 K Oz Ag, 6,306 Oz Au. “Local third-party feed continued to supplement Guanaceví mine production, totaling 15% of quarterly throughput. With current prices, management expects local third-party feed to remain above 10% of throughput going forward.”
  • Aura Minerals Inc. announced preliminary production results for Q2 2024, including figures from its Mexican operations. At Aranzazu, in Zacatecas, production was 6,175 Oz Au, 120.4 K Oz Ag, 8.93 M Lb Cu (or 24,692 Oz AuEq).
  • Torex Gold Resources Inc. reported Q2 2024 production at its Limón-Guajes mine in Guerrero. A total of 17.8 K tpd of ore were mined from open pits, 77.4 K tpd of waste were moved at a strip ratio of 4.3 and 2,145 tpd were mined from underground. Total plant throughput was 13,214 tpd, averaging 3.34 gpt Au, with a recovery of 90.5% Au, to produce 113,822 Oz Au in the period. “… the level of waste mined is expected to decline further through the balance of the year as the pits reach the end of their mine life mid-2025….”
  • Gatos Silver Inc. announced production results for the second quarter 2024. During the period 294.9 K tonnes were milled at a rate of 3,240 tpd, grading 0.29 gpt Au, 273 gpt Ag, 2.06% Pb, 4.55% Zn, recovering 48.8% Au, 88.9% Ag, 89.5% Pb, 64.6% Zn to produce 1,360 Oz Au, 2.30 M Oz Ag, 12.0 M Lb Pb, 19.1 M Lb Zn.
  • SilverCrest Metals Inc. provided interim operational results for the second quarter of 2024. During the period 100 K tonnes were mined, 110.6 K tonnes were milled at a rate of 1,216 tpd, averaging 4.36 gpt Au, 418 gpt Ag (or 765 gpt AgEq), recovering 98.6% Au, 98.3% Ag, to produce 15,303 Oz Au, 1.46 M Oz Ag (or 2.68 M Oz AgEq).
  • Orla Mining Ltd. released an interim operational update for the second quarter 2024. At the Camino Rojo Oxide mine 1.9 M tonnes were mined, 2.05 M tonnes of waste moved with a strip ratio of 1.08 and 1.93 M tonnes were stacked averaging 0.87 gpt Au to produce 33,206 Oz Au. At the end of the period Orla had cash of US$154.3 M and total debt of US$78.4 M, resulting in a net cash position of US$75.9 M.
  • GoGold Resources Inc. reported production for the quarter. At the Parral Tailing project, 2,436 Oz Au, 138.7 K Oz Ag, 148 tonnes Cu, 125 tonnes Zn were produced during the period ending June 30, 2024.
  • Sierra Metals Inc. reported second quarter 2024 production results. At Bolivar, in Chihuahua, 378.9 K tonnes were processed at a rate of 4,273 tpd, grading 0.38 gpt Au, 19.5 gpt Ag, 0.83% Cu, recovering 65.4% Au, 80.6% Ag, 89.8% Cu, to produce 3,005 Oz Au, 190 K Oz Ag, 6.15 M Lb Cu.

ON FINANCING

  • Golden Minerals Co. announced that the company has been notified by the NYSE American LLC that it was not in compliance with three of the continued listing standards. “The notification from the NYSE American has no immediate effect on the Company’s common stock or its business operations. The Company’s common stock will continue to be listed on the NYSE American under the symbol “AUMN” while it regains compliance with Sections 1003(a)(i), 1003(a)(ii) and 1003(a)(iii) of the Company Guide, subject to the Company’s compliance with other continued listing requirements” (Yoquivo, Chihuahua).
  • Southern Silver Exploration Corp. announced the increase of the previously announced $3.3 M private placement to $4.5 M (Cerro Las Minitas, Durango).
  • Kootenay Silver Inc. established an “at the market” equity distribution program, which will allow Kootenay to issue and sell to the public from time to time, at its discretion, common shares in the capital of Kootenay on the amount of up to C$5 M (Columba, Chihuahua).

ON RESOURCES AND DEVELOPMENT

  • Atacama Copper Corp. reported results from five holes of a 10,000 m drilling program at Cristina, in Chihuahua. Fifteen holes totalling 4,467 m of drilling of a 40-to-50-hole program have been reported. Highlighted true width intercepts comprise 20.50 m @ 1.56 gpt Au, 25 gpt Ag, 0.17% Cu, 0.3% Pb, 0.3% Zn (including 1.20 m @ 22.30 gpt Au, 184 gpt Ag, 1.42% Cu, 0.8% Pb, 0.9% Zn); 14.00 m @ 0.96 gpt Au, 39 gpt Ag, 0.13% Cu, 0.4% Pb, 0.7% Zn (including 2.90 m @ 2.78 gpt Au, 75 gpt Ag, 0.98% Cu, 0.7% Pb, 0.3% Zn); 20.00 m @ 0.43 gpt Au, 20 gpt Ag, 0.2% Pb; 0.6% Zn; 9.00 m @ 0.70 gpt Au, 33 gpt Ag, 0.15% Cu, 0.7% Pb, 2.1% Zn; 5.80 m @ 0.43 gpt Au, 12 gpt Ag, 0.1% Pb, 0.3% Zn. The goal of the program is to increase the size and the grade of the resource and demonstrate the underground potential at Cristina.
  • Silver Tiger Metals Inc. released results from the pre-feasibility study drilling program on El Tigre project in Sonora. Highlighted core length intervals comprise 18.20 m @ 0.53 gpt Au, 7 gpt Ag; 5.80 m @ 0.43 gpt Au, 328 gpt Ag (including 1.80 m @ 1.10 gpt Au, 1,041 gpt Ag); 56.80 m @ 0.62 gpt Au, 55 gpt Ag; 11.00 m @ 0.16 gpt Au, 128 gpt Ag; 72.00 m @ 0.62 gpt Au, 15 gpt Ag; 59.00 m @ 0.62 gpt Au, 20 gpt Ag; 11.00 m @ 1.18 gpt Au, 87 gpt Ag; 45.00 m @ 0.43 gpt Au, 11 gpt Ag. Silver Tiger aims to release a new mineral resource estimate by September 2024. This drilling program has extended mineralization “by 10 to 15%, to the footwall and hanging wall zones, as well as the higher-grade ‘Keel’ at PEA pit bottom associated with the El Tigre and SK Veins”, and converted a significant portion of inferred resources to the indicated category.
  • Vizsla Silver Corp. reported results from six holes targeting the Copala resource area at its Panuco project in Sinaloa. “The reported drilling, designed to infill near-surface Indicated Mineral Resources, continues to confirm high-grade continuity throughout Copala including new high-grade intercepts on the Copala 3 hanging-wall vein splay.” Highlighted true width intervals comprise 7.80 m @ 4.40 gpt Au, 788 gpt Ag (including 0.86 m @ 25.30 gpt Au, 5,010 gpt Ag); 5.25 m @ 6.58 gpt Au, 547 gpt Ag; 3.50 m @ 7.83 gpt Au, 1,617 gpt Ag; 2.68 m @ 7.47 gpt Au, 1,831 gpt Ag; 7.00 m @ 9.51 gpt Au, 1,898 gpt Ag (including 1.29 m @ 18.95 gpt Au, 3,430 gpt Ag).
  • GoGold Resources Inc. is advancing the definitive feasibility study at Los Ricos South project in Jalisco. The study to be released in September focus “… towards a larger underground mine with a much smaller open pit. We have applied for an underground permit as in our view this will be more likely to be obtained on a timely basis. We see the project having more than 10 years of underground mine life, followed by a smaller open pit than originally planned in our preliminary economic assessment. The need for an open pit permit at Los Ricos South has been effectively pushed into the future more than a decade from now.”
  • Xali Gold Corp. announced that the drilling program for metallurgical test work on the T Tailings project at El Oro, in Estado de Mexico, has been completed. The program was expanded from the 20 holes planned to 34 holes, averaging 20 m in depth. In a technical report from 2014, the tailings have an inferred resource of 1.27 M tonnes averaging 2.94 gpt Au, 75 gpt Ag, containing 119,900 Oz Au, 3.06 M Oz Ag.

ON DEALS AND CORPORATE ISSUES

  • Bear Creek Mining Corp. announced the appointment of Mr. Donald Mc Iver as Vice President Exploration and Geology. The company drew US$1.12 M from the Sandstorm Gold Ltd. Promissory Note. “As of the date of this news release, an aggregate of US$1,875,000 has been drawn down under the Additional Credit for a total principal amount of US$20,892,612.35 outstanding under the Sandstorm Promissory Note. A remaining amount of US$750,000 may be drawn down under the Additional Credit in monthly installments of up to US$375,000 until August 2024” (Mercedes, Sonora).
  • Luca Mining Corp. announced the appointment of Mr. Dan Barnholden as Chief Executive Officer, effective July 15, 2024. “Ramon Perez, who has served as interim CEO for the past 4 months, will return to his role as President and will work closely with Dan to optimize operations at Campo Morado and achieve commercial production at Tahuehueto.” (Campo Morado, Guerrero).
  • Argonaut Gold Inc. received the clearance decision from COFECE (Comisión Federal de Competencia Económica) and the final order of the Ontario Superior Court of Justice on the pending arrangement transaction between Argonaut and Alamos Gold Inc.  Under the arrangement Alamos will acquire all of the issued and outstanding shares of Argonaut (La Colorada, Sonora).
  • Barksdale Resources Corp. announced the appointment of Mr. Alan Roberts as VicePresident Exploration (San Javier, Sonora).
  • Fresnillo plc. provided an overview of the payments to governments made by Fresnillo plc in 2023. In Mexico the company paid US$255.6 M in taxes, US$0.62 M in royalties and US$41.3 M in licenses and concessions fees (Fresnillo, Saucito and Juanicipio, Zacatecas).

ON SOCIAL RESPONSIBILITY

  • Aura Minerals Inc. announced the 4th annual sustainability report with its achievements in advancing safety, responsibility, sustainability and innovation.

On the image below: Oxidized shear zone on intrusive rocks in a Sonoran Desert project, HQ core. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the Second Week of June 2024

/ Gambusino Prospector / Leave a comment

By Jorge Cirett                                             

During the 24th week of the year (June10th to June 16th, 2024), companies working in Mexico posted at least 19 press releases. One company is mobilizing its drilling crew on its property and one other elaborated on its 2024 production guidance for two mines. Four companies announced the opening/closing of financing rounds for C$20.8 M. One company released a PEA on its advanced property, another a multi-year exploration strategy, another one released drilling results from its advanced property and one more released drilling results from its mining areas. Two companies dropped their legal challenges with the Mexican authorities to submit their claims to international arbitration. A company reminded its shareholders to pay attention to the spin out of the royalty company. A company informed on the agreement amendment to repurchase a royalty and the modification of a payment clause on an option purchase agreement. ON MEXICO ISSUES the local stock exchange and the Mx Peso-US Dollar exchange rate took a moderate dip during the week as the current president and incumbent party members commented on the likelihood to pass constitutional reforms aimed to centralize power after the landslide victory obtained in the general elections on June 2, 2024.  The main driver of the run is the intention to reform the Supreme Court with the election of ministers by a popular poll (similar to the current system in Bolivia), which is likely to be capitalized by the majority incumbent party Morena. Mining and exploration companies now have to raise to the reality that they better be well prepared for six more years of a government that does not like businesses in general and mining in particular. ON EXPLORATION, In Sinaloa, Prismo Metals is to mobilize its drilling crew to Palos Verdes. ON MINING, Luca Mining announced its 2024 production guidance for Campo Morado in Guerrero and Tahuehueto in Durango. ON FINANCING, Fortuna Silver closed the convertible senior notes previously announced for US$175 M (really, really unlikely to be invested in Mexico). Barksdale Resources, Prismo Metals, Impact Silver and Heliostar Metals raised a combined C$20.8 M. Quetzal Copper received a cease trade order in BC. ON RESOURCES AND DEVELOPMENT, Southern Silver Exploration released results from a PEA on Cerro Las Minitas, in Durango. Torex Gold presented its multi-year exploration strategy for the Morelos property in Guerrero. Vizsla Silver reported infill drilling results from Panuco, in Sinaloa. First Majestic Silver announced drilling results from San Dimas, in Sinaloa. ON DEALS AND CORPORATE ISSUES, Almadex Minerals and Almaden Minerals withdrew their legal challenges with the Mexican authorities as they took the decision to submit their claims to international arbitration. Vizsla Silver reminded its shareholders on the spinout of Vizsla Royalties. Capitan Silver amended the agreement to repurchase a royalty and also the option agreement on a mining concession at its Cruz de Plata project in Durango. SilverCrest Metals presented results from its AGM. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • The local stock exchange and the Mx Peso-US Dollar exchange rate took a moderate dip during the week as the current president and incumbent party members commented on the likelihood to pass constitutional reforms aimed to centralize power after the landslide victory obtained in the general elections on June 2, 2024.  The main driver of the run is the intention to reform the Supreme Court with the election of ministers by a popular poll (similar to the current system in Bolivia), which is likely to be capitalized by the majority incumbent party Morena. Mining and exploration companies now have to raise to the reality that they better be well prepared for six more years of a government that does not like businesses in general and mining in particular

ON EXPLORATION

  • Prismo Metals Inc. intends to mobilize its drilling crew to the Palos Verdes project in Sinaloa. Approximately 3,600 m in ten holes are to be completed in two phases after the closing of the ongoing financing. “These holes will be drilled from Vizsla Silver Corp. (TSXV: VZLA) concessions adjacent to the Palos Verdes concession and will target the Palos Verdes vein at depth.”

ON MINING

  • Luca Mining Corp. announced its 2024 guidance and outlook for the Campo Morado and Tahuehueto mines. At Campo Morado in Guerrero, the company aims to produce 43 K to 50 K Oz AuEq at cash cost $1,175 to $1,294 per Oz AuEq and an AISC of $1,235 to $1,420 per Oz AuEq to obtain $55 M to $65 M in revenue. At Tahuehueto, in Durango, Luca Mining expects to produce 17 K to 20 K Oz AuEq at cash cost $1,295 to $1,420 per Oz AuEq and an AISC of $1,510 to $1,700 per Oz AuEq, to obtain $35 M to $40 M in revenue. At Tahuehueto the company is installing a third filter press that will allow to increase production from 450 tpd to 800 tpd in a short timeframe. At Campo Morado production is ramping back up to 2,000 tpd (from 1,390 tpd in Q1 2024), coupled with the production of three concentrates of copper, zinc and lead, instead of the two currently being produced.

ON FINANCING

  • Fortuna Silver Mines Inc. closed the previously announced offering of 3.75% convertible senior notes due 2029 in an aggregate principal of US$175.5 M, which includes exercise of the full amount of the option to purchase an additional US$22.5 M aggregate principal amount of notes “The initial conversion rate for the Notes is 151.7220 common shares of Fortuna (“Shares”) per US$1,000 principal amount of Notes, equivalent to an initial conversion price of approximately US$6.59 per Share” (San José, Oaxaca).
  • Barksdale Resources Corp. increased the previously announced non-brokered private placement financing for gross proceeds of C$5.62 M. The proceeds are to be used in the exploration activities of Barksdale’s Arizona properties (San Javier, Sonora).
  • Quetzal Copper Corp. has been issued a cease trade order from the British Columbia Securities Commission on June 4, 2024 for failure to file interim financial reports, interim management´s discussion and analysis and certification of interim filings for Q1 2024 (Cristinas, 2024).
  • Prismo Metals Inc. announced that it has received commitments for gross proceeds of C$1.1 M (Palos Verdes, Sinaloa).
  • Capitan Silver Corp. granted 3.94 M options to officers, directors and consultants (Cruz de Plata, Durango).
  • IMPACT Silver Corp. closed the second tranche of the non-brokered private placement financing previously announced for combined gross proceeds of C$9.09 M (Plomosas, Chihuahua).
  • Heliostar Metals Ltd. announced a non-brokered private placement for gross proceeds of up to C$5 M (Ana Paula, Guerrero).

ON RESOURCES AND DEVELOPMENT

  • Southern Silver Exploration Corp. released results from its preliminary economic assessment (PEA) on its Cerro Las Minitas project in Durango. Key features include an after-tax NPV5% of US$501 M and IRR of 21.2% with a 48-month payback, Initial CapEx of $388 M, a large-scale underground operation with a 17-year mine life with LOM feed totalling 243 M Oz AgEq to produce 194 M Oz Ag at an AISC of $13.23 per Oz AgEq. Gross revenues totalling US$4.47 B with Ag and Au representing 45% of revenue and zinc 35%. The project has 13.3 M tonnes @ 102 gpt Ag, 0.07 gpt Au, 0.17% Cu, 1.3% Pb, 3.1% Zn containing 43.2 M Oz Ag, 32 K Oz Au, 49 M Lb Cu, 374 M Lb Pb, 921 M Lb Zn as indicated resources and 23.4 M tonnes @ 111 gpt Ag, 0.14 gpt Au, 0.21% Cu, 1.1% Pb, 2.1% Zn, containing 83.4 M Oz Ag, 104 K Oz Au, 111 M Lb Cu, 582 M Lb Pb, 1,106 M Lb Zn.
  • Torex Gold Resources Inc. presented the multi-year exploration strategy for its Morelos property in Guerrero. The exploration and drilling strategy has the objective to maintain more than 450 K Oz Au annual production and is to focus in three areas: 1) Extending the mine life of ELG Underground and Media Luna 2) Expanding resources within the Media Luna Cluster 3) Advancing targets through the growth pipeline. The $31 M exploration budget for 2024 includes $3 M for regional exploration, including the El Naranjo and Atzcala targets, and plans to explore north of the Balsas River.
  • Vizsla Silver Corp. released results from 12 diamond drill holes targeting the Copala structure at its Panuco project in Sinaloa. Some of the true width intercepts of the infill program comprise 5.00 m @ 22.95 gpt Au, 1,378 gpt Ag (including 2.75 m @ 39.10 gpt Au, 2,225 gpt Ag); 13.00 m @ 8.19 gpt Au, 1,017 gpt Ag (including 1.40 m @ 35.11 gpt Au, 4,124 gpt Ag); 6.00 m @ 10.31 gpt Au, 1,882 gpt Ag; 8.70 m @ 5.18 gpt Au, 1,096 gpt Ag; 12.30 m @ 1.57 gpt Au, 150 gpt Ag. “Resource drilling at Copala has now traced mineralization along ~1,770 metres of strike length and ~400 metres down dip.”
  • First Majestic Silver Corp. announced drilling results from its 2024 exploration program at San Dimas, in Durango. The drill program focus was to test new Au-Ag targets, add mineral resources and convert mineral resources to mineral reserves. Highlighted true length results comprise 2.15 m @ 20.41 gpt Au, 1,702 gpt Ag; 6.08 m @ 1.99 gpt Au, 440 gpt Ag; 6.72 m @ 7.36 gpt Au, 1,129 gpt Ag; 1.28 m @ 11.53 gpt Au, 1,158 gpt Ag; 7.88 m @ 10.87 gpt Au, 1,034 gpt Ag; 1.01 m @ 12.34 gpt Au, 196 gpt Ag; 1.76 m @ 39.28 gpt Au, 1,905 gpt Ag; 2.18 m @ 4.86 gpt Au, 511 gpt Ag; 1.34 m @ 9.44 gpt Au, 1,069 gpt Ag; 0.94 m @ 13.24 gpt Au, 1,501 gpt Ag; 2.05 m @ 3.42 gpt Au, 361 gpt Ag.

ON DEALS AND CORPORATE ISSUES

  • Almadex Minerals Ltd. has taken the decision to submit its claims to arbitration against Mexico under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, after a consultation meeting with Mexican officials on May 30, 2024 did not result in an amicable resolution of the dispute with Mexico. Almadex is pursuing this arbitration together with Almaden Minerals Ltd., and based on a preliminary estimate will be seeking damages of no less than US$200 million. Almadex would be entitled to damages relating to its 2.0% NSR royalty on the Ixtaca project in Puebla.
  • Almaden Minerals Ltd. has taken the decision to submit its claims to arbitration against Mexico under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, after a consultation meeting with Mexican officials on May 30, 2024 did not result in an amicable resolution of the dispute with Mexico. Almaden has withdrawn its legal challenge in the Mexican Federal Administrative Court and other legal proceedings in respect of the company’s mining concessions, as required for submitting a claim under the CPTPP. The ruling on the arbitration under the CPTPP will be adjudicated pursuant to the arbitration rules of the International Centre for Settlement of Investment Disputes (ICSID). Almaden is pursuing this arbitration together with Almadex Minerals Ltd., and based on a preliminary estimate will be seeking damages of no less than US$200 million, in the aggregate (Ixtaca, Puebla).
  • Vizsla Silver Corp. reminds its shareholders that if the spinout of Vizsla Royalties Corp. is approved at the special meeting being held on June 17, 2024, the company will seek a final order from the Supreme Court of British Columbia to approve the arrangement and closing will occur on or about June 24, 2024. “The owners of common shares of Vizsla Silver … are entitled to receive one-third of a common share of Vizsla Royalties Corp. …. and one-third of a common share purchase warrant of Vizsla Royalties Corp.” for each Vizsla Silver Share held on the record date (Panuco, Sinaloa).
  • Capitan Silver Corp. amended its agreement to repurchase a royalty on its Cruz de Plata project in Durango. The net smelter royalty (NSR) entitled Exploraciones del Altiplano an NSR of up to 2%. “The amendments have restructured the final payments to Altiplano which totaled USD $1.0 million into three smaller payments over the course of a year. Upon signing of the amendment a cash payment of USD $87,500 was made, with remaining payments to consist of 50% cash and 50% shares as follows: USD $200,000 in October 2024 and USD $300,000 in April 2025.” Amended was also the option agreement to purchase the “El Casco U” property from Fresnillo plc, modifying the November 2023 US$150 K payment to a US$156.3 K payment on May 2024, which has since been paid.
  • SilverCrest Metals Inc. announced results from its annual general meeting (AGM) held on June 12, 2024. Eight directors were re-elected by a handsome majority on the meeting where “A total of 88,115,662 votes were represented at the AGM amounting to 59.84% of the issued common shares…”  

ON SOCIAL RESPONSIBILITY

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On the image below: Saw scratched molybdenite speck image on a 40 X hand lens from a project in the Sonoran Desert. Picture by Jorge Cirett