Estado de Mexico

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

  • No Relevant News.

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

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

/ Gambusino Prospector / Leave a comment

By Jorge Cirett                                             

During the 19th week of the year (May 6th to May 12th,2024), companies working in Mexico posted at least 31 press releases. One company released exploration results in its property, while eleven companies released production results for Q1 2024. Two companies announced financing rounds for C$11.77 M, two more granted stock options, one is arranging a US$20 M loan, while another one obtained a US$5 M loan from another company. A company informed on the discovery of a new vein near mining workings, another one updated the mineral resource estimate at its property, two presented drilling results and one more a positive PEA on a copper play. One company issued shares whilst acquiring mining concessions, another one is assessing its ownership on its only Mexican asset, while one other is selling all its Mexican assets. One company informed on board changes. ON MEXICO ISSUES, Mexico was the venue for the meeting of mining industry unions from Argentina, Peru, Canada and Mexico. Golden Minerals announced the divestment of all its Mexican assets, to focus in Argentina. ON EXPLORATION, In Chihuahua, Kingsmen Resources released results from surface sampling at Las Cristinas. ON MINING, Gatos Silver, Aura Minerals, Fortuna Silver, First Majestic, GoGold Resources, Starcore International, Avino Silver & Gold, Pan American Silver, Torex Gold, Equinox Gold and Endeavour Silver presented financial/operational results for Q1 2024. ON FINANCING, Guanajuato Silver Company raised C$11.35 M, Tocvan Ventures raised C$420.6 K. GR Silver Mining granted shares to employees, officers, directors and consultants, and Osisko Development granted 283 K to independent directors. Heliostar Metals is arranging a US$20 M loan for test mining. Silver Storm received a US$5 M loan for advancing La Parrilla project in Zacatecas. ON RESOURCES AND DEVELOPMENT, Impact Silver discovered a new vein at its Zacualpan project. Sierra Metals updated the mineral resource and reserve estimate for Bolivar, in Chihuahua. Silver Storm released drilling results from La Parrilla, Durango. Vizsla Silver released drilling results from La Luisa vein at its Panuco project in Sinaloa. Barksdale Resources announced positive results from a PEA on the San Javier project in Sonora. ON DEALS AND CORPORATE ISSUES, Vizsla Silver issued shares on the acquisition of the San Enrique project concessions. Osisko Development is assessing its ownership on the San Antonio project in Sonora. GoGold announced board changes. Golden Minerals is selling all its assets in Mexico to focus in Argentina. ON SOCIAL RESPONSIBILITY, Torex Gold and Equinox Gold informed on ESG matters.

ON MEXICO ISSUES

  • Mining unions from Argentina, Perú, Canada and Mexico reunited on the second Encuentro del Frente Internacional Minero, under which the unions bid to design strategies to support and defend the rights of mining industry workers.
  • Golden Minerals is the company of the week announcing its departure from Mexico for greener pastures in Argentina.

ON EXPLORATION

  • Kingsmen Resources Ltd. reported surface sampling results from Las Coloradas project in Chihuahua. Twenty-eight samples were collected on the north end of the 1.7 km long Soledad structure/vein system, over a 530 m interval. Highest results comprise 0.6 m @ 0.121 gpt Au, 362 gpt Ag, >1% Pb, 0.4% Zn; 0.5 m @ 0.266 gpt Au, 449 gpt Ag, >1% Pb, 0.7% Zn; 0.8 m @ 205 gpt Ag, >1% Pb, 0.2% Zn; 0.5 m @ 106 gpt Ag, 1% Pb, 0.3% Zn; 1.1 m @ 76 gpt Ag, 2.0% Pb, 0.3% Zn, and two grab samples running 0.12 gpt Au, 81 gpt Ag, 2.6% Pb, 2.0% Zn; 432 gpt Ag, 4.7% Pb, 3.8% Zn. “The better silver grades are localized in structural intersections and flexures in all rock types. The mineralization likely continues at depth below the water table which is at a depth of approximately 125 meters. Blind extensions to all the mineralized structures, as well as new structures, are likely at depth…. The sizes of the old workings suggest the mined mineralization may have been up to several meters in width”. The mineralized structures have not been explored by drilling.

ON MINING

  • Gatos Silver Inc. announced first quarter 2024 financial and operating results. The company owns 70% of the Cerro Los Gatos project in Chihuahua, where 292.1 K tonnes were milled during the period at a 3,210 tpd rate, with ore averaging 284 gpt Ag, 3.99% Zn, 1.77% Pb, 0.28 gpt Au, to produce 2.37 M Oz Ag, 15.8 M Lb Zn, 10.1 M Lb Pb, 1,390 Oz Au, at $11.70 co-product cash cost per Oz Ag, $6.09 By-product cash cost per Oz Ag, $14.36 Co-product AISC per Oz Ag and $10.08 By product per Oz Ag. Total revenue was $72.2 M, at an EBITDA of $35.1 M and cash flow from operations of $37.3 M. At the end of the period the company had a cash balance of $70.6 M.
  • Aura Minerals Inc. filed its unaudited consolidated financial statements for Q1 2024. At Aranzazu, in Zacatecas, the company produced 25,000 Oz AuEq at cash cost $926 per Oz AuEq and an AISC of $1,263 per Oz AuEq.
  • Fortuna Silver Mines Inc. reported its financial and operating results for the first quarter of 2024. The company had consolidated international production of 89,678 Oz Au, 1.07 M Oz Ag (112,543 Oz AuEq). At San Jose, in Oaxaca, during the period 246.7 K tonnes were milled at a rate of 2,182 tpd, grading 147 gpt Ag, 0.90 gpt Au, recovering 89% Ag, 87% Au, to produce 759.1 K Oz Ag, 4,533 Oz Au, at cash cost $21.98 per Oz AgEq and an AISC of $24.24 per Oz AgEq. “The operation is experiencing further cost pressures driven by the continued appreciation of the Mexican peso. The Company conducts regular assessments and trade-offs between maintaining operations and opting for a care and maintenance option”.
  • First Majestic Silver Corp. announced “the unaudited condensed interim consolidated financial results” for the first quarter 2024. During the period, at San Dimas, in Durango, 179 K tonnes were processed to produce 1.16 M Oz Ag, 13,543 Oz Au. At Santa Elena, in Sonora, 224.4 K tonnes were processed to produce 355.2 K Oz Ag, 21,713 Oz Au. At La Encantada, in Coahuila, 588.6 K tonnes were processed to produce 456.2 K Oz Ag, 33 Oz Au. Total production in Mexico amounted to 1.97 M Oz Ag, 35,289 Oz Au. At the endo of the period the company had $102.1 M in cash and cash equivalents, and $127.2 M of restricted cash.
  • GoGold Resources Inc. announced financial results for Q1 2024. The company generated net income of US$1.3 M and revenue of US$8.9 M on the sale of 374.1 K Oz AgEq produced at its Parral tailings project in Chihuahua. GoGold had US$80.8 M in cash by the end of the period.
  • Starcore International Mines Ltd. announced production results for the fourth fiscal quarter ended April 2024. During the period its San Martin mine in Queretaro milled 55.8 K tonnes grading 1.91 gpt Au, 19.6 gpt Ag, recovering 88.6% Au, 56.9% Ag, to produce 3,242 Oz AuEq. The company informs new orebodies have been found with a new geological model, and industrial tests have shown carbonaceous ore is able to be treated to recover precious metals economically.
  • Avino Silver & Gold Mines Ltd. announced its consolidated financial results for the first quarter of 2024. At Avino, in Durango, 169.6 K tonnes were milled to produce 250.6 K Oz Ag, 1,778 Oz Au, 1.35 M Lb Cu (or 629.3 K Oz AgEq), at cash cost $14.89 per Oz AgEq and an AISC of $20.23 per Oz AgEq, at cash cost $14.89 per Oz AgEq and an AISC of $20.23 per Oz AgEq, remaining on track for the production in 2024 of 2.5 M to 2.8 M Oz AgEq. At La Preciosa, near to the Avino mine, capital costs for 2024 are expected to be between US$3.0 to US$4.0 M, to include “surface works and equipment procurement intended for the first phase of mine development for the Gloria and Abundancia Veins”. The company had revenue of $12.4 M and gross profit of $2.3 M.
  • Pan American Silver Corp. reported unaudited results for Q1 2024, including some figures from its Mexican operations. At La Colorada, in Zacatecas, 1.11 M Oz Ag, 500 Oz Au were produced at cash cost $25.01 per Oz Ag and an AISC of $25.37 during the period, while at Dolores, in Chihuahua, 430 K Oz Ag, 17,900 Oz Au were produced at cash cost $1,412 per Oz Au, an AISC of $2,367 per Oz Au. At the end of the period the company had working capital of $693.5 M, inclusive of cash and cash investments of $331.4 M, and $750 M available on its credit facility. Total debt of $806.6 M.
  • Torex Gold Resources Inc. reported financial and operational results for the first quarter of 2024. The company produced from its El Limón-Guajes deposit in Guerrero 115,494 Oz Au, or 117,306 Oz AuEq at cash cost $943 per Oz AuEq and an AISC of $1,221 per Oz AuEq. “The quarter closed with net cash1 of $69.2 million, including $113.2 million in cash and $44.0 million of lease-related obligations, no borrowings on the credit facilities of $300.0 million as at March 31, 2024 and letters of credit outstanding of $7.9 million, providing $405.3 million in available liquidity1”.
  • Equinox Gold Corp.  announced its first quarter 2024 summary financial and operating results, without providing figures per project (Los Filos, Guerrero).
  • Endeavour Silver Corp. announced its financial and operating results for Q1 2024. During the period the company processed 115 K tonnes at Guancaeví, in Durango, to produce 1.33 M Oz Ag, or 1.66 M Oz AgEq at an-in sustaining cost of $21.96 per Oz. At Bolañitos, in Guanajuato, 106.8 K tonnes were processed to produce 118.6 K Oz Ag, or 605 K Oz AgEq at an AISC of $15.59 per Oz. Total production without specifying the source was 1.46 M Oz Ag, 10,133 Oz Au. Cash position of $34.9 M at the end of the period.

ON FINANCING

  • Guanajuato Silver Company Ltd. filed an amended and restated offering document in relation to its previously announced brokered, best efforts offering, for aggregate proceeds of up to C$10.87 M (El Cubo, Guanajuto).
  • GR Silver Mining Ltd. granted stock options, deferred share units and performance share units in accordance with the omnibus long-term incentive plan approved on September’s 2023 AGM. The company granted 1.58 M incentive stock options to certain employees, executive officers, directors and consultants, and also 1.8 M incentive stock options to certain directors and executive officers. 35,294 deferred shares were granted to each non-executive directors for directors’ fees. Also 1.8 M performance share units were granted to certain executive officers of the company Plomosas, Sinaloa).
  • Heliostar Metals Ltd. entered into a non-binding letter of intent on a senior secured debt facility for US$20 M, with an expected fixed 10% rate of interest with a syndicate of lenders led by a New York based Asset Manager. “The net proceeds of the Facility will be used to advance the underground decline and complete test mining to process a bulk sample from the Ana Paula deposit in Guerrero…. Funds from the sale of gold produced from the bulk sample are anticipated to repay the principal and interest of the loan and the floor price for a portion of the test mining ounces minimizes completion risk”. The company will also issue 17.24 M warrants to the lenders at $0.40 and $0.55 per share (Ana Paula, Guerrero).
  • Sierra Madre Gold and Silver Ltd. announced that First Majestic Silver Ltd. advanced the company a US$5 M non-revolving secured loan. The loan is for a 2-year term and bears 15% interest rate, compounded monthly. The company agreed to pledge all the shares of the subsidiary that owns La Guitarra project in favour of First Majestic.
  • Guanajuato Silver Company Ltd. announced the closing of its previously announced brokered, best-efforts offering for aggregate gross proceeds of C$11.35 M, under a combined Listed Issuer Financing Exemption (LIFE) and concurrent placement to accredited investors. Certain directors, officers and other insiders and their affiliates participated in the offering and acquired $503 K in shares (El Cubo, Guanajuato).
  • Osisko Development Corp. granted 283.2 K deferred share units to its independent directors (San Antonio, Sonora).
  • Tocvan Ventures Corp. closed a final tranche of its previously announced non-brokered private placement for gross proceeds of C$420.6 K, and total combined gross proceeds of $2.52 M. Since early April 1,825 m of reverse circulation drilling have been completed in 15 holes at its Pilar project in Sonora, sample results are pending.

ON RESOURCES AND DEVELOPMENT

  • Impact Silver Corp. announced a new silver vein discovery in its currently producing Guadalupe mine in the Royal Mines of Zacualpan district in Estado de México. The Kena Vein south is within 100-200 m of active mine workings. Core length results from the first four holes comprise 1.65 m @ 378 gpt Ag, 0.40 gpt Au, 0.3% Pb, 0.4% Zn; 0.75 m @ 1,400 gpt Ag, 0.39 gpt Au, 0.9% Pb, 2.1% Zn; 17.30 m @ 214 gpt Ag, 0.02 gpt Au, 0.2% Pb, 0.3% Zn (including 3.90 m @ 358 gpt Ag, 0.03 gpt Au, 0.2% Pb, 0.4% Zn); 0.78 m @ 463 gpt Ag, 0.09 gpt Au, 0.6% Pb, 1.2% Zn; 1.20 m @ 198 gpt Ag, 1.99 gpt Au, 3.3% Pb, 5.9% Zn; 0.40 m @ 1,450 gpt Ag, 0.65 gpt Au, 2.2% Pb, 3.0% Zn; 0.70 m @ 1,615 gpt Ag, 0.58 gpt Au, 1.8% Pb, 6.0% Zn. “The Kena Vein South has now been drill tested over a length of 150 metres from mine Level 140 and is open for extension to the southeast, updip and downdip. Drilling is continuing”.
  • Sierra Metals Inc. updated the mineral resource and reserve estimates for its Bolivar mine in Chihuahua. Measured and indicated resources comprise 18.4 M tonnes @ 0.76% Cu, 15.29 gpt Ag, 0.25 gpt Au, containing 306 M Lb Cu, 9 M Oz Ag, 150,000 Oz Au, whilst inferred resources amount to 12.11 M tonnes @ 0.72% Cu, 12.21 gpt Ag, 0.19 gpt Au, containing 193 M Lb Cu, 4.75 M Oz Ag, 70,000 Oz Au. Mineral resources are inclusive of mineral reserves, which amount to 5.6 M tonnes @ 0.77% Cu, 16.83 gpt Ag, 0.28 gpt Au, containing 94.7 M Lb Cu, 3 M Oz Ag, 50,000 Oz Au
  • Silver Storm Mining Ltd. Released further drill results from its La Parrilla mine complex in Durango. Highlighted core length intervals comprise 4.13 m @ 376 gpt Ag, 0.04 gpt Au, 1.3% Pb, 1.4% Zn (including 0.60 m @ 1,270 gpt Ag, 0.14 gpt Au, 5.0% Pb, 7.4% Zn); 7.50 m @ 284 gpt Ag, 0.04 gpt Au, 0.9% Pb, 0.4% Zn (including 1.12 m @ 390 gpt Ag, 0.06 gpt Au, 2.0% Pb, 0.6% Zn and 1.38 m @ 611 gpt Ag, 0.03 gpt Au, 2.6% Pb, 0.9% Zn); 2.36 m @ 619 gpt Ag, 0.19 gpt Au, 1.3% Pb, 1.5% Zn (including 0.57 m @ 1,555 gpt Ag, 0.24 gpt Au, 1.6% Pb, 2.0% Zn); 1.21 m @ 466 gpt Ag, 0.14 gpt Au, 1.6% Pb, 0.7% Zn. These results come from the C1940, San Rafael and La Estrella zones in the Quebradillas mine, and are not included in the last resource estimate of August 2023.
  • Vizsla Silver Corp. reported results from six new holes at the La Luisa vein, at its Panuco project in Sinaloa. Highlighted true width results comprise 1.90 m @ 0.47 gpt Au, 29 gpt Ag; 1.30 m @ 2.07 gpt Au, 682 gpt Ag, 0.2% Pb, 0.2% Zn; 1.00 m @ 0.69 gpt Au, 65 gpt Ag, 0.2% Pb; 0.75 m @ 2.78 gpt Au, 827 gpt Ag, 0.6% Pb, 1.8% Zn; 2.0 m @ 2.94 gpt Au, 102 gpt Ag, 0.2% Pb, 1.1% Zn; 0.56 m @ 7.96 gpt Au, 78 gpt Ag, 0.3% Pb, 1.5% Zn; 2.90 m @ 0.71 gpt Au, 185 gpt Ag, 1.4% Pb, 0.7% Zn; 1.22 m @ 0.71 gpt Au, 255 gpt Ag, 2.3% Pb, 1.2% Zn; 0.56 m @ 0.53 gpt Au, 234 gpt Ag, 0.7% Pb, 0.2% Zn; 2.11 m @ 0.93 gpt Au, 33 gpt Ag, 0.2% Pb, 1.8% Zn; 0.80 m @ 1.05 gpt Au, 77 gpt Ag, 0.1% Pb, 0.2% Zn; 2.70 m @ 0.42 gpt Au, 52 gpt Ag, 0.2% Pb, 0.6% Zn; 0.48 m @ 61.60 gpt Au, 3,310 gpt Ag, 0.8% Pb, 1.3% Zn; 1.10 m @ 7.79 gpt Au, 103 gpt Ag, 0.2% Pb, 0.8% Zn; 0.73 m @ 9.73 gpt Au, 115 gpt Ag, 0.2% Pb, 1.0% Zn. La Luisa vein has been mapped for 1,500 m on the surface, and defined by 57 holes for 1,670 m and 450 m downdip, averaging 2.56 m @ 3.09 gpt Au, 150 gpt Ag, 0.36% Pb, 1.35% Zn.
  • Barksdale Resources Corp. announced positive results of a preliminary economic assessment (PEA) completed on the San Javier oxide copper-gold project in Sonora. “The PEA envisions a modest capital cost project utilizing conventional openpit mining with a solvent-extraction and electrowinning (“SXEW”) plant to produce LME-grade copper cathodes on-site”. Highlights include a 13-year mine life producing 209 M Lb of cathode Cu with an on-site SXEW, open pit mining with a waste to ore ratio of 0.66 to 1, average LOM cash costs of $2.16 per Lb Cu, low initial cost of US$116.8 M an upside expansion on the Mesa Grande and Trinidad areas and the assessment of potential gold recovery and run of mine processing. Metallurgical testwork returned 85% recovery of soluble copper in the leach cap and oxide zones, 75% in the mixed oxide/sulfide and 60% recovery in the sulfide zone. The mineral resource estimate stands at 70.1 M tonnes @ 0.271% Cu containing 289.4 M Lb soluble Cu in the measured and indicated category, and 6 M tonnes @ 0.240% Cu, containing 19.9 M Lb of soluble Cu.

ON DEALS AND CORPORATE ISSUES

  • Vizsla Silver Corp. has now issued 448.1 K shares in relation to the acquisition of the 10,667 Ha San Enrique project claims in Sinaloa from Inca Azteca Gold S.A.P.I. de C.V. Minera Canam, S.A. de C.V. The claims are south and partially adjacent to Vizsla’s Panuco project, and covered 100% with LiDAR and partially covered with high-resolution aero-magnetic and radiometric surveys.
  • Osisko Development Corp. informed the San Antonio project in Sonora was placed in care and maintenance after completion of processing of the remaining stockpile inventory from the heap leach pad in Q3 2023. The company waits for the next steps the government takes after the June 2024 presidential elections with respect to the permitting process and the status of open pit mining in the country. Osisko is “exploring the potential for a financial or strategic partner in the asset or for a full or partial sale of the asset”.
  • GoGold Resources Inc. announced the retirement of George Wayne, FCPA, FCA from its board. The company has appointed Douglas Reid to its board (Parral Tailings, Chihuahua).
  • Golden Minerals Co. entered into a definitive agreement to sell the primary assets comprising its Velardeña properties in Durango. “The assets being sold include the Velardeña and Chicago mines, both of the Company’s oxide and sulfide processing plants and related equipment”. On April 29, 2024, the buyer paid a non-refundable $1 M in cash. On May 20, 2024, the buyer shall pay $2.0 M in cash and on July 1, 2024, the buyer shall pay $2.5 M in cash. In other matters, the company agreed to pay $250 K to Unifin Financiera S.A.B. de C.V. in exchange for UNIFIN’s withdrawal of an ongoing lawsuit. “The sale will enable us to divest of our production assets and related liabilities in Mexico and allow us to focus on exploration and development, principally of our Argentina assets. We also anticipate future net proceeds from the sale of tax credits related to the holding companies of the production assets.”

ON SOCIAL RESPONSIBILITY

  • Torex Gold Resources Inc. “exited the quarter with one lost-time ankle injury at the Media Luna Project and reached 14 million hours lost-time injury free at the El Limón-Guajes (“ELG”) Mine Complex”. The lost-time injury frequency for the Morelos Complex in Guerrero was 0.15 per million hours worked for employees and contractors on a rolling 12-month basis.
  • Equinox Gold Corp. published its 2023 Environmental Social and Governance (ESG) report.

On the image below: Long shadows on vein ridges on a project in the Sonoran Desert. Picture by Jorge Cirett.