Exploration

The Mining and Exploration News in Mexico: Highlights on the Fifth Week of August 2023

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By Jorge Cirett                                             

During the 35th week of the year (August 27th to September 3rd, 2023), 21 companies working in Mexico posted news releases. Five companies reported on quarterly or half year 2023 results. Five companies informed on the opening or closing of private placements, one on the payment of dividends and one more on the extension of a credit facility.  One company announced results of a PEA on its property and one other is working to process a tailings polymetallic resource. A company reported high-grade drilling results from its property and one other updated on exploration activities. One company informed on its intention to acquire a porphyry copper project in Sonora, while one other updated on projects in several countries and its plans for Mexico. One royalty company informed on the indirect acquisition of an NSR from a mine in Mexico. ON MEXICO ISSUES, Xótchil Gálvez, pointed that the Mining Fund should return to mining communities. ON EXPLORATION, no relevant news. ON MINING, Impact Silver, Bear Creek Mining and Minera Alamos reported financial results for Q2 2023, and Mundoro reported first half 2023 results. ON FINANCING, Aztec Minerals (C$911.6 K), Colibri Resource, Regency Silver (C$1.5 M), Sonoro Gold (C$259.2 K) and Commander Resources ($ 346 K) informed on the opening or closing of financing rounds. Orla Mining extended its credit facility to up to $200 M and four years. Alamos Gold declared a quarterly dividend. ON RESOURCES AND DEVELOPMENT, Sonoro Gold announced a positive PEA on Cerro Caliche, Sonora. Luca Mining informed on evaluation plans to reprocess tailings at Campo Morado, Guerrero. Bear Creek Mining provided underground drilling results from Mercedes, in Sonora. Discovery Silver submitted the environmental impact assessment (MIA) for Cordero, in Chihuahua. Mammoth Resources provided an update on exploration activities at Tenoriba, in Chihuahua. ON DEALS AND CORPORATE ISSUES, Southern Empire Resources entered into an agreement with Cuprum Mining, upon which Southern can acquire 100% interest in the Suaqui Verde porphyry copper project in Sonora. Excellon Resources provided an update on its projects in different countries, including Mexico. Gold Royalty completed the acquisition of a 1.0% NSR on portions of the Cozamin mine production in Zacatecas. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • Xóchitl Gálvez, opposition senator and likely to turn into a strong presidential candidate, points that the Mining Fund should return to mining communities. The fund was created for mining to contribute to the development of the communities where the work is realized, but was funneled into a broader basket to source pensions and scholarships with electoral aims by the current president.

ON EXPLORATION

  • No Relevant News.

ON MINING

  • Impact Silver Corp. announced financial results for the second quarter 2023, reporting revenue of $5.5 M. The average mill feed at Zacualpan, in Estado de Mexico, was 163 gpt Ag, where 35.7 K tonnes were processed to produce 155.7 K Oz Ag. During the quarter Impact closed the acquisition of the Plomosas mine in Chihuahua, where a major rehabilitation program was initiated. The company completed a $9.0 M non-brokered private placement, maintains a cash balance of $13.3 M and no long-term debt.
  • Orogen Royalties Inc. reported financial results for the second quarter of 2023, including some figures on its royalties from Mexican operations. The company holds a 2.0% net smelter return (NSR) royalty on the production of First Majestic’s Ermitaño mine in Sonora. Orogen’s share of production on the quarter was $1.18 M consisting on 435 Oz AuEq, resulting from the process of 213.9 K tonnes @ 3.12 gpt Au, 39 gpt Ag, which produced 20,073 Oz Au, 142 K Oz Ag.
  • Bear Creek Mining Corp. reported its financial results for Q2 2023. During the period, 121.5 K tonnes were mined at its Mercedes mine in Sonora, 125.1 K tonnes were processed @ 2.42 gpt Au, recovering 94.53% Au to produce 9,212 Oz Au, 39,827 Oz Ag, or 10,132 Oz AuEq at cash cost $1,337 per Oz AuEq and an AISC of $1,646 per Oz AuEq. “The Mercedes mine has been inconsistent in achieving the anticipated gold grades projected in the mine plans and geological models the Company inherited upon its acquisition of Mercedes in April 2022”. Mining costs have declined by 23% in recent months and are expected to continue to reduce in the coming months due to changes in mining methods. Higher grades are to be mined from areas close to current production.
  • Minera Alamos Inc. provided an operation update for Q2 2023 and some guidance on its operations on Q3. Strip ratios were maintained below 2:1 waste vs mineralized material during mining operations, with 25% of material averaging 1.06 gpt Au being crushed and 75% of material averaging 0.43 gpt Au being sent directly to the leach pads, for an average grade of 0.59 gpt Au in the leach pads. The company expects that the precipitation levels in 2023 will allow more normal mining and production plans. Overall pad capacity is to triple if constructive communications with SEMARNAT (Environmental regulator) are fruitful. A maiden resource estimate is expected in Q3, covering the primary mineralized zones surrounding the Nicho operations. Alamos had cash and cash equivalents of $8.27 M by the end of the period. Subsequent to quarter’s end, $2.57 M ($33.2 M pesos) of VAT were returned to the company by the Mexican revenue service (SAT).
  • Mundoro Capital Inc. reported financial results for the first half of 2023. In H1 2023 the company generated $1.46 M in fees and payments. At the end of the period Mundoro held $8.4 M in cash and cash equivalents (Camargo, Chihuahua).

ON FINANCING

  • Aztec Minerals Corp. closed the first tranche of its non-brokered private placement for gross proceeds of CAD$911.6 K. “Due to investor interest in the private placement, Aztec intends to increase the financing from the original stated amount of up to CAD$1 million to up to CAD$1.2 million” (Cervantes, Sonora).
  • Orla Mining Ltd. amended its existing US$150 M credit facility with the Bank of Nova Scotia, Bank of Montreal and Canadian Imperial Bank of Commerce. The facility stays at US$150 M, with the ability to increase to US$200 M, with a 4-year term (increasing it by two years) and an interest rate will be based on the term SOFR rate, plus an applicable margin ranging from 2.50% to 3.75% based on the company’s leverage ratio at the end of each fiscal quarter. “The Amended Credit Facility is payable in full at maturity and removes quarterly mandatory repayments required under the previous term facility” (Camino Rojo Oxides, Zacatecas).
  • Colibri Resource Corp. announced an extension to complete its previously announced non-brokered private placement by September 13, 2023. “The Company is offering up to 1,000 units, each unit being comprised of: (i) a US$1,000 principal amount of 10% unsecured convertible debenture (a “Debenture”) with a maturity date (“Maturity Date”) of 2 years from the date of issuance; and (ii) 5,416 common share purchase warrants of the Company …” (Evelyn, Sonora).
  • Regency Silver Corp. will be present at the 2023 Precious Metals Summit in Beaver Creek, Colorado. Regency has arranged a non-brokered private placement of up to CAD$1.5 M in gross proceeds (Dios Padre, Sonora).
  • Alamos Gold Inc. declared a quarterly dividend of US$0.025 per common share (Mulatos, Sonora).
  • Commander Resources Ltd. closed the non-brokered private placement announced on August 3, 2023, for total gross proceeds of $346 K (Pedro, Durango).
  • Sonoro Gold Corp. closed the final tranche of its previously announced non-brokered private placement for additional gross proceeds of C$259.2 K, accruing a total of C$2.26 M (Cerro Caliche, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Sonoro Gold Corp. announced a positive preliminary economic assessment (PEA) for its Cerro Caliche project in Sonora. The scope is for nine years life of mine (LOM) 33,000 Oz AuEq per year operation to obtain 297,575 Oz AuEq on recoveries of 72% Au, 27% Ag, with a pre-Tax net present value (NPV) of US$71.4 M, a pre-Tax internal rate of return (IRR) of 59% and after-Tax NPV (at 5%) of US$47.7 M with an IRR of 45%. An initial CAPEX cost of US$15.5 M and sustaining capital of US$15.5 M are envisaged, to produce at cash cost US$1,295 per Oz AuEq and an AISC of US$1,395 per Oz AuEq with a payback period of 2.9 years.
  • Luca Mining Corp. announced the signing of a memorandum of understanding with EnviroGold Global Ltd. to process the tailings at Luca’s Campo Morado Mine in Guerrero. The scope of the project is to evaluate the reprocessing of 3.29 M tonnes @ 1.32% Zn, 0.3% Cu, 0.49% Pb, 1.57 gpt Au, 94 gpt Ag, and produce a PEA for the project. On a 2021 initial testwork with EnviroGold’s, a gold recovery of 60% was achieved. The aim of the project is to increase this gold recovery rate to levels reached by EnviroGold on the Hellyer project in Australia (also a volcanogenic massive sulfide deposit, as Campo Morado), where it achieved recoveries of 90% Au, 90% Ag by leach, and 91% Cu and 82% Zn reported to a pregnant solution suitable for subsequent recovery.
  • Bear Creek Mining Corp. provided results from underground definition and delineation drilling at its Mercedes mine in Sonora. “The Company has focused drilling on the Marianas, Rey de Oro, Diluvio and Lupita deposits, all of which are associated with near-term production; however, the results also hold significant implications for exploration upside”. Highlighted true width intercepts comprise 1.0 m @ 47.90 gpt Au, 39 gpt Ag; 5.2 m @ 62.59 gpt Au, 93 gpt Ag; 4.3 m @ 7.55 gpt Au, 28 gpt Ag; 4.4 m @ 3.53 gpt Au, 10 gpt Ag; 2.1 m @ 18.41 gpt Au, 11 gpt Ag in the Marianas zone, 1.4 m @ 21.00 gpt Au, 11 gpt Ag; 4.9 m @ 3.52 gpt Au, 53 gpt Ag; 0.9 m @ 29.30 gpt Au, 63 gpt Ag; 4.2 m @ 4.56 gpt Au, 71 gpt Ag in the Rey de Oro Zone, 0.8 m @ 22.4 gpt Au, 127 gpt Ag in the Diluvio zone and 3.4 m @ 5.46 gpt Au, 95 gpt Ag in the Lupita zone. Highlighted core-length intervals from the Diluvio zone comprise 6.7 m @ 3.24 gpt Au, 63 gpt Ag; 14.3 m @ 4.11 gpt Au, 54 gpt Ag; 6.1 m @ 3.54 gpt Au, 63 gpt Ag; 6.5 m @ 5.51 gpt Au, 45 gpt Ag; 5.1 m @ 7.11 gpt Au, 78 gpt Ag; 1.5 m @ 9.23 gpt Au, 34 gpt Ag.
  • Discovery Silver Corp. submitted for evaluation the environmental impact assessment (Manifestación de Impacto Ambiental, or MIA) for its Cordero project in Chihuahua. “The MIA is one of the principal permits required for the development of Cordero and encapsulates extensive social and environmental work programs completed by the Company’s team in Mexico since 2020 in parallel with multiple reviews by third-party consultants.”
  • Mammoth Resources Corp. provided an update on ongoing exploration activities at its Tenoriba property in Chihuahua. The objective is to evaluate how to produce a resource estimation and define the processes through which the precious metals can be recovered. These activities include: (1) metallurgical testing of oxide material from the 1.5 km by 0.5 km Carneritos area. Preliminary metallurgical tests have already been performed on material from the Masuparia area; (2) analysis of all geological information, including drill data, by an independent mineral resource modelling expert aiming for the distribution of drill holes required to produce a maiden NI 43-101 mineral resource; and (3) defining future drill hole locations upon which to achieve this mineral resource.

ON DEALS AND CORPORATE ISSUES             

  • Southern Empire Resources Corp. entered into an agreement with Cuprum Mining Corp. to acquire up to 100% in the share capital of Cuprum, and thereby on the Suaqui Verde copper project in Sonora. Southern can acquire 10% of Cuprum by paying C$500 K within 90 days and issuing 7.5 M shares of Southern to Cuprum shareholders. Another 10% can be acquired by paying C$250 K to Cuprum, issuing 7.5 M shares and incurring in C$750 K on exploration expenditures on or before 15 months of closing. An additional 10% can be acquired by paying $500 K and incurring in additional C$750 K in exploration on or before 30 months from closing. Additional 20% can be acquired by Southern by paying C$500 K and incurring additional C$750 K within 45 months of closing. Southern Empire can acquire an additional 50% in Cuprum by paying C$750 K and incurring in additional C$1 M (total of C$3.25 M) on or before 60 months of closing. A 2% NSR “may be payable” subsequent to commercial production. The project encompasses 1,952 hectares with oxide and secondarily enriched copper sulfide mineralization on a porphyry copper system. A resource defined with 106 historical RC and diamond holes contains 51.2 M tonnes @ 0.31% Cu in the indicated category.
  • Excellon Resources Inc. provided an update on its projects in USA, Germany and Mexico. “As the Platosa Mine was placed on care and maintenance in earlyQ4 2022, the Company is assessing its strategic options, including the potential sale of select properties or complete divestiture of the Mexico operations. The Company will provide further updates on the Mexico operations as necessary.” (Platosa, Durango).
  • Silver Tiger Metals Inc. announced the appointment of Francisco Albelais as Vice-President of Operations and Mr. Charles Spath as Vice-President of Technical Services. (El Tigre, Sonora).
  • Gold Royalty Corp. has completed the indirect acquisition of a 1.0% net smelter return (NSR) royalty on portions of the Cozamin Cu-Ag mine in Zacatecas, from Endeavour Silver Corp. Pursuant to the transaction, Gold Royalty indirectly acquired the royalty for US$7.5 M in cash consideration.

ON SOCIAL RESPONSIBILITY

  • No relevant news.

On the image below: Silicified structure ridge on a project in the Sonoran Desert. Picture by Jorge Cirett.

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

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By Jorge Cirett                                            

During the 33rd week of the year (August 14th to August 20th, 2023), 18 companies working in Mexico posted news releases. Two companies informed on exploration work at its properties, three reported second quarter 2023 results and one more of a fatality on an underground mine. One company informed on a private placement and one more on incentive option granting to directors, employees and consultants. Four companies informed on technical reports, updated mineral resources, drilling results and metallurgical testing on their projects. The closing on the transfer of a property in Durango was announced. ON MEXICO ISSUES, Camimex ask for the government intervention to reach an end to the Peñasquito mine strike, which begun in early June, and also for speedier action on environmental permitting. ON EXPLORATION, in Sonora, Colibri Resource received the permit to drill at Evelyn. In Coahuila, Monumental Minerals updated on its drilling program at Jemi. ON MINING, Guanajuato Silver reported a fatality on one of its mines. Sierra Metals, Discovery Silver and Americas Gold and Silver released production results for Q2 2023. ON FINANCING, Barksdale granted options to directors, employees and consultants. Oroco Resource raised $1.75 M. ON RESOURCES AND DEVELOPMENT, Golden Tag updated the mineral resource estimate for La Parrilla, in Durango. GR Silver Mining released drilling results from the San Marcial deposit on its Plomosas project in Sinaloa. Sierra Madre Gold and Silver released drilling results from the Tepic project in Nayarit. Silver Tiger Metals released drilling results from El Tigre, in Sonora. Vizsla Silver announced positive metallurgical test results for the Copala resource area on its Panuco project in Sinaloa. ON DEALS AND CORPORATE ISSUES, First Majestic Silver and Golden Tag Resources closed the transaction on La Parrilla mine in Durango. ON SOCIAL RESPONSIBILITY, no relevant news. ON MEXICO ISSUES

  • Camimex (Cámara Minera de México) asks relevant authorities to contribute in the solution to the Peñasquito strike in Zacatecas, and to act more speedily on the granting of environmental permits needed.

ON EXPLORATION

  • Colibri Resource Corp. received the necessary permit to drill up to 2,000 m on the Evelyn property in Sonora. The program is focusing on the Main Zone and West El Sahuaro areas.
  • Monumental Minerals Corp. provided an update on the current drill program at the Jemi project in Coahuila. To date 1,800 m have been drilled targeting rare earth mineralization, with 12 holes completed and a final one underway, with results expected in about three weeks. “Numerous intrusive peralkaline dykes, sills, and veins, with identifiable eudialyte … were intersected in the completed holes … These peralkaline dykes and sills tend to occur in structural zones that appear to be adjacent to larger bodies of syenitic intrusions and are associated with irregular skarn mineralization at the contacts with the host carbonate sedimentary rocks. These zones are as much as several tens of meters in width downhole. The syenite may be the feeders for the peralkaline features (parental rocks) and pegmatitic intrusive rocks. Light rare earth element (LREE) bearing minerals such as monazite and xenotime have also been identified by visual inspection.”

ON MINING

  • Guanajuato Silver Co. reported an employee fatality on August 12 due to an accident at the San Ignacio mine in Guanajuato.
  • Sierra Metals Inc. reported results for the quarter, including figures from its Mexican operations. At Bolivar, in Chihuahua, 4,640 tonnes were milled per day for a total of 406 K tonnes in the period, to produce 10.7 M Lb CuEq at cash cost $1.62 and an AISC of $3.02 per Lb CuEq. The Cusi mine in Chihuahua (a non-core asset) operated at 596 tpd and processed 51.7 K tonnes during the period to produce 241 K Oz AgEq.
  • Americas Gold and Silver Corp. reported consolidated financial and operational results for the quarter ended June 30, 2023, including figures from its Mexican operations. At Cosalá, in Sinaloa, 335 K Oz Ag, 3.2 M Lb Pb, 9.6 M Lb Zn were produced at cash cost $4.51 and an AISC of $11.10 per Oz AgEq.
  • Discovery Silver Corp. announced its financial results for the second quarter 2023 and provided an update on the quarter and subsequent events. The 2022 Environmental, Social and Governance (ESG) report was released. A marketed public offering raised C$51.75 M, “Completion of the reserve expansion and definition component of our Feasibility Study program consisting of an additional 35,000 m of drilling in over 100 drill holes completed since the cut-off for the Pre-Feasibility Study”. As of June 30, 2023, Discovery had cash and cash equivalents of $68 M.

ON FINANCING

  • Barksdale Resources Inc. announced the granting of incentive stock options to its directors, employees and consultants for up 1.3 M shares at a price of $0.59 per share. (San Javier, Sonora).
  • Oroco Resource Corp. closed a non-brokered private placement, raising $1.75 M (Santo Tomás, Sinaloa).

ON RESOURCES AND DEVELOPMENT

  • Golden Tag Resources Ltd. completed an updated mineral resource estimate for La Parrilla Silver Mine Complex in Durango. The resource includes 22 veins within the Rosarios, San Marcos and Quebradillas underground mines, currently on care and maintenance. Indicated resources are estimated at 615 K tonnes @ 176 gpt Ag, 0.08 gpt Au, 1.55% Pb, 1.39% Zn (or 263 gpt AgEq), containing 3.48 M Oz Ag, 1,700 Oz Au, 9.6 K tonnes Pb, 8.5 tonnes Zn, or 5.19 M Oz AgEq. Inferred resources stand at 1.26 M tonnes @ 191 gpt Ag, 0.12 gpt Au, 0.99% Pb, 1.01% Zn (or 256 gpt AgEq), containing 7.73 M Oz Ag, 5,000 Oz Au, 12.4 K tonnes Pb, 12.7 K tonnes Zn, or 10.33 M Oz AgEq.
  • GRSilver Mining Ltd. announced results from one step-out drill hole outside the mineral resource boundary in the San Marcial area of its Plomosas project in Sinaloa. Highlighted core length intervals comprise 20.2 m @ 187 gpt Ag, 0.05 gpt Au, 0.3% Pb, 0.7% Zn (including 5.7 m @ 513 gpt Ag, 0.05 gpt Au, 0.4% Pb, 0.8% Zn, which includes 0.8 m @ 2,041 gpt Ag, 0.14 gpt Au, 0.8% Pb, 1.9% Zn). The hole “intersected a multistage quartz-calcite-sulfide zone composed of irregular veins and breccias crosscutting other hydrothermal breccias …”.
  • Sierra Madre Gold and Silver Ltd. announced results from six additional diamond drill holes of the current program at its Tepic project in Nayarit. The holes targeted the Taunas and Veta Tomas structures, with highlighted intercepts comprising 2.50 m @ 296 gpt Ag, 1.15 gpt Au; 0.60 m @ 111 gpt Ag, 2.06 gpt Au; 4.85 m @ 84 gpt Ag, 0.24 gpt Au; 10.05 m @ 158 gpt Ag, 0.46 gpt Au; 4.35 @ 258 gpt Ag, 0.68 gpt Au; 1.0 m @ 92 gpt Ag, 0.36 gpt Au. “The Tepic Project is a +2,600-hectare project where the previous operator completed 149 core holes totaling more than 31,000 meters. “
  • Silver Tiger Metals Inc. released results from drilling at El Tigre project in Sonora. Highlighted core length results from the Sooy vein and Sulfide Zone comprise 1.0 m @ 0.01 gpt Au, 178 gpt Ag, 0.22% Cu, 1.0% Pb, 1.7% Zn; 10.7 m @ 0.06 gpt Au, 74 gpt Ag, 0.08% Cu, 0.5% Pb, 0.5% Zn (including 2.3 m @ 0.06 gpt Au, 191 gpt Ag, 0.22% Cu, 1.4% Pb, 1.6% Zn); 4.7 m @ 0.15 gpt Au, 344 gpt Ag, 0.44% Cu, 0.6% Pb, 1.0% Zn; 0.5 m @ 0.26 gpt Au, 1,294 gpt Ag, 0.62% Cu, 3.8% Pb, 6.3% Zn; 3.4 m @ 1.57 gpt Au, 592 gpt Ag, 0.08% Cu, 0.4% Pb, 0.7% Zn; 10.5 m @ 1.98 gpt Au, 151 gpt Ag, 0.14% Cu, 1.4% Pb, 2.9% Zn (including 5.3 m @ 3.87 gpt Au, 249 gpt Ag, 0.22% Cu, 2.2% Pb, 4.4% Zn); 4.0 m @ 0.11 gpt Au, 786 gpt Ag, 0.68% Cu, 0.6% Pb, 1.3% Zn; 0.8 m @ 0.16 gpt Au, 1,549 gpt Ag, 1.73% Cu, 0.2% Pb, 0.7% Zn.
  • Vizsla Silver Corp. announced positive preliminary metallurgical test results for the Copala resource area at its Panuco project in Sinaloa. Drill core was first crushed and the subject to simple bulk flotation. Flotation + regrind + Cyanide Leach on flotation concentrate, coupled with Cyanide Leach of Rougher Tails recovered 90.6% Au, 93.7% Ag. “Further test work of material from the Napoleon, Tajitos and Copala deposits is planned to better understand and optimise grind size, cyanide consumption, leach kinetics, residence times and recoveries.”

ON DEALS AND CORPORATE ISSUES             

  • First Majestic Silver Corp. and Golden Tag Resources Ltd. closed the transaction on the La Parrilla past producing mine in Durango. First Majestic received 143.7 M shares of Golden Tag (US$20 M), and is to receive up to US$13.5 M in the form of three milestone payments either in cash or shares. The first repayment of US$2.7 M is due 18 months on the closing, the second US$7.75 M payment upon receipt of a resource estimate of 5 M Oz AgEq in reserves or 22 M Oz AgEq in measured and indicated resources and the third US$5.05 M payment upon receiving a resource estimate of 12.5 M Oz Ag Eq measured and indicated resources in a new zone on La Parrilla. In addition, First Majestic purchased 18 M shares of Golden Tag and 9 M warrants. Following the closing First Majestic owns 40.8% of Golden Tag shares, and if the warrants are exercised will own 42.2% on a partially diluted basis.

ON SOCIAL RESPONSIBILITY

  • No relevan news.

On the image below: Silicified vein ridge on a project in the Sonoran Desert. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the First Week of August 2023

/ Gambusino Prospector / Leave a comment

By Jorge Cirett                                             

During the 31st week of the year (July 31st to August 6th, 2023), 25 companies working in Mexico posted news releases. Five companies informed on exploration work at its properties and seven more reported second quarter 2023 results. Two companies informed on private placements, while one declared a dividend payment. Five companies informed on technical reports, updated mineral resources, drilling results, mining plans and mine preparations on their projects. One company sold the royalties in some properties and one other is reviewing exploration opportunities in South America. ON MEXICO ISSUES, one company made clear commitment to get projects beyond Mexico, the country new mining policies showing its might. The Union – Grupo Mexico conflict in Sombrerete is to be solved in Mexico, not under the T-MEC, according to the federal government. Income tax returns from the mining industry fell by 35% on the first semester 2023. ON EXPLORATION, in Sonora, Prismo Metals mobilized a drill rig to Los Pavitos; Silver Spruce Resources resumed work at Diamante. In Chihuahua, Kootenay Silver updated on work at Columba. In Sinaloa, Prismo Metals updated on the drilling at Palos Verdes. ON MINING, Fresnillo PLC, Starcore International Mines, Capstone Copper, Equinox Gold, First Majestic Silver, Torex Gold and Orla Mining released production results for Q2 2023. ON FINANCING, Goldgroup Mining issued shares on a convertible loan. First Majestic Silver declared the payment of a dividend per share. Colibri closed the first tranche of a private placement. ON RESOURCES AND DEVELOPMENT, SilverCrest Metals released a new technical report with updated mineral resources and a new mine plan for Las Chispas in Sonora. Impact Silver updated on work to refurbish the Plomosas mine in Chihuahua. GoGold Resources released drilling results from Los Ricos South in Jalisco. Discovery Silver released drilling results from the FS program at Cordero, in Chihuahua. Heliostar Metals reported on the re-scoping study at Ana Paula, in Guerrero. ON DEALS AND CORPORATE ISSUES, Endeavour Silver entered into an agreement to sell its royalty on the Cozamin property. Xali Gold is to review exploration opportunities in South America. ON SOCIAL RESPONSIBILITY, no relevant news. ON MEXICO ISSUES

  • Editor comments. One more company working exclusively in Mexico announced plans to look for projects in other countries. No one can say the policies imposed by the current administration are not producing the results sought, even if its full weight is to be felt in the years to come.
  •  The federal government directed that the labor conflict between Grupo Mexico and a Union (Sindicato Nacional de Trabajadores Mineros, Metalúrgicos, Siderúrgicos y Similares de la República Mexicana) in the Sombrerete mine in Zacatecas, has to be solved in Mexican courts, out of the T-MEC rapid response labor mechanism.
  • Income tax returns fell 34.6% year on year on the first semester of 2023, the biggest drop in 20 years. On VAT (IVA) and special tax on products and services (IEPS), the mining sector had refunds for $134 M ($2,275 M pesos) and $6.5 M ($110 M pesos) respectively.  

ON EXPLORATION

  • Kootenay Silver Inc. informed two of three surface access agreements needed have been now signed, and the third one is in the final negotiation stage at its Columba project in Chihuahua.
  • Prismo Metals Inc. announced the mobilization of a drill rig for the planned 2,500 m program to its Los Pavitos project in Sonora. Assays for the last four trenches dug at the project were published. Highlighted intervals comprise 1.0 m @ 3.98 gpt Au, 5 gpt Ag; 2.80 m @ 1.18 gpt Au, 16 gpt Ag. 
  • Prismo Metals Inc. updated on the drilling program at its Palos Verdes project in Sinaloa. Ten holes for a total of 2,035 m have been completed on the 2,500 m program, with the eleventh hole in progress and three holes remaining. On a second press release the company announced the expansion of the program by a joint committee by Prismo and Vizsla, to 3,600 m “in ten holes to be completed in two phases”.
  • Silver Dollar Resources Inc. submitted a drilling permit application for the next phase of drilling at the Nora project in Durango. “The geological setting is a Tertiary-aged volcanic flow-dome complex. Gold-silver mineralization is hosted within two structurally controlled epithermal veins, Candy and Nora…. Only 500 m of the potential 3-km strike of the Candy vein structure has been drill tested, and only to a depth of 250 m below surface”.
  • Colibri Resource Corp. and partner Silver Spruce Resources Inc. announced the resumption of field works at the Diamante project in Sonora. Stream sediment sampling, geological mapping and rock chip sampling are some of the planned activities.
  • Fresnillo PLC. provided its Q2-2023 production results. The Company produced over 14 M Oz Ag, 152,217 Oz Au, 13,994 tonnes Pb and 25,670 tonnes Zn from its operation in Fresnillo, Saucito and Juanicipio in Zacatecas, Cienega in Durango, Herradura and Nochebuena in Sonora, and San Julian in Chihuahua.
  •  Starcore International Mines Ltd. presented results for its fiscal year and quarter ending on April 30, 2023. During the quarter the company processed 56.8 K tonnes @ 1.45 gpt Au, 11.2 gpt Ag, recovering 86.1% Au, 48.3% Ag, to produce 2,300 Oz Au, 10 K Oz Ag at its San Martin mine in Queretaro. For the year, the company produced 10,000 Oz Au, 85.4 K Oz Ag. Mine operating cash cost was $1,611 and $1,535 per AuEq Oz respectively for the quarter and full year.
  • Capstone Copper Corp. reported financial results for the second quarter of 2023, including figures from its Mexican operations. At Cozamin, in Zacatecas, 6.6 K tonnes Cu were produced at cash cost $1.63 per Lb Cu.
  • Equinox Gold Corp. announced its second quarter 2023 financial and operating results, without disclosing figures per project.
  • First Majestic Silver Corp. announced unaudited consolidated financial results for the second quarter 2023. During the period the company produced 2.63 M Oz Ag, 40,658 Oz Au, or 5.97 M Oz AgEq.
  • Torex Gold Resources Inc. reported Q2 2023 and operational results. During the period, the company mined 11.77 M tonnes from the open pit (13,293 tpd), 174 K tonnes from underground (1,913 tpd) at the Limon Guajes mine in Guerrero, of which 1.21 M tonnes were processed to produce 107,507 Oz Au at cash cost $848 per Oz Au and an all-in sustaining cost of $1,308 per Oz Au. Torex maintains its 2023 guidance to produce 440 K to 470 K Oz Au. The quarter closed with net cash of $273.8 M.
  • Orla Mining Ltd. announced the results for the second quarter of 2023. At the Camino Rojo Oxide mine in Zacatecas, 29,058 Oz Au were produced at an AISC of $696 per Oz Au. The pit development is being hindered by SEMARNAT lateness to authorize permits. Cash balance at the end of the period was $114.5 M.   

ON FINANCING

  • Goldgroup Mining Inc. announced the issuance of 29.05 M shares upon conversion of the company’s outstanding convertible loan with a face value of $2.16 M (Cerro Prieto, Sonora).
  • First Majestic Silver Corp. declared a cash dividend of $0.0051 per common share for the second quarter of 2023 (San Dimas, Durango).
  • Colibri Resource Corp. closed the first tranche of the previously announced non-brokered private placement of “Units”, for gross proceeds of US$487 K. “Each Unit is comprised of: (i) US$1,000 principal amount of 10% secured convertible debentures (the “Debentures”) issued by the Company with a maturity date (“Maturity Date”) of 2 years from the date of issuance; and (ii) 5,416 common share purchase warrants of the Company” (Diamante, Sonora).

ON RESOURCES AND DEVELOPMENT

  • SilverCrest Metals Inc. announced results from an updated independent technical report for the Las Chispas operation in Sonora. The report describes a 1,200 tpd operation of ore averaging 4.02 gpt Au, 396.1 gpt Ag, recovering 98.0% Au, 97.0% Ag, to produce 57 K Oz Au, 5.5 M Oz Ag per year in an operation with a mine life (LOM) of 8 years, to generate a post-tax net present value of $549 M. Cash cost is estimated at $7.84 per Oz AgEq and an AISC of $11.98 per Oz AgEq. “The Mineral Resource Estimate model was updated to reflect: narrower veins located over a larger area, thus requiring increased underground development, increased constraints on geologic, statistical, and geostatistical modelling parameters resulting in reductions in resources mainly in Babicanora Main and Babicanora Norte Main veins and increased resources in the Babi Vista Vein, including the Babi Vista Splay. Additionally, there is an increase in the number of Mineral Resource veins and the veins are more widely dispersed. The Updated Inferred Mineral Resource Estimate is reduced from the 2021 FS due to conversion to M&I Mineral Resources and application of the same stricter constraints as applied to M&I Mineral Resources”.
  • Impact Silver Corp. provided an update on the recently acquired Plomosas mine in Chihuahua. The mill refurbishment is in the final stages, with testing and modification of the plant to start in late summer to ramp up production to the 200 tpd design capacity. The company has applied for an expansion of the current tailings pond while planning and permitting of the next one takes place. Refurbishment of ventilation, electrical and lighting systems are ongoing, and mine planning is being completed for 2023-2024. The current workforce is comprised by 70 company workers and 25 contract workers.
  • GoGold Resources Inc. announced drilling results from Los Ricos South project in Jalisco. The highlighted core length intercepts comprise 30.2 m @ 1.68 gpt Au, 278 gpt Ag (including 9.70 m @ 4.54 gpt Au, 769 gpt Ag); 34.8 m @ 1.37 gpt Au, 132 gpt Ag (including 7.0 m @ 4.68 gpt Au, 440 gpt Ag); 32.70 m @ 1.19 gpt Au, 124 gpt Ag; 11.7 m @ 0.93 gpt Au, 387 gpt Ag (including 1.40 m @ 5.36 gpt Au, 2,780 gpt Ag); 23.10 m @ 0.80 gpt Au, 143 gpt Ag; 28.10 m @ 0.71 gpt Au, 129 gpt Ag. “The Main area drilling campaign’s purposes is to better define the very high-grade portions of the current deposit that may be amenable to bulk underground mining…… It is expected that these holes will be included in an updated Resource to be released by the end of the summer”.
  • Discovery Silver Corp. released results from feasibility study (FS) drilling at its Cordero project in Chihuahua. Highlighted core length intervals of the reserve and expansion drilling comprise 62.10 m @ 0.25 gpt Au, 48 gpt Ag, 0.6% Pb, 0.6% Zn; 45.0 m @ 0.24 gpt Au, 66 gpt Ag, 0.5% Pb, 0.7% Zn; 51.7 m @ 0.19 gpt Au, 51 gpt Ag, 0.6% Pb, 0.9% Zn; 15.10 m @ 0.08 gpt Au, 278 gpt Ag, 3.1% Pb, 2.9% Zn; 12.4 m @ 0.19 gpt Au, 168 gpt Ag, 1.4% Pb, 3.1% Zn; 37.4 m @ 0.09 gpt Au, 79 gpt Ag, 1.1% Pb, 1.5% Zn; 38.5 m @ 0.17 gpt Au, 104 gpt Ag, 0.5% Pb, 0.3% Zn; 82.1 m @ 0.03 gpt Au, 33 gpt Ag, 0.6% Pb, 0.9% Zn. Discovery has now drilled 52,000 m in 164 holes as part of the FS drill program. Incoming “property-wide drilling will initially target large chargeability anomalies in the Sanson area (approximately 3.5 km to the northeast of Cordero) and skarn targets at depth in the northeast of the deposit. Currently, 9,000m of drilling is planned in 2023”.
  • Heliostar Metals Ltd. reported progress on re-scoping of the current pre-feasibility study (PFS) at the Ana Paula project in Guerrero. “The Company is evaluating three underground mining scenarios, with different cut-off grades and mining rates, that are being advanced for more detailed evaluation and comparison…… The Company will refine the options upon receipt of an updated resource model and metallurgical program results, both of which rely on drilling completed in 2023. Metallurgical results will be reported in October and an updated resource model is expected in November 2023”.

ON DEALS AND CORPORATE ISSUES              

  • Endeavour Silver Corp. entered into an agreement with Gold Royalty Corp. to sell all of its interest in a 1% Cozamin Royalty for a total consideration of US$7.5 M, payable in cash. “The Royalty applies to two concessions (Calicanto and Vicochea) on Capstone’s Cozamin copper-silver mine, located 3.6 kilometres north-northwest of Zacatecas City in state of Zacatecas, Mexico”.
  • Xali Gold Corp. has decided to review exploration opportunities in South America, including Peru. The company updated on its Mexican projects: Exploration at El Oro in Estado de Mexico has been put on hold, whilst Sun River Gold (who has an option in the El Oro mine tailings) has been advancing permitting and providing some cash flow through advances on the Net Profit Interest due once in production. “Negotiations are also underway with Mexican groups regarding both upgrades and financing commitments to make the San Dieguito de Arriba (“SDA”) Plant in Western Mexico fully operational. Xali Gold terminated the previously announced agreement (see January 18, 2023 News Release) with Minera Cinco Reales S.A. de C.V. (“MCR”) earlier this month due to MCR’s lack of progress”.

ON SOCIAL RESPONSIBILITY

  • Aura Minerals Inc. released its 2022 sustainability report, with a 62% reduction in frequency rates of accidents, 92% of water recycling and establishing a decarbonization plan with the goal of reducing GHG emissions by 5% from 2020 levels by 2023.

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

The Mining and Exploration News in Mexico: Highlights on the First Week of July 2023

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By Jorge Cirett                                             

During the 27th week of the year (July 3rd to July 9th, 2023), 11 companies working in Mexico posted news releases. One company informed on exploration work at its property, while there were no relevant news on mining. One company informed on the closing of private placement. Two companies reported on work at their advanced properties. One company deferred a significant payment on the acquisition of a property and one more announced the revocation of a management cease trade order. ON MEXICO ISSUES, Camimex pointed that investment in the mining industry is down 34.5% from its high in 2012, and that Mexico has fallen 17 places in the Investment Attractiveness Index by the Fraser Institute since 2010.  ON EXPLORATION, in Sonora, Tocvan Ventures concluded the leaching test of material from the Pilar project. ON MINING, no relevant news. ON FINANCING, Canuc Resources closed a CAD$2 M non-brokered private placement. Inomin Mines granted 1.4 M stock options to directors and advisors of the company. ON RESOURCES AND DEVELOPMENT, Avino Silver & Gold Mines released results from deep drilling at its Avino property in Durango. ON DEALS AND CORPORATE ISSUES, Bear Creek Mining signed an agreement with Equinox Gold to defer a US$26 M payment over the acquisition of the Mercedes mine in Sonora. ON SOCIAL RESPONSIBILITY, Discovery Silver released its 2022 ESG report. ON MEXICO ISSUES

  • According to Camimex (Cámara minera de México) investment in the Mexican mining industry in 2022 was 5.26 billion dollars (5,265 million pesos), a 34.5% drop relative to the historic high in 2012. Camimex president, Jaime Gutierrez Núñez, pointed that stability is needed and that the mining industry has to be incentivized, further adding that Mexico has lost 17 position is the Investing Attractiveness Index by the Fraser Institute from 2010 to 2022. The major concern of the sector relies on the exploration front, as the new law set an exploration monopoly by the government.
  • Camimex is trying to build along the Secretaría de Economía (SE) a new regional mining workplan along with the governors of Sonora, Chihuahua, Durango, Zacatecas and Guerrero, entities that comprise 84% of the national mining production. The plan had been presented to Tatiana Clouthier, the latter head of the SE.

ON EXPLORATION

  • Colibri Resource Corp. reported that its option partner Tocvan Ventures concluded the leaching process of bulk sample materials from its Pilar property in Sonora. The final results for recovery are pending on the 44 days of active leaching completed. New agitated bottle roll test returned 81% Au, 99% Ag recovery after 72 hours.

ON MINING

  • No Relevant News.

ON FINANCING

  • Canuc Resources Corp. closed a non-brokered private placement raising CAD $2 M. (San Javier, Sonora).
  • Inomin Mines Inc. reported the granting of 1.4 M stock options to directors and advisors of the company (La Gitana, Oaxaca).

ON RESOURCES AND DEVELOPMENT

  • Avino Silver & Gold Mines Ltd. released results from three drill holes on its Avino property, in Durango. The holes were drilled below Level 17, the current deepest working at the Elena Tolosa (ET) area of the Avino system. Highlighted true width results comprise 11.00 m @ 0.12 gpt Au, 148 gpt Ag, 0.58% Cu; 10.20 m @ 0.11 gpt Au, 138 gpt Ag, 0.33% Cu; 57.00 m @ 0.55 gpt Au, 99 gpt Ag, 1.21% Cu (including 0.80 m @ 1.74 gpt Au, 956 gpt Ag, 7.30% Cu; and 0.89 m @ 1.98 gpt Au, 1,243 gpt Ag, 5.81% Cu; and 0.85 m @ 16.50 gpt Au, 1,791 gpt Ag, 8.69% Cu; and 0.89 m @ 10.60 gpt Au, 1,083 gpt Ag, 8.58% Cu). “The direction of the increasing copper grade plunges steeply towards the east in the Avino vein. The changing tenor of the mineralization could be reflecting a transition from epithermal to porphyry-style mineralization”.
  • Southern Silver Exploration Corp. launched an interactive 3D and 360 degree presentation for the Cerro Las Minitas project in Durango (https://api.newsfilecorp.com/redirect/BpNNNFLRDO).

ON DEALS AND CORPORATE ISSUES              

  • Bear Creek Mining Corp. signed an agreement with Equinox Gold Corp. to defer a US$26 M current liability by issuing a five-year convertible promissory note with 7% interest. Payment of the note will satisfy the final purchase price installment for the Mercedes mine in Sonora.
  • Gatos Silver Inc. announced that on July 4, 2023 the Ontario Securities Commission fully revoked the management cease trade orders granted in respect of certain former and current senior officers on April 1, 2022, April 12, 2022 and July 7, 2022 (Cerro Los Gatos, Chihuahua).

ON SOCIAL RESPONSIBILITY

  • Discovery Silver Corp. released its 2022 ESG (Environmental Social and Governance) report, including the reception of the Socially Responsible Enterprise (ESR) and Great Place to Work awards.

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

The Mining and Exploration News in Mexico: Highlights on the Fourth Week of June 2023

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By Jorge Cirett                                             

During the 25th week of the year (June 19th to June 25th, 2023), 16 companies working in Mexico posted news releases. Three companies informed on exploration work at its properties, while there was no relevant news on mining, other than the continuation of a Union strike on Peñasquito. Three companies informed on the closing of financing tranches or the arrangement of new placements. Four companies reported on work at their advanced properties. One company updated on financing moves to pay for the acquisition of an idle property and one more on the plans for recommence mining on their recent acquisition. ON MEXICO ISSUES, Newmont declared force majeure on contracted base metal production due to the Union strike at Peñasquito. The first all-encompassing suspension on the recently passed Mining Law was granted to a Mexican mining company. The Sindicato Nacional de Mineros brought a complaint before the fast-response mechanism of the T-MEC, accusing Grupo Mexico of negating Union liberty since 2007. Grupo Mexico responded the San Martín mine operates with the free decision of its unionized workers, and that workers strongly support the current Union.  ON EXPLORATION, in Sonora, Colibri Resource updated on work at El Plomo project. In Coahuila, Monumental Minerals announced a maiden drill program at its rare-earth Jemi project. In Durango, Silver Dollar entered into a surface access agreement with the local Ejido at Nora. ON MINING, no relevant news. ON FINANCING, Canuc Resources closed a CAD$1.3 M financing round. Sonoro Gold closed the first tranche of a C$3 M financing, raising C$1.7 M. Coeur Mining arranged a private placement for $19 M. ON RESOURCES AND DEVELOPMENT, Prime Mining reported good drilling results below the resource shell at Los Reyes, in Sinaloa. Orla Mining released infill drilling results from the Sulphide zone at Camino Rojo in Zacatecas, and also from the Deep Extension zone and from an exploration play 7 km away. Aztec Minerals updated on geologic and geochemical information at Cervantes, in Sonora, and is preparing an RC drilling campaign. Discovery Silver provided an update on work at the Cordero project in Chihuahua. ON DEALS AND CORPORATE ISSUES, Excellon Resources updated on La Negra acquisition in Queretaro, and the financing arrangements being sought to support it. Impact Silver announced its plans for refurbishing the Plomosa mine and plant in Chihuahua. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • The first suspension with all-encompassing application against the recently approved Mining Law was granted by a federal judge from Mexico City on June 21, 2023, to Cobre del Mayo, the company that exploits the Piedras Verdes copper mine in Sonora. Before this ruling, the only suspensions admitted were for the automatic rejection of previously filed applications for mining concessions.
  • The Sindicato Nacional de Mineros (National Miners Union, headed by Napoleón Gómez Urrutia) presented a complaint against Grupo México under the fast response mechanism of the T-MEC, accusing the company of negating Union liberty and failure to comply with legal rulings on its favor, relating to a strike commenced by the Union in 2007 in which safety and contractual obligations were demanded. (It is much more likely that Napoleón Gómez Urrutia was aiming for the invalidation of a court arrest warrant on him related to the subtraction of 55 M dollars granted to workers of the Cananea mine on the sale of the property to Grupo Mexico. Napoleón Gómez Urrutia has legal immunity by its position as a senator). Grupo Mexico replied that its workers strongly back the current Union, and that the San Martín mine in Zacatecas operates with the free decision of its unionized workers.
  • Newmont declared “Force Majeure” on the production of lead and zinc that is to impact on contract obligations. The company was to produce about 200 K tonnes Zn and 80 K tonnes Pb on 2023, but the current Union strike is going to impact on its production forecast. Operations were suspended on June 7, 2023, by the Union, which is demanding an increase of the participation on the profit obtained by the company from 10% to 20%.

ON EXPLORATION

  • Colibri Resource Corp. reported results from geological mapping and outcrop sampling at the Pavo Real target on the Plomo property, EP project in Sonora. A 0.5 Km by 0.5 km area was selected and 90 grab samples collected, with 38 samples returning over 0.1 gpt Au and 13 samples over 1.0 gpt Au, peaking at 9.94 gpt Au. “The higher-grade samples also commonly include veinlets mapped as jasperoid which in thin section was determined to be a very fine-grained assemblage of limonite and hematite and interpreted to possibly be derived from a primary Fe-carbonate bearing vein assemblage. The mineralized tourmaline bearing breccia and stock work samples are massive to strongly foliated where foliation consistently has a north-northwest strike and moderate northeast dip”.
  • Monumental Minerals Corp. announced a maiden drill program planned for its Jemi rare earth element project in Coahuila. Exploration work has resulted in six high priority drill targets for dysprosium (Dy), terbium (Tb), neodymium (Nd), Praseodymium (Pr), niobium (Nb) and tantalum (Ta). “The goal of the drill program is to define and delineate the source of REE-mineralized (eudialyte +/- aegirine rich) intrusive dykes and sills”. The program envisages 1,800 m of drilling in 6 holes.
  • Silver Dollar Resources Inc. entered into a surface rights agreement with the Ejido Peña, covering the area of the Nora project in Durango.

ON MINING

  • No Relevant News.

ON FINANCING

  • Canuc Resources Corp. announced the closing of the first tranche of a non-brokered private placement financing, raising CAD$1.28 M in gross proceeds. (San Javier, Sonora).
  • Sonoro Gold Corp. closed the first tranche of the C$3 M previously announced non-brokered private placement, for gross proceeds of C$1.7 M. Directors and officers participated in the offering for $1.32 M, constituting a related party transaction at the TSX Venture Exchange (Cerro Caliche, Sonora).
  • Coeur Mining Inc. arranged a private placement for gross proceeds of $19 M (C$25 M). “The proceeds of the Offering will be used exclusively for qualifying Canadian Exploration Expenditures” (Palmarejo, Chihuahua).

ON RESOURCES AND DEVELOPMENT

  • Prime Mining Corp. reported drill results from four holes at the Z-T area of the Los Reyes project in Sinaloa. Two of the holes are located 100 to 200 m below the recently announced resource pit shell. Highlighted true width core intervals comprise 13.25 m @ 3.80 gpt Au, 82 gpt Ag (including 3.65 m @ 8.15 gpt Au, 89 gpt Ag); 11.40 m @ 3.96 gpt Au, 88 gpt Ag (including 2.00 m @ 19.40 gpt Au, 168 gpt Ag). “Together the mineralization in these drill holes further defines two high-grade mineralized shoots separated by 250 m. These intercepts open a significant area of exploration upside relative to the MRE pit shell for the Z-T area.”
  • Orla Mining Ltd. provided an update on exploration at its Camino Rojo project in Zacatecas. Highlighted core length results comprise 93.0 m @ 2.87 gpt Au; 56.9 m @ 3.26 gpt Au; 34.0 m @ 3.11 gpt Au (including 5.6 m @ 10.29 gpt Au); 43.0 m @ 2.12 gpt Au; 38.5 m @ 2.00 gpt Au; 63.0 m @ 1.89 gpt Au; 62.6 m @ 1.62 gpt Au (including 6.0 m @ 7.72 gpt Au); 24.5 m @ 3.18 gpt Au; 12.0 m @ 4.18 gpt Au; 29.0 m @ 3.16 gpt Au; 42.0 m @ 3.05 gpt Au in Camino Rojo Sulphides infill, further 8.5 m @ 3.52 gpt Au, 26 gpt Ag, 0.26% Cu, 3.6% Zn; 3.3 m @ 4.54 gpt Au, 7 gpt Ag, 0.06% Cu, 5.5% Zn; 1.5 m @ 15.4 gpt Au, 7 gpt Ag, 0.04% Cu, 4.4% Zn in the Camino Rojo Sulphides Deep Extension zone, and 10.5 m @ 0.69 gpt Au (including 1.5 m @ 4.02 gpt Au); 3.3 m @ 0.94 gpt Au; 1.5 @ 2.72 gpt Au; 1.3 m @ 61.2 gpt Au in the Guanamero zone of the Camino Rojo Regional Exploration. Polymetallic Au-Ag-Zn massive to massive sulphide mineralization has been confirmed in holes testing below the Caracol Formation hosted sulphides.  
  • Aztec Minerals Corp. received permits for a planned two-stage reverse circulation (RC) drilling program at its Cervantes project in Sonora. The first stage is to commence on Q3 2023 utilizing information gathered on the mapping and sampling of 4,600 m of roads. The quartz-feldspar porphyry is more extensive than the feldspar porphyry, and many of the sediments are less continuous and often as xenolithic rafts and roof pendants over the intrusive rocks. There is widespread phyllic alteration, minor potassic alteration as secondary biotite and zones of tourmaline mineralization; with gold showing positive relationship with vein intensity and silicic and phyllic alterations, and inverse relationship with argillic alteration. Au has strong correlation with As, Cu, Bi, Ag and W. With Mo being strongly distal. A marked Cu anomaly to the northeast associated with tourmaline and secondary biotite alteration. The focus is “to continue to define the open pit, heap leach gold potential of the porphyry oxide cap at California, test the down dip extensions of the silicic-phyllic alteration in the Qfp intrusive for deeper copper-gold porphyry sulfide mineralization underlying the oxide cap, and test for extensions of the California North target.”
  • Discovery Silver Corp. provided a project update on its Cordero project in Chihuahua. The company is to initiate the environmental permitting (Manifiesto de Impacto Ambiental, or MIA) process with the submission to SEMARNAT (Environmental regulator), and also “recently secured the surface rights that correspond with the planned open pit and key infrastructure locations at Cordero as well as a significant volume of water rights ….. Discovery also recently engaged M3 Engineering & Technology Corp to complete a technical review of the scope and cost to source water from existing water treatment plants in the region …… An impact assessment study and power installation study by Mexican electrical infrastructure authority CENACE were delivered earlier this year, with confirmation that there is sufficient capacity in the existing power grid to supply the Project with power for operations at peak throughput levels”. The company is also working on the front-end engineering design work for the feasibility study (FS), a resource update, metallurgical test work, process design, mine planning, geotechnical work and tailings study.

ON DEALS AND CORPORATE ISSUES             

  • Excellon Resources Inc. updated on the previously announced La Negra mine acquisition in Queretaro, from Orion Resource Partners. Excellon is focused on a successful completion of the C$10 M in gross proceeds financing, “but in parallel is reviewing potential operating scenarios that would allow Excellon to close on a lower level of initial financing that supports initiating advancement of La Negra while also adequately capitalizing the Company’s broader business”. The company is also in discussions with the holders of convertible debentures and assessing interim financing options as well as divestitures, mergers, or spin-offs to provide near-term liquidity.
  • Impact Silver Corp. updated on its plans for the recently acquired Plomosas mine in Chihuahua. Restart of production is scheduled for the second half of 2023, with design capacity to be approached on the first half of 2024. Underground equipment is under maintenance and repairs, mill foundations are being replaced, and the ball mill and conveyor-crushing systems are being upgraded. A new tailings dam is in the design and permitting stage, while alternate electric power options under evaluation, as well as changes in mining methods and mineral processing. Underground stations for drilling are in preparation, while drilling permits have been submitted for the surface program. Plomosas has a current JORC resource of 215 K tonnes @ 13.5% Zn, 6.3% Pb, 34 gpt Ag in indicated resources and 772 K tonnes @ 13.1% Zn, 3.0% Pb, 19 gpt Ag of inferred resources at a 3% Zn cut-off.

ON SOCIAL RESPONSIBILITY

  • No Relevant News.

On the image below: Barite-Quartz-Specularite vein on a project in the Sonoran Desert. Picture by Jorge Cirett.

Mexico’s Best Drilling Intercepts, Second Week of June 2023

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Only one company released drilling results from projects in Mexico. Defiance Silver provided an update of the recently completed program that focused in the Veta Grande vein system in Zacatecas. The holes tested zones near and within the San Acacio resource area, obtaining the thickest mineralized intercept drilled to date by Defiance in the Zacatecas district, with 41.83 m averaging 157 gpt Ag, 0.07 gpt Au, 0.16% Zn (including 15.96 m averaging 380 gpt Ag, 0.15 gpt Au, 0.12% Pb, 0.37% Zn) . The mineralization is of intermediate sulfidation epithermal character along structures.

The Mining and Exploration News in Mexico: Highlights on the Fourth Week of May 2023

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By Jorge Cirett                                             

During the 21st week of the year (May 22nd to May 28th, 2023), 15 companies working in Mexico posted news releases. Four companies informed on exploration on their properties, two companies informed on Q1 2023 or full-year 2023 production/financial results. One company announced the granting of share options to directors, officers and consultants. Five companies released drilling results on their advanced properties in Durango, Chihuahua, Sinaloa, and Guerrero. Two more companies informed on the acquisition/sale of projects. ON MEXICO ISSUES, no relevant news. ON EXPLORATION, in Sonora, Aztec Minerals completed a surface exploration program at Cervantes; Infinitum copper started drilling at La Adelita. In Durango, Silver Dollar is organizing the database of the Nora project. In Oaxaca, Vortex Metals initiated surface geological work at Riqueza Marina. ON MINING, Impact Silver and Guanajuato Silver released Q1 2023 production reports. ON FINANCING, Silver Viper granted incentive stock options to directors, officers and consultants. ON RESOURCES AND DEVELOPMENT, Avino Silver released results from drilling at the Avino mine in Durango. Heliostar Metals reported drilling results from the high-grade portion of the Ana Paula deposit in Guerrero. Capitan Mining provided an exploration update on the Cruz de Piedra project in Durango. Prime Mining reported drilling results from Los Reyes in Sinaloa. Discovery Silver released results from the feasibility study drilling at Cordero, in Chihuahua. GR Silver Mining released results from step-our holes at San Marcial, which is part of the Plomosas project in Sinaloa. ON DEALS AND CORPORATE ISSUES, Tarachi Gold closed the sale of the Magistral tailings project in Durango. Silver Dollar completed the acquisition of the La Joya project in Durango. ON SOCIAL RESPONSIBILITY, Torex Gold released its 2022 ESG performance report.

ON MEXICO ISSUES

  • No relevant News.

ON EXPLORATION

  • Aztec Minerals Corp. received sampling results and completed its phase 1 surface exploration program at Cervantes, in Sonora. Detailed geological mapping and continued chip channel sampling of exposed road cuts were carried out. The “surface road cut sampling and detailed geologic mapping has verified the strong relationships found between the quartz feldspar porphyritic intrusive, phyllic alteration and gold mineralization… Quartz veinlet intensity mapping shows strong correlation to the drill hole gold grade-thickness”. The phase 2 exploration program comprises a reverse circulation drilling campaign to expand the California target in all directions. To date Aztec has competed over 10,500 m of drilling on 54 holes at the Cervantes project.
  • Silver Dollar Resources Inc. provided a progress report on the Nora project in Durango. Silver Dollar received all historical technical information from Canasil and is “organizing it into a database to analyze, interpret and then plan the next phase”. There are 13 diamond holes from Canasil’s 2020-2021 drilling campaign with a total of 3,296 m testing 500 m of the Candy structure, returning up to 3.29 m @ 6.44 gpt Au, 884 gpt Ag and 1.53 m @ 20.59 gpt Au, 1,290 gpt Ag.
  • Infinitum Copper Corp. commenced drilling at its 6,450 ha La Adelita property in Sonora. The 2,500 m diamond drilling program with 15 holes is designed to expand the high-grade mineralized area at the Cerro Grande zone and to test for mineralization at depth at Las Trancas zone. Drilling is aimed to extend the north-south extent of mineralization to 500 m and step out up to 700 m west of the known mineralization. At Las Trancas, 5 Km from Cerro Grande, the Sangre de Toro feature is to be tested with the first drilling in the area for the presence of a large mineralized structure.
  • Vortex Metals Inc. initiated surface geological work at its 12,041 ha Riqueza Marina project in Oaxaca. As the Santa Cruz Tagolaba community granted approval, Vortex can now commence work, including trenching, over an area including the Rhyolite Dome target, where substantial size and coincident gravity and magnetic anomalies along with anomalous copper values are interpreted to reflect a concealed sulfide deposit.

ON MINING

  • Impact Silver Corp. announced its financial and operating results for Q1 2023. At its Royal Mines of Zacualpan mine operations, in Estado de Mexico, 38.7 K tonnes were milled during the period, averaging 162 gpt Ag, to produce 167 K Oz Ag. Reported revenue was $5.1 M, mine operating earning $0.6 M and the net loss $0.6 M, with a working capital of $15.7 M and a cash position of $14.3 M by the end of the period.
  • Guanajuato Silver Company Ltd. announced financial and operating results for Q1 2023. During the period the company produced 458.8 K Oz Ag, 4,413 Oz Au, 0.91 M Lb Pb, 1.15 M Lb Zn (or 938 K Oz AgEq) at El Cubo Mines Complex, Valenciana Mines Complex and San Ignacio mine, in Guanajuato, and Topia mine, in Durango. Revenue was US$17.1 M, with a net loss of US$8.7 M. The All-in sustaining cost (AISC) was $21.83 per AgEq. Infrastructure upgrades to deliver improvement in 2023 include Falcon concentrators at El Cubo and Valenciana, the rehabilitation of the Cata Shaft already completed and the implementation of hydraulic backfilling of tailings at Valenciana.

ON FINANCING

  • Silver Viper Minerals Corp. granted 5.15 M incentive stock options to directors, officers and consultants to purchase up to 5.15 M common shares in the capital of Silver Viper. (La Virginia, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Avino Silver & Gold Mines Ltd. released the results of ten drill holes from below Level 17, the current deepest workings of the Avino mine in Durango. The Avino vein has been drilled to a depth of 1,100 m downdip from the surface outcrop. A total of ten holes in this campaign totalled 3,414 m. Highlighted true width intercepts comprise 2.61 m @ 0.06 gpt Au, 75 gpt Ag, 2.58% Cu; 19.90 m @ 0.02 gpt Au, 30 gpt Ag, 1.29% Cu; 3.00 m @ 0.99 gpt Au, 34 gpt Ag, 0.08% Cu; 35.73 m @ 0.14 gpt Au, 28 gpt Ag, 0.65% Cu; 48.40 m @ 0.08 gpt Au, 45 gpt Ag, 0.55% Cu; 36.00 m @ 0.16 gpt Au, 27 gpt Ag, 0.81% Cu; 1.30 m @ 0.05 gpt Au, 97 gpt Ag, 2.28% Cu. “The changing tenor of the mineralization could be reflecting a transition from epithermal to porphyry-style mineralization”.
  • Heliostar Metals Ltd. reported its first drill results from the Ana Paula project in Guerrero. The first two holes drilled by Heliostar targeted the “High Grade Panel” at the core of Ana Paula. Highlighted core length intervals comprise 118.55 m @ 5.44 gpt Au (including 44.5 m @ 11.0 gpt Au, which include 4.0 m @ 48.5 gpt Au); 101.12 m @ 8.35 gpt Au (including 53.2 m @ 11.0 gpt Au). “the High Grade Panel is approximately 250 metres long by 100 metres high by 60 metres thick… hosted primarily in a polymictic breccia unit, although it extends outward into the surrounding granodiorite and limestone. Gold mineralization is directly associated with the proportion of sulphide minerals in the rock”. Heliostar is re-evaluating the project as a high-grade underground mine.
  • Capitan Mining Inc. provided an exploration update on its Cruz de Plata project in Durango. New interpretation points to the Jesus Maria vein to have a potential strike length of 2.8 km, the Santa Teresa vein of 1.8 km and the San Rafael North vein of 1.3 km before going under cover. The Capitan East gold target has a potential strike of at least 500 m. Seven targets have been recently defined by mapping and prospecting.
  • Prime Mining Corp. reported results from core drilling at the Z-T area on Los Reyes project in Sinaloa. Highlighted true width intervals comprise 11.6 m @ 3.33 gpt Au, 221 gpt Ag (including 1.0 m @ 24.0 gpt Au, 1,385 gpt Ag); 9.8 m @ 1.52 gpt Au, 25 gpt Ag (including 1.5 m @ 7.94 gpt Au, 61 gpt Ag); 4.5 m @ 1.03 gpt Au, 34 gpt Ag in the Tahonitas zone and 13.8 m @ 0.96 gpt Au, 27 gpt Ag; 8.5 m @ 0.84 gpt Au, 14 gpt Ag; 15.9 m @ 0.74 gpt Au, 37 gpt Ag; 8.5 m @ 1.01 gpt Au, 23 gpt Ag at the Zapote South zone. The results are from step out holes to expand mineralization at depth below the Z-T resource pit shell. Prime Mining recently announced a mineral resource estimate containing 1.47 M indicated Oz AuEq averaging 1.68 gpt and 0.73 M inferred Oz AuEq averaging 1.26 gpt.
  • Discovery Silver Corp. released results from feasibility study drill holes on its Cordero project in Chihuahua. The reserve expansion drilling highlighted core length intercepts comprise 41 m @ 63 gpt Ag, 0.09 gpt Au, 1.2% Pb, 2.7% Zn; 8 m @ 195 gpt Ag, 0.23 gpt Au, 2.2% Pb, 4.1% Zn; 37 m @ 58 gpt Ag, 0.05 gpt Au, 0.8% Pb, 1.5% Zn; 104 m @ 37 gpt Ag; 0.04 gpt Au, 0.3% Pb, 1.1% Zn; 51 m @ 51 gpt Ag, 0.06 gpt Au, 0.7% Pb, 0.9% Zn. The results are from 23 drill holes focused on reserve upgrade and expansion in the South Corridor and reserve expansion drilling on the margins of the Pozo de Plata zone in the North Corridor. To date 49,700 m of drilling in 156 holes have been completed as part of the feasibility study. A 9,000 m property wide drilling program is planned for the second half of the year.
  • GR Silver Mining Ltd. released results from two step-out holes outside of the mineral resource boundary at San Marcial, within the Plomosas project in Sinaloa. Highlighted core length results comprise 18.8 m @ 145 gpt Ag, 0.04 gpt Au, 0.1% Pb, 0.1% Zn (including 4.2 m @ 466 gpt Ag, 0.08 gpt Au, 0.1% Pb, 0.3% Zn); 11.3 m @ 584 gpt Ag, 0.05 gpt Au, 0.3% Pb, 0.6 % Zn (including 5.5 m @ 1,084 gpt Ag, 0.07 gpt Au, 0.6% Pb, 1.0% Zn). These holes targeted the extension of the SE Area discovery, 250 m to the southeast.

ON DEALS AND CORPORATE ISSUES             

  • Tarachi Gold Corp. closed the transaction with Compañía Minera de Atocha S.A. de C.V. for the sale of the Magistral project in Durango. Tarachi expects to receive cash payments totalling US$5.7 M from Atocha, of which US$3.05 M have already been received. The balance is to be paid as follows: US$500 K when Atocha concludes negotiations with land owner Ejido Magistral, or after 12 months; US$500 K on November 2023; US$500 K when 50% of the tailings have been mined, sold or processed, or after the first calendar year of operation at the project; US$500 K when 100% of the Magistral tailings have been mined, sold or processed, or after the second calendar year of operation and “The amount of value-added tax currently owing as that tax benefit is realized by Atocha during operations and product sales from the Magistral Project will be paid to Tarachi”, estimated at US$650 K.
  • Silver Dollar Resources Inc. completed the exercise of its option and now hold 100% interest in the 4,646 ha La Joya project, located in Durango. For gaining 80% interest the company paid First Majestic Silver a total of $700 K plus annual holding costs, incurred in $1 M exploration expenditures and issued First Majestic 19.9% (5.15 M shares) of the then issued and outstanding shares of the company. To obtain the remaining 20% Silver Dollar issued 2 M shares, 5% of the then issued and outstanding shares of the company, to First Majestic, which now owns 18.2% of the outstanding shares of the company.    

ON SOCIAL RESPONSIBILITY

  • Torex Gold Resources Inc. released its 2022 Responsible Gold Mining Report, the annual disclosure of its environmental, Social and Governance (ESG) performance. Among other accomplishments, the company achieved 10 M hours worked without a lost-time injury, ending 2022 with a lost-time injury frequency of 0.28 per million hours worked by its employees and contractors. Almost 60% of the water usage is recycled, 44% less cyanide has been consumed than in 2021. Mexican employees are 99% of the work force, and 60% from Guerrero, where the operations are carried out.

On the image below: Mine dumps in a copper project of the Sonoran Desert. Picture by Jorge Cirett.