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

Hydrothermal breccia

By Miguel A Heredia

During the second week of the year (February 08th to February 14th, 2021), at least 28 press releases were announced by companies working in Mexico and 11 news published by the media, with nine disclosing deals and corporate issues, six announcing financial rounds, six reporting on resources and development of their mine operations, six commenting on Mexican issues, five informing on exploration results, five discussing social issues, and two communicating production and financial results.  ON MEXICO ISSUES, Environmental, social and corporate governance (ESG) criteria are a key factor in Accendo Banco’s investments in Mexico’s mining sector, according to its CEO, Javier Reyes. Mining in Mexico registered a 19.5% rebound during October, 2020, according to the Monthly Indicator of Industrial Activity by Federal Entity (IMAIEF) released by the Institute National Statistics and Geography (INEGI). Tatiana Clouthier, head of the Secretariat of Economy declared that mining in Mexico must become a sustainable activity that prioritizes three issues: economic, human and nature. The energy policies that the federal government is following are already affecting the development of projects for the self-supply of energy by the mining sector. Experts detailed the main challenges that the Mexican mining sector will face in 2021, the year in which the industry is expected to play a leading role in the economic reactivation after confinements. Almost a year of delay accumulates the USD $60M of Chinese investment to construct the industrial park at Guadalupe, Zacatecas.   ON EXPLORATION, In Sonora, Canuc commenced a drill program at its San Javier project, Carlyle and Riverside initiated a phase one drilling program at its Cecilia project, Tocvan and Colibri reported drill results from its El Pilar project, and Minaurum released results from its phase II drilling program conducted at its Alamo Silver project.   ON MINING, Equinox provided 2021 guidance and outlined growth and investment plan (Los Filos mine, Guerrero). GoGold reported Q4, 2020 production and financial results from its Parral Tailings project in Chihuahua. ON FINANCING, Bacanora announced that 106,995,885 New Ordinary Shares were admitted to trading on London Stock Exchange market (Sonora Lithium project, Sonora). Silver Tiger announced that it entered into a CAD $20M bought deal financing (El Tigre, Sonora). Comet raised $1M in strategic investor placement (Santa Teresa project, Baja California). Orogen announced a private placement for gross proceeds of $2.7M (Ermitaño property, Sonora). Prospero Silver announced a consolidation of its common shares (Pachuca SE property, Hidalgo). SilverCrest entered into a bought deal financing agreement for aggregate gross proceeds of USD $120M (Las Chispas project, Sonora).  ON RESOURCES AND DEVELOPMENT, Bacanora commenced initial site activities at its Sonora Lithium project in Sonora. Excellon provided an update on ongoing exploration at its Platosa mine in Durango. GR Silver released underground and surface drilling results from its Plomosas project in Sinaloa. Newmont reported 2020 mineral reserves and resources for its Peñasquito mine in Zacatecas. Orla filed updated FS on its Camino Rojo Oxide project in Zacatecas. Southern Silver released drill results from its Cerro Las Minitas project in Durango. ON DEALS AND CORPORATE ISSUES, Carlyle announced that it has now met its first-year exploration commitments of its option agreement with Riverside Resources to acquire 100% of the Cecilia Gold-Silver project. Fabled granted an aggregate of 350K stock options to certain consultants, to acquire one common share of Fabled at an exercise price of $0.22 per common share until September 1, 2021 (Santa Maria project, Chihuahua). Fortuna announced management changes (San Jose mine, Oaxaca). Gold Resource announced the appointment of a new member to its Board of Directors (Arista mine, Oaxaca). Gold79announced the appointment of a new member to its Board of Directors and granted him with 500K common shares at a price of $0.10 per share and expire on February 12, 2031 (Taviche project, Oaxaca). Orogen announced that its current President and Chief Executive Officer has been appointed to the Board of Directors (Ermitaño project, Sonora). Premier announced that two independent adviser firms have recommended that holders of Premier´s common shares and options approve the proposed acquisition of Equinox (Mercedes mine, Sonora). Tarachi Gold signed a purchase agreement with Manto Resources to acquire the Magistral del Oro mill and tailings project in Durango. Vizsla announced it will change its name to Vizsla Silver Corp (Panuco project, Sinaloa).  ON SOCIAL RESPONSIBILITY, Coanzamex (GoGold) supported the Municipal Shelter of Parral, Chihuahua with blankets. Fresnillo plc organized literary caravan and delivered books to children from rural communities. Peñoles signed an alliance with the UNAM Foundation so that medical fellows serve the communities near its operating units in Durango, State of Mexico, Guerrero and Zacatecas. Peñoles encourages the presence of women in the areas of science, innovation and technological development. Santa Elena Mine (First Majestic) in connection with the Sonora A.C. Mining Cluster are carrying out a support program for merchants in the Banámichi and Río Sonora region.

ON MEXICO ISSUES

  • Environmental, social and corporate governance (ESG) criteria are a key factor in Accendo Banco’s investments in Mexico’s mining sector, according to its CEO, Javier Reyes. Investment deals recently advanced by the bank include a proposed USD $12M loan to finance construction of Telson Mining’s Tahuehueto gold mine in Durango. Candelaria Mining also signed a USD $9M loan agreement with Accendo in June 2020 for the construction of its Pinos gold project in Zacatecas. Lastly, Accendo signed a strategic alliance with Vancouver-based Empress Royalty in August last year. The agreement aims to acquire royalties, cash flows and other investments in Mexico’s mining sector.
  • Mining in Mexico, registered a 19.5% rebound during October, 2020 according to the Monthly Indicator of Industrial Activity by Federal Entity (IMAIEF), released by the Institute National Statistics and Geography (INEGI).
  • Tatiana Clouthier, head of the Secretariat of Economy declared that mining in Mexico must become a sustainable activity that prioritizes three issues: economic, human and nature. On the other hand, Clouthier highlighted the work that mining companies of all levels have done to accelerate the economic reactivation of the country. “The Gross Domestic Product (GDP) that is generated through mining is about 3.2% and we are pleased to see that these numbers can continue to move in favor of the economy and Mexican families,” she said. “In the Ministry of Economy we have already invited large, medium and small companies and associations that are linked to this issue to be able to find solutions, to be able, within the framework of the law, to activate what we have to activate for this task it can be managed better and it can yield better results in favor of our country”, she assured.
  • The energy policies that the federal government is following are already affecting the development of projects for the self-supply of energy by the mining sector. According to data from the Mexico Mining Chamber (CAMIMEX), electricity for this industry is 33% and up to 350% more expensive compared to other countries, which increases its production costs. That is why the mining companies have decided to invest and develop electricity generation projects, which range from combined cycle plants to solar or wind farms. Despite this, many of these plans have been affected by current policies on energy and the action of regulatory bodies, such as the Energy Regulatory Commission (CRE), which reduced the granting of permits to a minimum. President of CAMIMEX assured in recent days that half of the energy consumed by the mining industry is under the self-supply model.
  • Experts detailed the main challenges that the Mexican mining sector will face in 2021, the year in which the industry is expected to play a leading role in the economic reactivation after confinements. The main problems for the sector are the current health complications associated with the COVID-19 pandemic, a series of directly or indirectly legislative proposals with potential negative impacts on the mining sector such as the direct initiatives to try to raise taxes at the state of federal level or indirect initiatives as the elimination of the outsourcing or initiatives of the electricity industry. Deputies of Mexico received in January a proposal from a legislator of the ruling party Morena aimed at reviewing the fees paid for mining concessions. It proposed replacing per hectare fees with potentially much higher charges linked to production. Another problem is the “profound ignorance” of the importance of the mining industry.
  • Almost a year of delay accumulates the USD $60M of Chinese investment to construct the industrial park at Guadalupe, Zacatecas. This delay has been caused by the COVID-19 pandemic.   

ON EXPLORATION

  • Canuc Resources Corporation, commenced a drill program at its San Javier project. The program will be focused on testing geophysical anomalies and mineralized breccia and stockwork zones as reported previously.
  • Carlyle Commodities Corp. and Riverside Resources Inc., initiated a six drill holes, phase one program at its Cecilia project designed to test down to roughly 250m in depth over the Cerro Magallanes rhyolitic dome. The drill program will commence to test the San Jose structure where sampling returned values up to 48.3 g/t Au over 0.75m at surface.
  • Tocvan Ventures Corp. and Colibri Resource Corporation reported drill results from its phase one drilling program performed at its El Pilar project in Sonora, which consisted of nine RC holes for a total of 1,505m. Significant drill intercepts were encountered in hole JES-20-32 with 1.6 g/t Au over 94.6m, including 10.8 g/t Au and 38 g/t Ag over 9.2m; hole JES-20-33 with 1.1 g/t Au over 41.2m, including 6 g/t Au and 12 g/t Ag over 3.1m; and hole JES-20-36 with 2.5 g/t Au and 73 g/t Ag over 24.4m, including 6.3 g/t Au and 192 g/t Ag over 9.2m, including 33.4 g/t Au and 1,090 g/t Ag over 1.5m.
  • Minaurum Gold Inc., released results from its phase II drilling program conducted at its Alamo Silver project. “Drilling at the Europa-Guadalupe target outlined a prospective south-west (“SW”) plunging silver shoot along with the potential for additional high-grade mineralization to the north and south of the area drilled. At the Promontorio target, drilling returned high-grade mineralization in excess of 100m below historical workings, indicating the potential for two SW-plunging silver shoots”. At Europa-Guadalupe Zone, Significant drill intercepts were encountered in hole AL20-054 with 342 g/t Ag, 0.76% Cu, and 1% Zn over 3.85m, including 1,185 g/t Ag, 2.19% Cu, and 1.2% Zn over 0.8m; and hole AL20-050 with 196 g/t Ag, 0.26% Cu, 0.35% Pb, and 1.1% Zn over 3.25m, including 784 g/t Ag, 1.05% Cu, and 2.5% Zn over 0.55m. At Promontorio Zone, hole AL20-064 intersected 528 g/t Ag, 0.8 g/t Au, 0.83% Cu, 2.4% Pb, and 1.5% Zn over 3.7m, including 1,203 g/t Ag, 2.45 g/t Au, 1.4% Cu, 5.1% Pb, and 2.8% Zn over 1.05m; and hole AL20-069 with 161 g/t Ag, 0.5 g/t Au, 0.24% Cu, 2.15% Pb, and 5.9% Zn over 4m, including 327 g/t Ag, 0.9 g/t Au, 0.23% Cu, 2.5% Pb, and 6.6% Zn over 1m. At San Jose Zone, hole AL20-066 encountered 314 g/t Ag, 0.27% Cu, 0.2% Pb, and 0.2% Zn over 4.45m, and hole AL20-075 with 460 g/t Ag, 0.15% Cu, 0.5% Pb, and 0.85% Zn over 2.15m. At Travesia Zone, hole AL20-077 intersected  210 g/t Ag, 0.59% Cu, 1.3% Pb, and 1.3% Zn over 4.4m, including 355 g/t Ag, 0.7 g/t Au, 1.02% Cu, 4.6% Pb, and 3.2% Zn over 0.9m.

ON MINING

  • Equinox Gold Corp., provided 2021 guidance and outlined growth and investment plan. It expects to produce 170K-190K Oz Au from its Los Filos mine in Guerrero at cash and AISC of USD $1,125-1,200 and USD $1,330-1,390 respectively. The company has planned a total sustaining and non-sustaining capital spend of USD $133M for the year.
  • GoGold Resources Inc., reported Q4, 2020 production and financial results from its Parral Tailings project in Chihuahua. The company produced 298.6KOz Ag, 3,632 Oz Au and 280K Lb Cu (614.15K Oz AgEq) at cash and AISC of USD $12.27 and USD $15.19 per Oz Ag sold. GoGold reported revenue of USD $14,078M, a net income of USD $4.23M, and a cash flow from operation of USD $5.86M.  

ON FINANCING

  • Bacanora Lithium plc., announced that 106,995,885 New Ordinary Shares were admitted to trading on the London Stock Exchange market (Sonora Lithium project, Sonora).
  • Silver Tiger Metals Inc., announced that it entered into a CAD $20M bought deal financing with Sprott Capital Partners LP.  Net proceeds will be used to fund continued exploration at its El Tigre project in Sonora, as well as for general working capital and business development purposes.
  • Comet Resources Ltd., announced that it raised $1M in strategic investor placement. Part of the raised funds will be used to support exploration activities at its (Santa Teresa project in Baja California.
  • Orogen Royalties Inc., announced a private placement for gross proceeds of $2.7M (Ermitaño property, Sonora).
  • Prospero Silver Corp., announced a consolidation of its common shares on the basis of one new post-consolidation common share for every three pre-consolidation common shares effective as of February 11, 2021.  There will be no name change or trading symbol change in conjunction with the consolidation (Pachuca SE property, Hidalgo).
  • SilverCrest Metals Inc., entered into a bought deal financing agreement for aggregate gross proceeds of USD $120M. Net proceeds of the offering will be used to expand resources and reserves at its Las Chispas project in Sonora through further drilling, to optimize the mine and processing plant design, to explore regional targets, and for general working capital purposes. 

ON RESOURCES AND DEVELOPMENT

  • Bacanora Lithium plc., commenced initial site activities at its Sonora Lithium project in Sonora. Bacanora engaged a local specialist ecological service company to rescue and remove surface vegetation and topsoil in the area proposed for the construction of the processing plant. The company is also upgrading the main access road for providing access to heavy equipment to commence the bulk site earthworks later in the year.
  • Excellon Resources Inc., provided an update on ongoing exploration at its Platosa mine in Durango. The company is drilling regional targets such as Jaboncillo and the PDN areas, as well as drilling the Platosa extensions and Platosa Underground to support resource definition and expansion. At Jaboncillo zone, located 11 km north of Platosa mine, Excellon identified in a previous drilling campaign a 1.2km length gossans mineralization.  The current drilling program is targeting the source of these gossans and the existence of massive sulphides. At PDN zone, located 2 km north of Platosa mine, it is testing a large 800m by 60m target generated with multiple sets of geophysical data, surface mapping and sampling. This target is interpreted as a deeper skarn related to the Rincon del Caido  skarn discovered in 2012 where a previous drill intercept encountered 132 g/t Ag, 3.1% Pb, 1.7% Zn, and 0.075 g/t Au (278 g/t AgEq) over 55.5m. At the 10-20 target, the company has been conducting drilling surface to add mineralization over approximately 300m of strike with a vertical extent of 30-40m. This zone has potential to significantly increase the current 800m by 600m mineralized footprint of the Platosa mine.  At Platosa mine, Excellon is conducting underground drilling to define mineralization ahead of mine development and add mineralized inventory in areas not adequately tested by surface drilling. This underground drilling program follows up on previous drilling of the Pierna and NE-1 mantos and depth extensions of the 623 and NE-1S mantos.
  • GR Silver Mining Ltd., released underground and surface drilling results from its Plomosas project in Sinaloa. Significant mineralization was encountered in hole PLI-20-05 with 2.63 g/t Au, 39 g/t Ag, 0.2% Cu, 0.2% Pb, and 0.1% Zn over 4m, including 8.95 g/t Au, 136 g/t Ag,0.4% Cu,  0.6% Pb, and 0.1% Zn (1,101 g/t AgEq) over 1.0m, and other deeper intersection of 2.77 g/t Au, 25 g/t Ag, 0.2% Cu, 0.2% Pb, and 0.6% Zn over 9.2m, including 19.95 g/t Au, 227 g/t Ag, 1% Cu, 1.3% Pb, and 4.7% Zn (2,507 g/t AgEq) over 0.20m; and hole PLI17-32 with 1.37 g/t Au, 68 g/t Ag, 0.1% Cu, 0.4% Pb, and 0.1% Zn (245 g/t AgEq) over 10.6m. “The underground drilling program is targeting high-grade Ag-Au epithermal mineralization and bulk tonnage-style polymetallic mineralization in the Plomosas Mine Area, with the objective to delineate high margin precious and base metals mineralization for planned resource estimation”.
  • Newmont Corporation reported 2020 mineral reserves and resources for its Peñasquito and Noche Buena mines. Figures are shown in the tables below:

(Resources are reported exclusive of reserves)

  • Orla Mining Ltd., filed updated FS on its Camino Rojo Oxide project in Zacatecas. Highlights include a total ore to leach pad of 67.4M tonnes of 0.73 g/t Au and 14 g/t Ag for a total of 1.59M Oz Au and 31.5M Oz Ag at metallurgical recoveries of 62% and 20% respectively to recover 980K Oz Au and 6.19M Oz Ag. The mine life of Camino Rojo has been estimated in 10.4 years with a throughput rate of 18,000 tonnes per day for an annual production of 94K Oz Au, at a cash and AISC cost of USD $490 and USD $543 per Oz Au respectively. The FS reported a Pre-Tax and NVP (5% discount rate)  of USD $668M, Pre-Tax IRR of 82%, an After-Tax and NVP (5% discount rate) of USD $542M,and an After-Tax IRR of %62%, for a payback time of 1.5 years.
  • Southern Silver Exploration Corp., released drill results from its Cerro Las Minitas project in Durango. The company intersected bonanza grades at La Bocona Chimney in hole 20CLM-131 with 1,072 g/t Ag, 18.8% Pb, and 7.5% Zn (2,040 g/t AgEq or 51.7% ZnEq) over a true width (TW) of 8m, which includes subintervals of 3,180 g/t Ag, 58.8% Pb, and 2.3% Zn over a TW of 0.6m, and 2,340 g/t Ag, 35.9% Pb, and 1.6% Zn over a TW of 0.8m. Additional mineralized intervals intersected further down-hole include 121 g/t Ag, 2.5% Pb, and 2.5% Zn (311 g/t AgEq or 7.9% ZnEq) over a TW of 8.5m, including 413 g/t Ag, 8.7% Pb, and 9.3% Zn (1,103 g/t AgEq or 28% ZnEq) over a TW of 1.6m, including 59 g/t Ag, 0.6 g/t Au, an 3.7% Cu (489 g/t AgEq) over a TW of 0.5m. Additional assays results were also received from the Muralla and the South Skarn targets located 500m away of the Mina La Bocona. Significant drill intercepts were encountered in hole 20CLM-134 with 205 g/t Ag, 0.16 g/t Au, 4% Pb, and 0.9% Zn (377 g/t AgEq or 9.5% ZnEq) over a TW of 4.1m, including 575 g/t Ag, 0.05 g/t Au, 9.9% Pb, and 2.2% Zn (972 g/t AgEq or 24.7% ZnEq) over a TW of 0.6m in the Muralla target; hole 20CLM-126 with 95 g/t Ag, 0.7% Pb, and 1.2% Zn (174 g/t AgEq or 4.4% ZnEq), including 398 g/t Ag, 0.16 g/t Au, 2.7% Pb, and 4% Zn (679 g/t AgEq or 17.2% ZnEq) over a TW of 0.7min the South Target Zone, and hole 20CLM-130 with 327 g/t Ag, 5.6% Pb, and 11.5% Zn (960 g/t AgEq or 24.4% ZnEq) over a TW of 1m in the South Target Zone.

ON DEALS AND CORPORATE ISSUES

  • Carlyle Commodities Corp., announced that it has now met its first-year exploration commitments of its Option Agreement with Riverside Resources to acquire 100% of the Cecilia Gold-Silver project, by having advanced at least CAD $750K for exploration expenditures.
  • Fabled Silver Gold Corp., granted an aggregate of 350K stock options to certain consultants, to acquire one common share of Fabled at an exercise price of $0.22 per common share until September 1, 2021 (Santa Maria project, Chihuahua).
  • Fortuna Silver Mines Inc., announced the resignation of its Director and Chair of the Board, and the appointment of its replacement (San Jose mine, Oaxaca).
  • Gold Resource Corporation announced the appointment of a new member to its Board of Directors (Arista mine, Oaxaca).
  • Gold79 Mines Ltd., announced the appointment of a new member to its Board of Directors and granted him 500K common shares at a price of $0.10 per share and expires on February 12, 2031 (Taviche project, Oaxaca).
  • Orogen Royalties Inc., announced that its current President and Chief Executive Officer has been appointed to the Board of Directors (Ermitaño project, Sonora).
  • Premier Gold Mines Limited announced that two independent adviser firms have recommended that holders of Premier´s common shares and options approve the proposed acquisition of Equinox Gold Corp. (Mercedes mine, Sonora). 
  • Tarachi Gold Corp., signed a purchase agreement with Manto Resources SA de CV to acquire the Magistral del Oro mill and tailings project in Durango.  Magistral project consists of a 1,000 tons per day (TPD) Merrill-Crow tailings reprocessing  plant and tailing disposal facility, and access to an estimated 1.3M tonnes of tailings with a historic average grade of between 2.06 g/t Au and 2.11 g/t Au. In order to acquire the property, Tarachi has to issue 4M of its common shares, grant Manto with a 15% net profits royalty on the estimated 1.3M tonnes of tailings material expected to be processed and reimburse Manto for USD $1,179,500 of cash outlays, and will satisfy certain obligations of Manto by paying a total of USD $1,111,000 plus any Mexican value add tax (IVA) and issuing 1,685,916 common shares within 90 days of closing. Manto will be entitled to the following staged bonus payments: an additional 4M common shares 60 days after the closing date, 4M common shares 180 days after the closing date, 4M of common shares 365 days after the closing date, USD $500K in cash following 6 months of commercial production at Magistral, USD $500K in cash following 12 months of commercial production at Magistral, upon the company earning USD $15M in revenue from Magistral, the company will pay Manto USD $1M. Finally, a finder´s fee of 1M common shares will be issued to Spirit Exploration Corp.
  • Vizsla Resources Corp., announced it will change its name to Vizsla Silver Corp. The name change is expected to be effective on February 9, 2021 (Panuco project, Sinaloa). 

ON SOCIAL RESPONSIBILITY

  • Coanzamex (GoGold Resources Inc.) delivered blankets to the Parral Municipality Shelter. Major of Parral thanked the spirit of solidarity that has characterized the mining company that has operated in Parral, Chihuahua for several years.
  • Fresnillo plc organized literary caravan and delivered 10,000 books to children and adolescents from 23 communities in Caborca, Sonora.  It should be mentioned that Fresnillo plc, in alliance with the IBBY México organization, encourages children’s reading through the “Picando Letras” program, which has been implemented for some time more than 8 years and, to date, approximately more than 2,500 infants and adolescents have participated in the various actions.
  • Industrias Peñoles SAB de CV signed an alliance with the UNAM Foundation so that medical fellows serve the communities near its operating units Durango, State of Mexico, Guerrero and Zacatecas. For more than 10 years, Peñoles has carried out Health Days to the communities near its operations, to provide free medical care to its neighbors. To give continuity to preventive health programs among the population with fewer resources, Peñoles ratified an agreement with the UNAM Foundation whereby eight social service providers of the University will provide medical care to the communities surrounding the Velardeña, Sabinas, Tizapa, and Capela mines.
  • Industrias Peñoles SAB de CV encourages the presence of women in the areas of science, innovation and technological development. Its General Director, Rafael Rebollar, points out that, fortunately, more women are joining the different mining processes, contributing their talent and skills. The Central Laboratory and the Center for Research and Technological Development (CIDT) of Peñoles stand out, with 35 women who carry out functions key to mining and metallurgical processes. Thus, Peñoles reiterates its commitment to society by integrating more women scientists in the industry, through programs that expand their knowledge and allow them to innovate in the processes, which contributes to strengthening the activity mining and make it more sustainable.
  • Santa Elena Mine (First Majestic) in connection with the Sonora A.C. Mining Cluster are carrying out a support program for local merchants in the Banámichi and Río Sonora region. Through a workshop, they seek to provide the necessary tools to promote the economic reactivation of businesses and overcome the barriers of the pandemic using new digital marketing tool to offer its products and services. This training was offered in virtual mode where the last session was completed in person, ending with the delivery of recognitions to the participants.

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

On the picture above, a quartz hydrothermal breccia in a low sulphidation epithermal system in a prospect in Durango, Mexico.  Photo by Miguel A Heredia., Mexico.

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

Rich-Mn jasperoid

By Miguel A Heredia

During the forty one week of the year (October 5th to October 11th, 2020), at least 27 press releases were announced by companies working in Mexico and 10 news published by the media, with seven informing on exploration results, seven announcing financial rounds, seven commenting on Mexican issues, six disclosing deals and corporate issues, six communicating production and financial results, three discussing social issues, and one reporting on resources and development of their mine operations  ON MEXICO ISSUES, The Mining Chamber of Mexico (CAMIMEX) and other organizations in the mining sector urged the federal government to maintain the operations of the Mining Fund, which has counted, until now, with an amount of MXP $22,000M (about $1B). The fate of the Fund for the Development of Mining Production Zones (Mining Fund), which had drastically changed its distribution in the last two years, is now more uncertain. Alvaro Burgos Barrera, the State Secretary of Economic Development of Guerrero, stated that Mining fund distributed MXP $300M for urban infrastructure in seven municipalities of the state, but now this support won´t arrive anymore at the entity after the disappearance of such program, at the initiative of the current federal government. Mining companies operating in Mexico demanded to guarantee the resources of the Mining Fund to the mining communities. The mining sector of Zimapan, Hidalgo spoke against the extinction of the Mining Fund. Mexico loses shine to attract mining investment. President Andrés Manuel López Obrador plans to take a decision on how to manage Mexico’s lithium resources soon.  ON EXPLORATION, In Sonora, Riverside reported assay results from 55 channel samples and 181 soil samples taken at its Cuarentas property and announced it is preparing a drill program. In Chihuahua, Kootenay released drilling results from its Columba project and announced the discovery of a broad area of Ag mineralization.  In Sinaloa, Brigadier reported exploration results from the El Placer vein system within its Picachos project, Prismo received environmental permit from SEMARNAT to drill 5 holes at its Palos Verdes project, and Vizsla reported drill results from its Panuco property.  In Zacatecas, Advance Gold reported drill results from two holes collared at its Tabasquena project. In Guanajuato, VanGold released assays from underground channel sampling carried out at its Pinguico property.  ON MINING, Aura reported preliminary Q3, 2020 production results from its Aranzazu mine in Zacatecas. GoGold reported Q3, 2020 production activities from its Parral Tailings project in Chihuahua. Endeavour announced Q3, 2020 production results from their Mexican operations. Great Panther released production results from their Topia mine in Durango and Guanajuato Mine Complex in Guanajuato for the period Q3, 2020. Hecla announced production results from its San Sebastian mine in Durango for the period Q3, 2020.Torex reported Q3, 2020 production results from its El Limon-Guajes mine complex in Guerrero. ON FINANCING, Almadex announced a proposed non-brokered private placement for gross proceeds of approximately $1.35M (El Chato project, Puebla). Barksdale granted stock options to its directors, employees and consultants (San Javier project, Sonora). Comet raised $1M under its share purchase plane with approximately 180 shareholders participating (Santa Teresa project, Baja California). Golden Tag announced that it has initiated the process to have its common shares trading on the OTCQB Venture Market and the repricing of 9.9M incentive stock options. Inomin closed a non-brokered private placement for gross proceeds of $400,500 (La Gitana project, Oaxaca). Santacruzclosed the first tranche of its previously announced non-brokered private placement for gross proceeds of $7,629,279.02. Mexus announced that it has completed a 1 for 20 reverse split of its stock (Santa Elena mine, Sonora).   ON RESOURCES AND DEVELOPMENT, Mexus announced that its ball mill gravity gold recovery system is now operational, allowing the company to run high grade material from the Julio quartz vein at its Santa Elena mine located in Caborca, Sonora.    ON DEALS AND CORPORATE ISSUES, Avino announced that it achieved a successful resolution to the strike at its Avino mine in Durango. Gold Resource announced its intent to spin-off in two separate companies its Nevada and Oaxaca Mining Unit (Arista Mine, Oaxaca).  Gray Rock announced the change of its name to Silver Wolf Exploration Ltd (Ana Maria project, Durango). Impact Silver executed a letter of intent to option the Nuevo Taxco project in Guerrero to Road Oak Mining Corp. Osisko announced spin-out of mining assets and creation of a premier North American Gold Development Company (San Antonio project, Sonora).  Silver Dollar reported that it is evaluating to transfer its Canadian exploration projects to a new subsidiary with the aim of position the company to be focus on the exploration and development of its advanced stage la Joya property in Durango. ON SOCIAL RESPONSIBILITY, Minera Cuzcatlán (Fortuna Silver) fulfilled an agreement with the Oaxaca community to extend the hours of attention to patients at the Health Center of the Municipal Headquarters.  In the Municipality of Guadalupe y Calvo, Chihuahua, 11 school domes were inaugurated, of which 6 were made with resources from the Mining Fund and five in coordination with the Municipality and the State. Industrias Peñoles SAB de CV faces firmly the new challenges posed by the pandemic.

ON MEXICO ISSUES

  • The Mining Chamber of Mexico (CAMIMEX) and other organizations in the sector urged the federal government to maintain the operations of the Mining Fund, which has counted, until now, with an amount of MXP $22,000M (about $1.04B),  with an impact on 690 communities. The Mining Fund was created with the objective of benefiting the populations where the resources were generated.
  • The fate of the Fund for the Development of Mining Production Zones (Mining Fund), which had drastically changed its distribution in the last two years, is now more uncertain. The resources collected between 2014 and 2018 have been used for the installation and maintenance of public lighting, sanitary landfills, water treatment plants, drainage works. Public jets and environmental projects such as reforestation, etc. In 2019, it was decreed that these resources be distributed in a general way in the country through the Ministry of Public Education (SEP), which reduces the possibility of continuing with the development of mining communities. It goes against the principles by which it was generated: to distribute the Mining Fund among mining states and municipalities to promote high-impact infrastructure works.
  • Alvaro Burgos Barrera, the State Secretary of Economic Development of Guerrero, stated that Mining fund distributed MXP $300M for urban infrastructure in seven municipalities, but now this support won´t arrive anymore at the entity after the disappearance of such program, at the initiative of the current federal government.
  • Mining companies operating in Mexico demanded to guarantee the resources of the Mining Fund to the mining communities claiming that is was created with the spirit of benefiting the populations where the resources are generated. The Mexican Mining Chamber (CAMIMEX) asked the federal government to guarantee the application of resources from the Fund for the Development of Mining Production Zones for the benefit of the more than 690 mining communities in the country located in 212 municipalities in 24 states of the Mexican Republic. That is the commitment 27 made by President Andrés Manuel López Obrador during his protest, which states: “The tax charged to companies for the extraction of the mineral will be transferred to the mining communities.”
  • The mining sector of Zimapan, Hidalgo spoke against the extinction of the Mining Fund. The federal initiative to disappear 109 trusts with an economic sum of almost MXP $68.5 would cause Hidalgo to stop receiving part of those funds, in different lines, including the one focused on Science and Technology as well as the extractive mineral industry. One of the first impacts would be the cancellation of economic resources for the urban infrastructure of the municipality.
  • Mexico loses shine to attract mining investment. After disagreements between the federal government and the mining industry, last year Mexico fell nine places in investment attractiveness for the mining industry, going from 29th place in 2018 to 38th in 2019. The federal government has been clear that no mining concessions will be granted during this administration. President Andrés Manuel López Obrador has declared that 40 percent of the national territory was concessioned and it is about stopping them “because with what has been granted, it is enough for millions of years.” Karen Flores, general director of the Mining Chamber of Mexico (CAMIMEX), refuted this statement and points out that 24 thousand 66 mining concession titles are in force in Mexico, representing 16.83 million hectares, equivalent to 8.59 percent of the national territory, for which is a myth to affirm that practically the entire national territory is concessioned to mining. At least 84 projects were postponed in 2019 due to different factors that affect their competitiveness, such as the price of metals, a higher tax burden, delays or rejections of permits, and uncertainty regarding possible changes in existing regulations, as well as in mining public policies, according to CAMIMEX.
  • President Andrés Manuel López Obrador plans to take a decision on how to manage Mexico’s lithium resources soon. As is known, the government considers nationalizing the metal for batteries, whose demand is expected to increase in the coming decades to meet the growing manufacture of electric vehicles. What will be analyzed is to see if the country will opt for a total nationalization or to count with stricter controls on concessions, since all minerals belong to the State under Mexican law. While Mexico is not yet a lithium-producing country, this is expected to change in 2023 when project production begins in Sonora. Sonora is home to one of the largest lithium deposits in the world.

ON EXPLORATION

  • Riverside Resources Inc., reported assay results from 55 channel samples and 181 soil samples taken at its Cuarentas property in Sonora and announced it is preparing a drill program to test some outlined targets. Highlights of the channel sampling include 9.1 g/t Au over 3.4m, including 32.9 g/t Au over 0.8m; 21.7 g/t Au over 1.6m; and 6.3 g/t Au over 1.2m. The soil program was done using a grid of 50 meter spaced lines and 25 meter spacing between samples. The soil sampling has defined a continuous 550 m long high-grade gold-in-soil anomaly which merges the Santa Rosalia and Santa Rosalia Sur as Centro de Rosalia and cumulates more than 1.7 km with higher-grade gold mineralization. Highlights include results of up to 0.9 g/t Au.
  • Kootenay Silver Inc., released drilling results from the J-Z zone within its Columba project in Chihuahua, and announced the discovery of a broad area of at least 320m long, 460m deep, and an average width of 60m with high grade Ag mineralization in hydrothermal breccias.  The mineralized system is open laterally on strike and at depth. Significant drill intercepts were encountered in hole CDH-20-061 with 43 g/t Ag over 30.85m, including 164 g/t Ag over 1m and 63 g/t Ag over 8m, as well as 54 g/t Ag over 7.85m, including 144 g/t Ag over 2m; hole CDH-20-062 with 93 g/t Ag over 11.6m including 115 g/t Ag over 8.3m and including 161 g/t Ag over 1m; hole CDH-20-063 with 91 g/t Ag over 9m, including 187 g/t Ag over 2.49m, including 762 g/t Ag over 0.49m; hole CDH-20-065 with 106 g/t Ag over 7m; hole 69 g/t Ag over 25.5m, including 154 g/t Ag over 9m, including 773 hg/t Ag over 1.5m; hole CDH-20-030 with 76 g/t Ag over 8.9m, including 173 g/t Ag over 3.3m, as well as 200 g/t Ag over 25.85m, including 415 g/t Ag over 11.15m, including 721 g(t Ag over 4.07m, and including 982 g/t Ag over 1.9m; and hole CDH-20-060 with 132 g/t Ag over 64m, including 226 g/t Ag over 9m, including 1,025 g/t Ag over  1m, as well as 229 g/t Ag over 22m, including 608 g/t Ag over 5m, including 1,160 g/t Ag over 1m.  
  • Brigadier Gold Limited, reported exploration results from the El Placer vein system within its Picachos project in Sinaloa. This vein system has been traced now for at least 4km along strike and comprises multiple parallel veins over a trend width ranging from 60 to 160 metres. Sample assay highlights include 7.4 g/t Au over 3.2m; 12.8 g/t Au, 54 g/t Ag, 0.1% Cu, 7.7% Pb, and 6.73% Zn over 0.5m; and 101 g/t Ag, 0.3% Cu, 2% Pb, and 11.6% Zn over 1m.
  • Prismo Metals Inc., received environmental permit from SEMARNAT for its Palos Verdes project in Sinaloa. “The Palos Verdes drilling program will consist of about five holes, with the longest hole planned at 150-175m, designed to test the vein on strike and below the high-grade intercepts from a previous drill program carried out in May 2018. The best intercept from that program was 8.42 g/t Au and 2,336 g/t Ag, over an estimated 0.8m true width”.
  • Vizsla Resources Corp., reported results from its current drill program at its Panuco property in Sinaloa. Significant drill intersects were encountered at hole NP-20-25 with 2.02 g/t Au, 255 g/t Ag, 0.3% Pb, and 0.6% Zn (449 g/t AgEq) over a true width (TW) of 15.3m; and hole NP-20-27 with 8.7 g/t Au, 870 g/t Ag, 0.8% Pb, and 2% Zn (1,696 g/t AgEq) over a TW of 2.58m. 
  • Advance Gold Corp., reported drill results from two holes collared at its Tabasquena project in Zacatecas, to test a 3,500m long continuous high chargeability Induced Polarization (IP) anomaly. Hole AGT-15 intercepted 122 g/t over a narrow interval of 0.33m, 198 g/t Ag over 2.23m, and 664 g/t Ag over 2.15m; and hole AGT-16 intercepted 0.7% Pb and 2.6% Zn over 6.5m, including 2.27% Pb and 5.45% Zn over 1.3m. A new geophysical survey will be underway within days to determine east to west dimensions of the geophysical anomaly at the northern end.
  • VanGold Mining Corp., released assays from channel sampling carried out at its Pinguico property in Guanajuato.  “El Pinguico vein system between the 4th and 6th levels (from approximately 130m to 185m below surface), covering an area approximately 55 meters in height, by 60 meters in width and where the stopped out area, plus remaining vein material, ranges from 1.5 meters to 5.5 meters wide.  This exposure is adjacent to the El Pinguico shaft where crews continue to remove material blocking access to the #7 adit level”. Significant assays are 1.72 g/t Au and 630 g/t Ag (9.59 g/t AuEq or 767 g/t AgEq) over 1.6m; 4 g/t Au and 404 g/t Ag (9.05 g/t AuEq or 724 g/t AgEq) over 1.3m; and 4.59 g/t Au and 4566 g/t Ag (10.41 g/t AuEq or 833 g/t AgEq) over 1.2m. A weighted average grade of the underground sampling was 2.5 g/t Au and 363 g/t Ag (6.71 g/t AuEq or 537 g/t AgEq). Additionally, VanGold announced that a drill program will commence in the third week of November. It will consist of 14 holes for a total of 2,230m of HQ and/or NQ drilling.

ON MINING

  • Aura Minerals Inc., reported preliminary Q3, 2020 production results from its Aranzazu mine in Zacatecas. It produced 5,881 Oz Au, 101, 379 Oz Ag, and 6,921 Lb Cu (17,909 Oz AuEq).
  • GoGold Resources Inc., reported Q3, 2020 production activities from its Parral Tailings project in Chihuahua. The company produced 300,740 Oz Ag, 3,414 Oz Au, and 282.2K Lb Cu (a total of 605,287 Oz AgEq).
  • Endeavour Silver Corp., announced Q3, 2020 production results from their Mexican mine operations: Guanacevi in Durango, Bolañitos in Guanajuato, and El Compas in Zacatecas. Figures are summarized in the below table:
  • Great Panther Mining Limited, released production results from their Topia mine in Durango and Guanajuato Mine Complex in Guanajuato for the period Q3, 2020. At Topia, Durango, the company processed 20,292 tonnes of 0.85 g/t Au and 353 g/t Ag, at metallurgical recoveries of 55.5% and 92.5% respectively to produce 308 Oz Au, 213,320 Oz Ag, 1M Lb Pb, and 1.25M Lb Zn (383,897 Oz AgEq). At Guanajuato Mine Complex, Great Panther processed 45,101 tonnes of 1.59 g/t Au, and 131 g/t Ag at metallurgical recoveries of 83.4% and 85.5% respectively to produce 1,919 Oz Au and 161,927 Oz Ag (334,675 Oz AgEq).
  • Hecla Mining Company, announced production results from its San Sebastian mine in Durango for the period Q3, 2020.The company produced 1,931 Oz Au and 0.3M Oz Ag, for a total production of 6K Oz Au and 0.8M Oz Ag during the first 9 months of 2020.
  • Torex Gold Resources Inc., reported Q3, 2020 production results from its El Limon-Guajes mine complex in Guerrero. The company produced 131,790 Oz Au and sold 133,030 Oz Au at an average realized price of $1,880 per Oz. Torex has produced 299,830 Oz Au and sold 304,230 Oz Au  through the first nine months of 2020, at an average realized gold price of $1,735 per Oz.

ON FINANCING

  • Almadex Minerals Ltd., announced a proposed non-brokered private placement for gross proceeds of approximately $1.35M. The company intends to use the proceeds for general corporate purposes (El Chato project, Puebla).
  • Barksdale Resources Corp., granted stock options to its directors, employees and consultants to purchase up to 925K common shares at an exercise price of $0.50 per share  (San Javier project, Sonora).
  • Comet Resources Limited, raised $1M under its share purchase plane with approximately 180 shareholders participating. These funds are in addition to the $2M raised under the previous placement completed in September 2020. Part of the proceeds raised will be used to fund activities at its Santa Teresa project in Baja California.
  • Golden Tag Resources Ltd., announced that it has initiated the process to have its common shares trading on the OTCQB Venture Market and the repricing of 9.9M incentive stock options from $0.325 to $0.33 (San Diego property, Durango).
  • Inomin Mines Ltd., closed a non-brokered private placement for gross proceeds of $400,500. The company will use the gross proceeds to establish operations in Mexico to move forward with the La Gitana project in Oaxaca.  
  • Santacruz Silver Mining Ltd., closed the first tranche of its previously announced non-brokered private placement for gross proceeds of $7,629,279.02. Gross proceeds will be used to purchase underground equipment for its Zimapan property in Hidalgo and for general working capital and corporate purposes. Santacruz also announced that due to the strong demand it has further increased the size of the private placement to up to $10M. Closing of remain tranche(s) of the private placement is expected to occur on or before October 14, 2020.
  • Mexus Gold US, announced that it has completed a 1 for 20 reverse split of its stock. The stock will began trading at its new price allowing the stock price to move up and accurately to reflect the value of the company. An increased stock price will also give Mexus the opportunity to uplist the stock once all parameters for doing so have been met. (Santa Elena mine, Sonora).   

ON RESOURCES AND DEVELOPMENT

  • Mexus Gold US recently announced the discovery of a significant amount of gold trapped in silver chloride at the bottom of the heap leach pad located at its Santa Elena mine. As stated in its recent press release the company noted that its ball mill gravity recovery system would be used to recover this gold, allowing the company to run high grade material from the Julio quartz vein at its Santa Elena mine located in Caborca, Sonora.

ON DEALS AND CORPORATE ISSUES

  • Avino Silver & Gold Mines Ltd., announced that it reached an agreement with the Mexican Mining Union and the strike at the mine has ended (Avino mine, Durango).
  • Gold Resource Corporation, announced its intent to spin-off in two separate companies its Nevada and Oaxaca Mining Unit. The company wants to spin-off its Nevada Mining Unit to shareholders as a separate publicly-traded company. The transaction is targeted to be completed by year-end 2020 or the first quarter of 2021.  With this transaction, the Oaxaca Mining Unit would be focused on expanding and discovering new vein systems since it has only drilled 2% of its 560 square kilometer land package in Oaxaca (Arista Mine, Oaxaca).
  • Gray Rock Resources Ltd., announced the change of its name to Silver Wolf Exploration Ltd., effective October 8, 2020. The company shares will commence trading on the TSX Venture Exchange under the new trading symbol “SWLF” (Ana Maria project, Durango).  
  • Impact Silver Corp., executed a letter of intent to option the Nuevo Taxco project in Guerrero to Road Oak Mining Corp. , under which Red Oak will carry exploration of a portion of Impact´s very large land position in Mexico. The Nuevo Taxco project comprises 1,100 hectares and is located on the NW extension of the famous Taxco Silver Mining District, and the area is prospective for high grade Ag-Au mineralization. Red Oak may earn a  100% interest by making staged payments and incurring exploration expenditures over a 3-year period as follow:  a) $50K in cash and 500K Red Oak common shares upon TSXV approval of the transaction and closing of their financing, b) $200K in exploration expenditures on or before September 30, 2021, c) $100K in cash, 1M common shares, and $400K in exploration expenditures before September, 2022, and d) $150K in cash, 2M common shares, and $800K in exploration expenditures on or before September, 2023. IN addition, Impact will retain a 1% NSR that Red Oak may buy back for CAD $1M.
  • Osisko Gold Royalties Ltd., announced spin-out of mining assets and creation of a premier North American Gold Development company (San Antonio project, Sonora). Osisko and Barolo Ventures Corp., entered into a binding letter agreement outlining the terms upon which Osisko Royalties will transfer certain mining properties (or securities of the entities that directly or indirectly own such mining properties), including the San Antonio Gold property in Sonora and Guerrero properties in Guerrero state as well as  a portfolio of marketable mining properties in Canada valued at approximately CDN $116M, to Barolo in exchange for common shares of Barolo which will result in a “Reverse Take-Over” of Barolo under the policies of the TSX Venture Exchange.
  • Silver Dollar Resources Inc., reported that it is evaluating to transfer its Canadian exploration projects to a new subsidiary that would be spun out to Silver Dollar shareholders. It allows Silver Dollar to be focused on the exploration and development of its advanced stage la Joya property in Durango.

ON SOCIAL RESPONSIBILITY

  • Minera Cuzcatlán (Fortuna Silver Mines Inc.), fulfilled an agreement with the Oaxaca community to extend the hours of attention to patients at the Health Center of the Municipal Headquarters, benefiting the inhabitants of the municipality, agencies and ranches. In addition, two specialized spaces were enabled for general medicine and emergency care, and the two municipal ambulances were maintained, one of them equipped for the transfer of patients with COVID-19 symptoms. It is worth mentioning that the agreement will be in force until the health emergency due to COVID-19 is lifted by the Federal Government through the General Health Council.
  • In the Municipality of Guadalupe y Calvo, Chihuahua, 11 school domes were inaugurated, of which 6 were made with resources from the Mining Fund and five in coordination with the Municipality and the State.
  • Industrias Peñoles SAB de CV faces firmly the new challenges posed by the pandemic and continues to prepare to create the health conditions required to protect its thousands of workers, highlighting that this has undoubtedly been an extremely complicated year. In addition to the fact that during this 2020 none of its workers will be left without employment. Peñoles today applies the highest standards of health protection to continue operating as a company and also as an industry despite all the circumstances.

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

On the picture above, a rich-Mn jasperoid from an epithermal system in a prospect in Chihuahua, Mexico.  Photo by Miguel A Heredia.

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

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By Jorge Cirett

During the 28th week of the year (July 6th to July 12th, 2020), at least 31 press releases were announced by companies working in Mexico. Notably, six of those were exploration updates and six more related to financing. ON MEXICO ISSUES, a 12,000 years old ochre mining operation (now submerged) was discovered in the Yucatan peninsula. Avino Silver is the new victim of an illegal blockade. Mining in Mexico has extensive benefits to isolated communities, workers and the government. The Mining Fund rules have been changed, granting more political freedom on its assignment. Mines in the country prepare for production recovery in the second half of 2020.  ON EXPLORATION, in Sonora, Tarachi Gold is mapping and sampling on its Tarachi concessions, announced the finding of a porphyry copper system. In Sinaloa, Brigadier Gold is now exploring the Picachos property; Vizsla Resources released high-grade results on its Panuco property. In Durango, Canasil is now drilling the Nora project.  ON MINING, Argonaut Gold, Endeavour Silver, Great Panther, and Hecla released production results for the Q2, 2020. The figures presented reveal the extent of the Coronavirus emergency lockdown effects.  ON FINANCING, Aura Resources is aiming to raise up to $1 M. Prospero Silver consolidated its shares on a 10 to 1 basis. Mithril Resources intends to raise A$3.5 M. Solaris Resources is to trade in the TSX Venture Exchange. Advance Gold raised $301 K. Vizsla Resources announced a private placement for C$25 M. ON RESOURCES AND DEVELOPMENT, Mexican Gold commenced a 10,000 m drill program at its Las Minas project in Veracruz. GR Silver released more historic drilling results from Plomosas, Sinaloa. GoGold Resources released drilling results from eight more holes at Los Ricos Sur, Jalisco. Golden Minerals is drilling the Rodeo project in Durango. Magna Gold is producing gold from leaching heaps as it prepares to restart mining at the San Francisco mine in Sonora. ON DEALS AND CORPORATE ISSUES, Aura Resources is to change its name to Gold79 Mines. Brigadier Gold entered into a LOI with Minera Camargo to option 100% of the Picachos property in Sinaloa. First Mexican Gold changed its name to QcX Gold. Candente Gold informed the due diligence work on Magellan Acquisition assets in Nayarit has been conducted, results pending. Silver Tiger Metals is sampling historic workings on veins north of the El Tigre mine in Sonora. ON SOCIAL RESPONSIBILITY. Gold Resources, Torex Gold, Fortuna Silver, Fresnillo PLC and Peñoles informed on support activities and investments related to the Coronavirus emergency, community work supplies and/or about the “Day of the Tree”.

ON MEXICO ISSUES

  • Researchers discovered 12,000 years old submerged ochre mines in the Yucatan peninsula. Multiple artifacts and evidences of mining were found in this cave system that was above sea level up to 8,000 years ago.
  • Avino Silver & Gold Mines reports that members from the Mexican mining union have blocked the entrance to the Avino Mine in Durango. The group (that illegally blockades) includes the company’s unionized workers. As a result of the strike at the site, mining and mill processing operations have been halted.
  • Mining in Mexico supports 696 communities in 21 States, and often is the only option to take basic services and jobs to regions far away. The mining sector provides 2.6 percent of the GDP and accounts for 8.2 percent of the industrial output. Salaries at US$779/month (17,521 pesos/month) are 39 percent higher than the national average of $513/month (11,549 pesos/month). There are 379 thousand direct jobs and 2.3 M indirect jobs generated by the industry. Mining paid US$1.91 billion ($43,095 million pesos) in mining concession fees in 2019, and US$7,755 billion ($174,500 million pesos) in taxes in the 2016-2019 period.
  • The Mining Fund rules have been changed. The changes in the rules were published in the Diario Oficial de La Federación (Official Gazette), with the aim of speeding the process to deliver benefits to the communities, according to the document. The changes (which were opposed by the mining community because of the increased political control of the funds) include the elimination of necessary cost-benefit assessment of the projects deemed for social infrastructure, discarding also the obligation to establish coordination agreements in the request and delivery of said funds. The Mining Fund distributes part of the 7.0% of royalties and the 0.5% special tax on precious metal exploitation.
  • Mines in all the country prepare for a production recovery in the second half of 2020, as all companies have scrambled to operate under health safeguards brought by the Coronavirus pandemic.

ON EXPLORATION

  • Advance Gold Corp. provided an update on exploration of its Tabasqueña property in Zacatecas. The exploration that started trying to define epithermal vein mineralization has modified its target to a volcanogenic massive sulfide (VMS). A large chargeability anomaly more than 3 km long was defined in a geophysical survey, and subsequent drilling has intersected disseminated sulfides. Drilling of the disseminated sulfides has returned up to 39 ppb Au, 7 ppm Ag, 351 ppm Cu, 54 ppm Pb, 295 ppm Zn.
  • Brigadier Gold Ltd. entered into a binding letter of intent with Minera Camargo S.A. de C.V. for an option to acquire 100% interest in the Picachos property in Sinaloa. The area has more than 160 known historic underground workings, a recently identified porphyry copper prospect and drill permits in place. “The largest vein system trends northeasterly for seven kilometers along a major fault zone, and host the past-producing San Agustin underground mine”. Regional stream sediment results from a government survey shows several highly anomalous basins with up to 2.6 ppm Au, 299 ppm Cu, 13.9 ppm Mo, 639 ppm Pb and 1,716 ppm Zn.
  • Vizsla Resources Inc. released additional drilling results from the Napoleon vein corridor at the Panuco project in Sinaloa. Highlighted core length drill intercepts comprise 6.0 m @ 66.8 gpt Au, 1,808 gpt Ag (including 3.7 m @ 107.8 gpt Au, 2,889 gpt Ag); 1.78 m @ 2.49 gpt Au, 59 gpt Ag; 3.5 m @ 1.11 gpt Au, 57 gpt Ag; 10.65 m @ 1.34 gpt Au, 134 gpt Ag. The corridor “ hosts two main quartz veins that are separated by some 10 to 20 metres and appears to dip very steeply to sub-vertical. So far it has been mapped along strike for over 2,000 m. Between the two main veins are a series of smaller splay veins with variable orientations, that are related to dilation along the structure under strike slip movement …. Vizsla has an option to acquire 100% of the newly-consolidated 9,386.5 Ha Panuco district in southern Sinaloa, Mexico, near the city of Mazatlán. The option allows for the acquisition of over 75 km of total vein extent, a 500 tpd mill, 35 km of underground mines, tailings facilities, roads, power and permits”.
  • Tarachi Gold Corp. updated on field work activities on the concessions known as the Tarachi project, in Sonora. Detailed mapping and sampling on the La Dura and Virginia areas of the southern Jabali concession is near completion. Preliminary field work on the northern concessions of San Javier, Pretoria and Chivitas was also conducted, finding porphyry copper mineralization that is currently being defined. Environmental applications for drilling are ready for submission.
  • Canasil Resources Inc. started the drill program to test the Candy vein at its Nora project in Durango. Mineralization at Nora is hosted within structurally-controlled epithermal veins, of which the Candy vein is to be tested in a 500 m stretch.

ON MINING

  • Argonaut Gold Inc. announced second quarter production of 31,531 Oz AuEq from its Mexican operations. For the full-year 2020 the company expects to produce 45 K – 50 K Oz AuEq at El Castillo, 62 K – 68 K Oz AuEq at San Agustín (both in Durango) and 53 K – 55 K Oz AuEq at La Colorada (Sonora), for a total production of 160 K – 173 K Oz AuEq in Mexico.
  • Endeavour Silver Corp. presented Q2 2010 production figures, which were down 42% because of the Coronavirus pandemic lockdown. On the bright side, significant true width high-grade intercepts were made near current mine workings, like 1.5 m @ 24.3 gpt Au, 3,217 gpt Ag in Bolañitos, Guanajuato, and 10.0 m @3.25 gpt Au, 1,410 gpt Ag at Guanaceví, Durango.Endeavour Q2 2020 Production1
  • Great Panther Mining Ltd. released second quarter 2020 production results, with figures from its Mexican operations. At Topia, Durango, 7,781 tonnes were processed @ 352 gpt Ag, 0.87 gpt Au, recovering 92.5% Ag, 54.0% Au to produce 81.4 K Oz Ag, 118 Oz Au, 163 tonnes Pb, 223 tonnes Zn. At the Guanajuato mine complex, Guanajuato, 16,755 tonnes were processed @ 133 gpt Ag, 1.80 gpt Au, recovering 85.4% Ag, 84.7% Au, to produce 61 K Oz Ag, 819 Oz Au.
  • Hecla Mining Co. released preliminary production results for the second quarter 2020. At San Sebastian, in Durango, 2 M Oz Ag, 1,331 Oz Au were produced. Mining of oxide material is expected to be completed in the third quarter and milling in the fourth quarter of 2020. The viability of mining the sulfide Hugh Zone continues to be assessed. The mill operated at an average of 528 tpd.

ON FINANCING

  • Aura Resources Inc. initiated a non-brokered private placement aiming to raise between $500 K and $1 M (Taviche, Oaxaca).
  • Prospero Silver Corp. announced that the previously disclosed proposed consolidation of its shares, on a 10 to 1 basis, should have taken effect on July 7, 2020 (Pachuca East, Hidalgo).
  • Mithril Resources Ltd. received firm commitments to raise A$3.5 M through a share placement. Funds are to be used for the maiden drill program at its Coplaquin property in Durango.
  • Solaris Resources Inc. announced its common shares have been approved to list on the TSX Venture Exchange, and expects the trading is to be effective on July 13, 2020 (La Verde, Michoacan).
  • Advance Gold Corp. closed the previously announced private placement, for gross proceeds of $301 K (Tabasqueña, Zacatecas).
  • Vizsla Resources Corp. announced a bought deal private placement with Canaccord Genuity Corp. on behalf of an underwriting syndicate to raise C$25 M (Panuco, Sinaloa).

ON RESOURCES AND DEVELOPMENT

  • Mexican Gold Mining Corp. announced the commencement of a 10,000 m drill program to test all targets at Las Minas, Veracruz. A focus of the drilling is to expand and upgrade the current resource at El Dorado, follow up a previous 5.2 m pyrite rich quartz vein intersection @ 8.94 gpt Au at Cinco Señores, two high-grade vein trends at the Changarro zone, and the Las Minillas skarn occurrence. Other activities in preparation of the preliminary economic assessment (PEA) include the environmental baseline study, an enhanced metallurgy study and a Lidar digital terrain model.
  • GR Silver Mining Ltd. released historic drilling results from the San Juan area at its Plomosas property in Sinaloa. Highlighted true width (tw) intervals comprise 1.5 m @ 2.1 Gpt Au, 8 gpt Ag, 0.8% Pb, 4.1% Zn; 21.8 m @ 1.0 gpt Au, 7 gpt Ag, 1.5% Pb, 1.0% Zn; 2.4 m @ 15.1 gpt Au, 45 gpt Ag, 3.1% Pb, 0.9% Zn; 10.4 m @ 0.7 gpt Au, 7 gpt Ag, 1.6% Pb, 2.3% Zn; 25 m @ 0.3 gpt Au, 26 gpt Ag, 0.6% Pb, 0.8% Zn. These results extend mineralization 600 m on the San Juan system, to a total of 1 km in longitude.
  • GoGold Resources Inc. released the assay results from eight diamond drill holes at the Los Ricos South project in Jalisco. The San Juan, Rascadero, and East vein zones were tested, with highlighted results comprising 8.8 m @ 0.23 gpt Au, 44 gpt Ag at San Juan; 41.0 m @ 1.36 gpt Au, 168 gpt Ag (including 4.0 m @ 11.85 gpt Au, 1,295 gpt Ag); 18.4 m @ 5.18 gpt Au, 500 gpt Ag (including 3.2 m @ 26.2 gpt Au, 2,372 gpt Ag); 12.6 m @ 0.70 gpt Au, 111 gpt Ag at Rascadero; 3.0 m @ 0.33 gpt Au, 40 gpt Ag; 6.1 m @ 0.26 gpt Au, 36 gpt Ag at the East vein.
  • Golden Minerals Co. has commenced drilling at its Rodeo property in Durango. “The upcoming drill program will expand on the historic drilling campaigns that successfully tested multiple gold-quartz veins and breccias of the Rodeo low sulfidation vein system with encouraging results”. Highlighted historic drills results include 28.44 m @ 3.04 gpt Au, 5 gpt Ag; 25.4 m @ 3.79 gpt Au, 4 gpt Ag; 22.35 m @ 3.28 gpt Au, 17 gpt Ag; 28.45 m @ 4.87 m @ 10 gpt Ag31.2 m @ 5.99 gpt Au, 12 gpt Ag; 19.15 m @ 2.58 gpt Au, 5 gpt Ag; 19.2 m @ 1.93 gpt Au, 6 gpt Ag.
  • Magna Gold Corp. provided an operational update on its San Francisco mine in Sonora. “During the first two months of operations, the San Francisco Mine reported sales of US$8.53 million and operating costs of US$3.77 million with an operating margin of US$4.76 million. The Company produced 5,087 ounces of gold and sold 4,977 ounces of gold at an average cost of US$741 per ounce of gold produced and an average cost of $758 per ounce of gold sold. Gold production in May was 2,349 ounces and in June reached 2,738 ounces”. The company intends to complete the pre-feasibility study (PFS) by the end of July, when the processing of new fresh mineralized material is to start. Cash at the end of June at the San Francisco mine was US$8.4 M.

ON DEALS AND CORPORATE ISSUES

  • Aura Resources Inc. expects to change its name to Gold79 Mines Ltd. following the closing of the Territory Metals acquisition (Taviche, Oaxaca).
  • Brigadier Gold Ltd. entered into a binding letter of intent with Minera Camargo S.A. de C.V. for an option to acquire 100% interest in the Picachos property in Sinaloa. To acquire the 3,954 ha property Brigadier has to pay Minera Camargo US$275 K over five years and issue a total of 4 M shares over the same period, and 1 M shares when defining a 350 K Oz Au resource and US$725 K and 1 M shares when a feasibility report is completed, US$2 M upon commercial production commencement and a 2% NSR.
  • First Mexican Gold Corp. announced the change name to QcX Gold Corp. has been made effective on July 6, 2020 (Hilda, Sonora).
  • Candente Gold Corp. informed its due diligence team conducted the visits to the San Dieguito de Arriba processing plant and the historic El Dorado mine in Nayarit. The due diligence visit is part of the Memorandum of understanding (MOU) between Candente and Magellan Acquisition Corp. “The results of these tests along with recommendations for rehabilitation work and projections of ongoing operating expenses will provide the basis for a cost estimate to return the plant to operational status with feed material from the El Dorado Property.” (El Oro, Estado de México).
  • Silver Tiger Metals Inc. commenced underground channel sampling on the high-grade silver veins north of the historic El Tigre mine, in Sonora. “The areas of focus includes the Caleigh vein, the Canon Combination vein (unmined portion of the El Tigre vein), the Protectora vein and the Fundadora vein, all of which are located in the three kilometers of exposed veins at surface north of the historic El Tigre Mine”.

ON SOCIAL RESPONSIBILITY

  • Don David Gold Mines (Gold Resources) informed on the actions taken to work under the Coronavirus pandemic emergency at its operations in Oaxaca. The company supports the Mining Fund with US$8.34 M ($187.7 M pesos) and US$533 K ($12 M pesos) for community deals and infrastructure.
  • Minera Media Luna (Torex Gold) in coordination with local and State authorities released 300 K tilapia alevins (juvenile fish), with a shared company-authorities investment of $44.4 K ($1 M pesos). Also, $39.2 K ($881,764 pesos) were delivered to help the fishermen to modernize their engines and boats.
  • Minera Cuzcatan (Fortuna Silver) announced its plan to plant 13,500 seedlings of native species of the central valleys of Oaxaca in 15 ha of ground. The company has planted already 25,000 seedlings over the last three years on 25 ha.
  • Fresnillo PLC made a recount of the activities that the company has done regarding reforestation as years go by. The Bosque Sustentable Porvenir in Durango was established in 977 ha in association with the Instituto Nacional de Investigaciones Forestales, Agrícolas y Pecuarias. In Juanicipio, Zacatecas, 21,596 plants were relocated, and 14.3 ha were re-forested with 6,787 greenhouse seedlings. At La Herradura, in Sonora, 4,975 plants have been relocated in eight ha, and reforested 2 hectares more. Overall, 1.4 M seedlings have been produced since 2003 by the company.
  • Industrias Peñoles created in Torreon, Coahuila, the 18 ha Bosque del Centenario in 2001, which is now a green space in the city. The company’s greenhouse produces and donates to the community and its members 80,000 seedlings per year.

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

On the image below:   Vapor whiffs on a cool morning in a hot spring field in Queretaro. Picture by Jorge Cirett.

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

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By Jorge Cirett

During the 20th week of the year (May 11th to May 17th, 2020), at least 43 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, Camimex informed 23 mining companies supported 16 States on the Coronavirus emergency. The federal government announced the inclusion of the mining industries in the list of “essential” activities that could be performed under the Coronavirus emergency, starting on 18 May 2020…. only to backtrack a few days later with the announcement that mining companies “can begin to prepare” on 18 May, to start working on 01 June, 2020. Francisco Quiroga, sub-secretary of Mining, stated that the mining industry cannot wait until 01 June, 2020, for reactivation. The Supreme Court will evaluate the impugnation against the reform by which the federal government took control of the Mining Fund. First Majestic has taken steps to sue the federal government under provision of chapter 11 of NAFTA, on grounds of double taxation.  ON EXPLORATION, in Sinaloa, Vizsla Resources released results from seven historic holes from the Plomosas Mine area at its Plomosas project. In Zacatecas, Alien Metals informed on two targets defined with the aid of IP, gravity, magnetic and geochemical surveys at its Donovan 2 property. ON MINING, Santacruz Silver, Great Panther Mining, Torex Gold, Capstone Mining, Alamos Gold, Consolidated Zinc and Newmont announced their coming back to production on 18 May 2020 (the date previously released by the government to end the mining lockdown). Fortuna Silver, Argonaut Gold, Sierra Metals, Starcore International and First Majestic released quarterly results. Excellon Resources will postpone the filing of its interim financial statements. ON FINANCING, Canuc Resources closed a financing round for $100 K., Americas Gold and Silver closed it bought deal financing for C$28.75 M. Silver Viper opened a private placement intending to raise up to C$5 M. Minaurum Gold announced a C$4.2 M financing, concurrent with the previously announced C$5 M financing. Endeavour Silver entered into an agreement to raise up to $23 M for its Terronera project. GR Silver Mining granted 1.38 M options to insiders. Starcore commenced trading on the OTCQB. Oceanus Resources is to change name to Silver Tiger Metals Inc. ON RESOURCES AND DEVELOPMENT, SilverCrest Metals released infill and expansion results on the high grade footprint of the Babi Vista vein, which by now stands at 400 m long by 200 m in height, 1 m wide, grading 20.26 gpt Au, 1,590 gpt Ag. GR Silver Mining released high-grade results from historic drill holes at its Plomosas project in Sinaloa. GoGold Resources released drill hole results from the Los Ricos South project in Jalisco. Golden Minerals filed a PEA on its Velardeña properties in Durango. Sierra Metals filed a technical report on the Bolivar mine, Chihuahua. ON DEALS AND CORPORATE ISSUES, Vizsla Resources renegotiated the terms of the Rio Panuco agreement, reducing by $4.2 M the payments to be made before early 2022. Sonoro Metals withdrew the technical report on Cerro Caliche, Sonora, as required by the British Columbia Securities Commission. Discovery Metals announced the resignation of Jose Vizquerra from the board of directors. ON SOCIAL RESPONSIBILITY. Minera San Julian, Capstone, Fresnillo PLC, Endeavour Silver, Argonaut Gold, Peña Colorada, La Cantera Desarrollos Mineros, First Majestic, Newmont and Grupo Mexico informed on donations ad work realized to aid communities, mainly on subjects related to the Coronavirus emergency, like medical supplies and equipment (even the construction of a hospital), but comprising also a large array of investments and measures that benefit the mining communities.

ON MEXICO ISSUES

  • Camimex informed 23 mining companies working in Mexico have supported 16 States in the country, with activities and donations of medical supplies to aid communities in the Coronavirus emergency. Mexico was the only country in North America that did not place mining within the essential industries to continue activities during the lockdown.
  • The Consejo de Salubridad General (General Health Council) approved four agreements for the gradual lifting of measures to fight the Coronavirus, one of which is the declaration of mining as part of the essential industries that are permitted to continue work during the Covid-19 emergency (Important.- See note below).
  • Adding to the confusion on government announcements, the sub-secretary of health prevention and promotion Hugo López Gatell informed mining, construction and automobile industries are to start activities until 01 June 2020. Most mining companies had already announced the commencement of activities on 18 May, 2020, as the mining industry had been declared essential, a term which has allowed other industries to continue activities during the Coronavirus emergency. In this twist of events, the sub-secretary said these industries can prepare for starting work on 01 June, 2020, and that further notice on physical modification of workspaces, schedules, and distance between workers, among other regulations to be announced on 18 May, 2020.
  • Francisco Quiroga, sub-secretary of Mining, stated that the mining industry cannot wait until 01 June, 2020, for reactivation. This after the Health Secretariat established a two week preparation period for re-establishment of operations. “We cannot wait to the termination of the pandemic to get back to work. In mining we return to operate adhering to strict protocols and sanitary measures: since the people leaves home until they return”.
  • The Supreme Court will evaluate (after five months wait) the impugnation against the reform by which the federal government took control of the Mining Fund. The Supreme Court also has to rule in the case of Puebla’s indigenous communities against the granting of mining concessions in their ground.
  • First Majestic Silver Corp. “has taken steps to serve the Government of Mexico with a Notice of Intent to Submit a Claim (“Notice”) under the provisions of Chapter 11 of North American Free Trade Agreement (“NAFTA”)”. The company claims the SAT (Servicio de Administración Tributaria, equivalent to the IRS in USA), has shown a strong deviation from several international treatises on double taxation. “The service of this Notice by the Company on the Government of Mexico initiates a 90-day process for the Government of Mexico to enter into good faith and amicable negotiations with the Company to resolve the current dispute”.

ON EXPLORATION

  • Vizsla Resources Corp. released drilling results from seven holes on the Honduras vein and surface and underground sampling of the Animas, Cordon de Oro and Napoleon vein corridors at its Panuco project in Sinaloa. Highlighted drill intercepts comprise 4.35 m @ 208 gpt Ag, 0.83 gpt Au (including 1.0 m @ 432 gpt Ag, 1.55 gpt Au) and 2.60 m @ 151 gpt Ag, 1.02 gpt Au (including 0.70 m @ 294 gpt Ag, 2.09 gpt Au). Highlighted surface and underground sampling results comprise: 3.2 m @ 44 gpt Ag, 16.52 gpt Au (including (1.0 m @76 gpt Ag, 38.20 gpt Au); 11.90 m @ 140 gpt Ag, 1.67 gpt Au (including 2.90 m @ 249 gpt Ag, 3.84 gpt Au); 4.20 m @ 230 gpt Ag, 3.13 gpt Au (including 1.20 m @ 655 gpt Ag, 10.15 gpt Ag).
  • Alien Metals Ltd. informed excellent targets have been generated at its Donovan 2 project in Zacatecas, from an IP survey, coincident with previous geophysical and sampling results. The two stronger targets comprise the North zone prospect known as Cerro de la Cruz where ground magnetics, gravity and IP geophysics all returned coincident anomalies and the Central prospect known as Los Alomos where historical anomalous rock samples and the ground IP geophysics returned coincident anomalies.

ON MINING

  • Fortuna Silver Mines Inc. released financial results for the first quarter of 2020, without elaborating on figures from its Mexican operations. “As at March 31, 2020, the Company had $88.5 million of cash and cash equivalents…. and the company’s $150 M bank credit facility had been fully drawn”. AISC per silver ounce in the San Jose mine in Oaxaca was $10.70.
  • Argonaut Gold Inc. released its operating and financial results for the first quarter of 2010, including figures from its Mexican operations. The El Castillo Complex in Durango produced 28,508 Oz AuEq at a cash cost of $941, with 5.28 M tonnes of waste moved and 5.63 M tonnes of ore mined and 4.68 M tonnes placed on the heaps @ 0.44 gpt Au, producing 27,270 Oz Au, 99 K Oz Ag. La Colorada in Sonora produced 13,028 Oz AuEq at a cash cost of $1,021 per Oz Au, with 4.68 M tonnes of waste moved, and 947 K tonnes of ore mined and 966 K tonnes loaded to the leach pads @ 0.35 gpt Au, producing 13,028 Oz Au, 54.2 K Oz Ag. The company is preparing to restart activities at its two operating units as restrictions to work on the Coronavirus emergency ease.
  • Sierra Metals Inc. presented consolidated results for the first quarter of 2020. The Bolivar Mine processed a record 377.5 K tonnes in Q1 2020, representing a 43% increase over Q1 2019. Copper represents 40% of Sierra Metals’ revenue in Q1 2020, as the Company is trending towards copper as its main product as a percentage of revenue. During the period 8,048 m were drilled at Bolivar, Chihuahua, whereas at Cusi, also in Chihuahua, 2,172 m were drilled. The company held 36.9 M in cash and cash equivalents by the end of the period, with $49.2 M in working capital.
  • Starcore International Mines Ltd. announced production results for the fourth quarter of fiscal year 2019, ended April 30, 2020, at its San Martin mine in Queretaro. During the quarter 56.k tonnes were milled @ 1.65 gpt Au, 25.3 gpt Ag, recovering 88.7% Au, 55.8% Ag, to produce 2,925 Oz AuEq.
  • Santacruz Silver Mining Ltd. commenced preparations to resume mining and milling operations at the Zimapan mine in Hidalgo on May 19, 2020.
  • Great Panther Mining Ltd. intends to restart operations in Mexico this month in accordance with the Mexican federal government’s announcements of the lifting of restrictions that have suspended mining operations in the country since the start of April (Topia, Durango).
  • Excellon Resources Inc. will postpone the filing of its interim financial statements and management’s discussion and analysis for the first quarter of 2020, relying on the blanket relief granted by Ontario Instrument 51-502, which provides for up to a 45-day extension for periodic filings (Platosa, Durango).
  • Fortuna Silver Mines Inc. presented first quarter 2020 results. At San José, in Oaxaca, 246.8 K tonnes were milled, averaging 2,837 tonnes per day (tpd) @ 216 gpt Ag, 1.33 gpt Au, with recoveries of 92% Ag, 91% Au, to produce 1.57 M OZ Ag, 9,630 Oz Au at production cash cost $7.50 per Oz Ag and AISC $10.70 per Oz Ag.
  • First Majestic Silver Corp. announced consolidated financial results for the first quarter 2020. Restart procedures are being taken after the announcement of the lifting of the Coronavirus emergency for mining companies, to start work by 18 May, 2020. The company ended the quarter with $145.2 M in cash and cash equivalents.First Majstic Q1 production1
  • Torex Gold Resources Inc. plans to resume full production at its El Limón Guajes mining complex in Guerrero by the end of this month, following the designation of mining as an essential activity by the government.
  • Capstone Mining Corp. announces it has safely started ramping up operational activities at its Cozamin mine in Zacatecas, following the Mexican federal government announcement on May 12, 2020 that mining is an essential industry.
  • Alamos Gold Inc. expects to begin ramping up full operations at its Mulatos mine in Sonora on May 18, 2020. Following the Mexican government’s declaration of mining as an essential activity.
  • Consolidated Zinc Ltd. advised that the Mexican Government has instructed that all mining is to be considered an essential service, allowing the Plomosas mine and Aldama concentrator to re-commence operations from 18 May 2020. It is expected the ramp up back to full production will be completed by the end of May.
  • Newmont Corp. expects to begin safely ramping up operations at Peñasquito in Mexico on May 18 following the government’s designation of mining as an essential activity. “On April 22, Peñasquito reached a definitive agreement with the San Juan de Cedros community (one of 25 neighboring communities) in Zacatecas, Mexico on land use, water availability, infrastructure and social investments. This includes access to 10,000 hectares for exploration and operational purposes, and resolves all outstanding issues with the community. The agreement was reached with the support of Mexico’s Ministry of Interior (SEGOB) and representatives of the State of Zacatecas and was signed by elected representatives of the Cedros community. The agreement is expected to be ratified in a General Assembly once COVID-19 restrictions on gatherings are lifted by the government. The agreement expressly states that any future disputes will be resolved through dialogue and free of blockades”.

ON FINANCING

  • Canuc Resources Corp. closed a non-brokered private placement for gross proceeds of $100 K (San Javier, Sonora).
  • Starcore International Mines Ltd. announced its shares have been approved to commence trading on the OTCQB. “This listing on the OTCQB compliments the Company’s listings on the Toronto Stock Exchange and the Frankfurt Stock Exchange” (San Martin, Queretaro).
  • Americas Gold and Silver Corp. closed its previously announced bought deal financing with a syndicate of underwriters co‐led by Cormark SecuritiesInc. and Desjardins Capital Markets for aggregate gross proceeds of C$28.75 M (Cosalá, Sinaloa).
  • Consolidated Zinc Ltd. has established an on-line application for shareholders to subscribe for the new shares under the Entitlement Offer 23 April 2020 (Plomosas, Chihuahua).
  • Silver Viper Minerals Corp. entered into a letter of engagement with Eight Capital and Red Cloud Securities Inc. for a private placement aiming to raise C$5 M in gross proceeds (La Virginia, Sonora).
  • GR Silver Mining Ltd. granted incentive stock options to certain directors, officers, and consultants to purchase up to an aggregate of 1.38 M shares of the Company (Plomosas, Sinaloa).
  • Minaurum Gold Inc. announced that, concurrent with its C$5 M marketed private placement announced on May 4, 2020, the company has agreed to issue up to a further 10.5 M units to raise additional C$4.2 M in gross proceeds (Alamo Silver, Sonora).
  • Endeavour Silver Corp. entered into a sales agreement with BMO Capital Markets, CIBC Capital Markets, H.C. Wainwright & Co., TD Securities, Roth Capital Partners, B. Riley FBR and A.G.P., to sell common shares to raise gross proceeds of up to $23 M. No offers of sales of common shares will be made on the TSX or other trading markets in Canada. Net proceeds will be used to advance its Terronera project in Jalisco.
  • Mithril Resources Ltd. advised that its 1 for 1 Non-Renounceable Rights Issue closed at 5:00pm on 14 May 2020 (Copalquin, Durango).
  • Oceanus Resources Corp. announced that it is changing its name to Silver Tiger Metals Inc. on the TSX Venture Exchange. The company also announced a non-brokered private placement to raise up to $675 K (El Tigre, Sonora).

ON RESOURCES AND DEVELOPMENT

  • SilverCrest Metals Inc. is to restart exploration and development work at its Las Chispas Project in Sonora by mid-May, using strict COVID-19 protocols. The company also released in-fill and expansion drill results for the BaBi Vista vein at Las Chispas. The updated high-grade footprint is 400 m along vein strike by 200 m in height, grading 20.26 gpt Au and 1,590 gpt Ag over an average true width of 1.0 m, and open in most directions. Highlighted results from the last drill holes comprise true width intervals of 0.6 m @ 3.29 gpt Au, 216 gpt Ag; 0.9 m @ 12.44 gpt Au, 1,103 gpt Ag; 0.6 m @ 1.17 gpt Au, 93 gpt Ag; 0.4 m @ 2.0 gpt Au, 232 gpt Ag; 1.8 m @ 78.83 gpt Au, 5,235 gpt Ag; 0.4 m @ 3.12 gpt Au, 302 gpt Ag; 0.4 m @ 2.05 gpt Au, 148 gpt Ag; 0.4 m @ 4.72 gpt Au, 401 gpt Ag.
  • GR Silver Mining Ltd. reported high-grade drill results at its Plomosas project in Sinaloa. The results are from holes in the Plomosas mine area, drilled by previous operators of the property. Highlighted true width (TW) intervals comprise 1.74 m @ 118 gpt Ag, 30.64 gpt Au, 0.1% Pb, 0.1% Zn; 1.30 m @ 4.75 gpt Au; 4.23 m @ 57 gpt Ag, 1.35 gpt Au, 3.7% Zn, 3.3% Pb; 3.13 m @ 31 gpt Ag, 4.54 gpt Au, 5.8% Zn, 5.2% Pb; 4.96 m @ 52 gpt Ag, 2.60 gpt Au; 0.7% Zn, 3.1% Pb; 0.98 m @ 850 gpt Ag, 0.14 gpt Au, 0.8% Zn, 1.2% Pb; 14.09 m @ 185 gpt Ag, 0.07 gpt Au, 0.6% Zn, 0.8% Pb; 2.70 m @ 240 gpt Ag, 0.05 gpt Au, 0.9% Zn, 1.6% Pb; 3.42 m @ 240 gpt Ag, 0.05 gpt Au, 1.0% Zn, 1.6% Pb; 4.28 m @ 760 gpt Ag, 2.3% Zn, 1.5% Pb; 12.15 m @ 225 gpt Ag, 0.43 gpt Au, 3.0% Zn, 3.6% Pb; 1.45 m @ 1,659 gpt Ag, 0.19 gpt Au, 1.2% Zn, 3.7% Pb; 1.93 m @ 96 gpt Ag, 4.11 gpt Au, 0.8% Zn, 5.9% Pb.
  • GoGold Resources Inc. released assay results from 15 diamond drill holes at the Los Ricos South project in Jalisco. Highlighted core length intervals comprise 14.6 m @ 1.64 gpt Au, 136 gpt Ag; 15.7 m @ 0.52 gpt Au, 22 gpt Ag; 18.0 m @ 0.65 gpt Au, 85 gpt Ag; 19.0 m @ 0.89 gpt Au, 208 gpt Ag (including 5.4 m @ 2.28 gpt Au, 559 gpt Ag and 3.2 m @ 3.13 gpt Au, 858 gpt Ag); 11.5 m @ 0.86 gpt Au, 61 gpt Ag.
  • Golden Minerals Co. announced the filing on SEDAR of a preliminary economic assessment (PEA) and accompanying technical report for its Velardeña properties in Durango.
  • Sierra Metals Inc. filed a 43-101 compliant technical report on the Bolivar mine in Chihuahua. “There are no material differences in the Report from those results disclosed in the Company’s press release dated March 31, 2020”.

ON DEALS AND CORPORATE ISSUES

  • Vizsla Resources Corp. renegotiated the terms of the Rio Panuco option agreement, extending it for one more year. The Silverstone option period has been extended into 2022 and the total Panuco mining district option payments between now and the beginning of 2022 will be reduced by over USD$4.1 M, from USD$5.63 M to USD$1.48 M. The total Panuco and Silverstone agreement is for USD$43.08 M in seven years.
  • Sonoro Metals Corp. withdraws Cerro Caliche project development report filed on April 28, 2020, as a result of a review by the British Columbia Securities Commission. “The Company is amending the Report to correct problematic technical disclosures, and expects to publish a revised version in the next week” (Cerro Caliche, Sonora).
  • Discovery Metals Corp. announced that Mr. Jose Vizquerra has resigned as a director of the company to focus on other professional commitments (Cordero, Chihuahua).

ON SOCIAL RESPONSIBILITY

  • Minera San Julián (Fresnillo PLC), donated 20 tonnes of non-perishable food to the community of Guadalupe y Calvo, Chihuahua, as well as 2,300 face masks.
  • Capstone has donated approximately $150,000 pesos in Hacienda Nueva, Zacatecas. Food supplies and sanitizers are among the articles delivered.
  • Fresnillo PLC is to finish construction of the Covid-19 Hospital, in Fresnillo, Zacatecas by the end of May.
  • Fresnillo PLC donates medical equipment to the IMSS and General Hospital in Caborca, Sonora. The supplies include face masks, disinfectant gel and N95 face masks.
  • Endeavour Silver informed that during 2019 70% of all training involved safety education; received the “Caso de Plata” safety award at Guanacevi, Durango; Completed an average of 47 hours of training for each employee; supported 118 students with scholarships; sponsored several events to engage with over 1,000 locals in communities near Terronera, in Jalisco; fully funded a multi-use recreational facility for El Cubo community; planted 51,000 trees in reforestation projects and paid $5 M in various taxes.
  • Argonaut Gold Inc. informed it has delivered its 3,000th academic scholarship in Mexico, has initiated a local program with the community of Cerro del Gallo for the cleaning of the San Antón de las Minas River in Guanajuato, provided 150 food support pantries for families in San Juan del Rio in Durango and held the opening ceremony for the Argonaut Community House in La Colorada, Sonora, a center that the company donated to the community that is open for local stakeholders to interact with Argonaut team members and attend courses.
  • Peña Colorada donated 1,000 lab coats for doctors and 1,000 K95 face masks in Colima.
  • La Cantera Desarrollos Mineros installed the community lunch room in the El Encino neighborhood, in Guanajuato. The objective, partnering with the Municipality, is to assist the most needed with food supplies during the Coronavirus emergency; more than 60 families were serviced on the first day of operation.
  • First Majestic delivered 900 health sets to inhabitants of Tayoltita, Durango.
  • Newmont and the Zacatecas State signed an agreement to fight Covid-19. The company already has an integrated plan accepted by the Mining Sub-Secretariat, with a health perimeter and a protocol to follow should a Covid-19 positive case presents in the area. More than 24 tonnes of food has been delivered to persons in need on 25 communities, and Mx$5.25 M have been invested in the strengthening of hospital capacity; furthermore, 500 Covid-19 test kits were donated to the Health Secretariat and ventilators and screens are to be delivered to the desert health clinics.
  • Grupo Mexico and Cemza donate medical equipment in Campeche. The two groups donated medical equipment and supplies to the General Hospital “María del Socorro Quiroga Aguilar”.

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

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

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

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By Jorge Cirett

During the 10th week of the year (March 2nd to March 8th, 2020), at least 25 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, several companies are interested exploring for lithium in Zacatecas-San Luis Potosí. Grupo Mexico plans to invest 78% more in 2020. Several mining companies are to invest more than $200 M in exploration in Mexico. The year 2019 was not good for the mining industry in the country, with an overall decrease in production. Durango’s governor announced mining investments for $100 M. The Peñasquito mine is expected to produce 1.6 M Oz AuEq per year for the next five years. The Industria Nacional de Autopartes (INA) is promoting the installation of a lithium battery plant. The Future of the Mexican Mining Industry seminar was held during the PDAC convention in Toronto, Canada.  Peñoles is to switch to LP gas its diesel truck fleet at one of its mines in Sonora (Milpillas?). ON EXPLORATION, in Durango, Chesapeake Gold optioned the Duraznito project, near the San Dimas mine. In Veracruz, Azucar Minerals released more drill results from its El Cobre project.  ON MINING, US Antimony reported the successful startup of the Los Juarez production facilities in Queretaro and Guanajuato. Mexus Gold announced small scale heap leach gold production at its Santa Elena mine in Sonora. Bacanora Lithium presented financial results for the last six months of 2019. Gold Resource presented production figures for 2019. Fresnillo PLC and Premier Gold Mines released financial results for 2019. ON FINANCING, One World Lithium announced the amendment of the terms on a number of  purchase warrants previously issued by the company. Consolidated Zinc entered into unsecured loan facilities with CZL major shareholders. Premier Gold closed its public offering, for gross proceeds of $38 M. ON RESOURCES AND DEVELOPMENT, Mag Silver released results from last year’s 28-hole program with over 33,000 m of drilling, including some exciting intercepts. Gold Resource Corp. updated annual reserve estimates for the Oaxaca Mining Unit. Aura Minerals provided mineral reserve and resource estimates to the end of 2019 for the Aranzazu mine in Zacatecas. SilverCrest released metallurgical test results for its Las Chispas project in Sonora.  ON DEALS AND CORPORATE ISSUES, Mithril Resources is acquiring the company that controls the Copalquin project in Durango. Oroco Resource closed the acquisition of Altamura Copper, furthering its interest on the Santo Tomás project in Sinaloa. Magna Gold is acquiring Alio Gold’s San Francisco mine in Sonora. Sable Resources appointed Ruben Padilla as CEO. Equinox Gold and Leagold Mining received approval for its merger. GR Silver Mining and First Majestic signed a binding agreement on the sale to GR of the Plomosas property in Sinaloa. Prime mining signed a long-term surface agreement on its Guadalupe de Los Reyes project in Sinaloa. Cheaspeake gold optioned the El Duraznito project in Durango. Fortuna Silver is involved in legal proceeding regarding a royalty on one of its mining concessions. ON SOCIAL RESPONSIBILITY. Peñasquito  received two awards by Infonavit for its excellent compliance on payments.

ON MEXICO ISSUES

  • Claudia Pavlovich, Sonora’s governor, praised the work women realize in the State, while on a trip visiting mining communities, like Turicachi, Nacozari de García and Cumpas, where she realized various activities.
  • Gustavo Puentes, Secretary of Economic Development, announced several companies are interested in investing in lithium exploration in the border between San Luis Potosi and Zacatecas.
  • Camimex (Cámara Minera de México) supports women collaborators that unite on the movement #UnDíaSinNosotras (One day without us) that is trying to eradicate genre violence.
  • The inauguration of Mexican Stand on the Prospectors and Developers of Canada Convention (PDAC) in Toronto counted with the participation of Graeme Clark, Canada’s ambassador in Mexico, Juan José Gómez Camacho, Mexico’s ambassador in Canada, Francisco Quiroga, subsecretary of Mining, José rosas Aispuro, Durngo’s governor and Salvador García, president of the Asociación de Ingenieros de Minas, Metalurgistas y Geólogos de México (AIMMGM). The Mexico stand was possible due to the support of the AIMMGM, Peñoles, Minera Media Luna, Newmont, Alamos Gold, Endeaavour Silver, Asociación de Mineros de Sonora, Construplan, Detector Exploraciones, SSR Mining Pitarrilla, Santacruz Silver Mining, Starcore, International Mines, MacClean, Diesel Cargo, Accendo Banco, ROD General Contractor and Ecodrill, as the Mexican government no longer supports international promotion.
  • Grupo Mexico plans to invest 78% more in 2020. On mining the budget is US$1,217 M to produce 1.12 M tonnes Cu, further US$367 M to invest in transport and US$412 M in the infrastructure division.
  • Mining industry companies are to invest more than US$200 M in exploration in Mexico during 2020. Torex Gold plans to invest US$13 M in the Media Luna project; Fresnillo will invest over US$135 M in exploration in Chile, Peru and Mexico; First Majestic Silver will invest US$28 M in San Dimas, Durango and Santa Elena, Sonora; Pan American Silver is to invest more than US$37 M at Dolores in Chihuahua and La Colorada in Zacatecas.
  • Mining did not have a good year in Mexico in 2019. Mining is ongoing in 25 States, produces 8.1% of the industrial GNP and had a 5.1% contraction as result of the policies of the actual Federal Government. Since December of 2018 no new mineral concession titles have been granted, and the environmental regulator, SEMARNAT has delivered just one Environmental Impact Report (Manifestación de Impacto Ambiental, or MIA). In Puebla, a local court maintains a suspension of work on El Gorrión mine (Ixtaca) based on a legal complaint by a communal group (ejido) on a mineral concession the company no longer has. The Cosalá mine in Sinaloa is paralyzed by a conflict between unions masterminded by Morena’s senator Napoleon Gómez Urrutia, reminiscent of the conflict suffered by Torex Gold a few months ago under the same terms. The projected investments for US$5,343 M were not achieved, with the projected real figure likely to be around 60%, and exploration at 36% of the expected. Coming interactions of the industry with the Environmental regulator the sub secretary of mining, Francisco Quiroga and Alfonso Romo are to try to better the condition of the industry.
  • The governor of Durango, José Rosas Aispuro announced at the PDAC convention in Toronto, the investment of US$100 M in the mining sector during 2020 in the State.
  • The Peñasquito mine in Zacatecas is the biggest gold mine in Mexico, the second largest for silver and one of the biggest producers of zinc and lead. The mine is expected to produce 1.6 M Oz AuEq per year during the next five years. The company is striving to reduce costs and optimize the operation.
  • The Industria Nacional de Autopartes (INA) promotes the installation of a battery plant based on lithium, to take advantage of the natural resources and the industrial prowess of the country. Bacanora Lithium plans to invest US$420 M on the installation of a processing plant in Bacadehuachi, Sonora, in order to produce 17 K tonnes a year. About 85% of the lithium producers are in Asia, and USA produces 20% of the batteries. The nearness to the USA and sea ports are other advantages for project owned by Bacanora Lithium.
  • During December 2019 mining grew by 0.9% thanks to the push given by a raise of 19.1% in lead production. For the year, mining decreased 1.5%, while lead production grew 13.3%. Los Gatos, in Chihuahua; Minera Capela in Guerrero; San Martin and Peñasquito in Zacatecas and production by Fresnillo aided in the growth seen by the bluish gray metal. Production rates from other metals show increments and decrements to the following tenor During December: Gypsum +14.4%, zinc +8.8%, silver +7.8%, sulphur +5.2%, coke -25.8%, iron pellets -7.3%, coal -5.2%, gold -2.2%, copper -0-8%. For the year: Overall -1.5%, gold -10.2%, silver +1.1%, copper +4.8%, zinc +7.0%, lead +13.3%, iron pellets -0.5%, coke -16.0%, Sulphur -14.7%, fluorite -5.0%, coal -2.0%, gypsum -0.6%. The trend reflects years of decreasing investment in mining, although some new developments might increase the production on lead, zinc, silver and copper.
  • The Future of the Mexican Mining Industry seminar was held during the PDAC convention in Toronto, Canada. Four environmentally focused conferences opened the seminar in which a dialogue table was set with the Mining Sub Secretary Francisco Quiroga, several governors, union leaders, mining company executives, financial analysts and congressmen.
  • Lithium exploration projects in Mexico: There are more than 20 lithium exploration projects in the country, most within Sonora, Zacatecas, San Luis Potosí, Baja California and Coahuila. The most advanced is Bacanora Lithium’s Sonora project in Bacadehuachi, but other interesting properties are comprised by OrganiMax’s Salar La Salada in Zacatecas, and Salar Santa Clara and Salar Caliguey in San Luis Potosí; Litio Infinito’s project in Sonora, adjacent to the ground held by Bacanora Lithium and One World Lithium’s Salar del Diablo project in Baja California.
  • Industrias Peñoles intends to change the fuel used by its mining trucks fleet in a mine in Sonora. The change involves modifying the trucks to run on LP gas instead of diesel (Milpillas mine?).

ON EXPLORATION

  • Chesapeake Gold Corp. announced it has an option to acquire El Duraznito project in Durango, which is 18 Km East of First Majestic’s San Dimas mine. Mineralization is represented by quartz veins and quartz bearing breccias along 1,500 m of longitude and 300 m vertically. Those structures are parallel to the San Dimas veins, and appear to be also of epithermal low sulfidation character. A series of rock chip samples on sub-parallel quartz bearing breccias have returned 45 m @ 1.6 gpt Au, 16 gpt Ag; 30 m @ 3.9 gpt Au, 48 gpt Ag; 23 m @ 1.8 gpt Au, 58 gpt Ag; 15 m @ 3.1 gpt Au, 24 gpt Ag. Channel samples on quartz veins returned 10 m @ 4.8 gpt Au, 464 gpt Ag; 2.5 m @ 3.9 gpt Au, 756 gpt Ag; 2.5 m @ 9.7 gpt Au, 343 gpt Ag; 3.0 m @ 2.8 gpt Au, 113 gpt Ag.
  • Azucar Minerals Ltd. released results from its ongoing program at El Cobre project in Veracruz. Core length intercepts released include: 158.0 m @ 0.64 gpt Au, 0.26% Cu (including 19.6 m @ 0.83 gpt Au, 0.28% Cu); 71.7 m @ 0.16 gpt Au, 0.12% Cu (including 17.7 m @ 0.04 gpt Au, 0.38% Cu); 179.5 m @ 0.20 gpt Au, 0.22% Cu (including 39.95 m @ 0.15 gpt Au, 0.63% Cu and 17.55 m @ 0.48 gpt Au, 0.32% Cu); 112.2 m @ 0.36 gpt Au, 0.26% Cu; 442.2 m @ 0.44 gpt Au, 0.23% Cu (including 158.0 m @ 0.64 gpt Au, 0.26% Cu); 197.5 m @ 0.32 gpt Au, 0.24% Cu (including 16 .0 m @ 0.25 gpt Au, 0.81% Cu); 193.5 m @ 0.27 gpt Au, 0.14% Cu.

ON MINING

  • United States Antimony Corp. reported the successful start up of the Los Juarez Au and Ag production at Los Juarez, Queretaro. Detailed mapping delineated jasperoid silica-rich mineralized pipes over an E-W strike length of three kilometres, and a maximum width of one kilometre. Highlighted individual 1.0-1.5 m assays on drill holes range from trace to 25 gpt Au, 13 to 451 gpt Ag and 0.08 to 1.19% Sb. With a mean grade of 1.09 gpt Au, 102 gpt Ag, 0.65% Sb, and recovery rates of 90% Au, 85% Ag, 70% Sb. The ore is being treated by flotation mill, flotation mill and caustic leach and flotation mill tailings and cyanide leach.
  • Mexus Gold US. Announced it is now producing gold daily at its Santa Elena mine in Sonora (not to mistake with First Majestic’s Santa Elena mine, also in Sonora). Mexus plans to produce 5 to 7 Oz Au daily, and then increase to 10 Oz Au per day by the end of the month.
  • Bacanora Lithium Plc. provided financial results for the second half of 2019. During the period Bacanora concluded an investment and offtake agreement with Ganfeng Lithium Co, Ltd., raised UK$14.4 M and retained a US$150 M conditional senior debt facility. Engineering work has continued, while full development capital for construction is being pursued.
  • Gold Resource Corp. presented production figures for last year, including figures from its Oaxaca mining unit. During the year, 29,435 Oz Au, 1.72 M Oz Ag, 1,859 tonnes Cu, 2,286 tonnes Pb, 5,734 tonnes Zn were produced. Apporting to that production, 629 .9 K tonnes were milled @ 1.73 gpt Au, 82 gpt Ag, 0.38%Cu, 1.88% Pb, 4.64% Zn at the Arista mine, part of the Oaxaca Mining Unit.
  • Fresnillo Plc. announced financial results for the year 2019. Silver and gold production diminished 11.6% and 5.1% respectively during the period. Total silver production was 47.4 M Oz, with most of such production coming from Saucito (15.9 M Oz Ag), Fresnillo (24.8 M Oz Ag), San Julián DOB (7.4 M Oz Ag), Ciénega (5.3 M Oz Ag) and San Julián veins (4.2 M Oz Ag). A total of 848 K Oz Au were produced, mostly from Herradura (496 K Oz Au), Noche Buena (105 K Oz Au), Saucito (72 K Oz Au), San Julián veins (62 K Oz Au), Ciénega (62 K Oz Au), Fresnillo (46 K Oz Au). The company also produced 49 K tonnes of lead, from Saucito (19.7 K tonnes Pb), Fresnillo (19.5 K tonnes Pb), Ciénega (4.4 K tonnes Pb ), San Julián (5.4 K tonnes Pb), and 78.6 K tonnes of zinc from Fresnillo (26.3 K tonnes Zn), Saucito (25.6 K tonnes Zn), San Julián (19 K tonnes Zn), Ciénega (7.6 K tonnes Zn). Cash cost per silver ounce varied between ($0.2) and $7 per Oz Ag on the different mining units, and gold between $818.6 and $847.8 per Oz Au.
  • Premier Gold Mines Ltd. released operating results for the quarter ending on December of 2019 and full year 2019 results, including figures from its Mexican operations. At the Mercedes mine in Sonora, 667.7 K tonnes were mined @ 2.91 gpt Au, 26 gpt Ag, recovering 95.8% Au, 34.0% Ag, to produce 59,901 Oz Au, 191.3 K Oz Ag. Co-product cash cost was $1,034 per Oz, and co-product AISC $1,263 per Oz Au. For the full year total capital expenditures were $18.8 M, focusing on underground mine infrastructure and development, as well as exploration and replacement of old mining equipment.

ON FINANCING

  • One World Lithium Inc. announced the amendment of the terms of 14.5 M outstanding common share purchase warrants, previously issued by the company (Salar del Diablo, Baja California).
  • Consolidated Zinc Ltd. entered into unsecured loan facilities with CZL major shareholders, the Copulos and Retzos Groups. The loan facilities are for A$400 K at an interest rate of 10% per annum, repayable by the end of June 2021 (Plomosas, Chihuahua).
  • Alamos Gold Inc. declared a quarterly dividend of US$0.015 per common share and introduced a dividend reinvestment and share purchase plan (Mulatos, Sonora).
  • Premier Gold Mines Ltd. closed its previously announced public offering for gross proceeds of $38 M, paying a 5% cash commission, with a reduced 2.5% cash commission on the Orion purchase (check note for further details) (Mercedes, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Mag Silver Corp. announced results from the 2019 28-hole program with 33,864 m of drilling on the Juanicipio JV property in Zacatecas. The latest exploration results confirm and expand the wide, high-grade mineralization in the Valdecañas Deep zone and the Anticipada vein, as well as confirming and expanding the Venada vein, and the discovery of the NE trending Valentina and Venadas II veins through drilling and development. Exceptional true width intercepts comprise: 5.7 m @ 3,884 gpt Ag, 8.4 gpt Au, 6.5% Pb, 9.7% Zn, 0.3% Cu; 21.1 m @ 129 gpt Ag, 1.7 gpt Au, 3.5% Pb, 7.8% Zn, 0.2% Cu; 21.2 m @ 147 gpt Ag, 1.2 gpt Au, 3.9% Pb, 8.8% Zn, 0.3% Cu; 1.0 m @ 187 gpt Ag, 10.6 gpt Au, 1.3% Pb, 4.4% Zn; 2.5 M @ 918 gpt Ag, 1.8 gpt Au; 1.2 m @ 279 gpt Ag, 0.7 gpt Au; 0.7 m 1,216 gpt Ag, 3.6 gpt Au.

Gold Resource Corp. updated annual reserve estimates, including figures for its Mexican operations. At the Oaxaca Mining Unit that comprises the Arista and the Mirador mine, 2.83 M tonnes @ 1.97 gpt Au, 122 gpt Ag contain 179,300 Oz Au and 11.1 M Oz Ag in proven and probable reserves.Gold Resource Reserve table 20192Gold Resource Corp Resource table 20191

  • Aura Minerals Inc. provided mineral reserves and resources estimates to the end of 2019, including figures for its Aranzazu mine in Zacatecas.Aranzazu Reserves 20191
  • SilverCrest Metals Inc. released metallurgical test results with increased precious metals recoveries at Las Chispas property in Sonora. After nine months of intensive metallurgical tests involving all veins, the results show an increase on recoveries to 96.1% Au and 93.9% Ag. The design criteria envisages a single stage crushing, a sag mill single stage, gravity recovery of 40% to 50% precious metals, leach recovery for gravity concentrate on a 96 hours leach circuit and leach recovery for gravity tails on 96 hours leach circuit.

ON DEALS AND CORPORATE ISSUES

  • Mithril Resources Ltd. presented the 2019 end of year report. The most significant event is the ongoing acquisition of Sun Minerals Pty Ltd., which holds an option on the Copalquin project in Durango. The said acquisition is expected to be completed during the present quarter, with field work and drilling to be undertaken shortly after, as the statutory permits have already been obtained.
  • Oroco Resource Corp. closed the acquisition of the balance of the ownership of Altamura Copper Corp., giving the company 100% control of the Santo Tomás porphyry copper project in Sinaloa. The Company holds a 56.7% interest in 1,172.9 ha core concessions of the project, and may increase the interest up to an 81% interest with an investment of up to CAD$30 M. Oroco also holds a 77.5% interest in 7,807.9 ha of mineral concessions surrounding and adjacent to the core concessions.
  • Alio Gold Inc. entered into a definitive share purchase agreement to sell Molimentales del Noroeste S.A. de C.V., which owns 100% interest on the San Francisco mine in Sonora, with Magna Gold Corp.. Under the agreement Alio Gold will receive 9.74 M shares of Magna and an additional $5M in cash a year from the closing.
  • Sable Resources Ltd. announced the appointment of Dr Ruben Padilla to the position of company president & CEO (Margarita, Chihuahua).
  • Equinox Gold Corp. and Leagold Mining Corp. received the clearance decision “from the Comisión Federal de Competencia Económica (“COFECE”) with respect to the pending merger between Equinox Gold and Leagold. COFECE approval was the final government agency approval required before completing the merger, which is anticipated to occur in the second week of March” (Los Filos, Guerrero).
  • GR Silver Mining Ltd. announced the signing of the definitive binding share purchase agreement to acquire all the shares of Minera La Rastra S.A. de C.V. from First Majestic Silver Corp., and the ownership of the Plomosas Silver project in Sinaloa. The 8,515 ha project includes the old Plomosas mine, four targets at the drill/resource stage and 16 exploration targets and and exploration database with more than 500 historical drill holes.
  • Prime Mining Corp. signed a long-term surface access agreement on its Guadalupe de Los Reyes property in Sinaloa. The agreement signed with the Ejido Tasajera, envisions an initial 15-year term that can be extended for another 15 years. Under the terms of the agreement US$38.3 K were paid on signature, with a following payment of US$20K on year four and US$30 K on year five. If construction begins prior to the fifth year, the annual payment increases to US$30 K, and the payment under commercial production to US$200 K.
  • Chesapeake Gold Corp. announced it has an option to acquire El Duraznito project in Durango, which is 18 Km East of First Majestic’s San Dimas mine. Chesapeake is to pay US$228 K in instalments to two concession owners for three years to gain a 60% participation at El Duraznito, and US$500 K to obtain an additional 20%. At the start of commercial production Chesapeake is to make a final payment of US$550 K to the vendors.
  • Fortuna Silver Mines, Inc. Provided an update on the status of the legal proceedings related to a disputed royalty on one of its extracting mining concessions at the San Jose mine in Oaxaca. Fortuna initiated legal proceedings against the Dirección General de Minas (DGM) to contest the procedure taken by the DGM to cancel one of its mining concessions if the disputed royalty plus VAT is not paid before March 15, 2020. A permanent stay of execution (amparo) was granted, but the final ruling might take months and the company might be required to pay the disputed royalty.

ON SOCIAL RESPONSIBILITY

  • INFONAVIT executives from the Zacatecas Direction provided the Peñasquito mine with two awards for its excellent compliance with the payments of dues to the housing fund of its workers.

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

On the image below: Hydrothermal breccia sealed by silica in a thermal spring in Baja California, picture by Jorge Cirett.

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

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By Jorge Cirett

During the 8th week of the year (February 17th to February 23rd, 2020), at least 35 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, the Sonora Economy Secretariat remarked that several investments are to strengthen the mining industry in 2020. Camimex pointed that mining companies are to invest more than US$200 M in exploration during 2020. Grupo Mexico is to return to the government the mining concession on which the disaster struck Pasta de Conchos mine is located. Camimex is to pursue its “zero accidents” goal. ON EXPLORATION, in Sonora, Colibri Resources has received the permit to drill at the Evelyn project; Riverside Resources reported on field work and sampling at Los Cuarentas; Aloro received a new drilling permit for its Los Venados project. In Chihuahua, Kootenay Silver commenced the phase II drilling program at its Columba project. In Durango, Commander Resources reported on a geophysical survey at Pedro’s project. In Zacatecas, Excellon Resources informed on the exploration status of its Evolución project. In Guanajuato, Vangold secured land access and land use permits on its El Pinguico project. In Jalisco, GoGold Resources launched a second exploration project at Los Ricos District in Jalisco: Monte El Favor.  ON MINING, Starcore International, Americas Gold and Silver,  Torex Gold, First Majestic Silver, Pan American Silver and Fortuna Silver reported Q4 and full year 2019 financial and/or production results. ON FINANCING, Hecla Mining is to redeem $475 M of 7.25% senior notes. Canuc Resources, San Marco Resources and Ridgestone Mining closed various stages of non-brokered private placements for $850 K, C$784.8 K and $715.2 K, respectively. Kootenay Silver is now on the 2020 TSX Venture 50tm. ON RESOURCES AND DEVELOPMENT, Golden Minerals announced promising results from metallurgical test work on concentrates from its Velardeña property. Excellon informed on exploration results on its Platosa mine in Durango. SilverCrest Metals announced a new discovery of a high-grade zone on another vein of the Babicanora area of its Las Chispas property in Sonora. Coeur Mining and Alamos Gold reported mineral reserves and resources to the end of 2019, including figures from Palmarejo (Chihuahua) and the Mulatos District (Sonora), respectively. Goldplay Exploration provided an update on drilling at San Marcial, Sinaloa. ON DEALS AND CORPORATE ISSUES, Tamino Minerals filed a law suit against an individual, in Sonora. Telson informed on the resignation of its CEO, Jose Antonio Berlanga, and the appointment of Ralph Shearing as interim CEO. Sonoro financing discussions were interrupted by the Coronavirus outbreak in China. Mexican Gold and New Found Gold terminated their binding agreement for the acquisition of New Found Gold. GoGold entered into an agreement to acquire The Monte del Favor project in the Los Ricos District in Jalisco. ON SOCIAL RESPONSIBILITY. Fresnillo PLC supports three teams in a robotic regional fair. Grupo Mexico supports social and infrastructure projects in Sombrerete, Zacatecas, with over 300 activities that benefit 3,00 inhabitants. Fresnillo PLC and Frisco are among the companies that integrate the Environmental Protection Club in Zacatecas.).

ON MEXICO ISSUES

  • Jorge Vidal, head of Sonora’s Secretaría de Economía (Economy Secretariat), stated that several investments are to strengthen the mining industry during 2020 in Sonora. He pointed that the investment by Bacanora minerals in the lithium project in Bacadehuachi is one of these, and another one is the investment of the Buenavista zinc project in Cananea, which is to generate 500 jobs with the investment of MXN$350 M pesos (US$18.8 M).
  • Mining companies are to invest more than US$200 M in exploration in 2020. Fresnillo is to reduce its exploration budget to US$135.1 M, from US$150 M on 2019, with about half of those funds to be used in the conversion of resources to reserves. Pan American Silver focuses on brownfield exploration with a budget of US$20 M for the year, on which La Colorada Skarn is to see a 44,000 m drilling program. First Majestic has an exploration budget of US$28.2 M, to be spent in San Dimas (Durango), Santa Elena (Sonora), La Encantada(Coahuila), La Parrilla (Durango) and Del Toro (Zacatecas). Torex Gold is to conduct an infill drilling program that will cost US$13 M on its Media Luna project (Guerrero). Agnico Eagle is to spend US$33.9 M in exploration during 2020, highlighting the funding of the Santa Gertrudis project in Sonora with US$10.4 M and a 42,000 m drilling program at its Pinos Altos mine in Chihuahua.
  • Grupo Mexico is to return to the government the mining concession on which the Pasta de Conchos mine is located. The move is in response to the presidential request to facilitate the retrieval of the remains of over 65 miners deceased in 2006 on the mine located in Coahuila.
  • The Cámara Minera de México (Camimex) vowed to pursue the “zero accidents” goal, pointing that in 2018 the associated companies reported an accident rate of 1.63, which is 3.7% lower than in 2017, and below the national average of 2.04 registered by the Instituto Mexicano del Seguro Social (IMSS).

ON EXPLORATION

  • Excellon Resources Inc. informed on exploration of its 45,000 hectares Evolución property in Zacatecas. Highlights include the expansion of the Lechuzas zone along strike and down dip, and broad intersections of Ag-Pb-Zn, like: 18.7 m @ 27 gpt Ag, 0.8% Pb, 1.1% Zn, 0.1 gpt Au (103 gpt AgEq), including 2.0 m @ 105 gpt Ag, 3.5% Pb, 4.2% Zn, 0.3 gpt Au (416 gpt AgEq); 1.5 m @ 290 gpt Ag, 6.9% Pb, 5.9% Zn, 0.2 gpt Au (779 gpt AgEq); 4.5 m @ 51 gpt Ag, 1.9% Pb, 2.9% Zn, 0.1 gpt Au (244 gpt AgEq); 3.3 m @ 55 gpt Ag, 1.1% Pb, 1.9% Zn (172 gpt Ag). Excellon plans to incorporate all recent work into an updated mineral resource estimate for the project.
  • Kootenay Silver Inc. has commenced a 7,000 m phase II core drilling program at its Columba project in Chihuahua. The follow up drilling will focus on the results of last year’s 41-hole, 6,853 m program which targeted six different veins on the property. Highlighted results from that program comprise: 1.15 m @ 775 gpt Ag; 4.83 m @ 230 gpt Ag; 2.90 m @ 519 gpt Ag; 11.0 m @ 133 gpt Ag (including 5.0 m @ 245 gpt Ag); 2.1 m @ 699 gpt Ag; 1.75 m @ 755 gpt Ag, 1.16 gpt Au; 6.25 m @ 244 gpt Ag; 11.5 m @ 415 gpt Ag (including 4.0 m @ 721 gpt Ag); 4.63 m @ 301 gpt Ag; 39.9 m @ 159 gpt Ag (including 7.45 m @ 650 gpt Ag).
  • Colibri Resource Corp. informed it has received the required drilling permits for its Evelyn project in Sonora. Drill pad construction and other required infrastructure are to commence immediately, followed by drilling.
  • Commander Resources Ltd. reported results from a 70 line-km induced polarization survey (IP) at the Pedro’s project in Durango. The 1,750 ha project was acquired in 2006 from Bearing Resources Ltd. Hematite stained silica rich ridges of angular chalcedony fragments and silicified sedimentary rocks within an angular coarse breccia comprise the outcrops within the Ahuichila conglomerate, within a soil anomaly 4 Km by 1 km and rock chip samples of up to 2.3 gpt Au. Past drilling focused on a Carlin target intercepted up to 10.5 m @ 0.51 gpt Au in oxidized silicified conglomerate.
  • Vangold Mining Corp. has secured a surface land access agreement, and a surface land use agreement for its El Pinguico mine in Guanajuato. The 15-year land access agreement was signed with the Ejido Calderones, providing a short access route to the project, whereas the land use permit was signed with a local land owner for 89.6 hectares.
  • Riverside Resources Inc. reported on field work and sampling at its Los Cuarentas project in Sonora. Selective rock sampling from dumps, float, channel and rock chips returned five of sixteen samples with more than 5 gpt Au: 25.7 gpt Au, 4 gpt Ag; 10.2 gpt Au, 9 gpt Ag; 6.8 gpt Au, 65.1 gpt Ag, 6.27 gpt Au, 120 gpt Ag; 5.3 gpt Au, 6 gpt Ag; 5.1 gpt Au, 75 gpt Ag. Three primary targets have been identified for a prospective drill program in 2020: Santa Rosalia, Santa Rosalia Sur and El Sombrero.
  • GoGold Resources Inc. launched a second exploration project located on the Los Ricos District, called Monte del Favor, in Jalisco. Gogold now owns 35 concessions covering 22,493 hectares in a 35 km trend. The new concessions come with a legacy database of 50 drill holes with highlighted intercepts of: 24.4 m @ 6.4 gpt Au, 1,629 gpt Ag; 28.3 m @ 3.1 gpt Au, 150 gpt Ag; 6.1 m @ 1.1 gpt Au, 201 gpt Ag; 6.1 m @ 2.8 gpt Au, 174 gpt Ag; 20.3 m @ 0.4 gpt Au, 225 gpt Ag.
  • Aloro Mining Corp. informed a new drilling permit has been granted by SEMARANT (The Secretariat of Environment and Natural Resources) for its Los Venados project in Sonora. The permit granted the drilling of 15 holes and the construction of up to 3.38 Km of drill roads. Drilling is to focus in the south area of the project, where a hole cut 32 m of blind strong silicic alteration with brecciated vuggy silica an sulfides, with 7.6 m @ 1.13 gpt Au, 32 gpt Ag.

ON MINING

  • Starcore International Mines Ltd. released production results for the quarter ending on January 31, 2020. In its San Martin mine in Queretaro, 58.3 K tonnes were milled @ 1.84 gpt Au, 30 gpt Ag, recovering 90.1% Au, 50.9% Ag, to produce 3,425 Oz AuEq.
  • Americas Gold and Silver Corp. presented production figures from 2019 and guidance for 2020 of its mining operations, including figures from its Cosalá property in Sinaloa. At Cosalá, 613.8 K tonnes were processed @ 50 gpt Ag, to produce 572 K Oz Ag, 43.3 M Lb Zn and 16.4 M Lb Pb, or 4.68 M Oz AgEq, at cash cost ($18.31) and AISC ($10.90) per Oz Ag produced. Improved access to the Upper Zone at the San Rafael mine will tap higher silver grades in 2020.
  • Torex Gold Resources Inc. reported fourth quarter and fill year 2019 financial and operating results. For the last quarter of 2019, Torex Gold produced 121,151 Oz Au at its El Limón-Guajes mine in Guerrero, at cash cost $617 per Oz and all-in sustaining cost of $767 per Oz, generating EBITDA of $102.2 M and repaying $82.5 M of debt during the period. For the year, Torex produced 454,811 Oz Au at cash cost of $619 per Oz and an AISC of $805 per Oz Au, generating EBITDA of $330.3 M and repaying $164.4 M of debt. Total debt now stands at $174.9 M, while cash at hand is $161.8 M. The Media Luna project resource estimate was updated to 2.24 M Oz AuEq at a grade of 5.5 gpt Au in the indicated category and 4.23 M Oz AuEq at 4.23 gpt Au in the inferred category.
  • First Majestic Silver Corp. announced financial results for the Q4 and year 2019. During the quarter 626.6 K tonnes were processed to produce 3.35 M Oz Ag, 33,176 Oz Au, 0.9 M Lb Pb, or 6.23 M Oz AgEq at cash cost $3.37 per Oz and an AISC of $12.25 per Oz. The production figures for the year are in the table below. The company ended 2019 with cash and cash equivalents of $169 M. First Majestic production 20191
  • Pan American Silver Corp. reported financial results for the year 2019, including figures from its Mexican operations. At La Colorada mine in Zacatecas 768.7 K tonnes were milled @ 361 gpt Ag, 3.10% Zn, 1.65% Pb to produce 8.2 M Oz Ag, 4.61 K Oz Au, 20.97 K tonnes Zn, 11.15 K tonnes Pb, at cash cost $4.30 and AISC of $5.00 (net of by-products). At Dolores, in Chihuahua, 6.78 M tonnes were place on the heaps @ 38 gpt Ag, 0.60 gpt Au, to produce 5.1 M Oz Ag, 117.6 K Oz Au at a cash cost of $3.09 and an AISC of $15.45.
  • Fortuna Silver Mines, Inc. provided 2020 production, cost and capital expenditure guidance for 2020, including figures for its Mexican operations. At San Jose, in Oaxaca, the company aims to produce between 6.6 and 7.3 M Oz Ag, and between 41 and 45 K Oz Au, at a cash cost of US$65.6 to US$72.5 per tonne, and an AISC between US$9.6 to US$11,7 per Oz AgEq. The plan is to process 1.06 M tonnes @ 223 gpt Ag, 1.39 gpt Au, with a capital investment of US$17.1 M, including US$12.2 M for sustaining capital expenditures and US$4.9 M for brownfields exploration programs which include 17,600 m of drilling.

ON FINANCING

  • Hecla Mining Co. announced its agreement to sell $475 M aggregate principal amount of 7.25% senior notes. The notes will mature in February 2028, with the company intending to use the net proceeds together with cash on hand to redeem all of its outstanding 6.875% senior notes due 2021. (San Sebastián, Durango).
  • Canuc Resources Corp. closed a non-brokered private placement for gross proceeds of $850 K, with three officers of the company participating (San Javier, Sonora).
  • San Marco Resources Inc. closed its over-subscribed non-brokered placement, raising C$784.8 K (Espiritu, Sonora).
  • Ridgestone Mining Inc. closed the first tranche of the non-brokered private placement to raise $715.2 K on gross proceeds (Rebeico, Sonora).
  • Kootenay Silver Inc. has been recognized in the 2020 TSX Venture 50tm as one of the top 50 performing companies on the TSX Venture Exchange (Columba, Chihuahua).

ON RESOURCES AND DEVELOPMENT

  • Golden Minerals Co. announced promising results of metallurgical test work on pyrite-arsenopyrite flotation concentrates from its Velardeña properties in Durango. “Gold and silver recoveries of 91% and 92%, respectively, were obtained from cyanide leaching of the bio-oxidized concentrate samples. BIOX* achieved 93% oxidation on the concentrate sample in batch tests, which the Company believes should translate to a 5 to 6-day retention time in a commercial bio-oxidation plant”.
  • Excellon Resources Inc. informed on exploration results at its Platosa mine in Durango. Surface drilling of the NE-1S manto returned high-grade intersections, like 6.6 m @ 1,178 gpt Ag, 6.7% Pb, 8.4% Zn, 0.2 gpt Au. A large hydrothermal system was discovered 11 km from the Platosa mine at the Jaboncillo target, where drilling is aimed to start in the first half of 2020.
  • SilverCrest Metals Inc. announced a new discovery and additional drill results from the Babicanora Norte vein at its Las Chispas property in Sonora. The discovery drill hole intercepted 2.0 m (tw) @ 6,418 gpt AgEq on a faulted extension that received the name of Area 200, on the Babicanora Norte vein, which is now the highest-grade vein in the project. The initial high-grade footprint of this zone is 500 long by 125 m in height, on the vein that is now known for more than 2.0 km. The area 200 shows an average estimated true width (tw) of 1.5 m @ 16.11 gpt Au, 2,166 gpt Ag (3,375 gpt AgEq). Highlighted results for this press release comprise 1.4 m @ 90.22 gpt Au, 9,422 gpt Ag (16,189 gpt AgEq); 2.4 m @ 45.71 gpt Au, 5,577 gpt Ag (9,006 gpt AgEq); 1.6 m @ 75.78 gpt Au, 7,662 gpt Ag (13,345 gpt AgEq).
  • Coeur Mining Inc. reported 2019 mineral reserves and resources, including figures from its Mexican operations. At Palmarejo, in Chihuahua, infill drilling helped replace mining depletion. Proven and probable reserves stand at 11.67 M short tonnes (st) @ 1.83 gpt Au, 135 gpt Ag; measured and indicated resources stand at 8.76 M st @ 1.49 gpt Au, 122 gpt Ag and inferred resources of 6.47 M st @ 1.77 gpt Au, 127 gpt Ag. These amount to 693 K Oz Au, 5.6 M Oz Ag as reserves, 425 K Oz Au, 34.5 M Oz Ag as measured and indicated resources and 367 K Oz Au, 26.3 M Oz Ag as inferred resources.
  • Minera Peña Colorada informed that the Peña Colorada mine in Colima received the visit of PROFEPA (Procuraduría Federal de Protección al Ambiente) and SEMARNAT (Secretaría de Medio Ambiente y Recursos Naturales) personnel to review the compliance of the company on the different permits it has received.
  • Alamos Gold Inc. Reported mineral reserves and resources to year end 2019, including figures from its Mexican Operations. Mineral reserves at Mulatos decreased by 154 K Oz to 1.56 M Oz, with mining depletion partially offset by an 81 K Oz increase at La Yaqui Grande. The exploration budget was increased to $7 M with 14,000 m of drilling planned around near mine targets as well as at La Yaqui Grande and El Carricito. A number of regional exploration targets were identified with the aid of a VTEM survey carried out in 2018.Alamos Gold Mineral Resources to 201911
  • Goldplay Exploration Ltd. provided an update on exploration and drilling of its San Marcial project in Sinaloa. The last holes of 2019 returned 28.7 m @ 92 gpt Ag, including 13.75 m @ 154 gpt Ag in the Faisanes target. At the Guacamayo target 0.60 m @ 138 gpt Ag, 0.56 gpt Au, confirm mineralization 30 m east of the current resource area. Due diligence has commenced on the potential acquisitions of the Plomosas (First Majestic Silver Corp.) and La Trinidad (Mako Mining Corp.).

ON DEALS AND CORPORATE ISSUES

  • Tamino Minerals Inc. has filed a law suit against an individual in Sonora. (El Volcán, Sonora).
  • Newmont Corp. appointed Jim Cooper as General Manager of the Peñasquito unit in Zacatecas.
  • Telson Mining Corp. informed its Chief Executive Officer and member of the Board of Directors, Jose Antonio Berlanga, has resigned due to personal reasons. Mr. Ralph Shearing has been appointed as Interim Chief Executive Officer for the company (Campo Morado, Guerrero).
  • Sonoro Metals Corp. informed discussions regarding debt finance and engineering, procurement and construction contracts with China-based EPC companies has been postponed due to the COVID-19 outbreak (Cerro Caliche, Sonora).
  • Mexican Gold Mining Corp. announced, along New Found Gold Corp., that they have mutually terminated the binding agreement to acquire all of the issued and outstanding shares of NFGC (Las Minas, Veracruz).
  • GoGold Resources Inc. entered into an agreement to acquire a second project located on the Los Ricos District, called Monte del Favor, in Jalisco. The agreement is to acquire 49% of 5 concessions in consideration for US$225 K, and an option to acquire the remaining 51% by paying US$210 K on the second anniversary. The seller will retain 1% NSR on the property, which the company may repurchase by paying US$1 M.

ON SOCIAL RESPONSIBILITY

  • Fresnillo PLC supports science, technology and youthful innovation. As part of the regional robotic fair “FIRST” on the La Laguna region, Fresnillo is to support three teams. The sponsored teams are from Turuachi, Chihuahua, Ciénega de Nuestra Señora, Durango and Fresnillo, Zacatecas. One other team from Caborca, Sonora, is to participates in an international competition in Arizona.
  • Grupo Mexico supports social and infrastructure projects in Sombrerete, Zacatecas. Every year the company performs 300 activities that benefit 3,000 inhabitants. The social programs and productive activities take place in Sombrerete, San Martin, Villa Insurgentes, Ojo de Agua, Charco Blanco, Santa Rita and José de Félix communities. Also, a seed-capital program has financed 29 projects to benefit 20 schools.
  • Peñoles, Fresnillo PLC, and Grupo Frisco among the companies to integrate the Environment Protection Club in Zacatecas. More than 25 companies are to be members of this club, promoted by the State governor, and that will also have universities (Benemérita Universidad Autónoma de Zacatecas and Instituto Politécnico Nacional), the Secretaría de Agua y Medio Ambiente and federal authorities as its memebers.

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

On the image below: The old train bridge between Nacozari and the Pilares mine, in Sonora, picture by Jorge Cirett

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The Mining and Exploration News in Mexico: Highlights on the Second Week of December, 2019

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By Jorge Cirett

During the 50th week of the year (December 9th to December 15th, 2019), at least 18 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, Bacanora Minerals lithium deposit in Sonora is considered the biggest resource of the metal in the world, according to Francisco Quiroga, Mining sub-secretary. Camimex calls to maintain the competitivity of the mining sector, as it is being threatened by a environmental tax proposal. Newmonts Goldcorp´s Peñasquito mine in Zacatecas is to lift Mexican gold production in 2020, according to BNamericas. Camimex invited the secretary of the environmental agency (SEMARNAT), Victor Manuel Toledo to visit one of the mining units, for him to review what sustainable mining is. He will also be visiting Hermosillo and Ures, meeting with authorities of the municipalities affected by a toxic leak on 2014. ON EXPLORATION, in Chihuahua, Mammoth Resources updated on exploration efforts by partner Centerra at its Tenoriba project; Kootenay Silver released good drilling results on its Columba property. ON MINING, Alamos Gold and Golden Minerals released results for the third quarter 2019. GoGold released results on the year ending in September 2019. ON FINANCING, Advance Gold closed the second tranche of its private placement for gross proceeds of $42 K. Azure Minerals announced the receipt of A$467 K of VAT back taxes (dating to 2016) from the government. Tamino Minerals is planning to become “Pink Current” very soon on the OTC. Odyssey Marine Exploration obtained commitments for up to $4.2 M.   ON RESOURCES AND DEVELOPMENT, Candelaria Mining released results on 15 new holes from the Mirador mine at the Altagracia project in Oaxaca. Pan American Silver announced an initial resource estimate, on the polymetallic  skarn deposit at La Colorada, of 72.5 M tonnes @ 44 gpt Ag, 0.17% Cu, 2.02% Pb, 4.40% Zn, remaining open in most directions, and containing over 100 M Oz Ag. Defiance Silver updated on exploration efforts at its San Acacio project in Zacatecas and at its Tepal project in Michoacán. Prime Mining released surface road cut and trench assays from its Guadalupe de los Reyes project in Sinaloa. ON DEALS AND CORPORATE ISSUES, Tamino Minerals has signed a LOI on the Ofelia property, in Sonora. Discovery Metals informed Eric Sprott now owns 21% interest in the company. Newmont Goldcorp announced a deal with the Cedros community on water resources. ON SOCIAL RESPONSIBILITY. A mining gathering was held in Banamichi, Sonora. The Asociación de Mineros de Sonora celebrated its 40th anniversary. The first “Comité de Desarrollo Regional para las Zonas Mineras” was created in Sonora, to recommend the use of the Mining Fund in certain infrastructure projects in mining areas. Dr. Vagón, Grupo Mexico’s health itinerant clinic was at La Junta, and soon to be moved to the nearby Ciudad Cuauhtémoc, both in Chihuahua. The Consorcio Minero Benito Juárez and the Fundación Bécalos Televisa delivered 120 scholarships to excellency students. A fair was held in Tayoltita, Durango, to bring awareness of the mining work and environment to inhabitants and family members of mine workers. Minera Media Luna is showing a strong support for education in Guerrero, with shcolarships, internships and support to local schools. The Sonora miners association (AMSAC) signed an agreement with the Consejo Regulador del Bacanora, to source agave saplings on its greenhouses to the agave growers. The Mexican gray wolf has left the list of extinct species in the wild, moving to the category of species on extinction risk.

ON MEXICO ISSUES

  • The lithium deposit in Sonora is the major project of its type in the World, according to Francisco Quiroga, Sub-Secretary of Mining, on an interview by a journalist known country wide. He cautioned on not hurrying up to celebrate, as the lithium still has to be extracted, and be metallurgically separated of the other minerals present in the ore (In this project, unlike other, lithium is contained in a clay). This project is assumed to have 243 M tonnes of lithium, surpassing the Thacker Pass deposit in Nevada, the second lithium deposit, with reserves of 179 M tonnes of lithium. The deposit is co-owned by the English company (not Canadian, as stated in the note) Bacanora Lithium and the Chinese Ganfeng Lithium, and located in the Bacadehuachi municipality (tens of kilometers from the Campo Verde Protected Natural Area and the Chihuahua border).
  • Camimex calls for maintaining the competitivity of the Mining Sector in Sonora. The call was made by Karen Flores, Camimex head, on the first Universitary Mining Gathering held in Banamichi, Sonora. She called for a proposal to tax mining operations on environmental grounds to be repelled. Such tax would transform Sonora in one of the more expensive places to mine, in an industry that is already heavily regulated and taxed. According to the authorities, mining in 2018 provided more than 46 billion pesos (US$2.36 billion) in taxes, 9,000 billion pesos (US$461 M) in rights and more than 4,500 billion pesos (US$230 M) in resources for the Mining Fund.
  • Newmont Goldcorp’s Peñasquito mine in Zacatecas is to lift Mexican gold production in 2020, when production by other big players is to decline. The combined production by the three biggest producers in Mexico, Fresnillo, Newmont Goldcorp, and Alamos Gold should reach 1.59 M Oz Au, above the 1.22 M Oz Au mines in 2019. This is a 30% increment year on year, achievable if the companies reach their mid-point guidelines. According to BNamericas this figure is more than half the 3.15 M Oz Au to be produced by more than 20 companies in Mexico. Fresnillo’s production reached 923 K Oz Au in 2018, expects to produce 885 K Oz in 2019, 785 K Oz in 2021 and 665 K Oz in 2022; the decline motivated by the end of production at the Noche Buena mine and less production at Herradura. Meanwhile, Peñasquito expects to produce 575 K Oz Au in 2020 , and a little bit more in 2021, before production starts to decline due to lower grades. Alamos Gold expects to produce 150 – 160 K Oz Au during 2019 in Mulatos, while the Chanate mine is to produce only 5 K Oz. Minera Frisco and Agnico Eagle have seen their gold production dwindle in 2019, while Torex Gold reached 138 K Oz Au produced during the third quarter, and the company expects to sell 430 K Oz Au this year. Leagold also is to increase production at Los Filos, expecting to double on the 200 K Oz Au forecasted for this year.
  • Camimex invited Victor Manuel Toledo, secretary of the environment and natural resources (SEMARNAT) to visit one of the mining units, for him to review what sustainable mining is. Earlier in the day, in the morning presidential conference, Toledo stated that Semarnat is not against mining: “For Semarnat there is not good or bad mining, revisions have to be on a case by case basis, and confirm through inspection its adherence to norms”.
  • Victor Manuel Toledo, secretary of the environment and natural resources (SEMARNAT) is to be in Hermosillo in December 18th for the presentation of a book on the toxic leakage of 2014, and in Ures to meet with affected parties and authorities of municipalities within the Rio Sonora basin.
  • Alberto Orozco, president of the Sonora Mining Cluster, praised the visit that Victor Manuel Toledo (Environmental Secretary) is to make next week to a mining unit in Sonora. Orozco stressed the presence in Sonora of companies highly involved in the social and economic development of the producing regions in a sustainable manner. He also pointed that the Sonoran mining production is 36% of the national production, contributing with 18% of the State gross domestic product.

ON EXPLORATION

  • Mammoth Resources Corp. updated on exploration efforts at its Tenoriba project, funded by partner Centerrea Gold Inc.. Field logistics have been set, all historical geologic data compiled for Centerra’s review and interpretation and a 3D model is under preparation; all un-assayed core was sent for analysis, and the previous drill program permit is being closed, and a new one is to be prepared. Strong argillic, argillic and minor vuggy silica is present on volcanic rocks on a 4 to 6 Km long belt, with geophysics re-processing pointing to a larger target than previously envisaged, and a new 30 line-Km survey is being planned. A large soil anomaly highlights the eastern part of the corridor. Mammoth is working on community consultation processes with the two ejidos (communal lands) involved.
  • Kootenay Silver Inc. released results from six holes drilled at its Columba project in Chihuahua. Highlighted intervals comprise: 25.85 m @ 200 gpt Ag (including 11.5 m @ 415 gpt Ag, which includes 4.0 m @ 721 gpt Ag, which includes 1.9 m @ 982 gpt Ag) in silicified breccias in proximity to a lithological contact; 6.25 m @ 67 gpt Ag (including 2.09 m @ 172 gpt Ag); 3.0 m @ 314 gpt Ag (including 0.63 m @ 776 gpt Ag); 59.8 m @ 48 gpt Ag (including 9.57 m @ 146 gpt Ag); 6.63 m @ 103 gpt Ag and 1.0 m @ 124 gpt Ag. Several of the intercepts are in quartz veins in rhyolite, as quartz stockworks and as quartz-barite veins.

ON MINING

  • Alamos Gold Inc. released some production figures for 2019, including data on its Mexican production. At Mulatos, in Sonora, during the first nine months of this year 20 K tonnes per day were stacked @ 0.92 gpt Au, with a recovery of 67%, to produce 108 K Oz Au at cash cost $772 and a mine-site AISC of $861. Production from the Mulatos district is expected to total 150-160 K Oz Au in 2020, with ore mined from the Mulatos, El Victor and San Carlos open pits, as well as new production from Cerro Pelon. “A total of $7 million has been budgeted at Mulatos for exploration in 2020 which includes 14,000 m of drilling focused in the Mulatos near-mine, Carricito and La Yaqui Grande areas. A number of regional exploration targets have been identified in 2019 from the property-wide VTEM geophysical survey that was completed in late-2018. A focus of the 2020 regional exploration program will be to further evaluate these targets through systematic mapping, sampling, and ground geophysics”.
  • Golden Minerals Co. released results for the third quarter 2019. During the period Golden reported revenue of $1.9 M related to the lease of Velardeña’s oxide mill and costs of $0.6 M related to the services provided under the terms of the lease, for a net operating margin of $1.3 M. Exploration expenses were $0.9 M, Velardeña care and maintenance $0.4 M, administrative expenses $0.7 M for a total loss of $1.8 M for the quarter. Last October Golden entered into an agreement with Magellan Gold Corp. to sell the company’s option to earn a 100% interest in the Santa Maria and Las Marias exploration properties in Chihuahua. Cash and cash equivalents of $2.9 M by the end of the period.
  • GoGold Resources Inc. announced financial results for the year ending 2019. During the last quarter period the company acquired the Los Ricos project in Jalisco, for share consideration of $5.4 M and cash $4.5 M, of which $3.9 M is payable over three years. During the period the company sold 1 M Oz Ag and 8,752 Oz Ag, produced 1.78 M Oz AgEq, had income of $8.1 M at an AISC of $14.82 per Oz AgEq and cash cost $11.80 per OZ AgEq, a gain of $11.8 M on the sale of the Santa Gertrudis project royalty and has a net working capital of $13.1 M.

ON FINANCING

  • Advance Gold Corp. closed the second and final tranche of the private placement previously announced, for gross proceeds of $42 K (Tabasqueña, Zacatecas).
  • Azure Minerals Ltd. announced that the Mexican tax office has paid this week the amount of MX$6.19 M, approximately A$467 K. This is the interest component from a previous payment, bringing the total received by Azure to A$1.23 M. The payments are the result of the successful resolution of the company’s legal action for the recovery of IVA (the equivalent to GST, or VAT) dating to the 2016 financial year. A fee of 15% is payable to the legal and tax advisors involved (Alacrán, Sonora).
  • Tamino Minerals Inc. is planning to become Pink Current very soon on OTC markets, abiding to OTC disclosure lines. As of the end of September 2019, the company has 370.6 M shares, of which Pedro Villagran holds 138.8 M and Joseph Berry 33 M.
  • Odyssey Marine Exploration, Inc. obtained commitments for up to $4.2 M in funding in two separate arrangements. A group of existing shareholders is to provide up to $2 M in funding ($539 K already submitted) as advance against a portion of multi-million dollar payment Odyssey expects to receive within the next six months, related to a previously completed ship-wreck project. In addition, “a term sheet has been executed and definitive agreements are being drafted with the group that has already committed up to $6.5 million in non-recourse legal funding for the NAFTA action for up to an additional $2.2 million” (Bay of Ulloa, Baja California Sur).

ON RESOURCES AND DEVELOPMENT

  • Gold Resource Corp. released drill results from 15 holes from the Mirador mine area in the Altagracia project in Oaxaca. The Mirador mine is 16 Km NW from the Company’s Aguila project and processing facilities. Highlighted results comprise: 9.21 m @ 0.24 gpt Au, 260 gpt Ag (including 0.73 m @ 0.58 gpt Au, 1,085 gpt Au); 1.38 m @ 4.39 gpt Au, 1,455 gpt Ag; 1.08 m @ 1.81 gpt Au, 2,190 gpt Ag; 5.99 m @ 1.04 gpt Au, 206 gpt Ag (including 1.54 m @ 2.02 gpt Au, 590 gpt Ag); 3.72 m @ 1.44 gpt Au, 910 gpt Ag (including 1.0 m @ 2.84 gpt Au, 2,610 gpt Ag); 2.67 m @ 1.10 gpt Au, 354 gpt Ag.
  • Pan American Silver Corp. announced an initial mineral resource estimate for the large polymetallic deposit discovered in 2018 at La Colorada mine in Zacatecas. The inferred mineral resource is 72.5 M tonnes @ 44 gpt Ag, 0.17% Cu, 2.02% Pb, 4.40% Zn, remaining open in most directions and containing 102 M Oz Ag, 3.2 M tonnes of Zn, 1.5 M tonnes of Pb, and 121 K tonnes of Cu. Most of this mineralization is contained within a larger mineralized skarn 500 m x 600 m, between 600 and 1,700 m of depth. To make the geologic interpretation and resource estimation, 65 drill holes totalling 54,000 m of drilling were utilized.
  • Defiance Silver Corp. updated on exploration efforts to be made at its San Acacio project in Zacatecas. Targeted core re-logging and selective re-assay is on-going and will continue through 2020, while field exploration involves surface geochemistry outside the resource area, systematic underground mapping and sampling and regional targeting are carried out.
  • Defiance Silver Corp. announced OreQuest has been planning an exploration program at Tepal, in Michoacan. The aim is to follow up on high-grade drill results as the 1.42 m @ 25 gpt Au, 565 gpt Ag of last year campaign, which is coincidental with highly anomalous surface geochemistry and an untested chargeability anomaly.
  • Prime Mining Corp. released results from surface exploration at it Los Reyes property in Sinaloa. The trenching program has an advance of 25% with highlighted results of 5 m @ 1.0 gpt Au, 11 gpt Ag; 10.5 m @ 2.0 gpt Au, 18 gpt Ag; 16.5 m @ 2.5 gpt Au, 40 gpt Ag; 36.0 m @ 1.84 gpt Au, 13 gpt Ag; 34.5 m @ 4.2 gpt Au, 21 gpt Ag; 13.5 m @ 1.54 gpt Au, 37 gpt Ag in rod cuts, and 9 m @ 0.92 gpt Au, 22 gpt Ag; 4.5 m @ 2.66 gpt Au, 30 gpt Ag; 13.5 m @ 1.42 gpt Au, 49 gpt Ag; 13.5 m @ 1.59 gpt Au, 28 gpt Ag; 7.5 m @ 1.84 gpt Au, 37 gpt Ag; 16.5 m @ 1.04 gpt Au, 23 gpt Ag; 15.0 m @ 5.58 gpt Au, 23 gpt Ag in trenches. The company is working with the database of 493 historic drill holes to establish a new 43-101 compliant resource (currently holding 380 K and 155 K Oz Au in the indicated and inferred categories respectively).

ON DEALS AND CORPORATE ISSUES

  • Tamino Minerals Inc. informed it has singed a letter of intent (LOI) on the Ofelia property in Sonora. The LOI terms state four years of staged payments totalling US$1 M plus a 2% NSR, and provides a 90-day term for due-diligence work.
  • Discovery Metals Corp. announced that with the conversion of 3.3 M subscription receipts to shares, Mr. Eric Sprott owns now approximately 21% interest in the company (Cordero, Chihuahua).
  • Newmont Goldcorp. announced that the Peñasquito mine and the nearby San Juan Cedros community (one of 25 neighbouring communities) in Zacatecas, agreed to an infrastructure solution for sustainable water availability for the community. The 30-year water agreement includes additional water wells to supplement the 600 K liters per-day reverse osmosis drinking water plant the company built in 2018.

ON SOCIAL RESPONSIBILITY

  • A Mining Gathering was held in Banamichi, Sonora, with more than 600 attendees, mostly students, with the purpose of letting them know the opportunities for internships and employment in mining units. Among the attendees were also governors of mining states, the ambassadors of mining countries, Congress representatives, Union leaders, 14 majors and representatives for mining companies, mining associations and mining communities.
  • The Asociación de Mineros de Sonora (Sonora’s Miners Association, or AMSAC) celebrated its 40th The celebration included a series of presentations and a formal dinner. Among the speakers were Francisco Quiroga (Mining Sub-secretary), Karen Flores (Camimex), Ernesto [Ríos (Americas Mining) and Lourdes McPherson (Argonaut Gold).
  • The first “Comité de Desarrollo Regional para las Zona Mineras (Mining Zones Development  Committee) was created in Hermosillo, Sonora. The finality of such committees is to assess and approve investment projects derived from the Mining Fund, incorporating all interest groups. The committee is integrated by:Comite Fondo Minero11The fist session is to be held in February 28, 2020, and the second on August 28, 2020.
  • Dr. Vagón is to be at La Junta, Chihuahua. From the 12 to the 16 of December, 2019. Among the services to be provided are: general consult, dermatology, pediatric care, geriatric care, odontology, chiropractic, physic rehabilitation, optometry, audiometry, mastography, colposcopy, family planning, lab test, diabetics clinic, psychology and nutrition. This itinerant train-mounted clinic has the capacity to Attend 550 persons daily.
  • The Safety, Environment and Social Responsibility Fair San Dimas 2019, was held on December 6 in Tayoltita, Durango. The different departments of the First Majestic mine displayed details on their work on the mining process, in a didactic and entertaining way, to workers, suppliers, municipality and State authorities, as well as their families and local inhabitants. Radio Plata (Silver Radio) was commissioned, the first radio station to be located in the vicinity, is part of the company’s Centro Cultural, where educative, social and cultural activities are to take place.
  • Minera Media Luna is showing a strong support for education in Guerrero. With support from local authorities in Cocula, the Instituto Tecnológico de Iguala, the Universidad Tecnológica Autónoma del Norte de Iguala, the State government, the Instituto Estatal para la Educación de Jóvenes y Adultos de Guerrero and the general population in Cocula, the company has: installed programs for diminishing the educative lag in primary and secondary education; taken 36 students in internships from local universities; supported 86 students through scholarships; invested $500 K pesos along with the Cocula municipality for the hiring of primary education personnel; participated in the Fourth Week of Mining on the Universidad Autónoma de Guerrero…. And several other programs in education not posted here for lack of space.
  • AMSAC, the Sonora Miners Association, signed an agreement with the Consejo Regulador del Bacanora (Regulatory Council for Bacanora, a spirits drink). Under this agreement , several mining companies are to grow the needed agave saplings for the production of Bacanora in their green houses, to be transplanted in the field by the agave growers.
  • Minera Peña Colorada presented the “Ilustred Guide to Wildlife in the Minatitlan Microbasin”, at the Feria Internacional del Libro 2019, in Guadalajara, Jalisco. This work was accomplished with the support of the Universidad Nacional Autónoma de México, and the Benemérita Universidad de Puebla.
  • The Mexican gray wolf has left the list of extinct species on the wild, moving to the category of species on extinction risk. This is the result of an international effort among the USA and Mexican governments, with the participation of Grupo Mexico. The declaration comes after 12 liberations and the documentation of 9 successful litters with some 30 puppies on the wild. Grupo Mexico, as well as other mining companies, has an UMA (Environmental Management Unit) that take care and reproduce threatened species.
  • Dr Vagón, Grupo Mexico’s health train, is to be on Ciudad Cuahutémoc, Chihuahua, from December 18 to December 22. The 17 train carriages itinerant clinic has the capacity to attend 600 persons per day, providing for a wide array of services, like diagnostics, ailment prevention, dermatology, odontology, physical rehabilitation, optometry, audiometry, psychology, nutrition, diabetes and chiropractic treatments.

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

On the image below: Sheeted quartz veinlets from an orogenic gold project in Oaxaca. Picture by Jorge Cirett

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The Mining and Exploration News in Mexico: Highlights on the Third Week of October, 2019

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By Jorge Cirett

During the 42nd week of the year (October 14th to October 20th, 2019), at least 29 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, The Congress dominated by Morena approved a bill dramatically changing the rules od operation of the Mining Fund for 2020 . ON EXPLORATION, in Sonora, Magna Gold released drilling results for its Mercedes project, and announced new exploration targets. In Sinaloa, Oroco Resource commenced work at the Santo Tomas project. In Durango, Gainey Capital commenced drilling at Las Margaritas. In Veracruz, Azucar Minerals discovered another mineralized center at El Cobre.  ON MINING, Sierra Metals, Fortuna Silver, Avino Silver, Gold Resource and McEwen Mining released third quarter 2019 production results. Argonaut Gold reported an accident that resulted in the death of two contractor’s employees at La Colorada, in Sonora. ON FINANCING, Kootenay Silver closed a $2 M private placement. Gainey Capital granted options to directors, officers, employees and consultants. Candelaria Mining discontinued a private placement due to unfavorable market conditions. ON RESOURCES AND DEVELOPMENT, SilverCrest Metals reported development mining sampling has returned less tonnage but more AgEq ounces at its Las Chispas property in Sonora. Azure minerals is planning a two-stage drill program at the Loma Bonita gold target of its Alacran property in Sonora. ON DEALS AND CORPORATE ISSUES, Tamino Minerals elaborated on the company’s history and incoming work at its El Volcan project in Sonora. Bacanora Lithium presented the current situation of Ganfeng’s investment on the company. Megastar Development entered into an option agreement regarding the Cerro Minas concession in Oaxaca. Riverside Resources released information on its BHP financing agreement for generative copper exploration in NW Sonora. Golden Minerals entered into an option agreement with Magellan Gold to sell its interest in the Santa Maria project in Chihuahua. ON SOCIAL RESPONSIBILITY. The Grupo Mexico Foundation donates 175 K trees in Queretaro. Ternium granted scholarships to 145 students. Esperanza Silver presented a sustainable project in Morelos.

ON MEXICO ISSUES

  • The Camara de Diputados (Deputies Chamber, or Congress) approved legal reforms concerning the use of the Mining Fund. The changes were approved only by the Morena party and allied members, taking away the planning and overseeing of funds (generated by a special tax on mining) from local mining municipalities, enforcing what is seen as federal discretional use.

ON EXPLORATION

  • Gainey Capital Corp. commenced a diamond drilling campaign at the Las Margaritas project in Durango. This initial phase comprises 1,080 m of drilling in 11 holes focused on the best mineralization exposed at the surface, where sampling has returned up to 73.7 gpt Au.
  • Azucar Minerals Ltd. Announced the discovery of another mineralized center at its El Cobre project in Veracruz. Two holes tested the El Primo target area, defined by a gold, copper and molybdenum soil anomaly. Relevant intervals comprise 5.25 m @ 0.60 gpt Au, 0.26% Cu and 8.45 m @ 0.20 gpt Au, 0.29% Cu in one hole and 200 m @ 0.40 gpt Au, 0.24% Cu in another hole, including 86.50 m @ 0.70 gpt Au, 0.42% Cu; which includes 55.60 m @ 0.94 gpt Au, 0.56% Cu; which includes 10 m @ 1.44 gpt Au, 0.85% Cu. This target is at least a kilometer away from other already identified mineralized centers within the property.
  • Oroco Resource Corp. commenced technical field work, initial environmental baseline studies and permitting at its Santo Tomas project in Sinaloa. This work is to be followed by a 3D induced polarization geophysical survey and the first phase of confirmation diamond drilling. The company holds an option to acquire a 56.7% interest in the 1,173 ha core concessions of the project, and might increase that interest up to an 81.0% interest with a project investment of up to CAD$30 M. Oroco also holds a 77.5% interest in 7,808 ha surrounding and adjacent to the core concessions.

ON MINING

  • Argonaut Gold Inc. informed on an accident involving a contractor that resulted in death by electrocution of two individuals while performing maintenance work on a haul truck at La Colorada mine in Sonora. Operations were suspended on October 11 and resumed on October 12, 2019.
  • Sierra Metals Inc. reported third quarter 2019 production, including figures from its Mexican operations. At Bolivar in Chihuahua, 331.8 K tonnes were processed at a 3,792 tonnes per day rate (tpd) @ 0.86% Cu, 20.5 gpt Ag, 0.31 gpt Au, recovering 81.3% Cu, 79.0% Ag, 62.3% Au to produce 5.115 M Lb Cu, 173 K Oz Ag, 2,173 Oz Au. At Cusi, also in Chihuahua, 70.4 K tonnes were processed at an 805 tpd rate @ 141.5 gpt Ag, 0.15 gpt Au, 0.14% Pb, recovering 84.6% Ag, 39.6% Au, 78.3% Pb to produce 271 K Oz Ag, 135 Oz Au, 168 K Lb Pb.
  • Fortuna Silver Mines Inc. disclosed production results for the third quarter 2019, including figures from its Mexico operations. At San Jose in Oaxaca, 268 K tonnes were milled @ 219 gpt Ag, 1.40 gpt Au, recovering 82.4% Ag, 90.6% Au, to produce 1.71 M Oz Ag, 10,942 Oz Au, at a cash cost per ton of US$70.80.
  • Avino Silver & Gold Mines Ltd. released third quarter 2019 production results from its Avino property in Durango. Consolidated figures comprise 202.7 K tonnes processed @ 44 gpt Ag, 0.33 gpt Au, 0.33% Cu, recovering 76% Ag, 67% Au, 68% Cu to produce 221.9 K Oz Ag, 1,448 Oz Au, 1.38 M Lb Cu. At the Avino mine 122.2 K tonnes were processed @ 41 gpt Ag, 0.31 gpt Au, 0.58% Cu to produce 139.4 K Oz Ag, 900 Oz Au, 1.3 M Lb Cu; 17.8 K tonnes were processed from the San Gonzalo mine stockpiles (the mine is now closed) @ 56 gpt Ag, 0.41 gpt Au to produce 29.6 K Oz Ag, 194 Oz Au; From historic above ground stockpiles 62.6 K tonnes were processed @ 47 gpt Ag, 0.33 gpt Au, 0.33% Cu to produce 232.1 K OZ Ag, 1,528 Oz Au, 311 K Lb Cu.
  • Gold Resource Corp. reported preliminary production for the third quarter 2019, including figures from its operations in Mexico. At the company’s Oaxaca Mining Unit, a total of 7,462 Oz Au, 473.8 K Oz Ag, 492 tonnes of copper, 2,459 tonnes of lead and 6,057 tonnes of zinc were produced.
  • McEwen Mining Inc. released production details for the third quarter 2019, including figures from its Mexican operations. At its El Gallo property in Sinaloa, 3,018 Oz Au were produced by residual leaching of the heap leach pad.

ON FINANCING

  • Kootenay Silver Inc. closed its non-brokered private placement of $2 M that was fully subscribed by Ninepoint Silver Equities Class with Sprott Asset Management LP acting as sub-advisor. (Columba, Chihuahua).
  • Candelaria Mining Corp. announced that a private placement previously announced has been discontinued due to unfavorable market conditions. The company intends to conduct an offering on a non-brokered private placement basis for aggregate gross proceeds of up to $700 K. Closing of the new private placement is expected to be on November 30, 2019 (Caballo Blanco, Veracruz).
  • Gainey Capital Corp. granted 1.5 M incentive stock options to its directors, officers employees and consultants (Las Margaritas, Durango).

ON RESOURCES AND DEVELOPMENT

  • SilverCrest Metals Inc. informed development work has intersected better grades than those in the resources estimate for the Babicanora vein at its Las Chispas property in Sonora. Underground mining along 180 m of the Babicanora vein (20% of the mineralized length on area 51) reported 33% less tonnes, but 65.7% more AgEq ounces for the interval. In total 4,170 tonnes were extracted @ 15.18 gpt Au and 1,071 gpt Ag (2,209 gpt AgEq), while the resource estimate in this zone graded 4.48 gpt Au and 556 gpt Ag (892 gpt AgEq). Underground sampling returned up to 2.8 m @ 94.52 gpt Au, 8,320 gpt Ag (15,409 gpt AgEq). SilverCrest plans to have a stockpile of 25-30 K tonnes of high-grade material containing 800 K to 1 M Oz AgEq, extracted by development work to the end of 2019.
  • Azure Minerals Ltd. is planning a two-stage drill program on resource expansion at Loma Bonita, within the Alacrán project in Sonora. High-grade intersections on the resource boundary, like 47 m @ 2.8 gpt Au, 33 gpt Ag and 67 m @ 1.6 gpt Au, 21 gpt Ag (both from surface) favor the continuity of the ore body. First pass sampling of historical workings south of Cerro Alacrán returned up to 3,675 gpt Ag, 21.1 gpt Au, 2.3% Cu, 33.5% Pb, 21.0% Zn. Applications for environmental approval have been submitted.

ON DEALS AND CORPORATE ISSUES

  • Tamino Minerals Inc. elaborated into the long and convolute company history and financing (El Volcan, Sonora).
  • Bacanora Lithium PLC. Announced the completion of the “Invested Agreement and Offtake Agreement” which together make the “Strategic Investment” of Ganfeng Lithium Co.. The relevant approvals have been completed and Bacanora has now received £21.96 M of funds from Ganfeng, for a 29.99% equity interest in Bacanora Lithium PLC and a 22.5% JV investment directly in the Sonora Lithium Project. The vice-president of Wangfeng was appointed a director of Bacanora. “The Bacanora project team in Mexico continues to progress the final design work for the mine, concentrator and kiln sections of the processing plant. The Ganfeng technical team has initiated work on the hydrometallurgical circuit…”
  • Tamino Minerals Inc. informed it is going to present a NI 43-101 report on its El Volcan property in Sonora once a registration statement is filed to the SEC and the company becomes fully reporting.
  • Megastar Development Corp. has entered into an option agreement with Gunpoint Exploration Ltd. to acquire 100% interest in the 899 ha Cerro Minas mining concession (title (234333) in Oaxaca. The agreement entails the payment of US$10 K and 100 K Megastar shares on the effective date, US$20 K and 150 K shares on the first anniversary, US$30 K and 250 shares on the second anniversary and US$40 K and 300 K shares on the third anniversary, with Gunpoint retaining a 1.5% NSR royalty, of which 0.5% can be bought by US$1.0 M.
  • Riverside Resources Inc. informed that the first two to three quarters of the exploration financing agreement with BHP for generative copper exploration in NW Sonora will be centered on regional prospect generation. The program envisages a minimum two-year US$2 M budget, and upon advancing projects to the operation phase (Phase II), BHP has the option to fund up to US$5 M for drilling and other exploration expenditures. Riverside is to receive US$200 K by project that makes it to the second phase.
  • Golden Minerals Co. entered into an option agreement with Magellan Gold Corp. to sell its rights to acquire a 100% interest in the Santa Maria project, in Chihuahua. Magellan has a 150 days due diligence period to decide whether to execute the option, on which it has to pay $1 M cash, with Golden Minerals retaining a 6.5% royalty until a total of $3 M has been paid as royalty, with Golden retaining a 3% NSR royalty for the life of the mine. If Magellan fails to get the mine to production within one year from closing the deal, Golden will get back the property.

ON SOCIAL RESPONSIBILITY

  • The Grupo Mexico Foundation donates 175 plants and trees in Queretaro. Grupo Mexico is aiding to reach the goal of planting 250 thousand trees in the Queretaro municipality. Grupo Mexico is the number one producer of tree saplings in the country.
  • Ternium delivers scholarships and supports education in a mining zone. The Roberto Rocca Education Program and the Universidad de Colima granted this year scholarships to 145 students from universities in Mexico City, Nuevo Leon, Coahuila, Veracruz, Puebla, Colima and Michoacan. Since its inception in 2006, the Roberto Rocca Education Program has granted 3,000 scholarships.
  • Esperanza Silver (Alamos Gold) presented a sustainable project for the Esperanza project in Morelos. The project involves the company’s involvement in the remediation of a nearby community landfill, and the collaborative support on the Lagunas de Zempoala, the national park Tepozteco, the biological corridor Ajusco-Chichinautzin as well as the state parks El Texcal, Sierra Montenegro and the biosphere reserve Sierra de Huautla.

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

On the image below:  Gneiss hosted quartz-feldspar veinlet from a project in Oaxaca. Picture by Jorge Cirett.

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The Mining and Exploration News in Mexico: Highlights on the First Week of October, 2019

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The Mining and Exploration News in Mexico: Highlights on the First Week of October, 2019

By Jorge Cirett

During the 40th week of the year (September 30th to October 6th, 2019), at least 20 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, Gold production declined 2.8% in 2018. On the illegal blockade at the Peñasquito mine in Zacatecas, the president of Mexico asked for both parties to solve their differences (not pronouncing himself on the illegality of the blockade). Frisco and Cemex suffered big losses at the Mexican stock exchange. ON EXPLORATION, in Sonora, Magna Gold signed a LOI on the San Judas project in Sonora; Colibri Resource is to complete mapping and sampling on its Evelyn project. In Sinaloa, Kootenay Silver signed a surface access agreement on the Copalito project. In Zacatecas, Alien Metals is eyeing a drill program on its San Celso project.  ON MINING, Alien Metals presented financial results for the first semester 2019. Torex Gold produced 138,100 Oz Au at El Limon-Guajes mine in Guerrero during the Q3 2019. ON FINANCING, Southern Silver, Millrock Resources and Alien Metals granted 3.25 M, 1.88 M and 7 M incentive options respectively to officers, directors, employees and consultants. Fortuna Silver closed a bought deal financing for US$40 M. Azure Minerals raised $4 M. ON RESOURCES AND DEVELOPMENT, GoGold resources released results for one more hole at its Los Ricos project in Jalisco. Premier Gold released results on drilling at the Lupita extension on its Mercedes mine in Sonora. Goldplay disclosed channel surface sample results at its San Marcial property in Sinaloa. Silver Bull provided results from eleven more drill holes at the Sierra Mojada project in Coahuila (halted by an illegal blockade). ON DEALS AND CORPORATE ISSUES, Magna Gold signed a LOI on the San Judas project in Sonora. Silver Bull halted exploration at its Sierra Mojada project in Coahuila, due to an illegal blockade by a mining cooperative demanding a royalty payment on a property that is not in production. Fortuna Silver terminated the option on Prospero Silver’s Pachuca SE project in Hidalgo. Millrock and Riverside entered into a definitive agreement on the La Union, Los Cuarentas, El Pima, El Valle, and Llano del Nogal projects in Sonora. Santacruz Silver approved the acquisition of the remaining 50% of PCG Mining S.A. de C.V., parent company of Carrizal Mining, S.A. de C.V.. ON SOCIAL RESPONSIBILITY. No relevant news.

ON MEXICO ISSUES

  • Gold production in Mexico declined by 2.8% in July 2019. This is the 28th consecutive month of production contractions, the longest since 1981, according to INEGI (Instituto Nacional de Estadística y Geografía). In 2016 the production declined by 5.2%, in 2017 another 13.6% and a further 9.7% in 2018. Mineral products with annual increments include zinc at 10.7%, iron pellets with 2.9%, lead with 2.5%, sulphur with 1.6% and coal with 0.8%.
  • On Peñasquito’s illegal blockade, Mexico’s president, Andres Manuel Lopez Obrador, asked both parties two solve their differences in the conflict that has now more than two weeks (he did not mention the blockade being illegal). Newmont Goldcorp has offered more than US$25 M in investments, amount that the blockaders reckon as lacking. The Peñasquito mine produced 272,000 Oz Au last year, and had re-started production in mid-June after a first illegal blockade by truckers wanting to get a contract and locals accusing the company of water availability issues.
  • To the 3rd of October Frisco and Cemex have suffered big losses in the Mexican stock exchange (S&P/BMV IPC), 13.76% and 6.24% respectively, under the current commercial instability between USA and the European Union. Frisco is one of the biggest mining companies in Mexico, with operations in Baja California, Sonora, Chihuahua, Zacatecas and Aguascalientes (although Frisco is also known for its scant releases on reserves and resources). Cemex is the biggest Mexican cement producer, with operations internationally.

ON EXPLORATION

  • Magna Gold Corp. signed a LOI to explore the San Judas project in Sonora. The two mineral concessions cover 2806 ha underlain by a Precambrian basement composed of granite, gneiss, pegmatites and schist. “The entire sequence is affected by multiple deformations and the emplacement of intrusions such as leucocratic granites and andesitic dikes”. Gold mineralization is associated with quartz-breccia veins, quartz veins and “quartz stockworks emplaced along a series of parallel, foliated, low-angle shear zones within the igneous-metamorphic sequence”. Assays in an historical rock chip sample database have values of up to 230 gpt gold.
  • Colibri Resource Corp. contracted Auro Metallum Geology Consulting Services of Hermosillo, in Sonora, to complete a geological mapping study of its 506 ha Evelyn Gold Project near Caborca in Sonora. Recent sampling has returned up to 4.8 gpt Au from abundant quartz in sub-crop in a new zone identified by soil sampling.
  • Alien Metals Ltd. updated on the exploration of its San Celso and Los Campos projects in Zacatecas. At San Celso a next step of work will examine a drill program funded by a third party to test the strike extension of the main veins, and the depth extension below the existing workings.
  • Kootenay Silver Inc. signed a surface access agreement with the local ejido at the Copalito project in Sinaloa. Said agreement allows the company to mapping, sampling, geophysics, trenching and drilling. The 3,700 ha project covers a low sulfidation epithermal system with numerous veins, traced over up to 2 km of length, and 0.5 to 15 meters in width. Sampling has returned assays of up to 8.2 gpt Au, 532 gpt Ag, 17.4% Zn, 9.9% Pb and 5.1% Cu.

ON MINING

  • Alien Metals Ltd. presented its financial results for the first semester of 2019. As of the end of the period the company had total assets of US$1.2 M, of which US$0.4 M was cash, and current total liabilities for US$0.1 M (Donovan 2, Zacatecas).
  • Torex Gold Resources Inc. announced gold production of 138,100 ounces of gold during Q3 2019, on track to meet it 2019 production guidance of 430,000 ounces. During the period plant throughput averaged 12,370 tonnes per day (tpd), underground mining 1,110 tpd, open pit mining 14,270 tpd (El Limon-Guajes, Guerrero).

ON FINANCING

  • Southern Silver Exploration Corp. granted 3.25 M incentive stock options to directors, officers and consultants, exercisable at $0.27 per common share for a period of five years. The rolling incentive stock option plan was also approved, pursuant to which a maximum of 10% of the issued shares will be reserved for issuance under the plan. (Cerro Las Minitas, Durango).
  • Millrock Resources Inc. approved a grant of stock options to employees, officers, directors and advisers to the company, granting a total of 1.88 M stock options exercisable at $0.09 for five years. The company is also to settle debt owed for deferred cash compensation to certain officers, directors and employees by issuing 819 K Millrock shares (Batamote, Sonora).
  • Alien Metals Ltd. granted 7 M options to its technical director, Brill Brodie. All shares are exercisable from 1 October 2019, of which 3 M can be exercised at 0.22 pence, 3 M at 0.30 pence and 4 M at 0.45 pence (San Celso, Zacatecas).
  • Fortuna Silver Mines Inc. closed the previously announced bought deal offering of senior subordinated unsecured convertible debentures for an aggregate principal amount of US$40 M. “The Debentures mature on October 31, 2024 and will bear interest at a rate of 4.65% per annum, payable semi-annually in arrears on the last business day of April and October in each year, commencing on April 30, 2020. The Debentures will be convertible at the holder’s option into common shares in the capital of the Company” at a conversion price of US$5.00 per share (San José, Oaxaca).
  • Azure Minerals Ltd. raised $4 M (before costs) through a placement to institutional and sophisticated investors “to relaunch an aggressive exploration push on the Alacrán silver and gold projects” in Sonora. Azure is to undertake drilling to increase mineral resources at the Loma Bonita Au-Ag deposit, today standing at 150 K Oz Au, 4.8 M Oz Ag in 5.4 M tonnes @ 0.9 gpt Au, 28 gpt Ag.

ON RESOURCES AND DEVELOPMENT

  • GoGold Resources Inc. released results from one more hole completed on the San Juan area of its Los Ricos project in Jalisco. The hole returned 21.0 m @ 1.38 gpt Au, 146 gpt Ag (3.33 gpt AuEq), including 5.0 m @ 4.36 gpt Au, 436 gpt Ag (10.2 gpt AuEq). The San Juan area is located 400 m NW from the Los Ricos Main area.
  • Premier Gold Mines Inc. released results from its drilling program focused on delineating new mineral resources in the Lupita Extension at its Mercedes mine in Sonora. Highlighted results comprise 3.6 m @ 7.18 gpt Au, 54 gpt Ag; 1.8 m @ 24.24 gpt Au, 179 gpt Ag; 3.4 m @ 8.86 gpt Au, 67 gpt Ag; 3.1 m @ 13.65 gpt Au, 80 gpt Ag. The Neo target is 400 m north of San Martin is a possible extension of the Diluvio system, with one of three drill holes returning 3.1 m @ 13.65 gpt Au, 80 gpt Ag.
  • Goldplay Exploration Ltd. disclosed results from channel sampling on the Faisanes target of the San Marcial project in Sinaloa. The samples were cut by saw along the access road walls and road surface, returning 10 m @ 98 gpt Ag, 0.06 gpt Au) 0.6 m @ 587 gpt Ag, nil Au; 1.0 m @ 214 gpt Ag, nil Au; 1.1 m @ 42 gpt Ag, nil Au; 1.0 m @ 41 gpt Ag, 0.26 gpt Au.
  • Silver Bull Resources Inc. provided results from eleven more drill holes from its Sierra Mojada project in Coahuila. Highlights from the holes comprise: 17.1 m of oxide mineralization @ 120 gpt Ag, 0.43% Cu (including 1.35 m @ 539 gpt Ag, 0.27% Cu and 2.25 m @ 198 gpt Ag, 1.66% Cu and 0.55 m @ 403 gpt Ag, 1.6% Cu); 5.2 m of sulfide mineralization @ 149 gpt Ag, 0.87% Cu, 4.67% Zn. Due to an illegal blockade by a cooperative of miners who hold a royalty on two claims, the drill program has been paused.

ON DEALS AND CORPORATE ISSUES

  • Magna Gold Corp. entered into a binding letter of intent (LOI) with the private owners of the two mining concessions forming the 2,806 ha San Judas project in Sonora. The deal involves payments of US$50 K on signature of the definitive agreement, US$50 K on the first year, US$100 K on the second year, US$150 K on the third year, US$300 K on the fourth year and US$1.,03 M on the fifth year, all figures plus VAT.
  • Silver Bull Resources Inc. halted all work on the Sierra Mojada project in Coahuila due to a blockade by a cooperative of local miners called Sociedad Cooperativa de Exploración Minera Mineros Norteños, S.C.L.. The company has an agreement with the said cooperative on two mineral concessions in the eastern part of the Sierra Mojada project, under which they have the right of a 2% production royalty. Since 2014 the cooperative filed a suit fighting for payment of the royalty, notwithstanding the lack of production from the property. The cooperative also demands payments of wages for individuals that have not worked for the company, neither received employment commitments from Silver Bull. The cooperative has now illegally blockaded access to the project in an attempt to force a settlement before the final ruling. “Silver Bull is working with authorities to resolve the situation in a safe, fair, and timely manner”.
  • Fortuna Silver Mines Inc. announced the termination of the Pachuca SE property option agreement signed previously with Prospero Silver Corp. (San José, Oaxaca).
  • Millrock Resources Inc. entered definitive agreements to sell the La Union, Los Cuarentas, El Pima, El Valle, and Llano del Nogal claim blocks to Riverside Resources Inc., as well a copy of its exploration database and exploration vehicles also to Riverside. Consideration paid to Millrock is $35 K cash and 150 K Riverside shares, and a 0.5% NSR on the El Pima, El Valle and Santa Rosalia (conditional on this one) claims. “Millrock has retained the El Batamote copper porphyry project and this will be the sole focus of Millrock’s exploration effort in Mexico going forward” (Batamote, Sonora).
  • Santacruz Silver Mining Ltd. shareholders approved in its last annual general meeting held in October 1, 2019, the re-election of directors, the auditor of the company and the approval of the existing 10% rolling stock option plan. Also approved was the acquisition of the remaining 50% of the outstanding shares of PCG Mining S.A. de C.V. from a non-arm’s length party in consideration for the issue of 30 M common shares of the company. Upon completion of the transaction the company will own 100% of PCG, which is the parent holding company of Carrizal Mining, S.A. de C.V..

ON SOCIAL RESPONSIBILITY

  • No Relevant News.

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

On the image below: Sheeted quartz veining in metamorphic rocks from an orogenic gold project in Oaxaca. Picture by Jorge Cirett.

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The Mining and Exploration News in Mexico: Highlights on the Second Week of August, 2019

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By Jorge Cirett

During the 32nd week of the year (August 5th to August 11th, 2019), at least 36 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, The president of Mexico announced in a political rally that no more mining concessions are to be granted during his term in office. ON EXPLORATION, In Chihuahua, Kootenay has mobilized a drill rig to its Columba property. In Coahuila, Discovery Metals released high-grade results from underground sampling at Minerva. In Zacatecas, Alien Metals carried out surface sampling at Los Campos, Donovan and San Celso projects; Advance Gold started an IP survey at Tabasqueña. ON MINING, Gold Resource, Premier Gold, Hecla Mining, Golden Minerals, First Majestic, Coeur Mining, Argonaut Gold, Pan American Silver, Avino Silver, Endeavour Silver, Alio Gold, Torex Gold, Fortuna Silver and GoGold reported second quarter production and/or financial results for the second quarter. Mexus Gold poured first gold at its Santa Elena mine in Sonora. ON FINANCING, Excellon Resources entered into an agreement with a sole bookrunner for gross proceeds of $10 M. Santacruz Silver granted options to its directors, officers, employees, consultants and advisors. Oroco closed a first tranche for $900 K. Impact Silver completed the first series of a round of financing for $2.4 M in gross proceeds.   ON RESOURCES AND DEVELOPMENT, US Antimony continues mining at Los Juarez, Queretaro. Hecla presented drill results from San Sebastian, Durango. Orla Mining filed the FS on Camino Rojo Oxide project. VVC Exploration approved the construction of a pilot plant on its Northern Mexico Copper project. Minera Alamos received the needed environmental approval for mine construction at Santana, Sonora. Goldplay Exploration compiled all the exploration information on a 6 km trend outside the known resource in San Marcial, Sinaloa ON DEALS AND CORPORATE ISSUES, Discovery Metals filed an early warning report in respect to its holdings in Levon Resources. Tamino Minerals is working to remove the stop sign to become current on the OTC. Minera Alamos reported the retirement from the Board of Directors of Mr. Chester Millar, (a long time player in the Mexican Mining scene). Mako Mining informed the near completion of production from La Trinidad mine in Sinaloa. Chesapeake Gold re-purchased a 1% NSR from Wheaton Precious Metals. ON SOCIAL RESPONSIBILITY. Argonaut Gold engaged in multiple community projects during the second quarter on its operations at San Agustin (Durango), El Castillo (Durango), La Colorada (Sonora) and La Paz (Baja California Sur).

ON MEXICO ISSUES

  • No more mining concessions in my term: AMLO. The president of Mexico, Andres Manuel Lopez Obrador, announced this Sunday (August 11th, 2019) in a political rally in Concepcion del Oro, Zacatecas, that under his term no more mining concessions are to be granted. “To give concessions of the mining regions to national and foreign companies was a policy forwarded since the time of (Carlos) Salinas de Gortari, and up to 80 million hectares were delivered for mining exploitation. To grasp it: let’s think in our territory. Mexico has 200 million hectares, and 80 million hectares, about 40 percent of the national territory. Never in History so much of our sovereign soil had been transferred”, he said. He also reiterated that current concessions are to continue, but no new ones are to be delivered. “We are not to cancel (the concessions), but we are not to continue delivering new concessions for mining exploitation. Because it was too much what was delivered. If we analyze it, we are going to conclude that it wasn’t delivered to produce, but to speculate financially ………. With what has been delivered they have to produce. That’s the main purpose and not speculation. What we ask the mining companies is, first, take care of the environment, that no territory is destroyed, not to act as it is done in other countries”. He asked for Mexican miners to be paid as in the United States, or Canada, and that the same environmental rules be applied, also making a call for the salaries of workers to be raised, with the same benefits. (Editor’s note.- All the president arguments can be easily refuted to show that granting mining concessions is, and has been, very helpful for the country and countless of Mexicans. But there is no valid argument to present to the president that on the one hand is calling for more investment, while in the other hand is closing the door to it.)

ON EXPLORATION

  • Kootenay Silver Inc. has mobilized a drill rig to commence a 3,000 m core drill program at its Columba project in Chihuahua. “The first 12 holes of the drill program will be designed to test the F vein where underground development work extended to 200 meter depth and the historic mining occurred”.
  • Alien Metals Ltd. carried out some surface rock sampling at its Donovan, Los Campos and San Celso projects in Zacatecas, results pending.
  • Advance Gold Corp. started a 800 x 500 m 3D induced polarization (IP) geophysical survey on its Tabaqueña project, Zacatecas. The goal of the survey is to assess the depth potential below the near surface mineralized zone that was encountered in the andesites, with the graphitic phyllites below still open at depth.
  • Discovery Metals Corp. released assay results for 112 underground samples from its drill permitted Minerva Ag-Zn-Pb project in Coahuila. Highlighted results from the Minerva mine include 0.4 m @ 8,880 gpt Ag, 8.7% Zn, 43.2% Zn, 2.30% Cu, 0.3 m @ 1,200 gpt Ag, 24.8% Zn, 18.2% Pb, 0.15% Cu; 0.2 m @ 1,340 gpt Ag, 20.8% Zn, 19.6% Pb, 0.11% Cu; 0.9 m @ 517 gpt Ag, 5.7% Zn, 3.3% Pb, 0.07% Cu in veins, 0.3 m @ 1,485 gpt Ag, 8.6% Zn, 32.1% Pb, 0.10% Cu; 0.3 m @ 1,145 gpt Ag, 10.8% Zn, 34.8% Pb, 0.10% Cu; 0.5 m @ 220 gpt Ag, 34.6% Zn, 13.2% Pb, 0.05% Cu; 0.4 m @ 1,050 gpt Ag, 5.8% Zn, 26.4% Pb; 1.4 m @ 131 gpt Ag, 22.2% Zn, 2.7% Pb, 0.04% Cu in mantos. Underground samples from the Concordia area returned 0.7 m @ 848 gpt Ag, 2.7% Zn, 12.5% Pb, 0.24% Cu; 0.8 m @ 320 gpt Ag, nil Zn, 13% Pb, 0.06% Cu; 1.1 m @ 267 gpt Ag, 0.4% Zn, 6.3% Pb, 0.06% Cu in vein and limestone. At Tercia area, samples from a small working in diorite returned 0.5 m @ 226 gpt Ag, 0.2% Zn, 15.5% Pb; 0.5 m @ 181 gpt Ag, 0.2% Zn, 10.0% Pb; 1.3 m @ 124 gpt Ag, 3.2% Zn, 6.1% Pb in breccias (fault zones?).

ON MINING

  • Mexus Gold US. has poured gold at its Santa Elena mine in Sonora (not to mistake for First Majestic’s Santa Elena mine, also in Sonora). The company recovered gold from its first heap leach pad using its Merrill Crowe gold recovery system. Mexus continues to mine and crush ore for the 2nd lift on heap leach pad #1.
  • Gold Resource Corp. presented production results for the second quarter 2019. At the Oaxaca’s Mining Unit 7,881 Oz Au, 466.5 K Oz Ag, 482 tonnes Cu, 2,304 tonnes Pb, 6,054 tonnes Zn were produced. At the Arista mine 115.8 K tonnes were milled @ 1.87 gpt Au, 92 gpt Ag, 0.40% Cu, 1.96% Pb, 4.77% Zn. At the Aguila open pit mine 8,872 tonnes were milled @ 1.39 gpt Au, 43 gpt Ag. At the Mirador mine 6,737 tonnes were milled @ 1.10 gpt Au, 201 gpt Ag. The company had $7.93 M of cash and cash equivalents by the end of the period.
  • Premier Gold Mines Ltd. reported operating results for the second quarter 2019, including figures from its Mexican operations. At Mercedes, in Sonora, 167.6 K tonnes were milled @ 3.0 gpt Au, 27.2 gpt Ag, recovering 95.9% Au, 35.0% Ag to produce 15,532 Oz Au, 51,354 Oz Ag. Co-product cash cost was $1,053 per Oz Au, and the co-product all-in-sustaining cost was $1,254 per Oz Au. On by-product basis, cash cost was 1,044 per Oz Au and AISC $1,252 per OZ Au. A total of 11,281 m of drilling targeted the Diluvio, Marianas and Barrancas veins “to replace reserves support mine production, test extensions of the main mine trends and to test new geological targets.”
  • Hecla Mining Co. presented second quarter 2019 results, including figure from its operations in Mexico. At San Sebastian, Durango, 463.7 K Oz Ag, 3,547 Oz Au were produced at by-product cash cost $9.22 per Oz Ag and by-product AISC$15.50.
  • Golden Minerals Co. released financial results for the second quarter 2019. An important point on the report is the still to be completed $22 M sale of the Velardeña, Santa Maria and Rodeo properties, as well as the Velardeña mill, to Grupo Autlan. Golden had a net loss of $2.5 M , ending the period with $1.8 M in cash and cash equivalents.
  • First Majestic Silver Corp. announced financial results for the second quarter 2019. During the period 3.2 M Oz Ag, 6.4 M OZ AgEq were produced at cash cost $6.84 per Oz Ag, and AISC $ 14.76 per Oz Ag on a consolidated basis from its San Dimas (Durango), Santa Elena (Sonora), La Encantada (Coahuila), San Martin (Jalisco), La Parrilla (Durango), Del Toro (Zacatecas). At the end of the period the company had $94.5 M in cash and cash equivalents.First Majestic production table1
  • Coeur Mining Inc. reported second quarter 2019 financial results, including figures from its Mexican operations. At Palmarejo, in Chihuahua, 447.7 K tonnes were milled @ 2.18 gpt Au, 147 gpt Ag, recovering 87.7% Au, 81.8% Ag, to produce 28,246 Oz Au, 1.73 M Oz Ag at adjusted CAS $741 per Oz Au and adjusted CAS $9.17 per Oz Ag. Production started and is to be ramped up 400 tonnes per day (tpd) at La Nacion deposit.
  • Argonaut Gold Inc. announced its operating and financial results for the second qurter of 2019. At Cerro del Gallo in Guanajuato, Argonaut is advancing on the pre-feasibility study, whereas at San Antonio in Baja California participated in a public information meeting regarding the environmental impact assessment process, while advancing in environmental permitting. At El Castillo, Durango, 2.3 M tonnes of ore @ 0.39 gpt Au, 3.49 M tonnes of waste were moved at a rate of 64 K tonnes per day (tpd) to produce 14,361 Oz Au, 29,791 Oz Ag at cash cost $976 per gold equivalent ounce. At San Agustin (Durango), 1.96 M tonnes of ore @ 0.39 gpt Au, 1.41 M tonnes waste were moved at 37 K tpd to produce 12,684 Oz Au, 43,097 Oz Ag at cash cost $910 per gold equivalent ounce. At La Colorada (Sonora) 1.19 M tonnes of ore @ 0.46 gpt Au, 5.9 M tonnes of waste were moved at 78 K tpd to produce 11,723 Oz Au, 35,485 Oz Ag at cash cost $894 per gold equivalent ounce.
  • Pan American Silver Corp. reported unaudited results for the second quarter 2019, including figures from its Mexican operations. At La Colorada, in Zacatecas, 2.04 M Oz Ag, 1.1 K Oz Au were produced at cash cost $2.82 per Oz Ag and AISC $5.07 per Oz Ag. At Dolores, in Chihuahua, 1.23 M Oz Ag, 28.5 K Oz Au were produced at cash cost $6.87 per Oz Ag and AISC $22.30 per Oz Ag. “Drilling at the La Colorada mine has further defined the skarn mineralization, indicating a high concentration of base metal and silver mineralization over large widths”. By the end of the period the company had cash and shorth-term investments for $138.8 M, and working capital of $793.1 M.
  • Avino Silver & Gold Mines Ltd. released consolidated financial results for the second quarter 2019. During the period 200.9 K tonnes were milled to produce 426.1 K Oz Ag, 1,609 Oz Au, 1.14 M Lb Cu, or 599.5 K Oz AgEq, with consolidated cash cost per AgEq ounce of $10.89, and AISC $13.10 per AgEq ounce. At the end of the quarter Avino held $3.4 M of cash, and a working capital of $8.7 M.
  • Endeavour Silver Corp. released its financial results for the second quarter 2019. Consolidated production from its Guanacevi (Durango), Bolañitos (Guanajuato), El Cubo (Guanajuato) and El Compas (Zacatecas) mines was 1.06 M Oz Ag, 9,558 Oz Au, or 1.8 M Oz AgEq at an all-in-sustaining cost of $20.90 per Oz Ag net of gold credits. During the period received the final tailings permit for its Terronera project in Jalisco, and reported positive drill results from Bolañitos and Guanacevi.
  • Alio Gold Inc. reported second quarter 2019 results, including figures from its operations in Mexico. At San Francisco, in Sonora, produced 10,230 Oz Au, 5,112 Oz Ag, with a by-product cost of $1,077 per Oz Au and an AISC of $1,079 per Oz Au. In January 2019 Alio stopped active mining in the San Francisco pit and focused on processing the low grade stockpile, which is to continue until the end of the year, after which only residual leaching is to go on.
  • Torex Gold Resources Inc. announced financial and operating results for the second quarter 2019. At El Limon-Guajes in Guerrero, 145.7 K tonnes per day (tpd) were moved, including 19,890 tpd of ore @ 2.91 gpt Au, with a recovery of 88% Au to produce 113,645 Oz Au at cash cost $605 and AISC $760. The Muckahi mining system is said to be on the way to demonstrate its efficacy by year end. Torex released a maiden underground mineral resource estimate for El Limon Deep of 797 K tonnes @ 5.52 gpt Au, containing 171 K Oz Au as an indicated mineral resource. The company had a cash balance of $131 M by the end of June.
  • Fortuna Silver Mines Inc. presented consolidated financial results for the second quarter 2019, including figures from its Mexican operations. At San Jose, Oaxaca, 271 K tonnes were milled at a rate of 3,045 tpd, grading 273 gpt Ag, 1.78 gpt Au, with a recovery of 91% Ag, 90% Au to produce 2.16 M Oz Ag, 13,204 Oz Au at cash cost $6.20 per Oz Ag and an AISC of $9.3 per Ag Oz. By the end of the period Fortuna held $77.2 M in cash and cash equivalents.
  • GoGold Resources Inc. reported second quarter results 2019. During the period GoGold produced 451 K Oz Ag from the Parral tailings. By the end of June the company had $9.0 M in cash and marketable securities and no debt.

ON FINANCING

  • Excellon Resources Inc. entered into an agreement with Cormark Securities Inc. as sole bookrunner and lead underwriter to buy units of the company for gross proceeds of approximately $10 M (Platosa, Durango).
  • Santacruz Silver Mining Ltd. granted 8.5 M stock options options to its directors, officers, employees, consultants and advisors (Veta Grande, Zacatecas; Rosario, San Luis Potosi).
  • Oroco Resource Corp. closed the first tranche of the previously announced non-brokered private placement for gross proceeds of $900 K (Santo Tomas, Sinaloa).
  • Impact Silver Corp. completed the first series of the third tranche of the non-brokered private placement previously announced and updated, receiving aggregate gross proceeds of $2.44 M. The company intends to complete a second series of the third tranche for gross proceeds of $554.2 K. Impact has paid $56 K to Infor Financial Inc. and $50 K to Canaccord Genuity Corp. as finders fee (Zacualpan, Estado de Mexico).

ON RESOURCES AND DEVELOPMENT

  • United States Antimony Corp. continues mining in two open pits at Los Juarez mine in Queretaro. At the Puerto Blanco mill in Guanajuato maintenance and improvements are being made to support increased production. At the Puerto Blanco leach circuit the plastic liner and fire assay equipment have been purchased. At the Madero smelter in Coahuila, The caustic leach plant has been tested and is operational to produce gold, silver, and antimony.
  • Hecla Mining Co. added new mineralization by drilling on the Middle and El Toro veins, potentially adding oxide mine life to San Sebastian, in Durango. Near-surface mineralisation has been defined by drilling for over 1,200 m along strike and 160 m of depth. Recent intercepts include 2.40 m @ 874 gpt Ag, 11.5 gpt Au; 1.50 m @ 398 gpt Ag, 1.86 gpt Au; 3.41 m @ 236 gpt Ag, 3.42 gpt Au. “Preliminary engineering studies have begun to evaluate the potential of both open pit and underground mining options at El Toro and drilling in this area is planned to continue through the third quarter.”
  • Orla Mining Ltd. filed a technical report on its Camino Rojo project, Zacatecas. The company previously released the results of the feasibility study (FS) for the oxide part of the mineralized body, which envisages the movement of 44 M tonnes @ 0.73 gpt Au, 14.2 gpt Ag to leach pads, and a recovery of 64% Au, 17% Ag.
  • VVC Exploration Corp. board of directors approved the start of a pilot mine on the Gloria Zones of its Northern Mexico Copper Project (Samalayuca) in Chihuahua. The plan envisions open pit mining and heap leach extraction by electrowinning (SX-EW) starting at 2 K tonnes per day (tpd) of mineralized material, scalable to 4 K tpd.
  • Minera Alamos Inc. received the approval of the environmental impact statement (Manifestación de Impacto Ambiental, or MIA) by SEMARNAT, the regulatory federal environmental agency, rendering the company with the key approvals for the construction of  commercial scale mining facilities at its Santana project in Sonora.
  • Goldplay Exploration Ltd. compiled all the exploration information supporting that its San Marcial project in Sinaloa has a strong precious metal potential, beyond the already defined resource. Five known areas over a 6 km trend include: Nava, with trench sampling of up to 24 m @ 2.1 gpt Au; Chachalaca Micuines, where several rock chip samples returned 1m @ 1.0 – 5.0 gpt Au, and up to 0.9 m @ 13.3 gpt Au; Guacamayo, with a trench interval returning 24 m @ 219 gpt Ag, 0.25 gpt Au; Resource area, on which recent assays of drill holes identified new gold mineralisation outside the resource, with true width intervals (tw) of 1.0 m @ 2.5 gpt Au, 8.4 m @ 0.7 gpt Au, 12 m @ 0.2 gpt Au; Faisanes, where recently a drill hole interval of tw 0.9 m @ 204.6 gpt Au.

ON DEALS AND CORPORATE ISSUES

  • Discovery Metals Corp. filed an early warning report in respect of its holdings in Levon Resources Ltd., now beneficially owns or controls 117.1 M Levon Shares, representing all of the issued and outstanding Levon Shares. Discovery did not own or control, directly or indirectly, any shares in Levon prior to the Arrangement. (Puerto Rico, Coahuila; Cordero, Chihuahua).
  • Tamino Minerals Inc. informed that “The company is not planning to complete a REVERSE SPLIT at this moment and is not in the company’s plans to do this.” Furthermore stating that “no dilution is guaranted” as its latest DTCC Share Position Report shows that the company has 149.8 M common shares in the float. The company is also working on preparing financial statements in order to remove the stop sign to become current on the OTC Markets (El Volcan, Sonora).
  • Minera Alamos Inc. reported the retirement from the Board of Directors of Mr. Chester Millar. Mr Millar (born 1927) was involved in multiple heap leach mining projects in Mexico for several decades, and is included in the Canadian Mining Hall of Fame since 2008 (Note by editor.- our sincere thanks and respect to Chester Millar for his contributions to the mining industry in Mexico).
  • Mako Mining Corp. informed gold production from the Trinidad mine in Sinaloa is nearing completion. Mining operations ceased at the end of March, and most of the crushing plant has been moved to another project in Nicaragua. The company has been unsuccessful in receiving any proceeds from the claim due to the damages sustained at La Trinidad from Hurricane Willa in October 2018, and legal actions have commenced against the insurer provider and their reinsurers. “Discussions are underway with the mining contractor for La Trinidad and the Mexican government regarding significant payables still outstanding at our Mexican subsidiary that holds La Trinidad”. Mako believes that the company has properly structured its Mexican subsidiary in a way that these liabilities do not extend outside of Mexico, whereby any proceeds from the sale of the equipment, or success in the insurance litigation, will be for the benefit of Mako. Discussions are proceeding with the mining contractor with the goal of reaching a mutually acceptable settlement. Finally, all other assets held in Mexico are to be sold or liquidated on due course (Note of editor.- From the outside, and with no further information other than what’s on the press release, the remarks on the isolation of the parent company from any litigation while leaving the country with debts outstanding are the kind of practices that make foreign companies easy targets for interest groups on any country. In short, please do not do that).
  • Chesapeake Gold Corp. has exercised an option to re-purchase a one percent (1.0%) net smelter returns royalty (NSR) on its Metates Au-Ag-Zn project, Durango. The NSR was purchased from Wheaton Precious Metals Co., a subsidiary of Wheaton Precious Metals Corp. for US$9.0 M.

ON SOCIAL RESPONSIBILITY

  • Argonaut Gold Inc. engaged in multiple community projects during the second quarter of 2019. Received the nationally awarded Environmental Socially Responsible Company recognition at the El Castillo Complex for the seventh consecutive year, and held an opening ceremony of a new plant nursery at San Agustin (also in Durango). At La Colorada (Sonora), San Juan del Rio (Durango) and San Antonio (Baja California Sur) hosted a Children’s Day celebration. At La Colorada (Sonora) assisted, in collaboration with the State of Sonora Secretariat of Education and Culture, with the rehabilitation of educational facilities and donated computers, as well as hosted a women’s community workshop in La Colorada. Finally, hosted a health and wellness community workshop in La Paz, Baja California Sur.

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

On the image below: quartz veinlets and quartz filed breccia in metamorphic rocks of a project in Oaxaca. Picture by Jorge Cirett

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