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 Fourth Week of June, 2020

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By Jorge Cirett

During the 26th week of the year (June 22nd to June 28th, 2020), at least 30 press releases were announced by companies working in Mexico. Notably, 6 of those were exploration updates and 6 more related to financing. ON MEXICO ISSUES, Mining and  Automotive industries are to operate even if there is a resurgence of Coronavirus cases. The Mining Fund Technical Committee approved US$11.6 M for 98 projects in 11 States. Canadian Mining companies are under pressure to pay disputed taxes. AMLO rejected the idea of nationalizing the lithium industry…. but declares the conditions on which those conditions are granted have to be reviewed (Keep in mind what’s been happening in the electricity industry).  ON EXPLORATION, in Sonora, Ridgestone completed a maiden drill program on its Rebeico project; Tarachi Gold acquired the Tarachi property in Sonora; Aztec Minerals identified multiple chargeability anomalies at its Cervantes project; Tocvan Ventures released strong results of its soil program on the Pilar project. Vizsla Resources released high grade drilling results from its Panuco project. GoGold Resources released results from three more drill holes at its Los Ricos South project.  ON MINING, VanGold Mining plans to clearing the shaft at the Pinguico property to provide access for sampling and eventually infill extraction. ON FINANCING, Southern Silver is eyeing a private placement to raise up to C$7 M. Aura Minerals authorized a dividend’s policy. First Mexican Gold granted 2.5 M options to directors, officers and consultants. Orex Minerals raised $989 K on the closing of the first tranche of its non-brokered private placement. Apollo Gold aims to raise up to $5 M. McEwen Mining refinanced its $50 M senior secured term loan facility.   ON RESOURCES AND DEVELOPMENT, GR Silver Mining released drill results from historic holes at its Plomosas project in Sinaloa. Magna Gold filed a technical report on its San Francisco mine, in Sonora. SilverCrest Metals updated on the development of the Las Chispas project under the Coronavirus emergency. ON DEALS AND CORPORATE ISSUES, Argonaut Gold and Alio Gold announced that COFECE, the last bureaucratic hurdle, has cleared the transaction on its merger. Riverside Resources disclosed additional funding from BHP on its generative copper exploration program in Sonora. Southern Silver Exploration signed an agreement to acquire Electrum Global Holdings’s 60% share on the Cerro Las Minitas project in Durango. Candente Gold mobilized a team for the due diligence on the El Dorado project and the SDA mill in Nayarit. Hochschild optioned the Los Cuarenta property in Sonora from Riverside Resources. Apollo Gold Corp. entered into a LOI to option the “Jalisco Group of properties” from First Majestic. ON SOCIAL RESPONSIBILITY. Peñasquito donated medical supplies to the IMSS Hospital Número 12 in Concepción del Oro, Zacatecas. Esperanza Silver repaired the water supply system in San Agustín Tetlama, Morelos.

ON MEXICO ISSUES

  • Mining and the Automotive industries to operate, even if there is a resurgence (hypothetical) of Coronavirus cases. Graciela Márquez, Economy Secretary, explained these industries are essential, and are to continue activities under any color of the health lights system.
  • The Mining Fund Technical Committee approved the funding of 98 projects for US$11.6 M ($260.9 M pesos) for pavement laying, sidewalk construction and water supply nets. The funds are to be distributed as follows: Sonora US$6.12 M, Zacatecas US$2.47 M, Durango US$1.08 M, Coahuila US$0.93 M, Chihuahua US$0.71 M, San Luis Potosí US$0.21 M, Aguascalientes US$90 K, Jalisco US$54 K, Michoacán US$45 K, Oaxaca US$32 K and Hidalgo US$14 K.
  • Canadian Mining companies are under pressure to pay disputed taxes to the Mexican government, according to University academics on the matter.
  • The president of Mexico, Andres Manuel Lopez Obrador, rejected the idea of nationalizing the lithium exploitation in the country. His comment comes regarding the ideas expressed by Victor Manuel Toledo, Environment Secretary and staunch opponent of mining. According to the president, there is already a legal framework for contracts and concessions by the government for the exploitation of mineral resources. However, he also stressed that the conditions on which those concessions are granted have to be reviewed.

ON EXPLORATION

  • Ridgestone Mining Inc. completed the maiden drill program at its Rebeico project in Sonora. Under the program 1,674 m were drilled in ten holes. Most of the holes tested the geometry of gold-copper mineralization on the New Year Zone. Core samples are being submitted to the lab.
  • Vizsla Resources Corp. released drilling results from two holes on the Napoleon vein corridor at the Panuco project in Sinaloa. Highlighted core-length intercepts comprise: 8.2 m @ 739 gpt Ag, 11.06 gpt Au; 2.0 m @ 1,527 gpt Ag, 24.9 gpt Au on one hole; 2.5 m @ 454 gpt Ag, 9.20 gpt Au; 5.1 m @ 309 gpt Ag, 8.00 gpt Au, 2.22% Pb, 4.75 % Zn; 1.8 m @ 186 gpt Ag, 15.63 gpt Au, 1.12% Pb, 7.73% Zn in the second hole. True widths are estimated at between 46-66% of down hole lengths.
  • GoGold Resources Inc. informed on the results from three diamond drill holes at the Los Ricos South project. The holes drilled at the San Juan, Rascadero and East veins returned core length intervals of 27 m @ 0.09 gpt Au, 28 gpt Ag (including 4.0 m @ 0.45 gpt Au, 89 gpt Ag); 39.0 m @ 0.45 gpt Au, 117 gpt Ag (including 11.0 m @ 1.40 gpt Au, 319 gpt Ag); 3.2 m @ 0.15 gpt Au, 25 gpt Ag.
  • Tarachi Gold Corp. commenced fieldwork at its Tarachi project in Sonora. Tarachi’s geological crews have begun a two-week field program of geological mapping and rock sampling of known mineral occurrences to verify historical work programs. Historical work includes drill intercepts of 5.0 m @ 34.5 gtp Au, 3.0 m @ 24.3 gpt Au; 1.32 m @ 110 gpt Au. The 2,560 ha project includes the San Javier, Pretoria, Chivitas, Jabali, Juliana, Texana and Tarachi concessions.
  • Aztec Minerals Corp. identified multiple chargeability anomalies on a 3-dimensional IP-Resisitivity survey completed last year at its Cervantes property in Sonora. Each of the 6 porphyry prospects along the corridor exhibit strong porphyry alteration and Au (Cu) mineralization, while none of the Jacobo, Purisima West, Purisima East and Estrella targets have ever been drill-tested .
  • Tocvan Ventures Corp. released results from the soil sampling survey undertaken at its Pilar property in Sonora. The results include values of up to 8 gpt Au and 317 gpt Ag, and collectively have highlighted the East Zone as a new focus area..

ON MINING

  • VanGold Mining Corp. plans to begin clearing the El Pinguico shaft at its El Pinguico project in Guanajuato. The mucking of the shaft will allow the company to sample the lower part of the old workings infill, which on surface averaged 1.75 gpt Au, 183 gpt Ag. It will also allow the inspection of underground drifts for extracting the mineralized material, and check on past producing high-grade stopes.

ON FINANCING

  • Southern Silver Exploration Corp. plans a fully marketed private placement aiming to gross proceeds for a minimum of C$7 M. The company entered into a definitive agreement with Electrum Global Holdings L.P. to acquire Electrum’s 60% ownership interest in Southern Silver Holdings Ltd. for current and future cash and share payments totaling US$15.0 M (Cerro Las Minitas, Durango).
  • Aura Minerals Inc. announced its board of directors approved a dividend policy (Aranzazu, Zacatecas).
  • First Mexican Gold Corp. granted 2.5 M options to directors, officers and consultants (Hilda, Sonora).
  • Orex Minerals Inc. closed the first tranche of its non-brokered private placement, for gross proceeds of $989 K (Sandra-previously Sandra Escobar-, Durango).
  • Apollo Gold Corp. is conducting a non-brokered placement aiming to raise up to $5 M in gross proceeds (Eztzatlan, Jalisco).
  • Mc Ewen Mining Inc. announced the refinancing of its $50 M senior secured term loan facility. “As part of the refinancing, Sprott Private Resource Lending II (Collector), LP has replaced Royal Capital Management Corp. as a lender and the administrative agent for the Term Loan; and Evanachan Limited, a corporation wholly-owned by Rob McEwen, remains a lender….. the maturity date of the Term Loan has been extended by two years to August 31, 2023” (El Gallo, Sinaloa).

ON RESOURCES AND DEVELOPMENT

  • GR Silver Mining Ltd. Released drill results from historic holes at its Plomosas project in Sinaloa. These high-grade silver intercepts are outside the previously mined Pb-Zn-Ag-Au ore of the Plomosas mine area. Some of the highlighted true width (tw) intercepts comprise: 14.6 m @ 46 gpt Ag, 1.0 gpt Au, 1.7% Pb, 2.2% Zn; 5.4 m @ 326 gpt Ag, 1.9 gpt Au, 0.7% Pb, 1.2% Zn (including 1.9 m @ 900 gpt Ag, 1.9 gpt Au, 1.9% Pb, 3.2% Zn); 2.1 m @ 349 gpt Ag, 0.4 gpt Au, 2.3% Pb, 1.3% Zn); 2.7 m @ 1,469 gpt Ag, 0.5 gpt Au, 2.2% Pb, 3.2% Zn; 17.4 m @ 4 gpt Ag, 3.6 gpt Au; 2.2 m @ 398 gpt Ag, 0.3% Pb, 0.7% Zn; 32.8 m @ 32 gpt Ag, 0.9 gpt Au; 9.8 m @ 28 gpt Ag, 0.7 gpt Au, 4.2% Pb, 0.9% Zn; 13 m @ 13 gpt Ag, 2.8 gpt Au, 0.5% Pb, 1.4% Zn; 11.7 m @ 8 gpt Ag, 1.7 gpt Au, 0.4% Pb, 0.7% Zn.
  • Magna Gold Corp. filed an independent technical report for the San Francisco Gold project in Sonora.
  • SilverCrest Metals Inc. continues activities at its Las Chispas project in Sonora. A fully confined camp for 160 persons has been built at the site. All personnel is tested for COVID-19, and transported to the project once the negative results are received. Currently eight rigs are operating on the H2 program focusing on the high-grade resource expansion at the veins Babicanora (SE, NE, deep), Babi Sur (SE to depth), Babi Vista (all directions), Babicanora Norte (SE, NW, deep), Las Chispas (SE to depth), Giovanni (SE to depth), William Tell (all directions), and Varela (all directions). “Underground development has resumed, with a target of 500 metres per month by Q3, 2020, under confined camp conditions. The first ventilation raise in the Babicanora area has been completed. “. The feasibility study is progressing.

 

ON DEALS AND CORPORATE ISSUES

  • Argonaut Gold Inc. and Alio Gold Inc. announced the receipt of the clearance decision from the Comisión Federal de Competencia Económica (COFECE) with respect to the pending merger between Argonaut Gold and Alio Gold. This approval “was the final government agency approval required before completing the merger, which is anticipated to occur between June 29, 2020 and July 3, 2020” (El Castillo, Durango; Ana Paula, Guerrero).
  • Riverside Resources Inc. announced the continuation of the exploration agreement with BHP Exploration Chile SpA for the funding of generative copper exploration in the copper producing belt of Sonora. “BHP will be providing Riverside with US$720,000 to commence the first half of the second year of the Program to continue to grow the portfolio of copper projects which is an increase of US$220,000 from the initial plan ”.
  • Southern Silver Exploration Corp. entered into a definitive agreement with Electrum Global Holdings L.P. to acquire Electrum’s 60% ownership interest in Southern Silver Holdings Ltd. for current and future cash and share payments totaling US$15.0 M to gain 100% interest in the Cerro Las Minitas project, in Durango. Payments include US$5M in cash and US$2 M in shares by September 2020 (less credit for deposit of C$1.35 M paid in June 2020), US$2 M in cash and US$2 M in shares six months from closing and US$2 M in cash and US$2 M in shares one year from closing Cerro Las Minitas, Durango).
  • Candente Gold Corp. mobilized a team for the due diligence process on its acquisition process from Magellan Acquisition Corp. of the San Dieguito de Arriba processing plant and the El Dorado project in Nayarit. The Eldorado epithermal vein trend has been traced for 3.5 km along strike, hosting multiple mineralized zones, including distinct high-grade veins and lower grade bulk tonnage stockwork zones extending over tens of meters in width in both the hanging wall and footwall of the vein system.
  • Riverside Resources Inc. entered into a definitive option agreement with Minera Hochschild de Mexico S.A. de C.V. for Riverside’s Los Cuarentas project in Sonora. Hochschild is to pay Riverside US$90 K on the signing of the agreement and invest US$8 M over four years in the property to earn 51%, upon which it can elect to earn an additional 24% by spending a further $3 M and producing a feasibility study. Upon completing the second phase earn-in, Riverside will have the option to sell its interest for US$20 M, while retaining a 1% NSR.
  • Apollo Gold Corp. entered into a non-binding letter of intent (LOI) with First Majestic Silver Corp. for a three-year earn-in option to acquire First Majestic’s “Jalisco Group of Properties”. Under the terms of the agreement Apollo will pay $250 K and issue 4.29 M shares and 1.5 M warrants on closing of the definitive agreement. A further $200 K and 1 M shares a year from closing and $300 K and 1 M shares two years from the closing date. Apollo commits to spend at least $1.25 M on the properties within 36 months of closing. The properties comprise 5,240 ha of mining concessions which include the Etzatlan, Ampora, La Calabaza, Piedra and Bola mines.

ON SOCIAL RESPONSIBILITY

  • Peñasquito donated medical supplies in the fight against Coronavirus to the IMSS Rural Hospital number 12 in Concepción del Oro, Zacatecas.
  • Esperanza Silver de Mexico repaired the water supply equipment supplying the 2,500 inhabitants of San Agustín de Tetlama community in Morelos.

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: Epithermal quartz-graphite vein, Hermosillo District, Sonora, Sonora. Picture by Jorge Cirett.

186

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 Fourth Week of January, 2020

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By Jorge Cirett

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

ON MEXICO ISSUES

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

ON EXPLORATION

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

ON MINING

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

ON FINANCING

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

ON RESOURCES AND DEVELOPMENT

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

ON DEALS AND CORPORATE ISSUES

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

ON SOCIAL RESPONSIBILITY

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

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

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

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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 Second Week of November, 2019

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By Jorge Cirett

During the 46th week of the year (November 11th to November 17th, 2019), at least 23 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, mining investments in Mexico decreased from 8 billion dollars in 2018 to 5 billion dollars in 2019. Camimex held a fiscal seminar in Queretaro. Almaden Minerals published a letter on indigenous population around the Ixtaca project in Puebla. Promperú organized in Hermosillo, Sonora, a Commercial Mission of suppliers to mining in Peru. The top ten silver miners in Mexico produced 39.8 M Oz in the third quarter 2019. The mining industry in Mexico has been subject in the past few years of regulatory hurdles that are having a negative effect in investment in the sector, the last one being the decision by SEMARNAT not to authorize the MIA on the Ixtaca project in Puebla until there is a resolution on a legal suit on a piece of land no longer held by the company running the project.  ON EXPLORATION, in Sonora, Evrim updated on exploration of the El Llanito del Nogal property; Magna Gold reported assay results from four more holes at Mercedes. In Sinaloa, Vizsla Resources released high-grade results from rock channel sampling at Panuco.  ON MINING, Premier Gold, Golden Minerals, Starcore International, Americas Gold and Silver, Sierra Metals, Odyssey Marine Exploration and Fortuna Silver presented third quarter 2019 results. Consolidated Zinc and Industrias Peñoles signed an offtake agreement on zinc concentrate. ON FINANCING, Tamino Minerals informed on trading volumes. Mexican Gold received TSX approval for the listing of 50 M warrants from a previous financing. Colibri Resources entered into a loan agreement with Agnico Eagle for $300 K.  ON RESOURCES AND DEVELOPMENT, Defiance Silver is to start a two-phase technical program at San Acacio, Zacatecas. Endeavour Silver reported positive drill results on recently acquired El Curso concession within its Guanaceví property. Peñoles is to invest $70 M at its processing facilities in Torreon. SilverCrest released high-grade results from drilling at the Babi Vista vein at Las Chispas, in Sonora. Bacanora Lithium updated on project development on its Sonora project. ON DEALS AND CORPORATE ISSUES, Evrim signed an agreement with San Marco Resources to acquire the Suanse property in Sonora. Colibri Resources extended an agreement with Agnico Eagle on the disposal of Colibri’s share on the Pitaya project in Sonora.  ON SOCIAL RESPONSIBILITY. Peñoles is conducting courses for children and adults at its Torreon community center. Ternium is organizing health festivals in Nuevo Leon, Coahuila, Jalisco, Michoacan, Puebla and San Luis Potosi. Argonaut sponsored the third edition of the La Colorada race, within the pit benches at the mine in Sonora. The “Doctor Vagón”  itinerant health clinic sponsored by Grupo Mexico provided service to 550 persons in Gomez Palacio, Durango. La Brisa mining company provided cleaning equipment to the Topia community in Durango. Peñoles mining units source 35% of its energy requirements by removable sources, and expects to reach 100% by 2028.

ON MEXICO ISSUES

  • During 2019 investments in the mining sector are to reach five billion (5 mil millones) dollars, according to Francisco Quiroga, Subsecretary of Mining. That’s a decrease from the eight billion (8 mil millones) invested in 2018.
  • Camimex organized the Seminario Fiscal de la Industria Minera in Queretaro. Camimex compromise is complete on its involvement on the “mesa de diálogo” (dialogue meetings) with the federal government, where proposals to incentivize investment are to be exposed, checking on subjects like the fiscal situation, regulatory environment and security. The head of Camimex, Karen Flores, explained that on the Fraser Institute study Mexico is number 71 of 83 jurisdictions on the fiscal regime. Camimex is for the 100 percent deduction of exploration expenses, and the establishment of pacts of fiscal stability on a 15 to 20 year time frame, as is Peru, Chile and Argentina. In a comparative study, Mexico has the heaviest fiscal load among peers like the US (Arizona), Canada (Ontario), Peru and Chile.
  • Minera Gorrión (Almaden) published a letter on indigenous population around the Ixtaca project in Puebla. Although indigenous persons inhabit the area, there is not such an indigenous community within the area of influence of the project. The company stresses the misinformation produced by some activists groups with total impunity, and reaffirms its confidence on institutions and the rule of law.
  • Promperú organized in Hermosillo, Sonora, its II Commercial Mission of Suppliers to Mining in Peru. Several conferences were presented by members of the mining communities and governments of both countries.
  • The top 10 silver mining companies in Mexico had a solid third quarter. During the period these companies produced 39.8 M Oz, compared with 39.0 M Oz produced on the same quarter a year ago. The top producer is Industrias Peñoles, with 15.3 M Oz almost 40% of that amount and 2.2 M Oz less than the same quarter 2018 (Fresnillo, Saucito, San julian, Sabinas). Newmont was the second largest producer with 7.4 M Oz produced at Peñasquito. Other large producers comprise Southern Copper with 3.9 M Oz (undisclosed units), Pan American with 3.6 M Oz (La Colorada), First Majestic (Santa Elena, San Dimas, among others), Coeur Mining with 1.7 M Oz (Palmarejo), Fortuna Silver with 1.7 M Oz Ag (San José), Minera Frisco 1.1 M Oz (El Coronel, San Felipe, Tayahua, San Francisco del Oro, Concheño and Ocampo), Endeavour Silver 900 K Oz (El Cubo, Bolañitos, Guanceví, and El Compás) and Agnico Eagle 800 K Oz (Pinos Altos).
  • Alberto Aguilar, a respected columnist in business circles, elaborated on the hurdles the mining industry is going through with the current federal administration (it fell 3.7% on the third quarter, 2019). Among the issues mentioned is the contraction in mineral production as a result of the imposition of new taxes on mining in 2014, the investment of only 5 billion dollars in 2019 (8 billion in 2018), no concessions have been granted in 2019 and the recurrent illegal blockades without sign of easing. The latest hurdle thrown at the industry is the resolution by SEMARNAT (the Mexican environmental agency) that the Manifestation on Environmental Impact (MIA) for the Ixtaca project in Puebla was not to be granted until a legal suit on a claim no longer held by Minera Gorrion (Almaden Minerals) reaches a resolution. Exploration expenses so far have been $40 M dollars and another $117 M are still to be spent, along with $1.1 B (One billion) to be invested in eleven years (GPM Note.- The head of SEMARNAT, Victor Toledo, is known for its public and vocal anti-mining stance).

ON EXPLORATION

  • Vizsla Resources Corp. released high-grade channel sampling at its Panuco property in Sinaloa. The sampling locations are widespread within the property and the highlighted results comprise: 0.9 m @ 1,860 gpt Ag, 14.55 gpt Au at the Napoleon vein; 0.5 m @ 1,900 gpt Ag, 29.30 gpt Au at the San Antonio-Cordon de Oro vein; 3.6 m @ 691 gpt Ag, 7.00 gpt Au at the San Carlos-Animas vein; 5.95 m @ 584 gpt Ag, 3.97 gpt Au. Veins in the project have lengths of up to 2.8 km, with known ore shoots of up to 500 m in length.
  • Evrim Resources Corp. updated the description on its El Llanito del Nogal property in Sonora. The Suanse porphyry target, is a 1 Km by 600 m area of propylitic to potassic alteration. Soil sampling outlined a 600 m by 500 m Cu anomaly (>100 ppm) in areas of sheeted quartz-chalcopyrite-chlorite-magnetite veins. A ground magnetic survey outlined a donut-shaped anomaly 400 m in diameter and roughly coincident with the soil anomaly. The soil and magnetic anomalies extend northward onto the Suanse claim (see deals section below) where strong argillic, advanced argillic along with vuggy and massive quartz alteration are interpreted as a partially eroded lithocap.
  • Magna Gold Corp. reported assay results on the last four RC holes drilled at the La Lamosa target on its Mercedes project in Sonora. Highlighted intervals comprise: 38.10 m @ 0.67 gpt Au, 13.2 gpt Ag (including 6.10 m @ 1.43 gpt Au, 42.9 gpt Ag); 28.96 m @ 0.76 gpt Au, 8.9 gpt Ag (including 7.62 m @ 1.06 gpt Au, 9.3 gpt Ag); 21.34 m @ 1.61 gpt Au, 2.2 gpt Ag (including 3.05 m @ 6.99 gpt Au, 3.9 gpt Ag); 21.34 m @ 1.21 gpt Au, 11.8 gpt Ag (including 3.05 m @ 4.26 gpt Au). Other targets to follow up include the 600 m long La Lamosa East projection, the Mina de Oro 300 m by 150 m silicified/argillized andesite and rhyodacite, the Salto Colorado breccia 400 m by 150 m in size and Noche Buena, forming a prominent ridge in a 900 m by 800 m area with tourmaline breccias.

ON MINING

  • Premier Gold Mines Ltd. Reported operating results for the third quarter 2019, including figures from its operations in Mexico. At Mercedes, in Sonora, 159.4 K tonnes were milled @ 2.94 gpt Au, 22.6 gpt Ag, recovering 95.9% Au, 32.3% Ag to produce 14,481 Oz Au, 37.5 K Oz Ag at co-product cash cost $1,095 per Oz Au, and co-product AISC $1,354 Oz Au.
  • Golden Minerals Co. announced financial results for the third quarter 2019. The company had revenue of US$1.9 M and a net operating margin of $1.3 M related to the lease of the Velardeña oxide plant to Hecla Mining Co.. By the end of the period the company had cash and cash equivalents of $2.9 M. During October an agreement was achieved with Magellan Gold Corp. to option a 100% interest in the Santa Maria and Las Marias exploration properties in Chihuahua.
  • Consolidated Zinc Ltd. signed and offtake agreement with Industrias Peñoles S.A. de C.V. for zinc concentrate produced from the Plomosas mine to December 2020, with an option to be extended for a further two years.
  • Starcore International Mines Ltd. released production results from its San Martin mine in Queretaro for the three months ended on October 31, 2019. During the period 54.1 K tonnes were milled @ 1.78 gpt Au, 34.2 gpt Ag, with a recovery of 87.35% Au, 52.27% Ag to produce 3,050 Oz AuEq.
  • Americas Gold and Silver Corp. reported consolidated and operational results for Q3 2019, with undisclosed figures from its Mexican operations (Cosalá, Sinaloa).
  • Sierra Metals Inc. reported third quarter 2019 results, including information from its Mexican operations. The company is approaching is production target of 4,250 tpd at Bolivar and 1,200 tpd at Cusi, both in Chihuahua. Bolivar’s cash cost per CuEq Lb was $1.40, and the AISC $2.53. Cusi’s cash cost was $18.77 and AISC $24.60. During the period 9,923 m were drilled from the surface at Bolivar, and 3,220 m within the Cusi mine. At the end of the period cash and cash equivalents were $40.1 M, with a net debt of $50.9 M.
  • Odyssey Marine Exploration Inc. reported results for the third quarter 2019. Net loss for the period was $4.2 M due to several non-recurring items (Exploraciones Oceánicas project, Baja California Sur).
  • Fortuna Silver Mines Inc. reported third quarter results for 2019, including figures from its Mexican operations. At San José, in Oaxaca, 268 K tonnes were milled at a rate of 3,046 tpd and a grade of 219 gpt Ag, 1.40 gpt Au, recovering 91% Ag, 91% Au to produce 1.7 M Oz Ag and 10,942 Oz Au at cash cost $7.70 per Oz AgEq and an AISC of $10.80 per Oz AgEq.

ON FINANCING

  • Tamino Minerals Inc. informed that during the third week of September the company traded 145 M shares with a volume of US $1.1 M and a price per share appreciation of US$0.01” (El Volcan, Sonora).
  • Mexican Gold Corp. has received TSX Venture Exchange approval for the listing of 50 M warrants from the non-brokered private placement announced in past July.
  • Colibri Resource Corp. has entered into a loan agreement with Agnico Eagle Mines Ltd. For proceeds of US$300 K. The loan has a 2 year term at a 10% interest rate and proceeds are to be used on the Evelyin project in Sonora.

ON RESOURCES AND DEVELOPMENT

  • Defiance Silver Corp. is to start a two-phase technical program at its San Acacio property in Zacatecas. The program envisages evaluating the San Acacio resource at depth and brownfield targets on the Veta Grande system.
  • Endeavour Silver Corp. reported positive initial drill results for El Curso property, adjacent to Endeavour’s Guanaceví mine in Durango. The property includes the Santacruz vein, which is between two Endeavour’s developments. Drilling highlights comprise true width (tw) intervals: 5.2 m @ 0.75 gpt Au, 465 gpt Ag; 2.6 m @ 1.23 gpt Au, 558 gpt Ag; 2.1 m @ 2.51 gpt Au, 935 gpt Ag; 2.5 m @ 0.40 gpt Au, 204 gpt Ag; 5.1 m @ 3.07 gpt Au, 1,182 gpt Ag (including 0.5 m @ 15.22 gpt Au, 5,372 gpt Ag); 4.3 m @ 2.2 gpt Au, 1,021 gpt Ag; 2.7 m @ 1.37 gpt Au, 355 gpt Ag; 6.2 m @ 1.70 gpt Au, 635 gpt Ag.
  • Industrias Peñoles S.A.B de C.V. is to invest US$70 M in its Met-Mex installations (in Torreon, Coahuila) to better the silver recovery in zinc concentrates. In 2018, the company commissioned a US$327 M modification on the plant that avoids the generation of additional sulphuric acid by direct concentrate leaching instead of roasting, augmenting the capacity from 240 K to 360 K tonnes of zinc.
  • SilverCrest Metals Inc. announced expansion drill results from the Babi Vista vein in the Babicanora area of the Las Chispas project in Sonora. The highlighted true width (tw) intervals from these 17 holes comprise: 2.3 m @ 2.27 gpt Au, 215 gpt Ag; 0.4 m @ 3.55 gpt Au, 385 gpt Ag; 0.9 m @ 4.86 gpt Au, 600 gpt Ag; 0.4 m @ 1.10 gpt Au, 187 gpt Ag; 0.6 m @ 1.09 gpt Au, 92 gpt Ag; 2.0 m @ 1.84 gpt Au, 433 gpt Au, 1.2 m @ 2.56 gpt Au, 296 gpt Ag; 8.8 m @ 7.36 gpt Au, 584 gpt Ag (including 0.3 m @ 120.50 gpt Au, 9,510 gpt Ag; 0.7 m @ 18.15 gpt Au, 1,495 gpt Ag); 6.6 m @ 3.37 gpt Au, 250 gpt Ag (including 0.4 m @ 32.70 gpt Au, 2,940 gpt Ag). So far the high-grade footprint is 150 m along the strike of the vein and 200 m to depth, open in most directions, averaging 2.2 m @ 4.70 gpt Au, 401 gpt Ag.
  • Bacanora Lithium plc. updated on project activities at its Sonora Lithium project. Final design work for the mine site, infrastructure, concentrator and kiln sections of the processing plant is in progress. Detailed engineering plans for the design of the front-end concentrator and mechanical processing is underway, as well as the pyrometallurgical engineering, while the hydrometallurgical plant, including the production of the final battery grade lithium product will be engineered by Ganfeng.

ON DEALS AND CORPORATE ISSUES

  • Evrim Resources Corp. signed an agreement with San Marco Resources to acquire the Suanse property in Sonora. The 1,115 hectares property is within Evrim’s Llano del Nogal claim. Evrim can acquire 100% interest in the project by making total cash payments of $75 K and granting San Marco a 1% royalty half of which can be repurchased for $1 M. Cash payments are: $25 K on signing, $25 K on signing a JV or partnership with third parties and $25 K upon completion of 1,000 m of drilling.
  • Colibri Resource Corp. granted a two-year extension to its agreement with Agnico Eagle Mines Ltd., allowing Agnico to exclusively explore opportunities to dispose of Colibri’s working interest in its JV on the 5,564 hectares Pitaya project in Sonora.

ON SOCIAL RESPONSIBILITY

  • The Peñoles Community Center (Centro Comunitario Peñoles) in Torreon, Coahuila, is conducting courses for children and adults, including English, music, drawing, tae kwon do, tae chi and modern dance and dance for weight reduction.
  • Ternium organizes the Health Festivals (Ferias de La Salud) in Nuevo Leon, Coahuila, Colima, Jalisco, Michoacan, Puebla and San Luis Potosi, in coordination with several organizations and government institutions. Each year almost 6,000 persons receive this benefit, including cost-free diverse medical examinations (like sight, Papanicolau, mamographies) and flu shots.
  • The La Colorada race was held in Sonora for the third time. The race sponsored by Argonaut Gold was attended by hundreds of runners on the benches of La Colorada mine.
  • The technical school Roberto Rocca (partly supported by Ternium) is to represent Mexico in the World’s Educative Robotics Tournament, to be held in Shanghai, China.
  • The “Doctor Vagón” program sponsored by the Grupo Mexico Foundation (a train adapted for medical services) was four days at Gomez Palacio, Durango, with the aid of the local municipality. During that time 2,200 services were provided to the 550 persons that registered to the effect.
  • In Topia, Durango, Minera La Brisa supported the municipality providing cleaning equipment.
  • Industrias Mineras Peñoles announced that to 2018 up to 35% of the energy requirements at its mining units is fulfilled by renewable energy sources. The company is striving to reach at least a 50% in 2020 and to be completely reliant on renewable energy sources by 2028.

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: Gold recovered by artisanal methods from orogenic style quartz veins in Oaxaca.. Picture by Jorge Cirett.

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

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By Jorge Cirett

During the 44th week of the year (October 28th to November 3rd, 2019), at least 33 press releases were forwarde by companies working in Mexico. ON MEXICO ISSUES, The Morena party reassigned the Mining Fund, taking it away from its intended purpose of helping and developing mining communities. All big organizations related to mining in Mexico presented a petition to the president to rebuke the channelling of the Mining Fund away from its intended goal of helping mining communities. The governors of Sonora, Durango, Zacatecas and Guerrero sent a letter to the president of Mexico asking not to affect the communities by withdrawing the Mining Fund. On other matters, the AIMMGM informed mining companies expect to invest more than US$26 billion in six years. The illegal blockade on the Peñasquito mine in Zacatecas was lifted, with negotiations to continue shortly. The El Castillo mine access in Durango was illegally blocked for a few days, and then released, while negotiations proceed with community involved. ON EXPLORATION, in Sonora, Magna Gold informed it has two projects in the state, Mercedes near Yecora and San Judas, near Trincheras. In Chihuahua, Wealth Minerals negotiated surface access to its Valsequillo project. In Durango, Gainey Capital halted drilling activities while discussions with the local indigenous groups proceed.  ON MINING, Gold Resource, Consolidated Zinc, McEwen Mining, Santacruz Silver, Premier Gold, Torex Gold, Americas Silver and sierra Metals released third quarter 2019 production results. Telson Mining is to re-commence mining at Campo Morado in Guerrero. ON FINANCING, Goldplay Exploration filed an amended and restated condensed interim consolidated financial statement. Oroco Resource informed the exercising of warrants for $720 K. Starcore Interantional has resumed trading on the OTC Pink market. ON RESOURCES AND DEVELOPMENT, Pan American Silver released impressive results from 14,300 m of drilling at its La Colorada mine in Zacatecas. Mexican Gold Corp updated on its current drilling program at Las Minas, Veracruz. ON DEALS AND CORPORATE ISSUES, Telson Mining is to re-start mining at Campo Morado, in Guerrero, under a notice of default and demand for payment by Nyrstar. Prime Mining signed a public relations contract with Brisco Capital Partners. Oceanus is using now a service for virtual tours on remote locations. Santacruz and Peñoles extended a lease agreement on the Zimapan mine in Hidalgo. Almaden Minerals was informed by SEMARNAT that the permitting process for its Ixtaca mine in Puebla is suspended until a judicial resolution is reached (the head of the institution is openly against open pit mining).  ON SOCIAL RESPONSIBILITY. Alamos Gold reunited all the students under its scholarship program in three venues, Matarachi, Sahuaripa and Hermosillo.

ON MEXICO ISSUES

  • Last week the Morena party majority reassigned the Mining Fund (Fondo para el Desarrollo Regional Sustentable de Estados y Municipios Mineros) to education spending.  The fund is gathered on a 7% (increased to 7.5% in gold and silver) royalties on extracted minerals implemented in 2014 to aid with the infrastructure, health, education and sustainability of mining communities.
  • The Asociación de Ingenieros de Minas, Metalurgistas y Geólogos de México (AIMMGM) informed that mining companies expect to invest more than US$26 billion in six years. If such investments come to be realized, 50 thousand direct jobs and 274 thousand indirect jobs could be generated, and mining companies would pay an additional 23,500 million in taxes. Just last year the industry paid 46,159 million pesos on income tax (Impuesto sobre la renta, ISR).
  • On October 26th, the Zacatecas governor Alejandro Tello informed that security forces are inviting the group that (illegally) blocks the entrance to the Peñasquito mine to leave the site. The governor also informed that a number of the blockers might be pursued judicially, some by the state and some by the federal government. He stated that he’s is been in contact with the sub secretary of the interior (Subsecretario de Gobernación), with whom also the company executives, communal farmers (ejidatarios) and the state government have been in dialogue rounds.
  • The Cámara Minera de México (CAMIMEX), the Grupo de Minería de la Cámara de Comercio de Canadá, the Asociación de Ingenieros de Minas, Metalurgistas y Geológos de México, the organization in mining Mujeres WIM de México and the Colegio de Ingenieros de Minas, Metalurgistas y Geólogos de México received with great worry de Senate decision to approve an unjust redistribution of the Mining Fund (Fondo Minero), braking the spirit on which the fund was created to benefit mining communities. The priority for the sector is that the resources reach the communities and municipalities where they were generated, contributing with independent actions by mining companies to the social welfare and community development in areas away from urban centers, aiding to reach greater life quality, development and wellbeing. Miners are appalled by the Congress decision, same that dismissed petitions by state governors, municipality presidents, from the industry and mining communities to guarantee the return of funds to these localities. A strong and respectful call is made to the authorities to reconsider the distribution methodology for the resources and operational rules of the fund, where it should be clearly established that these funds are to be funnelled exclusively to mining communities, municipalities and states. The mining industry refresh its compromise to continue to be an agent of change, a block that forwards sustainability practices and is and active player that contributes to a greater well-being for thousands of miner families and millions of Mexicans. We consider ourselves as the best federal government ally to achieve the more valuable social objectives sought by new government project. The Camara Minera de Mexico is the first camera of industries formed in the country, representing the interests of the mining-metallurgical industry in the country.
  • Argonaut Gold Inc. informed on an illegal blockade at its El Castillo mine in Durango. The Company has a legal and binding agreement in place with Atotonilco ejido that was signed and recognized by both the Atotonilco ejido and the Mexican government in 2012 and runs through 2022. The blockade lifting was announced on October 30, with an agreement with the ejido pending to be ratified on November 11.
  • Newmont Goldcorp confirmed that free access to its Peñasquito installations in  Zacatecas is complete as of last Sunday (Oct. 27). Access to the mine had been blocked by a small group of communal agriculture workers (ejidatarios) and truckdrivers. The company is to restart the social investment programmes in the next few days, and expects to initiate on November 19 the new program “Juntos Dejamos Legado”, which aims to support schools and sport activities in 25 nearby communities. The ending of the blockade was achieved with government executives having dialog with the blockers, with the presence of the national guard (Guardia Nacional) and the state police (Policía Estatal Preventiva), stressing that further negotiations were to proceed only without the blockade in place.
  • The governors of Sonora, Claudia Pavlovich; Zacatecas, Alejandro Tello; Durango, José Rosas, and Guerrero, Héctor Astudillo, sent a letter to the president of México asking not to affect the communities by withdrawing the mining fund.

ON EXPLORATION

  • Gainey Capital Corp. temporarily halted all drilling activities at its Las Margaritas property in Durango, following discussions with the local indigenous groups (Las Margaritas, Durango).
  • Magna Gold Corp. informed it has two projects in Sonora. The flagship 1,239 ha Mercedes project in Yecora, and the recently acquired San Judas project in Trincheras.
  • Wealth Minerals Ltd. successfully negotiated surface access rights to its Valsequillo property in Chihuahua. The company has an option to acquire 100% interest in the 2,840 ha property. Past artisanal mining activity concentrated on a number of epithermal, Zn-Pb-Cu-Ag veins, stockworks and silicified zones concentrated within two NW trending corridors. Rock sample results of up to 2.68 gpt Au, 629 gpt Ag, 9.5% Cu, 16.5% Pb, 6.4% Zn have been obtained.

ON MINING

  • Telson Mining Corp. announced the recommence of mining operations at its Campo Morado mine in Guerrero. This is the result of improved relations with the local community and a better zinc price. The company anticipates initiating full mining activities and processing operations near the beginning of December 2019.
  • Argonaut Gold Inc. informed on an illegal blockade at its El Castillo mine in Durango. The Company has a legal and binding agreement in place with Atotonilco ejido that was signed and recognized by both the Atotonilco ejido and the Mexican government in 2012 and runs through 2022.
  • Gold Resource Corp. reported gold production for the third quarter of 2019, including figures from its Oaxaca Mining Unit. The Arista mine milled 163.3 K tonnes @ 1.76 gpt Au, 85 gpt Ag, 0.39% Cu, 1.9% Pb, 4.7% Zn; the Aguila open pit mine milled 3.6 K tonnes @ 1.49 gpt Au, 58 gpt Ag; the Mirador mine milled 11.7 K tonnes @ 0.76 gpt Au, 197 gpt Ag. In total, 178.6 K tonnes were milled at a rate of 2,007 tonnes per day, to produce 7,462 Oz Au, 473.8 K Oz Ag, 492 tonnes Cu, 2,459 tonnes Pb, 6,057 tonnes Zn. Total cash cost after by-product credits was $197 per AuEq ounce and total all-in sustaining cost was $520 per AuEq ounce for the period.
  • Consolidated Zinc Ltd. released its third quarter 2019 activities report. The acquisition of the Plomosas mine in Chihuahua was completed, getting the remaining 10% ownership in exchange for a 1% NSR royalty. During the quarter 7,511 tonnes were mined @ 13.5% Zn, 8.2% Pb, and 9,120 tonnes were processed @ 12.5% Zn, 7.9% Pb.
  • McEwen Mining Inc. presented its third quarter 2019 report, including activities at its El Gallo mine in Mexico. During the third quarter the mine produced 3,057 Oz AuEq from residual leaching, at cash cost $1,153 and $1,177 AISC per Oz AuEq. Work on the Fenix Project feasibility study and permitting is progressing.
  • Pan American Silver Corp. released results from 14,300 m of drilling during the third quarter 2019 on its La Colorada mine in Zacatecas (see Resources and Development section) .
  • Santacruz Silver Mining Ltd. reported its third quarter 2019 production. Consolidated production was 956.5 K Oz AgEq. At Zimapan, in Hidalgo, 82.2 K tonnes were processed @ 75 gpt Ag, 0.59% Pb, 2.28% Zn, 0.48% Cu to produce 151.5 K Oz Ag (75% recovery), 463 tonnes Pb, 1,492 tonnes Zn, 316 tonnes Cu. At Veta Grande, in Zacatecas, 44 K tonnes were processed @ 99 gpt Ag, 0.24 gpt Au, 1.45% Pb, 2.11% Zn to produce 62.4 K Oz Ag (45% recovery), 139 Oz Au, 370 tonnes Pb, 519 tonnes Zn. At Rosario, in San Luis Potosi, 22 K tonnes were processed @ 65 gpt Ag, 0.25 gpt Au, 0.40% Pb, 2.04% Zn to produce 43 K Oz Ag (93% recovery).
  • Premier Gold Mines Ltd. announced Q3 2019 production results, including 14,481 Oz Au and 37.5 K Oz Ag from its Mexican operations at Mercedes, in Sonora.
  • Torex Gold Resources Inc. reported third quarter 2019 results. At its El Limon-Guajes mine in Guerrero, the company produced 138,145 Oz Au, mine production averaged 144,989 tonnes per day (tpd), mine ore production averaged 15,391 tpd @ 3.19 gpt Au, with a plant throughput of 12,380 tpd @ 4.11 gpt Au, recovering 89% Au at cash cost $561 and AISC of $675.
  • Americas Gold and Silver Corp. released third quarter 2019 production results, including figures from its Cosalá operations in Sinaloa. At the site 151.2 K tonnes were milled to produce 128.8 K Oz Ag, 10.1 M Lb Zn, 3.7 M Lb Pb (or 1 M Oz AgEq), at cash cost -$10.82 per Oz Ag, and an AISC of -$1.49 per Oz Ag after sub-product credits.
  • Sierra Metals Inc. reported its Q3-2019 financial results, not including figures from its operations in Mexico. The company had $29.0 M of cash and cash equivalents at the end of the period (Bolivar, Chihuahua).

ON FINANCING

  • Goldplay Exploration Ltd. filed an amended and restated condensed interim consolidated financial statement and management discussion and analysis for the six months ended June 30, 2019, adding the following disclosure “in Note 11 – Related Party Transactions; The Company issued 480,000 common shares valued at $60,000 as debt settlement with officers and a director of the Company and in Note 12 – Share Capital and Reserves; the Company issued 600,000 common shares valued at $75,000 as debt settlement including $60,000 to related parties” (San Marcial, Sinaloa).
  • Oroco Resource Corp. informed that warrant holders from a unit offering completed on April 2018 have fully exercised the purchase warrants providing the company $720 K (Santo Tomás, Sinaloa).
  • Starcore International Mines Ltd. announced it has resumed trading on the OTC Pink markets in USA under the symbol “SHVLF” (San Martin, Queretaro).

ON RESOURCES AND DEVELOPMENT

  • Pan American Silver Corp. released results (impressive) from 14,300 m of drilling during the third quarter on the La Colorada skarn discovery in Zacatecas. Drill highlights comprise 250.9 m @ 40 gpt Ag, 0.08% Cu, 2.6% Pb, 3.4% Zn (including 78.9 m @ 60 gpt Ag, 0.09% Cu, 3.9% Pb, 4.8% Zn); 72.3 m @ 37 gpt Ag, 0.16% Cu, 3.8% Pb, 6.3% Zn and 56.6 m @ 39 gpt Ag, 0.10% Cu, 3.3% Pb, 6.6% Zn; 124.8 m @ 42 gpt Ag, 0.08% Cu, 2.4% Pb, 3.1% Zn; 252.9 m @ 67 gpt Ag, 0.19% Cu, 3.8% Pb, 6.6% Zn (including 27.3 m @ 108 gpt Ag, 0.20% Cu, 8.1% Pb, 13.7% Zn and 148.6 m @ 81 gpt Ag, 0.23% Cu, 4.4% Pb, 7.7% Zn); 132.5 m @ 56 gpt Ag, 0.19% Cu, 3.8% Pb, 6.3% Zn and 139.2 m @ 54 gpt Ag, 0.15% Cu, 1.8% Pb, 5.9% Zn; 379.0 m @ 54 gpt Ag, 0.50% Cu, 2.0% Pb, 3.7% Zn (including 66.7 m @ 154 gpt Ag, 2.07% Cu, 1.0% Pb, 1.6% Zn).
  • Mexican Gold Corp. updated on its current drill program at its Las Minas project in Veracruz. To date 655 m have been drilled on five holes, with three holes testing El Dorado zone, another 261 m hole tested an electromagnetic anomaly, while the hole currently being drilled is also testing a 350 m extension of the same anomaly.

ON DEALS AND CORPORATE ISSUES

  • Telson Mining Corp. informed that as a result of suspending operations at Campo Morado in August 2019 under force majeur conditions, Telson has been without cash flows resulting in non-payment under the loan agreement with Nyrstar Holdings Ltd. This has resulted in Nyrstar issuing a notice of default and demand for payment. Telson’s outstanding debt under this loan agreement including principal and interest is approximately US$6 M. Telson expects to be able to recommence outstanding payments to Nyrstar while exploring other financing alternatives.
  • Prime Mining Corp. entered into contractual agreements for marketing, advertising, shareholder engagement and social media communications with Brisco Capital Partners Corp. for a monthly retainer for a minimum of a CDN$10 K and a maximum of CDN$50 K (Guadalupe de Los Reyes, Sinaloa).
  • Oceanus Resources Corp. announced that is now live on VRIFY, a platform being used by companies to communicate with investors using virtual tours of remote mining assets, 3D models and interactive presentations (El Tigre, Sonora).
  • Santacruz Silver Mining Ltd. and Peñoles, each by mean of a subsidiary, extended the Zimapan mine lease agreement from December 31,2019 to December 31, 2020. Santacruz must make monthly payments to Peñoles based on a 4% NSR, subject to a minimum US$45 K and a maximum of US$60 K per month. The extension provides more time for the negotiation of terms of a potential acquisition of the Zimapan mine in Hidalgo.
  • Almaden Minerals Ltd. was notified by SEMARNAT (Mexico’s environmental authority) that the permitting process for the Ixtaca project in Puebla has been suspended pending resolution of a mineral title lawsuit previously reported. “Under the Lawsuit, certain organisations have supported legal challenges against the Government of Mexico and the Mexican mineral title regime using the Company’s mineral claims as a basis for their challenges. The Lawsuit contends that the issuance of Almaden’s original mineral titles violated human rights and did not respect Mexico’s commitment to indigenous consultation under United Nations Instrument ILO 169…… o. In April, 2019, a Lower Court in Puebla State ruled that the Mexican mineral title system is unconstitutional and as a result these original mineral claims should be held exclusively for Almaden until such time as consultation can be completed. This Lower Court decision has now been appealed by the Mexican Congress, Senate, Secretary of Economy and Mining authorities, as well as Almaden as an affected party. The Lawsuit remains before the Courts”. SEMARNAT was informed on October 24 that the company completed the necessary steps to abandon its mineral claims in the area of the complaint in 2017.
  • Bacanora Lithium is using Veolia Water Technologies Division with its HPD evaporation and crystallisation technologies to validate Bacanora Lithium’s product purity requirements at the Sonor lithium project, while removing potassium and converting it into a sub-product. Veolia engineered and designed the production process that recovers lithium carbonate and sulphate of potash from clay deposits.

ON SOCIAL RESPONSIBILITY

  • Minas de Oro Nacional (Alamos Gold) reunited in Matarachi, Sahuaripa and Hermosillo (Sonora) all the 185 students currently receiving scholarships to study in Matarachi, Sahuaripa, Arivechi, Chihuahua, Cuahutémoc and San Luis Rio Colorado. The ceremony in Hermosillo was held with company and state executives, including the state governor, the Mining Director, the director of DIF, the director of the Sonora Mining Cluster, the director of the Miners Association of Sonora and the SEC sub-secretary of Basic Education.

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 veinlet from a 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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