Highlights

Highlights on the Second Week of December, 2018. Mining and Exploration News in Mexico

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Silicification along fractures produces protruding ribs in strongly argillitized andesitic rock in a project in Jalisco

By Jorge Cirett

During the 50th week ofthe year (December 10th to December 16th, 2018), at least 12 press releases were announced by companies working in Mexico. Chesapeake Gold and Ridgestone released news on exploration. SSR Mining-SilverCrest and Goldplay Exploration announced news on financing. Azure Minerals, Coeur Mining,Endeavour Silver, SilverCrest Metals and Capstone presented news on resource definition drilling. Camrova Resources and Prospero Silver presented news on deals and corporate issues. ON MEXICO ISSUES, Five miners died on three different accidents in mines of Chihuahua and Sonora. The Mining Fund is to be controlled by the “Secretaría deEconomía”, instead of the SEDATU. ONEXPLORATION, In Sonora, Ridgestone Mining released drilling results from its Rebeico project. In Sinaloa, Chesapeake Gold released exploration results from its Yareli project. In Veracruz, Chesapeake Gold released interesting results from its Tatatila Au-Cu project in Veracruz. ON MINING, No relevant News. ON FINANCING, SSR Mining completed the buy of C$30.66 M on shares of SilverCrest Metals. Goldplay Exploration completed a $1.5 M financing round. ON RESOURCES AND DEVELOPMENT, Azure Minerals, Coeur Mining,Endeavour Silver, SilverCrest Metals released drilling results to better define resources in their properties. Capstone released an updated resource on its Cozamin mine in Zacatecas.  ON DEALS AND CORPORATE ISSUES, Camrova Resources is to sue Korea Resources over an unpaid debt. Prospero Silver announced Fortuna Silver’s exercise on the option to to continue exploring the Pachuca SE project in Hidalgo.

ON MEXICO ISSUES

  • On a grim week for the mining industry in Mexico, five miners died in three different accidents. In Chihuahua one miner died on the Granadeña mine, and two in Coeur’s Guadalupe mine at Palmarejo. In Sonora, two Alamos Gold miners died after a pit wall collapsed at the Mulatos mine. On other matters, the Mining Fund (Fondo Minero) created in 2013 to aid development of communities near to mineral production centers, is to be controlled from 2019 by the Economy Secretariat (Secretaría de Economía). Up to this year the fund was managed by the Urban, Agrarian and Land Development Secretariat (Secretaría de Desarrollo Agrario, Territorial y Urbano). Another change is that 80% of the resources are to be invested in “zones of mining production”, while the Economy Secretariat keeps 10% and the Federal Government the remaining 10%.

ON EXPLORATION

  • Chesapeake Gold Corp. updated on exploration efforts at its Yarely (includes, Los Mimbres, Sundae and Goyo prospects) and Tatatila projects in Sinaloa and Veracruz respectively. At Los Mimbres, channel sampling of veins and stockworks returned 7 m @ 1.15 g/t Au, 88 g/t Ag; 7 m @ 0.9 g/t Au, 87 g/t Ag; 5 m @ 0.11 g/t Au, 196 g/t Ag; 31 m @ 0.3 g/t Au, 14 g/t Ag; 10 m @ 0.24 g/t Au, 5 g/t Ag. At Sundae, sampling of veins displaying classic high level epithermal textures returned up to 0.1 g/t Au, 8 g/t Ag on surface exposures. At Goyo, assays from two rock chip channel sections taken 100 m apart returned: 30 m of 1.63 g/t Au, 38 g/t Ag; 15 m of 0.60 g/t Au, 9 g/t Ag. Another structure returned 4 m @ 3.74 g/t Au, 90 g/t Ag; 5 m @ 1.3 g/t Au, 15 g/t Ag; 25 m @ 0.54 g/t Au, 35 g/t Ag. At Tatatila the target is Au-Cu skarns like those at Las Minas, Veracruz, which it surrounds. Rock chip sampling results in six different zones of the 15,000 ha land package include: 12 m @ 3.0 g/t Au, 0.24% Cu; 6 m @ 5.1 g/t Au, 0.46% Cu; 18 m @ 3.8 g/t Au, 0.50% Cu; 11 m @ 0.24 g/t Au, 37 g/t Ag, 12.9% Zn; 12 m @ 1.0 g/t Au, 0.35% Cu, 0.22% Zn; 6 m @ 0.30 g/t Au, 0.12% Cu, 2.05% Zn; 12 m @ 0.50 g/t Au, 0.40% Cu, 0.70% Zn; 9 m @ 2.3 g/t Au, 0.30% Cu; 11 m @ 1.4 g/t Au, 0.47% Cu, 9 m @ 0.90 g/t Au, 2.0% Cu, 67 m @ 1.6 g/t Au, 0.60% Cu; 21 m @ 2.2 g/t Au, 0.27% Cu; 15 m @ 2.3 g/t Au, 0.30% Cu; 9 m @ 1.2 g/t Au, 0.25% Cu; 11 m @ 1.4 g/t Au ,0.36% Cu; 8 m @ 1.0 g/t Au, 1.25% Cu.
  • Ridgestone Mining Inc. received results for four holes from the twelve hole drill program at its Rebeico project in Sonora. The drilling was designed to test beneath underground workings along a 500 m portion of the 1.2 km long Alaska vein. Highlighted intervals comprise 0.62 m @ 1.02 g/t Au, 0.96% Cu; 0.80 m @ 2.95 g/t Au, 1.41% Cu in the first hole.  Contiguous 1.0 m @ 7.8 g/t Au, 1.87% Cu; 9.51 g/t Au, 3.69% Cu in the second hole and 1.40 m @ 3.25 g/t Au; 1.50 m @ 1.39 g/t Au in the fourth hole. Hole four was collared 400 m south from the first two holes, thus establishing the continuity of mineralization.

ON MINING

  • No Relevant News.  

ON FINANCING

  • SSR Mining Inc. completed the transaction with SilverCrest Metals Inc. to purchase, by way of private placement, shares for a total consideration of C$30.66 M (Las Chispas, Sonora).
  • Goldplay Exploration Ltd. closed the final tranche of its non-brokered private placement for gross proceeds of $273.7 K. Total gross proceeds raised under all tranches of this offering was $1.5 M (San Marcial, Sinaloa).

ON RESOURCES AND DEVELOPMENT

  • Azure Minerals Ltd. announced that further infill and extension drilling has returned high-grade mineralization over substantial widths at its Oposura project in Sonora. Highlighted core length intervals comprise 5.25 m @ 24.4% Zn+Pb, including 3.05 m @ 39.3% Zn+Pb.; 8.65 m @ 11.4% Zn+Pb, including 4.55 m @ 19.6% Zn+Pb; 6.0 m @ 11.7% Zn+Pb, including 2.95 m @ 21.9% Zn+Pb; 3.60 m @ 15.5% Zn+Pb, including 2.45 m @ 20.5% Zn+Pb.
  • Coeur Mining Inc. provided an update on exploration, including activities at its Palmarejo mine in Chihuahua. Highlighted results comprise 7.8 m @ 5.7 g/t Au, 833 g/t Ag at La Nación vein; 2.8 m @ 2.3 g/t Au, 337 g/t Ag; 5.2 m @ 2.7 g/t Au, 229 g/t Ag; 6.8 m @ 2.3 g/t Au, 122 g/t Ag at Las Animas zone, where three potentially mineralized areas were discovered, and 4.0 m @ 6.8 g/t Au, 693 g/t Ag at Independencia, which extends mineralization for another 150 m.
Image from the press release
  • Endeavour Silver Corp. reported positive results from surface drilling and underground sampling at the Parral project in Chihuahua. Endeavour owns four historic mines: Veta Colorada (historic resources), LaPalmilla (Endeavour’s resources), San Patricio and Cometa (Endeavour’s resources). “Several large veins are traceable for over 8 km. Veta Colorada is up to 40metres (m) thick, and includes a higher-grade footwall vein 1-10 m thick and a lower grade hanging wall breccia with mineralized stock-work up to 30 m thick”. Highlighted results from drilling at San Patricio comprise: 1.9 m @ 0.1 g/t Au, 660 g/t Ag, 1.3% Pb, 0.6% Zn; 4.2 m @ 0.21 g/t Au, 934 g/t Ag, 3.0% Pb, 5.9% Zn. Sampling of historic mine fill (known as “chorros” or “retaques”) at VetaColorada average (18 samples) 106.3 g/t Ag, 0.45% Pb, 0.37% Zn in Level 2, and average (24 samples) 179.2 g/t Ag; 0.51% Pb, 0.44% Zn on Level 4.
  • SilverCrest Metals Inc. announced further high-grade results from in-fill drilling at its Las Chispas property in Sonora. In-fill drilling of the Babicanora vein area 51 highlighted true width intervals comprise: 8.2 m @ 27.70 g/t Au, 1,116 g/t Ag (including 1.7 m @ 127.50 g/t Au, 3,044 g/t Ag); 1.7 m @ 7.01 g/t Au, 1,348 g/t Ag; 2.5 m @ 15.97 g/t Au, 1,743 g/t Ag; 2.3 m @ 4.53 g/t Au, 748 g/t Ag; 5.6 m @ 9.41 g/t Au, 736 g/t Ag; 1.7 m @ 4.40 g/t Au, 453 g/t Ag; 6.4 m @ 6.41 g/t Au, 657 g/t Ag (including 1.6 m @ 25.87 g/t Au, 2,222 g/t Ag); 3.5 m @ 16.45 g/t Au, 355 g/t Ag; 4.5 m @ 9.25 g/t Au, 673 g/t Ag.   
  • Capstone Mining Corp. released positive results of an updated technical report for its Cozamin mine in Zacatecas. Proven and probable reserves increased to 6.19 M tonnes @ 1.60% Cu, 42.9 g/t Ag, 0.71% Cu, 0.14% Pb. Measured and indicated resources amounted to 17.29 M tonnes @ 1.50 % Cu, 45 g/t Ag, 1.25% Zn, 0.28% Pb, and inferred resources to 16.95 M tonnes @ 1.11% Cu, 44 g/t Ag, 1.65% Zn, 0.29% Pb. The total contained metal in reserves and measured and indicated resources adds to 359 Kt Cu, 33.4 M Oz Ag, 259 Kt Zn, 56 Kt Pb, while the inferred resources contain additional 188 Kt Cu, 23.9 M Oz Ag, 279 Kt Zn, 49 Kt Pb.  By completing a new ramp in 2020, Cozamin plans to increase production by approximately 30%.

ON DEALS AND CORPORATE ISSUES

  • Camrova Resources Inc. presented a press release in which strong complaints were made against Korea Resources Corp. through its controlling interest in Minera y Metalurgica del Boleo S.A.P. (MMB). According to Camrova, Korea Resources has relentlessly ignored Camrova’s petition for board meetings. “Camrova also wishes to announce that it has commenced action and will shortly serve MMB with a judicial notice under applicable Mexican law. This notice is a formal demand for payment of CAD$303,416.60 which is owing by MMB pursuant to a settlement agreement between Camrova and MMB in December 2016” (Boleo, BajaCalifornia Sur).
  • Prospero Silver Corp. announced that Fortuna Silver Mines has exercised its right to be granted an option to acquire up to a 70% interest in the Pachuca SE Project, by spending $8 M in expenditures and completing a preliminary economic assessment, spending a minimum of $1 M in the first year. “The local geology at Pachuca SE is typical of the high-level epithermal environment seen over the Pachuca-Real del Monte mines. Prospero’s land package covers at least 6-7 km of linear, structurally-controlled argillic alteration caps at surface” (Pachuca SE, Hidalgo).

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

Highlights on the Second Week of March, 2018. Mining and Exploration News in Mexico

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By Jorge Cirett

During the 10th week of the year (March 5th to March 11th, 2018), at least 24 press releases were announced by companies working in Mexico, and three articles on mining matters in Mexico published by newspapers. ON MEXICO ISSUES, the Fraser Institute released the results of the 2017 survey on Mining Attractiveness by Jurisdiction, with Mexico stagnant at mid table due to low results on taxation regime, labor disruptions and security perception. The Sonora government is supporting the mining industry with the signature of a collaboration agreement with the Economy Bureau. The governors of Chihuahua and Oaxaca attended the PDAC in Toronto for promoting mining investment in their respective states. Other delegations present were from Durango and Zacatecas. ON EXPLORATION, In Sonora Riverside announced a bigger land position at its Cecilia project; Oceanus has mapped the favorable El Tigre Formation rock package for 5 km in strike length at its El Tigre property; Mexus Gold updated on exploration of its 8 Hermanos property; Millrock disclosed interesting low grade drilling results from its Navidad property; Azure has started the second drill campaign at its Sara Alicia Au-Co property. In Chihuahua VVC Minerals received the permit for drilling its Samalayuca property; Radius updated on exploration at its Amalia project. In Guanajuato, Vangold started the phase two of drilling at its Pinguico property. ON MINING, two companies, Americas Silver and Santacruz Silver presented production results for the quarter and/or full year 2017. Magellan Gold announced the restart of its mill in Nayarit.  ON FINANCING, Canuc Resources closed a $1.1 M financing round, Colibri closed the first tranche of a financing round netting $1.08 M. Vangold announced the opening of a financing round for raising up to $2 M. Santacruz Silver obtained a US$2.3 M private loan. Starcore closed a financing round for $125 K with an insider.  ON RESOURCES AND DEVELOPMENT, Levon Resources released an updated mineral resource report for its Cordero project in Chihuahua. Alio Gold provided an exploration update at its Ana Paula project in Guerrero. Leagold updated its mineral resource estimate for its Los Filos mine and the Bermejal Underground deposits in Guerrero. ON DEALS AND CORPORATE ISSUES, Sonoro Metals acted on the LOI to option a group of properties adjacent to its Cerro Caliche property in Sonora. Autlan is to acquire all shares from Metallorum (it already controls an undisclosed percentage), which owns the Lluvia de Oro mine in Sonora.

ON MEXICO ISSUES

  • Mexico stays about the same on the investment attractiveness index published yearly by the Fraser Institute. Mexico fell to the 50 (of 91 jurisdictions surveyed) position from the 44 (of 104) on the 2016 survey, affected mainly by low rankings in security, taxation regime and labor regulations/work disruptions. In 2014 Mexico was on the 24 position of 122 surveyed. Chile ranked 8 and Peru 19 on the 2017 survey. Below is the table for the perception of the taxation regime (which presents the effect of the recently imposed royalties as a hard fact). The security perception ranking, along the other rankings can be seen at the following link: (https://www.fraserinstitute.org/sites/default/files/survey-of-mining-companies-2017.pdf).Taxation Regime Index, Fraser Institute 20171
  • The Sonora government is supporting the development of the mining industry in the state with the signature of a collaboration agreement with the Economy Bureau (Secretaría de Economía). The agreement looks to promote investment, better technical assessments, training and cut red tape. The mining industry represents 17% of the state’s GDP, with the state providing 31% of Mexico’s mining production. Sonora’s Governor Claudia Pavlovich has been pushing a proposal on the Deputies Chamber to install a 100% deduction of exploration expenses on the year these are incurred.
  • The governors of Chihuahua and Oaxaca attended the PDAC in Toronto Canada to promote mining investment on their states. Both Javier Corral (Chihuahua) and Alejandro Murat (Oaxaca) attended the Mexico Mining Day 2018 and had personal interviews with companies doing business in their states or trying to set a foothold there. Other delegations present were from Durango and Zacatecas.

ON EXPLORATION

  • VVC Minerals Corp. received the permit for drilling at its Samalayuca property in Chihuahua. The SEMARNAT permit approved 22 new drilling sites, in addition to 13 already approved. The drilling is to focus on La Gloria Extension area, La Concha pit area, La Zorra zone and the Julianna, Suerte and Trinidad areas. The completed and proposed drilling cover 7 Km of strike length on the property.
  • Vangold Mining Corp. concludes phase 1 drilling, starts phase 2 drilling at El Pinguico property in Guanajuato. Vangold completed five of 15 drill holes targeting the underground stockpiles (backfill) on the El Pinguico vein, with poor recoveries and grades. While a better method of assessing these stockpiles is researched, the company has initiated the phase 2 drilling campaign targeting the lower El Pinguico vein extension below the old workings, 300 m below the surface.
  • Riverside Resources Inc. announced that it has been granted the mineral rights to the Cecilia 1 concession, increasing the ground held on the Cecilia project in Sonora to almost 6,000 hectares. Epithermal Au-Ag mineralization is associated to a rhyolite flow-dome setting.
  • Oceanus Resources Corp. updated on its exploration efforts on El Tigre property in Sonora. The El Tigre Formation is the rock package that host the historic El Tigre mine, which operated from 1903 to 1938, producing 353 K Oz Au and 67.4 M Oz Ag; the favorable El Tigre Formation has been now traced for 5 km.
  • Mexus Gold US. presented an update on exploration of its 8 Hermanos and Scorpio_370 claims in Sonora. Mexus controls 2,800 hectares in an area with sedimentary rocks intruded by granodiorite, dioritic dikes and a diorite porphyry, all covered in turn by Tertiary volcanic tuffs and flows. Three samples from the 370 concession returned 9 g/t Au, 41 g/t Ag; 47 g/t Au, 33 g/t Ag; 10 g/t Au, 8 g/t Ag. Porphyry copper potential is highlighted on a report (no alteration is described).
  • Radius Gold Inc. provided an update on exploration at the Amalia project in Chihuahua. The 10,380 ha project has Au-Ag mineralization defined over 2 km of strike length in high level chalcedonic veins, stockworks and breccias and deeper level structurally controlled higher grade mineralization. “Radius continues to advance the Amalia project and is currently permitting drilling and bulldozer trenching.” Recent channel sampling returned 4.5 m @ 10.3 g/t Au, 202 g/t Ag, extending the total strike length of the high-level epithermal mineralization of the Campamento zone to 500 m.
  • Millrock Resources Inc. reported on first phase core drilling at its La Navidad project in Sonora, funded by earn-in partner Centerra Gold. In total, 2,130 m were drilled in 12 holes, with several anomalous intersections, like: 17.2 m @ 0.75 g/t Au (including 1 m @ 9.05 g/t Au); 15.65 m @ 0.60 g/t Au; 18.30 m @ 0.33 g/t Au; 18.0 m @ 0.12 g/t Au; 6.00 m @ 0.26 g/t Au; 5.90 m @ 0.45 g/t Au; 57.0 m @ 0.29 g/t Au; 16.6 m @ 0.35 g/t Au.
  • Azure Minerals Ltd. announced the start of the second drilling campaign on its Sara Alicia project in Sonora. “The Sara Alicia mineralised zone consists of carbonate rocks intruded by a porphyry. This intrusive event caused strong alteration and mineralising reactions in the limestones to form a skarn body which hosts massive and semi-massive sulphides containing the cobalt and gold mineralisation”. The first phase of this drilling campaign is to comprise 1,000 m in 10-12 holes, targeting along-strike and down-dip extensions. The second phase is planned to complete a 50 x 50 m drill pattern over the mineralized body.

ON MINING

  • Americas Silver Corp. reported 4Q and year-end financial results for 2017, including some figures from its operations in Mexico. The San Rafael mine in Sinaloa declared commercial production on December 19, 2017, and was constructed for $16.3 M, 32% lower than the initial project guidance. For 2018 the company plans to produce 1.6 to 2.0 M Oz Ag and 7.2 to 8.0 M Oz AgEq. Cash balance at the end of December was $9.3 M, with net working capital of $11.8 M.
  • Santacruz Silver Mining Ltd. reported operating results for the fourth quarter and full year 2017. Santacruz produced 865.4 K Oz AgEq during the year, including 139.7 K Oz AgEq during the fourth quarter. At Veta Grande in Zacatecas 102.1 K tonnes were milled @ 100 g/t Ag (127 g/t AgEq) and Ag recovery of 61% to produce 201.3 K Oz Ag, 424 Oz Au, 466 tonnes Pb, 803 tonnes Zn during the year. At Rosario in San Luis Potosi, 78.9 K tonnes were milled @ 52 g/t Ag (205 g/t AgEq) and a recovery of 85% Ag to produce 112.6 K Oz Ag, 1,007 Oz Au, 157 tonnes Pb, 1,489 tonnes Zn during the same period.
  • Magellan Gold Corp. announced it has rehired employees and is restarting its 100% owned SDA mill in Nayarit. Operations are initially to reprocess tailing located at the site, with recovery of precious metals expected to defray holding costs of the mill while new ore sources are acquired. The mill last operated in November 2017 and processed third-party ore on a toll basis.

ON FINANCING

  • Canuc Resources Corp. closed a non-brokered private placement financing with gross proceeds of $1.1 M (San Javier, Sonora).
  • Colibri Resource Corp. has closed an over-subscribed first tranche on its previously announced $1 M financing, raising gross proceeds of $1.077 M. Total gross proceeds to be raised between the two tranches is expected to be $1.2 M (Pilar, Sonora).
  • Vangold Mining Corp. announced a non-brokered private placement financing to raise up to $2 M, and fund the phase 2 drill program targeting the lower El Pinguico vein extension, and general working capital.
  • Santacruz Silver Mining Ltd. has arranged a loan from a private Bolivian mining company, for US$2.3 M. The loan bears interest at 9% per annum, is repayable July 1st, 2018, and is unsecured (Veta Grande, Zacatecas; Rosario, San Luis Potosi).
  • Starcore International Mines Ltd. announced the closing of its non-brokered private placement to an insider, for gross proceeds of $125 K (San Martin, Queretaro).

ON RESOURCES AND DEVELOPMENT

  • Levon Resources Ltd. announced an updated NI-43-101 mineral resource estimate and a 2018 preliminary economic assessment (PEA) for the Cordero project in Chihuahua. The new estimate includes 990 M tonnes of ore @ 12.8 g/t Ag, 0.37% Zn, 0.17% Pb, 0.04 g/t Au as indicated resources and 282.2 M tonnes @ 20.7 g/t Ag, 0.75% Zn, 0.30% Pb, 0.04 g/t Au as inferred resources. The said resource contains 595 M Oz Ag, 1.63 M Oz Au, 12.7 B Lb Zn, 5.6 B Lb Pb in the indicated and inferred categories. The PEA includes an open pit mining rate of 40 K tpd (tonnes per day) to produce mineral concentrate, an annual production of 8 M Oz Ag, 44.8 K tonnes Zn, 31.1 K tonnes Pb, 11,900 Oz Au. Over the 29 year mine life on the PEA, 231 M Oz Ag, 2,863 M Lb Zn, 1,992 M Lb Pb would be produced.” Metallurgy is simple (side by side lead and zinc conventional flotation mills) with 88% overall recoveries after three rounds of bench-scale testing”.
  • Alio Gold Inc. provided an update on exploration of its Ana Paula project in Guerrero. To date 1,300 m of the planned 3,800 m of surface drilling have been completed (two of six diamond drill holes), intersecting breccia mineralization as expected and awaiting assay results. Two new breccia targets were discovered by mapping within 1.5 km of the limit of the proposed pit, showing magmatic and hydrothermal breccia mineralization with traces of pyrite and arsenopyrite.
  • Leagold Mining Corp. has filed a NI-43-101 technical report for the Los Filos mine in Guerrero. For Los Filos and Bermejal Underground deposits, measured and indicated resources amount to 13.53 M Oz Au, while inferred resources stand at 6.28 M Oz Au (Almost 20 million ounces of gold!).  Los Filos Resources1Los Filos Resources1 - copia

ON DEALS AND CORPORATE ISSUES

  • Sonoro Metals Corp. has executed on the letter of intent (LOI) of an option agreement on the Rosario group of properties in Sonora. The Rosario concessions are adjacent to Sonoro’s Cerro Caliche property, covering 403.5 hectares, thereby increasing Sonoro’s land holdings in the area to 1,455 hectares. Sonoro is to acquire 100% interest on the property by paying the vendor (a Tucson resident) US$1.6 M payable in escalating cash installments over 72 months, with the initial installment of US$60 K payable on execution. The vendor is to retain 2% NSR, same that can be bought by Sonoro by US1 M for each one percent.
  • Compañía Minera Autlán SAB de CV. is to acquire all the shares of Metallorum Holding, which owns the Lluvia de Oro mine in Sonora. The company is to invest US$25 M in the next three years to increase its manganese and ferroalloys production capacity.

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 below, beautiful quartz vein with bladed calcite pseudomorphs at the museum of El Oro mining district in Estado de Mexico.

041 - copia

Highlights on the Third Week of October, 2017. Mineral Exploration in Mexico

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During the 42nd week of the year (October 16th to October 22nd, 2017), at least 29 press releases were announced by companies working in Mexico, including eight quarterly reports. ON MEXICO ISSUES: No relevant news. ON EXPLORATION: Nine companies disclosed exploration efforts during the week: In Sonora, Alix Resources is doing metallurgical studies at its Agua Fria project; Teck is drilling the Alacrán project;  Oceanus discovered several veins at its El Tigre property; Riverside presented an exploration update on its Tajitos and Cecilia projects; SilverCrest released drill results from the Babicanora vein on its Las Chispas property; VVC Exploration boasted on the size of the mineralized system at Cumeral; Azure Minerals started drilling its Oposura project. In Chihuahua, Harvest Gold presented results on a soil program completed on its Cerro Cascaron project. In Sinaloa, VVC Exploration describes two mineralized structures at its La Tuna property. In Veracruz, Mexican Gold completed a geophysical survey that highlighted several targets at its Las Minas project. ON MINING: Avino Silver, Premier Gold, Sierra Metals, Gold Resource, Excellon, Fortuna Silver, First Majestic and McEwen Mining reported preliminary third quarter results. Corex Gold shipped the first gold concentrate from its Santana property in Sonora.  ON FINANCING: Excellon is to raise up to $11.5 M on a bought deal basis; Goldcorp exercised C$3.5 M on Alio Gold warrants; Alio gold exercised a buy-back clause to acquire 1% of NSR from Goldcorp; Silver One raised C$4.3 M. ON RESOURCES AND DEVELOPMENT: Leagold updated the resource estimate at the Bermejal Underground deposit on its Los Filos property  in Guerrero; Mexican Gold presented drill results from its Las Minas property in Veracruz; Torex Gold commenced an in-fill drill program at its Media Luna project in Guerrero; Monarca Mining is reviewing the geological information and drill holes from its Tejamen property in Durango; Riverside is re-logging core from the Jesus Maria zone of its Peñoles project in Durango; Southern Silver presented an update on the exploration and resource definition at its Cerro Las Minitas project in Durango; VVC Exploration is looking into bringing the Samalayuca copper property in Chihuahua to production; Bacanora Minerals received the environmental permit for plant construction on its Sonora lithium project. ON DEALS AND CORPORATE ISSUES: Alix Resources informed that Lithium Australia NL holds now 54% of the Elektra project in Sonora. Goldcorp announced the completion of the sale of its 21% stake on San Nicolas (Zacatecas) to Teck.

ON MEXICO ISSUES

  • No Relevant News.

ON EXPLORATION

  • Alix Resources Corp. completed recently a 2,500 m reverse circulation drill program at its Agua Fria project in Sonora. The program comprised 16 holes, returning 33 m @ 1,058 ppm Li; 48 m @ 1,031 ppm Li; 24 m @ 1,050 ppm Li. “A large sample is currently being composited for further metallurgical studies.   “In addition to significant Li values, the clay horizons at Agua Fria are anomalous in potassium which may be recoverable as potassium sulphate…”
  • Azure Minerals Ltd. informed that project operator Teck has commenced drilling on the Alacrán project in Sonora. During 2017 Teck has performed geological mapping, surface sampling and an induced polarization survey, identifying two high priority targets. The first target is the extension of the Loma Bonita Ag-Au deposit towards Cerro San Simon, with potential for epithermal mineralization. The second target is Cerro Colorado where strong chargeability and resistivity anomalies were identified under soil anomalies, pointing to a porphyry copper target. Three diamond rigs are to drill 5,000 m.
  • Mexican gold Corp. completed 50 km of ground magnetic survey and 15 line km of “Moving Loop Time Domain Electromagnetic” (TDEM) on the El Dorado/Juan Bran, Cinco Señores and Las Minillas mineralized zones at its Las Minas property in Veracruz. The TDEM method was validated over known parts of the mineralized system, with multiple new targets emerging on the three zones.
  • Oceanus Resources Corp. has discovered several new veins located approximately 150 m north and parallel to the Caleigh vein on its El Tigre project in Sonora. A drill rig is to arrive on the last week of October.
  • Riverside Resources Inc. presented an update on its Cecilia, Tajitos and La Silla projects. At Cecilia in Sonora, the environmental permit has been received to drill test the upper portion of a dome-related epithermal system, with sampling returning 21% of 394 chip-channel samples greater than 0.3 g/t Au. At Tajitos, also in Sonora, a number of new targets have been identified after reviewing in detail the past exploration and drilling campaign. At La Silla in Sinaloa, Riverside continues to consolidate a strong land package and outlining multiple veins, with soil surveying, mapping, sampling, structural analysis, remote sensing and prospecting.
  • Harvest Gold Corp. and Evrim Resources Corp. covered an area of 4.5 km by 1.6 km with a soil sampling program at its Cerro Cascaron project in Chihuahua. The soil survey included 877 Samples collected every 50 m on lines separated 200 m apart, oriented east-west. “Results have extended known veins, identified two new corridors and have highlighted a 1.4 kilometre-long, very strong gold-silver trend to the north of the ……. Serpiente Dorada vein”. The Carabina, San Pedro, and La Puerta areas show a “significant soil response in gold, silver and pathfinders along strike from known gold-silver mineralization and two additional areas between San Pedro and La Puerta, have significant pathfinder element responses”.
  • VVC Exploration Corp. describes its Cumeral project in Sonora as boasting a gold mineralization zone that runs at least for 3.6 km. At La Tuna in Sinaloa, two mineralized structures are favorable for an open-pit gold/copper resource. A signed letter of intent (LOI) with a mining company is at the due diligence stage.
  • SilverCrest Metals Inc. released further results from the Phase II drill campaign at its Las Chispas property in Sonora. The Babicanora vein has been drill tested for over 600 m of strike length, with a near-surface mineralized height of 150 to 175 m. High-grade intercepts occur also on the Granaditas and Amatista veins on the Babicanora area. Results include 2.9 m (true width, or TW) @ 5.6 g/t Au, 173 g/t Ag; 3.0 m @ 4.3 g/t Au, 130 g/t Ag; 2.0 m @ 3.0 g/t Au, 78 g/t Ag; 4.0 m @ nil Au, 397 g/t Ag; 4.1 m @ 3.5 g/t Au, 137 g/t Ag; 1.7 m @ 3.6 g/t Au, 190 g/t Ag. The average of the high-grade zone in 20 holes of the Babicanora vein is 3.6 m @ 2.73 g/t Au, 263 g/t Ag. Approximately 5,000 m of drilling is planned for the remaining part of 2017.
  • Azure Minerals Ltd. is drilling with two core rigs its Zn-Pb-Ag Oposura project in Sonora. The 120 hole program is to total 7,000 m, aiming to produce a mineral resource estimate by the end of March 2018.

ON MINING

  • Avino Silver and Gold Mines Ltd. reported third quarter 2017 production results from its Avino property in Durango. At the Avino mine 119.3 K tonnes were mined, with 117.9 K tonnes milled @ 66 g/t Ag, 0.7 g/t Au, 0.48% Cu; recoveries stood at 85% Ag, 70% Au, 88% Cu to produce 213.8 K Oz Ag, 1,847 Oz Au, 1.1 M Lb Cu (501.8 ton). At the San Gonzalo vein 18.4 K tonnes were mined, 20.3 K tonnes milled @ 281 g/t Ag, 1.55 g/t Au; with recoveries of 85% Ag, 82% Au, producing 155.2 K Oz Ag, 826 Oz Au.
  • Premier Gold Mines Ltd. announced preliminary third quarter results, including figures from its Mercedes mine in Sonora, where 18,564 Oz Au, 82,856 Oz Ag were produced.
  • Gold Resource Corp. disclosed preliminary production results for the third quarter 2017 on its El Aguila property in Oaxaca. The company produced 6,465 Oz Au, 392.1 K Oz Ag, 291 tonnes Cu, 1,449 tonnes Pb, 4,628 tonnes Zn.
  • Sierra Metals Inc. reported third quarter 2017 production results, including figures from its Cusi and Bolivar mines in Chihuahua. At Bolivar 223.3 K tons were processed @ 0.92% Cu, 14 g/t Ag, 0.14 g/t Au, achieving recoveries of 77.9% Cu, 74.5% Ag, 61.6% Au, to produce 3.52 M Lb Cu, 76 K Oz Ag, 629 Oz Au. At Cusi, 13.2 K tonnes were processed @ 154 g/t Ag, 0.26 g/t Au, 1.0% Pb, 1.1% Zn, with recoveries of 84.1% Ag, 55.7% Au, 83.5% Pb, 50.9% Zn, to produce 55 K Oz Ag, 61 Oz Au, 247 K Lb Pb, 160 K Lb Zn.
  • Excellon Resources Inc. announced third quarter 2017 results from its Platosa mine in Durango, where 18.1 K tonnes were mined, and 19.9 K tonnes milled @ 409 g/t Ag, 4.4% Pb, 6.1% Zn. Recoveries stood at 87.6% Ag, 81.8% Pb, 81.1% Zn, to produce 226.2 K Oz Ag, 1.6 M Lb Pb, 2.2 M Lb Zn. “All-in sustaining cost decreased during the quarter to approximately $11-$13 per payable silver ounce…”.
  • Fortuna Silver Mines, Inc. released third quarter 2017 production results, including figures from its San Jose mine in Oaxaca. At San Jose 263.7 K tonnes were milled at a rate of 3,038 tonnes per day (tpd), and an average grade of 229 g/t Ag, 1.71 g/t Au, with recovery rates of 90.5% Ag, 91.4% Au, to produce 1.77 M Oz Ag, 13,248 Oz Au. Mine production was sourced from Trinidad Central and Trinidad North.
  • First Majestic Silver Corp. released production results for the third quarter 2017 from its six mines in Mexico: Santa Elena in Sonora, La Encantada in Coahuila, La Parrilla in Durango; Del Toro in Zacatecas, San Martin in Jalisco, and La Guitarra in Estado de Mexico. Total production from the six mines amounts almost four million silver equivalent ounces during the period.First Majestic Q3 2017 production11
  • Corex Gold Corp. shipped the first gold–in-carbon concentrate from its Santana heap-leach project in Sonora. Corex has been conducting continuous bulk testing heap-leach activities on coarser crushed material than in the next anticipated program to be performed on finer crushed material.

    McEwen Mining Inc. reported production results for the first quarter 2017, including figures from its operations at El Gallo in Sinaloa, where 7,213 AuEq ounces were produced. Production below expectations is the result of a serious mechanical failure that halted crushing for a period of time. Better grades and increased crushing rates in the rest of the year are expected to partially compensate for the shortfall.

    ON FINANCING

    • Excellon Resources Inc. entered into an agreement with a syndicate of underwriters to sell shares on a bought deal basis for gross proceeds of $10 M. If an over-allotment option is exercised in full, gross proceeds for the offering can reach $11.5 M. (Platosa, Durango).
    • Alio gold Inc. announced that Goldcorp Inc. exercised its warrants that expire on October 19, 2017 for total proceeds of C$3.5 M. Alio Gold also exercised a buy-back right from Goldcorp of a 1% NSR on its Ana Paula project in Guerrero, for US$2.9 M. After the buy-back, the NSR held by Goldcorp on Ana Paula is now 2%. (San Francisco, Sonora).
    • Silver One Resources Inc. closed an oversubscribed non-brokered private placement for gross proceeds of C$4.3 M (Peñasco Quemado, Sonora).

    ON RESOURCES AND DEVELOPMENT

    • Leagold Mining Corp. updated the Bermejal Underground mineral resource estimate at its Los Filos property in Guerrero. The updated resource includes 9.9 M tonnes @ 6.15 g/t Au, 22 g/t Ag in the measured and indicated category, and 4.7 M tonnes @ 5.36 g/t Au, 16 g/t Ag in the inferred bracket, containing 1.97 M Oz Au and 820 K Oz Au in each category respectively. The estimate includes data from form 505 drill holes totaling 195,261 m, with mineralization having been tested along 1,600 m along the strike of the intrusive contact, with a vertical depth extent of over 800 m. Drill hole spacing is roughly 35 m for indicated resources and less than 25 m for measured resources.
    • Mexican Gold Corp. reported mineralized intercepts from its ongoing resource expansion drilling at El Dorado/Juan Bran zone at its Las Minas property in Veracruz. One hole intersected a 21 m interval of chalcopyrite, bornite and magnetite, and a second interval of 56 m of stronger mineralization. Both intervals have wide zones outside the outline of the mineral resource. One other hole intersected two intervals of 3 m and 8 m with chalcopyrite, bornite and magnetite.
    • Torex Gold Resources Inc. has initiated the in-fill drilling program at its Media Luna development project in Guerrero. The program’s purpose is to upgrade to the Indicated confidence level, 25% of the current resource (7.4 M Oz AuEq). The US$15 M program contains 175 holes averaging 600 m in depth, for a total of 105,000 m of drilling.
    • Monarca Mining Inc. is currently re-analyzing geological information and the re-logging of historical drill results from its Tejamen property in Durango. Monarca has identified three high grade intercepts at the Los Mantos and Cerro Prieto portions of Tejamen, including an 80 m zone containing 417 g/t Ag. The feeder veins strike to the SW for approximately one km. Drilling reached only about 150 m of depth, and the core was not assayed for other metals.
    • Riverside Resources Inc. informed that re-logging of 15 holes of the Jesus Maria zone at its Peñoles project in Durango resulted in the interpretation that at least one and possibly multiple high-grade vein structures remain untested for hundreds of meters along strike and down dip.
    • Southern Silver Exploration Corp. presented an update on activities at its Cerro Las Minitas project in Durango. During 2017 13,600 m were drilled in 18 holes, identifying and extending the new Skarn Front zone beneath the Blind and El Sol deposits. Exploration has been funded by Electrum Global Holdings L.P., earning a 60% stake on the project by spending US$5.0 M. A total of 107 drill holes for 49,600 m have been completed on the project, with exploration expenditures reaching US$10 M.
    • VVC Exploration Corp. is looking to bring the Samalayuca copper project to production in 2018. A 2013 NI-43-101 resource estimate shows a resource of 4.1 M tonnes of ore. VVC plans to use low cost, low tech processing to produce copper cement that is directly usable in many industrial processes.
    • Bacanora Minerals Ltd. announced the environmental impact statement (Manifestacion de Impacto Ambiental, or MIA) on its Sonora project has been approved by SEMARNAT (Environmental agency). The MIA approved is for the production of 35,000 tonnes per year of lithium carbonate through a conventional beneficiation process followed by a standard SO4 roasting process.

    ON DEALS AND CORPORATE ISSUES

    • Alix Resources Corp. announced that Perth-based lithium processing technologist, Lithium Australia NL (LIT) is controlling now 54% of the Elektra lithium project in Sonora. LIT has the right to earn up to 65% interest on the project under the current JV agreement.
    • Goldcorp Inc. announced the completion of the sale of its 21% minority interest in the San Nicolas Cu-Zn project in Zacatecas, to Teck Resources Ltd., for a cash consideration of US$50 M.

    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 below, sheeted quartz veins cutting an intrusive rock on a prospect of the Durango Altiplano. Photo by Jorge Cirett.Pillar2

Highlights on the Fifth Week of August, 2017. Mineral Exploration in Mexico

/ Gambusino Prospector / Leave a comment

During the 35th week of the year (August 28th to September 3rd, 2017), at least 20 press releases were announced by companies working in Mexico, including three quarterly financial reports. ON MEXICO ISSUES, no relevant news. ON EXPLORATION, in Sonora, Alix released drilling results from its Electra property in Sonora. ON MINING, Maverix Metals and Santacruz Silver and Southern Silver reported second quarter 2017 financial results. Telson Resources initiated underground mining at Campo Morado in Guerrero. ON FINANCING, VVC Exploration, Colibri and Southern Silver announced the opening or closure of financing rounds for CA$1 M, $1.2 M and $468 K respectively. Marlin Gold withdrew $7 M from its loan facility with Wexford during July and August. Goldgroup Mining amended a credit line with Credipresto. ON RESOURCES AND DEVELOPMENT, VVC Resources initiated a drilling program in Samalayuca, Chihuahua. Sierra Metals released high-grade results from drilling at Cusi, in Chihuahua. Kootenay Silver released drilling results from La Cigarra, also in Chihuahua. Silver Bull is starting an underground drilling campaign at Sierra Mojada, Coahuila. Endeavour Silver released drilling results from Guanacevi, Durango. Mx Gold intends to begin processing of the Magistral del Oro tailings in Durango by the fourth quarter 2017. Geologix is working on the goal of expanding the resource at Tepal, Michoacan. ON DEALS AND CORPORATE ISSUES, VVC Exploration signed a LOI on the La Tuna property in Sinaloa.

ON MEXICO ISSUES

  • No Relevant News.

ON EXPLORATION

  • Alix Resources Corp. completed, in partnership with Lithium Australia, 1,762 m of RC drilling on 16 holes on its Electra project in the Agua Fria property in Sonora. The program resulted in the discovery of the West Flank zone, which is 25-50 m thick and extends for nearly 2.5 km. Results include 82 m @ 938 ppm Li; 75.0 m @ 966 ppm Li; 30.0 m @ 917 ppm Li; 33.0 m @ 991 ppm Li; 57.0 m @ 719 ppm Li; 45.0 m @ 816 ppm Li; 90.0 m @ 904 ppm Li.

ON MINING

  • Telson Resources Inc. has commenced underground mining operations at Campo Morado in Guerrero. Plans are to accumulate up to 80,000 tons to support the initial start-up of the flotation mill. “The initial processing is planned to commence at approximately 1000 tons per day and will slowly be ramped up to the mill’s ultimate capacity of 2,500 tonnes per day.”
  • Maverix Metals Inc. announced financial results for the second quarter 2017. The royalty and streaming company, which has a NSR from gold production from Pan American Silver’s La Colorada mine in Zacatecas, had a revenue of CA$4 M, with average cash cost per attributable AuEq ounce of CA$187. The company has a current cash balance of CA$32 M.
  • Santacruz Silver Mining Ltd. reported financial and operating results for the second quarter of 2017. The company owns the Veta Grande and Rosario projects in Zacatecas and San Luis Potosi, respectively; producing 270.7 K AgEq Oz at cash cost $21.24 per AgEq Oz and all-in sustaining cost (AISC) of $24.62 per AgEq Oz during the period. Santacruz disposed of its interests in the Gavilanes, San Felipe and El Gachi projects for proceeds of $19.14 M, settling debt to JMET and LLC for $7.36 M and making payments to the underlying vendors of the properties for $3.48 M. The company also entered into the Membrillo property agreement to augment mineralized feed to the Rosario mill.
  • Marlin Gold Mining Ltd. announced its financial results for the second quarter 2017. During the period the company produced 8,785 Oz Au at its La Trinidad mine in Sinaloa, selling 9,825 Oz Au. Currently the company has cash and finished gold account for $2.6 M, $1.7 M of finished gold and $14.2 M of gold-in-process. “Investments in shares of Golden Reign Resources Ltd. stood at $8.7 million at quarter end”.

ON FINANCING

  • VVC Exploration Corp. has opened a non-brokered private placement for up to CA$1 M (Samalayuca, Chihuahua).
  • Colibri Resource Corp. announced a non-brokered private placement intending to raise up $1.2 M (Pitaya and Pilar, Sonora).
  • Marlin Gold Mining Ltd. informed on its second quarter report that during July and August the company received US$2 M and US$5 M respectively from the Wexford loan facility, increasing the Wexford loan to US$37 M (La Trinidad, Sinaloa).
  • Goldgroup Mining Inc. announced the amendment of its outstanding loan facility from Credipresto SAPI de CV SOFOM ENR. Javier Reyes, a director of Goldgroup, is an executive officer and director at Credipresto. The aggregate outstanding balance (15% interest per annum) is now US$627 K, with the available credit set at US$1.5 M, of which US$1 M is intended to be drawn shortly. Three and a half million warrants (on Goldgroup shares) were issued to Credipresto (Cerro Prieto, Sonora).
  • Southern Silver Exploration Corp. closed the second tranche of its previously announced private placement, with gross proceeds of $468 K. The private placement was comprised of a brokered and non-brokered component. Gravitas Securities received a cash fee of $42.2 K and 105.6 K options. The proceeds are to be used on the continuing exploration of the Cerro Las Minitas property in Durango.

ON RESOURCES AND DEVELOPMENT

  • VVC Exploration Corp. started a diamond drilling program on its Samalayuca copper project in Chihuahua. The 3,000 m program is focusing on the area of the La Gloria open pit, mined by Gambusinos in the 1960’s. A recently completed magnetic survey is backing the location site for 15 inclined holes that are to be 100 to 300 m in length.
  • Sierra Metals Inc. presented results from the expanded 14,000 m drilling program on 22 holes completed at the Santa Rosa de Lima zone within its Cusi property in Chihuahua. Intercepts include >3.8 m @ 287 g/t Ag, 0.1% Pb, 0.1% Zn; >4.5 m @ 401 g/t Ag, 0.1% Pb, 0.2% Zn; >4.0 m @ 205 g/t Ag, 2.4% Pb, 3.1% Zn; >13.8 m @ 465 g/t Ag, 0.5% Pb, 0.3% Zn; >4.7 m @ 172 g/tAg, 5.3% Pb, 5.1% Zn. The average grade and true width of infill intercepts is 343 g/t AgEq over 3.63 m, with the step-out holes extending the known mineralization zone to 1.7 km along the 12 km long Santa Rosa de Lima structure.
  • Kootenay Silver Inc. disclosed results from the last drill hole to extend the recently discovered Las Venadas zone within its La Cigarra property in Chihuahua. The hole is 140 m northeast from the last hole, intercepting 7.0 m @ 169 g/t Ag; 12.0 m @ 121 g/t Ag; 24.2 m @ 93 g/t Ag. “The strength and intensity of brecciation, veining and alteration observed in hole CC-17-28 is consistent with discovery hole CC-17-26, which bottomed in veining. Textures are indicative of a variant of an epithermal hydrothermal breccia complex”.
  • Silver Bull Resources Inc. started a 2,000 m underground diamond drill program targeting the recently identified zone of high grade sulfide mineralization at its Sierra Mojada project in Coahuila. The program is to be carried out by the company owned Termite drill rig, capable of drilling up to 100 m of HQ size diamond core.
  • Endeavour Silver Corp. released drilling results extending high-grade mineralization along strike on the Santa Cruz vein and on a newly discovered splay named the La Negra vein, on its Guanaceví mine in Durango. Highlighted true width intercepts: 2.0 m @ 0.4 g/t Au, 259 g/t Ag (on La Negra vein); 2.9 m @ 0.5 g/t Au, 260 g/t Ag; 2.6 m @ 0.3 g/t Au, 334 g/t Ag; 1.9 m @ 0.5 g/t Au, 324 g/t Ag; 3.4 m @ 0.7 g/t Au, 786 g/t Ag; 1.3 m @ 0.4 g/t Au, 397 g/t Ag; 1.9 m @ 0.8 g/t Au, 357 g/t Ag; 1.2 m @ 1.7 g/t Au, 618 g/t Ag.
  • MX Gold Corp. announced in its JV with GracePoint Mining Corp. the project completion and production commencement by the fourth quarter of 2017 on its Magistral del Oro tailing s project in Durango. “…includes a fully permitted, 500 tonne-per-day dynamic cyanide countercurrent system plant constructed in 2013 and tailings containing a historic estimate of 1.25 million tonnes averaging 2.06 grams per tonne gold.”
  • Geologix Explorations Inc. is re-logging selected drill hole intersections on the South Pit of its Tepal property in Michoacan, trying to determine where the high grade structurally controlled ore lies. Rockchip samples are being collected for assay, and also for alteration and geophysical studies. The work is aimed to expand the economic resource base and make additional discoveries, enhancing the preliminary economic assessment (PEA).

ON DEALS AND CORPORATE ISSUES

  • VVC Exploration Corp. signed a letter of intent with Southern Fuels, Inc. to buy the La Tuna gold property in Sinaloa. To complete the acquisition, due diligence work is being carried out, and a formal purchase and sale agreement needs to be negotiated, with a first payment to be made during September 2017.

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 below, Cananea and the Buenavista del Cobre mine as seen from the North. Photo by Jorge Cirett.

 

Cananea Pano5

Highlights on the Second Week of August, 2017. Mineral Exploration in Mexico

/ Gambusino Prospector / Leave a comment

During the 32nd week of the year (August 7th to August 13th, 2017), at least 22 press releases were announced by companies working in Mexico, including eight second quarter reports. ON MEXICO ISSUES, two companies reported the receipt of VAT recovery from the government for $1.3 M and $2.4 M respectively. ON EXPLORATION, in Sonora, Oceanus reported results from underground sampling at El Tigre, while Millrock presented an update on properties under its alliance with Centerra. In Zacatecas, Alset presented drilling results from its lithium property, La Salada. In Guanajuato, Golden Minerals informed on drilling by Electrum of its Celaya property.  ON MINING, Golden Minerals, Torex Gold, Premier Gold, Alio Gold, Pan American Silver, Americas Silver, Primero Mining and Argonaut Gold presented production and/or financial results for the second quarter of 2017. US Antimony reported cost reductions on its operations and Telson resources reported the first concentrates shipment from Tahehueto in Durango. ON FINANCING, no relevant news for the first time in the year.  ON RESOURCES AND DEVELOPMENT, Golden Minerals informed on the acquisition of three more claims and the incoming drilling campaign on its Santa Maria project in Chihuahua. ON DEALS AND CORPORATE ISSUES, Santacruz Silver completed the sale of the Gavilanes project in Durango to Marlin Gold. Colibri completed the acquisition of Canadian Gold, along with its properties in Sonora. McEwen Mining reported on the next semi-annual return of capital instalment.

ON MEXICO ISSUES

  • On VAT recovery. The first company to announce a sizeable VAT recovery in years was Alio Gold, which received $1.3 M in cash before the end of the second quarter. Primero Mining received $2.4 M after the end of the second quarter.

ON EXPLORATION

  • Golden Minerals Co. announced that Electrum Global Holdings L.P. received results of drilling on Golden’s Celaya property in Guanajuato. Results from 5,600 m drilled in seven holes (800 m per hole?) show intercepts of epithermal quartz vein mineralization with Au, Ag, Zn grades that warrant further testing.
  • Alset Minerals Corp. reported partial results from phase one drilling at La Salada salar in Zacatecas, the first of 13 salars to be tested. At La Salada, one deep hole (51.35 m) and 40 auger holes (4.5 – 26.0 m in depth, average 14 m) were completed, both near surface brine samples and extensive lake sediment samples were recovered in the 1,800 m by 900 m salar. Results from five of the holes (the rest are pending) average 14.4 m @ 3.6% K, 975 ppm Li (up to,1860 pm) and 535 ppm B. Water samples average 1.3% K, 1.6% SO4, 258 ppm B, 9 ppm Li, 57 ppm Ca, 36 ppm Mg.
  • Oceanus Resources Corp. presented assay results from sampling at old underground exploration tunnels from the unmined Protectora, Aguilas, Fundadora and Caleigh veins on its El Tigre project in Sonora. The rock chip samples are said to be at least 0.5 m in width (no average width disclosed), and collected every 3-5 m along strike in 13 exploration tunnels. Average results include 3 samples on the Caleigh vein @ 19.9 g/t Au, 2,247 g/t Ag; On the Protectora vein: 20 samples @ 0.2 g/t Au, 437 g/t Ag; 18 samples @ 1.3 g/t Au, 290 g/t Ag; 4 samples @ 2.8 g/t Au, 337 g/t Ag; 16 samples @ 2.2 g/t Au, 473 g/t Ag; 5 samples @ 2.8 g/t Au, 680 g/t Ag; 19 samples @ 0.6 g/t Au, 480 g/t Ag. On the Fundadora vein: 5 samples @ 6.1 g/t Au, 307 g/t Ag; 12 samples @ 1.2 g/t Au, 254 g/t Ag.
  • Millrock Resources Inc. presented an update in exploration, including information on its three properties in Sonora. The La Navidad project was optioned on June, and immediately entered into a JV with Centerra Gold Inc. Presently underway are soil sampling, geological mapping, induced polarization and magnetic surveys. Also in June El Picacho project was optioned and made a “designated project” on the alliance between Centerra and Millrock. Soil sampling, geological mapping, induced polarization and mag surveys are currently being performed. Los Chinos and Los Cuarenta projects options were terminated by Centerra.

ON MINING

  • United States Antimony Corp. reported major cost reductions at its Mexican antimony smelter, as a result of metallurgical changes while increasing production rates. Production at Wadley, San Luis Potosi, is growing with more miners. USAC intends to use its Los Juarez explosives license at Soyatal, Queretaro, which will save money and time. Guadalupe is undergoing road work to re-establish the production of high-grade concentrates. The application for the cyanide permit for the Los Juarez project was resubmitted to SEMARNAT (EPA equivalent) at the end of July, after one item change requested by the agency.
  • Telson Resources Inc. announced that the first shipment of lead and zinc concentrates processed at the Atocha mill has been delivered to Mercuria Commodities Trading, S.A. de C.V.. As of August 1, 2017, the Company has processed approximately 1600 tonnes of ore through the Atocha toll mill producing approximately 66.1 dry tonnes of lead concentrate and 94.5 dry tonnes of zinc concentrate which have been delivered to Mercuria.
  • Golden Minerals Co. presented financial results for Q2 2017. Approximately $1.7 M revenue was received from the oxide plant lease to Hecla, and costs of $0.5 M to the services provided under the lease, for a net operating margin of $1.1 M. The company spent $0.5 M in exploration related primarily to work at the Santa Maria (Chihuahua), Rodeo (Durango) and other properties, as well as holding costs. Cash and cash equivalents balance of $2.7 M at the end of the period.
  • Torex Gold Resources Inc. reported financial and operational results. At El Limón Guajes mine in Guerrero 74,487 Oz Au were produced, as ramp-up continues, with design throughput achieved in June. Plant throughput was 1.2 M tonnes, or 13,063 tonnes per day (tpd), while mine production was 8.4 M tonnes, or 92,044 tpd. The gold recovery rate was 86% on a 2.37 g/t Au average grade, at cash cost $709 per Oz Au and AISC $991. Cash balance of $77.2 M including restricted cash of $15.7 M at the end of the period.
  • Premier Gold Mines Ltd. announced its operational and financial results for the second quarter of 2017. At Mercedes in Sonora 177.9 K tones were milled (1,954 tpd) @ 4.03 g/t Au, 36 g/t Ag; with recoveries at 94.9% Au, 43% Ag, to produce 21,893 Oz Au, 89.5 K Oz Ag. By-product cash cost per Oz Au was CAD$550 and by-product AISC per Oz Au of CAD$688. Quarter end cash balance of $156.8 M (US$120.9 M).
  • Alio Gold Inc. reported second quarter 2017 results. Production at the San Francisco gold mine was 22,011 ounces during the period, at AISC $954 per Oz Au. The San Francisco mine revitalization plan was initiated and the definitive feasibility study (DFS) after the positive pre-feasibility study (PFS) was released and a CAD$50.4 M bought deal financing was completed. The pre-stripping campaign envisions moving 22 M tonnes of waste from the Main and La Chicharra pits over the next 20 months. Cash and cash equivalents at the end of the period were $35.9 M.
  • Pan American Silver Corp. announced Q2 2017 results, including figures from its operations in Mexico. At Dolores in Chihuahua the construction of the agglomeration plant was completed and development for underground mining advanced, with initial stope ore mining expected to initiate before the end of 2017. At La Colorada mine in Zacatecas production achieved 1,800 tpd rates during the last month of the quarter. At La Colorada 1.73 M Oz Ag, 0.94 K Oz Au were produced at cash cost $3.38 per Ag Oz. At Dolores 1.04 M Oz Ag, 22.44 K Oz Au were produced at cash cost $0.12 and at Alamo Dorado in Sonora 0.26 M Oz Ag, 0.69 K Oz Au were produced at cash cost $11.18. Cash and short-term investments of $198.2 M at the end of the period.
  • Americas Silver Corp. disclosed consolidated financial and operational results for the second quarter of 2017. The figures of its operations in Mexico were informed in a previous release. San Rafael in Sinaloa remains on budget and on time to start production by the end of Q3, 2017. Cash balance at the end of the period was $12.8 M.
  • Primero Mining Corp. reported operating and financial results for the second quarter, 2017, including figures form its Mexican operations. At San Dimas 11,903 Oz Au, 0.97 Oz Ag were produced at cash cost $1,144 per AuEq Oz, and AISC $1,650 per AuEq Oz, with operations being impacted by bad relations with unionized employees. “…the Company believes that labour disruptions may continue to adversely affect the Company’s ability to profitably operate the San Dimas…” and “Primero highlights the significant liquidity risk imposed by the pending RFC maturity date of November 23, 2017, and notes that it may not be able to fully repay its debt obligations…”. Cash stood at $12.1 M and $10.0 M available under its existing revolving credit facility (RFC) at the end of the period, with a $33.5 in VAT and $22.8 M income taxes receivable outstanding.
  • Argonaut Gold Inc. announced its financial and operating results for the second quarter of 2017. The consolidated production was 29,730 AuEq Oz at cash cost $785 and AISC $906 per AuEq ounce. At El Castillo in Durango 2.0 M tonnes of ore @ 0.39 g/t Au and 2.65 M tonnes of waste were moved (51 K tpd) to produce 16,927 Oz Au at cash cost $893 per ounce. At La Colorada in Sonora 1.22 M tonnes of ore @ 0.64 g/t Au and 4.77 M tonnes of waste were moved (66 K tpd) to produce 12,098 Oz Au and 38.2 K Oz Ag at cash cost $590 per AuEq ounce. At San Agustin (10 km from El Castillo) mining commenced during the quarter, leach pad and pond construction was completed and the crushers installed, with ore beginning to be staked on the pad in late June. Construction was 75% complete by the end of July. Cash and cash equivalents stood at $53.8 M at the end of the quarter.

ON FINANCING

  • No relevant news.

ON RESOURCES AND DEVELOPMENT

  • Golden Minerals Co. entered into an agreement to acquire three additional claims at the Santa Maria project in Chihuahua for $0.7 M over four years, with an initial payment of $50 K and $30 K in six months. The targets in these claims are to be tested in an upcoming 2,000 m drill program in the third quarter of 2017, while the environmental study to obtain the permit to perform the 200 tpd underground mining envisaged on the preliminary economic assessment (PEA) has been completed.

ON DEALS AND CORPORATE ISSUES

  • Santacruz Silver Mining Ltd. entered into a definitive agreement to sell 100% interest in the Gavilanes property in Durango to Marlin Gold Mining Ltd. Santacruz is to settle the outstanding balance on some of the claims by making a $500 k payment and issuing 1.25 M Santacruz shares to the property vendor. Gavilanes is a low sulphidation epithermal deposit in the San Dimas mining district with NI-43-101 compliant 6.1 M AgEq indicated ounces (953 K tonnes @ 200 g/t AgEq), and 28.2 M AgEq inferred ounces (5.4 M tonnes @ 163 g/t AgEq).
  • Santacruz Silver Mining Ltd. settled the outstanding balance owing on certain of the claims included in the Gavilanes project (in Sinaloa) by making a cash payment of US$500 K and 1.25 M Santacruz shares.
  • Colibri Resource Corp. completed the acquisition of Canadian Gold Resources Ltd. Colibri acquired all outstanding shares of Canadian Gold for $4 M, paid by way of issuance of 24.2 M shares to the vendor. Colibri now owns 100% interest in Minera Bestep S.A. de C.V., a private Mexican company that holds 100% (no NSR’s) of the Pilar and the Sun properties near Suaqui, in Sonora.
  • McEwen Mining Inc. reported a revised record date for the next semi-annual return of capital instalment of a ½ cent per share which will be distributed to shareholders of record on August 14, 2017. The distribution will be paid on August 17, 2017.

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 below, vuggy silica fragment within a felsic tuff in Chihuahua. Photo by Jorge Cirett.

Vuggy quartz at Moreno

Highlights on the First Week of May, 2017. Mineral Exploration in Mexico

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During the 18th week of the year (May 1st to May 7th, 2017), at least 29 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, no relevant news this week. ON EXPLORATION, In Sonora Alix released metallurgical tests results from its Elektra lithium property, San Marco is preparing to drill Chunibas, while confirming the presence of a porphyry copper system at project 1068, and Aztec informed that is likely to drill its Cervantes property on the same State. In Zacatecas Canasil disclosed high grade drill results from La Esperanza, Galore commenced a drill program at Dos Santos and Zenith disclosed advance on its lithium properties. ON MINING, Ten companies presented first quarter 2017 financial results: Marlin Gold, Santacruz Silver, Primero Mining, Gold Resource, Torex Gold, Endeavour Silver, McEwen Mining, Alamos Gold, Great Panther and First Majestic. ON FINANCING, Three companies, Evrim Resources, Aztec Minerals and Almaden Minerals presented information on financing rounds for $4.2 M, C$4.02 M and $15 M respectively. ON RESOURCES AND DEVELOPMENT, Consolidated Zinc presented an activities report on its Plomosas property in Chihuahua, and Alamos Gold released information on exploration on the Mulatos district in Sonora, with a hefty budget. ON DEALS AND CORPORATE ISSUES, Fortuna Silver presented an update on its MTCO and disclosed it is soon to comply with the regulatory agencies requested paperwork. Southern Silver entered into an agreement with La Cuesta to buy two properties adjacent to its Cerro Las Minas property in Durango.

ON MEXICO ISSUES

  • No relevant news this week

ON EXPLORATION

  • Alix Resources Corp. announced preliminary metallurgical tests released by its JV partner Lithium Australia ML, from the Agua Fria prospect, part of its Elektra project in Sonora. Preliminary sulphuric acid shaker tests were carried out at room temperature for a period of four hours, with Lithium extraction attaining up to 85%.
  • Zenith Minerals Ltd. is exploring its three lithium properties in Zacatecas, funded by partner Bradda Head Ltd. Surface sampling has been completed, with results pending, on the Zacatecas Li brine properties.
  • San Marco Resources Inc. informed that field work on its 1068 project has confirmed and expanded the size potential of a porphyry copper system. The work that included geological and alteration mapping, stream sediment and rock chip sampling, and petrographic samples increased the phyllic alteration zone to 1,000 x 450 m, with an internal zone of strong phyllic stockwork in the volcanic rock lithocap. The drilling application is in process and surface rights access have been secured over the main targets.
  • Canasil Resources Inc. disclosed assay results for three drill holes at its La Esperanza project in Zacatecas. True width (TW) intercepts include 1,87 m @ 231 g/t Ag, 1.2% Zn, 1.4% Pb; 11.23 m @ 0.74 g/t Au, 219 g/t Ag, 0.9% Zn, 0.4% Pb; 2.07 m @ 261 g/t Ag, 2.1% Zn, 0.9% Pb; 2.75 m @ 2.76 g/t Au, 552 g/t Ag, 1.1% Zn, 0.6% Pb; 1.51 m @ 0.39 g/t Au, 256 g/t Ag, 1.7% Zn, 0.7% Pb. The vein system is open in all directions, and the mineralization intercepted is interpreted as part of the upper part of the system.
  • Aztec Minerals Corp. expects to drill test the California target of its Cervantes property in Sonora, after the rainy season late this summer.
  • San Marco Resources Inc. is preparing to drill its Chunibas project in Sonora. The Chunibas targets are a series of high-grade gold bearing veins hosted in intrusive rocks. There are five main vein zones: Santa Rosa, Argentina, Santa Fe, Guasima, and Western, which comprise a corridor 750 m wide and 1.5 km long. Grades of up to 46 g/t Au have been obtained from the one to two metre-wide structures.
  • Galore Resources Inc. commenced a 3,500 m diamond drill program at its Dos Santos property in Zacatecas. The first drill hole began testing the main fault/vein system prevalent on Galore’s San Jose claim.

ON MINING

  • Marlin Gold Mining Ltd. presented financial results for 2016, which include total assets for C$102.2 M, and total liabilities of C$73.3 M for a total of 28.83 M Equity.
  • Santacruz Silver Mining Ltd. reported financial and operating results for 2016. During the year Santacruz restructured its silver loan agreement with JMET LLC and divested from the San Felipe and El Gachi projects in Sonora, in order to reduce debt obligations. The company processed 42,746 tonnes of ore to produce 200.1 K Oz AgEq, at cash cost $23.97 per AgEq Oz, and AISC $26.15 per AgEq Oz. The company continues with its operations at Veta Grande, Zacatecas, working on the Guadalupana, Garcia and the Choros mines, while the Rosario mill in San Luis Potosi is processing ore from the Cinco Estrellas mine.
  • Primero Mining Corp. reported first quarter 2017 results, including figures from its San Dimas property in Durango. The San Dimas mine was subject to an unionized strike that left only 45 working days on the quarter, but the new work agreement sets better terms for more competitive operations. Total production was 10,118 Oz Au, 0.62 M Oz Ag, at cash cost $827 and AISC of $1,335. The mine expects to produce between 90 K and 100 K Oz AuEq during 2017. At March 31, 2017, the company had $30.6 M in cash and $15 M available under its line of credit.
  • Gold Resource Corp. presented Q1 2017 results. At its El Aguila operations in Oaxaca 101.3 K tonnes were milled at a rate of 1,206 tpd, and an average grade of 2.42 g/t Au, 143 g/t Ag, 0.28% Cu, 1.16 % Pb, 3.07% Zn. Recoveries were 86% Au; 92% Ag, 78% Cu, 76% Pb, 85% Zn, to achieve the production of 6,747 Oz Au, 427.9 K Oz Ag, 220 tonnes Cu, 927 tonnes Pb, 2,149 tonnes Zn. Total cash cost was $980 per Au-AgEq Oz before by-product credits, $263 Au-AgEq Oz after by-product credits and all-in sustaining cost of $920 per “precious metal gold equivalent ounce sold” (??).
  • Torex Gold Resources Inc. disclosed production and financial results for Q1 2017. 941 K tonnes were processed @ 2.49 g/t Au, and a recovery rate of 85% to produce 70,887 Oz Au at $671 cash cost and AISC $923 per Au Oz. During the period a maiden underground resource was announced, containing 324 K inferred and 89 K indicated Au Oz. The cash balance at the end of March was $108.5 M (of which $14.6 M is restricted).
  • Endeavour Silver released Q1 2017 financial results, with the production of 1.08 M Oz Ag, 11,724 Oz Au at cash cost $7.81 per Ag Oz and all-in sustaining cost of $18.24 per Ag Oz net of gold credits. During the period high grade results were disclosed for Terronera, in Jalisco, the decision to develop the El Cubo mine in Guanajuato was taken and announced a robust PFS on the Terronera project. Cash and cash equivalents stand at $70.5 M at the end of the period (Guanacevi, Durango; El Cubo and Bolañitos, Guanajuato).
  • McEwen Mining Inc. reported financial results for Q1 2017, including figures from its El Gallo property in Sinaloa, where 9,730 Oz Au, 722.8 K Oz Ag were produced at cash cost $564 per AuEq Oz and AISC $668 per AuEq Oz co-product. At the end of the period cash and cash equivalents stood at $55.1 M.
  • Alamos Gold Inc. presented its financial and operational results for the first quarter of 2017, including figures from its Mexican operations. At Mulatos and El Chanate in Sonora 40 K and 15.8 K Oz Au were produced at cash cost $920 and $1,144 per Au Oz, and all-in sustaining cost $920, $1,187 per Au Oz respectively. At Mulatos 1.8 M tonnes of ore were mined in the open pit, 1.89 M tonnes of waste were moved (Waste to ore ratio 1.04), 1.69 M tonnes were crushed and stacked @ 0.86 g/t Au, while 35.7 K tonnes @ 8.88 g/t Au were mined from underground operations and milled. The recovery rate stood at 70%. At El Chanate 906 K tonnes of ore were mined, 7.56 M tonnes of waste moved (Waste to ore ratio 7.34), 747.9 K tonnes @ 0.53 g/t Au were crushed and staked on the heaps. The waste to ore ratio is higher than usual due to a scheduled pit pushback that will extend into the second quarter. Cash and cash equivalents stand at $479.2 M at the end of the period.
  • Great Panther Silver Ltd. reported first quarter 2017 financial results. From its operations at Topia, Durango, and San Ignacio and the Guanajuato mine complex in Guanajuato, 82.6 K tonnes were milled, producing 366.4 K Oz Ag, 5,178 Oz Au at cash cost $10.99 per AgEq Oz, and AISC $19.10 per AgEq Oz. At Topia, the company is struggling to comply with one of the SEMERANT (environmental agency) requirements, with the continuity of operations at risk. Cash and short-term deposits stand at $53.2 M at the end of the period.
  • First Majestic Silver Corp. announced Q1 2017 financial results. During the period 822.3 K tonnes were milled, to produce 2.7 M Oz Ag, or 4.27 M Oz AgEq at cash cost $6.68 and all-in sustaining cost $12.21. At the end of such period cash and cash equivalents stood at $127.6 M.First Majestic Q1 2017 operating cost1

ON FINANCING

  • Evrim Resources Corp. has further increased its private placement to raise gross proceeds of $4.2 M (Ermitaño, Sonora, Cerro Cascaron, Chihuahua).
  • Aztec Minerals Corp. completed its IPO, for total gross proceeds of C$4.02 M (Cervantes, Sonora).
  • Almaden Minerals Ltd. entered into an agreement to raise, in a private placement basis, up to $15 M (Ixtaca, Puebla).

ON RESOURCES AND DEVELOPMENT

  • Consolidated Zinc Ltd. presented a quarterly update on activities at its Plomosas property in Chihuahua. A scoping study is in progress, which includes the assessment on the possibility to re-start the mine, targeting a 200-400 tonnes per day (tpd) operation. Exploration efforts have shown new areas of mineralization, as the underground Tres Amigos South, and Carola South areas, with 40 samples averaging 20% combined Pb-Zn, and surface exploration includes the drilling of the Tres Amigos North zone.
  • Alamos Gold Inc. presented exploration and development activities for the first quarter 2017, including information from its Mexican properties. In Sonora, development continues at La Yaqui, where $5.3 M were spent during the period and further $7.0 are to be spent to complete construction of the mine that is expected to produce 25 K Oz Au per year. At La Yaqui Grande also 9,227 m of drilling in 46 holes were collared, with many results still pending. The exploration budget for the Mulatos district is of $17 M, now focusing beyond La Yaqui and Cerro Pelon, as new targets emerge, including Los Bajios, La Yaqui Norte, El Refugio, El Halcon and El Carricito.

ON DEALS AND CORPORATE ISSUES

  • Fortuna Silver Mines Inc. provided an update on the ongoing regulatory review of the Company’s 2015 annual filings by the United States Securities and Exchange Commission (SEC), and the management cease trade order (MCTO) it is subject to. Fortuna reported that the “SEC has verbally communicated it will accept the Company’s use of inferred resources for the calculation of depletion expense, provided that the Company includes additional disclosure regarding these calculations”. It anticipates it will file the needed documents in the coming weeks, not later than May 30, 2017.
  • Southern Silver Exploration Corp. acquired claims adjacent to the SW of its Cerro Las Minitas project in Durango. The claim package comprises two concessions, Biznagas and Los Lenchos, contiguous to the SW to Southern Silver’s concessions. Southern Silver has agreed to make to La Cuesta International Inc. “periodic payments on a semi-annual basis accelerating from $5,000 to $25,000 over a ninety-six month period and a 1% NSR with such periodic payments being credited to NSR payments. Subsequent to payment of $5,000,000 in NSR payments the royalty is reduced to 0.5%. All monetary references are to U. S. dollars.”

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 below, Potassic feldspar alteration in diorite with quartz-barite veinlets, Central Chiapas. Photo by Jorge Cirett.

Diorite, strong potassic alteration, chlorite in fracures and barite veinlets