The Mining and Exploration News in Mexico: Highlights on the Third Week of November, 2022.

Quartz stockwork veining

By Miguel A Heredia

During the 46th week of the year (November 14th to November 20th, 2022), at least 15 press releases were announced by companies working in Mexico, and 3 news published by the media with five reporting resources and developments of their properties, four communicating production and financial results, three informing on exploration results, three commenting on Mexican issues, one disclosing deals and corporate issues, one discussing social issues, and one announcing financing issues. ON MEXICO ISSUES, The mining industry is one of the industries that consumes the least vital liquid and, at the same time, the one that acquires it at the highest cost, refuting the myth about water consumption in mining. Alamos Gold, GoGold, Aztec Minerals, Silver Tiger, and Minaurum Gold reported the best drilling intercepts in Mexico on the third week of November, 2022. ON EXPLORATION, In Sonora, Aztec Minerals reported results for five drill holes from the recently completed phase 3 drill program at its Cervantes project, Tocvan announced that initial drilling is ongoing at its El Picacho project, and Minaurum provided an update on the underground rehabilitation work at the historical Promontorio mine within its Alamos Silver project. ON MINING, Starcore reported Q2, 2022 production and financial results from its San Martin mine in Queretaro. MAG Silver announced Q3, 2022 production and financial results from its Juanicipio project in Zacatecas. US Antimony reported September-October production results. SilverCrest reported Q3, 2022 production and financial results from its Las Chispas project in Sonora. ON FINANCING, Vizsla closed its previously announced bought deal financing for gross proceeds of $CAD 34.5M (Panuco project, Sinaloa).  ON RESOURCES AND DEVELOPMENT, Silver Tiger released results from its on-going drilling program at its El Tigre project in Sonora, and provided an update on the underground rehabilitation of the El Tigre Mine. Gatos Silver announced that it has filed a NI 43-101 technical report to disclose a Mineral Resource and Mineral Reserve update for its Los Gatos project, Chihuahua. Alamos Gold extended high-grade mineralization at its Puerto del Aire Deposit within Mulatos district, Sonora. GoGold released strong results from the new drilling program at its Los Ricos South Main Area and at the newly acquired Eagle concession in Jalisco. Zacatecas Silver announced its initial Mineral Resource Estimate (MRE) at its Esperanza Gold project in Morelos. ON DEALS AND CORPORATE ISSUES, Zacatecas Silver entered into an agreement with Gold Standard Media and with Future Monet Trends to raise awareness of the company`s shares among investors (Esperanza Gold project, Morelos). ON SOCIAL RESPONSIBILITY, Fundación Grupo México in alliance with the Government of Jalisco, promoted the forest recovery in the Municipalities of Sayula, Encarnación de Díaz and Ocotlán through the Ministry of Environment and Territorial Development (SEMADET) in coordination with the Intermunicipal Boards of the Environment (JIMA) and the Jalisco Solidarity Volunteers.

ON MEXICO ISSUE

  • The mining industry is one of the industries that consumes the least vital liquid and, at the same time, the one that acquires it at the highest cost, while agricultural use, which represents 77% of national water consumption, does not contribute any payment for it to the public treasury. Despite the fact that it only consumes 1.4% of the country`s water, the authorization of concessions for the use of this resource for mining constitutes the main source of income for this concept of the Ministry of Environment and Natural Resources (SEMARNAT) and the National Water Commission (CONAGUA).  According to data from the Mining Chamber of Mexico (CAMIMEX), around 50% of government incomes from payment of rights for the use of water in the country are those contributed by mining companies. The Mexican territory is divided in four availability zones and, depending on the zone in which it operates, is the amount that concessionaires must pay for each cubic meter. Mexican mining pays up to MXP $26 for each cubic meter of water, while the average for the different industries is MXP $14. Municipalities pay only MXP $0.58. Meanwhile, the agricultural and livestock sectors, which are the main consumers in the country, do not pay rights for concessions for the use of water and despite this, these users tend to blame mining for the shortage. In Mexico, there are two types of concessions for the use of water: groundwater (located in subsoil aquifers) and surface water (found in rivers and lakes). According to CONAGUA, the main uses of this water resource are agricultural and livestock, which together consume approximately 76.7%; It is followed by urban public use, which is equivalent to 14.1%; the use for electricity generation with 5.1% and industries, whose consumption amounts to 4.1%. Of this amount, 0.9% corresponds to the mining sector.  It refutes the myth about water consumption in mining.
  • Alamos Gold Inc, GoGold Inc, Aztec Minerals Corp, Silver Tiger Metals Inc, and Minaurum Gold Inc reported the best drilling intercepts in Mexico on the third week of November, 2022. Details are shown in the table below:

ON EXPLORATION

  • Aztec Minerals Corp., reported results for five drill holes from the recently completed phase 3 drill program at its Cervantes project in Sonora. Highlights of the drilling include hole CAL22-027 in the West-Central area of the California Zone with 0.68 g/t Au over 120m; and hole CAL22-029, a step out extending the California Zone to the North, with 0.77 g/t Au over 57m.  These results have expanded the footprint of the known extents of the mineralized and altered California quartz feldspar intrusive complex to the North. “The area currently being drilled measures approximately 900 meters long E – W by 730 meters wide, with demonstrated, continuous mineralization of up to 170 meters in depth. The porphyry gold-copper mineralization is still open in all directions”.
  • Tocvan Ventures Corp., announced that initial drilling is ongoing at its El Picacho project in Sonora. The drilling program is focused on two primary areas within the San Ramon prospect: Las Guijas where underground chip samples range from 0.5 to 8.2 g/t Au, with an average of 3.6 g/t Au, and San Ramon where underground samples range from 0.3 to 22 g/t Au, with an average of 5 g/t Au. The property is currently permitted for 14 drill pads. El Picacho is host to several other target areas permitted for drilling that span across the 24 km2 project area.  
  • Minaurum Gold Inc., provided an update on the underground rehabilitation work at the historical Promontorio mine within its Alamos Silver project. It informed that has successfully accessed and is dewatering the main haulage level along with clearing crosscuts in the El Tirito area of the mine, which lies approximately 300m from the Promontorio adit entrance. Approximately 200 tonnes of ballast and 50 tonnes of backfill have been removed from the first 300 m of the haulage level and stockpiled outside the mine entrance. Three of the five service holes that were drilled to provide air, water, and electricity to facilitate underground rehabilitation efforts intercepted the Promontorio Vein. The most significant drill intercept encountered 98 g/t Ag, 3.6% Pb, and 7.9% Zn over 5.8m. In addition, sampling and mapping of dumps at Promontorio revealed a boulder of massive sulfide vein assaying 3,320 g/t Ag, 54.7 g/t Au, 25% Cu, 6.5% Pb, and 1.1% Zn. “The boulder, measuring roughly a meter across, is an indication of the type of grades exploited by early miners at Promontorio”.

ON MINING

  • Starcore International Mines Ltd., reported Q2, 2022 production and financial results from its San Martin mine in Queretaro. The company milled 57,165 tonnes of 1.46 g/t Au and 13 g/t Ag with metallurgical recoveries of 87.14% and 47.86% respectively, to produce 2,452 Oz AuEq.
  • MAG Silver Corp., announced Q3, 2022 production and financial results from its Juanicipio project in Zacatecas, where it owns 44% of the property and Fresnillo plc owns the remainder 56%. The company reported on a 100% basis, that 180,808 tonnes of 513 g/t Ag were processed through the Fresnillo and Saucito plants to produce 2.42M Oz Ag, 4,901 Oz Au, 3M Lb Pb, and 4.56M Lb Zn. MAG reported a net income of USD $8.23M and cash of $USD 39.5M (Juanicipio had cash on hands of $USD 18.2M). Pre-commercial production sales totaled USD $49.7M, less USD $18.1 in mining and transportation costs and USD $6.4M in depreciation and amortization charges, netting USD $25.2M in gross profit by Juanicipio. The company also reported a cash balance at the end of the quarter of USD $18.2M down from USD $37.5M at the end of Q2, 2022.
  • US Antimony Corporation reported September-October production results. The company milled 1,116 tonnes of 0.87 g/t Au and 96 g/t Ag from its Los Juarez Mine in Querétaro. In addition, the company announced that assay results from the previously announced soil sampling and rock chip programs on the 1km x 3 km grid at Los Juarez have been received with analysis values for Sb, Au, Ag, and trace elements. These results are being tabulated and assessed. Geologist and Geophysicist in Mexico have just completed the Geophysical Survey and are in the process of interpreting the results and generating a report. This report may be available prior to Q4 but most likely will be published early in Q1 of 2023.
  • SilverCrest Metals Inc., reported Q3, 2022 production and financial results from its Las Chispas project in Sonora. The company produced 4,121 Oz Au and 373.5K Oz Ag (731.6K Oz AgEq) and had its first metal sales of 140.3K Oz Ag at an average price of USD $19.38 per Oz Ag, generating USD $2.7M in revenue. As of September 30, 2022 the company remains well-funded with cash and cash equivalents of USD $88.6M, and a debt balance of USD $90M.

ON FINANCING

  • Vizsla Silver Corp., closed its previously announced bought deal financing of 23.8M units of the company at a price of CAD $1.45 per unit for gross proceeds of $CAD 34.5M. Net proceeds will be used to advance the exploration and development of its Panuco project in Sinaloa, including the delivery of an updated mineral resource estimate in Q4, 2022, as well as for working capital and general corporate purposes.

ON RESOURCES AND DEVELOPMENT

  • Silver Tiger Metals Inc., released results from its on-going drilling program at its El Tigre project in Sonora, and provided an update on the underground rehabilitation of the El Tigre Mine. The most significant drill intercept was encountered in hole ET-22-378 with 0.12 g/t Au, 469 g/t Ag, 0.66% Cu, 0.5% Pb, and 0.6% Zn (525 g/t AgEq) over 6.5m, including 0.25 g/t Au, 1,002 g/t Ag, 0.39% Cu, 0.6% Pb, and 0.7% Zn (1,096 g/t AgEq) over 1m at the Benjamin Vein Zone, plus 0.15 g/t Au, 212 g/t Ag, 0.12% Cu, 2.5% Pb, and 6.9% Zn (524 g/t AgEq) over 6.9m, including 0.28 g/t Au, 940 g/t Ag, 0.6% Cu, 6.9% Pb, and 16.2% Zn (1,720 g/t AgEq) over 0.8m at the Shale Zone. The company also reported that the underground rehabilitation of the historic El Tigre mine is progressing well. Silver Tiger reported that to date it has rehabilitated over 450m in level 7, which was the main portal to the mine. “Silver Tiger is still on schedule to reach the Sooy Vein and then begin underground drilling of this new discovery under the Northern end of the unmined portion of the Historic El Tigre Mine”.
  • Gatos Silver Inc., announced that it has filed a NI 43-101 technical report to disclose a Mineral Resource and Mineral Reserve update for its Los Gatos project, Chihuahua.
  • Alamos Gold Inc. reported new results from its ongoing drilling program and extended high-grade mineralization at its Puerto del Aire Deposit within Mulatos district, Sonora. Puerto Del Aire is a higher-grade underground deposit, adjacent to the main Mulatos pit, and is comprised of five zones including PDA1, PDA2, Gap, Victor and Estrella. Highlights of the drilling at PDA1 Zone include hole 21MUL051 with 32.24 g/t Au uncut ( 20.78 g/t Au cut) over a  true width (TW) of 5.30m; hole 21MUL019 with 4.26 g/t Au over a TW of 2.25m, plus 26.28 g/t Au uncut (20.44 g/t Au cut) over a TW of 4.60m; hole 21MUL014 with 4.43 g/t Au over a TW of 4.50m, plus 18.01 g/t Au uncut (15.27 g/t Au cut) over a TW of 6.15m; hole 21MUL016 with 3.64 g/t Au over a TW of 6m, plus 3.02 g/t Au over a TW of 1.50m, plus 3.12 g/t Au over a TW of 11.50m, plus 3.63 g/t Au over a TW of 26.05m; hole MUL21021 with 10.66 g/t Au over a TW of 5.90m, plus 4.20 g/t Au over a TW of 12.25m, plus 14.57 g/t Au over a TW of 2.75m, plus 10.86 g/t Au over a TW of 8.35m; and hole 21MUL015 with 4.90 g/t Au over a TW of 1.15m, plus 6.78 g/t Au over a TW of 10.50m, plus 4.99 g/t Au over a TW of 1.40m. Highlights of the drilling at PDA2 Zone include hole 22MUL039 with 4.06 g/t Au over a TW of 0.85m, plus 13.89 g/t Au uncut (9.26 g/t Au cut) over a TW of 10.35m; hole 22MUL053 with 8.75 g/t Au over a TW of 13.15m, plus 7.7 g/t Au over a TW of 6m, plus 8.90 g/t Au over a TW of 3m, plus 4.20 g/t Au over a TW of 12.95m; hole 22MUL058 with 7.62 g/t Au over a TW of 14.65m; hole 22MUL052 with 3.07 g/t Au over a TW of 1.50m, plus 32.60 g/t Au over a TW of 2.35m, plus 10.90 g/t Au over a TW of 1.50m, plus 11.40 g/t Au over a TW of 1.50m; and hole 22MUL046 with 4.01 g/t Au over 1.70m, plus 13.22 g/t Au over 4.50m. Highlights of the drilling at Victor-Gap Zone include hole 21MUL011 with 31.97 g/t Au uncut (11.80 g/t Au cut) over a TW of 12.90m. “Drilling to date has demonstrated the significant potential to further expand high-grade mineralization at Puerto Del Aire with the deposit open in multiple directions”.
  • GoGold Resources Inc., released strong results from the new drilling program at its Los Ricos South Main Area and at the newly acquired Eagle concession in Jalisco. Highlights of the drilling include hole LRGG-22-209 collared at Los Ricos South Main Area with 3.15 g/t Au and 276 g/t Ag (6.84 g/t AuEq or 513 g/t AgEq) over 33.2m, including 30.19 g/t Au and 2,588 g/t Ag (64.69 g/t AuEq or 4,852 g/t AgEq) over 3m, including 73.10 g/t Au and 5,620 g/t Ag (148.03 g/t AuEq or 11,103 g/t AgEq) over 1m; and hole LRGG-22-043 collared at the Eagle Concession with  0.67 g/t Au and 78 g/t Ag (1.72 g/t AuEq or 129 g/t AgEq) over 8.2m, plus 1.32 g/t Au and 216 g/t Ag (4.20 g/t AuEq or 315 g/t AgEq) over 20.7m, including 2.73 g/t Au and 428 g/t Ag (8.44 g/t AuEq or 633 g/t AgEq) over 9.3m, including 7.89 g/t Au and 999 g/t Ag (21.21 g/t AuEq or 1,591 g/t AgEq) over 2.5m, including 17.20 g/t Au and 2,130 g/t Ag (45.80 g/t AuEq or 3,420 g/t AgEq) over 0.70m. The purpose of the program is to better define the very high grade portions of the current deposit that may be amenable to bulk underground mining.  “The Company exploration team has been completing detailed mapping and sampling at Jamaica over the last year and sees the same structure that was drilled in the main zone at Los Ricos South extending for several kilometers over the Jamaica concessions.  This offers the potential for an additional bulk tonnage target in Los Ricos South, with continuity from the Main Area and Eagle”.
  • Zacatecas Silver Corp., announced its initial Mineral Resource Estimate (MRE) at its Esperanza Gold project in Morelos. A summary of the MRE is shown in the table below:

ON DEALS AND CORPORATE ISSUES

  • Zacatecas Silver Corp., entered into an agreement with Gold Standard Media and with Future Money Trends LLC to raise awareness of the Company’s shares among investors.  The engagement is for 12 months of services, with amounts payable as follows: USD $100K on acceptance of the TSX Venture Exchange, USD $100K within 3 months, USD $100K within 6 months and USD $100K within 9 months.  Subject to TSX Venture Exchange acceptance, the activities will commence late November, 2022 and are for a period of one year.

ON SOCIAL RESPONSIBILITY

  • Fundación Grupo México in alliance with the Government of Jalisco, promoted the forest recovery in the Municipalities of Sayula, Encarnación de Díaz and Ocotlán through the Ministry of Environment and Territorial Development (SEMADET) in coordination with the Intermunicipal Boards of the Environment (JIMA) and the Jalisco Solidarity Volunteers.

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, quartz stockwork veining from a low sulphidation epithermal vein system in a project in Sonora, Mexico.  Photo by Miguel A Heredia.

Mexico’s Best Drilling Intercepts on the Third Week of November 2022

This week’s outliers were the intercepts released by Alamos Gold on the Puerto del Aire deposit in the Mulatos project in Sonora. Especially the almost 13 meters averaging over an ounce of gold per tonne, which comes to a whopping 412.4 gpt*m. These results remark the high grades that some zones of high sulfidation deposits can attain in Mexico. Aztec Minerals released good gold assays from its Cervantes project, also in Sonora, a gold-copper porphyry intruding Paleozoic sedimentary rocks.

The rest of intervals high in gold, silver, lead and zinc come from the structurally controlled low to intermediate sulfidation epithermal deposits of Los Ricos South in Jalisco and El Tigre and Alamos Silver in Sonora. The South Main and Eagle area results from Gogold’s Los Ricos South are the strongest in gold and silver in this type of deposits, whereas Silver Tiger’s and Minaurum’s drill intervals from El Tigre and Alamos Silver are stronger in lead and zinc.

Mexico’s Best Drilling Intercepts, First Week of November 2022

This week’s best intercepts were to be dominated by the long good-grade gold-silver intercepts of GoGold Resources on the Eagle zone of the Los Ricos South project in Jalisco…… if not by the release by Pan american Silver of lengthy intercepts of zinc-lead-silver-copper at its La Colorada Skarn deposit in Zacatecas, which is steadily confirming the presence of a World Class Mineral Deposit. Los Ricos South and the Plomosas mine, in Sinaloa, projects represent both intermediate sulfidation epithermal systems in veins and stockwork zones, while La Colorada Skarn and Cerro Las Minitas intercepts represent skarn systems.

At Los Ricos South the best intercept comprises 110.60 m @ 1.64 gpt Au, 265 gpt Ag, including a high grade zone of 11.50 m @ 11.35 gpt Au, 2,198 gpt Ag, whilst at Plomosas, in Sinaloa, the best intercept comprised 36.50 m @ 1.00 gpt Au, 268 gpt Ag, similar grades but lesser thickness, although true width and not core length as the former. Some of the core intervals at La Colorada Skarn are high-grade in silver, like the 58.30 m @ 417 gpt Ag, although far from representative of the overall grade. At Cerro Las Minitas, in Durango, the best intercept silver intercept is 1.90 m @ 599 gpt Ag, interesting, but obscured by the shadow of La Colorada Skarn, Los Ricos South and Plomosas and Plomosas silver results.

Base metals best drilling intercepts are dominated by those from La Colorada Skarn (LCS), as even a tenth of its length at those grades in lead and zinc would be considered a good intercept. The best lead intercepts from LCS comprise 58.30 m @ 11.95% Pb and 92.95 m @ 7.01% Pb, those of Plomosas 11.40 m @ 9.20% Pb and 36.50 m @ 2.40% Pb; and 1.90 m @ 16.90% Zn at Cerro Las Minitas. For zinc the results are not that different, with 197.50 m @ 7.21% Zn, 194.45 m @ 4.26% Zn and 90.85 m @ 9.08% Zn at LCS, 16.90 m @ 4.80% Zn and 6.50 m @ 6.80% Zn at Plomosas and 1.90 m @ 10.20% Zn at Cerro Las Minitas. Copper intercepts made it to this list not by the grade, but for the length of the intercepts at LCS, with 194.45 m @ 0.21% Cu and 197.50 @ 0.09% Cu.

Mexico’s Best Drilling Intercepts on the Third Week of October 2022

It is not common to have news with high grade drill intercepts like those of last week by Regency Silver at Dios Padre in Sonora, and even less common to have results as good or better the following week, as GoGold has announced from Los Ricos South in Jalisco, or by GR Silver from San Marcial in Sinaloa. Both projects cover structurally controlled epithermal systems of either low or intermediate sulfidation affinity.

The Mining and Exploration News in Mexico: Highlights on the Second Week of October 2022

During the 41st week of the year (October 10th to October 16th, 2022), 15 companies working in Mexico released news on their properties. Three companies posted exploration advances on their properties, six companies released Q3 2022 results, one company is to undertake a private placement and one more expanded on the maturity extension of convertible debentures and three companies released drilling results from their advanced properties.  ON MEXICO ISSUES, no relevant news. ON EXPLORATION, in Sonora, Regency Silver released drilling results from the Dios Padre property, including great results from a hole testing a geophysical anomaly 500 m from the historic resource. Prismo Metals updated on the drilling program and sampling protocol at Palos Verdes. In Durango, Silver Wolf updated on exploration at its Ana Maria project. ON MINING, Endeavour Silver, Torex Gold, GoGold Resources, Orla Mining, Gatos Silver and Gold Resource released Q3 2022 production results. ON FINANCING, Sonoro Resource is to undertake a financing round for C$525 K. Barksdale Resources extended the maturity date of convertible debentures with a remaining principal amount of $1.5 M.  ON RESOURCES AND DEVELOPMENT, Avino Silver and Gold Mines released drilling results from its Avino mine in Durango. Prime Mining provided drilling results from Los Reyes property, in Sinaloa. Vizsla Silver reported drilling results from the southern part of the Napoleon vein at its Panuco project in Sinaloa. ON DEALS AND CORPORATE ISSUES, no relevant news. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • No Relevant News.

ON EXPLORATION

  • Prismo Metals Inc. updated on the drill program at its Palos Verdes project in Sinaloa. A total of 1,062 m have been drilled of the planned minimum 2,000 m. Three holes have been completed and one is in progress testing the Palos Verdes vein and a structural intersection. By analyzing Vizsla’s Silver recent drill data on the adjacent Panuco project, a new sampling protocol has been implemented, including wallrocks with quartz veining. Several long intervals of the past drilling campaign will be also sent to the lab.
  • Regency Silver Corp. released results from the first 12 holes at its Dios Padre property in Sonora. The highlighted core length interval of the first hole on a geophysical anomaly 500 m north of the historic resource comprise 53.8 m @ 4.7 gpt Au (including 35.8 m @ 6.84 gpt Au, 22 gpt Ag, 0.88% Cu and 9.8 m @ 13.97 gpt Au, 50 gpt Ag, 1.11% Cu) starting at 420 m depth. Au-Cu-Ag mineralization in this hole is largely breccia hosted, with pyrite and chalcopyrite forming the breccia matrix. “The core of the mineralized zone sits within and adjacent to a felsic intrusive body, though mineralization is present both within the felsic unit as well as the host andesites. Both rock units are strongly altered to white mica with some silica”. The hole was stopped due to the 500 m maximum capacity of the rig being used. Highlighted intervals were released by element, comprising 60 m @ 0.33% Cu; 52 m @ 0.69% Cu (including 33 m @ 0.94% Cu) and 29.3 m @ 0.36 gpt Au; 6 m @ 0.68 gpt Au; 53.8 m @ 4.7 gpt Au; 21.5 m @ 0.53 gpt Au; 4.2 m @ 2.1 gpt Au; 49.65 m @ 0.58 gpt Au; 10 m @ 0.57 gpt Au; 17.9 m @ 1.34 gpt Au; 23.65 m @ 0.36 gpt Au and 26.3 m @ 63 gpt Ag;  (including 4.3 m @ 317 gpt Ag); 60 m @ 19 gpt Ag; 8 m @ 60 gpt Ag; 18 m @ 14 gpt Ag; 8 m @ 67 gpt Ag; 12 m @ 45 gpt Ag; 17.5 m @ 135 gpt Ag (including 3.9 m @ 582 gpt Ag); 2.2 m @ 220 gpt Ag; 10.95 m @ 302 gpt Ag; 6.95 m @ 336 gpt Ag; 18.55 m @ 50 gpt Ag; 7.5 m @ 113 gpt Ag; 3.1 m @ 420 gpt Ag; 21.5 m @ 137 gpt Ag; 9.6 m @ 56 gpt Ag; 1 m @ 603 gpt Ag; 37.4 m @ 110 gpt Ag (including 19.65 m @ 203 gpt Ag).
  • Silver Wolf Exploration Ltd. reported on exploration at its 2,500 hectares Ana Maria property in Durango. Two main targets are being defined using a carbonate replacement deposit (CRD) model. The central claim block hosts a gold skarn type showing, while the southern claim block is distal to the intrusive, hosting CRD Ag-Zn-Pb prospects and historical small mines. “Continued work on the central claims include a reinterpretation of geophysical results to fine tune the magnetics data and further identify the intrusive contacts with the surrounding limestone at depth”.

ON MINING

  • Endeavour Silver Corp. reported third quarter 2022 production results, with 202.7 K tonnes processed at a daily rate (tpd) of 2,204 tonnes grading 248 gpt Ag, 1.60 gpt Au to produce 1.46 M Oz Ag, 9,194 Oz Au. At Guanaceví, in Durango, 97.7 K tonnes were processes at 1,062 tpd, grading 468 gpt Ag, 1.29 gpt Au with a recovery of 90.6% Ag, 89.9% Au to produce 1.33 M Oz Ag, 3,642 Oz Au. At Bolañitos, in Guanajuato, 105 K tonnes were processed at 1,141 tpd, grading 43 gpt Ag, 1.88 gpt Au with a recovery rate of 87.0% Ag, 87.5% Au, to produce 126.3 K Oz Ag, 5,552 Oz Au. Positive drilling results have been received from Guanaceví and Parral, extensive due diligence work continues at Terronera (Jalisco) and the El Compas property and plant were sold for $5 M over five years.
  • Torex Gold Resources Inc. reported Q3 2022 gold production from its El Limón Guajes mining complex in Guerrero. During the period 9,600 tonnes per day (tpd) were mined by open pit and 1,550 tpd from underground, processing an average of 13 K tonnes to produce 122,200 Oz Au.
  • GoGold Resources Inc. reported production for the quarter ending on September 30, 2022. At the Parral tailings project in Chihuahua, 145.9 K Oz Ag, 2,278 Oz Au, 124 tonnes Cu were produced during the period. “The Company had $20M USD in input tax recoverable which related to VAT receivable from the Mexican Federal Government for the years of 2017 to 2022. The Company received $11M which related to 2017 and 2018 which included interest of $5M. Management continues to work with the tax authority on the remaining claims and expects to receive these amounts in due course”.
  • Orla Mining Ltd. provided an interim operational update for the third quarter of 2022. At Camino Rojo in Zacatecas, 4.13 M tonnes were mined, of which 1.74 M tonnes @ 0.88 gpt Au were processed, 0.43 M tonnes @ 0.32 gpt Au were stockpiled (19,200 tonnes per day), and 1.96 M tonnes of waste moved (Strip ratio 0.91), to produce 28,876 Oz Au.
  • Gatos Silver Inc. announced production results for the third quarter 2022 from its 70% owned Cerro Los Gatos property in Chihuahua. During the period 263.3 K tonnes were milled at a rate of 2,862 tpd averaging 356 gpt Ag, 0.34 gpt Au, 2.38% Pb, 4.70% Zn. Recovering 89.6% Ag, 48.9% Au, 88.5% Pb, 65.4% Zn to produce 2.70 M Oz Ag, 1,400 Oz Au, 12.2 M Lb Pb, 17.8 M Lb Zn. “The Company had a cash balance of $15 million and debt outstanding of $13 million related to our credit facility as of September 30, 2022”, and “anticipates completing an impairment assessment based on the 2022 Mineral Reserve in the fourth quarter of 2022 and is working towards completing all outstanding SEC and OSC filings as soon as practicable”.
  • Gold Resource Corp. announced preliminary results in Q3 2022. At the Don David mine in Oaxaca, 110.7 K tonnes were milled (1,361 tpd), averaging 1.98 gpt Au, 80 gpt Ag, 0.37% Cu, 1.59% Pb, 4.21% Zn, to produce 5,851 Oz Au, 261.2 K Oz Ag, 296 tonnes Cu, 1,249 tonnes Pb, 3,901 tonnes Zn. 

ON FINANCING

  • Sonoro Gold Corp. is to undertake a non-brokered private placement offering for gross proceeds of up to C$525 K (Cerro Caliche, Sonora).
  • Barksdale Resources Corp. has finalized the extension of the maturity date of the secured convertible debentures administered by Delbrook Capital Advisors Inc. by one year until December 31, 2023. “The Debentures have a remaining principal amount of $1,500,000 and all other terms of the Debentures remain unchanged except for the conversion price, which has increased to $0.55 per share from $0.45 per share”. Approximately $99 K of accrued interest will be exchanged for 206.6 K shares units consisting of one share and one-half of common share purchase warrant. An extension fee of 2.78 M common share purchase warrants at a price of $0.72 exercisable up to December 2023 was agreed (San Javier, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Avino Silver & Gold Mines Ltd. released drilling results from six holes completed below the current Level 17 mining area at the Elena Tolosa area of the Avino mine in Durango. Highlighted true width (TW) intercepts comprise 26.77 m @ 0.15 gpt Au, 50 gpt Ag, 0.71% Cu; 43.80 m @ 0.15 gpt Au, 15 gpt Ag, 0.49% Cu; 10.90 m @ 0.06 gpt Au, 25 gpt Ag, 1.05% Cu; 9.95 m @ 0.25 gpt Au, 17 gpt Ag, 0.40% Cu; 14.40 m @ 0.17 gpt Au, 30 gpt Ag, 0.19% Cu. These drilling results demonstrate the continuity of grade and thickness of the mineralization currently being mined at the lowest level of the mine. The company is developing a geological model based on a near porphyry environment, supported by the grade continuity over 600 m vertically and base metal zonation.
  • Prime Mining Corp. announced results from five holes in the Z-T area of the Los Reyes property in Sinaloa. Highlighted true width intercepts comprise 13.2 m @ 2.36 gpt Au, 178 gpt Ag; 7.40 m @ 0.91 gpt Au, 139 gpt Ag; 5.60 m @ 3.86 gpt Au, 89 gpt Ag; 5.30 m @ 1.17 gpt Au, 207 gpt Ag. Five rigs have completed 70,590 m of drilling in this phase 2 campaign that is planned to continue to the end of October, while results for 93 holes remain pending.
  • Vizsla Silver Corp. reported results from 12 holes targeting the southern extension of the Napoleon vein at its Panuco project in Sinaloa. Highlighted true width (tw) intervals comprise 1.0 m @ 1.60 gpt Au, 2,642 gpt Ag, 1.9% Pb, 4.1% Zn; 1.0 m @ 3.63 gpt Au, 740 gpt Ag; 0.2% Pb, 1.2% Zn; 1.86 m @ 0.6 gpt Au, 354 gpt Ag, 0.2% Pb, 0.5% Zn; 1.81 m @ 3.12 gpt Au, 1,268 gpt Ag, 0.2% Zn; 0.91 m @ 5.77 gpt Au, 320 gpt Ag, 0.5% Pb, 1.3% Zn. “The new drill holes report high grade silver and gold intercepts from the footwall vein splays and further support grade continuity to the south along the main Napoleon Vein”.

ON DEALS AND CORPORATE ISSUES

  • No Relevant News.

ON SOCIAL RESPONSIBILITY

  • No Relevant News.

On the image below Banded quartz-calcite veinlet in the Sonoran Desert. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the Third Week of September 2022

By Jorge Cirett
During the 37th week of the year (September 12th to September 18th, 2022), at least 27 companies working in Mexico released news on their properties. Four companies posted exploration advances on their properties, one on the resumption of activities after an illegal blockade, one updated on its work plan for the rest of 2022 and one more updated on the commissioning of its new mine. One company begun trading on the OTCQB Venture Market, one more is to pay services with shares, one cancelled its public offering due to market conditions and one more closed its private placement raising $264 K. Eleven companies released drilling results, informed on exploration, updated resource estimates, provided metallurgical test results, released historic drill results and about commissioning on their advanced properties. One company sold a mine in care and maintenance, one is awaiting permits for the operation of a processing plant, one is to switch a mining property to exploration and pursue acquisition opportunities, and two more announced the formation of a JV to mine a deposit.  ON MEXICO ISSUES, Grupo Mexico’s VP alerted on the risk of insufficient supply of minerals for the energy transition. ON EXPLORATION, in Sonora, Infinitum Copper released drilling results from La Adelita; Tocvan Ventures defined a solid target at El Picacho. In Chihuahua, Golden Minerals released drilling results from Yoquivo; Reyna Silver provided results from surface and underground sampling at Batopilas. ON MINING, Equinox Gold informed on the termination of an illegal blockade at Los Filos. Golden Minerals updated on plans for Velardeña, and Rodeo. SilverCrest Metals updated on the commissioning of Las Chispas mine. ON FINANCING, Regency Silver begun trading at the OTCQB Venture Market. Bear Creek Mining had the payment in shares to a service provider approved. Ranchero Gold withdrew the announced public offering due to market conditions. Silver Spruce closed its financing round having raised $264 K.  ON RESOURCES AND DEVELOPMENT, GR Silver Mining released drilling results from its Plomosas project in Sinaloa. Vizsla Silver reported drilling results from the Panuco project in Sinaloa, including one of the highest silver intercepts here recorded. Orla Mining updated on exploration results at the Camino Rojo Sulfides project and exploration on regional targets in Zacatecas. Americas Gold and Silver updated on resources and exploration at its Cosalá property in Sinaloa. Chesapeake Gold informed on metallurgical test results from Metates, in Durango. Guanajuato Silver Company released historic drill hole results from the Valenciana complex in Guanajuato. Mag Silver updated on the commissioning of Juanicipio in Zacatecas Silver Tiger released results from drilling at El Tigre, in Sonora, and on rehabilitation of underground workings. Torex Gold released drilling results from ELG Underground in Guerrero. Pan American Silver provided an updated resource estimate on the La Colorada Skarn deposit in Zacatecas. GoGold Resources released drilling results on Los Ricos North, in Jalisco. ON DEALS AND CORPORATE ISSUES, Endeavour Silver entered into an agreement to sell El Compas property in Zacatecas to a Mexican company. Xali Gold informed Sun River Gold is about to receive the permit for the processing of tailing at El Oro, in Estado de Mexico. Excellon Resources is evaluating the creation of a spin-out company to pursue acquisitions and looking for partners to explore the Platosa property in Durango. Teck Resources and Agnico Eagle Mines reached an agreement to form a JV to mine the San Nicolás VMS deposit in Zacatecas. ON SOCIAL RESPONSIBILITY, no relevant news.
ON MEXICO ISSUES
·        Xavier García de Quevedo, V.P. of Grupo Mexico, alerted about the risks on the energy transition if the mining industry does not rise its production of minerals. The race to zero emissions is augmenting the demand for lithium, nickel, cobalt, manganese, and graphite for the elaboration of batteries, as well of copper, aluminum, zinc, silicon and rare earths for electricity transmission and renewable energy generation. He pointed out that the time frame to obtain environmental permits, land acquisition, water usage permitting, resolution of social conflicts, community development and human capital are founding stones for the future development of mining.
ON EXPLORATION
·        Golden Minerals Co. reported assay results from 15 holes on the third drill program at Yoquivo, in Chihuahua. “Drilling was designed to follow up on high-grade intercepts reported in earlier drill campaigns and to explore the Pertenencia vein system with sufficient drill density to enable a maiden resource estimate in Q1 2023”. Highlighted true width (tw) intervals comprise 4.4 m @ 1.58 gpt Au, 205 gpt Ag; 5.6 m @ 0.83 gpt Au, 110 gpt Ag; 3.7 m @ 2.53 gpt Au, 379 gpt Ag; 24.8 m @ 0.30 gpt Au, 66 gpt Ag; 2.1 m @ 6.70 gpt Au, 339 gpt Ag. Highlighted core length intervals comprise 3.7 m @ 4.49 gpt Au, 767 gpt Ag; 9.3 m @ 0.28 gpt Au, 209 gpt Ag; 1.7 m @ 2.72 gpt Au, 646 gpt Ag; 4.6 m @ 11.42 gpt Au, 155 gpt Ag.
·        Infinitum Copper Corp. released results from two drill holes at La Adelita, in Sonora. Highlighted core length intervals comprise 20.60 m @ 1.91% Cu, 2.00 gpt Au, 41 gpt Ag; 9.15 m @ 0.14% Cu in the Cerro Grande zone. “The mineralization consists of chalcopyrite, bornite and covellite …….. The magnetite content is estimated to vary from 15% to 75% over the 20.60 m length and iron values average 24%”.
·        Tocvan Ventures Corp. completed the compilation and surface evaluation of the San Ramon prospect within El Picacho project in Sonora. “The target area currently consists of a 500-meter by 500-meter area focused around historic workings trending south along the contact of a regional fault”. Historic sampling at one old working returned an average of 3.6 gpt Au in nine samples and an average of 5.0 gpt Au in 23 samples on a second old working. Three historic reconnaissance holes returned 59.3 m @ 0.2 gpt Au: 39.0 m @ 0.2 gpt Au; 15.0 m @ 0.1 gpt Au.
·        Reyna Silver Corp. provided results from surface and underground sampling from Batopilas in Chihuahua. The 2021 and 2022 work has outlined two gold zones, the East Belt and the Teodoro Gold zone, and better defined the high-grade Silver Zone (that made the district famous with its hypogene native silver) with 300 to 1,500 m extensions to the veins. Six percent of 1,458 samples returned 199 to 14,170 gpt Ag and more than 10% between 1.1 to 32.6 gpt Au. Two geochemical distinct gold events have been recognized to be superimposed on earlier silver. Highlighted results comprise 0.6 gpt Au, 14,170 gpt Ag; 0.1 gpt Au, 3,120 gpt Ag; 32.6 gpt Au, 16 gpt Ag; 30.6 gpt Au, 16 gpt Ag; 22.9 gpt Au, 22 gpt Ag; 16.4 gpt Au, 67 gpt Ag; 8.8 gpt Au, 91 gpt Ag; 19 gpt Au, 2,090 gpt Ag. “a new district-scale magneto-telluric (MT) geophysical survey and a detailed structural reanalysis….. will be combined to define targets for the next round of drilling”.   
ON MINING
·        Equinox Gold Corp. reported that after a meeting with Mezcala community leaders, the illegal blockade at the Los Filos mine in Guerrero was removed and operations were resumed.
·        Golden Minerals Co. announced that “Further review of the results from the Company’s test-mining activities at Velardeña (Durango) over the summer and a review of the mine plans have led Golden to the decision to undertake a development and exploration drill program at Velardeña prior to proposing the restart of mining”. At Rodeo, in Durango, Golden maintains its production guidance for 2022 of 12 to 14 K Oz Au and 42 to 47 K Oz Ag.
·        SilverCrest Metals Inc. provided an update on the commissioning of Las Chispas mine in Sonora. Daily throughput and metallurgical recoveries are trending ahead of projections with actual average recoveries of 96.2% Au, 85.6% Ag and 784 tonnes per day (tpd) processing. The project is fully energized by grid power still to achieve complete reliability. Underground mining is ramping up to 600 to 700 tpd (750 tpd design) with continued focus in dilution and recovery. “In 2022, an additional 5.1 km of underground development has been completed at the Mine, bringing the total to 22.6 km. In-vein drifting represents 5.5 km of this total. A total of 109,000 tonnes of ore have been mined from development and stoping activities in 2022 up to the end of August 2022, approximately 9% below the Feasibility Study target”.
ON FINANCING
·        Regency Silver Corp. announced that its common shares have begun trading on the OTCQB Venture Market, a US platform that is operated by the OTC Markets Group in New York (Dios Padre, Sonora).
·        Bear Creek Mining Corp. has received approval for its shares for services with Unison Mining Consulting Pte. Ltd. Bear Creek issued Unison 555 K common shares (Mercedes, Sonora).
·        Ranchero Gold Corp. terminated its marketed public offering due to market conditions. The company is in discussion with investors to fund the continued exploration work that is currently underway at its Santa Daniela gold project and will provide a financing update shortly (Santa Daniela, Sonora).
·        Silver Spruce Resources Inc. announced a second and final closing of its private placement for gross proceeds of $147 K to reach a total of $264 K on the private placement (El Mezquite and Diamante in Sonora).
ON RESOURCES AND DEVELOPMENT
·        GR Silver Mining Ltd. released drilling results that are part of the ongoing resource update program at Plomosas, in Sinaloa. Highlighted core length intervals comprise 5.7 m @ 514 gpt Ag, 0.1 gpt Au, 0.4% Pb, 0.5% Zn (including 1.0 m @ 1,634 gpt Ag, 0.28 gpt Au, 1.2% Pb, 1.0% Zn. 7.3 m @ 55 gpt Ag, 8.66 gpt Au, 2.7% Pb, 6.6% Zn, 0.5% Cu; 5.0 m @ 88 gpt Ag, 0.33 gpt Au, 5.1% Pb, 2.8% Zn, 0.2% Cu; 21.2 m @ 2.1% Pb, 1.3% Zn. “The Company’s underground drilling and mapping program, currently in progress in the Plomosas Mine Area, has identified un-mined zones that will be incorporated into the upcoming resource estimate.
·        Vizsla Silver Corp. reported results from nine holes from the Copala structure at its Panuco project in Sinaloa. Highlighted true width (TW) intervals comprise 10.20 m @ 1,404 gpt Ag, 10.94 gpt Au (including 0.38 m @ 23,058 gpt Ag, 205.0 gpt Au); 7.31 m @ 743 gpt Ag, 2.59 gpt Au (including 1.01 m @ 3,560 gpt Ag, 8.60 gpt Au); 14.24 m @ 632 gpt Ag, 4.30 gpt Au (including 0.71 m @ 1,575 gpt Ag, 11.00 gpt Au and 1.07 m @ 3,510 gpt Ag, 22.80 gpt Au). “The drilling in the northwestern portion of Copala has traced mineralization along approximately 1,000 metres of strike length and approximately 400 metres down dip”.
·        Orla Mining Corp. provided an update on the 2022 exploration program. Phase 2 drilling continues at Camino Rojo Sulfides, with highlighted core length intercepts of 41.5 m @ 2.56 gpt Au; 52.5 m @ 3.08 gpt Au; 61.2 m @ 1.95 gpt Au; 36.60 m @ 3.20 gpt Au; 27.0 m @ 2.13 gpt Au. Orla expects the new drilling to support a new underground development scenario. Reverse circulation drilling on regional exploration targets is to continue through the second half of 2022. The 2022 exploration budget for Mexico was $10 M.
·        Americas Gold and Silver Corp. informed the measured and indicated resources are almost unchanged year-over-year at Cosalá, in Sinaloa. “The Company recently reinterpreted historic geophysical information and, after incorporating new data from an IP survey completed this summer, has identified seven major IP/Mag anomaly trends on property near San Rafael and EC120.  A 17‐hole drill program is planned to test this area”.
·        Chesapeake Gold Corp. provided a metallurgical update for its Metates project in Durango. Samples of ½” material stored for several years were subject to oxidation and then leached with a standard lime cyanide solution for 90 days with recoveries of almost 60% Au and just over 50% Ag. Further tests of new material with no pre-oxidation returned 35% Au, 20% Ag, but when subjected to oxidation, the oxidation rate was slower than at the first test. A second round of testing is underway, including “crushing finer to ¼”, using High Pressure Grinding Rolls (HPGR) to crush finer, different reagent strengths, different pH’s, on/off irrigation, and varying air addition rates”.
·        Guanajuato Silver Company Ltd. provided an exploration update emphasizing historical drill hole data from the Valenciana mines complex in Guanajuato, which “encompasses approximately 4.2 km of strike length along the Veta Madre regional fault structure”. Highlighted true width intervals comprise 1.54 m @ 4.94 gpt Au, 658 gpt Ag; 6.16 m @ 0.97 gpt Au, 140 gpt Ag; 3.07 m @ 2.86 gpt Au, 367 gpt Ag; 12.49 m @ 1.6 gpt Au, 213 gpt Ag; 8.42 m @ 2.84 gpt Au, 389 gpt Ag; 0.62 m @ 14.38 gpt Au, 1,565 gpt Ag; 2.01 m @ 5.0 gpt Au, 866 gpt Ag; 5.25 m @ 0.95 gpt Au, 145 gpt Ag; 1.24 m @ 2.97 gpt Au, 101 gpt Ag.

·        Mag Silver Corp. informed it has been notified by Fresnillo PLC, operator of the Juanicipio project JV in Zacatecas, that the connection of the processing plant installations to the national grid is being tested under caution to protect the grid from undue fluctuations. “The Fresnillo project team indicates that power for final commissioning and start of operations should be available by the end of October, and that production ramp up will commence in Q4 of this year”.

·        Silver Tiger Metals Inc. released drilling results from El Tigre project in Sonora. Highlighted core length results comprise 8.1 m @ 554 gpt Ag, 0.17 gpt Au, 0.92% Cu, 2.5% Pb, 3.6% Zn (including 2.0 m @ 1,270 gpt Ag, 0.2 gpt Au, 1.66% Cu, 2.8% Pb, 4.3% Zn);  0.5 m @ 2,010 gpt Ag, 0.27 gpt Au, 2.51% Cu, 1.5% Pb, 5.0% Zn; 1.1 m @ 3,096 gpt Ag, 1.79 gpt Au, 0.68% Cu, 1.2% Pb, 0.2% Zn; 0.6 m @ 3,097 gpt Ag, 2.47 gpt Au, 0.32% Cu, 1.0% Pb, 0.8% Zn. Silver Tiger “contracted Cominvi, a Mexican underground contract mining and development company to rehabilitate the Historic El Tigre Mine. Cominvi are progressing well in the underground rehabilitation of the Historic El Tigre Mine and have already completed over 400 meters of rehabilitation in Level 7, which was the main portal to the mine”.

·        Torex Gold Inc. reported assay results from the drill program at El Limón Guajes (ELG) underground mine in Guerrero, including the Sub-Sill and El Limón Deep zones. Highlighted core length intervals comprise 17.5 m @ 16.96 gpt Au; 9.7 m @ 16.87 gpt Au, 0.22% Cu; 11.7 m @ 10.39 gpt Au; 5.5 m @ 13.49 gpt Au, 8 gpt Ag, 0.22% Cu; 8.2 m @ 8.52 gpt Au, 23 gpt Ag, 1.69% Cu; 5.0 m @ 10.37 gpt Au, 10 gpt Ag, 0.51% Cu; 12.5 m @ 5.48 gpt Au, 0.15% Cu; 21.3 m @ 7.18 gpt Au, 26 gpt Ag, 0.77% Cu; 9.7 m @ 10.01 gpt Au, 11 gpt Ag, 0.30% Cu; 8.9 m @ 7.66 gpt Au, 0.12% Cu; 12.1 m @ 7.65 gpt Au, 0.40% Cu; 5.1 m @ 9.72 gpt Au, 0.15% Cu. The drilling budget for ELG Underground is $6 M for 27,000 meters. For Media Luna, a total of $19 M is budgeted for 64,000 m of infill, step-out and initial infill drill program at the adjacent EPO deposit. An additional $9 M is budgeted for 28,500 m of drilling across the broader land package and further $5 M for ore control and definition drilling in the ELG open pit and underground. “The ELG mining complex…. is hosted in the Mesozoic carbonate-rich Morelos Platform, which has been intruded by Paleocene granodiorite stocks, sills, and dikes. Skarn-hosted gold mineralization is developed along the contacts of the intrusive rocks and the enclosing carbonate-rich sedimentary rocks…. The style of mineralization at Sub-Sill South is like Sub-Sill and ELD, and is characterized by gold, which is strongly associated with bismuth and variable amounts of silver and copper. Gold occurs in variably sulfidized, pyrrhotite-rich skarn, while silver and copper mineralization is controlled primarily by the degree of sulfidation of the host skarn. Mineralization is associated with retrograde alteration characterized by the occurrence of phlogopite, amphibole, chlorite, calcite and lesser amounts of quartz and epidote, and local magnetite”.

·        Pan American Silver Corp. released an updated mineral resource estimate for its La Colorada Skarn deposit in Zacatecas. The estimated indicated mineral resource totals 95.9 M tonnes containing 94.4 M Oz Ag, 2.7 M tonnes Zn, 1.2 M tonnes Pb, with the estimated inferred mineral resource totaling 147.8 M tonnes containing 132.9 M Oz Ag, 3.4 M tonnes Zn, 1.5 M tonnes Pb. A total of 234,000 m of drilling have been completed to date on the deposit. “The polymetallic skarn mineralisation is concentrated in three zones, which cover an area of 1,500 metres by 1,100 metres laterally, and a depth of between 600 metres and 1,900 metres below surface…. The deposit is oriented in a north-northwest to south-southeast direction and is below the currently active Candelaria mine workings.

·        GoGold Resources Inc. released results from 21 holes at El Nayar and Gran Cabrera areas within Los Ricos North property in Jalisco. Highlighted core length intervals comprise 10.5 m @ 0.18 gpt Au, 61 gpt Ag; 5.3 m @ 0.38 gpt Au, 66 gpt Ag; 0.9 m @ 6.66 gpt Au; 9.3 m @ 0.15 gpt Au, 89 gpt Ag; 18.2 m @ 1.54 gpt Au, 125 gpt Ag at El Nayar, and 60.10 m @ 45 gpt Ag; 18.0 m @ 0.13 gpt Au, 105 gpt Ag; 18.0 m @ 0.21 gpt Au, 62 gpt Ag; 9.6 m @ 0.17 gpt Au, 74 gpt Ag; 6.8 m @ 0.31 gpt Au, 78 gpt Ag; 8.7 m @ 0.23 gpt Au, 128 gpt Ag; 4.1 m @ 0.26 gpt Au, 200 gpt Ag; 30.7 m @ 64 gpt Ag; 17.3 m @ 0.19 gpt Au, 118 gpt Ag (including 1.6 m @ 1.28 gpt Au, 809 gpt Ag). “The Gran Cabrera mega-system contains stockworks, breccia hosted ore bodies, and large vein feeder sub-systems…”. Dozens of historical underground workings are present along an E-W trending structure over 1,700 m along strike with widths extending more than 20 m. El Nayar consists of multiple subvertical veins and stockwork mineralization and limited historical workings.
ON DEALS AND CORPORATE ISSUES
·        Endeavour Silver Corp. entered into an agreement with Grupo ROSOGO S.A. de C.V. to sell a 100% interest on the El Compas property and the lease on the La Plata processing plant in Zacatecas. ROSOGO is to pay Endeavour $5 M cash over five years, with an initial payment of $250 K. Installment payments of $500 K will be made every six months other than the third payment, which will be $750 K.
·        Xali Gold Corp. informed Sun River Gold expects to receive the permit for tailings removal at El Oro, in Estado de Mexico, within a month. Sun River is also working on a permit to install and operate a reprocessing plant outside of El Oro town. “Xali Gold is to receive a 5% Net Profits Interest as well as the first US$1.5M due to the Municipality of El Oro from SRG’s El Oro tailings operations”. In Nayarit Xali is in negotiations to partner with a local Mexican mining group to operate the San Dieguito de Arriba plant and explore nearby mining properties. At El Dorado in Nayarit the company is in the process to obtain the drilling permit. The Cocula property in Jalisco exploration agreement has been terminated.
·        Excellon Resources Inc. provided a corporate update stating the evaluation of a spin-out exploration company, the pursue of acquisitions opportunities with emphasis in Mexico and exploring partnership opportunities to take Platosa in Durango from production to an interesting exploration prospect.
·        Teck Resources Ltd. and Agnico Eagle Mines Ltd. announced an agreement under which Agnico Eagle is to gain 50% interest in the San Nicolás project in Zacatecas. “Teck and Agnico Eagle will become 50/50 joint venture partners at San Nicolás”. Agnico Eagle is to buy US$580 M in shares of a Teck subsidiary. These proceeds will be used for study and development costs, and the contributions made as the costs are incurred, with no up-front payment by Agnico and funding for the first two years estimated at US$50 M. “post-closing costs with subsequent funding to be contributed according to each partner’s ownership percentage”.  San Nicolás is the largest undeveloped volcanic hosted massive sulfide deposit in Mexico, estimated to contain 105.2 M tonnes of proven and probable mineral reserves averaging 1.12% Cu, 1.48% Zn, 0.4 gpt Au, 22 gpt Ag. The development capital costs are estimated to be in the range of US$1,000 M to US$1,100 M, for an open pit operation with a 15 year mine life.    
ON SOCIAL RESPONSIBILITY
·        No Relevant News.
On the image below: Bladed calcite casts in an epithermal quartz vein in the Sonoran Desert. Picture by Jorge Cirett.

Mexico’s Best Drilling Intercepts, Third Week of September 2022

A busy week regarding press releases with drilling results from properties in Mexico. Eight companies posted drilling intervals, seven of which produced interesting gold numbers, five on relevant silver intercepts and a few with good base metals numbers. While the majority of intervals represent intercepts on intermediate to low sulfidation epithermal systems, the two projects with stronger gold intercepts represent a skarn system (El Limón Guajes in Guerrero) and a deposit likely to be associated, although distal, to an intrusive body (Camino Rojo in Zacatecas). Another skarn mineralization system, Adelita in Sonora, also returned high gold numbers. Low to intermediate sulfidation mineralization systems include all the highlighted silver intercepts of the week, of which the most relevant is the 10.20 m @ 1,404 gpt Ag announced by Vizsla at its Panuco project in Sinaloa. Both highlighted copper intercepts come from Skarn systems, while all relevant lead and zinc intercepts come from low to intermediate sulfidation epithermal systems.

The Mining and Exploration News in Mexico: Highlights on the Second Week of September, 2022.

Porphyry copper mineralization

By Miguel A Heredia

During the 36th week of the year (September 05th to September 11th, 2022), at least 23 press releases were announced by companies working in Mexico, and 4 news published by the media with seven informing on exploration results, seven communicating production and financial results, five reporting resources and developments of their properties, five commenting on Mexican issues, two announcing financing issues, and one discussing social issues. ON MEXICO ISSUES, Equinox informed that mining activities at its Los Filos mine in Guerrero have been temporarily suspended due to an illegal blockade. Rocío Nahle, Secretary of Energy announced that Lithium for Mexico (LitioMx) will hold the first meeting of its Board of Directors on September 20, 2002. The Attorney General’s Office (FGR) reported that three arrest warrants have been issued against the same number of people, for the events that occurred in the Coahuila mine ‘El Pinabete’, where 10 workers are trapped. Reyna Gold Corp., GoGold Resources Inc., GR Silver Mining Ltd., Endeavour Silver Corp., Prime Mining Corp., Kootenay Silver Inc., Silver Spruce Resources Inc., and Vizsla Silver Corp., reported the best drilling intercepts in Mexico on the second week of September, 2022. ON EXPLORATION, In Sonora, Aztec completed the first seven holes of phase 3 drilling program at its Cervantes project, Silver Spruce and its partner Colibri Resources Corp., drilled 19 RC holes for a total of 2,005m at its El Diamante project and reported initial results from the first holes, Reyna Gold announced results from 22 holes totaling 3,823m of its ongoing 10,000m regional exploration drill program at its la Gloria project, and Infinitum Copper reported completion of the first phase of the current program at its flagship La Adelita project. In Chihuahua, Kootenay released results from eleven holes collared at its Columba project.  In Zacatecas, Galore reported that completed 3 holes in the San Jose area at its Dos Santos project. ON MINING, no relevant news. ON FINANCING, Barksdale announced a non-brokered private placement for gross proceeds of $2M (San Javier project, Sonora). Sierra Madre closed the first tranche of its previously announced brokered private placement for aggregate gross proceeds of $10M (La Guitarra property, State of Mexico). ON RESOURCES AND DEVELOPMENT, Bear Creek announced that it engaged Unison to design and Renoir to implement a 32-week performance improvement program at its Mercedes mine in Sonora. Vizsla reported results from 14 new holes drilled within the Tajitos-Copala resource area at its flagship Panuco project, Sinaloa.  Endeavour reported results from its ongoing drilling program at its Parral project in Chihuahua. GoGold released results from seven new holes drilled at the El Favor East Deposit within its Los Ricos North property in Jalisco. GR Silver reported results from 3 holes drilled at its San Marcial project in Sinaloa. Prime Mining announced additional phase 2 drill results from its Los Reyes project in Sinaloa. Regency Silver completed a 2,000m drilling program at its flagship Dios Padre project in Sonora. ON DEALS AND CORPORATE ISSUES, Aztec announced the appointment of a new member to its Board of Directors (Cervantes project, Sonora). Vizsla announced that it has filed its 2022 annual report with the U.S. Securities and Exchange Commission (SEC) (Panuco project, Sinaloa).  Riverside and BHP extended into a fourth year its Sonora Mexico exploration program. Galore reported results of its annual general meeting of shareholders and announced the grant of incentive stock options to directors and officers (Dos Santos project, Zacatecas). Gatos Silver provided bi-weekly status report in accordance with National Policy 12-203 – Management Cease Trade Orders due to the delay in the filing of  annual reports which includes its audited consolidated financial statements, together with the management’s discussion and analysis, relating to the audited annual financial statements, and the Chief Executive Officer and Chief Financial Officer certificates relating to its annual filings for the years 2021 and 2022 (Cerro Los Gatos, Chihuahua). ON SOCIAL RESPONSIBILITY, Peñoles and Fresnillo plc support the Heroic Fire Department and the Red Cross with supplies and training.

ON MEXICO ISSUE

  • Equinox Gold Corp., informed that mining activities at its Los Filos mine in Guerrero have been temporarily suspended due to an illegal blockade by members of the nearby Mezcala community. The blockade is preventing delivery of certain supplies to the Los Filos Mine that are required to maintain operations. 
  • Rocío Nahle, Secretary of Energy announced that Lithium for Mexico (LitioMx) will hold the first meeting of its Board of Directors on September 20, 2002. The secretary added that the use of lithium is essential for the energy transition, since it allows the production of batteries. “Right now, it is in high demand around the world for its power to store electricity,” she stressed. She recalled that wind and solar plants are intermittent sources of energy, so “white gold” represents a great opportunity for the Mexican energy sector.
  • The Attorney General’s Office (FGR) reported that three arrest warrants have been issued against the same number of people, for the events that occurred in the Coahuila mine ‘El Pinabete’, where 10 workers are trapped. Since last August 5, the FGR began the investigation procedure for the events that occurred in the mine, owned by the mining company ‘El Pinabete’ S.A de C.V. The FGR reported that the arrest warrants are for the probable commission of the crime provided for and sanctioned in article 150 in relation to article 149 of the General Law of National Assets.
  • Mexican President, Andrés Manuel López Obrador does not rule out comprehensive mining law reform. A month after the collapse of a coal mine in Sabinas, Coahuila, where 10 miners remain trapped and rescue works do not seem to yield results, President López Obrador said he does not rule out a comprehensive reform to the Mining Law, aimed at preventing such incidents from happening again. The reform would also set stricter rules for extractive activities. López Obrador did not mention exactly when is he planning to propose his reform, but it seem to have the support from at least most of MORENAs senators and one of the most important Unions in Mexico.
  • Reyna Gold Corp., GoGold Resources Inc., GR Silver Mining Ltd., Endeavour Silver Corp., Prime Mining Corp., Kootenay Silver Inc., Silver Spruce Resources Inc., and Vizsla Silver Corp., reported the best drilling intercepts in Mexico on the second week of September, 2022. Details are shown in the table below:

ON EXPLORATION

  • Aztec Minerals Corp., completed the first seven holes of phase 3 drilling program at its Cervantes project in Sonora to drill test three targets: California, California Norte and Jasper.  The company has drilled a total of 1,607m in seven holes from the 3,000m planned in eleven holes. Assay results are pending and are expected to arrive in the next coming weeks.
  • Silver Spruce Resources Inc., and its partner Colibri Resources Corp., drilled 19 RC holes, being 10 holes at the La Prieta target and 9 holes at El Pillado target, for a total of 2,005m at its El Diamante project. Highlights of the drill intersections at El Pillado target include hole DIA22-01 with five intervals to 3m with two sections exceeding 1% Zn; hole DIA22-02 with six intervals to 3m with one section containing 3.9% Zn; hole DIA22-05 with five intervals with significant metal values, including 24-30m (high silver to 251 g/t Ag, Zn to 1.9 %), 33-36m (Ag to 397 g/t, Pb+Zn to combined 11.2.%), 43.5-51m (Ag to 257 g/t, Pb+Zn to 13.1.%), 78-81m (Ag to 36 g/t, Pb+Zn to 8.5.%); hole DIA22-06 with a zone of 3m (Ag to 60 g/t and Pb to 1.21%); and hole DIA22-08 with the highest gold of 0.934 g/t Au at a depth of 13.5m with low Ag and base metal values. Final geochemical assay results from drilling at the La Prieta target are currently being compiled and the results will be released soon.
  • Reyna Gold Corp., announced results from 22 holes totaling 3,823m of its ongoing 10,000m regional exploration drill program at its la Gloria project in Sonora, where the company has tested five target areas to date. Drilling highlights at La Republicana target include hole LG-22-30 with 1.45 g/t Au over 59m including 5.96 g/t Au and 20 g/t Ag over 2.85m with a subinterval of 21.5 g/t Au and 30 g/t Ag over 0.8m; 2.29 g/t Au over 6.65m with a subinterval of 4.2 g/t Au and 18 g/t Ag over 3.50m; 6.41 g/t Au and 47 g/t Ag over 2.8m, with a subinterval of 19.5 g/t Au, 141 g/t Ag, 0.3% P, and 0.2% Zn over 0.12m; and 5.79 g/t Au and 52 g/t Ag over 2.95m, with a subinterval of 19.5 g/t Au, 168 g/t Ag, 0.2% Pb, and 0.2% Zn over 0.70m; and hole LG-22-028 with 935 g/t Ag over 5.50m, including 4,640 g/t Ag, 0.93% Cu, and 0.2% Zn over 1m, plus 0.22 g/t Au over 27.30m, including 2.13 g/t Au over 1m, plus 1.49 g/t Au over 0.4m. The company looks forward to additional drilling in La Republicana target.
  • Infinitum Copper Corp., reported completion of the first phase of the current program at its flagship La Adelita project in Sonora. The interpretation of the Magneto Telluric geophysical program is now completed and show good correlation with historic drilling. The strongest anomalies are still untested by drilling. The company also completed 12 holes on the trend of high-grade Cu-Au-Ag skarn mineralization at the Cerro Grande Zone with a total of 2,574m, including 1,848 samples that have been sent to the lab for analysis with results pending.
  • Kootenay Silver Inc., released results from eleven holes collared at its Columba project in Chihuahua. Seven out of the eleven holes were collared at the D Vein and 4 at the B Vein. Drilling highlights at D Vein include hole CDH-22-125 with 158 g/t Ag, 0.1% Pb, and 0.2% Zn over 1.83m, plus 540 g/t Ag, 0.26 g/t Au, 0.4% Pb, and 1.6% Zn over 34.45m, including 1,746 g/t Ag, 0.88 g/t Au, 1.1% Pb, and 5.2% Zn over 9.70m, including 2,498 g/t Ag, 1.28 g/t Au, 1.6% Pb, and 7.5% Zn over 6.10m, including 5,840 g/t Ag, 3 g/t Au, 3.1% Pb, and 17.2% Zn over 2.45m; hole CDH-22-127 with 788 g/t Ag, 0.6% Pb, and 1.3% Zn over 0.98m, plus 103 g/t Ag, 0.04% Pb, and 0.1% Zn over 1m, plus 136 g/t Ag, 0.01% Pb, and 0.1% Zn over 1m; hole CDH-22-128 with 136 g/t Ag, 0.1% Pb, and 0.2% Zn over 20m, including 520 g/t Ag, 0.33 g/t Au, 0.03% Pb, and 0.1% Zn over 2m, plus 277 g/t Ag, 0.3% Pb, and 1.2% Zn over 1m, plus 136 g/t Ag, 0.6% Pb, and 1.3% Zn over 2m; and hole CDH-22-131 with 150 g/t Ag, 0.1% Pb, and 0.2% Zn over 16m, including 311 g/t Ag, 0.2% Pb, and 0.4% Zn over 4.86m, including 603 g/t Ag, 0.02% Pb, and 0.1% Zn over 0.59m. On the B Vein, the most significant drill intersect was encountered in hole CDH-22-134 with 109 g/t Ag and  0.1% Zn over 6.6m, including 251 g/t Ag, 0.1% Pb, and 0.1% Zn over 1.5m, plus 279 g/t Ag, 0.1% Pb, and 0.2% Zn over 0.5m. These drilling results extend known mineralization along strike and beneath existing drilling at both the D Vein and B Vein targets.
  • Galore Resources Inc., completed 3 holes in the San Jose area at its Dos Santos project in Zacatecas. The most significant mineralization was encountered in holes SJ20 with 2.26 g/t Au over 1.20m, plus 2.06 g/t Au over 0.85m; and hole SJ21 with three contiguous intervals of 3.69 g/t Au, 0.79 g/t Au, and 0.59 g/t Au over 1.80m, 0.70m, and 1.30m respectively.

ON MINING

  • No relevant news.

ON FINANCING

  • Barksdale Resources Corp., announced a non-brokered private placement for gross proceeds of $2M. Part of the gross proceeds will be used to finance exploration activities   at its San Javier project, Sonora, as well as for working capital and general corporate purposes. The Company also proposes to extend by a further four months, the expiry date of a total of 7,597,836 share purchase warrants, issued September 29, 2020 and 690,790 share purchase warrants issued October 1, 2020 in connection with a non-brokered private placement. These aggregate 8,288,826 2020 Warrants are exercisable into 8,288,826 common shares and remain at an exercise price of $0.55 per share.
  • Sierra Madre Gold and Silver Ltd., closed the first tranche of its previously announced brokered private placement for aggregate gross proceeds of $10M. The company will use the gross proceeds for the development of it’s the La Guitarra property in the State of Mexico, advancement of engineering studies and general working capital purposes.

ON RESOURCES AND DEVELOPMENT

  • Bear Creek Mining Corporation announced that it engaged Unison Mining Consulting Pte. Ltd., to design and Renoir Management Corporation to implement a 32-week performance improvement program at its Mercedes mine in Sonora. The planned improvements are to re-open closed mining areas to achieve production rates of over 70K Oz Au per year and reduce costs. This program will cost USD $2.15M.
  • Vizsla Silver Corp., reported results from 14 new holes drilled within the Tajitos-Copala resource area at its flagship Panuco project, Sinaloa.  Drilling highlights include hole CS-22-182 with 1,935 g/t Ag and 15.47 g/t Au (2,913 g/t AgEq) over a true width (TW) of 1.46m; hole CS-22-128 with 299 g/t Ag and 2.08 g/t Au (427 g/t AgEq) over a TW of 2.50m, including 995 g/t Ag and 7.6 g/t Au (1,472 g/t AgEq) over a TW of 0.46m; hole CS-22-185A with 302 g/t Ag and 2.02 g/t Au (426 g/t AgEq) over a TW of 1m; and hole CS-22-196 with 278 g/t Ag and 2.33 g/t Au (426 g/t AgEq) over a TW of 2.16m. “The new drill results support a NW-plunging high-grade zone with an average vertical extent of 250 metres and approximate strike length of 500 metres”.
  • Endeavour Silver Corp., reported results from its ongoing drilling program at its Parral project in Chihuahua. High grade silver was encountered in several holes. Drilling highlights include hole CUV-78 with 199 g/t Ag, 4.7% Pb, and 2.6% Zn (428 g/t AgEq) over 3.48m, including 501 g/t Ag, 8% Pb, and 6.5% Zn (971 g/t AgEq) over 0.27m; hole CUV-80 with 322 g/t Ag, 5.2% Pb, and 1.6% Zn (528 g/t AgEq) over 1.67m, including 605 g/t Ag, 14.8% Pb, and 3.5% Zn (1,150 g/t AgEq) over 0.53m; hole VCU-90 with 664 g/t Ag, 1.9% Pb, and 0.8% Zn (747 g/t AgEq) over 5.56m, including 5,600 g/t Ag, 15.3% Pb, and 1.7% Zn (6.096 g/t AgEq) over 0.22m, plus 145 g/t Ag, 0.2% Pb, and 0.5% Zn (168 g/t AgEq) over 3.05m, including 247 g/t Ag, 0.3% Pb, and 1.9% Zn (325 g/t AgEq) over 0.55; and hole CUV-96 with 242 g/t Ag, 0.5% Pb, and 1.7% Zn (317 g/t AgEq) over 5.34m, including 711 g/t Ag, 0.5% Pb, and 2.1% Zn (806 g/t AgEq) over 0.52m. The company has drilled since April 2022 over 5,300m in 23 holes, totaling 8,100m year to date with the aim to define and extend mineralized zones. The high grade Ag results show the potential for resource expansion at depth and along strike in the El Verde and Sierra Plata Deep areas along the Veta Colorada structure.
  • GoGold Resources Inc., released results from seven new holes drilled at the El Favor East Deposit within its Los Ricos North property in Jalisco. Drilling highlights include hole LRGF-22-136 with 0.24 g/t Au and 84 g/t Ag (1.35 g/t AuEq or 101 g/t AgEq) over 4.9m, plus 0.52 g/t Au and 108 g/t Ag (1.96 g/t AuEq or 147 g/t AgEq) over 47.6m, including 2.07 g/t Au and 319 g/t Ag (6.32 g/t AuEq or 474 g/t AgEq) over 10.7m, including 13.47 g/t Au and 615 g/t Ag (21.66 g/t AuEq or 1,625 g/t AgEq) over 1.1m; and hole LRGF-22-124 with 0.31 g/t Au and 111 g/t Ag (1.79 g/t AuEq or 134 g/t AgEq) over 22m, including 1.65 g/t Au and 530 g/t Ag (8.72 g/t AuEq or 654 g/t AgEq) over 3.4m, including 5.05 g/t Au and 1,456 g/t Ag (24.46 g/t AuEq or 1,835 g/t AgEq) over 0.9m. These drill results show extension of the zone to the east and additional high grade infill.
  • GR Silver Mining Ltd., reported results from 3 holes drilled at its San Marcial project in Sinaloa, to follow-up on lateral and down dip, the  high grade encountered previously at the Southeast Area.  Hole SMS22-11 intersected 92 g/t Ag and 0.02 g/t Au over 75.7m, including 102 g/t Ag, 0.01 g/t Au, and 0.1% Zn over 63.6m, including 1,253 g/t Ag, 0.02 g/t Au, 0.5% Pb, and 1.4% Zn over 0.3m, plus 1,032 g/t Ag, 0.01 g/t Au, 0.5% Pb, and 1.9% Zn over 0.4m. Hole SMS22-12 encountered 98 g/t Ag, 0.03 g/t Au, 0.4% Pb, and 0.6% Zn over 44.5m, including 1,059 g/t Ag, 0.01 g/t Au, 0.2% Pb, and 0.5% Zn over 0.2m, plus 537 g/t Ag, 0.06 g/t Au, 0.4% Pb, and 1% Zn over 1m. Hole SMSP22-022 intersected 426 g/t Ag, 0.1% Pb, and 0.2% Zn over 3.2m, including 1,932 g/t Ag, 0.05% g/t Au, 0.2% Pb, and 0.6% Zn over 0.5m. GR Silver informed that additional drilling is in progress aiming to continuously expand lateral and down dip continuity of the Ag mineralization.
  • Prime Mining Corp., announced additional phase 2 drill results from 42 infill and step out drill holes collared at Guadalupe Corridor within its Los Reyes project in Sinaloa. Drilling highlights include hole 22GE-73 with 5.01 g/t Au and 328 g/t Ag over a true width (TW) of 1.9m; hole 22GE-72 with 1.65 g/t Au and 236 g/t Ag over a TW of 13.5m, plus 0.95 g/t Au and 124 g/t Ag over a TW of 6m, plus 2.52 g/t Au and 365 g/t Ag over a TW of 1.5m; hole 22GE-105 with 1.46 g/t Au and 56 g/t Ag over a TW of 14.4m, plus 1.01 g/t Au and 67 g/t Ag over a TW of 1.5m; hole 22GE-70 with 1.38 g/t Au and 38 g/t Ag over a TW of 4.5m; hole 22GE-59 with 2.77 g/t Au and 440 g/t Ag over a TW of 1.1m; hole 22GE-563 with 0.97 g/t Au and 267 g/t Ag over a TW of 2.5m; hole 22GE-77 with 1.28 g/t Au and 45 g/t Ag over a TW of 2.6m; hole 22GE-80 with 1.55 g/t Au and 43 g/t Ag over a TW of 5.7m, plus 1.72 g/t Au and 43 g/t Ag over a TW of 4.8m; hole 22GE-85 with 16.1 g/t Au and 391 g/t Ag over a TW of 0.5m; and hole 22GE-76 with 10.41 g/t Au and 683 g/t Ag over a TW of 0.7m, plus 0.92 g/t Au and 945 g/t Ag over a TW of 1.1m, These drill results expand the Au-Ag mineralization potential at Guadalupe Corridor.
  • Regency Silver Corp., completed a 2,000m drilling program at its flagship Dios Padre project in Sonora. This program was designed to test a large IP anomaly only 550 metres to the north of the existing Dios Padre historical workings to determine whether it represents a significant continuation of the mineralization, as well as  to test for extensions to the existing Dios Padre mineral resource. Final assay results are expected in early October. The Company will release the results shortly thereafter.

ON DEALS AND CORPORATE ISSUES

  • Aztec Minerals Corp., announced the appointment of a new member to its Board of Directors (Cervantes project, Sonora).
  • Vizsla Silver Corp., announced that it has filed its 2022 annual report with the U.S. Securities and Exchange Commission (SEC). It includes its management discussion and analysis, annual information form, and audited financial statements for the year ended April 30, 2022.  (Panuco project, Sinaloa).
  • Riverside Resources Inc., and BHP extended its Exploration Funding Agreement (EFA) into a fourth year for its Sonora Mexico exploration program. The plan is to move into the next exploration phase focusing on five copper projects in Sonora, Mexico with a currently approved USD $1.1M in exploration funding to work on the Llano de Nogal district and USD $0.5M in ongoing High Value Work programs in the Sonora Projects for a total so far allocated budget of USD $1.6M exploration work on the specified properties in the EFA.
  • Galore Resources Inc., reported results of its annual general meeting of shareholders and announced the grant of 7.1M incentive stock options to directors and officers, exercisable at a price of $0.10 for a period of 5 years from the date of grant (Dos Santos project, Zacatecas).
  • Gatos Silver Inc., provided bi-weekly status report in accordance with National Policy 12-203 – Management Cease Trade Orders due to the delay in the filing of annual reports which includes its audited consolidated financial statements, together with the management’s discussion and analysis, relating to the audited annual financial statements, and the Chief Executive Officer and Chief Financial Officer certificates relating to its annual filings for the years 2021 and 2022 (Cerro Los Gatos, Chihuahua).

ON SOCIAL RESPONSIBILITY

  • Peñoles and Fresnillo plc have supported for more than two decades to the Heroic Fire Department and the Red Cross. The two companies have resolutely supported these institutions in the communities where they operate, by donating medical supplies to the Red Cross and training for firefighters.

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, Cu mineralization related to a porphyry copper system in a project in Sinaloa, Mexico.  Photo by Miguel A Heredia.

Mexico’s Best Drilling Intercepts, Second Week of September 2022

On what proved to be a busy week for press releases including drilling results from companies working in Mexico, the numbers coming from several projects are good. Reyna Gold’s 59 m intercept of 1.45 gpt Au is the best to come from orogenic style gold mineralization in some time. But the real takeaway from this week’s announcements is that the rest of good numbers (really good in the case of Kootenay’s Columba project) for silver, lead and zinc, is that all these intercepts come from mostly tightly structurally controlled low to intermediate sulfidation epithermal systems.

The Mining and Exploration News in Mexico: Highlights on the First Week of July, 2022

By Jorge Cirett

During the 27th week of the year (June 4th to July 10th, 2022), at least 26 press releases were announced by companies working in Mexico. To note, three companies posted exploration advances on their properties, one company poured its first gold and silver, one presented production results for the second quarter. Four companies reported on the opening or closing of financing rounds for a total of US$4.5 M and C$13.3 M, one company reported on a relevant investor share purchase. Five companies posted on work at its advanced properties, one company is to produce a PFS report and one other presented a NI 43-101 compliant report on reserves and resources of its recently acquired mine. One company informed on details of government resolutions on its mining concessions and an incoming indigenous consult.  One more company agreed with the Union representing its workforce on a profit-sharing scheme. The completion of the acquisition of a large silver property was announced.  ON MEXICO ISSUES, Mining companies on the BMV are resenting the lower prices on metals. ON EXPLORATION, in Sonora, Tocvan Ventures released surface sample results from El Picacho. In Chihuahua, Golden Minerals reported drilling results from nine holes at Yoquivo. In Zacatecas, Zacatecas Silver released drilling results at the El Cristo project, within its Zacatecas Silver concessions. ON MINING, SilverCrest Metals reported the first pour of gold and silver on its Las Chispas mine in Sonora. Endeavour Silver presented Q2 production results. ON FINANCING, Sonoro Gold closed its oversubscribed financing for $3 M. Silver Viper Minerals closed the final tranche of the private placement raising $306 K. Guanajuato Silver increased its private placement to C$13.3 M.  ON RESOURCES AND DEVELOPMENT, Zacatecas Silver is to prepare a PFS on its Esperanza project in Morelos. Bear Creek Mining filed a NI 43-101 compliant report on reserves and resources for its Mercedes mine in Sonora. GoGold Resources released results from drilling at El Favor deposit on its Los Ricos North project in Jalisco. Vizsla Silver reported drilling results from the San Antonio vein at the Panuco project in Sinaloa. Torex Gold released results from resource expansion and exploratory drilling in the broader Media Luna area in Guerrero. Mithril Resources released drilling results from El Refugio at its Copalquin project in Durango. ON DEALS AND CORPORATE ISSUES, Almaden Minerals has been notified its Ixtaca mining concessions in Puebla are “ineffective”, but the filing of applications made in conformity with the law. Newmont Corp. reached a profit-sharing agreement with the Union representing the workforce of its Peñasquito mine in Zacatecas. Endeavour Silver completed the acquisition of the Pitarrilla project in Durango.  ON SOCIAL RESPONSIBILITY, Almaden Resources will participate on a pilot program conducted by United Nations Expert Group Resource Management and the Economy Secretariat on sustainable development. Grupo Mexico continues to work on cultural development of mining communities.

ON MEXICO ISSUES

  • Mining companies on the Bolsa Mexicana de Valores (BMV) impacted by lower metal prices. From the start of the year to now, Industrias Peñoles shares have fallen 21.7%, Fresnillo 23.2%, Frisco 16.9% and Grupo Mexico 8.9%. During the year the year gold has depreciated 5.2%, silver 18.2% and copper 21.6%.

ON EXPLORATION

  • Tocvan Ventures Corp. released surface rock sample results from its El Picacho project in Sonora. A total of 65 samples were collected at the Murcielago prospect, of which 14 returned values over 0.1 gpt Au. Selected results from the sampling program comprise 7.19 gpt Au, 36 gpt Ag, 4.3% Pb; 4.52 gpt Au, 197 gpt Ag, 0.17% Cu; 4.8% Pb, 7.1% Zn; 3.25 gpt Au, 66 gpt Ag, 1.6% Pb; 2.71 gpt Au, 25 gpt Ag, 1.9% Zn; 2.71 gpt Au, 12 gpt Ag, 1.6% Pb, 1.3% Zn; 2.18 gpt Au, 15 gpt Ag, 1.3% Pb, 1.1% Zn; 1.50 gpt Au, 176 gpt Ag, 1.2% Zn. The samples are from a brecciated dolomitic limestone unit along a 450 m long trend with historic artisanal workings showing significant lead and zinc mineralization with gold and silver, in Jurassic sedimentary rocks.
  • Golden Minerals Co. reported results from the first nine holes on the third drill program at its Yoquivo project in Chihuahua. Highlighted true width results comprise 80.1 m @ 0.89 gpt Au, 64 gpt Ag (including 8.2 m @ 3.93 gpt Au, 120 gpt Ag; which includes 2.2 m @ 10.21 gpt Au, 139 gpt Ag); 0.4 m @ 30.80 gpt Au, 5,260 gpt Ag; 4.2 m @ 0.16 gpt Au, 229 gpt Ag; 1.7 m @ 0.13 gpt Au, 355 gpt Ag. “This most recent drilling has focused on testing the Pertenencia vein system to extend the known mineralized strike length into previously untested areas. The Pertenencia vein has continued to return strong gold-silver grades, and the vein remains open to depth and to the north”.
  • Zacatecas Silver Corp. released results from drilling at El Cristo project, on its Zacatecas Silver property in Zacatecas. Highlighted core length intervals comprise 9.53 m @ 167 gpt Ag; 1.45 m @ 11 gpt Ag, 0.18 gpt Au, 0.5% Pb, 1.6% Zn; 0.8 m @ 94 gpt Ag; 1.08 m @ 90 gpt Ag; 0.65 m @ 1.2 gpt Au, 565 gpt Ag, 1.3% Pb, 2.7% Zn; 1.2 m @ 134 gpt Ag, 0.1 gpt Au, 0.2% Zn; 4.36 m @ 48 gpt Ag, 0.19 gpt Au, 1.5% Pb, 2.7% Zn; 0.5 m @ 20 gpt Ag, 0.23 gpt Au, 1.0% Pb, 17.5% Zn. The epithermal intermediate sulfidation system at El Cristo crops out within a dilational zone that is at least 4 km long and up to 600 m wide.

ON MINING

  • SilverCrest Metals Inc. reported the first pour of silver and gold at Las Chispas mine, in Sonora. The plant commissioning is on track to reach its 1,250 tonnes per day capacity. “The plant started in late May 2022 and milled an estimated 12,700 tonnes of low-grade ore during June 2022”.
  • Endeavour Silver Corp. presented second quarter production results of 1.36 M Oz Ag, 9,289 Oz Au, or 2.1 M Oz AgEq. At Guanaceví, in Durango, 94 K tonnes were processed at 1,045 tonnes per day (tpd), grading 465 gpt Ag, 1.37 gpt Au, recovering 85.0% Ag, 88.9% Au, to produce 1.19 M Oz Ag, 3,680 Oz Ag. At Bolañitos, in Guanajuato, 107.3 K tonnes were processed at 1,193 tpd, averaging 54 gpt Ag, 1.77 gpt Au, recovering 88.6% Ag, 91.8% Au, to produce 165 K Oz Ag, 5,609 Oz Au. On other developments: Recent drilling has intercepted high-grade gold and silver at Guanceví; Drilling continued to intersect high-grade mineralization on the La Colorada structure at Parral, in Chihuahua; In the coming months the company expects to make a formal construction decision on La Terronera, in Jalisco.    

ON FINANCING

  • Sonoro Gold Corp. closed an oversubscribed non-brokered private placement for aggregate gross proceeds of $3 M (Cerro Caliche, Sonora).
  • Starcore International Mines Ltd. approved a non-brokered private placement in July 4, 2022, to raise up to $1.2 M in gross proceeds. On the next day Starcore reported the closing of the placement confirming $1.2 M in gross proceeds (El Creston, Sonora; San Martin, Queretaro).
  • Sonoro Gold Corp. informed that R. Stuart Angus reported the acquisition in June of $485 K in shares of Sonoro Gold, operation after which he owns 9.95 M shares and 8.35 M warrants of the corporation, representing 7.1% of the outstanding shares on a non-diluted basis and 12.4% on a partially diluted basis (Cerro Caliche, Sonora).
  • Silver Viper Minerals Corp. closed the final tranche of its non-brokered private placement for aggregate gross proceeds of $306 K (La Virginia, Sonora).
  • Guanajuato Silver Company Ltd. expanded the size of its previously announced brokered private placement to C$13.3 M with the option to increase the financing an additional 15%. (Topia, Durango; El Cubo, Guanajuato).

ON RESOURCES AND DEVELOPMENT

  • Zacatecas Silver Corp. announced the engagement of Palaris Ltd. to lead a pre-feasibility study (PFS) on the Esperanza project in Morelos.
  • Oroco Resource Corp. resumed drilling at its Santo Tomas project in Sinaloa. Operations started at the end of federal military operations in the area. “Core logging and assaying have continued during the period of drill stoppage, with an improvement in methods of handling and analysis, thereby better preparing the geological team for an increase in the rate of core processing”.
  • Bear Creek Mining Corp. filed a NI 43-100 compliant technical report on its Mercedes mine, in Sonora. The report provides a mineral reserves and resources estimate to December 31, 2021.
  • GoGold Resources Inc. released results from six holes from El Favor East deposit at its Los Ricos North project in Jalisco. Highlighted core length intercepts comprise 18.8 m @ 0.62 gpt Au, 156 gpt Ag (including 7.4 m @ 1.50 gpt Au, 344 gpt Ag); 11.4 m @ 0.37 gpt Au, 90 gpt Ag; 4.5 m @ 0.27 gpt Au, 76 gpt Ag; 2.8 m @ 0.36 gpt Au, 76 gpt Ag; 2.0 m @ 0.37 gpt Au, 127 gpt Ag; 1.8 m @ 0.24 gpt Au, 138 gpt Ag; 2.2 m @ 0.80 gpt Au, 227 gpt Ag; 9.3 m @ 0.64 gpt Au, 155 gpt Ag (including 0.7 m @ 5.23 gpt Au, 1,196 gpt Ag); 0.7 m @ 4.34 gpt Au, 1,295 gpt Ag.
  • Vizsla Silver Corp. reported results from seven holes on the San Antonio vein of the Cordon de Oro corridor at its Panuco project in Sinaloa. Highlighted true width intercepts comprise 6.40 m @ 5.76 gpt Au, 621 gpt Ag (including 0.57 m @ 34.2 gpt Au, 2,940 gpt Ag); 6.0 m @ 0.37 gpt Au, 124 gpt Ag; 4.89 m @ 0.60 gpt Au, 122 gpt Ag; 7.50 m @ 1.15 gpt Au, 213 gpt Ag; 3.15 m @ 2.29 gpt Au, 549 gpt Ag; 4.20 m @ 1.19 gpt Au, 202 gpt Ag; 2.0 m @ 4.75 gpt Au, 355 gpt Ag; 2.01 m @ 1.29 gpt Au, 226 gpt Ag.
  • Torex Gold Resources Inc. released results from resource expansion and exploratory drilling completed in the broader Media Luna area in Guerrero. The work extends mineralization to the south and west of the EPO deposit and identified a potential new zone of mineralization between the Media Luna deposit and the Media Luna West target. Highlighted true width results comprise 9.73 m @ 8.51 gpt Au, 33 gpt Ag, 1.57% Cu; 17.25 m @ 4.18 gpt Au, 25 gpt Ag 1.74% Cu; 35.63 m @ 2.05 gpt Au, 30 gpt Ag, 1.05% Cu; 16.48 m @ 8.70 gpt Au, 4 gpt Ag, 0.54% Cu; 6.31 m @ 4.00 gpt Au, 19 gpt Ag, 0.78% Cu; 5.10 m @ 2.79 gpt Au, 9 gpt Ag, 0.27% Cu. Infill, step-out, exploration, ore control and definition drilling budgeted includes $19 M at Media Luna, $6 M at ELG Underground, $9 M in near mine and regional and $5 M in definition and grade control in the ELG open pit and underground. “The Media Luna deposit is hosted within the Mesozoic carbonate-rich Morelos Platform, which has been intruded by Paleocene stocks, sills, and dykes of granodioritic to tonalitic composition. Skarn-hosted gold-silver-copper mineralization is developed within the sedimentary rocks along the contacts of intrusive rocks as well as within altered dykes of the skarn envelope….Mineralization at Media Luna is hosted in skarn that developed at the contact of the intrusive granodiorite and overlying sedimentary rocks. The skarn is characterized by a mineral assemblage of pyroxene, garnet, and magnetite. Metal deposition and sulfidation occurred during retrograde alteration and is associated with a mineral assemblage comprising amphibole, phlogopite, chlorite, and calcite ± quartz ± epidote as well as variable amounts of magnetite and sulfides, primarily pyrrhotite. Additional mineralization is associated with skarn developed within and along dykes and sills above the main granodiorite intrusion”.
  • Mithril Resources Ltd. released drilling results from deep drilling at El Refugio, at its Copalquin project in Durango. Highlighted core length results comprise 5.67 m @ 4.37 gpt Au, 174 gpt Ag (including 1.67 m @ 9.64 gpt Au, 399 gpt Ag); 1.0 m @ 1.68 gpt Au, 67 gpt Ag; 1.0 m @ 1.27 gpt Au, 46 gpt Ag; 0.50 m @ 2.13 gpt Au, 118 gpt Ag; 0.90 m @ 1.04 gpt Au, 11 gpt Ag.

ON DEALS AND CORPORATE ISSUES

  • Almaden Minerals Ltd. informed the Ministry of Economy has officially notified Almaden that the company’s mining concessions titles relating to the Ixtaca project in Puebla are “ineffective”, but that the title applications were filed in conformity with the law. This is understood to mean that “the mineral title has reverted to application status, and that these applications preserve the mineral rights for Almaden but do not allow the Company to engage in exploration, until such time as Economia completes its court-ordered indigenous consultation in the area covered by the mineral title applications”. Almaden also announced that the environmental permit application will be submitted once the Human Rights Impact Assessment (HRIA) and the indigenous consultation process are finalized.
  • Newmont Corp. announced it has reached a profit-sharing agreement with the Union at its Peñasquito mine in Zacatecas. Newmont will pay its unionized workforce an uncapped profit-sharing bonus up to 10%, “with an immediate cost equivalent of $70 million, which is representative of the payments related to 2021 results”.
  • Endeavour Silver Corp. announced the completion of its acquisition of the Pitarrilla project in Durango. The deal involved the bought of $70 M in shares from Silver Standard Ventures Inc. subsidiary (SSR Durango S.A. de C.V.) and a further 1.25% NSR on Pitarrilla. Endeavour plans to invest $1.8 M for drilling and exploration to verify the historical data and define a current resource in 2022.

ON SOCIAL RESPONSIBILITY

  • Almaden Minerals Ltd. reported the Ixtaca project in Puebla was selected to be included in a pilot project conducted by the United Nations Expert Group Resource Management (UNRMS) in coordination with Mexico’s Ministry of Economy (Secretaría de Economía). The UNRMS “considers a range of socio-economic, technological, and knowledge factors that are important for the sustainable development of each project”.
  • Grupo Mexico continues with its support for cultural development of the mining communities. This week the Orchestras and Choruses from Buenavista and La Caridad made a presentation in Hermosillo, Sonora, along with other cultural institutions and organizations, under the event “El Cobre Hecho Arte”.

On the image below: Weathered monzonite porphyry on a project in the Sonoran Desert. Picture by Jorge Cirett.