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

By Jorge Cirett

During the 23rd week of the year (June 7th to June 13th, 2021), at least 25 press releases were announced by companies working in Mexico. To note, six companies posted exploration advances on their properties, three posted on financing ($2.6M, $1.43 M, C$11.5 M) and one on a debt settlement with shares, six more on project development or resource definition and three posted on deals or corporate issues. ON MEXICO ISSUES, The bodies of seven miners killed on a coal mine collapse in Coahuila have been recovered. ON EXPLORATION, in Baja, Comet Resources commenced a drill program at Santa Teresa. In Sonora, Minaurum is re-commencing drilling at its Alamos Silver project; Silver Spruce commenced phase II ground exploration at Jackie; Tarachi Gold released RC drilling results from La Dura mine at its Tarachi project. Radius gold released ground exploration results from Maricela. In Sinaloa, Kootenay Silver released good drilling results at Copalito.  ON MINING, no relevant news. ON FINANCING, Santacruz Silver settled a C$4.5 M debt by issuing shares to debtors. Three companies informed on financing rounds: Silver Viper Minerals ($1.4 M, aggregate $6 M), Mammoth Resources ($2.6 M) and Defiance Silver (C$11.5 M). ON RESOURCES AND DEVELOPMENT, GR Silver Mining reported drill results from Plomosas, in Sinaloa. Endeavour Silver released high-grade intercepts at Terronera, Jalisco. Advance Gold released (low) lithium drilling results from the Saldivar Salar in San Luis Potosi. GoGold Resources reported drilling results from Los Ricos North in Jalisco. Golden Tag Resources released drilling results from a bulk tonnage target at San Diego, Durango. Golden Minerals reported assay results from expansion drilling at Rodeo, Durango.  ON DEALS AND CORPORATE ISSUES, Millrock Resources and Tocvan Ventures signed a letter of commitment in relation to El Picacho project in Sonora. Telson Mining completed its change name to Altaley Mining. VanGold Mining announced its name change to Guanajuato Mining. ON SOCIAL RESPONSIBILITY, Peñoles and Fresnillo PLC informed on actions the companies realize to help the environment. Mazapil inhabitants evaluated the water quality they receive with Minera Peñasquito support.

ON MEXICO ISSUES

  • The bodies of six of seven miners have been recovered after the collapse of a coal mine in Coahuila.
  • Luisa María Alcalde, head of the Secretariat of Work and Social Prevision informed the mine collapse in Coahuila that caused several fatalities was due to strong rains in the region.

ON EXPLORATION

  • Kootenay Silver Inc. released results from five holes at its Copalito project in Sinaloa. The holes are from the 5 Señores vein, which has now been tested on 600 m of its 1 km known extension. Highlighted core length results comprise 35 m @ 75 gpt Ag, 0.6 gpt Au, 0.1% Pb+Zn (126 gpt AgEq) which include 1.70 m @ 43 gpt Ag, 2.56 gpt Au, 0.8% Pb+Zn (218 gpt Ag) and 1.31 m @ 264 gpt Ag, 0.23 gpt Au, 2.3% Pb+Zn (326 gpt AgEq); 19.43 m @ 218 gpt Ag, 0.83 gpt Au, 1.5% Pb+Zn (306 gpt AgEq) including 7.97 m @ 330 gpt Ag, 1.23 gpt Au, 2.0% Pb+Zn (456 gpt AgEq); 15.0 m @ 61 gpt Ag, 0.75 gpt Au, 0.4% Pb+Zn (119 gpt Ag) including 2.0 m @ 220 gpt Ag, 3.79 gpt Au, 0.4% Pb+Zn (475 gpt AgEq); 12.0 m @ 66 gpt Ag, 0.17 gpt Au, 0.8% Pb+Zn (96 gpt AgEq) including 2.20 m @ 241 gpt Ag, 0.42 gpt Au, 0.8% Pb+Zn (289 gpt AgEq); 10.0 m @ 65 gpt Ag, 0.11 gpt Au, 0.3% Pb+Zn (79 gpt AgEq) including 1.68 m @ 210 gpt Ag, 0.45 gpt Au, 0.4% Pb+Zn (248 gpt AgEq).
  • Minaurum Gold Inc. informed on rig mobilization to its Alamos silver property in Sonora. “Drilling will focus on defining emerging silver shoots in previously explored veins as well as discovering new shoots in underexplored veins. Drill targets will be 100- to 150-metre step-outs of, up- and down-dip, and along-strike of mineralized vein zones, with allowances made for plunging shoots. Minaurum is also continuing reconnaissance work to the south and west in the Alamos project to develop new target veins for later drilling”. Some of the zones to be tested include the Europa-Guadalupe, San José, Minas Nuevas, Alessandra, Ana, Promontorio, Púlpito and Cotera.
  • Comet Resources Ltd. Commenced a 2,000 m diamond drilling program at Santa Teresa, in Baja California. This is the first drilling program since Premier Gold tested the property in 2008.
  • Radius Gold Inc. defined high grade and bulk tonnage targets at its Maricela project in Sonora. Rock chip sampling returned up to 3 m @ 4.46 gpt Au, 1,335 gpt Ag; 22.0 m @ 0.15 gpt Au, 39 gpt Ag; 4 m @ 1.23 gpt Au, 111 gpt Ag at Baby Gloria, 25.3 m @0.31 gpt Au, 62 gpt Ag; 10 m @ 0.62 gpt Au, 142 gpt Ag at Virgen de Plata, 4 m @ 0.45 gpt Au, 98 gpt Ag; 10.5 m @ 0.50 gpt Au, 105 gpt Ag at EL Arco; 6 m @ 1.03 gpt Au, 417 gpt Ag at Central. “The project hosts an epithermal silver & gold mineralized vein system extending approximately 1.5km long by 300m wide, within which occurs multiple veins, stockworks and breccias which at intersections have exposed widths +25 meters. Recent mapping and sampling (273 rock chips) identified 6 major veins with combined strike approximately of 5km”.
  • Silver Spruce Resources Inc. commenced phase II ground exploration at the 1,130 ha Jackie property in Sonora. “The work will be performed on a 100-hectare section of the Property with grid-controlled detailed geological mapping and rock sampling focused on a 25-hectare central block covering the core of the gold and silver discovery area with additional wider spaced grid mapping of the surrounding area”.
  • Tarachi Gold Corp. released results from surface reverse circulation holes drilled on La Dura mine within the Jabali concession at the Tarachi project in Sonora. Highlighted hole-length intervals comprise 3.0 m @ 0.63 gpt Au, 9.0 m @ 0.22 gpt Au, 3.0 m @ 0.37 gpt Au, 3.0 m @ 2.35 gpt Au; 1.50 m @ 1.56 GPT Au; 12.0 m @ 7.26 gpt Au (including 6.0 m @ 12.2 gpt Au); 3.0 m @ 1.68 gpt Au, 12.0 m @ 0.23 gpt Au. “The drill program tested the down-dip and potential southern plunge in areas of known gold bearing structures”. 

ON MINING

  • No relevant news.

ON FINANCING

  • Santacruz Silver Mining Ltd. announced the settling of a debt of C$4.47 M by issuing 10.3 M shares to Empresa Minera Manquiri S.A. and Minas Guilloyna S.A. de C.V. (Zimapan, Hidalgo).
  • Mammoth Resources Corp. closed its previously announced oversubscribed non-brokered private placement financing to raise up to $2.6 M in gross proceeds (Tenoriba, Chihuahua).
  • Silver Viper Minerals Corp. closed the final tranche of its non-brokered private placement for aggregate proceeds of $1.43 M. Aggregate profits under the offering were $6 M (La Virginia, Sonora).
  • Defiance Silver Corp. closed the previously announced brokered private placement for Gross proceeds of C$11.5 M (San Acacio, Zacatecas; Tepal, Michoacan).

ON RESOURCES AND DEVELOPMENT

  • GR Silver Mining Ltd. reported drill results from the Plomosas project in Sinaloa. Highlighted true width (TW) intercepts on the northern portion of the Plomosas mine area of polymetallic hydrothermal breccia comprise 16.2 m @ 75 gpt Ag, 0.25 Au, 0.7% Pb, 0.8% Zn, 0.1% Cu (including 5.8 m @ 171 gpt Ag, 0.41 gpt Au, 1.1% Pb, 0.7% Zn, 0.2% Cu); 7.6 m @ 227 gpt Ag, 0.27 gpt Au, 1.7% Pb, 1.4% Zn, 0.1% Cu; 10.7 m @ 12 gpt Ag, 2.48 gpt Au, 1.1% Pb, 1.5% Zn (including 1.5 m @ 17 gpt Ag, 15.81 gpt Au, 1.1% Pb, 3.9% Zn); 3.6 m @ 100 gpt Ag, 0.14 gpt Au, 0.2% Pb, 1.1% Zn, 0.5% Cu; 21.0 m @ 25 gpt Ag, 0.67 gpt Au, 1.6% Pb, 2.4% Zn, 0.1% Cu).
  • Endeavour Silver Corp. announced high-grade intercepts in a number of structures near the Terronera vein at Terronera, Jalisco. True width intercepts comprise 1.12 m @ 0.32 gpt Au, 170 gpt Ag; 2.14 m @ 3.97 gpt Au, 73 gpt Ag; 5.59 m @ 2.17 gpt Au, 177 gpt Ag; 1.35 m @ 9.78 gpt Au, 214 gpt Ag at San Simón, 1.41 m @ 2.20 gpt Au, 54 gpt Ag; 2.88 m @ 6.05 gpt Au, 1,056 gpt Ag; 1.98 m @ 3.38 gpt Au, 347 gpt Ag; 1.39 m @ 2.04 gpt Au, 66 gpt Ag at Fresno, 1.08 m @ 2.63 gpt Au, 25 gpt Ag at Lindero, 1.08 m @ 1.09 gpt Au, 445 gpt Ag at Pendencia, and 1.95 m @ 9.52 gpt Au, 148 gpt Ag; 1.07 m @ 2.81 gpt Au, 54 gpt Ag at Los Cuates.
  • Advance Gold Corp. announced results from four core holes at its Saldivar Salar in San Luis Potosí. One hole averaged 84 m @ 136 ppm Li (232 ppm peak value), 225 ppm B, 1.3 % K; a second hole averaged 77 m @ 142 ppm Li (229 ppm peak value), 213 ppm B, 1.3% K; a third hole averaged 53 m @ 130 ppm Li (214 ppm peak value), 230 ppm B, 1.2% K; a fourth hole returned 50 m @ 137 ppm Li (231 ppm peak value), 226 ppm B, 1.4% K. 
  • GoGold Resources Inc. released results from drilling on El Orito prospect at it Los Ricos North project in Jalisco. Highlighted core length intersections comprise 9.5 m @ 20 gpt Ag, 0.03 gpt Au, 0.10% Cu, 0.3% Pb, 0.7% Zn; 12.4 m @ 38 gpt Ag, 0.08 gpt Au, 0.23% Cu, 2.1% Pb, 3.8% Zn (including 2.6 m @ 93 gpt Ag, 0.09 gpt Au, 0.61% Cu, 5.3% Pb, 9.9% Zn); 3.0 m @ 222 gpt Ag, 1.93 gpt Au, 0.29% Cu, 2.7% Pb, 0.1% Zn; 44.3 m @ 23 gpt Ag, 0.04 gpt Au, 0.08% Cu, 0.7% Pb, 1.2% Zn (including 4.9 m @ 44 gpt Ag, 0.16 gpt Au, 0.16% Cu, 2.5% Pb, 3.5% Zn); 26.6 m @ 14 gpt Ag, 0.04 gpt Au, 0.07% Cu, 1.1% Pb, 1.3% Zn (including 5.1 m @ 38 gpt Ag, 0.17 gpt Au, 0.20% Cu, 4.5% Pb, 1.9% Zn); 29.4 m @ 36 gpt Ag, 0.06 gpt Au, 0.23% Cu, 2.2% Pb, 4.1% Zn; (including 6.3 m @ 90 gpt Ag, 0.09 gpt Au, 0.65% Cu, 5.2% Pb, 9.5% Zn); 23.0 m @ 61 gpt Ag, 0.08 gpt Au, 0.40% Cu, 2.4% Pb, 4.9% Zn; 58.0 m @ 31 gpt Ag, 0.04 gpt Au, 0.19% Cu, 1.2% Pb, 2.6% Zn. “mineralization averaging approximately 30m in width for more than 700m in strike length and up to approximately 300m in vertical depth from surface and is open in all directions….. The known strike length of the El Orito – El Favor structure is now approaching 2,500 meters and is still open in both directions”.
  • Golden Tag Resources Ltd. released results from a diamond hole at the Trovador zone of its San Diego project in Durango. Highlighted results comprise 8.40 m @ 0.58 gpt Au, 30 gpt Ag, 0.3% Pb, 0.4% Zn, 0.09% Cu; 86.64 m @ 0.03 gpt Au, 39 gpt Ag, 0.9% Pb, 0.6% Zn; 169.83 m @ 0.04 gpt Au, 32 gpt Ag, 0.6% Pb, 0.8% Zn, 0.05% Cu (including 14.47 m @ 0.03 gpt Au, 81 gpt Ag, 1.9% Pb, 2.2% Zn, 0.12% Cu); 116.45 m @ 0.03 gpt Au, 42 gpt Ag, 0.6% Pb, 0.7% Zn; 2.71 m @ 0.05 gpt Au, 97 gpt Ag, 0.5% Pb, 3.1% Zn, 0.35% Cu.
  • Golden Minerals Co. released initial results from its expansion drill program at its Rodeo open pit mine in Durango. Highlighted results comprise 14.65 m @ 3.94 gpt Au, 8 gpt Ag; 9.30 m @ 5.38 gpt Au, 10 gpt Ag; 3.70 m @ 7.02 gpt Au, 21 gpt Ag (including 0.90 m @ 21.09 gpt Au, 50 gpt Ag); 13.75 m @ 2.64 gpt Au, 10 gpt Ag, 6.35 m @ 1.41 gpt Au, 36 gpt Ag; 3.80 m @ 2.69 gpt Au, 26 gpt Ag.
  • GR Silver Mining Ltd. reported drill results from high-grade epithermal veining from La Colorada and San Juan veins at Plomosas, Sinaloa. Highlighted core length intervals comprise 9.0 m @ 710 gpt Ag, 1.82 gpt Au, 1.1% Pb, 0.3% Zn, 0.1% Cu (including 0.7 m @ 8,519 gpt Ag, 18.77 gpt Au, 8.9% Pb, 0.7% Zn, 0.2% Cu); 33.0 m @ 20 gpt Ag, 0.11 gpt Au, 0.5% Pb, 0.3% Zn; 11.1 m @ 139 gpt Ag, 0.69 gpt Au, 0.1% Pb, 0.2% Zn; 7.0 m @ 341 gpt Ag, 1.00 gpt Au, 0.2% Pb, p.6% Zn; 2.1 m @ 480 gpt Ag, 0.05 gpt Au, 0.2% Pb, 0.2% Zn. “The La Colorada vein is a hydrothermal breccia that contains Au-Ag-Pb-Zn values in a mineralized quartz and hematite matrix. It is hosted in andesite and ignimbrite country rock. Sphalerite, galena and acanthite (Ag-bearing mineral) are found in the quartz veins.”.

ON DEALS AND CORPORATE ISSUES

  • Millrock Resources Inc. signed a letter of commitment with Tocvan Ventures Corp. in relation to 2,414 ha El Picacho gold project in Sonora, west of the San Francisco mine. Tocvan must make make cash payments of US$2 M to the underlying concession owners over a five-year term to acquire 100% interest in the project, pay back taxes and Millrock is to retain a 2% NSR, of Which Tocvan may purchase back 1% for US$1 M.
  • Telson Mining Corp. is completing its name change to Altaley Mining Corp. on June 11, 2021 (Campo Morado, Guerrero).
  • VanGold Mining Corp. announced the name change to Guanajuato Mining Corp. to be effective from June 10, 2021 (El Cubo and El Pinguico, Guanajuato).

ON SOCIAL RESPONSIBILITY

  • Peñoles and Fresnillo PLC informed on actions the companies realize to help the environment.
  • Mesas Mazapil inhabitants informed on the supervision they do on the water source delivered by Minera Peñasquito.

On the image below:  Felsic volcanic rocks autobreccia with hematite rich matrix in Sinaloa. Picture by Jorge Cirett.

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

Quartz Blade Texture

By Miguel A Heredia

During the 22nd week of the year (May 31st to June 06th, 2021), at least 24 press releases were announced by companies working in Mexico and 1 news published by the media, with six disclosing deals and corporate issues, six announcing financial rounds, five informing on exploration results, four reporting on resources and developments, three discussing social issues, and one communicating production and financial results.  ON MEXICO ISSUES, No relevant news.  ON EXPLORATION, In Sonora, Benjamin Hill Mining released additional sampling results from its Benjamin Hill property, Silver Spruce and its JV partner Colibri commenced the phase 1 exploration drilling at its Mezquite project, and Heliostar presented results from its mapping and sampling program at its Oso Negro project. In Zacatecas, Zacatecas Silver completed the geological mapping and sampling program of the San Manuel Vein System. ON MINING, Santacruz reported Q1, 2021 production and financial results from their Zimapan and Rosario mines in Hidalgo and San Luis Potosi States respectively. ON FINANCING, Alamos Gold declared quarterly dividend of USD $0.025 per common share (Mulatos mine, Sonora). Chesapeake reported that it granted 73,500 incentive stock options at an exercise price of $4.37 per share (Metates project, Durango). Colibri announced that its previously announced private placement has been oversubscribed for an additional 399,139 units at $.10 per unit (El Pilar project, Sonora). Silver Viper closed the first tranche of a $6M private placement for gross proceeds of $4.57M (La Virginia project, Sonora).  VanGold signed a definitive agreement to obtain a non-dilutive USD $7.5M in the form of a silver and gold loan (El Cubo mine, Guanajuato). Vizsla closed a bought deal financing offering for gross proceeds of CAD $69M (Panuco project, Sinaloa). ON RESOURCES AND DEVELOPMENT, Barksdale outlined a 5,000m drilling program at its San Javier project in Sonora. GoGold released results from six holes collared at its Los Ricos North project in Jalisco. Oroco presented results from the 3D IP survey conducted at its Santo Tomas project in Sinaloa. Sonoro completed the nine final RC holes at its Cerro Caliche project in Sonora and moves towards an updated technical report and new PEA. ON DEALS AND CORPORATE ISSUES, Capstone announced the resignation of a member of its Board of Directors (Cozamine mine, Zacatecas). VanGold announced that it will change its name to Guanajuato Silver Company, Ltd. (El Cubo mine, Guanajuato). Gatos Silver announced the appointment of its President and CEO, effective June 1, 2021 (Los Gatos mine, Chihuahua). Great Panther appointed its new CFO and COO (Topia mine, Durango). First Majestic released results from its annual general meeting of shareholders (San Dimas property, Durango).  Fortuna Silver provided an update of the legal dispute against the Mexican Geological Survey (SGM) if the royalty in one of its claims at San Jose mine in Oaxaca is not paid.  ON SOCIAL RESPONSIBILITY, Minera Alamos released its 2020 Environmental, Social, and Corporate Governance (ESG) Report (Mulatos mine, Sonora).  Grupo México delivered seed capital for productive and social projects in the community of Sombrerete, Zacatecas. Newmont Corporation launched its 2020 Annual Sustainability Report.

ON MEXICO ISSUES

  • No relevant news.

ON EXPLORATION

  • Benjamin Hill Mining Corp., released additional assays from 45 samples collected at the new La Salada East Area within its Benjamin Hill property in Sonora. Chip samples returned multiple results ranging from 1 g/t Au to 3.8 g/t Au with peaks of 10 g/t Au and 10.1 g/t Au. Gold values are associated with quartz veining and quartz breccias often with chalcopyrite, galena and hematite, limonite and “boxwork” pyrite. These results extend the known gold mineralization previously reported. The company also announced that it is finalizing drill program planning to test the most prospective targets generated to date and expects to receive drill permits in early June.
  • Silver Spruce Resources Inc., and its JV partner Colibri Resource Corporation commenced the 2,000m phase 1 exploration RC drilling at its Mezquite project in Sonora. Six holes are planned to drill test an area of 400m by 600m with elevated values to 3.41 g/t Au and 387 g/t Ag.
  • Heliostar Metals Limited presented results from its mapping and sampling program at its Oso Negro project in Sonora. High grade channel samples defined drill targets at the Prospecto Vein zone including 5.14 g/t Au, 953 g/t Ag, 1% Pb, and 1.9% Zn (1,428 g/t AgEq) over 1.2m; 2.55 g/t Au, 346 g/t Ag, 0.4% Pb, and 1.2% Zn (588 g/t AgEq) over 1.8m; and 3.29 g/t Au, 89 g/t Ag, 0.2% Pb, and 0.6% Zn (362 g/t AgEq) over 2.4m. This target has a length of 360m of strike, and has a weighted average grade of 420 g/t AgEq over and average width of 1.3m. Heliostar also announced the stacking of a new claim, Angel de Plata 2, increasing its land position to 120 square kilometers. Two new vein corridors have been discovered on the new claim with mine dump samples from historic workings up to 1,810 g/t AgEq.
  • Zacatecas Silver Corp., completed the first pass of its geological mapping and sampling program on the San Manuel Vein System. The company defined eight sets of oxidized, silver-base metal mineralized veins for over at least 3 km in length, with a dilation zone that is at least 600m wide. This extensional zone represents robust drill targets. The company has already commenced an environmental study at San Gill-San Manuel, concurrent with planning of first phase drilling at this target, which should be completed within 4 weeks.

ON MINING

  • Santacruz Silver Mining Ltd., Santacruz reported Q1, 2021 production and financial results from their Zimapan and Rosario mines in Hidalgo and San Luis Potosi states respectively.  At Zimapan, Hidalgo, the company processed 156, 433 tonnes to produce 646K Oz AgEq at cash and AISC of USD $19.91 and USD $27.19 per Oz AgEq respectively. At Rosario, San Luis Potosi, Santacruz processed 19,806 tonnes to produce 60.9K Oz AgEq at cash and AISC of USD $27.19 and USD $52.57 respectively. The company reported consolidated revenues of USD $11.1M, gross profit of USD $2.2M, EBITDA of USD $983K, and cash and marketable securities of USD $6.8M (Zimapan and Rosario mines in Hidalgo and San Luis Potosi respectively).

ON FINANCING

  • Alamos Gold Inc., declared quarterly dividend of USD $0.025 per common share. The company also implemented a dividend reinvestment plan. It gives the shareholders the option of increasing their investment by electing to receive common shares instead of cash dividend at a 3% discount to the prevailing market price (Mulatos mine, Sonora).
  • Chesapeake Gold Corp., reported that it granted 73,500 incentive stock options at an exercise price of $4.37 per share. The Options will vest and be exercisable on the basis of 25% annually, commencing May 31, 2022, the first anniversary of the date of the grant. (Metates project, Durango).
  • Colibri Resource Corporation announced that its previously announced private placement of 23,482,000 units has been oversubscribed for an additional 399,139 units at $.10 per unit with each unit consisting of one common share and one common share purchase warrant exercisable at $0.15 for one common share for a period of twenty-four months from the date of issue. (El Pilar project, Sonora).
  • Silver Viper Minerals Corp., closed the first tranche of a $6M private placement for gross proceeds of $4.57M (La Virginia project, Sonora).  The Company intends to use the net proceeds from the Offering for working capital requirements and other general corporate purposes.
  • VanGold Mining Corp., signed a definitive agreement to obtain a non-dilutive USD $7.5M in the form of a silver and gold loan. The company estimates that the amount of gold and silver required to repay this loan facility will represent approximately 25% of the projected gold and silver to be produced by VanGold from its operations at the El Cubo mill in Guanajuato during the 12-month repayment period of the loan.
  • Vizsla Silver Corp., closed a bought deal financing offering for gross proceeds of CAD $69M. The net proceeds of the Public Offering will be used to advance the exploration and development of the Company’s Panuco project, to make option payments and pursue potential future acquisitions, as well as for working capital and general corporate purposes.

ON RESOURCES AND DEVELOPMENT

  • Barksdale Resources Corp., outlined a 5,000m drilling program at its San Javier project in Sonora. The plan is to start drilling in July 2021 at the Cerro Verde area to confirm near surface copper oxide and gold mineralization up to 200m and test structures believed to control higher grade mineralization.  Cerro Verde has historic indicated + inferred resources for 86M tonnes of 0.33% Cu for a total of 630M Lb Cu. The company also plans to run metallurgical tests to better understand the potential processing routes for both copper and gold mineralization.
  • GoGold Resources Inc., released results from six holes collared at its Los Ricos North project in Jalisco. The most significant results was encountered in hole LRGF-21-041 with 0.38 g/t Au and 84 g/t Ag (1.5 g/t AuEq or 113 g/t AgEq) over 1.7m, plus 0.31 g/t Au and 82 g/t Ag (1.41 g/t AuEq or 105 g/t AgEq) over 56.1m, including 3.57 g/t Au and 975 g/t Ag (16.57 g/t AuEq or 1,243 g/t AgEq) over 1.3m, plus 0.19 g/ Au and 90 g/t Ag (1.39 g/t AuEq or 104 g/t AgEq) over 2.3m.
  • Oroco Resource Corporation presented results from the 3D IP survey conducted at its Santo Tomas project in Sinaloa. The 3D IP results show a good correlation of chargeability and resistivity features with known mineralization and alteration zones in the area of historical drilling and resource delineation. “Final survey data displays a very extensive distribution of chargeability / resistivity features beyond the confines of the historical work at Santo Tomas”. 
  • Sonoro Gold Corp., completed the nine final RC holes at its Cerro Caliche project in Sonora and moves towards an updated technical report and new PEA. The most significant drill intersections were encountered in hole SCR-262 collared at Buena Suerte Area with 0.37 g/t Au and 0.6 g/t Ag (0.38 g/t AuEq) over 21.33m, and ole SCR-264 also collared at Buena Suerte area with 0.29 g/t Au and 12 g/t Ag (0.47 g/t AuEq) over 21.34m, including 1.59 g/t Au and 135 g/t Ag (3.52 g/t AuEq) over 1.53, plus 0.76 g/t Au and 7 g/t Ag (0.87 g/t AuEq) over 15.24m, including 2.4 g/t Au and 2 g/t Ag (2.43 g/t AuEq) over 1.52m. These results indicated a coalescence of the Buena Suerte and Los Japoneses areas into a single orebody of shallow, oxide gold mineralization. Sonoro expects two independent 43-101 compliant reports to update the resource size and classification and determine whether it is sufficient to support the Company’s proposed heap leach mining operation with a conceptual operation of up to 15,000 tonnes per day.

ON DEALS AND CORPORATE ISSUES

  • Capstone Mining Corp., announced the resignation of a member from its Board of Directors (Cozamine mine, Zacatecas).
  • VanGold Mining Corp., announced that it will change its name to Guanajuato Silver Company, Ltd., for which it has reserved the stock symbol GSVR with the TSX Venture Exchange (El Cubo mine, Guanajuato).
  • Gatos Silver Inc., announced the appointment of its President and CEO. He will assume its role, effective June 1, 2021 (Los Gatos mine, Chihuahua).
  • Great Panther Mining Limited, appointed its new CFO and COO, effective June 30, 2021 (Topia mine, Durango).
  • First Majestic Silver Corp., released results from its annual general meeting of shareholders (San Dimas property, Durango). 
  • Fortuna Silver Mines Inc., provided an update of the legal dispute against the Mexican Geological Survey (SGM) if the royalty in one of its claims at San Jose mine in Oaxaca is not paid. Effective May 27, 2021, the General Direction of Mines (DGM) provided notice to the Company of the termination of the cancellation procedure, as it has determined that the required cause for cancellation of the concession was not established.   As a result, the Company has discontinued the Amparo Proceedings in the Collegiate Court in Mexico. In light of these constructive developments, the Company is now engaged in goodwill discussions with the SGM to reach an agreement to the satisfaction of both parties with respect to the royalty claim.

ON SOCIAL RESPONSIBILITY

  • Alamos Gold Inc., released its 2020 Environmental, Social, and Corporate Governance (ESG) Report. It outlines the company’s progress on its ESG performance in 2020 across its operations, projects and offices, and provides direction on planned initiatives for 2021 (Mulatos mine, Sonora). 
  • Grupo México delivered seed capital for productive and social projects in the community of Sombrerete, Zacatecas, which contribute to promoting development and building a more competitive community. This project that has been carried out since 2009 has approved more than 600 projects. On this occasion, seven new projects were approved whose support is MXP $1M, which is distributed among the projects, according to the scope presented by each one.
  • Newmont Corporation launched its 2020 Annual Sustainability Report. This is part of the suite of reports on the Company’s environmental, social and governance (ESG) practices in key areas that include health, safety and security, human rights, the environment, social acceptance, governance, and inclusion and diversity.

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 blade texture in a hot spring and epithermal vein system in a project in Hidalgo, Mexico.  Photo by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the Fourth Week of May, 2021

By Jorge Cirett

During the 21st week of the year (May 24th to May 30th, 2021), at least 33 press releases were announced by companies working in Mexico. To note, seven companies posted exploration advances on their properties, three presented mining related news, seven posted on financing (C$6M, $60 M, C$5 M, C$10 M, $2.6 M, $C$11.5 M) and one on share distribution, six more on project development or resource definition and two posted on corporate issues. ON MEXICO ISSUES, CanCham complained on the lack of clear policies and opacity on the rule of law that are affecting Canadian investments in Mexico.  The push from the Mexican government to create an institution to manage the lithium industry from the optics of sovereignty sees opposition from the mining industry, and reality. Camimex released a list of mining investments to be realized in the next few years, amounting to several billion dollars. ON EXPLORATION, in Sonora, Ridgestone Mining applied for drilling permits at Rebeico. Tocvan Ventures released results from drilling at Pilar. In Chihuahua, Kootenay Silver released high-grade results from drilling at Columba. In Durango, Mithril Resources, updated on drilling at Copalquin. In Sinaloa, Riverside Resources released surface sample results; Vizsla Silver informed on geophysical results supported by drilling, and more surveys to come; Brigadier Gold discovered bulk tonnage copper mineralization in trenching of soil anomalies. ON MINING, Impact Silver and Telson Mining presented Q1 2021 results. Magna Gold informed it has exceeded 3 M man-hours of work without lost-time incidents. ON FINANCING, Silver Bull Resources is to distribute 34.2 M shares of Arras Minerals among its shareholders. Six companies informed on financing rounds: Silver Viper Minerals (C$6 M), Vizsla Silver ($60 M), Reyna Silver (C$5 M), Sable Resources (C$10M, Defiance Silver (C$11.5 M) and Mammoth Resources ($2.58 M). ON RESOURCES AND DEVELOPMENT, Prime Mining released drilling results from Los Reyes. GR Silver Mining reported near surface drill results from Plomosas. GoGold Resources released drilling results from the Casados deposit at Los Ricos North. Discovery Silver released results from 12 drill holes targeting high-grade vein trends at Cordero. Sailfish Royalty filed a technical report with a new resource estimate for Gavilanes. Discovery Silver updated on exploration at Cordero, with 75,000 m of drilling completed on 178 holes, and four drills continuing the phase 2 program. Golden Tag announced the discovery of a shallow zone of epithermal mineralization at San Diego.   ON DEALS AND CORPORATE ISSUES, Mexus Gold informed Fresnillo PLC is reviewing its Santa Elena mine. Riverside Resources announced BHP is funding a third year of generative work in Sonora. ON SOCIAL RESPONSIBILITY, Peñoles and Fresnillo PLC informed on their policies and programs to aid in education on a wide range of communities. Minera San Xavier informed Cerro San Pedro in San Luis Potosi has been declared as “Cyanide Free Site” by the International Cyanide Management Institute.

ON MEXICO ISSUES

  • CanCham (Cámara de Comercio de Canadá en México) pointed out that the lack of clear policies and the opacity on rule of law is affecting Canadian investments, which show an 18% decrement in the last year, holding the investment of thousands of millions (Mexican number notation) of dollars in the energy, mining, pharmaceutical and agricultural sectors. These remarks were expressed by Enrique Zorrilla, Cancham’s president, in the meeting between the Commerce ministers of Mexico, Canada and the United States.
  • Mexico is preparing its strategy to develop the lithium market. The federal government intends to become a lithium producer by controlling several deposits, Bolivia’s advice and a commerce treatise to facilitate establishing an electric battery factory. The current government senate fraction is preparing a proposal to create the Instituto Nacional del Litio. (Lithium National Institute) and to declare lithium as Nation’s exclusive property (Note. – This federal initiative push misses the point that so far there is not a single lithium mine in Mexico, that its lithium in brines potential is limited at best, and that the economics of lithium extraction from clays -like in the Bacanora Lithium’s deposit in Sonora- is not yet clear).
  • Fernando Alanís, president of Camimex (Cámara Minera de México) informed that lithium deposits in Mexico have a very low grade, and lack the technology for its extraction, reason for which the country is far from becoming a world power in lithium production. Lithium presents in three kind of deposits: hard rock (pegmatites), brines (from salt lakes) and clays. Rock and brine lithium extraction accounts for 100% of the world production, whereas the extraction of lithium from clays is very energy intensive and expensive, not having a single producing mine in the entire planet.
  • Camimex released a table with the Mexican Mining Developments programmed for the next few years, same that reach US$7,820 Million in investment (Mexican number notation, equivalent to US$7.8 billion).

ON EXPLORATION

  • Mithril Resources Ltd. provided an update on drilling at its Copalquin project in Durango. The current program main focus is to extend the Refugio ore shoot down dip (presently 600 m along strike, 200 m down dip, 5 m in width), maiden drilling at Los Pinos target, extend three holes and deep exploration drilling at La Soledad and extend near-surface intercepts at El Cometa.
  • Ridgestone Mining Inc. commenced permitting for drill programs at Guadalupe y Calvo, Chihuahua, and Rebeico, Sonora.
  • Riverside Resources Inc. reported surface sample results from its La Silla project in Sinaloa. The highlighted samples from the El Ciruelo and El Roble targets returned 6.1 gpt Au, 80 gpt Ag; 5.6 gpt Au, 81 gpt Ag; 4.4 gpt Au, 35 gpt Ag; 3.5 gpt Au, 26 gpt Ag; 3.3 gpt Au, 20 gpt Ag; 2.6 gpt Au, 41 gpt Ag, on quartz veining, gossanous breccia and strongly oxidized andesite. El Ciruelo target extends for at least 1 km with a 1-5 m wide chalcedonic vein zone. El Roble vein extends for at least 300 m, reaching up to 2 m in width, with mineralization occurring also in the host rock.
  • Vizsla Silver Corp. provided an update on the recently completed geophysical survey completed at Panuco, in Sinaloa. A fixed loop electromagnetics (FLEM, or EM) was trialed and detected massive sulfide mineralization on the Napoleon and Josephine veins, proved with three massive sulfide intercepts in the latter. The Josephine vein has no known surface expression and runs parallel to the west of the main Napoleon trend. Mineralization at Tajitos is not related to massive sulfides and was not detected with EM. Vizsla is planning a property wide airborne EM-magnetic survey at Panuco.
  • Kootenay Silver Inc. announced high-grade results from the 5,000 m core drill program currently underway at Columba, Chihuahua. Highlighted core length intervals in the Hanging-Wall, F, and Footwall veins comprise 1.55 m @ 189 gpt Ag, 0.1%Pb, 0.2% Zn; 1.0 m @ 104 gpt Ag, 0.1% Zn; 2.44 m @ 217 gpt Ag, 0.1% Pb, 0.1% Zn; 2.94 m @ 321 gpt Ag, 0.2% Pb, 0.6% Zn (including 1.94 m @ 428 gpt Ag, 0.3% Pb, 0.7% Zn); 8.0 m @ 130 gpt Ag, 0.1% Pb, 0.2% Zn (including 2.9 m @ 265 gpt Ag, 0.1% Pb, 0.5% Zn); 1.95 m @ 104 gpt Ag, 0.1% Pb, 0.1% Zn; 9.0 m @ 354 gpt Ag, 0.1% Pb, 0.4% Zn (including 2.63 m @ 809 gpt Ag, 0.3% Pb, 0.4% Zn); 30.0 m @ 86 gpt Ag (including 2.37 m @ 425 gpt Ag, 0.2% Zn).
  • Brigadier Gold Ltd. announced the discovery of bulk tonnage type copper mineralization at its Picachos project in Sinaloa. Fifty meters on trenching of historic copper anomalies has returned XRF copper values ranging from 0.05 to 1.34% Cu and 20 to 284 ppm Ag. Brigadier has also completed mapping and sampling of the historic La Gloria mine, where a drill hole intercepted 1.0 m @ 6.26 gpt Au.
  • Tocvan Ventures Corp. released results for the first three holes of its phase-II drill program at Pilar, in Sonora. The drill program consists of 2,900 m of reverse circulation drilling in 17 holes, of which 14 are pending results. Highlighted down-hole intercepts comprise 29 m @ 0.71 gpt Au (including 6.1 m @ 1.9 gpt Au); 24.4 m @ 0.56 gpt Au (including 9.2 m @ 1.3 gpt Au, 14 gpt Ag); 6.1 m @ 0.48 gpt Au, 4 gpt Ag; 4.6 m @ 0.50 gpt Au, 11 gpt Ag.

ON MINING

  • Impact Silver Corp. presented its financial and operating results of Q1 2021. During the period 36.4 K tonnes were processed @ 162 gpt Ag to produce 156.9 K Oz Ag. “continued exploration on the north and south extensions of the Veta Negra Mine, trenching on the bulk tonnage gold target at Manto America in the central part of the district and exploration on the northwest (Pachuqueno) extensions of the Guadalupe Mine”.
  • Magna Gold Corp. has exceeded 3 M man-hours of work without lost-time incidents within all its operations, including contractors and suppliers. The last lost-time incident was in 2018, and the mine has not had a fatal accident in its 11 years history.
  • Telson Mining Corp. presented its first quarter 2021 financial and operating results. At Campo Morado in Guerrero, 174.4 K tonnes were processed to produce 11,013 tonnes Zn (74% Zn recovery), 1,908 tonnes Pb at cash cost $0.70 per Lb Zn and AISC of $0.90 per Lb Zn. During the period gross revenue was $21.2 M (Q1 2020: $19.0 M) and mine operating profit $5.25 M (Q1 2020: $0.26 M loss).

ON FINANCING

  • Silver Bull Resources Inc. announced its intent to distribute 34.2 M shares of Arras Minerals Corp. to Silver Bull shareholders. Silver Bull transferred mineral properties in Kazakhstan and received 36 M shares of Arras in return, making Arras an approximately 88%-owned subsidiary of Silver Bull (Sierra Mojada, Coahuila).
  • Silver Viper Minerals Corp. intends to undertake a non-brokered private placement financing to raise aggregate gross proceeds of up to C$6 M (La Virginia, Sonora).
  • Vizsla Silver Corp. entered into an agreement with Canaccord Genuity Corp. on behalf of a syndicate of underwriters to buy units of the company for gross proceeds of $60 M (Panuco, Sinaloa).
  • Reyna Silver Corp. entered into an agreement with Eight Capital and Red Cloud Securities Inc. in connection with a private placement intended to raise up to C$5 M (Guigui and Batopilas, Chihuahua).
  • Sable Resources Ltd. entered into an agreement with Sprott Capital Partners LP and Eight Capital in connection with a bought deal private placement financing to raise up to C$10 M (Vinata, Chihuahua).
  • Mammoth Resources Corp. Announced a non-brokered private placement financing aiming to raise up to $2 M, same that by the next day had been increased to $2.58 M (Tenoriba, Chihuahua).
  • Defiance Silver Corp. has increased the size of its previously announced private placement with Red Cloud Securities Inc. for gross proceeds of up to C$11.5 M (Bolañitos and Pinguico, Guanajuato).

ON RESOURCES AND DEVELOPMENT

  • Prime Mining Corp. released additional results from its ongoing 15,000 m drill program at Los Reyes, Sinaloa. The Highlighted true width intercepts are from the Guadalupe East, Zapote South and the Estaca vein: 11.6 m @ 8.12 gpt Au, 725 gpt Ag; 5.6 m @ 11.95 gpt Au, 1,221 gpt Ag; 2.1 m @ 21.63 gpt Au, 1,960 gpt Ag; 2.0 m @ 11.17 gpt Au, 909 gpt Ag; 2.4 m @ 2.00 gpt Au, 121 gpt Ag; 1.4 m @ 10.50 gpt Au, 300 gpt Ag; 3.9 m @ 0.45 gpt Au, 37 gpt Ag; 0.6 m @ 93.80 gpt Au, 829 gpt Ag.
  • GR Silver Mining Ltd. reported near surface drill results from the Plomosas mine area in Sinaloa. Highlighted true width intervals comprise 11.9 m @ 84 gpt Ag, 2.3% Pb, 2.7% Zn, 0.1% Cu; 16.7 m @ 7 gpt Ag, 0.22 gpt Au, 0.1% Pb, 0.3% Zn; 10.8 m @ 3 gpt Ag, 0.20 gpt Au, 0.1% Pb, 0.4% Zn; 4.2 m @ 10 gpt Ag, 0.09 gpt Au, 0.1%Pb, 0.6% Zn, 0.1% Cu; 2.1 m @ 350 gpt Ag, 1.0% Pb, 0.4% Zn; 1.9 m @ 348 gpt Ag, 0.3% Pb, 0.3% Zn; 1.3 m @ 26 gpt Ag, 0.19 gpt Au, 3.3% Pb, 3.3% Zn; 1.0 m @ 128 gpt Ag, 1.00 gpt Au, 9.0% Pb, 9.7% Zn, 0.2% Cu; 2.6 m @ 45 gpt Ag, 0.60 gpt Au, 3.0% Pb, 0.9% Zn; 4.7 m @ 187 gpt Ag, 0.18 gpt Au, 2.2% Pb, 1.2% Zn, 0.1% Cu; 2.0 m @ 277 gpt Ag, 0.22 gpt Au, 0.2% Pb, 0.4% Zn; 1.9 m @ 283 gpt Ag, 0.82 gpt Au, 0.3% Pb, 1.0% Zn, 0.1% Cu.
  • GoGold Resources Inc. released results of nine holes on the Casados deposit at the Los Ricos North project in Jalisco. Highlighted core length intersects comprise 29.9 m @ 0.25 gpt Au, 70 gpt Ag; 15.5 m @ 0.27 gpt Au, 67 gpt Ag; 34.4 m @ 0.17 gpt Au, 67 gpt Ag; 5.3 m @ 0.65 gpt Au, 305 gpt Ag; 9.2 m @ 0.24 gpt Au, 109 gpt Ag (including 1.9 m @ 0.61 gpt Au, 442 gpt Ag); 60.5 m @ 0.21 gpt Au, 44 gpt Ag; 2.1 m @ 0.57 gpt Au, 322 gpt Ag; 54.1 m @ 0.37 gpt Au, 92 gpt Ag; 28.5 m @ 0.43 gpt Au, 100 gpt Ag (including 1.8 m @ 2.09 gpt Au, 418 gpt Ag); 14.0 m @ 0.46 gpt Au, 134 gpt Ag (including 5.3 m @ 1.04 gpt Au, 304 gpt Ag); 2.6 m @ 2.93 gpt Au, 610 gpt Ag.
  • Discovery Silver Corp. released results from 12 diamond drill holes testing the Josefina and Todos Santos high-grade vein trends at the Cordero project in Chihuahua. Highlighted intercepts on the Josefina vein trend comprise 41.5 m @ 97 gpt Ag, 0.04 gpt Au, 1.0% Pb, 2.5% Zn (including 4.1 m @ 520 gpt Ag, 0.11 gpt Au, 3.0% Pb, 9.8% Zn and 3.3 m @ 182 gpt Ag, 0.09 gpt Au, 3.4% Pb, 7.1% Zn); 13.1 m @ 112 gpt Ag, 0.13 gpt Au, 1.3% Pb, 2.2% Zn; 36.4 m @ 66 gpt Ag, 0.10 gpt Au, 0.3% Pb, 1.0% Zn; 87.4 m @ 38 gpt Ag, 0.06 gpt Au, 0.2% Pb, 1.0% Zn; 3.6 m @ 343 gpt Ag, 0.11 gpt Au, 1.7% Pb, 2.7% Zn; 19.3 m @ 40 gpt Ag, 0.06 gpt Au, 0.7% Pb, 1.4% Zn); 22.4 m @ 156 gpt Ag, 0.10 gpt Au, 1.7% Pb, 2.3% Zn (including 3.7 m @ 299 gpt Ag, 0.16 gpt Au, 3.9% Pb, 5.7% Zn). The Josefina vein trend includes two subparallel veins that run for 1.5 km, and has been tested to 370 m depth and remains open. The Todos Santos vein trend consists of two closely spaced veins, extends for at least 1.5 km along strike and 400 m of depth in old workings and drill holes. Highlighted intercepts comprise 62.0 m @ 19 gpt Ag, 0.28 gpt Au, 0.1% Pb, 2.0% Zn; 21.4 m @ 46 gpt Ag, 0.07 gpt Au, 0.8% Pb, 1.3% Zn; 1.9 m @ 113 gpt Ag, 0.04 gpt Au, 2.4% Pb, 3.2% Zn; 3.7 m @ 96 gpt Ag, 0.07 gpt Au, 1.8% Pb, 3.0% Zn; 2.1 m @ 160 gpt Ag, 0.27 gpt Au, 3.3% Pb, 3.6% Zn.
  • Sailfish Royalty Corp. filed a NI-43-101 technical report and estimate of mineral resources for the Gavilanes project in Durango.
  • Discovery Silver Corp. updated on its Cordero project in Chihuahua and informed that by the end of the first quarter 2021 had cash and cash equivalents for $94.7 M. At Cordero 75,000 m of drilling were completed in 178 holes in phase 1 drilling, providing information to be used in the bulk-tonnage preliminary economic assessment (PEA) underway. Phase 2 drilling continues with four rigs, focused on reserve definition, resource expansion and high-grade vein delineation. Bulk tonnage targeted drilling has returned up to 128.2 m @ 65 gpt Ag, 0.05 gpt Au, 1.2% Pb, 1.3% Zn; 131.6 m @ 48 gpt Ag, 0.09 gpt Au, 0.5% Pb, 1.1% Zn (including 37.1 m @ 119 gpt Ag, 0.22 gpt Au, 1.0% Pb, 1.2% Zn); 110.0 m @ 37 gpt Ag, 0.04 gpt Au, 0.8% Pb, 1.0% Zn; 85.6 m @ 53 gpt Ag, 0.05 gpt Au, 1.4% Pb, 1.7% Zn. Drilling on high-grade veins has returned up to 4.1 m @ 520 gpt Ag, 0.11 gpt Au, 3.0% Pb, 9.8% Zn in the Josefina vein; 4.0 m @ 377 gpt Ag, 0.28 gpt Au, 7.1% Pb, 3.4% Zn in the Todos Santos vein and 4.4 m @ 246 gpt Ag, 0.39 gpt Au, 6.5% Pb, 0.4% Zn on the Parcionera vein.
  • Golden Tag Resources Ltd. discovered a new zone of epithermal mineralization at the San Diego project in Durango. The new drill hole intercepted 10.0 m @ 0.55 gpt Au, 628 gpt Ag, 1.1% Pb, 3.6% Zn, 0.12% Cu, in a zone where previous drilling had returned 2.0 m @ 0.33 gpt Au, 161 gpt Ag, 0.3% Pb, 0.2% Zn, 0.04% Cu; 3.75 m @ 0.32 gpt Au, 125 gpt Ag, 1.5% Pb, 4.0% Zn, 0.12% Cu. “The hole intersected a series of epithermal breccias and quartz-carbonate veins within the Central Diorite intrusion from 73.0 to 92.70 m which are characterized by cavity filling banded quartz and carbonate veins with fluorite and associated sulfides comprised primarily of pyrite, sphalerite, galena, boulangerite, and arsenopyrite”.

ON DEALS AND CORPORATE ISSUES

  • Mexus Gold US. informed personnel from Fresnillo PLC is reviewing its Santa Elena mine in Sonora. The geologists are checking the potential for a disseminated deposit, as well as the quartz vein currently worked by Mexus.
  • Riverside Resources Inc. announced BHP and Riverside “have agreed on moving forward with a third year of generative funding for copper exploration in Sonora. The new budget is US$1.3 M for generative exploration work.

ON SOCIAL RESPONSIBILITY

  • Peñoles and Fresnillo PLC informed on their policies and programs to aid on education in a widespread communities.
  • Minera San Xavier has been declared as “Cyanide Free Site” by the International Cyanide Management Institute. Cerro San Pedro is the first mine in the world that has realized the dismantling process of the 110 m high heap that covers 102 hectares (1 square kilometer).

Content like what you have just read can be seen at https://gambusinoprospector.com/ and at LinkedIn’s Mexico Mineral Exploration Group. On the image below:  Quartz-tourmaline breccia from a project in Sinaloa. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the Third Week of April, 2021

By Jorge Cirett

During the 15th week of the year (April 12th to April 18th, 2021), as a sign of the strong current activity, at least 43 press releases were announced by companies working in Mexico. To note, ten companies posted exploration advances on their properties, seven presented mining related news, six posted on financing or share options (including C$2.35 M, $3 M, C$14.1 M, C$5.6 M and $25 M), eight more on project development or resource definition and three posted on corporate issues. ON MEXICO ISSUES, Francisco Quiroga, the ex-secretary of Mining has been appointed ambassador in Germany. The Sonora Mining Cluster has two new female counselors. Napoleon Gomez Urrutia and its SNTMMS Union have been condemned to pay US$54 M to some of its affiliates. A new Coordination has been created in the Economy Secretariat to promote mining. The CTM Union opposes the outsourcing reform that would decrease the participation of workers in the profits of mining companies. ON EXPLORATION, In Sonora, Silver Spruce signed a LOI on the Diamante 1 and Diamante 2 projects; Ridgestone announced its exploration plan for the Rebeico property; Tocvan Ventures commenced phase II RC drilling at Pilar; Carlyle Commodities released good drilling results from Cecilia; Orogen informed its Lola and Sarape properties are being drilled by partners; Canuc Resources released information on the first drill hole on the present campaign at its San Javier Au-Ag project. In Chihuahua, Monarca Minerals signed a surface access agreement for its San Jose project; Kootenay Silver updated on drilling of its Columba project. In Sinaloa, Viszla Silver released drilling results from the Napoleon zone at its Panuco project. In San Luis Potosi and Zacatecas Advance Gold released results from auger sampling at several salars. ON MINING, Magna Gold, Fortuna Silver Mines, Sierra Metals, Excellon and First Majestic Silver released Q1 2021 production results. Consolidated Zinc announced the commencement of concentrate production from the recently refurbished plant at Plomosas in Chihuahua. ON FINANCING, Colibri Resources, Sonoro Gold, Santacruz Silver Mining, Heliostar Metals and Candelaria Mining released news on financing (with C$2.35 M, $3 M; $14.1 M, C$4 M and up to $25 M respectively). Defiance Silver completed its uplisting to the OTCQX Best Market ON RESOURCES AND DEVELOPMENT, Equinox Gold commenced the development of the Bermejal underground mine in Guerrero. Xali Gold submitted permit applications for the Mexico Mines Tailings project in El Oro, Estado de Mexico. Gatos Silver presented good drilling results from both extensions of the Cerro Los Gatos deposit in Chihuahua. Fabled Silver Gold released results from drilling at Santa Maria, Chihuahua. SilverCrest Metals released high-grade drilling results from several veins at Las Chispas, Sonora. Almaden Minerals is conducting an induced polarization survey at the Ixtaca deposit in Puebla. GoGold Resources released drilling results from El Favor zone at its Los Ricos North project in Jalisco. Golden Tag Resources released results from drilling at its San Diego property in Durango.   ON DEALS AND CORPORATE ISSUES, VanGold Mining closed with Endeavour Silver the acquisition of the El Cubo mine and mill complex in Guanajuato. Silver Spruce Resources signed a LOI with Colibri Resource on the Diamante 1 and Diamante 2 properties in Sonora. Empress Royalty executed a $5 M Silver Stream agreement with Telson Mining. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • Francisco Quiroga Fernández, Mining ex-subsecretary was appointed ambassador of Mexico in Germany. Rare in the present administration, he’s a competent professional with experience in the private industry, and more than capable to develop and strengthen political and economic ties between the two countries.  
  • The Sonora Mining Cluster named Silvia Álvarez and Maria López Rosas as new counselors to the organism.
  • The Sindicato Nacional de Trabajadores Mineros, Metalúrgicos y Similares de La República Mexicana (a strong Mining Union) and its leader Napoleón Gómez Urrutia have lost a legal law suit and have been condemned by the Junta Federal de Conciliación y Arbitraje to pay US$54 M. The Union received these funds from the sale of the Cananea mine 15 years ago, and was supposed to deliver that money to the at the time workers of the company in charge. The union failed to deliver the funds to the miners.
  • The Mexican president ordered by decree the creation of the Coordination of Extractive Activities on the Economy Secretariat. Said unit is to coordinate the mining activities of the State and actions to promote national and foreign investments in mining, among other activities.
  • The CTM Union (Confederación de Trabajadores de México) opposes the reform on outsourcing that would lower the amount the miners receive as participation on the company’s annual profits.  

ON EXPLORATION

  • Silver Spruce Resources Inc. signed a letter of intention (LOI) on two properties in Sonora, Diamante 1 and Diamante 2 covering 1,057 hectares. Historical assays from samples in the Diamante 1 and Diamante 2 properties, which display epithermal intermediate sulfidation mineralization have returned up to 39.8 gpt Au, 3,460 gpt Ag, 7.3% Pb, 5.6% Zn. Diamante 1 has already six main targets, including the La Prieta-El Aguaje vein system, which runs for 2,000 m averaging 1 m in width. At Diamante 2 The Calton area displays two vein 900 m and 1,100 m in length, ranging from 0.30 m to 1.70 m in width. The El Cumbro-Mezquite Raizudo veins follow a structural trend 900 m long, displaying an average width of 1 meter.
  • Advance Gold Corp. released results from auger drilling sampling at all the salars it recently acquired in Zacatecas and San Luis Potosí. The 0.5 m to 1 m of depth samples returned highlighted results of up to 650 ppm boron (B), 1.91% Potassium (K) and 620 ppm Lithium (Li). The average grade of the samples was 247 ppm B, 1.17% K and 215 ppm Li.
  • Monarca Minerals Inc. executed and ratified by a Notary Public the surface access agreement with both the Ejido and Colonia on its San Jose silver project in Chihuahua. The company is now to apply for the environmental permit that will allow it to conduct its planned 5,000 m drilling campaign.
  • Ridgestone Mining Inc. announced an exploration plan for its 3,459 hectares Rebeico project in Sonora. The current phase will comprise geologic mapping, sampling and prospecting, with focus on the New Year zone, the Santa Elena outcrop and El Cobre mine.
  • Tocvan Ventures Corp. announced the start of phase II of its drilling program at the Pilar project in Sonora. The two-stage 4,000 m reverse circulation (RC) drill program will focus first on the “definition and expansion of the Main Zone, which during Phase I returned 94.6-meters at 1.6 g/t Au including 9.2m at 10.8 g/t Au and 38 g/t Ag”, and then to test the new targets across the property.
  • Kootenay Silver Inc. reported it has completed 12 core drill holes totalling 1,800 m as part of its 5,000 m campaign at its Columba project in Chihuahua. Kootenay has tested the F vein and is now testing an area east of the J-Z zone.
  • Carlyle Commodities Corp. released the first batch of drill results from the Cecilia project in Sonora. The program consisted of seven holes, of which results have been received for five. The best intercept was 24.2 m @ 1.51 gpt Au. Other core-length highlighted intervals comprise 1.30 m @ 0.69 gpt Au; 5.95 m @ 0.20 gpt Au, 3.10 m @ 0.52 gpt Au; 9.45 m @ 0.23 gpt Au; 1.00 m @ 0.55 gpt Au; 3.45 m @ 0.35 gpt Au; 4.30 m @ 0.29 gpt Au; 6.10 m @ 0.43 gpt Au; 3.00 m @ 0.87 gpt Au. “The first drill program from Carlyle and Riverside was focused on targeting the hydrothermal system identified at two principal elevations: 2,200 m and 1,900 m, respectively corresponding to the San Jose Target and the North Breccia Target…… to test the continuity of the mineralized structures at shallow depth”.  
  • Orogen Royalties Inc. announced the commencement of drilling programs on two of its properties in Sonora. At La Lola, partner Heliostar Metals Ltd. has initiated a 1,500 m drilling program. At the 57.8 square km Sarape project, Orogen and partner Hochschild PLC commenced a planned 3,000 m program. Eight holes will be drilled on 2.5 km of the Sarape vein. “In 2019, nine holes drilled within a 380-metre-long segment of the vein defined a structural dilation zone at 100-350 metres depth (Figure 2). In this zone the vein thickens to 23.6 metres in width..…. A deeper horizon will also be drilled to identify if the grade of the vein improves with depth”.
  • Canuc Resources Corp. informed on drilling advance at its San Javier Ag-Au project in Sonora. The first hole of a planned 6,000 m program was ended at 89.5 m in a fault zone. It intersected brecciated sedimentary rocks with stockwork veining and three intervals of massive magnetite breccia. “The 20-hole program is designed to test at least 4 magnetic features that underlie areas where a 2020 mapping and rock sampling program identified silver, gold and copper mineralization. At surface, the host rocks for three of these features are found to be magnetite breccia”. The program is focused on magnetic anomalies identified by a previous survey.
  • Viszla Silver Corp. released drilling results from step out drilling at the southern extension of the Napoleon prospect at its Panuco project in Sinaloa. The Napoleon vein has been mapped for more than 2.5 km and has four rigs drilling at the time. Highlighted true width intercepts comprise 4.46 m @ 890 gpt Ag, 19.99 gpt Au, 0.7% Pb, 1.8% Zn (including 0.92 m @ 3,804 gpt Ag, 91.91 gpt Au, 1.5% Pb, 3.5% Zn); 1.92 m @ 105.9 gpt Ag, 7.28 gpt Au, 0.7% Pb, 2.9% Zn (including 1.45 m @ 131 gpt Ag, 9.39 gpt Au, 0.8% Pb, 3.1% Zn)

ON MINING

  • Fortuna Silver Mines Inc. released production results for the first quarter 2021, including figures from its Mexican operations. At San José, in Oaxaca, 259.8 K tonnes @ 217 gpt Ag, 1.36 gpt Au were milled, recovering 90.8% Ag, 90.5% Au to produce 1.65 M Oz Ag, 10,301 Oz Au.
  • Consolidated Zinc Ltd. announced the 2021 zinc concentrate “benchmark treatment charge (TC) has been agreed between the major miners and smelters at US$159.00/t of concentrate, a reduction of 47% from last year’s benchmark treatment charge of US$299.75/t”. Treatment charges in 2020 represented 33% of total operating costs (before by-product credits) being the single largest operating cost (Plomosas, Chihuahua).
  • Magna Gold Corp. informed production levels have benefited from the accelerated stripping program, resulting in month to month growth in gold production, with 3,085 ounces in January, 2,670 ounces in February and 4,030 ounces in March. Magna anticipates the mine will return to full scale commercial production by June of this year, with 2021 guidance in the range of 55,000 to 65,000 Oz Au. During the Q1 2021, 619 K tonnes were mined @ 0.34 gpt Au, with 5.2 M tonnes of waste moved (8.40 strip ratio) to produce 9,785 Oz Au, 8.1 K Oz Ag.
  • Sierra Metals Inc. reported first quarter 2021 production reports, including figures from its Mexican properties. At Bolivar, in Chihuahua, 371.6 K tonnes were processed @ 0.77% Cu, 19.7 gpt Ag, 0.19 gpt Au, recovering 82.8% Cu, 83.6% Ag, 69.6% Au, to produce 5.2 M Lb Cu, 197 K Oz Ag, 1,591 Oz Au (7.3 M Lb CuEq). At Cusi, also in Chihuahua, 76.6 K tonnes were processed @ 15.2 gpt Ag, 0.16 gpt Au, 0.22% Pb, recovering 80.9% Ag, 39.6% Au, 81.5% Pb, to produce 313 K Oz Ag, 155 Oz Au, 298 K Lb Pb (334 K AgEq Oz Ag).
  • Consolidated Zinc Ltd. announced the first concentrate from the newly refurbished plant at its Plomosas property in Chihuahua has been produced.
  • Excellon Resources Inc. released Q1 2021 production results from the Platosa mine in Durango. At the site 21,212 tonnes were mined, 21,764 tonnes were milled @ 524 gpt Ag, 5.35% Pb, 6.73% Zn, recovering 89.7% Ag, 81.8% Pb, 74.7% Zn to produce 328.7 K Oz Ag, 2.1 M Lb Pb, 2.4 M Lb Zn, or 516.7 K Oz AgEq.
  • First Majestic Silver Corp. produced during the Q1 2021 2.9 M Oz Ag, 23,873 Oz Au, or 4.5 M Oz AgEq from its three mines in Mexico: San Dimas in Durango, Santa Elena in Sonora and La Encantada in Coahuila. The company completed 39,552 m in exploration drilling during the quarter, with 10 rigs at San Dimas, seven rigs at Santa Elena and two rigs at La Encantada.

ON FINANCING

  • Colibri Resource Corp. has closed a non-brokered private placement for CAD$2.35 M in gross profits. (Evelyn, Sonora).
  • Sonoro Gold Corp. has increased its non-brokered private placement to raise an aggregate of $3 M thorough the exercise of over allotment options (Cerro Caliche, Sonora).
  • Santacruz Silver Mining Ltd. closed its non-brokered private placement offering, for gross proceeds of CDN$14.1 M (Carrizales, Hidalgo).
  • Defiance Silver Corp. successfully completed an uplisting to the OTCQX Best Market (San Acacio, Zacatecas).
  • Heliostar Metals Ltd. is increasing the size of its C$4 M marketed private placement to raise up to C$5.6 M (La Lola, Sonora).
  • Candelaria Mining Corp. intends to raise up to $25 M to fund exploration activities at the Caballo Blanco district in Veracruz, and the Pinos project in Zacatecas.

ON RESOURCES AND DEVELOPMENT

  • Equinox Gold Corp. is commencing development of the Bermejal underground mine at its Los Filos project in Guerrero.
  • Xali Gold Corp. submitted permit applications for the Mexico Mines Tailings project in El Oro, Estado de México. The permits are to allow both the transportation and re-processing of the tailings at a new 25 hectares plant site located 5 Km from the current location. Xali’s is to pay the El Oro municipality an 8%  net profit interest (NPI). The project has an inferred resource of 1.27 M Tonnes grading 2.94 Au g/t, 75.12 Ag g/t, containing 119,900 Oz Au and 3.06 M Oz Ag.
  • Gatos Silver Inc. reported drilling results of delineation drilling at Cerro Los Gatos in Chihuahua. The program has demonstrated continuity in both the southeast and northwest projections of the current reserve. Highlighted true width drill results include: 9.5 m @ 0.11 gpt Au, 51 gpt Ag, 2.1% Pb, 3.1% Zn; 3.4 m @ 0.12 gpt Au, 122 gpt Ag, 5.0% Pb, 9.8% Zn, 0.2% Cu; 5.4 m @ 0.25 gpt Au, 121 gpt Ag, 1.5% Pb, 2.9% Zn; 7.2 m @ 0.14 gpt Au, 106 gpt Ag, 3.5% Pb, 3.4% Zn, 0.1% Cu; 2.6 m @ 0.21 gpt Au, 327 gpt Ag, 9.2% Pb, 3.8% Zn, 0.14% Cu; 12.0 m @ 0.15 gpt Au, 44 gpt Ag, 1.1% Pb, 4.0% Zn, 0.15% Cu; 2.8 m @ 0.20 gpt Au, 111 gpt Ag, 1.6% Pb, 3.9% Zn, 1.3% Cu; 1.9 m @ 0.12 gpt Au, 132 gpt Ag, 3.2% Pb, 9.9% Zn, 0.4% Cu; 7.2 m @ 0.06 gpt Au, 25 gpt Ag, 1.0% Pb, 10.3% Zn, 0.2% Cu; 5.7 m @ 0.17 gpt Au, 152 gpt Ag, 3.0% Pb, 4.4% Zn, 0.30% Cu.
  • Fabled Silver Gold Corp. released drilling results from its Santa Maria property in Chihuahua. The last sample on the last drill hole returned 75.9 gpt Ag, with 6.4 m of similar material awaiting results. Fabled is making a reinterpretation of previous work and testing the new targets identified. The ongoing 8,000 m drill program has been increased to at least 9,200 m. “This program will be focused underground to delineate the Santa Maria Central Structure with multi underground drill stations being prepared”.
  • SilverCrest Metals Inc. released additional in-fill and expansion drill results s from the Babi Vista vein splay, Babi Vista vein, Granaditas 1 vein, Granaditas 2 vein, and adjacent hangingwall and footwall veins in the Babicanora Area of its Las Chispas Project in Sonora. The results are from 78 holes totaling 29,308 m completed since the last news release for these veins, in areas with mineral resources or in close proximity. Average results for the Babi Vista vein splay comprise 0.91 true width @ 16.12 gpt Au, 1,351 gpt Ag, with individual intercepts of up to 1.04 m @ 185.65 gpt Au, 13,959 gpt Ag. Babi Vista Footwall and Granaditas 1 average 1.04 m @ 12.89 gpt Au, 1,884 gpt Ag, with the highest intercept running 0.40 m @ 114.0 gpt Au, 78,872 gpt Ag (7.89% Ag). The Babi Vista and Granaditas 2 vein average 0.67 m @ 4.56 gpt Au, 414 gpt Ag, while the Babi Vista Hangingwall averages 0.43 m @ 2.55 gpt Au, 249 gpt Ag.
  • Almaden Minerals Ltd. is conducting an induced polarization geophysical survey at the Ixtaca deposit in Puebla. “The work is designed to help define drill targets beneath the area of hydrothermal alteration called the Southeast Alteration (SE) zone and at depth beneath the Ixtaca deposit (“Ixtaca Deeps”). It is hoped that this geophysical survey, along with past survey results, will identify potential zones of veining like those in the Ixtaca deposit. The discovery drill hole in the original Ixtaca deposit area was planned in part based on high resistivity and chargeability results obtained in an earlier IP geophysical survey”.
  • GoGold Resources Inc. released results from six diamond drill holes from El Favor area at its Los Ricos North project in Jalisco. Highlighted core-length intervals comprise 69.3 m @ 108 gpt Ag, 0.49 gpt Au (including 15.3 m @ 392 gpt Ag, 1.76 gpt Au); 9.6 m @ 112 gpt Ag, 0.39 gpt Au; 59.0 m @ 119 gpt Ag, 0.32 gpt Au (including 5.0 m @ 361 gpt Ag, 0.90 gpt Au); 2.8 m @ 110 gpt Ag, 0.16 gpt Au; 16.1 m @ 97 gpt Ag, 0.21 gpt Au; 12.0 m @ 86 gpt Ag, 0.09 gpt Au; 3.2 m @ 204 gpt Ag, 0.15 gpt Au; 7.2 m @ 135 gpt Ag, 0.76 gpt Au; 23.3 m @ 92 gpt Ag, 0.22 gpt Au; 12.9 m @ 254 gpt Ag, 0.81 gpt Au (including 8.2 m @ 392 gpt Ag, 1.25 gpt Au).
  • Golden Tag Resources Ltd. released results from the first three holes of a 4,500 m campaign at its San Diego project in Durango. A hole in the Fernandez zone returned 50.17 m @ 105 gpt AgEq; Another hole intersected 127.3 m of skarn/Fernandez style mineralization, intersecting 35.46 m @ 0.06 gpt Au, 30 gpt Ag, 0.14% Pb, 0.24% Zn, 0.01% Cu (52 gpt AgEq) and 91.84 m @ 0.07 gpt Au, 15 gpt Ag, 0.31% Pb, 0.34% Zn, 0.01% Cu (49 gpt AgEq). Other holes intercepted 1.11 m @ 0.90 gpt Au, 142 gpt Ag, 0.13% Pb, 0.21% Zn, 0.02% Cu; 3.25 m @ 0.02 gpt Au, 237 gpt Ag, 0.41% Pb, 0.82% Zn, 0.08% Cu; 1.10 m @ 0.28 gpt Au, 195 gpt Ag, 1.70% Pb, 1.92% Zn, 0.07% Cu; 2.69 m @ 0.05 gpt Au, 355 gpt Ag, 0.30 % Pb, 0.41% Zn, 0.02% Cu; 8.41 m @ 0.02 gpt Au, 24 gpt Ag, 0.61% Pb, 0.49% Zn, 0.06% Cu.

ON DEALS AND CORPORATE ISSUES

  • VanGold Mining Corp. closed the acquisition of El Cubo mine and mill complex in Guanajuato with Endeavour Silver Corp..  The deal involved the payment of US$7 M in cash plus VAT and the delivery of 21.33 M shares of VanGold and a promissory note for $2.5 M a year from closing. El Cubo has 508 K tonnes grading 194 gpt Ag, 2.44 gpt Au containing 3.17 M Oz Ag, 39,860 Oz Au as indicated resources and 1.45 M tonnes @ 214 gpt Ag, 2.78 gpt Au containing 10 M Oz Ag, 129,900 Oz Au as inferred resources.
  • Silver Spruce Resources Inc. signed a letter of intention (LOI) with Colibri Resource Corp. to acquire up to 50% interest in four concessions in Sonora, comprising two properties, Diamante 1 and Diamante 2 covering 1,057 hectares. The projects are separated by 700 meters, and in close proximity to other Colibri properties. The initial cash payment by Silver Spruce is to be of $75 K (Note.- The details of the deal are lengthy and involve a third party, please take a look to the appropriate press release if interested in it).
  • Empress Royalty Corp. executed the US$5 M silver stream agreement on the Telson Mining Corp. owned Tahuehueto project in Durango. “Empress has now executed the US$5M silver stream agreement on production from Telson’s Tahuehueto project in Mexico. The US$5M Stream is on 100% of the payable silver production from Tahuehueto for the first 1,250,000 payable ounces; thereafter, the percentage will stepdown to 20% of the payable silver production to a maximum of 10 years from first production after which the Stream terminates”.

ON SOCIAL RESPONSIBILITY

  • No Relevant News.

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

On the image below:  Disseminated and vein constrained sulfides in a porphyritic intrusive rock in split diamond core from Cerro San Pedro in San Luis Potosi. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the First Week of April, 2021

By Jorge Cirett

During the 13th week of the year (March 29th to April 4th, 2021), at least 38 press releases were announced by companies working in Mexico. To note, five companies posted exploration advances on their properties, three presented mining related news, six posted on financing or share options (including C$2.2 M, C$2 M, C$10.8 M and C$82.5 M), ten more on project development or resource definition and three posted on corporate issues. ON MEXICO ISSUES, listed mining companies in Mexico paid US$1.29 B in taxes during 2020. Americas Silver and the Mexican government are in talks to solve the company’s union issues after the president of Mexico threatened with concession cancellation. Fortuna Silver denied environmental damage by its mining unit in Oaxaca. ON EXPLORATION, In Sonora, Heliostar Metals released drilling results from La Lola. In Sinaloa, Vizsla Silver released drilling results from Panuco; Brigadier Gold continues drilling at Picachos. In Durango, Silver Wolf released grab sample results from its Ana Maria project; Commander Resources reported results from a soil survey at the Pedro project.  ON MINING, McEwen Mining negotiated the end of an illegal blockade at El Gallo in Sinaloa. Prime Mining reported financial results for its Q3, 2021. Mag Silver released financial results for 2020. ON FINANCING, Colibri Resource, Sonoro Gold, Telson Mining and Equinox Gold released news on financing (C$2.2 M, C$2 M; $10.8 M and C$82.5 M respectively. Torex Gold announced the early repayment of $40 M. Reyna Silver is to issue $699.3 K in shares to consultors and advisors. ON RESOURCES AND DEVELOPMENT, Fortuna Silver released results from step out drilling at its San José mine in Oaxaca. Argonaut Gold released consolidated mineral resources estimates of more than 11.5 M Oz Au, 174.9 M Oz Ag on its properties. SilverCrest Metals updated on construction and exploration activities. Southern Silver reported high-grade drill intercepts at Cerro Las Minitas, Durango. Torex Gold presented a resource estimate of 5 M Oz Au for Los Filos in Guerrero. Ridgestone Mining updated on work at Guadalupe y Calvo (Chihuahua) and Rebeico (Sonora). Minera Alamos selected mining contractor for its Santana project in Sonora. GoGold Resources released results from drilling at Los Ricos North in Jalisco. First Majestic updated mineral resources for its mines and projects, for 340 M Oz Ag, 3.2 M Oz Au. Fabled Silver informed on drilling at Santa Maria, Chihuahua.  ON DEALS AND CORPORATE ISSUES, GR Silver Mining completed the acquisition of Marlin Gold Mining and its land holdings in Sinaloa. Silver Bull informed it has won a definitive decision on a lawsuit related to an illegal blockade at its Sierra Mojada project in Coahuila. Argonaut Gold announced the cancellation of the agreement to sell the Ana Paula project in Guerrero. ON SOCIAL RESPONSIBILITY, Fresnillo PLC informed on cultural activities aimed at helping local communities and improving the environment.

ON MEXICO ISSUES

  • Listed mining companies in Mexico paid US$1.13 B ($1,1293 M in Mexican notation) in taxes on profits, or 9.2% on total earnings, in 2020. This amount is 44.6% higher year on year, influenced by the raise in precious metals. All companies in mining paid US$9.9 B (US$9,888 million in Mexican notation) in 2020 and provided work to 9,600 suppliers.  
  • Americas Gold and Silver director and high-level government executives met to try to find a solution to the union conflict affecting the company at its Cosalá operations in Sinaloa. Last week the president of Mexico threatened with legal action to invalidate the company’s mining concession (there is no legal basis to revoke the concession).
  • Minera Cuzcatlán (Fortuna Silver) informed there is no environmental damage produced by a spill of tailings during a storm in 2018 at its San José mine in Oaxaca.

ON EXPLORATION

  • Heliostar Metals Ltd. released results from the first two holes ever drilled at the 6,360 hectare La Lola project in Sonora. The company is testing the main La Barra quartz-calcite-fluorite vein, which is up to 40 meters in width and runs for 5 kilometers and shows textures typical of shallow low sulfidation epithermal systems. A massive to crystalline quartz-calcite-fluorite subparallel vein to La Barra vein returned a core length interval of 2.5 m @ 0.01 gpt Au, 92 gpt Ag.
  • Silver Wolf Exploration Ltd. released results from surface grab samples from its 2,549 ha Ana Maria project in Durango. Initial work includes ASTER image analysis followed by a drone Lidar and hyperspectral data acquisition and analysis. Results from the 22 grab samples include up to 0.96 gpt Au, 12 gpt Ag, 3,770 ppm Cu, 1,440 ppm Pb, 278 ppm Zn, 50% Fe, 4.5% Ba, 2,450 ppm W. CRD mineralization is the target in a sedimentary package affected by an intrusive igneous stock.
  • Commander Resources Ltd. reported results from a soil survey program at its 1,750 ha Pedro project in Durango. The epithermal gold target is 4 km long by 1 km in width, as defined by gold and arsenic in soils, rocks and IP geophysics. “Outcrop exposure comprises prominent hematite-stained silica-rich ridges of angular chalcedony fragments and silicified sedimentary rocks within an angular course breccia. The mineralization extends beneath post-mineral volcanic rocks, colluvium … and alluvium”.
  • Vizsla Silver Corp. released results from 16 holes on the Tajitos zone of the Panuco project in Sinaloa. These holes expand the length of Tajitos to over 525 m, while nine other completed holes are awaiting results. Highlighted true width intervals comprise 2.5 m @ 1,586 gpt Ag, 7.72 gpt Au; 4.48 m 351 gpt Ag, 4.52 gpt Au; 7.94 m @ 387 gpt Ag, 2.25 gpt Au (including 1.44 m @ 1,365 gpt Ag, 8.35 gpt Au).
  • Brigadier Gold Ltd. continues drilling at its Picachos property in Sinaloa. To date 4,538 m of the planned 5,000 m on phase-1 diamond drilling program has been completed in 43 holes that mainly targeted the more than 7 km long Colcomeca vein system. “Several stages of mineralization are apparent from inspection of the drill core: (i) pervasive silicification with disseminated sulfide that is oxidized to hematite, (ii) crustiform quartz veining with sulfides, and (iii) cockade breccias in the central part of the structure. These breccias consist of angular rock fragments that are altered to a soft black mica on fragment margins”.

ON MINING

  • McEwen Mining Inc. informed activities at El Gallo project in Sinaloa have been restored after the illegal blockade. A new 10-year agreement was reached providing additional support to the communities and greater long-term certainty for El Gallo operation.
  • Prime Mining Corp. reported its operating and financial results for third quarter of fiscal year 2021, ended on January 2021. In January Prime paid Vista Gold Corp. US$1.1 M in accordance with terms on the Los Reyes project (Sinaloa) agreement; a final payment of $1 M is due in July 2021. Before the end of the quarter 1,053 m of drilling were completed in 5 holes. Two more drill rigs have been mobilized to the project for expansion of known in-pit resources along strike and dip, and infill drill areas to increase measured and indicated resources and target other structures for resource expansion and discovery.
  • Mag Silver Corp. released its audited consolidated financial results for 2020. Processing at the nearby Fresnillo mine plant of mineralized material from development headings began in August, with 71,859 tonnes milled @ 328 gpt Ag, producing 616.3 K Oz Ag, 1,029 Oz Au, 163 tonnes Pb, 224 tonnes Zn, netting $11.46 M as gross profit. Construction of the 4,000 tpd Juanicipio plant continues and the underground development now exceeds 35 km. The plant is now expected to commence commissioning in Q4-2021 and to reach 90-95% capacity in 2022. By the end of the period the company had cash and cash equivalents of $94 M.

ON FINANCING

  • Colibri Resource Corp. is to conduct a non-brokered private placement for gross proceeds of up to CAD$2.2 M. (Evelyn, Sonora).
  • Sonoro Gold Corp. will undertake a non-brokered private placement offering to raise up to C$2 M (Cerro Caliche, Sonora).
  • Telson Mining Corp. closed the non-brokered private placement announced in February, for aggregate gross proceeds of $10.08 M (Tahuehueto, Durango).
  • Equinox Gold Corp. announced that in response to a request from Solaris Resources Inc. the company has agreed to sell 10 M shares of Solaris for gross proceeds of C$82.5 M (Los Filos, Guerrero).
  • Torex Gold Resources Inc. announced the early repayment of the $40 M of debt in relation to the 2019 Debt Facility and is now debt free other than approximately $5 M of finance leases. Torex has signed a Third Amended and Restated Credit Agreement in connection with a two-year senior secured $150 M revolving debt facility (Limón Guajes, Guerrero).
  • Reyna Silver Corp. will make an application to the TSX Venture Exchange for issuing $699.3 K in common shares as compensation to technical consultors and advisors advancing the portfolio properties of Reyna Silver (Guigui, Chihuahua).

ON RESOURCES AND DEVELOPMENT

  • Fortuna Silver Mines Ltd. released results from step-out drilling at the San Jose mine in Oaxaca. The 4,670 m program in 22 holes established continuity of high-grade mineralization in the upper levels of the La Trinidad footwall structures. Highlighted true width intercepts comprise 4.1 m @ 699 gpt Ag, 3.57 gpt Au; 5.4 m @ 1,931 gpt Ag, 6.76 gpt Au; 9.5 m @ 306 gpt Ag, 1.38 gpt Au; 3.4 m @ 760 gpt Ag, 3.24 gpt Au; 8.4 m @ 967 gpt Ag, 4.25 gpt Au; 1.4 m @ 809 gpt Ag, 2.78 gpt Au; 14.9 m @ 473 gpt Ag, 1.25 gpt Au. “The Brownfields exploration program budget for 2021 at the San Jose Mine is US$10.9 million, which includes 33,800 meters of diamond drilling and 1,770 meters of underground development for drilling access, platforms, and services”.
  • Argonaut Gold Inc. released a new mineral resource estimate to the end of 2020, including figures for its projects in Mexico. The table below includes figures for El Castillo and San Agustin in Durango, La Colorada in Sonora, Ana Paula in Guerrero and San Antonio in Baja California Sur.    
  • SilverCrest Metals Inc. released financial results for 2020 and updated on construction and exploration activities. At Las Chispas, in Sonora, 173,000 m of in-fill and expansion drilling and 6.1 km of underground development and in-vein drifting were completed in 2020. At the end of the year SilverCrest entered into a $76.5 M construction contract for a 1,250 tonnes per day process plant at Las Chispas. In February 2021 a feasibility study (FS) was completed, at an estimated cost of $137.7 M; also in February the company completed a bought deal offering for gross proceeds of $138.1 M. The Picacho property, 40 km from Las Chispas, was acquired in mid 2020, and 5,800 m were drilled before the end of the period. For 2021, 356,000 m of drilling are planned, mostly at Las Chispas; currently there are six core rigs at Las Chispas and three at Picacho, with 22,000 m and 10,000 m already drilled during 2021 respectively. At the end of 2020 the company held $135.1 M as cash and cash equivalents.
  • Southern Silver Exploration Corp. reported high-grade Cu-Au-Ag intercepts at its Cerro Las Minitas project in Durango. At Mina La Bocona target, highlighted true-width intervals comprise: 6.3 m @ 134 gpt Ag, 0.5 gpt Au, 2.3% Cu (including 1.1 m @ 567 gpt Ag, 2.3 gpt Au, 11.2% Cu in the Bocona Chimney, and 3.8 m @ 217 gpt Ag, 0.3 gpt Au, 3.3% Pb, 0.7% Zn in the Muralla Chimney.
  • Torex gold Resources Inc. reported that in 2020 total reserves for El Limón Guajes complex in Guerrero declined 15% due to depletion. The table below shows total reserves and resources to the end of 2020.
  • Ridgestone Mining Inc. provided an update on activities at its Rebeico and Guadalupe y Calvo projects. At Guadalupe y Calvo in Chihuahua, Ridgestone is working to review all the historical data in the project, which includes over 78,000 m of drilling since the early 2000’s. “The Company anticipates a phased exploration drill program which will serve to confirm the continuity within the historical resource area, in addition to targeting a significant expansion of known mineralization”. At Rebeico, in Sonora, “The Company is currently recompiling and reinterpreting the results from prior exploration campaigns and anticipates providing an update in the near-term”.
  • Minera Alamos Inc. selected TRIGUSA as mining contractor for its Santa mine in Sonora. “Trigusa’s mining experience includes open pit mining, crushing, tailings dam construction and heap leach pads and ponds at projects in multiple states including Sonora”. The major construction activities related to the gold recovery (carbon) plant are now complete and the initial heap leach pad area has also been completed.
  • GoGold Resources Inc. released the results from 7 drill holes from El Orito area at its Los Ricos North project in Jalisco. Highlighted core length intercepts comprise 25.9 m @ 9 gpt Ag, 0.25%Pb, 0.85% Zn; 20.0 m @ 10 gpt Ag, 0.27% Pb, 1.08% Zn; 28.2 m @ 45 gpt Ag, 0.10 gpt Au, 0.58% Pb, 1.26% Zn; 11.4 m @ 27 gpt Ag, 0.24% Cu, 2.04% Pb, 5.20% Zn; 48.6 m @ 35 gpt Ag, 0.19% Cu, 1.24% Pb, 2.36% Zn (including 6.4 m @ 139 gpt Ag, 0.17 gpt Au, 0.82% Cu, 3.76% Pb, 6.70% Zn); 31.4 m @ 44 gpt Ag, 0.10 gpt Au, 0.13% Cu, 0.89% Pb, 0.86% Zn; 31.4 m @ 35 gpt Ag, 0.20 gpt Au, 0.14% Cu, 0.36% Pb, 0.28% Zn. “The El Orito deposit is unique in the Los Ricos district as it is the deeper part of the system where silver and base metals are present, while the other targets in the system to date have shown only silver and gold”.
  • First Majestic Silver Corp. filed updated technical reports for its three operating mines: San Dimas in Sinaloa, Santa Elena in Sonora and La Encantada in Coahuila. Below is a table that also includes the resources for San Martín in Jalisco, La Parrilla in Durango, Del Toro in Zacatecas and La Guitarra in Estado de Mexico.
  • Fabled Silver Gold Corp. informed on the currently ongoing  8,000 m drilling program at its Santa Maria project in Chihuahua. “We are heading into areas never explored before, with new ideas to test our structure-on-structure theory over the Property. Hole SM20-07 intercepted two broad zones of northwest trending, never seen before, semi-massive marcasite, (pyrite) in hornfels, and to the east 225 meters, we tried to cross the major C1 regional north – south fault in the center of the Property.”

ON DEALS AND CORPORATE ISSUES

  • GR Silver Mining Ltd. completed the acquisition of Marlin Gold Mining Ltd., which owns La Trinidad mine in Sinaloa and 12 concessions totaling 107,392 ha adjacent to GR Silver’s existing portfolio of properties. The properties come with a database that includes 700 stream sediment samples, 500 rock samples and over 9,000 soil samples. A total of 40,500 m of diamond, RC and sonic drilling were completed by previous operators. GR Silver will pay CDN$50 K to Mako, and “Oro Gold will grant Mako a 1% net smelter return (“NSR”) royalty on the concessions owned by Oro Gold. GR Silver Mining and/or Oro Gold will be granted the right to purchase the NSR at any time upon making a one-time payment of US$2,000,000. Mako shall be responsible for and shall pay all costs related to the Closure Plan Activities at La Trinidad….”.
  • Silver Bull Resources Inc. announced “it has won a definitive and conclusive decision in its favor in a lawsuit filed by a local mining co-operative called Minera Norteños in relation to the Sierra Mojada project” (Coahuila). “Despite the fact that the Company has at all times proceeded in accordance with the law, the Sierra Mojada project remains under an illegal blockade manned by a small group of radical members from within Minera Norteños. We believe their actions do not represent the view of the vast majority of the Minera Norteños members and wider local community, and we are working with authorities to resolve the situation in a safe, fair, and timely manner. We remain committed to good faith dialogue with selected members from Minera Norteños to find a solution….”
  • Argonaut Gold Inc. informed that the previously announced definitive agreement to sell its Ana Paula project in Guerrero expired in March 31, 2021. “The acquiring company did not fulfill its obligations in relation to financing and receipt of certain regulatory and other approvals”.

ON SOCIAL RESPONSIBILITY

  • Fresnillo PLC informed on cultural activities aimed at helping local communities and improving the environment.

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

On the image below:  Boiling texture in a quartz vein from a project in Sonora. Picture by Jorge Cirett.

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

Orogenic Gold Vein

By Miguel A Heredia

During the twelfth week of the year (March 22th to March 28th, 2021), at least 26 press releases were announced by companies working in Mexico and 4 news published by the media, with seven disclosing deals and corporate issues, seven reporting on resources and development, five announcing financial rounds, five informing on exploration resources, three commenting on Mexican issues, two discussing social issues, and one communicating production and financial results.  ON MEXICO ISSUES, Americas Gold and Silver announced that its Cosala mine in Sinaloa continue on care and maintenance after a group of individuals blocked illegally their operation since last February 2020. The head of the Tax Administration Service (SAT), Raquel Buenrostro, declared that Mining companies pay only 0.0002% of their income in taxes, however, Fernando Alanís, president of the Mexican Mining Chamber (Camimex), stated that mining in Mexico has higher taxes than those of its direct competitors. Mexico’s rich mining industry has been the basis for the success of the automotive industry for more than 500 years. ON EXPLORATION, In Sonora, Silver Tiger reported results from two holes collared at its El Tigre project. In Chihuahua, Radius completed the phase four drilling at its Amalia project.  In Sinaloa, Kootenay commenced a 3,500m core drilling program at its Copalito project, and Brigadier reported that it has rehabilitated, mapped and sampled over 29 newly discovered historic mine workings in the central part of its Picachos project. In Durango, Mithril provided an update on the exploration activities carried out at its Copalquin property. ON MINING, Impact Silver reported the 2020 full year production and financial results from its Zacualpan mine in the State of Mexico. ON  FINANCING, Empress closed its previously announced bought deal offering for gross proceeds of CAD $15.75M, and also closed a non-brokered private placement for gross proceeds of CAD $650K (Pinos project, Zacatecas). Fabled commenced to trade on the OTCQB Venture Marketplace under the symbol “FBSGF” (Santa Maria property, Chihuahua). Gold Resource declared March 2021 monthly dividend (Arista mine, Oaxaca). Silver Spruce granted 250K stock options to a consultant of the company with an exercise price of $0.06 per share (El Mezquite project, Sonora). VanGold granted stock options to officers and directors of the company (El Pinguico property, Guanajuato).  ON RESOURCES AND DEVELOPMENT, Fabled release assay results of hole SM 20-06 from its ongoing 8,000m drilling program on its Santa Maria project at Chihuahua. Golden Minerals announced expansion drilling at its Rodeo project in Durango. GR Silver released assay results from the current core drilling program from its Plomosas property in Sinaloa. Orla provided an update on the construction of its Camino Rojo mine operation in Zacatecas. Sonoro reported results from 20 RC holes drilled at its flagship property Cerro Caliche in Sonora. Torex announced results from the 2020 infill drilling program at its Media Luna property in Guerrero. Zacatecas Silver reported results from the re-sampling of drill core from its Panuco property in Zacatecas.   ON DEALS AND CORPORATE ISSUES, Agnico announced the appointment of a new member to its Board of Directors (Pinos Alton mine, Chihuahua). Chesapeake announced the resignation of its Director (Metates property, Durango). GoGold presented results from its annual general meeting of shareholders (Los Ricos project, Jalisco). Inomin completed the 100% acquisition of the La Gitana and the Peña Blanca properties in Oaxaca from Gunpoint. Orogen appointed a new member to its Board of Directors (El Ermitaño, Sonora). Telson engaged RB Milestone Group LLC to provide corporate communications advisory, non-deal roadshow advisory, market intelligence advisory, and business referrals to the management team of the company (Tahuehueto project, Durango). ON SOCIAL RESPONSIBILITY, AIMMGM Sonora District Ladies Committee recycles to help children with cancer. Peñasquito mine (Newmont) awarded scholarships to students of the Ignacio López Rayón elementary school.

ON MEXICO ISSUES

  • Americas Gold and Silver Corporation announced that its Cosala mine in Sinaloa continue on care and maintenance after a group of individuals including a small minority of the company´s hourly workforce blocked illegally the operation since last February 2020. Americas has participated in a number of meetings and discussions with senior members of the Mexican federal government to regain access to the operations but the last comments made by the Mexican President on March 17, 2020 related to a possible cancelation of the mining concessions are concerning. The company is confident that there is no basis in the fact or in the law that would diminish the company´s property rights.”The company looks forward to continuing to work with the Canadian government, the Mexican Minister of Economy and the Minister of Foreign Affairs in providing the facts, providing solutions and resolving the issues to avoid an arbitration issue between Canada and Mexico. The company looks with optimism to getting our employees back on the job as soon as possible”.
  • The head of the Tax Administration Service (SAT), Raquel Buenrostro, declared that Mining companies pay only 0.0002% of their income in taxes, however, Fernando Alanís, president of the Mexican Mining Chamber (Camimex), stated that mining in Mexico has higher taxes than those of its direct competitors. “Surely the SAT will have its figures, but what the figures tell us is that mining pays taxes and that it has a higher tax rate than any other economic activity in the country and that if a higher tax burden continues to be imposed, mining it will not be attractive in Mexico”. Raquel Buenrostro assured that in order not to raise taxes, the institution that she heads would review the form of payment in the mining sector. In this same theme, figures contained in a study by Price Waterhouse Coopers assure that in Mexico the tax burden for the mining sector is 51.3% of fiscal profit, which places it well above countries such as Canada, Chile, Peru and the United States, which have tax rates of 30 to 39%. In addition, as of this year, the possibility of deducting 50% of the payment of rights on concessions was removed, so the tax rate rose to 52.6%.
  • Mexico’s rich mining industry has been the basis for the success of the automotive industry for more than 500 years. It was stated by Sergio Almazán, president of the Association of Engineers of Mines, Metallurgists and Geologists of Mexico (AIMMGM). For Francisco Quiroga, former Undersecretary of Mining of the Ministry of Economy, mining has allowed Mexico to extract iron to produce, along with carbon, steel, a key product for automotive manufacturing. Karen Flores, general director of the Mexican Mining Chamber (Camimex), agreed, highlighting that the mining sector contributes 8.3% to the industrial GDP and 2.5% to the national GDP. Mexican auto exports totaled USD $40,495M in 2020.

ON EXPLORATION

  • Silver Tiger Metals Inc., reported results from two holes collared at its El Tigre project in Sonora. Hole ET-21-211 collared in the Sooy Vein encountered 0.11 g/t Au, 131 g/t Ag, 0.06% Cu, and 0.44% Pb (156 g/t AgEq) over 14m, including 0.24 g/t Au, 325 g/t Ag, 0.14% Cu, and 1.21% Pb (385 g/t AgEq) over 4.9m, including 0.67 g/t Au,  1,149 g/t Ag, 0.47% Cu, and 4.3% Pb (1,347 g/t AgEq) over 1.4m, while hole ET-21-213 intercepted 0.02 g/t Au, 246 g/t Ag, 0.29% Cu, 0.05% Pb, and 0.05% Zn (279 g/t AgEq) over 8.4m in the Sooy Vein, including 0.05 g/t Au, 1,260 g/t Ag, 1.41% Cu, 0.04% Pb, and 0.25% Zn (1,355 g/t AgEq), and encountered 0.22 g/t Au, 266 g/t Ag, 0.13% Cu, 0.21% Pb, and 0.14% Zn (304 g/t AgEq) over 7.6m in the Sooy Footwall Zone, including  0.12 g/t Au, 808 g/t Ag, 0.35% Cu, 0.45% Pb, and 0.26 % Zn (871 g/t AgEq) over 2.3m, including 0.17 g/t Au, 3,046 g/t Ag, 1.35 % Cu, 1.54% Pb, and 0.86% Zn (3,254 g/t AgEq) over 0.6m.
  • Radius Gold Inc., drilled 4,386m in ten holes to complete the phase four drilling at its Amalia project in Chihuahua, through its JV partner Pan American Silver Corp. Results for holes AMDD20-22 to AMDD21-25 have been previously reported, with results for holes AMDD21-26 to 31 pending. “Geological teams are now conducting detailed mapping and sampling of the El Cuervo extensions and California vein system. New environmental permits have been submitted for drilling of these targets later this year”.
  • Kootenay Silver Inc., commenced a 3,500m core drilling program at its Copalito project in Sinaloa, to test continuity and size in zones already identified in a previous drilling campaign, as well as to test other undrilled target areas in the property.
  • Brigadier Gold Limited reported that it has rehabilitated, mapped and sampled over 29 newly discovered historic mine workings in the central part of its Picachos project in Sinaloa, near the intersection of the ENE trending Cocolmeca Vein system and northwesterly trending El Placer system. The underground workings are concentrated in two areas named El Cobre and El Placer Norte. Sampling results are pending.
  • Mithril Resources Ltd., provided an update on the exploration activities carried out at its Copalquin property, Durango. Hole CDH-054, collared at La Soledad target returned 10.36 g/t Au and 81 g/t Ag over 4.88m, extending the high-grade mineralization further to the west and down dip. The company also reported that a total of 697 soil samples collected at Los Pinos/El Indio, Los Reyes, Refugio and Zaragoza target areas were analyzed with the XRF analyzer identified strong silver anomalies in the district, with values ranging from less than detection (approximately 2 ppm) to 154 ppm Ag. Samples were considered anomalous at or above 5 ppm Ag. Anomalous silver was identified in all targets. Silver is considered to be a good indicator for hidden veins or portions of known veins that are better mineralized. The soil samples were shipped to the lab for Au assays. Results are pending.

ON MINING

  • Impact Silver Corp., reported the 2020 full year production and financial results from its Zacualpan mine in the State of Mexico. The company milled 140,069 tonnes of 172 g/t Ag to produced 646.5K Oz Ag, at a production cost of $80.82 per tonne produced. Impact reported a net income of $2.3M on $15.6 M in revenue and EBITDA of $2.5 M, and mine operating earnings before amortization and depletion of $3.3M. Cash position at December 31, 2020 was $20.4M and working capital of $20.3M.

ON FINANCING

  • Empress Royalty Corp., closed its previously announced bought deal offering for gross proceeds of CAD $15.75M. In addition to the offering, the company closed a non-brokered private placement by the issue of an additional 1.3M units of the company for gross proceeds of CAD $650K (Pinos project, Zacatecas).
  • Fabled Silver Gold Corp., commenced to trade on the OTCQB Venture Marketplace under the symbol “FBSGF” (Santa Maria property, Chihuahua).
  • Gold Resource Corporation declared March 2021 monthly dividend. The company will paid on April 23, 2021, one-third of a cent for common share to shareholders (Arista mine, Oaxaca).     
  • Silver Spruce Resources Inc., granted 250K stock options to a consultant of the company with an exercise price of $0.06 per share and an expiry date of March 23, 2026. The stock options will vest 1/3 on the date of the grant, 1/3 on the first anniversary of the grant and the final 1/3 on the second anniversary of the grant (El Mezquite project, Sonora).
  • VanGold Mining Corp., granted 6.45M stock options, including 3.45M options to officers and directors of the company. The options, which shall vest over a two-year period, are exercisable up to five years from the grant date and have a strike price of $0.51 (El Pinguico property, Guanajuato). 

ON RESOURCES AND DEVELOPMENT

  • Fabled Silver Gold Corp., release assay results of hole SM 20-06 from its ongoing 8,000m drilling program on its Santa Maria project at Chihuahua. Hole 6 intersected six silver bearing structures including five new mineralized north-south trending structures. It encountered 0.06 g/t Au and 49 g/t Ag (53 g/t AgEq) over 0.4m; 0.15 g/t Au and 45 g/t Ag (53 g/t AgEq) over 5.4m; 0.15 g/t Au and 43 g/t Ag (48 g/t AgEq) over 5.3m; and 0.15 g/t Au and 37 g/t Ag (45 g/t AgEq) over 14.7m, including 0.19 g/t Au and 55 g/t Ag (65 g/t AgEq) over 3m, including 0.2 g/t Au and 79 g/t Ag (89 g/t AgEq) over 0.9m. Fabled has completed drill holes SM 20-07 – 09 for a total of 2,134 meters of the ongoing 8,000 meter drilled program completed to date. Holes SM20-07 – 09 have been sampled and submitted to lab for analysis.  Hole SM 20-10 is in progress. 
  • Golden Minerals Company announced expansion drilling at its Rodeo project in Durango. The drill program will consist of 2,000m to test targets adjacent to the current pit with the aim to extend the life of the Rodeo mine well beyond the currently estimated life around 2.5 years.
  • GR Silver Mining Ltd., released assay results from the current core drilling program from its Plomosas property in Sinaloa.  The most significant drill interception was encountered in hole PL121-107 with a shallower intercept of 63 g/t Ag, 0.03 g/t Au, 0.1% Pb, and 0.1% Zn (73 g/t AgEq) over a true width (TW) of 12.9m, including 126 g/t Ag, 0.03 g/t Au, and 0.1% Zn (132 g/t AgEq) over a TW of 4.8m, and a deeper intercept of 377 g/t Ag, 0.23 g/t Au, 0.7% Pb, and 1.5% Zn (466 g/t AgEq) over a TW of 13.5m, including 633 g/t Ag, 0.2 g/t Au, 0.9% Pb, and 1.5% Zn (726 g7t AgEq) over a TW of 4.5m, including 1,987 g/t Ag, 0.58 g/t Au, 1.9% Pb, and 4% Zn (2,218 g/t AgEq) over a TW of 1m.
  • Orla Mining Ltd., provided an update on the construction of its Camino Rojo mine operation in Zacatecas. Orla reported that 94% of the detailed engineering is competed and 93% of the project purchase orders have been made. “Current construction activities include earthworks, installation of the camp and offices, drilling of back-up water wells and site fence erection. Process pond and reclaim tunnel areas are being excavated and foundations are being prepared for the Merrill Crowe plant, crusher, camp, as well as ancillary buildings. The 33-kV power line to site was approved by the Mexican federal electricity commission in 2020 and construction is currently 73% complete. Fabrication of crushing, conveying, and stacking equipment and the Merrill Crowe plant remain on schedule. Process plant equipment began arriving on site in the fourth quarter of 2020. Deliveries thus far include crushing, stacking, conveying equipment and the Merrill Crowe plant as well as heap leach and solution ponds piping and liners”.
  • Sonoro Gold Corp., reported results from 20 RC holes totalling 1,792m drilled at Buena Suerte and Japoneses zones within its flagship property Cerro Caliche in Sonora. Highlights from Buena Suerte area include hole SCR-201 with 0.74 g/t Au over 14m, including 2.09 g/t Au over 1.52m; hole SCR-203 with 0.71 g/t Au over 9m, including 2.04 g/t Au over 1.53m; hole SCR-205 with 0.59 g/t Au over 14m, including 1.53 g/t Au over 1.53m: hole SCR-207 with 0.62 g/t Au over 5m, including 1.3 g/t Au over 1.52m; hole SCR-209 with 0.77 g/t Au over 57m, including 1.79 g/t Au over 1.53m; hole SCR-211 with 4.77 g/t Au over 5m; and hole SCR-219 with 1.43 g/t Au over 16.76m, including 6.47 g/t Au over 1.52m. Highlights from Japoneses area include hole SCR-204 with 1.35 g/t Au over 10.67m, including 6.33 g/t Au over 1.53m; hole SCR-214 with 0.58 g/t Au over 18.29m, including 1.97 g/t Au over 1.52m;  hole SCR-215 with 0.52 g/t Au over 12.2m, hole SCR-218 with 0.5 g/t Au over 22.86m, including 1.95 g/t Au over 1.52m; and hole SCR-220 with 0.53 g/t Au over 22.86m, including 1.84 g/t Au over 1.53m. “Spacing between the Buena Suerte and Japoneses zones has been reduced to approximately 100 meters in the northern extensions indicating the zones may merge with further infill drilling”.
  • Torex Gold Resources Inc., announced results from the 2020 infill drilling program at its Media Luna property in Guerrero. Aim of the infill drilling program is to upgrade the inferred mineral resources to the indicated category. Highlights include hole ML20-407D with 6.16 g/t Au, 79 g/t Ag, and 3.58% Cu (12.73 g/t AuEq) over a true width (TW) of 13.66m; hole ML20-417D with 11.25 g/t Au, 12 g/t Ag, and 0.64% Cu (12.4 g/t AuEq) over a TW of 11.92M; hole ML20-418D with 5.45 g/t Au, 43 g/t Ag, and 2.48% Cu (9.84 g/t AuEq) over a TW of 22.47m; hole ML20-433D with 9.37 g/t Au, 190 g/t Ag, and 6.6% Cu (22.05 g/t AuEq) over a TW of 14.59m; hole ML20-443D with 9.88 g/t Au, 44 g/t Ag, and 1.72% Cu (13.11 g/t AuEq) over a TW of 13.68m; hole ML20-454D with 9.16 g/t Au, 9 g/t Ag, and 0.85% Cu (10.6 g/t AuEq) over a TW of 16.57m; hole ML20-458D with 5.9 g/t Au, 8.7 g/t Ag, and 0.7% Cu (7.11 g/t AuEq) over a TW of 25.47m; and hole ML20-492DA with 25.46 g/t Au, 36 g/t Ag, and 0.83% Cu (27.21 g/t AuEq) over a TW of 22.95m. The infill drilling conducted to date has increased drill density in specific areas of the resource model to an approximate 30-metre spacing (from an approximate 100-metre spacing). The final, upgraded Mineral resource estimate for Media Luna, due for completion in Q1 2022, is expected to provide for a more robust mine plan in the upcoming Feasibility Study.
  • Zacatecas Silver Corp., reported results from the re-sampling of drill core from its Panuco property in Zacatecas being undertake with regards to the resource confirmation process.  A 57 kg sample composite of historic Panuco drill core from one of the higher grade shoots has assayed higher than the grade described in the historic resource, with the sample returning assays of 198 g/t AgEq. (146 g/t Ag, 0.30 g/t Au, 0.13% Zn, and 0.42 % Pb). In addition, a 100Kg composite sample of drill core used in the Panuco resource estimation was sent to the lab for benchmark metallurgical work. Panuco has an historic inferred mineral resource of 19,472,901 Oz AgEq (cut-off 100 g/t AgEq.) from 3,954,729 tonnes at 153 g/t AgEq (136 g/t Ag, 0.14 g/t Au, 0.012% Pb, 0.11% Zn).

ON DEALS AND CORPORATE ISSUES

  • Agnico Eagle Mines Limited announced the appointment of a new member to its Board of Directors (Pinos Altos mine, Chihuahua).
  • Chesapeake Gold Corp., announced the resignation of its Director (Metates property, Durango).
  • GoGold Resources Inc., presented results from its annual general meeting of shareholders (Los Ricos project, Jalisco).
  • Inomin Mines Inc., completed the 100% acquisition of the La Gitana and the Peña Blanca properties in Oaxaca from Gunpoint Exploration Ltd, by exchanging 1M common shares of the Company, $25K cash, and the grant of a 1.5% NSR payable to Gunpoint on the Pena Blanca property (with an option for Inomin to purchase 0.5% of the NSR at any time for $1M). La Gitana is subject to an existing 3% NSR to a third-party which will be assumed by Inomin.
  • Orogen Royalties Inc., appointed a new member to its Board of Directors (El Ermitaño, Sonora).
  • Telson Mining Corporation engaged RB Milestone Group LLC for twelve months to provide corporate communications advisory, non-deal roadshow advisory, market intelligence advisory, and business referrals to the management team of the company (Tahuehueto project, Durango).

ON SOCIAL RESPONSIBILITY

  • AIMMGM Sonora District Ladies Committee sent 790 kilos of plastic caps to the association “Banco de Tapitas”, so that the material is recycled and the proceeds are donated to minors suffering from cancer. Banco de Tapitas A.C. operates throughout Mexico on a non-profit basis, collecting plastic caps to recycle them and generate resources to fund treatments, transfers, medicine and comprehensive support mainly for children with cancer, although it extends its help to people up to 21 years of age.
  • Peñasquito mine (Newmont) awarded scholarships to students of the Ignacio López Rayón elementary school. One of the most important achievements for this school, which has 23 students in the Regular Education Support Unit (three of them with a motor disability), is the construction of two functional ramps for those with this type of disability. One was installed at the entrance of the school and one more within the facilities, so that these students can move freely in their place of study and have autonomy in this space.

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, an outcropping Orogenic Au vein in a project in Sonora, Mexico.  Photo by Miguel A Heredia.

The Mining and Exploration News in Mexico; Highlights on the Third Week of March, 2021

By Jorge Cirett

During the 11h week of the year (March 15th to March 21st, 2021), at least 34 press releases were announced by companies working in Mexico. To note, eight companies posted exploration advances on their properties, four presented quarterly results, five posted on financing or share options (including C$12 M, $10.3 M, C$14.1 M and C$80.4M), eight more on project development and five on corporate issues. ON MEXICO ISSUES, 25 Mining projects in Mexico are in line for 2028. At PDAC, a minister from Canada asked for a stable and predictable business environment in Mexico. The president of Mexico, Andres Manuel Lopez Obrador, threatened mining companies with voiding their concessions if they break the law. ON EXPLORATION, in Baja California, One World Lithium announced the incoming drilling at its Salar del Diablo project. In Sonora, Kootenay Silver informed of excellent grades in trenching at its Maria Elena project; Tocvan Ventures updated on exploration at Pilar; Prismo Metals filed a technical report for Los Pavitos project. In Durango, Mithril Resources informed on a high-grade gold intercept at Copalquin. In Guerrero, Pantera Silver commenced exploration in Nuevo Taxco. In Zacatecas, Zacatecas Silver is preparing a resource estimate on the Panuco deposit.  ON MINING, Comet Resources Excellon Resources, Starcore International and Sierra Metals released quarterly and/or full year 2020 reports. Activities at McEwen’s El Gallo mine in Sinaloa, which is in residual leaching, were suspended by an illegal blockade. ON FINANCING, Empress Royalty, Southern Silver, Almaden Minerals, Santacruz Silver Mining and Premier Gold released news on financing. ON RESOURCES AND DEVELOPMENT, Almaden Minerals is resuming exploration at the Ixtaca property in Puebla. Discovery Metals released drilling results from Cordero in Chihuahua. Chesapeake Gold received approval for a bulk drilling program at Metates, Durango. GoGold Resources released drilling results from Los Ricos North in Jalisco. Southern Silver is doubling the size of its drilling program at Cerro Las Minitas in Durango. Consolidated Zinc released the updated mineral resource for the Plomosas mine in Chihuahua. Prime Mining released drilling results for Los Reyes in Sinaloa. Azucar Minerals released results from drilling at El Cobre, Veracruz. ON DEALS AND CORPORATE ISSUES, Radius Gold optioned the Maricela property in Sonora. Sailfish is to prepare an updated mineral resource for Gavilanes in Durango. VanGold Mining signed the definitive agreement with Endeavour Silver for the acquiring the El Cubo mine in Guanajuato. Tarachi Gold completed the acquisition of El Magistral tailings project. Prospero Silver is changing name to Keon Capital. ON SOCIAL RESPONSIBILITY, Grupo Mexico and Fresnillo PLC informed on actions related to social betterment of communities near its operations.

ON MEXICO ISSUES

  • 25 Mining projects in Mexico are in line for 2028 with a total of US$7.8 B (US$7,800 M in Mexican notation). El Arco in Baja California (US$2,900 M), Media Luna in Guerrero (US$496 M), Expansion Herradura (US$490 M), Orysivo in Chihuahua (US$465 M), Juanicipio in Zacatecas (US$440 M) and Sonora Lithium (US$420 M) are among the largest of these.   
  • At the virtual PDAC (Prospectors and Developers Association of Canada) 2021 conference Mary Ng, Minister of Small Business, Export Promotion and International Trade for Canada and Tatiana Clouthier, head of the Economy Secretariat in Mexico met and spoke about the strengthening of commercial ties between the two countries, particularly in the energy and mining sectors. Minister Ng stressed the need to keep a stable and predictable business environment for Canadian companies working in Mexico, especially in mining, and expressed its worries for the recently approved energy law and its possible negative impact.
  • In his press conference the president highlighted the cases of Americas Gold and Silver, with his view that it is trying to evade the law on unionized work, and that of First Majestic which he accused of trying to evade taxes (as in other industries, the president disregards any effect on investment and employment by his rigid stance). He suggested the Canadian government should help make the companies comply as in Canada.

ON EXPLORATION

  • Pantera Silver Corp. has mobilized its field personnel to the Nuevo Taxco Silver project in Guerrero. The 1,100 hectares project displays 21 veins 150-350 meters in length within a 135 hectares portion of the property. Of 395 historical samples, 119 grade over 100 gpt Ag, including 18 between 500-900 gpt Ag and three samples over 1,000 gpt Ag. An initial 1,600 meter program is to test the 21 veins area.
  • One World Lithium Inc. is to start phase three drilling on April 15, 2021 at is Salar del Diablo project in Baja California. “If the results of DDH-3 warrant, the DDH-4 will be drilled in the same area…. DDH-3 (diamond drill hole) is located approximately 50 kilometers to the south of DDH-2” completed on the previous campaign.
  • Zacatecas Silver Corp. is to prepare a current resource estimate for the Panuco silver deposit at the Zacatecas Silver project in Zacatecas. The historic inferred mineral resource hosts 3.95 M tonnes @ 136 gpt Ag, 0.14 gpt Au, 0.12% Pb, 0.11% Zn (153.2 gpt AgEq), containing 19.5 M Oz Ag. Re-assaying of 15% of the core intervals used in the historic resource calculation is being performed to assist in the new resource estimation, as well as bench scale metallurgical test of mineralized core material.    
  • Kootenay Silver Inc. informed on the discovery of significant gold at its Maria Elena project in Sonora. Highlighted results from sampling in 8 trenches comprise 33 m @ 2.67 gpt Au (including  9 m @ 5.29 gpt Au, 1 m @ 23.7 gpt Au) in trench 6; 24 m @ 1.81 gpt Au (including 8 m @ 3.98 gpt Au, 1 m @ 17.25 gpt Au) in trench 4; 9 m @ 2.01 gpt Au (including 1 m @ 15.45 gpt Au) in trench 2. “Gold mineralization is hosted by stock works of quartz and quartz carbonate veins formed by conjugate sets of veins …. Numerous conjugate vein sets and associated stock work zones occur within a 1.5 by 1.5-kilometer area hosted within a diorite intrusion and are the source of the placer gold historically mined on the property”.
  • Canasil Resources Inc. informed on drilling at La Esperanza project in Zacatecas. Three holes in the La Esperanza  vein have already intersected the vein as projected, while a fourth is in progress. While the vein outcrops for 150 m, it has now been intersected for 525 m along strike and 350 m to depth.
  • Tocvan Ventures Corp. updated on exploration at its Pilar project in Sonora. On the Main Zone Extension, a 350 m section presents “altered vein zones” 5 to 20 m in width, strong oxidation and 800 m of anomalous soil samples with up to 106 and 911 ppb Au, and rock grab samples with 9.3 gpt Au. At the 4-Trench there is a 600 m trend that presents veins for 400 m of strike untested by drilling, rock grab samples with up to 24 gpt Au and historical artisanal workings for 350 m of strike.
  • Mithril Resources Ltd. informed on the drilling at El Refugio target in the Copalquin project in Durango. An exceptional core length interval of 4.17 m @ 62.0 gpt Au, 445 gpt Ag was drilled, and is characterized by abundant black sulfide and kaolinite, as well as by the presence of visible gold.
  • Prismo Metals Inc. filed a NI 43-101 technical report for its Los Pavitos project in Sonora. The 5,289-hectare concession is west of the Alamos district, displaying epithermal low sulfidation veins and orogenic gold shears. Highlighted rock sample results include 0.30 m @ 40.8 gpt Au, 0.65 m @ 4.86 gpt Au, 0.20 m @ 1.57 gpt Au, 2.5 m @ 1.5 gpt Au, 2.5 m @ 2.41 gpt Au, grab samples of up to greater than 10.0 gpt Au and dump samples with up to 5.26 gpt Au.

ON MINING

  • Comet Resources Ltd. presented its second half 2020 financial report. In the period the company spent US$2.35 M in mineral exploration and administration, raised US$3 M, acquired the Santa Teresa project in Baja California with 88.6 K Oz Au JORC compliant inferred resources.
  • McEwen Mining Inc. informed that activities at the El Gallo project in Sinaloa (currently on residual leaching) have been suspended as results of an illegal blockade of the main access to the property by members of nearby communities. “El Gallo has operated harmoniously with the local communities since mining started in 2012, having demonstrated a long-standing track record of supporting local communities. In this context, the current situation is surprising. The site remains minimally staffed to maintain appropriate safety and security, and the environmental systems. McEwen Mining is negotiating for a peaceful resolution to the issues”.
  • Excellon Resources Inc. reported financial results for the Q4 and full year 2020. During the quarter silver production at the Platosa mine in Durango increased to 355.6 K Oz, the strongest production since 2014, at an all-sustaining cost of $21.19 per Oz Ag. For the year, the revenue of $26.2 M was impacted by the temporary suspension related to the Covid pandemic. On the second half of the year 43.3 K tonnes were mined, producing 1.08 M Oz Ag.
  • Starcore International Mines Ltd. reported results for the quarter ended in January 2021. At the San Martin mine in Queretaro, 57.3 K tonnes were milled @ 1.66 gpt Au, 23 gpt Ag, recovering 88.8% Au, 57.1% Ag, to produce 2.7 K Oz Au, 23.8 K Oz Ag or 3,063 Oz AuEq at cash cost US$1,042 per Oz AuEq and an AISC of US$1,361 per Oz AuEq.
  • Mexus Gold US. Informed it has received the necessary explosives permit to mine the high grade Mexus II and Julio vein structures at its Santa Elena mine in Sonora.
  • Sierra Metals Inc. reported financial results for 2020. At Bolivar in Chihuahua, cash cost per CuEq Lb was $1.35 and AISC per CuEqLb was $1.88. At Cusi in Chihuahua, cash cost per AgEqOz was $15.70 and AISC per AgEqOz was $28.18. The company hold cash and cash equivalents of $71.5 M at the end of the period.

ON FINANCING

  • Empress Royalty Corp. entered into an agreement with Red Cloud Securities Inc. and Canaccord Genuity Corp. and a syndicate of underwriters that shall purchase shares of the company for gross proceeds of C$12 M. (Pinos, Zacatecas).
  • Endeavour Silver Corp. announced its common shares will be added to the S&P/TSX Composite and the NYSE Arca Gold Miners Index (Terronera, Jalisco).
  • Southern Silver Exploration Corp. raised $14.2 million in Summer of 2020. “Since the closing of the equity raise and the working interest purchase in September 2020, the Company has received a total of $2,428,228 from shareholder exercises of share purchase warrants, inclusive of the recent 6,000,000 share purchase warrant exercise by Electrum Global Holdings LP for proceeds of $480,000. Additionally, the Company has received $477,470 from the exercise of incentive stock options and finders’ warrants”.
  • Almaden Minerals Ltd. announced a US$10.3 M registered direct offering (Ixtaca, Puebla).
  • Santacruz Silver Mining Ltd. has increased the size of its previously announced non-brokered private placement offering, intending to raise now up to CDN$14.1 M (Zimapan, Hidalgo).
  • Premier Gold Mines Ltd. announced its wholly-owned subsidiary i-80 Gold Corp. closed its previously publicized private placement for aggregate gross proceeds of C80.4 M. “Premier remains focused on creating i-80 as a Nevada-focused mining company…” (Mercedes, Sonora).
  • Minera Alamos Inc. informed the board of directors approved the issuance of 7.25 M options to management, directors, employees and consultants, tied to production milestones (Santana, Sonora).
  • First Majestic Silver Corp. received regulatory consent to extend its share repurchase program to up to 10 M shares or 4.5% of the outstanding shares of the company (San Dimas, Durango).

ON RESOURCES AND DEVELOPMENT

  • Almaden Minerals Ltd. has resumed exploration in the area of the Ixtaca project in Puebla. Initial work is to focus in identifying drill targets in the SE Alteration Zone, 1 km SE from the Ixtaca deposit. Argillic alteration with hyperspectral signatures for kaolinite, alunite and buddingtonite is present, along with several areas of veining with anomalous pathfinder elements.
  • Discovery Metals Corp. announced results from 14 diamond drill holes targeting high-grade veins at its Cordero project in Chihuahua. Highlighted intercepts comprise 1.3 m @ 1,581 gpt Ag, 0.15 gpt Au, 9.9% Pb, 5.4% Zn; 8.9 m @ 267 gpt Ag, 0.91 gpt Au, 0.9% Pb, 0.8% Zn (including 1.0 m @ 1,280 gpt Ag, 4.24 gpt Au, 1.6% Pb, 3.4% Zn); 1.3 m @ 1,607 gpt Ag, 2.06 gpt Au, 5.2% Pb, 8.0% Zn; 10.0 m @ 92 gpt Ag, 0.09 gpt Au, 2.4% Pb, 3.4% Zn in the Josefina vein; 2.9 m @ 992 gpt Ag, 0.73 gpt Au, 12.9% Pb, 2.4% Zn in the South corridor and 4.0m @ 377 gpt Ag, 0.28 gpt Au, 7.1% Pb, 2.7% Zn (including 1.4 m @ 552 gpt Ag, 0.33 gpt Au, 11.0% Pb, 3.4% Zn); 1.2 m @ 241 gpt Ag, 0.52 gpt Au, 4.6% Pb, 10.4% Zn; 2.8 m @ 207 gpt Ag, 0.15 gpt Au, 3.7% Pb, 7.7% Zn on the Todos Santos vein. “The Company has completed 58,600 m (148 holes) as part of its expanded 65,000 m Phase 1 drill program. Assays from 24 holes are pending”.
  • Chesapeake Gold Corp. has received the final permits to commence a bulk drilling program at the Metates project in Durango. The company plans to drill 2,500 meters to recover 10 tonnes of large diameter (PQ) core for metallurgical testing to support a potential sulfide heap leach mine operation.
  • GoGold Resources Inc. released results from four more drill holes on the Casados area of the Los Ricos North project in Jalisco. Highlighted core length results comprise 10.3 m @ 0.43 gpt Au, 116 gpt Ag; 21.4 m @ 0.44 gpt Au, 98 gpt Ag; 49.1 m @ 0.54 gpt Au, 250 gpt Ag; 13.3 m @ 0.67 gpt Au, 204 gpt Ag; 5.1 m @ 1.94 gpt Au, 1,270 gpt Ag (including 0.8 m @ 10.31 gpt Au, 6,842 gpt Ag; 52.0 m @ 0.47 gpt Au, 127 gpt Ag; 8.3 m @ 0.94 gpt Au, 279 gpt Ag; 23.6 m @ 0.58 gpt Au, 156 gpt Ag (including 10.9 m @ 1.05 gpt Au, 307 gpt Ag); 33.6 m @ 0.23 gpt Au, 95 gpt Ag. The Casados vein dips 45 degrees, is hosted in andesitic tuffs and is exposed for 400 m in the surface.
  • Southern Silver Exploration Corp. is doubling the size of the current drilling program from 10,000 m to 20,000 m on the Cerro Las Minitas project in Durango. The current program has completed 28 core holes totaling 12,040 m since September 2020. “Drilling will continue with two drills targeting the east side of the Cerro where to date three near-surface sulphide lenses with Bonanza-grades of silver have been identified”. Assays from 11 drill holes are pending.
  • Consolidated Zinc Ltd. announced its updated mineral resource for the Plomosas project in Chihuahua. The resource estimate is JORC compliant and contains indicated mineral resources of 152 K tonnes @ 13.3% Zn, 6.0% Pb, 33.6 gpt Ag containing 20.2 K tonnes Zn, 9.1 K tonnes Pb, 164.6 K Oz Ag and inferred resources of 788 K tonnes @ 13.0% Zn, 2.9% Pb, 17.2 gpt Ag containing 102.1 K tonnes Zn, 22.7 K tonnes Pb, 435.5 K Oz Ag.
  • Prime Mining Corp. reported initial results from its 15,000 m drilling program at Los Reyes, in Sinaloa. The first hole at Guadalupe East intersected 20.1 m @ 3.25 gpt Au, 380 gpt Ag (including 6.5 m @ 6.51 gpt Au, 587 gpt Ag), this intercept is 150 m below any previous drilling; 3.8 m @ 3.69 gpt Au, 305 gpt Ag (including 2.1 m @ 6.18 gpt Au, 507 gpt Ag). Chip sampling of adularia bearing banded quartz veins in a new area returned several mineralized intervals, including 3 m @ 29.8 gpt Au, 1,132 gpt Ag.
  • Azucar Minerals Ltd. released results from drilling at the Porvenir zone at the El Cobre project in Veracruz. Some of the highlighted results comprise 77.65 m @ 0.26 gpt Au, 0.16% Cu (including 43.55 m @ 0.37 gpt Au, 0.21% Cu and 25.55 m @ 0.45 gpt Au, 0.23% Cu) in one hole and 16.70 m @ 0.10 gpt Au, 0.09% Cu; 37.00 m @ 0.12 gpt Au, 0.08% Cu.

ON DEALS AND CORPORATE ISSUES

  • Radius Gold Inc. has optioned the Maricela group of properties (155 ha) in Sonora. Radius can earn 100% interest in the property by paying US$1.25 M over three years. A total of US$30 K has been paid to date. The owner retains a 1% NSR which can be bought back for US$1 M. Mineralization is of low sulfidation epithermal style with 1-3 m massive quartz veins and stockworks over 10 meters in width hosted in andesitic volcanic rocks and felsic dykes emplaced sub-parallel to mineralized structures.
  • Sailfish Royalty Corp. announced on early February “that Mine Development Associates (“MDA”), a division of RESPEC, out of Reno, Nevada, was hired to prepare an updated mineral resource estimate on Gavilanes. The updated mineral resource estimate is a key milestone for the planned spinout of Gavilanes and the Company is pleased to report that MDA is expecting to complete their work in early Q2 2021”.
  • VanGold Mining Corp. signed a definitive purchase agreement with Endeavour Silver Corp. to acquire El Cubo mine and mill complex located 8 km from its El Pinguico project in Guanajuato. “According to the Company’s recently announced PEA from Behre Dolbear and Company (USA) Inc., (“Behre”) the Combined Project contains total indicated resources of 718,655 tonnes grading 160 gpt Ag and 1.90 gpt Au, or 306 gpt AgEq, which equates to 7.2 M oz AgEq; and total inferred resources of 1,453,000 tonnes grading 214 gpt Ag and 2.78 gpt Au, or 435 gpt AgEq, which equates to 20.4 M oz AgEq”. VanGold will pay $15 M as follows: $500 K (paid), $7 M on closing, anticipated to by the end of March 2021, $5 M on VanGold shares on closing and $2.5 M in promissory notes due 12 months from closing.
  • Tarachi Gold Corp. completed the acquisition from Manto Resources S.A. de C.V. of the Magistral mill and tailings project in Durango. A PEA is to be conducted to determine if modifications are needed on the mill’s flowsheet prior to commissioning. The tailings basin is to be tested with an auger drill rig, with six confirmation holes and eleven in-fill holes. Underground diamond core drilling has been progressing on the Jabali concession at its Tarachi project in Sonora.
  • Prospero Silver Corp. board of directors has approved the name change of the company to Keon Capital Inc., subject to the acceptance of the TSX Venture Exchange (Bermudez, Chihuahua).

ON SOCIAL RESPONSIBILITY

  • Fundación Grupo México and Granjas Carroll delivered fruit bearing trees to producers in Puebla.
  • Minera San Julian donated medical equipment in Chihuahua.

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

On the image below:  Core from Azure Mineral’s Oposura project in Sonora. Picture by Jorge Cirett.

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

Rich-hematite quartz hydrothermal breccia

By Miguel A Heredia

During the tenth week of the year (March 8th to March 148th, 2021), at least 26 press releases were announced by companies working in Mexico and 1 news published by the media, with ten informing on exploration results, six disclosing deals and corporate issues, five reporting on resources and development of their mine operations, two announcing financial rounds, two communicating production and financial results, one discussing social issues and one commenting on Mexican issues.  ON MEXICO ISSUES, First Majestic responded to the several inaccurate and misleading Mexican media articles that have been recently published regarding the ongoing tax dispute with the Government of Mexico (San Dimas mine, Durango).  ON EXPLORATION, In Sonora, Canuc released results of 168 channel chips samples collected at its San Javier project, Silver Spruce and its JV Partner Colibri filed an environmental report for a drilling permit at its Mezquite project, Silver Tiger presented drill results from its El Tigre project, Silver Viper announced drilling results from the last two holes collared at its La Virginia project, and Sonoro reported the latest assay results from its ongoing drill program at its Cerro Caliche project.  In Chihuahua, Gatos Silver commenced a 5,400m drilling program in eighteen holes to test initial targets at its Santa Valeria project located 5km east of its Los Gatos mine.  In Durango, Mithril provided an update on exploration activities carried out at its Copalquin project. In Jalisco, GoGold released results from five holes collared at El Orito Zone within its Los Ricos South project. ON MINING, Fortuna Silver reported Q4 and full year 2020 production and financial results from its San Jose mine in Oaxaca. McEwen announced Q4 and full year 2020 production and financial results from its Los Gallos mine in Sinaloa. ON FINANCING, Gatos Silver reached a definitive agreement with Dowa to increase Los Gatos JV ownership to 70% (Los Gatos mine, Chihuahua). VanGold closed a non-brokered private placement for gross proceeds of $16.95M (El Pinguico and El Cubo properties, Guanajuato).  ON RESOURCES AND DEVELOPMENT, Avino increased its exploration program for 2021 and now will drill 36,000m instead of the previously planned 12,000 at its Avino mine in Durango. Capitan Mining presented drilling results from its Peñoles project in Durango. Consolidated Zinc announced that the crushing commissioning system has commenced at its wholly owned Plomosas plant in Chihuahua.  Fabled released drill results from two holes collared at its Santa Maria project in Chihuahua. Prime filed an application for 7,500 hectares of mineral rights at its Los Reyes property in Sinaloa and commenced a property-wide 1,000 line-kilometer helicopter-borne high resolution aeromagnetic survey over the Los Reyes property. ON DEALS AND CORPORATE ISSUES, Advance Gold signed a purchase agreement to acquire lithium prospective salars in central Mexico as well as the acquisition of a pilot plant. Discovery Metals appointed a new member to its Board of Directors (Cordero project, Chihuahua). Empress Royalty announced that its common shares are eligible for delivery and depository services with the Depository Trust Company to facilitate electronic settlement of transfers of its common shares in the United States (Pinos project, Zacatecas). Gainey announced name change to Masivo Silver Corp (El Colomo, Nayarit). Minaurum entered into an option agreement with ASR Resources to sell 80% of its Adelita project in Sonora. Red Oak announced it was reactivated on the TSX Venture Exchange under the new name Pantera Silver Corp (Nuevo Taxco property, Guerrero). ON SOCIAL RESPONSIBILITY, Fresnillo plc and Larousse have delivered more than seven thousand books in Fresnillo, Zacatecas to youngest members of the household to become interested in reading.

ON MEXICO ISSUES

  • First Majestic Silver Corp., responded to the several inaccurate and misleading Mexican media articles that have been recently published regarding the ongoing tax dispute with the Government of Mexico (San Dimas mine, Durango).

ON EXPLORATION

  • Canuc Resources Corporation, released results of 168 channel chips samples collected from outcrop and small underground workings at its San Javier project. The samples were channel chips ranging from 0.5 to 3.0 meters in length. Over the Northwest Anomaly Area,   a total of 52 samples were collected with an average of  70 g/t Ag, including a value of 718 g/t Ag, 0.81 g/t Au and 1.03% Cu from a sample collected from an old pit overlying the magnetic anomaly. At the Mill-Rock Anomaly Area, characterized by a stockwork and breccia zone covering a strong magnetic high, a total of 75 samples were collected. The average grade was 0.7 g/t Ag, with a highest value of 4.5 g/t Ag, 1.18 g/t Au and 0.45% Cu. At the Southwest Anomaly Area , 19 samples were collected  and averaged 23 g/t Ag and 0.56 g/t Au, with a highest value of 62 g/t Ag, 3.06 g/t Au and 439 ppm Cu. “A diamond drill has been mobilized to the project and has recently commenced drilling on a breccia zone magnetic anomaly which accompanies high-grade silver values, as reported on previously”. 
  • Silver Spruce Resources Inc., filed an environmental report (Informe Preventivo) for drilling permit at its Mezquite project. “The Company intends to conduct an initial 1,500- 2,000 metre diamond drill program to test targets where high grades of mineralization are sampled at surface, with a follow-up Phase 2 drilling program where results warrant. The Company will move forward with logistics planning and drill contractor selection while looking forward to the receipt of geochemistry results and the Informe Preventivo for the project.”
  • Silver Tiger Metals Inc., presented drill results from its El Tigre project in Sonora. Significant drill intercepts were encountered in hole ET-21-203 with 0.07 g/t Au, 154 g/t Ag, 0.21% Cu, 0.1% Pb, and 0.01% Zn (183 g/t AgEq) over 1.2m, and 0.06 g/t Au, 149 g/t Ag, 0.06% Cu, 0.11% Pb, and 0.08% Zn (164 g/t AgEq) over 1.4m on Sooy Vein, as well as  0.22 g/t Au, 556 g/t Ag, 0.51% Cu, 0.45% Pb, 0.20% Zn (638 g/t AgEq) over 9.3m, including 0.56 g/t Au, 1,709 g/t Ag, 1.53% Cu, 1.18% Pb, and 0.44% Zn (1,941 g/t AgEq) over 2.9m on the Footwall Zone; and hole ET-21-07 with 0.18 g/t Au, 670 g/t Ag, 1.04% Cu, 0.68% Pb, and 0.3% Zn over 4.6m, including 0.60 g/t Au, 2,211 g/t Ag, 3.4% Cu, 2.18% Pb, and 0.69% Zn (2,658 g/t AgEq) over 1.3m and 0.08 g/t Au, 291 g/t Ag, 0.67% Cu, 0.06% Pb, and 0.18% Zn (369 g/t AgEq) over 1.8m. The significance of these 2 new holes is that Silver Tiger has followed and confirmed the new “Footwall Discovery Zone” for an initial strike length of 75m to the south of hole ET-21-202, showing a similar strike to the Sooy vein and has some dimension and scale with potentially mineable widths and grades.
  • Silver Viper Minerals Corp., announced drilling results from the last two holes collared at its La Virginia project. Hole LV21-290 intersected several mineralized intervals commencing with 2.6 g/t Au and 54 g/t Ag (3.13 g/t AuEq or 219 g/t AgEq) over a true width (TW) of 4.3m, including 9.2 g(t Au and 242 g/t Ag (12.7 g/t AuEq or 886 g/t AgEq) over a TW of 0.72m, another sub-interval of 2.43 g/t Au and 88 g/t Ag (3.68 g/t AuEq or 258 g/t AgEq) over a TW of 20.1m, including 3.36 g/t Au and 134 g/t Ag (5.27 g/t AuEq or 369 g/t AgEq) over a TW of 7.3m, including 6.11 g/t Au and 239 g/t Ag (9.52 g/t AuEq or 667 g/t AgEq) over a TW of 2.15m, including 10.3 g/t Au and 491 g/t Ag (17.3 g/t AuEq or 1,212 g/t AgEq) over a TW of 0.72m. This hole also encountered 2.34 g/t Au and 77 g/t Ag (3.45 g/t AuEq or 241 g/t AgEq) over a TW of 10.32m, including 11.1 g/t Au and 351 g/t Ag (16.1 g/t AuEq or 1,128 g/t AgEq) over a TW of 0.72m. Hole LV21-291 intersected 8.1 g/t Au and 225 g/t Ag (11.3 g/t AuEq or 792 g/t AgEq) over a TW of 1.5m and a deeper intercept of 0.51 g/t Au and 25 g/t Ag (0.88 g/t AuEq or 61 g/t AgEq) over a TW of 4.5m.
  • Sonoro Gold Corp., reported the latest assay results from its ongoing drill program at its Cerro Caliche project. These results are from 32 holes totalling 2,830m. Highlights include confirmation of a 200mlong, high-grade zone in the northwest extension of Buena Suerte, confirmation of continuous mineralization at the 2km long El Rincon-Veta de Oro-Abejas vein and stockwork gold mineralized zone, and further extension to the new Bellotoso gold mineralized zone through  step-out drilling. Assay highlights include hole SCR-186 collared at Buena Suerte with 1.21 g/t Au over 24.39m, including   1.85 g/t Au over 13.72m;  and hole SCR-198 collared at Los Japoneses Zone with 0.46 g/t Au over 19.81m.
  • Gatos Silver Inc., commenced a 5,400m drilling program in eighteen holes to test initial targets at its Santa Valeria project located 5km east of its Los Gatos mine in Chihuahua. Santa Valeria appears to have similar geologic setting to the Cerro Los Gatos deposit on the eastern flank of the same sedimentary basin.
  • Mithril Resources Ltd., provided an update on exploration activities carried out at its Copalquin project. The company completed twelve diamond drill holes at El Refugio, La Soledad and Los Reyes targets, with several holes intercepting the targeted geological structures. It also completed an extensive soil sampling program at the Cometa and Los Reyes targets. Assay results are pending.
  • GoGold Resources Inc., released results from five holes collared at El Orito Zone within its Los Ricos South project. Hole LRGO-21-007 intersected 0.28 g/t Au, 61 g/t Ag, 0.07% Cu, 0.56% Pb, and 0.58% Zn (121 g/t AgEq) over 12.5m, including 1.29 g/t Au, 172 g/t Ag, 0.20% Cu, 1.3% Pb, and 1.4% Zn (366 g/t AgEq) over 1.6m; hole LRGO-010 with 0.39 g/t Au, 117 g/t Ag, 0.42% Cu, 5.9% Pb, and 0.6% Zn (348 g/t AgEq) over 6.6m, including 0.18 g/t Au, 150 g/t Ag, 0.63% Cu, 11.6% Pb, and 0.8% Zn (523 g/t AgEq) over 3m; and hole LRGO-21-014 with 0.31 g/t Au, 236 g/t Ag, 0.23% Cu, 2.5% Pb, and 3.6% Zn (460 g/t AgEq) over 9.8m, including 0.66 g/t Au, 577 g/t Ag, 0.24% Cu, 2.2% Pb, and 4.3% Zn (845 g/t AgEq) over 3.5m. Holes drilled at El Orito have shown mineralization averaging 50m in width over 600m in strike length and 200m in vertical depth from surface, and is open in all directions.

ON MINING

  • Fortuna Silver Mines Inc., reported Q4 and full year 2020 production and financial results from its San Jose mine in Oaxaca. In Q4, 2020 Fortuna milled 272,179 tonnes of 206 g/t and 1.26 g/t Au to produce 1.65M Oz Ag and 10K Oz Au with metallurgical recoveries of 91% in both metals. The company sold 1.7M Oz Ag and 10.6K Oz Au. Production and AISC were USD $8.91 and USD $14.52 per Oz AgEq. During the full year 2020, Fortuna milled 934,381 tonnes of 224 g/t Ag and 1.38 g/t Au to produce 6.16M Oz Ag and 37.8K Oz Au with metallurgical recoveries of 92% and 91% respectively. The company sold 6.22M Oz Ag and 38.4K Oz Au. Production and AISC were USD $6.74 and USD $9.83 per Oz AgEq respectively.
  • McEwen Mining Inc., announced Q4 and full year 2020 production and financial results from its Los Gallos mine in Sinaloa. The company produced 1,500 GEOs (Oz AuEq) during Q4, 2020 and produced 8,000 GEOs in the full year 2020 from residual leaching. Guidance for the year 2020 is to produce between 4,500-5,900 GEOs.

ON FINANCING

  • Gatos Silver Inc., reached a definitive agreement with Dowa Metals & Mining Co., Ltd to increase Los Gatos JV ownership to 70% (Los Gatos mine, Chihuahua). Gatos Silver repurchased 18.5% of the Los Gatos JV to increase its interest from 51.5 to 70% and extinguish the Los Gatos JV´s USD $60M working capital facility. Now, Gatos Silver´s attributable portion of the working capital facility is USD $42M. Gatos Silver and Dowa expect the repurchase and working capital facility extinguishment to be completed by the end of March 2021.
  • VanGold Mining Corp., closed a non-brokered private placement for gross proceeds of $16.95M. The net proceeds of the private placement will be used to, among other things, complete the acquisition and refurbishment of the El Cubo mine and mill near Guanajuato, Mexico, carry out additional exploration and definition drilling at El Cubo and El Pinguico and fund general corporate and working capital expenditures.   

ON RESOURCES AND DEVELOPMENT

  • Avino Silver & Gold Mines Ltd., increased its exploration program for 2021 and now will drill 36,000m instead of the previously planned 12,000 at its Avino mine in Durango. It will consist of 18,600m to explore high-grade narrow-vein mineralized systems similar to the previous mined San Gonzalo system, and 12,000m at the Oxide Tailings resource. Budgeted capital expenditures for 2021 are now expected to be between USD $9M and USD $11M, up from the original budget of between USD $6M and USD $8M.
  • Capitan Mining Inc., presented ongoing results from its previously announced 6,000m drilling program at its Peñoles project in Durango.  RC Hole 21-CARC-19 intersected 0.32 g/t Au and 6 g/t Ag (0.40 g/t AuEq) over 33.5m, and RC Hole 21-CARC-20 intersected 0.14 g/t Au over 18.3m, including 0.26 g(t Au over 16.8m. “RC Holes 21-CARC-19 and 20 extended mineralized zones along strike (to the west) as well as down-dip, and showed improving grades and widths. Expansion drilling program continues, with new drilling focused on expanding the Capitan Zone along strike to the east. Mineralization remains open along strike and at depth”.
  • Consolidated Zinc Limited announced that the crushing commissioning system has commenced at its wholly owned Plomosas plant in Chihuahua. “The mill and wet end of the plant will be commissioned from 13 March 2021 and, as CZL has over two years’ experience in optimizing processing of Plomosas plant feeds, a short commissioning period is expected”. Processing at Aldama will continue at similar rates to the Q4, 2020, in conjunction with Plomosas plant, to increase revenues and reduce stockpiles. A new specialized haul truck has been purchased for Plomosas to increase ore haulage rates.
  • Fabled Silver Gold Corp., released drill results from two holes collared at its Santa Maria project in Chihuahua. Hole SM20-05 encountered 0.57 g/t Au and 203 g/t Ag (232 g/t AgEq) over 2.20m, including 0.76 g/t Au and 245 g/t Ag (284 g/t AgEq) over 1.60m. This hole also intercepted deeper mineralized intervals such as 0.3 g/t Au and 147 g/t Ag (163 g/t AgEq) over 0.55m, and 0.25 g/t Au and 79 g/t Ag (92 g/t AgEq) over 1.40m. Fabled has completed drill holes SM20-06 – 09 for a total of 2,134 meters of the ongoing 8,000 meter drilled program completed to date. Holes SM20-06 – 09 have been sampled and submitted to lab for analysis. Hole SM 20-10 is in progress.
  • Prime Mining Corp., filed an application for 7,500 hectares of mineral rights at its Los Reyes property in Sinaloa to increase its land position to 13,800 hectares. This concession called El Rey is adjacent to the eastern and northeastern Los Reyes boundary. The company also commenced a property-wide 1,000 line-kilometer helicopter-borne high resolution aeromagnetic survey over the Los Reyes property. Once the airborne geophysical survey is completed, Prime will conduct a LIDAR and Ortophoto survey aid in the ongoing geological mapping of the Los Reyes property and provide critical information on the numerous partially tested and untested structures that host Au-Ag epithermal veins.

ON DEALS AND CORPORATE ISSUES

  • Advance Gold Corp., signed a purchase agreement with Hot Spring Mining to acquire 90% of 13 lithium-potassium-boron prospective salars in central Mexico (Zacatecas and San Luis Potosi States) as well as the acquisition of a pilot plant and a patented extraction method. Hot Spring will retain 10% carried interest to production that will convert to a participating interest upon commercial production. Advance will pay 5M shares upon regular approval of the deal. Advance will purchase the test plant built by Hot Spring for USD $150Kwithin 2 years and will have exclusive rights to proprietary lithium extraction method that has been patented. In the event of a sale of either the mining rights or Advance’s subsidiary, Advance Mexico, 75% of the proceeds will go to Advance Gold and 25% to Hot Spring Mining.
  • Discovery Metals Corp., appointed a new member to its Board of Directors (Cordero project, Chihuahua).
  • Empress Royalty Corp., announced that its common shares are eligible for delivery and depository services with the Depository Trust Company to facilitate electronic settlement of transfers of its common shares in the United States (Pinos project, Zacatecas).
  • Gainey Capital Corp., announced name change effective on March 1, 2021 to Masivo Silver Corp., with a new trading symbol of “MASS” on the TSX Venture Exchange (El Colomo, Nayarit).  
  • Minaurum Gold Inc., entered into an option agreement with ASR Resources Corp.  to sell 80% of its Adelita project in Sonora. ASR can acquire 80% interest in Adelita by issuing shares totalling 16% of its post-IPO shares outstanding, making cash payments totaling  $75K, and incurring $3M in work expenditures over 5 years. Minaurum’s 20% retained interest will be carried until ASR carries out a total of  $4.75M in work expenditures along with completing both a mineral resource calculation in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects and a Preliminary Economic Assessment.
  • Red Oak Mining Corp., announced it was reactivated on the TSX Venture Exchange under the new name Pantera Silver Corp with the ticker symbol “PNTR”. The reactivation on the TSX Venture Exchange was approved as a result of the Company filing a National Instrument43-101 Technical Report entitled the “NI 43-101 Technical Report for Nuevo Taxco Project; Tetipac Municipality, Guerrero State, Mexico” with an effective date of December 7th, 2020.  

ON SOCIAL RESPONSIBILITY

  • Fresnillo plc and Larousse have delivered more than seven thousand books in Fresnillo, Zacatecas to youngest members of the household to become interested in reading. The mining company has given exemplary gifts in the communities in which it operates on different disciplines such as mathematics, Spanish, as well as Spanish and bilingual dictionaries.

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

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

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

By Miguel A Heredia

During the fourth week of the year (February 22th to February 28th, 2021), at least 39 press releases were announced by companies working in Mexico and 7 news published by the media, with eleven announcing financial rounds, nine reporting  on resources and development of their mine operations, seven disclosing deals and corporate issues, six commenting on Mexican issues, five informing on exploration results, five discussing social issues, and three communicating production and financial results.  ON MEXICO ISSUES, Mining and Steel companies resumed activities after power outage. Mining is on alert for the possibility that the Mexican Congress approves the initiative of President Andrés Manuel López Obrador to modify the Electricity Industry Law and favor Federal Electricity Commission (CFE). Los Gatos Silver announced restoration of full grid power at its Cerro Los Gatos mine in Chihuahua. According to the Fraser Institute, Chile, Peru, and Mexico have lost global appeal for mining investment. According to Fresnillo plc, half of the electricity used by the La Herradura mine in Sonora comes from clean energy. The president of Mexico, Andrés Manuel López Obrador, has remained firm in his decision not to grant new mining concessions, a measure that has been described as one of the main challenges for the sector.  ON EXPLORATION, In Sonora, Aztec Minerals and its JV partner Kootenay commenced 2021 exploration program at its Cervantes project, and SilverCrest released drill results from its Picacho project. In Nayarit, Xali delineated new drill targets at its El Dorado project. In Jalisco, GoGold released drill results from 12 holes collared at its Los Ricos North project.  ON MINING, Capstone informed that it is on track for ramp-up to 3,780 tonnes per day at its Cozamine mine in Zacatecas by end of Q1, 2021, and reported Q4 and full-year 2020 production and financial results. Gold Resource reported full year 2020 production and financial results from its Don David mine in Oaxaca. Torex announced Q4, 2020 and full year 2020 production and financial results from its Limon-Los Guajes mine complex in Guerrero.  ON FINANCING, Carlyle granted stock options to directors and consultants (Cecilia project, Sonora). Coeur announced its intention to offer USD $350M of senior notes due 2029 (Palmarejo mine, Chihuahua). Capstone closed a USD $150M silver stream agreement with Wheaton Precious Metals (Cozamine mine, Zacatecas). Discovery Metals announced that an aggregate of 31,140,000 common share purchase warrants were exercised (Cordero project, Chihuahua). Fabled announced an exercise of warrants for gross proceeds of $4,150,000 (Santa Maria property, Chihuahua). Orla completed layback agreement with Fresnillo on its Camino Rojo project in Zacatecas. Santacruz, through its subsidiary Carrizal Mining, entered into a definitive agreement with Minera Cedros, a subsidiary of Industrias Peñoles, to acquire the Zimapan mine in Hidalgo. SilverCrest completed its previously announced bought deal offering for gross proceeds of USD $138,069,000 (Las Chispas project, Sonora). Telson executed a LOI with Accendo Banco to provide financing up to USD $25M to complete the construction of its Tahuehueto mine in Durango, and also granted stock options to certain directors, officers, and insiders.  ON RESOURCES AND DEVELOPMENT, Alamos Gold reported minerals reserves and resources for the year-ended 2020 (Mulatos mine, Sonora). Aloro informed that Alamos Gold has initiated its field exploration program on its Los Venados project in Sonora. Chesapeake presented its 2021 work program at its Metates project in Durango. Excellon released results from underground expansion and exploration drilling from its Platosa property in Durango. Fabled released results from the third drill hole collared at its Santa Maria property in Chihuahua. GR Silver announced that it is conducting a ground geophysics program at its San Marcial project in Sinaloa, incorporating magnetometry and 3D IP. Orogen provided an update on its Ermitaño property in Sonora. Prime announced that a fifth core drill rig has been added at Los Reyes project, Sinaloa. Xtierra released drill results from two holes collared at the Victor Vein at its Bilbao deposit in Zacatecas.  ON DEALS AND CORPORATE ISSUES, Barksdale announced the appointment of its Corporate Secretary as well as the grant of stock options to directors, employees and consultants. Colibri signed an option agreement with Bimsa to acquire 100% interest in the Diamante gold project in Sonora. Equinox announced that shareholders and optionholders of Premier approved the acquisition (Mercedes mine, Sonora). GR Silver announced the appointment of its VP Corporate Comminications (Plomosas property, Sinaloa). Autlan announced the appointment of its CEO (Molango mine, Hidalgo). US Antimony announced that trading of its common shares at the New York Stock Exchange (NYSE) has been halted. VanGold announced the appointment of Ramón Dávila to join to its Advisory Board (Pinguico property, Guanajuato).   ON SOCIAL RESPONSIBILITY, Fresnillo plc through its San Julian mine reinforced sanitary measures with campaign in Guadalupe and Calvo, Chihuahua. Minera Media Luna (Torex Gold) and the Universidad de Guerrero signed an environmental monitoring agreement (Limon-Guajes mine complex, Guerrero). Minera Peñasquito (Newmont) donated ventilators to the Medical Specialties Unit (UNEME) in Zacatecas. Mina Santa Elena (First Majestic) donated rapid COVID 19 antigen tests and face masks to municipalities of Baviácora, Aconchi, San Felipe de Jesús, Huépac, Banámichi, and Arizpe in Sonora.

ON MEXICO ISSUES

  • Mining and Steel companies operating in Mexico resumed activities after power outage. The companies normalized their operations after the energy deficit caused by the polar wave in Texas affected their operations. Local operations in the silver, gold, coal and iron mines were suspended or restricted after the US state halting natural gas exports amid a historic winter storm. The interruption of natural gas shipments has generated calls for Mexico to invest in gas storage and diversify its energy matrix.
  • Mining is on alert for the possibility that the Mexican Congress approves the initiative of President Andrés Manuel López Obrador (AMLO) to modify the Electricity Industry Law and favor Federal Electricity Commission (CFE). AMLO said that he will seek to get his proposal approved without changing a single comma. The government last week began a campaign to emphasize the alleged damage that the actions of the IP have brought to the company headed by Manuel Bartlett. Mining is one of the industries that will be affected. Simply the companies that invested in self-supply projects managed to lower the cost of the fluid from 12 or 13 cents of a kilowatt (kw) / hour to 6.5 cents. Those that depend on CFE pay between 8 and 9 cents per kw / hour, far from the level of their competitors in Peru or Chile, which are at 6 cents, let alone those in the US at 4 cents and Canada 2 cents.
  • Los Gatos Silver Inc., announced restoration of full grid power at its Cerro Los Gatos mine in Chihuahua. Given the expedited restoration of full grid power, the outage has had minimal impact on the Company’s mining and processing activities.
  • According to the Fraser Institute, Chile, Peru, and Mexico have lost global appeal for mining investment. In Mexico, concerns about the policies of President Andrés Manuel López Obrador explain the reason for his fall from 4 positions in attractiveness to invest, to place 42. In perception of its policies, it was located in a weak 61st place after descending 10 notches. “The Federal Government is hostile towards the mining industry and is not issuing new permits,” said a company president, echoing concerns the industry has recently expressed.
  • According to Fresnillo plc, half of the electricity used by the La Herradura mine in Sonora comes from clean energy such as wind and solar, with which, through its strategy of sustainability reiterates its commitment to caring for the environment. It has allowed the saving of 4,051 Mhw, which represents an estimated reduction of 2 thousand 358 tons of CO2e. The company reports that for a decade it has invested in the use of renewable energy sources in order to make its processes cleaner and, with it, to be able, in the medium term, to achieve that 75% of its electricity consumption comes from of wind energy.
  • The president of Mexico, Andrés Manuel López Obrador (AMLO), has remained firm in his decision not to grant new mining concessions, a measure that has been described as one of the main challenges for the sector.  AMLO has repeatedly said that his administration will not award new concessions, as his predecessors would have given parts of the country to mining companies too easily. While it may be difficult to obtain new concessions, mining companies can still acquire properties in the secondary market, since there are concession holders who are willing to sell if necessary.

ON EXPLORATION

  • Aztec Minerals Corp.,  and its JV partner Kootenay Silver Inc., commenced their 2021 exploration program at its Cervantes project in Sonora. The plan is to conduct a +500 soil samples to cover 518 hectares with 100m by 100m spaced samples aimed at extending previous soils grid and covering the Estrella and California North targets to the western, northern, and eastern limits of the property. Detailed lithologic, alteration, structural mapping and rock chip sampling will proceed along with the soil sampling program.
  • SilverCrest Metals Inc., released drill results from its Picacho project in Sonora. The best intercepts from initial drilling include hole PI-20-006 with 40.49 g/t Au, and 260 g/t Ag (3,297 g/t AgEq) over a true width (TW) of 7.25m; and hole PI-20-001 with 8.5 g/t Au and 51 g/t Ag (689 g/t AgEq) over a TW of 16.4m. To date, 42 drill holes have been collared at the Picachos property, with 21 intercepting an average of 4.1m with grades of 8.14 g/t Au and 50 g/t Ag (660 g/t AgEq).
  • Xali Gold Corp., delineated new drill targets at its El Dorado project in Nayarit, through the development of a new 3D geological model. The 3D model visualized high grade mineralization occurring in multiple parallel veins. Drill permits are in progress and are expected to take 3-4 months to get them approved.  Drilling is planned to test potential lateral extensions to the high grade zone.
  • GoGold Resources Inc., released drill results from 12 holes collared at its Los Ricos North project. Significant drill intercepts were encountered in hole LRGF-20-025 (Salomon area) with 0.26 g/t Au, 95 g/t Ag, (1.53 g/t AuEq or 115 g/t AgEq) over 70.5m, including 0.59 g/t Au and 251 g/t Ag (3.94 g/t AuEq or 295 g/t AgEq) over 20.1m, including 0.99 g/t Au and 404 g/t Ag (6.37 g/t AuEq or 478 g/t AgEq) over 10.1m, hole  LRGF-20-025 (Guitarrillas area) with 0.35 g/t Au and 107 g/t Ag (1.77 g/t AuEq or 133 g/t AgEq) over 18.3m, including 2.17 g/t Au and 566 g/t Ag (9.71 g/t AuEq or 728 g/t AgEq) over 2m; hole LRGF-21-033 (Salomon area) with 0.59 g/t Au and 116 g/t Ag (2.14 g/t AuEq or 160 g/t AgEq) over 33.9m, including 1.25 g/t Au and 433 g/t Ag (7.02 g/t AuEq or 527 g/t AgEq) over 3m; hole LRGF-21-033 (Guitarrillas area) with 1.94 g/t Au and 275 g/t Ag (5.6 g/t AuEq or 420 g/t AgEq) over 5.8m, including 4.14 g/t Au and 544 g/t Ag (11.39 g/t AuEq or 854 g/t AgEq) over 2.1m; and hole LRGF-21-033 (Los Chivos area) with 2 g/t Au and 486 g/t Ag (8.48 g/t AuEq or 636 g/t AgEq) over 8.8m, including 7.36 g/t Au and 1,693 g/t Ag (29.94 g/t AuEq or 2,245 g/t AgEq) over 2.3m.

ON MINING

  • Capstone Mining Corp., informed that it is on track for ramp-up to 3,780 tonnes per day at its Cozamine mine in Zacatecas by end of Q1, 2021.  During the period Q4, 2020, Capstone produced 10.3M Lb Cu at a cash cost of USD $0.63 per Lb Cu produced, and a total of 37.9M Lb in 2020 at a cash cost of USD $0.69 per Lb Cu produced.
  • Gold Resource Corporation reported full year 2020 production and financial results from its Don David mine in Oaxaca.  The company produced 20,473 Oz Au, 1.19M Oz Ag, 3.57M Lb Cu, 17.3M Lb Pb, and 44.12M Lb Zn in 2020, at a cash and AISC of USD $784 and USD $1,365 respectively per Oz AuEq, for a net income of USD $4.4M with revenue of USD $90.7M and mine gross profit of USD $12.5M.
  • Torex Gold Resources Inc., announced Q4, 2020 and full year 2020 production and financial results from its Limon-Los Guajes mine complex in Guerrero.  Torex produced in Q4, 2020, a total of 130,649 Oz Au at a cash and AISC of USD$579 and USD $886 per Oz Au produced, and sold 133,063 Oz Au for a net income USD $91.9M an adjusted EBITDA of USD $158.5M, cash flow from operations of USD $137.1M, and a free cash flow of USD $70.3M.  For the full year 2020, Torex reported a production of 430,484 Oz Au, at a cash an AISC of USD $672 and USD $924 per OZ Au produced respectively, with a sale of 437,310 Oz Au at a realized Au price of USD $1,771 per Oz, for revenue of USD $789M, a net income of USD $109M, an adjusted EBITDA of USD $431M, and an operating cash flow of USD $342M. Net cash for the year 2020 was USD $161.6M.

ON FINANCING

  • Carlyle Commodities Corp., granted stock options to directors and consultants for the purchase of 2.79M shares. The options are exercisable for a period of 5 years at an exercise price of $0.14 per share (Cecilia project, Sonora).
  • Coeur Mining Inc., announced its intention to offer USD $350M of senior notes due 2029. Net proceeds from the Offering will be used to pay the purchase price and tender premium for up to all USD $230M aggregate principal amount of its 5.875% senior notes due 2024, to pay the redemption price to redeem any of the 2024 notes that are not so tendered in the concurrent tender offer and to pay the fees and expenses in connection with the offering, the concurrent tender offer and any redemption of the 2024 notes. To the extent that the company has excess proceeds from the offering, the company intends to use such excess amounts for general corporate purposes (Palmarejo mine, Chihuahua). 
  • Capstone Mining Corp., closed a USD $150M silver stream agreement with Wheaton Precious Metals.  “All conditions to complete the Stream Agreement have been fulfilled and Capstone has received USD $150M from Wheaton for 50% of the silver productions until 10M Oz Ag have been delivered, thereafter dropping to 33% of silver production, for the life of mine from the Company’s Cozamin Mine in Zacatecas, Mexico. Wheaton will make ongoing payments equal to 10% of the spot silver price at the time of delivery for each ounce delivered to them”. 
  • Discovery Metals Corp., announced that an aggregate of 31,140,000 common share purchase warrants were exercised at a price of CAD $1.0 for gross proceeds of approximately CAD $31M. The company´s current cash balance has increased to approximately CAD $98M (Cordero project, Chihuahua)
  • Fabled Silver Gold Corp., announced an exercise of warrants for gross proceeds of $4,150,000. Following the exercise of the warrants, Fabled continues to have a total of 50,500,000 share purchase warrants outstanding that were previously issued under the financing. The Company has 185,251,903 total shares issued and outstanding as at February 19, 2021 (Santa Maria property, Chihuahua).   
  • Orla Mining Ltd., completed layback agreement with Fresnillo on its Camino Rojo project in Zacatecas. Orla will pay Fresnillo a total cash consideration of USD $62.8M through staged payments. The first payment of USD $25M was due to Fresnillo on closing of the transaction.
  • Santacruz Silver Mining Ltd., through its subsidiary Carrizal Mining SA de CV,   entered into a definitive agreement with Minera Cedros, a subsidiary of Industrias Peñoles SAB de CV, to acquire the Zimapan mine in Hidalgo and related assets, for a total consideration of USD $20M plus a VAT of USD $3.2M.  Assets to be acquired include a processing facility with a capacity of 75K dry tonnes per month, and Zn, Pb, Cu circuits; surface and underground infrastructure required for day to date operations; and 34 mining concessions totalling 5,139 hectares. Santacruz also entered into a loan facility with Trafigura México SA de CV in the amount of USD $17.6M from which USD $15M will be advanced to Peñoles on behalf of Carrizal on closing of the acquisition. The remains balance, USD $8.2M, is being financed by Minera Cedros. The USD $2.6M balance of the Trafigura loan represents the refinancing of existing debt owing to Trafigura by Carrizal and an affiliate.
  • SilverCrest Metals Inc., completed its previously announced bought deal offering for gross proceeds of USD $138,069,000. Gross proceeds will be used to expand the Las Chispas resources and reserves, through further drilling, to optimize the mine and processing plant design, to explore regional targets, and for general working capital purposes.  
  • Telson Mining Corporation executed a LOI with Accendo Banco SA de CV to provide financing up to USD $25M to complete the construction of its Tahuehueto mine in Durango. Telson also granted stock options to certain directors, officers and insiders of up to an aggregate 4.7M shares in the capital stock of the Company.  The options are exercisable on or before February 25, 2026 at a price of $0.30 per share, and the Company has also re-priced 1,873,333 stock options originally granted as to; 1,423,333 exercisable at $0.71 till November 10, 2022, 400,000 exercisable at $0.72 till April 16, 2023 and 50,000 exercisable at $0.71 till April 23, 2023.

ON RESOURCES AND DEVELOPMENT

  • Alamos Gold Inc., reported minerals reserves and resources for the year-ended 2020. Proven and probable reserves at Mulatos mine in Sonora are 33,935,000 tons of 1.24 g/t Au for a total of 1.35M Oz Au. Measured + indicated resources are 74,193.000 tonnes of 1.09 g/t Au for a total of 2.6M Oz Au, and Inferred resources are 9,291,000 tonnes of 0.91 g/t Au for a total of 271K Oz Au. Mineral reserves are exclusive of mineral resources.
  • Aloro Mining Corp., informed that Alamos Gold has initiated its field exploration program on its Los Venados project in Sonora. Focus of the program is the south portion of the property, adjacent to the Mulatos open pit.
  • Chesapeake Gold Corp., informed over its 2021 work program at its Metates project in Durango. This program will consists of approximately 2,500m drilling to recover 10 tonnes of PQ size material to conduct on 40 test columns metallurgical testwork focused on a new heap leach option, to determine the impacts of size, regent strengths, and ore types to determine the optimum oxidation and precious metal leaching parameters. In parallel, Chesapeake will update the previous PSF and add a scoping study for the sulphide heap leach to demonstrate the potential upside of this option.
  • Excellon Resources Inc., released results from underground expansion and exploration drilling from its Platosa property in Durango. Significant drill intercepts were encountered at the Rodilla, NE-1S, and Pierna Mantos with diamond drilling from underground in hole EX20UG491 at the Rodilla Area with 1,023 g/t Ag, 9.3% Pb, 4.5% Zn, and 0.1 g/t Au (1,422 g/t AgEq) over 8.9m, including 3,499 g/t Ag, 29.7% Pb, 10.3% Zn, and 0.1 g/t Au (4,623 g/t AgEq) over 2.2m; hole EX20UG493 at NE-1S Area with 673 g/t Ag, 6.7% Pb, and 7.1% Zn (1,092 g/t AgEq) over 2.4m;  hole EX20UG506 at 623 Area with 1,258 g/t Ag, 7.5% Pb, 2.4% Zn, and 0.1 g/t Au (1,258 g/t AgEq) over 1.6m; and hole EX21UG515 at Gap Area with 721 g/t Ag, 4.1% Pb, and 4.5% Zn (984 g/t AgEq) over 4m. Drilling continues to define and discover new mineralization in the gap Area with 300m of potential mineralized strike to be explored.
  • Fabled Silver Gold Corp., released results from the third drill hole collared at its Santa Maria property in Chihuahua. This third hole is part of an ongoing 8,000m drill program and intersected 85 g/t Ag and 0.49 g/t Au over 12.5m, including 214 g/t Ag and 1.08 g/t Au over 1.8m. “The 12.50 meter intersection has clearly defined a footwall and hanging wall structure with corresponding elevated silver values up to over 7 ounces of silver and remains open at depth. More importantly, the structure is very conformable and intersected exactly where predicted, which bodes very well for the expansion of Santa Maria and increasing the present NI 43-101 resources on the property with only 3 drill holes drilled to date.”
  • GR Silver Mining Ltd., announced that it is conducting a ground geophysics program at its San Marcial project in Sinaloa, incorporating magnetometry and 3D IP. The survey will initially focus on the resource area to characterize the known Ag-Pb-Zn mineralization therein, which hosts the NI 43-101 resource.
  • Orogen Royalties Inc., provided an update on its Ermitaño property in Sonora, currently under control of First Majestic Silver Corp., where Orogen holds a 2% NSR. Last January, First majestic announced a USD $42.1M investment for the development of Ermitaño project to support the construction of an underground mine infrastructure that began last year. First majestic plans to release a PEA by the end of March, and is currently conducting hydrological studies and geotechnical drilling for an upcoming PFS that is expected to be released in H2, 2021.  In addition, the company also plans to extract 30K to 60K tonnes of material for metallurgical testwork.
  • Prime Mining Corp., announced that a fifth core drill rig has been added at its Los Reyes project, Sinaloa. Prime commenced a 15,000m drill program in December 2020 and only ten has been completed to date. The plan is to complete the phase 1 drilling before onset of the rainy season in mid-August, complete a new geological resource model during the rainy season hiatus and then initiate an aggressive Phase 2 drilling program in Q4 2021.
  • Xtierra Inc., released results from two holes collared at the Victor Vein, located adjacent to and west of its Bilbao deposit in Zacatecas. Hole X6B intersected 108 g/t Ag, 0.31% Pb, 0.08% Zn, and 0.03% Cu (120 g/t AgEq) over a true width (TW) of 1.148m, and hole X7B intersected 61 g/t Ag, 5.5% Pb, 4.41% Zn, and 0.08% Cu (336 g/t AgEq) over a TW of 9.37m, including 82 g/t Ag, 6.8% Pb, 6.9% Zn, and 0.29% Cu over a TW of 0.61m, including 63 g/t Ag, 6% Pb, 6.4% Zn, and 0.08% Cu (412 g/t AgEq) over a TW of 0.36m, including 119 g/t Ag, 13.6% Pb, 11.4% Zn, and 0.01% Cu (795 g/t AgEq) over a TW of 0.70m, and including 107 g/t Ag, 8.2% Pb, 6.9% Zn, and 0.54% Cu (566 g/t AgEq) over a TW of 0.50m.

ON DEALS AND CORPORATE ISSUES

  • Barksdale Resources Corp., announced the appointment of its Corporate Secretary as well as the grant of stock options to directors, employees and consultants (San Javier project, Sonora).
  • Colibri Resources Corporation signed an option agreement with Bimsa Minera SA de CV to acquire 100% interest in the Diamante gold project in Sonora.   The Diamante property comprises two 1,057 hectares in two properties that borders El Mezquite project immediately to the west, and about 1.6km northwest of Colibri’s 1,130-ha Jackie project. To earn an initial 50%, Colibri has to pay USD $100K and incur the expense of completing 2,000m of drilling over the course up to two years, and also will be responsible for all exploration cost while preparing for such drilling program. In addition, Colibri will pay ½ of the property tax and security costs during this period.  Upon completion of its 50% earn-in, Colibri will become equal joint venture partners with Bimsa Minera and then Colibri will have an exclusive period of six months to purchase the remaining 50% of the joint venture by paying Bimsa Minera either of: i) USD $2.1M or ii) USD $1.4M and the grant of a 2% net smelter royalty (NSR) on the project.
  • Equinox Gold Corp., announced that shareholders and optionholders of Premier Gold Mines Limited approved the acquisition by Equinox Gold. “On closing of the Transaction, Premier shareholders will receive 0.1967 of an Equinox Gold share for each Premier share held, such that existing Equinox Gold and Premier shareholders will own approximately 84% and 16% of Equinox Gold, respectively, on an issued share basis. The Transaction is expected to close in March subject to certain regulatory approvals and other customary closing conditions”.  By approving the Transaction, Premier securityholders also approved the spin-out to Equinox Gold and Premier shareholders shares of a newly created US-focused gold production and development company to be called i-80 Gold Corp. (Mercedes mine, Sonora).
  • GR Silver Mining Ltd., announced the appointment of its VP Corporate Comminications (Plomosas property, Sinaloa).   
  • Compañía Minera Autlan SAB de CV announced the appointment of its CEO (Molango mine, Hidalgo).   
  • US Antimony Corporation announced that trading of its common shares at the New York Stock Exchange (NYSE) has been halted since before the opening of trading on Wednesday, February 17, 2021 as a consequence of selling common shares in a manner that violated Sections 301 and 713 of the Company Guide. “The violations relate to two non-underwritten transactions involving the sale of an aggregate of26,290,000 shares of common stock at a discount to the market price at the time of each transaction, with the first transaction, which closed on February 3, 2021, involving the sale of 15,300,000 shares of common stock at a purchase price of $0.70 per share, and with the second transaction, which closed on February 16, 2021, involving the sale of 10,990,000 shares of common stock at a purchase price of $1.30 per share”. The Company has been advised by NYSE Regulation that the Company’s common stock will resume trading on the NYSE American following the issuance of this press release and the filing of a Current Report on Form 8-K disclosing the receipt of the Letter, which the Company anticipates will be prior to the open of trading on Friday, February 19, 2021.
  • VanGold Mining Corp., announced the appointment of Ramón Dávila to join to its Advisory Board (Pinguico property, Guanajuato).  

ON SOCIAL RESPONSIBILITY

  • Fresnillo plc reinforced sanitary measures with campaign in Guadalupe and Calvo, Chihuahua.  Personnel from the San Julian mine delivered five thousand washable face masks through a caravan of more than 25 volunteers. The municipality of Guadalupe y Calvo has received different donations of face masks from the mining company that operates San Julian mine, adding more than 30 thousand items delivered. These surgical cloth mouth covers were manufactured by the “Yerbitas” community sewing workshop.
  • Minera Media Luna (Torex Gold) and the Universidad de Guerrero signed an environmental monitoring agreement  to encourages the inhabitants of Nuevo Balsas, Atzcala and Mezcala, communities located around the El Caracol dam and the Balsas rivers and San Juan de Cocula, to get involved in the Participatory Environmental Audit. “During the protocol ceremony, it was reported that 42 residents of Nuevo Balsas have participated in the taking of water and sediment samples, another 260 fishermen from the same town, Atzcala and Mezcala were surveyed for the evaluation of the fishing effort”. (Limon-Guajes mine complex. Guerrero).
  • Minera Peñasquito (Newmont) donated ventilators to the Medical Specialties Unit (UNEME) in Zacatecas. This UNEME has been converted into a COVID-19 Hospital for services of health, which receives people affected by SARS -Cov 2 from the State of Zacatecas, who require hospitalization and who are not beneficiaries of other social security systems. With this donation, Newmont reaffirms its commitment to Zacatecas in support of the most vulnerable population in the state and joins the efforts of health authorities in their fight against this pandemic. Newmont has delivered in Zacatecas more than MXP $28M, in hospital supplies and food packages.
  • Mina Santa Elena (First Majestic) donated rapid COVID 19 antigen tests and face masks to municipalities of Baviácora, Aconchi, San Felipe de Jesús, Huépac, Banámichi, and Arizpe in Sonora, with the aim of detecting suspicious cases and mitigating risks of contagion.

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

On the picture above, a quartz hydrothermal breccia displaying cockade texture and a quartz vein displaying boiling texture in an intermediate sulphidation epithermal system in a prospect in Chihuahua, Mexico.  Photo by Miguel A Heredia., Mexico.

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

By Jorge Cirett

During the 7th week of the year (February 15th to February 21st, 2021), there were at least 42 press releases by companies working in Mexico. To note, nine companies posted exploration advances on their properties (with GoGold’s Casados discovery deemed the most significant), six presenting quarterly results, two informing on power cuts, six posting on financing or share options, nine on project development and two on corporate issues. ON MEXICO ISSUES, the Mexican mining sector is dealing with several (government induced) challenges and great opportunities. The Nuevo Leon State government intends to push its mining sector. Camimex points out the goal of the energy bill should be to promote the reduction of the electricity cost. ON EXPLORATION, in Sonora, Tarachi Gold released drilling results from the San Javier concession; Tocvan Ventures initiated the next exploration campaign at Pilar. In Chihuahua, Radius Gold released drilling results from the Amalia project; Silver Spruce is to carry a LidDar survey at Pino de Plata; Mammoth Resources released observations by independent consultants on its Tenoriba property. In Sinaloa, Prismo Metals presented drilling results on Palos Verdes; Vizsla Silver informed seven rigs are now churning at Panuco; Brigadier Gold released drilling results from its Picachos project. In Jalisco, Stroud Resources informed on the approval of its drilling permit for Santo Domingo, Hostotipaquillo. ON MINING, Starcore International, Pan American Silver, Golden Minerals, Hecla Mining, Newmont, and First Majestic released quarterly and full year 2020 reports. Excellon and Gatos Silver informed on work affected by the power cuts in the north of the country. ON FINANCING, SGold79 Mines and Vizsla Silver granted options to directors, officers and employees; Consolidated Zinc, Orogen Royalties, Van Gold Mining and Brigadier Gold informed on their financing rounds. Heliostar Metals qualified to trade on the OTCQX Best Market. ON RESOURCES AND DEVELOPMENT, Avino Silver will drill 12,000 m on the Avino property. Sonoro Gold released results from 24 holes at Cerro Caliche. VanGold released positive results from the PEA on El Cubo and El Pinguico in Zacatecas. McEwen Mining filed the FS on the Fenix project. GoGold Resources made a discovery at Los Ricos North. Coeur Mining released the 2020 resource estimate for Palmarejo. Capitan Mining released drilling results from the Peñoles project. Golden Tag released results from drilling at San Diego, Velardeña. GR Silver Mining reported drilling results from Plomosas.  ON DEALS AND CORPORATE ISSUES, Azure Minerals is divesting its Mexican portfolio. Premier Gold shareholders had to vote in February 19 on the arrangement with Equinox Gold. ON SOCIAL RESPONSIBILITY, Minera Media Luna is to make a large investment during the next three years at the Media Luna project in Guerrero, with a significant impact in the communities of the area.

ON MEXICO ISSUES

  • The Mexican Mining Sector is dealing with several challenges and great opportunities, according to mining companies executives. The outright denial to grant mining concessions, the lack of a medium term regulatory view, security issues, the blockage by SEMARNAT of several projects, the lack of clarity and rules and lagging paperwork have to be weighed against the great mineral potential of the country, and its qualified workforce.  
  • The Nuevo Leon State government seeks to foster the mining activity on the southern part of the state. Nuevo Leon has significant deposits of barite, clays, limestone, dolostone, gypsum, phosphorite and talc, among other minerals.
  • Camimex (Cámara Minera de México) pointed out that the goal of an energy bill should be to promote the reduction of the electricity cost, not to favor any given company. With the introduction of the auto supply figure a few years ago mining companies saw the electricity cost go down from US$0.12-$0.13 Kw/hr to US$0.065 Kw/hr, while those that rely on the government supplied electricity pay US$0.08 and $0.09 Kw/hr. Miners in Perú and Chile pay US$0.06 Kw/hr and those in USA and Canada US$0.04 Kw/hr and US$0.02 Kw/hr respectively.
  • Newmont’s Peñasquito mine in Zacatecas produced 520 K ounces of gold and 934 K gold equivalent ounces in 2020. Production for 2021 is estimated at 660 K ounces of gold and 1.12 M gold equivalent ounces.

ON EXPLORATION

  • Radius Gold Inc. reported results from its phase four drilling program operated by Pan American Silver Corp. at its Amalia project in Chihuahua. Highlighted true width results comprise 6.5 m @ 0.59 gpt Au, 151 gpt Ag; 0.60 m @ 1.48 gpt Au, 475 gpt Ag; 5.0 m @ 1.73 gpt Au, 70 gpt Ag; 5.5 m @ 0.93 gpt Au, 99 gpt Ag. The high-grade San Pedro ore shoot has been defined for 410 meters down-dip.
  • Tarachi Gold Corp. released assay results from the first nine diamond holes completed on the San Javier concession, at its Tarachi project in Sonora. Highlighted core-length intervals comprise 3.0 m @ 1.58 gpt Au, 1.0 m @ 1.80 gpt Au, 1.0 m @ 6.08 gpt Au, 14.4 m @ 0.21 gpt Au; 9.0 m @ 0.61 gpt Au; 4.0 m @ 0.86 gpt Au, 2.6 m @ 1.52 gpt Au, 2.0 m @ 11.90 gpt Au (including 1.0 m @ 21.10 gpt Au); 12.0 m @ 0.63 gpt Au; 5.6 m @ 5.39 gpt Au; 1.0 m @ 15.70 gpt Au; 17.0 m @ 0.62 gpt Au; 10.6 m @ 1.6 gpt Au. “the gold mineralization is situated along open brittle structures containing over 20 percent sulphides, mainly pyrite with minor quartz veining/veinlets”.
  • Prismo Metals Inc. presented results from its initial five-hole 573 m diamond drilling program at its Palos Verdes project in Sinaloa. The program was designed to test for mineralization continuity to depth and along strike to previous reconnaissance drilling. Highlighted true width results comprise 3.2 m @ 0.13 gpt Au, 69 gpt Ag, 0.14% Cu, 0.1% Pb, 0.3% Zn; 2.5 m @ 0.24 gpt Au, 17 gpt Ag, 0.09% Cu, 0.2% Pb, 0.6% Zn; 1.3 m @ 0.73 gpt Au, 38 gpt Ag, 0.19% Cu, 0.6% Pb, 3.9% Zn; 0.9 m @ 0.03 gpt Au, 6 gpt Ag, 0.06% Cu, nil Pb, 1.4% Zn.
  • Silver Spruce Resources Inc. has contracted Eagle Mapping Ltd. to carry out a LiDar survey on the Pino de Plata property in Chihuahua. The survey is to produce an orthorectified color aerial photography and an accurate digital elevation model (DEM).
  • Vizsla Silver Corp. announced the arrival of two drill rigs to its Panuco property in Sinaloa. With these, a total of seven rigs is now operating in Panuco. The company completed over 28,000 m of drilling last year and plans to complete more than 40,000 m in the first half of 2021.
  • Brigadier Gold Ltd. provided results from its diamond drill and underground sampling programs at Picachos, Sinaloa. Drill core length highlighted true width (TW) intervals comprise 30 m @ 1.27 gpt Au, 212 gpt Ag; 3.5 m @ 1.07 gpt Au, 18 gpt Ag, 0.39% Cu, 0.15% Zn; 6.4 m @ 0.15% Zn; 10.8 m @ 0.22% Zn; 1.6 m @ 5.08 gpt Au, 35 gpt Ag, 1.90% Cu, 0.22% Zn; 183.5 m @ 0.21 gpt Au, 2 gpt Ag, 0.19% Pb, 0.37% Zn (including 0.9 m @ 10.65 gpt Au and 1.0 m @ 6.26 gpt Au, 0.54% Pb, 0.28% Zn). Highlighted trench TW intervals comprise 0.4 m @ 49.60 gpt Au, 31 gpt Ag, 0.34% Pb, 0.37% Zn; 0.8 m @ 9.70 gpt Au, 0.52% Pb, 0.32% Zn; 2.6 m @ 2.32 gpt Au, 0.14% Zn; 1.0 m @ 20.14 gpt Au, 36 gpt Ag, 0.14% Cu, 0.74% Pb, 2.51% Zn; 2.0 m @ 11.55 gpt Au, 0.12% Cu, 0.23% Pb, 0.47% Zn; 0.7 m @ 7.95 gpt Au, 43 gpt Ag, 3.26% Cu, 0.22% Pb; 0.5 m @ 109.14 gpt Au, 20 gpt Ag; 4.5 m @ 2.56 gpt Au, 4 gpt Ag, 0.19% Cu, 0.64% Pb, 0.86% Zn; 1.2 m @ 23.45 gpt Au, 6 gpt Ag, 0.19% Pb, 0.12% Zn “Of the 28 holes drilled to date, fourteen (1704 metres) were drilled to test the San Agustín Vein, 10 holes (1029 metres) tested surface exploration targets defined by trenching, 2 holes (168 metres) tested under the historic San Antonio Mine and one hole tested under the historic La Gloria Mine”. A second drill rig is being added for the commencement of the phase two drilling campaign.
  • Stroud Resources Ltd. informed the drill permit application has been approved for its Santo Domingo property in Hostotipaquillo, Jalisco. The first phase consists of 12 drill holes, and a second phase comprises 38 holes to expand the mineral resources. “Stroud’s exploration of the two main mineralized zones has drilled through many of the workings. These zones; La Rayas and Guadalupe, are a series of banded to breccia style epithermal quartz carbonate vein systems represented with miargyrite, galena, sphalerite, argentite and native silver and gold. La Rayas is 30 to 35 metres wide and Guadalupe is 15 to 30 metres wide. Both are parallel structures with greater than a 700-metre strike length and about 300 metre depth”.
  • Mammoth Resources Corp. released observations by independent consultants on its Tenoriba property in Chihuahua. According to them the mineralization in the area is of epithermal high sulfidation type and occurring near the angular unconformity between the Lower and Upper Volcanic Groups. A thorough 2-year exploration program was recommended to evaluate the main prospect areas and to address areas that have to date seen little or no work.
  • Tocvan Ventures Corp. announced the start of the next phase of exploration at El Pilar in Sonora. The planned work is to include mapping and sampling of key target areas across the project. The property is interpreted as a structurally controlled low-sulfidation epithermal system in andesitic and rhyolitic volcanic rocks.

ON MINING

  • Excellon Resources Inc. informed it is looking for alternative energy sources for its Platosa mine in Durango. The energy utilised by the company is generated with natural gas, and it has seen its price multiplied up to a hundred times due to the intense cold wave in Texas. The price increase is expected to be a short-term event.
  • Starcore International Mines Ltd. announced production results for the third quarter ended January 31, 2021. At its San Martin mine in Queretaro, 57.3 K tonnes were milled @ 1.66 gpt Au, 22.9 gpt Ag, recovering 88.8% and 57.1% respectively to produce 3,063 Oz AuEq. A 6,000 m drill program has been implemented on the northwestern and eastern parts of the mine, matched with a development program of approximately 1,200 meters to cover both zones under exploration.
  • Mexus Gold US. continues mining at its Santa Elena project in Sonora. After a slowdown due to a Covid outbreak, operations are now gaining pace.
  • Pan American Silver Corp. reported audited financial results for 2020 and the Q4 of the same year, including some figures from its Mexican operations. At La Colorada, in Zacatecas, 1.19 M Oz Ag, 800 Oz Au were produced in Q4 and 5.02 M Oz Ag, 3,500 Oz Au during the year. At Dolores, in Chihuahua, 0.76 M Oz Ag, 30,500 Oz Au were produced in Q4 and 5.02 M Oz Ag, 98,000 Oz Au during the year. Cash cost and AISC per Ag Oz for the year stood at $6.99 and $10.80 for La Colorada and ($2.48) and $6.17 for Dolores.
  • Golden Minerals Co. released financial results for 2020. During the year the Rodeo open pit in Durango was started, with ore to be processed at the Velardeña oxide mill and an expected production between 12 K and 14 K Oz Au for 2021. In Yoquivo, Chihuahua, several new veins were discovered. The lease of the Velardeña mill to Hecla was terminated in November 2020, gathering $5.6 M in revenue. The Santa María property was farmed out for $4 M, whilst the Velardeña mine and sulfide mill might restart late in 2021. Cash and cash equivalents of $9.7 M by the end of the period.
  • Hecla Mining Co. presented 2020 results, including some figures from its Mexican operations. At San Sebastian, in Durango, 1.0 M Oz Ag, 7,223 Oz Au were produced in the year (0.2 M Oz Ag, 1,159 Oz Au in Q4), with the mill operating at 474 tpd when in production. Also in San Sebastian, El Tigre and El Bronco veins that were discovered under thick soil cover in 2020, can be up to 8.5 m in width and extend for more than 1.6 km. The best true width intercepts are 2.90 m @ 1,384 gpt Ag, 6.84 gpt Au for El Bronco vein and 1.07 m @ 504 gpt Ag, 2.80 gpt Au for El Tigre vein.
  • Newmont Corp. announced Q4 and full year 2020 results, including figures from its Peñasquito operations in Zacatecas. During the quarter 201 K Oz Au and 246 K Oz AuEq were sold at an AISC of $746 and $795 per Oz respectively. For the year, 512 K Oz Au were produced and 934 K Oz AuEq at an AISC of $806 and $828 per Oz respectively. For 2021 production from Peñasquito is expected to reach 660 K Oz Au and 1,120 K Oz AuEq.
  • First Majestic Silver Corp. released its financial results for the fourth quarter and year 2020. For the year, 2.21 M tonnes were processed to produce 11.6 M Oz Ag, 20.38 M Oz AgEq at a cash cost of $5.09 per Oz Ag and an AISC of $13.92 per Oz AgE.
  • Gatos Silver Inc. reported electricity from Mexico’s national power grid supplying its Cerro Los Gatos mine in Chihuahua has been restricted, due to recent severe winter storms in Texas. The project facilities have power generators capable of sustaining the mine and field camp operations, but not the processing plant; underground mining will continue at a reduced rate and a planned shutdown for the processing plant will be completed during this temporary power restriction.

ON FINANCING

  • SGold79 Mines Ltd. granted 500 K common shares to Mr. Paul Carrelo, the newly appointed independent director (Higo Blanco, Oaxaca).
  • Consolidated Zinc Ltd. informed there are firm commitments to raise A$2.55 M in gross proceeds. The funds are required to relieve short term cashflow pressure due to operational issues at third-party processing facilities since November 2020. (Plomosas, Chihuahua).
  • Orogen Royalties Inc. cancelled the previously announced private placement (royalties in Ermitaño, Sonora).
  • VanGold Mining Corp. has further expanded its non-brokered private placement financing for gross proceeds of $16.95 M (El Cubo, Guanajuato).
  • Heliostar Metals Ltd. announced it has qualified to trade on the OTCQX Best Market, upgrading from the OTCQB Venture Market (La Lola, Sonora).
  • Vizsla Silver Corp. granted 2.14 M options to directors, officers, employees and consultants (Panuco, Sinaloa).
  • Brigadier Gold Ltd. announced a non-brokered private placement financing to raise up to $1 M.

ON RESOURCES AND DEVELOPMENT

  • Avino Silver and Gold Mines Ltd. has a 12,000 meters drilling program for its 1,104 hectares Avino property in Durango. Of these, 2,000 meters are planned on El Trompo vein, 3,000 meters on the Santiago vein, 2,500 meters on the Avino ET area and 4,500 meters on the Avino West area. Other areas that area to see investment include a dry stack tailings and improvements on circuit 4. Capital expenditures are expected to be between $6 to $8 M.
  • Vangold Mining Corp. announced positive results from the preliminary economic assessment (PEA) for the combined El Cubo and El Pinguico project in Guanajuato. There are 718.6 K tonnes @ 160 gpt Ag, 1.90 gpt Au containing 7.2 M Oz AgEq as indicated resources and 1.45 M tonnes @ 214 gpt Ag, 2.78 gpt Au containing 20.4 M Oz AgEq as inferred resources. “On an after-tax basis, the Combined Project generates a Base Case NPV (5%) of $32.9 M and an IRR of 105%, excluding El Cubo acquisition costs. Using commodity prices of $22.41/oz Ag and $1756/oz Au, which are +15% above the Base Case (yet still lower than current spot prices), the after-tax NPV(5%) is $79.0 M and the IRR is 344%”.
  • Sonoro Gold Corp. released assay results from 24 holes at its Cerro Caliche project in Sonora. Some of the highlighted core length intervals comprise 6.10 m @ 0.73 gpt Au, 18 gpt Ag; 7.62 m @ 3.09 gpt Au, 7 gpt Ag; 4.57 m @ 0.75 gpt Au, 1 gpt Ag; 6.10 m @ 0.78 gpt Au, 1 gpt Ag; 3.04 m @ 1.15 gpt Au, 1 gpt Ag; 3.05 m @ 2.32 gpt Au 2 gpt Ag. The Buena Suerte zone strike length is now 900 m long, and continuous mineralization has been confirmed along 2 kilometers of the El Rincón-Veta de Oro-Abejas vein and stockwork. A new zone, Bellotoso, has been identified, with a 2 kilometers strike length.   
  • McEwen Mining Inc. filed the feasibility study (FS) on the Fenix project, Sinaloa. The report envisions a 9.5-year mine life with after-tax IRR of 28% using $1,500/Oz gold and $17/Oz silver. Average annual production is projected at 26 K Oz Au in Phase 1 and 4.5 M Oz AgEq in Phase 2.
  • GoGold Resources Inc. released results of nine diamond drill holes from the Casados deposit in the Los Ricos North project. Limited historical mining averaged 1.5 m in width at the Casados vein, but the present drilling intercepted mineralized widths over 20 m, and a second vein, also greater than 20 m in width. Highlighted core length intervals comprise 6.4 m @ 0.19 gpt Au, 42 gpt Ag; 6.9 m @ 0.24 gpt Au, 44 gpt Ag; 56.5 m @ 0.37 gpt Au, 144 gpt Ag; 22.5 m @ 0.32 gpt Au, 97 gpt Ag (including 4.9 m @ 1.05 gpt Au, 307 gpt Ag); 27.5 m @ 0.48 gpt Au, 214 gpt Ag (including 1.3 m @ 4.67 gpt Au, 2,390 gpt Ag); 59.9 m @ 0.30 gpt Au, 84 gpt Ag; 20.3 m @ 0.51 gpt Au, 143 gpt Ag; 22.5 m @ 0.29 gpt Au, 84 gpt Ag; 53.3 m @ 0.40 gpt Au, 99 gpt Ag; 21.4 m @ 0.63 gpt Au, 136 gpt Ag; 21.3 m @ 0.34 gpt Au, 104 gpt Ag; 19.3 m @ 0.42 gpt Au, 135 gpt Ag.
  • Coeur Mining Inc. reported its 2020 mineral reserves and resources, including figures from its operations in Mexico. At Palmarejo in Chihuahua, 68,850 m were drilled in 180 holes across 11 targets. Highlighted results include 6.9 m @ 4.3 gpt Au, 151 gpt Ag; 5.2 m @ 6.4 gpt Au, 179 gpt Ag at the La Patria zone; 3.4 m @ 2.8 gpt Au, 525 gpt Ag at the Bavisa zone and 6.8 m @ 9.7 gpt Au, 640 gpt Ag; 11.2 m @ 6.1 gpt Au, 430 gpt Ag; 6.0 m @ 9.1 gpt Au, 568 gpt Ag on the Hidalgo zone.
  • Capitan Mining Inc. reported results from the last two holes of its 2020 drill campaign at Peñoles, in Durango.  Highlighted core length intercepts comprise 64 m @ 0.50 gpt Au, 7 gpt Ag (including 13.7 m @ 0.93 gpt Au, 7 gpt Ag); 21.3 m @ 0.25 gpt Au; 15.2 m @ 0.25 gpt Au; 42.7 m @ 0.17 gpt Au, 35.1 m @ 0.31 gpt Au; 35.1 m @ 0.21 gpt Au, 4 gpt Ag. The Hanging Wall zone has been confirmed and delineated for over 600 m.
  • Golden Tag Resources Ltd. released results from its ongoing 4,500 m drilling program at the San Diego property in Durango. The infill sampling of historic holes highlighted core intercept results comprising 9.36 m @ 0.03 gpt Au, 51 gpt Ag, 0.26% Pb, 0.23% Zn; 50.52 m @ 0.03 gpt Au, 25 gpt Ag, 0.24% Pb, 0.29% Zn; 175.30 m @ 0.09 gpt Au, 30 gpt Ag, 0.64% Pb, 0.55% Zn (including 48.41 m @ 0.12 gpt Au, 34 gpt Ag, 0.69% Pb, 0.80% Zn and 27.30 m @ 0.16 gpt Au, 58 gpt Ag, 1.30% Pb, 0.76% Zn) in one hole; 50.05 m @ 0.04 gpt Au, 0.43% Pb, 0.41% Zn; 9.90 m @ 0.06 gpt Au, 19 gpt Ag, 0.51% Pb, 0.37% Zn; 298 m @ 0.03 gpt Au, 30 gpt Ag, 0.67% Pb, 0.70% Zn.
  • GR Silver Mining Ltd. reported results from the current drilling program in the San Juan area of its Plomosas project in Sinaloa. Highlighted core length intercepts comprise 2.5 m @ 2,195 gpt Ag, 1.12 gpt Au, 0.3% Cu; 8.8 m @ 87 gpt Ag, 0.31 gpt Au, 0.8% Pb, 1.9% Zn; 1.1 m @ 244 gpt Ag, 0.53 gpt Au, 1.0% Pb, 2.1% Zn, 0.4% Cu; 22 m @ 70 gpt Ag, 0.15 gpt Au, 0.3% Pb, 0.3% Zn; 15.0 m @ 42 gpt Ag, 0.10 gpt Au, 0.3% Pb, 0.2% Zn; 3.4 m @ 578 gpt Ag, 0.20 gpt Au, 0.5% Pb, 1.3% Zn; 8.7 m @ 0.4% Zn; 18.3 m @ 2 gpt Ag, 0.06 gpt Au, 0.1% Pb, 0.7% Zn. These drilling results continue to define high-grade epithermal mineralization in the San Juan area and towards the nearby San Francisco vein.

ON DEALS AND CORPORATE ISSUES

  • Azure Minerals Ltd. announced it is looking to divest its Mexican properties portfolio. The company “has commenced a strategic review of its precious metals and base metals projects in Mexico, including the 100%-owned Alacrán silver-gold-copper and Oposura zinc-lead-silver projects”.
  • Premier Gold Mines Ltd. reminded its shareholders of the meeting that was to be held on February 19th to vote on the arrangement between Premier Gold and Equinox Gold Corp. regarding the acquisition of the company (Mercedes, Sonora).

ON SOCIAL RESPONSIBILITY

  • Minera Media Luna announced an investment of 12 billion pesos (12 thousand million pesos, or US$600 M) in the next three years at its Media Luna project in Guerrero. Currently, at its Limon-Guajes mine 70% of the 900 employees and 1,300 contractors are from the state. It was also stated that about 40% of its workforce is composed by women.

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

On the image below:  Quartz vein on the old Mazatlán-Durango road, geologist Guillermo Contreras for scale. Picture by Jorge Cirett.