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

 

Visible Gold in a high sulphidation epithermal system

By Miguel A Heredia

During the twenty seven week of the year (June 29th to July 5tt, 2020), at least 41 press releases were announced by companies working in Mexico, with eleven disclosing deals and corporate issues, nine announcing financial rounds, eight commenting on Mexican issues, six discussing on social issues, three informing on exploration results, two reporting on resources and developments, and two communicating production and financial results. ON MEXICO ISSUES, Miguel Angel Lucero Olivas, Senator of the Labour Party (PT), submitted for the consideration of the plenary, a proposal with Point of Agreement at the Supreme Court of Justice of the Nation in regards to the 34 constitutional controversies promoted by the Government of the state of Chihuahua and various municipalities of Chihuahua, Sonora, Zacatecas and San Luis Potosí, regarding the mining Fund. Gerardo Duran Alarcon, Director of the Chihuahua Mining Cluster estimated that the mining industry projects a drop between 17-20% in production and 10% in exports during the current year compared to 2019.  Francisco Quiroga Fernandez reported that authorities of the Undersecretariat of Mines of the Ministry of Economy (SE), have been carrying out verification tours to corroborate compliance with health protocols. Alfredo Tijerina Guajardo, Director of the Mining Development Trust Fund (Fideicomiso de Fomento Minero) (FIFOMI) announced that it is granting resources to support exploitation work of small and medium sized mining firms. Javier Villarreal Gamez, Undersecretary of Labor of the National Committee of the Confederation of Workers of Mexico (CTM) stated that the government must give security to investment in mining. Francisco Quiroga Fernandez, Undersecretary of Mining stated that the Mining Industry in Mexico has made a great effort to maintain jobs and wages during the pandemic. According to the National Institute of Statistics and Geography (INEGI), mining and metallurgical production fell 25.1% in April 2020 compared to April 2019.  ON EXPLORATION, In Sonora, Sonoro Metals announced plans for a 6,000m 2020 Phase 1 drill program at its Cerro Caliche project. In Chihuahua, Radius reported high-grade surface sampling results from its Amalia project. In Durango, Canasil announced the commencement of an initial core drill program to test Ag-Au targets at its Nora project.  ON MINING, Consolidated Zinc advised that it has returned to pre-COVID-19 production rates at its Plomosas mine and Aldama processing plant in Chihuahua. Gold Resource announced the milestones of a decade of production, generating over $1 billion in revenue and distributing over $114M in shareholder dividends from its Oaxaca Mining Unit in Mexico. ON FINANCING, Golden Goliath announced a private placement to raise gross proceeds of up to $2.5M (San Timoteo project, Chihuahua). Mag Silver entered into a sell agreement for gross proceeds of up to USD $50M (Juanicipio project, Zacatecas).  San Marco increased its previously announced non-brokered private placement to up to $3.5M (Chunibas project, Sonora). Oroco closed a non-brokered private placement for gross proceeds of $1.65M (Santo Tomas project, Sinaloa). Radius received from Pan American a payment of USD $150K in partial fulfillment of the Amalia JV agreement. Telson increased its previously announced non-brokered private placement to up to $1.4M (Tahuehueto project, Durango). VanGold concluded its warrant acceleration bonus program in which 7,159,500 warrants were exercised for gross proceeds of $1,715,950 (Pinguico project, Guanajuato). Excellon signed a binding term sheet for a fully subscribed financing of CAD $8M through the private placement of secured convertible debentures of the company. ON RESOURCES AND DEVELOPMENT, Prime Mining released surface and underground sampling results from its Los Reyes project in Sinaloa. Endeavour reported drill results from the El Curso property at its Guanacevi mine in Durango. ON DEALS AND CORPORATE ISSUES, Discovery Metals reported results from its annual general meeting of shareholders (Cordero project, Chihuahua). Magna Gold granted stock options to certain officers, directors and consultants of the company (San Francisco Mine, Sonora). One World Lithium provided a default status report to approve a temporary management cease trade order (Salar del Diablo project, Baja California Norte). Silver Dollar appointed Mr. Perry Durning and Mr. Frank (Bud) Hillemeyer as technical advisors to the Company (La Joya property, Durango). Silver One announced the initiation of trading on the OTCQX (Peñasco Quemado project, Sonora). Argonaut and Alio completed merger to create a North American, diversified precious metals producing company (El Castillo mine, Durango).  Brigadier announced the appointment of Oscar Mendoza as special advisor Cuatro Ciénegas project, Coahuila). Canuc reported results from its annual general meeting of shareholders and appointed a new member to its board of directors (San Javier project, Sonora). Mammoth reminded shareholders of the granting of a Management Cease Trade Order (Tenoriba project, Chihuahua).  Sierra Metals reported results from its annual general meeting of shareholders (Cusi mine, Chihuahua). Defiance confirmed that the Company’s management is unaware of any material change in the Company’s operations that would account for the recent increase in market activity (San Acacio project, Zacatecas). ON SOCIAL RESPONSIBILITY, Agnico Eagle launched its policy “Stay Safe Stay Watchful”, as countries where the company is operating are now cautiously emerging from the global blockade. Minera Penmont (Fresnillo plc) meets extraction regulations with new technology and innovative tools (La Herradura mine, Sonora). Minera Peña Colorada delivered the Medical Care Unit to the General Hospital of Manzanillo in Colima state. The Grupo Mexico Foundation donated over 45,000 medical supplies to the Zacatecas Health Secretariat, and three pressure ventilators to the regional hospital of Nueva Rosita, Coahuila. Minera san Julian (Fresnillo plc), delivered additional 4,000 face mask to the Municipal Council of Guadalupe y Calvo, Chihuahua.

 ON MEXICO ISSUES

  • Miguel Angel Lucero Olivas, Senator of the Labour Party (PT), submitted for the consideration of the plenary, a proposal with Point of Agreement at the Supreme Court of Justice of the Nation in regards to the 34 constitutional controversies promoted by the Government of the state of Chihuahua and various municipalities of Chihuahua, Sonora, Zacatecas and San Luis Potosí, regarding the Mining Fund. The formal name of the well-known “Mining Fund” is the Fund for the Development of Mining Production Areas and is administered through of a financial instrument established by the 2019 Income Law, article 25 section IX. The total amount collected is MXP $4,320M.  The distribution will be made as follows:  80% (Fund for the Development of Mining Production Zones), that is to say approximately MXP $3,500M; 10% for the Ministry of the Economy (SE) and 10% for the Federal Government. (Note:  The SE has given its 10% to the Federal Government since last year.) The Ministry of Economy will distribute the 2018 Mining Fund resource directly or in coordination through an agreement with states, municipalities and other dependencies, and according to the guidelines.
  • Gerardo Duran Alarcon, Director of the Chihuahua Mining Cluster estimated that the mining industry projects a drop between 17-20% in production and around 10% in exports during the current year compared to 2019. He noted that expectations are given by the cessation of activities that the industry had due to the contingency, as well as by the exercise of a fiscal framework that does not favor investment, as well as for political, economic and insecurity issues. The fiscal framework is not new, since it arose from the 2013 tax reform in which it was decided to cancel the deductibility of investment in exploration. Virtually since then, investment started to slow down and this year it has practically stopped. The director said that exploration work involves a high amount of investment in dollars and if it does not obtain the expected results, it practically loses one hundred percent and that makes it unattractive to bet on the search for more deposits.
  • Francisco Quiroga Fernandez reported that authorities of the Undersecretariat of Mines of the Ministry of Economy (SE), have been carrying out verification tours in mining companies to corroborate compliance with health protocols in order to ensure that the restart of economic activity does not undermine the effort made by the authorities of different levels of government and society, as a whole, to face the challenge of COVID-19. He stated that verification tours have allowed corroborating that many companies are showing a great sense of co-responsibility. They are working together with health authorities, municipal presidents and workers’ representatives to reinforce the capacity for medical attention.
  • Alfredo Tijerina Guajardo, Director of the Mining Development Trust Fund (Fideicomiso de Fomento Minero) (FIFOMI) announced that it is granting resources to support exploitation work of small and medium sized mining firms. FIFOMI is focused mainly on providing low-interest rate loans to companies in the sector, basically those considered small, with annual turnover of up to MXP $200M, and medians with income of up to MXP $900M. He added that in mining there are three major phases to which financing is provided: exploration, development and exploitation, and that FIFOMI concentrates on the latter, since it is considered that the first two phases require so-called risk capital.
  • Javier Villarreal Gamez, Undersecretary of Labor of the National Committee of the Confederation of Workers of Mexico (CTM) stated that the government must give security to investment in mining. It is necessary that the Federal Government encourages, promotes and gives security to private investment in mining, through reforms, especially in fiscal matters, if necessary, because it would generate certainty, contrary to the prevailing situation at the moment. He stressed that mining is essential for national development, since it represents 3 percent of the country’s Gross Domestic Product and constitutes 8% of industrial GDP. He considered it difficult to forecast the pace of mining recovery in the remainder of 2020 and the prospects for 2021, but assured that the bet of all the sectors involved should be in favor of this industry remaining active. Noting that mining generates 370 thousand direct jobs and 2.3 million indirect jobs, which generates a production chain of 2.6 million total jobs, he commented that this sector is the source of raw materials for practically all industries in the country, from that of medications up to aerospace, just to name a few. He stressed that the jobs generated by mining are well paid, between 80 and 100% higher than in the rest of the industries, with contributions of profits that also far exceed the average of companies in other areas. Javier Villarreal, also general Secretary of the National Union of Workers of the Mining-Metallurgical Industry of the CTM, explained that the authorities must take actions to keep that sector growing.
  • Francisco Quiroga Fernandez, Undersecretary of Mining stated that, one month after the Mining Industry in Mexico has reactivated its activities, the mining sector has made a great effort to stay afloat in the face of adversity. He highlighted the effort that the sector has made to maintain the jobs and full wages of its workers. He also pointed out that only 75% of the workers have returned to the mines, while 25% more remain working from their homes, under the strict implementation of safe work and coordinated work with local authorities.
  • According to the National Institute of Statistics and Geography (INEGI), mining and metallurgical production fell 25.1% in April 2020 compared to April 2019, this caused by the suspension of operations in the face of the COVID-19 pandemic. This index that considers the activities of extraction, processing, smelting and refining of metallic and non-metallic minerals, decreased by 24.4% based on seasonally adjusted figures in the fourth month of 2020 compared to March. The INEGI reported that the production of non-coking coal decreased by 85.4% in an annual variation, while the production of lead decreased 53.3%, zinc 49%, gold 40.9%, coke 36.1%, pellets of iron 22.5%, silver 21.1% silver, fluorite 14.4%, gypsum and copper 10.8%. In contrast, sulfur was increased by 1.2%.

ON EXPLORATION

  • Sonoro Metals Corp., announced plans for a 6,000m 2020 Phase 1 drill program to test 20 targets at its Cerro Caliche project in Sonora. This program is part of the 50,000m of core and RC drilling announced previously by the company. The aim of the Phase 1 drill program is to test previously drilled, shallow, Au-bearing epithermal mineralization for the presence of deeper high-grade Au mineralization at elevations of 200-300m below surface. The Phase 1 drilling is expected to take up to five months.
  • Radius Gold Inc., reported high grade surface sampling results from its Amalia project in Chihuahua. Surface sampling from the untested California target have returned grades of up to 1.5 m @ 27 g/t Au. Radius has resumed the processing of the permits for stage 4 drilling at its Amalia project and expects to obtain them within the next six weeks.
  • Canasil Resources Inc., announced the commencement of an initial core drill program to test Ag-Au targets at its Nora project, which consists of structurally-controlled epithermal veins. The program will be focused on the undrilled Candy vein and Canasil plans to drill four sections, spaced over a strike length of 500m, all below high-grade Ag-Au samples from vein outcrops and rock dumps from earlier underground workings.

ON MINING

  • Consolidated Zinc Limited, advised that it has returned to pre-COVID-19 production rates at its Plomosas mine and Aldama processing plant in Chihuahua. Based on June production figures, the company anticipated the third quarter will be a better operational quarter than it has seen this year.
  • Gold Resource Corporation, the milestones of a decade of production, generating over $1 billion in revenue and distributing over $114 million in shareholder dividends from its Oaxaca Mining Unit in Mexico. “The Company announced commercial production from its Oaxaca Mining Unit (OMU) on July 1, 2010 estimating the Arista Mine’s life of mine at a minimum of nine years while only having three to four years of internally delineated resource at that time. Today, July 1, 2020, marks the milestone of one full decade of production from the OMU exceeding the Company’s then nine-year 2010 mine life estimate. With approximately four years of current proven and probable reserves, there is a strong possibility of a second decade of production ahead for the OMU”.

ON FINANCING

  • Golden Goliath Resources Ltd., announced a private placement to raise gross proceeds of up to $2.5M. The financing will consists of a combination of flow-through units priced at $0.20 with a half warrant priced at $0.30 and non flow-through units priced at $0.15 with a full warrant priced at $0.30 (San Timoteo project, Chihuahua).
  • Mag Silver Corp., entered into a sales agreement to raise gross proceeds of up to USD $50M.The sale of common shares will be made through “at the market distributions”. The company plans to use the net proceeds to fund the completion of construction of its Juanicipio project in Zacatecas, and for working capital and general corporate purposes.
  • San Marco Resources Inc., increased its previously announced flow-through non-brokered private placement from $2M to up to $3.5M, due to strong investor demand (Chunibas project, Sonora).
  • Oroco Resource Corporation, closed a non-brokered private placement for gross proceeds of $1.65M. Net proceeds will be used to advance its Santo Tomas project in Sinaloa, including site preparation for an exploration drill program, the acquisition of surface rights and permits, a 3D IP geophysical survey, and general corporate purposes.
  • Radius Gold Inc., received from Pan American Silver Corp., a payment of USD $150K in partial fulfillment of the Amalia project JV agreement.
  • Telson Mining Corporation, increased its previously announced non-brokered private placement and now intends to rise $1.4M. Net proceeds will be used to advance the construction of its Tahuehueto mine in Durango and for general working capital.
  • VanGold Mining Corp., concluded its warrant acceleration bonus program announced May 27, 2020 and June 12, 2020 for share purchase warrants ranted in connection with the Company’s 2019 non-brokered private placement financing. In total, 17,159,500 warrants were exercised under the bonus program for 17,159,500 common shares at a price of $0.10 per share for gross proceeds of $1,715,950 (Pinguico project, Guanajuato).
  • Excellon Resources Inc., signed a binding term sheet for a fully subscribed financing of CAD $8M through the private placement of secured convertible debentures of the company. The proceeds will be used to repay the USD $6M bridge loan with Sprott Private Resource Lending II (La Platosa mine, Durango).

ON RESOURCES AND DEVELOPMENT

  • Prime Mining Corp., released surface and underground sampling results from the Tahonitas deposit within its Los Reyes property in Sinaloa. Significant results were obtained at TR-1 with 3.24 g/t Au and 46 g/t Ag over 10.5m, including 8.37 g/t Au and 55 g/t Ag over 3m; TR-2 with 0.72 g/t Au and 18 g/t Ag over 30m, including 1.86 g/t Au and 18 g/t Ag over 7.5M; and TR-3b with 1.78 g/t Au and 71 g/t Ag over 63m, including 11.68 g/t Au and 334 g/t Ag over 4.5m and 5.7 g/t Au and 292 g/t Ag over 6m. The current Tahonitas deposit is modeled as part of a conceptual open pit that includes the Zapote South deposit.
  • Endeavour Silver Corp., reported drill results from the El Curso property at its Guanacevi mine in Durango. A total of 18 drill holes were collared on the Santa Cruz vein, of which 12 hit high grades over mineable widths. Drilling highlights include the following intersections: hole UCM-27 with 3.25 g/t Au and 1,085 g/t Ag (1,410 g/t AgEq) over a true width (TW) of 10m, including 14.88 g/t Au and 5,500 g/t Ag (6,988 g/t AgEq) over a TW of 0.5m; hole UCM-26 with 1.87 g/t Au and 762 g/t Ag (948 g/t AgEq) over a TW of 5.1m, including 3.5 g/t Au and 2,026 g/t Ag (2,376 g/t AgEq) over a TW of 0.6m; and UCM-25 with 1.43 g/t Au and 986 g/t Ag (1,129 g/t AgEq) over a TW of 4.8m, including 7.3 g/t Au and 7,451 g/t Ag (8,181 g/t AgEq) over a TW of 0.5m.

ON DEALS AND CORPORATE ISSUES

  • Discovery Metals Corp., reported results from its annual general meeting of shareholders (Cordero project, Chihuahua).
  • Magna Gold Corp., granted a total of 2, 250,000 incentive stock options to purchase common shares of the company to certain officers, directors and consultants of the company. Such options are exercisable at a price of $0.98 for a period of five years (San Francisco mine, Sonora).
  • One World Lithium Inc., provided a default status report to approve a temporary management cease trade order on the basis that it would be unable to file its annual consolidated financial statements, accompanying management’s discussion and analysis and related CEO and CFO certifications, for the year ended December 31, 2019 (Salar del Diablo project, Baja California Norte).
  • Silver Dollar Resources Inc., appointed Mr. Perry Durning and Mr. Frank (Bud) Hillemeyer as technical advisors to the Company. Perry and Bud formed La Cuesta International Inc. in 1993 and are recognized for their outstanding record of grassroots discoveries, particularly the San Sebastian, San Agustin, and Pitarrilla deposits in Durango, Camino Rojo in Zacatecas, and Los Gatos in Chihuahua.
  • Silver One Resources Inc., announced the initiation of trading on the OTCQX. The OTCQX Best Market provides value and convenience to U.S. investors, brokers and institutions seeking to trade Silver One shares under the ticker symbol SLVRF (Peñasco Quemado project, Sonora).
  • Argonaut Gold Inc., and Alio Gold Inc., completed the business combination to create a North American, diversified precious metals producing company with a strong portfolio of growth assets. Argonaut common shares will continue trading on the TSX, and Alio shares are expected to cease trading on the NYSE American on July 1, 2020 and be de-listed from the TSX after close of business on July 3, 2020 (El Castillo mine, Durango).
  • Brigadier Gold Limited, announced the appointment of Oscar Mendoza as special advisor to review and generate opportunities in Mexico that align with Brigadier’s plan for growth. (Cuatro Ciénegas project, Coahuila).
  • Canuc Resources Corporation, reported results from its annual general meeting of shareholders and appointed a new member of its board of directors (San Javier project, Sonora).
  • Mammoth Resources Inc., reminded shareholders of the granting of a Management Cease Trade Order (Tenoriba project, Chihuahua). “The company found it prudent to employ this Exemption, Instrument 51-502 which enables Mammoth excemptive relief to delay the filing of its audited annual financial statements, the accompanying management’s discussion and analysis, as well as the associated CEO and CFO certifications for the year ended January 31, 2019, due June 1, 2020 and that these filings are expected to be completed within the 45 day period, July 15, 2020”.
  • Sierra Metals Inc., reported results from its annual general meeting of shareholders (Cusi mine, Chihuahua).
  • Defiance Silver Corp., confirmed that the Company’s management is unaware of any material change in the Company’s operations that would account for the recent increase in market activity (San Acacio project, Zacatecas).

ON SOCIAL RESPONSIBILITY

  • Agnico Eagle Mines Limited, launched its policy “Stay Safe Stay Watchful”, as countries where the company operates are cautiously emerging from the global blockade. The company is helping communities and employees to stay safe as they embrace the “new normal.” In order to minimize the spread of this virus. At its Pinos Altos and la India mines in Sonora, Mexico, the decision was made to have the mine’s doctors work at the health centers in the surrounding communities, so they can examine local patients and make home visits to ensure that vulnerable members of the community receive adequate medical care.
  • Minera Penmont (Fresnillo plc), announced that it meets extraction regulations with new technology and innovative tools that allow the protection of the environment, the safety of employees in production plants and the protection of communities and their environment. Minera Penmont has the cyanide management permit from its creation and the origin of its mining activity, which was granted by the Ministry of Environment and Natural Resources (SEMARNAT). In addition, it has the authorization of COFEPRIS and all the permits requested by the General Law of Ecological Balance and Protection of the Environment (LGEEPA). In addition to the previous legislation, Fresnillo plc joined, since 2011, the Cyanide Code, an international voluntary program developed by the International Institute of Cyanide Management (ICMI). This Code was established in 2002 and aims to reduce the potential exposure of workers and communities to harmful concentrations of cyanide; In addition, ICMI conducts audits of processes to recertify Minera Penmont’s credentials every three years; meanwhile, the company exclusively purchases cyanide from manufacturers certified by the Institute. Based on this program, the company works under the following criteria: protect communities and the environment during cyanide transport; protect workers’ health and safety from exposure by this substance and train workers and emergency response personnel in its handling.
  • Consorcio Minero Peña Colorada S.A. de C.V., delivered the Medical Care Unit to the General Hospital of Manzanillo in Colima state. With an investment of MXP $ 4.6M the company carried out the transformation of this 1,200 m2 space, which consisted of conditioning and equipping 3 completely separate and independent medical care modules: general and specialty medical consultation, hospitalization area for men and women, and a dedicated space for major emergencies and observation. This facility has the capacity to serve up to 108 patients a day, originating from Manzanillo, Minatitlán and neighboring municipalities of Jalisco.
  • The Grupo Mexico Foundation, donated approximately 45,000 medical supplies to the Zacatecas Health Secretariat, and three pressure ventilators to the regional hospital of Nueva Rosita, Coahuila. The material received in Zacatecas was: 4,500 masks and 4,337 protective glasses, 4,000 aprons, 6,400 mouth guards, 32 goggles and 25,200 monitor electrodes. Also, nitrile gloves, antiseptic soap and intubation cannulas. All this will help the health authorities to face the current health contingency. In Coahuila, three pressure ventilators were delivered for the care of patients with COVID-19, although the medical director of the hospital pointed out that at the moment there has been no need to use these mechanical ventilators.
  • Minera San Julian (Fresnillo plc), delivered a third package with additional 4,000 face mask to the Municipal Council of Guadalupe y Calvo, Chihuahua, which are made by a sewing workshop in the town of Yerbitas. This personal protective equipment will be distributed to the population of the different towns of the municipality, with the objective of carrying out preventive work in the face of the COVID-19 pandemic.

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, visible gold (VG) in a high sulphidation epithermal system in a prospect in Sonora, Mexico.  Photo by Miguel A Heredia.

GR Silver Mining Reports High-Grade SilverGold Drill Results at Plomosas

GR Silver_22062020

VANCOUVER, BC, June 22, 2020 /CNW/ – GR Silver Mining Ltd. (TSXV: GRSL), (FRANKFURT:GPE), (OTCQB: GRSLF) (“GR Silver Mining” or the “Company”) –
is pleased to announce drill results at its 100%-owned Plomosas Silver Project (“Plomosas Project”) in Sinaloa, Mexico. These results are located in the Plomosas Mine Area, one of six priority areas with a combination of recent (2016 to 2018) and historical drill data being released by the Company.

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

Ptygmatic folds

By Miguel A Heredia

During the twenty five week of the year (June 15th to June 21tt, 2020), at least 44 press releases were announced by companies working in Mexico, with twelve disclosing deals and corporate issues, ten announcing financial rounds, six commenting on Mexican issues, five informing on exploration results, five discussing on social issues, four reporting on resources and developments, and two communicating production and financial results, ON MEXICO ISSUES, Minera Fresnillo published a press release regarding the events of last Friday, June 12, when a group of people committed excesses in the vicinity of the Fresnillo mine in Zacatecas. Fresnillo plc announced recruitment of 130 mine workers who labored at the Francisco I Madero mine in Zacatecas.  Bacanora Lithium announced that it is set to start production at its Sonora project in Mexico in 2022, despite COVID-19 interruptions. Mexico has some of the largest undeveloped Ag deposits that have been slowed by economic weakness and price fluctuations. Senator Miguel Angel Lucero Olivas, president of the Mining and Regional Development commission, will present a point of agreement to maintain the Undersecretariat of Mining and, if possible, raise it to the Secretariat level. ON EXPLORATION, In Sonora, Magna Gold announced plans to conduct initial drill programs at its La Pima, San Judas and Veta Tierra projects. In Sinaloa, Vizsla added a second rig at its Panuco project, and Kootenay released drill results from the first core hole collared at its Copalito project. In Durango, Mithril provided an update on its Copalquin project.  In Jalisco, GoGold released drill results from nine holes collared at its Los Ricos South project. ON MINING, Magna Gold provided an update and reported production and financial results for May 2020 from its San Francisco mine in Sonora. Santacruz reported consolidated Q4 and full year 2019 production and financial results from their Mexican mine operations.  ON FINANCING, Aztec Minerals arranged a non-brokered private placement for gross proceeds of CAD $3M (Cervantes project, Sonora). Candelaria Mining entered in a medium term loan facility for USD $9M (Pinos project, Zacatecas).  Mammoth closed a non-brokered private placement for net proceeds of $141,250, which due to demand was increased to $167,475 (Tenoriba project, Chihuahua). Megastar closed a non-brokered private placement for gross proceeds of $ 926,800 (Rama de Oro, Oaxaca). Telson formed a strategic funding alliance with Accendo Banco for USD $12M (Tahuehueto project, Durango). First Mexican closed the first tranche of its previously announced brokered private placement for gross proceeds of $1,235,229.73 (Guadalupe project, Sonora). GR Silver completed a bought deal private placement for gross proceeds of $9,153,000 (Plomosas project, Sinaloa). Magna Gold announced a non-brokered private placement for gross proceeds of up to $7,000,750 (San Francisco mine, Sonora).  Mexus announced that it has paid $178,855.49 to satisfy an outstanding debt obligation (Santa Elena mine, Sonora). One World Lithium approved a temporary management cease trade order which, if granted, will prohibit trading in securities of the Company by certain insiders of the Company, whether direct or indirect (Salar del Diablo project, Baja California Norte). ON RESOURCES AND DEVELOPMENT, Discovery Metals extended higher grade and expanded the drill program at its Cordero project in Chihuahua. Canuc announced that it signed a Memorandum of Understanding (MoU) with M3SH Technologies Inc., to distribute and sell technological solutions (San Javier project, Sonora). Magna Gold provided plans for its San Francisco mine in Sonora, and reported that a mine design has been completed and plans to advance a pilot test program for its Mercedes project in Sonora.  Sierra Metals released drill results and confirmed the discovery of a new high grade Ag area at its Cusi mine in Chihuahua. ON DEALS AND CORPORATE ISSUES, Bacanora Lithium received notification of the off-market transfer of a portion of the shares beneficially owned by Mark Hohnen (Sonora Lithium project, Sonora).  Fortuna Silver reported results from its annual general meeting of shareholders (San Jose mine, Oaxaca). Oroco announced that its shares have been approved to trade on the OTCQB Venture market in USA (Santo Tomas project, Sinaloa). Prime Mining announced key management changes and amended its Los Reyes option agreement in Sinaloa. Silver Dollar signed a letter of intent (LOI) to acquire La Joya project, Durango from First Majestic.  Newmont was ranked top miner in the 100 best corporate citizens list for 2020 (Peñasquito mine, Zacatecas). Torex announced management changes and results from its annual general meeting of shareholders (El Limón-Guajes mine complex, Guerrero). Tarachi Gold retained Digital 257 Technologies Inc., for digital media and capital market communication services and granted stock options to directors, officers and consultants of the compnay (Juliana project, Sonora).  SilverCrest presented results from its annual general meeting of shareholders (Las Chispas project, Sonora). Silver Spruce granted 6.75M stock options to directors and consultants of the company (Pino de Plata project, Chihuahua). ON SOCIAL RESPONSIBILITY, Mining companies operating in Mexico have shown their support in different ways to face the COVID-19 pandemic. The Grupo Mexico Foundation donated preventive kits to the Fire Department, Red Cross and Civil Protection of the Sonoran capital, and delivered health and safety kits to the Taxco, Guerrero health sector.  Minera Media Luna (Torex Gold), delivered preventive material for the COVID-19 health contingency in the municipalities of Cocula and Valerio Trujano, in Guerrero State. Minera Penmont (Fresnillo plc), strengthened security protocols to guarantee safe and contagion-free workspaces for its collaborators. Mina San Dimas of First Majestic received medical equipment to face contingency for COVID-19.

 ON MEXICO ISSUES

  • Minera Fresnillo (Fresnillo plc), published a press release regarding the events of last Friday, June 12, when a group of people committed excesses in the vicinity of the Fresnillo mine in Zacatecas, in which there were arrests of armed persons. The company initiated legal proceedings before the competent authority. Minera Fresnillo reiterated its respect for union autonomy, and the application of the Mexican rule of law, in particular, current labor legislation. The company also pointed out that there is a disinformation campaign promoted by a group of people that has not been conducted by the institutional media established by the law.
  • Fresnillo plc, announced recruitment of 130 mine workers who labored at the Francisco I Madero mine in Zacatecas. The Francisco I Madero mine was indefinitely suspended a month ago but Fresnillo called them to present their documentation and participate in the contracting process to join the Fresnillo and Saucito mines in Fresnillo, Zacatecas. With this measure, the Mexican mining company will increase its base of collaborators, which will have a positive impact in the region, as 130 new direct and 520 indirect jobs will be generated.
  • Bacanora Lithium plc, announced that it is set to start production at its Sonora project in Mexico in 2022, despite COVID-19 interruptions. The company could benefit from the momentum of a “green recovery” after the pandemic that could spur growth in the electric vehicle market, according to the analyst. The USD $420M project, to be carried out through a 22.5: 77.5% JV with strategic partner Ganfeng Lithium, will be the first to produce significant volumes of lithium in Mexico. Production is estimated to approximate 17,500tonnes per year of lithium carbonate, doubling to 35,000 tonnes starting in 2026 following a USD $380M expansion.
  • Mexico has some of the largest undeveloped Ag deposits that have been slowed by economic weakness and price fluctuations. Four deposits with reserves totaling 178 B Oz Ag remain in the list: Cordero deposit in Chihuahua and owned by Discovery Metals, has resources for 595 M Oz Ag; Pitarrila in Durango, owned by SSR Mining with 552M Oz Ag, Metates in Durango, owned by Chesapeake with 526M Oz Ag; and La Preciosa in Durango owned by Coeur with 105M Oz Ag.
  • Senator Miguel Angel Lucero Olivas, president of the Mining and Regional Development commission, will present a point of agreement to maintain the Undersecretariat of Mining and, if possible, raise it to the Secretariat level. Mexico can gain strength thanks to mining and this is a key point of support for the economic reactivation of the country, therefore it is necessary to have a government agency that can lead and represent a strategic sector such as mining.
  • Undersecretary of Mining, Francisco Quiroga Fernández, assured that the six mines he visited in Sonora are free of COVID-19. He also verified that strict protocols are being applied. So far, there have been no confirmed or probable cases of COVID-19 in any of the resumed Sonoran mines. The Undersecretariat of Mining, previously had already visited other mines in the states of Durango, Chihuahua, Zacatecas, and Coahuila, pointed out that there have been no outbreaks or contagions of COVID-19.

ON EXPLORATION

  • Magna Gold Corp., announced plans to conduct initial drill programs at its La Pima, San Judas and Veta Tierra projects in Sonora. At La Pima, a highly prospective high-grade underground Ag project located 30km NE of the San Francisco open pit, Magna plans to commence a 2,000m core drill program once it completes the permitting process and surface ownership negotiations. At San Judas, located 50 km W of San Francisco open pit, it wants to initiate a first phase of RC drilling in Q4,2020, which will comprises 3,000m to test three of the seven priority targets identified to date. At Veta Tierra, located 5.5 Km NW of the San Francisco open pit, the company wants to re-initiate activities to complete an unfinished drill program that was commenced by Timmins Gold in 2013, which will include 2,000 of RC to test the lateral continuity of the Au mineralization indicated by previous drilling along a 300m trend of an exposed diorite intrusion.
  • Vizsla Resources Corp., added a second rig at its Panuco project in Sinaloa. The company recently resumed its 14,500m drilling program focused on testing over 20 initial drill targets on its unexplored Panuco mining district. To date, only approximately 4,500m have been drilled.
  • Kootenay Silver Inc., released drill results from the first core hole collared at its Copalito project in Sinaloa. The first hole (BDH-20-001) reached a depth of 105.2m and tested the eastern edge of the Cinco Señores vein, returning 106 g/t Ag over 22m, including 1.09 g/t Au and 244 g/t Ag over 3m and including 286 g/t Ag over 1m, and other interval of 0.25 g/t Au and 250 g/t Ag over 5m, including 0.1 g/t Au and 360 g/t Ag over 1m. The 3,500m drill program will continue with the next holes planned to test the Cinco Señores vein where chip sampling returned encouraging Au and Ag values such as 2.9 g/t Au and 426 g/t Ag over 3.2m; 0.24 g/t Au and 401 g/t Ag over 5.3m; 1,155 g/t Ag over 1m; 1.8 g/t Au and 396 g/t Ag over 1m; and 534 g/t Ag over 1m. Five additional principal veins of epithermal affinity remain to be drill tested.
  • Mithril Resources Limited, provided an update on the exploration activities at its Copalquin project in Durango. “A permit for the drill program was issued in 2019 and is being fast tracked and expanded to include additional drill target areas.  All drill pads have been constructed for the initial drill program with clear access tracks established.  Drilling support infrastructure is progressing as planned, ahead of the arrival of the drill rig in the coming weeks”. Drilling will begin at La Soledad target, where over 600m of vein have been mapped at surface with an additional 400m of vein splaying off towards the El Indio mine workings to the east. Drilling will continue at Los Pinos and Los Reyes targets, each with approximately 400m of vein mapped at surface.  These structures are the eastern extension of El Cometa. There are other interesting targets in the property but need further mapping and sampling to better define drill targets.
  • GoGold Resources Inc., released drill results from nine holes collared at its Los Ricos South project in Jalisco, including three at San Juan, four at the main Area, one at Rascadero and one at the East Vein. Significant intersections were encountered in hole LR-GG-174 (Main Area) with 2.56 g/t Au and 173 g/t Ag (4.86 g/t AuEq or 365 g/t AgEq) over 15m, including 8.33 g/t Au and 496 g/t Ag (14.94 g/t AuEq or 1,120 g/t AgEq) over 4.4m; hole LR-GG-169 (San Juan) with 3.18 g/t Au and 188 g/t Ag (5.68 g/t AuEq or 426 g/t AgEq) over 4.1m; and hole LR-GG-178 (East Vein) with 1.09 g/t Au and 97 g/t Ag (2.38 g/t AuEq or 178 AgEq) over 4.4m, including 1.88 g/t Au and 171 g/t Ag (4.17 g/t AuEq or 312 g/t AgEq) over 2.0m.

ON MINING

  • Magna Gold Corp., provided an update on its San Francisco mine in Sonora and reported May 2020 production and financial results. In this period, Magna produced and sold 2,349 Oz Au at an estimated cash cost of USD $607 per Oz, resulting in Au sales of USD $4.2M and an operating profit of USD $2.8M. It also announced the commencement of mining and processing fresh mineralized material in August.
  • Santacruz Silver Mining Ltd., reported Q4 and full year 2019 production and financial results from their Mexican mine operations. In Q4, 2019, Santacruz processed 220,154 tonnes to produce 1.32M Oz AgEq at a cash and AISC of USD $ 18.75 and $21.29 per Oz AgEq produced respectively. It reported revenues of USD $9,964 and a net loss of USD $16,017. In 2019 full year, the company processed 469,291 tonnes to produce 2.83M Oz Ag at a cash and AISC of USD $18.34 and USD $21.55 per Oz AgEq produced respectively. It reported revenues for USD $27,140 and a net loss of USD $20,432.

ON FINANCING

  • Aztec Minerals Corp., arranged a non-brokered private placement financing for gross proceeds of CAD $3M with sophisticated investors, shareholders and directors of the Company. Finder´s fees may be payable in cash and / or warrants on certain portions of the financing, subject to regulatory approvals. Part of the net proceeds will be used to conduct exploration work on its Cervantes porphyry Cu-Au project in Sonora and for general working capital purposes.
  • Candelaria Mining Corp., entered into a medium term loan facility with Accendo Banco S.A. for USD $9M. Funds will be used for financing construction of its Pinos project in Zacatecas and for working capital purposes.
  • Mammoth Resources Corp., closed a non-brokered private placement for net proceeds of $141,250, the same that due to demand was increased to $167,475. Gross proceeds will be used for working capital purposes, including corporate development expenses (Tenoriba project, Chihuahua).
  • Megastar Development Corp., closed a non-brokered private placement for gross proceeds of $926,800. Net proceeds will be used to continue exploration on multiple properties within the Oaxaca, Mexico Au-Ag belt optioned from Minera Zalamera S.A. de C.V. (Yautepec, Magdalena and Rama de Oro projects, Oaxaca).
  • Telson Mining Corporation, formed a strategic funding alliance with Accendo Banco for USD $12M. Funds will be used for the construction of the Tahuehueto mining project in Durango and general working capital purposes. Accendo also intends to purchase up to USD $500K of existing debt with Tahuehueto mining project´s suppliers and convert the debt into common shares of Telson. Additionally, Telson intends to conduct a non-brokered private placement for up to $750K.
  • First Mexican Gold Corp., closed the first tranche of its previously announced brokered private placement for gross proceeds of $$1,235,229.73 (Guadalupe project, Sonora).
  • GR Silver Mining Ltd., completed a previously announced bought deal private placement for gross proceeds of $9,153,000. GR plans to use the net proceeds to fund resource expansion and drilling at its Plomosas and San Marcial projects in Sinaloa, and for working capital and general corporate purposes. Brokers who helped with the financing will receive a cash commission of $636,660 and an aggregate of 2,358,000 non-transferable broker warrants at an issue price for a period of 12 months from the closing date of the offering.
  • Magna Gold Corp., announced a non-brokered private placement for net proceeds of up to $7,000,750 and includes lead investments by Eric Sprott and two mining industry participants. The net proceeds from the private placement will be used for working capital purposes in connection with the company’s existing projects. In connection with the private placement, certain parties may receive a finder’s fee payment equal to 6% of the gross proceeds of the offered shares (San Francisco mine, Sonora).
  • Mexus Gold US, announced that on June 13, 2020 it has paid $178,855.49 to satisfy an outstanding debt obligation (Santa Elena mine, Sonora).
  • One World Lithium Inc., approved a temporary management cease trade order which, if granted, will prohibit trading in securities of the company by certain insiders of the company, whether direct or indirect (Salar del Diablo project, Baja California Norte).

ON RESOURCES AND DEVELOPMENT

  • Discovery Metals Corp., released results from 8 drill holes, and extends higher grade at is Cordero project in Chihuahua. Highlights include hole C20-326 with 2,470 g/t Ag, 0.02 g/t Au, and 0.4% Zn (2,489 g/t AgEq) over 0.7m; hole C20-328 with 69 g/t Ag, 0.13 g/t Au, 1.1% Pb, and 1.9% Zn (197 g/t AgEq) over 51.9m, and 62 g/t Ag, 0.22 g/t Au, 1.2% Pb, and 1.3% Zn (174 g/t AgEq) over 62.2m; and hole C20-330 with 38 g/t Ag, 0.16 g/t Au, 0.8% Pb, and 0.8% Zn (112 g/t AgEq) over 85.5m. Based on results Discover has expanded its drilling program from 30,000-35,000m to 50,000-55,000m and will be focused on: 1) “Targeting of broad zones of breccia-hosted mineralization in the east and north-east of both mineralized corridors and 2) Testing of the width, grade and continuity of extensive high-grade vein systems identified in and adjacent to historical artisanal underground workings during the early history of the Project”.
  • Magna Gold Corp., provided an update on its Mercedes and San Francisco properties in Sonora. It reported that a mine design has been completed for its Mercedes project in Sonora, based on the initial drill program completed last year. It also reported that a suite of metallurgical tests work is currently underway. Magna´s objective is to extract 20K Oz Au with minimal associated operating and capital expenditures to provide additional information on the deposit that will guide future drilling and work programs. At San Francisco mine, it announced the execution of an initial four-month drill program in and around San Francisco and La Chicharra open pits to support the conversion of mineral resources to reserves. Magna also has retained Micon International Limited to complete a PFS to re-evaluate the resource model, examine potential operational improvements, and develop an optimized production schedule that incorporates all currently available drill data, updated operating costs and revised gold price assumptions. It is expected to be completed by the end of July, 2020.
  • Sierra Metals Inc., released drill results and confirmed the discovery of a new high grade Ag area called Northeast-Southwest system of epithermal veins at its Cusi mine in Chihuahua. The new high-grade silver vein system was discovered as a consequence of a combination of mine development work in recent months and confirmatory drilling. Significant drill intersections were encountered in hole DC20M658 with 0.1g/t Au, 304 g/t Ag, 0.34%Pb, and 0.25% Zn (327 g/t AgEq) over a true width (TW) of 9.35m; hole DC20M677 with 0.03 g/t Au, 1,140 g/t Ag, 0.37% Pb, and 0.36% Zn (1,163 g/t AgEq) over a TW of 4.90m; hole DC20M686 with 0.04 g/t Au, 428 g/t Ag, 0.46% Pb, and 0.76% Zn over a TW of 17.45m; and hole DC20M687 with 0.45 g/t Au, 890 g/t Ag, 1.74% Pb, and 3.2% Zn (1,151 g/t AgEq) over a TW of 0.85m.

ON DEALS AND CORPORATE ISSUES

  • Bacanora Lithium plc., received notification of the off-market transfer of a portion of the shares beneficially owned by Mark Hohnen, Executive Chairman of the Company. The transfer is ultimately to an existing superannuation pension fund of Mr. Hohnen (Sonora Lithium project, Sonora).
  • Canuc Resources Corporation, announced that it signed a Memorandum of Understanding (MoU) with M3SH Technologies Inc. This will allow Canuc to distribute and sell technological solutions enabling Canuc to facilitate application with mining and extractive industry clients (San Javier project, Sonora).
  • Fortuna Silver Mines Inc., reported results from its annual general meeting of shareholders (San Jose mine, Oaxaca).
  • Oroco Resource Corp., announced that its shares have been approved to trade on the OTCQB Venture market in USA under the symbol “ORRCF”, effective immediately (Santo Tomas project, Sinaloa).
  • Prime Mining Corp., announced key changes in executive management and board of directors, appointing its new CEO, Executive VP, and two new board members. The company also announced that it entered into an amendment to its option agreement on Los Reyes project in Sinaloa, with Vista Gold Inc. The amendment provides for the cancellation of all ongoing NSR and back-in rights held by Vista, in consideration for accelerating the final USD $1.5M option payment owing to Vista and completing a series of additional cash payments totalling USD $2.1M. “Upon the company making the option payment, Vista will no longer retain a capped NSR on production from open-pit mining and a perpetual NSR on production from underground mining.  In addition, Vista will no longer have the Back-in Right to assume a 49% non-carried interest in any underground mining project developed at the property”.
  • Silver Dollar Resources Inc., signed a letter of intent (LOI) to acquire an initial 80% of interest following the exercise of which it may earn an additional 20% for an aggregate 100% interest in La Joya project, Durango from First Majestic Silver Corp. To acquire an 80% interest in la Joya, Silver Dollar will make a cash payment of $1.3M over four years, issue shares equal to 19.9% of Silver Dollar´s then outstanding common shares within one year, incur $1M of exploration expenditures within the first five years, and grant First Majestic a 2% NSR. If Silver Dollar incurs the exploration expenditures within the first three years; however, First Majestic will waive the remaining $600K – or nearly half – of the cash option payments. Silver Dollar may exercise its second option and acquire the remaining 20% (for an aggregate 100%interest) of the La Joya property by providing notice to First Majestic within 30 days of earning the first 80% interest and issuing to First Majestic additional shares equal to 5% of Silver Dollar’s then-outstanding common shares within five years. If Silver Dollar does not provide such notice, Silver Dollar and First Majestic will enter into a joint venture.
  • Newmont Corporation, was ranked top miner in the 100 best corporate citizens list for 2020. It moved from 20th on last year´s list to 13th overall in 3BL Media´s (formerly Corporate Responsibility Magazine´s) 100 Best Corporate citizens (Peñasquito mine, Zacatecas).
  • Torex Gold Resources Inc., notified management changes and results from its annual general meeting of shareholders. It announced the appointment of its new CEO, Executive Chair, and Independent Director (El Limón-Guajes mine complex, Guerrero).
  • Tarachi Gold Corp., retained Digital 257 Technologies Inc., for digital media and capital market communication services. The Company will compensate Digital 257 $10K per month for three months of service. Tarachi also granted 2,735,000 incentive stock options to directors, officers and consultants of the company at an exercise price of $0.31 per share (Juliana project, Sonora).
  • SilverCrest Metals Inc., presented results from its annual general meeting of shareholders (Las Chispas project, Sonora).
  • Silver Spruce Resources Inc., granted 6.75M stock options to directors and consultants of the company with an exercise price of $0.05 per share (Pino de Plata project, Chihuahua).

ON SOCIAL RESPONSIBILITY

  • Mining companies operating in Mexico, have shown their support in different ways to the communities where they operate to face the COVID-19 pandemic. According to the Mexican Mining Chamber (CAMIMEX), 26 mining companies that operate in 16 entities of the country have made different contributions to the sanitary emergency. The contributions have been of a different nature, including donations of medical equipment and personal protection kits, basic services such as water and electricity, medical services, pantries, etc.
  • The Grupo Mexico Foundation, donated preventive kits to the Fire Department, Red Cross and Civil Protection of Hermosillo, Sonora, in order to support public institutions that work daily for the benefit of the community in the face of the health contingency by COVID-19. The Grupo Mexico Foundation delivered 500 protection kits containing goggles, N95 masks to the Fire Department, 500 kits to Civil Protection, and 300 kits to the Red Cross Delegation in Hermosillo, Sonora. It also delivered 35 health and safety kits to the Taxco, Guerrero health sector such as the Adolfo Prieto General Hospital, the Mexican Red Cross Taxco delegation, the Mexican Institute of Social Security and Civil Protection. The donation consisted of 10 packages of safety kits that include tyvek suits, face shield and gloves, and the donation of 25 health kits consisting of tyvek suits, gloves, caps, shoe covers and disposable aprons.
  • Minera Media Luna (Torex Gold), delivered preventive material for the COVID-19 health contingency and surgical material to strengthen the health infrastructure in the Health Centers and Houses of the communities of Nuevo Balsas, Atzcala, Real del Limón and La Fundición, in the municipality of Cocula and Valerio Trujano and in the neighborhood of Tepecoacuilco, in Guerrero state.
  • Minera Penmont (Fresnillo plc), strengthened security protocols to guarantee safe and contagion-free workspaces for its collaborators. The protocols that the company has implemented have been in accordance with the guidelines defined by the Secretaries of Health, Economy and Labor of the Federal Government. Minera Penmont reinforced the cleaning tasks in all its facilities and disinfection of transport trucks for collaborators and suppliers. It placed disinfectant gel in areas of greater affluence and promoted the use of masks in offices and respirators in operating areas. In addition, it installed sanitary filters in which the health status of the personnel was evaluated with first-class equipment and the latest technology such as infrared thermometers and a thermal imager.
  • Mina San Dimas of First Majestic received medical equipment to face contingency for COVID-19 in the San Dimas communities through the company clinic. It received specialized medical equipment to care for patients with acute respiratory diseases, other equipment including oxygen concentrators, laryngoscopes, as well as a capnograph and a portable emergency ventilator that together have a market price of around USD $65K.

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, ptygmatic folds developed in a meta-sedimentary sequence in an orogenic Au prospect in Michoacan, Mexico.  Photo by Miguel A Heredia.

SIERRA METALS CONFIRMS NEW HIGH-GRADE SILVER ZONE AT ITS CUSI MINE, MEXICO, INCLUDING 17 METERS TRUE-WIDTH OF 428 GRAMS PER TON SILVER, AND PROVIDES AN OPERATIONAL UPDATE

Sierra-Metals-18062020

TORONTO–(BUSINESS WIRE)– Sierra Metals Inc. (TSX: SMT) (BVL: SMT) (NYSE AMERICAN: SMTS) (“Sierra Metals” or “the Company”) announces the discovery of a new high-grade silver zone with significant widths in an area called Northeast – Southwest System of Epithermal Veins and is providing a corporate update for its Cusi Mine in Mexico.

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

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By Jorge Cirett

During the 24th week of the year (June 8th to June 14th, 2020), at least 35 press releases were announced by companies working in Mexico. Notably, 8 of those were exploration updates and 9 related to financing. ON MEXICO ISSUES, Senator Miguel Lucero and a coalition of mining unions proposed the creation of the Mining Secretariat, against the presidential bid to close the Sub-Secretariat of Mining. The Mexican president asked publicly the Canadian ambassador for help to get Canadian mining companies to pay due taxes. First Majestic asked the Canadian ambassador to intervene on the tax dispute. Copper prices have reached $2.60 per pound. Two rival unions were involved in a brawl in Fresnillo, Zacatecas. Francisco Quiroga Sub-Secretary of Mining informed that mines in Mexico are free of confirmed Coronavirus cases. All mines have procedures in place to detect and control outbreaks on transport and work sites. ON EXPLORATION, in Sonora, Silver Viper resumes drilling at La Virginia; Aztec Minerals updated on exploration at its Cervantes project; Colibri presented assay results from grab samples at the Evelyn project. In Chihuahua, Kootenay Silver recommenced drilling at Columba. In Sinaloa, Kootenay Silver restarted drilling at the Copalito property. In Durango, Mithril Resources prepares to drill the Copalquin project. In Jalisco, GoGold Resources began drilling Los Ricos North project. ON MINING, Mexus Gold continues mining at its Santa Elena property. Peñoles is to invest one billion dollars in 2020 in its mining operations. Fresnillo PLC reported on payments to governments of Mexico and Peru. ON FINANCING, Minaurum closed a private placement netting $4.21 M. Discovery closed the second and final tranche of its private placement, accruing C$25 M. Silver Viper commenced trading on the OTCQB in USA. Sonoro Metals realized a third MOU on its Cerro Caliche project, Sonora. Starcore paid its debts and is now debt free. Consolidated Zinc is to raise $0.57 M to purchase equipment. Vangold accelerated the warrant program relating to its 2019 placement. Prime Mining completed the offering for C$10 M. Mag Silver now holds 19.9% of Reyna Silver.   ON RESOURCES AND DEVELOPMENT, Mexican Gold started the fieldwork needed to complete the environmental baseline report at its Las Minas property in Veracruz. Minera Alamos reported more drill results from its Santana project in Sonora. Capstone updated on the mineral resources of its Cozamin mine in Zacatecas, showing a nice increase. ON DEALS AND CORPORATE ISSUES, Magellan Gold is leaving Mexico. Mithril Resources appointed new CEO and Chief Geologist. Sonoro Metals postponed its general meeting. Evrim Resources and Renaissance Gold are merging into a new entity named Orogen Royalties. Silver Spruce optioned the El Mezquite property in Sonora. GR Silver Mining filed on SEDAR the amended technical report on its San Marcial project. ON SOCIAL RESPONSIBILITY. Grupo Mexico, Fresnillo PLC, Argonaut Gold, Bylsa Drilling, Asociación de Real de Minas de San Javier, SilverCrest, Alamos Gold, Agnico Eagle, EMS, Molymex, Metallorum-Autlán, FLSmidth, First Majestic, Gruminex, Peñoles, Barimont, MAC Distribuciones, Dynapro Pumps, Cobre del Mayo, Minera Capela, Peña Colorada and Newmont Corp. informed on a large  array of investments and measures that benefit the mining communities.

ON MEXICO ISSUES

  • Senator Miguel A. Lucero (president of the mining and regional development commission in the senate) proposed the creation of the Mining Secretariat. This was his viewpoint in the rumors that the president Lopez Obrador is about to disappear several sub secretariats on grounds of saving resources. He stressed that the mining industry operates in over 200 municipalities that deserves close attention.
  • The Union Nacional de Sindicatos MineroMetalurgicos de Mexico asked the president Lopez Obrador to evaluate the creation of a Mining Secretariat, to foster national and foreign investment and generate jobs.
  • The President of Mexico, Andres Manuel Lopez Obrador (AMLO) asked publicly the Canadian ambassador for help to get Canadian mining companies to pay due taxes. He stated that the debts are clear and that there is no point on the mining companies to seek legal complaints.
  • First Majestic Silver Corp. has asked Canada’s ambassador to Mexico to intervene in an escalating tax dispute with President Andres Manuel Lopez Obrador’s government. “We’ve been trying to get somebody to the table to finally put this behind us,” First Majestic CEO Keith Neumeyer told Reuters. Neumeyer said the company had proposed three settlement offers since 2018 before launching the trade challenge last month. “Each of the offers has been rebuffed”.
  • Copper prices grew 25% from its March minimums, reaching US$2.60 per Lb thanks to the Chinese recovery.
  • Rival Unions in Fresnillo, Zacatecas, participated in a brawl that resulted in several persons conducted to a nearby hospital for medical care. This arises for a rivalry between the Sindicato Nacional Minero Metalúrgico (FRENTE) and the Sindicato Independiente for representation of workers at the Fresnillo mine.
  • Francisco Quiroga, Sub-Secretary of Mining informed that mines in Mexico are free of confirmed Coronavirus cases. All mines have procedures in place to detect and control outbreaks on transport and work sites.

ON EXPLORATION

  • VanGold Mining Corp. completed a bulk sample and metallurgical test at its Pinguico project in Guanajuato. The 1,039 tonne bulk sample was processed at Endeavour Silver Corp’s Bolañitos mill in Guanajuato, with an average grade of 1.23 gpt AuEq, and a recovery rate of 75.2% Au, 60.4% Ag.
  • Silver Viper Minerals Corp. resumes exploration at its La Virginia project in Sonora. “The recently renewed work program continues Phase II drilling at the El Rubi discovery area, where systematic testing of the structure is being conducted on 50m sectional step outs. A second drill will test exploration targets in and around the El Rubi location”.
  • Kootenay Silver Inc. recommenced drilling at its Columba project in Chihuahua. The initial holes of the remaining 5,200 meters of the phase II 7,000 m program “will focus on expanding the F-vein by following-up on positive results from the first 10 holes of the Program…… Beyond augmenting previously drilled areas the Program will investigate untouched veins mapped out by Kootenay’s geological team”.
  • Aztec Minerals Corp. updated on the exploration of the Cervantes project in Sonora, in advance of the signing of the 65/35 joint venture agreement with Kootenay Silver Inc. Highlights from the 2017 drilling program at the California target include the following intercepts: 160 m @ 0.77 gpt Au (including 80 m @ 1.04 gpt Au, 0.11% Cu); 139 m @ 0.71 gpt Au (including 20 m @ 2.10 gpt Au, 0.16% Cu); 118 m @ 0.63 gpt Au (including 43 m @ 1.18 gpt Au, 0.16% Cu); 122 m @ 0.60 gpt Au (including 62 m @ 0.88 gpt Au, 0.06% Cu); 170 m @ 0.42 gpt Au (including 32 m @ 0.87 gpt Au, 0.06% Cu). Other targets include Purisima East, Estrella, Purisima West and Jasper. Preliminary metallurgical tests have shown 85.1% to 87.7% Au recovery in oxide, 77.9% Au recovery in mixed oxide/sulfide and 51.2% in sulfide.
  • Kootenay Silver Inc. recommenced drilling at its Copalito property in Sinaloa. The 3,000 m drill program was halted due to the Coronavirus lockdown when only one 105.2 m hole had been completed. Over 10 kilometres of untested vein strike has been mapped, with strike lengths up to 2 km and widths from 0.5 m to 15 m. Previously reported grab and channel samples have returned up to 3,770 gpt Ag, 8.2 gpt Au, 17.4% Zn, 9.9% Pb and 1.5% Cu.
  • GoGold Resources Inc. began drilling at the La Trini target, part of the Los Ricos North project in Jalisco. Historical intersections by Tumi Resources include: 24.4 m @ 6.4 gpt Au, 1,629 gpt Ag; 18.3 m @ 3.1 gpt Au, 150 gpt Ag; 6.1 m @ 2.8 gpt Au, 174 gpt Ag; 19.7 m @ 4.9 gpt Au, 193 gpt Ag; 14.1 m @ 4.9 gpt Au, 261 gpt Ag; 10.5 m @ 5.7 gpt Au, 188 gpt Ag.
  • Mithril Resources Ltd. prepares to drill its Copalquin project in Durango. “Drilling and helicopter support contracts have been signed with mobilisation of equipment commencing in June 2020…… Previous drilling has identified three areas with underground mineable grades over potentially mineable widths. These areas are El Refugio, La Soledad and El Cometa (which also include open pit resource potential). Mithril’s drilling campaign will systematically test each of these high-priority areas and will also drill test Los Reyes, Los Pinos, and later La Constancia and the important San Manuel multi-level mine workings”.
  • Colibri Resource Corp. received assays from samples collected on the western part of the Evelyn property in Sonora. The western part of the project is mostly covered by a thin veneer of alluvium and colluvium. More than 50 grab samples have been taken from small areas of sub-crop and outcrop exposed through the cover. “Three samples returned values greater than 2.0 g/t Au, 6 samples returned values greater that 0.25 g/t Au, and a total of 15 samples returned anomalous Au” up to 27.5 gpt Au.

ON MINING

  • Mexus Gold US. continues mining and expects to put 1,800 tons of material in the leach pads by the end of this week, on its Santa Elena mine in Sonora (not to mistake for First Majestic Santa Elena mine, also in Sonora).
  • Industrias Mineras Peñoles. is to invest one billion dollars in Mexico this year, regardless of the economic downturn by the Coronavirus pandemic.
  • Fresnillo PLC. reported on payments done to Mexico and Peru governments derived from its operations in both countries. The company paid in Mexico a total of US$233.7 M in Mexico, of which US$28.6 M were from licences and mining concessions fees.Fresnillo PLC Report on Payments to Governments1

ON FINANCING

  • Minaurum Gold Inc. announced the closing of the previously announced non-brokered private placement, for gross proceeds of $4.21 M, with the prominent participation of Sprott Global Resources Investments Ltd. (Alamos Silver, Sonora).
  • Discovery Metals Corp. closed the second and final tranche of its non-brokered private placement for aggregate proceeds of C$25 M. “The Company also announces it has received approval by the Mexican government to resume operations at its Cordero project with strict COVID-19 health and safety protocols”. The company has over $40 M in cash on its balance sheet (Cordero, Chihuahua).
  • Silver Viper Minerals Corp. commenced trading on the OTCQB Venture Market in the United States (La Virginia, Sonora).
  • Sonoro Metals Corp. executed a third memorandum of understanding (MoU) for the finance and development of its proposed Cerro Caliche Heap Leach Pilot Operation. As of February 28, 2020, Sonoro had received two executed MoUs regarding project debt financing and EPC services for its proposed Cerro Caliche heap leach (Cerro Caliche, Sonora).
  • Starcore International Mines Ltd. reported that the company paid out CAD$3 M of secured bonds plus accrued interest of CAD$235.4 K. In addition to this, the company also repaid a US$1 M loan. The payments were made from the Company’s cash flow generated from mine operations and prior asset sales (San Martin mine, Queretaro).
  • Consolidated Zinc Ltd. announced firm commitments to raise a further $0.57 M via a single tranche placement. “Funds raised from the Placement will be applied towards the purchase of equipment to increase efficiencies at Plomosas, working capital and offer costs” (Plomosas, Chihuahua).
  • VanGold Mining Corp. announced that to date the warrant acceleration program in connection with the company’s 2019 placement has rendered $1.16 M in gross proceeds of which $650 K were accrued by the exercise of warrants by Vangold’s directors and officers. “…funding for a portion of the exercise of warrants by directors and officers was facilitated through the sale of a portion their existing share holdings” (El Pinguico, Zacatecas).
  • Prime Mining Corp. announced the completion of the offering for gross proceeds of C$10 M (Los Reyes, Sinaloa).
  • Mag Silver Corp. has acquired 14.55 M shares of Reyna Silver Corp., owning to date 19.9% of its outstanding shares.

ON RESOURCES AND DEVELOPMENT

  • Mexican Gold Mining Corp. announced “that fieldwork towards completing an environmental baseline study has commenced at the Las Minas project. Drilling at Las Minas is scheduled to commence in early July”.
  • Minera Alamos Inc. reported more drilling results from its Phase II program at its Santana project in Sonora. The results further expand mineralization to the SW, and confirm the depth potential previously identified. Highlighted core length intervals comprise: 202.7 m @ 0.51 gpt Au; 105.6 m @ 0.31 gpt Au, 50.9 m @ 0.34 gpt Au; 90.0 m @ 0.40 gpt Au; 43.3 m @ 0.61 gpt Au; 42.5 m @ 0.36 gpt Au; 62.5 m @ 0.31 gpt Au, 188.2 m @ 0.28 gpt Au.
  • Capstone Mining Corp. updated the mineral resource estimate for the Cozamin mine in Zacatecas.cozamin-june2020-resource-estimate-update1cozamin-june2020-resource-estimate-update21

ON DEALS AND CORPORATE ISSUES

  • Magellan Gold Corp. is redirecting its focus toward opportunities within the United States. “the company has divested all of its Mexico operations through the sale of its subsidiary Magellan Acquisition Corp.”. Among the operations divested is the SDA mill and the El Dorado property, both in Nayarit.
  • Mithril Resources Ltd. appointed John Skeet as its new CEO and Hall Stewart as its Chief Geologist (Copalquin, Durango)
  • Sonoro Metals Corp. postponed its annual general meeting to September 4, 2020 (Cerro Caliche, Sonora).
  • Evrim Resources Corp. and Renaissance Gold Inc. entered into an agreement to combine in a merger of equals “in which Evrim will acquire all of the outstanding common shares of Renaissance through a share exchange transaction to create a new company, to be named Orogen Royalties Inc. Orogen will focus on project generation as has been the history of both Evrim and Renaissance but with a renewed focus on organic royalty creation and royalty acquisition” (royalty in Ermitaño, Sonora).
  • Silver Spruce Resources Inc. signed a binding option agreement with Colibri Resources Corp. to acquire 50% interest in its wholly owned Mexican subsidiary Yaque Minerals S.A. de C.V., which holds the El Mezquite project in Sonora. El Mezquite is 12 Km NE of the Santana property, currently under mine development by Minera Alamos. To obtain 50% interest Silver Spruce has to pay US$82.5 K by September 1, 2020, US$127.5 K by September 1, 2021, and CDN$500 K for a debenture due in October 2023. The company will have the option to pay US$107.5 K by December 31, 2020 to complete the cash acquisition for a discounted total of US$190 K. Minimum work expenditures total US$600 K on the four year term of the agreement. A 1% royalty to the original vendors of the property can be purchased for US500 K at any time.
  • GR Silver Mining Ltd. filed on SEDAR its amended technical report on resources estimation of its San Marcial project in Sinaloa. There are 12 amendments in different parts of the report, with no material differences on the resource estimation.

ON SOCIAL RESPONSIBILITY

  • In Sonora more than 125 thousand persons in 30 municipalities and 47 rural communities have received support by 13 mining companies and six service providers: Grupo México, Fresnillo Plc, Argonaut Gold, Bylsa Drilling, Asociación de Real de Minas de San Javier, SilverCrest, Alamos Gold, Agnico Eagle, EMS, Molymex, Metallorum-Autlán, FLSmidth, First Majestic, Gruminex, Peñoles, Barimont, MAC Distribuciones, Dynapro Pumps and Cobre del Mayo).
  • The mining sector in Mexico strives nowadays for social co-responsibility between community, government and enterprises, where the communities define their needs and priorities, the government complies with its responsibilities and enterprises promote and provide resources, organize community committees and develop executive projects.
  • The world day of the environment was held in Teloloapan, Guerrero, with the presence of Efrén Romero, municipal president, Army members and Minera Capela executives.
  • In Cuencamé, Durango, a road work investment of 11 million pesos was inaugurated by Luly Martínez. Municipal president. The investment was made possible with resources from the Mining Fund.
  • Agnico Eagle received the Environmental Excellence Award from the Mining Association in Canada, for its work in Pinos Altos, Chihuahua, where was developed an ultra-high density grazing initiative.
  • Peña Colorada builds a medical facility in Manzanillo. With an investment of 4 M pesos, the facility will count with an area for patient care, and another area for the rest of the medical personnel, as this new building is by the side of the Hospital General de Manzanillo.
  • Newmont Corp. published its 2019 sustainability report. The report displays all the work planned and done by the company as it strives to better its environmental, social and governmental imprint in Mexico.
  • Bylsa Drilling efforts on social responsibility on the communities neighboring the Las Chispas and Alamos Silver projects in Sonora were commended by governor Claudia Pavlovich.
  • The Mining Fund provided the resources to build the Doctores Avenue in Fresnillo, Zacatecas. The 27.14 million pesos invested funded 670 m of paving and drainage construction.
  • Grupo Mexico restated its compromise on the state of Chihuahua with the donation of a termo-cycler to the State Health Laboratory. Previously the company had donated five mechanical ventilators to the University Central Hospital, same that shortly is to receive 25 non-invasive ventilators more.

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

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

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

tight folds

By Miguel A Heredia

During the twenty three week of the year (June 1st to June 7th, 2020), at least 49 press releases were announced by companies working in Mexico, with fifteen commenting on Mexican issues, twelve communicating resumptions, production and financial results, six announcing financial rounds, five discussing on social issues, five reporting on resources and developments, three disclosing deals and corporate issues, and three informing on exploration results.  ON MEXICO ISSUES, The Undersecretary of Mining and the state Governors declared that the resumption of the mining activities in the first week of June has been successful. Francisco Quiroga, the Undersecretary of Mining, stated that the mining sector will sustain part of the national economic recovery after the COVID-19 pandemic.  The Mexican government, in a very unfortunate statement, declared that it is analyzing the possibility to disappear the Undersecretariat of Mining. Fernando Alanís, president of the Mexican Mining Chamber (Camimex), stated that Mexico’s mining production would drop 17% this year due to coronavirus pandemic. The deputy of the PRI, Carlos Pavón Campos, will present a proposal requesting that the Mining Fund returns to be used in accordance to its original objective. Esperanza Silver de México (Alamos Gold Inc.) announced that it expects to create hundreds of direct + indirect jobs if they open its Esperanza mine in Morelos. According to Fernando Alanis, president of the Mining Chamber of Mexico (CAMIMEX), mining companies plan to invest USD $4B in 2020.  Resuming of the mining activities in Oaxaca will activate 10,000 jobs. ON EXPLORATION, In Sinaloa, Vizsla recommenced drilling at its Panuco project. In Zacatecas, Advance Gold provided an exploration update on its Tabasqueña project. In Jalisco, GoGold resumed drilling at its Los Ricos project.  ON MINING, Several mining, such as GoGold, Great Panther, Avino, Argonaut, Impact Silver, Pan American Silver, Telson, Excellon, and Sierra Metals among others, announced the restart of their Mexican mining operations after receiving approval of the Mexican Social Security Institute (IMSS).  Mexus Gold reported its May 2020 production results from its Santa Elena mine in Sonora. US Antimony reported its Sb and zeolite production for the month of May 2020. Excellon presented Q1 2020 production and financial results (La Platosa, Durango).  ON FINANCING, Advance Gold announced a non-brokered private placement for gross proceeds of up to $300K (Tabasqueña project, Zacatecas). Discovery Metals closed the first tranche of a CAD $35M non brokered private placement, for aggregates proceeds of CAD $17.1M (Cordero project, Chihuahua). Magna Gold closed its previously announced non-brokered private placement for gross proceeds of $7M (San Francisco mine, Sonora). Silver Viper closed its previously brokered private placement for gross proceeds of CAD $5.12M (La Virginia project, Sonora). Alamos Gold declared quarterly dividends of USD $0.015 per common share (Mulatos mine, Sonora).  Pan American Silver announced the closing of its overnight marketed secondary offering of common shares of Maverix Metals Inc., in which it raised gross proceeds of USD $45.54M (La Colorada mine, Zacatecas).  ON RESOURCES AND DEVELOPMENT, VanGold concluded its +1,000 tonnes bulk sample and metallurgical test of mineral material from its Pinguino project in Guanajuato. Premier announced an update on its delineation core drilling program at its Mercedes mine in Sonora. US Antimony reported that a thickener circuit is being constructed on site at its Puerto Blanco mill in Guanajuato.  Endeavour released new high grade Au-Ag drill results from its Guanacevi mine in Durango. Golden Minerals President & CEO spoke about its Velardeña and Rodeo projects in Durango and its intention to bring them into production in 2021.   ON DEALS AND CORPORATE ISSUES, Canuc postponed the filing of its interim consolidated financial statement and management´s discussion and analysis for the period ended March 31, 2020 due to the COVID-19 pandemic (San Javier project, Sonora).  San Marco granted stock options to directors and officers (Chunibas project, Sonora). Newmont published its 2019 sustainability report (Peñasquito mine, Zacatecas).  ON SOCIAL RESPONSIBILITY, Consorcio Minero Peña Colorada invested MXP $4M to refurbish health unit in Manzanillo, Colima. The Grupo Mexico Foundation delivered important donation to the Health Sector of Chihuahua and Sombrerete, Zacatecas. Minera Cuzcatlán (Fortuna Silver) donated medical ventilator, pantries, medicines and cleaning kits in Oaxaca. Minera San Julián (Fresnillo plc) delivered a mechanical ventilator and personal protection equipment to medical personnel of the Mexican Social Security Institute (IMSS) of Parral, Chihuahua.

ON MEXICO ISSUES

  • The Undersecretary of Mining and the state governments, declared that the resumption of the mining activities in the first week of June has been successful. Almost 90% of the companies in the sector are already on work, thanks to the support of Francisco Quiroga, the Undersecretary of Mining of the Ministry of Economy, who established agreements with Governors of the states and with the companies, so that they could return to work safely and without risk of COVID-19 infections. The remaining 10% of mining companies are preparing sanitary protocols to resume activities in the coming days.
  • Francisco Quiroga, the Undersecretary of Mining, stated that the mining sector will sustain part of the national economic recovery after the COVID-19 pandemic. Activities derived from the mining industry serve to maintain various communities and even in some areas is the main source of economy. The mining sector is carrying out its reactivation of activities in a progressive way and with respect to health protocols. The sector has always worked with rigorous safety protocols to carry out its activities,
  • The Mexican government, in a very unfortunate statement, declared that it is analyzing the possibility to disappear the Undersecretariat of Mining. The measure would be in complete contradiction to the recent recognition of mining as an essential sector that generates 2.6 million jobs, has an impact in 10 states of the country and represents around 3% of GDP. The president AMLO has suggested the imminent disappearance, conversion, or inclusion in another agency, in order to reduce public spending. It occurs just when the Undersecretary of Mining, Francisco Quiroga, reached agreements with Governors, and the mining companies and their representatives have worked hard in a coordinated way to implement the security protocols. Entrepreneurs in this area, both Mexican and foreign, consider that the disappearance of the Undersecretariat of Mining may be negative for a sector that represents around 8% of industrial GDP. The panorama is worrying, since it seems to show the little interest of the current administration to encourage the development of the mining sector. Mining companies and their representatives see this measure as a setback for the country´s development. AMLO stated that to date, none decision has been taken so far, and recognized that mining is a fundamental economic activity that generates many jobs in the case of Sonora, Chihuahua, Durango, and the rest of the mining states.
  • Fernando Alanís, president of the Mexican Mining Chamber (Camimex), stated that Mexico’s mining production would drop 17% this year and the sector´s export could decrease by around 10% due to the cessation of operations to contain the spread of the coronavirus. He also said that although activities in the industry were beginning to resume and about half of the operating personnel had returned to work, exploration work remained suspended and anticipated that the pandemic would also have ended with some 71,000 indirect jobs in the local sector.
  • The deputy of the PRI, Carlos Pavón Campos, will present a proposal in the Chamber of Deputies, requiring that the Mining Fund returns to carry out infrastructure works in the municipalities of the country where mining activity is performed, with the purpose of promoting the development of the communities, which was its original objective.
  • Esperanza Silver de México (Alamos Gold Inc.), announced that it expects to create hundreds of direct + indirect jobs if they open its Esperanza mine in Morelos. Esperanza Silver, under the scheme of a “New Model of Social and Environmentally Responsible Mining” policy, wants to bring its project to the community of Tetlama to protect the environment and generate employment that is essential for the economic reactivation of the state due to the direct + indirect jobs that will be generated, the value chains and supplies that will be activated, and the generation of taxes that will favorably impact state and municipal public finances. The company has projected an estimated investment of USD $450M to bring into production its mining project.
  • According to Fernando Alanis, president of the Mining Chamber of Mexico (CAMIMEX), mining companies plan to invest USD $4B in 2020, which represents 14% more than in 2019, despite the COVID-19 health crisis.
  • Resuming of the mining activities in Oaxaca, will activate 10,000 jobs. The mining personnel will carry out all the health and training protocols to avoid COVID-19 infections, supervised by the Mexican Social Security Institute (IMSS).

ON EXPLORATION

  • Vizsla Resources Corp., announced that it has re-commenced drilling at its Panuco project in Sinaloa. It had previously announced the return of its staff to the project on May 21, 2020 to execute its exploration program at its district-scale project.
  • Advance Gold Corp., provided an update on its Tabasqueña project in Zacatecas. The CEO of the company stated that they have hit what appears to be a very large sulphide system with their recent drilling program collared into a 3.2Km continuous IP chargeability anomaly. These holes encountered promising grades in the stacked lenses of disseminated sulphides. Next step will be to drill the core of the system on the hinge zone of the IP chargeability anomaly, where it increases in width, to confirm the identified mineralization.
  • GoGold Resources Inc., resumed drilling at its Los Ricos project in Jalisco. The Company is nearing completion of resource drilling at Los Ricos South for its upcoming 43-101 compliant resource calculation.

ON MINING

  • Several mining companies, such as GoGold, Great Panther, Avino, Argonaut, Impact Silver, Pan American Silver, Telson, Excellon, and Sierra Metals, among others, announced the restart of their Mexican mining operations following a government order adding mining to the list of essential services, and after receiving approval from the Mexican Social Security Institute (IMSS).
  • Mexus Gold US, reported May 2020 production results from its Santa Elena mine in Sonora. It produced 102 Oz Au. The company announced that it plans to produce 150 Oz Au in June 2020. The heap leach pad at the Santa Elena mine currently holds 18,000 tons of mineralized material. Head grades are estimated at 3 to 4 g/t Au.
  • US Antimony Corporation, announced that it produced 108.9K Lb Sb and 1,129 tonnes of zeolites during the month of May 2020.
  • Excellon Resources Inc., presented Q1 2020 production and financial results from its La Platosa mine in Durango. It processed 19,042 tonnes of 542 g/t Ag, 5.4% Pb and 6.8% Zn to produce 296.3K Oz Ag, 1.89M Lb Pb, and 2.1M Lb Zn (or 523.7K Oz AgEq) with metallurgical recoveries of 89.3%, 82.8%, and 74.9% respectively.  Total cash and AISC of USD $15.35 and USD $26.52 per Oz Ag payable was reported respectively. The company had revenues of USD $6.6M, gross loss of USD $0.1M, cash and cash equivalents of USD $8.4M.

ON FINANCING

  • Advance Gold Corp., announced a non-brokered private placement to raise gross proceeds for a maximum of $300K. Net proceeds will be used to advance its Tabasqueña project in Zacatecas and for general corporate purposes.
  • Discovery Metals Corp., closed the first tranche of a CAD $35M non brokered private placement, for aggregates proceeds of CAD $17.1M. Discovery intends to close a further CAD$7,9M in subscriptions in a second tranche of the private placement, for an aggregate total of CAD $25M. Net proceeds of the first tranche will be used to fund their Cordero and Coahuila projects in Chihuahua and Coahuila states respectively, and for general working capital purposes.
  • Magna Gold Corp., closed its previously announced non-brokered private placement for gross proceeds of $7M. Gross proceeds will be used for working capital purposes in connection with their existing projects (San Francisco mine and Mercedes and San Judas projects, Sonora).
  • Silver Viper Minerals Inc., closed its previously announced brokered private placement for gross proceeds of CAD $5.12M. A cash commission of CAD $218,770 was paid to the brokers, representing a 6% of the gross proceeds. Silver Viper will be used the net proceeds to fund the development of its Virginia project in Sonora, and for working capital and general corporate purposes.
  • Alamos Gold Inc., declared quarterly dividends of USD $0.015 per common share. The company has paid dividends for 11 consecutive years during which time USD $173M has been returned to shareholders through dividends and share buybacks.
  • Pan American Silver Corp., announced the closing of its overnight marketed secondary offering of common shares of Maverix Metals Inc., in which Pan American raised gross proceeds of USD $45.54M (La Colorada mine, Zacatecas).

ON RESOURCES AND DEVELOPMENT

  • VanGold Mining , concluded its +1,000 tonnes bulk sample and metallurgical test of mineral material from its Pinguino project in Guanajuato. This bulk sample was sent to Endeavour’s Bolañitos mill, located approximately 28km from El Pinguico project. The company will report the results obtained once the information is received. On the other hand, crews are clearing the bottom of the El Pinguino shaft since approximately 30 m of debris has accumulated at the bottom. Once it is done, VanGold plans to sample the bottom of the underground stockpile in order to determine if the grades of Au and Ag obtained on the top of the stockpile extends to the bottom of it; inspecting the #7 Sangria adit since it may provide a potential safe and inexpensive haulage way to bring the underground material to surface; and sample the Colmillo stope since it was a high grade portion of the Pinguico mine during the period prior to its closure in 1913.
  • Premier Gold Mines Limited, announced an update on its delineation core drilling program at its Mercedes mine in Sonora. The 2020 delineation drilling campaign is focused on expanding and confirming higher-grade mineralization in several areas including Marianas and Diluvio West. Highlights at Diluvio West include hole UG-DI20-096 with 6.1 g/t Au and 23 g/t Ag over 84.7m, and hole UG-DI20-095 with 6.38 g/t Au and 14 g/t Ag over 73.5m. At Marianas, good drill intersections were encountered at hole UG-MR20-056 with 11.67 g/t Au and 56g/t Ag over 5.2m and hole UG-MR20-059 with 9.74 g/t Au and 16 g/t Ag over 11.3m. Diluvio consists of a stockwork system that is divided into Diluvio Central, hosted in felsic volcanoclastic, and Diluvio West hosted in an andesite while Marianas represents the down-plunge extension of the main Mercedes mine trend.
  • US Antimony Corporation, reported that a thickener circuit is being constructed on site at its Puerto Blanco mill in Guanajuato to increase the production rate and control the pulp density of ore to be processed. “The company is anxious to continue on the cyanide leach of the gold and silver Los Juarez ore now that they will have a thickener.”
  • Endeavour Silver Corp., released drill results of 18 holes collared in the Santa Cruz vein on the El Curso property at its Guanacevi mine in Durango, of which 12 holes reported new high grade Au-Ag values over minable widths. Drilling highlights include hole UCM-27 with 3.25 g/t Au and 1,085 g/t Ag (1,410 g/t AgEq) over a true width (TW) of 10m; hole UCM-26 with 1.87 g/t Au and 762 g/t Ag (949 g/t AgEq) over a TW of 5.1m; and hole UCM-25 with 1.43 g/t Au and 986 g/t Ag (1,129 g/t AgEq) over a TW of 4.8m. This drilling program confirmed the extension of the P4 orebody, and now the extension measures 200 m long by 300 m deep, still open at depth, and discovered a new mineralized zone to the west of the P4 extension of 250 m long by 150 m deep, still open along strike and at depth.
  • Golden Minerals Company President & CEO, spoke about its Velardeña and Rodeo projects in Durango and its intention to bring them into production in 2021. The company is currently generating revenue through the lease of its oxide mill in Mexico to Hecla Mining Company, and intends to bring into production its Rodeo open pit Au project in 2021 after the lease concludes with Hecla at the end of 2020. Rodeo, according to the PEA “is capable to provide almost USD $25M in after-tax cash flow in two years of production. The goal of the company is to use the cash generated from Rodeo to finance a potential startup for its Ag-Au Velardeña project. Velardeña’s 2020 PEA shows an USD $86M NPV”.

 ON DEALS AND CORPORATE ISSUES

  • Canuc Resources Corporation, postponed the filing of its interim consolidated financial statement and management´s discussion and analysis for the period ended March 31, 2020 due to the COVID-19 pandemic (San Javier project, Sonora).
  • San Marco Resources Inc. granted stock options to directors and officers (Chunibas project, Sonora).
  • Newmont Corporation, published its 2019 sustainability report, “Beyond the Mine”, a transparent and comprehensive disclosure of the Company’s environmental, social and governance (ESG) performance.

ON SOCIAL RESPONSIBILITY

  • Consorcio Minero Peña Colorada S.A. de C.V., invested MXP $4M to reconvert a building attached to the Manzanillo General Hospital, providing it with medical equipment and furniture for 3 medical care modules and one more for the rest of medical personnel.
  • The Grupo Mexico Foundation, delivered important donation to the Health Sector of Chihuahua, which consisted of five new mechanical ventilators, 15,000 medical equipment consisting of N-95 masks, disposable gowns, face masks, goggles, overalls, boot covers, respirators, aprons and gloves, as well as ultrasound equipment, portable X-rays and monitoring panels. The donation also included 25 non-invasive ventilators and 10,000 serological tests for COVID-19, which will allow detecting a greater number of people infected and have a broader overview of the behavior of the disease in the state. Additionally, Grupo México Foundation also joined the Chihuahua Food Program, by donating 650 pantries to support vulnerable groups in the municipalities of Aquiles Serdán and Santa Bárbara. In Sombrerete, Zacatecas, the Grupo Mexico Foundation also delivered more than 1,700 articles of medical supplies consisting of tyvek coveralls, N95 masks, face shields, disposable gowns and boot covers, and alcohol gel, and donated 700 pantries to the municipality of Sombrerete through the Municipal DIF to be distributed among the groups most at risk from this epidemic, as is the case of older adults in the Divine Providence Asylum that received 40 pantries with items from the basic food basket.
  • Compañía Minera Cuzcatlán (Fortuna Silver Mines Inc., donated MXP $1.3M to the Business Contingent Exchange and the Medical Support Program promoted by the Oaxaca Ministry of Economy to buy an equipment for ventilation and respiratory monitoring in the Intensive care unit, and delivered more than 3,300 pantries, 3,400 family cleaning packages and 4,600 medicines to the population of San José del Progreso and communities close to the operation of the San José mining unit. It is estimated that these actions have benefited more than 7,000 Oaxacans.
  • Minera San Julián (Fresnillo plc), delivered a mechanical ventilator equipment to the Mexican Social Security Institute (IMSS) of Parral, Chihuahua and donated more than 2,000 pieces of personal protective equipment such as 50 tyvek suits, 200 N-95 face masks, 200 surgical fabric mouth masks, 600 mine-made mouth masks, 1,000 pairs of nitrile gloves and 50 safety glasses to employees of the health institution.

 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, tight folds in an orogenic Au prospect in Michoacan, Mexico.  Photo by Miguel A Heredia.

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

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By Jorge Cirett

During the 22nd week of the year (May 24th to May 31st, 2020), at least 36 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, Francisco Quiroga, subsecretary of mining had a very active week by reviewing personally the health protocols put in place by mining companies in several states, as well as being present on the installation of regional mining committees in a handful of states, before the full re-start of mining operations allowed by the government. BNamericas presented a list of 24 mining projects going ahead in Mexico from 2020 to 2026, with a capital investment of US$7,450 M. Mining companies scrambled on the restart of operations permitted by the government with the inclusion of the industry in the category of essential activities that can operate during the Coronavirus emergency. ON EXPLORATION, in Sonora, Ridgestone Mining resumed activities at its Rebeico project. In Chihuahua, Kootenay Silver released results from drilling at its Columba project; Mammoth Resources announced Centerra is returning for exploration work at its Tenoriba project. In Nayarit, Candente Gold is to rehabilitate underground workings to advance its El Dorado project. In Zacatecas, Defiance Silver delineated several targets at the San Acacio property. ON MINING, Sierra Metals, Impact Silver, Mexus Gold, Fortuna Silver, Gold Resource, Endeavour Silver and Aura Minerals announced the recommencement of activities, following the government easing of restrictions on mining. Impact Silver and Discovery Metals reported first quarter 2020 results. GR Silver Mining is postponing the filing of first quarter 2020 results, under the blanket relief granted by the regulatory authorities in Canada. ON FINANCING, in a pretty busy week, 16 companies made announcements related to their financing.  Canasil Resources granted 1.75 M options. Orex Minerals intends to raise up $2 M. Silver Tiger Metals is now trading on the OTCQB quotation system in the US. Vangold Mining accelerated a warrant bonus program in connection with its 2019 private placement. Equinox Gold saw warrants exercised for $145 M. Southern Silver Exploration extended the expiry date of some warrants for two years. Ridgestone Mining is now listed in the Frankfurt Stock Exchange. Aztec Mining engaged a Swiss investor relations firm for European exposure. Vizsla Resources is pursuing a financing round for C$4 M. DynaResources closed a financing agreement for $3.9 M. Minaurum Gold closed its private placement grossing $5 M. Telson closed the second tranche of its private placement for $196.6 K. Golden Tag Announced a non-brokered private placement for up to $1.12 M. Solaris Resources raised C$20 M. Mammoth Resources announced a private placement for up to $131 K. Consolidated Zn intends to raise up to $1.73 M.   ON RESOURCES AND DEVELOPMENT, Mexican Gold Mining is working on the PEA for its Las Minas project in Veracruz. Golden Minerals filed the PEA on Rodeo, Durango. Bacanora Lithium updated on activities to further advance its Sonora Lithium project. Discovery Metals has completed 15,000 m of its 30,000 m phase 1 drill program at its Cordero project in Chihuahua. ON DEALS AND CORPORATE ISSUES, Mithril completed the acquisition of Sun Minerals, obtaining thus the Copalquin project in Durango. Candente Gold amended the memorandum of understanding to acquire the El Dorado property and the SDA mill in Nayarit. Sonora Metals published and filed a new version of the Cerro Caliche development report, as requested by the British Columbia Securities Commission. ON SOCIAL RESPONSIBILITY. Minera Peña Colorada, Grupo Mexico, Fresnillo PLC, Minera Real Bonanza and the mining industry in Sonora  informed on donations and work realized to aid communities, mainly on subjects related to the Coronavirus emergency, like medical supplies and equipment, comprising also a large array of investments and measures that benefit the mining communities.

ON MEXICO ISSUES

  • Francisco Quiroga, subsecretary of Mining, personally verified the application of safety protocols to re-start operations in mines. Quiroga visited Agnico Eagle’s Pinos Altos, Grupo Mexico’s Santa Barbara and Frisco’s Concheño mines in Chihuahua. He will also review protocols in Durango, Zacatecas and Coahuila.
  • The fourth virtual personnel hiring session was held by La Cantera Desarrollos Mineros in Zacatecas.
  • The silver price has seen its strongest monthly growth in almost seven years. Prices have reached up to $17.69 per ounce.
  • The Regional Committee for the Development of Mining Zones was constituted in Durango.
  • Mining Companies are to re-start operations on June 1, 2020. Dozens of mining companies prepare to re-commence mining and processing activities, reviewing its health and work protocols.
  • The Regional Committee for the Development of Mining Zones was installed in Zacatecas. The governor Alejandro Tello, the Camimex president, Fernando Alanís and the Mining subsecretary Francisco Quiroga were in the event that also saw the presence of representatives of Fresnillo PLC, Industrias Peñoles, Minera Frsico, Capstone Gold, Excellon Resources, Newmont, Aura Minerals, Arian Silver, Grupo Mexico, Impulsora Minera Santacruz, First Majestic, Grupo Minera Candelaria, Minera Camino Rojo, and Minas de San Nicolás.
  • The subsecretary of Mining Francisco Quiroga reviewed the sanitary procedures of Minera El Roble.
  • Peñasquito restarted operations in Zacatecas, after the review of the health protocol by Francisco Quiroga, subsecretary of mining.
  • Bnamericas presented a list of mining projects going forward in 2020-2026 with a capital investment of US$7,450 M, notwithstanding the pandemic induced stoppages. A total of 24 projects would increase the annual production by 1.5 M Oz Au, 33 M Oz Ag and 247 K tonnes Cu to 2026.Bnamericas table, Mining Projects 2020-2026

ON EXPLORATION

  • Kootenay Silver Inc. released results from four more drill holes at its Columba project in Chihuahua. Highlighted core length intervals comprise: 1.06 m @ 259 gpt Ag; 7.0 m @ 124 gpt Ag (including 3.6 m @ 197 gpt Ag); 2.8 m @ 762 gpt Ag (including, 1.0 m @ 2,010 gpt Ag); 10.2 m @ 68 gpt Ag (including 0.65 m @ 368 gpt Ag); 4.4 m @ 209 gpt Ag (including 1.4 m @ 484 gpt Ag); 38 m @ 50 gpt Ag (including 0.45 m @ 486 gpt Ag); 6.0 m @ 317 gpt Ag (including 2.0 m @ 865 gpt Ag); 36 m @ 72 gpt Ag (including 1.1 m @ 769 gpt Ag and 4.36 m @ 317 gpt Ag). Drill results show continuity and high grades along nearly 600 meters of strike on the F Vein at depths from 15 to 200 meters.
  • Ridgestone Mining Inc. has resumed activities at its Rebeico project in Sonora. “Core samples from the first three drill holes at the New Year Zone, which encountered abundant sulphides, have been sent to ALS Chemex in Hermosillo for assaying”.
  • Mammoth Resources Corp. announced the return of Centerra Gold Inc. personnel to Mammoth’s Tenoriba project in Chihuahua.
  • Candente Gold Corp. is planning underground work on the El Dorado project in Las Minitas, Nayarit. Rehabilitation of underground workings is to aid in the construction of a 3-D model of unmined blocks and vein structure, to guide potential mining/extraction operations. Drill data from the 2010-2011 campaign would be also incorporated.
  • Defiance Silver Corp. announced the delineation of multiple targets at is San Acacio project in Zacatecas, which include a 1.3 Km by 300 m corridor where a hanging wall mineralizing event has been identified, deep targets along the Veta Grande strike to the SE, and the El Mirador part of the multi-km long La Veta Morada fault. Re-logging and sampling of historical drill holes is to continue, with a 5,000 m drilling program planned on existing targets. Defiance is preparing additional drill permit applications that will test some of the targets that lie outside of the current drill permit.

ON MINING

  • Sierra Metals Inc. informed the Mexican government issued a communication stating “that the effective date for Mining to be deemed an essential service was June 1, 2020. The Company is currently recalling employees from the Bolivar Mine (Chihuahua) to begin a COVID-19 screening process, including a quarantine period, allowing the Company to be ready to commence mining activities on June 1, 2020. The Cusi Mine (Chihuahua), as previously discussed in the May 13, 2020 press release, remains in care and maintenance”.
  • Aura Minerals Inc. announced that the Company filed its interim financial statements for the first quarter of 2020 (Aranzazu, Zacatecas).
  • Impact Silver Corp. announced its financial and operational results for the first quarter of 2020. Silver production was 179 K Oz Ag, with mill feeds from the Guadalupe, San Ramon, Cuchara and Veta Negra mines. At the end of the period the company cash and working capital stood at $3.9 M and $3.4 M respectively. Mining is to resume on June 1st, 2020, following government directions (Zacualpan, Estado de Mexico).
  • Mexus Gold US. Resumed full operational production after the Coronavirus emergency slowdown at its Santa Elena mine in Sonora (not to be mistaken with First Majestic’s Santa Elena mine, also in Sonora).
  • Fortuna Silver Mines Inc. resumed production activities at its San José mine in Oaxaca.
  • Gold Resource Corp. received written government approval to restart its Oaxaca Mining Unit in Oaxaca. “After reviewing Gold Resource Corporation’s safety protocol documentation, the Instituto Mexicano del Seguro Social (IMMS) approved in writing the restart of the Company’s OMU operations on May 25, 2020”.
  • Endeavour Silver Corp. has restarted operations at its three underground mines in Mexico. “The Company filed its mine operating and health plans with, and received approvals from, the Secretariat of Health in Mexico to recommence mining operations”. Guanaceví in Durango, Bolanitos in Durango and El Compa in Zacatecas are ramping up activities to achieve normal operations.
  • Discovery Metals Corp. announced its operating and financial results for the first quarter 2020. By the end of the period Discovery had cash and cash equivalents of $20 M (Cordero, Chihuahua).
  • Minera Capela (Industrias Peñoles) reported a rock-fall that resulted in two deaths and three more casualties in Tehuixtla, Teloloapan, Guerrero.
  • GR Silver Mining Ltd. Informed that due to international logistics and delays caused by the COVID-19 pandemic, the Company is relying on the blanket relief granted by the securities regulatory authorities in Canada to postpone the filing of its Q1 2020 reports. (Plomosas, Sinaloa).
  • Aura Minerals Inc. expects it will be able to gradually and safely resume activities at Aranzazu, Zacatecas, over the next few weeks.

ON FINANCING

  • Canasil Resources Inc. granted 1.75 M incentive stock options to directors, officers, consultants and employees. David Terry has agreed to act as an advisor to Canasil’s board of directors (La Esperanza, Zacatecas).
  • Orex Minerals Inc. intends to undertake a private placement financing to raise gross proceeds of up to $2 M. “Orex intends to use the net proceeds of the Offering to maintain its 40% share of the Sandra-Escobar Project in good standing and fund its 40% share of the upcoming work program, and for general corporate and working capital purposes”.
  • Silver Tiger Metals Inc. (formerly Oceanus Resources) announced it is now trading on the OTCQB, a US interdealer quotation system. Silver Tiger’s common shares also trade on the TSX Venture Exchange under its trading symbol SLVR (El Tigre, Sonora).
  • VanGold Mining Corp. adopted a warrant acceleration bonus program for its outstanding share purchase warrants granted in connection with the company’s 2019 private placement financing (El Pinguico, Zacatecas).
  • Equinox Gold Corp. reports that from April 1 to May 25, 2020, warrants s held by various security holders have been exercised for net proceeds of approximately $145 M. “As at May 26, 2020, the Company’s cash balance is more than $480 million” (Los Filos, Guerrero).
  • Southern Silver Exploration Corp. announced that the TSX Venture Exchange has approved the extension of the expiry date of certain of the company’s outstanding common share purchase warrants for an additional two years, with the expiration date now from June 2022 to September 2022 (Cerro Las Minitas, Durango).
  • Ridgestone Mining Inc. common shares are now listed on the Frankfurt Stock Exchange, broadening the corporation’s shareholders base in Europe (Rebeico, Sonora).
  • Aztec Minerals Corp. has engaged “Commodity-TV and Rohstoff-TV for an initial three month period to assist with Aztec’s investor relations activities. Pursuant to an agreement dated May 20, 2020, Aztec will pay C&R-TV €9000 plus expenses. C&R-TV is based in Switzerland and will introduce Aztec to its European investor network” (Cerro Cervantes, Sonora).
  • Vizsla Resources Corp. entered into an agreement with Canaccord Genuity Corp. for a bought deal purchase of shares for C$4 M in gross profits (Panuco, Sinaloa).
  • DynaResources Inc. closed a financing agreement with Golden Post Rail, LLC. and with certain individual shareholders of DynaUSA. Golden Post acquired a convertible promissory note of $2.5 M, bearing interest at 10% and maturing two years from the execution date. The other purchaser acquired convertible security notes in the amount of $1.4 M, bearing interest at 10% and maturing two years from the date of issuance (San Jose de Gracia, Sinaloa).
  • Minaurum Gold Inc. closed its previously announced brokered private placement offering, for aggregate gross proceeds of $5 M (Alamos Silver, Sonora).
  • Telson Mining Corp. closed a second and final tranche of the non-brokered private placement announced on December 27, 2019, for gross proceeds of $196.6 K (Tahuehueto, Durango).
  • Golden Tag Resources Ltd. Announced a non-brokered private placement for gross proceeds of up to $1.12 M. “Subsequent to closing of the Financing, the Company will have cash balances of approximately $2.1 million, and no debt” (San Diego, Durango).
  • Solaris Resources Inc. completed a non-brokered private placement financing raising gross proceeds of C$20 M (La Verde, Michoacan).
  • Mammoth Resources Corp. announced a non brokered private placement for gross proceeds of up to $131 K (Tenoriba, Chihuahua).
  • Consolidated Zinc Ltd. announced that the fully underwritten pro-rata non-renounceable entitlements offer to raise $1.73 M on the basis on 1 new share for every 3 shares held at the record date has closed (Plomosas, Chihuahua).

ON RESOURCES AND DEVELOPMENT

  • Mexican Gold Mining Corp. announced the company will resume activities at Las Minas, Veracruz, in July of 2020, with the goal of having all the necessary inputs for a preliminary economic assessment (PEA) study completed by the end of the year. A 3,000 m drilling program has been designed to expand and upgrade the current resource at El Dorado and continue exploration at the Cinco Señores and Changarro areas. A comprehensive metallurgical study is to be elaborated, as well as an airborne LIDAR on 50 square Km to map the ground surface to 10 Cm resolution.
  • Golden Minerals Co. announced the filing on SEDAR of a preliminary Economic assessment (PEA) for its Rodeo property in Durango.
  • Bacanora Lithium PLC. updated on activities at its Sonora Lithium project in Sonora. The pilot plant in Hermosillo is to remain closed until authorities lift the Coronavirus pandemic restrictions. Completion of the flow sheet engineering will provide an engineering, procurement and construction style engineering proposal to produce downstream battery grade lithium products, is now scheduled for end of Q4, 2020. from Sonora.
  • Discovery Metals Corp. informed that to date the company has completed 17,500 m (48 holes) of its planned 30,000 to 35,000 phase 1 drill program, demonstrating near-surface higher-grade potential over a strike length of 1,250 m, intercepting multiple sulfide veins with grades over 1 kilogram silver per tonne at its Cordero project, Chihuahua.

ON DEALS AND CORPORATE ISSUES

  • Mithril Resources Ltd. has completed the acquisition of Sun Minerals Pty Ltd., which holds and exclusive option to acquire the high-grade Copalquin project in Durango. The company issued 673.85 M ordinary shares for the acquisition of all the issued capital of Sun Minerals. Mithril also issued 10 M ordinary shares and paid US$200 K to Compañía Minera Copalquin, S.A. de C.V., and issued 225 M performance rights.
  • Candente Gold Corp. informed the memorandum of understanding (MOU) the company signed with Magellan Acquisition Corp. giving Candente the right to earn up to a 100% interest in both the SDA plant and the El Dorado property, in Nayarit, has been amended such that a payment of US$5 K is being paid upon signing the revised MOU and the payment of shares upon completion of due diligence and a definitive agreement to earn 10% interest has been increased from 4 M shares to 5 M shares, all other terms remain the same. The MOU is subject to TSX Venture approval as well as due diligence and execution of a definitive agreement.
  • Sonoro Metals Corp. has published a revised version of its Cerro Caliche project development report dated May 22, 2020. As a result of a review by the British Columbia Securities Commission, Sonoro withdrew an April 28, 2020 version of this project development report as it contained certain technical disclosures that did not comply with National Instrument 43-101 standards of disclosure for mineral projects. The revised report is not a technical report as defined by NI 43-101 and has been updated to address those disclosure issues and is now available on the Cerro Caliche project page of the Company’s website.

ON SOCIAL RESPONSIBILITY

  • Minera Peña Colorada donated 1000 sets of groceries to aid the most needed families in Cuatitlán de García Barragán, Jalisco.
  • Grupo Mexico donated 23 respiratory ventilators to the State of Sonora, to be distributed mainly in the capital hospitals.
  • Fresnillo PLC donated personal medical protection equipment in Caborca, Sonora.
  • Minera Real Bonanza supports the fight against the Covid-19 menace through the Hacienda Santa Ana museum in Real de Catorce, San Luis Potosi.
  • Grupo Mexico Foundation and Fechac delivered health protection kits to hospitals in Ciudad Juárez, Chihuahua.
  • Fresnillo PLC donated a respiratory ventilator to health authorities in Durango.
  • Fresnillo PLC donated medical protection equipment to a hospital in Fresnillo, Zacatecas.
  • The mining industry in Sonora has contributed with sanitizing kits, grocery kits, medical protection sets, hospital equipment, office equipment and public spaces sanitizing. These have benefited 125,813 people with an investment of $64.6 M pesos during April and May 2020, in communities like Cananea, Caborca, La Colorada, Nacozari, Cumpas, Fronteras, Magdalena, San Javier and Esqueda.

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

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KOOTENAY INTERCEPTS HIGH SILVER GRADES 2,010 GPT OVER 1 METER WITHIN 762 GPT OVER 2.8 METERS & 865 GPT OVER 2 METERS WITHIN 317 GPT OVER 6 METERS – DEFINES NEW HANG WALL STRUCTURE AT COLUMBA PROJECT, MEXICO

2020-05-26-NR-KTN-WTuPjm6m6HsVVe

Kootenay Silver Inc. (TSXV: KTN) (the “Company” or “Kootenay”) is pleased to announce assay results from an additional four holes at the Columba high-grade silver project (the “Property”), located in Chihuahua State, Mexico.  These holes are the remaining 4 of 10 holes completed from the 2020 drill program (the “Program”) before the COVID-19 work stoppage.

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

Phyllic alteration

By Miguel A Heredia

During the twenty one week of the year (May 18th to May 24th, 2020), at least 36 press releases were announced by companies working in Mexico, with twelve commenting on Mexican issues, six disclosing deals and corporate issues, five discussing on social issues, four informing on exploration results, three communicating production and financial results, three announcing financing rounds, and three reporting on resources and developments.  ON MEXICO ISSUES, Foreign Direct Investment (FDI) in the Mexican mining sector decreased last year according to government data.  Mexico deemed mining an essential activity, allowing companies to resume production activities. The Undersecretary of Mining, Francisco Quiroga, agreed with the Union Labour leaders on the strategy to guarantee a safe return to the mining operations in the country.  A protocol for reopening companies was defined and only the Mexican Institute of Social Security (IMSS) can approve it or rejected it. Mining companies with operations in Chihuahua signed a letter of commitment before the State Government and the Government of Mexico, to follow the instructions on health and safety at work during the phase of resumption of operations in the so-called “new normality”. Excellon Resources and the FRENTE Metallurgical Mining Union reached some agreements to continue operating the La Platosa mine in Durango. Industrias Peñoles announced the shutdown of its Francisco I Madero Zinc mine in Zacatecas due to difficult mining conditions and low metal prices. ON EXPLORATION, In Sonora, Tocvan and its partner Colibri announced exciting new targets on its Pilar project. In Chihuahua, Kootenay released drill results from the first six of ten holes completed to date at its Columba project. In Sinaloa, Vizsla restarted its exploration and drilling program at its Panuco project.  ON MINING, Mag Silver reported Q1, 2020 financial results (Juanicipio project, Zacatecas). Mexus reported additional gold sales from production at its Santa Elena mine in Sonora. McEwen reported full year 2019 production results from its El Gallo mine in Sinaloa. ON FINANCING, Magna Gold announced a non-brokered private placement to raise gross proceeds of up to $7M (Mercedes project, Son).  Discovery Metals announced that it intends to complete a non-brokered private placement for gross proceeds of up to CAD $25M (Cordero project, Chihuahua).  Mithril announced that its rights issue for capital raising has closed with strong support for both shareholder entitlements and additional shortfall shares (Copalquin project, Durango).      ON RESOURCES AND DEVELOPMENT, Endeavour reported drill results from fourteen holes collared at its Bolaños mine in Guanajuato, eight of which intersected high-grade mineralization in the Melladito Vein. Mag Silver provided an update on its Juanicipio project in Zacatecas. VanGold announced plans to conduct a 1,000 tonnes bulk sample from its Pinguino project in Guanajuato. ON DEALS AND CORPORATE ISSUES, Alamos Gold reported results of its annual general meeting of shareholders (Mulatos mine, Sonora). Argonaut shareholders and Alio securityholders approved merger to create North American diversified Intermediate gold producer (El Castillo mine, Durango). Equinox announced results of its annual general meeting of shareholders (Los Filos mine, Guerrero). Defiance extended its option agreement on its San Acacio project in Zacatecas to 2023. Silver Tiger (former Oceanus Resources) commenced trading under the symbol “SLVR” (El Tigre project, Sonora). Sierra Metals appointed its new CEO (Bolivar mine, Chihuahua). ON SOCIAL RESPONSIBILITY, The Grupo Mexico Foundation donated 5,000 molecular tests for COVID-19, and will be distributing 450,000 protection kits in Mexico City as well as in the states of Mexico, Jalisco and Nuevo Leon. Minera Gorrión, subsidiary of Almaden Minerals and in charge of developing the Ixtaca mine project, in the north of Puebla, donated 1,000 disinfecting gels and 2,000 masks to the Ixtacamaxtitlán Community Hospital, in charge of leading efforts against the epidemic in the region. Minera Media Luna (Torex Gold), will donate MXP $2M to launch a hospital in Iguala, Guerrero, which will exclusively treat patients with COVID-19. Consorcio Minero Peña Colorada S.A. de C.V. , donated MXP $500K to the Integral Development of the Family (DIF)  of Colima State to allocate it to the Emergent Food Attention Program implemented by the government.

ON MEXICO ISSUES

  • Foreign Direct Investment (FDI) in the Mexican mining sector, decreased last year, according to government data. Net FDI in 2019 was USD $592M, down from almost USD $ 650M in 2018, according to data published by the economy ministry. The 2019 figure is the lowest compared to previous years. Spending peaked at USD $ 5.44B in 2013. The industry leaders see a general decline in investment in 2020 due to the COVID-19 pandemic. Mining companies intend to restart operations in June 1, 2020, as part of a gradual reopening of the economy under which the sector has acquired essential status.
  • Mexico, deemed mining an essential activity, allowing companies to resume production activities, six weeks after asking all non-essential business to temporarily close in response to the COVId-19 pandemic. Argonaut, Azure, Compañía Real del Monte, Premier, Newmont, Alamos Gold, Great panther, among others, are some of the mining companies which will be starting activities at its mine operations.
  • The Undersecretary of Mining, Francisco Quiroga, agreed with the Union Labour leaders on the strategy to guarantee a safe return to the mining operations in the country, once the reactivation of this sector was allowed. The mining sector generates 370K direct jobs and 2.3M of indirect jobs throughout the country, which generates benefits for workers and employees. Mining represents an essential sector because it supplies raw materials to practically all industries. On the other hand, Francisco Quiroga has been very active working with mining companies to define, along with the Secretary of Health, Jorge Alcocer Varela, the protocols for a safe reopening in 249 mining municipalities.
  • A protocol for reopening companies was defined by the authorities. Companies must have the authorization of the Mexican Institute of Social Security (IMSS) to restart activities, after remain closed due to the CIVID-19. According to the Technical Guidelines for Health Safety in the Workplace, published this Monday by the Ministry of the Economy (SE), the IMSS will have 72 hours to approve or reject the request.
  • Mining companies with operations in Chihuahua, signed a letter of commitment before the State Government (Governor Javier Corral) and the Government of Mexico (Undersecretary of Mining Francisco Quiroga), to follow the instructions on health and safety at work during the phase of resumption of operations in the so-called “new normality”. Francisco Quiroga added that to close the circle of prevention, the mining industry will be trained in the management of the different equipment that will be put into operation to comply with the protocols set by the State Health Council.
  • Excellon Resources Inc., and the FRENTE Metallurgical Mining Union, reached some agreements to continue operating the La Platosa mine in the Bermejillo community, located in the Mapimí municipality, Durango. It highlights a cut of around 20% in personnel and a technical strike for the next 60 days as the company develops the restructuring process. The official assured that the liquidations of the personnel who will be dismissed will be 100% and in accordance with the provisions of the law, in addition to reaching an agreement with the union so that, while the technical strike is carried out, only 50% of their salary will be paid to the rest of the workers who, due to the pandemic caused by the COVID-19, are in domiciliary protection.
  • Industrias Peñoles S.A.B. de C.V., announced the shutdown of its Francisco I Madero Zinc mine in Zacatecas, due to difficult mining conditions and low metal prices. It stated that it has begun laying off unionized workers in the mine unit and also trying to reassign to others workers and contractors to other mine units. The Francisco I Madero mine started operations in 2001. Peñoles processed in 2019, over 2.3M tonnes to produce 93M Lb Zn and 19.9M Lb Pb.

ON EXPLORATION

  • Tocvan Ventures Corp, and its partner Colibri Resources Corporation, announced new exciting targets generated by an IP survey on its Pilar project in Sonora. “According to the survey data, the Main Zone and the North Hill Zone may be connected and, if confirmed, would be renamed as a mineralization trend. Results also indicate the potential of the northeast-southwest structures connecting the 4-Trench Zone to the Main Zone, Tocvan said”. Geophysical results will be combined with additional surveys to better define drill targets for a phase 2 drilling campaign.
  • Kootenay Silver Inc., released drill results from six of ten holes completed to date at its Columba project in Chihuahua, as part of its 2020 drilling program. Significant drill intersections were encountered in hole CDH-20-045 with 239 g/t Ag, 0.08% Pb, and 0.4% Zn over 4.3m, including 350 g/t Ag, 0.1% Pb, and 0.5% Zn over 2.5m, and including 456 g/t Ag, 0.2% Pb and 0.6% Zn over 1.5m in the F Vein, and 208 g/t Ag, 0.1% Pb, and 0.2% Zn over 3m, including 974 g/t Ag, 0.03% Pb, and 0.3% Zn over 0.5m in a footwall vein; hole CDH-20-046 with 264 g/t Ag, 0.06% Pb, and 0.1%Zn over 6.8m, including 553 g/t Ag, 0.1% Pb, and 0.2% Zn over 2.9m, including 911 g/t Ag, 0.2% Pb, and 0.2% Zn over 1.4m, including 1,585 g/t Ag, 0.3% Pb, and 0.3% Zn over 0.6m, and 689 g/t Ag, 0.2% Pb, and 0.3% Zn over 0.5m, and 219 g/t Ag, 0.04% Pb, and 0.1% Zn over 5m, all in the F Vein; hole CDH-20-047 with 166 g/t Ag, 0.2% Pb, and 0.5% Zn over 15.65m, including 351 g/t Ag, 0.4% Pb, and 1% Zn over 5.97m, including 400 g/t Ag, 0.45% Pb, and 1.2% Zn over 4.97m, including 782 g/t Ag, 1.1% Pb, 3.6% Zn over 1.05, including 305 g/t Ag, 0.1% Pb, and 0.3% Zn over 1.15m, including 219 g/t Ag, 0.4% Pb, and 0.7% Zn over 1.1m, including 432 g/t Ag, 0.5% Pb, and 1% Zn over 0.97m; and hole CDH-20-042 with 115 g/t Ag over 0.3m in a hangingwall of a quartz vein, and 86 g/t Ag 0.02% Pb, and 0.1% Zn over 13m, including 111 g/t Ag, 0.03% Pb, and 0.1% Zn over 5.9m, in the F Vein. These holes tested the F Vein structure along 400 meters of strike length with holes 42 to 45 focusing on gaps in the 2019 drill program, while holes 46 and 47 were step outs along strike.
  • Vizsla Resources Corp., restarted its exploration and recommenced its 14,500m drilling programs at its Panuco project in Sinaloa. Vizsla has tested only five of the initially twenty targets and will continue with two drill rigs to ensure the remaining 10,861m of planned drilling is completed in the 2020 calendar year.

ON MINING

  • Mag Silver Corp., reported Q1, 2020 financial results. It estimated the pre-operative initial capital now at USD $440M as of January, 2018. The company also reported a development expenditure of approximately USD $153.5M (company therefore estimates approximately $286,584 of remaining initial capital on a 100% basis as at March 31, 2020), and an existing cash and other working capital as at March 31, 2020 of USD $6.8M and USD $13.2M respectively (Juanicipio project, Zacatecas).
  • Mexus Gold , reported addition gold sales from production at its Santa Elena mine in Sonora. It sold 47.5Oz Au on May 7th and was processing an additional 45 Oz Au the week of May 18th. Mexus announced that the sales of gold for the month of May are expected to exceed 120 Oz Au.
  • McEwen Mining Inc., reported full year 2019 production results from its El Gallo mine in Sinaloa. It produced 2,700 Oz AuEq (GEO) from residual leaching of the heap leach pad. Beginning with Q42019, the company has ceased relying on, and disclosing, cash costs and AISC per GEO as key metrics for El Gallo mine. Residual leaching will continue for as long as incremental revenue exceeds incremental costs.

ON FINANCING

  • Magna Gold Corp., announced a non-brokered private placement to raise gross proceeds of up to $7M. Net proceeds will be used for working capital purposes in connection with the company´s existing projects (Mercedes project, Sonora).
  • Discovery Metals Corp., announced that it intends to close a non-brokered private placement for gross proceeds of up to CAD $25M. Net proceeds will be used primarily to continue the exploration programs at its Cordero and Coahuila projects in Chihuahua and Coahuila respectively.
  • Mithril Resources Limited, announced that its rights issue for capital raising has closed with strong support for both shareholder entitlements and additional shortfall shares. The company was required to raise a minimum of $1.5M under the rights issue as a condition precedent of the transaction with Sun Minerals Pty Ltd. Fund raised will be used to advance exploration at its Copalquin project in Durango, following completion of the acquisition of Sun Minerals.

ON RESOURCES AND DEVELOPMENT

  • Endeavour Silver Corp., reported drill results from fourteen holes collared at its Bolaños mine in Guanajuato, eight of which intersected high-grade mineralization over minable widths in the Melladito Vein. Significant drill intersections were encountered in hole BN27 with 24.3 g/t Au and 787 g/t Ag (3,217 g/t AgEq) over a true width (TW) of 1.5m, including 91.8 g/t Au and 2,200 g/t Ag (11,380 g/t AgEq) over a true width of 0.20m; hole BN31 with 12.48 g/t Au and 50 g/t Ag (1,298 g/t AgEq) over a TW of 1.1m, including 50.8 g/t Au and 191 g/t Ag (5,271 g/t AgEq) over a TW of 0.2m; and hole BN32 with 7.37 g/t Au and 170 g/t Ag (907 g/t AgEq) over a TW of 2.7m, including 9.47 g/t Au and 327 g/t Ag (1,274 g/t AgEq) over a TW of 0.6m.”The eight drill holes outline a new mineralized zone 100 m long by 200 m deep, open in all directions. It could connect with the historic high-grade San Ramon mine workings immediately west of and the San Pablo mine workings immediately east of the drill holes. This part of the Melladito vein was not previously explored and represents an exciting new area for resource estimation and mine development”.
  • Mag Silver Corp., provided an update on its Juanicipio project in Zacatecas. Highlights include that a detailed engineering is near completion and earthmoving and foundation preparation is well advanced for the construction of the 4,000 tpd beneficiation plant; SAG and Ball mills, flotation cells, all associated vessels, thickeners and ancillary process equipment are now secured on site, progress made with the construction of the flotation plant and infrastructure, and underground development at Juanicipio has now approached 27 km (or 16.9 miles) and is focused on three sub-vertical ramps that descend alongside the mineralization and alongside the conveyor ramp to surface at plant site.
  • VanGold Mining Corp., announced plans to conduct a 1,000 tonnes bulk sample from its Pinguino project in Guanajuato. It entered in an agreement with Endeavour Silver and will be sending the bulk sample to Endeavour’s Bolañitos mill, located approximately 28kmfrom El Pinguico project. “By conducting this large test, the Company will gain valuable metallurgical and precious metal recovery information pertaining to the mineralized material on the El Pinguico property.

ON DEALS AND CORPORATE ISSUES

  • Alamos Gold Inc., announced results of its annual general meeting of shareholders. It also appointed and compensated executives and auditor´s remuneration (Mulatos mine, Sonora).
  • Argonaut Gold Inc., shareholders and Alio Gold Inc. securityholders, approved merger to create North American diversified intermediate gold producer. On closing of the transaction, Argonaut and Alio shareholders will own approximately 76% and 24% of the merged company, respectively, on an issued share basis. The merged company will continue as Argonaut Gold with the ticker symbol AR on the Toronto Stock Exchange (TSX). (El Castillo mine, Durango).
  • Equinox Gold Corp., announced results of its annual general meeting of shareholders. It also appointed auditors and approved executive´s compensation (Los Filos mine, Guerrero).
  • Defiance Silver Corp., announced that it has successfully negotiated with the project vendor its option agreement on its san Acacio project in Zacatecas. The project vendor has agreed to extend the option agreement terms by three years from September 27, 2020 to September, 27, 2023. “Defiance will now be making quarterly payments, over three years, to the property vendor totaling USD $2,278,189, with the final option payment of USD $2,407,461 due September 27, 2023. In accordance with the original agreement, the vendor retains a 2.5% NSR which may be purchased for USD $2,500,000. Should the agreement be terminated prior to September 27, 2023 a break fee equal to 5% of the outstanding option balance shall be paid to the property vendor”.
  • Silver Tiger Metals Inc., (former Oceanus Resources), commenced trading under the trading symbols “SLVR” on the TSXV. There was no change in the share capital of the company. Certificates representing common shares of the company will not be affected by the name and symbol change and will not need to be exchanged (El Tigre project, Sonora).
  • Sierra Metals Inc., announced the appointment of its new CEO effective immediately (Bolivar mine, Chihuahua).

ON SOCIAL RESPONSIBILITY

  • The Grupo Mexico Foundation, donated 5,000 molecular test for the detection of COVID-19 to be applied to patients from all over the state of Chihuahua. Governor of Chihuahua State, Javier Corral, stated that it will allow reducing the time of diagnosis and extending timely attention to the population. In addition, it also will donate 450,000 protection kits to be distributed in Mexico City as well as in the states of Mexico, Jalisco and Nuevo Leon. The kits are personal and contain supplies such as masks, gowns, hats, shoe covers, KN45 masks, gloves, goggles and everything necessary to promote the comprehensive protection of health personnel in hospitals.
  • Minera Gorrión (MG), subsidiary of Almaden Minerals Ltd., and in charge of developing the Ixtaca mine project, in the north of Puebla, donated 1,000 disinfecting gels and 2,000 masks to the Ixtacamaxtitlán Community Hospital, in charge of leading efforts against the epidemic in the region. On the other hand, 1,440 liters of gel and 4,800 face masks were distributed among 15 Rural Medical Units of the IMSS and 9 Health Houses of the Ministry of Health in the municipality. Likewise, MG delivered 1,300 liters of gel and 2,000 covers mouths to the Central Warehouse of Health Services in the state of Puebla to support the efforts led by the Puebla government to counteract the spread of the disease in the state.
  • Minera Media Luna (Torex Gold Resources Inc.), donated MXP $2M to launch a hospital in Iguala, Guerrero, which will exclusively treat patients with COVID-19. The hospital will be soon in operation and will also serve people from Taxco, Huitzuco, Tepecoacuilco and Cocula affected by the coronavirus.
  • Consorcio Minero Peña Colorada S.A. de C.V., donated MXP $500K to the Integral Development of the Family (DIF) of Colima State, to allocate it to the Emergent Food Attention Program, implemented by its government.

 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, phyllic alteration in a porphyry Cu system in a prospect in Oaxaca, Mexico.  Photo by Miguel A Heredia.

 

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

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By Jorge Cirett

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

ON MEXICO ISSUES

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

ON EXPLORATION

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

ON MINING

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

ON FINANCING

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

ON RESOURCES AND DEVELOPMENT

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

ON DEALS AND CORPORATE ISSUES

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

ON SOCIAL RESPONSIBILITY

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

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

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

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