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The Mining and Exploration News in Mexico: Highlights on the Third Week of March, 2024

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Mn-Fe veinlets hosted in rhyolites

By Miguel A Heredia

During the 12th week of the year (March 18th to March 24th, 2024), at least 18 press releases were announced by companies working in Mexico, with seven communicating production results, four disclosing deals and corporate issues, four announcing financing issues, two reporting resources and developments of their projects, and one commenting on Mexican issues.  ON MEXICO ISSUES, Vizsla reported the best drilling intercepts in Mexico on the third week of March, 2024. ON EXPLORATION, no relevant news. ON MINING, Sierra Metals reported Q43 and year-end 2023 production results from its Bolivar mine in Chihuahua, and provided production and cost guidance for 2024. Starcore reported Q3 results ended January 31, 2024 from its San Martin mine in Queretaro. Avino reported Q4 and full year 2023 production and financial results (Avino mine, Durango). Golden Minerals released consolidated financial results from Rodeo and Velardeña mines, both located in Durango State. Orla reported Q4 and full year 2023 production and financial results from its Camino Rojo mine in Zacatecas. Orogen announced preliminary 2023 full year financial results. MAG Silver reported 2023 annual production and financial results from its Juanicipio mine in Zacatecas.  ON FINANCING, Bear Creek Mining has drawn down USD $750K for a total principal amount of USD $19,767,612.35 outstanding under the Sandstorm Promissory Note (Mercedes mine, Sonora). Americas Gold and Silver firstly announced a private placement for gross proceeds of CAD $6.5M and later increased it to CAD $7.5M (Cosala mine, Sinaloa). Sailfish declared Q1, 2024 dividend. ON RESOURCES AND DEVELOPMENT, Tocvan reported that it is advancing a significant gold-silver land package in Sonora, Mexico (Pilar project). Vizsla released results from 27 new infill and expansion drill holes targeting the Copala resource area at its flagship Panuco project, Sinaloa. ON DEALS AND CORPORATE ISSUES, Bear Creek granted 500K stock options to its CFO, exercisable at CAD $0.245 per share (Mercedes mine, Sonora). Atacama Copper retained Cascade Corporate Consulting for investor relations services (Las Cristinas project, Chihuahua). Colibri announced that it will retain 49% interest in Pilar project in Sonora and will enter into a JV.  Sailfish announced termination of share purchase option agreement with CMC.  ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUE

  • Vizsla Silver Inc., reported the best drilling intercepts in Mexico on the third week of March, 2024. Details are shown in the table below:

ON EXPLORATION

  • No relevant news.

ON MINING

  • Sierra Metals Inc., reported Q43 and year-end 2023 production results from its Bolivar mine in Chihuahua and provided production and cost guidance for 2024 (All currency amounts are expressed in US dollars). In Q4, 2023, the company processed 409,995 tonnes to produce 9,150,000 Lb CuEq at cash and all in sustaining costs of $1.90 and $3.47 per Lb CuEq payable respectively. Sierra Metals reported cost of sales of $23,243,000 and a total cash cost of $19,035,000. In the full year 2023, the company processed 1,477,889 tonnes to produce 34,579,000 Lb CuEq at cash and all in sustaining costs (AISC) of $1.87 and $3.29 per Lb CuEq payable respectively. Sierra Metals reported cost of sales of $82,188,000 and a total cash cost of $66,381,000. Sierra Metal provided production and cost guidance for 2024. It estimated to produce between 23,900,000-27,600,000 Lb CuEq, 650K-750K Oz Ag, and 8000-9,200 Oz Au at cash and AISC of $2.56-$272 and $3.28-$3.36 per Lb Cu Eq respectively.
  • Starcore International Mines Ltd., reported Q3 results ended January 31, 2024 from its San Martin mine in Queretaro. The company processed 52,700 tonnes of 1.58 g/t Au and 15 g/t Ag with metallurgical recoveries of 89.1% and 50.3% respectively to produce 2.4K Oz Au and 12.4K Oz Ag (2.5K Oz AuEq) at mine operating cash and AISC of USD $1,674 and USD $2,156 per Oz AuEq respectively. Starcore reported revenue of CAD $6,784,000 and earnings of CAD $795,000.
  • Avino Silver & Gold Mines Ltd., reported Q4 and full year 2023 production and financial results from its Avino mine in Durango (all currency amounts are expressed in US dollars). In Q4, 2023 the company milled 143,738 tonnes to produce 224.7K Oz Ag, 1,452 Oz Au, and 1.32M Lb Cu (558.5K Oz AgEq) at cash and AISC of $15.04 and $21.67 per Oz AgEq payable respectively. Avino sold 548K Oz AgEq in this period. It also reported revenue of $12.53M; mine operating income of $2.6M; net income of $0.6M, EBITDA of $1.1M, and adjusted earnings of $2M. In the full year 2023, the company milled 615,373 tonnes to produce 928.6K Oz Ag, 7,335 Oz Au, and 5.3M Lb Cu (2.4M Oz AgEq) at cash and AISC of $15.61 and $21.87 per Oz AgEq payable respectively. Avino sold 2.1M Oz AgEq in this period. It also reported revenue of $43.9M; mine operating income of $7.8M; net income of $0.5M, EBITDA of $2.5M, and adjusted earnings of $4.6M.
  • Golden Minerals Company released consolidated financial results from Rodeo and Velardeña mines, both located in Durango State (all figures are expressed in US dollars). The company reported revenue of $12M; cost of metals sold of $12.4M; other operating income of $2.3M; net loss of $9.2M or $1.08 per share; cash and equivalents balance of $3.8M; debts was zero; cash inflows of $9.7M; and total expenditures of $9.9M. Rodeo mine concluded operations in June 2023 and finished processing stockpiled material in September 2023, while Velardeña began mining activities in December 2023 given newer favorable concentrate terms, positive results of testing activities and of recent metallurgical and economic analyses, but operations were subsequently shut down in late February 2024 after the initial performance of the mine and processing plant did not achieve expected results.
  • Orla Mining Ltd., reported Q4 and full year 2023 production and financial results from its Camino Rojo mine in Zacatecas (all amounts expressed in US dollars). In the period Q4, 2023, the company produced 34,484 Oz Au and sold 31,300 Oz Au at cash and AISC per Oz Au of $536 and $802 respectively, and at an average realized Au price of $1,974 per Oz Au. It also reported revenue of $629M; net income of ($58.4M); adjusted earnings of $15.7M; adjusted earnings per share of $0.05; cash flow from operating activities of $24.7M; free cash flow of ($8.2M); cash and cash equivalents of $96.6M; and net cash (debts) of $8.3M. In the full year 2023, the company produced 121,877 Oz Au and sold 118,993 Oz Au at cash and AISC per Oz Au of $506 and $736 respectively, and at an average realized Au price of $1,941 per Oz Au. It also reported revenue of $233.6; net income of ($27M); adjusted earnings of $47.8M; adjusted earnings per share of ($0.09); cash flow from operating activities of $68.9M; free cash flow of $23.6M; cash and cash equivalents of $96.3M; and net cash (debts) of ($49.5M).
  • Orogen Royalties Inc., announced preliminary Q4 and 2023 full year financial results (all figures are in Canadian dollars). The Company’s royalty portfolio includes the Ermitaño gold and silver Mine in Sonora, Mexico (2.0% NSR royalty) operated by First Majestic Silver Corp.  For the period Q4, 2023, Orogen reported royalty revenue of $1.8M and for the full year 2023 of $5.9M. According to First Majestic, forecasted production guidance from the Santa Elena mine complex in 2024 is 81,000 to 90,000 ounces gold and 1.1 to 1.2 million ounces silver, with over 90% of the production from the Ermitaño mine. The Company estimates that this will result in royalty revenues between $4.5M and $5.0M based on gold price of USD $2,000 per Oz.  
  • MAG Silver Corp., reported 2023 annual production and financial results on a 100% basis from its Juanicipio mine in Zacatecas (44% MAG/56% Fresnillo plc) (all amounts are reported in $000´s of US dollars). The company mined 1,097,289 tonnes and processed 1,268,757 tonnes of 472 g/t Ag, 1.27 g/t Au, 1.1% Pb, and 2% Zn to produce 15.3M Oz Ag, 31.73K Oz Au, 25.9M Lb Pb, and 36.9M Lb >Zn at cash and AISC of $6.07 and $10.32 per Oz Ag sold respectively. The company also reported  a net income of $48,659 ($0.47 per share) (equity accounted) of $65,099; and adjusted EBITDA of $97,480; operating cash flow and free cash flow of $145,064 and $60,814 respectively; cash balances of $42,913; and Interest and loan principal repayments returned to MAG during 2023 totalled $33,354.

ON FINANCING

  • Bear Creek Mining Corporation has drawn down USD $750K for a total principal amount of USD $19,767,612.35 outstanding under the Sandstorm Promissory Note. Sandstorm has provided additional credit of up to USD $375K per month until August 2024, with the option to convert the drawn amounts in common shares, and will be used for continuing exploration work at its Mercedes mine in Sonora and general working capital purposes.
  • Americas Gold and Silver Corporation announced a private placement of up to 21,667,000 units of the company at a price of CAD $0.30 per unit for gross proceeds of CAD $6.5M, and later on it increased to 25,000,000 units of the company at a price of CAD $0.30 per unit for gross proceeds of CAD $7.5M. Each unit will be comprised of one common share of the company and one common share purchase warrant of the company. Part of the gross proceeds will be used for working capital requirements at its Cosala mine, Sinaloa, and for general and administrative purposes.
  • Sailfish Royalty Corp., declared Q1, 2024 dividend and announced termination of share purchase option agreement with CMC. Its Board of Directors has declared the Company’s first quarterly cash dividend for 2024 in the amount of USD $0.0125 per common share that will be payable on April 15, 2024 to Sailfish shareholders of record as of the close of business on March 31, 2024.

ON RESOURCES AND DEVELOPMENT

  • Tocvan Ventures Corp., reported that it is advancing a significant gold-silver land package in Sonora, Mexico, particularly focusing on the Pilar Project spanning over 22 square kilometers. With extensive drilling and exploration efforts, the company aims to transition towards production by developing mine permits, conducting an extensive drill program, and evaluating new target areas. Positioned in a mining-friendly jurisdiction with quality assets and surrounded by operational mines, Tocvan is poised to become a key player in the region’s mining sector.
  • Vizsla Silver Corp., released results from 27 new infill and expansion drill holes targeting the Copala resource area at its flagship Panuco project, Sinaloa. Drilling highlights (true widths reported) include holes CS-24-342 with 487 g/t Ag and 3.69 g/t Au (703 g/t AgEq) over 6m, plus 252 g/t Ag and 1.25 g/t Au (317 g/t AgEq) over 0.95m, plus 304 g/t Ag and 1.01 g/t Au (347 g/t AgEq) over 0.55m, and plus 1,435 g/t Ag and 3.83 g/t Au (1,576 g/t AgEq) over 0.6m; hole COP-2023-001 with 240 g/t Ag and 1.61 g/t Au (332 g/t AgEq) over 13.6m, including 1,075 g/t Ag and 11.55 g/t Au (1,793 g/t AgEq) over 1.1m, plus 508 g/t Ag and 1.19 g/t Au (547 g/t AgEq) over 0.80m; hole COP-2023-004 with 318 g/t Ag and 5.23 g/t Au (658 g/t AgEq) over 5.1m, including 338 g/t Ag and 16 g/t Au (1,436 g/t AgEq) over 0.28m, including 1,270 g/t Ag and 13.45 g/t Au (0.96 g/t AgEq) over 0.96m; and hole CS-24-339 with 738 g/t Ag and 2.28 g/t Au (832 g/t AgEq) over 2.92m, plus 267 g/t Ag and 0.87 g/t Au (304 g/t AgEq) over 0.8m. “The reported drilling, designed to both infill and expand mineralization, successfully confirmed high-grade continuity throughout Copala and extended mineralization by ~100m down dip to the southeast”.

ON DEALS AND CORPORATE ISSUES

  • Bear Creek Mining Corporation granted 500K stock options to its CFO, exercisable at CAD $0.245 per share, exercisable on or before March 19, 2034 (Mercedes mine, Sonora).
  • Atacama Copper Corporation retained Cascade Corporate Consulting Ltd for investor relations services to aid the company in building awareness in the financial community by maintaining relationships between the management of the company and investors (Las Cristinas project, Chihuahua).
  • Colibri Resource Corporation announced that it will retain 49% interest in Pilar project in Sonora and will enter into a JV on a 51% Tocvan / 49% Colibri basis to advance the project.
  • Sailfish Royalty Corp., announced the termination of the share purchase option agreement between the Company and CMC Metals Ltd pursuant to which the Company granted CMC the option to acquire all of the issued and outstanding shares of Swordfish Silver Corp. which, through Sailfish de Mexico S.A. de C.V., holds the mineral rights in and to the silver exploration project located in the Municipality of San Dimas, State of Durango, Mexico, known as the Gavilanes property. CMC has purported to unilaterally terminate the Agreement. The Company has accepted the termination and has engaged experienced litigation counsel in British Columbia to review this matter and seek all available remedies including damages

ON SOCIAL RESPONSIBILITY

  • No relevant news.

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

On the picture above, Mn-Fe veinlets hosted in rhyolites in an intermediate sulphidation epithermal vein system in a project in Chihuahua, Mexico. Photo taken by Miguel A Heredia.