Lithium

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

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Mn-Fe/calcite fault-bx in rhyolitic tuffs.

By Miguel A Heredia

During the first week of the year (December 31st to January 05th, 2020), at least 19 press releases were announced by companies working in Mexico, with six announcing financial rounds, three disclosing deals and corporate issues, three commenting on Mexican issues, two communicating production results, two reporting on resources and development of their projects, two discussing issues on social responsibility, and one informing on exploration results.  ON MEXICO ISSUES, La Caridad mine in Sonora, one of the most precious jewels of the Mexican mining. Lithium can turn Mexico into the planet´s rechargeable battery. Mexico announced USD $4.65B in capital expenditure for new mining projects in 2020-2021.  ON EXPLORATION, In Jalisco, GoGold filed a NI 43-101 Technical Report on its Los Ricos project. ON MINING, Telson reported some of the reactivation activities carried out at its Campo Morado mine in Guerrero to bring it back into production by mid January 2020. Newmont Goldcorp provided an outlook for the year 2020 on its Peñasquito mine in Zacatecas. ON FINANCING, Sonoro Metals received proceeds of $875K from the sale to Agnico of the 1% NSR on the Chipriona property in Sonora. First Mexican closed the third tranche of its private placement for gross proceeds of $95K (Guadalupe project, Sonora).  Great Panther announced USD $10M concentrate prepayment (Guanajuato mine complex, Guanajuato). Telson announced its intention to conduct a non-brokered private placement for gross proceeds of up to CAD $3M (Campo Morado mine, Guerrero). SilverCrest announced that SSR mining elected to exercise its SilverCrest equity participation with CAD $13.25M private placement (Las Chispas project, Sonora).  ON RESOURCES AND DEVELOPMENT, Sierra Metals updated mineral resource estimate for its Bolivar mine in Chihuahua.  Leagold announced expansion plans for its Los Filos mine in Guerrero. ON DEALS AND CORPORATE ISSUES, Prospero sold its Mexican subsidiary Minera Fumarola S.A. de C.V. to an arm’s length purchaser, Aquatio S.A. de C.V. of Jalisco State, Mexico (Pachuca SE project, Hidalgo). Equinox Gold and Leagold mailed management information in order to approve business combination and create a premier Americas Au producer (Los Filos mine, Guerrero). Goldgroup provided a legal update on its dispute with DynaResources concerning the San Jose de Gracia mine in Sinaloa. ON SOCIAL RESPONSIBILITY, Fresnillo plc created more than 9,000 jobs in 2019. Zacatecas students created a protective device for miners to reduce accidents.

ON MEXICO ISSUES

  • La Caridad mine in Sonora, owned by the Grupo Mexico, is one of the most precious jewels of the Mexican mining. Its activity dates back to the pre-Hispanic era, but which had its greatest boom in the early twentieth century and that today is recognized in the history of our country as a factor of advancement and economic development for all Mexicans. Today it is the best integrated mine in the world, a mine where Cu is split and extracted for plate refinement. But this is not the only thing that is exploited in La Caridad, because large quantities of refined Au and Ag are also obtained, as well as Moly, a metal highly prized for its ability to create alloys with steel. But beyond its metallurgical production, La Caridad is also important for the entire region and the surrounding villages, as the mine generated multiple infrastructure works, thus generating a chain of well-being for its inhabitants. Developing new schools, cultural, sports facilities, housing, personnel transport systems and a supply network for workers, known as the “miner’s stores”, in addition to thousands of direct and indirect jobs.
  • Lithium can turn Mexico, in the planet´s chargeable battery. After one of the biggest Li deposit was discovered in Sonora by Bacanora, a Canadian mining company. The technology industry has set its sights on the country with multiple requests from mining companies that want to exploit it, including Chinese corporations. Given this news, the head of the SEMARNAT, Victor Manuel Toledo, described the potential that this represents for Mexico in terms of tax collection and economic recovery, saying that worldwide Lithium has become “the new oil.” Bacanora, in collaboration with the Chinese Ganfeng already plans to raise at least USD $400M to request a license from the Mexican government for the exploitation of a Li quarry allegedly made up of 4.5 M tonnes of this element that has detected, which would later generate profits for these companies of at least USD $1B.
  • Mexico announced USD 4.65B in capital expenditure for new mining projects in 2020-2021. A series of mining companies will commence to build various mining projects in Mexico in 2020. Minera Alamos, expects to initiate construction of its Santana-Los Verdes project in Sonora in Q1, 2020 with an investment of USD $7.55M, which includes the construction of a coal plant, platforms, ponds and various earthworks at the mine site. The complex should start producing in Q3, 2020. It also plans to begin construction of its la Fortuna mine in Durango at the end of 2020 at a total cost of USD $26.9M. Torex Gold Resources Inc., expects to start the construction of its Media Luna mine in Guerrero in Q1, 2021, with a capital expenditure of USD $482M. Media Luna has a capacity of 47M Lb Cu, 170K Oz Au, and 1.7M Oz Ag per year. Prime Mining Corp., plans to begin construction of its Los Reyes project in Sinaloa in June 2021 and end in December of the same year. The capital expenditure of the project is set as USD $89.5M and its capacity is 35K Oz Au and 253K Oz Ag per year, with a useful mine life of 11 years. VVC Exploration Corp., owns the USD $4B Samalayuca copper project in Chihuahua. Samalayuca, currently awaiting a construction decision, has an estimated useful mine life of 16 years. Southern Copper Corporation, is the owner of Mina Pilares in Sonora, which will produce Cu in concentrates to be processed in the La Caridad mine. Mina Pilares, currently awaiting a construction decision, should start producing in H2, 2021. Southern reported that it has already obtained environmental permits and is currently trying to acquire additional land.

ON EXPLORATION

  • GoGold Resources Inc., filed a NI 43-101 Technical Report on its Los Ricos project in Jalisco. Work done by GoGold confirms that the drilling program continues to intersect wide zones of Au & Ag from surface to vertical depths of 300m. The Los Ricos deposit is still open along strike to the north and at depth. It also concludes that although high-grade portions of the vein have been mined out, the structures still have wide mineralized intervals potentially amenable to surface mining methods. A budget of USD $5.3M was proposed to continue the exploration work at Los Ricos project in Jalisco for the year 2020. The company also announced that plans to complete an NI 43-101 compliant Mineral Resource Estimate on Los Ricos in 2020.

ON MINING

  • Telson Mining Corporation, reported some of the reactivation activities carried out at its Campo Morado mine in Guerrero to bring it back into production by mid January 2020. The company has already restored electrical power to the mine site, and personnel have commenced dewatering the mine. Access has been restored to the El largo Zone where there are approximately 50K tonnes of ore available to transport to the mill site that along with 20K tonnes of ore previously transported to the mill will be available for processing upon start-up. Personnel are also advancing on the process of checking, servicing, and repairing as necessary, all mill processing equipment, mobile mining equipment, underground mining equipment, ventilation systems and safety equipment, etc.
  • Newmont Goldcorp, provided a 2020 outlook for its Peñasquito mine in Zacatecas. It plans to produce 575K Oz Au at a cash cost of $570 per Oz Au and AISC of $725 per Oz Au. In addition, the company plans to produce 30 M Oz Ag, 200M Lb Pb, and 425M Lb Zn, at a cash cost of $515 per Oz AuEq and AISC of $805 per Oz AuEq.

ON FINANCING

  • Sonoro Metals Corp., received proceeds of $875K from the sale to Agnico of the 1% NSR on the Chipriona property, located in the Mulatos mining district in Sonora. The NSR originated from the sale of the Chipriona property to Agnico in December 2019 for the amount of $4M plus the NSR.
  • First Mexican Gold Corp., closed the third tranche of its private placement for gross proceeds of $95K. In total, the company issued 20M shares for gross proceeds of $1M (Guadalupe project, Sonora).
  • Great Panther Mining Limited, entered into a USD $10M prepayment agreement with the IXM Group for 100% of the Au-Ag concentrates produced from the Guanajuato mine complex in 2020 and 2021. The prepayment will be repaid on December 31, 2020 and will bear interest at an annual rate of 3-month USD LIBOR plus 5%.
  • Telson Mining Corporation, announced its intention to conduct a non-brokered private placement for gross proceeds of up to CAD $3M (Campo Morado mine, Guerrero).
  • SilverCrest Metals Inc., announced that SSR Mining elected to exercise its shareholder participation right, pursuant to an agreement between the company and SSR Mining dated November 28, 2018. Accordingly, SSR Mining has agreed to purchase 1,819,074 shares of SilverCrest for aggregate proceeds of CAD $13.25M at the same price of CAD $7.28 as the bought deal public offering announced by SilverCrest on December 3, 2019. SSR entered into a transaction with a third party to divest of the 1,819,074 SilverCrest common shares to be acquired pursuant to the private placement at a price of CAD $8.45 per common share for a pre-tax gain of approximately CAD $2.1M. Net proceeds raised by SilverCrest will be used to continue exploration and development of its Las Chispas project in Sonora.

ON RESOURCES AND DEVELOPMENT

  •  Sierra Metals Inc., updated mineral resource estimate for its Bolivar mine in Chihuahua. This mineral resource update includes 13,698m of infill drilling and 41,553m of exploration drilling. Total indicated mineral resources are 11.63M tonnes of 0.95% Cu, 18 g/t Ag, and 0.24 g/t Au (or 1.16% CuEq) for a total of 244.3M Lb Cu, 6.8M Oz Ag, and 90.4K Oz Au (300.1M Lb CuEq). Total inferred mineral resources are 16.69M tonnes of 0.93% Cu, 17 g/t Ag, and 0.30 g/t Au (or 1.16% CuEq) for a total of 342.1M Lb Cu, 9M Oz Ag, and 162.7K Oz Au (428.1M Lb CuEq). Sierra Metals plans to update a PEA for the Bolivar mine which is expected to be released in Q3, 2020. Goal of the PEA is to increase tonnage throughput in excess of 5,000 tonnes per day, which is expected to be reached by the end of 2020.
  • Leagold Mining Corporation, announced a USD $180M expansion plans for its Los Filos mine in Guerrero. Expansion began in July, with the final phase of development scheduled to conclude by end-2021. The Los Filos expansion will play a key role to consolidate the recently merged Equinox-Leagold combined company as a producer of 1M Oz Au per year in 2021, based on output from current mines in Brazil, Mexico and USA. This expansion will position Los Filos mine as one of the Mexico´s biggest Au mines, combining underground and open pit operations across the Los Filos, Bermejal and Guadalupe deposits. The expansion is expected to roughly double production at Los Filos in 2021 from around 200K Oz Au produced in 2019 to 400K Oz Au.

ON DEALS AND CORPORATE ISSUES

  • Prospero Silver Corp., sold its Mexican subsidiary Minera Fumarola S.A. de C.V. to an arm’s length purchaser, Aquatio S.A. de C.V. of Jalisco State, Mexico, for a cash purchase price of USD 5K, and assumption of all statutory liabilities and obligations of the subsidiary in Mexico, including property maintenance and abandonment, statutory employee severance, and tax obligations, estimated to aggregate to USD $95K.
  • Equinox Gold Corp., and Leagold Mining Corporation, mailed management information to approve business combination to create a premier Americas Au producer. “Pursuant to the transaction, Leagold shareholders will receive 0.331 of an Equinox Gold share for each Leagold share held. At closing, existing Equinox Gold and Leagold shareholders will own approximately 55% and 45% of the combined company, respectively, on an issued share basis. The combined company will continue as Equinox Gold under the ticker symbol “EQX” on both the Toronto Stock Exchange and the NYSE American Stock Exchange” (Los Filos mine, Guerrero).
  • Goldgroup Mining Inc., provided a legal update on its dispute with DynaResources concerning the San Jose de Gracia mine in Sinaloa. It is awaiting the written judgment of the 11th Federal Circuit Collegiate Court in Mexico to be published to assess its contents and reason for judgment. The Company will continue to pursue all legal avenues in Mexico to achieve a favorable resolution to the DynaUSA dispute. It also will continue the enforcement of the final judgment from the US District Court for the District of Colorado which confirmed the company´s previously announced favorable award in the arbitration against DynaUSA.

ON SOCIAL RESPONSIBILITY

  • Fresnillo plc., generated more than 9,000 jobs in 2019. The company is making every effort to be competitive, to continue generating jobs for Fresnillo and generate economic benefits for the population.
  • Zacatecas students, created a protective device for miners to detect risk of fatigue, heart rate and blood pressure. The intelligent device called EPIMIN is set inside the hard hat of the miners to detect fatigue of the miners, based on heart rate, blood pressure, and temperature, with the variable that, in case of presenting any irregularity, the device will issue a sensory alert to the user and will alert a monitoring center located on surface with the person in charge. “An investment in technology like this will allow mining companies to control work risks, anticipate them, prevent them and get to the longed for zero accidents.”

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

On the picture above, a Mn-Fe/calcite fault-bx hosted in rhyolites in a prospect in Chihuahua, Mexico.  Photo by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the Second Week of December, 2019

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IMG_0833

By Jorge Cirett

During the 50th week of the year (December 9th to December 15th, 2019), at least 18 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, Bacanora Minerals lithium deposit in Sonora is considered the biggest resource of the metal in the world, according to Francisco Quiroga, Mining sub-secretary. Camimex calls to maintain the competitivity of the mining sector, as it is being threatened by a environmental tax proposal. Newmonts Goldcorp´s Peñasquito mine in Zacatecas is to lift Mexican gold production in 2020, according to BNamericas. Camimex invited the secretary of the environmental agency (SEMARNAT), Victor Manuel Toledo to visit one of the mining units, for him to review what sustainable mining is. He will also be visiting Hermosillo and Ures, meeting with authorities of the municipalities affected by a toxic leak on 2014. ON EXPLORATION, in Chihuahua, Mammoth Resources updated on exploration efforts by partner Centerra at its Tenoriba project; Kootenay Silver released good drilling results on its Columba property. ON MINING, Alamos Gold and Golden Minerals released results for the third quarter 2019. GoGold released results on the year ending in September 2019. ON FINANCING, Advance Gold closed the second tranche of its private placement for gross proceeds of $42 K. Azure Minerals announced the receipt of A$467 K of VAT back taxes (dating to 2016) from the government. Tamino Minerals is planning to become “Pink Current” very soon on the OTC. Odyssey Marine Exploration obtained commitments for up to $4.2 M.   ON RESOURCES AND DEVELOPMENT, Candelaria Mining released results on 15 new holes from the Mirador mine at the Altagracia project in Oaxaca. Pan American Silver announced an initial resource estimate, on the polymetallic  skarn deposit at La Colorada, of 72.5 M tonnes @ 44 gpt Ag, 0.17% Cu, 2.02% Pb, 4.40% Zn, remaining open in most directions, and containing over 100 M Oz Ag. Defiance Silver updated on exploration efforts at its San Acacio project in Zacatecas and at its Tepal project in Michoacán. Prime Mining released surface road cut and trench assays from its Guadalupe de los Reyes project in Sinaloa. ON DEALS AND CORPORATE ISSUES, Tamino Minerals has signed a LOI on the Ofelia property, in Sonora. Discovery Metals informed Eric Sprott now owns 21% interest in the company. Newmont Goldcorp announced a deal with the Cedros community on water resources. ON SOCIAL RESPONSIBILITY. A mining gathering was held in Banamichi, Sonora. The Asociación de Mineros de Sonora celebrated its 40th anniversary. The first “Comité de Desarrollo Regional para las Zonas Mineras” was created in Sonora, to recommend the use of the Mining Fund in certain infrastructure projects in mining areas. Dr. Vagón, Grupo Mexico’s health itinerant clinic was at La Junta, and soon to be moved to the nearby Ciudad Cuauhtémoc, both in Chihuahua. The Consorcio Minero Benito Juárez and the Fundación Bécalos Televisa delivered 120 scholarships to excellency students. A fair was held in Tayoltita, Durango, to bring awareness of the mining work and environment to inhabitants and family members of mine workers. Minera Media Luna is showing a strong support for education in Guerrero, with shcolarships, internships and support to local schools. The Sonora miners association (AMSAC) signed an agreement with the Consejo Regulador del Bacanora, to source agave saplings on its greenhouses to the agave growers. The Mexican gray wolf has left the list of extinct species in the wild, moving to the category of species on extinction risk.

ON MEXICO ISSUES

  • The lithium deposit in Sonora is the major project of its type in the World, according to Francisco Quiroga, Sub-Secretary of Mining, on an interview by a journalist known country wide. He cautioned on not hurrying up to celebrate, as the lithium still has to be extracted, and be metallurgically separated of the other minerals present in the ore (In this project, unlike other, lithium is contained in a clay). This project is assumed to have 243 M tonnes of lithium, surpassing the Thacker Pass deposit in Nevada, the second lithium deposit, with reserves of 179 M tonnes of lithium. The deposit is co-owned by the English company (not Canadian, as stated in the note) Bacanora Lithium and the Chinese Ganfeng Lithium, and located in the Bacadehuachi municipality (tens of kilometers from the Campo Verde Protected Natural Area and the Chihuahua border).
  • Camimex calls for maintaining the competitivity of the Mining Sector in Sonora. The call was made by Karen Flores, Camimex head, on the first Universitary Mining Gathering held in Banamichi, Sonora. She called for a proposal to tax mining operations on environmental grounds to be repelled. Such tax would transform Sonora in one of the more expensive places to mine, in an industry that is already heavily regulated and taxed. According to the authorities, mining in 2018 provided more than 46 billion pesos (US$2.36 billion) in taxes, 9,000 billion pesos (US$461 M) in rights and more than 4,500 billion pesos (US$230 M) in resources for the Mining Fund.
  • Newmont Goldcorp’s Peñasquito mine in Zacatecas is to lift Mexican gold production in 2020, when production by other big players is to decline. The combined production by the three biggest producers in Mexico, Fresnillo, Newmont Goldcorp, and Alamos Gold should reach 1.59 M Oz Au, above the 1.22 M Oz Au mines in 2019. This is a 30% increment year on year, achievable if the companies reach their mid-point guidelines. According to BNamericas this figure is more than half the 3.15 M Oz Au to be produced by more than 20 companies in Mexico. Fresnillo’s production reached 923 K Oz Au in 2018, expects to produce 885 K Oz in 2019, 785 K Oz in 2021 and 665 K Oz in 2022; the decline motivated by the end of production at the Noche Buena mine and less production at Herradura. Meanwhile, Peñasquito expects to produce 575 K Oz Au in 2020 , and a little bit more in 2021, before production starts to decline due to lower grades. Alamos Gold expects to produce 150 – 160 K Oz Au during 2019 in Mulatos, while the Chanate mine is to produce only 5 K Oz. Minera Frisco and Agnico Eagle have seen their gold production dwindle in 2019, while Torex Gold reached 138 K Oz Au produced during the third quarter, and the company expects to sell 430 K Oz Au this year. Leagold also is to increase production at Los Filos, expecting to double on the 200 K Oz Au forecasted for this year.
  • Camimex invited Victor Manuel Toledo, secretary of the environment and natural resources (SEMARNAT) to visit one of the mining units, for him to review what sustainable mining is. Earlier in the day, in the morning presidential conference, Toledo stated that Semarnat is not against mining: “For Semarnat there is not good or bad mining, revisions have to be on a case by case basis, and confirm through inspection its adherence to norms”.
  • Victor Manuel Toledo, secretary of the environment and natural resources (SEMARNAT) is to be in Hermosillo in December 18th for the presentation of a book on the toxic leakage of 2014, and in Ures to meet with affected parties and authorities of municipalities within the Rio Sonora basin.
  • Alberto Orozco, president of the Sonora Mining Cluster, praised the visit that Victor Manuel Toledo (Environmental Secretary) is to make next week to a mining unit in Sonora. Orozco stressed the presence in Sonora of companies highly involved in the social and economic development of the producing regions in a sustainable manner. He also pointed that the Sonoran mining production is 36% of the national production, contributing with 18% of the State gross domestic product.

ON EXPLORATION

  • Mammoth Resources Corp. updated on exploration efforts at its Tenoriba project, funded by partner Centerrea Gold Inc.. Field logistics have been set, all historical geologic data compiled for Centerra’s review and interpretation and a 3D model is under preparation; all un-assayed core was sent for analysis, and the previous drill program permit is being closed, and a new one is to be prepared. Strong argillic, argillic and minor vuggy silica is present on volcanic rocks on a 4 to 6 Km long belt, with geophysics re-processing pointing to a larger target than previously envisaged, and a new 30 line-Km survey is being planned. A large soil anomaly highlights the eastern part of the corridor. Mammoth is working on community consultation processes with the two ejidos (communal lands) involved.
  • Kootenay Silver Inc. released results from six holes drilled at its Columba project in Chihuahua. Highlighted intervals comprise: 25.85 m @ 200 gpt Ag (including 11.5 m @ 415 gpt Ag, which includes 4.0 m @ 721 gpt Ag, which includes 1.9 m @ 982 gpt Ag) in silicified breccias in proximity to a lithological contact; 6.25 m @ 67 gpt Ag (including 2.09 m @ 172 gpt Ag); 3.0 m @ 314 gpt Ag (including 0.63 m @ 776 gpt Ag); 59.8 m @ 48 gpt Ag (including 9.57 m @ 146 gpt Ag); 6.63 m @ 103 gpt Ag and 1.0 m @ 124 gpt Ag. Several of the intercepts are in quartz veins in rhyolite, as quartz stockworks and as quartz-barite veins.

ON MINING

  • Alamos Gold Inc. released some production figures for 2019, including data on its Mexican production. At Mulatos, in Sonora, during the first nine months of this year 20 K tonnes per day were stacked @ 0.92 gpt Au, with a recovery of 67%, to produce 108 K Oz Au at cash cost $772 and a mine-site AISC of $861. Production from the Mulatos district is expected to total 150-160 K Oz Au in 2020, with ore mined from the Mulatos, El Victor and San Carlos open pits, as well as new production from Cerro Pelon. “A total of $7 million has been budgeted at Mulatos for exploration in 2020 which includes 14,000 m of drilling focused in the Mulatos near-mine, Carricito and La Yaqui Grande areas. A number of regional exploration targets have been identified in 2019 from the property-wide VTEM geophysical survey that was completed in late-2018. A focus of the 2020 regional exploration program will be to further evaluate these targets through systematic mapping, sampling, and ground geophysics”.
  • Golden Minerals Co. released results for the third quarter 2019. During the period Golden reported revenue of $1.9 M related to the lease of Velardeña’s oxide mill and costs of $0.6 M related to the services provided under the terms of the lease, for a net operating margin of $1.3 M. Exploration expenses were $0.9 M, Velardeña care and maintenance $0.4 M, administrative expenses $0.7 M for a total loss of $1.8 M for the quarter. Last October Golden entered into an agreement with Magellan Gold Corp. to sell the company’s option to earn a 100% interest in the Santa Maria and Las Marias exploration properties in Chihuahua. Cash and cash equivalents of $2.9 M by the end of the period.
  • GoGold Resources Inc. announced financial results for the year ending 2019. During the last quarter period the company acquired the Los Ricos project in Jalisco, for share consideration of $5.4 M and cash $4.5 M, of which $3.9 M is payable over three years. During the period the company sold 1 M Oz Ag and 8,752 Oz Ag, produced 1.78 M Oz AgEq, had income of $8.1 M at an AISC of $14.82 per Oz AgEq and cash cost $11.80 per OZ AgEq, a gain of $11.8 M on the sale of the Santa Gertrudis project royalty and has a net working capital of $13.1 M.

ON FINANCING

  • Advance Gold Corp. closed the second and final tranche of the private placement previously announced, for gross proceeds of $42 K (Tabasqueña, Zacatecas).
  • Azure Minerals Ltd. announced that the Mexican tax office has paid this week the amount of MX$6.19 M, approximately A$467 K. This is the interest component from a previous payment, bringing the total received by Azure to A$1.23 M. The payments are the result of the successful resolution of the company’s legal action for the recovery of IVA (the equivalent to GST, or VAT) dating to the 2016 financial year. A fee of 15% is payable to the legal and tax advisors involved (Alacrán, Sonora).
  • Tamino Minerals Inc. is planning to become Pink Current very soon on OTC markets, abiding to OTC disclosure lines. As of the end of September 2019, the company has 370.6 M shares, of which Pedro Villagran holds 138.8 M and Joseph Berry 33 M.
  • Odyssey Marine Exploration, Inc. obtained commitments for up to $4.2 M in funding in two separate arrangements. A group of existing shareholders is to provide up to $2 M in funding ($539 K already submitted) as advance against a portion of multi-million dollar payment Odyssey expects to receive within the next six months, related to a previously completed ship-wreck project. In addition, “a term sheet has been executed and definitive agreements are being drafted with the group that has already committed up to $6.5 million in non-recourse legal funding for the NAFTA action for up to an additional $2.2 million” (Bay of Ulloa, Baja California Sur).

ON RESOURCES AND DEVELOPMENT

  • Gold Resource Corp. released drill results from 15 holes from the Mirador mine area in the Altagracia project in Oaxaca. The Mirador mine is 16 Km NW from the Company’s Aguila project and processing facilities. Highlighted results comprise: 9.21 m @ 0.24 gpt Au, 260 gpt Ag (including 0.73 m @ 0.58 gpt Au, 1,085 gpt Au); 1.38 m @ 4.39 gpt Au, 1,455 gpt Ag; 1.08 m @ 1.81 gpt Au, 2,190 gpt Ag; 5.99 m @ 1.04 gpt Au, 206 gpt Ag (including 1.54 m @ 2.02 gpt Au, 590 gpt Ag); 3.72 m @ 1.44 gpt Au, 910 gpt Ag (including 1.0 m @ 2.84 gpt Au, 2,610 gpt Ag); 2.67 m @ 1.10 gpt Au, 354 gpt Ag.
  • Pan American Silver Corp. announced an initial mineral resource estimate for the large polymetallic deposit discovered in 2018 at La Colorada mine in Zacatecas. The inferred mineral resource is 72.5 M tonnes @ 44 gpt Ag, 0.17% Cu, 2.02% Pb, 4.40% Zn, remaining open in most directions and containing 102 M Oz Ag, 3.2 M tonnes of Zn, 1.5 M tonnes of Pb, and 121 K tonnes of Cu. Most of this mineralization is contained within a larger mineralized skarn 500 m x 600 m, between 600 and 1,700 m of depth. To make the geologic interpretation and resource estimation, 65 drill holes totalling 54,000 m of drilling were utilized.
  • Defiance Silver Corp. updated on exploration efforts to be made at its San Acacio project in Zacatecas. Targeted core re-logging and selective re-assay is on-going and will continue through 2020, while field exploration involves surface geochemistry outside the resource area, systematic underground mapping and sampling and regional targeting are carried out.
  • Defiance Silver Corp. announced OreQuest has been planning an exploration program at Tepal, in Michoacan. The aim is to follow up on high-grade drill results as the 1.42 m @ 25 gpt Au, 565 gpt Ag of last year campaign, which is coincidental with highly anomalous surface geochemistry and an untested chargeability anomaly.
  • Prime Mining Corp. released results from surface exploration at it Los Reyes property in Sinaloa. The trenching program has an advance of 25% with highlighted results of 5 m @ 1.0 gpt Au, 11 gpt Ag; 10.5 m @ 2.0 gpt Au, 18 gpt Ag; 16.5 m @ 2.5 gpt Au, 40 gpt Ag; 36.0 m @ 1.84 gpt Au, 13 gpt Ag; 34.5 m @ 4.2 gpt Au, 21 gpt Ag; 13.5 m @ 1.54 gpt Au, 37 gpt Ag in rod cuts, and 9 m @ 0.92 gpt Au, 22 gpt Ag; 4.5 m @ 2.66 gpt Au, 30 gpt Ag; 13.5 m @ 1.42 gpt Au, 49 gpt Ag; 13.5 m @ 1.59 gpt Au, 28 gpt Ag; 7.5 m @ 1.84 gpt Au, 37 gpt Ag; 16.5 m @ 1.04 gpt Au, 23 gpt Ag; 15.0 m @ 5.58 gpt Au, 23 gpt Ag in trenches. The company is working with the database of 493 historic drill holes to establish a new 43-101 compliant resource (currently holding 380 K and 155 K Oz Au in the indicated and inferred categories respectively).

ON DEALS AND CORPORATE ISSUES

  • Tamino Minerals Inc. informed it has singed a letter of intent (LOI) on the Ofelia property in Sonora. The LOI terms state four years of staged payments totalling US$1 M plus a 2% NSR, and provides a 90-day term for due-diligence work.
  • Discovery Metals Corp. announced that with the conversion of 3.3 M subscription receipts to shares, Mr. Eric Sprott owns now approximately 21% interest in the company (Cordero, Chihuahua).
  • Newmont Goldcorp. announced that the Peñasquito mine and the nearby San Juan Cedros community (one of 25 neighbouring communities) in Zacatecas, agreed to an infrastructure solution for sustainable water availability for the community. The 30-year water agreement includes additional water wells to supplement the 600 K liters per-day reverse osmosis drinking water plant the company built in 2018.

ON SOCIAL RESPONSIBILITY

  • A Mining Gathering was held in Banamichi, Sonora, with more than 600 attendees, mostly students, with the purpose of letting them know the opportunities for internships and employment in mining units. Among the attendees were also governors of mining states, the ambassadors of mining countries, Congress representatives, Union leaders, 14 majors and representatives for mining companies, mining associations and mining communities.
  • The Asociación de Mineros de Sonora (Sonora’s Miners Association, or AMSAC) celebrated its 40th The celebration included a series of presentations and a formal dinner. Among the speakers were Francisco Quiroga (Mining Sub-secretary), Karen Flores (Camimex), Ernesto [Ríos (Americas Mining) and Lourdes McPherson (Argonaut Gold).
  • The first “Comité de Desarrollo Regional para las Zona Mineras (Mining Zones Development  Committee) was created in Hermosillo, Sonora. The finality of such committees is to assess and approve investment projects derived from the Mining Fund, incorporating all interest groups. The committee is integrated by:Comite Fondo Minero11The fist session is to be held in February 28, 2020, and the second on August 28, 2020.
  • Dr. Vagón is to be at La Junta, Chihuahua. From the 12 to the 16 of December, 2019. Among the services to be provided are: general consult, dermatology, pediatric care, geriatric care, odontology, chiropractic, physic rehabilitation, optometry, audiometry, mastography, colposcopy, family planning, lab test, diabetics clinic, psychology and nutrition. This itinerant train-mounted clinic has the capacity to Attend 550 persons daily.
  • The Safety, Environment and Social Responsibility Fair San Dimas 2019, was held on December 6 in Tayoltita, Durango. The different departments of the First Majestic mine displayed details on their work on the mining process, in a didactic and entertaining way, to workers, suppliers, municipality and State authorities, as well as their families and local inhabitants. Radio Plata (Silver Radio) was commissioned, the first radio station to be located in the vicinity, is part of the company’s Centro Cultural, where educative, social and cultural activities are to take place.
  • Minera Media Luna is showing a strong support for education in Guerrero. With support from local authorities in Cocula, the Instituto Tecnológico de Iguala, the Universidad Tecnológica Autónoma del Norte de Iguala, the State government, the Instituto Estatal para la Educación de Jóvenes y Adultos de Guerrero and the general population in Cocula, the company has: installed programs for diminishing the educative lag in primary and secondary education; taken 36 students in internships from local universities; supported 86 students through scholarships; invested $500 K pesos along with the Cocula municipality for the hiring of primary education personnel; participated in the Fourth Week of Mining on the Universidad Autónoma de Guerrero…. And several other programs in education not posted here for lack of space.
  • AMSAC, the Sonora Miners Association, signed an agreement with the Consejo Regulador del Bacanora (Regulatory Council for Bacanora, a spirits drink). Under this agreement , several mining companies are to grow the needed agave saplings for the production of Bacanora in their green houses, to be transplanted in the field by the agave growers.
  • Minera Peña Colorada presented the “Ilustred Guide to Wildlife in the Minatitlan Microbasin”, at the Feria Internacional del Libro 2019, in Guadalajara, Jalisco. This work was accomplished with the support of the Universidad Nacional Autónoma de México, and the Benemérita Universidad de Puebla.
  • The Mexican gray wolf has left the list of extinct species on the wild, moving to the category of species on extinction risk. This is the result of an international effort among the USA and Mexican governments, with the participation of Grupo Mexico. The declaration comes after 12 liberations and the documentation of 9 successful litters with some 30 puppies on the wild. Grupo Mexico, as well as other mining companies, has an UMA (Environmental Management Unit) that take care and reproduce threatened species.
  • Dr Vagón, Grupo Mexico’s health train, is to be on Ciudad Cuahutémoc, Chihuahua, from December 18 to December 22. The 17 train carriages itinerant clinic has the capacity to attend 600 persons per day, providing for a wide array of services, like diagnostics, ailment prevention, dermatology, odontology, physical rehabilitation, optometry, audiometry, psychology, nutrition, diabetes and chiropractic treatments.

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: Sheeted quartz veinlets from an orogenic gold project in Oaxaca. Picture by Jorge Cirett

IMG_0833

The Mining and Exploration News in Mexico: Highlights on the First Week of December, 2019.

/ gambusinoprospectormexico / Leave a comment

chalcedonic quartz vein

By Miguel A Heredia

During the forty-nine week of the year (December 2nd to December 8th, 2019), at least 31 press releases were announced by companies working in Mexico, with nine commenting on Mexican issues, six informing on exploration results, four announcing financial rounds, four reporting on resources and developments of their properties, three communicating production and financial results, three disclosing deals and corporate issues and two discussing issues on social responsibility.  ON MEXICO ISSUES, Alejandro Tello, governor of Zacatecas State, obtained MXP $430M from the 2016-2017 Mining Fund for infrastructure work. Mexico´s mining production suffered a sharp decline in September. Fernando Alaniz, president of the Mining Chamber of Mexico (CAMIMEX), demanded for long-term certainty in Mexico for mining investment purposes. Fresnillo plc announced that it will allocate approximately USD $670M in new and sustainable projects.  Grupo Mexico announced an investment of USD $250M in the construction of a wind farm in Nuevo León. A Minister of the Supreme Court of Justice proposed to invalidate the changes applied in 2019 to the Mining Fund. CAMIMEX announced that mining companies claime tax return to have funds to invest. The Under Secretariat of Mining, Francisco Quiroga Fernández, confirmed there is a lithium deposit in Bacadéhuachi, Sonora.  ON EXPLORATION, In Baja California Norte, One World Lithium provided an update on its 4 holes drilling program being conducted at its Salar del Diablo project.  In Sonora, Colibri announced results from 100 samples collected at its Evelyn project. In Chihuahua, Radius and its JV partner Pan American Silver released results from the phase 3 drilling program at its Amalia project, and Valterra refined drill targeting on its Los Reyes project. In Jalisco, GoGold released drill results from eight holes collared at its Los Ricos project. In Oaxaca, Megastar identified multiple high potential epithermal targets at its Magdalena project. ON MINING, Santacruz reported Q3, 2019 production and financial results (Veta Grande, Zacatecas).  Alio Gold announced production and cost guidance for 2020. (San Francisco mine, Sonora). Consolidated Zinc advised that mining of its Plomosas mine in Chihuahua will be managed and operated by the company. ON FINANCING, San Marco revised its non-brokered flow through private placement on October9, 2019 (Chunibas project, Sonora). Tocvan Ventures announced that its shares are now listed on the Frankfurt Stock Exchange with the symbol TV3 (El Pilar project, Sonora). First Mining announced a flow through equity financing for gross proceeds of approximately to $2M (San Ricardo project, Sonora). ON RESOURCES AND DEVELOPMENT, Capstone reported that drilling results from its Cozamine mine in Zacatecas returned higher grades and wider intercepts than in current reserves. Starcore presented its updated NI 43-101 mineral reserves and resources at its San Martin mine in Queretaro. US Antimony provided an update on its Puerto Blanco mill in Guanajuato for its Los Juarez Au-Ag and Sb deposit in Querétaro. Mexus Gold announced that its new 500GPM Merrill Crowe Au recovery plant is complete and operational (Santa Elena mine, Sonora). ON DEALS AND CORPORATE ISSUES, San Marco retained Momentum Public Relations Inc., to assists with strategic business development activities (Chunibas project, Sonora). Argonaut provided an update on its San Antonio project permitting in Baja California Sur.  ON SOCIAL RESPONSIBILITY, Grupo Mexico, through its health and social care program called Dr Vagón, attended nearly 3,000 consultations in Delicias, Chihuahua. Peñoles, through its Community Center, informed about the planned activities to be performed in the coming Christmas season.

ON MEXICO ISSUES

  • Alejandro Tello, governor of Zacatecas State, obtained $430M from the 2016-2017 Mining Fund to be invested in 2010, in 41 infrastructure works in Zacatecas, such as construction and rehabilitation of roads, and sports infrastructure projects, among others.
  • Mexico’s mining production, suffered a sharp decline in September while the industry continue dealing with community relations, security and political challenges. Overall production fell 4.7% compared to the same month last year, with Au and Pb among minerals registering double-digit falls. Ag and Cu production fell 2.2% and 1.3%, respectively, with coke, sulfur and fluorite seeing the greatest decreases, 22.3%, 13.2% and 12.7%. Only the production of coal, Zn and non-coking plaster increased, by 7.2%, 2.0% and 1.3%. Part of the fall can be attributed to a blockade at the Peñasquito mine in Newmont Goldcorp, one of Mexico’s largest producers of Au, Ag, Pb, and Zn.
  • Fernando Alanis, president of the Mining Chamber of Mexico (CAMIMEX), demanded for long-term certainty conditions in Mexico for mining investment purposes. The mining sector has invested significant amounts in recent years, with 2012 being the year of greatest investment, which was approximately USD $8,043M. Mining investment has been falling and in 2016 it reached USD $3,752M, and the current year it is believed to have exceeded USD $2,600 M. “Mining is a sector that can generate a lot of investment in places that require many services and support from our entire sector and the only thing we ask is that there be certainty conditions in order to continue generating investment attraction”.
  • Fresnillo plc, announced that it will allocate USD $670 M in new and sustainable project, increasing its investment by 14.5% in 2020. “The capital investment forecast for new 2021 projects is expected to be around USD $475M, while by 2022, USD $415M, ”said Octavio Alvidrez, General Director of the company. By 2020, Fresnillo plans to extract 54M Oz Ag, 8% lower than expected by the end of 2019; while Au would be 857 K Oz. By 2021 the company expects to increase the extraction of Ag by 22%, as they expect to obtain 66 M Oz.
  • Grupo Mexico, reported an investment of USD $250M in the construction of a wind farm in the state of Nuevo León, México. The Fenicias project will have a production capacity of 168 megawatts and will be interconnected with the National Electric System through the construction of a transmission line of more than 60 km in the area of ​​Reynosa, in the state of Tamaulipas. “Grupo México will increase its power generation capacity to almost 800 megawatts, becoming one of the main power generators in the country,” said the company, in the release. The commercial operation of this wind farm is planned to begin in early 2021.
  • Industrias Peñoles S.A.B. de C.V., announced that it continues growing and now there are already 31,500 workers. The General Director of Peñoles, Fernando Alanís Ortega, also confirmed that all of its 2019 production is sold.
  • A Minister of the Supreme Court of Justice, proposed to invalidate the changes applied to the Mining Fund in 2019. The Mining Fund was reformed in the Revenue Law of the Federation of 2019, removing from the states and municipalities the resources raised by the extraordinary right to mining created in 2014. This reform caused 33 controversies, one of the Chihuahua Executive, which is the first on the list, and 32 of municipalities of five states. Until 2018, the collection of mining rights was divided into two exchanges: 22.5% was distributed to all states and Mexico City as a federal share -which in 2018 was MXP $2,605M, and the remaining 77.5 percent was sent to the Mining Fund, which accumulated MXP $11,325M from 2014 to 2017. Municipalities received 62.5% of the Mining Fund for public works premises, which in the case of Chihuahua alone included 330 projects in four years. After the 2019 reform, the money went to the Ministry of Economy (SE) with the idea of ​​applying them for the Welfare Tandas, a program of the current government that gives credits to micro entrepreneurs for up to MXP $15K. In 2020, the changes to the Mining Fund will be applied in the Federal Law of Rights, which is where it has existed since its creation. Now, the majority of Morena in Congress determined that 85 % of the money will go to the SEP for the construction of schools, 10% to the federal government for other works, and 5% to the SE to supervise the mining activity, without funds being provided for local governments of mining areas, nor to distribute funds to its entities.
  • The Mining Chamber of Mexico (CAMIMEX), said that companies in the mining sector are claiming the return of taxes to maintain their cash flow and have funds to carry out new investment projects. In a statement, CAMIMEX said that, being highly exporting companies, they always get a balance in favor when they file their returns with the Tax Administration Service (SAT).
  • The Under Secretariat of Mining, Francisco Quiroga Fernández, confirmed the existence of a lithium deposit in Bacadéhuachi, Sonora, which will begin production in 2022. Sonora is the main mining state in the country and with the discovery of this site reinvents itself, since in the world there is a race to develop lithium and now the state is within that future.

ON EXPLORATION

  • One World Lithium Inc., provided an update on its 4 holes drilling program being conducted at its Salar del Diablo project in Baja California Norte. To date, hole DDH-1 has been collared to a depth of 650m, and hole DDH-2 has reached 590m with a planned depth of 650m. Hole 3 will commence soon at a location where there is evidence of historic and currently hydrothermal activity, which can be a source of lithium. Depending on the hole DDH-3 results, a fourth hole will be drilled to complete the planned drilling program.
  • Colibri Resource Corporation, announced results from 100 samples collected at its Evelyn project in Sonora. Of the samples taken, 30 returned >0.1 g/t Au, 24 returned > 0.2 g/t Au and 12 returned > 0.75 g/t Au. With the recent mapping and sampling program conducted at the Evelyn project, the compnay has identified two separate NW corridors with favourable structures containing Au: Cerro Rojo and El Sahuaro areas. Rock-chip sampling from these areas have returned encouraging values ranging from 0.5 up to 73.4 g/t Au and correspond with anomalous Au soil samples taken previously. Colibri is planning to conduct a 1,000m drilling program to test these target areas.
  • Radius Gold Inc., and its JV partner Pan American Silver Corp., released results from the first 2 diamond drillholes of the phase 3 drilling program at its Amalia project. Hole AMDD19-016 encountered 1.53 g/t Au and 41 g/t Ag over 120m (75m of true width), related to disseminated fine black sulphides and sulphide veining in ignimbrite rhyolites and transitioning to intense silicification, stockwork veining, and breccias. Hole AMDD19-17, was collared 100m north of hole AMDD19-016 and intersected with anomalous values up to 2.26 g/t Au and 23 g/t Ag over a section of 30m wide silicified fault breccia, but no potentially economic mineralization was encountered. Drilling is ongoing at Amalia project, and results will be released upon they become available.
  • Valterra Resource Corporation, refined drill targeting on its Los Reyes Cu-Au project in Chihuahua, using the recently completed surface sampling along an 800m strike length of a Cu-Au skarn and a 4.8 line km 2D/3D DCIP geophysical program. 22 out of 28 samples returned Cu values > 1% at an average grade of 3.1% Cu and up to 5.9% Cu. The anomalous samples returned up to 0.57 g/t Au, 25 g/t Ag, 0.47% Mo, and 1.7% Zn. The geophysical survey identified a strong conductivity anomaly along the intrusive contact which projects more than 400m through four of the five main areas of historic old workings and defines the main target for test drilling. Conductivity and chargeability anomalies were also identified in all the survey lines and are spatially associated or adjacent to areas of known historical surface mineralization. “The Company is initially targeting a 5-10M tonnes, shallow high grade Cu-Au resource localized along the strike length of the exposed skarn zone. Further work will examine the deeper potential of the mineralizing system including a potential Porphyry Cu-Au source for the shallow high-grade mineralization.
  • GoGold Resources Inc., released drill results from the last eight holes collared at its Los Ricos project in Jalisco, of which four were drilled in San Juan Area, two in the Main Area, and two along the south edge of the Main Area. Highlights of the holes collared in the San Juan Area include hole LRGG-19-073 with 1.12 g/t Au and 117 g/t Ag (2.67 g/t AuEq or 200 g/t AgEq) over 33.5m, including 3.01 g/t Au and 184 g/t Ag (5.47 g/t AuEq or 410 g/t AgEq) over 9.5m, and including 1.81 g/t Au and 291 g/t Ag (5.70 g/t AuEq or 427 g/t AgEq) over 3.0m; hole LRGG-19-76 with 0.73 g/t Au and 123 g/t Ag (2.38 g/t AuEq or 178 g/t AgEq) over 38.5m, including 1.70 g/t Au and 260 g/t Ag (5.17 g/t AuEq or 387 g/t AgEq) over 5.8m, and including 1.58 g/t Au and 220 g/t Ag (4.51 g/t AuEq or 338 g/t AgEq) over 6.0m; and hole LRGG-19-77 with 1.03 g/t Au and 94 g/t Ag (2.29 g/t AuEq and 172 g/t AgEq) over 26.0m, including 4.28 g/t Au and 241 g/t Ag (7.49 g/t AuEq or 562 g/t AgEq) over 4.3m. In the Main Area, hole LRGG-19-065 encountered 0.23 g/t Au and 84 g/t Ag (1.35 g/t AuEq or 101 g/t AgEq) over 13.1m, including 0.50 g/t Au and 155 g/t Ag (2.57 g/t AuEq or 192 g/t AgEq) over 5.4m. To date, GoGold has completed 90 diamond drill holes totaling 15,140m.
  • Megastar Development Corp., identified multiple potential epithermal targets at its Magdalena project in Oaxaca. During the first mapping and sampling exploration campaign conducted at the property, 277 rock chip samples were taken and the geologist found characteristics of a significant epithermal system with 59 rock samples returning above 0.2 g/t Au, 24 samples returning above 0.5 g/t Au, 12 samples returning above 1 g/t Au, and 2 samples returning above 3 g/t Au. “Strong epithermal alteration is found along a minimum 1.7 km long E-W structural trend that shows sheeted quartz vein sets and silicification in conjugate NNW to NNE-NE structural sets. The setting is the eastern structural margin of a caldera where it intersects a prominent regional E-W structural trend. Approximately 4,100 square meters of silicified bladed calcite textures have been mapped within a larger area of strong and sheeted quartz veining. This main zone, along with other prominent outliers, constitutes easy-to-access and drill-ready targets”.

ON MINING

  • Santacruz Silver Mining Ltd., reported Q3, 2019 production and financial results from its operations. At Zimapan mine, Hidalgo, the company milled 82,242 tonnes to produce 606.6K Oz AgEq at cash cost of $41.89 per ton, or $16.32 per Oz AgEq produced, and an AISC of $18.56 per Oz AgEq produced. At Veta Grande mine, Zacatecas, it milled 43,999 tonnes to produce 214.3K Oz AgEq at a cash cost of $47.67 per tonne or $19.79 per Oz AgEq produced, an AISC of $26.77 per Oz AgEq produced. At El Rosario mine, San Luis Potosi, Santa Cruz milled 22,048 tonnes to produce 132K Oz AgEq, at cash cost of $82.10 per tonne or $27.96 per Oz AgEq produced, and an AISC of $38.63 per Oz AgEq produced. Consolidated numbers for its mining operations were 148,289 tonnes milled to produce 952.8K Oz AgEq, at cash cost of $49.58 per tonne or $18.52 per Oz AgEq produced, and an AISC of $22.83 per Oz AgEq produced. Consolidated mining operations generated a gross profit of $102 including gross profit from Zimapan of $992, and gross losses from Rosario and Veta Grande of $672 and $511 respectively plus mine services gross profit of $293.
  • Alio Gold Inc., announced production and cost guidance for 2020. It expects to produce between 12K-15K Oz Au at cash cost of USD $1,700-$1,800 per Oz.
  • Consolidated Zinc Limited, terminated its mining contractor and advised that mining of its Plomosas mine in Chihuahua will be managed and operated by the company in order to significantly reduce its mining cost. “The Company is confident it can deliver improved performance from the mine before the end of December. During this short transition period processing ore and concentrate from existing stockpiles will continue to provide revenue”.

ON FINANCING

  • San Marco Resources Inc., revised it non-brokered flow through private placement announced on October 9, 2019 It now consists of 266,667 shares at a price of $0.15 each (Chunibas project, Sonora).
  • SilverCrest Metals Inc., announced a bought deal financing for aggregate gross proceeds of CAD $80M. Net proceeds will be used to continue the exploration and development of its Las Chispas project in Sonora.
  • Tocvan Ventures Corp., announced that its shares are now listed on the Frankfurt Stock Exchange (FSE) with the symbol TV3. The Company expects that the FSE listing will help increase trading liquidity and facilitate investment in the Company by institutional and retail investors across Europe (El Pilar project, Sonora).
  • First Mining Gold Corp., announced a flow through equity financing for gross proceeds of approximately $2M (San Ricardo project, Sonora).

ON RESOURCES AND DEVELOPMENT

  •  Capstone Mining Corp., reported that the infill drilling program at its Cozamin mine in Zacatecas returned higher grades and wider intercepts than in current reserves. 20 infill drill holes were collared, bringing the total drilled to date to 138 holes of a 200 holes program. Significant drill interceptions were encountered in hole CG-19-S434 with 2.2% Cu and 44 g/t Ag over a true width (TW) of 20.3m, including 5.28% Cu and 97 g/t Ag over a TW of 5m; hole CG-19-S427 with 4.01% Cu and 67 g/t Ag over a TW of 6.1m; hole CG-19-S429 with 1.49% Cu and 51 g/t Ag over a TW of 18.5m, including 1.92% Cu and 70 g/t Ag over a TW of 5.5m; hole CG-19-S433 with 1.27% Cu and 31 g/t Ag over a TW of 24.6m, including 2.99% Cu and 62 g/t Ag over a TW of 7.1m; hole CG-19-S426 with 3.15% Cu and 58 g/t Ag over a TW of 12.2m, including 6.97% Cu and 121 g/t Ag over a TW of 4.1m; and hole CG-19-S418 with 3.98% Cu and 84 g/t Ag over a TW of 8.4m.
  • Starcore International Mines Ltd., released its updated Ni 43-101 mineral reserves and resources at its San Martin Mine in Queretaro. Total proven and probable mineral reserves and resources as September 30, 2019 are 1,434,308 tons of 2.04 g/t Au and 27 g/t Ag for a total of 109.1K Oz AuEq contained. Total inferred and indicated mineral reserves and resources are 1,713,120 tons of 1.91 g/t Au and 19 g/t Ag for a total of 118.4K Oz AuEq contained. The total of Oz AuEq contained in both categories is 227.5K.
  • US Antimony Corporation, provided an update on its Puerto Blanco mill in Guanajuato for its Los Juarez Au-Ag and Sb deposit in Querétaro. It could be ready for cyanide leach testing by the end of December.
  • Mexus Gold US, announced that its new 500GPM Merrill Crowe Au recovery plant is complete and operational. It is capable of handling 3K tonnes a week mining operation and will allow for future expansion as well.

 ON DEALS AND CORPORATE ISSUES

  • San Marco Resources Inc., retained Momentum Public Relations Inc., to assists with strategic business development activities. The agreement with Momentum has a term of 12 months at $8,500 per month (Chunibas project, Sonora).
  • Argonaut Gold Inc., provided an update on its San Antonio project permitting in Baja California Sur. It announced that SEMARNAT issued a ruling to not approve the updated Environmental Impact Assessment (MIA in Spanish), citing that the MIA is non-compatible zoning based on a revised, 2018 zoning plan filed by the Municipality of La Paz. The Company is reviewing all of its options from seeking an amendment to the La Paz 2018 zoning plan based upon the July 2016 supreme court ruling, submitting a revised MIA and legal options.
  • Excellon Resources Inc., provided an update on the ongoing legal action with respect of the La Antigua mining concession included in Excellon´s acquisition of Silver Eagle Mine Inc. in 2009, which includes a portion of the historic mineral resource at Miguel Auza in Zacatecas. Silver Eagle, the Plaintiff, sued Excellon for non-compliance with the agreement and specifically for not operating the Miguel Auza Mine and the Court granted the Plaintiff an award of approximately $23M predominantly in damages for the Miguel Auza mine not being in operation. “Excellon expects this decision to be reversed and rationalized in the federal court system. In the interim, it does not expect any impact on its ongoing business activities”.

ON SOCIAL RESPONSIBILITY

  • Grupo Mexico, through its health and social program called Dr Vagón (the health train), attended nearly 3,000 consultations last week in Delicias, Chihuahua. Specialist of the health train performed 256 mammograms or tests for the detection of breast cancer, Pap smears, and placed the Intra Uterine Device (IUD) in women. Apart from the mastographs and Pap smears, audiometries and vasectomies were performed on men.
  • Industrias Peñoles S.A.B. de C.V., through its Community Center, informed about the planned activities to carry out in the coming Christmas season. Dolores Herrera, coordinator of the center, also announced a proposal for the realization of the Human Development workshop, promoted by the National Association for Personal Improvement AC (ANSPAC), with duration of a year and a half.

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, chalcedonic quartz vein in a low sulphidation epithermal system from a prospect in Durango, Mexico. Photo by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the Second Week of November, 2019

/ Gambusino Prospector / Leave a comment

IMG_0870 - copia

By Jorge Cirett

During the 46th week of the year (November 11th to November 17th, 2019), at least 23 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, mining investments in Mexico decreased from 8 billion dollars in 2018 to 5 billion dollars in 2019. Camimex held a fiscal seminar in Queretaro. Almaden Minerals published a letter on indigenous population around the Ixtaca project in Puebla. Promperú organized in Hermosillo, Sonora, a Commercial Mission of suppliers to mining in Peru. The top ten silver miners in Mexico produced 39.8 M Oz in the third quarter 2019. The mining industry in Mexico has been subject in the past few years of regulatory hurdles that are having a negative effect in investment in the sector, the last one being the decision by SEMARNAT not to authorize the MIA on the Ixtaca project in Puebla until there is a resolution on a legal suit on a piece of land no longer held by the company running the project.  ON EXPLORATION, in Sonora, Evrim updated on exploration of the El Llanito del Nogal property; Magna Gold reported assay results from four more holes at Mercedes. In Sinaloa, Vizsla Resources released high-grade results from rock channel sampling at Panuco.  ON MINING, Premier Gold, Golden Minerals, Starcore International, Americas Gold and Silver, Sierra Metals, Odyssey Marine Exploration and Fortuna Silver presented third quarter 2019 results. Consolidated Zinc and Industrias Peñoles signed an offtake agreement on zinc concentrate. ON FINANCING, Tamino Minerals informed on trading volumes. Mexican Gold received TSX approval for the listing of 50 M warrants from a previous financing. Colibri Resources entered into a loan agreement with Agnico Eagle for $300 K.  ON RESOURCES AND DEVELOPMENT, Defiance Silver is to start a two-phase technical program at San Acacio, Zacatecas. Endeavour Silver reported positive drill results on recently acquired El Curso concession within its Guanaceví property. Peñoles is to invest $70 M at its processing facilities in Torreon. SilverCrest released high-grade results from drilling at the Babi Vista vein at Las Chispas, in Sonora. Bacanora Lithium updated on project development on its Sonora project. ON DEALS AND CORPORATE ISSUES, Evrim signed an agreement with San Marco Resources to acquire the Suanse property in Sonora. Colibri Resources extended an agreement with Agnico Eagle on the disposal of Colibri’s share on the Pitaya project in Sonora.  ON SOCIAL RESPONSIBILITY. Peñoles is conducting courses for children and adults at its Torreon community center. Ternium is organizing health festivals in Nuevo Leon, Coahuila, Jalisco, Michoacan, Puebla and San Luis Potosi. Argonaut sponsored the third edition of the La Colorada race, within the pit benches at the mine in Sonora. The “Doctor Vagón”  itinerant health clinic sponsored by Grupo Mexico provided service to 550 persons in Gomez Palacio, Durango. La Brisa mining company provided cleaning equipment to the Topia community in Durango. Peñoles mining units source 35% of its energy requirements by removable sources, and expects to reach 100% by 2028.

ON MEXICO ISSUES

  • During 2019 investments in the mining sector are to reach five billion (5 mil millones) dollars, according to Francisco Quiroga, Subsecretary of Mining. That’s a decrease from the eight billion (8 mil millones) invested in 2018.
  • Camimex organized the Seminario Fiscal de la Industria Minera in Queretaro. Camimex compromise is complete on its involvement on the “mesa de diálogo” (dialogue meetings) with the federal government, where proposals to incentivize investment are to be exposed, checking on subjects like the fiscal situation, regulatory environment and security. The head of Camimex, Karen Flores, explained that on the Fraser Institute study Mexico is number 71 of 83 jurisdictions on the fiscal regime. Camimex is for the 100 percent deduction of exploration expenses, and the establishment of pacts of fiscal stability on a 15 to 20 year time frame, as is Peru, Chile and Argentina. In a comparative study, Mexico has the heaviest fiscal load among peers like the US (Arizona), Canada (Ontario), Peru and Chile.
  • Minera Gorrión (Almaden) published a letter on indigenous population around the Ixtaca project in Puebla. Although indigenous persons inhabit the area, there is not such an indigenous community within the area of influence of the project. The company stresses the misinformation produced by some activists groups with total impunity, and reaffirms its confidence on institutions and the rule of law.
  • Promperú organized in Hermosillo, Sonora, its II Commercial Mission of Suppliers to Mining in Peru. Several conferences were presented by members of the mining communities and governments of both countries.
  • The top 10 silver mining companies in Mexico had a solid third quarter. During the period these companies produced 39.8 M Oz, compared with 39.0 M Oz produced on the same quarter a year ago. The top producer is Industrias Peñoles, with 15.3 M Oz almost 40% of that amount and 2.2 M Oz less than the same quarter 2018 (Fresnillo, Saucito, San julian, Sabinas). Newmont was the second largest producer with 7.4 M Oz produced at Peñasquito. Other large producers comprise Southern Copper with 3.9 M Oz (undisclosed units), Pan American with 3.6 M Oz (La Colorada), First Majestic (Santa Elena, San Dimas, among others), Coeur Mining with 1.7 M Oz (Palmarejo), Fortuna Silver with 1.7 M Oz Ag (San José), Minera Frisco 1.1 M Oz (El Coronel, San Felipe, Tayahua, San Francisco del Oro, Concheño and Ocampo), Endeavour Silver 900 K Oz (El Cubo, Bolañitos, Guanceví, and El Compás) and Agnico Eagle 800 K Oz (Pinos Altos).
  • Alberto Aguilar, a respected columnist in business circles, elaborated on the hurdles the mining industry is going through with the current federal administration (it fell 3.7% on the third quarter, 2019). Among the issues mentioned is the contraction in mineral production as a result of the imposition of new taxes on mining in 2014, the investment of only 5 billion dollars in 2019 (8 billion in 2018), no concessions have been granted in 2019 and the recurrent illegal blockades without sign of easing. The latest hurdle thrown at the industry is the resolution by SEMARNAT (the Mexican environmental agency) that the Manifestation on Environmental Impact (MIA) for the Ixtaca project in Puebla was not to be granted until a legal suit on a claim no longer held by Minera Gorrion (Almaden Minerals) reaches a resolution. Exploration expenses so far have been $40 M dollars and another $117 M are still to be spent, along with $1.1 B (One billion) to be invested in eleven years (GPM Note.- The head of SEMARNAT, Victor Toledo, is known for its public and vocal anti-mining stance).

ON EXPLORATION

  • Vizsla Resources Corp. released high-grade channel sampling at its Panuco property in Sinaloa. The sampling locations are widespread within the property and the highlighted results comprise: 0.9 m @ 1,860 gpt Ag, 14.55 gpt Au at the Napoleon vein; 0.5 m @ 1,900 gpt Ag, 29.30 gpt Au at the San Antonio-Cordon de Oro vein; 3.6 m @ 691 gpt Ag, 7.00 gpt Au at the San Carlos-Animas vein; 5.95 m @ 584 gpt Ag, 3.97 gpt Au. Veins in the project have lengths of up to 2.8 km, with known ore shoots of up to 500 m in length.
  • Evrim Resources Corp. updated the description on its El Llanito del Nogal property in Sonora. The Suanse porphyry target, is a 1 Km by 600 m area of propylitic to potassic alteration. Soil sampling outlined a 600 m by 500 m Cu anomaly (>100 ppm) in areas of sheeted quartz-chalcopyrite-chlorite-magnetite veins. A ground magnetic survey outlined a donut-shaped anomaly 400 m in diameter and roughly coincident with the soil anomaly. The soil and magnetic anomalies extend northward onto the Suanse claim (see deals section below) where strong argillic, advanced argillic along with vuggy and massive quartz alteration are interpreted as a partially eroded lithocap.
  • Magna Gold Corp. reported assay results on the last four RC holes drilled at the La Lamosa target on its Mercedes project in Sonora. Highlighted intervals comprise: 38.10 m @ 0.67 gpt Au, 13.2 gpt Ag (including 6.10 m @ 1.43 gpt Au, 42.9 gpt Ag); 28.96 m @ 0.76 gpt Au, 8.9 gpt Ag (including 7.62 m @ 1.06 gpt Au, 9.3 gpt Ag); 21.34 m @ 1.61 gpt Au, 2.2 gpt Ag (including 3.05 m @ 6.99 gpt Au, 3.9 gpt Ag); 21.34 m @ 1.21 gpt Au, 11.8 gpt Ag (including 3.05 m @ 4.26 gpt Au). Other targets to follow up include the 600 m long La Lamosa East projection, the Mina de Oro 300 m by 150 m silicified/argillized andesite and rhyodacite, the Salto Colorado breccia 400 m by 150 m in size and Noche Buena, forming a prominent ridge in a 900 m by 800 m area with tourmaline breccias.

ON MINING

  • Premier Gold Mines Ltd. Reported operating results for the third quarter 2019, including figures from its operations in Mexico. At Mercedes, in Sonora, 159.4 K tonnes were milled @ 2.94 gpt Au, 22.6 gpt Ag, recovering 95.9% Au, 32.3% Ag to produce 14,481 Oz Au, 37.5 K Oz Ag at co-product cash cost $1,095 per Oz Au, and co-product AISC $1,354 Oz Au.
  • Golden Minerals Co. announced financial results for the third quarter 2019. The company had revenue of US$1.9 M and a net operating margin of $1.3 M related to the lease of the Velardeña oxide plant to Hecla Mining Co.. By the end of the period the company had cash and cash equivalents of $2.9 M. During October an agreement was achieved with Magellan Gold Corp. to option a 100% interest in the Santa Maria and Las Marias exploration properties in Chihuahua.
  • Consolidated Zinc Ltd. signed and offtake agreement with Industrias Peñoles S.A. de C.V. for zinc concentrate produced from the Plomosas mine to December 2020, with an option to be extended for a further two years.
  • Starcore International Mines Ltd. released production results from its San Martin mine in Queretaro for the three months ended on October 31, 2019. During the period 54.1 K tonnes were milled @ 1.78 gpt Au, 34.2 gpt Ag, with a recovery of 87.35% Au, 52.27% Ag to produce 3,050 Oz AuEq.
  • Americas Gold and Silver Corp. reported consolidated and operational results for Q3 2019, with undisclosed figures from its Mexican operations (Cosalá, Sinaloa).
  • Sierra Metals Inc. reported third quarter 2019 results, including information from its Mexican operations. The company is approaching is production target of 4,250 tpd at Bolivar and 1,200 tpd at Cusi, both in Chihuahua. Bolivar’s cash cost per CuEq Lb was $1.40, and the AISC $2.53. Cusi’s cash cost was $18.77 and AISC $24.60. During the period 9,923 m were drilled from the surface at Bolivar, and 3,220 m within the Cusi mine. At the end of the period cash and cash equivalents were $40.1 M, with a net debt of $50.9 M.
  • Odyssey Marine Exploration Inc. reported results for the third quarter 2019. Net loss for the period was $4.2 M due to several non-recurring items (Exploraciones Oceánicas project, Baja California Sur).
  • Fortuna Silver Mines Inc. reported third quarter results for 2019, including figures from its Mexican operations. At San José, in Oaxaca, 268 K tonnes were milled at a rate of 3,046 tpd and a grade of 219 gpt Ag, 1.40 gpt Au, recovering 91% Ag, 91% Au to produce 1.7 M Oz Ag and 10,942 Oz Au at cash cost $7.70 per Oz AgEq and an AISC of $10.80 per Oz AgEq.

ON FINANCING

  • Tamino Minerals Inc. informed that during the third week of September the company traded 145 M shares with a volume of US $1.1 M and a price per share appreciation of US$0.01” (El Volcan, Sonora).
  • Mexican Gold Corp. has received TSX Venture Exchange approval for the listing of 50 M warrants from the non-brokered private placement announced in past July.
  • Colibri Resource Corp. has entered into a loan agreement with Agnico Eagle Mines Ltd. For proceeds of US$300 K. The loan has a 2 year term at a 10% interest rate and proceeds are to be used on the Evelyin project in Sonora.

ON RESOURCES AND DEVELOPMENT

  • Defiance Silver Corp. is to start a two-phase technical program at its San Acacio property in Zacatecas. The program envisages evaluating the San Acacio resource at depth and brownfield targets on the Veta Grande system.
  • Endeavour Silver Corp. reported positive initial drill results for El Curso property, adjacent to Endeavour’s Guanaceví mine in Durango. The property includes the Santacruz vein, which is between two Endeavour’s developments. Drilling highlights comprise true width (tw) intervals: 5.2 m @ 0.75 gpt Au, 465 gpt Ag; 2.6 m @ 1.23 gpt Au, 558 gpt Ag; 2.1 m @ 2.51 gpt Au, 935 gpt Ag; 2.5 m @ 0.40 gpt Au, 204 gpt Ag; 5.1 m @ 3.07 gpt Au, 1,182 gpt Ag (including 0.5 m @ 15.22 gpt Au, 5,372 gpt Ag); 4.3 m @ 2.2 gpt Au, 1,021 gpt Ag; 2.7 m @ 1.37 gpt Au, 355 gpt Ag; 6.2 m @ 1.70 gpt Au, 635 gpt Ag.
  • Industrias Peñoles S.A.B de C.V. is to invest US$70 M in its Met-Mex installations (in Torreon, Coahuila) to better the silver recovery in zinc concentrates. In 2018, the company commissioned a US$327 M modification on the plant that avoids the generation of additional sulphuric acid by direct concentrate leaching instead of roasting, augmenting the capacity from 240 K to 360 K tonnes of zinc.
  • SilverCrest Metals Inc. announced expansion drill results from the Babi Vista vein in the Babicanora area of the Las Chispas project in Sonora. The highlighted true width (tw) intervals from these 17 holes comprise: 2.3 m @ 2.27 gpt Au, 215 gpt Ag; 0.4 m @ 3.55 gpt Au, 385 gpt Ag; 0.9 m @ 4.86 gpt Au, 600 gpt Ag; 0.4 m @ 1.10 gpt Au, 187 gpt Ag; 0.6 m @ 1.09 gpt Au, 92 gpt Ag; 2.0 m @ 1.84 gpt Au, 433 gpt Au, 1.2 m @ 2.56 gpt Au, 296 gpt Ag; 8.8 m @ 7.36 gpt Au, 584 gpt Ag (including 0.3 m @ 120.50 gpt Au, 9,510 gpt Ag; 0.7 m @ 18.15 gpt Au, 1,495 gpt Ag); 6.6 m @ 3.37 gpt Au, 250 gpt Ag (including 0.4 m @ 32.70 gpt Au, 2,940 gpt Ag). So far the high-grade footprint is 150 m along the strike of the vein and 200 m to depth, open in most directions, averaging 2.2 m @ 4.70 gpt Au, 401 gpt Ag.
  • Bacanora Lithium plc. updated on project activities at its Sonora Lithium project. Final design work for the mine site, infrastructure, concentrator and kiln sections of the processing plant is in progress. Detailed engineering plans for the design of the front-end concentrator and mechanical processing is underway, as well as the pyrometallurgical engineering, while the hydrometallurgical plant, including the production of the final battery grade lithium product will be engineered by Ganfeng.

ON DEALS AND CORPORATE ISSUES

  • Evrim Resources Corp. signed an agreement with San Marco Resources to acquire the Suanse property in Sonora. The 1,115 hectares property is within Evrim’s Llano del Nogal claim. Evrim can acquire 100% interest in the project by making total cash payments of $75 K and granting San Marco a 1% royalty half of which can be repurchased for $1 M. Cash payments are: $25 K on signing, $25 K on signing a JV or partnership with third parties and $25 K upon completion of 1,000 m of drilling.
  • Colibri Resource Corp. granted a two-year extension to its agreement with Agnico Eagle Mines Ltd., allowing Agnico to exclusively explore opportunities to dispose of Colibri’s working interest in its JV on the 5,564 hectares Pitaya project in Sonora.

ON SOCIAL RESPONSIBILITY

  • The Peñoles Community Center (Centro Comunitario Peñoles) in Torreon, Coahuila, is conducting courses for children and adults, including English, music, drawing, tae kwon do, tae chi and modern dance and dance for weight reduction.
  • Ternium organizes the Health Festivals (Ferias de La Salud) in Nuevo Leon, Coahuila, Colima, Jalisco, Michoacan, Puebla and San Luis Potosi, in coordination with several organizations and government institutions. Each year almost 6,000 persons receive this benefit, including cost-free diverse medical examinations (like sight, Papanicolau, mamographies) and flu shots.
  • The La Colorada race was held in Sonora for the third time. The race sponsored by Argonaut Gold was attended by hundreds of runners on the benches of La Colorada mine.
  • The technical school Roberto Rocca (partly supported by Ternium) is to represent Mexico in the World’s Educative Robotics Tournament, to be held in Shanghai, China.
  • The “Doctor Vagón” program sponsored by the Grupo Mexico Foundation (a train adapted for medical services) was four days at Gomez Palacio, Durango, with the aid of the local municipality. During that time 2,200 services were provided to the 550 persons that registered to the effect.
  • In Topia, Durango, Minera La Brisa supported the municipality providing cleaning equipment.
  • Industrias Mineras Peñoles announced that to 2018 up to 35% of the energy requirements at its mining units is fulfilled by renewable energy sources. The company is striving to reach at least a 50% in 2020 and to be completely reliant on renewable energy sources by 2028.

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: Gold recovered by artisanal methods from orogenic style quartz veins in Oaxaca.. Picture by Jorge Cirett.

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The Mining and Exploration News in Mexico: Highlights on the Fifth Week of October, 2019

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IMG_0970 - copia

By Jorge Cirett

During the 44th week of the year (October 28th to November 3rd, 2019), at least 33 press releases were forwarde by companies working in Mexico. ON MEXICO ISSUES, The Morena party reassigned the Mining Fund, taking it away from its intended purpose of helping and developing mining communities. All big organizations related to mining in Mexico presented a petition to the president to rebuke the channelling of the Mining Fund away from its intended goal of helping mining communities. The governors of Sonora, Durango, Zacatecas and Guerrero sent a letter to the president of Mexico asking not to affect the communities by withdrawing the Mining Fund. On other matters, the AIMMGM informed mining companies expect to invest more than US$26 billion in six years. The illegal blockade on the Peñasquito mine in Zacatecas was lifted, with negotiations to continue shortly. The El Castillo mine access in Durango was illegally blocked for a few days, and then released, while negotiations proceed with community involved. ON EXPLORATION, in Sonora, Magna Gold informed it has two projects in the state, Mercedes near Yecora and San Judas, near Trincheras. In Chihuahua, Wealth Minerals negotiated surface access to its Valsequillo project. In Durango, Gainey Capital halted drilling activities while discussions with the local indigenous groups proceed.  ON MINING, Gold Resource, Consolidated Zinc, McEwen Mining, Santacruz Silver, Premier Gold, Torex Gold, Americas Silver and sierra Metals released third quarter 2019 production results. Telson Mining is to re-commence mining at Campo Morado in Guerrero. ON FINANCING, Goldplay Exploration filed an amended and restated condensed interim consolidated financial statement. Oroco Resource informed the exercising of warrants for $720 K. Starcore Interantional has resumed trading on the OTC Pink market. ON RESOURCES AND DEVELOPMENT, Pan American Silver released impressive results from 14,300 m of drilling at its La Colorada mine in Zacatecas. Mexican Gold Corp updated on its current drilling program at Las Minas, Veracruz. ON DEALS AND CORPORATE ISSUES, Telson Mining is to re-start mining at Campo Morado, in Guerrero, under a notice of default and demand for payment by Nyrstar. Prime Mining signed a public relations contract with Brisco Capital Partners. Oceanus is using now a service for virtual tours on remote locations. Santacruz and Peñoles extended a lease agreement on the Zimapan mine in Hidalgo. Almaden Minerals was informed by SEMARNAT that the permitting process for its Ixtaca mine in Puebla is suspended until a judicial resolution is reached (the head of the institution is openly against open pit mining).  ON SOCIAL RESPONSIBILITY. Alamos Gold reunited all the students under its scholarship program in three venues, Matarachi, Sahuaripa and Hermosillo.

ON MEXICO ISSUES

  • Last week the Morena party majority reassigned the Mining Fund (Fondo para el Desarrollo Regional Sustentable de Estados y Municipios Mineros) to education spending.  The fund is gathered on a 7% (increased to 7.5% in gold and silver) royalties on extracted minerals implemented in 2014 to aid with the infrastructure, health, education and sustainability of mining communities.
  • The Asociación de Ingenieros de Minas, Metalurgistas y Geólogos de México (AIMMGM) informed that mining companies expect to invest more than US$26 billion in six years. If such investments come to be realized, 50 thousand direct jobs and 274 thousand indirect jobs could be generated, and mining companies would pay an additional 23,500 million in taxes. Just last year the industry paid 46,159 million pesos on income tax (Impuesto sobre la renta, ISR).
  • On October 26th, the Zacatecas governor Alejandro Tello informed that security forces are inviting the group that (illegally) blocks the entrance to the Peñasquito mine to leave the site. The governor also informed that a number of the blockers might be pursued judicially, some by the state and some by the federal government. He stated that he’s is been in contact with the sub secretary of the interior (Subsecretario de Gobernación), with whom also the company executives, communal farmers (ejidatarios) and the state government have been in dialogue rounds.
  • The Cámara Minera de México (CAMIMEX), the Grupo de Minería de la Cámara de Comercio de Canadá, the Asociación de Ingenieros de Minas, Metalurgistas y Geológos de México, the organization in mining Mujeres WIM de México and the Colegio de Ingenieros de Minas, Metalurgistas y Geólogos de México received with great worry de Senate decision to approve an unjust redistribution of the Mining Fund (Fondo Minero), braking the spirit on which the fund was created to benefit mining communities. The priority for the sector is that the resources reach the communities and municipalities where they were generated, contributing with independent actions by mining companies to the social welfare and community development in areas away from urban centers, aiding to reach greater life quality, development and wellbeing. Miners are appalled by the Congress decision, same that dismissed petitions by state governors, municipality presidents, from the industry and mining communities to guarantee the return of funds to these localities. A strong and respectful call is made to the authorities to reconsider the distribution methodology for the resources and operational rules of the fund, where it should be clearly established that these funds are to be funnelled exclusively to mining communities, municipalities and states. The mining industry refresh its compromise to continue to be an agent of change, a block that forwards sustainability practices and is and active player that contributes to a greater well-being for thousands of miner families and millions of Mexicans. We consider ourselves as the best federal government ally to achieve the more valuable social objectives sought by new government project. The Camara Minera de Mexico is the first camera of industries formed in the country, representing the interests of the mining-metallurgical industry in the country.
  • Argonaut Gold Inc. informed on an illegal blockade at its El Castillo mine in Durango. The Company has a legal and binding agreement in place with Atotonilco ejido that was signed and recognized by both the Atotonilco ejido and the Mexican government in 2012 and runs through 2022. The blockade lifting was announced on October 30, with an agreement with the ejido pending to be ratified on November 11.
  • Newmont Goldcorp confirmed that free access to its Peñasquito installations in  Zacatecas is complete as of last Sunday (Oct. 27). Access to the mine had been blocked by a small group of communal agriculture workers (ejidatarios) and truckdrivers. The company is to restart the social investment programmes in the next few days, and expects to initiate on November 19 the new program “Juntos Dejamos Legado”, which aims to support schools and sport activities in 25 nearby communities. The ending of the blockade was achieved with government executives having dialog with the blockers, with the presence of the national guard (Guardia Nacional) and the state police (Policía Estatal Preventiva), stressing that further negotiations were to proceed only without the blockade in place.
  • The governors of Sonora, Claudia Pavlovich; Zacatecas, Alejandro Tello; Durango, José Rosas, and Guerrero, Héctor Astudillo, sent a letter to the president of México asking not to affect the communities by withdrawing the mining fund.

ON EXPLORATION

  • Gainey Capital Corp. temporarily halted all drilling activities at its Las Margaritas property in Durango, following discussions with the local indigenous groups (Las Margaritas, Durango).
  • Magna Gold Corp. informed it has two projects in Sonora. The flagship 1,239 ha Mercedes project in Yecora, and the recently acquired San Judas project in Trincheras.
  • Wealth Minerals Ltd. successfully negotiated surface access rights to its Valsequillo property in Chihuahua. The company has an option to acquire 100% interest in the 2,840 ha property. Past artisanal mining activity concentrated on a number of epithermal, Zn-Pb-Cu-Ag veins, stockworks and silicified zones concentrated within two NW trending corridors. Rock sample results of up to 2.68 gpt Au, 629 gpt Ag, 9.5% Cu, 16.5% Pb, 6.4% Zn have been obtained.

ON MINING

  • Telson Mining Corp. announced the recommence of mining operations at its Campo Morado mine in Guerrero. This is the result of improved relations with the local community and a better zinc price. The company anticipates initiating full mining activities and processing operations near the beginning of December 2019.
  • Argonaut Gold Inc. informed on an illegal blockade at its El Castillo mine in Durango. The Company has a legal and binding agreement in place with Atotonilco ejido that was signed and recognized by both the Atotonilco ejido and the Mexican government in 2012 and runs through 2022.
  • Gold Resource Corp. reported gold production for the third quarter of 2019, including figures from its Oaxaca Mining Unit. The Arista mine milled 163.3 K tonnes @ 1.76 gpt Au, 85 gpt Ag, 0.39% Cu, 1.9% Pb, 4.7% Zn; the Aguila open pit mine milled 3.6 K tonnes @ 1.49 gpt Au, 58 gpt Ag; the Mirador mine milled 11.7 K tonnes @ 0.76 gpt Au, 197 gpt Ag. In total, 178.6 K tonnes were milled at a rate of 2,007 tonnes per day, to produce 7,462 Oz Au, 473.8 K Oz Ag, 492 tonnes Cu, 2,459 tonnes Pb, 6,057 tonnes Zn. Total cash cost after by-product credits was $197 per AuEq ounce and total all-in sustaining cost was $520 per AuEq ounce for the period.
  • Consolidated Zinc Ltd. released its third quarter 2019 activities report. The acquisition of the Plomosas mine in Chihuahua was completed, getting the remaining 10% ownership in exchange for a 1% NSR royalty. During the quarter 7,511 tonnes were mined @ 13.5% Zn, 8.2% Pb, and 9,120 tonnes were processed @ 12.5% Zn, 7.9% Pb.
  • McEwen Mining Inc. presented its third quarter 2019 report, including activities at its El Gallo mine in Mexico. During the third quarter the mine produced 3,057 Oz AuEq from residual leaching, at cash cost $1,153 and $1,177 AISC per Oz AuEq. Work on the Fenix Project feasibility study and permitting is progressing.
  • Pan American Silver Corp. released results from 14,300 m of drilling during the third quarter 2019 on its La Colorada mine in Zacatecas (see Resources and Development section) .
  • Santacruz Silver Mining Ltd. reported its third quarter 2019 production. Consolidated production was 956.5 K Oz AgEq. At Zimapan, in Hidalgo, 82.2 K tonnes were processed @ 75 gpt Ag, 0.59% Pb, 2.28% Zn, 0.48% Cu to produce 151.5 K Oz Ag (75% recovery), 463 tonnes Pb, 1,492 tonnes Zn, 316 tonnes Cu. At Veta Grande, in Zacatecas, 44 K tonnes were processed @ 99 gpt Ag, 0.24 gpt Au, 1.45% Pb, 2.11% Zn to produce 62.4 K Oz Ag (45% recovery), 139 Oz Au, 370 tonnes Pb, 519 tonnes Zn. At Rosario, in San Luis Potosi, 22 K tonnes were processed @ 65 gpt Ag, 0.25 gpt Au, 0.40% Pb, 2.04% Zn to produce 43 K Oz Ag (93% recovery).
  • Premier Gold Mines Ltd. announced Q3 2019 production results, including 14,481 Oz Au and 37.5 K Oz Ag from its Mexican operations at Mercedes, in Sonora.
  • Torex Gold Resources Inc. reported third quarter 2019 results. At its El Limon-Guajes mine in Guerrero, the company produced 138,145 Oz Au, mine production averaged 144,989 tonnes per day (tpd), mine ore production averaged 15,391 tpd @ 3.19 gpt Au, with a plant throughput of 12,380 tpd @ 4.11 gpt Au, recovering 89% Au at cash cost $561 and AISC of $675.
  • Americas Gold and Silver Corp. released third quarter 2019 production results, including figures from its Cosalá operations in Sinaloa. At the site 151.2 K tonnes were milled to produce 128.8 K Oz Ag, 10.1 M Lb Zn, 3.7 M Lb Pb (or 1 M Oz AgEq), at cash cost -$10.82 per Oz Ag, and an AISC of -$1.49 per Oz Ag after sub-product credits.
  • Sierra Metals Inc. reported its Q3-2019 financial results, not including figures from its operations in Mexico. The company had $29.0 M of cash and cash equivalents at the end of the period (Bolivar, Chihuahua).

ON FINANCING

  • Goldplay Exploration Ltd. filed an amended and restated condensed interim consolidated financial statement and management discussion and analysis for the six months ended June 30, 2019, adding the following disclosure “in Note 11 – Related Party Transactions; The Company issued 480,000 common shares valued at $60,000 as debt settlement with officers and a director of the Company and in Note 12 – Share Capital and Reserves; the Company issued 600,000 common shares valued at $75,000 as debt settlement including $60,000 to related parties” (San Marcial, Sinaloa).
  • Oroco Resource Corp. informed that warrant holders from a unit offering completed on April 2018 have fully exercised the purchase warrants providing the company $720 K (Santo Tomás, Sinaloa).
  • Starcore International Mines Ltd. announced it has resumed trading on the OTC Pink markets in USA under the symbol “SHVLF” (San Martin, Queretaro).

ON RESOURCES AND DEVELOPMENT

  • Pan American Silver Corp. released results (impressive) from 14,300 m of drilling during the third quarter on the La Colorada skarn discovery in Zacatecas. Drill highlights comprise 250.9 m @ 40 gpt Ag, 0.08% Cu, 2.6% Pb, 3.4% Zn (including 78.9 m @ 60 gpt Ag, 0.09% Cu, 3.9% Pb, 4.8% Zn); 72.3 m @ 37 gpt Ag, 0.16% Cu, 3.8% Pb, 6.3% Zn and 56.6 m @ 39 gpt Ag, 0.10% Cu, 3.3% Pb, 6.6% Zn; 124.8 m @ 42 gpt Ag, 0.08% Cu, 2.4% Pb, 3.1% Zn; 252.9 m @ 67 gpt Ag, 0.19% Cu, 3.8% Pb, 6.6% Zn (including 27.3 m @ 108 gpt Ag, 0.20% Cu, 8.1% Pb, 13.7% Zn and 148.6 m @ 81 gpt Ag, 0.23% Cu, 4.4% Pb, 7.7% Zn); 132.5 m @ 56 gpt Ag, 0.19% Cu, 3.8% Pb, 6.3% Zn and 139.2 m @ 54 gpt Ag, 0.15% Cu, 1.8% Pb, 5.9% Zn; 379.0 m @ 54 gpt Ag, 0.50% Cu, 2.0% Pb, 3.7% Zn (including 66.7 m @ 154 gpt Ag, 2.07% Cu, 1.0% Pb, 1.6% Zn).
  • Mexican Gold Corp. updated on its current drill program at its Las Minas project in Veracruz. To date 655 m have been drilled on five holes, with three holes testing El Dorado zone, another 261 m hole tested an electromagnetic anomaly, while the hole currently being drilled is also testing a 350 m extension of the same anomaly.

ON DEALS AND CORPORATE ISSUES

  • Telson Mining Corp. informed that as a result of suspending operations at Campo Morado in August 2019 under force majeur conditions, Telson has been without cash flows resulting in non-payment under the loan agreement with Nyrstar Holdings Ltd. This has resulted in Nyrstar issuing a notice of default and demand for payment. Telson’s outstanding debt under this loan agreement including principal and interest is approximately US$6 M. Telson expects to be able to recommence outstanding payments to Nyrstar while exploring other financing alternatives.
  • Prime Mining Corp. entered into contractual agreements for marketing, advertising, shareholder engagement and social media communications with Brisco Capital Partners Corp. for a monthly retainer for a minimum of a CDN$10 K and a maximum of CDN$50 K (Guadalupe de Los Reyes, Sinaloa).
  • Oceanus Resources Corp. announced that is now live on VRIFY, a platform being used by companies to communicate with investors using virtual tours of remote mining assets, 3D models and interactive presentations (El Tigre, Sonora).
  • Santacruz Silver Mining Ltd. and Peñoles, each by mean of a subsidiary, extended the Zimapan mine lease agreement from December 31,2019 to December 31, 2020. Santacruz must make monthly payments to Peñoles based on a 4% NSR, subject to a minimum US$45 K and a maximum of US$60 K per month. The extension provides more time for the negotiation of terms of a potential acquisition of the Zimapan mine in Hidalgo.
  • Almaden Minerals Ltd. was notified by SEMARNAT (Mexico’s environmental authority) that the permitting process for the Ixtaca project in Puebla has been suspended pending resolution of a mineral title lawsuit previously reported. “Under the Lawsuit, certain organisations have supported legal challenges against the Government of Mexico and the Mexican mineral title regime using the Company’s mineral claims as a basis for their challenges. The Lawsuit contends that the issuance of Almaden’s original mineral titles violated human rights and did not respect Mexico’s commitment to indigenous consultation under United Nations Instrument ILO 169…… o. In April, 2019, a Lower Court in Puebla State ruled that the Mexican mineral title system is unconstitutional and as a result these original mineral claims should be held exclusively for Almaden until such time as consultation can be completed. This Lower Court decision has now been appealed by the Mexican Congress, Senate, Secretary of Economy and Mining authorities, as well as Almaden as an affected party. The Lawsuit remains before the Courts”. SEMARNAT was informed on October 24 that the company completed the necessary steps to abandon its mineral claims in the area of the complaint in 2017.
  • Bacanora Lithium is using Veolia Water Technologies Division with its HPD evaporation and crystallisation technologies to validate Bacanora Lithium’s product purity requirements at the Sonor lithium project, while removing potassium and converting it into a sub-product. Veolia engineered and designed the production process that recovers lithium carbonate and sulphate of potash from clay deposits.

ON SOCIAL RESPONSIBILITY

  • Minas de Oro Nacional (Alamos Gold) reunited in Matarachi, Sahuaripa and Hermosillo (Sonora) all the 185 students currently receiving scholarships to study in Matarachi, Sahuaripa, Arivechi, Chihuahua, Cuahutémoc and San Luis Rio Colorado. The ceremony in Hermosillo was held with company and state executives, including the state governor, the Mining Director, the director of DIF, the director of the Sonora Mining Cluster, the director of the Miners Association of Sonora and the SEC sub-secretary of Basic Education.

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: Gneiss hosted quartz veinlet from a project in Oaxaca. Picture by Jorge Cirett.

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The Mining and Exploration News in Mexico: Highlights on the Fourth Week of October, 2019.

/ gambusinoprospectormexico / Leave a comment

 

barite crystals

By Miguel A Heredia

During the forty-three week of the year (October 21st to October 27th, 2019), at least 42 press releases were announced by companies working in Mexico, with eleven disclosing deals and corporate issues, ten announcing financial rounds, seven commenting on Mexican issues, six informing on exploration results, three communicating production results, three reporting on resources and developments of their projects, and one discussing issues on social responsibility.  ON MEXICO ISSUES, Napoleón Gómez Urrutia, a mining union leader and senator for the Morena party proposed to increase the taxes to mining concessions to levels of 20-30%.  Fernando Alanís, president of the Cámara Minera de México (CAMIMEX), reported that 244 Canadian companies stopped investing in Mexico. At the AIMMGM Mining convention in Acapulco, the CONAGO (Conferencia Nacional de Gobernadores) and the federal government were at disagreement on the use of the Mining Fund. Camimex expects the “Mesa de Minería” (Mining Forum) is installed before year’s end. Newmont-Goldcorp re-started up production at its Peñasquito mine in Zacatecas. ON EXPLORATION, In Baja California Norte, One World Lithium announced the continuation and progress of the phase 3 drilling program at its Salar del Diablo project.   In Sonora, Aloro mobilized crews to sample high grade Au veins on the northwest side of its Los Venados project, and Agnico Eagle provided an exploration update of its Santa Gertrudis project. In Chihuahua, Radius Gold and Pan American Silver commenced the phase 3 drilling program at its Amalia project. In Zacatecas, Galore reported the completion of 1,667.20m of core drilling at its Dos Santos project.  In Jalisco, GoGold reported drill results from six new holes from its Los Ricos project. ON MINING, Agnico Eagle, Fresnillo, and Excellon reported Q3, 2019 production and financial results from their Mexican operations. ON FINANCING, Galore closed a first tranche of a private placement for gross proceeds of CAD $187K and implemented a shares for services agreement on its drill contract (Dos Santos project, Zacatecas). One World Lithium reported that its previously announced non-brokered private placement (Sept 05, 2019), will be replaced by a non-brokered private placement for gross proceeds of $1M (Salar del Diablo project, Baja California Norte).  VVC closed a non-brokered private placement for gross proceeds of CAD $2M (Kaity project in Samalayuca, Chihuahua). Silver Viper closed a private placement financing to raise gross proceeds for $4M (La Virginia project, Sonora). Orla entered into a commitment letter for up to USD $125M project finance facility (Camino Rojo project, Zacatecas). Vista Gold received the third option payment from Prime Mining for the Guadalupe de Los Reyes property in Sinaloa. Newmont-Goldcorp declared a quarterly dividend of $0.14 per share of common stock (Peñasquito mine, Zacatecas). Gold Resource increased 100% its instituted annual dividend from $0.02 to $0.04 per common share (Arista mine, Oaxaca). ON RESOURCES AND DEVELOPMENT, Golden Minerals outlined progress at its Velardeña and Rodeo properties in Durango. Minera Peñoles informed that is to start operations at its Capela mine in Guerrero. Endeavour reported infill drill results from its Parral project in Chihuahua.  ON DEALS AND CORPORATE ISSUES, Alien Metals appointed Novum Securities Ltd as its joint corporate broker with immediate effect (San Celso project, Zacatecas). Defiance Silver appointed a couple of OreQuest consultants as technical advisors to work on its San Acacio project in Zacatecas. Impact granted stock options to directors, officers, and employees (Zacualpan mining district, State of Mexico).   Oroco announced special general meeting of its shareholders to be held on December 19, 2019 (Santo Tomas project, Sinaloa). Vangold announced changes on its board of Directors and appointed its corporate secretary (El Pinguino mine, Guanajuato). Tamino Minerals was invited to list on the Mexican Stock Exchange (El Volcan project, Sonora). Torex responded a recent letter to its shareholders and stakeholders (Limon-Guajes, Guerrero). Sonoro advanced discussions with China-based companies to develop and finance its Cerro Caliche project in Sonora. Magellan entered into an option agreement with Golden Minerals to acquire 100% interest in Santa Maria project in Chihuahua. Santacruz Silver appointed a new director to its Board (Veta Grande, Zacatecas). Ternium received from PROFEPA, the certification as a clean industry (Tecomán plant in Colima).  ON SOCIAL RESPONSIBILITY, In Aconchi, Sonora, the Orquesta La Caridad from Grupo Mexico offered a concert to 250 attendees by 110 children and young people, the first on its Rio Sonora tour. Doctor Vagón, the Health Train of Fundación Grupo México, arrived in San Pedro, Coahuila from October 23 to 26 to give medical attention to the residents of the municipality.

ON MEXICO ISSUES

  • Napoleón Gómez Urrutia, a mining union lider and senator by Morena proposed to increase the taxes to mining concessions to levels of 20 to 30%, sustaining that countries like Peru, Bolivia or Chile are at those levels. That declaration was done while he was defending the federal government intention to use the Mining Fund to other means that what it was imposed for: helping develop mining communities. The leader of the Morena senators is to present an integral initiative for the mining sector. Why don’t we raise the taxes to mining, to the rights on mineral exploitation, to the mining concessions taxes?, asked Gómez Urrutia. Ricardo Monreal, a presidential hopeful considered the proposal to be correct, and asked for its formalization.
  • Fernando Alanís, Camimex (Cámara Minera de México) president said that 244 Canadian companies stopped investing in Mexico. Camimex is fighting for the 100% deductibility of exploration expenses, as it is a strong deterrent on exploration investment, where the most risk of the industry is concentrated.
  • At the AIMMGM Mining convention in Acapulco, the CONAGO (Conferencia Nacional de Gobernadores) and the federal government were at disagreement on the use of the Mining Fund. While the governors fight for the said funds to remain on the states and municipalities, the federal government proposed that 85% of the resources are directed to the Secretaria de Educación Pública (SEP), by reforming the Ley Federal de Derechos (Federal Law on Duties) starting on 2020. The federal proposal allows full discretionally use of the where the funds are used, even in areas where no mining is conducted. In 2018 alone, $3,840 M pesos (about US$202 M) were accrued on the Mining Fund.
  • Camimex expects the “Mesa de Minería” (Mining Forum) is installed before year’s end, and can start to work with the federal government, so the mining sector is heard and doubts and misunderstandings can be cleared. Subjects to address include the social, the environment, regulation of the investment compromise, and the fiscal issues. Camimex stressed the mining in Mexico pays about 46 percent in taxes.
  • Newmont-Goldcorp, re-started up production at its Peñasquito mine in Zacatecas, following the lifting of the illegal blockade on October 8, 2019. “With the support of the State and Federal governments, including an ongoing police presence, the Company has commenced an approximately 10-dayprocess of bringing back the operation to full production”.

ON EXPLORATION

  • One World Lithium Inc., announced the continuation of the phase 3 drilling program at its Salar del Diablo project in Baja California Norte. Four boreholes are planned for a total of 2,400 meters (about 8,000 feet) of exploration drilling. The company reported that the first borehole reached a depth of 220m. Target depths of up to 600 meters are expected to be achieved.
  • Aloro Mining Corp., is to sample high-grade gold veins on the northwest of the Los Venados property in Sonora. In this area lies a 3.5 km vein system up to 400 m in width that has been partially mapped. Results from early sampling have results of up to 32 g/t Au and 49 g/t Ag.
  • Agnico Eagle Mines Limited, provided an update of the exploration program carried out at its Santa Gertrudis project in Sonora. Drilling at Santa Gertrudis has extended the Amelia deposit in the Trinidad zone to 800m strike length, with highlight intercepts of 6.4 g/t Au over 7m and 9.6 g/t Au over 6m.
  • Radius Gold Inc., and Pan American Silver Corp., commenced the phase 3 drilling program at its Amalia project in Chihuahua. Pan American is now operating the project and expects to drill a minimum 2,500m of core drilling.
  • Galore Resources Inc., reported the completion of 1.667.20m of core drilling at its Dos Santos project in Zacatecas. Drilling results are still pending to be released.
  • GoGold Resources Inc., reported results from six new diamond drill holes including four from the San Juan zone, the first step out hole testing the El Troce area, and one from the Main area at its Los Ricos project in Jalisco. At San Juan, hole LRGG-19-050 intersected 0.39 g/t Au and 76 g/t Ag (1.41 g/t AuEq) over 45.3m, including 1.01 g/t Au and 242 g/t Ag (4.23 g/t AuEq) over 6.2m,and hole LRGG-19-051 intersected 0.4 g/t Au and 86 g/t Ag (1.55 g/t AuEq) over 24m. At El Troce, hole LRGG-19-053 intersected 1.53 g/t Au and 164 g/t Ag (3.72 g/t AuEq) over 10.1m, including 5.22 g/t Au and 489 g/t Ag (11.75 g/t AuEq) over 2.8m. At the Main area, hole LRGG-19-055 intersected 0.58 g/t Au and 75 g/t Ag (1.59 g/t AuEq) over 14.4m.

ON MINING

  • Agnico Eagle Mines Limited, reported Q3, 2019 production and financial results from their Mexican operations. At Pinos Altos mine, Chihuahua, it processed 519K tonnes of 2.22 g/t Au to produce 34.8K Oz Au at a total cash cost of USD $745 per Oz Au produced. At Creston Mascota mine in Chihuahua, the company processed 284K tonnes of 0.78 g/t Au to produce 9,596 Oz Au at a total cash cost of USD $668 per Oz Au produced. At La India mine, Sonora, Agnico processed 1.1M tonnes of 0.77 g/t Au to produce 18.4K Oz Au at a total cash cost of USD $872 per Oz Au produced.
  • Fresnillo plc, presented Q3 2019 production results from their Mexican operations. Consolidated production results for the Q3, 2019 reached 13.3M Oz Ag (including Silverstream for 659K Oz Ag), 209.7K Oz Au, 34.9M Lb Pb, and 56.8M Lb Zn. At Fresnillo mine, Zacatecas, the company processed 648,646 tonnes of 183 g/t Ag, 0.99 g/t Au, 1.24% Pb, and 2.14% Zn, to produce 3.4M Oz Ag, 15.6K Oz Au, 15.8M Lb Pb, and 22.9M Lb Zn. At Saucito mine, Zacatecas, it processed 703K tonnes of 207 g/t Ag, 1.22 g/t Au, 0.84% Pb, and 1.38% Zn, to produce 4M Oz Ag, 21K Oz Au, 11M Lb Pb, and 14.9M Lb Zn. At Pyrites Plant, Fresnillo processed 38,572 tonnes of 314 g/t Ag and 2.44 g/t Au, to produce 285K Oz Ag and 954 Oz Au. At Cienega mine, Durango, it processed 335,493 tonnes of 1.78 g/t Au, 151 g/t Ag, 0.81% Pb, and 1.35% Zn, to produce 17.8K Oz Au, 1.4M Oz Ag, 4.1M Lb Pb, and 6.2M Lb Zn. At San Julian mine in Chihuahua-Durango border, the company processed 321,798 tonnes of 1.39 g/t Au and 108 g/t Ag, to produce 13,711 Oz Au and 1M Oz Ag from veins, and 559,693 tonnes of 0.07 g/t Au, 130 g/t Ag, 0.41% Pb, and 1.35% Zn, to produce 523 Oz Au, 2M Oz Ag, 4M Lb Pb, and 12.8M LB Zn from the disseminated ore body. At the Herradura mine, Sonora, Fresnillo processed 5,591,746 tonnes of 0.71 g/t Au and 3 g/t Ag, to produce 102,439 Oz Au and 412K Oz Ag. At the Noche Buena mine, Sonora, it processed 3,215,167 tonnes for a total volume hauled of 11,447,273 tonnes with grades of 0.58 g/t Au and 0.25 g/t Ag to produce 37,570 Oz Au and 14K Oz Ag.
  • Excellon Resources Inc., announced Q3, 2019 production results from its Platosas mine, Durango. Excellon milled and processed 17,235 tonnes of 512 g/t Ag, 4.4% Pb, and 6% Zn to produce 257.5K Oz Ag, 1.3M Lb Pb, and 1.65M Lb Zn, with metallurgical recoveries of 87.2%, 77.7%, and 76.5% respectively.

ON FINANCING

  • Galore Resources Inc., closed a first tranche of a private placement for gross proceeds of CAD $187K.The company also implemented a cash + shares for services agreement with COMEFIN S DE RL DE CV, to conduct the diamond core drilling programs at Galore’s 100% owned El Alamo and Los Gemelos projects (Dos Santo project, Zacatecas).
  • One World Lithium Inc., reported that its previously announced non-brokered private placement (Sept 05, 2019), will be replaced by a non-brokered private placement of unsecured convertible notes for gross proceeds of $1M (Salar del Diablo project, Baja California Norte).
  • VVC Exploration Corporation, closed a non-brokered private placement for gross proceeds of CAD $2M. The proceeds of the Financing will be used for exploration and development on the Kaity Property in Mexico, including diamond drilling, land use permits and associated costs, metallurgical bench testing of the copper mineralization, and investigation, evaluation and implementation of the Gloria Pilot Mining Project (Kaity project in Samalayuca, Chihuahua).
  • Silver Viper Minerals Corp., closed a private placement financing to raise gross proceeds for $4M. Net proceeds will be used to continue exploration and development of its La Virginia Au-Ag in Sonora and for general corporate and working capital purposes.
  • Orla Mining Ltd., entered into a commitment letter with Trinity Capital Partners Corporation, with respect to a secured project finance facility of USD $125M for the development of its Camino Rojo project in Zacatecas.
  • Vista GoldCorp., received the third $1.5M option payment from Prime Mining Corporation for the Guadalupe de Los Reyes project in Sinaloa.
  • Newmont-Goldcorp, declared a quarterly dividend of $0.14 per share of common stock, payable on December 27, 2019 to holders of record at the close of business on December 5, 2019.
  • Gold Resource Corporation, announced it has increased 100% its instituted annual dividend from $0.02 to $0.04 per common share. This increases the monthly dividend to one-third of a cent per common share for October 2019 payable on November 25, 2019 to shareholders of record as of November 12, 2019 (Arista mine, Oaxaca).

ON RESOURCES AND DEVELOPMENT

  • Golden Minerals Co. informed it is working on a new PEA on its Velardeña properties in Durango, to reflect better metal prices and new metallurgical processes. At Rodeo, also in Durango, Golden plans to initiate a small drilling program to provide better definition on its 46 K Oz Au resource. At Yoquivo, in Chihuahua, Golden has the permits to initiate a drill program to test several epithermal veins early in 2020.
  • Minera Peñoles informed that is to start operations at its Capela mine in Guerrero. The Capela mine is a US$340 M investment that is to generate 1,000 direct jobs and at least 1,400 indirect ones. Mining generates more than 10 thousand direct jobs and 50 thousand indirect jobs, making it the second most relevant economic activity in the state.
  • Endeavour Silver Corp., reported infill drill results from 10 underground holes collared on the Veta Colorada vein at its Parral project in Chihuahua. Every hole intersected strong Ag mineralization below the lowest mine level. Recent drilling highlights include 308 g/t Ag over 11.6 m true width n hole VCU-16. “Several drill holes intersected two mineralized zones, the Veta Colorada and the HW Veta Colorada in the hanging wall, with a total true width of mineralization up to 16.5 m in hole VCU-17, with 226 g/t Ag over 7.6m true width, including 593 g/t Ag over 0.5m true width, and 254 g/t Ag over 8.9m true width, including 1,355 g/t Ag over 0.5m true width”.

ON DEALS AND CORPORATE ISSUES

  • Alien Metals Ltd., appointed Novum Securities Ltd as its joint corporate broker with immediate effect (San Celso project, Zacatecas).
  • Defiance Silver Corp., appointed a couple of OreQuest consultants as technical advisors to execute the ongoing exploration program at its san Acacio project in Zacatecas.
  • Impact Silver Corp., granted stock options to directors, officers, and employees for the purchase of 2M shares in its capital at the above market price of $0.36 per share (Zacualpan mining district, State of Mexico).
  • Oroco Resources Corp., announced that its special general meeting for shareholders will be held on December 19, 2019 to consider and vote on a resolution to approve the Company’s option to acquire Altamura Copper Corp.(Santo Tomas project, Sinaloa).
  • Vangold Mining Gold, informed about changes on its Board of Directors and expanded the role in the company of its CFO to become in its corporate secretary (El Pinguico mine, Guanajuato).
  • Tamino Minerals, has been invited to list on the Mexican Stock Exchange. If Tamino can achieve the listing, it may have a solution to combat its shortage of investment capital and advance their exploration projects (El Volcan, Sonora).
  • Torex Gold Resources Inc, responded a recent letter to its shareholders and stakeholders to confirm its long-term strategy to develop a sustainable, multi-asset, mining business by executing operationally to generate strong free cash flow from its Limon-Guajes mine in Guerrero, de-risking and bringing Media Luna project, Guerrero into production, and delivering the full potential of its innovative Muckahi Mining System to the benefit of all Torex shareholders.
  • Sonoro Metals Corp., continued advancing its discussions with China-based engineering, procurement and construction companies regarding plans to develop and finance a proposed heap leach pilot operation for its Cerro Caliche project in Sonora.
  • Magellan Gold Corp., entered into an option agreement with Golden Minerals Company to acquire 100% interest in the Santa Maria project in Chihuahua by making a cash payment of USD $1M to Golden at closing, and pay Golden a 6.5% NSR based royalty from all production until a total of USD $3M has been paid under the royalty agreement, the royalty is then reduced to a 3.0% NSR based royalty for the balance of the property life.
  • Santacruz Silver Mining Ltd., appointed a new director to its Board (Veta Grande, Zacatecas).
  • Ternium, received from PROFEPA, a certification as a clean industry for the 6th consecutive year, established by the Mexican Standard, NMX-AA-162-SCFI 2012, Regulation of the General Law of Ecological Balance and the Protection of the Environment in matters of Self-Regulation and Environmental Audits. The certification was granted to the Alzada pelletizing plant and Tecomán station, both located in Colima.

ON SOCIAL RESPONSIBILITY

  • In Aconchi, Sonora, the Orquesta La Caridad from Grupo Mexico offered a concert to 250 attendees by 110 children and young people from Nacozari, the first on its Rio Sonora tour.
  • Doctor Vagón, the Health Train of Fundación Grupo México, arrived in San Pedro, Coahuila from October 23 to 26 to give medical attention to the residents of the municipality. The Health Train will offer general consultations, dermatology, pediatrics, dentistry, chiropractic and physical rehabilitation, Comprehensive service for women (mastography, colposcopy), comprehensive diabetic patient clinic, comprehensive service for women, nutrition, psychology, optometry, family planning, geriatrics, audiometry, laboratory tests and cabinet studies, all for free.

 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, barite crystals in a rhyolite tuff from a prospect in Chihuahua, Mexico.  Photo by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the Third Week of October, 2019

/ Gambusino Prospector / Leave a comment

IMG_2620 - copia

By Jorge Cirett

During the 42nd week of the year (October 14th to October 20th, 2019), at least 29 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, The Congress dominated by Morena approved a bill dramatically changing the rules od operation of the Mining Fund for 2020 . ON EXPLORATION, in Sonora, Magna Gold released drilling results for its Mercedes project, and announced new exploration targets. In Sinaloa, Oroco Resource commenced work at the Santo Tomas project. In Durango, Gainey Capital commenced drilling at Las Margaritas. In Veracruz, Azucar Minerals discovered another mineralized center at El Cobre.  ON MINING, Sierra Metals, Fortuna Silver, Avino Silver, Gold Resource and McEwen Mining released third quarter 2019 production results. Argonaut Gold reported an accident that resulted in the death of two contractor’s employees at La Colorada, in Sonora. ON FINANCING, Kootenay Silver closed a $2 M private placement. Gainey Capital granted options to directors, officers, employees and consultants. Candelaria Mining discontinued a private placement due to unfavorable market conditions. ON RESOURCES AND DEVELOPMENT, SilverCrest Metals reported development mining sampling has returned less tonnage but more AgEq ounces at its Las Chispas property in Sonora. Azure minerals is planning a two-stage drill program at the Loma Bonita gold target of its Alacran property in Sonora. ON DEALS AND CORPORATE ISSUES, Tamino Minerals elaborated on the company’s history and incoming work at its El Volcan project in Sonora. Bacanora Lithium presented the current situation of Ganfeng’s investment on the company. Megastar Development entered into an option agreement regarding the Cerro Minas concession in Oaxaca. Riverside Resources released information on its BHP financing agreement for generative copper exploration in NW Sonora. Golden Minerals entered into an option agreement with Magellan Gold to sell its interest in the Santa Maria project in Chihuahua. ON SOCIAL RESPONSIBILITY. The Grupo Mexico Foundation donates 175 K trees in Queretaro. Ternium granted scholarships to 145 students. Esperanza Silver presented a sustainable project in Morelos.

ON MEXICO ISSUES

  • The Camara de Diputados (Deputies Chamber, or Congress) approved legal reforms concerning the use of the Mining Fund. The changes were approved only by the Morena party and allied members, taking away the planning and overseeing of funds (generated by a special tax on mining) from local mining municipalities, enforcing what is seen as federal discretional use.

ON EXPLORATION

  • Gainey Capital Corp. commenced a diamond drilling campaign at the Las Margaritas project in Durango. This initial phase comprises 1,080 m of drilling in 11 holes focused on the best mineralization exposed at the surface, where sampling has returned up to 73.7 gpt Au.
  • Azucar Minerals Ltd. Announced the discovery of another mineralized center at its El Cobre project in Veracruz. Two holes tested the El Primo target area, defined by a gold, copper and molybdenum soil anomaly. Relevant intervals comprise 5.25 m @ 0.60 gpt Au, 0.26% Cu and 8.45 m @ 0.20 gpt Au, 0.29% Cu in one hole and 200 m @ 0.40 gpt Au, 0.24% Cu in another hole, including 86.50 m @ 0.70 gpt Au, 0.42% Cu; which includes 55.60 m @ 0.94 gpt Au, 0.56% Cu; which includes 10 m @ 1.44 gpt Au, 0.85% Cu. This target is at least a kilometer away from other already identified mineralized centers within the property.
  • Oroco Resource Corp. commenced technical field work, initial environmental baseline studies and permitting at its Santo Tomas project in Sinaloa. This work is to be followed by a 3D induced polarization geophysical survey and the first phase of confirmation diamond drilling. The company holds an option to acquire a 56.7% interest in the 1,173 ha core concessions of the project, and might increase that interest up to an 81.0% interest with a project investment of up to CAD$30 M. Oroco also holds a 77.5% interest in 7,808 ha surrounding and adjacent to the core concessions.

ON MINING

  • Argonaut Gold Inc. informed on an accident involving a contractor that resulted in death by electrocution of two individuals while performing maintenance work on a haul truck at La Colorada mine in Sonora. Operations were suspended on October 11 and resumed on October 12, 2019.
  • Sierra Metals Inc. reported third quarter 2019 production, including figures from its Mexican operations. At Bolivar in Chihuahua, 331.8 K tonnes were processed at a 3,792 tonnes per day rate (tpd) @ 0.86% Cu, 20.5 gpt Ag, 0.31 gpt Au, recovering 81.3% Cu, 79.0% Ag, 62.3% Au to produce 5.115 M Lb Cu, 173 K Oz Ag, 2,173 Oz Au. At Cusi, also in Chihuahua, 70.4 K tonnes were processed at an 805 tpd rate @ 141.5 gpt Ag, 0.15 gpt Au, 0.14% Pb, recovering 84.6% Ag, 39.6% Au, 78.3% Pb to produce 271 K Oz Ag, 135 Oz Au, 168 K Lb Pb.
  • Fortuna Silver Mines Inc. disclosed production results for the third quarter 2019, including figures from its Mexico operations. At San Jose in Oaxaca, 268 K tonnes were milled @ 219 gpt Ag, 1.40 gpt Au, recovering 82.4% Ag, 90.6% Au, to produce 1.71 M Oz Ag, 10,942 Oz Au, at a cash cost per ton of US$70.80.
  • Avino Silver & Gold Mines Ltd. released third quarter 2019 production results from its Avino property in Durango. Consolidated figures comprise 202.7 K tonnes processed @ 44 gpt Ag, 0.33 gpt Au, 0.33% Cu, recovering 76% Ag, 67% Au, 68% Cu to produce 221.9 K Oz Ag, 1,448 Oz Au, 1.38 M Lb Cu. At the Avino mine 122.2 K tonnes were processed @ 41 gpt Ag, 0.31 gpt Au, 0.58% Cu to produce 139.4 K Oz Ag, 900 Oz Au, 1.3 M Lb Cu; 17.8 K tonnes were processed from the San Gonzalo mine stockpiles (the mine is now closed) @ 56 gpt Ag, 0.41 gpt Au to produce 29.6 K Oz Ag, 194 Oz Au; From historic above ground stockpiles 62.6 K tonnes were processed @ 47 gpt Ag, 0.33 gpt Au, 0.33% Cu to produce 232.1 K OZ Ag, 1,528 Oz Au, 311 K Lb Cu.
  • Gold Resource Corp. reported preliminary production for the third quarter 2019, including figures from its operations in Mexico. At the company’s Oaxaca Mining Unit, a total of 7,462 Oz Au, 473.8 K Oz Ag, 492 tonnes of copper, 2,459 tonnes of lead and 6,057 tonnes of zinc were produced.
  • McEwen Mining Inc. released production details for the third quarter 2019, including figures from its Mexican operations. At its El Gallo property in Sinaloa, 3,018 Oz Au were produced by residual leaching of the heap leach pad.

ON FINANCING

  • Kootenay Silver Inc. closed its non-brokered private placement of $2 M that was fully subscribed by Ninepoint Silver Equities Class with Sprott Asset Management LP acting as sub-advisor. (Columba, Chihuahua).
  • Candelaria Mining Corp. announced that a private placement previously announced has been discontinued due to unfavorable market conditions. The company intends to conduct an offering on a non-brokered private placement basis for aggregate gross proceeds of up to $700 K. Closing of the new private placement is expected to be on November 30, 2019 (Caballo Blanco, Veracruz).
  • Gainey Capital Corp. granted 1.5 M incentive stock options to its directors, officers employees and consultants (Las Margaritas, Durango).

ON RESOURCES AND DEVELOPMENT

  • SilverCrest Metals Inc. informed development work has intersected better grades than those in the resources estimate for the Babicanora vein at its Las Chispas property in Sonora. Underground mining along 180 m of the Babicanora vein (20% of the mineralized length on area 51) reported 33% less tonnes, but 65.7% more AgEq ounces for the interval. In total 4,170 tonnes were extracted @ 15.18 gpt Au and 1,071 gpt Ag (2,209 gpt AgEq), while the resource estimate in this zone graded 4.48 gpt Au and 556 gpt Ag (892 gpt AgEq). Underground sampling returned up to 2.8 m @ 94.52 gpt Au, 8,320 gpt Ag (15,409 gpt AgEq). SilverCrest plans to have a stockpile of 25-30 K tonnes of high-grade material containing 800 K to 1 M Oz AgEq, extracted by development work to the end of 2019.
  • Azure Minerals Ltd. is planning a two-stage drill program on resource expansion at Loma Bonita, within the Alacrán project in Sonora. High-grade intersections on the resource boundary, like 47 m @ 2.8 gpt Au, 33 gpt Ag and 67 m @ 1.6 gpt Au, 21 gpt Ag (both from surface) favor the continuity of the ore body. First pass sampling of historical workings south of Cerro Alacrán returned up to 3,675 gpt Ag, 21.1 gpt Au, 2.3% Cu, 33.5% Pb, 21.0% Zn. Applications for environmental approval have been submitted.

ON DEALS AND CORPORATE ISSUES

  • Tamino Minerals Inc. elaborated into the long and convolute company history and financing (El Volcan, Sonora).
  • Bacanora Lithium PLC. Announced the completion of the “Invested Agreement and Offtake Agreement” which together make the “Strategic Investment” of Ganfeng Lithium Co.. The relevant approvals have been completed and Bacanora has now received £21.96 M of funds from Ganfeng, for a 29.99% equity interest in Bacanora Lithium PLC and a 22.5% JV investment directly in the Sonora Lithium Project. The vice-president of Wangfeng was appointed a director of Bacanora. “The Bacanora project team in Mexico continues to progress the final design work for the mine, concentrator and kiln sections of the processing plant. The Ganfeng technical team has initiated work on the hydrometallurgical circuit…”
  • Tamino Minerals Inc. informed it is going to present a NI 43-101 report on its El Volcan property in Sonora once a registration statement is filed to the SEC and the company becomes fully reporting.
  • Megastar Development Corp. has entered into an option agreement with Gunpoint Exploration Ltd. to acquire 100% interest in the 899 ha Cerro Minas mining concession (title (234333) in Oaxaca. The agreement entails the payment of US$10 K and 100 K Megastar shares on the effective date, US$20 K and 150 K shares on the first anniversary, US$30 K and 250 shares on the second anniversary and US$40 K and 300 K shares on the third anniversary, with Gunpoint retaining a 1.5% NSR royalty, of which 0.5% can be bought by US$1.0 M.
  • Riverside Resources Inc. informed that the first two to three quarters of the exploration financing agreement with BHP for generative copper exploration in NW Sonora will be centered on regional prospect generation. The program envisages a minimum two-year US$2 M budget, and upon advancing projects to the operation phase (Phase II), BHP has the option to fund up to US$5 M for drilling and other exploration expenditures. Riverside is to receive US$200 K by project that makes it to the second phase.
  • Golden Minerals Co. entered into an option agreement with Magellan Gold Corp. to sell its rights to acquire a 100% interest in the Santa Maria project, in Chihuahua. Magellan has a 150 days due diligence period to decide whether to execute the option, on which it has to pay $1 M cash, with Golden Minerals retaining a 6.5% royalty until a total of $3 M has been paid as royalty, with Golden retaining a 3% NSR royalty for the life of the mine. If Magellan fails to get the mine to production within one year from closing the deal, Golden will get back the property.

ON SOCIAL RESPONSIBILITY

  • The Grupo Mexico Foundation donates 175 plants and trees in Queretaro. Grupo Mexico is aiding to reach the goal of planting 250 thousand trees in the Queretaro municipality. Grupo Mexico is the number one producer of tree saplings in the country.
  • Ternium delivers scholarships and supports education in a mining zone. The Roberto Rocca Education Program and the Universidad de Colima granted this year scholarships to 145 students from universities in Mexico City, Nuevo Leon, Coahuila, Veracruz, Puebla, Colima and Michoacan. Since its inception in 2006, the Roberto Rocca Education Program has granted 3,000 scholarships.
  • Esperanza Silver (Alamos Gold) presented a sustainable project for the Esperanza project in Morelos. The project involves the company’s involvement in the remediation of a nearby community landfill, and the collaborative support on the Lagunas de Zempoala, the national park Tepozteco, the biological corridor Ajusco-Chichinautzin as well as the state parks El Texcal, Sierra Montenegro and the biosphere reserve Sierra de Huautla.

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:  Gneiss hosted quartz-feldspar veinlet from a project in Oaxaca. Picture by Jorge Cirett.

IMG_2620 - copia

The Mining and Exploration News in Mexico: Highlights on the Fourth Week of September, 2019.

/ gambusinoprospectormexico / Leave a comment

Quartz vein displaying lattice  bladed texture

By Miguel A Heredia

During the thirty-nine week of the year (September 23th to September 29th, 2019), at least 21 press releases were announced by companies working in Mexico, with seven informing on exploration results, six disclosing deals and corporate issues, three announcing financial rounds, two communicating production results, one reporting on resources and development of their projects, one commenting on Mexican issues, and one notifying on social responsibility.  ON MEXICO ISSUES, Los Gatos mine was inaugurated in San José del Sitio, Chihuahua with an investment of USD $366M.  ON EXPLORATION, In Baja California Norte, One World Lithium announced the continuation of the phase 3 drilling program at its Salar del Diablo project. In Sonora, Ridgestone released historical assays results from its Rebeico project. In Chihuahua, Kootenay reported drilling results from its Columba project.  In Durango, Canasil reported high grade sampling results from its Nora property. In Jalisco, GoGold released drill results from its Los Ricos project. In Veracruz, Mexican Gold announced 3,000m of drilling and its exploration plan for the remainder 2019 on its Las Minas project, and Azucar Minerals released drilling results from its El Cobre project. ON MINING, Mexus Gold provided an update on its Santa Elena mine in Sonora. Azure also provided an update on the first phase small-scale mining program at its Oposura project in Sonora. ON FINANCING, Aztec Minerals applied to the TSX to extend the term of 2,551,250 common share purchase warrants (Cervantes project, Sonora). Silver Viper closed a private placement for gross proceeds of $4M (La Virginia project, Sonora). Gold Resource declared its monthly dividend for September 2019 to shareholders (Arista mine, Oaxaca).  ON RESOURCES AND DEVELOPMENT, Prime informed that the company completed a formal visit to its Los Reyes property in Sinaloa, to attend meetings with local stakeholders, to secure surface access and begin site preparation, and to initiate exploration and engineering work for the planned production phase. ON DEALS AND CORPORATE ISSUES, Advance Gold announced that a geophysical adviser was added to its exploration team (Tabasquena project, Zacatecas). Colibri Resources entered into a property option agreement with Tocvan Ventures Corp., on its Pilar property in Sonora. Consolidated Zinc completed the acquisition of a 100% interest of the Plomosas mine in Chihuahua. Vizsla entered into a definitive share purchase agreement to acquire an option on the Panuco-Copala mining camp in Sinaloa. Ridgestone entered in an agreement to acquire a 100% interest in 10 mining concessions adjacent to its Rebeico project in Sonora. ON SOCIAL RESPONSIBILITY, Fortuna Silver, through its subsidiary Minera Cuzcatlán, has invested MXP $177.2M in social programs in Oaxaca, Mexico.

 ON MEXICO ISSUES

  • Los Gatos mine was inaugurated in San José del Sitio, Chihuahua. The governor of Chihuahua State, Javier Corral, participated in the inauguration of the Los Gatos mines, located in San Jose del Sitio, Chihuahua. The mine was built with an investment of USD$ 366M among the Japanese company Dowa Mining and the American Sunshine Silver Mining company, for an estimated daily production of 2,500 tons of ore, which will be processed in the same plant with state-of-the-art technology, to obtain concentrates of Ag, Pb, and Zn. Governor Javier Corral celebrated the alliance of Japanese and American capital that occupied 1,800 people in construction and will give permanent employment to another 510 on its operation.

ON EXPLORATION

  • One World Lithium, announced the continuation of the phase 3 drilling program at its Salar del Diablo project in Baja California Norte. The phase three will consists of 3 holes adjacent to previously partly drilled holes 1, 9, and 11, and 1 hole located 50km to the south, for a total of 2,400m. Each hole has planned depths of 600m. Each hole will be drilled with a mud rotary rig that will set casing to 200 meters and then core drilled to the planned total depth of 600 meters. Objectives of the drilling program are “to determine the presence of aquifers that may contain concentrations of lithium in brines at depth; to collect representative, depth-specific groundwater samples for chemical analysis of major elements, including Li; to obtain drill core samples for analysis for drainable porosity that will assist in resource estimations; and to use borehole lithologic descriptions to identify hydrogeologic units and the stratigraphy of the basin; to help calibrate existing and future geophysical surveys; and to create a hydrogeologic model to develop a potential future Li resource”.
  • Ridgestone Mining Inc., released historical assays results from its Rebeico project in Sonora. These assays are from rock chip samples obtained by the Servicio Geológico Mexicano (SGM) at El Cobre, Tres Hermanos, Amargosa I and II, La Amargosita, and Campo Seco old workings. At El Cobre, two samples taken on the vein reported 0.8 g/t Au, 39 g/t Ag, 1.67% Cu, and 0.12% Mo over 1.18m, and 0.7 g/t Au, 50 g/t Ag, 0.51% Cu, and 0.18% Mo over 1.12m. In addition, two dump samples returned 0.5 g/t Au, 102 g/t Ag, 2.41% Cu, and 0.30% Mo, and 0.35 g/t Au, 38 g/t Ag, 2.07% Cu, and 1.22% Mo. At Tres Hermanos, highlights include 14.6 g/t Au and 23 g/t Ag over 1.30m; 8.13 g/t Au and 17 g/t Ag over 1.20m; 3.4 g/t Au, 23 g/t Ag, and 0.14% Cu over 1.90m; and 1.4 g/t Au, 137 g/t Ag, and 2.72% Cu over 1.0m. At La Amargosa I and II, 10 g/t Au and 3.48% Cu over 0.7m; 5.86 g/t Au and 1.85% Cu over 0.68m; and 2.66 g/t Au and 0.55% Cu over 0.71m. At La Amargosita, 17 g/t Au, 73 g/t Ag, and 0.45% Cu over 1.30m and one dump sample with 0.1 g/t Au, 777 g/t Ag, and 1.56% Cu. At Campo Seco, 0.1 g/t Au, 18 g/t Ag and 7.49% Cu over 0.55m.
  • Kootenay Silver Inc., reported drilling results from three holes drilled on the F Vein and five holes drilled on the I Vein at its Columba project in Chihuahua. Significant drill intersections were encountered in hole CDH-19-011 with 133 g/t Ag, 0.04% Pb, and 0.15% Zn over 11.0m, including 245 g/t Ag, 0.13 g/t Au, 0.1% Pb, and 0.3% Zn over 5.0m, and including 648 g/t Ag, 0.63 g/t Au, 0.2% Pb, and 0.6% Zn over 1.0m, on the F Vein, and 228 g/t Ag, 0.1% Pb, and 0.6% Zn over 1.2m and 102 g/t Ag, and 0.1% Zn over 1.68m on the foot wall vein; in hole CDH-19-012 with 184 g/t Ag, 0.2 g/t Au, 0.1% Pb, and 0.4% Zn over 11.0m, including 476 g/t Ag, 0.66 g/t Au, 0.3% Pb, and 1% Zn over 3.15m, including 476 g/t Ag, 0.66 g/t Au, 0.3% Pb, and 1% Zn over 3.15m, and including 755 g/t Ag, 1.16 g/t Au, 0.5% Pb, and 1.7% Zn over 1.75m on the F Vein, and three intersections on the hanging wall of 113 g/t Ag, 0.1% Pb, and 0.1% Zn over 1.35m, 699 g/t Ag, 0.4% Pb, and 0.8% Zn over 2.1m, and 113 g/t Ag, 0.1% Pb, and 0.1% Zn over 0.6m; in hole CDH-19-013 with 273 g/t Ag, 0.1% Pb, and 0.2% Zn over 4.15m on I Vein, including 697 g/t Ag, 0.15% Pb, and 0.3% Zn over 0.65m, and 328 g/t Ag, 0.1% Pb, and 0.2% Zn over 2.65m; in hole  CDH-19-014 with 261 g/t Ag, 0.3% Pb, and 0.6% Zn over 5.01m on the I Vein, and 894 g/t Ag, and 0.4% Zn over 0.42m on the hanging wall; in hole CDH-19-015 with 1,005 g/t Ag, 0.4% Pb, and 0.7% Zn over 0.3m on the I Vein; and in hole CDH-29-016 with 357 g/t Ag on the I Vein. “Drilling continues at the property with a total of 24 holes completed to date and the program being expanded from 3000 meters to approximately 4500 meters. It is anticipated that a total of 35 to 40 holes will be completed by early November with assay results continuing into December”.
  • Canasil Resources Inc., reported high grade results from 21 surface samples taken along the Candy vein, 31 samples collected from adjacent country rocks, and 12 dump samples at its Nora project in Durango. The Candy vein, an epithermal Au-Ag target, has not been previously drilled. There has been limited, historical mining of the Candy vein, and small mineralized waste dumps are present. Average of the 21 samples collected along the Candy vein is 1.69 g/t Au, 140 g/t Ag, 0.4% Cu, 1.6% Pb, and 0.6% Zn over 0.68m, with the highest Au value of 12.55 g/t Au, 12 g/t Ag, 1% Cu, 2.7% Pb, and 0.7% Zn over 0.40m, and the highest Ag value of 605 g/t Ag, 3.72 g/t Au, 0.97% Cu, 1.2% Pb, and 0.4% Zn over 1.0m. The average grade of the 12 dump samples is 1.40 g/t Au, 86 g/t Ag, 1.1% Cu, 3.4% Pb, and 1.6% Zn. These results will be interpreted to identify possible locations for subsequent drilling.
  • GoGold Resources Inc., released drilling results of four new holes drilled at Los Ricos Main Area and three new holes drilled at San Juan Area from its Los Ricos project in Jalisco. Significant drill intersections at Los Ricos Main Area were encountered in hole LRGG-19-038 with 0.72 g/t Au and 165 g/t Ag (2.92 g/t AuEq) over 21.2m, including 1.33 g/t Au and 302 g/t Ag (5.36 g/t AuEq); in hole LRGG-19-040 with 0.4 g/t Au and 115 g/t Ag (1.93 g/t AuEq) over 17.5m, including 0.89 g/t Au and 281 g/t Ag (4.64 g/t AuEq) over 4.5m; in hole LRRGG-19-041 with 1.14 g/t Au and 115 g/t Ag (2.68 g/t AuEq) over 23.3 m, including 4.6 g/t Au and 398 g/t Ag (9.91 g/t AuEq) over 5.5m; and in hole LRGG-19-042 with 0.47 g/t Au and 69 g/t Ag (1.40 g/t AuEq) over 29.2m, including 1.65 g/t Au and 224 g/t Ag (4.63 g/t AuEq) over 6.7m. At San Juan Area, the most significant drill intersections were encountered in hole LRGG-19-045 with 0.59 g/t Au and 34 g/t Ag (1.04 g/t AuEq) over 20m, including 2.92 g/t Au and 91 g/t Ag (4.123 g/t AuEq) over 3.5m; and in hole LRGG-19-046 with 0.36 g/t Au and 62 g/t Ag (1.19 g/t AuEq) over 36m, including 1.3 g/t Au and 220 g/t Ag (4.24 g/t AuEq) over 5.5m.
  • Mexican Gold Corp., announced an aggressive exploration plan for the remainder of 2019 at its Las Minas project in Veracruz, including a drill program of 3,000m. The company plans to drill test the Pueblo Nuevo, Cinco Señores TEM anomaly, Las Minillas, and El Dorado targets, and test the conceptual targets of Sub-Sill and the Mancuerna Dike Swarm for potential skarn mineralization.
  • Azucar Minerals Ltd., reported results from its ongoing drilling program at its El Cobre project in Veracruz at Norte, Villa Rica, Porvenir and Suegro targets. The most significant intervals were encountered at the Norte Target, where the hole EC-19-077 intersected 0.26 g/t Au and 0.11% Cu over 43.50m, including 0.53 g/t Au and 0.21% Cu and the hole EC-19-082 intersected 0.25 g/t Au and 0.12% Cu over 237.30m, including 0.63 g/t Au and 0.27% Cu over 44.45m, and another interval of 1.01 g/t Au and 0.33% Cu over 12.75m. At El Porvenir target, hole EC-19-078 intersected 82 g/t Au and 0.02% Cu over 12m, including 20.6 g/t Au and 0.01% Cu over 1.0m.

ON MINING

  • Mexus Gold US, provided an update on its Santa Elena mine in Sonora. The compnay informed that all systems are working properly but the Merrill Crow Au recovery plant currently in use is running at 30 gpm and producing 3Oz Au per day. Mexus is moving a new plant to Santa Elena which will have the capacity to run up to 500 gpm. This new equipment is expected to be operational in October, which allows the company to reach its long term production goal.
  • Azure Minerals Limited provided an update on the first phase small-scale mining program at its Oposura project in Sonora. Azure extracted and stockpiled an estimate of 6,100 tons of 13.4% Zn and 10.7% Pb from open pit, including 2,100 tonnes of 24% Zn and 18.3% Pb. Tonnages and grades exceed significantly the mineral resource estimate for this part of the deposit. Ore processing will start in the December quarter and will continue for 2-3 months. “Azure will produce separate Zn and Pb-Ag concentrates and expects to sell them on the spot market to locally-based metals traders or smelters, several of which have expressed strong interest in these products”.

ON FINANCING

  • Aztec Minerals Corp., applied to TSX to extend the term of an aggregate of 2,551,250 common share purchase warrants by one year from October 21, 2019 to October 21, 2020. “Each warrant entitles the holder to acquire one common share in the capital of the company at an exercise price of $0.25 per common share until the current expiry date of October 21, 2019. An aggregate of 23,750 warrants have been exercised to date and 550K warrants are held, directly or indirectly, by insiders of the company. The extension of the term of the warrants for an additional year is subject to the acceptance of TSX” (Cervantes project, Sonora).
  • Silver Viper Minerals Corp., closed a private placement for gross proceeds of $4M. Net proceeds will be used to continue exploration and development of its la Virginia project in Sonora, and for general corporate and working capital purposes.
  • Gold Resource Corporation, declared its monthly dividend of 1/6 of a cent per common share for September 2019, payable in October 23, 2019 to their shareholders (Arista mine, Oaxaca).

ON RESOURCES AND DEVELOPMENT

  • Prime Mining Corp., informed that the company completed a formal visit to its Los Reyes property in Sinaloa, to attend meetings with local stakeholders, to secure surface access and begin site preparation and to initiate exploration and engineering work for the planned production phase. The company has initiated a 5,000m trenching and surface sampling program on mineralized structures to provide valuable assay data to be used in conjunction with down drill data to update resource estimation. “The current trenching program will provide greater confidence in the conversion of these blocks to indicated resources for the upcoming resource estimate”.

ON DEALS AND CORPORATE ISSUES

  • Advance Gold Corp., announced that a geophysical adviser with over 40 years of international mining exploration experience was added to its exploration team (Tabasquena project, Zacatecas).
  • Colibri Resources Corporation, entered into a property option agreement with Tocvan Venture Corp., on its 100% owned Pilar project in Sonora. Tocvan has been granted a 60 days exclusivity period to complete a due diligence by paying Colibri $25K. If the due diligence is positive and Tocvan decide to continue the option agreement, it will have the option to earn 51% of the property over a 5 years period by issuing 2M common shares, paying CAD $100K to Colibri, 60 days after signing the final agreement, and performing CAD $250K of exploration expenditures at Pilar property during the first year. On year 2, Tocvan will pay CAD $ 50K to Colibri and will perform CAD $350K of exploration expenditures. On year 3, Tocvan will pay CAD $75K and issue 1M common shares to Colibri, and perform CAD $400K of exploration expenditures. On year 4, Tocvan will pay CAD $75K and issue 1M common shares to Colibri, and perform CAD $500K of exploration expenditures. On year 5, Tocvan will pay CAD $75K and issue 1M common shares to Colibri, and perform CAD $500k of exploration expenditures. Upon completion of these terms Tocvan will be granted a 6 month option to purchase the remaining 49% of Pilar in exchange for CAD $2M and a 2% NSR on the project, of which 1% could be sold by Colibri for a price of CAD $1M. Tocvan will operate the project during the option period.
  • Consolidated Zinc Limited, completed the acquisition of a 100% interest of the Plomosas mine in Chihuahua by acquiring the remaining 10% interest from Retec Guaru S.A. de C.V.
  • Vizsla Resources Corp., entered in a definitive share purchase agreement to acquire an option over the consolidated mineral rights, infrastructure and processing facilities comprising the large scale Panuco-Copala mining camp in Sinaloa. Vizsla has agreed to acquire all of the outstanding shares of Canam Alpine Ventures Ltd. Vizsla will acquire Canam for a total staged consideration of 18M common shares of Vizsla by issue 6M common shares on closing of the acquisition, 6.5M common shares upon definition of a resource greater than 200K Oz AuEq, and 5.5M common shares upon exercise of the option. Also, Vizsla will pay USD $700K on signing, USD $450K in the first anniversary of signing, USD $5,184,500 and work commitment of USD $3,423,000 in the second anniversary of signing, USD $6,846,000 in the third anniversary of signing, USD $8,557,500 in the fourth anniversary of signing, USD $9,269,000 in the fifth anniversary of signing, and USD $11,907,425 in the sixth anniversary of signing.
  • Ridgestone Mining Inc., entered in an agreement to purchase a 100% interest in 10 mining concessions adjacent to its Rebeico project in Sonora. These 10 mining concessions cover an area of 3,292 hectares and contain numerous artisanal old workings and mineralized outcrops. Terms of the acquisition include a cash payment of USD $83K and the issuance of 5M common shares of Ridgestone to the vendor.

ON SOCIAL RESPONSIBILITY

  • Fortuna Silver Mines Inc., through its subsidiary Minera Cuzcatlán has invested MXP $172.2M in San Jose del Progreso, Oaxaca and surrounding communities, since it started operations in 2011. One of the most outstanding projects to date is the breeding and fattening of lambs in the community of El Cuajilote. This has been successfully promoted by Compañía Minera Cuzcatlán since 2016. The company contributes with inputs and technical advice, while producers provide labor. Additionally, the suppliers of inputs are 100% local, also benefiting companies in the region. Currently 70% of 400 square meters of productive infrastructure have been installed. The amount of sheep bellies, of a target of 90, has been increased by 45% by keeping them in the feeding and reproduction program. Likewise, the percentage of births has increased from 80% to 125%. In this way, Compañía Minera Cuzcatlán makes a difference for families benefiting from this and other programs, since they receive financial support by providing inputs for food by the company and training according to the productive or reproductive season.

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

On the picture above, quartz vein with stibnite and displaying lattice  bladed texture in a prospect in San Luis Potosi, Mexico.  Photo by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the First Week of September, 2019

/ Gambusino Prospector / Leave a comment

IMG_0970aBy Jorge Cirett

During the 36th week of the year (September 2nd to September 8th, 2019), at least 20 press releases were announced by companies working in Mexico. ON MEXICO ISSUES,  Karen Flores Arredondo was appointed General Director of CAMIMEX. VVC Exploration is searching for financing to start operations at Samalayuca.  ON EXPLORATION, in Baja California, One World Lithium is to conduct a field visit to its Salar del Diablo project. In Sonora, Minera Alamos announced the discovery of a new target, Gold Ridge. In Chihuahua, Ethos Gold released results on 16 RC holes at the Purisima project. In Coahuila, Prize Mining released assay results of several targets on a 20 km long trend. In Zacatecas, Galore received assays for the first two holes at El Alamo target of its Dos Santos project; Advance Gold completed an IP survey at the Tabasqueña project; Alien Metals released exploration results at San Celso, Los Campos and Donovan 2. ON MINING, Argonaut Gold completed a fourth water well, and now has the capacity to sustain production at 30 K tonnes a day at San Agustin, Zacatecas. ON FINANCING, Mexican Gold granted 650 K stock options. Defiant Silver seeks to extend the expiry date of some warrants. SilverCrest Metals granted options for 975 K shares. Telson Mining received conditional approval for a US$12 M loan. Southern Silver Corp.  closed the final tranche of financing for gross proceeds of $1.1 M. Silver Viper intends to raise up to $3.0 M through a private placement financing round. ON RESOURCES AND DEVELOPMENT, GoGold released results for four more holes at its Los Ricos project in Jalisco. Pan American Silver reported all-inclusive reserves and resources of 203.3 M Oz Ag, 2.16 M Oz Au on its La Colorada, Dolores and La Bolsa properties. Minera Alamos received one more permit to start construction at its Santana project in Sonora. Goldplay Exploration released underground channel sampling results from San Marcial, Sinaloa. ON DEALS AND CORPORATE ISSUES, Mexican Gold Corp. appointed new directors and announced an incoming new resource estimate for Las Minas, Veracruz. Consolidated Zinc acquired the remaining 10% of the Plomosas mine rights to gain a 100% interest. The company also announced a favourable court ruling on a land use agreement for the Plomosas mine.   ON SOCIAL RESPONSIBILITY. No relevant news.

ON MEXICO ISSUES

  • The sectional president from Samalayuca, Chihuahua, Javier Melendez Cardona, was interviewed on the coming mining investment on La Gloria by VVC Exploration Corp. He explained the project is in the financing stage of a process that is to greatly benefit the local communities.
  • Karen Flores Arredondo is appointed CAMIMEX’s (Cámara Minera de México) General Director as of September 15, 2019. Flores Arredondo has recently worked for Agnico Eagle in Mexico, and has held posts with other private enterprises and government agencies related to the Mining Industry.

ON EXPLORATION

  • Prize Mining Corp. released assay results from surface sampling at its Manto Negro project in Coahuila. The sampling on the Apache, San Jose and Las Curvas concessions returned up to 1.3 m @ 3.86% Cu, 44 gpt Ag; 1.2 m @ 2.62% Cu, 58 gpt Ag; 1.8 m @ 2.31% Cu, 28 gpt Ag and six chip samples running 7.7% to 29.3% Cu and 190 to 759 gpt Ag. At San Jose a best sample interval of 1.8 m @ 2.3% Cu, 28 gpt Ag and up to 17.1% Cu and 1,689 gpt Ag from dumps. At Las Curvas the best mineralised interval was 2 m @ 2.5% Cu, 33 gpt Ag and up to 23% Cu, 710 gpt Ag from dumps. Prize is pursuing a mineralised horizon over 20 km in length in the Formation San Marcos red-bed sandstone below the Cupido Formation limestone.
  • Ethos Gold Corp. released results of the completed 16 reverse circulation (RC) drill campaign at its Purisima project in Chihuahua. At the site Ethos targeted shallow gold mineralisation in epithermal banded quartz veining and associated silicification and stockworks. Highlighted results include 3.05 m @ 0.76 gpt Au; 7.62 m @ 0.52 gpt Au; 9.14 m @ 0.43 gpt Au, 14 gpt Ag; 6.10 m @ 0.40 gpt Au, 9 gpt Ag; 15.24 m @ 0.50 gpt Au; 6.10 m @ 0.50 gpt Au. Ethos decided to terminate the Purisima option agreements.
  • Galore Resources Inc. received assays for the first two core holes at El Alamo target, part of its Dos Santos project in Zacatecas. Highlighted results comprise 3.40 m @ 3.46 gpt Au, 3 gpt Ag (including 1.20 m @ 8.89 gpt Au); 10.90 m @ 14 gpt Ag (including 1.0 m @ 88 gpt Ag); 9.15 m @ 2.02 gpt Au, 5 gpt Ag. The results also define intervals tens of meters in width with anomalous silver in the 1-10 ppm range. Galore informs these results, along with some other tracer elements, support the view that this is the upper part of an epithermal system.
  • Minera Alamos Inc. announced the identification of Gold Ridge, a new mineralised zone on its Santana property in Sonora. One third of 147 rock samples collected exhibit grades >0.10 gpt Au, ranging from 0.1 gpt to 3.6 gpt Au and 5 gpt Ag to 669 gpt Ag, with the mineralised surface covering an area of 1,000 m x 200 m located 2-3 km from the currently planned heap leach operations at Santana.
  • Advance Gold Corp. completed a 3D induced polarization (IP) geophysical survey on its Tabaqueña project in Zacatecas. The 9.6 line kilometre survey highlighted a 250 wide by 800 m long continuous chargeability anomaly.
  • One World Lithium Inc. announced the visit of Mike Rosko of Montgomery & Associates to the Salar del Diablo project in Baja California, along with the president and director of OWL. The visit is to include previous and proposed drill site locations as well as surface geological features.
  • Alien Metals Ltd. released results from recent exploration at its San Celso, Los Campos and Donovan 2 projects in Zacatecas. At San Celso, further assays include 18 anomalous samples averaging 272 gpt Ag, with a high of 1,275 gpt Ag. At Los Campos, 14 anomalous samples averaged 185 gpt Ag, with a peak of 547 gpt Ag. At Donovan 2, a sample returned 2.68 gpt Au.

ON MINING

  • Argonaut Gold Inc. completed the fourth water well at its San Agustin operation in Durango. The new well demonstrated sufficient water capacity to meet the needs of the operation to run at 30 K tonnes per day of ore, which is planned for the fourth quarter of 2019.

ON FINANCING

  • Mexican Gold Corp. granted 650 K stock options to an officer and an employee of the company (Las Minas, Veracruz).
  • Defiant Silver Corp. intends to seek TSX Venture Exchange approval to extend the expiry date of 6.19 M warrants, previously issued, by one year (San Acacio, Zacatecas).
  • SilverCrest Metals Inc. granted stock options for 975 K shares to directors, officers, employees and consultants of the company (Las Chispas, Sonora).
  • Telson Mining Corp. received conditional approval for a US$12 M medium term loan from an international investment bank to finalize construction at Tahuehueto, Durango.
  • Southern Silver Exploration Corp. closed the final tranche of the previously announced private placement, for gross proceeds of $1.1 M. In total the company closed two tranches for gross proceeds of $4.2 M (Cerro Las Minitas, Durango).
  • Silver Viper Minerals Corp. intends to overtake a private placement financing to raise gross proceeds of up to $3.0 M (La Virginia, Sonora).

ON RESOURCES AND DEVELOPMENT

  • GoGold Resources Inc. released results for three more diamond drill holes at Los Ricos main area and the first hole drilled at the San Juan target of its Los Ricos project in Jalisco. Highlighted drill core intervals comprise 6.2 m @ 1.17 gpt Au, 158 gpt Ag; 15.5 m @ 0.53 gpt Au, 84 gpt Ag (including 2.7 m @ 2.04 gpt Au, 217 gpt Ag); 17.1 m @ 1.59 gpt Au, 364 gpt Ag (including 5.6 m @ 3.81 gpt Au, 818 gpt Ag) at Los Ricos and 16.9 m @ 0.54 gpt Au, 68 gpt Ag (including 5.0 m @ 1.46 gpt Au, 148 gpt Ag) at the San Juan target.
  • Pan American Silver Corp. reported mineral reserves of 557 M Oz Ag, 5.1 M Oz Au, of which 141.6 M Oz Ag and 1.58 M Oz Au are in its three properties in Mexico: La Colorada, Dolores and La Bolsa. Reserves and resources all inclusive comprise 148.3 M Oz Ag, 129.8 K Oz Au at La Colorada in Zacatecas, 45.4 M Oz Ag, 1,383.5 K Oz Au at Dolores in Chihuahua and 9.6 M Oz Ag, 651.7 K Oz Au at La Bolsa in Sonora.Pan American Silver Reserves1
  • Minera Alamos Inc. received the ETJ (Estudio Tecnico Justificativo) for the Santana Gold project in Sonora. Combined with the previously approved MIA (Manifiesto de Impacto Ambiental) the company holds all the necessary rights to initiate construction of commercial scale operations at Santana.
  • Goldplay Exploration Ltd. released results from underground channel sampling in a re-opened old adit at the Faisanes target of its San Marcial project in Sinaloa. A zone of 11 m @ 155 gpt includes 6 m @ 232 gpt Ag, ending in mineralisation at the deepest sampled point within the tunnel. “The Company is reviewing plans to extend the tunnel beyond this high-grade Interval”.

ON DEALS AND CORPORATE ISSUES

  • Mexican Gold Corp. announced the appointment of Matt Liard as Vice President Exploration, Sonny Bernales as Senior Geologist and Michael Kanevsky as CFO. The company outsourced an updated 43-101 resource estimate with an underground cut-off grade, that should be released in October 2019 (Las Minas, Veracruz).
  • Consolidated Zinc Ltd. entered into a binding agreement with Retec Guaru S.A. de C.V. under which CZC is to acquire the remaining 10% interest in the Plomosas mine in Chihuahua. “The purchase consideration for the acquisition of the Retec interest in MLAZ is a 1% Net Smelter Return Royalty (the “Royalty”) from the sale of zinc and lead concentrates produced from Plomosas”. Completion of the agreement is expected by 30 September 2019.
  • Consolidated Zinc Ltd. announced that the Appeals Court of Chihuahua ruled in favour of the company’s subsidiary regarding a dispute over a land use agreement with a local rancher in place for its Plomosas mine in Chihuahua.

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

On the image below: Quartz veinlet on an orogenic gold project in Oaxaca. Picture by Jorge Cirett

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