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Highlights on the Fifth Week of November, 2018. Mining and Exploration News in Mexico

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Plagioclase lined epidote patches and veinlets in andesitic volcanic rocks in  Jalisco. Picture by Jorge Cirett.

By Jorge Cirett

During the 48th week of the year (November 26th to December 2nd, 2018), at least 16 press releases were announced by companies working in Mexico. Minaurum, Mexus Gold and Harvest Gold released news on exploration. Impact Silver and Santacruz Silver released third quarter results; America Silver increased production and Goldcorp is commissioning a new plant. Silver Spruce and SilverCrest announced news on financing. Endeavour Silver presented results from drilling. Americas Silver, Telson Mining, Candente Gold, Aura Silver and Firma Holding presented news on deals and corporate issues. ON MEXICO ISSUES, Andrés Manuel López Obrador was sworn as Mexico’s president for the next six years. ON EXPLORATION, In Sonora, Minaurum Gold released high grade gold results from surface sampling of a new vein at its Alamos property; Mexus Gold continues drilling at its Santa Elena project. In Chihuahua, Harvest Gold informed on drilling at its Cerro Cascaron project in Chihuahua. ON MINING, Impact Silver and Santacruz Silver presented quarterly reports. Americas Silver increased production rates at Cosalá, in Sinaloa, and Goldcorp produced first gold on its pyrites plant in Peñasquito, Zacatecas. ON FINANCING, Silver Spruce was granted an extension on its financing round. SilverCrest is securing a $30.6 M investment by SSR Mining. ON RESOURCES AND DEVELOPMENT, Endeavour Silver reported high-grade intersections from Bolañitos, in Zacatecas.  ON DEALS AND CORPORATE ISSUES, Americas Silver and Pershing Gold are to complete a business combination. Telson Mining announced the amending of a loan agreement with Nyrstar. Candente Gold and Sun River signed an agreement on El Oro tailings in Estado de Mexico. Aura Silver is to change name to Aura Resources Inc. Grace Point Mining owns now the Magistral project in Sinaloa.

ON MEXICO ISSUES

  • On December 1st 2018, Andrés Manuel López Obrador, a life-long left wing politician, took charge as Mexico’s president for the next six years (2018-2024).

ON EXPLORATION

  • Minaurum Gold Inc. released high grade gold assays from rock chip sampling on the Alessandra vein at its Alamos project in Sonora.The new vein is the first showing high grade gold in the project, measures more than 4 m in width, can be clearly traced for 1.1 km and topography suggest it might extend for another kilometer. Highlighted rock chip samples include: 0.4 m @ 17 ppb Au, <1 g/t Ag, 2.22% Cu, 0.98% Pb, 2.04% Zn; 1.0 m @ 9 ppb Au, 16 g/t Ag, 0.04% Pb, 0.06% Zn; 1.0 m @ 8 ppb Au, 6 g/t Ag, 1.55% Cu; 0.3 m @ 102,000 ppb Au (102 g/t Au), 29 g/t Ag, 1.94% Cu, 0.07% Pb, 0.25% Zn; 1.0 m @ 619 ppb Au, 4.63% Cu; 0.5 m @ 65 ppb Au, 4 g/t Ag, 2.97% Cu, 0.64% Pb, 4.90% Zn.
  • Mexus Gold US. continues drilling at its Santa Elena project in Sonora (not to be mistaken with First Majestic’s Santa Elena mine, also in Sonora), and is now on its 7th hole. “Drill holes proved the continuity at depth of the main quartz vein varying in width from 0.75 m up to 2.0 meters at 25 to 35 meters deep with a dip angle of 45 degrees to the East”. A shallow dipping shear-fault zone consisting of fault-gouge-mylonite with siderite, hematite and quartz fragments has also consistently being intercepted with 7 to 12 m widths. Holes onward from hole 5 are targeting deeper parts of the Julio vein.
  • Harvest Gold Corp. informed three holes at the Cascarita high grade prospect at its Cerro Cascaron project in Chihuahua have been completed, after delays by unexpected heavy rains at the start of the drilling campaign. The rig is being moved by helicopter to drill the Serpiente Dorada and San Pedro targets.

ON MINING

  • Impact Silver Corp. released third quarter 2018 results. Mill throughput was 42.23 K tonnes @ 165 g/t Ag, to produce 179.5 K Oz Ag. Revenues for the quarter were $3.1 M, EBITDA -$1.5 M, a net loss of $1.4 M, of which $0.4 M was amortization and depletion.The focus now is on development of areas of higher grade ore. Impact is currently raising a non-brokered financing, the fourth capital raise in company history (San Ramón, Estado de México).  
  • Americas Silver Corp. informed production was increased to over 1,700 tonnes per day (tpd) during October at its San Rafael mine in the Cosalá district in Sinaloa.
  • GoldCorp Inc. announced first gold has been achieved at its Peñasquito’s Pyrite Leach Project (PLP) in Zacatecas, Mexico. “Commissioning commenced in the third quarter of 2018 and the PLP is now processing 100% of the existing plant tailings. The PLP plant is operating 24 hours a day and is continuing the planned ramp-up process”. Commercial production is now expected by the end of 2018.
  • Santacruz Silver Mining Ltd. reported third quarter 2018 financial results. At Veta Grande in Zacatecas, and Rosario in San Luis Potosi, 58 K tonnes were processed to produce 249.4 K Oz Ag at cash cost $27.40 and AISC of $31.07 per AgEq Oz. Santacruz recorded a net loss of $2.9 M during the period and a negative EBITDA of $2.74 M.  

ON FINANCING

  • Silver Spruce Resources Inc. was granted an extension by the TSX Venture Exchange to complete the previously announced non-brokered private placement to raise up to $1.5 M (Pino de Plata, Chihuahua).
  • SilverCrest Metals Inc. announced SSR Mining Inc. has agreed to invest $30.66 M (C$40 M) in a non-brokered private placement financing. As long as SSR hold more than 5% of SilverCrest outstanding shares,it is entitled to acquire up to a maximum of 9.9% of the shares, participation rights to maintain pro rata share ownership interest, a right of first refusal on any proposed royalty, stream of off take agreement and certain information rights to Las Chispas technical and scientific data.

ON RESOURCES AND DEVELOPMENT

  • Endeavour Silver Corp. reported high-grade intersections from the drilling program at the Bolañitos mine in Guanajuato. “A total of 55 drill holes from surface and 11,000 metres were completed by the end of October on seven different vein targets, all of which are located within four kilometres of the Bolanitos plant”. Some true width (TW)  highlighted intervals: 8.0 m @ 2.68 g/t Au, 6 g/t Ag; 1.2 m @ 13.17 g/t Au, 138 g/t Ag; 2.2 m @ 2.19 g/t Au, 53 g/t Ag; 2.2 m@ 2.05 g/t Au, 121 g/t Ag; 1.5 m @ 3.74 g/t Au, 49 g/t Ag; 1.3 m @ 2.92 g/t Au, 51 g/t Ag; 1.9 m @ 2.62 g/t Au, 18 g/t Ag; 1.5 m @ 8.66 g/t Au, 89 g/t Ag; 1.1 m @ 2.25 g/t Au, 1,415 g/t Ag; 1.6 m @ 6.79 g/t Au, 420 g/t Ag; 1.9 m @ 3.42 g/t Au, 102 g/t Ag; 1.4 m @ 2.38 g/t Au, 635 g/t Ag.

ON DEALS AND CORPORATE ISSUES

  • Americas Silver Corp. entered last September into a definitive agreement to complete a business combination with Pershing Gold, which owns the Relief Canyon project in Nevada. Relief Canyon is expected to produce 75-90 K Oz Au annually for at least seven years of mine life. Both Americas Silver and Pershing Gold shareholders have to vote on the transaction prior to a meeting on January (Cosalá, Sinaloa).
  • Telson Mining Corp. reached an agreement with Nyrstar Holdings Ltd. to amend the terms of its loan agreement. Among the main terms, Telson paid US$500 K plus interest and agreed to pay monthly installments of US$500 K plus interest until October 2019, at 10% per annum. Along with these payments, Telson will also pay 70% of any monthly cash flow, plus any monthly excess cash balance above US$500 K plus 50% of the monthly free cash flow generated by Telson’s Tahehueto project, once it declares commercial production (Campo Morado,Guerrero).
  • Candente Gold Corp. signed a definitive agreement with Sun River Gold Corp. in which Sun River has the option to further test and, if proven economic, develop and operate the Candente’s tailings project in El Oro, Estado de México. Besides an already made payment of US$170 K, Sun River has to make staged payments to complete US$300 K within 15 months from the signing on November 2017 and grant Candente a 10% of net profits life of mine royalty. The tailings contain an inferred resource of 1.27 K tonnes containing 119.9 K Oz Au, 3 M Oz Ag (El Oro, Estado de México).
  • Aura Silver Resources. Announced its shareholders approved the name change to Aura Resources Inc., and a five to one consolidation of the shares, on a meeting held on November 15th, 2018 (Taviche, Oaxaca).
  • Firma Holdings Corp. announced “that its subsidiary GracePoint Mining Corp. and MX Gold Corp., signed a confidential mutual release”. As a result, MX Gold no longer has any rights,ownership interests, liabilities, or obligations associated with the Magistral Project, and GracePoint Mining Corp. owns 100% of the Magistral project in Sinaloa.  

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

On the image above, plagioclase lined epidote patches and veinlets in andesitic volcanic rocks in  Jalisco. Picture by Jorge Cirett.

Highlights on the Fifth Week of August, 2017. Mineral Exploration in Mexico

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During the 35th week of the year (August 28th to September 3rd, 2017), at least 20 press releases were announced by companies working in Mexico, including three quarterly financial reports. ON MEXICO ISSUES, no relevant news. ON EXPLORATION, in Sonora, Alix released drilling results from its Electra property in Sonora. ON MINING, Maverix Metals and Santacruz Silver and Southern Silver reported second quarter 2017 financial results. Telson Resources initiated underground mining at Campo Morado in Guerrero. ON FINANCING, VVC Exploration, Colibri and Southern Silver announced the opening or closure of financing rounds for CA$1 M, $1.2 M and $468 K respectively. Marlin Gold withdrew $7 M from its loan facility with Wexford during July and August. Goldgroup Mining amended a credit line with Credipresto. ON RESOURCES AND DEVELOPMENT, VVC Resources initiated a drilling program in Samalayuca, Chihuahua. Sierra Metals released high-grade results from drilling at Cusi, in Chihuahua. Kootenay Silver released drilling results from La Cigarra, also in Chihuahua. Silver Bull is starting an underground drilling campaign at Sierra Mojada, Coahuila. Endeavour Silver released drilling results from Guanacevi, Durango. Mx Gold intends to begin processing of the Magistral del Oro tailings in Durango by the fourth quarter 2017. Geologix is working on the goal of expanding the resource at Tepal, Michoacan. ON DEALS AND CORPORATE ISSUES, VVC Exploration signed a LOI on the La Tuna property in Sinaloa.

ON MEXICO ISSUES

  • No Relevant News.

ON EXPLORATION

  • Alix Resources Corp. completed, in partnership with Lithium Australia, 1,762 m of RC drilling on 16 holes on its Electra project in the Agua Fria property in Sonora. The program resulted in the discovery of the West Flank zone, which is 25-50 m thick and extends for nearly 2.5 km. Results include 82 m @ 938 ppm Li; 75.0 m @ 966 ppm Li; 30.0 m @ 917 ppm Li; 33.0 m @ 991 ppm Li; 57.0 m @ 719 ppm Li; 45.0 m @ 816 ppm Li; 90.0 m @ 904 ppm Li.

ON MINING

  • Telson Resources Inc. has commenced underground mining operations at Campo Morado in Guerrero. Plans are to accumulate up to 80,000 tons to support the initial start-up of the flotation mill. “The initial processing is planned to commence at approximately 1000 tons per day and will slowly be ramped up to the mill’s ultimate capacity of 2,500 tonnes per day.”
  • Maverix Metals Inc. announced financial results for the second quarter 2017. The royalty and streaming company, which has a NSR from gold production from Pan American Silver’s La Colorada mine in Zacatecas, had a revenue of CA$4 M, with average cash cost per attributable AuEq ounce of CA$187. The company has a current cash balance of CA$32 M.
  • Santacruz Silver Mining Ltd. reported financial and operating results for the second quarter of 2017. The company owns the Veta Grande and Rosario projects in Zacatecas and San Luis Potosi, respectively; producing 270.7 K AgEq Oz at cash cost $21.24 per AgEq Oz and all-in sustaining cost (AISC) of $24.62 per AgEq Oz during the period. Santacruz disposed of its interests in the Gavilanes, San Felipe and El Gachi projects for proceeds of $19.14 M, settling debt to JMET and LLC for $7.36 M and making payments to the underlying vendors of the properties for $3.48 M. The company also entered into the Membrillo property agreement to augment mineralized feed to the Rosario mill.
  • Marlin Gold Mining Ltd. announced its financial results for the second quarter 2017. During the period the company produced 8,785 Oz Au at its La Trinidad mine in Sinaloa, selling 9,825 Oz Au. Currently the company has cash and finished gold account for $2.6 M, $1.7 M of finished gold and $14.2 M of gold-in-process. “Investments in shares of Golden Reign Resources Ltd. stood at $8.7 million at quarter end”.

ON FINANCING

  • VVC Exploration Corp. has opened a non-brokered private placement for up to CA$1 M (Samalayuca, Chihuahua).
  • Colibri Resource Corp. announced a non-brokered private placement intending to raise up $1.2 M (Pitaya and Pilar, Sonora).
  • Marlin Gold Mining Ltd. informed on its second quarter report that during July and August the company received US$2 M and US$5 M respectively from the Wexford loan facility, increasing the Wexford loan to US$37 M (La Trinidad, Sinaloa).
  • Goldgroup Mining Inc. announced the amendment of its outstanding loan facility from Credipresto SAPI de CV SOFOM ENR. Javier Reyes, a director of Goldgroup, is an executive officer and director at Credipresto. The aggregate outstanding balance (15% interest per annum) is now US$627 K, with the available credit set at US$1.5 M, of which US$1 M is intended to be drawn shortly. Three and a half million warrants (on Goldgroup shares) were issued to Credipresto (Cerro Prieto, Sonora).
  • Southern Silver Exploration Corp. closed the second tranche of its previously announced private placement, with gross proceeds of $468 K. The private placement was comprised of a brokered and non-brokered component. Gravitas Securities received a cash fee of $42.2 K and 105.6 K options. The proceeds are to be used on the continuing exploration of the Cerro Las Minitas property in Durango.

ON RESOURCES AND DEVELOPMENT

  • VVC Exploration Corp. started a diamond drilling program on its Samalayuca copper project in Chihuahua. The 3,000 m program is focusing on the area of the La Gloria open pit, mined by Gambusinos in the 1960’s. A recently completed magnetic survey is backing the location site for 15 inclined holes that are to be 100 to 300 m in length.
  • Sierra Metals Inc. presented results from the expanded 14,000 m drilling program on 22 holes completed at the Santa Rosa de Lima zone within its Cusi property in Chihuahua. Intercepts include >3.8 m @ 287 g/t Ag, 0.1% Pb, 0.1% Zn; >4.5 m @ 401 g/t Ag, 0.1% Pb, 0.2% Zn; >4.0 m @ 205 g/t Ag, 2.4% Pb, 3.1% Zn; >13.8 m @ 465 g/t Ag, 0.5% Pb, 0.3% Zn; >4.7 m @ 172 g/tAg, 5.3% Pb, 5.1% Zn. The average grade and true width of infill intercepts is 343 g/t AgEq over 3.63 m, with the step-out holes extending the known mineralization zone to 1.7 km along the 12 km long Santa Rosa de Lima structure.
  • Kootenay Silver Inc. disclosed results from the last drill hole to extend the recently discovered Las Venadas zone within its La Cigarra property in Chihuahua. The hole is 140 m northeast from the last hole, intercepting 7.0 m @ 169 g/t Ag; 12.0 m @ 121 g/t Ag; 24.2 m @ 93 g/t Ag. “The strength and intensity of brecciation, veining and alteration observed in hole CC-17-28 is consistent with discovery hole CC-17-26, which bottomed in veining. Textures are indicative of a variant of an epithermal hydrothermal breccia complex”.
  • Silver Bull Resources Inc. started a 2,000 m underground diamond drill program targeting the recently identified zone of high grade sulfide mineralization at its Sierra Mojada project in Coahuila. The program is to be carried out by the company owned Termite drill rig, capable of drilling up to 100 m of HQ size diamond core.
  • Endeavour Silver Corp. released drilling results extending high-grade mineralization along strike on the Santa Cruz vein and on a newly discovered splay named the La Negra vein, on its Guanaceví mine in Durango. Highlighted true width intercepts: 2.0 m @ 0.4 g/t Au, 259 g/t Ag (on La Negra vein); 2.9 m @ 0.5 g/t Au, 260 g/t Ag; 2.6 m @ 0.3 g/t Au, 334 g/t Ag; 1.9 m @ 0.5 g/t Au, 324 g/t Ag; 3.4 m @ 0.7 g/t Au, 786 g/t Ag; 1.3 m @ 0.4 g/t Au, 397 g/t Ag; 1.9 m @ 0.8 g/t Au, 357 g/t Ag; 1.2 m @ 1.7 g/t Au, 618 g/t Ag.
  • MX Gold Corp. announced in its JV with GracePoint Mining Corp. the project completion and production commencement by the fourth quarter of 2017 on its Magistral del Oro tailing s project in Durango. “…includes a fully permitted, 500 tonne-per-day dynamic cyanide countercurrent system plant constructed in 2013 and tailings containing a historic estimate of 1.25 million tonnes averaging 2.06 grams per tonne gold.”
  • Geologix Explorations Inc. is re-logging selected drill hole intersections on the South Pit of its Tepal property in Michoacan, trying to determine where the high grade structurally controlled ore lies. Rockchip samples are being collected for assay, and also for alteration and geophysical studies. The work is aimed to expand the economic resource base and make additional discoveries, enhancing the preliminary economic assessment (PEA).

ON DEALS AND CORPORATE ISSUES

  • VVC Exploration Corp. signed a letter of intent with Southern Fuels, Inc. to buy the La Tuna gold property in Sinaloa. To complete the acquisition, due diligence work is being carried out, and a formal purchase and sale agreement needs to be negotiated, with a first payment to be made during September 2017.

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 below, Cananea and the Buenavista del Cobre mine as seen from the North. Photo by Jorge Cirett.

 

Cananea Pano5