Mapping

Minera Alamos Continues to Expand Mineralization At Santana Gold Project, Sonora, Mexico

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2020-06-10-nr-mai-inin220ghtwa

Minera Alamos Inc. (the “Company” or “Minera Alamos”) (TSX VENTURE:MAI) is pleased to report additional drill results from its Phase 2 drill program at the Santana gold project in Sonora, Mexico.  Phase 2 was completed over the past year and was initiated as a follow-up to the Company’s first drill program at Santana during the 2018/19 period.  These new holes were designed primarily to test the northern limits of the Nicho main zone and to continue to evaluate the potential for further extensions of the known mineralization to the south and southwest. The successful results from the program, which are highlighted in Table 1 below, further expands mineralization to the southwest and confirms the depth potential previously identified in hole S20-134 (see news release of April 30, 2020).

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

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Phyllic alteration

By Miguel A Heredia

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

ON MEXICO ISSUES

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

ON EXPLORATION

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

ON MINING

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

ON FINANCING

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

ON RESOURCES AND DEVELOPMENT

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

ON DEALS AND CORPORATE ISSUES

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

ON SOCIAL RESPONSIBILITY

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

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

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

 

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

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Bladed calcite in an epithermal vein system

By Miguel A Heredia

During the nineteen week of the year (May 4th to May 10th, 2020), at least 45 press releases were announced by companies working in Mexico, with eleven communicating production and financial results, seven announcing financing rounds, seven disclosing deals and corporate issues, six reporting on resources and developments, six discussing issues on social responsibility, five commenting on Mexican issues, and three informing on exploration results.  ON MEXICO ISSUES, Americas Gold and Silver reported that its Cosalá operation in Sinaloa continue to be illegally occupied. The General Direction of Mines announced that all mining procedures were suspended until May 30, 2020. Peñoles concluded the construction of its Capela mine in Guerrero with a total investment of USD $334M, of which USD $83.9M were exercised in 2019. Gold mining companies in Mexico are preparing for a solid second semester. ON EXPLORATION, In Sonora, Ridgestone announced that it has completed the first three holes of its ongoing 1,500m drill program at its Rebeico Au-Cu project and Aztec provided an updated 2020 strategic plan and outlook on its Cervantes project. In Chihuahua, Radius reported rock chip sampling results from its recently acquired Plata Verde project.   ON MINING, Avino, Endeavour, GoGold, Gold Resource, Golden Minerals, Great Panther, Hecla, Newmont, Pan American, Premier, and Torex reported production and financial results from their Mexican mining operations. ON FINANCING, Americas Gold and Silver entered in a bought deal public offering for net proceeds of approximately CAD $25M (Cosalá mine, Sinaloa). Fortuna Silver announced proposed amendments to financial covenants contained in its USD $150M credit facility (San Jose mine, Oaxaca). GR Silver entered firstly into a bought deal brokered private placement to raise aggregate gross proceeds of $6,021,000, and later the company upsized it to $8.1M (San Marcial and Plomosas projects, Sinaloa). Minaurum announced a private offering to raise up to CAD $5M (Alamos Silver project, Sonora).    Mithril announced that it is conducting a capital raising by way of a non-renounceable rights issue to shareholders for a minimum gross proceeds of A $1.5M and a maximum of A $2.46M (Copalquin project, Durango). Magna Gold entered into an amendment to include the closing of a non-brokered private placement for gross proceeds of a minimum of $1.8M and a maximum of $2M (San Francisco mine, Sonora).   ON RESOURCES AND DEVELOPMENT, Discovery Metals released results from eight diamond drill holes collared at its Cordero project in Chihuahua. GR Silver announced historical drilling results from its Plomosas Silver project and provided an update on its ongoing exploration program at its San Marcial project, both located in Sinaloa. Golden Minerals completed PEA´s for its Rodeo and Velardeña projects in Durango. ON DEALS AND CORPORATE ISSUES, Agnico announced election of directors during its annual and special meeting of shareholders (Pinos Altos, Chihuahua). Alio Gold completed the sale of its San Francisco mine in Sonora to Magna Gold. Argonaut and Alio received positive recommendations of its proposed merger announced on March 30, 2020 (El Castillo mine, Durango). Azucar Minerals granted stock options to certain directors, employees and consultants (El Cobre project, Veracruz). Xtierra received TSXV conditional approval for the acquisition of Minera Portree (Bilbao project, Zacatecas). Pan American Silver released its 2019 sustainability report (La Colorada mine, Zacatecas). ON SOCIAL RESPONSIBILITY, Chihuahua Mining Cluster donated MXP $200M to the Mexican Red Cross. Esperanza Silver de México (Alamos Gold), delivered protective overalls to doctors and nurses at the IMSS Regional hospital 1 in Cuernavaca. First Majestic delivered pantries to five Ejidos from the Municipality of Ocampo, Coahuila. Fresnillo plc joined donated medical equipment to hospitals in Sonora. Grupo Mexico, in coordination with the Torreón City Council, delivered 300 pantries and disinfectant products to residents of a neighborhood near its Met-Mex Peñoles metallurgical plant. Minera San Julian (Fresnillo plc), will provide mask to the Municipality of San Julian, Chihuahua. Aura Minerals, in coordination with the municipal authorities of Concepción Del Oro Zacatecas, has helped to implement measures designed to support the communities in this difficult time. Compañia Minera Pangea (McEwen Mining) donated cleaning kits to 109 families of seven communities near of its El Gallo mine in Sinaloa.

ON MEXICO ISSUES

  • Americas Gold and Silver, reported that its Cosalá operation in Sinaloa continue to be illegally occupied and stated that “while the company cannot negotiate with the self-interested representatives of this illegal action, it is optimistic that a legal a legitimate labour representative for its workers will be identified, and the mine will be in a position to re-open after any COVID-19 restrictions are lifted”.
  • The General Direction of Mines, announced that all the mining procedures were suspended until May 30, 2020 due to the COVID-19 pandemia. “For the foregoing, the holders of mining concessions are informed that the obligation to present the report during May to verify the execution of the exploration or exploitation works, in the terms of articles 27, fraction I, 28, 29, 30 and 31 of the Mining Law, and 63 to 66 of its regulations, the term for its presentation is suspended, until May 30, 2020”. The deadline for receipt of the report will be now from June 01, 2020 to June 30, 2020. This postponement was published in the Official Gazette of the Federation and is based on article 28 of the Federal Law of Administrative Procedure.
  • Peñoles Group, finalized the construction of its Capela mine in Guerrero with a total investment of USD $334M, of which USD $83.9M were exercised in 2019. This new unit has a grinding and processing capacity of 4,500 tons of ore per day, to produce an annual average of 4.7M Oz Ag, 89.6M Lb Zn, 19.3M Lb Pb, and 15.7M Lb Cu contained in Pb, Zn, and Cu. It will also generate a total of 650 jobs.
  • Gold Mining companies in Mexico, are preparing to reactivate their activities after quarantines applied by the government to achieve profitable production amid the multi-year records that commodity prices have broken. The timing and success of reactivations will largely depend on the evolution of the pandemic. As operations could resume in May, the mines are in good shape to take advantage of healthy yellow metal prices, although social distancing measures are likely to affect productivity and costs.

ON EXPLORATION

  • Ridgestone Mining Inc., announced that it has completed 435.7m on the first three holes of the ongoing 10 holes, 1,500m diamond core drilling program at its Rebeico Au-Cu project in Sonora. The three first holes were collared at the New York Zone where high grade Au-Cu mineralization has been sampled on surface. All holes present visible sulphide mineralization. Assay results are pending and will be released when available.
  • Aztec Minerals Corp., provided an updated 2020 strategic plan and outlook on its Cervantes project in Sonora. During Q2, 2020 the company plans to finalize the JV agreement with Kootenay Silver, finalize the interpretation of 3-D geophysics conducted in 2019, and advance exploration on near surface oxide Au mineralization and deeper porphyry sulphide Au-Cu targets. In Q3, 2020, Aztec plans to extend detail mapping and sampling of the Purisima West, Estrella, Jacobo, Brazil, and other targets at its Cervantes project, and plan and obtain permits for phase 2 drilling program on its California and Purisima targets. In Q4, 2020 the plan is to commence phase 2 drilling program on these two targets.
  • Radius Gold Inc., reported results of 35 rock chip samples collected at its recently acquired Plata Verde project in Chihuahua. Highlights include 142g/t Ag over 64m at Mina Mojonera, including 350 g/t Ag over 12m. “At Plata Verde, Ag mineralization occurs as massive to crustiform banded barite calcite with Ag chlorides, sulphosalt minerals and native Ag infilling and cementing fractures and breccia within a basaltic/andesite extrusive volcanic”. At Mina Real, located 150m south of Mina Mojonera, 75 rock chip samples were collected from the walls and remaining pillars with Ag grades varying from 8 and 730 g/t Ag, with an average grade of 276 g/t Ag. Minas Mojonera and Real define a zone of Ag mineralization approximately 550m long by 200m wide, with the south portion apparently displaced by a large fault, and largely covered by post-mineral rhyolite ignimbrites. Radius is planning to run an airborne magnetic survey to help define the extension of the host rocks under cover.

ON MINING

  • Avino Silver & Gold Mines Ltd., released Q1, 2020 production and financial results from its Avino mine in Durango. It processed 164,096 tonnes of 0.4 g/t Au, 57 g/t Ag, and 0.57% Cu to produce 1,531 Oz Au, 267K Oz Ag and 1.8M Lb Cu (684K Oz AgEq), with metallurgical recoveries of 73%, 89%, and 86% respectively, at cash cost of USD $9.83, and AISC of USD $14.88 per Oz AgEq payable.  The company reported revenues of USD $7.12M, mine operation income of USD $843K, cash of $6.7M, working capital of USD $1075M, an EBITDA and adjusted EBITDA of USD $372K  and USD $391K respectively.
  • Endeavour Silver Corp., presented consolidated production and financial results from its Guanacevi mine in Durango, Bolañitos mine in Guanajuato, and El Compas mine in Zacatecas. Endeavour produced 857.7K Oz Ag and 8,476 Oz Au for 1.5M Oz AgEq at an 80:1 Ag: Au ratio or 1.8M Oz AgEq at 110:1 ratio. Cash cost of $7.85 and AISC of $18.38 per Oz payable Ag, both net of Au credits. The company reported an income of $21.9M from the sale of 665.5K Oz Ag and 7,454 Oz Au at average realized prices of $15.33 per Oz Ag and $1,633 per Oz Au.
  • GoGold Resources Inc., reported Q1, 2020 production and financial results from its Parral Tailings project, Chihuahua. It processed 367K tonnes to produced 601K Oz AgEq, at cash cost of USD $12.33 and AISC of USD $15.10 per Oz AgEq. GoGold reported an income of $USD $8.6M, and cash of USD $19.1M.
  • Gold Resource Corporation, announced Q1, 2020 production and financial results from its Oaxaca mining unit, Oaxaca. The company milled 174.5K tonnes to produce 6,450 Oz Au, 402.5K Oz Ag, 1.1M Lb Cu, 5.6M Lb Pb, and 13.1M Lb Zn, at cash cost of $918 and AISC of $1,229 per Oz AuEq sold.
  • Golden Minerals Company, announced its financial results for the period Q1, 2020. The company reported revenue of USD $1.2M and net operating margin of USD $0.6M related to the lease of its oxide plant. It also reported cash and cash equivalents balance of USD $ 2.2M.
  • Great Panther Mining Limited, released Q1, 2020 consolidated production and financial results from its Topia, Durango and Guanajuato mine complex, Guanajuato. The company milled 68,965 tonnes of 318 g/t AgEq.
  • Hecla Mining Company, reported Q1, 2020 production and financial results from its San Sebastian mine in Durango. Hecla produced 346,625 Oz Ag and 2,802 Oz Au, at cash cost of $6.91 and AISC of $9.59 per Oz Ag produced.
  • Newmont Corporation, produced 87K Oz Au at AISC of $769 per Oz Au sold, or 288K Oz AuEq at AISC of $841 per Oz AuEq sold.
  • Pan American Silver Corp., presented Q1, 2020 production and financial results from its La Colorada mine in Zacatecas and Dolores mine in Chihuahua. At La Colorada, Zacatecas the company produced 1.6M Oz Ag and 1.1K Oz Au, at cash cost of USD $7.23 and AISC of USD $9.98 per Oz Ag produced. At Dolores, Chihuahua it produced 1.23M Oz Ag and 27.1K Oz Au, at AISC of USD $23.29 per Oz produced.
  • Premier Gold Mines Limited, released Q1, 2020 production and financial results from its Mercedes mine in Sonora. Premier milled 162,408 tonnes of 2.4 g/t Au and 27 g/t Ag to produce 11,587 Oz Au and 52.2K Oz Ag, with metallurgical recoveries of 93.9% and 37.1% respectively, at cash cost of USD $1,282 and AISC of 1,883 per Oz Au per Oz Au sold.
  • Torex Gold Resources Inc., reported Q1, 2020 production and financial results from its El Limon Guajes mining complex in Guerrero. It produced 108.5K Oz Au at cash cost of $794 and AISC of $975 per Oz Au sold. Torex reported an EBITDA and adjusted EBITDA of $39.4M and 67.4M respectively, and cash flow from operations of $29.5M.

ON FINANCING

  • Americas Gold and Silver Corporation, announced a bought deal public offering for gross proceeds of approximately CAD $25M (Cosalá mine, Sinaloa).
  • Fortuna Silver Mines Inc., provided an update to amend the financial covenants contained in its USD $150M credit facility. The credit facility requires the company to maintain a total debt to EBITDA ratio of not greater than3:1. As of the financial year ended December 31, 2019, the total debt to EBITDA ratio was 1.7:1. Fortuna has entered into discussions with its senior lenders under the credit facility, and obtained agreement in principle to amend the financial covenants. The amendment to the credit facility is subject to the completion of definitive documentation between the parties (San Jose mine, Oaxaca).
  • GR Silver Mining Ltd., entered into a bought deal brokered private placement with a syndicate of underwriters for aggregate gross proceeds of $6,021,000. The company also granted the underwriters an option to purchase more stock for additional gross proceeds of $903,150. Later on, the company upsized it to $8.1M (San Marcial and Plomosas projects, Sinaloa).
  • Minaurum Gold Inc., announced a private offering to raise gross proceed up to CAD $5M. Net proceeds will be used for the exploration of its Alamos Silver project in Sonora and for working capital purposes.
  • Mithril Resources Limited, announced that it is conducting a capital raising by way of a non-renounceable rights issue to shareholders for a minimum gross proceeds of A $1.5M and a maximum of A $2.46M. Net proceeds will be used primarily to advance exploration at its Copalquin project in Durango.
  • Magna Gold Corp., entered into an amendment to include the closing of a non-brokered private placement for gross proceeds of a minimum of $1.8M and a maximum of $2M. Net proceeds will be used for the acquisition of, and for working capital purposes in connection with the San Francisco mine, Sonora.

ON RESOURCES AND DEVELOPMENT

  • Discovery Metals Corp., released results from eight diamond drill holes collared at its Cordero project in Chihuahua. Goal of these holes was to define and extend the higher-grade mineralized footprint to the NE and SW of the Pozo de Plata zone. Significant drill intersections were encountered in hole C20-319 with 0.1 g/t Au, 70 g/t Ag, 1.5% Pb, and 1.9% Zn (207 g/t AgEq) over a width of 168.8m, including 0.2 g/t Au, 103 g/t Ag, 2.2% Pb, and 4.4% Zn (378 g/t AgEq) over 27.7m; and hole C20-317 with 0.22 g/t Au, 90 g/t Ag, 0.9% Pb, and 0.5% Zn (159 g/t AgEq) over 79m. 48 holes totaling 17,500 m have been completed to date at Cordero to understand the high-grade footprint. Assays from 16 holes are pending. All holes have been drilled roughly perpendicular to the main structural north-east trend of higher-grade mineralization.
  • GR Silver Mining Ltd., announced historical drilling results from its Plomosas Silver project and provided an update on its ongoing exploration program at its San Marcial project, both located in Sinaloa. At Plomosas, in San Juan Area, highlights include hole LRD-46 with 0.13 g/t Au, 198 g/t Ag, 1.7% Pb, and 0.5% Pb (261 g/t AgEq) over a true width (TW) of 6.4m, including 0.13 g/t Au, 404 g/t Ag, 0.7% Pb, and 0.3% Zn (444 g/t AgEq) over a TW of 3m; hole LRD-54 with 0.4 g/t Au, 821 g/t Ag, 7.4% Pb, and 4.5% Zn (1,304 g/t AgEq) over a TW of 2m; hole SJD-17 with 0.43 g/t Au, 521 g/t Ag, 4.6% Pb, and 1.6% Zn (705 g/t AgEq) over a TW of 1.9m; and hole SJD-10 with 0.8 g/t Au, 574 g/t Ag, 1.6% Pb, and 0.7% Zn (675 g/t AgEq) over a TW of 2.7m. “GR Silver Mining continues its review and validation of more than 500 surface and underground drill holes on all six zones, aiming to confirm additional multiple vein systems hosted in a set of regional high angle fault zones and shallow dipping younger regional faults”. At San Marcial project, it obtained positive initial Au results from channel sampling at two new targets including 28.94 g/t Au and 143 g/t Ag over 0.2m, and 6.81 g/t Au over 0.2m. It also completed the work to widen 170m an existing tunnel to reach the breccia-hosted high-grade mineralization. GR also commented that with all the accumulated data generated it has generated at least eight drill-ready targets to test.
  • Golden Minerals Company, completed PEA´s for its Rodeo and Velardeña projects in Durango. At Rodeo, the PEA shows a pre-tax NPV (8% discount rate) of USD $24.4M with a low start-up cost of USD $1.5M. Pending receipt of mining permits, mining and processing is planning for Q1, 2021. At Velardeña, the PEA shows a pre-tax NPV (8% discount rate) of USD $85.9M based on incorporating bio-oxidation processing as the key to achieving robust project economics. No development decision has been made with regard to this project.

ON DEALS AND CORPORATE ISSUES

  • Agnico Eagle Mines Limited, announced the election of directors during its annual and special meeting of shareholders (Pinos Altos, Chihuahua).
  • Alio Gold Inc., completed the sale of its San Francisco Mine in Sonora to Magna Gold Corp. Under the terms of the agreement, Timmins GoldCorp Mexico S.A. de C.V., a subsidiary of Alio Gold, received 9.74M of common shares of Magna and will receive USD $5M in cash (or a 1% NSR royalty in respect of the San Francisco Mine, if the cash payment is not made by Magna) within twelve months.
  • Argonaut Gold Inc., and Alio Gold Inc., received positive recommendations of its proposed merger announced on March 30, 2020. Argonaut and Alio shareholders of record at the close of business on March 30, 2020 and April 14, 2020 respectively are eligible to vote their common shares (El Castillo mine, Durango).
  • Azucar Minerals Ltd., announced it has granted stock options to certain directors, employees and consultants of the company to purchase an aggregate 425K common shares at a price of $0.11 per share (El Cobre project, Veracruz).
  • Xtierra Inc., received conditional approval for the acquisition of 87.99% interest of Minera Portree de Zacatecas S.A. de C.V. , for the amount of CAD $56K in cash less a deposit of CAD $26K previously paid, the remaining CAD $30K is payable in installments subject to certain milestones, and the issue to the vendor of 2M common shares of the company at a deemed value of CAD $0.05 per share. The TSXV has provided conditional approval of the acquisition which requires completion of legal documentation in Mexico (Bilbao project, Zacatecas).
  • Pan American Silver Corp., released its 2019 sustainability report, which includes details on Pan American’s environmental, social, governance (“ESG”), and health and safety performance.

ON SOCIAL RESPONSIBILITY

  • The Chihuahua Mining Cluster, donated MXP $200M to the Mexican Red Cross, which will be used to acquire the paramedics ´personal protection equipment to face the COVID-19 pandemic. The president of the Chihuahua Mining Cluster recognized the commitment of all mining units and suppliers belonging to the cluster for showing solidarity with its employees and with the communities, and declared that the mining industry has had to fight against the onslaught of the pandemic, since despite not having been considered an essential industry and being forced to close all its operations.
  • Esperanza Silver de México (Alamos Gold), delivered protective overalls to doctors and nurses at the IMSS Regional hospital 1 in Cuernavaca. This action was in addition to the previous delivery of KN95 masks and gloves that the mining company carried out at the Regional 1 hospitals of the IMSS, the ISSSTE Family Clinic in Cuernavaca, the Regional of Temixco and José G. Parres de Cuernavaca.
  • First Majestic Silver Corp., through its personnel of La Encantada mine in Coahuila, delivered pantries to five Ejidos from the Municipality of Ocampo. Personnel of the company prepared packages with items from the basic food basket that were delivered to the peasant families, house by house, in support of the health contingency by COVID-19. The local authorities appreciated the help of the mining company and other companies and social organizations that have brought support and health and humanitarian aid to the inhabitants of Ocampo.
  • Fresnillo plc, donated 2,000 covers, 40 gallons of disinfectant gel and 400 N95 masks to the hospitals of Zone No. 8 of the IMSS and General of the State of Sonora, in the city of Caborca, in support and recognition of the hard work carried out by the staff of these institutions.
  • Grupo Peñoles, in coordination with the Torreón City Council, donated 300 pantries and disinfectant products, for the benefit of residents of the Vicente Guerrero neighborhood, Torreón, near its Met-Mex Peñoles metallurgical plant.
  • Minera San Julián (Fresnillo plc), will provide mask to the Municipality of San Julian, Chihuahua. The production of mouth masks will be in charge of a community company in the town of Yerbitas, which was hired by Minera San Julián to contribute to the support of sanitary guidelines to face the COVID-19 pandemic. The mining company is also helping to generate employment and strengthen the local economy.
  • Aura Minerals Inc., in coordination with the Municipal Authorities of Concepción del Oro Zacatecas, has helped to implement measures designed to support the communities in this difficult time such as screening checkpoint for all those entering the city, contracting the local workforce to produce additional face masks for ongoing essential activities, providing canteens, transportation vehicles and health questionnaires, facilitating temperature scanning and the use of screening checkpoints, hiring additional medical personnel and supplying COVID-19 test kits.
  • Compañia Minera Pangea (McEwen Mining), donated cleaning kits to 109 families (354 persons) of seven communities near of its El Gallo mine in Sinaloa.

 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, bladed calcite in a low sulphidation epithermal vein system in a prospect in Sonora, Mexico.  Photo by Miguel A Heredia.

Canasil Outlines Initial Drill Plans to Test Silver-Gold Targets at the Nora Project in Durango State, Mexico, and Provides Update on COVID-19 Measures

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Canasil_29042020

Vancouver, April 29, 2020 – Canasil Resources Inc. (TSX-V: CLZ, DB Frankfurt: 3CC, “Canasil” or the “Company”) outlines plans for an initial core drill program to test silver-gold-copper-zinc-lead targets along the Candy vein at the Nora project in north-central Durango State, Mexico. Drilling should begin after the lifting of the COVID-19 restriction in Mexico.

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

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Cervantite crystals in jasperoids

By Miguel A Heredia

During the seventeen week of the year (April 20th to April 20th, 2020), at least 41 press releases were announced by companies working in Mexico, with ten discussing issues on social responsibility, six informing on exploration results, six, commenting on Mexican issues, six announcing financing rounds, five communicating production and financial results, four disclosing deals and corporate issues and four reporting on resources and developments.  ON MEXICO ISSUES, The Mexican Federal Government has ordered an extension of the suspension of non-essential activities in Mexico until May 30, 2020 in response to COVID-219 pandemic. Firms affiliated to the Mexican Mining Chamber joined to fight against the COVID-19 pandemic.  The Secretary of Economic Development of the State of Colima requested the release of the Mining Fund to face contingency caused by COVID-19 pandemic. The Government of Mexico ordered to paralyze the mining sector from March 30 to May 30, not considering it an essential activity. The Secretary of Tax Administration (SAT) owes USD $1B to mining companies operating in Mexico. A senator of the MORENA party promotes that mining to be considered essential activity. ON EXPLORATION, In Sonora, Riverside defined high-grade targets and received drill permits for its Los Cuarentas project, and Silver Viper reported high-grade drilling results from its La Virginia project. In Chihuahua, Consolidated Zinc identified widespread Au with high-grade potential at its Plomosas project. In Sinaloa, Oroco filed a revised technical report on its Santo Tomas project. In Jalisco, GoGold released results from twelve drill holes collared at its Los Ricos project. In Guanajuato, VanGold announced it is planning its 2020 campaign to advance its El Pinguino project.   ON MINING, Consolidated Zinc suspended operation since April 6, 2020 at its Plomosas mine in Chihuahua due to the COVID-19 pandemic and expects to restart activities on varying dates from May 01 to May 31, based on the pandemic status in their location. Gold Resource reported Q1, 2020 production results from its El Aguila mine in Oaxaca.  Premier Gold reported Q1, 2020 production results from its Mercedes mine in Sonora. Santacruz Silver suspended operations at its Zimapan mine in Hidalgo due to COVID-19 pandemic. ON FINANCING, Aloro reported the cancelation of its previously announced non-brokered private placement (Los Venados, Sonora). Golden Minerals entered into a definitive agreement with some investors to raise approximately $3M (Velardeña project, Durango). One World Lithium announced a non-brokered private placement for gross proceeds of up to $1M (Salar del Diablo project, Baja California Norte). SilverCrest closed a non-brokered private placement with SSR Mining for gross proceeds of CAD $27M (Las Chispas, Son). SSR Mining secured CAD $0.5M gain from exercise of Silver Crest equity participation right. Consolidated Zinc announced its plan to raise funds for approximately $1.7M.  ON RESOURCES AND DEVELOPMENT, Capstone released results from five infill and twenty two step-out drill holes collared at its Cozamin mine in Zacatecas. GR Silver announced historical drilling results from its Plomosas Silver project in Sinaloa. Consolidated Zinc reported high-grade drilling and channel sample results as part of its inferred to indicated category conversion resources at its Plomosas mine in Chihuahua. Prime Mining announced results from new surface trenches and road cuts on its Los Reyes project in Sinaloa. ON DEALS AND CORPORATE ISSUES, One World Lithium renewed the agreement with its IR consulting firm and granted them with stock options.  Excellon announced the acquisition of Otis Gold (Platosas mine, Durango). Argonaut and Alio announced its plan to merge and create a diversified intermediate producer in North America (El Castillo mine, Durango). Great Panther announced changes to its board of directors and senior management team (Topia mine, Durango). ON SOCIAL RESPONSIBILITY, Argonaut Gold implemented a sanitation campaign in public spaces, local businesses, offices, homes and streets in the La Colorada community, in Sonora. Bylsa Drilling and SilverCrest provided support and raised awareness in the Rio Sonora community about the importance of being aware and taking the necessary measures to prevent the spread of COVID-19. Esperanza Silver delivered pantries to local communities and protection equipment to doctors and nurses in Cuernavaca and Temixco communities in Morelos state. In Zacatecas, two new water wells were put into operation with resources from the Mining Fund. Minera Peñasquito donated supplies to local hospitals where it is operating and delivered 1,000 pantries in Mazapil to adults over 60 years of age, pregnant women and people with disabilities from 25 communities neighboring their mining operation.  Minera San Xavier (New Gold Inc.) continued the donations of medical material In the face of the health emergency caused by the COVID-19 pandemic. Orbia (former Mexichem) announced that it will donate 50,000 inhalers to the Mexican Institute of Social Security (IMSS), in the face of the health emergency caused by the COVID-19. Grupo México donated MXP $1.3M and equipment for Red Cross rescuers of Hermosillo, Sonora to face the health contingency experienced in the state. Pan American donated 900 pantries to the local communities around its La Colorada and Dolores mines, located in Zacatecas and Chihuahua respectively.

ON MEXICO ISSUES

  • The Mexican Federal Government, ordered an extension of the suspension of non-essential activities in Mexico until May 30, 2020 to combat the spread of the COVID-19 virus. The directive provides for a potential re-start of operations following May 18, 2020 for operations located in municipalities exhibiting low, or no, cases of COVID-19. Mining companies operating in Mexico are aligned with this decree and will be evaluating zones with the least COVID-19 impact for potential earlier start-up.
  • The Mexican Mining Chamber, announced that their affiliated firms have jointed to fight together against the COVID-19 pandemic. The mining industry has implemented very strict Health and Prevention Protocols in each of its operations since the declaration of the pandemic by the World Health Organization (WHO). The companies affiliated to the Mining Chamber of Mexico have communicated to the authorities that if they allowed continuity they would be unable to operate with less than 50% of the personnel in the field, under the health conditions dictated by the national authorities and applied by international good practices. Mining reaffirms its commitment to the more than 690 communities that host its operations, by implementing joint actions for the care and well-being of its inhabitants and collaborators. 110 joint actions have been carried out with authorities.
  • The Secretary of Economic Development of the State of Colima, requested the release of the Mining Fund to face the contingency caused by the CIVID-19 pandemic and strengthens companies to retain jobs. During the dialogue, the progress made on the commitments made by the State Government in the first extraordinary session was also announced, including tax benefit packages, financial support to companies and the implementation of the Emergent Food Assistance Program.
  • The Government of Mexico, ordered to paralyze the mining sector from March 30 to May 30, not considering it an essential activity. However, mining companies are working to bring health to the regions where they operate. On April 20, the Mining Chamber of Mexico(CAMIMEX) issued a report on the actions in favor of public health undertaken by 29 mining groups affiliated with the Chamber, which they represent 85% of the national mining production and generate around 379,000 direct jobs. Likewise, these mining companies have 182 paramedics, 123 doctors and 74 nurses available to the mining communities, and have a presence in 212 municipalities in Mexico, where they operate. 442 medical units, have 3,362 beds for hospital care, and have supported 10,657 people. “The mining industry reaffirms its commitment to Mexico by being essential as a supplier of raw materials for industrial chains that produce food, medicine, equipment and medical tools, telecommunications, chemicals, among others”, declared Although the mining sector has always supported health of its collaborators and neighboring communities, today, due to the pandemic coronavirus, mining companies make an extra effort to help Mexican society face this health crisis.
  • The Secretary of Tax Administration (SAT) owes USD $1B in VAT to mining companies operating in Mexico. According to the president of CAMIMEX, it is estimated that “in our sector, close to a billion dollars of VAT have been accumulated that the authority has not returned, which has put the flow of several of them at risk.” This is in addition to the economic consequences of social distancing measures and the cessation of non-essential activities, including mining.
  • A senator of the official MORENA party, has asked to the Senate board of directors to consider mining as an essential activity. He promotes to reactivate the mining sector to counteract the economic and social damages caused by the COVID-19 pandemic.

ON EXPLORATION

  • Riverside Resources Inc., defined high-grade gold targets and received drill permits for its Los Cuarentas project in Sonora. The rock-chip sampling returned anomalous Au > 0.2 g/t on 30% of the samples, with high- grade Au samples including 18 g/t, 12.3g/t, 3 g/t, and 3 g/t.  It also identified three new prospective structures: El Sombrerito, defined by a series of old workings;  El Sombrero Norte, mostly covered  by post-mineral andesites; and Rosalia Norte, defined by  steam heated alteration mineralogy and the presence of silicified rhyolite dikes. Riverside announced that it has received the drill permits from the Sonoran Environmental Agency to support further exploration and drilling at its project.
  • Silver Viper Minerals Corp., released results from seven drill holes collared at its La Virginia project in Sonora. Significant drill intersections were encountered in hole LV20-224 with 3.55 g/t Au and 80 g/t Ag over a true width (TW) of 5.20m, including 8.31 g/t Au and 453 g/t Ag over a TW of 0.74m, including 14.4 g/t Au and 12 g/t Ag over a TW of 0.74m, and 0.56 g/t Au and 21 g/t Ag over a TW of 1.11m; and hole LV20-229 with 0.3 g/t Au and 22 g/t Ag over a TW of 4.55m, and 1.27 g/t Au and 106 g/t Ag over a TW of 0.33m, and 0.84 g/t Au and 13 g/t Ag over 11.05m, including 10.9 g/t Au and 12 g/t Ag over a TW of 0.65m, and 2.47 g/t Au and 65 g/t Ag over a TW of 1.95m, including 5.16 g/t Au and 31 g/t Ag over 0.65m, and 16.8 g/t Au and 31 g/t Ag over a TW of 0.98m, including 43.7 g/t Au and 40 g/t Ag over a TW of 0.33m, including 6.12 g/t Au and 31 g/t Ag over a TW of 00.33m, and 2.73 g/t Au and 49 g/t Ag over a TW of 0.33m. Currently, al, field activities were paused and drill equipment is stored on site awaiting a restart order.
  • Consolidated Zinc Limited, identified widespread Au with high-grade potential at its Plomosas project. During a reconnaissance sampling. Highlighted rock chip results from the La Chona and Enrique areas include 6.21 g/t Au and 8 g/t Ag on a gossan, 4.75 g/t Au and 8 g/t Ag, 3.32 g/t Au and 6 g/t Ag, and 2.32 and 6 g/t Ag on limestone/quartz veining, and 1.45 g/t Au, 6 g/t Ag, and 0.64% Cu and 0.82 g/t Au, 3 g/t Ag, and 0.60% Cu on limestone/Fe-Cu Ox. Additionally, mapping has identified mineralized structures to the north of La Chona and Enrique vein systems, related to a large structural lineament. Results from this program are encouraging and further exploration is planned to develop the interpretation of the mineralized systems. Exploration will continue to focus on the La Chona-Enrique system and along the extensions that occur in the northwest.
  • Oroco Resource Corp., filed a revised technical report on the core concession of its Santo Tomas project in Sinaloa. Key revisions focused on the format and cautionary parameters around the disclosure of historical mineral resource estimates.
  • GoGold Resources Inc., released results from twelve drill holes collared at its Los Ricos project in Jalisco. Significant results were encountered in holes LRGG-20-132 with 0.41 g/t Au and 80 g7t Ag (1.48 g/t AuEq or 111 g/t AgEq) over a width of 49.4m, including 5.42 g/t Au and 865 g/t Ag (16.95 g/t AuEq or 1,271 g/t AgEq) over a width of 3m; and hole LRGG-20-135 with 1.06 g/t Au and 133 g/t Ag (2.82 g/t AuEq or 212 g/t AgEq) over a width of 22.6m, including 1.29 g/t Au and 200 g/t Ag (3.96 g/t AuEq or 297 g/t AgEq) over a width of 11.3m. Drilling at the Los Ricos projects is temporarily suspended due to COVID-19 to ensure the safety of the Company’s employees, contractors, and surrounding communities, in compliance with the Mexican Federal government’s mandate that all non-essential business temporarily suspend activities.
  • VanGold Mining Corp., announced it is planning its 2020 campaign to advance its El Pinguino project in Guanajuato. The Company is actively engaged with three separate initiatives: processing a substantial bulk sample through a local mill, making accessible an additional 30 meters of vertical distance at the bottom of the El Pinguico shaft, and developing a comprehensive drill plan to be initiated in late summer/early fall.

ON MINING

  • Consolidated Zinc Limited, suspended operation at its Plomosas mine in Chihuahua due to the COVID-19 pandemic and expects to restart activities on varying dates from May 01 to May 31, based on the pandemic status in their location. During the enforced closure of the mine and plant since the 6 April 2020 essential services have repaired key equipment, replaced pumps, completed overhauls on generated power supply equipment and maintained e ready to operate when the Mexican Government allows a return to work.
  • Gold Resource Corporation, reported Q1 2020 production results from its El Aguila mine in Oaxaca. It produced 6,450 Oz Au, 402.5K Oz Ag, 1.1M Lb Cu, 5.6M Lb Pb, and 123.1M Lb Zn.
  • Premier Gold Mines Limited, reported Q1 2020 production results from its Mercedes mine in Sonora. It produced 11,587 Oz Au for the period. The production was impacted by the COVID-19 pandemic. The mine was placed into care and maintenance pursuant to the decree from the Mexican Federal Government which took effect March 30, 2020.
  • Santacruz Silver Mining Ltd., suspended operations at its Zimapan mine in Hidalgo until April 30. Subject to government regulations and other health expert input, activities are expected to re-commence on or about May 1, 2020 or at such other date as mandated by Mexican authorities.

ON FINANCING

  • Aloro Mining Corp., reported the cancelation of its previously announced non-brokered private placement due to COVID-19 pandemic and market conditions (Los Venados project, Sonora).
  • Golden Minerals Company, entered into a definitive agreement with some investors to raise funds for approximately $3M. Gross proceeds will be used to advance its Rodeo and Velardeña properties in Durango.
  • One World Lithium, announced a non-brokered private placement for gross proceeds of up to $1M. Gross proceeds will be used to conduct a drilling program at its Salar del Diablo project, Baja California Norte).
  • SilverCrest Metals Inc., closed a non-brokered private placement with SSR Mining for gross proceeds of CAD $27M. Net proceeds will be used to advance its Las Chispas project in Sonora. With this financing, SilverCrest makes a cash balance of CAD $234M in its treasury. In turn, SSR Mining entered into a transaction for resale of the common shares to a corporation beneficially controlled by Eric Sprott.
  • RSS Mining, secured a gain of CAD $0.5M from the exercise of some common shares of SilverCrest to a third party beneficially controlled by Eric Sprott.
  • Consolidated Zinc Limited, announced its plan to raise gross proceeds for approximately $1.7M. Gross proceeds will be used for the exploration of Au prospects at its Plomosas mine in Chihuahua, to repay unsecured loans, and for working capital.

ON RESOURCES AND DEVELOPMENT

  • Capstone Mining Corp., released results from five infill and twenty two step-out drill holes collared at its Cozamin mine in Zacatecas. To date, 177 holes of the 200 program have been completed. The most significant drill intersections were encountered in hole CG-20-S471 with 7.58% Cu, 0.26% Zn, 0.01% Pb, and 113 g/t Ag over a true width (TW) of 5.1m, including 9.61% Cu, 0.32% Zn, 0.01% Pb, and 141 g/t Ag over a TW of 3.7m; hole CG-20-S473 with 5.16% Cu, 0.15% Zn, and 92 g/t Ag over a TW of 5.2m, including 7.38% Cu, 0.21% Zn, and 131 g/t Ag over a TW of 3.4m; hole SG-20-S466 with 3.70% Cu, 0.12% Zn, and 64 g/t Ag over a TW of 7.3m, including 6.16% Cu, 0.19% Zn, and 105 g/t Ag over a TW of 2.9m; hole CG-20-S476 with 5.94% Cu, 0.18% Zn, and 101 g/t Ag over a TW of 3.2m; and hole CG-20-S470 with 4.87% Cu, 0.23% Zn, and 131 g/t Ag over a TW of 16.7m, including 6.95% Cu, 0.40% Zn, and 213 g/t Ag over a TW of 7.2m.
  • GR Silver Mining Ltd., announced historical drilling results from its Plomosas silver project in Sinaloa. The most significant drill results were in hole SD-45 with 26.9 g/t Au, 44 g/t Ag, 1.2% Zn, and 0.1% Pb over a true width (TW) of 1.5m, and 4.7 g/t Au, 12 g/t Ag, 0.5% Zn, and 0.1% Pb over a TW of 12.2m; hole PLI17-01 with 1.7 g/t Au, 7 g/t Ag, 1.0% Zn, and 1.3% Pb over a TW of 18m, including 11.9 g/t Au, 22 g/t Ag, 0.1% Zn, and 0.2% Pb over a TW of 2.1m; and hole SD-10 with 0.8 g/t Au, 26 g/t Ag, 4.8% Zn, and 6.0% Pb over a TW of 50.6m, including 1.9 g/t Au, 65 g/t Ag, 15.7% Zn, and 15.5% Pb over a TW of 13.4m.
  • Consolidated Zinc Limited, reported high-grade channel samples and drilling results as part of its inferred to indicated category conversion resources at its Plomosas mine in Chihuahua. Significant drilling intersections were encountered in hole LV7065 with 24.8% Zn, 8.3% Pb, and 69 g/t Ag over a width of 3.3m; hole LV8023 with 14.2% Zn, 5.4% Pb, and 49 g/t Ag over a width of 5.30m; and hole LV 8025 with 22.5% Zn, 7.5% Pb, and 36 g/t Ag over a width of 3.5m. In addition, 44 channel samples were taken perpendicular to bedding at 2 to 3 m spacing for a total of 97 samples. Significant assays were LV913006 with 43% Zn, 13.5% Pb, and 83 g/t Ag over a true width (TW) of 2.2m; LV913012 with 36.6% Zn, 20.4% Pb, and 139 g/t Ag over a TW of 1.8m; LV907006 with 36.4% Zn, 19.4% Pb, and 80 g87t Ag over a TW of 1.9m; LV907005 with 35.2% Zn, 19.9% Pb, and 80 g7t Ag over a TW of 1.9m; LV907009 with 34.1% Zn, 28% Pb, and 80 g/t Ag over a TW of 1.8m; LV907010 with 32.7% Zn, 23.5% Pb, and 99 g/t Ag over a TW of 1m; and LV913008 with 31.9% Zn, 23.7% Pb, and 92 g/t Ag over a TW of 2.5m.
  • Prime Mining Corp., announced results from new surface trenches and road cuts on its Los Reyes project in Sinaloa. The company will integrate the results into the new resource model. Highlights of the surface trenching sampling are in GW-3750E with 0.83 g/t Au and 20 g/t Ag over 12m; GW-3720E with 0.68 g/t Au and 20 g/t Ag over 4.5m; and GW-3650E with 0.51 g/t Au and 14 g/t Ag over 1.5m. A highlight of the road cut sampling is GW-R51 with 0.49 g7t Au and 22 g/t Ag over 19.5m. The Guadalupe West deposit has been modeled using the previous drilling along with some new trenching and road cut sample data and a pit constrained resource has been estimated (see below table):

ON DEALS AND CORPORATE ISSUES

  • One World Lithium, renewed the agreement with its IR consulting firm and granted them with stock options. It also granted incentive stock options to three consultants of the company to purchase up to 1.1M common shares at a price of $ 0.01 per common share (Salar del Diablo project, Baja California Norte).
  • Excellon Resources Inc., received final court approval of business combination and announced the acquisition of all of the issued and outstanding common shares of Otis Gold Corp. Under the terms of the Arrangement, Otis shareholders will be entitled to receive 0.23 common shares of Excellon in exchange for each common share of Otis held. The goal is to increase the company precious metals exposure from 50% to 90%.
  • Argonaut Gold , and Alio Gold Inc., announced its plan to merge and create a diversified intermediate producer in North America. Under the terms of the Arrangement Agreement, all of the Alio issued and outstanding common shares will be exchanged on the basis of 0.67 of an Argonaut common share per each Alio share (El Castillo mine, Durango).
  • Great Panther Mining limited, announced changes to its board of directors and senior management team (Topia mine, Durango).

ON SOCIAL RESPONSIBILITY

  • Argonaut Gold Inc., implemented a sanitation campaign in public spaces, local businesses, offices, homes and streets in the La Colorada community, in Sonora to prevent the spread of the COVID-19 virus. The mining company, in accordance with federal and state decrees, maintains the temporary closure of its operation and will continue with this emerging program before COVID-19 with other direct social support for the population.
  • Bylsa Drilling and SilverCrest Metals Inc., provided support and raised awareness in the Rio Sonora community about the importance of being aware and taking the necessary measures to prevent the spread of COVID-19. At strategic points in the communities, companies also provided different supplies in the region, including thousands of liters of antibacterial gel, chlorine, and soap powder to disinfect and reduce the impact of COVID-19. The companies also support the elaboration of mouth covers by women from the community, and facilitation of the materials required for their preparation. Another important task was to clean roads to have quick and safe access in case of emergency.
  • Esperanza Silver SA de CV (Alamos Gold Inc.), delivered pantries to families in the communities of Tetlama and Milpillas in the Municipality of Temixco and protection equipment to doctors and nurses in Cuernavaca and Temixco municipalities in Morelos state. The company delivered 600 KN95 masks and 1,200 pairs of gloves.
  • In Zacatecas state, two new water wells were put in operation with resources from the Mining fund. With a contribution of 2.5M liters of water per day, one of the wells will beneficiate 18,000 people. The second well will provide 970K liters of water daily for the benefit of hundreds of families in the most populated area of ​​Guadalupe.
  • Minera Peñasquito, donates 660 boxes, 50 pairs of disposable gloves, 3,600 mouth covers, 3,700 disposable gowns, 4,350 N95 respirators and 66 gallons of antibacterial gel, in five medical instances in the area of ​​influence from Peñasquito, such as the San Juan de Los Cedros UMR, the Salaverna UMR, the Mazapil Clinic, the IMSS Hospital of Concepción del Oro and the Sanitary Jurisdiction 7. The company also donated 1,000 pantries in Mazapil to adults over 60 years of age, pregnant women and people with disabilities from 25 communities neighboring their mining operation. This action aims to support the population of the communities surrounding the mining operation, but above all, create conditions so that the population does not leave their homes and can have the possibilities and follow the recommendations of the health authorities to reduce the contagion by COVID-19.
  • Minera San Xavier (New Gold Inc.), continued the donations of medical material In the face of the health emergency caused by the COVID-19 pandemic. The donation consisted of tyvek type protection coveralls, with complete superior barrier protection, breathability and durability and N95 respirators, masks with a level of filtration recommended by the World Health Organization, with the aim that they are destined for the medical and nursing personnel who work and who will attend cases of COVID 19 in the local hospital.
  • Orbia (former Mexichem), announced that it will donate 50,000 inhalers to the Mexican Institute of Social Security (IMSS), in the face of the health emergency caused by the COVID-19. The relationship of Orbia with the inhalers that are commonly called ventolins is very close, since with the fluoride that is extracted at the Las Cuevas mine in San Luis Potosi, approximately 80% of inhalers around the world are produced. These devices are essential for those who suffer from respiratory conditions such as asthma and chronic obstructive pulmonary disease.
  • Grupo México , donated MXP $1.3M and 300 personal protective equipment for Red Cross rescuers of Hermosillo, Sonora to face the health contingency experienced in the state. The protective equipment consists of suits, N95 masks and goggles.
  • Pan American Silver Corp., donated 900 pantries to the communities of La Magdalena, Canoas, La Libertad y Sombrerete in the municipality of Chalchihuites Zacatecas, as well as in the community of Arroyo Amplio, a community around of its Dolores mine in Chihuahua. The pantries were delivered to elderly people with disabilities and families from vulnerable sectors. Different actions have been carried out with the communities, such as sanitation at the IMSS, which is open to the community. Donation of antibacterial gel, covers mouths, gloves and basic health check-up.

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, cervantite crystals in jasperoid in a mining prospect in Durango, Mexico.  Photo by Miguel A Heredia.

 

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

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Quartz-alunite

By Miguel A Heredia

During the fifteen week of the year (April 06th to April 12th, 2020), at least 30 press releases were announced by companies working in Mexico, with seven communicating production and financial results, six commenting on Mexican issues, five announcing financial rounds, five discussing issues on social responsibility, four disclosing deals and corporate issues, two informing on exploration results, and one reporting on resources and development.  ON MEXICO ISSUES, Mining companies operating in Mexico such as First Majestic, Telson, Torex, Capstone, Coeur, Endeavour, Impact, Hecla, Minera del Norte, and Equinox, have temporarily suspended mining activities at their Mexican operations in accordance with Mexico´s Ministry of Health´s decree to mitigate the spread and transmission of COVID-19. They also have withdrew their 2020 production and cost guidance until further notice due to the uncertainty caused by the COVID-19 pandemic.  ON EXPLORATION, In Sonora, Ridgestone announced that the three first holes of the 1st phase, 10-drill holes program were recently completed at its Rebeico project.  In Chihuahua, Discovery Metals released drilling results from 10 holes collared at its Cordero property. ON MINING, Impact reported full year 2019 production and financial results from its Zacualpan Mining District in Mexico State. GoGold reported Q1 2020 production results from its Parral tailings operation in Chihuahua. US Antimony reported its March 2020 production results. Hecla provided Q1 2020 production and financial results from its San Sebastian mine in Durango. Endeavour reported Q1 2020 production results from its Mexican operations. ON FINANCING, Santacruz raised gross proceeds of CAD $734,150 and reported that it won´t be completing any additional tranches of its previously announced non-brokered private placement (Veta Grande, Zacatecas). Consolidated Zinc advised that the underwriting agreement for the rights Issue announced on 9 March 2020 has been terminated, in accordance with the terms of the agreement, due to market conditions (Plomosas mine, Chihuahua). Candelaria closed a non-brokered private placement for gross proceeds of $1,059,261 (Caballo Blanco project, Veracruz). Aloro announced its plan to raise gross proceeds of up to $400K (Los Venados project, Sonora). Minera Alamos received CAD $5M from Osisko Gold Royalties (Santana project, Sonora). ON RESOURCES AND DEVELOPMENT, Prime Mining filed a technical report on its Los Reyes deposit in Sinaloa, and provided a new mineral resource estimate. ON DEALS AND CORPORATE ISSUES, Avino announced that it has deferred its annual general meeting of shareholders until August 27, 2020 (Avino mine, Durango). Sable announced management changes and it also granted stock options to certain officers, directors and consultants (Vinata project, Chihuahua). Equinox reported that it will hold its annual general meeting for shareholders on May 15, 2020 (Los Filos mine, Guerrero). Orla announced the appointment of its new CFO (Camino Rojo project, Zacatecas). ON SOCIAL RESPONSIBILITY, Minera Fresnillo (Fresnillo plc) donated a state-of-the art ventilator to the General Hospital of IMSS at Fresnillo, Zacatecas.  Minera San Xavier (New Gold) delivered protective medical supplies to medical and nursing personnel of the local hospital at its Cerro de San Pedro mine in San Luis Potosi.   Newmont announced the establishment of a USD $20M fund to help host communities, governments and employees combat the COVID-19 pandemic. Minera Peñasquito made a donation of 500 Pro Shield suites to medical personnel who will attend cases of COVID-19. Grupo Mexico delivered a hospital to the government of Oaxaca to attend cases of COVID-19 at Juchitán city in the Istmo of Tehuantepec region.

ON MEXICO ISSUES

  • Mining Companies operating in Mexico, such as such as First Majestic, Telson, Torex, Capstone, Coeur, Endeavour, Impact, Hecla, Minera del Norte, and Equinox, have temporarily suspended mining activities until April 30, 2020 at their Mexican operations in accordance with Mexico´s Ministry of Health´s decree to mitigate the spread and transmission of COVID-19. They also have withdrew their 2020 production and cost guidance until further notice due to the uncertainty caused by the COVID-19 pandemic.

ON EXPLORATION

  • Ridgestone Mining Inc., announced that three out of 1o holes planed for 1st phase drilling program have been completed at its Rebeico project in Sonora for a total of 435.7m. Visible sulphide mineralization is observed in all three holes collared but assays are pending.
  • Discovery Metals Corp., released drilling results from 10 holes collared at its Cordero project in Chihuahua. These holes are part of the 30,000-35,000m planned for the first phase program focused on defining a high-margin project with scale that retains excellent leverage to rising metal prices. Significant drill intersections were encountered in hole C19-309 with 0.26 g/t Au, 673 g/t Ag, 10.1% Pb, and 3.7% Zn (1,205 g/t AgEq) over 1.3m; hole C20-310 with 0.08 g/t Au, 904 g/t Ag, 5.4% Pb, and 8% Zn (1,436 g/t AgEq) over 1.2m; hole C20-312 with 0.16 g/t Au, 273 g/t Ag, 0.8% Pb, and 5.5% Zn (546 g/t AgEq) over 5.3m, including 0.87 g/t Au, 1,500 g/t Ag, 3.2% Pb, and 30% Zn (2,929 g/t AgEq) over 0.6m; hole C20-314 with 0.37 g/t Au, 51 g/t Ag, 1% Pb, and 0.6% Zn (139 g/t AgEq) over 106.1m, including 2.08 g/t Au, 355 g/t Ag, 6.6% Pb, and 4.5% Zn (946 g/t AgEq) over 4.8m; and hole C20-316 with 0.55 g/t Au, 119 g/t Ag, 2% Pb, and 0.3% Zn (247 g/t AgEq) over 27.7m, including 1.1 g/t Au, 1,255 g/t Ag, 20% Pb, and 2.5% Zn (2,153 g/t AgEq) over 1m, and including 2.3 g/t Au, 721 g/t Ag, 12.7% Pb, and 1.9% Zn (1,435 g/t AgEq) over 1.5m; and other deeper interval of 0.58 g/t Au, 79 g/t Ag, 1.2% Pb, and 1.15% Zn (217 g/t AgEq) over 62.8m, including 1.14 g/t Au, 212 g/t Ag, 3.5% Pb, and 2.3% Zn (522 g/t AgEq) over 10m, and including 0.75 g/t Au, 151 g/t Ag, 2.3% Pb, and 3% Zn (422 g/t AgEq) over 11.9m. Until March 31, 2020, 48 holes totaling 17,500 m have been collared and assays from 24 holes are pending.

ON MINING

  • Impact Silver Corp., reported full year 2019 production and financial results from its Zacualpan Mining District in Mexico State. It produced 664K Oz Ag with an average mill feed grade of 182 g/t Ag, to report adjusted mining earnings of $1.3M on $13.3M revenue for the full year 2019.
  • GoGold Resources Inc., announced Q1 2020 production results from its Parral tailings operation in Chihuahua. The company produced 365.8K Oz Ag, 2,355 Oz Au, and 62.7K Lb Cu (600.7K Oz AgEq)
  • US Antimony Corporation, reported its March 2020 production. It sold 101,326 Lb Sb at an average price of $2.67 per Lb and 2.35M Lb zeolites.
  • Hecla Mining Company, released Q1 2020 production results from its San Sebastian mine in Durango. It produced 0.35M Oz Ag and 2.8K Oz Au.
  • Endeavour Silver Corp., reported Q1 2020 production results from its Mexican operations. A summary of the quarterly production by mine is shown in the next table:

  • Great Panther Mining Limited, announced Q1 2020 production and financial results from its Mexican operations. At its Topia mine in Durango, it processed 19,353 tonnes of 0.82 g/t Au and 357 g/t Ag, with metallurgical recoveries of 55.2% and 92.3% respectively to produce 282 Oz Au, 205.2K Oz Ag, 898.2K Lb Pb, and 1.4M Lb Zn (376.3K Oz AgEq). At its Guanajuato Mining Complex in Guanajuato, the company processed 49,607 tonnes of 1.85 g/t Au and 125 g/t Ag, with metallurgical recoveries of 84.1% and 85.4% respectively, to produce 2,482 Oz Au and 169.7K Oz Ag (393.1K Oz AgEq).

ON FINANCING

  • Santacruz Silver Mining Inc., raised gross proceeds for CAD $734,150 and reported that it won´t be completing any additional tranches of its previously announced non-brokered private placement (Veta Grande, Zacatecas). Gross proceeds will be used for general working capital and corporate purposes (Veta Grande, Zacatecas).
  • Consolidated Zinc Limited, advised that the underwriting agreement for the rights Issue announced on 9 March 2020 has been terminated, in accordance with the terms of the agreement, due to market conditions (Plomosas mine, Chihuahua).
  • Candelaria Mining Corp., closed a non-brokered private placement for gross proceeds of $1,059,261 (Caballo Blanco project, Veracruz).
  • Aloro Mining Corp., announced its plan to raise of up to $400K. Part of the gross proceeds will be used for property payments (Los Venados project, Sonora).
  • Minera Alamos Inc., closed the royalty agreement with Osisko Gold Royalties and received CAD $5M. In combination with the CAD $6M equity placement completed by Osisko in January of this year, the company, has now received gross proceeds of CAD $11M and retains an option to further drawdown an optional royalty facility of up to CAD $3M.  Overall, the package provided access to CAD $14M which exceeded the Company’s current development plans for its Santana project in Sonora.

ON RESOURCES AND DEVELOPMENT

  • Prime Mining Corp., filed a NI 43-101 technical report on its Los Reyes project in Sinaloa, and provided a new mineral resource estimate as of April 2, 2020. At a cut-off grade of 0.7 g/t Au, the measured and indicated resources are 8,697,000 tonnes of 2.21 g/t Au to contain 618,123 Oz Au, and the inferred resources are 2,603,000 tonnes of 2.09 g/t Au to contain 175,232 Oz Au. Total resources (M+I+I) are 11.3M tonnes of 2.18 g/t Au to contain 793,355 g/t Au. At a cut-off grade of 0.22 g/t Au, measured + indicated resources are 19,752,000 tonnes of 1.31 g/t Au to contain 833,032 Oz Au, and inferred resources of 7,094,000 tonnes to contain 261,132 Oz Au. Total resources (M+I+I) are 26,846,000 tonnes of 1.27 g/t Au to contain 1.1M Oz Au.

ON DEALS AND CORPORATE ISSUES

  • Avino Silver & Gold Mines Ltd., deferred its annual general meeting for shareholders until August 27, 2020 (Avino mine, Durango).
  • Sable Resources Inc., announced the resignation of one of its directors and reported that Rubén Padilla has joined to the board of directors. The company also announced that it has granted stock options to certain officers, directors, and consultants (Vinata project, Chihuahua).
  • Equinox Gold Corp., reported that it will hold its annual general meeting of shareholders on May 15, 2020 (Los Filos mine, Guerrero).
  • Orla Mining Ltd., announced the appointment of its new CFO (Camino Rojo project, Zacatecas).

ON SOCIAL RESPONSIBILITY

  • Minera Fresnillo (Fresnillo plc), donated a state-of-the art ventilator to the General Hospital of IMSS at Fresnillo, Zacatecas to attend cases of COVID-19 that may arise. The Mindray SV600 mechanical ventilator is an essential medical device at this time, as it provides patients with more oxygen so they can breathe. Currently, Fresnillo plc has redoubled efforts to serve all of its workforce, implementing measures that reinforce the health actions recommended by the Secretaries of Health and Labor and Social Welfare, as well as international organizations.
  • Minera San Xavier (New Gold Inc.), announced the suspension of the mining activities at its Cerro de san Pedro mine in San Luis Potosi due to the COVID-19 pandemic, and donated protective medical supplies to the local hospital at Soledad town, such as tyvek type overalls, N95 respirators, masks with the level of filtration recommended, etc., with the aim that they are destined for the medical and nursing personnel who work and who will attend COVID-189 cases an its hospital.
  • Newmont Corporation, announced the establishment of a USD $20M fund to help host communities, governments and employees combat the COVID-19 pandemic. “Newmont will partner with local governments, medical institutions, charities and non-governmental organizations to target funds towards addressing the greatest needs with a view to serving as a catalyst for long-term resiliency and future community development” (Peñasquito mine, Zacatecas).
  • Minera Peñasquito, made a donation of 500 Pro Shield suits to medical personnel who are in the first line of care for patients diagnosed with COVID-19. The donation was delivered to the Zacatecas Health Secretariat (SSZ), an instance that will be in charge of administering and distributing this protective equipment to the hospitals where it is most needed. In this way, Peñasquito is in solidarity with Zacatecas.
  • Grupo Mexico, delivered a hospital in the city of Juchitán to the government of Oaxaca. The Hospital, with a constructed area of ​​6,800 square meters, will be equipped and used by the Ministry of National Defense to face the COVID-19 pandemic and meet the needs of the population of the Isthmus of Tehuantepec region. Grupo México will continue to monitor the support required in the region in the context of the contingency and reiterates its support for Oaxaca and the Federal Government’s strategy in the face of this difficult challenge

 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-alunite in an epithermal vein system in Zacatecas, Mexico.  Photo by Miguel A Heredia.

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

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Colloform-banded quartz vein

By Miguel A Heredia

During the thirteen week of the year (March 23th to March 29th, 2020), at least 28 press releases were announced by companies working in Mexico, with seven commenting on Mexican issues, six disclosing deals and corporate issues, five informing on exploration results, four announcing financial rounds, four discussing issues on social responsibility, one communicating production and financial results, and one reporting on resources and developments.  ON MEXICO ISSUES, Fortuna Silver reported on March 24, 2020, an illegal road blockade on its San Jose mine in Oaxaca but fortunately on March 25, 2020 the company announced it had been lifted and the mine operations were resumed again. La Herradura mine (owned by Fresnillo plc), in the north of Sonora, is an example of how women have inserted themselves into industries historically dominated by men. Several mining companies operating in Mexico have implemented a series of measures to safeguard the health of their workers, in the face of the advance of the COVID-19 pandemic. Azure, Capstone, Evrim, and Premier Gold were some of the companies which reacted on the COVID-19 pandemic.  ON EXPLORATION, In Sonora, Azure reported a new Cu discovery at its Alacrán project and Ridgestone commenced a drilling program at its Rebeico project. In Chihuahua, Radius provided an update of its Amalia project. In Durango, Golden Tag announced the authorization from SEMARNAT to drill up to twenty one holes at its San Diego project.  In Jalisco, GoGold announced drilling results from eight holes collared at its Los Ricos project. ON MINING, Mexus announced operating cost lower than expected and confirmed positive cash flow obtained (Santa Elena mine, Sonora). ON FINANCING, Equinox Gold and Leagold received notice from Pacific Road Resources Fund to acquire 461,947 Equinox common shares for proceeds to the company of $2,854,832 and $9,278,209 aggregate principal amount of 5-years convertible notes (Los Filos mine, Guerrero). Orla announced bought deal financing for gross proceeds of CAD $75,030,000 (Camino Rojo project, Zacatecas).  VVC closed the first tranche of a non-brokered private placement for gross proceeds of CAD $951,560 (Kaity project, Chihuahua). Gold Resource declared March monthly dividend to its shareholders (El Aguila mine, Oaxaca).  ON RESOURCES AND DEVELOPMENT, Fortuna Silver updated mineral resource and mineral reserve as of December 31, 2019 for its San Jose mine, Oaxaca. ON DEALS AND CORPORATE ISSUES, Alamos Gold filed its annual information form and 2019 annual report (Mulatos mine, Sonora). GoGold announced results from its annual general meeting of shareholders (Los Ricos project, Jalisco). McEwen reported that it has fallen below the New York Stock Exchange (NYSE) continued listing requirement related to the price of its common stock (El Gallo mine, Sinaloa). Orla Mining announced Layback agreement with Fresnillo Plc (Camino Rojo project, Zacatecas). Evrim reported that it has terminated the option agreement with Harvest Gold on its Cerro Cascaron project in Chihuahua.   Radius entered into an option agreement to acquire, from a local concessionaire, 100% interest in the Plata Verde property in Chihuahua. ON SOCIAL RESPONSIBILITY, Argonaut Gold confirmed its commitment to the environment, performing and promoting good ecological practices in Sonora and Durango. Minera Autlán informed about their commitments regarding the responsible and sustainable Water Management. Grupo México reported that it will advance the delivery of a hospital in Juchitán, Oaxaca, to support efforts to combat the COVID-19 pandemic in the country. Representatives of the mining company Media Luna (Torex Gold) expressed their solidarity with the problem that the country is suffering due to the Coronavirus pandemic and donated mouthwash and antibacterial gel to the Guerrero health system (El Limón-Guajes mine complex, Guerrero).

ON MEXICO ISSUES

  • Fortuna Silver Mines Inc., reported on March 24, 2020, an illegal road blockade on its San Jose mine in Oaxaca by a group of individuals to protest the action taken by the Electoral Tribunal of the State of Oaxaca in revoking his appointment as major. Fortunately, the company announced the next day that it has been lifted, and the mine operation was resumed.
  • La Herradura mine(owned by Fresnillo plc), in the north of Sonora, is an example of how women have inserted themselves into industries historically dominated by men. There is still a long way to go in gender equality in industries such as mining, but there are examples that this is possible. For the mining industry, women’s work has given good results in cases such as La Herradura. For their part, women workers see mining as an opportunity to earn a living wage with opportunities for job growth. It may not be the first image that comes to mind, but women miners are a reality in Mexico.
  • Several mining companies operating in Mexico, have implemented a series of measures to safeguard the health of their workers, in the face of the advance of the COVID-19 pandemic.
  • Azure Minerals Limited, suspended all field exploration and drilling at the company´s project, and suspended the trial processing program of high-grade ore from Oposura with the bulk concentrates bagged into bulker bags which have been stored in the Company’s warehouse, and Implemented required policies and procedures which include “no travel”, “no congregating in groups”, “social distancing” and “working from home”.
  • Capstone Mining Corp., reported that its priority is to ensure the health and safety of their people, and stated that until now, COVID-19 has not impacted production or concentrate shipments at its Cozamin mine in Zacatecas.
  • Evrim Resources Corp., took the decision to send all his employees to work remotely to keep them safe and healthy.
  • Premier Gold Mines Limited, announced that its Mercedes mine in Sonora has not been materially impacted by the COVID-19 pandemic. The company is focused on protect their employees from the coronavirus outbreak. It has introduced company-wide health and safety protocols and has implemented controls and safety procedures at each site.

ON EXPLORATION

  • Azure Minerals Limited, reported, within its El Alacrán project, a new Cu discovery called Gregors by doing RC drill-testing a buried VTEM geophysical anomaly coincident with a 100m by 100m outcrop of breccia and gossan. Significant drill intersections were encountered in hole GGC-02 with 0.68% Cu over 30m, including 2.3% over 6m, and hole GGC-003 with 0.96% Cu over 18m, including 7.03% Cu over 1.5m. Azure is undertaking a detailed data review and interpretation plus initial mineralogical and metallurgical studies to assess potential and assist with planning a follow-up drill program. Additionally, the company also reported a single hole collared at San Simon mine located 700m away from its Loma Bonita resource area, which returned 2 g/t Au and 64 g/t Ag over 21m, including 3.35 g/t Au over 6.0m. Further drilling to test the vuggy silica mineralized zone, which is interpreted to extend further to the east and south beneath the Cerro San Simon hill, will be undertaken in the next drill program.
  • Ridgestone Mining Inc., announced the commencement of a 1,500m drilling program in 10 holes at its newly discovered Au-Cu bearing New Year zone at its Rebeico project in Sonora. This first phase drilling program will be focused on testing at depth the high grade Au-Cu mineralization discovered in 2019 with surface sampling which returned up to 12.95 g/t Au and 0.65% Cu, testing the southern portion of the nearby Alaska Vein south of the hole 18REB10 which intersected 36.10 g/t Au over 1.5m, and also test the potential junction of the >New Year zone with the southern part of the Alaska vein.
  • Radius Gold Inc., provided an update for its Amalia project in Chihuahua. Highlights include the development of its El Cuervo target, located 3.8km southeast of the current drilled area of san Pedro, where up to 40m wide of silicification, breccias and veining with strong Au and Ag geochemistry has been mapped and sampled over a length of 750m. Radius also reported that a drill permit is in progress for a fourth phase of drilling at its Amalia project. The fourth phase of drilling will consists of 9 deep holes to test down dip and lateral extension of the high grade Au-Ag mineralization defined at san Pedro area.
  • Golden Tag Resources Ltd., announced the authorization from SEMARNAT to drill up to twenty one holes at its San Diego project in Durango. The company plans to conduct a 2,000m drilling program in eight holes to test the near-surface continuity of mineralization identified in previous drilling programs at the Trovador-MS and El Jal-Arroyo Zone target areas.
  • GoGold Resources Inc., reported drilling results from eight holes collared at its Los Ricos project in Jalisco, including three at San Juan and five in the Main Area. Significant drill intersections were encountered in hole LRGG-20-115 (Main Area) with 0.61 g/t Au and 153 g/t Ag (2.65 g/t AuEq or 203 g/t AgEq) over 19.5m, including 1.17 g/t Au and 281 g/t Ag (4.93 g/t AuEq or 370 g/t AgEq) over 9.6m; and hole LrGG-20-119 (Main Area) with 0.91 g/t Au and 135 g/t Ag (2.71 g/t AuEq or 203 g/t AgEq) over 26.4m, including 1.6 g/t Au and 196 g/t Ag (4.21 g/t AuEq or 316 g/t AgEq) over 12.6m.

ON MINING

  • Mexus Gold US, announced it is producing Au at a cost of USD $376/Oz and confirmed it is operating at a positive cash flow. Mexus is planning to produce 10 Oz Au per day within 60 days (Santa Elena mine, Sonora).

ON FINANCING

  • Equinox Gold Corp. and Leagold Mining Corporation,  received notice from Pacific Road Resources Fund to acquire 461,947 Equinox common shares for proceeds to the company of $2,854,832 and $9,278,209aggregate principal amount of 5-years convertible notes. The Company intends to use the proceeds from the shares and notes for general corporate and working capital purposes (Los Filos mine, Guerrero).
  • Orla Mining Ltd., announced a bought deal for gross proceeds of CAD $75,030,000. The company also granted an over-allotment option to purchase up to an additional 5.49M common shares at the offering price. If this option is exercised in full, an additional CAD $11,254,500 in net proceeds will be raised. At the end, the total aggregate gross proceeds of the offering will be CAD $86,284,500. Net proceeds will be used for exploration and development of its Camino Rojo project in Zacatecas.
  • VVC Exploration Corporation, closed the first tranche of a non-brokered private placement for gross proceeds of CAD $951,560. Net proceeds will be used to develop its Katya project in Chihuahua, including costs associated with various permits, metallurgical bench testing of the copper mineralization, and investigation, evaluation and implementation of the Gloria Pilot Mining Project.
  • Gold Resource Corporation, declared March monthly dividend of one-third of a cent per common share to its shareholders (El Aguila mine, Oaxaca).

ON RESOURCES AND DEVELOPMENT

  • Fortuna Silver Mines Inc., updated mineral resource and mineral reserve as of December 31, 2019 at its San Jose mine, Oaxaca. Proven reserves are 232,000 tonnes of 2.12 g/t Au and 311 g/t to contain 16K Oz Au and 2.3M Oz Ag, and Probable reserves are 3, 704,000 tonnes of 1.58 g/t Au and 239 g/t Ag to contain 188K Oz Au and 28.5M Oz Ag. Total proven + probable reserves are 3,936,000 tonnes of 1.61 g/t Au and 243 g/t Ag to contain 204K Oz Au and 30.8M Oz Ag. It also reported that has measured resources of 17,000 tonnes of 0.8 g/t Au and 104 g/t Ag to contain 1K Oz Au and 0.1M Oz Ag, and Indicated resources of 538,000 tonnes of 0.7 g/t Au and 105 g/t Ag to contain 12K Oz Au and 1.8M Oz Ag. Measured + Inferred resources are 555,000 tonnes of 0.7 g/t Au and 105 g/t Ag to contain 13K Oz Au and 1.9M Oz Ag. In addition it reported inferred resources of 3,889,000 tonnes of 0.96 g/t Au and 131 g/t Ag to contain 120K Oz Au and 16.3M Oz Ag. (Mineral Resources are exclusive of Mineral Reserves).

ON DEALS AND CORPORATE ISSUES

  • Alamos Gold Inc., filed its annual information form and 2019 annual report, including its audited financial statement for the year ended December 31, 2019 (Mulatos mine, Sonora).
  • GoGold Resources Inc., announced results from its annual general meeting of shareholders (Los Ricos project, Jalisco).
  • McEwen Mining Inc., reported that it has fallen below the New York Stock Exchange (NYSE) continued listing requirement related to the price of its common stock. The NYSE requires that the average closing price of a listed company’s common stock be above US$1.00 per share, calculated over a period of 30 consecutive trading days (El Gallo mine, Sinaloa).
  • Orla Mining Ltd., announced a non-binding layback letter agreement with Fresnillo Plc., to extend its Camino Rojo oxide pit onto part of Fresnillo´s mineral concession. Under the terms of the agreement, Orla will pay Fresnillo a total cash consideration of USD $62.8M: USD $10M due upon the execution of the definitive layback agreement; USD $15M due Orla having received all funding and permits required for construction and development or July 1st, 2020; USD $15M due no later than 12 months following the commencement of commercial production or December 1st, 2022; USD $22.8M due no later than 24 months following the commencement of commercial production or December 1st, 2023; the amounts for the third and fourth payments shall bear an interest of 5% per annum from July1, 2020 until the date of payment. (Camino Rojo project, Zacatecas).
  • Evrim Resources Corp. and Harvest Gold Corporation, announced the termination of its option agreement on Cerro Cascaron project in Chihuahua. Evrim is seeking a new partner to continue the exploration of this mining property.
  • Radius Gold Inc., entered into an option agreement with a local concessionaire, to acquire 100% interest in the 300 Has Plata Verde property in Chihuahua by making staged payments totaling over four years USD $880K with the final payment equal to USD $400K at the end of year four. An USD $8K signing payment has already been paid. The owner retains a 1% NSR which Radius can buy back for USD $1M. “Plata Verde, silver mineralization occurs as massive to crustiform banded barite calcite with silver chlorides, sulphosalt minerals and native silver infilling and cementing fractures and breccia within a basaltic/andesite extrusive volcanic. The basaltic/andesite host occurs at the base of the Upper Rhyolitic Volcanics of the Northern Sierra Madre. In general the host volcanics and associated silver mineralization is covered by the overlying rhyolitic ignimbrites and is only exposed along the length of a small creek”. Initial prospecting rock chips by Radius geologists have returned silver grades between 5 and 1,070 g/t Ag.

ON SOCIAL RESPONSIBILITY

  • Argonaut Gold Inc., confirmed its commitment to the environment, performing and promoting good ecological practices in Sonora and Durango, such as recycling all material used in its operations, confining all dangerous resources, increasing the use of renewable energy, preserving the flora and fauna species, taking care of air quality and generating new alternatives to help capture water in the aquifers, etc. The company offered 664 talks in its operation units in Sonora and Durango during 2019 to foster its commitment to the environment.
  • Minera Autlán SAB de CV., informed about their commitments regarding the responsible and sustainable management of Water. Autlán promotes responsible water consumption in all its mining units. This consists of reusing as much water as possible, in order to satisfy the greatest number of operations and guarantee the sustainability of the environment. The trend is to continue reducing the amounts used, making resource management much more effective through treatment processes.
  • Grupo México , reported that it will advance the delivery of a hospital in Juchitán, Oaxaca, to support efforts to combat the COVID-19 pandemic in the country. The hospital, with a constructed area of ​​6,800 square meters and a planned capacity of more than 60 beds, was designed to meet the specific requirements of the citizens of the municipalities of Juchitán de Zaragoza, Santo Domingo de Tehuantepec, Matías Romero and Salina Cruz, who were among the most affected in the region after the 2017 earthquakes.
  • Representatives of the mining company Media Luna (Torex Gold), expressed their solidarity with the problem that the country is suffering due to the Coronavirus pandemic and donated to the health system of Guerrero state, 3,500 covers mouths and more than 1,000 liters of antibacterial gel due to the shortage of these products across the country.

 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 colloform-banded quartz vein in a low-sulphidation epithermal system in Zacatecas, Mexico.  Photo by Miguel A Heredia.

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

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Mn-Silica breccia hosted in ignimbritic rhyolites

By Miguel A Heredia

During the ninth week of the year (February 24th to March 1st, 2020), at least 33 press releases were announced by companies working in Mexico, with seven announcing financial rounds, seven commenting on Mexican issues, five informing on exploration results, five reporting on resources and developments, four communicating production and financial results, four disclosing deals and corporate issues, and one discussing issues on social responsibility.  ON MEXICO ISSUES, Majors are called to receive the Mining Fund.  The Technical Committee of the Federal Mining Fund allocated resources for 16 projects in the states of Chihuahua, Coahuila, Durango and Guerrero.  The Municipalities of Aquiles Serdán and Ocampo in the state of Chihuahua will receive MXP $18.6M from the Mining Fund. The President of Mexico, Andres Manuel López Obrador, was requested by workers of Minera Cosalá to end the illegal strike that affects that mine site. Oaxaca’s mining potential could be profiled as one of the most important in Mexico. The official spokesperson of Esperanza Silver de Mexico stated that the company will comply 100% with Mexican standards not only with the community of Tetlama, but throughout the Municipality of Temixco, Morelos. In recent years, Mexico has registered the suspension of dozens of mining projects, whose assets have been victims of price volatility, licensing obstacles, adverse political factors, and community opposition. ON EXPLORATION, In Sonora, Colibri announced the commencement of its initial 5-holes diamond drilling program at its Evelyn project, and Silver Viper released drilling results from its El Rubi project. In Durango, Chesapeake provided an update on the exploration program at its Crisy and San Javier prospects located in the vicinity of its Metates project. In Jalisco, GoGold released drilling results from nine holes collared at its Los Ricos project. In the State of Mexico, Impact Silver reported sampling results from its Chapanial project. ON MINING, Telson provided an update on its mine operation at Campo Morado, Guerrero. Argonaut, Avino, and Golden Minerals reported Q4 and full year 2019 production and financial results from their Mexican operations. ON FINANCING, Aztec announced the re-pricing of a package of stock options of the company (Cervantes project, Sonora).  GoGold closed a bought deal offering for gross proceeds of approximately CAD $25M (Los Ricos project, Jalisco). Santacruz closed the first tranche of a non-brokered private placement for gross proceeds of CAD $734,150 (Veta Grande, Zacatecas). Ridgestone closed the final tranche of its private placement financing for gross proceeds of $339,549.90 (Rebeico project, Sonora). Gold Resource declared its February 2020 monthly dividend to its shareholders (Arista mine, Oaxaca). Minera Alamos received approval from its shareholders for final phase of its Santana, Sonora project financing for CAD $5M. Riverside announced the spin-out of its Peñoles project in Durango.  ON RESOURCES AND DEVELOPMENT, First Majestic released infill drilling results from it’s the Ermitaño project in Sonora. Prime Mining reported surface trenching, road cuts, and adits sampling results from its Los Reyes project in Sinaloa. Sonoro announced its plan to expand its drilling program at its Cerro Caliche project in Sonora. Fresnillo and its JV partner Mag Silver provided an update on its Juanicipio project in Zacatecas.  ON DEALS AND CORPORATE ISSUES, Radius Gold and pan American Silver included Palmillas property within the Amalia JV project in Chihuahua. Oroco informed that its Board of Directors has approved the Altamura Copper Corp acquisition (Santo Tomas project, Sinaloa). Silver Spruce announced management changes and appointed its new President, CEO and Director (Pino de Plata project, Chihuahua). Fresnillo plc exercised its option to purchase Plata Latina´s Naranjillo property in Guanajuato. ON SOCIAL RESPONSIBILITY, Grupo Peñoles and UNAM conducted a Health Day in Zacatecas.

ON MEXICO ISSUES

  • Majors of 23 of the 38 Municipalities of Coahuila state are called to receive the Mining Fund. An urgent request was made to 23 Majors of Municipalities benefited with resources from the Mining Fund in order to make this benefit effective. To achieve this objective, the projects in which the resources will be applied must be presented.
  • The Director of the Mining Fund of the Secretariat of Economy, María del Socorro Gómez Leyja, indicated that the Technical Committee of the Federal Mining Fund allocated resources for 16 projects in the states of Chihuahua (MXP $ 18.6M), Coahuila (MXP $ 3.1M), Durango (MXP $ 7.6M) and Guerrero (MXP $ 4.6M).
  • MXP $18.6M from the Mining Fund was allocated to Chihuahua. The Municipalities of Aquiles Serdán and Ocampo in the state of Chihuahua, will have resources from the Mining Fund that will be used for paving, dome, well and water network, thanks to the approval by the Technical Committee of the Mining Fund.
  • The President of Mexico, Andres Manuel López Obrador (AMLO) was requested by workers of Minera Cosalá to end the illegal strike that affects that mine site. The same workers, said to AMLO that the leader of its Union affiliated with the CTM, negotiated the collective work contract with the company Minera Cosalá SA de CV, and determined that the operation was normal and there were no irregularities on the part of the company. However, workers close to the senator of the Morena party and mining leader Napoleón Gómez Urrutia, asked the company for salaries higher than normal. They mentioned that the mine has been working since 2003 and they have a safe job for at least six more years, in excellent working conditions and that their only desire is to work, regardless of which Union won the collective agreement.
  • Oaxaca´s mining potential, according to specialists, government and private capital, could be profiled as one of the most important in Mexico, to generating jobs and strengthening the regional economy of indigenous communities. Currently the state has not been explored outside the mining districts and known mineralized areas, but contains promising areas for Au, Ag, Cu, Pb, Zn, Sb, and non-metallic minerals such as micas, zeolites, marble, travertine, and granite among others. Data from some civil organizations indicate that Oaxaca’s mining production represents 0.72% of the total national value, with Ag first, second Au and third Pb.
  • Ricardo Sierra Oteiza, official spokesperson of the Esperanza project in Morelos State, said that through the new model of social end environmentally responsible mining, the company Esperanza Silver de Mexico will comply 100% with Mexican standards not only with the community of Tetlama, but throughout the Municipality of Temixco, Morelos. In addition, he stressed that there will be an investment of over USD $400M in the 10 years that the company plans to carry out work in the state.
  • In recent years, Mexico has registered the suspension of dozens of mining projects, whose assets have been victims of price volatility, licensing obstacles, adverse political factors, and community opposition. BNamericas accounts for 59 Mexican projects suspended in its database, compared to 95 active projects. Of the 11 suspended projects for which financial information is available, combined capital expenditure totals USD $ 2.4B.This compares to 42 active projects whose combined capital expenditure amounts to USD $ 14.2B. The greater projections for Au and Ag, along with political changes at the state level, have improved the prospects for the resumption of some of the suspended projects. However, the depressed prices of Cu and Zn and not minor problems with obtaining permits and other legal aspects continue to put important obstacles on others. Some of the largest suspended projects are La Verde in Michoacan, Sierra Mojada in Coahuila, Angangueo in Michoacan, Ixtaca in Puebla, Ana Paula in Guerrero and Esperanza in Morelos. Other suspended projects are Monterde in Sonora, Caballo Blanco in Veracruz, San Antonio, Baja California Sur, and La Bolsa in Sonora.

ON EXPLORATION

  • Colibri Resource Corporation, announced the commencement of its maiden drill program at its Evelyn project in Sonora. The initial 5-diamond holes drilling program will be focused on two mineralized corridors named Cerro Rojo and El Sahuaro and is expected to be completed in three weeks.
  • Silver Viper Minerals Corp., provided drilling results from its El Rubi project in Sonora. All holes encountered mineralized zones, with several significant interceptions in hole LV20-217 with 4.45 g/t Au and 401 g/t Ag (10.18 g/t AuEq or 713 g/t AgEq) over a true width of 4.56m, including 15.55 g/t Au and 1,436 g/t Ag (36.06 g/t AuEq or 2,524 g/t AgEq) over a true width of 1.14m; 1.79 g/t Au and 91 g/t Ag (3.1 g/t AuEq or 217 g/t AgEq) over a true width of 7.41m, including 7.49 g/t Au and 586 g/t Ag (15.86 g/t AuEq or 1,110 g/t AgEq) over a true width of 0.57m; and 2.05 g/t Au and 46 g/t Ag (2.70 g/t AuEq or 189 g/t AgEq) over a true width of 6.27m, including 8.44 g/t Au and 201 g/t Ag (11.3 g/t AuEq or 791 g/t AgEq) over a true width of 1.14m. Hole LV20-218 also intersected several mineralized zones with 5.82 g/t Au and 530 g/t Ag (13.39 g/t AuEq or 937 g/t AgEq) over a true width of 1.89m, including 14.4 g/t Au and 1,253 g/t Ag (32.3 g/t AuEq or 2,261 g/t AgEq) over a true width of 0.63m; 9.15 g/t Au and 569 g/t Ag (17.28 g/t AuEq or 1,210 g/t AgEq) over a true width of 5.04m, including 22.63 g/t Au and 1,431 g/t Ag (43.08 g/t AuEq or 3,015 g/t AgEq) over a true width of 1.89m. The El Rubi mineralized structure has now been intercepted on seven sections for a total 300m of strike extent.
  • Chesapeake Gold Corp., provided an update on the exploration program at its Crisy and San Javier prospects, located 15Km south and 12 km southeast respectively from its Metates project in Durango. These both projects cover several zones of Au-Ag mineralization along regional, deep-seated northwest-trending fault zones, associated with intermediate intrusive rocks that have altered the enclosing sedimentary rocks over an area more than 15 km in diameter. At Crisy, Chesapeake competed 4 trenches totaling 350m in length and returned 1.1 g/t Au and 10 g/t Ag over 57m; 1 g/t Au and 10 g7t Ag over 11m; 1.1 g/t Au and 33 g/t Ag over 12m; and 2.2  g/t Au and 29 g/t Ag over 7m. In addition, an initial 15km IP survey is underway over the trenched area at Crisy and preliminary results correlate well with the Au-Ag mineralization and suggest that the outcropping quartz bx zone extend to over 200m depth. It also indicates that the anomaly is continues along strike and remains open. The IP survey also defined a large NW-SE trending high chargeability anomaly about 200m to the SW of the bulldozer trenching. The IP survey indicates a more than 500m long by 500m wide on which limited sampling has returned 1.2 g/t Au over 4m wide, and 1 g/t Au and 13 g/t Ag over 5m wide. Four Km to the NW of the area of bulldozer trenching, multiple quartz structures within a corridor over 800m long by 200ms wide and with 150m of vertical extent were identified returning 1 g/t Au over 9m wide; 0.8 g/t Au over 12m; and 3.1 g/t Au and 10 g(/t Ag over 1.3m wide. Regional exploration has now identified several distinct target areas hosting quartz veins, bx and local stockwork along the 7 kilometer long hydrothermal system at Crisy. At San Javier, the company identified a 1.2km long, high-grade Au-Ag quartz vein structures over 300m in elevation. Channel sampling on these structures  returned encouraging results as 9.6 g/t Au and 143 g/t Ag over 2.8m; 3.3 g/t Au and 391 g/t Ag over 1m; 2.3 g/t Au and 18 g/t Ag over 1.4m; and 2.1 g/t Au and 113 g/t Ag over 1m. Trenching and IP survey is being carried out on San Javier to test the potential for disseminated Au hosted in highly altered intrusive rocks.
  • GoGold Resources Inc., presented drill results from nine holes collared at its Los Ricos project in Jalisco. Significant drill intersections were encountered in hole LRGG-20-100 with 1.51 g/t Au and 204 g/t Ag (4.23 g/t AuEq or 317 g/t AgEq) over 17.3m, including 6.56 g/t AuEq or 492 g/t AgEq over 6.9m; hole LRGG-20-98 with 1.78 g/t Au and 319 g/t Ag (452 g/t AgEq) over 7.5m; and hole LRGG-20-93 with 1.27 g/t Au and 113 g/t Ag (2.78 g/t AuEq or 208 g/t AgEq) over 19m. GoGold is undertaking two drilling and exploration projects at its Los Ricos property: the South Project began in March 2019 and includes the ‘Main’ area, which is focused on drilling around a number of historical mines including El Abra, El Troce, San Juan, and Rascadero. The South Project also includes the Cerro Colorado and Las Lamas targets. The North Project was launched this month and includes the Monte del Favor, Salomon, La Trini, and Mololoa targets.
  • Impact Silver Corp., reported channel sampling results from its Chapanial project, located 1.7Km to the north along the projection of the La Faly vein system. Significant sampling results include 97.5 g/t Au, 98 g/t Ag, 0.25% Pb, and 0.10% Zn over a true wide (TW) of 0.8m; 18.25 g/t Au, 75 g/t Ag, 0.3% Pb, and 0.08% Zn over a TW of 0.20m; 8.98 g/t Au, 105 g/t Ag, 5.4% Pb, and 0.1% Zn over a TW of 0.3m, and 8.53 g/t Au, 498 g/t Ag, 0.1% Pb, and 0.04% Zn over a TW of 0.4m. The vein at El Chapanial area is hosted in interbedded shales and volcanics and is associated with a major fault structure which hosts a sulphide bearing polymictic breccia up to 8m in width.

ON MINING

  • Telson Resources Corporation, provided an update on its mine operation at Campo Morado in Guerrero, which was brought back into production last January 26, 2020. Since the re-start through to February 22, 2020, the company has milled 40,839 tonnes to produce approximately 3,151 tonnes of Zn concentrate with grades of 46.3% Zn, 498 g/t Ag, and 0.90g/t Au, and 636 tonnes of Pb concentrate with grades of 21.7% Pb, 4.55% Cu, 636 g/t Ag, and 3.66 g/t Au. Average recoveries achieved are 71.7% Zn, 32.2% Pb, 45.4% Ag, and 13.1% Au.
  • Argonaut Gold Inc., reported Q4 and full year 2019 production and financial results from its Mexican operations. It also provided 2020 production and cost guidance. At its El Castillo mine in Durango, Argonaut mined in Q4 2019, 1,890,000 tonnes of 0.52 g/t Au to produce 13.6K Oz Au and 21K Oz Ag (13.9K Oz GEOs), at a cash cost of USD $1,264 per Oz Au sold. For the full year, it mined 8,914,000 tonnes of 0.41 g/t Au to produce 65.1K Oz Au and 102.3K Oz Ag (66.5K GEOs), at a cash cost of USD $1,030 per Oz Au sold. For the Q4, 2019, the company mined 2,460,000 tonnes of 0.35 g/t Au at its San Agustin mine in Durango to produce 19.86K Oz Au and 85.45K Oz Ag (21K GEOs) at a cash cost of USD $829 per Oz Au sold. For the full year, it mined 8,453,000 tonnes of 0.38 g/t Au to produce 61.8K Oz Au and 219.5K  Oz Ag (64.77K GEOs), at a cash cost of USD $842 per Oz Au sold. At its La Colorada mine in Sonora, during the period Q4 2019, the company produced 1,115,000 of 0.49 g/t Au to produce 12.14K Oz Au and 35.86K Oz (12.62 GEOs) at a cash cost of USD $879 per Oz Au sold. For the full year 2019, it mined 4,676,000 tonnes of 0.51 g/t Au to produce 53.8K Oz Au and 159.7K Oz Ag (55.71 GEOs) at a cash cost of USD $884 per Oz Au sold. Argonaut also provide a 2020 production and cost guidance and plans to produce at El Castillo Complex between 115-120K GEOs at a cash cost of USD $900-1,000 per Oz Au sold, and between 60-65K GEOs at a cash cost of USD $900-1,000 per Oz Au sold. Argonaut plans to invest between USD $40-$50M (USD $12-16M at El Castillo Complex, USD $17-20 at La Colorada, and the rest between  Magino & Cerro del Gallo).
  • Avino Silver & Gold Mines Ltd., reported Q4 and full year 2019 production and financial results from its Avino mine in Durango. In Q4 2019, the company processed 107,310 tonnes from its Avino mine of 51 g/t Ag, 0.64 g/t Au, and 0.62% Cu, recovering 87%, 76%, and 89% respectively to produce 153.6K Oz Ag, 1,676 Oz Au, and 1.29M Lb Cu, for a total of 495.5K Oz AgEq. From its San Gonzalo mine, it processed 2,908 tonnes of 53 g/t Ag and 0.38 g/t Au, recovering 78% and 72% respectively, to produce 4,106 Oz Ag and 26 Oz Au for a total of 6,964 Oz AgEq. From its Historic Above Ground Stockpile, Avino processed 78,218 tonnes of 51 g/t Ag, 0.25 g/t Au, and 0.18% Cu, recovering 50%, 53%, and 31% respectively, to produce  63K Oz Ag, 330 Oz Au, and 96K Lb Cu for a total of 106.2K Oz AgEq. For the full year 2019, the company processed from its Avino mine, 427,147 tonnes of 44 g/t Ag, 0.45 g/t Au, and 0.46% Cu, recovering 85%, 73%, and 86% respectively, to produce  3K Oz Ag, 4,473 Oz Au, and 4.56M Lb Cu for a total of 1.66M Oz AgEq. From its San Gonzalo mine, it processed 56,179 tonnes of 118 g/t Ag and 0.46 g/t Au, recovering 69% and 66%, to produce 153.4K Oz Ag and 580 Oz Au for a total of 215.1K Oz AgEq. From its Historic Above Ground Stockpile, the company processed 306,334 tonnes of 55 g/t Ag, 0.36 g/t Au, and 0.18% Cu, recovering 54%, 53%, and 35% respectively, to produce 295.2K Oz Ag, 1,859 Oz Au, and 407K Lb Cu, for a total of 525.8K Oz AgEq.
  • Golden Minerals Company, reported full year 2019 results from its Mexican operations. It reported revenue of USD $7.7M and a net operating margin of USD $5.3M in 2019. Expenditures during 2019 totalized USD $11.4M and a cash and equivalents balance of USD $4.6M. Cash inflows during 2019 totaled USD $12.7M.

ON FINANCING

  • Aztec Minerals Corp., announced the re-pricing of 200K stock options of the company from $0.25 to $0.12 per common share, and a total of 1,950,000 stock options of the company from $0.35 to $0.105 per common share (Cervantes project, Sonora).
  • GoGold Resources Inc., closed a bought deal offering for gross proceeds of approximately CAD $25M. Net proceeds will be used to fund additional exploration on its Los Ricos project, Jalisco, and particularly at the Monte del Favor target, and for corporate development, and general corporate purposes.
  • Santacruz Silver Mining Ltd., closed the first tranche of a non-brokered CAD $3M private placement to raise gross proceeds of CAD $734,150. Net proceeds will be used for general working capital and for corporate purposes (Veta Grande project, Zacatecas).
  • Ridgestone Mining Inc., closed the final tranche of a private placement financing for gross proceeds of $339,549.90. Net proceeds will be used for ongoing working capital requirements relating to its Rebeico project in Sonora. In total, the company raised gross proceeds of $1,051,801.95in the financing. Ridgestone also announced that it has entered into shares for debt settlement for the aggregate amount of $105K due to Leede for consulting services fees accrued pursuant to a consulting agreement between Ridgestone and Leede dated Nov 1, 2019.
  • Gold Resource Corporation, declared its February 2020 monthly dividend of one third of a cent per common share to its shareholders (Arista mine, Oaxaca).
  • Minera Alamos Inc., received approval from its shareholders for final phase of its Santana, Sonora project financing for CAD $5M. It is working on completing final documentation for execution no later than the end of Q1 2020.
  • Riverside Resources Inc., announced that its board of directors approved a spin-out of its Peñoles project in Durango to its shareholders by way of a share capital reorganization effected through a stationary plan of arrangement. Peñoles property is wholly owned by its subsidiary Capitan Mining Inc. Under the arrangement, Riverside will distribute the common shares of Capitan to Riverside´s shareholders.

ON RESOURCES AND DEVELOPMENT

  • First Majestic Silver Corp., released infill drilling results from it’s the Ermitaño project, located 4km away from the company´s producing Santa Elena mine in Sonora. Drilling highlights include the following drill intersections: hole EW-19-67 with 12.84 g/t Au and 46 g/t Ag (1,106 g/t AgEq) over 10.8m; hole EW-19-74 with 9.46 g/t Au and 383 g/t Ag (1,164 g/t AgEq) over 6.4m; hole EW-19-85 with 31.63 g/t Au and 459 g/t Ag (3,068 g/t AgEq) over 2.4m; hole EW-19-91 with 11.61 g/t Au and 45 g/t Ag (1,003 g/t AgEq) over 13m; hole EW-19-103 with 16.37 g/t Au and 111 g/t Ag (1,462 g/t AgEq) over 7.7m; hole EW-19-111 with 17.98 g/t Au and 79 g/t Ag (1,562 g/t AgEq) over 4.5m; and hole EW-19-113 with 14.22 g/t Au and 130 g/t Ag (1,302 g/t AgEq) over 9.1m. Next month, the company expects to present an updated resource estimate for it’s the Ermitaño project. First Majestic is planning to drill 15,000m in 50 drill holes for resource expansion. It is also working on several engineering studies for detailed mine design and initial production. It expects to complete 3,800m of underground development in 2020, to reach the mineralized area and prepare five production levels.
  • Prime Mining Corporation, presented surface trenching, road cuts and adits sampling results from the El Zapote South and El Zapote North target areas within its Los Reyes project in Sinaloa. Significant sampling results are 6.75 g/t Au and 58 g/t Ag over 39m, including 9.88 g/t Au and 62 g/t Ag over 18m; 7.76 g/t Au and 80 g/t Ag over 12m, including 48.3 g/t Au and 117 g/t Ag over 1.5m; 6.21 g/t Au and 697 g/t Ag over 7.5m, including 14.4 g/t Au and 1,875 g/t Ag over 1.5m. This sampling is part of the initial phase of exploration designed to better map the surface expression of the mineralized structures and integrate the results into a new resource model, currently underway.
  • Sonoro Metals Corp., announced the plan to complete the assessment of 17 zones of Au mineralization identified at its Cerro Caliche project in Sonora, with the purpose of increase the current 201K Oz AuEq resource. The compnay plans to carry out a combined RC and core drill program in several phases for up to 50,000m. Phase III of this program will commence in March and will consists of 10,000m of drilling. In Phase I and II, a total of 10,328m were drilled in 96 holes.
  • Fresnillo plc and its JV partner Mag Silver, provided an update on its Juanicipio project in Zacatecas. Mine construction at Juanicipio project is well underway, detailed engineering is nearing completion, and all major process equipment has been purchased and received on site. Over 25Km of underground development has been completed to date. Pre-operative CAPEX has increased by 11.4% from USD $395M to USD $440M. Production is expected to start in mid-2020 with initial production stopes to be processed at the Fresnillo beneficiation plant from June 2020 pending completion of the Juanicipio plant. Total average annual anticipated production has been estimated in 11.7M Oz Ag, 43.5K Oz Au, with an initial life of mine (based on Indicated Resources only) of 12 years. Additional years of production expected to be supported by the current Inferred Resources, which are being converted into the Indicated category. Further exploration opportunities exist in the JV license area with potential to scale-up operations in the future.  Commissioning of the flotation plant will be underway mid-2021. Exploration is ongoing on the property with the intention to increase the deeper resources and targeting new veins.

ON DEALS AND CORPORATE ISSUES

  • Radius Gold Inc., declared that Pan American Silver Corp., has elected to exercise a right to include the 800 Has Palmillas property to its Amalia JV project in Chihuahua. Palmillas contains multiple exploration targets, including high grade Au-Ag mineralization, 1.8km away and along strike on the San Pedro Zone.
  • Oroco Resource Corp., informed that its Board of Directors approved the acquisition of 100% interest of Altamura Copper Corp. Closing of the acquisition is expected to occur on March 02, 2020. Oroco has to issue 39.8M shares of the company to Altamura shareholders. Oroco also confirmed the appointment of its new President effective on March 01, 2020.
  • Silver Spruce Resources Inc., announced management changes and appointed its new President, CEO, and Director, effective March 01, 2020 (Pino de Plata project, Chihuahua).
  • Fresnillo plc, exercised its option to purchase Plata Latina´s Naranjillo property in Guanajuato. The Naranjillo Project is a grassroots epithermal Ag-Au discovery made by the Company in 2012 and is located in the Mexican Silver Belt, approximately 35 km southeast of the Guanajuato mining district. The transaction and transfer of the property was closed on February 24, 2020.

ON SOCIAL RESPONSIBILITY

  • Minera Madero (Grupo Peñoles) and National Autonomous University of Mexico (UNAM), conducted a Health day in Zacatecas. At least one thousand people will benefit from the Fourth Health Day, opened this week by Grupo Peñoles and the UNAM. Minera Madero, as a host company, made its facilities available to serve the residents of the communities of Francisco I. Madero, Noria de Gringos, El Maguey, Rancho Nuevo, San Antonio de los Negros, Cieneguillas, Morelos and the Ejido Morelos in specialties such as dentistry, optometry and psychology.

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-silica Bx in an epithermal system prospect in Chihuahua, Mexico.  Photo by Miguel A Heredia.

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

/ Gambusino Prospector / Leave a comment

IMG_1740 (2)

By Jorge Cirett

During the 8th week of the year (February 17th to February 23rd, 2020), at least 35 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, the Sonora Economy Secretariat remarked that several investments are to strengthen the mining industry in 2020. Camimex pointed that mining companies are to invest more than US$200 M in exploration during 2020. Grupo Mexico is to return to the government the mining concession on which the disaster struck Pasta de Conchos mine is located. Camimex is to pursue its “zero accidents” goal. ON EXPLORATION, in Sonora, Colibri Resources has received the permit to drill at the Evelyn project; Riverside Resources reported on field work and sampling at Los Cuarentas; Aloro received a new drilling permit for its Los Venados project. In Chihuahua, Kootenay Silver commenced the phase II drilling program at its Columba project. In Durango, Commander Resources reported on a geophysical survey at Pedro’s project. In Zacatecas, Excellon Resources informed on the exploration status of its Evolución project. In Guanajuato, Vangold secured land access and land use permits on its El Pinguico project. In Jalisco, GoGold Resources launched a second exploration project at Los Ricos District in Jalisco: Monte El Favor.  ON MINING, Starcore International, Americas Gold and Silver,  Torex Gold, First Majestic Silver, Pan American Silver and Fortuna Silver reported Q4 and full year 2019 financial and/or production results. ON FINANCING, Hecla Mining is to redeem $475 M of 7.25% senior notes. Canuc Resources, San Marco Resources and Ridgestone Mining closed various stages of non-brokered private placements for $850 K, C$784.8 K and $715.2 K, respectively. Kootenay Silver is now on the 2020 TSX Venture 50tm. ON RESOURCES AND DEVELOPMENT, Golden Minerals announced promising results from metallurgical test work on concentrates from its Velardeña property. Excellon informed on exploration results on its Platosa mine in Durango. SilverCrest Metals announced a new discovery of a high-grade zone on another vein of the Babicanora area of its Las Chispas property in Sonora. Coeur Mining and Alamos Gold reported mineral reserves and resources to the end of 2019, including figures from Palmarejo (Chihuahua) and the Mulatos District (Sonora), respectively. Goldplay Exploration provided an update on drilling at San Marcial, Sinaloa. ON DEALS AND CORPORATE ISSUES, Tamino Minerals filed a law suit against an individual, in Sonora. Telson informed on the resignation of its CEO, Jose Antonio Berlanga, and the appointment of Ralph Shearing as interim CEO. Sonoro financing discussions were interrupted by the Coronavirus outbreak in China. Mexican Gold and New Found Gold terminated their binding agreement for the acquisition of New Found Gold. GoGold entered into an agreement to acquire The Monte del Favor project in the Los Ricos District in Jalisco. ON SOCIAL RESPONSIBILITY. Fresnillo PLC supports three teams in a robotic regional fair. Grupo Mexico supports social and infrastructure projects in Sombrerete, Zacatecas, with over 300 activities that benefit 3,00 inhabitants. Fresnillo PLC and Frisco are among the companies that integrate the Environmental Protection Club in Zacatecas.).

ON MEXICO ISSUES

  • Jorge Vidal, head of Sonora’s Secretaría de Economía (Economy Secretariat), stated that several investments are to strengthen the mining industry during 2020 in Sonora. He pointed that the investment by Bacanora minerals in the lithium project in Bacadehuachi is one of these, and another one is the investment of the Buenavista zinc project in Cananea, which is to generate 500 jobs with the investment of MXN$350 M pesos (US$18.8 M).
  • Mining companies are to invest more than US$200 M in exploration in 2020. Fresnillo is to reduce its exploration budget to US$135.1 M, from US$150 M on 2019, with about half of those funds to be used in the conversion of resources to reserves. Pan American Silver focuses on brownfield exploration with a budget of US$20 M for the year, on which La Colorada Skarn is to see a 44,000 m drilling program. First Majestic has an exploration budget of US$28.2 M, to be spent in San Dimas (Durango), Santa Elena (Sonora), La Encantada(Coahuila), La Parrilla (Durango) and Del Toro (Zacatecas). Torex Gold is to conduct an infill drilling program that will cost US$13 M on its Media Luna project (Guerrero). Agnico Eagle is to spend US$33.9 M in exploration during 2020, highlighting the funding of the Santa Gertrudis project in Sonora with US$10.4 M and a 42,000 m drilling program at its Pinos Altos mine in Chihuahua.
  • Grupo Mexico is to return to the government the mining concession on which the Pasta de Conchos mine is located. The move is in response to the presidential request to facilitate the retrieval of the remains of over 65 miners deceased in 2006 on the mine located in Coahuila.
  • The Cámara Minera de México (Camimex) vowed to pursue the “zero accidents” goal, pointing that in 2018 the associated companies reported an accident rate of 1.63, which is 3.7% lower than in 2017, and below the national average of 2.04 registered by the Instituto Mexicano del Seguro Social (IMSS).

ON EXPLORATION

  • Excellon Resources Inc. informed on exploration of its 45,000 hectares Evolución property in Zacatecas. Highlights include the expansion of the Lechuzas zone along strike and down dip, and broad intersections of Ag-Pb-Zn, like: 18.7 m @ 27 gpt Ag, 0.8% Pb, 1.1% Zn, 0.1 gpt Au (103 gpt AgEq), including 2.0 m @ 105 gpt Ag, 3.5% Pb, 4.2% Zn, 0.3 gpt Au (416 gpt AgEq); 1.5 m @ 290 gpt Ag, 6.9% Pb, 5.9% Zn, 0.2 gpt Au (779 gpt AgEq); 4.5 m @ 51 gpt Ag, 1.9% Pb, 2.9% Zn, 0.1 gpt Au (244 gpt AgEq); 3.3 m @ 55 gpt Ag, 1.1% Pb, 1.9% Zn (172 gpt Ag). Excellon plans to incorporate all recent work into an updated mineral resource estimate for the project.
  • Kootenay Silver Inc. has commenced a 7,000 m phase II core drilling program at its Columba project in Chihuahua. The follow up drilling will focus on the results of last year’s 41-hole, 6,853 m program which targeted six different veins on the property. Highlighted results from that program comprise: 1.15 m @ 775 gpt Ag; 4.83 m @ 230 gpt Ag; 2.90 m @ 519 gpt Ag; 11.0 m @ 133 gpt Ag (including 5.0 m @ 245 gpt Ag); 2.1 m @ 699 gpt Ag; 1.75 m @ 755 gpt Ag, 1.16 gpt Au; 6.25 m @ 244 gpt Ag; 11.5 m @ 415 gpt Ag (including 4.0 m @ 721 gpt Ag); 4.63 m @ 301 gpt Ag; 39.9 m @ 159 gpt Ag (including 7.45 m @ 650 gpt Ag).
  • Colibri Resource Corp. informed it has received the required drilling permits for its Evelyn project in Sonora. Drill pad construction and other required infrastructure are to commence immediately, followed by drilling.
  • Commander Resources Ltd. reported results from a 70 line-km induced polarization survey (IP) at the Pedro’s project in Durango. The 1,750 ha project was acquired in 2006 from Bearing Resources Ltd. Hematite stained silica rich ridges of angular chalcedony fragments and silicified sedimentary rocks within an angular coarse breccia comprise the outcrops within the Ahuichila conglomerate, within a soil anomaly 4 Km by 1 km and rock chip samples of up to 2.3 gpt Au. Past drilling focused on a Carlin target intercepted up to 10.5 m @ 0.51 gpt Au in oxidized silicified conglomerate.
  • Vangold Mining Corp. has secured a surface land access agreement, and a surface land use agreement for its El Pinguico mine in Guanajuato. The 15-year land access agreement was signed with the Ejido Calderones, providing a short access route to the project, whereas the land use permit was signed with a local land owner for 89.6 hectares.
  • Riverside Resources Inc. reported on field work and sampling at its Los Cuarentas project in Sonora. Selective rock sampling from dumps, float, channel and rock chips returned five of sixteen samples with more than 5 gpt Au: 25.7 gpt Au, 4 gpt Ag; 10.2 gpt Au, 9 gpt Ag; 6.8 gpt Au, 65.1 gpt Ag, 6.27 gpt Au, 120 gpt Ag; 5.3 gpt Au, 6 gpt Ag; 5.1 gpt Au, 75 gpt Ag. Three primary targets have been identified for a prospective drill program in 2020: Santa Rosalia, Santa Rosalia Sur and El Sombrero.
  • GoGold Resources Inc. launched a second exploration project located on the Los Ricos District, called Monte del Favor, in Jalisco. Gogold now owns 35 concessions covering 22,493 hectares in a 35 km trend. The new concessions come with a legacy database of 50 drill holes with highlighted intercepts of: 24.4 m @ 6.4 gpt Au, 1,629 gpt Ag; 28.3 m @ 3.1 gpt Au, 150 gpt Ag; 6.1 m @ 1.1 gpt Au, 201 gpt Ag; 6.1 m @ 2.8 gpt Au, 174 gpt Ag; 20.3 m @ 0.4 gpt Au, 225 gpt Ag.
  • Aloro Mining Corp. informed a new drilling permit has been granted by SEMARANT (The Secretariat of Environment and Natural Resources) for its Los Venados project in Sonora. The permit granted the drilling of 15 holes and the construction of up to 3.38 Km of drill roads. Drilling is to focus in the south area of the project, where a hole cut 32 m of blind strong silicic alteration with brecciated vuggy silica an sulfides, with 7.6 m @ 1.13 gpt Au, 32 gpt Ag.

ON MINING

  • Starcore International Mines Ltd. released production results for the quarter ending on January 31, 2020. In its San Martin mine in Queretaro, 58.3 K tonnes were milled @ 1.84 gpt Au, 30 gpt Ag, recovering 90.1% Au, 50.9% Ag, to produce 3,425 Oz AuEq.
  • Americas Gold and Silver Corp. presented production figures from 2019 and guidance for 2020 of its mining operations, including figures from its Cosalá property in Sinaloa. At Cosalá, 613.8 K tonnes were processed @ 50 gpt Ag, to produce 572 K Oz Ag, 43.3 M Lb Zn and 16.4 M Lb Pb, or 4.68 M Oz AgEq, at cash cost ($18.31) and AISC ($10.90) per Oz Ag produced. Improved access to the Upper Zone at the San Rafael mine will tap higher silver grades in 2020.
  • Torex Gold Resources Inc. reported fourth quarter and fill year 2019 financial and operating results. For the last quarter of 2019, Torex Gold produced 121,151 Oz Au at its El Limón-Guajes mine in Guerrero, at cash cost $617 per Oz and all-in sustaining cost of $767 per Oz, generating EBITDA of $102.2 M and repaying $82.5 M of debt during the period. For the year, Torex produced 454,811 Oz Au at cash cost of $619 per Oz and an AISC of $805 per Oz Au, generating EBITDA of $330.3 M and repaying $164.4 M of debt. Total debt now stands at $174.9 M, while cash at hand is $161.8 M. The Media Luna project resource estimate was updated to 2.24 M Oz AuEq at a grade of 5.5 gpt Au in the indicated category and 4.23 M Oz AuEq at 4.23 gpt Au in the inferred category.
  • First Majestic Silver Corp. announced financial results for the Q4 and year 2019. During the quarter 626.6 K tonnes were processed to produce 3.35 M Oz Ag, 33,176 Oz Au, 0.9 M Lb Pb, or 6.23 M Oz AgEq at cash cost $3.37 per Oz and an AISC of $12.25 per Oz. The production figures for the year are in the table below. The company ended 2019 with cash and cash equivalents of $169 M. First Majestic production 20191
  • Pan American Silver Corp. reported financial results for the year 2019, including figures from its Mexican operations. At La Colorada mine in Zacatecas 768.7 K tonnes were milled @ 361 gpt Ag, 3.10% Zn, 1.65% Pb to produce 8.2 M Oz Ag, 4.61 K Oz Au, 20.97 K tonnes Zn, 11.15 K tonnes Pb, at cash cost $4.30 and AISC of $5.00 (net of by-products). At Dolores, in Chihuahua, 6.78 M tonnes were place on the heaps @ 38 gpt Ag, 0.60 gpt Au, to produce 5.1 M Oz Ag, 117.6 K Oz Au at a cash cost of $3.09 and an AISC of $15.45.
  • Fortuna Silver Mines, Inc. provided 2020 production, cost and capital expenditure guidance for 2020, including figures for its Mexican operations. At San Jose, in Oaxaca, the company aims to produce between 6.6 and 7.3 M Oz Ag, and between 41 and 45 K Oz Au, at a cash cost of US$65.6 to US$72.5 per tonne, and an AISC between US$9.6 to US$11,7 per Oz AgEq. The plan is to process 1.06 M tonnes @ 223 gpt Ag, 1.39 gpt Au, with a capital investment of US$17.1 M, including US$12.2 M for sustaining capital expenditures and US$4.9 M for brownfields exploration programs which include 17,600 m of drilling.

ON FINANCING

  • Hecla Mining Co. announced its agreement to sell $475 M aggregate principal amount of 7.25% senior notes. The notes will mature in February 2028, with the company intending to use the net proceeds together with cash on hand to redeem all of its outstanding 6.875% senior notes due 2021. (San Sebastián, Durango).
  • Canuc Resources Corp. closed a non-brokered private placement for gross proceeds of $850 K, with three officers of the company participating (San Javier, Sonora).
  • San Marco Resources Inc. closed its over-subscribed non-brokered placement, raising C$784.8 K (Espiritu, Sonora).
  • Ridgestone Mining Inc. closed the first tranche of the non-brokered private placement to raise $715.2 K on gross proceeds (Rebeico, Sonora).
  • Kootenay Silver Inc. has been recognized in the 2020 TSX Venture 50tm as one of the top 50 performing companies on the TSX Venture Exchange (Columba, Chihuahua).

ON RESOURCES AND DEVELOPMENT

  • Golden Minerals Co. announced promising results of metallurgical test work on pyrite-arsenopyrite flotation concentrates from its Velardeña properties in Durango. “Gold and silver recoveries of 91% and 92%, respectively, were obtained from cyanide leaching of the bio-oxidized concentrate samples. BIOX* achieved 93% oxidation on the concentrate sample in batch tests, which the Company believes should translate to a 5 to 6-day retention time in a commercial bio-oxidation plant”.
  • Excellon Resources Inc. informed on exploration results at its Platosa mine in Durango. Surface drilling of the NE-1S manto returned high-grade intersections, like 6.6 m @ 1,178 gpt Ag, 6.7% Pb, 8.4% Zn, 0.2 gpt Au. A large hydrothermal system was discovered 11 km from the Platosa mine at the Jaboncillo target, where drilling is aimed to start in the first half of 2020.
  • SilverCrest Metals Inc. announced a new discovery and additional drill results from the Babicanora Norte vein at its Las Chispas property in Sonora. The discovery drill hole intercepted 2.0 m (tw) @ 6,418 gpt AgEq on a faulted extension that received the name of Area 200, on the Babicanora Norte vein, which is now the highest-grade vein in the project. The initial high-grade footprint of this zone is 500 long by 125 m in height, on the vein that is now known for more than 2.0 km. The area 200 shows an average estimated true width (tw) of 1.5 m @ 16.11 gpt Au, 2,166 gpt Ag (3,375 gpt AgEq). Highlighted results for this press release comprise 1.4 m @ 90.22 gpt Au, 9,422 gpt Ag (16,189 gpt AgEq); 2.4 m @ 45.71 gpt Au, 5,577 gpt Ag (9,006 gpt AgEq); 1.6 m @ 75.78 gpt Au, 7,662 gpt Ag (13,345 gpt AgEq).
  • Coeur Mining Inc. reported 2019 mineral reserves and resources, including figures from its Mexican operations. At Palmarejo, in Chihuahua, infill drilling helped replace mining depletion. Proven and probable reserves stand at 11.67 M short tonnes (st) @ 1.83 gpt Au, 135 gpt Ag; measured and indicated resources stand at 8.76 M st @ 1.49 gpt Au, 122 gpt Ag and inferred resources of 6.47 M st @ 1.77 gpt Au, 127 gpt Ag. These amount to 693 K Oz Au, 5.6 M Oz Ag as reserves, 425 K Oz Au, 34.5 M Oz Ag as measured and indicated resources and 367 K Oz Au, 26.3 M Oz Ag as inferred resources.
  • Minera Peña Colorada informed that the Peña Colorada mine in Colima received the visit of PROFEPA (Procuraduría Federal de Protección al Ambiente) and SEMARNAT (Secretaría de Medio Ambiente y Recursos Naturales) personnel to review the compliance of the company on the different permits it has received.
  • Alamos Gold Inc. Reported mineral reserves and resources to year end 2019, including figures from its Mexican Operations. Mineral reserves at Mulatos decreased by 154 K Oz to 1.56 M Oz, with mining depletion partially offset by an 81 K Oz increase at La Yaqui Grande. The exploration budget was increased to $7 M with 14,000 m of drilling planned around near mine targets as well as at La Yaqui Grande and El Carricito. A number of regional exploration targets were identified with the aid of a VTEM survey carried out in 2018.Alamos Gold Mineral Resources to 201911
  • Goldplay Exploration Ltd. provided an update on exploration and drilling of its San Marcial project in Sinaloa. The last holes of 2019 returned 28.7 m @ 92 gpt Ag, including 13.75 m @ 154 gpt Ag in the Faisanes target. At the Guacamayo target 0.60 m @ 138 gpt Ag, 0.56 gpt Au, confirm mineralization 30 m east of the current resource area. Due diligence has commenced on the potential acquisitions of the Plomosas (First Majestic Silver Corp.) and La Trinidad (Mako Mining Corp.).

ON DEALS AND CORPORATE ISSUES

  • Tamino Minerals Inc. has filed a law suit against an individual in Sonora. (El Volcán, Sonora).
  • Newmont Corp. appointed Jim Cooper as General Manager of the Peñasquito unit in Zacatecas.
  • Telson Mining Corp. informed its Chief Executive Officer and member of the Board of Directors, Jose Antonio Berlanga, has resigned due to personal reasons. Mr. Ralph Shearing has been appointed as Interim Chief Executive Officer for the company (Campo Morado, Guerrero).
  • Sonoro Metals Corp. informed discussions regarding debt finance and engineering, procurement and construction contracts with China-based EPC companies has been postponed due to the COVID-19 outbreak (Cerro Caliche, Sonora).
  • Mexican Gold Mining Corp. announced, along New Found Gold Corp., that they have mutually terminated the binding agreement to acquire all of the issued and outstanding shares of NFGC (Las Minas, Veracruz).
  • GoGold Resources Inc. entered into an agreement to acquire a second project located on the Los Ricos District, called Monte del Favor, in Jalisco. The agreement is to acquire 49% of 5 concessions in consideration for US$225 K, and an option to acquire the remaining 51% by paying US$210 K on the second anniversary. The seller will retain 1% NSR on the property, which the company may repurchase by paying US$1 M.

ON SOCIAL RESPONSIBILITY

  • Fresnillo PLC supports science, technology and youthful innovation. As part of the regional robotic fair “FIRST” on the La Laguna region, Fresnillo is to support three teams. The sponsored teams are from Turuachi, Chihuahua, Ciénega de Nuestra Señora, Durango and Fresnillo, Zacatecas. One other team from Caborca, Sonora, is to participates in an international competition in Arizona.
  • Grupo Mexico supports social and infrastructure projects in Sombrerete, Zacatecas. Every year the company performs 300 activities that benefit 3,000 inhabitants. The social programs and productive activities take place in Sombrerete, San Martin, Villa Insurgentes, Ojo de Agua, Charco Blanco, Santa Rita and José de Félix communities. Also, a seed-capital program has financed 29 projects to benefit 20 schools.
  • Peñoles, Fresnillo PLC, and Grupo Frisco among the companies to integrate the Environment Protection Club in Zacatecas. More than 25 companies are to be members of this club, promoted by the State governor, and that will also have universities (Benemérita Universidad Autónoma de Zacatecas and Instituto Politécnico Nacional), the Secretaría de Agua y Medio Ambiente and federal authorities as its memebers.

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: The old train bridge between Nacozari and the Pilares mine, in Sonora, picture by Jorge Cirett

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

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Phreatic breccia

By Miguel A Heredia

During the seventh week of the year (February 10th to February 16th, 2020), at least 29 press releases were announced by companies working in Mexico, with seven commenting on Mexican issues, five disclosing deals and corporate issues, five announcing financial rounds, four informing on exploration results, three discussing issues on social responsibility, three reporting on resources and development of their mining projects, and two communicating production results.  ON MEXICO ISSUES, Americas Gold and Silver announced that a group of individuals has illegally blockaded the access to the facilities at its Cosala mine in Sinaloa. Javier Corral, Governor of Chihuahua and Francisco Quiroja, Undersecretary of Mining, installed the Regional Development Committee for Mining Zones in the State of Chihuahua 2020.  Luiz Camargo, Director of Compañía Minera Cuzcatlán (Fortuna Silver) stated that the main challenge of mining is to break the paradigms of old and rudimentary industry, showing that modern mining generates shared growth and benefits in the communities.  Fernando Alanis, President of the Mining Chamber of México declared that the mining industry is lever of social and economic development.  Francisco Quiroga, Undersecretary of Mining, reported that the Mexican Federal Government applied for four Li mining concessions. The Directorate of the Mining Fund, attached to the Ministry of Economy, has organized a workshop in Mexico City to train the presentation of infrastructure projects for mining states and municipalities. BNamericas analyzes the most important studies that will move the threads of key mining projects in Mexico. ON EXPLORATION, In Baja California Norte, One World Lithium applied for a drilling permit to continue the exploration of its Salar del Diablo project.  In Sonora, Silver Viper released drilling results from its El Rubi project, and Tamino Minerals provided an overview on acquisitions and its 2020-2021 exploration expenditure guidance (Amalia project, Sonora).In Zacatecas, Alien commissioned TMC (geophysical company) to carry out a ground IP survey at its Donovan 2 Cu-Au project. ON MINING, Avino reported annual 2019 production results from its Avino mine in Durango and provided an outlook for 2020. Capstone reported Q4, 2019 production and financial results from its Cozamine mine in Zacatecas. ON FINANCING, Hecla announced its intention to offer $475M aggregate of its senior notes due 2028. (San Sebastian mine, Durango). Millrock closed a non-brokered private placement for gross proceeds of $1.5M (Batamote project, Sonora). Premier Gold announced its intention to increase its previously announced offer for gross proceeds of up to $38M (Mercedes mine, Sonora). Santacruz revealed its intention to conduct a non-brokered private placement to raise gross proceeds of up to CAD $3M (Veta Grande mine, Zacatecas). Telson closed a first tranche of its non-brokered private placement for gross proceeds of $1.94M (Campo Morado mine, Guerrero). ON RESOURCES AND DEVELOPMENT, Discovery Metals reported drill results from its Cordero project in Chihuahua. Pan American announced step-out drilling results from its La Colorada project in Zacatecas. Newmont Corporation reported mineral reserves and resources as of December 31, 2019 for its Peñasquito mine in Zacatecas.  ON DEALS AND CORPORATE ISSUES, Mexican Gold announced completion of continuance and name change (Las Minas, Veracruz). Mithril reported results of its general meeting of shareholders (Copalquin project, Durango). Oroco announced its option agreement with Altamura Copper Corp., and the Altamura shareholders (Santo Tomás project, Sinaloa). One World Lithium announced the appointment of its VP, Corporate Development. The company granted to its VP, Corporate Development and a consultant, incentive stock option to acquire up to 500K and 200K common shares respectively at a price of $0.10 per share (Salar del Diablo project, Baja California Norte). Endeavour Silver announced the appointment of its Director and Project Development to oversee the development of its Terronera, Jalisco and Parral, Chihuahua mine projects. ON SOCIAL RESPONSIBILITY, Minera Peñasquito and the Cedros community, in Zacatecas, reached an agreement to ensure the water supply for the entire community for a period of 30 years. Minera Penmont (Fresnillo plc) and the Metallurgical Mining Trade Union “FRENTE” inaugurated the sports facilities in Caborca, Sonora. The Institute for Training for Work (Icatson) will train workers in the mining sector in Sonora to raise the productivity of the mining companies in the state.

ON MEXICO ISSUES

  • American Gold and Silver Corporation, announced that a group of individuals, including a small minority of the Company’s unionized workers have illegally blockaded the access to the facilities at its Cosala mine in Sinaloa. After weeks of interruptions of the mining activities, the company is evaluating the total and indefinite closure of the mine and its processing plant.
  • Javier Corral, Governor of Chihuahua, and the Undersecretary of Mining, Francisco Quiroga, installed the Regional Development Committee for Mining Zones in the State of Chihuahua 2020. Javier Corral indicated that with the new federal administration the operation of the Mining Fund changed, however, the Committee was installed because there are pending projects of 2017 and 2018, even with resources payable to municipalities. He also informed that from the proceeds of the Mining Fund from 2014 to 2017, MXP $1,281M was allocated to Chihuahua, but he still has not received another MXP $49M.
  • Luiz Camargo, Director of Compañía Minera Cuzcatlán (Fortuna Silver), stated that the main challenge of mining is to break the paradigms of old and rudimentary industry, showing that modern mining generates shared growth and benefits in the communities. He considered that mining should be understood as a sector with various actors, such as government, community and company, with common objectives.
  • Fernando Alanis, President of the Mining Chamber of Mexico, declared that the mining industry is lever of social and economic development.
  • Francisco Quiroga, Undersecretary of Mining, reported that the Mexican Federal Government applied for four Li mining concessions for the Geological Survey of Mexico (SGM). Two of the concessions are in Sonora, one in Jalisco and one in Puebla.
  • The Directorate of the Mining Fund, attached to the Ministry of Economy, has organized a workshop in Mexico City to train the presentation of infrastructure projects for mining states and municipalities. The aims of the workshop are to support federal entities and mining municipalities, sharing with state government officials the experience and lessons learned from the Mining Fund’s work team, in order to expedite the process of integrating files and required documentation to present the projects to the regional committees for approval and then submit the requests of ministers to the technical committee of the Mining Fund trust.
  • BNamericas, analyzes the most important PFS studies that will move the threads of key mining projects in Mexico, whose combined capital expenditure will be around USD $1.3B. It reviews the PFS studies of Media Luna, Guerrero (Torex Gold); the Sonora Li project (Bacanora Lithium-Ganfeng Li); the San Nicolas project, Zacatecas (Teck  Resources); the Las Chispas, Sonora (SilverCrest); and the Terroneras, Jalisco (Endeavour).

ON EXPLORATION

  • One World Lithium Inc., applied for a drilling permit to continue the exploration of its Salar del Diablo project in Baja California Norte. The company expects to receive the approval in the next days and move a skid mounted 4X4 all-terrain rig to drill a third hole 50Km south of the DDH-2. One World Lithium is working with a technology development company to test a new process to extract Li from a brine stream at near zero greenhouse gasses emission.
  • Silver Viper Minerals Corp., announced drilling results from four holes collared at its El Rubi project, and expanded the mineralized structure 250m along strike. Drilling results indicate the presence of adjacent parallel mineralized structures. The El Rubi target is open to the north, south, and at depth. Significant interceptions were encountered in hole LV19-212 with 0.68 g/ton Au and 40.3 g/t Ag (1.25 g/t AuEq) over 4m of true width, and 1.85 g/t Au, 20 g/t Ag (2.14 g/t AuEq) over a true width of 3.6m, including 7.03 g/t Au and 45 g/t Ag (7.67 g/t AuEq) over a true width of 0.8m, and a final interval of 3.47 g/t Au and 5 g/t Ag (3.54 g/t AuEq) over a true width of 0.8m; hole LV20-213 with 0.84 g/t Au and 36 g/t Ag (1.37 g/t AuEq) over a true width of 8.6m, including 2.52 g/t Au and 71 g/t Ag (3.53 g/t AuEq) over a true width of 0.6m; hole LV20-214 with 1.8 g/t Au and 107 g/t Ag (3.34 g/t AuEq) over a true width of 3m, including 3.9 g/t Au and 187 g/t Ag (6.57 g/t AuEq) over a true width of 0.8m; and hole LV20-215 with 2.18 g/t Au and 147 g/t Ag (4.27 g/t AuEq) over a true width of 1.8m, and 14.4 g/t Au and 86 g/t Ag (15.6 g/t AuEq) over a true width of 6.3m, including 196.3 g/t Au and 984 g/t Ag (210.4 g/t AuEq) over a true width of 0.45m.
  • Tamino Minerals Inc., provided an overview on acquisitions and 2020-2021 exploration expenditure guidance. Its strategy is to identify and acquire high-quality, advanced-stage exploration projects and discover early-stage opportunities that can be strategically tested and quickly progressed to key decision points. Tamino plans to spend in exploration $5M in the period 2020-2021: $2M in the Amalia project, Sonora, $1.2M in El Volcan project, Sonora, and $1.8M on acquisitions and small exploration projects.
  • Alien Metals Ltd., commissioned TMC  Exploración S de RL de CV de México to carry out a ground IP survey at its Donovan 2 Cu-Au project in Zacatecas. Aim of this IP survey is to generate high-priority drill targets.

ON MINING

  • Avino Silver & Gold Mines Ltd., announced annual 2019 production results from its Avino mine in Durango and provided an outlook for 2020. It produced 958.8K Oz Ag, 6,912 Oz Au, and 4.97M Lb Cu (2.39M Oz AgEq) from its Avino mine, San Gonzalo mine, and the Historic Above Ground Stockpiles. The company also provided an outlook for 2020 and expects to spend a total of USD $7-8M. It plans to drill 11,500m at its Avino mine to explore Avino, Avino West, the Santiago Vein, and La Potosina targets, and make some plant improvements.
  • Capstone Mining Corp., reported Q4, 2019 production and financial results from its Cozamine mine in Zacatecas. It milled 294,000 tonnes of 1.53% Cu, 1.52% Zn, and 48 g/t Ag, recovering 94.6%, 70.2%, and 78.7% respectively to produce 9.4M Lb Cu, 4.5M Lb Zn, and 365K Oz Ag, at a cash cost of USD $0.91 per Lb of payable Cu produced. Capstone reported USD $29.5M of revenues and an EBIDTA of USDS $11M. Annual 2019 production was 1,146,000 tonnes of 1.50% Cu, 1.07% Zn, and 47 g/t Ag, recovering 94.4%, 68.2%, and 77.7% respectively, to produce 35.8M Lb Cu, 18.5M Lb Zn, and 1.34M Oz Ag at a cash cost of USD $0.90 per Lb of payable Cu produced. Capstone reported USD $118.4M of revenues and an EBIDTA of USD $52M for the full year 2019.

ON FINANCING

  • Hecla Mining Company, announced its intention to offer $475M aggregate of its senior notes due 2028. The Company intends to use the net proceeds from the offering, together with cash on hand, to redeem all of its outstanding 6.875% senior notes due 2021 and to pay fees and expenses in connection with the offering and the redemption (San Sebastian mine, Durango).
  • Millrock Resources Inc., closed a non-brokered private placement for gross proceeds of $1.5M. Net proceeds will be used to advance exploration of its projects, for generation of new projects, for marketing of its projects, and for general corporate purposes (Batamote project, Sonora).
  • Premier Gold Mines Limited, announced its plan to increase the size of its previously announced offer to raise gross proceeds of up to $38M. Part of the gross proceeds will be used for the development, expansion, and working capital requirements of its Mercedes mine in Sonora.
  • Santacruz Silver Mining Ltd., revealed its intention to conduct, in one or more tranches, a non-brokered private placement to raise gross proceeds of up to CAD $3M.Net proceeds will be used for general working capital and corporate purposes (Veta Grande mine, Zacatecas).
  • Telson Mining Corporation, closed a first tranche of a non-brokered private placement for gross proceeds of $1.94M

ON RESOURCES AND DEVELOPMENT

  •  Discovery Metals Corp., reported drilling results from its Cordero project in Chihuahua. These results are part of the phase 1 of 30,000-35,000m programmed to define and delineate areas of higher grade mineralization within the existing mineral resource estimate. Significant results were encountered in hole C19-304 with 0.38 g/t Au, 74 g/t Ag, 1.1% Pb, and 1.1% Zn (188 g/t AgEq) over 105.90m, including 0.41 g/t Au, 104 g/t Ag, 1.5% Pb, and 1.4% Zn (250 g/t AgEq) over 26m; including 0.42 g/t Au, 78 g/t Ag, 1.1% Pb, and 0.9% Zn over 30.6m; and including 0.52 g/t Au, 110 g/t Ag, 1.8% Pb, and 2.1% Zn over 21.1m; hole C19-305 with 0.05 g/t Au, 74 g/t Ag, 0.5% Pb, and 0.5% Zn (113 g/t AgEq) over 65.0m, including 0.12 g/t Au, 122 g/t Ag, 1.6% Pb, and 1.5% Zn (249 g/t AgEq) over 16m; and hole C19-297 with 0.21 g/t Au, 522 g/t Ag, 6.6% Pb, and 18.3% Zn (1,533 g/t AgEq) over 1.1m and 0.09 g/t Au, 931 g/t Ag, 6.0% Pb, and 10.1% Zn (1,569 g/t AgEq) over 0.6m. To date, 23 holes totaling 8,214m have been collared at Cordero project, with pending results of 15 holes yet.
  • Pan American Silver Corp., announced results from 14 step-out drilling holes collared at its la Colorada Skarn deposit in Zacatecas. Drill highlights include hole U-88-19 with 60 g/t Ag, 0.17% Cu, 2.7% Pb, and 4.5% Zn over 270.9m, including 85 g/t Ag, 0.18% Cu, 3.9% Pb, and 6.4% Zn; hole U-105-19 with 30 g/t Ag, 0.15% Cu, 2.4% Pb, and 3.5% Zn over 192.5m, including 29 g/t Ag, 0.14% Cu, 3% Pb, and 4.5% Zn over 105.6m; hole D-30-03-19 with 35 g/t Ag, 0.2% Cu, 2% Pb, and 3.3% Zn over 76.1m; hole D-30-05-19 with 51 g/t Ag, 0.28% Cu, 1.8% Pb, and 4.6% Zn over 62.5m; hole D-81-01-19 with 54 g/t Ag, 1.15% Cu, 0.4% Pb, and 2.5% Zn over 32.9m, and 78 g/t Ag, 0.5% Cu, 0.3% Pb, and 3.8% Zn over 75.9m, and 133 g/t Ag, 0.88% Cu, 0.25% Pb, and 3.4% Zn over 19.2m; hole U-87-19 with 33 g/t Ag, 0.09% Cu, 2.1% Pb, and 4.95% Zn over 47.2m; and hole S-81-19 with 54 g/t Ag, 0.05% Cu, 2% Pb, and 10.3% Zn over 24.5m, including 43 g/t Ag, 0.16% Cu, 1% Pb, and 3.5% Zn over 28.8m. Since the discovery of the La Colorada Skarn Deposit in 2018, Pan American has drilled approximately 60,000m. In 2020, the company plans to invest USD $16-18M on 44,000m of infill and expansion drilling of the current resource estimate and early stage engineering and metallurgical testing.
  • Newmont Corporation, reported mineral reserves and resources as of December 31, 2019 for its Peñasquito mine in Zacatecas. Proven reserves are 109.7M of tonnes of 0.63 g/t Au and 38 g/t Ag for a total of 2.22M Oz Au and 134.4M Oz Ag contained. Probable reserves are 331.8M tonnes of 0.56 g/t Au and 32 g/t Ag for a total of 5.86M Oz Au and 337M Oz Ag contained. Proven + Probable reserves are 441.5M tonnes of 0.57 g/t Au and 33 g/t Ag for a total of 8.08M Oz Au and 471.36M Oz Ag contained. Newmont also reported measured resources of 37.3M tonnes of 0.25 g/t Ag and 27 g/t Ag for a total of 300K Oz Au and 32M Oz Ag contained. Indicated resources are 304M tonnes of 0.25 g/t Au and 25 g/t Ag for a total of 2.44M Oz Au and 240.17M Oz Ag contained. Measured + Indicated resources are 341.3M tonnes of 0.25 g/t Au and 25 g/t Ag for a total of 2.74M Oz Au and 272.17M Oz Ag contained. Inferred resources are 193.6M tonnes of 0.34 g/t Au and 26 g/t Ag for a total of 2.09M Oz Au and 161.6M Oz Ag contained. For base metals, Newmont reported proven reserves of 108.1M tonnes of 0.93% Zn and 0.39% Pb for a total of 2.24B Lb Zn and 896M Lb Pb contained. Probable reserves are 330.5M tonnes of 0.71% Zn and 0.32% Pb for a total of 5.29B Lb Zn and 2.17B Lb Pb contained. Proven + probable reserves are 438.6M tonnes of 0.77% Zn and 0.34% Pb for a total of 7.53B Lb Zn and 3.07B Lb Pb contained. It also reported measured resources of 36M tonnes of 0.64% Zn and 0.28% Pb for a total of 515.2M Lb Zn and 224M Lb Pb contained. Indicated resources are 293.1M tonnes of 0.55% Zn and 0.24% Pb for a total of 3.63B Lb Zn and 1.57B Lb Pb. Measured + Indicated resources are 438.1M tonnes of 0.77% Zn and 0.34% Pb for a total of 7.53B Lb Zn and 3.07B Lb Pb. Inferred resources are 188.6M tonnes of 0.5% Zn and 0.27% Pb for a total of 2.13B Lb Zn and 1.14B Lb Pb. (Resources are reported exclusive of reserves.)

ON DEALS AND CORPORATE ISSUES

  • Mexican Gold Corp., reported that it has completed its announced continuation of its incorporation from Ontario to British Columbia and its name change to Mexican Gold Mining Corporation (Las Minas project, Veracruz).
  • Mithril Resources Limited, reported results of its general meeting of shareholders. All resolutions were put to vote and were passed (Copalquin project, Durango).
  • Oroco Resource Corp., announced its option agreement with Altamura Copper Corp., and Altamura shareholders. The exercise of this option will give Oroco a controlling interest in the Santo Tomás project in Sinaloa. Oroco is moving to the next phase of its development plan to progress the property to a NI 43-101 resource.
  • Bacanora Lithium plc, announced results from its annual general meeting of shareholders (Bacanora project, Sonora).
  • One World Lithium, announced the appointment of its VP, Corporate Development. The company granted to its VP, Corporate Development and a consultant, incentive stock option to acquire up to 500K and 200K common shares respectively at a price of $0.10 per share (Salar del Diablo project, Baja California Norte).
  • Endeavour Silver , announced the appointment of its Director and Project Development to oversee the development of its Terronera, Jalisco and Parral, Chihuahua mine projects. It also announced the resignation of its VP New Projects.

 ON SOCIAL RESPONSIBILITY

  • Minera Peñasquito and the Cedros community in Zacatecas, reached an agreement to ensure the water supply for the entire community for a period of 30 years. The plan includes wells, drinking water and the commitment by the municipality to the operation, since both the public system and the infrastructure and distribution networks belong to it. The plan had been recognized by the authority, accepted and valued as a contribution to sustainable development for the benefit of the community.
  • Minera Penmont (Fresnillo plc) and the Metallurgical Mining Trade Union “FRENTE” inaugurated the sports facilities in Caborca, Sonora, which will benefit more than 2,000 people, because they provide spaces for family life and the promotion of healthy lifestyles.
  • The Institute for Training for Work (Ictason), will train workers in the mining sector and their families to raise the productivity of the mining companies in the state.

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 phreatic breccia in an epithermal hot spring prospect in Guanajuato, Mexico.  Photo by Miguel A Heredia.