Quartz stockwork veining in andesites

By Miguel A Heredia

During the 18^th week of the year (April 29^th to May 5^th, 2024), at least 27 press releases were announced by companies working in Mexico, and 2 news published by the media with eight communicating production and financial results, seven announcing financing rounds, six reporting resources and development of their properties, five disclosing deals and corporate issues, and three commenting on Mexican issues.  ON MEXICO ISSUES, At least 670 workers at the Velardeña mine, owned by the company Peñoles, located in the municipality of Cuencamé, Durango, closed the facilities of the mining complex to demand payment of profits. Mining companies such as Grupo Mexico, Torex Gold, and Cuzcatlán (Fortuna Silver) lose up to 15% of their profits due to the “Mexican superpeso”. Silver Tiger reported the best drilling intercepts in Mexico on the first week of May, 2024. ON EXPLORATION, no relevant news. ON MINING, Gold Resource announced it will reschedule release of its Q1, 2024 financial results (Don David, Oaxaca). Americas Gold and Silver provided Q1 2024 production results from its Cosala mine, Sinaloa. Luca Mining reported Q4 and full year 2023 production and financial results from their Campo Morado mine in Guerrero and Tahuehueto mine in Durango. Avino announced that it plans to release its Q1, 2024 financial results on Wednesday, May 8, 2024 (Avino mine, Durango). Coeur reported Q1, 2024 production results from its Palmarejo mine in Chihuahua. Bear Creek announced 2023 year end production and financial results from its Mercedes mine in Sonora. Capstone reported Q1 2024 production results from its Cozamin mine in Zacatecas. Santacruz announced full year 2023 production results from its Zimapan mine in Hidalgo. ON FINANCING, Fortuna Silver has renewed its share repurchase program, allowing for the repurchase of up to five percent of its outstanding common shares (San Jose mine, Oaxaca). Guanajuato Silver gave notice of an upsizing of its previously announced brokered private placement for an additional CAD $2,250,000 (El Cubo, Valenciana, and San Ignacio mines, Guanajuato). Impact Silver announced a non-brokered private placement for gross proceeds of up to $3,200,000 (Plomosas mine, Chihuahua). Infinitum Copper has amended the terms of its previously announced private placement and now it plans to rise gross proceeds of up to CAD $450,000 (La Adelita project, Sonora). Minaurum closed its previously announced private placement for gross proceeds of CAD $5,696,250 (Alamos Silver project, Sonora). Guanajuato Silver announced that it has filed an amended and restated offering document related to its previously announced brokered financing (El Cubo, Valenciana, and San Ignacio mines, Guanajuato). Infinitum Copper closed the first tranche of its previously announced private placement for gross proceeds of $1,452,600, and upsized its previously announced non-brokered listed issuer financing exemption (LIFE) private placement for gross proceeds of up to $1,700,000.  ON RESOURCES AND DEVELOPMENT, Luca Mining has successfully completed metallurgical test work for a new copper concentrate at its Campo Morado mine in Guerrero. Minera Alamos provided operational update on their Santana and Cerro de Oro properties located in Sonora and Zacatecas respectively, as well as the acquisition of Suaqui Verde project in Sonora. Torex Gold provided a Q1, 2024 update on its Media Luna property in Guerrero. Silver Tiger provided an update on the ongoing pre-feasibility study drilling program on the Stockwork gold deposit on its El Tigre project in Sonora. Minera Alamos provided an update on Cobre 4H and copper assets. Xali Gold provided an update on the company´s activities in Mexico. ON DEALS AND CORPORATE ISSUES, Prismo announced the appointment of its new President (Palos Verdes project, Sinaloa). Americas Gold and Silver announced the appointment of its new Chief Operating Officer (Cosala mine, Sinaloa). GR Silver has enhanced its financial position by signing a definitive agreement to sell Marlin Gold to WP Servicios Industriales S.A. de C.V. (Plomosas project, Sinaloa). Royalties Inc., announced advances on two of its major investments in Mexico (Bilbao project, Zacatecas).  Sonoran Desert received a Management Cease Trade Order (MCTO) due to a delay in filing required financial documents for the year ended December 31, 2023.  ON SOCIAL RESPONSIBILITY,  no relevant news.

ON MEXICO ISSUE

• At least 670 workers at the Velardeña mine, owned by the company Peñoles, located in the municipality of Cuencamé, Durango, closed the facilities of the mining complex to demand payment of profits, this after last April the company reported that there will be no profits because the mine It was declared zero last year. Workers accused the local leaders of the “Frente” Mining Union and the national Carlos Pavón Campos of being at the service of Peñoles, since, they say, this is the third time that the company represented by Alejandro Baillères does not make the corresponding payment of the profits. The claim of the 670 workers of the Velardeña mine is added to the demands of the United States government to Industrias Peñoles to review the working conditions in one of its mines. This request responds to a request from the National Union of Mining, Metallurgical, Steel and Steel Workers. Similar ones from the Mexican Republic, headed by  senator Napoleón Gómez Urrutia of the Morena political party, who points out the alleged denial of the rights of free association and collective bargaining in one of the group’s mines. The Velardeña mine began operations in May 2013 and is currently the most important Zinc mine of Industrias Peñoles and the second largest nationally, which places Durango as one of the three main zinc-producing states in Mexico.
• Mining companies lose up to 15% of their profits due to the “Mexican superpeso”. The results of Grupo México, Torex Gold and Cuzcatlán were weak due to the appreciation of the Mexican currency. As the Mexican peso gains ground against the dollar, mining companies such as Grupo México, Torex Gold or Cuzcatlán face a complex environment because mineral export contracts are handled in US currency, which caused profit margins to be impacted by up to a 15 percent.
• Silver Tiger Metals Inc., reported the best drilling intercepts in Mexico on the first week of May, 2024. Details are shown in the table below:

ON EXPLORATION

• No relevant news.

ON MINING

• Gold Resource Corporation announced it will reschedule release of its Q1, 2024 financial results. The preliminary results announced on April 15, 2024, remain unchanged. The conference call will be hosted on Friday, May 3, 2024, at 12:00 p.m. Eastern Time (10:00 a.m. Mountain Time) (Don David, Oaxaca).
• Americas Gold and Silver Corporation provided Q1 2024 production results from its Cosala mine, Sinaloa. The company produced approximately 295K Oz Ag, 2.8M Lb Pb, and 8M Lb Zn. Based on the current higher silver and copper price, the company decided to expedite the development of its 100% owned EC120 project at the Cosala operation. Initial access to the Zone 120 deposit occurred in Q3-2023 from the San Rafael Upper Zone development. In addition, the company continues mining and processing silver-zinc ore from the San Rafael Main and Upper Zones and is pleased with the increase in zinc prices so far in the second quarter”. 
• Luca Mining Corp., reported Q4 and full year 2023 production and financial results from their Campo Morado mine in Guerrero and Tahuehueto mine in Durango. In Q4, 2023, Luca processed in the two plants about 130,120 tonnes of 1.4 g/t Au, 76 g/t Ag, 2.5% Zn, 0.64% Cu, and 0.7% Pb with metallurgical recoveries of 53.8%, 49.2%, 84.1%, 80.2%, and 62.6% respectively to produce 3,155 Oz Au, 155.8K Oz Ag, 6.1M Lb Pb, 1.5M Lb Cu, and 1.25M Lb Zn (11,809 Oz AuEq). Campo Morado accounted for 8,658 Oz AuEq, which represents 73% of the total production and Tahuehueto contributed 3,150 Oz AuEq, representing 27% of the total production. Cash cost and All Includes Sustaining Cost (AISC) were USD $1,244 and USD $1,437 per Oz AuEq respectively. In the full year 2023, the company processed in the two plants about 665,132 tonnes of 1.29 g/t Au, 75 g/t Ag, 2.8% Zn, 0.59% Cu, and 0.7% Pb with metallurgical recoveries of 33.2%, 46.3%, 80.4%, 66.6%, and 54.3% respectively to produce 11,832 Oz Au, 688.1K Oz Ag, 34.1M Lb Pb, 5.86M Lb Cu, and 6.02 Lb Pb (55,719 Oz AuEq). Campo Morado accounted for 43,089 Oz AuEq, which represents 73% of the total production and Tahuehueto contributed 12,630 Oz AuEq, representing 27% of the total production. Cash cost and AISC were USD $1,219 and USD $1,405 per Oz AuEq respectively. The company sold 9,951 Oz Au, 495.5K Oz Ag, 24.98 M Lb Zn, 3.8M Lb Cu, and 1.8M Lb Pb at average realized prices of USD $1,958/ Oz Au, USD $23.37/Oz Ag, USD $2,514/tonne Zn, USD $8,394/tonne Cu, and USD $2,093/tonne Pb. The company reported revenues of  $68.27M; mine operating profit of $1.47M; mine operating cashflow before taxes of $5.5M; net loss of $15M; EBITDA of $ (6.4M), and adjusted EBITDA of $(5.67M).
• Avino Silver & Gold Mines Ltd., announced that it plans to release its Q1, 2024 financial results on Wednesday, May 8, 2024 (Avino mine, Durango).
• Coeur Mining Inc., reported Q1, 2024 production results from its Palmarejo mine in Chihuahua. The company milled 500,747 tonnes of 1.28 g/t Au and 135 g/t Ag, with metallurgical recoveries of 95.2% and 83.7% respectively to produce 33,160 Oz Au and 1.82M Oz Ag. Coeur sold 33,462 Oz Au and 1.8M Oz Ag at average realized prices of USD $1,611 per Oz Au and USD $23.64 per Oz Ag. The company also reported (all currency expressed in US dollars) metal sales for $96.4M; cost applicable to sales for $54.3M; adjusted cost applicable to sales (CAS) of $901 per Oz Au; adjusted CAS of $13.18 per Oz Ag; exploration expenses for $2.5M; cash flow from operating activities for $25.6M; sustaining capital expenditures (excludes capital lease payments) for $4.7M; development capital expenditures for $68M; and free cash flow of $18.8M. The company announced that the full year 2024 production is expected to be 95K-103K Oz Au and 5.9-6.7M Oz Ag; the CAS is expected to be $1,075-1275 per Oz Au and $16.5-17.5 per Oz Ag; and the capital expenditures are expected to be $32-42M consisting primarily of sustaining capital and underground development.
• Bear Creek Mining Corporation announced 2023 year end production and financial results from its Mercedes mine in Sonora. The company mined 496.7K tonnes of 2.93 g/t Au and processed 521.8K tonnes of 2.77 g/t Au with a metallurgical recovery of 94.92% to produce 43,860 Oz Au and 167K Oz Ag. It sold 44,403 Oz Au at a realized average price of USD $1,960 per Oz Au. Cash and all in sustaining costs (AISC) were USD $1,376 and USD $1,769 per Oz Au sold respectively. Bear Creek also reported revenue of USD $89.15M; comprehensive earnings (loss) after taxes of USD ($38.98M); cash generated from (used in) operating activities of USD ($1.46M); cash generated from (used in) investing activities of USD ($16.4M); and generated from (used in) financing activities of USD $18.34M.
• Capstone Copper Corp., reported Q1 2024 production results from its Cozamin mine in Zacatecas.  The company produced 13.45M Lb Cu at cash cost of USD $1.93 per Lb Cu produced.
• Santacruz Silver Mining Ltd., announced full year 2023 production results from its Zimapan mine in Hidalgo. The company milled 769,303 tonnes of 75 g/t Ag, 2.3% Zn, 0.8% Pb, and 0.32% Cu to produce 1.36M Oz Ag, 30.05M Lb Zn, 10.56M Lb Pb, and 2.81M Lb Cu (4.31M Oz AgEq).

ON FINANCING

• Fortuna Silver Mines Inc., has been allowed by the Toronto Stock Exchange, the New York Stock Exchange and/or alternative Canadian trading systems to renew its share repurchase program, allowing for the repurchase of up to five percent of its outstanding common shares. The company believes that its shares may not adequately reflect their underlying value in the market. Pursuant to the normal course issuer bid, Fortuna is permitted to repurchase up to 15,287,201 common shares, being five percent of its outstanding 305,744,039 common shares as of April 26, 2024. Common shares purchased under the NCIB will be cancelled. The program will run until May 1, 2025, or until the maximum allowable shares are acquired, based on various factors including financial performance and available cash flow. Purchases will be made through open market transactions and in compliance with applicable securities laws (San Jose mine, Oaxaca).
• Guanajuato Silver Company Ltd., gave notice of an upsizing of its previously announced brokered private placement for an additional CAD $2,250,000. The aggregate gross proceeds to the company will now be up to CAD $10,875,000 under the combined Listed Issuer Financing Exemption (“LIFE”) and Private Placement. Net proceeds will be used to   add to the company’s underground fleet and ramp up production at Guanajuato Silver’s producing mines in Guanajuato and Durango;  fund certain improvements to expand and modernize the processing facilities at the Topia mine, Durango and mill complex including capital expenditures and related costs; fund corporate head office general and administrative expenses including legal, audit, overhead and salaries for the ensuing 12 months; and carry out detailed exploration at Guanajuato Silver’s mineral properties, particularly San Ignacio and Valenciana.
• Impact Silver Corp., announced a non-brokered private placement for gross proceeds of up to $3,200,000 from the sale of up to 11,428,572 units (the “LIFE Units”) at a price of $0.28 per LIFE Unit, and up to $3,000,000 from the sale of up to 11,111,111 standard private placement units (the “Standard PP Units”) at $0.27 per Standard PP Unit. The company intends to use the proceeds from the Offering to accelerate exploration activity at its Plomosas high-grade zinc-lead-silver property located in Chihuahua, Mexico, further develop its prolific silver assets at its legacy Royal Mines of Zacualpan district, as well as invest in operational improvements to improve productivity and throughput as the price of silver nears 52-week highs.
• Infinitum Copper Corp., has amended the terms of its previously announced private placement and now it plans to rise gross proceeds of up to CAD $450,000 from the sale of up to 11,250,000 units of the company at a price of CAD $0.04 per unit. Gross proceeds of the offering will be used for the establishment of mining operations at the La Adelita project in Sonora and for general corporate purposes.
• Minaurum Gold Inc., closed its previously announced private placement for gross proceeds of CAD $5,696,250 from the sale of 22,785,000 units at a price of CAD $0.25 per unit. Each unit consists of one common share of the company and one half of one common share purchase warrant. Each warrant shall entitle the holder to purchase one common share of the company at a price of CAD $0.34 at any time on or before May 2, 2024. Net proceeds will be used to complete a National Instrument 43-101 resource at Alamos Silver project in Sonora.
• Guanajuato Silver Company Ltd., announced that it has filed an amended and restated offering document related to its previously announced brokered financing for gross proceeds of up to CAD $10,875,000. The offering is anticipated to close on or about the week of May 6, 2024, or such later date as the company and the agents may determine (El Cubo, Valenciana, and San Ignacio mines, Guanajuato).
• Infinitum Copper Corp., closed the first tranche of its previously announced private placement for gross proceeds of $1,452,600, and upsized its previously announced non-brokered listed issuer financing exemption (LIFE) private placement for gross proceeds of up to $1,700,000. The upsized offering is for up to 10,625,000 units of the company at a price of $0.16 per unit.

ON RESOURCES AND DEVELOPMENT

• Luca Mining Corporation has successfully completed metallurgical test work for a new copper concentrate at its Campo Morado mine in Guerrero, resulting in the production of higher value copper, zinc, and lead concentrates. Ongoing improvements at Campo Morado have led to increased copper recovery and higher concentrate grades. Open circuit, bulk rougher results returned copper recovery of between 80 and 93%. Testing indicates that copper grades as high as 28% Cu are achievable compared to current grades of 15-18%Cu in the bulk concentrate. The company’s operations are poised for advancement following the successful test work.
• Minera Alamos Inc., provided operational update on their Santana and Cerro de Oro properties located in Sonora and Zacatecas respectively, as well on the acquisition of Suaqui Verde property in Sonora.  The company discussed operational updates at the Santana project, Sonora, including plans to optimize leach pad capacity for increased gold production. While production was reduced, site preparation works including the conclusion of pre-stripping activities in advance of a transition to the Nicho Main deposit. An updated development plan for the project which was completed late in 2023 has now been initiated and includes increased mining and stacking of approximately 25K Oz Au over a 12-month period that will commence in May 2024. Additionally, it mentioned that the engineering work continues to progress in the Cerro de Oro project, Zacatecas to advance pre-development activities to coincide with the ultimate receipt of permits and a construction decision for the project. Included in 2024 will be further metallurgical optimization studies, detailed engineering design and additional exploration drilling aimed at filling in and potentially expanding the areas of know mineralization. The acquisition of the Suaqui Verde copper project in Sonora is noted as a significant development, allowing for internal engineering studies towards establishing a regional copper production “hub” by the combination of Los Verdes, Potreritos and Suaqui Verde properties, in the area where the company maintains a significant presence.
• Torex Gold Resources Inc., Torex Gold provided a Q1, 2024 update on its Media Luna property in Guerrero. The company has made significant progress in procurement, with 78% completion, and underground development, with 94% of bolts placed for the Guajes conveyor. The project’s execution plan remains on track, with no changes to overall end dates. Electrical deliverables are a focus, with efforts to expedite purchase orders. The project is expected to achieve first copper concentrate production by year end and commercial production in early 2025, leading to positive cash flow by mid-next year. During Q1 2024 (currency expressed in US dollars), $126.4M was invested in the project. Expenditures are expected to remain above $100M through Q3 of this year, before declining in Q4 as the project nears completion. As at quarter end, $830.6M of expenditures had been committed (95%), including $617.4M incurred (71%). There has been no change to full-year guidance of $350 to $400M on project capital expenditures.
• Silver Tiger Metals Inc., provided an update on the ongoing pre-feasibility study drilling program on the Stockwork gold deposit on its El Tigre project in Sonora. The company has completed 23,500m of a 25,000m drilling program focused on expanding the Mineral Resource, up-grading the classification, completing metallurgical testwork and geotechnical studies as it progresses from an exploration to a development project. Drilling highlights include holes ET-23-541 with 0.52 g/t Au and 17 g/t Ag (0.75 g/t AuEq or 56 g/t AgEq) over 79.5m, including 1.08 g/t Au and 8 g/t Ag (1.19 g/t AuEq and 89 g/t AgEq) over 26.5m, plus 0.14 g/t Au and 27 g/t Ag (0.5 g/t AuEq or 38 g/t AgEq) over 10.2m; hole ET-23-543 with 0.84 g/t Au and 28 g/t Ag (1.21 g/t AuEq or 91 g/t AgEq) over 40.2m, including 1.22 g/t Au and 38 g/t Ag (1.72 g/t AuEq or 129 g/t AgEq) over 23m; hole ET-23-548 with 0.62 g/t Au and 4 g/t Ag (0.67 g/t AuEq or 51 g/t AgEq) over 71m, including 1.32 g/t Au and 2 g/t Ag (1.36 g/t AuEq or 102 g/t AgEq) over 18.5m, plus 0.68 g/t Au and 1 g/t Ag (0.69 g/t AuEq or 52 g/t AgEq) over 11.3m; and hole ET-23-550 with 0.53 g/t Au and 10 g/t Ag (0.67 g/t AuEq or 50 g/t AgEq over 21m. plus 0.9 g/t Au and 8 g/t Ag (0.94 g/t AuEq or 70 g/t AgEq9 over 81.1m.
• Minera Alamos Inc., provided an update on its Cobre 4H Mexican subsidiary and copper assets, including the Los Verdes and Potreritos projects. The company aims to develop an independent copper entity in southern Sonora. The Los Verdes project’s PEA report highlights key economic figures and the potential impact of tungsten recovery. It has mineable resources of 7M tonnes of 0.67% Cu, 0.13% Mo, 0.07% W, and 5 g/t Ag, and reported a pre-tax net cash flow of $163M; a net present value (5%) of $113M; an internal rate of return of $34%; a mine life of 7 years; and a payback of 2.7 years. The acquisition of the Potreritos project area is discussed, with historic estimates and the possibility of incorporating its resources into the Los Verdes mining plans. Historic estimates for the Potreritos deposit include 1.4 M tonnes of indicated resources with grades of 0.47% Cu and 0.12% Mo; and 0.8 M tonnes of inferred resources with grades of 0.22% Cu and 0.033% Mo.
• Xali Gold Corp., provided an update on the company´s activities in Mexico. At El Oro tailings project in Mexico State, Xali announced excellent potential for 75% recovery of the gold and silver using a new process being introduced by Kappes, Cassiday and Associates (KCA). “This process would allow the gold and silver to be produced in the form of Dore, which enhances the value of the royalty stream agreed with Xali Gold. Overall recoveries will need further testing to establish a better estimate for overall recoveries of gold and silver, but KCA is very optimistic about the process”. Additionally, Grupo Minero WIYA is modifying the SDA Plant in Nayarit in order to produce a single bulk concentrate production, and has commenced shipping mineralized material from their mine to the SDA Plant. Approximately 550 tonnes of mineralized rock has been received at the SDA Plant in preparation for the restart of the mill, once 1500 tonnes has been delivered. At El Oro Gold hard rock project, Xali Gold is in discussions with a local mining group to extract and process mineralized backfill from the historic San Rafael mine in Mexico State. The agreement would involve sharing profits from recovering gold and silver materials, while also providing underground access for drilling to explore new mineralized zones. Drilling from underground is more cost-effective than drilling from the surface due to the presence of up to 300m of volcanic rocks above the gold and silver veins. The historic mine has a significant production history of 5 million ounces of gold equivalent (4M Oz Au and 44M Oz Ag), indicating the potential for further mineralization at depth.

 ON DEALS AND CORPORATE ISSUES

• Prismo Metals Inc., announced the appointment of its new President. This move will allow Co-Founder and former President & CEO, Dr. Craig Gibson to move into the role of Chief Exploration Officer (CXO) to focus more on the execution of field programs and exploration strategies (Palos Verdes project, Sinaloa).
• Americas Gold and Silver Corporation announced the appointment of its new Chief Operating Officer, effective May 6, 2024 (Cosala mine, Sinaloa).
• GR Silver Mining Ltd., has enhanced its financial position by signing a definitive agreement to sell Marlin Gold Mining Ltd. to WP Servicios Industriales S.A. de C.V. This transaction allows GR Silver to focus on resource growth and development of its core Plomosas Project in Sinaloa. The company will receive a 0.5% NSR Royalty on certain concessions as part of the deal. The CEO of GR Silver highlighted the positive impact on the company’s balance sheet and its ability to continue with its mining programs. WP’s Mining Division CEO expressed interest in potential cooperation with GR Silver in the region. The Plomosas Project holds significant silver resources, particularly in the San Marcial area, which is a key focus for exploration and potential development. Overall, the transaction is seen as a strategic move to strengthen GR Silver Mining’s financial position and operational focus.
• Royalties Inc., announced advances on two of its major investments in Mexico. The company continues its lawsuit against Capstone Gold SA de CV to recognize the 2% NSR on the production since 2019 from five Portree claims on the Cozamin Mine, on which a lien has been registered, as well as monetizing its silver asset, the Bilbao silver-zinc-lead property in Zacatecas, Mexico, where the company has a 1.5% NSR.
• Sonoran Desert Copper Corporation received a Management Cease Trade Order (MCTO) due to a delay in filing required financial documents for the year ended December 31, 2023. The company applied for the MCTO as an alternative to a general Cease Trade Order and is working with an auditor to rectify the default. The MCTO prohibits trading by specific company officials and individuals with access to undisclosed material information. If the required filings are not submitted by June 28, 2024, a general cease trade order may be imposed by the regulators. The company will provide bi-weekly default status reports until the issue is resolved.

ON SOCIAL RESPONSIBILITY

• No relevant news.

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On the picture above, quartz stockwork veining in an epithermal vein system in a project in Sinaloa, Mexico. Photo taken by Miguel A Heredia.