The Mining and Exploration News in Mexico: Highlights on the First Week of January, 2021

By Jorge Cirett

During the 1st week of the year (January 4th to January 10th, 2020), at least 27 press releases were announced by companies working in Mexico. To note, four companies posted exploration advances on their properties, and six more posted news on resources and development. Sierra Metals Corp’s Cusi and Bolivar mines are up for grabs. ON MEXICO ISSUES, a reduction of mineral production is expected for 2020 due to the effects of the Covid-19 pandemic. Camimex pointed on the lack of clarity on the distribution of the mining royalties. At least six companies plan to start mining operations in this year. ON EXPLORATION, in Sonora, Aztec Minerals updated its exploration status at Cervantes; Mojave Gold updated on exploration at its Sonora Gold project, where at least two structures tens of meters in width run for kilometers; Canuc Resources is using results from a magnetic survey for targeting. In Chihuahua, Mammoth Resources has received the permit for drilling at Tenoriba.  ON MINING, Endeavour Silver, Aura Minerals and Torex Gold presented Q4 2020 production results. Mexus Gold US continues to stack ore at its Santa Elena mine. Sierra Metals presented a PEA that doubles the processing capacity at its Cusi mine. ON FINANCING, Ridgestone Mining increased its private placement to $2.32 M. SilverCrest Metals entered into a credit agreement for US$76.5 M. Fabled Silver and Silver Wolf Exploration granted stock options. Silver Dollar Resources made a clarification requested by the OTC Market. ON RESOURCES AND DEVELOPMENT, GR Silver Mining reported good drilling results at the Plomosas mine, in the Plomosas project, Sinaloa. Sonoro Gold reported drilling results from Cerro Caliche, Sonora. Discovery Metals released drilling results from two vein trends at Cordero, Chihuahua. Prime Mining updated on exploration at Los Reyes, Sinaloa. Fabled Silver Gold informed on surface sampling at Santa María, Chihuahua. GoGold released results from drilling at El Favor, on its Los Ricos North project, Jalisco. ON DEALS AND CORPORATE ISSUES, Argonaut Gold and AP Mining have amended the agreement for the previously announced sale of the Ana Paula project to AP Mining. Minaurum Gold entered into an option agreement with Fortuna Silver on the Taviche property in Oaxaca, agreement by which Fortuna can gain up to 80% interest on the project. Sierra Metals is evaluating the sale of its assets, a merger or business combination. ON SOCIAL RESPONSIBILITY, Fresnillo, the Chihuahua Mining Cluster and Grupo Mexico informed on actions that benefit society.

ON MEXICO ISSUES

  • Camimex (Camara minera de México) sees the mining production to decrease in 2020 due to the pandemic. The decrease is expected to reach 10% for gold, 6 to 6.3% for silver and lead, 3% for copper and 25% for iron.
  • Camimex pointed on the lack of clarity on the distribution of the mining royalties. According to the previous rules the resources funded infrastructure on communities across mining regions. After de federal government changed the rules, it is not clear now how these resources are distributed. Mining companies paid US$196 M (3,990 million pesos) in royalties in 2019.
  • Companies aspiring to start new mines in 2021 include: Mag Silver (Juanicipio, Zacatecas), Orla Mining (Camino Rojo, Zacatecas), Minera Alamos (Santa, Sonora), Golden Minerals (Rodeo, Durango), VanGold Mining (Pinguico and El Cubo, Guanajuato), Sonora Gold (Cerro Caliche, Sonora) and Candelaria Mining (Pinos, Zacatecas).

ON EXPLORATION

  • Aztec Minerals Corp. informed that during 2020 formed a 65/35 joint venture with Kootenay Silver on the Cervantes project, Sonora. Also during the year an additional IP-resistivity survey was performed to define new targets; geological mapping, geochemical sampling and geophysical surveying have identified 11 targets in total, of which 7 are in preparation for drilling. Aztec intends to extend detailed geologic, structural, and alteration mapping and sampling at the Purisima West, Estrella, Jacobo, Brazil, and other targets at Cervantes, and plan and permit a phase 1 reverse circulation drilling program on the California and Purisima targets.
  • Mojave Gold Corp. updated on work done during December of 2020 at its Sonora Gold project in Sonora. A 261 sample stream sediment survey was carried out in the 6,000 hectares property, and detailed geological mapping and rock chip sampling was carried out on the Caracahui and Sonora Cooper areas, including underground mapping on the latter. The Sonora Cooper West/Las Llantas structure has been observed to be over 3 km in length, reaching widths of over 70 m. “In total, mineralized structures in the western part of the project area have been observed to extend more than 8.5 kilometers in cumulative length…. The Sonora Cooper mineralized area contains large structures often reaching over 70m in width, that were mapped in detail for over 500m along strike. Additionally, detailed underground mapping was completed over 605m length in the Sonora Cooper adit and over a 260m length of the Guadalupe adit. A total of 160 rock chip samples were collected from the underground workings”.
  • Mammoth Resources Corp. announced SEMARNAT (Mexican environmental agency) has approved the drill permit application on its Tenoriba property in Chihuahua. Mammoth is planning to start a drilling campaign before the end of the first quarter.
  • Canuc Resources Corp. received results from a drone supported magnetic survey at its San Javier project in Sonora. Three large magnetic high features (1,000 by 600 m, 800 by 600 m, 600 by 600m) were identified. “Detailed processing of the data suggests that there are stronger magnetic features within the larger target areas which may represent areas of higher-grade mineralization. Canuc is now carrying out detailed ground magnetic surveys on these targets and is scheduled to begin drilling in the next few weeks”.

ON MINING

  • Mexus Gold US. released an update of mining operations at its Santa Elena mine in Sonora (not to mistake for First Majestic’s Santa Elena mine, also in Sonora). The company is stacking material from a shear zone grading 0.9 gpt to 1.2 gpt Au.
  • Sierra Metals Inc. filed a NI 43-101 independent technical report for a doubling of output at its Cusi mine in Chihuahua. The preliminary economic assessment (PEA) highlights include an after tax Net Present Value (NPV) of US$81 M at an 8% discount rate, at a long term silver price of US$20/Oz. The project envisages increasing the production from 1,200 tonnes per day (tpd) to 2,400 tpd @ 127.2 gpt Ag, 0.12 gpt Au, 0.48% Zn, 0.34% Pb, with a 13 year mine life and recoverable 33.4 M Oz Ag.
  • Endeavour Silver Corp. reported the highest quarterly production in the last two years from its mines in Mexico. Total production in the quarter was 237.4 K tonnes mined at a rate of 2,580 tpd @ 169 gpt Ag, 1.90 gpt Au, recovering 86.8% Ag, 87% Au, to produce 1.12 M Oz Ag, 12,586 Oz Au.
  • Torex Gold Resources Inc. reported Q4 production for 2020. At its Limon-Guajes mine in Guerrero, 12,560 tpd were processed, with 1,300 tpd mined from underground and 18,360 tpd mined from open pit with a waste to ore strip ratio of 6.2, to produce 130,640 Oz Au in the quarter. In the year, 11,370 tpd were processed to produce 430,480 Oz Au.
  • Aura Minerals Inc. released preliminary production reports for the fourth quarter of 2020. In the period the Aranzazu mine in Zacatecas produced 19,073 Oz AuEq, which added up to the 65,497 Oz AuEq for the full year. During December 89.1 K tonnes were processed, and the company intends to increase processing to 100 K tonnes per month during the second half of 2021.

ON FINANCING

  • SilverCrest Metals Inc. entered into a credit agreement with an affiliate of RK Mine Finance to provide a secured project financing facility for a total of US$120 M for funding the construction at Las Chispas, Sonora. Concurrently SilverCrest has entered into a fixed price engineering, procurement and construction contract with Ausenco Engineering Canada Inc. with a lump sum turnkey price of US$76.5 M that is to include construction of a 1,250 tonne per day process plant at Las Chispas.
  • Fabled Silver Gold Corp. granted 200,000 stock options to a consultant of the company (Santa María, Chihuahua).
  • Silver Dollar Resources Inc. was requested by the OTC Markets Group Inc. to issue a statement about promotional activity concerning its common stock. OTC Markets questioned about “two promotional newsletter emails published by CrushTheStreet.com (“CTS”) and Wealth Research Group (“WRG”) discussing the emerging bull market for commodities, particularly silver, and citing the Company in both publications… The Company has been advised by OTC Markets that OTC Markets takes the position that aspects of the statements were overly promotional. The Company wishes to caution readers that these statements are speculative in nature” (La Joya, Durango).  
  • Silver Wolf Exploration Ltd. granted incentive stock options for the purchase of 1 M shares to directors, officers, consultants, and employees of the Company (Ana María and Laberinto, Durango).
  • Ridgestone Mining Inc. increased the previously announced private placement from $1.9 M to $2.32 M, for additional gross proceeds of $420 K (Rebeico, Sonora).

ON RESOURCES AND DEVELOPMENT

  • GR Silver Mining Ltd. reported good underground drilling results from the Plomosas mine area at its Plomosas project in Sinaloa. “The mineralization is represented by thick intercepts of Au-Ag-Pb-Zn-Cu mineralization hosted in a series of hydrothermal breccias”.  The highlighted results comprise 83 m @ 2.52 gpt Au, 33 gpt Ag, 0.9% Pb, 2.9% Zn, 0.3% Cu (420 gpt AgEq), including 4.0 m @ 9.35 gpt Au, 38 gpt Ag, 0.4% Pb, 10.5% Zn, 0.3% Cu (1,319 gpt AgEq) and 11.0 m @ 9.41 gpt Au, 135 gpt Ag, 5.7% Pb, 9.8% Zn, 0.5% Cu (1,596 gpt AgEq).  
  • Sonoro Gold Corp. reported favourable results from eight reverse circulation drill holes at its Cerro Caliche project in Sonora. At the Buena Suerte target, highlighted intercepts comprise 3.0 m @ 1.48 gpt Au; 7.6 m @ 1.32 gpt Au, 12.2 m @ 0.86 gpt Au; 12.2 m @ 0.69 gpt Au; 27.44 m @ 1.17 gpt Au (including 3.0 m @ 4.70 gpt Au); 12.2 m @ 0.50 gpt Au. Highlighted intercepts from the Japoneses target include 22.9 m @ 0.57 gpt Au; 10.7 m @ 0.45 gpt Au; 13.7 m @ 0.60 gpt Au; 10.7 m @ 0.40 gpt Au, 12.2 m @ 0.36 gpt Au; 4.6 m @ 0.41 gpt Au; 27.44 m @ 1.17 gpt Au; 12.2 m @ 0.50 gpt Au.
  • Discovery Metals Corp. released results from 10 diamond drill holes targeting the Parcionera and Josefina vein trends at its Cordero project in Chihuahua. Highlighted intercepts comprise 4.4 m @ 246 gpt Ag, 0.39 gpt Au, 6.5% Pb, 0.4% Zn (524 gpt AgEq); 0.5 m @ 665 gpt Ag, 0.58 gpt Au, 13.8% Pb, 13.7% Zn (1,765 gpt Ag) on the Parcionera vein trend and 3.3 m @ 196 gpt Ag, 0.17 gpt Au, 5.6% Pb, 4.9% Zn (612 gpt AgEq); 1.6 m @ 20 gpt Ag, 0.11 gpt Au, 0.3% Pb, 1.8% Zn at the Josefina vein trend.
  • Prime Mining Corp. provided a year-end update on its Los Reyes project in Sinaloa. “The ongoing work includes field mapping, trench sampling, rock alteration analysis and interpretation and re-logging of historic diamond drill core…. Re-logging of several existing diamond drill core holes also identified that adularia, a crystalline mineral, containing high-grade gold and silver locally with visible gold, is associated with nearby altered rock types. The adularia appears to be vertically zoned”. The project is a district scale low sulfidation epithermal mineralizing system on which more than US$20 million have been spent over 25 years.
  • Fabled Silver Gold Corp. completed the sampling program to evaluate the IP geophysical anomalies on the Santa María property in Chihuahua. The sampling returned silver anomalous results over two geophysical anomalies. Eleven first priority anomalies have been delineated, generally in an east-west direction.
  • GoGold Resources Inc. released drilling results from El Favor deposit at its Los Ricos North property in Jalisco. Highlighted core length results comprise 30.2 m @ 0.18 gpt Au, 63 gpt Ag (1.03 gpt AuEq), including 8.6 m @ 0.28 gpt Au, 146 gpt Ag (2.23 gpt AuEq); 5.6 m @ 0.55 gpt Au, 287 gpt Ag (4.37 gpt Au), including 1.7 m @ 1.7 gpt Au, 834 gpt Ag (12.83 gpt AuEq); 70.5 m @ 0.15 gpt Au, 50 gpt Ag (0.82 gpt AuEq), including 9.7 m @ 0.55 gpt Au, 199 gpt Ag (3.20 gpt AuEq); 15.3 m @ 0.30 gpt Au, 151 gpt Ag (2.31 gpt AuEq); 12.8 m @ 0.30 gpt Au, 126 gpt Ag (1.99 gpt AuEq), including 3.3 m @ 0.89 gpt Au, 302 gpt Ag (4.91 gpt AuEq); 41.1 m @ 0.24 gpt Au, 76 gpt Ag (1.24 gpt AuEq); 21.0 m @ 0.11 gpt Au, 74 gpt Ag (1.10 gpt AuEq); 27.0 m @ 0.97 gpt Au, 113 gpt Ag (2.47 gpt AuEq); 11.0 m @ 0.28 gpt Au, 160 gpt Ag (2.40 gpt AuEq); 52.1 m @ 0.69 gpt Au, 254 gpt Ag (4.08 gpt AuEq); 11.6 m @ 0.43 gpt Au, 148 gpt Ag; 32.5 m @ 0.32 gpt Au, 63 gpt Ag (1.15 gpt AuEq).

ON DEALS AND CORPORATE ISSUES

  • Argonaut Gold Inc. and AP Mining “have amended the agreement for the previously announced sale of the Ana Paula project to AP Mining (see press release dated September 11, 2020) to allow more time to meet the regulatory and government approvals required for closing. In connection with the amendment, AP Mining has agreed to pay an additional US$1.0 million at 15 months from the closing date and to reimburse all of Argonaut’s costs incurred associated with the Ana Paula project incurred between January 1, 2021 and the closing of the transaction. Closing continues to be subject to financing and receipt of all necessary approvals, which is expected in the first quarter of 2021” (Ana Paula, Guerrero).
  • Minaurum Gold Inc. entered into an option agreement with Fortuna Silver Mines Inc. pursuant to which Fortuna can earn up to an 80% interest in Minaurum’s Taviche silver project in Oaxaca. Fortuna can earn an initial 60% by making cash payments totalling $450 K and incurring in US$4 M in work expenditures over three years. Fortuna can earn an additional 20% interest “by funding Minaurum ‘s acquisition by way of option exercise of the remaining 20% interest”. The cash installments to make comprise US$75 K upon signing, US$100 K on the first anniversary, US$125 K on the second anniversary and US$150 K on the third anniversary. Drilling by previous operators of the project returned up to 34.12 m @ 262 gpt Ag and 8.35 m @ 2.05 gpt Au.
  • Sierra Metals Inc. announced that “its Board of Directors, supported by its management team and with the full support of Arias Resource Capital Fund L.P., Arias Resource Capital Fund II L.P. (the Company’s two largest shareholders) and Arias Resource Capital Fund II (Mexico) L.P., has commenced a process to explore and evaluate potential strategic alternatives focused on maximizing shareholder value. These alternatives could include, among other things, the sale of part or all of the Company, a sale of some of the assets of the Company, a merger or other business combination with another party, or other strategic transactions” (Cusi and Bolivar mines, Chihuahua).

ON SOCIAL RESPONSIBILITY

  • Minera Fresnillo donated computing equipment in Caborca, Sonora.
  • The Chihuahua Mining Cluster president, Pablo Mendez Alvídrez stated that the industry will aid with the acquisition of the Covid-19 vaccine, once it is on sale by pharmacies, for its distribution on mining communities.
  • The Grupo Mexico Foundation delivered a significant amount of protective equipment for health care personnel

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

On the image below: Quartz veining from a project in San Luis Potosí. Picture by Jorge Cirett.

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

 

Quartz veins hosted in volcanic rocks

By Miguel A Heredia

During the thirty one week of the year (July 27th to August 2nd, 2020), at least 50 press releases were announced by companies working in Mexico, with thirteen announcing financial rounds, eight communicating production and financial results, seven disclosing deals and corporate issues, six commenting on Mexican issues, six discussing social issues, five informing on exploration results, and five reporting on resources and developments. ON MEXICO ISSUES, Xavier Garcia de Quevedo, VP of Grupo Mexico, stated that the investment in the Mexican mining industry has decreased 36% between 2018 and 2019 and 68% in the last seven years. The research firm Americas Market Intelligence (AMI) stated that sustainability initiatives will boost financing for the mining sector. The dispute between the Tax Administration Service (SAT) and the Canadian mining company First Majestic is rapidly escalating to other levels. According to the Institute of Statistics and Geography (INEGI), Mexico is the 9th world gold producer. Gold price exceeded USD $ 1,981.27 per Oz last Tuesday 28, 2020, reaching an all-time high. ON EXPLORATION, In Sonora, Canuc recommenced exploration at its San Javier project, and Silver Spruce announced that its Phase 1 ground exploration program on the El Mezquite Au Project will be activated during the first week of August 2020.  In Sinaloa, Vizsla added a fourth drill rig at its Panuco project. In Durango, Mithril commenced a 5,000m drilling program at its Copalquin project.  ON MINING, Capstone, Coeur, Consolidated Zinc, Fresnillo, Newmont, and Starcore reported production and financial results from their Mexican operations. Sierra Metals announced restart of production at its Cusi mine in Chihuahua.  ON FINANCING, Advance Gold closed its previously announced private placement for gross proceeds of $720K (Tabasquena project, in Zacatecas).  Aztec Minerals closed the final tranche of its private placement for gross proceeds of CAD $955K (Cervantes project in Sonora). Golden Tag announced a non-brokered private placement financing led by Eric Sprott for aggregate proceeds of $5.6M (San Diego property in Durango). Impact Silver pronounced a brokered private placement financing for CAD $6M (Zacualpan Mining District in Mexico State). Kootenay announced a private placement financing for $5M (Columba project in Chihuahua). Silver Tiger closed a non-brokered private placement for gross proceeds of $11M (El Tigre project in Sonora). Southern Silver reported a brokered offering of subscription receipts for aggregate gross proceeds of CAD $10M, and announced an additional CAD $4M equity raise (Cerro Las Minitas project in Durango). Stroud completed a non-brokered private placement financing for gross proceeds of $3M (Santo Domingo property in Jalisco).  Sonoro Metals announced that it increased its non-brokered private placement financing for up to $5M with the potential to add up to $3M of additional proceeds under the overallotment option. Gold Resource declared July monthly dividend to their shareholders (Arista mine in Oaxaca). Mag Silver signed an at the market offering sales agreement of common shares for gross proceed of up to USD $50M (Juanicipio project in Zacatecas). Candente applied to TSX for approval to extend the exercise period of 5M outstanding share purchase warrants issued pursuant to the private placement completed on August 12, 2016. (El Oro property in Mexico State). Monarca Minerals announced that it is proposing to settle an aggregate of approximately $380.6K owing to certain officers and directors and services providers through the issuance of an aggregate of approximately 7,612,000 common shares at an issue price of CAD $0.05 (Tejamen project in Durango).   ON RESOURCES AND DEVELOPMENT, Alamos Gold reported results of a positive internal economic study and announced construction decision on its fully permitted La Yaqui Grande project located in the Mulatos mining district. GoGold announced initial mineral resource estimate at its Los Ricos project in Jalisco, and updated the mineral reserve at the Parral Tailings operation, and the mineral resource estimate at its Esmeralda Tailings project located near Parral, Chihuahua. Consolidated Zinc advised that the environmental authority of Mexico has granted their approval for refurbishment of its Plomosas plant and construction and operation of the tailings storage facility. Ridgestone entered into a toll milling agreement to process bulk samples from historic dumps of the Alaska vein at its Rebeico project in Sonora.  ON DEALS AND CORPORATE ISSUES, Brigadier announced the appointment of its new special adviser (Picachos project in Sinaloa). Santacruz signed an option agreement with Grupo Peñoles to acquire the Zimapan property and related assets located in Zimapan, Hidalgo for a total consideration of USD $20M. Minera Alamos hired new VP project development and appointed new COO (Santana project in Sonora). Consolidated Zinc presented results from its annual general meeting of shareholders, and advised that a new constitution was approved and adopted by shareholders (Plomosas mine in Chihuahua). Candente launched the “CEO Verified” Discussion Forum on AGORACOM (El Oro property in Mexico State). Telson provided an update on filing annual 2019 audited and Q1, 2020 financial statements (Tahuehueto project in Durango).  ON SOCIAL RESPONSIBILITY, The Municipal Water and Sanitation Board of Chihuahua (JMAS) is extracting water from the Esmeralda and Arbolito mines to feed a dam in Parral Chihuahua. Minera Peñasquito supplies water to 5 thousand people of the communities of Cedros, Mesas, Charcos, Nuevo Peñasco and Palmas. Minera Saucito, a subsidiary of Fresnillo plc, received international certification for its commitment to the health and safety of its collaborators. Minera Penmont (Fresnillo plc), implemented a health model for the safety of its workers in the face of the COVID-19 pandemic (La Herradura mine in Sonora). Compañía Minera Cuzcatlán (Fortuna Silver) dissociated itself from the alleged environmental incident and reiterated its commitment to the communities in which it operates (San Jose mine, Oaxaca).

ON MEXICO ISSUES

  • Xavier Garcia de Quevedo, VP of Grupo Mexico, stated that the investment in the Mexican mining industry has decreased 36% between 2018 and 2019 and 68% in the last seven years, leading the country to fall in the international ranking of investment destination from position 5 to 29.
  • The research firm Americas Market Intelligence (AMI), concluded that sustainability initiatives will boost financing for the mining sector. This would represent an opportunity to transform the industry and create new business models in a more economic capital cycle.
  • The dispute between the Tax Administration Service (SAT) and the Canadian mining company First Majestic is rapidly escalating to other levels. The Attorney General’s Office, Carlos Romero Aranda, warned the taxpayer that it failed to accumulate the real income derived from the sale of silver to its related party Silver Trading Barbados Limited. First Majestic draws disputes with the SAT since the last administration because it is questioned what it paid as a result of the purchase of Primero Mining, owner of the San Dimas silver mine, in Durango. The mining company filed a lawsuit against Mexico in May under the Free Trade Agreement, prompting Andrés Manuel López Obrador to ask the Canadian government to enter into conciliation. But what is unheard of is that while the President asks his counterpart Justin Trudeau to sensitize First Majestic to pay about $ 180 million, there is already a tax lawsuit.
  • According to the National Institute of Statistics and Geography (INEGI), Mexico is the 9th world gold producer. In 2019 the country produced 2.4M Oz Au with a value of approximately USD $2.87B.
  • Gold price exceeded USD $ 1,981.27 per Oz last Tuesday 28, 2020, reaching an all-time high. Investors bet on the precious metal, considered as a safe value amid uncertainty by the tensions between the United States and China and the recovery of the COVID-19 pandemic. This move is common among investors to protect themselves from risk when markets fall.

ON EXPLORATION

  • Canuc Resources Corporation, recommenced exploration at its San Javier project in Sonora. The company announced that it has initiated a geological mapping and systematic sampling program along the 3Km structural corridor of the San Javier Ag-Au project. Focus of the program is to locate and evaluate large scale breccia zones, particularly those that occur at the intersection of known veins and crosscutting fault structures.
  • Silver Spruce Resources Inc., announced that its Phase 1 ground exploration program on the El Mezquite Au Project will be activated during the first week of August 2020. Silver Spruce plans to conduct geological mapping on the entire property and additional rock sampling. It also will use the Terraspec hyperspectral tool for definition of alteration intensity of silicate, carbonate and hydrous oxide species. The mapping also will document any structural data which may be correlated with the known geophysical trends, and applied to the interpretation of the property-wide mapping. In addition, the company also will initiate scheduling for the requisite environmental permitting for drilling access and pads.
  • Vizsla Resources Corp., added a fourth drill rig at its Panuco project in Sinaloa, to test new targets on the Napoleon, Cordon del Oro and Animas vein corridors.
  • Mithril Resources Limited commenced a fully funded 5,000m drilling program at its Copalquin project which is expected to run until the end of 2020. This program has already started at the high-grade Au-Ag La Soledad-Refugio-Cometa targets, and will move to other targets such as Los Pinos, Los Reyes, and San Manuel-La Constancia.

ON MINING

  • Capstone Mining Corp., reported production results from its Cozamin mine in Zacatecas for the period Q2, 2020. The company produced 8.3M Lb Cu at a cash cost of $0.98 per Lb.
  • Coeur Mining Inc., released Q2, 2020 production and financial results from its Palmarejo mine in Chihuahua. The company processed 269,641 tonnes of 2.18 g/t Au and 139 g/t Ag, with metallurgical recoveries of 86% and 72.2% respectively, to produce 15.2K Oz Au and 867K Oz Ag. Costs applicable to sales were USD $686 and $8.13 per Oz Au and Ag respectively.
  • Consolidated Zinc Ltd., mined 2,575 tonnes of 16.6% Zn, 9.5% Pb, and 66 g/t Ag and processed 2,201 tons of 16.6% Zn, 9.2% Pb, and 64 g/t Ag to produce 515.9K Lb Zn, 185.2K Lb Pb, and 30 Oz Ag, at a cash cost of $0.84 per Lb Zn. The company sold in this quarter 541 tonnes of Zn concentrate and 201 tonnes of Pb concentrate.
  • Fresnillo plc., announced production results from their Mexican operations for the period Hi, 2020. At Fresnillo mine, Zacatecas, the company processed 1,194,905 tonnes of 0.72 g/t Au, 196 g/t Ag, 1.14% Pb, and 2.12% Zn to produce 19.7K Oz Au, 6.8M Oz Ag, 25.3M Lb Pb, and 39.1M Lb Zn. At Saucito mine in Zacatecas, it processed 1,385,385 tonnes of 1.21 g/t Au, 210 g/t Ag, 1.02% Pb, and 1.84% Zn to produce 41.6K Oz Au, 8.14M Oz, 26.4M Lb Pb, and 39.12M Lb Zn. At Pyrites Plant in Zacatecas, the company processed 80,502 tonnes of 2.11 g/t Au and 252 g/t Ag to produce 1,795 Oz Au and 505K Oz Ag. At Cienega in Durango, it processed 657,893 tonnes of 1.65 g/t Au, 163 g/t Ag, 0.75% Pb, and 1.24% Zn to produce 32.4K Oz Au, 2.97M Oz Ag, 7.14M Lb Pb, and 10.8M Lb Zn. At San Julian Veins in Chihuahua-Durango border, the company processed 621,973 tonnes of 1.58 g/t Au and 115g/t Ag to produce 30.2K Oz Au and 2.1M Oz Ag while at San Julian Disseminated Ore Body, it processed 1,101,489 tonnes of 0.08 g/t Au, 137 g/t Ag, 0.39% Pb, and 1.1% Zn to produce 1,293 Oz Au, 4.15M Oz Ag, 7.5M Lb Pb, and 19.8M Lb Zn. At Herradura mine in Sonora. 8,130,282 tonnes of 0.82 g/t Au and 4 g/t Ag were processed to produce 205.7K Oz Au and 824K Oz Ag. At Noche Buena mine in Sonora, the company processed 3,330,054 tonnes of 0.54 g/t Au and 0.4 g/t Ag to produce 48.7K Oz Au and 19K Oz Ag. Consolidated results of the company were 383.3K Oz Au, 26.8M Oz Ag (including 1.3M Oz silverstream), 66.3M Lb Pb, and 108.9M Lb Zn. Total revenues of USD $ 1,054.2M, adjusted revenues of USD $1,125.1M, cost of sales of USD $733M, exploration expenses of USD $50.7M, and EBIDTA of USD $469.9M, and a profit for the period of USD $56.5M.
  • Newmont Corporation reported that 510K Oz Au, 28M Oz Ag, 190M Lb Pb, and 360M Lb Zn (880 Oz AuEq) were produced at its Peñasquito mine in Zacatecas during Q2, 2020, at cash cost and AISC of $565 and $770 per Oz Au produced respectively.
  • Starcore International Mines Ltd., released year end 2020 results from its San Martin mine in Queretaro. The company processed 229,800 tonnes of 1.82 g/t Au and 30.5 g/t Ag with metallurgical grades of 87.7% and 54.4% respectively, to produce 11.8K Oz Au and 121.8K Oz Ag (13-1K Oz AuEq) at cash and AISC of USD $66 and USD $1,149 per tonne milled respectively.
  • Sierra Metals Inc., announced restart of production at its Cusi mine in Chihuahua since it had remained in care and maintenance since April 1, 2020, due to the government-mandated shutdown to contain the advancement of COVID-19.

ON FINANCING

  • Advance Gold Corp closed its previously announced private placement for gross proceeds of $720K. Net proceed will be used for drilling its Tabasquena project in Zacatecas, as well as for general corporate purposes.
  • Aztec Minerals Corp., closed the final tranche of its private placement equity financing for gross proceeds of CAD $955K. Part of the net proceeds will be used to conduct exploration work on its Cervantes project in Sonora, and for general working capital purposes.
  • Golden Tag Resources Ltd., announced a non-brokered private placement financing led by Eric Sprott for aggregate proceeds of $5.6M. The offering is subject to an over-allotment option allowing Golden Tag to increase it to $7M, if fully exercised. Net proceeds will be used to fund advancement of its San Diego project in Durango, and for working capital and general corporate purposes.
  • Impact Silver Corp., pronounced a brokered private placement financing for CAD $6M (Zacualpan Mining District, Mexico State). Net proceeds will be used for exploration, development and general corporate purposes.
  • Kootenay Silver Inc., announced a private placement financing for gross proceeds of $5M. Net proceeds will be used for working capital requirements and other general corporate purposes (Columba and Copalito projects in Chihuahua and Sinaloa states respectively).
  • Silver Tiger Metals Inc., closed a non-brokered private placement for gross proceeds of $11M, including $4M from Eric Sprott. Net proceeds will be used to continue exploration work on its El Tigre project in Sonora, and for general working capital purposes.
  • Southern Silver Exploration Corp., reported a brokered offering of subscription receipts for aggregate gross proceeds of CAD $10M, and announced an additional CAD $4M equity raise. Net proceeds will be used to acquire an additional 60% indirect working interest (for a 100% indirect ownership) in the company’s flagship Cerro Las Minitas in Durango, and for general working capital purposes.
  • Stroud Resources Ltd., completed a non-brokered private placement financing for gross proceeds of $3M. Net proceeds will be used to advance the company´s exploration properties located in Mexico and for general working capital purposes (Santo Domingo project in Jalisco).
  • Sonoro Metals Corp., announced that it increased its non-brokered private placement financing for up to $5M with the potential to add up to $3M of additional proceeds under the overallotment option. Net proceeds will be used principally to fund company´s previously announced exploration and development plans at its Cerro Caliche project in Sonora and project property maintenance payments, and secondarily for corporate and general administrative expenses.
  • Gold Resource Corporation, declared July monthly dividend of one third of a cent per common share to their shareholders (Arista mine in Oaxaca).
  • Mag Silver Corp., signed an at the market offering sales agreement of common shares for gross proceed of up to USD $50M (Juanicipio project in Zacatecas). Net proceeds will be primarily used to fund the completion of construction at its Juanicipio project in Zacatecas, with any remainder to fund further exploration at Juanicipio and other projects, and for working capital and general corporate purposes.
  • Candente Gold Corp., applied to TSX for approval to extend the exercise period of 5M outstanding share purchase warrants issued pursuant to the private placement completed on August 2016. The amended expiry date was August 12th, 2020 and if the extension is approved, the new expiration date will be August 12th, 2021. (El Oro property in Mexico State).

ON RESOURCES AND DEVELOPMENT

  • Alamos Gold Inc., reported results of the positive internal economic study completed on its fully permitted La Yaqui Grande project located in the Mulatos mining district and announced that it will begin the development of the project. The Mineral Reserves as of December 2019 of La Yaqui Grande deposit are 19.2M tonnes of 1.17 g/t Au and 16 g/t Ag, containing 724K Oz Au and 9.8M Oz Ag. Additionally, Measured and Indicated Resources are 1.3M tonnes of 1.01 g/t Au and 8 g/t Ag, containing 43K Oz Au and 340K Oz Ag. Highlights of the economic study include an average Au production of 123K Oz Au per year; AISC of $578 per Oz Au; NPV of $165M at a 5% discount rate and an after tax IRR of 41% using a base case Au cost of $1,450 per Oz or  a NPV of  $260M at a 5% discount rate and an after tax IRR of 58% using a base case Au cost of $1,750 per Oz; mine life of five years; and an initial capital of $137M to be spent over a two year period starting in H2, 2020. From the total investment, between USD $15-$20M will be spent during 2020 and the rest during 2021 and the first semester of 2022. Part of the resources will be used to build a heap leach pad, waste dump, water treatment plant, as well as the installation of a crushing circuit.
  • GoGold Resources Inc., announced initial mineral resource estimate at its Los Ricos project in Jalisco, and updated the mineral reserve at the Parral Tailings operation, and the mineral resource estimate at its Esmeralda Tailings project located near Parral, Chihuahua. At Los Ricos South, measured & indicated resource are 10M tonnes of 0.91 g/t Au and 119 g/t Ag (2.27 g/t AuEq or 199 g/t AgEq) for a total of 293K Oz Au and 38.05 M Oz Ag (728K Oz AuEq or 63.7M Oz AgEq), and inferred resources of 3.3M tonnes of 0.88 g/t Au and 112 g/t Ag (2.17 g/t AuEq or 190 g/t AgEq) for a total of 93K Oz Au and 11.78 M Oz Ag (227K Oz AuEq or 19.9M Oz AgEq). Los Ricos South mineral resource is amenable to open pit and bulk underground mining methods, and will form the base of a PEA expected to be completed by the end of 2020. At Parral Tailings, proven + probable reserves are 15.4M tonnes of 0.34 g/t Au and 33 g/t Ag (0.72 g/t AuEq or 64 g/t AgEq) for a total of 171K Oz Au and 16.6M Oz Ag (358K Oz AuEq or 31.6M Oz AgEq). At La Esmeralda Tailings, measured and indicated resources are 5.72M tonnes of 0.26 g/t Au and 49 g/t Ag (72 g/t AgEq) for a total of 48.4K Oz Au and 9.1M Oz Ag (13.3M Oz AgEq).
  • Consolidated Zinc Limited advised that the environmental authority of Mexico has granted their approval for refurbishment of its Plomosas plant in Chihuahua, and construction and operation of the tailings storage facility (TSF). The company is finalizing the costing for the plant refit and TSF build and expect to advise the findings of the study this quarter.
  • Ridgestone Mining Inc., entered into a toll milling agreement to process bulk samples from historic dumps of the Alaska vein at its Rebeico project in Sonora. Highlights include a fixed-price toll mining agreement with nearby Real Viejo flotation mill for up to 300 tonnes per day, and bulk samples planned to process historical surface dump material grading up to 16.85 g/t Au and 2.70% Cu. In addition, Ridgestone has also received bids from mining contractors to rehabilitate historical underground workings along the Alaska vein to facilitate underground and bulk sampling of zones where drill-hole intervals assayed 36.1g/t Au and 1.22% Cu over 1.5m, and 8.31gT Au and 2.41% Cu over 3.25m in 2018.

ON DEALS AND CORPORATE ISSUES

  • Brigadier Gold Ltd., announced the appointment of its new special adviser (Picachos project in Sinaloa).
  • Santacruz Silver Mining Ltd., signed an option agreement with Grupo Peñoles to acquire the Zimapan property and related assets located in Zimapan, Hidalgo for a total consideration of USD $20M. Assets to be acquired pursuant to the Transaction include: The Zimapan mill facility which is a 75,000 dry metric tonnes (DMT) per month facility with zinc, lead and copper circuits; surface and underground infrastructure including electrical and other necessary infrastructure to carry on day to day operations; and 34 mining concessions covering an area of 5,139 hectares. To date, 14 mineral zones have been identified that are characterized as polymetallic replacement mineralization of Pliocene age. Within the mineral zones, Ag, Pb, Zn, and Cu minerals have preferentially replaced the carbonate host rocks and pre-existing skarn bodies to produce disseminated, semi-massive sulphide and massive sulphide bodies that occur in proximity to monzonitic intrusions and quartz-feldspar porphyry dikes.
  • Minera Alamos Inc., hired new VP project development and appointed new COO (Santana project in Sonora).
  • Consolidated Zinc Ltd., presented results from its annual general meeting of shareholders and advised that a new constitution was approved and adopted by shareholders (Plomosas mine in Chihuahua).
  • Candente Gold Corp., launched the “CEO Verified” Discussion Forum on AGORACOM. The forum will serve as the company’s primary social media platform to interact with both shareholders and the broader investment community in a fully moderated environment  (El Oro property in Mexico State).
  • Monarca Minerals Inc., announced that it is proposing to settle an aggregate of approximately $380.6K owing to certain officers and directors and services providers through the issuance of an aggregate of approximately 7,612,000 common shares at an issue price of CAD $0.05. The amount to be settled includes approximately $202K out of $350K in accrued directors’ fees and management and consulting fees owing to the company’s directors and officers, as the case maybe. (Tejamen project in Durango).
  • Telson Mining Corporation, provided an update on filing annual 2019 audited and Q1, 2020 financial statements. Telson expects to file the required annual and Q1, 2020 financials an MD & A by the July 30, 2020 deadline. (Tahuehueto project in Durango).

ON SOCIAL RESPONSIBILITY

  • The Municipal Water and Sanitation Board of Chihuahua (JMAS) is extracting water from the Esmeralda and Arbolito mines to feed a dam in Parral Chihuahua. The dam is currently at 13% of its capacity and in order not to cause ecological damage, it cannot be left dry. Water extracted from the mines also guarantees supply to a sector of the city.
  • Minera Peñasquito supplies water to 5 thousand people of the communities of Cedros, Mesas, Charcos, Nuevo Peñasco and Palmas. Regarding make water safe to drink, the company has four treatment plants, one inside the Peñasquito mine and three more outside, in the Cedros, Mesas and Charcos communities, from which potable water is distributed to the aforementioned localities.
  • Minera Saucito, a subsidiary of Fresnillo plc, received international certification for its commitment to the health and safety of its collaborators. The ISO 45001 Certificate: “Occupational health and safety management systems at work” was obtained from the international company BSI Group, based in the United Kingdom, whose services are: evaluating, certifying and training operating processes of different industries such as: mining, pharmaceutical, aerospace, entertainment, among others. The model stands out for its objective of reducing risks and injuries to collaborators derived from the processes associated with the exploration and exploitation of minerals. Minera Saucito is the first Fresnillo plc Unit to achieve this certification.
  • Minera Penmont (Fresnillo plc), implemented a health model for the safety of its workers in the face of the COVID-19 pandemic. The company has taken a series of multidisciplinary medical and health activities aimed at promoting a culture of disease prevention and control, and the elimination of risk factors at work. The effectiveness and implementation of this type of model is recognized by the World Health Organization and allows comprehensive care within the mine that is committed to the well-being and safety of the workforce.
  • Compañía Minera Cuzcatlán (Fortuna Silver), dissociated itself from the alleged environmental incident and reiterated its commitment to the communities in which it operates, following up on the community’s concern about physical changes in the water of two recently built grazing ponds in the Ocotillo area, in the municipality of Magdalena Ocotlán. Later on, the Federal Attorney for Environmental Protection (PROFEPA) announced that it carried out an inspection of the built grazing ponds in the Ocotillo area and demarcated mining company from any responsibility for the damages in the water pools in Ocotlán (San Jose mine in Oaxaca).

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 veins in a low sulphidation epithermal system in a prospect in Oaxaca, Mexico.  Photo by Miguel A Heredia.

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

 

Argillic alteration

By Miguel A Heredia

During the twenty nine week of the year (July 13th to July 19th, 2020), at least 47 press releases were announced by companies working in Mexico, with ten communicating production and financial results, nine commenting on Mexican issues, eight announcing financial rounds, seven informing on exploration results, five disclosing deals and corporate issues, four reporting on resources and developments, and four discussing on social issues. ON MEXICO ISSUES, Claudia Pavlovich and Hector Astudillo, governors of Sonora and Guerrero respectively, asked the Ministry of Economy to reconsider returning to the support that was granted to the municipalities with the Mining Fund. Jose Ignacio Peralta Sanchez, governor of Colima state requested the reactivation of The Mining Fund. Karen Flores, Director of the Mexican Mining Chamber (CAMIMEX), stated that 16% of the workforce in the Mexican mining industry is occupied by women. The Secretary of Economic Development of Michoacan, Jesus Melgoza Velazquez, announced that the regional committee of the Mining Fund for the Development of Mining Areas was reactivated after approximately two years.  Fernando Alanis, president of the Mexican Mining Chamber (CAMIMEX) declared that the mining sector in the country is at risk of contracting if new concessions are not granted.  Torex Gold plans additional investment of USD $ 500M in Mexico but asked the government for certainty. The Ministry of Labor and Social Security (STPS) reported that it is in preparation for the next stage of the rescue of the miners who were trapped in the Pasta de Conchos mine in Coahuila 14 years ago. The Zacatecas Mining Cluster (Clusmin) and its members started the construction of the Compatible Mining Center in Zacatecas. Minera Esperanza Silver (Alamos Gold Inc.) reaffirmed its commitment with Mexico. ON EXPLORATION, In Sonora, Colibri concluded its current phase of field work at its Evelyn project and planed the next phase trenching program, Ridgestone reported drill results from the three first holes collared at its Rebeico project, Minaurum commenced phase II drilling at its Alamos Silver project, and Silver Viper reported results from four holes drilled at its La Virginia project. In Chihuahua, Kootenay released drill results from its Columba project, and Consolidated Zinc provided an exploration update on its Potrero and Don Lucas prospects.  In Sinaloa, Vizsla expanded the exploration program at its Panuco project and added a third drill rig.  ON MINING, Aura, Avino, Consolidated Zinc, First Majestic, Fortuna, GoGold, Gold Resource, McEwen, Santacruz and Sierra Metals reported Q2, 2020 production results from their Mexican operations. ON FINANCING, Aztec Minerals closed the first tranche of its private placement for gross proceeds of CAD $2.12M (Cervantes project, Sonora). Silver Tiger announced a plan to conduct a non-brokered private placement for gross proceeds of up to $11M (El Tigre project, Sonora). Tarachi Gold announced it intends to complete a non-brokered private placement for net proceed of up to CAD $5M (Tarachi project, Sonora).  Xtierra closed its previously announced private placement for gross proceeds of $1M (Bilbao project, Zacatecas). Mammoth announced lifting of management cease trade order and issuance of shares for debt and incentive options (Tenoriba project, Chihuahua). Mexus announced that the company satisfied a $57K note payable by way of conversion (Santa Elena mine, Sonora). Telson announced that further to its application for a management cease trade order, which was granted by the British Columbia Securities Commission, it has been required to provide bi-weekly status reports (Tahuehueto project, Durango). One World Lithium announced that it will continue providing bi-weekly updates following a management cease trader order granted for the British Columbia Securities Commission (Salar del Diablo project, Baja California Norte). ON RESOURCES AND DEVELOPMENT, Endeavour announced a final PFS on its Terronera mine in Jalisco. GR Silver resumed the surface drilling at its Plomosas project in Sinaloa.  Prime Mining provided an update regarding the initial phase of exploration planned on its Los Reyes project in Sinaloa. Minera Alamos provided mid-year construction update at its Santana project in Sonora.  ON DEALS AND CORPORATE ISSUES, Carlyle entered in an option agreement with Riverside to purchase 100% interest in the Cecilia project in Sonora.  Golden Minerals signed a letter of intent with Fabled Copper to sell its Santa Maria project in Chihuahua. Minera Alamos announced the appointment of a new member to its board of directors (Santana project, Sonora). Oroco announced the appointment of a director to join to its board of directors (Santo Tomas project, Sinaloa). ON SOCIAL RESPONSIBILITY, Fresnillo plc continues to implement sanitary measures in its work centers and support the communities surrounding the operations. Grupo Peñoles supported the donation of bed-chairs for Coahuila hospitals. MSX (New Gold Inc.) donated pantries to vulnerable population in the communities of Cerro de San Pedro, San Luis Potosi, as well as personal protection equipment to hospitals. Camino Rojo S.A. de C.V. (Orla Mining Ltd.) continued helping communities and government agencies where it operates to mitigate the risk of the COVID-19 pandemic.

 ON MEXICO ISSUES

  • Claudia Pavlovich and Hector Astudillo, governors of Sonora and Guerrero respectively, asked the Ministry of Economy to reconsider returning to the support that was granted to the municipalities with the Mining Fund. The governor of Guerrero said that the Mining Fund can be used to reactivate the economy in the most affected regions by the unemployment of the industry due to the COVID-19 pandemic, as well as to attend to the population affected by the virus, as well as for medical care and medicines. The governor of Sonora said that this support marked a before and after in the municipalities where the resources were applied, and stated that the Mining Fund should be reconsidered to promote the development of the municipalities. In addition, governors of Coahuila, Durango and Chihuahua highlighted the importance of mining activity in their states.
  • José Ignacio Peralta Sanchez, governor of Colima state asked the Undersecretary of Mining, Francisco Jose Quiroga Fernandez, to resume Mining Funds pending from some years ago, since due to the current economic conditions is when this resource is most required. The governor stressed that mining is an engine for the entity’s economy, since it has important productive chains, which makes it a strategic sector.
  • Karen Flores, Director of the Mexican Mining Chamber (CAMIMEX), stated that 16% of the workforce in the Mexican mining industry is occupied by women. She argued that although it seems a minority figure, its increase has been exponential. She also commented that Mexican mining adheres to the agreements of the 2030 agenda of the United Nations (UN) in two of its main objectives, such as the reduction of inequality and gender equity.
  • The Secretary of Economic Development of Michoacan, Jesus Melgoza Velazquez, announced that the regional committee of the Mining Fund for the Development of Mining Areas was reactivated after approximately two years. The Mining Fund will allow physical infrastructure works to be carried out in municipalities with mining activity such as Tlalpujahua, Tzitzio, Tuzantla, Huetamo, Villa Madero, La Huacana, Arteaga, Coalcoman, Aquila and Lazaro Cardenas. Since the creation of the regional committee of the mining fund in 2014, MXP $171M have been earmarked for the realization of 61 projects such as paving works for streets and roads, construction of sanitary landfills, infrastructure for the drinking water service, sewerage and water treatment plants, placement of LED street lights, construction of classrooms, roofs and civic patios in schools.
  • Fernando Alanis, president of the Mexican Mining Chamber (CAMIMEX), declared that the mining sector in the country is at risk of contracting if new concessions are not granted. Alanis recalled the importance of mining activity, in order to continue the 370,000 direct jobs and 2-3 millions of indirect jobs generated by this sector, in addition to the fact that for each hectare concessioned under active exploitation, it has a spill of MXP $22,829M. He also said that between 2016 and 2019 the sector paid MXP $174,500M for taxes.
  • Jody Kuzenko, President & CEO of Torex Gold Resources Inc., declared that it plans additional investments of USD $ 500M in Mexico in the construction and commissioning of its Media Luna project in Guerrero but asked the government for certainty in key areas such as in the rule of law and in economic policies to keep its investment projects.
  • The Ministry of Labor and Social Security (STPS), reported that it is in preparation for the next stage of the rescue of the remains of the 65 miners who were trapped in the Pasta de Conchos mine in Coahuila 14 years ago.
  • The Zacatecas Mining Cluster (Clusmin) and its members, started the construction of the Compatible Mining Center in Zacatecas, which is expected to take a year. The Compatible Mining Center aims to promote the development of science, the use of the latest technology and promote innovation for the development of specific purpose applications in the mining environment in the areas of occupational health, physical and psychological safety of workers, and protection of the environment in mining operations in the state of Zacatecas.
  • Minera Esperanza Silver (Alamos Gold Inc.), reaffirmed its commitment with Mexico and highlighted the enormous opportunity for Morelos to be part of the mining sector and the national extractive industry, which is equivalent to 8.3% of industrial GDP. The spokesperson for the Esperanza Silver mining company in Mexico, responsible for the Esperanza project, located in the municipality of Temixco stated that Temixco is shaping up to be one of the mining municipalities in Mexico, where well-being and possibilities for economic and social development are imminent and we must prepare for it.

ON EXPLORATION

  • Colibri Resource Corporation, concluded the current phase of field work and released mapping and sampling results from its Evelyn project in Sonora. A total of 40 grab samples were collected, 9 of which returned grades greater than 0.1 g/t Au, including 4 running more than 1 g/t Au, with a peak value of 8.4 g/t Au at the Cerro Rojo target area. The high-grade samples all consist of quartz vein, veinlets, and quartz breccia with oxidized pyrite and goethite. Colibri plans the next phase on trenching at its Evelyn project.
  • Ridgestone Mining Inc., reported drill results from the three first holes collared at its Rebeico project in Sonora. 1,674m were completed on the New Year Zone to investigate the subsurface extent of significant gold and copper mineralization previously sampled on surface. Significant drill intersections were encountered in hole 20REB013D with 2.13 g/t Au and 1.79% Cu over a width of 16.25m, including 5.25 g/t Au and 1.46% Cu over a width of 4.35m. Holes 20REB014D and 20REB015D intersected 0.25% Cu and 0.19%Cu over a width of 16.2m and 10.9m respectively.
  • Minaurum Gold Inc., commenced phase II drilling program at its Alamos Silver project in Sonora with a minimum of 20,000m. This phase will involve systematically stepping out from discoveries made during Phase I drilling beginning with two drill rigs. “One drill will offset the Europa-Guadalupe discovery hole (AL17-007) which returned 8.25 m grading 1,760 g/t Ag. The other drill will test targets at Promontorio, both along the vein trend and beneath the Promontorio mine where recently acquired historical data revealed holes that returned up to 12.2 m grading 710 g/t Ag”.
  • Silver Viper Minerals Corp., reported results from four new drill holes at La Virginia, two from the El Rubi discovery area and two from the exploration prospect, Macho Libre. Significant drill intersections were encountered in hole LV20-234 collared at El Rubi with 2.05 g/t Au and 11 g/t Ag over a true width (TW) of 4.26m, including 3.59 g/t Au and 16 g(/t Ag over a TW of 1.18m; hole LV20-231M drilled at Macho Libre with 0.63 g/t Au and 24 g/t Ag over a TW of 11.76m, including 1.07 g/t Au and 54 g/t Ag over a TW of 3.60m; and hole LV20-233M drilled at Macho Libre with 1.41 g/t Au and 26 g/t Ag over a TW of 0.90m. Drilling at the El Rubi Discovery Zone continues to expand the system and the rig is being mobilized to a second exploration target named Rubi East.
  • Kootenay Silver Inc., released results from five drill holes collared at its Columba project in Chihuahua. These holes are step outs along strike and to depth from high-grade intercepts previously reported in the Phase-II drill campaign. Significant drill intersections were encountered in hole CDH-20-052 with 199 g/t Ag, 0.08% Pb, and 0.27% Zn over 7.53m, including 279 g/t Ag, 0.11% Pb, and 0.38% Zn over 4.08m, and including 601 g/t Ag, 0.03% Pb, and 0.12% Zn over 1.23m within the F Vein; hole CDH-20-053 with 116 g/t Ag, 0.11% Pb, and 0.24% Zn over 34m, including 175 g/t Ag, 0.17% Pb, 0.37% Zn over 11m, including 496 g/t Ag, 0.55% Pb, and 0.91% Zn over 3m, including 620 g/t Ag, 0.35% Pb, 0.9% Zn over 2m, including 753 g/t Ag, 0.38% Pb, and 1% Zn over 0.95m in F Vein and Hanging Wall structure; and hole CDH-20-054 with 158 g/t Ag, 0.4% Pb, and 0.35% Zn over 5m, including 319 g/t Ag, 0.18% Pb, and 0.5% Zn over 1.8m in F Vein.
  • Consolidated Zinc Limited, provided an exploration update on its Potrero and Don Lucas prospects in Chihuahua and has reserved $600K for exploration field work this year. The company has continued its Au exploration with desktop studies which has established targets and defined a scope of work for immediate commencement of field mapping, sampling and drilling in the current field season.
  • Vizsla Resources Corp., expanded the exploration program at its Panuco project from 14,500m of drilling to 31,100m and added a third rig, which has already commenced to drill. In addition, a fourth drill rig is expected to arrive at the beginning of August. “Third and fourth drill rigs will test exploration targets including the strike extensions of the Napoleon vein corridor, the Tajitos vein, the San Carlos mine at Animas and additional targets along the Cordon del Oro vein corridor”. Drilling is continuing at the high-grade Napoleon discovery with drill hole NP-20-14 in progress. Drilling is testing to the south and down dip of the discovery hole NP-20-02 before moving back north to test vein extension near hole NP-20-07. The updated July-December exploration program is estimated to cost approximately $6.9 M.

 ON MINING

  • Aura Minerals Inc., presented Q2, 2020 production results from its Aranzazu mine in Zacatecas. It produced 5K Oz Au, 91.6K Oz Ag, and 6.2M Lb Cu (14,748 Oz AuEq).
  • Avino Silver & Gold Mines Ltd., announced that it processed 40,190 tonnes of 0.40 g/t Au, 49 g/t Ag and 0.58% Cu at metallurgical recoveries of 79%, 90% and 90% respectively, to produce 404 Oz Au, 50.6K Oz Ag, and 459.8K Lb Cu (158.3K Oz Ag) during the period Q2,2020 from its Avino mine in Durango.
  • Consolidated Zinc Limited, reported that Zn-Pb grades exceeding 25% and 8% respectively are being encountered at the newly opened up Las Espadas underground area while the semi-oxidized ore continues to be mined and delivered at rates of above 15o tonnes per day. At its Aldama plant, it has achieved record availability to July 10 2020 of 94.5% while the recoveries are improving above performance thanks to the effort of the technical team.
  • First Majestic Silver Corp., presented production results for the period Q2, 2020 from their Mexican operations. The table below shows mine by mine production figures:

At the end of Q2, 14 exploration drill rigs were active across the company’s projects consisting of 11 rigs at San Dimas, two rigs at Santa Elena and one rig at La Encantada. The company anticipates adding seven additional rigs in Q3 with a primary focus on the regional potential around Santa Elena.

  • Fortuna Silver Mines Inc., released Q2, 2020 production results from its San Jose mine in Oaxaca. The company milled 160,151 tonnes of 1.42 g/t Au and 220 g/t Ag at metallurgical recoveries of 90.91% and 90.84% respectively to produce 6,654 Oz Au and 1.03M Oz Ag, at cash cost of USD $66/ton.
  • GoGold Resources Inc., presented production results from its Parral Tailings project in Chihuahua for the period Q2, 2020. The company produced 1,914 Oz Au, 270K Oz Ag, and 233K Lb Cu (504.4K Oz AgEq).
  • Gold Resource Corporation, announced preliminary production results from its Oaxaca Mining Unit in Oaxaca. It produced 2,441 Oz Au, 185.3K Oz Ag, 551K Lb Cu, 2.56M Lb Pb, and 6.75M Lb Zn during the period Q2, 2020.
  • McEwen Mining Inc, produced in Q2, 2020 from its El Gallo mine in Sinaloa over 1,900 Oz AuEq from residual leaching of the heap leach pad.
  • Santacruz Silver Mining Ltd., released Q2, 2020 production and financial results from its Mexican operations. At Zimapan, Hidalgo the company milled 139,903 tonnes to produce 829,514 Oz AgEq from which 626,984 were sold, at cash cost per tonne and for Oz AgEq of $48.15 and $16.53 respectively, and AISC of $17.57 per Oz AgEq. At Veta Grande, Zacatecas, it milled 11,095 tonnes to produce 64,870 Oz AgEq from which 47,854 were sold, at cash cost per tonne and for Oz AgEq of $148.36 and $39.54 respectively, and AISC of $46.34 per Oz AgEq. At Rosario, San Luis Potosi, the company milled 17,497 tonnes to produce 73,251 Oz AgEq from which 61,111 were sold, at cash cost per tonne and for Oz AgEq of $62.12 and $23.47 respectively, and AISC of $29.01 per Oz AgEq.
  • Sierra Metals Inc., announced production results from its Bolivar mine in Chihuahua for the period Q2, 2020. Cusi mine remained in care and maintenance throughout Q2, 2020. At Bolivar mine, the company processed 308,951 tonnes of 0.30 g/t Au, 26 g/t Ag, and 0.93% Cu at metallurgical recoveries of 63.79%, 82.80%, and 87.09% respectively, to produce 1,912 Oz Au, 214K Oz Ag, and 5.54M Lb Cu. “At Cusi mine, Chihuahua, development is currently on-going in a zone that will bypass the previously announced area of subsidence and provide access to higher-grade economic ore to provide feed for the mill. Production is expected to recommence after the mine development work is completed and once a process can be implemented at the mine to mitigate risk to employees at the site through a testing and quarantine methodology similar to the company’s other operations”.

 

ON FINANCING

  • Aztec Minerals Corp., closed the first tranche of its private placement for gross proceeds of CAD $2.12M. Part of the gross proceeds will be used to conduct exploration work at its Cervantes project in Sonora, and for general working capital purposes.
  • Silver Tiger Metals Inc., announced a plan to conduct a non-brokered private placement for gross proceeds of up to $11M. Net proceeds will be primarily used for further exploration at its El Tigre project in Sonora.
  • Tarachi Gold Corp., announced it intends to complete a non-brokered private placement for net proceeds of up to CAD $5M. Gross proceeds will be used for exploration of its Tarachi project in Sonora, corporate development, and general working capital purposes.
  • Xtierra Inc., closed its previously announced private placement for gross proceeds of $1M. Nett proceeds will be used to expand and diversify its royalty portfolio into Canada, USA and other mining friendly jurisdictions (Bilbao project, Zacatecas).
  • Mammoth Resources Corp., announced lifting of management cease trade order and issuance of shares for debt and incentive options. The company has yet to file its Q1, 2020 financial statement and Management Discussion & Analysis which were due on June 30, 2020. It expects to file these statements shortly (Tenoriba project, Chihuahua). Mammoth also announced the issuance of 2,503,000 common shares to settle a total of $87,605 in related party and third party debts.
  • Mexus Gold US, announced that the company satisfied a $57K note payable by way of conversion. In addition, Mexus’ audit obligation has been met with the audit expected to be completed in the next 7 days. The audit process was delayed due to the company moving from an exploration company to a production company (Santa Elena mine, Sonora).
  • Telson Mining Corporation, announced that further to its application for a management cease trade order, which was granted by the British Columbia Securities Commission on June 16, 2020, it has been required to provide bi-weekly status reports in accordance with the alternative information guidelines in National Policy 12-203 management cease trade orders, until such time as the company has completed and filed its audited annual financial statements and management’s discussion and analysis in respect of the financial year ended December 31, 2019 (Tahuehueto project, Durango).
  • One World Lithium Inc., announced that it will continue providing bi-weekly updates following a management cease trader order granted for the British Columbia Securities Commission. The company anticipated that the annual filings and the quarterly filings will be filed on or before July 30, 2020 (Salar del Diablo project, Baja California Norte).

ON RESOURCES AND DEVELOPMENT

  • Endeavour Silver Corp., announced a final PFS on its Terronera mine in Jalisco. Base case highlights of the PFS include a NPV 5% of $137M, and IRR of 30%, annual production average of 3M Oz Ag and 32.8K Oz Au (5.9M OZ AgEq) over an initial  10 year mine life, a cash cost and AISC of $0.004 and $2.10 per Oz Ag net of the Au credit respectively, Initial and sustaining capital expenditures of $99M and $60M respectively, a payback period of 2.7 years, and a Pre-Tax and After-Tax undiscounted free cash flow of $315M and $217M respectively.
  • GR Silver Mining Ltd., restarted the 4,500m surface drilling at its Plomosas project in Sinaloa with three drill rigs which is expected to continue through 2020. This drill program is focused on shallow drilling (up to 150m below surface) to expand the known mineralized zones along strike at Plomosas mine and San Juan-La Colorada areas, and follow-up drilling on several new high grade Au-Ag low sulphidation epithermal veins occurrences at the Yecora and El Saltito. Additionally, GR Silver will commence recon work on 11 priority targets identified to contain potential for new discoveries.
  • Prime Mining Corp., provided an update regarding the initial phase of exploration planned on its Los Reyes project in Sinaloa. Focus of the phase 1 program is to upgrade and expand the current mineral resource, test identified zones of high-grade, and advance the understanding of the geology and structural controls of the known deposits of the property. The program is expected to cost approximately $6M and has a targeted completion date of late Q1, 2021.
  • Minera Alamos Inc., provided mid-year construction update at its Santana project in Sonora. The company announced that the heap leach pad area has been cleared of all vegetation and is undergoing contouring ahead of clay placement and the pad liner installation, and that the bypass road construction at either end of the heap leach pad area is underway; reported that the explosive storage & detonator bunkers are awaiting final inspection from the Mexican authorities ahead of the explosive permit issuance; and that the fabrication of the plant carbon columns is complete with work underway for the remaining plant steel structure.

ON DEALS AND CORPORATE ISSUES

  • Carlyle Commodities Corp., entered into an option agreement with Riverside to earn 100% interest in the Cecilia project in Sonora. In order to purchase 100% interest in the Cecilia property, Carlyle has to make aggregate cash payments of $200K over 3 years to Riverside, issue 1.5M common shares, issue 3M non-transferable special warrants, and incur an aggregate of $2.5M in exploration expenditures. Riverside will retain a 2.5% NSR.
  • Golden Minerals Company, signed a letter of intent with Fabled Copper Corp., to sell its Santa Maria project in Chihuahua. The Agreement provides a 10-calendar day period during which Fabled will conduct its due diligence. If Fabled executes the option agreement to acquire 100% interest in Santa Maria property, it has to make a cash payment of USD $0.5M and issue 1M Fabled common shares, USD $1.5M in cash 12 months after closing of the transaction, USD $2M in cash 24 months after closing of the transaction, and upon Fabled exercises the option, it will grant to Golden a 1% NSR.
  • Minera Alamos Inc., announced the appointment of a new member to its board of directors (Santana project, Sonora).
  • Oroco Resource Corp., announced the appointment of a new member to join to its board of directors (Santo Tomas project, Sinaloa).

ON SOCIAL RESPONSIBILITY

  • Fresnillo plc, continues to implement sanitary measures in its work centers and support the communities surrounding its operations in Fresnillo, Saucito, Juanicipio in Fresnillo, Zacatecas, Orisyvo in Uruachic, Chihuahua, Herradura, Noche Buena and Centauro in Caborca, Sonora, San Julian and Cienega in Durango, and in Torreon, Coahuila. . The company donated a last-generation respirator and medical protection equipment such as N-95 respirators, latex gloves, disinfectant gel, disposable gowns, disposable face masks, face masks, and disposable surgical face masks to the General Hospitals of the Mexican Institute of Social Security (IMSS), as well as thousand food pantries. With these actions, Fresnillo plc, belonging to the Mexican corporate Grupo BAL, joins the commitment to health care, with the purpose of guaranteeing the well-being of families and the population that lives in the areas surrounding its operations.
  • Grupo Peñoles, through contributions made by employees to the service of Met-Mex Peñoles, supported the donation of bed-chairs to Coahuila hospital to support those who deserve decent living conditions.
  • MSX (New Gold Inc.), donated pantries to vulnerable population in the communities of Cerro de San Pedro, San Luis Potosi, as well as personal protection equipment to hospitals designated as medical centers to care for patients with COVID-19.
  • Camino Rojo S.A. de C.V. (Orla Mining Ltd.), continued helping communities and government agencies providing support in sanitary filters installed in the border of Zacatecas with the different states; donated pantries during the months of April, May and June containing products from the basic basket which are intended to contribute to the economy of families in the communities of influence, which are San Tiburcio, Berrendo and San Francisco de los Quijano.

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, argillic alteration related to a porphyry copper system in a prospect in Michoacan, Mexico.  Photo by Miguel A Heredia.

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

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.

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

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 January, 2020.

 

Boiling texture in an epithermal quartz vein

By Miguel A Heredia

During the third week of the year (January 13th to January 19th, 2020), at least 27 press releases were announced by companies working in Mexico, with eight communicating production results, seven reporting on resources and developments, five informing on exploration results, two disclosing deals and corporate issues, two discussing issues on social responsibility, two commenting on Mexican issues, and one announcing financial rounds.  ON MEXICO ISSUES, The Mexican mining industry, the thirteenth largest in the world, is laying the groundwork for generating more investment in this important development engine. Mining  activity has increased in Tamaulipas, according to the General Directorate of Mines.  ON EXPLORATION, In Sonora, Silver Viper released drilling results from its La Virginia project and Aztec Minerals provided a 2020 outlook for its Cervantes project. In Chihuahua, Radius announced results from the third phase of drilling from its Amalia project. In Sinaloa, Vizsla Resources discovered a new high grade vein at its Panuco project. In Zacatecas, Advance Gold commenced the third phase geophysical survey at its Tabasquena project. ON MINING, Alamos Gold commenced operation at its Cerro Pelon mine in Sonora. Torex announced that it expects to produce between 420K to 480K Oz Au in 2020 (El Limón Guajes, Guerrero). Great Panther, GoGold, McEwen, Fortuna Silver, Avino, and Coeur reported Q4 and full year 2019 production and financial results from their Mexican operations.   ON FINANCING, Minera Alamos closed a private placement with Osisko for gross proceeds of $6M. (Santana project, Sonora). ON RESOURCES AND DEVELOPMENT, Starcore staked two new claims near its San Martin Mine in Querétaro. Prime Mining retained a consulting company to complete an estimate of the Au and Ag resources for its Los Reyes mine in Sinaloa. Capstone presented expansion and infill drilling results from its Cozamine mine in Zacatecas. Torex announced an updated resource estimate for its Media Luna project in Guerrero.  SilverCrest announced it plans to release in-fill and expansion drill results from six areas in Q1, 2020. Minera Alamos commenced construction of its Santana mine in Sonora. Southern Silver reported that metallurgical test work confirmed that a marketable Cu, Pb, Zn concentrate can be produce at its Cerro Las Minitas project in Durango. ON DEALS AND CORPORATE ISSUES, Sonoro Metals granted stock options to certain directors, officers, and consultants (Cerro Caliche project, Sonora). Radius signed a binding option agreement to acquire from a private family an 800 Ha property called Palmillas, which is adjacent to its Amalia project in Chihuahua. ON SOCIAL RESPONSIBILITY, The Mining Fund contributed in the road construction in the municipality of Tepehuanes, Durango. The Peñoles Community Center will give new human development workshop.

ON MEXICO ISSUES

  • The Mexican mining industry, the thirteenth largest in the world, is laying the groundwork for generating more investment in this important development engine. The Ministry of Economy works to have a financing model like the Canadian one. One of the government’s bets is that Mexico, with private investment, be a producer of rechargeable Li batteries for electric cars. José Francisco Quiroga Fernández, the Under Secretariat of Mining said in an interview, that USD $ 100B will be the value of annual Li sales in 2029, according to Bloomberg. 243M tonnes of Li are estimated to be in the Sonora deposits. At the moment that market is worth just over USD $22B; However, according to Bloomberg NEF estimates in 2023 it exceeds USD $40B, in 2025 it will be USD $60B and in 2030, USD $116B, that is to say almost 420% more than the global sales of 2019.
  • Mining activity has increased in Tamaulipas, according to the General Directorate of Mines. The state has 124 mining concessions in 19 of their municipalities. Profits produced by the mineral extraction of Pb, Zn, Cu, Au, Ag, serpentine, and stone aggregates exceed MXP $2,000M per year.

ON EXPLORATION

  • Silver Viper Minerals Corp., announced drilling results for the first three holes of the phase 2 from its Virginia project in Sonora. Significant results were encountered in hole LV19-209 with 3.22 g/t Au and 1,054 g/t Ag (1,280 g/t AgEq) over 1.8m, and other interval with 2.50 g/t Au and 27 g/t Ag (202 g/t AgEq) over 7m, including 5.27 g/t Au and 41 g/t Ag (410 g/t AgEq) over 3m; hole LV19-210 with 1.47 g/t Au and 216 g/t Ag (319 g/t AgEq) over 6m, including 6.32 g/t Au and 1,071 g/t Ag (1,513 g/t AgEq)over 1m; and hole LV19-211 with 13.39 g/t Au and 446 g/t Ag (1,384 g/t AgEq) over 4.5m, including 58.3 g/t Au and 1,923 g/t Ag (6,004 g(t AgEq) over 1m, and other interval with 1.37 g/t Au and 40 g/t Ag (136 g/t AgEq) over 9m. Phase II will consists of 5,000m in approximately 20 holes.
  • Aztec Minerals Corp., provided a 2020 outlook for its Cervantes project in Sonora. It plans to finalize the JV agreement with Kootenay in January 2020, and secure a senior partner to conduct an aggressive exploration program to advance both near surface oxide Au mineralization and deeper porphyry Au-Cu targets.
  • Radius Gold Inc., announced results from the recently completed third phase of drilling from its Amalia project in Chihuahua. Significant results were encountered in hole AM-DD19-18 with 12.5 g/t Au and 2,320 g/t Ag over 1.3m, and 1.4 g/t Au over 13.7m; and hole AM-DD19-19 with 0.5 g/t Au and 22 g/t Ag over 7.4m. Holes AM-DD19-20 and 21 only encountered anomalous Au-Ag values at the San Pedro fault. Radius reported that it has signed a binding agreement to acquire the 800 Ha Palmillas property from a private family which hosts high-grade epithermal Au-Ag mineralization and is adjacent to Amalia project.
  • Vizsla Resources Corp., discovered a new high grade vein at its Panuco property in Sinaloa. This vein consists of crystalline quartz with disseminated argentite and pyrite hosted in a strongly weathered and demagnetized diorite. Sampling on this 500m long vein returned 3.07g/t Au and 312 g/t Ag (557 g/t AgEq over 3.4m; 1.34 g/t Au and 263 g/t Ag (370 g/t AgEq) over 0.7m; and 0.5 g/t Au and 107 g/t Ag (147 g/t AgEq) over 1.1m. Vizsla plans to drill this recently discovered vein in late January/early February as one of the twenty targets that will be drilled throughout 2020.
  • Advance Gold Corp., commenced the third phase geophysical survey at its Tabasquena project in Zacatecas to delineate a new chargeability anomaly identified on the most southerly of the reconnaissance lines from the second phase survey, and to do a long NW-SE line cross cutting all of the previous E-W survey lines to obtain a much deeper penetration. This new survey will consist of nine E-W lines of 1,000m long, with line spacing of 120m, and one line NW-SE of 4,000m long.

ON MINING

  • Alamos Gold Inc., commenced operation at its satellite mine Cerro Pelon, located 3km from its Mulatos mining unit in Sonora. The new open pit mine, whose current life is three years, has a capacity of 4,500 tons per day, has an independent crushing train and the material is deposited in the Mulatos mine yards, taking advantage of the existing mining infrastructure and avoiding more capital costs.
  • Torex Gold Resources Inc., announced that it expects to produce between 420K to 480K Oz Au in 2020, at a total cost per Oz Au sold of USD $640-$670, and AISC of USD $900-$960 per Oz Au sold.
  • Great Panther Mining Limited, reported Q4 and full year 2019 production and financial results from their Mexican operations. At Topia mine, Durango, the company processed in Q4, 2019, 18,854 tonnes with grades of 0.81 g/t Au and 424 g/t Ag for a total of 267 Oz Au, 242.8K Oz Ag, 1.09M Lb Pb, and 1.45M Lb Zn (449.6K Oz AgEq), that brings a total of 79,257 tonnes processed in the full year 2019, with grades of 0.94 g/t Au and 392 g/t Ag for a total of 1,344 Oz Au, 938.6K Oz Ag, 4.39M Lb Pb, and 5.77M Lb Zn (1.78M Oz AgEq). At Guanajuato mine complex, the company processed in Q4, 2019 a total of 48,710 tonnes with grades of 2 g/t Au and 136 g/t Ag for a total of 2,640 Oz Au and 180.5K Oz Ag (394.6K Oz AgEq), that brings a total of 187,610 tonnes processed in the full year 2019 with grades of 2.26 g/t Au and 116 g/t Ag for a total of 11,588 Oz Au and 590.8K Oz Ag (1.5M Oz AgEq).
  • GoGold Resources Inc., announced Q4, 2019 production results from its Parral Tailings project in Chihuahua. The company produced 2,407 Oz Au and 379K Oz Ag (585K Oz AgEq).
  • McEwen Mining Inc., reported that its El Gallo mine in Sinaloa produced in 2019 a total of 16,333Oz AuEq from residual leaching of the heap leach pad.
  • Fortuna Silver Mines Inc., announced Q4 and full year 2019 production results from its San Jose mine in Oaxaca. It processed 273,066 tonnes of 1.5 g/t Au and 249 g/t Ag to produce a total of 12K Oz Au and 2M Oz Ag. In the full year 2019, the company processed 1,068,722 tonnes of 1.57 g/t Au and 252 g/t Ag to produce 48.9K Oz Au and 7.9M Oz Ag.
  • Avino Silver & Gold Mines Ltd., reported Q4, and full year 2019 production results from its Avino mine in Durango, including Avino, San Gonzalo and stockpiles. During the Q4 period, it processed 188,436 tonnes of 0.47 g/t Au, 51 g/t Ag, and 0.43% Cu to produce 2,032 Oz Au, 220.8K Oz Ag, and 1.39M Lb Cu (608.6K Oz AgEq). In the full year 2019, the company processed 789,660 tonnes of 0.41 g/t Au, 54 g/t Ag, and 0.4%Cu to produce 6,912 Oz Au, 958.8 Oz Ag, and 4.97M Lb Cu (2.4M Oz AgEq).
  • Coeur Mining Inc., announced Q4 and full year 2019 production and financial results from its Palmarejo mine in Chihuahua. In the period Q4, it milled 486,779 tonnes of 2.25 g/t Au and 159 g/ Ag for a total of 28.7K Oz Au and 2M Oz Ag at an average realized price per Oz Au and Ag of $1,238 and $17.28 respectively. For the full year 2019, the company milled 1,755,957 tonnes of 2.49 g/t Au and 151 g/t Ag to produce a total of 111.9K Oz Au and 6.76M Oz Ag at an average realized price per Oz Au and Ag of $1,220 and $16.23 respectively.

ON FINANCING

  • Minera Alamos Inc., closed a private placement with Osisko Gold Royalties Ltd., for gross proceeds of $6M. With this, Osisko has increased its shareholding of the company´s common share from 12.3% to 18.7%. Net proceeds will be used for building its Santana mine in Sonora.

ON RESOURCES AND DEVELOPMENT

  •  Starcore International Mines Ltd., staked two new claims near its San Martin Mine in Queretaro with upside potential for exploration and development. These two new claims are located to the west of the current mineral rights of the mine and cover approximately 710 Ha. The company will release an exploration plan for the first part of 2020.
  • Prime Mining Corp., retained a consulting company to complete a 43-101 compliant technical report that includes a n estimate of the Au and Ag resources for its Los Reyes mine in Sinaloa. Prime geologists have prepared a database of 493 historic drill holes to establish a new 43-101 compliant in-pit resource. The company expects to expands the size of the indicated resource presented by the former owner of 380.1K Oz Au at a grade of 1.73 g/t Au and inferred resources of 155.2K Oz Au at a grade of 1.49 g/t Au, and Ag resources of 6.3M indicated Oz Ag at a grade of 29 g/t Ag, and 3.6M inferred Oz Ag at a grade of 35 g/t Ag.
  • Capstone Mining Corp., presented drilling results from 6 expansion holes and 21 infill holes collared at its Cozamin mine in Zacatecas. This brings the total drilled to date to 150 holes of a 200 hole program, aiming to double the current reserve base. Significant drill intercepts were encountered in hole CG-19-S445 (step out) with 5.31% Cu, 0.15% Zn, and 79 g(t Ag over a true width of 6.3m, including 9.8% Cu, 0.26% Zn, and 139 g/t Ag over 2.8m; hole CG-19-S443 (step out) with 4.95% Cu, 0.15% Zn, and 104 g/t Ag; hole CG-19-S436 with 6.13% Cu, 0.24% Zn, and 98 g/t Ag over a true width of 1.7m; hole CG-19-S441(step out) with 3.35% Cu, 0.34% Zn, and 62 g/t Ag over a true width of 5.4m; hole CG-10-S455 (infill) with 7.65% Cu, 0.35%Zn, and 141 g/t Ag over a true width of 5.4m; hole CG-19-S437 (infill) with 1.94% Cu, 0.15% Zn and 45 g/t Ag over a true width of 19.3m, including 5.9% Cu, 0.33% Zn, and 134 g/t Ag over a true width of 2.80m; hole CG-19-S440 (infill) with 8.29% Cu, 0.25%Zn, and 133 g/t Ag over a true width of 4.9m, including 10.75% Cu, 0.32% Zn, and 166 g/t Ag over a true width of 3.4M; and hole CG-19-S444 (infill) with 3.31% Cu, 0.11% Zn, and 82 g/t Ag over a true width of 11.8m, including 7.89% Cu, 0.2%Zn, and 198 g/t Ag over a true width of 3.7m.
  • Torex Gold Resources Inc., announced an updated resource estimate for its Media Luna project in Guerrero. It reported an indicated resource of 12.6M tonnes of 3.27 g/t Au, 38 g/t Ag, and 1.16% Cu for a total of 1.32 M Oz Au, 15.3M Ag, and 322M Lb Cu (2.24M Oz Au Eq at a grade of 5.5 g/t AuEq). Inferred resources are 33.5M tonnes of 2.49 g/t Au, 24 g/t Ag, and 0.93% Cu for a total of 2.68M Oz Au, 25.5M Oz Ag, and 686M Lb Cu (4.56M Oz AuEq at a grade of 4.23 g/t AuEq).
  • SilverCrest Metals Inc., announced it plans to release in Q1, 2020 in-fill and expansion drill results from Babi Sur, Babi Vista Discover, Babicanora Norte, Babicanora, Babicanora FW, and Area 118 Discovery veins. Drill results will be incorporated into the updated resource to be released in the FS in H1, 2020. SilverCrest plans to conduct a 125,000m of exploration drill program focused on expanding measured and indicated resources to be considered for inclusion in the initial reserve estimate with the FS. In anticipation of a positive construction decision based on the FS, and the approval from the government of the change of use of soil permit, the company will commence to construct offices, warehousing, water works, and roads access improvements in H1.
  • Minera Alamos Inc., commenced the construction of its Santana mine in Sonora. It plans to provide construction updates during the 6-8 months construction period. During January and February, the company along with members of the community will begin to prepare the areas designed for the leach pads and holding pods, as well as initiate road construction within the planned mine area.
  • Southern Silver Exploration Corp., announced that the metallurgical tests work at its Cerro Las Minitas project in Durango confirmed that a marketable Cu, Pb, and Zn concentrate can be produce, increasing its value compared with earlier batch testing. These results are highlighted by a 94.7% Zn recovery grading 54.0% Zn in the Zn concentrate and grades of 5,504g/t Ag and 65.1% Pb in the Pb concentrate. Ag strongly partitions into the Pb and Cu concentrates for a combined 83.8% Ag recovery into concentrates that traditionally receive favourable payable terms.

ON DEALS AND CORPORATE ISSUES

  • Sonoro Metals Corp., granted stock options to certain directors, officers and consultants of the company to purchase an aggregate of 3,040,000 common shares.
  • Radius Gold Inc., reported that it has signed a binding agreement to acquire the 800 Ha Palmillas property from a private family which hosts high-grade epithermal Au-Ag mineralization and is adjacent to Amalia project in Chihuahua. During due diligence evaluation, Radius sampled outcrops and old adits obtaining encouraging results, such as 9.5 g/t Au and 73 g/t Ag over 4m, and 1.54 g/t Au and 58 g/t Ag over 10.5m. The company can earn a 100% interest in the Palmillas property by making staged payments over a period of five years for a total USD $350K, of which USD $200K is a final payment at the end of five years.

ON SOCIAL RESPONSIBILITY

  • With an investment of MXP $9M, and a direct benefit for 1,200 residents of the area, Governor of Durango, José Rosas Aispuro Torres, delivered road infrastructure works, in compliance with one more commitment to the inhabitants of Tepehuanes. The state executive said that this is a work that was carried out thanks to the resource of the Mining Fund, which made it possible to build eight thousand square meters of pavement with hydraulic concrete, directly benefiting the inhabitants of four colonies of the Municipal head.
  • The Peñoles Community Center, will give a new human development workshop. It also announced that another of the Peñoles Community Center workshops with the highest demand is that of teaching English, which students attend to receive instruction three days a week in both morning and evening hours.

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, an epithermal quartz vein displaying boiling textures in a prospect in Zacatecas, Mexico.  Photo by Miguel A Heredia.

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

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

By Miguel A Heredia

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

ON MEXICO ISSUES

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

ON EXPLORATION

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

ON MINING

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

ON FINANCING

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

ON RESOURCES AND DEVELOPMENT

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

ON DEALS AND CORPORATE ISSUES

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

ON SOCIAL RESPONSIBILITY

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

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

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

Americas Gold and Silver Provides a Relief Canyon Construction Update and Reports Third Quarter Production

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TORONTO, ONTARIO – November 1, 2019 – Americas Gold and Silver Corporation (TSX: USA) (NYSE American: USAS) (“Americas” or the “Company”), a growing North American precious metals producer, provides a construction update on the Relief Canyon gold mine in Nevada. The Company also reports Q3, 2019 production and operating cost results on a consolidated and individual basis for its Cosalá Operations in Mexico and Galena Complex in Idaho.  All figures are in U.S. dollars.

TELSON RECEIVES CONDITIONAL APPROVAL FOR A US$12MN LINE OF CREDIT FROM INTERNATIONAL INVESTMENT BANK TO FINALIZE TAHUEHUETO GOLD MINE CONSTRUCTION

TSN_NR_212_Sep4_2019

Vancouver, British Columbia – TheNewswire – September 4, 2019 – Telson Mining Corporation (” Telson ” or the ” Company ” (TSXV: TSN) , ( OTC:SOHFF ) , ( Frankfurt-TSGN ) (formerly SQ82)) is pleased to announce that it has received conditional approval for a US$12 million medium term loan from an International Investment Bank (” Bank “) to finalize construction at Tahuehueto.

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

 

Diatreme breccia

By Miguel A Heredia

During the thirty three week of the year (August 12th to August 18th, 2019), at least 23 press releases were announced by companies working in Mexico, with six announcing financial rounds, five communicating production results, four reporting on resources and development of their projects, three disclosing deals and corporate issues, three informing on exploration results, and two commenting on Mexican issues.   ON MEXICO ISSUES, Mexican president, Andres Manuel Lopez Obrador, declared that current mining concessions won´t be cancelled but no new ones are going to be issued. Fresnillo plc led the 2018 Pb production in Mexico.  ON EXPLORATION, In Chihuahua, Kootenay released exploration drilling results from its Columba project. In Durango, Gainey advanced the drilling program at its Las Margaritas project. In Zacatecas, Galore provided an update of the drilling program performed at its Dos Santos project in Zacatecas. ON MINING, Americas Silver, Aura Minerals, Impact, Odyssey, and Sierra Metals reported production and financial results from their Mexican mining operations for the period Q2, 2019. ON FINANCING, Defiance, Galore, Impact, Kootenay, SilverCrest, Southern Silver, and Valterra announced financial rounds. ON RESOURCES AND DEVELOPMENT, Endeavour reported positive drilling and underground channel sampling results from its Parral project in Chihuahua. Minera Alamos announced commencement of phase 2 drilling at its Santana Au project in Sonora. Premier Gold provided an update of its ongoing drilling program at its Mercedes mine in Sonora. Mag Silver provided an update of mine development at its Juanicipio project in Zacatecas. ON DEALS AND CORPORATE ISSUES, Santacruz and its 50% owned subsidiary company Carrizal Mining entered into an agreement to extend the expiry date of the current Zimapan mine lease agreement located in Hidalgo state. Telson curtailed mining operations at its Campo Morado mine in Guerrero and plans to focus on construction of mine at its Tahuehueto Au project in Durango.  Discovery Metals granted stock options to certain officers, directors, employees, and consultants (Puerto Rico project, Coahuila).

 ON MEXICO ISSUES

  • Mexican president, Andres Manuel Lopez Obrador, declared that current mining concessions won´t be cancelled but no new ones are going to be issued. He said that concessions have not being held for production purposes but rather for financial speculation. He also asked mining companies to take care of the environment and pay salaries to the miners as in USA and Canada. Mining companies remain to be seen if his vow will translate into action since, until now, there is not a detailed legal and regulatory framework.
  • Fresnillo plc., led the 2018 Pb production in Mexico. Five companies produced approximately 73% of the 538.3M Lb Pb produced in 2018, with Fresnillo producing 22.1%, followed closely by Newmont-Goldcorp with 22%.

ON EXPLORATION

  • Kootenay Silver Inc., announced drill results of the six first holes drilled at its Columba Silver project in Chihuahua. Results have confirmed shallow-high grade Ag mineralization associated to quartz-calcite veins, breccias, and stockworks in five of the six holes. Widths range from 4.8m to 16.5m on the F Vein, and from 1.17 to 1.5m on unknown hanging wall veins in two of the holes. Significant intersections were encountered in hole CDH-19-01 with 93 g/t Ag over 16.5m, including 141 g/t Ag over 9.42m, and including 390 g/t Ag over 1m; hole CDH-19-02 with 104 g/t Ag over 14m and 213 g/t Ag and 0.31 g/t Au over 3.73m, including 328 g/t Ag over 1m, and 332 g/t Ag and 0.55 g/t Au over 0.70m; hole CDH-19-05 with 230 g/t Ag over 4.83m, including 518 g/t Ag over 2m, and including 775 g/t Ag over 1.15m; and hole CDH-19-06 with 133 g/t Ag over 10.45m before entering into a mine stope over 3m wide, including 287 g/t Ag over 1.45m. the hole CDH-19-06 also hit two hanging wall veins with 235 g/t Ag over 1.5m wide, and 267 g/t Ag over 0.87m wide. “Drilling thus far has tested approximately 450 meters of strike in broad spaced fences of holes from depths as shallow as 20 meters to as deep as 150 meters with 5 of 6 holes intercepting the F vein”.
  • Gainey Capital Corp., reported that is doing the last activities to prepare the infrastructure required to commence the drilling program at its Las Margaritas project in Durango. The focus now is on repair and constructs 39km of road to facilitate access to and between drill sites. The company will provide further updates as the drilling commences.
  • Galore Resources Inc., announced that it has completed four core holes for a total of 1,324m at El Alamo target within its Dos Santos project in Zacatecas. These four holes are part of a 2,500 drilling program. Samples from holes EA-001 and EA-002 were submitted to the lab and results are expected soon. Hole EA-003 was abandoned prior to reaching the target depth due to mechanical issues. “Drill holes have intersected more extensive zones of pyrite mineralization than anticipated, both fresh and oxidized. Pyrite and strongly oxidized zones, normally within brecciated limestone, are of particular interest based on previous sampling of the surface outcrops that were found to contain weakly anomalous gold values to high-grade gold values (high of 20g/t Au) from previous trench sampling”.

ON MINING

  • Americas Silver Corporation, reported revenue of $15M and net loss of $8M for the period Q2, 2019. Guidance for 2019 remains unchanged at 1.6-2.0M Oz Ag and 6.6-7.0M Oz AgEq at cash cost of $4.0 to $6.0 per Oz Ag and AISC of $10.0-12.0 per Oz Ag produced. The Company had a cash balance of $6.3M as at June 30, 2019.
  • Aura Minerals Inc., announced revenue of USD $50,374,000 for the period Q2, 2019, from which USD $16,828,000 correspond to Cu revenue from its Aranzazu mine in Zacatecas. Total cost of production at Aranzazu was USD $12,915,000, depletion and amortization of USD $1,618,000, gross margin of USD $2,295,000. The company had other expenses for the amount of USD $1,872,000, for a resulting income before taxes of USD $423K.
  • Impact Silver Corp., presented Q2, 2019 production and financial results from its Zacualpan mining district in Mexico State. Impact milled 33,616 tonnes of 160 g/t Ag to produce 145.6K Oz Ag. The company reported revenues of $2.8M.
  • Odyssey Marine Exploration, announced financial results for Q2, 2019. Odyssey reported a net loss of $2.8M and total revenue of $0.8M (Bay of Ulloa phosphate project, Baja California Sur).
  • Sierra Metals Inc., reported Q2, 2019 consolidated production and financial results from their Mexican and Peru operations. The company produced 9.7M Lb Cu, 0.8M Oz Ag, 16.6M Lb Zn, 8.1m Lb Pb, and 2,540 Oz Au. Cash cost per Lb CuEq payable Lb was USD $1.51 and an AISC of USD $2.55, while at its Cusi mine, the cash cost per Oz AgEq produced was USD $16.49 and an AISC of USD $25.67. Sierra Metals announced an adjusted EBIDTA of USD $126M, and an operating cash flow of USD $12.8M.

ON FINANCING

  •  Defiance Silver Corp., closed a non-brokered private placement in the amount of $3,323,106. Gross proceeds will be used to continue an aggressive exploration program at its San Acacio Silver project in Zacatecas. It exploration program will be focused on drilling the new Ag shoots along the Veta Grande vein, the recently defined Ag-Cu geophysical anomaly, and further resource expansion.
  • Galore Resources Inc., announced that is continuing its effort to implement a non-brokered private placement to raise up to USD $1.5M. Net proceeds of the non-brokered private placement will be used for continued drilling of the El Alamo claim, drilling at the Los Gemelos claim (Dos Santos project in Zacatecas) and for general working capital.
  • Impact Silver Corp., completed its second series of the third and final tranche of a non-brokered private placement for gross proceeds of $554.2K. Net proceeds will be used for greenfield exploration on its large ground package in Zacualpan Silver mining district, Mexico State, and projects such as San Ramon Deep extension, Manto America, and Santa Teresa.
  • Kootenay Silver Inc., announced a non-brokered private placement for gross proceeds of $5M. Net proceeds of the private placement will be used to advance exploration of the Columba Ag project in Chihuahua, potentially adding a further drill rig to expedite the current drill program, and to fund further work at Copalito, Sinaloa, La Cigarra, Chihuahua, and other projects as well as for general working capital purposes.
  • SilverCrest Metals Inc., completed its prospectus offering for gross proceeds of $25.3M. The company also announced that SSR Mining Inc., purchase SilverCrest stock in a separate non-brokered private placement for gross proceeds of CAD $4.6M. The company plans to use the net proceeds to continue exploration and advancement of its Las Chispas project in Sonora to feasibility level, and for working capital purposes.
  • Southern Silver Exploration Corp., closed the first tranche of a non-brokered private placement for gross proceeds of $3.1M. At final closing, due to increased interest in the offering, the company plans to close on an oversubscribed amount to a maximum of 22.5M units for gross proceeds of $4.5M. Net proceeds will be used to continue the 2019-20 exploration programs on its Cerro Las Minitas project in Durango.
  • Valterra Resource Corporation, extended 30 days the closing of its equity financing. The offering is for $375K with an over-allotment option to increase it by up to 10%. Net proceeds from the private placement may be used in part to fund costs associated with initial exploration programs for the Los Reyes Au-Cu project in Chihuahua.

 ON RESOURCES AND DEVELOPMENT

  •  Endeavour Silver Corp., reported positive exploration drilling results from its Parral project in Chihuahua. The company completed 15 surface and underground drill holes totaling 3,160m, and 462 underground channel samples in 3 blocks in the Sierra Plata mine on the Veta Colorada vein system. Significant drill intersections are in hole VCS-02 with 346 g/t Ag over 9.6m true width (TW), including 784 g/t Ag over 0.50m TW in the hanging wall of Veta Colorada, and 283 g/t Ag over 5m TW, including 975 g/t Ag over 0.5m TW in Veta Colorada; hole VCU-03 with 326 g/t Ag over 8.2m TW, including 727 g/t Ag over 0.3m TW in Veta Colorada; hole VCU-04 with 253 g/t Ag over 7.7m TW, including 1,200 g/t Ag over 0.4m TW; and hole VCU-05 with 332 g/t Ag over 13.1m TW, including 3,770 g/t Ag over 0.2m TW. Channel sampling highlights include 2 samples exceeding 1,000 g/t Ag such as 1,705 g/t Ag over 0.55m TW, and 1,480 g/t Ag over 0.95m TW. The rest of the sampling results vary between 509 and 911 g/t Ag in widths ranging from 0.3 and 1.50m. The full width of the vein is not exposed so the sampling is partially indicative of the Ag mineralization.
  • Minera Alamos Inc., announced the commencement of phase 2 drilling at its Santana Au project in Sonora. The goal is to expand resources at the main Nicho deposit as well as follow-up drilling on several new discoveries made during Phase 1 work in late 2018.
  • Premier Gold Mines Limited., provided and update of its ongoing drilling program at its Mercedes mine in Sonora. The company has confirmed two high-grade zones: the Lupita extension, and the newly discovered San Martin target area. Significant drill interceptions were encountered in hole L19-422D at the San Martin area with 14.02 g/t Au and 136 g/t Ag over 2.9m; hole L19-414D at the Lupita area with 8.41 g/t Au and 68 g/t Ag over 3.9m, including 16.2 g/t Au and 92 g/t Ag over 1.4m; hole L19-414D with 4.57 g/t Au and 27 g/t Ag over 4.5m; and hole UG-RDO19-40 at Rey de Oro area with 18.15 g/t Au and 27 g/t Ag over 2.3m.
  • Mag Silver Corp., and its JV partner Fresnillo plc, provided and update of mine development at its Juanicipio project in Zacatecas. The company reported that underground development continues and is now approaching 22km to date, “with the current emphasis on: developing the three internal spiral footwall ramps at depth along the full strike length of the Valdecañas Vein system; constructing the underground crushing chamber; advancing the conveyor ramp from both ends to and from the planned mill site (with the box cut for the underground conveyor exit portal now complete); integrating additional ventilation and other associated underground infrastructure, and starting of the internal shaft sinking (head chamber for the shaft has been excavated and winding equipment ordered)”. Progress at Juanicipio has been rapid with multiple engineering milestones delivered, and construction on track for H2, 2020 commissioning target according to the operator Fresnillo. The mill-site preparation is underway and the construction of surface infrastructure facilities continues.

 ON DEALS AND CORPORATE ISSUES

  •  Santacruz Silver Mining Ltd., and its 50% subsidiary company Carrizal Mining S.A. de C.V., entered into an agreement with Minera Cedros S.A. de C.V., (a wholly-own subsidiary of Grupo Peñoles, S.A.B. de C.V.), to extend the expiry date of the Zimapan mine lease agreement, located in Hidalgo state. “Carrizal must make monthly payments to Minera Cedros based on 4% NSR from the concentrates produced by the Zimapan mine for each respective month, subject to the minimum payment each month being USD $45K and the maximum payment being USD $60K”.
  • Telson Mining Corporation, curtailed indefinitely mining operations at its Campo Morado mine in Guerrero and placed the mine into care and maintenance. The decision was taken since the company is concerned about certain activities in the vicinity of Campo Morado that put at risk the health and welfare of its workforce. The company plans to focus on construction of mine at its Tahuehueto Au project in Durango.
  • Discovery Metals Corp., granted stock options to certain officers, directors, employees, and consultants (Puerto Rico project, Coahuila).

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 diatreme breccia in a prospect in Durango, Mexico.  Photo by Miguel A Heredia.