Mineral Resources

The Mining and Exploration News in Mexico: Highlights on the Third Week of December 2023

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By Jorge Cirett                                             

During the 51st week of the year (December 18th to December 24th, 2023), companies working in Mexico posted 28 news releases. Three companies reported exploration advances on their properties, two companies released quarterly reports and one other the successful breakthrough of a major tunnel. In a busy week for financing matters, six companies entered, closed, increased or amended their private placements, one company updated the disclosure on its incentive warrant program, another announced its intention to repurchase up to 10% of its outstanding shares and another one settled a debt with shares.  Two companies released drilling results from their advanced properties and one more the completion of a drilling campaign. Two companies announced a merger, one company announced the rent to purchase agreement on a processing plant, one other provided a summary of yearly activities and plans for 2024. A company sold a subsidiary to a local enterprise while other sold a subsidiary to a foreign one. One company announced a board appointment and one more the results of its AGM. ON MEXICO ISSUES, fossil fuels produce 62% of the energy used by the mining industry in Mexico, and 21% of the water is from underground sources. ON EXPLORATION, in Sonora, Colibri Resource released drilling results from Evelyn; Tocvan Ventures plans a 10,000 m drilling program at Pilar; Riverside Resources reported on field work and rock sampling at Cecilia. ON MINING, Starcore International filed its second quarter 2023 report, GoGold Resources released quarterly-yearly report. Torex Gold completed the tunnel connecting the Limon-Guajes operations with the Media Luna project under the Balsas River. ON FINANCING, Endeavour Silver entered into an agreement to sell up US$60 M in shares in a 25-month period. Heliostar Metals updated the disclosure on the closing of its warrant exercise incentive program. Regency Silver announced a non-brokered private placement (CAD$800 K). Silver Viper is to amend its non-brokered private placement. Alamos Gold is to repurchase up to 10% of its stock. Luca Mining closed a CAD$2 M non-brokered private placement. GR Silver Mining settled a $100 K debt with shares. Canuc Resources closed a CAD$2 M non-brokered private placement. Atacama Copper is to increase its non brokered private placement to $12 M.  ON RESOURCES AND DEVELOPMENT, Sierra Madre Gold and Silver filed a technical report on La Guitarra project, in Estado de Mexico. Pan American Silver presented the results of the PEA on La Colorada Skarn project, in Zacatecas. Aztec Minerals completed an RC drilling program at Cervantes, in Sonora. ON DEALS AND CORPORATE ISSUES, Atacama Copper entered into a business combination agreement with TCP1. Santacruz Silver Mining sold a subsidiary to a Mexican enterprise. Xali Gold Corp. entered into a rent to purchase agreement to sell the San Dieguito de Arriba mill in Nayarit to a Mexican company. Bear Creek Mining and Mag Silver appointed officers. Vizsla Silver provided a summary of its 2023 activities and 2024 plans. Sailfish Royalty entered into a share purchase agreement with CMC Metals for the sale of Sailfish’s Mexican subsidiary controlling the Gavilanes project in Durango. Santacruz Silver Mining held its AGM.  ON SOCIAL RESPONSIBILITY, Capstone Copper published its 2022 sustainability report.

ON MEXICO ISSUES

  • Camimex (Cámara Minera de México) informed that 62% of the energy used by the mining industry in Mexico is produced by fossil fuels, and 21% of the water is from underground sources.

ON EXPLORATION

  • Colibri Resource Corp. announced that the recently completed seventeen-hole 2,200 m reverse circulation drilling program at the Evelyn property in the EP project in Sonora has discovered a new zone of mineralization. The six holes on the new West Sahuaro zone intercepted mineralization, with hole length intercepts of 23 m @ 0.35 gpt Au; 66 m @ 0.273 gpt Au; 6 m @ 0.753 gpt Au; 24m @ 0.148 gpt Au; 26 m @ 0.323 gpt Au (including 5 m @ 0.779 gpt Au); 27 m @ 0.252 gpt Au; 37 m @ 0.195 gpt Au; 4 m @ 1.175 gpt Au; 50 m @ 0.180 gpt Au. West Sahuaro was prioritized based on a gold soil anomaly 500 m in length, a coincident mapped structure and IP geophysical interpretation. Relevant intervals from drilling on the Main Zone comprise 10 m @ 0.242 gpt Au; 21 m @ 0.152 gpt Au; 1 m @ 0.351 gpt Au; 1 m @ 0.967 gpt Au.
  • Tocvan Ventures Corp. informed of plans for a 10,000 m drilling program at its Pilar project in Sonora. The program is focused in resource definition, targeting a maiden mineral resource estimate for late 2024. Depending on market conditions, the program could be extended to 20,000 m to include evaluation of targets areas across Pilar and the earlier stage Picacho project, also in Sonora.
  • Riverside Resources Inc. reported field work and rock sampling from the Cecilia project in Sonora, constructing a model of a composite dome system with superimposed veins. Results from 34 rock samples returned up to 7.3 gpt Au, 144 gpt Ag in the Magallanes target area. Agua Prieta, San Jose, North Breccia, Central and East trends are the main structural corridors, interpreted as the surface expression of a rooted rhyolite dome system, with higher grades at the base. All the information gathered is to be used in target delineation for the planned 2024 drill program.

ON MINING

  • Starcore International Mines Ltd. filed the results for the second quarter ended October 31, 2023. During the period, the San Martin mine in Queretaro milled 58 K tonnes averaging 1.42 gpt Au, 14.8 gpt Ag, recovering 85.2% Au, 48.8% Ag, to produce 2.3 K Oz Au, 13.5 K Oz Ag (2.4 K Oz AuEq), with a mine operating cash cost of $1,690 per Oz AuEq. The operating loss in the quarter was $1.03 M whilst cash and short-term investments were $4.7 M at October 31, 2023.
  • GoGold Resources Inc. announced financial results for the year ending September 30, 2023, with the Parral operations in Chihuahua generating $30 M from the sale of $1.4 M Oz AgEq. During the period 706.9 K Oz Ag, 7,032 Oz Au, 615 tonnes Cu (1.52 M Oz AgEq) were produced. Cash at the end of the period of US$95.3 M.
  • Torex Gold Resources Inc. announced the successful breakthrough of the Guajes tunnel which connects the existing operations on the north side of the Balsas River with the resource base of the Media Luna Cluster on the south side, at its Morelos Complex in Guerrero. Advance rates averaged 7.1 m per day since the start of 2023, and 8 m per day last November, which is impressive, given the 6.5 m high by 6.0 m wide dimensions of the tunnel.

ON FINANCING

  • Endeavour Silver Corp. entered into a sales agreement with a syndicate of agents lead by BMO Capital Markets Corp. pursuant to which the company may, at its discretion and from time to time during the 25-month term of the agreement, sell common shares of the company that add up to US$60 M in aggregate gross proceeds (Terronera, Jalisco).
  • Heliostar Metals Ltd. updated its disclosure regarding the closing of its warrant exercise incentive program. “Capitalized terms used but not defined in this news release have the meanings given to them in the Company’s news release dated December 11, 2023”. An additional 18,000 outstanding warrant were exercised pursuant to the incentive program. A total of 17.6 M common shares were issued upon the exercise of 17.6 M outstanding warrants, providing aggregate gross proceeds of $5.3 M. A total of 5.87 M incentive warrants were issued, and 28.76 M outstanding warrants remain (Ana Paula, Guerrero).
  • Regency Silver Corp. announced a non-brokered private placement to raise up to CAD$800 K (Dios Padre, Sonora).
  • Silver Viper Minerals Corp. intends to amend its non-brokered private placement financing to raise up to $2 M in gross proceeds. “Concurrently with the announcement of the Amended Offering, the Company is terminating its previously announced non-brokered private placement pursuant to the Listed Issuer Financing Exemption (the “LIFE”) of National Instrument 45-106 – Prospectus Exemptions (the “LIFE Offering”). In connection with the termination of the LIFE Offering, the Company is withdrawing the offering document that it filed on December 8, 2023, with respect to the LIFE Offering. Purchasers under the Amended Offering should not rely on such offering document.” (La Virginia, Sonora).
  • Alamos Gold Inc. filed and and received acceptance from the Toronto Stock Exchange on a notice of intention to repurchase for cancellation up to 34.58 M class A common shares (10% of the public float) thorough a Normal Course Issuer Bid from December 24, 2023 to December 23, 2024 (Mulatos, Sonora).
  • Luca Mining Corp. closed the CAD$2 M non-brokered private placement previously announced, raising CAD$2 M in gross proceeds, and reserving a 25% over subscription option on the private placement (Campo Morado, Guerrero).
  • GR Silver Mining Ltd. issued 1.34 M shares to settle and aggregate debt of $100.8 K outstanding as October 31, 2023. Directors and officers of the company participated in the debt settlement transactions, receiving an aggregate of 788.9 K shares to settle a $59.2 K debt (Plomosas, Sinaloa).
  • Canuc Resources Corp. closed a non-brokered private placement financing, raising gross proceeds of CAD$2 M (San Javier, Sonora).
  • Atacama Copper Corp. announced the intention to increase the size of its previously announced brokered private placement for aggregate gross proceeds of up to $12 M. The first tranche has been closed with aggregate gross proceeds of $7 M (Yecora, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Sierra Madre Gold and Silver Ltd. filed a technical report with the previously disclosed mineral resource estimate for the La Guitarra project in Estado de Mexico. The estimate includes 3.84 M tonnes @ 146 gpt Ag, 0.96 gpt Au (220 AgEq) in indicated resources containing 18 M Oz Ag, 118 K Oz Au, and 4.1 M tonnes @ 113 gpt Ag, 0.52 gpt Au (153 gpt AgEq) in inferred resources, containing 20.1 M Oz Ag, 68 K Oz Au.
  • Pan American Silver Corp. released the results of a preliminary economic assessment (PEA) on its La Colorada Skarn project in Zacatecas. The PEA envisions a 50 K tonnes per day (tpd) sub-level cave mining method, accessed by decline ramps and two ventilation shafts. Estimated production for the first ten years is 17.2 M Oz Ag, 427 K tonnes Zn, 218 K tonnes Pb, on recovery rates of 84.8% Ag, 93.7% Zn, 84.3% Pb. The estimated initial capital cost is $2,829 M over a six-year construction period, a payback period of 4.3 years, total life of mine (LOM) of $951 M and a cumulative after-tax cash flow of $5,689 M. The estimated mineral resource is 173.6 M tonnes @ 2.79% Zn, 1.32% Pb, 33 gpt Ag in the indicated category and 103.6 M tonnes @ 2.47% Zn, 1.03% Pb, 33 gpt Ag in the inferred category.
  • Aztec Minerals Corp. completed 13 reverse circulation holes for a total of 1,646 m at its Cervantes project in Sonora. The holes were drilled on the California gold zone target, with step out drilling to expand the zone to the north, west, east and south, where previous drilling has intercepted extensive shallow, wide oxide mineralization. “The gold mineralization at Cervantes is characterized by oxidized and unoxidized stockwork veinlets of A, B, and C types and disseminated sulfide sites, with silicification and phyllic alterations, typical of large porphyry Au hosted deposits in similar geological settings. Potassic alteration is present in places and is associated with sulphide mineralization as well.” Geological logging of the RC chips showed evidence of wide zones of oxidized, strongly altered rocks with multiple veinlets. Results are pending.

ON DEALS AND CORPORATE ISSUES

  • Atacama Copper Corp. has entered into a business combination agreement on December 15, 2023 with TCP1 Corp. and 1000723052 Ontario Corp. “a wholly-owned subsidiary of the Company, pursuant to which the Company will acquire all of the issued and outstanding shares of TCP1 in exchange for common shares of the Company which will result in the reverse takeover of the Company by TCP1.” After the business combination the company will consolidate its share capital on 6 to 1 basis. Prior to the closing of the proposed transaction Atacama Copper shall complete the private placement for gross proceeds of CAD$10 M. The net proceeds are to be used to advance exploration programs with focus on Cristina (Chihuahua) and Yecora (Sonora).
  • Santacruz Silver Mining Ltd. announced the sale of its shares in Santacruz Holdings Ltd., “which has 100% ownership in Impulsora Minera Santacruz, S.A. de C.V., a non-core Mexican subsidiary of the Company, to a private Mexican group” (Zimapan, Hidalgo).
  • Xali Gold Corp. entered into a rent to purchase agreement with Grupo Minero WIYA (A Mexican company) to operate the San Dieguito de Arriba (SDA) plant in Nayarit. WIYA agreed to pay Xali US$150 K per month (of which the first US$150 K were paid in early December 2023) for ten months. Upon completion of paying a total of US$1.5 M within 12 months, WIYA will have the right to own the SDA plant, and the obligation to complete all repairs and permitting to get the SDA plant into operation.  The company will share the profits from the transaction with Magellan Acquisition Corp., as each own 50% of the SDA plant (El Oro, Estado de Mexico).
  • Bear Creek Mining Corp. announced the appointment of Mr. Fernando Ragone as chief financial officer (CFO).
  • Vizsla Silver Corp. provided a summary of its 2023 activities and key objectives for 2024. The company completed over 98,000 m of drilling at Panuco, in Sinaloa, expanding and upgrading mineralization at the Copala and Napoleon areas. “Mineralization at Copala has now been traced over 1,770 metres along strike, ~450 metres down dip, and remains open to the north and southeast”. Notable discoveries include the La Luisa and Molino veins, with La Luisa having been traced for 1,670 m along strike and to 450 m of depth, with an average width of 3.21 m. Key objectives for 2024 include an updated mineral resource estimate in January 2024, a potential royalty spinout, the delivery of a maiden PEA in H1 2024, complete an updated metallurgical testing, complete +65,000 m of resource/discovery drilling and completing a 1,100 line Km EM survey and acquire high-resolution multispectral satellite imagery for the district.
  • Sailfish Royalty Corp. entered into a share purchase option agreement with CMC Metals Ltd. granting CMC the option to acquire 100% of the shares of Swordfish Silver Corp. “Swordfish, through Sailfish de Mexico S.A. de C.V., holds the mineral rights in and to the silver exploration project located in the Municipality of San Dimas, State of Durango, Mexico, known as the Gavilanes property”. CMC reimbursed US$27.4 K to Sailfish for project expenses in 2023. In order to exercise the option, CMC has to pay Sailfish US$500 K before the end of March 2024, US$500 K before the end of March 2025, US$500 K before the end of March 2026 and US$2 M before the end of March 2027; issuing 1 M CMC shares upon acceptance by the TSX of the agreement, $700 K in CMC shares on or before the end of March 2024 and $500 K in shares on or before the end of March 2025; also CMC must incur exploration expenses of C$1 M before the end of March 2025, C$1.5 M before the end of March 2026 and C$2.5 M on or before the end of March 2027.
  • Santacruz Silver Mining Ltd. held its annual general meeting on December 20, 2023 (Zimapan, Hidalgo).
  • Mag Silver Corp. appointed Tom Peregoodoff to the board of directors effective January 1, 2024 (Juanicipio, Zacatecas).

ON SOCIAL RESPONSIBILITY

  • Vizsla Silver Corp. published its inaugural sustainability report. Key performance highlights include: The commissioning of a green house inventory and exploration of options to incorporate on-site renewable energy. Bi-annual health fairs and community health campaigns and achieving one million hours of consecutive work hours without a lost time incident. Preparation of the inaugural sustainability report and the use of a new software platform to track and enhance ESG performance (Panuco, Sinaloa).

On the image below: Silicified ridges on a project of the Sonoran Desert. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the Fourth Week of November 2023

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By Jorge Cirett                                             

During the 47th week of the year (November 19th to November 26th, 2023), companies working in Mexico posted 22 news releases. Four companies reported exploration advances on their properties, three companies released Q3 2023 reports, one on metallurgical test results and one more on new concentrate production. One company announced the repurchase of part of its shares, one a financing round, one an incentive warrant program and one more the payment of dividends.  One company released drilling results from a past producing mine, and one other filed a technical report on its property. One company reported on the acquisition of additional land adjacent to its mining operations, and two more on the appointment of directors. ON MEXICO ISSUES, the country has attracted US$2,737 M of direct foreign investment on mining this year.  ON EXPLORATION, in Sonora, Aztec Minerals has completed seven RC holes at Cervantes; Colibri Resource and Silver Spruce updated on project work at Diamante. In Chihuahua, Kootenay Silver released results from three holes at Columba. In Zacatecas, Radius Gold presented the results of the last drill hole at Tropico. ON MINING, Impact Silver, Bear Creek Mining and Guanajuato Silver presented Q3 2023 production results. Luca Mining presented results from metallurgical tests at Campo Morado. Golden Minerals begun to produce gold-bearing pyrite concentrates at Velardeña. ON FINANCING, Teck Resources intends to repurchase up to 7.8% of its shares. Oroco Resource launched a financing round for up to $2.5 M. Heliostar Metals is encouraging the early exercise of share purchase warrants. Alamos Gold declared a quarterly dividend.  ON RESOURCES AND DEVELOPMENT, Silver Storm released results from drilling at La Parrilla past-producing mine in Durango. Sonoran Desert filed a technical report on the Cuatro Hermanos property in Sonora. ON DEALS AND CORPORATE ISSUES, Coeur Mining signed a purchase agreement with Fresnillo PLC to acquire mining concessions adjacent to its mining operations at Palmarejo in Chihuahua. Osisko Development and Orla Mining announced the appointment of directors. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • According to information from the Economy Secretariat (Secretaría de Economía) Mexico has attracted US$2,737 M of direct foreign investment on mining this year, and US$9,089 M during the first five years of the present administration.
  • According to Camimex, in a note published on El Economista, three companies control 80% of mining production by Mexican enterprises: Grupo Mexico, Fresnillo PLC and Peñoles.

ON EXPLORATION

  • Radius Gold Inc. provided results from the last of hole of the 1,300 m diamond drilling program at the Tropico project in Zacatecas. Highlighted intervals comprise 9.02 m @ 0.11 gpt Au; 1.53 m @ 0.33 gpt Au; 4.58 m @ 0.22 gpt Au; 19.82 m @ 0.15 gpt Au. “Drilling defined a large gold mineralized breccia body that starts at surface and to date defined 250m down dip….. The drilling encountered wide zones of classic low sulphidation epithermal alteration, high level chalcedonic silica, banded stockwork and massive quartz veining, and breccias with gold mineralization, but not significant high grade mineralization”.
  • Aztec Minerals Corp. announced the completion of the first seven holes of the current drilling program at Cervantes, in Sonora. The eleven-hole reverse circulation drilling program envisages 1,650 m of which 963 m have already been completed in the California zone, while step-out drilling is to focus in expansion. Results are pending. “The gold mineralization is characterized by oxidized and unoxidized stockwork veinlets of A, B, and C types and disseminated sulfide sites, with silicification and phyllic alterations. Potassic alteration is present in places and is associated with mineralization as well”.
  • Colibri Resource Corp. and JV partner Silver Spruce Resources Inc. report the discovery of Au-Ag showings on the Diamante property in Sonora. Recent work in the property includes geological mapping, evaluation and sampling of historical showings, collection and assaying of 49 stream sediment samples and 60 outcrop samples. New mineralized showings in the northern and southern parts of the concession returned assays of 3.52 gpt Au, 121 gpt Ag; 0.122 gpt Au, 197 gpt Ag; 0.818 gpt Au, 5 gpt Ag; 0.749 gpt Au, 2 gpt Ag; 3.34 gpt Au, 20 gpt Ag. The Diamante property exhibits characteristics of “epithermal low to intermediate sulfidation Ag-Au (Pb-Zn), high sulfidation Au-Cu, and potential transition zones within and peripheral to porphyry style Au-Cu mineralization”.
  • Kootenay Silver Inc. announced results from three additional drill holes at its Columba project in Chihuahua. The drill program envisages 3,000 m on 12 to 15 holes to extend known mineralization on the “D” vein target area. Highlighted core length intervals comprise 29 m @ 208 gpt Ag, 0.2% Pb, 0.5% Zn (including 9.67 m @ 510 gpt Ag, 0.2 gpt Au, 0.5% Pb, 1.0% Zn; which includes 2.37 m  1,142 gpt Ag, 0.1 gpt Au, 0.9% Pb, 2.5% Zn), 10.1 m @ 152 gpt Ag, 0.2% Pb, 0.4% Zn; 3.1 m @ 308 gpt Ag, 0.1% Pb, 0.3% Zn (including 1.56 m @ 532 gpt Ag, 0.2% Pb, 0.4% Zn). “Columba hosts an extensive network of intermediate-style epithermal quartz, carbonate +/- barite veins aligned into two broadly cross-cutting orientations. Fieldwork to date has identified numerous mineralized structures across the project measuring up to 4 kilometres in length.”

ON MINING

  • Luca Mining Corp. announced results from its optimization program at the Campo Morado mine in Guerrero. A bulk concentrate is being produced with greater than 70% Cu recovery, up from the historical 35-40% recovery range. “Overall zinc recovery is expected to increase from 76% to 86% and the final concentrate grade increases from 46% to 56% zinc over the next 12 months…. Ausenco have conducted a range of laboratory testing, initially of zinc circuit feed samples, to study the potential for improved zinc circuit stage recoveries. With a series of changes to reagents and other operational parameters in flotation in the plant, overall zinc recovery increased from 75% to 82% and the final concentrate grade from 45% to 51% zinc”. Additional work is being conducted to produce clean and higher-grade Cu and Pb concentrates.
  • Golden Minerals Co. has begun producing gold-bearing pyrite flotation concentrate from its Velardeña properties in Durango. “The Company is processing material that has been stockpiled at Velardeña since the mines last operated in 2015”. Recent favorable market terms for Au bearing pyrite/arsenopyrite concentrate are now economic to process and sell.
  • Impact Silver Corp. announced its financial and operating results for the third quarter 2023. At Zacualpan, in Estado de Mexico, throughput was 37.2 K tonnes @ 162 gpt Ag. At Plomosas, in Chihuahua, Impact has completed the final steps to get back online the 200 tpd zinc mine. “Exploration potential at Plomosas is exceptional with only 600m of the 6-kilometre-long structure assessed”. The company invested $3.8 M in exploration expenditures and mining assets, with a cash position at quarter-end of $8.9 M and working capital of $8.7 M.
  • Bear Creek Mining Corp. reported results for Q3 2023. At the Mercedes mine in Sonora, 123.5 K tonnes were mined @ 2.79 gpt Au, with 126.2 K tonnes processed averaging 2.40 gpt Au, recovering 93.4% Au to produce 9,155 Oz Au, 33.7 K Oz Ag. During the period the company entered into a restructuring agreement with Equinox Gold Corp. to convert a $26 M current liability into a non-current obligation by issuing a convertible promissory note at a competitive interest rate. A second restructuring agreement was signed with Sandstorm Gold Ltd. to reduce near-term Au and Ag stream delivery obligations and refinance and extend debt. A C$9.5 M private placement was completed also during the period. Mining methods have been changed to sub-level caving at the San Martin deposit and sub-level stoping at the Marianas deposit. Average mining costs have decreased from $80.84 per tonne mined to $68.37 during the year (15% decrease). The Mercedes structural trend has contributed with “over 580,000 ounces of gold to the mine’s historical production since 2011”. Production from the San Martin deposit increased from 400 tpd to almost 600 tpd during Q3 and is expected to reach 800 tpd during Q4 2023.
  • Guanajuato Silver Company Ltd. released financial and operating results for Q3 2023. Consolidated production from Valenciana and El Cubo mines in Guanajuato and from Topia in Durango comprises 134.9 K tonnes mined, 132.5 K tonnes milled, to produce 425.5 K Oz Ag, 3,441 Oz Au, 935.8 K Lb Pb, 857.7 K Lb Zn, or 787.1 K Oz AgEq at cash cost $20.79 per Oz AgEq and an AISC of $26.22 per Oz AgEq.
  • Sailfish Royalty Corp. announced operating and financial results for Q3 2023. No information was provided on the Gavilanes property in Durango, Sailfish’s only significant exploration property in Mexico.

ON FINANCING

  • Teck Resources Ltd. is to establish a normal course issuer bid to purchase up to 40 M Class B shares from November 2023 to November 2024, representing 7.8% of the outstanding Class B shares, or 7.9% of the public float, as at November 15, 2023. “Teck is making the normal course issuer bid because it believes that the market price of its Class B Shares may, from time to time, not reflect their underlying value and that the share buy-back program may provide value by reducing the number of shares outstanding at attractive prices. All repurchased shares will be cancelled” (San Nicolas, Zacatecas).
  • Oroco Resource Corp. announced a non-brokered private placement to raise gross proceeds of up to $2.5 M (Santo Tomas, Sinaloa).
  • Heliostar Metals Ltd. updated on its incentive warrant program designed to encourage the early exercise of share purchase warrants. To date, holders of 14.37 M outstanding warrants have committed to participate in the warrant incentive program, which if exercised would result in gross proceeds of $4.6 M (Ana Paula, Guerrero).
  • Alamos Gold Inc. declared a quarterly dividend of US$0.025 per common share. Alamos has paid dividends for 14 consecutive years, during which time $324 M has been returned to shareholders through dividends and share buybacks, including $40 M thus far in 2023 (Mulatos, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Silver Storm Mining Ltd. released results from two more holes at La Parrilla, in Durango. Highlighted core length intervals comprise 0.82 m @ 419 gpt Ag, 0.53 gpt Au, 0.09% Cu, 12.3% Pb, 10.7% Zn; 0.44 m @ 200 gpt Ag, 0.19 gpt Au, 0.10% Cu, 6.6% Pb, 8.8% Zn; 1.77 m @ 25 gpt Ag, 4.07 gpt Au, 0.06% Cu, 0.1% Pb; 2.28 m @ 67 gpt Ag, 0.04 gpt Au, 0.02 % Cu, 3.1% Pb, 3.2% Zn; 8.72 m @ 125 gpt Ag, 0.04 gpt Au, 0.06% Cu, 2.4% Pb, 4.8% Zn; 1.05 m @ 322 gpt Ag, 0.16 gpt Au, 0.07% Cu, 9.5% Pb, 15.8% Zn. One of these high-grade intercepts is 97 m below the last mine development, while another high-grade replacement zone was identified. An unusual tourmaline breccia pipe was intersected, returning 1.77 m @ 4.07 gpt Au. “Drill results from the Quebradillas mine have enhanced our understanding and confidence that the La Parrilla Mine can be brought back online. In 2024, Silver Storm will proceed with technical studies targeting the re-establishment of mining operations in 2025.”
  • Sonoran Desert Corp. filed the NI 43-101 compliant technical report on the Cuatro Hermanos project in Sonora. The Mineoro Explorations LLC produced report states mineralization is of Porphyry Cu-Mo style associated to a porphyry intrusive complex hosted in an andesitic volcanic sequence, with Cu-Mo mineralization forming subvertical orebodies related to magmatic breccias and possibly tabular bodies of more than 3 Km along strike. Modelling suggests the Main and West zones might be connected, and that deeper drilling is needed. Recommended activities include relogging of core and RC drilling chips from the 2007-2008 campaigns, check assays on 10% of the pulps, drilling the West zone at 100 m spacing, deeper drilling, twinning of some holes, RC drilling and column leach test on the South Conglomerates (Exotic Cu target), begin metallurgical testing of oxides and sulfides, tie surface access agreements and commence permitting for drilling.

ON DEALS AND CORPORATE ISSUES

  • Coeur Mining Inc. signed a purchase agreement with Fresnillo PLC to acquire mining concessions adjacent to the Palmarejo complex in Chihuahua. The concessions comprise 2,833 ha, including the southeast extension of the Independencia and Nacion deposits, currently being mined at the Palmarejo property, and to the northeast a concession that surrounds “multiple targets containing mineralization and historic resources that were added through the 2015 acquisition of Paramount Gold and Silver. The terms of the transaction include a $10 M payment upon closing, an additional $10 M one year after closing and an additional $5 M two years after closing. The concessions will be subject to a royalty payment of $25 per Oz for each new Oz AuEq of resource discovered between 450 K and 2 M Oz AuEq.
  • Osisko Gold Royalties Ltd. announced Mr. Sean Roosen resigned as a director in order to focus on his role as CEO and Chair of the Board of Directors of Osisko Development Corp. (San Antonio, Sonora).
  • Orla Mining. Ltd. appointed Mr. Rob Krcmarov as an independent director of the company (Camino rojo, Zacatecas).

ON SOCIAL RESPONSIBILITY

  • No Relevant News.

On the image below: Quartz-specularite vein in a Sonoran Desert project. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the Fourth Week of October 2023

/ Gambusino Prospector / Leave a comment

By Jorge Cirett                                             

During the 43rd week of the year (October 23rd to October 29th, 2023), 22 companies working in Mexico posted news releases. One company reported exploration on one of its properties, five companies released Q3 2023 results and one announced new production from a recently acquired mine. One company informed on the closing of a financing round and one other the sale of more than 10% of its shares by another company.  Three companies released drilling results from their advanced projects, one on the doubling of processing capacity, one the results of an FS on its advanced property, one offered an update on construction of a new mine and another one presented a PEA on its advanced project. One company updated on the acquisition process of a property and four more on director’s appointments and results of their AGM’s. ON MEXICO ISSUES, The AIMMGM Convention in Acapulco, the biggest Mining event in Mexico held every two years, was cancelled after its opening, as the city received overnight the direct impact of a category five hurricane. ON EXPLORATION, In Sonora, Tocvan Ventures started the environmental permitting process at Pilar. ON MINING, Agnico Eagle Mines, Alamos Gold, MAG Silver, Fresnillo PLC and Newmont presented Q3 2023 production results. Impact Silver started production at the Plomosas mine in Chihuahua. ON FINANCING, Avino Silver informed Coeur Mining is to sell more than 10% of its stock. Regency Silver completed its financing round.  ON RESOURCES AND DEVELOPMENT, Vizsla Silver, Gatos Silver and Endeavour Silver reported drilling results from the Panuco, Cerro Los Gatos and Parral properties respectively. Luca Mining is expanding the Tahuehueto plant to double production. Discovery Silver presented results from a feasibility study on its Cordero project. Endeavour Silver provided a Q3 construction update on the Terronera project. GoGold Resources presented the results of a preliminary economic assessment (PEA) on its Los Ricos South project. ON DEALS AND CORPORATE ISSUES, Defiance Silver and Chesapeake Gold announced officer’s appointments. Excellon Resources rescheduled its AGM and Fabled Silver updated on the agreement to acquire the Mecatona project from Kootenay. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

ON EXPLORATION

  • Tocvan Ventures Corp. started the environmental permitting process of its Pilar project in Sonora. A detailed UAV LiDAR survey across Pilar and the newly acquired ground. The expansion area covers 21.7 square km, and the study is to provide high-resolution surface modelling.

ON MINING

  • Impact Silver Corp. announced the first production by the company at the recently acquired Plomosas mine in Chihuahua. The company did “an extensive rehabilitation and upgrade program at the site, including inside the mine, at the mill and on all associated mobile equipment and infrastructure”. The first concentrate shipment was sent to the smelter. Impact is to seek 200 tpd processing in H1/2024.
  • Agnico Eagle Mines Ltd. informed that during Q3 2023 “Minera de San Nicolás, which is jointly owned by the Company and Teck Resources Limited, continued to work on the feasibility study at San Nicolás in Zacatecas State, Mexico, and stakeholder engagement on the permitting process”. At Pinos Altos, in Chihuahua, 450 K tonnes were milled at 4,891 tpd, averaging 1.84 gpt Au, to produce 25,386 Oz Au at $1,581 per Oz Au and a total cash cost of $1,310 per Oz Au. At La India, in Sonora, 970 K tonnes were milled at 10,543 tpd, averaging 1.1 gpt Au, at a production cost of $1,271 per Oz Au and a total cash cost of $1,156 per Oz Au.
  • Alamos Gold Inc. reported financial results for the third quarter 2023. At the Mulatos district in Sonora 53,900 Oz Au were produced at mine-site cash cost $898 per Oz Au and a mine site AISC of $1,045 per Oz Au. At La Yaqui Grande open pit, 918 K tonnes of ore were mined, 5.72 M tonnes of waste moved with a waste to ore ratio of 5.0, crushing 10,300 tpd, with 948.4 K tonnes staked averaging 1.50 gpt Au, with 45,722 Oz Au staked and an average recovery rate of 84%. At the Mulatos open pit, 80.9 K tonnes of ore were mined, 130.5 K tonnes of waste moved with a waste to ore ratio of 1.61, crushing 11,800 tonnes per day, stacking 1.08 M tonnes averaging 1.55 gpt Au, to stake 53,923 Oz Au with an average recovery rate of 29%. “Production is expected to decrease in the fourth quarter reflecting the depletion of the Mulatos pit and a decrease in grades at La Yaqui Grande”.
  • MAG Silver Corp. reported Q3 2023 production from Juanicipio (56%/44% Fresnillo/MAG) in Zacatecas. “Ramp up of the Juanicipio plant continued to be the focus during the quarter with the plant reaching its target milling rate of 4,000 tonnes per day (“tpd”) in September”. During the period 322.2 K tonnes were processes, grading 1.32 gpt Au, 523 gpt Ag, to produce 9,444 Oz Au, 4.78 M Oz Ag.
  • Fresnillo Silver PLC. reported Q3 2023 production results. During the period 13.4 M OZ were produced, 0.67 M Oz from silverstream for a total of 14.1 M Oz Ag, 132,627 Oz Au, 14,575 tonnes Pb, 29,073 tonnes Zn, from the Fresnillo, Saucito, Pyrites Plant, Ciénega, San Julian Veins, San Julian DOB, Herradura, Nochebuena and Juanicipio (56%/44% Fresnillo/MAG Silver).
  • Newmont Corp. announced third quarter 2023 results, with some comments on its Mexico operations. At Peñasquito, in Zacatecas, operations were suspended by a strike that was resolved after the quarter’s end, therefore there was no Au, Ag, Pb, Zn production.

ON FINANCING

  • Avino Silver & Gold Mines Ltd. announced that Coeur Mining Inc. will offer for sale up to 14 M common shares of Avino currently held by Coeur, for gross proceeds to Coeur of approximately US$7 M. Avino will not receive any proceeds form the secondary offering (Avino, Durango).
  • Regency Silver Corp. completed the final tranche of a previously announced non-brokered private placement, raising an upsized total of CAD$1.75 M (Dios Padre, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Vizsla Silver Corp. reported results from five new drill holes at its Panuco project in Sinaloa. Recent drilling intercepted the new El Molino vein, which is 250 m from the Copala resource area, and was discovered by a hole planned to condemn the area. Highlighted true width intercepts comprise 1.65 m @ 8.37 gpt Au, 1,552 gpt Ag, 0.5% Pb, 1.2% Zn; 1.10 m @ 0.62 gpt Au, 188 gpt Ag, 0.8% Pb, 2.5% Zn; 1.7 m @ 2.25 gpt Au, 1,000 gpt Ag, 0.3% Pb, 0.5% Zn; 4.15 m @ 0.96 gpt Au, 179 gpt Ag, 0.2% Pb, 4.4% Zn. “El Molino consists of alternating bands of quartz and sulfides (sphalerite, galena and acanthite), and shows similar vein textures to those observed at Napoleon and La Luisa veins”.
  • Gatos Silver Inc. updated on exploration at the Los Gatos district in Chihuahua. Resource definition drilling on the SE Deeps zone of the Cerro Los Gatos deposit returned good results highlighting true width intervals of 2.9 m @ 0.46 gpt Au, 550 gpt Ag, 0.30% Cu, 13.7% Pb, 24.5% Zn; 5.8 m @ 0.38 gpt Au, 44 gpt Ag, 1.13% Cu, 2.7% Pb, 2.5% Zn; 2.8 m @ 0.19 gpt Au, 140 gpt Ag, 0.47% Cu, 5.6% Pb, 17.1% Zn; 2.8 m @ 457 gpt Ag, 2.13% Cu, 2.8% Pb, 0.9% Zn; 7.6 m @ 0.58 gpt Au, 148 gpt Ag, 0.73% Cu, 1.9% Pb, 1.6% Zn; 1.22 gpt Au, 207 gpt Ag, 0.74% Cu, 10.1% Pb, 3.4% Zn. On district exploration, two holes were completed at the Santa Ana target and drilling started at Portigueño, detailed mapping and rock geochemistry were completed at the San Luis, El Valle and Lince areas and the first magneto-telluric survey was completed on an area of the Rio conchos basin, near Cerro Los Gatos.
  • Endeavour Silver Corp. reported drill results from last year’s (September 2022 to September 2023) drill program at its Parral project, in Chihuahua. Highlighted true width intercepts comprise 2.33 m @ 0.11 gpt Au, 508 gpt Ag, 0.4% Pb, 1.6% Zn (including 0.43 m @ 0.13 gpt Au, 1,405 gpt Ag, 0.4% Pb, 2.2% Zn); 2.50 m @ 0.28 gpt Au, 336 gpt Ag, 1.0% Pb, 2.5% Zn (including 0.29 m @ 0.40 gpt Au, 1,760 gpt Ag, 0.7% Pb, 4.0% Zn); 9.1 m @ 0.24 gpt Au, 74 gpt Ag, 0.8% Pb, 2.6% Zn); 3.89 m @ 0.30 gpt Au, 198 gpt Ag, 2.0% Pb, 7.3% Zn. Drilling has found mineralization in the Sierra Plata, El Verde and San Joaquín areas “and the extension of San Patricio vein system. All drilling was outside of the published mineral resource estimate and results are expected to grow the resource estimate”.
  • Luca Mining Corp. announced the expansion project to double throughput at its Tahuehueto mine in Durango is progressing according to plan. “The objective is to achieve an installed capacity of 1,000 tpd by year-end and announce commercial production in first quarter of 2024”. A second ball mill is now on site, and once commissioned the milling capacity will be of 1,250 tpd, while the flotation and concentrate filtration circuits already installed can handle 1,000 tpd. A second 500 tpd tailings filter press is soon to be transported.
  • Discovery Silver Corp. presented results from its feasibility study (FS) metallurgical test program from its Cordero project in Chihuahua. Highlights from the report include: Increase Ag recoveries of up to 7% to the precious metals concentrate, significant reduction in reagent consumption, excellent metallurgical performance for oxide-sulfide blending of up to 15% oxides, “Primary grind sensitivity confirmed a coarse grind size of 200 micron passing p80 is the optimal grind size” and the need of a smaller primary crusher.
  • Endeavour Silver Corp. provided a Q3 construction update for its Terronera project in Jalisco. Overall construction progress is 38% complete with more than $95 M spent to date. “The project remains on track and on budget for initial production in Q4 2024”. Total engineering progress is 97% complete, site road access is now established, all permanent camp dormitory units to accommodate 550 personnel have been installed. Mine development is to advance on four fronts (Portal 1 to 4), “Concrete work and rebar installation continued in the SAG and ball mill grinding, coarse ore stockpile and flotation areas, and concrete work began for the primary crusher” and most long-lead major equipment is to be received before year’s end.
  • GoGold Resources Inc. filed a NI 43-101 compliant preliminary economic assessment (PEA) for its Los Ricos South project in Jalisco. The base case scenario envisages US$23.75 per Oz Ag, US$1,850 per Oz Au, an after-tax net present value (NPV 5%) of US$458 M, with an after tax IRR of 37%, an 11-year mine life to produce 47 M Oz Ag, 493 K Oz Au (or 88 M Oz AgEq). An initial capital cost of $148 M and sustaining costs of $72 M over the mine life. The average LOM production cash cost is $8.15 per Oz Ag and an AISC of $9.02 per Oz Ag, to produce 8 M Oz AgEq per year with half of the production from long hole underground mining and half from open pit mining.

ON DEALS AND CORPORATE ISSUES

  • Defiance Silver Corp. announced the appointment of George Cavey to its board of directors, replacing Dunham L. Craig (Zacatecas project, Zacatecas).
  • Chesapeake Gold Corp. announced the appointment of Jean-Paul Tsotsos as interim Chief Executive Officer (Metates, Durango).
  • Excellon Resources Inc. rescheduled its annual and special meeting to November 23, 2023 (Evolución, Durango).
  • Fabled Silver Gold Corp. updated on the agreement with Kootenay Silver Inc. to acquire the Mecatona project, in Chihuahua. “The Company is still attempting to secure the funding required in order to complete the Proposed Transaction. The Company will provide a further update on the closing of the Proposed Transaction in due course”. The company received a six-month extension by the British Columbia Register of Companies and the Exchange.
  • Orogen Royalties Inc. re-elected all of its directors on the annual general meeting (Ermitaño, Sonora).

ON SOCIAL RESPONSIBILITY

  • No relevant news.

On the image below: Bleached and goethite-stained rocks in the Sonoran Desert. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the Fourth Week of September 2023

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By Jorge Cirett                                             

During the 39th week of the year (September 25th to October 1st, 2023), only 11 companies working in Mexico posted news releases (the weekly low record is nine, since 2015). One company reported exploration on one of its properties, while no news on mining were released. Five companies informed on the opening or closing of private placements, their assistance to investor conferences and/or the amendment of credit facilities.  One company presented drilling results from one of its properties and one other an updated mineral resource estimation on one of its mines. The government cancelled nine mining concessions to one company in Sonora. One company updated on results of its annual general meeting and one other informed on modifications to streaming amendments. ON MEXICO ISSUES, the federal government is playing all tricks available on its hat to get the Sonora Lithium deposit under its control, expropriating mining concessions without calling it an expropriation, of what they see as a project with a potential large income revenue and a stepping stone on resources sovereignty. Camimex regards the cancellation infeasible while pointing that exploration expenditure has fallen 40% in recent years. A Labor Panel has been installed under T-MEC to review the US claim against Grupo Mexico in one of its mining units. ON EXPLORATION, In Chihuahua, Kootenay Silver informed four drill holes have been completed at Columba. ON MINING, no relevant news. ON FINANCING, Aztec Minerals closed the final tranche of a private placement for C$639 K, GR Silver was granted an extension for its financing placement, Regency Silver completed the first tranche of an upsized private placement.  ON RESOURCES AND DEVELOPMENT, Heliostar Metals reported drilling results from Ana Paula, in Guerrero. Guanajuato Silver presented an updated resource estimate for San Ignacio, in Guanajuato. ON DEALS AND CORPORATE ISSUES, the Mexican government cancelled nine mining concessions to Ganfeng’s Lithium in Sonora, in an unscrupulous bid to get its hands on the only defined lithium resource in Mexico. Southern Silver provided an update on results from its AGM. Bear Creek Mining presented two press releases to inform on changes on the two streaming agreements on the Mercedes mine production in Sonora. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • Camimex (Cámara Minera de México) regards the cancellation of Ganfenfg Lithium’s concessions in Sonora as not viable. Ganfeng was served in August with the cancellation notice by the government on grounds of lack of investment, which the company denies. The exploration expenditure in México has fallen close to 40% in the last seven years.
  • Ganfeng’s Lithium cancelation of claims in Sonora by the federal government will have to be dealt with in national courts, as Mexico and China do not count with a trade agreement.
  • Marath Bolaños, head of the Secretaría del Trabajo y Previsión Social (Labor Bureau) stated that the Labor Panel under the T-MEC has been formed, to review the controversy between the US government and Grupo Mexico’s San Martín mine in Zacatecas.
  • The president of Mexico indicated that its government is reviewing lithium mining concessions.

ON EXPLORATION

  • Kootenay Silver Inc. updated on drilling progress of their program at Columba, in Chihuahua. Four diamond holes have been completed of the expected 12-15 holes in the 3,000 m program. “Analyses are awaited, however visual confirmation of mineralization and veining typical of D-Vein has been reported by the logging geologists in the holes to date where modeling predicted. Veining and associated stockwork mineralization in drilled length in each hole was observed to measure approximately 5.0 m vein/ stockwork, 8.2 m vein and 23 m stockwork, 10 m vein and 26 m stockwork and 1.0 m vein, 3.0 m stockwork in holes CDH-23-136 through CDH-23-139 respectively”.

ON MINING

  • No Relevant News.

ON FINANCING

  • Aztec Minerals Corp. closed the second and final tranche of its non-brokered private placement for gross proceeds of CAD$639.1 K. Aggregate gross proceeds from both tranches are CAD$1.55 M. Alamos Gold Inc. participated in the financing with $140.6 K (Cervantes, Sonora).
  • Capstone Copper Corp. amended its existing revolving credit facility to increase the aggregate commitments from $600 M to $700 M “and extend the maturity from May 2026 to September 2027. The Amended Credit Facility will bear interest on a sliding scale of adjusted term SOFR plus a margin of 2.000% to 2.875%”. Capstone cash and cash equivalents position by the end of June 2023 was $520 M (Cozamin, Zacatecas).
  • GR Silver Mining Ltd. was granted an extension by the TSX Venture Exchange to complete its non-brokered private placement for gross proceeds of up to $1 M. A first tranche of $329 K in gross proceeds was closed on August 10, 2023 (Plomosas, Sinaloa).
  • Regency Silver Corp. completed the first tranche of a previously announced private placement, which has been upsized to C$1.75 M from C$1.5 M (Dios Padre, Sonora).
  • Vortex Metals Inc. will be participating in the 23rd Investment Conference organized by CM-Equity AG in Munich (Riqueza Marina, Oaxaca).

ON RESOURCES AND DEVELOPMENT

  • Heliostar Metals Ltd. reported drilling results from the Ana Paula project in Guerrero. These two infill holes are within the “High Grade Panel” at the deposit, and are the last that are to be included in the resource update planned for November 2023. Highlighted core length intercepts comprise 35.9 m @ 8.17 gpt Au (including (11.8 m @ 13.55 gpt Au); 83.6 m @ 8.57 gpt Au (including 63.0 m @ 10.41 gpt Au, which includes 12.0 m @ 18.36 gpt Au); 57.0 m @ 6.03 gpt Au (including 5.0 m @ 45.44 gpt Au); 14.6 m @ 32.98 gpt Au (or 18.60 gpt Au if assays cut to 100 gpt Au).
  • Guanajuato Silver Company Ltd. presented a new mineral resource estimate for its San Ignacio mine in Guanajuato. Measured and indicated resources comprise 790 K tonnes @ 123 gpt Ag, 2.10 gpt Au, containing 3.14 M Oz Ag, 53,000 Oz Au, and inferred resources of 2.17 M tonnes @ 127 gpt Ag, 2.27 gpt Au, containing 8.9 M Oz Ag, 158,000 Oz Au. “… an increase of 130% in the measured & indicated category and 283% in the inferred category.”

ON DEALS AND CORPORATE ISSUES

  • The Mexican government, through the Direccion General de Minas (DGM) cancelled nine mining concessions in Sonora to Ganfeng Lithium, including those where the largest (and so far, the only) lithium deposit in Mexico is located. The company was informed of the cancellation last August, with the government stating that the minimum investment required between 2017 and 2021 was not fulfilled and Ganfeng declaring its compliance above that limit. The company has already filed claims against the resolution at the Economy Secretariat (Secretaría de Economía). Note by editor. – This is one more issue between private capital and the Mexican government, with a president with a world vision from the 1970’s, where the State is to have a ruling fist on all economic activities, and the president a final saying on what is to be done or not.
  • Southern Silver Exploration Corp. provided a corporate update from the company’s annual meeting. During the meeting seven incumbent directors were elected and the chartered accountants reappointed. Lawrence Page, Robert Macdonald and Killian Ruby were reappointed as president, vice president exploration and chief financial officer respectively. (Cerro Las Minitas, Durango).
  • Bear Creek Mining Corp. made the final gold delivery pursuant to a gold pre-pay streaming agreement with Nomad Royalty Co. Ltd. which was assumed upon the acquisition of the Mercedes mine, in Sonora, in April 2022. As a result, over 300 additional ounces of gold produced at Mercedes per month will now be fully available for sale by the Company. A promissory with 1368445 B.C. Ltd. was amended to extend the maturity from the end of September 2023 to the end of November 2023.
  • Bear Creek Mining Corp. announced a restructuring of its current stream and debt obligations with Sandstorm Gold Ltd. to improve the Mercedes mine ability to produce free cash flow near term by reducing near-term Au and Ag stream delivery obligations and the refinancing and extensions of Bear Creek’s debt with Sandstorm. Sandstorm will refinance its US$22.5 M convertible debenture into a 5-year convertible promissory note at 7% per year and convertible into Bear Creek shares at C$0.73 per share. “Sandstorm has agreed to make up to US$8 million in additional credit” prior to the end of August 2024. Bear Creek has to complete an equity financing to raise at least CAD$9.5 M.

ON SOCIAL RESPONSIBILITY

  • No relevant news.

On the image below: Geologist Julio Carcamo on a silicified ridge in the Sonoran Desert. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the Fifth Week of August 2023

/ Gambusino Prospector / Leave a comment

By Jorge Cirett                                             

During the 35th week of the year (August 27th to September 3rd, 2023), 21 companies working in Mexico posted news releases. Five companies reported on quarterly or half year 2023 results. Five companies informed on the opening or closing of private placements, one on the payment of dividends and one more on the extension of a credit facility.  One company announced results of a PEA on its property and one other is working to process a tailings polymetallic resource. A company reported high-grade drilling results from its property and one other updated on exploration activities. One company informed on its intention to acquire a porphyry copper project in Sonora, while one other updated on projects in several countries and its plans for Mexico. One royalty company informed on the indirect acquisition of an NSR from a mine in Mexico. ON MEXICO ISSUES, Xótchil Gálvez, pointed that the Mining Fund should return to mining communities. ON EXPLORATION, no relevant news. ON MINING, Impact Silver, Bear Creek Mining and Minera Alamos reported financial results for Q2 2023, and Mundoro reported first half 2023 results. ON FINANCING, Aztec Minerals (C$911.6 K), Colibri Resource, Regency Silver (C$1.5 M), Sonoro Gold (C$259.2 K) and Commander Resources ($ 346 K) informed on the opening or closing of financing rounds. Orla Mining extended its credit facility to up to $200 M and four years. Alamos Gold declared a quarterly dividend. ON RESOURCES AND DEVELOPMENT, Sonoro Gold announced a positive PEA on Cerro Caliche, Sonora. Luca Mining informed on evaluation plans to reprocess tailings at Campo Morado, Guerrero. Bear Creek Mining provided underground drilling results from Mercedes, in Sonora. Discovery Silver submitted the environmental impact assessment (MIA) for Cordero, in Chihuahua. Mammoth Resources provided an update on exploration activities at Tenoriba, in Chihuahua. ON DEALS AND CORPORATE ISSUES, Southern Empire Resources entered into an agreement with Cuprum Mining, upon which Southern can acquire 100% interest in the Suaqui Verde porphyry copper project in Sonora. Excellon Resources provided an update on its projects in different countries, including Mexico. Gold Royalty completed the acquisition of a 1.0% NSR on portions of the Cozamin mine production in Zacatecas. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • Xóchitl Gálvez, opposition senator and likely to turn into a strong presidential candidate, points that the Mining Fund should return to mining communities. The fund was created for mining to contribute to the development of the communities where the work is realized, but was funneled into a broader basket to source pensions and scholarships with electoral aims by the current president.

ON EXPLORATION

  • No Relevant News.

ON MINING

  • Impact Silver Corp. announced financial results for the second quarter 2023, reporting revenue of $5.5 M. The average mill feed at Zacualpan, in Estado de Mexico, was 163 gpt Ag, where 35.7 K tonnes were processed to produce 155.7 K Oz Ag. During the quarter Impact closed the acquisition of the Plomosas mine in Chihuahua, where a major rehabilitation program was initiated. The company completed a $9.0 M non-brokered private placement, maintains a cash balance of $13.3 M and no long-term debt.
  • Orogen Royalties Inc. reported financial results for the second quarter of 2023, including some figures on its royalties from Mexican operations. The company holds a 2.0% net smelter return (NSR) royalty on the production of First Majestic’s Ermitaño mine in Sonora. Orogen’s share of production on the quarter was $1.18 M consisting on 435 Oz AuEq, resulting from the process of 213.9 K tonnes @ 3.12 gpt Au, 39 gpt Ag, which produced 20,073 Oz Au, 142 K Oz Ag.
  • Bear Creek Mining Corp. reported its financial results for Q2 2023. During the period, 121.5 K tonnes were mined at its Mercedes mine in Sonora, 125.1 K tonnes were processed @ 2.42 gpt Au, recovering 94.53% Au to produce 9,212 Oz Au, 39,827 Oz Ag, or 10,132 Oz AuEq at cash cost $1,337 per Oz AuEq and an AISC of $1,646 per Oz AuEq. “The Mercedes mine has been inconsistent in achieving the anticipated gold grades projected in the mine plans and geological models the Company inherited upon its acquisition of Mercedes in April 2022”. Mining costs have declined by 23% in recent months and are expected to continue to reduce in the coming months due to changes in mining methods. Higher grades are to be mined from areas close to current production.
  • Minera Alamos Inc. provided an operation update for Q2 2023 and some guidance on its operations on Q3. Strip ratios were maintained below 2:1 waste vs mineralized material during mining operations, with 25% of material averaging 1.06 gpt Au being crushed and 75% of material averaging 0.43 gpt Au being sent directly to the leach pads, for an average grade of 0.59 gpt Au in the leach pads. The company expects that the precipitation levels in 2023 will allow more normal mining and production plans. Overall pad capacity is to triple if constructive communications with SEMARNAT (Environmental regulator) are fruitful. A maiden resource estimate is expected in Q3, covering the primary mineralized zones surrounding the Nicho operations. Alamos had cash and cash equivalents of $8.27 M by the end of the period. Subsequent to quarter’s end, $2.57 M ($33.2 M pesos) of VAT were returned to the company by the Mexican revenue service (SAT).
  • Mundoro Capital Inc. reported financial results for the first half of 2023. In H1 2023 the company generated $1.46 M in fees and payments. At the end of the period Mundoro held $8.4 M in cash and cash equivalents (Camargo, Chihuahua).

ON FINANCING

  • Aztec Minerals Corp. closed the first tranche of its non-brokered private placement for gross proceeds of CAD$911.6 K. “Due to investor interest in the private placement, Aztec intends to increase the financing from the original stated amount of up to CAD$1 million to up to CAD$1.2 million” (Cervantes, Sonora).
  • Orla Mining Ltd. amended its existing US$150 M credit facility with the Bank of Nova Scotia, Bank of Montreal and Canadian Imperial Bank of Commerce. The facility stays at US$150 M, with the ability to increase to US$200 M, with a 4-year term (increasing it by two years) and an interest rate will be based on the term SOFR rate, plus an applicable margin ranging from 2.50% to 3.75% based on the company’s leverage ratio at the end of each fiscal quarter. “The Amended Credit Facility is payable in full at maturity and removes quarterly mandatory repayments required under the previous term facility” (Camino Rojo Oxides, Zacatecas).
  • Colibri Resource Corp. announced an extension to complete its previously announced non-brokered private placement by September 13, 2023. “The Company is offering up to 1,000 units, each unit being comprised of: (i) a US$1,000 principal amount of 10% unsecured convertible debenture (a “Debenture”) with a maturity date (“Maturity Date”) of 2 years from the date of issuance; and (ii) 5,416 common share purchase warrants of the Company …” (Evelyn, Sonora).
  • Regency Silver Corp. will be present at the 2023 Precious Metals Summit in Beaver Creek, Colorado. Regency has arranged a non-brokered private placement of up to CAD$1.5 M in gross proceeds (Dios Padre, Sonora).
  • Alamos Gold Inc. declared a quarterly dividend of US$0.025 per common share (Mulatos, Sonora).
  • Commander Resources Ltd. closed the non-brokered private placement announced on August 3, 2023, for total gross proceeds of $346 K (Pedro, Durango).
  • Sonoro Gold Corp. closed the final tranche of its previously announced non-brokered private placement for additional gross proceeds of C$259.2 K, accruing a total of C$2.26 M (Cerro Caliche, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Sonoro Gold Corp. announced a positive preliminary economic assessment (PEA) for its Cerro Caliche project in Sonora. The scope is for nine years life of mine (LOM) 33,000 Oz AuEq per year operation to obtain 297,575 Oz AuEq on recoveries of 72% Au, 27% Ag, with a pre-Tax net present value (NPV) of US$71.4 M, a pre-Tax internal rate of return (IRR) of 59% and after-Tax NPV (at 5%) of US$47.7 M with an IRR of 45%. An initial CAPEX cost of US$15.5 M and sustaining capital of US$15.5 M are envisaged, to produce at cash cost US$1,295 per Oz AuEq and an AISC of US$1,395 per Oz AuEq with a payback period of 2.9 years.
  • Luca Mining Corp. announced the signing of a memorandum of understanding with EnviroGold Global Ltd. to process the tailings at Luca’s Campo Morado Mine in Guerrero. The scope of the project is to evaluate the reprocessing of 3.29 M tonnes @ 1.32% Zn, 0.3% Cu, 0.49% Pb, 1.57 gpt Au, 94 gpt Ag, and produce a PEA for the project. On a 2021 initial testwork with EnviroGold’s, a gold recovery of 60% was achieved. The aim of the project is to increase this gold recovery rate to levels reached by EnviroGold on the Hellyer project in Australia (also a volcanogenic massive sulfide deposit, as Campo Morado), where it achieved recoveries of 90% Au, 90% Ag by leach, and 91% Cu and 82% Zn reported to a pregnant solution suitable for subsequent recovery.
  • Bear Creek Mining Corp. provided results from underground definition and delineation drilling at its Mercedes mine in Sonora. “The Company has focused drilling on the Marianas, Rey de Oro, Diluvio and Lupita deposits, all of which are associated with near-term production; however, the results also hold significant implications for exploration upside”. Highlighted true width intercepts comprise 1.0 m @ 47.90 gpt Au, 39 gpt Ag; 5.2 m @ 62.59 gpt Au, 93 gpt Ag; 4.3 m @ 7.55 gpt Au, 28 gpt Ag; 4.4 m @ 3.53 gpt Au, 10 gpt Ag; 2.1 m @ 18.41 gpt Au, 11 gpt Ag in the Marianas zone, 1.4 m @ 21.00 gpt Au, 11 gpt Ag; 4.9 m @ 3.52 gpt Au, 53 gpt Ag; 0.9 m @ 29.30 gpt Au, 63 gpt Ag; 4.2 m @ 4.56 gpt Au, 71 gpt Ag in the Rey de Oro Zone, 0.8 m @ 22.4 gpt Au, 127 gpt Ag in the Diluvio zone and 3.4 m @ 5.46 gpt Au, 95 gpt Ag in the Lupita zone. Highlighted core-length intervals from the Diluvio zone comprise 6.7 m @ 3.24 gpt Au, 63 gpt Ag; 14.3 m @ 4.11 gpt Au, 54 gpt Ag; 6.1 m @ 3.54 gpt Au, 63 gpt Ag; 6.5 m @ 5.51 gpt Au, 45 gpt Ag; 5.1 m @ 7.11 gpt Au, 78 gpt Ag; 1.5 m @ 9.23 gpt Au, 34 gpt Ag.
  • Discovery Silver Corp. submitted for evaluation the environmental impact assessment (Manifestación de Impacto Ambiental, or MIA) for its Cordero project in Chihuahua. “The MIA is one of the principal permits required for the development of Cordero and encapsulates extensive social and environmental work programs completed by the Company’s team in Mexico since 2020 in parallel with multiple reviews by third-party consultants.”
  • Mammoth Resources Corp. provided an update on ongoing exploration activities at its Tenoriba property in Chihuahua. The objective is to evaluate how to produce a resource estimation and define the processes through which the precious metals can be recovered. These activities include: (1) metallurgical testing of oxide material from the 1.5 km by 0.5 km Carneritos area. Preliminary metallurgical tests have already been performed on material from the Masuparia area; (2) analysis of all geological information, including drill data, by an independent mineral resource modelling expert aiming for the distribution of drill holes required to produce a maiden NI 43-101 mineral resource; and (3) defining future drill hole locations upon which to achieve this mineral resource.

ON DEALS AND CORPORATE ISSUES             

  • Southern Empire Resources Corp. entered into an agreement with Cuprum Mining Corp. to acquire up to 100% in the share capital of Cuprum, and thereby on the Suaqui Verde copper project in Sonora. Southern can acquire 10% of Cuprum by paying C$500 K within 90 days and issuing 7.5 M shares of Southern to Cuprum shareholders. Another 10% can be acquired by paying C$250 K to Cuprum, issuing 7.5 M shares and incurring in C$750 K on exploration expenditures on or before 15 months of closing. An additional 10% can be acquired by paying $500 K and incurring in additional C$750 K in exploration on or before 30 months from closing. Additional 20% can be acquired by Southern by paying C$500 K and incurring additional C$750 K within 45 months of closing. Southern Empire can acquire an additional 50% in Cuprum by paying C$750 K and incurring in additional C$1 M (total of C$3.25 M) on or before 60 months of closing. A 2% NSR “may be payable” subsequent to commercial production. The project encompasses 1,952 hectares with oxide and secondarily enriched copper sulfide mineralization on a porphyry copper system. A resource defined with 106 historical RC and diamond holes contains 51.2 M tonnes @ 0.31% Cu in the indicated category.
  • Excellon Resources Inc. provided an update on its projects in USA, Germany and Mexico. “As the Platosa Mine was placed on care and maintenance in earlyQ4 2022, the Company is assessing its strategic options, including the potential sale of select properties or complete divestiture of the Mexico operations. The Company will provide further updates on the Mexico operations as necessary.” (Platosa, Durango).
  • Silver Tiger Metals Inc. announced the appointment of Francisco Albelais as Vice-President of Operations and Mr. Charles Spath as Vice-President of Technical Services. (El Tigre, Sonora).
  • Gold Royalty Corp. has completed the indirect acquisition of a 1.0% net smelter return (NSR) royalty on portions of the Cozamin Cu-Ag mine in Zacatecas, from Endeavour Silver Corp. Pursuant to the transaction, Gold Royalty indirectly acquired the royalty for US$7.5 M in cash consideration.

ON SOCIAL RESPONSIBILITY

  • No relevant news.

On the image below: Silicified structure ridge on a project in the Sonoran Desert. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the Fifth Week of March 2023

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By Jorge Cirett                                             

During the 13th week of the year (March 27th to April 2nd, 2023), 18 companies working in Mexico released news on their properties. Two companies informed on exploration on their properties, three companies informed on Q4 and year 2022 financial and operational results. Two companies closed partial or complete share placements. Two companies filed technical reports on their properties, two more released drilling results on their advanced properties and two more updated mineral resource estimates for their properties. Two companies announced the completion of the acquisition process on mining projects. ON MEXICO ISSUES, the Mexican president sent an initiative to change the Mining Law that is likely to strongly impact the mineral exploration industry. ON EXPLORATION, In Sonora, Tocvan Ventures provided an update on bulk sampling at its Pilar property; Reyna Gold is to drill its La Gloria project. ON MINING, Mag Silver, Sierra Metals and Avino Silver released Q4 2022 financial reports. ON FINANCING, Silver Spruce closed a private placement for $1.13 M, Golden Tag closed the first tranche of a non-brokered private placement. ON RESOURCES AND DEVELOPMENT, Alamos Gold and Sonoro Gold filed NI-43-101 technical reports on the Mulatos and Cerro Caliche properties respectively, both in Sonora. GoGold Resources released drilling results from Los Ricos South project in Jalisco. Oroco Resource informed on drilling at the Santo Tomás project in Sinaloa. Argonaut Gold updated on mineral resources at five of its properties in Mexico. Aura Minerals reported on mineral reserves and resources at Aranzazu, in Zacatecas. ON DEALS AND CORPORATE ISSUES, Argonaut Gold completed the sale of the Ana Paula project in Guerrero to Heliostar Metals. Sierra Metals completed the acquisition of La Guitarra project, in Estado de Mexico, from First Majestic Silver. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • The president of México, Andrés M. López Obrador sent to Congress an initiative to reform the Mining Law, National Water Law, Ecological Equilibrium Law and Environmental Protection and the General Law for Prevention and Integral Management of Residues relating to Mining and Water Concessions. The initiative displays a heavy ideological charge on the exposition of motifs, full of propaganda epithets against the “neoliberal” current state of affairs on these matters. Any good specific proposal within the initiative is overwhelmed by the sheer amount of new rules designed for the State to have a firm grip on the industry, many of which involve granting the government power to decide when to take away a concession on flimsy grounds, raising the uncertainty level for mining investment in Mexico. Some takeaway points that drastically change how the mining industry is operating in Mexico include: The government is to perform auctions for mining concessions (no more staking). Mining activities are no longer considered to have priority over other land uses. No land expropriation on mining grounds. Social impact studies to be conducted before any exploration takes place. Public consultations with “towns”, indigenous (which by the way are auto ascribed) and afro-Mexican communities. Reduction of mining concessions rights from 50 to 15 years, that could be renewed only once (more than a few operations in Mexico have been continuous for far longer periods). Mining concessions are conditioned to water “availability” (yes, the government decides, unconstrained, when there is available water, anytime). No private transmission of mining concessions without government consent (again, absolute power to the government). Added cancellation causes include lack of report in possible harm or risks to ecological equilibrium, lack of permits, concessions or authorizations from other authorities and lack of closing programs or management of residues. The only way to obtain a concession is to be by government auction (Concurso). Limits mining concessions coverage to only one element (you have to wonder on the genius that came with this proposal). The list continues, but in a first pass reading those above come as the most likely to cause an exodus of investment in mining exploration in Mexico. Mines are to continue operating, and advanced properties are likely to continue to development, but the Mexican exploration industry is about to halt when this initiative is approved, as the government has the required number of votes secured in Congress. Dialogue between industry entities and the government should take place before this initiative is voted, because better alternatives should be sought in order to achieve a better operating mining industry. Alternative options agreed upon should both improve the effect of mining operations in communities and the environment while promoting investment, thus helping Mexico’s development as a whole.         

ON EXPLORATION

  • Tocvan Ventures Corp. provided a progress update on the first bulk sample at the Pilar project in Sonora. Over 1,200 tonnes of material have been stockpiled with the first shipments completed. Four head-grade samples averaged 6.2, 7.6, 1.3 and 7.6 gpt Au. “Diagnostic leach tests are ongoing and were collected from four trench areas and one select drill core coarse reject sample. Preliminary results from the study suggest free gold is present in the samples and has been confirmed visually by testing sieved…. Up to 1,000 tonnes of oxide-gold material will be extracted from select areas….. The information provided from the sample will be used for planning in coordination for permitting of full-scale mine and process facilities on-site at Pilar”.
  • Reyna Gold Corp. announced the mobilization to recommence a minimum of 5,500 m of diamond drilling at its 24,215 ha La Gloria property in Sonora. The program is focused on four targets: La Republicana, Western, Las Carmelitas and Main Zone. At La Republicana drilling “will test extensions to the La Republicana Main Vein, which produced 59.00m of 1.45 g/t Gold in Phase 1 drilling”, on the 1 km long vein with significant anomalies delineated by an induced polarization survey. At Western, abundant quartz veining with Au-Te high-grades are to be tested. At Las Carmelitas high Cu, Ag, Sb assays have been obtained in a large conglomerate/agglomerate system. At the Main Zone, follow-up is to test on phase-1 drilling that returned 5.5 m @ 935 gpt Ag; 7.85 m @ 3.94 gpt Au; 30.60 m @ 0.51 gpt Au.

ON MINING

  • Mag Silver Corp. announced consolidated financial results for 2022. Commissioning of the Juanicipio plant in Zacatecas commenced in early January 2023, after the entire system was connected to the national power grid in late December 2022. During the year 646.1 K tonnes were processed thorough the Fresnillo and Saucito plants, producing 8.7 M Oz Ag, 20,268 Oz Au, 4,487 tonnes Pb, 6,758 tonnes Zn, netting $132.8 M in gross profit by Juanicipio (56% Fresnillo PLC, 44% Mag Silver).  At the end of 2022 Mag Silver had 29.2 M of working capital, with no long-term debt. The company closed a $42.6 M bought deal public offering on February 2023.
  • Sierra Metals Inc. presented Q4 and year-end 2022 consolidated financial results. The company has operations in Chihuahua and Peru, but no production details by unit were presented. Sierra Metals obtained $46.2 M in revenue during the year, with an adjusted EBITDA of $13 M, a net loss of $88.3 M. The company had cash and cash equivalents of $5.1 M and negative working capital of $84.4 M. For 2023 the production guidance at Bolivar, in Chihuahua, envisions a production of 34.5 – 39.5 M Lb CuEq at cash cost $2.99 per Lb CuEq and an AISC of $5.07 per Lb CuEq. At Cusi, in Chihuahua, an undisclosed amount of silver ounces was produced at cash cost $16.77 per Oz AgEq and an AISC of $23.17 per Oz AgEq.
  • Avino Silver & Gold Mines Ltd. released consolidated financial results for Q4 and year-end 2022. During the year, the Avino mine in Durango milled 541.8 K tonnes to produce 985 K Oz Ag, 5,778 Oz Au, 6.5 M Lb Cu (or 2.65 M Oz AgEq), at cash cost $10.34 per Oz AgEq and an AISC of $17.91 per Oz AgEq. In the year the company had revenue of $44.2 M, ending the period with a $11.2 M cash balance and $8.8 M in working capital.

ON FINANCING

  • Silver Spruce Resources Inc. closed a private placement for $1.13 M in proceeds (Diamante, Sonora).
  • Golden Tag Resources Ltd. closed the first tranche of the previously announced non-brokered private placement, aiming to raise $5.7 M in aggregate gross proceeds (Don Diego and La Parrilla, Durango).

ON RESOURCES AND DEVELOPMENT

  • Alamos Gold Inc. announced the filing of a NI43-101 compliant technical report for its Mulatos property in Sonora.
  • Sonoro Gold Corp. reported the filing of a NI-43-101 compliant technical report on the mineral resource estimate at its Cerro Caliche project in Sonora. The report includes indicated resources of 19.9 M tonnes @ 0.44 gpt Au, 3.5 gpt Ag, containing 280 K Oz Au, 2.2 M Oz Ag, and inferred resources of 10.5 M tonnes @ 0.42 gpt Au, 4 gpt Ag, containing 140 K Oz Au, 1.3 M Oz Ag. The resources are amenable to a combination of open pit and heap leach extraction.
  • GoGold Resources Inc. announced drilling results from the Eagle and Main deposits at its Los Ricos South project in Jalisco. Highlighted core length intervals comprise 23.3 m @ 7.07 gpt Au, 86 gpt Ag (including 2.7 m @ 45.01 gpt Au, 106 gpt Ag); 39.9 m @ 1.28 gpt Au, 87 gpt Ag; 16.3 m @ 1.09 gpt Au, 28 gpt Ag; 18.2 m @ 1.72 gpt Au, 118 gpt Ag; 13.9 m @ 3.63 gpt Au, 144 gpt Ag. “The purpose of the program is to better define the very high-grade portions of the current deposit that may be amenable to bulk underground mining. The Company is carrying out a trade-off study to better define what portion of the deposit could be mined in a lower strip ratio pit and what portion would best be mined in more selective bulk underground mining”.
  • Oroco Resource Corp. released results from drilling at the South Zone of the Santo Tomás project in Sinaloa. Highlighted core length intervals estimated to be within 10% of true width comprise 221.7 m @ 0.023 gpt Au, 2 gpt Ag, 0.37% Cu; 145.0 m @ 0.008 gpt Au, 2 gpt Ag, 0.25% Cu; 89.0 m @ 0.011 gpt Au, 2 gpt Ag, 0.31% Cu (including 25.0 m @ 0.020 gpt Au, 4 gpt Ag, 0.74% Cu); 81.0 m @ 0.011 gpt Au, 1 gpt Ag, 0.20% Cu. “Historical drilling, surface geological mapping, and the Dias Geo 3D Induced Polarization survey have defined near-surface mineralization projected to 400 m below the surface along 2,000 m of strike length in the South Zone”.
  • Argonaut Gold Inc. updated its mineral resources to the end of 2022, including figures from its Mexican properties. The following table shows the resources on its Mexican properties, which at the end of 2022 comprised proven and probable reserves of 2.3 M Oz Au, 51.7 M Oz Ag, 86 K tonnes Cu, 5.6 M Oz Au, 94.9 Oz Ag, 187 K tonnes Cu in measures and indicated resources and 603 K Oz Au, 17.1 M Oz Ag, 5 K tonnes Cu in inferred resources.
  • Aura Minerals Inc. reported updated mineral reserves and resources for its operating mines, including from its Aranzazu mine in Zacatecas, to the end of 2022. Proven and probable mineral reserves stand at 9.6 M tonnes @ 0.81 gpt Au, 17.61 gpt Ag, 1.23% Cu, containing 249 K Oz Au, 5 M Oz Ag, 259 M Lb Cu. Measured and indicated resources comprise 15.1 M tonnes @ 0.97 gpt Au, 21.15 gpt Ag, 1.44% Cu, containing 471 K Oz Au, 10.4 M Oz Ag, 477.3 M Lb Cu. Inferred resources stood at 4.3 M tonnes @ 0.55 gpt Au, 16.37 gpt Ag, 1.04% Cu, containing 76 K Oz Au, 2.3 M Oz Ag, 99 M Lb Cu.

ON DEALS AND CORPORATE ISSUES             

  • Argonaut Gold Inc. announced the completion of the sale of the Ana Paula project in Guerrero to Heliostar Metals Ltd. The deal involved US$10 M in cash upon closing and US$20 M in deferred cash and share considerations. The project has 1 M Oz Au @ 2.36 gpt Au in proven and probable mineral reserves, is permitted for an open pit and potential for underground mining, with 142,000 m of drilling in 333 holes.
  • Sierra Madre Gold and Silver Ltd. announced the completion of the acquisition of the La Guitarra property in Estado de Mexico. Sierra Madre issued to First Majestic Silver Corp. 69 M shares for it to maintain a 19.9% interest on Sierra Madre, shares that are to be released by an escrow on four equal installments between September 2023 and March 2025. The company opened a brokered private placement on September 2022, intending to raise up to $10 M. The common shares are halted from trading, and are expected to resume trading following the closing of the common share offering.  

ON SOCIAL RESPONSIBILITY

  • Avino Silver & Gold Mines received for the first time in 2022 the ESR (Empresa socialmente responsible) award “granted by the Mexican Center for Philanthropy (El Centro Mexicano para la Filantropia or Cemefi, and the Alliance for Corporate Social Responsibility (Alianza por la Responsabilidad Social Empresarial or (AliaRSE))”.

On the image below: Porphyritic felsic dike on a project in the Sonoran Desert. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the Third Week of February 2023

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By Jorge Cirett

During the 7th week of the year (February 13th to February 19th, 2023), 13 companies working in Mexico released news on their properties. One company informed on a new exploration model for its projects. Two companies informed on Q4 2022 production and 2023 guidance. One company closed a first tranche on a financing round, while one other closed the previously announced private placement and one more granted shares and stock options to board members. One company filed a PFS on its project and one more updated on the resource estimate for one of its properties. Two companies informed on drilling results and work on their advanced properties. Two companies informed they have earned 50% interest in a project, and one other received notice of claims totaling US$19.7 M. ON MEXICO ISSUES, The Mexican president continues to assert his power by claiming that all lithium reserves will pass to a government’s company. The Sonora State Economy Secretary vigorously backed the importance of the mining industry in the State. ON EXPLORATION, in Coahuila, Southern Empire Resources claims mineralization at its properties in Durango might be of Carlin style. ON MINING, Gold Resource and Capstone Copper released Q4 2022 production or/and financial production reports and guidance for 2023. ON FINANCING, Reyna Silver closed the first tranche of its private placement (C$5 M), Mag Silver completed its bought deal private placement (C$23 M) and Orogen Royalties granted shares and stock options to independent board members. ON RESOURCES AND DEVELOPMENT, Discovery Silver filed the PFS on the Cordero project in Chihuahua. Vizsla Silver reported drilling results at Panuco, in Sinaloa. Avino Silver updated the mineral resource estimate for all deposits at its Avino property in Durango. Impact Silver released drilling results from the Aurora 2 zone at its Capire project in Guerrero. ON DEALS AND CORPORATE ISSUES, Silver Spruce Resources and Colibri Resource earned 50% ownership in the Diamante property in Sonora. Magna Gold received notices on claims totaling $19.7 M. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • The Mexican president, Andrés M. López Obrador announced on one of its daily propaganda conferences: “I am to sign the decree to forward the lithium concession, all the reserves, to the Energy Secretariat”. In April 2022 the government declared lithium as a public utility mineral, and its exploitation to be only possible under the public enterprise Litio para México.
  • Margarita Vélez Rocha, the Sonora Economy Secretary, recognized the importance of the mining sector in the State, pointing that it directly employs more than 26 thousand workers and more than 120 thousand indirectly, with 39 municipalities having mining activities and 23 on which it is the main economic activity.

ON EXPLORATION

  • Southern Empire Resources Corp. announced that synchrotron radiation micro-X-ray fluorescence mineralogical studies of drill core samples from its Pedro project in Durango reveal mineralogical similarities to deposits of the Carlin belt in Nevada. Gold mineralization at Centauro and Pedro projects, both in Durango, is associated to hematite-stained, weak to moderately silicified brecciated conglomerate of the Eocene to Oligocene Ahuichila Formation. Historic drilling results include intervals like 5.60 m @ 0.59 gpt Au; 19.82 m @ 0.31 gpt Au; 15.23 m @ 0.58 gpt Au; 50 m @ 0.28 gpt Au; 88.10 m @ 0.24 gpt Au; 112.40 m @ 0.12 gpt Au, with anomalous Ag, As, Sb Tl and Hg.

ON MINING

  • Gold Resource Corp. issued 2023 guidance and suspension of dividends. For 2023 the company expects to produce 17 to 19 K Oz Au, 0.9 to 1.0 M Oz Ag (or 30 to 32 K Oz AuEq) at cash cost $1,000 to $1,050 per AuEq Oz and an AISC of $1,250 to $1,350 per AuEq Oz (Consolidated: $1,650 to $1,750 per AuEq Oz). “the lower grade profile is expected to continue through 2023 and is projected to negatively impact operating cash flows and total cash costs per gold equivalent ounce”, and accordingly “will suspend the quarterly dividend until such time that it may become practicable to reinstate” (Don David, Oaxaca).
  • Capstone Copper Corp. reported financial results for Q4 2022 and year 2022, including figures from its Mexican operations. At Cozamin, in Zacatecas, 3,430 tpd were milled during the quarter to produce 5.8 K tonnes of copper, totaling 24.5 K tonnes Cu on the year at cash cost $1.40 per Lb Cu (which is the lowest cost for Capstone operations). Cash and cash equivalents stood at $170.3 M by the end of the period.

ON FINANCING

  • Reyna Silver Corp. announced the closing of the first tranche of its bought deal private placement for gross proceeds of C$5 M (Guigui and Batopilas, Chihuahua).
  • Mag Silver Corp. completed the previously announced bought deal private placement for aggregate gross proceeds of C$23 M (Juanicipio (44%), Zacatecas).
  • Orogen Royalties Inc. authorized the granting of 156 K restricted share units, 156 K deferred share units and 238 K stock options to independent board members (Royalties on Ermitaño, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Discovery Silver Corp. filed the pre-feasibility study (PFS) on its Cordero property in Chihuahua.
  • Vizsla Silver Corp. reported results from 19 holes on the Copala structure of the Panuco project in Sinaloa. The results represent step-out and infill drilling on the Copala structure that has now been traced for 1,110 m of strike and 400 m downdip. Highlighted true width intervals comprise 2.50 m @ 1,673 gpt Ag, 5.39 gpt Au; 3.35 m @ 428 gpt Ag, 3.64 gpt Au; 2.40 m @ 288 gpt Ag, 1.73 gpt Au; 13.70 m @ 270 gpt Ag, 1.48 gpt Au; 6.00 m @ 648 gpt Ag, 4.29 gpt Au; 3.00 m @ 247 gpt Ag, 2.17 gpt Au; 2.90 m @ 1,010 gpt Ag, 5.91 gpt Au; 6.20 m @ 242 gpt Ag, 1.15 gpt Au; 4.61 m @ 453 gpt Ag, 9.16 gpt Au; 6.00 m @ 176 gpt Ag, 1.12 gpt Au.
  • Avino Silver & Gold Mines Ltd. completed an updated mineral resource estimate for the Avino ET, San Gonzalo, La Potosina, Guadalupe and Oxide Tailing deposits at its Avino property in Durango. Measured and indicated resources comprise 34.7 M tonnes @ 63 gpt Ag, 0.54 gpt Au, 0.39% Cu (or 144 gpt AgEq) containing 70.0 M Oz Ag, 596.6 K Oz Au, 301.4 M Lb Cu. Inferred resources stand at 19.3 M tonnes @ 46 gpt Ag, 0.34 gpt Au, 0.37% Cu (112 gpt AgEq) containing 28.4 M Oz Ag, 212.6 K Oz Au, 158.5 M Lb Cu. Another nearby property, La Preciosa, is also held by Avino and contains 98.6 M Oz Ag, 189.2 K Oz Au in indicated resources and 21.3 M Oz Ag, 35.5 K Oz Au in inferred resources.
  • Impact Silver Corp. announced drill results from the Aurora 2 zone, 1.3 km northeast of the Capire processing plant (in Guerrero), and 16 km south of the company’s active mining operations at the Royal Mines of Zacualpan in Estado de Mexico. The mineralization at the site consists of volcanogenic massive sulfides (VMS) lenses, extending the zone to the west. Highlighted true width intervals comprise 2.39 m @ 106 gpt Ag, 0.42 gpt Au, 0.3% Pb, 0.8% Zn; 3.73 m @ 66 gpt Ag, 0.40 gpt Au, 0.2% Pb, 0.5% Zn; 7.48 m @ 128 gpt Ag, 0.42 gpt Au, 0.8% Pb, 1.8% Zn; 1.01 m @ 138 gpt Ag, 0.49 gpt Ag, 0.5% Pb, 1.1% Zn; 7.95 m @ 63 gpt Ag, 0.52 gpt Au, 0.9% Pb, 2.8% Zn; 2.11 m @ 51 gpt Ag, 0.15 gpt Au, 0.5% Pb, 1.9% Zn; 2.38 m @ 142 gpt Ag, 0.37 gpt Au, 0.2% Pb, 0.5% Zn; 3.28 m @ 34 gpt Ag, 0.24 gpt Au, 0.4% Pb, 1.2% Zn.   

ON DEALS AND CORPORATE ISSUES

  • Silver Spruce Resources Inc. and Colibri Resource Corp. reported the companies have earned 50% ownership interest in the Diamante project in Sonora, while Vendor Bimsa Minera SA de CV retains 50% ownership in the Property. “The 1,057-hectare Diamante property is located adjacent to the Jackie property, a joint venture with Colibri, which covers 1,113 hectares, providing the company with a total of 2,170 hectares of exploration ground. Diamante hosts a number of historical showings and combined with mineralization on the Mezquite and Jackie properties exhibit the geological characteristics of epithermal low to intermediate sulfidation Ag-Au (Pb-Zn)”. With completion of the initial earn-in, Silver Spruce and Colibri together will become equal joint venture partners with the Vendor in BIMCOL Minera, with a six months exclusive period to purchase the remaining 50% by paying either US$2.1 M or US$1.45 M and 2% NSR.
  • Magna Gold Corp. informed the receipt of notices of claims from three of its creditors, Cominivi Servicios S.A. de C.V., Covoro Mining Solutions Mexicana S. de R. L. de C.V. and Sidney W. French S.A. de C.V. for US$6.49 M. Also, a notice of commencement of arbitration with Peal México, S.A. de C.V. was received on a claim of US$13.2 M (San Francisco, Sonora).

ON SOCIAL RESPONSIBILITY

  • No Relevant News.

On the image below: Quartz specularite veining cut by late quartz veinlet on a copper project in the Sonoran Desert. Picture by Abraham López.

The Mining and Exploration News in Mexico: Highlights on the Second Week of December 2022

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By Jorge Cirett

During the 49th week of the year (December 5th to December 11th, 2022), 15 companies working in Mexico released news on their properties. Two companies posted exploration updates on their properties, two more companies informed on private placements, while one signed a concentrate pre-payment facility and two companies updated on work at its advanced properties. On a busy week for deals, four companies announced agreements on the purchase of five properties.  ON MEXICO ISSUES, a tit for tat of declarations between the Secretaría de Economía and Camimex reflected the state of affairs between the government and the mining industry for the last four years. ON EXPLORATION, in Sonora, Colibri Resource recommenced drilling at Evelyn. In Jalisco, Almadex Minerals released drilling results at San Pedro. ON MINING, no relevant news. ON FINANCING, Prismo Metals and Silver Viper informed on their private placements for $3 M and $335 K respectively. Guanajuato Silver Company informed on a new $5 M concentrate pre-payment facility. ON RESOURCES AND DEVELOPMENT, Torex Gold released drilling results from El Limón Sur Deep drilling, including the highest grade-m interval for Mexico so far in the year. Endeavour Silver released a new resource estimate for its La Pitarrilla project in Durango. ON DEALS AND CORPORATE ISSUES, Argonaut Gold and Heliostar Metals signed agreements for the purchase of the Ana Paula and San Antonio projects, in Guerrero and Baja California Sur respectively. Prime Meridian Resources optioned the Chuin project in Sonora from private vendors. Capitan Mining optioned from Fresnillo PLC a mining concession adjacent and in projection of mineralization at its Cruz de Piedra project in Durango. Golden Tag Resources is to acquire First Majestic Silver’s La Parrilla project in Durango. ON SOCIAL RESPONSIBILITY, one company informed on the receipt of an award in environmental and sustainability compliance.

ON MEXICO ISSUES

  • According to IMSS (Instituto Mexicano del Seguro Social) there are 421,833 mining industry direct employees in Mexico, same that in 2021 generated 2.5% of the GDP, or 34,782 million pesos (US$16.5 billion dollars). The country is within the ten top producers of fluorite, sodium sulfate, wollastonite, celestite, lead, molybdenum, barite, diatomite, magnesium sulfate, zinc, salt, gypsum, cadmium, gold, feldspar and copper, and the top silver producer during the last 13 years. Workers in the industry earn an average of 23,366 pesos per month.     
  • Camimex (Cámara Minera de México) expects Mexico’s investment in mining to surpass US$5 billion (5,000 million pesos). Jaime Gutiérrez, president, pointed that it occurs under the contrast of high metal prices and national policy regulatory hurdles. Karen Flores, director, expressed that the risk in mining is major in exploration, diminishing as the project advances to the mining stage. Another obstacle is the discretionary granting of permits, highlighting the need of a clear and objective decision-making process. Stressed also was the need to have public policies that favor the investments in clean energies, as these are crucial for the competitiveness of the country.
  • Raquel Buenrostro, head of the Economy Secretariat (Secretaría de Economía or SE) indulged herself in a barrage of accusations to the mining industry, pointing that it pays nearly zero taxes in proportion to its earnings, and is one of the industries with more corruption related to the Secretaría de Economía. She indicated that this is one of the reasons why the government has not granted mining concessions for the last four years, further adding that mining companies are no innocent entities, having problems the World around. “After hydrocarbons, the strongest smuggling is that of mining” she stressed, “more than textiles, shoes and clothing”. According to her numbers, mining companies pay 0.002% of its total earnings, compared to 2.4% of major contributors or between 30 and 35% for employees. She also commented on the case of a foreign company that using a twisted argument decided not pay taxes for ten years, while the case if reviewed by the Supreme Court. “Concessions, concessions and concessions were granted, some without complying with the law, some granted more than once, and those who have concessions do not comply with the obligations that should be covered…. the problem of corruption is strong, and I believe that this is one of the areas with biggest corruption problems in the Secretaría de Economía (Note of editor. The points of view of Raquel Buenrostro mimic those of the president, Andrés Manuel López Obrador, which is strongly critical of all private industries, including mining. More than a decade ago, while bidding for the presidency, he had expressed that no mining concessions were to be issued under his term. He’s true to his word, at least in this respect).
  • Camimex (Cámara Minera de México) replied to Raquel Buenrostro, Secretary of Economy (See above) that the companies affiliated to the entity comply in time with its fiscal obligations, including special taxes that only miners pay. The mining industry conveys more resources for the federal coffers than other productive sectors, according to information from the Secretaría de Hacienda y Credito Público. Camimex argues that its enterprises generate more than 400 K direct jobs, and 2.6 M indirect jobs, with an average salary that is 37% higher than the national one. Also, studies by UNAM (Universidad Autónoma de México) show that the municipalities and localities with mining activity have greater levels of economic and human development than the national average. The letter ended “We miners are proud of our activities, the responsible and committed companies in Camimex will continue contributing to the economic development and social wellbeing in the country. We reiterate our commitment and absolute will and interest to establish the dialogue and collaboration with the authorities that are conducive to the strengthening of the sector and the country”.

ON EXPLORATION

  • Colibri Resource Corp. re-commenced phase-2 reverse circulation drilling at the Evelyn property in Sonora. Five holes are planned with 2,000 m of drilling to test induced polarization targets from the 2021 geophysical survey, a second objective is to explore under extensive alluvial cover drilling a number of short holes and sample the top of the bedrock. A soil sampling program has been recently completed, and samples sent for “Gas Soil Hydrocarbon” testing.
  • Almadex Minerals Ltd. released drilling results from its first hole at the San Pedro project in Jalisco. The highlighted core length interval is 4.51 m @ 657 gpt Ag, 0.03 gpt Au (including 2.0 m @ 1,090 gpt Ag, 0.07 gpt Au). Almadex describes a breccia with silicified fragments in sericitic alteration, with galena and sphalerite occurring in the matrix and in fragments. These characteristics point to an intermediate sulfidation epithermal system, although other options have not been ruled out at this stage. “The San Pedro project covers a large area of acid sulphate alteration, including zones previous described as vuggy silica. Recent Terraspec analysis indicates sericitisation superposed on propylitic alteration in the mineralised zones with acid sulphate alteration occurring at the north”.

ON MINING

  • No Relevant News.

ON FINANCING

  • Prismo Metals Inc. announced that the private placement for up to $3 M has been fully allocated.  (Palos Verdes, Sinaloa).
  • Guanajuato Silver Company Ltd. signed a new concentrate and pre-payment facility with Ocean Partners Ltd., to provide a US$5 M revolving credit facility for operating and working capital purposes. GSilver also completed its previously announced shares-for-debt transaction to settle C$1.13 M (El Cubo, Guanajuato).
  • Silver Viper Minerals Corp. closed the first tranche of its $2 M private placement announced in November, for aggregate gross proceeds of $334.6 K (La Virginia, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Torex Gold Resources Inc. reported assays results from step-out and infill drilling at El Limón Sur, targeting underground mineralization as well as open pit mill feed at its El Limón Guajes mine complex in Guerrero. Highlighted core length results comprise 15.96 m @ 87.60 gpt Au, 15 gpt Ag; 0.15% Cu (including 4.46 m @ 163.51 gpt Au, 21 gpt Ag and 3.82 m @ 166.94 gpt Au, 23 gpt Ag, 0.20% Cu); 22.81 m @ 25.31 gpt Au, 122 gpt Ag, 3.45% Cu (including 3.00 m @107.63 gpt Au, 259 gpt Ag, 6.18% Cu); 20.52 m @ 9.49 gpt Au, 63 gpt Ag, 0.21% Cu; 18.72 m @8.10 gpt Au, 24 gpt Ag, 0.95% Cu; 9.90 m @ 15.19 gpt Au, 43 gpt Ag, 0.56% Cu; 17.85 m @ 13.39 gpt Au (including 2.25 m @ 90.05 gpt Au); 7.70 m @ 22.99 gpt Au, 8 gpt Ag, 0.18% Cu; 3.99 m @ 43.24 gpt Au, 25 gpt Ag. These strong results add the El Limón Sur Deep to the previously identified potential mining front at Sub-Sill South. “The style of mineralization at El Limón Sur Deep is like Sub-Sill and ELD, and is characterized by gold, with locally high silver and copper grades. Gold occurs in variably sulfidized, pyrrhotite-rich skarn, while silver and copper mineralization is controlled primarily by the degree of sulfidation of the host skarn. Mineralization is mainly associated with retrograde alteration characterized by the occurrence of phlogopite, amphibole, chlorite, calcite and lesser amounts of quartz and epidote, and local magnetite”.
  • Endeavour Silver Corp. filed a NI-43-101 technical report with a resource estimate for the recently acquired (July 2022) La Pitarrilla project in Durango. Total indicated resources, open pit and underground, oxide and sulfide, stand at 158.6 M tonnes @ 96.4 gpt Ag, 0.31% Pb, 0.74% Zn, containing 491.6 M Oz Ag, 1.1 billion Lb Pb, 2.6 billion Lb Zn or 693.9 M Oz AgEq. Inferred resources, open pit and underground, oxide and sulfide, comprise 35.4 M tonnes @ 87.2 gpt Ag, 0.36% Pb, 0.85% Zn, containing 99.4 M Oz Ag, 281 M Lb Pb, 662 M Lb Zn or 151.2 M Oz AgEq.

ON DEALS AND CORPORATE ISSUES

  • Argonaut Gold Inc. entered into a binding purchase agreement with Heliostar Metals Ltd. for the sale of the Ana Paula project in Guerrero. The deal involves a cash payment of US$10 M at closing, US$5 M in Heliostar shares when either an extension to the current mining permit or a new underground mining permit is granted, US$2 M on the completion of a feasibility study (FS), US$3 M in cash and US$2 M in shares on construction announcement and US$5 M in cash and US$3 M in Heliostar shares on announcement of commercial production.
  • Argonaut Gold Inc. entered into an option agreement with Heliostar Metals Ltd. for the sale of the San Antonio project in Baja California Sur. Heliostar is to pay Argonaut US$80 M if the gold price is below $1,800 per ounce for the six months preceding the exercise of the option, US$120 M if the price is in the US$1,800 to US$2,000 per ounce range in the same period, or US$150 M if the gold price is above US$2,000 per ounce in the said period. A 2.0% NSR is to be paid to Argonaut if the option is exercised. The term of the option is for three years, that can be extended for 18 months if Heliostar is able to acquire an environmental permit from SEMARNAT, the environmental regulator (Note of editor. – which is unlikely to occur on this presidential term, ending in 2024).
  • Prime Meridian Resources Corp. executed two letters of intent for the option to purchase up to 100% interest in the 3,792-hectare El Chuin copper project in Sonora. The project encompasses an interpreted porphyry copper target, with small scale mine workings developed in veins, disseminations and replacement style mineralization. The main target areas are Samaniego, La Gloria and Nogales. The option envisages the payment of US$30 K on year one, US$50 K and 250 K shares on year two, US$50 K and 500 K shares on year three, US$50 K and 1 M shares on year four and US$50 K and 1.5 M shares on year five, for a total of US230 K and 3.25 M shares, plus US$2.22 M of investment on the property. The current property owner retains a 1% NSR that can be bought for US$1.5 M. A second purchase option requires the payment prior to the 5th year anniversary of US$250 K for the La Gloria concession, US$250 K for La Gloria II concession and US$1 M for the Nino Luis concessions. “The El Chuin concessions are currently not in good standing and PMR will be obliged to bring the concessions to good standing. No payments to the vendors will be made prior to obtaining good standing for the concessions”.
  • Capitan Mining Inc. executed an option agreement with Fresnillo PLC to acquire 100% interest in mineral rights to a key property at the Cruz de Plata project in Durango. The high-grade silver trend owned by Capitan is now 2.5 km in length, including extensions and targets on the Jesus Maria, San Rafael, El Tubo, El Refugio and Teresa veins. The optioned land holds 2,000 m of historic drilling in five holes with highlighted core length intervals of 1.0 m @ 233 gpt Ag, 0.1%Pb; 5.2 m @ 185 gpt Ag, 0.29 gpt Au, 0.90% Pb, 1.7% Zn; 29.0 m @ 55 gpt Ag, 0.14 gpt Au, 0.2% Pb, 0.6% Zn (including 1.3 m @ 284 gpt Ag, 0.43 gpt Au, 1.6% Pb, 5.5% Zn); 6.3 m @ 94 gpt Ag, 0.2% Pb, 0.4% Zn; 4.7 m @ 54 gpt Ag, 0.7% Pb, 1.2% Zn; 1.2 m @ 157 gpt Ag, 0.12 gpt Au, 1.1% Pb, 3.3% Zn. The deal involves a 3-year exploration agreement for the “Casco U” mining concessions, for a total of US$1.0 M over the period and 1% NSR which can be bought for US$1 M.
  • Golden Tag Resources Ltd. entered into a definitive agreement with First Majestic Silver Corp. to acquire 100% interest on La Parrilla project in Durango. The property covers 69,478 hectares, with five underground mines, an open pit and a processing plant comprising parallel 1,000 tpd flotation and 1,000 tpd cyanidation leach circuits where oxide and sulfide ores can be processed. There are 9.5 M Oz AgEq in measured and indicated historical resources and 12.5 M Oz AgEq in inferred resources. In consideration for the purchase Golden Tag will issue First Majestic US$20 M in Golden Tag shares, and US$2.7 M in the first 18 months, US$5.75 M (cash or shares) when either 5 M Oz AgEq of reserves or 22 M Oz AgEq of measured and indicated resources are declared. And US$5.05 M (cash or shares) when a new zone with a NI-43-101 report holding more than 12.5 M Oz AgEq is announced. After closing First Majestic will have the right to maintain its pro-rata interest in Golden Tag, up to 19.9% of shares.

ON SOCIAL RESPONSIBILITY

  • Hecla Mining Co. received the 2022 Environmental and Sustainability Excellence Award for its San Sebatian mine in Durango. The award by the American Exploration & Mining Association (AEMA) is in recognition by the company’s strong commitment to the highest environmental and sustainability standards.

On the image below puzzling boudin like siliceous bands in limestone on a project in the Sonoran Desert. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico; Highlights on the First Week of September 2022

/ Gambusino Prospector / Leave a comment

By Jorge Cirett

During the 35th week of the year (August 29th to September 4th, 2022), at least 21 press releases were announced by companies working in Mexico. Five companies posted exploration advances on their properties and three presented production results for the second quarter, while one more provided an operational update. One company sold a portfolio of royalties in Mexican properties, one declared a dividend and closed a $5 M concentrate pre-payment facility. On advanced properties, one company reported metallurgical results, one updated its resource base, one released PEA numbers and one more released drilling results. One company is looking for partners for its projects and one more informed on the completion of the bought of their flagship property.  ON MEXICO ISSUES, the lithium government company is to be run by the son of one federal government executive in Sonora. The rescue effort on ten coal miners in Coahuila is changing to a recovery mission. ON EXPLORATION, in Sonora, Tocvan Ventures released drilling results from Pilar; Prismo Metals received the Lidar survey processed data on Los Pavitos. In Chihuahua, Radius Gold presented drilling results from Amalia. Kootenay Silver released drilling results from Columba. In Zacatecas, Zacatecas Silver reported drill results from El Cristo vein. ON MINING, Impact Silver, Santacruz Silver and Magna Gold financial/operational results for the second quarter 2022. Guanajuato Silver Company provided and operational update on Topia, San Ignacio and El Cubo and Valenciana complexes. ON FINANCING, Millrock Resources sold a portfolio of royalties in Mexican properties to Osisko Gold Royalties. Alamos Gold declared a quarterly dividen, Guanajuato Silver Company closed on a $5 M concentrate pre-payment facility.  ON RESOURCES AND DEVELOPMENT, Discovery Silver reported metallurgical results from its Cordero project in Chihuahua. Starcore International Mines updated on NI 43-101 complaint resources at its San Martin mine in Queretaro. Southern Silver Exploration released numbers on the recently completed PEA at its Cerro Las Minitas project in Durango. Capitan Mining reported drilling results from the Jesus Maria target at its Cruz de Plata project in Durango. ON DEALS AND CORPORATE ISSUES, Mexus Gold US is seeking a partner for its Santa Elena property in Sonora. Minaurum Gold completed the acquisition of its Alamos Silver property in Sonora, with a final payment in cash and shares. ON SOCIAL RESPONSIBILITY, Vizsla Silver released its environmental social and governance (ESG) initiative.

ON MEXICO ISSUES

  • LitioMx. The federal government operation of its newly created Lithium Mining Company (LitioMx) is still hazy, but the possibility has been raised that private companies might participate, also that the current Sonora governor might be involved, and a director has been named, which happens to be a relative of the presidency representative in the State (Although eager to advertise its different way of doing things, this government is making a great effort to replicate the worst practices of past governments).
  • Trapped Coal Miners. Blame put aside, the fate of the 10 trapped miners in Coahuila after the flooding of the coal mine on August 3 is almost defined, and the effort is now changing from rescue to body recovery, which might take months.

ON EXPLORATION

  • Prismo Metals Inc. received results from the Lidar survey carried out at its 5,289 ha Los Pavitos project in Sonora. “Mineralization at Los Pavitos consists of quartz veins and stockworks hosted in metasediments, in shear zones and parallel to foliation and crossing foliation”.
  • Tocvan Ventures Corp. released results from the four final holes drilled at its Pilar project in Sonora. Highlighted drill length intervals comprise 16.78 m @ 0.11 gpt Au; 18.30 m @ 0.24 gpt Au; 50.33 m @ 0.14 gpt Au, 10 gpt Ag (including 10.68 m @ 0.59 gpt Au, 40 gpt Ag); 21.35 m @ 0.13 gpt Au. “All four drill holes were drilled in new areas and intersected alteration and structures known to host gold-silver mineralization at Pilar”.
  • Zacatecas Silver Corp. reported results from the completed phase one diamond drilling at El Cristo vein system in the Zacatecas Silver project in Zacatecas. Highlighted core length intervals comprise 2.1 m @ 204 gpt Ag; 9.0 m @ 149 gpt Ag; 0.53 m @ 200 gpt Ag, 0.34 gpt Au, 0.8% Pb, 0.8% Zn; 0.82 m @ 84 gpt Ag, 0.14 gpt Au, 11.8% Pb, 3.7% Zn; 0.85 m @ 45 gpt Ag, 0.82 gpt Au, 1.9% Pb, 2.4% Zn; 3.0 m @ 250 gpt Ag; 0.55 m @ 198 gpt Ag, 1.6 m @ 175 gpt Ag. “Drill holes targeted the near surface depth extension of the larger surface workings and/or the depth extension of veins around the deeper historical shaft. The 28 holes drilled to date by the Company have been scout holes also designed to test select veins over at least 2 km of strike extension”.
  • Radius Gold Inc. reported results from three drill holes on El Cuervo target at the Amalia project in Chihuahua (Radius 35%, Pan American Silver 65%). Highlighted core length drill results comprise 17.00 m @ 438 gpt Ag, 0.80 gpt Au (including 2.0 m @ 3,182 gpt Ag, 4.49 gpt Au); 13.55 m @ 841 gpt Ag, 10.25 gpt Au (including 5.65 m @ 1,560 gpt Ag, 19.6 gpt Au). “Drilling at El Cuervo has defined mineralization similar to the Amalia structure, consisting of epithermal quartz veins, breccias and veinlets stockworks hosted within rhyolite volcanics along a major fault system. El Cuervo remains open to expansion along strike and to depth”.
  • Kootenay Silver Inc. released another batch of results from its phase 4 drilling program at Columba, Chihuahua. Highlighted core length results comprise 3.90 m @ 574 gpt Ag, 0.2% Pb, 0.7% Zn (including 0.90 m @ 949 gpt Ag, 0.4% Pb, 1.1% Zn) in the D vein, and 17.00 m @ 95 gpt Ag, 0.1% Zn (including 2.05 m @ 221 gpt Ag, 0.2% Zn); 0.4 m @ 325 gpt Ag, 0.2% Pb, 0.6% Zn; 1.58 m @ 425 gpt Ag, 0.1% Pb, 0.3% Zn; 2.97 m @ 91 gpt Ag, 0.2% Zn; 1.63 m @ 2,330 gpt Ag, 0.8% Zn; 6.5 m @ 156 gpt Ag, 0.1% Pb, 0.1% Zn (including 1.05 m @ 769 gpt Ag, 0.5% Zn); 1.00 m @ 305 gpt Ag, 0.2% Pb, 0.2% Zn; 1.00 m @ 194 gpt Ag, 0.2% Pb, 0.2% Zn.

ON MINING

  • Impact Silver Corp. announced financial and operating results for the second quarter 2022. At its Real de Zacualpan project in Estado de Mexico, 37.2 K tonnes averaging 159 gpt Ag were milled during the period, to sell 151.3 K Oz Ag. Impact has no long term debt and cash on hand stands at $18.4 M. Two underground and two surface rigs continue with the 20,000 meters drilling program for the year.
  • Santacruz Silver Mining Ltd. reported its financial and operating results for the second quarter 2022. At Zimapan, in Hidalgo, 200 K tonnes were milled to produce 914.5 K Oz AgEq at $16.71 cash cost per Oz AgEq and an AISC of $20.64 per Oz AgEq.
  • Magna Gold Corp. announced operating and financial results for the second quarter of 2022. At the San Francisco mine in Sonora 5.9 M tonnes were mined, of which 1.4 M tonnes averaging 0.39 gpt Au were placed on the heaps to produce 10,795 Oz Au. Cash at the end of the period was $1.4 M, while working capital was negative $35.4 M. “management believes it is prudent to preserve capital by reducing mining rates and secondary activities across the Company’s portfolio of assets……… the Company’s board and management determined that previously stated guidance for FY 2022 will be retracted and revised at a later date when a more accurate estimate of production impacts is known”.
  • Guanajuato Silver Company Ltd. provided an operational update detailing the integration of El Cubo mine and milling complex with the recently acquired Topia (Durango) and San Ignacio (Guanajuato) mines from Great Panther Mining Ltd. and the San Ignacio mine and Valenciana mines complex (both in Guanajuato). At El Cubo, the development of a 150 m tunnel and ramp reduced the total haulage distance from 7.2 km to 2.5 km with a strong impact on the project economics. Mineral from the San Ignacio mine is being transported to El Cubo mill for processing, and is expected to provide 5 to 6 K tonnes of material per month to the end of the year. At the Valenciana Mines Complex opportunities are being reviewed to restart mining and to process the material at the Cata mill in 2023. At Topia, the sale of 99.2 dry tonnes of Pb-Zn-Au concentrate 97.7 dry tonnes of Zn-Ag concentrate has been reported since the completion of the acquisition.

ON FINANCING

  • Millrock Resources Inc. sold a portfolio of royalties to Osisko Gold Royalties Ltd. with gross proceeds of $1.2 M. The Mexican properties involved include Santa Rosalía (Sonora), El Valle, El Pima (Sonora), Violeta and Guadalcazar (San Luis Potosi).
  • Alamos Gold Inc. informed the company’s board of directors declared a quarterly dividend of US$0.025 per common share (Mulatos, Sonora).
  • Guanajuato Silver Company Ltd. reported that in conjunction with the acquisition of the Topia mine in Durango and the Mine Complex in Guanajuato from Great Panther Mining Ltd., has closed a US$5 M concentrate pre-payment facility with Ocean Partners UK Ltd. “Interest on the loan will be calculated at 12-month LIBOR + 7.5%” (Guanajuato Mine Complex, Guanajuato).

ON RESOURCES AND DEVELOPMENT

  • Discovery Silver Corp. reported results from the metallurgical test program on the pre-feasibility study (PFS) from its Cordero project in Chihuahua. Recoveries of 94-98% Ag, 89-97% Pb, 92-96% Zn were achieved on high grade samples of all major rock types, and recoveries of 83-92% Ag, 85-92% Pb, 81-89% Zn on medium grade samples of blended rock types. “Oxide-sulphide blend testwork establish oxide-specific recoveries of ~60% for silver, ~40% for lead and ~85% for zinc via flotation; co-processing oxide mineralized material via flotation eliminates the need for heap leach processing”.
  • Starcore International Mines Ltd. released its updated NI 43-101 reserve and resource estimates for its San Martin mine in Querétaro. Proven and probable reserves stand at 1.35 M tonnes @ 1.74 gpt Au, 13 gpt Ag containing 75,353 Oz Au, 573 K Oz Ag, and indicated and inferred resources of 1.48 M tonnes @ 1.78 gpt Au, 14 gpt Ag, containing 160,352 Oz Au, 1.22 M Oz Ag. The exploration program for 2022 envisages 10,000 meters of diamond drilling near the current operations.
  • Southern Silver Exploration Corp. reported results from its preliminary economic assessment (PEA) on its Cerro Las Minitas project in Durango. The study’s base case envisages an after-tax NPV5% of $349 M, an IRR of 17.9% with Ag at $21.95 per Oz, Cu at $3.78 per Lb, Pb at $0.94 per Lb, Zn at $1.33 per Lb. The indicated mineral resources included on the study comprise 12.3 M tonnes @ 106 gpt Ag, 0.16% Cu, 1.3% Pb, 3.3% Zn containing 42.1 M Oz Ag, 44 M Lb Cu, 358 M Lb Pb, 895 M Lb Zn, while inferred resources comprise 19.6 M tonnes @ 117 gpt Ag, 0.23% Cu, 1.2% Pb, 2,3% Zn, totaling 73.6 M Oz Ag, 98 M Lb Cu, 500 M Lb Pb, 1,009 M Lb Zn. Only sulfide mineralization was included in the study to produce Cu, Pb and zinc concentrates with the recoveries estimated at 91.6% Ag, 60% Cu, 88% Pb, 93% Zn.
  • Capitan Mining Inc. reported exploration results from five reverse circulation holes at its Cruz de Plata project in Durango. “All drillholes were successful in intersecting Jesus Maria style mineralization, expanding the zone between 43m and 114m down-dip along section”. Highlighted drill length intervals comprise 3.0 m @ 52 gpt Ag, 0.10 gpt Au, 1.3% Pb, 3.4% Zn; 19.8 m @ 29 gpt Ag, 0.08 gpt Au, 0.4% Pb, 0.6% Zn; 13.7 m @ 69 gpt Ag, 0.17 gpt Au, 0.5% Pb, 1.0% Zn; 21.3 m @ 84 gpt Ag, 0.05 gpt Au, 0.6% Pb, 0.7% Zn (including 1.5 m @ 189 gpt Ag, 0.02 gpt Au; 2.3% Pb, 2.3% Zn.

ON DEALS AND CORPORATE ISSUES

  • Mexus Gold US. continues to seek the right partner for production and/or exploration of its Santa Elena property in Sonora (not to mistake for First Majestic’s Santa Elena mine, also in Sonora).
  • Minaurum Gold Inc. announced the completion of the acquisition of 100% interest in the Alamos Silver project in Sonora. The 37,928-hectare property encompasses the historical 200 M Oz Ag Alamos district including 26 epithermal veins. Minaurum completed all work commitments and option payments and made a final compensation of C$300 K in cash and 443.6 K shares.

ON SOCIAL RESPONSIBILITY

  • Vizsla Silver Corp. announced the continued progression on its environmental, social and governance (ESG) initiatives through safety, sustainability and commitment to communities.

On the image below: Banded Specularite-quartz-calcite vein in the Sonoran Desert. Picture by Jorge Cirett.