The Mining and Exploration News in Mexico: Highlights on the First Week of January, 2022

By Jorge Cirett

During the 1st week of the year (January 3rd to January 9th, 2022), at least 17 press releases were announced by companies working in Mexico. To note, four companies posted exploration advances on their properties, one released its quarterly production figures, one is considering the end of mining operations, one is to mill third party ore, three posted on development and two on property deals. ON MEXICO ISSUES, three mining properties are to be commissioned during 2022 in Durango. According to Camimex, 60 thousand women work in the Mexican Mining industry. ON EXPLORATION, In Baja California, One World Lithium presented water sample results from drilling at Salar del Diablo. In Sonora, Riverside Resources reported high-grade results from surface sampling; Aztec Minerals informed on its ongoing RC drilling program at Cervantes. In Coahuila, Monumental Minerals is to carry on an airborne geophysical survey at its rare-earth Jemi project. ON MINING, Excellon Resources provided an update on its Platosa mine in Durango and on the exploration efforts in several projects. GoGold Resources presented Q4 2021 production results. Endeavour Silver announced its new Sustainable Strategy. Guanajuato Silver is to begin processing third party ores at its El Cubo mill.  ON FINANCING, no relevant news. ON RESOURCES AND DEVELOPMENT, Fabled Silver released results from drilling at Santa Maria, in Chihuahua. GoGold Resources announced the acceleration of its drill program at Los Ricos North and South projects in Jalisco. Golden Tag Resources is to recommence drilling at its San Diego project in Durango. ON DEALS AND CORPORATE ISSUES, Mexus Gold US optioned its Mabel property in Sonora to Irmex Mining. Xali Gold extended the earn-in agreement of Sun River Gold into the El Oro tailings project in Estado de Mexico. ON SOCIAL RESPONSIBILITY, Minera Media Luna (Torex Gold), Minera Pangea (McEwen Mining) and Equinox Gold  informed on social measures for the betterment of communities near its operations.

ON MEXICO ISSUES

  • Three new mining facilities to be inaugurated in Durango in Q1 2022, according to Gustavo Kienttzle Baille (Secretaría de Desarrollo Económico del Estado). The construction of two mines in Pueblo Nuevo and one in Tepehuanes started in 2021 with a total investment of US$46 M.
  • According to Camimex (Cámara Minera de México) 60 thousand women work in the Mexican mining industry. This is a great advance, as only a few decades ago women were prohibited by law to work in mining.

ON EXPLORATION

  • One World Lithium Inc. presented assay results from water samples from the Salar del Diablo project in Baja California. Multiple water samples were collected at different depths from four holes, two drilled in 2019 and two more in 2021, with depths ranging from 191 to 647 m. All samples returned less than 0.5 mg/L Lithium, less than 100 mg/L Potassium and less than 5 mg/L Boron, the detection limit for each element. “Drilling conditions were challenging as the fine grained and poorly consolidated nature of sediments that were only poorly to moderately cemented resulted in abundant borehole unravelling and “caving” during drilling”.
  • Riverside Resources Inc. reported high-grade sample assay results from its La Union project in Sonora. Highlighted results comprise 83.2 gpt Au; 0.3 gpt Au, 4,816 gpt Ag, 10.3% Pb, 3.5% Zn; nil-Au, 8 gpt Ag, 2% Pb, 21.4% Zn;  0.1 gpt Au, 176 gpt Ag, 3.8% Pb, 19.8% Zn; 6.1 gpt Au, 23 gpt Ag, 8.2% Pb; 8.8 gpt Au, 183 gpt Ag, 3.9% Pb, 3.4% Zn from chips, 22.6 gpt Au, 20 gpt Ag; 4.2 gpt Au, 42 gpt Ag, 2.3% Pb, 3.5% Zn from dumps and 0.8 m @ 9.4 gpt Au, 108 gpt Ag, 1.6% Zn; 1.6 m @ 9.9 gpt Au, 54 gpt Ag, 2.5% Zn; 0.6 m @ 3.6 gpt Au, 373 gpt Ag, 7.3% Pb, 7.3% Zn; 1.5 m @ 2.6 gpt Au, 170 gpt Ag, 0.7% Pb, 6.6% Zn in chip channels. “Mineralization is found on surface associated with low angle faults, folds, with the thicker mineralized intervals being where high angle fault intersect with other structures creating ‘traps’”.
  • Aztec Minerals Corp. informed on work carried out in 2021 at the Cervantes project in Sonora. The ongoing 5,000 m reverse circulation drill program commenced on Q4 2021, with 14 holes on the California target, one at the California North prospect, one at the Jasper prospect and four to six holes on the Purisima target.
  • Monumental Minerals Corp. is to carry an airborne magnetic and radiometric survey over its Jemi project in Coahuila. The property is host to several rare earth element occurrences, like Neodymium (Nd), Praseodymium (Pr), dysprosium (Dy) and Terbium (Tb), with associated Tantalum (Ta), niobium (Nb) and zirconium (Zr). “The high-resolution helicopter-borne magnetic and radiometric survey will be flown at 100 m line spacing over an area of approximately 100 km2 for a total of 1,120 line-km. It will be centred on the 8 km diameter Sierra La Vasca intrusion complex that hosts the Jemi HREE mineral occurrences”.

ON MINING

  • Excellon Resources Inc. provided an update on its Platosa operations in Durango and company-wide exploration plans. The company is evaluating the continuation of mining activities at Platosa (commissioned in mid-2005) beyond mid-2021 as a result of increased labour and energy costs at the time that mining is entering an area of the deposit where mineralization steepens, with fewer vertical-tonnes-per-meter than historically encountered. The company keeps exploring the Platosa property, with a 2,700 m drill program planned in 2022 on the PND skarn target and is conducting an O18 isotope study on the CRD–style Jaboncillo target, 11 Km northwest of the Platosa mine. At the nearby Evolución project, a 4,600 m drilling program is planned.
  • GoGold Resources Corp. informed on the production during the Q4 2021 of 2,558 Oz Au, 195.7 K Oz Ag, 123 tonnes Cu (444.1 K Oz AgEq) at its Parral tailings operation in Chihuahua.
  • Endeavour Silver Corp. introduced its new Sustainable Strategy, with three-year targets. The strategic plan involves increasing the positive social impact for people, elevate the environmental stewardship of the planet and lead a healthy, long term business (Terronera, Jalisco).
  • Guanajuato Silver Company Ltd. announced it will begin to process mineralized material from third parties at its El Cubo mill in Guanajuato. Approximately 4,000 tonnes form a mining operation in the Guanajuato area have been contracted “It is GSilver’s intention to use the approximately 20,000 tonne per month of excess capacity at the El Cubo mill to profitably process mineralized material from various potential sources in the Guanajuato area. Whether the business arrangement is designed as toll milling, raw material purchasing, or profit sharing, if it serves to contribute to our bottom line and helps to expand our presence in the 480-year-old mining camp of Guanajuato, then we will pursue it”.

ON FINANCING

  • No Relevant News.

ON RESOURCES AND DEVELOPMENT

  • Fabled Silver Gold Corp. released results from drilling at its Santa Maria project in Chihuahua. Highlighted core length intercepts comprise 0.95 m @ 0.16 gpt Au, 154 gpt Ag; 0.2% Zn; 13.10 m @ 0.23 gpt Au, 86 gpt Ag, 0.1% Pb, 0.4% Zn (including 6.10m @ 0.34 gpt Au, 159 gpt Ag, 0.3% Pb, 0.8% Zn, 0.3% Cu, which includes 1.50 m @ 0.32 gpt Au, 283 gpt Ag and 1.25 m @ 0.46 gpt Au, 315 gpt Ag, 1.0% Pb, 2.8% Zn, 0.08% Cu). Samples from three more holes have been sent for assaying.
  • GoGold Resources Inc.  announced the acceleration of its drill program at Los Ricos North and South projects in Jalisco.
  • Golden Tag Resources Ltd. is to recommence diamond drilling at its San Diego project in Durango. “The current expanded 4,500 metre (“m”) diamond drill exploration program is a follow up to the 4,716 m of diamond drilling that had previously been completed and reported in 1H, 2021. As of December 20, 2021 a total of 2,350 m has been drilled, leaving approximately 2,150 m of additional drilling to be completed”. A total of 1,675 samples were sent to the lab for assaying and results are pending.

ON DEALS AND CORPORATE ISSUES

  • Mexus Gold US. Signed a letter of intent (LOI) with Irmex Mining, a Mexican corporation for its Mabel property in Sonora. The agreement on the 1,459 ha project will include cash and a 10% net profit interest (NPI). Mexus Gold is to focus in finding a JV partner for its flagship project Santa Elena, also in Sonora.
  • Xali Gold Corp. extended the Earn-In Option Agreement with Sun River Gold Corp. on the tailings project in El Oro, Estado de Mexico, in advanced exchange for net profits interests (NPI). Xali Gold granted Sun River a 6-month extension from October 31, 2021 to April 31, 2022 (Note.- This non-existent date is in the press release) for advanced NPI payments of US$17.4 K and additional eight months for additional payments. If commercial production is not achieved by May 1, 2022, Xali Gold agreed to grant a second extension until December 31, 2002 under the following terms: 1) Advanced NPI payments of US$15 K, commencing in May; 2) Advanced NPI payments of US$50 K per month once commercial production is reached during the first year of operation, and normal 5% NPI payments afterwards; paying the first US$1.5 M of the Municipality NPI owing to Xali Gold during the first three years of operation.

ON SOCIAL RESPONSIBILITY

  • Minera Media Luna (Torex Gold) informed on social support towards the Cocula Municipality in Guerrero.
  • Minera Pangea informed on actions taken promoting the health of inhabitants near its operations in Northern Sinaloa.
  • Equinox Gold informed on social support to communities near Los Filos mine in Guerrero.

On the image below: Copper stained silicified ridge on a project in the Sonoran Desert. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the Fourth Week of December, 2021

By Jorge Cirett

During the 51st week of the year (December 20th to December 26th, 2021), at least 16 press releases were announced by companies working in Mexico. To note, three companies posted exploration advances on their properties, one obtained an environmental permit to keep operating, three released financing/shares/stock exchange related news, while five companies posted on project development or resource definition and one more on a property sale. ON MEXICO ISSUES, the environmental permit needed to keep Fortuna Silver’s San José mine in operation was finally granted by SEMARNAT. ON EXPLORATION, In Sonora, Colibri Resources completed a 3,122 m RC drilling campaign at Evelyn; Silver Spruce is preparing to submit the environmental permit for El Mezquite. Southern Empire Resources initiated an air-borne magnetic and radiometric geophysical survey. ON MINING, Fortuna Silver Mines was granted the environmental permit to continue its operations at the San Jose mine in Oaxaca. The company had to sue SEMARNAT because the organism was not granting the permit although complaining with all regulations. In the end, not-public negotiations and technical reviews resulted in the permit being granted. ON FINANCING, Alamos Gold is to repurchase up to 30 M of its public shares. Prime Mining was added to the MVIS Global Junior Miners Index. Sonoro Gold closed its non-brokered placement for $3 M. ON RESOURCES AND DEVELOPMENT, Almaden Minerals updated on its 2022 plans at Ixtaca; The environmental permit is being prepared for re-submittal as well as the human rights impact assessment (HRIA) report; A favorable outcome on a Supreme Court lawsuit is expected for H2 2022. Guanajuato Silver Co. provided drilling results for El Cubo and Pinguico in Guanajuato. Avino Silver & Gold Mines filed the mineral resource estimate for La Preciosa, in Durango. Silver Dollar Resources informed on the drilling of 1,134 m at its La Joya project in Durango. Azucar Minerals defined a large lithocap at a new target zone on its El Cobre project, Veracruz. ON DEALS AND CORPORATE ISSUES, GR Silver Mining sold El Salto and El Salto Sur mining concessions (covering 56,910 ha) to Grupo Minero Venturex, for past taxes and a 0.5% NSR. ON SOCIAL RESPONSIBILITY, SilverCrest Metals, Peña Colorada and Industrias Peñoles informed on social measures for the betterment of communities near its operations.

ON MEXICO ISSUES

  • The Mexican environmental regulator (SEMARNAT) finally approved the environmental permit needed to keep Fortuna Silver’s San José mine (in Oaxaca) in operation. Thousands of workers and inhabitants of communities near the mine to be affected by the impending closure appreciate the outcome.

ON EXPLORATION

  • Colibri Resource Corp. completed 3,122 m of reverse circulation (RC) drilling in 22 holes at its Evelyin project in Sonora. The drill program, geological mapping and outcrop sampling were paused for the holidays.  “The Company will resume Phase I drilling at the El Sahuaro and Cerro Rojo targets, as well as other prioritized targets on the property in January, upon receipt and interpretation drill assay results”.
  • Southern Empire Resources Corp. initiated a high-resolution airborne magnetic and radiometric geophysical surveys at its Pedro project in Durango. The geophysical program comprises 384 line-km in 96 flight lines at 50 m spacing. In addition, a nine-hole 2,000 m drill core program is expected to start in January of 2022 in the 1,750 hectares mineral concession.
  • Silver Spruce Resources Inc. informed it is in the reviewing process for submission of the environmental report (Informe Preventivo) on its El Mezquite project in Sonora. The company intends to carry an additional phase of reverse circulation drilling with up to fourteen holes comprising 1,500 to 2,500 m in the 180 hectares project.

ON MINING

  • Fortuna Silver Mines Inc. informed the Secretaría de Medio Ambiente y Recursos Naturales (SEMERNAT) granted a 12 year extension of the environmental impact authorization (abbreviated as MIA, in Spanish) at the San Jose mine in Oaxaca. SEMERNAT had previously denied the extension application and Fortuna had to appeal the decision. “After continued dialogue and technical evaluation, SEMARNAT confirmed operations at the San Jose Mine are conducted in accordance with all environmental obligations” and granted the extension on the existing MIA.

ON FINANCING

  • Alamos Gold Inc. filed for a normal course issuer bid permitting Alamos to purchase for cancellation up to 30 M class A common shares, representing 10% of the company’s public float of the common shares to date. “The price for any repurchased Common Shares will be the prevailing market price at the time of the purchase. All Common Shares purchased by Alamos will be cancelled“ (Mulatos, Sonora).
  • Prime Mining Corp. has been added to the MVIS Global Junior Miners Index as of December 17, 2021 (Los Reyes, Sinaloa).
  • Sonoro Gold Corp. announced the closing of its previously announced non-brokered placement for aggregate proceeds of $3 M. In total the company paid $47.4 K in finder’s fees and 263.4 K in non-transferable Finder’s warrants.

ON RESOURCES AND DEVELOPMENT

  • Almaden Minerals Ltd. presented its plans for 2022. The company is preparing the resubmittal of the environmental permit for the Ixtaca project in Puebla, documenting well beyond the legal and regulatory framework in Mexico for filing in H1 2022, as well as the human rights impact assessment (HRIA) report. Almaden expects a lawsuit at the Supreme Court of Justice of Mexico being used to dispute the constitutionality of the Mexican mineral title regime to be solved favorably, optimistically in H2 2022. Since the last press release in October 2021, three more drill holes have been completed in the South East Alteration zone target near Ixtaca, and “The geologic observations and complete assay data will be analysed and additional mineral studies will be conducted on the core in order to identify any geochemical or mineral vectors in order to plan follow-up work in this area”.
  • Guanajuato Silver Company Ltd. provided drilling results from the El Cubo and Pinguico in Guanajuato. At the Cebolletas and 1850 Stope true width (TW) highlighted intervals comprise 2.00 m @ 1.10 gpt Au, 85 gpt Ag; 0.45 m @ 4.33 gpt Au, 192 gpt Ag; 3.87 m @ 1.38 gpt Au, 124 gpt Ag; 1.40 m @ 0.37 gpt Au, 99 gpt Ag in drilling by GR Silver and 1.62 m @ 2.85 gpt Au, 179 gpt Ag; 2.60 m @ 1.12 gpt Au, 131 gpt Ag; 1.71 m @ 0.46 gpt Au, 152 gpt Ag in drilling by Endeavour Silver. At El Cubo Villapando highlighted TW intervals comprise 6.35 m @ 0.69 gpt Au, 65 gpt Ag; 1.57 m @ 0.88 gpt Au, 98 gpt Ag. At El Pinguico, highlighted TW intervals comprise 4.05 m @ 0.68 gpt Au, 62 gpt Ag; 1.00 m @ 1.50 gpt Au, 122 gpt Ag; 0.55 m @ 2.11 gpt Au, 505 gpt Ag; 1.65 m @ 2.45 gpt Au, 125 gpt Ag; 7.95 m @ 1.35 gpt Au, 39 gpt Ag; 0.75 m @ 8.81 gpt Au, 208 gpt Ag; 8.10 m @ 1.00 gpt Au, 93 gpt Ag; 0.55 m @ 1.91 gpt Au, 75 gpt Ag.
  • Avino Silver & Gold Mines Ltd. filed the mineral resource estimate report on the La Preciosa project in Durango, which the company is proposing to acquire. The indicated mineral resource estimate comprises 17.4 M tonnes @ 176 gpt Ag, 0.34 gpt Au (202 gpt AgEq), containing 99 M Oz Ag, 189 K Oz Au (113 M Oz AgEq), whereas the inferred mineral resource includes 4.4 M tonnes @ 151 gpt Ag, 0.25 gpt Au (170 gpt AgEq), containing 21 M Oz Ag, 35 K Oz Au (24 M Oz AgEq).
  • Silver Dollar Resources Inc. informed 1,134 m of drilling have been completed in five holes at its La Joya project in Durango. “The initial drilling program is focused on target development on the Noria portion of the La Joya property with an emphasis on testing for possible structural extensions of known mineralized zones”.
  • Azucar Minerals Ltd. defined a large area of lithocap alteration in a newly outlined target at El Cobre project in Veracruz.” The new spectral mineral mapping in this area ….. has further defined a strong alteration signature with clear zoning including a central diaspore-pyrophyllite-shallow alunite/dickite and concentric halos of paragonitic and muscovitic white mica and inner propylitic epidote halo”. A soil sampling program is being completed for spectral and geochemical analysis intending to identify vectors to focus a drill program.

ON DEALS AND CORPORATE ISSUES

  • GR Silver Mining Ltd. announced the sale of El Salto and El Salto Sur non-core concessions, acquired from Mako Mining Corp. on March 2021, to the private Mexican company Grupo Minero Venturex S.A. de C.V.. The company received US$1 K, retaining a 0.5% NSR, and leaving Venturex responsible to pay all outstanding concession fees and related fines (Note by editor.- holding large titled mining concessions in Mexico is very expensive). In June GR Silver applied for the reduction of the surface of the 56,910 ha claims, but still has to receive the approval from the Dirección General de Minas (DGM).

ON SOCIAL RESPONSIBILITY

  • SilverCrest Metals inaugurated the Tetuachi bridge across the Sonora River in Arizpe, Sonora.
  • Peña Colorada donated material and equipment to the Biosfera Sierra de Manantlán.
  • Industrias Peñoles invested seven million pesos in the park Bosque Venustiano Carranza in Torreon, Coahuila.

On the image below: epidote filled fractures with calc-sodic halo and late quartz veinlet in a copper project in the Sonoran Desert. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the Second Week of December, 2021

By Jorge Cirett

During the 49th week of the year (December 6th to December 12th, 2021), at least 20 press releases were announced by companies working in Mexico. To note, four companies posted exploration advances on their properties, there were no mining related news, two released financing news, one more settled a debt with shares and one more qualified to trade on the OTCQB; two companies released resource estimates, one posted on drilling results from an advanced property and one more provided an update on ramping up mining activities. One company changed its name and one more is to create a spin-off company for its remaining exploration projects. ON MEXICO ISSUES, Sonora, Guerrero and Oaxaca can become poles of mining activity. Camimex asked the president to ease the grip on the issuance of mining concessions, as it is to strangle the industry. The Zacatecas Mining Cluster inaugurated Quantum City. The national employment service increased the jobs offered in the mining industry. ON EXPLORATION, In Sonora, Heliostar Metals commenced drilling at Cumaro; Tocvan Ventures is trenching at Pilar. In Sinaloa, Vizsla Silver released drilling results from the Napoleon deposit at Panuco. In Guerrero, Pantera Silver received a drill permit for Nuevo Taxco. ON MINING, no relevant news. ON FINANCING, Guanajuato Silver and Prismo Metals announced or closed financing rounds for C$9.52 M and $2 M respectively. Aloro Mining is to settle a $211 K debt with shares. Sierra Madre Gold and Silver qualified for trading at the OTCQB in the USA. ON RESOURCES AND DEVELOPMENT, Discovery Silver filed the technical report with updated mineral resources at Cordero. Fabled Silver released drill results at Santa Maria. GoGold presented the initial mineral resource estimate on four deposits at Los Ricos North project, and current resources at Los Ricos Sur and the Parral tailings projects. Minera Alamos updated on ramping up of mining at Santana. Oroco Resources released its first drilling results from drilling the Santo Tomás deposit in Sinaloa.  ON DEALS AND CORPORATE ISSUES, Advance Gold changed its name to Advance Lithium Corp., and Solaris Resources intends to transfer its non-core assets to a subsidiary company. Prime Meridian Resources optioned the La Verde Grande project in Sonora, for which is to forward US400 K in cash and US$8 M in shares in staged payments. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • According to a note by Mexico Business News, Sonora, Guerrero and Oaxaca are to be poles of mining exploration in the coming years.
  • Camimex (Cámara Minera de México) asked the AMLO presidency to grant new mining concessions, as the lack of issuance of titles is to result in a shortage of mines in the future due to the lack of exploration. Mexico has seen its standing on the Fraser Institute report to fall from the 29 to the 42 position from 2018 to 2020.
  • The Zacatecas Mining Cluster inaugurated its Mining Center in Quantum City, to forward research, innovation and technological development in the State’s mining industry.
  • The Servicio Nacional de Empleo (National Employment Service) increased its jobs offer in the mining industry.

ON EXPLORATION

  • Vizsla Silver Corp. released results from twenty one drill holes targeting the Napoleon vein resource area, at Panuco, Sinaloa. The Napoleon vein measures approximately 1,000 m by 3.86 m in width, to a depth of 400 m, averaging 148 gpt Ag, 2.90 gpt Au, 0.46% Pb, 1.44% Zn (453 gpt AgEq), while the greater Napoleon vein resource area (including the previous one) measures 1,820 m by an average of 3.36 m in width to a depth of 300 m, averaging 142 gpt Ag, 2.62 gpt Au, 0.46% Pb, 1.39% Zn (421 gpt AgEq). Highlighted true width intercepts comprise 5.76 m @ 0.81 gpt Au, 56 gpt Ag, 0.8% Pb, 2.5% Zn; 1.21 m @ 2.25 gpt Au, 26 gpt Ag; 10.69 m @ 1.21 gpt Au, 220 gpt Ag, 0.4% Pb, 0.8% Zn; 1.74 m @ 0.29 gpt Au, 206 gpt Ag; 1.63 m @ 2.69 gpt Au, 34 gpt Ag, 0.2% Pb, 2.2% Zn; 2.52 m @ 0.54 gpt Au, 156 gpt Ag; 1.14 m @ 4.75 gpt Au, 128 gpt Ag, 1.2% Pb, 2.5% Zn; 2.90 m @ 0.76 gpt Au, 210 gpt Ag, 2.2% Pb, 1.8% Zn.
  • Heliostar Metals Ltd. commenced a drill program at its Cumaro project in Sonora. The drill program will focus on the Verde, Basaitegui and Palmita vein corridors. The Verde target comprises three veins with 530 m strike length 0.5 to 5.0 m in width, where previous surface sampling has returned 5.0 m @ 10.3 gpt Au, 168 gpt Ag; 5.9 m @ 2.65 gpt Au, 105 gpt Ag; 3.0 m @ 4.68 gpt Au, 61 gpt Ag; 1.75 m @ 11.5 gpt Au, 125 gpt Ag. At the Basaitegui target vein textures indicate a shallower part of the system is exposed and the vein at depth is to be tested. At the 1.7 km long Palmita target the mineralization system is also interpreted as shallow and the aim is to intercept the vein at depth.
  • Pantera Silver Corp. received a drill permit from the government for its Nuevo Taxco project in Guerrero. The maiden drill program is focused on priority targets within 135 ha area historically prepared for drilling by Impact Silver. This area hosts over 21 veins with “substantial width” and mapped lengths of 150 to 350 m, remaining open along strike and depth.
  • Tocvan Ventures Corp. updated on the trenching program at the Pilar project in Sonora. “Trenching is currently underway with four trenches completed to date at 4-Trench, North Hill and Main Zone targets”. At the Main zone the plan is to test an area where surface sampling has returned 10 m @ 2.5 gpt Au, 27 gpt Ag.

ON MINING

  • No relevant news.

ON FINANCING

  • Guanajuato Silver Company Ltd. closed the second and final tranche of its non-brokered private placement offering, for gross proceeds of C$9.52 M (El Cubo, Guanajuato).
  • Prismo Metals Inc. announced a non-brokered private placement intended to raise gross proceeds of up to $2 M (Los Pavitos, Sonora).
  • Aloro Mining Corp. intends to settle a debt for $211.2 K to various insiders of the company with 3.84 M shares (Los Venados, Sonora).
  • Sierra Madre Gold and Silver Ltd. announced it has qualified for trading on the OTCQB Venture Market in the United States operated by the OTC Markets Group Inc. (Tepic and La Tigra projects, Nayarit).

ON RESOURCES AND DEVELOPMENT

  • Discovery Silver Corp. filed the technical report with the update of mineral resources for the Cordero project in Chihuahua. The NI-43-101 report for the preliminary economic assessment (PEA) for Cordero will be filed within 45 days of November 30, 2021.
  • Fabled Silver Gold Corp. released results from one more hole at Santa Maria in Chihuahua. Nine core length intervals 1.5 to 3.0 m in width returned up to 0.16 gpt Au, 66 gpt Ag.
  • GoGold Resources Inc. released its initial mineral resource estimate for the Los Ricos North project in Jalisco, and updated the mineral reserve at the Parral tailings operation. Oxide indicated mineral from the El Favor, Casados, La Trini and Mololoa deposits adds up to 14.5 M tonnes @ 0.37 gpt Au, 100 gpt Ag, and inferred mineral resources of 15.0 m tonnes @ 0.28 gpt Au, 95 gpt Ag, containing 171 K Oz Au, 46.5 M Oz Ag and 136 K Oz Au, 44.1 M Oz Ag respectively. At El Orito sulfide zone there are 7.8 M tonnes @ 0.06 gpt Au, 28 gpt Ag, 0.11% Cu, 0.88% Pb, 1.33% Zn as indicated resources, and 5.5 M tonnes @ 0.06 gpt Au, 28 gpt Ag, 0.12% Cu, 0.74% Pb, 1.20% Zn as inferred resources, containing 15 K Oz Au, 7 M Oz Ag, 19 M Lb Cu, 151 M Lb, Pb, 229 M Lb Zn and 11 K Oz Au, 4.9 M Oz Ag, 15 M Lb Cu, 90 M Lb Pb, 146 M Lb Zn respectively, for a grand total of 334 K Oz Au, 93.5 M Oz Ag, 34 M Lb Cu, 241 M Lb Pb, 375 M Lb Zn. At the neighboring Los Ricos Sur project, the company holds 385 K Oz Au, 49.9 M Oz Ag in measured, indicated and inferred resources. At the Parral tailing project proven and probable mineral reserves are 12.8 M tonnes @ 0.35 gpt Au, 32.6 gpt Ag, containing 144 K Oz Au, 13.4 M Oz Ag.
  • Minera Alamos Inc. provided an update on the ramping-up of mining at Santana, in Sonora. Over 7,300 Oz Au have been placed on the leach pad, while cumulative gold recovery from ore under leach for more than 30 days his approaching 70%. “Mining and crushing activities at the project site continue to progress as operating experience is gained and the available Nicho Norte starter pit operating areas increase”.
  • Oroco Resources Corp. released results from drilling at its Santo Tomas project in Sinaloa. The eight holes completed so far in the North zone and drilling continues, whilst results for the first three holes have been received. Copper grades are comparable to historical grades and confirm the 2009 gradeshell model of Cu > 0.3%, with chalcopyrite and bornite disseminations and veinlets with sparse pyrite. “Sulphide mineralization in the main intersections on the North Zone are hosted in strongly potassic-altered volcanic and intrusive rocks with an overprint of phyllic alteration”. Highlighted core-length intervals comprise 255.0 m @ 0.39% Cu, 100 ppm Mo, 45 ppb Au; 280.1 m @ 0.38% Cu, 120 ppm Mo, 25 ppb Au; 25.5 m @ 0.29% Cu, 150 ppm Mo, 20 ppb Au; 14.3 m @ 0.50 % Cu, 80 ppm Mo, 26 ppb Au; 207.7 m @ 0.39% Cu, 140 ppm Mo, 19 ppb Au; 76.2 m @ 0.18% Cu, 20 ppm Mo, 7 ppb Au.
  • Prime Mining Corp. updated on exploration at its Los Reyes project in Sinaloa. Exploration results during the Q3 2021 include the discovery of Au-Ag mineralization in San Miguel East pit-constrained resource, in addition to near surface mineralization at Las Primas, additional high-grade results at Guadalupe East and strike and depth potential of the Zapote-Tahonitas mineralized structure. The planned phase two drilling program is to comprise 250 new holes and a minimum of 50,000 m.

ON DEALS AND CORPORATE ISSUES

  • Advance Gold Corp. changed its name to Advance Lithium Corp. (Tabasqueña, Zacatecas).
  • Solaris Resources Inc. intends to transfer its non-core assets in Ecuador, Peru, Chile and Mexico, into a newly incorporated subsidiary named Solaris Exploration Inc., while Solaris Resources focuses on the Warintza project in Ecuador (La Verde (60%), Michoacan).
  • Prime Meridian Resources Corp. executed a letter of intent (LOI) to purchase up to 100% interest in La Verde Grande 2,493 ha project in Sonora. “The Company’s plan is to fast-track the exploration and development of the seven currently known Cu-Zn-Ag-Au skarn zones, while evaluating in parallel, the significant opportunity for the discovery of copper porphyry mineralization proximal to those skarn zones”. PMR will make cash payments of US$400 K and payments in shares of US$8 M to acquire up to 100% indirect ownership of the La Verde project, subject to a 2% royalty. Upon completing the US$400 K payment, PMR will have earned 5% indirect ownership of the La Verde project, and further 45% indirect ownership upon issuance of 25 M shares @ CA$0.15 per share. PMR will acquire further 25% indirect interest by issuing an additional US$3 M in shares before the first anniversary. A final 25% indirect interest will be earned by issuing US$2 M in shares before the second anniversary. Of the 2% royalty, 1% can be bought by US$1.0 M.

ON SOCIAL RESPONSIBILITY

  • No relevant news.

On the image below: X marks the spot. Mafic dike on granitic intrusive rock in Sonora. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the Second Week of October, 2021

By Jorge Cirett

During the 41st week of the year (October 11th to October 17th, 2021), at least 25 press releases were announced by companies working in Mexico. To note, six companies posted exploration advances on their properties, six released Q3 reports and one on commencement of mining, two on financing and eight more on project development or resource definition and one more on mining concessions acquisitions. ON MEXICO ISSUES, Mexico’s president presented a proposal to change the law in the energy industry, but also restricting lithium exploration and production to the government. Several other elements could be included in the bill, referred to as “strategic minerals”, without elaborating, although a government party senator named cobalt, niquel, rare earths and even copper. ON EXPLORATION, In Sonora, Benjamin Hill Mining released results from geophysical processing and from fluid inclusion studies that support a buried intrusive source for the mineralization at the Benjamin Hill property; Canuc Resources updated on its deep drilling program at San Javier; Colibri Resources received the permit to drill Evelyn. In Chihuahua, Kootenay silver increased land holdings at its Columba project. In Sinaloa, Vizsla Silver presented drilling results from the Tajitos zone at its Panuco project.   ON MINING, Guanajuato Silver commenced mining at El Cubo, in Guanajuato. First Majestic Silver, Golden Minerals, Gold Resource, Magna Gold, Aura Minerals and Avino Silver & Gold Mines presented its Q3 2021 reports. ON FINANCING, Candelaria Mining informed one of its lenders, Accendo Banco, had its operating permit revoked by Mexican authorities. Xali Gold announced Sun River Gold arranged a financing for US$6.5 M for the tailings project at El Oro, Estado de Mexico. ON RESOURCES AND DEVELOPMENT, GR Silver Mining filed a NI-43-101 technical report on the Plomosas project, Sinaloa. Orla Mining provided an update on the construction of the Camino Rojo Oxide project. Prime Mining released further drilling results from Los Reyes, Sinaloa. Fabled Silver Gold released underground drilling results for Santa Maria, in Chihuahua. GoGold Resources reported results from drilling at El Favor, on its Los Ricos North project located in Jalisco. Golden Tag resources is adding 4,500 m to its 2021 drilling program at San Diego, Durango. Capitan Mining reported results from drilling at El Capitan, in Durango. Zacatecas Silver is drilling the Panuco and Las Cruces areas, at its Zacatecas project, results pending.   ON DEALS AND CORPORATE ISSUES, Argonaut Gold acquired from Fresnillo PLC 4,791 ha in key concessions surrounding its San Agustin mine in Durango. ON SOCIAL RESPONSIBILITY, Minera Media Luna, Peñols, Newmont Peñasquito and Pan American Silver informed on community programs in education and health.

ON MEXICO ISSUES

  • Mexico is far from being a powerhouse in lithium production according to the Statistical Review of World Energy 2021 by BP. Australia, Chile and China hold 81.2% of reserves and 86.5% of lithium production, whereas Argentina, Brazil, Portugal, the United States and Zimbabwe account for 20.5% of reserves and 12.8% of the production. Camimex (Cámara Minera de México) points that the constitutional reform presented by the Mexican president lacks technical support, as even if there are several lithium projects in Mexico, none has proven economic viability. The most visible of these projects, in Sonora, is said to be the largest lithium prospect in the Globe, but its economic viability has still to be proven, as to date there is not a single mine of lithium in clays in the World.
  • Mexico will not grant lithium concessions, said the Mexican president. He stated that even if his electricity reform is not approved by congress, his government has the power to reject any request for a concession to mine lithium. “We will deny any request for a concession to mine lithium and we have the power to do so. We want this to be established in the constitution, lithium belongs to the state”.
  • Nationalistic views with control on “strategic minerals” have been voiced by Morena, the party in power in Mexico. Besides the explicit aim by the President to save all lithium extracting and processing activities for the government, his recent proposal also refers, without elaborating, to be applied in other “strategic minerals”. A senator form Morena mentioned these other minerals could include cobalt, nickel, rare earths and copper, although a spokeswoman from the Economy Secretariat mentioned that the list of strategic minerals was to be provided by the Mexican Geological Survey at a later date.

ON EXPLORATION

  • Canuc Resources Corp. updated on the exploration program at its San Javier project in Sonora. Three holes have been completed and a fourth one is in progress, currently at 922 m of depth and ongoing. Chalcopyrite has been encountered from 302 m and is still visible at 922 m of depth. “The drill hole has intersected a broad zone of variably stockworked and brecciated Barranca sediments with minor andesitic dykes. The Barranca sediments show contact metamorphism from about 461 m and downward, variable amounts of magnetite bearing veinlets, stringers and breccia matrix throughout”. The first two holes intercepted Barranca Formation sedimentary rocks with magnetite veinlets and best intercepts of 2.35 m @ 126 gpt Ag and 2.0 m @ 243 gpt Ag. The third hole was drilled on the Tarahumara Formation volcanic rocks for 500.5 m before being terminated due to drilling problems, intercepting several volcanic lithologies, chalcocite from 38 m of depth and sulfides including chalcopyrite from 332 m. Scattered gold and copper values on short intervals were intercepted, of up to 1.19 gpt Au and 0.41% Cu. Results for the current hole are still pending.
  • Colibri Resource Corp. received the needed permit to drill up to 56 holes at the Evelyn project in Sonora. “The fully funded drill program of up to 10,000 metres is expected to be conducted in two phases”.
  • Kootenay Silver Inc. increased its land holdings at its Columba project in Chihuahua. The company applied for a 10,825 hectare concession, supporting the decision to do so on the high-grade silver intercepts on drilling of the property.
  • Vizsla Silver Corp. presented the results from 23 new drill holes from the Tajitos vein at its Panuco project in Sinaloa. Highlighted true width intercepts comprise 1.38 m @ 1.16 gpt Au, 79 gpt Ag; 1.34 m @ 7.94 gpt Au, 960 gpt Ag; 0.70 m @ 4.16 gpt Au, 2,082 gpt Ag; 2.15 m @ 1.09 gpt Au, 188 gpt Ag; 1.38 m @ 2.83 gpt Au, 527 gpt Ag; 8.7 m @ 0.51 gpt Au, 99 gpt Ag; 1.99 m @ 2.46 gpt Au, 615 gpt Ag; 0.86 m @ 3.37 gpt Au, 315 gpt Ag; 1.39 m @ 3.26 gpt Au, 73 gpt Ag; 1.3 m @ 2.47 gpt Au, 600 gpt Ag; 1.50 m @ 9.90 gpt Au, 2,607 gpt Ag; 0.7 m @ 5.73 gpt Au, 1,115 gpt Ag; 4.38 m @ 1.62 gpt Au, 216 gpt Ag. The footprint of the Tajitos zone has been recognized for 800 m along strike and 300 m of depth.
  • Benjamin Hill Mining Corp. informed the seven kilometer long trend of epithermal mineralization at its Benjamin Hill project in Sonora is related to a well-defined magnetic anomaly. A magnetic high more than 12 kilometers long and 4 km wide lies beneath the surface, crossing the property in a N-NE orientation, with the Au-Cu mineralization parallel to the crest of the magnetic high.  “Our hypothesis explains that the magnetic anomaly corresponds to a partially exhumed fertile pluton. We suggest the mineralization seen at surface was driven by the heat engine of a buried pluton providing hydrothermal fluids that formed mineralized tabular bodies enriched with Au, Ag, and Cu (i.e. veins and breccias), as well as fluids that caused hydrothermal alteration halos (phyllic, epidote-magnetite and argillic alteration)…”.
  • Mammoth Resources Corp. updated on drilling at its Tenoriba project in Chihuahua. The company informed heavy rainfall during August and September is subduing by now, and that they expect an increase in the drilling rate that produced only 420 m of core in 8 weeks. “Mammoth intends to initially drill 2 – 4 holes within each target zone then move to another target zone to drill a similar number of holes”. Results on the first holes are pending.
  • Benjamin Hill Mining Corp. informed on results of fluid inclusion studies at its Benjamin Hill property in Sonora. The salinity and homogenization temperatures point to an epithermal system with an overprinting magmatic influence, and exhumation depths  between 150 m and 750 m in the mineralized structures. “This observation combined with recent geophysical data, supports the hypothesis of the existence of a mineralized plutonic source with a high possibility for Au-Cu metallic enrichment and porphyry potential”.

ON MINING

  • Guanajuato Silver Company Ltd. commenced to process silver-gold ore at its El Cubo mine and mill in Guanajuato. Prior to the start of mill operations, 20 K tonnes of material from El Cubo were mined and stockpiled, to be processed at 750 tonnes per day (tpd) in the plant with a capacity for 1,500 tpd, or over 500 K tonnes per year.
  • First Majestic Silver Corp. presented production results for the third quarte 2021, including figures from its three Mexican operations. At San Dimas, Durango, 214.2 K tonnes were processed at a rate of 2,328 tpd and a grade of 289 gpt Ag, 3.14 gpt Au, recovering 95% Ag, 96% Au to produce 20,767 Oz Au, 1.89 M Oz Ag. At Santa Elena in Sonora 234.9 K tonnes were processed grading 74 gpt Ag, 1.04 gpt Au, recovering 91% Ag, 96% Au to produce 508.6 K Oz Ag, 7,498 Oz Au. At La Encantada in Coahuila, 263.6 K tonnes were processed grading 134 gpt Ag, 0.02 gpt Au, recovering 80% Ag, 90% Au to produce 905 K Oz Ag, 114 Oz Au.
  • Golden Minerals Co. reported third quarter 2021 production from its Rodeo mine in Durango. The mill processed an average of 532 tpd at a grade of 4.0 gpt Au, recovering 76.5% Au to produce 4,777 Oz Au, 12,196 Oz Ag. Golden’s guidance for 2021 continues between 12 K – 14 K Oz Au and 25 K – 30 K Oz Ag.
  • Gold Resource Corp. presented preliminary third quarter 2021 production results. At its Arista mine in Oaxaca 98 K tonnes were milled at a rate of 1,353 tpd, grading 2.68 gpt Au, 91 gpt Ag, 0.37% Cu, 2.3% Pb, 4.8% Zn, to produce 6,933 Oz Au, 265.8 K Oz Ag, 1,808 tonnes Pb, 3,920 tonnes Zn. The cash cost per AuEq Oz was between $250-$290 and the AISC per AuEq Oz between $250-$290.
  • Magna Gold Corp. reported Q3 2021 production results. At San Francisco, in Sonora, 1.72 M tonnes were mined @ 0.46 gpt Au, and 4.52 M tonnes of waste moved (2.62 strip ratio), 1.76 M tonnes were processed @ 0.45 gpt Au, with 25,663 Oz Au placed in the pads to produce 19,102 Oz Au, 7,115 Oz Ag. The guidance for the year remains at 55-65 K Oz Au.
  • Aura Minerals Inc. announced preliminary production results for the third quarter of 2021, including figures from its Mexican operations. At Aranzazu, in Zacatecas, Aura produced 6,404 Oz Au, 106.1 K Oz Ag, 8.15 M Lb Cu, or 26,745 Oz AuEq.
  • Avino Silver & Gold Mines Ltd. released its production report for the third quarter 2021. The Avino mine in Durango successfully recommenced operations at a 1,000 to 1,500 tpd rate (with a 2,500 tpd plant capacity) with 58.2 K tonnes produced, 61,8 K tonnes processed (with aid of some stock piled material) grading 48 gpt Ag, 0.83 gpt Au, 0.58% Cu, recovering 86% Ag, 75% Au, 85% Cu to produce 77.9 K Oz Ag, 1,183 Oz Au, 685.5 K tonnes Cu.

ON FINANCING

  • Candelaria mining Corp. informed one of its lenders, Accendo Banco S.A. had its authorization to operate as a banking institution revoked by the Mexican National Banking and Securities Commission. “The Company has a US$9.0 million loan facility in place with Accendo and to date has drawn US$1.5 million under the loan facility. The Company anticipates that its ability to draw any further funds from its loan facility with Accendo may be impaired by these developments.” (Pinos, Zacatecas).
  • Xali Gold Corp. announced that Sun River Gold has arranged a financing of US$6.5 M to build an put in operation the tailings reprocessing operation at El Oro, Estado de México. “Sun River has the option to acquire 100% of the Tailings Project from Minera CCM by making staged payments totalling US$500,000 (paid), bring the tailings into commercial production by October 31, 2021 (extended to March 31, 2022 due to COVID), and grant to the Company a 5% NPI, Life of Mine royalty (the “Candente Royalty”) as well as the Municipality’s 8% NPI on production from the properties” (El dorado, Nayarit).

ON RESOURCES AND DEVELOPMENT

  • GR Silver Mining Ltd. filed a technical report on the Plomosas project, in Sinaloa. The report envisages 3.4 M Oz Ag, 53 K Oz Au, 73 M Lb Zn, 48 M Lb Pb (10.3 M Oz AgEq) in indicated resources and 8.6 M Oz Ag, 85 K Oz Au, 149 M Lb Zn, 116 M Lb Pb (21.0 M Oz AgEq) in inferred resources. The report includes information from over 100,000 meters of drilling in 476 historic and 80 new drill holes. A 14,000 meters drilling program with seven rigs is in progress.
  • Orla Mining Ltd. provided a construction update for the Camino Rojo Oxide project in Zacatecas. To date Camino Rojo is 89% complete with the ramp up of mining operations according to plan, and the crushing and conveying system, reclaim tunnel, overland conveyor and grasshopper conveyors completed. The Merrill-Crowe plant and refinery are 98% complete. In the year 757.1 K tonnes have been mined at a grade of 0.86 gpt Au, of which 511.2 K tonnes have been crushed and 220.2 K tonnes stacked.
  • Prime Mining Corp. informed on further drilling results from its Los Reyes project in Sinaloa. Highlighted true width (TW) intercepts comprise 11.8 m @ 6.12 gpt Au, 62 gpt Ag, (including 5.5 m @ 12.02 gpt Au, 61 gpt Ag); 13.1 m @ 3.36 gpt Au, 83 gpt Ag; 13.2 m @ 2.18 gpt Au, 31 gpt Ag; 8.4 m @ 2.85 gpt Au, 31 gpt Ag; 1.4 m @ 3.89 gpt Au, 13 gpt Ag in the Zapote South step out holes, and 3.8 m @ 14.51 gpt Au, 82 gpt Ag; 2.2 m @ 3.96 gpt Au, 9 gpt Ag; 2.1 m @ 5.55 gpt Au, 164 gpt Ag; 2.90 m @ 2.07 gpt Au, 248 gpt Ag; 3.9 m @ 1.90 gpt Au, 78 gpt Ag; 0.9 m @ 3.86 gpt Au, 448 gpt Ag; 4.0 m @ 1.55 gpt Au, 230 gpt Ag in the Tahonitas step out drilling. The boiling level at Zapote, with its corresponding higher grades, has been identified 50 m below previous reports, expanding the exploration targets.
  • Fabled Silver Gold Corp. released further assay results from its Santa Maria property in Chihuahua. The underground drilling was successful in intersecting a geochemically anomalous intrusive rock with a 54.6 m interval grading 0.02 gpt Au, 9 gpt Ag (including three intervals 1.5, 1.5 and 1.2 m in width grading 20, 21 and 23 gpt Ag respectively) and another hole returning 4.5 m @ 13 gpt Ag.
  • GoGold Resources Inc. reported results of 10 new holes from El Favor east zone, extending the mineralized strike by over 450 meters at its Los Ricos North project in Jalisco. Some of the core-length intervals intercepted comprise 27.0 m @ 0.44 gpt Au, 64 gpt Ag; 3.0 m @ 0.51 gpt Au, 86 gpt Ag; 22.3 m @ 0.31 gpt Au, 118 gpt Ag (including 1.0 m @ 3.96 gpt Au, 944 gpt Ag); 7.7 m @ 0.46 gpt Au, 147 gpt Ag; 24.2 m @ 0.45 gpt Au, 105 gpt Ag (including 2.0 m @ 4.16 gpt Au, 794 gpt Ag); 6.1 m @ 1.32 gpt Au, 328 gpt Ag; 2.1 m @ 0.63 gpt Au, 179 gpt Ag; 11.4 m @ 0.26 gpt Au, 136 gpt Ag (including 6.0 m @ 0.38 gpt Au, 179 gpt Ag); 20.1 m @ 0.22 gpt Au, 68 gpt Ag (including 1.0 m @ 2.59 gpt Au, 563 gpt Ag); 18.3 m @ 0.30 gpt Au, 98 gpt Ag (including 5.6 m @ 0.90 gpt Au, 255 gpt Ag). El Favor East mineralization is now known for 900 m, of which 600 m have been drilled.
  • Golden Tag Resources Ltd. announced the addition of 4,500 meters of diamond drilling to its exploration program for 2021 at its San Diego project in Durango. That meterage is in addition to the 4,716 meters already sunk and reported in 2021.   The program discovered epithermal mineralization near the surface, the following are some selected core-length intervals: 273.65 m @ 0.10 gpt Au, 43 gpt Ag, 0.2% Pb, 0.3% Zn (76 gpt AgEq); 50.17 m @ 0.05 gpt Au, 31 gpt Ag, 0.9% Pb, 0.7% Zn; 99.53 m @ 0.09 gpt Au, 27 gpt Ag, 0.7% Pb, 0.6% Zn; 25.55 m @ 0.08 gpt Au, 37 gpt Ag, 0.3% Pb, 0.6% Zn; 86.64 m @ 0.03 gpt Au, 39 gpt Ag, 0.9% Pb, 0.6% Zn; 169.83 m @ 0.04 gpt Au, 32 gpt Ag, 0.6% Pb, 0.8% Zn; 116.45 m @ 0.03 gpt Au, 42 gpt Ag, 0.6% Pb, 0.7% Zn; 134.37 m @ 0.13 gpt Au, 20 gpt Ag, 0.6% Pb, 0.7% Zn; 191.57 m @ 0.04 gpt Au, 35 gpt Ag, 0.8% Pb, 0.8% Zn.
  • Capitan Mining Inc. reported results form five reverse circulation (RC) drill holes at El Capitan, in Durango. Highlighted core length intervals comprise 6.1 m @ 0.15 gpt Au; 13.7 m @ 0.32 gpt Au; 44.2 m @ 0.13 gpt Au, 3 gpt Ag; 6.1 m @ 0.12 gpt Au, 5 gpt Ag; 10.7 m @ 0.12 gpt Au, 27.4 m @ 0.23 gpt Au; 62.5 m @ 0.38 gpt Au, 4 gpt Ag; 35.1 m @ 0.14 gpt Au; 21.3 m @ 0.19 gpt Au; 18.3 m @ 0.15 gpt Au; 6.1 m @ 0.29 gpt Au; 13.7 m @ 0.39 gpt Au, 4 gpt Ag; 85.3 m @ 0.16 gpt Au; 19.8 m @ 0.15 gpt Au, 4 gpt Ag.
  • Zacatecas Silver Corp. provided an update on the drilling program at Panuco, within its Zacatecas property in Zacatecas. Four drill holes were completed for a total of 1,088m at Panuco, while two more were completed at Las Cruces vein system and one more is ongoing. Results are pending.

ON DEALS AND CORPORATE ISSUES

  • Argonaut Gold Inc. has acquired key mineral concessions from Fresnillo PLC for a cash consideration of US$5.75 M. The acquired package comprises a 4,791-ha concession and four key small concessions totalling 27 ha, which will allow Argonaut to expand the pit, increase mineral reserves and extend mine life.

ON SOCIAL RESPONSIBILITY

  • Minera Media Luna informed on educational programs presented at communities in Guerrero.
  • Peñoles presented its company-wide water saving strategy on all its activities.
  • Newmont Peñasquito updated on activities with positive results in near-by communities.
  • Panamerican Silver informed on community health programs near its La Colorada mine in Zacatecas.

On the image below: Galena bearing milky quartz vein 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, 2021

By Jorge Cirett

During the 34th week of the year (August 30th to September 5th, 2021), at least 21 press releases were announced by companies working in Mexico. To note, four companies posted exploration advances on their properties, four posted on mining or quarterly reports, seven on financing or shares and four more on project development or resource definition. ON MEXICO ISSUES, Camimex informed on direct and indirect employment generated by the mining industry. In 2020, Mexico was the top silver producer in the world. Sixty percent of foreign held mining projects are idle. Mexico is the ninth top producer of gold in the world, with 41.3 tonnes produced in 2020. ON EXPLORATION, in Chihuahua, Monarca Minerals completed the first two RC holes at San Jose. In Sinaloa, Vizsla Silver released results from 19 holes on the Naploleon area of the Panuco project. Durango, Canasil Resources released results from two diamond holes at Nora. In Guanajuato, Guanajuato Silver informed drilling continues at Pinguico.  ON MINING, Altaley Mining and Santacruz Silver reported second quarter 2021 results. Torex Gold released its multi-year production outlook for el Limon Guajes complex, aiming to produce 1.59 to 1.75 M Oz Au in 2021-2024. Guanajuato Silver commenced infill drilling at El Cubo. ON FINANCING, Prime Mining reported the exercise of warrants for C$9.5 M; Silver Spruce announced a financing round for up to $1 M; Mithril plans to raise up to A$3.3 M. Silver Wolf shares are now eligible for electronic clearing in the USA. SilverCrest completed the second scheduled drawdown of US$30 M. Candelaria Mining announced a non-brokered private placement for $7.8 M, on which Agnico Eagle subscribed for a $6 M consideration. ON RESOURCES AND DEVELOPMENT, Cheasapeake Gold filed a NI43-101 report on the Metates heap leach project. Zacatecas Silver is to commence drilling at Panuco. Sonora Gold reported surface assay results from Cerro Caliche. GR Silver Mining commenced 1,500 m of underground resource expansion drilling at San Marcial. ON DEALS AND CORPORATE ISSUES, No relevant news. ON SOCIAL RESPONSIBILITY, Torex Gold, Autlán, Industrias Peñoles, Fortuna Silver and Almaden Minerals informed on social responsibility actions by the companies on communities and society.

ON MEXICO ISSUES

  • Camimex (Cámara Minera de México) informed that during the first half of 2021 the mining industry generated 40,895 new direct jobs and more than 2 million new indirect jobs, boasting salaries 36% higher than the national average.  Also, during 2020 the industry invested US$3,532 M (US$3.5 billion, in American notation) and is posed to invest further US$5,034 M (US$5 billion in American notation) in 2021 and a total of more than US$24,000 M (US$24 billion in American notation) in the next six years.  
  • Mexico was the top producer of silver in the world in 2020, with 5,541 tonnes, China and Peru stand in the second and third place producing 3,443 tonnes and 2,991 tonnes respectively.
  • There are 1,190 mining projects funded by foreign capital in Mexico, but 6 of each 10 are idle, regardless of the increase in metal prices. Of the 1,190 projects, 754 are idle, 307 in exploration, 78 in production, 43 in development and 8 have closed. One of the issues affecting the mining industry in Mexico is the fiscal load, with taxes on profit of 52.7%, same tax burden that in other countries is lower: USA 30.2%, Canada 34.6%, Chile 35.7%, Peru 39.9%.
  • Mexico is the ninth producer of gold in the world, tied with Uzbekistan. Gold production during the first half of 2021 was 41,325 kg, which is 30% higher than a year before. This is the first yearly increase in gold production since the historic high of 2015, when 60,325 kg were produced. Sonora produced 29.8% of the total amount, Zacatecas 18.8% and Chihuahua 16.1%. Five companies produced almost 60% of the total, Fresnillo PLC, Newmont (Peñasquito), Torex Gold, Agnico Eagle and Alamos Gold.

ON EXPLORATION

  • Monarca Minerals Inc. informed on the completion of the first two drill holes at the San Jose project in Chihuahua. Both RC holes intersected endoskarn and exoskarn mineralization with pyrite and fine grained sulfides (probably galena and sphalerite) and local chalcopyrite. Both holes targeted geophysical anomalies.
  • Canasil Resources Inc. released results from the second and third holes of the 2021 drill program at Nora, in Durango. Highlighted true-width intervals comprise 7.18 m @ 2.05 gpt Au, 344 gpt Ag, 0.4% Pb, 0.8% Zn (including 1.87 m @ 4.42 gpt Au, 541 gpt Ag, 0.9% Pb, 1.9% Zn and 0.94 m @ 2.92 gpt Au, 766 gpt Ag, 1.0% Pb, 2.1% Zn); 0.94 m @ 5.91 gpt Au, 316 gpt Ag, 0.8% Pb, 1.7% Zn; 0.94 m @ 7.0 gpt Au, 279 gpt Ag; 0.94 m @ 2.13 gpt, 203 gpt Ag; 5.33 m @ 1.14 gpt Au, 157 gpt Ag (including 1.85 m @ 2.45 gpt Au, 284 gpt Ag); 1.36 m @ 1.30 gpt Au, 302 gpt Ag; 3.29 m @ 6.44 gpt Au, 884 gpt Ag, 0.2% Zn; 0.90 m @ 1.65 gpt Au, 431 gpt Ag, 0.1% Zn; 1.53 m @ 20.59 gpt Au, 1,290 gpt Ag, 0.1% Pb, 0.3% Zn; 2.71 m @ 2.76 gpt Au, 250 gpt Ag, 0.1% Zn. “Gold-silver mineralization is hosted within two structurally-controlled epithermal veins, Candy and Nora… The fault structure hosting the Candy vein has been traced for a distance of over 3 km…. The second vein, Nora, is found 600 metres northeast of the Candy vein and can be traced for 230 metres with widths of over 9.0 metres”.
  • Vizsla Silver Corp. released the results from 19 new holes targeting the Napoleon vein resource area at its Panuco project in Sinaloa. Highlighted true-width results comprise 1.46 m @ 10.74 gpt Au, 188 gpt Ag, 1.3% Pb, 3.5% Zn; 3.01 m @ 3.62 gpt Au, 40 gpt Ag, 0.8% Pb, 4.0% Zn; 3.40 m @ 3.10 gpt Au, 110 gpt Ag, 1.2% Pb, 1.1% Zn; 1.40 m @ 6.49 gpt Au, 114 gpt Ag, 0.8% Pb, 8.0% Zn; 5.93 m @ 11.35 gpt Au, 185 gpt Ag, 0.5% Pb, 2.2% Zn; 6.33 m @ 1.79 gpt Au, 52 gpt Ag, 0.2% Pb, 1.1% Zn. To date 105 holes on the Napoleon resource area define an average vein width of 3.5 m @ 3.11 gpt Au, 161 gpt Ag, 0.45% Pb, 1.3% Zn. A maiden resource estimate is planned for Q1 2022.
  • Guanajuato Silver Company Ltd. informed that drilling continues at El Pinguico project in Guanajuato.

ON MINING

  • Altaley Mining Corp. released its financial and operating results for Q2 2021. At Campo Morado, Guerrero, the company processed 164 K tonnes at 1,803 tonnes per day, grading 4.5% Zn, 0.34% Cu, 129 gpt Ag, 1.16 gpt Au, recovering 74% Zn, 31% Pb, at cash cost $0.48per Lb Zn and an AISC of $0.77 per Lb Zn.
  • Santacruz Silver Mining Ltd. reported its financial and operating results for the second quarter 2021. The company operating the Zimapan and Rosario mines in Hidalgo and San Lusi Potosi respectively, processed 172.3 K tonnes to produce 799 K Oz Ag at cash cost $55.48 per tonne, cash cost $19.87 per Oz Ag, an AISC of $23.74 per Oz Ag. Revenue increased to $13.7 M and gross profits to $3.8 M.
  • Torex Gold Resources Inc. informed on the multi-year outlook for production at its El Limon Guajes mining complex in Guerrero. Torex plans to produce at El Limon Guajes 430-470 K Oz Au in 2021, 430-470 K Oz Au in 2021, 400-450 K Oz Au in 2023 and 330-350 K Oz Au in 2024 (1.59-1.74 M Oz Au, total). “The current production outlook assumes production from the ELG open pits through mid-2024, and stable production from the ELG Underground through to at least the end of 2024 and likely longer based on exploration results”.
  • Guanajuato Silver Company Ltd. announced that infill and expansion drilling has commenced at its El Cubo mine in Guanajuato.

ON FINANCING

  • Prime Mining Corp.  reports the exercising of warrants for gross proceeds of C$9.52 M, resulting in a cash position of C$31.9 M. “From the 15,000 metre (“m”) Phase 1 diamond drill program at Los Reyes completed in June 2021, 29 unreported holes are expected to be released in the coming weeks” (Los Reyes, Sinaloa).
  • Silver Wolf Exploration Ltd. announced its shares are now eligible for electronic clearing and settlement in the United States (Ana Maria, Durango).
  • SilverCrest Metals Inc. announced the completion of the second scheduled drawdown of US$30 M on its previously announced US$120 Million project financing facility with an affiliate of RK Mine Finance (Las Chispas, Sonora).
  • Silver Spruce Resources Inc. announced a private placement to gather up to $1 M (El Mezquite, Sonora).
  • Candelaria Mining Corp. announced a non-brokered private placement geared to raise up to $7.8 M in gross proceeds (Caballo Blanco, Veracruz).
  • Agnico Eagle Mines Ltd. is subscribing 13.333 M units of Candelaria Mining Corp., for a total consideration of $6 M. On closing of the private placement, Agnico is to own 15.94% of the issued and outstanding shares of Candelaria (Pinos Altos, Chihuahua).
  • Mithril Resources Ltd. Is planning to raise up to A$3.3 M through a share placement (Coplaquin, Durango).

ON RESOURCES AND DEVELOPMENT

  • Chesapeake Gold Corp. filed a NI-43-101 technical report on the Metates sulfide heap leach project in Durango. The company has shipped selected drill core samples for metallurgical testing in Vancouver. “The Company will prioritize the intrusive and intrusive breccia portions of the Metates orebody with results of the testwork to be released on an ongoing basis. First results are expected in earlyQ1 2022”.
  • Zacatecas Silver Corp. informed drilling to commence at the Panuco deposit and San Gill breccia zone on its Zacatecas Silver project. The Phase One program is to include 10,000 m of drilling. “A total of three veins will be drilled — Panuco NW, Panuco Central and Tres Cruces — which remain open at depth and along strike. These are high-priority drill targets”.
  • Sonoro Gold Corp. reported assay results from surface sampling at its Cerro Caliche project in Sonora. “Surface rock samples were collected from several well-defined vein and gold mineralized structures by channel sampling perpendicular across measured veins and wall rocks with sample lengths ranging from 0.4 to 2.0 meters. Assay results from 17 samples returned grades between 2.5 and 14.3 grams of gold per tonne”. These assays are from extensions to significant structural corridors at the Buena Suerte and El Colorado zones.
  • GR Silver Mining Ltd. commenced the initial 1,500 m underground resource expansion diamond drill program at San Marcial, in Sinaloa. The program will test down-dip and along strike extensions to the existing NI-43-101 resource and new targets defined by a recent geophysical program.

ON DEALS AND CORPORATE ISSUES

  • No Relevant News.

ON SOCIAL RESPONSIBILITY

  • Minera Media Luna (Torex Gold) informed on medical supplies to some communities in Guerrero.
  • Autlán received for second consecutive year the Ethics and Values award granted by CONCAMIN (Confederación de Cámaras Industriales).
  • Peñoles received the Ethics and Values, and the Health and Wellbeing awards granted by CONCAMIN (Confederación de Cámaras Industriales).
  • Minera Cuzcatlán (Fortuna Silver) informed on aid to local communities near its San José mine in Oaxaca.
  • Fresnillo and Industrias Peñoles informed on aid to communities and organizations thorough the country.
  • Minera Gorrión (Alamaden Minerals informed on the way it is letting the communities know about its current drilling program in Puebla.

On the image below:  Low sulfidation epithermal quartz veining from a project in northern Sonora. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the Third Week of August, 2021

By Jorge Cirett

During the 33rd week of the year (August 16th to August 22nd, 2021), at least 22 press releases were announced by companies working in Mexico. To note, four companies posted exploration advances on their properties, four posted on mining/quarterly reports, two on mining issues, four on financing or shares  and five more on project development or resource definition and one more on a property acquisition. ON MEXICO ISSUES, No relevant news. ON EXPLORATION, in Sonora, Aloro Mining informed on continuation of drilling at Los Venados. In Chihuahua, Radius Gold announced one more drilling campaign at Amalia. In Sinaloa, Vizsla Silver updated on exploration at Panuco. In Nayarit, Xali Gold submitted drilling applications for El Dorado.    ON MINING, Americas Gold and Silver, Prime Mining, First Majestic Silver, and Impact Silver presented second quarter 2021 reports. Mexus Gold shipped its first activated carbon. Gold Resource halted activities due to increase in COVID cases among its workforce. ON FINANCING, Candelaria Mining will not complete the proposed private placement. Galore Resources is to extend the expiry date of some warrants. Kootenay Silver is to spin-out its Canadian assets into another company. Magna Gold closed the previously announced private placement for C$10 M. ON RESOURCES AND DEVELOPMENT, Sierra Metals announced a 10,000 tpd PEA for its Bolivar mine in Chihuahua. Fabled Silver Gold released more results from drilling at Santa Maria. Excellon Resources released high grade Ag-Pb-Zn drilling results from Platosa. GoGold Resources informed on results of drilling at the Casados deposit at Los Ricos project. Sonoro Gold reported results of metallurgical tests at Cerro Caliche.  ON DEALS AND CORPORATE ISSUES, Starcore International Mines acquired the Tecouitla claims in Sonora. ON SOCIAL RESPONSIBILITY, No relevant news.

ON MEXICO ISSUES

  • No relevant news.

ON EXPLORATION

  • Xali Gold Corp. informed exploration permit applications have been submitted for El Dorado project in Nayarit. The plus 2,000 m program envisaged will test potential lateral extensions to high-grade zones to better define plunging mineralization shoots, and collection of a bulk sample from El Hundido mine.
  • Radius Gold Inc. announced that the phase five drilling campaign has commenced at its Amalia project in Chihuahua. Pan American Silver Corp., the project operator plans to deploy a second rig to test El Cuervo target.
  • Aloro Mining Corp. informed that Alamos Gold Inc. is to resume the reconnaissance drill program on the Los Venados claims in Sonora. Alamos has already exceeded its first year exploration commitment; the current program is focused on outcropping low sulfidation epithermal mineralization.
  • Vizsla Silver Corp. provided an update on its Panuco project in Sinaloa. Due to the current rise in Covid cases in Sinaloa, Vizsla will keep the current pause in activities at the property until the end of the month, and then gradually increase activities through September. Resource drilling is being done at Napoleon (950 x 350 m area) and Tajitos (550 m x 300 m area), exploration drilling is testing the Napoleon, Cinco Señores, Cordon de Oro and Animas Corridors. Preliminary metallurgical testing is being done on Napoleon vein material, and geotechnical and hydrogeological studies are being conducted. Drilling programmed for the remainder of 2021 comprises 35,000 m.  

ON MINING

  • Americas Gold and Silver Corp. reported second quarter 2021 consolidated financial and operational results. For Mexico, the company reported that it “signed an agreement with the Mexican Ministries of Economy, Interior and Labour along with union representatives committing to a re‐opening at the Cosalá Operations.    The agreement contemplates immediate right to possession of the property with joint inspections coordinated by the Ministry of Labor, so that the mine and mill can re‐start operations in a safe and sustainable manner”. (Note from writer. – The mine was paralyzed by a dispute between two unions over a year ago, with strong political connotations).
  • Prime Mining Corp. reported its operational and financial results for the fourth quarter of fiscal year 2021, end in April 2021. During April the company completed a private placement for gross proceeds of CAN$28.75 M. Also in the period, drilling at Los Reyes in Sinaloa intersected up to 20.1 m @ 3.25 gpt Au, 389 gpt Ag, 3.8 m @ 3.69 gpt Au, 305 gpt Ag, 4.5 m @ 8.95 gpt Au, 74 gpt Ag; 18.7 m @ 1.96 gpt Au, 63 gpt Ag; 39.0 m @ 0.7 gpt Au, 29 gpt Ag. Cash at the end of the period stood at Can$32 M.
  • First Majestic Silver Corp. announced the consolidated financial results for the second quarter 2021. During the period the company processed 826.2 K tonnes, to produce 3.27 M Oz Ag, or 6.43 Oz AgEq at $13.89 per Oz AgEq and an AISC of $19.42 per Oz AgEq. In Mexico, the production came from San Dimas, in Durango, La Encantada, in Coahuila, and Santa Elena, in Sonora.
  • Mexus Gold US. confirmed the first shipment of activated carbon from its Santa Elena mining operation in Sonora (Not to mistake with First Majestic’s Santa Elena mine, also in Sonora).
  • Gold Resource Corp. informed that as result of a steep climb in COVID-19 infections, the company is reducing its activities at the Don David mine in Oaxaca. The measure is to last for at least ten days. “The operations will continue with those employees and contractors who have agreed to stay in the camp for periods longer than the usual rotation to create a bubble”.
  • Impact Silver Corp. announced its financial and operational results for the second quarter 2021. The cash balance at the end of the quarter was $22.4 M. The mill processed 37.8 K tonnes @ 147 gpt Ag to produce 150.3 K Oz Ag. Some results of its ongoing 10,000 m drilling campaign include 9.8 m @ 211 gpt Ag and 13.85 m @ 186 gpt Ag.

ON FINANCING

  • Candelaria Mining Corp. informed that the company will not be proceeding with the proposed brokered private placement previously announced (Pinos, Zacatecas, Guerrero).
  • Galore Resources Inc. proposed to extend the expiry date of 5.6 M share purchase warrants from September 2021 to September 2024 (Dos Santos, Zacatecas).
  • Kootenay Silver Inc. board approved a spin-out of 80% of its Canadian exploration assets. Once the arrangement becomes effective, Kootenay shareholders will own shares in two public companies, one focusing in Mexico and the other in Canada (Columba, Chihuahua).
  • Magna Gold Corp. closed the previously announced private placement of C$10 M convertible debentures (San Francisco, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Sierra Metals Inc. announced a 10 K tonnes per day positive preliminary economic assessment (PEA) to include iron ore production at its Bolivar mine in Chihuahua. The report envisages an updated after-tax net present value (NPV) of US$361 M at an 8% discount rate, an IRR of 27.9%, net after-tax cash flow of US$650 M with a life of mine (LOM) copper grade of 0.72% and iron ore at 13.5%, an operating cost of US$25.62/tonne and US$1.50 per Lb CuEq, to produce 55 M Lb Cu in 14 years. Current indicated resources stand at 19.4 M tonnes @ 0.77% Cu, 15.1 gpt Ag, 0.21 gpt Au, 13.8% Fe, containing 149.1 K tonnes Cu, 9.4 M Oz Ag, 127.8 K Oz Au, and inferred resources at 21.4 M tonnes @ 0.78% Cu, 14.2 gpt Ag, 0.21 gpt Au, containing 167.1 K tonnes Cu, 9.8 M Oz Ag, 145.6 K Oz Au.
  • Fabled Silver Gold Corp. announced more results from surface drilling at its Santa Maria project in Chihuahua. Highlighted core length intervals comprise 0.85 m @ 0.98 gpt Au, 10 gpt Ag; 0.80 m @ 0.09 gpt Au, 63 gpt Ag, 0.3% Pb, 0.6% Zn; 20.10 m @ 0.18 gpt Au, 35 gpt Ag, 1.1% Pb, 0.7% Zn, 0.09% Cu (including 5.90 m @ 0.30 gpt Au, 97 gpt Ag, 3.3% Pb, 1.5% Zn, 0.25% Cu).
  • Excellon Resources Inc. released results from underground drilling at Platosa, in Durango. Some of the highlighted core length intervals: 3.0 m @ 227 gpt Ag, 2.3% Pb, 2.0% Zn, 0.1 gpt Au; 1.3 m @ 360 gpt Ag, 10.1% Pb, 10.2% Zn; 1.3 m @ 692 gpt Ag, 9.3% Pb, 6.3% Zn; 1.2 m @ 544 gpt Ag, 5.9% Pb, 3.9% Zn; 1.6 m @ 1,647 gpt Ag, 12.3% Pb, 11.6% Zn, 0.1gpt Au; 5.2 m @ 1,051 gpt Ag, 12.1% Pb, 13.1% Zn, 0.2 gpt Au (including 2.3 m @ 1,985 gpt Ag, 22.8% Pb, 17.2% Zn); 2.5 m @ 784 gpt Ag, 7.7% Pb, 13.9% Zn, 0.3 gpt Au; 3.1 m @ 581 gpt Ag, 5.7% Pb, 11.4% Zn, 0.1 gpt Au; 1.4 m @ 1,050 gpt Ag, 3.4 % Pb, 2.0% Zn; 3.1 m @ 289 gpt Ag, 2.2% Pb, 3.7% Zn. “Drilling from underground continues to define and expand known mineralization ahead of production at the 623, NE-1 and NE-1S Mantos. Most significantly, drilling into the 623 and NE-1 Mantos continues to improve understanding and confidence, and extend mineralization in these areas”.
  • GoGold Resources Inc. informed on results from seven drill holes at the Casados deposit at the Los Ricos North project in Jalisco. Highlighted core length intervals: 19.0 m @ 0.54 gpt Au, 131 gpt Ag (including 1.3 m @ 5.16 gpt Au, 1,319 gpt Ag); 9.5 m @ 0.50 gpt Au, 233 gpt Ag; 41.6 m @ 1.25 gpt Au, 218 gpt Ag (including 8.9 m @ 4.71 gpt Au, 698 gpt Ag); 19.2 m @ 0.53 gpt Au, 185 gpt Ag (including 8.5 m @ 1.14 gpt Au, 594 gpt Ag); 8.2 m @ 0.26 gpt Au, 82 gpt Ag. “The Casados Veins strike nearly E-W, dips 45o to the north and is hosted in andesitic tuffs and is exposed on surface for about 400 metres along strike…… A zone of silicification up to 50 metres wide envelopes the vein and this resistant outcrop forms a steep ridge along the strike of the vein, particularly on the north or hanging wall side”.
  • Sonoro Gold Corp. reported results from metallurgical tests on mineralized material from Cerro Caliche in Sonora. The column metallurgical test returned an average of 74% recovery of gold for the 80% minus 12.5 mm feed material. The 4.7 tonnes sample was obtained from ten PQ (8.5 cm diameter) holes totaling 428 lineal meters. Little to no sulfur and organic carbon were observed on the testing. “There were no obvious variations in gold recovery related to ore zone or material type (vein breccia vs. stock work)”.

ON DEALS AND CORPORATE ISSUES

  • Starcore International Mines Ltd. informed on the acquisition of the 3,088 hectares Tecoutila claims from Minera Tecouitla, S.A. de C.V.. Previous exploration in the property reported nine veins with lengths of up to 2.1 Km, widths of 0.5 to 1.1 m and grades of up to 10.30 gpt Au, 241 gpt Ag.

ON SOCIAL RESPONSIBILITY

  • No relevant news.

On the image below:  Workings and vein trace on a project in northern Sonora. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the Fourth Week of July, 2021

By Jorge Cirett

During the 29th week of the year (July 19th to July 25th, 2021), at least 19 press releases were announced by companies working in Mexico. To note, two companies posted exploration advances on their properties, two on quarterly reports and one in reopening plans, two on financing news, five more on project development or resource definition and two posted on deals or corporate issues. ON MEXICO ISSUES, no relevant news. ON EXPLORATION, in Sonora, Silver Spruce added a second rig to Drilling at El Diamante. In Chihuahua, Mammoth Resources informed on drill targeting at Tenoriba.  ON MINING, Fortuna Silver and Excellon Resources released Q2 2021 reports. Americas Gold and Silver updated on the re-opening plan at its Cosalá operations. ON FINANCING, Altaley Mining executed a 12 M loan agreement for the development of Tahuehueto. ON RESOURCES AND DEVELOPMENT, Mexican Gold Mining continues work on Cerro Las Minitas PEA. Sonoro Gold released results from surface rock chip sampling at Cerro Caliche. Southern Silver Exploration reported diamond drill results from Cerro Las Minitas. GoGold Resources released drilling results from Los Ricos North.  ON DEALS AND CORPORATE ISSUES, Sierra Madre Gold and Silver signed an option agreement on the acquisition of the La Tigra project in Nayarit. Vizsla Silver is to exercise the option to acquire 100% of the Panuco-Copala district in Sinaloa.  ON SOCIAL RESPONSIBILITY, Peñoles and Fresnillo PLC informed on the several projects that the companies provide for the education of young people on several areas of Mexico, especially in digital platforms. Conalep and the New Mexico Institute of Mining signed an agreement to enhance the learning of students across the borders.

ON MEXICO ISSUES

  • No Relevant News.

ON EXPLORATION

  • Mammoth Resources Corp. informed on drill targeting activities at Tenoriba, in Chihuahua. “The Company has extended drill targets an additional 1.7 kilometres (km), for a total of over 4.0 km from its previously announced initial 2.4 km of the 3-dimensional (3D) modelling of its infill, Induced Polarization/Magnetometer (IP/Mag) geophysical survey”. Work in the project by previous operators, Mammoth and Centerra includes over 6,000 soil samples, more than 750 rock chip samples, 151 m of surface channel samples, 26 diamond drill holes, IP and magnetic geophysical surveys, mapping, and spectral identification of alteration minerals.
  • Silver Spruce Resources Inc. is to continue its phase 1 reverse circulation drilling at El Mezquite in Sonora. Seven holes have been already completed, and a second rig has been added to the property to complete the 2,475 m of drilling. “The Phase 1 RC program comprises 20 holes with a combined depth of 2,475 metres (950 metres completed) and will utilize eight drill pad locations focused around a 400m x 600m area with elevated precious metal values to 3.41 g/t Au and 387 g/t Ag”.

ON MINING

  • Fortuna Silver Mines Inc. reported production results for the second quarter 2021. At its San José mine in Oaxaca, 1.62 M Oz Ag, 10,266 Oz Au were produced from ore averaging 205 gpt Ag, 1.30 gpt Au. Production and cost guidance for 2021 is 5.8-6.5 M Oz Ag, 38-42 K Oz Au at an AISC of US$12.2-14.5 per Oz AgEq.
  • Excellon Resources Inc. announced Q2 2021 production results from its Platosa mine in Durango. A total of 21.8 K tonnes were mined, and 21.6 K tonnes were milled @ 489 gpt Ag, 5.14% Pb, 6.48% Zn, recovering 87.0% Ag, 78.6% Pb, 79.4% Zn, to produce 296 K Oz Ag, 1.93 M Lb Pb, 2.46 M Lb Zn.
  • Americas Gold and Silver Corp. provided an update on the re-opening plan of its Cosalá operations in Sinaloa. The Company and Government Labour inspectors jointly visited the mine and mill and both appear in good condition. “Mexican government inspectors from the Mexican Ministry of Labour will be in Cosalá this week to review the re‐start plans, which will allow the Company to begin recalling employees immediately following the completion of the inspection assuming compliance with the terms of the July 6, 2021 agreement“. The company expects the mine and the mill to be operating by the end of July, and the operation also has 70 K tonnes of ore stockpiled and ready to process.

ON FINANCING

  • Altaley Mining Corp. executed a US$12 M loan facility agreement with Accendo Banco S.A. Institución de Banca Múltiple, to complete the final part of it’s previously announced US$25 M Accendo syndicate funding plan to complete the construction and ramp-up of its Tahuehueto project in Durango (Campo Morado, Guerrero).
  • Zacatecas Silver Corp. announced that its common shares are eligible for electronic clearing and settlement through the Depositary Trust Co. in the United States. “DTC is a subsidiary of the Depository Trust & Clearing Corporation, a U.S. company that manages the electronic clearing and settlement of publicly traded companies. Securities that are eligible to be electronically cleared and settled through DTC are considered to be “DTC eligible” (Zacatecas Silver, Zacatecas).

ON RESOURCES AND DEVELOPMENT

  • Mexican Gold Mining Corp. announced work continues to produce the PEA on its Las Minas project in Veracruz, within three weeks.
  • Sonoro Gold Corp. reported assay results from surface sampling at its Cerro Caliche property in Sonora. With 1,292 soil and rock samples collected, a 600 m southern extension and a 750 m extension were confirmed on the El Colorado-La Ventana and the Buena Suerte-San Quintin corridors, with 23.7 m @ 1.7 gpt Au (including 5.5 m @ 6.0 gpt Au) in the former and 52.6 m @ 0.2 gpt Au in the latter.
  • Southern Silver Exploration Corp. reported diamond hole drilling results from its Cerro Las Minitas project in Durango. Highlighted true width intervals comprise 1.4 m @ 719 gpt Ag, 14.2% Pb, 16.0% Zn; 0.4 m @ 541 gpt Ag, 0.1 gpt Au, 8.8% Pb, 4.0% Zn in the South Skarn target, and 0.5 m @ 452 gpt Ag, 0.5 gpt Au, 2.8% Pb, 0.6% Zn; 0.5 m @ 312 gpt Ag, 0.12 gpt Au, 2.8% Pb, 0.6% Zn in the Huizache chimney in the Mina La Bocona area. “Current modelling has identified three panels of mineralization at the South Skarn target, the largest of which can now be traced laterally for approximately 400 metres and up to 580 metres down-dip”.
  • GoGold Resources Inc. released results of eight diamond drill holes from El Orito area in the Los Ricos North project in Jalisco. Highlighted core length intervals comprise 41.2 m @ 10 gpt Ag, 0.01 gpt Au, 0.06% Cu, 0.3% Pb, 2.0% Zn; 33.3 m @ 19 gpt Ag, 0.03 gpt Au, 0.08% Cu, 1.1% Pb, 1.7% Zn; 13.0 m @ 30 gpt Ag, 0.02 gpt Au, 0.22% Cu, 0.3% Pb, 1.1% Zn; 3.0 m @ 19 gpt Ag, 0.02 gpt Au, 0.34% Cu, 1.3% Pb, 1.6% Zn; 18.0 m @ 51 gpt Ag, 0.09 gpt Au, 0.06% Cu, 0.4% Pb (including 1.9 m @ 230 gpt Ag, 0.34 gpt Au, 0.23% Cu, 1.0% Pb; 54.3 m @ 97 gpt Ag, 0.12 gpt Au, 0.70% Cu, 2.9% Pb, 5.4% Zn; 38.1 m @ 32 gpt Ag, 0.03 gpt Au, 0.17% Cu, 1.9% Pb, 2.7% Zn; 69.1 m @ 26 gpt Ag, 0.05 gpt Au, 0.14% Cu, 1.0% Pb, 1.6% Zn (including 4.0 m @ 149 gpt Ag, 0.25 gpt Au, 0.70% Cu, 3.2% Pb, 6.9% Zn). “The holes that the Company has drilled to date at El Orito have shown mineralization averaging approximately 30m in width for more than 700m in strike length and up to approximately 300m in vertical depth from surface and is open in all directions”.
  • Minera Alamos Inc. informed that its Santana project in Sonora continues to advance as programmed despite the above average rainfall to date in the area. The press release describes all the progress in leach solution systems, overliner placement, crushing and screening, grade procedures and mining.

ON DEALS AND CORPORATE ISSUES

  • Sierra Madre Gold and Silver Ltd. Entered into a purchase agreement with an option to joint venture with Industrial Minera México S.A. de C.V. (IMMSA) for the 357 ha. La Tigra project in Nayarit, 150 km north of its flagship’s Tepic project. The agreement involves payment of US$1.5 M over three years, with Sierra Madre obliged to produce a 43-101 technical report before the end of the period. IMMSA holds a 2.5% NSR royalty of which Sierra Madre can acquire 1.5% for US$1.5 M.
  • Vizsla Silver Corp. signed a binding agreement with Minera Rio Panuco S.A. de C.V. and executed a binding option exercise notice with Silverstone Resources which together constitute the acceleration and exercise of the option to acquire 100% of the Panuco-Copala district in Sinaloa. Vizsla has to pay $US4.25 M upon signing, issue US$12 M in Vizsla shares before August 10, 2021; and make a cash payment of $US6.1 M before February 2022.

ON SOCIAL RESPONSIBILITY

  • Peñoles and Fresnillo PLC  informed on the several projects that the companies support provide for the education of young people on several areas of Mexico, especially in digital platforms.
  • Conalep (Colegio Nacional de Estudios Profesionales y Tecnicos) and the New Mexico Institute of Mining and Technology signed an agreement to enhance the learning of Mexican and American students.

On the image below:  Intense quartz veining in a granitic intrusive rock in Sinaloa. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the Fourth Week of May, 2021

By Jorge Cirett

During the 21st week of the year (May 24th to May 30th, 2021), at least 33 press releases were announced by companies working in Mexico. To note, seven companies posted exploration advances on their properties, three presented mining related news, seven posted on financing (C$6M, $60 M, C$5 M, C$10 M, $2.6 M, $C$11.5 M) and one on share distribution, six more on project development or resource definition and two posted on corporate issues. ON MEXICO ISSUES, CanCham complained on the lack of clear policies and opacity on the rule of law that are affecting Canadian investments in Mexico.  The push from the Mexican government to create an institution to manage the lithium industry from the optics of sovereignty sees opposition from the mining industry, and reality. Camimex released a list of mining investments to be realized in the next few years, amounting to several billion dollars. ON EXPLORATION, in Sonora, Ridgestone Mining applied for drilling permits at Rebeico. Tocvan Ventures released results from drilling at Pilar. In Chihuahua, Kootenay Silver released high-grade results from drilling at Columba. In Durango, Mithril Resources, updated on drilling at Copalquin. In Sinaloa, Riverside Resources released surface sample results; Vizsla Silver informed on geophysical results supported by drilling, and more surveys to come; Brigadier Gold discovered bulk tonnage copper mineralization in trenching of soil anomalies. ON MINING, Impact Silver and Telson Mining presented Q1 2021 results. Magna Gold informed it has exceeded 3 M man-hours of work without lost-time incidents. ON FINANCING, Silver Bull Resources is to distribute 34.2 M shares of Arras Minerals among its shareholders. Six companies informed on financing rounds: Silver Viper Minerals (C$6 M), Vizsla Silver ($60 M), Reyna Silver (C$5 M), Sable Resources (C$10M, Defiance Silver (C$11.5 M) and Mammoth Resources ($2.58 M). ON RESOURCES AND DEVELOPMENT, Prime Mining released drilling results from Los Reyes. GR Silver Mining reported near surface drill results from Plomosas. GoGold Resources released drilling results from the Casados deposit at Los Ricos North. Discovery Silver released results from 12 drill holes targeting high-grade vein trends at Cordero. Sailfish Royalty filed a technical report with a new resource estimate for Gavilanes. Discovery Silver updated on exploration at Cordero, with 75,000 m of drilling completed on 178 holes, and four drills continuing the phase 2 program. Golden Tag announced the discovery of a shallow zone of epithermal mineralization at San Diego.   ON DEALS AND CORPORATE ISSUES, Mexus Gold informed Fresnillo PLC is reviewing its Santa Elena mine. Riverside Resources announced BHP is funding a third year of generative work in Sonora. ON SOCIAL RESPONSIBILITY, Peñoles and Fresnillo PLC informed on their policies and programs to aid in education on a wide range of communities. Minera San Xavier informed Cerro San Pedro in San Luis Potosi has been declared as “Cyanide Free Site” by the International Cyanide Management Institute.

ON MEXICO ISSUES

  • CanCham (Cámara de Comercio de Canadá en México) pointed out that the lack of clear policies and the opacity on rule of law is affecting Canadian investments, which show an 18% decrement in the last year, holding the investment of thousands of millions (Mexican number notation) of dollars in the energy, mining, pharmaceutical and agricultural sectors. These remarks were expressed by Enrique Zorrilla, Cancham’s president, in the meeting between the Commerce ministers of Mexico, Canada and the United States.
  • Mexico is preparing its strategy to develop the lithium market. The federal government intends to become a lithium producer by controlling several deposits, Bolivia’s advice and a commerce treatise to facilitate establishing an electric battery factory. The current government senate fraction is preparing a proposal to create the Instituto Nacional del Litio. (Lithium National Institute) and to declare lithium as Nation’s exclusive property (Note. – This federal initiative push misses the point that so far there is not a single lithium mine in Mexico, that its lithium in brines potential is limited at best, and that the economics of lithium extraction from clays -like in the Bacanora Lithium’s deposit in Sonora- is not yet clear).
  • Fernando Alanís, president of Camimex (Cámara Minera de México) informed that lithium deposits in Mexico have a very low grade, and lack the technology for its extraction, reason for which the country is far from becoming a world power in lithium production. Lithium presents in three kind of deposits: hard rock (pegmatites), brines (from salt lakes) and clays. Rock and brine lithium extraction accounts for 100% of the world production, whereas the extraction of lithium from clays is very energy intensive and expensive, not having a single producing mine in the entire planet.
  • Camimex released a table with the Mexican Mining Developments programmed for the next few years, same that reach US$7,820 Million in investment (Mexican number notation, equivalent to US$7.8 billion).

ON EXPLORATION

  • Mithril Resources Ltd. provided an update on drilling at its Copalquin project in Durango. The current program main focus is to extend the Refugio ore shoot down dip (presently 600 m along strike, 200 m down dip, 5 m in width), maiden drilling at Los Pinos target, extend three holes and deep exploration drilling at La Soledad and extend near-surface intercepts at El Cometa.
  • Ridgestone Mining Inc. commenced permitting for drill programs at Guadalupe y Calvo, Chihuahua, and Rebeico, Sonora.
  • Riverside Resources Inc. reported surface sample results from its La Silla project in Sinaloa. The highlighted samples from the El Ciruelo and El Roble targets returned 6.1 gpt Au, 80 gpt Ag; 5.6 gpt Au, 81 gpt Ag; 4.4 gpt Au, 35 gpt Ag; 3.5 gpt Au, 26 gpt Ag; 3.3 gpt Au, 20 gpt Ag; 2.6 gpt Au, 41 gpt Ag, on quartz veining, gossanous breccia and strongly oxidized andesite. El Ciruelo target extends for at least 1 km with a 1-5 m wide chalcedonic vein zone. El Roble vein extends for at least 300 m, reaching up to 2 m in width, with mineralization occurring also in the host rock.
  • Vizsla Silver Corp. provided an update on the recently completed geophysical survey completed at Panuco, in Sinaloa. A fixed loop electromagnetics (FLEM, or EM) was trialed and detected massive sulfide mineralization on the Napoleon and Josephine veins, proved with three massive sulfide intercepts in the latter. The Josephine vein has no known surface expression and runs parallel to the west of the main Napoleon trend. Mineralization at Tajitos is not related to massive sulfides and was not detected with EM. Vizsla is planning a property wide airborne EM-magnetic survey at Panuco.
  • Kootenay Silver Inc. announced high-grade results from the 5,000 m core drill program currently underway at Columba, Chihuahua. Highlighted core length intervals in the Hanging-Wall, F, and Footwall veins comprise 1.55 m @ 189 gpt Ag, 0.1%Pb, 0.2% Zn; 1.0 m @ 104 gpt Ag, 0.1% Zn; 2.44 m @ 217 gpt Ag, 0.1% Pb, 0.1% Zn; 2.94 m @ 321 gpt Ag, 0.2% Pb, 0.6% Zn (including 1.94 m @ 428 gpt Ag, 0.3% Pb, 0.7% Zn); 8.0 m @ 130 gpt Ag, 0.1% Pb, 0.2% Zn (including 2.9 m @ 265 gpt Ag, 0.1% Pb, 0.5% Zn); 1.95 m @ 104 gpt Ag, 0.1% Pb, 0.1% Zn; 9.0 m @ 354 gpt Ag, 0.1% Pb, 0.4% Zn (including 2.63 m @ 809 gpt Ag, 0.3% Pb, 0.4% Zn); 30.0 m @ 86 gpt Ag (including 2.37 m @ 425 gpt Ag, 0.2% Zn).
  • Brigadier Gold Ltd. announced the discovery of bulk tonnage type copper mineralization at its Picachos project in Sinaloa. Fifty meters on trenching of historic copper anomalies has returned XRF copper values ranging from 0.05 to 1.34% Cu and 20 to 284 ppm Ag. Brigadier has also completed mapping and sampling of the historic La Gloria mine, where a drill hole intercepted 1.0 m @ 6.26 gpt Au.
  • Tocvan Ventures Corp. released results for the first three holes of its phase-II drill program at Pilar, in Sonora. The drill program consists of 2,900 m of reverse circulation drilling in 17 holes, of which 14 are pending results. Highlighted down-hole intercepts comprise 29 m @ 0.71 gpt Au (including 6.1 m @ 1.9 gpt Au); 24.4 m @ 0.56 gpt Au (including 9.2 m @ 1.3 gpt Au, 14 gpt Ag); 6.1 m @ 0.48 gpt Au, 4 gpt Ag; 4.6 m @ 0.50 gpt Au, 11 gpt Ag.

ON MINING

  • Impact Silver Corp. presented its financial and operating results of Q1 2021. During the period 36.4 K tonnes were processed @ 162 gpt Ag to produce 156.9 K Oz Ag. “continued exploration on the north and south extensions of the Veta Negra Mine, trenching on the bulk tonnage gold target at Manto America in the central part of the district and exploration on the northwest (Pachuqueno) extensions of the Guadalupe Mine”.
  • Magna Gold Corp. has exceeded 3 M man-hours of work without lost-time incidents within all its operations, including contractors and suppliers. The last lost-time incident was in 2018, and the mine has not had a fatal accident in its 11 years history.
  • Telson Mining Corp. presented its first quarter 2021 financial and operating results. At Campo Morado in Guerrero, 174.4 K tonnes were processed to produce 11,013 tonnes Zn (74% Zn recovery), 1,908 tonnes Pb at cash cost $0.70 per Lb Zn and AISC of $0.90 per Lb Zn. During the period gross revenue was $21.2 M (Q1 2020: $19.0 M) and mine operating profit $5.25 M (Q1 2020: $0.26 M loss).

ON FINANCING

  • Silver Bull Resources Inc. announced its intent to distribute 34.2 M shares of Arras Minerals Corp. to Silver Bull shareholders. Silver Bull transferred mineral properties in Kazakhstan and received 36 M shares of Arras in return, making Arras an approximately 88%-owned subsidiary of Silver Bull (Sierra Mojada, Coahuila).
  • Silver Viper Minerals Corp. intends to undertake a non-brokered private placement financing to raise aggregate gross proceeds of up to C$6 M (La Virginia, Sonora).
  • Vizsla Silver Corp. entered into an agreement with Canaccord Genuity Corp. on behalf of a syndicate of underwriters to buy units of the company for gross proceeds of $60 M (Panuco, Sinaloa).
  • Reyna Silver Corp. entered into an agreement with Eight Capital and Red Cloud Securities Inc. in connection with a private placement intended to raise up to C$5 M (Guigui and Batopilas, Chihuahua).
  • Sable Resources Ltd. entered into an agreement with Sprott Capital Partners LP and Eight Capital in connection with a bought deal private placement financing to raise up to C$10 M (Vinata, Chihuahua).
  • Mammoth Resources Corp. Announced a non-brokered private placement financing aiming to raise up to $2 M, same that by the next day had been increased to $2.58 M (Tenoriba, Chihuahua).
  • Defiance Silver Corp. has increased the size of its previously announced private placement with Red Cloud Securities Inc. for gross proceeds of up to C$11.5 M (Bolañitos and Pinguico, Guanajuato).

ON RESOURCES AND DEVELOPMENT

  • Prime Mining Corp. released additional results from its ongoing 15,000 m drill program at Los Reyes, Sinaloa. The Highlighted true width intercepts are from the Guadalupe East, Zapote South and the Estaca vein: 11.6 m @ 8.12 gpt Au, 725 gpt Ag; 5.6 m @ 11.95 gpt Au, 1,221 gpt Ag; 2.1 m @ 21.63 gpt Au, 1,960 gpt Ag; 2.0 m @ 11.17 gpt Au, 909 gpt Ag; 2.4 m @ 2.00 gpt Au, 121 gpt Ag; 1.4 m @ 10.50 gpt Au, 300 gpt Ag; 3.9 m @ 0.45 gpt Au, 37 gpt Ag; 0.6 m @ 93.80 gpt Au, 829 gpt Ag.
  • GR Silver Mining Ltd. reported near surface drill results from the Plomosas mine area in Sinaloa. Highlighted true width intervals comprise 11.9 m @ 84 gpt Ag, 2.3% Pb, 2.7% Zn, 0.1% Cu; 16.7 m @ 7 gpt Ag, 0.22 gpt Au, 0.1% Pb, 0.3% Zn; 10.8 m @ 3 gpt Ag, 0.20 gpt Au, 0.1% Pb, 0.4% Zn; 4.2 m @ 10 gpt Ag, 0.09 gpt Au, 0.1%Pb, 0.6% Zn, 0.1% Cu; 2.1 m @ 350 gpt Ag, 1.0% Pb, 0.4% Zn; 1.9 m @ 348 gpt Ag, 0.3% Pb, 0.3% Zn; 1.3 m @ 26 gpt Ag, 0.19 gpt Au, 3.3% Pb, 3.3% Zn; 1.0 m @ 128 gpt Ag, 1.00 gpt Au, 9.0% Pb, 9.7% Zn, 0.2% Cu; 2.6 m @ 45 gpt Ag, 0.60 gpt Au, 3.0% Pb, 0.9% Zn; 4.7 m @ 187 gpt Ag, 0.18 gpt Au, 2.2% Pb, 1.2% Zn, 0.1% Cu; 2.0 m @ 277 gpt Ag, 0.22 gpt Au, 0.2% Pb, 0.4% Zn; 1.9 m @ 283 gpt Ag, 0.82 gpt Au, 0.3% Pb, 1.0% Zn, 0.1% Cu.
  • GoGold Resources Inc. released results of nine holes on the Casados deposit at the Los Ricos North project in Jalisco. Highlighted core length intersects comprise 29.9 m @ 0.25 gpt Au, 70 gpt Ag; 15.5 m @ 0.27 gpt Au, 67 gpt Ag; 34.4 m @ 0.17 gpt Au, 67 gpt Ag; 5.3 m @ 0.65 gpt Au, 305 gpt Ag; 9.2 m @ 0.24 gpt Au, 109 gpt Ag (including 1.9 m @ 0.61 gpt Au, 442 gpt Ag); 60.5 m @ 0.21 gpt Au, 44 gpt Ag; 2.1 m @ 0.57 gpt Au, 322 gpt Ag; 54.1 m @ 0.37 gpt Au, 92 gpt Ag; 28.5 m @ 0.43 gpt Au, 100 gpt Ag (including 1.8 m @ 2.09 gpt Au, 418 gpt Ag); 14.0 m @ 0.46 gpt Au, 134 gpt Ag (including 5.3 m @ 1.04 gpt Au, 304 gpt Ag); 2.6 m @ 2.93 gpt Au, 610 gpt Ag.
  • Discovery Silver Corp. released results from 12 diamond drill holes testing the Josefina and Todos Santos high-grade vein trends at the Cordero project in Chihuahua. Highlighted intercepts on the Josefina vein trend comprise 41.5 m @ 97 gpt Ag, 0.04 gpt Au, 1.0% Pb, 2.5% Zn (including 4.1 m @ 520 gpt Ag, 0.11 gpt Au, 3.0% Pb, 9.8% Zn and 3.3 m @ 182 gpt Ag, 0.09 gpt Au, 3.4% Pb, 7.1% Zn); 13.1 m @ 112 gpt Ag, 0.13 gpt Au, 1.3% Pb, 2.2% Zn; 36.4 m @ 66 gpt Ag, 0.10 gpt Au, 0.3% Pb, 1.0% Zn; 87.4 m @ 38 gpt Ag, 0.06 gpt Au, 0.2% Pb, 1.0% Zn; 3.6 m @ 343 gpt Ag, 0.11 gpt Au, 1.7% Pb, 2.7% Zn; 19.3 m @ 40 gpt Ag, 0.06 gpt Au, 0.7% Pb, 1.4% Zn); 22.4 m @ 156 gpt Ag, 0.10 gpt Au, 1.7% Pb, 2.3% Zn (including 3.7 m @ 299 gpt Ag, 0.16 gpt Au, 3.9% Pb, 5.7% Zn). The Josefina vein trend includes two subparallel veins that run for 1.5 km, and has been tested to 370 m depth and remains open. The Todos Santos vein trend consists of two closely spaced veins, extends for at least 1.5 km along strike and 400 m of depth in old workings and drill holes. Highlighted intercepts comprise 62.0 m @ 19 gpt Ag, 0.28 gpt Au, 0.1% Pb, 2.0% Zn; 21.4 m @ 46 gpt Ag, 0.07 gpt Au, 0.8% Pb, 1.3% Zn; 1.9 m @ 113 gpt Ag, 0.04 gpt Au, 2.4% Pb, 3.2% Zn; 3.7 m @ 96 gpt Ag, 0.07 gpt Au, 1.8% Pb, 3.0% Zn; 2.1 m @ 160 gpt Ag, 0.27 gpt Au, 3.3% Pb, 3.6% Zn.
  • Sailfish Royalty Corp. filed a NI-43-101 technical report and estimate of mineral resources for the Gavilanes project in Durango.
  • Discovery Silver Corp. updated on its Cordero project in Chihuahua and informed that by the end of the first quarter 2021 had cash and cash equivalents for $94.7 M. At Cordero 75,000 m of drilling were completed in 178 holes in phase 1 drilling, providing information to be used in the bulk-tonnage preliminary economic assessment (PEA) underway. Phase 2 drilling continues with four rigs, focused on reserve definition, resource expansion and high-grade vein delineation. Bulk tonnage targeted drilling has returned up to 128.2 m @ 65 gpt Ag, 0.05 gpt Au, 1.2% Pb, 1.3% Zn; 131.6 m @ 48 gpt Ag, 0.09 gpt Au, 0.5% Pb, 1.1% Zn (including 37.1 m @ 119 gpt Ag, 0.22 gpt Au, 1.0% Pb, 1.2% Zn); 110.0 m @ 37 gpt Ag, 0.04 gpt Au, 0.8% Pb, 1.0% Zn; 85.6 m @ 53 gpt Ag, 0.05 gpt Au, 1.4% Pb, 1.7% Zn. Drilling on high-grade veins has returned up to 4.1 m @ 520 gpt Ag, 0.11 gpt Au, 3.0% Pb, 9.8% Zn in the Josefina vein; 4.0 m @ 377 gpt Ag, 0.28 gpt Au, 7.1% Pb, 3.4% Zn in the Todos Santos vein and 4.4 m @ 246 gpt Ag, 0.39 gpt Au, 6.5% Pb, 0.4% Zn on the Parcionera vein.
  • Golden Tag Resources Ltd. discovered a new zone of epithermal mineralization at the San Diego project in Durango. The new drill hole intercepted 10.0 m @ 0.55 gpt Au, 628 gpt Ag, 1.1% Pb, 3.6% Zn, 0.12% Cu, in a zone where previous drilling had returned 2.0 m @ 0.33 gpt Au, 161 gpt Ag, 0.3% Pb, 0.2% Zn, 0.04% Cu; 3.75 m @ 0.32 gpt Au, 125 gpt Ag, 1.5% Pb, 4.0% Zn, 0.12% Cu. “The hole intersected a series of epithermal breccias and quartz-carbonate veins within the Central Diorite intrusion from 73.0 to 92.70 m which are characterized by cavity filling banded quartz and carbonate veins with fluorite and associated sulfides comprised primarily of pyrite, sphalerite, galena, boulangerite, and arsenopyrite”.

ON DEALS AND CORPORATE ISSUES

  • Mexus Gold US. informed personnel from Fresnillo PLC is reviewing its Santa Elena mine in Sonora. The geologists are checking the potential for a disseminated deposit, as well as the quartz vein currently worked by Mexus.
  • Riverside Resources Inc. announced BHP and Riverside “have agreed on moving forward with a third year of generative funding for copper exploration in Sonora. The new budget is US$1.3 M for generative exploration work.

ON SOCIAL RESPONSIBILITY

  • Peñoles and Fresnillo PLC informed on their policies and programs to aid on education in a widespread communities.
  • Minera San Xavier has been declared as “Cyanide Free Site” by the International Cyanide Management Institute. Cerro San Pedro is the first mine in the world that has realized the dismantling process of the 110 m high heap that covers 102 hectares (1 square kilometer).

Content like what you have just read can be seen at https://gambusinoprospector.com/ and at LinkedIn’s Mexico Mineral Exploration Group. On the image below:  Quartz-tourmaline breccia from a project in Sinaloa. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the Third Week of April, 2021

By Jorge Cirett

During the 15th week of the year (April 12th to April 18th, 2021), as a sign of the strong current activity, at least 43 press releases were announced by companies working in Mexico. To note, ten companies posted exploration advances on their properties, seven presented mining related news, six posted on financing or share options (including C$2.35 M, $3 M, C$14.1 M, C$5.6 M and $25 M), eight more on project development or resource definition and three posted on corporate issues. ON MEXICO ISSUES, Francisco Quiroga, the ex-secretary of Mining has been appointed ambassador in Germany. The Sonora Mining Cluster has two new female counselors. Napoleon Gomez Urrutia and its SNTMMS Union have been condemned to pay US$54 M to some of its affiliates. A new Coordination has been created in the Economy Secretariat to promote mining. The CTM Union opposes the outsourcing reform that would decrease the participation of workers in the profits of mining companies. ON EXPLORATION, In Sonora, Silver Spruce signed a LOI on the Diamante 1 and Diamante 2 projects; Ridgestone announced its exploration plan for the Rebeico property; Tocvan Ventures commenced phase II RC drilling at Pilar; Carlyle Commodities released good drilling results from Cecilia; Orogen informed its Lola and Sarape properties are being drilled by partners; Canuc Resources released information on the first drill hole on the present campaign at its San Javier Au-Ag project. In Chihuahua, Monarca Minerals signed a surface access agreement for its San Jose project; Kootenay Silver updated on drilling of its Columba project. In Sinaloa, Viszla Silver released drilling results from the Napoleon zone at its Panuco project. In San Luis Potosi and Zacatecas Advance Gold released results from auger sampling at several salars. ON MINING, Magna Gold, Fortuna Silver Mines, Sierra Metals, Excellon and First Majestic Silver released Q1 2021 production results. Consolidated Zinc announced the commencement of concentrate production from the recently refurbished plant at Plomosas in Chihuahua. ON FINANCING, Colibri Resources, Sonoro Gold, Santacruz Silver Mining, Heliostar Metals and Candelaria Mining released news on financing (with C$2.35 M, $3 M; $14.1 M, C$4 M and up to $25 M respectively). Defiance Silver completed its uplisting to the OTCQX Best Market ON RESOURCES AND DEVELOPMENT, Equinox Gold commenced the development of the Bermejal underground mine in Guerrero. Xali Gold submitted permit applications for the Mexico Mines Tailings project in El Oro, Estado de Mexico. Gatos Silver presented good drilling results from both extensions of the Cerro Los Gatos deposit in Chihuahua. Fabled Silver Gold released results from drilling at Santa Maria, Chihuahua. SilverCrest Metals released high-grade drilling results from several veins at Las Chispas, Sonora. Almaden Minerals is conducting an induced polarization survey at the Ixtaca deposit in Puebla. GoGold Resources released drilling results from El Favor zone at its Los Ricos North project in Jalisco. Golden Tag Resources released results from drilling at its San Diego property in Durango.   ON DEALS AND CORPORATE ISSUES, VanGold Mining closed with Endeavour Silver the acquisition of the El Cubo mine and mill complex in Guanajuato. Silver Spruce Resources signed a LOI with Colibri Resource on the Diamante 1 and Diamante 2 properties in Sonora. Empress Royalty executed a $5 M Silver Stream agreement with Telson Mining. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • Francisco Quiroga Fernández, Mining ex-subsecretary was appointed ambassador of Mexico in Germany. Rare in the present administration, he’s a competent professional with experience in the private industry, and more than capable to develop and strengthen political and economic ties between the two countries.  
  • The Sonora Mining Cluster named Silvia Álvarez and Maria López Rosas as new counselors to the organism.
  • The Sindicato Nacional de Trabajadores Mineros, Metalúrgicos y Similares de La República Mexicana (a strong Mining Union) and its leader Napoleón Gómez Urrutia have lost a legal law suit and have been condemned by the Junta Federal de Conciliación y Arbitraje to pay US$54 M. The Union received these funds from the sale of the Cananea mine 15 years ago, and was supposed to deliver that money to the at the time workers of the company in charge. The union failed to deliver the funds to the miners.
  • The Mexican president ordered by decree the creation of the Coordination of Extractive Activities on the Economy Secretariat. Said unit is to coordinate the mining activities of the State and actions to promote national and foreign investments in mining, among other activities.
  • The CTM Union (Confederación de Trabajadores de México) opposes the reform on outsourcing that would lower the amount the miners receive as participation on the company’s annual profits.  

ON EXPLORATION

  • Silver Spruce Resources Inc. signed a letter of intention (LOI) on two properties in Sonora, Diamante 1 and Diamante 2 covering 1,057 hectares. Historical assays from samples in the Diamante 1 and Diamante 2 properties, which display epithermal intermediate sulfidation mineralization have returned up to 39.8 gpt Au, 3,460 gpt Ag, 7.3% Pb, 5.6% Zn. Diamante 1 has already six main targets, including the La Prieta-El Aguaje vein system, which runs for 2,000 m averaging 1 m in width. At Diamante 2 The Calton area displays two vein 900 m and 1,100 m in length, ranging from 0.30 m to 1.70 m in width. The El Cumbro-Mezquite Raizudo veins follow a structural trend 900 m long, displaying an average width of 1 meter.
  • Advance Gold Corp. released results from auger drilling sampling at all the salars it recently acquired in Zacatecas and San Luis Potosí. The 0.5 m to 1 m of depth samples returned highlighted results of up to 650 ppm boron (B), 1.91% Potassium (K) and 620 ppm Lithium (Li). The average grade of the samples was 247 ppm B, 1.17% K and 215 ppm Li.
  • Monarca Minerals Inc. executed and ratified by a Notary Public the surface access agreement with both the Ejido and Colonia on its San Jose silver project in Chihuahua. The company is now to apply for the environmental permit that will allow it to conduct its planned 5,000 m drilling campaign.
  • Ridgestone Mining Inc. announced an exploration plan for its 3,459 hectares Rebeico project in Sonora. The current phase will comprise geologic mapping, sampling and prospecting, with focus on the New Year zone, the Santa Elena outcrop and El Cobre mine.
  • Tocvan Ventures Corp. announced the start of phase II of its drilling program at the Pilar project in Sonora. The two-stage 4,000 m reverse circulation (RC) drill program will focus first on the “definition and expansion of the Main Zone, which during Phase I returned 94.6-meters at 1.6 g/t Au including 9.2m at 10.8 g/t Au and 38 g/t Ag”, and then to test the new targets across the property.
  • Kootenay Silver Inc. reported it has completed 12 core drill holes totalling 1,800 m as part of its 5,000 m campaign at its Columba project in Chihuahua. Kootenay has tested the F vein and is now testing an area east of the J-Z zone.
  • Carlyle Commodities Corp. released the first batch of drill results from the Cecilia project in Sonora. The program consisted of seven holes, of which results have been received for five. The best intercept was 24.2 m @ 1.51 gpt Au. Other core-length highlighted intervals comprise 1.30 m @ 0.69 gpt Au; 5.95 m @ 0.20 gpt Au, 3.10 m @ 0.52 gpt Au; 9.45 m @ 0.23 gpt Au; 1.00 m @ 0.55 gpt Au; 3.45 m @ 0.35 gpt Au; 4.30 m @ 0.29 gpt Au; 6.10 m @ 0.43 gpt Au; 3.00 m @ 0.87 gpt Au. “The first drill program from Carlyle and Riverside was focused on targeting the hydrothermal system identified at two principal elevations: 2,200 m and 1,900 m, respectively corresponding to the San Jose Target and the North Breccia Target…… to test the continuity of the mineralized structures at shallow depth”.  
  • Orogen Royalties Inc. announced the commencement of drilling programs on two of its properties in Sonora. At La Lola, partner Heliostar Metals Ltd. has initiated a 1,500 m drilling program. At the 57.8 square km Sarape project, Orogen and partner Hochschild PLC commenced a planned 3,000 m program. Eight holes will be drilled on 2.5 km of the Sarape vein. “In 2019, nine holes drilled within a 380-metre-long segment of the vein defined a structural dilation zone at 100-350 metres depth (Figure 2). In this zone the vein thickens to 23.6 metres in width..…. A deeper horizon will also be drilled to identify if the grade of the vein improves with depth”.
  • Canuc Resources Corp. informed on drilling advance at its San Javier Ag-Au project in Sonora. The first hole of a planned 6,000 m program was ended at 89.5 m in a fault zone. It intersected brecciated sedimentary rocks with stockwork veining and three intervals of massive magnetite breccia. “The 20-hole program is designed to test at least 4 magnetic features that underlie areas where a 2020 mapping and rock sampling program identified silver, gold and copper mineralization. At surface, the host rocks for three of these features are found to be magnetite breccia”. The program is focused on magnetic anomalies identified by a previous survey.
  • Viszla Silver Corp. released drilling results from step out drilling at the southern extension of the Napoleon prospect at its Panuco project in Sinaloa. The Napoleon vein has been mapped for more than 2.5 km and has four rigs drilling at the time. Highlighted true width intercepts comprise 4.46 m @ 890 gpt Ag, 19.99 gpt Au, 0.7% Pb, 1.8% Zn (including 0.92 m @ 3,804 gpt Ag, 91.91 gpt Au, 1.5% Pb, 3.5% Zn); 1.92 m @ 105.9 gpt Ag, 7.28 gpt Au, 0.7% Pb, 2.9% Zn (including 1.45 m @ 131 gpt Ag, 9.39 gpt Au, 0.8% Pb, 3.1% Zn)

ON MINING

  • Fortuna Silver Mines Inc. released production results for the first quarter 2021, including figures from its Mexican operations. At San José, in Oaxaca, 259.8 K tonnes @ 217 gpt Ag, 1.36 gpt Au were milled, recovering 90.8% Ag, 90.5% Au to produce 1.65 M Oz Ag, 10,301 Oz Au.
  • Consolidated Zinc Ltd. announced the 2021 zinc concentrate “benchmark treatment charge (TC) has been agreed between the major miners and smelters at US$159.00/t of concentrate, a reduction of 47% from last year’s benchmark treatment charge of US$299.75/t”. Treatment charges in 2020 represented 33% of total operating costs (before by-product credits) being the single largest operating cost (Plomosas, Chihuahua).
  • Magna Gold Corp. informed production levels have benefited from the accelerated stripping program, resulting in month to month growth in gold production, with 3,085 ounces in January, 2,670 ounces in February and 4,030 ounces in March. Magna anticipates the mine will return to full scale commercial production by June of this year, with 2021 guidance in the range of 55,000 to 65,000 Oz Au. During the Q1 2021, 619 K tonnes were mined @ 0.34 gpt Au, with 5.2 M tonnes of waste moved (8.40 strip ratio) to produce 9,785 Oz Au, 8.1 K Oz Ag.
  • Sierra Metals Inc. reported first quarter 2021 production reports, including figures from its Mexican properties. At Bolivar, in Chihuahua, 371.6 K tonnes were processed @ 0.77% Cu, 19.7 gpt Ag, 0.19 gpt Au, recovering 82.8% Cu, 83.6% Ag, 69.6% Au, to produce 5.2 M Lb Cu, 197 K Oz Ag, 1,591 Oz Au (7.3 M Lb CuEq). At Cusi, also in Chihuahua, 76.6 K tonnes were processed @ 15.2 gpt Ag, 0.16 gpt Au, 0.22% Pb, recovering 80.9% Ag, 39.6% Au, 81.5% Pb, to produce 313 K Oz Ag, 155 Oz Au, 298 K Lb Pb (334 K AgEq Oz Ag).
  • Consolidated Zinc Ltd. announced the first concentrate from the newly refurbished plant at its Plomosas property in Chihuahua has been produced.
  • Excellon Resources Inc. released Q1 2021 production results from the Platosa mine in Durango. At the site 21,212 tonnes were mined, 21,764 tonnes were milled @ 524 gpt Ag, 5.35% Pb, 6.73% Zn, recovering 89.7% Ag, 81.8% Pb, 74.7% Zn to produce 328.7 K Oz Ag, 2.1 M Lb Pb, 2.4 M Lb Zn, or 516.7 K Oz AgEq.
  • First Majestic Silver Corp. produced during the Q1 2021 2.9 M Oz Ag, 23,873 Oz Au, or 4.5 M Oz AgEq from its three mines in Mexico: San Dimas in Durango, Santa Elena in Sonora and La Encantada in Coahuila. The company completed 39,552 m in exploration drilling during the quarter, with 10 rigs at San Dimas, seven rigs at Santa Elena and two rigs at La Encantada.

ON FINANCING

  • Colibri Resource Corp. has closed a non-brokered private placement for CAD$2.35 M in gross profits. (Evelyn, Sonora).
  • Sonoro Gold Corp. has increased its non-brokered private placement to raise an aggregate of $3 M thorough the exercise of over allotment options (Cerro Caliche, Sonora).
  • Santacruz Silver Mining Ltd. closed its non-brokered private placement offering, for gross proceeds of CDN$14.1 M (Carrizales, Hidalgo).
  • Defiance Silver Corp. successfully completed an uplisting to the OTCQX Best Market (San Acacio, Zacatecas).
  • Heliostar Metals Ltd. is increasing the size of its C$4 M marketed private placement to raise up to C$5.6 M (La Lola, Sonora).
  • Candelaria Mining Corp. intends to raise up to $25 M to fund exploration activities at the Caballo Blanco district in Veracruz, and the Pinos project in Zacatecas.

ON RESOURCES AND DEVELOPMENT

  • Equinox Gold Corp. is commencing development of the Bermejal underground mine at its Los Filos project in Guerrero.
  • Xali Gold Corp. submitted permit applications for the Mexico Mines Tailings project in El Oro, Estado de México. The permits are to allow both the transportation and re-processing of the tailings at a new 25 hectares plant site located 5 Km from the current location. Xali’s is to pay the El Oro municipality an 8%  net profit interest (NPI). The project has an inferred resource of 1.27 M Tonnes grading 2.94 Au g/t, 75.12 Ag g/t, containing 119,900 Oz Au and 3.06 M Oz Ag.
  • Gatos Silver Inc. reported drilling results of delineation drilling at Cerro Los Gatos in Chihuahua. The program has demonstrated continuity in both the southeast and northwest projections of the current reserve. Highlighted true width drill results include: 9.5 m @ 0.11 gpt Au, 51 gpt Ag, 2.1% Pb, 3.1% Zn; 3.4 m @ 0.12 gpt Au, 122 gpt Ag, 5.0% Pb, 9.8% Zn, 0.2% Cu; 5.4 m @ 0.25 gpt Au, 121 gpt Ag, 1.5% Pb, 2.9% Zn; 7.2 m @ 0.14 gpt Au, 106 gpt Ag, 3.5% Pb, 3.4% Zn, 0.1% Cu; 2.6 m @ 0.21 gpt Au, 327 gpt Ag, 9.2% Pb, 3.8% Zn, 0.14% Cu; 12.0 m @ 0.15 gpt Au, 44 gpt Ag, 1.1% Pb, 4.0% Zn, 0.15% Cu; 2.8 m @ 0.20 gpt Au, 111 gpt Ag, 1.6% Pb, 3.9% Zn, 1.3% Cu; 1.9 m @ 0.12 gpt Au, 132 gpt Ag, 3.2% Pb, 9.9% Zn, 0.4% Cu; 7.2 m @ 0.06 gpt Au, 25 gpt Ag, 1.0% Pb, 10.3% Zn, 0.2% Cu; 5.7 m @ 0.17 gpt Au, 152 gpt Ag, 3.0% Pb, 4.4% Zn, 0.30% Cu.
  • Fabled Silver Gold Corp. released drilling results from its Santa Maria property in Chihuahua. The last sample on the last drill hole returned 75.9 gpt Ag, with 6.4 m of similar material awaiting results. Fabled is making a reinterpretation of previous work and testing the new targets identified. The ongoing 8,000 m drill program has been increased to at least 9,200 m. “This program will be focused underground to delineate the Santa Maria Central Structure with multi underground drill stations being prepared”.
  • SilverCrest Metals Inc. released additional in-fill and expansion drill results s from the Babi Vista vein splay, Babi Vista vein, Granaditas 1 vein, Granaditas 2 vein, and adjacent hangingwall and footwall veins in the Babicanora Area of its Las Chispas Project in Sonora. The results are from 78 holes totaling 29,308 m completed since the last news release for these veins, in areas with mineral resources or in close proximity. Average results for the Babi Vista vein splay comprise 0.91 true width @ 16.12 gpt Au, 1,351 gpt Ag, with individual intercepts of up to 1.04 m @ 185.65 gpt Au, 13,959 gpt Ag. Babi Vista Footwall and Granaditas 1 average 1.04 m @ 12.89 gpt Au, 1,884 gpt Ag, with the highest intercept running 0.40 m @ 114.0 gpt Au, 78,872 gpt Ag (7.89% Ag). The Babi Vista and Granaditas 2 vein average 0.67 m @ 4.56 gpt Au, 414 gpt Ag, while the Babi Vista Hangingwall averages 0.43 m @ 2.55 gpt Au, 249 gpt Ag.
  • Almaden Minerals Ltd. is conducting an induced polarization geophysical survey at the Ixtaca deposit in Puebla. “The work is designed to help define drill targets beneath the area of hydrothermal alteration called the Southeast Alteration (SE) zone and at depth beneath the Ixtaca deposit (“Ixtaca Deeps”). It is hoped that this geophysical survey, along with past survey results, will identify potential zones of veining like those in the Ixtaca deposit. The discovery drill hole in the original Ixtaca deposit area was planned in part based on high resistivity and chargeability results obtained in an earlier IP geophysical survey”.
  • GoGold Resources Inc. released results from six diamond drill holes from El Favor area at its Los Ricos North project in Jalisco. Highlighted core-length intervals comprise 69.3 m @ 108 gpt Ag, 0.49 gpt Au (including 15.3 m @ 392 gpt Ag, 1.76 gpt Au); 9.6 m @ 112 gpt Ag, 0.39 gpt Au; 59.0 m @ 119 gpt Ag, 0.32 gpt Au (including 5.0 m @ 361 gpt Ag, 0.90 gpt Au); 2.8 m @ 110 gpt Ag, 0.16 gpt Au; 16.1 m @ 97 gpt Ag, 0.21 gpt Au; 12.0 m @ 86 gpt Ag, 0.09 gpt Au; 3.2 m @ 204 gpt Ag, 0.15 gpt Au; 7.2 m @ 135 gpt Ag, 0.76 gpt Au; 23.3 m @ 92 gpt Ag, 0.22 gpt Au; 12.9 m @ 254 gpt Ag, 0.81 gpt Au (including 8.2 m @ 392 gpt Ag, 1.25 gpt Au).
  • Golden Tag Resources Ltd. released results from the first three holes of a 4,500 m campaign at its San Diego project in Durango. A hole in the Fernandez zone returned 50.17 m @ 105 gpt AgEq; Another hole intersected 127.3 m of skarn/Fernandez style mineralization, intersecting 35.46 m @ 0.06 gpt Au, 30 gpt Ag, 0.14% Pb, 0.24% Zn, 0.01% Cu (52 gpt AgEq) and 91.84 m @ 0.07 gpt Au, 15 gpt Ag, 0.31% Pb, 0.34% Zn, 0.01% Cu (49 gpt AgEq). Other holes intercepted 1.11 m @ 0.90 gpt Au, 142 gpt Ag, 0.13% Pb, 0.21% Zn, 0.02% Cu; 3.25 m @ 0.02 gpt Au, 237 gpt Ag, 0.41% Pb, 0.82% Zn, 0.08% Cu; 1.10 m @ 0.28 gpt Au, 195 gpt Ag, 1.70% Pb, 1.92% Zn, 0.07% Cu; 2.69 m @ 0.05 gpt Au, 355 gpt Ag, 0.30 % Pb, 0.41% Zn, 0.02% Cu; 8.41 m @ 0.02 gpt Au, 24 gpt Ag, 0.61% Pb, 0.49% Zn, 0.06% Cu.

ON DEALS AND CORPORATE ISSUES

  • VanGold Mining Corp. closed the acquisition of El Cubo mine and mill complex in Guanajuato with Endeavour Silver Corp..  The deal involved the payment of US$7 M in cash plus VAT and the delivery of 21.33 M shares of VanGold and a promissory note for $2.5 M a year from closing. El Cubo has 508 K tonnes grading 194 gpt Ag, 2.44 gpt Au containing 3.17 M Oz Ag, 39,860 Oz Au as indicated resources and 1.45 M tonnes @ 214 gpt Ag, 2.78 gpt Au containing 10 M Oz Ag, 129,900 Oz Au as inferred resources.
  • Silver Spruce Resources Inc. signed a letter of intention (LOI) with Colibri Resource Corp. to acquire up to 50% interest in four concessions in Sonora, comprising two properties, Diamante 1 and Diamante 2 covering 1,057 hectares. The projects are separated by 700 meters, and in close proximity to other Colibri properties. The initial cash payment by Silver Spruce is to be of $75 K (Note.- The details of the deal are lengthy and involve a third party, please take a look to the appropriate press release if interested in it).
  • Empress Royalty Corp. executed the US$5 M silver stream agreement on the Telson Mining Corp. owned Tahuehueto project in Durango. “Empress has now executed the US$5M silver stream agreement on production from Telson’s Tahuehueto project in Mexico. The US$5M Stream is on 100% of the payable silver production from Tahuehueto for the first 1,250,000 payable ounces; thereafter, the percentage will stepdown to 20% of the payable silver production to a maximum of 10 years from first production after which the Stream terminates”.

ON SOCIAL RESPONSIBILITY

  • No Relevant News.

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

On the image below:  Disseminated and vein constrained sulfides in a porphyritic intrusive rock in split diamond core from Cerro San Pedro in San Luis Potosi. Picture by Jorge Cirett.

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

By Jorge Cirett

During the 9th week of the year (March 1st to March 7th, 2021), there were at least 34 press releases by companies working in Mexico. To note, ten companies posted exploration advances on their properties, three presented quarterly results, five posted on financing or share options (for C$2.25 M, C$23 M and C$12 M), three more on project development and six on corporate issues. ON MEXICO ISSUES, the Zacatecas government is promoting talks between Canadian mining companies and mining concession owners. Mining companies raise US$280 million for Mexican projects. First Majestic initiated and arbitration process under NAFTA against the Mexican government. ON EXPLORATION, in Sonora, Silver Viper presented the highest gold results in drilling to date at La Virginia; Heliostar Metals commenced drilling at La Lola and started exploration at Cumaro and Oso Negro; Tocvan Ventures informed on detailed mapping and sampling at Pilar. Tarachi Gold started the second phase underground drilling campaign at La Dura mine at its Tarachi project. In Chihuahua, Kootenay Silver initiated the second phase drilling at Columba; Mammoth Resources began an IP survey at Tenoriba. Monarca Minerals is seeking a key surface access permit at San Jose. In Sinaloa, Oroco Resource conducted a helicopter magnetic survey at Santo Tomas. In Zacatecas, Zacatecas Silver is to explore the Zacatecas Silver project; Alien Metals commenced drilling at Donovan 2. ON MINING, Endeavour Silver, Fresnillo PLC and Great Panther Mining released quarterly and/or full year 2020 reports. ON FINANCING, One World Lithium, Silver Tiger Metals and Santacruz Silver Mining released news on their financing rounds for C$2.25 M, C$23 M and C$12 M respectively. Zacatecas Silver started trading on the TSX. Candelaria Mining granted options for 1 M shares. ON RESOURCES AND DEVELOPMENT, Sonoro Gold released metallurgical tests results from Cerro Caliche. GR Silver released results from one drill hole at Plomosas. Galore Resources released results from five holes drilled in 2019.  ON DEALS AND CORPORATE ISSUES, Empress Royalty is acquiring a silver stream on production from Telson’s Tahuehueto mine in Durango. Orex Minerals is in a 40-60 joint venture with Pan American Silver to explore the Sandra Escobar project in Durango. Ganfeng´s increased interest (to 50%) in Bacanora Lithium has been authorized by China. First Majestic Silver requested an arbitration procedure under NAFTA regarding a tax dispute with the Mexican government. Silver One Resources completed the sale of three properties to Silverton Metals, which in turn completed its qualifying transaction. ON SOCIAL RESPONSIBILITY, Peñoles, Fresnillo PLC and First Majestic Silver informed on actions and awards received by the companies relating to social responsibilities.

ON MEXICO ISSUES

  • The Zacatecas government is promoting talks between Canadian mining companies and mining concession owners. 
  • Mining companies raise US$480 million for Latin America projects. Gold and silver projects obtained US$194 million and US$121 million respectively. Most of that amount is directed to Mexico (US$280 M), Argentina (US$88.6 M), Brasil (US$42.8 M) and Chile (US$26.7 M). Specific projects financed include Las Chispas (Sonora), San Antonio (Sonora), Tahuehueto (Durango) and Cordero (Chihuahua).
  • First Majestic initiated and arbitration request under NAFTA against the government of Mexico. The request comes after failed attempts by the company to engage in negotiations with the government.

ON EXPLORATION

  • Silver Viper Minerals Corp. reported good drilling results from its La Virginia project in Sonora. Highlighted true width intervals comprise 80.08 m @ 18 gpt Ag, 0.69 gpt Au; 11.89 m @ 363 gpt Ag, 21.2 gpt Au (including 0.3 m @ 738 gpt Au, 10,681 gpt Ag, 6.74% Pb, 7.11% Zn); 28.95 m @ 44 gpt Ag, 0.77 gpt Au; 10.16 m @ 42 gpt Ag, 1.06 gpt Au; 0.92 m @ 231 gpt Ag, 11.80 gpt Au; 2.59 m @ 52 gpt Ag, 0.94 gpt Au; 1.52 m @ 78 gpt Ag, 1.07 gpt Au. “The upper portions of hole LV21-289 (azimuth 090, dip -450 ) encountered mineralized stringer intervals thought to represent the southern projection of the Western Zone. More consistent mineralization was encountered starting at 280 metres down hole, returning a down hole length measuring 130 metres core length with an average grade of 18 g/t silver and 0.69 g/t gold. Beneath this interval, a well mineralized breccia zone was encountered, starting at 424.85 metres down hole for 19.30 metres core length averaging 363 g/t silver and 21.2 g/t gold, and thought to represent the projection of El Rubi structure”.
  • Zacatecas Silver Corp. described its Zacatecas Silver Project in Zacatecas. The 7,826 ha Zacatecas Silver property in the Zacatecas district, includes the Panuco deposit and the Muleros, El Cristo and San Manuel-San Gill prospects.  Panuco has an historic resource of 19.47 M Oz Ag in 3.95 M tonnes @ 153 gpt AgEq (136 gpt Ag, 0.01% Pb, 0.11% Zn). At Muleros three veins can be traced for 3 km; El Cristo is the NW extension of the Veta Grande system, same that is reported to have produced over 200 M Oz Ag; San Manuel-San Gill is a relatively unexplored vein system and an 800 m long hematitic breccia is also present.
  • Alien Metals Ltd. announced the commencement of its drilling program at the Donovan 2 copper gold project in Zacatecas. The 2,500 m of drilling is to test targets defined by an IP geophysical survey conducted late in 2020. “Pursuant to the terms of the Earn-in Agreement, Capstone can acquire a 65% interest in Donovan 2 through committed expenditure and cash payments totalling ~US$3.9million. Capstone can move to an 80% interest in the Project through free-carrying Alien to completion of a prefeasibility study”.
  • Kootenay Silver Inc. initiated a 5,000 meters core drilling program at Columba, Chihuahua. “The program will focus on step out and infill drilling on impressive results to date in the high-grade F vein and its associated hanging wall vein, a new discovery blind to surface. Focus will then shift to expanding on numerous other high-grade results such as found in holes CDH 20-030 (415 gpt silver over 11.15 meters including 721 gpt silver over 4.07 meters) in the JZ area and CDH 20-082 (1,186 gpt silver over 4.6 meters) in the B Vein”.
  • Oroco Resource Corp. completed the airborne component of a helicopter magnetics survey over the Santo Tomas project in Sinaloa. The survey comprised 2,231 line-kilometers with tie-line separations of 50 m and 500 m in east-west and north-south orientations respectively; processed results are to be received within two months. Meanwhile, 3D IP surveys continue on the Brasiles zone. Oroco holds a 61.4% interest that can be increased to 81.0% in the core 1,173 ha of the Santo Tomas project, and a 77.5% interest in 7,808 ha surrounding and adjacent to the core concession.
  • Mammoth Resources Corp. has begun induced polarization/magnetometer surveys to infill most of the 60% of the 6-kilometer trend not covered by the previous geophysical survey at Tenoriba, Chihuahua. A total of approximately 70 line-kilometers are to be completed. 
  • Heliostar Metals Ltd. commenced exploration of its projects in Sonora. An initial 1,500 m drilling program has begun at La Lola, focusing in the up to 40 meters wide La Barra vein and its potential to depth. At Cumaro, will map and sample extensions to veins that have ore grade intercepts on the neighboring SilverCrest’s Picacho property. “Exploration at the Oso Negro project will focus on mapping and sampling outcropping veins that yielded samples up to 2,680 grams per tonne (g/t) silver and 100.5 g/t gold. These veins have never been drilled”.
  • Tocvan Ventures Corp. informed detailed mapping and sampling of key targets areas have taken place at its Pilar project in Sonora. The aim of the work is to advance these targets to drill ready status, for a phase II drill program. The Main Zone Extension comprises 800 m southeast of the Main Zone, with highly anomalous gold in soils and rock grab samples and an historic hole with a 13.5 m @ 5.6 gpt Au, 22 gpt Ag intercept. The 4-Trench zone is a 600 m trend with highly anomalous gold in soils and rock grab samples and an historic hole intercept of 7.5 m @ 3.3 gpt Au, 31 gpt Ag. The project has over 17,700 meters of historic core and RC drilling, with intercepts of up to 61 m @ 0.8 gpt Au; 16.5 m @ 53.5 gpt Au, 53 gpt Ag; 13 m @ 9.6 gpt Au; 9 m @ 10.2 gpt Au, 46 gpt Ag.
  • Monarca Minerals Inc. continues to advance the permitting process for drilling of the San Jose project in Chihuahua (near the USA border). Currently the company is in negotiations with the authorities of communal lands for their permit to proceed with drilling activities in their land.
  • Tarachi Gold Corp. started the second phase of underground drilling at the historic La Dura mine at its Tarachi project in Sonora. “In addition to the underground drilling at La Dura, a surface RC drill rig will be mobilized to the Jabali mineral concession in mid-March to test the 400m-long area between the La Dura mine and the artisanal workings at Zaragoza…”.

ON MINING

  • Endeavour Silver Corp. released its financial results for the Q4 and 2020 full-year. The company operates three mines in Mexico: Guanaceví in Durango, Bolañitos in Guanajuato and El Compas in Zacatecas. The company produced 3.5 M Oz Ag, 37,139 Oz Au (7.1 M Oz AgEq) at cash cost $5.55 per Oz Ag and at an all-in sustaining cost of $17.59 per Oz Ag, both net of gold credits. The year-end balance sheet was $61.1 M, with working capital at $70.4 M and a long term debt of $6.1 M.
  • Fresnillo PLC. Presented its financial results for 2020, a year during which it produced 53 M Oz Ag and 769.6 K Oz Au. At Fresnillo, cash cost stands at $5.9 and AISC at $12.92 per silver ounce; At Saucito, cash cost stands at $0.8 and AISC at $6.94 per silver ounce. At San Julián Veins (Chihuahua), cash cost stands at ($6.0) and AISC at $5.04 per silver ounce; At San Julián DOB (Chihuahua), cash cost stands at $7.0 and AISC at $8.85 per silver ounce; At Ciénega (Durango), cash cost stands at ($276.2) and AISC at $618.32 per gold ounce; At Herradura (Sonora), cash cost stands at $727.9 and AISC at $881.92 per gold ounce; Finally, at Noche Buena (Sonora), cash cost stands at $1,158.5 and AISC at $1,502.92 per gold ounce. Exploration expenses for the year were $107.3 M. Shafts at Fresnillo and Juanicipio are being bored to 1,000 meters of depth; commissioning of Juanicipio is expected for Q4 2021, with a forecasted yearly production of 11.7 M Oz Ag, 43.5 K Oz Au. “the longer-term prospects for gold are good, supported by the potential new mines at Rodeo and Orisyvo”. Cash position at the end of the year was US$1,070 M.
  • Great Panther Mining Ltd. reported consolidated financial results for 2020, including figures from its Topia (Durango) and Guanajuato Mine Complex operations in Mexico. During the period 50,868 tonnes were mined in Mexico, milling 49,498 tonnes @ 270 gpt AgEq. 

ON FINANCING

  • Zacatecas Silver Corp. announced its common shares have begun trading on the TSX Venture Exchange (Zacatecas Silver, Zacatecas).
  • One World Lithium Inc. closed its previously announced C$1.5 M non-brokered private placement with an oversubscription that brought the total in gross proceeds to C$2.25 M. The company granted incentive stock options to certain of its directors, officers, management and consultants (Salar del Diablo, Baja California).
  • Silver Tiger Metals Inc. closed it previously announced bought deal offering for gross proceeds of C$23 M. The underwriters were paid a 6% commission on the gross proceeds (El Tigre, Sonora).
  • Candelaria Mining Corp. granted incentive stock options to employees, directors and officers of the company for 1.02 M shares (Pinos, Guanajuato; Caballo Blanco, Veracruz).
  • Santacruz Silver Mining Ltd. announced a non-brokered private placement intended to raise up to C$12 M (Zimapan, Hidalgo).

ON RESOURCES AND DEVELOPMENT

  • Sonoro Gold Corp. reported on metallurgical studies realized at Cerro Caliche Sonora. Bottle roll tests were realized on sample materials from the Japoneses, Cuervos, El Colorado/Cabeza Blanca and Buena Suerte zones, resulting in 80.3% recoveries for gold and 27.2% for silver.
  • GR Silver Mining Ltd. reported high-grade results from one drill hole in the San Juan area at Plomosas, Sinaloa. The highlighted core-length intercept is 5.7 m @ 611 gpt Ag, 0.04 gpt Ag, 0.5% Pb, 1.7& Zn, 0.1% Cu (685 gpt AgEq), including 1.7 m @ 1,762 gpt Ag, 0.10 gpt Au, 1.3% Pb, 4.9% Zn, 0.2% Cu and 0.7 m @ 3,755 gpt Ag, 0.03 gpt Au, 2.5% Pb, 9.7% Zn, 0.5% Cu.  
  • Galore Resources Inc. announced the return of field work and the recent receipt of additional assays from five holes of the drill program executed at El Alamo during 2019. A loan from the CEO, Mike McMillan provided the necessary funds for logging and assaying of the 2019 core. Highlighted core length intervals comprise 21.20 m @ 0.69 gpt Au, including 1.20 m @ 8.89 gpt Au; 4 m @ 0.54 gpt Au; 10.21 m @ 1.14 gpt Au, including 1.10 m @ 4.70 gpt Au; 59.85 m @ 0.32 gpt Au, including 3.2 m @ 1.07 gpt Au.

ON DEALS AND CORPORATE ISSUES

  • Empress Royalty Corp. is in advanced discussions to acquire a US$5 M silver stream on production from Telson Mining Corp.’s Tahuehueto project in Durango. “The Stream is expected to be on 100% of the payable silver production from Tahuehueto for the first 1,250,000 payable ounces; thereafter, the percentage will step-down to 20% of the payable silver production”.
  • Orex Minerals Inc. entered into an agreement with Pan American Silver Corp. to further explore and develop the Sandra-Escobar Project, in Durango. “The Project is a consolidation of two groups of claims, each controlled by the two Joint Venture participants. Orex and Pan American own a 40% and 60% interest, respectively, in Empresa Minera Sandra-Escobar, S.A. de C.V. (the “Joint Venture Company”), the new joint venture company formed to hold the Project. Orex will be the initial operator of the Project”.
  • Bacanora Lithium PLC. informed the receipt of all relevant approvals and consents from the authorities in the People’s Republic of China and receipt of funds by Sonora Lithium Ltd.. These were conditions for the completion of the increased investment in Sonora Lithium by Ganfeng Lithium Co. Ltd., resulting in Ganfeng owning 50% of the share capital of Sonora Lithium (Sonora Lithium, Sonora).
  • First Majestic Silver Corp. submitted a request for arbitration to the International Centre for Settlement of Investment Disputes based on Chapter 11 of the North American Free Trades Agreement (NAFTA). The government of Mexico has refused to engage in negotiations to resolve the dispute. “The Company believes that the Government’s actions are contrary to the terms of the Advance Pricing Agreement, which established the methodology for determining PEM’s revenues and taxes for the 2010 to 2014 fiscal years, and which, according to the Company’s Mexican counsel remains valid in accordance with the Mexican Federal Tax Code unless and until it is nullified by a final instance Court. In addition, the Government of Mexico has refused to participate in the Mutual Agreement Procedures under three international double-taxation treaties signed by Mexico” (San Dimas, Durango).  
  • Silver One Resources Inc. completed the sale of its Mexican silver exploration projects to Silverton Metals Corp.. for $6 M as follows: $1.25 M in cash on closing, issue 4.37 M shares, $750 K in cash at 18 months, $500 K in cash at 24 months and a 1.5% NSR, of which 1% can be bought back by Silverton with a payment of US$500 K for each of the properties (see below).
  • Silverton Metals Corp. (formerly Plymouth Realty Capital Corp.) and Silver One Resources Inc. announced that Silverton has completed its previously announced qualifying transaction with the acquisition of Silver One’s Peñasco Quemado (Sonora), La Frazada (Nayarit) and Pluton (Durango) projects.

ON SOCIAL RESPONSIBILITY

  • Peñoles and Fresnillo PLC informed on actions on biodiversity conservation activities at each of its operations in Mexico.
  • The Ethisphere Institute released a list of 135 companies that have ethics as one of its key directives in the world, which includes two Mexican companies: Grupo Bimbo and Fresnillo, with the latter being one of only three companies from the mining industry.
  • First Majestic Silver Corp. received the 2021 Socially Responsible Business Distinction Award (Reconocimiento de Empresa Socialmente Responsable) granted by the Mexican Centre for Philantropy and the Alliance for Corporate Social Responsibility. The awards were for its three operating mines: San Dimas (Durango), Santa Elena (Sonora) and La Encantada (Coahuila).

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

On the image below:  Ricardo Ramonett checking epithermal low sulfidation quartz veining on andesitic tuffs in Sinaloa. Picture by Jorge Cirett.