Minerals

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

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By Jorge Cirett                                            

During the 33rd week of the year (August 14th to August 20th, 2023), 18 companies working in Mexico posted news releases. Two companies informed on exploration work at its properties, three reported second quarter 2023 results and one more of a fatality on an underground mine. One company informed on a private placement and one more on incentive option granting to directors, employees and consultants. Four companies informed on technical reports, updated mineral resources, drilling results and metallurgical testing on their projects. The closing on the transfer of a property in Durango was announced. ON MEXICO ISSUES, Camimex ask for the government intervention to reach an end to the Peñasquito mine strike, which begun in early June, and also for speedier action on environmental permitting. ON EXPLORATION, in Sonora, Colibri Resource received the permit to drill at Evelyn. In Coahuila, Monumental Minerals updated on its drilling program at Jemi. ON MINING, Guanajuato Silver reported a fatality on one of its mines. Sierra Metals, Discovery Silver and Americas Gold and Silver released production results for Q2 2023. ON FINANCING, Barksdale granted options to directors, employees and consultants. Oroco Resource raised $1.75 M. ON RESOURCES AND DEVELOPMENT, Golden Tag updated the mineral resource estimate for La Parrilla, in Durango. GR Silver Mining released drilling results from the San Marcial deposit on its Plomosas project in Sinaloa. Sierra Madre Gold and Silver released drilling results from the Tepic project in Nayarit. Silver Tiger Metals released drilling results from El Tigre, in Sonora. Vizsla Silver announced positive metallurgical test results for the Copala resource area on its Panuco project in Sinaloa. ON DEALS AND CORPORATE ISSUES, First Majestic Silver and Golden Tag Resources closed the transaction on La Parrilla mine in Durango. ON SOCIAL RESPONSIBILITY, no relevant news. ON MEXICO ISSUES

  • Camimex (Cámara Minera de México) asks relevant authorities to contribute in the solution to the Peñasquito strike in Zacatecas, and to act more speedily on the granting of environmental permits needed.

ON EXPLORATION

  • Colibri Resource Corp. received the necessary permit to drill up to 2,000 m on the Evelyn property in Sonora. The program is focusing on the Main Zone and West El Sahuaro areas.
  • Monumental Minerals Corp. provided an update on the current drill program at the Jemi project in Coahuila. To date 1,800 m have been drilled targeting rare earth mineralization, with 12 holes completed and a final one underway, with results expected in about three weeks. “Numerous intrusive peralkaline dykes, sills, and veins, with identifiable eudialyte … were intersected in the completed holes … These peralkaline dykes and sills tend to occur in structural zones that appear to be adjacent to larger bodies of syenitic intrusions and are associated with irregular skarn mineralization at the contacts with the host carbonate sedimentary rocks. These zones are as much as several tens of meters in width downhole. The syenite may be the feeders for the peralkaline features (parental rocks) and pegmatitic intrusive rocks. Light rare earth element (LREE) bearing minerals such as monazite and xenotime have also been identified by visual inspection.”

ON MINING

  • Guanajuato Silver Co. reported an employee fatality on August 12 due to an accident at the San Ignacio mine in Guanajuato.
  • Sierra Metals Inc. reported results for the quarter, including figures from its Mexican operations. At Bolivar, in Chihuahua, 4,640 tonnes were milled per day for a total of 406 K tonnes in the period, to produce 10.7 M Lb CuEq at cash cost $1.62 and an AISC of $3.02 per Lb CuEq. The Cusi mine in Chihuahua (a non-core asset) operated at 596 tpd and processed 51.7 K tonnes during the period to produce 241 K Oz AgEq.
  • Americas Gold and Silver Corp. reported consolidated financial and operational results for the quarter ended June 30, 2023, including figures from its Mexican operations. At Cosalá, in Sinaloa, 335 K Oz Ag, 3.2 M Lb Pb, 9.6 M Lb Zn were produced at cash cost $4.51 and an AISC of $11.10 per Oz AgEq.
  • Discovery Silver Corp. announced its financial results for the second quarter 2023 and provided an update on the quarter and subsequent events. The 2022 Environmental, Social and Governance (ESG) report was released. A marketed public offering raised C$51.75 M, “Completion of the reserve expansion and definition component of our Feasibility Study program consisting of an additional 35,000 m of drilling in over 100 drill holes completed since the cut-off for the Pre-Feasibility Study”. As of June 30, 2023, Discovery had cash and cash equivalents of $68 M.

ON FINANCING

  • Barksdale Resources Inc. announced the granting of incentive stock options to its directors, employees and consultants for up 1.3 M shares at a price of $0.59 per share. (San Javier, Sonora).
  • Oroco Resource Corp. closed a non-brokered private placement, raising $1.75 M (Santo Tomás, Sinaloa).

ON RESOURCES AND DEVELOPMENT

  • Golden Tag Resources Ltd. completed an updated mineral resource estimate for La Parrilla Silver Mine Complex in Durango. The resource includes 22 veins within the Rosarios, San Marcos and Quebradillas underground mines, currently on care and maintenance. Indicated resources are estimated at 615 K tonnes @ 176 gpt Ag, 0.08 gpt Au, 1.55% Pb, 1.39% Zn (or 263 gpt AgEq), containing 3.48 M Oz Ag, 1,700 Oz Au, 9.6 K tonnes Pb, 8.5 tonnes Zn, or 5.19 M Oz AgEq. Inferred resources stand at 1.26 M tonnes @ 191 gpt Ag, 0.12 gpt Au, 0.99% Pb, 1.01% Zn (or 256 gpt AgEq), containing 7.73 M Oz Ag, 5,000 Oz Au, 12.4 K tonnes Pb, 12.7 K tonnes Zn, or 10.33 M Oz AgEq.
  • GRSilver Mining Ltd. announced results from one step-out drill hole outside the mineral resource boundary in the San Marcial area of its Plomosas project in Sinaloa. Highlighted core length intervals comprise 20.2 m @ 187 gpt Ag, 0.05 gpt Au, 0.3% Pb, 0.7% Zn (including 5.7 m @ 513 gpt Ag, 0.05 gpt Au, 0.4% Pb, 0.8% Zn, which includes 0.8 m @ 2,041 gpt Ag, 0.14 gpt Au, 0.8% Pb, 1.9% Zn). The hole “intersected a multistage quartz-calcite-sulfide zone composed of irregular veins and breccias crosscutting other hydrothermal breccias …”.
  • Sierra Madre Gold and Silver Ltd. announced results from six additional diamond drill holes of the current program at its Tepic project in Nayarit. The holes targeted the Taunas and Veta Tomas structures, with highlighted intercepts comprising 2.50 m @ 296 gpt Ag, 1.15 gpt Au; 0.60 m @ 111 gpt Ag, 2.06 gpt Au; 4.85 m @ 84 gpt Ag, 0.24 gpt Au; 10.05 m @ 158 gpt Ag, 0.46 gpt Au; 4.35 @ 258 gpt Ag, 0.68 gpt Au; 1.0 m @ 92 gpt Ag, 0.36 gpt Au. “The Tepic Project is a +2,600-hectare project where the previous operator completed 149 core holes totaling more than 31,000 meters. “
  • Silver Tiger Metals Inc. released results from drilling at El Tigre project in Sonora. Highlighted core length results from the Sooy vein and Sulfide Zone comprise 1.0 m @ 0.01 gpt Au, 178 gpt Ag, 0.22% Cu, 1.0% Pb, 1.7% Zn; 10.7 m @ 0.06 gpt Au, 74 gpt Ag, 0.08% Cu, 0.5% Pb, 0.5% Zn (including 2.3 m @ 0.06 gpt Au, 191 gpt Ag, 0.22% Cu, 1.4% Pb, 1.6% Zn); 4.7 m @ 0.15 gpt Au, 344 gpt Ag, 0.44% Cu, 0.6% Pb, 1.0% Zn; 0.5 m @ 0.26 gpt Au, 1,294 gpt Ag, 0.62% Cu, 3.8% Pb, 6.3% Zn; 3.4 m @ 1.57 gpt Au, 592 gpt Ag, 0.08% Cu, 0.4% Pb, 0.7% Zn; 10.5 m @ 1.98 gpt Au, 151 gpt Ag, 0.14% Cu, 1.4% Pb, 2.9% Zn (including 5.3 m @ 3.87 gpt Au, 249 gpt Ag, 0.22% Cu, 2.2% Pb, 4.4% Zn); 4.0 m @ 0.11 gpt Au, 786 gpt Ag, 0.68% Cu, 0.6% Pb, 1.3% Zn; 0.8 m @ 0.16 gpt Au, 1,549 gpt Ag, 1.73% Cu, 0.2% Pb, 0.7% Zn.
  • Vizsla Silver Corp. announced positive preliminary metallurgical test results for the Copala resource area at its Panuco project in Sinaloa. Drill core was first crushed and the subject to simple bulk flotation. Flotation + regrind + Cyanide Leach on flotation concentrate, coupled with Cyanide Leach of Rougher Tails recovered 90.6% Au, 93.7% Ag. “Further test work of material from the Napoleon, Tajitos and Copala deposits is planned to better understand and optimise grind size, cyanide consumption, leach kinetics, residence times and recoveries.”

ON DEALS AND CORPORATE ISSUES             

  • First Majestic Silver Corp. and Golden Tag Resources Ltd. closed the transaction on the La Parrilla past producing mine in Durango. First Majestic received 143.7 M shares of Golden Tag (US$20 M), and is to receive up to US$13.5 M in the form of three milestone payments either in cash or shares. The first repayment of US$2.7 M is due 18 months on the closing, the second US$7.75 M payment upon receipt of a resource estimate of 5 M Oz AgEq in reserves or 22 M Oz AgEq in measured and indicated resources and the third US$5.05 M payment upon receiving a resource estimate of 12.5 M Oz Ag Eq measured and indicated resources in a new zone on La Parrilla. In addition, First Majestic purchased 18 M shares of Golden Tag and 9 M warrants. Following the closing First Majestic owns 40.8% of Golden Tag shares, and if the warrants are exercised will own 42.2% on a partially diluted basis.

ON SOCIAL RESPONSIBILITY

  • No relevan news.

On the image below: Silicified vein 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 June 2023

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By Jorge Cirett                                             

During the 25th week of the year (June 19th to June 25th, 2023), 16 companies working in Mexico posted news releases. Three companies informed on exploration work at its properties, while there was no relevant news on mining, other than the continuation of a Union strike on Peñasquito. Three companies informed on the closing of financing tranches or the arrangement of new placements. Four companies reported on work at their advanced properties. One company updated on financing moves to pay for the acquisition of an idle property and one more on the plans for recommence mining on their recent acquisition. ON MEXICO ISSUES, Newmont declared force majeure on contracted base metal production due to the Union strike at Peñasquito. The first all-encompassing suspension on the recently passed Mining Law was granted to a Mexican mining company. The Sindicato Nacional de Mineros brought a complaint before the fast-response mechanism of the T-MEC, accusing Grupo Mexico of negating Union liberty since 2007. Grupo Mexico responded the San Martín mine operates with the free decision of its unionized workers, and that workers strongly support the current Union.  ON EXPLORATION, in Sonora, Colibri Resource updated on work at El Plomo project. In Coahuila, Monumental Minerals announced a maiden drill program at its rare-earth Jemi project. In Durango, Silver Dollar entered into a surface access agreement with the local Ejido at Nora. ON MINING, no relevant news. ON FINANCING, Canuc Resources closed a CAD$1.3 M financing round. Sonoro Gold closed the first tranche of a C$3 M financing, raising C$1.7 M. Coeur Mining arranged a private placement for $19 M. ON RESOURCES AND DEVELOPMENT, Prime Mining reported good drilling results below the resource shell at Los Reyes, in Sinaloa. Orla Mining released infill drilling results from the Sulphide zone at Camino Rojo in Zacatecas, and also from the Deep Extension zone and from an exploration play 7 km away. Aztec Minerals updated on geologic and geochemical information at Cervantes, in Sonora, and is preparing an RC drilling campaign. Discovery Silver provided an update on work at the Cordero project in Chihuahua. ON DEALS AND CORPORATE ISSUES, Excellon Resources updated on La Negra acquisition in Queretaro, and the financing arrangements being sought to support it. Impact Silver announced its plans for refurbishing the Plomosa mine and plant in Chihuahua. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • The first suspension with all-encompassing application against the recently approved Mining Law was granted by a federal judge from Mexico City on June 21, 2023, to Cobre del Mayo, the company that exploits the Piedras Verdes copper mine in Sonora. Before this ruling, the only suspensions admitted were for the automatic rejection of previously filed applications for mining concessions.
  • The Sindicato Nacional de Mineros (National Miners Union, headed by Napoleón Gómez Urrutia) presented a complaint against Grupo México under the fast response mechanism of the T-MEC, accusing the company of negating Union liberty and failure to comply with legal rulings on its favor, relating to a strike commenced by the Union in 2007 in which safety and contractual obligations were demanded. (It is much more likely that Napoleón Gómez Urrutia was aiming for the invalidation of a court arrest warrant on him related to the subtraction of 55 M dollars granted to workers of the Cananea mine on the sale of the property to Grupo Mexico. Napoleón Gómez Urrutia has legal immunity by its position as a senator). Grupo Mexico replied that its workers strongly back the current Union, and that the San Martín mine in Zacatecas operates with the free decision of its unionized workers.
  • Newmont declared “Force Majeure” on the production of lead and zinc that is to impact on contract obligations. The company was to produce about 200 K tonnes Zn and 80 K tonnes Pb on 2023, but the current Union strike is going to impact on its production forecast. Operations were suspended on June 7, 2023, by the Union, which is demanding an increase of the participation on the profit obtained by the company from 10% to 20%.

ON EXPLORATION

  • Colibri Resource Corp. reported results from geological mapping and outcrop sampling at the Pavo Real target on the Plomo property, EP project in Sonora. A 0.5 Km by 0.5 km area was selected and 90 grab samples collected, with 38 samples returning over 0.1 gpt Au and 13 samples over 1.0 gpt Au, peaking at 9.94 gpt Au. “The higher-grade samples also commonly include veinlets mapped as jasperoid which in thin section was determined to be a very fine-grained assemblage of limonite and hematite and interpreted to possibly be derived from a primary Fe-carbonate bearing vein assemblage. The mineralized tourmaline bearing breccia and stock work samples are massive to strongly foliated where foliation consistently has a north-northwest strike and moderate northeast dip”.
  • Monumental Minerals Corp. announced a maiden drill program planned for its Jemi rare earth element project in Coahuila. Exploration work has resulted in six high priority drill targets for dysprosium (Dy), terbium (Tb), neodymium (Nd), Praseodymium (Pr), niobium (Nb) and tantalum (Ta). “The goal of the drill program is to define and delineate the source of REE-mineralized (eudialyte +/- aegirine rich) intrusive dykes and sills”. The program envisages 1,800 m of drilling in 6 holes.
  • Silver Dollar Resources Inc. entered into a surface rights agreement with the Ejido Peña, covering the area of the Nora project in Durango.

ON MINING

  • No Relevant News.

ON FINANCING

  • Canuc Resources Corp. announced the closing of the first tranche of a non-brokered private placement financing, raising CAD$1.28 M in gross proceeds. (San Javier, Sonora).
  • Sonoro Gold Corp. closed the first tranche of the C$3 M previously announced non-brokered private placement, for gross proceeds of C$1.7 M. Directors and officers participated in the offering for $1.32 M, constituting a related party transaction at the TSX Venture Exchange (Cerro Caliche, Sonora).
  • Coeur Mining Inc. arranged a private placement for gross proceeds of $19 M (C$25 M). “The proceeds of the Offering will be used exclusively for qualifying Canadian Exploration Expenditures” (Palmarejo, Chihuahua).

ON RESOURCES AND DEVELOPMENT

  • Prime Mining Corp. reported drill results from four holes at the Z-T area of the Los Reyes project in Sinaloa. Two of the holes are located 100 to 200 m below the recently announced resource pit shell. Highlighted true width core intervals comprise 13.25 m @ 3.80 gpt Au, 82 gpt Ag (including 3.65 m @ 8.15 gpt Au, 89 gpt Ag); 11.40 m @ 3.96 gpt Au, 88 gpt Ag (including 2.00 m @ 19.40 gpt Au, 168 gpt Ag). “Together the mineralization in these drill holes further defines two high-grade mineralized shoots separated by 250 m. These intercepts open a significant area of exploration upside relative to the MRE pit shell for the Z-T area.”
  • Orla Mining Ltd. provided an update on exploration at its Camino Rojo project in Zacatecas. Highlighted core length results comprise 93.0 m @ 2.87 gpt Au; 56.9 m @ 3.26 gpt Au; 34.0 m @ 3.11 gpt Au (including 5.6 m @ 10.29 gpt Au); 43.0 m @ 2.12 gpt Au; 38.5 m @ 2.00 gpt Au; 63.0 m @ 1.89 gpt Au; 62.6 m @ 1.62 gpt Au (including 6.0 m @ 7.72 gpt Au); 24.5 m @ 3.18 gpt Au; 12.0 m @ 4.18 gpt Au; 29.0 m @ 3.16 gpt Au; 42.0 m @ 3.05 gpt Au in Camino Rojo Sulphides infill, further 8.5 m @ 3.52 gpt Au, 26 gpt Ag, 0.26% Cu, 3.6% Zn; 3.3 m @ 4.54 gpt Au, 7 gpt Ag, 0.06% Cu, 5.5% Zn; 1.5 m @ 15.4 gpt Au, 7 gpt Ag, 0.04% Cu, 4.4% Zn in the Camino Rojo Sulphides Deep Extension zone, and 10.5 m @ 0.69 gpt Au (including 1.5 m @ 4.02 gpt Au); 3.3 m @ 0.94 gpt Au; 1.5 @ 2.72 gpt Au; 1.3 m @ 61.2 gpt Au in the Guanamero zone of the Camino Rojo Regional Exploration. Polymetallic Au-Ag-Zn massive to massive sulphide mineralization has been confirmed in holes testing below the Caracol Formation hosted sulphides.  
  • Aztec Minerals Corp. received permits for a planned two-stage reverse circulation (RC) drilling program at its Cervantes project in Sonora. The first stage is to commence on Q3 2023 utilizing information gathered on the mapping and sampling of 4,600 m of roads. The quartz-feldspar porphyry is more extensive than the feldspar porphyry, and many of the sediments are less continuous and often as xenolithic rafts and roof pendants over the intrusive rocks. There is widespread phyllic alteration, minor potassic alteration as secondary biotite and zones of tourmaline mineralization; with gold showing positive relationship with vein intensity and silicic and phyllic alterations, and inverse relationship with argillic alteration. Au has strong correlation with As, Cu, Bi, Ag and W. With Mo being strongly distal. A marked Cu anomaly to the northeast associated with tourmaline and secondary biotite alteration. The focus is “to continue to define the open pit, heap leach gold potential of the porphyry oxide cap at California, test the down dip extensions of the silicic-phyllic alteration in the Qfp intrusive for deeper copper-gold porphyry sulfide mineralization underlying the oxide cap, and test for extensions of the California North target.”
  • Discovery Silver Corp. provided a project update on its Cordero project in Chihuahua. The company is to initiate the environmental permitting (Manifiesto de Impacto Ambiental, or MIA) process with the submission to SEMARNAT (Environmental regulator), and also “recently secured the surface rights that correspond with the planned open pit and key infrastructure locations at Cordero as well as a significant volume of water rights ….. Discovery also recently engaged M3 Engineering & Technology Corp to complete a technical review of the scope and cost to source water from existing water treatment plants in the region …… An impact assessment study and power installation study by Mexican electrical infrastructure authority CENACE were delivered earlier this year, with confirmation that there is sufficient capacity in the existing power grid to supply the Project with power for operations at peak throughput levels”. The company is also working on the front-end engineering design work for the feasibility study (FS), a resource update, metallurgical test work, process design, mine planning, geotechnical work and tailings study.

ON DEALS AND CORPORATE ISSUES             

  • Excellon Resources Inc. updated on the previously announced La Negra mine acquisition in Queretaro, from Orion Resource Partners. Excellon is focused on a successful completion of the C$10 M in gross proceeds financing, “but in parallel is reviewing potential operating scenarios that would allow Excellon to close on a lower level of initial financing that supports initiating advancement of La Negra while also adequately capitalizing the Company’s broader business”. The company is also in discussions with the holders of convertible debentures and assessing interim financing options as well as divestitures, mergers, or spin-offs to provide near-term liquidity.
  • Impact Silver Corp. updated on its plans for the recently acquired Plomosas mine in Chihuahua. Restart of production is scheduled for the second half of 2023, with design capacity to be approached on the first half of 2024. Underground equipment is under maintenance and repairs, mill foundations are being replaced, and the ball mill and conveyor-crushing systems are being upgraded. A new tailings dam is in the design and permitting stage, while alternate electric power options under evaluation, as well as changes in mining methods and mineral processing. Underground stations for drilling are in preparation, while drilling permits have been submitted for the surface program. Plomosas has a current JORC resource of 215 K tonnes @ 13.5% Zn, 6.3% Pb, 34 gpt Ag in indicated resources and 772 K tonnes @ 13.1% Zn, 3.0% Pb, 19 gpt Ag of inferred resources at a 3% Zn cut-off.

ON SOCIAL RESPONSIBILITY

  • No Relevant News.

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

Mexico’s Best Drilling Intercepts on Q1 2023

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Drilling results released during the quarter show that there are a few projects in Mexico that report spectacular gold intercepts. The best intercept by far was by Torex Gold with 28.40 m @ 40.48 gpt Au (or 1,150 gpt*m Au) on definition drilling at Media Luna in Guerrero. Other companies to report several intercepts of more than 100 gpt *m Au include Alamos Gold in Mulatos, GoGold Resources at Los Ricos South in Jalisco and Orla Mining on Camino Rojo Sulfide in Zacatecas. The variety of mineralization styles on the highest grade intercepts is striking: Media Luna is a skarn, Mulatos a high sulfidation epithermal system, Los Ricos South a structurally controlled intermediate sulfidation epithermal system and Camino Rojo a complex intrusion/skarn/intermediate sulfidation epithermal system.

The deposits that returned between 20 and 100 gpt *m Au report from mostly structurally controlled low or intermediate epithermal mineralization, like Vizsla’s Panuco project in Sinaloa, Prime Mining’s Los Reyes in Sinaloa, Bear Creek’s Mercedes in Sonora, GR Silver’s Plomosas in Sinaloa, Gold Resource’s Don Diego in Oaxaca, Guanajuato Silver’s San Ignacio in Guanajuato, Almadex’s San Pedro in Jalisco and GoGold’s Los Ricos North in Jalisco. The deposits styles returning between 10 and 20 gpt*m Au include intermediate sulfidation epithermal (El Tigre, San Marcial), orogenic gold (El Picacho), porphyry copper (Santo Tomás) and complex intrusive/skarn/intermediate sulfidation mineralization (Cordero).

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

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By Jorge Cirett

During the 9th week of the year (February 27th to March 5th, 2023), 11 companies working in Mexico released news on their properties. One company provided an update on 2022 work on its properties, and plans for 2023, while one more company informed on underground rehabilitation progress at an historic mine within its exploration play. Three companies informed on Q4 2022 production and financial situation. No financing rounds this week announced by companies working in the country. Four companies released drilling results on their advanced properties, and one more from its currently producing operation. A company announced an option on the acquisition of a valuable inner claim. ON MEXICO ISSUES, no relevant news. ON EXPLORATION, in Sonora, Minaurum Gold informed on rehabilitation work of underground workings at Alamos. In Jalisco, Almadex Minerals provided an update on Pedro. In Puebla, Almadex Minerals updated on 2022 work at Victoria, and plans for 2023. ON MINING, Argonaut Gold, Aura Minerals and Endeavour Silver released Q4 2022 production or/and financial production reports. ON FINANCING, no relevant news. ON RESOURCES AND DEVELOPMENT, Silver Tiger Metals released drilling results from the sulfide zone at its El Tigre project in Sonora. Prime Mining announced results from drilling at targets outside of the mineral resource limits at Los Reyes in Sinaloa. Gold Resource released results from drilling at the Don David mine in Oaxaca. GR Silver Mining informed on results from drilling at the Plomosas mine area of its Plomosas project in Sinaloa. Vizsla Silver reported drill results from infill drilling from the Copala structure at its Panuco project in Sinaloa. ON DEALS AND CORPORATE ISSUES, Riverside Resources signed an option agreement to acquire an important inner claim within its La Union project in Sonora. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • No Relevant News.

ON EXPLORATION

  • Almadex Minerals Ltd. provided an update on its exploration plays and plans for 2023, including information on its Mexican properties. At the San Pedro project in Jalisco, a high-sulfidation acid sulphate lithocap alteration and sulfide bearing breccia zones with elevated base and precious metals were tested with four holes. The bests intervals comprise 4.51 m @ 0.03 gpt Au, 657 gpt Ag; 1.3 m @ 846 gpt Ag; 2.9 m @ 7.45 gpt Au. Mapping and sampling of the Victoria project in Puebla on epithermal silver rich veins was conducted for a planned 2023 drill program. In March the company will conduct a surface mapping program on the Yago project, located in Nayarit.
  • Minaurum Gold Inc. provided an update in underground rehabilitation work at the Promontorio mine on its Alamos project in Sonora. “Our underground rehabilitation has now accessed 600 metres of an estimated 1.2 kilometres of workings …. The workings continue to be in good and stable condition. Backfill material continues to be removed and stockpiled outside the mine entrance for future processing”. Assays from 37 backfill material returned seven samples over 1 gpt Au (5.74 gpt peak), ten samples over 150 gpt Ag (308 gpt Ag peak), eleven samples above 0.5% Cu (1.57% peak), 20 samples over 1.0% Pb (3.91% peak) and 26 samples over 1.0% Zn (8.19% peak).

ON MINING

  • Argonaut Gold Inc. released operating and financing results for Q4 2022, without disclosing figures on its Mexican operations. At the end of the period the company held $73.3 M in cash and cash equivalents. Its Mexican operations include the San Agustin mine in Durango and the La Colorada mine in Sonora, and the Cerro del Gallo project in Guanajuato.
  • Aura Minerals Inc. filed its audited financial statements and management discussion for the year 2022, without disclosing the figures by project. For 2023 the company expects to produce between 101 K to 116 K Oz AuEq at cash cost $685 to $788 per Oz AuEq and an AISC of $898 to 1,033 per Oz AuEq at the Aranzazu mine in Zacatecas. “Exploration is expected to focus on the geological potential of new mineralized zones, such as Cabrestante, El Cobre and Limestone Bridge with 20,000 m of drilling planned to 2023. All targets are near mine, some of which have been drilled in the past and indicated skarn mineralization but requiring follow up drilling”.
  • Endeavour Silver Corp. announced financial and operating results for year 2022. The company that operates the Guanceví mine in Durango and the Bolañitos mine in Guanajuato produced 5.96 M Oz Ag, 37,548 Oz Au (or 9.0 M Oz AgEq) at cash cost $10.65 and an AISC of $19.97 per Oz Ag. By the end of the period the company had $83.4 M in cash and $93.6 M in working capital. Development activities continue at Terronera, in Jalisco, and an initial mineral resource estimate was published for the Pitarrila project in Durango. 

ON FINANCING

  • No Relevant News.

ON RESOURCES AND DEVELOPMENT

  • Silver Tiger Metals Inc. released drilling results from its El Tigre project in Sonora. The results are from the recently discovered Sulfide zone at depth. Highlighted core length intervals comprise 57.2 m @ 0.20 gpt Au, 231 gpt Ag, 0.41% Cu, 0.7% Pb, 1.0% Zn (including 2.8 m @ 0.21 gpt Au, 1,986 gpt Ag, 4.0% Cu, 3.9% Pb, 5.6% Zn); 20.0 m @ 0.35 gpt Au, 369 gpt Ag, 0.85% Cu, 4.1% Pb, 8.1% Zn; 1.0 m @ 0.01 gpt Au, 453 gpt Ag, 0.56% Cu; 22.1 m @ 0.08 gpt Au, 222 gpt Ag, 0.21% Cu, 0.3% Pb, 0.3% Zn (including 1.2 m @ 0.24 gpt Au, 2,614 gpt Ag, 2.67% Cu, 1.8% Pb, 1.4% Zn); 4.7 m @ 0.11 gpt Au, 420 gpt Ag, 0.45% Cu, 0.3% Pb, 0.4% Zn; 37.8 m @ 0.19 gpt Au, 172 gpt Ag, 0.39% Cu, 1.8% Pb, 3.7% Zn. The sulfide zone has been traced now for 200 m, at depth in the Tertiary Nodular Fm just above the contact with a Precambrian granite.
  • Prime Mining Corp. announced assay results on the Fresnillo, Orito, Mariposa, Las Primas and Mine 20/21 areas at its Los Reyes project in Sinaloa. The results are from drilling outside of the current resource area. Highlighted true width intervals comprise 15.80 m @ 1.40 gpt Au, 18 gpt Ag; 2.90 m @ 4.70 gpt Au, 48 gpt Ag; 5.50 m @ 1.30 gpt Au, 13 gpt Ag; 34.70 m @ 4.90 gpt Au, 22 gpt Ag; 3.75 m @ 1.60 gpt Au, 14 gpt Ag.
  • Gold Resource Corp. released recent drilling results from the Don Diego mine in Oaxaca. The released data is from the Three Sisters, Marena, Soledad and Sagrario vein systems. Highlighted true width intercepts comprise 1.67 m @ 2.20 gpt Au, 874 gpt Ag, 0.65% Cu, 1.8% Pb, 3.0% Zn; 3.19 m @ 0.25 gpt Au, 41 gpt Ag, 0.6% Pb, 3.6% Zn; 7.13 m @ 1.54 gpt Au, 175 gpt Ag, 0.21% Cu, 1.1% Pb, 2.2% Zn; 5.09 m @ 0.15 gpt Au, 117 gpt Ag, 3.0% Pb, 8.8% Zn; 3.52 m @ 177 gpt Ag, 3.0% Pb, 9.1% Zn; 3.22 m @ 37 gpt Ag, 0.3% Pb, 5.8% Zn; 4.21 m @ 7.93 gpt Au, 111 gpt Ag, 1.25% Cu, 3.8% Pb, 15.2% Zn; 1.80 m @ 1.81 gpt Au, 40 gpt Ag, 1.09% Cu, 5.5% Pb, 12.3% Zn; 4.21 m @ 2.10 gpt Au, 121 gpt Ag, 0.43% Cu, 1.6% Pb, 7.2% Zn. “Our 2023 exploration objectives are to identify and define mineral resources from the Three Sisters, South Soledad and Sagrario and Marena vein systems”.
  • GR Silver Mining Ltd. announced the final batch of underground drilling results from the Plomosas mine area at its Plomosas project in Sinaloa. Highlighted true width intervals from 28 underground drill holes comprise 2.90 m @ 251 gpt Ag, 2.2%Pb, 2.4% Zn; 8.50 m @ 44 gpt Ag, 0.3% Pb, 0.4% Zn; 1.90 m @ 2.31 gpt Au, 23 gpt Ag, 1.9% Pb, 3.8% Zn; 12.20 m @ 0.70 gpt Au, 42 gpt Ag, 0.5% Pb, 0.4% Zn; 4.70 m @ 0.75 gpt Au, 277 gpt Ag, 0.2% Cu, 7.5% Pb, 2.1% Zn; 4.30 m @ 23 gpt Ag, 0.1% Cu, 1.1% Pb, 6.0% Zn; 4.70 m @ 0.54 gpt Au, 325 gpt Ag, 0.1% Cu, 3.1% Pb, 2.5% Zn; 11.30 m @ 0.20 gpt Au, 161 gpt Ag, 0.1% Cu, 1.0% Pb, 1.5% Zn; 19.70 m @ 158 gpt Ag, 0.1% Cu, 1.9% Pb, 1.8% Zn. “The drilling results continue to reveal attractive wide high-grade silver-polymetallic mineralization in unmined areas at the upper levels of the historic underground mine”.
  • Vizsla Silver Corp. reported drill results from 14 infill holes on the Copala resource area at its Panuco project in Sinaloa. Highlighted true width intervals comprise 15.00 m @ 7.20 gpt Au, 1,142 gpt Ag (including 3.07 m @ 17.72 gpt Au, 2,878 gpt Ag; 20.60 m @ 2.80 gpt Au, 643 gpt Ag, 18.00 m, @ 2.53 gpt Au, 602 gpt Ag (including 2.27 m @ 14.51 3,421 gpt Ag); 4.30 m @ 8.62 gpt Ag, 758 gpt Ag; 2.10 m @ 10.91 gpt Au, 1,920 gpt Ag.

ON DEALS AND CORPORATE ISSUES             

  • Riverside Resources Inc. announced the signing an option agreement to acquire 100% interest in the Union mine, within the Union District in Sonora. Riverside paid $170 K and can earn-in the 100% interest by making a second payment of $100 K anytime within 60 months of signing the agreement, after which a 1.25% NSR is retained the underlying owner, same that can be bought in 0.25% increments of NSR for $250 K each at any time. “. The Union Mine historically produced ~50,000 ounces of gold (“Au”) from the upper oxide zones of manto and chimney bodies according to past reports. The potential for further expansion through a focused exploration is wide open along strike and at depth for both oxide and into sulfide ore targets”.  

ON SOCIAL RESPONSIBILITY

  • No Relevant News.

On the image below: Silicified structure scarp on the foreground of a copper project in Sonora, San Francisco gold mine dumps visible on the other side of the valley. Picture by Jorge Cirett.

Mexico’s Best Drilling Intercepts, Fourth Week of February 2023

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Four companies published drilling results from their properties during the week. GoGold’s Los Ricos South is a property with prior small scale mining on structures in a low to intermediate sulfidation epithermal system in Jalisco. The company has been demonstrating with drilling for the past couple of years that mineralization is well beyond the border of the previously worked high grade structures, with mineable grades over tens of meters.

GR Silver has a large property in Sinaloa encompassing several mineralized systems. The current results are from the past producing Plomosas mine area, which is part of a strongly mineralized centre of epithermal intermediate sulfidation mineralization mined not so long ago by IMMSA.

Bear Creek’s Mercedes property in Sonora is mining veins part of a low sulfidation epithermal system with good gold grades.

The results from the San Ignacio vein system by Guanajuato Silver are from low sulfidation epithermal mineralization to be mined for processing on the the Cata Mill at the Valenciana mines complex. San Ignacio forms part of the properties package the company obtained from Great Panther not long ago.

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

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By Jorge Cirett

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

ON MEXICO ISSUES

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

ON EXPLORATION

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

ON MINING

  • No Relevant News.

ON FINANCING

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

ON RESOURCES AND DEVELOPMENT

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

ON DEALS AND CORPORATE ISSUES

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

ON SOCIAL RESPONSIBILITY

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

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

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

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By Jorge Cirett

During the 45th week of the year (November 7th to November 13th, 2022), 20 companies working in Mexico released news on their properties. One company declared commercial production, thirteen companies released Q3 2022 results and one company closed the final tranche of a private placement. Three companies presented drilling results or updated work at their advanced properties. Two companies signed a LOI on an acquisition proposal.  ON MEXICO ISSUES, no relevant news. ON EXPLORATION, no relevant news. ON MINING, SilverCrest Metals declared commercial production at Las Chispas, in Sonora. McEwen Mining, First Majestic Silver, Coeur Mining, Avino Silver & Gold Mines, Gatos Silver, Torex Gold, Fortuna Silver Mines, Pan American Silver, Golden Minerals, Endeavour Silver, Excellon Resources, Orla Mining and Americas Gold and Silver released Q3 2022 production results. ON FINANCING, Silver Viper Minerals closed an additional tranche of financing for $200 K. ON RESOURCES AND DEVELOPMENT, Guanajuato Silver Company released drill results from a new vein at El Cubo, in Guanajuato. Oroco Resource provided drill results from the South Zone at its Santo Tomás project in Sinaloa. Orla Mining updated on work at its Camino Rojo Sulphide deposit in Zacatecas aiming to evaluate its underground development options. ON DEALS AND CORPORATE ISSUES, Silver Viper Minerals and Canasil Resources signed a LOI on the proposed acquisition of the latter by Silver Viper. ON SOCIAL RESPONSIBILITY, Discovery Silver informed on awards received by its social responsibility work and achievements at the corporate and community levels.

ON MEXICO ISSUES

  • No Relevant News.

ON EXPLORATION

  • No Relevant News.

ON MINING

  • SilverCrest Metals Inc. declared commercial production on November 1, 2022 at Las Chispas mine in Sonora. During the commissioning period in September and October 62.1 K tonnes were processed at a rate of 1,019 tonnes per day (name plate design: 1,250 tpd), recovering 96.7% Au, 96.8% Ag. “Moving Las Chispas from discovery to production in less than seven years is a monumental achievement”.
  • McEwen Mining Inc. reported Q3 2022 results, with some information on its Mexican operations. A complete process plant was acquired for the Fenix project in Sinaloa, “This acquisition has made Fenix more attractive to build and could provide a new long life mine for McEwen Mining”.
  • First Majestic Silver Corp. released financial results for the third quarter 2022. During the period the company produced 2.7 M Oz Ag, 67,022 Oz Au (8.8 M Oz AgEq) at cash cost $13.34 per Oz AgEq and AISC of $17.83 per Oz AgEq. At the end of the quarter the company held cash and cash equivalents of $148.8 M and restricted cash of $101.2 M. The Table below shows the production in San Dimas (Durango), Santa Elena (Sonora) and La Encantada (Coahuila), which account for 83% of the company’s production.
  • Silver Viper Minerals Corp. closed an additional tranche of its non-brokered private placement announced in June 6 2022, for aggregate gross proceeds of $200 K (La Virginia, Sonora).

  • Coeur Mining Inc. reported third quarter 2022 financial results, including figures from its operations in Mexico. At Palmarejo, in Chihuahua, 538.7 K tonnes were milled @ 1.52 gpt Au, 110 gpt Ag, recovering 93.3% Au, 84.9% Ag to produce 24,807 Oz Au, 1.61 M Oz Ag at a cash cost of $948 per Oz Au and $12.67 per Oz Ag. Approximately 38% of Palmarejo’s gold sales were sold under its gold stream agreement at a price of $800 per Oz Au. “Full-year 2022 production is expected to be 100,000 – 110,000 ounces of gold and 6.0 – 7.0 million ounces of silver”.
  • Avino Silver & Gold Mines Ltd. released financial results for the third quarter 2022. At the Avino mine in Durango, 162.2 K tonnes were milled to produce 285.4 K Oz Ag, 1,202 Oz Au, 2.1 M Lb Cu, at cash cost $10.29 per Oz AgEq and an AISC of $17.32 per Oz Ag. The company has budgeted 15,000 m of drilling in 2022, focusing on the area at depth below the current Elena Tolosa mining area.
  • Gatos Silver Inc. reported operating financial results for Q3 2022. At Cerro Los Gatos mine, in Chihuahua, 263.3 K tonnes were milled @ 356 gpt Ag, 0.34 gpt Au, 2.38% Pb, 4.70% Zn, containing 2.70 M Oz Ag, 1,400 Oz Au, 12.2 M Lb Pb, 17.8 M Lb Zn and recoveries of 89.6% Ag, 48.9% Au, 88.5% Pb, 65.4% Zn. By the period’s end, the company had a cash balance of $15 M and debt outstanding of $13 M.
  • Torex Gold Resources Inc. reported financial and operational results for Q3 2022. At El Limón-Guajes, in Guerrero, 122,208 Oz Au were produced at cash cost $760 and an AISC of $1,059 per Oz Au. “Cash flow from operations totalled $102.4 million and $91.3 million prior to changes in non-cash operating working capital. Cash flow from operations includes $19.2 million of income taxes paid”. Expenditures at the adjacent Media Luna project totaled $32.5 M in the quarter, with a remaining project spend of $812.4 M. The needed Media Luna environmental permit (MIA) was approved by SEMARNAT.
  • Fortuna Silver Mines Inc. reported its financial and operating results for the third quarter of 2022, including figures from its Mexican operations. At the San José mine in Oaxaca, 267.2 K tonnes were milled at an average rate of 3,071 tonnes per day (tpd), grading 196 gpt Ag, 1.16 gpt Au, recovering 92% Ag, 91% Au to produce 1.54 M OZ Ag, 9,091 Oz Au at cash cost $9.70 per Oz AgEq and an AISC of $14.23. The net cash was affected by the “$12.6 million payment including taxes for the settlement of the disputed royalty claim with the Mexican Geological Survey”.
  • Pan American Silver Corp. reported results for the third quarter 2022, without expanding on figures by region.
  • Golden Minerals Co. provided financial results for Q3 2022. The Rodeo mine in Durango produced 2,972 Oz Au, 11.9 K Oz Ag with cash cost of $1,391 per Oz AuEq. At Velardeña, in Durango, evaluation of modified mine plans, including ore sorting technology.  At Yoquivo, in Chihuahua, a 5,693 m drill program in 24 holes was completed and is currently conducting a 3,000 m drill program, planning on the completion of a maiden resource estimate for Q1 2023. Golden ended the quarter with a cash balance of $6.5 M.
  • Endeavour Silver Corp. announced financial and operating results for Q3 2022. The company has the Guanaceví mine in Durango and the Bolañitos mine in Guanajuato. Consolidated production (no details provided) was 1.46 M Oz Ag, 9,194 Oz Au (2.2M Oz AgEq) at cash cost $10.32 per Oz Ag, and an AISC of $20.27 per Oz Ag. The company has a cash position of $69.2 M and $101.6 M in working capital. Work at the Terronera project in Jalisco includes “detailed engineering, critical contracts, procurement of long-lead items and road and camp construction…. Budgeted development expenditures for 2022 are estimated to be $41.0 million”. Also, during the period was completed the acquisition of the La Pitarrilla project in Durango and the sale of El Compas mine in Zacatecas.
  • Excellon Resources Inc. reported financial results for the Q3 2022. At Platosa, in Durango, 23.8 K tonnes were mined, 22.7 K tonnes milled @ 442 gpt Ag, 3.69% Pb, 3.14% Zn, recovering 92.5% Ag, 76.9% Pb, 78.9% Zn, to produce 298.1 K Oz Ag, 1.2 M Lb Pb, 1.24 M Lb Zn (459.8 K Oz AgEq), at cash cost $9.78 per Oz AgEq and an AISC of $14.31 per Oz AgEq. “Mine activity in Q3 2022 focused on remnant development and extraction, pillar recovery and minimal mining of fresh mineral. Wind down activities continued in Q3 to minimize the work associated with care and maintenance required in Q4 2022”.
  • Orla Mining Ltd. announced its results for the third quarter 2022. During the period the Camino Rojo Oxide project produced 28,876 Oz Au at cash cost $452 and all-in sustaining costs of $594 per Oz Au. The plant’s throughput averaged 19,200 tpd, or 107% of nameplate capacity. By the end of the period the company held $89.1 M in cash and a net debt of $77.5 M.
  • Americas Gold and Silver Corp. reported financial and operational results, including figures from its Mexican operations. At Cosalá, in Sinaloa, 186 K Oz Ag, 9.4 M Lb Zn, 3.8 M Pb were produced. “Cash costs per silver ounce and all‐in sustaining costs per silver ounce were negative $4.43 and positive $4.35, respectively”.

ON FINANCING

  • Silver Viper Minerals Corp. closed an additional tranche of its non-brokered private placement announced in June 6 2022, for aggregate gross proceeds of $200 K (La Virginia, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Guanajuato Silver Company Ltd. provided drill results that confirm a new transverse vein at El Cubo mine in Guanajuato. Highlighted true width intervals comprise 0.85 m @ 3.54 gpt Au, 398 gpt Ag; 1.29 m @ 0.79 gpt Au, 102 gpt Ag; 0.90 m @ 0.82 gpt Au, 112 gpt Ag; 0.92 m @2.15 gpt Au, 278 gpt Ag; 1.28 m @1.70 gpt Au, 205 gpt Ag. “The San Luis vein runs perpendicular to the primary regional north-west Villalpando and Dolores mineralized vein structures, and like other transverse veins at El Cubo, the San Luis vein is anticipated to often carry proportionally higher gold content”.
  • Oroco Resource Corp. released assay results for three holes testing the South zone at its Santo Tomás project in Sinaloa. The total strike length of mineralization extends now for 3.2 Km, with 0.5 km more open for extension to the south. Highlighted core length intervals comprise 271 m @ 0.33% Cu, 0.029 gpt Au, 2.6 gpt Ag; 34 m @ 0.26% Cu, 0.9 gpt Ag; 140 m @ 0.23% Cu, 1.8 gpt Ag; 277.4 m @ 0.36% Cu, 0.026 gpt Au, 2.6 gpt Ag. Twelve holes have been completed to date on the South zone and 41 holes (27,004 m) in the North zone.
  • Orla Mining Ltd. updated on work at its Camino Rojo Sulphide project in Zacatecas (below its Camino Rojo Oxide project currently in production). Previous operators envisioned a large open pit mining scenario for disseminated low-grade sulfides, with high capital costs for a large processing facilities and extensive material handling. Orla has been assessing the existence of higher-grade smaller ore shoots with the potential to sustain a more targeted underground development. Drilling has intercepted mineralization grading more than 2 gpt Au over more than 30 m in the five holes with results so far.

ON DEALS AND CORPORATE ISSUES

  • Silver Viper Minerals Corp. and Canasil Resources Inc. entered into a non-binding letter of intent in November 6, 2022, with respect of the proposed acquisition by Silver Viper of all outstanding shares of Canasil, in exchange for common shares of Silver Viper. Canasil shareholders will receive one (1) common share of Silver Viper by for every four (4) Canasil shares held. At the closing of the proposed transaction Canasil will have the right to nominate one member of the board of directors of Silver Viper. Furthermore, Silver Viper will be required to complete a financing for at least C$1 M and Canasil a financing for at least C$260 K. Silver Viper holds La Virginia project in Sonora, whereas Canasil owns the Sandra, Nora, Vizcaino, Salamandra and Colibri projects in Durango, and the La Esperanza project in Zacatecas.

ON SOCIAL RESPONSIBILITY

  • Discovery Silver Corp. received its official ESR Distinction, issued by the Mexican Center for Philanthropy “to organizations that have demonstrated they operate in a socially and environmentally responsible manner”. The company also received the Great Place to Work Certification, the Clean Industry Certification emitted by PROFEPA (Federal Attorney’s Office for Environmental Protection) and the Safe Industry Certification Level 1 issued by the Mexican Government’s Secretary of Labor.

On the image below Quartz veinlet stockwork in limestone on a project in the Sonoran Desert. Picture by Jorge Cirett.

Mexico’s Best Drilling Intercepts, Second Week of September 2022

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On what proved to be a busy week for press releases including drilling results from companies working in Mexico, the numbers coming from several projects are good. Reyna Gold’s 59 m intercept of 1.45 gpt Au is the best to come from orogenic style gold mineralization in some time. But the real takeaway from this week’s announcements is that the rest of good numbers (really good in the case of Kootenay’s Columba project) for silver, lead and zinc, is that all these intercepts come from mostly tightly structurally controlled low to intermediate sulfidation epithermal systems.

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

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By Jorge Cirett

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

ON MEXICO ISSUES

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

ON EXPLORATION

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

ON MINING

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

ON FINANCING

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

ON RESOURCES AND DEVELOPMENT

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

ON DEALS AND CORPORATE ISSUES

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

ON SOCIAL RESPONSIBILITY

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

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

The Mining and Exploration News in Mexico: Highlights on the Fourth Week of May, 2022

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By Jorge Cirett

During the 21st week of the year (May 23rd to May 29th, 2022), at least 25 press releases were announced by companies working in Mexico. To note, six companies posted exploration advances on their properties, one released first quarter 2022 reports, one announced the commissioning commencement on its project, one updated on a merger, one on the significant ownership by one investor, one on the compliance to issue by-weekly reports until its management cease trade order is lifted, three released drilling results from their advanced projects and one commissioned a company to prepare a resource estimate for its property.  ON MEXICO ISSUES, SEMARNAT, the Mexican environmental agency, voiced its support for anti-mining organizations in Morelos. A miner’s Union has taken legal steps to get back to previous profit-sharing schemes by mining companies. The president of Mexico expressed the likelihood of its government going to court to stop a company from mining limestone in Quintana Roo. ON EXPLORATION, in Sonora, Benjamin Hill Mining released results from drilling at its Sonora Gold property; Ranchero Gold updated on exploration at Santa Daniela; Silver Spruce Resources is preparing ground for drilling at Diamante; Tocavan Ventures released drill results from Pilar. In Nayarit, Sierra Madre Gold and Silver released results from drilling at La Tigra. In Veracruz, Azucar Minerals completed the first hole near the center of a large target at El Cobre. ON MINING, SilverCrest Metals announced the completion of construction of the processing plant at Las Chispas, in Sonora. Magna Gold presented its Q1 2022 operating and financial report. ON FINANCING, Sailfish Royalty received a lead order commitment in its path to create a silver exploration company starting with the Gavilanes project in Durango.  Eric Sprott owns 26.2% of outstanding shares of Discovery Silver. Gatos Silver is providing a by-weekly default status report.  ON RESOURCES AND DEVELOPMENT, Avino Silver & Gold Mines released drill results from the Oxide Tailings project at Avino, Durango. GR Silver released results from underground drilling at Plomosas, in Sinaloa. Sonoro Gold reported results from drilling at Cerro Caliche, in Sonora. Barksdale Resources engaged a company for the elaboration of the resource estimate at San Javier, in Sonora. ON DEALS AND CORPORATE ISSUES, Sierra Madre Gold and Silver signed an agreement with First Majestic to acquire La Guitarra, in Estado de Mexico. Bear Creek Mining has been placed on the default list by the British Columbia Securities Commission, on concerns regarding the credentials of consultants that signed a technical report on the Mercedes mine, in Sonora. Discovery Silver updated on activities at Cordero, in Chihuahua.  ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • SEMARNAT, the Mexican environmental agency, pointed that it backs those against mining projects in Morelos. This statement was done regarding Alamos Gold’s Esperanza project near Temixco, in the process of acquisition by Zacatecas Silver Corp.. The agency stressed that the Mexican government maintains its commitment to not authorize any new open pit development in the country, based on ideological ideas (No mention was done whatsoever about the project complying or not with the law).
  • The Union “Sindicato Nacional Minero Metalúrgico FRENTE” informed on legal procedures taken by the organization to fight for the 10% of profits that previously were distributed among the workforce of mining companies in Mexico, same that were recently capped at three months of salary per worker.
  • The president of Mexico, Andrés M. López Obrador, stated that Mexico will take Vulcan Materials, a company mining limestone in Quintana Roo, to court if necessary. The company has stated in the past that it has all the needed permits for its operations.

ON EXPLORATION

  • Benjamin Hill Mining Corp. released results from diamond drilling at its Sonora Gold project in Sonora. A total of 34 holes were completed covering 5,800 m on seven targets in the 6,400 hectares property. Assays have been received for the first 20 holes. Highlighted intervals from the Sonora Copper area comprise 28.2 m @ 0.42% Cu (interval that includes 16 m @ 0.3 gpt Au; 3.5 m @ 26 gpt Ag; 1.44 m @ 2.99% Cu, 0.664 gpt Au, 103 gpt Ag) and 9.21 m @ 0.92% Cu (including 5.36 m @ 1.7% Cu, 1.95 gpt Au, 44 gpt Ag) in one hole; and 20.55 m @ 0.55% Cu (including 2 m @ 1.05% Cu, 0.379 gpt Au, 18 gpt Ag; 3.96 m @ 1.12%) in a second hole. Highlighted intervals from other areas comprise 1.2 m @ 0.43% Cu, 1.52 gpt Au; 0.90 m @ 0.14% Cu, 1.73 gpt Au; 0.60 m @ >10% Cu, 2.11 gpt Au, 52 gpt Ag).
  • Sierra Madre Gold and Silver Ltd. announced results from the three first holes of its drilling program at La Tigra project, Nayarit. Highlighted core length intervals (interpreted as 90% of the core interval) comprise 9.0 m @ 0.46 gpt Au, 9 gpt Ag; 6.60 m @ 0.49 gpt Au, 6 gpt Ag; 5.10 m @ 2.21 gpt Au, 24 gpt Ag; 32.0 m @ 1.00 gpt Au, 4 gpt Ag (including 4.0 m @ 3.03 gpt Au and 4.45 m @ 2.72 gpt Au, 7 gpt Ag). An application was filed for a new 1,653 ha claim to the west of La Tigra, named Sabra.
  • Ranchero Gold Corp. provided an update on exploration at its Santa Daniela concessions in Sonora. Machine-learning technology has been applied in the 2,220 hectares land package to identify 47 exploration targets, of which nine are high priority. Follow-up field visits are ongoing to Rincon, San Francisco and Yaqui Sur.
  • Silver Spruce Resources Inc. is preparing access trails and pads for its incoming 2,000 m reverse circulation drilling campaign at its 1,057 hectares Diamante project in Sonora. The drilling company it to mobilize to site next week.
  • Azucar Minerals Ltd. announced the completion of the first hole (1,280 m of depth) in a large lithocap target at El Cobre, in Veracurz. This area has been targeted for drilling based on a mineral vectoring study utilizing chlorite and epidote that indicates a fertile medium to large sized porphyry system, a coinciding deep IP geophysical anomaly, surface pyrophyllite, spectral mineral mapping and high crystallinity illite over the entire target. Drill hole results are pending. “The closest hole to this deep core IP anomaly, which did not test the anomaly, intersected intense quartz pyrite sericite (QSP) phyllic alteration which provides further support to this new target representing a possible porphyry centre”.
  • Tocvan Ventures Corp. released diamond drill results from its Pilar property in Sonora. An infill hole in the Main zone intercepted a core-length interval of 108.6 m @ 0.8 gpt Au, 3 gpt Ag (including 31.9 m @ 2.4 gpt Au, 2 gpt Ag and 9.4 m @ 7.6 gpt Au, 5 gpt Ag). As part of the Phase III program, nine drill holes totaling 1,562 m have been completed.

ON MINING

  • SilverCrest Metals Inc. announced that Ausenco Engineering Canada Inc. has completed the construction of the processing plant at Las Chispas in Sonora. The processing plant commissioning is now underway, and expected to reach commercial production in Q4, 2022.
  • Magna Gold Corp. released operating and financial results for the first quarter of 2022. At San Francisco, in Sonora, 7.3 M tonnes were mined with a strip ratio of 6.7:1, processing 1.4  M tonnes to produce 11,874 Oz Au at cash cost $1,675 per Oz Au and AISC at $2,467 per Oz Au. The San Francisco deposit has measured and indicated resources of 99.7 M tonnes @ 0.446 gpt Au, containing 1,430 K OZ Au and inferred resources of 11.4 M tonnes @ 0.446 gpt Au, containing 171 K Oz Au.

ON FINANCING

  • Sailfish Royalty Corp. has received a lead order commitment from Barnwell Investments LLC. in connection to the private placement contemplated as part of a combination transaction with Swordfish Silver. The proposed transaction includes a private placement of Swordfish shares for US$5 M. The goal of the proposed transaction is to create a silver focused exploration and development company, resulting in the transfer of Sailfish’s Gavilanes property in Durango.
  • Ontario Ltd., a company Eric Sprott owns, announced the exercise of warrants on Discovery Silver Corp. for an aggregate consideration of $7 M. As a result of the warrant exercise Mr. Sprott owns 26.2% of the outstanding Shares on a non-diluted basis and approximately 27.3% on a partially diluted basis.
  • Gatos Silver Inc. is providing a by-weekly default status report in accordance with National Policy 12-203 – Management Cease Trade Orders. “The Company believes that it will be able to file its annual report on Form 10-K for the year ended December 31, 2021, and its quarterly report on Form 10-Q for the quarter ended March 31, 2022 in the second half of 2022. The Company is also evaluating the material weaknesses in its internal controls over financial reporting related to the mineral reserve reporting errors”.

ON RESOURCES AND DEVELOPMENT

  • Avino Silver & Gold Mines Ltd. released results from 17 short holes drilled on its Oxide Tailings project at Avino, in Durango. “The 2022 drill program included 17 drill holes for a total of 209 metres of drilling”. The average of 90 m drilled on the sulphide zone of the tailings returned 0.34 gpt Au, 30 gpt Ag, whereas those from the oxide zone averaged 0.49 gpt Au, 41 gpt Ag on a total of 90 m.
  • GR Silver Mining Ltd. announced results from underground infill drilling at the Plomosas Project in Sinaloa. Highlighted apparent width intervals comprise 2.9 m @ 190 gpt Ag, 0.1% Pb, 0.1% Zn; 14.0 m @ 146 gpt Ag; 6.5 m @ 1,458 gpt Ag, 0.2% Pb, 0.2% Zn.
  • Sonoro Gold Corp. reported results from 10 holes completed at its Cerro Caliche project in Sonora. The highlighted core length results from the El Colorado and Buena Suerte zones comprise 21.34 m @ 0.557 gpt Au (including 3.04 m @ 1.52 gpt Au); 1.52 m @ 2.19 gpt Au; 7.62 m @ 0.72 gpt Au; 10.67 m @ 1.183 gpt Au; 4.57 m @ 1.09 gpt Au; 1.52 m @ 9.57 gpt Au; 28.95 m @ 1.021 gpt Au (including 3.05 m @ 2.706 gpt Au). Results from further seven drill holes at Las Abejas are pending.
  • Barksdale Resources Corp. engaged Independent Mining Consultants Inc. (IMC) to prepare a resource estimate and NI 43-101 Technical Report for the Cerro Verde copper zone on the San Javier project in Sonora. Approximately 30,000 m of drilling data will be utilized in the process to create the report. The resource estimate is expected to be delivered to Barksdale within the next 30 days.

ON DEALS AND CORPORATE ISSUES

  • Sierra Madre Gold and Silver Ltd. signed an arm’s length definitive agreement with First Majestic Silver Corp. to acquire the 39,714 hectare La Guitarra property in Estado de Mexico. La Guitarra is a past-producing underground mine with an on-site process facility that operated until 2018. Historical measured and indicated resources in the property amount to 7.45 M Oz AgEq and inferred resources to 10 M Oz AgEq. Sierra Madre will issue to First Majestic 69.06 M of its common shares, for an aggregate value of $35 M. Upon completion of the transaction First Majestic will become the largest shareholder of Sierra Madre.
  • Bear Creek Mining Corp. has been placed on the default list by the British Columbia Securities Commission. This as a result of the BCSC’s concerns regarding the credentials of certain independent third-party consultants to act as qualified persons under National Instrument 43-101 in respect of certain chapters of the Aprill 22 technical report on the Mercede mine, in Sonora. “Bear Creek estimates that the Amended Mercedes Report will be filed within approximately 30 days”.
  • Discovery Silver Corp.released its financial results for the first quarter 2022 and an update on activities. The Pre-Feasibility Study (PFS) work for the Cordero project in Chihuahua is to be delivered on the fourth quarter 2022, the metallurgical test work on sulfides is 60% complete, the reserve definition drilling is now complete, and the first of three open pit geotechnical drill holes is underway. More than 30,000 m of drilling are planned this year on resource expansion targets and the first ever drilling of five targets within 10 km of Cordero. Cash and cash equivalents by the end of the period was at $61.2 M

ON SOCIAL RESPONSIBILITY

  • No Relevant News.

On the image below: Sampling of quartz-barite vein in the Sonora Desert. Picture by Jorge Cirett.