Mining operations

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

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By Jorge Cirett

During the 19th week of the year (May 10th to May 16th, 2021), at least 38 press releases were announced by companies working in Mexico. To note, nine companies posted exploration advances on their properties, nine presented mining related news, two posted on financing or share options, eight more on project development or resource definition and three posted on corporate issues. ON MEXICO ISSUES, Camimex reported investment of US$88 M on social development by mining companies. SEGOB has been involved in the resolution of six mining conflicts. The commodity prices have made mining companies values swing in the Mexican Exchange. ON EXPLORATION, in Baja California, Comet Resources received the environmental permit for drilling at Santa Teresa. In Sonora, Tocvan  Ventures informed on exploration at Pilar; Tarachi Gold reported visible gold in RC drilling chips at Tarachi. In Chihuahua, Kootenay Silver released drilling results from Columba; Mammoth Resources is drill targeting using 3D modelling of geophysics at Tenoriba. In Sinaloa, Brigadier Gold informed on exploration at Picachos; Vizsla Silver released drilling results on the Napoleon trend of the Panuco project. In Nayarit, Sierra Madre Gold and Silver has begun drilling at Tepic. ON MINING, Fortuna Silver, Endeavour Silver, Torex Resources, Santacruz Silver , Pan American Silver, Avino Silver, SilverCrest Metals, Starcore International and GoGold Resources released Q1 2021 production results. ON FINANCING, Capitan Mining has 8 M shares bought by Mr. Michael Gentile; Magna Gold had a non-brokered private placement of CA$10 M secured convertible debentures. ON RESOURCES AND DEVELOPMENT, Ridgestone announced a new mineral resource estimate for Guadalupe y Calvo. Discovery Silver is planning a PEA for its Cordero property. GR Silver Mining reported drilling results from Plomosas. Impact Silver is targeting using 3D modelling of geophysical surveys at Capire. Grupo Mexico unveiled plans to invest several billion dollars on projects in Mexico. Orla Mining updated on construction of the Camino Rojo Oxide project. Excellon Resources presented an updated mineral resource estimate for Platosa. Gatos Silver released results from infill and extension drilling.  ON DEALS AND CORPORATE ISSUES, Telson Mining is changing name to Altaley Mining Corp.. Coeur Mining is to acquire 17.8% of Victoria Gold. Barksdale Resources is gaining 100% of the Sunnyside project in Arizona. ON SOCIAL RESPONSIBILITY, Endeavour Silver and Hecla Mining released their sustainability 2020 report. Pan American Silver, Equinox Gold and Torex Gold presented plans to reduce their carbon footprint. Newmont Peñasquito and Peña Colorada informed on their actions to support community development.

ON MEXICO ISSUES

  • Camimex (Cámara Minera de México) informed that the companies part of the organization invested on social development $1,756 M pesos (approximately US$88 M at current exchange rates). Those funds are in addition to the $3,496 M pesos (US$197 M) provided to the Mining Fund (previously intended for bettering mining communities, now siphoned to the black hole the federal government is). The Centro Social para la Filantropía (CEMEFI) granted the Empresa Socialmente Responsable Award to 29 companies affiliated to Camimex.
  • SEGOB (Secretaría de Gobernación) has been part of the resolution of six mining conflicts in Sinaloa, Baja California, Guerrero, Zacatecas and Queretaro, informed Olga Sánchez Cordero, head of the secretariat. The pending case is the one that involves Americas Gold and Silver’s San Rafael mine in Sinaloa, which was paralyzed by a Union dispute over a year ago.
  • Several business leaders expressed their optimism on future silver prices, which can be very good for Mexico, as the number one producer of the metal.
  • Grupo Mexico, the biggest mining conglomerate in Mexico saw its shares rise 8.7% in one day, translating to a 67,885 M pesos gain in value. This as a result of the strong increase in the copper price in 2021.
  • Mining companies in the BMV have had a mixed results 2021. Grupo Mexico has seen its shares increase 30.5%, Minera Autlán 22.3% and Minera Frisco 6.9%, while Industrias Peñoles and Fresnillo have had reductions of 15.3% and 20.05% respectively.

ON EXPLORATION

  • Comet Resources Ltd. Informed the drilling permit for its Santa Teresa project in Baja California has been received. The program consists of 2,000 m of diamond drilling to test extensions of zones of known gold mineralization along strike and at depth, as well of other identified zones of interest.
  • Sierra Madre Gold and Silver Ltd. Has begun drilling at its 2,600 hectare Tepic project in Nayarit. The company intends to drill 21 reverse circulation (RC) holes, as poor recoveries plagued previous diamond drill campaigns by previous operators.
  • Colibri Resources Corp. informed of exploration progress by its partner Tocvan Ventures Corp. on the Pilar project in Sonora. Tocvan is in year two of a five-year option agreement to earn an initial 51% ownership of the Pilar Project. To date, eleven RC drill holes have been completed for a total of 1,811 m, focusing on extensions of the Main zone. Samples for the first five holes have been sent for assaying, and the rest will be sent soon.
  • Sierra Madre Gold and Silver Ltd. updated on exploration activities at the Tepic property in Nayarit. “Work for the last 6 months has focused on geologic mapping and reconnaissance sampling with approximately 50% of the project covered at a 1:5000 scale level of detail or better. This has resulted in the recognition of more than 10 kilometres of hydrothermally altered and mineralized structures..”. Reconnaissance sampling has returned up to 648 gpt Ag, and 7.43 gpt Au. A 2,700 m trenching has been initiated to explore the multiple structures present in the area.
  • Brigadier Gold Ltd. informed on exploration work at its Picachos project in Sinaloa. The recent drilling intercepted up to 7 m @ 7.45 gpt Au, 51 gpt Ag in the San Agustín vein; 0.8 m @ 12.62 gpt Au, 78 gpt Ag, 4.5% Cu in the San Antonio vein and 1 m @ 10.65 gpt Au with 8 m @ 2.29 gpt Au, with assays still pending for 518 m of drilling. A trench across the El Placer trend returned 65 m 0.5 gpt Au, and a porphyry copper target was localized, with strong sericitic alteration and values of molybdenum above 240 ppm in almost all the 350 m trench, peaking at 2,200 ppm (0.22%) Mo over 6 m.
  • Tarachi Gold Corp. reported visible gold in chips from the recently finished reverse circulation (RC) program at its Tarachi property in Sonora. The visible gold was observed in a 10 m interval of one drill hole cuttings, approximately on a 10 m interval. The RC drill holes were sunk south of La Dura mine on the Jabali concession.
  • Kootenay Silver Inc. released drill results for the first four holes of 2021 at its Copalito project in Sinaloa. Highlighted core length intervals comprise 5.75 m @ 0.049 gpt Au, 75 gpt Ag, 0.3% Pb+Zn (including (1.0 m @ 0.09 gpt Au, 303 gpt Ag, 0.6% Pb+Zn); 8.61 m @ 0.456 gpt Au, 12 gpt Ag, 0.4% Pb+Zn (including 2 m @ 1.10 gpt Au, 13 gpt Ag, 0.3% Pb+Zn); 21 m @ 0.187 gpt Au, 178 gpt Ag, 0.8% Pb+Zn (including 1.18 m @ 0.575 gpt Au, 1,965 gpt Ag, 6.3% Pb+Zn.
  • Vizsla Silver Corp. released results from 23 holes at the Napoleon prospect in the Panuco project in Sinaloa. The released holes extend mineralization by 230 m along strike and 65 m to depth. Highlighted true width intercepts comprise 3.45 m @ 1,275 gpt Ag, 25.97 gpt Au, 0.7% Pb, 3.0% Zn (including 0.66 m @ 5,410 gpt Ag, 88.2 gpt Au, 1.0% Pb, 1.9% Zn); 10.30 m @ 356 gpt Ag, 3.13 gpt Au, 0.8% Pb, 1.2% Zn; 4.22 m @ 392 gpt Ag, 3.89 gpt Au, 0.3% Pb, 1.2% Zn; 1.27 m @ 6.47 gpt Au, 158 gpt Ag, 0.5% Pb, 2.2% Zn; 4.22 m @ 3.89 gpt Au, 392 gpt Ag, 0.3% Pb, 1.2% Zn; 1.09 m @ 2.09 gpt Au, 85 gpt Ag, 0.1% Pb, 0.4% Zn; 6.15 m @ 5.14 gpt Au, 87 gpt Ag, 0.4% Pb, 1.4% Zn; 3.93 m @ 1.93 gpt Au, 41 gpt Ag, 0.8% Pb, 3.1% Zn; 1.61 m @ 2.16 gpt Au, 354 gpt Ag, 0.4% Pb, 2.35% Zn.
  • Mammoth Resources Corp. informed on drill targeting activities at its Tenoriba project in Chihuahua. A 3D modelling exercise was conducted including its infill induced polarization/magnetometric (IP/Mag) geophysical survey recently completed. Four target areas were identified as TA-1, TA-2, TA-3 and TA-4, each showing some of the next attributes: silicified volcanic breccia rocks, High IP-resistivity features, artisanal mine workings, previous ore-grade intercepts in drilling and good geochemistry in rock and soil samples.

ON MINING

  • Fortuna Silver Mines Inc. reported first quarter 2021 financial results. At the San José mine, in Oaxaca, 259.8 K tonnes were milled at an average rate of 3,040 tonnes per day (tpd), grading 217 gpt Ag, 1.36 gpt Au, recovering 91% Ag, 91% Au, to produce 1.6 M Oz Ag, 10,301 Oz Au at a production cash cost of $8.40 per Oz AgEq and an AISC of $13.40 per Oz AgEq. To note, realized silver and gold prices were $26.17 and $1,783 per ounce in Q1 2021, against $16.09 and $1,571 respectively in Q1 2020.
  • Endeavour Silver Corp. presented financial results for the first quarter 2021. During the period 1.4 M Oz Ag, 10,894 Oz Au were produced at cash cost of $7.86 per Oz Ag and an AISC of $19.94 per Oz Ag, generating a cash flow of $5.2 M. Cash at the end of the period was $86 M, with a working capital of $113.1 M and a debt of $8.7 M.
  • Torex Gold Resources Inc. reported financial and operational results for the first quarter 2021. During the period 129,509 Oz Au were produced at its El Limon Guajes mine in Guerrero, at total cash cost of $580 per Oz Au, and an AISC of $854 per Oz Au. The adjusted EBITDA was $144.9 M, with $9.3 M of free cash flow. The company is now debt free, after repaying $40 M. By the end of the period Torex had cash of $167.3 M including $172.0 M in cash and $4.7 M of lease obligations.
  • Santacruz Silver Mining Ltd. reported production on Q1 2021 of 707 K Oz AgEq from its Zimapan and Rosario mines, in Hidalgo and San Luis Potosi respectively. At Zimapan, 156.4 K tonnes were milled @ 85 gpt Ag, 0.63% Pb, 1.99% Zn, 0.31% Cu (182 gpt Ag), recovering 69% Ag to produce 294.1 K Oz Ag, 892 tonnes Pb, 2,067 tonnes Zn, 354 tonnes Cu. At Rosario 19.8 K tonnes were processed @ 61 gpt Ag, 0.19 gpt Au, 0.34% Pb, 1.51% Zn (72 gpt AgEq), recovering 80.3% Zn to produce 31.3 K Oz Ag, 59.4 Oz Au, 78 tonnes lead, 73 tonnes Zn.
  • Pan American Silver Corp. presented results for Q1 2021, including figures from its Mexican operations. Of a total 4.6 M Oz Ag, 137.6 K Oz Au produced in the period, 1.06 M Oz Ag, 0.5 K Oz Au were produced at La Colorada (Zacatecas) and 0.63 M Oz Ag, 37 K Oz Au at Dolores (Chihuahua). Cash cost per Oz Ag at La Colorada was $15.62 and AISC $42.44, whereas at Dolores cash cost per Oz Au was $718 with no AISC reported.
  • Avino Silver  Gold Mines Ltd. released consolidated financial results for the first quarter of 2021. During the period 164 K tonnes were milled to produce 266.7 K Oz Ag, 1,531 Oz Au, 1.8 M Lb Cu (684 K Oz AgEq). “During Q1 2021, no production mining activities took place due to the work stoppage at the Avino Mine. Transitional efforts are underway to restart production and mining operations”. By the end of the period tha company had $27 M in cash and a working capital of $31.2 M.
  • SilverCrest Metals Inc. reported unaudited financial results of Q1 2021. During the period the company released results form a feasibility study (FS) for Las Chispas project in Sonora, with an estimated initial capital cost of $137.7 M. By the end of March the construction advance was 14.3%, with an aggregate cost of $27.7 M. Also, 33,382 m were completed of in-fill and expansion drilling and 2.0 Km of underground decline and development including in-vein drifting. SilverCrest also completed 18,237 m of drilling at Picacho (Sonora), where it has drilled 24,059 m since its acquisition in 2020. At the end of the period the company had $226 M in cash and cash equivalents.
  • Starcore International Mines Ltd. announced production results for the fourth quarter, ended April 30, 2021, at its San Martin mine in Queretaro. During the period 54.4 K tonnes were milled @ 1.52 gpt Au, 24.6 gpt Ag, recovering 87.3% and 57.5% Ag, to recover 2,603 Oz AuEq.
  • GoGold Resources Inc. released its financial results for the first quarter 2021. The company stacked 417.5 K tonnes to sell 541.6 K Oz AgEq at cash cost $12.81 and AISC $16.27 at its Parral tailing property in Chihuahua.

ON FINANCING

  • Capitan Mining Inc. had 8 M shares bought by Mr. Michael Gentile, same that coupled with 1.16 M previously held shares amount to 17.02% of Capitan Mining issued shares. Mr. Gentile filed an early warning report. (Capitan, Durango).
  • Magna Gold Corp. announced a non-brokered private placement of CAS$10 M secured convertible debentures with Delbrook Capital Advisors Inc.. The debentures mature in 24 month’s from issuance and bear interest at a rate of 6.5% per year. “The principal amount of the Debentures is convertible, at the election of Delbrook, into common shares of the Company at a conversion price of CAD$1.25 per common share, representing a 35.5% premium to the 10-day VWAP”. Magna plans exploration activities at its Margarita project (Chihuahua), Mercedes (Sonora), San Judas (Sonora), Veta Tierra (Sonora) and Los Muertos (Sonora).

ON RESOURCES AND DEVELOPMENT

  • Ridgestone Mining Inc. announced a mineral resource estimate for its Guadalupe y Calvo project in Chihuahua. The estimate was done on two main structures, the Rosario and Nankin veins, combining pit constrained and underground resources. Indicated resources contain 216.8 K Oz Au, 10.4 M Oz Ag and inferred resources amount to 335.6 K Oz Au, 9.3 M Oz Ag, as displayed on the table below.
  • Discovery Silver Corp. is planning a preliminary economic study (PEA) scheduled to be completed in 4Q 2021 on its Cordero property in Chihuahua. The company recently finished a 75,000 m drilling campaign on which a new resource estimate is to be based and delivered in the 3Q 2021. Phase two of drilling has four rigs operating on Cordero, aiming to upgrade inferred resources to the indicated category, resource expansion of bulk-tonnage mineralization and testing the high-grade vein systems that cut through the deposit. Other teams are working in the metallurgy, mining strategies, geotechnical issues, hydrogeology, environment and all the needed studies to prepare the PEA, which preliminarily aims to an initial 10,000 to 20,000 tonnes per day (tpd) of mill throughput and expansion to 20,000 to 40,000 tpd.
  • GR Silver Mining Ltd. Reported near surface drill results of narrow high-grade mineralization at its Plomosas property in Sinaloa. Highlighted true width intervals comprise 4.0 m @ 80 gpt Ag, 0.19 gpt Au, 0.5% Pb, 0.6% Zn; 8.5 m @ 46 gpt Ag, 0.16 gpt Au, 1.3% Pb, 1.2% Zn; 0.5 m @ 13.05 gpt Au, 0.5% Pb, 1.0% Zn; 14.8 m @ 0.21 gpt Au, 0.6% Pb, 1.6% Zn; 1.7 m @ 8 gpt Ag, 9.67 gpt Au; 9.0 m @ 141 gpt Ag, 0.31 gpt Au, 0.7% Zn, 0.7% Cu; 0.9 m @ 1,000 gpt Ag; 6.3 m @ 80 gpt Ag, 0.01 gpt Au, 0.1% Pb, 13.0% Zn; 5.0 m @ 234 gpt Ag, 0.01 gpt Au, 0.2% Pb, 0.3% Zn; 1.3 m @ 530 gpt Ag, 0.01 gpt Au, 0.1% Pb, 0.1% Zn; 2.5 m @ 173 gpt Ag, 0.01 gpt Au, 2.3% Pb, 1.9% Zn; 8.7 m @ 57 gpt Ag, 0.01 gpt Au, 4.1% Pb, 1.9% Zn; 9.1 m @ 5 gpt Ag, 1.53 gpt Au, 1.2% Pb, 1.4% Zn.
  • Impact Silver Corp. has received a report by a contractor with the analysis and interpretation of the geophysical surveys performed in the property since the 1990’s on the Capire area (Guerrero) of the Royal mines of Zacualpan (Estado de Mexico). “Condor utilized leading edge Inversion processing to produce 3D models of the IP and Magnetometer surveys and combined with the EM surveys has outlined a series of massive sulphide and vein hosted target areas”.
  • Grupo Mexico unveiled plans for the next few years, which include an investment of US$3,100 M (Mexican number notation) for refining metals in Sonora and electric infrastructure for El Arco in Baja California, and a US$2,300 M investment for expansion of smelter capacity in Sonora. Those projects are part of the US$9,000 M that Grupo Mexico plans to invest from 2021 to 2027.
  • Orla Mining Ltd. updated on the construction of the Camino Rojo Oxide project in Zacatecas. Construction is 22% complete, with $15.3 M spent in the quarter, $64.3 M total to date of an estimated total capital expenditure of $134 M. Of 826 workers currently on the project, 15% are from local communities, 30% from Zacatecas State and 55% from other States. “… activities now focused on earth moving, concrete pouring, and structural and mechanical installations in the areas of the crushing circuit, MerrillCrowe plant, heap leachPR and process pond, camp, and administration offices”.
  • Excellon Resources Inc. provided an update on the mineral resource estimate for its Platosa mine in Durango. The new resource includes information from 187 exploration drill holes from surface and underground locations, or 21,400 m. Indicated resources now stand at 317 K tonnes @ 485 gpt Ag, 5.3% Pb, 5.5% Zn, containing 4.95 M Oz Ag, 36.8 M Lb Pb, 38.8 M Lb Zn and inferred resources at 42 K tonnes @ 749 gpt Ag, 4.3% Pb, 5.4% Zn, containing 1 M Oz Ag, 4 K tonnes Pb, 4 K tonnes Zn. At the Evolución project in Zacatecas, indicated resources stand at 6.4 M tonnes @ 64 gpt Ag, 0.1 gpt Au, 1.2% Pb, 1.3% Zn, containing 13.1 M Oz Ag, 19 K Oz Au, 140.7 M Lb Pb, 161.5 M Lb Zn, and inferred resources at 15 M tonnes @ 39 gpt Ag, 0.1 gpt Au, 0.8% Pb, 1.2% Zn, containing 18.5 M Oz Ag, 49 K Oz Au, 247.5 K tonnes Pb, 377.7 K tonnes Zn.
  • Gatos Silver Inc. released results from infill and extension drilling at its Los Gatos project in Chihuahua, and the commencement of drilling at the Esther zone. The drilling continues to identify mineralization beyond both ends of the deposit. Below the drill results table:

ON DEALS AND CORPORATE ISSUES

  • Telson Mining Corp. announced the restructuring of its board of directors and a corporate name change. Telson’s Board of Directors now consists of seven members as follows: David Rhodes, Natascha Kiernan, Tom Kelly, Mark Bailey, Roberto Guzman Garcia, Ruben Alvidrez Ortega and Ralph Shearing. Telson intends to change its corporate name to Altaley Mining Corp. to complement the board restructuring. Telson also reported the execution of a Financial Advisory Services Agreement with Endeavour Financial Ltd., to provide Telson with general corporate financial advice with respect to its strategic direction and corporate development (Tahuehueto, Durango).
  • Coeur Mining Inc. entered into an agreement to acquire 11.07 M shares (17.8%) of Victoria Gold Corp. from Orion COVI Ltd. on a transaction expected to close on May 11 subject to closing conditions.
  • Barksdale Resources Corp. entered into an agreement with Regal Resources to consolidate a 100% interest in the Sunnyside project in Arizona (also owns San Javier, Sonora).

ON SOCIAL RESPONSIBILITY

  • Endeavour Silver released its 2020 sustainability report, which informs on safety and health, training, community, environment and economic value activities during the period.
  • Pan American Silver, Equinox Gold and Torex Gold presented plans to reduce their carbon footprint. 
  • Hecla Mining released its 2020 sustainability report the steps the company take to reduce its environmental footprint. Health, safety, green energies, greenhouse emission reduction, reclamation work, human rights and diversity are some of the subjects covered.
  • Newmont Peñasquito informed on the work realized to better the water resources at El Verge, Zacatecas.
  • Peña Colorada is granting professional internships to 12 students from five universities.

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:  Old open cut in Sinaloa, with Ricardo Ramonett as scale. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the First Week of April, 2019

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By Jorge Cirett

During the 14th week of the year (April 1st to April 7th, 2019), at least 24 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, an initiative with anti-mining tones was discarded by the Senate. The undersecretary of mining stated that no changes to the mining law, or tax increases in mining are envisaged by AMLO’s administration, and that the focus is to be in decreasing the regulatory load to incentivize the sector. On the other hand, he stated that regulations have to be actualized, highlighting community consultations. ON EXPLORATION, In Sonora, Minaurum presented drilling results from several vein systems at its Alamos Silver property; Aloro submitted a new environmental permit for its Venados project. In Chihuahua, Sable Resources released a thick, good grade intercept from one hole at its Margarita project. In Veracruz, Azucar Metals disclosed good Au-Cu results from one more hole at its El Cobre property.  ON MINING, Consolidated Zinc has a new toll agreement for its Plomosas mine in Chihuahua. Endeavour Silver achieved commercial production at its El Compas mine in Zacatecas. Telson Mining released historic metallurgical test results that support higher precious metal recoveries for its Campo Morado mine in Guerrero. Alamos Gold has produced 2 M Oz Au at the Mulatos mine in Sonora. Torex Gold produced 77.8 K Oz Au during the last quarter at its Limon-Guajes mine in Guerrero. GoGold produced 288.7 K Oz Ag in Parral, Chihuahua. Arcelor Mittal invested over US$1 B on its Michoacan plant in 2018.   ON FINANCING, Sonoro Metals raised $650K. Defiance Silver closed the second tranche of its financing, raising $1.06 M. Sable Resources announced an offering to raise up to $1.5 M.  ON RESOURCES AND DEVELOPMENT, Mag Silver disclosed development advances at Juanicipio, Zacatecas. Sierra Metals disclosed positive drill results from testing of a geophysical anomaly at Bolivar, Chihuahua. Evrim informed on the increase in resources by First Majestic at the Ermitaño project in Sonora.  ON DEALS AND CORPORATE ISSUES, Alamos Gold sold a portfolio of non-core royalties. Bacanora Lithium continues to negotiate with Oman for funding of the Sonora Lithium project. Premier Gold divested of several properties, including the Santa Teresa property in Baja California. American Silver and Pershing Gold continue on its path to business combination. GoldCorp’s shareholders support the business combination with Newmont.  

ON MEXICO ISSUES

  • An initiative with anti-mining tones was discarded by the senate. The initiative presented on November 2018 by the now deceased senator Angelica Garcia, caused a fall in the value of mining companies in the Mexican stock market at the time of its presentation. The Comisiones Unidas de Mineria y Desarrollo Regional y de Estudios Legislativos discarded the proposal on March 27th, based on multiple deficiencies regarding operational overlapping of several government organisms and the lack of well-defined procedures on environmental and negative social impact issues.
  • Francisco Quiroga, undersecretary of mining, in an interview with El Financiero Bloomberg, stated that the Federal Government is not to realize changes to the Mining Law, nor to impose a tax increase in the mining industry. The priority, he said, is to reduce the regulatory load and to augment the financing of projects. He added that regulations have to be actualized in maters like community consults, but that there is no need to change the Mining Law. He also pointed that there are not going to be legal changes on the direct foreign investment in mining.

ON EXPLORATION

  • Minaurum Gold Inc. informed that three of the new vein systems at its Alamos Silver project host significant mineralisation at depth, and drilling has intersected five previously unknown blind veins. To date, 9 of the 15 vein systems identified have been drilled, and Minaurum plans to put at least one hole on each of these before turning to follow-up phase III drilling. Highlighted results from phase II drilling of new veins comprise: 9.6 m @ 198 gpt Ag, 0.17% Cu, 0.2% Pb, 0.9% Zn (or 269 gpt AgEq); 0.9 m @ 302 gpt Ag, 0.21% Cu, 0.5% Pb, 0.8% Zn (or 383 gpt AgEq); 2.05 m @ 181 gpt Ag, 0.15% Cu, 1.6% Pb, 1.5% Zn (or 338 gpt AgEq); 2.85 m @ 25 gpt Ag, 2.3% Pb, 10.6% Zn (or 618 gpt AgEq); 0.9 m @ 391 gpt Ag; 0.11% Cu, 0.4% Pb, 0.3% Zn (or 548 gpt AgEq). Good drill core mineralised intercepts have been obtained from the Minas Nuevas, Promontorio, San Jose, Europa-Guadalupe, Nueva Europa, Amalia, Tigre, Ana, Travesia and El Creston vein systems.
  • Sable Resources Ltd. announced results from one more drill hole at its Margarita project in Chihuahua. This drill hole is on the same section line than a deep hole from the previous drilling campaign, and extends mineralisation 350 m NW from other holes. Highlighted intervals comprise 37.35 m @ 117 gpt Ag, 0.7% Zn, 0.2% Pb, 0.17 gpt Au (or 177 gpt AgEq), including 0.90 m @ 353 gpt Ag, 0.6% Zn, 0.1% Pb (391 gpt AgEq) and 5.50 m @ 400 gpt Ag, 3.0% Zn, 1.1% Pb, 1.07 gpt Au (or 689 gpt AgEq), including 1.65 m @ 790 gpt Ag, 0.4% Zn, 2.0% Pb, 2.92 gpt Au (or 1,122 gpt AgEq). “This hole was intended to test close to surface mineralisation above low-grade mineralisation intercepted at depth in Hole 3 and we are delighted at hitting such strong, thick mineralisation.”
  • Aloro Mining Corp. submitted to SEMARNAT a new environmental permit for approval of drilling and road construction at its Los Venados property in Sonora. “Aloro was able to apply for the new permit after recently negotiating a new 3 year – 50 drill hole surface access agreement with the Mulatos Ejido.” The new permit is focused on the blind target in the SE corner of the concession, where a drill hole from the last campaign intersected 32 m of strong silicic alteration with brecciated vuggy quartz and sulfides, and 4.5 m @ 1.57 gpt Au.
  • Azucar Minerals Ltd. released results from one more drill hole at its El Cobre project in Veracruz. The hole, drilled on the Raya Tembrillo target in the northern edge of the Villa Rica zone, intercepted hypogene porphyry mineralisation from surface, with 168.1 m @ 0.56 gpt Au, 0.29% Cu, including 77.5 m @ 0.78 gpt Au, 0.35% Cu, which in turn include 27.95 m @ 1.53 gpt Au, 0.43% Cu and 12.1 m @ 2.04 gpt Au, 0.58% Cu.     

ON MINING

  • Consolidated Zinc Ltd. announced the execution of a new toll agreement for its Plomosas mine in Chihuahua, whilst still negotiating new offtake agreements for the concentrates. On March 22, CZL received the notification of termination of its toll agreement with Grupo Mexico (60-day termination notice), and by March 29 a toll agreement was executed with Triturado y Minerales La Piedrera S.A. de C.V. for processing of the ore at its Aldama concentrator facility. The Aldama plant has a 300 tonnes per day (or tpd) capacity that Plomosas can fully utilize. The contract is for 18 months with 6 months extension for CZL. “CZL will process Plomosas ore at both the Aldama Plant and Grupo Mexico Santa Eulalia concentrators for approximately a month under its contracts”. Negotiations are ongoing with a number of parties, “including Industrias Penoles S.A.B. de C.V. and Trafigura Beheer BV, to sell the Plomosas Zinc and Lead Concentrates”.
  • Endeavour Silver Corp. informed that commercial production was achieved in mid-March at El Compas mine in Zacatecas, its fourth mine in Mexico. “El Compas has a nominal plant capacity of 250 tonnes per day (tpd) at estimated recovery rates of 83% gold and 50% silver. From February 18 to March 17, the operation processed development ore from stockpile at an average production rate of 232 tpd (93% of design rate) and recovery rates of 73.5% gold (88% of design rate) and 45.5% silver (63% of design rate but only 13% of revenue)”.
  • Telson Mining Corp. released results of historic Leachox Process testing to try to increase Au and Ag recoveries on its Campo Morado mine tailings material, in Guerrero. The 2013 report by Maelgwyn Mineral Services for Nyrstar (then the mine operator) stated a maximum recovery of 65% Au, 75% Ag for 20 microns grinded material, and 45% Au, 81% Ag for 40 microns grinded material. “We could improve recoveries from current levels of gold at 15-20% and silver 30-40%, which would significantly increase the mines profitability by increasing the ounces of gold and silver produced at Campo Morado.”
  • Alamos Gold Inc. announced that its Mulatos mine in Sonora produced its two millionth ounce of gold in March 2019. “This milestone also marks the end of the 5% NSR royalty that the operation has been paying since the start of production in 2005. At the current gold price, this represents a savings of approximately $65 per ounce, which has already been incorporated into previously disclosed guidance…… The Mulatos operation has been an incredible success story. It started producing gold in 2005 with approximately a seven-year mine life and 14 years later, the mine still has six years of reserves ahead of it.”
  • Torex Gold Resources Inc. reported that in Q1, 2019, a total of 77,800 Oz Au were produced at its El Limon-Guajes mine in Guerrero. “Debt principal was reduced by $18.6 million, and cash balances at the end of the quarter were $119 million, including $26.8 million of restricted cash.” Field trials are underway for the first piece of equipment for the proprietary Muckahi mining system.
  • Gogold Resources Corp. announced record production of 288.7 K Oz Ag and 1,613 Oz Au  (or 424.2 K Oz AgEq) from its Parral tailings operation in Chihuahua.
  • Arcelor Mittal. invested $1,635 M during 2018 in Michoacan, while looking to expand its production capacity in Mexico, including a new line of sheeted steel plate, mining, and the modernization of its production plant. The new installations are located in Lazaro Cardenas, Michoacan, to take advantage of the Economic Special Zones to produce 5.3 M tonnes of steel, focusing on the higher aggregate value of sheet steel plate in the automotive and aerospace industries.

ON FINANCING

  • Sonoro Metals Corp. completed a non-brokered private placement, for gross proceeds of $650 K (Cerro Caliche, Sonora).
  • Defiance Silver Corp. closed the second tranche of its previously announced private placement, for gross proceeds of $1.06 M, paying $21.3 K finder’s fees and emitting 106.5 K non-transferable broker warrants (San Acacio, Zacatecas).
  • Sable Resources Ltd. announced a non-brokered offering that could raise up to $1.5 M (Margarita, Chihuahua).

ON RESOURCES AND DEVELOPMENT

  • Mag Silver Corp. disclosed audited consolidated results for 2018. At Juanicipio, in Zacatecas, operated by partner Fresnillo PLC, mine construction continues with “developing the three internal spiral footwall ramps at depth to access the full strike length of the Valdecañas Vein system; excavating and constructing the underground crushing chamber; advancing the conveyor ramp from both ends to and from the planned mill site….. integrating additional ventilation and other associated underground infrastructure, and progressing the construction of surface infrastructure facilities”. During 2018, 6,636 m of underground development were completed, taking the total to date to over 18.5 km. Some highlighted intersections of the 46,060 m of drilling during the year comprise: 11.6 m (true width, or TW) @ 783 gpt Ag, 2.57 gpt Au, 6.5% Pb, 9.5% Zn (Deep Zone West); 6.3 m @ 246 gpt Ag, 1.78 gpt Au, 7.2% Pb, 11.6% Zn, 0.4% Cu (Deep Zone East); 3.2 m @ 472 gpt Ag, 0.31 gpt Au, 0.4% Pb, 0.4% Zn (New Pre-Anticipada vein); 3.0 m (core length) @ 392 gpt Ag, 5.6 gpt Au. Mag remains well funded, with cash and cash equivalents of $130 M by the end of the year.
  • Sierra Metals Inc. reported positive results from drill testing a geophysical anomaly at the Bolivar West zone of their Bolivar mine in Chihuahua. Drilling of the Titan 24 chargeability  target identified and defined a new zone named West Extension to the Bolivar West zone, which is an extension of the Bolivar West structure. Highlighted drill intercepts comprise: 4 m @ 140 gpt Ag, 2.29% Cu, 7.6% Zn, 0.09 gpt Au (or 6.56% CuEq); 20 m @ 15 gpt Ag, 1.32% Cu, 1.16 gpt Au (or 2.42% ZnEq); 3 m @ 36 gpt Ag, 0.87% Cu, 8.5% Zn (or 4.63% CuEq).
  • Evrim Resources Corp. informed that First Majestic Silver Corp. announced a 20% increase in inferred resources over the maiden resource estimation of 2018 at the Ermitaño property in Sonora. A total of 8.81 M AgEq Oz (or 119 K AuEq Oz) were upgraded to indicated status, while 48.98 M AgEq Oz (or 659 K AuEq Oz) are defined as inferred resources. First Majestic is planning to complete 16,000 m of drilling during 2019.

ON DEALS AND CORPORATE ISSUES

  • Alamos Gold Inc. reported entering into an agreement for the sale of a portfolio of non-core royalties to Metalla Royalty & Streaming Ltd., for proceeds of USD$8.0 M in Metalla common shares with the right to receive additional an additional USD$0.6 M upon Metalla’s exercise of the La Fortuna option. The portfolio of 18 royalties being sold is all on assets not owned by Alamos in several countries. This includes a 2% NSR royalty on the El Realito property, adjacent to the La India mine in Sonora.
  • Bacanora Lithium PLC. Announced “that it remains in active discussions with the State General Reserve Fund of Oman (“SGRF”), the sovereign wealth fund of the Sultanate of Oman, to conclude the proposed US$65M Strategic Investment Agreement and Offtake Agreement for Bacanora’s flagship Sonora Lithium Project in Mexico……. the Company remains focused on completing the funding package in Q2 2019 with a view to commissioning a chemical processing plant and commencing first production at Sonora in H2 2021”.
  • Premier Gold Mines Ltd. announced the divestment of several properties in Canada, and the Santa Teresa property in Baja California. The divestment of the properties is the result of four transactions that accrued US$1.23 M to Premier. No information was provided on the parties involved on the transactions.
  • Americas Silver Corp. and Pershing Gold Corp. announced that the  Committee on Foreign Investment in the United States  (CFIUS)  has  completed  its  review  of  the  companies’  previously  announced  business  combination and  that  they expect their business combination transaction to be completed by April 3rd.
  • GoldCorp Inc. informed that GoldCorp’s shareholders have voted overwhelmingly in favour of the combination with Newmont Mining Corp.

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 above, quartz druse from a breccia in a Michoacan project. Picture by Jorge Cirett.

MAG Silver Files Preliminary Base Shelf Prospectus

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MAGSiverCorp

Vancouver, B.C. MAG Silver Corp. (TSX:MAG) (NYSE American:MAG) (“MAG”) today announced that it has filed a preliminary short form base shelf prospectus with the securities commissions in each of the provinces of Canada, except Quebec. The base shelf prospectus will allow MAG to offer up to US$200,000,000 of common shares, preferred shares, debt securities, subscription receipts, units and warrants from time to time over a 25-month period after Canadian securities regulatory authorities have issued a receipt for the final short form base shelf prospectus. The specific terms of any future offering of securities (if any), will be set forth in a shelf prospectus supplement. The Company has filed this base shelf prospectus to maintain financial flexibility but has no immediate intentions to undertake an offering.