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

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 Fourth Week of February, 2021.

By Miguel A Heredia

During the fourth week of the year (February 22th to February 28th, 2021), at least 39 press releases were announced by companies working in Mexico and 7 news published by the media, with eleven announcing financial rounds, nine reporting  on resources and development of their mine operations, seven disclosing deals and corporate issues, six commenting on Mexican issues, five informing on exploration results, five discussing social issues, and three communicating production and financial results.  ON MEXICO ISSUES, Mining and Steel companies resumed activities after power outage. Mining is on alert for the possibility that the Mexican Congress approves the initiative of President Andrés Manuel López Obrador to modify the Electricity Industry Law and favor Federal Electricity Commission (CFE). Los Gatos Silver announced restoration of full grid power at its Cerro Los Gatos mine in Chihuahua. According to the Fraser Institute, Chile, Peru, and Mexico have lost global appeal for mining investment. According to Fresnillo plc, half of the electricity used by the La Herradura mine in Sonora comes from clean energy. The president of Mexico, Andrés Manuel López Obrador, has remained firm in his decision not to grant new mining concessions, a measure that has been described as one of the main challenges for the sector.  ON EXPLORATION, In Sonora, Aztec Minerals and its JV partner Kootenay commenced 2021 exploration program at its Cervantes project, and SilverCrest released drill results from its Picacho project. In Nayarit, Xali delineated new drill targets at its El Dorado project. In Jalisco, GoGold released drill results from 12 holes collared at its Los Ricos North project.  ON MINING, Capstone informed that it is on track for ramp-up to 3,780 tonnes per day at its Cozamine mine in Zacatecas by end of Q1, 2021, and reported Q4 and full-year 2020 production and financial results. Gold Resource reported full year 2020 production and financial results from its Don David mine in Oaxaca. Torex announced Q4, 2020 and full year 2020 production and financial results from its Limon-Los Guajes mine complex in Guerrero.  ON FINANCING, Carlyle granted stock options to directors and consultants (Cecilia project, Sonora). Coeur announced its intention to offer USD $350M of senior notes due 2029 (Palmarejo mine, Chihuahua). Capstone closed a USD $150M silver stream agreement with Wheaton Precious Metals (Cozamine mine, Zacatecas). Discovery Metals announced that an aggregate of 31,140,000 common share purchase warrants were exercised (Cordero project, Chihuahua). Fabled announced an exercise of warrants for gross proceeds of $4,150,000 (Santa Maria property, Chihuahua). Orla completed layback agreement with Fresnillo on its Camino Rojo project in Zacatecas. Santacruz, through its subsidiary Carrizal Mining, entered into a definitive agreement with Minera Cedros, a subsidiary of Industrias Peñoles, to acquire the Zimapan mine in Hidalgo. SilverCrest completed its previously announced bought deal offering for gross proceeds of USD $138,069,000 (Las Chispas project, Sonora). Telson executed a LOI with Accendo Banco to provide financing up to USD $25M to complete the construction of its Tahuehueto mine in Durango, and also granted stock options to certain directors, officers, and insiders.  ON RESOURCES AND DEVELOPMENT, Alamos Gold reported minerals reserves and resources for the year-ended 2020 (Mulatos mine, Sonora). Aloro informed that Alamos Gold has initiated its field exploration program on its Los Venados project in Sonora. Chesapeake presented its 2021 work program at its Metates project in Durango. Excellon released results from underground expansion and exploration drilling from its Platosa property in Durango. Fabled released results from the third drill hole collared at its Santa Maria property in Chihuahua. GR Silver announced that it is conducting a ground geophysics program at its San Marcial project in Sinaloa, incorporating magnetometry and 3D IP. Orogen provided an update on its Ermitaño property in Sonora. Prime announced that a fifth core drill rig has been added at Los Reyes project, Sinaloa. Xtierra released drill results from two holes collared at the Victor Vein at its Bilbao deposit in Zacatecas.  ON DEALS AND CORPORATE ISSUES, Barksdale announced the appointment of its Corporate Secretary as well as the grant of stock options to directors, employees and consultants. Colibri signed an option agreement with Bimsa to acquire 100% interest in the Diamante gold project in Sonora. Equinox announced that shareholders and optionholders of Premier approved the acquisition (Mercedes mine, Sonora). GR Silver announced the appointment of its VP Corporate Comminications (Plomosas property, Sinaloa). Autlan announced the appointment of its CEO (Molango mine, Hidalgo). US Antimony announced that trading of its common shares at the New York Stock Exchange (NYSE) has been halted. VanGold announced the appointment of Ramón Dávila to join to its Advisory Board (Pinguico property, Guanajuato).   ON SOCIAL RESPONSIBILITY, Fresnillo plc through its San Julian mine reinforced sanitary measures with campaign in Guadalupe and Calvo, Chihuahua. Minera Media Luna (Torex Gold) and the Universidad de Guerrero signed an environmental monitoring agreement (Limon-Guajes mine complex, Guerrero). Minera Peñasquito (Newmont) donated ventilators to the Medical Specialties Unit (UNEME) in Zacatecas. Mina Santa Elena (First Majestic) donated rapid COVID 19 antigen tests and face masks to municipalities of Baviácora, Aconchi, San Felipe de Jesús, Huépac, Banámichi, and Arizpe in Sonora.

ON MEXICO ISSUES

  • Mining and Steel companies operating in Mexico resumed activities after power outage. The companies normalized their operations after the energy deficit caused by the polar wave in Texas affected their operations. Local operations in the silver, gold, coal and iron mines were suspended or restricted after the US state halting natural gas exports amid a historic winter storm. The interruption of natural gas shipments has generated calls for Mexico to invest in gas storage and diversify its energy matrix.
  • Mining is on alert for the possibility that the Mexican Congress approves the initiative of President Andrés Manuel López Obrador (AMLO) to modify the Electricity Industry Law and favor Federal Electricity Commission (CFE). AMLO said that he will seek to get his proposal approved without changing a single comma. The government last week began a campaign to emphasize the alleged damage that the actions of the IP have brought to the company headed by Manuel Bartlett. Mining is one of the industries that will be affected. Simply the companies that invested in self-supply projects managed to lower the cost of the fluid from 12 or 13 cents of a kilowatt (kw) / hour to 6.5 cents. Those that depend on CFE pay between 8 and 9 cents per kw / hour, far from the level of their competitors in Peru or Chile, which are at 6 cents, let alone those in the US at 4 cents and Canada 2 cents.
  • Los Gatos Silver Inc., announced restoration of full grid power at its Cerro Los Gatos mine in Chihuahua. Given the expedited restoration of full grid power, the outage has had minimal impact on the Company’s mining and processing activities.
  • According to the Fraser Institute, Chile, Peru, and Mexico have lost global appeal for mining investment. In Mexico, concerns about the policies of President Andrés Manuel López Obrador explain the reason for his fall from 4 positions in attractiveness to invest, to place 42. In perception of its policies, it was located in a weak 61st place after descending 10 notches. “The Federal Government is hostile towards the mining industry and is not issuing new permits,” said a company president, echoing concerns the industry has recently expressed.
  • According to Fresnillo plc, half of the electricity used by the La Herradura mine in Sonora comes from clean energy such as wind and solar, with which, through its strategy of sustainability reiterates its commitment to caring for the environment. It has allowed the saving of 4,051 Mhw, which represents an estimated reduction of 2 thousand 358 tons of CO2e. The company reports that for a decade it has invested in the use of renewable energy sources in order to make its processes cleaner and, with it, to be able, in the medium term, to achieve that 75% of its electricity consumption comes from of wind energy.
  • The president of Mexico, Andrés Manuel López Obrador (AMLO), has remained firm in his decision not to grant new mining concessions, a measure that has been described as one of the main challenges for the sector.  AMLO has repeatedly said that his administration will not award new concessions, as his predecessors would have given parts of the country to mining companies too easily. While it may be difficult to obtain new concessions, mining companies can still acquire properties in the secondary market, since there are concession holders who are willing to sell if necessary.

ON EXPLORATION

  • Aztec Minerals Corp.,  and its JV partner Kootenay Silver Inc., commenced their 2021 exploration program at its Cervantes project in Sonora. The plan is to conduct a +500 soil samples to cover 518 hectares with 100m by 100m spaced samples aimed at extending previous soils grid and covering the Estrella and California North targets to the western, northern, and eastern limits of the property. Detailed lithologic, alteration, structural mapping and rock chip sampling will proceed along with the soil sampling program.
  • SilverCrest Metals Inc., released drill results from its Picacho project in Sonora. The best intercepts from initial drilling include hole PI-20-006 with 40.49 g/t Au, and 260 g/t Ag (3,297 g/t AgEq) over a true width (TW) of 7.25m; and hole PI-20-001 with 8.5 g/t Au and 51 g/t Ag (689 g/t AgEq) over a TW of 16.4m. To date, 42 drill holes have been collared at the Picachos property, with 21 intercepting an average of 4.1m with grades of 8.14 g/t Au and 50 g/t Ag (660 g/t AgEq).
  • Xali Gold Corp., delineated new drill targets at its El Dorado project in Nayarit, through the development of a new 3D geological model. The 3D model visualized high grade mineralization occurring in multiple parallel veins. Drill permits are in progress and are expected to take 3-4 months to get them approved.  Drilling is planned to test potential lateral extensions to the high grade zone.
  • GoGold Resources Inc., released drill results from 12 holes collared at its Los Ricos North project. Significant drill intercepts were encountered in hole LRGF-20-025 (Salomon area) with 0.26 g/t Au, 95 g/t Ag, (1.53 g/t AuEq or 115 g/t AgEq) over 70.5m, including 0.59 g/t Au and 251 g/t Ag (3.94 g/t AuEq or 295 g/t AgEq) over 20.1m, including 0.99 g/t Au and 404 g/t Ag (6.37 g/t AuEq or 478 g/t AgEq) over 10.1m, hole  LRGF-20-025 (Guitarrillas area) with 0.35 g/t Au and 107 g/t Ag (1.77 g/t AuEq or 133 g/t AgEq) over 18.3m, including 2.17 g/t Au and 566 g/t Ag (9.71 g/t AuEq or 728 g/t AgEq) over 2m; hole LRGF-21-033 (Salomon area) with 0.59 g/t Au and 116 g/t Ag (2.14 g/t AuEq or 160 g/t AgEq) over 33.9m, including 1.25 g/t Au and 433 g/t Ag (7.02 g/t AuEq or 527 g/t AgEq) over 3m; hole LRGF-21-033 (Guitarrillas area) with 1.94 g/t Au and 275 g/t Ag (5.6 g/t AuEq or 420 g/t AgEq) over 5.8m, including 4.14 g/t Au and 544 g/t Ag (11.39 g/t AuEq or 854 g/t AgEq) over 2.1m; and hole LRGF-21-033 (Los Chivos area) with 2 g/t Au and 486 g/t Ag (8.48 g/t AuEq or 636 g/t AgEq) over 8.8m, including 7.36 g/t Au and 1,693 g/t Ag (29.94 g/t AuEq or 2,245 g/t AgEq) over 2.3m.

ON MINING

  • Capstone Mining Corp., informed that it is on track for ramp-up to 3,780 tonnes per day at its Cozamine mine in Zacatecas by end of Q1, 2021.  During the period Q4, 2020, Capstone produced 10.3M Lb Cu at a cash cost of USD $0.63 per Lb Cu produced, and a total of 37.9M Lb in 2020 at a cash cost of USD $0.69 per Lb Cu produced.
  • Gold Resource Corporation reported full year 2020 production and financial results from its Don David mine in Oaxaca.  The company produced 20,473 Oz Au, 1.19M Oz Ag, 3.57M Lb Cu, 17.3M Lb Pb, and 44.12M Lb Zn in 2020, at a cash and AISC of USD $784 and USD $1,365 respectively per Oz AuEq, for a net income of USD $4.4M with revenue of USD $90.7M and mine gross profit of USD $12.5M.
  • Torex Gold Resources Inc., announced Q4, 2020 and full year 2020 production and financial results from its Limon-Los Guajes mine complex in Guerrero.  Torex produced in Q4, 2020, a total of 130,649 Oz Au at a cash and AISC of USD$579 and USD $886 per Oz Au produced, and sold 133,063 Oz Au for a net income USD $91.9M an adjusted EBITDA of USD $158.5M, cash flow from operations of USD $137.1M, and a free cash flow of USD $70.3M.  For the full year 2020, Torex reported a production of 430,484 Oz Au, at a cash an AISC of USD $672 and USD $924 per OZ Au produced respectively, with a sale of 437,310 Oz Au at a realized Au price of USD $1,771 per Oz, for revenue of USD $789M, a net income of USD $109M, an adjusted EBITDA of USD $431M, and an operating cash flow of USD $342M. Net cash for the year 2020 was USD $161.6M.

ON FINANCING

  • Carlyle Commodities Corp., granted stock options to directors and consultants for the purchase of 2.79M shares. The options are exercisable for a period of 5 years at an exercise price of $0.14 per share (Cecilia project, Sonora).
  • Coeur Mining Inc., announced its intention to offer USD $350M of senior notes due 2029. Net proceeds from the Offering will be used to pay the purchase price and tender premium for up to all USD $230M aggregate principal amount of its 5.875% senior notes due 2024, to pay the redemption price to redeem any of the 2024 notes that are not so tendered in the concurrent tender offer and to pay the fees and expenses in connection with the offering, the concurrent tender offer and any redemption of the 2024 notes. To the extent that the company has excess proceeds from the offering, the company intends to use such excess amounts for general corporate purposes (Palmarejo mine, Chihuahua). 
  • Capstone Mining Corp., closed a USD $150M silver stream agreement with Wheaton Precious Metals.  “All conditions to complete the Stream Agreement have been fulfilled and Capstone has received USD $150M from Wheaton for 50% of the silver productions until 10M Oz Ag have been delivered, thereafter dropping to 33% of silver production, for the life of mine from the Company’s Cozamin Mine in Zacatecas, Mexico. Wheaton will make ongoing payments equal to 10% of the spot silver price at the time of delivery for each ounce delivered to them”. 
  • Discovery Metals Corp., announced that an aggregate of 31,140,000 common share purchase warrants were exercised at a price of CAD $1.0 for gross proceeds of approximately CAD $31M. The company´s current cash balance has increased to approximately CAD $98M (Cordero project, Chihuahua)
  • Fabled Silver Gold Corp., announced an exercise of warrants for gross proceeds of $4,150,000. Following the exercise of the warrants, Fabled continues to have a total of 50,500,000 share purchase warrants outstanding that were previously issued under the financing. The Company has 185,251,903 total shares issued and outstanding as at February 19, 2021 (Santa Maria property, Chihuahua).   
  • Orla Mining Ltd., completed layback agreement with Fresnillo on its Camino Rojo project in Zacatecas. Orla will pay Fresnillo a total cash consideration of USD $62.8M through staged payments. The first payment of USD $25M was due to Fresnillo on closing of the transaction.
  • Santacruz Silver Mining Ltd., through its subsidiary Carrizal Mining SA de CV,   entered into a definitive agreement with Minera Cedros, a subsidiary of Industrias Peñoles SAB de CV, to acquire the Zimapan mine in Hidalgo and related assets, for a total consideration of USD $20M plus a VAT of USD $3.2M.  Assets to be acquired include a processing facility with a capacity of 75K dry tonnes per month, and Zn, Pb, Cu circuits; surface and underground infrastructure required for day to date operations; and 34 mining concessions totalling 5,139 hectares. Santacruz also entered into a loan facility with Trafigura México SA de CV in the amount of USD $17.6M from which USD $15M will be advanced to Peñoles on behalf of Carrizal on closing of the acquisition. The remains balance, USD $8.2M, is being financed by Minera Cedros. The USD $2.6M balance of the Trafigura loan represents the refinancing of existing debt owing to Trafigura by Carrizal and an affiliate.
  • SilverCrest Metals Inc., completed its previously announced bought deal offering for gross proceeds of USD $138,069,000. Gross proceeds will be used to expand the Las Chispas resources and reserves, through further drilling, to optimize the mine and processing plant design, to explore regional targets, and for general working capital purposes.  
  • Telson Mining Corporation executed a LOI with Accendo Banco SA de CV to provide financing up to USD $25M to complete the construction of its Tahuehueto mine in Durango. Telson also granted stock options to certain directors, officers and insiders of up to an aggregate 4.7M shares in the capital stock of the Company.  The options are exercisable on or before February 25, 2026 at a price of $0.30 per share, and the Company has also re-priced 1,873,333 stock options originally granted as to; 1,423,333 exercisable at $0.71 till November 10, 2022, 400,000 exercisable at $0.72 till April 16, 2023 and 50,000 exercisable at $0.71 till April 23, 2023.

ON RESOURCES AND DEVELOPMENT

  • Alamos Gold Inc., reported minerals reserves and resources for the year-ended 2020. Proven and probable reserves at Mulatos mine in Sonora are 33,935,000 tons of 1.24 g/t Au for a total of 1.35M Oz Au. Measured + indicated resources are 74,193.000 tonnes of 1.09 g/t Au for a total of 2.6M Oz Au, and Inferred resources are 9,291,000 tonnes of 0.91 g/t Au for a total of 271K Oz Au. Mineral reserves are exclusive of mineral resources.
  • Aloro Mining Corp., informed that Alamos Gold has initiated its field exploration program on its Los Venados project in Sonora. Focus of the program is the south portion of the property, adjacent to the Mulatos open pit.
  • Chesapeake Gold Corp., informed over its 2021 work program at its Metates project in Durango. This program will consists of approximately 2,500m drilling to recover 10 tonnes of PQ size material to conduct on 40 test columns metallurgical testwork focused on a new heap leach option, to determine the impacts of size, regent strengths, and ore types to determine the optimum oxidation and precious metal leaching parameters. In parallel, Chesapeake will update the previous PSF and add a scoping study for the sulphide heap leach to demonstrate the potential upside of this option.
  • Excellon Resources Inc., released results from underground expansion and exploration drilling from its Platosa property in Durango. Significant drill intercepts were encountered at the Rodilla, NE-1S, and Pierna Mantos with diamond drilling from underground in hole EX20UG491 at the Rodilla Area with 1,023 g/t Ag, 9.3% Pb, 4.5% Zn, and 0.1 g/t Au (1,422 g/t AgEq) over 8.9m, including 3,499 g/t Ag, 29.7% Pb, 10.3% Zn, and 0.1 g/t Au (4,623 g/t AgEq) over 2.2m; hole EX20UG493 at NE-1S Area with 673 g/t Ag, 6.7% Pb, and 7.1% Zn (1,092 g/t AgEq) over 2.4m;  hole EX20UG506 at 623 Area with 1,258 g/t Ag, 7.5% Pb, 2.4% Zn, and 0.1 g/t Au (1,258 g/t AgEq) over 1.6m; and hole EX21UG515 at Gap Area with 721 g/t Ag, 4.1% Pb, and 4.5% Zn (984 g/t AgEq) over 4m. Drilling continues to define and discover new mineralization in the gap Area with 300m of potential mineralized strike to be explored.
  • Fabled Silver Gold Corp., released results from the third drill hole collared at its Santa Maria property in Chihuahua. This third hole is part of an ongoing 8,000m drill program and intersected 85 g/t Ag and 0.49 g/t Au over 12.5m, including 214 g/t Ag and 1.08 g/t Au over 1.8m. “The 12.50 meter intersection has clearly defined a footwall and hanging wall structure with corresponding elevated silver values up to over 7 ounces of silver and remains open at depth. More importantly, the structure is very conformable and intersected exactly where predicted, which bodes very well for the expansion of Santa Maria and increasing the present NI 43-101 resources on the property with only 3 drill holes drilled to date.”
  • GR Silver Mining Ltd., announced that it is conducting a ground geophysics program at its San Marcial project in Sinaloa, incorporating magnetometry and 3D IP. The survey will initially focus on the resource area to characterize the known Ag-Pb-Zn mineralization therein, which hosts the NI 43-101 resource.
  • Orogen Royalties Inc., provided an update on its Ermitaño property in Sonora, currently under control of First Majestic Silver Corp., where Orogen holds a 2% NSR. Last January, First majestic announced a USD $42.1M investment for the development of Ermitaño project to support the construction of an underground mine infrastructure that began last year. First majestic plans to release a PEA by the end of March, and is currently conducting hydrological studies and geotechnical drilling for an upcoming PFS that is expected to be released in H2, 2021.  In addition, the company also plans to extract 30K to 60K tonnes of material for metallurgical testwork.
  • Prime Mining Corp., announced that a fifth core drill rig has been added at its Los Reyes project, Sinaloa. Prime commenced a 15,000m drill program in December 2020 and only ten has been completed to date. The plan is to complete the phase 1 drilling before onset of the rainy season in mid-August, complete a new geological resource model during the rainy season hiatus and then initiate an aggressive Phase 2 drilling program in Q4 2021.
  • Xtierra Inc., released results from two holes collared at the Victor Vein, located adjacent to and west of its Bilbao deposit in Zacatecas. Hole X6B intersected 108 g/t Ag, 0.31% Pb, 0.08% Zn, and 0.03% Cu (120 g/t AgEq) over a true width (TW) of 1.148m, and hole X7B intersected 61 g/t Ag, 5.5% Pb, 4.41% Zn, and 0.08% Cu (336 g/t AgEq) over a TW of 9.37m, including 82 g/t Ag, 6.8% Pb, 6.9% Zn, and 0.29% Cu over a TW of 0.61m, including 63 g/t Ag, 6% Pb, 6.4% Zn, and 0.08% Cu (412 g/t AgEq) over a TW of 0.36m, including 119 g/t Ag, 13.6% Pb, 11.4% Zn, and 0.01% Cu (795 g/t AgEq) over a TW of 0.70m, and including 107 g/t Ag, 8.2% Pb, 6.9% Zn, and 0.54% Cu (566 g/t AgEq) over a TW of 0.50m.

ON DEALS AND CORPORATE ISSUES

  • Barksdale Resources Corp., announced the appointment of its Corporate Secretary as well as the grant of stock options to directors, employees and consultants (San Javier project, Sonora).
  • Colibri Resources Corporation signed an option agreement with Bimsa Minera SA de CV to acquire 100% interest in the Diamante gold project in Sonora.   The Diamante property comprises two 1,057 hectares in two properties that borders El Mezquite project immediately to the west, and about 1.6km northwest of Colibri’s 1,130-ha Jackie project. To earn an initial 50%, Colibri has to pay USD $100K and incur the expense of completing 2,000m of drilling over the course up to two years, and also will be responsible for all exploration cost while preparing for such drilling program. In addition, Colibri will pay ½ of the property tax and security costs during this period.  Upon completion of its 50% earn-in, Colibri will become equal joint venture partners with Bimsa Minera and then Colibri will have an exclusive period of six months to purchase the remaining 50% of the joint venture by paying Bimsa Minera either of: i) USD $2.1M or ii) USD $1.4M and the grant of a 2% net smelter royalty (NSR) on the project.
  • Equinox Gold Corp., announced that shareholders and optionholders of Premier Gold Mines Limited approved the acquisition by Equinox Gold. “On closing of the Transaction, Premier shareholders will receive 0.1967 of an Equinox Gold share for each Premier share held, such that existing Equinox Gold and Premier shareholders will own approximately 84% and 16% of Equinox Gold, respectively, on an issued share basis. The Transaction is expected to close in March subject to certain regulatory approvals and other customary closing conditions”.  By approving the Transaction, Premier securityholders also approved the spin-out to Equinox Gold and Premier shareholders shares of a newly created US-focused gold production and development company to be called i-80 Gold Corp. (Mercedes mine, Sonora).
  • GR Silver Mining Ltd., announced the appointment of its VP Corporate Comminications (Plomosas property, Sinaloa).   
  • Compañía Minera Autlan SAB de CV announced the appointment of its CEO (Molango mine, Hidalgo).   
  • US Antimony Corporation announced that trading of its common shares at the New York Stock Exchange (NYSE) has been halted since before the opening of trading on Wednesday, February 17, 2021 as a consequence of selling common shares in a manner that violated Sections 301 and 713 of the Company Guide. “The violations relate to two non-underwritten transactions involving the sale of an aggregate of26,290,000 shares of common stock at a discount to the market price at the time of each transaction, with the first transaction, which closed on February 3, 2021, involving the sale of 15,300,000 shares of common stock at a purchase price of $0.70 per share, and with the second transaction, which closed on February 16, 2021, involving the sale of 10,990,000 shares of common stock at a purchase price of $1.30 per share”. The Company has been advised by NYSE Regulation that the Company’s common stock will resume trading on the NYSE American following the issuance of this press release and the filing of a Current Report on Form 8-K disclosing the receipt of the Letter, which the Company anticipates will be prior to the open of trading on Friday, February 19, 2021.
  • VanGold Mining Corp., announced the appointment of Ramón Dávila to join to its Advisory Board (Pinguico property, Guanajuato).  

ON SOCIAL RESPONSIBILITY

  • Fresnillo plc reinforced sanitary measures with campaign in Guadalupe and Calvo, Chihuahua.  Personnel from the San Julian mine delivered five thousand washable face masks through a caravan of more than 25 volunteers. The municipality of Guadalupe y Calvo has received different donations of face masks from the mining company that operates San Julian mine, adding more than 30 thousand items delivered. These surgical cloth mouth covers were manufactured by the “Yerbitas” community sewing workshop.
  • Minera Media Luna (Torex Gold) and the Universidad de Guerrero signed an environmental monitoring agreement  to encourages the inhabitants of Nuevo Balsas, Atzcala and Mezcala, communities located around the El Caracol dam and the Balsas rivers and San Juan de Cocula, to get involved in the Participatory Environmental Audit. “During the protocol ceremony, it was reported that 42 residents of Nuevo Balsas have participated in the taking of water and sediment samples, another 260 fishermen from the same town, Atzcala and Mezcala were surveyed for the evaluation of the fishing effort”. (Limon-Guajes mine complex. Guerrero).
  • Minera Peñasquito (Newmont) donated ventilators to the Medical Specialties Unit (UNEME) in Zacatecas. This UNEME has been converted into a COVID-19 Hospital for services of health, which receives people affected by SARS -Cov 2 from the State of Zacatecas, who require hospitalization and who are not beneficiaries of other social security systems. With this donation, Newmont reaffirms its commitment to Zacatecas in support of the most vulnerable population in the state and joins the efforts of health authorities in their fight against this pandemic. Newmont has delivered in Zacatecas more than MXP $28M, in hospital supplies and food packages.
  • Mina Santa Elena (First Majestic) donated rapid COVID 19 antigen tests and face masks to municipalities of Baviácora, Aconchi, San Felipe de Jesús, Huépac, Banámichi, and Arizpe in Sonora, with the aim of detecting suspicious cases and mitigating risks of contagion.

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

On the picture above, a quartz hydrothermal breccia displaying cockade texture and a quartz vein displaying boiling texture in an intermediate sulphidation epithermal system in a prospect in Chihuahua, Mexico.  Photo by Miguel A Heredia., Mexico.

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

By Jorge Cirett

During the 52nd week of the year (December 21st to December 27th, 2020), at least 28 press releases were announced by companies working in Mexico. To note, six companies posted exploration advances on their properties, six more made announcements related to their shares, three more released resource related news and five more on deals/corporate matters. ON MEXICO ISSUES, the Covid pandemic has not dented mining company’s performance on the BMV. The illegal blockade on Los Filos mine, Guerrero, has been lifted (without great help from the authorities). ON EXPLORATION, in Sonora, Tocvan Ventures informed the RC drilling program has been completed at its Pilar project. In Chihuahua, Radius Gold informed on the status of its Amalia and Plata Verde projects; Mammoth Resources informed it has signed a surface agreement with two ejidos at Tenoriba. In Sinaloa, Mithril Resources released drilling results from Los Reyes, Copalquin. In Nayarit and Jalisco, Candente Gold is studying and permitting the Cocula and El Dorado projects, as well as a processing plant.  ON MINING, Golden Minerals has commenced mining at Rodeo, in Durango. Equinox Gold informed the illegal blockade on the Los Filos projects has been lifted. ON FINANCING, Orla mining is now listed on the NYSE. Consolidated Zinc consolidated its shares on a 15 to 1 basis. Azucar Minerals granted stock options to directors, employees and consultants for $465 K. Reyna Silver issued $299 K in shares to five directors and officers. VanGold Mining and Canuc Resources announced financing rounds for C$7.5 M and $300 K respectively. ON RESOURCES AND DEVELOPMENT, Sonora Gold is assessing to increase the capacity of the planned heap leach operation at Cerro Caliche, in Sonora, to 20,000 tdp. Sierra Metals filed a NI-43-101 report updating the resource base on its Cusi mine, in Chihuahua. Minera Alamos filed on SEDAR the technical report and mineral resource estimate for the Cerro de Oro project, Zacatecas. ON DEALS AND CORPORATE ISSUES, VanGold Mining signed the acquisition of El Cubo mine and El Cubo mine complex in Guanajuato with Endeavour Silver. Almaden Minerals received notification from SEMARNAT that its permit application to develop the Ixtaca project in Puebla has been rejected. Maverix Metals informed on the acquisition of royalties from the Camino Rojo project in Zacatecas and the Cristina project in Chihuahua, as well as the sale of a royalty on the Yecora project in Sonora. Odyssey Marine Exploration informed it has gained more financial support for its litigation against the Mexican government for its refusal to concede a mining permit on its “Exploraciones Oceánicas” offshore phosphate project in Baja California Sur. Elemental Royalties informed it holds a 1% NSR on the Mercedes mine, Sonora, which is owned by Equinox Gold. ON SOCIAL RESPONSIBILITY, Peñoles has been supporting soccer tournaments since 2011.

ON MEXICO ISSUES

  • The Covid pandemic has not dented mining company’s performance on the BMV (Bolsa Mexicana de Valores). At the beginning of the year the four biggest companies in the BMV (Grupo Mexico, Peñoles, Frisco and Autlán) were worth $524,500 million pesos, and now these are valued in $796,500 million pesos (US$39.5 billion), a 51.8% increase. These gains contrast with the expected decline of 25% in exploration, partly die to the pandemic, partly also due to the lack of certitude on government policies, delays or denials of permitting (see note on Almaden) and a greater tax burden.

ON EXPLORATION

  • Radius Gold Inc. informed on the exploration status of its projects in Mexico. At Amalia, in Chihuahua, Radius’s joint venture partner, Pan American Silver Corp. is funding and operating the phase 4 drill campaign, of which 1,838 m in 4 holes have been completed. At Plata Verde, also in Chihuahua, orientation induced polarization and ground magnetic surveys are being conducted. The target mineralized breccias occur under less than 100 m of volcanic cover rocks, and the geophysical surveys are planned to aid drill targeting.
  • Mammoth Resources Corp. announced the second of two ejidos (community held surface land) voted in favor of a two-year surface agreement for exploration at its Tenoriba project in Chihuahua. During “the term of the agreements the Company will be making contributions towards a number of community benefit programs and looks forward to reporting on these contributions. Mammoth will also be providing assistance to a number of the most vulnerable inhabitants of both ejidos”.
  • Mithril Resources Ltd. released good drilling results from Los Reyes target at Los Reyes project in Durango (not to mistake for Prime Mining’s Los Reyes project in Sinaloa).  Highlighted core length intercepts comprise 2.22 m @ 32.35 gpt  Au, 185 gpt Ag; 0.70 m @ 9.3 gpt Au, 125 gpt Ag; 1.20 m @ 2.05 gpt Au, 85 gpt Ag in one hole and 3.0 m @ 2.86 gpt Au, 84 gpt Ag (including 0.6 m @ 9.79 gpt Au, 165 gpt Ag) in other. Drilling is to recommence in early January 2021 at El Refugio target, whereas soil sampling is programmed for El Refugio West, La Soledad West, El Indio and Zaragoza prospects in January-February 2021.
  • Prismo Metals Inc. completed its 2020 drilling campaign at Palos Verdes, Sinaloa. A total of 436.8 m were drilled in four holes, and a fifth hole is to be completed in January 2021. The holes intercepted wide zones of discrete quartz veins in andesite with quartz and stockwork quartz veining, local pyrite and sphalerite. Results pending.
  • Tocvan Ventures Corp. informed on the completion of its campaign of reverse circulation drilling at its Pilar project, Sonora. A total of 1,505 m were drilled in nine holes, with results expected in early 2021.
  • Candente Gold Corp. announced that technical experts have been engaged for permitting and deposit modelling for the El Dorado (Nayarit) and Cocula (Jalisco) projects and for permitting of the San Dieguito de Arriba (Nayarit) plant.

ON MINING

  • Golden Minerals Corp. announced it has begun mining at its Rodeo property, Durango.  Material over 3.0 gpt Au is to be transported in January to Golden’s Velardeña 200 tpd mill. A second ball mill is to be installed to increase the processing capacity to 450 tpd.
  • Equinox Gold Corp. reported that “the blockade by members of the Carrizalillo community at the Company’s Los Filos Mine in Mexico has been removed and access to the mine has been restored. Representatives from Los Filos continue to meet regularly with community leaders to reach consensus on the remaining items related to benefits provided under the Carrizalillo social collaboration agreement”.

ON FINANCING

  • Orla Mining Ltd. is now listed on the New York Stock Exchange. Orla’s addition to the exchange is classified as a “dual listing without capital raise”.  (Camino Rojo, Zacatecas).
  • Consolidated Zinc Ltd. informed the 1 to 15 consolidation of the company securities is now complete (Plomosas, Chihuahua).
  • Azucar Minerals Ltd. has granted stock options to certain directors, employees, and consultants of the company to purchase 465 K common shares in the capital of Azucar (El Cobre, Veracruz).
  • VanGold Mining Corp. announced a part and parcel non-brokered private placement financing for gross proceeds of C$7.5 M (El Cubo, Guanajuato).
  • Canuc Resources Corp. announced the closing of a non-brokered private placement for gross proceeds of $300 K (San Javier Silver-Gold, Sonora).
  • Reyna Silver Corp. issued $299 K of its common shares toward partial annual compensation to five directors and officers of the Company (Guigui, Chihuahua).

ON RESOURCES AND DEVELOPMENT

  • Sonora Gold Corp.  informed on the expansion of several mineralized zones at its Cerro Caliche property in Sonora. Based on these results Sonoro is assessing the viability of a heap leach mining operation with an increased capacity form 8,000 to 20,000 tonnes per day. Highlighted core length intervals comprise 11.7 m @ 0.92 gpt Au; 11.25 m @ 1.08 gpt Au; 8.45 m @ 1.4 gpt Au; 5.7 m @ 1.25 gpt Au in the El Colorado zone, and 13.72 m @ 0.47 gpt Au; 15.24 m @ 0.40 gpt Au; 21.33 m @ 0.47 gpt Au; 25.91 m @ 0.42 gpt Au at Los Japoneses.
  • Sierra Metals Inc. filed a NI 43-101 report updating the resource base on its Cusi mine, in Chihuahua. Measured and indicated resources now consist of 5.36 M tonnes @ 182 gpt Ag, 0.12 gpt Au, 0.49% Pb, 0.58% Zn (215 gpt AgEq), and inferred resources of 4.89 M tonnes @ 146 gpt Ag, 0.18 gpt Au, 0.43% Pb, 0.69% Zn (183 gpt AgEq). (Note.- this should amount to close to 55 M Oz Ag, not counting other metals credits).
  • Minera Alamos Inc. filed on SEDAR the technical report and mineral resource estimate for the Cerro de Oro project, Zacatecas. The inferred mineral resource on oxide ore is 48 M tonnes @ 0.41 gpt Au, containing 630 K Oz Au.

ON DEALS AND CORPORATE ISSUES

  • VanGold Mining Inc. signed a binding letter agreement with Endeavour Silver Corp. to acquire the El Cubo mill and mill complex, in Guanajuato, 8 km from its El Pinguico property. El Cubo complex includes two underground operating mines (in care and maintenance) and a 1,500 tpd flotation plant.  VanGold intends to restart the mill at approximately 750 tpd “using mineralized material from its surface and underground stockpiles at its El Pinguico project as a significant portion of its estimated throughput for the first 36 months of operation”. El Cubo has measured, indicated and inferred resources of 2.4 M Oz Ag and 28.2 K Oz Au.
  • Almaden Minerals Ltd. Has received notification from the Mexican federal permitting authority, Secretaría de Medio Ambiente y Recursos Naturales (SEMARNAT) that the company’s initial environmental permit application (MIA) in respect of the Ixtaca project has not received approval. Almaden originally submitted the MIA in early 2019. The SEMARNAT resolution cites insufficient information regarding the impacts of open pit mining on the environment, local and regional area. “The Company is continuing its review of SEMARNAT’s response to the MIA and is evaluating its alternatives which include the re-submittal of a revised MIA, continuing dialogue, and legal options”.
  • Maverix Metals Inc. informed on some royalties included in the Newmont Corporation royalty portfolio acquired in October 29, 2020. Orla Mining Ltd. elected not to exercise its ROFR (Right Of First Refusal) on the 2.0% net smelter return royalty of oxide and transitional ore production from the Camino Rojo project located in Zacatecas; Orla expects the first gold pour in the second half of 2021. Criscora, S.A. de C.V., a wholly owned subsidiary of TCP1 Corporation, will acquire the 1.0% NSR royalty on the Yecora project located in Sonora, for a cash payment of $1.5 M, which Maverix will receive. The ROFR on the Cristina project located in Chihuahua, was not exercised and Maverix will acquire the 2.0% NSR royalty.
  • Odyssey Marine Exploration Inc. has secured up to an additional $10 M to support its pending North American Free Trade Agreement (NAFTA) claim against Mexico. The NAFTA claim relates to the “unlawful denial of the environmental permit for subsidiary Exploraciones Oceanicas’ (ExO’s) offshore phosphate project” in Baja California Sur.  The project, said to be one of the largest and highest quality phosphate sands deposits in the world, is subject to a $2.36 billion claim against Mexico under NAFTA.
  • Elemental Royalties Corp. disclosed it owns a 1% Net Smelter Returns (“NSR”) royalty on Premier’s Mercedes Mine, a key asset in the Premier portfolio, which becomes payable to Elemental from July 28, 2022 following a time hurdle. Premier Gold Mines Ltd. was recently acquired by Equinox Gold Corp.

ON SOCIAL RESPONSIBILITY

  • Peñoles has been supporting soccer tournaments since 2011 with the installation of the “Copa Santos Peñoles”. The last edition of the tournament (2019) counted with the participation of 288 teams.

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

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

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

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By Jorge Cirett

During the 26th week of the year (June 22nd to June 28th, 2020), at least 30 press releases were announced by companies working in Mexico. Notably, 6 of those were exploration updates and 6 more related to financing. ON MEXICO ISSUES, Mining and  Automotive industries are to operate even if there is a resurgence of Coronavirus cases. The Mining Fund Technical Committee approved US$11.6 M for 98 projects in 11 States. Canadian Mining companies are under pressure to pay disputed taxes. AMLO rejected the idea of nationalizing the lithium industry…. but declares the conditions on which those conditions are granted have to be reviewed (Keep in mind what’s been happening in the electricity industry).  ON EXPLORATION, in Sonora, Ridgestone completed a maiden drill program on its Rebeico project; Tarachi Gold acquired the Tarachi property in Sonora; Aztec Minerals identified multiple chargeability anomalies at its Cervantes project; Tocvan Ventures released strong results of its soil program on the Pilar project. Vizsla Resources released high grade drilling results from its Panuco project. GoGold Resources released results from three more drill holes at its Los Ricos South project.  ON MINING, VanGold Mining plans to clearing the shaft at the Pinguico property to provide access for sampling and eventually infill extraction. ON FINANCING, Southern Silver is eyeing a private placement to raise up to C$7 M. Aura Minerals authorized a dividend’s policy. First Mexican Gold granted 2.5 M options to directors, officers and consultants. Orex Minerals raised $989 K on the closing of the first tranche of its non-brokered private placement. Apollo Gold aims to raise up to $5 M. McEwen Mining refinanced its $50 M senior secured term loan facility.   ON RESOURCES AND DEVELOPMENT, GR Silver Mining released drill results from historic holes at its Plomosas project in Sinaloa. Magna Gold filed a technical report on its San Francisco mine, in Sonora. SilverCrest Metals updated on the development of the Las Chispas project under the Coronavirus emergency. ON DEALS AND CORPORATE ISSUES, Argonaut Gold and Alio Gold announced that COFECE, the last bureaucratic hurdle, has cleared the transaction on its merger. Riverside Resources disclosed additional funding from BHP on its generative copper exploration program in Sonora. Southern Silver Exploration signed an agreement to acquire Electrum Global Holdings’s 60% share on the Cerro Las Minitas project in Durango. Candente Gold mobilized a team for the due diligence on the El Dorado project and the SDA mill in Nayarit. Hochschild optioned the Los Cuarenta property in Sonora from Riverside Resources. Apollo Gold Corp. entered into a LOI to option the “Jalisco Group of properties” from First Majestic. ON SOCIAL RESPONSIBILITY. Peñasquito donated medical supplies to the IMSS Hospital Número 12 in Concepción del Oro, Zacatecas. Esperanza Silver repaired the water supply system in San Agustín Tetlama, Morelos.

ON MEXICO ISSUES

  • Mining and the Automotive industries to operate, even if there is a resurgence (hypothetical) of Coronavirus cases. Graciela Márquez, Economy Secretary, explained these industries are essential, and are to continue activities under any color of the health lights system.
  • The Mining Fund Technical Committee approved the funding of 98 projects for US$11.6 M ($260.9 M pesos) for pavement laying, sidewalk construction and water supply nets. The funds are to be distributed as follows: Sonora US$6.12 M, Zacatecas US$2.47 M, Durango US$1.08 M, Coahuila US$0.93 M, Chihuahua US$0.71 M, San Luis Potosí US$0.21 M, Aguascalientes US$90 K, Jalisco US$54 K, Michoacán US$45 K, Oaxaca US$32 K and Hidalgo US$14 K.
  • Canadian Mining companies are under pressure to pay disputed taxes to the Mexican government, according to University academics on the matter.
  • The president of Mexico, Andres Manuel Lopez Obrador, rejected the idea of nationalizing the lithium exploitation in the country. His comment comes regarding the ideas expressed by Victor Manuel Toledo, Environment Secretary and staunch opponent of mining. According to the president, there is already a legal framework for contracts and concessions by the government for the exploitation of mineral resources. However, he also stressed that the conditions on which those concessions are granted have to be reviewed.

ON EXPLORATION

  • Ridgestone Mining Inc. completed the maiden drill program at its Rebeico project in Sonora. Under the program 1,674 m were drilled in ten holes. Most of the holes tested the geometry of gold-copper mineralization on the New Year Zone. Core samples are being submitted to the lab.
  • Vizsla Resources Corp. released drilling results from two holes on the Napoleon vein corridor at the Panuco project in Sinaloa. Highlighted core-length intercepts comprise: 8.2 m @ 739 gpt Ag, 11.06 gpt Au; 2.0 m @ 1,527 gpt Ag, 24.9 gpt Au on one hole; 2.5 m @ 454 gpt Ag, 9.20 gpt Au; 5.1 m @ 309 gpt Ag, 8.00 gpt Au, 2.22% Pb, 4.75 % Zn; 1.8 m @ 186 gpt Ag, 15.63 gpt Au, 1.12% Pb, 7.73% Zn in the second hole. True widths are estimated at between 46-66% of down hole lengths.
  • GoGold Resources Inc. informed on the results from three diamond drill holes at the Los Ricos South project. The holes drilled at the San Juan, Rascadero and East veins returned core length intervals of 27 m @ 0.09 gpt Au, 28 gpt Ag (including 4.0 m @ 0.45 gpt Au, 89 gpt Ag); 39.0 m @ 0.45 gpt Au, 117 gpt Ag (including 11.0 m @ 1.40 gpt Au, 319 gpt Ag); 3.2 m @ 0.15 gpt Au, 25 gpt Ag.
  • Tarachi Gold Corp. commenced fieldwork at its Tarachi project in Sonora. Tarachi’s geological crews have begun a two-week field program of geological mapping and rock sampling of known mineral occurrences to verify historical work programs. Historical work includes drill intercepts of 5.0 m @ 34.5 gtp Au, 3.0 m @ 24.3 gpt Au; 1.32 m @ 110 gpt Au. The 2,560 ha project includes the San Javier, Pretoria, Chivitas, Jabali, Juliana, Texana and Tarachi concessions.
  • Aztec Minerals Corp. identified multiple chargeability anomalies on a 3-dimensional IP-Resisitivity survey completed last year at its Cervantes property in Sonora. Each of the 6 porphyry prospects along the corridor exhibit strong porphyry alteration and Au (Cu) mineralization, while none of the Jacobo, Purisima West, Purisima East and Estrella targets have ever been drill-tested .
  • Tocvan Ventures Corp. released results from the soil sampling survey undertaken at its Pilar property in Sonora. The results include values of up to 8 gpt Au and 317 gpt Ag, and collectively have highlighted the East Zone as a new focus area..

ON MINING

  • VanGold Mining Corp. plans to begin clearing the El Pinguico shaft at its El Pinguico project in Guanajuato. The mucking of the shaft will allow the company to sample the lower part of the old workings infill, which on surface averaged 1.75 gpt Au, 183 gpt Ag. It will also allow the inspection of underground drifts for extracting the mineralized material, and check on past producing high-grade stopes.

ON FINANCING

  • Southern Silver Exploration Corp. plans a fully marketed private placement aiming to gross proceeds for a minimum of C$7 M. The company entered into a definitive agreement with Electrum Global Holdings L.P. to acquire Electrum’s 60% ownership interest in Southern Silver Holdings Ltd. for current and future cash and share payments totaling US$15.0 M (Cerro Las Minitas, Durango).
  • Aura Minerals Inc. announced its board of directors approved a dividend policy (Aranzazu, Zacatecas).
  • First Mexican Gold Corp. granted 2.5 M options to directors, officers and consultants (Hilda, Sonora).
  • Orex Minerals Inc. closed the first tranche of its non-brokered private placement, for gross proceeds of $989 K (Sandra-previously Sandra Escobar-, Durango).
  • Apollo Gold Corp. is conducting a non-brokered placement aiming to raise up to $5 M in gross proceeds (Eztzatlan, Jalisco).
  • Mc Ewen Mining Inc. announced the refinancing of its $50 M senior secured term loan facility. “As part of the refinancing, Sprott Private Resource Lending II (Collector), LP has replaced Royal Capital Management Corp. as a lender and the administrative agent for the Term Loan; and Evanachan Limited, a corporation wholly-owned by Rob McEwen, remains a lender….. the maturity date of the Term Loan has been extended by two years to August 31, 2023” (El Gallo, Sinaloa).

ON RESOURCES AND DEVELOPMENT

  • GR Silver Mining Ltd. Released drill results from historic holes at its Plomosas project in Sinaloa. These high-grade silver intercepts are outside the previously mined Pb-Zn-Ag-Au ore of the Plomosas mine area. Some of the highlighted true width (tw) intercepts comprise: 14.6 m @ 46 gpt Ag, 1.0 gpt Au, 1.7% Pb, 2.2% Zn; 5.4 m @ 326 gpt Ag, 1.9 gpt Au, 0.7% Pb, 1.2% Zn (including 1.9 m @ 900 gpt Ag, 1.9 gpt Au, 1.9% Pb, 3.2% Zn); 2.1 m @ 349 gpt Ag, 0.4 gpt Au, 2.3% Pb, 1.3% Zn); 2.7 m @ 1,469 gpt Ag, 0.5 gpt Au, 2.2% Pb, 3.2% Zn; 17.4 m @ 4 gpt Ag, 3.6 gpt Au; 2.2 m @ 398 gpt Ag, 0.3% Pb, 0.7% Zn; 32.8 m @ 32 gpt Ag, 0.9 gpt Au; 9.8 m @ 28 gpt Ag, 0.7 gpt Au, 4.2% Pb, 0.9% Zn; 13 m @ 13 gpt Ag, 2.8 gpt Au, 0.5% Pb, 1.4% Zn; 11.7 m @ 8 gpt Ag, 1.7 gpt Au, 0.4% Pb, 0.7% Zn.
  • Magna Gold Corp. filed an independent technical report for the San Francisco Gold project in Sonora.
  • SilverCrest Metals Inc. continues activities at its Las Chispas project in Sonora. A fully confined camp for 160 persons has been built at the site. All personnel is tested for COVID-19, and transported to the project once the negative results are received. Currently eight rigs are operating on the H2 program focusing on the high-grade resource expansion at the veins Babicanora (SE, NE, deep), Babi Sur (SE to depth), Babi Vista (all directions), Babicanora Norte (SE, NW, deep), Las Chispas (SE to depth), Giovanni (SE to depth), William Tell (all directions), and Varela (all directions). “Underground development has resumed, with a target of 500 metres per month by Q3, 2020, under confined camp conditions. The first ventilation raise in the Babicanora area has been completed. “. The feasibility study is progressing.

 

ON DEALS AND CORPORATE ISSUES

  • Argonaut Gold Inc. and Alio Gold Inc. announced the receipt of the clearance decision from the Comisión Federal de Competencia Económica (COFECE) with respect to the pending merger between Argonaut Gold and Alio Gold. This approval “was the final government agency approval required before completing the merger, which is anticipated to occur between June 29, 2020 and July 3, 2020” (El Castillo, Durango; Ana Paula, Guerrero).
  • Riverside Resources Inc. announced the continuation of the exploration agreement with BHP Exploration Chile SpA for the funding of generative copper exploration in the copper producing belt of Sonora. “BHP will be providing Riverside with US$720,000 to commence the first half of the second year of the Program to continue to grow the portfolio of copper projects which is an increase of US$220,000 from the initial plan ”.
  • Southern Silver Exploration Corp. entered into a definitive agreement with Electrum Global Holdings L.P. to acquire Electrum’s 60% ownership interest in Southern Silver Holdings Ltd. for current and future cash and share payments totaling US$15.0 M to gain 100% interest in the Cerro Las Minitas project, in Durango. Payments include US$5M in cash and US$2 M in shares by September 2020 (less credit for deposit of C$1.35 M paid in June 2020), US$2 M in cash and US$2 M in shares six months from closing and US$2 M in cash and US$2 M in shares one year from closing Cerro Las Minitas, Durango).
  • Candente Gold Corp. mobilized a team for the due diligence process on its acquisition process from Magellan Acquisition Corp. of the San Dieguito de Arriba processing plant and the El Dorado project in Nayarit. The Eldorado epithermal vein trend has been traced for 3.5 km along strike, hosting multiple mineralized zones, including distinct high-grade veins and lower grade bulk tonnage stockwork zones extending over tens of meters in width in both the hanging wall and footwall of the vein system.
  • Riverside Resources Inc. entered into a definitive option agreement with Minera Hochschild de Mexico S.A. de C.V. for Riverside’s Los Cuarentas project in Sonora. Hochschild is to pay Riverside US$90 K on the signing of the agreement and invest US$8 M over four years in the property to earn 51%, upon which it can elect to earn an additional 24% by spending a further $3 M and producing a feasibility study. Upon completing the second phase earn-in, Riverside will have the option to sell its interest for US$20 M, while retaining a 1% NSR.
  • Apollo Gold Corp. entered into a non-binding letter of intent (LOI) with First Majestic Silver Corp. for a three-year earn-in option to acquire First Majestic’s “Jalisco Group of Properties”. Under the terms of the agreement Apollo will pay $250 K and issue 4.29 M shares and 1.5 M warrants on closing of the definitive agreement. A further $200 K and 1 M shares a year from closing and $300 K and 1 M shares two years from the closing date. Apollo commits to spend at least $1.25 M on the properties within 36 months of closing. The properties comprise 5,240 ha of mining concessions which include the Etzatlan, Ampora, La Calabaza, Piedra and Bola mines.

ON SOCIAL RESPONSIBILITY

  • Peñasquito donated medical supplies in the fight against Coronavirus to the IMSS Rural Hospital number 12 in Concepción del Oro, Zacatecas.
  • Esperanza Silver de Mexico repaired the water supply equipment supplying the 2,500 inhabitants of San Agustín de Tetlama community in Morelos.

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: Epithermal quartz-graphite vein, Hermosillo District, Sonora, Sonora. Picture by Jorge Cirett.

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Magellan Gold Corporation Announces Agreements to Enhance Balance Sheet and Shareholder Update

Magellan Gold Corporation_081019_nr

Reno, NV —- Magellan Gold Corporation (OTCQB:MAGE) (“Magellan” or the “Company”) today announced agreements effective September 30, 2019 (the “Agreements”) with its primary secured creditors and largest shareholder to convert an aggregate of $2.45 million of outstanding debt obligations (including a secured line of credit, outstanding promissory notes and advances) into a newly-created series of Preferred Shares of the Company (“Preferred Shares”). The Preferred Shares will carry a $2.45 million liquidation preference, subject to adjustments, be convertible into common stock at $1.00 per share and bear a 10% annual dividend payable in kind at the option of the Company. The Agreements release and reduce liens on certain assets of the Company and convert portions of both its secured and unsecured debt holdings to Preferred Shares in order enhance the balance sheet and facilitate new financing arrangements.

The Mining and Exploration News in Mexico: Highlights on the Fourth Week of July, 2019

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By Jorge Cirett

During the 30th week of the year (July 22nd to July 28th, 2019), at least 29 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, the Chihuahua government announced the Los Gatos mine is about to start production in the municipality of Satevó, and stated that the mining industry is of uttermost importance in the State, with 44 companies (80% Canadian) providing 12,300 well-paid jobs. ON EXPLORATION, In Sonora, Evrim released drill results from its Sarape project. ON MINING, Excellon, Mexus Gold and Great Panther presented production or financial results. Azure commenced open-pit mining at its Oposura project in Sonora. ON FINANCING, In a great week for the resource companies sector, Impact Silver, Golden Minerals, Americas Silver, SilverCrest Metals, Mako Mining, Southern Silver, Avino Silver, Discovery Metals and Oroco announced financing rounds for combined tens of millions of dollars, with several of those placements having been increased after the opening. Silver One Resources granted options to its personnel and consultants. Defiance Silver entered into a $200 K loan with one of its officers. Mexus Gold US paid a $105 K loan. Capstone Mining extended and amended its US$300 million corporate revolving credit facility.  ON RESOURCES AND DEVELOPMENT, Avino Silver released results from holes previously drilled testing the Avino system stockwork hanging-wall. GoGold released results from four more holes at its Los Ricos project in Jalisco. ON DEALS AND CORPORATE ISSUES, Prize Mining intends to change its name to Boundary Gold and Copper Mining. One World Lithium issued a technical clarification on its previous press release on drilling at its Salar del Diablo project in Baja California. Discovery Metals received conditional approval for the plan of arrangement with Levon Resources for the combination of its businesses, and Levon shareholders approved the said plan of arrangement.

ON MEXICO ISSUES

  • The Secretariat on Innovation and economic Development of Chihuahua announced that a new mining project is about to start operations in the state: Los Gatos, in San Jose del Sitio, Satevó, with a US$316 M investment by Sunshine Silver and Dowa Holdings Co. Ltd. from Japan, that is to create more than 350 jobs. Other mining operations in the state include Pan American Silver’s Dolores mine in Madera, where 850 persons work, and Coeur’s Palmarejo mine with 800 workers. Chihuahua has 14 big mining operations, with 44 companies exploring in the state (80% Canadian companies) that generate 12,300 direct jobs with salaries that are 190% above the State average.

ON EXPLORATION

  • Evrim Resources Corp. released drill results from the 2019 maiden drill program at the Sarape project in Sonora. The 2,390 m ten hole program covered a 380 m strike length along the Sarape (6 km long), La Nune and Chiltepin veins. Highlighted results include 0.25 m @ 1.48 gpt Au, 20 gpt Ag; 8.47 m @ 0.33 gpt Au, 8 gpt Ag; 7.55 m @ 0.19 gpt Au, 11 gpt Ag; 24.68 m @ 0.18 gpt Au, 9 gpt Ag (including 1.4 m @ 0.55 gpt Au, 31 gpt Ag); 1.47 m @ 0.31 gpt Au, 21 gpt Ag; 1.46 m @ 0.80 gpt Au, 34 gpt Ag; 3.15 m @ 0.26 gpt Au, 10 gpt Ag; 11.57 m @ 0.22 gpt Au, 5 gpt Ag.

ON MINING

  • Excellon Resources Inc. announced second quarter 2019 production results from its Platosa mine, Durango. At the site 18,717 tonnes were mined, 19,964 tonnes processed @ 514 gpt Ag, 4.97% Pb, 7.40% Zn, recovering 90.6% Ag, 83.6% Pb, 79.6% Zn to produce 276.8 K Oz Ag, 1.76 M Lb Pb, 2.5 M Lb Zn. “.. the operation accessed multiple ore faces in the Rodilla, Pierna, 623 and Guadalupe South mantos. Operational efficiencies implemented in previous quarters continued to deliver results with lower dilution, higher grades and steady production rates”.
  • Mexus Gold US. informed that leaching from its 2,500 ton leach pad is returning solution to the holding pond at its Santa Elena mine in Sonora (not to mistake for First Majestic’s Santa Elena mine, also in Sonora). “It is expected to accumulate 5 to 7 oz. the first week with leaching continuing until the return solution stabilizes. Mexus will be adding new ore to the pad with the Merrill Crow gold recovery system running weekly to keep up with production.”
  • Great Panther Mining Ltd. reported financial results for the second quarter 2019. Most of the report is focused on the operation of the company’s recently acquired Tucano mine in Brazil, and not much is disclosed about its Mexican operations, other than the production of 10,023 Oz AuEq. At the end of the period cash and short-term deposits were $9.9 M (Topia, Durango).
  • Capstone Mining Corp. extended and amended its US$300 million corporate revolving credit facility with Canadian Imperial Bank of Commerce (CBIC) and Bank of Nova Scotia. “In the quarter ending June 30, 2019, Capstone paid an additional $20 million towards long-term debt , bringing the total deleveraging payments to $129 million over the last ten fiscal quarters, and the total long-term debt balance to $199.9 million” (Cozamin, Zacatecas).
  • Azure Minerals Ltd. commenced mining at its Oposura project in Sonora. Ore grading 10-15% Pb-Zn is being open-pit mined at a rate of 1,500-3,000 tonnes per month on the East-Zone, where all material being mined is classified as indicated mineral resources. “Processing of this ore is expected to commence in September under a toll treatment agreement with a third-party sulphide flotation processing plant”.

ON FINANCING

  • Silver One Resources Inc. granted 2.43 M stock options to its directors, officers, consultants and advisors (La Frazada, Nayarit).
  • Impact Silver Corp. amended the terms of its ongoing non-brokered private placement financing due to strong interest. Under the actual terms, Impact has closed a first tranche for gross proceeds of $1.235 M and expects to close a second tranche for additional $714 K. Under the modified terms a third tranche has been added seeking to raise additional $3 M (Zacualpan District, Estado de Mexico).
  • Impact Silver Corp. completed the second tranche of the previously announced non-brokered private placement, receiving aggregate gross proceeds of $714.3 K (Zacualpan District, Estado de Mexico).
  • Golden Minerals Co. closed the direct offering previously announced, for gross proceeds $2.25 M (Rodeo, Durango).
  • Americas Silver Corp. announced that Eric Sprott purchased shares of the company for a total of US$10 M in a non-brokered private placement, increasing its ownership to above 8% (Cosalá, Sinaloa).
  • SilverCrest Metals Inc. entered into an agreement with a syndicate of underwriters for the purchase of shares with gross proceeds of C$22.0 M, with the company paying the underwriters a cash commission of up to 5% of the gross proceeds. SSR Mining elected to exercise its right to maintain its pro rata ownership of up to 9.9% (Las Chispas, Sonora).
  • Defiance Silver Corp. “entered into a loan agreement with an entity controlled by one of its officers and directors which allows Defiance to borrow up to $200,000. The Loan is unsecured and will bear interest at the rate of 1% per month, accrued daily. It will mature on July 22, 2020”(San Acacio, Zacatecas).
  • Mako Mining Corp. announced the completion of the previously announced rights offering, raising total aggregate gross proceeds of $27 M.
  • Mexus Gold US. informed that the company has satisfied a $105 K loan commitment on time (Santa Elena, Sonora).
  • Southern Silver Exploration Corp. announced its previously announced $2M non-brokered private placement has been increased to $3 M (Cerro Las Minitas, Durango).
  • Avino Silver & Gold Mines Ltd. entered into an agreement with Cantor Fitzgerald Canada Corp. as sole underwriter to the purchase of common shares of the company for gross proceeds of $4M and additional flow-through common shares for additional gross proceeds of $2 M (Avino, Durango).
  • Discovery Metals Corp. closed its non-brokered private placement, raising $ 9.0 M. Mr Eric Sprott acquired 17.56 M shares, and as a result he’s now the owner of 19.9% of Discovery’s issued and outstanding common shares. Finders’ fees of $17,500 were paid (Puerto Rico, Coahuila; Cordero, Chihuahua).
  • Oroco Resource Corp. announced a non-brokered private placement to raise $1.35 M (Santo Tomas, Sinaloa).
  • Americas Silver Corp. closed its previously announced non-brokered private placement with Mr. Eric Sprott, raising gross proceeds of US$10 M.
  • Capstone Mining Corp. extended and amended its US$300 million corporate revolving credit facility with Canadian Imperial Bank of Commerce (CBIC) and Bank of Nova Scotia. “In the quarter ending June 30, 2019, Capstone paid an additional $20 million towards long-term debt , bringing the total deleveraging payments to $129 million over the last ten fiscal quarters, and the total long-term debt balance to $199.9 million” (Cozamin, Zacatecas).

ON RESOURCES AND DEVELOPMENT

  • Avino Silver & Gold Mines Ltd. released results from a sampling campaign comprising 52 recent and historic holes that were previously drilled on the hanging-wall of the Avino stockwork system of its Avino property in Durango. Some of the results released: 3.05 m @ 1.31 gpt Au, 24 gpt Ag, 0.02% Cu; 4.30 m @ 1.47 gpt Au, 71 gpt Ag, 0.49% Cu; 2.20 m @ 5.00 gpt Au, 120 gpt Ag, 0.13% Cu; 16.00 m @ 2.06 gpt Au, 67 gpt Ag, 0.69% Cu; 2.95 m @ 1.50 gpt Au, 31 gpt Ag, 0.47% Cu; 1.25 m @ 3.27 gpt Au, 10 gpt Ag, 0.11% Cu; 2.00 m @ 15.60 gpt Au, 146 gpt Ag, 0.28% Cu; 4.10 m @ 3.82 gpt Au, 103 gpt Ag, 0.23% Cu; 5.45 m @ 1.26 gpt Au, 133 gpt Ag, 0.07% Cu; 9.50 m @ 1.82 gpt Au, 119 gpt Ag, 0.50% Cu; 5.95 m @ 2.29 gpt Au, 232 gpt Ag, 0.30% Cu; 4.90 m @ 5.36 gpt Au, 26 gpt Ag, 0.07% Cu; 8.43 m @ 2.16 gpt Au, 21 gpt Ag, 0.15% Cu.
  • GoGold Resources Inc. delivered assays results from four more holes at its Los Ricos project in Jalisco. Highlighted intervals comprise: 21.4 m @ 0.81 gpt Au, 170 gpt Ag (including 12.9 m @ 1.24 gpt Au, 262 gpt Ag which includes 7.5 m @ 1.78 gpt Au, 342 gpt Ag) in one hole; 4.5 m @ 1.50 gpt Au, 197 gpt Ag, then stope, then 13.8 m @ 0.63 gpt Au, 86 gpt Ag) in another hole; 14.9 m @ 1.78 gpt Au, 106 gpt Ag in a third one and 7.5 m @ 0.09 gpt Au, 18 gpt Ag, then 2.2 m of open stope, then 15.6 m @ 1.15 gpt Au, 113 gpt Ag (including 6.5 m @ 2.38 gpt Au, 236 gpt Ag. The first hole of this release is the deepest so far to intersect the Los Ricos vein.

ON DEALS AND CORPORATE ISSUES

  • Prize Mining Corp. announced its shareholders will be asked in August 22 to approve the continuation of the company into the jurisdiction of Britsh Columbia, the consolidation of its shares on a 5 to one basis and the name change of the company to Boundary Gold and Copper Mining Ltd. (Manto Negro, Coahuila).
  • Discovery Metals Inc. has received conditional approval from the TSX Venture Exchange to complete the transaction with Levon Resources Ltd. for the combination of their businesses (Puerto Rico, Coahuila; Cordero, Chihuahua).
  • One World Lithium Inc. issued a technical clarification as a result of a review by the British Columbia Securities Commission about a previous news release on drilling results at its Salar del Diablo project in Baja California. The company had three distinct target levels at several zones, but drilling encountered harsh conditions due to the natural variability of the unconsolidated basin sediments. “Dense mudstones were interlayered with unconsolidated, water- and brinebearing sands. Drill bits and related equipment were commonly plugged by the mudstones, requiring multiple trips out of the hole to clean and unplug the drill bits. Unconsolidated sands poured or sloughed into the drill bore, requiring substantial time to stabilize the drill hole before drilling to additional depths. Some measure of control was established by drilling and setting casing at deeper levels, but high amounts of water impeded the progress of the drill…..”
  •  Discovery Metals Inc. announced a majority of Levon Resource Ltd’s shareholders approved the plan of arrangement for the combination of businesses (Puerto Rico, Coahuila, Cordero, Chihuahua).

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: sheeted quartz veinlets and minor stockwork development in metamorphic rocks of a project in Oaxaca. Picture by Jorge Cirett

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Silver One Announces Increase of Private Placement Financing

silver ones announces increase of private placement

Vancouver, British Columbia–(Newsfile Corp. -January 3, 2019) -Silver One Resources Inc. (TSXV: SVE) (OTC Pink: SLVRF) (FSE: BRK1) (“Silver One” or the “Company”) is pleased to announce that it has increased its previously announce private placement financing (see news release dated December 27, 2018) from 3,066,667 units of the Company (“Units”) to 4,108,333 Units at a price of C$0.15 per Unit for gross proceeds of up to C$616,250 Each Unit will continue to consist of one common share (“Share”) in the capital of the Company and one-half of one share purchase warrant (each whole warrant being a “Warrant” of the Company). Each whole Warrant will entitle the holder to purchase one share at an exercise price of C$0.20 per share for a period of three years from the date of the issue of the Warrants.

Silver One Provides Highlights of 2018 Exploration andDevelopment

silver one provides highlights of 2018 exploration and development

Vancouver, British Columbia–(Newsfile Corp. – December 27, 2018) – Silver One Resources Inc. (TSXV: SVE) (OTC Pink:SLVRF) (FSE: BRK1) – (“Silver One” or the “Company”) is pleased to provide an overview of its exploration and developmentachievements in 2018 and outline expected milestones for 2019.

Highlights on the First Week of September, 2018. Mining and Exploration News in Mexico

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By Jorge Cirett

During the 36th week of the year (September 3rd to September 9th, 2018), at least 18 press releases were announced by companies working in Mexico. Prize Mining, Minaurum, Azure, and Kootenay released advances in exploration. Telson Mining released some clarifications to its operating Q2 2018 results. Prospero reported news on financing. Goldplay, Consolidated Zinc, Torex, Southern Silver, Impact Silver, Magellan Gold, and Aura Minerals reported on development of its properties. Golden Minerals, Sonoro and GoGold reported deals on properties or royalties. ON MEXICO ISSUES, AMLO announced cabinet posts in Economy, including the new Sub-secretary of Mining, Francisco Quiroga. The Mexican Core Shack now counts with displays from three properties in Chihuahua, two in Durango, two in Estado de Mexico, one in Guerrero and one in Puebla. ON EXPLORATION, In Sonora, Minaurum has resumed drilling at its Alamos Silver property. Azure reported high-grade surface results from its Oso Negro property and Kootenay released surface sampling results from its Malé project. In Coahuila Prize Mining announced a coming drill campaign on its Manto Negro project.  ON MINING Telson Mining presented some clarifications on its Q2 report, and some figures on production costs from the Campo Morado mine.  ON FINANCING, Prospero Silver announced a strategic investment by Fortuna Silver for US$270 K. ON RESOURCES AND DEVELOPMENT, Goldplay released results from its San Marcial project in Sinaloa. Consolidated Zinc is to start mining in Plomosas, Chihuahua. Torex presented an updated technical report and a new mine plan on its El Limon-Guajes property in Guerrero. Southern Silver presented assay results from drilling at its Cerro Las Minitas property in Durango. Impact Silver announced the discovery of a new ore shoot on its Zacualpan property in Estado de Mexico. Magellan is planning to mine on its El Dorado property in Nayarit. Aura Minerals filed a FS and technical report on the restarting of its Aranzazu mine in Zacatecas. ON DEALS AND CORPORATE ISSUES, Golden Minerals sold its remaining interest on the Celaya property in Guanajuato to The Electrum Group for US$3 M. Sonoro optioned an inner concession within its Cerro Caliche property for US$100 K in two payments. GoGold sold its 2% NSR on the Santa Gertrudis project in Sonora to Metalla Royalty.

ON MEXICO ISSUES

  • Andres Manuel Lopez Obrador (AMLO), the president elect in Mexico, announced cabinet posts within the Secretaría de Economía (Bureau of Economy) for its incoming government. Graciela Márquez, as Secretary, is to be supported by Luz Maria de la Mora in Subsecretaría de Comercio Exterior (Foreign Commerce), Ernesto Acevedo Hernández in Subsecretaria de Industria y Comercio (Industry and Commerce), and Francisco Quiroga, on charge of the Subsecretaría de Minería (Mining). Francisco Quiroga was director of International Planning for Grupo Villacero, and worked for a couple of years at Arcelor Mittal México. He has master degrees from Yale and New Zealand, with expertise in international metal markets, steel, commodities and mining, as well as anti-dumping practices and industry. The Mexican Core Shack added images of drill core from Almaden’s Ixtaca project in Puebla, at https://gambusinoprospector.com/mexican-core-shack/puebla/ixtaca/ . The Mexican Core Shack now displays three properties in Chihuahua, two in Durango, two in Estado de Mexico, one in Guerrero and one in Puebla.

ON EXPLORATION

  • Prize Mining Corp. commenced the phase II exploration program on its Manto Negro project in Coahuila. This phase will consist of 3,000 m of diamond drilling, “3D modeling of drill intersections and artisanal underground workings”, a GIS compilation and preliminary metallurgical test work. At El Granizo, “strong copper mineralization is exposed on surface for a strike length of 550 metres and dips moderately to the southwest. Mineralization is hosted in the San Marcos red-bed sandstone close to the contact with the overlying Cupido limestone”. At Pilar Grande drilling will test a 200 by 50 m area containing the underground workings.
  • Minaurum Gold Inc. has resumed drilling at the Alamos Silver project in Sonora. The 5,000 m (or greater) drill program is to focus in seven untested veins exposed at high structural levels in down-dropped blocks outside of the historic mining corridor. “One hole will test the Minas Nuevas vein at depth and a second hole will test the Púlpito and Cotera vein zone projections. Eight more holes are planned on targets on the completely virgin eastern side of the historic La Quintera – Promontorio vein zone, including the Tigre, Ana, and Amalia vein zones, and the breccia body located south of Amalia and Tigre; as well as the Promontorio Sur vein zone to the south of Promontorio vein. The drill program will be expanded as new targets are generated.”
  • Azure Minerals Ltd. reported high grade assays from surface sampling at its Oso Negro property in Sonora. The project comprises a 1,119 ha concession application and an adjoining 156 ha concession purchased for US$35 K. Both concessions contain epithermal mineralization like quartz veins and quartz stockworks in zones of strong alteration, with galena and sphalerite within the quartz veins, which can attain widths of up to 5 m and lengths of 800 m. Of 88 samples collected, 37 returned over 100 g/t Ag, including 9 samples over 1,000 g/t Ag, and a peak of 2,680 g/t Ag. Of 88 samples collected, 37 samples returned over 1.0 g/t Au, including 7 samples over 5.0 g/t Au and up to 100.5 g/t Au.
  • Kootenay Silver Inc. released additional high-grade sampling results on its Malé project in Sonora. Thirty three sample collected from old pits and small trenches returned 19 samples with values over 1.0 g/t Au, with the highest running 12.1, 17.0, 24.7 and 36.0 g/t Au. “The Malé gold project is a granitic-hosted gold dominant polymetallic vein and vein stockwork system covering an area of 1500 x 1500 meters with numerous showings highly anomalous in gold…..Mineralization occurs as narrow veins, veinlets and stockworks of quartz with or without sulphides within structures projecting in a dominant northeast trend and a secondary northwest trend”.

ON MINING

  • Telson Mining Corp. presented some clarifications to its Q2 2018 financial report (please see press release for details). The “Campo Morado Mine has achieved direct site costs for mining, milling and administration during Q2 of approximately US$56.6, US$51.6 and US$51.8 per tonne respectively for, April, May and June. These current direct site costs are approximately 36% lower than the estimated direct site costs of US$72.26 per tonne used for the same categories in Telson’s recently published independent Preliminary Economic Assessment and approximately 40% lower than the previous operator’s last year of production during 2014”.

ON FINANCING

  • Prospero Silver Corp. arranged a US$270 K strategic investment from Fortuna Silver Mines Inc. Fortuna currently owns 20.3% of Prospero current and outstanding shares, and this private placement is to take that proportion to 26.9%. The proceeds will be allocated to test the Bermudez project in Chihuahua with a 3-hole 1,500 m drill program.

ON RESOURCES AND DEVELOPMENT

  • Goldplay Exploration Ltd. disclosed additional results from sampling of the historical core drill holes completed in 2011 on the project San Marcial, in Sinaloa. Highlighted true width (TW) new results from two holes comprise 53.6 m @ 57 g/t Ag, 0.1% Pb, 0.4% Zn (including 5.6 m @ 253 g/t Ag, 0.2% Pb, 0.6% Zn); 46.5 m @ 57 g/t Ag, 0.3% Pb, 0.4% Zn (including 15.5 m @ 115 g/t Ag, 0.5% Pb, 0.7% Zn, same that include 3.25 m @ 411 g/t Ag, 1.9% Pb, 2.2% Zn).
  • Consolidated Zinc Ltd. is to start mining at its Plomosas project in Chihuahua. “The CZL Board has approved the development plan and mining will commence immediately with monthly receipts commencing mid October 2018”. CZL secured a finance package by way of convertible notes. The mined ore will be processed at Grupo Mexico’s plant in Santa Eulalia, Chihuahua, and the concentrate is to be sent to the same group’s smelter in San Luis Potosi. CZL “is confident that the first cashflow can be achieved for a capital cost less than US$500,000 and the C1 operating costs are expected to be less than US$0.50/lb Zinc after by-product credits”.
  • Torex Gold Resources Inc. completed an updated technical report that includes a life of mine plan (LOM) of nine years and an increased average gold production of 430 K Oz Au per year, from 2019 to 2023 at its Limón-Guajes mine in Guerrero.” The TR also contains an updated Media Luna Preliminary Economic Assessment (PEA), with an after-tax NPV (5%) of $582M, and an after-tax IRR of 27%”.  El Limon Guajes updated TR, Sept 20181
  • Southern Silver Exploration Corp. reported assay results from initial core drilling on the 12,000 m 2018 drill program at its Cerro Las Minitas property in Durango. Highlighted true width (TW) intervals comprise 15.1 m @ 280 g/t Ag, 0.18% Cu, 0.9% Pb, 0.1% Zn (including 4.4 m @ 598 g/t Ag, 0.4% Cu, 2.1% Pb, 0.1% Zn) on the Skarn Front deposit, and 0.6 m @ 79 g/t Ag, 0.4 g/t Au, 1.2% Cu, 0.1% Pb, 14.1% Zn; 2.0 m @ 88 g/t Ag, 0.3 g/t Au, 0.2% Cu, 1.1% Pb, 2.6% Zn in Las Victorias zone, which extend mineralization for over 100 m to the southeast.
  • Impact Silver Corp. announced the discovery of a new ore shoot on the Lipton vein of the Guadalupe mine at its Zacualpan property in Estado de Mexico. To date the new zone has been drilled over a length of 120 m and vertical distance of 80 m, remaining open in all directions. Some of the highlighted true width intervals comprise 10.57 m @ 201 g/t Ag, 0.13 g/t Au, 0.2% Pb, 0.5% Zn (including 4.18 m @ 381 g/t Au, 0.09 g/t Au, 0.4% Pb, 1.1% Zn); 7.74 m @ 466 g/t Ag, 0.13 g/t Au, 0.5% Pb, 1.1% Zn; 8.82 m @ 306 g/t Ag, 0.11 g/t Au, 0.2% Pb, 0.5% Zn; 1.53 m @ 240 g/t Ag, 0.04 g/t Au, 0.7% Pb, 2.5% Zn; 2.87 m @ 308 g/t Au, 0.19 g/t Au, 0.3% Pb, 0.4% Zn.
  • Magellan Gold Corp. is focused on advancing El Dorado project in Nayarit towards production, planning to truck the ore to the SDA mill for processing. “The drilled resource appears to be sufficient to support an underground mining operation for five years at a mining rate of 100 tonnes per day….”. Magellan is applying for the necessary environmental and blasting permits, as well as quotes for contract mining.
  • Aura Minerals Inc. filed the NI-43-101 Feasibility Study and Technical Report on the Aranzazu mine in Zacatecas.

ON DEALS AND CORPORATE ISSUES

  • Golden Minerals Co. has sold its remaining interest on the Celaya property in Guanajuato, to The Electrum Group LLC. Golden Minerals is to receive a payment of US$3.0 M for selling 100% of its remaining mining concessions and related interests in the Celaya project located in Guanajuato.
  • Sonoro Metals Corp. optioned from a private owner the 9 ha “El Colorado” mining concession, within its Cerro Caliche project in Sonora. “The Option Agreement provides for Sonoro to acquire a 100% interest in El Colorado for total consideration to the Vendor of US$100,000, of which US$50,000 has been paid and the balance due in 6 months”. Seven thorough-going veins surrounded by quartz sotckwork areas and sheeted quartz veinlet zones present limited mining evidenced by tunnels, pits and trenches.
  • Metalla Royalty & Streaming Ltd. entered with GoGold Resources Inc. into an agreement to purchase a 2% net smelter return royalty on the Santa Gertrudis property in Sonora, for US$12 M in cash. The agreement is subject to a right of first refusal held by the owner of the project, Agnico Eagle Mines Ltd., right that has to be exercised with 45 days.

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, argillitized volcanic rocks above the famous Vizcaína vein in the Pachuca District, Hidalgo. Picture by Jorge Cirett.

Magellan Provides Update on El Dorado Gold-Silver Project

Magellan Provides Update on El Dorado Gold-Silver Project _ Markets Insider

Magellan Gold Corporation (OTCQB: MAGE) (Magellan” or “the Company“), a U.S. based mining and exploration enterprise focused on silver and gold, today provided an update on the Company’s recently acquired El Dorado Gold-Silver Project, Nayarit, Mexico. The Company also announced it has engaged TEN Associates, LLC for investor relation services.