During the 22nd week of the year (May 30th to June 5st, 2023), at least 11 press releases were announced by companies working in Mexico, with three reporting resources and developments of their properties, two communicating production and financial results, two disclosing deals and corporate issues, two informing on exploration results, one announcing financing issues, and one commenting on Mexican issues. ON MEXICO ISSUES, GoGold and Vizsla reported the best drilling intercepts in Mexico on the first week of June, 2023. ON EXPLORATION, In Sonora, Prismo commenced a trenching program at its Los Pavitos project. In Oaxaca, Vortex completed the field work for the environmental baseline study, and advanced surface geological investigations at its Zaachila project. ON MINING, Bear Creek reported Q1, 2023 production results from its Mercedes mine in Sonora. Minera Alamos reported Q1, 2023 selected financial results. ON FINANCING, Minera Alamos announced a USD $25M construction financing package termsheet executed for its Cerro de Oro Gold Project, Zacatecas. ON RESOURCES AND DEVELOPMENT, GoGold announced additional drilling results from Los Ricos South, within the Eagle Deposit in Jalisco. Vizsla reported results from five holes drilled on the recently discovered La Luisa Vein at its Panuco property in Sinaloa. Zacatecas Silver increased its Inferred Mineral Resource Estimate at the Panuco South and North Deposits within its Zacatecas property in Zacatecas State. ON DEALS AND CORPORATE ISSUES, Chesapeake granted stock options to its former Vice President Investor Relations & Corporate Development (Metates project, Durango). Golden Tag received approval from Mexico´s antitrust agency, the Comisión Federal de Competencia Económica (COFECE) on May 25, 2023, for the previously announced acquisition of the La Parrilla Silver Mine Complex in Durango. ON SOCIAL RESPONSIBILITY, no relevant news.
ON MEXICO ISSUE
GoGold Resources Inc., and Vizsla Silver Corp., reported the best drilling intercepts in Mexico on the first week of June, 2023. Details are shown in the table below:
ON EXPLORATION
Prismo Metals Inc., commenced a trenching program at its Los Pavitos project in Sonora to better define the orientation and full width of the mineralized structures prior to starting the drill campaign. Samples collected will be sent to the lab for analysis and results will be released by the middle of June, 2023.
Vortex Metals Inc., completed the field work for the environmental baseline study, and advanced surface geological investigations at its Zaachila project in Oaxaca. The field work commenced on May 16th and included biological studies and surface geological work. “This information is foundational in the preparation of the Environmental Impact Statement that SEMARNAT requires for the evaluation and approval of exploration drilling”. The results of this study will be an integral part of the Environmental Impact Assessment that Vortex Metals will submit in the coming weeks, bringing us one step closer to advancing the Zaachila copper project for mineral exploration of the previously identified significant anomalous copper mineralization.”
ON MINING
Bear Creek Mining Corporation reported Q1, 2023 production results from its Mercedes mine in Sonora. The company mined 133,621 tonnes with an average grade of 2.93 g/t Au and processed 134,487 tonnes with an average grade of 2.91 g/t Au and metallurgical recovery of 95.96% to produce 12,038 Oz Au. The company also reported 9,304 Oz Au sold and 3,182 Oz Au streamed. Cash and AISC per Oz Au sold and streamed were USD $1,386 and USD $ 1,670 respectively. Bear Creek recorded revenue of USD $24.3M from the sale of gold and silver; cost of goods sold of USD $14.4M; depletion and amortization of USD $11.2M; and gross loss of USD $1.3M.
Minera Alamos Inc., reported Q1, 2023 selected financial results. It reported revenues of CAD $6.78M; cost of goods sold of CAD $2.25M; net income of CAD $1.48M; cash and cash equivalents of CAD $10.2M; and working capital of CAD $19.89M.
ON FINANCING
Minera Alamos Inc., announced a USD $25M construction financing package termsheet executed for its Cerro de Oro Gold Project, Zacatecas. The Company has signed a termsheet for a USD $15M Loan Facility and USD $10M Royalty that is expected to close on or around July 14th upon signing of definitive documentation as well as board and regulatory approvals.
ON RESOURCES AND DEVELOPMENT
GoGold Resources Inc., announced additional drilling results from Los Ricos South, within the Eagle Deposit in Jalisco. Drilling highlights include hole LRGAG-22-164 with 3.21 g/t Au and 33 g/t Ag (3.64 g/t AuEq or 273 g/t AgEq) over 22.1m, including 20.21 g/t Au and 87 g/t Ag (21.37 g/t AuEq or 1,603 g/t AgEq) over 3.2m; hole LRGAG-22-165 with 4.61 g/t Au and 780 g/t Ag (15.01 g/t AuEq or 1,126 g/t AgEq) over 50m, including 22.9 g/t Au and 4,617 g/t Ag (84.45 g/t AuEq or 6,334 g/t AgEq) over 7.8m, including 59.98 g/t Au and 11,858 g/t Ag (218 g/t AuEq or 16,357 g/t AgEq) over 2.9m, including 201 g/t Au and 31,747 g/t Ag (624.29 g/t AuEq or 46,822 g/t AgEq) over 0.8m; hole LRGAG-22-172 with 3.27 g/t Au and 124 g/t Ag (4.92 g/t AuEq or 369 g/t AgEq) over 53.8m, including 8.09 g/t Au and 193 g/t Ag (10.67 g/t AuEq or 800 g/t AgEq) over 19.4m, including 13.72 g/t Au and 289 g/t Ag (17.57 g/t AuEq or 1,318 g/t AgEq) over 5.2m; hole LRGAG-22-173 with 3.67 g/t Au and 282 g/t Ag (7.43 g/t AuEq or 557 g/t AgEq) over 40.5m, including 5.35 g/t Au and 1,267 g/t Ag (22.24 g/t AuEq or 1,668 g/t AgEq) over 4.1m, including 8.9 g/t Au and 1,879 g/t Ag (33.95 g/t AuEq or 2,546 g/t AgEq) over 1.4m, including 11.8 g/t Au and 1,430 g/t Ag (30.87 g/t AuEq or 2,315 g/t AgEq) over 1m; hole LRGAG-22-176 with 2.54 g/t Au and 120 g/t Ag (4.14 g/t AuEq or 310 g/t AgEq) over 15.9m, including 9.03 g/t Au and 627 g/t Ag (17.4 g/t AuEq or 1,305 g/t AgEq) over 1.6m; and hole LRGAG-22-177 with 1.21 g/t Au and 145 g/t Ag (3.15 g/t AuEq or 236 g/t AgEq) over 31.7m, including 3.03 g/t Au and 393 g/t Ag (8.27 g/t AuEq or 620 g/t AgEq) over 9.8m, including 10.15 g/t Au and 1,357 g/t Ag (28.25 g/t AuEq or 2,118 g/t AgEq) over 2.3m. “The Eagle Deposit adjoins the Main Deposit and represents a northern extension of the previously defined Mineral Resource Estimate in the Los Ricos South Preliminary Economic Assessment (PEA).”
Vizsla Silver Corp., reported results from five holes drilled on the recently discovered La Luisa Vein at its Panuco property in Sinaloa. Drilling highlights (true widths reported) include hole NP-23-362 with 50 g/t Ag, 0.41 g/t Au, 0.5% Pb, and 2% Zn (163 g/t AgEq) over 0.8m, plus 372 g/t Ag, 5.82 g/t Au, 2.1% Pb, and 3.1% Zn (916 g/t AgEq) over 3.05m, including 1,418 g/t Ag, 21.54 g/t Au, 5.3% Pb, and 6.4% Zn (3,162 g/t AgEq) over 0.59m, plus 93 g/t Ag, 2.91 g/t Au, 1.4% Pb, and 2.4% Zn (410 g/t AgEq) over 5.2m, including 283 g/t Ag, 7.4 g/t Au, 5% Pb, and 3.9% Zn (1,054 g/t AgEq) over 0.76m; hole NP-23-373 with 69 g/t Ag, 3.62 g/t Au, 0.6% Pb, and 2.7% Zn (426 g/t AgEq) over 4.30m, including 210 g/t Ag, 8.09 g/t Au, 1.2% Pb, and 7% Zn (1,032 g/t AgEq) over 0.77m; and hole NP-22-375 with 593 g/t Ag, 0.78 g/t Au, 2% Pb, and 1.9% Zn (734 /t AgEq) over 1.4m. “The new drill results expand the high-grade footprint at La Luisa to 350m long by 450m down dip. Additionally, surface mapping and sampling has identified a near surface exploration target located ~600m along strike to the northwest”.
Zacatecas Silver Corp., increased by 25% its Inferred Mineral Resource Estimate at the Panuco South and North Deposits within its Zacatecas property in Zacatecas State. Updated silver Inferred Mineral Resource now consists of 0.37M tonnes of 236 g/t Ag and 0.24 g/t Au (255 g/t AgEq) for a total of 2.8M Oz Ag and 2.7K Oz Au (3M Oz AgEq) at Panuco North, and 3.04M tonnes of 166 g/t Ag and 0.17 g/t Au (179 g/t AgEq) for a total of 16.2M Oz Ag and 16.4K Oz Au (17.5M Oz AgEq) at Panuco South. Inferred Mineral Resource in both deposits are 3.41M tonnes of 173 g/t Ag and 0.18 g/t Au (187 g/t AgEq) for a total of 19M Oz Ag and 19.2K Oz Au (20.5M Oz AgEq).
ON DEALS AND CORPORATE ISSUES
Chesapeake Gold Corp., granted stock options to its former Vice President Investor Relations & Corporate Development, to purchase an aggregate of 100K common shares of the company at an exercise price of CAD $1.70 per share for a five-year term expiring May 29, 2028. The options will vest and be exercisable on the basis of 25% annually, commencing May 29, 2024, the first anniversary of the date of the grant (Metates project, Durango).
Golden Tag Resources Ltd., received approval from Mexico´s antitrust agency, the Comisión Federal de Competencia Económica (COFECE) on May 25, 2023, for the previously announced acquisition of the La Parrilla Silver Mine Complex in Durango. Golden Tag and First Majestic Silver Corp. have amended the Asset Purchase Agreement dated December 7, 2022 to reduce Golden Tag’s minimum required financing to $7.2M from $9M.
ON SOCIAL RESPONSIBILITY
No relevant news.
Content like what you have just read can be seen at https://gambusinoprospector.com/ and at LinkedIn’s Mexico Mineral Exploration Group.
On the picture above, flow banded rhyolite in a prospect in Durango, Mexico. Photo by Miguel A Heredia.
Two companies published drilling results from projects located in Mexico. GoGold’s had spectacular assays in gold and silver, with the best hole reporting 50 m grading 4.61 gpt Au, 780 gpt Ag, for 231 g*m Au, 39,010 g*m Ag. These intercepts are from holes in the Eagle zone, an area the company started testing on the second half of 2022. Vizsla’s Panuco project results are from the recently discovered La Luisa vein, located 700 m from the Napoleon resource area. The new results expand the high-grade footprint at La Luisa to 350 m long by 450 m along dip. Both properties structurally controlled low to intermediate sulfidation epithermal mineralization.
Five companies released drilling assays from projects in Mexico during the week. The most impressive results are the gold intercepts by Heliostar Metals at the Ana Paula project in Guerrero. The company reported results from holes aiming to better define the high-grade core of the deposit, which will aid in the planning of an underground mine. The deposit sits at the northern end of the Guerrero Gold Belt, and is one of those beasts hard to put in a cage, as it presents several mineralization styles. The Morelos platform sediments are intruded by a plagioclase-biotite porphyry that produced local hornfelsification and skarnification of the sedimentary rocks. Pyrite, marcasite and arsenopyrite are present as veinlets, stockworks and disseminations in these altered rocks, in breccias, and as narrow semi-massive sulfide replacements at intrusive contacts. A late low sulfidation epithermal veining stage with visible gold is also present in the deposit.
Discovery Silver’s Cordero project in Chihuaha is also one of these deposits not easily cajoled to only a mineralization style, with high grade intermediate sulfidation epithermal veins cutting through (overprinting?) disseminated Ag-Pb-Zn mineralization (earlier?) related to the intrusion of felsic laccoliths, dikes and sills into a calcareous sedimentary sequence, with skarn and carbonate replacement mineralization dominating parts of the deposit. A very broad classification would put Cordero as polymetallic intrusive related mineralization.
Prime Mining’s Los Reyes project and GR Silver Mining’s Plomosas property, both in Sinaloa, are intermediate sulfidation epithermal systems with a strong structural component. Avino Silver & Gold’s is finding stronger copper grades 800 m below the surface on the Avino vein, and is considering the probable presence of a porphyry copper setting at depth.
Quartz blade texture in a low-sulphidation epithermal vein
By Miguel A Heredia
During the 20th week of the year (May 17th to May 21st, 2023), at least 16 press releases were announced by companies working in Mexico, with four reporting resources and developments of their properties, four communicating production and financial results, three disclosing deals and corporate issues, two announcing financing issues, two informing on exploration results, and one commenting on Mexican issues. ON MEXICO ISSUES, Alamos Gold and Guanajuato Silver reported the best drilling intercepts in Mexico on the third week of May, 2023. ON EXPLORATION, In Sonora, Colibri reported a strong soil gas hydrocarbon gold anomaly at its Evelyn-Plomo project. In Oaxaca, Vortex initiated environmental and surface geological studies at its Zaachila project. ON MINING, Americas Gold and Silver reported Q1, 2023 production and financial results. Sierra Metals announced Q1, 2023 production and financial results from their Bolivar and Cusi mines in Chihuahua. Starcore reported Q4, 2023 production results from its San Martin mine in Queretaro. Excellon announced Q1, 2023 financial results. ON FINANCING, Fabled announced that it intends to complete a non-brokered private placement for gross proceeds of up to CAD $500K (Mecatona project, Chihuahua). Excellon announced a private placement financing for up to CAD $10M of subscription receipts (La Negra mine, Queretaro). ON RESOURCES AND DEVELOPMENT, Guanajuato Silver released drill results from their San Ignacio mine in Guanajuato and Topia mine in Durango. Alamos Gold reported results from its ongoing drilling program at Puerto del Aire deposit and Capulin target within its Mulatos mine in Sonora. GoGold announced results of its initial Preliminary Economic Assessment (PEA) at its Los Ricos North project in Jalisco. Tocvan provided an update and sampling results from a bulk sample completed at its Pilar project in Sonora. ON DEALS AND CORPORATE ISSUES, Vizsla granted stock options to Directors, Officers, Employees, and Consultants (Panuco project, Sinaloa). Fabled provided an update on the agreement with Kootenay to acquire the Mecatona property in Chihuahua. Excellon provided corporate highlights for the three month ended March 31, 2023. ON SOCIAL RESPONSIBILITY, no relevant news.
ON MEXICO ISSUE
Alamos Gold Inc., and Guanajuato Silver Company Ltd., reported the best drilling intercepts in Mexico on the third week of May, 2023. Details are shown in the table below:
ON EXPLORATION
Colibri Resource Corporation reported a strong soil gas hydrocarbon gold anomaly (SGH) south of the main Zone at its Evelyn-Plomo project in Sonora. To define this anomaly, a total of 110 soils samples were collected at 25m stations along 100m spaced lines. “Collectively, these interpreted features indicate a robust SGH response with a high degree of confidence that it is indicative of blind mineralization underlying the southern SGH gold anomaly”. Colibri plans to drill test this target with the hopes of expanding the Main Zone, as well as to continue evaluating the SGH method as a tool for future exploration on the Evelyn-Plomo project.
Vortex Metals Inc., initiated environmental and surface geological studies at its Zaachila project in Oaxaca. It will allow protecting the local environment and deepening the understanding of the project´s potential to advance its pursuit of multiple high-grade copper targets.
ON MINING
Americas Gold and Silver Corporation reported Q1, 2023 production and financial results from its Cosala operation in Sinaloa. The company produced approximately 265K Oz Ag, 2.7M Lb Pb, and 7.2M Lb Zn. Cash cost and AISC were USD $4.61 per Oz Ag and USD $9.52 per Oz Ag respectively. Production for 2023 is expected to be between 1.2-1.4M Oz Ag,11-13M Lb Pb, and 33-37M Lb Zn, benefiting from more production from the higher-grade silver areas in the Upper Zone of the San Rafael mine.
Sierra Metals Inc., announced Q1, 2023 production and financial results from their Bolivar and Cusi mines in Chihuahua. At Bolivar mine, the company processed 299K tonnes at a cash and AISC of USD $1.85 and USD $3.1 per CuEq payable pound. It reported cost of sales of USD $14.93M; a total cash cost of USD $13.16M; and a cash cost of USD $43.99 per ton processed. At Cusi mine, the company processed 59.1K tonnes at a cash and AISC of USD $23.02 and USD $29.8 per Oz AgEq payable. It reported cost of sales of USD $5.8M; a total cash cost of USD $5.23M; and a cash cost of USD $88.43 per ton processed.
Starcore International Mines Ltd., reported Q4, 2023 production results from its San Martin mine in Queretaro. The company milled 56,821 tonnes of 1.46 g/t Au and 11 g/t Ag with metallurgical recoveries of 86.12% and 48.72% respectively to produce 2,409 Oz AuEq.
Excellon Resources Inc., announced Q1, 2023 financial results. Excellon reported a reversal of the USD $22M litigation liability relating to the previously disclosed judgment against one of the company’s subsidiaries in Mexico; a gain on the deconsolidation of San Pedro of USD $24.25M; other income of USD $1.58M; and a net income of USD $15.9M. The company announced in its 2022 Preliminary Economic Assessment (PEA) a post-tax NPV (using a discount rate of 5%) of USD $132.4M and estimated restart capital of USD $20.9M, based on the PEA.
ON FINANCING
Fabled Silver Gold Corp., announced that it intends to complete a non-brokered private placement for gross proceeds of up to CAD $500K at a price of CAD $0.05 per unit. Gross proceeds will be used to complete a phase 1 exploration program at the Mecatona project in Chihuahua, and for general working capital purposes.
Excellon Resources Inc., announced a private placement financing for up to CAD $10M of subscription receipts at an offer price of CADS $0.35 per subscription receipt (La Negra mine, Queretaro).
ON RESOURCES AND DEVELOPMENT
Guanajuato Silver Company Ltd., released drill results from their San Ignacio mine in Guanajuato and Topia mine in Durango. At San Ignacio mine, drilling highlights reported in true widths include hole UGSI23-008 with 1.95 g/t Au and 501 g/t Ag (657 g/t AgEq) over 1.90m, including 3.42 g/t Au and 744 g/t Ag (1,018 g/t AgEq) over 0.70m, plus 2.01 g/t Au and 2 g/t Ag (163 g/t AgEq) over 0.22m, plus 0.23 g/t Au and 94 g/t Ag (113 g/t AgEq) over 0.35m; hole UGSI23-009 with 1.26 g/t Au and 415 g/t Ag (516 g/t AgEq) over 1.93m, including 4.14 g/t Au and 2,020 g/t Ag (2,351 g/t AgEq) over 0.22m, plus 0.25 g/t Au and 113 g/t Ag (133 g/t AgEq) over 0.77m, including 0.46 g/t Au and 215 g/t Ag (252 g/t AgEq) over 0.40m; and hole UGSI23-010 with 1.78 g/t Au and 557 g/t Ag (699 g/t AgEq) over 0.45m, plus 1.68 g/t Au and 8 g/t Ag (142 g/t AgEq) over 1.68m, including 2.57 g/t Au and 9 g/t Ag (215 g/t AgEq) over 0.64m, plus 1.72 g/t Au and 122 g/t Ag (260 g/t AgEq) over 1.72m, including 2.94 g/t Au and 151 g/t Ag (386 g/t AgEq) over 0.60m, plus 0.32 g/t Au and 334 g/t Ag (359 g/t AgEq) over 4.89m, including 1.25 g/t Au and 1,947 g/t Ag (2,047 g/t AgEq) over 0.37m. At Topia mine, drilling highlights reported in true widths include hole UT23-458 with 4.39 g/t Au, 660 g/t Ag, 3.2% Pb, and 8.5% Zn (1,435 g/t AgEq) over 0.45m, plus 13.89 g/t Au, 152 g/t Ag, 1% Pb, and 5.6% Zn (1,551 g/t AgEq) over 0.10m; hole UT23-459 with 2.02 g/t Au, 938 g/t Ag, 24.6% Pb, and 9.8% Zn (2,150 g/t AgEq) over 0.42m; hole UT23-460 with 8.16 g/t Au, 113 g/t Ag, 2.1% Pb, and 1.9% Zn (923 g/t AgEq) over 0.45m; hole UT23-461 with 3.53 g/t Au, 905 g/t Ag, 1.1% Pb, and 7.8% Zn (1,525 g/t AgEq) over 0.10m; hole UT23-463 with 6.55 g/t Au, 1,424 g/t Ag, 4.8% Pb, and 13.8% Zn (2,674 g/t AgEq) over 0.60m; and hole UT23-465 with 0.0 g/t Au, 731 g/t Ag, 4% Pb, and 0.2% Zn (851 g/t AgEq) over 0.15m.
Alamos Gold Inc., reported results from its ongoing drilling program at Puerto del Aire deposit and Capulin target within its Mulatos mine in Sonora. At Puerto del Aire deposit, drilling highlights reported in true widths and values > 40 g/t Au capped include hole 23MUL117 with 20.95 g/t Au (11.14 g/t Au cut) over 14.15m; hole 23MUL119 3.52 g/t Au over 17.05m, plus 8.33 g/t Au over 18m; hole 23MUL112 with 14.81 g/t Au (12.34 g/t Au cut) over 9.1m; hole 23MUL108 with 16.19 g/t Au (7.63 g/t Au cut) over 7.75m; hole 23MUL98 with 10.8 g/t Au over 3m, plus 33.14 g/t Au over 3.05m: and hole 23MUL115 with 15.49 g/t Au (13.89 g/t Au cut) over 6m. These results extend high-grade gold mineralization outside of Mineral Reserves and Resources at Puerto Del Aire. At Capulin target, drilling highlights include hole 23REF012 with 2.01 g/t Au over 82.45m, including 4.81 g/t Au over 16.40m, including 5.38 g/t Au over 12.35m. Capulin target is located 2km east of the former San Carlos open pit.
GoGold Resources Inc., announced results of its initial Preliminary Economic Assessment (PEA) at its Los Ricos North project in Jalisco. Highlights of the PEA include an after-tax NPV (using a discount rate of 5%) of USD $413M, with an after-tax IRR of USD $29%; a 13-year mine life producing a total of 110.3M payable Oz AgEq, consisting of 68M Oz Ag, 221.7K Oz Au, 22.8M Lb Cu, 144.1M Lb Pb, and 242.2M Lb Zn; an initial capital costs of USD $221M, including USD $29M in contingency costs, over an expected 18 month build, additional expansion capital of USD $137M, and sustaining capital costs of USD $6M over the life of mine (LOM); an average LOM operating cash costs of USD $9.50 per Oz AgEq, and all in sustaining costs (AISC) of USD $9.68 per Oz AgEq; an average annual production of 8.8M Oz AgEq in years one through twelve; and approximately 3/4 of LOM production is from four open pits containing oxide mineralization and approximately 1/4 is from a separate open pit which contains only sulphide mineralization.
Tocvan Ventures Corp., provided an update and sampling results from a bulk sample completed at its Pilar project in Sonora. Tocvan reported bulk sample material averaging grades of 1.9 g/t Au and 13 g/t Ag from 148 samples ranging from 0.8 to 3.4 g/t Au and from 5 to 26 g/t Ag. Additionally, 32 fine fraction samples excluded from heap leach process returned Au values from 1.2 to 2.8 g/t Au, with a weighted mean of 2.02 g/t Au, and Ag values from 9 to 25 g/t Ag, with a weighted mean of 16 g/t Ag. The fine fraction along with additional bulk sample material will be used in testing gravity recovery methods. “The heap leach process is currently underway for the Bulk Sample. Over 800 tonnes of Bulk Sample material have been prepared for heap leach processing, an additional 350 tonnes of crushed material and 250 tonnes of raw-bulk sample are available for gravity recovery and later agitated leach testing”.
ON DEALS AND CORPORATE ISSUES
Vizsla Silver Corporation granted 3.85M stock options at an exercise price of $1.60 to Directors, Officers, Employees, and Consultants. The options are exercisable for a period of five years and will vest over the next two years (Panuco project, Sinaloa).
Fabled Silver Gold Corp., provided an update on the agreement with Kootenay to acquire the Mecatona property in Chihuahua. “The company has been in the process of preparing required documentation in respect of the Proposed Transaction including a NI 43-101 Technical Report on the Mecatona Property. The Company is continuing to correspond with the TSX Venture Exchange regarding the Proposed Transaction and will provide further updates in due course”.
Excellon Resources Inc., provided corporate highlights for the three month ended March 31, 2023. The company announced the acquisition of the post-producing La Negra mine in Queretaro. La Negra is a fully permitted mine with Indicated Mineral Resources of approximately 15.1M Oz AgEq at 191 g/t AgEq and Inferred Mineral Resources of approximately 41.8M Oz AgEq at 202 g/t AgEq.
ON SOCIAL RESPONSIBILITY
No relevant news.
Content like what you have just read can be seen at https://gambusinoprospector.com/ and at LinkedIn’s Mexico Mineral Exploration Group.
On the picture above, quartz blade texture in a low-sulphidation epithermal vein system in a prospect in Zacatecas, Mexico. Photo by Miguel A Heredia.
Quartz veining hosted in a hydrothermaly-altered intrusive
By Miguel A Heredia
During the 18th week of the year (May 1st to May 7th, 2023), at least 28 press releases were announced by companies working in Mexico, and 2 news published by the media, with eleven reporting resources and developments of their properties, six commenting on Mexican issues, four communicating production and financial results, three disclosing deals and corporate issues, three announcing financing issues, two informing on exploration results, and one discussing social issues. ON MEXICO ISSUES, Fortuna Silver reported an illegal blockade at its San Jose mine in Oaxaca. At least 40 companies from Canada and the United States that operate in Mexico expressed their intention to protect themselves after the approval of the reforms to the Mining Law. Chesapeake has initiated legal proceedings against the Dirección General de Minas of Mexico (DGM) with the Federal Court of Administrative Justice in the state of Durango, Mexico in response to the DGM’s cancellation of the San Vicente 3 mineral concession. Radius filed a legal demand with a Federal Mexican Court to obtain title to the Amelia 4 mining concession at its Amalia project in Chihuahua. The Senate of Mexico approved the mining reform that reduces and facilitates the cancellation of concessions. Bendito Resources, Infinitum Copper, Pan American Silver, and Silver Tiger reported the best drilling intercepts in Mexico on the first week of May, 2023. ON EXPLORATION, In Sonora, Infinitum Copper reported results from 6 of 12 drill holes collared at its Adelita project. In Chihuahua, Reyna Silver provided an update on their Batopilas and Guigui projects. ON MINING, Capstone, Argonaut, and First Majestic reported Q1, 2023 production and financial results for their Mexican operations. Minera Alamos reported full year 2022 production and financial results from its Santana property in Sonora. ON FINANCING, Sonoro Gold announced it plans to undertake a non-brokered private placement for gross proceeds of up to CAD $3M (Cerro Caliche project, Sonora). Kootenay announced a private placement for gross proceeds of $4M (Columba project, Chihuahua). First Majestic announced that its Board of Directors has declared a cash dividend payment in the amount of $0.0057 per common share for Q1, 2023. ON RESOURCES AND DEVELOPMENT, Xali received the change in soil use permit for its El Oro Tailings project in Mexico State. Bendito Resources presented results from the last 9 of 18 RC holes drilled at its El Alacran project in Sonora. Silver Tiger announced results from its ongoing drill program at its El Tigre project in Sonora. Capstone reported Mineral Reserves and Mineral Resources for its Cozamin property in Zacatecas as at January 1, 2023. GR Silver filed a NI 43-101 technical report to provide an updated resource estimate for its Plomosas project in Sinaloa. GoGold released additional results from its ongoing drilling campaign at its Los Ricos South project in Jalisco. Oroco presented a Mineral Resource Estimate as of April 21, 2013 for its Santo Tomas project in Sinaloa. Prime announced an updated Mineral Resource Estimate for its Los Reyes property in Sinaloa. Pan American Silver released results of eighth holes drilled at La Colorada Skarn project in Zacatecas. Minera Alamos announced positive results of an independent Preliminary Economic Assessment for its Cerro de Oro project in Zacatecas. Torex provided the second quarterly update on its Media Luna project in Guerrero. ON DEALS AND CORPORATE ISSUES, Bear Creek announced its CEO succession (Mercedes mine, Sonora). GR Silver announced the retirement of its CFO and the appointment of its replacement (Plomosas project, Sinaloa). Tarachi signed a definitive agreement for the sale of Magistral Tailings project in Durango. ON SOCIAL RESPONSIBILITY, Almaden completed a social impact assessment relating to its Ixtaca project in Puebla, and underlying mineral claim area.
ON MEXICO ISSUE
Fortuna Silver Mines Inc., reported an illegal blockade at its San Jose mine in Oaxaca due to a group of workers did not agree with the estimated amount the Company is to distribute among the workforce as part of the worker´s profit sharing entitlement. Profit sharing is a transparent calculation and is payable in accordance with Mexican legislation. As a consequence, operations at the mine have been temporarily halted.
At least 40 companies from Canada and the United States that operate in Mexico expressed their intention to protect themselves after the approval of the reforms to the Mining Law by the government because they consider that they are violating their rights and that they are being changing the rules of the game. The law firm Von Wobeser y Sierra, anticipated that they will also consider the international arbitration considered as a mechanism to resolve disputes within the framework of the Free Trade Agreement between Mexico, the United States and Canada (T-MEC) and the Trans-Pacific Economic Cooperation Agreement (TPP). The elimination of the concepts of Free Land and First Applicant are the elements that most concern companies because with them the government could “legalize” the non-granting of concessions to private parties, by giving the exploration monopoly to the Mexican Geological Service (SGM). ), warned the Mining Chamber of Mexico (Camimex). Until now, the Canadian mining company Silver Bull Resources presented in March to the International Center for Settlement of Investment Disputes (ICSID) its intention to claim economic damages for at least USD $178M for the blockade of its Sierra Mojada Project since September 2019. The American Vulcan Materials presented to ICSID a claim for an estimated damage of at least USD 1.9 B against Mexico for the closure and occupation of the Sac-Tun mine (formerly Calica) and the Punta Venado pier in Playa del Carmen. A resolution on this issue is pending since May 2022.
Chesapeake Gold Corporation has initiated legal proceedings against the Dirección General de Minas of Mexico (DGM) with the Federal Court of Administrative Justice in the state of Durango, Mexico in response to the DGM’s cancellation of the San Vicente 3 mineral concession, on the basis that the Company did not provide adequate evidence to support the Company’s performance of the exploration work required to maintain the concession. The Company’s legal position, approved by external Mexican legal counsel, is that the work required to maintain the concession was conducted on the property and appropriate evidence was submitted to the DGM to substantiate the work. The San Vicente 3 mineral concession is one of 12 mineral concessions comprising the Metates property, representing 700 hectares of the 4,260 hectares in the Metates project, and encompasses a portion of the Metates mineral resource. The Company intends to vigorously defend its position with respect to the San Vicente 3 mineral concession.
Radius Gold Inc., filed a legal demand with a Federal Mexican Court to obtain title to the Amelia 4 mining concession at its Amalia project in Chihuahua. “Radius and project JV partner Pan American Silver Corp. have completed all the requirements, fee payments and surveys for the Amalia 4 application. The mining authority of Chihuahua has processed and approved the submission without fault and passed the license to the Mexico Mining Directorate proposing title issuance. The regulated time for the mining authority to comment and request revision has passed and granting of title is a legal requirement under the mining law. Radius has filed a legal demand to enforce the granting of title. Radius legal counsel believes the Company has clear legal right to the application and title. Legal counsel has been successful in obtaining granted concessions in similar situations recently”.
The Senate of Mexico approved the mining reform that reduces and facilitates the cancellation of concessions. The legal changes were approved despite Canada’s claim and in an express session in which twenty laws and reforms were endorsed in just five hours. The senators approved modifications to the Mining, National Water, General Ecological Balance and Environmental Protection laws, and the General for the Prevention and Integral Management of Waste. The reform will allow the government to only grant mining concessions through a public tender and with prior consultation with indigenous peoples, in addition to facilitating the revocation of the license for environmental damage. The reform could generate tensions with the partners of the T-MEC, in particular with Canada, which has already complained in recent days. The Canadian Minister of International Trade, Mary Ng, revealed last Wednesday that she spoke with the Secretary of the Economy of Mexico, Raquel Buenrostro, to express the “concern” of the Canadian government with the then proposed reform of the country’s mining sector, in the that Canadian companies constitute the largest foreign investor.
GoGold Resources Inc., Bendito Resources Inc., Infinitum Copper Corp., Pan American Silver Corp., and Silver Tiger Metals Inc., reported the best drilling intercepts in Mexico on the first week of May, 2023. Details are shown in the table below:
ON EXPLORATION
Infinitum Copper Corp., reported results from 6 of 12 drill holes collared at its Adelita project in Sonora. Drilling highlights include hole ADD-22-0021 with 0.51% Cu, 0.16 g/t Au, 16 g/t Ag, and 0.6% Zn (1% CuEq) over a true width (TW) of 19.85m, including 0.83% Cu, 0.22 g/t Au, 22 g/t Ag and 0.8% Zn (1.51% CuEq) over a TW of 7.98m, including 0.41% Cu, 0.16 g/t Au, 14 g/t Ag, and 0.5% Zn (0.83% CuEq) over a TW of 8.69m; and hole AD-22-0028 with 0.8% Cu, 0.35 g/t Au, and 19 g/t Ag (1.22% CuEq) over a TW of 48.7m, including 0.85% Cu, 0.31 g/t Au, and 29 g/t Ag (1.34% CuEq) over a TW of 20.38m, including 1.03% Cu, 0.51 g/t Au, and 16 g/t Ag (1.54% CuEq) over a TW of 20.76m. “AD-22-0028 is the only drill hole which has intersected the large and distinct magneto-telluric anomaly on the eastern flank of the Cerro Grande anticline”. The intersection of hole AD-22- 0028 is open to the north, east and west.
Reyna Silver Corp., provided an update on their Batopilas and Guigui projects in Chihuahua. At Batopilas, Chihuahua, the company has carried out detailed sampling and structural programs, as well as conducted a detailed AMT geophysics study to outline major structures and features that may control vein control and location of mineralization, as well as to understand the historic ore shots geometry and mineralization surface expressions , including the newly identified gold-bearing structures. The company plans to drill again in the property a minimum of 3,000m once the final combining of the historical data, drill results, and detailed follow-up work is complete. At Guigui project, Chihuahua, the previous Phase 1 and 2 of drilling revealed critical components of an important CRD system. These drill programs identified a 0.5 square km skarn footprint that remains open in all directions. The company recently executed a Natural Source Audio MagnetoTellurics (NSAMT) survey and is waiting for the final interpretation to integrate into the developing drill-target model for the Phase 2 drilling program this year.
ON MINING
Capstone Copper Corp., reported Q1, 2023 production and financial results from its Cozamin property in Zacatecas. The company produced 11.65M Lb Cu at a cash cost of 1.72 per Lb Cu produced. Realized copper price was USD $4.17 per Lb.
Argonaut Gold Inc., reported production and financial results from their Mexican operations. At La Colorada, Sonora, the company reported that it sold 5,086 Oz Au; a cost of sales of USD $12.7M; a cost of sales per Oz Au sold of USD $2,505; a production cost of USD $8M; a cash and all in sustaining cost per Oz Au sold of USD $2,229 and USD $2,333 respectively. At San Agustin, Durango, it reported that 11,491 Oz Au were sold; a cost of sales of USD $22.7M; a cost of sales per Oz Au sold of USD $1,980; a production cost of USD $17.4M; a cash and all in sustaining cost per Oz Au sold of USD $1,558 and USD $1,627 respectively. At El Castillo, Durango, the company reported that it sold 7,358 Oz Au; a cost of sales of USD $14.5M; a cost of sales per Oz Au sold of USD $1,976; a production cost of USD $8.3M; a cash and all in sustaining cost per Oz Au sold of USD $1,675 in both cases.
First Majestic Silver Corp., reported Q1, 2023 production and financial results from their Mexican operations. Figures by mine operation is shown in the table below:
Minera Alamos Inc., reported full year 2022 production and financial results from its Santana property in Sonora. The company recovered and sold 11.67K Oz Au and reported revenue s of $21.7M; costs of goods sold of $13.5M for gross profits of $8.18M; net income of $5.6M; cash and cash equivalents of $13.15M; and working capital as of December 31, 2022 of $18.3M.
ON FINANCING
Sonoro Gold Corp., announced it plans to undertake a non-brokered private placement for gross proceeds of up to CAD $3M. The company will use the net proceeds to fund the ongoing development of a proposed heap leach mining operation at its Cerro Caliche project in Sonora.
Kootenay Silver Inc., announced a private placement for gross proceeds of $4M. Gross proceeds will be used for working capital requirements and other general corporate purposes (Columba project, Chihuahua).
First Majestic Silver Corp., announced that its Board of Directors has declared a cash dividend payment in the amount of USD $0.0057 per common share for Q1, 2023. The first quarter cash dividend will be paid to holders of record of First Majestic’s common shares as of the close of business on May 18, 2023, and will be distributed on or about June 9, 2023.
ON RESOURCES AND DEVELOPMENT
Xali Gold Corp., and its partner Sun River Gold Corp., received the change in soil use permit for its El Oro Tailings project in Mexico State. This is the main permit required for the El Oro Tailings project that allows moving out the tailings from the historical deposition site which is within the town of El Oro and to the industrial processing site outside of the town.
Bendito Resources Inc., presented results from the last 9 of 18 RC holes totaling 2,031m drilled at its El Alacran project in Sonora as part of the 2023 Phase 1 exploration program focused on demonstrating the southeastward extension of mineralization from the historical resources established at Loma Bonita and Mesa de Plata. Drilling highlights include hole BSS-23-011 with 0.13 g/t Au and 9 g/t Ag (0.24 g/t AuEq) over 33m, including 0.26 g/t Au and 20 g/t Ag (0.5 g/t AuEq) over 3m, plus 0.89 g/t Au and 22 g/t Ag (1,15 g/t AuEq) over 27m, including 1.89 g/t Au and 32 g/t Ag (2.27 g/t AuEq) over 6m, plus 1.32 g/t Au and 36 g/t Ag (1.74 g/t AuEq) over 3m; hole BSS-23-015 with 0.45 g/t Au and 2 g/t Ag (0.48 g/t AuEq) over 24m, including 2.37 g/t Au and 1 g/t Ag (2.39 g/t AuEq) over 3m, plus 0.27 g/t Au and 14 g/t Ag (0.44 g/t AuEq) over 63m, including 0.49 g/t Au and 39 g/t Ag (0.94 g/t AuEq) over 15m, plus 0.11 g/t Au and 17 g/t Ag (0.31 g/t AuEq) over 52.5m, including 0.21 g/t Au and 42 g/t Ag (0.71 g/t AuEq) over 7.5m; hole BSS-23-016 with 0.31 g/t Au and 11 g/t Ag (0.45 g/t AuEq) over 66m, including 2.26 g/t Au and 4 g/t Ag (2.3 g/t AuEq) over 7.5m, 8.06 g/t Au and 1 g/t Ag (8.07 g/t AgEq) over 1.5m, plus 0.15 g/t Au and 4 g/t Ag (0.2 g/t AuEq) over 19.5m, plus 0.16 g/t Au and 2 g/t Ag (0.19 g/t AuEq) over 12m; and hole BSS-23-018 with 0.16 g/t Au and 4 g/t Ag (0.21 g/t AuEq) over 9m, plus 0.08 g/t Au and 39 g/t Ag (0.53 g/t AuEq) over 93m, including 0.08 g/t Au and 84 g/t Ag (1.07 g/t AuEq) over 7.5m, plus 0.09 g/t Au and 59 g/t Ag (0.79 g/t AuEq) over 15m.
Silver Tiger Metals Inc., announced results from its ongoing drill program at its El Tigre project in Sonora. Highlights of the ongoing drilling program include hole ET-23-457 in the Sulphide Zone with 0.11 g/t Au, 297 g/t Ag, 0.28% Cu, 1.4% Pb, and 2.2% Zn (439 g/t AgEq) over 38.7m, including 0.17 g/t Au, 693 g/t Ag, 0.6% Cu, 3% Pb, and 4.6% Zn (987 g/t AgEq) over 15.8m, including 0.15 g/t Au, 1,100 g/t Ag, 0.87% Cu, 5.1% Pb, and 8% Zn (1,581 g/t AgEq) over 6.3m, including 0.13 g/t Au, 1,246 g/t Ag, 1% Cu, 6.4% Pb, and 13.4% Zn (1,949 g/t AgEq) over 3.4m, including 0.15 g/t Au, 1,943 g/t Ag, 1.58% Cu, 7.3% Pb, and 10.9% Zn (2,642 g/t AgEq) over 0.6m. “This hole added an additional 100 metres of down dip extent to east from Hole 428 to 457 and what it was thought was a thin zone of a little over a meter went to almost 39 meters of high grade mineralization. Step out drilling now continues south”.
Capstone Copper Corp., reported Mineral Reserves and Mineral Resources for its Cozamin property in Zacatecas as at January 1, 2023. The company announced Probable Mineral Reserves of 10.2M tonnes with grades of 1.6% Cu, 43 g/t Ag, 0.5% Zn, and 0.3% Pb. It also presented Measured + Indicated Resources of 19.7M tonnes with grades of 1.58% Cu, 47 g/t Ag, 1.1% Zn, and 0.4% Pb, and Inferred Resources of 12.3M tonnes with grades of 0.72% Cu, 38 g/t Ag, 2% Zn, and 0.8% Pb. (Mineral Reserve is reported inclusive of Mineral Resource).
GR Silver Mining Ltd., filed a NI 43-101 technical report to provide an updated resource estimate for its Plomosas project in Sinaloa as of March 15, 2023. The company reported Indicated Resources of 15M tonnes with grades of 117 g/t Ag, 0.18 g/t Au, 0.4% Pb, 0.6% Zn, and 0.03% Cu (179 g/t AgEq) for a total of 55M Oz Ag, 84.5K Oz Au, 143.4M Lb Pb, 201-6M Lb Zn, and 8.96M Lb Cu (85M Oz AgEq) and Inferred Resources of 9M tonnes with grades of 78 g/t Ag, 0.38 g/t Au, 0.7% Pb, 1% Zn, and 0.03% Cu (171 g/T AgEq) for a total of 22M Oz Ag, 108.2K Oz Au, 143.4M Lb Pb, 203.8M Lb Zn, and 6.7M Lb Cu (49M Oz AgEq).
GoGold Resources Inc., released additional results from its ongoing drilling campaign at Eagle Area within its Los Ricos South project in Jalisco. Drilling highlights include hole LRGAG-22-162 with 6.07 g/t Au and 1,064 g/t Ag (20.26 g/t AuEq or 1,519 g/t AgEq) over 31m, including 19.38 g/t Au and 3,922 g/t Ag (71.67 g/t AuEq or 5,375 g/t AgEq) over 8.1m, including 144 g/t Au and 36,319 g/t Ag (628.25 g/t AuEq or 47,119 g/t AgEq) over 0.7m; hole LRGAG-22-147 with 1.06 g/t Au and 41 g/t Ag (1.63 g/t AuEq or 122 g/t AgEq) over 46.6m, including 3.24 g/t Au and 76 g/t Ag (4.25 g/t AuEq or 319 g/t AgEq) over 13.4m, including 24.3 g/t Au and 45 g/t Ag (24.9 g/t AuEq or 1,867 g/t AgEq) over 0.8m; hole LRGAG-22-150 with 6.96 g/t Au and 65 g/t Ag (7.83 g/t AuEq or 587 g/t AgEq) over 11.3m, including 12.02 g/t Au and 100 g/t Ag (13.36 g/t AuEq or 1,002 g/t AgEq) over 6.3m, including 32.1 g/t Au and 157 g/t Ag (34.19 g/t AuEq or 2,564 g/t AgEq) over 1.1m; hole LRGAG-22-158 with 2.19 g/t Au and 138 g/t Ag (4.03 g/t AuEq or 302 g/t AgEq) over 24.6m, including 3.87 g/t Au and 340 g/t Ag (8.41 g/t AuEq or 631 g/t AgQ) over 8.8m, including 13.06 g/t Au and 2,660 g/t Ag (48.52 g/t AuEq or 3,639 g/t AgEq) over 0.8m; and hole LRGAG-22-161 with 2.51 g/t Au and 339 g/t Ag (7.03 g/t AuEq or 527 g/t AgEq) over 33m, including 5.16 g/t Au and 945 g/t Ag (17.76 g/t AuEq or 1,332 g/t AgEq) over 9.6m, including 19.58 g/t Au and 3,665 g/t Ag (68.46 g/t AuEq or 5,134 g/t AgEq) over 1.3m. GoGold continues to work toward an upcoming updated Los Ricos South Mineral Resource and Preliminary Economic Assessment, which is expected to be completed by the end of June, 2023.
Oroco Resource Corp., presented a Mineral Resource Estimate as of April 21, 2023 for its Santo Tomas project in Sinaloa. The company reported Indicated Resources of 487.3M tonnes with grades of 0.32% Cu, 0.009% Mo, 0.03 g/t Au, and 2 g/t Ag (0.36% CuEq) for a total of 3.4 B Lb Cu, 91.9M Lb Mo, 392.8K Oz Au, and 32.7M Oz Ag (3.86 B Lb CuEq), and Inferred Resources of 599.9M tonnes with grades of 0.32% Cu, 0.007% Mo, 0.03 g/t Au, and 2 g/t Ag (0.36% CuEq) for a total of 4.17 B Lb Cu, 95.6M Lb Mo, 500.6K Oz Au, and 38.5M Oz Ag (4.69 B Lb CuEq). Oroco believes Santo Tomas has a substantial resource that is exposed at or near surface and has robust potential to support a large, low-cost open-pit mining operation. “The MRE confirms the high potential of the project, which remains open to the north and south, with clear potential for further expansion of the resource and further conversion of MRE Inferred resources to an Indicated resource classification”.
Prime Mining Corp., announced an updated Mineral Resource Estimate for its Los Reyes property in Sinaloa. The company reported in the Mill Category a total of 16.6M tonnes of Indicated Resources with grades of 1.66 g/t Au and 60 g/t Ag (2.44 g/t AuEq) for a total of 888K Oz Au and 32.18M Oz Ag (1.3M Oz AuEq) contained, and Inferred Resources of 10.8M tonnes of 1.18 g/t Au and 47 g/t Ag (1.79 g(/t AuEq) for a total of 411K Oz Au and 16.39M Oz Ag (623K Oz AuEq) contained. In the Heap Leach Category Prime reported a total of 10.5M tonnes of Inferred Resources with grades of 0.37 g/t Au and 9 g/t Ag (0.49 g/t AuEq) for a total of 125K Oz Au and 3.08M Oz Ag (165K Oz AuEq), and Inferred Resources of 7.3M tones of 0.37 g/t Au and 8 g/t Ag (0.47 g/t AuEq) for a total of 86K Oz Au and 1.9M Oz Ag (111K Oz AuEq). Indicated Resources (Mill + Heap Leach) are 27.2M tonnes of 1.16 g/t Au and 40 g/t Ag (1.68 g/t AuEq) for a total of 1.01M Oz Au and 35.5M Oz Ag (1.47M Oz AuEq) and Inferred Resources (Mill + Heap Leach) of 18.1M tonnes of 0.85 g/t Au and 31 g/t Ag (1.26 g/t AuEq) for a total of 497K Oz Au and 18.3M Oz Ag (734K Oz AuEq).
Pan American Silver Corp., released results of eighth holes drilled at La Colorada Skarn project in Zacatecas. Drilling highlights include hole D-96-10-22 with 391 g/t Ag, 0.13% Cu, 10.8% Pb, and 8.5% Zn over 64.3m, including 914 g/t Ag, 0.19% Cu, 25.2% Pb, and 16.7% Zn over 23.25m, plus 154 g/t Ag, 0.03% Cu, 2.2% Pb, and 0.9% Zn over 22.75m, plus 27 g/t Ag, 0.23% Cu, 2.5% Pb, and 5% Zn over 13.3m, plus 37 g(/t Ag, 0.14% Cu, 1.1% Pb, and 6.4% Zn over 135.7m; hole D-96-12-23 with 233 g/t Ag, 0.1% Cu, 6.6% Pb, and 7.3% Zn over 109.55m, including 487 g/t Ag, 0.15% Cu, 15.5% Pb, and 10.1% Zn over 44.7m, plus 54 g/t Ag, 0.03% Cu, 1.3% Pb, and 2.6% Zn over 18m; hole D-96-09-22 with 106 g/t Ag, 0.03% Cu, 1.3% Pb, and 2.6% Zn over 5m, plus 123 g/t Ag, 0.11% Cu, 3.5%Pb, and 8.6% Zn over 21.2m, plus 162 g/t Ag, 0.05% Cu, 3.5% Pb, and 3.5% Zn over 26.95m, plus 98 g/t Ag, 0.07% Cu, 0.8% Pb, and 4% Zn over 72.6m; hole D-98-11-22 with 165 g/t Ag, 0.12% Cu, 4.4% Pb, and 9.3% Zn over 17.05m, plus 134 g/t Ag, 0.05% Cu, 5.3% Pb, and 6.9% Zn over 6.4m, plus 56 g/t Ag, 0.05% Cu, 1.6% Pb, and 4.2% Zn over 9.90m, plus 152 g/t Ag, 0.02% Cu, 0.9% Pb, and 2.8% Zn over 20.5m, plus 79 g/t Ag, 0.06% Cu, 0.6% Pb, and 1.9% Zn over 14.55m; hole U-138-22 with 122 g/t Ag, 0.08% Cu, 2.7% Pb, and 5.3% Zn over 4.05m, plus 193 g/t Ag, 0.15% Cu, 10.8% Pb, and 9.3% Zn over 71.35m, including 231 g/t Ag, 0.17% Cu, 13-1% Pb, and 11% Zn over 57.95m, plus 49 g/t Ag, 0.14% Cu, 0.4% Pb, and 1.1% Zn over 40.3m; hole U-112-22 with 80 g/t Ag, 0.03% Cu, 1.3% Pb, and 1.2% Zn over 15.25m, plus 141 g/t Ag, 0.06% Cu, 5.8% Pb, and 5.5% Zn over 53.15m, including 243 g/t Ag, 0.08% Cu, 11.3% Pb, and 8.3% Zn over 15.15m, plus 66 g/t Ag, 0.07% Cu, 0.6% Pb, and 3.5% Zn over 14.7m, plus 25 g/t Ag, 0.08% Cu, 1.7% Pb, and 3.8% Zn over 32.95m; and hole D-93-06-23 with 304 g/t Ag, 0.17% Cu, 4.7% Pb, and 2.5% Zn over 21.45m, plus 17 g/t Ag, 0.07% Cu, 1.7% Pb, and 3.8% Zn over 5.05m, plus 40 g/t Ag, 0.02% Cu, 2.7% Pb, and 3.5% Zn over 31.2m, plus 27g/t Ag, 0.1% Cu, 2.9% Pb, and 4.7% Zn over 143.3m, plus 22 g/t Ag, 0.06% Cu, 3.7% Pb, and 5.9% Zn over 5.1m, plus 49 g/t Ag, 0.25% Cu, 1.5% Pb, and 4.4% Zn over 74.2m.
Minera Alamos Inc., announced positive results of an independent Preliminary Economic Assessment for its Cerro de Oro project in Zacatecas. In April, 2023 it also completed the documentation necessary to formally proceed with the Cerro de Oro permitting process. “Discussions continue with a number of interested lending partners to provide the modest capital funding requirements for the development of the Cerro de Oro mine”.
Torex Gold Resources Inc., provided the second quarterly update on its Media Luna project in Guerrero. The Media Luna project continues to track overall schedule and budget. “At quarter-end, the project was 24% complete across engineering, procurement, underground development, and surface construction. With no major changes to the project execution plan, first concentrate production remains on track for late 2024, with commercial production still anticipated in early 2025. At quarter end, 34% of upfront project expenditures had been committed, including 22% incurred. The level of spending on the project is expected to increase throughout the remainder of the year, with total project expenditures of USD $390M to USD $440M guided in 2023.
ON DEALS AND CORPORATE ISSUES
Bear Creek Mining Corporation announced its CEO succession after the previous one decided to retire from such position. This appointment will be effective on June 5, 2023 (Mercedes mine, Sonora).
GR Silver Mining Ltd., announced the retirement of its CFO and the appointment of its replacement effective immediately (Plomosas project, Sinaloa).
Tarachi Gold Corp., signed a definitive agreement dated May 2, 2023 with Compañía Minera de Atocha S.A. de C.V., for the sale of Magistral Tailings project in Durango. The company expects to receive USD $5.7M as follow: USD $2.5M on or before closing; USD $0.5 of the USD $1M currently held in Canadian escrow account will be released to Tarachi on or before closing; The remaining USD $500K in the escrow account will be released to Tarachi when Atocha concludes negotiations with the Ejido Magistral, or after 12 months, whichever occurs first; USD $500K will be paid to Tarachi six months from closing, less any contingency costs, if any, that arise after closing that were incurred by Tarachi but not identified during due diligence. US$500K will be paid to Tarachi when 50% of the tailings located on the Magistral Project have been mined, sold and/or processed or after the first complete calendar year of operation at the Magistral Project, whichever occurs first; USD $500K will be paid to Tarachi when 100% of the Magistral Tailings have been mined, sold and/or processed or after the second complete calendar year of operation at the Magistral Project, whichever occurs first; the amount of value-added tax currently owing as that tax benefit is realized by Atocha during operations and product sales from the Magistral Project will be paid to Tarachi, estimated to total approximately USD $650K. Tarachi anticipates the tax benefit will be realized by Atocha and paid to Tarachi within the first year of commercial operations at the Magistral Project.
ON SOCIAL RESPONSIBILITY
Almaden Minerals Ltd., completed a social impact assessment (SIA) relating to its Ixtaca project in Puebla, and underlying mineral claim area, and the completion of a human rights impact assessment (HRIA) that examines the potential impacts that could be caused if the Ixtaca project is developed in a manner consistent with the Ixtaca Feasibility Study. “The SIA concluded that there were no elements identified that would justify the cancellation of the concessions so long as the necessary social management measures were in place to avoid, mitigate or compensate for the potential negative impacts and amplify the positive ones. The HRIA represents a much more significant and holistic study than the SIA, as it aims to predict, identify, characterize, and assess the potential positive and negative impacts that the Ixtaca project could have during its lifespan on the human rights of both indigenous and non-indigenous communities located within its areas of influence and on other identified project stakeholders. In the event potential impacts are identified, the HRIA proposes strategies to amplify the positive and mitigate or compensate for the negative”.
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, quartz veining hosted in a hydrothermally-altered intrusive in a project in Sonora, Mexico. Photo by Miguel A Heredia.
During the 16th week of the year (April 17th to April 23th, 2023), at least 17 press releases were announced by companies working in Mexico, and 8 news published by the media, with nine commenting on Mexican issues, six communicating production and financial results, four reporting resources and developments of their properties, four disclosing deals and corporate issues, one informing on exploration results, and one announcing financing issues. ON MEXICO ISSUES, Minera Gorrión, a subsidiary of Almaden Minerals, will challenge the cancellation of their concessions in the Municipality of Ixtacamaxtitlan, Puebla. Municipal Presidents (Majors), as representatives of the mining communities of the Chihuahua State, signed and sent a letter to AMLO to request that the Mining Reform initiative be analyzed, since they consider that it will seriously affect employment, health, education, local businesses, and in general, the well-being of the population. The Association of Mining Engineers, Metallurgists and Geologists of Mexico (AIMMGM) requested to expand discussion on mining law before submitting its vote in the Senate. The Plenary of the Chamber of Deputies, with the rejection of the opposition, started the debate that ended in the approval, in “fast track” of a new Mining Law, at the initiative of the parliamentary group of Morena. According to specialists, the Reform to the Mining Law would affect fundamental rights and international treaties, opening an USMCA panel with Canada. With 290 votes in favor, 186 against and one abstention, Morena and his allies in the Chamber of Deputies got ahead of the opposition and approved in plenary session an alternative initiative to that of President Andrés Manuel López Obrador that reforms the Mining Law and other arrangements. Mining companies lose on the Mexican Stock Exchange due to the initiative to reform the Mining Law in Mexico. GoGold and Oroco reported the best drilling intercepts in Mexico on the third week of April 2023. ON EXPLORATION, In Oaxaca, Vortex received community approval for environmental and surface geological surface baseline study at its flagship Zaachila project. ON MINING, First Majestic, Golden Minerals, Avino, and Guanajuato Silver, reported Q1, 2023 production and financial results from their Mexican mine operations. Fresnillo and MAG Silver shipped their first commercial concentrate from the Juanicipio mine in Zacatecas. Bear Creek reported production and financial results from its Mercedes mine in Sonora for the period April 21, 2022 to December 31, 2022. ON FINANCING, Endeavour entered into a Commitment Letter for a senior secured debt facility for up to USD $120M (Terronera project, Jalisco). ON RESOURCES AND DEVELOPMENT, Oroco announced drilling results from its Santo Tomas project, Sinaloa. GoGold released results from its ongoing drilling program from its Los Ricos South property in Jalisco. Endeavour announced its intentions to proceed with the construction of an underground mine and mill at the Terronera project in Jalisco. Heliostar commenced drilling at its Ana Paula property in Guerrero following the re-scoping plans announced previously. ON DEALS AND CORPORATE ISSUES, Chesapeake announced the appointment of its VP of Corporate Development and Investor Relations (Metates project, Durango). Riverside appointed a new Director and presented results from its annual meeting of shareholders (La Union project, Sonora). Canasil signed an option agreement and an exclusivity agreement with Silver Dollar (Nora project, Durango). ON SOCIAL RESPONSIBILITY, No relevant news.
ON MEXICO ISSUE
Minera Gorrión, a subsidiary of Almaden Minerals Ltd., will challenge the resolution of a judge of the second court district in the state of Puebla to cancel their concessions in the Municipality of Ixtacamaxtitlan, Puebla, avoiding developing open-pit mining projects. Minera Gorrión regretted the resolution to cancel its concessions in Puebla, since it does not include any argument that the company provided in its defense. The company said in an statement that it is important to clarify that, as long as the legal proceedings related to this case continue, the company’s concession title requests remain valid, thus preserving the company and its acquired rights. For more than 20 years, the company has invested more than MXP $900M in exploration, the identification of a mineral deposit, and the planning to develop a modern mining project, which will have a very significant economic impact if authorized. “Minera Gorrión regrets that, in his resolution, the judge does not include any of the arguments that the company provided to defend its case.
Municipal Presidents (Majors), as representatives of the mining communities of the Chihuahua State, signed and sent a letter to AMLO to request that the Mining Reform initiative be analyzed before it is approved by the Congress since they consider that it will seriously affect employment, health, education, local businesses, and in general, the well-being of the population.
The Association of Mining Engineers, Metallurgists and Geologists of Mexico (AIMMGM) requested to expand discussion on the draft Decree for the reform of the Mining Law, the National Water Law, the Law of Ecological Balance and Environmental Protection and the General Law for the Prevention and Integral Management of Waste related to Mining and Water Concessions before submitting its vote in the Senate.
The Plenary of the Chamber of Deputies, with the rejection of the opposition, started the debate that ended in the approval, in “fast track” of a new Mining Law, at the initiative of the parliamentary group of Morena. Deputy Ignacio Mier Velazco, coordinator of the Morena Parliamentary Group said that “for the first time it is regulated, transparency is given, the people of Mexico are given certainty, the environment is protected and the water is taken care of”. However, during the discussion in general, the opposition showed their rejection of the approval of this law, for not listening to the voices of indigenous people, peasants, or defenders of the environment. The deputy Laura Patricia Contreras Duarte (PAN), assured that the initiatives proposed by the President of the Republic are nothing more than “whims”.
According to specialists, the Reform to the Mining Law would affect fundamental rights and international treaties, opening an USMCA panel with Canada. The mining and water reform initiative, which is under discussion in Congress, has generated concern in various sectors due to the possible violations of fundamental rights that its entry into force could imply, said lawyers who are experts in the matter. One of the aspects that have been the subject of criticism is the elimination of requests for processing of new concessions that are pending resolution. The initiative is a very serious impact on foreign direct investment, since it generates great discontent in the foreign mining sector, especially Canada, which belongs to the USMCA. As a result of this, it is very likely that a dispute resolution panel will be initiated because it is a clear violation of Mexico’s obligations in the protection of foreign investment, noting that Canadian investment is very large in Mexico, so it is a direct affectation to their interests.
With 290 votes in favor, 186 against and one abstention, Morena and his allies in the Chamber of Deputies got ahead of the opposition and approved in plenary session an alternative initiative to that of President Andrés Manuel López Obrador that reforms the Mining Law and other arrangements. The proposal -voted only in general and which is still being discussed in particular- reduces the validity of mining concessions from 50 to 30 years, with the possibility of extending them for another 25 years and at the end of that term, in case of participating in the new tender of the same lot, the holder would have preference for another 25 non-extendable years. In what the opposition described as an “albazo”, the parliamentary majority of Morena resumed the presidential initiative on the matter and presented it as its own initiative to discuss and vote on it on “fast-track”. It also conditions the mining concession to water availability and, where appropriate, to the mining water concession previously obtained, in accordance with the spirit of the Constitution in this matter, which gives priority to the human and domestic use of water. The obligation of the concessionaires to carry out the efficient use and reuse of water and, where appropriate, the restoration of the water resource is established. In its reform proposal, the Federal Executive proposed that the concession only be granted for mineral or substance susceptible to exploitation, which will allow, in its opinion, greater control and generation of resources for the State and the affected communities. In another aspect, the federal government establishes in its proposal that acts of private law are not recognized for the transfer of the mining concession, so that the Ministry of Economy may authorize the transfer only when the requirements requested for the original concession are met. That is, the concession will not serve to guarantee the obligations of the concession holder. On this, the initiative of the Morena legislators establishes that the transmission and guarantee of mining concessions will be carried out with the authorization of the General Directorate of Mines of the Ministry of Economy, as long as it is verified that the transmission is between two mining companies, in order to avoid speculation. In the case of the guarantee, when it is a company that is in operation. In order to regulate and avoid predatory, harmful mining activities that are contrary to the right to water, a healthy environment, people’s health and, in general, the rights of the towns and communities where said projects are carried out, the initiative of the Executive proposes presenting a social impact study and a Restoration, Closing and Post-closing Program. Likewise, it requires a Mine Closure Plan, the presentation of letters of credit to guarantee compliance with the mitigation and restoration obligations and a Waste Management Program. The initiative of the legislators considers the instrument of a letter of credit to guarantee the Mine Closure Plan.
Mining companies lose on the Mexican Stock Exchange due to the initiative to reform the Mining Law in Mexico. Grupo México, the main copper producer worldwide, fell 1.73%, to MXP $91.43 pesos per share, and Industrias Peñoles, the largest silver producer, lost 1.49%, to MXP $279.29 per share. The miners are concerned about the possible negative effects on their profitability and the economic impact on the country, since the proposal implies higher costs for them and a shorter time to recover the expenses,” said José María de las Rivas, Analyst at Intercam Bank.
GoGold Resources Inc., and Oroco Resources Corp., reported the best drilling intercepts in Mexico on the third week of April, 2023. Details are shown in the table below:
ON EXPLORATION
Vortex Metals Inc., received community approval for environmental and surface geological surface baseline study at its flagship Zaachila project in Oaxaca. The environmental study will be carried out by a group of 10 environmental specialists and will involve a total area of 500 hectares. The company also will conduct geological mapping, sampling, and trenching on the property.
ON MINING
First Majestic Silver Corp., reported Q1, 2023 production and financial results from their Mexican operations. Production figures by mine operation is shown in the table below:
The Company is planning to release its Q1, 2023 unaudited financial results on May 4, 2023.
Golden Minerals Company announced Q1, 2023 production figures from its Rodeo project in Durango. The company mined 154,371 tonnes, stockpiled 18,467 tonnes awaiting process, stockpiled 133,349 tonnes of low grade, and processed 54,272 tonnes of 1.6 g/t Au and 9 g/t Ag with metallurgical recoveries of 72.6% and 75.5% respectively, to produce 2,081 Oz of payable Au and 11,535 Oz Ag (2,219 Oz AuEq). The average realized price before refining and selling cost was USD $1,891.24 for Oz Au and USD $22.60 for Oz Ag.
Avino Silver & Gold Mines Ltd., reported Q1, 2023 production and financial results from its Avino mine in Durango. The company milled 159,757 tonnes of 51g/t Ag, 0.58 g/t Au, and 0.47% Cu with metallurgical recoveries of 89%, 77%, and 84% respectively to produce 234.3K Oz Ag, 2,286 Oz Au, and 1.4M Lb Cu (or 678.2K Oz AgEq).
Guanajuato Silver Company Ltd., announced Q1, 2023 consolidated production figures from their Mexican operations in Durango (Topia) and Guanajuato (El Cubo, Valenciana, and San Ignacio). The company mined 162,116 tonnes and milled 160,182 tonnes to produce 458.8K Oz Ag, 4,413 Oz Au, 906.7K Lb Pb, and 1.1M Lb Zn (938K Oz AgEq), with metallurgical recoveries of 83.9%, 81.1%, 87.1%, and 83.5% respectively.
Fresnillo plc (56%) and MAG Silver Corp. (44%), shipped their first lead-zinc commercial concentrate from the Juanicipio mine in Zacatecas. During March 2023, milling rates were around 60% of design, delivering an average of 2,476 tonnes per day with rates periodically reaching up to 3,900 tonnes per day. Current mill feed is a combination of mineralized material from underground stopes and lower grade stockpiles. Over the course of March 2023, lower grade commissioning material was processed with recovery rates averaging 84% for Ag, slightly above expectations at this stage of the commissioning.
Bear Creek Mining Corporation reported production and financial results from its Mercedes mine in Sonora for the period April 21, 2022 to December 31, 2022. The company mined 337,108 tonnes and processed 412,457 tonnes of 3.02 g/t Au and 3 g/t Ag to produce 34,628 Oz Au and 8,489 Oz Ag at cash and all-in-sustaining cost of USD $1,193 and USD $1,627 per Oz Au sold and streamed respectively. The company reported revenues of USD $61M .
ON FINANCING
Endeavour Silver Corp., entered into a Commitment Letter with Societe Generale and ING Bank N.V. for a senior secured debt facility for up to USD $120M to proceed with the construction of an underground mine and mill at its Terronera property in Jalisco.
ON RESOURCES AND DEVELOPMENT
Oroco Resource Corp., announced drilling results from its Santo Tomas project, Sinaloa. Drilling highlights include hole NO-44 with 0.83% Cu, 0.011% Mo, and 0.072 g/t Au (0.93% CuEq) over 352.5m (best hole drilled on the project to date); and hole NO-45 with 0.44% Cu, 0.011% Mo, and 0.035 g/t Au (0.50% CuEq) over 329.8m. The company has now completed its North Zone drill program in support of the planned Preliminary Economic Assessment (PEA).
GoGold Resources Inc., released results from the ongoing drilling program at Eagle Area within its Los Ricos South property in Jalisco. Drilling highlights include hole LRGAG-22-134 with 1.13 g/t Au, 69 g/t Ag (2.05 g/t AuEq or 154 g/t AgEq) over 36.9m, including 2.28 g/t Au and 134 g/t Ag (4.06 g/t AuEq or 305 g/t AgEq) over 16.5m, including 8.55 g/t Au and 824 g/t Ag (19.53 g/t AuEq or 1,465 g/t AgEq) over 1.3m; hole LRGAG-22-136 with 1.03 g/t Au and 65 g/t Ag (1.9 g/t AuEq or 142 g/t AgEq) over 53m, including 2.16 g/t Au and 56 g/t Ag (2.9 g/t AuEq or 218 g/t AgEq) over 20.2m, including 9.54 g/t Au and 490 g/t Ag (16.07 g/t AuEq or 1,205 g/t AgEq) over 0.7m; hole LRGAG-22-138 with 3.06 g/t Au and 193 g/t Ag (5.64 g/t AuEq or 423 g/t AgEq) over 27.3m, including 15.64 g/t Au and 908 g/t Ag (27.74 g/t AuEq or 2,081 g/t AgEq) over 1.4m, including 5.43 g/t Au and 563 g/t Ag (12.94 g/t AuEq or 970 g/t AgEq) over 1m; hole LRGAG-22-141 with 3.82 g/t Au and 114 g/t Ag (5.34 g/t AuEq or 400 g/t AgEq) over 28.4m, including 43.30 g/t Au and 99 g/t Ag (44.62 g/t AuEq or 3,346 g/t AgEq) over 0.9m, plus 2.10 g/t Au and 189 g/t Ag (4.61 g/t AuEq or 346 g/t AgEq) over 11.4m, including 9.43 g/t Au and 710 g/t Ag (18.89 g/t AuEq or 1,417 g/t AgEq) over 1.3m; and hole LRGAG-22-145 with 1.94 g/t Au and 272 g/t Ag (5.56 g/t AuEq or 417 g/t AgEq) over 42.2m, including 3.7 g/t Au and 700 g/t Ag (13.03 g/t AuEq or 977 g/t AgEq) over 14.1m, including 16.15 g/t Au and 5,740 g/t Ag (92.68 g/t AuEq or 6,951 g/t AgEq) over 0.5m. “These holes, combined with additional drilling in the Los Ricos South Main area, should add value to the upcoming updated Los Ricos South Mineral Resource and Preliminary Economic Assessment”.
Endeavour Silver Corp., announced its intentions to proceed with the construction of an underground mine and mill at the Terronera project in Jalisco. It will consists of a process plant with 2,000 tonne per day capacity and an initial capital expenditure cost of USD $230M, partially offset by a decrease in sustaining capital to USD $88.3M over the life of the mine. The company expects a 21-month construction period, including 3 to 6 months ramp up to full production with initial production expected in Q4, 2024.
Heliostar Metals Limited commenced drilling at its Ana Paula property in Guerrero following the re-scoping plans announced previously. The program will consist of 3,000 – 3,600m of drilling in 16 – 24 drill holes, to increase the size and grade of the resource and reserve, provide the geotechnical information required to complete underground mine planning, and provide metallurgical samples testwork designed to improve gold recovery and simplify the mill flow sheet.
ON DEALS AND CORPORATE ISSUES
Chesapeake Gold Corp., announced the appointment of its VP of Corporate Development and Investor Relations, effective May 29, 2023 (Metates project, Durango).
Riverside Resources Inc., appointed a new Independent Director and presented results from its annual meeting of shareholders (La Union project, Sonora).
Canasil Resources Inc signed an option agreement and an exclusivity agreement with Silver Dollar Resources Inc. Pursuant to the agreements, Silver Dollar will provide Canasil with a USD $200K non-interest-bearing loan in return for a two-month exclusivity period to conduct due diligence on the assets of Canasil and an option to earn a 100% interest in Canasil’s Nora property in Durango. Under the terms of the Nora Option, Silver Dollar can earn a 100% interest in the Property by incurring total exploration expenditures of USD $3M and making cash payments totaling USD $375K over five years. Upon earning a 100% interest in the Property, Silver Dollar will grant Canasil a 3% net smelter returns royalty ,with Silver Dollar having the right to buy back 1% of the royalty for USD $3M. After granting the royalty, Silver Dollar will also pay an annual royalty of USD $25K which will be offset against the 1% royalty buyback.
ON SOCIAL RESPONSIBILITY
No relevant news.
Content like what you have just read can be seen at https://gambusinoprospector.com/ and at LinkedIn’s Mexico Mineral Exploration Group.
On the picture above, Cu mineralization (chrysocolla) in a prospect in Chihuahua, Mexico. Photo by Miguel A Heredia.
During the 15th week of the year (April 10th to April 16th, 2023), 16 companies working in Mexico released news on their properties. One company informed on exploration at one of its properties, eight companies informed on Q1 2023 production results. One company closed a financing placement while a company opened another one. A company informed on the advance to take a property into production, one other reported drilling results at its main project. One company is exercising its option to acquire a property, while one other is extending the option on an exclusivity agreement. ON MEXICO ISSUES, calls for dialog with Congress are being made with urgency on the merits and negative implications of the proposed changes to the Mining Law. The federal government qualified Vulcan Minerals compensatory demand as unfounded. ON EXPLORATION, in Sonora, Tocvan Ventures provided results from a leach test at its Pilar property. ON MINING, Endeavour Silver, Guanajuato Silver Company, Fortuna Silver, Torex Gold, Gold Resource, Gatos Silver, Orla Mining and Bear Creek Mining released Q1 2023 production reports. ON FINANCING, Monumental Minerals and Excellon Resources announced the closing ($2.2 M) and opening (up to C$10 M) of financing rounds, respectively. ON RESOURCES AND DEVELOPMENT, Minera Alamos advances on the permitting process for mining at Cerro de Oro in Zacatecas. Vizsla Silver reported drilling results from its Panuco property in Sinaloa. ON DEALS AND CORPORATE ISSUES, Silver Dollar is exercising its option to acquire 100% interest on La Joya property in Durango. Radius Gold extended the exclusivity agreement term with Fresnillo PLC on its Plata Verde Project in Chihuahua. ON SOCIAL RESPONSIBILITY, no relevant news.
ON MEXICO ISSUES
On the proposed changes to the Mining Law. For the last two weeks there have been many declarations by mining industry members and representatives against many of the proposed changes. There is a widespread movement calling for open discussions of the many elements on this proposal that are to pose a grave threat to foreign and local investment on the industry, affecting a large population base and increased deleterious effects in the economy on the long run. The AIMMGM (Asociación de Ingenieros Mineros, Metalurgistas y Geólogos de México) is asking Congress to organize an open parliament on the subject to discuss the merits and negative implications of the proposed changes.
The Mexican federal government qualified Vulcan Minerals $1.9 billion compensatory demand as unfounded on its reply to Centro Internacional de Arreglo de Diferencias Relativas a Inversiones courtroom. Vulcan has been quarrying limestone in Quintana Roo for more than 30 years, and has been pointed by the government as the culprit of an ecological disaster.
Mexico’s Best Drilling intercepts on Q1 2023
ON EXPLORATION
Tocvan Ventures Corp. provided the results from a leach study from its Pilar property in Sonora. According to the results, 95 to 99% Au, 73 to 97% Ag can be recovered using “gravity concentration followed by agitated cyanide leach of the gravity tails”.
ON MINING
Endeavour Silver Corp. reported first quarter 2023 production of 1.62 M Oz Ag 9,342 Oz Au (or 9,342 Oz AgEq. At Guanaceví, in Durango, 102.4 K tonnes were milled at a rate of 1,138 tonnes per day (tpd), averaging 511 gpt Ag, 1.42 gpt Au, recovering 85.6% Ag, 89.6% Au, to produce 1.44 M Oz Ag, 4,188 Oz Au. At Bolañitos, in Guanajuato, 109.7 K tonnes were milled at a rate of 1,208 tpd, averaging 61 gpt Ag, 1.70 gpt Au, recovering 86.1% Ag, 86.8% Au, to produce 183.6 K Oz Ag, 5,154 Oz Au.
Guanajuato Silver Company Ltd. announced consolidated production results for the year 2022. Production from El Cubo mines complex, Valenciana mines complex and San Ignacio mine in Guanajuato involved 410.3 K tonnes mined, 418.8 tonnes milled, recovering 86.0% Ag, 84.5% Au, 88.7% Pb, 84.5% Zn, to produce 1 M Oz Ag, 11,174 Oz Au, 1.3 M Lb Pb, 1.9 M Lb Zn, or 2.13 M Oz AgEq, at cash cost $15.84 per Oz AgEq and AISC of $21.55 per Oz AgEq. At the end of 2022 the company had cash and cash equivalents of $8.8 M and $1.7 M of working capital.
Fortuna Silver Mines Inc. reported production results for the first quarter of 2023, including figures from its operations in Mexico. During the period the San Jose mine in Oaxaca produced 1.3 M Oz Ag, 8,231 Oz Au.
Torex Gold Resources Inc. reported Q1 2023 production from its El Limon-Guajes operations in Guerrero. During the period 10.2 K tonnes of ore per day (tpd) were mined from open pits, 93.7 K tpd of waste moved (waste to ore strip ratio of 9.2) and 1,738 tpd of ore were mined from underground for a total of 13,703 tpd processed at a grade of 3.50 gpt Au, recovering 87.8% Au to produce 122,918 Oz Au. “… the Company made over $75 million in tax payments including the annual payment of the 7.5% mining tax, corporate tax instalments, and true-up of taxes outstanding at the end of 2022”.
Gold Resource Corp. released production results from its Don David mine in Oaxaca in Q1 2023. During the period 117.8 K tonnes were milled at a rate of 1,420 tonnes per day, averaging 2.33 gpt Au, 94 gpt Ag, 0.37% Cu, 1.7% Pb, 3.9% Zn, to produce 7,171 Oz Au, 322.7 K Oz Ag, 336 tonnes Cu, 1,559 tonnes Pb, 3,837 tonnes Zn.
Gatos Silver Inc. announced production results for first quarter 2023 at its Cerro Los Gatos property in Chihuahua. During the period 260.4 K tonnes were milled at a rate of 2,894 tpd, averaging 329 gpt Ag, 3.93% Zn, 1.86% Pb, 0.30 gpt Au, recovering 88.3% Ag, 62.2% Zn, 88.6% Pb, 55.3% Au, to produce 2.43 M Oz Ag, 14.0 M Lb Zn, 9.5 M Lb Pb, 1,380 Oz Au. “… silver production is expected to be higher in the first half of 2023 than in the second half of 2023 based on sequencing of the mine plan. Zinc and lead production are expected to be higher in the second half of the year than in the first half.
Orla Mining Ltd. provided an interim operation update for Q1 2023. At the Camino Rojo Oxide mine in Zacatecas, during the period the company mined 3.13 M tonnes (waste to ore ratio 0.61) of which 1.18 M was moved waste, 1.65 M tonnes ore averaging 0.72 gpt Au and 0.30 M tonnes of low-grade ore averaging 0.29 gpt Au for stockpiling. Ore stacked was 1.77 M tonnes @ 0.80 gpt Au, to produce 25,910 Oz Au.
Bear Creek Mining Corp. announced production results for the first quarter of 2023. During the period 133.6 K tonnes were mined at its Mercedes mine in Sonora, 134.5 K tonnes milled, at a grade of 2.91 gpt Au, recovering 95.56% Au, to produce 12,025 Oz Au, 40.1 K Oz Ag. “Mercedes mine planning and development began the shift toward higher-grade deposits that utilize cut and fill mining methods during Q1 2023…”.
ON FINANCING
Monumental Minerals Corp. closed a non brokered private placement for gross proceeds of $2.2 M. The company paid aggregate finder’s fees of $110.3 K plus warrants (Jemi, Coahuila).
Excellon Resources Inc. announced a non-brokered private placement for aggregate gross proceeds of up to C$10 M. “… the net proceeds of the Offering are expected to be used to advance development of La Negra, fund exploration at La Negra and for general corporate purposes “(La Negra, Hidalgo).
ON RESOURCES AND DEVELOPMENT
Minera Alamos Inc. completed the necessary documentation to proceed with its Cerro de Oro project in Zacatecas permitting process. The company expects to conclude negotiations on a lending package for construction once the permits are received.
Vizsla Silver Corp. reported results from six holes at the southern extension of the Napoleon vein at its Panuco project in Sinaloa. Highlighted true width intercepts comprise 4.00 m[JC1] @ 590 gpt Ag, 5.15 gpt Au, 1.0% Pb , 4.4% Zn (including 0.98 m @ 2,025 gpt Ag, 15.74 gpt Au,, 1.7% Pb, 5.2% Zn); 6.10 m @ 156 gpt Ag, 3.63 gpt Au, 7.9% Pb, 6.6% Zn; 5[JC2] .00 m @ 99 gpt Ag, 1.44 gpt Au, 1.2% Pb, 5.1% Zn; 1.70 m @ 268 gpt Ag, 1.41 gpt Au, 0.2% Pb, 0.3% Zn; 3.05 m @ 157 gpt Ag, 2.55 gpt Au, 0.8% Pb, 5.1% Zn; 1.00 m @ 532 gpt Ag, 8.96 gpt Au, 1.5% Pb, 7.1% Zn; 10.65 m @ 54 gpt Ag, 0.93 gpt Au, 0.2% Pb, 0.8% Zn.
ON DEALS AND CORPORATE ISSUES
Silver Dollar Resources Inc. delivered a notice to First Majestic Silver Corp. exercising its option to acquire a 100% interest in La Joya property in Durango.
Radius Gold Inc. extend the term of the exclusivity agreement with Fresnillo PLC on its Plata Verde project in Chihuahua. The term of the agreement has been extended three months, implying Fresnillo is to cover US$157 K in payments to the underlying concession owners and landowners, while maintaining the commencement of drilling before 7 July 2023.
ON SOCIAL RESPONSIBILITY
No Relevant News.
On the image below: Quartz veined coarse grain intrusive rock in the Sonoran Desert. Picture by Jorge Cirett. Picture by Jorge Cirett.
Several companies reported really good silver intercepts from their properties in Mexico, with GoGold’s topping the chart with a whopping 55.0 m averaging 2,153 gpt Ag (69 Oz Ag per tonne), or 118,399 gpt*m, including 2.0 m @ 52,765 gpt Ag (1,695 Oz Ag per tonne, or 5.28% Ag) from its Los Ricos South project in Jalisco. Other companies commonly posting results over 5,000 gpt*m silver (160 Oz Ag per tonne) include Silver Tiger results fro El Tigre in Sonora (up to 22,564 gpt*m Ag), Vizsla’s results from Panuco in Sinaloa (up to 17,130 gpt*m Ag), GR Silver’s results from San Marcial in Sinaloa (up to 10,007 gpt*m Ag) and GoGold’s results from Los Ricos North in Jalisco (up to 7,801 gpt *m Ag).
With the exception of Media Luna, which is a skarn system, and Cordero, a complex intrusive/skarn/intermediate sulfidation epithermal deposit, the silver mineralization is set in structurally controlled intermediate to low sulfidation epithermal systems.
During the 14th week of the year (April 3rd to April 9th, 2023), at least 16 press releases were announced by companies working in Mexico, with five informing on exploration results, four reporting resources and developments of their properties, four disclosing deals and corporate issues, one communicating production and financial results, one commenting on Mexican Issues, and one announcing financing issues. ON MEXICO ISSUES, Silver Tiger was the only mining company reporting drilling intercepts in Mexico on the first week of April, 2023. ON EXPLORATION, In Sonora, Colibri reported assays results of sampling completed at its recently acquired El Plomo project, and Prismo released assay for 277 samples collected at its Los Pavitos project. In Chihuahua, Kingsmen expanded its land position at its Las Coloradas project in the southeast part of the Parral mining district. In Coahuila, Monumental reported assays results and proposed drill targets from its Jemi rare earth elements project. Minaurum provided an update on its corporate strategy to develop and acquire a pipeline of potential Tier One precious metals projects. ON MINING, GoGold reported Q1, 2023 production results from its Parral Tailings project in Chihuahua. ON FINANCING, Golden Minerals announced that it is selling gold-rich pyrite concentrates from its Velardeña properties on improved terms to a buyer in Manzanillo. ON RESOURCES AND DEVELOPMENT, Heliostar filed a technical report on an update of the 2017 pre feasibility study on the Ana Paula deposit in Guerrero, and announced re-scoping plans for its gold deposit. Avino reported metallurgical results from the testwork program on its oxide tailings project at its Avino property in Durango. Silver Tigre reported drill results from its El Tigre project in Sonora. ON DEALS AND CORPORATE ISSUES, Impact Silver closed the acquisition of the Plomosas mine in Chihuahua. Excellon announced the reversal of a USD $22M liability from its March 31, 2023 consolidated balance sheet (La Negra Mine, Queretaro). Teck and Agnico Eagle completed the San Nicolas project joint venture agreement. Silver Viper re-negotiated terms of the Rubi-Esperanza option agreement. ON SOCIAL RESPONSIBILITY, No relevant news.
ON MEXICO ISSUE
Silver Tiger Metals Inc., was the only mining company reporting drilling intercepts in Mexico on the first week of April, 2023. Details are shown in the table below:
ON EXPLORATION
Colibri Resource Corporation reported assay results of sampling completed at its recently acquired El Plomo project in Sonora. Twenty-five grab samples returned values > 1.0 g/t Au, including 6 with values > 5 g/t Au. “A total of 62 grab samples taken by Colibri returned Au assay values > 0.1 g/t Au. Channel sample values range from 8.03 g/t Au to 0.089 g/t Au over sample lengths (true widths) of 1.7m to 0.1 m. The occurrence and general distribution of higher-grade samples (> 1.0 g/t Au) evident in the historical work was validated with the due diligence sampling”.
Prismo Metals Inc., released assay for 277 samples taken at its Los Pavitos project in Sonora, from which 175 samples collected at the Santa Cruz area returned 0.5 g/t Au or more (several with values above 5 g/t Au over widths of 0.20 to 1m, and the best returned 20.3 g/t Au over 0.6m), and seven samples returned over 100 g/t Ag. Pathfinder elements As and Bi are also generally strongly anomalous. “At least six other target areas have been identified for additional detailed work to develop drilling targets for later this year. Drilling permits are in process and drilling is expected to begin in Q2 2023”.
Kingsmen Resources Ltd., expanded its land position at its Las Coloradas project in the southeast part of the Parral mining district in Chihuahua, with the acquisition of a new claim. The new 342 hectares claim is adjacent to its Las Coloradas project and covers prospective geology and structural and geophysical targets.
Monumental Minerals Corp., reported assay results and proposed drill targets from its flagship Jemi rare earth elements project in Coahuila. The company has completed four months of exploration consisting of detailed geological mapping, regional stream sediment sampling, ground radiometric geophysical surveys, and lithogeochemical sampling. “A total of 296 assays have been received for surface rock chip samples from Jemi Dykes and Veladora North. Samples that are both peralkaline and anomalous in REEs, Ta, and Nb (116 samples) define four discreet priority areas within Monumental’s mineral concessions”. “Three-dimensional modeling of airborne magnetic data indicates that a larger intrusive body and potential source for the mineralized dykes may lie at a shallow depth (less than 300 m) beneath the dykes. Based on these results, six preliminary drill targets have been chosen and a drilling program is anticipated to commence in June 2023”.
Minaurum Gold Inc., provided an update on its corporate strategy to develop and acquire a pipeline of potential Tier One precious metals projects, through a portfolio containing silver projects totaling 37,928 hectares; gold projects totaling 25,933 hectares; and copper projects totaling 12,856 hectares. “Key initiatives for each flagship project include: underground rehabilitation to be followed by mapping, sampling and underground drilling at its Alamos Silver project in Sonora. Results will serve as a basis for an initial resource estimate; at Santa Marta Copper-Gold Project in Oaxaca, an initial drill program has been designed and is awaiting a drill permit from SEMARNAT, the Mexican federal environmental permitting agency; and at Aurifero Gold Project in Sonora, a drill program to test deep targets has been designed and drill permits have been applied for, actively working to further consolidate the district. Minaurum expects to advance the remainder of its projects through strategic joint ventures in exchange for a combination of royalties, carried interests, and payments such as it received in option agreements with Fortuna Silver Corp. and Infinitum Copper Corp”.
ON MINING
GoGold Resources Inc., reported Q1, 2023 production results from its Parral Tailings project in Chihuahua. The company produced 173.7K Oz Ag, 2,106 Oz Au, and 320.3K Lb Cu (400.1K Oz AgEq).
ON FINANCING
Golden Minerals Company announced that it is selling gold-rich pyrite concentrates from its Velardeña properties on improved terms to a buyer in Manzanillo. The Company had previously planned to construct a BIOX facility at Velardeña in order to recover the gold in the pyrite concentrate. The Company is now evaluating the economics of a restart of the Velardeña operation without the need for major capital expenditures for the BIOX facility and ancillary equipment. Golden made its first shipment of 142 tonnes of previously produced and stockpiled gold-rich pyrite concentrate under the new terms last week and is currently processing 3,000 tonnes of previously mined and stockpiled mineralized material from the Santa Juana mine for future shipments.
ON RESOURCES AND DEVELOPMENT
Heliostar Metals Limited filed a technical report on an update of the 2017 pre feasibility study on the Ana Paula deposit in Guerrero, and announced re-scoping plans for its gold deposit. The Ana Paula deposit has a proven and probable mineral reserve of 14.1M tonnes with grades of 2.38 g/t Au and 6 g/t Ag for a total of 1.08M Oz Au and 2.5M Oz Ag contained. Ana Paula deposit is permitted for open-pit mining. The after-tax NPV (5% discount rate) of the Ana Paula Project is estimated assuming long-term metal prices of $1,600/Oz Au and $20/Oz Ag. The after-tax NPV (5%) of the Ana Paula Project is estimated at $278.6M with a projected after-tax IRR of 30.5%. “The Ana Paula re-scoping program has four key areas of technical study: engineering, metallurgical, resource modelling, and geotechnical. These studies are designed to evaluate Ana Paula as a high-grade underground mine with a simplified and de-risked milling flow sheet”.
Avino Silver & Gold Mines Ltd., reported metallurgical results from the testwork program on its oxide tailings project at its Avino property in Durango. The tailings project hosts gold and silver from past producing historic operations with a 5.7 M tonnes of measured and indicated resource grading 95 g/t of silver equivalent. The project consists of three types of tailings that are categorized by grade as well as identified in three stratigraphic layers within the deposit based on the time period when they were processed. They are, Ancient Oxides, Recent Oxides and Sulphides, and each type was sampled and tested separately. Metallurgical recoveries for the Ancient Oxides are 89.5% for Au and 90.4% for Ag; for the Recent Oxides are 85.8% for Au and 83.4% for Ag; and for the Sulphides are 82.8% for Au and 76.1% for Ag.
Silver Tigre Metals Inc., reported drill results from its El Tigre project in Sonora. Drilling highlights include hole ET-23-445 collared at the Sulphide Zone with 0.24 g/t Au, 130 g/t Ag, 0.16% Cu, 0.8% Pb, and 2% Zn (247 g/t AgEq) over 3.1im including 0.17 g/t Au, 305 g/t Ag, 0.31% Cu, 1.7% Pb, and 4.8% Zn (547 g/t AgEq) over 0.8m, plus 0.24 g/t Au, 115 g/t Ag, 0.58% Cu, 2% Pb, and 3.9% Zn (365 g/t AgEq) over 9.6m, including 0.59 g/t Au, 442 g/t Ag, 2.14% Cu, 7.6% Pb, and 12% Zn (1,270 g/t AgEq) over 1.6m, including 0.52 g/t Au, 857 g/t Ag, 1.74% Cu, 6.4% Pb, and 14.6% Zn (1,700 g/t AgEq) over 0.5m; and hole ET-23-448 collared at El Tigre Vein area, with 0.03 g/t Au, 485 g/t Ag, 0.33% Cu, 0.01% Pb, and 0.08% Zn (522 g/t AgEq) over 4.9m, including 0.04 g/t Au, 1,194 g/t Ag, 0.84% Cu, 0.03% Pb, and 0.2% Zn (1,285 g/t AgEq) over 1m, including 0.05 g/t Au, 1,560 g/t Ag, 1.14% Cu, 0.04% Pb, and 0.3% Zn (1,684 g/t AgEq) over 0.5m.
ON DEALS AND CORPORATE ISSUES
Impact Silver Corp., completed the share purchase and sale agreement with Consolidated Zinc Limited to close the acquisition of the Plomosas mine in Chihuahua. Terms of the agreement include a total purchase price of USD $6M consisting of USD $3M in cash and the balance in the form of Impact shares (a total of 11,441,647 shares will be issued), and a 12% net profit interest royalty on production from the Plomosas project to Consolidated. “Contractual restrictions have been applied to 75% of the share transfer component such that IMPACT Shares will be released from restriction in three equal tranches of 25% of the total number of shares issued to CZL, every 6 months, over 18 months from closing. 25% of the IMPACT Shares will be immediately held by CZL (subject to a statutory 4- month hold period from the date of issuance of the IMPACT Shares)”.
Excellon Resources Inc., announced the reversal of a USD $22M liability from its March 31, 2023 consolidated balance sheet, relating to the previously disclosed judgment against one of the Company’s subsidiaries in Mexico (La Negra Mine, Queretaro).
Teck Resources Limited and Agnico Eagle Mines Limited completed the joint venture agreement to advance the permitting and development of the San Nicolas project in Zacatecas. Agnico Eagle, through a wholly-owned Mexican subsidiary, has agreed to subscribe for a 50% interest in Minas de San Nicolás, S.A.P.I. de C.V. for USD $580M. The joint venture partners are planning to submit an Environmental Impact Assessment and Permit application for San Nicolás in the first half of 2023 and are targeting completion of a feasibility study in early 2024.
Silver Viper Minerals Corp., re-negotiated terms of the Rubi-Esperanza option agreement. An addendum of the agreement was signed on April 4, 2023, outlining an overall reduction in this year’s cash payment, and now including the issuance of shares as partial compensation. “The revised agreement provides for the issuance of USD $1.5M in Silver Viper shares issued on signing, followed by a cash payment of USD $200K in June of 2023. In order to complete this agreement, there is a scheduled cash payment of USD $200K, along with the issuance of USD $775K in Silver Viper shares during June of 2024.
ON SOCIAL RESPONSIBILITY
No relevant news.
Content like what you have just read can be seen at https://gambusinoprospector.com/ and at LinkedIn’s Mexico Mineral Exploration Group.
On the picture above, an onyx vein in a prospect in San Luis Potosi, Mexico. Photo by Miguel A Heredia.
During the first week of April 2023, only Silver Tiger released drilling results from properties in Mexico. These intercepts come from the El Tigre vein and the recently discovered Sulfide Zone, at El Tigre project in Sonora, known for its intermediate sulfidation epithermal mineralization.
