NI-43-101 Reports

The Mining and Exploration News in Mexico: Highlights on the Fourth Week of November 2023

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By Jorge Cirett                                             

During the 47th week of the year (November 19th to November 26th, 2023), companies working in Mexico posted 22 news releases. Four companies reported exploration advances on their properties, three companies released Q3 2023 reports, one on metallurgical test results and one more on new concentrate production. One company announced the repurchase of part of its shares, one a financing round, one an incentive warrant program and one more the payment of dividends.  One company released drilling results from a past producing mine, and one other filed a technical report on its property. One company reported on the acquisition of additional land adjacent to its mining operations, and two more on the appointment of directors. ON MEXICO ISSUES, the country has attracted US$2,737 M of direct foreign investment on mining this year.  ON EXPLORATION, in Sonora, Aztec Minerals has completed seven RC holes at Cervantes; Colibri Resource and Silver Spruce updated on project work at Diamante. In Chihuahua, Kootenay Silver released results from three holes at Columba. In Zacatecas, Radius Gold presented the results of the last drill hole at Tropico. ON MINING, Impact Silver, Bear Creek Mining and Guanajuato Silver presented Q3 2023 production results. Luca Mining presented results from metallurgical tests at Campo Morado. Golden Minerals begun to produce gold-bearing pyrite concentrates at Velardeña. ON FINANCING, Teck Resources intends to repurchase up to 7.8% of its shares. Oroco Resource launched a financing round for up to $2.5 M. Heliostar Metals is encouraging the early exercise of share purchase warrants. Alamos Gold declared a quarterly dividend.  ON RESOURCES AND DEVELOPMENT, Silver Storm released results from drilling at La Parrilla past-producing mine in Durango. Sonoran Desert filed a technical report on the Cuatro Hermanos property in Sonora. ON DEALS AND CORPORATE ISSUES, Coeur Mining signed a purchase agreement with Fresnillo PLC to acquire mining concessions adjacent to its mining operations at Palmarejo in Chihuahua. Osisko Development and Orla Mining announced the appointment of directors. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • According to information from the Economy Secretariat (Secretaría de Economía) Mexico has attracted US$2,737 M of direct foreign investment on mining this year, and US$9,089 M during the first five years of the present administration.
  • According to Camimex, in a note published on El Economista, three companies control 80% of mining production by Mexican enterprises: Grupo Mexico, Fresnillo PLC and Peñoles.

ON EXPLORATION

  • Radius Gold Inc. provided results from the last of hole of the 1,300 m diamond drilling program at the Tropico project in Zacatecas. Highlighted intervals comprise 9.02 m @ 0.11 gpt Au; 1.53 m @ 0.33 gpt Au; 4.58 m @ 0.22 gpt Au; 19.82 m @ 0.15 gpt Au. “Drilling defined a large gold mineralized breccia body that starts at surface and to date defined 250m down dip….. The drilling encountered wide zones of classic low sulphidation epithermal alteration, high level chalcedonic silica, banded stockwork and massive quartz veining, and breccias with gold mineralization, but not significant high grade mineralization”.
  • Aztec Minerals Corp. announced the completion of the first seven holes of the current drilling program at Cervantes, in Sonora. The eleven-hole reverse circulation drilling program envisages 1,650 m of which 963 m have already been completed in the California zone, while step-out drilling is to focus in expansion. Results are pending. “The gold mineralization is characterized by oxidized and unoxidized stockwork veinlets of A, B, and C types and disseminated sulfide sites, with silicification and phyllic alterations. Potassic alteration is present in places and is associated with mineralization as well”.
  • Colibri Resource Corp. and JV partner Silver Spruce Resources Inc. report the discovery of Au-Ag showings on the Diamante property in Sonora. Recent work in the property includes geological mapping, evaluation and sampling of historical showings, collection and assaying of 49 stream sediment samples and 60 outcrop samples. New mineralized showings in the northern and southern parts of the concession returned assays of 3.52 gpt Au, 121 gpt Ag; 0.122 gpt Au, 197 gpt Ag; 0.818 gpt Au, 5 gpt Ag; 0.749 gpt Au, 2 gpt Ag; 3.34 gpt Au, 20 gpt Ag. The Diamante property exhibits characteristics of “epithermal low to intermediate sulfidation Ag-Au (Pb-Zn), high sulfidation Au-Cu, and potential transition zones within and peripheral to porphyry style Au-Cu mineralization”.
  • Kootenay Silver Inc. announced results from three additional drill holes at its Columba project in Chihuahua. The drill program envisages 3,000 m on 12 to 15 holes to extend known mineralization on the “D” vein target area. Highlighted core length intervals comprise 29 m @ 208 gpt Ag, 0.2% Pb, 0.5% Zn (including 9.67 m @ 510 gpt Ag, 0.2 gpt Au, 0.5% Pb, 1.0% Zn; which includes 2.37 m  1,142 gpt Ag, 0.1 gpt Au, 0.9% Pb, 2.5% Zn), 10.1 m @ 152 gpt Ag, 0.2% Pb, 0.4% Zn; 3.1 m @ 308 gpt Ag, 0.1% Pb, 0.3% Zn (including 1.56 m @ 532 gpt Ag, 0.2% Pb, 0.4% Zn). “Columba hosts an extensive network of intermediate-style epithermal quartz, carbonate +/- barite veins aligned into two broadly cross-cutting orientations. Fieldwork to date has identified numerous mineralized structures across the project measuring up to 4 kilometres in length.”

ON MINING

  • Luca Mining Corp. announced results from its optimization program at the Campo Morado mine in Guerrero. A bulk concentrate is being produced with greater than 70% Cu recovery, up from the historical 35-40% recovery range. “Overall zinc recovery is expected to increase from 76% to 86% and the final concentrate grade increases from 46% to 56% zinc over the next 12 months…. Ausenco have conducted a range of laboratory testing, initially of zinc circuit feed samples, to study the potential for improved zinc circuit stage recoveries. With a series of changes to reagents and other operational parameters in flotation in the plant, overall zinc recovery increased from 75% to 82% and the final concentrate grade from 45% to 51% zinc”. Additional work is being conducted to produce clean and higher-grade Cu and Pb concentrates.
  • Golden Minerals Co. has begun producing gold-bearing pyrite flotation concentrate from its Velardeña properties in Durango. “The Company is processing material that has been stockpiled at Velardeña since the mines last operated in 2015”. Recent favorable market terms for Au bearing pyrite/arsenopyrite concentrate are now economic to process and sell.
  • Impact Silver Corp. announced its financial and operating results for the third quarter 2023. At Zacualpan, in Estado de Mexico, throughput was 37.2 K tonnes @ 162 gpt Ag. At Plomosas, in Chihuahua, Impact has completed the final steps to get back online the 200 tpd zinc mine. “Exploration potential at Plomosas is exceptional with only 600m of the 6-kilometre-long structure assessed”. The company invested $3.8 M in exploration expenditures and mining assets, with a cash position at quarter-end of $8.9 M and working capital of $8.7 M.
  • Bear Creek Mining Corp. reported results for Q3 2023. At the Mercedes mine in Sonora, 123.5 K tonnes were mined @ 2.79 gpt Au, with 126.2 K tonnes processed averaging 2.40 gpt Au, recovering 93.4% Au to produce 9,155 Oz Au, 33.7 K Oz Ag. During the period the company entered into a restructuring agreement with Equinox Gold Corp. to convert a $26 M current liability into a non-current obligation by issuing a convertible promissory note at a competitive interest rate. A second restructuring agreement was signed with Sandstorm Gold Ltd. to reduce near-term Au and Ag stream delivery obligations and refinance and extend debt. A C$9.5 M private placement was completed also during the period. Mining methods have been changed to sub-level caving at the San Martin deposit and sub-level stoping at the Marianas deposit. Average mining costs have decreased from $80.84 per tonne mined to $68.37 during the year (15% decrease). The Mercedes structural trend has contributed with “over 580,000 ounces of gold to the mine’s historical production since 2011”. Production from the San Martin deposit increased from 400 tpd to almost 600 tpd during Q3 and is expected to reach 800 tpd during Q4 2023.
  • Guanajuato Silver Company Ltd. released financial and operating results for Q3 2023. Consolidated production from Valenciana and El Cubo mines in Guanajuato and from Topia in Durango comprises 134.9 K tonnes mined, 132.5 K tonnes milled, to produce 425.5 K Oz Ag, 3,441 Oz Au, 935.8 K Lb Pb, 857.7 K Lb Zn, or 787.1 K Oz AgEq at cash cost $20.79 per Oz AgEq and an AISC of $26.22 per Oz AgEq.
  • Sailfish Royalty Corp. announced operating and financial results for Q3 2023. No information was provided on the Gavilanes property in Durango, Sailfish’s only significant exploration property in Mexico.

ON FINANCING

  • Teck Resources Ltd. is to establish a normal course issuer bid to purchase up to 40 M Class B shares from November 2023 to November 2024, representing 7.8% of the outstanding Class B shares, or 7.9% of the public float, as at November 15, 2023. “Teck is making the normal course issuer bid because it believes that the market price of its Class B Shares may, from time to time, not reflect their underlying value and that the share buy-back program may provide value by reducing the number of shares outstanding at attractive prices. All repurchased shares will be cancelled” (San Nicolas, Zacatecas).
  • Oroco Resource Corp. announced a non-brokered private placement to raise gross proceeds of up to $2.5 M (Santo Tomas, Sinaloa).
  • Heliostar Metals Ltd. updated on its incentive warrant program designed to encourage the early exercise of share purchase warrants. To date, holders of 14.37 M outstanding warrants have committed to participate in the warrant incentive program, which if exercised would result in gross proceeds of $4.6 M (Ana Paula, Guerrero).
  • Alamos Gold Inc. declared a quarterly dividend of US$0.025 per common share. Alamos has paid dividends for 14 consecutive years, during which time $324 M has been returned to shareholders through dividends and share buybacks, including $40 M thus far in 2023 (Mulatos, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Silver Storm Mining Ltd. released results from two more holes at La Parrilla, in Durango. Highlighted core length intervals comprise 0.82 m @ 419 gpt Ag, 0.53 gpt Au, 0.09% Cu, 12.3% Pb, 10.7% Zn; 0.44 m @ 200 gpt Ag, 0.19 gpt Au, 0.10% Cu, 6.6% Pb, 8.8% Zn; 1.77 m @ 25 gpt Ag, 4.07 gpt Au, 0.06% Cu, 0.1% Pb; 2.28 m @ 67 gpt Ag, 0.04 gpt Au, 0.02 % Cu, 3.1% Pb, 3.2% Zn; 8.72 m @ 125 gpt Ag, 0.04 gpt Au, 0.06% Cu, 2.4% Pb, 4.8% Zn; 1.05 m @ 322 gpt Ag, 0.16 gpt Au, 0.07% Cu, 9.5% Pb, 15.8% Zn. One of these high-grade intercepts is 97 m below the last mine development, while another high-grade replacement zone was identified. An unusual tourmaline breccia pipe was intersected, returning 1.77 m @ 4.07 gpt Au. “Drill results from the Quebradillas mine have enhanced our understanding and confidence that the La Parrilla Mine can be brought back online. In 2024, Silver Storm will proceed with technical studies targeting the re-establishment of mining operations in 2025.”
  • Sonoran Desert Corp. filed the NI 43-101 compliant technical report on the Cuatro Hermanos project in Sonora. The Mineoro Explorations LLC produced report states mineralization is of Porphyry Cu-Mo style associated to a porphyry intrusive complex hosted in an andesitic volcanic sequence, with Cu-Mo mineralization forming subvertical orebodies related to magmatic breccias and possibly tabular bodies of more than 3 Km along strike. Modelling suggests the Main and West zones might be connected, and that deeper drilling is needed. Recommended activities include relogging of core and RC drilling chips from the 2007-2008 campaigns, check assays on 10% of the pulps, drilling the West zone at 100 m spacing, deeper drilling, twinning of some holes, RC drilling and column leach test on the South Conglomerates (Exotic Cu target), begin metallurgical testing of oxides and sulfides, tie surface access agreements and commence permitting for drilling.

ON DEALS AND CORPORATE ISSUES

  • Coeur Mining Inc. signed a purchase agreement with Fresnillo PLC to acquire mining concessions adjacent to the Palmarejo complex in Chihuahua. The concessions comprise 2,833 ha, including the southeast extension of the Independencia and Nacion deposits, currently being mined at the Palmarejo property, and to the northeast a concession that surrounds “multiple targets containing mineralization and historic resources that were added through the 2015 acquisition of Paramount Gold and Silver. The terms of the transaction include a $10 M payment upon closing, an additional $10 M one year after closing and an additional $5 M two years after closing. The concessions will be subject to a royalty payment of $25 per Oz for each new Oz AuEq of resource discovered between 450 K and 2 M Oz AuEq.
  • Osisko Gold Royalties Ltd. announced Mr. Sean Roosen resigned as a director in order to focus on his role as CEO and Chair of the Board of Directors of Osisko Development Corp. (San Antonio, Sonora).
  • Orla Mining. Ltd. appointed Mr. Rob Krcmarov as an independent director of the company (Camino rojo, Zacatecas).

ON SOCIAL RESPONSIBILITY

  • No Relevant News.

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

CANDELARIA MINING ANNOUNCES FILING OF PINOS GOLD PROJECT NI 43-101 TECHNICAL REPORT

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Candelaria Mining – CANDELARIA MINING

October 16, 2018, Vancouver, British Columbia – Candelaria Mining Corp. (TSXV:CAND, OTC PINK:CDELF) (the “Company”) has filed a National Instrument 43-101 Technical Report regarding the preliminary economic assessment (“PEA”) for its Pinos Gold Project (“Pinos”), which was announced on September 13, 2018. The Pinos project is located at 140 kilometers east of the capital Zacatecas in the state of Zacatecas, Mexico. The project is district scale consisting of twenty-nine contiguous mining claims and covering 3,816 hectares, with easy access to infrastructure, labour and supplies.

Sierra Metals Announces Filing of NI 43-101 Technical Report on the Preliminary Economic Assessment Report for its Cusi Mine in Mexico With a 315% Output Expansion Yielding a 75% Internal Rate of Return

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Sierra-Metals-_03082018

TORONTO, Aug. 3, 2018 /PRNewswire/ – Sierra Metals Inc. (TSX: SMT) (BVL: SMT) (NYSE AMERICAN: SMTS) (“Sierra Metals” or “the Company”) has filed a technical report prepared in accordance with National Instrument 43-101 (“NI 43-101”) on the Cusi Mine (the “Report”). The Report supports the disclosure made by the Company in its news release dated June 18, 2018 entitled “Sierra Metals Announces Preliminary Economic Assessment Results for a 315% Output Expansion at its Cusi Mine in Mexico Yielding a 75% Internal Rate of Return.”

SIERRA METALS ANNOUNCES FILING OF NI 43-101 TECHNICAL REPORT ON THE BOLIVAR MINE IN MEXICO

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SierraMetals_06072018

Toronto, ON – July 05, 2018 – Sierra Metals Inc. (TSX: SMT) (BVL: SMT) (NYSE
AMERICAN: SMTS) (“Sierra Metals” or “the Company”) has filed a technical report prepared in accordance with National Instrument 43-101 (“NI 43-101”) on the Bolivar Mine (the “Report“). The Report supports the disclosure made by the Company in its news release dated May 22, 2018 entitled “Sierra Metals Increases Mineral Reserve Estimate by 83% for its Bolivar Mine, Mexico”. There are no material differences in the mineral resources and reserves contained in the Report from those disclosed in the May 22, 2018 news release.

Highlights on the Fourth Week of March, 2018. Mining and Exploration News in Mexico

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030

On the picture above, take geologists to a mining museum, and this is what you get. Geologists Ruben Padilla, Barry Quiroz and Miguel Heredia at El Oro Museum in Estado de Mexico. Photo by Jorge Cirett.

By Jorge Cirett

During the 12th week of the year (March 19th to March 25th, 2018), at least 16 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, a gold nugget weighing 850 grams was found in northern Sonora. ON EXPLORATION, In Sonora, Colibri has begun drilling at El Pilar project; while Azure updated work on its Oposura project releasing new high grade drill results. Kootenay has drilled six of seven holes on one target of its La Cigarra project, other targets to follow. ON MINING, three companies, Primero Mining, Excellon and Sierra Metals presented financial and or production results for the fourth quarter and/or full year 2017. Santacruz Silver completed expansion of milling capacity at Veta Grande in Zacatecas.  ON FINANCING, Evrim received $3 M from the exercise of warrants.  ON RESOURCES AND DEVELOPMENT, Americas Silver presented an updated resource on its San Felipe property in Sonora. Almaden provided an update on work being done on the feasibility study at the Ixtaca project in Puebla. ON DEALS AND CORPORATE ISSUES, Alio Gold is to acquire all shares outstanding of Rye Patch, a company with several properties in USA. Bacanora Minerals extended the timetable for re-domiciling by a few days. Sonoro executed an option agreement on a group of properties adjoining its Cerro Caliche property in Sonora.

ON MEXICO ISSUES

  • A gold nugget weighing 850 grams was found in La Cienega area, south of Pitiquito in Sonora. The nugget was discovered using a metal detector by a local gambusino. Northwest Sonora is known by the presence of orogenic gold style deposits, like La Herradura, Nochebuena, La Choya, San Francisco and El Chanate. This type of ore deposits has produced large gold nuggets, of up to 12 kg in weight, with the most famous specimens coming from the El Boludo, La Cienega and Tajitos gold placers.

ON EXPLORATION

  • Colibri Resource Corp. has begun phase 1 of its 2018 drilling program on its Pilar property in Sonora. The program envisages up to 30 holes to be drilled focusing on modelling and extending the known mineralization of the Main Zone to the northwest and southwest along trend. “To date, Colibri has defined an in-house resource of 700 K tonnes @ 1.9 g/t Au”.
  • Kootenay Silver Inc. informed on advances on the current drill program at its La Cigarra property in Chihuahua. Six holes have been completed, and one more is in progress at La Borracha zone, which is the extension of the structure that hosts La Cigarra resource, and drilling has now tested 1,000 m of strike length beyond the resource. Results will be disclosed once all assays have been received. The next drill target is the newly identified Nogalera gold zone, with 8 holes planned on anomalous mineralization over more than 1,000 m of length. Once Nogalera has been drilled, the 104-Vein on the southern part of La Cigarra resource is to be drill tested.
  • Azure Minerals Ltd. updated on work being done at its Oposura project in Sonora. Drilling along strike of an outcrop carrying up to 59.6% Pb+Zn on the West Zone intersected high grade mineralization over an area of 400 x 400 m. Some of the best combined Pb + Zn intercepts returned 2.4 m @ 15.5%. 7.4 m @ 15.9%, 2.8 m @ 19.0%, 3.7 m @ 15.6%, 3.5 m @ 13.2%, 4.6 m @ 15.0%. To date drilling in the West Zone has comprised 64 holes for 4,936 m, with assay results received for 26 drill holes.

ON MINING

  • Primero Mining Corp. reported financial and operating results for 4Q and full year 2017. Primero commenced a strategic review process that resulted in the sale of the Cerro del Gallo project (Guanajuato) in November 2017, and the entering into an arrangement agreement whereby First Majestic will acquire all issued and outstanding common shares of Primero. At San Dimas in Durango, 21,076 Oz Au and 1.32 M Oz Ag were produced during the fourth quarter. For full year 2017, San Dimas produced 111,376 Oz Au, 3.96 M Oz Ag. A strike at San Dimas in early 2017 stopped work for more than two months, significantly impacting yearly production levels.
  • Excellon Resources Inc. reported financial results for the fourth quarter and full year 2017. During the fourth quarter the Platosa mine in Durango produced 16.1 K tonnes, processing 18 K tonnes @ 424 g/t Ag, 3.8% Pb, 5.8% Zn, with recoveries of 90.3% Ag, 80.0% Pb, 82.2% Zn, to produce 206.4 K Oz Ag, 1.17 M Lb Pb, 1.67 M Lb Zn. For the year 57.2 K tonnes were produced, while milling 55.6 K tonnes @ 456 g/t Ag, 4.4% Pb, 5.7% Zn, with recoveries of 90.5% Ag, 82.1% Pb, 80.1% Zn, producing 668 K Oz Ag, 4.09 M Lb Pb, 4.60 M Lb Zn. During 2017 the optimization plan was completed at the Platosa mine, resulting in dry mining conditions that increased production and lowered the costs. Total cash cost per Ag Oz decreased to $10.38, with an AISC of $21.89. All in sustaining cost was $15.84 per Ag Oz for the fourth quarter and $21.89 per Ag Oz for the year.
  • Santacruz Silver Mining Ltd. informed that expansion of milling capacity at its Veta Grande project to 750 tpd (tonnes per day) has been completed. The mill is currently operating at 450 tpd, and full capacity operations are expected to be achieved early in the second quarter 2018. Santacruz now will focus in the consolidation of underground operations.
  • Sierra Metals Inc. reported fourth quarter and year end 2017 financial results, without separating figures for its operations in Mexico. Production at Bolivar is expected to reach 3,000 tpd in Q1 2018 and 3,500 tpd in the second half of 2018. An update in resources is expected in the coming months. At Cusi production is being ramped up to the 650 tpd Mal Paso mill capacity by Q2 2018. The installation of another mill is expected to take production to 1,200 tpd by 2019. At the end of the period the company had 23.9 M in cash and cash equivalents.

ON FINANCING

  • Evrim Resources Corp. received $3.06 M from the exercise of common share purchase warrants, representing 98% of the warrants issue dated December 16, 2015. As a result, Evrim’s current cash position approximates $5.5 M (Cerro Cascaron, Chihuahua).

ON RESOURCES AND DEVELOPMENT

  • Americas Silver Corp. provided an update on the mineral resource estimate at the San Felipe project in Sonora (optioned from Hochschild in early 2017). Of 342 holed drilled by four companies since 1998, 294 are within La Ventana, San Felipe, Transversales and Las Lamas deposits which host the current resource. The new resource contains 4,685 K tonnes @ 5.4% Zn, 2.5% Pb, 61 g/t Ag in the indicated category and 2,008 K tonnes @ 3.6% Zn, 1.4% Pb, 48 g/t Ag in the inferred category. These resources host 560 M Lb Zn, 256 M Lb Pb, 9.1 M Oz Ag; 158 M Lb Zn, 63 M Lb Pb, 3.1 M Oz Ag respectively.
  • Almaden Minerals Ltd. updated on work related to the feasibility study (FS) at the Ixtaca project in Puebla. Work underway includes a resource model update, metallurgy testwork, engineering design, optimization studies, work to move the Rock Creek processing plant to Ixtaca, construction planning, geotechnical site investigation and water management studies. Almaden is also preparing an environmental impact assessment study (Manifiesto de Impacto Ambiental, or MIA) for Ixtaca.

ON DEALS AND CORPORATE ISSUES

  • Alio Gold Inc. and Rye Patch Corp. entered on an arrangement under which Alio Gold (San Francisco, Sonora; Ana Paula, Guerrero) is to acquire all the outstanding shares of Rye Patch (Florida Canyon, Nevada; Lincoln Hill, Nevada). The offer values Rye Patch outstanding equity at C$128 M. The transaction is expected to close on or about May 25, 2018.
  • Bacanora Minerals Ltd. announced that the proposed timetable for the proposed Re-domicile has been changed to 26 March 2018.
  • Sonoro Metals Corp. executed a formal option agreement with a Tucson, Arizona resident to acquire a 100% interest in the 403.5 ha Rosario group of concessions, adjacent to its Cerro Caliche property in Sonora, thus increasing the land holdings of the project to 1,455 ha. The option agreement entails a total consideration to the vendor of US$1.6 M, payable in escalating cash installments over 72 months, and a 2% NSR which can be bought for US$1 M for each percentage point. The initial US$60 K was paid on execution. Total drilling in the two properties before 2008 is 10,118 m in 101 holes.

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

 

 

Highlights on the Fourth Week of October, 2017. Mineral Exploration in Mexico

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During the 43rd week of the year (October 23rd to October 29th, 2017), at least 30 press releases were announced by companies working in Mexico, including five quarterly reports. ON MEXICO ISSUES: Almost 70% of the silver production in Mexico comes from Zacatecas, Durango and Chihuahua. ON EXPLORATION: eight companies disclosed exploration efforts during the week: In Sonora Azure updated work on Oposura, Sara Alicia and Alacrán projects; SilverCrest released high-grade assays from sampling rehabilitated workings on Las Chispas. In Chihuahua Endeavour confirmed high–grade silver mineralization within an historical resource at Veta Colorada; Golden Minerals released high-grade intercepts from at its Santa Maria property; Mammoth Resources plans to commence a drill program at its Tenoriba property. In Sinaloa, Auxico provided sampling results from a trench at its Zamora project. In Zacatecas Defiance Silver provided results from drilling at San Acacio. In Oaxaca, Gold Resource disclosed drill results from Altagracia.  ON MINING: Agnico Eagle, New Gold, Coeur Mining, Goldcorp and Capstone reported third quarter results. In Chihuahua Sierra Metals announced increased recoveries from its mills at Cusi and Bolivar; Consolidated Zinc presented a Scoping Study on its Plomosas property. In Durango, Argonaut reached commercial production at San Agustin. In Guerrero, Telson reached 1,400 tpd processing at Campo Morado; Alio Gold presented drilling results of two confirmation holes at Ana Paula, and granted the development contract for the 1,200 m decline. ON FINANCING: Azure is proposing a 20 to 1 share consolidation program. ON RESOURCES AND DEVELOPMENT: Bacanora presented its yearly report. Goldcorp announced an update on mineral reserves and resources. Agnico informed that 16,800 m of drilling were performed during the last quarter at its El Barqueño property in Jalisco. Oceanus filed at SEDAR the technical report on the new resource estimate on El Tigre property in Sonora. ON DEALS AND CORPORATE ISSUES: Alamos Gold and Richmont Mines have been granted an interim order from the Quebec Superior Court. Canuc Resources acquired an important concession on its San Javier project in Sonora. Colibri Resources is to retain the investor relations contractor and marketing services on a deal involving a cash payment and shares. Minera Alamos and Vista Gold entered into an acquisition agreement on Vista’s Guadalupe de Los Reyes project in Sinaloa.

ON MEXICO ISSUES

  • On Mexican Silver Production, Zacatecas has 40.8% participation, Durango 14.0% and Chihuahua 13.9%. Located in Zacatecas the Saucito mine is the largest primary silver producer in the world, generating 13% of the Mexican production. Silver production in Zacatecas decreased 11.5% in 2016, due mainly to lower grades at Peñasquito. In Durango, production decreased 23.7% by work interruptions at San Dimas and lesser output from Guanaceví. Construction of the La Preciosa (Durango), Pitarrilla (Durango), El Gallo II (Sinaloa), Cordero (Chihuahua) and Cerro del Gallo (Guanajuato) projects still await better market conditions to go ahead.

ON EXPLORATION

  • Endeavour Silver Corp. informed that drilling has confirmed high grade silver mineralization within the Argentina-Remedios area of the Veta Colorada project. IMMSA operated the Veta Colorada mine until 1990, and left a 32.1 M Oz Ag historical resource contained in 4.0 M tonnes @ 248 g/t Ag. “Twenty-one drill holes totaling 6,928 metres (m) of core were drilled to test the portion of the historic resource located within the Argentina-Remedios area of the Veta Colorada…. The drill holes were spaced at approximately 100 m centres over an area 400 m long by 400 m deep”. True width intercepts highlighted contain 2.2 m @ 213 g/t Ag; 3.0 m @ 1,562 g/t Ag (including 0.5 m @ 8,070 g/t Ag); 2.3 m @ 248 g/t Ag; 9.3 m @ 457 g/t Ag; 7.0 m @ 344 g/t Ag;   2.3 m @ 4,641 g/t Ag (including 0.6 m @ 13,117 g/t Ag); 7.5 m @ 448 g/t Ag; 1.5 m @ 230 g/t Ag; 4.6 m @ 521 g/t Ag; 6.4 m @ 239 g/t Ag; 1.1 m @ 200 g/t Ag; 1.0 m @ 230 g/t Ag. A new resource estimate is to be released on the first quarter of 2018.
  • Auxico Resources Canada Inc. provided sampling results from a single trench on the Aguamas zone of its Zamora project in Sinaloa. The trench returned 50 m @ 0.85 g/t Au, including 3 m @ 13.07 g/t Au. The trench is within 100 m of the Aguamas mine historical workings, where recent sampling returned 14.9 g/t Au, 192 g/t Ag; 34.0 g/t Au, 98 g/t Ag. On these workings a series of quartz veins at multiple angles cut a silicified volcanic breccia.
  • Golden Minerals Co. released high-grade intercepts from the first six holes of a drill campaign on its Santa Maria property in Chihuahua. Intercepts include true width results of 1.06 m @ 604 g/t Ag, 0.84 g/t Au, 0.2% Pb, 0.1% Zn; 0.80 m @ 255 g/t Ag, 0.77 g/t Au, 1.6% Pb, 1.5% Zn; 2.50 m @ 431 g/t Ag, 0.29 g/t Au, 0.5% Pb, 1.0% Zn; 2.50 m @ 217 g/t Ag, 0.49 g/t Au, 0.6% Pb, 0.2% Zn; 0.40 m @ 164 g/t Ag, 0.40 g/t Au, 0.6% Pb, 3.8% Zn; 2.36 m @ 310 g/t Ag, 0.77 g/t Au, 0.4% Pb, 0.9% Zn. These holes potentially extend the strike dimension of the vein resource 110 m to the east, with the remaining drill holes to test an additional 250 m on the same direction.
  • Defiance Silver Corp. provided results from its phase 1 drill program at its San Acacio project in Zacatecas. Highlighted intercept results: 17.0 m @ 110 g/t Ag, 0.13 g/t Au, 0.1% Pb, 0.3% Zn (including 8.1 m @ 222 g/t Ag, 0.22 g/t Au 0.2% Pb, 0.5% Zn); 16.7 m @ 101 g/t Ag, 0.75 g/t Au, 0.1% Pb, 1.8% Zn (including 3.2 m @ 419 g/t Ag, 0.82 g/t Au, 0.1% Pb 0.3% Zn); 6.1 m @ 138 g/t Ag, 0.80 g/t Au, 0.2% Cu, 1.3% Pb, 1.9% Zn; 3.6 m @ 211 g/t Ag, 0.14 g/t Au, 0.1% Pb, 0.2% Zn; 7.4 m @ 159 g/t Ag, 0.52 g/t Au, 0.8% Pb, 1.8% Zn; 7.25 m @ 631 g/t Ag, 0.43 g/t Au, 0.1% Pb, 0.2% Zn; 0.7 m @ 432 g/t Ag, 0.24 g/t Au, 0.2% Pb, 0.6% Zn; 0.75 m @ 331 g/t Ag, 0.10 g/t Au, 0.1% Pb, 0.3% Zn; 2.1 m @ 283 g/t Ag, 0.17 g/t Au, 0.4% Pb, 0.7% Zn; 0 m @ 231 g/t Ag, 0.51 g/t Au, 0.4% Pb, 1.7% Zn; 3.0 m @ 372 g/t Ag, 0.10 g/t Au, 0.2% Pb, 0.4% Zn. The Veta Grande system pinch and swells along strike, with 4.4 km of the 5.6 km Defiance holdings having not seen production or modern exploration in a vein system that has produced close to 200 M Oz Ag.
  • Gold Resource Corp. disclosed drill hole results from the Alta Gracia drill program in Oaxaca. Alta Gracia hosts the Mirador mine, being 16 km NW from Gold Resource’s El Aguila project. This drill program tested four vein structures that do outcrop at the surface. Highlighted drill results: 0.23 m @ 5.17 g/t Au, 2,990 g/t Ag; 1.06 m @ 1.36 g/t Au, 453 g/t Ag; 1.47 m @ 2.29 g/t Au, 708 g/t Ag; 3.83 m @ 1.13 g/t Au, 194 g/t Ag; 0.98 m @ 0.69 g/t Au, 1,030 g/t Ag; 1.29 m @ 4.33 g/t Au, 1,710 g/t Ag; 1.72 m @ 1.40 g/t Au, 820 g/t Ag; 0.77 m @ 1.13 g/t Au, 690 g/t Ag.
  • Azure Minerals Ltd. announced its quarterly activity report. Oposura in Sonora was acquired, with drill results confirming the potential to host a high grade Zn-Pb-Ag deposit and a 7,000 m resource definition drill program in progress with two drill rigs currently in the property. The Sara Alicia project was acquired in Sonora, with rock chip sampling returning high grade gold and cobalt grades. An exploration 450 m drilling program is in progress. At Alacrán project, also in Sonora, a 5,000 m drilling campaign undertaken by earn-in partner Teck, commenced with three drill rigs operating, targeting epithermal and porphyry copper mineralisation at Loma Bonita, Cerro San Simon and Cerro Colorado areas.
  • Mammoth Resources Corp. plans to commence a diamond drill program from 8 to 24 holes at its Tenoriba project in Chihuahua. The drill targets were selected on a combination of surface geology, trace element geochemistry, gold bearing samples, PIMA sampling results, ground mag and induced polarization surveys and previous drilling by another company. Petrographic work has showed the mineralization to occur as free gold, and metallurgical testing on core material has shown gold recoveries to attain up to 100% on shallow intervals (dominated by oxides), and recoveries of 65% to 72% on the deeper intervals. To note is that the drill contractor accepted to be paid up to 60% of the cost of the program in shares of Mammoth. Core length mineralized intervals on previous drilling include 39.7 m @ 0.44 g/t Au; 34.4 m @ 1.03 g/t Au; 12.0 m @ 0.64 g/t Au.
  • SilverCrest Metals Inc. released additional underground channel sample results from its Las Chispas project in Sonora, where the company is currently exploring nine of the nineteen known veins. The channel sampling in the newly rehabilitated historic underground workings on Las Chispas vein, defining continuous unmined areas with bonanza grades. Composited intervals include an average of 2.9 m @ 5.8 g/t Au, 1,024 g/t Ag over 20 m of length; 3.0 m @ 2.2 g/t Au, 286 g/t Ag over 50 m of length; 3.0 m @ 4.0 g/t Au, 551 g/t Ag over 20 m of length; 5.0 m @ 1.8 g/t Au, 246 g/t Ag over 40 m of length; 4.9 m @ 4.9 g/t Au, 632 g/t Ag over 35.5 m of length. Individual samples as high as 1.1 m @ 15.8 g/t Au, 1,860 g/t Ag; 1.0 m @ 20.6 g/t Au, 2,082 g/t Ag; 0.8 m @ 31.7 g/t Au, 4,390 g/t Ag; 0.8 m @ 28.0 g/t Au, 2,930 g/t Ag are included in those intervals. So far SilverCrest has drilled 35,000 m in 141 holes in the project.

ON MINING

  • Telson Resources Inc. initiated ore processing at Campo Morado in Guerrero, at an approximate rate of 1,400 tonnes per day (tpd). “The first two years of production are planned to be mined from the G9 and El Largo ore bodies in areas of elevated gold and silver values within polymetallic base metal zones having average grades of 1.8 g gold/t, 142.7 g silver/t, 3.99% zinc, 0.62% copper and 1.07% lead”. Metallurgy tests have resulted in new processes added, including the removing of carbon organic matter and new types of reagents. The plan is to increase the production rate to the mill’s capacity of 2,500 tpd over the next six to twelve months.
  • Alio Gold Inc. released results from the first two confirmation holes on its Ana Paula project in Guerrero. The 2,000 m drill program is to twin 11 holes to confirm previous drilling and to obtain samples for metallurgical testing. The holes intercepted 99.4 m @ 10.8 g/t Au; 74.0 m @ 6.2 g/t Au.
  • Argonaut Gold Inc. announced commencement of commercial production on October 1, 2017, on its San Agustin mine in Durango. The project was delivered on schedule and more than 20% under budget, on the initial capital estimate of $43 M.
  • Sierra Metals Inc. informed an increase on recoveries from its mills in Mexico, to an average level of 82% at its Piedras Verdes mill in the Bolivar mine and to 83% at its Malpaso mill in the Cusi mine, both in Chihuahua. Production at Bolivar is expected to reach 3,000 tonnes per day (tpd) in Q1 2018 through the commissioning of 13 new pieces of equipment. At Cusi, the focus in on completing access, development and production of the Santa Rosa de Lima zone, with wider structures and grades than the narrow veins being mined now. Currently selected higher grade material from the old mine and development ore from Santa Rosa de Lima is being sent to the mill. Tonnage from the Santa Rosa de Lima structure is to be gradually increased until the mill operates at its 650 tpd capacity. A geological reinterpretation led to the discovery of the Santa Rosa de Lima zone, which averages 3.8m @ 372 g/t AgEq after two drill campaigns totaling 29,500 m. (Note of compiler.- There are two very informative graphics on how the metallurgical recoveries were improved within the press release).
  • Agnico Eagle Mines Ltd. reported third quarter 2017 results, including figures from its Mexican operations, on which 15.9 M were spent in sustaining capital and 2.0 M in development. At Pinos altos in Chihuahua, 587 K tonnes were processed at a rate of 6,380 tpd @ 2.65 g/t Au, and total cash cost of $376 K per Oz Au. Exploration focused at the Madroño zone, immediately SE from the Creston Mascota pit. Selected results: 15.8 m @ 4.3 g/t Au, 23 g/t Ag (including 4.2 m @ 10.6 g/t Au, 55 g/t Ag); 6.7 m @ 1.0 g/t Au, 11 g/t Ag; 11.3 m @ 1.7 g/t Au, 11 g/t Ag; 9.8 m @ 1.0 g/t Au, 14 g/t Ag; 10.9 m @ 0.9 g/t Au, 12 g/t Ag; 5.8 m @ 3.0 g/t Au; 16.5 m @ 5.8 g/t Au, 68 g/t Ag; 22 m @ 1.3 g/t Au, 24 g/t Ag. At La India in Sonora, 1.54 M tonnes were processed at a rate of 16,762 tpd @ 0.69 g/t Au and total cash cost per Au ounce of $657. Drilling is ongoing at the Main Zone, El Realito, Cerro del Oro and El Cochi zones. Promising results from ongoing exploration have led to the search of location options to construct additional pad capacity.
  • New Gold Inc. released third quarter 2017 results, which includes the production of 7,951 Oz Au, 0.1 M Oz Ag from the residual leaching of the closed San Pedro mine in San Luis Potosi, at an All-in sustaining cost of $1,532 per Au Oz.
  • Coeur Mining Inc. reported third quarter 2017 results, including figures from its Palmarejo mine in Chihuahua, where 413.1 K tonnes @ 172 g/t Ag, 2.49 g/t Au were milled. Average recoveries were 83.6% for Ag and 83.1% for Au to produce 1.91 M Oz Ag, 28,948 Oz Au. Production reached the end of year target of 4,500 tpd during the period. As many as nine rigs were operating at Palmarejo, focused on resource expansion at the Nación–Dana deposit.
  • Alio gold Inc. has awarded the contract for developing the underground decline at the Ana Paula project JDS Energy and Mining to manage the contract and underground mining operation. The 1,200 m decline is expected to take seven months to complete, at a rate of 5-7 m per day, and cost of approximately $10 M. A definitive feasibility study (DFS) is currently under way, and expected to be completed in the second quarter of 2018.
  • Goldcorp Inc. presented the third quarter report for 2017, without including figures by project. The company produced 633 k Oz Au at an AISC of $827 per gold ounce.
  • Capstone Mining Corp. announced third quarter financial results, including figures from its Cozamin operation in Zacatecas, where 4,242 tonnes of copper were produced during the period, at all-in cost of $1.86 per Lb Cu. The signing of an agreement that provides access to Capstone to the lower depths of the adjoining Endeavour Silver claim to the south is providing access to a zone with higher grades and greater widths, some 580 m away from the current indicated resource of the Mala Noche Footwall Zone.
  • Consolidated Zinc Ltd. completed the Scoping Study on its Plomosas property in Chihuahua with positive results at a base case level. The study focused on mining the Tres Amigos resource (544 K tonnes @ 11.2% Zn, 2.1% Pb, 14 g/t Ag) on level 5 using existing infrastructure. Contractor mining is to be used with a cut and fill method on mineralization on which 90% to 95% Zn and up to 70% Pb recoveries have been achieved, to produce a concentrate free of penalized elements. The process is to include crushing, grinding, bulk flotation roughing and cleaning stages to produce a concentrate.

ON FINANCING

  • Azure minerals Ltd. has proposed a 20 to 1 consolidation, reducing the current shares on issue from 1.67 billion to 83.6 million. Shareholder approval is to be sought at the AGM on 20 November 2017. Cash balance at quarter end is $5.9 M (Oposura and Sara Alicia, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Bacanora Minerals Ltd. presented its annual financial results for the year ended on 30 June 2017. During the period Bacanora secured a strategic partnership with Hanwa Co. Ltd.; a feasibility study (FS) is to be completed in Q4 2017; lithium carbonate has been produced at the Pilot Plant since May 2016, enabling optimization of the beneficiation process; 4,000 m of infill drilling was completed to upgrade resources; acquired 50% interest on the Zinnwald Lithium project in Germany.
  • Goldcorp Inc. presented an update on its mineral reserve and mineral resource estimates to the end of June 2017, including figures from its Mexican operations. At Peñasquito in Zacatecas, proven and probable gold mineral reserves totaled 9.0 M Oz Au, compared with 10.0 M Oz Au in 2016. Mine depletion accounted for 0.7 M Oz Au, while higher input costs and updated metallurgical recoveries led to a change in cut-off grade, resulting in the reclassification of 0.4 M Oz Au into the measured and indicated mineral resource category. 0.22 M Oz Au stand in the inferred category. Reserves also include 545.6 M Oz Ag, 3,684 M Lb Pb, 8,927 M Lb Zn; Measured and Indicated resources (M&I) of 5 M Oz Ag, 1,270 M Lb Pb, 2,858 M Lb Zn; Inferred resources of 14.2 M Oz Ag, 85 M Lb Pb, 307 M Lb Zn.
  • Agnico Eagle Mines Ltd. reported approximately 16,800 m of drilling at El Barqueño, in Jalisco, during the last quarter. The focus has been on extending known deposits and testing other areas as Tecolote, El Rayo and Camino. Drilling has now extended the mineral resources over one km to the W of the Azteca-Zapoteca zone. Six rigs are operating on El Rayo, Cuauhtemoc, Pilarica, Zateca-Zapoteca and Socorro. Agnico believes in the potential to develop a series of open pits utilizing heap leach and/or mill processing similar to its Pinos Altos mine in Chihuahua.
  • Oceanus Resources Corp. has filed a 43-101 compliant Technical Report disclosing the mineral resource estimate announced in September on its El Tigre property in Sonora. The resource includes two open pit and two underground operations at the El Tigre and Fundadora veins. The total hard rock resource is 25.9 M tonnes @ 0.52 g/t Au, 19 g/t Ag, containing 436 K Oz Au, 15.7 M Oz Ag and 6.6 M tonnes @ 0.52 g/t Au, 89 g/t Ag as indicated and inferred resources respectively. The tailings resource is 939 K tonnes @ 0.27 g/t Au, 78 g/t Ag, containing 8 K Oz Au, 2.3 M Oz Ag and 1 K Oz Au, 254 K Oz Ag, as indicated and inferred resources respectively.

ON DEALS AND CORPORATE ISSUES

  • Alamos Gold Inc. and Richmont Mines Inc. have been granted an interim order from the Quebec Superior Court (Commercial Division) authorizing various matters, including the holding of special meetings of Alamos and Richmont shareholders to consider the proposed plan of arrangement whereby Alamos will acquire all of the issued and outstanding shares of Richmont, and the mailing of the joint information circular.
  • Canuc Resources Corp. entered into a definitive agreement to acquire the Carobens 151 hectares concession from Minerales y Carbones de Mexico S.A. de C.V. by issuing 150 K common shares (valued at US$50 K) and US$50 K in cash. “The newly acquired mining concession envelops existing land holdings to the northeast. Early exploration has determined that silver-gold mineralization strengthens to the northeast.”
  • Colibri Resources Corp. announced the retention of FronTier Consulting Ltd. to provide investor relations and marketing services. Under the 12-month period Colibri is to pay $110 K plus out-of-pocket-expenses, and grant 150 K stock options at an exercise price of $0.15. FronTier and its related companies currently own 1.34 M share purchase warrants of Colibri.
  • Minera Alamos Inc. entered into an option agreement with Vista Gold Corp. to acquire Vista’s subsidiary Minera Gold Stake S.A. de C.V., which owns the Guadalupe de Los Reyes project in Sinaloa. Guadalupe de Los Reyes has an indicated resource of 380 K Oz Au and 155 K Oz Au of inferred resources. The agreement includes US$6 M in staged payments: US$1.5 M on closing, US$1.5 M on each of the 12 and 24 month anniversary and a final purchase price of US$1.5 M on or before the 48 anniversary. A minimum 1% NSR will apply to gold production from a heap leach open pit, which could increase to 2% if gold prices exceed US$1,600 per ounce. The royalty is capped at a cumulative amount of US$2 M. Vista Gold retains the right to acquire a 49% non-carried interest in the development of underground gold resources, if Vista’s interest is diluted below 10% interest, an NSR like the one used to open pit mining is to apply.

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

Collage2

On the picture above, collage of mineralized rock fragments from a prospect on the Durango Altiplano. Photo by Jorge Cirett.

Highlights on the Third Week of May, 2017. Mineral Exploration in Mexico

/ Gambusino Prospector / Leave a comment

During the 20th week of the year (May 15th to May 21st, 2017), at least 27 press releases were announced by companies working in Mexico. ON EXPLORATION, In Chihuahua Kootenay has begun drilling at La Cigarra, whereas Levon started drilling at Cordero. In Zacatecas Alset has sent the first drill samples for assay and Defiance commenced a drill program at San Acacio. In Veracruz Mexican Gold announced one high grade gold drill intercept  at Las Minas.  ON MINING, Fortuna presented financial results 2016. Mexus keeps advancing to production at Santa Elena in Sonora. ON FINANCING, three companies announced private placements, or increased placements for $7.8 M. One company completed and offering to reduce paid interest on outstanding notes for 300 M. ON RESOURCES AND DEVELOPMENT, Alio announced a PFS on its Ana Paula project in Guerrero, while Almaden Minerals presented a PFS, on Ixtaca, in Puebla. Consolidated Zinc continues drilling to get a resource on its Plomosas mine in Chihuahua. ON DEALS AND CORPORATE ISSUES, SilverCrest Metals began trading at the OTCQX® Best Market, Fortuna is getting up to date with its SEC filings, Mexican Gold has bought two more concessions at its Las Minas project in Veracruz and Colibri received confirmation that it is to resume trading on May 18th.

ON MEXICO ISSUES

  • No relevant news.

ON EXPLORATION

  • Kootenay Silver Inc. has initiated a 7,500 m drill program at its La Cigarra project in Chihuahua. The program is to focus on the expansion of the current mineral resource by first targeting an 800 m expanse between Las Venadas and Las Carolinas zones.
  • Levon Resources Ltd. starts a 5,000 m core drilling campaign at its Cordero project in Chihuahua. The holes are being drilled in the Cordero felsic dome complex in the central portion of the resource, looking for better grades near the surface.
  • Alset Minerals Corp. has completed one drill hole and five auger holes at La Salada, the first of seven salars to be drilled in Zacatecas. Soil and brine samples were collected and sent for assay.
  • Mexican Gold Corp. announced that step-out drilling at the Cinco Señores zone, in its Las Minas project in Durango, has indicated a potential parallel mineralized zone. One hole intersected 2.0 m @ 10.8 g/t Au, 42 g/t Ag, 2.8% Cu.
  • Defiance Silver Corp. commenced a drill program at its San Acacio property in Zacatecas, with the aim to expand the current deposit. Previous drilling at Esperanza intersected 12.7 m grading 297 g/t AgEq, and at Almaden 8.3 m @ 278 AgEq. A third target to be tested is the Quartz-Pyrite Breccia. Previous drilling includes intercepts of 17.0 m @ 110 g/t Ag, 0.1 g/t Au (including 8.1 m @ 222 g/t Ag, 0.2 g/t Au); 16.7 m @ 101 g/t Ag, 0.75 g/t Au (including 3.2 m @ 419 g/t Ag, 0.8 g/t Au); 10.1 m @ 100 g/t Ag, 0.56 g/t Au. These intercepts display lead and zinc values of up to 1.9% and 4.6% respectively.

ON MINING

  • Fortuna Silver Mines Ltd. presented full year 2016 financial results, with a net income of $17.8 M on revenue of $213 M. At San Jose in Oaxaca 273 K tonnes were milled (3,103 tonnes per day, TPD) @ 225 g/t Ag, 1.69 g/t Au, recovering 92% Ag, 92% Au, to produce 1.82 M Oz Ag, 13,660 Oz Au at cash cost $1.85 and all-in sustaining cost $6.73 per silver ounce, net of by-product Au credits.
  • Mexus Gold US. has completed two holding ponds and a heap leach pad, commenced a cyanide drip system on the heap and started the Merryl Crowe recovery system at its Santa Elena mine in Sonora (not to mistake with First Majestic’s Santa Elena mine, also in Sonora). Smelting the first 250 pounds of precipitate is the next step to be accomplished in May.

ON FINANCING

  • Geologix Explorations Inc. intends to carry a private placement for proceeds of up to $1 M (Tepal, Michoacan).
  • Mexican Gold Corp. announced an increase on its private placement, from $1.5 M to $1.8 M (Las Minas, Veracruz).
  • New Gold Inc. announced that it has completed its offering of $300 million aggregate principal amount of 6.375% Senior Notes due 2025, intending to use the net proceeds to fund the redemption of its outstanding $300 million 7.00% Senior Notes due 2020 on or about June 3, 2017.
  • Southern Silver Exploration Corp. announced a private non-brokered placement intended to raise $5 M (Cerro Las Minitas, Durango).
  • Fortuna Silver Mines Ltd. announced that “The Company will not be proceeding with the brokered private placement announced on April 4, 2017 and April 27, 2017”.

ON RESOURCES AND DEVELOPMENT

  • Alio Gold Inc. announced the pre-feasibility study (PFS) results on its Ana Paula project in Guerrero. The report defines 13.4 M tonnes @ 2.36 g/t Au as proven and probable mineral reserves, containing 1.02 M Oz Au. The scope of the PFS involves an open-pit with a mine life of 7.5 years to produce 868 K Oz Au on an 85% recovery rate. A capital cost of $137.2 M and an NPV of $223 M and IRR of 34% after tax at $1,250/oz Au. “Mineralization occurs in the complex breccia, granodiorite, monolithic breccia, hornfels and limestoneshale. The bulk of the high grade mineralization at Ana Paula is centered on the complex breccia domain which is surrounded by a high-grade mineralized halo, mainly granodiorite. “
  • Almaden Minerals Ltd. has filed the pre-feasibility study (PFS) on its Ixtaca project in Puebla.
  • Consolidated Zinc Ltd. is drilling to determine the full scope and geometry of the Carola South and Tres Amigos zones, both with high-grade zinc recent results, as both areas are to be included in the upcoming resource update.

ON DEALS AND CORPORATE ISSUES

  • SilverCrest Metals Inc. has begun trading on the OTCQX® Best Market under its existing ticker symbol “SVCMF”, operated by OTC Markets Group, providing a better platform to reach U.S. investors (Las Chispas, Sonora).
  • Fortuna Silver Mines Inc. has filed its 2016 annual financial documents, complying with SEC requirements. The company still has to file the Q1 2017 financial statements, and is planning to comply by May 24th, 2017.
  • Mexican Gold Corp. Acquired two mining concessions at its Las Minas project in Veracruz. The company paid $150 K plus VAT for 100% interest on the properties, while the previous private owner is to retain 1.5% NSR, of which 0.5% can be purchased by $500 K. The Pueblo Nuevo concession covers 97.5 has with several historical underground mines, including one with 21 levels. The veins in marble and diorite are 100 to 300 m in length, and 0.50 to 3.0 m in width. Of three samples collected, one returned 11.99 g/t Au, 41 g/t Ag, 1.3% Cu over 1 m and one other 0.2 m @ 28 g/t Au, 14 g/t Ag. The 43 hectares La Luz concession covers an area prospective for skarn mineralization akin to the adjacent Las Minas area.
  • Colibri Resources Corp. has received confirmation from the TSX Venture Exchange that its shares will resume trading on May 18th.

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 below, incipient brecciation sealed by oxidized sulfide in a volcanic rock, Central Chiapas. Photo by Jorge Cirett.

Breccia, La Javia SE 2

Highlights on the Second Week of February, 2017. Mineral Exploration in Mexico

/ Gambusino Prospector / Leave a comment

During the 6th week of the year (6th to 12th February, 2017) at least 25 press releases were announced by companies working in Mexico, including the completion or starting of financing rounds by seven companies. ON EXPLORATION, in Sonora, Riverside presented drilling results from a porphyry copper target. In Zacatecas, Canasil presented results from the first hole of the present drilling campaign. Prospero Silver presented an exploration update of its properties in Chihuahua and Hidalgo. ON MINING, Marlin Gold released production figures for January, and US Antimony presented production estimates for 2016.  ON FINANCING, Six companies reported the opening or closing of financing rounds for a consolidated total of $529 M. The large majority of this amount is by Alamos Gold, Leagold and Fortuna Silver.  ON RESOURCES AND DEVELOPMENT, Leagold filed a technical report, Coeur presented resources estimates to 2016, Consolidated Zinc and Alamden presented drilling results and Mexus Gold an update on mine development.  ON DEALS AND CORPORATE ISSUES, Excellon made a deal on concentrate sales, Plata Latina closed the deal on one of its Guanajuato properties and Colibri confirmed its shares are still suspended.

ON MEXICO ISSUES

  • Silver Production. Six of the main silver producers anticipate a 15% increase of production on the metal for 2017 over 2016, from 88.6 to 102 M Oz Ag. The companies surveyed by Bnamericas include Fresnillo PLC, First Majestic Silver, Pan American Silver, Fortuna Silver, Coeur Mining and Endeavour Silver.

ON EXPLORATION

  • Prospero Silver Corp. provided an update on recent exploration work on its projects. At Petate (Hidalgo) has secured surface access and drill permits for 27 drill sites, with JV negotiations underway. At Pachuca Southeast (Hidalgo) Prospero is to present permit applications for four drill sites, after being cleared by the INAH (Mexican archeology agency). At Bermudez (Chihuahua) additional mapping and sampling has been completed, assay results are pending for 51 samples that will aid in drill site selection. Prospero has been field reviewing several sites for the past three months, and has two projects advancing to the staking stage.
  • Canasil Resources Inc. released results from its first drill hole on the current drilling campaign at its Esperanza project in Zacatecas. “This drill hole intersected an extended interval of banded quartz veins, veinlets and breccias hosted within fractured and brecciated volcanic rocks… ”. Results in this hole include true width (TW) intervals: 1.36 m @ 0.08 g/t Au, 23 g/t Ag, 2.0% Zn, 1.3% Pb; 1.67 m @ 0.11 g/t Au, 5 g/t Ag, 3.6% Zn, 0.5% Pb and 3.08 m @ 0.14 g/t Au, 21 g/t Ag, 2.6% Zn, 0.8% Pb. “The La Esperanza vein system has now been traced by drilling to a depth of 375 metres below surface and over a strike length of 245 metres and remains open for further expansion.”
  • Riverside Resources Inc. reported drill results with Antofagasta at Thor, Sonora. The four diamond holes totaled 1,335 m, with no Cu or Au intercepts over material widths; however,a large Laramide age porphyry style quartz-sericite-pyrite stockwork zone was encountered. The results of this program “justify additional exploration work… ”. Riverside and Antofagasta have reviewed the results and now plan to progress the project with Riverside as the operator.

ON MINING

  • Marlin Gold Mining Ltd. stacked 7,447 Oz Au during January at a grade of 1.87 g/t Au, in addition to a 485 K tonne stockpile @ 1.37 g/t. Gold recoveries during January averaged 231 ounces per day, at an expected cost below $290 per ounce. The company is accelerating mining to reach the southern part of the high grade HS zone by the third quarter of 2017.
  • United States Antimony Corp. reported production estimates for 2016 and 2015, which includes undisclosed figures from its Mexican operations. During 2016 the company benefited of the 46% antimony price increase from a low of $2.40 to $3.52 per pound by year end. During January 2017, 90 K Lb of Sb were shipped from two of its Mexican mines to the company’s Madero smelter. The alkaline leach plant has been tested, and the flotation mill is to begin test runs during February.

ON FINANCING

  • Almaden Minerals Ltd. closed a non-brokered private placement amounting $3.4 M. The proceeds are to be used to advance the Ixtaca deposit towards the completion of pre-feasibility studies, continue permitting work, continue exploration drilling, and for general working capital (Tuligtic, Puebla).
  • Galore Resources Inc. informed the company’s board of directors authorized management to proceed with a loan arrangement with a senior officer / director of the Company, whereby the Company will borrow USD$150 K. The Company is to settle also a CDN$51 K debt with a former related party by the issuance of shares (Dos Santos, Zacatecas).
  • Mammoth Resources Corp. is to proceed with a non-brokered private placement with the aim to accruing $150K to advance exploration activities on its Tenoriba property in Chihuahua.
  • Alix Resources Corp. announced the completion of the first tranche of a non-brokered flow through private placement for gross proceeds of $180.9 K, and additionally completed a non-brokered non-flow through private placement for gross proceeds of $395.7 K (Elektra, Sonora).
  • Alamos Gold Inc. has closed its previously announced deal offering for gross proceeds of US$250 M (Mulatos, Sonora; Esperanza, Morelos).
  • Fortuna Silver Mines Inc. completed a previously announced bought deal financing for gross proceeds of US$74.8 M (San José, Oaxaca).
  • Leagold Mining Corp. filed a preliminary prospectus with the securities regulatory authorities in each of the provinces and territories of Canada, except Quebec, in connection with its proposed distribution of subscription receipts (to be converted into shares). The cash required for the $279 M payment for Los Filos mine purchase (in Guerrero) is expected to be raised from the net proceeds from the Offering and the net proceeds from up to $200 M of term loan credit facilities.

ON RESOURCES AND DEVELOPMENT.

  • Mexus Gold US. continues to place mined material on the heap, with the first three meter lift nearing completion. Cyanide leach is expected to begin by the end of March.
  • Almaden Minerals Ltd. released drilling results within and immediately outside the amended PEA pit, including potential new zones of veining, at its Tuligtic property in Puebla. Intersects include 41.45 m @ 1.52 g/t Au, 117 g/t Ag; 11.3 m @ 1.56 g/t Au, 132 g/t Ag, 32.55 m @ 0.72 g/t Au, 17 g/t Ag; 18.45 m @ 1.66 g/t Au, 59 g/t Ag; 8.05 m @ 3.59 g/t Au, 329 g/t Ag; 0.75 m @ 17.7 g/t Au, 1,350 g/t Ag; 17.9 m @ 1.62 g/t Au, 162 g/t Ag; 61 m @ 0.53 g/t Au, 82 g/t Ag. Some of the high grade intervals included within those broader intercepts are: 4.6 m @ 6.68 g/t Au, 565 g/t Ag; 5.15 m @ 3.16 g/t Au, 273 g/t Ag; 1.10 m @ 17.2 g/t Au, 920 g/t Ag; 0.5 m @ 16.85 g/t Au, 3,120 g/t Ag; 2.0 m @ 12.8 g/t Au, 1,136 g/t Ag).
  • Consolidated Zinc Ltd. presented definition drilling results on its Plomosas mine in Chihuahua. True width intercepts include 1.65 m @ 25.7% Zn, 10.5% Pb, 64 g/t Ag; 0.45 m @ 18% Zn, 16.7% Zn, 104 g/t Ag; 2.98 m @ 3.7% Zn, 1.9% Pb, 19 g/t Ag. Three tenement applications were filed to protect adjoining ground to the Plomosas operations.
  • Coeur Mining Inc. announced year-end 2016 reserves and resources, which includes figures on its Palmarejo mine in Chihuahua and the La Preciosa project in Durango. At Palmarejo and La Preciosa consolidated reserves and resources amount to 78.6 M Oz Ag, 1.087 M Oz Au and 118.6 M Oz Ag, 202 K Oz Au respectively.coeur-reserves-and-resources-20161-copia
  • Leagold Mining Corp. filed a NI 43-101 technical report on its Los Filos gold mine in Guerrero. The report describes the Los Filos mine operations, mineral reserves and resources, and a financial evaluation of the current mine. The M&I resources (inclusive of mineral reserves) stand at 422.5 M tonnes @ 0.85 g/t Au (11.479 M Oz Au) and 162 .6 M tonnes @ 0.76 g/t Au on the inferred resources category (3.995 M Oz Au). To the end of the third quarter 2016, the mine had produced 194 K Oz Au at AISC US$854 per ounce. “The Mine currently consists of two open pit mines, Los Filos and El Bermejal, an underground mine at Los Filos and the opportunity to develop an underground mine at El Bermejal as an expansion project. The open pit operation began commercial production in 2008. Gold is recovered from crushed and run-of-mine ore via a conventional, low cost heap leach process.”

ON DEALS AND CORPORATE ISSUES

  • Excellon Resources Inc. negotiated offtake arrangements for 2017 with two purchasers for its lead-silver and zinc concentrates, with material reduction (60%) in treatment and refining charges.
  • Plata Latina Minerals Corp. has formally entered into the option agreement with Fresnillo PLC respect the Naranjillo property in Guanajuato. Terms include an initial payment of US$400 K (paid), an aggregate US$1.65 M in five 6 month installments and US$500 K at the end of the term to acquire the property. Fresnillo must incur US$3.0 M in exploration expenditures over the term, and Plata Latina will retain a 3% NSR, of which 2% can be bought by US$1 M and the remaining 1% by US$5 M.
  • Colibri Resources Corp. announced that “trading in the shares of the company remains halted pending receipt and review of acceptable documentation regarding the Fundamental Acquisition of Canadian Gold Resources pursuant to Listing Policy 5.6 (d) of Exchange Policy 5.3.

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 below, quartz vein float on a rock fence in central Chihuahua, displaying silica banding, brecciation and re-sealing.

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Highlights on the Second Week of January, 2017. Mineral Exploration in Mexico

/ Gambusino Prospector / Leave a comment

During the 2nd week of the year (9th to 15th January, 2017) at least 31 press releases were announced by companies working in Mexico, including ten preliminary production reports for 2016. ON EXPLORATION, nine companies presented exploration updates, reflecting fairly strong activity in this new year. A company completed soil surveys in a project in Sinaloa, and another in Sonora. Also in Sonora, a project generator presented 2016 results and presented plans for the year, while a mining company released high grade gold drilling results on its brownfield and mine site exploration. In Zacatecas, results from surface exploration were received in one project, while another property received the needed drilling permit. On Nayarit, three more holes have been completed in a property. Anomalous but still interesting drilling results were received for a project in Guerrero. In Chihuahua, results from underground channel sampling in a silver project were released, whereas in Oaxaca, a polymetallic vein system continues to expand, showing high grade drill intercepts on a 200 m step out. ON MINING, Torex Gold, US Antimony, Endeavour Silver, HECLA Mining, Great Panther, Fortuna Silver, Timmins Gold, Capstone, Premier Gold, Pan American Silver, and Gold Resource presented 2016 production figures. A company presented the 2016 production figures, and plans for the coming years in a copper mine in Baja California Sur.  ON FINANCING, Two companies reported financing exercises for a total of $16.4 M in gross proceeds. ON RESOURCES, one company filed NI-43-101 reports for two projects in Sonora and Nayarit. ON DEALS AND CORPORATE ISSUES, an agreement on the sale of one of the major gold operations in Mexico has been completed. An agreement on the option of a past producing mine in Guanajuato was achieved between a junior Canadian company and a local Mexican enterprise. A company with projects in Sonora remains in operations suspension on the TSX.

ON EXPLORATION

  • Silver One Resources Inc. has completed soil geochemical surveys over its La Frazada property in Sinaloa and at Peñasco Quemado in Sonora. Results are pending.
  • Arian Silver Corp. released high grade results from its surface sampling program at its San Celso property in Zacatecas. Results include 1.05 m @ 396 g/t Ag, 1.8 m @ 146 g/t Ag, 1.1 m @ 116 g/t Ag, 2.2 m @ 286 g/t Ag, 0.5 m @ 350 g/t Ag, 0.45 m @ 347 g/t Ag and 1.15 m @ 254 g/t Ag.
  • Gainey Capital Corp. announced that two of three holes to be drilled on the La Higuerita mineralized zone at its El Colomo property in Nayarit have been completed and samples shipped for assay. Four more holes are to be drilled between the Higuerita and Nueva Victoria zones, which are 250 m apart.
  • Defiance Silver Corp. has received the necessary permits for drilling up to 60,000 m on its San Acacio property in Zacatecas. The permit is valid for 4.5 years. Defiance will now finalize its program for the 1.2 km of vein strike length that hosts the San Acacio deposit, and eventually explore the 4.4 km of the vein that has yet to see modern exploration.
  • Minaurum Gold Inc. released results from its 4,200 m program in its Biricu property in the Guerrero Gold Belt. Four of the nine holes intercepted anomalous gold values, including 17 m @ 230 ppb Au and 117.8 m @ 191 ppb Au. Surface mapping and drilling indicates the favorable contact between the Mezcala and Morelos Formations is shallower further north in the Punto Rojo area.
  • Premier Gold Mines Ltd. released 2016 exploration results from several areas at its Mercedes mine in Sonora, where 27,442 m of drilling were completed in 135 core holes during the period. At the Mercedes/Barrancas/Lagunas area drill intercepts include 8.2 m @ 11.9 g/t Au, 81 g/t Ag; 0.9 m @ 7.3 g/t Au, 260 g/t Ag. At Diluvio drill intercepts include 12.5 m @ 16.0 g/t Au, 13 g/t Ag; 4.5 m @ 29.2 g/t Au, 49 g/t Ag; 21.0 m @ 3.2 g/t Au, 21 g/t Ag; 4.5 m @ 9.5 g/t Au, 20 g/t Ag; 25 m @ 3.1 g/t Au, 7 g/t Ag; 26 m @ 3.0 g/t Au, 9 g/t Ag; 13.5 m @ 17.2 g/t Au, 33 g/t Ag; 61.6 m @ 3.7 g/t Au, 11 g/t Ag. “Mineralization at Diluvio is distinct from other Mercedes deposits in that it consists of two or more gently-dipping “Manto” type ore bodies that could be amenable to bulk underground mining or higher grade narrow vein mining.” At Rey de Oro target (open pit and underground target) intercepts include 13.7 m @ 3.7 g/t Au, 21 g/t Ag; 10 m @ 1.9 g/t Au, 36 g/t Ag; 17.6 m @ 1.4 g/t Au, 49 g/t Ag; 21.7 m @ 3.7 g/t Au, 23 g/t Ag; 13.9 m @ 9.9 g/t Au, 122 g/t Ag; 4.6 m @ 68.4 g/t Au, 72 g/t Ag.
  • Kootenay Silver Inc. released results from underground adit channel sampling at its La Cigarra property in Chihuahua. 17.5 m @ 130 g/t Ag, 0.13 g/t Au (includes 2.0 m @ 536 g/t Ag, 1.0 m @ 569 g/t Ag); 5.5 m @ 173 g/t Ag, 0.15 g/t Au; 12.0 m @ 49 g/t Ag, 0.11 g/t Au; 6.0 m @ 28 g/t Ag, 0.18 g/t Au. These results will aid in the definition of new targets on the deposit.
  • Gold Resource Corp. announced a significant expansion of its Switchback vein system, with a greater than 200 m step-out drill interception at the Aguila’s project Arista mine. At least 6 vein were cut, with intercepts like: 4.05 m @ 1.25 g/t Au, 117 g/t Ag, 1.0% Cu, 2.1% Pb; 12.9% Zn; 1.10 m @ 2.36 g/t Au, 566 g/t Ag, 0.55% Cu, 0.7% Pb, 1.2% Zn; 3.28 m @ 0.87 g/t Au, 257 g/t Ag, 0.18% Cu, 0.3% Pb, 0.5% Zn. The discovery outcrop of the Switchback system is evident in a ridge approximately 300 m further on strike to the NW from this intercept.
  • Millrock Resources Inc. presented 2016 results and plans for 2017. During 2016 signed an option agreement with Centerra Gold Inc. on Los Chinos and Los Cuarenta projects in Sonora, drilling at Los Chinos and completing surface exploration at Los Cuarenta. For 2017 Millrock and Centerra signed a 250 K alliance agreement for exploration in Sonora; drilling of the Los Cuarenta project is planned for the spring.

ON MINING

  • Torex Gold Resources Inc. poured 279,937 Oz Au during its first year of operations at its El Limon-Guajes mine in Guerrero. The company plans to sell 350 – 380 K Oz Au during 2017, at cash cost $525 – $575 and AISC $775 – $825 per Au Oz sold. The exploration budget for 2017 is $10 M.
  • US Antimony Corp. has started mining in its Mexican antimony and gold and silver properties, aiming to produce 50 K Lb Sb during January. During 2016 the company produced 277.8 K Lb of direct shipping ore @ 35.9% Sb at its Wadley mine in San Luis Potosi; at Soyatal, Queretaro, 155.3 K Lb of mill concentrate @ 24.6% Sb were produced, whereas at Los Juarez in Queretaro, the company is awaiting the permit on the cyanide leach plant. The flotation mill is to start the process of a 19 K ton stockpile of Los Juarez ore to test recovery rates.
  • Endeavour Silver Corp. reported 2016 production of 5.4 M Oz Ag and 57,375 Oz Au, or 9.7 M Oz Ag/Eq. At Guanaceví in Durango, 367.4 K tonnes were processed (1,007 tonnes per day) at a grade of 232 g/t Ag, 0.51 g/t Au (recoveries of 86.3% Ag, 88.4% Au) to produce 2.36 M Oz Ag and 5,328 Oz Au. At Bolañitos in Jalisco 507.7 K tonnes were processed (1,391 tonnes per day) at a grade of 81 g/t Ag, 2.31 g/t Au (recoveries of 79.6% Ag, 81.5% Au) to produce 1 M Oz Ag and 30,720 Oz Au. At El Cubo 583.8 K tonnes were treated (1,599 tonnes per day) at a grade of 123 g/t Ag, 1.41 g/t Au (recoveries of 87.4% Ag, 80.6% Au) to produce 2 M Oz Ag, 21,327 Oz Au. Over 16.km of mine development were carried out on the three mining units, and more than 34,000 trees were planted, receiving the annual “Socially Responsible Company Award” on the three units.
  • HECLA Mining Co. produced 17.2 M Oz Ag (48% increase) and 233,929 Oz Au (24% increase) during 2016 in its operations in several countries. At San Sebastian in Durango, 4.3 M Oz Ag and 34,042 Oz Au were produced.
  • Great Panther Silver Ltd. produced 2 M Oz Ag and 22,238 Oz Au during 2016. At the Guanajuato Mine Complex 320.9 K tonnes were milled @ 163 g/t Ag, 2.43 g/t Au (recoveries of 87.9% Ag, 86.4% Au) to produce 1.47 M Oz Ag and 21,626 Oz Au. At the Topia mine in Durango 55.8 K tonnes were milled @ 354 g/t Ag, 0.56 g/t Au (recoveries of 90.4% Ag, 60.6% Au) to produce 574 K Oz Ag, 612 Oz Au, 1,034 tonnes Pb and 1,496 tonnes Zn.
  • Fortuna Silver Mines Inc. reported 2016 production, which includes numbers from its San Jose mine in Oaxaca, where 905.4 K tonnes were milled (2,596 tonnes per day) at a grade of 228 g/t Ag, 1.72 g/t Au (recoveries of 92.3% Ag, 92.1% Au) to produce 6.1 M Oz Ag and 46,018 Oz Au. That production was reached at AISC $8.4 per silver ounce. Major capital investments for 2017 include $6.5 M for mine development, $2.2 M for equipment and infrastructure, $6.5 M tailings on a filtration plant expansion and $7 M for brownfield exploration (31,00 m of drilling, 600 m of underground development for drilling).
  • Capstone Mining Corp. announced production results for 2016, which include figures on its Cozamin mine in Zacatecas, where 1 M tonnes of ore were milled (2,736 tonnes per day) at a grade of 1.51% Cu, 0.66% Zn, 0.07% Pb, 43 g/t Ag (recoveries of 94.8% Cu, 63% Zn, 18.7% Pb, 72.4% Ag) to produce 53,744 tonnes of copper concentrate (26.6% Cu, 566 g/t Ag), 8,866 tonnes of zinc concentrate (47.3% Zn) and 222 tonnes of Pb concentrate (58.4% Pb, 3,155 g/t Ag). During the period 13,956 tonnes of payable copper were shipped.
  • Timmins Gold Corp. reported production results for 2016. At San Francisco, in Sonora, during the period 7.65 M tonnes of ore grading 0.58 g/t Au were processed, 3.96 M tonnes of low grade ore @ 0.24 g/t Au were stockpiled and 14.9 tonnes of waste moved (2.00 strip ratio) to accomplish the production of 100,322 Oz Au and 56,325 Oz Ag. Ore was processed at an average daily rate of 20,909 tonnes per day. Guidance for 2017 is between 70 K and 75 K Oz Au at cash costs of US$900 to US$950 per gold ounce. Mining operations at San Francisco are expected to continue to 2023 producing 450 K to 500 K Oz Au. At Ana Paula, in Guerrero, the feasibility study test work is advancing, with the 20,000 m drilling nearing completion. The feasibility study should be complete by mid-2017, and construction permits received before the end of the year.
  • Premier Gold Mines Ltd. produced 22,760 Oz Au in 2016 on its Mercedes mine in Sonora. Forecast for 2017 is the production of 85 K – 90 K Oz Au, at cash cost $680 – $710 per Au Oz and AISC $810 – $840 per Au Oz. Mercedes exploration budget for 2017 is $4.7 M, including some 20,000 m of drilling; The planned expansion and mine development is budgeted at $7.9 M.
  • Pan American Silver Corp. reported its operational results for 2016. The company produced 5.8 M Oz Ag, 2,930 Oz Au at La Colorada, Zacatecas, at cash cost $6.15; at Dolores, Chihuahua, produced 3.84 M Oz Ag, 102,760 Oz Au, at cash cost -$1.08 and 1.86 M Oz Ag, 8,380 Oz Au at Alamo Dorado, Sonora, at cash cost $16.02. The La Colorada mine is expected to mine 1,500 tonnes per day in 2017, to produce 6.4 to 6.9 M Oz Ag; the new underground mine at Dolores is to extract 1,500 tonnes per day by the end of 2017, with total production of 4.0 to 4.5 M Oz Ag and 109,100 to 115,000 Oz Au, whereas the Alamo Dorado mine in Sonora will cease processing stockpiled inventory during the first quarter 2017, and enter the reclamation phase. The company is to spend $21 M on near-site and regional exploration in the countries it operates, with a 110,000 meters drill program. The company plans regional exploration in Mexico and Peru.
  • Gold Resource Corp. announced preliminary 2016 production. The company produced at its El Aguila mine in Oaxaca 27,629 Oz Au, 1.86 M Oz Ag, 1,035 tonnes of copper, 4,049 tonnes of lead and 14,302 tonnes of zinc during the period.
  • Camrova Resources Inc. informed that the Boleo mine in Baja California Sur produced 14,284 tonnes of copper cathode, double from 2015, but short of the targeted 22,574 tonnes for 2016, due to a variety of factors (union action, a hurricane, lower grade feed etc.). Production for 2017 is aimed to double that of 2016. The mine plans to produce 2.0 M tonnes of ore from surface and 0.7 M tonnes from underground operations, to average 1.24% Cu, with recoveries of 84% Cu. Surface operations strip ratio is expected to exceed 8:1, to mine 1.16% Cu open pit ore. The 2017 budget is still 130 M short of funding. The life of mine plan extends to 2031, with average mine production of 3.2 M tonnes of ore (1.9 M tonnes surface, 1.2 M tonnes underground), for a total of 45.9 M tonnes @ 1.3% Cu, 0.07% Co, 0.5% Zn.

ON FINANCING

  • Mx Gold Corp. announced its intention to undertake a private placement to raise up to $2.6 M gross proceeds (Magistral del Oro, Chihuahua).
  • Timmmins Gold Corp. issued 36,400,000 units additionally and pursuant to the company’s short form prospectus dated November 28, 2016, for total net proceeds amounting $13.8 M (San Francisco mine in Sonora, Ana Paula project in Guerrero).

ON RESOURCES

  • Silver One Resources Inc. filed two NI-43-101 technical reports on the La Frazada and Peñasco Quemado silver properties in Nayarit and Sonora respectively. Both properties had resource estimates by the previous owner, Silvermex Resources Ltd. At La Frazada there is a Measured and Indicated resource of 4.7 M Oz Ag, 42.4 M Lb Pb+Zn and an Inferred resource of 3.8 M Oz Ag, 41 M Lb Pb+Zn. At Peñasco Quemado there is a Measured and Indicated resource of 9.6 M Oz Ag.

ON DEALS AND CORPORATE ISSUES

  • VanGold Resources Ltd. entered into an agreement with Exploraciones Mineras del Bajio, SA de CV to acquire a 100% interest on El Pingüico property in Guanajuato. Vangold will pay US$20 K on execution, US$30 K on receipt of TSX approval, issue 5 M common shares and make a final payment of US$50 K six months from TSX approval. A 4% NSR and 15% NPI is to be paid on stockpile minerals, and 3% NSR (1% can be purchased back for US$1 M) and 5% NPI on mined mineralization. The 71 has. Property includes the old Pinguico mine with a NON-43-101 compliant estimate of 320 K tonnes @ 1.16 g/t Au on an underground stockpile.
  • Goldcorp Inc. entered into a share purchase agreement with Leagold Mining Corp. to sell its Los Filos mine in Guerrero. Goldcorp will receive $438 M, consisting of $279 M in cash, $71 M in Leagold common shares and certain tax receivables of $88 M. At the close of the transaction Goldcorp will own 30% of Leagold shares.
  • Colibri Resource Corp. announced that its shares remain halted at the TSX, pending reception and review of documentation regarding the acquisition of Canadian Gold Resources.

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 below, makeshift tauna remains south of La Rumorosa, Baja California.

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