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The Mining and Exploration News in Mexico: Highlights on the Second Week of June 2024

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By Jorge Cirett                                             

During the 24th week of the year (June10th to June 16th, 2024), companies working in Mexico posted at least 19 press releases. One company is mobilizing its drilling crew on its property and one other elaborated on its 2024 production guidance for two mines. Four companies announced the opening/closing of financing rounds for C$20.8 M. One company released a PEA on its advanced property, another a multi-year exploration strategy, another one released drilling results from its advanced property and one more released drilling results from its mining areas. Two companies dropped their legal challenges with the Mexican authorities to submit their claims to international arbitration. A company reminded its shareholders to pay attention to the spin out of the royalty company. A company informed on the agreement amendment to repurchase a royalty and the modification of a payment clause on an option purchase agreement. ON MEXICO ISSUES the local stock exchange and the Mx Peso-US Dollar exchange rate took a moderate dip during the week as the current president and incumbent party members commented on the likelihood to pass constitutional reforms aimed to centralize power after the landslide victory obtained in the general elections on June 2, 2024.  The main driver of the run is the intention to reform the Supreme Court with the election of ministers by a popular poll (similar to the current system in Bolivia), which is likely to be capitalized by the majority incumbent party Morena. Mining and exploration companies now have to raise to the reality that they better be well prepared for six more years of a government that does not like businesses in general and mining in particular. ON EXPLORATION, In Sinaloa, Prismo Metals is to mobilize its drilling crew to Palos Verdes. ON MINING, Luca Mining announced its 2024 production guidance for Campo Morado in Guerrero and Tahuehueto in Durango. ON FINANCING, Fortuna Silver closed the convertible senior notes previously announced for US$175 M (really, really unlikely to be invested in Mexico). Barksdale Resources, Prismo Metals, Impact Silver and Heliostar Metals raised a combined C$20.8 M. Quetzal Copper received a cease trade order in BC. ON RESOURCES AND DEVELOPMENT, Southern Silver Exploration released results from a PEA on Cerro Las Minitas, in Durango. Torex Gold presented its multi-year exploration strategy for the Morelos property in Guerrero. Vizsla Silver reported infill drilling results from Panuco, in Sinaloa. First Majestic Silver announced drilling results from San Dimas, in Sinaloa. ON DEALS AND CORPORATE ISSUES, Almadex Minerals and Almaden Minerals withdrew their legal challenges with the Mexican authorities as they took the decision to submit their claims to international arbitration. Vizsla Silver reminded its shareholders on the spinout of Vizsla Royalties. Capitan Silver amended the agreement to repurchase a royalty and also the option agreement on a mining concession at its Cruz de Plata project in Durango. SilverCrest Metals presented results from its AGM. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • The local stock exchange and the Mx Peso-US Dollar exchange rate took a moderate dip during the week as the current president and incumbent party members commented on the likelihood to pass constitutional reforms aimed to centralize power after the landslide victory obtained in the general elections on June 2, 2024.  The main driver of the run is the intention to reform the Supreme Court with the election of ministers by a popular poll (similar to the current system in Bolivia), which is likely to be capitalized by the majority incumbent party Morena. Mining and exploration companies now have to raise to the reality that they better be well prepared for six more years of a government that does not like businesses in general and mining in particular

ON EXPLORATION

  • Prismo Metals Inc. intends to mobilize its drilling crew to the Palos Verdes project in Sinaloa. Approximately 3,600 m in ten holes are to be completed in two phases after the closing of the ongoing financing. “These holes will be drilled from Vizsla Silver Corp. (TSXV: VZLA) concessions adjacent to the Palos Verdes concession and will target the Palos Verdes vein at depth.”

ON MINING

  • Luca Mining Corp. announced its 2024 guidance and outlook for the Campo Morado and Tahuehueto mines. At Campo Morado in Guerrero, the company aims to produce 43 K to 50 K Oz AuEq at cash cost $1,175 to $1,294 per Oz AuEq and an AISC of $1,235 to $1,420 per Oz AuEq to obtain $55 M to $65 M in revenue. At Tahuehueto, in Durango, Luca Mining expects to produce 17 K to 20 K Oz AuEq at cash cost $1,295 to $1,420 per Oz AuEq and an AISC of $1,510 to $1,700 per Oz AuEq, to obtain $35 M to $40 M in revenue. At Tahuehueto the company is installing a third filter press that will allow to increase production from 450 tpd to 800 tpd in a short timeframe. At Campo Morado production is ramping back up to 2,000 tpd (from 1,390 tpd in Q1 2024), coupled with the production of three concentrates of copper, zinc and lead, instead of the two currently being produced.

ON FINANCING

  • Fortuna Silver Mines Inc. closed the previously announced offering of 3.75% convertible senior notes due 2029 in an aggregate principal of US$175.5 M, which includes exercise of the full amount of the option to purchase an additional US$22.5 M aggregate principal amount of notes “The initial conversion rate for the Notes is 151.7220 common shares of Fortuna (“Shares”) per US$1,000 principal amount of Notes, equivalent to an initial conversion price of approximately US$6.59 per Share” (San José, Oaxaca).
  • Barksdale Resources Corp. increased the previously announced non-brokered private placement financing for gross proceeds of C$5.62 M. The proceeds are to be used in the exploration activities of Barksdale’s Arizona properties (San Javier, Sonora).
  • Quetzal Copper Corp. has been issued a cease trade order from the British Columbia Securities Commission on June 4, 2024 for failure to file interim financial reports, interim management´s discussion and analysis and certification of interim filings for Q1 2024 (Cristinas, 2024).
  • Prismo Metals Inc. announced that it has received commitments for gross proceeds of C$1.1 M (Palos Verdes, Sinaloa).
  • Capitan Silver Corp. granted 3.94 M options to officers, directors and consultants (Cruz de Plata, Durango).
  • IMPACT Silver Corp. closed the second tranche of the non-brokered private placement financing previously announced for combined gross proceeds of C$9.09 M (Plomosas, Chihuahua).
  • Heliostar Metals Ltd. announced a non-brokered private placement for gross proceeds of up to C$5 M (Ana Paula, Guerrero).

ON RESOURCES AND DEVELOPMENT

  • Southern Silver Exploration Corp. released results from its preliminary economic assessment (PEA) on its Cerro Las Minitas project in Durango. Key features include an after-tax NPV5% of US$501 M and IRR of 21.2% with a 48-month payback, Initial CapEx of $388 M, a large-scale underground operation with a 17-year mine life with LOM feed totalling 243 M Oz AgEq to produce 194 M Oz Ag at an AISC of $13.23 per Oz AgEq. Gross revenues totalling US$4.47 B with Ag and Au representing 45% of revenue and zinc 35%. The project has 13.3 M tonnes @ 102 gpt Ag, 0.07 gpt Au, 0.17% Cu, 1.3% Pb, 3.1% Zn containing 43.2 M Oz Ag, 32 K Oz Au, 49 M Lb Cu, 374 M Lb Pb, 921 M Lb Zn as indicated resources and 23.4 M tonnes @ 111 gpt Ag, 0.14 gpt Au, 0.21% Cu, 1.1% Pb, 2.1% Zn, containing 83.4 M Oz Ag, 104 K Oz Au, 111 M Lb Cu, 582 M Lb Pb, 1,106 M Lb Zn.
  • Torex Gold Resources Inc. presented the multi-year exploration strategy for its Morelos property in Guerrero. The exploration and drilling strategy has the objective to maintain more than 450 K Oz Au annual production and is to focus in three areas: 1) Extending the mine life of ELG Underground and Media Luna 2) Expanding resources within the Media Luna Cluster 3) Advancing targets through the growth pipeline. The $31 M exploration budget for 2024 includes $3 M for regional exploration, including the El Naranjo and Atzcala targets, and plans to explore north of the Balsas River.
  • Vizsla Silver Corp. released results from 12 diamond drill holes targeting the Copala structure at its Panuco project in Sinaloa. Some of the true width intercepts of the infill program comprise 5.00 m @ 22.95 gpt Au, 1,378 gpt Ag (including 2.75 m @ 39.10 gpt Au, 2,225 gpt Ag); 13.00 m @ 8.19 gpt Au, 1,017 gpt Ag (including 1.40 m @ 35.11 gpt Au, 4,124 gpt Ag); 6.00 m @ 10.31 gpt Au, 1,882 gpt Ag; 8.70 m @ 5.18 gpt Au, 1,096 gpt Ag; 12.30 m @ 1.57 gpt Au, 150 gpt Ag. “Resource drilling at Copala has now traced mineralization along ~1,770 metres of strike length and ~400 metres down dip.”
  • First Majestic Silver Corp. announced drilling results from its 2024 exploration program at San Dimas, in Durango. The drill program focus was to test new Au-Ag targets, add mineral resources and convert mineral resources to mineral reserves. Highlighted true length results comprise 2.15 m @ 20.41 gpt Au, 1,702 gpt Ag; 6.08 m @ 1.99 gpt Au, 440 gpt Ag; 6.72 m @ 7.36 gpt Au, 1,129 gpt Ag; 1.28 m @ 11.53 gpt Au, 1,158 gpt Ag; 7.88 m @ 10.87 gpt Au, 1,034 gpt Ag; 1.01 m @ 12.34 gpt Au, 196 gpt Ag; 1.76 m @ 39.28 gpt Au, 1,905 gpt Ag; 2.18 m @ 4.86 gpt Au, 511 gpt Ag; 1.34 m @ 9.44 gpt Au, 1,069 gpt Ag; 0.94 m @ 13.24 gpt Au, 1,501 gpt Ag; 2.05 m @ 3.42 gpt Au, 361 gpt Ag.

ON DEALS AND CORPORATE ISSUES

  • Almadex Minerals Ltd. has taken the decision to submit its claims to arbitration against Mexico under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, after a consultation meeting with Mexican officials on May 30, 2024 did not result in an amicable resolution of the dispute with Mexico. Almadex is pursuing this arbitration together with Almaden Minerals Ltd., and based on a preliminary estimate will be seeking damages of no less than US$200 million. Almadex would be entitled to damages relating to its 2.0% NSR royalty on the Ixtaca project in Puebla.
  • Almaden Minerals Ltd. has taken the decision to submit its claims to arbitration against Mexico under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, after a consultation meeting with Mexican officials on May 30, 2024 did not result in an amicable resolution of the dispute with Mexico. Almaden has withdrawn its legal challenge in the Mexican Federal Administrative Court and other legal proceedings in respect of the company’s mining concessions, as required for submitting a claim under the CPTPP. The ruling on the arbitration under the CPTPP will be adjudicated pursuant to the arbitration rules of the International Centre for Settlement of Investment Disputes (ICSID). Almaden is pursuing this arbitration together with Almadex Minerals Ltd., and based on a preliminary estimate will be seeking damages of no less than US$200 million, in the aggregate (Ixtaca, Puebla).
  • Vizsla Silver Corp. reminds its shareholders that if the spinout of Vizsla Royalties Corp. is approved at the special meeting being held on June 17, 2024, the company will seek a final order from the Supreme Court of British Columbia to approve the arrangement and closing will occur on or about June 24, 2024. “The owners of common shares of Vizsla Silver … are entitled to receive one-third of a common share of Vizsla Royalties Corp. …. and one-third of a common share purchase warrant of Vizsla Royalties Corp.” for each Vizsla Silver Share held on the record date (Panuco, Sinaloa).
  • Capitan Silver Corp. amended its agreement to repurchase a royalty on its Cruz de Plata project in Durango. The net smelter royalty (NSR) entitled Exploraciones del Altiplano an NSR of up to 2%. “The amendments have restructured the final payments to Altiplano which totaled USD $1.0 million into three smaller payments over the course of a year. Upon signing of the amendment a cash payment of USD $87,500 was made, with remaining payments to consist of 50% cash and 50% shares as follows: USD $200,000 in October 2024 and USD $300,000 in April 2025.” Amended was also the option agreement to purchase the “El Casco U” property from Fresnillo plc, modifying the November 2023 US$150 K payment to a US$156.3 K payment on May 2024, which has since been paid.
  • SilverCrest Metals Inc. announced results from its annual general meeting (AGM) held on June 12, 2024. Eight directors were re-elected by a handsome majority on the meeting where “A total of 88,115,662 votes were represented at the AGM amounting to 59.84% of the issued common shares…”  

ON SOCIAL RESPONSIBILITY

  • No Relevant News.

On the image below: Saw scratched molybdenite speck image on a 40 X hand lens from a project in the Sonoran Desert. Picture by Jorge Cirett

The Mining and Exploration News in Mexico: Highlights on the Second Week of March 2024

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By Jorge Cirett                                             

During the 11th week of the year (March 11th to March 17th, 2024), companies working in Mexico posted at least 26 press releases. Three companies reported on exploration at its properties while three more released results for the last quarter/full-year. Four companies announced financing rounds for a total of C$7.8 M, one is delisting from one Stock Exchange and listing in another one, another is extending its warrants expiry date and one more is granting stock options. One company informed on work at its advanced property. One company obtained a hard-sought community authorization for exploration activities, while one other is stopping activities in Mexico. A company announced an appointment to the board and one more the optioning of a property. One company is to process third-party material at its mill, one is cancelling an option and its related financing round and one more is updating on its legal action against the Mexican government. ON MEXICO ISSUES, a couple of judicial resolutions set the application of the new mining law on hold. The anti-mining stance by the federal government is bearing fruit, pushing mining investment out of the country. ON EXPLORATION, in Sonora, Colibri Resource updated on work at its EP project. In Chihuahua, Kootenay Silver is to drill at Columba. In Durango, Silver Dollar is re-evaluating the Nora project. ON FINANCING, three companies informed on the opening or closing of financing rounds: Regency Silver (C$250 K), Reyna Silver (C$3.2 M), Defiance Silver (C$2.6 M) Guanajuato Silver granted options to directors, management and consultants. Pantera Silver is to extend the expiry date of warrants. Almaden Minerals is to change its listing stock exchange. ON RESOURCES AND DEVELOPMENT, Atacama Copper started drilling at Cristina, in Chihuahua, focusing on high-grade resources. ON DEALS AND CORPORATE ISSUES, USAntimony is closing operations in Mexico. Vortex Metal obtained community exploration approbation. Sonoro Gold announced an appointment to the board. Riverside Resources and Fortuna Silver signed an option agreement on the Cecilia project, in Sonora.  CMC Metals dropped the option on the Gavilanes project and the concurrent financing round on lack of exploration permit. Guanajuato Silver Company signed a new third-party processing agreement. Almaden Minerals and Almadex Minerals updated on its request for consultation under the CPTPP.  ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • According to the newspaper La Jornada a judge upheld a partial suspension on the reforms to the mining law, specifically on the article that disposes all mining concession applications not yet titled. First Majestic Silver promoted the appeal on grounds of unconstitutionality.
  • The Poder Judicial Federal suspended multiple parts of the reform to the Mining Law of last May 2023, as these are likely unconstitutional. By Mid-April the Supreme Court has to discuss if the reforms are invalidated because of violations to the legislative process, although the project on the Mining Law still has to be included on the minute. Some points addressed in the reform include the reduction from 50 to 30 years of duration of the concession, auctioning of mining concessions, community consultation and retribution and water use limitations among others.
  • The Mexican government mining policies are bearing fruit. The Mining Law changes of last year (likely to be soon rejected by the Supreme Court), the reluctance by the environmental agency (SEMARNAT) to reauthorize mining permits, the lack of permits for open pit mining, the unwillingness to end illegal blockades and the general anti-mining stance of the current federal government are working as expected, deterring mining investment and pushing the more disadvantaged players, junior foreign companies, out of the country. Just this week USAntimony is closing operations in Mexico, CMC Metals is bailing out of a deal to option a property because of SEMARNAT’s failure to extend an exploration permit and Almaden Minerals informed on the international proceedings regarding its Ixtaca project in Puebla. Those companies are adding to the likes of Fortune Silver, Argonaut Gold, Riverside Resources and Golden Minerals, among others, that have made public during this quarter their reassessment of continuing operations in Mexico or have current arbitration cases, like Silver Bull Resources on its Sierra Mojada project in Coahuila. How much this scenery is to change depends on when/if the Mining Law changes are repealed and the open pit mining ban scraped.

ON EXPLORATION

  • Silver Dollar Resources Inc. commenced its re-evaluation of the Nora property in Durango during last February, with the collection of 72 surface samples on the East, West and South anomalies, as well as from the main Candy structure. Rock samples on the Candy structure attempt to replicate the results from the previous operator, and will be reported when received.
  • Colibri Resource Corp. updated on exploration activities at its EP Gold project in Sonora. Work includes an airborne magnetic survey covering 1,385 ha at a height of 35 m and a 50 m spacing between flight lines. Similar equipment and survey parameters with previous surveys allowed for the combination of the datasets. Geological mapping completed on selected areas with 64 rock samples collected as well as 23 rocks for thin section petrography. Interpretation of geological, geochemical and geophysical surveys highlighted the importance of north-northeast trending structures, and the recognition of easterly trending ones. Colibri has identified 14 target areas, prioritizing four of these for drilling.
  • Kootenay Silver Inc. announced the initiation of the Q1 diamond drill program at Columba, in Chihuahua. The program envisages 15 to 17 holes for 5,000 m designed to expand upon previous intercepts along the D-Vein target. “The current drilling program is designed to extend the D-Vein in preparation of a follow up program of likely 15,000 meters, aimed to delineate a maiden resource expected in late 2024 which is dependent on additional drilling beyond the 5000 meter program and the financing it requires.”

ON MINING

  • Endeavour Silver Corp. announced financial and operating results for Q4 and full-year 2023. During the year the company produced 5.7 M Oz Ag, 37,858 Oz Au, or 8.7 M Oz AgEq, for a total revenue of $205 M, $37 M in operating cash flow before working capital changes and net income of $6.1 M. Consolidated cash cost net of by-product credits was $13.49 per Oz Ag, and an AISC of $22.93 per Oz Ag, impacted by higher costs. During the year Bolañitos in Guanajuato processed 441 K tonnes to produce 537.5 K Oz Ag, while Guanaceví in Durango processed 433.4 K tonnes to produce 5.09 M Oz Ag. Construction of the Terronera mine in Jalisco continues on schedule. Cash position of $35.3 M and $42.5 M in working capital.
  • SilverCrest Metals Inc. released financial results for Q4 and year 2023. During the year Las Chispas mine in Sonora mined 300.9 K tonnes, processed 431.4 K tonnes at a rate of 877 tpd, with ore averaging 4.39 gpt Au, 423 gpt Ag (or 771 gpt AgEq), recovering 98.1% Au, 96.5% Ag, to produce 59,700 Oz Au, 5.65 M Oz Ag (or 10.4 M Oz AgEq) at cash cost $7.73 per Oz AgEq. In 2023 the company completed 13.2 km of horizontal and vertical underground development. During the year SilverCrest generated $116.7 M in net earnings and free cash flow was $121.1 M, holding cash and cash equivalents of $86 M by the end of the year.
  • Gold Resource Corp. announced full-year operational results from its Don David Gold Mine in Oaxaca. During Q4 2023 the mine milled 111.2 K tonnes @ 1.44 gpt Au, 85 gpt Ag, 0.39% Cu, 1.39% Pb, 2.95% Zn to produce 4,077 Oz Au, 282.5 K Oz Ag, 341 Cu tonnes, 1,072 Pb tonnes, 2,884 Zn tonnes in the quarter, adding up to 18,534 Oz Au, 1.04 M Oz Ag (31,085 Oz AuEq). For 2024 the guidance is to produce 13,000 to 15,000 Oz Au, 1.25 to 1.4 M Oz Ag, (29,500 to 31,500 Oz AuEq) at cash cost $1,450 to $1,650 per Oz AuEq. Negotiations during Q4 2023 reduced royalties from 5% to 3% on the La Tehuana, El Aguila, and Mina El Aire mining concessions.

ON FINANCING

  • Regency Silver Corp. closed further $253 K of a previously announced non-brokered placement of $800 K. The company also granted stock options to acquire 1.7 M of common shares to directors, officers, employees and consultants (Dios Padre, Sonora).
  • Pantera Silvera Corp. applied to extend the expiry date of 11.8 M share purchase warrants to March 11, 2025 (Nuevo Taxco, Guerrero).
  • Reyna Silver Corp. increased the size of its non-brokered listed issuer financing exemption (“LIFE”) announced on Feb 14, 2024, and its previously announced concurrent non-brokered private placement. The amended LIFE offering is to raise up to $3.2 M (Guigui, Chihuahua).
  • Almaden Minerals Ltd. informed that because of the low price of its share (due to the dispute with the Mexican government. – See below) the company will voluntarily delist from the NYSE and parallelly seek a listing on the OTCQB Marketplace (Ixtaca, Puebla).
  • Defiance Silver Corp. closed the final tranche of its previously announced non-brokered private placement for aggregate gross proceeds of C$2.6 M. Windermere Capital Fund SPC – Breakaway Strategic Resource SP, an insider of the company purchased C$1.2 M in shares, taking its ownership to a total of 41.5 M common shares and 3.05 M warrants. (Zacatecas, Zacatecas).
  • Guanajuato Silver Company Ltd. granted stock options and restricted share units to select officers, directors, employees and consultants (El Cubo, Guanajuato).
  • Sierra Madre Gold and Silver Ltd. upsized and closed its previously announced non-brokered private placement financing raising total gross proceeds of $1 M (La Guitarra, Estado de Mexico).

ON RESOURCES AND DEVELOPMENT

  • Atacama Copper Corp. started a 10,000 m diamond drilling campaign at its Cristina project in Chihuahua. “The Cristina project consists of multiple outcropping quartz veins that are frequently greater than 10 metre in width and extend for a currently known strike length of up to five kilometres. At least four parallel mineralized vein zones have been mapped and sampled to date”. Epithermal to mesothermal mineralization is known to occur over 1,100 m of vertical range, hosted by andesitic volcanic rocks of the Lower Volcanic Group and locally covered by Upper Volcanic Group rhyolitic rocks. Current open pit constrained resources are centered on the Guadalupe vein, comprising 752 K Oz AuEq in indicated resources and 777 K Oz AuEq in inferred resources. Atacama is trying to define an underground higher-grade resource.

ON DEALS AND CORPORATE ISSUES

  • United States Antimony Corp. announced plans to discontinue all Latin America operational activities and close its US Antimony Mexico, S.A. de C.V. (USAMSA) subsidiary, terminating the majority of its employees on March 11, 2024, immediately. “The Company intends to possibly sell or lease its USAMSA entity, operations, or assets over the next year and has initiated an active search for buyers or leasing opportunities of its operations and/or existing assets.” United States Antimony will continue to hold its existing Los Juarez mining claims in Queretaro. The reasons stated to close include high operating costs, new stringent Mexican mining laws, safety concerns, and the inability to collect back taxes from the Mexican government.
  • Vortex Metals Inc. announced the authorization by the Santiago Astata Agrarian Community to Vortex to carry on mineral exploration activities, including drilling, at its Zaachila project in Oaxaca. “Furthermore, the company has committed to forming an environmental monitoring committee with active community participation to oversee the activities and ensure environmental protection throughout the exploration program”.
  • Sonoro Gold Corp. appointed Katherine Reagan to the board of directors, in addition to her position of vice president of corporate development and corporate secretary (Cerro Caliche, Sonora).
  • Riverside Resources Inc. signed an option agreement with Fortuna Silver on Riverside’s Cecilia project in Sonora. The option term agreement envisages 5 years to earn 51% by spending US3.75 M, delivery of $150 K in cash payments and at least $500 K spent on work in the first year. Fortuna paid Riverside the initial $25 K on signing, and is to pay $25 K on filing of the agreement in Mexico, and further $25 K per year, with Riverside acting as operator charging a 10% management fee on top of work spending. Upon earning 51%, Fortuna may earn 80% by spending an additional $2.25 M in work over 3 years. After earning 80%, Fortuna might elect within 120 days to pay Riverside $5 M cash and grant Riverside a 2% NSR where 1% NSR may be purchased for $3 M, with Fortuna earning 100% in the project. The low sulfidation Au-Ag epithermal mineralization is associated to at least two nested dome complexes in sedimentary rocks.
  • CMC Metals Ltd. announced the cancellation of the $1.2 M private placement previously announced due to the failure, of the property owner of the Ag-Au Gavilanes project in Durango, to achieve an extension of the exploration permit with SEMARNAT (Mexico’s environmental Agency). “CMC has subsequently served notice of its intent to terminate the agreement with Sailfish Royalty Corp. to acquire the Gavilanes project but remains interested in securing exclusivity rights until October 2024.” The company intends to focus on its flagship Silverknife property in British Columbia.
  • Guanajuato Silver Company Ltd. announced the signing of a new third-party processing agreement with REM Marfil S.A. de C.V., a local Guanajuato based company. Under the agreement mineralized material from the past producing La Providencia mine is to be processed at the El Cubo and Cata processing facilities in Guanajuato. “The Agreement covers the processing of an initial 80,000 dry metric tonnes of mineralized material with a minimum head grade of 0.43 grams per tonne gold and 192 grams per tonne silver.”
  • Almaden Minerals Ltd. and Almadex Minerals Ltd. updated on its Request for Consultation delivered to the Mexican government in December 2023 according to the Comprehensive and Progressive Agreement of for Trans-Pacific Partnership (CPTPP). The Mexican government acknowledged receipt but never proposed dates for a consultation meeting. On March 14, 2024, Almaden delivered to Mexico written notice of its intention to submit a claim to arbitration under the CPTPP. “The damages relating to the Almaden and Almadex Claim will be for no less than US$200 million, in the aggregate. The Notice enables the Company to initiate arbitration should an amicable resolution of the dispute with the Mexican government not be reached.”

ON SOCIAL RESPONSIBILITY

  • No Relevant News.

On the image below: Specularite-quartz matrix breccia in a project in the Sonoran Desert. Picture by Jorge Cirett.

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

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Cu mineralization in a Carbonate Replacement Deposit

By Miguel A Heredia

During the 42nd week of the year (October 16th to October 22nd, 2023), at least 27 press releases were announced by companies working in Mexico, and 1 news published by the media, with eight communicating production results, five informing on exploration results, five reporting resources and developments of their properties, four disclosing deals and corporate issues, three commenting on Mexican issues, two announcing financing issues, and one discussing social issues. ON MEXICO ISSUES, Newmont announced end of strike at its Peñasquito Mine in Zacatecas. Almaden reported on two recent court decisions, both relating to the submission issued by Mexico´s Ministry of Economy to the second district court in Puebla (Ixtaca project, Puebla). Prismo, Endeavour, and Kootenay reported the best drilling intercepts in Mexico on the third week of October, 2023. ON EXPLORATION, In Sonora, Aztec Minerals selected drill contractor and mobilized exploration crews to conduct an upcoming RC drilling program at its Cervantes project, Prismo reported results of the first holes ever drilled at its Los Pavitos project, Tocvan released first pass reconnaissance results from its Pilar expansion area, and Colibri provided an update on its exploration activities at their Pilar, EP, and Diamante projects. In Chihuahua, Kootenay announced results from its ongoing drilling program at its Columba project. ON MINING, Orla reported Q3, 2023 production results from its Camino Rojo project in Zacatecas. Equinox announced that it will present its Q3, 2023 financial and operating results on October 31, 2023 (Los Filos Mine, Guerrero). GoGold reported Q3, 2023 production results from its Parral Tailings project in Chihuahua and provided an update on its Parral Zn circuit. Santacruz reported Q3, 2023 production results from its Zimapan Mine in Hidalgo. Avino reported Q3, 2023 production results from its Avino Mine in Durango. Sierra Metals reported Q3, 2023 production results from their Bolivar and Cusi Mines in Chihuahua. Bear Creek reported Q3, 2023 production results from its Mercedes Mine in Sonora. ON FINANCING Sierra Madre announced the amendment of all 5,123,092 subscription receipts, in order to extend the escrow release conditions and termination (as both terms are defined in the May 31 and Sep 14 News Releases) for an additional 30-day period (La Guitarra Mine Complex, Estado de Mexico State). Bear Creek announced the issuance of promissory note to Equinox (Mercedes Mine, Sonora).  ON RESOURCES AND DEVELOPMENT, Sonoro filed a NI 43-101 technical report for a Preliminary Economic Assessment (PEA) on its Cerro Caliche project in Sonora.  Gold Resource announced preliminary Q3, 2023 production results from its Don David Gold Mine in Oaxaca. Sierra Madre announced that it has engaged Stantec Consulting International LLC to examine tailings deposition options at its La Guitarra Mine Complex in Estado de Mexico State. Endeavour released positive drill results from its ongoing drilling program being conducted at El Curso and Porvenir Dos Areas at its Guanacevi project in Durango. Oroco filed a Preliminary Economic Assessment (PEA) and updated Mineral Resource Estimate (MRE) for the North and South Zones of its Santo Tomas project in Sinaloa. Gatos Silver announced filing of updated technical report on its Cerro Los Gatos Mine, Chihuahua.  ON DEALS AND CORPORATE ISSUES, Goldgroup exercised its option to purchase all of the issued and outstanding common shares of Minera Cerro Esperanza S.A de C.V., which owns the Company’s previously held Cerro Prieto mining concessions, in Sonora. Vortex announced the attendance at the 121 Mining Investment Conference in New York (Riqueza Marina project, Oaxaca). Tocvan completed a definitive agreement with a private owner to acquire 100% interest in 2,172.7 hectares adjacent to Pilar project in Sonora. Silver Viper amended the terms of its option to acquire 100% ownership of three mineral concessions totaling 2,102 hectares at the La Virginia project, Sonora.   ON SOCIAL RESPONSIBILITY, Minera Media Luna, a subsidiary of Torex Gold Resources Inc, renewed the agreement of the Avanzando Juntos scholarship program with 60 young people, 33 of whom are pursuing their high school studies and 27 plus a bachelor’s degree.

ON MEXICO ISSUE

  • Newmont Corporation announced end of strike at its Peñasquito Mine in Zacatecas, and now is focused on a safe return-to-work plan and a quick ramp up of operations while strengthening workforce relationships. On October 13, 2023, Newmont and the Union submitted the Agreement to the Mexican Labor Court, which gave its approval, thus ending the strike. “In 2022, Peñasquito contributed USD $1.9 B in economic value to Mexico, including USD $643M in employee wages and benefits, taxes, and royalty payments to federal, state, and local governments, and investments in community infrastructure and water projects. Minera Peñasquito is the second largest employer in Zacatecas, Mexico with a workforce of more than 5,000 individuals. The mine supports another 28,000 people and their families, in neighboring communities and across the country, who are part of the mine’s local and national supply chain”.
  • Almaden Minerals Ltd., reported on two recent court decisions, both relating to the submission issued by Mexico´s Ministry of Economy to the second district court in Puebla. “As reported on February 22, April 13, and September 14, 2023, Economia made the Submission to the District Court seeking to deny the two mineral title applications which were first made by Almaden in 2002 and 2008. The Submission claims that the applications contain technical faults, despite Economia’s previous statements to the contrary and its acceptance of the mineral title applications and grant of the mineral titles in 2003 and 2009. By alleging technical faults in the mineral title applications, Economia appears to be arbitrarily seeking to deny the grant of the mineral titles and avoid the indigenous consultation ordered by the February 2022 decision of Mexico’s Supreme Court (SCJN). Such consultation would be welcomed by both the Company and surrounding community members. The two court decisions reported today are summarized as follow: The Federal Appeals court (TCC) dismisses all of the appeals filed by the Parties, including those of the  Company and supporting community members, and rules the Submission is compliant with the 2022 decision of the SCJN, since the SCJN decision did not formally prevent Economia from reviewing the technical aspects of the mineral title applications; The TCC ruling also does not address the validity of the Submission and therefore safeguards the Company’s right to challenge the substance and legality of the Submission through the Mexican Federal Administrative Court (TFJA);  As follow-up to the press release of September 14, 2023, the TFJA has now granted a definitive injunction in relation to the Submission, which prevents Economia from releasing the mineral rights covered by Almaden’s mineral title applications to third parties while the trial continues, anticipated to last 18 months”. (Ixtaca project, Puebla).
  • Prismo Metals Inc., Endeavour Silver Corp., and Kootenay Silver Inc., reported the best drilling intercepts in Mexico on the third week of October, 2023. Details are shown in the table below:

ON EXPLORATION

  • Aztec Minerals Corp., selected drill contractor and mobilized exploration crews to conduct an upcoming RC drilling program at its Cervantes project. This RC drilling program is planned to be conducted at Q4, 2023 in two stages and is permitted for a total of 4,200m in 28 holes. Second stage will be designed subject to results of the initial stage RC drilling program.
  • Prismo Metals Inc., reported results of the first holes ever drilled at its Los Pavitos project. It reported that four of the first eight holes at Santa Cruz target encountered high grade gold mineralization. Drilling highlights include hole LP-SC-01 (true widths reported) with 2.34 g/t Au, 15 g/t Ag, 0.08% Cu, 0.2% Pb, and 0.7% Zn over 5.2m, including 7.04 g/t Au, 43 g/t Ag, 0.19% Cu, 0.6% Pb, and 2.3% Zn over 1.4m; hole LP-SC.02 with 0.27 g/t Au, 0.5 g/t Ag, 0.01% Cu, 0% Pb, and 0.01% Zn over 1.2m, plus 5.77 g/t Au, 29 g/t Ag, 0.15% Cu, 0.2% Pb, and 0.4% Zn over 6m, including 10.22 g/t Au, 47 g/t Ag, 0.17% Cu, 0.3% Pb, and 0.6% Zn over 3.3m; hole LP-SC-07 with 1.52 g/t Au, 19 g/t Ag, 0.11% Cu, 0.1% Pb, and 0.06% Zn over 8.3m, including 2.52 g/t Au, 29 g/t Ag, 0.15% Cu, 0.1% Pb, and 0.1% Zn over 4.8m; and hole LP-SC-08 with 3.78 g/t Au, 19 g/t Ag, 0.19% Cu, 0.1% Pb, and 0.2% Zn over 7m, including 5.33 g/t Au, 27 g/t Ag, 0.27% Cu, 0.1% Pb, and 0.3% Zn over 4.5m. Prismo has delineated with mapping and sampling in the last year other targets in the property such as Las Auras, Oromuri, and Española. The company has plans to drill-test these other targets as well as to continue exploring the property to develop additional new areas for drilling in several areas identified during reconnaissance work.
  • Tocvan Ventures Corp., released first pass reconnaissance results from its Pilar expansion area. Samples were collected 4.5km from the Pilar main Zone and returned high grade gold and silver values “associated with intense hydrothermal altered volcanic rocks on the newly acquired expansion area. Highlights include 5.60 g/t Au and 106 g/t Ag; 3.54 g/t Au and 645 g/t Ag; and 1.84 g/t Au and 177 g/t Ag. “The extent of the alteration in the area of the samples spans for over 3.3km of strike and over a 1.5km width as defined by satélite Aster data”.
  • Kootenay Silver Inc., announced results from its ongoing drilling program at its Columba project in Chihuahua.  The current program comprises a 12 to 15 hole campaign for a total of approximately 3,000m designed to extend known mineralization on the “D-Vein” target 0.06% Pb, and area at Columba. Drilling highlights include hole CDH-23-138 with 599 g/t Ag, 0.5% Pb, and 1.2% Zn over 13.56m, including 858 g/t Ag, 0.8% Pb, and 1.9% Zn over 8m, including 2,060 g/t Ag, 3.2% Pb, and 4.3% Zn over 1m; hole CDH-23-137 with 118 g/t Ag, 0.03% Pb, and 0.09% Zn over 29.20m, including 190 g/t Ag, 0.04% Pb, and 0.2% Zn over 11.20m, or 864 g/t Ag, 0.2% Pb, and 0.08% Zn over 1m, or 340 g/t Ag, 0.06% Pb, and 1.2% Zn over 4m; and hole CDH-23-136 with 203 g/t Ag, 0.03% Pb, and 0.09% Zn over 4.97m, including 335 g/t Ag, 0.03% Pb, and 0.08% Zn over 2.97m. “The first 12 holes of the current program are designed to extend the D-Vein in preparation of a follow up program aimed to result in a maiden resource in late 2024. In addition to the D Vein, the Company maintains a priority list of new vein targets and known vein extensions all warranting drill testing”.
  • Colibri Resource Corporation provided an update on its exploration activities at their Pilar, EP, and Diamante projects in Sonora. At Pilar project, Colibri received the notice from Tocvan Ventures Corp., that it has met all conditions set forth in its 2019 option agreement with Colibri to earn an initial 51% of its advanced exploration stage Pilar Gold & Silver Project. Under the terms of the agreement, Tocvan has until March18th, 2024 to purchase the remaining 49% of Pilar from Colibri by paying an additional CAD $2M in cash and issuing a 2% net smelter on the project to Colibri. Tocvan would maintain an option to buy back 1% of the royalty for CAD $1M. At EP project, Colibri recently completed 1 2,200m and consolidated land position consisting of Colibri’s long held Evelyn Gold Project and the contiguous Plomo Gold Project. At Diamante project, the company is currently completing a geological mapping and sampling program, taking a property-wide approach as well as a more detailed evaluation of selected showings. Sampling includes outcrop sampling as well as property-wide stream sediment sampling. The Company anticipates initiating a drill program at Diamante before the end of the calendar year.

ON MINING

  • Orla Mining Ltd., reported Q3, 2023 production results from its Camino Rojo project in Zacatecas. The company mined 1,840,224 tonnes of 0.81 g/t Au, processed 1,716,819 tonnes of 0.85 g/t Au, and stockpiled 123,404 tonnes of low grade of 0.28 g/t Au, to produce 32,425 Oz Au, of which 31,060 were sold.
  • Gold Resource Corporation announced preliminary Q3, 2023 production results from its Don David Gold Mine in Oaxaca. The company milled 128,884 tonnes (129,099 combined) of 2.63 g/t Au, 64 g/t Ag,0.32% Cu, 2% Pb, and 4% Zn to produce 3,982 Oz Au, 208.9K Oz Ag, 548.8K Lb Cu, 2.12M Lb Pb, and 5.76 M Lb Zn at realized prices of USD $1,934 per Oz Au, USD $24 per Oz Ag, USDS $8,185 per tonne of Cu, USD $2,196 per tonne of Pb, and USD $2,195 per tonne of Zn.
  • Equinox Gold Corp., announced that it will present its Q3, 2023 financial and operating results on October 31, 2023 (Los Filos Mine, Guerrero).
  • GoGold Resources Inc., reported Q3, 2023 production results from its Parral Tailings project in Chihuahua and provided an update on its Parral Zn circuit. The company produced during the quarter 169.4K Oz Ag, 1,106 Oz Au and 257.6K Lb Cu (300.8K Oz AgEq). The company also reported that the construction of a zinc circuit, in addition to the SART plant at Parral, is well underway and projected to be completed by the end of this year, with the project on budget and on schedule.
  • Santacruz Silver Mining Ltd., announced Q3, 2023 production results from its Zimapan Mine in Hidalgo. The company milled 192,158 tonnes of 80 g/t Ag, 1% Pb, 2.5% Zn, and 0.29% Cu with metallurgical recoveries of 76%, 82%,18%, and 46% respectively, to produce 378.7K Oz Ag, 3.42M Lb Pb, 8.36M Lb Zn, and 564.5K Lb Cu.
  • Avino Silver & Gold Mine Ltd., reported Q3, 2023 production results from its Avino Mine in Durango. The company milled 154,507 tonnes of 56 g/t Ag, 0.58 g/t Au, and 0.42% Cu with metallurgical recoveries of 86%, 72%, and 80% respectively to produce 237.2K Oz Ag, 2,077 Oz Au, and 1.14M Lb Cu (591.2K Oz AgEq).
  • Sierra Metals Inc., announced Q3, 2023 production results from their Bolivar and Cusi Mines in Chihuahua. At Bolivar Mine, the company processed 362,890 tonnes of 0.77% Cu, 15 g/t Ag, and 0.37 g/t Au with metallurgical recoveries of 92.1%, 81.95%, and 69.58% respectively to produce 5.67M Lb Cu, 148K Oz Ag, and 2,965 Oz Au (8.1M Lb CuEq). At Cusi Mine, Sierra Metals processed 29,050 tonnes of 127 g/t Ag, 0.15 g/t Au, and 0.45% Pb with metallurgical recoveries of 83.94%, 58.5%, and 87.83% respectively, to produce 99K Oz Ag, 81 Oz Au, and 251K Lb Pb (117K Oz AgEq).
  • Bear Creek Mining Corporation reported Q3, 2023 production results from its Mercedes Mine in Sonora. The company mined 123,505 tonnes and processed 125,208 tonnes of 2.42 g/t Au with a metallurgical recovery of 94.03%, to produce 9,158 Oz Au and 34,929 Oz Ag, of which 6,298 Oz Au were sold and 2,720 Oz Au were streamed. Bear Creek also provided gold production guidance for 2023 to 39,000-45,000 Oz Au.

ON FINANCING

  • Sierra Madre Gold and Silver Ltd., announced the amendment of all 5,123,092 subscription receipts, in order to extend the escrow release conditions and termination (as both terms are defined in the May 31 and Sep 14 News Releases) for an additional 30-day period (La Guitarra Mine Complex, Estado de Mexico State).
  • Bear Creek Mining Corporation announced the issuance of a secured convertible promissory note in the amount of USD $26,632,458 to defer a USD $25M current liability originally payable to a wholly-owned subsidiary of Equinox Gold Corp., Commencing on November 30, 2023, the company will make monthly interest payments in the amount of USD $155,356 to Equinox Gold with the balance of the principal and accrued interest payable in full on the Maturity Date (Mercedes Mine, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Sonoro Gold Corp., filed a NI 43-101 technical report for a Preliminary Economic Assessment (PEA) on its Cerro Caliche project in Sonora, with an effective day of August 28, 2023. PEA highlights include: pre-tax net present value discounted at 5% (NPV5) of USD $71.4M; pre-tax internal rate of return (IRR) of 59%; after-tax NPV5 of USD $47.7M with an IRR of 45%; gold recovery of 72% and silver recovery of 27%; 9 year life of mine (LOM) with 297,575 Oz AuEq;  LOM annual average production of 33K Oz AuEq at 0.45 g/t AuEq; initial CAPEX costs of USD $15.5M, including USD $1.83M in contingency; sustaining capital costs of USD $15.5M; cash operating cost of USD $1,295 per Oz AuEq; all included sustaining cost (AISC) of USD $1,395 per Oz AuEq; and a payback period of 2.9 years.
  • Sierra Madre Gold and Silver Ltd., announced that it has engaged Stantec Consulting International LLC to examine tailings deposition options at its La Guitarra Mine Complex in Estado de Mexico State. Results are expected towards the end of Q4, 2023.
  • Endeavour Silver Corp., released positive drill results from its ongoing drilling program being conducted at El Curso and Porvenir Dos Areas at its Guanacevi project in Durango. Drilling highlights (true widths reported) at El Curso Area include holes UCM-117 with 1.09 g/t Au and 384 g/t Ag (471 g/t AgEq) over 5.64m, including 4.73 g/t Au and 1,730 g/t Ag (2,076 g/t AgEq) over 0.37m; hole UCM-120 with 3.43 g/t Au and 1,265 g/t Ag (1,540 g/t AgEq) over 2.20m, including 14.35 g/t Au and 2,780 g/t Ag (3,944 g/t AgEq) over 0.21m; hole UCM-123 with 1.4 g/t Au and 265 g/t Ag (378 g/t AgEq) over 3.2m; and hole UCM-125 with 2.77 g/t Au and 859 g/t Ag (1,080 g/t AgEq) over 3.42m, including 8.22 g/t Au and 2,610 g/t Ag (3,268 g/t AgEq) over 0.64m. Within the El Curso concessions, 18 new holes have been completed totaling 3,162 metres. Drilling highlights (true widths reported) at Porvenir Dos Area include holes APD-13 with 1.08 g/t Au and 657 g/t Ag (743 g/t AgEq) over 3.47m, including 3.24 g/t Au and 4,090 g/t Ag (4,349 g/t AgEq) over 0.20m: and hole APD-23 with 1.15 g/t Au and 414 g/t Ag (506 g/t AgEq) over 2.77m, including 3.45 g/t Au and 1,170 g/t Ag (1,446 g/t AgEq) over 0.45m. Near Porvenir Dos, on the Alondra concessions, 19 new holes have been completed totalling 5,854 metres. “Endeavour plans to continue drilling towards the northwest to test continuity with the objective to access ore from development advancing between the El Curso and Porvenir Dos areas that would eventually be connected”.
  • Oroco Resource Corporation filed a Preliminary Economic Assessment (PEA) and updated Mineral Resource Estimate (MRE) for the North and South Zones of its Santo Tomas project in Sinaloa. Highlights of the PEA include a USD $2.33 B pre-tax NPV (8%) and USD $1.24 B after-tax NPV (85); 23% pre-tax IRR and 17.3% after-tax IRR; total life of mine (LOM) payable copper production of 4,749 M Lb; pre-tax payback of 4.1 years and after-tax pay-back of 5 years from first concentrate production; initial cost estimated at USD $1,339.9M , sustaining and expansion capital costs estimated at USD $1,134.5M; average annual LOM C1 cash cost of USD $1.66/Lb Cu on by-product basis; and an ultimate pit design constrained resource of 338M tonnes of indicated and 460M of inferred material. The table below shows the MRE for the Santo Tomas project:

Notes:

  1. Mineral resources are not mineral reserves and do not have demonstrated economic viability.
  2. Table abbreviations include: % = percent, g/t = grams per metric tonne, Mlb = million pounds, Koz = thousand troy ounces.
  3. The mineral resources are reported at an effective cut-off grade (CoG) of 0.15% Cu.
  4. All figures are rounded to reflect the relative accuracy of the estimates. Totals in the above table may not sum or recalculate from related values in the table due to rounding of values in the table, reflecting fewer significant digits than were carried in the original calculations.
  5. The mineral resources exclude identified oxide mineralization due to a lack of confidence in recovery assumptions of oxidized tonnages at this phase of the Project.
  6. Metal assays are capped where appropriate. At the PEA level of the Project, it is the Company’s opinion that all the elements included in the copper equivalent calculation have a reasonable potential to be recovered and sold.
  7. All dollar amounts are presented in U.S. dollars.
  8. Bulk density is estimated on a block basis using specific gravity data collected on diamond drill core.
  9. Reasonable prospects of eventual economic extraction (RPEEE) are demonstrated through use of an economic pit shell based on long-term copper price of $4.00/lb, molybdenum price of $13.50/lb, a gold price of $1,700/oz, and a silver price of $22.50/oz. Metal recovery factors used in the determination of CoG and economic pit shell for Cu, Mo, Au, and Ag have been applied based on metallurgical recovery calculations based on average feed grade. A 45-degree slope angle was applied.
  10. The Huites Reservoir boundary was ignored for the purposes of mineral resource determination. This is consistent with the previous study.
  11. The economic CoG was calculated to be 0.11% Cu but for consistency with the previous study, Oroco has elected to use an effective CoG at 0.15% Cu. CoG assumptions include a copper price of $4.00/lb., mining cost of $2.27/t, processing costs of $4.23/t, G&A costs at $0.65/t, mine recovery at 98%, mean Cu recovery at 83.7%, and royalties at 1.5%, have been applied in consideration of the RPEEE.
  12. Equivalent Copper (CuEq) percent is calculated with the formula CuEq% = ((Cu grade * Cu recovery [83.7%] * Cu price) + (Mo grade * Mo recovery [59.1%] * Mo price) + (Au grade * Au recovery [58.6%] * Au price) + (Ag grade * Ag recovery [54.2%] * Ag price)) / (Cu price * Cu recovery [83.7%]). It assumed that the Santo Tomas Project would produce a conventional (flotation) copper concentrate product based on metal recoveries indicated by PEA metallurgical test work and mean Indicated Resource feed grades.
  13. Reported contained individual metals in the table above represent in-situ metal, calculated on a 100% recovery basis, except for CuEq% which applies mean recovery assumptions (see Note 12).
  • Gatos Silver Inc., announced filing of updated technical report on its Cerro Los Gatos Mine, Chihuahua.  The 2023 Technical Reports, titled “Mineral Resource and Mineral Reserve Update, Los Gatos Joint Venture, Chihuahua, Mexico” dated October 20, 2023, support the disclosure made by the Company in its September 6, 2023 press release announcing an updated Cerro Los Gatos mineral reserve, mineral resource, and life of mine plan. 

ON DEALS AND CORPORATE ISSUES

  • Goldgroup Mining Inc., exercised its option to purchase all of the issued and outstanding common shares of Minera Cerro Esperanza S.A de C.V. (MER), which owns the Company’s previously held Cerro Prieto mining concessions, in Sonora, “by a full option price of USD $1.85M in common shares of the Company and will issue 25,067,500 common shares to Calu Opportunity Fund LLP (Calu), the owner of MER and a material shareholder of the Company. As a result of the transaction, Calu will own, directly and indirectly, 55,297,000 common shares of the Company representing approximately 66.83% of the Company’s issued and outstanding share capital. The completion of the transaction is subject to final TSX approval”.
  • Vortex Metals Inc., announced the attendance at the 121 Mining Investment Conference in New York (Riqueza Marina project, Oaxaca).
  • Tocvan Ventures Corp., completed a definitive agreement with a private owner to acquire 100% interest in 2,172.7 hectares adjacent to Pilar project in Sonora by paying USD $4M in cash and the issuance of 2.5M of common shares over the 5-year term of the agreement. A total minimum work commitment of USD $1M is considered over the agreement. The title owner will retain a 2% NSR on the properties acquired. After the initial 5-year term the company can elect to extend the agreement an additional 10 years by starting advanced royalty payments or purchase full title ownership through an additional cash payment of USD $500K.
  • Silver Viper Minerals Corp., amended the terms of its option to acquire 100% ownership of three mineral concessions totaling 2,102 hectares at the La Virginia project, Sonora. “The amendment clarifies that the USD $775K (or CAD $1,042,142.50, based on a fixed exchange rate of USD$-CAD$ of 1.3447 set out in the amendment) of Shares issuable by the Company to satisfy as a portion of the final payment under the Agreement in June 2024, will be issued with a deemed price per Share equal to the higher of (i) the closing price of the Shares on the TSX Venture Exchange on June 24, 2024 or (ii) CAD $0.095. In addition, the amendment also sets out that the Company shall not issue more than 10,969,922 Shares in satisfying this portion of the consideration due to the vendors. As previously announced by the Company, in addition to such issuance of Shares, the Company will also make a cash payment of US$200,000 to the vendors. In satisfaction of the Company’s payment of the USD $1,5M (or CAD $2.01M, based on an exchange rate of USD$-CAD$ of 1.3447) of Shares due to the vendors in April 2023 under the amended Agreement, the Company confirms it issued the vendors an aggregate of 16,808,750 Shares at a deemed price per share of CAD $0.12 on April 25, 2023”.

ON SOCIAL RESPONSIBILITY

  • Minera Media Luna, a subsidiary of Torex Gold Resources Inc, renewed the agreement of the Avanzando Juntos scholarship program with 60 young people, 33 of whom are pursuing their high school studies and 27 plus a bachelor’s degree. This is the sixth consecutive year in which the company supports young students from the municipalities of Cocula and Tepecoacuilco; and the second to young people from Eduardo Neri, having MXP $441K of investment that the company grants to the students with the best averages of the January-June 2023 school semester, thus adding an annual amount of MXP $ 882K. The people benefiting from the Avanzando Juntos scholarship program are from the communities of Nuevo Balsas, Real del Limón, La Fundición, San Nicolás, Acalmantlila, Tlanipatlan, Atlixtac in the municipality of Cocula; as well as Puente Sur Balsas and Mazapa, in the municipality of Eduardo Neri; and from Tepecoacuilco to young people from the Valerio Trujano town. The company’s objective has been to reaffirm the commitment to strengthen education as a tool in the development of social and human capital, for a prosperous future.

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 in a Carbonate Replacement Deposit (CRD) in Durango, Mexico. Photo by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the Second Week of September 2023

/ Gambusino Prospector / Leave a comment

By Jorge Cirett                                             

During the 37th week of the year (September 11th to September 17th, 2023), 21 companies working in Mexico posted news releases. Two companies reported exploration advances on their properties, and one company reported quarterly results. Six companies informed on the opening or closing of private placements, their assistance to investor conferences, the amendment of terms on subscriptions and information circulars.  Five companies presented drilling results from their properties, one presented an updated mineral resource for its property, another two presented updated PEAs and three more updated on exploration activities on their projects. One company intends to change name and one other informed on litigation advances against the federal government. ON MEXICO ISSUES, no relevant news. ON EXPLORATION, In Oaxaca, Vortex Metals updated on exploration work in Zaachila. In Zacatecas, Radius Gold commenced drilling at Tropico. ON MINING, Starcore International Mines reported results for its first quarter 2023. ON FINANCING, Colibri Resource informed on the closing of a financing round for US$687 K. Sailfish Royalty declared a quarterly dividend. Fortuna Silver and Regency Silver are to attend investor conferences. Sierra Madre Gold and Silver amended the terms of subscription receipts. Bear Creek Mining updated on the convertible promissory notes for the payment of US$25 M on the acquisition of the Mercedes mine in Sonora. ON RESOURCES AND DEVELOPMENT, Vizsla Silver reported drilling results from Panuco, in Sinaloa. Prime Mining announced expansion drilling results from Los Reyes, in Sinaloa. Silver Tiger Metals presented an updated mineral resource estimate for its El Tigre project in Sonora. GoGold Resources released the updated PEA on Los Ricos Sur project in Jalisco. Gold Resource updated on expansion and infill drilling at its Don David mine in Oaxaca. Alamos Gold released excellent drilling results from two target areas on its Mulatos property in Sonora. Sierra Madre Gold and Silver updated on exploration at recently acquired La Guitarra property in Estado de Mexico. Avino Silver & Gold Mines released results from deep drilling at Avino, in Durango. Orex Minerals informed on hyperspectral alteration studies being carried out at Coneto, in Durango. Golden Minerals filed an updated PEA for Velardeña, in Durango. ON DEALS AND CORPORATE ISSUES, Golden Tag Resources intends to change name to Silver Storm Mining. Almaden Minerals reported the Mexican Federal Administrative Court granted a provisional injunction to Almaden, on its fight to get their mining concessions back into good standing. Argonaut Gold reached an agreement with four ejidos to operate for three more years at El Castillo and San Agustín properties in Durango. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • No Relevant News.

ON EXPLORATION

  • Radius Gold Inc. commenced drilling at its Tropico project in Zacatecas. The company envisages a 2,000 m drill program on the hot spring type sinter and breccia pipe system, targeting a “Fresnillo-style” mineralized system at depth, and near-surface bulk mineable gold mineralization on a 450 m by 250 m breccia pipe.
  • Vortex Metals Inc. completed the phase I geologic field program for the environmental study at Zaachila, in Oaxaca. “A total of 13 trenches have been excavated … across exposures of weakly metamorphosed Upper Jurassic sedimentary, volcanic and intrusive rocks where historical surface sampling identified copper mineralization. A total of 387 meters of trench have been cut yielding a total of 271 chip samples” with results pending. Copper mineralization has been observed as malachite, azurite, chalcopyrite and bornite, associated to silica-rich exhalite beds, as quartz-carbonate veinlets cutting silicified and chloritized meta-sediments and volcanics (green schist facies) and as bedded units in the metasediments. “In a few of the less oxidized exposures, sericite was widely observed”.

ON MINING

  • Starcore International Mines Ltd. reported results for its first quarter ended July 31, 2023. At the San Martín Mine in Querétaro, 57.7 K tonnes were milled, averaging 1.14 gpt Au, 14.4 gpt Ag, recovering 84.0% Au, 45.8% Ag, to produce 1,800 Oz Au, 12.3 K Oz Ag, at cash cost $2,158 per Oz AuEq. At the end of the period cash on hand was $5.7 M, and working capital $6.2 M. “Our quarterly production reflects our recent difficulties in reaching our higher-grade ore bodies or stopes….. We expect to achieve our targets over the remainder of the year as we are currently completing the development to the high-grade zones”.

ON FINANCING

  • Sailfish Royalty Corp. declared the company’s third quarterly dividend for 2023, in the amount of US$0.0125 per common share (Gavilanes, Durango).
  • Fortuna Silver Mines Inc. announced it is going to be present at the Gold Forum Americas in Colorado Springs, Colorado (USA), from September 17 to September 20, 2023 (San Jose, Oaxaca).
  • Regency Silver Corp. announced its chairman is to be present at the 2023 Kinvestor Days Virtual Conference on September 19, 2023 (Dios Padre, Sonora).
  • Colibri Resource Corp. closed a second and final tranche of its non-brokered private placement, for gross proceeds of US$200 K, which combined with the first tranche proceeds total US$687 K (Evelyn, Sonora).
  • Sierra Madre Gold and Silver Ltd. amended the terms of 5.12 M subscription receipts in order to extend the escrow release conditions and termination for an additional 30-day period (La Guitarra, Estado de México).
  • Bear Creek Mining Corp. updated on the convertible promissory note intended to be issued to defer a US$25 M current liability originally payable to a wholly-owned subsidiary of Equinox Gold Corp. and is issuing an amendment to its management information circular dated August 9, 2023. “The Company further announces that it has closed an unsecured and non-convertible demand loan (the “Loan”) from EquinoxGold in the amount of US$1.3 million, the proceeds of which will be used for working capital purposes and further optimization of the Mercedes Mine”. The amendment refers to an exemption of formal valuation requirement described on section 5.5(b) of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (Mercedes, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Vizsla Silver Corp. reported results from 13 new holes targeting the La Luisa vein on its Panuco project, in Sinaloa. Highlighted true-width intervals comprise 11.20 m @ 7.14 gpt Au, 229 gpt Ag 0.3% Pb, 1.6% Zn; 8.90 m @ 2.85 gpt Au, 61 gpt Ag, 0.1% Pb, 2.2% Zn (including 0.77 m @ 10.35 gpt Au, 98 gpt Ag, 0.4% Pb, 15.8% Zn); 7.70 m @ 1.90 gpt Au, 67 gpt Ag, 0.7% Pb, 0.3% Zn (including 0.54 m @ 12.35 gpt Au, 250 gpt Ag, 5.6% Pb, 10.4% Zn and 1.08 m @ 1.48 gpt Au, 171 gpt Ag, 1.6% Pb, 11.2% Zn); 5.00 m @ 2.49 gpt Au. 155 gpt Ag, 0.9% Pb, 4.5% Zn. 8.85 m @ 0.98 gpt Au, 67 gpt Ag, 0.1% Pb, 1.0% Zn; 1.16 m @ 1.12 gpt Au, 76 gpt Ag, 0.2% Pb, 14.9% Zn. To date Vizsla Silver has reported 33 holes from La Luisa outlining a mineralized footprint 700 m long, 400 m down dip and 3.07 m in width, averaging 175 gpt Ag, 3.40 gpt Au, 0.28 % Pb, 1.33 % Zn (or 449 gpt AgEq).
  • Prime Mining Corp. reported expansion drill results from Los Reyes project in Sinaloa. “This drilling targeted areas extending materially beyond the mineral resource envelope at the Z-T, Guadalupe and Central Zones” which are the ones with defined resources. Highlighted true width intervals comprise 20.50 m @ 3.16 gpt Au, 55 gpt Ag (including 4.0 m @ 9.71 gpt Au, 85 gpt Ag); 2.20 m @ 10.10 gpt Au, 264 gpt Ag (including 1.20 m @ 17.80 gpt Au, 437 gpt Ag); 0.95 m @ 18.20 gpt Au, 2,024 gpt Ag; 1.0 m @ 5.47 gpt Ag, 615 gpt Ag.
  • Silver Tiger Metals Inc. announced an updated Mineral Resource Estimate for its El Tigre project in Sonora. “A total of 482 drill holes (124,851 metres) and 3,160 surface and adit channel samples (6,473 metres) were used in the Mineral Resource Estimate”, which includes the South Zone In Pit, South Zone Out-of-Pit, North Zone Out-of-Pit, Vein (S & N) Total, Low Grade Stockpile and Tailings Zones. Indicated Resources comprise 46.4 M tonnes @ 0.39 gpt Au, 25 gpt Ag, 0.01% Cu, 0.03% Pb, 0.06% Zn, containing 575 K Oz Au, 37.2 M Oz Ag, 9.4 M Lb Cu, 35.5 M Lb Pb, 64.3 M Lb Zn. Inferred resources comprise 20.9 M tonnes @ 0.56 gpt Au, 78 gpt Ag, 0.04% Cu, 0.13% Pb, 0.22% Zn, containing 373 K Oz Au, 52.6 M Oz Ag, 18.1 M Lb Cu, 59.7 M Lb Pb, 103.4 M Lb Zn.
  • GoGold Resources Corp. released the updated preliminary economic assessment (PEA) and mineral resource estimate for its Los Ricos South project in Jalisco. The report foresees commodity prices of $23.75 per Oz Ag and $1,850 per Oz Au, an After-Tax (5%) net present value of US$458 M, an After-Tax IRR of 37%, and an 11-year mine life (LOM) producing 88 M Oz AgEq (47 M Oz Ag, 493 K Oz Au, 14 M Lb Cu), with initial capital costs of $148 M, expansion capital of $69 M and sustaining capital of $72 M during LOM, producing 8 M Oz AgEq per year at cash cost $8.15 per Oz AgEq and all-in sustaining costs of $9.02 per Oz AgEq. The new resource estimate envisages 11.1 M tonnes averaging 1.43 gpt Au, 151 gpt Ag, 0.11% Cu in the measured and indicated resources category and 1.4 M tonnes at 1.22 gpt Au, 120 gpt Ag, 0.28% Cu in the inferred category, containing 511 K Oz Au, 53.8 M Oz Ag, 27.3 M Lb Cu (1.26 Moz AuEq) and 54.1 K Oz Au, 5.3 M Oz Ag, 8.5 M Lb Cu (140.9 K Oz AuEq) respectively.
  • Gold Resource Corp. provided an update on expansion and infill diamond drilling on the Arista, Three sisters, Gloria and Switchback vein systems at its Don David mine in Oaxaca. Highlighted true width intervals comprise 5.63 m @ 1.87 gpt Au, 279 gpt Ag, 0.2% Cu, 0.9% Pb, 1.6% Zn; 6.49 m @ 1.33 gpt Au, 21 gpt Ag, 0.17% Cu, 0.4% Pb, 2.1% Zn; 6.13 m @ 0.32 gpt Au, 214 gpt Ag, 0.76% Cu, 4.3% Pb, 3.0% Zn; 4.87 m @ 0.09 gpt Au, 47 gpt Ag, 0.47% Cu, 1.1% Pb, 7.2% Zn; 2.49 m @ 0.96 gpt Au, 27 gpt Ag, 1.01% Cu, 1.1% Pb, 9.7% Zn; 3.46 m @ 0.24 gpt Au, 198 gpt Ag, 0.74% Cu, 0.6% Pb, 4.9% Zn; 6.33 m @ 0.14 gpt Au, 60 gpt Ag, 0.62% Cu, 0.1% Pb, 2.2% Zn; 2.62 m @ 1.93 gpt Au, 73 gpt Ag, 0.81% Cu, 1.6% Pb, 10.4% Zn; 6.56 m @ 1.06 gpt Au, 27 gpt Ag, 0.22% Cu, 0.7% Pb, 2.1% Zn; 6.49 m @ 0.11 gpt Au, 78 gpt Ag, 0.64% Cu, 1.5% Pb, 2.9% Zn. “Five underground diamond drill rigs are currently operating … more than 100 drill holes and 25,000 meters of core has been drilled year-to date in 2023…. These drill results will be incorporated into a 2023 resource estimate update”.
  • Alamos Gold Inc. released drilling results from the Puerto del Aire deposit and the Capulin target at its Mulatos property in Sonora. Puerto del Aire is a high-grade underground deposit adjacent to the Mulatos pit, not included in the mineral resources, and the Capulin target is four km east of the Mulatos pit. Highlighted true width core intervals comprise 7.05 m @ 41.46 gpt Au; 9.50 m @ 18.32 gpt Au; 9.45 m @ 13.62 gpt Au; 1.20 m @ 85.80 gpt Au; 17.60 m @ 5.58 gpt Au; 18.70 @3.30 gpt Au; 6.0 m @ 10.42 gpt Au; 15.10 m @ 3.86 gpt Au; 11.50 m @ 3.21 gpt Au; 9.45 m @ 3.84 gpt Au in Puerto del Aire, and core length intercepts of 120.85 m @ 2.73 gpt Au (including 29.05 m @ 9.31 gpt Au); 6.0 m @ 3.65 gpt Au; 8.80 m @ 0.99 gpt Au in the Capulin target. Three drill rigs are currently working on the Capulin target, two defining the limits of known mineralization and one testing along the 2 km long Capulin fault. The 2023 exploration budget has been increased to 24.5 M, including 50,000 m of drilling at Puerto del Aire and 24,000 m of drilling on several high priority targets including Refugio, Halcon West, Carricito, Bajios, and Cerro Pelon West.
  • Sierra Madre Gold and Silver Ltd. Updated on its exploration activities at the past producing La Guitarra mine in Estado de México. In February 2023 the company started a 2,000-scale geologic mapping program, delineating to date nearly 53 km of mineralized quartz veins, breccias and stockwork zones hosted in metasediments and andesites, with hundreds of old shafts, cross cuts, adits, and prospect pits having been located. “ The La Guitarra Mine is a permitted, past-producing underground mine which includes a 500 t/d processing facility that operated until mid-2018”.
  • Avino Silver & Gold Mines Ltd. released the results from four holes drilled on the deepest part of the Avino mine, in Durango. The known depth extent of the mineralization is of at least 750 m vertically, which is assessed as unusual for Mexican epithermal deposits. Highlighted true width intercepts comprise 44.40 m @ 0.21 gpt Au, 31 gpt Ag, 0.70% Cu (including 9.85 m @ 0.58 gpt Au, 42 gpt Ag, 1.10% Cu); 27.15 m @ 0.07 gpt Au, 36 gpt Ag, 0.39% Cu; 13.20 m @ 0.09 gpt Au, 59 gpt Ag, 0.47% Cu; 6.60 m @ 0.12 gpt Au, 27 gpt Ag, 0.92% Cu. “Four holes totalling 2,040 meters, were drilled below Level 17 in this drill campaign … The persistence of silver and copper grade continuity from surface down a plunge distance of over 1,100 metres with increasing copper grades supports the possibility of a deeper mineralized system which may be linked to a porphyry centre”.
  • Orex Minerals Inc. announced that hyperspectral alteration studies are now underway on the Coneto project in Durango, by JV partner Fresnillo PLC. “Both direct Corescan of selected drill core from silver and gold mineralized zones, plus a SpecTIR Survey covering district scale mapping, will be conducted. These methods aid in mineral identification through Short-Wave Infra-Red (SWIR) and Visible Near Infra-Red (VNIR) analysis”. The 4,800 hectares project displays low to intermediate sulfidation Au-Ag epithermal mineralization, with 38,613 m of drilling in 106 diamond holes.
  • Golden Minerals Co. filed an updated preliminary economic assessment (PEA) for the Velardeña property in Durango.

ON DEALS AND CORPORATE ISSUES

  • Golden Tag Resources Ltd. intends (subject to regulatory and shareholders approval) to change the company name from Golden Tag Resources Ltd. to Silver Storm Mining Inc. “(La Parrila, Durango).
  • Almaden Minerals Ltd. reported that the Mexican Federal Administrative Court granted a provisional injunction to Almaden “relating to the submission issued by Mexico’s Ministry of the Economy (“Economia”) to the district court (the “District Court”) which is overseeing the implementation of the February 2022 decision of Mexico’s Supreme Court (“SCJN”) requiring indigenous consultations prior to the granting of mineral titles to the Ixtaca project ……. It is expected that the Court will decide on the grant of a permanent injunction within the coming weeks, which if received would continue in effect until the Court has ruled on the revocation of the Economia Submission” (Ixtaca, Puebla).
  • Argonaut Gold Inc. reached an agreement with four local Ejidos to operate for three more years in the El Castillo and San Agustín properties in Durango.

ON SOCIAL RESPONSIBILITY

  • No relevant news.

On the image below: Silicified structure ridge on a project in the Sonoran Desert. Picture by Jorge Cirett.