The Mining and Exploration News in Mexico: Highlights on the Third Week of January, 2020.

 

Boiling texture in an epithermal quartz vein

By Miguel A Heredia

During the third week of the year (January 13th to January 19th, 2020), at least 27 press releases were announced by companies working in Mexico, with eight communicating production results, seven reporting on resources and developments, five informing on exploration results, two disclosing deals and corporate issues, two discussing issues on social responsibility, two commenting on Mexican issues, and one announcing financial rounds.  ON MEXICO ISSUES, The Mexican mining industry, the thirteenth largest in the world, is laying the groundwork for generating more investment in this important development engine. Mining  activity has increased in Tamaulipas, according to the General Directorate of Mines.  ON EXPLORATION, In Sonora, Silver Viper released drilling results from its La Virginia project and Aztec Minerals provided a 2020 outlook for its Cervantes project. In Chihuahua, Radius announced results from the third phase of drilling from its Amalia project. In Sinaloa, Vizsla Resources discovered a new high grade vein at its Panuco project. In Zacatecas, Advance Gold commenced the third phase geophysical survey at its Tabasquena project. ON MINING, Alamos Gold commenced operation at its Cerro Pelon mine in Sonora. Torex announced that it expects to produce between 420K to 480K Oz Au in 2020 (El Limón Guajes, Guerrero). Great Panther, GoGold, McEwen, Fortuna Silver, Avino, and Coeur reported Q4 and full year 2019 production and financial results from their Mexican operations.   ON FINANCING, Minera Alamos closed a private placement with Osisko for gross proceeds of $6M. (Santana project, Sonora). ON RESOURCES AND DEVELOPMENT, Starcore staked two new claims near its San Martin Mine in Querétaro. Prime Mining retained a consulting company to complete an estimate of the Au and Ag resources for its Los Reyes mine in Sinaloa. Capstone presented expansion and infill drilling results from its Cozamine mine in Zacatecas. Torex announced an updated resource estimate for its Media Luna project in Guerrero.  SilverCrest announced it plans to release in-fill and expansion drill results from six areas in Q1, 2020. Minera Alamos commenced construction of its Santana mine in Sonora. Southern Silver reported that metallurgical test work confirmed that a marketable Cu, Pb, Zn concentrate can be produce at its Cerro Las Minitas project in Durango. ON DEALS AND CORPORATE ISSUES, Sonoro Metals granted stock options to certain directors, officers, and consultants (Cerro Caliche project, Sonora). Radius signed a binding option agreement to acquire from a private family an 800 Ha property called Palmillas, which is adjacent to its Amalia project in Chihuahua. ON SOCIAL RESPONSIBILITY, The Mining Fund contributed in the road construction in the municipality of Tepehuanes, Durango. The Peñoles Community Center will give new human development workshop.

ON MEXICO ISSUES

  • The Mexican mining industry, the thirteenth largest in the world, is laying the groundwork for generating more investment in this important development engine. The Ministry of Economy works to have a financing model like the Canadian one. One of the government’s bets is that Mexico, with private investment, be a producer of rechargeable Li batteries for electric cars. José Francisco Quiroga Fernández, the Under Secretariat of Mining said in an interview, that USD $ 100B will be the value of annual Li sales in 2029, according to Bloomberg. 243M tonnes of Li are estimated to be in the Sonora deposits. At the moment that market is worth just over USD $22B; However, according to Bloomberg NEF estimates in 2023 it exceeds USD $40B, in 2025 it will be USD $60B and in 2030, USD $116B, that is to say almost 420% more than the global sales of 2019.
  • Mining activity has increased in Tamaulipas, according to the General Directorate of Mines. The state has 124 mining concessions in 19 of their municipalities. Profits produced by the mineral extraction of Pb, Zn, Cu, Au, Ag, serpentine, and stone aggregates exceed MXP $2,000M per year.

ON EXPLORATION

  • Silver Viper Minerals Corp., announced drilling results for the first three holes of the phase 2 from its Virginia project in Sonora. Significant results were encountered in hole LV19-209 with 3.22 g/t Au and 1,054 g/t Ag (1,280 g/t AgEq) over 1.8m, and other interval with 2.50 g/t Au and 27 g/t Ag (202 g/t AgEq) over 7m, including 5.27 g/t Au and 41 g/t Ag (410 g/t AgEq) over 3m; hole LV19-210 with 1.47 g/t Au and 216 g/t Ag (319 g/t AgEq) over 6m, including 6.32 g/t Au and 1,071 g/t Ag (1,513 g/t AgEq)over 1m; and hole LV19-211 with 13.39 g/t Au and 446 g/t Ag (1,384 g/t AgEq) over 4.5m, including 58.3 g/t Au and 1,923 g/t Ag (6,004 g(t AgEq) over 1m, and other interval with 1.37 g/t Au and 40 g/t Ag (136 g/t AgEq) over 9m. Phase II will consists of 5,000m in approximately 20 holes.
  • Aztec Minerals Corp., provided a 2020 outlook for its Cervantes project in Sonora. It plans to finalize the JV agreement with Kootenay in January 2020, and secure a senior partner to conduct an aggressive exploration program to advance both near surface oxide Au mineralization and deeper porphyry Au-Cu targets.
  • Radius Gold Inc., announced results from the recently completed third phase of drilling from its Amalia project in Chihuahua. Significant results were encountered in hole AM-DD19-18 with 12.5 g/t Au and 2,320 g/t Ag over 1.3m, and 1.4 g/t Au over 13.7m; and hole AM-DD19-19 with 0.5 g/t Au and 22 g/t Ag over 7.4m. Holes AM-DD19-20 and 21 only encountered anomalous Au-Ag values at the San Pedro fault. Radius reported that it has signed a binding agreement to acquire the 800 Ha Palmillas property from a private family which hosts high-grade epithermal Au-Ag mineralization and is adjacent to Amalia project.
  • Vizsla Resources Corp., discovered a new high grade vein at its Panuco property in Sinaloa. This vein consists of crystalline quartz with disseminated argentite and pyrite hosted in a strongly weathered and demagnetized diorite. Sampling on this 500m long vein returned 3.07g/t Au and 312 g/t Ag (557 g/t AgEq over 3.4m; 1.34 g/t Au and 263 g/t Ag (370 g/t AgEq) over 0.7m; and 0.5 g/t Au and 107 g/t Ag (147 g/t AgEq) over 1.1m. Vizsla plans to drill this recently discovered vein in late January/early February as one of the twenty targets that will be drilled throughout 2020.
  • Advance Gold Corp., commenced the third phase geophysical survey at its Tabasquena project in Zacatecas to delineate a new chargeability anomaly identified on the most southerly of the reconnaissance lines from the second phase survey, and to do a long NW-SE line cross cutting all of the previous E-W survey lines to obtain a much deeper penetration. This new survey will consist of nine E-W lines of 1,000m long, with line spacing of 120m, and one line NW-SE of 4,000m long.

ON MINING

  • Alamos Gold Inc., commenced operation at its satellite mine Cerro Pelon, located 3km from its Mulatos mining unit in Sonora. The new open pit mine, whose current life is three years, has a capacity of 4,500 tons per day, has an independent crushing train and the material is deposited in the Mulatos mine yards, taking advantage of the existing mining infrastructure and avoiding more capital costs.
  • Torex Gold Resources Inc., announced that it expects to produce between 420K to 480K Oz Au in 2020, at a total cost per Oz Au sold of USD $640-$670, and AISC of USD $900-$960 per Oz Au sold.
  • Great Panther Mining Limited, reported Q4 and full year 2019 production and financial results from their Mexican operations. At Topia mine, Durango, the company processed in Q4, 2019, 18,854 tonnes with grades of 0.81 g/t Au and 424 g/t Ag for a total of 267 Oz Au, 242.8K Oz Ag, 1.09M Lb Pb, and 1.45M Lb Zn (449.6K Oz AgEq), that brings a total of 79,257 tonnes processed in the full year 2019, with grades of 0.94 g/t Au and 392 g/t Ag for a total of 1,344 Oz Au, 938.6K Oz Ag, 4.39M Lb Pb, and 5.77M Lb Zn (1.78M Oz AgEq). At Guanajuato mine complex, the company processed in Q4, 2019 a total of 48,710 tonnes with grades of 2 g/t Au and 136 g/t Ag for a total of 2,640 Oz Au and 180.5K Oz Ag (394.6K Oz AgEq), that brings a total of 187,610 tonnes processed in the full year 2019 with grades of 2.26 g/t Au and 116 g/t Ag for a total of 11,588 Oz Au and 590.8K Oz Ag (1.5M Oz AgEq).
  • GoGold Resources Inc., announced Q4, 2019 production results from its Parral Tailings project in Chihuahua. The company produced 2,407 Oz Au and 379K Oz Ag (585K Oz AgEq).
  • McEwen Mining Inc., reported that its El Gallo mine in Sinaloa produced in 2019 a total of 16,333Oz AuEq from residual leaching of the heap leach pad.
  • Fortuna Silver Mines Inc., announced Q4 and full year 2019 production results from its San Jose mine in Oaxaca. It processed 273,066 tonnes of 1.5 g/t Au and 249 g/t Ag to produce a total of 12K Oz Au and 2M Oz Ag. In the full year 2019, the company processed 1,068,722 tonnes of 1.57 g/t Au and 252 g/t Ag to produce 48.9K Oz Au and 7.9M Oz Ag.
  • Avino Silver & Gold Mines Ltd., reported Q4, and full year 2019 production results from its Avino mine in Durango, including Avino, San Gonzalo and stockpiles. During the Q4 period, it processed 188,436 tonnes of 0.47 g/t Au, 51 g/t Ag, and 0.43% Cu to produce 2,032 Oz Au, 220.8K Oz Ag, and 1.39M Lb Cu (608.6K Oz AgEq). In the full year 2019, the company processed 789,660 tonnes of 0.41 g/t Au, 54 g/t Ag, and 0.4%Cu to produce 6,912 Oz Au, 958.8 Oz Ag, and 4.97M Lb Cu (2.4M Oz AgEq).
  • Coeur Mining Inc., announced Q4 and full year 2019 production and financial results from its Palmarejo mine in Chihuahua. In the period Q4, it milled 486,779 tonnes of 2.25 g/t Au and 159 g/ Ag for a total of 28.7K Oz Au and 2M Oz Ag at an average realized price per Oz Au and Ag of $1,238 and $17.28 respectively. For the full year 2019, the company milled 1,755,957 tonnes of 2.49 g/t Au and 151 g/t Ag to produce a total of 111.9K Oz Au and 6.76M Oz Ag at an average realized price per Oz Au and Ag of $1,220 and $16.23 respectively.

ON FINANCING

  • Minera Alamos Inc., closed a private placement with Osisko Gold Royalties Ltd., for gross proceeds of $6M. With this, Osisko has increased its shareholding of the company´s common share from 12.3% to 18.7%. Net proceeds will be used for building its Santana mine in Sonora.

ON RESOURCES AND DEVELOPMENT

  •  Starcore International Mines Ltd., staked two new claims near its San Martin Mine in Queretaro with upside potential for exploration and development. These two new claims are located to the west of the current mineral rights of the mine and cover approximately 710 Ha. The company will release an exploration plan for the first part of 2020.
  • Prime Mining Corp., retained a consulting company to complete a 43-101 compliant technical report that includes a n estimate of the Au and Ag resources for its Los Reyes mine in Sinaloa. Prime geologists have prepared a database of 493 historic drill holes to establish a new 43-101 compliant in-pit resource. The company expects to expands the size of the indicated resource presented by the former owner of 380.1K Oz Au at a grade of 1.73 g/t Au and inferred resources of 155.2K Oz Au at a grade of 1.49 g/t Au, and Ag resources of 6.3M indicated Oz Ag at a grade of 29 g/t Ag, and 3.6M inferred Oz Ag at a grade of 35 g/t Ag.
  • Capstone Mining Corp., presented drilling results from 6 expansion holes and 21 infill holes collared at its Cozamin mine in Zacatecas. This brings the total drilled to date to 150 holes of a 200 hole program, aiming to double the current reserve base. Significant drill intercepts were encountered in hole CG-19-S445 (step out) with 5.31% Cu, 0.15% Zn, and 79 g(t Ag over a true width of 6.3m, including 9.8% Cu, 0.26% Zn, and 139 g/t Ag over 2.8m; hole CG-19-S443 (step out) with 4.95% Cu, 0.15% Zn, and 104 g/t Ag; hole CG-19-S436 with 6.13% Cu, 0.24% Zn, and 98 g/t Ag over a true width of 1.7m; hole CG-19-S441(step out) with 3.35% Cu, 0.34% Zn, and 62 g/t Ag over a true width of 5.4m; hole CG-10-S455 (infill) with 7.65% Cu, 0.35%Zn, and 141 g/t Ag over a true width of 5.4m; hole CG-19-S437 (infill) with 1.94% Cu, 0.15% Zn and 45 g/t Ag over a true width of 19.3m, including 5.9% Cu, 0.33% Zn, and 134 g/t Ag over a true width of 2.80m; hole CG-19-S440 (infill) with 8.29% Cu, 0.25%Zn, and 133 g/t Ag over a true width of 4.9m, including 10.75% Cu, 0.32% Zn, and 166 g/t Ag over a true width of 3.4M; and hole CG-19-S444 (infill) with 3.31% Cu, 0.11% Zn, and 82 g/t Ag over a true width of 11.8m, including 7.89% Cu, 0.2%Zn, and 198 g/t Ag over a true width of 3.7m.
  • Torex Gold Resources Inc., announced an updated resource estimate for its Media Luna project in Guerrero. It reported an indicated resource of 12.6M tonnes of 3.27 g/t Au, 38 g/t Ag, and 1.16% Cu for a total of 1.32 M Oz Au, 15.3M Ag, and 322M Lb Cu (2.24M Oz Au Eq at a grade of 5.5 g/t AuEq). Inferred resources are 33.5M tonnes of 2.49 g/t Au, 24 g/t Ag, and 0.93% Cu for a total of 2.68M Oz Au, 25.5M Oz Ag, and 686M Lb Cu (4.56M Oz AuEq at a grade of 4.23 g/t AuEq).
  • SilverCrest Metals Inc., announced it plans to release in Q1, 2020 in-fill and expansion drill results from Babi Sur, Babi Vista Discover, Babicanora Norte, Babicanora, Babicanora FW, and Area 118 Discovery veins. Drill results will be incorporated into the updated resource to be released in the FS in H1, 2020. SilverCrest plans to conduct a 125,000m of exploration drill program focused on expanding measured and indicated resources to be considered for inclusion in the initial reserve estimate with the FS. In anticipation of a positive construction decision based on the FS, and the approval from the government of the change of use of soil permit, the company will commence to construct offices, warehousing, water works, and roads access improvements in H1.
  • Minera Alamos Inc., commenced the construction of its Santana mine in Sonora. It plans to provide construction updates during the 6-8 months construction period. During January and February, the company along with members of the community will begin to prepare the areas designed for the leach pads and holding pods, as well as initiate road construction within the planned mine area.
  • Southern Silver Exploration Corp., announced that the metallurgical tests work at its Cerro Las Minitas project in Durango confirmed that a marketable Cu, Pb, and Zn concentrate can be produce, increasing its value compared with earlier batch testing. These results are highlighted by a 94.7% Zn recovery grading 54.0% Zn in the Zn concentrate and grades of 5,504g/t Ag and 65.1% Pb in the Pb concentrate. Ag strongly partitions into the Pb and Cu concentrates for a combined 83.8% Ag recovery into concentrates that traditionally receive favourable payable terms.

ON DEALS AND CORPORATE ISSUES

  • Sonoro Metals Corp., granted stock options to certain directors, officers and consultants of the company to purchase an aggregate of 3,040,000 common shares.
  • Radius Gold Inc., reported that it has signed a binding agreement to acquire the 800 Ha Palmillas property from a private family which hosts high-grade epithermal Au-Ag mineralization and is adjacent to Amalia project in Chihuahua. During due diligence evaluation, Radius sampled outcrops and old adits obtaining encouraging results, such as 9.5 g/t Au and 73 g/t Ag over 4m, and 1.54 g/t Au and 58 g/t Ag over 10.5m. The company can earn a 100% interest in the Palmillas property by making staged payments over a period of five years for a total USD $350K, of which USD $200K is a final payment at the end of five years.

ON SOCIAL RESPONSIBILITY

  • With an investment of MXP $9M, and a direct benefit for 1,200 residents of the area, Governor of Durango, José Rosas Aispuro Torres, delivered road infrastructure works, in compliance with one more commitment to the inhabitants of Tepehuanes. The state executive said that this is a work that was carried out thanks to the resource of the Mining Fund, which made it possible to build eight thousand square meters of pavement with hydraulic concrete, directly benefiting the inhabitants of four colonies of the Municipal head.
  • The Peñoles Community Center, will give a new human development workshop. It also announced that another of the Peñoles Community Center workshops with the highest demand is that of teaching English, which students attend to receive instruction three days a week in both morning and evening hours.

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

On the picture above, an epithermal quartz vein displaying boiling textures in a prospect in Zacatecas, Mexico.  Photo by Miguel A Heredia.

SilverCrest Provides 2019 Highlights and 2020 Outlook

SilverCrest_16012020

Vancouver, British Columbia–(Newsfile Corp. – January 16, 2020) – SilverCrest Metals Inc. (TSX: SIL) (NYSE American: SILV) (“SilverCrest” or the “Company”) is pleased to summarize its 2019 highlights and present its outlook for 2020. SilverCrest begins 2020 with a strong balance sheet with C$124 million in the bank and no debt. The Company also starts the year with a substantial backlog of exploration drill results to report in Q1, 2020. The Company is working to complete the Feasibility Study for a mine construction decision, to continue with an aggressive exploration program and accelerate development work on the Las Chispas Project (“Las Chispas”) in Sonora, Mexico.

Newmont Announces Full Year and Fourth Quarter 2019 Earnings Call

Newmont Corporation

DENVER–(BUSINESS WIRE)– Newmont Corporation (NYSE: NEM, TSX: NGT) (Newmont or the Company) today announced it will report full year and fourth quarter 2019 operations and financial results before the market opens on Thursday, February 20, 2020 and will hold a conference call at 10:00 a.m. Eastern Time (8:00 a.m. Mountain Time) the same day. The earnings call will also be carried on the Company’s website.

Hecla Reports 22% Higher Silver and 4% Higher Gold Production, Lower Debt, Growing Cash Balances

Hecla_07012020

COEUR D’ALENE, Idaho–(BUSINESS WIRE)– Hecla Mining Company (NYSE:HL) today announced preliminary silver and gold production results1 for the fourth quarter and full year 2019 as well as a significant reduction of net debt and an increase in cash position. The Lucky Friday Union workers have ratified the collective bargaining agreement, reversing the result of the vote held in early December, and many of the workers are expected to return to work.

GOLD RESOURCE CORPORATION DECLARES DECEMBER MONTHLY DIVIDEND

GRC-2019-12-26-1

COLORADO SPRINGS – December 26, 2019 – Gold Resource Corporation (NYSE American: GORO) (the “Company”) declares its monthly instituted dividend of one-third of a cent per common share for December 2019 payable on January 23, 2020 to shareholders of record as of January 13, 2020. Gold Resource Corporation is a gold and silver producer, developer and explorer with operations in Oaxaca, Mexico and Nevada, USA.

The Mining and Exploration News in Mexico: Highlights on the Third Week of December, 2019.

Phyllic alteration

By Miguel A Heredia

During the fifty-one week of the year (December 16th to December 22th, 2019), at least 28 press releases were announced by companies working in Mexico, with nine announcing financial rounds, seven disclosing deals and corporate issues, five discussing social issues, four reporting on resources and developments of their properties, two communicating production and financial results, and one commenting on Mexican issues.  ON MEXICO ISSUES, Mexico mining production showed signs of recovery. ON EXPLORATION, no relevant news. ON MINING, Starcore presented production and financial results for the second quarter ended October31, 2019 from its San Martin mine in Queretaro. Premier provided a year end operations update (Mercedes mine, Sonora).  ON FINANCING, Defiance extended its loan until December 21, 2020 for a balance of $1.2 M (San Acacio project, Zacatecas). Alamos Gold announced renewal of a normal course issuer bid, and an increase of a credit facility from USD $400M to USD $500M (Mulatos mine, Sonora). Orla finalized a credit agreement for USD $125M for the development of its Camino Rojo project in Zacatecas. First Mining closed a non-brokered flow-through equity financing for $2M (San Ricardo project, Sonora).  SilverCrest closed a CAD $92M bought deal financing, including CAD $12M over allotment option exercised in full (Las Chispas project, Sonora). Golden Minerals sold two non-strategies Mexican exploration properties to Industrias Peñoles for $3M. Mexus paid off two loan agreements which were coming due (Santa Elena mine, Sonora). Mithril announced its plan to raise up to A$4.9M by way of an entitlement issue to shareholders (Copalquin project, Durango). ON RESOURCES AND DEVELOPMENT, Argonaut presented a positive PFS for its Cerro Del Gallo project in Guanajuato, and increased company´s mineral reserves by 48%. Coeur provided an update on its exploration program at Palmarejo mine in Chihuahua. Azure commenced a 7,000m RC resource expansion drilling at its Loma Bonita deposit in Sonora. Industrias Peñoles commenced extraction and grinding tests at its Capela mine (former Rey de Plata mine) in Teloloapan, Guerrero. ON DEALS AND CORPORATE ISSUES, Discovery Metals announced the appointment of its new VP of Corporate Development and Investor Relations (Cordero project, Chihuahua). Equinox Gold and Leagold entered into a definitive agreement to combine in an at-market merge (Los Filos mine, Guerrero). Goldplay entered into a letter of intent agreement with Mako Mining Corp., to acquire 100% of the shares of Marlin Gold Mining Ltd. (San Marcial project, Sinaloa). Oroco presented results from its special annual general meeting for shareholders (Santo Tomás project, Sinaloa). Prize Mining announced the resignation of its CEO and the appointment of its replacement (Manto Negro project, Coahuila).   Mithril entered into an exclusive option agreement to acquire all the issued share capital of Sun Minerals Pty Ltd., which holds an exclusive option to earn up to 100% interest in the high grade Copalquin Au & Ag project in Durango.    ON SOCIAL RESPONSIBILITY, Zacatecas Mining Cluster held its second Talent Meeting with participation greater than the 30 people who previously registered to participate in the event. Ladies Committee of the AIMMGM and Outlet Minero promoted the environmental education in Zacatecas. Grupo Mexico participated in the conference of preventive culture in San Luis Potosi. Minera Peñasquito held Christmas celebration in Mazapil, Zacatecas. It also informed about the progress of the social programs that the mining company performs in the 25 communities of direct influence.

 ON MEXICO ISSUES

  • Mexico mining production, showed signs of recovery, at a time when companies move forward with their efforts to face the problems that hinder operations in a series of large mines. General production increased 1.0% in October compared to the same month last year, led by increases in Pb, Zn, and Ag, according to the INEGI statistics agency. The October increase was largely due to the improvement experienced by three metals. Pb production increased 22.7% to 26.1M Lb, Zn production rose to 12.2% to 78.5M Lb, and Ag production rose to 11.6% to 10.3M Oz. The hike occurs despite a major disruption during October at the Peñasquito mine in Zacatecas, one of Mexico’s largest producers of Au, Ag, Pb, and Zn.

ON EXPLORATION

  • No relevant news.

ON MINING

  • Starcore International Mines Ltd., presented production and financial results for the second quarter ended October 31, 2019 from its San Martin mine in Queretaro. It milled 54,100 tonnes of 1.78 g/t Au and 34 g/t Ag to produce 2,700 Oz Au and 31.1K Oz Ag (3,100 Oz AuEq), at a cash cost of USD $71 per tonne milled or USD $1,259 per Oz AuEq, and AISC of USD $1,527 per Oz AuEq Starcore had Au & Ag sales of CAD $ 5.8M, a loss of CAD $1.1M, or CAD $0.02 per share, and an EBITDA of (CAD $342) for the six months period ended October 31, 2019.
  • Premier Gold Mines Limited, provided a year-end operations update. The company reported that the successful 2019 drill campaign resulted in the discovery of higher-grade zones located near existing mine workings, and plans are emplaced to benefit from them. Also, it plans to enter in identified near-mine areas in the Lupita extension and Marianas in order to multiple the numbers of headings and stopes, allowing for more flexibility and increased production. At the end of Q3, 2019, year-to-date mine production totaled 47.6K Oz Au and 146.5K Oz Ag, with total co-product cash costs of $973 per Oz Au and co-product AISC of $1,226 per Oz Au.

ON FINANCING

  • Defiance Silver Corp, announced that it has extended the loan for an additional year until December 21, 2020, with a reduction of $500K. The balance on extension is $1.2M at a rate of 10% per year (San Acacio project, Zacatecas).
  • Alamos Gold Inc., announced its intention to make a normal course issuer bid permitting Alamos to purchase for cancellation up to 28.7M class A common shares, representing 10% of the company´s public float of the common shares as of December 11, 2019, being 287.3M common shares issued and outstanding. The price for any repurchased common shares will be the prevailing market price at the time of the purchase. All common shares purchased by Alamos will be cancelled. In addition, the company increased the size of a credit facility from USD $400M to USD $500M on more favourable terms. “The increase in our facility on more attractive terms is a reflection of the increased scale of Alamos as well as our strong operating and financial outlook. Combined with our existing cash, this further strengthens our financial flexibility with no debt and nearly US$700 million of available liquidity,” said Jamie Porter, Chief Financial Officer (Mulatos mine, Sonora).
  • Orla Mining Ltd., finalized a credit agreement for USD $125M for the development of its Camino Rojo project in Zacatecas. The credit comprises three tranches: an initial tranche for USD $25 M once the agreement is closed and two subsequent tranches for USD $50M each available once Orla satisfies certain conditions, including the receipt of key permits required for the development of Camino Rojo. After the closing of the credit facility, the board of directors has approved the start of construction spending at Camino Rojo, allowing the continuation of detailed engineering and the ordering of long lead items, such as the crushing system. Commencement of project construction has also been approved, subject to receipt of all required permits. By the way, SEMARNAT has granted to Orla the approval of the change of land use permit, one of the two key permits required for the development of its project.
  • First Mining Gold Corp., closed a non-brokered flow-through equity financing for $2M. Gross proceeds will be used to fund exploration programs of their mining properties (San Ricardo project, Sonora).
  • SilverCrest Metals Inc., closed a CAD $92M bought deal financing, including CAD $12M over allotment option exercised in full. Gross proceeds will be used to continue the exploration and development of its Las Chispas project in Sonora.
  • Golden Minerals Company, sold two non-strategies Mexican exploration properties to Industrias Peñoles for $3M. The Mogotes and Pistachon properties are located near the Velardeña mine in Durango. None of the claims contain any identified mineral resources. The cash received will be used to advance key exploration projects in Mexico and Nevada.
  • Mexus Gold US, paid off two loan agreement which were coming due. The company does not have the funds to hire additional crew to run all aspects of the mine continuously, so it is seeking the necessary funds by selling a portion of its non-producing properties, selling equipment not needed at the mine site, and/or funding from its shareholder base. It also is considering selling a small royal interest in its Santa Elena mine in Sonora.
  • Mithril Resources Ltd., announced its plan to raise up to A$4.9M by way of an entitlement issue to shareholders. Net proceeds will be used to complete a drilling program at Copalquin project, Durango, and to continue work on the company´s existing projects.

ON RESOURCES AND DEVELOPMENT

  • Argonaut Gold Inc., presented a positive PFS for its Cerro Del Gallo project in Guanajuato. It increased company´s mineral reserves by 48%, and measured and indicated Au mineral resources by 36%. The project has 91,754,000 tonnes of 0.56 g/t Au, 13 g/t Ag, and 0.09% Cu to contain a total of 1.64M Oz Au, 39.1M Oz Ag, and 192.15M Lb Cu. Metallurgical recoveries are 60%, 53%, and 43% respectively. Cerro Del Gallo is a low-cost asset, with estimated cash cost of $597 per Oz Au sold and AISC of $677 per Oz Au sold. The project has an after-tax internal rate of return of $20% and a NPV at a 5% discount rate of $175M, assuming metal prices of $1,350 for Oz Au and $16.75 for Oz Ag. Argonaut plans to produce as an average 64K Oz Au, 1.3M Oz Ag, and 5.4M Lb Cu per year, and has estimated a life of mine of 15.5 years.
  • Coeur Mining Inc., provided an update on its exploration program carried out at its Palmarejo mine in Chihuahua, which has been focused on resource expansion drilling. Highlights from the 2019 drilling campaign at Palmarejo includes positive infill results at the western and southern portions of the Guadalupe mine complex, including hole DC3-ZPA-0010 with 12.8 g/t Au and 1,047 g/t Ag over 5.7m; new resource expansion intercepts from the northern portion of the Independencia mine complex, including hole VIDH-120, with 1.5 g/t Au and 179 g/t Ag over 9.3m; and new resource expansion intercepts from the northeastern most portion of the Independencia mine complex, with hole BVDH-039 with 1.1 g/t Au and 165 g(/t Ag over 5m. “Coeur’s geologic team also expanded its footprint in the district by mapping and sampling exposures of new veins southwest and northeast of the two underground mining complexes as well as new veins west and east of the legacy open pit mine. Coeur expects to seek drill permits for several new areas in 2020 based on positive surface trace-element geochemistry and alteration results”.
  • Azure Minerals Limited, commenced a 7,000m RC resource expansion drilling program at its Loma Bonita deposit in Sonora, where a channel sampling in a road returned 3.6 g/t Au over 35.5m. Alacran project includes Mesa de Plata and Loma Bonita deposits. Initial focus is on growing the Alacran Au & Ag resource of 32.2M Oz Ag and 150K Oz Au. Loma Bonita deposit is open for expansion in most directions with good drill intersections of Au including hole MDPC-131 with 2.8 g/t Au and 33 g/t Ag over 47m; hole MDPC-096 with 1.6 g/t Au and 21 g/t Ag over 67m; and hole MDPC-102 with 1.1 g/t Au and 89 g/t Ag over 44m. In addition, Azure is continuing to undertake reconnaissance and follow-up work throughout the Alacran project where first pass surface sampling of historical dumps returned high grades of Au-Ag and base metals with maximum values of 24.1 g/t Au, 3,675 g/t Ag, 33.5% Pb, 21% Zn, and 2.3% Cu.
  • Industrias Peñoles S.A.B.de C.V., commenced extraction and grinding tests at its Capela mine (former Rey de Plata mine) in Teloloapan, Guerrero. Capela mine is expected to begin operations in 2020 with a daily production of 4,500 tonnes per day. According to the general director of Industrias Peñoles, Fernando Alanís Ortega, the mine located in Teloloapan required an investment of USD $340M.

 ON DEALS AND CORPORATE ISSUES

  • Discovery Metals Corp., announced the appointment of its new VP of Corporate Development and Investor Relations (Cordero project, Chihuahua).
  • Equinox Gold Corp., and Leagold Mining Corporation, entered into a definitive agreement to combine in an at-market merge, creating one of the top Au producing companies operating entirely in the Americas. The combined entity will continue as Equinox Gold. “Pursuant to the Transaction, Leagold shareholders will receive 0.331 of an Equinox Gold share for each Leagold share held (the “Exchange Ratio”). This implies at-market consideration of C$2.70 per Leagold common share, using closing prices for both Equinox Gold and Leagold common shares on the Toronto Stock Exchange on December 13, 2019. At closing, existing Equinox Gold and Leagold shareholders will own approximately 55% and 45% of the merged company, respectively, on an issued share basis”. (Los Filos mine, Guerrero).
  • Goldplay Exploration Ltd., entered into a letter of intent (LOI) agreement with Mako Mining Corp. to acquire 100% of the shares of Marlin Gold Mining Ltd. (San Marcial project, Sinaloa). Marlin owns, amongst other assets, Oro Gold de Mexico, S.A. de C.V. , a Mexican company that owns the La Trinidad mine facilities, currently being decommissioned. Oro Gold also controls 100% of nine concessions totaling 104,094.5 ha located adjacent to Goldplay’s existing portfolio in the historic Rosario gold-silver Mining District, Sinaloa, Mexico. “Under the LOI, upon payment of $50K by Goldplay to Mako the parties have agreed to a binding exclusivity and non-solicitation period from the signing of the LOI until December 31, 2020, or such later date as the parties may agree, which is binding on the parties. Exclusivity will otherwise terminate on the early of the completion of the proposed acquisition or earlier termination of the LOI or the definitive agreement, as the case may be”. The terms of the transaction are subject to negotiation and will include a nominal cash payment to Mako and the issuance of a small NSR royalty to Mako on the concessions currently owned by Oro Gold. Goldplay will assume all remaining tax liabilities of Oro Gold.
  • Oroco Resource Corp., presented results from its special annual general meeting of shareholders (Santo Tomás project, Sinaloa).
  • Prize Mining Corporation, announced the resignation of its former CEO and the appointment of the new CEO (Manto Negro project, Coahuila).
  • Mithril Resources Limited, entered into an exclusive option agreement to acquire all the issued share capital of Sun Minerals Pty Ltd., which holds an exclusive option to earn up to 100% interest in the high grade Copalquin Au & Ag project in Durango. Copalquin contains 32 known historic Au and Ag underground mines including the La Soledad and El Refugio mines. Historic drilling highlights project’s exploration potential with multiple high-grade drill intercepts including hole UC-03 at el Cometa mine with 45.16 g/t Au and 118 g/t Ag over 17.77m; hole UC-024 at El Refugio mine with 6.54 g/t Au and 140 g/t Ag over 7.9m; and hole MP-07-101 with 28.99 g/t Au and 2,350 g/t Ag over 4.53m.

ON SOCIAL RESPONSIBILITY

  • The Zacatecas Mining Cluster (CLUSMING), held its second Talent Meeting with participation greater than the 30 people who previously registered to participate in the event. The goal of the Talent Meeting is to identify personnel with the skills and attitudes necessary for certain companies in the mining industry (mines and suppliers or contractors), and be part of a talent group that can be subsequently hired by companies, according to their profiles.
  • The Ladies Committee of AIMMGM and Outlet Minero, promoted the environmental education in Zacatecas. Attendees gave a brief talk to the groups about culture for sustainable development, highlighting the importance of carrying out actions such as recycling and reusing objects to make new creations at school and at home. Likewise, about the importance of mining and its presence in objects such as pencils, benches, blackboards, among others, that makes everyday life possible. In this context, the Outlet Minero team organized a Christmas tree contest made with recycling and reused material.
  • Grupo Mexico, promoted preventive measures against hydro metereologic phenomena in San Luis Potosi during the conference of preventive culture. Some emergency brigade collaborated in the event with five members, who gave prevention talks with the community of San Luis Potosí and made a demonstration with a fire truck and own safety equipment. SEMARNAT, Civil Protection, and San Luis Potosi Fire Department participated in this conference of preventive measures.
  • Minera Peñasquito, held Christmas celebration in Mazapil, Zacatecas, where the company distributed thousand of toys in 25 communities belonging to the mine´s area of influence. “Minera Peñasquito is not just about removing the ore, about removing the Au. The responsible mining that we want to do cannot work without working with the community. For us being part of the community is a priority, throughout the year, with social investment, entrepreneurship or infrastructure works. It’s fundamental, “said Nelson Núñez, sustainability manager at Newmont-Goldcorp”.
  • Minera Peñasquito, informed to the community leaders about the progress of the social programs that the mining company performs in the 25 communities of direct influence. Among the programs to be reported, the rehabilitation of houses in Nuevo Peñasco was highlighted in infrastructure, which benefited 22 people from that community, as well as maintenance of roads in Santa Rosa, Cuitláhuac, La Mejorada, Charcos, Cedros y Mesas, as well as the maintenance and operation of wells for human consumption in El Vergel and plants and wells in Mesas, Cedros y Charcos. Regarding social responsibility, the company informed about the project “Together We Left a Legacy” that improves the conditions of educational, social infrastructure and promotes sports. This year furniture was delivered to 17 schools to benefit 1,137 students, as well as Ejidos to benefit 310 people. There was talk of Peñasquito Open Doors, a program that offers guided tours so that members of neighboring communities know about the mining operation. 71 sports academies were also held, supporting 70 teams, with 1,224 beneficiaries where 830 uniforms were delivered. Another important item is the educational scholarships, which grant economic incentives to students from primary to university. There are two types of scholarships: by agreement, which in 2019 allowed the delivery of 411 supports, and scholarships of excellence, which is open call and that this year, benefited 192 students. For the entrepreneurs there is the “Ideas con Valor program”, for the creation and strengthening of micro businesses, which supported 120 families with the participation of 300 people. Through the ‘Local Employment Program”, 765 people from the communities surrounding the operation have been hired, who through specific training were able to develop the capabilities required for the mining operation.

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, phyllic alteration in an IOCG project in Jalisco, Mexico. Photo by Miguel A Heredia.