Reserves and Resources

The Mining and Exploration News in Mexico: Highlights on the Third Week of October 2024

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By Jorge Cirett                                             

During the 42nd week of the year (October 14th to October 20th, 2024), companies working in Mexico posted at least 17 press releases. One company informed on exploration advances on its property, six companies posted quarterly results, two companies closed private placements, one company bought back shares advanced on a failed option deal outside Mexico, one company fully paid debt, one company reported a new MRE, three companies announced appointments to the board, one company informed on AGM results and one more completed the acquisition of a mining district. ON MEXICO ISSUES, no relevant matters. ON EXPLORATION, in Sinaloa, Prismo Metals has an ongoing drill program at Palos Verdes. ON MINING, GoGold Resources, Endeavour Silver, First Majestic Silver, Avino Silver & Gold Mines, Sierra Metals and Bear Creek Mining released Q3 production results. ON FINANCING, Osisko Development and Heliostar Metals closed private placements, Starcore International Mines bought back shares issued as payment for an option agreement, Orla Mining paid US$58.5 M to become debt free. ON RESOURCES AND DEVELOPMENT, Prime Mining presented a new mineral resource estimate for its Los Reyes project in Sinaloa. ON DEALS AND CORPORATE ISSUES, Santacruz Mining, Heliostar Metals and Starcore International Mines informed on board appointments. Florida Canyon Gold shareholders were advised to vote in favor of the deal with Integra Resources. Vizsla Silver presented results of its AGM. Vizsla Silver completed the acquisition of La Garra-Metates District in Sinaloa. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • No Relevant News.

ON EXPLORATION

  • Prismo Metals Inc. has an ongoing drill program at Palos Verdes, in Sinaloa. “The first hole is designed to cut both the Palos Verdes vein as well as the high-grade gold-silver vein about 50 meters downdip from the previous intersections. Assays reported from last year’s drilling include hole PV-23-25 with 102 g/t gold, 3,100 g/t silver and 0.26% zinc over 0.5 meters…”

ON MINING

  • GoGold Resources Inc. reported production from its operation at the Parral tailings in Chihuahua, for the quarter ending on September 30, 2024. During the period 167 K Oz Ag, 2,232 Oz Au, 132 tonnes Cu, 100 tonnes Zn (or 406.2 K Oz AgEq) were produced.
  • Endeavour Silver Corp. reported third quarter 2024 production of 874.7 K Oz Ag, 9,290 Oz Au (or 1.6 M Oz AgEq). At Guanaceví, in Durango, 67.1 K tonnes were processed at a rate of 729 tpd, grading 402 gpt Ag, 1.46 gpt Au, recovering 88.7% Ag, 89.8% Au, to produce 768.9 K Oz Ag, 2,828 Oz Au. At Bolañitos, in Guanajuato, 108 K tonnes were processed at a rate of 1,174 tpd, grading 36 gpt Ag, 2.00 gpt Au, recovering 84.7% Ag, 93.1% Au, to produce 105.8 K Oz Ag, 6,462 Oz Au. Production at Guanaceví “decreased in August and September due to a trunnion failure of the primary ball mill ….. Estimated fabrication timing remains at 15 weeks with the mine being back to full operations in December 2024”.
  • First Majestic Silver Corp. announced the production of 5.5 M Oz AgEq during Q3, 2024. At Santa Elena, in Sonora, 259.9 K tonnes were processed at a rate of 2,856 tpd, grading 68 gpt Ag, 3.50 gpt Au, recovering 67% Ag, 94% Au, to produce 376.2 K Oz Ag, 27,435 Oz Au (or 2.68 M Oz AgEq). At San Dimas, in Durango, 195.3 K tonnes were processed, at a rate of 2,146 tpd, grading 188 gpt Ag, 2.12 gpt Au, recovering 89% Ag, 95% Au, to produce 1.05 M Oz Ag, 12,582 Oz Au (or 2.11 M Oz AgEq). At La Encantada, in Coahuila, 223.2 K tonnes were processed at a rate of 2,453 tpd, grading 110 gpt Ag, 0.01 gpt Au, recovering 69% Ag, 90% Au, to produce 545 K Oz Ag, 59 Oz Au (or 550 K Oz AgEq). The rest of the production came from the Jerrit Canyon mine in Nevada. Seven surface rigs and two underground rigs completed 14,796 m at Santa Elena.   Four surface rigs and 10 underground rigs completed 29,172 m of drilling at San Dimas. Two surface rigs completed 1,862 of drilling at La Encantada.
  • Avino Silver & Gold Mines, Ltd. reported production for third quarter 2024. During the period 156.5 K tonnes were processed, grading 63 gpt Ag, 0.46 gpt Au, 0.58% Cu, recovering 89% Ag, 69% Au, 88% Cu, to produce 281.8 K Oz Ag, 1,625 Oz Au, 1.77 M Lb Cu (or 670.9 K Oz AgEq) at the Avino mine in Durango. The operations team is in the final stages of approval to move forward with underground development at La Preciosa, also in Durango.
  • Sierra Metals Inc. reported third quarter 2024 production results, including figures from its Mexican operations. At Bolivar, in Chihuahua, 401.7 K tonnes were processed, grading 0.78% Cu, 201.4 gpt Ag, 0.38 gpt Au, recovering 91.5% Cu, 85.5% Ag, 69.4% Au, to produce 6.31 M Lb Cu, 222 K Oz Ag, 3,361 Oz Au.
  • Bear Creek Mining Corp. released production figures for the third quarter 2024. At the Mercedes mine, in Sonora, 103.9 K tonnes were mined, 102.5 K tonnes processed, grading 3.40 gpt Au, recovering 96% Au to produce 10.751 Oz Au, 76.9 K Oz Ag.

ON FINANCING

  • Osisko Development Corp. closed its previously announced non-brokered private placement for gross proceeds of US$34.5 M, to be invested in a project not in Mexico (San Antonio, Sonora).
  • Starcore International Mines Ltd. bought back 8.67 M common shares previously issued as partial consideration for an option agreement with K Mining SARL regarding several mineral properties in Cóte d’Ivoire. “Starcore negotiated to acquire the Shares from the sole shareholder of K Mining at $0.10 per share, payable in 12 equal tranches over 33 months” (San Martin, Querétaro).
  • Orla Mining Ltd. repaid the entirety of the outstanding balance on its revolving credit facility totaling US$58.4 M. “With this repayment, the Company is now debt free with cash on hand of approximately $120 million”. The US$150 M credit facility will remain in place and available until its expiry in August 2027 (Camino Rojo, Zacatecas).
  • Heliostar Metals Ltd. closed a non-brokered private placement for gross proceeds of C$6 M, with Eric Sprott being subscribed for the entire private placement. Following the placement, Mr. Sprott owns approximately 13% of the outstanding common shares on a non-diluted basis and 15.9% on a partially diluted basis, assuming the exercise of warrants. On a different press release Heliostar announced that almost 4 M warrants of the company have been exercised since September 16th, 2024, adding 1.19 M to the treasury.  (Ana Paula, Guerrero).

ON RESOURCES AND DEVELOPMENT

  • Prime Mining Corp. reported significant open pit expansion and new underground resources in its 2024 mineral resource estimate (MRE) at Los Reyes, in Sinaloa. The Los Reyes resource is on low sulfidation epithermal structures hosted in volcanic rocks, within the Z-T Trend, the Gudalupe Trend, the Central Trend and three Generative areas: Las Primas, Mariposa and Fresnillo. The resource is subdivided in open pit, underground and mill and heap leach operations, with 49.0 M tonnes @ 0.95 gpt Au, 34.2 gpt Ag in indicated resources containing 1.49 M Oz Au, 54 M Oz Ag (or 2.19 M Oz AuEq), and 17.2 M tonnes @ 0.97 gpt Au, 39 gpt Ag in inferred resources, containing 538 K Oz Au, 21.6 M Oz Ag (or 817 K Oz AuEq). “The updated Resource statement reflects a mixed approach that considers open pit versus underground mining on an area-by-area basis”. Highlighted results from 21 unpublished drill holes comprise 2.35 m @ 4.57 gpt Au, 62 gpt Ag; 1.35 m @ 7.87 gpt Au, 105 gpt Ag; 10.45 m @ 0.98 gpt Au, 29 gpt Ag (including 2.75 m @ 2.51 gpt Au, 57 gpt Ag); 5.54 m @ 1.12 gpt Au, 42 gpt Ag; 1.85 m @ 1.71 gpt Au, 121 gpt Ag.

ON DEALS AND CORPORATE ISSUES

  • Santacruz Mining Ltd. informed Mr. Gregg Orr, CFO, has resigned and Mr. Andres Badregal has been appointed as the interim CFO of the company (Zimapan, Hidalgo).
  • Florida Canyon Gold Inc. announced that proxy advisors, Institutional Shareholder Services Inc. and Glass, Lewis & Co. LLC. have both recommended that company shareholders vote in favor of the special resolution authorizing the resolution under the provisions of Section 192 of the Canada Business Corporations Act (CBCA) involving Florida Canyon Gold Inc. pursuant to the resolution between FCGI and Integra Resources Corp. (San Agustin and El Castillo, Durango; La Colorada, Sonora).
  • Heliostar Metals Ltd. announced the appointment of Mr. Hernan Dorado and Vice President Sustainability and Special Projects. (Ana Paula, Guerrero)
  • Vizsla Silver Corp. completed the acquisition of the La Garra – Metates District situated on the center of the Panuco – San Dimas corridor in Sinaloa. Vizsla is to pay US$3.075 M in cash and issue shares for US$7 M over a period of 24 months from the closing date of the acquisition, with partial restrictions on the subsequent sale of shares ranging from 1 to 3 years. A 1% NSR granted to the sellers can be repurchased at any time for US$750 K. The company paid US$1.6 M in back taxes owed on the mining concessions comprising the deal (Panuco, Sinaloa).
  • Starcore International Mines Ltd. announced the election of all directors nominated on its annual general meeting (San Martin, Querétaro).

ON SOCIAL RESPONSIBILITY

  • No Relevant News.

On the image below: Drilling under the scarp in Sonora. Picture by Jorge Cirett.

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

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Silica-Alunita in a hydrothermal breccia

By Miguel A Heredia During the 34th week of the year (August 21st to August 27th, 2023), at least 20 press releases were announced by companies working in Mexico, and 4 news published by the media, with eleven reporting resources and development of their properties, five commenting on Mexican issues, four disclosing deals and corporate issues, one announcing financing issues, one communicating production and financial results, one informing on exploration results, and one discussing social issues. ON MEXICO ISSUES, The United States government requested the installation of the first United States – Mexico – Canada Agreement (USMCA or T-MEC) labor panel against Grupo Mexico. USMCA panel analyzes whether there was a violation in the case of the San Martin Mine, Zacatecas of Grupo Mexico. The president of the Business Coordinating Council (CCE), Francisco Cervantes pronounced on the request for a labor panel of the T-MEC in a mine of Grupo México. Grupo Mexico sees an impact beyond its San Martin Mine. GoGold, Sierra Metals, Vizsla and Guanajuato Silver reported the best drilling intercepts in Mexico on the fourth week of August, 2023. ON EXPLORATION, Prismo provided an update of its ongoing drilling program at its Palos Verdes project in Sinaloa.  ON MINING, Guanajuato Silver reported Q2, 2023 production and financial results from their mine operations in Mexico. ON FINANCING, Golden Minerals received New York Stock Exchange (NYSE) acceptance of plan to regain listing compliance (Rodeo project, Durango).  ON RESOURCES AND DEVELOPMENT, Tocvan and its JV partner Colibri announced results from a bulk sample collected at Pilar project in Sonora.  GoGold released additional drilling results from the Main Area at Los Ricos South project, Jalisco. Golden Tag filed NI43-101 technical report on Mineral Resources for its La Parrilla Mine Complex, Durango. Vizsla reported results from 11 drillholes collared on the Napoleon Vein at its flagship Panuco project in Sinaloa. Golden Minerals completed an updated technical report as a Preliminary Economic Assessment (PEA) for its Velardeña properties in Durango. Guanajuato Silver provided drill results from its Topia Mine in Durango. Sierra Metals announced a mineral resource expansion at its Bolivar Mine in Chihuahua. Silver Tiger reported results from initial scoping-level metallurgical test from its high grade Ag-Au El Tigre project, Sonora. Impact Silver provided a construction update at its Plomosas mine in Chihuahua. Pan American Silver announced mineral resource and mineral reserves as at June 30, 2023 at their Mexican mine operations and advanced mining projects. ON DEALS AND CORPORATE ISSUES, McEwen and Sierra Metals announced the appointment of new members to their Board of Directors. Discovery announced key appointments that strengthen the company’s Board of Directors, and also the permitting and technical teams (Cordero project, Chihuahua). Aloro announced that it has cancelled the option agreement with Cuesta del Cobre S de R.L. de C.V., to purchase the Quitovac Mine project in Sonora.  ON SOCIAL RESPONSIBILITY, Orla Mining released its inaugural sustainability report (Camino Rojo, Zacatecas).

ON MEXICO ISSUES

  • The United States government requested the installation of the first United States – Mexico – Canada Agreement (USMCA or T-MEC) labor panel under the Rapid Response Labor Mechanism (MLRR), for disagreeing with the Mexican government on the complaint against the San Martin Mine, of Grupo México, located in Zacatecas, who is accused of having impeded free unionization and authentic collective contracting. The Mexican government, for its part, responded that it would not review the case under the T-MEC mechanisms, arguing that the conflict dates back to 2007 (since the T-MEC entered into force in 2020) and that there is no evidence of that the mine exports to the United States, so it would not be a facility covered by the treaty. Grupo Mexico denounced that the union leader Napoleón Gómez Urrutia, presented the complaint that gave rise to this process with two objectives: “to have a new pretext to ignore the definitive award that condemns him to pay USD $55M plus accrued yields from 2005 to former mining workers and generate conflicts to press for a new political position that gives him jurisdiction / political privileges (“fuero politico”). After the lifting of the strike, in 2018, San Martin has received investments of more than USD $105M, has produced more than 1.25M tonnes of mineral each year and has generated about 1,300 jobs.
  • USMCA panel analyzes whether there was a violation in the case of the San Martin Mine, Zacatecas of Grupo Mexico. Given these facts, Grupo México indicated that it is essential for the San Martin Mine to put an end to a conflict that has harmed workers and their families for the last 15 years. Grupo México assured that the conflict in the San Martin Mine is not the product of the disagreement of the workers, but of the senator for Morena Napoleón Gómez Urrutia, who presented the complaint that gave rise to this process. “Urrutia sought to have a new pretext to ignore the final award that condemns him to pay USD $55M plus accrued income since 2005 to former mining workers, as well as generate conflicts to press for a new political position.
  • The president of the Business Coordinating Council (CCE), Francisco Cervantes pronounced on the request for a labor panel of the T-MEC in a mine of Grupo México. At the request of the United States government for the first panel of the Rapid Response Labor Mechanism under the Treaty between Mexico, the United States, and Canada at the San Martin mine of Grupo México, in Sombrerete, Zacatecas, Francisco Cervantes Díaz, president of the CCE, commented that it is a panel that has already lost a labor part here, that is why they are entering the issue in the United States and the resolution must be waited for. The Ministry of Economy indicated that Mexico rejected the request because this conflict dates from July 2007, and the law is not retroactive, since the “T-MEC would not be applicable to the facts related to this controversy.”
  • Grupo Mexico sees an impact beyond its San Martin Mine. The Mexican government will have the burden of proof to demonstrate in the T-MEC instance that there were no violations of union freedom in the San Martin Mine. If the case is lost, the sanctions could affect other company exports, beyond those originating from the facility in conflict, envisions the Grupo Mexico´s lawyer. It is worth remembering that the United States filed a labor complaint with the Mexican government accusing that, in the San Martin Mine, belonging to Grupo México, the rights of workers were violated because a strike was terminated by establishing a collective contract with another union, which would mean a violation of workers’ rights. Mexico maintained that this fact was prior to the entry into force of the trade agreement with the United States and Canada, and refused to carry out the investigation to determine a possible Remediation Plan for the company.
  • GoGold Resources Inc., Sierra Metals Inc., Vizsla Silver Corporation, and Guanajuato Silver Company Ltd., reported the best drilling intercepts in Mexico on the fourth week of August, 2023. Details are shown in the table below:

ON EXPLORATION

  • Prismo Metals Inc., provided an update of its ongoing drilling program at its Palos Verdes project in Sinaloa. The company has drilled 2,620m in the current program and completed thirteen holes with one hole in progress, PV-23-32. One additional hole is contemplated after completing hole PV-23-32 as part of the original drill program which began in May 2023. “This will be followed by the previously announced expansion of the drill program, with holes to be drilled from Vizsla Silver Corp. concessions adjacent to the Palos Verdes concession. These holes will target the Palos Verdes vein at depth. This follows a recommendation presented by the Panuco Joint Technical Committee to drill approximately 3,600 meters in ten holes to be completed in two phases”.

ON MINING

  • Guanajuato Silver Company Ltd., reported Q2, 2023 production and financial results from their mine operations in Mexico (El Cubo, San Ignacio, and Valenciana in Guanajuato, and Topia in Durango) All amounts are expressed in US dollars. The company mined 166,671 tonnes and milled 163,793 tonnes with metallurgical recoveries of 84.9% Ag and 83.1% Au, to produce 477.6K Oz Ag, 4,719 Oz Au, 875.8K Lb Pb, and 897.2K Lb Zn (941.3K Oz AgEq). It sold 462.9K Oz Ag, 4,427 Oz Au, 830.6K Lb Pb, and 871.3K Lb Zn (901.5K Oz AgEq) at realized prices of $24.33/ Oz Ag, $1,988.05/Oz Au, $0.97/Lb Pb, and $1.14/Lb Zn. Guanajuato Silver reported revenue of $16.8M; cost of sales of $19.2M; mine operating loss of ($2.4M); mine operating cash flow before taxes of $394.3K; net loss of ($8.6M); EBIDTA of ($4.6M); adjusted EBIDTA of ($3.41M); and working capital of ($17.8M).

ON FINANCING

  • Golden Minerals Company received New York Stock Exchange (NYSE) acceptance of plan to regain listing compliance. The listing of the Company’s common stock will continue pursuant to an extension during the plan period, during which time the Company will be subject to periodic review to determine whether it is making progress consistent with the accepted plan (Rodeo project, Durango). 

ON RESOURCES AND DEVELOPMENT

  • Tocvan Ventures Corp., and its JV partner Colibri Resource Corporation, announced results from a bulk sample collected at Pilar project in Sonora. Highlights of the recovery results for heap leaching match regional operating mine – head grade exceeds expectations include 62% recovery of gold achieved over 46-day leaching period; report confirms with increase in irrigation flowrate, higher recovery can be achieved; head grade calculated at 1.9 g/t Au and 7 g/t Ag, extracted grade calculated at 1.2 g/t Au and 3 g/t Ag; bulk sample only included coarse fraction of material (+3/4”to +1.8”); and fine fraction (-1/8”) indicated rapid recovery with agitated leach. Highlights of recap of fine fractions and gravity recovery results include 80%recovery of gold and 94% recovery of silver after rapid 24-hour retention time in agitated bottle roll test; and 95 to 99% recovery of gold and 73 to 97% recovery for silver in gravity recovery with agitated leach results of five composite samples. It includes the recovery of 99% Au and 73% Ag from drill core composite at 120m depth.
  • GoGold Resources Inc., released additional drilling results from the Main Area at Los Ricos South project, Jalisco. Drilling highlights include hole LRGG-23-316 with 1.27 g/t Au and 396 g/t Ag (6.54 g/t AuEq or 491 g(/t AgEq) over 27.3m, including 4.43 g/t Au and 1,338 g/t Ag (22.26 g/t AuEq or 1.665 g/t AgEq) over 7.6m, including 11.80 g/t Au and 7,230 g/t Ag (108.20 g/t AuEq or 8,115 g/t AgEq) over 0.9m; hole LRGG-23-304 with 1.82 g/t Au and 181 g/t Ag (4.24 g/t AuEq or 318 g/t AgEq) over 10m, including 4.34 g/t Au and 633 g/t Ag (12.78 g/t AuEq or 958 g/t AgEq) over 1.8m; hole LRGG-23-306 with 4.99 g/t Au and 605 g/t Ag (13.05 g/t AuEq or 979 g/t AgEq) over 11.7m, including 30.5 g/t Au and 3,550 g/t Ag (77.83 g/t AuEq or 5,837 g/t AgEq) over 1.5m; hole LRGG-23-309 with 1.5 g/t Au and 89 g/t Ag (2.69 g/t AuEq or 202 g/t AgEq) over 18.6m, including 12.05 g/t Au and 144 g/t Ag (13.97 g/t AuEq or 1.048 g/t AgEq) over 0.6m; and hole LRGG-23-313 with 3.23 g/t Au and 235 g/t Ag (6.36 g/t AuEq or 477 g/t AgEq) over 9.2m, including 4.64 g/t Au and 461 g/t Ag (10.79 g/t AuEq or 809 g/t AgEq) over 3.2m. The Main Area drilling campaign’s purposes is to better define the very high-grade portions of the current deposit that may be amenable to bulk underground mining.
  • Golden Tag Resources Ltd., filed NI43-101 technical report on Mineral Resources for its La Parrilla Mine Complex, Durango, with an effective date of May 31, 2023.
  • Vizsla Silver Corp., reported results from 11 drillholes collared on the Napoleon Vein at its flagship Panuco project in Sinaloa. Drilling highlights (true widths) include hole NP-23-380 with 111 g/t Ag, 0.64 g/t Au, 0.01% Pb, and 0.01% Zn (147 g/t AgEq) over 5.4m, plus 561 g/t Ag, 1.08 g/t Au, 1.3% Pb, and 6.2% Zn (849 g/t AgEq) over 1.35m, plus 346 g/t Ag, 2.21 g/t Au, 0.8% Pb, and 4.3% Zn (650 g/t AgEq) over 0.4m; hole NP-23-301 with 64 g/t Ag, 0.72 g/t Au, 0.8% Pb, and 0.8% Zn (160 g/t AgEq) over 1m, plus 908 g/t Ag, 7.37 g/t Au, 1.6% Pb, and 4.9% Zn (1,568 g/t AgEq) over 1.9m, including 1,500 g/t Ag, 8.96 g/t Au, 2% Pb, and 4% Zn (2,205 g/t AgEq) over 0.65m; hole NP-23-392 with 527 g/t Ag, 3.78 g/t Au, 2.1% Pb, and 5% Zn (989 g/t AgEq) over 2.5m, including 1,500 g/t Ag, 9.97 g/t Au, 5.2% Pb, and 6.7% Zn (2,465 g/t AgEq) over 0.69m, plus 258 g/t Ag, 1.62 g/t Au, 1.9% Pb, and 15.5% Zn (967 g/t AgEq) over 0.95m, plus 40 g/t Ag, 1.96 g/t Au, 0.6% Pb, and 11.4% Zn (602 g/t AgEq) over 1.55m. “The new drill results are centered on the western portion of the district and are part of Vizsla’s ongoing 90,000m resource infill and expansion/discovery-focused drill program. Infill and step-out (expansionary) drilling completed to date has led to an improved understanding of the mineralization controls along the Napoleon vein corridor”.
  • Golden Minerals Company completed an updated technical report as a Preliminary Economic Assessment (PEA) for its Velardeña properties in Durango. Mineral Resource Estimate (sulphides) as at June 1, 2023 considers measured + indicated resources of 665,900 tons with grades of 402 g/t Ag, 5.54 g/t Au, 1.7% Pb, and 2.1% Zn for a total of 8.6M Oz Ag, 118.5K Oz Au, 24.77M Lb Pb, and 30.48M Lb Zn contained, and inferred resources of 1,059,900 tonnes of 413 g/t Ag, 5.1 g/t Au, 1.8% Pb, and 2.3% Zn for a total of 14.06M Oz Ag, 173.7K Oz Au, 42.3M Lb Pb, and 52.7M Lb Zn contained. Highlights of the economic analysis include a mine life of 10.5 years; Pre-Tax NPV (8%) of USD $136.7M and IRR of 1,320.2%; After-Tax NPV (8%) of USD $87.6M and IRR of 860.7%; and a payback of less than one year.
  • Guanajuato Silver Company Ltd., provided drill results from its Topia Mine in Durango. Drilling highlights reported in true widths include hole UT23-468 (Argentina Vein) with 0.15 g/t Au, 202 g/t Ag, 2.3% Pb, and 0.8% Zn (317 g/t AgEq) over 0.36m; hole UT23-470  (Argentina Vein) with 0.09 g/t Au, 132 g/t Ag, 0.2% Pb, and 1.1% Zn (182 g/t AgEq) over 0.35m; hole UT23-471 (Argentina Vein) with 0.1 g/t Au, 547 g/t Ag, 1.1% Pb, and 1.8% Zn (644 g/t AgEq) over 0.80m; hole UT23-474 (Santa Cruz Vein) with 0.06 g/t Au, 490 g/t Ag, 0.7% Pb, and 0.2% Zn (521 g/t AgEq) over 0.18m; and hole UT23-476 (san Gregorio Vein) with 0.16 g/t Au, 1,180 g/t Ag, 5.1% Pb, and 23.9% Zn (2,150 g/t AgEq) over 0.15m, plus 0.19 g/t Au, 161 g/t Ag, 0.3% Pb, and 10.6% Zn (551 g/t AgEq) over 1.91m, plus 0.33 g/t Au, 124 g/t Ag, 0.4% Pb, and 7.2% Zn (409 g/t AgEq) over 0.25m. “Drilling of the Argentina and Santa Cruz veins is being done from the new El Condor Tunnel with the objective of defining the trend of mineralization to the west of the current intercepts. The Rosario and San Gregorio veins, located in the southeastern part of the district, have been drilled from the Rosario ramp; these veins are separated by approximately 350 metres, and the objective there is to follow the trend of mineralization to the west”.
  • Sierra Metals Inc., announced a mineral resource expansion at its Bolivar Mine in Chihuahua. The company reported additional 15.5M Lb CuEq in measured and indicated mineral resources hosted by the Dulce structure at its Bolivar mine in Chihuahua, Mexico. Mineral Resource at Dulce Zone as at June 30, 2023 include measured + indicated resources of 1,236,000 tonnes with grades of 0.83% Cu, 0.47 g/t Au, and 26 g/t Ag (1.24% CuEq) for a total of 22.7M Lb Cu, 18.7K Oz Au, and 1.03M Oz Ag (33.8M Lb CuEq) contained, and inferred resources of 431K tonnes with grades of 0.67% Cu, 0.57 g/t Au, and 25 g/t Ag (1.12% CuEq) for a total of 6.4M Lb Cu, 7.9K Oz Au, and 345K Oz Ag (10.6M Lb CuEq) contained.
  • Silver Tiger Metals Inc., reported results from initial scoping-level metallurgical test from its high grade Ag-Au El Tigre project, Sonora. Preliminary metallurgical work demonstrates excellent recoveries of silver, gold, copper, zinc and lead in the Sulphide and Black Shale Zones with silver equivalent recoveries of 95.7% and 98.1%, respectively. Preliminary rougher flotation tests of the Black Shale Zone recovered 91.1% copper, 98.2% lead, 98.8% zinc, 91.9% gold, and 98.4% silver (Overall Silver Equivalent Recovery – 98.1%);  preliminary rougher flotation tests of the Sulphide Zone recovered 94.2% copper, 95.3% lead, 97.6% zinc, 79.6% gold, and 96.0% silver (Overall Silver Equivalent Recovery – 95.7%);  surface Stockwork Zone column test extractions recovered – 83.1% Gold, 64.3% Silver at 3/8-in crush size with no requirement for agglomeration indicated in these tests (Overall Silver Equivalent Recovery – 78.1%; and also notable is the low cyanide consumption of 0.68 kg per tonne and lime consumption of 2.33 kg per tonne. “Previous drilling of the Surface Stockwork Zone has indicated a mineralized zone in excess of 100 meters true width. With high recoveries of 78.1% silver equivalency in column testing, simulating a heap leaching process, the Corporation sees the potential for an open pit low-cost heap leach process. This open pit heap leach process will be defined as part of the upcoming PEA”.
  • Impact Silver Corp., provided a construction update at its Plomosas mine in Chihuahua. “All necessary components of the mill have arrived on site or have been refurbished with assembly currently in the final stages. Testing and modification of the plant is expected to start in late summer, with ramp up to design capacity of nearly 200 tpd expected over the coming months. Construction is now approximately 85% complete. The Company has applied for the expansion of the current tailings pond which is expected to add at least an additional two years capacity. Meanwhile, an additional tailings pond is in the planning stages to accommodate years of future production and growth. Refurbishments to ventilation, electrical and lighting systems are ongoing as activity increases underground. Mining has begun and is expected to ramp up as the Company deploys additional equipment to the mine including scoop trams and underground trucks. Underground drilling to better define and expand resources has begun and drill permits for surface brownfield and green field exploration targets have been received. The exploration team has initiated its first phase of the 2023-2024 mine plan. This includes extraction of high-grade material in line with previous grades in excess of 13% Zn. There are currently 70 Company employees on site and another 25 contract workers. The Company is fortunate to have inherited a strong workforce after the acquisition closed and is adding positions in specific areas centred around engineering, exploration and day-to-day operations”.
  • Pan American Silver Corp., announced mineral resource and mineral reserves as at June 30, 2023 at their Mexican mine operations and advanced mining projects (Mineral resources are reported exclusive of mineral reserves). At La Colorada, Zacatecas, the company reported measured resources of 0.7M with grades of 153 g/t Ag and 0.13 g/t Au for a total  of 3.6M Oz Ag and 3K Oz Au contained; indicated resources of 2.5M tonnes with grades of 182 g/t Ag and 0.19 g/t Au for a total of 14.6M Oz Ag and 15K Oz Au contained; and inferred resources of 14.7M tonnes with grades of 174 g/t Ag and 0.2 g/t Au for a total of 82.2M Oz Ag and 43K Oz Au contained. At La Colorada Skarn, Zacatecas, it reported indicated resources of 95.9M tonnes with a grade of 31 g/t Ag for a total of 94.4M Oz Ag contained and inferred resources of 147.8M tonnes with a grade of 28 g/t Ag for a total of 132.9M Oz Ag contained. At Dolores, Chihuahua, Pan American reported measured resources of 5.5M with grades of 23 g/t Ag and 0.33 g/t Au for a total of 4M Oz Ag and 57.7K Oz Au contained; indicated resources of 0.7M tonnes with grades of 70 g/t Ag and 1.35 g/t Au for a total of 1.5M Oz Ag and 28.7K Oz Au contained; and inferred resources of 1.3M tonnes with grades of 40 g/t Ag and 1.18 g/t Au for a total of 1.7M Oz Ag and 50.3K Oz Au contained. At La Bolsa, Sonora, the company reported measured resources of 10.8M tonnes with grades of 10 g/t Ag and 0.7 g/t Au for a total of 3.5M Oz Ag and 242.8K Oz Au contained; indicated resources of 10.6M tonnes with grades of 8 g/t Ag and 0.54 g/t Au for a total of 2.7M Oz Ag and 184.3K Oz Au contained; and inferred resources of 13.7M tonnes with grades of 8 g/t Ag and 0.51 g/t Au for a total of 3.3M Oz Ag and 224.6K Oz Au contained. The company also reported mineral reserves as at June 30, 2023. At La Colorada, Zacatecas, it reported proven reserves of 5M tonnes with grades of 296 g/t Ag and 0.21 g/t Au for a total of 47.2M Oz Ag and 33.8K Oz Au contained; and probable reserves of 4.2M tonnes with grades of 292 g/t Ag and 0.19 g/t Au for a total of 39.1M Oz Ag and 25.3K Oz Au contained. At Dolores, Chihuahua, Pan American reported proven reserves of 6.3M tonnes with grades of 17 g/t Ag and 0.53 g/t Au for a total of 3.4M Oz Ag and 108.6K Oz Au contained, and probable reserves of 1.3M tonnes with grades of 24 g/t Ag and 0.53 g/t Au for a total of 1M Oz Ag and 22.1K Oz Au contained.

ON DEALS AND CORPORATE ISSUES

  • McEwen Mining Inc., announced the appointment of a new member to its Board of Directors (El Gallo mine complex, Sinaloa).
  • Sierra Metals Inc., announced the appointment of a new member to its Board of Directors as an independent non-executive Director (Bolivar Mine, Chihuahua).
  • Discovery Silver Corp., announced key appointments that strengthen the company’s Board of Directors, and also the permitting and technical teams. These include: an Independent Director, 2 Advisors to the Board, a Director, Corporate Affairs, Mexico, a Vice President Mineral Processing, and a Corporate Secretary & Manager Administrative Services (Cordero project, Chihuahua).
  • Aloro Mining Corp., announced that it has cancelled the option agreement with Cuesta del Cobre S de R.L. de C.V., to purchase the Quitovac Mine project in Sonora. After conducting further due diligence and considering the newly proposed changes to the Mining Law by the current Government of Mexico and the difficulties in obtaining a surface use agreement from the Quitovac Comunidad, Aloro feels that it is not in the Company’s best interest to proceed.

ON SOCIAL RESPONSIBILITY

  • Orla Mining Ltd., released its inaugural sustainability report. Highlights include that 25% Orla´s corporate goals were environmental, social, and governance (ESG)-linked, all of which were achieved; 100% of Orla executives and managerial-level employees were evaluated against ESG performance; achieved a respectable health and safety record, with a lost time injury frequency rate of 1.49 across their sites; generated USD $5.8M in community economic contributions at Camino Rojo, Zacatecas, including salaries, local procurement, land leases and investments in local  infrastructure; achieved an emissions level of 0.19 tonnes of CO2 equivalent per ounce of gold equivalent produced at Camino Rojo, establishing the operation as a global leader on this metric; achieved 0.15 m3/t of processed ore water intensity, with zero water discharge (100% of water reused and recycled), at Camino Rojo; developed the “Towards 2030 Sustainability Strategy” and set ESG targets to build a more sustainable, resilient and inclusive business, anchored around the goal of accelerating value creation and net-positive benefits for stakeholders.

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, silica + alunite in a hydrothermal breccia from an epithermal system in a project in Chihuahua, Mexico.  Photo by Miguel A Heredia.

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

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By Jorge Cirett                                             

During the 19th week of the year (May 8th to May 14th, 2023), 19 companies working in Mexico posted news releases. Three companies informed on exploration on their properties, eight companies informed on Q1 2023 or full-year 2023 production/financial results, one company informed on the termination of an illegal blockade. One company announced the opening of a financing round. Assay results were released on an advanced property in Sinaloa, and a mill started  test work in Nayarit. ON MEXICO ISSUES, Fitch Ratings warned on the impact of the new mining law, specially in exploration activities. ON EXPLORATION, in Sinaloa, Vizsla Silver reported drilling results from Panuco; Prismo Metals started drilling at Palos Verdes. In Jalisco, Stroud Resources provided a summary of the 2021-2022 drilling at Santo Domingo Hostotipaquillo. ON MINING, Endeavour Silver, GoGold Resources, Mag Silver, Avino Silver, Torex Gold, Pan American Silver, Golden Minerals, SilverCrest Metals released Q1 2023 production reports. Fortuna Silver informed on the termination of the illegal blockade at its San José mine in Oaxaca. ON FINANCING, Stroud Resources is to raise up to C$1.5 M. ON RESOURCES AND DEVELOPMENT, Oroco Resource released assay results from its Santo Tomás project in Sinaloa. Xali Gold informed its optioned processing plant in Nayarit has begun test work. ON DEALS AND CORPORATE ISSUES, GR Silver updated on work at its Plomosas project in Sinaloa. Silver Valley informed on negotiations with the Mexican Lithium Agency pertaining a possible partnership involving the lithium component of its properties in Mexico. ON SOCIAL RESPONSIBILITY, Zacatecas Silver continues to build its relationship with the Tetlama community in Morelos.

ON MEXICO ISSUES

  • Fitch Ratings stressed that the new mining law is to have far-reach implications in the Mexican mining industry, as it is to slow the pace of exploration, shorten the concessions term and generate worries on the operational continuity, and also to revitalize community negotiations. Even as the details are still to be defined, exploration is the activity that will be hit the hardest, with exploration activities now to be conducted by the Servicio Geológico Mexicano (SGM) and later expanded by special collaboration agreements.

ON EXPLORATION

  • Stroud Resources Ltd. provided a summary of the 2021-2022 drilling program at its Santo Domingo property in Hostotipaquillo, Jalisco. The program consisted of 9,936 m in 32 holes to explore the extent of known vein-hosted epithermal mineralization and to define additional parallel systems. Highlighted core length intervals comprise 1.55 m @ 624 gpt Ag; 47.70 m @ 0.18 gpt Au, 42 gpt Ag, 0.1% Pb, 0.4% Zn; 48.90 m @ 0.42 gpt Au, 41 gpt Ag; 68.35 m @ 0.18 gpt Au 66 gpt Ag; 34.70 m @ 1.23 gpt Au, 60 gpt Ag; 32.15 m @ 0.55 gpt Au, 106 gpt Ag; 36.80 m @ 0.23 gpt Au, 141 gpt Ag, 0.2% Pb, 2.0% Zn; 24.00 m @ 0.13 gpt Au, 105 gpt Ag; 14.70 m @ 0.78 gpt Au, 165 gpt Ag; 34.70 m @ 1.23 gpt Au, 60 gpt Ag, 0.6% Pb, 1.8% Zn; 35.45 m @ 0.17 gpt Au, 47 gpt Ag. “To date, the Santo Domingo Project has approximately 85 drill holes totalling 18,184 metres”.
  • Vizsla Silver Corp. reported results from 16 expansion holes at its Panuco project in Sinaloa. These expansion holes targeted the Copala resource area, with highlighted true width intervals comprising 5.89 m @ 1,403 gpt Ag, 4.24 gpt Au (or 1,591 gpt AgEq); 4.90 m @ 345 gpt Ag, 1.12 gpt Au (or 396 gpt AgEq); 2.14 m @ 1,319 gpt Ag, 22.46 gpt Au (or 2,743 gpt AgEq); 1.45 m @ 789 gpt Ag, 5.13 gpt Au (or 1,080 gpt AgEq). “Ongoing drilling at Copala has now traced mineralization along ~1,250 metres of strike length and ~400 metres down dip…… Vizsla has to date completed 35,000 m of its planned 90,000 m 2023 drill program”.
  • Prismo Metals Inc. has started the drilling program at its Palos Verde project in Sinaloa. The at least 2.500 m drilling is to test the 65% of the Palos Verdes structure that has not been drilled, along with some other veins that have been mapped. The company is trying to intercept large ore shoots as in the adjacent Panuco project (See above).

ON MINING

  • Endeavour Silver Corp. announced its financial and operating results for Q1 2023. During the period 1.62 M Oz Ag, 9,342 Oz Au (or 2.4 M Oz AgEq) were produced at $11.12 per Oz Ag and an AISC of $20.16 per Oz Ag, net of gold credits. Cash position was $61.6 M at the end of the period, and working capital $92.8 M. The company is going ahead with the development of the Terronera project in Jalisco, with over $58 M invested to date
  • GoGold Resources Inc. announced the financial results for Q1 2023. The company produced 173.7 K Oz Ag, 2,016 Oz Au, 143 tonnes Cu, at adjusted cash cost of $14.00 per Oz AgEq and adjusted AISC of $19.76 per Oz AgEq. Revenue was $7.6 M on the sale of 355.7 K Oz AgEq. Cash on hand is US$100.9 M (Parral tailings, Chihuahua).
  • Mag Silver Corp.  released unaudited financial results for Q1 2023. Concentrate production has commenced at the Juanicipio mine in Zacatecas (Fresnillo 56%, MAG 44%), containing 2 M Oz Ag, 5,291 Oz Au, 1,281 tonnes Pb, 1,656 tonnes Zn. MAG reported net income of $4.7 M, and closed a $42.6 M offering of shares and a $17.1 M private placement during the period.
  • Fortuna Silver Mines Inc. reported that the illegal blockade at its San Jose Main in Oaxaca has been lifted. The company and union workers have reached an agreement to resume operations at the mine and processing plant which recommenced on May 10, 2023.
  • Avino Silver & Gold Mines Ltd. released its consolidated financial results for the first quarter of 2023. During the period, the company milled 159.8 K tonnes at Avino, in Durango, to produce 234.3 K Oz Ag, 2,286 Oz Au, 1.4 M Lb Cu (678.2 K Oz AgEq), at cash cost of $14.22 per Oz AgEq and an AISC of $20.17 per Oz AgEq. Revenues of $9.8 M were impacted by timing of concentrate shipments, EBITDA was $0.3 M, cash provided by operating activities of $0.4 M. The dry-stack tailings facility is now complete and fully operational. The company is assessing the continuity of mineralization to depth, with mineralization extending at least 800 m downdip … “it appears that the Avino vein is getting richer in copper as we go deeper with a grade of 1.63% copper over 16.66 metres” intercepted at depth.
  • Torex Gold Resources Inc. reported financial and operational results for Q1 2023. During the period the company produced 122,918 Oz Au at its El Limón-Guajes property in Guerrero, milling 13,073 tpd and mining form ELG underground. Cash cost was $709 per Oz Au and AISC of $1,079 per Oz Au. Reported income of $68.2 M and adjusted earnings of $50.3 M. The company has reserves of 38.6 M tonnes @ 2.91 gpt Au, 17.1 gpt Ag, 0.58% Cu at the Morelos Complex in Guerrero, 47.8 M tonnes @ 3.33 gpt Au, 22.6 gpt Ag, 0.80% Cu in measured and indicated resources and 15.8 M tonnes @ 2.49 gpt Au, 23 gpt Ag, 0.86% Cu in inferred resources. The quarter closed with net cash of $318.4 M.
  • Pan American Silver Corp. reported unaudited results for the Q1 2023, without figures or specific news on its Mexican properties.
  • Golden Minerals Co. released financial results for Q1 2023. Revenue was $4.2 M, net operating margin $0.2 M related to the Rodeo mine operations in Durango, where 2,081 Oz Au, 11,535 Oz Ag were produced. Golden is assessing the possibility of restarting the Velardeña property mining operations in Durango. During the period a maiden resource of 937 K tonnes @ 570 gpt Ag was announced on its Yoquivo property, in Chihuahua, and the return of the Santa Maria property, also in Chihuahua, by Fabled Silver. The company had $2.0 M in cash and cash equivalents by the end of the period.
  • SilverCrest Metals Inc. announced its financial and operational results for the first quarter 2023. Undeground mining rates at Las Chispas, in Sonora, averaged 707 tonnes per day (tpd), processing 1,160 tpd with an estimated 40% of production feed sources from stockpiles. Grades averaged 4.06 gpt Au, 419 gpt Ag, recovering 97.5% Au, 91.0% Ag, to produce 13,300 Oz Au, 1.29 M Oz Ag (2.45 M Oz AgEq), at cash cost $6.57 per Oz AgEq and AISC of $11.45 per Oz AgEq. The company had revenue of $58.0 M, resulting in mine operating income of $35.6 M with net free cash flow of $19.3 M, ending the quarter with cash of $45.8 M and net cash of $21.0 M.

ON FINANCING

  • Stroud Resources Ltd. announced a non-brokered private placement to raise up to C$1.5 M (Santo Domingo Hostotipaquillo, Jalisco).

ON RESOURCES AND DEVELOPMENT

  • Oroco Resources Corp. released assay results for the last two drill holes of the 2021-2023 program, which test the North Zone of its Santo Tomás project in Sinaloa. Highlighted core length results comprise 185.4 m @ 0.27% Cu, 0.013 gpt Au, 1.1 gpt Ag; 228.5 m @ 0.43% Cu, 0.035 gpt Au, 2.52 gpt Ag in one hole and 387.4 m @ 0.45% Cu, 0.043 gpt Au, 3.0 gpt Ag; 39.0 m @ 0.26%, 0.012 gpt Au, 1.68 gpt Ag in the other. “The North Zone program comprises 47 diamond drill holes and 30,909 m of drilling”.
  • Xali Gold Corp. advised that Minera Cinco Reales S.A. de C.V. has commenced work on the San Dieguito de Arriba plant in Nayarit. The company is planning to carry their first bulk sample test by the end of May. The company will be allowed to conduct the bulk test work while the environmental impact permit is authorized. “Xali Gold will have the right to receive 15% of the net profits from any mineral that is processed at the SDA Plant”.

ON DEALS AND CORPORATE ISSUES             

  • GR Silver Mining Ltd. updated on work and plans for 2023 at its 43,187 ha. Plomosas project in Sinaloa. The property hosts intermediate to low sulfidation epithermal mineralization on the Plomosas, San Marcial and San Juan-La Colorada areas, on which a new resource estimate was filed early this month, based in 60,020 m of drilling in 424 holes. Indicated resources stand at 15 M tonnes @ 117 gpt Ag containing 55 M Oz Ag, or 179 gpt AgEq, containing 85 M Oz AgEq. Inferred resources stand at 9 M tonnes @ 78 gpt Ag, containing 22 M Oz Ag, or 171 gpt AgEq, holding 49 M Oz AgEq. A drill rig has been mobilized to the SE Area in San Marcial and a 12,500 m drilling exploration program has been recommended. On the cost reduction initiative, staff has been reduced by 38% and vehicles by 50%, “with executives taking reduced cash salaries and directors waiving cash fees.”
  • Silver Valley Metals Corp. provided an update on its MexicCan Lithium-Potassium project in Zacatecas-San Luis Potosí. The company “has been in discussions with LitioMX, (the national lithium company of Mexico)” pertaining the possibility of forming a partnership for exploration and production on Silver Valley’s concessions. “The negotiation is focused solely on the lithium component of the multi-commodity deposit(s). This represents an inferred resource of 243,000 tonnes of lithium carbonate equivalent (LCE) defined to date at surface to an average depth of only 5 metres”.

ON SOCIAL RESPONSIBILITY

  • Zacatecas Silver Corp. continues to build on its relationship with the Tetlama community, on its Esperanza project in Morelos. “The Company continues to provide on-going social benefit support with programs currently implemented including: medical assistance, funerary compensation, educational scholarships, and the community forest fire fighting brigade”. The company is combining resources with the community nucleus for the construction of the first stage of a new community cemetery.

On the image below: Silicified breccia-vein ridge in a copper project in the Sonoran Desert. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico; Highlights on the First Week of August, 2022

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By Jorge Cirett

During the 31st week of the year (August 1st to August 7th, 2022), at least 21 press releases were announced by companies working in Mexico. To note, six companies posted exploration advances on their properties and four presented production results for the second quarter. Only one company reported on the closing of a private placement, one on the granting of incentive options to officers, directors and consultants, one on a $5 M loan facility and one in a share consolidation plan. One company filed an amended report. One company closed the sale of its Mexican properties and one more amended the option agreement of a property.  ON MEXICO ISSUES, no relevant news. ON EXPLORATION, in Sonora, Silver Spruce completed an RC drilling program at Diamante; Tocvan Ventures informed on drilling at Pilar. In Chihuahua, Kootenay Silver informed on drilling at Columba; Mammoth Resources presented drilling results from Tenoriba. In Zacatecas, Alien Metals updated on work at Donovan 2 and San Celso. In Oaxaca, Vortex Metals updated on exploration at Riqueza Marina and Zaachila projects. ON MINING, Coeur Mining, Torex Gold, Equinox Gold and First Majestic Silver presented financial and operational results for the second quarter 2022. ON FINANCING, Heliostat closed a private placement for $3 M. Bear Creek Mining entered into a US$5 M loan facility. Tocvan is granting incentive stock options and Ridgestone Mining is proposing consolidation of its shares.  ON RESOURCES AND DEVELOPMENT, Discovery Silver is filing an amended technical report for the Cordero project in Chihuahua. ON DEALS AND CORPORATE ISSUES, Great Panther Mining closed the sale of its Mexican properties to Guanajuato Silver Company. ON SOCIAL RESPONSIBILITY, Grupo Mexico’s metallurgical complex at Nacozari, in Sonora, was granted the “Great Place to Work” certification.

ON MEXICO ISSUES

  • No Relevant News.

ON EXPLORATION

  • Silver Spruce Resources Inc. along with Colibri Resource Corp. completed its phase 1 drilling program at the 1,057 ha Diamante project in Sonora. The 2,005 m reverse-circulation program in 19 holes, up to 135 m in depth, covered the La Prieta, and Pillado targets. “Mineralization is reported visually as pyrite, arsenopyrite, chalcopyrite, sphalerite, argentiferous galena, argentite, hematite and probable metal oxides, carbonates and sulphates, including copper carbonate (malachite), copper sulphates and plumbojarosite”.
  • Vortex Metals Inc. provided an update in exploration of its Riqueza Marina and Zaachila projects in Oaxaca. The late David Jones identified this area in the early 2000’s …”Copper-gold mineralization within both the Riqueza Marina and Zaachila projects is associated with geologic processes operative in the Late Jurassic to Middle Cretaceous within a back-arc sequence of bi-modal volcanics and volcaniclastics deposited on the sea floor. Early exploration conducted by Dave Jones identified several copper and gold anomalies over a broad area but clearly associated with specific rocks, i.e. exhalite, rhyolite debris aprons or breccia. These associations prompted the identification of a geologic environment which incorporated these features. The Volcanogenic Massive Sulfide (VMS) model incorporates the geologic and geochemical features observed to date”.
  • Kootenay Silver Inc. informed significant progress has been made on the 15,000 m drilling campaign at Columba, in Chihuahua. The current program will test extensions of the F, D, B and JZ veins and exploratory step-outs on other prospective veins. The V vein has been traced for over 700 m of strike and 200 m of depth with an average of 2 m in width, the D vein has been hit along 430 m of strike and 340 m of depth with an average of 6.9 m in width.
  • Tocvan Ventures Corp. informed that seven reverse circulation drill holes for a total of 1,382 m have been completed on the phase III drill program at Pilar, in Sonora.
  • Alien Metals Ltd. updated on exploration work at its San Celso and Donovan 2 projects in Zacatecas. Three holes totaling 201 m were drilled at San Celso and four holes at Donovan 2 for 410 m. No significant intersections were returned for San Celso. At Donovan 2, a 1.87 m interval returned 0.33% Cu, although the recovery was in the 15-20% range. A weak Zn anomaly correlates with a similar zone in a previous hole.
  • Mammoth Resources Corp. provided results from four holes at its Tenoriba project in Chihuahua. The four holes totaled 388.95 m brining the total to 2,623.55 m in 21 holes. Highlighted intercepts comprise 81.0 m @ 0.45 gpt Au, 2 gpt Ag (including 12.0 m @ 1.03 gpt Au, 3 gpt Ag); 10.6 m @ 1.14 gpt Au, 18 gpt Ag; 30.0 m @ 0.32 gpt Au, 3 gpt Ag; 48.0 m @ 1.11 gpt Au, 7 gpt Ag (including 4.5 m @ 2.88 gpt Au, 4 gpt Ag).

ON MINING

  • Coeur Mining Inc. reported second quarter 2022 financial results, including figures from its operations in Mexico. At Palmarejo, in Chihuahua, 539.6 K tonnes were milled @ 1.68 gpt Au, 125 gpt Ag, recovering 92.4% Au, 84.2% Ag, to produce 27,109 Oz Au, 1.79 M Oz Ag. Four drill rigs are to be active in the third quarter 2022 on infill drilling of the Hidalgo and Nacion zones and expansion drilling on the NW Hidalgo and La Carmela zones.
  • Torex Gold Resources Inc. released financial and operating results for the second quarter 2022. During the period, 123,363 Oz Au were produced at its El Limon-Guajes project in Guerrero, at total cash cost $703 per Oz Au and AISC of $911. Construction at Media Luna (close to El Limon-Guajes), is well underway, with a physical progress of 5%, including the development of 2,100 m at the Guajes tunnel and 700 m at South Portal. At the end of the period the company had net cash of $306.3 M with no debt and an undrawn $150.0 M credit facility.
  • Equinox Gold Corp. announced its second quarter 2022 financial and operating results. The report includes the sale of the Mercedes mine in Sonora to Bear Creek Mining Corp., but does not elaborate on production numbers for Mercedes or Los Filos in Guerrero, other than a guidance of 155-170 K Oz Au production from Los Filos in 2022.
  • First Majestic Silver Corp. presented financial results for the second quarter 2022. During the quarter the company negotiated and signed a conclusive agreement with the Mexican tax authority (SAT) though the office of the taxpayer ombudsman (PRODECON) to settle an uncertain tax position relating to intercompany debt financing in Mexico, with a one-time payment of $21.3 M. Consolidated production in Mexico was 6.16 M Oz AgEq, as shown in the table below.

ON FINANCING

  • Bear Creek Mining Corp. entered into a US$5.0 M loan facility with Auramet International LLC.. Bear Creek will sell Auramet 100% of the outrun from the Mercedes mine in Sonora until the note is paid in full and 50 K Oz thereafter (Mercedes, Sonora).
  • Heliostar Metals Ltd. closed its non-brokered private placement offering for gross proceeds of $3 M (Oso Negro and El Picacho, Sonora).
  • Tocvan Ventures Corp. announced the approval of the grant of 1.3 M incentive stock options to officers, directors and consultants of the company (Pilar, Sonora).
  • Ridgestone Mining Inc. intends to seek shareholder approval at its upcoming annual general meeting to consolidate its commons shares in a 20 to 1 ratio. “The proposed Consolidation remains subject to certain conditions including, but not limited to, the receipt of all necessary shareholder and regulatory approvals, including the approval of the TSX Venture Exchange”.

ON RESOURCES AND DEVELOPMENT

  • Discovery Silver Corp. is filing an amended technical report on the Cordero project in Chihuahua. The phrase “the Cordero project is technically and economically viable” was removed, as “the economic analysis is a preliminary economic assessment and cannot demonstrate economic viability”. Discovery is well advanced on a pre-feasibility study (PFS) to be completed on Q4 2022, which is to outline the technical and economic viability of the project.

ON DEALS AND CORPORATE ISSUES

  • Great Panther Mining Ltd. closed the previously announced sale of the Guanajuato Mine Complex (Guanajuato), the Topia mine (Durango) and the El Horcón and Santa Rosa projects (Guanajuato) to Guanajuato Silver Company Ltd.. The deal comprised US$8 M in cash, plus additional cash of US$1.35 M, US$6.7 M in GSilver shares, US$500 K when Topia produces an aggregate of 2.5 M Oz Ag and US$750 K if the silver price rises above US$27.50 per Oz for a month within two years of closing, and US$750 K if the silver price closes above US$30.00 per Oz for a month within three years of closing.
  • Ridgestone Mining Inc. announced the amendment of the property agreement on the Guadalupe y Calvo project in Chihuahua. The revised option agreement with Endeavour Silver extends the cash, share and work commitments of year 2 from February 2023 to March 2024, that of year 3 from February 2024 to March 2025 and that of year 4 from February 2025 to March 2026.

ON SOCIAL RESPONSIBILITY

  • Grupo Mexico’s metallurgical complex in Nacozari, Sonora, obtained the certificate “Great Place to Work”. The certification is recognized in more than 60 countries.

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