The Mining and Exploration News in Mexico: Highlights on the First Week of April, 2021

By Jorge Cirett

During the 13th week of the year (March 29th to April 4th, 2021), at least 38 press releases were announced by companies working in Mexico. To note, five companies posted exploration advances on their properties, three presented mining related news, six posted on financing or share options (including C$2.2 M, C$2 M, C$10.8 M and C$82.5 M), ten more on project development or resource definition and three posted on corporate issues. ON MEXICO ISSUES, listed mining companies in Mexico paid US$1.29 B in taxes during 2020. Americas Silver and the Mexican government are in talks to solve the company’s union issues after the president of Mexico threatened with concession cancellation. Fortuna Silver denied environmental damage by its mining unit in Oaxaca. ON EXPLORATION, In Sonora, Heliostar Metals released drilling results from La Lola. In Sinaloa, Vizsla Silver released drilling results from Panuco; Brigadier Gold continues drilling at Picachos. In Durango, Silver Wolf released grab sample results from its Ana Maria project; Commander Resources reported results from a soil survey at the Pedro project.  ON MINING, McEwen Mining negotiated the end of an illegal blockade at El Gallo in Sinaloa. Prime Mining reported financial results for its Q3, 2021. Mag Silver released financial results for 2020. ON FINANCING, Colibri Resource, Sonoro Gold, Telson Mining and Equinox Gold released news on financing (C$2.2 M, C$2 M; $10.8 M and C$82.5 M respectively. Torex Gold announced the early repayment of $40 M. Reyna Silver is to issue $699.3 K in shares to consultors and advisors. ON RESOURCES AND DEVELOPMENT, Fortuna Silver released results from step out drilling at its San José mine in Oaxaca. Argonaut Gold released consolidated mineral resources estimates of more than 11.5 M Oz Au, 174.9 M Oz Ag on its properties. SilverCrest Metals updated on construction and exploration activities. Southern Silver reported high-grade drill intercepts at Cerro Las Minitas, Durango. Torex Gold presented a resource estimate of 5 M Oz Au for Los Filos in Guerrero. Ridgestone Mining updated on work at Guadalupe y Calvo (Chihuahua) and Rebeico (Sonora). Minera Alamos selected mining contractor for its Santana project in Sonora. GoGold Resources released results from drilling at Los Ricos North in Jalisco. First Majestic updated mineral resources for its mines and projects, for 340 M Oz Ag, 3.2 M Oz Au. Fabled Silver informed on drilling at Santa Maria, Chihuahua.  ON DEALS AND CORPORATE ISSUES, GR Silver Mining completed the acquisition of Marlin Gold Mining and its land holdings in Sinaloa. Silver Bull informed it has won a definitive decision on a lawsuit related to an illegal blockade at its Sierra Mojada project in Coahuila. Argonaut Gold announced the cancellation of the agreement to sell the Ana Paula project in Guerrero. ON SOCIAL RESPONSIBILITY, Fresnillo PLC informed on cultural activities aimed at helping local communities and improving the environment.

ON MEXICO ISSUES

  • Listed mining companies in Mexico paid US$1.13 B ($1,1293 M in Mexican notation) in taxes on profits, or 9.2% on total earnings, in 2020. This amount is 44.6% higher year on year, influenced by the raise in precious metals. All companies in mining paid US$9.9 B (US$9,888 million in Mexican notation) in 2020 and provided work to 9,600 suppliers.  
  • Americas Gold and Silver director and high-level government executives met to try to find a solution to the union conflict affecting the company at its Cosalá operations in Sinaloa. Last week the president of Mexico threatened with legal action to invalidate the company’s mining concession (there is no legal basis to revoke the concession).
  • Minera Cuzcatlán (Fortuna Silver) informed there is no environmental damage produced by a spill of tailings during a storm in 2018 at its San José mine in Oaxaca.

ON EXPLORATION

  • Heliostar Metals Ltd. released results from the first two holes ever drilled at the 6,360 hectare La Lola project in Sonora. The company is testing the main La Barra quartz-calcite-fluorite vein, which is up to 40 meters in width and runs for 5 kilometers and shows textures typical of shallow low sulfidation epithermal systems. A massive to crystalline quartz-calcite-fluorite subparallel vein to La Barra vein returned a core length interval of 2.5 m @ 0.01 gpt Au, 92 gpt Ag.
  • Silver Wolf Exploration Ltd. released results from surface grab samples from its 2,549 ha Ana Maria project in Durango. Initial work includes ASTER image analysis followed by a drone Lidar and hyperspectral data acquisition and analysis. Results from the 22 grab samples include up to 0.96 gpt Au, 12 gpt Ag, 3,770 ppm Cu, 1,440 ppm Pb, 278 ppm Zn, 50% Fe, 4.5% Ba, 2,450 ppm W. CRD mineralization is the target in a sedimentary package affected by an intrusive igneous stock.
  • Commander Resources Ltd. reported results from a soil survey program at its 1,750 ha Pedro project in Durango. The epithermal gold target is 4 km long by 1 km in width, as defined by gold and arsenic in soils, rocks and IP geophysics. “Outcrop exposure comprises prominent hematite-stained silica-rich ridges of angular chalcedony fragments and silicified sedimentary rocks within an angular course breccia. The mineralization extends beneath post-mineral volcanic rocks, colluvium … and alluvium”.
  • Vizsla Silver Corp. released results from 16 holes on the Tajitos zone of the Panuco project in Sinaloa. These holes expand the length of Tajitos to over 525 m, while nine other completed holes are awaiting results. Highlighted true width intervals comprise 2.5 m @ 1,586 gpt Ag, 7.72 gpt Au; 4.48 m 351 gpt Ag, 4.52 gpt Au; 7.94 m @ 387 gpt Ag, 2.25 gpt Au (including 1.44 m @ 1,365 gpt Ag, 8.35 gpt Au).
  • Brigadier Gold Ltd. continues drilling at its Picachos property in Sinaloa. To date 4,538 m of the planned 5,000 m on phase-1 diamond drilling program has been completed in 43 holes that mainly targeted the more than 7 km long Colcomeca vein system. “Several stages of mineralization are apparent from inspection of the drill core: (i) pervasive silicification with disseminated sulfide that is oxidized to hematite, (ii) crustiform quartz veining with sulfides, and (iii) cockade breccias in the central part of the structure. These breccias consist of angular rock fragments that are altered to a soft black mica on fragment margins”.

ON MINING

  • McEwen Mining Inc. informed activities at El Gallo project in Sinaloa have been restored after the illegal blockade. A new 10-year agreement was reached providing additional support to the communities and greater long-term certainty for El Gallo operation.
  • Prime Mining Corp. reported its operating and financial results for third quarter of fiscal year 2021, ended on January 2021. In January Prime paid Vista Gold Corp. US$1.1 M in accordance with terms on the Los Reyes project (Sinaloa) agreement; a final payment of $1 M is due in July 2021. Before the end of the quarter 1,053 m of drilling were completed in 5 holes. Two more drill rigs have been mobilized to the project for expansion of known in-pit resources along strike and dip, and infill drill areas to increase measured and indicated resources and target other structures for resource expansion and discovery.
  • Mag Silver Corp. released its audited consolidated financial results for 2020. Processing at the nearby Fresnillo mine plant of mineralized material from development headings began in August, with 71,859 tonnes milled @ 328 gpt Ag, producing 616.3 K Oz Ag, 1,029 Oz Au, 163 tonnes Pb, 224 tonnes Zn, netting $11.46 M as gross profit. Construction of the 4,000 tpd Juanicipio plant continues and the underground development now exceeds 35 km. The plant is now expected to commence commissioning in Q4-2021 and to reach 90-95% capacity in 2022. By the end of the period the company had cash and cash equivalents of $94 M.

ON FINANCING

  • Colibri Resource Corp. is to conduct a non-brokered private placement for gross proceeds of up to CAD$2.2 M. (Evelyn, Sonora).
  • Sonoro Gold Corp. will undertake a non-brokered private placement offering to raise up to C$2 M (Cerro Caliche, Sonora).
  • Telson Mining Corp. closed the non-brokered private placement announced in February, for aggregate gross proceeds of $10.08 M (Tahuehueto, Durango).
  • Equinox Gold Corp. announced that in response to a request from Solaris Resources Inc. the company has agreed to sell 10 M shares of Solaris for gross proceeds of C$82.5 M (Los Filos, Guerrero).
  • Torex Gold Resources Inc. announced the early repayment of the $40 M of debt in relation to the 2019 Debt Facility and is now debt free other than approximately $5 M of finance leases. Torex has signed a Third Amended and Restated Credit Agreement in connection with a two-year senior secured $150 M revolving debt facility (Limón Guajes, Guerrero).
  • Reyna Silver Corp. will make an application to the TSX Venture Exchange for issuing $699.3 K in common shares as compensation to technical consultors and advisors advancing the portfolio properties of Reyna Silver (Guigui, Chihuahua).

ON RESOURCES AND DEVELOPMENT

  • Fortuna Silver Mines Ltd. released results from step-out drilling at the San Jose mine in Oaxaca. The 4,670 m program in 22 holes established continuity of high-grade mineralization in the upper levels of the La Trinidad footwall structures. Highlighted true width intercepts comprise 4.1 m @ 699 gpt Ag, 3.57 gpt Au; 5.4 m @ 1,931 gpt Ag, 6.76 gpt Au; 9.5 m @ 306 gpt Ag, 1.38 gpt Au; 3.4 m @ 760 gpt Ag, 3.24 gpt Au; 8.4 m @ 967 gpt Ag, 4.25 gpt Au; 1.4 m @ 809 gpt Ag, 2.78 gpt Au; 14.9 m @ 473 gpt Ag, 1.25 gpt Au. “The Brownfields exploration program budget for 2021 at the San Jose Mine is US$10.9 million, which includes 33,800 meters of diamond drilling and 1,770 meters of underground development for drilling access, platforms, and services”.
  • Argonaut Gold Inc. released a new mineral resource estimate to the end of 2020, including figures for its projects in Mexico. The table below includes figures for El Castillo and San Agustin in Durango, La Colorada in Sonora, Ana Paula in Guerrero and San Antonio in Baja California Sur.    
  • SilverCrest Metals Inc. released financial results for 2020 and updated on construction and exploration activities. At Las Chispas, in Sonora, 173,000 m of in-fill and expansion drilling and 6.1 km of underground development and in-vein drifting were completed in 2020. At the end of the year SilverCrest entered into a $76.5 M construction contract for a 1,250 tonnes per day process plant at Las Chispas. In February 2021 a feasibility study (FS) was completed, at an estimated cost of $137.7 M; also in February the company completed a bought deal offering for gross proceeds of $138.1 M. The Picacho property, 40 km from Las Chispas, was acquired in mid 2020, and 5,800 m were drilled before the end of the period. For 2021, 356,000 m of drilling are planned, mostly at Las Chispas; currently there are six core rigs at Las Chispas and three at Picacho, with 22,000 m and 10,000 m already drilled during 2021 respectively. At the end of 2020 the company held $135.1 M as cash and cash equivalents.
  • Southern Silver Exploration Corp. reported high-grade Cu-Au-Ag intercepts at its Cerro Las Minitas project in Durango. At Mina La Bocona target, highlighted true-width intervals comprise: 6.3 m @ 134 gpt Ag, 0.5 gpt Au, 2.3% Cu (including 1.1 m @ 567 gpt Ag, 2.3 gpt Au, 11.2% Cu in the Bocona Chimney, and 3.8 m @ 217 gpt Ag, 0.3 gpt Au, 3.3% Pb, 0.7% Zn in the Muralla Chimney.
  • Torex gold Resources Inc. reported that in 2020 total reserves for El Limón Guajes complex in Guerrero declined 15% due to depletion. The table below shows total reserves and resources to the end of 2020.
  • Ridgestone Mining Inc. provided an update on activities at its Rebeico and Guadalupe y Calvo projects. At Guadalupe y Calvo in Chihuahua, Ridgestone is working to review all the historical data in the project, which includes over 78,000 m of drilling since the early 2000’s. “The Company anticipates a phased exploration drill program which will serve to confirm the continuity within the historical resource area, in addition to targeting a significant expansion of known mineralization”. At Rebeico, in Sonora, “The Company is currently recompiling and reinterpreting the results from prior exploration campaigns and anticipates providing an update in the near-term”.
  • Minera Alamos Inc. selected TRIGUSA as mining contractor for its Santa mine in Sonora. “Trigusa’s mining experience includes open pit mining, crushing, tailings dam construction and heap leach pads and ponds at projects in multiple states including Sonora”. The major construction activities related to the gold recovery (carbon) plant are now complete and the initial heap leach pad area has also been completed.
  • GoGold Resources Inc. released the results from 7 drill holes from El Orito area at its Los Ricos North project in Jalisco. Highlighted core length intercepts comprise 25.9 m @ 9 gpt Ag, 0.25%Pb, 0.85% Zn; 20.0 m @ 10 gpt Ag, 0.27% Pb, 1.08% Zn; 28.2 m @ 45 gpt Ag, 0.10 gpt Au, 0.58% Pb, 1.26% Zn; 11.4 m @ 27 gpt Ag, 0.24% Cu, 2.04% Pb, 5.20% Zn; 48.6 m @ 35 gpt Ag, 0.19% Cu, 1.24% Pb, 2.36% Zn (including 6.4 m @ 139 gpt Ag, 0.17 gpt Au, 0.82% Cu, 3.76% Pb, 6.70% Zn); 31.4 m @ 44 gpt Ag, 0.10 gpt Au, 0.13% Cu, 0.89% Pb, 0.86% Zn; 31.4 m @ 35 gpt Ag, 0.20 gpt Au, 0.14% Cu, 0.36% Pb, 0.28% Zn. “The El Orito deposit is unique in the Los Ricos district as it is the deeper part of the system where silver and base metals are present, while the other targets in the system to date have shown only silver and gold”.
  • First Majestic Silver Corp. filed updated technical reports for its three operating mines: San Dimas in Sinaloa, Santa Elena in Sonora and La Encantada in Coahuila. Below is a table that also includes the resources for San Martín in Jalisco, La Parrilla in Durango, Del Toro in Zacatecas and La Guitarra in Estado de Mexico.
  • Fabled Silver Gold Corp. informed on the currently ongoing  8,000 m drilling program at its Santa Maria project in Chihuahua. “We are heading into areas never explored before, with new ideas to test our structure-on-structure theory over the Property. Hole SM20-07 intercepted two broad zones of northwest trending, never seen before, semi-massive marcasite, (pyrite) in hornfels, and to the east 225 meters, we tried to cross the major C1 regional north – south fault in the center of the Property.”

ON DEALS AND CORPORATE ISSUES

  • GR Silver Mining Ltd. completed the acquisition of Marlin Gold Mining Ltd., which owns La Trinidad mine in Sinaloa and 12 concessions totaling 107,392 ha adjacent to GR Silver’s existing portfolio of properties. The properties come with a database that includes 700 stream sediment samples, 500 rock samples and over 9,000 soil samples. A total of 40,500 m of diamond, RC and sonic drilling were completed by previous operators. GR Silver will pay CDN$50 K to Mako, and “Oro Gold will grant Mako a 1% net smelter return (“NSR”) royalty on the concessions owned by Oro Gold. GR Silver Mining and/or Oro Gold will be granted the right to purchase the NSR at any time upon making a one-time payment of US$2,000,000. Mako shall be responsible for and shall pay all costs related to the Closure Plan Activities at La Trinidad….”.
  • Silver Bull Resources Inc. announced “it has won a definitive and conclusive decision in its favor in a lawsuit filed by a local mining co-operative called Minera Norteños in relation to the Sierra Mojada project” (Coahuila). “Despite the fact that the Company has at all times proceeded in accordance with the law, the Sierra Mojada project remains under an illegal blockade manned by a small group of radical members from within Minera Norteños. We believe their actions do not represent the view of the vast majority of the Minera Norteños members and wider local community, and we are working with authorities to resolve the situation in a safe, fair, and timely manner. We remain committed to good faith dialogue with selected members from Minera Norteños to find a solution….”
  • Argonaut Gold Inc. informed that the previously announced definitive agreement to sell its Ana Paula project in Guerrero expired in March 31, 2021. “The acquiring company did not fulfill its obligations in relation to financing and receipt of certain regulatory and other approvals”.

ON SOCIAL RESPONSIBILITY

  • Fresnillo PLC informed on cultural activities aimed at helping local communities and improving the environment.

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

On the image below:  Boiling texture in a quartz vein from a project in Sonora. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the Fourth Week of February, 2021.

By Miguel A Heredia

During the fourth week of the year (February 22th to February 28th, 2021), at least 39 press releases were announced by companies working in Mexico and 7 news published by the media, with eleven announcing financial rounds, nine reporting  on resources and development of their mine operations, seven disclosing deals and corporate issues, six commenting on Mexican issues, five informing on exploration results, five discussing social issues, and three communicating production and financial results.  ON MEXICO ISSUES, Mining and Steel companies resumed activities after power outage. Mining is on alert for the possibility that the Mexican Congress approves the initiative of President Andrés Manuel López Obrador to modify the Electricity Industry Law and favor Federal Electricity Commission (CFE). Los Gatos Silver announced restoration of full grid power at its Cerro Los Gatos mine in Chihuahua. According to the Fraser Institute, Chile, Peru, and Mexico have lost global appeal for mining investment. According to Fresnillo plc, half of the electricity used by the La Herradura mine in Sonora comes from clean energy. The president of Mexico, Andrés Manuel López Obrador, has remained firm in his decision not to grant new mining concessions, a measure that has been described as one of the main challenges for the sector.  ON EXPLORATION, In Sonora, Aztec Minerals and its JV partner Kootenay commenced 2021 exploration program at its Cervantes project, and SilverCrest released drill results from its Picacho project. In Nayarit, Xali delineated new drill targets at its El Dorado project. In Jalisco, GoGold released drill results from 12 holes collared at its Los Ricos North project.  ON MINING, Capstone informed that it is on track for ramp-up to 3,780 tonnes per day at its Cozamine mine in Zacatecas by end of Q1, 2021, and reported Q4 and full-year 2020 production and financial results. Gold Resource reported full year 2020 production and financial results from its Don David mine in Oaxaca. Torex announced Q4, 2020 and full year 2020 production and financial results from its Limon-Los Guajes mine complex in Guerrero.  ON FINANCING, Carlyle granted stock options to directors and consultants (Cecilia project, Sonora). Coeur announced its intention to offer USD $350M of senior notes due 2029 (Palmarejo mine, Chihuahua). Capstone closed a USD $150M silver stream agreement with Wheaton Precious Metals (Cozamine mine, Zacatecas). Discovery Metals announced that an aggregate of 31,140,000 common share purchase warrants were exercised (Cordero project, Chihuahua). Fabled announced an exercise of warrants for gross proceeds of $4,150,000 (Santa Maria property, Chihuahua). Orla completed layback agreement with Fresnillo on its Camino Rojo project in Zacatecas. Santacruz, through its subsidiary Carrizal Mining, entered into a definitive agreement with Minera Cedros, a subsidiary of Industrias Peñoles, to acquire the Zimapan mine in Hidalgo. SilverCrest completed its previously announced bought deal offering for gross proceeds of USD $138,069,000 (Las Chispas project, Sonora). Telson executed a LOI with Accendo Banco to provide financing up to USD $25M to complete the construction of its Tahuehueto mine in Durango, and also granted stock options to certain directors, officers, and insiders.  ON RESOURCES AND DEVELOPMENT, Alamos Gold reported minerals reserves and resources for the year-ended 2020 (Mulatos mine, Sonora). Aloro informed that Alamos Gold has initiated its field exploration program on its Los Venados project in Sonora. Chesapeake presented its 2021 work program at its Metates project in Durango. Excellon released results from underground expansion and exploration drilling from its Platosa property in Durango. Fabled released results from the third drill hole collared at its Santa Maria property in Chihuahua. GR Silver announced that it is conducting a ground geophysics program at its San Marcial project in Sinaloa, incorporating magnetometry and 3D IP. Orogen provided an update on its Ermitaño property in Sonora. Prime announced that a fifth core drill rig has been added at Los Reyes project, Sinaloa. Xtierra released drill results from two holes collared at the Victor Vein at its Bilbao deposit in Zacatecas.  ON DEALS AND CORPORATE ISSUES, Barksdale announced the appointment of its Corporate Secretary as well as the grant of stock options to directors, employees and consultants. Colibri signed an option agreement with Bimsa to acquire 100% interest in the Diamante gold project in Sonora. Equinox announced that shareholders and optionholders of Premier approved the acquisition (Mercedes mine, Sonora). GR Silver announced the appointment of its VP Corporate Comminications (Plomosas property, Sinaloa). Autlan announced the appointment of its CEO (Molango mine, Hidalgo). US Antimony announced that trading of its common shares at the New York Stock Exchange (NYSE) has been halted. VanGold announced the appointment of Ramón Dávila to join to its Advisory Board (Pinguico property, Guanajuato).   ON SOCIAL RESPONSIBILITY, Fresnillo plc through its San Julian mine reinforced sanitary measures with campaign in Guadalupe and Calvo, Chihuahua. Minera Media Luna (Torex Gold) and the Universidad de Guerrero signed an environmental monitoring agreement (Limon-Guajes mine complex, Guerrero). Minera Peñasquito (Newmont) donated ventilators to the Medical Specialties Unit (UNEME) in Zacatecas. Mina Santa Elena (First Majestic) donated rapid COVID 19 antigen tests and face masks to municipalities of Baviácora, Aconchi, San Felipe de Jesús, Huépac, Banámichi, and Arizpe in Sonora.

ON MEXICO ISSUES

  • Mining and Steel companies operating in Mexico resumed activities after power outage. The companies normalized their operations after the energy deficit caused by the polar wave in Texas affected their operations. Local operations in the silver, gold, coal and iron mines were suspended or restricted after the US state halting natural gas exports amid a historic winter storm. The interruption of natural gas shipments has generated calls for Mexico to invest in gas storage and diversify its energy matrix.
  • Mining is on alert for the possibility that the Mexican Congress approves the initiative of President Andrés Manuel López Obrador (AMLO) to modify the Electricity Industry Law and favor Federal Electricity Commission (CFE). AMLO said that he will seek to get his proposal approved without changing a single comma. The government last week began a campaign to emphasize the alleged damage that the actions of the IP have brought to the company headed by Manuel Bartlett. Mining is one of the industries that will be affected. Simply the companies that invested in self-supply projects managed to lower the cost of the fluid from 12 or 13 cents of a kilowatt (kw) / hour to 6.5 cents. Those that depend on CFE pay between 8 and 9 cents per kw / hour, far from the level of their competitors in Peru or Chile, which are at 6 cents, let alone those in the US at 4 cents and Canada 2 cents.
  • Los Gatos Silver Inc., announced restoration of full grid power at its Cerro Los Gatos mine in Chihuahua. Given the expedited restoration of full grid power, the outage has had minimal impact on the Company’s mining and processing activities.
  • According to the Fraser Institute, Chile, Peru, and Mexico have lost global appeal for mining investment. In Mexico, concerns about the policies of President Andrés Manuel López Obrador explain the reason for his fall from 4 positions in attractiveness to invest, to place 42. In perception of its policies, it was located in a weak 61st place after descending 10 notches. “The Federal Government is hostile towards the mining industry and is not issuing new permits,” said a company president, echoing concerns the industry has recently expressed.
  • According to Fresnillo plc, half of the electricity used by the La Herradura mine in Sonora comes from clean energy such as wind and solar, with which, through its strategy of sustainability reiterates its commitment to caring for the environment. It has allowed the saving of 4,051 Mhw, which represents an estimated reduction of 2 thousand 358 tons of CO2e. The company reports that for a decade it has invested in the use of renewable energy sources in order to make its processes cleaner and, with it, to be able, in the medium term, to achieve that 75% of its electricity consumption comes from of wind energy.
  • The president of Mexico, Andrés Manuel López Obrador (AMLO), has remained firm in his decision not to grant new mining concessions, a measure that has been described as one of the main challenges for the sector.  AMLO has repeatedly said that his administration will not award new concessions, as his predecessors would have given parts of the country to mining companies too easily. While it may be difficult to obtain new concessions, mining companies can still acquire properties in the secondary market, since there are concession holders who are willing to sell if necessary.

ON EXPLORATION

  • Aztec Minerals Corp.,  and its JV partner Kootenay Silver Inc., commenced their 2021 exploration program at its Cervantes project in Sonora. The plan is to conduct a +500 soil samples to cover 518 hectares with 100m by 100m spaced samples aimed at extending previous soils grid and covering the Estrella and California North targets to the western, northern, and eastern limits of the property. Detailed lithologic, alteration, structural mapping and rock chip sampling will proceed along with the soil sampling program.
  • SilverCrest Metals Inc., released drill results from its Picacho project in Sonora. The best intercepts from initial drilling include hole PI-20-006 with 40.49 g/t Au, and 260 g/t Ag (3,297 g/t AgEq) over a true width (TW) of 7.25m; and hole PI-20-001 with 8.5 g/t Au and 51 g/t Ag (689 g/t AgEq) over a TW of 16.4m. To date, 42 drill holes have been collared at the Picachos property, with 21 intercepting an average of 4.1m with grades of 8.14 g/t Au and 50 g/t Ag (660 g/t AgEq).
  • Xali Gold Corp., delineated new drill targets at its El Dorado project in Nayarit, through the development of a new 3D geological model. The 3D model visualized high grade mineralization occurring in multiple parallel veins. Drill permits are in progress and are expected to take 3-4 months to get them approved.  Drilling is planned to test potential lateral extensions to the high grade zone.
  • GoGold Resources Inc., released drill results from 12 holes collared at its Los Ricos North project. Significant drill intercepts were encountered in hole LRGF-20-025 (Salomon area) with 0.26 g/t Au, 95 g/t Ag, (1.53 g/t AuEq or 115 g/t AgEq) over 70.5m, including 0.59 g/t Au and 251 g/t Ag (3.94 g/t AuEq or 295 g/t AgEq) over 20.1m, including 0.99 g/t Au and 404 g/t Ag (6.37 g/t AuEq or 478 g/t AgEq) over 10.1m, hole  LRGF-20-025 (Guitarrillas area) with 0.35 g/t Au and 107 g/t Ag (1.77 g/t AuEq or 133 g/t AgEq) over 18.3m, including 2.17 g/t Au and 566 g/t Ag (9.71 g/t AuEq or 728 g/t AgEq) over 2m; hole LRGF-21-033 (Salomon area) with 0.59 g/t Au and 116 g/t Ag (2.14 g/t AuEq or 160 g/t AgEq) over 33.9m, including 1.25 g/t Au and 433 g/t Ag (7.02 g/t AuEq or 527 g/t AgEq) over 3m; hole LRGF-21-033 (Guitarrillas area) with 1.94 g/t Au and 275 g/t Ag (5.6 g/t AuEq or 420 g/t AgEq) over 5.8m, including 4.14 g/t Au and 544 g/t Ag (11.39 g/t AuEq or 854 g/t AgEq) over 2.1m; and hole LRGF-21-033 (Los Chivos area) with 2 g/t Au and 486 g/t Ag (8.48 g/t AuEq or 636 g/t AgEq) over 8.8m, including 7.36 g/t Au and 1,693 g/t Ag (29.94 g/t AuEq or 2,245 g/t AgEq) over 2.3m.

ON MINING

  • Capstone Mining Corp., informed that it is on track for ramp-up to 3,780 tonnes per day at its Cozamine mine in Zacatecas by end of Q1, 2021.  During the period Q4, 2020, Capstone produced 10.3M Lb Cu at a cash cost of USD $0.63 per Lb Cu produced, and a total of 37.9M Lb in 2020 at a cash cost of USD $0.69 per Lb Cu produced.
  • Gold Resource Corporation reported full year 2020 production and financial results from its Don David mine in Oaxaca.  The company produced 20,473 Oz Au, 1.19M Oz Ag, 3.57M Lb Cu, 17.3M Lb Pb, and 44.12M Lb Zn in 2020, at a cash and AISC of USD $784 and USD $1,365 respectively per Oz AuEq, for a net income of USD $4.4M with revenue of USD $90.7M and mine gross profit of USD $12.5M.
  • Torex Gold Resources Inc., announced Q4, 2020 and full year 2020 production and financial results from its Limon-Los Guajes mine complex in Guerrero.  Torex produced in Q4, 2020, a total of 130,649 Oz Au at a cash and AISC of USD$579 and USD $886 per Oz Au produced, and sold 133,063 Oz Au for a net income USD $91.9M an adjusted EBITDA of USD $158.5M, cash flow from operations of USD $137.1M, and a free cash flow of USD $70.3M.  For the full year 2020, Torex reported a production of 430,484 Oz Au, at a cash an AISC of USD $672 and USD $924 per OZ Au produced respectively, with a sale of 437,310 Oz Au at a realized Au price of USD $1,771 per Oz, for revenue of USD $789M, a net income of USD $109M, an adjusted EBITDA of USD $431M, and an operating cash flow of USD $342M. Net cash for the year 2020 was USD $161.6M.

ON FINANCING

  • Carlyle Commodities Corp., granted stock options to directors and consultants for the purchase of 2.79M shares. The options are exercisable for a period of 5 years at an exercise price of $0.14 per share (Cecilia project, Sonora).
  • Coeur Mining Inc., announced its intention to offer USD $350M of senior notes due 2029. Net proceeds from the Offering will be used to pay the purchase price and tender premium for up to all USD $230M aggregate principal amount of its 5.875% senior notes due 2024, to pay the redemption price to redeem any of the 2024 notes that are not so tendered in the concurrent tender offer and to pay the fees and expenses in connection with the offering, the concurrent tender offer and any redemption of the 2024 notes. To the extent that the company has excess proceeds from the offering, the company intends to use such excess amounts for general corporate purposes (Palmarejo mine, Chihuahua). 
  • Capstone Mining Corp., closed a USD $150M silver stream agreement with Wheaton Precious Metals.  “All conditions to complete the Stream Agreement have been fulfilled and Capstone has received USD $150M from Wheaton for 50% of the silver productions until 10M Oz Ag have been delivered, thereafter dropping to 33% of silver production, for the life of mine from the Company’s Cozamin Mine in Zacatecas, Mexico. Wheaton will make ongoing payments equal to 10% of the spot silver price at the time of delivery for each ounce delivered to them”. 
  • Discovery Metals Corp., announced that an aggregate of 31,140,000 common share purchase warrants were exercised at a price of CAD $1.0 for gross proceeds of approximately CAD $31M. The company´s current cash balance has increased to approximately CAD $98M (Cordero project, Chihuahua)
  • Fabled Silver Gold Corp., announced an exercise of warrants for gross proceeds of $4,150,000. Following the exercise of the warrants, Fabled continues to have a total of 50,500,000 share purchase warrants outstanding that were previously issued under the financing. The Company has 185,251,903 total shares issued and outstanding as at February 19, 2021 (Santa Maria property, Chihuahua).   
  • Orla Mining Ltd., completed layback agreement with Fresnillo on its Camino Rojo project in Zacatecas. Orla will pay Fresnillo a total cash consideration of USD $62.8M through staged payments. The first payment of USD $25M was due to Fresnillo on closing of the transaction.
  • Santacruz Silver Mining Ltd., through its subsidiary Carrizal Mining SA de CV,   entered into a definitive agreement with Minera Cedros, a subsidiary of Industrias Peñoles SAB de CV, to acquire the Zimapan mine in Hidalgo and related assets, for a total consideration of USD $20M plus a VAT of USD $3.2M.  Assets to be acquired include a processing facility with a capacity of 75K dry tonnes per month, and Zn, Pb, Cu circuits; surface and underground infrastructure required for day to date operations; and 34 mining concessions totalling 5,139 hectares. Santacruz also entered into a loan facility with Trafigura México SA de CV in the amount of USD $17.6M from which USD $15M will be advanced to Peñoles on behalf of Carrizal on closing of the acquisition. The remains balance, USD $8.2M, is being financed by Minera Cedros. The USD $2.6M balance of the Trafigura loan represents the refinancing of existing debt owing to Trafigura by Carrizal and an affiliate.
  • SilverCrest Metals Inc., completed its previously announced bought deal offering for gross proceeds of USD $138,069,000. Gross proceeds will be used to expand the Las Chispas resources and reserves, through further drilling, to optimize the mine and processing plant design, to explore regional targets, and for general working capital purposes.  
  • Telson Mining Corporation executed a LOI with Accendo Banco SA de CV to provide financing up to USD $25M to complete the construction of its Tahuehueto mine in Durango. Telson also granted stock options to certain directors, officers and insiders of up to an aggregate 4.7M shares in the capital stock of the Company.  The options are exercisable on or before February 25, 2026 at a price of $0.30 per share, and the Company has also re-priced 1,873,333 stock options originally granted as to; 1,423,333 exercisable at $0.71 till November 10, 2022, 400,000 exercisable at $0.72 till April 16, 2023 and 50,000 exercisable at $0.71 till April 23, 2023.

ON RESOURCES AND DEVELOPMENT

  • Alamos Gold Inc., reported minerals reserves and resources for the year-ended 2020. Proven and probable reserves at Mulatos mine in Sonora are 33,935,000 tons of 1.24 g/t Au for a total of 1.35M Oz Au. Measured + indicated resources are 74,193.000 tonnes of 1.09 g/t Au for a total of 2.6M Oz Au, and Inferred resources are 9,291,000 tonnes of 0.91 g/t Au for a total of 271K Oz Au. Mineral reserves are exclusive of mineral resources.
  • Aloro Mining Corp., informed that Alamos Gold has initiated its field exploration program on its Los Venados project in Sonora. Focus of the program is the south portion of the property, adjacent to the Mulatos open pit.
  • Chesapeake Gold Corp., informed over its 2021 work program at its Metates project in Durango. This program will consists of approximately 2,500m drilling to recover 10 tonnes of PQ size material to conduct on 40 test columns metallurgical testwork focused on a new heap leach option, to determine the impacts of size, regent strengths, and ore types to determine the optimum oxidation and precious metal leaching parameters. In parallel, Chesapeake will update the previous PSF and add a scoping study for the sulphide heap leach to demonstrate the potential upside of this option.
  • Excellon Resources Inc., released results from underground expansion and exploration drilling from its Platosa property in Durango. Significant drill intercepts were encountered at the Rodilla, NE-1S, and Pierna Mantos with diamond drilling from underground in hole EX20UG491 at the Rodilla Area with 1,023 g/t Ag, 9.3% Pb, 4.5% Zn, and 0.1 g/t Au (1,422 g/t AgEq) over 8.9m, including 3,499 g/t Ag, 29.7% Pb, 10.3% Zn, and 0.1 g/t Au (4,623 g/t AgEq) over 2.2m; hole EX20UG493 at NE-1S Area with 673 g/t Ag, 6.7% Pb, and 7.1% Zn (1,092 g/t AgEq) over 2.4m;  hole EX20UG506 at 623 Area with 1,258 g/t Ag, 7.5% Pb, 2.4% Zn, and 0.1 g/t Au (1,258 g/t AgEq) over 1.6m; and hole EX21UG515 at Gap Area with 721 g/t Ag, 4.1% Pb, and 4.5% Zn (984 g/t AgEq) over 4m. Drilling continues to define and discover new mineralization in the gap Area with 300m of potential mineralized strike to be explored.
  • Fabled Silver Gold Corp., released results from the third drill hole collared at its Santa Maria property in Chihuahua. This third hole is part of an ongoing 8,000m drill program and intersected 85 g/t Ag and 0.49 g/t Au over 12.5m, including 214 g/t Ag and 1.08 g/t Au over 1.8m. “The 12.50 meter intersection has clearly defined a footwall and hanging wall structure with corresponding elevated silver values up to over 7 ounces of silver and remains open at depth. More importantly, the structure is very conformable and intersected exactly where predicted, which bodes very well for the expansion of Santa Maria and increasing the present NI 43-101 resources on the property with only 3 drill holes drilled to date.”
  • GR Silver Mining Ltd., announced that it is conducting a ground geophysics program at its San Marcial project in Sinaloa, incorporating magnetometry and 3D IP. The survey will initially focus on the resource area to characterize the known Ag-Pb-Zn mineralization therein, which hosts the NI 43-101 resource.
  • Orogen Royalties Inc., provided an update on its Ermitaño property in Sonora, currently under control of First Majestic Silver Corp., where Orogen holds a 2% NSR. Last January, First majestic announced a USD $42.1M investment for the development of Ermitaño project to support the construction of an underground mine infrastructure that began last year. First majestic plans to release a PEA by the end of March, and is currently conducting hydrological studies and geotechnical drilling for an upcoming PFS that is expected to be released in H2, 2021.  In addition, the company also plans to extract 30K to 60K tonnes of material for metallurgical testwork.
  • Prime Mining Corp., announced that a fifth core drill rig has been added at its Los Reyes project, Sinaloa. Prime commenced a 15,000m drill program in December 2020 and only ten has been completed to date. The plan is to complete the phase 1 drilling before onset of the rainy season in mid-August, complete a new geological resource model during the rainy season hiatus and then initiate an aggressive Phase 2 drilling program in Q4 2021.
  • Xtierra Inc., released results from two holes collared at the Victor Vein, located adjacent to and west of its Bilbao deposit in Zacatecas. Hole X6B intersected 108 g/t Ag, 0.31% Pb, 0.08% Zn, and 0.03% Cu (120 g/t AgEq) over a true width (TW) of 1.148m, and hole X7B intersected 61 g/t Ag, 5.5% Pb, 4.41% Zn, and 0.08% Cu (336 g/t AgEq) over a TW of 9.37m, including 82 g/t Ag, 6.8% Pb, 6.9% Zn, and 0.29% Cu over a TW of 0.61m, including 63 g/t Ag, 6% Pb, 6.4% Zn, and 0.08% Cu (412 g/t AgEq) over a TW of 0.36m, including 119 g/t Ag, 13.6% Pb, 11.4% Zn, and 0.01% Cu (795 g/t AgEq) over a TW of 0.70m, and including 107 g/t Ag, 8.2% Pb, 6.9% Zn, and 0.54% Cu (566 g/t AgEq) over a TW of 0.50m.

ON DEALS AND CORPORATE ISSUES

  • Barksdale Resources Corp., announced the appointment of its Corporate Secretary as well as the grant of stock options to directors, employees and consultants (San Javier project, Sonora).
  • Colibri Resources Corporation signed an option agreement with Bimsa Minera SA de CV to acquire 100% interest in the Diamante gold project in Sonora.   The Diamante property comprises two 1,057 hectares in two properties that borders El Mezquite project immediately to the west, and about 1.6km northwest of Colibri’s 1,130-ha Jackie project. To earn an initial 50%, Colibri has to pay USD $100K and incur the expense of completing 2,000m of drilling over the course up to two years, and also will be responsible for all exploration cost while preparing for such drilling program. In addition, Colibri will pay ½ of the property tax and security costs during this period.  Upon completion of its 50% earn-in, Colibri will become equal joint venture partners with Bimsa Minera and then Colibri will have an exclusive period of six months to purchase the remaining 50% of the joint venture by paying Bimsa Minera either of: i) USD $2.1M or ii) USD $1.4M and the grant of a 2% net smelter royalty (NSR) on the project.
  • Equinox Gold Corp., announced that shareholders and optionholders of Premier Gold Mines Limited approved the acquisition by Equinox Gold. “On closing of the Transaction, Premier shareholders will receive 0.1967 of an Equinox Gold share for each Premier share held, such that existing Equinox Gold and Premier shareholders will own approximately 84% and 16% of Equinox Gold, respectively, on an issued share basis. The Transaction is expected to close in March subject to certain regulatory approvals and other customary closing conditions”.  By approving the Transaction, Premier securityholders also approved the spin-out to Equinox Gold and Premier shareholders shares of a newly created US-focused gold production and development company to be called i-80 Gold Corp. (Mercedes mine, Sonora).
  • GR Silver Mining Ltd., announced the appointment of its VP Corporate Comminications (Plomosas property, Sinaloa).   
  • Compañía Minera Autlan SAB de CV announced the appointment of its CEO (Molango mine, Hidalgo).   
  • US Antimony Corporation announced that trading of its common shares at the New York Stock Exchange (NYSE) has been halted since before the opening of trading on Wednesday, February 17, 2021 as a consequence of selling common shares in a manner that violated Sections 301 and 713 of the Company Guide. “The violations relate to two non-underwritten transactions involving the sale of an aggregate of26,290,000 shares of common stock at a discount to the market price at the time of each transaction, with the first transaction, which closed on February 3, 2021, involving the sale of 15,300,000 shares of common stock at a purchase price of $0.70 per share, and with the second transaction, which closed on February 16, 2021, involving the sale of 10,990,000 shares of common stock at a purchase price of $1.30 per share”. The Company has been advised by NYSE Regulation that the Company’s common stock will resume trading on the NYSE American following the issuance of this press release and the filing of a Current Report on Form 8-K disclosing the receipt of the Letter, which the Company anticipates will be prior to the open of trading on Friday, February 19, 2021.
  • VanGold Mining Corp., announced the appointment of Ramón Dávila to join to its Advisory Board (Pinguico property, Guanajuato).  

ON SOCIAL RESPONSIBILITY

  • Fresnillo plc reinforced sanitary measures with campaign in Guadalupe and Calvo, Chihuahua.  Personnel from the San Julian mine delivered five thousand washable face masks through a caravan of more than 25 volunteers. The municipality of Guadalupe y Calvo has received different donations of face masks from the mining company that operates San Julian mine, adding more than 30 thousand items delivered. These surgical cloth mouth covers were manufactured by the “Yerbitas” community sewing workshop.
  • Minera Media Luna (Torex Gold) and the Universidad de Guerrero signed an environmental monitoring agreement  to encourages the inhabitants of Nuevo Balsas, Atzcala and Mezcala, communities located around the El Caracol dam and the Balsas rivers and San Juan de Cocula, to get involved in the Participatory Environmental Audit. “During the protocol ceremony, it was reported that 42 residents of Nuevo Balsas have participated in the taking of water and sediment samples, another 260 fishermen from the same town, Atzcala and Mezcala were surveyed for the evaluation of the fishing effort”. (Limon-Guajes mine complex. Guerrero).
  • Minera Peñasquito (Newmont) donated ventilators to the Medical Specialties Unit (UNEME) in Zacatecas. This UNEME has been converted into a COVID-19 Hospital for services of health, which receives people affected by SARS -Cov 2 from the State of Zacatecas, who require hospitalization and who are not beneficiaries of other social security systems. With this donation, Newmont reaffirms its commitment to Zacatecas in support of the most vulnerable population in the state and joins the efforts of health authorities in their fight against this pandemic. Newmont has delivered in Zacatecas more than MXP $28M, in hospital supplies and food packages.
  • Mina Santa Elena (First Majestic) donated rapid COVID 19 antigen tests and face masks to municipalities of Baviácora, Aconchi, San Felipe de Jesús, Huépac, Banámichi, and Arizpe in Sonora, with the aim of detecting suspicious cases and mitigating risks of contagion.

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, a quartz hydrothermal breccia displaying cockade texture and a quartz vein displaying boiling texture in an intermediate sulphidation epithermal system in a prospect in Chihuahua, Mexico.  Photo by Miguel A Heredia., Mexico.

The Mining and Exploration News in Mexico: Highlights on the Fourth Week of January, 2021.

Stibiconite crystals

By Miguel A Heredia

During the fourth week of the year (January 25th to January 31st, 2021), at least 43 press releases were announced by companies working in Mexico and 9 news published by the media, with twelve informing on exploration results, ten disclosing deals and corporate issues, nine announcing financial rounds, seven reporting on resources and development of their mine operations, six commenting on Mexican issues, five  communicating production and financial results, and three discussing social issues.  ON MEXICO ISSUES, Odyssey has been notified that the First Memorial filed in September 2020 in its pending North American Free Trade Agreement (NAFTA) case against Mexico has now been published by the International Centre for Settlement of Investment Disputes (ICSID). Mexico is the mining market with the highest tax burden compared to Canada, Chile, Peru, and the United States.  Fernando Alanís, president of the Mining Chamber of Mexico (CAMIMEX) declared that Mexico captured USD $2.5 B of investment in the mining sector in 2020, its lowest level in the last 13 years.  Ministry of Economic Development and Labor of Guerrero State seeks to recover jobs at Minera Media Luna (Torex Gold). The Mining Chamber of Mexico (CAMIMEX) presented its first Sustainability Report 2020. Businessmen from the mining and energy sector joined in the proposal to put a limit on the participation of workers in company profits (PTU) and to link them to productivity. ON EXPLORATION, In Sonora, Carlyle and Riverside announced the start of its first drilling program by early February at its Cecilia project and Aztec Minerals and its JV partner Kootenay announced plans for a two-phase exploration program at its Cervantes project. In Chihuahua, Mammoth commenced its 2021 field exploration program at its Tenoriba project, Consolidated Zinc reported exploration results from Potrero and Don Lucas targets, and Golden Minerals discovered new vein at its Yoquivo project. In Sinaloa, Vizsla released drill results from eighth holes collared at the Papayo prospect at its Panuco project, and Mithril provided an update on the exploration activities performed during the period Q4, 2020 at its Copalquin project.  In Jalisco, GoGold announced a new discovery at El Orito in its Los Ricos North project. In Veracruz, Azucar Minerals provided an update on drilling activities at its El Cobre project.  ON MINING, Consolidated Zinc reported Q4, 2020 production results from its Plomosas mine in Chihuahua. Endeavour reported 2021 production and cost guidance for their Mexican operations. Fresnillo plc reported Q4, 2020 from their Mexican operations. Gold Resource announced Q4, and full year 2020 production results from its Oaxaca Mining Unit in Oaxaca. Mag Silver reported Q4, 2020 production results from its Juanicipio project in Zacatecas.  ON FINANCING, Argonaut announced a $23M bought-deal public offering (El Castillo mine, Durango). VanGold increased its previously announced non-brokered private placement financing to $14.55M (El Pinguico project, Guanajuato).  Americas Gold and Silver closed its previously announced bought deal financing for aggregate gross proceeds of CAD $33.9M (Cosala mine, Sinaloa). Gainey announced that it has arranged a non brokered private placement for gross proceeds of up to CAD $500K (El Colomo, Nayarit). Mithril raised A $5M through a share placement (Copalquin project, Durango).  Elementals Royalties announced that its common shares are now eligible for electronic clearing and settlement (Mercedes mine, Sonora). Gold Resource declared January 2021 monthly dividend (Oaxaca Mining Unit, Oaxaca). Ridgestone closed the remaining tranche of its previously announced non-broken private placement for gross proceeds of $695K (Rebeico project, Sonora). ON RESOURCES AND DEVELOPMENT, Fabled presented initial diamond drill results from its Santa Maria project in Chihuahua. Capstone announced an updated technical report for its Cozamin mine in Zacatecas. Comet provided an updated Q4, 2020 activities report (Santa Teresa project, Baja California).  Oroco reported significant 3D IP survey results at its Santo Tomas project in Sinaloa. VanGold commenced a 12-14 drill holes program at its Pinguico project in Guanajuato. Minera Alamos provided a construction update at its Santana project in Sonora.   Great Panther announced an update on exploration strategy and programs for 2021 (Topia mine, Durango).  ON DEALS AND CORPORATE ISSUES, Mexican Gold engaged JDS Energy & Mining Inc., for a PEA at its Las Minas project in Veracruz. Canuc doubled its land position at San Javier project in Sonora. Magna Gold appointed its new CFO (San Francisco mine, Sonora). Defiance Silver entered into an option agreement to double its land position at its Tepal project in Michoacan. Vizsla announced strengthening of its senior management team and board (Panuco project, Sinaloa). First Majestic responded to market activity (San Dimas property, Durango). Mexican Gold appointed two new members as technical advisors (Las Minas project, Veracruz). Discovery Metals named to the 2021 OTCQX Best 50 (Cordero project, Chihuahua). Gainey provided an update on its Mexican projects and corporate activities (El Colomo project, Nayarit). Orex announced board changes and a grant of options (Sandra project, Durango). Magna Gold provided a letter to all of its shareholders in which it explained the strategy used to grow the company through strategic acquisitions and targeted exploration to evolve from a junior exploration company to an intermediate gold producer in Mexico (San Francisco mine, Sonora).  ON SOCIAL RESPONSIBILITY, Fresnillo plc strengthens education in times of pandemic. Peñoles reaffirms its commitment to promoting education through the implementation of academic programs that seek to develop skills and tools so that children and young people in Mexico aspire to a better future. The companies Autlán, Grupo México, Industrias Peñoles, Newmont-Peñasquito, Fresnillo plc and Coeur Mining participate in water management projects that were highlighted by the Mexican Mining Chamber (CAMIMEX) in its 2020 sustainability report.

ON MEXICO ISSUES

  • Odyssey Marine Exploration Inc., has been notified that the First Memorial filed in September 2020 in its pending North American Free Trade Agreement (NAFTA) case against Mexico has now been published by the International Centre for Settlement of Investment Disputes (ICSID). The $2.3 billion claim against Mexico under NAFTA relates to the unlawful denial of the environmental permit for subsidiary Exploraciones Oceanicas’ (ExO’s) offshore phosphate project.
  • Mexico is the mining market with the highest tax burden compared to Canada, Chile, Peru, and the United States, the main competing countries on the continent in terms of mining, according to the Mexican Mining Chamber (CAMIMEX). Mining faces heavy tax burden making the sector less competitive. 
  • Fernando Alanís, president of the Mining Chamber of Mexico (CAMIMEX) declared that Mexico captured USD $2.5 B of investment in the mining sector in 2020, its lowest level in the last 13 years. Mexico is a mining power globally. In 2019 it ranked among the top 10 positions in the world production of 17 minerals, including first in silver, second in fluorite, third in celestite and wollastonite, sixth in zinc, seventh in salt, eighth copper and ninth in gold, among others. Mining stands out as an activity that generates jobs, investments, foreign exchange, infrastructure, regional value chains, local consumption and contribution to social development. In 2019, the mining-metallurgical Gross Domestic Product (GDP) represented 8.1% of the industrial GDP and 2.3% of the national GDP.
  • Ministry of Economic Development and Labor of Guerrero state seeks to recover jobs at Minera Media Luna. The investment of USD $500M in the mining activity by Torex Gold in the municipality of Cocula, the creation of commercialization spaces through virtual stores on the Mercado Libre platform and the linking of credit institutions with small and Guerrerenses micro companies are some of the strategies that are implemented to recover more than 15 thousand formal jobs that were lost during 2020 in Guerrero.
  • The Mining Chamber of Mexico (CAMIMEX) presented its first Sustainability Report 2020. The publication is divided into three chapters, corresponding to good practices in mining in the social, environmental and economic spheres. Highlighted that the companies affiliated to CAMIMEX represent 90% of the value of the industry, and have a presence in 696 communities, in 24 states of the Mexican Republic. Regarding the regulations to which mining projects are subject to operate, mentioned a total of 1,077 rules, laws, norms, guidelines and agreements, in matters of labor competition, health, environment, fiscal, agrarian, etc. regarding some of the taxes paid by the mining, Fernando Alanís indicated that in 2019 a total of MXP $39,017M was contributed, for concepts such as ISR, surface rights, and new rights, and that the amount rose to MXP $ 131,016M in a period of four years. In 2019, mining companies invested MXP $ 1,056M in social development (in addition to the MXP $3,496M raised that year for the Mining Fund), managing to directly benefit more than one and a half million people.
  • Businessmen from the mining and energy sector joined in the proposal to put a limit on the participation of workers in company profits (PTU) and to link them to productivity. Fernando Alanís Ortega, president of the Mining Chamber of Mexico, highlighted that “continuing to manage PTU as a percentage of profit is essentially to consider it as if it would be an additional tax burden and it reduces our competitiveness. ”He proposed“to find how to relate the PTU to productivity factors”, so that it is the result of the effort and not of metal prices, as is currently the case.

ON EXPLORATION

  • Carlyle Commodities Corp. and Riverside Resources Inc., announced the start of its first drilling program by early February at its Cecilia project. Riverside as operator of the JV has designed six holes to test the un-drilled San Jose structure on the Cerro Magallanes where rock sampling returned up to 48.3 g/t Au over 0.75m. The San Jose target is one of the five major targets identified at the Cerro Magallanes rhyolitic dome.
  • Aztec Minerals Corp., and its JV partner Kootenay Silver Inc, announced plans for a CAD $1.3M, two-phase exploration program at its Cervantes project in Sonora. The JV plans to start a phase 1, CAD $85K program of soil and rock sampling and geological mapping during Q1, 2021 to extend the 100m by 100m geological and geochemical grid to the north, west and east boundaries of the property, and subject to phase 1 results and available funds, initiate a phase 2, CAD $1.05M drill program in Q3, 2021 consisting of 5,000m RC program in 22 holes, to test four main target: California, California North, Jasper, and Purisima East.
  • Vizsla Resources Corp., released drill results from eighth holes collared at the Papayo prospect at its Panuco project in Sinaloa. These drill results have expanded the Papayo zone over 120m o the south where it remains open. Significant drill intercepts were encountered in hole NP-20-50 with 198 g/t Ag, 0.96 g/t Au, 1.4% Pb, and 4.5% Zn (413 g/t AgEq) over 1.91m of true width (TW), including 478 g/t Ag, 2.19 g/t Au, 3.7% Pb, and 11.7% Zn (1,009 g/t AgEq) over a TW of 0.69m, and hole NP-20-36 with 144 g/t Ag, 1.21 g/t Au, 0.7% Pb, and 2.4% Zn (321 g/t AgEq) over a TW of 2.46m. 
  • Mithril Resources Ltd., provided an update on the exploration activities performed during the period Q4, 2020 at its Copalquin project in Sinaloa. The company informed that it has completed its maiden drill program of 7,188m of diamond core drilling. Results of the drilling confirmed that El Refugio-El Comets target is part of a large gold-silver epithermal system characterized by extensive surface alteration and rhyolite dome intrusions. The very high grade La Soledad and Leon veins intercepted at the start of the program are also part of this larger epithermal system. Drilling extension at depth and along strike is a key feature of the exploration for 2021.
  • Mammoth Resources Corp., commenced its 2021 field exploration program at its Tenoriba project. The company is currently installing the grid for the infill IP/Mag geophysics survey which is expected to begin in early-mid February. This geophysics survey will assist in 3D modeling of surface and subsurface features to generate drill hole locations and design a drill program scheduled to commence towards the end of the current quarter.
  • Consolidated Zinc Ltd., reported exploration results from the Potrero and Don Lucas targets during Q4, 2020. The company continued the regional mapping and sampling of the mineralized structures identified previously. A total of 67 samples were taken of which 48 samples collected at Potreros- Don Lucas targets returned discouraging results downgrading the prospectivity for economic gold mineralization. Results from 19 samples, including 10 from the Enrique and La Chona areas remain pending and will be released once they are available.
  • Golden Minerals Company, announced results from its recent 3,400m, 15-hole drill campaign and discovered new vein at its Yoquivo project in Chihuahua. Significant drill intercepts were encountered in hole YQ-20-001 collared at Pertenencia Vein with 2.34 g/t Au and 190 g/t Ag (364 g/t AgEq) over 4.2m, including 5.69 g/t Au and 223 g/t Ag (650 g/t AgEq) over 1.3m; hole YQ-20-002 collared at Pertenencia Vein with 0.45 g/t Au and 150 g/t Ag (184 g/t AgEq) over 1.9m, including 1.14 g/t Au and 423 g/t Ag (509 g/t AgEq) over 0.6m; hole YQ-20-006 collared at Esperanza Vein with 1.77 g/t Au and 49 g/t Ag (190 g/t AgEq) over 3.6m, including 5 g/t Au and 118 g/t Ag (524 g/t AgEq) over 1m; hole YQ-20-010 collared at New Vein with 1.9 g/t Au and 135 g/t Ag (278 g/t AgEq) over 5.4m, including 15.4 g/t Au and 1,150 g/t Ag (2,305 g/t AgEq) over 0.2m; and hole YQ-20-011 collared at New Vein with 1.3 g/t Au and 225 g/t Ag (323 g/t AgEq) over 12.3m, including 4.2 g/t Au and 734 g/t Ag (1,049 g/t AgEq) over 3m. The company plans to follow with a second phase drill program which could start in the next few months.
  • GoGold Resources Inc., released results from six initials drill holes and announced a new discovery at El Orito in its Los Ricos North project in Jalisco. Significant drill intercepts were encountered in hole LRGO-20-002 with 76 g/t Ag, 0.06 g/t Au, 0.16% Cu, 3% Pb, and 0.14% Zn (171 g/t AgEq) over 63.4m, including 170 g/t Ag, 0.1 g/t Au, 0.29% Cu, 7.5% Pb, and 0.07% Zn (384 g/t AgEq) over 23m, including 267 g/t Ag, 0.23 g/t Au, 0.22% Cu, 11.5% Pb, and 0.07% Zn (579 g/t AgEq) over 5.3m, including 320 g/t Ag, 0.11 g/t Au, 0.15% Cu, 14.4% Pb, and 0.08% Zn (686 g/t AgEq) over 6.7m; and hole LRGO-20-005 with 49 g/t Ag, 0.05 g/t Au, 0.45% Cu, 3% Pb, and 4.7% Zn (323 g/t AgEq) over 43m, including 85 g/t Ag, 0.11 g/t Au, 0.83% Cu, 4.8% Pb, and 7.6% Zn (538 g/t AgEq) over 14.3m. The known strike length of the El Orito – El Favor structure is now approaching 2,500m and is still open in both directions.
  • Azucar Minerals Ltd., provided an update on drilling activities at its El Cobre project in Veracruz. The company completed hole EC-20-108 at El Primo target, and announced that the deeper part intersected mostly propylitically altered intrusive rocks. Azucar also has moved the drill to Porvenir area and has completed two holes there and a third one is in progress. The company intends to continue exploration at the Primo, Porvenir, and Villa Rica targets in an effort to further delineate resource potential at the project beyond that contained in the initial Norte Zone resource estimate.

ON MINING

  • Consolidated Zinc Ltd., reported Q4, 2020 production and financial results from its Plomosas mine in Chihuahua. The company mined 7,910 tonnes with a further 2,891 tonnes mined and stockpiled underground due to poor haul truck availability for a total of 10801 tonnes grading 14.5% Zn, 8% Pb, and 50 g/t Ag from which, 6,842 tonnes of 14.3% Zn, 8% Pb, and 50 g/t Ag were processed to produce 423 tonnes of Zn concentrate and 45 tonnes of Pb concentrate, at a cash cost of $1.02 per Lb Zn produced and a cash cost of $1.05 per Lb Zn sold.
  • Endeavour Silver Corp., reported 2021 production and cost guidance for its three silver-gold mines in Mexico, the Guanacevi mine in Durango, the Bolañitos mine in Guanajuato and the El Compas mine in Zacatecas. The table below shows 2021 production and cost guidance for their Mexican operations:
  • Fresnillo plc reported Q4, 2020 from their Mexican operations. At Fresnillo mine, Zacatecas, the company processed 590,499 tonnes of 190 g/t Ag, 0.71 g/t Au, 1.1% Pb, and 2.2% Zn to produce 3.2M Oz Ag, 9,485 Oz Au, 11.58M Lb Pb, and 19.95M Lb Zn. At Saucito mine, Zacatecas, the company processed 671,429 tonnes of 195 g/t Ag, 1.4 g/t Au, 1.65% Pb, and 2.95% Zn to produce 3.4M Oz Ag, 23.2K Oz Au, 20.6M Lb Pb, and 30.95M Lb Zn. At its Pyrite Plant, Fresnillo processed 47,860 tonnes of 172 g/t Ag and 1.64 g/t Au to produce 194K Oz Ag and 820 Oz Au. At Cienega mine, Durango, Fresnillo processed 334,977 tonnes of 1.36 g/t Au, 139 g/t Ag, 0.6% Pb, and 1.1% Zn to produce 13.6K Oz Au, 1.3M Oz Ag, 2.95M Lb Pb, and 4.58M Lb Zn. At San Julian mine (Veins), Chihuahua-Durango border, the company processed 315,863 tonnes of 1.58 g/t Au and 103 g/t Ag to produce 15.1K Oz Au and 965K Oz Ag, while at San Julian mine (Disseminated Ore Body) it processed 572,962 tonnes of 0.09 g/t Au, 172 g/t Ag, 0.5% Pb, and 1.3% Zn to produce 925 Oz Au, 2.76M Oz Ag, 4.49M Lb Pb, and 12.95M Lb Zn. At Herradura mine, Sonora, the company processed 6,875,196 of 0.76 g/t Au and 1.5 g/t Ag to produce 134.4K Oz Au and 231K Oz Ag. At Noche Buena mine, Sonora, Fresnillo processed 1,638,305 tonnes of 0.5 g/t Au and 0.84 g/t Ag to produce 17.7K Oz Au and 9K Oz Ag.
  • Gold Resource Corporation, announced Q4, and full year 2020 production results from its Oaxaca Mining Unit in Oaxaca.  The company produced in Q4, 2020 a total of 6,854 Oz Au and 276.9K Oz Ag for a full year production during 2020 of 20,473 Oz Au and 1.19M Oz Ag. Preliminary annual base metal production included approximately 3.5M Lb Cu, 17M Lb Pb, and 43.4M Lb Zn.
  • Mag Silver Corp., reported Q4, 2020 production results from its Juanicipio project in Zacatecas. The company processed 30,397 tonnes to produce 230K Oz Ag and 443 Oz Au.

ON FINANCING

  • Argonaut Gold Inc., announced a $23M bought-deal public offering of flow-through common shares (El Castillo mine, Durango).
  • VanGold Mining Corp., increased its previously announced non-brokered private placement financing to $14.55M (El Pinguico project, Guanajuato). 
  • Americas Gold and Silver Corporation closed its previously announced bought deal financing for aggregate gross proceeds of CAD $33.9M. Part of the gross proceeds will be used for care and maintenance at the company´s Cosala operation mine in Sinaloa, as well as for general corporate and administrative expenses, repayment of outstanding debt obligations, and working capital.
  • Gainey Capital Corp., announced that it has arranged a non brokered private placement for gross proceeds of up to CAD $500K. The company plans to use the gross proceeds for due diligence on potential mineral concessions the company is currently looking, as well as for general working capital (El Colomo, Nayarit). 
  • Mithril Resources Ltd., raised A $5M through a share placement.   Now, the company is fully funded to continue the drilling program of over 10,000m at its Copalquin project in Durango.
  • Elementals Royalties Corp., announced that its common shares are now eligible for electronic clearing and settlement through the Depository Trust Company. Elemental’s common shares will continue to trade under the ticker symbol “ELEMF” on the OTC Markets. (Mercedes mine, Sonora).
  • Gold Resource Corporation declared its monthly dividend of one-third of a cent per common share for January 2021 payable on February 23, 2021 to shareholders (Oaxaca Mining Unit, Oaxaca).
  • Ridgestone Mining Inc., closed the last tranche of its previously announced non-broken private placement for gross proceeds of $695K (Rebeico project, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Fabled Silver Gold Corp., presented initial diamond drill results from the ongoing 8,000m drill program to be performed at its Santa Maria project in Chihuahua. The company has completed four holes for a total of 1,017m. Assays are still pending for holes SM 2020-02 to SM 2020-04 and the fifth holes is in progress.  The first hole (SM 2020-01) returned significant results with 0.18 g/t Au and 44 g/t Ag over 68.6m, including 0.35 g/t Au and 106 g/t Ag over 20m, including 0.27 g/t Au and 146 g/t Ag over 2m, including 1.09 g/t Au and 238 g/t Ag over 1.60m, and including 0.34 g/t Au and 151 g/t Ag over 1.90m.
  • Capstone Mining Corp., announced an updated technical report for its Cozamin mine in Zacatecas, and extends mine life to 2031. Proven + probable mineral reserves increased by 39% to 14.1M tonnes grading 1.77% Cu, 44 g/t Ag, 0.54% Zn, and 0.21% Pb for a total of 551.16M Lb Cu, 20.18M Oz Ag, 169.76M Lb Zn, and 63.9M Lb Pb contained, and measured and indicated mineral resources increased by 10% to 29.7M tonnes of grading 1.52% Cu, 44 g/t Ag, 1.1% Zn, and 0.32% Pb for a total of 994.28M Lb Cu, 41.5M Oz Ag, 720.9M Lb Zn, and 209.4M Lb Pb contained, and inferred resources of 13.87M tonnes grading 0.54% Cu, 39 g/t Ag, 2.23% Zn, and 0.74% Pb for a total of 165.34M Lb Cu, 17.4M Oz Ag, 681.2M Lb Zn, and 227.1M Lb Pb contained. The new reserve mine plan is projected to produce 512M Lb Cu and 16M Oz Ag over the next 10 years.
  • Comet Resources Limited, provided the Q4, 2020 activities report. The company was focused on setting up a field office as well as on the engagement of local geological consultants to move towards its initial drilling program in 2021. Comet completed a field mapping and sampling program in Q4, 2020, to support planning for and locations of initial drilling program. The plan is to get drill permits in Q1, 2021 and begins the initial drilling program by late in Q1, or early Q2, 2021. As announced on October 13, 2020, the JORC inferred mineral resource estimate for the Santa Teresa project was for 369K tonnes of 7.47 g/t Au for a total of 88.6K Oz Au contained.
  • Oroco Resource Corp.,  reported significant 3D IP survey results at its Santo Tomas project in Sinaloa. The survey is now approximately 80% complete, and Oroco has received preliminary inversion data for all stations surveyed to date.  The preliminary inversion model has successfully mapped the resistivity and chargeability characteristics along a swath 2.1km wide by 4.3 km along strike over the South Zone, North Zone and part of the Brasiles Zone.
  • VanGold Mining Corp., commenced a 12-14 drill holes program and will be conducted underground, within old workings at the historic El Pinguico mine in Guanajuato.
  • Minera Alamos Inc., provided a construction update at its Santana project in Sonora as it advances toward the commencement of mining. The company reported that the leach solution ponds are now fully lined and ready for operations, the plant foundations have been completed and all previously fabricated plant structures have been delivered to site in preparation for final installation that is now underway, The majority of the civil works for the heap leach pad area have been completed and the installation of the pad liner has commenced this week, and the crushing system previously acquired for potential future expansions at Santana is in transit from the U.S. to the Company’s staging facilities in Ciudad Obregón, Sonora.
  • Great Panther Mining Limited announced an update on exploration strategy and programs for 2021 (Topia mine, Durango).  At San Ignacio, Guanajuato, Great Panther plans to perform a 5,000m in-fill surface drilling program along the Purisima veins south of the development of the San Pedro ramp, deeper in the Purisima / Purisima alto vein system and continue testing for Au-Ag mineralization along 1.1km of Purisima vein north from the old San Ignacio shaft.  At Guanajuato mine, Guanajuato, the company will continue the geological mapping and sampling in accessible parts of the historical mining areas(now, near to be completed) and will be followed by a 10,000m of underground drilling along the north side of Valenciana, between Valenciana and Cata, and in the Pozos , Promontorio, and Guanajuatito areas. At Topia mine, Durango,  5,000m of surface drilling are planned focused on defining new mineral resources in six areas along the strike and down-dip extents of present mining efforts.

ON DEALS AND CORPORATE ISSUES

  • Mexican Gold Mining Cop., engaged JDS Energy & Mining Inc., for a PEA at its Las Minas project in Veracruz. The PEA is expected to be completed in Q2, 2021.
  • Canuc Resources Corporation, doubled its land position at San Javier project in Sonora by signing a purchase agreement for five claims comprising 416.9 hectares. To date, Canuc has accumulated a ground position 833.1 contiguous hectares.
  • Magna Gold Corp., appointed its new CFO (San Francisco mine, Sonora).
  • Defiance Silver Corp., entered into an option agreement to acquire 1,915 hectares surrounding its Tepal project in Michoacan. As a result, Defiance has doubled its land position at the project.  The company has agreed to pay the annual concession fees until a production decision has been made, upon which Defiance will pay the vendor USD $2 M for 100% ownership of the mining concessions.
  • Vizsla Resources Corp., announced strengthening of its senior management team and board with the promotions of its Technical Director and VP of Technical Services, and the appointment of its Country Manager (Panuco project, Sinaloa).
  • First Majestic Silver Corp., confirmed that it is not aware of any material, undisclosed information related to the Company that would account for the recent increase in the market price and level of trading volume of its ordinary shares (San Dimas property, Durango).
  • Mexican Gold Mining Corp., appointed two new members as technical advisors to assist the company as it moves Las Minas project, Veracruz towards a PEA.
  • Discovery Metals Corp., named to the 2021 OTCQX Best 50, a ranking of top performing companies traded on the OTCQX Best Market last year.  (Cordero project, Chihuahua).
  • Gainey Capital Corp., provided an update on its Mexican projects and corporate activities. The company took the decision to not continue with the option on the Las Margaritas project in Durango. The El Colomo project, Nayarit will continue to be the flagship project of the company.
  • Orex Minerals Inc., announced the resignation of one member of the board and the appointment of its new Director. Orex also granted 3.55M incentive stock options to directors, officers, and consultants (Sandra project, Durango).
  • Magna Gold Corp., provided a letter to all of its shareholders in which it explained the strategy used to grow the company through strategic acquisitions and targeted exploration to evolve from a junior exploration company to an intermediate gold producer in Mexico. Since the Company’s inception in 2017, it has returned 10x to the Company’s shareholders (San Francisco mine, Sonora).

ON SOCIAL RESPONSIBILITY

  • Fresnillo plc strengthens education in times of pandemic. Fresnillo plc has joined efforts in favor of education, training and development for the lives of thousands of young people, to boost their professional, economic and social growth.
  • Peñoles reaffirms its commitment to promoting education through the implementation of academic programs that seek to develop skills and tools so that children and young people in Mexico aspire to a better future. Peñoles has academic initiatives with a focus on reading, science, technology, human development, sports and culture for different educational levels.
  • The companies Autlán, Grupo México, Industrias Peñoles, Newmont-Peñasquito, Fresnillo plc and Coeur Mining participate in water management projects that were highlighted by the Mexican Mining Chamber (CAMIMEX) in its 2020 sustainability report.

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, stibiconite in a low sulphidation epithermal system in a prospect in Durango, Mexico.  Photo by Miguel A Heredia., Mexico

The Mining and Exploration News in Mexico: Highlights on the Fourth Week of November, 2020

By Jorge Cirett

During the 48th week of the year (November 23rd to November 29th, 2020), at least 22 press releases were announced by companies working in Mexico. To note, seven companies posted exploration advances on their properties and seven more published on project development. ON MEXICO ISSUES, Mining concessions surface has been reduced by 21% in this federal administration. Camimex delivered its “Cascos de Plata” awards. The COVID pandemic has accelerated the digital transformation in mining. ON EXPLORATION, in Sonora, Silver Viper informed on the status of exploration at its La Virginia project; Tarachi Gold released high-grade results from drilling at La Dura, on its Tarachi project. In Chihuahua, Reyna Silver has received drill permits for Guigui. In Sinaloa, GR Silver delineated a new mineralized zone at Plomosas; Brigadier Gold released high-grade results from the first holes at Picachos. Vizsla released assays from the first hole at the Agüita Zarca prospect in Panuco. In Puebla, Almaden Minerals reported on exploration of the SE zone at Ixtaca.  ON MINING, Impact Silver released third quarter financial results. Telson Mining began to send ore from Tahuehueto to a toll mill. ON FINANCING, Candente Gold closed a financing round raising $250 K. Alien Metals raised £2.5 M. ON RESOURCES AND DEVELOPMENT, Great Panther Mining updated the mineral resource estimate at its Guanajuato mine Complex. Minera Alamos has received the last significant permit to start plant construction at La Fortuna in Durango. Prime Mining mobilized the first rig to Los Reyes, Sinaloa. Sonoro Gold released results from 20 more drill holes at Cerro Caliche, Sonora. Premier Gold Mines reported results from delineation drilling at Mercedes, Sonora. Discovery Metals informed on drilling targeting bulk tonnage and high-grade veins at Cordero, Chihuahua. Orla Mining informed on the start of earth-moving activities at Camino Rojo, Zacatecas.  ON DEALS AND CORPORATE ISSUES, Candente gold is changing name to Xali Gold Corporation. Candelaria Mining sold a 0.5% royalty on production from Pinos, Zacatecas. ON SOCIAL RESPONSIBILITY, Peñoles and Fresnillo PLC informed on programs to aid communities near their operations. Newmont informed on a plan to achieve zero-emissions by 2050.

ON MEXICO ISSUES

  • The current federal government reduced by 21% the surface under mining concessions. This as a result of a strict review on the concessions current at the start of the federal administration, and the denial to issue new titles by the president.
  • Camimex (Cámara Minera de México) delivered the “Cascos de Plata” (Silver hard hats) awards to the six mining units with the best safety records in Mexico. The awards went to Agnico Eagle Mexico, Grupo Mexico’s La Caridad, America’s Gold & Silver Cosalá, Velardeña (Peñoles), Grupo Mexico’s Planta ESDE and Grupo Mexico’s Refinería Electrolítica de Zinc.
  • Mining companies state the COVID pandemic has accelerated the digital transformation and advanced automatization.

ON EXPLORATION

  • GR Silver Mining Ltd. Delineated a new mineralized zone, Yecora, from drilling in the San Juan area of its Plomosas project in Sinaloa. Highlighted results comprise 5.5 m @ 264 gpt Ag, 0.4 gpt Au, 0.3% Pb, 0.6% Zn; 19.0 m @ 49 gpt Ag, 1.8 gpt Au, 0.8% Pb, 1.4% Zn; 25.2 m @ 82 gpt Ag, 0.5 gpt Au, 0.9% Pb, 0.5% Zn; 3.2 m @ 27 gpt Ag, 0.3 gpt Au, 3.0% Pb, 11.4% Zn; 7.1 m @ 7.5% Zn, 2.4% Pb, 0.9 gpt Au; 3.3 m @ 11.3% Zn; 0.4 m @ 10.2 gpt Au, 2.1% Zn. “The San Juan Trend now extends for at least 2 km along strike, consisting of at least six mapped veins: San Juan, La Colorada, Yecora, Loma Dorada, La Odisea and San Francisco”.
  • Silver Viper Minerals Corp. informed on exploration at its La Virginia project in Sonora. The property was previously explored by Pan American Silver and Minefinders which sunk 188 drill holes for a total of 52,000 m of diamond drilling. Silver Viper acquired the project in 2018, starting by drilling gaps in the Las Huatas and Convirginia zones, and sunk five holes in a new area, El Rubi, where a new discovery was made in a zone with quartz veins, stockworks and breccias. In 2019 most work was a follow-up on El Rubi, with mapping and rock sampling, with a second drill campaign commencing by the end of that year that now has more than 15,000 m drilled. The company notes that hole LV20-245 (the last released, with 110 m @ 38 gpt Ag, 0.76 gpt Au) drilled 100 m west of El Rubi is a second discovery, showing the potential for open pit mining at the zone.
  • Reyna Silver Corp. has received drill permits for the Guigui project in Chihuahua. “The Guigui Project is located in the heart of the Santa Eulalia Mining District, home to Mexico’s largest Carbonate Replacement Deposit (CRD). The Santa Eulalia Mining District has produced 510 M Oz of silver, 4.2 MT of lead, 3.6 MT of zinc, at average grades of 310 g/t Ag, 8.2% Pb and 7.1% Zn.
  • Brigadier Gold Ltd. released results from the first three diamond holes of a 5,000 m program at its 3,954 hectares Picachos property on the Rosario district in Sinaloa. The 18th hole is being drilled, with the first 14 testing 225 m of strike length on the San Agustin vein and the rest now testing Los Tejones. Highlighted core length intercepts comprise 7 m @ 7.45 gpt Au, 51 gpt Ag (including 1 m @ 45.63 gpt Au); 1 m @ 1.33 gpt Au, 22 gpt Ag; 4.5 m @ 2.89 gpt Au, 50 gpt Ag (including 2 m @ 6.12 gpt Au, 52 gpt Ag); 2 m @ 2.71 gpt Au, 24 gpt Ag. Trench sampling returned 7 m @ 0.39 gpt Au, 53 gpt Ag; 1.5 m @ 7.53 gpt Au, 113 gpt Ag; 1.55 m @ 15.49 gpt Au, 109 gpt Ag (including 0.35 m @ 66.36 gpt Au, 99 gpt Ag); 1 m @ 3.21 gpt Au, 184 gpt Ag; 5 m @ 4.89 gpt Au, 67 gpt Ag.   
  • Tarachi Gold Corp. released results from underground diamond drill holes at La Dura mine on the Jabali concession of the Tarachi project in Sonora. Highlighted core length intercepts comprise 7.0 m @ 2.30 gpt Au; 14.5 m @ 5.49 gpt Au (including 7.0 m @ 9.67 gpt Au); 8.0 m @ 0.31 gpt Au; 20.1 m @ 4.54 gpt Au (including 10.0 m @ 7.48 gpt Au). Mineralization at La Dura is defined by a series of steeply dipping crackle brecciated quartz veins in dacitic volcanic rocks.
  • Vizsla Resources Corp. released results from the first hole drilled at the Agüita Zarca prospect of the Cordon de Oro vein at its Panuco project in Sinaloa. The drill hole intercepted core length intercepts of 18.15 m @ 118 gpt Ag, 3.71 Au (457 gpt AgEq), including 5.95 m @ 244 gpt Ag, 10.49 gpt Au (1,208 gpt AgEq). Directly above this intercept there is a trench channel sampling that returned 0.49 gpt Au, 161 gpt Ag (197 gpt AgEq).
  • Almaden Minerals Ltd. reported results from initial surface sampling of veins discovered in the Southeast Alteration Zone of the Ixtaca project in Puebla. These veins were discovered while mapping a clay alteration zone in volcanic rocks, and although not containing precious metals, show high values of trace elements for shallow epithermal systems.

ON MINING

  • Impact Silver Corp. released third quarter 2020 financial results. Average mill feed was 166 gpt Ag. “Silver production year to date 2020 was only down 4% compared to 2019 at 462,231 ounces despite the COVID-19 official shutdown required by Mexican government from April to June 2020”. Cash at the end of the period was $17.4 M.
  • Telson Mining Corp. has begun to send ore from its Tahuehueto project in Durango to the Atocha toll beneficiation plant. To date 3,000 tonnes have been delivered, of 3,500 tonnes on the current program. Telson informed that it is waiting for the final financing to finish the construction of a 1,000 tonnes per day plant at Tahuehueto.

ON FINANCING

  • Candente Gold Corp. closed the non-brokered private placement previously announced, raising a total of $200 K (El Oro, Estado de México).
  • Alien Metals Ltd. informed on the oversubscription of a financing placement that raised £2.5 M in gross proceeds.

ON RESOURCES AND DEVELOPMENT

  • Great Panther Mining Ltd.  updated the mineral resource estimate at its Guanajuato mine Complex, to July 31, 2020. The complex is comprised by the Guanajuato and San Ignacio underground mines and the 1,000 tpd Cata plant. The estimate includes 19,913 m of drilling in 199 holes since the previous resource calculation. The total resource comprises 821.8 K tonnes @ 199 gpt Ag, 2.07 gpt Au in the measured and indicated category and 1,453 K tonnes @ 185 gpt Ag, 2.25 gpt Au in the inferred category, containing 5.24 M Oz Ag, 54,693 Oz Au and 8.66 M Oz Ag, 105,219 Oz Au respectively. The company is working with permitting authorities to expand the capacity of the tailings storage facility, to extend operations beyond January 2021.
  • Minera Alamos Inc. informed the company has received the approval of the MIA (Manifestación de Impacto Ambiental or Environmental Impact Statement) from SEMARNAT for its La Fortuna project in Durango. The company possesses all the key federal approvals necessary for a 2,000 tonnes per day mine and plant construction.
  • Prime Mining Corp. has mobilized the first of at least two rigs for the incoming 10,000 m drill campaign at its Los Reyes project in Sinaloa. Furthermore, recent trench results were released, including 36 m @ 2.12 gpt Au, 19 gpt Ag; 9.0 m @ 0.43 gpt Au, 16 gpt Ag; 13.5 m @ 0.92 gpt Au, 31 gpt Ag; 33 m @ 1.47 gpt Au, 22 gpt Ag; 25.5 m @ 3.51 gpt Au, 32 gpt Ag; 51 m @ 1.37 gpt Au, 132 gpt Ag. Re-logging of core has found that adularia appears to be vertically zoned, which might aid in targeting high-grade zones.
  • Sonoro Gold Corp. reported results from 20 additional reverse circulation (RC) holes at its Cerro Caliche project in Sonora. Highlighted results comprise 45.72 m @ 0.97 gpt Au, 4 gpt Ag; 6.09 m @ 3.99 gpt Au, 9 gpt Ag; 1.52 m @ 7.80 gpt Au, 15 gpt Ag; 9.14 m @ 0.46 gpt Au, 12 gpt Ag; 10.67 m @ 0.96 gpt Au, 13 gpt Au; 13.72 m @ 0.30 gpt Au; 12.19 m @ 0.94 gpt Au, 3 gpt Ag; 1.52 m @ 2.26 gpt Au, 34 gpt Ag; 27.43 m @ 0.48 gpt Au, 1 gpt Ag; 16.76 m @ 0.33 gpt Au, 6 gpt Ag; 4.57 m @ 0.54 gpt Au, 6 gpt Ag; 9.15 m @ 0.54 gpt Au, 6 gpt Ag; 4.57 m @ 1.03 gpt Au, 6 gpt Ag; 1.52 m @ 2.64 gpt Au, 6 gpt Ag; 13.71 m @ 0.36 gpt Au; 19.81 m @ 0.57 gpt Au, 5 gpt Ag; 6.1 m @ 0.66 gpt Au, 6 gpt Ag; 6.1 m @ 0.46 gpt Au, 7 gpt Ag; 15.24 m @ 0.45 gpt Au, 3 gpt Ag.
  • Premier Gold Mines Ltd. reported on results from its delineation core drilling campaign at its Mercedes mine in Sonora. Highlighted true width results comprise 12.7 m @ 10.17 gpt Au, 294 gpt Ag; 8.1 m @ 7.49 gpt Au, 57 gpt Ag; 2.8 m @ 5.29 gpt Au, 30 gpt Ag at Marianas, 4.2 m @ 10.03 gpt Au, 119 gpt Ag; 2.3 m @ 5.31 gpt Au, 131 gpt Ag at San Martin and 10.2 m @ 7.12 gpt Au, 26 gpt Ag; 56.6 m @ 2.99 gpt Au, 12 gpt Ag (including 12.2 m @ 4.47 gpt Au, 21 gpt Ag); 14.2 m @ 4.86 gpt Au, 31 gpt Ag; 13.2 m @ 6.83 gpt Au, 27 gpt Ag at Diluvio stockwork zone. Marianas is the down plunge of the main Mercedes mine trend, composed of three main veins: Main, West and East. The San Martin vein was discovered by drilling in 2019, and Diluvio West consists of a vein stockwork system with a broad envelope.
  • Discovery Metals Corp. informed it has now completed 43,640 m of drilling in 111 holes as part of its expanded 55,000 m program at Cordero, Chihuahua. The focus has been on bulk tonnage targets and high-grade veins. Bulk tonnage targeting shifted from the North Corridor to the South Corridor, where broad zones of mineralization have been intercepted. On high-grade veins, the Todos Santos vein trend has been extended to 1.5 km, and the Porcinera vein to 350 m, both with high-grade intercepts.
  • Orla Mining Ltd. announced the start of earth moving activities at its Camino Rojo Oxide project in Zacatecas. “All permit conditions have been satisfied, including placing of an environmental bond, for site activities to begin. Major contracts for earth moving and civil works have been awarded and detailed engineering is 90% complete. Current activities include mobilization of the earthworks contractor, installation of the construction camp and offices, flora and fauna rescue, as well as site fence erection”.

ON DEALS AND CORPORATE ISSUES

  • Candente Gold Corp. announced the decision to change name to Xali Gold Corp.
  • Candelaria Mining Corp. sold a 0.5% NSR on production from the Pinos project, in Zacatecas, to Empress Royalty Corp. for US$750 K. Empress also purchased an additional 0.5% NSR from a previous royalty holder. The Pinos project is subject to NSR royalties of 2.0%.

ON SOCIAL RESPONSIBILITY

  • Industrias Peñoles is working along with the Teloloapan municipality museum, aiding with an augmented reality presentation in 3D of mining and metallurgic processes, that can be accessed in smart phones and tablets.
  • Fresnillo PLC reforested 7 hectares in Caborca and the surrounding communities during the last four years.
  • Newmont plans to reduce emission of CO2 by 30% and then achieve the zero-emissions target by 2050.

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

On the image below: Sulfide rich mantos in core from Cerro San Pedro, San Luis Potosí. Picture by Jorge Cirett.

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

Banded quartz vein

By Miguel A Heredia

During the forty five week of the year (November 2nd to October 8th, 2020), at least 28 press releases were announced by companies working in Mexico and 1 news published by the media, with ten communicating production and financial results, eight informing on exploration results, five reporting on resources and development of their mine operations, three announcing financial rounds, two disclosing deals and corporate issues and one discussing social issues. ON MEXICO ISSUES, no relevant news.  ON EXPLORATION, In Sonora, Carlyle and its JV partner Riverside received results from the geophysical survey carried out at its Cecilia project. In Chihuahua, Mammoth provided an update of the current activities it is performing at its Tenoriba project and Consolidated revealed exploration plans for its La Chona-Enrique and Potreros gold prospects. In Sinaloa, Brigadier announced that the first five core drill holes collared at its Picachos property have intersected the San Agustin Vein and Oroco announced progress of a 3D IP geophysical survey on its Santo Tomas project.  In Durango, Mithril presented drill results from its Copalquin project. In Jalisco, GoGold released drill results from its Los Ricos Norte project.  ON MINING, Gold Resource, Torex, Premier, Magna Gold, Endeavour Great Panther, First Majestic, Golden Minerals, and Pan American Silver reported Q3, 2020 production and / or financial results from their Mexican operations while Consolidated Zinc announced October 2020 production from its Plomosas mine in Chihuahua.   ON FINANCING, Gatos Silver completed its initial public offering and commencement of trading on the New York Stock Exchange and the Toronto Stock Exchange (Los Gatos mine, Chihuahua). Orla Mining completed the second tranche drawdown of USD $50M (Camino Rojo project, Zacatecas). Candente announced its intention to complete a non-brokered private placement for gross proceeds of up to $200K (El Oro project, State of Mexico).  ON RESOURCES AND DEVELOPMENT, SilverCrest announced new high grade discovery at its Las Chispas project in Sonora. Golden Minerals provided a business summary for the Q3, 2020 period (Rodeo property, Durango). Sonoro Gold announced drill results from its Cerro Caliche project in Sonora. Consolidated Zinc provided an update of its Plomosas operation in Chihuahua. Magna Gold provided a mine performance and operational update from its San Francisco mine in Sonora.  ON DEALS AND CORPORATE ISSUES, Aura announced results from its annual general and special meeting of shareholders (Aranzazu mine, Zacatecas). Defiance announced several appointments to its executive and management team (San Acacio project, Zacatecas). Mammoth reached agreement to extend surface access for two years with one of the two communities at its Tenoriba project in Chihuahua. ON SOCIAL RESPONSIBILITY, Minera Peñasquito continues supporting the communities in their fight against the COVID-19 pandemic.

ON MEXICO ISSUES

  • No relevant news.

ON EXPLORATION

  • Carlyle Commodities Corp. and it JV partner Riverside Resources Inc., received results from the 3.8 Km-line IP survey in five lines carried out across the Cerro Magallanes at its Cecilia project in Sonora. The IP survey defined resistive anomalies in an area where previous operators drilled 30m of 1.41 g/t Au. Carlyle has refined and detailed drill targets with the IP survey using 50-m dipole spacing. Carlyle and Riverside are expecting results in the upcoming weeks including a drone aeromagnetic survey and a batch of channel samples covering the E-W extension between The San Jose and Central targets.
  • Mammoth Resources Corp., provided an update of the current activities it is performing at its Tenoriba project in Chihuahua. Mammoth is advancing the 3D interpretation of its 2015 IP-Mag survey to enhance the understanding of features that appear to control mineralization intersected in previous drilling campaigns. It is also planning to conduct an additional up to 72 line-km IP-Mag to cover gap areas at El Moreno target where coarse gold nuggets were reported to occur. This additional survey is also planning to cover east and west of the eastern and western most areas covered by the past survey where the trend of the mineralization remains open.
  • Consolidated Zinc Limited revealed exploration plans for its La Chona-Enrique and Potreros gold prospects in Chihuahua. The company has engaged an experienced senior geologist to develop a deeper understanding of the gold mineralization within the regional concessions.
  • Brigadier Gold Limited announced that the first five core drill holes collared at its Picachos property in Sinaloa have intersected the San Agustin Vein up to 180 m below surface. The company has already sent the core samples of the five holes to the lab. Assays will be released upon completion of the analytical work.
  • Oroco Resource Corp., announced that approximately 40% of a 3D IP geophysical survey has been completed on its Santo Tomas project in Sinaloa. The IP survey was designed to cover an area of approximately 10 square kilometers of the property which will encompass the mineralized South Zone, North Zone and exploration targets in the Brasiles Zone. Results to date have shown a strong correlation between chargeability features and the historical drill results in the known sulphide mineralization at the South Zone, represented by a chargeability high and resistivity low response that spans 1Km wide by 1.2km long located below the volcanic and limestone units and above contact with an inferred Laramide batholiths exposed to the south and west of the South Zone. The responses are open at depth and to the east.
  • Mithril Resources Ltd., presented drill results from El Refugio target at its Copalquin project in Durango. The company also has drilled the Cometa target but assays are pending. At El Refugio target, significant drill intercepts were encountered in hole CDH-015 with 4.48 g/t Au and 119 g/t Ag (5.97 g/t AuEq) over 3.85m, including 6.32 g/t Au and 187 g/t Ag (8.66 g/t AuEq over 2.15m; hole CDH-019 with 2.05 g/t Au and 52 g/t Ag (2.71 g/t AuEq) over 3m; hole CDH-020 with 3.07 g/t Au and 94 g/t Ag (4.24 g/t AuEq) over 8.7m, including 7.52 g/t Au and 184 g/t Ag (9.82 g/t AuEq) over 2.9m, including 5.08 g/t Au and 117 g/t Ag (6.55 g/t AuEq) over 1.5m. Holes CDH-022 to 025 also intersected the Refugio Breccia but assay are pending. Mithril also announced that the drill will be moved to test the Los Pinos, Reyes, Constancia and Apolonia targets.
  • GoGold Resources Inc., released drill results from La Trini at its Los Ricos Norte project in Jalisco. Significant drill intercepts were encountered in hole LRGT-20-046 with 1.55 g/t Au and 70 g/t Ag (2.48 g/t AuEq or 186 g/t AgEq) over 17.2m, including 2.1 g/t Au and 109 g/t Ag (3.56 g/t AuEq or 267 g/t AgEq) over 11m; and hole LRGT-20-048 with 0.48 g/t Au and 54 g/t Ag (1.2 g/t AuEq or 90 g/t Ag) over 29.8m, including 1.96 g/t Au and 141 g/t Ag (3.84 g/t AuEq or 288 g/t AgEq) over 4.9m.  

ON MINING

  • Gold Resource Corporation reported Q3, 2020 production results from its Oaxaca Mining Unit in Oaxaca. The company processed 153,531 tonnes to produce 4,728 Oz Au, 324.6K Oz Ag, 943.6K Lb Cu, 4.76M Lb Pb, and 12.2M Lb Zn during Q3, 2020. Through the first three quarters, Gold Resource has processed 415,584 tonnes to produce 13,619 Oz Au, 912.5K Oz Ag, 2.56M Lb Cu, 12.8M Lb Pb, and 31.7M Lb Zn.
  • Torex Gold Resources Inc., announced Q3, 2020 production and financial results from its El Limon-Guajes Mining Complex in Guerrero. The company mined 1.52M of 3.15 g/t Au and processed 1.18M tonnes of 3.83 g/t Au at a metallurgical recovery of 89%. Torex produced 131.8K Oz Au at a cash cost and AISC of USD $633 and USD $877 per Oz respectively, and sold 133K Oz Au. The company reported revenues of USD $256.5M, cost of sales of USD $153.5M for a net income of USD $60.3M. It also reported adjusted net earnings of USD $51.3M, an EBIDTA and adjusted EBIDTA of USD $162.9M and USD $156.2M respectively. As at the end of September, cash position totaled USD $204M.
  • Premier Gold Mines Limited, released Q3, 2020 production and financial results from its Mercedes mine in Sonora. The company milled 117,751 tonnes of 3.37 g/t Au and 32 g/t Ag at metallurgical recoveries of 95.6% and 40.8% respectively to produce 12,183 Oz Au and 49,975 Oz Ag. Cash cost and AISC were USD $608 and USD $885 per Oz Au sold respectively. The company reported gold revenue of USD $20.3M and silver revenue of USD $1.2M (USD $21.5M total).
  • Magna Gold Corp., presented Q3, 2020 production results from its San Francisco mine in Sonora. The company sold 7,473 Oz Au.
  • Endeavour Silver Corp., reported Q3, 2020 consolidated production and financial results from its Mexican operations. The company produced 932.8K Oz Ag and 10K Oz Au at a cash and AISC of USD $3.69 and USD $17.48 per Oz payable Ag respectively. Endeavour reported revenue of USD $35.6M from the sale of 741.3K Oz Ag and 8,997 Oz Au, a cash flow of USD $10.3M before working capital changes, and a net income of USD $0.5M for a cash position of USD $44.9M and working capital of USD $53.8M.
  • Great Panther Mining Limited, released consolidated production results from their Mexican operation in Durango and Guanajuato for the period Q3, 2020. Great Panther mined 65,393 tonnes and milled 65,393 tonnes with a grade of 1.31 g/t Au or 311 g/t AgEq. 
  • First Majestic Silver Corp., announced Q3, 2020 production results from their Mexican operations. Figures for each operation are shown in the table below:

Cash and AISC were USD $2.49 and USD $9.94 per Oz Ag produced respectively. The company reported revenues of USD $125.9M, mine operating earnings of USD $48M, net earnings of USD $30.9M, cash and cash equivalents of USD $232.4M and working capital of USD $266.7M.

  • Golden Minerals Company announced consolidated financial results for the Q3, 2020 period. Golden reported revenue of USD $2.1M and a net operating margin of USD $1.6M related to the lease of its oxide´s plant to Hecla Mining Co., as well as a cash and cash equivalents balance of USD $8.7M.
  • Pan American Silver Corp., presented production and financial results for the period Q3, 2020 from its La Colorada mine in Zacatecas and Dolores mine in Chihuahua. At La Colorada mine in Zacatecas, Pan American produced 1.44M Oz Ag at a cash and AISC cost of USD $6.54 and USD $10.07 per Oz Ag produced respectively. At Dolores mine in Chihuahua, the company produced 871K Oz Ag at a cash and AISC of USD $5.12 and USD $22.92 per Oz Ag produced respectively.
  • Consolidated Zinc Limited reported October 2020 production from its Plomosas mine in Chihuahua. The company produced 216K Lb Pb and 584.2K Lb Zn resulting in sales of approximately USD $820K. Metallurgical recoveries were 72%Zn to Zn concentrates and 39% Pb to Pb concentrates.

ON FINANCING

  • Gatos Silver Inc., completed its initial public offering and commencement of trading on the New York Stock Exchange and the Toronto Stock Exchange under the ticker symbol “GATO”. Net proceeds will be used to increase Gatos Silver´s ownership in the Los Gatos District, explore and define further mineral resources within the 103,000 Ha of mineral concessions in the Los Gatos District, fund a future production expansion study at Cerro Los Gatos, retire high-cost debt, and for general corporate purposes.
  • Orla Mining Ltd., completed the second tranche drawdown of USD $50M on its previously announced project finance facility (credit facility). The funds will be used to develop its Camino Rojo project in Zacatecas.    To date, USD $75M of the USD $125M credit facility has been drawn. The third and final tranche of US$50 million must be drawn within six months of the second tranche and remains subject to meeting certain conditions precedent.
  • Candente Gold Corp., announced its intention to complete a non-brokered private placement for gross proceeds of up to $200K. Gross proceeds will be used to advance drill targets on its El Oro property in the State of Mexico, build a cash flowing business platform and gain access to properties with near surface exploration potential and for general working capital purposes.

ON RESOURCES AND DEVELOPMENT

  • SilverCrest Metals Inc., announced the discovery of the El Muerto zone, a new high grade discovery in the northwest part of the Babicanora Vein at its Las Chispas project in Sonora. The company has drilled 11,350m in 45 holes within El Muerto to expand high grade deeper in the Babicanora area. Highlights include hole EM20-37 with 12.68 g/t Au and 1,724 g/t Ag (2,675 g/t AgEq) over a true width (TW) of 1.5m, and hole EM20-35 with 9.46 g/t Au and 720 g/t Ag (1,430 g/t AgEq) over a TW of 1m. El Muerto has an estimated high-grade footprint of 500m along strike and 100-200m below the current resource in the Babicanora Vein. A weighted average of these drill results is 5.27 g/t Au and 389 g/t Ag (784 g/t AgEq) over a TW of 1.1m. El Muerto will be included in the updated resource that will be issued with the ongoing FS.
  • Golden Minerals Company provided a business summary for the Q3, 2020 period and announced planes for the development of its Rodeo property in Durango. Golden has completed the infill/definition drilling in preparation for projected production in Q1, 2021. It also commenced the installation of a new regrind mill circuit at its Velardeña´s oxide mill to improve recoveries and throughput of ore material projected to come from Rodeo project in 2021.
  • Sonoro Gold Corp., released results from 12 RC holes collared at its Cerro Caliche project in Sonora. Highlights include holes SCR-104 and SCR-106 collared at Japoneses with 1.28 g/t Au over 15.24m and 0.85 g/t Au over 16.76m respectively; holes SCR-096 and SCR-097 collared at Buena Suerte with 0.84 g/t Au over 16.76m and 0.51 g/t Au over 12.19m respectively. The company expects that these results will add ounces to the Cerro Caliche´s existing 201K Oz AuEq inferred resource estimate. Sonoro also drilled PQ core holes to obtain ore material to run metallurgical tests. “Management is expanding its development plans from the previously announced pilot level project to assess the economic viability of a proposed 8,000 ton per day mining operation”.
  • Consolidated Zinc Limited provided an update of its Plomosas operation in Chihuahua. Consolidated has commenced the reimbursement of its processing plant. A ball mill with capacity for 200 tonnes per day was identified, inspected and purchased. It also identified a flotation cells which plans to purchase.
  • Magna Gold Corp., provided a mine performance and operational update from its San Francisco mine in Sonora. The company is focused on establishing its San Francisco mine as a stable and profitable operation. Magna is advancing an underground decline to reach a higher grade vein system by the end of 2020. It also is conducting exploration drilling around its existing pits to expand the mineralized envelope as well as to indentify higher-grade underground mineral resource. Additionally, Magna has been pre-stripping both the San Francisco and La Chicharra open pits, and has been processing lower grade stockpile material and, more recently, fresh ore from the open pits. It has generated operating profit that has been re-invested into the mine. Magna remains on track to bring the San Francisco mine to full-scale operations in 2021.

ON DEALS AND CORPORATE ISSUES

  • Aura Minerals Inc., announced results from its annual general and special meeting of shareholders (Aranzazu mine, Zacatecas).
  • Defiance Silver Corp., announced several appointments to its executive and management team including its VP Exploration, VP of Corporate Development and Senior Technical Advisor, and Principal Geologist. The company also granted incentive stock options to certain directors, officers, employees, and consultants.
  • Mammoth Resources Corp., reached agreement to extend surface access for two years with one of the two communities at its Tenoriba project in Chihuahua. The company plans to meet with members of the second community and expects to obtain a similar two years extension agreement enabling Mammoth to advance exploration activities on its Tenoriba project. Meanwhile, the company awaits approval of a drill permit for up to 139 drill sites submitted in August, 2020.

ON SOCIAL RESPONSIBILITY

  • Minera Peñasquito continues supporting the communities in the fight against the COVID-19 pandemic. The company donated 10,000 one-liter gel bottles, 25,000 three-layer face masks, 500 KN95 face masks, and 1,500 plastic face mask.

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, banded quartz from a low sulphidation epithermal vein system in a prospect in Chihuahua, Mexico.  Photo by Miguel A Heredia.

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

By Jorge Cirett

During the 42nd week of the year (October 12th to October 18th, 2020), at least 32 press releases were announced by companies working in Mexico. To note, seven companies posted their quarterly reports, five on project development and three companies posted news on deals. ON MEXICO ISSUES, the Centro de Minería Compatible is being built in Zacatecas. What remains of the Mining Fund will source $2 M for infrastructure projects in Colima. The federal government generates uncertainty for the mining industry thorough its actions. Mergers and acquisitions boom in the Mexican mining industry. The lithium nationalization fears are played down by the Economy Secretariat. ON EXPLORATION, in Sonora, Minaurum Gold released high grade drilling results from its Alamos Silver project. Canuc released high-grade surface sample results from its San Javier silver play. Tocvan Ventures announced the interpretation of a second suspected breccia pipe at Pilar. In Chihuahua, Global Li-Ion Graphite is to realize a due diligence review on the MVZ project.  ON MINING, First Majestic, Premier Gold, Sierra Metals, Fortuna Silver, Excellon Resources, Telson Mining and McEwen Mining presented third quarter 2020 production reports. ON FINANCING, Telson Mining settled a $659.8 K debt with shares. Silver Bull Resources intends to raise up to US$1.85 M. Consolidated Zinc closed a $2.04 M placement. Santacruz Silver Mining closed the last financing round for aggregate gross proceeds of $2.36 M. ON RESOURCES AND DEVELOPMENT, Comet Resources released an initial inferred resource of 88.6 K Oz Au for its Santa Teresa project in Baja California. Prime Mining is to commence drilling at Los Reyes, Sinaloa, in November. Discovery Metals released high-grade results from the Todos Santos vein trend at its Cordero project in Chihuahua. GoGold Resources informed on results of drilling the La Trini deposit at its Los Ricos North project in Jalisco. Golden Tag is to commence drilling on its San Diego project in Durango. ON DEALS AND CORPORATE ISSUES, Silver Spruce signed a LOI with Colibri Resource to acquire the Jackie Gold project in Sonora. Tarachi Gold signed a LOI with Manto Resources on the Magistral del Oro tailings project in Durango. Silver Bull informed on the status of the illegal blockade at its Sierra Mojada project in Coahuila. ON SOCIAL RESPONSIBILITY. Industrias Peñoles, Minera Media Luna, Pan American Silver and Minera Penmont informed on sustainability, health, safety, environment and social and governance programs.

ON MEXICO ISSUES

  • The Centro de Minería Compatible is being built by the Zacatecas Mining Cluster. The facilities are under construction at the Parque Científico y Tecnológico Quantum in Zacatecas, a Complex that hosts enterprises and institutions focused in research and innovation.
  • The Mining Fund is to provide MX$41.96 M pesos (US$2 M) for 10 infrastructure projects in Minatitlan, Colima.
  • Government actions in Mexico generate uncertainty for mining enterprises. The elimination of the Mining Sub-Secretariat and the informal ban on the granting of mining concessions are the two more acute actions that send the wrong message to the mining industry. Another issue is constituted by the disputes between companies and the fiscal authority on taxation.
  • The mining sector has been at the forefront of mergers and acquisitions in Mexico, in the period of January to September, with 22 operations, according to Seale&Associates.
  • Mujeres WIM Mexico celebrated a virtual forum, entitled “Agenda and challenges for inclusion of women in the mining industry”.
  • Graciela Marquez, Economy Secretary played down the high expectations for lithium production in Mexico. She pointed out that Mexico does not produce any lithium at all in the present, and that the strongly hyped Bacanora Lithium’s project in Sonora hosts a large deposit in clays, which makes its extraction expensive. Her comments were a response to the voices claiming for the nationalization of the lithium industry by a leftist congressional group.

ON EXPLORATION

  • Minaurum Gold Inc. released drill results from the Promontorio vein zone at its Alamos Silver project in Sonora. “The holes were targeted below the historical Promontorio mine and demonstrate that high-grade silver mineralization continues at least 100 m below the deepest known workings”. Highlighted intervals comprise 1.75 m @ 144 gpt Ag, 0.51 gpt Au, 0.21% Cu, 4.1% Pb, 9.1% Zn; 7.60 m @ 266 gpt Ag, 0.27 gpt Au, 0.57% Cu, 1.6% Pb, 3.2% Zn (including 0.9 m @ 1,675 gpt Ag, 1.37 gpt Au, 4.15% Cu, 8.5% Pb, 11.3% Zn; 0.65 m @ 502 gpt Ag, 0.04 gpt Au, 1.82% Cu, 0.2% Pb, 0.1% Zn; 5.10 m @ 769 gpt Ag, 0.11 gpt Au, 0.76% Cu.
  • Canuc Resources Corp. released results from surface rock chip sampling at its San Javier project in Sonora. The results are strongly anomalous in silver (up to 1,222 gpt Ag), Au (up to 14.4 gpt Au) and copper (up to 0.95% Cu). The copper anomalous samples are from a breccia zone with magnetite matrix.
  • Tocvan Ventures Corp. announced the interpretation of a circular feature through geochemistry at its Pilar property in Sonora, same that might represent a breccia feeder pipe related to epithermal mineralization.
  • Global Li-Ion Graphite Corp. is to conduct a field due diligence on the property MVZ in Chihuahua, owned by Grupo Minero Diflor S.A. de C.V.. The 1,750 hectares property hosts 3 past producing silver-gold deposits, El Moro, La Virginia and La Zorra, within the larger El Pajarito property, also owned by Diflor.

ON MINING

  • First Majestic Silver Corp. released its third quarter 2020 production report, for a total of 5.2 M Oz AgEq. The production by mine can be seen in the following table.
  • Premier Gold Mines Ltd. presented production results for the third quarter 2020, including some figure from its Mexican operations. At the Mercedes mine in Sonora, 12,183 Oz Au and 49,985 Oz Ag were produced during the period.
  • Sierra Metals Inc. reported third quarter 2020 production results, including figures from its two mines in Mexico. At Bolívar, in Chihuahua, 410.5 K tonnes were processed at a daily rate of 4,691 tonnes (tpd) and a grade of 0.86% Cu, 18.2 gpt Ag, 0.32 gpt Au, recovering 86.1% Copper, 82.9% Ag, 64.2% Au to produce 6.73 M Lb Cu, 199 K Oz Ag, 2,740 Oz Au. At Cusi, in Chihuahua, 69.83 K tonnes were processed at 1,074 tpd and a grade of 168.6 gpt Ag, 0.18 gpt Au, 0.25% Pb, recovering 80.4% Ag, 43.6% Au, 79.3% Pb.
  • Fortuna Silver Mines Inc. reported production results for the third quarter 2020, including figures from its operations in Mexico. At the San José mine in Oaxaca 255.2 K tonnes were processed at a rate of 2,934 tpd, grading 254 gpt Ag, 1.52 gpt Au, recovering 91.9% Ag, 91.7% Au to produce 1.92 M Oz Ag, 11,425 Oz Au.
  • Excellon Resources Inc. released production results for the third quarter 2020 from its Platosa mine in Durango. During the period 21,877 tonnes were mined, with 22,612 tonnes processed @ 483 gpt Ag, 5.26% Pb, 6.81% Zn, recovering 93.0% Ag, 85.0% Pb, 80.9% Zn, to produce 326.9 K Oz Ag, 2.23 M Lb Pb, 2.75 M Lb Zn.
  • Telson Mining Corp. provided preliminary production results for the third quarter 2020. At the Campo Morado mine in Guerrero, 127.4 K tonnes were milled @ 1.07 gpt Au, 104 gpt Ag, 0.98% Pb, 4.07% Zn, 0.40% Cu, recovering 9% Au, 36% Ag, 27% Pb, 69% Zn, to produce a zinc concentrate with 46.3% Zn, 506 gpt Ag and a lead concentrate with 21.2% Pb, 558 gpt Ag, 2.87 gpt Au.
  • McEwen Mining Inc. reported production for the third quarter of 2020, including figures from its Mexican operations. During the period, El Gallo, located in Sinaloa and undergoing residual leaching, produced 1,900 Oz AuEq. “An updated feasibility study for the Fenix Project is being finalized, and we expect to release the results in Q4”.

ON FINANCING

  • Telson Mining Corp. informed “the Company has closed its debt settlement with Accendo Banco, S.A. Institucion de Banco Multiple (“Accendo”). Accendo has funded the payout of $659,758 of debt related to Tahuehueto mining project’s suppliers and accordingly, the Company has issued to Accendo 7,330,651 shares at a deemed price of $0.09 per share” (Campo Morado, Guerrero).
  • Silver Bull Resources Inc. intends to complete a private placement to raise up to US$1.85 M (Sierra Mojada, Coahuila).
  • Consolidated Zinc Ltd. informed the closing of the fully underwritten pro-rata non-renounceable entitlements offer to raise $2.04 M (Plomosas, Chihuahua).
  • Santacruz Silver Mining Ltd. closed the second an d final tranche of its non-brokered private placement, for aggregate gross proceeds of $2.36 M (Zimapan, Hidalgo)

ON RESOURCES AND DEVELOPMENT

  • Comet Resources Ltd.  released the results of the initial JORC compliant mineral resource estimate for its Santa Teresa project in Baja California. The inferred resource comprises 369 K tonnes @ 7.47 gpt Au, containing 88.6 K Oz Au. “Gold mineralisation at Santa Teresa is within parallel …… mesothermal lode-gold quartz vein systems. The veins range in width from a few cm to about three metres in width, and up to several hundred metres of known strike length. In general, the quartz veins are narrow, averaging less than 0.3 m in width, occupying parallel fractures with sheared walls ….. A second generation of veining followed a fracturing episode and was accompanied by epidote, hornblende and sparse mineralisation of galena, sphalerite, pyrite, marcasite, pyrrhotite, chalcopyrite, magnetite, specularite, and native gold”.
  • Prime Mining Corp. informed drilling is expected to commence in November at the Los Reyes project in Sinaloa. The company efforts are directed to upgrade 7.1 M tonnes of current inferred resource to the measured and indicated category, and adding more ounces to the resources.
  • Discovery Metals Corp. released results from four drill holes at the Todos Santos vein trend of its Cordero project in Chihuahua. Highlighted results comprise 25 m @ 92 gpt Ag, 0.14 gpt Au, 1.6% Pb, 3.1% Zn (including 3.4 m @ 421 gpt Au, 0.42 gpt Au, 8.0% Pb, 10.0% Zn); 49.7 m @ 38 gpt Ag, 0.09 gpt Au, 0.6% Pb, 1.9% Zn (including 2.0 m @ 532 gpt Ag, 0.38 gpt Au, 8.8% Pb, 8.1% Zn); 21.0 m @ 59 gpt Ag, 0.19 gpt Au, 0.9% Pb, 2.0% Zn (including 3.3 m @ 152 gpt Ag, 0.71 gpt Au, 2.2% Pb, 6.9% Zn); 6.9 m @ 133 gpt Ag, 0.10 gpt Au, 2.9% Pb, 5.4% Zn. “The Todos Santos vein trend, consisting of the Main Vein and Footwall Vein, has an interpreted southwest strike extent of at least 1.5 km based on historic underground workings and drilling, with veins dipping steeply to the northwest. The drill-confirmed portion of the Main Vein along the Todos Santos trend has a strike extent of 800 m and a down-dip extent of 300 m and is open along strike in both directions and at depth”.
  • GoGold Resources Inc. released results from drilling at the La Trini deposit in the Los Ricos North project in Jalisco. Some of the highlighted results comprise 6.3 m @ 1.42 gpt Au, 127 gpt Ag; 18.8 m @ 0.24 gpt Au, 30 gpt Ag; 24.0 m @ 0.80 gpt Au, 51 gpt Ag (including 6.0 m @ 2.78 gpt Au, 103 gpt Ag; 23.5 m @ 0.16 gpt Au, 97 gpt Ag; 31.0 m @ 1.50 gpt Au, 95 gpt Ag (including 11.2 m @ 3.67 gpt Au, 165 gpt Ag); 34.5 m @ 0.79 gpt Au, 79 gpt Ag (including 5.6 m @ 3.08 gpt Au, 179 gpt Ag; 25.7 m @ 0.21 gpt Au, 38 gpt Ag; 24.0 m @ 0.16 gpt Au, 39 gpt Ag.
  • Golden Tag Resources Ltd. plans to commence a 4,500 m drilling program at its San Diego project within the Velardeña district, in Durango. The exploration is to focus in the expansion of the known resource of 31.6 M Oz Ag in indicated resources and 83.8 M Oz Ag in inferred resources (TR 2013). The drilling is to cover the Trovador, 1849 target, Fernandez and Arroyo zones.

ON DEALS AND CORPORATE ISSUES

  • Silver Spruce Resources Inc. signed a letter of intent with Colibri Resource Corp. to acquire 50% interest in the Jackie Gold project in Sonora. Silver Spruce agreed to pay US$25 K and CAD$25 K in shares as the first property payment, and $US25 K and CAD$25 K in shares on the first year. Silver Spruce also concurs in paying 50% of due taxes and property rights agreements at the completion of the agreement. “Upon completion of these terms, Silver Spruce will hold a 50% interest in the Property and a Joint Venture will be formed to direct all exploration and drilling expenses and thereafter will be shared 50% by Silver Spruce and 50% by Colibri”.
  •  Tarachi Gold Corp. entered into a non-binding letter of intent (LOI) with Manto Resources S.A. de C.V. to acquire certain assets related to the Magistral del Oro tailing processing plant in Durango. The plant is a permitted 1,000 tpd tailings processing plant, with tailing resource estimates of 1.29 M tonnes @ 2.06 gpt Au. The deal involves 4 M shares of Tarachi, granting Manto a 15% NSR and reimburse Manto up to US$500 K for cash outlays, and Tarachi will satisfy “certain obligations” of Manto by paying US$1,65 M plus VAT and issuing a total of 1,685,916 Common Shares over a period of six months. Furthermore, on commencement of commercial production Tarachi will issue Manto 4 M shares; six months after continuous commercial production; 4 M shares, twelve months after commercial production 4 M shares and US$500 K. Upon Tarachi earning US$15 M in revenue, the company will pay Manto US$1 M.
  • Silver Bull Resources Inc. informed that “The Sierra Mojada Project remains under an option with South32 International Investment Holdings Pty Ltd and is currently under a force majeure due to the illegal blockade. As soon as we are able access the project, we expect to recommence the drilling program that was halted“.

ON SOCIAL RESPONSIBILITY

  • Minera Media Luna (Guerrero) informed on actions for betterment of the communities around the mining operations.
  • Pan American Silver informed on actions taken and support against the COVID-19 pandemic in the mining communities near its operations.
  • Industrias Peñoles received the sanitary safety award by the IMSS, on grounds of its actions fighting the COVID pandemic.
  • Minera Penmont is protecting the biodiversity in the Caborca region, in Sonora.
  • Industrias Peñoles donated five thousandtree saplings to the municipality of Gomez Palacio, Durango.

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

On the image below: The Cerro San Pedro open pit in 2010, San Luis Potosí. Picture by Jorge Cirett.

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

By Jorge Cirett

During the 38th week of the year (September 14th to September 20th, 2020), at least 38 press releases were announced by companies working in Mexico. To note, six companies posted exploration advances on their projects, fourteen companies posted news related to financing or share structure, and six on their projects development. Companies that raised funds include Southern Silver, Oroco Resource, Comet Resources, Consolidated Zinc, First Majestic, Defiance Silver, Argonaut Gold, GoGold Resources and Silver Dollar Resources. ON MEXICO ISSUES, Fortuna Silver tries to avoid an illegal blockade from occurring at its San José mine in Oaxaca. Mexico loses positions in the 2019 Fraser Institute ranking on mining regions. Cancham points out the Mexican mining environment is facing multiple challenges. Guanajuato intends to form a Mining Cluster. Fernando Alanís, Camimmex president clearly explained how mining concessions function in Mexico. ON EXPLORATION, in Sonora, Minaurum started the second phase drilling program at its Alamos Silver project. In Sinaloa, Brigadier Gold released surface sampling results from its Picachos property. In Zacatecas, Minera Alamos released results from historical drill holes at Cerro de Oro; Alien Metals released underground and surface sampling results from San Celso and Los Campos; Advance Gold informed on the drilling (providing no results) at Tabasqueña. In Guanajuato, VanGold Mining updated on exploration/development at El Pinguico.  ON MINING, Mexus Gold is nearing the completion of a ball mill gravity gold recovery system at its Santa Elena mine in Sonora. Starcore International reported results for the last quarter. Excellon Resources provided production results for August 2020 from its Platosa mine in Durango. ON FINANCING, nine companies made announcements regarding the opening or closing of financing rounds: Southern Silver ($456 K), Oroco Resource ($7.26 M), Comet Resources (a streaming facility, up to $20 M), Consolidated Zinc (A$2 M), First Majestic (C$78 M), Defiance Silver (C$10 M), Argonaut Gold (C$10 M), GoGold Resources (C$30 M) and Silver Dollar Resources ($10.5 M). Silver Bull is going for a reverse stock split of 8 to 1. Canuc Resources and Solaris Resources are now trading at the OTCQB Venture Market. ON RESOURCES AND DEVELOPMENT, Discovery Metals released results from drilling at its Cordero project in Chihuahua. Almaden Minerals resumes exploration at its Ixtaca project in Puebla. GR Silver Mining released drilling results from its Plomosas project in Sinaloa. Magna Gold completed a pre-feasibility report on its San Francisco project in Sonora.  Excellon recommenced underground and surface drilling at its Platosa mine, Durango. SSR Mining is extending a decline to drill, from the underground, high-grade portions of the mineral resource at Pitarrilla, Durango. ON DEALS AND CORPORATE ISSUES, Sonora Metals is changing name to Sonoro Gold. Barksdale Resources informed on title issues that have promoted some changes on how the deal is structured with Tusk Resources on the San Javier project in Sonora. Southern Silver informed it has closed the transaction to acquire Electrum’s 60% interest on Cerro Las Mintas project, Durango. Odyssey Marine Exploration filed the First Memorial on a case against Mexico, related to the lack of issuance of an environmental permit to mine a large off-shore phosphate resource. Excellon Resources informed on the results of litigation relating to a land surface purchase near its Platosa mine in Durango. ON SOCIAL RESPONSIBILITY. Fresnillo PLC, Fortuna Silver and Frisco informed on sustainability, health, safety, environment, social and governance programs.

ON MEXICO ISSUES

  • Compañía Minera Cuzcatlán (Fortuna Mines), called for the civil organizations promoting an illegal blockage of the San José mine in Oaxaca to reconsider its program. The blockage is being called to pressure the authorities on the delivery of resources, an issue completely unrelated to the mining company.
  • In 2019 Mexico fell nine positions, according to the Fraser’s Institute. Mexico’s shine to attract mining investment is getting dull with the lack of confidence and certitude derived of the president’s declarations on the review of mining concessions and the recent disappearance of the Mining Sub Secretary. The federal government has been clear, under his tenure no mining concessions are to be issued. The president has stated that up to 40% of the country ground has been under mining concessions, and that amount should suffice (for mining companies) for thousands of years.
  • Armando Ortega, president of the Mining Task Force of the Cámara de Comercio de Canadá en México (Cancham) stated that the mining environment in Mexico is not propitious because political signals of ideological nature are not favorable to investment, and some measures announced by the government are worrisome. Among the factors supporting its points are: initiatives to forbid open pit mining; initiatives to enlarge natural protected areas, encroaching to areas of active mining; the initiative to change the law on water use, changing its regime from concession to license; the stated fact by the president to not to grant a single mining concession during his tenure; the disappearance of the Mining Sub Secretary; the extortion by unions to companies, exemplified by the tricky wining by Napoleón Gómez Urrutia of the collective contract at is Cosalá mine complex in Sinaloa.  
  • According to a Camimex post, projects that are coming into production include an expansion at Los Filos, Guerrero (Equinox Gold); Ixtaca, Puebla (Almaden Minerals); Camino Rojo, Zacatecas (Orla Mining); Las Chispas, Sonora (SilverCrest Metals); Santana in Sonora, La Fortuna in Durango and Cerro de Oro in Zacatecas (Minera Alamos).  
  • Guanajuato announced its intention to conform a Mining Cluster.
  • Fernando Alanís, Camimex (Cámara Minera de México) president, explained some facts on how mining concessions function in Mexico. According to the constitution everything under the surface is property of the Nation, hence the permit needed to extract gas, oil, water or minerals by individuals or companies, permit that is precisely a concession. In mining the concession is a permit to explore and mine an ore deposit if found, it provides no rights for surface rights, reason for which an agreement has to be negotiated with the surface owner to access the land. He stressed that having a mining concession is no guarantee of finding an ore deposit. To keep a mining concession, the concessionaire has to pay every six months a due per hectare, due that increases with the age of the concession, to avoid speculative land grabs; and also the concessionaire has to comply with a minimum yearly investment that also increases with the age of the concession, again to avoid speculation. According to the DGM (Dirección General de Minas) 20.7 M hectares are concessioned in México, out of almost 200 M hectares in the country, meaning about 10.35% of the country is concessioned, of which only 1 M hectares include a project in exploitation. The government granting of mining concessions is the more efficient way to exploit the natural resources, letting others run the risks and expensive investments of exploration. The government receives the due payments, and in case of an ore body being found and a mine built, receive taxes for its operation. Mining is the economic activity that has the steepest rate of taxes and dues, which add up to 55% on the income of mining firms.

ON EXPLORATION

  • Brigadier Gold Ltd. released sampling results from two vein systems at its Picachos property in Sinaloa. Highlighted results comprise 7 m @ 160 gpt Ag, 0.6 gpt Au; 3 m @ 205 gpt Ag, 0.2 gpt Au; 0.5 m @ 356 gpt Ag, 6.6 gpt Au at the Garabato vein system, and 1.6 m @ 1.9 gpt Au, 98 gpt Ag, 0.6% Cu, 3.7% Pb, 1.5% Zn; 1.0 m @ 21.3 gpt Au, 5 gpt Ag, 3.2% Pb, 0.8% Zn; 0.2 m @ 56.7 gpt Au, 288 gpt Ag, 1.9% Cu, 5.9% Pb, 1.3% Zn at El Pino. The Garabato veins are coincident with a 20 ha soil anomaly that returned up to 36 ppm Ag, 366 ppm Cu, 1,049 ppm Pb, 1,184 ppm Zn. Three basins draining the El Pino vein system show stream sediment anomalies of up to 1.72 ppm Au, 0.9 ppm Ag, 597 ppm Pb and 329 ppm Zn.
  • Minaurum Gold Inc. announced the start of a 20,000 metre Phase II drilling program at its Alamos Silver project in Sonora. The program will commence with one rig offsetting an intercept of 8.25 m @ 1,760 gpt Ag on the Europa-Guadalupe veins, while a second rig will test targets at Promontorio, where recently acquired historical data revealed intercepts of up to 12.2 m @ 710 gpt Ag (Note.- Take a look to the press release, it is worth it).
  • Minera Alamos Inc. released additional historic drill data on the Cerro de Oro project in Zacatecas. The reverse circulation holes were drilled by a private operator in 2017-2018, to refine the previous drilling by Noranda in the 1990’s. Some of the highlighted results comprise 48 m 0.70 gpt Au; 112 m @ 0.42 gpt Au, 40 m @ 0.51 gpt Au; 64 m @ 0.38 gpt Au; 42 m @ 0.42 gpt Au; 100 m @ 0.42 gpt Au; 54 m @ 0.76 gpt Au; 102 m @ 0.38 gpt Au; 72 m @ 0.47 gpt Au; 56 m @ 0.47 gpt Au; 66 m @ 0.33 gpt Au;  96 m @ 1.10 gpt Au; 42 m @ 0.50 gpt Au.
  • Alien Metals Inc. informed on underground and surface sampling results from its San Celso and Los Campos projects in Zacatecas. At San Celso, underground sampling confirmed 2006 sample results, like 0.9 m @ 477 gpt Ag (0.5 m @ 422 gpt Ag on previous sample) and 1.4 m @ 225 gpt Ag (1.6 m @ 335 gpt Ag on previous sample). At Los Campos, dump sampling returned up to 0.3 gpt Au, 254 gpt Ag, 0.12% Pb, 0.07% Zn. The Nueva Andromeda claim, adjacent to San Celso, has been optioned.
  • VanGold Mining Corp. updated on exploration at its El Pinguico project in Guanajuato. Approximately 40 m have been sampled on a recently cleared section of the shaft, a 3D model is being generated, sampling for XRF sampling are being collected on #4 adit, and trenching of additional surface exposures and clearing of the #7 adit are being performed.
  • Advance Gold Corp. reported on the drilling done at its Tabasqueña project in Zacatecas. “Of the four holes drilled to date into the 3500-metre continuous IP chargeability anomaly, drill hole AGT-16 has encountered the best mineralization, including a 10.7 metre sulphide zone. Mineralization in this hole has zones of semi-massive pyrite, containing 15 to 30% pyrite, together with up to 3% sphalerite and some galena (core photos shown below and on company website). The first three holes intersected stacked lenses of disseminated sulphides and are around 3000 metres to the south of AGT-16”.

ON MINING

  • Mexus Gold US. is nearing the completion and test running of its high grade ball mill gravity gold recovery system at its Santa Elena mine in Sonora (not to mistake with First Majestic’s Santa Elena mine, also in Sonora). The company will mill material from a quartz vein with a 10 gpt Au cutoff, and recover the gold through the gravity system, while lower grade ore continues to be placed on the heap leach.
  • Starcore International Mines Ltd. Reported results of the first quarter ended July 31, 2020. Production during the period at its San Martin mine in Queretaro included the milling of 59.1 K tonnes @ 1.70 gpt Au, 29.2 gpt Ag, recovering 88.8% Au, 56.5% Ag, to produce 2.9 K Oz Au, 32.5 K Oz Ag.
  • Excellon Resources Inc. provided August 2020 production results from its Platosa mine in Durango. During the month 7.6 K tonnes were mined, 8.5 K tonnes processed @ 451 gpt Ag, 4.95% Pb, 6.76% Zn, recovering 86.8% Ag, 78.8% Pb, 78.9% Zn, to produce 106.7 K Oz Ag, 729.1 K Lb Pb, 997.2 K Lb Zn.

ON FINANCING

  • Silver Bull Resources. management approved a 1-for-8 reverse stock split of the of the company’s issued and outstanding common stock (Sierra Mojada, Coahuila).
  • Southern Silver Exploration Corp. closed the recently announced non-brokered private placement for gross proceeds of $456 K (Cerro Las Minitas, Durango).
  • Oroco Resource Corp. closed a non-brokered private placement for gross proceeds of $7.26 M (Santo Tomás, Sinaloa).
  • Canuc Resources Corp. announced it is now trading its shares on the OTCQB Venture Market (San Javier, Sonora).
  • Comet Resources Ltd. executed a binding agreement with Raptor Capital International Ltd.for the provision of a streaming facility to provide a minimum of US$6m and up to US$20m in funding for development of the Santa Teresa High Grade Gold Project in Baja California”.
  • Southern Silver Exploration Corp. informed on private placements recently closed. A brokered offering for gross proceeds of C$10 M followed by a non-brokered offering for gross proceeds of C$4 M and a non-brokered private placement for gross proceeds of $456 K (Cerro Las Minitas, Durango).
  • Consolidated Zinc Ltd. Intends to undertake “a fully underwritten non-renounceable pro rata entitlement offer on the basis of three (3) new fully paid ordinary shares (“New Shares”) for every eleven (11) Shares held on 24 September 2020”. The intention is to raise approximately A$2 M (Plomosas, Chihuahua).
  • First Majestic Silver Corp. closed its previously announced bought deal with Eric Sprott for gross proceeds of CDN$78 M (Santa Elena, Sonora; San Dimas, Durango).
  • Solaris Resources Inc. announced its common shares have been approved to trade on the OTCQB Venture Market, effective September 17, 2020 (La Verde, Michoacan).
  • Defiance Silver Corp. closed the previously announced brokered private placement for gross proceeds totaling C$10 M (Veta Grande, Zacatecas).
  • Argonaut Gold Inc. entered into an agreement with a syndicate of underwriters with a bought deal private placement financing for aggregate gross proceeds of C$10 M (La Colorada, Sonora).
  • GoGold Resources Inc. closed its previously announced bought deal offering for gross proceeds of C$30 M (Los Ricos South, Los Ricos North, Jalisco).
  • Silver Dollar Resources Inc. completed its previously announced non-brokered private placement to raise $10.5 M in gross proceeds (La Joya, Durango).
  • Silver Viper Minerals Corp. announced that it has elected to accelerate the expiry date of the common share purchase warrants issued on September 24, 2019, to the new date of October 8, 2020 (La Virginia, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Discovery Metals Corp. released results from four diamond drill holes targeting bulk-tonnage mineralization in the South Corridor at its Cordero project in Chihuahua. Highlighted intercepts comprise 401.7 m @ 49 gpt Ag, 0.07 gpt Au, 1.0% Pb, 1.1% Zn ( including 30.3 m @ 57 gpt Ag, 0.10 gpt Au, 0.8% Pb, 2.2% Zn; 112.3 m @ 96 gpt Ag, 0.08 gpt Au, 2.0% Pb, 1.8% Zn; 44.2 m @ 84 gpt Ag, 0.10 gpt Au, 1.8% Pb, 2.0% Zn); 5.1 m @ 231 gpt Ag, 0.21 gpt Au, 2.0% Pb, 2.6% Zn; 15.7 m @ 111 gpt Ag, 0.06 gpt Au, 1.7% Pb, 0.2% Zn.
  • Almaden Minerals Ltd. announced its intention to resume exploration in the area of the Ixtaca project in Puebla. “This program is starting with a desktop review of exploration data previously gathered, which is expected to lead to further field work in the near-term which may include mapping, surface sampling, geochemical stream silt and soil sampling, and geophysics. These data will be used to design a future drill program”.
  • GR Silver Mining Ltd. Released results from its surface core drilling program at Plomosas, Sinaloa. The drilling completed to date has delineated a 700 m mineralized zone with multiple veins including a low angle Pb-Zn-Ag rich hydrothermal breccia and high angle low sulfidation vein and stockwork systems. Highlighted true width intercepts comprise 6.0 m @ 85 gpt Ag, 0.4 gpt Ag, 1.1% Pb, 0.6% Zn (including 2.5 m @ 172 gpt Ag, 0.9 gpt Au, 2.7% Pb, 1.4% Zn); 22.3 m @ 48 gpt Ag, 0.1 gpt Au, 0.3% Pb, 0.6% Zn.
  • Magna Gold Corp. released the results of its recently completed pre-feasibility report on its San Francisco mine in Sonora. The report presents a base case at $1,450 per Oz Au with an NPV (Net present Value) of $80 M at 5% discount rate, producing 69 K Oz Au per year from 2021 to 2027 at an average all-in sustaining cost cash cost of $1,204 per Au Oz and no major capital required for resuming mining. Mineral reserves stand at 47.6 M tonnes @ 0.495 gpt Au, containing 758 K Oz Au and mineral resources (including mineral reserves) comprise 99.7 M tonnes @ 0.446 gpt Au, containing 1.43 M Oz Au. The inferred resources category includes 11.4 M tonnes @ 0.467 gpt Au, containing 171 K Oz Au.
  • Excellon Resources Inc. “has recommenced underground and surface drilling at the Platosa Mine and broader Platosa Property, respectively. Underground exploration is focused on expanding and further defining known mineralization. Surface exploration is focused on near mine targets around the Platosa deposit and the Jaboncillo and PDN targets north of the mine. Jaboncillo, 11 kilometres northwest of the Platosa Mine, is a Platosa-style target with a 4 x 4 kilometre alteration footprint, multiple times the size of the Platosa footprint, where the Company intersected near-surface gossans in 2019 drilling. PDN, two kilometres north of the Platosa Mine, is a skarn-style geophysical target that may be associated with the skarn discovery made in 2012 at Rincón del Caído”.
  • SSR Mining Inc. informed it is planning to spend $5 M in 2020 at Pitarrilla, Durango. The investment is part of a “program to extend an existing decline to provide drill access to the underground Mineral Resources. An improved geological model from work completed in 2019 indicates strong potential to better define known, high-grade mineralized veining associated with steeply dipping rhyolite dyke contacts. Extending the underground ramp provides access for tighter spaced drilling at better orientations to test the rhyolite dykes and veins for continuity. If infill drilling confirms the continuity of high-grade mineralized structures, there would be potential to enhance the grades of existing Mineral Resources“.

ON DEALS AND CORPORATE ISSUES

  • Sonoro Metals Corp. changes name to Sonoro Gold Corp. on September 9, 2020 (Cerro Caliche, Sonora).   
  • Barksdale Resources Corp. informed thatFollowing a detailed due diligence campaign, the Company identified certain title issues with respect to three of the twelve mining concessions comprising approximately 307.46 hectares of the total lands covered under the option. Tusk Exploration Ltd (“Tusk”) is in the process of rectifying these title issues and expects the process to be completed in 2021. Until the title issues have been rectified, Barksdale and Tusk have agreed to defer 35% of the Year 1 and Year 2 option cash and share payments” (San Javier, Sonora).
  • Southern Silver Exploration Corp. closed the transaction with Electrum Global Holdings L.P. to acquire Electrum’s 60% indirect working interest in the Cerro Las Minitas project in Durango. Southern Silver must pay Electrum US$15 M in a combination of cash and common shares, of which US$5 M and 2.34 M shares and a credit of C$1.35 M deposit have been paid. Remaining are US$2 M and shares equal to US$2 M to be paid on March of 2021 and US$2 M and shares equal to US$2 M to be paid on September of 2021.
  • Odyssey Marine Exploration Inc. filed “the First Memorial in the case brought against Mexico under the North American Free Trade Agreement (NAFTA) on its behalf and on behalf of subsidiary Exploraciones Oceánicas (ExO), alleging that Mexico wrongfully denied environmental approval of the ExO Phosphate project in breach of NAFTA ….. Odyssey seeks damages of more than $2.3 billion including interest from April 2016 to the date of the First Memorial’s submission”.
  • Excellon Resources Inc. informed an appeal on the acquisition of 295 hectares north of the Platosa mine (in Durango) was denied by an appeals court in Mexico. “The Company does not consider the land material to its mining operation or exploration activities. The decision does not impact Excellon’s mineral rights and the Company does not expect it to have any impact on its operations”.

ON SOCIAL RESPONSIBILITY

  • Fortuna Silver Mines (San José mine in Oaxaca) has added a new sustainability section on its website, where the company´s sustainability approach is expressed, as well as its environmental, social, and governance (ESG) management and performance.
  • Great Panther Mining Ltd. announced the publication of its first sustainability report highlighting the progress, initiatives and commitments in the areas of health, safety, environmental, social, and governance management.
  • Fresnillo PLC, Minera San Xavier and Frisco informed on health and community programs on the areas of their respective projects.

Content like what you have just read can be seen at https://gambusinoprospector.com/ and at LinkedIn’s Mexico Mineral Exploration Group. On the image below: Opaline silica layer in the vadose zone of a low sulfidation system in Queretaro. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the Fourth Week of June, 2020

186

By Jorge Cirett

During the 26th week of the year (June 22nd to June 28th, 2020), at least 30 press releases were announced by companies working in Mexico. Notably, 6 of those were exploration updates and 6 more related to financing. ON MEXICO ISSUES, Mining and  Automotive industries are to operate even if there is a resurgence of Coronavirus cases. The Mining Fund Technical Committee approved US$11.6 M for 98 projects in 11 States. Canadian Mining companies are under pressure to pay disputed taxes. AMLO rejected the idea of nationalizing the lithium industry…. but declares the conditions on which those conditions are granted have to be reviewed (Keep in mind what’s been happening in the electricity industry).  ON EXPLORATION, in Sonora, Ridgestone completed a maiden drill program on its Rebeico project; Tarachi Gold acquired the Tarachi property in Sonora; Aztec Minerals identified multiple chargeability anomalies at its Cervantes project; Tocvan Ventures released strong results of its soil program on the Pilar project. Vizsla Resources released high grade drilling results from its Panuco project. GoGold Resources released results from three more drill holes at its Los Ricos South project.  ON MINING, VanGold Mining plans to clearing the shaft at the Pinguico property to provide access for sampling and eventually infill extraction. ON FINANCING, Southern Silver is eyeing a private placement to raise up to C$7 M. Aura Minerals authorized a dividend’s policy. First Mexican Gold granted 2.5 M options to directors, officers and consultants. Orex Minerals raised $989 K on the closing of the first tranche of its non-brokered private placement. Apollo Gold aims to raise up to $5 M. McEwen Mining refinanced its $50 M senior secured term loan facility.   ON RESOURCES AND DEVELOPMENT, GR Silver Mining released drill results from historic holes at its Plomosas project in Sinaloa. Magna Gold filed a technical report on its San Francisco mine, in Sonora. SilverCrest Metals updated on the development of the Las Chispas project under the Coronavirus emergency. ON DEALS AND CORPORATE ISSUES, Argonaut Gold and Alio Gold announced that COFECE, the last bureaucratic hurdle, has cleared the transaction on its merger. Riverside Resources disclosed additional funding from BHP on its generative copper exploration program in Sonora. Southern Silver Exploration signed an agreement to acquire Electrum Global Holdings’s 60% share on the Cerro Las Minitas project in Durango. Candente Gold mobilized a team for the due diligence on the El Dorado project and the SDA mill in Nayarit. Hochschild optioned the Los Cuarenta property in Sonora from Riverside Resources. Apollo Gold Corp. entered into a LOI to option the “Jalisco Group of properties” from First Majestic. ON SOCIAL RESPONSIBILITY. Peñasquito donated medical supplies to the IMSS Hospital Número 12 in Concepción del Oro, Zacatecas. Esperanza Silver repaired the water supply system in San Agustín Tetlama, Morelos.

ON MEXICO ISSUES

  • Mining and the Automotive industries to operate, even if there is a resurgence (hypothetical) of Coronavirus cases. Graciela Márquez, Economy Secretary, explained these industries are essential, and are to continue activities under any color of the health lights system.
  • The Mining Fund Technical Committee approved the funding of 98 projects for US$11.6 M ($260.9 M pesos) for pavement laying, sidewalk construction and water supply nets. The funds are to be distributed as follows: Sonora US$6.12 M, Zacatecas US$2.47 M, Durango US$1.08 M, Coahuila US$0.93 M, Chihuahua US$0.71 M, San Luis Potosí US$0.21 M, Aguascalientes US$90 K, Jalisco US$54 K, Michoacán US$45 K, Oaxaca US$32 K and Hidalgo US$14 K.
  • Canadian Mining companies are under pressure to pay disputed taxes to the Mexican government, according to University academics on the matter.
  • The president of Mexico, Andres Manuel Lopez Obrador, rejected the idea of nationalizing the lithium exploitation in the country. His comment comes regarding the ideas expressed by Victor Manuel Toledo, Environment Secretary and staunch opponent of mining. According to the president, there is already a legal framework for contracts and concessions by the government for the exploitation of mineral resources. However, he also stressed that the conditions on which those concessions are granted have to be reviewed.

ON EXPLORATION

  • Ridgestone Mining Inc. completed the maiden drill program at its Rebeico project in Sonora. Under the program 1,674 m were drilled in ten holes. Most of the holes tested the geometry of gold-copper mineralization on the New Year Zone. Core samples are being submitted to the lab.
  • Vizsla Resources Corp. released drilling results from two holes on the Napoleon vein corridor at the Panuco project in Sinaloa. Highlighted core-length intercepts comprise: 8.2 m @ 739 gpt Ag, 11.06 gpt Au; 2.0 m @ 1,527 gpt Ag, 24.9 gpt Au on one hole; 2.5 m @ 454 gpt Ag, 9.20 gpt Au; 5.1 m @ 309 gpt Ag, 8.00 gpt Au, 2.22% Pb, 4.75 % Zn; 1.8 m @ 186 gpt Ag, 15.63 gpt Au, 1.12% Pb, 7.73% Zn in the second hole. True widths are estimated at between 46-66% of down hole lengths.
  • GoGold Resources Inc. informed on the results from three diamond drill holes at the Los Ricos South project. The holes drilled at the San Juan, Rascadero and East veins returned core length intervals of 27 m @ 0.09 gpt Au, 28 gpt Ag (including 4.0 m @ 0.45 gpt Au, 89 gpt Ag); 39.0 m @ 0.45 gpt Au, 117 gpt Ag (including 11.0 m @ 1.40 gpt Au, 319 gpt Ag); 3.2 m @ 0.15 gpt Au, 25 gpt Ag.
  • Tarachi Gold Corp. commenced fieldwork at its Tarachi project in Sonora. Tarachi’s geological crews have begun a two-week field program of geological mapping and rock sampling of known mineral occurrences to verify historical work programs. Historical work includes drill intercepts of 5.0 m @ 34.5 gtp Au, 3.0 m @ 24.3 gpt Au; 1.32 m @ 110 gpt Au. The 2,560 ha project includes the San Javier, Pretoria, Chivitas, Jabali, Juliana, Texana and Tarachi concessions.
  • Aztec Minerals Corp. identified multiple chargeability anomalies on a 3-dimensional IP-Resisitivity survey completed last year at its Cervantes property in Sonora. Each of the 6 porphyry prospects along the corridor exhibit strong porphyry alteration and Au (Cu) mineralization, while none of the Jacobo, Purisima West, Purisima East and Estrella targets have ever been drill-tested .
  • Tocvan Ventures Corp. released results from the soil sampling survey undertaken at its Pilar property in Sonora. The results include values of up to 8 gpt Au and 317 gpt Ag, and collectively have highlighted the East Zone as a new focus area..

ON MINING

  • VanGold Mining Corp. plans to begin clearing the El Pinguico shaft at its El Pinguico project in Guanajuato. The mucking of the shaft will allow the company to sample the lower part of the old workings infill, which on surface averaged 1.75 gpt Au, 183 gpt Ag. It will also allow the inspection of underground drifts for extracting the mineralized material, and check on past producing high-grade stopes.

ON FINANCING

  • Southern Silver Exploration Corp. plans a fully marketed private placement aiming to gross proceeds for a minimum of C$7 M. The company entered into a definitive agreement with Electrum Global Holdings L.P. to acquire Electrum’s 60% ownership interest in Southern Silver Holdings Ltd. for current and future cash and share payments totaling US$15.0 M (Cerro Las Minitas, Durango).
  • Aura Minerals Inc. announced its board of directors approved a dividend policy (Aranzazu, Zacatecas).
  • First Mexican Gold Corp. granted 2.5 M options to directors, officers and consultants (Hilda, Sonora).
  • Orex Minerals Inc. closed the first tranche of its non-brokered private placement, for gross proceeds of $989 K (Sandra-previously Sandra Escobar-, Durango).
  • Apollo Gold Corp. is conducting a non-brokered placement aiming to raise up to $5 M in gross proceeds (Eztzatlan, Jalisco).
  • Mc Ewen Mining Inc. announced the refinancing of its $50 M senior secured term loan facility. “As part of the refinancing, Sprott Private Resource Lending II (Collector), LP has replaced Royal Capital Management Corp. as a lender and the administrative agent for the Term Loan; and Evanachan Limited, a corporation wholly-owned by Rob McEwen, remains a lender….. the maturity date of the Term Loan has been extended by two years to August 31, 2023” (El Gallo, Sinaloa).

ON RESOURCES AND DEVELOPMENT

  • GR Silver Mining Ltd. Released drill results from historic holes at its Plomosas project in Sinaloa. These high-grade silver intercepts are outside the previously mined Pb-Zn-Ag-Au ore of the Plomosas mine area. Some of the highlighted true width (tw) intercepts comprise: 14.6 m @ 46 gpt Ag, 1.0 gpt Au, 1.7% Pb, 2.2% Zn; 5.4 m @ 326 gpt Ag, 1.9 gpt Au, 0.7% Pb, 1.2% Zn (including 1.9 m @ 900 gpt Ag, 1.9 gpt Au, 1.9% Pb, 3.2% Zn); 2.1 m @ 349 gpt Ag, 0.4 gpt Au, 2.3% Pb, 1.3% Zn); 2.7 m @ 1,469 gpt Ag, 0.5 gpt Au, 2.2% Pb, 3.2% Zn; 17.4 m @ 4 gpt Ag, 3.6 gpt Au; 2.2 m @ 398 gpt Ag, 0.3% Pb, 0.7% Zn; 32.8 m @ 32 gpt Ag, 0.9 gpt Au; 9.8 m @ 28 gpt Ag, 0.7 gpt Au, 4.2% Pb, 0.9% Zn; 13 m @ 13 gpt Ag, 2.8 gpt Au, 0.5% Pb, 1.4% Zn; 11.7 m @ 8 gpt Ag, 1.7 gpt Au, 0.4% Pb, 0.7% Zn.
  • Magna Gold Corp. filed an independent technical report for the San Francisco Gold project in Sonora.
  • SilverCrest Metals Inc. continues activities at its Las Chispas project in Sonora. A fully confined camp for 160 persons has been built at the site. All personnel is tested for COVID-19, and transported to the project once the negative results are received. Currently eight rigs are operating on the H2 program focusing on the high-grade resource expansion at the veins Babicanora (SE, NE, deep), Babi Sur (SE to depth), Babi Vista (all directions), Babicanora Norte (SE, NW, deep), Las Chispas (SE to depth), Giovanni (SE to depth), William Tell (all directions), and Varela (all directions). “Underground development has resumed, with a target of 500 metres per month by Q3, 2020, under confined camp conditions. The first ventilation raise in the Babicanora area has been completed. “. The feasibility study is progressing.

 

ON DEALS AND CORPORATE ISSUES

  • Argonaut Gold Inc. and Alio Gold Inc. announced the receipt of the clearance decision from the Comisión Federal de Competencia Económica (COFECE) with respect to the pending merger between Argonaut Gold and Alio Gold. This approval “was the final government agency approval required before completing the merger, which is anticipated to occur between June 29, 2020 and July 3, 2020” (El Castillo, Durango; Ana Paula, Guerrero).
  • Riverside Resources Inc. announced the continuation of the exploration agreement with BHP Exploration Chile SpA for the funding of generative copper exploration in the copper producing belt of Sonora. “BHP will be providing Riverside with US$720,000 to commence the first half of the second year of the Program to continue to grow the portfolio of copper projects which is an increase of US$220,000 from the initial plan ”.
  • Southern Silver Exploration Corp. entered into a definitive agreement with Electrum Global Holdings L.P. to acquire Electrum’s 60% ownership interest in Southern Silver Holdings Ltd. for current and future cash and share payments totaling US$15.0 M to gain 100% interest in the Cerro Las Minitas project, in Durango. Payments include US$5M in cash and US$2 M in shares by September 2020 (less credit for deposit of C$1.35 M paid in June 2020), US$2 M in cash and US$2 M in shares six months from closing and US$2 M in cash and US$2 M in shares one year from closing Cerro Las Minitas, Durango).
  • Candente Gold Corp. mobilized a team for the due diligence process on its acquisition process from Magellan Acquisition Corp. of the San Dieguito de Arriba processing plant and the El Dorado project in Nayarit. The Eldorado epithermal vein trend has been traced for 3.5 km along strike, hosting multiple mineralized zones, including distinct high-grade veins and lower grade bulk tonnage stockwork zones extending over tens of meters in width in both the hanging wall and footwall of the vein system.
  • Riverside Resources Inc. entered into a definitive option agreement with Minera Hochschild de Mexico S.A. de C.V. for Riverside’s Los Cuarentas project in Sonora. Hochschild is to pay Riverside US$90 K on the signing of the agreement and invest US$8 M over four years in the property to earn 51%, upon which it can elect to earn an additional 24% by spending a further $3 M and producing a feasibility study. Upon completing the second phase earn-in, Riverside will have the option to sell its interest for US$20 M, while retaining a 1% NSR.
  • Apollo Gold Corp. entered into a non-binding letter of intent (LOI) with First Majestic Silver Corp. for a three-year earn-in option to acquire First Majestic’s “Jalisco Group of Properties”. Under the terms of the agreement Apollo will pay $250 K and issue 4.29 M shares and 1.5 M warrants on closing of the definitive agreement. A further $200 K and 1 M shares a year from closing and $300 K and 1 M shares two years from the closing date. Apollo commits to spend at least $1.25 M on the properties within 36 months of closing. The properties comprise 5,240 ha of mining concessions which include the Etzatlan, Ampora, La Calabaza, Piedra and Bola mines.

ON SOCIAL RESPONSIBILITY

  • Peñasquito donated medical supplies in the fight against Coronavirus to the IMSS Rural Hospital number 12 in Concepción del Oro, Zacatecas.
  • Esperanza Silver de Mexico repaired the water supply equipment supplying the 2,500 inhabitants of San Agustín de Tetlama community in Morelos.

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

On the image below: Epithermal quartz-graphite vein, Hermosillo District, Sonora, Sonora. Picture by Jorge Cirett.

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The Mining and Exploration News in Mexico: Highlights on the Fourth Week of May, 2020

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By Jorge Cirett

During the 22nd week of the year (May 24th to May 31st, 2020), at least 36 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, Francisco Quiroga, subsecretary of mining had a very active week by reviewing personally the health protocols put in place by mining companies in several states, as well as being present on the installation of regional mining committees in a handful of states, before the full re-start of mining operations allowed by the government. BNamericas presented a list of 24 mining projects going ahead in Mexico from 2020 to 2026, with a capital investment of US$7,450 M. Mining companies scrambled on the restart of operations permitted by the government with the inclusion of the industry in the category of essential activities that can operate during the Coronavirus emergency. ON EXPLORATION, in Sonora, Ridgestone Mining resumed activities at its Rebeico project. In Chihuahua, Kootenay Silver released results from drilling at its Columba project; Mammoth Resources announced Centerra is returning for exploration work at its Tenoriba project. In Nayarit, Candente Gold is to rehabilitate underground workings to advance its El Dorado project. In Zacatecas, Defiance Silver delineated several targets at the San Acacio property. ON MINING, Sierra Metals, Impact Silver, Mexus Gold, Fortuna Silver, Gold Resource, Endeavour Silver and Aura Minerals announced the recommencement of activities, following the government easing of restrictions on mining. Impact Silver and Discovery Metals reported first quarter 2020 results. GR Silver Mining is postponing the filing of first quarter 2020 results, under the blanket relief granted by the regulatory authorities in Canada. ON FINANCING, in a pretty busy week, 16 companies made announcements related to their financing.  Canasil Resources granted 1.75 M options. Orex Minerals intends to raise up $2 M. Silver Tiger Metals is now trading on the OTCQB quotation system in the US. Vangold Mining accelerated a warrant bonus program in connection with its 2019 private placement. Equinox Gold saw warrants exercised for $145 M. Southern Silver Exploration extended the expiry date of some warrants for two years. Ridgestone Mining is now listed in the Frankfurt Stock Exchange. Aztec Mining engaged a Swiss investor relations firm for European exposure. Vizsla Resources is pursuing a financing round for C$4 M. DynaResources closed a financing agreement for $3.9 M. Minaurum Gold closed its private placement grossing $5 M. Telson closed the second tranche of its private placement for $196.6 K. Golden Tag Announced a non-brokered private placement for up to $1.12 M. Solaris Resources raised C$20 M. Mammoth Resources announced a private placement for up to $131 K. Consolidated Zn intends to raise up to $1.73 M.   ON RESOURCES AND DEVELOPMENT, Mexican Gold Mining is working on the PEA for its Las Minas project in Veracruz. Golden Minerals filed the PEA on Rodeo, Durango. Bacanora Lithium updated on activities to further advance its Sonora Lithium project. Discovery Metals has completed 15,000 m of its 30,000 m phase 1 drill program at its Cordero project in Chihuahua. ON DEALS AND CORPORATE ISSUES, Mithril completed the acquisition of Sun Minerals, obtaining thus the Copalquin project in Durango. Candente Gold amended the memorandum of understanding to acquire the El Dorado property and the SDA mill in Nayarit. Sonora Metals published and filed a new version of the Cerro Caliche development report, as requested by the British Columbia Securities Commission. ON SOCIAL RESPONSIBILITY. Minera Peña Colorada, Grupo Mexico, Fresnillo PLC, Minera Real Bonanza and the mining industry in Sonora  informed on donations and work realized to aid communities, mainly on subjects related to the Coronavirus emergency, like medical supplies and equipment, comprising also a large array of investments and measures that benefit the mining communities.

ON MEXICO ISSUES

  • Francisco Quiroga, subsecretary of Mining, personally verified the application of safety protocols to re-start operations in mines. Quiroga visited Agnico Eagle’s Pinos Altos, Grupo Mexico’s Santa Barbara and Frisco’s Concheño mines in Chihuahua. He will also review protocols in Durango, Zacatecas and Coahuila.
  • The fourth virtual personnel hiring session was held by La Cantera Desarrollos Mineros in Zacatecas.
  • The silver price has seen its strongest monthly growth in almost seven years. Prices have reached up to $17.69 per ounce.
  • The Regional Committee for the Development of Mining Zones was constituted in Durango.
  • Mining Companies are to re-start operations on June 1, 2020. Dozens of mining companies prepare to re-commence mining and processing activities, reviewing its health and work protocols.
  • The Regional Committee for the Development of Mining Zones was installed in Zacatecas. The governor Alejandro Tello, the Camimex president, Fernando Alanís and the Mining subsecretary Francisco Quiroga were in the event that also saw the presence of representatives of Fresnillo PLC, Industrias Peñoles, Minera Frsico, Capstone Gold, Excellon Resources, Newmont, Aura Minerals, Arian Silver, Grupo Mexico, Impulsora Minera Santacruz, First Majestic, Grupo Minera Candelaria, Minera Camino Rojo, and Minas de San Nicolás.
  • The subsecretary of Mining Francisco Quiroga reviewed the sanitary procedures of Minera El Roble.
  • Peñasquito restarted operations in Zacatecas, after the review of the health protocol by Francisco Quiroga, subsecretary of mining.
  • Bnamericas presented a list of mining projects going forward in 2020-2026 with a capital investment of US$7,450 M, notwithstanding the pandemic induced stoppages. A total of 24 projects would increase the annual production by 1.5 M Oz Au, 33 M Oz Ag and 247 K tonnes Cu to 2026.Bnamericas table, Mining Projects 2020-2026

ON EXPLORATION

  • Kootenay Silver Inc. released results from four more drill holes at its Columba project in Chihuahua. Highlighted core length intervals comprise: 1.06 m @ 259 gpt Ag; 7.0 m @ 124 gpt Ag (including 3.6 m @ 197 gpt Ag); 2.8 m @ 762 gpt Ag (including, 1.0 m @ 2,010 gpt Ag); 10.2 m @ 68 gpt Ag (including 0.65 m @ 368 gpt Ag); 4.4 m @ 209 gpt Ag (including 1.4 m @ 484 gpt Ag); 38 m @ 50 gpt Ag (including 0.45 m @ 486 gpt Ag); 6.0 m @ 317 gpt Ag (including 2.0 m @ 865 gpt Ag); 36 m @ 72 gpt Ag (including 1.1 m @ 769 gpt Ag and 4.36 m @ 317 gpt Ag). Drill results show continuity and high grades along nearly 600 meters of strike on the F Vein at depths from 15 to 200 meters.
  • Ridgestone Mining Inc. has resumed activities at its Rebeico project in Sonora. “Core samples from the first three drill holes at the New Year Zone, which encountered abundant sulphides, have been sent to ALS Chemex in Hermosillo for assaying”.
  • Mammoth Resources Corp. announced the return of Centerra Gold Inc. personnel to Mammoth’s Tenoriba project in Chihuahua.
  • Candente Gold Corp. is planning underground work on the El Dorado project in Las Minitas, Nayarit. Rehabilitation of underground workings is to aid in the construction of a 3-D model of unmined blocks and vein structure, to guide potential mining/extraction operations. Drill data from the 2010-2011 campaign would be also incorporated.
  • Defiance Silver Corp. announced the delineation of multiple targets at is San Acacio project in Zacatecas, which include a 1.3 Km by 300 m corridor where a hanging wall mineralizing event has been identified, deep targets along the Veta Grande strike to the SE, and the El Mirador part of the multi-km long La Veta Morada fault. Re-logging and sampling of historical drill holes is to continue, with a 5,000 m drilling program planned on existing targets. Defiance is preparing additional drill permit applications that will test some of the targets that lie outside of the current drill permit.

ON MINING

  • Sierra Metals Inc. informed the Mexican government issued a communication stating “that the effective date for Mining to be deemed an essential service was June 1, 2020. The Company is currently recalling employees from the Bolivar Mine (Chihuahua) to begin a COVID-19 screening process, including a quarantine period, allowing the Company to be ready to commence mining activities on June 1, 2020. The Cusi Mine (Chihuahua), as previously discussed in the May 13, 2020 press release, remains in care and maintenance”.
  • Aura Minerals Inc. announced that the Company filed its interim financial statements for the first quarter of 2020 (Aranzazu, Zacatecas).
  • Impact Silver Corp. announced its financial and operational results for the first quarter of 2020. Silver production was 179 K Oz Ag, with mill feeds from the Guadalupe, San Ramon, Cuchara and Veta Negra mines. At the end of the period the company cash and working capital stood at $3.9 M and $3.4 M respectively. Mining is to resume on June 1st, 2020, following government directions (Zacualpan, Estado de Mexico).
  • Mexus Gold US. Resumed full operational production after the Coronavirus emergency slowdown at its Santa Elena mine in Sonora (not to be mistaken with First Majestic’s Santa Elena mine, also in Sonora).
  • Fortuna Silver Mines Inc. resumed production activities at its San José mine in Oaxaca.
  • Gold Resource Corp. received written government approval to restart its Oaxaca Mining Unit in Oaxaca. “After reviewing Gold Resource Corporation’s safety protocol documentation, the Instituto Mexicano del Seguro Social (IMMS) approved in writing the restart of the Company’s OMU operations on May 25, 2020”.
  • Endeavour Silver Corp. has restarted operations at its three underground mines in Mexico. “The Company filed its mine operating and health plans with, and received approvals from, the Secretariat of Health in Mexico to recommence mining operations”. Guanaceví in Durango, Bolanitos in Durango and El Compa in Zacatecas are ramping up activities to achieve normal operations.
  • Discovery Metals Corp. announced its operating and financial results for the first quarter 2020. By the end of the period Discovery had cash and cash equivalents of $20 M (Cordero, Chihuahua).
  • Minera Capela (Industrias Peñoles) reported a rock-fall that resulted in two deaths and three more casualties in Tehuixtla, Teloloapan, Guerrero.
  • GR Silver Mining Ltd. Informed that due to international logistics and delays caused by the COVID-19 pandemic, the Company is relying on the blanket relief granted by the securities regulatory authorities in Canada to postpone the filing of its Q1 2020 reports. (Plomosas, Sinaloa).
  • Aura Minerals Inc. expects it will be able to gradually and safely resume activities at Aranzazu, Zacatecas, over the next few weeks.

ON FINANCING

  • Canasil Resources Inc. granted 1.75 M incentive stock options to directors, officers, consultants and employees. David Terry has agreed to act as an advisor to Canasil’s board of directors (La Esperanza, Zacatecas).
  • Orex Minerals Inc. intends to undertake a private placement financing to raise gross proceeds of up to $2 M. “Orex intends to use the net proceeds of the Offering to maintain its 40% share of the Sandra-Escobar Project in good standing and fund its 40% share of the upcoming work program, and for general corporate and working capital purposes”.
  • Silver Tiger Metals Inc. (formerly Oceanus Resources) announced it is now trading on the OTCQB, a US interdealer quotation system. Silver Tiger’s common shares also trade on the TSX Venture Exchange under its trading symbol SLVR (El Tigre, Sonora).
  • VanGold Mining Corp. adopted a warrant acceleration bonus program for its outstanding share purchase warrants granted in connection with the company’s 2019 private placement financing (El Pinguico, Zacatecas).
  • Equinox Gold Corp. reports that from April 1 to May 25, 2020, warrants s held by various security holders have been exercised for net proceeds of approximately $145 M. “As at May 26, 2020, the Company’s cash balance is more than $480 million” (Los Filos, Guerrero).
  • Southern Silver Exploration Corp. announced that the TSX Venture Exchange has approved the extension of the expiry date of certain of the company’s outstanding common share purchase warrants for an additional two years, with the expiration date now from June 2022 to September 2022 (Cerro Las Minitas, Durango).
  • Ridgestone Mining Inc. common shares are now listed on the Frankfurt Stock Exchange, broadening the corporation’s shareholders base in Europe (Rebeico, Sonora).
  • Aztec Minerals Corp. has engaged “Commodity-TV and Rohstoff-TV for an initial three month period to assist with Aztec’s investor relations activities. Pursuant to an agreement dated May 20, 2020, Aztec will pay C&R-TV €9000 plus expenses. C&R-TV is based in Switzerland and will introduce Aztec to its European investor network” (Cerro Cervantes, Sonora).
  • Vizsla Resources Corp. entered into an agreement with Canaccord Genuity Corp. for a bought deal purchase of shares for C$4 M in gross profits (Panuco, Sinaloa).
  • DynaResources Inc. closed a financing agreement with Golden Post Rail, LLC. and with certain individual shareholders of DynaUSA. Golden Post acquired a convertible promissory note of $2.5 M, bearing interest at 10% and maturing two years from the execution date. The other purchaser acquired convertible security notes in the amount of $1.4 M, bearing interest at 10% and maturing two years from the date of issuance (San Jose de Gracia, Sinaloa).
  • Minaurum Gold Inc. closed its previously announced brokered private placement offering, for aggregate gross proceeds of $5 M (Alamos Silver, Sonora).
  • Telson Mining Corp. closed a second and final tranche of the non-brokered private placement announced on December 27, 2019, for gross proceeds of $196.6 K (Tahuehueto, Durango).
  • Golden Tag Resources Ltd. Announced a non-brokered private placement for gross proceeds of up to $1.12 M. “Subsequent to closing of the Financing, the Company will have cash balances of approximately $2.1 million, and no debt” (San Diego, Durango).
  • Solaris Resources Inc. completed a non-brokered private placement financing raising gross proceeds of C$20 M (La Verde, Michoacan).
  • Mammoth Resources Corp. announced a non brokered private placement for gross proceeds of up to $131 K (Tenoriba, Chihuahua).
  • Consolidated Zinc Ltd. announced that the fully underwritten pro-rata non-renounceable entitlements offer to raise $1.73 M on the basis on 1 new share for every 3 shares held at the record date has closed (Plomosas, Chihuahua).

ON RESOURCES AND DEVELOPMENT

  • Mexican Gold Mining Corp. announced the company will resume activities at Las Minas, Veracruz, in July of 2020, with the goal of having all the necessary inputs for a preliminary economic assessment (PEA) study completed by the end of the year. A 3,000 m drilling program has been designed to expand and upgrade the current resource at El Dorado and continue exploration at the Cinco Señores and Changarro areas. A comprehensive metallurgical study is to be elaborated, as well as an airborne LIDAR on 50 square Km to map the ground surface to 10 Cm resolution.
  • Golden Minerals Co. announced the filing on SEDAR of a preliminary Economic assessment (PEA) for its Rodeo property in Durango.
  • Bacanora Lithium PLC. updated on activities at its Sonora Lithium project in Sonora. The pilot plant in Hermosillo is to remain closed until authorities lift the Coronavirus pandemic restrictions. Completion of the flow sheet engineering will provide an engineering, procurement and construction style engineering proposal to produce downstream battery grade lithium products, is now scheduled for end of Q4, 2020. from Sonora.
  • Discovery Metals Corp. informed that to date the company has completed 17,500 m (48 holes) of its planned 30,000 to 35,000 phase 1 drill program, demonstrating near-surface higher-grade potential over a strike length of 1,250 m, intercepting multiple sulfide veins with grades over 1 kilogram silver per tonne at its Cordero project, Chihuahua.

ON DEALS AND CORPORATE ISSUES

  • Mithril Resources Ltd. has completed the acquisition of Sun Minerals Pty Ltd., which holds and exclusive option to acquire the high-grade Copalquin project in Durango. The company issued 673.85 M ordinary shares for the acquisition of all the issued capital of Sun Minerals. Mithril also issued 10 M ordinary shares and paid US$200 K to Compañía Minera Copalquin, S.A. de C.V., and issued 225 M performance rights.
  • Candente Gold Corp. informed the memorandum of understanding (MOU) the company signed with Magellan Acquisition Corp. giving Candente the right to earn up to a 100% interest in both the SDA plant and the El Dorado property, in Nayarit, has been amended such that a payment of US$5 K is being paid upon signing the revised MOU and the payment of shares upon completion of due diligence and a definitive agreement to earn 10% interest has been increased from 4 M shares to 5 M shares, all other terms remain the same. The MOU is subject to TSX Venture approval as well as due diligence and execution of a definitive agreement.
  • Sonoro Metals Corp. has published a revised version of its Cerro Caliche project development report dated May 22, 2020. As a result of a review by the British Columbia Securities Commission, Sonoro withdrew an April 28, 2020 version of this project development report as it contained certain technical disclosures that did not comply with National Instrument 43-101 standards of disclosure for mineral projects. The revised report is not a technical report as defined by NI 43-101 and has been updated to address those disclosure issues and is now available on the Cerro Caliche project page of the Company’s website.

ON SOCIAL RESPONSIBILITY

  • Minera Peña Colorada donated 1000 sets of groceries to aid the most needed families in Cuatitlán de García Barragán, Jalisco.
  • Grupo Mexico donated 23 respiratory ventilators to the State of Sonora, to be distributed mainly in the capital hospitals.
  • Fresnillo PLC donated personal medical protection equipment in Caborca, Sonora.
  • Minera Real Bonanza supports the fight against the Covid-19 menace through the Hacienda Santa Ana museum in Real de Catorce, San Luis Potosi.
  • Grupo Mexico Foundation and Fechac delivered health protection kits to hospitals in Ciudad Juárez, Chihuahua.
  • Fresnillo PLC donated a respiratory ventilator to health authorities in Durango.
  • Fresnillo PLC donated medical protection equipment to a hospital in Fresnillo, Zacatecas.
  • The mining industry in Sonora has contributed with sanitizing kits, grocery kits, medical protection sets, hospital equipment, office equipment and public spaces sanitizing. These have benefited 125,813 people with an investment of $64.6 M pesos during April and May 2020, in communities like Cananea, Caborca, La Colorada, Nacozari, Cumpas, Fronteras, Magdalena, San Javier and Esqueda.

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

On the image below: White, granular quartz-graphite vein, Hermosillo District, Sonora. Picture by Jorge Cirett.

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The Mining and Exploration News in Mexico: Highlights on the Fifth Week of April, 2020

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By Jorge Cirett

During the 18th week of the year (April 27th to May 3rd, 2020), at least 34 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, INEGI presented production of metals and minerals for February. Camimex continues seeking the lifting of the mining halt during the current Coronavirus emergency. The Silver Institute informed Mexico continues to hold the premier position in silver production. Canada, unlike Mexico, permitted mines to operate under the Covid-19 emergency. ON EXPLORATION, in Baja California, One World Lithium is planning to begin drilling in June 2020. In Sonora, Colibri released drilling results at Evelyn, and completed a drone survey at El Mezquite; Sonoro updated on exploration at Cerro Caliche. In Durango, Canasil outlined plans for a drill program at Nora. In Jalisco, GoGold released results from eight holes at Los Ricos South.  ON MINING, Sierra Metals and Equinox Gold reported on the extension of the suspension on mining in Mexico. Agnico Eagle, Capstone, Fresnillo PLC, Excellon Resources, Consolidated Zinc and Alamos Gold released first quarter 2020 results. ON FINANCING, Mag silver completed a non-brokered private placement for C$60 M. SilverCrest Metals closed the private placement for C$27 M. Discovery Metals granted 4.83 M shares. Mexus Gold converted $242.5 K of debt into shares. ON RESOURCES AND DEVELOPMENT, Torex gold updated mineral resources at its El Limon Guajes mine in Guerrero. Agnico Eagle updated on the exploration status of the Santa Gertrudis project in Sonora. Evrim announced an update on the Ermitaño mineral resources in Sonora. Consolidated Zinc updated the mineral resources estimate at its Plomosas mine in Chihuahua. Minera Alamos reported results from drilling at its Santana project in Sonora. ON DEALS AND CORPORATE ISSUES, Telson Mining, Santacruz Silver, Kootenay Silver and Canuc Resources announced that they are to abide by the Canadian Securities Administration extension granted for their annual filings. Xtierra informed on the deal with Minera Portree for control of the Bilbao deposit in Zacatecas, as well of an NSR on claims in the area of Capstone’s Cozamin mine. GR Silver completed the second option payment on the San Marcial project in Sinaloa. ON SOCIAL RESPONSIBILITY. The AIMMGM and Mujeres WIM de Mexico, from Sinaloa donated food for doctors and health workers. Minera Mexico donated 500 food packages in Santa Barbara, Chihuahua. Minera Cuzcatan created a fund for community emergencies. Fresnillo is building a prefabricated hospital in Fresnillo, Zacatecas. Fresnillo PLC is sanitizing public spaces in Caborca, Sonora.

ON MEXICO ISSUES

  • According to INEGI (Mexican Statistics Bureau), during January of 2020 the gold production was: Sonora 3,115 Kg, Guerrero 1,592 kg, Chihuahua 1,554 kg, Zacatecas 1,157 Kg and Durango 976 Kg. For the same period silver production was: Chihuahua 102,205 Kg, Durango 74,909 Kg and Zacatecas 203,251 Kg. Lead production was: Zacatecas 13,184 tonnes, Chihuahua 3,289 tonnes and Durango 1,904 tonnes. For zinc production was: Zacatecas 29,931 tonnes, Chihuahua 9,030 tonnes and Durango 8,364 tonnes. On iron production was: Coahuila 338,198 tonnes, Colima 201,016 tonnes, Michoacan 198,023 tonnes, Chihuahua 37,664 tonnes and Durango 8,767 tonnes.
  • CAMIMEX and the PRI senate members had a virtual conference on which they shared their viewpoints on how the COVID-19 emergency is to affect the mining industry and what can be done to ameliorate the damage.
  • The Silver Institute informed that Mexico maintains its position as the major silver producer in the World. In 2019 Mexico produced 190.3 M Oz, Perú 135.4 M Oz and China 110.7 M Oz.
  • In striking difference with Mexico, Canada permitted mines to operate under the Covid-19 virus emergency. Miners in Mexico set their hopes for reactivation on the petition by USA and Canadian authorities to the Mexican government for a stepped reactivation of productive chains.
  • INEGI (Statistics Bureau) presented metal production figures for February 2020:INEGI Feb 202021

ON EXPLORATION

  • Sonoro Metals Corp. released the “Cerro Caliche Development Report” that summarizes the results of work to advance the understanding of the mineralized system of the project located in Sonora. “The report also assesses regional and property geology, the mapped zonation of the Cerro Caliche low-sulfidation epithermal system, and related potential for significantly higher grades at depth. It also includes two grade x thickness modeling tools, namely – longitudinal 3D sections and Isopachs, all based on drilling to date”.
  • Colibri Resource Corp. released results of its maiden campaign at its Evelyin project in Sonora. Significant drill hole intersections comprise 21.90 m @ 0.14 gpt Au (including 5.05 m @ 0.37 gpt Au); 27.00 m @ 0.10 gpt Au; 10.50 m @ 0.11 gpt Au. Further geologic mapping and rockchip sampling is to follow once the Covid-19 restrictions are lifted.
  • Colibri Resource Corp. recently completed a high definition topographical drone survey over its El Mezquite project in Sonora.
  • One World Lithium Inc. is planning the next phase of drilling at its Salar del Diablo project in Baja California for early June 2020, following completion of the recently announced financing.
  • GoGold Resources Inc. released the assays for eight diamond drill holes at the Los Ricos South project in Jalisco. Three holes were drilled at the San Juan area and the rest at the Main Area. Core length significant intersections comprise: 20.1 m @ 0.33 gpt Au, 100 gpt Ag (including 6.0 m @ 0.97 gpt Au, 257 gpt Ag); 23.2 m @ 0.68 gpt Au, 113 gpt Ag; 26.6 m @ 0.29 gpt Au, 47 gpt Ag (including 4.7 m @ 1.24 gpt Au, 129 gpt Ag); 22.3 m @ 1.01 gpt Au, 52 gpt Ag (including 10.0 m @ 1.79 gpt Au, 64 gpt Ag); 4.2 m @ 2.87 gpt Au, 344 gpt Ag; 15.4 m @ 0.79 gpt Au, 91 gpt Ag.
  • Canasil Resources Inc. outlined plans for an initial core drill program on the Candy vein at the Nora project in Durango. Rock samples in the vein have returned 1.0 m @ 3.72 gpt Au, 605 gpt Ag, 0.97%Cu, 1.2% Pb, 0.4% Zn; 1.4 m @ 0.89 gpt Au, 392 gpt Ag, 0.06% Cu, 0.2% Pb; 1.0 m @ 2.98 gpt Au, 540 gpt Ag, 0.85% Cu, 4.0% Pb, 3.5% Zn; 0.6 m @ 2.28 gpt Au, 316 gpt Ag, 0.57% Cu, 2.4% Pb, 0.2% Zn; 0.8 m @ 3.03 gpt Au, 585 gpt Ag, 2.8% Cu, 5.2% Pb, 1.8% Zn; 0.6 m @ 6.55 gpt Au, 10 gpt Ag, 0.06% Cu, 0.3% Pb; 0.4 m @ 12.55 gpt Au, 12 gpt Ag, 1.02% Cu, 2.7% Pb, 0.7% Zn. Dump samples have returned up to 2.89 gpt Au, 193 gpt Ag, 2.64% Cu, 8.0% Pb, 9.8% Zn.

ON MINING

  • Sierra Metals Inc. reported that the Mexican Federal Government extended the suspension of all non-essential activities to contain the advance of COVID-19 virus. The suspension will now continue until May 30, 2020, but the suspension will not apply to the municipalities that present a low or null transmission of the virus, as of May 18, 2020. This raises the possibility that the Bolivar mine in Chihuahua may be able to resume operations, due to its remote location.
  • Equinox Gold Corp. announced the temporary suspension of mining activities at its Los Filos mine in Guerrero has been extended until May 30, 2020, with the potential to an earlier start-up by May 18, 2020. The solution from the leach pads has continued to be processed at a slower pace.
  • Agnico Eagle Mines Ltd. informed the suspension related to the COVID-19 virus emergency is to cost $6.6 M in Mexico. During the first quarter 2020, 480 K tonnes were processed at Pinos Altos, Chihuahua, at a daily rate of 5,275 tonnes per day (tpd) of material grading 2.36 gpt Au to produce 33,310 Oz Au at production cash cost of $1,077 per Oz Au and total cash cost of $747 per Oz Au. The drilling budget for the year is $7.8 M on a total of 42,000 meters. Current proven and mineral reserves are 957 K Oz Au, 24 M Oz Ag; indicated and measured resources of 1.1 M Oz Au, 26 M Oz Ag; inferred mineral resources stand at 435 K Oz Au. At La India, in Sonora, 1.53 M tonnes were processed at a 16,857 tpd rate, grading 0.74 gpt Au to produce 22,926 Oz Au at total cash cost per Oz Au of $778. Residual leaching continues through the Coronavirus shutdown at La India.
  • Capstone Mining Corp. presented production and financial results for Q1 2020, including figures from its Mexican operations. At Cozamin, in Zacatecas, 8.7 M pounds of copper were produced at cash cost $0.95 per pound of copper. As part of the expansion project, an 818 m raise bore was completed, improving ventilation on the deepest part of the mine. “The final key component of this expansion, the Calicanto one-way ramp, continues as scheduled and on budget to be completed in December 2020”.
  • Fresnillo PLC. presented its first quarter 2020 production report. During the first quarter 130,000 meters of drilling were completed on operating mines, in addition 38,000 meters “were drilled at the Fresnillo, San Julián and Guanajuato districts in Mexico, and two projects outside Mexico (Peru and Chile). Interesting results were obtained in the Fresnillo district that merit follow up…”.Fresnillo Production Table, Q1 20201
  • Excellon Resources Inc. announced first quarter 2020 production results from the Platosa mine in Durango. During the period 19,899 tonnes were mined, with 19,042 tonnes processed, grading 542 gpt Ag, 5.44% Pb, 6.78% Zn, recovering 89.3% Ag, 82.8% Pb, 74.9% Zn, to produce 296,281 Oz Ag, 1.89 M Lb Pb, 2.13 M Lb Zn, or 523,742 Oz AgEq.
  • Consolidated Zinc Ltd. disclosed first quarter 2020 operations report at its Plomosas mine in Chihuahua. During the quarter 9,987 tonnes were mined, 10,321 tonnes were processed @ 16.6% Zn, 8.4% Pb, 46 gpt Ag. Regional exploration has outlined several zones of interest to the northwest of the mine, returning several high-grade gold-copper samples.
  • Alamos Gold Inc. presented first quarter 2020 results, including figures from its Mexican operations. At Mulatos, Sonora, 1.92 M tonnes of ore were mined, 2.34 M tonnes of waste moved, 22,342 tpd crushed, with 2.03 M tonnes staked on the heap @ 1.25 gpt Au, containing 81,933 Oz Au, and producing 42,600 Oz Au on an average recovery rate of 52%. Alamos is finalizing project design and plans to finalize the La Yaqui Grande project economics and announce a construction decision in the second quarter of 2020. Exploration is moving beyond the main Mulatos area into earlier stage project within the 28,972 ha land package, with $1.8 M invested during the period.

ON FINANCING

  • Mag Silver Corp. arranged a non-brokered private placement with Mr. Eric Sprott for gross proceeds of C$60 M (Juanicipio, Zacatecas).
  • Telson Mining Corp. is seeking a 30 day extension from the TSX Venture Exchange to close its non-brokered private placement offering for up to C$3 M of gross proceeds.
  • SilverCrest Metals Inc. closed the private placement with SSR Mining Inc. for C$26.98 M, strengthening SilverCrest’s financial position to a cash balance of C$234 M in its treasury. (Las Chispas, Sonora).
  • Discovery Metals Corp. granted 4.83 M options to acquire common shares of the company at $0.47 per share (Cordero, Chihuahua).
  • Mexus Gold US. Informed $242,500 of debt incurred by the company was converted to shares already held in reserve.
  • Mag Silver Corp. completed the previously announced non-brokered private placement for gross proceeds of C$60 M. “A finders’ fee is payable in connection with the Offering to a group of financial advisors led by Clarus Securities Inc.” (Juanicipio, Zacatecas).

ON RESOURCES AND DEVELOPMENT

  • Discovery Metals Corp. announced that during the last quarter of 2019 a second rig was added to the drilling campaign at Cordero, Chihuahua, and that a non-brokered private placement for $19.0 M was completed. By the end of the period the company had $23.95 M in cash and cash equivalents.
  • Torex Gold Resources Inc. updated mineral reserves and resources at its El Limón Guajes Complex in Guerrero. Open pit proven and probable reserves stand at 24.82 M tonnes @ 2.92 gpt Au containing 2.33 M Oz Au and underground reserves of 0.66 Mt @ 6.94 gpt Au containing 0.15 M Oz Au. Open pit measured and indicated resources stand at 35.78 Mt @ 2,77 gpt Au containing 3.19 M Oz while underground M&M resources hold 1.17 Mt @ 7.04 gpt Au containing 0.26 M Oz Au. Total reserves and M&M resources contain 5.93 M Oz Au, and total inferred resources another 0.45 M Oz Au.
  • Agnico Eagle Mines Ltd. updated on the exploration of its 44,145 ha Santa Gertrudis project in Sonora. As of the end of 2019 the project holds open-pit oxide indicated mineral resources of 5.1 M tonnes @ 0.64 gpt Au containing 104 K Oz Au and inferred mineral resources of 19.1 M tonnes @ 1.17 gpt Au containing 717 K Oz Au. Underground sulfide inferred resources stand at 3.1 M tonnes @ 4.58 gpt Au, containing 451 K Oz Au. Selected true width intervals of drilling at La Amelia deposit comprise 6.0 m @ 3.7 gpt Au, 3 gpt Ag; 13 m @ 3.3 gpt Au, 10 gpt Ag (including 5.5 m @ 5.3 gpt Au, 17 gpt Ag); 10 m @ 5.3 gpt Au, 7 gpt Ag (including 4.5 m @ 10.3 gpt Au, 5 gpt Ag); 10 m @ 3.2 gpt Au, 34 gpt Ag; 4 m @ 3.5 gpt Au, 5 gpt Ag; 4.5 m @ 5.1 gpt Au, 20 gpt Ag.
  • Evrim Resources Corp. announced an update to the gold-silver resource on the Ermitaño project in Sonora. Property owner First Majestic Silver Corp. released the following figures: An indicated resource of 2.1 M tonnes @ 4.59 gpt Au, 70 gpt Ag containing 311 K Oz Au, 4.73 M Oz Ag; an inferred resource of 3.73 M tonnes @ 3.08 gpt Au, 58 gpt Ag containing 370 K Oz Au, 6.98 M Oz Ag. Evrim holds a 2% NSR on the Ermitaño project.
  • Consolidated Zinc Ltd. updated the mineral resource estimate for its Plomosas mine in Chihuahua. Indicated mineral resources stand at 165 K tonnes @ 13.9% Zn, 6.3% Pb, 35.7 gpt Ag, containing 23 K tonnes Zn, 10 K tonnes Pb, 189 K Oz Ag. Inferred resources hold 799 K tonnes @ 13.0% Zn, 3.0% Pb, 17.5 gpt Ag, containing 104 K tonnes Zn, 24 K tonnes Pb, 450 K Oz Ag.
  • Minera Alamos Inc. reported additional results from its phase II drill program at its Santana project in Sonora. Significant intervals comprise 17.7 m @ 0.58 gpt Au; 53.2 m @ 0.75 gpt Au; 68.7 m @ 0.50 gpt Au; 101.0 m @ 0.37 gpt Au; 73.7 m @ 0.36 gpt Au; 143.7 m @ 0.50 gpt Au; 9.7 m @ 0.29 gpt Au; 25.3 m @ 0.31 gpt Au; 247.9 m @ 0.60 gpt Au. This campaign has extended the deposit by 50-100 m to the south-southwest.

ON DEALS AND CORPORATE ISSUES

  • Telson Mining Corp. informed that the Canadian Securities Administration granted blanket relief for all reporting issuers, providing up to a 45-day extension on periodic filings, and that Telson will abide by it (Campo Morado, Guerrero).
  • Santacruz Silver Mining Ltd. will be postponing the filing of its annual consolidated financial statements, and abide by the 45-day extension granted by the Canadian Securities Administration (Veta Grande, Zacatecas).
  • Kootenay Silver Inc. expects to file the Annual filings before the extension deadline required by the Canadian Securities Administrators (Columba, Chihuahua).
  • Xtierra Resources Inc. reported results for the year 2019. The company holds the rights to the Bilbao project, and acquired last year a 1.5% royalty on the project by paying C$51 K in cash and C$49 K in shares. Xtierra entered into an agreement to acquire 88% of Minera Portree by the payment of C$56 K and 2 M shares. Among the assets of Minera Portree is the right to a 2% NSR on six mining concessions adjacent to Capstone’s Cozamin mine in Zacatecas. Five of those concessions were acquired by Capstone in 2017 and 2019. An extension agreement was signed with Buchan Resources Ltd. to defer repayment of principal and accrued interest of its $800 K debt, in consideration of which 13 M shares were issued to Buchan (Bilbao, Zacatecas).
  • GR Silver Mining Ltd. announced the completion of the second option payment on the San Marcial project in Sinaloa, which included the issuance of 750 K common shares to the optionor.
  • Canuc Resources Corp. announced the postponement of the filing of the annual consolidated financial statements, according with the Canadian Securities Administration blanket extension (San Javier, Sonora).

ON SOCIAL RESPONSIBILITY

  • The Asociación de Ingenieros Mineros, Metalurgistas y Geólogos de Mexico (AIMMGM) in coordination with Mujeres WIM de México, both from the Sinaloa District, donated food for doctors and health care workers at the Riviera Hotel, where they are hosted.
  • Minera México donated 500 food packages in Santa Barbara, Chihuahua.
  • Minera Cuzcatan (Fortuna Silver) created a Fund for community emergencies. Said Fund is to be used to cover the need for medications, groceries and funerary expenses, in coordination with local municipality authorities and adherence to health dispositions.
  • Fresnillo PLC is hurriedly building a hospital for Covid-19 patient care. The pre-fabricated building is to be installed by the side of the local IMSS clinic in Fresnillo, Zacatecas, and is to have a capacity for 38 patients.
  • Fresnillo PLC in coordination with the Caborca Municipality is sanitizing public spaces. These include 40 areas, like open plazas, parks, supermarkets, bus stations, clinics, hospitals, Red Cross facilities, firefighters station banks and local national guard facilities, all of which will be sanitized constantly.

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

On the image below: Milky quartz float with oxidized sulfide in an orogenic gold system in Oaxaca. Picture by Jorge Cirett.

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