Resources and Development

The Mining and Exploration News in Mexico: Highlights on the Fifth Week of March 2023

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By Jorge Cirett                                             

During the 13th week of the year (March 27th to April 2nd, 2023), 18 companies working in Mexico released news on their properties. Two companies informed on exploration on their properties, three companies informed on Q4 and year 2022 financial and operational results. Two companies closed partial or complete share placements. Two companies filed technical reports on their properties, two more released drilling results on their advanced properties and two more updated mineral resource estimates for their properties. Two companies announced the completion of the acquisition process on mining projects. ON MEXICO ISSUES, the Mexican president sent an initiative to change the Mining Law that is likely to strongly impact the mineral exploration industry. ON EXPLORATION, In Sonora, Tocvan Ventures provided an update on bulk sampling at its Pilar property; Reyna Gold is to drill its La Gloria project. ON MINING, Mag Silver, Sierra Metals and Avino Silver released Q4 2022 financial reports. ON FINANCING, Silver Spruce closed a private placement for $1.13 M, Golden Tag closed the first tranche of a non-brokered private placement. ON RESOURCES AND DEVELOPMENT, Alamos Gold and Sonoro Gold filed NI-43-101 technical reports on the Mulatos and Cerro Caliche properties respectively, both in Sonora. GoGold Resources released drilling results from Los Ricos South project in Jalisco. Oroco Resource informed on drilling at the Santo Tomás project in Sinaloa. Argonaut Gold updated on mineral resources at five of its properties in Mexico. Aura Minerals reported on mineral reserves and resources at Aranzazu, in Zacatecas. ON DEALS AND CORPORATE ISSUES, Argonaut Gold completed the sale of the Ana Paula project in Guerrero to Heliostar Metals. Sierra Metals completed the acquisition of La Guitarra project, in Estado de Mexico, from First Majestic Silver. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • The president of México, Andrés M. López Obrador sent to Congress an initiative to reform the Mining Law, National Water Law, Ecological Equilibrium Law and Environmental Protection and the General Law for Prevention and Integral Management of Residues relating to Mining and Water Concessions. The initiative displays a heavy ideological charge on the exposition of motifs, full of propaganda epithets against the “neoliberal” current state of affairs on these matters. Any good specific proposal within the initiative is overwhelmed by the sheer amount of new rules designed for the State to have a firm grip on the industry, many of which involve granting the government power to decide when to take away a concession on flimsy grounds, raising the uncertainty level for mining investment in Mexico. Some takeaway points that drastically change how the mining industry is operating in Mexico include: The government is to perform auctions for mining concessions (no more staking). Mining activities are no longer considered to have priority over other land uses. No land expropriation on mining grounds. Social impact studies to be conducted before any exploration takes place. Public consultations with “towns”, indigenous (which by the way are auto ascribed) and afro-Mexican communities. Reduction of mining concessions rights from 50 to 15 years, that could be renewed only once (more than a few operations in Mexico have been continuous for far longer periods). Mining concessions are conditioned to water “availability” (yes, the government decides, unconstrained, when there is available water, anytime). No private transmission of mining concessions without government consent (again, absolute power to the government). Added cancellation causes include lack of report in possible harm or risks to ecological equilibrium, lack of permits, concessions or authorizations from other authorities and lack of closing programs or management of residues. The only way to obtain a concession is to be by government auction (Concurso). Limits mining concessions coverage to only one element (you have to wonder on the genius that came with this proposal). The list continues, but in a first pass reading those above come as the most likely to cause an exodus of investment in mining exploration in Mexico. Mines are to continue operating, and advanced properties are likely to continue to development, but the Mexican exploration industry is about to halt when this initiative is approved, as the government has the required number of votes secured in Congress. Dialogue between industry entities and the government should take place before this initiative is voted, because better alternatives should be sought in order to achieve a better operating mining industry. Alternative options agreed upon should both improve the effect of mining operations in communities and the environment while promoting investment, thus helping Mexico’s development as a whole.         

ON EXPLORATION

  • Tocvan Ventures Corp. provided a progress update on the first bulk sample at the Pilar project in Sonora. Over 1,200 tonnes of material have been stockpiled with the first shipments completed. Four head-grade samples averaged 6.2, 7.6, 1.3 and 7.6 gpt Au. “Diagnostic leach tests are ongoing and were collected from four trench areas and one select drill core coarse reject sample. Preliminary results from the study suggest free gold is present in the samples and has been confirmed visually by testing sieved…. Up to 1,000 tonnes of oxide-gold material will be extracted from select areas….. The information provided from the sample will be used for planning in coordination for permitting of full-scale mine and process facilities on-site at Pilar”.
  • Reyna Gold Corp. announced the mobilization to recommence a minimum of 5,500 m of diamond drilling at its 24,215 ha La Gloria property in Sonora. The program is focused on four targets: La Republicana, Western, Las Carmelitas and Main Zone. At La Republicana drilling “will test extensions to the La Republicana Main Vein, which produced 59.00m of 1.45 g/t Gold in Phase 1 drilling”, on the 1 km long vein with significant anomalies delineated by an induced polarization survey. At Western, abundant quartz veining with Au-Te high-grades are to be tested. At Las Carmelitas high Cu, Ag, Sb assays have been obtained in a large conglomerate/agglomerate system. At the Main Zone, follow-up is to test on phase-1 drilling that returned 5.5 m @ 935 gpt Ag; 7.85 m @ 3.94 gpt Au; 30.60 m @ 0.51 gpt Au.

ON MINING

  • Mag Silver Corp. announced consolidated financial results for 2022. Commissioning of the Juanicipio plant in Zacatecas commenced in early January 2023, after the entire system was connected to the national power grid in late December 2022. During the year 646.1 K tonnes were processed thorough the Fresnillo and Saucito plants, producing 8.7 M Oz Ag, 20,268 Oz Au, 4,487 tonnes Pb, 6,758 tonnes Zn, netting $132.8 M in gross profit by Juanicipio (56% Fresnillo PLC, 44% Mag Silver).  At the end of 2022 Mag Silver had 29.2 M of working capital, with no long-term debt. The company closed a $42.6 M bought deal public offering on February 2023.
  • Sierra Metals Inc. presented Q4 and year-end 2022 consolidated financial results. The company has operations in Chihuahua and Peru, but no production details by unit were presented. Sierra Metals obtained $46.2 M in revenue during the year, with an adjusted EBITDA of $13 M, a net loss of $88.3 M. The company had cash and cash equivalents of $5.1 M and negative working capital of $84.4 M. For 2023 the production guidance at Bolivar, in Chihuahua, envisions a production of 34.5 – 39.5 M Lb CuEq at cash cost $2.99 per Lb CuEq and an AISC of $5.07 per Lb CuEq. At Cusi, in Chihuahua, an undisclosed amount of silver ounces was produced at cash cost $16.77 per Oz AgEq and an AISC of $23.17 per Oz AgEq.
  • Avino Silver & Gold Mines Ltd. released consolidated financial results for Q4 and year-end 2022. During the year, the Avino mine in Durango milled 541.8 K tonnes to produce 985 K Oz Ag, 5,778 Oz Au, 6.5 M Lb Cu (or 2.65 M Oz AgEq), at cash cost $10.34 per Oz AgEq and an AISC of $17.91 per Oz AgEq. In the year the company had revenue of $44.2 M, ending the period with a $11.2 M cash balance and $8.8 M in working capital.

ON FINANCING

  • Silver Spruce Resources Inc. closed a private placement for $1.13 M in proceeds (Diamante, Sonora).
  • Golden Tag Resources Ltd. closed the first tranche of the previously announced non-brokered private placement, aiming to raise $5.7 M in aggregate gross proceeds (Don Diego and La Parrilla, Durango).

ON RESOURCES AND DEVELOPMENT

  • Alamos Gold Inc. announced the filing of a NI43-101 compliant technical report for its Mulatos property in Sonora.
  • Sonoro Gold Corp. reported the filing of a NI-43-101 compliant technical report on the mineral resource estimate at its Cerro Caliche project in Sonora. The report includes indicated resources of 19.9 M tonnes @ 0.44 gpt Au, 3.5 gpt Ag, containing 280 K Oz Au, 2.2 M Oz Ag, and inferred resources of 10.5 M tonnes @ 0.42 gpt Au, 4 gpt Ag, containing 140 K Oz Au, 1.3 M Oz Ag. The resources are amenable to a combination of open pit and heap leach extraction.
  • GoGold Resources Inc. announced drilling results from the Eagle and Main deposits at its Los Ricos South project in Jalisco. Highlighted core length intervals comprise 23.3 m @ 7.07 gpt Au, 86 gpt Ag (including 2.7 m @ 45.01 gpt Au, 106 gpt Ag); 39.9 m @ 1.28 gpt Au, 87 gpt Ag; 16.3 m @ 1.09 gpt Au, 28 gpt Ag; 18.2 m @ 1.72 gpt Au, 118 gpt Ag; 13.9 m @ 3.63 gpt Au, 144 gpt Ag. “The purpose of the program is to better define the very high-grade portions of the current deposit that may be amenable to bulk underground mining. The Company is carrying out a trade-off study to better define what portion of the deposit could be mined in a lower strip ratio pit and what portion would best be mined in more selective bulk underground mining”.
  • Oroco Resource Corp. released results from drilling at the South Zone of the Santo Tomás project in Sinaloa. Highlighted core length intervals estimated to be within 10% of true width comprise 221.7 m @ 0.023 gpt Au, 2 gpt Ag, 0.37% Cu; 145.0 m @ 0.008 gpt Au, 2 gpt Ag, 0.25% Cu; 89.0 m @ 0.011 gpt Au, 2 gpt Ag, 0.31% Cu (including 25.0 m @ 0.020 gpt Au, 4 gpt Ag, 0.74% Cu); 81.0 m @ 0.011 gpt Au, 1 gpt Ag, 0.20% Cu. “Historical drilling, surface geological mapping, and the Dias Geo 3D Induced Polarization survey have defined near-surface mineralization projected to 400 m below the surface along 2,000 m of strike length in the South Zone”.
  • Argonaut Gold Inc. updated its mineral resources to the end of 2022, including figures from its Mexican properties. The following table shows the resources on its Mexican properties, which at the end of 2022 comprised proven and probable reserves of 2.3 M Oz Au, 51.7 M Oz Ag, 86 K tonnes Cu, 5.6 M Oz Au, 94.9 Oz Ag, 187 K tonnes Cu in measures and indicated resources and 603 K Oz Au, 17.1 M Oz Ag, 5 K tonnes Cu in inferred resources.
  • Aura Minerals Inc. reported updated mineral reserves and resources for its operating mines, including from its Aranzazu mine in Zacatecas, to the end of 2022. Proven and probable mineral reserves stand at 9.6 M tonnes @ 0.81 gpt Au, 17.61 gpt Ag, 1.23% Cu, containing 249 K Oz Au, 5 M Oz Ag, 259 M Lb Cu. Measured and indicated resources comprise 15.1 M tonnes @ 0.97 gpt Au, 21.15 gpt Ag, 1.44% Cu, containing 471 K Oz Au, 10.4 M Oz Ag, 477.3 M Lb Cu. Inferred resources stood at 4.3 M tonnes @ 0.55 gpt Au, 16.37 gpt Ag, 1.04% Cu, containing 76 K Oz Au, 2.3 M Oz Ag, 99 M Lb Cu.

ON DEALS AND CORPORATE ISSUES             

  • Argonaut Gold Inc. announced the completion of the sale of the Ana Paula project in Guerrero to Heliostar Metals Ltd. The deal involved US$10 M in cash upon closing and US$20 M in deferred cash and share considerations. The project has 1 M Oz Au @ 2.36 gpt Au in proven and probable mineral reserves, is permitted for an open pit and potential for underground mining, with 142,000 m of drilling in 333 holes.
  • Sierra Madre Gold and Silver Ltd. announced the completion of the acquisition of the La Guitarra property in Estado de Mexico. Sierra Madre issued to First Majestic Silver Corp. 69 M shares for it to maintain a 19.9% interest on Sierra Madre, shares that are to be released by an escrow on four equal installments between September 2023 and March 2025. The company opened a brokered private placement on September 2022, intending to raise up to $10 M. The common shares are halted from trading, and are expected to resume trading following the closing of the common share offering.  

ON SOCIAL RESPONSIBILITY

  • Avino Silver & Gold Mines received for the first time in 2022 the ESR (Empresa socialmente responsible) award “granted by the Mexican Center for Philanthropy (El Centro Mexicano para la Filantropia or Cemefi, and the Alliance for Corporate Social Responsibility (Alianza por la Responsabilidad Social Empresarial or (AliaRSE))”.

On the image below: Porphyritic felsic dike on a project in the Sonoran Desert. Picture by Jorge Cirett.

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

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By Jorge Cirett

During the 7th week of the year (February 13th to February 19th, 2023), 13 companies working in Mexico released news on their properties. One company informed on a new exploration model for its projects. Two companies informed on Q4 2022 production and 2023 guidance. One company closed a first tranche on a financing round, while one other closed the previously announced private placement and one more granted shares and stock options to board members. One company filed a PFS on its project and one more updated on the resource estimate for one of its properties. Two companies informed on drilling results and work on their advanced properties. Two companies informed they have earned 50% interest in a project, and one other received notice of claims totaling US$19.7 M. ON MEXICO ISSUES, The Mexican president continues to assert his power by claiming that all lithium reserves will pass to a government’s company. The Sonora State Economy Secretary vigorously backed the importance of the mining industry in the State. ON EXPLORATION, in Coahuila, Southern Empire Resources claims mineralization at its properties in Durango might be of Carlin style. ON MINING, Gold Resource and Capstone Copper released Q4 2022 production or/and financial production reports and guidance for 2023. ON FINANCING, Reyna Silver closed the first tranche of its private placement (C$5 M), Mag Silver completed its bought deal private placement (C$23 M) and Orogen Royalties granted shares and stock options to independent board members. ON RESOURCES AND DEVELOPMENT, Discovery Silver filed the PFS on the Cordero project in Chihuahua. Vizsla Silver reported drilling results at Panuco, in Sinaloa. Avino Silver updated the mineral resource estimate for all deposits at its Avino property in Durango. Impact Silver released drilling results from the Aurora 2 zone at its Capire project in Guerrero. ON DEALS AND CORPORATE ISSUES, Silver Spruce Resources and Colibri Resource earned 50% ownership in the Diamante property in Sonora. Magna Gold received notices on claims totaling $19.7 M. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • The Mexican president, Andrés M. López Obrador announced on one of its daily propaganda conferences: “I am to sign the decree to forward the lithium concession, all the reserves, to the Energy Secretariat”. In April 2022 the government declared lithium as a public utility mineral, and its exploitation to be only possible under the public enterprise Litio para México.
  • Margarita Vélez Rocha, the Sonora Economy Secretary, recognized the importance of the mining sector in the State, pointing that it directly employs more than 26 thousand workers and more than 120 thousand indirectly, with 39 municipalities having mining activities and 23 on which it is the main economic activity.

ON EXPLORATION

  • Southern Empire Resources Corp. announced that synchrotron radiation micro-X-ray fluorescence mineralogical studies of drill core samples from its Pedro project in Durango reveal mineralogical similarities to deposits of the Carlin belt in Nevada. Gold mineralization at Centauro and Pedro projects, both in Durango, is associated to hematite-stained, weak to moderately silicified brecciated conglomerate of the Eocene to Oligocene Ahuichila Formation. Historic drilling results include intervals like 5.60 m @ 0.59 gpt Au; 19.82 m @ 0.31 gpt Au; 15.23 m @ 0.58 gpt Au; 50 m @ 0.28 gpt Au; 88.10 m @ 0.24 gpt Au; 112.40 m @ 0.12 gpt Au, with anomalous Ag, As, Sb Tl and Hg.

ON MINING

  • Gold Resource Corp. issued 2023 guidance and suspension of dividends. For 2023 the company expects to produce 17 to 19 K Oz Au, 0.9 to 1.0 M Oz Ag (or 30 to 32 K Oz AuEq) at cash cost $1,000 to $1,050 per AuEq Oz and an AISC of $1,250 to $1,350 per AuEq Oz (Consolidated: $1,650 to $1,750 per AuEq Oz). “the lower grade profile is expected to continue through 2023 and is projected to negatively impact operating cash flows and total cash costs per gold equivalent ounce”, and accordingly “will suspend the quarterly dividend until such time that it may become practicable to reinstate” (Don David, Oaxaca).
  • Capstone Copper Corp. reported financial results for Q4 2022 and year 2022, including figures from its Mexican operations. At Cozamin, in Zacatecas, 3,430 tpd were milled during the quarter to produce 5.8 K tonnes of copper, totaling 24.5 K tonnes Cu on the year at cash cost $1.40 per Lb Cu (which is the lowest cost for Capstone operations). Cash and cash equivalents stood at $170.3 M by the end of the period.

ON FINANCING

  • Reyna Silver Corp. announced the closing of the first tranche of its bought deal private placement for gross proceeds of C$5 M (Guigui and Batopilas, Chihuahua).
  • Mag Silver Corp. completed the previously announced bought deal private placement for aggregate gross proceeds of C$23 M (Juanicipio (44%), Zacatecas).
  • Orogen Royalties Inc. authorized the granting of 156 K restricted share units, 156 K deferred share units and 238 K stock options to independent board members (Royalties on Ermitaño, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Discovery Silver Corp. filed the pre-feasibility study (PFS) on its Cordero property in Chihuahua.
  • Vizsla Silver Corp. reported results from 19 holes on the Copala structure of the Panuco project in Sinaloa. The results represent step-out and infill drilling on the Copala structure that has now been traced for 1,110 m of strike and 400 m downdip. Highlighted true width intervals comprise 2.50 m @ 1,673 gpt Ag, 5.39 gpt Au; 3.35 m @ 428 gpt Ag, 3.64 gpt Au; 2.40 m @ 288 gpt Ag, 1.73 gpt Au; 13.70 m @ 270 gpt Ag, 1.48 gpt Au; 6.00 m @ 648 gpt Ag, 4.29 gpt Au; 3.00 m @ 247 gpt Ag, 2.17 gpt Au; 2.90 m @ 1,010 gpt Ag, 5.91 gpt Au; 6.20 m @ 242 gpt Ag, 1.15 gpt Au; 4.61 m @ 453 gpt Ag, 9.16 gpt Au; 6.00 m @ 176 gpt Ag, 1.12 gpt Au.
  • Avino Silver & Gold Mines Ltd. completed an updated mineral resource estimate for the Avino ET, San Gonzalo, La Potosina, Guadalupe and Oxide Tailing deposits at its Avino property in Durango. Measured and indicated resources comprise 34.7 M tonnes @ 63 gpt Ag, 0.54 gpt Au, 0.39% Cu (or 144 gpt AgEq) containing 70.0 M Oz Ag, 596.6 K Oz Au, 301.4 M Lb Cu. Inferred resources stand at 19.3 M tonnes @ 46 gpt Ag, 0.34 gpt Au, 0.37% Cu (112 gpt AgEq) containing 28.4 M Oz Ag, 212.6 K Oz Au, 158.5 M Lb Cu. Another nearby property, La Preciosa, is also held by Avino and contains 98.6 M Oz Ag, 189.2 K Oz Au in indicated resources and 21.3 M Oz Ag, 35.5 K Oz Au in inferred resources.
  • Impact Silver Corp. announced drill results from the Aurora 2 zone, 1.3 km northeast of the Capire processing plant (in Guerrero), and 16 km south of the company’s active mining operations at the Royal Mines of Zacualpan in Estado de Mexico. The mineralization at the site consists of volcanogenic massive sulfides (VMS) lenses, extending the zone to the west. Highlighted true width intervals comprise 2.39 m @ 106 gpt Ag, 0.42 gpt Au, 0.3% Pb, 0.8% Zn; 3.73 m @ 66 gpt Ag, 0.40 gpt Au, 0.2% Pb, 0.5% Zn; 7.48 m @ 128 gpt Ag, 0.42 gpt Au, 0.8% Pb, 1.8% Zn; 1.01 m @ 138 gpt Ag, 0.49 gpt Ag, 0.5% Pb, 1.1% Zn; 7.95 m @ 63 gpt Ag, 0.52 gpt Au, 0.9% Pb, 2.8% Zn; 2.11 m @ 51 gpt Ag, 0.15 gpt Au, 0.5% Pb, 1.9% Zn; 2.38 m @ 142 gpt Ag, 0.37 gpt Au, 0.2% Pb, 0.5% Zn; 3.28 m @ 34 gpt Ag, 0.24 gpt Au, 0.4% Pb, 1.2% Zn.   

ON DEALS AND CORPORATE ISSUES

  • Silver Spruce Resources Inc. and Colibri Resource Corp. reported the companies have earned 50% ownership interest in the Diamante project in Sonora, while Vendor Bimsa Minera SA de CV retains 50% ownership in the Property. “The 1,057-hectare Diamante property is located adjacent to the Jackie property, a joint venture with Colibri, which covers 1,113 hectares, providing the company with a total of 2,170 hectares of exploration ground. Diamante hosts a number of historical showings and combined with mineralization on the Mezquite and Jackie properties exhibit the geological characteristics of epithermal low to intermediate sulfidation Ag-Au (Pb-Zn)”. With completion of the initial earn-in, Silver Spruce and Colibri together will become equal joint venture partners with the Vendor in BIMCOL Minera, with a six months exclusive period to purchase the remaining 50% by paying either US$2.1 M or US$1.45 M and 2% NSR.
  • Magna Gold Corp. informed the receipt of notices of claims from three of its creditors, Cominivi Servicios S.A. de C.V., Covoro Mining Solutions Mexicana S. de R. L. de C.V. and Sidney W. French S.A. de C.V. for US$6.49 M. Also, a notice of commencement of arbitration with Peal México, S.A. de C.V. was received on a claim of US$13.2 M (San Francisco, Sonora).

ON SOCIAL RESPONSIBILITY

  • No Relevant News.

On the image below: Quartz specularite veining cut by late quartz veinlet on a copper project in the Sonoran Desert. Picture by Abraham López.

The Mining and Exploration News in Mexico: Highlights on the First Week of February 2023

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By Jorge Cirett

During the 5th week of the year (January 30th to February 5th, 2023), 15 companies working in Mexico released news on their properties. One company informed on metallurgical results from its project, one company posted consolidated 2022 production and three companies provided updates on 2022 work on their properties and plans for 2023. One company began trading on the OTCQB in USA and two companies are to undertake private placements. Three companies informed on drilling results and work on their advanced properties, one other on the signing of an option agreement on the acquisition of a property and one more provided its bi-weekly status report. ON MEXICO ISSUES, mining companies are among the best compliers on environmental, social and governance strategies. ON EXPLORATION, in Chihuahua, Radius Gold informed on metallurgical results by associate Fresnillo PLC on its Plata Verde property. ON MINING, Altaley Mining provided an update on its 2023 plans for its Tahuehueto (Durango) and Campo Morado (Guerrero) properties. Minera Alamos informed on the late 2022 commercial production and some operational hurdles at its Santana project in Sonora. SilverCrest Metals released Q4 2022 production results and informed on relevant mining issues at Las Chispas, in Sonora. Capstone Copper presented 2023 production guidance for its Cozamin mine in Zacatecas. ON FINANCING, Excellon Resources commenced trading on the OTCQB in USA. GRSilver Mining and Reyna Silver are undertaking private placements for $3 M and C$4 M respectively. ON RESOURCES AND DEVELOPMENT, Orla Mining provided an update on 2022 exploration activities and plans for 2023 at its Camino Rojo project in Zacatecas, releasing impressive drill results from the sulfide zone. Alamos Gold released drilling results from Puerto del Aire deposit in the Mulatos project in Sonora, with the second highest gold intercept in Mexico on the last nine months. Oroco Resource announced drilling results from the South zone of the Santo Tomás project in Sinaloa. ON DEALS AND CORPORATE ISSUES, Aloro Mining signed an option agreement with Cuesta del Cobre to acquire the Quitovac project in Sonora. Gatos Silver complied with the by-weekly status report. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • According to Miranda Partners, mining companies are among the best positioned on environmental, social and governance strategies

ON EXPLORATION

  • Radius Gold Inc. informed on metallurgical results from its Plata Verde project in Chihuahua. Fresnillo PLC has an exclusivity agreement on the project since mid-2022 to negotiate an option agreement to earn a 70% interest in the project. Approximately 100 kg of bulk samples were collected from Mina Mojonera and Mina Real underground workings for metallurgical testing by cyanide leaching and flotation. The samples were classified as “soft” for ball mining, cyanide leach tests reported average 93% Ag recovery, “Flotation studies generate Pb/Cu concentrates with a high grade of silver and good values of lead and copper with recovery of around 85% for silver, 52% for lead and 64% for copper”, the combination of flotation + tailings cyanidation averaged 97% Ag recovery. “Galena is the main sulfide, which registered around 0.11% by weight, chalcocite 0.12%, and sphalerite, pyrite, chalcopyrite and arsenopyrite, which totaled around 0.06%, were detected to a lesser extent. As silver species, stromeyerite, argentite and a low proportion of AgHg were detected. Non-sulfur gangue represented 99.6% by weight mainly as baryte, calcite, albite, and quartz”.

ON MINING

  • Altaley Mining Corp. provided an update on its operations plans for 2023. At Tahuehueto, in Durango, a new consulting construction manager was appointed and recruiting of a new site general manager is in process. The construction of the initial 500 tpd operation is to be completed on 2Q23 and expansion to 1,000 tpd nameplate capacity operation on 4Q23. “Currently the mine is in pre-production, averaging 300 tpd”. At 1,000 tpd capacity the mine is projected to produce 42.8 K Oz AuEq per year, generating a yearly EBITDA of US$28.1 M. For the Campo Morado mine in Guerrero, plans have “strategically shifted focus” towards mining of higher-grade copper orebodies. Campo Morado EBITDA for 2023 is projected to be US$15.9 M. The company expects to progress on implementing recommendations made by Ausenco to improve plant performance at Campo Morado. The metals production for 2023 from Campo Morado is expected to be 15,433 tonnes Zn, 2,967 tonnes Cu, 2,142 tonnes Pb, 184 Kg Au (5,916 Oz Au), 25.8 tonnes Ag (829.8 K Oz Ag) while guidance at Tahuehueto is 1,903 tonnes Zn, 545 tonnes Cu, 1454 tonnes Pb, 289 kg Au (9,291 Oz Au), 6,258 kg Ag (201.2 K Oz Ag).
  • Minera Alamos Inc. informed on the completion in the second half of 2022 of the initial thresholds for commercial production at the Santana project in Sonora, including gold recovery rates from the heap leach pad and monthly mining rates. Final approvals for resubmitted applications are pending for the next phase of pad expansion and full access to the Nicho deposit. Due to water scarcity the company is giving priority at this time to pre-stripping activities, and competing work and plans to proceed with the expansion when the permits are received. The mine was built for US$10 M, most of which has been paid back by the operational performance, which has demonstrated the ability to operate at 10,000 tpd of ore and waste moving. Overall gold recoveries are above 70% for material under 45-60 days leach with residual leach ongoing.
  • SilverCrest Metals Inc. reported Q4 2022 operational results and an update on activities at its Las Chispas mine in Sonora, where commercial production was announced on November 1, 2022. During the quarter 104.3 K tonnes @ 3.67 gpt Au, 382 gpt Ag were processed, recovering 96.9% Au, 93.3% Ag to produce 11,940 Oz Au, 1.20 M Oz Ag (2.23 M Oz AgEq). Underground mining averaged 700 tonnes per day, with resue mining planned for some stopes currently being replaced either by cut and fill or long hole mining. Ore stockpiles stood at 261.6 K tonnes at the end of the period. The company expects to release an updated technical report on Q2 2023. At the end of the quarter cash and cash equivalents represented $50.8 M and total debt $50 M.
  • Capstone Copper Corp. announced consolidated copper production for 2022, without disclosing production by property. The 2023 guidance aims for production at the Cozamin mine in Zacatecas to be in the 23 to 25 K tonnes Cu, with a cash cost of $1.50 – $1.65 per Lb Cu, the lowest for all its operations in Arizona, Mexico and Chile.

ON FINANCING

  • Excellon Resources Inc. commenced trading on the OTCQB Venture Market in USA, while continuing to trade also at the Toronto Stock Exchange (La Negra, Hidalgo).
  • GRSilver Mining Ltd. proposes to undertake a non-brokered private placement to raise total gross proceeds of up to $3 M (Plomosas, Sinaloa).
  • Reyna Silver Corp. entered into an agreement with Eight Capital as lead underwriter and on behalf of a syndicate of underwriters in connection with a bought deal private placement financing for aggregate gross proceeds of C$4 M (Guigui and Batopilas, Chihuahua).

ON RESOURCES AND DEVELOPMENT

  • Orla Mining Ltd. provided an update on 2022 exploration activities at Camino Rojo in Zacatecas, and an overview on 2023 exploration plans. Drilling the Camino Rojo Sulfides returned good gold intercepts, of which the highlighted ones comprise 64.0 m @ 4.66 gpt Au; 79.0 m @ 2.76 gpt Au; 70.0 m @ 2.81 gpt Au; 87.0 m @ 1.92 gpt Au; 73.5 m @ 1.74 gpt Au; 40.5 m @ 3.83 gpt Au; 16.0 m @ 6.94 gpt Au; 37.0 m @ 3.78 gpt Au; 49.5 m @ 2.71 gpt Au. Drilling below the current mineral resource has identified feeder-like structures, with intersects of up to 22.9 m @ 4.02 gpt Au, 1.5% Zn. Drilling of regional targets has returned up to 7.10 m @ 0.54 gpt Au and 2.35 m @ 1.35 gpt Au at the Guanamero target area. “Further drilling is planned in 2023 to test for zones of oxidized mineralization that could potentially allow for local expansion of the oxide pit”. For the Camino Rojo sulfides zone, a 34,000 m of infill drilling in 57 holes is planned, with 20% to test the deep potential, and 6,500 m more on extensions to the Oxide zone to expand resources. On regional exploration, 15,000 to 20,000 of RC drilling and 2,000 to 5,000 m of core drilling are planned to test multiple targets.
  • Alamos Gold Inc. reported results from surface exploration drilling at Puerto del Aire (PDA), an underground deposit within the Mulatos project in Sonora. Highlighted true width intervals comprise 25.95 m @ 33.40 gpt Au (an impressive 866.7 gpt*m); 3.25 m @ 67.58 gpt Au; 6.20 m @ 18.33 gpt Au; 1.50 m @ 75.50 gpt Au; 2.35 m @ 36.50 gpt Au; 1.40 m @ 60.20 gpt Au; 6.75 m @ 11.16 gpt Au; 9.00 m @ 6.73 gpt Au. The results extend high-grade Au mineralization outside the resource zone that holds 556 K Oz Au in reserves and resources grading close to 5 gpt Au. Since the last mineral resource estimate was released on the PDA deposit in 2021, 92 drill holes totalling 27,117 m have been completed. The $17 M exploration budget at Mulatos includes $4 M for drilling focused on expanding resources at PDA.
  • Oroco Resource Corp. announced drilling results from the South zone at its Santo Tomás project in Sinaloa. The 2 km long zone is subdivided in three segments: northern, middle and southern, with the current drilling reported from the middle and southern segments. Highlighted core length results, that are reported to be within 10% of true width, comprise 127.0 m @ 0.37% Cu, 0.049 gpt Au; 146.6 m @ 0.37% Cu, 0.073 gpt Au; 82.0 m @ 0.37% Cu, 0.032 gpt Au; 146.0 m @ 0.24% Cu, 0.014 gpt Au; 66.0 m @ 0.26% Cu, 0.009 gpt Au, 180 ppm Mo; 47.0 m @ 0.35% Cu, 0.018 gpt Au, 80 ppm Mo; 179.2 m @ 0.36% Cu, 0.022 gpt Au, 200 ppm Mo; 349.1 m @ 0.36% Cu, 0.027 gpt Au, 60 ppm Mo; 187.9 m @ 0.51% Cu, 0.038 gpt Au, 120 ppm Mo; 234.3 m @ 0.34% Cu, 0.017 gpt Au, 120 ppm Mo. Drilling on the southern zone segment has intersected western dipping dikes and mineralization, overprinted by hydrothermal breccia bodies and a wide array of stockwork vein and fracture mineralization.

ON DEALS AND CORPORATE ISSUES

  • Aloro Mining Corp. signed an option agreement with Cuesta del Cobre S. de R.L. de C.V. to acquire the Quitovac project in Sonora. The terms include cash and shares amounts of $35 K, 200 K shares within 30 days of approval; $45 K and 200 K shares on year one; $55 K and 200 K shares on year two; $65 K and 200 K shares on year three; $75 K and 300 K shares on year four; $100 K and 400 K shares on year five; $200 K and 500 K shares on year six. The project covers 2,644 hectares with 14 claims, with the orogenic gold mineralization having been tested with 12,450 m of drilling in 100 holes by four companies between 1987 and 2012.
  • Gatos Silver Inc. provided the bi-weekly status report in accordance with National Policy 12-203-Management Cease Trade Orders. Ernst & Young LLP was appointed on November 14, 2022 as the company’s independent registered public accounting firm. “The Company expects all delayed filings, including the audit of the financial statements required to be included in its annual report on Form 10-K for the year ended December 31, 2021, and the reviews of its quarterly reports on Forms 10-Q for the quarters ended March 31, 2022, June 30, 2022 and September 30, 2022, to be completed before the end of the first quarter of 2023” (Cerro Los Gatos, Chihuahua).

ON SOCIAL RESPONSIBILITY

  • No Relevant News.

On the image below: Quartz specularite vein on a copper project in the Sonoran Desert. Picture by Abraham López.

The Mining and Exploration News in Mexico: Highlights on the First Week of January 2023

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By Jorge Cirett

During the 1st week of the year (January 2nd to January 8th, 2023), 11 companies working in Mexico released news on their properties. No companies posted on exploration of non-advanced properties, one company posted on Q4 2022 production figures (that’s fast reporting!), no companies reported financing news. Seven companies informed on work at their advanced properties, including three that released drilling results. One mining company is dealing with uncertainty on operation rules, as SEMARNAT insists on not upholding previously emitted permits. Another company informed on an extension to an agreement for the processing of tailings. ON MEXICO ISSUES, no relevant news. ON EXPLORATION, no relevant news. ON MINING, Bear Creek Mining presented production figures for the Mercedes mine in Sonora. ON FINANCING, no relevant news. ON RESOURCES AND DEVELOPMENT, Zacatecas Silver filed a technical report with their initial mineral resource estimate for the Esperanza project in Morelos. Aztec Minerals updated on 2022 work at Cervantes in Sonora, and plans for 2023. GoGold Resources provided an outlook for work at Los Ricos Sur and Los Ricos Norte projects in Jalisco during 2023. Impact Silver released drilling results from two new veins in Zacualpan, Estado de Mexico. Avino Silver released drilling results from the Avino vein in Durango. Bendito Resources is to perform a reverse circulation drilling campaign at several targets on its El Alacrán project in Sonora. Minera Alamos filed a PEA on the Cerro de Oro project in Zacatecas. ON DEALS AND CORPORATE ISSUES, Fortuna Silver received notice from SEMARNAT on the re-assessment of the environmental impact authorization for the San Jose mine in Oaxaca. Xali Gold extended the production earn-in agreement with Sun River on the Tailings Project at El Oro, in Estado de Mexico. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • No Relevant News.

ON EXPLORATION

  • No Relevant News.

ON MINING

  • Bear Creek Mining Corp. presented production figures for Q4 2022 from its Mercedes mine in Sonora. During the period, 13,710 Oz au, 40.2 K Oz Ag were produced, and a new high-grade vein was discovered at the Marianas zone. “Development work is ongoing in the Marianas, Rey de Oro and San Martin zones. There are approximately 80 meters of development required in Marianas to establish underground drilling station, Bay 5, and prepare for ore production from this zone”. Highlighted core length intercepts comprise 0.8 m @ 89.1 gpt Au, 192 gpt Ag; 3.5 m @ 5.8 gpt Au; 3.6 m @ 13.1 gpt Au in new veins and 0.9 m @ 26.2 gpt Au, 23 gpt Ag in an extension to a known vein.

ON FINANCING

  • No Relevant News.

ON RESOURCES AND DEVELOPMENT

  • Zacatecas Silver Corp. filed a Ni-43-101 compliant technical report supporting the initial mineral resource estimate at the Esperanza project in Morelos. The resources consist of 30.3 M tonnes @ 0.92 gpt Au, 8.6 gpt Ag in pit-constrained measured and indicated resources containing 899 K Oz Au, 8.4 M Oz Ag, and 270 K tonnes @ 1.58 gpt Au, 11.0 gpt Ag in out of pit measured and indicated resources containing 14 K Oz Au, 96 K Oz Ag. Pit-constrained inferred mineral resources stand at 8.3 M tonnes @ 0.86 gpt Au, 14.7 gpt Ag, containing 229 K Oz Au, 3.9 M Oz Ag and out of pit inferred mineral resources stand at 479 K tonnes @ 1.77 gpt Au, 11.8 gpt Ag, containing 27 K Oz Au, 182 K Oz Ag. The resource estimate was calculated with 69,924 m of drilling in 399 holes, of which 341 intersect the modelled resource.
  • Aztec Minerals Corp. updated on work completed in 2022 and its outlook for 2023 at the Cervantes project in Sonora. During the year ownership interest of the Cervantes project was consolidated to 100%, two phases of drilling were completed continuing to expand the area with broad widths of oxide mineralization. For 2023 surface mapping and channel sampling are to be conducted on the first quarter to continue with step out drilling on the California target and additional targets.
  • GoGold Resources Inc. provided an outlook for 2023 at its Los Ricos North and Los Ricos Sur properties in Jalisco. Continued aggressive drilling at Los Ricos South is planned, with the goal of producing an updated mineral resource estimate and a preliminary economic assessment (PEA) including the effects of drilling at the Eagle concession, underground exploration and development and the completion of a pre-feasibility study (PFS). At Los Ricos Norte the company will work to complete the preliminary economic assessment (PEA). GoGold “holds 45 concessions covering over 25,000 hectares in the Los Ricos district”.
  • Impact Silver Corp. released significant results from surface drilling in 2022 at the Royal Mines of Zacualpan area in Estado de Mexico. Core-length results from La Luz and San Antonio greenfields targets with man portable diamond rigs comprise 1.70 m @ 227 gpt Ag, 0.2% Pb, 0.2% Zn; 0.77 m @ 113 gpt Ag, 1.0% Pb, 2.8% Zn; 1.68 m @ 239 gpt Ag; 1.60 m @ 0.6% Pb, 2.5% Zn; 3.85 m @ 0.51 gpt Au, 18 gpt Ag, 0.6% Pb, 2.3% Zn; 1.25 m @ 0.15 gpt Au, 85 gpt Ag, 0.5% Pb, 1.7% Zn; 2.18 m @ 0.30 gpt Au, 38 gpt Ag, 0.3% Pb, 2.0% Zn; 3.50 m @ 1.59 gpt Au, 22 gpt Ag, 0.1% Pb, 1.0% Zn; 2.30 m @ 0.42 gpt Au, 11 gpt Ag, 0.2% Pb, 6.2% Zn; 1.95 m @ 30 gpt Ag, 2.6% Pb, 1.9% Zn; 1.35 m @ 35 gpt Ag, 2.8% Pb, 4.2% Zn; 1.54 m @ 0.24 gpt Au, 24 gpt Ag, 0.4% Pb, 2.8% Zn; 3.0 m @ 1.90 gpt Au, 11 gpt Ag, 0.3% Pb, 0.7% Zn. “Drilling is continuing with IMPACT’s underground rig in the Mina Grande mine located in the Cuchara area and field exploration is continuing on multiple targets”.
  • Avino Silver & Gold Mines Ltd. released drilling results on four holes from below the deepest current level at the Avino mine in Durango. This drilling extends downdip 315 m the Avino Vein, to 800 m of known downdip length to 600 m below the surface. Highlighted true-width drill intervals comprise 16.66 m @ 0.03 gpt Au, 26 gpt Ag, 1.63% Cu (including 8.57 m @ 0.04 gpt Au, 34 gpt Ag, 2.49 gpt Cu); 23.64 m @ 0.06 gpt Au, 23 gpt Ag, 0.34 % Cu; 5.82 m @ 0.23 gpt Au, 22 gpt Ag, 0.36% Cu; 1.10 m @ 2.46 gpt Au, 9 gpt Ag, 0.3% Cu; 3.0 m @ 0.38 gpt Au, 13 gpt Ag, 0.72% Cu. An updated mineral resource estimate is scheduled for Q1 2023. “The Property contains numerous low-sulphidation epithermal veins (including the Avino vein), breccias, stockworks, and silicified zones that grade into a possible ´near porphyry´ environment within a large caldera setting…… The direction of the increasing copper grade plunges towards the east in the Avino vein. The changing tenor of the mineralization could be reflecting a transition from epithermal to porphyry-style mineralization”.
  • Bendito Resources Inc. is to commence drilling on the second week of the year at its Alacrán project in Sonora. Approximately 2,000 m of reverse circulation drilling on the southern extension of Loma Bonita (Au) and Mesa de Plata (Ag) towards the San Simón target, with some copper targets also to be tested. “The additional drilling on Gregors will help with the understanding of the copper mineralization and the porphyry to-epithermal transition interpreted for Alacrán…. Phase 1 drilling program is designed to target geophysical anomalies derived from induced polarization, EM and magnetic helicopter surveys that indicate the presence of sub-horizontal silica layers with steeply dipping and high-grade hydrothermal breccia feeders”. Other goals include the step-out drilling near previous high-grade copper intercepts on chalcopyrite rich hydrothermal breccia.
  • Minera Alamos Inc. filed the preliminary economic assessment (PEA) and mineral resource estimate for the Cerro de Oro project in Zacatecas. The project envisages an 8.2 year mine life on initial mineable 59 M tonnes @ 0.37 gpt Au, mined at 20 K tonnes per day to produce 60 K Oz Au per year during the first four years and a total of 477 K Oz Au on the mine life, with an average all-in sustaining cost (AISC) of US$873 per Oz Au. Other figures include a waste/ore ratio of 0.3, a pre-production cost of $28.1 M and an 11 months payback period. 

ON DEALS AND CORPORATE ISSUES

  • Fortuna Silver Mines Inc. reports that it has received notice of a resolution by SEMARNAT (Environmental Regulator) on which informs that SEMARNAT is re-assessing the 12-year extension to the environmental impact authorization for the San Jose mine in Oaxaca, granted in December 2021. “Subsequent to the grant of the EIA Extension on December 16, 2021, SEMARNAT suggested that it had made a typographical error in the EIA Extension and that the correct term was two years……. Minera Cuzcatlan initiated legal proceedings to challenge and revoke the alleged typographical error, and on November 7, 2022, the Company announced that the Mexican Federal Administrative Court had issued a judgment in favour of the Company and re-confirmed the term of the EIA Extension for the San Jose Mine for a period of 12 years”.
  • Xali Gold Corp. extended the production earn-in agreement with Sun River Gold Corp. on the El Oro Tailings project in Estado de Mexico, in exchange for additional advanced Net Profits Interest (NPI) payments. The third extension on the expiry date to the end of December 2023 is under the following terms: continuation of advanced NPI payments of US$15 K per month, advanced payments of US$35 K in January 2023, US$50 K in June 2023, US$75 K within 20 days of receiving financing for construction. If an additional 6 months is required and Xali Gold is satisfied with permitting status, then a US$75 K is to be made. As part of the second extension previously granted Xali Gold will also receive advanced NPI payments of US$50 K per month for the first year of commercial operations and 5% NPI payments subsequently, and “the first $1.5M of the Municipality NPI owing to Xali Gold will now be paid during the first 3 years of operation”. The Tailings Project at El Oro contains an inferred resource of 1.27 M tonnes @ 2.94 gpt Au, 75 gpt Ag, containing 119,900 Oz Au, 3.06 M Oz Ag.

ON SOCIAL RESPONSIBILITY

  • No Relevant News.

On the image below: Historic tunnel on a copper project in the Sonoran Desert. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the Fourth Week of December 2022

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By Jorge Cirett

During the 51st week of the year (December 19th to December 25th, 2022), 10 companies working in Mexico released news on their properties. One company posted an exploration update on its property, one on financial results for the end of its fiscal year, one informed on a rolling stock plan and another one on the repurchase share plan. One company informed on work at its advanced property. December proved to be a busy month for deals, with four more companies announcing this week the purchase of properties, strategic investments or royalty purchases.  ON MEXICO ISSUES, CAMIMEX presented its third 2022 sustainability report. ON EXPLORATION, in Sonora, Colibri Resource announced plans for a bulk sample program at the Pilar project. ON MINING, GoGold Resources released financial results for the end of its fiscal year. ON FINANCING, Oroco Resource approved a rolling stock plan. Alamos Gold announced its share repurchase plan. ON RESOURCES AND DEVELOPMENT, Guanajuato Silver Company provided drilling results from its Topia mine in Durango. ON DEALS AND CORPORATE ISSUES, Prismo Metals and Vizsla Silver entered into a binding strategic investment agreement. Southern Empire Resources announced the staking of a large property in Durango, and the staking of additional ground adjacent to one other project, also in Durango. Silver Viper Minerals and Canasil Resources extended the date for the definitive agreement on their merger/acquisition. Metalla Royalty & Streaming announced a royalty purchase agreement concerning the silver stream from the Esperanza project in Morelos. ON SOCIAL RESPONSIBILITY, The Esperanza project in Morelos incorporates the sustainable development concept, promoted on the UN’s 2030 agenda.

ON MEXICO ISSUES

  • CAMIMEX (Cámara Minera de Mexico) presented its third report on sustainability 2022, expanding on actions and results by its affiliates on social, environment and economic matters, as part of its compromise to further the sustainable development of México.     

ON EXPLORATION

  • Colibri Resource Corp. reported that its option partner on the Pilar project in Sonora, Tocvan Ventures Corp. is to complete a bulk sample test at the property. Up to 1,000 tonnes of material will be processed in a neighboring mining company heap leach facilities 25 km west from Pilar. “Total duration of the processing and analysis of the bulk sample is expected to span three to four months. The information provided from the sample will be used for planning in coordination for permitting of full-scale mine and process facilities on-site at Pilar“.

ON MINING

  • GoGold Resources Inc. announced the financial results for the year ending on September 30, 2022. During the period $36.1 M in revenue were generated on the sale of 1.7 M Oz AgEq from its Parral tailings project in Chihuahua; the metal was produced at cash cost $13.35 per Oz AgEq, and an AISC of $18.36. Also, USD$12.3 M of tax recoverable relating to VAT receivable were recovered from the Mexican Federal Government, including $5.1 M in interest.  At the end of the period GoGold balance was $73.3 M in cash and no debt.

ON FINANCING

  • Oroco Resource Corp. shareholders approved a maximum of 10% rolling stock option plan for the company (Santo Tomás, Sinaloa).
  • Alamos Gold Inc. filed and received acceptance from the Toronto Stock Exchange (TSX) for a notice of intention to make a normal course issuer bid, permitting Alamos to purchase for cancellation up to 10% of the company’s public float of the common shares as of December 2022 (Mulatos, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Guanajuato Silver Company Ltd. provided recent drill results from the Topia mine in Durango. The company is focusing on delineating resources and increasing mine life on the La Prieta, Rosario and Dos Amigos structures. Highlighted true width intercepts comprise 0.43 m @ 1.22 gpt Au, 455 gpt Ag, 1.4% Pb, 2.1% Zn; 0.81 m @ 1.38 gpt Au, 42 gpt Ag, 4.0% Pb, 2.0% Zn; 1.09 m @ 373 gpt Ag, 1.3% Pb, 0.4% Zn; 0.50 m @ 1.73 gpt Au, 394 gpt Ag, 0.9% Pb, 0.3% Zn; 0.60 m @ 944 gpt Ag, 9.2% Pb, 4.2% Zn; 1.55 m @ 206 gpt Ag, 1.2% Pb, 2.8% Zn; 0.20 m @ 9.74 gpt Au, 404 gpt Ag, 7.2% Pb, 1.9% Zn; 0.50 m @ 3.98 gpt Au, 808 gpt Ag, 8.1% Pb 4.4% Zn; 1.12 m @ 1.74 gpt Au, 39 gpt Ag, 3.4% Pb, 0.7% Zn; 0.98 m @ 4.48 gpt Au, 107 gpt Ag, 8.0% Pb, 13.7% Zn; 1.15 m @ 3.38 gpt Au, 2,173 gpt Ag, 6.7% Pb, 12.9% Zn. “Epithermal mineralization at Topia exists as a system of narrow, high-grade veins measuring up to 1.50m in thickness and occurring within an undulating band of mineralized material that ranges vertically from 100m to 200m, within a lateral extension continuing for several kilometers”.

ON DEALS AND CORPORATE ISSUES

  • Prismo Metals Inc. entered into a binding strategic investment agreement with Vizsla Silver Corp. Pursuant to the agreement Vizsla is to acquire C$2 M in shares of Prismo, and will have the right of first refusal to purchase the Palos Verdes project from Prismo. Once the investment is complete, Vizsla will own 10.1% of Prismo on a basic basis and 14.4% on a partially diluted basis.
  • Southern Empire Resources Corp. announced the staking of the 23,750 hectare La Loma property in Durango, located 50 km SE from its San Pedro project. The property covers Mesozoic sedimentary rocks with Au-As-Sb-Mo-Pb anomalies in stream sediment samples by the Servicio Geológico Mexicano (SGM). Planned exploration work for the spring of 2023 includes stream sediment sampling, prospecting and geological mapping. The company also expanded the optioned 600 ha Centauro property in Durango by staking two claims totaling 3,832 ha. The new claims cover areas of silica and kaolinite alteration, as identified with hyperspectral satellite images. “These suites of probable alteration mineralization are often spatially associated with “Carlin-style” and/or low sulphidation epithermal gold mineralization observed at Centauro to date”.
  • Silver Viper Minerals Corp. entered into an agreement to amend the non-binding letter of intent with Canasil Resources Inc. with respect to the proposed acquisition of all of the issued and outstanding shares of Canasil, in exchange for common shares of Silver Viper, extending the date to enter into a definitive agreement from December 20, 2022 until January 31, 2023 (La Virginia, Sonora; Esperanza, Zacatecas).
  • Metalla Royalty & Streaming Ltd. announced a royalty purchase agreement with Alamos Gold Corp., pursuant to which Metalla will acquire from Alamos Gold one silver stream and three royalties for $5 M of common shares of Metalla. The portfolio adds a silver stream on the Esperanza Gold project in Morelos, which is being advanced by Zacatecas Silver Corp. The project envisions the mining by open pit of an oxidized Au-Ag skarn to produce 111 K Oz Au and 225 K Oz Ag per year. “Metalla will acquire the 20% silver stream on Esperanza subject to ongoing payments of 20% of silver spot price. The stream is subject to a maximum of 500 K Oz silver delivery if commercial production occurs prior to 2029. Metalla will also acquire the right of first refusal on future royalty and stream financing for the Esperanza project”.

ON SOCIAL RESPONSIBILITY

  • Camimex informed that the Esperanza mining project in Morelos, on the grounds of the San Agustín Tetlama community incorporates the sustainable development concept, promoted on the UN’s 2030 agenda, with social, environmental, cultural and economic procurement plans.

On the image below: Underground historic workings scanning by geologist Abraham López with an iPhone on a project in the Sonoran Desert. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the Second Week of December 2022

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By Jorge Cirett

During the 49th week of the year (December 5th to December 11th, 2022), 15 companies working in Mexico released news on their properties. Two companies posted exploration updates on their properties, two more companies informed on private placements, while one signed a concentrate pre-payment facility and two companies updated on work at its advanced properties. On a busy week for deals, four companies announced agreements on the purchase of five properties.  ON MEXICO ISSUES, a tit for tat of declarations between the Secretaría de Economía and Camimex reflected the state of affairs between the government and the mining industry for the last four years. ON EXPLORATION, in Sonora, Colibri Resource recommenced drilling at Evelyn. In Jalisco, Almadex Minerals released drilling results at San Pedro. ON MINING, no relevant news. ON FINANCING, Prismo Metals and Silver Viper informed on their private placements for $3 M and $335 K respectively. Guanajuato Silver Company informed on a new $5 M concentrate pre-payment facility. ON RESOURCES AND DEVELOPMENT, Torex Gold released drilling results from El Limón Sur Deep drilling, including the highest grade-m interval for Mexico so far in the year. Endeavour Silver released a new resource estimate for its La Pitarrilla project in Durango. ON DEALS AND CORPORATE ISSUES, Argonaut Gold and Heliostar Metals signed agreements for the purchase of the Ana Paula and San Antonio projects, in Guerrero and Baja California Sur respectively. Prime Meridian Resources optioned the Chuin project in Sonora from private vendors. Capitan Mining optioned from Fresnillo PLC a mining concession adjacent and in projection of mineralization at its Cruz de Piedra project in Durango. Golden Tag Resources is to acquire First Majestic Silver’s La Parrilla project in Durango. ON SOCIAL RESPONSIBILITY, one company informed on the receipt of an award in environmental and sustainability compliance.

ON MEXICO ISSUES

  • According to IMSS (Instituto Mexicano del Seguro Social) there are 421,833 mining industry direct employees in Mexico, same that in 2021 generated 2.5% of the GDP, or 34,782 million pesos (US$16.5 billion dollars). The country is within the ten top producers of fluorite, sodium sulfate, wollastonite, celestite, lead, molybdenum, barite, diatomite, magnesium sulfate, zinc, salt, gypsum, cadmium, gold, feldspar and copper, and the top silver producer during the last 13 years. Workers in the industry earn an average of 23,366 pesos per month.     
  • Camimex (Cámara Minera de México) expects Mexico’s investment in mining to surpass US$5 billion (5,000 million pesos). Jaime Gutiérrez, president, pointed that it occurs under the contrast of high metal prices and national policy regulatory hurdles. Karen Flores, director, expressed that the risk in mining is major in exploration, diminishing as the project advances to the mining stage. Another obstacle is the discretionary granting of permits, highlighting the need of a clear and objective decision-making process. Stressed also was the need to have public policies that favor the investments in clean energies, as these are crucial for the competitiveness of the country.
  • Raquel Buenrostro, head of the Economy Secretariat (Secretaría de Economía or SE) indulged herself in a barrage of accusations to the mining industry, pointing that it pays nearly zero taxes in proportion to its earnings, and is one of the industries with more corruption related to the Secretaría de Economía. She indicated that this is one of the reasons why the government has not granted mining concessions for the last four years, further adding that mining companies are no innocent entities, having problems the World around. “After hydrocarbons, the strongest smuggling is that of mining” she stressed, “more than textiles, shoes and clothing”. According to her numbers, mining companies pay 0.002% of its total earnings, compared to 2.4% of major contributors or between 30 and 35% for employees. She also commented on the case of a foreign company that using a twisted argument decided not pay taxes for ten years, while the case if reviewed by the Supreme Court. “Concessions, concessions and concessions were granted, some without complying with the law, some granted more than once, and those who have concessions do not comply with the obligations that should be covered…. the problem of corruption is strong, and I believe that this is one of the areas with biggest corruption problems in the Secretaría de Economía (Note of editor. The points of view of Raquel Buenrostro mimic those of the president, Andrés Manuel López Obrador, which is strongly critical of all private industries, including mining. More than a decade ago, while bidding for the presidency, he had expressed that no mining concessions were to be issued under his term. He’s true to his word, at least in this respect).
  • Camimex (Cámara Minera de México) replied to Raquel Buenrostro, Secretary of Economy (See above) that the companies affiliated to the entity comply in time with its fiscal obligations, including special taxes that only miners pay. The mining industry conveys more resources for the federal coffers than other productive sectors, according to information from the Secretaría de Hacienda y Credito Público. Camimex argues that its enterprises generate more than 400 K direct jobs, and 2.6 M indirect jobs, with an average salary that is 37% higher than the national one. Also, studies by UNAM (Universidad Autónoma de México) show that the municipalities and localities with mining activity have greater levels of economic and human development than the national average. The letter ended “We miners are proud of our activities, the responsible and committed companies in Camimex will continue contributing to the economic development and social wellbeing in the country. We reiterate our commitment and absolute will and interest to establish the dialogue and collaboration with the authorities that are conducive to the strengthening of the sector and the country”.

ON EXPLORATION

  • Colibri Resource Corp. re-commenced phase-2 reverse circulation drilling at the Evelyn property in Sonora. Five holes are planned with 2,000 m of drilling to test induced polarization targets from the 2021 geophysical survey, a second objective is to explore under extensive alluvial cover drilling a number of short holes and sample the top of the bedrock. A soil sampling program has been recently completed, and samples sent for “Gas Soil Hydrocarbon” testing.
  • Almadex Minerals Ltd. released drilling results from its first hole at the San Pedro project in Jalisco. The highlighted core length interval is 4.51 m @ 657 gpt Ag, 0.03 gpt Au (including 2.0 m @ 1,090 gpt Ag, 0.07 gpt Au). Almadex describes a breccia with silicified fragments in sericitic alteration, with galena and sphalerite occurring in the matrix and in fragments. These characteristics point to an intermediate sulfidation epithermal system, although other options have not been ruled out at this stage. “The San Pedro project covers a large area of acid sulphate alteration, including zones previous described as vuggy silica. Recent Terraspec analysis indicates sericitisation superposed on propylitic alteration in the mineralised zones with acid sulphate alteration occurring at the north”.

ON MINING

  • No Relevant News.

ON FINANCING

  • Prismo Metals Inc. announced that the private placement for up to $3 M has been fully allocated.  (Palos Verdes, Sinaloa).
  • Guanajuato Silver Company Ltd. signed a new concentrate and pre-payment facility with Ocean Partners Ltd., to provide a US$5 M revolving credit facility for operating and working capital purposes. GSilver also completed its previously announced shares-for-debt transaction to settle C$1.13 M (El Cubo, Guanajuato).
  • Silver Viper Minerals Corp. closed the first tranche of its $2 M private placement announced in November, for aggregate gross proceeds of $334.6 K (La Virginia, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Torex Gold Resources Inc. reported assays results from step-out and infill drilling at El Limón Sur, targeting underground mineralization as well as open pit mill feed at its El Limón Guajes mine complex in Guerrero. Highlighted core length results comprise 15.96 m @ 87.60 gpt Au, 15 gpt Ag; 0.15% Cu (including 4.46 m @ 163.51 gpt Au, 21 gpt Ag and 3.82 m @ 166.94 gpt Au, 23 gpt Ag, 0.20% Cu); 22.81 m @ 25.31 gpt Au, 122 gpt Ag, 3.45% Cu (including 3.00 m @107.63 gpt Au, 259 gpt Ag, 6.18% Cu); 20.52 m @ 9.49 gpt Au, 63 gpt Ag, 0.21% Cu; 18.72 m @8.10 gpt Au, 24 gpt Ag, 0.95% Cu; 9.90 m @ 15.19 gpt Au, 43 gpt Ag, 0.56% Cu; 17.85 m @ 13.39 gpt Au (including 2.25 m @ 90.05 gpt Au); 7.70 m @ 22.99 gpt Au, 8 gpt Ag, 0.18% Cu; 3.99 m @ 43.24 gpt Au, 25 gpt Ag. These strong results add the El Limón Sur Deep to the previously identified potential mining front at Sub-Sill South. “The style of mineralization at El Limón Sur Deep is like Sub-Sill and ELD, and is characterized by gold, with locally high silver and copper grades. Gold occurs in variably sulfidized, pyrrhotite-rich skarn, while silver and copper mineralization is controlled primarily by the degree of sulfidation of the host skarn. Mineralization is mainly associated with retrograde alteration characterized by the occurrence of phlogopite, amphibole, chlorite, calcite and lesser amounts of quartz and epidote, and local magnetite”.
  • Endeavour Silver Corp. filed a NI-43-101 technical report with a resource estimate for the recently acquired (July 2022) La Pitarrilla project in Durango. Total indicated resources, open pit and underground, oxide and sulfide, stand at 158.6 M tonnes @ 96.4 gpt Ag, 0.31% Pb, 0.74% Zn, containing 491.6 M Oz Ag, 1.1 billion Lb Pb, 2.6 billion Lb Zn or 693.9 M Oz AgEq. Inferred resources, open pit and underground, oxide and sulfide, comprise 35.4 M tonnes @ 87.2 gpt Ag, 0.36% Pb, 0.85% Zn, containing 99.4 M Oz Ag, 281 M Lb Pb, 662 M Lb Zn or 151.2 M Oz AgEq.

ON DEALS AND CORPORATE ISSUES

  • Argonaut Gold Inc. entered into a binding purchase agreement with Heliostar Metals Ltd. for the sale of the Ana Paula project in Guerrero. The deal involves a cash payment of US$10 M at closing, US$5 M in Heliostar shares when either an extension to the current mining permit or a new underground mining permit is granted, US$2 M on the completion of a feasibility study (FS), US$3 M in cash and US$2 M in shares on construction announcement and US$5 M in cash and US$3 M in Heliostar shares on announcement of commercial production.
  • Argonaut Gold Inc. entered into an option agreement with Heliostar Metals Ltd. for the sale of the San Antonio project in Baja California Sur. Heliostar is to pay Argonaut US$80 M if the gold price is below $1,800 per ounce for the six months preceding the exercise of the option, US$120 M if the price is in the US$1,800 to US$2,000 per ounce range in the same period, or US$150 M if the gold price is above US$2,000 per ounce in the said period. A 2.0% NSR is to be paid to Argonaut if the option is exercised. The term of the option is for three years, that can be extended for 18 months if Heliostar is able to acquire an environmental permit from SEMARNAT, the environmental regulator (Note of editor. – which is unlikely to occur on this presidential term, ending in 2024).
  • Prime Meridian Resources Corp. executed two letters of intent for the option to purchase up to 100% interest in the 3,792-hectare El Chuin copper project in Sonora. The project encompasses an interpreted porphyry copper target, with small scale mine workings developed in veins, disseminations and replacement style mineralization. The main target areas are Samaniego, La Gloria and Nogales. The option envisages the payment of US$30 K on year one, US$50 K and 250 K shares on year two, US$50 K and 500 K shares on year three, US$50 K and 1 M shares on year four and US$50 K and 1.5 M shares on year five, for a total of US230 K and 3.25 M shares, plus US$2.22 M of investment on the property. The current property owner retains a 1% NSR that can be bought for US$1.5 M. A second purchase option requires the payment prior to the 5th year anniversary of US$250 K for the La Gloria concession, US$250 K for La Gloria II concession and US$1 M for the Nino Luis concessions. “The El Chuin concessions are currently not in good standing and PMR will be obliged to bring the concessions to good standing. No payments to the vendors will be made prior to obtaining good standing for the concessions”.
  • Capitan Mining Inc. executed an option agreement with Fresnillo PLC to acquire 100% interest in mineral rights to a key property at the Cruz de Plata project in Durango. The high-grade silver trend owned by Capitan is now 2.5 km in length, including extensions and targets on the Jesus Maria, San Rafael, El Tubo, El Refugio and Teresa veins. The optioned land holds 2,000 m of historic drilling in five holes with highlighted core length intervals of 1.0 m @ 233 gpt Ag, 0.1%Pb; 5.2 m @ 185 gpt Ag, 0.29 gpt Au, 0.90% Pb, 1.7% Zn; 29.0 m @ 55 gpt Ag, 0.14 gpt Au, 0.2% Pb, 0.6% Zn (including 1.3 m @ 284 gpt Ag, 0.43 gpt Au, 1.6% Pb, 5.5% Zn); 6.3 m @ 94 gpt Ag, 0.2% Pb, 0.4% Zn; 4.7 m @ 54 gpt Ag, 0.7% Pb, 1.2% Zn; 1.2 m @ 157 gpt Ag, 0.12 gpt Au, 1.1% Pb, 3.3% Zn. The deal involves a 3-year exploration agreement for the “Casco U” mining concessions, for a total of US$1.0 M over the period and 1% NSR which can be bought for US$1 M.
  • Golden Tag Resources Ltd. entered into a definitive agreement with First Majestic Silver Corp. to acquire 100% interest on La Parrilla project in Durango. The property covers 69,478 hectares, with five underground mines, an open pit and a processing plant comprising parallel 1,000 tpd flotation and 1,000 tpd cyanidation leach circuits where oxide and sulfide ores can be processed. There are 9.5 M Oz AgEq in measured and indicated historical resources and 12.5 M Oz AgEq in inferred resources. In consideration for the purchase Golden Tag will issue First Majestic US$20 M in Golden Tag shares, and US$2.7 M in the first 18 months, US$5.75 M (cash or shares) when either 5 M Oz AgEq of reserves or 22 M Oz AgEq of measured and indicated resources are declared. And US$5.05 M (cash or shares) when a new zone with a NI-43-101 report holding more than 12.5 M Oz AgEq is announced. After closing First Majestic will have the right to maintain its pro-rata interest in Golden Tag, up to 19.9% of shares.

ON SOCIAL RESPONSIBILITY

  • Hecla Mining Co. received the 2022 Environmental and Sustainability Excellence Award for its San Sebatian mine in Durango. The award by the American Exploration & Mining Association (AEMA) is in recognition by the company’s strong commitment to the highest environmental and sustainability standards.

On the image below puzzling boudin like siliceous bands in limestone on a project in the Sonoran Desert. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the Fourth Week of November 2022

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By Jorge Cirett

During the 47th week of the year (November 21st to November 27th, 2022), 14 companies working in Mexico released news on their properties. One company declared share dividends, one more the partial repayment of two loan facilities and one more the intention to settle a debt with shares. Four companies updated on work at its advanced properties. One company announced the agreement to pursue an option in another company’s property.  ON MEXICO ISSUES, the AIMMGM pointed that Mexico is a mining country, but that it has neglected to inform of the goods of the trade. Arcelor Mittal announced a significant investment at the Las Truchas iron mine in Michoacan. ON EXPLORATION, In Sonora, Radius Gold informed on work at Maricela. In Chihuahua, Radius Gold updated in work at Amalia and Plata Verde projects, with JV’s partners Pan American Silver and Fresnillo respectively. ON MINING, Discovery Silver, Impact Silver and Guanajuato Silver Company released Q3 2022 production and/or financial results. ON FINANCING, Alamos Gold declared a quarterly dividend per share. Guanajuato Silver Company announced the partial repayment of two loan facilities. Defiance Silver is to settle a $41.9 K debt through the issuance of shares. ON RESOURCES AND DEVELOPMENT, Discovery Silver released results from drilling at Cordero, in Chihuahua. GR Silver Mining informed on results from drilling at the SE zone of the San Marcial project in Sinaloa, with an impressive silver intercept of 185.5 m @ 111 gpt Ag. Defiance Silver resumed drilling at the Veta Grande vein system in Zacatecas. Azucar Minerals received results from drilling on the Lithocap target at the El Cobre project in Veracruz. ON DEALS AND CORPORATE ISSUES, Vizsla Silver entered into a LOI with Prismo Metals for a strategic investment and right of first refusal for the purchase of Prismo’s Palos Verdes project in Sinaloa.

ON MEXICO ISSUES

  • Andrés Robles Osollo, Vicepresident of government relations of the AIMMGM (Asociación de Ingenieros de Minas, Metalurgistas y Geólogos de México) pointed that México is a mining country, but that the industry has neglected the promotion of the craft and the importance of México on the World production of minerals. México is the leader in silver production, and is within the first ten producers of gold, copper, lead and zinc.
  • Arcelor Mittal announced the investment of 3,000 million pesos at Las Truchas mine in Michoacan, to increase the production rate from 1 M tonnes/year to 2.3 M tonnes/year. The company complained on the illegal blockage of the railroad line for three months in 2021 by a teachers Union, and said that they are working closely with the Michoacan government to keep the rails free of blockades.  

ON EXPLORATION

  • Radius Gold Inc. provided an update on the company’s exploration activities at the 10,250 ha Amalia project, in Chihuahua. The JV with Pan American Silver Corp. has completed 23,059 m of drilling in 67 holes on the California, Amalia and El Cuervo vein systems. Recent mapping and sampling extended the target for 1.5 km at California, and several parallel structures were identified. Pan American “has completed its right to earn an initial 65% interest in the Amalia Project by making cash payments to Radius totalling US$1.5 million (paid) and expending US$2 million on exploration over four years (completed). Pan American may earn an additional 10% by advancing the property to preliminary feasibility”.
  • Radius Gold Inc. informed on work at the Plata Verde project in Chihuahua. Fresnillo PLC has an agreement since mid-2022 to negotiate an option agreement to earn 70% interest in the project. Since then, Fresnillo has funded US$100 K on the signature of the agreement, paid US$65 in underlying property option payments, paid US$103 K in back taxes and invested US$35 K in the project. Fresnillo has to spend over a four-year period US$5 M in exploration and make option payments to Radius of US$3.1 M which includes US$1.1 M to cover underlying property payments. “Should either Party’s interest fall below 10% interest in NewCo that interest would convert to a 2% NSR”.
  • Radius Gold Inc. notified on exploration at its Maricela project in Sonora. The project is 20 km south from the Cananea copper mine, and only a few kilometers from the Loma de Plata silver deposit discovered a few years ago by Azure Minerals. Radius has “mapped and sampled an epithermal silver and gold mineralized vein system extending approximately 1.5km long by 300m wide, within which occurs multiple veins, stockworks and breccias. Vein intersections have exposed widths of up to 25 metres”. Highlighted chip sampling results comprise 3 m @ 4.46 gpt Au, 1,335 gpt Ag; 6 m @ 1.03 gpt Au, 418 gpt Ag; 25.3 m @ 0.31 gpt Au, 62 gpt Ag. Radius is awaiting final registration of the option agreement, as already counts with the drilling permit.

ON MINING

  • Discovery Silver Corp. released financial results for the third quarter 2022. Results from the PFS metallurgical testwork program at Cordero in Chihuahua highlighted recoveries in the 90-95% range for Ag, Pb and Zn. The phase II drilling program of close to 80,000 m of drilling in over 250 holes was completed during the quarter. Cash, cash equivalents and short-term investments stood at $55.5 M at the end of the period.
  • Impact Silver Corp. announced its financing and operating results for the Q3 2022. During the quarter 39.8 K tonnes were processed at the mill at an average grade of 165 gpt. In response to higher operational costs and lower metal prices, Impact initiated a first round of lay-offs and reduced its exploration spending. “The cash position remains strong at $16.5 million with working capital of $17.6 million”.
  • Guanajuato Silver Company Ltd. provided consolidated production results for the Q3 2022. The consolidated production from the El Cubo Mines Complex in Guanajuato, San Ignacio in Guanajuato and Topia in Durango during the quarter comprised 107.4 K tonnes mined, 107 K tonnes milled at a rate of 1,274 tonnes per day, recovering 88.5% Ag, 86.3% Au, to produce 329.3 K Oz Ag, 3,226 Oz Au, 537.6 K Lb Pb, 677.1 K Lb Zn (700.3 K Oz AgEq).

ON FINANCING

  • Alamos Gold Inc. declared a quarterly dividend of US$0.025 per common share. “The Company has paid dividends for 13 consecutive years during which time $285 million has been returned to shareholders through dividends and share buybacks, including $48 million thus far in 2022” (Mulatos, Sonora).
  • Guanajuato Silver Company Ltd. announced the partial repayment of the two loan/pre-payment facilities with Swiss-based precious metal trading firm OICM Precious Metals S A. “Guanajuato Silver has delivered an aggregate of 96,518 ounces of silver and 846 ounces of gold representing five months’ deliveries of silver and gold ounces to OCIM thereby reducing the total number of monthly delivery payments remaining to OCIM under both facilities to ten” (El Cubo, Guanajuato).
  • Defiance Silver Corp. intends to settle $41.9 K of debt through the issuance of common shares of the company (San Acacio, Zacatecas).

ON RESOURCES AND DEVELOPMENT

  • Discovery Silver Corp. announced results from 15 drill holes of upgrade and expansion drilling of the proposed open pit, subsequent to the cut-off date for the pre-feasibility study (PFS) on its Cordero project in Chihuahua. Highlighted core length intervals comprise 77 m @ 46 gpt Ag, 0.08 gpt Au, 0.7% Pb, 1.4% Zn; 22 m @ 83 gpt Ag, 0.10 gpt Au, 1.8% Pb, 3.2% Zn; 96 m @ 33 gpt Ag, 0.03 gpt Au, 0.7% Pb, 1.8% Zn (including 36 m @ 44 gpt Ag, 0.04 gpt Au, 0.9% Pb, 3.1% Zn); 43 m @ 62 gpt Ag, 0.11 gpt Au, 1.4% Pb, 1.7% Zn; 52 m @49 gpt Ag, 0.07 gpt Au, 0.8% Pb, 1.7% Zn. “The Company has now completed approximately 17,000 m (52 holes) as part of its Feasibility Study drill program”. Total meters drilled in the project now is over 293,000 m in 735 holes.
  • GR Silver Mining Ltd. released surface drilling results from four holes on the Southeast Area of the San Marcial project in Sinaloa. Highlighted core length results comprise 14.1 m @ 186 gpt Ag (including 0.2 m @ 6,405 gpt Ag, 10.1% Pb, 17.9% Zn); 73.5 m @ 72 gpt Ag (including 1.1 m @ 905 gpt Ag and 0.8 m @ 1,039 gpt Ag); 185.5 m @ 111 gpt Ag (including 83.2 m @ 215 gpt Ag); 1.0 m @ 31.3 gpt Au. “The Company expects to complete three more drill holes in the SE Area prior to the December cut-off date for data to be incorporated into the 3D geological model, with the updated resource estimation expected to be released in Q1|2023”.
  • Defiance Silver Corp. resumed drilling at the Veta Grande vein system at the Zacatecas project in Zacatecas. “The approximate 4000m program is an extension of the previous phases of drilling, all of which returned high grades down plunge and outside of the current resource estimate”. Drilling is to focus on the recently discovered deep historic working to the East, down plunge of high-grade results below the current resource estimate, the footwall vein north of the main Veta Grande structure and the cross structures and vein splays with mineralization potential.
  • Azucar Minerals Ltd. received and compiled results from two holes completed at the Lithocap target at its El Cobre project in Veracruz. “Large intervals of brecciated rock were intersected possibly reflecting a diatreme like body that may have disrupted any earlier porphyry alteration zonation in this area”. No significant intervals of porphyry mineralization were intersected, with the most relevant result being a late sulfide vein which returned 0.7 m @ 0.95% Cu, 0.42 gpt Au.

ON DEALS AND CORPORATE ISSUES

  • Vizsla Silver Corp. entered into a non-binding letter of intent (LOI) with Prismo Metals Inc. to make a strategic investment with right for first refusal to Purchase the Palos Verdes property, adjacent to Vizsla’s Panuco project in Sinaloa, and 4 M shares of Prismo for C$2 M. “The consideration for the Strategic Investment will consist of a cash payment of C$500,000 at closing and 1,000,000 common shares of Vizsla”. After completion of the deal VIZSLA will own 12% of Prismo shares on a basic basis and 17% on a partially diluted basis.

ON SOCIAL RESPONSIBILITY

  • Vizsla Silver Corp. exceeded one million consecutive work hours without a lost time incident at its Panuco project in Sinaloa.
  • Discovery Silver Corp. released its environmental, social and governance report (ESG) “and subsequent to quarter end received its official ESR Distinction, which is issued by the Mexican Center for Philanthropy to organizations that have demonstrated they operate in a socially and environmentally responsible manner, and its Great Place to Work Certification, which recognizes companies that create an outstanding employee experience through building a workplace culture of trust, credibility, respect, pride and collaboration” (Cordero project, Chihuahua).
  • Torex Gold Resources Inc. released its inaugural Climate Change Report with emphasis in carbon emission reduction, and confirmed having received the permitting from SEMARNAT (Environmental regulator) for construction of an 8.7 megawatt solar plant on its mining concessions and the awarding of a contract for battery electric vehicle scoop fleet at its Media Luna project in Guerrero.

On the image below puzzling boudin like siliceous bands in limestone on a project in the Sonoran Desert. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the Fourth Week of October 2022

/ Gambusino Prospector / Leave a comment

By Jorge Cirett

During the 43rd week of the year (October 24th to October 30th, 2022), 17 companies working in Mexico released news on their properties. Three companies posted exploration advances on their projects, three companies released Q3 2022 results, one company closed the first tranche of a private placement, one is newly trading at another Stock Exchange and one more expanded on the deferment of payment on the acquisition of a mine. Three companies presented Q3 2022 results. Six companies presented drilling results on their advanced properties. One Company is acquiring a large adjoining land package adjacent to its project and one more expanded on a legal suit regarding the illegal transfer of several of its mining concessions.  ON MEXICO ISSUES, mining companies at the BMV are taking a pounding due to reduced production, inflation and lower metal prices. The AIMMGM is asking the government for increase security and raised the danger of explosives theft. ON EXPLORATION, in Sonora, Aztec Minerals released drilling results from its Cervantes project; Colibri Resource resumed exploration at Evelyn. In Nayarit, Angel Wing Metals updated on exploration at El Grande. ON MINING, Mag Silver, Agnico Eagle Mines and Alamos Gold released Q3 2022 production results. ON FINANCING, Capitan Mining closed the first tranche of its non-brokered private placement for $2.6 M gross proceeds. Guanajuato Silver Company is now on the Apex segment of the Aquis Stock Exchange. Bear Creek Mining reached an agreement to defer the payment of the Mercedes mine in Sonora for two years. ON RESOURCES AND DEVELOPMENT, Prime Mining released drilling results from Los Reyes in Sinaloa. Oroco Resources presented assays from drilling at Sant Tomás, in Sinaloa. Silver Tiger presented results from drilling El Tigre and Sooy veins at El Tigre, in Sonora. Vizsla Silver reported results from 12 holes on La Luisa vein at its Panuco project in Sinaloa. Defiance Silver updated on the drill program at the Veta Grande vein system of the Zacatecas Silver project in Zacatecas. Silver Dollar reported the last assays from drilling of La Noria zone at La Joya project in Durango . ON DEALS AND CORPORATE ISSUES, Angel Wing Metals entered into a binding agreement to acquire a large land package adjacent to its El Grande project in Nayarit. Defiance Silver initiated a case “against the illegally and fraudulently transferred mineral concessions concerning its Tepal Project” in Michoacan. ON SOCIAL RESPONSIBILITY, Agnico Eagle and Alamos Gold presented information on their social responsibility work and achievements at the corporate and community levels.

ON MEXICO ISSUES

  • Mining companies in the BMV (Bolsa Mexicana de Valores) had a negative Q3 2022 due to inflation and lower metal prices. Grupo México reported a 34.7% year to year fall in Q3 2022 of EBITDA and a 24.4% decline in share price to a 6.6% reduction in copper production and a 18.6% drop in the red metal price. Total copper production was 256.3 K tonnes in the period. Industrias Peñoles EBITDA is 18.5% lower in the same period, as well as a 10.9% drop in the share price.
  • The AIMMGM (Asociación de Mineros, Metalurgistas y Geólogos de México) asked for government intervention to increase security on their operations. States with the strongest mining tradition like Chihuahua, Estado de México, Guerrero, Guanajuato, Sonora and Zacatecas are among those with greater insecurity perception ratings. Companies in some states spend up to 2% of their total budget in security, and some companies have reported to the government their compliance with racketeering schemes to be able to operate. The risk posed by the increase in the theft of explosives was also raised.  

ON EXPLORATION

  • Aztec Minerals Corp. completed the phase 3 core drilling program at the Cervantes project in Sonora. Eleven core hole totaled 2,515.5 m of drilling at the California, California North and Jasper targets. Highlighted core length results comprise 9.0 m @ 1.72 gpt Au; 16.5 m @ 0.34 gpt Au; 26.7 m @ 0.54 gpt Au, 7.5 m @0.43 gpt Au; 46.5 m @ 0.44 gpt Au; 5.65 m @0.25 gpt Au. “… the gold mineralization appears to be widely distributed in disseminations, fractures and veinlets at high levels within in a Quartz-feldspar porphyry intrusive complex and related hydrothermal breccias”.
  • Angel Wing Metals Inc. updated on the exploration program at El Grande project after the acquisition of the adjoining La Reyna land package in Nayarit (See Deals and Corporate Issues below). “The first phase of greenfield exploration has focused on the near surface low sulphidation exploration potential, starting with regional geological mapping and prospecting, structural and alteration mapping, outcrop chip and channel sampling rock sampling, and environmental baseline studies. Detailed mapping and sampling of selected targets are prioritised for grid soil and outcrop sampling programs and drilling…. An airborne geophysical survey is proposed with follow-up ground geophysics on selected targets pending receipt of permits. The results from this work will be used to design a Phase One 3,000 metre diamond drill program to commence in late Q4 2022 or Q1 2023, once updated drill permits including the newly acquired claims are received.
  • Colibri Resource Corp. has resumed exploration at its Evelyn property in Sonora. Soil samples are currently being collected by geologists on site, and an application for drilling and trenching was submitted to SEMARNAT. One program of reverse circulation (RC) drilling comprises 2,000 m in five holes to test a chargeability and resistivity anomalies and a second program is to explore under alluvial cover, comprising several short, closely spaced holes to penetrate the alluvium and sample the top of the bedrock

ON MINING

  • Mag Silver Corp. reported third quarter 2022 production from the Juanicipio project (56% Fresnillo PLC, 44% Mag Silver) in Zacatecas. On a 100% basis, 180.8 K tonnes of underground development and initial stopes were processed during the period, to produce 2.62 M Oz Ag, 5,422 Oz Au (Mag’s attributable 44% interest: 1.15 M OZ Ag, 2,386 Oz Au). “Mineralized material from Juanicipio continues to be processed through the nearby Saucito (70%) and Fresnillo beneficiation plants (30%) which are owned by Fresnillo PLC.
  • Agnico Eagle Mines Ltd. released third quarter results, including figures from its operations in Mexico. At Pinos altos, in Chihuahua, 378 K tonnes were processed at a rate of 4,109 tonnes per day (TPD), grading 1.98 gpt Au to produce 23,041 Oz Au at a production cost of $1,498 per OZ Au and total cash cost of $1,295 per Oz Au. Exploration drilling confirmed the existence of a high-grade block 100 m below the lowest production level at Pinos Altos, with a reported drill intercept of 11.6 m @ 3.1 gpt Au, 122 gpt Ag. At the Cubiro deposit under development, 9.2 m @ 3.3 gpt Au were intercepted in the western limits of the main Cubiro Corridor. At La India, in Sonora, 1.04 M tonnes were processed at a rate of 11,359 TPD, grading 0.72 gpt Au at a production cost of $1,246 per Oz Au and a total cash cost of $1,196 per Oz Au. “In the third quarter of 2022, the Main Zone pit was depleted and ore production transitioned to the La India and El Realito pits, resulting in higher gold grades and a higher stripping ratio”.
  • Alamos Gold Inc. reported its financial results for the Q3 2022, including figures from its Mexican operations. At Mulatos, in Sonora, 42,700 Oz Au were produced at total cash cost $1,781 per Oz Au and mine site AISC of $1,137 per Oz Au, with a capital expenditure of $6.9 M. At the Mulatos mine 759.3 K tonnes were mined and 1.57 M tonnes of waste moved (2.07 waste to ore ratio), with 1.27 M tonnes stacked @ 0.75 gpt Au (30,916 Oz Au stacked, 56% Au recovery rate) and 14 K tonnes crushed per day. At La Yaqui Grande 739 K tonnes were mined, 5.3 M tonnes of waste moved, 794 .1 K tonnes @ 1.23 gpt Au were stacked (31,362 Oz Au stacked, 81% Au recovery) and 8.7 K tonnes crushed per day. “La Yaqui Grande is an open pit mine with an independent leach pad located approximately seven kilometres from the existing Mulatos operation….  La Yaqui Grande performed well in its first full quarter of operation, producing 25,300 ounces of gold”.

ON FINANCING

  • Capitan Mining Inc. closed the first tranche of the previously announced $3.2 M non-brokered private placement for total proceeds of $2.6 M. The second tranche for total proceeds of $600 K is expected to close on or before the end of October (Cruz de Plata, Durango).
  • Guanajuato Silver Company Ltd. completed its admission to the Apex segment of the Aquis Stock Exchange, whilst continuing to trade on the TSX Venture Exchange (El Cubo and Valenciana, Guanajuato).
  • Bear Creek Mining Corp. reached a “heads of agreement” with Equinox Gold Corp. to amortize over a two-year period the payment of the final $25 M purchase price installment for the Mercedes mine in Sonora. The payment that was to be made on October 2022 has been converted in a promissory note maturing on October 2024, with monthly principal and interest payments commencing in February 2023, with an interest rate of 12.5% plus the greater of 2.5% or the 90-day average SOFR and monthly payments of US$500 K or 50% of free cash flow (Mercedes, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Prime Mining Corp. announced further phase 2 drill results from the Guadalupe area of the Los Reyes project in Sinaloa. Highlighted true width (TW) intercepts comprise 11.8m @ 2.7 gpt Au, 88 gpt Ag (including 2.2 m @ 27.9 gpt Au, 509 gpt Ag); 17.0 m @ 1.7 gpt Au, 59 gpt Ag (including 5.8 m @ 4.9 gpt Au, 176 gpt Ag); 12.2 m @ 1.7 gpt Au, 140 gpt Ag; 3.5 m @ 4.9 gpt Au, 614 gpt Ag (including 0.6 m @ 23.2 gpt Au, 2,550 gpt Ag); 1.9 m @ 6.08 gpt Au, 913 gpt Ag. “Reported intercepts are up to 100 m to the west, 240 m to the east, and 100 m below the 2020 pit-constrained resource”.
  • Oroco Resource Corp. released assay results from an additional 2,668 m of drilling in the North zone and 1,456 m in the Brasiles zone of its Santo Tomás project in Sinaloa. Highlighted core length intervals comprise 195.2 m @ 0.41% Cu; 117.8 m @ 0.22% Cu; 132.0 m @0.40% Cu; 36.0 m @ 0.20% Cu; 106.1 m @ 0.31% Cu; 211.6 m @ 0.41% Cu; 133.0 m q 0.17% Cu; 159.6 m @ 0.32% Cu; 228.0 m @ 0.31% Cu. “The 2021-2022 North Zone drill program is continuing to confirm and expand the 2009 Gradeshell model of Cu >0.30%” in the 2019 technical report, with a total of 38 holes now completed on the North zone spanning 1,400 of strike length.
  • Silver Tiger Metals Inc. presented results from drilling the El Tigre and Sooy veins at El Tigre project in Sonora. Highlighted core length intervals comprise 0.5 m @ 1.46 gpt Au, 1,320 gpt Ag; 5.4 m @ 220 gpt Ag; 10.7 m @ 120 gpt Ag (including 1.1 m @550 gpt Ag); 20.5 m @42 gpt Ag; 1.6 m @ 0.28 gpt Au, 528 gpt Ag; 0.5 m @ 991 gpt Ag; 5.9 m @ 0.10 gpt Au, 678 gpt Ag (including 1.0 m @0.37 gpt Au, 2,754 gpt Ag; 36.4 m @ 0.13 gpt Au, 42 gpt Ag; 3.1 m @211 gpt Ag; 9.4 m @ 0.19 gpt Au, 641 gpt Ag; “These next three wide consistently mineralized high grade holes confirm the new discovery in the El Tigre Vein we first reported in September 2022. Drilling continues on this exploration target under the unmined portion of the Historic El Tigre Mine as we follow this wide high grade along strike to the North.”
  • Vizsla Silver Corp. reported results from 12 holes targeting the La Luisa vein, close to the Napoleon vein, at its Panuco project in Sinaloa. Highlighted true width intervals comprise 6.13 m @ 133 gpt Ag, 3.68 gpt Aum 0.2% Pb, 0.3% ZN (including 0.68 m @ 595 gpt Ag, 27.50 gpt Au, 0.5% Pb, 0.6% Zn); 2.59 m @ 197 gpt Ag, 4.60 gpt Au, 0.2% Pb, 0.4% Zn (including 0.57 m @ 596 gpt Ag, 18.50 gpt Au, 0.6% Pb, 0.9% Zn); 1.00 m @ 49 gpt Ag, 2.90 gpt Au, 0.2% Pb, 0.7% Zn; 3.44 m @ 77 gpt Ag, 1.11 gpt Au; La Luisa vein structure has been mapped for almost 1 Km hosted in rhyolite tuffs and “bears vein-textures indicative of being at higher-levels in the epithermal profile …… there exists the potential for increased grades and widths along strike and down plunge to the south”.
  • Defiance Silver Corp. updated on the drill program at the Veta Grande vein system of the Zacatecas Silver project in Zacatecas. Highlighted core length results comprise 10.16 m @ 0.70 gpt Au, 121 gpt Ag, 0.7% Pb, 2.9% Zn (or 339 gpt AgEq, including 3.38 m @ 1.96 gpt Au, 345 gpt Ag, 2.2% Pb, 8.0% Zn, which includes 0.9 m @ 4.18 gpt Au, 868 gpt Ag, 4.6% Pb, 17.0% Zn); 2.0 m @ 0.51 gpt Au, 121 gpt Ag, 1.4% Pb, 4.8% Zn; 1.94 m @ 0.62 gpt Au, 29 gpt Ag, 0.4% Pb, 1.1% Zn; 2.19 m @ 0.29 gpt Au, 79 gpt Ag, 0.2% Zn. These results confirm the continuity of mineralization below the 2014 mineral resource. “The highest-grade silver mineralization at the San Acacio project is typically associated with honey-coloured sphalerite, argentiferous galena, variable silver sulfides and sulfosalts, and spatially correlated with amethyst”.
  • Silver Dollar Resources Inc. reported final assays from phase II drilling at the Noria portion of the La Joya project in Durango. Highlighted core length results comprise 25.44 m @ 21 gpt Ag, 0.08 gpt Au, 0.17% Cu, 0.2% Zn; 3.86 m @ 72 gpt Ag, 0.11 gpt Au, 0.09% Cu, 0.5% Zn; 1.29 m @ 304 gpt Ag, 0.68 gpt Au, 1.8% Pb, 5.3% Zn; 2.88 m @ 52 gpt Ag, 0.14% Cu, 0.1% Pb, 0.5% Zn; 3.0 m @ 2.3% Zn; 1.50 m @ 20.60% Zn; 0.66 m @ 43 gpt Ag, 2.1% Pb, 5.8% Zn; 6.67 m @ 63 gpt Ag, 0.10 gpt Au, 0.18% Cu, 0.3% Pb, 1.0% Zn.

ON DEALS AND CORPORATE ISSUES

  • Angel Wing Metals Inc. entered into a binding agreement with a private entity to acquire 100% interest in the 102.87 square Km La Reyna property land package in six titled concessions adjoining the El Grande project, and cover the Aguila de Oro (Golden Eagle) mining district in Nayarit. Angel Wing Metals Is to make a total payment of US$700 K, of which US$150 K have been paid upon signing, US$150 K have been paid upon filing of the agreement at the Public Registry of Mining in Mexico (Registro Público de Minería), and US$400 K to be paid upon positive resolution on the agreement by the Public Registry of Mining. A further payment of US$50 K will be due upon the identification of each 1.0 M OZ Au in the measured and indicated categories of a mineral resource on a NI43-101 technical report, and a 1.5% net smelter return (NSR) royalty with Angel Wing Metals retaining the right of first refusal to purchase the royalty for US$2.0 M.
  • Defiance Silver Corp. announced “that the case initiated against the illegally and fraudulently transferred mineral concessions concerning its Tepal Project” in Michoacán, has been admitted for trial by a District Court in Michoacán. The mineral concessions have to “stay” until the trial concludes and a final judgement is rendered. The Mexican Mining Public Registry has been informed. “Defiance has a substantial likelihood of success on the merits. Mexican Law, Mexican Precedents, and Mexican Courts are consistent in declaring null and void illegal transfers made fraudulently”.

ON SOCIAL RESPONSIBILITY

  • Agnico Eagle Mexico was awarded 17th place among the Top 100 of the best companies to work for in Mexico by Great Place to Work®. La India mine in Sonora received the “Distinction of Socially Responsible Company” distinction “granted by the Mexican Center for Philanthropy (Centro Mexicano para la Filantropía) and the Foundation for Sustainability and Equity (Alianza por la Responsabilidad Social Empresarial en México) to recognize companies for their commitment to ensuring the well-being of employees, operating with superior business ethics, community outreach and environmental care and preservation”.
  • Alamos Gold Inc. held information sessions on the company’s cyanide management practices with the communities of Yécora, El Trigo and Matarachi, Sonora, within the framework of the International Cyanide Management Code. An ambulance was donated to the Sahuaripa municipality, an online high school was established at Matarachi through an agreement with the Tec de Monterrey. Two freshwater pumping stations were set at Matarachi. New scholarship committees established in Matarachi, Sahuaripa and Yécora as part of the Company’s continued support for local students.

On the image below Late milky white quartz veinlets cross cutting previous quartz-specularite veining in the Sonoran Desert. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the Second Week of October 2022

/ Gambusino Prospector / Leave a comment

During the 41st week of the year (October 10th to October 16th, 2022), 15 companies working in Mexico released news on their properties. Three companies posted exploration advances on their properties, six companies released Q3 2022 results, one company is to undertake a private placement and one more expanded on the maturity extension of convertible debentures and three companies released drilling results from their advanced properties.  ON MEXICO ISSUES, no relevant news. ON EXPLORATION, in Sonora, Regency Silver released drilling results from the Dios Padre property, including great results from a hole testing a geophysical anomaly 500 m from the historic resource. Prismo Metals updated on the drilling program and sampling protocol at Palos Verdes. In Durango, Silver Wolf updated on exploration at its Ana Maria project. ON MINING, Endeavour Silver, Torex Gold, GoGold Resources, Orla Mining, Gatos Silver and Gold Resource released Q3 2022 production results. ON FINANCING, Sonoro Resource is to undertake a financing round for C$525 K. Barksdale Resources extended the maturity date of convertible debentures with a remaining principal amount of $1.5 M.  ON RESOURCES AND DEVELOPMENT, Avino Silver and Gold Mines released drilling results from its Avino mine in Durango. Prime Mining provided drilling results from Los Reyes property, in Sinaloa. Vizsla Silver reported drilling results from the southern part of the Napoleon vein at its Panuco project in Sinaloa. ON DEALS AND CORPORATE ISSUES, no relevant news. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • No Relevant News.

ON EXPLORATION

  • Prismo Metals Inc. updated on the drill program at its Palos Verdes project in Sinaloa. A total of 1,062 m have been drilled of the planned minimum 2,000 m. Three holes have been completed and one is in progress testing the Palos Verdes vein and a structural intersection. By analyzing Vizsla’s Silver recent drill data on the adjacent Panuco project, a new sampling protocol has been implemented, including wallrocks with quartz veining. Several long intervals of the past drilling campaign will be also sent to the lab.
  • Regency Silver Corp. released results from the first 12 holes at its Dios Padre property in Sonora. The highlighted core length interval of the first hole on a geophysical anomaly 500 m north of the historic resource comprise 53.8 m @ 4.7 gpt Au (including 35.8 m @ 6.84 gpt Au, 22 gpt Ag, 0.88% Cu and 9.8 m @ 13.97 gpt Au, 50 gpt Ag, 1.11% Cu) starting at 420 m depth. Au-Cu-Ag mineralization in this hole is largely breccia hosted, with pyrite and chalcopyrite forming the breccia matrix. “The core of the mineralized zone sits within and adjacent to a felsic intrusive body, though mineralization is present both within the felsic unit as well as the host andesites. Both rock units are strongly altered to white mica with some silica”. The hole was stopped due to the 500 m maximum capacity of the rig being used. Highlighted intervals were released by element, comprising 60 m @ 0.33% Cu; 52 m @ 0.69% Cu (including 33 m @ 0.94% Cu) and 29.3 m @ 0.36 gpt Au; 6 m @ 0.68 gpt Au; 53.8 m @ 4.7 gpt Au; 21.5 m @ 0.53 gpt Au; 4.2 m @ 2.1 gpt Au; 49.65 m @ 0.58 gpt Au; 10 m @ 0.57 gpt Au; 17.9 m @ 1.34 gpt Au; 23.65 m @ 0.36 gpt Au and 26.3 m @ 63 gpt Ag;  (including 4.3 m @ 317 gpt Ag); 60 m @ 19 gpt Ag; 8 m @ 60 gpt Ag; 18 m @ 14 gpt Ag; 8 m @ 67 gpt Ag; 12 m @ 45 gpt Ag; 17.5 m @ 135 gpt Ag (including 3.9 m @ 582 gpt Ag); 2.2 m @ 220 gpt Ag; 10.95 m @ 302 gpt Ag; 6.95 m @ 336 gpt Ag; 18.55 m @ 50 gpt Ag; 7.5 m @ 113 gpt Ag; 3.1 m @ 420 gpt Ag; 21.5 m @ 137 gpt Ag; 9.6 m @ 56 gpt Ag; 1 m @ 603 gpt Ag; 37.4 m @ 110 gpt Ag (including 19.65 m @ 203 gpt Ag).
  • Silver Wolf Exploration Ltd. reported on exploration at its 2,500 hectares Ana Maria property in Durango. Two main targets are being defined using a carbonate replacement deposit (CRD) model. The central claim block hosts a gold skarn type showing, while the southern claim block is distal to the intrusive, hosting CRD Ag-Zn-Pb prospects and historical small mines. “Continued work on the central claims include a reinterpretation of geophysical results to fine tune the magnetics data and further identify the intrusive contacts with the surrounding limestone at depth”.

ON MINING

  • Endeavour Silver Corp. reported third quarter 2022 production results, with 202.7 K tonnes processed at a daily rate (tpd) of 2,204 tonnes grading 248 gpt Ag, 1.60 gpt Au to produce 1.46 M Oz Ag, 9,194 Oz Au. At Guanaceví, in Durango, 97.7 K tonnes were processes at 1,062 tpd, grading 468 gpt Ag, 1.29 gpt Au with a recovery of 90.6% Ag, 89.9% Au to produce 1.33 M Oz Ag, 3,642 Oz Au. At Bolañitos, in Guanajuato, 105 K tonnes were processed at 1,141 tpd, grading 43 gpt Ag, 1.88 gpt Au with a recovery rate of 87.0% Ag, 87.5% Au, to produce 126.3 K Oz Ag, 5,552 Oz Au. Positive drilling results have been received from Guanaceví and Parral, extensive due diligence work continues at Terronera (Jalisco) and the El Compas property and plant were sold for $5 M over five years.
  • Torex Gold Resources Inc. reported Q3 2022 gold production from its El Limón Guajes mining complex in Guerrero. During the period 9,600 tonnes per day (tpd) were mined by open pit and 1,550 tpd from underground, processing an average of 13 K tonnes to produce 122,200 Oz Au.
  • GoGold Resources Inc. reported production for the quarter ending on September 30, 2022. At the Parral tailings project in Chihuahua, 145.9 K Oz Ag, 2,278 Oz Au, 124 tonnes Cu were produced during the period. “The Company had $20M USD in input tax recoverable which related to VAT receivable from the Mexican Federal Government for the years of 2017 to 2022. The Company received $11M which related to 2017 and 2018 which included interest of $5M. Management continues to work with the tax authority on the remaining claims and expects to receive these amounts in due course”.
  • Orla Mining Ltd. provided an interim operational update for the third quarter of 2022. At Camino Rojo in Zacatecas, 4.13 M tonnes were mined, of which 1.74 M tonnes @ 0.88 gpt Au were processed, 0.43 M tonnes @ 0.32 gpt Au were stockpiled (19,200 tonnes per day), and 1.96 M tonnes of waste moved (Strip ratio 0.91), to produce 28,876 Oz Au.
  • Gatos Silver Inc. announced production results for the third quarter 2022 from its 70% owned Cerro Los Gatos property in Chihuahua. During the period 263.3 K tonnes were milled at a rate of 2,862 tpd averaging 356 gpt Ag, 0.34 gpt Au, 2.38% Pb, 4.70% Zn. Recovering 89.6% Ag, 48.9% Au, 88.5% Pb, 65.4% Zn to produce 2.70 M Oz Ag, 1,400 Oz Au, 12.2 M Lb Pb, 17.8 M Lb Zn. “The Company had a cash balance of $15 million and debt outstanding of $13 million related to our credit facility as of September 30, 2022”, and “anticipates completing an impairment assessment based on the 2022 Mineral Reserve in the fourth quarter of 2022 and is working towards completing all outstanding SEC and OSC filings as soon as practicable”.
  • Gold Resource Corp. announced preliminary results in Q3 2022. At the Don David mine in Oaxaca, 110.7 K tonnes were milled (1,361 tpd), averaging 1.98 gpt Au, 80 gpt Ag, 0.37% Cu, 1.59% Pb, 4.21% Zn, to produce 5,851 Oz Au, 261.2 K Oz Ag, 296 tonnes Cu, 1,249 tonnes Pb, 3,901 tonnes Zn. 

ON FINANCING

  • Sonoro Gold Corp. is to undertake a non-brokered private placement offering for gross proceeds of up to C$525 K (Cerro Caliche, Sonora).
  • Barksdale Resources Corp. has finalized the extension of the maturity date of the secured convertible debentures administered by Delbrook Capital Advisors Inc. by one year until December 31, 2023. “The Debentures have a remaining principal amount of $1,500,000 and all other terms of the Debentures remain unchanged except for the conversion price, which has increased to $0.55 per share from $0.45 per share”. Approximately $99 K of accrued interest will be exchanged for 206.6 K shares units consisting of one share and one-half of common share purchase warrant. An extension fee of 2.78 M common share purchase warrants at a price of $0.72 exercisable up to December 2023 was agreed (San Javier, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Avino Silver & Gold Mines Ltd. released drilling results from six holes completed below the current Level 17 mining area at the Elena Tolosa area of the Avino mine in Durango. Highlighted true width (TW) intercepts comprise 26.77 m @ 0.15 gpt Au, 50 gpt Ag, 0.71% Cu; 43.80 m @ 0.15 gpt Au, 15 gpt Ag, 0.49% Cu; 10.90 m @ 0.06 gpt Au, 25 gpt Ag, 1.05% Cu; 9.95 m @ 0.25 gpt Au, 17 gpt Ag, 0.40% Cu; 14.40 m @ 0.17 gpt Au, 30 gpt Ag, 0.19% Cu. These drilling results demonstrate the continuity of grade and thickness of the mineralization currently being mined at the lowest level of the mine. The company is developing a geological model based on a near porphyry environment, supported by the grade continuity over 600 m vertically and base metal zonation.
  • Prime Mining Corp. announced results from five holes in the Z-T area of the Los Reyes property in Sinaloa. Highlighted true width intercepts comprise 13.2 m @ 2.36 gpt Au, 178 gpt Ag; 7.40 m @ 0.91 gpt Au, 139 gpt Ag; 5.60 m @ 3.86 gpt Au, 89 gpt Ag; 5.30 m @ 1.17 gpt Au, 207 gpt Ag. Five rigs have completed 70,590 m of drilling in this phase 2 campaign that is planned to continue to the end of October, while results for 93 holes remain pending.
  • Vizsla Silver Corp. reported results from 12 holes targeting the southern extension of the Napoleon vein at its Panuco project in Sinaloa. Highlighted true width (tw) intervals comprise 1.0 m @ 1.60 gpt Au, 2,642 gpt Ag, 1.9% Pb, 4.1% Zn; 1.0 m @ 3.63 gpt Au, 740 gpt Ag; 0.2% Pb, 1.2% Zn; 1.86 m @ 0.6 gpt Au, 354 gpt Ag, 0.2% Pb, 0.5% Zn; 1.81 m @ 3.12 gpt Au, 1,268 gpt Ag, 0.2% Zn; 0.91 m @ 5.77 gpt Au, 320 gpt Ag, 0.5% Pb, 1.3% Zn. “The new drill holes report high grade silver and gold intercepts from the footwall vein splays and further support grade continuity to the south along the main Napoleon Vein”.

ON DEALS AND CORPORATE ISSUES

  • No Relevant News.

ON SOCIAL RESPONSIBILITY

  • No Relevant News.

On the image below Banded quartz-calcite veinlet in the Sonoran Desert. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the Fifth Week of September 2022

/ Gambusino Prospector / Leave a comment

By Jorge Cirett

During the 39th week of the year (September 26th to October 2nd, 2022), only 10 companies working in Mexico released news on their properties, almost equating the lowest number published since this weekly review commenced seven years ago. Two companies posted exploration advances on their properties, there were no relevant news in mining and financing, three companies released drilling results, updated about exploration on their advanced properties. Two companies informed on the acquisition of properties.  ON MEXICO ISSUES, an accident in the Clarines Navidad mine in Durango resulted in the death of a worker and injury of a second one. ON EXPLORATION, in Sonora, Silver Spruce released drilling results from Diamante; Infinitum Copper informed on drilling results from La Adelita. ON MINING, no relevant news. ON FINANCING, no relevant news.  ON RESOURCES AND DEVELOPMENT, Endeavour Silver reported drilling results from the Santa Cruz vein – El Curso, at Guanaceví, in Durango. Silver Tiger released drilling results from El Tigre Au zone, the Seitz Kelly vein and El Tigre vein, at El Tigre, in Sonora. Discovery Silver announced the results of the final holes of the phase 2 drill program at Cordero, in Chihuahua, and informed on the property wide exploration. ON DEALS AND CORPORATE ISSUES, Canuc Resources acquired three mining concessions adjacent to its land package at its San Javier project in Sonora. Regency Silver entered into an option agreement to acquire the Oso Blanco claims, adjacent to its Dios Padre property in Sonora. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • The Coordinación Nacional de Protección Civil informed on the death of one worker at the Clarines Navidad mine in Indé, Durango. The incident involved a rock fall while underground drilling was being performed, with one other worker resulting with injuries.

ON EXPLORATION

  • Silver Spruce Resources Inc. along with partner Colibri Resources Corp. released drilling results from its Diamante project in Sonora. The reverse circulation (RC) drilling tested La Prieta target, with highlighted hole length intersections of 9.0 m @ 2.48 gpt Au, 57 gpt Ag, 0.7% Pb, 0.3% Zn; 13.5 m @ 0.56 gpt Au, 38 gpt Ag, 0.8% Pb, 1.8% Zn; 10.5 m @ 0.63 gpt Au, 39 gpt Ag, 0.6% Pb, 1.6% Zn; 9.0 m @ 0.55 got Au, 15 gpt Ag, 0.2% Pb, 0.4% Zn; 3.0 m @ 1.36 gpt Au, 87 gpt Ag, 0.9% Pb, 1.7% Zn; 6.0 m @ 0.64 gpt Au, 11 gpt Ag, 0.2% Pb, 0.3% Zn. “Geological features of epithermal Au, low to intermediate sulphidation Ag-Au (Pb-Zn), high sulphidation Au-Cu, and potential porphyry style Au-Cu occur as disseminated, stockwork and vein styles. Most drill targets are polymetallic vein style with precious metal-dominant targets also identified at Calton, El Chon and Aguaje.”
  • Infinitum Copper Corp. reported diamond drilling results from La Adelita, in Sonora. The highlighted true width (TW) results from the two holes comprise 32.25 m @ 1.01% Cu, 0.52 gpt Au, 40 gpt Ag (including 17.05 m @ 1.68% Cu, 0.83 gpt Au, 59 gpt Ag); 19.30 m @ 0.54% Cu, 0.31 gpt Au, 23 gpt Ag. “The skarn alteration is dominated by grossularite-andradite garnet with 5% to 20% associated magnetite. Copper mineralization associated with the skarn consists of chalcocite, chalcopyrite and bornite disseminated in the matrix between crystalline garnet and in later quartz-calcite veinlets”.

ON MINING

  • No Relevant News.

ON FINANCING

  • No Relevant News.

ON RESOURCES AND DEVELOPMENT

  • Endeavour Silver Corp. reported drilling results from its Guanaceví property in Durango. The program focused on the El Curso area of the Santa Cruz vein. Highlighted true width (TW) intervals comprise 1.16 m @ 3.50 gpt Au, 1,150 gpt Ag; 7.28 m @ 3.54 gpt Au, 1,129 gpt Ag (including 0.43 m @ 25.4 gpt Au, 7,80 gpt Ag) on the El Curso area of the Santa Cruz vein and 2.43 m @ 1.43 gpt Au, 967 gpt Ag; 1.17 m @ 1.60 gpt Au, 1,460 gpt Ag from Porvenir Dos. “The 2022 drill program has continued to focus on the El Curso property, establishing lateral and vertical extents of the mineralized zone between the Porvenir Cuatro and Milache mines”.
  • Silver Tiger Metals Inc. released drill results from El Tigre, in Sonora. The targets drilled include El Tigre Au zone, the Seitz Kelly vein and El Tigre vein. Highlighted core length results comprise 0.7 m @ 0.23 gpt Au, 1,204 gpt Ag, 0.55% Cu, 3.2% Pb, 1.1% Zn; 0.5 m @ 2.30 gpt Au, 835 gpt Ag; 19.3 m @ 0.46 gpt Au, 11 gpt Ag; 8.0 m @ 0.40 gpt Au, 25 gpt Ag; 37.1 m @ 0.20 gpt Au, 7 gpt Ag; 14.4 m @ 0.25 gpt Au, 1 gpt Ag; 27.9 m @ 0.50 gpt Au, 26 gpt Ag (including 3.60 m @ 1.45 gpt Au, 144 gpt Ag); 1.5 m @ 0.12 gpt Au, 498 gpt Ag, 0.27% Cu, 1.5% Pb, 0.5% Zn; 19.5 m @ 0.74 gpt Au, 48 gpt Ag; 35.5 m @ 0.24 gpt Au, 110 gpt Ag (including 8.1 m @ 0.45 gpt Au, 392 gpt Ag, 0.3% Pb); 11.7 m @ 0.69 gpt Au; 10.9 m @ 0.58 gpt Au, 6 gpt Ag; 5.9 m @ 0.37 gpt Au, 86 gpt Ag (including 0.5 m @ 2.82 gpt Au, 36 gpt Ag.
  • Discovery Silver Corp. announced the results of the final 26 holes from the phase 2 drill program at Cordero, Chihuahua. Several of the holes are below the previously modeled resource pit, demonstrating the expansion potential at the project. Highlighted core length intervals comprise 50.0 m @ 58 gpt Ag, 0.21 gpt Au, 0.7% Pb, 0.4% Zn; 58.3 m @ 99 gpt Ag, 0.33 gpt Au, 1.6% Pb, 1.0% Zn; 48.3 m @ 100 gpt Ag, 0.63 gpt Au, 1.8% Pb, 0.8% Zn; 42.2 m @ 76 gpt Ag, 0.06 gpt Au, 1.0% Pb, 2.4% Zn; 40.2 m @ 75 gpt Ag, 0.14 gpt Au, 1.2% Pb, 1.1% Zn; 124.7 m @ 37 gpt Ag, 0.04 gpt Au, 0.4% Pb, 1.6% Zn on the PEA pit upgrade and expansion drilling, and 58.2 m @ 21 gpt Ag, 0.05 gpt Au, 0.2% Pb, 1.0% Zn; 17.3 m @ 25 gpt Ag, 0.12 gpt Au, 0.3% Pb, 3.1% Zn; 40.6 m @ 35 gpt Ag, 0.07 gpt Au, 1.5% Zn; 42.2 m @ 76 gpt Ag, 0.06 gpt Au, 1.0% Pb, 2.4% Zn; 86.4 m @ 32 gpt Ag, 0.02 gpt Au, 0.1% Pb, 2.2% Zn on the resource expansion drilling. The property wide exploration program includes geological mapping 2,190 rock samples, 3,639 soil samples, geophysics and diamond drilling. The main areas of surface exploration are Sanson, Pórfido Norte, Dos Mil Diez, Molino de Viento and La Perla. With the phase 2 program, 293,000 m of drilling have been completed in 735 holes in the project.

ON DEALS AND CORPORATE ISSUES

  • Canuc Resources Corp. signed agreements to acquire three additional claims at its San Javier project in Sonora. With an area of 104.5 hectares, the newly acquired claims take the total land position of Canuc to 956.4 hectares. No details were given on the deals.
  • Regency Silver Corp. entered into an option agreement to acquire the Oso Blanco claims in Sonora. The 5,650 hectares are in contiguous to the company’s Dios Padre project. Regency has to pay $500 K over five years, pay back taxes estimated at US$500 K and issue a total of 1 M common shares over 36 months. A US$1 M bonus will be paid upon the publication of a NI 43-101 resource of more than 70 M Oz AgEq or more than 1 M Oz AuEq in the measured or indicated categories.

ON SOCIAL RESPONSIBILITY

  • No Relevant News.

On the image below: Rock fragment within a breccia displaying a quartz veinlet in the Sonoran Desert. Picture by Jorge Cirett.