Resources and Reserves

The Mining and Exploration News in Mexico: Highlights on the Third Week of July, 2022

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By Jorge Cirett

During the 29th week of the year (July 18th to July 24th, 2022), at least 28 press releases were announced by companies working in Mexico. To note, three companies posted exploration advances on their properties and six presented production results for the second quarter. Remarkably six companies reported on the opening or closing of financing rounds for a total of US$24.4 M, and C$0.4 M, one on the opening of a distribution agreement for up to $100 M, one that began trading at the OTCQB and one other provided a by-weekly default status report. Three companies posted on work at its advanced properties and one reported on a possible closure if a labor strike continues.  ON MEXICO ISSUES, no relevant news. ON EXPLORATION, in Sonora, Aloro Mining reported on the resumed drilling at Los Venados. In Chihuahua, Radius Gold updated on work by Pan American Silver at its Amalia project. In Sinaloa, Prismo Metals selected a drill contractor for Palos Verdes. ON MINING, Americas Gold and Silver, Avino silver, Santacruz Silver Mining, First Majestic Silver, Excellon Resources and Great Panther Mining presented production results for the second quarter 2022; Empress Royalty received the first silver ounces from the Tahuehueto stream agreement. ON FINANCING, eight companies posted on financing rounds: Minera Alamos ($4.4 M), Starcore International ($1.2 M), Infinitum Copper ($1 M), Guanajuato Silver Company ($10.7 M), First Majestic Silver ($100 M), Fabled Silver (C$0.4 M), Ranchero Gold (5 M) and Prime Meridian Resources ($1.5 M). Benjamin Hill Mining is now trading on the OTCQB. Gatos Silver presented its by-weekly default report.  ON RESOURCES AND DEVELOPMENT, Prime Mining released drilling results form Los Reyes in Sinaloa. Pan American Silver released spectacular drill results from La Colorada Skarn project in Zacatecas. Tocvan Ventures presented metallurgical test results from Pilar, in Sonora. ON DEALS AND CORPORATE ISSUES, Korea Resources, through its Minera El Boleo subsidiary, is considering the closing of its El Boleo mine in Baja California Sur, as a labor strike continues. ON SOCIAL RESPONSIBILITY, Discovery Silver released its 2021 Environmental, Social and Governance report.

ON MEXICO ISSUES

  • No Relevant News.

ON EXPLORATION

  • Radius Gold Inc. updated on work by Pan American Silver at its Amalia project in Chihuahua. Three main targets have been drill-tested, for a total of 23,058 m in 67 drill holes. Highlighted results include 44 m @ 309 gpt Ag, 12.39 gpt Au at Amalia; 26.9 m @ 353 gpt Ag, 2.59 gpt Au at California; 61.2 m @ 232 gpt Ag, 0.65 gpt Au at El Cuervo. A new core length intercept at El Cuervo returned 4.35 m @ 401 gpt Ag, 0.79 gpt Au. Pan American has completed US$1.5 M option payments, enabling the company to earn an initial 65 % interest. “Pan American may earn an additional 10% by advancing the property to preliminary feasibility”.
  • Aloro Mining Corp. reported that Alamos Gold Inc. has resumed drilling exploration at the Los Venados project in Sonora. “Alamos’ current drill program is focusing on the high sulfidation gold mineralized area in the south, where gold mineralization was identified in Aloro’s initial drill program”. Alamos has the option to acquire a 70% interest on the property by incurring in US$5 M in exploration expenses, and certain cash payments over the course of three years.
  • Prismo Metals Inc. selected a drill contractor for the upcoming drilling campaign on its Palos Verdes property in Sinaloa.

ON MINING

  • Americas Gold and Silver Corp. reported production for the second quarter 2022, including figures from its Mexican operations. At Cosalá, in Sinaloa, 128 K Oz Ag, 3.9 M Lb Pb, 9.9 M Lb Zn were produced. The cash and cash equivalents balance at the end of the period was $8.8 M.
  • Avino Silver & Gold Mines Ltd. reported its second quarter 2022 production results. A t the Avino mine, in Durango, 118.2 K tonnes were milled @ 65 gpt Ag, 0.46 gpt Au, 0.69% Cu, recovering 91% Ag, 78% Au, 92% Cu, to produce 225.5 K Oz Ag, 1,350 Oz Au, 1.64 M Lb Cu.
  • Empress Royalty Corp. announced it has received the first silver ounces from the silver stream agreement on the Tahuehueto mine, in Durango, owned by Alta Ley Mining.
  • Santacruz Silver Mining Ltd. reported second quarter 2022 production results. At Zimapan, in Hidalgo, 200 K tonnes were milled @ 72 gpt Ag, 0.61% Pb, 2.05% Zn, 0.39% Cu, recovering 69% Ag, to produce 317.1 K Oz Ag, 1,043 tonnes Pb, 3,055 tonnes Zn, 568 tonnes Cu (914.5 K tonnes Oz AgEq).
  • First Majestic Silver Corp. announced production results for the second quarter 2022, including figures from its Mexican operations. Consolidated production on its three mines in Mexico, San Dimas in Durango, Santa Elena in Sonora and La Encantada in Coahuila, was 6.16 M Oz AgEq consisting of 2.75 M Oz Ag, 40,759 Oz Au. Silver recovery averaged 81% and gold recovery 93%. During the quarter 11 rigs were operating at San Dimas, six at Santa Elena and two at La Encantada.
  • Excellon Resources Inc. presented Q2 2022 production results from the Platosa mine in Durango. During the period 21.5 tonnes were mined, 23,550 tonnes milled, grading 449 gpt Ag, 4.19% Pb, 4.70% Zn, recovering 90.4% Ag, 75.5% Pb, 86.0% Zn, to produce 307.5 K Oz Ag, 1.64 M Lb Pb, 2.1 M Lb Zn. “As previously disclosed, the Company expects to wind down operations at Platosa during Q3 2022”.
  • Great Panther Mining Ltd. reported production results for the second quarter of 2022, including figures from its Mexican operations. At Topia, in Durango, 17.0 K tonnes were mined, 17.2 K tonnes milled, averaging 315 gpt Ag, 0.74 gpt Au, recovering 92% Ag, 64% Au, to produce 159.5 K Oz Ag, 260 Oz Au, 336 tonnes Pb, 480 tonnes Zn, or 266.9 K Oz AgEq. The Guanajuato Mine Complex is currently on care and maintenance. The company is in the process of divesting its Mexican properties.

ON FINANCING

  • Minera Alamos Inc. closed its non-brokered private placement for aggregate gross proceeds of $4.37 M. Minera Alamos intends to use the proceedings to advance the Cerro de Oro project in Zacatecas (Santana, Sonora).
  • Starcore International Mines Ltd. closed its non-brokered private placement, raising $1.2 M in gross proceeds (San Martin mine, Queretaro).
  • Benjamin Hill Mining Corp. has began trading on the OTCQB (Sonora Gold, Sonora).
  • Infinitum Copper Corp. closed the previously announced non-brokered private placement financing, with oversubscribed gross proceeds of $1.04 M (La Adelita, Sonora).
  • Guanajuato Silver Company Ltd. closed its equity financing of subscription receipts totaling US$ 10.72 M. The funds are on escrow management until the announced acquisition of Great Panther mining assets (Topia, Guanajuato Complex) in Mexico. GSilver has also signed a concentrate pre-payment facility term sheet with Ocean Partners, to provide US$5 M on financing towards the purchase price (El Cubo, Guanajuato).
  • First Majestic Silver Corp. entered into an equity distribution agreement with BMO Capital Markets and TD Securities, pursuant to which the company may sell through these agents common shares of the company as would result in aggregate gross proceeds of US$100 M, until June 18, 2023 (San Dimas, Durango).
  • Fabled Silver Gold Corp. closed the first tranche of a non-brokered private placement for gross proceeds of C$415 K (Santa Maria, Chihuahua).
  • Ranchero Gold Corp. filed a preliminary short form prospectus in connection with a proposed marketed public offering of up to $5 M (Santa Daniela, Sonora).
  • Prime Meridian Resources Corp. announced a non-brokered private placement for gross proceeds of up to $1.5 M. (La Verde, Sonora).
  • Gatos Silver Inc. provided its by-weekly default status report as ordered. “The Company believes that it will be able to file its annual report on Form 10-K for the year ended December 31, 2021, and its quarterly report on Form 10-Q for the quarter ended March 31, 2022 in the second half of 2022” (Cerro Los Gatos , Chihuahua).

ON RESOURCES AND DEVELOPMENT

  • Prime Mining Corp. released results from step-out and infill drilling its Los Reyes project in Sinaloa. Highlighted true width (tw) core results at San Miguel East comprise 16.9 m @ 2.72 gpt Au, 130 gpt Ag; 2.6 m @ 1.24 gpt Au, 14 gpt Ag; 2.3 m @ 1.12 gpt Au; 6.1 m @ 4.86 gpt Au, 151 gpt Ag; 1.2 m @ 1.51 gpt Au; 2.6 m @ 1.88 gpt Au, 284 gpt Ag; 5.4 m @ 1.25 gpt Au, 67 gpt Ag. To date, Prime has drilled 83,235 m in 323 holes at Los Reyes. “Mineralization at San Miguel East consists primarily of white to grey crystalline to chalcedonic quartz, quartz breccia and stockwork exploiting 45-degree southwest dipping fault structures within or along the margins of rhyolite dykes that intrude both andesitic tuffs and rhyolite. Quartz is massive-to-crustiform, locally displaying colliform to bladed replacement textures”.
  • Pan American Silver Corp. released results from 22 new infill and exploration drill holes totaling 18,071 m at its La Colorada Skarn project in Zacatecas. Highlighted (spectacular) core length results comprise 292.5 m @ 234 gpt Ag, 0.09% Cu, 6.4% Pb, 5.7% Zn (including 97 m @ 654 gpt Ag, 0.16% Cu, 15.3% Pb, 11.4% Zn); 188.5 m @ 59 gpt Ag, 3.1% Pb, 4.8% Zn; 40 m @ 99 gpt Ag, 3.6% Pb, 4.5% Zn; 117.65 m @ 35 gpt Ag, 2.7% Pb, 3.9% Zn; 69.10 m @ 48 gpt Ag, 3.8% Pb, 4.8% Zn; 188.7 m @ 68 gpt Ag, 0.11% Cu, 4.7% Pb, 6.2 % Zn; 160.9 m @ 82 gpt Ag, 0.16% Cu, 3.7% Pb, 6.3% Zn. These intercepts define a silver rich zone, mineralization widths of up to 90 m and maintain several directions open for growth.
  • Tocvan Ventures Corp. completed the latest drilling stage with 1,382 m in seven holes at its Pilar project in Sonora. Metallurgical column leach tests by a non-certified assayer returned gold recoveries above 85%; previous bottle roll studies by SGS had returned between 90.6% and 91.6% Au recoveries.

ON DEALS AND CORPORATE ISSUES

  • Korea Resources through its subsidiary Minera Boleo announced the commencement of proceedings for a closing of its El Boleo mine, in Baja California Sur. This a as a result of the strike by the local miner’s union.

ON SOCIAL RESPONSIBILITY

  • Discovery Silver Corp. released its 2021 Environmental, Social and Governance report. The report highlights $10.3 M in goods and services purchased to Mexican businesses, $4.9 M in salaries and benefits to local employees, and a total workforce of 154 that includes 67 employees and 87 contractors.

On the image below: All rocky outcrops in this picture are part of copper-gold bearing silicified structures on a project in the Sonoran Desert. Picture by Jorge Cirett.

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

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By Jorge Cirett

During the 51st week of the year (December 20th to December 26th, 2021), at least 16 press releases were announced by companies working in Mexico. To note, three companies posted exploration advances on their properties, one obtained an environmental permit to keep operating, three released financing/shares/stock exchange related news, while five companies posted on project development or resource definition and one more on a property sale. ON MEXICO ISSUES, the environmental permit needed to keep Fortuna Silver’s San José mine in operation was finally granted by SEMARNAT. ON EXPLORATION, In Sonora, Colibri Resources completed a 3,122 m RC drilling campaign at Evelyn; Silver Spruce is preparing to submit the environmental permit for El Mezquite. Southern Empire Resources initiated an air-borne magnetic and radiometric geophysical survey. ON MINING, Fortuna Silver Mines was granted the environmental permit to continue its operations at the San Jose mine in Oaxaca. The company had to sue SEMARNAT because the organism was not granting the permit although complaining with all regulations. In the end, not-public negotiations and technical reviews resulted in the permit being granted. ON FINANCING, Alamos Gold is to repurchase up to 30 M of its public shares. Prime Mining was added to the MVIS Global Junior Miners Index. Sonoro Gold closed its non-brokered placement for $3 M. ON RESOURCES AND DEVELOPMENT, Almaden Minerals updated on its 2022 plans at Ixtaca; The environmental permit is being prepared for re-submittal as well as the human rights impact assessment (HRIA) report; A favorable outcome on a Supreme Court lawsuit is expected for H2 2022. Guanajuato Silver Co. provided drilling results for El Cubo and Pinguico in Guanajuato. Avino Silver & Gold Mines filed the mineral resource estimate for La Preciosa, in Durango. Silver Dollar Resources informed on the drilling of 1,134 m at its La Joya project in Durango. Azucar Minerals defined a large lithocap at a new target zone on its El Cobre project, Veracruz. ON DEALS AND CORPORATE ISSUES, GR Silver Mining sold El Salto and El Salto Sur mining concessions (covering 56,910 ha) to Grupo Minero Venturex, for past taxes and a 0.5% NSR. ON SOCIAL RESPONSIBILITY, SilverCrest Metals, Peña Colorada and Industrias Peñoles informed on social measures for the betterment of communities near its operations.

ON MEXICO ISSUES

  • The Mexican environmental regulator (SEMARNAT) finally approved the environmental permit needed to keep Fortuna Silver’s San José mine (in Oaxaca) in operation. Thousands of workers and inhabitants of communities near the mine to be affected by the impending closure appreciate the outcome.

ON EXPLORATION

  • Colibri Resource Corp. completed 3,122 m of reverse circulation (RC) drilling in 22 holes at its Evelyin project in Sonora. The drill program, geological mapping and outcrop sampling were paused for the holidays.  “The Company will resume Phase I drilling at the El Sahuaro and Cerro Rojo targets, as well as other prioritized targets on the property in January, upon receipt and interpretation drill assay results”.
  • Southern Empire Resources Corp. initiated a high-resolution airborne magnetic and radiometric geophysical surveys at its Pedro project in Durango. The geophysical program comprises 384 line-km in 96 flight lines at 50 m spacing. In addition, a nine-hole 2,000 m drill core program is expected to start in January of 2022 in the 1,750 hectares mineral concession.
  • Silver Spruce Resources Inc. informed it is in the reviewing process for submission of the environmental report (Informe Preventivo) on its El Mezquite project in Sonora. The company intends to carry an additional phase of reverse circulation drilling with up to fourteen holes comprising 1,500 to 2,500 m in the 180 hectares project.

ON MINING

  • Fortuna Silver Mines Inc. informed the Secretaría de Medio Ambiente y Recursos Naturales (SEMERNAT) granted a 12 year extension of the environmental impact authorization (abbreviated as MIA, in Spanish) at the San Jose mine in Oaxaca. SEMERNAT had previously denied the extension application and Fortuna had to appeal the decision. “After continued dialogue and technical evaluation, SEMARNAT confirmed operations at the San Jose Mine are conducted in accordance with all environmental obligations” and granted the extension on the existing MIA.

ON FINANCING

  • Alamos Gold Inc. filed for a normal course issuer bid permitting Alamos to purchase for cancellation up to 30 M class A common shares, representing 10% of the company’s public float of the common shares to date. “The price for any repurchased Common Shares will be the prevailing market price at the time of the purchase. All Common Shares purchased by Alamos will be cancelled“ (Mulatos, Sonora).
  • Prime Mining Corp. has been added to the MVIS Global Junior Miners Index as of December 17, 2021 (Los Reyes, Sinaloa).
  • Sonoro Gold Corp. announced the closing of its previously announced non-brokered placement for aggregate proceeds of $3 M. In total the company paid $47.4 K in finder’s fees and 263.4 K in non-transferable Finder’s warrants.

ON RESOURCES AND DEVELOPMENT

  • Almaden Minerals Ltd. presented its plans for 2022. The company is preparing the resubmittal of the environmental permit for the Ixtaca project in Puebla, documenting well beyond the legal and regulatory framework in Mexico for filing in H1 2022, as well as the human rights impact assessment (HRIA) report. Almaden expects a lawsuit at the Supreme Court of Justice of Mexico being used to dispute the constitutionality of the Mexican mineral title regime to be solved favorably, optimistically in H2 2022. Since the last press release in October 2021, three more drill holes have been completed in the South East Alteration zone target near Ixtaca, and “The geologic observations and complete assay data will be analysed and additional mineral studies will be conducted on the core in order to identify any geochemical or mineral vectors in order to plan follow-up work in this area”.
  • Guanajuato Silver Company Ltd. provided drilling results from the El Cubo and Pinguico in Guanajuato. At the Cebolletas and 1850 Stope true width (TW) highlighted intervals comprise 2.00 m @ 1.10 gpt Au, 85 gpt Ag; 0.45 m @ 4.33 gpt Au, 192 gpt Ag; 3.87 m @ 1.38 gpt Au, 124 gpt Ag; 1.40 m @ 0.37 gpt Au, 99 gpt Ag in drilling by GR Silver and 1.62 m @ 2.85 gpt Au, 179 gpt Ag; 2.60 m @ 1.12 gpt Au, 131 gpt Ag; 1.71 m @ 0.46 gpt Au, 152 gpt Ag in drilling by Endeavour Silver. At El Cubo Villapando highlighted TW intervals comprise 6.35 m @ 0.69 gpt Au, 65 gpt Ag; 1.57 m @ 0.88 gpt Au, 98 gpt Ag. At El Pinguico, highlighted TW intervals comprise 4.05 m @ 0.68 gpt Au, 62 gpt Ag; 1.00 m @ 1.50 gpt Au, 122 gpt Ag; 0.55 m @ 2.11 gpt Au, 505 gpt Ag; 1.65 m @ 2.45 gpt Au, 125 gpt Ag; 7.95 m @ 1.35 gpt Au, 39 gpt Ag; 0.75 m @ 8.81 gpt Au, 208 gpt Ag; 8.10 m @ 1.00 gpt Au, 93 gpt Ag; 0.55 m @ 1.91 gpt Au, 75 gpt Ag.
  • Avino Silver & Gold Mines Ltd. filed the mineral resource estimate report on the La Preciosa project in Durango, which the company is proposing to acquire. The indicated mineral resource estimate comprises 17.4 M tonnes @ 176 gpt Ag, 0.34 gpt Au (202 gpt AgEq), containing 99 M Oz Ag, 189 K Oz Au (113 M Oz AgEq), whereas the inferred mineral resource includes 4.4 M tonnes @ 151 gpt Ag, 0.25 gpt Au (170 gpt AgEq), containing 21 M Oz Ag, 35 K Oz Au (24 M Oz AgEq).
  • Silver Dollar Resources Inc. informed 1,134 m of drilling have been completed in five holes at its La Joya project in Durango. “The initial drilling program is focused on target development on the Noria portion of the La Joya property with an emphasis on testing for possible structural extensions of known mineralized zones”.
  • Azucar Minerals Ltd. defined a large area of lithocap alteration in a newly outlined target at El Cobre project in Veracruz.” The new spectral mineral mapping in this area ….. has further defined a strong alteration signature with clear zoning including a central diaspore-pyrophyllite-shallow alunite/dickite and concentric halos of paragonitic and muscovitic white mica and inner propylitic epidote halo”. A soil sampling program is being completed for spectral and geochemical analysis intending to identify vectors to focus a drill program.

ON DEALS AND CORPORATE ISSUES

  • GR Silver Mining Ltd. announced the sale of El Salto and El Salto Sur non-core concessions, acquired from Mako Mining Corp. on March 2021, to the private Mexican company Grupo Minero Venturex S.A. de C.V.. The company received US$1 K, retaining a 0.5% NSR, and leaving Venturex responsible to pay all outstanding concession fees and related fines (Note by editor.- holding large titled mining concessions in Mexico is very expensive). In June GR Silver applied for the reduction of the surface of the 56,910 ha claims, but still has to receive the approval from the Dirección General de Minas (DGM).

ON SOCIAL RESPONSIBILITY

  • SilverCrest Metals inaugurated the Tetuachi bridge across the Sonora River in Arizpe, Sonora.
  • Peña Colorada donated material and equipment to the Biosfera Sierra de Manantlán.
  • Industrias Peñoles invested seven million pesos in the park Bosque Venustiano Carranza in Torreon, Coahuila.

On the image below: epidote filled fractures with calc-sodic halo and late quartz veinlet in a copper project in the Sonoran Desert. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the Second Week of October, 2021

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By Jorge Cirett

During the 41st week of the year (October 11th to October 17th, 2021), at least 25 press releases were announced by companies working in Mexico. To note, six companies posted exploration advances on their properties, six released Q3 reports and one on commencement of mining, two on financing and eight more on project development or resource definition and one more on mining concessions acquisitions. ON MEXICO ISSUES, Mexico’s president presented a proposal to change the law in the energy industry, but also restricting lithium exploration and production to the government. Several other elements could be included in the bill, referred to as “strategic minerals”, without elaborating, although a government party senator named cobalt, niquel, rare earths and even copper. ON EXPLORATION, In Sonora, Benjamin Hill Mining released results from geophysical processing and from fluid inclusion studies that support a buried intrusive source for the mineralization at the Benjamin Hill property; Canuc Resources updated on its deep drilling program at San Javier; Colibri Resources received the permit to drill Evelyn. In Chihuahua, Kootenay silver increased land holdings at its Columba project. In Sinaloa, Vizsla Silver presented drilling results from the Tajitos zone at its Panuco project.   ON MINING, Guanajuato Silver commenced mining at El Cubo, in Guanajuato. First Majestic Silver, Golden Minerals, Gold Resource, Magna Gold, Aura Minerals and Avino Silver & Gold Mines presented its Q3 2021 reports. ON FINANCING, Candelaria Mining informed one of its lenders, Accendo Banco, had its operating permit revoked by Mexican authorities. Xali Gold announced Sun River Gold arranged a financing for US$6.5 M for the tailings project at El Oro, Estado de Mexico. ON RESOURCES AND DEVELOPMENT, GR Silver Mining filed a NI-43-101 technical report on the Plomosas project, Sinaloa. Orla Mining provided an update on the construction of the Camino Rojo Oxide project. Prime Mining released further drilling results from Los Reyes, Sinaloa. Fabled Silver Gold released underground drilling results for Santa Maria, in Chihuahua. GoGold Resources reported results from drilling at El Favor, on its Los Ricos North project located in Jalisco. Golden Tag resources is adding 4,500 m to its 2021 drilling program at San Diego, Durango. Capitan Mining reported results from drilling at El Capitan, in Durango. Zacatecas Silver is drilling the Panuco and Las Cruces areas, at its Zacatecas project, results pending.   ON DEALS AND CORPORATE ISSUES, Argonaut Gold acquired from Fresnillo PLC 4,791 ha in key concessions surrounding its San Agustin mine in Durango. ON SOCIAL RESPONSIBILITY, Minera Media Luna, Peñols, Newmont Peñasquito and Pan American Silver informed on community programs in education and health.

ON MEXICO ISSUES

  • Mexico is far from being a powerhouse in lithium production according to the Statistical Review of World Energy 2021 by BP. Australia, Chile and China hold 81.2% of reserves and 86.5% of lithium production, whereas Argentina, Brazil, Portugal, the United States and Zimbabwe account for 20.5% of reserves and 12.8% of the production. Camimex (Cámara Minera de México) points that the constitutional reform presented by the Mexican president lacks technical support, as even if there are several lithium projects in Mexico, none has proven economic viability. The most visible of these projects, in Sonora, is said to be the largest lithium prospect in the Globe, but its economic viability has still to be proven, as to date there is not a single mine of lithium in clays in the World.
  • Mexico will not grant lithium concessions, said the Mexican president. He stated that even if his electricity reform is not approved by congress, his government has the power to reject any request for a concession to mine lithium. “We will deny any request for a concession to mine lithium and we have the power to do so. We want this to be established in the constitution, lithium belongs to the state”.
  • Nationalistic views with control on “strategic minerals” have been voiced by Morena, the party in power in Mexico. Besides the explicit aim by the President to save all lithium extracting and processing activities for the government, his recent proposal also refers, without elaborating, to be applied in other “strategic minerals”. A senator form Morena mentioned these other minerals could include cobalt, nickel, rare earths and copper, although a spokeswoman from the Economy Secretariat mentioned that the list of strategic minerals was to be provided by the Mexican Geological Survey at a later date.

ON EXPLORATION

  • Canuc Resources Corp. updated on the exploration program at its San Javier project in Sonora. Three holes have been completed and a fourth one is in progress, currently at 922 m of depth and ongoing. Chalcopyrite has been encountered from 302 m and is still visible at 922 m of depth. “The drill hole has intersected a broad zone of variably stockworked and brecciated Barranca sediments with minor andesitic dykes. The Barranca sediments show contact metamorphism from about 461 m and downward, variable amounts of magnetite bearing veinlets, stringers and breccia matrix throughout”. The first two holes intercepted Barranca Formation sedimentary rocks with magnetite veinlets and best intercepts of 2.35 m @ 126 gpt Ag and 2.0 m @ 243 gpt Ag. The third hole was drilled on the Tarahumara Formation volcanic rocks for 500.5 m before being terminated due to drilling problems, intercepting several volcanic lithologies, chalcocite from 38 m of depth and sulfides including chalcopyrite from 332 m. Scattered gold and copper values on short intervals were intercepted, of up to 1.19 gpt Au and 0.41% Cu. Results for the current hole are still pending.
  • Colibri Resource Corp. received the needed permit to drill up to 56 holes at the Evelyn project in Sonora. “The fully funded drill program of up to 10,000 metres is expected to be conducted in two phases”.
  • Kootenay Silver Inc. increased its land holdings at its Columba project in Chihuahua. The company applied for a 10,825 hectare concession, supporting the decision to do so on the high-grade silver intercepts on drilling of the property.
  • Vizsla Silver Corp. presented the results from 23 new drill holes from the Tajitos vein at its Panuco project in Sinaloa. Highlighted true width intercepts comprise 1.38 m @ 1.16 gpt Au, 79 gpt Ag; 1.34 m @ 7.94 gpt Au, 960 gpt Ag; 0.70 m @ 4.16 gpt Au, 2,082 gpt Ag; 2.15 m @ 1.09 gpt Au, 188 gpt Ag; 1.38 m @ 2.83 gpt Au, 527 gpt Ag; 8.7 m @ 0.51 gpt Au, 99 gpt Ag; 1.99 m @ 2.46 gpt Au, 615 gpt Ag; 0.86 m @ 3.37 gpt Au, 315 gpt Ag; 1.39 m @ 3.26 gpt Au, 73 gpt Ag; 1.3 m @ 2.47 gpt Au, 600 gpt Ag; 1.50 m @ 9.90 gpt Au, 2,607 gpt Ag; 0.7 m @ 5.73 gpt Au, 1,115 gpt Ag; 4.38 m @ 1.62 gpt Au, 216 gpt Ag. The footprint of the Tajitos zone has been recognized for 800 m along strike and 300 m of depth.
  • Benjamin Hill Mining Corp. informed the seven kilometer long trend of epithermal mineralization at its Benjamin Hill project in Sonora is related to a well-defined magnetic anomaly. A magnetic high more than 12 kilometers long and 4 km wide lies beneath the surface, crossing the property in a N-NE orientation, with the Au-Cu mineralization parallel to the crest of the magnetic high.  “Our hypothesis explains that the magnetic anomaly corresponds to a partially exhumed fertile pluton. We suggest the mineralization seen at surface was driven by the heat engine of a buried pluton providing hydrothermal fluids that formed mineralized tabular bodies enriched with Au, Ag, and Cu (i.e. veins and breccias), as well as fluids that caused hydrothermal alteration halos (phyllic, epidote-magnetite and argillic alteration)…”.
  • Mammoth Resources Corp. updated on drilling at its Tenoriba project in Chihuahua. The company informed heavy rainfall during August and September is subduing by now, and that they expect an increase in the drilling rate that produced only 420 m of core in 8 weeks. “Mammoth intends to initially drill 2 – 4 holes within each target zone then move to another target zone to drill a similar number of holes”. Results on the first holes are pending.
  • Benjamin Hill Mining Corp. informed on results of fluid inclusion studies at its Benjamin Hill property in Sonora. The salinity and homogenization temperatures point to an epithermal system with an overprinting magmatic influence, and exhumation depths  between 150 m and 750 m in the mineralized structures. “This observation combined with recent geophysical data, supports the hypothesis of the existence of a mineralized plutonic source with a high possibility for Au-Cu metallic enrichment and porphyry potential”.

ON MINING

  • Guanajuato Silver Company Ltd. commenced to process silver-gold ore at its El Cubo mine and mill in Guanajuato. Prior to the start of mill operations, 20 K tonnes of material from El Cubo were mined and stockpiled, to be processed at 750 tonnes per day (tpd) in the plant with a capacity for 1,500 tpd, or over 500 K tonnes per year.
  • First Majestic Silver Corp. presented production results for the third quarte 2021, including figures from its three Mexican operations. At San Dimas, Durango, 214.2 K tonnes were processed at a rate of 2,328 tpd and a grade of 289 gpt Ag, 3.14 gpt Au, recovering 95% Ag, 96% Au to produce 20,767 Oz Au, 1.89 M Oz Ag. At Santa Elena in Sonora 234.9 K tonnes were processed grading 74 gpt Ag, 1.04 gpt Au, recovering 91% Ag, 96% Au to produce 508.6 K Oz Ag, 7,498 Oz Au. At La Encantada in Coahuila, 263.6 K tonnes were processed grading 134 gpt Ag, 0.02 gpt Au, recovering 80% Ag, 90% Au to produce 905 K Oz Ag, 114 Oz Au.
  • Golden Minerals Co. reported third quarter 2021 production from its Rodeo mine in Durango. The mill processed an average of 532 tpd at a grade of 4.0 gpt Au, recovering 76.5% Au to produce 4,777 Oz Au, 12,196 Oz Ag. Golden’s guidance for 2021 continues between 12 K – 14 K Oz Au and 25 K – 30 K Oz Ag.
  • Gold Resource Corp. presented preliminary third quarter 2021 production results. At its Arista mine in Oaxaca 98 K tonnes were milled at a rate of 1,353 tpd, grading 2.68 gpt Au, 91 gpt Ag, 0.37% Cu, 2.3% Pb, 4.8% Zn, to produce 6,933 Oz Au, 265.8 K Oz Ag, 1,808 tonnes Pb, 3,920 tonnes Zn. The cash cost per AuEq Oz was between $250-$290 and the AISC per AuEq Oz between $250-$290.
  • Magna Gold Corp. reported Q3 2021 production results. At San Francisco, in Sonora, 1.72 M tonnes were mined @ 0.46 gpt Au, and 4.52 M tonnes of waste moved (2.62 strip ratio), 1.76 M tonnes were processed @ 0.45 gpt Au, with 25,663 Oz Au placed in the pads to produce 19,102 Oz Au, 7,115 Oz Ag. The guidance for the year remains at 55-65 K Oz Au.
  • Aura Minerals Inc. announced preliminary production results for the third quarter of 2021, including figures from its Mexican operations. At Aranzazu, in Zacatecas, Aura produced 6,404 Oz Au, 106.1 K Oz Ag, 8.15 M Lb Cu, or 26,745 Oz AuEq.
  • Avino Silver & Gold Mines Ltd. released its production report for the third quarter 2021. The Avino mine in Durango successfully recommenced operations at a 1,000 to 1,500 tpd rate (with a 2,500 tpd plant capacity) with 58.2 K tonnes produced, 61,8 K tonnes processed (with aid of some stock piled material) grading 48 gpt Ag, 0.83 gpt Au, 0.58% Cu, recovering 86% Ag, 75% Au, 85% Cu to produce 77.9 K Oz Ag, 1,183 Oz Au, 685.5 K tonnes Cu.

ON FINANCING

  • Candelaria mining Corp. informed one of its lenders, Accendo Banco S.A. had its authorization to operate as a banking institution revoked by the Mexican National Banking and Securities Commission. “The Company has a US$9.0 million loan facility in place with Accendo and to date has drawn US$1.5 million under the loan facility. The Company anticipates that its ability to draw any further funds from its loan facility with Accendo may be impaired by these developments.” (Pinos, Zacatecas).
  • Xali Gold Corp. announced that Sun River Gold has arranged a financing of US$6.5 M to build an put in operation the tailings reprocessing operation at El Oro, Estado de México. “Sun River has the option to acquire 100% of the Tailings Project from Minera CCM by making staged payments totalling US$500,000 (paid), bring the tailings into commercial production by October 31, 2021 (extended to March 31, 2022 due to COVID), and grant to the Company a 5% NPI, Life of Mine royalty (the “Candente Royalty”) as well as the Municipality’s 8% NPI on production from the properties” (El dorado, Nayarit).

ON RESOURCES AND DEVELOPMENT

  • GR Silver Mining Ltd. filed a technical report on the Plomosas project, in Sinaloa. The report envisages 3.4 M Oz Ag, 53 K Oz Au, 73 M Lb Zn, 48 M Lb Pb (10.3 M Oz AgEq) in indicated resources and 8.6 M Oz Ag, 85 K Oz Au, 149 M Lb Zn, 116 M Lb Pb (21.0 M Oz AgEq) in inferred resources. The report includes information from over 100,000 meters of drilling in 476 historic and 80 new drill holes. A 14,000 meters drilling program with seven rigs is in progress.
  • Orla Mining Ltd. provided a construction update for the Camino Rojo Oxide project in Zacatecas. To date Camino Rojo is 89% complete with the ramp up of mining operations according to plan, and the crushing and conveying system, reclaim tunnel, overland conveyor and grasshopper conveyors completed. The Merrill-Crowe plant and refinery are 98% complete. In the year 757.1 K tonnes have been mined at a grade of 0.86 gpt Au, of which 511.2 K tonnes have been crushed and 220.2 K tonnes stacked.
  • Prime Mining Corp. informed on further drilling results from its Los Reyes project in Sinaloa. Highlighted true width (TW) intercepts comprise 11.8 m @ 6.12 gpt Au, 62 gpt Ag, (including 5.5 m @ 12.02 gpt Au, 61 gpt Ag); 13.1 m @ 3.36 gpt Au, 83 gpt Ag; 13.2 m @ 2.18 gpt Au, 31 gpt Ag; 8.4 m @ 2.85 gpt Au, 31 gpt Ag; 1.4 m @ 3.89 gpt Au, 13 gpt Ag in the Zapote South step out holes, and 3.8 m @ 14.51 gpt Au, 82 gpt Ag; 2.2 m @ 3.96 gpt Au, 9 gpt Ag; 2.1 m @ 5.55 gpt Au, 164 gpt Ag; 2.90 m @ 2.07 gpt Au, 248 gpt Ag; 3.9 m @ 1.90 gpt Au, 78 gpt Ag; 0.9 m @ 3.86 gpt Au, 448 gpt Ag; 4.0 m @ 1.55 gpt Au, 230 gpt Ag in the Tahonitas step out drilling. The boiling level at Zapote, with its corresponding higher grades, has been identified 50 m below previous reports, expanding the exploration targets.
  • Fabled Silver Gold Corp. released further assay results from its Santa Maria property in Chihuahua. The underground drilling was successful in intersecting a geochemically anomalous intrusive rock with a 54.6 m interval grading 0.02 gpt Au, 9 gpt Ag (including three intervals 1.5, 1.5 and 1.2 m in width grading 20, 21 and 23 gpt Ag respectively) and another hole returning 4.5 m @ 13 gpt Ag.
  • GoGold Resources Inc. reported results of 10 new holes from El Favor east zone, extending the mineralized strike by over 450 meters at its Los Ricos North project in Jalisco. Some of the core-length intervals intercepted comprise 27.0 m @ 0.44 gpt Au, 64 gpt Ag; 3.0 m @ 0.51 gpt Au, 86 gpt Ag; 22.3 m @ 0.31 gpt Au, 118 gpt Ag (including 1.0 m @ 3.96 gpt Au, 944 gpt Ag); 7.7 m @ 0.46 gpt Au, 147 gpt Ag; 24.2 m @ 0.45 gpt Au, 105 gpt Ag (including 2.0 m @ 4.16 gpt Au, 794 gpt Ag); 6.1 m @ 1.32 gpt Au, 328 gpt Ag; 2.1 m @ 0.63 gpt Au, 179 gpt Ag; 11.4 m @ 0.26 gpt Au, 136 gpt Ag (including 6.0 m @ 0.38 gpt Au, 179 gpt Ag); 20.1 m @ 0.22 gpt Au, 68 gpt Ag (including 1.0 m @ 2.59 gpt Au, 563 gpt Ag); 18.3 m @ 0.30 gpt Au, 98 gpt Ag (including 5.6 m @ 0.90 gpt Au, 255 gpt Ag). El Favor East mineralization is now known for 900 m, of which 600 m have been drilled.
  • Golden Tag Resources Ltd. announced the addition of 4,500 meters of diamond drilling to its exploration program for 2021 at its San Diego project in Durango. That meterage is in addition to the 4,716 meters already sunk and reported in 2021.   The program discovered epithermal mineralization near the surface, the following are some selected core-length intervals: 273.65 m @ 0.10 gpt Au, 43 gpt Ag, 0.2% Pb, 0.3% Zn (76 gpt AgEq); 50.17 m @ 0.05 gpt Au, 31 gpt Ag, 0.9% Pb, 0.7% Zn; 99.53 m @ 0.09 gpt Au, 27 gpt Ag, 0.7% Pb, 0.6% Zn; 25.55 m @ 0.08 gpt Au, 37 gpt Ag, 0.3% Pb, 0.6% Zn; 86.64 m @ 0.03 gpt Au, 39 gpt Ag, 0.9% Pb, 0.6% Zn; 169.83 m @ 0.04 gpt Au, 32 gpt Ag, 0.6% Pb, 0.8% Zn; 116.45 m @ 0.03 gpt Au, 42 gpt Ag, 0.6% Pb, 0.7% Zn; 134.37 m @ 0.13 gpt Au, 20 gpt Ag, 0.6% Pb, 0.7% Zn; 191.57 m @ 0.04 gpt Au, 35 gpt Ag, 0.8% Pb, 0.8% Zn.
  • Capitan Mining Inc. reported results form five reverse circulation (RC) drill holes at El Capitan, in Durango. Highlighted core length intervals comprise 6.1 m @ 0.15 gpt Au; 13.7 m @ 0.32 gpt Au; 44.2 m @ 0.13 gpt Au, 3 gpt Ag; 6.1 m @ 0.12 gpt Au, 5 gpt Ag; 10.7 m @ 0.12 gpt Au, 27.4 m @ 0.23 gpt Au; 62.5 m @ 0.38 gpt Au, 4 gpt Ag; 35.1 m @ 0.14 gpt Au; 21.3 m @ 0.19 gpt Au; 18.3 m @ 0.15 gpt Au; 6.1 m @ 0.29 gpt Au; 13.7 m @ 0.39 gpt Au, 4 gpt Ag; 85.3 m @ 0.16 gpt Au; 19.8 m @ 0.15 gpt Au, 4 gpt Ag.
  • Zacatecas Silver Corp. provided an update on the drilling program at Panuco, within its Zacatecas property in Zacatecas. Four drill holes were completed for a total of 1,088m at Panuco, while two more were completed at Las Cruces vein system and one more is ongoing. Results are pending.

ON DEALS AND CORPORATE ISSUES

  • Argonaut Gold Inc. has acquired key mineral concessions from Fresnillo PLC for a cash consideration of US$5.75 M. The acquired package comprises a 4,791-ha concession and four key small concessions totalling 27 ha, which will allow Argonaut to expand the pit, increase mineral reserves and extend mine life.

ON SOCIAL RESPONSIBILITY

  • Minera Media Luna informed on educational programs presented at communities in Guerrero.
  • Peñoles presented its company-wide water saving strategy on all its activities.
  • Newmont Peñasquito updated on activities with positive results in near-by communities.
  • Panamerican Silver informed on community health programs near its La Colorada mine in Zacatecas.

On the image below: Galena bearing milky quartz vein on a project in the Sonoran Desert. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the Second Week of July, 2021

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By Jorge Cirett

During the 27th week of the year (July 5th to July 11th, 2021), at least 22 press releases were announced by companies working in Mexico. To note, six companies posted exploration advances on their properties, four on quarterly production and one about the end of an illegal blockade 17 months long, one posted on financing, five more on project development or resource definition and one posted an update on a law suite. ON MEXICO ISSUES, the illegal blockade on Americas Gold and Silver Cosalá operations in Sinaloa was terminated. Mexico has fallen 13 places on the Fraser’s Index on Mining Attractiveness, affected by perceptions on security and rule of law. ON EXPLORATION, in Sonora, Benjamin Hill Mining released surface assay results high in Cu and Au; Tocvan Ventures released results from RC drilling at Pilar. In Sinaloa, Brigadier Gold released drilling and underground sampling results from Picachos. In Durango, Canasil started drilling at Nora. In Zacatecas, Zacatecas Silver signed surface access agreements to the San Gill zone at its Zacatecas Silver project. In Oaxaca, Madoro Metals updated on exploration at Yautepec. ON MINING, GoGold Resources, Gatos Silver, Endeavour Silver and Torex Gold presented second quarter 2021 production results. Americas Gold and Silver signed an agreement with several ministries to reopen Its Cosalá operations in Sinaloa.  ON FINANCING, Gold79 Mines commenced trading on the OTCQB Venture Market in USA. Minaurum Gold closed a financing round for C$9.2 M. ON RESOURCES AND DEVELOPMENT, Southern Silver released drilling results from Cerro Las Minitas in Durango. GR Silver Mining, reported drill hole results from Plomosas in Sinaloa. Capitan Mining reported RC holes results from Peñoles, Durango. Guanajuato Silver provided drilling results from Pinguico, Guanajuato. Fabled Silver reported underground drilling results from Santa Maria, Chihuahua. ON DEALS AND CORPORATE ISSUES, Excellon Resources informed on a legal suite regarding the Miguel Auza mine in Zacatecas. ON SOCIAL RESPONSIBILITY, Fresnillo PLC, Minera Autlán and Newmont Peñasquito informed on activities supporting sports, the environment and community equipment in different localities.

ON MEXICO ISSUES

  • Mexico has fallen 13 places in the Fraser’s Index of Mining attractiveness from 2008 to 2020. Investment also saw a 42.8% reduction in the same period, including some effect by the pandemic. Security, labor regulations, political instability, lack of mining concessions and a nationalization streak in the current government were cited as deterrents to investment in the country. Those viewpoints are reflected in less investment, less employment and fewer opportunities to find new orebodies, factors that will lead to  reductions in production and taxes to be paid in the coming years.
  • The illegal blockade on Americas Gold and Silver Cosalá operations is off. After 17 months of illegal blockade, the negotiations aided by the federal government can hardly be called a success. Events like this one add to the deterioration on the global perception of Mexico as a good place for mining investment.
  • The AIMMGM (Asociación de Ingenieros de Minas, Metalurgista y Geólogos de México) stated through its president Sergio Almazán, that investment in the Mexican mining sector has been affect by the lack of certitude.

ON EXPLORATION

  • Benjamin Hill Mining Corp. released assay results from surface sampling at the Caracahui, Caracahui Norte and Sonora Copper areas from its Sonora Gold property in Sonora. Some of the highlighted comprise: 0.1 gpt Au, 12.2% Cu, 80 gpt Ag; 1.7 gpt Au, 10.2% Cu, 15 gpt Ag; 4.4% Cu, 8 gpt Ag; 0.2 gpt Au, 4.3% Cu, 25 gpt Ag; 1.2 gpt Au, 2.4% Cu, 98 gpt Ag; 0.1 gpt Au, 1.9% Cu, 3 gpt Ag; 0.6 gpt Au, 1.5% Cu, 24 gpt Ag; 2.2 gpt Au, 0.9% Cu, 17 gpt Ag; 15.9 gpt Au, 0.4% Cu, 3 gpt Ag; 3.3 gpt Au, 0.1% Cu, 47 gpt Ag; 2.5 gpt Au, 0.1% Cu, 65 gpt Ag; 2.4 gpt Au, 0.5% Cu, 7 gpt Ag; 2.2 gpt Au, 0.9% Cu, 17 gpt Ag; 2.0 gpt Au, 0.3% Cu, 53 gpt Ag. “The recent advancement of exploration on the Sonora Gold concession has identified expansive copper mineralization along broadly continuous structural trends which have not yet been fully explored”.
  • Canasil Resources Inc. announced the start of the 2021 drill program at the Nora project in Durango. The initial focus is to test below, between and on strike extensions from high-grade Au and Ag intercepts from the 2020 program. Highlighted true width intercepts from the previous campaign include 2.40 m @ 4.78 gpt Au, 351 gpt Ag; 1.49 m @ 11.86 gpt Au, 378 gpt Ag and 3.05 m @ 3.71 gpt Au, 489 gpt Ag, with Pb, Zn, Cu credits.
  • Brigadier Gold Ltd. released drilling and underground sampling results from its Picachos project in Sinaloa. Highlighted underground sampling results comprise 0.3 m @ 31.4 gpt Au, 11 gpt Ag, 0.2% Cu, 0.5% Pb, 2% Zn; 3.2 m @ 7.43 gpt Au, 0.1% Pb, 0.2% Zn; 0.9 m @ 4.64 gpt Au, 0.1% Pb, 0.1% Zn; 0.5 m @ 38.88 gpt Au, 22 gpt Ag, 0.4% Cu, 1.7% Pb, 1.5% Zn; 1.0 m @ 12.79 gpt Au, 8 gpt Ag, 0.1% Cu, 0.9% Pb, 0.9% Zn. A surface trench returned 8 m @ 2.14 gpt Au, 0.1% Pb. Highlighted core length intervals comprise 6.5 m @ 0.26 gpt Au, 6 gpt Ag; 60.3 m @ 0.41 gpt Au, 0.2% Zn (including 4.5 m @ 0.56 gpt Au, 0.1% Pb, 0.1% Zn and 7.5 m @ 0.98 gpt Au, 0.1% Zn); 113 m @ 0.19 gpt Au, 0.1% Pb, 0.2% Zn (including 1 m @ 6.89 gpt Au, 0.1% Zn; 4 m @ 1.85 gpt Au; 1 m @ 5.51 gpt Au, 0.1% Zn); 123 m @ 0.27 gpt Au, 0.1% Pb, 0.2% Zn (including 4 m @ 1.08 gpt Au; 4 m @ 1.10 gpt Au, 0.4% Pb, 1.7% Zn; 1 m @ 3.51 gpt Au, 0.1% Pb).
  • Madoro Metals Corp. provided an update on recent exploration results from its Yautepec project in Oaxaca. A previously unknown 7 km long trend of epithermal alteration was found in the southern part of the project by company geologists. Highlighted results comprise 0.10 m @ 12.35 gpt Au, 1,250 gpt Ag in a quartz vein grab sample within a stockwork complex 400 by 200 m in the Tecolote zone; 0.10 m vein @ 0.54 gpt Au, 0.16% Cu, 1.3% Zn on the Southern Dike zone.
  • Zacatecas Silver Corp. completed access agreements with landowners at the San Gill breccia zone and San Gill vein system at its Zacatecas Silver project in Zacatecas. Environmental reports have been sent to SEMARNAT for the drilling of the Panuco and San Gill systems, and a third one is being prepared for El Cristo zone.
  • Tocvan Ventures Corp. released results from six reverse circulation drill holes at its Pilar project in Sonora. The phase II program sunk over 3,500 m in 20 holes, highlighted core length intervals comprise 44.22 m @ 0.41 gpt Au, 4 gpt Ag (including 7.63 m @ 1.66 gpt Au, 7 gpt Ag); 47.27 m @ 0.75 gpt Au, 5 gpt Ag (including 12.20 m @ 1.12 gpt Au and 19.82 m @ 1.06 gpt Au).

ON MINING

  • GoGold Resources Inc. reported production of 315.6 K Oz Ag, 3,170 Oz Au, 120 tonnes Cu during the second quarter of 2021 at its Parral tailings project in Chihuahua.
  • Americas Gold and Silver Corp. signed an agreement with the Mexican Ministries of Economy, Interior and Labour committing to a reopening of its Cosalá operations in Sinaloa, shut by an illegal blockade spanning 17 months. “After the long period of denied access, the agreement contemplates immediate right to possession of the property with a joint inspection coordinated by the Ministry of Labor this Thursday, so that the mine can restart operations in a safe and sustainable manner”.  
  • Gatos Silver Inc. released its production report for the second quarter of 2021, which constitute a record for the company. A total of 240 K tonnes were mined, 230.6 K tonnes were milled at a daily rate of 2,535 tonnes, with an average grade of 322 gpt Ag, 0.35 gpt Au, 2.51% Pb, 4.41% Zn, with recoveries of 89% Ag, 63% Au, 90% Pb, 75% Zn, to produce 2.1 M Oz Ag, 1.5 K Oz Au, 11.2 M lb Pb, 14.5 M Lb Zn in Pb and Zn concentrates.
  • Endeavour Silver Corp. reported production results for the second quarter 2021. During the period 1.07 M Oz Ag, 11,166 Oz Au were produced. The El Cubo mine in Guanajuato was sold to Guanajuato Silver Corp..
  • Torex Gold Resources Inc. released production results for Q2 2021. At its El Limón-Guajes mine in Guerrero, a total of 118,050 Oz Au was produced, with an average plant throughput of 11,980 tpd, average underground ore mined of 1,420 tpd and an average open pit ore mined of 12,430 tpd.

ON FINANCING

  • Gold 79 Mines Ltd. commenced trading on the OTCQB Venture Market in the United States, operated by the OTC Markets Group Inc., under the stock symbol AUSVF (Taviche , Oaxaca).
  • Minaurum Gold Inc. closed a previously announced bought deal public offering, for gross proceeds of C$9.2 M. Due to the demand, the offering was upsized from the original gross proceeds of C$7 M. The offering included an investment from Crescat Capital (Alamos Silver, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Southern Silver Exploration Corp. released drilling results that extend mineralization at the South Skarn and La Bocona areas at its Cerro Las Minitas project in Durango. True width core intervals comprise 1.8 m @ 161 gpt Ag, 0.1 gpt Au, 4.9% Pb, 3.0% Zn (including 0.4 m @ 422 gpt Ag, 0.4 gpt Au, 13.2% Pb, 9.1% Zn); 2.6 m @ 159 gpt Ag, 0.1 gpt Au, 2.4% Pb, 3.5% Zn; 14.0 m @ 162 gpt Ag, 0.2 gpt Au, 1.4% Pb, 0.5% Zn; 1.1 m @ 227 gpt Ag, 0.1 gpt Au, 3.7% Pb, 1.9% Zn. As of May 2019, the indicated resources stood at 37.5 M Oz Ag, 40 M Lb Cu, 303 M Lb Pb, 897 M Lb Zn; and inferred resources at 45.7 M Oz Ag, 76 M Lb Cu, 253 M Lb Pb, 796 M Lb Zn.
  • GR Silver Mining Ltd. reported results from the final drill holes to be incorporated in to the incoming resource estimation on the Plomosas mine area of the Plomosas project in Sinaloa. True width highlighted intervals comprise 29.5 m @ 1.13 gpt Au, 0.1% Zn (including 9.1 m @ 2.12 gpt Au, 0.1% Pb, 0.1% Zn); 6.4 m @ 0.81 gpt Au, 0.1% Zn; 3.6 m @ 163 gpt Ag, 0.05 gpt Au, 6.4% Pb, 3.7% Zn, 0.2% Cu; 6.1 m @ 120 gpt Ag, 0.48 gpt Au, 2.8% Pb, 0.7% Zn, 0.1% Cu; 0.9 m @ 5.24 gpt Au, 0.2% Pb, 0.2% Zn; 11.8 m @ 328 gpt Ag, 0.19 gpt Au, 0.5% Pb, 1.2% Zn; 1.0 m @ 680 gpt Ag, 0.04 gpt Au, 0.6% Pb, 2.4% Zn; 4.9 m @ 143 gpt Ag, 1.2% Pb, 4.3% Zn.
  • Capitan Mining Inc. reported results for four reverse circulation drill holes from the Capitan deposit at its Peñoles project in Durango. Highlighted intervals comprise 56.4 m @ 0.58 gpt Au, 14 gpt Ag (including 10.7 m @ 0.99 gpt Au, 16 gpt Ag); 38.1 m @ 0.26 gpt Au; 6.1 m @ 0.28 gpt Au, 5 gpt Ag; 187.5 m @ 0.23 gpt Au, 1 gpt Ag (including 29.0 m @ 0.51 gpt Au, 3 gpt Ag); 10.7 m @ 0.25 gpt Au, 4 gpt Ag; 41.1 m @ 0.24 gpt Au, 5 gpt Ag. Capitan Mining expects to complete a 6,000 m reverse circulation program during the summer whilst continuing exploration work on additional targets.
  • Guanajuato Silver Company Ltd. provided drilling results from El Pinguico, Guanajuato. Highlighted core length results comprise 1.65 m @ 2.45 gpt Au, 125 gpt Ag; 7.95 m @ 1.35 gpt Au, 39 gpt Ag (including 0.75 m @ 8.81 gpt Au, 208 gpt Ag); 8.10 m @ 1.00 gpt Au, 93 gpt Ag (including 0.90 m @ 5.96 gpt Au, 476 gpt Ag). GS Silver is planning a 3,800 m 18-hole strong drill program, with the aim of estimating resources.
  • Fabled Silver Gold Corp. announced results from underground drilling at the Santa Maria property in Chihuahua. Results comprise 9.90 m @ 0.08 gpt Au, 17 gpt Ag, minor (<0.1%) Pb-Zn-Cu; 1.20 m @ 0.08 gpt Au, 13 gpt Ag, minor Pb-Zn-Cu; 18.0 m @ 0.24 gpt Au, 20 gpt Ag, minor Pb-Zn-Cu; 2.40 m @ 0.06 gpt Au, 36 gpt Ag, minor Pb-Zn-Cu; 0.80 m @ 0.24 gpt Au, 302 gpt Ag, 0.1% Pb, 0.25% Zn; 6.30 m @ 0.04 gpt Au, 17 gpt Ag, minor Pb-Zn-Cu.

ON DEALS AND CORPORATE ISSUES

  • Excellon Resources Inc. informed on the legal action regarding the Antigua concession within its Evolution project in Durango. A subsidiary of Excellon, San Pedro Resources SA de CV has been mandated in court to pay US$23 M in damages for not having in operation the Miguel Auza mine. “Excellon understands from an initial electronic notice that San Pedro’s appeal of this decision to the federal courts of Mexico was dismissed on July 1, 2021, despite the decision not being supported by the evidence, facts or law”.

ON SOCIAL RESPONSIBILITY

  • Fresnillo PLC informed on the re-activation of sports programs in Coahuila.
  • Minera Autlán supports an environmental project in Hidalgo.
  • Fresnillo PLC backs the environment in Durango, aiding the El Porvenir sustainable forest.
  • Newmont Peñasquito installed a solar powered pumping system at El Nuevo Vergel, Zacatecas.

On the image below:  Structure in andesitic rocks exposed on a road cut in Sonora. Picture by Jorge Cirett.

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

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By Jorge Cirett

During the 15th week of the year (April 12th to April 18th, 2021), as a sign of the strong current activity, at least 43 press releases were announced by companies working in Mexico. To note, ten companies posted exploration advances on their properties, seven presented mining related news, six posted on financing or share options (including C$2.35 M, $3 M, C$14.1 M, C$5.6 M and $25 M), eight more on project development or resource definition and three posted on corporate issues. ON MEXICO ISSUES, Francisco Quiroga, the ex-secretary of Mining has been appointed ambassador in Germany. The Sonora Mining Cluster has two new female counselors. Napoleon Gomez Urrutia and its SNTMMS Union have been condemned to pay US$54 M to some of its affiliates. A new Coordination has been created in the Economy Secretariat to promote mining. The CTM Union opposes the outsourcing reform that would decrease the participation of workers in the profits of mining companies. ON EXPLORATION, In Sonora, Silver Spruce signed a LOI on the Diamante 1 and Diamante 2 projects; Ridgestone announced its exploration plan for the Rebeico property; Tocvan Ventures commenced phase II RC drilling at Pilar; Carlyle Commodities released good drilling results from Cecilia; Orogen informed its Lola and Sarape properties are being drilled by partners; Canuc Resources released information on the first drill hole on the present campaign at its San Javier Au-Ag project. In Chihuahua, Monarca Minerals signed a surface access agreement for its San Jose project; Kootenay Silver updated on drilling of its Columba project. In Sinaloa, Viszla Silver released drilling results from the Napoleon zone at its Panuco project. In San Luis Potosi and Zacatecas Advance Gold released results from auger sampling at several salars. ON MINING, Magna Gold, Fortuna Silver Mines, Sierra Metals, Excellon and First Majestic Silver released Q1 2021 production results. Consolidated Zinc announced the commencement of concentrate production from the recently refurbished plant at Plomosas in Chihuahua. ON FINANCING, Colibri Resources, Sonoro Gold, Santacruz Silver Mining, Heliostar Metals and Candelaria Mining released news on financing (with C$2.35 M, $3 M; $14.1 M, C$4 M and up to $25 M respectively). Defiance Silver completed its uplisting to the OTCQX Best Market ON RESOURCES AND DEVELOPMENT, Equinox Gold commenced the development of the Bermejal underground mine in Guerrero. Xali Gold submitted permit applications for the Mexico Mines Tailings project in El Oro, Estado de Mexico. Gatos Silver presented good drilling results from both extensions of the Cerro Los Gatos deposit in Chihuahua. Fabled Silver Gold released results from drilling at Santa Maria, Chihuahua. SilverCrest Metals released high-grade drilling results from several veins at Las Chispas, Sonora. Almaden Minerals is conducting an induced polarization survey at the Ixtaca deposit in Puebla. GoGold Resources released drilling results from El Favor zone at its Los Ricos North project in Jalisco. Golden Tag Resources released results from drilling at its San Diego property in Durango.   ON DEALS AND CORPORATE ISSUES, VanGold Mining closed with Endeavour Silver the acquisition of the El Cubo mine and mill complex in Guanajuato. Silver Spruce Resources signed a LOI with Colibri Resource on the Diamante 1 and Diamante 2 properties in Sonora. Empress Royalty executed a $5 M Silver Stream agreement with Telson Mining. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • Francisco Quiroga Fernández, Mining ex-subsecretary was appointed ambassador of Mexico in Germany. Rare in the present administration, he’s a competent professional with experience in the private industry, and more than capable to develop and strengthen political and economic ties between the two countries.  
  • The Sonora Mining Cluster named Silvia Álvarez and Maria López Rosas as new counselors to the organism.
  • The Sindicato Nacional de Trabajadores Mineros, Metalúrgicos y Similares de La República Mexicana (a strong Mining Union) and its leader Napoleón Gómez Urrutia have lost a legal law suit and have been condemned by the Junta Federal de Conciliación y Arbitraje to pay US$54 M. The Union received these funds from the sale of the Cananea mine 15 years ago, and was supposed to deliver that money to the at the time workers of the company in charge. The union failed to deliver the funds to the miners.
  • The Mexican president ordered by decree the creation of the Coordination of Extractive Activities on the Economy Secretariat. Said unit is to coordinate the mining activities of the State and actions to promote national and foreign investments in mining, among other activities.
  • The CTM Union (Confederación de Trabajadores de México) opposes the reform on outsourcing that would lower the amount the miners receive as participation on the company’s annual profits.  

ON EXPLORATION

  • Silver Spruce Resources Inc. signed a letter of intention (LOI) on two properties in Sonora, Diamante 1 and Diamante 2 covering 1,057 hectares. Historical assays from samples in the Diamante 1 and Diamante 2 properties, which display epithermal intermediate sulfidation mineralization have returned up to 39.8 gpt Au, 3,460 gpt Ag, 7.3% Pb, 5.6% Zn. Diamante 1 has already six main targets, including the La Prieta-El Aguaje vein system, which runs for 2,000 m averaging 1 m in width. At Diamante 2 The Calton area displays two vein 900 m and 1,100 m in length, ranging from 0.30 m to 1.70 m in width. The El Cumbro-Mezquite Raizudo veins follow a structural trend 900 m long, displaying an average width of 1 meter.
  • Advance Gold Corp. released results from auger drilling sampling at all the salars it recently acquired in Zacatecas and San Luis Potosí. The 0.5 m to 1 m of depth samples returned highlighted results of up to 650 ppm boron (B), 1.91% Potassium (K) and 620 ppm Lithium (Li). The average grade of the samples was 247 ppm B, 1.17% K and 215 ppm Li.
  • Monarca Minerals Inc. executed and ratified by a Notary Public the surface access agreement with both the Ejido and Colonia on its San Jose silver project in Chihuahua. The company is now to apply for the environmental permit that will allow it to conduct its planned 5,000 m drilling campaign.
  • Ridgestone Mining Inc. announced an exploration plan for its 3,459 hectares Rebeico project in Sonora. The current phase will comprise geologic mapping, sampling and prospecting, with focus on the New Year zone, the Santa Elena outcrop and El Cobre mine.
  • Tocvan Ventures Corp. announced the start of phase II of its drilling program at the Pilar project in Sonora. The two-stage 4,000 m reverse circulation (RC) drill program will focus first on the “definition and expansion of the Main Zone, which during Phase I returned 94.6-meters at 1.6 g/t Au including 9.2m at 10.8 g/t Au and 38 g/t Ag”, and then to test the new targets across the property.
  • Kootenay Silver Inc. reported it has completed 12 core drill holes totalling 1,800 m as part of its 5,000 m campaign at its Columba project in Chihuahua. Kootenay has tested the F vein and is now testing an area east of the J-Z zone.
  • Carlyle Commodities Corp. released the first batch of drill results from the Cecilia project in Sonora. The program consisted of seven holes, of which results have been received for five. The best intercept was 24.2 m @ 1.51 gpt Au. Other core-length highlighted intervals comprise 1.30 m @ 0.69 gpt Au; 5.95 m @ 0.20 gpt Au, 3.10 m @ 0.52 gpt Au; 9.45 m @ 0.23 gpt Au; 1.00 m @ 0.55 gpt Au; 3.45 m @ 0.35 gpt Au; 4.30 m @ 0.29 gpt Au; 6.10 m @ 0.43 gpt Au; 3.00 m @ 0.87 gpt Au. “The first drill program from Carlyle and Riverside was focused on targeting the hydrothermal system identified at two principal elevations: 2,200 m and 1,900 m, respectively corresponding to the San Jose Target and the North Breccia Target…… to test the continuity of the mineralized structures at shallow depth”.  
  • Orogen Royalties Inc. announced the commencement of drilling programs on two of its properties in Sonora. At La Lola, partner Heliostar Metals Ltd. has initiated a 1,500 m drilling program. At the 57.8 square km Sarape project, Orogen and partner Hochschild PLC commenced a planned 3,000 m program. Eight holes will be drilled on 2.5 km of the Sarape vein. “In 2019, nine holes drilled within a 380-metre-long segment of the vein defined a structural dilation zone at 100-350 metres depth (Figure 2). In this zone the vein thickens to 23.6 metres in width..…. A deeper horizon will also be drilled to identify if the grade of the vein improves with depth”.
  • Canuc Resources Corp. informed on drilling advance at its San Javier Ag-Au project in Sonora. The first hole of a planned 6,000 m program was ended at 89.5 m in a fault zone. It intersected brecciated sedimentary rocks with stockwork veining and three intervals of massive magnetite breccia. “The 20-hole program is designed to test at least 4 magnetic features that underlie areas where a 2020 mapping and rock sampling program identified silver, gold and copper mineralization. At surface, the host rocks for three of these features are found to be magnetite breccia”. The program is focused on magnetic anomalies identified by a previous survey.
  • Viszla Silver Corp. released drilling results from step out drilling at the southern extension of the Napoleon prospect at its Panuco project in Sinaloa. The Napoleon vein has been mapped for more than 2.5 km and has four rigs drilling at the time. Highlighted true width intercepts comprise 4.46 m @ 890 gpt Ag, 19.99 gpt Au, 0.7% Pb, 1.8% Zn (including 0.92 m @ 3,804 gpt Ag, 91.91 gpt Au, 1.5% Pb, 3.5% Zn); 1.92 m @ 105.9 gpt Ag, 7.28 gpt Au, 0.7% Pb, 2.9% Zn (including 1.45 m @ 131 gpt Ag, 9.39 gpt Au, 0.8% Pb, 3.1% Zn)

ON MINING

  • Fortuna Silver Mines Inc. released production results for the first quarter 2021, including figures from its Mexican operations. At San José, in Oaxaca, 259.8 K tonnes @ 217 gpt Ag, 1.36 gpt Au were milled, recovering 90.8% Ag, 90.5% Au to produce 1.65 M Oz Ag, 10,301 Oz Au.
  • Consolidated Zinc Ltd. announced the 2021 zinc concentrate “benchmark treatment charge (TC) has been agreed between the major miners and smelters at US$159.00/t of concentrate, a reduction of 47% from last year’s benchmark treatment charge of US$299.75/t”. Treatment charges in 2020 represented 33% of total operating costs (before by-product credits) being the single largest operating cost (Plomosas, Chihuahua).
  • Magna Gold Corp. informed production levels have benefited from the accelerated stripping program, resulting in month to month growth in gold production, with 3,085 ounces in January, 2,670 ounces in February and 4,030 ounces in March. Magna anticipates the mine will return to full scale commercial production by June of this year, with 2021 guidance in the range of 55,000 to 65,000 Oz Au. During the Q1 2021, 619 K tonnes were mined @ 0.34 gpt Au, with 5.2 M tonnes of waste moved (8.40 strip ratio) to produce 9,785 Oz Au, 8.1 K Oz Ag.
  • Sierra Metals Inc. reported first quarter 2021 production reports, including figures from its Mexican properties. At Bolivar, in Chihuahua, 371.6 K tonnes were processed @ 0.77% Cu, 19.7 gpt Ag, 0.19 gpt Au, recovering 82.8% Cu, 83.6% Ag, 69.6% Au, to produce 5.2 M Lb Cu, 197 K Oz Ag, 1,591 Oz Au (7.3 M Lb CuEq). At Cusi, also in Chihuahua, 76.6 K tonnes were processed @ 15.2 gpt Ag, 0.16 gpt Au, 0.22% Pb, recovering 80.9% Ag, 39.6% Au, 81.5% Pb, to produce 313 K Oz Ag, 155 Oz Au, 298 K Lb Pb (334 K AgEq Oz Ag).
  • Consolidated Zinc Ltd. announced the first concentrate from the newly refurbished plant at its Plomosas property in Chihuahua has been produced.
  • Excellon Resources Inc. released Q1 2021 production results from the Platosa mine in Durango. At the site 21,212 tonnes were mined, 21,764 tonnes were milled @ 524 gpt Ag, 5.35% Pb, 6.73% Zn, recovering 89.7% Ag, 81.8% Pb, 74.7% Zn to produce 328.7 K Oz Ag, 2.1 M Lb Pb, 2.4 M Lb Zn, or 516.7 K Oz AgEq.
  • First Majestic Silver Corp. produced during the Q1 2021 2.9 M Oz Ag, 23,873 Oz Au, or 4.5 M Oz AgEq from its three mines in Mexico: San Dimas in Durango, Santa Elena in Sonora and La Encantada in Coahuila. The company completed 39,552 m in exploration drilling during the quarter, with 10 rigs at San Dimas, seven rigs at Santa Elena and two rigs at La Encantada.

ON FINANCING

  • Colibri Resource Corp. has closed a non-brokered private placement for CAD$2.35 M in gross profits. (Evelyn, Sonora).
  • Sonoro Gold Corp. has increased its non-brokered private placement to raise an aggregate of $3 M thorough the exercise of over allotment options (Cerro Caliche, Sonora).
  • Santacruz Silver Mining Ltd. closed its non-brokered private placement offering, for gross proceeds of CDN$14.1 M (Carrizales, Hidalgo).
  • Defiance Silver Corp. successfully completed an uplisting to the OTCQX Best Market (San Acacio, Zacatecas).
  • Heliostar Metals Ltd. is increasing the size of its C$4 M marketed private placement to raise up to C$5.6 M (La Lola, Sonora).
  • Candelaria Mining Corp. intends to raise up to $25 M to fund exploration activities at the Caballo Blanco district in Veracruz, and the Pinos project in Zacatecas.

ON RESOURCES AND DEVELOPMENT

  • Equinox Gold Corp. is commencing development of the Bermejal underground mine at its Los Filos project in Guerrero.
  • Xali Gold Corp. submitted permit applications for the Mexico Mines Tailings project in El Oro, Estado de México. The permits are to allow both the transportation and re-processing of the tailings at a new 25 hectares plant site located 5 Km from the current location. Xali’s is to pay the El Oro municipality an 8%  net profit interest (NPI). The project has an inferred resource of 1.27 M Tonnes grading 2.94 Au g/t, 75.12 Ag g/t, containing 119,900 Oz Au and 3.06 M Oz Ag.
  • Gatos Silver Inc. reported drilling results of delineation drilling at Cerro Los Gatos in Chihuahua. The program has demonstrated continuity in both the southeast and northwest projections of the current reserve. Highlighted true width drill results include: 9.5 m @ 0.11 gpt Au, 51 gpt Ag, 2.1% Pb, 3.1% Zn; 3.4 m @ 0.12 gpt Au, 122 gpt Ag, 5.0% Pb, 9.8% Zn, 0.2% Cu; 5.4 m @ 0.25 gpt Au, 121 gpt Ag, 1.5% Pb, 2.9% Zn; 7.2 m @ 0.14 gpt Au, 106 gpt Ag, 3.5% Pb, 3.4% Zn, 0.1% Cu; 2.6 m @ 0.21 gpt Au, 327 gpt Ag, 9.2% Pb, 3.8% Zn, 0.14% Cu; 12.0 m @ 0.15 gpt Au, 44 gpt Ag, 1.1% Pb, 4.0% Zn, 0.15% Cu; 2.8 m @ 0.20 gpt Au, 111 gpt Ag, 1.6% Pb, 3.9% Zn, 1.3% Cu; 1.9 m @ 0.12 gpt Au, 132 gpt Ag, 3.2% Pb, 9.9% Zn, 0.4% Cu; 7.2 m @ 0.06 gpt Au, 25 gpt Ag, 1.0% Pb, 10.3% Zn, 0.2% Cu; 5.7 m @ 0.17 gpt Au, 152 gpt Ag, 3.0% Pb, 4.4% Zn, 0.30% Cu.
  • Fabled Silver Gold Corp. released drilling results from its Santa Maria property in Chihuahua. The last sample on the last drill hole returned 75.9 gpt Ag, with 6.4 m of similar material awaiting results. Fabled is making a reinterpretation of previous work and testing the new targets identified. The ongoing 8,000 m drill program has been increased to at least 9,200 m. “This program will be focused underground to delineate the Santa Maria Central Structure with multi underground drill stations being prepared”.
  • SilverCrest Metals Inc. released additional in-fill and expansion drill results s from the Babi Vista vein splay, Babi Vista vein, Granaditas 1 vein, Granaditas 2 vein, and adjacent hangingwall and footwall veins in the Babicanora Area of its Las Chispas Project in Sonora. The results are from 78 holes totaling 29,308 m completed since the last news release for these veins, in areas with mineral resources or in close proximity. Average results for the Babi Vista vein splay comprise 0.91 true width @ 16.12 gpt Au, 1,351 gpt Ag, with individual intercepts of up to 1.04 m @ 185.65 gpt Au, 13,959 gpt Ag. Babi Vista Footwall and Granaditas 1 average 1.04 m @ 12.89 gpt Au, 1,884 gpt Ag, with the highest intercept running 0.40 m @ 114.0 gpt Au, 78,872 gpt Ag (7.89% Ag). The Babi Vista and Granaditas 2 vein average 0.67 m @ 4.56 gpt Au, 414 gpt Ag, while the Babi Vista Hangingwall averages 0.43 m @ 2.55 gpt Au, 249 gpt Ag.
  • Almaden Minerals Ltd. is conducting an induced polarization geophysical survey at the Ixtaca deposit in Puebla. “The work is designed to help define drill targets beneath the area of hydrothermal alteration called the Southeast Alteration (SE) zone and at depth beneath the Ixtaca deposit (“Ixtaca Deeps”). It is hoped that this geophysical survey, along with past survey results, will identify potential zones of veining like those in the Ixtaca deposit. The discovery drill hole in the original Ixtaca deposit area was planned in part based on high resistivity and chargeability results obtained in an earlier IP geophysical survey”.
  • GoGold Resources Inc. released results from six diamond drill holes from El Favor area at its Los Ricos North project in Jalisco. Highlighted core-length intervals comprise 69.3 m @ 108 gpt Ag, 0.49 gpt Au (including 15.3 m @ 392 gpt Ag, 1.76 gpt Au); 9.6 m @ 112 gpt Ag, 0.39 gpt Au; 59.0 m @ 119 gpt Ag, 0.32 gpt Au (including 5.0 m @ 361 gpt Ag, 0.90 gpt Au); 2.8 m @ 110 gpt Ag, 0.16 gpt Au; 16.1 m @ 97 gpt Ag, 0.21 gpt Au; 12.0 m @ 86 gpt Ag, 0.09 gpt Au; 3.2 m @ 204 gpt Ag, 0.15 gpt Au; 7.2 m @ 135 gpt Ag, 0.76 gpt Au; 23.3 m @ 92 gpt Ag, 0.22 gpt Au; 12.9 m @ 254 gpt Ag, 0.81 gpt Au (including 8.2 m @ 392 gpt Ag, 1.25 gpt Au).
  • Golden Tag Resources Ltd. released results from the first three holes of a 4,500 m campaign at its San Diego project in Durango. A hole in the Fernandez zone returned 50.17 m @ 105 gpt AgEq; Another hole intersected 127.3 m of skarn/Fernandez style mineralization, intersecting 35.46 m @ 0.06 gpt Au, 30 gpt Ag, 0.14% Pb, 0.24% Zn, 0.01% Cu (52 gpt AgEq) and 91.84 m @ 0.07 gpt Au, 15 gpt Ag, 0.31% Pb, 0.34% Zn, 0.01% Cu (49 gpt AgEq). Other holes intercepted 1.11 m @ 0.90 gpt Au, 142 gpt Ag, 0.13% Pb, 0.21% Zn, 0.02% Cu; 3.25 m @ 0.02 gpt Au, 237 gpt Ag, 0.41% Pb, 0.82% Zn, 0.08% Cu; 1.10 m @ 0.28 gpt Au, 195 gpt Ag, 1.70% Pb, 1.92% Zn, 0.07% Cu; 2.69 m @ 0.05 gpt Au, 355 gpt Ag, 0.30 % Pb, 0.41% Zn, 0.02% Cu; 8.41 m @ 0.02 gpt Au, 24 gpt Ag, 0.61% Pb, 0.49% Zn, 0.06% Cu.

ON DEALS AND CORPORATE ISSUES

  • VanGold Mining Corp. closed the acquisition of El Cubo mine and mill complex in Guanajuato with Endeavour Silver Corp..  The deal involved the payment of US$7 M in cash plus VAT and the delivery of 21.33 M shares of VanGold and a promissory note for $2.5 M a year from closing. El Cubo has 508 K tonnes grading 194 gpt Ag, 2.44 gpt Au containing 3.17 M Oz Ag, 39,860 Oz Au as indicated resources and 1.45 M tonnes @ 214 gpt Ag, 2.78 gpt Au containing 10 M Oz Ag, 129,900 Oz Au as inferred resources.
  • Silver Spruce Resources Inc. signed a letter of intention (LOI) with Colibri Resource Corp. to acquire up to 50% interest in four concessions in Sonora, comprising two properties, Diamante 1 and Diamante 2 covering 1,057 hectares. The projects are separated by 700 meters, and in close proximity to other Colibri properties. The initial cash payment by Silver Spruce is to be of $75 K (Note.- The details of the deal are lengthy and involve a third party, please take a look to the appropriate press release if interested in it).
  • Empress Royalty Corp. executed the US$5 M silver stream agreement on the Telson Mining Corp. owned Tahuehueto project in Durango. “Empress has now executed the US$5M silver stream agreement on production from Telson’s Tahuehueto project in Mexico. The US$5M Stream is on 100% of the payable silver production from Tahuehueto for the first 1,250,000 payable ounces; thereafter, the percentage will stepdown to 20% of the payable silver production to a maximum of 10 years from first production after which the Stream terminates”.

ON SOCIAL RESPONSIBILITY

  • No Relevant News.

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

On the image below:  Disseminated and vein constrained sulfides in a porphyritic intrusive rock in split diamond core from Cerro San Pedro in San Luis Potosi. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico; Highlights on the Third Week of March, 2021

/ Gambusino Prospector / Leave a comment

By Jorge Cirett

During the 11h week of the year (March 15th to March 21st, 2021), at least 34 press releases were announced by companies working in Mexico. To note, eight companies posted exploration advances on their properties, four presented quarterly results, five posted on financing or share options (including C$12 M, $10.3 M, C$14.1 M and C$80.4M), eight more on project development and five on corporate issues. ON MEXICO ISSUES, 25 Mining projects in Mexico are in line for 2028. At PDAC, a minister from Canada asked for a stable and predictable business environment in Mexico. The president of Mexico, Andres Manuel Lopez Obrador, threatened mining companies with voiding their concessions if they break the law. ON EXPLORATION, in Baja California, One World Lithium announced the incoming drilling at its Salar del Diablo project. In Sonora, Kootenay Silver informed of excellent grades in trenching at its Maria Elena project; Tocvan Ventures updated on exploration at Pilar; Prismo Metals filed a technical report for Los Pavitos project. In Durango, Mithril Resources informed on a high-grade gold intercept at Copalquin. In Guerrero, Pantera Silver commenced exploration in Nuevo Taxco. In Zacatecas, Zacatecas Silver is preparing a resource estimate on the Panuco deposit.  ON MINING, Comet Resources Excellon Resources, Starcore International and Sierra Metals released quarterly and/or full year 2020 reports. Activities at McEwen’s El Gallo mine in Sinaloa, which is in residual leaching, were suspended by an illegal blockade. ON FINANCING, Empress Royalty, Southern Silver, Almaden Minerals, Santacruz Silver Mining and Premier Gold released news on financing. ON RESOURCES AND DEVELOPMENT, Almaden Minerals is resuming exploration at the Ixtaca property in Puebla. Discovery Metals released drilling results from Cordero in Chihuahua. Chesapeake Gold received approval for a bulk drilling program at Metates, Durango. GoGold Resources released drilling results from Los Ricos North in Jalisco. Southern Silver is doubling the size of its drilling program at Cerro Las Minitas in Durango. Consolidated Zinc released the updated mineral resource for the Plomosas mine in Chihuahua. Prime Mining released drilling results for Los Reyes in Sinaloa. Azucar Minerals released results from drilling at El Cobre, Veracruz. ON DEALS AND CORPORATE ISSUES, Radius Gold optioned the Maricela property in Sonora. Sailfish is to prepare an updated mineral resource for Gavilanes in Durango. VanGold Mining signed the definitive agreement with Endeavour Silver for the acquiring the El Cubo mine in Guanajuato. Tarachi Gold completed the acquisition of El Magistral tailings project. Prospero Silver is changing name to Keon Capital. ON SOCIAL RESPONSIBILITY, Grupo Mexico and Fresnillo PLC informed on actions related to social betterment of communities near its operations.

ON MEXICO ISSUES

  • 25 Mining projects in Mexico are in line for 2028 with a total of US$7.8 B (US$7,800 M in Mexican notation). El Arco in Baja California (US$2,900 M), Media Luna in Guerrero (US$496 M), Expansion Herradura (US$490 M), Orysivo in Chihuahua (US$465 M), Juanicipio in Zacatecas (US$440 M) and Sonora Lithium (US$420 M) are among the largest of these.   
  • At the virtual PDAC (Prospectors and Developers Association of Canada) 2021 conference Mary Ng, Minister of Small Business, Export Promotion and International Trade for Canada and Tatiana Clouthier, head of the Economy Secretariat in Mexico met and spoke about the strengthening of commercial ties between the two countries, particularly in the energy and mining sectors. Minister Ng stressed the need to keep a stable and predictable business environment for Canadian companies working in Mexico, especially in mining, and expressed its worries for the recently approved energy law and its possible negative impact.
  • In his press conference the president highlighted the cases of Americas Gold and Silver, with his view that it is trying to evade the law on unionized work, and that of First Majestic which he accused of trying to evade taxes (as in other industries, the president disregards any effect on investment and employment by his rigid stance). He suggested the Canadian government should help make the companies comply as in Canada.

ON EXPLORATION

  • Pantera Silver Corp. has mobilized its field personnel to the Nuevo Taxco Silver project in Guerrero. The 1,100 hectares project displays 21 veins 150-350 meters in length within a 135 hectares portion of the property. Of 395 historical samples, 119 grade over 100 gpt Ag, including 18 between 500-900 gpt Ag and three samples over 1,000 gpt Ag. An initial 1,600 meter program is to test the 21 veins area.
  • One World Lithium Inc. is to start phase three drilling on April 15, 2021 at is Salar del Diablo project in Baja California. “If the results of DDH-3 warrant, the DDH-4 will be drilled in the same area…. DDH-3 (diamond drill hole) is located approximately 50 kilometers to the south of DDH-2” completed on the previous campaign.
  • Zacatecas Silver Corp. is to prepare a current resource estimate for the Panuco silver deposit at the Zacatecas Silver project in Zacatecas. The historic inferred mineral resource hosts 3.95 M tonnes @ 136 gpt Ag, 0.14 gpt Au, 0.12% Pb, 0.11% Zn (153.2 gpt AgEq), containing 19.5 M Oz Ag. Re-assaying of 15% of the core intervals used in the historic resource calculation is being performed to assist in the new resource estimation, as well as bench scale metallurgical test of mineralized core material.    
  • Kootenay Silver Inc. informed on the discovery of significant gold at its Maria Elena project in Sonora. Highlighted results from sampling in 8 trenches comprise 33 m @ 2.67 gpt Au (including  9 m @ 5.29 gpt Au, 1 m @ 23.7 gpt Au) in trench 6; 24 m @ 1.81 gpt Au (including 8 m @ 3.98 gpt Au, 1 m @ 17.25 gpt Au) in trench 4; 9 m @ 2.01 gpt Au (including 1 m @ 15.45 gpt Au) in trench 2. “Gold mineralization is hosted by stock works of quartz and quartz carbonate veins formed by conjugate sets of veins …. Numerous conjugate vein sets and associated stock work zones occur within a 1.5 by 1.5-kilometer area hosted within a diorite intrusion and are the source of the placer gold historically mined on the property”.
  • Canasil Resources Inc. informed on drilling at La Esperanza project in Zacatecas. Three holes in the La Esperanza  vein have already intersected the vein as projected, while a fourth is in progress. While the vein outcrops for 150 m, it has now been intersected for 525 m along strike and 350 m to depth.
  • Tocvan Ventures Corp. updated on exploration at its Pilar project in Sonora. On the Main Zone Extension, a 350 m section presents “altered vein zones” 5 to 20 m in width, strong oxidation and 800 m of anomalous soil samples with up to 106 and 911 ppb Au, and rock grab samples with 9.3 gpt Au. At the 4-Trench there is a 600 m trend that presents veins for 400 m of strike untested by drilling, rock grab samples with up to 24 gpt Au and historical artisanal workings for 350 m of strike.
  • Mithril Resources Ltd. informed on the drilling at El Refugio target in the Copalquin project in Durango. An exceptional core length interval of 4.17 m @ 62.0 gpt Au, 445 gpt Ag was drilled, and is characterized by abundant black sulfide and kaolinite, as well as by the presence of visible gold.
  • Prismo Metals Inc. filed a NI 43-101 technical report for its Los Pavitos project in Sonora. The 5,289-hectare concession is west of the Alamos district, displaying epithermal low sulfidation veins and orogenic gold shears. Highlighted rock sample results include 0.30 m @ 40.8 gpt Au, 0.65 m @ 4.86 gpt Au, 0.20 m @ 1.57 gpt Au, 2.5 m @ 1.5 gpt Au, 2.5 m @ 2.41 gpt Au, grab samples of up to greater than 10.0 gpt Au and dump samples with up to 5.26 gpt Au.

ON MINING

  • Comet Resources Ltd. presented its second half 2020 financial report. In the period the company spent US$2.35 M in mineral exploration and administration, raised US$3 M, acquired the Santa Teresa project in Baja California with 88.6 K Oz Au JORC compliant inferred resources.
  • McEwen Mining Inc. informed that activities at the El Gallo project in Sinaloa (currently on residual leaching) have been suspended as results of an illegal blockade of the main access to the property by members of nearby communities. “El Gallo has operated harmoniously with the local communities since mining started in 2012, having demonstrated a long-standing track record of supporting local communities. In this context, the current situation is surprising. The site remains minimally staffed to maintain appropriate safety and security, and the environmental systems. McEwen Mining is negotiating for a peaceful resolution to the issues”.
  • Excellon Resources Inc. reported financial results for the Q4 and full year 2020. During the quarter silver production at the Platosa mine in Durango increased to 355.6 K Oz, the strongest production since 2014, at an all-sustaining cost of $21.19 per Oz Ag. For the year, the revenue of $26.2 M was impacted by the temporary suspension related to the Covid pandemic. On the second half of the year 43.3 K tonnes were mined, producing 1.08 M Oz Ag.
  • Starcore International Mines Ltd. reported results for the quarter ended in January 2021. At the San Martin mine in Queretaro, 57.3 K tonnes were milled @ 1.66 gpt Au, 23 gpt Ag, recovering 88.8% Au, 57.1% Ag, to produce 2.7 K Oz Au, 23.8 K Oz Ag or 3,063 Oz AuEq at cash cost US$1,042 per Oz AuEq and an AISC of US$1,361 per Oz AuEq.
  • Mexus Gold US. Informed it has received the necessary explosives permit to mine the high grade Mexus II and Julio vein structures at its Santa Elena mine in Sonora.
  • Sierra Metals Inc. reported financial results for 2020. At Bolivar in Chihuahua, cash cost per CuEq Lb was $1.35 and AISC per CuEqLb was $1.88. At Cusi in Chihuahua, cash cost per AgEqOz was $15.70 and AISC per AgEqOz was $28.18. The company hold cash and cash equivalents of $71.5 M at the end of the period.

ON FINANCING

  • Empress Royalty Corp. entered into an agreement with Red Cloud Securities Inc. and Canaccord Genuity Corp. and a syndicate of underwriters that shall purchase shares of the company for gross proceeds of C$12 M. (Pinos, Zacatecas).
  • Endeavour Silver Corp. announced its common shares will be added to the S&P/TSX Composite and the NYSE Arca Gold Miners Index (Terronera, Jalisco).
  • Southern Silver Exploration Corp. raised $14.2 million in Summer of 2020. “Since the closing of the equity raise and the working interest purchase in September 2020, the Company has received a total of $2,428,228 from shareholder exercises of share purchase warrants, inclusive of the recent 6,000,000 share purchase warrant exercise by Electrum Global Holdings LP for proceeds of $480,000. Additionally, the Company has received $477,470 from the exercise of incentive stock options and finders’ warrants”.
  • Almaden Minerals Ltd. announced a US$10.3 M registered direct offering (Ixtaca, Puebla).
  • Santacruz Silver Mining Ltd. has increased the size of its previously announced non-brokered private placement offering, intending to raise now up to CDN$14.1 M (Zimapan, Hidalgo).
  • Premier Gold Mines Ltd. announced its wholly-owned subsidiary i-80 Gold Corp. closed its previously publicized private placement for aggregate gross proceeds of C80.4 M. “Premier remains focused on creating i-80 as a Nevada-focused mining company…” (Mercedes, Sonora).
  • Minera Alamos Inc. informed the board of directors approved the issuance of 7.25 M options to management, directors, employees and consultants, tied to production milestones (Santana, Sonora).
  • First Majestic Silver Corp. received regulatory consent to extend its share repurchase program to up to 10 M shares or 4.5% of the outstanding shares of the company (San Dimas, Durango).

ON RESOURCES AND DEVELOPMENT

  • Almaden Minerals Ltd. has resumed exploration in the area of the Ixtaca project in Puebla. Initial work is to focus in identifying drill targets in the SE Alteration Zone, 1 km SE from the Ixtaca deposit. Argillic alteration with hyperspectral signatures for kaolinite, alunite and buddingtonite is present, along with several areas of veining with anomalous pathfinder elements.
  • Discovery Metals Corp. announced results from 14 diamond drill holes targeting high-grade veins at its Cordero project in Chihuahua. Highlighted intercepts comprise 1.3 m @ 1,581 gpt Ag, 0.15 gpt Au, 9.9% Pb, 5.4% Zn; 8.9 m @ 267 gpt Ag, 0.91 gpt Au, 0.9% Pb, 0.8% Zn (including 1.0 m @ 1,280 gpt Ag, 4.24 gpt Au, 1.6% Pb, 3.4% Zn); 1.3 m @ 1,607 gpt Ag, 2.06 gpt Au, 5.2% Pb, 8.0% Zn; 10.0 m @ 92 gpt Ag, 0.09 gpt Au, 2.4% Pb, 3.4% Zn in the Josefina vein; 2.9 m @ 992 gpt Ag, 0.73 gpt Au, 12.9% Pb, 2.4% Zn in the South corridor and 4.0m @ 377 gpt Ag, 0.28 gpt Au, 7.1% Pb, 2.7% Zn (including 1.4 m @ 552 gpt Ag, 0.33 gpt Au, 11.0% Pb, 3.4% Zn); 1.2 m @ 241 gpt Ag, 0.52 gpt Au, 4.6% Pb, 10.4% Zn; 2.8 m @ 207 gpt Ag, 0.15 gpt Au, 3.7% Pb, 7.7% Zn on the Todos Santos vein. “The Company has completed 58,600 m (148 holes) as part of its expanded 65,000 m Phase 1 drill program. Assays from 24 holes are pending”.
  • Chesapeake Gold Corp. has received the final permits to commence a bulk drilling program at the Metates project in Durango. The company plans to drill 2,500 meters to recover 10 tonnes of large diameter (PQ) core for metallurgical testing to support a potential sulfide heap leach mine operation.
  • GoGold Resources Inc. released results from four more drill holes on the Casados area of the Los Ricos North project in Jalisco. Highlighted core length results comprise 10.3 m @ 0.43 gpt Au, 116 gpt Ag; 21.4 m @ 0.44 gpt Au, 98 gpt Ag; 49.1 m @ 0.54 gpt Au, 250 gpt Ag; 13.3 m @ 0.67 gpt Au, 204 gpt Ag; 5.1 m @ 1.94 gpt Au, 1,270 gpt Ag (including 0.8 m @ 10.31 gpt Au, 6,842 gpt Ag; 52.0 m @ 0.47 gpt Au, 127 gpt Ag; 8.3 m @ 0.94 gpt Au, 279 gpt Ag; 23.6 m @ 0.58 gpt Au, 156 gpt Ag (including 10.9 m @ 1.05 gpt Au, 307 gpt Ag); 33.6 m @ 0.23 gpt Au, 95 gpt Ag. The Casados vein dips 45 degrees, is hosted in andesitic tuffs and is exposed for 400 m in the surface.
  • Southern Silver Exploration Corp. is doubling the size of the current drilling program from 10,000 m to 20,000 m on the Cerro Las Minitas project in Durango. The current program has completed 28 core holes totaling 12,040 m since September 2020. “Drilling will continue with two drills targeting the east side of the Cerro where to date three near-surface sulphide lenses with Bonanza-grades of silver have been identified”. Assays from 11 drill holes are pending.
  • Consolidated Zinc Ltd. announced its updated mineral resource for the Plomosas project in Chihuahua. The resource estimate is JORC compliant and contains indicated mineral resources of 152 K tonnes @ 13.3% Zn, 6.0% Pb, 33.6 gpt Ag containing 20.2 K tonnes Zn, 9.1 K tonnes Pb, 164.6 K Oz Ag and inferred resources of 788 K tonnes @ 13.0% Zn, 2.9% Pb, 17.2 gpt Ag containing 102.1 K tonnes Zn, 22.7 K tonnes Pb, 435.5 K Oz Ag.
  • Prime Mining Corp. reported initial results from its 15,000 m drilling program at Los Reyes, in Sinaloa. The first hole at Guadalupe East intersected 20.1 m @ 3.25 gpt Au, 380 gpt Ag (including 6.5 m @ 6.51 gpt Au, 587 gpt Ag), this intercept is 150 m below any previous drilling; 3.8 m @ 3.69 gpt Au, 305 gpt Ag (including 2.1 m @ 6.18 gpt Au, 507 gpt Ag). Chip sampling of adularia bearing banded quartz veins in a new area returned several mineralized intervals, including 3 m @ 29.8 gpt Au, 1,132 gpt Ag.
  • Azucar Minerals Ltd. released results from drilling at the Porvenir zone at the El Cobre project in Veracruz. Some of the highlighted results comprise 77.65 m @ 0.26 gpt Au, 0.16% Cu (including 43.55 m @ 0.37 gpt Au, 0.21% Cu and 25.55 m @ 0.45 gpt Au, 0.23% Cu) in one hole and 16.70 m @ 0.10 gpt Au, 0.09% Cu; 37.00 m @ 0.12 gpt Au, 0.08% Cu.

ON DEALS AND CORPORATE ISSUES

  • Radius Gold Inc. has optioned the Maricela group of properties (155 ha) in Sonora. Radius can earn 100% interest in the property by paying US$1.25 M over three years. A total of US$30 K has been paid to date. The owner retains a 1% NSR which can be bought back for US$1 M. Mineralization is of low sulfidation epithermal style with 1-3 m massive quartz veins and stockworks over 10 meters in width hosted in andesitic volcanic rocks and felsic dykes emplaced sub-parallel to mineralized structures.
  • Sailfish Royalty Corp. announced on early February “that Mine Development Associates (“MDA”), a division of RESPEC, out of Reno, Nevada, was hired to prepare an updated mineral resource estimate on Gavilanes. The updated mineral resource estimate is a key milestone for the planned spinout of Gavilanes and the Company is pleased to report that MDA is expecting to complete their work in early Q2 2021”.
  • VanGold Mining Corp. signed a definitive purchase agreement with Endeavour Silver Corp. to acquire El Cubo mine and mill complex located 8 km from its El Pinguico project in Guanajuato. “According to the Company’s recently announced PEA from Behre Dolbear and Company (USA) Inc., (“Behre”) the Combined Project contains total indicated resources of 718,655 tonnes grading 160 gpt Ag and 1.90 gpt Au, or 306 gpt AgEq, which equates to 7.2 M oz AgEq; and total inferred resources of 1,453,000 tonnes grading 214 gpt Ag and 2.78 gpt Au, or 435 gpt AgEq, which equates to 20.4 M oz AgEq”. VanGold will pay $15 M as follows: $500 K (paid), $7 M on closing, anticipated to by the end of March 2021, $5 M on VanGold shares on closing and $2.5 M in promissory notes due 12 months from closing.
  • Tarachi Gold Corp. completed the acquisition from Manto Resources S.A. de C.V. of the Magistral mill and tailings project in Durango. A PEA is to be conducted to determine if modifications are needed on the mill’s flowsheet prior to commissioning. The tailings basin is to be tested with an auger drill rig, with six confirmation holes and eleven in-fill holes. Underground diamond core drilling has been progressing on the Jabali concession at its Tarachi project in Sonora.
  • Prospero Silver Corp. board of directors has approved the name change of the company to Keon Capital Inc., subject to the acceptance of the TSX Venture Exchange (Bermudez, Chihuahua).

ON SOCIAL RESPONSIBILITY

  • Fundación Grupo México and Granjas Carroll delivered fruit bearing trees to producers in Puebla.
  • Minera San Julian donated medical equipment in Chihuahua.

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

On the image below:  Core from Azure Mineral’s Oposura project in Sonora. Picture by Jorge Cirett.

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

/ Gambusino Prospector / Leave a comment

By Jorge Cirett

During the 5th week of the year (February 1st to February 7th, 2021), there were at least 47 press releases by companies working in Mexico. To note, seven companies posted exploration advances on their properties, five more informed on various mining items, seven posted on financing or share options, eleven on project development and nine more on corporate issues. ON MEXICO ISSUES, mining production fell 3.1% in Mexico to November 2020, although some metals and States saw an increase. Some projects with development funding include, Las Chispas, San Antonio (both in Sonora) and Avino in Durango. ON EXPLORATION, in Baja California, Comet Resources updated on exploration at its Santa Teresa project. In Sonora, Silver Spruce is to conduct an airborne Lidar survey over its Mezquite and Jackie properties. In Chihuahua, Radius Gold conducted a geophysical survey at Plata Verde; Reyna Silver released high-grade results from trench and rock chip samples at its Batopilas project. In Zacatecas, Alien Metals is to map and sample a new area on its San Celso project. Advance Gold released drill results from Tabasqueña. ON MINING, Santacruz Silver presented quarterly and full year 2020 reports. Golden Minerals poured the first gold at Rodeo. Excellon Resources released high-grade results from exploration and expansion drilling at Platosa. McEwen Mining presented its production guidance for 2021. ON FINANCING, Silver Dollar, Sonoro Gold and Solaris Resources informed on issues related to their shares; Mammoth Resources, Plymouth Realty and Bacanora Lithium announced the closing/opening of financing rounds for $688 K, $7.4 M and $65 M respectively (and $31 M more on Bacanora Lithium shares bought by Ganfeng); Prospero Silver is consolidating shares 3 to 1. ON RESOURCES AND DEVELOPMENT, Silver Tiger Metals discovered a new mineralized zone at its El Tigre project. Gold Resource released high-grade underground drilling results from its Don David mine. Silver Dollar completed a reinterpretation of the model at La Joya while selecting new targets. Impact Silver bought a surface drill rig and an underground drill rig to use at Zacualpan. Endeavour Silver updated mineral resource estimates for Guanaceví, Bolañitos, El Compas, Terronera, El Cubo, Guadalupe y Calvo, and Parral properties. Fabled Silver released drill results from Santa María. GoGold informed on drilling results at the La Trini deposit at its Los Ricos North project. Sailfish Royalty described the Gavilanes project. Xtierra released high-grade drilling results on the Victor vein at the Bilbao project. Azucar Minerals released results from one drill hole at the Porvenir zone of the El Cobre project.  ON DEALS AND CORPORATE ISSUES, Endeavour Silver optioned The Guadalupe y Calvo project to Ridgestone Mining. Mako Mining informed on the sale of La Trinidad to GR Silver Mining. Silvercorp Metals acquired La Yesca project in Nayarit. Bacanora Lithium informed Ganfeng increased its position in Bacanora to 28.88% with the acquisition of US$31 M in shares. SilverCrest Metals released a positive FS for Las Chispas. Almaden Minerals provided a scope on the advancement of the Ixtaca project, given the refusal of development by the permitting authority. Magna Gold announced exploration activities have commenced at Margarita, a second stage of drilling is planned at La Pima and mapping and a geophysical survey are planned for Q4 at Los Muertos. Orla Mining updated on exploration activities on its 163,000 hectares land package. Plymouth Royalty is to acquire the Peñasco Quemado, Pluton and La Frazada projects from Silver One. ON SOCIAL RESPONSIBILITY, Grupo Mexico and Minera Peñasquito informed on actions that benefit the communities.

ON MEXICO ISSUES

  • Mining production in Mexico has fallen 3.1% during January to November of 2020, compared with the same period a year before. Gold, zinc and silver production grew by 3.8%, 3.4% and 1.2% respectively, but production in several other commodities fell, like iron pellets (25.9%), coking coal (21.3%), sulphur (15.1%), lead (13.7%), copper (7.3%), gypsum (5.1%).
  • Mexican projects that have received funding for development include Las Chispas in Sonora (SilverCrest, US$120 M), San Antonio in Sonora (Osisko, US$53.5 M) and Avino in Durango (Avino Silver, US$25 M).
  • Mining companies with significant exploration budgets in Mexico include First Majestic Silver, with US$27.6 M, Pan American Silver with US$42 M (not all in Mexico), Fortuna Silver with US$10 M, Alamos Gold with US$9 M, Endeavour Silver with US$8.4 M, Capstone Mining with US$5.0 M.
  • The Gold production in Chihuahua increased 15% in 2020. In November of last year 1,713 kilograms of gold were extracted, only behind Sonora (3,120 Kg) and Guerrero (1,998 kg).

ON EXPLORATION

  • Vizsla Resources Corp. provided results from eight new holes at the Napoleon prospect of the Panuco project in Sinaloa. Highlighted true width results comprise 86 gpt Ag, 18.45 gpt Au, 1.3% Pb, 3.4% Zn (1,909 gpt AgEq), including 0.43 m @ 307 gpt Ag, 101.0 gpt Au, 2.9% Pb, 10.5% Zn (10,019 gpt AgEq); 6.0 m @ 63 gpt Ag, 1.54 gpt Au, 0.2% Pb, 1.2% Zn (237 gpt AgEq), including 1.45 m @ 216 gpt Ag, 5.80 gpt Au, 0.3% Pb, 3.9% Zn.
  • Advance Gold Corp. released information on drilling at its Tabasqueña project in Zacatecas. Highlighted core length intervals comprise 0.40 m @ 0.04 gpt Au, 41 gpt Ag, 2.0% Pb, 2.9% Zn and 0.20 m @ 0.79 gpt Au, 32 gpt Ag, 2.5% Pb, 3.8% Zn.
  • Comet Resources Ltd. provided an update on the Santa Teresa project in Baja California. Comprehensive mapping of historical drill collars, shafts and artisanal workings was conducted, with mapping identifying numerous narrow vein structures at surface. A strong association between pyrrhotite and gold has been noted.
  • Radius Gold Inc. published the results of recent geophysical surveys at its Plata Verde project in Chihuahua. “New IP/Resistivity sections show significant structural zones extending to depth directly below the known large scale historic silver mines”. Radius is now targeting extensions and repetitions of the shallow dipping breccias, stockworks and disseminations within the historic mines, as well as the sub-vertical feeder zones interpreted below.
  • Alien Metals Ltd. informed mapping and sampling is to take place at the Nueva Andromeda claim, adjacent to its San Celso project in Zacatecas. The environmental drilling permit is being awaited.
  • Reyna Silver Corp. released high-grade results from its surface and trench sampling program at its Batopilas project in Chihuahua. Based on ASTER satellite image analysis and structural mapping, 258 trench, rock chip and soil samples were collected. Two new veins were found, one with native silver, typical of Batopilas, and the first gold rich vein in the property. High-resolution hyperspectral imagery shows distinctive alteration mineralogy that coincides with the new and the known veins with additional anomalies. Highlighted channel silver results comprise 42,306 gpt, 18.078 gpt, 6,320 gpt, 2,880 gpt, 2,060 gpt, 1,510 gpt, 989 gpt, 841 gpt, 405 gpt, 400 gpt 310 gpt and two soil samples returning 662 gpt and 305 gpt Ag. Highlighted channel sample gold results comprise 21.40 gpt, 18.35 gpt, 18.30 gpt, 16.90 gpt, 15.40 gpt, 15.20 gpt, 12.90 gpt, 12.40 gpt, 7.82 gpt, 3.77 gpt, 3.24 gpt, 2.03 gpt, 1.03 gpt, 1.02 gpt.
  • Silver Spruce Resources Inc. signed an airborne Lidar survey contract on its El Mezquite and Jackie properties in Sonora. The survey will produce a high resolution digital elevation and surface models topographic map and an orthorectified color aerial photography.

ON MINING

  • Golden Minerals Co. reported the first gold pour from its Rodeo project in Durango. The pour occurred nearly three weeks after the first loads of material were trucked from the Rodeo site to the company’s Velardeña oxide plant for processing.
  • Excellon Resources Inc. released assay results from underground drilling at its Platosa mine in Durango. Relevant exploration and expansion results include core length intervals of 4.2 m @ 741 gpt Ag, 7.5% Pb, 4.8% Zn (including 2.0 m @ 1,153 gpt Ag, 12.3% Pb, 6.1% Zn, 1.7 gpt Au); 2.4 m @ 728 gpt Ag, 21.2% Pb, 17.8% Zn. Some current definition and infill drilling comprise: 2.4 m @ 441 gpt Ag, 6.4% Pb, 10.6% Zn; 2.8 m @ 181 gpt Ag, 5.0% Pb, 6.5% Zn; 2.4 m @ 728 gpt Ag, 21.2% Pb, 17.8% Zn; 4.2 m @ 267 gpt Ag, 7.1% Pb, 14.5% Zn; 4.2 m @ 585 gpt Ag, 3.4% Pb, 3.3% Zn; 4.2 m @ 741 gpt Ag, 7.5% Pb, 4.8% Zn, 0.9 gpt Au.
  • Mexus Gols US. continues to haul and crush mineralized material to be laid on section 2 of the leach pad at its Santa Elena mine in Sonora.
  • McEwen Mining Inc. presented its production guidance for 2021, including from its Mexican operations. At El Gallo, in Sinaloa, the residual leaching operations are expected to produce between 4,500 and 5,900 Oz AuEq. The feasibility study for the Fenix Au-Ag project in Sinaloa was presented recently, with a 51% after-tax IRR, $90.8 M NPV@8% and a 2.9 years payback, with average annual production of 26 K Oz Au in phase 1 and 4.2 M Oz Ag in phase 2.
  • Santacruz Silver Mining Ltd. released production results for the Q4 and full year 2020. During the quarter, at Zimapan in Hidalgo 180 K tonnes were processed @ 76 gpt Ag, 0.62% Pb, 2.20% Zn, 0.32% Cu, recovering 67.4% Ag, to produce 297.5 K Oz Ag, 948 tonnes Pb, 2,711 tonnes Zn, 402 tonnes Cu. At Rosario in San Luis Potosí, 21.6 K tonnes were processed @ 71 gpt Ag, 0.18 gpt Au, 0.38% Pb, 1.40% Zn, recovering 87.5% Ag, to produce 43.3 K Oz Ag, 77 Oz Au, 73 tonnes Pb, 244 tonnes Zn. At Veta Grande in Zacatecas, no processing took place during the quarter. For the full year, the company produced 340.9 K Oz Ag, 77 Oz Au, 1,022 tonnes Pb, 2,954 tonnes Zn, 402 tonnes Cu (1 M Oz AgEq).

ON FINANCING

  • Silver Dollar Resources Inc. announced its common shares are now eligible for “settlement through the Depository Trust Company (“DTC”), a subsidiary of the Depository Trust & Clearing Corp. that manages the electronic clearing and settlement of publicly-traded companies in the United States” (La Joya, Durango).
  • Mammoth Resources Corp. was recently granted conditional approval by the TSX Venture Exchange to close its previously oversubscribed $688.5 K gross proceeds private placement financing (Tenoriba, Chihuahua).
  • Plymouth Realty Capital Corp. intends to undertake a non-brokered private financing for gross proceeds of $2 M. Plymouth previously closed a brokered private placement for $7.4 M in proceeds (Peñasco Quemado, Sonora).
  • Prospero Silver Corp. is proposing to consolidate its outstanding common shares on the basis of three to one. “There are currently 5,747,189 Shares issued and outstanding. Following the Consolidation, there will be approximately 1,915,729 Shares issued and outstanding, subject to treatment of fractional post-Consolidation Shares” (Pachuca Southeast, Hidalgo).
  • Sonoro Gold Corp. has granted incentive stock options to certain directors, officers and consultants of the company to purchase an aggregate of 535 K common shares. (Cerro Caliche, Sonora).
  • Solaris Resources Inc. announced that its common shares have been approved for listing on the Toronto Stock Exchange (La Verde, Michoacan).
  • Bacanora Lithium PLC made a share placement representing US$65 M in gross proceeds (Sonora Lithium, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Discovery Metals Corp. announced the expansion of the higher-grade bulk-tonnage domain at is Cordero project in Chihuahua. Results from 13 diamond drill holes were released, highlighting the next core length intervals: 131.6 m @ 48 gpt Ag, 0.09 gpt Au, 0.5% Pb, 1.1% Zn (118 gpt AgEq) including 37.1 m @ 119 gpt Ag, 0.22 gpt Au, 1.0% Pb, 1.2% Zn (223 gpt AgEq); 85.6 m @ 53 gpt Ag, 0.05 gpt Au, 1.4% Pb, 1.7% Zn (175 gpt AgEq) including 39.9 m @ 93 gpt Ag, 0.08 gpt Au, 2.4% Pb, 3.0% Zn (308 gpt AgEq); 126.1 m @ 40 gpt Ag, 0.10 gpt Au, 0.4% Pb, 1.0% Zn (103 gpt AgEq); 57.6 m @ 41 gpt Ag, 0.11 gpt Au, 0.3% Pb, 1.8% Zn (134 gpt Ag). Drilling has extended the “strike extent of the higher-grade bulk tonnage domain by approximately 300 m along strike across an estimated lateral extent of approximately 400 m”. 
  • Silver Tiger Metals Inc. informed on the discovery of a new mineralized zone on the footwall of the Sooy vein at El Tigre, Sonora. Highlighted core length results comprise 22.2 m @ 1.12 gpt Au, 177 gpt Ag, 0.23% Cu, 1.4% Pb, 2.0% Zn (382 gpt AgEq) including 11.75 m @ 2.02 gpt Au, 305 gpt Ag, 0.39% Cu, 2.3% Pb, 3.6% Zn, which include 6.95 m @ 3.34 gpt Au, 345 gpt Ag, 0.33% Cu, 2.0% Pb, 3.4% Zn. “The decision by the technical team to continue drilling 50 meters past the targeted Sooy Vein has been rewarded by the discovery of a wide zone of high grade mineralization totally unlike the quartz vein ore previously mined at El Tigre”.
  • Gold Resource Corp. released good underground drilling results from its Don David mine in Oaxaca. Highlighted core length intervals comprise 10.85 m @ 9.12 gpt Au, 179 gpt Ag, 0.58% Cu, 3.5% Pb, 7.0% Zn; 11.83 m @ 17.45 gpt Au, 99 gpt Ag, 0.78% Cu, 3.7% Pb, 6.3% Zn; 9.97 m @ 4.43 gpt Au, 88 gpt Ag, 0.35% Cu, 0.8% Pb, 3.2% Zn; 5.87 m @ 1.51 gpt Au, 871 gpt Ag, 0.15% Cu, 0.5% Pb, 1.0% Zn; 3.85 m @ 1.66 gpt Au, 1,046 gpt Ag, 0.14% Cu, 0.3% Pb, 0.4% Zn; 7.06 m @ 0.71 gpt Au, 286 gpt Ag; 9.20 m @ 0.47 gpt Au, 283 gpt Ag.
  • Silver Dollar Resources Inc. completed the compilation and reinterpretation of historical exploration data on the La Joya project in Durango. Additional targets have been defined by similarities in skarn mineralization to La Colorada recent discovery in nearby Zacatecas, and a study in fault kinematics, geophysical interpretation and the elaboration of a 3D geological and mineralization model.
  • Impact Silver Corp. purchased two core drill rigs to accelerate exploration on its Zacualpan property in Estado de Mexico. The company has started a 10,000 meters drill program utilizing a used underground rig already in its possession, a new surface rig and a new underground rig. Multiple targets on both extensions of current mining areas are to be tested, as well as new exploration targets on the San Ramon, Guadalupe, Mina Grande, Cuchara, Manto America and Alacran areas.
  • Endeavour Silver Corp. updated mineral reserve and resources estimates for its properties. Mineral reserves stand at 48.6 M Oz Ag, 472 K Oz Au (86.3 M Oz AgEq), measured and indicated resources at 25.9 M Oz Ag, 222.5 K Oz Au (43.7 M Oz AgEq) and inferred resources at 64.4 M Oz Ag, 283.8 K Oz Au, (87.1 M Oz AgEq).
  • Fabled Silver Gold Corp. released results from the second drill hole of the 8,000 meters campaign at its Santa María project in Chihuahua. Highlighted core length intercepts comprise 6.0 m @ 0.54 gpt Au, 324 gpt Ag including 3.30 m @ 0.90 gpt Au, 561 gpt Ag which includes 1.10 m @ 0.74 gpt Au, 822 gpt Ag and 1.10 m @ 1.06 gpt Au, 621 gpt Ag.
  • GoGold Resources Inc. announced results of drilling at La Trini in Los Ricos North property. Highlighted core length intercepts comprise 11.4 m @ 97 gpt Ag, 0.05 gpt Au, including 0.8 m @ 1,214 gpt Ag, 0.25 gpt Au; 8.5 m @ 197 gpt Ag, 0.08 gpt Au, including 2.3 m @ 506 gpt Ag, 0.08 gpt Au; 23.5 m @ 64 gpt Ag, 0.81 gpt Au, including 2.8 m @ 283 gpt Ag, 3.30 gpt Au. To date, the results of 96 drill holes at La Trini have been released.
  • Sailfish Royalty Corp. updated on the Gavilanes project in Durango. The 13,594 hectares low-sulfidation epithermal project is 25 km east from First Majestic’s San Dimas property. Historic indicated resources comprise 953 K tonnes @ 165 gpt Ag, 0.09 gpt Au, 0.06% Cu, 0.42% Pb, 0.41% Zn (200 gpt AgEq) whereas inferred resources include 5.4 M tonnes @ 125 gpt Ag, 0.12 gpt Au, 0.4% Pb, 0.34% Zn (163 gpt AgEq).
  • Xtierra Inc. released results from drilling at the Victor vein on its Bilbao property in Zacatecas. Highlighted true-width intervals in one hole comprise 3.80 m @ 59 gpt Ag, 2.0% Pb, 1.3% Zn, 0.14% Cu; 8.98 m @ 90 gpt Ag, 3.4% Pb, 3.2% Zn, 0.20% Cu, including 2.09 m @ 175 gpt Ag, 6.1% Pb, 0.7% Zn, 0.58% Cu; 4.15 m @ 131 gpt Ag, 6.0% Pb, 8.5% Zn, 0.18% Cu;1.10 m @ 126 gpt Ag, 6.1% Pb, 3.8% Zn, 0.68% Cu. Another hole returned 1.84 m @ 101 gpt Ag, 6.2% Pb, 2.7% Zn, 0.21% Cu; 3.48 m @ 28 gpt Ag, 1.7% Pb, 0.8% Zn, 0.06% Cu.
  • Azucar Minerals Ltd. released results from one more drill hole at the Porvenir zone of the El Cobre project in Veracruz. Highlighted core length intervals comprise 65.0 m @ 0.26 gpt Au, 0.14% Cu, including 10.0 m @ 0.54 gpt Au, 0.29% Cu; a second interval of 25.5 m @ 0.52 gpt Au, 0.30% Cu. “. Drilling planned for the Porvenir Zone has been completed and future drilling on the project will be planned based on a geologic review currently underway and the receipt of outstanding assay results. In the meantime a surface field work program is planned to better define several targets prior to drill testing”.

ON DEALS AND CORPORATE ISSUES

  • Endeavour Silver Corp. has granted an option to purchase a 100% interest in its Guadalupe y Calvo project in Chihuahua to Ridgestone Mining Inc.. Under the agreement Ridgestone has to pay over four years US$1.5 M in cash and US$1.75 M in shares, plus US$0.75 M in exploration expenses for a total commitment of US$4 M. Endeavour will retain a 2% NSR, with an option by which Ridgestone could buy back the 2% NSR for US$2 M prior to commencement of commercial production.
  • Mako Mining Corp. informed a definitive agreement has been executed with GR Silver Mining Ltd. on the sale of its subsidiary Marlin Gold Mining Ltd., which owns the La Trinidad mine facilities in Sinaloa, currently being reclaimed. The deal includes nine mining concessions covering 104,094.5 hectares adjacent to GR Silver’s properties. Mako will receive US$50 K in cash, a 1% NSR and the reversal of US$9.35 M in unpaid concession taxes. The 1% NSR can be bought at any time for US$2 M.
  • Silvercorp Metals Inc. has acquired 100% interest in the La Yesca project in Nayarit. The 4,700 hectares project has previous geological mapping, stream sediment and soil surveys and 7,649 meters of drilling in 25 widely spaced holes. Highlighted trench sample results comprise 25.6 m @ 420 gpt Ag, 14.3 m @ 389 gpt Ag, 47.6 m @ 295 gpt Ag and 32.9 m @ 161 gpt Ag, all with combined Pb+Zn credits of up to 3.7%. Highlighted core length intercepts comprise 3.3 m @ 744 gpt Ag, 0.1% Pb, 1.4% Zn; 10.0 m @ 977 gpt Ag, 0.2% Pb, 0.6% Zn; 6.5 m @ 725 gpt Ag, 0.5% Pb, 1.8% Zn; 5.9 m @ 293 gpt Ag, 0.2% Pb, 1.4% Zn; 2.4 m @ 823 gpt Ag, 0.3% Pb, 4.0% Zn; 3.0 m @ 718 gpt Ag, 0.2% Pb, 3.34% Zn; 17.0 m @ 252 gpt Ag, 0.8% Pb, 2.1% Zn. Silvercorp obtained control of the project by acquiring the holding company with a cash payment of US$9.25 M in cash and a 45% interest in the managing company shares to the vendors. “A “discovery payment” of up to $30 million calculated on the basis of US$0.20 per ounce of silver resources as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”), is payable by New Infini to the Vendors subject to certain permitting considerations”.
  • Bacanora Lithium PLC. announced that its partner Ganfeng Lithium Co. Ltd. signed a joint venture agreement “in connection with its investment in SLL (“JVA”) following the exercise of its option to increase its stake in SLL from 22.5% to 50% (the “Option”). Completion of the JVA remains conditional upon certain approvals and consents from authorities in the People’s Republic of China”. On a second press release Bacanora informed Ganfeng’s intention to increase its holding in Bacanora, subscribing for gross proceeds of US$31 M. On completion of their investment, Ganfeng will have an ownership level of 28.88%. (Sonora Lithium project, Sonora).
  • SilverCrest Metals Inc. disclosed positive results from a feasibility study for the Las Chispas project in Sonora. The study envisages a 1,250 tpd operation with an initial mine life of 8.5 years, with a base case NPV(5%) of $486.3 M, IRR of 52% and a payback period of one year. An average AISC of $7.07 per Oz AgEq for seven years is among the lowest quartile AISC globally.
  • Almaden Minerals Ltd. provided an update on its intentions for advancing the Ixtaca project in Puebla. Late last year the company was informed that the initial environmental impact assessment on the project did not receive approval from the Mexican federal permitting authority, Secretaría de Medio Ambiente y Recursos Naturales (SEMERNAT).” Almaden remains convinced that the Ixtaca project can be a showcase for modern, responsible mineral development in Mexico. The Company intends to work towards submitting a revised MIA which incorporates additional data presently available to the Company as well as data to be gathered in further field studies”.
  • Magna Gold Corp. announced exploration activities have commenced on its Margarita project in Chihuahua. Magna plans to re-log 5,097 meters of HQ drill core from 35 drill holes, re-sample and sample vein and vein extensions and compile sections and long sections based on the previous drilling. “Magna has contracted topographic map work on the property, as well as the acquisition of Aster satellite images, in preparation for field mapping at Margarita. A survey crew will locate the Margarita drillhole collars to confirm existing data. Field work at Margarita is scheduled to commence in Q1, which will be used to plan a drill campaign that will commence by Q3 2021. The drill campaign will include infill, confirmation and exploration drilling and will be targeted in areas between and down dip from existing drilling”. A second, 2,000 meters phase of drilling is planned in Q3 at La Pima, in Sonora. The drilling is to focus on breccias hosted in limestone. At Los Muertos, also in Sonora, soil and rock chip sampling as well as geology mapping and an induced polarization survey are planned to commence on Q4 2021.
  • Orla Mining Ltd. updated the exploration status of its 163,000 hectares in Mexican properties. A 6,000 meters core drilling program is underway within the Camino Rojo deposit in Zacatecas, and a 5,212 RC drilling campaign was completed in the neighboring Las Miserias, San Tiburcio and Guanamero targets. Nine trenches were excavated at the Las Miserias target, for a total of 140 meters. A directional drilling programmed commenced in Q4 2020 on the down plunge extension of the sulfide zone on the Camino Rojo deposit. A 2,500 meters core drilling program on Fresnillo’s property and integration of the geological resource models with Fresnillo’s drill data (In December 2020 Orla completed a layback agreement with Fresnillo PLC that will allow Orla to expand the Camino Rojo oxide pit onto part of the adjacent Fresnillo’s mining concession. A US$4 M budget has been allocated for these exploration campaigns.
  • Plymouth Realty Capital Corp. received conditional acceptance from the TSX Venture Exchange on its qualifying transaction whereby Plymouth will acquire the Peñasco Quemado (Sonora), Pluton (Durango) and La Frazada (Nayarit) projects from Silver One Resources Inc.. Plymouth is to pay Silver One $6 M in cash and shares as follows: 1.25 M in cash and 4.375 M shares on the closing of the transaction, $750 K in cash 18 months onwards and $500 K in cash 24 months after the closing.

ON SOCIAL RESPONSIBILITY

  • Grupo Mexico’s La Caridad power plant  received the certificate “Great Place to Work”.
  • Minera Peñasquito donated medical equipment to the state government in Zacatecas.

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

On the image below:  Quartz vein from a low sulfidation epithermal system in Sinaloa. Picture by Jorge Cirett.

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

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By Jorge Cirett

During the 36th week of the year (August 31st to September 6th, 2020), at least 22 press releases were announced by companies working in Mexico. The dominant news on the country relating to the mining industry during the week, was the cancellation of the Sub Secretary of Mining (created during the last presidential term), headed by Francisco Quiroga, who had gained the trust of the enterprises and organizations of the industry by his relentless and hands-on daily effort to help better the mining industry in Mexico. He will be missed, unlike his predecessor. ON MEXICO ISSUES, the Sub Secretary of Mining was cancelled, its role absorbed within the Economy Secretary; loud complaints from the mining industry organizations followed, to fall on deaf ears. Pending investments in mining for the near future of US$1991 M. The Sonora Mining Fund Committee approved the investment of US$3.5 M on an aqueduct. FIFOMI has US$164 M in current credits to the mining industry. The Mining Fund is gone, for the purposes it was created for. (This is a measure taken by the actual federal government against the opinion of all mining enterprises and organizations. In my personal point of view, it opens the way to the use of the funds in a very centralized manner, same that can be exploited for political gains by those in power. There was just no need for this change). The very Mexican “illegal mine blockade roulette” now struck Equinox’s Los Filos mine in Guerrero. ON EXPLORATION, in Baja, Comet Resources updated on its Santa Teresa property. In Sonora, Redstar Gold updated on its Cumaro project. In Sinaloa, Viszla Resources released drilling results at Panuco. In Veracruz, Azucar Minerals released drilling results from El Cobre.  ON MINING, Santacruz Silver reported second quarter 2020 results. Equinox Gold’s Los Filos mine in Guerrero is affected by an illegal blockade. ON FINANCING, seven companies made announcements regarding the opening or closing of financing rounds: Southern Silver Exploration ($456 K), Barksdale Resources ($6.3 M), GoGold Resources (C$30 M), Silver Dollar Resources ($10.5 M), Inomin Mines ($400 K), Americas Gold and Silver (C$39.4 M), Alien Metals (£1.25 M). Gold79 Mines, Golden Tag Resources and Redstar Gold granted stock options to officers, directors and consultants. ON RESOURCES AND DEVELOPMENT, Silver Bull Resources updated on the legal battle and an illegal blockade at its Sierra Mojada project in Coahuila. ON DEALS AND CORPORATE ISSUES, Odyssey Marine Exploration received funds for the legal battle to obtain the government permit to mine its Exploraciones Oceánicas phosphate project offshore Baja California Sur. Tarachi Gold acquired the Juliana group of properties, increasing the size of its Tarachi property to 3,708 hectares. Inomin Mines executed the agreement on the acquisition of the La Gitana and Peña Blanca properties in Oaxaca. ON SOCIAL RESPONSIBILITY. Peñasquito, First Majestic, Minera San Javier, Alamos Gold and SilverCrest informed on donations, community involvement and safety measures on the areas near their operations.

ON MEXICO ISSUES

  • Francisco Quiroga, in his last day as Sub-Secretary of Mining, called for the AIMMGM (Asociación de Ingenieros Mineros, Metalurgistas y Geólogos de México) to play a leading role in the transformation of the industry and its relationship with the public sector.
  • The AIMMGM installed the newly elected board for the 2020-2022 period.
  • The Secretaría de Economía announced the cancellation of the Mining Sub-Secretary, onward from September 1st, 2020.
  • The cancellation of the Mining Sub-Secretary by the federal government brought loud complaints from companies and organisms within the industry (not that these complaints are to be attended to). The Cámara Minera de México (CAMIMEX), the Asociación de Ingenieros Mineros, Metalurgistas y Geólogos de México (AIMMGM), the Mining Task Force of the Cámara de Comercio del Canadá en México, the Sonora, Chihuahua, Guerrero, Sinaloa and Zacatecas Mining clusters, the Colegio de Ingenieros de Minas, Metalurgistas y Geólogos de México (CIMMGM) and the organization Mujeres en la Minería (WIM Mexico) extended its congratulations to Francisco Quiroga, departing Mining Sub-Secretary and expressed the profound disagreement for the disappearance of the Sub Secretary of Mining.   
  • Camimex (Cámara Minera de México) informed Mexico has a list of projects that add up to $1,991 M dollars in programmed investment. Amongst these are the Campo Morado mine in Guerrero, La Yaqui Grande in Sonora, as well as the Orysivo project in Chihuahua, the Centauro Profundo project in Sonora and the Media Luna project in Guerrero. Mexico had a production peak of 123,364 kg of gold in 2015, same that has declined to 73,451 kg in 2019.
  • The Mining Fund Sonora Committee approved the investment of MX$75 M pesos (US$3.5 M) for the construction of the Macoyahui-Alamos aqueduct. The project includes 24.5 Km of PVC tubing and five pumping stations.
  • INEGI informed the mining activity is resuming after the COVID lockdown. Sulphur, iron,, lead, gold, copper, silver, fluorite are among the commodities that have seen their production significantly increased. In January 2020 the industry generated 381,456 direct jobs and more than 2 M indirect jobs, according to the IMSS.
  • Request for the Mining Sub Secretary to stay in Chihuahua by Omar Bazán, deputy, and the Chihuahua Mining Cluster.
  • The Fideicomiso de Fomento Minero (FIFOMI) has $3,530 M pesos (US$164 M) on current credits to the mining sector.
  • The Mining Fund is gone, for the purposes it was created for. Graciela Márquez, Economy Secretary confirmed the resources no longer are going to be distributed among mining municipalities, but through different agreements with government organisms and federal programs to help mining communities.
  • Graciela Márquez, Economy Secretary, stated the disappearance of the Mining Sub-Secretary is not to affect the mining industry as all relevant structures stay in place (We beg to disagree).

ON EXPLORATION

  • Radius Gold Inc. informed on exploration at its Amalia and Plata Verde projects in Chihuahua. At Amalia, “phase 4 drilling funded by JV partner Pan American Silver remains on stand-by due to COVID-19. Semarnat, the permitting agency in Chihuahua, has returned to work on a limited scale and Pan American has recently provided updated information requested by Semarnat”. At Plata Verde, there is advance in the signing of agreements to expand the property package. “The next phase of field work will consist of geophysical programs to identify feeder systems and expansions of the known mineralization under the thin (>100m) cover volcanics”.
  • Redstar Gold Corp. announced its Cumaro project in Sonora is adjacent to SilverCrest’s Picacho property. “Previous drilling on SilverCrest Metals’ Picacho vein, two kilometres north of the Cumaro property, returned intersections including 13.9 metres at 16.22 grams per tonne (g/t) gold and 33.9 g/t silver in hole PDD07-013, and 4.1 metres at 3.86 g/t gold and 35.0 g/t silver…” in other hole on the Dos Amigos vein. The company believes there is a down-thrown block on the eastern side of the property, where the extensions of the veins exposed on the western side could be present on a much shallower level.
  • Comet Resources Ltd. Informed in a corporate presentation on its Santa Teresa property in Baja California. Santa Teresa is a high-grade mesothermal lode gold deposit (ie.- orogenic gold) with an existing NI 43-101 inferred resource of 64 K Oz Au capped at 20 gpt Au, with a cutoff grade of 4 gpt Au and average grade of 8 gpt Au. Historical drilling has intersected quartz veins grading up to 958 gpt Au over 1 m, and multiple other drill results above 30 gpt Au. The deposit is open along strike and at depth.
  • Vizsla Resources Corp. announced a fourth new discovery at its Panuco project in Sinaloa. The first four drill holes at the Tajitos vein have been completed on the Cinco Señores vein corridor. Highlighted intercepts from the three first drill holes comprise 4.5 m @ 1,200 gpt Ag, 7.29 gpt Au (including 1.15 m @ 2,210 gpt Ag, 16.13 gpt Au); 1.15 m @ 812 gpt Ag, 4.59 gpt Au. ”The Tajitos vein zone is composed of a quartz breccia vein with an early white locally banded quartz supporting andesite lithic clasts, followed by a later white to greyish quartz supporting brecciated clasts of earlier white quartz veins. This zone was then cut by a later white to clear quartz vein with local dark bands or patches of fine-grained sulphides that is cutting a zone of quartz psuedomorphs after bladed calcite and pink rhodochrosite. The better grades are in the earlier breccias associated with dark bands or dark patches of very fine-grained disseminated sulphides. This vein zone is hosted in a package of andesite flows and tuffs”.
  • Azucar Minerals Ltd. released drilling results from its El Cobre project in Veracruz. The holes in the Primo target returned 23.75 m  @ 0.22 gpt Au, 0.08% Cu; 8.50 m @ 0.71 gpt Au, 0.24% Cu; 123.50 m @ 0.14 gpt Au, 0.14% Cu. Azucar is currently preparing its facilities  and implementing the health protocols required to enable a safe return to work.

ON MINING

  • Santacruz Silver Mining Ltd. Reported operating and financial results for the second quarter 2020. At Veta Grande in Zacatecas, 37.1 K tonnes were milled to produce 204.6 K Oz AgEq at cash cost $17.68 per Oz AgEq and an AISC of $19.70 per Oz AgEq. At Rosario in San Luis Potosi, 20.8 K tonnes were milled to produce 141.4 K Oz AgEq at cash cost $14.23 per Oz AgEq and an AISC of $15.59 per Oz AgEq.
  • Equinox Gold Corp. reports that “mining activities at its Los Filos mine in Mexico have been suspended since September 3, 2020 as the result of an illegal road blockade by members of the nearby Carrizalillo community. The individuals allege non-compliance with the community social collaboration agreement signed in 2019. The mine remains staffed with a reduced workforce to maintain appropriate safety, security and environmental systems. Equinox Gold is in active discussions with the Carrizalillo community leaders to resolve the issues”.

ON FINANCING

  • Gold79 Mines Ltd. Approved the granting of 6 M stock options to officers, directors and consultants of the company (Taviche, Oaxaca).
  • Southern Silver Exploration Corp. plans to conduct a non-brokered private placement to raise $456 K (Cerro Las Minitas, Durango).
  • Golden Tag Resources Ltd. Granted 9.9 M incentive stock options to management and directors (San Diego, Durango).
  • Barksdale Resources Corp. increased the size of its non-brokered private placement financing for gross proceeds of up to $6.3 M (San Javier, Sonora).
  • GoGold Resources Inc. entered into an agreement on a bought deal basis with a syndicate of underwriters for the acquisition of shares for gross proceeds of C$30 M (Los Ricos, Jalisco).
  • Silver Dollar Resources Inc. has arranged a non-brokered private placement to raise up to $10.5 M (La Joya, Durango).
  • Redstar Gold Corp. announced the granting of 20.73 M stock options to directors, officers and consultants of the company (Cumaro, Oso Negro and La Lola, Sonora).
  • Inomin Mines Inc. announced a non-brokered private placement to raise up to $400 K in gross profits (La Gitana, Oaxaca).
  • Americas Gold and Silver Corp. closed its previously announced and up-sized bought deal financing for aggregate gross proceeds of C$39.4 M (Cosalá, Sinaloa).
  • Alien Metals Ltd. announced that it has conditionally raised £1.25 M (Los Campos and Los Celsos, Zacatecas).

ON RESOURCES AND DEVELOPMENT

  • Silver Bull Resources Inc. updated on its Sierra Mojada project in Coahuila. Sociedad Cooperativa de Exploración Minera Mineros Norteños, S.C.L. (Mineros Norteños), the group which is illegally blocking the Sierra Mojada project, has filed an appeal in the recently reopened Mexican courts to try and overturn a favorable ruling for Silver Bull on their lawsuit against the Company filed in 2014. The company sees the whole lawsuit as frivolous (looking for payment of an NSR on production that has not taken place), and explains Mineros Norteños has lost already three rulings, and Silver Bull expects a final ruling on the case, which cannot be appealed by Mineros Norteños, to be handed down from the courts within the next 6 months. Mineros Norteños has illegally blocked access to the project since September 2019.

ON DEALS AND CORPORATE ISSUES

  • Odyssey Marine Exploration Inc. had a financing transaction that provides the company with $11.3 M, a portion of which will be used to fund operating expenses of the “Exploraciones Oceánicas” phosphate project offshore Baja California Sur. “The investor group was anchored by Odyssey’s existing NAFTA funding partner, Poplar Grove LLC. Poplar Grove is managed by Drumcliffe LLC, a private investment management firm that oversees high-value litigation funding portfolios of over $14 billion in claims”.   
  • Telson Mining Corp. announced the resignation from its board of directors by Remigio Martínez Muller.
  • Tarachi Gold Corp. entered into an arm’s length option agreement with Exploradora Cobre de Bacanoras S. de R.L. de C.V. to acquire 100% interest in the group of mining concessions known as the Juliana, Juliana No.1, Juliana No.2 and Las Morita mining concessions covering 1,140 hectares in Sonora. “Tarachi’s projects now consist of the San Javier, Pretoria, Chivitas, Jabali, Juliana, Texana and Tarachi concessions for a total of 3,708 ha in the Mulatos District. The deal involves the payment of $40 K on the execution date, $30 K on six months, $30 K on 12 months, $30 K on 18 months, $60 K on 24 months, $60 K on 30 months, $150 K on 36 months, $150 K on 42 months, $150 K on 48 months, $700 K on 54 months and $700 K on 60 months, and the issue of 4 M common shares, 400 K of those on the execution date, 1 M shares on 12 months, 1 M shares on 24 months and 1.5 M shares on 26 months. The transfer of the concessions is subject to a 3% NSR from production, with the company having the right to buy at any time 1/3 of the NSR for $1 M.
  • Inomin Mines Inc. announced the execution of the agreement to acquire the La Gitana and Peña Blanca projects in Oaxaca. Inomin is acquiring 100% interest on both properties for 1 M common shares of Inomin, $25 K cash and the grant of 1.5 % NSR on the Peña Blanca property, of which 0.5% can be bought at any time for $1 M.

ON SOCIAL RESPONSIBILITY

  • Peñasquito continues to apply bio-security protocols. Up to date 27,359 fast test have been applied in the facilities and neighboring communities, resulting in six confirmed cases.
  • First Majestic Silver Corp. invested during 2019 US$3.8 M in local community, health youth programs, infrastructure and access to clean water. Over 25,600 medical consultations were provided in local communities. Planted 105,730 native plant species through reforestation initiatives .
  • Minera San Javier (NewGold) donated personal medical equipment to hospitals in San Luis Potosí, and personal medical equipment and sanitization supplies to the Cerro San Pedro municipality health clinics. The company continues to deliver food pantries to persons in need in Planta del Carmen, La Zapatilla, Monte Caldera, Cuesta de Campa, Calderón, Portezuelo and Cerro San Pedro.
  • Alamos Gold donated medical equipment and a mobile unit to the Sahuaripa DIF (Desarrollo Integral de la Familia) in Sonora.
  • SilverCrest’s Las Chispas project has accumulated 600 days without accidents in Sonora.

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

On the image below: The whitish ledge from left to center is a silicified paleo water table in the Mexican Altiplano. Picture by Jorge Cirett.

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

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193By Jorge Cirett

During the 30th week of the year (July 20th to July 26th, 2020), at least 37 press releases were announced by companies working in Mexico. To note, six of those were exploration updates and strikingly twelve more were related to financing. These are either opening or closing rounds, and it is difficult to assign the total amount to any given week, but the announcements on this period add up to $23.4 M and C$168.5 M (dominated by Argonaut’s C$126.5 M and Discovery’s C$35 M). Clearly there is a spike in funds flowing to mining companies, probably supported by stronger metal prices on fears of an underperforming economy and heightened global tensions. ON MEXICO ISSUES, exploration is picking up in the country after the end of the Coronavirus lockdown, with several companies performing drilling programs. Alacero warned on excessive steel importation. ON EXPLORATION, in Sonora, Carlyle Commodities commenced its field program on Cecilia. In Chihuahua, Radius updated on the geology and geochemistry of its Plata Verde project, an interesting play. In Sinaloa, Kootenay Silver released good drilling results on its Copalito project. In Durango, Mithril Resources is about to drill Coplaquín. In Guanajuato, VanGold Mining is to start an underground drilling campaign at El Pinguico. In Zacatecas, Defiance Silver resumed its field program at San Acacio. ON MINING, Premier Gold and Fresnillo PLC presented Q2 2020 reports. Premier Gold is reducing its daily output and workforce at Mercedes. Peñasquito informed on its dealing with the Coronavirus pandemic. ON FINANCING, twelve companies made announcements regarding the opening or closing of financing rounds, or financing related news: Canasil Resources ($1.25 M), Orex Minerals ($1.1 M), VanGold Mining ($2.45 M), Golden Minerals ($7.5 M), VanGold Mining ($3.8 M), Sonoro Metals (C$5 M), Monarca Minerals (C$2 M), Discovery Metals (C$35 M), Advance Gold ($725 K), Argonaut Gold (C$126.5 M), Almaden Minerals ($2 M), Peal Mexico acquired $3.85 M of Magna Gold shares. ON RESOURCES AND DEVELOPMENT, Discovery Metals released drill results from its Cordero project. Golden Tag Resources informed on strategic growth opportunities with its San Diego project in Durango. GoGold Resources released assay results from Los Ricos South project in Jalisco. GR Silver reported results from 17 historic drill holes from its Plomosas project in Sinaloa. ON DEALS AND CORPORATE ISSUES, Prime Mining completed the acquisition of the Los Reyes project in Sinaloa. Santacruz Silver sold its Zacatecas properties to Zacatecas Silver Corp.. Evrim Resources sold its La Lola and Cumaro projects to a Mexican private company for an NSR. Redstar Gold acquired all shares of Heliodor Metals, which holds the Oso Negro, La Lola and Cumaro projects in Sonora. ON SOCIAL RESPONSIBILITY. Alamos Gold Peñasquito, Grupo Mexico and Fresnillo PLC donated medical equipment to communities near its operations. A virtual immersion program for kids was held in San Luis Potosí.

ON MEXICO ISSUES

  • Exploration is picking up speed in Mexico after the end of the Coronavirus induced lockdown. Drilling programs are beginning or already underway at Cordero, Chihuahua (Discovery Metals), Pánuco in Sinaloa (Vizsla Resources), Álamos Silver in Sonora (Minaurum), Los Reyes in Sinaloa (Prime Mining), Las Minas in Veracruz (Mexican Gold), Cerro Caliche in Sonora (Sonoro Metals), Copalquín in Durango (Mithril Resources), Rodeo in Durango (Golden Minerals) and Nora in Durango (Canasil Resources).
  • Gold and silver prices are closing the week with highs not seen in several years. Gold was above $1,900 hundred an ounce by late Friday, while silver stood above $22.70 an ounce. The Coronavirus crisis, with the foreseen economic stimulus packages by several countries and the souring relations between China and the United States are seen as the reason for the continued upward trend.
  • Alacero (Asociación Latinoamericana de Acero) warned against the excessive importation of steel, in a moment when sales are just recovering.

ON EXPLORATION

  • Defiance Silver Corp. announced the resumption of its field program that includes core re-logging, surface and underground mapping, geochemistry and surface diamond drilling at its San Acacio project in Zacatecas.
  • VanGold Mining Corp. intends to initiate an underground drilling campaign to target extensions of high-grade mineralization at its Pinguico project in Guanajuato. The company also is to clear the El Pinguico shaft and sample the bottom of the backfill, with the aim to ship it to a nearby mill for processing.
  • Kootenay Silver Inc. released assay results from three more holes at its Copalito project in Sinaloa. Core length highlighted intervals comprise 56.0 m @ 58 gpt Ag (including 22 m @ 106 gpt Ag, which include 5.0 m @ 250 gpt Ag, 0.247 gpt Au); 10.3 m @ 80 gpt Ag, 0.90 gpt Au; 7.1 m @ 30 gpt Ag, 0.31 gpt Au; 13.1 m @ 347 gpt Ag, 0.22 gpt Au (including 3.2 m @ 1,297 gpt Ag, 0.28 gpt Au, which includes 1.0 m @ 2,830 gpt Ag, 0.14 gpt Au). To date 1,600 m of the 3,000 m program have been completed.
  • Radius Gold Inc. released results of recent detailed rock chip sampling and geological mapping at its Plata Verde project in Chihuahua. Multiple sub-horizontal breccia zones cemented by barite-calcite-silver chlorides, up to 75 m in diameter have been sampled in different levels, bounded by stockwork and fracture fill of massive to crustiform banded barite-calcite with silver chlorides, sulphosalts and native silver, and disseminated mineralization of sulphosalts within the volcanic host rock. The mineralization is exposed on the sides of a small creek, and covered by felsic volcanic rocks in three directions. The average silver value of 255 samples is 156 gpt Ag, while 74 samples on the breccias average 258 gpt Ag.
  • Mithril Resources Ltd. presented its quarterly activities report, in which the acquisition of Sun Minerals Pty Ltd. was completed, $5.92 M were raised and the drilling equipment moved to site at the Copalquín project in Durango. The next move is the completion of a 5,000 m diamond drilling campaign at Copalquín.
  • Carlyle Commodities Corp. mobilized crews for exploration of its Cecilia project in Sonora. “The Phase 1 exploration program has been designed to refine targeting at Cerro Magallanes which is a large rhyolite flow dome complex, host of several historic workings and multiple high-grade gold mineral occurrences”. Programmed work includes property scale mapping, a detailed structural mapping, processing and interpretation of Aster images, surface sampling and a 10 line-km induced polarization survey. Road rehabilitation and drill pad building to support a drill program on the phase 2 is also contemplated.

ON MINING

  • Premier Gold Ltd. reported production results for the second quarter of 2020. Its Mercedes mine operations in Sonora were halted at the end of March due to the Coronavirus pandemic, and a phased re-start commenced in June. An optimization plan was developed, including the consolidation of five mine portals to one, reducing the mining rate form to 2,000 to 1,200 tonnes per day and operation of the processing plant on a campaign basis, reduction of 40% of the employee base and 75% of the mining related contractors.
  • Fresnillo PLC presented its second quarter 2020 production report. During the period the company produced 13.6 M Oz Ag, 184.4 K Oz Au, 16,180 tonnes Pb, 26,726 tonnes Zn. On exploration, 135,000 m were drilled at the mines, as part of a 440,000 m program to convert resources into reserves. Additionally 39,000 m of exploration drilling was carried out as part of the 228,000 m program at projects. Interesting results were obtained at Fresnillo and Guanajuato, while negotiations continue with communities in other projects to obtain access for drilling. Fresnillo 2Q 2020 Production1
  • Minera Peñasquito informed 15,000 COVID tests have been applied since the re-commencement of activities on June 1, resulting seven positive cases during the past week and the protocol was followed to identify all persons they had contact with. The use of face masks has been agreed with the union, on all public spaces, with the exception of the dining room.

ON FINANCING

  • Peal Mexico S.A. de C.V. announced the acquisition of 11 M shares of Magna Gold Corp. under the terms of a settlement for an aggregate deemed consideration of $3.85 M in an agreement to settle an existing arbitration proceeding between the parties in relation to Magna’s San Francisco mine in Sonora. Peal now owns 16.9% of Magna’s issued and outstanding shares.
  • Canasil Resources Inc. announced a non-brokered private placement aiming to raise up to $1 M, same placement that was oversubscribed for total gross proceeds of $1.25 M (Nora, Durango).
  • Orex Minerals Inc. closed the final tranche of its non-brokered private placement for aggregate gross proceeds of $1.11 M, bringing the total aggregate proceeds to $2.1 M. (Sandra, Durango).
  • VanGold Mining Corp. has arranged a non-brokered private placement financing to raise up to $2.45 M (El Pinguico, Guanajuato).
  • Golden Minerals Co. is increasing its previously announced offering to raise up to $7.5 M in gross proceeds (Rodeo, Durango).
  • VanGold Mining Corp. expanded due to increased demand the size of its non-brokered private placement financing, for gross proceeds of $3.8 M (El Pinguico, Guanajuato).
  • Sonoro Metals Corp. is to undertake a non-brokered private placement to raise up to C$5 M in gross proceeds (Cerro Caliche, Sonora).
  • Monarca Minerals Inc. announced a non-brokered private placement to raise up to C$2 M (San Jose, Chihuahua).
  • Discovery Metals Corp. arranged a non-brokered institutional private placement to raise C$35 M, “ Eric Sprott has agreed to invest C$15,000,000 in the Private Placement,” (Cordero, Chihuahua).
  • Advance Gold Corp. announced it proposes to increase to $725 K its previously announced non-brokered private placement (Tabasqueña, Zacatecas).
  • Argonaut Gold Inc. closed its previously announced bought deal public offering for aggregate gross proceeds of C$126.5 M, thorough a syndicate of underwriters led by BMO Capital Markets (San Agustín, Durango).
  • Almaden Minerals Ltd. announced a proposed non-brokered private placement financing intended to raise up to $2 M (Ixtaca, Puebla).

ON RESOURCES AND DEVELOPMENT

  • Discovery Metals Corp. released results from eight holes at its Cordero project in Chihuahua. Highlighted core length intercepts comprise 5.3 m @ 225 gpt Ag 0.7 gpt Au, 5.1% Pb, 5.5% Zn (including 1.4 m @ 700 gpt Ag, 0.74 gpt Au, 16.1% Pb, 14.0% Zn); 4.3 m @ 365 gpt Ag, 0.55 gpt Au, 2.1% Pb, 4.0% Zn (including 1.5 m @ 489 gpt Ag, 0.82 gpt Au, 2.9% Pb, 11.1% Zn); 120.4 m @ 30 gpt Ag, 0.11 gpt Au, 0.4% Pb, 1.5% Zn; 134.6 m @ 23 gpt Ag, 0.05 gpt Au, 0.5% Pb, 1.1% Zn; 44.8 m @ 35 gpt Ag, 0.10 gpt Au, 0.7% Pb, 1.7% Zn; 0.8 m @ 1,992 gpt Ag, 0.79 gpt Au, 16.1% Pb, 14.2% Zn.
  • Golden Tag Resources Ltd. informed on strategic growth opportunities with its San Diego project in Durango. The project with 31.6 M Oz in indicated resources is fully permitted for drilling four key high priority target zones: 1849, Fernandez, Trovador and Arroyo. Drill intercepts in the Fernandez zone include 212 m @ 54 gpt Ag, 0.5% Pb, 1.3% Zn; 238 m q 64 gpt Ag, 0.8% Pb, 1.6% Zn; 257 m @ 66 gpt Ag, 0.7% Pb, 1.7% Zn; 186 m @ 53 gpt Ag, 0.5% Pb, 1.2% Zn. Mergers, strategic, corporate and project acquisitions are being evaluated, with a focus on silver.
  • GoGold Resources Inc. released the assay results from six diamond drill holes at the Los Ricos South project. Two holes were drilled at Rascadero, two at San Juan and two more at Las Lamas. Highlighted core length intersections comprise: 0 m @ 0.25 gpt Au, 59 gpt Ag; 16.7 m @ 1.32 gpt Au, 268 gpt Au (including 5.4 m @ 3.33 gpt Au, 673 gpt Ag); 21.5 m @ 0.21 gpt Au, 26 gpt Ag; 7.7 m @ 0.45 gpt Au, 65 gpt Ag; 8.9 m @ 0.8 gpt Au, 31 gpt Ag.
  • GR Silver Mining Ltd. reported high-grade results from 17 historical drill holes from the San Juan area of its Plomosas property in Sinaloa. These results define a mineralized strike length of up to 1,000 m. Some of the highlighted true width intercepts comprise: 3.8 m @ 563 gpt Ag, 0.3 gpt Au, 1.6% Pb, 2.7% Zn; 2.5 m @ 846 gpt Ag, 0.8 gpt Au, 2.7% Pb, 6.0% Zn (including 0.9 m @ 2,300 gpt Ag, 2.1 gpt Au, 7.6 % Pb, 16.3% Zn); 3.3 m @ 335 gpt Ag, 0.1 gpt Au, 0.1% Pb, 0.2% Zn; 5.6 m @ 363 gpt Ag, 0.1 gpt Au, 0.8% Pb, 1.9% Zn; 10.7 m @ 226 gpt Ag, 0.3% Pb, 0.3% Zn; 2.8 m @ 141 gpt Ag, 0.3% Pb, 0.7% Zn.

ON DEALS AND CORPORATE ISSUES

  • Prime Mining Corp. completed the acquisition of the Los Reyes project (formerly Guadalupe de Los Reyes) in Sinaloa. The company made a US$1.5 M payment to Vista Gold Inc., after which Vista no longer retains two separate 2% net smelter royalties on production from open-pit or underground mining, or a back-in right to assume a 49% non-carried interest in any underground mining. “Prime is required to pay Vista an additional US$2,100,000 through two payments of: (i) US$1,100,000 no later than six months from the Acquisition Date; and (ii) US$1,000,000 no later than twelve months from the Acquisition Date. If the Company fails to make the two payments, Vista’s net smelter royalties and back-in right will be reinstated”.
  • Santacruz Silver Mining Ltd. entered into an agreement with Zacatecas Silver Corp. for the sale of a 100% interest in the Zacatecas properties for consideration of US$1.5 M and the issuance of 5 M shares of Zacatecas Silver. The Zacatecas properties comprise 149 mining concessions totaling approximately 7,826 ha in the Fresnillo Silver Belt, and include the Panuco deposit, which has an inferred resource of 3.95 M tonnes @ 153 gpt Ag, or 19.5 M Oz Ag, remaining open along strike.
  • Evrim Resources Corp. entered into an agreement with a private Mexican company to sell two non-core exploration properties in exchange of NSR royalties. La Lola is a 6,301 ha land package that covers the La Barra fluorite vein and El Cumaro is a 620 ha claim covering a low sulfidation epithermal field. Evrim will transfer 100% interest in the La Lola and Cumaro properties in exchange for 2% and 1% NSR respectively, and a 0.5 % NSR right on 7,053 ha of the Picachos claims, should the claims be acquired by the Mexican private company. Half of the La Lola NSR can be bought for US$1.75 M and half of the El Cumaro NSR by US$1.0 M.
  • Redstar Gold Corp. entered into a binding agreement to acquire 100% of the shares of Heliodor Metals Ltd., in which Redstar has agreed to issue 86.5 M shares for 100% of the outstanding Heliodor shares. Heliodor has interest in: the Oso Negro 1,500 ha project, which has three main veins and no drilling; The La Lola 5,400 ha land package which contains the 5 km long La Barra epithermal vein (see previous entry under Evrim); Cumaro “is the downthrown block of a large low sulphidation vein field”. Redstar has agreed to conduct a C$6.0 M private placement

ON SOCIAL RESPONSIBILITY

  • Alamos Gold donated medical equipment to the Sahuaripa municipality in Sonora.
  • Peñasquito donated medical equipment to several authority bodies in Zacatecas.
  • Grupo Mexico donated protection equipment to general hospitals in Cuautla and Axochiapan in Morelos.
  • The Instituto de Metalurgia de San Luis Potosí carried out a virtual immersion program for kids.
  • Fresnillo PLC continues to provide cleaning and medical supplies in Guadalupe y Calvo (Chihuahua), Caborca (Sonora) and Fresnillo (Zacatecas).

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

On the image below: Silicified rocks signaling the paleo water table of a low sulfidation epithermal system in Queretaro. Picture by Jorge Cirett.

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

/ Gambusino Prospector / Leave a comment

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By Jorge Cirett

During the 12th week of the year (March 16th to March 22nd, 2020), at least 30 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, Javier Corral, Chihuahua’s governor proposed the Major’s National Association they take part on the current constitutional controversy about the use of the Mining Fund. Mining companies around Mexico and the Camimex prepare for the Coronavirus by cancelling meetings, fairs and gatherings, and promote precautionary measures among its personnel, contractors and communities The AIMMGM convention in Chihuahua, the AMSAC convention in Cananea, and the Discoveries Conference in Guadalajara were to be held at the end of April, but have been re-scheduled due to the Coronavirus effects to later dates on July, August and September. ON EXPLORATION, in Baja California, One World Lithium has obtained the drilling, environmental and occupancy permits to commence drilling on the southern part of the project. In Sonora, Colibri announced the completion of phase 1 drilling at Evelyn. In Chihuahua Century Metals and Reyna Silver are to continue the exploration of the Guigui project near Santa Eulalia.  ON MINING, Starcore filed the results of the last quarter. Mexus Gold continues leaching in Sonora. Avino Silver, Torex gold, McEwen Mining, Impact Silver, Great Panther, Excellon, Argonaut Gold, GoGold Resources, Endeavour Silver, Equinox Gold and Fortuna Silver informed on the measures taken to protect their business, people and communities from the effects of the Coronavirus epidemic. ON FINANCING, Silver Spruce entered into debt settlement agreements for $350 K. First Majestic intends to repurchase up to 10 M shares. SilverCrest Metals received notice from National Bank Financial to terminate their agreement to purchase up to $9.1 M shares. Almaden Minerals amended its private placement to reflect current market conditions. ON RESOURCES AND DEVELOPMENT, Prime Mining informed on recent work at its Guadalupe de Los Reyes project in Sinaloa, and how it might impact on the next resource estimation.  ON DEALS AND CORPORATE ISSUES, Century Metals provided an update on the acquisition of Reyna Silver (and its Guigui project in Chihuahua). Riverside Resources informed on its capitalization, business and current BHP strategic funding. Excellon Resources continues on the acquisition path of Otis Gold. Hecla Mining informed on current hedges to deflect the turmoil on the metals market.  ON SOCIAL RESPONSIBILITY. Minera Media Luna informed on a community campaign to prevent the spread of COVID-19 on neighboring villages to its operations.

ON MEXICO ISSUES

  • Javier Corral, Chihuahua’s governor, proposed on the Executive Committee of the Major’s National Association (Asociación Nacional de Alcaldes) that they take part on the constitutional controversy promoted by the Chihuahua government to rescue the Mining Fund from the Federal government.
  • Mining Companies across Mexico prepare for the Coronavirus, Grupo Mexico, Agnico Eagle, Alamos Gold, Fresnillo PLC and Minera El Boleo are among the companies that have installed policies aimed to reduce the chances of infection among its employees, workers and contractors, including the cancellation of fairs and meetings, as well as work from home programs and access control programs at its installations.
  • The AIMMGM convention in Chihuahua to be held on 21-24 April has been changed to 20-24 July, aiming to reduce the Coronavirus spread on the population. On the same grounds the AMSAC (Asociación de Mineros de Sonora) that was to be held on 29 April-1 has been postponed to 3-4 September.
  • The Discoveries Mining Conference to be held in Guadalajara in late April has been postponed, on the same venue, to 10-12 August 2010.
  • CAMIMEX (Cámara Minera de México) informed it is reducing all non-essential activities and avoiding in-person meetings, although maintaining the offices open to facilitate operations. The organism makes a strong plea to companies and the general population to follow all the preventive measures possible.

ON EXPLORATION

  • Colibri Resource Corp. announced the completion of the phase 1 drilling program at its Evelyn project in Sonora. Five holes were collared in the program that measured 815.6 m in total.
  • Century Metals Inc. and Reyna Silver Corp. are engaged on a merger that intends to advance the 4,554 ha Guigui project in the Santa Eulalia district in Chihuahua. Studies on the project for the last 25 years include detailed geologic mapping and sampling, gravimetrics, ground magnetics, CSAMT (Controlled Source Audio Magneto-Tellurics), NSAMT (Natural Source Audio Magneto-Tellurics), Airborne ZTEM/magnetics, satellite hyperspectral and definition of drilling targets. The planned budget for 10,000 m for compiling and re-processing all prior work and 10,000 m of diamond drilling is $2.44 M.
  • One World Lithium Inc. announced that drilling, environmental, and occupancy permits have been approved to drill two key locations at the south end of the Salar del Diablo Property in Baja California. The proposed exploration holes are located 50 km south of the previous drill holes in the north portion of the property. Mike Rosko of Montgomery Associates has recommended these locations, as “there is evidence of historic and currently active hydrothermal activity in the south and that hydrothermal activity can be a source of lithium such as in the Lithium Triangle in Chile and Argentina”.

ON MINING

  • Starcore International Mines Ltd. filed the results for the Q3 ended on 31 January, 2020. At the company’s San Martin mine in Queretaro, 58.3 K tonnes were milled @ 1.84 gpt Au, 30.1 gpt Ag, recovering 90.1% Au, 50.9% Ag, to produce 3.1 K Oz Au, 29.6 K Oz Ag during the quarter; on the year 301.9 K tonnes were milled @ 1.63 gpt Au, 39.6 gpt Ag, recovering 86.2% Au, 58.4% Ag, to produce 13.7 K Oz Au, 224.5 K Oz Ag (16.4 K Oz AuEq), at cash cost $1,061 per Oz AuEq.
  • Mexus Gold US. continues gold production at its Santa Elena mine in Sonora (Not to mistake for First Majestic’s Santa Elena mine, also in Sonora).
  • Avino Silver & Gold Mines Ltd. reported that there is not been impact on day to day operations at the Avino mine in Durango. The company restricted entrance to external visitors and no-one at the mine-site has tested positive for the COVID-19. Two medical doctors are monitoring and educating the labour force and employees daily.
  • Torex Gold Resources Inc. announced that to date the company had no known or suspected cases of COVID-19 infection at the El Limón – Guajes operations in Guerrero. “At the operation, we have stopped international travelers from coming to site. Social distancing efforts at site are being implemented, which includes isolating delivery drivers. Aggressive cleaning of communal areas has also been ramped up. Education initiatives on infection prevention have been extended to the surrounding communities”.
  • McEwen Mining Inc. reported fourth quarter and full year 2019 results, including figures from its Mexican operations. Production from residual leaching at El Gallo, in Sinaloa, was 2,490 Oz Au Eq for the quarter and 16,333 Oz Au for the year.
  • Impact Silver Corp. informed operations continue as the Coronavirus situation is monitored daily. “In conjunction with local authorities we are actively disseminating information on COVID-19 precautionary measures to our employees and their families. We will continue to monitor their health and for signs of early symptoms of the virus on a regular basis to ensure safety of our staff” (Zacualpan, Estado de Mexico).
  • Great Panther Mining Ltd. announced that it has been closely monitoring the latest developments of the novel Coronavirus COVID-19. “All operations and offices have implemented travel restrictions, supervision, monitoring and response plans to reduce the risk of COVID-19 exposure and outbreak” (Topia, Durango).
  • Excellon Resources Inc. informed the company is in regular contact with local health authorities at its Platosa (Durango) and Miguel Auza (Zacatecas) operations, and continue to monitor global trends on the Coronavirus pandemia. Among other measures “we have restricted site access to essential personnel and essential suppliers. We are conducting health screening at the gate and have provided our security and health personnel with additional protective measures. We have increased the frequency of workplace cleaning and disinfection, including transport vehicles, and have also increased the number of hand sanitizer stations across the work sites. We have implemented social distancing by doubling the number of buses transporting employees to site, significantly modifying food provision services and increasing office space for administration staff, as well as preparing to adjust our existing work-from-home policies as conditions dictate”.
  • Argonaut Gold. Has implemented protocols to minimize the risks of COVID-19 virus, both to employees and business. “At each site, Argonaut is following government health protocols, has implemented additional protocols and is closely monitoring the situation with local health authorities” (La Colorada, Sonora).
  • GoGold Resources Inc. informed that “The constantly changing COVID-19 situation is unprecedented and for many is a time filled with uncertainty. We’d like to ensure our shareholders that operations at Parral and Los Ricos continue as normal as we monitor the situation” (Parral, Chihuahua; Los Ricos, Jalisco).
  • Endeavour Silver Corp. has implemented plans to minimize the risks of the COVID-19 virus both to the employees and to the business. “At each site, Endeavour is following government health protocols and is closely monitoring the situation with local health authorities. The Company has posted health advisories to educate employees about the COVID-19 symptoms, best practices to avoid catching the virus, and procedures to follow if symptoms are experienced” (El Compas, Zacatecas).
  • Fortuna Silver Mines Ltd. has been monitoring the effects of the spread of the Coronavirus, particularly in the jurisdictions that host its mining operations. The company “has placed its Health Safety Security and Environmental Committee in permanent session and is continually assessing the related health and safety risks to the Company’s personnel and contractors at its operations and offices. Preventative measures implemented at our offices and mines include: restrictions on travel, enhanced communication on prevention of contagion and viral effects, increased hygiene initiatives, monitoring personnel and visitors at our sites for symptoms of COVID-19, identification of personnel in high risk categories, reducing mine site personnel to a minimum level essential for continued operations and limiting visitors to those whose visits are considered critical” (San José, Oaxaca).
  • Equinox Gold Corp. “is closely monitoring the COVID-19 pandemic and has taken precautionary measures at its mine sites and offices to help protect the safety of the Company’s workforce and local communities” (Los Filos, Guerrero).

ON FINANCING

  • Silver Spruce Resources Inc. has entered into debt settlements with several creditors and one officer and director to settle $350 K. Under the terms of the debt settlement agreements 7 M shares were issued (Pino de Plata, Chihuahua).
  • First Majestic Silver Corp. board has approved the extension of its share repurchase program over the next year, period on which the company aims to re-purchase up to 10 M shares (San Dimas, Durango; Santa Elena, Sonora).
  • SilverCrest Metals Inc. received notice from National Bank Financial Inc. purporting to terminate its obligations pursuant to an agreement whereby NBF had asked for and agreed to purchase on a “bought deal” basis 9.1 M common shares at price of $8.25 per common share, based on the “disaster out” clause of the agreement. “SilverCrest intends to pursue its legal remedies against NBF for breach of NBF’s obligations under the terms of the Agreement” (Las Chispas, Sonora).
  • Almaden Minerals Ltd. amended its private placement in order to reflect current market conditions. The purchase price for units has been reduced from $0.41 to $0.37 and the exercise price for warrants from $0.65 to $0.50, while the offering size has been increased from 4.9 M to 5.4 M units (Ixtaca, Puebla).

ON RESOURCES AND DEVELOPMENT

  • Prime Mining Corp. informed recent work at its Guadalupe de Los Reyes project in Sinaloa hints to the potential of linking resources. Recent new trenches and road cuts sampling indicate mineralization linkage between the Zapote North and Zapote South orebodies. “Independent engineers are currently assessing and calculating a new resource model, which is now expected to be updated by the end of Q1 2020”. The historic resource is 530 K Oz Au, 10 M Oz Ag, established for Vista Gold in 2013.

ON DEALS AND CORPORATE ISSUES

  • Century Metals Inc. provided an update on the acquisition of all the shares of Reyna Silver Corp. (which owns the Guigui project in Chihuahua). Century is to consolidate to its shares to 5.35 M, both companies are to undertake private placements and Century will issue shares to Reyna Silver’s shareholders and warrants to the holders of warrants, and Century will issue shares to Mag Silver Corp., which is to hold 19.9% of the consolidated shares. Century and Reyna are raising up to $6.8 M in conjunction with the acquisition through concurrent financings. To date, Reyna has raised $5.06 M and Century $1.49 M. The Acquisition is a reverse takeover, and the definitive agreement is expected to be settled before the end of March 2020.
  • Riverside Resources Inc. provided an update on its operations. Currently the company has more than C$2 M in cash, no debt, 63 M shares outstanding and posted to receive $1 M from BHP in May, as part of a generative copper exploration strategic funding agreement. The company also holds marketable securities worth over C$1 M and has retained NSR’s on previously partnered projects. By the end of the month Riverside will have a vote to spin-out the Peñoles project in Durango.
  • Excellon Resources Inc. and Otis Gold Corp., announced that they have filed a joint circular in connection with the acquisition by Excellon of all the shares of Otis, pursuant to a plan of arrangement under the Business Corporations Act of British Columbia (Platosa, Durango).
  • Hecla Mining Co. provided a summary of the activities undertaken to protect its business, employees and local communities from COVID-19. Among the actions taken, contracts have been secured for $16 per Oz Ag for the second quarter, and $1,450 and $1,650 per Oz Au for the second and third quarter respectively. The company has implemented and followed recommended health and hygiene protocols, restricted mine site staff to essential personnel and contractors, stockpiled critical mining supplies (up to six months’ worth in some cases) to protect against possible future supply disruptions (San Sebastian, Durango).

ON SOCIAL RESPONSIBILITY

  • Minera Media Luna has a community campaign to prevent the spread of the COVID-19 virus in the region of the Limon-Guajes mine in Guerrero. The campaign includes an informative preventive health circle inward and outward of the mining complex, into the communities of Acalmantlila, Nuevo Balsas, Real de Limón, La Fundición and Atzcala, among others.

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

On the image below: potassic feldspar alteration in a meta granitoid in Oaxaca, picture by Jorge Cirett.

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