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

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By Jorge Cirett                                             

During the 20th week of the year (May 13th to May 19th,2024), companies working in Mexico posted at least 27 press releases. One company released drilling results in its property, another “the range and grade of the exploration target” and one more a novel geological interpretation for its project. Nine companies released production results for Q1 2024. Seven companies announced the opening/closing of financing rounds for C$19.5 M, one more a prospectus to raise up to US$250 M, and another one the extension of warrants. Two companies informed on a deal to process tailings. ON MEXICO ISSUES, the Mexican mining industry is paralyzed by the lack of a rulebook to enforce the new mining law. ON EXPLORATION, In Sonora, Tocvan Ventures released drilling results from Pilar. In Chihuahua. Mammoth Resources informed on the “range of the quantity and grade of the exploration target” at Tenoriba. In Zacatecas, Zacatecas Silver is using a new geological study for targeting at El Cristo. ON MINING, Sierra Metals, Prime Mining, Gold Royalty, Golden Minerals, SilverCrest Metals, Discovery Silver, Americas Gold and Silver, US Antimony, and Argonaut Gold presented financial/operational results for Q1 2024. ON FINANCING, Impact Silver increased its non-brokered private placement to C$8.2 M, Starcore International Mines arranged a non-brokered private placement for C$500 K. Mag Silver filed a prospectus that will allow the company to offer up to $250 M in shares, Silver Spruce closed a first tranche of its financing for C$300 K, Vortex Metals upward corrected the amount raised on its last financing to C$1.77 M. Mag Silver announced its intention to repurchase up to 10% of its stock. Orex Minerals raised C$337 K on the first tranche of its non-brokered private placement. Oroco Resources is to raise up to C$6 M. Aztec Minerals is to extend the expiry date of some warrants. Silver Viper closed the last tranche of its financing for C$338 K. ON RESOURCES AND DEVELOPMENT, no relevant news. ON DEALS AND CORPORATE ISSUES, Starcore International Mines teamed up with Kappes, Cassiday and Associates on the reprocessing of tailings at El Oro. ON SOCIAL RESPONSIBILITY, Endeavour Silver highlighted progress on its three-year sustainability strategy.

ON MEXICO ISSUES

  • The mining industry in Mexico is paralyzed by the lack of a rulebook to enforce the Mining Law approved last year. The rulebook (reglamento) was supposed to be set in force six months ago, and there is still no date for its publication. Adding to the lack of rules for the industry is the proposal to forbid open pit mining, which would directly affect 60% of mining production.

ON EXPLORATION

  • Tocvan Ventures Corp. announced drill results from its Pilar project in Sonora. Highlighted hole length reverse circulation intervals on one drill hole comprise 76.25 m @ 0.75 gpt Au, 1 gpt Ag (including 56.43 m @ 1.00 gpt Au, 1 gpt Ag, which includes 9.15 m @ 5.25 gpt Au, 3 gpt Ag, which includes 1.52 m @ 26.79 gpt Au, 5 gpt Ag). The results are from a vertical hole testing the down-dip projection of surface mineralization, intersecting several zones of low-grade Au and Ag and one high-grade zone.
  • Zacatecas Silver Corp. completed additional field work at its Zacatecas property, including a detailed petrographic review of the previous diamond drill core at El Cristo. The El Cristo vein system is the NW strike extension of the Veta Grande vein system, with a strike length of over 3 km on the company’s ground, comprising multiple veins within a dilation jog that is up to 650 m wide. The company’s petrographic study confirmed most holes intercepted oxidized vein material, opening exploration for un-leached veins at depth. Drill pad permits to test below the 70 to 110 m depth expected oxidization limits are being sought.
  • Mammoth Resources Corp. informed its geologists identified a target for further exploration. The study proposes the drilling of three areas, Carneritos, Masuparia and Moreno, with potential (“the range of the quantity and grade of the Exploration Target”, not a resource estimate) for over 1.7 M Oz AuEq, including 53.3 M tonnes grading 0.59 gpt AuEq of oxide-mixed and 42.8 M tonnes grading 0.61 gpt AuEq.

ON MINING

  • Sierra Metals Inc. reported first quarter 2024 consolidated financial results. Revenue was 63.14 M for the period, ending with $11.22 M in cash and cash equivalents. Cash costs at the Bolivar mine in Chihuahua was $2.44 per Lb CuEq and an AISC of $3.12 per Lb CuEq. At Bolívar the company has 5.6 M tonnes of reserves, good for three years or mining, and 18.4 M tonnes of resources that can last for 10 years. Production guidance for 2024 is 23.9 to 27.6 M Lb Cu, 650 to 750 K Oz Ag, 8,000 to 9,000 Oz Au.
  • Prime Mining Corp. reported operating and financial results for “the quarter ended March 31, 2023” (probable typo on press release). The company had $27.9 M in cash at the end of the period, with $2.2 M in total liabilities. Prime is targeting 40,000 m of drilling at Los Reyes, in Sinaloa, for 2024, with four rigs currently active on the site.
  • Gold Royalty Corp. filed its operating and financial results for Q1 2024. The company has a 1% NSR from the Cozamin mine production in Zacatecas. “Production from Cozamin in 2024 is anticipated by Capstone to be similar to 2023 at 22,000 to 24,000 tonnes of copper on a 100% basis. Operating costs in 2024 are forecasted by Capstone to be higher than those in 2023 driven by a higher proportion of cut-and-fill mining methods compared to longhole stoping, along with a stronger Mexican peso.
  • Golden Minerals Co. released financial results for Q1 2024. The company restarted Au-Ag production from its Velardeña properties in Durango in December 2023, but stopped mining at the end of February 2024. After the period the company has entered into negotiations for the sale of all its Mexican assets. At the end of the period the company had current assets of $5.3 M, including cash and cash equivalents of $6.5 M, and current liabilities of $6.5 M.  The sale of the Velardeña assets is expected to bring in $5.5 M, and has a $1 M receivable from VAT from the Mexican government.
  • SilverCrest Metals Inc. announced its financial results for Q1 2024. At las Chispas, in Sonora, 4.2 K of underground development were completed. 85.7 K tonnes were mined, 93.4 K tonnes milled at a rate of 1,026 tpd grading 4.97 gpt Au, 479 gpt Ag, recovering 98.6% Au, 98.0% Ag to produce 14,719 Oz Au, 1.41 M Oz Ag (0r 2.58 M Oz AgEq) at cash cost $7.09 per Oz AgEq and AISC of $12.90 per Oz AgEq. The company had revenue of US$63.6 M, and by the end of the period had US$71.1 M in cash and cash equivalents, plus US$20 M in bullion. Since mid 2023 to the end of Q1 2024, 161 holes totaling 34,384 m of infill and expansion drilling were completed.
  • Discovery Silver Corp. announced financial results and an update of operations for Q1 2024. The feasibility study for the Cordero project in Chihuahua was released in February 2024, highlighting the large scale, long life and low-cost production with attractive returns, the investment of US$1.4 billion, over 1,000 jobs during operation and industry leading environmental standards. A land access agreement was reached for the use of 600 hectares adjacent to the project. By the end of the period the company had cash and cash equivalents of US$50.7 M, liabilities for US$11.4 M and working capital of $42.9 M.
  • United States Antimony Corp. reported its first quarter 2024 financial and operational results. Revenue was $2.83 M, gross profit $428 K. “all operational activities in Mexico have ceased, and this subsidiary is now reported as a “Discontinued Operation”. Overhead was substantially reduced, and business brokers are currently being interviewed to handle future disposition of these assets and/or entities” (Juarez, Queretaro).
  • Americas Gold and Silver Corp. reported consolidated financial and operational results for the first quarter of 2024, including information from its Mexican operations. The Cosalá operations in Sinaloa produced 295 K Oz Ag, 2.8 M Lb Pb, 8.0 M Lb Zn. Revenue was $19.5 M for the period.
  • Argonaut Gold Inc. reported financial and operating results for the first quarter 2024. During the quarter Argonaut entered into a definitive agreement with Alamos Gold Inc. for the acquisition by Alamos of all the issued and outstanding shares of Argonaut. Alamos will keep the Magino mine in USA, and the rest of Argonaut’s assets in USA and Mexico will be spin out to a newly created gold company. At La Colorada, in Sonora, 3,985 Oz Au were sold at cash cost $1,851 per Oz Au and an AISC of $1,929 per Oz Au. At San Agustin in Durango, 6,007 Oz Au were sold at cash cost $1,678 and an AISC of $1,731 per Oz Au. At El Castillo in Durango, 2,130 Oz Au were sold at cash cost $1,464 per Oz Au and an AISC of $1,617 per Oz Au.

ON FINANCING

  • Impact Silver Corp. is amending and increasing its previously announced non-brokered private placement from C$6.2 M to C$8.2 M (Plomosas, Chihuahua).
  • Starcore International Mines Ltd. has arranged a non-brokered private placement for gross proceeds of up to C$500 K to conduct metallurgical testing of the carbonaceous ore at the San Martin mine, in Queretaro.
  • Mag Silver Corp. filed a preliminary short form base prospectus with the securities commission in all of the provinces and territories of Canada. A corresponding registration is pending in the United States. Accordingly, the company will be permitted to offer up to US$250 M of common shares during the 25-month period that the prospectus is effective (Juanicipio, Zacatecas, 44% Mag Silver, 56% Fresnillo).
  • Silver Spruce Resources Inc. closed the first tranche of its previously announced private placement for gross proceeds of C$299.7 K (Diamante, Sonora).
  • Vortex Metals Inc. announced a correction regarding the TSV venture Exchange bulletin from May 07,2024 regarding the previously closed private placement on April 25th 2024. The company inadvertently excluded 360 K units subscribed by an investor, as a result the total amount raised in the private placement is C$1.77 M (Riqueza Marina, Oaxaca).
  • Mag Silver Corp. announced the acceptance by the TSX of the company’s notice of intention to make a normal course issuer bid. “Under the NCIB, the Company may purchase for cancellation up to an aggregate of 8,643,374 common shares in the capital of the Company (“Common Shares”), representing approximately 10% of the public float (as defined in the rules and policies of the TSX) of the Common Shares as of May 8, 2024. The Company’s purchases in the United States will be subject to a limit of 5,148,977 Common Shares, being 5% of the public float of the Common Shares as of May 8, 2024” (Juanicipio, Zacatecas, 44% Mag Silver, 56% Fresnillo).
  • Orex Minerals Inc. closed a tranche of a non-brokered private placement financing raising gross proceeds of C$337 K (Coneto, Durango).
  • Oroco Resources Corp. entered into an agreement with Red Cloud Securities Inc. to act as lead agent and sole bookrunner on behalf of a syndicate of in connection with a best efforts, private placement for gross proceeds of C$6 M (Santo Tomás, Sinaloa).
  • Aztec Minerals Corp. will extend the expiry date of certain outstanding purchase warrants. The company issued 11.4 M share purchase warrants on June 2022, entitling the holder to purchase one common share at $0.40 per share until June 6, 2024, with none of the warrants having been exercised to date. The company is seeking the approval of the Exchange to extend the expiry date to December 6, 2025 (Cervantes, Sonora).
  • Silver Viper Minerals Corp. closed the final tranche of its non-brokered private placement financing pursuant to the Listed Issuer Financing Exemption (LIFE). The final tranche comprised 2.6 M units for aggregate gross proceeds of C$263.8 K. In total, the company raised C$2.38 M (La Virginia, Sonora).

ON RESOURCES AND DEVELOPMENT

  • No Relevant News.

ON DEALS AND CORPORATE ISSUES

  • Starcore International Mines Ltd. has joined forces with Kappes, Cassiday and Associates (KCA) to launch an environmental rehabilitation project to clean up mine tailings from the municipality of El Oro, in Estado de Mexico. “The parties have executed a Memorandum of Understanding (“MOU”) to enter into a joint venture whereby KCA would provide its expertise and services for the project aimed at rehabilitating the environment, and Starcore would act as Operator of the joint venture”. KCA will cover the engineering process and Starcore will cover the cost to construct and operate the plant. All proceedings are for Starcore until the capital cost is recovered, and 70/30 Starcore/KCA basis thereafter.
  • Xali Gold Corp. informed that Kappes, Cassiday and Associates (KCA) have teamed up with Starcore International Mines Ltd to put into production Xali’s environmental rehabilitation project to clean up mine tailings at El Oro, Estado de Mexico. “Recent test work by KCA on the El Oro Tailings Project indicates excellent potential for 72% recovery of gold and 80% recovery of silver using a process being introduced to Xali Gold by KCA…… Once production begins on the El Oro Tailings Project, KCA will pay Xali Gold a gross royalty equal to 4% of the sales income received from all gold and silver produced, less any royalties due and payable to others (the Municipality of El Oro), but in no case less than a 3% gross royalty”.

ON SOCIAL RESPONSIBILITY

  • Endeavour Silver Corp. highlighted progress on its three-year sustainability strategy in 2023 sustainability report. Endeavour’s 2022-2024 sustainability strategy is centered in three pillars: People, planet and Business.

On the image below: Deformed intrusive rock cut by a dioritic dike in HQ core (6.3 cm across) from a project in the Sonoran Desert. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the First Week of May, 2024

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Quartz stockwork veining in andesites

By Miguel A Heredia

During the 18th week of the year (April 29th to May 5th, 2024), at least 27 press releases were announced by companies working in Mexico, and 2 news published by the media with eight communicating production and financial results, seven announcing financing rounds, six reporting resources and development of their properties, five disclosing deals and corporate issues, and three commenting on Mexican issues.  ON MEXICO ISSUES, At least 670 workers at the Velardeña mine, owned by the company Peñoles, located in the municipality of Cuencamé, Durango, closed the facilities of the mining complex to demand payment of profits. Mining companies such as Grupo Mexico, Torex Gold, and Cuzcatlán (Fortuna Silver) lose up to 15% of their profits due to the “Mexican superpeso”. Silver Tiger reported the best drilling intercepts in Mexico on the first week of May, 2024. ON EXPLORATION, no relevant news. ON MINING, Gold Resource announced it will reschedule release of its Q1, 2024 financial results (Don David, Oaxaca). Americas Gold and Silver provided Q1 2024 production results from its Cosala mine, Sinaloa. Luca Mining reported Q4 and full year 2023 production and financial results from their Campo Morado mine in Guerrero and Tahuehueto mine in Durango. Avino announced that it plans to release its Q1, 2024 financial results on Wednesday, May 8, 2024 (Avino mine, Durango). Coeur reported Q1, 2024 production results from its Palmarejo mine in Chihuahua. Bear Creek announced 2023 year end production and financial results from its Mercedes mine in Sonora. Capstone reported Q1 2024 production results from its Cozamin mine in Zacatecas. Santacruz announced full year 2023 production results from its Zimapan mine in Hidalgo. ON FINANCING, Fortuna Silver has renewed its share repurchase program, allowing for the repurchase of up to five percent of its outstanding common shares (San Jose mine, Oaxaca). Guanajuato Silver gave notice of an upsizing of its previously announced brokered private placement for an additional CAD $2,250,000 (El Cubo, Valenciana, and San Ignacio mines, Guanajuato). Impact Silver announced a non-brokered private placement for gross proceeds of up to $3,200,000 (Plomosas mine, Chihuahua). Infinitum Copper has amended the terms of its previously announced private placement and now it plans to rise gross proceeds of up to CAD $450,000 (La Adelita project, Sonora). Minaurum closed its previously announced private placement for gross proceeds of CAD $5,696,250 (Alamos Silver project, Sonora). Guanajuato Silver announced that it has filed an amended and restated offering document related to its previously announced brokered financing (El Cubo, Valenciana, and San Ignacio mines, Guanajuato). Infinitum Copper closed the first tranche of its previously announced private placement for gross proceeds of $1,452,600, and upsized its previously announced non-brokered listed issuer financing exemption (LIFE) private placement for gross proceeds of up to $1,700,000.  ON RESOURCES AND DEVELOPMENT, Luca Mining has successfully completed metallurgical test work for a new copper concentrate at its Campo Morado mine in Guerrero. Minera Alamos provided operational update on their Santana and Cerro de Oro properties located in Sonora and Zacatecas respectively, as well as the acquisition of Suaqui Verde project in Sonora. Torex Gold provided a Q1, 2024 update on its Media Luna property in Guerrero. Silver Tiger provided an update on the ongoing pre-feasibility study drilling program on the Stockwork gold deposit on its El Tigre project in Sonora. Minera Alamos provided an update on Cobre 4H and copper assets. Xali Gold provided an update on the company´s activities in Mexico. ON DEALS AND CORPORATE ISSUES, Prismo announced the appointment of its new President (Palos Verdes project, Sinaloa). Americas Gold and Silver announced the appointment of its new Chief Operating Officer (Cosala mine, Sinaloa). GR Silver has enhanced its financial position by signing a definitive agreement to sell Marlin Gold to WP Servicios Industriales S.A. de C.V. (Plomosas project, Sinaloa). Royalties Inc., announced advances on two of its major investments in Mexico (Bilbao project, Zacatecas).  Sonoran Desert received a Management Cease Trade Order (MCTO) due to a delay in filing required financial documents for the year ended December 31, 2023.  ON SOCIAL RESPONSIBILITY,  no relevant news.

ON MEXICO ISSUE

  • At least 670 workers at the Velardeña mine, owned by the company Peñoles, located in the municipality of Cuencamé, Durango, closed the facilities of the mining complex to demand payment of profits, this after last April the company reported that there will be no profits because the mine It was declared zero last year. Workers accused the local leaders of the “Frente” Mining Union and the national Carlos Pavón Campos of being at the service of Peñoles, since, they say, this is the third time that the company represented by Alejandro Baillères does not make the corresponding payment of the profits. The claim of the 670 workers of the Velardeña mine is added to the demands of the United States government to Industrias Peñoles to review the working conditions in one of its mines. This request responds to a request from the National Union of Mining, Metallurgical, Steel and Steel Workers. Similar ones from the Mexican Republic, headed by  senator Napoleón Gómez Urrutia of the Morena political party, who points out the alleged denial of the rights of free association and collective bargaining in one of the group’s mines. The Velardeña mine began operations in May 2013 and is currently the most important Zinc mine of Industrias Peñoles and the second largest nationally, which places Durango as one of the three main zinc-producing states in Mexico.
  • Mining companies lose up to 15% of their profits due to the “Mexican superpeso”. The results of Grupo México, Torex Gold and Cuzcatlán were weak due to the appreciation of the Mexican currency. As the Mexican peso gains ground against the dollar, mining companies such as Grupo México, Torex Gold or Cuzcatlán face a complex environment because mineral export contracts are handled in US currency, which caused profit margins to be impacted by up to a 15 percent.
  • Silver Tiger Metals Inc., reported the best drilling intercepts in Mexico on the first week of May, 2024. Details are shown in the table below:

ON EXPLORATION

  • No relevant news.

ON MINING

  • Gold Resource Corporation announced it will reschedule release of its Q1, 2024 financial results. The preliminary results announced on April 15, 2024, remain unchanged. The conference call will be hosted on Friday, May 3, 2024, at 12:00 p.m. Eastern Time (10:00 a.m. Mountain Time) (Don David, Oaxaca).
  • Americas Gold and Silver Corporation provided Q1 2024 production results from its Cosala mine, Sinaloa. The company produced approximately 295K Oz Ag, 2.8M Lb Pb, and 8M Lb Zn. Based on the current higher silver and copper price, the company decided to expedite the development of its 100% owned EC120 project at the Cosala operation. Initial access to the Zone 120 deposit occurred in Q3-2023 from the San Rafael Upper Zone development. In addition, the company continues mining and processing silver-zinc ore from the San Rafael Main and Upper Zones and is pleased with the increase in zinc prices so far in the second quarter”. 
  • Luca Mining Corp., reported Q4 and full year 2023 production and financial results from their Campo Morado mine in Guerrero and Tahuehueto mine in Durango. In Q4, 2023, Luca processed in the two plants about 130,120 tonnes of 1.4 g/t Au, 76 g/t Ag, 2.5% Zn, 0.64% Cu, and 0.7% Pb with metallurgical recoveries of 53.8%, 49.2%, 84.1%, 80.2%, and 62.6% respectively to produce 3,155 Oz Au, 155.8K Oz Ag, 6.1M Lb Pb, 1.5M Lb Cu, and 1.25M Lb Zn (11,809 Oz AuEq). Campo Morado accounted for 8,658 Oz AuEq, which represents 73% of the total production and Tahuehueto contributed 3,150 Oz AuEq, representing 27% of the total production. Cash cost and All Includes Sustaining Cost (AISC) were USD $1,244 and USD $1,437 per Oz AuEq respectively. In the full year 2023, the company processed in the two plants about 665,132 tonnes of 1.29 g/t Au, 75 g/t Ag, 2.8% Zn, 0.59% Cu, and 0.7% Pb with metallurgical recoveries of 33.2%, 46.3%, 80.4%, 66.6%, and 54.3% respectively to produce 11,832 Oz Au, 688.1K Oz Ag, 34.1M Lb Pb, 5.86M Lb Cu, and 6.02 Lb Pb (55,719 Oz AuEq). Campo Morado accounted for 43,089 Oz AuEq, which represents 73% of the total production and Tahuehueto contributed 12,630 Oz AuEq, representing 27% of the total production. Cash cost and AISC were USD $1,219 and USD $1,405 per Oz AuEq respectively. The company sold 9,951 Oz Au, 495.5K Oz Ag, 24.98 M Lb Zn, 3.8M Lb Cu, and 1.8M Lb Pb at average realized prices of USD $1,958/ Oz Au, USD $23.37/Oz Ag, USD $2,514/tonne Zn, USD $8,394/tonne Cu, and USD $2,093/tonne Pb. The company reported revenues of  $68.27M; mine operating profit of $1.47M; mine operating cashflow before taxes of $5.5M; net loss of $15M; EBITDA of $ (6.4M), and adjusted EBITDA of $(5.67M).
  • Avino Silver & Gold Mines Ltd., announced that it plans to release its Q1, 2024 financial results on Wednesday, May 8, 2024 (Avino mine, Durango).
  • Coeur Mining Inc., reported Q1, 2024 production results from its Palmarejo mine in Chihuahua. The company milled 500,747 tonnes of 1.28 g/t Au and 135 g/t Ag, with metallurgical recoveries of 95.2% and 83.7% respectively to produce 33,160 Oz Au and 1.82M Oz Ag. Coeur sold 33,462 Oz Au and 1.8M Oz Ag at average realized prices of USD $1,611 per Oz Au and USD $23.64 per Oz Ag. The company also reported (all currency expressed in US dollars) metal sales for $96.4M; cost applicable to sales for $54.3M; adjusted cost applicable to sales (CAS) of $901 per Oz Au; adjusted CAS of $13.18 per Oz Ag; exploration expenses for $2.5M; cash flow from operating activities for $25.6M; sustaining capital expenditures (excludes capital lease payments) for $4.7M; development capital expenditures for $68M; and free cash flow of $18.8M. The company announced that the full year 2024 production is expected to be 95K-103K Oz Au and 5.9-6.7M Oz Ag; the CAS is expected to be $1,075-1275 per Oz Au and $16.5-17.5 per Oz Ag; and the capital expenditures are expected to be $32-42M consisting primarily of sustaining capital and underground development.
  • Bear Creek Mining Corporation announced 2023 year end production and financial results from its Mercedes mine in Sonora. The company mined 496.7K tonnes of 2.93 g/t Au and processed 521.8K tonnes of 2.77 g/t Au with a metallurgical recovery of 94.92% to produce 43,860 Oz Au and 167K Oz Ag. It sold 44,403 Oz Au at a realized average price of USD $1,960 per Oz Au. Cash and all in sustaining costs (AISC) were USD $1,376 and USD $1,769 per Oz Au sold respectively. Bear Creek also reported revenue of USD $89.15M; comprehensive earnings (loss) after taxes of USD ($38.98M); cash generated from (used in) operating activities of USD ($1.46M); cash generated from (used in) investing activities of USD ($16.4M); and generated from (used in) financing activities of USD $18.34M.
  • Capstone Copper Corp., reported Q1 2024 production results from its Cozamin mine in Zacatecas.  The company produced 13.45M Lb Cu at cash cost of USD $1.93 per Lb Cu produced.
  • Santacruz Silver Mining Ltd., announced full year 2023 production results from its Zimapan mine in Hidalgo. The company milled 769,303 tonnes of 75 g/t Ag, 2.3% Zn, 0.8% Pb, and 0.32% Cu to produce 1.36M Oz Ag, 30.05M Lb Zn, 10.56M Lb Pb, and 2.81M Lb Cu (4.31M Oz AgEq).

ON FINANCING

  • Fortuna Silver Mines Inc., has been allowed by the Toronto Stock Exchange, the New York Stock Exchange and/or alternative Canadian trading systems to renew its share repurchase program, allowing for the repurchase of up to five percent of its outstanding common shares. The company believes that its shares may not adequately reflect their underlying value in the market. Pursuant to the normal course issuer bid, Fortuna is permitted to repurchase up to 15,287,201 common shares, being five percent of its outstanding 305,744,039 common shares as of April 26, 2024. Common shares purchased under the NCIB will be cancelled. The program will run until May 1, 2025, or until the maximum allowable shares are acquired, based on various factors including financial performance and available cash flow. Purchases will be made through open market transactions and in compliance with applicable securities laws (San Jose mine, Oaxaca).
  • Guanajuato Silver Company Ltd., gave notice of an upsizing of its previously announced brokered private placement for an additional CAD $2,250,000. The aggregate gross proceeds to the company will now be up to CAD $10,875,000 under the combined Listed Issuer Financing Exemption (“LIFE”) and Private Placement. Net proceeds will be used to   add to the company’s underground fleet and ramp up production at Guanajuato Silver’s producing mines in Guanajuato and Durango;  fund certain improvements to expand and modernize the processing facilities at the Topia mine, Durango and mill complex including capital expenditures and related costs; fund corporate head office general and administrative expenses including legal, audit, overhead and salaries for the ensuing 12 months; and carry out detailed exploration at Guanajuato Silver’s mineral properties, particularly San Ignacio and Valenciana.
  • Impact Silver Corp., announced a non-brokered private placement for gross proceeds of up to $3,200,000 from the sale of up to 11,428,572 units (the “LIFE Units”) at a price of $0.28 per LIFE Unit, and up to $3,000,000 from the sale of up to 11,111,111 standard private placement units (the “Standard PP Units”) at $0.27 per Standard PP Unit. The company intends to use the proceeds from the Offering to accelerate exploration activity at its Plomosas high-grade zinc-lead-silver property located in Chihuahua, Mexico, further develop its prolific silver assets at its legacy Royal Mines of Zacualpan district, as well as invest in operational improvements to improve productivity and throughput as the price of silver nears 52-week highs.
  • Infinitum Copper Corp., has amended the terms of its previously announced private placement and now it plans to rise gross proceeds of up to CAD $450,000 from the sale of up to 11,250,000 units of the company at a price of CAD $0.04 per unit. Gross proceeds of the offering will be used for the establishment of mining operations at the La Adelita project in Sonora and for general corporate purposes.
  • Minaurum Gold Inc., closed its previously announced private placement for gross proceeds of CAD $5,696,250 from the sale of 22,785,000 units at a price of CAD $0.25 per unit. Each unit consists of one common share of the company and one half of one common share purchase warrant. Each warrant shall entitle the holder to purchase one common share of the company at a price of CAD $0.34 at any time on or before May 2, 2024. Net proceeds will be used to complete a National Instrument 43-101 resource at Alamos Silver project in Sonora.
  • Guanajuato Silver Company Ltd., announced that it has filed an amended and restated offering document related to its previously announced brokered financing for gross proceeds of up to CAD $10,875,000. The offering is anticipated to close on or about the week of May 6, 2024, or such later date as the company and the agents may determine (El Cubo, Valenciana, and San Ignacio mines, Guanajuato).
  • Infinitum Copper Corp., closed the first tranche of its previously announced private placement for gross proceeds of $1,452,600, and upsized its previously announced non-brokered listed issuer financing exemption (LIFE) private placement for gross proceeds of up to $1,700,000. The upsized offering is for up to 10,625,000 units of the company at a price of $0.16 per unit.

ON RESOURCES AND DEVELOPMENT

  • Luca Mining Corporation has successfully completed metallurgical test work for a new copper concentrate at its Campo Morado mine in Guerrero, resulting in the production of higher value copper, zinc, and lead concentrates. Ongoing improvements at Campo Morado have led to increased copper recovery and higher concentrate grades. Open circuit, bulk rougher results returned copper recovery of between 80 and 93%. Testing indicates that copper grades as high as 28% Cu are achievable compared to current grades of 15-18%Cu in the bulk concentrate. The company’s operations are poised for advancement following the successful test work.
  • Minera Alamos Inc., provided operational update on their Santana and Cerro de Oro properties located in Sonora and Zacatecas respectively, as well on the acquisition of Suaqui Verde property in Sonora.  The company discussed operational updates at the Santana project, Sonora, including plans to optimize leach pad capacity for increased gold production. While production was reduced, site preparation works including the conclusion of pre-stripping activities in advance of a transition to the Nicho Main deposit. An updated development plan for the project which was completed late in 2023 has now been initiated and includes increased mining and stacking of approximately 25K Oz Au over a 12-month period that will commence in May 2024. Additionally, it mentioned that the engineering work continues to progress in the Cerro de Oro project, Zacatecas to advance pre-development activities to coincide with the ultimate receipt of permits and a construction decision for the project. Included in 2024 will be further metallurgical optimization studies, detailed engineering design and additional exploration drilling aimed at filling in and potentially expanding the areas of know mineralization. The acquisition of the Suaqui Verde copper project in Sonora is noted as a significant development, allowing for internal engineering studies towards establishing a regional copper production “hub” by the combination of Los Verdes, Potreritos and Suaqui Verde properties, in the area where the company maintains a significant presence.
  • Torex Gold Resources Inc., Torex Gold provided a Q1, 2024 update on its Media Luna property in Guerrero. The company has made significant progress in procurement, with 78% completion, and underground development, with 94% of bolts placed for the Guajes conveyor. The project’s execution plan remains on track, with no changes to overall end dates. Electrical deliverables are a focus, with efforts to expedite purchase orders. The project is expected to achieve first copper concentrate production by year end and commercial production in early 2025, leading to positive cash flow by mid-next year. During Q1 2024 (currency expressed in US dollars), $126.4M was invested in the project. Expenditures are expected to remain above $100M through Q3 of this year, before declining in Q4 as the project nears completion. As at quarter end, $830.6M of expenditures had been committed (95%), including $617.4M incurred (71%). There has been no change to full-year guidance of $350 to $400M on project capital expenditures.
  • Silver Tiger Metals Inc., provided an update on the ongoing pre-feasibility study drilling program on the Stockwork gold deposit on its El Tigre project in Sonora. The company has completed 23,500m of a 25,000m drilling program focused on expanding the Mineral Resource, up-grading the classification, completing metallurgical testwork and geotechnical studies as it progresses from an exploration to a development project. Drilling highlights include holes ET-23-541 with 0.52 g/t Au and 17 g/t Ag (0.75 g/t AuEq or 56 g/t AgEq) over 79.5m, including 1.08 g/t Au and 8 g/t Ag (1.19 g/t AuEq and 89 g/t AgEq) over 26.5m, plus 0.14 g/t Au and 27 g/t Ag (0.5 g/t AuEq or 38 g/t AgEq) over 10.2m; hole ET-23-543 with 0.84 g/t Au and 28 g/t Ag (1.21 g/t AuEq or 91 g/t AgEq) over 40.2m, including 1.22 g/t Au and 38 g/t Ag (1.72 g/t AuEq or 129 g/t AgEq) over 23m; hole ET-23-548 with 0.62 g/t Au and 4 g/t Ag (0.67 g/t AuEq or 51 g/t AgEq) over 71m, including 1.32 g/t Au and 2 g/t Ag (1.36 g/t AuEq or 102 g/t AgEq) over 18.5m, plus 0.68 g/t Au and 1 g/t Ag (0.69 g/t AuEq or 52 g/t AgEq) over 11.3m; and hole ET-23-550 with 0.53 g/t Au and 10 g/t Ag (0.67 g/t AuEq or 50 g/t AgEq over 21m. plus 0.9 g/t Au and 8 g/t Ag (0.94 g/t AuEq or 70 g/t AgEq9 over 81.1m.
  • Minera Alamos Inc., provided an update on its Cobre 4H Mexican subsidiary and copper assets, including the Los Verdes and Potreritos projects. The company aims to develop an independent copper entity in southern Sonora. The Los Verdes project’s PEA report highlights key economic figures and the potential impact of tungsten recovery. It has mineable resources of 7M tonnes of 0.67% Cu, 0.13% Mo, 0.07% W, and 5 g/t Ag, and reported a pre-tax net cash flow of $163M; a net present value (5%) of $113M; an internal rate of return of $34%; a mine life of 7 years; and a payback of 2.7 years. The acquisition of the Potreritos project area is discussed, with historic estimates and the possibility of incorporating its resources into the Los Verdes mining plans. Historic estimates for the Potreritos deposit include 1.4 M tonnes of indicated resources with grades of 0.47% Cu and 0.12% Mo; and 0.8 M tonnes of inferred resources with grades of 0.22% Cu and 0.033% Mo.
  • Xali Gold Corp., provided an update on the company´s activities in Mexico. At El Oro tailings project in Mexico State, Xali announced excellent potential for 75% recovery of the gold and silver using a new process being introduced by Kappes, Cassiday and Associates (KCA). “This process would allow the gold and silver to be produced in the form of Dore, which enhances the value of the royalty stream agreed with Xali Gold. Overall recoveries will need further testing to establish a better estimate for overall recoveries of gold and silver, but KCA is very optimistic about the process”. Additionally, Grupo Minero WIYA is modifying the SDA Plant in Nayarit in order to produce a single bulk concentrate production, and has commenced shipping mineralized material from their mine to the SDA Plant. Approximately 550 tonnes of mineralized rock has been received at the SDA Plant in preparation for the restart of the mill, once 1500 tonnes has been delivered. At El Oro Gold hard rock project, Xali Gold is in discussions with a local mining group to extract and process mineralized backfill from the historic San Rafael mine in Mexico State. The agreement would involve sharing profits from recovering gold and silver materials, while also providing underground access for drilling to explore new mineralized zones. Drilling from underground is more cost-effective than drilling from the surface due to the presence of up to 300m of volcanic rocks above the gold and silver veins. The historic mine has a significant production history of 5 million ounces of gold equivalent (4M Oz Au and 44M Oz Ag), indicating the potential for further mineralization at depth.

 ON DEALS AND CORPORATE ISSUES

  • Prismo Metals Inc., announced the appointment of its new President. This move will allow Co-Founder and former President & CEO, Dr. Craig Gibson to move into the role of Chief Exploration Officer (CXO) to focus more on the execution of field programs and exploration strategies (Palos Verdes project, Sinaloa).
  • Americas Gold and Silver Corporation announced the appointment of its new Chief Operating Officer, effective May 6, 2024 (Cosala mine, Sinaloa).
  • GR Silver Mining Ltd., has enhanced its financial position by signing a definitive agreement to sell Marlin Gold Mining Ltd. to WP Servicios Industriales S.A. de C.V. This transaction allows GR Silver to focus on resource growth and development of its core Plomosas Project in Sinaloa. The company will receive a 0.5% NSR Royalty on certain concessions as part of the deal. The CEO of GR Silver highlighted the positive impact on the company’s balance sheet and its ability to continue with its mining programs. WP’s Mining Division CEO expressed interest in potential cooperation with GR Silver in the region. The Plomosas Project holds significant silver resources, particularly in the San Marcial area, which is a key focus for exploration and potential development. Overall, the transaction is seen as a strategic move to strengthen GR Silver Mining’s financial position and operational focus.
  • Royalties Inc., announced advances on two of its major investments in Mexico. The company continues its lawsuit against Capstone Gold SA de CV to recognize the 2% NSR on the production since 2019 from five Portree claims on the Cozamin Mine, on which a lien has been registered, as well as monetizing its silver asset, the Bilbao silver-zinc-lead property in Zacatecas, Mexico, where the company has a 1.5% NSR.
  • Sonoran Desert Copper Corporation received a Management Cease Trade Order (MCTO) due to a delay in filing required financial documents for the year ended December 31, 2023. The company applied for the MCTO as an alternative to a general Cease Trade Order and is working with an auditor to rectify the default. The MCTO prohibits trading by specific company officials and individuals with access to undisclosed material information. If the required filings are not submitted by June 28, 2024, a general cease trade order may be imposed by the regulators. The company will provide bi-weekly default status reports until the issue is resolved.

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 picture above, quartz stockwork veining in an epithermal vein system in a project in Sinaloa, Mexico. Photo taken by Miguel A Heredia.

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

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Mn-Fe veinlets hosted in rhyolites

By Miguel A Heredia

During the 12th week of the year (March 18th to March 24th, 2024), at least 18 press releases were announced by companies working in Mexico, with seven communicating production results, four disclosing deals and corporate issues, four announcing financing issues, two reporting resources and developments of their projects, and one commenting on Mexican issues.  ON MEXICO ISSUES, Vizsla reported the best drilling intercepts in Mexico on the third week of March, 2024. ON EXPLORATION, no relevant news. ON MINING, Sierra Metals reported Q43 and year-end 2023 production results from its Bolivar mine in Chihuahua, and provided production and cost guidance for 2024. Starcore reported Q3 results ended January 31, 2024 from its San Martin mine in Queretaro. Avino reported Q4 and full year 2023 production and financial results (Avino mine, Durango). Golden Minerals released consolidated financial results from Rodeo and Velardeña mines, both located in Durango State. Orla reported Q4 and full year 2023 production and financial results from its Camino Rojo mine in Zacatecas. Orogen announced preliminary 2023 full year financial results. MAG Silver reported 2023 annual production and financial results from its Juanicipio mine in Zacatecas.  ON FINANCING, Bear Creek Mining has drawn down USD $750K for a total principal amount of USD $19,767,612.35 outstanding under the Sandstorm Promissory Note (Mercedes mine, Sonora). Americas Gold and Silver firstly announced a private placement for gross proceeds of CAD $6.5M and later increased it to CAD $7.5M (Cosala mine, Sinaloa). Sailfish declared Q1, 2024 dividend. ON RESOURCES AND DEVELOPMENT, Tocvan reported that it is advancing a significant gold-silver land package in Sonora, Mexico (Pilar project). Vizsla released results from 27 new infill and expansion drill holes targeting the Copala resource area at its flagship Panuco project, Sinaloa. ON DEALS AND CORPORATE ISSUES, Bear Creek granted 500K stock options to its CFO, exercisable at CAD $0.245 per share (Mercedes mine, Sonora). Atacama Copper retained Cascade Corporate Consulting for investor relations services (Las Cristinas project, Chihuahua). Colibri announced that it will retain 49% interest in Pilar project in Sonora and will enter into a JV.  Sailfish announced termination of share purchase option agreement with CMC.  ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUE

  • Vizsla Silver Inc., reported the best drilling intercepts in Mexico on the third week of March, 2024. Details are shown in the table below:

ON EXPLORATION

  • No relevant news.

ON MINING

  • Sierra Metals Inc., reported Q43 and year-end 2023 production results from its Bolivar mine in Chihuahua and provided production and cost guidance for 2024 (All currency amounts are expressed in US dollars). In Q4, 2023, the company processed 409,995 tonnes to produce 9,150,000 Lb CuEq at cash and all in sustaining costs of $1.90 and $3.47 per Lb CuEq payable respectively. Sierra Metals reported cost of sales of $23,243,000 and a total cash cost of $19,035,000. In the full year 2023, the company processed 1,477,889 tonnes to produce 34,579,000 Lb CuEq at cash and all in sustaining costs (AISC) of $1.87 and $3.29 per Lb CuEq payable respectively. Sierra Metals reported cost of sales of $82,188,000 and a total cash cost of $66,381,000. Sierra Metal provided production and cost guidance for 2024. It estimated to produce between 23,900,000-27,600,000 Lb CuEq, 650K-750K Oz Ag, and 8000-9,200 Oz Au at cash and AISC of $2.56-$272 and $3.28-$3.36 per Lb Cu Eq respectively.
  • Starcore International Mines Ltd., reported Q3 results ended January 31, 2024 from its San Martin mine in Queretaro. The company processed 52,700 tonnes of 1.58 g/t Au and 15 g/t Ag with metallurgical recoveries of 89.1% and 50.3% respectively to produce 2.4K Oz Au and 12.4K Oz Ag (2.5K Oz AuEq) at mine operating cash and AISC of USD $1,674 and USD $2,156 per Oz AuEq respectively. Starcore reported revenue of CAD $6,784,000 and earnings of CAD $795,000.
  • Avino Silver & Gold Mines Ltd., reported Q4 and full year 2023 production and financial results from its Avino mine in Durango (all currency amounts are expressed in US dollars). In Q4, 2023 the company milled 143,738 tonnes to produce 224.7K Oz Ag, 1,452 Oz Au, and 1.32M Lb Cu (558.5K Oz AgEq) at cash and AISC of $15.04 and $21.67 per Oz AgEq payable respectively. Avino sold 548K Oz AgEq in this period. It also reported revenue of $12.53M; mine operating income of $2.6M; net income of $0.6M, EBITDA of $1.1M, and adjusted earnings of $2M. In the full year 2023, the company milled 615,373 tonnes to produce 928.6K Oz Ag, 7,335 Oz Au, and 5.3M Lb Cu (2.4M Oz AgEq) at cash and AISC of $15.61 and $21.87 per Oz AgEq payable respectively. Avino sold 2.1M Oz AgEq in this period. It also reported revenue of $43.9M; mine operating income of $7.8M; net income of $0.5M, EBITDA of $2.5M, and adjusted earnings of $4.6M.
  • Golden Minerals Company released consolidated financial results from Rodeo and Velardeña mines, both located in Durango State (all figures are expressed in US dollars). The company reported revenue of $12M; cost of metals sold of $12.4M; other operating income of $2.3M; net loss of $9.2M or $1.08 per share; cash and equivalents balance of $3.8M; debts was zero; cash inflows of $9.7M; and total expenditures of $9.9M. Rodeo mine concluded operations in June 2023 and finished processing stockpiled material in September 2023, while Velardeña began mining activities in December 2023 given newer favorable concentrate terms, positive results of testing activities and of recent metallurgical and economic analyses, but operations were subsequently shut down in late February 2024 after the initial performance of the mine and processing plant did not achieve expected results.
  • Orla Mining Ltd., reported Q4 and full year 2023 production and financial results from its Camino Rojo mine in Zacatecas (all amounts expressed in US dollars). In the period Q4, 2023, the company produced 34,484 Oz Au and sold 31,300 Oz Au at cash and AISC per Oz Au of $536 and $802 respectively, and at an average realized Au price of $1,974 per Oz Au. It also reported revenue of $629M; net income of ($58.4M); adjusted earnings of $15.7M; adjusted earnings per share of $0.05; cash flow from operating activities of $24.7M; free cash flow of ($8.2M); cash and cash equivalents of $96.6M; and net cash (debts) of $8.3M. In the full year 2023, the company produced 121,877 Oz Au and sold 118,993 Oz Au at cash and AISC per Oz Au of $506 and $736 respectively, and at an average realized Au price of $1,941 per Oz Au. It also reported revenue of $233.6; net income of ($27M); adjusted earnings of $47.8M; adjusted earnings per share of ($0.09); cash flow from operating activities of $68.9M; free cash flow of $23.6M; cash and cash equivalents of $96.3M; and net cash (debts) of ($49.5M).
  • Orogen Royalties Inc., announced preliminary Q4 and 2023 full year financial results (all figures are in Canadian dollars). The Company’s royalty portfolio includes the Ermitaño gold and silver Mine in Sonora, Mexico (2.0% NSR royalty) operated by First Majestic Silver Corp.  For the period Q4, 2023, Orogen reported royalty revenue of $1.8M and for the full year 2023 of $5.9M. According to First Majestic, forecasted production guidance from the Santa Elena mine complex in 2024 is 81,000 to 90,000 ounces gold and 1.1 to 1.2 million ounces silver, with over 90% of the production from the Ermitaño mine. The Company estimates that this will result in royalty revenues between $4.5M and $5.0M based on gold price of USD $2,000 per Oz.  
  • MAG Silver Corp., reported 2023 annual production and financial results on a 100% basis from its Juanicipio mine in Zacatecas (44% MAG/56% Fresnillo plc) (all amounts are reported in $000´s of US dollars). The company mined 1,097,289 tonnes and processed 1,268,757 tonnes of 472 g/t Ag, 1.27 g/t Au, 1.1% Pb, and 2% Zn to produce 15.3M Oz Ag, 31.73K Oz Au, 25.9M Lb Pb, and 36.9M Lb >Zn at cash and AISC of $6.07 and $10.32 per Oz Ag sold respectively. The company also reported  a net income of $48,659 ($0.47 per share) (equity accounted) of $65,099; and adjusted EBITDA of $97,480; operating cash flow and free cash flow of $145,064 and $60,814 respectively; cash balances of $42,913; and Interest and loan principal repayments returned to MAG during 2023 totalled $33,354.

ON FINANCING

  • Bear Creek Mining Corporation has drawn down USD $750K for a total principal amount of USD $19,767,612.35 outstanding under the Sandstorm Promissory Note. Sandstorm has provided additional credit of up to USD $375K per month until August 2024, with the option to convert the drawn amounts in common shares, and will be used for continuing exploration work at its Mercedes mine in Sonora and general working capital purposes.
  • Americas Gold and Silver Corporation announced a private placement of up to 21,667,000 units of the company at a price of CAD $0.30 per unit for gross proceeds of CAD $6.5M, and later on it increased to 25,000,000 units of the company at a price of CAD $0.30 per unit for gross proceeds of CAD $7.5M. Each unit will be comprised of one common share of the company and one common share purchase warrant of the company. Part of the gross proceeds will be used for working capital requirements at its Cosala mine, Sinaloa, and for general and administrative purposes.
  • Sailfish Royalty Corp., declared Q1, 2024 dividend and announced termination of share purchase option agreement with CMC. Its Board of Directors has declared the Company’s first quarterly cash dividend for 2024 in the amount of USD $0.0125 per common share that will be payable on April 15, 2024 to Sailfish shareholders of record as of the close of business on March 31, 2024.

ON RESOURCES AND DEVELOPMENT

  • Tocvan Ventures Corp., reported that it is advancing a significant gold-silver land package in Sonora, Mexico, particularly focusing on the Pilar Project spanning over 22 square kilometers. With extensive drilling and exploration efforts, the company aims to transition towards production by developing mine permits, conducting an extensive drill program, and evaluating new target areas. Positioned in a mining-friendly jurisdiction with quality assets and surrounded by operational mines, Tocvan is poised to become a key player in the region’s mining sector.
  • Vizsla Silver Corp., released results from 27 new infill and expansion drill holes targeting the Copala resource area at its flagship Panuco project, Sinaloa. Drilling highlights (true widths reported) include holes CS-24-342 with 487 g/t Ag and 3.69 g/t Au (703 g/t AgEq) over 6m, plus 252 g/t Ag and 1.25 g/t Au (317 g/t AgEq) over 0.95m, plus 304 g/t Ag and 1.01 g/t Au (347 g/t AgEq) over 0.55m, and plus 1,435 g/t Ag and 3.83 g/t Au (1,576 g/t AgEq) over 0.6m; hole COP-2023-001 with 240 g/t Ag and 1.61 g/t Au (332 g/t AgEq) over 13.6m, including 1,075 g/t Ag and 11.55 g/t Au (1,793 g/t AgEq) over 1.1m, plus 508 g/t Ag and 1.19 g/t Au (547 g/t AgEq) over 0.80m; hole COP-2023-004 with 318 g/t Ag and 5.23 g/t Au (658 g/t AgEq) over 5.1m, including 338 g/t Ag and 16 g/t Au (1,436 g/t AgEq) over 0.28m, including 1,270 g/t Ag and 13.45 g/t Au (0.96 g/t AgEq) over 0.96m; and hole CS-24-339 with 738 g/t Ag and 2.28 g/t Au (832 g/t AgEq) over 2.92m, plus 267 g/t Ag and 0.87 g/t Au (304 g/t AgEq) over 0.8m. “The reported drilling, designed to both infill and expand mineralization, successfully confirmed high-grade continuity throughout Copala and extended mineralization by ~100m down dip to the southeast”.

ON DEALS AND CORPORATE ISSUES

  • Bear Creek Mining Corporation granted 500K stock options to its CFO, exercisable at CAD $0.245 per share, exercisable on or before March 19, 2034 (Mercedes mine, Sonora).
  • Atacama Copper Corporation retained Cascade Corporate Consulting Ltd for investor relations services to aid the company in building awareness in the financial community by maintaining relationships between the management of the company and investors (Las Cristinas project, Chihuahua).
  • Colibri Resource Corporation announced that it will retain 49% interest in Pilar project in Sonora and will enter into a JV on a 51% Tocvan / 49% Colibri basis to advance the project.
  • Sailfish Royalty Corp., announced the termination of the share purchase option agreement between the Company and CMC Metals Ltd pursuant to which the Company granted CMC the option to acquire all of the issued and outstanding shares of Swordfish Silver Corp. which, through Sailfish de Mexico S.A. de C.V., holds the mineral rights in and to the silver exploration project located in the Municipality of San Dimas, State of Durango, Mexico, known as the Gavilanes property. CMC has purported to unilaterally terminate the Agreement. The Company has accepted the termination and has engaged experienced litigation counsel in British Columbia to review this matter and seek all available remedies including damages

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 picture above, Mn-Fe veinlets hosted in rhyolites in an intermediate sulphidation epithermal vein system in a project in Chihuahua, Mexico. Photo taken by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the First Week of March, 2024

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Quartz-barite-specularite vein

By Miguel A Heredia

During the 10th week of the year (March 4th to March 10th, 2024), at least 24 press releases were announced by companies working in Mexico, with eight disclosing deals and corporate issues, five communicating production results, four announcing financing issues, four informing on exploration results, and three reporting resources and developments of their projects.  ON MEXICO ISSUES, no relevant news. ON EXPLORATION, In Sonora, Tocvan reported surface exploration results from areas located over 6km north of the El Pilar Main Zone at its Pilar project, and Aztec reported final results from the 2023 RC drilling from its Cervantes project. In Chihuahua, Radius secured funding to commence drilling at the Plata Verde project. In Durango, Centenario Gold announced results from the first drill program on its Eden project. ON MINING, SilverCrest announced that it will file its audited annual financial statement and management discussion and analysis for the fiscal year ended December 31, 2023 on March 11th, 2024 (Las Chispas mine, Sonora). Argonaut reported Q3 and year-end 2023 production and financial results from their Mexican operations. Fortuna released Q3 and end-year production results from its San Jose mine in Oaxaca. Luca Mining reported production results from its Tahuehueto, Durango and provided an update on its Campo Morado, Guerrero mine operation. MAG Silver reported a preliminary 2024 Juanicipio, Zacatecas guidance. ON FINANCING, Capitan Silver announced that it intends to rise CAD $1.5M by way of a non-brokered private placement (Cruz de Plata project, Durango). Infinitum Copper announced a private placement (amended later on) for gross proceeds of up to CAD $450K (Adelita project, Sonora). Reyna Silver increased the size of its non-brokered private placement and announced the second closing of the life offering and the first closing of the concurrent private placement (Guigui and Batopilas projects, Chihuahua).  ON RESOURCES AND DEVELOPMENT, Tocvan reported that a RC drilling is to commence at its Pilar project in Sonora. Kootenay filed a NI 43-101 Technical Report on its La Cigarra project, Chihuahua.  GR Silver provided an operational update and announced the start of a small bulk sampling and test mining at its Plomosas project in Sinaloa. ON DEALS AND CORPORATE ISSUES, US Antimony announced executive management changes. Golden Minerals announced that one member of its Board of Director has passed away (Velardeña property, Durango).  Sierra Metals announced the appointment of its Vice President, Health, & Safety, effective March 1, 2024 (Bolivar mine, Chihuahua). Pan American announced that the Toronto Stock Exchange (TSX) accepted its intention to purchase up to 5% of Pan American´s issued and outstanding shares (La Colorada, Zacatecas-Durango). Goldgroup reported a contractor fatality at its Cerro Prieto mine in Sonora. Kootenay granted stock options to officers, directors, employees, and consultants (Columba project, Chihuahua). Defiance Silver confirmed ownership of the Tepal project in Michoacan.  ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUE

  • No relevant news.

ON EXPLORATION

  • Tocvan Ventures Corp., reported surface exploration results from areas located over 6km north of Pilar´s Main Zone within its Pilar project in Sonora. Sampling returned very high-grade silver with gold values.. Two samples yielded 1,225 g/t Ag with 3.2 g/t Au and 744 g/t Ag with 0.2 g/t Au from sample material next to historical artisanal workings. One of the samples also show higher polymetallic association returning 0.42% Cu, 3.4% Zn, and over 20% Pb (assay over limit was reached).
  • Aztec Minerals Corp., reported final results from the 2023 RC drilling from its Cervantes project.  The RC drilling program consisted of 1,646m in 13 holes testing the California porphyry gold target. All drill holes intersected oxidized Au mineralization; the California target continues to be open; the California target now has an area of 1,000m by 300m drill demonstrated; and the California target was found to continue on strike to the east at least another 400m. The multi-element ICP results show good, positive relationships between Au, Cu, Bi, Ag, As, W and K (potassic alteration), negative relationships with Mo, Sb and Ca.  The multi-element grades support the potential for an Au-Cu porphyry deposit at depth.
  • Radius Gold Inc., secured funding to commence drilling at the Plata Verde project in Chihuahua, Mexico, through an option agreement with Minera San Julian and Geometales del Norte-Geonorte. The initial investment for mobilizing drilling and field teams is USD $250K, with additional funding to follow as approved by technical committee. The project has shown significant silver mineralization and historical production potential. Minera San Julian aims to spend a minimum of USD $4,762,000 over four years on exploration activities at Plata Verde and has the right to earn a 70% interest in the project.
  • Centenario Gold Corp., announced results from the first drill program on its Eden project in Durango. The company completed 1,506m in 11 core holes “testing the strike and downdip extensions of the mineralized structure along a section of the ‘Buenavista’ corridor”. All holes intersected the ‘Buenavista’ vein-breccia structure at depths ranging between 50 to 110 m. Assay results have been received on 9 of the 11 holes. Assays are pending for holes ED24-09 and ED24-11 and will be released when received.

ON MINING

  • SilverCrest Metals Inc., announced that it will file its audited annual financial statement and management discussion and analysis for the fiscal year ended December 31, 2023 on March 11th, 2024 (Las Chispas mine, Sonora).
  • Argonaut Gold Inc., reported Q3 and year-end 2023 production and financial results from their Mexican operations (all dollar amounts are expressed in USD). In Q3, 2023, the company sold at La Colorada, Sonora, 7,967 Oz Au; reported cost of sales for $13,998,000; a cost of sales per Oz Au sold of $1,757; production costs of $10,353,000; a cash cost of $10,066,000; a cash cost per Oz Au sold of $1,263; and all in sustaining cost (AISC) of $1,316. For the year-end, it sold 25,957 Oz Au; reported cost of sales for $48,556,000; a cost of sales per Oz Au sold of $1,871; production costs of $39,057,000; a cash cost of $38,065,000; a cash cost per Oz Au sold of $1,466; and AISC of $1,532. At San Agustin, Durango, the company sold in Q3, 2023 9,556 Oz Au; reported cost of sales for $17,624,000; a cost of sales per Oz Au sold of $1,844; production costs of $16,000,000; a cash cost of $15,249,000; a cash cost per Oz Au sold of $1,596; and AISC of $1,631. For the year-end, it sold 44,148 Oz Au; reported cost of sales for $81,324,000; a cost of sales per Oz Au sold of $1,842; production costs of $71,263,000; a cash cost of $66,867,000; a cash cost per Oz Au sold of $1,515; and AISC of $1,552. At El Castillo, Durango, the company sold in Q3, 2023 4,353 Oz Au; reported cost of sales for $6,362,000; a cost of sales per Oz Au sold of $1,462; production costs of $6,009,000; a cash cost of $5,972,000; a cash cost per Oz Au sold of $1,372; and AISC of $1,402. For the year-end, it sold 21,325 Oz Au; reported cost of sales for $36,005,000; a cost of sales per Oz Au sold of $1,688; production costs of $32,252,000; a cash cost of $31,837,000; a cash cost per Oz Au sold of $1,493; and AISC of $1,518.
  • Fortuna Silver Mines Inc., released Q3 and end-year production results from its San Jose mine in Oaxaca. In Q3, 2023, the company milled 241,035 tonnes of 145 g/t Ag and 0.91 g/t Au with metallurgical recoveries of 91% and 90% respectively, to produce 1,023,325 Oz Ag and 6,345 Oz Au of which sold 1,040,888 Oz Ag and 6,046 Oz Au at an average realized price of USD $23.35 per Oz Ag and USD $1,983 per Oz Au. Fortuna reported a production cash and AISC of USD $17.57 and USD $21.98 per Oz AgEq respectively. In the full year 2023, the company milled 930,200 tonnes of 171 g/t Ag and 1.06 g/t Au with metallurgical recoveries of 91% and 90% respectively, to produce 4,656,631 Oz Ag and 28,559 Oz Au of which sold 4,659,611 Oz Ag and 28,524 Oz Au at an average realized price of USD $23.36 per Oz Ag and USD $1,942 per Oz Au. Fortuna reported a production cash and AISC of USD $14.40 and USD $19.40 per Oz AgEq respectively.
  • Luca Mining Corp. reported production results from its Tahuehueto, Durango and provided an update on its Campo Morado, Guerrero mine operation. At Tahuehueto, Durango, the mine achieved a new daily production record of 655 tonnes last week. The mine plan calls for the ramp-up to an approximate 1,000 tonne per day operation during 2H 2024 which is rapidly being achieved. At Campo Morado, Guerrero, “the optimization program has to date developed fundamental improvements in productivity, operational efficiency and cashflow. Key features of the program include effective mine-to-mill planning, new procedures for ore blending, increased metallurgical test work, optimized grinding and reagent dosing for improved recoveries, and phased equipment upgrades for mine and mill”.
  • MAG Silver Corp., reported a preliminary 2024 Juanicipio, Zacatecas guidance. MAG Silver reported preliminary guidance for the production potential of the high-grade Juanicipio Mine jointly owned by Fresnillo and MAG. The silver head grade is expected to range between 380 g/t and 420 g/t for 2024, with the plant anticipated to operate at nameplate capacity per operating day with an effective utilization of 91%. MAG remains on schedule to publish its updated technical report by the end of Q1 2024, providing more definitive guidance and solidifying the outlook for the Juanicipio Mine.

ON FINANCING

  • Capitan Silver Corp., announced that it intends to rise CAD $1.5M by way of a non-brokered private placement of 10M common shares at a price of CAD $0.15 per share. Gross proceeds will be used to advance Cruz de Plata project in Durango, to evaluate potential acquisitions, as well as to fund working capital and general corporate expenses.
  • Infinitum Copper Corp., announced a private placement (amended later on) for gross proceeds of up to CAD $450K through the issue of up to 22.5M units of the company at a price of CAD $0.02 per unit. Each unit will be comprised of one common share of the company and one common share purchase warrant. Net proceeds will be used for the establishment of mining operations at La Adelita project in Sonora, and for general corporate purposes. 
  • Reyna Silver Corp., increased the size of its non-brokered private placement from $2.5M to $2.9M, and announced the second closing of the listed issuer financing exemption (LIFE) offering of 8,240,666 units for gross proceeds of approximately $988,880, and the first closing of the concurrent private placement of 12,401,610 units for gross proceeds of approximately 1,488,193. The company plans to use part of the net proceeds for the exploration of Guigui and Batopilas projects, Chihuahua. 

ON RESOURCES AND DEVELOPMENT

  • Tocvan Ventures Corp., reported that a RC drilling is to commence at its Pilar project in Sonora for resource definition and expansion, as well as evaluation of new discoveries and targets. “The initial focus will be on infill and step-out targeting within and adjacent to the Pilar Main Zone including where previous drill campaigns successfully discovered the southern extension of the Main Zone, returning 108.6 meters of 0.8 g/t Au, including 9.4 meters of 7.6 g/t Au and 5 g/t Ag”.
  • Kootenay Silver Inc., filed a NI 43-101 Technical Report titled “Mineral Resource Estimate Update for the La Cigarra Ag-Pb-Zn Project, Chihuahua State, Mexico” with an effective date of November 29, 2023.
  • GR Silver Mining Ltd., provided an operational update and announced the start of a small bulk sampling and test mining at its Plomosas project in Sinaloa. GR Silver Mining has entered commercial agreements with private local operators to explore opportunities related to the Plomosas Project. The company has started the Bulk Sampling Test Mining (BSTM) program for future use in engineering and metallurgical reports at the San Juan and La Colorada sites, which has the potential to unveil valuable geological information related to high-grade modeling & targeting, grade reconciliation, and mineral deposit modeling to define new drill targets in the vicinities of the existing historical mines. The BSTM program will allow low-cost preparation of sites for future drilling, aiming to continue resource expansion in the project.

ON DEALS AND CORPORATE ISSUES

  • US Antimony Corporation announced executive management changes. Its previous CEO was appointed as President of the Company’s Antimony Division after relinquished his title as a CEO of US Antimony Corporation (Los Juarez project, Queretaro).
  • Golden Minerals Company announced that one member of its Board of Director has passed away (Velardeña property, Durango).
  • Sierra Metals Inc., announced the appointment of its Vice President, Health, & Safety, effective March 1, 2024 (Bolivar mine, Chihuahua).
  • Pan American Silver Corp., has announced a normal course issuer bid to purchase up to 5% of its issued and outstanding shares starting on March 6, 2024. The purchases will be made on the open market through various trading platforms. The company believes that its shares may not fully reflect its underlying value, making them an attractive investment. The bid will be funded from the company’s working capital, and purchases will be made at market prices. Pan American has established an automatic securities purchase plan to facilitate share repurchases. (La Colorada, Zacatecas-Durango).
  • Goldgroup Mining Inc., reported a contractor fatality at its Cerro Prieto mine in Sonora. Relevant regulatory authorities were notified and attended the site to investigate.
  • Kootenay Silver Inc., granted stock options to officers, directors, employees, and consultants to purchase up to an aggregate of 1,310,000 million shares and issued restricted share and deferred units totalling 905,000 common shares.  The stock options have been granted at a price of $0.90 per common share for a period of five years.
  • Defiance Silver Corp., confirmed ownership of the Tepal project in Michoacan. The Mexican Court restored the Company’s rightful ownership to the mining concessions forming part of the Tepal project. As a result, the judgement is now fully enforceable, and Geologix Explorations Mexico, S.V de C.A, a subsidiary of the Company, is now confirmed as the legitimate and rightful owner of the concessions.

ON SOCIAL RESPONSIBILITY

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On the picture above, a quartz-barite-specularite vein on a project of the Sonoran Desert. Photo taken by Miguel A Heredia.