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

By Jorge Cirett

During the 34th week of the year (August 30th to September 5th, 2021), at least 21 press releases were announced by companies working in Mexico. To note, four companies posted exploration advances on their properties, four posted on mining or quarterly reports, seven on financing or shares and four more on project development or resource definition. ON MEXICO ISSUES, Camimex informed on direct and indirect employment generated by the mining industry. In 2020, Mexico was the top silver producer in the world. Sixty percent of foreign held mining projects are idle. Mexico is the ninth top producer of gold in the world, with 41.3 tonnes produced in 2020. ON EXPLORATION, in Chihuahua, Monarca Minerals completed the first two RC holes at San Jose. In Sinaloa, Vizsla Silver released results from 19 holes on the Naploleon area of the Panuco project. Durango, Canasil Resources released results from two diamond holes at Nora. In Guanajuato, Guanajuato Silver informed drilling continues at Pinguico.  ON MINING, Altaley Mining and Santacruz Silver reported second quarter 2021 results. Torex Gold released its multi-year production outlook for el Limon Guajes complex, aiming to produce 1.59 to 1.75 M Oz Au in 2021-2024. Guanajuato Silver commenced infill drilling at El Cubo. ON FINANCING, Prime Mining reported the exercise of warrants for C$9.5 M; Silver Spruce announced a financing round for up to $1 M; Mithril plans to raise up to A$3.3 M. Silver Wolf shares are now eligible for electronic clearing in the USA. SilverCrest completed the second scheduled drawdown of US$30 M. Candelaria Mining announced a non-brokered private placement for $7.8 M, on which Agnico Eagle subscribed for a $6 M consideration. ON RESOURCES AND DEVELOPMENT, Cheasapeake Gold filed a NI43-101 report on the Metates heap leach project. Zacatecas Silver is to commence drilling at Panuco. Sonora Gold reported surface assay results from Cerro Caliche. GR Silver Mining commenced 1,500 m of underground resource expansion drilling at San Marcial. ON DEALS AND CORPORATE ISSUES, No relevant news. ON SOCIAL RESPONSIBILITY, Torex Gold, Autlán, Industrias Peñoles, Fortuna Silver and Almaden Minerals informed on social responsibility actions by the companies on communities and society.

ON MEXICO ISSUES

  • Camimex (Cámara Minera de México) informed that during the first half of 2021 the mining industry generated 40,895 new direct jobs and more than 2 million new indirect jobs, boasting salaries 36% higher than the national average.  Also, during 2020 the industry invested US$3,532 M (US$3.5 billion, in American notation) and is posed to invest further US$5,034 M (US$5 billion in American notation) in 2021 and a total of more than US$24,000 M (US$24 billion in American notation) in the next six years.  
  • Mexico was the top producer of silver in the world in 2020, with 5,541 tonnes, China and Peru stand in the second and third place producing 3,443 tonnes and 2,991 tonnes respectively.
  • There are 1,190 mining projects funded by foreign capital in Mexico, but 6 of each 10 are idle, regardless of the increase in metal prices. Of the 1,190 projects, 754 are idle, 307 in exploration, 78 in production, 43 in development and 8 have closed. One of the issues affecting the mining industry in Mexico is the fiscal load, with taxes on profit of 52.7%, same tax burden that in other countries is lower: USA 30.2%, Canada 34.6%, Chile 35.7%, Peru 39.9%.
  • Mexico is the ninth producer of gold in the world, tied with Uzbekistan. Gold production during the first half of 2021 was 41,325 kg, which is 30% higher than a year before. This is the first yearly increase in gold production since the historic high of 2015, when 60,325 kg were produced. Sonora produced 29.8% of the total amount, Zacatecas 18.8% and Chihuahua 16.1%. Five companies produced almost 60% of the total, Fresnillo PLC, Newmont (Peñasquito), Torex Gold, Agnico Eagle and Alamos Gold.

ON EXPLORATION

  • Monarca Minerals Inc. informed on the completion of the first two drill holes at the San Jose project in Chihuahua. Both RC holes intersected endoskarn and exoskarn mineralization with pyrite and fine grained sulfides (probably galena and sphalerite) and local chalcopyrite. Both holes targeted geophysical anomalies.
  • Canasil Resources Inc. released results from the second and third holes of the 2021 drill program at Nora, in Durango. Highlighted true-width intervals comprise 7.18 m @ 2.05 gpt Au, 344 gpt Ag, 0.4% Pb, 0.8% Zn (including 1.87 m @ 4.42 gpt Au, 541 gpt Ag, 0.9% Pb, 1.9% Zn and 0.94 m @ 2.92 gpt Au, 766 gpt Ag, 1.0% Pb, 2.1% Zn); 0.94 m @ 5.91 gpt Au, 316 gpt Ag, 0.8% Pb, 1.7% Zn; 0.94 m @ 7.0 gpt Au, 279 gpt Ag; 0.94 m @ 2.13 gpt, 203 gpt Ag; 5.33 m @ 1.14 gpt Au, 157 gpt Ag (including 1.85 m @ 2.45 gpt Au, 284 gpt Ag); 1.36 m @ 1.30 gpt Au, 302 gpt Ag; 3.29 m @ 6.44 gpt Au, 884 gpt Ag, 0.2% Zn; 0.90 m @ 1.65 gpt Au, 431 gpt Ag, 0.1% Zn; 1.53 m @ 20.59 gpt Au, 1,290 gpt Ag, 0.1% Pb, 0.3% Zn; 2.71 m @ 2.76 gpt Au, 250 gpt Ag, 0.1% Zn. “Gold-silver mineralization is hosted within two structurally-controlled epithermal veins, Candy and Nora… The fault structure hosting the Candy vein has been traced for a distance of over 3 km…. The second vein, Nora, is found 600 metres northeast of the Candy vein and can be traced for 230 metres with widths of over 9.0 metres”.
  • Vizsla Silver Corp. released the results from 19 new holes targeting the Napoleon vein resource area at its Panuco project in Sinaloa. Highlighted true-width results comprise 1.46 m @ 10.74 gpt Au, 188 gpt Ag, 1.3% Pb, 3.5% Zn; 3.01 m @ 3.62 gpt Au, 40 gpt Ag, 0.8% Pb, 4.0% Zn; 3.40 m @ 3.10 gpt Au, 110 gpt Ag, 1.2% Pb, 1.1% Zn; 1.40 m @ 6.49 gpt Au, 114 gpt Ag, 0.8% Pb, 8.0% Zn; 5.93 m @ 11.35 gpt Au, 185 gpt Ag, 0.5% Pb, 2.2% Zn; 6.33 m @ 1.79 gpt Au, 52 gpt Ag, 0.2% Pb, 1.1% Zn. To date 105 holes on the Napoleon resource area define an average vein width of 3.5 m @ 3.11 gpt Au, 161 gpt Ag, 0.45% Pb, 1.3% Zn. A maiden resource estimate is planned for Q1 2022.
  • Guanajuato Silver Company Ltd. informed that drilling continues at El Pinguico project in Guanajuato.

ON MINING

  • Altaley Mining Corp. released its financial and operating results for Q2 2021. At Campo Morado, Guerrero, the company processed 164 K tonnes at 1,803 tonnes per day, grading 4.5% Zn, 0.34% Cu, 129 gpt Ag, 1.16 gpt Au, recovering 74% Zn, 31% Pb, at cash cost $0.48per Lb Zn and an AISC of $0.77 per Lb Zn.
  • Santacruz Silver Mining Ltd. reported its financial and operating results for the second quarter 2021. The company operating the Zimapan and Rosario mines in Hidalgo and San Lusi Potosi respectively, processed 172.3 K tonnes to produce 799 K Oz Ag at cash cost $55.48 per tonne, cash cost $19.87 per Oz Ag, an AISC of $23.74 per Oz Ag. Revenue increased to $13.7 M and gross profits to $3.8 M.
  • Torex Gold Resources Inc. informed on the multi-year outlook for production at its El Limon Guajes mining complex in Guerrero. Torex plans to produce at El Limon Guajes 430-470 K Oz Au in 2021, 430-470 K Oz Au in 2021, 400-450 K Oz Au in 2023 and 330-350 K Oz Au in 2024 (1.59-1.74 M Oz Au, total). “The current production outlook assumes production from the ELG open pits through mid-2024, and stable production from the ELG Underground through to at least the end of 2024 and likely longer based on exploration results”.
  • Guanajuato Silver Company Ltd. announced that infill and expansion drilling has commenced at its El Cubo mine in Guanajuato.

ON FINANCING

  • Prime Mining Corp.  reports the exercising of warrants for gross proceeds of C$9.52 M, resulting in a cash position of C$31.9 M. “From the 15,000 metre (“m”) Phase 1 diamond drill program at Los Reyes completed in June 2021, 29 unreported holes are expected to be released in the coming weeks” (Los Reyes, Sinaloa).
  • Silver Wolf Exploration Ltd. announced its shares are now eligible for electronic clearing and settlement in the United States (Ana Maria, Durango).
  • SilverCrest Metals Inc. announced the completion of the second scheduled drawdown of US$30 M on its previously announced US$120 Million project financing facility with an affiliate of RK Mine Finance (Las Chispas, Sonora).
  • Silver Spruce Resources Inc. announced a private placement to gather up to $1 M (El Mezquite, Sonora).
  • Candelaria Mining Corp. announced a non-brokered private placement geared to raise up to $7.8 M in gross proceeds (Caballo Blanco, Veracruz).
  • Agnico Eagle Mines Ltd. is subscribing 13.333 M units of Candelaria Mining Corp., for a total consideration of $6 M. On closing of the private placement, Agnico is to own 15.94% of the issued and outstanding shares of Candelaria (Pinos Altos, Chihuahua).
  • Mithril Resources Ltd. Is planning to raise up to A$3.3 M through a share placement (Coplaquin, Durango).

ON RESOURCES AND DEVELOPMENT

  • Chesapeake Gold Corp. filed a NI-43-101 technical report on the Metates sulfide heap leach project in Durango. The company has shipped selected drill core samples for metallurgical testing in Vancouver. “The Company will prioritize the intrusive and intrusive breccia portions of the Metates orebody with results of the testwork to be released on an ongoing basis. First results are expected in earlyQ1 2022”.
  • Zacatecas Silver Corp. informed drilling to commence at the Panuco deposit and San Gill breccia zone on its Zacatecas Silver project. The Phase One program is to include 10,000 m of drilling. “A total of three veins will be drilled — Panuco NW, Panuco Central and Tres Cruces — which remain open at depth and along strike. These are high-priority drill targets”.
  • Sonoro Gold Corp. reported assay results from surface sampling at its Cerro Caliche project in Sonora. “Surface rock samples were collected from several well-defined vein and gold mineralized structures by channel sampling perpendicular across measured veins and wall rocks with sample lengths ranging from 0.4 to 2.0 meters. Assay results from 17 samples returned grades between 2.5 and 14.3 grams of gold per tonne”. These assays are from extensions to significant structural corridors at the Buena Suerte and El Colorado zones.
  • GR Silver Mining Ltd. commenced the initial 1,500 m underground resource expansion diamond drill program at San Marcial, in Sinaloa. The program will test down-dip and along strike extensions to the existing NI-43-101 resource and new targets defined by a recent geophysical program.

ON DEALS AND CORPORATE ISSUES

  • No Relevant News.

ON SOCIAL RESPONSIBILITY

  • Minera Media Luna (Torex Gold) informed on medical supplies to some communities in Guerrero.
  • Autlán received for second consecutive year the Ethics and Values award granted by CONCAMIN (Confederación de Cámaras Industriales).
  • Peñoles received the Ethics and Values, and the Health and Wellbeing awards granted by CONCAMIN (Confederación de Cámaras Industriales).
  • Minera Cuzcatlán (Fortuna Silver) informed on aid to local communities near its San José mine in Oaxaca.
  • Fresnillo and Industrias Peñoles informed on aid to communities and organizations thorough the country.
  • Minera Gorrión (Alamaden Minerals informed on the way it is letting the communities know about its current drilling program in Puebla.

On the image below:  Low sulfidation epithermal quartz veining from a project in northern Sonora. Picture by Jorge Cirett.

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

By Jorge Cirett

During the 23rd week of the year (June 7th to June 13th, 2021), at least 25 press releases were announced by companies working in Mexico. To note, six companies posted exploration advances on their properties, three posted on financing ($2.6M, $1.43 M, C$11.5 M) and one on a debt settlement with shares, six more on project development or resource definition and three posted on deals or corporate issues. ON MEXICO ISSUES, The bodies of seven miners killed on a coal mine collapse in Coahuila have been recovered. ON EXPLORATION, in Baja, Comet Resources commenced a drill program at Santa Teresa. In Sonora, Minaurum is re-commencing drilling at its Alamos Silver project; Silver Spruce commenced phase II ground exploration at Jackie; Tarachi Gold released RC drilling results from La Dura mine at its Tarachi project. Radius gold released ground exploration results from Maricela. In Sinaloa, Kootenay Silver released good drilling results at Copalito.  ON MINING, no relevant news. ON FINANCING, Santacruz Silver settled a C$4.5 M debt by issuing shares to debtors. Three companies informed on financing rounds: Silver Viper Minerals ($1.4 M, aggregate $6 M), Mammoth Resources ($2.6 M) and Defiance Silver (C$11.5 M). ON RESOURCES AND DEVELOPMENT, GR Silver Mining reported drill results from Plomosas, in Sinaloa. Endeavour Silver released high-grade intercepts at Terronera, Jalisco. Advance Gold released (low) lithium drilling results from the Saldivar Salar in San Luis Potosi. GoGold Resources reported drilling results from Los Ricos North in Jalisco. Golden Tag Resources released drilling results from a bulk tonnage target at San Diego, Durango. Golden Minerals reported assay results from expansion drilling at Rodeo, Durango.  ON DEALS AND CORPORATE ISSUES, Millrock Resources and Tocvan Ventures signed a letter of commitment in relation to El Picacho project in Sonora. Telson Mining completed its change name to Altaley Mining. VanGold Mining announced its name change to Guanajuato Mining. ON SOCIAL RESPONSIBILITY, Peñoles and Fresnillo PLC informed on actions the companies realize to help the environment. Mazapil inhabitants evaluated the water quality they receive with Minera Peñasquito support.

ON MEXICO ISSUES

  • The bodies of six of seven miners have been recovered after the collapse of a coal mine in Coahuila.
  • Luisa María Alcalde, head of the Secretariat of Work and Social Prevision informed the mine collapse in Coahuila that caused several fatalities was due to strong rains in the region.

ON EXPLORATION

  • Kootenay Silver Inc. released results from five holes at its Copalito project in Sinaloa. The holes are from the 5 Señores vein, which has now been tested on 600 m of its 1 km known extension. Highlighted core length results comprise 35 m @ 75 gpt Ag, 0.6 gpt Au, 0.1% Pb+Zn (126 gpt AgEq) which include 1.70 m @ 43 gpt Ag, 2.56 gpt Au, 0.8% Pb+Zn (218 gpt Ag) and 1.31 m @ 264 gpt Ag, 0.23 gpt Au, 2.3% Pb+Zn (326 gpt AgEq); 19.43 m @ 218 gpt Ag, 0.83 gpt Au, 1.5% Pb+Zn (306 gpt AgEq) including 7.97 m @ 330 gpt Ag, 1.23 gpt Au, 2.0% Pb+Zn (456 gpt AgEq); 15.0 m @ 61 gpt Ag, 0.75 gpt Au, 0.4% Pb+Zn (119 gpt Ag) including 2.0 m @ 220 gpt Ag, 3.79 gpt Au, 0.4% Pb+Zn (475 gpt AgEq); 12.0 m @ 66 gpt Ag, 0.17 gpt Au, 0.8% Pb+Zn (96 gpt AgEq) including 2.20 m @ 241 gpt Ag, 0.42 gpt Au, 0.8% Pb+Zn (289 gpt AgEq); 10.0 m @ 65 gpt Ag, 0.11 gpt Au, 0.3% Pb+Zn (79 gpt AgEq) including 1.68 m @ 210 gpt Ag, 0.45 gpt Au, 0.4% Pb+Zn (248 gpt AgEq).
  • Minaurum Gold Inc. informed on rig mobilization to its Alamos silver property in Sonora. “Drilling will focus on defining emerging silver shoots in previously explored veins as well as discovering new shoots in underexplored veins. Drill targets will be 100- to 150-metre step-outs of, up- and down-dip, and along-strike of mineralized vein zones, with allowances made for plunging shoots. Minaurum is also continuing reconnaissance work to the south and west in the Alamos project to develop new target veins for later drilling”. Some of the zones to be tested include the Europa-Guadalupe, San José, Minas Nuevas, Alessandra, Ana, Promontorio, Púlpito and Cotera.
  • Comet Resources Ltd. Commenced a 2,000 m diamond drilling program at Santa Teresa, in Baja California. This is the first drilling program since Premier Gold tested the property in 2008.
  • Radius Gold Inc. defined high grade and bulk tonnage targets at its Maricela project in Sonora. Rock chip sampling returned up to 3 m @ 4.46 gpt Au, 1,335 gpt Ag; 22.0 m @ 0.15 gpt Au, 39 gpt Ag; 4 m @ 1.23 gpt Au, 111 gpt Ag at Baby Gloria, 25.3 m @0.31 gpt Au, 62 gpt Ag; 10 m @ 0.62 gpt Au, 142 gpt Ag at Virgen de Plata, 4 m @ 0.45 gpt Au, 98 gpt Ag; 10.5 m @ 0.50 gpt Au, 105 gpt Ag at EL Arco; 6 m @ 1.03 gpt Au, 417 gpt Ag at Central. “The project hosts an epithermal silver & gold mineralized vein system extending approximately 1.5km long by 300m wide, within which occurs multiple veins, stockworks and breccias which at intersections have exposed widths +25 meters. Recent mapping and sampling (273 rock chips) identified 6 major veins with combined strike approximately of 5km”.
  • Silver Spruce Resources Inc. commenced phase II ground exploration at the 1,130 ha Jackie property in Sonora. “The work will be performed on a 100-hectare section of the Property with grid-controlled detailed geological mapping and rock sampling focused on a 25-hectare central block covering the core of the gold and silver discovery area with additional wider spaced grid mapping of the surrounding area”.
  • Tarachi Gold Corp. released results from surface reverse circulation holes drilled on La Dura mine within the Jabali concession at the Tarachi project in Sonora. Highlighted hole-length intervals comprise 3.0 m @ 0.63 gpt Au, 9.0 m @ 0.22 gpt Au, 3.0 m @ 0.37 gpt Au, 3.0 m @ 2.35 gpt Au; 1.50 m @ 1.56 GPT Au; 12.0 m @ 7.26 gpt Au (including 6.0 m @ 12.2 gpt Au); 3.0 m @ 1.68 gpt Au, 12.0 m @ 0.23 gpt Au. “The drill program tested the down-dip and potential southern plunge in areas of known gold bearing structures”. 

ON MINING

  • No relevant news.

ON FINANCING

  • Santacruz Silver Mining Ltd. announced the settling of a debt of C$4.47 M by issuing 10.3 M shares to Empresa Minera Manquiri S.A. and Minas Guilloyna S.A. de C.V. (Zimapan, Hidalgo).
  • Mammoth Resources Corp. closed its previously announced oversubscribed non-brokered private placement financing to raise up to $2.6 M in gross proceeds (Tenoriba, Chihuahua).
  • Silver Viper Minerals Corp. closed the final tranche of its non-brokered private placement for aggregate proceeds of $1.43 M. Aggregate profits under the offering were $6 M (La Virginia, Sonora).
  • Defiance Silver Corp. closed the previously announced brokered private placement for Gross proceeds of C$11.5 M (San Acacio, Zacatecas; Tepal, Michoacan).

ON RESOURCES AND DEVELOPMENT

  • GR Silver Mining Ltd. reported drill results from the Plomosas project in Sinaloa. Highlighted true width (TW) intercepts on the northern portion of the Plomosas mine area of polymetallic hydrothermal breccia comprise 16.2 m @ 75 gpt Ag, 0.25 Au, 0.7% Pb, 0.8% Zn, 0.1% Cu (including 5.8 m @ 171 gpt Ag, 0.41 gpt Au, 1.1% Pb, 0.7% Zn, 0.2% Cu); 7.6 m @ 227 gpt Ag, 0.27 gpt Au, 1.7% Pb, 1.4% Zn, 0.1% Cu; 10.7 m @ 12 gpt Ag, 2.48 gpt Au, 1.1% Pb, 1.5% Zn (including 1.5 m @ 17 gpt Ag, 15.81 gpt Au, 1.1% Pb, 3.9% Zn); 3.6 m @ 100 gpt Ag, 0.14 gpt Au, 0.2% Pb, 1.1% Zn, 0.5% Cu; 21.0 m @ 25 gpt Ag, 0.67 gpt Au, 1.6% Pb, 2.4% Zn, 0.1% Cu).
  • Endeavour Silver Corp. announced high-grade intercepts in a number of structures near the Terronera vein at Terronera, Jalisco. True width intercepts comprise 1.12 m @ 0.32 gpt Au, 170 gpt Ag; 2.14 m @ 3.97 gpt Au, 73 gpt Ag; 5.59 m @ 2.17 gpt Au, 177 gpt Ag; 1.35 m @ 9.78 gpt Au, 214 gpt Ag at San Simón, 1.41 m @ 2.20 gpt Au, 54 gpt Ag; 2.88 m @ 6.05 gpt Au, 1,056 gpt Ag; 1.98 m @ 3.38 gpt Au, 347 gpt Ag; 1.39 m @ 2.04 gpt Au, 66 gpt Ag at Fresno, 1.08 m @ 2.63 gpt Au, 25 gpt Ag at Lindero, 1.08 m @ 1.09 gpt Au, 445 gpt Ag at Pendencia, and 1.95 m @ 9.52 gpt Au, 148 gpt Ag; 1.07 m @ 2.81 gpt Au, 54 gpt Ag at Los Cuates.
  • Advance Gold Corp. announced results from four core holes at its Saldivar Salar in San Luis Potosí. One hole averaged 84 m @ 136 ppm Li (232 ppm peak value), 225 ppm B, 1.3 % K; a second hole averaged 77 m @ 142 ppm Li (229 ppm peak value), 213 ppm B, 1.3% K; a third hole averaged 53 m @ 130 ppm Li (214 ppm peak value), 230 ppm B, 1.2% K; a fourth hole returned 50 m @ 137 ppm Li (231 ppm peak value), 226 ppm B, 1.4% K. 
  • GoGold Resources Inc. released results from drilling on El Orito prospect at it Los Ricos North project in Jalisco. Highlighted core length intersections comprise 9.5 m @ 20 gpt Ag, 0.03 gpt Au, 0.10% Cu, 0.3% Pb, 0.7% Zn; 12.4 m @ 38 gpt Ag, 0.08 gpt Au, 0.23% Cu, 2.1% Pb, 3.8% Zn (including 2.6 m @ 93 gpt Ag, 0.09 gpt Au, 0.61% Cu, 5.3% Pb, 9.9% Zn); 3.0 m @ 222 gpt Ag, 1.93 gpt Au, 0.29% Cu, 2.7% Pb, 0.1% Zn; 44.3 m @ 23 gpt Ag, 0.04 gpt Au, 0.08% Cu, 0.7% Pb, 1.2% Zn (including 4.9 m @ 44 gpt Ag, 0.16 gpt Au, 0.16% Cu, 2.5% Pb, 3.5% Zn); 26.6 m @ 14 gpt Ag, 0.04 gpt Au, 0.07% Cu, 1.1% Pb, 1.3% Zn (including 5.1 m @ 38 gpt Ag, 0.17 gpt Au, 0.20% Cu, 4.5% Pb, 1.9% Zn); 29.4 m @ 36 gpt Ag, 0.06 gpt Au, 0.23% Cu, 2.2% Pb, 4.1% Zn; (including 6.3 m @ 90 gpt Ag, 0.09 gpt Au, 0.65% Cu, 5.2% Pb, 9.5% Zn); 23.0 m @ 61 gpt Ag, 0.08 gpt Au, 0.40% Cu, 2.4% Pb, 4.9% Zn; 58.0 m @ 31 gpt Ag, 0.04 gpt Au, 0.19% Cu, 1.2% Pb, 2.6% Zn. “mineralization averaging approximately 30m in width for more than 700m in strike length and up to approximately 300m in vertical depth from surface and is open in all directions….. The known strike length of the El Orito – El Favor structure is now approaching 2,500 meters and is still open in both directions”.
  • Golden Tag Resources Ltd. released results from a diamond hole at the Trovador zone of its San Diego project in Durango. Highlighted results comprise 8.40 m @ 0.58 gpt Au, 30 gpt Ag, 0.3% Pb, 0.4% Zn, 0.09% Cu; 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, 0.05% Cu (including 14.47 m @ 0.03 gpt Au, 81 gpt Ag, 1.9% Pb, 2.2% Zn, 0.12% Cu); 116.45 m @ 0.03 gpt Au, 42 gpt Ag, 0.6% Pb, 0.7% Zn; 2.71 m @ 0.05 gpt Au, 97 gpt Ag, 0.5% Pb, 3.1% Zn, 0.35% Cu.
  • Golden Minerals Co. released initial results from its expansion drill program at its Rodeo open pit mine in Durango. Highlighted results comprise 14.65 m @ 3.94 gpt Au, 8 gpt Ag; 9.30 m @ 5.38 gpt Au, 10 gpt Ag; 3.70 m @ 7.02 gpt Au, 21 gpt Ag (including 0.90 m @ 21.09 gpt Au, 50 gpt Ag); 13.75 m @ 2.64 gpt Au, 10 gpt Ag, 6.35 m @ 1.41 gpt Au, 36 gpt Ag; 3.80 m @ 2.69 gpt Au, 26 gpt Ag.
  • GR Silver Mining Ltd. reported drill results from high-grade epithermal veining from La Colorada and San Juan veins at Plomosas, Sinaloa. Highlighted core length intervals comprise 9.0 m @ 710 gpt Ag, 1.82 gpt Au, 1.1% Pb, 0.3% Zn, 0.1% Cu (including 0.7 m @ 8,519 gpt Ag, 18.77 gpt Au, 8.9% Pb, 0.7% Zn, 0.2% Cu); 33.0 m @ 20 gpt Ag, 0.11 gpt Au, 0.5% Pb, 0.3% Zn; 11.1 m @ 139 gpt Ag, 0.69 gpt Au, 0.1% Pb, 0.2% Zn; 7.0 m @ 341 gpt Ag, 1.00 gpt Au, 0.2% Pb, p.6% Zn; 2.1 m @ 480 gpt Ag, 0.05 gpt Au, 0.2% Pb, 0.2% Zn. “The La Colorada vein is a hydrothermal breccia that contains Au-Ag-Pb-Zn values in a mineralized quartz and hematite matrix. It is hosted in andesite and ignimbrite country rock. Sphalerite, galena and acanthite (Ag-bearing mineral) are found in the quartz veins.”.

ON DEALS AND CORPORATE ISSUES

  • Millrock Resources Inc. signed a letter of commitment with Tocvan Ventures Corp. in relation to 2,414 ha El Picacho gold project in Sonora, west of the San Francisco mine. Tocvan must make make cash payments of US$2 M to the underlying concession owners over a five-year term to acquire 100% interest in the project, pay back taxes and Millrock is to retain a 2% NSR, of Which Tocvan may purchase back 1% for US$1 M.
  • Telson Mining Corp. is completing its name change to Altaley Mining Corp. on June 11, 2021 (Campo Morado, Guerrero).
  • VanGold Mining Corp. announced the name change to Guanajuato Mining Corp. to be effective from June 10, 2021 (El Cubo and El Pinguico, Guanajuato).

ON SOCIAL RESPONSIBILITY

  • Peñoles and Fresnillo PLC informed on actions the companies realize to help the environment.
  • Mesas Mazapil inhabitants informed on the supervision they do on the water source delivered by Minera Peñasquito.

On the image below:  Felsic volcanic rocks autobreccia with hematite rich matrix in Sinaloa. Picture by Jorge Cirett.

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

By Jorge Cirett

During the 21st week of the year (May 24th to May 30th, 2021), at least 33 press releases were announced by companies working in Mexico. To note, seven companies posted exploration advances on their properties, three presented mining related news, seven posted on financing (C$6M, $60 M, C$5 M, C$10 M, $2.6 M, $C$11.5 M) and one on share distribution, six more on project development or resource definition and two posted on corporate issues. ON MEXICO ISSUES, CanCham complained on the lack of clear policies and opacity on the rule of law that are affecting Canadian investments in Mexico.  The push from the Mexican government to create an institution to manage the lithium industry from the optics of sovereignty sees opposition from the mining industry, and reality. Camimex released a list of mining investments to be realized in the next few years, amounting to several billion dollars. ON EXPLORATION, in Sonora, Ridgestone Mining applied for drilling permits at Rebeico. Tocvan Ventures released results from drilling at Pilar. In Chihuahua, Kootenay Silver released high-grade results from drilling at Columba. In Durango, Mithril Resources, updated on drilling at Copalquin. In Sinaloa, Riverside Resources released surface sample results; Vizsla Silver informed on geophysical results supported by drilling, and more surveys to come; Brigadier Gold discovered bulk tonnage copper mineralization in trenching of soil anomalies. ON MINING, Impact Silver and Telson Mining presented Q1 2021 results. Magna Gold informed it has exceeded 3 M man-hours of work without lost-time incidents. ON FINANCING, Silver Bull Resources is to distribute 34.2 M shares of Arras Minerals among its shareholders. Six companies informed on financing rounds: Silver Viper Minerals (C$6 M), Vizsla Silver ($60 M), Reyna Silver (C$5 M), Sable Resources (C$10M, Defiance Silver (C$11.5 M) and Mammoth Resources ($2.58 M). ON RESOURCES AND DEVELOPMENT, Prime Mining released drilling results from Los Reyes. GR Silver Mining reported near surface drill results from Plomosas. GoGold Resources released drilling results from the Casados deposit at Los Ricos North. Discovery Silver released results from 12 drill holes targeting high-grade vein trends at Cordero. Sailfish Royalty filed a technical report with a new resource estimate for Gavilanes. Discovery Silver updated on exploration at Cordero, with 75,000 m of drilling completed on 178 holes, and four drills continuing the phase 2 program. Golden Tag announced the discovery of a shallow zone of epithermal mineralization at San Diego.   ON DEALS AND CORPORATE ISSUES, Mexus Gold informed Fresnillo PLC is reviewing its Santa Elena mine. Riverside Resources announced BHP is funding a third year of generative work in Sonora. ON SOCIAL RESPONSIBILITY, Peñoles and Fresnillo PLC informed on their policies and programs to aid in education on a wide range of communities. Minera San Xavier informed Cerro San Pedro in San Luis Potosi has been declared as “Cyanide Free Site” by the International Cyanide Management Institute.

ON MEXICO ISSUES

  • CanCham (Cámara de Comercio de Canadá en México) pointed out that the lack of clear policies and the opacity on rule of law is affecting Canadian investments, which show an 18% decrement in the last year, holding the investment of thousands of millions (Mexican number notation) of dollars in the energy, mining, pharmaceutical and agricultural sectors. These remarks were expressed by Enrique Zorrilla, Cancham’s president, in the meeting between the Commerce ministers of Mexico, Canada and the United States.
  • Mexico is preparing its strategy to develop the lithium market. The federal government intends to become a lithium producer by controlling several deposits, Bolivia’s advice and a commerce treatise to facilitate establishing an electric battery factory. The current government senate fraction is preparing a proposal to create the Instituto Nacional del Litio. (Lithium National Institute) and to declare lithium as Nation’s exclusive property (Note. – This federal initiative push misses the point that so far there is not a single lithium mine in Mexico, that its lithium in brines potential is limited at best, and that the economics of lithium extraction from clays -like in the Bacanora Lithium’s deposit in Sonora- is not yet clear).
  • Fernando Alanís, president of Camimex (Cámara Minera de México) informed that lithium deposits in Mexico have a very low grade, and lack the technology for its extraction, reason for which the country is far from becoming a world power in lithium production. Lithium presents in three kind of deposits: hard rock (pegmatites), brines (from salt lakes) and clays. Rock and brine lithium extraction accounts for 100% of the world production, whereas the extraction of lithium from clays is very energy intensive and expensive, not having a single producing mine in the entire planet.
  • Camimex released a table with the Mexican Mining Developments programmed for the next few years, same that reach US$7,820 Million in investment (Mexican number notation, equivalent to US$7.8 billion).

ON EXPLORATION

  • Mithril Resources Ltd. provided an update on drilling at its Copalquin project in Durango. The current program main focus is to extend the Refugio ore shoot down dip (presently 600 m along strike, 200 m down dip, 5 m in width), maiden drilling at Los Pinos target, extend three holes and deep exploration drilling at La Soledad and extend near-surface intercepts at El Cometa.
  • Ridgestone Mining Inc. commenced permitting for drill programs at Guadalupe y Calvo, Chihuahua, and Rebeico, Sonora.
  • Riverside Resources Inc. reported surface sample results from its La Silla project in Sinaloa. The highlighted samples from the El Ciruelo and El Roble targets returned 6.1 gpt Au, 80 gpt Ag; 5.6 gpt Au, 81 gpt Ag; 4.4 gpt Au, 35 gpt Ag; 3.5 gpt Au, 26 gpt Ag; 3.3 gpt Au, 20 gpt Ag; 2.6 gpt Au, 41 gpt Ag, on quartz veining, gossanous breccia and strongly oxidized andesite. El Ciruelo target extends for at least 1 km with a 1-5 m wide chalcedonic vein zone. El Roble vein extends for at least 300 m, reaching up to 2 m in width, with mineralization occurring also in the host rock.
  • Vizsla Silver Corp. provided an update on the recently completed geophysical survey completed at Panuco, in Sinaloa. A fixed loop electromagnetics (FLEM, or EM) was trialed and detected massive sulfide mineralization on the Napoleon and Josephine veins, proved with three massive sulfide intercepts in the latter. The Josephine vein has no known surface expression and runs parallel to the west of the main Napoleon trend. Mineralization at Tajitos is not related to massive sulfides and was not detected with EM. Vizsla is planning a property wide airborne EM-magnetic survey at Panuco.
  • Kootenay Silver Inc. announced high-grade results from the 5,000 m core drill program currently underway at Columba, Chihuahua. Highlighted core length intervals in the Hanging-Wall, F, and Footwall veins comprise 1.55 m @ 189 gpt Ag, 0.1%Pb, 0.2% Zn; 1.0 m @ 104 gpt Ag, 0.1% Zn; 2.44 m @ 217 gpt Ag, 0.1% Pb, 0.1% Zn; 2.94 m @ 321 gpt Ag, 0.2% Pb, 0.6% Zn (including 1.94 m @ 428 gpt Ag, 0.3% Pb, 0.7% Zn); 8.0 m @ 130 gpt Ag, 0.1% Pb, 0.2% Zn (including 2.9 m @ 265 gpt Ag, 0.1% Pb, 0.5% Zn); 1.95 m @ 104 gpt Ag, 0.1% Pb, 0.1% Zn; 9.0 m @ 354 gpt Ag, 0.1% Pb, 0.4% Zn (including 2.63 m @ 809 gpt Ag, 0.3% Pb, 0.4% Zn); 30.0 m @ 86 gpt Ag (including 2.37 m @ 425 gpt Ag, 0.2% Zn).
  • Brigadier Gold Ltd. announced the discovery of bulk tonnage type copper mineralization at its Picachos project in Sinaloa. Fifty meters on trenching of historic copper anomalies has returned XRF copper values ranging from 0.05 to 1.34% Cu and 20 to 284 ppm Ag. Brigadier has also completed mapping and sampling of the historic La Gloria mine, where a drill hole intercepted 1.0 m @ 6.26 gpt Au.
  • Tocvan Ventures Corp. released results for the first three holes of its phase-II drill program at Pilar, in Sonora. The drill program consists of 2,900 m of reverse circulation drilling in 17 holes, of which 14 are pending results. Highlighted down-hole intercepts comprise 29 m @ 0.71 gpt Au (including 6.1 m @ 1.9 gpt Au); 24.4 m @ 0.56 gpt Au (including 9.2 m @ 1.3 gpt Au, 14 gpt Ag); 6.1 m @ 0.48 gpt Au, 4 gpt Ag; 4.6 m @ 0.50 gpt Au, 11 gpt Ag.

ON MINING

  • Impact Silver Corp. presented its financial and operating results of Q1 2021. During the period 36.4 K tonnes were processed @ 162 gpt Ag to produce 156.9 K Oz Ag. “continued exploration on the north and south extensions of the Veta Negra Mine, trenching on the bulk tonnage gold target at Manto America in the central part of the district and exploration on the northwest (Pachuqueno) extensions of the Guadalupe Mine”.
  • Magna Gold Corp. has exceeded 3 M man-hours of work without lost-time incidents within all its operations, including contractors and suppliers. The last lost-time incident was in 2018, and the mine has not had a fatal accident in its 11 years history.
  • Telson Mining Corp. presented its first quarter 2021 financial and operating results. At Campo Morado in Guerrero, 174.4 K tonnes were processed to produce 11,013 tonnes Zn (74% Zn recovery), 1,908 tonnes Pb at cash cost $0.70 per Lb Zn and AISC of $0.90 per Lb Zn. During the period gross revenue was $21.2 M (Q1 2020: $19.0 M) and mine operating profit $5.25 M (Q1 2020: $0.26 M loss).

ON FINANCING

  • Silver Bull Resources Inc. announced its intent to distribute 34.2 M shares of Arras Minerals Corp. to Silver Bull shareholders. Silver Bull transferred mineral properties in Kazakhstan and received 36 M shares of Arras in return, making Arras an approximately 88%-owned subsidiary of Silver Bull (Sierra Mojada, Coahuila).
  • Silver Viper Minerals Corp. intends to undertake a non-brokered private placement financing to raise aggregate gross proceeds of up to C$6 M (La Virginia, Sonora).
  • Vizsla Silver Corp. entered into an agreement with Canaccord Genuity Corp. on behalf of a syndicate of underwriters to buy units of the company for gross proceeds of $60 M (Panuco, Sinaloa).
  • Reyna Silver Corp. entered into an agreement with Eight Capital and Red Cloud Securities Inc. in connection with a private placement intended to raise up to C$5 M (Guigui and Batopilas, Chihuahua).
  • Sable Resources Ltd. entered into an agreement with Sprott Capital Partners LP and Eight Capital in connection with a bought deal private placement financing to raise up to C$10 M (Vinata, Chihuahua).
  • Mammoth Resources Corp. Announced a non-brokered private placement financing aiming to raise up to $2 M, same that by the next day had been increased to $2.58 M (Tenoriba, Chihuahua).
  • Defiance Silver Corp. has increased the size of its previously announced private placement with Red Cloud Securities Inc. for gross proceeds of up to C$11.5 M (Bolañitos and Pinguico, Guanajuato).

ON RESOURCES AND DEVELOPMENT

  • Prime Mining Corp. released additional results from its ongoing 15,000 m drill program at Los Reyes, Sinaloa. The Highlighted true width intercepts are from the Guadalupe East, Zapote South and the Estaca vein: 11.6 m @ 8.12 gpt Au, 725 gpt Ag; 5.6 m @ 11.95 gpt Au, 1,221 gpt Ag; 2.1 m @ 21.63 gpt Au, 1,960 gpt Ag; 2.0 m @ 11.17 gpt Au, 909 gpt Ag; 2.4 m @ 2.00 gpt Au, 121 gpt Ag; 1.4 m @ 10.50 gpt Au, 300 gpt Ag; 3.9 m @ 0.45 gpt Au, 37 gpt Ag; 0.6 m @ 93.80 gpt Au, 829 gpt Ag.
  • GR Silver Mining Ltd. reported near surface drill results from the Plomosas mine area in Sinaloa. Highlighted true width intervals comprise 11.9 m @ 84 gpt Ag, 2.3% Pb, 2.7% Zn, 0.1% Cu; 16.7 m @ 7 gpt Ag, 0.22 gpt Au, 0.1% Pb, 0.3% Zn; 10.8 m @ 3 gpt Ag, 0.20 gpt Au, 0.1% Pb, 0.4% Zn; 4.2 m @ 10 gpt Ag, 0.09 gpt Au, 0.1%Pb, 0.6% Zn, 0.1% Cu; 2.1 m @ 350 gpt Ag, 1.0% Pb, 0.4% Zn; 1.9 m @ 348 gpt Ag, 0.3% Pb, 0.3% Zn; 1.3 m @ 26 gpt Ag, 0.19 gpt Au, 3.3% Pb, 3.3% Zn; 1.0 m @ 128 gpt Ag, 1.00 gpt Au, 9.0% Pb, 9.7% Zn, 0.2% Cu; 2.6 m @ 45 gpt Ag, 0.60 gpt Au, 3.0% Pb, 0.9% Zn; 4.7 m @ 187 gpt Ag, 0.18 gpt Au, 2.2% Pb, 1.2% Zn, 0.1% Cu; 2.0 m @ 277 gpt Ag, 0.22 gpt Au, 0.2% Pb, 0.4% Zn; 1.9 m @ 283 gpt Ag, 0.82 gpt Au, 0.3% Pb, 1.0% Zn, 0.1% Cu.
  • GoGold Resources Inc. released results of nine holes on the Casados deposit at the Los Ricos North project in Jalisco. Highlighted core length intersects comprise 29.9 m @ 0.25 gpt Au, 70 gpt Ag; 15.5 m @ 0.27 gpt Au, 67 gpt Ag; 34.4 m @ 0.17 gpt Au, 67 gpt Ag; 5.3 m @ 0.65 gpt Au, 305 gpt Ag; 9.2 m @ 0.24 gpt Au, 109 gpt Ag (including 1.9 m @ 0.61 gpt Au, 442 gpt Ag); 60.5 m @ 0.21 gpt Au, 44 gpt Ag; 2.1 m @ 0.57 gpt Au, 322 gpt Ag; 54.1 m @ 0.37 gpt Au, 92 gpt Ag; 28.5 m @ 0.43 gpt Au, 100 gpt Ag (including 1.8 m @ 2.09 gpt Au, 418 gpt Ag); 14.0 m @ 0.46 gpt Au, 134 gpt Ag (including 5.3 m @ 1.04 gpt Au, 304 gpt Ag); 2.6 m @ 2.93 gpt Au, 610 gpt Ag.
  • Discovery Silver Corp. released results from 12 diamond drill holes testing the Josefina and Todos Santos high-grade vein trends at the Cordero project in Chihuahua. Highlighted intercepts on the Josefina vein trend comprise 41.5 m @ 97 gpt Ag, 0.04 gpt Au, 1.0% Pb, 2.5% Zn (including 4.1 m @ 520 gpt Ag, 0.11 gpt Au, 3.0% Pb, 9.8% Zn and 3.3 m @ 182 gpt Ag, 0.09 gpt Au, 3.4% Pb, 7.1% Zn); 13.1 m @ 112 gpt Ag, 0.13 gpt Au, 1.3% Pb, 2.2% Zn; 36.4 m @ 66 gpt Ag, 0.10 gpt Au, 0.3% Pb, 1.0% Zn; 87.4 m @ 38 gpt Ag, 0.06 gpt Au, 0.2% Pb, 1.0% Zn; 3.6 m @ 343 gpt Ag, 0.11 gpt Au, 1.7% Pb, 2.7% Zn; 19.3 m @ 40 gpt Ag, 0.06 gpt Au, 0.7% Pb, 1.4% Zn); 22.4 m @ 156 gpt Ag, 0.10 gpt Au, 1.7% Pb, 2.3% Zn (including 3.7 m @ 299 gpt Ag, 0.16 gpt Au, 3.9% Pb, 5.7% Zn). The Josefina vein trend includes two subparallel veins that run for 1.5 km, and has been tested to 370 m depth and remains open. The Todos Santos vein trend consists of two closely spaced veins, extends for at least 1.5 km along strike and 400 m of depth in old workings and drill holes. Highlighted intercepts comprise 62.0 m @ 19 gpt Ag, 0.28 gpt Au, 0.1% Pb, 2.0% Zn; 21.4 m @ 46 gpt Ag, 0.07 gpt Au, 0.8% Pb, 1.3% Zn; 1.9 m @ 113 gpt Ag, 0.04 gpt Au, 2.4% Pb, 3.2% Zn; 3.7 m @ 96 gpt Ag, 0.07 gpt Au, 1.8% Pb, 3.0% Zn; 2.1 m @ 160 gpt Ag, 0.27 gpt Au, 3.3% Pb, 3.6% Zn.
  • Sailfish Royalty Corp. filed a NI-43-101 technical report and estimate of mineral resources for the Gavilanes project in Durango.
  • Discovery Silver Corp. updated on its Cordero project in Chihuahua and informed that by the end of the first quarter 2021 had cash and cash equivalents for $94.7 M. At Cordero 75,000 m of drilling were completed in 178 holes in phase 1 drilling, providing information to be used in the bulk-tonnage preliminary economic assessment (PEA) underway. Phase 2 drilling continues with four rigs, focused on reserve definition, resource expansion and high-grade vein delineation. Bulk tonnage targeted drilling has returned up to 128.2 m @ 65 gpt Ag, 0.05 gpt Au, 1.2% Pb, 1.3% Zn; 131.6 m @ 48 gpt Ag, 0.09 gpt Au, 0.5% Pb, 1.1% Zn (including 37.1 m @ 119 gpt Ag, 0.22 gpt Au, 1.0% Pb, 1.2% Zn); 110.0 m @ 37 gpt Ag, 0.04 gpt Au, 0.8% Pb, 1.0% Zn; 85.6 m @ 53 gpt Ag, 0.05 gpt Au, 1.4% Pb, 1.7% Zn. Drilling on high-grade veins has returned up to 4.1 m @ 520 gpt Ag, 0.11 gpt Au, 3.0% Pb, 9.8% Zn in the Josefina vein; 4.0 m @ 377 gpt Ag, 0.28 gpt Au, 7.1% Pb, 3.4% Zn in the Todos Santos vein and 4.4 m @ 246 gpt Ag, 0.39 gpt Au, 6.5% Pb, 0.4% Zn on the Parcionera vein.
  • Golden Tag Resources Ltd. discovered a new zone of epithermal mineralization at the San Diego project in Durango. The new drill hole intercepted 10.0 m @ 0.55 gpt Au, 628 gpt Ag, 1.1% Pb, 3.6% Zn, 0.12% Cu, in a zone where previous drilling had returned 2.0 m @ 0.33 gpt Au, 161 gpt Ag, 0.3% Pb, 0.2% Zn, 0.04% Cu; 3.75 m @ 0.32 gpt Au, 125 gpt Ag, 1.5% Pb, 4.0% Zn, 0.12% Cu. “The hole intersected a series of epithermal breccias and quartz-carbonate veins within the Central Diorite intrusion from 73.0 to 92.70 m which are characterized by cavity filling banded quartz and carbonate veins with fluorite and associated sulfides comprised primarily of pyrite, sphalerite, galena, boulangerite, and arsenopyrite”.

ON DEALS AND CORPORATE ISSUES

  • Mexus Gold US. informed personnel from Fresnillo PLC is reviewing its Santa Elena mine in Sonora. The geologists are checking the potential for a disseminated deposit, as well as the quartz vein currently worked by Mexus.
  • Riverside Resources Inc. announced BHP and Riverside “have agreed on moving forward with a third year of generative funding for copper exploration in Sonora. The new budget is US$1.3 M for generative exploration work.

ON SOCIAL RESPONSIBILITY

  • Peñoles and Fresnillo PLC informed on their policies and programs to aid on education in a widespread communities.
  • Minera San Xavier has been declared as “Cyanide Free Site” by the International Cyanide Management Institute. Cerro San Pedro is the first mine in the world that has realized the dismantling process of the 110 m high heap that covers 102 hectares (1 square kilometer).

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-tourmaline breccia from a project in Sinaloa. Picture by Jorge Cirett.

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

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 January, 2021

By Jorge Cirett

During the 3rd week of the year (January 18th to January 24th, 2021), there were at least 41 press releases by companies working in Mexico. To note, six companies posted exploration advances on their properties, eight more released quarterly and full year results, six posted on financing or share options, nine on project development and four more on corporate issues, including two company name changes. ON MEXICO ISSUES, several Mexican projects saw significant investment in 2020. World exploration reduced its pace in 2020, with a total of US$8.33 B, of which 21% were spent in Latin America. ON EXPLORATION, in Sonora, Silver Spruce is starting exploration at Jackie; Heliostar is to commence exploration at La Lola, Oso Negro and Cumaro. In Chihuahua, Radius Gold reported drill results from Amalia; Kootenay Silver released results from drilling at Columba. In Sinaloa, Vizsla Resources updated drill results from Panuco; Brigadier Gold released results from drill holes at Picachos. ON MINING, Sierra Metals, Pan American Silver, Hecla Mining, Gatos Silver, Argonaut Gold, Fortuna Silver, Premier Gold and First Majestic presented quarterly and full year 2020 reports. ON FINANCING, Candente Gold and Impact Silver granted stock options. Mexican Gold closed a private placement for $1.4 M. VanGold Mining expanded its placement to $12.6 M. Mammoth Resources increased its financing round to $688.5 K. Sierra Metals made a clarification on its shares. ON RESOURCES AND DEVELOPMENT, Gatos Silver is to start exploration on its extensive land package this year. Discovery Metals intends to perform 65,000 m of drilling at its Cordero project. Osisko Development informed on the work to develop its San Antonio Gold project in Sonora. Sonoro Gold reported the remaining assays from its 2020 drilling campaign at Cerro Caliche. First Majestic updated on the development of the Ermitaño project, 4 km from its Santa Elena mine. GoGold Resources released the results of a PEA on the Los Ricos South project. Silver Tiger discovered a new high-grade zone on the Benjamin vein at El Tigre. Mexican Gold released the final assays from its 2020 drill program at Las Minas. Southern Silver Exploration released drill results from Cerro Las Minitas.  ON DEALS AND CORPORATE ISSUES, Candente Gold changed name to Xali Gold Corp.. Megastar Development changed name to Madoro Metals Corp.. Tocvan Ventures added Rodrigo Calles as Exploration and Corporate Development Manager. Minaurum Gold amended an agreement with an underlying royalty holder. ON SOCIAL RESPONSIBILITY, Fresnillo PLC, Industrias Peñoles and Minera San Xavier informed on actions that benefit the communities.

ON MEXICO ISSUES

  • Camimex (Camara minera de México) informed on several projects that are to have significant investments in 2021. Juanicipio in Zacatecas, US$440 M; Los Filos expansion in Guerrero, US$213 M; Fresnillo’s Pyrites Plant in Zacatecas, US$155 M; Camino Rojo in Zacatecas, US$134 M; Tahuehueto in Durango, US$32.2 M; Santana in Sonora, US$7.55 M. Other significant projects for the near future include Las Chispas in Sonora, with US$100 M and Buenavista Zinc in Sonora, US$413 M.  
  • The world exploration investment during 2020 reached  US$8.328 billions (US$8,328 millones), according to Cochilco. That is 10% less than the US$9.285 billion spent in 2019. Twenty five percent of that amount, US$2.05 billion, were invested in Latin America, of which 21% correspond to investment sunk in Mexico (behind Chile, with 22% and ahead of Perú, with 18%).

ON EXPLORATION

  • Silver Spruce Resources. is commencing the phase 1 of exploration at the Jackie project in Sonora. The program comprises prospecting, rock, soil and stream sediment sampling, initial geological mapping and collection of structural data.
  • Vizsla Resources Corp. provided results from ten more holes on the Napoleon prospect at the Panuco project in Sinaloa. Highlighted true-width (tw) intervals comprise 11.02 m @ 180 gpt Ag, 2.27 gpt Au, 0.44% Pb, 1.31% Zn (422 gpt AgEq), including 1.09 m @ 975 gpt Ag, 13.88 gpt Au, 1.63% Pb, 5.83% Zn (2,383 gpt AgEq); 3.54 m @ 181 gpt Ag, 3.75 gpt Au, 0.59% Pb, 1.52% Zn (569 gpt AgEq); 3.23 m @ 262 gpt Ag, 2.57 gpt Au, 1.26% Pb, 2.0% Zn (562 gpt AgEq).
  • Brigadier Gold Ltd. advanced drill and surface sampling results from its Picachos property in Sinaloa. Highlighted core length intervals comprise 3 m @ 9.49 gpt Au, 24 gpt Ag; 3 m @ 6.24 gpt Au, 79 gpt Ag; 3.5 m @ 7.03 gpt Au, 110 gpt Ag; 2.5 m @ 6.75 gpt Au, 44 gpt Ag. Surface rock chip-channel sampling returned 5 m @ 4.89 gpt Au, 67 gpt; 10 m @ 1.85 gpt Au, 4 gpt Ag; 1 m @ 0.1 gpt Au, 347 gpt Ag; 0.8 m @ 44.1 gpt Au, 47 gpt Ag; 1.2 m @ 5.25 gpt Au, 74 gpt Ag; 1.6 m @ 1.9 gpt Au, 98 gpt Ag. Brigadier states that results so far indicate a primary vein system over seven kilometers with robust mineralization.
  • Radius Gold Inc. reported results from its phase four diamond drill program at the Amalia Au-Ag, project in Chihuahua. Five drill holes have been completed in the current program, for a total of 2,035 m. A hole aimed within the high grade San Pedro shoot intercepted 23.1 m @ 6.8 gpt Au, 321 gpt Ag, with an estimated true width (tw) of 14.5 m, including 6.25 m (3.5 m tw) @ 18.34 gpt Au, 813 gpt Ag.
  • Kootenay Silver Inc. announced results from the final 17 core holes completed on its phase II drill program which totaled 9,114 m at its Columba project in Chihuahua. Highlighted core length results comprise 79 m @ 58 gpt Ag (including 10.1 m @ 152 gpt Ag and 3.1 m @ 325 gpt Ag); 3.78 m @ 170 gpt Ag; 27.75 m @ 40 gpt Ag; 94.06 m @ 40 gpt Ag (including 7.0 m @ 97 gpt Ag); 9.05 m @ 179 gpt Ag (including 5.35 m @ 290 gpt Ag); 1.58 m @ 525 gpt Ag; 70.5 m @ 112 gpt Ag (including 9.0 m @ 691 gpt Ag and 4.6 m @ 1,186 gpt Ag); 25 m @ 47 gpt Ag (including 7 m @ 126 gpt Ag and 2.45 m @ 208 gpt Ag.
  • Heliostar Metals Ltd. plans to start an exploration program of its Mexican projects in Sonora next month. Drilling at La Lola should commence on February, focusing on the 5 km long La Barra vein. Mapping and sampling will be completed at Oso Negro and Cumaro projects in February and March. Oso Negro is a large project with outcropping veins, while Cumaro is part of the Picacho district.

ON MINING

  • Sierra Metals Inc. reported production results for Q4 2020, including figures from its Mexican operations. At Bolívar, in Chihuahua, 383.6 K tonnes were processed at a rate of 4,384 tonnes per day (tpd) and a grade of 0.79% Cu, 14.5 gpt Ag, 0.25 gpt Au, recovering 88.21% Cu, 83.44% Ag, 64.41% Au, to produce 5.87 M Lb Cu, 149 K Oz Ag, 2,017 Oz Au. For the year total production of 24.54 M Lb Cu was recorded. At Cusi, in Chihuahua, 82.7 K tonnes were processed during the period at a rate of 945 tpd and a grade of 160.62 gpt Ag, 0.19 gpt Au, 0.28% Pb, recovering 80.37% Ag, 46.73% Au, 82.79% Pb, to produce 343 K Oz Ag, 234 Oz Au, 590 K Lb Pb. For the year, a total of 890 K Oz Ag, 619 Oz Au, 1.37 M Lb Pb were produced.
  • Consolidated Zinc Ltd. executed an agreement with Industrias Peñoles S.A. de C.V. “to reduce the transport costs/allowances of Plomosas concentrate delivered and sold to Penoles under an extended offtake agreement for the sale of 100% of the Plomosas zinc concentrate” (Plomosas, Chihuahua).
  • Capstone Mining Corp. is working on a technical report that is to include an updated mineral resource and a prefeasibility study to increase the vein rate recovery at its Cozamin mine in Zacatecas. “The $45 to $50 million project will commence this year and when in operation, targeted for Q1 2023, will allow for maximizing the extraction of high-grade ore. It will also improve environmental performance given 60% of our tailings will be sent underground and the remaining tailings will employ best practice dry-stack technology…. The 2021 budget for brownfield exploration is $5 million and $4 million for greenfield exploration in Mexico and Brazil”.
  • Pan American Silver Corp. released preliminary production results for the fourth quarter of 2020, including figures from its Mexican operations. At La Colorada, Zacatecas, 1.18 M Oz Ag were produced, while at Dolores, in Chihuahua, production reached 764 K Oz Ag. For 2021 the company aims to produce 7.16 – 7.44 M Oz Ag, 4.0 – 4.2 K Oz Au at La Colorada, and 2.73 – 2.97 M Oz Ag, 160.8 – 179.3 K Oz Au at Dolores, Chihuahua.
  • Hecla Mining Co. released preliminary production for 2020, including figures from its Mexican operations. At San Sebastian, Durango, “1.0 million ounces of silver and 7,223 ounces of gold were produced. For the fourth quarter, 0.2 million ounces of silver and 1,159 ounces of gold were produced. Mining was completed in the third quarter and milling completed in the fourth quarter of 2020. The mill operated at an average of 474 tpd when in production. The Company continues to explore this highly prospective land package and will evaluate further mining based on exploration results”.  
  • Gatos Silver Inc. achieved 2,324 tonnes per day operation of its Cerro Los Gatos mine in Chihuahua. By the end of 2020 mine development had reached just under 16,000 m of development. During 2020 Gatos Silver produced 4.2 M OZ Ag, 34.2 M Lb Zn, 27.4 M Lb Pb and 4,900 Oz Au, in Ag, Zn and Pb concentrates.
  • Argonaut Gold Inc. announced production results for the fourth quarter and full-year 2020, including figures from its Mexican operations. At El Castillo, in Durango, 12,568 Oz AuEq were produced in the quarter, 46,182 Oz AuEq in the year. At San Agustín, Durango, 18,622 Oz AuEq were produced in the quarter, 63,866 Oz AuEq in the year. At La Colorada, in Sonora, 11,294 Oz AuEq were produced in the last quarter, and 47,064 in the year.
  • Fortuna Silver Mines Inc. reported production results for the fourth quarter and full year 2020, including figures from its Mexican operations. During the quarter in San José, Oaxaca, 272.1 K tonnes were milled at a rate of 3,024 tpd and a grade of 206 gpt Ag, 1.26 gpt Au, recovering 91.42% Ag, 91.27% Au, to produce 1.65 M Oz Ag, 10,095 Oz Au. For the full year 934.4 K tonnes were milled at a rate of 2,647 tpd and a grade of 224 gpt Ag, 1.38 gpt Au, recovering 91.52% Ag, 91.34% Au, to produce 6.16 M Oz Ag, 37,805 Oz Au.
  • Premier Gold Mines Ltd. released fourth quarter and full year 2020 results, including figures from its operations in Mexico. At Mercedes, Sonora. During the last quarter 11,185 Oz Au, 65,735 Oz Ag were produced, which added up to the production of 34,955 Oz Au, 167,917 Oz Ag in the year.
  • First Majestic Silver Corp. announced Q4 and full year 2020 results from its Mexican mines. For the Full year, San Dimas, in Durango, produced 6.4 M Oz Ag, 71,598 Oz Au, or 12.67 M Oz AgEq; Santa Elena, in Sonora, produced 1.7 M Oz Ag, 28,242 Oz Au, or 4.18 M Oz Ag Eq; La Encantada, in Coahuila, produced 3.50 M Oz Ag, 241 Oz Au, or 3.53 M Oz Ag. Last quarter production results can be seen in the table below.
  • Mexus Gold US. informed it is moving 600 tonnes per day to the crushing plant at its San Elena mine in Sonora (Not to mistake for First Majestic’s Santa Elena mine, also in Sonora). Leaching continues to produce about 3 Oz per day, which is expected to double by February.

ON FINANCING

  • Candente Gold Corp. announced the granting of 3.2 M stock options to directors, senior officers, employees and consultants of the company (El Oro, Estado de Mexico).
  • Mexican Gold Mining Corp. closed its non-brokered private placement for gross proceeds of $1.4 M. The press release presented a lengthy explanation of a “related party transaction” involving Palisades Goldcorp Ltd.  (Las Minas, Veracruz).
  • VanGold Mining Corp. expanded the size of its non-brokered private placement financing previously announced, to $12.6 M in gross proceeds (El Pinguico, Guanajuato).
  • Impact Silver Corp. granted 2.11 M stock options to directors, officers and employees (Real de Zacualpan, Estado de Mexico).
  • Mammoth Resources Corp. is increasing the amount of the recently announced private placement, for total gross proceeds of $688.5 (Tenoriba, Chihuahua).
  • Sierra Metals Inc. “refers to the announcement earlier today by Arias Resource Capital Fund L.P. (“ARCF I”) regarding its distribution of an aggregate of 52,721,964 common shares of the Company from ARCF I to underlying limited partners (the “Distribution”) which was made in connection with the winding-up and dissolution of ARCF I. In view of the ongoing strategic review process announced by Sierra on January 8, 2021, the Company confirms that the strategic review process continues to have the full support of its Board of Directors, management team, Arias Resource Capital Fund II L.P. (now the Company’s largest shareholder) and Arias Resource Capital Fund II (Mexico) L.P” (Cusi and Bolivar mines, Chihuahua).

ON RESOURCES AND DEVELOPMENT

  • Gatos Silver Inc. commenced in December 2020 a 27,000 meter exploration program at its Cerro Los Gatos property in Chihuahua, to convert 3.2 M tonnes of inferred resources to measured and indicated categories, and to discover resources to the SE and NW of the deposit. Gatos Silver “intends to reactivate Los Gatos District exploration in early 2021, starting with the Esther resource located four kilometers from CLG. During the first quarter of 2021, Gatos Silver will begin a 5,400-meter exploration program on its wholly-owned Santa Valeria project”.
  • Discovery Metals Corp. intends to perform 65,000 meters of diamond drilling in 2021 at its Cordero project in Chihuahua. The aim is to produce a PEA with a resource update of the bulk tonnage mineralization and complete the initial testing of the high-grade veins with 20,0000 meters, and drill 46,000 meters more for bulk-tonnage mineralization resource upgrade and expansion, resource definition of the high-grade veins and initial scout drilling on the property.
  • Osisko Development Corp. informed its San Antonio Gold project in Sonora has an initial resource estimate of 27.6 M tonnes grading 1.18 g/t Au for 1 M Oz Au in the inferred category. Osisko is currently targeting development of a scenario for initial annual production of 50 K to 70 K Oz with additional near-term potential from reprocessing the 1.3 M tonnes stockpile located on site. The company also entered into an agreement to purchase a semiportable crushing plant for the project with capacity of 15 K tpd, with a jaw crusher, cone crushers and the related screening and material handling equipment. “The equipment is in good condition and currently stored in Nevada, USA and will be transported to the project in the next quarter”.
  • Sonoro Gold Corp. reported the remaining assays from it 2020 drilling campaign at Cerro Caliche, Sonora. “The 2021 drilling program is currently underway with approximately 50 additional RC and core holes expected to be completed by the end of the first quarter”. Core length intercepts comprise 8.4 m @ 0.72 gpt Au; 7.2 m @ 0.60 gpt Au; 6.0 m @ 0.88 gpt Au at El Colorado zone, 3.9 m @ 0.36 gpt Au and 3.9 m @ 0.23 gpt Au in one hole at the Guadalupe zone, 9.3 m @ 0.72 gpt Au; 15 m @ 0.50 gpt Au at the Cabeza Blanca zone, 16.25 m @ 0.74 gpt Au. “The latest assays further support the Company’s consideration of the viability for a bulk mining heap-leach development proposal with a conceptual throughput of up to 20,000 tonnes per day”.
  • First Majestic Silver Corp. updated on the Ermitaño project, located only 4 km east from its Santa Elena mine in Sonora. Approximately 72,270 m of drilling have been completed since 2016 to define the current indicated resource of 4.7 M Oz Ag, 311 K Oz Au at an average grade of 70 gpt Ag, 4.59 gpt Au, and an inferred resource of 7.0 M Oz Ag and 370 K Oz Au averaging 58 gpt Ag, 3.08 gpt Au. “In 2021, the Company has budgeted a total of $42.1 million to be invested at Ermitaño and expects to begin initial test block mining by mid-2021 to assess the geotechnical conditions, subject to delineation drilling results, and extract approximately 30,000 to 60,000 tonnes of material to be used for industrial metallurgical testing”.
  • GoGold Resources Inc. released results of its preliminary economic assessment (PEA) at Los Ricos South project in Jalisco. The report includes an after tax NPV (5% discount rate) of US$296 M, with an after tax IRR of 46% on an 11 year mine life to produce 69.6 M Oz AgEq; initial capital costs of $125 M and average LOM costs of $8.65 per Oz AgEq and all-sustaining costs of $11.35 per Oz AgEq. Approximately two thirds of the production would be from open pit mining, and one third from underground mining.
  • Silver Tiger Metals Inc. announced the discovery of a new zone of high-grade Au-Ag mineralization at its El Tigre project in Sonora. Core length intercepts comprise 5.5 m @ 726 gpt Ag, 0.08 gpt Au, including 3.0 m @ 1,303 gpt Ag,0.09 gpt Au; 0.5 m @ 625 gpt Ag, 0.12 gpt Au; 0.5 m @ 474 gpt Ag, 0.13 gpt Au. These intercepts are from the newly discovered Benjamín vein, 900 m to the north of the El Tigre historic workings.
  • Mexican Gold Mining Corp. released the final assay results from the 2020 drill program covering 10,221 m in 65 holes at its Las Minas project in Veracruz. Highlighted core length intercepts comprise 18 m @ 2.45 gpt Au, 0.6% Cu; 21 m @ 9.32 gpt Au, 0.33% Cu; 28.3 m @ 1.48 gpt Au, 0.36% Cu; 15 m @ 2.42 gpt Au, 0.22% Cu; 10 m @ 1.23 gpt Au, 0.61% Cu; 10 m @ 2.09 gpt Au, 0.96% Cu; 10 m @ 1.72 gpt Au, 0.54% Cu, 52 m @ 1.5 gpt Au, 1.1% Cu; 12 m @ 2.55 gpt Au, 1.18% Cu; 7.8 m @ 1.05 gpt Au, 0.51% Cu; 8.4 m @ 1.03 gpt Au, 0.22% Cu; 9 m @ 0.99 gpt Au, 0.94% Cu; 14 m @ 1.08 gpt Au, 0.96% Cu; 10 m @ 0.54 gpt Au, 0.63% Cu; 2 m @ 1.7 gpt Au, 2.33% Cu; 1.8 m @ 3.62 gpt Au, 4.63% Cu. Areas with highlighted intercepts include El Dorado, the West Dike Contact and the East Dike Contact.
  • Southern Silver Exploration Corp. reported “further intervals of gold-enriched oxide and sulphide mineralization in step out drilling as well as a significant downhole extension of earlier reported high-grade, silver enriched polymetallic sulphide mineralization” at the Mina La Bocona zone of its Cerro Las Minitas project in Durango. Highlighted true width intercepts comprise 26.5 m @ 0.37 gpt Au, 26 gpt Ag of shallow oxide mineralization and 6.1 m @ 162 gpt Ag, 0.57 gpt Au, 3.2% Pb, 1.3% Zn, that correlates with the deeper sulfide mineralization in one hole; 6.1 m @ 344 gpt Ag, 0.59 gpt Au, 5.7% Pb, 3.9% Zn; 1.4 m @ 520 gpt Ag, 0.34 gpt Au, 10.6% Pb, 9.8% Zn; 5.0 m @ 364 gpt Ag, 0.3 gpt Au, 7.0% Pb, 1.8% Zn. 1.4 m @ 1,070 gpt Ag, 0.09 gpt Au, 23.3% Pb, 3.2% Zn.

ON DEALS AND CORPORATE ISSUES

  • Candente Gold Corp. announced the name change to Xali Gold Corp. has taken place (El Oro, Estado de Mexico).
  • Tocvan Ventures Corp. announced Rodrigo Calles-Montijo has been appointed to the Board of Directors and management team as Exploration and Corporate Development Manager, Mexico (Pilar, Sonora).
  • Minaurum Gold Inc. “is pleased to announce that it has entered into an agreement with its underlying Royalty Holder (“RH”) on the Biricu Project (“Biricu”) located in the Guerrero Gold Belt (“GGB”), Mexico. Minaurum has been provided with both a limited time option to repurchase a portion of the NSR along with eliminating the outstanding Bankable Feasibility Study payment on Biricu in exchange for issuing 100,000 common shares to RH”. The Biricu project is on the southeastern projection of the Guerrero Gold Belt and is underlain by the same Cretaceous sedimentary rocks and Laramide intrusive rocks.
  • Megastar Development Corp. announced that its board of directors approved a name change to Madoro Metals Corp., subject to approval from the TSX Venture Exchange (Yautepec and Magadalena, Oaxaca).

ON SOCIAL RESPONSIBILITY

  • Industrias Peñoles informed on the donations, equipment provided and activities executed in the Torreon-Gomez Palacio area (La Laguna) to aid with the Coronavirus pandemic in 2020.
  • Fresnillo PLC provides 1,500 liters of diesel fuel monthly to the firefighters department in Caborca, Sonora.
  • Minera San Xavier has commenced the remediation of historic mining liabilities in Cerro San Pedro, San Luis Potosí. The liabilities were generated by mining by Asarco between 1930 and 1950. Since 2016 140 K tonnes of material have been moved from Patio Victoria to the installations of the mine, which is now closed.
  • Fresnillo PLC signed an agreement with the Fresnillo municipality to provide resources to aid the communities of Mexico Nuevo and Carrillo, in Zacatecas.
  • Peñoles informed its Museo de Los Metales (Metals Museum) continues with an intense program of online activities.

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 stockwork on andesite from a project in Sinaloa. Picture by Jorge Cirett.

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

By Jorge Cirett

During the 46th week of the year (November 9th to November 15th, 2020), at least 23 press releases were announced by companies working in Mexico. To note, five companies posted exploration advances on their projects and six more posted on project development. ON MEXICO ISSUES, Canadian mining investment increased during the COVID pandemic; a webinar about lithium in Mexico was held; the illegal blockade on Equinox’s Los Filos mine in Guerrero ended and the Discoveries Conference was held in Guadalajara, the first in-person gathering of the mining community since the pandemic began. ON EXPLORATION, in Sonora, Colibri released trench results from Evelyn; Tarachi Gold is mobilizing a portable diamond drill to the San Javier concession on its Tarachi property. In Sinaloa, Vizsla released assays from drilling at Panuco; Kootenay released drill results from Copalito. In Zacatecas, Advance Gold completed an IP survey.  ON MINING, Sierra Metals, Equinox and Americas Gold and Silver released third quarter 2020 results. Americas Gold and Silver updated on the Cosalá Complex situation in Sinaloa. ON FINANCING, Silver Bull and Candente Gold raised US$150 K and $200 K respectively. Aura Minerals made some clarifications on its latest public offering. Reyna Silver is now trading in USA and Germany. ON RESOURCES AND DEVELOPMENT, Mexican Gold released high grade drill results from its resource expansion program at Las Minas, Veracruz. Endeavour Silver released high-grade intercepts on Guanaceví, Durango. Discovery Metals released interesting results from drilling at its Cordero project in Chihuahua. GoGold informed on additional drill results from Los Ricos North project in Jalisco. Southern Silver Exploration informed on drill results from its Cerro Las Minitas project in Durango, some of which are high-grade. SilverCrest Metals updated on development activities at its Las Chispas project in Sonora.  ON DEALS AND CORPORATE ISSUES, Magna Gold optioned the Margarita project from Sable Resources (a property brought to Sable’s attention by Gambusino Prospector). VanGold Mining amended its option agreement to re-purchase three of four underlying royalties at its El Pinguico project in Guanajuato. ON SOCIAL RESPONSIBILITY. Fresnillo PLC promotes the creation of micro and small businesses in the Caborca region in Sonora.

ON MEXICO ISSUES

  • The COVID-19 pandemic saw investments by Canadian miners increase in Mexico, from US$30 M to US$160 – US$170 M a month during last September, according to Douglas Coleman, CEO of Mexico Mining Center. The increase in precious metal prices brought also an average increase of 30% on the valuation of companies in the Bolsa Mexicana de Valores (BMV) during the first 10 months of the current year.
  • The illegal blockade by the Carrizalillo community on Equinox’s Los Filos mine in Guerrero has been lifted, according to Jorge Zuriel de los Santos, head of the Fiscalía General del Estado de Guerrero (State Prosecutor).
  • The webinar “The truth about lithium in Mexico” was held on November 11, 2020, sponsored by Mundo Minero, the Colegio de Ingenieros de Minas, Metalurgistas y Geólogos de México (CIMMGM) and the Asociación de Ingenieros Mineros, Metalurgistas y Geólogos de México (AIMMGM).

ON EXPLORATION

  • Colibri Resource Corp. released assay results from the trenching program at its Evelyn project in Sonora. Highlighted results include 0.40 m @ 4.01 gpt Au on a quartz vein with oxidized pyrite, sericite and iron carbonate; 1.5 m @ 2.44 gpt Au in an andesite with quartz veining with oxidized pyrite and iron carbonate; Colibri has been granted a permit to complete up to 2.2 Km of trenching, and has collected 77 rock samples so far in these 1.5 m to 2.5 m deep trenches.
  • Vizsla Resources Corp. provided assay results from drilling on the Papayo and San Carlos prospects at its Panuco project in Sinaloa. “Drilling has continued to expand the known extents of mineralization at Papayo” with highlighted true width (TW) results comprising: 0.74 m @  7.96 gpt Au, 1,515 gpt Ag, 0.50% Pb, 1.21% Zn; 1.29 m @ 0.61 gpt Au, 125 gpt Ag; 0.78 m @ 2.66 gpt Au, 474 gpt Ag, 1.04% Pb, 2.80% Zn; 0.95 m @ 21.60 gpt Au, 216 gpt Ag, 1.91% Pb, 6.02% Zn; 1.49 m @ 1.0 gpt Au, 207 gpt Ag, 0.56% Pb, 1.32% Zn; 1.37 m @ 1.31 gpt Au, 168 gpt Ag; 5.61 m @ 1.05 gpt Au, 89 gpt Ag, 0.74% Pb, 1.9% Zn. “The San Carlos structure is wide lower grade bulk tonnage target with an average width of 11.5m and a range from 3.35m to 22.8m” with highlighted TW intercepts comprising 15.62 m @ 0.91 gpt Au, 110 gpt Ag (including 4.78 m @ 2.19 gpt Au, 230 gpt Ag); 19.20 m @ 0.30 gpt Au, 53 gpt Ag; 17.18 m @ 0.45 gpt Au, 67 gpt Ag (including 4.59 m @ 0.97 gpt Au, 147 gpt Ag); 22.76 m @ 0.26 gpt Au, 43 gpt Ag.
  • Advance Gold Corp. completed an induced polarization (IP) survey on its Tabasqueña project in Zacatecas. The new IP survey highlights two wide and closely spaced high chargeability anomalies, with the strongest being on the western part of the new grid. “For both targets, the associated chargeability anomaly is deeply seated (> 250 to 300m) while their origin is linked to two distinct wide mineralized systems. The western anomaly appears to remain open laterally to the north and south within the property limits”.
  • Tarachi Gold Corp. is mobilizing a man portable diamond drill rig to commence drill testing the high-grade gold bearing structures on the San Javier concession, part of its Tarachi project in Sonora. The drill program will focus on a NW trending shear structure where previous drill holes intercepted 5.0 m @ 34.5 gpt Au and 3.0 m @ 24.3 gpt Au. Mineralization is hosted in andesitic volcanic rocks, flanked by an intrusive rock, and the shear zone at San Javier remains open along strike and to depth, with the possibility of an extension under cover.
  • Kootenay Silver Inc. released results from the last seven holes on its 4,153 m drilling program at Copalito, in Sinaloa.  Highlighted intercepts comprise 9.05 m @ 2.09 gpt au, 124 gpt Ag, 0.8% Pb+Zn (including 2.25 m @ 6.65 gpt Au, 335 gpt Ag, 2.6% Pb+Zn, including 0.51 m @ 16.95 gpt Au, 369 gpt Ag, 3.74% Pb+Zn); 27.4 m @ 60 gpt Ag, 0.28 gpt Au, 0.4% Pb+Zn; 10 m @ 128 gpt Ag, 0.65 gpt Au, 1.13% Pb+Zn (including 2.25 m @ 484 gpt Ag, 2.18 gpt Au, 2.86% Pb+Zn).

ON MINING

  • Sierra Metals Inc. Released consolidated third quarter results for 2020, with some figures from its Mexican operations. The Bolivar Mine in Chihuahua processed 410.5 K tonnes in the quarter, a record representing a 24% increase over Q3 2019, at 4,691 tpd, and in track to reach the targeted 5,000 tpd during Q4 2020. The Cusi mine, also in Chihuahua, produced a record 304 K Oz Ag, with an ore throughput of 1,074 tpd.
  • Equinox gold Corp. reported its third quarter 2020 financial and operating results, without detailing figures from its Mexican operations. At Los Filos, the Guadalupe open pit and Bermejal underground proceeded for July and August, but were suspended by an illegal blockade by the community on September 3rd. “Optimization study for new carbon-in-leach plant, heap leach expansion, updated mine planning and a Mineral Reserve and Mineral Resource update targeted for completion in early 2021”.
  • Americas Gold and Silver Corp. reported financial and operational results for the third quarter 2020, including an update on its Mexican operations. At Cosalá, in Sinaloa “In August 2020, the Company announced that the illegal blockade had been resolved to permit some Company personnel the opportunity to re‐enter the mine operations.    This access has not been maintained.  With the re‐opening of Mexican government offices in August, the Company’s employees were expected to vote in September 2020 for new union representation and did so on September 17.  In advance of the vote, a number of irregularities came to light, which indicated that there could not be a fully democratic vote with freedom of association. As a result, the Company does not believe there are conditions currently present to invest the required capital to re‐start the Cosalá Operations.  The Company continues to work with all legitimate stakeholders and remains hopeful that a resolution, consistent with the rule of law and featuring an election free from threats and intimidation, can be achieved so that operations can re‐commence in the near term”. The company also finalized the option agreement with Hochschild to acquire 100% of the San Felipe project in Sonora.

ON FINANCING

  • Aura Minerals Corp. made some clarifications regarding the secondary public offering of Brazilian depositary receipts issued by Itaú Unibanco S.A. as depositary. “The total gross proceeds of the Secondary Offering to the Selling Shareholders are R$87,300,000.00, of which an aggregate of R$19,400,000 is in respect of the Shares offered, severally, by the ARC Funds and R$67,900,000 is in respect of the Shares offered by Ruffer. The Company will not receive any proceeds from the Secondary Offering” (Aranzazú, Zacatecas).
  • Silver Bull Resources Inc. completed the second and final tranche of the previously announced private placement, for gross proceeds of US$150 K, and aggregate gross proceeds of US$1.7 M (Sierra Mojada, Coahuila).
  • Reyna Silver Corp. announced its common shares have been approved for listing on the OTCQB Market Exchange in the United States and the Frankfurt Stock Exchange in Germany.
  • Candente Gold Corp. advised that the previously announced non-brokered private placement has been fully subscribed, for gross profits of $200K (El Oro, Estado de Mexico).

ON RESOURCES AND DEVELOPMENT

  • Mexican Gold Mining Corp.  released further assay results from the 2020 drilling program at its Las Minas project in Veracruz. Most of the 52 holes drilled so far have been targeting potential extensions to the El dorado resource, which remains open in several directions. Highlighted true width (TW) intercepts comprise 4.6 m @ 1.41 gpt Au, 0.55% Cu; 15.3 m @ 1.21 gpt Au, 1.1% Cu; 3.2 m @ 3.74 gpt Au, 3.76% Cu; 8.5 m @ 4.86 gpt Au, 1.17% Cu; 17 m @ 1.2 gpt Au, 0.85% Cu; 11.6 m @ 1.56 gpt Au, 1.03% Cu; 11.6 m @ 4.38 gpt Au, 1.84% Cu; 28.5 m @ 2.8 gpt Au, 1.12% Cu; 8.0 m @ 1.9 gpt Au, 0.36% Cu; 7.4 m @ 3.46 gpt Au, 5.08% Cu; 5.3 m @ 0.4 gpt Au, 0.83% Cu.
  • Endeavour Silver Corp. continues to intersect high-grade mineralization in the Santa Cruz vein on the El Curso property of the Guanaceví mine in Durango. Highlighted TW intersections on eleven holes comprise 3.2 m @ 2,307 gpt Ag, 3.15 gpt Au (2,559 gpt AgEq); 3.1 m @ 1,409 gpt Ag, 3.13 gpt Au (1,659 gpt AgEq) and 11.5 m @ 381 gpt Ag, 0.5 gpt Au.
  • Discovery Metals Corp. released results from seven diamond drill holes targeting bulk-tonnage mineralization in the South Corridor at its Cordero project in Chihuahua. Some of the highlighted results comprise 71.2 m @ 18 gpt Ag, 0.06 gpt Au, 0.2% Pb, 0.7% Zn; 139.1 m @ 47 gpt Ag, 0.07 gpt Au, 0.6% Pb, 1.6% Zn (138 gpt AgEq); 26.6 m @ 56 gpt Ag, 0.09 gpt Au, 0.4% Pb, 0.7% Zn; 19.4 m @ 41 gpt Ag, 0.06 gpt Au, 0.5% Pb, 1.2% Zn; 29.6 m @ 52 gpt Ag, 0.07 gpt Au, 0.8% Pb, 0.8% Zn; 92.1 m @ 27 gpt Ag, 0.05 gpt Au, 0.2% Pb, 0.4% Zn; 32.4 m@ 72 gpt Ag, 0.07 gpt Au, 0.3% Pb, 0.1% Zn; 38.4 m @ 36 gpt Ag, 0.04 gpt Au, 0.6% Pb, 0.7% Zn; 33.9 m @ 30 gpt Ag, 0.07 gpt Au, 0.5% Pb, 0.7% Zn; 62.2 m @ 38 gpt Ag, 0.07 gpt Au, 0.4% Pb, 0.7% Zn; 57.1 m @ 18 gpt Ag, 0.01 gpt Au, 0.2% Pb, 1.0% Zn. Assays from 27 holes are pending and four rigs are operating at the site.
  • GoGold Resources Inc. released additional drill results from the La Trini deposit at its Los Ricos North project in Jalisco. Highlighted core length intercepts comprise 25.9 m @ 0.34 gpt Au, 52 gpt Ag (including 4.7 m @ 0.81 gpt Au, 124 gpt Ag); 2.4 m @ 0.05 gpt Au, 300 gpt Ag; 18.7 m @ 0.58 gpt Au 46 gpt Ag; 18.2 m @ 0.11 gpt Au, 48 gpt Ag; 15.2 m @ 0.71 gpt Au, 71 gpt Ag (including 2.0 m @ 3.55 gpt Au, 284 gpt Ag and 1.3 m @ 4.20 gpt Au, 733 gpt Ag).
  • Southern Silver Exploration Corp. reported initial assay results from the recently started 10,000 m core drilling program at Cerro Las Minitas, Durango. Highlighted true width results from holes in the South Skarn target comprise 4.0 m @ 109 gpt Ag, 0.14 gpt Au, 0.02% Cu, 1.8% Pb, 2.1% Zn (including 0.9 m @ 412 gpt Ag, 0.14 gpt Au, 0.06% Cu, 7.8% Pb, 9.2% Zn); 0.8 m @ 132 gpt Ag, 0.12 gpt Au, 0.02% Cu, 2.8% Pb, 2.0% Zn; 1.1 m @ 54 gpt Ag, 2.83 gpt Au, 0.01% Cu, 3.6% Pb, 0.4% Zn; 3.2 m @ 99 gpt Ag, 0.27 gpt Au, 0.01% Cu, 0.7% Pb, 0.6% Zn; 6.7 m @ 625 gpt Ag, 0.11 gpt Au, 0.03% Cu, 11.8% Pb, 7.5% Zn; 1.2 m @ 112 gpt Ag, 0.07 gpt Au, 2.2% Pb, 2.1% Zn.
  • SilverCrest Metals Inc. provided an update on activities for 2020. During the first nine months of the year the company has drilled 146,000 m of in-fill and expansion drilling at Las Chispas project in Sonora. Furthermore, 4.1 km of underground decline and lateral drifting, stockpiling an accumulated 47 K tonnes @ 1,130 gpt AgEq (7.21 gpt Au, 590 gpt Ag). “Las Chispas site activities continued with the building of the administration and warehouse facilities, phase 1 of the temporary quarantined COVID-19 camp, communication system, and water pumping stations”. Since inception of the project, 461,000 m have been drilled in 1,712 holes. As October 31, 2020, SilverCrest has cash and cash equivalents of $184 M (US$138.2 M).

ON DEALS AND CORPORATE ISSUES

  • Magna Gold Corp. entered into a definitive option acquisition agreement with Sable Resources Ltd. To acquire Sable’s option to acquire 100% interest in the 125.6 ha Margarita silver property in Chihuahua; the property lies 15 Km northwest on strike with the recently commissioned Sunshine Silver Corp’s Los Gatos mine. Magna is to acquire the option by paying CAD$1.5 M cash, plus additional CAD$800 K VAT and CAD$3.5 M in common shares of Magna. The purchaser will exercise the option to acquire the property by payment of CAD$500 K in cash, plus $368 K in VAT to the titleholders of the concessions and CAD$1.8 M in Magna shares. Sable drilled 35 holes for a total of 5,245 m, with intercepts like: 4.25 m @ 430 gpt Ag, 0.2% Pb, 0.7% Zn; 12.4 m @ 446 gpt Ag, 0.7% Pb, 1.0% Zn; 14.05 m @ 306 gpt Ag, 0.7% Pb, 1.9% Zn; 11.3 m @ 229 gpt Ag, 1.0% Pb, 0.3% Zn; 33.3 m @ 283 gpt Ag, 0.3% Pb, 0.8% Zn (including 9.9 m @ 579 gpt Ag, 0.8% Pb, 1.7% Zn); 20.6 m @ 83 gpt Ag, 0.1% Pb, 0.3% Zn (including 5.1 m @ 198 gpt Ag, 0.2% Pb, 0.3% Zn); 48.65 m @ 102 gpt Ag, 0.1% Pb, 0.4% Zn; 37.35 m @ 117 gpt Ag, 0.17 gpt Au, 0.2% Pb, 0.7% Zn (including 5.5 m @ 400 gpt Ag, 1.07 gpt Au, 1.1% Pb, 0.4% Zn).
  • VanGold Mining Corp. amended its option agreement to re-purchase three of the four underlying royalties on its Pinguico project, Guanajuato. Under the new terms the option is exercisable by making payments to EMBSA (Exploraciones Mineras del Bajío, S.A. de C.V.) of $200 K cash and 3.75 M shares before November 20, 2020; $325 K in cash before February 22, 2021; $525 K in cash before February 22, 2022 and $625 K in cash before February 22, 2023. After these payments are made, the only NSR on the property will cover the above ground and below ground stockpiles. 

ON SOCIAL RESPONSIBILITY

  • Fresnillo PLC promotes the creation of micro and small businesses by means of its “Emprende en Línea” (Online Entrepreneurship) program, to develop administrative and managerial capabilities to consolidate businesses. For more than two decades Minera Penmont has contributed to the growth of the Caborca region through the implementation of social programs.

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: Base metal veinlet in core from Cerro San Pedro, San Luis Potosí. Picture by Jorge Cirett.

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

By Jorge Cirett

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

ON MEXICO ISSUES

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

ON EXPLORATION

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

ON MINING

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

ON FINANCING

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

ON RESOURCES AND DEVELOPMENT

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

ON DEALS AND CORPORATE ISSUES

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

ON SOCIAL RESPONSIBILITY

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

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

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

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

By Jorge Cirett

During the 40th week of the year (September 28th to October 4th, 2020), at least 40 press releases were announced by companies working in Mexico. To note, five companies posted exploration advances on their projects, ten companies posted news related to financing or share structure, and seven on their projects development. ON MEXICO ISSUES, the Mining Fund is gone. A new special force was created to aid protect mining companies from criminal gangs activities. Only nine percent of Mexico is under a current mining concession. The CTM asks for the continuation of the Mining Fund. Some 150 junior exploration companies have left Mexico. The Mining-Metallurgic production index grew by 6.2% in July. Sixteen municipalities in Hidalgo are to receive $48 M pesos from the Mining Fund. ON EXPLORATION, in Sonora, Colibri Resources completed a mag survey on Evelyn. Tocvan Ventures identified a pipe like structure at its Pilar project. In Sinaloa, Brigadier Gold commenced drilling at Picachos. In Durango, Mithril Resources released drilling results from Copalquin. In Oaxaca, Megastar Development team is back in the field at Yautepec and Magdalena.  ON MINING, No relevant news. ON FINANCING, One World Lithium ($1.5 M), Plymouth Realty Capital ($10 M), Barksdale ($6.325 M), Santacruz Silver (CDN$9.5 M), Prismo Metals ($575 K), Endeavour Silver (US$60 M) released news regarding financing rounds. Candelaria Mining settled a $1.087 M debt with shares. Silver One granted options to its directors, officers, employees and consultants. Silver Dollar started trading at the OTCQB. ON RESOURCES AND DEVELOPMENT, GR Silver released underground channel sampling results. Consolidated Zinc presented the latest resource estimate at its Plomosas mine in Chihuahua, and announced the refurbishment of the processing plant at the site. Capitan Mining commenced resource expansion drilling at El Capitan, Durango. Azucar Minerals presented the initial resource estimate for the El Norte Zone of its El Cobre project in Veracruz. GoGold Resources released drilling results from its Los Ricos North project in Jalisco. Bacanora Minerals is focusing in engineering while the financing package is complete for its Sonora Lithium project. Golden Minerals released final results of its resource definition drilling program at the Rodeo project, Durango. ON DEALS AND CORPORATE ISSUES, Candente Gold signed the definitive agreement on the acquisition of the San Dieguito de Arriba plant in Nayarit. Silver One is selling its Mexican properties to Plymouth Realty Capital. Dyna Resources is trying to enforce in USA a favorable Mexican court ruling. Silver Spruce has recurred to force majeure clause for lack of access to its Pino de Plata property in Chihuahua. Reyna Silver entered into an option agreement to acquire the Reyna project in Chihuahua. ON SOCIAL RESPONSIBILITY. Fresnillo PLC, Minera Autlan, Minera Saucito and Industrias Peñoles informed on sustainability, health, safety, environment, social and governance programs.

ON MEXICO ISSUES

  • The Mining Fund is gone for good from the purpose it was created for: aiding the development of mining communities. Mining States and municipalities wonder what the destiny of more than $1,500 M pesos actually in the Fund. The actual federal government re-directed the use of the Mining Fund, with 85% going to the Education Secretariat, 5% to the Economy Secretary and 10% to federal government infrastructure programs.
  • A new special force for overseeing mining operations was formed by the federal government. The first 118 guards graduated from a special training course, and will be equipped with assault weapons. Heists by organized crime have plagued the industry in the last few years, with robberies of bullion in mining operations across several states.
  • The Economy Secretariat informed mining concessions cover only 9% of Mexico. Graciela Marquez, Secretary of Economy noted that 24 thousand current mining concessions cover 17 M hectares. The Director de Minas (reporting to Gabriela Marquez) pointed that they are following the president view of not granting more mining concessions, which is problem that will catch up in 10 years’ time with fewer new deposits to mine due to the lack of exploration.
  • The Confederacion de Trabajadores de Mexico (one of the largest union organizations in Mexico, best known as “CTM”) asked the federal government and the Deputies Chamber for the no disappearance of the Mining Fund.
  • Fernando Alanís Ortega from Camimex pointed out some 150 junior exploration companies have left Mexico due to the complex operative environment. Several companies have diversified their operations this year, with acquisitions in Canada and USA. The last company to divest its Mexican portfolio is Silver One, to focus on a project in Nevada.
  • The Mexican index of Mining-Metallurgic production increased by 6.2% in July, compared with the same month of 2019 and by 5.1% from July 2020 to the previous month.
  • Sixteen Municipalities in Hidalgo are to receive $48 M pesos from the Fund for Development of Mining Production Zones.  

ON EXPLORATION

  • Brigadier Gold Ltd. commenced its maiden drill program at the 3,954 ha Picachos property in Sinaloa. The drilling of 5,000 m in 40 holes will test the San Agustín mine (underground rock chip sample of 1.2 m @ 73.4 gpt Au), and the the Mochomos (underground rock chip sample of 0.5 m @ 18.5 gpt Au, 570 gpt Ag), Tejones (underground rock chip sample of 1.0 m @ 28.6 gpt Au, 114 gpt Ag) and Fermin (underground rock chip sample of 1.0 m @ 0.3 gpt Au, 268 gpt Ag) veins. “the Cocolmeca Vein system is comprised of several sub-parallel veins over a 1.5 kilometre (km) wide zone ……  San Agustín is the best understood of these veins, mainly because it has been historically exposed underground by approximately 670 line-metres of tunnels, stopes and shafts”.
  • Colibri Resource Corp. received results from a high-resolution magnetic survey at its Evelyin property in Sonora. The interpretation of the magnetic data allowed the identification of three families of lineaments that are to aid in the definition and prioritization of targets.
  • Tocvan Ventures Corp. informed on new interpretations on all the information gathered on its Pilar project in Sonora. With the aid of geophysical, geochemical and structural specialists a conclusion was reached that a sub-vertical pipe-like feature may represent a breccia feeder pipe related to epithermal mineralization. The pipe is close to 100 m in diameter, oval shaped and dipping 70 degrees to the SSW.
  • Mithril Resources Ltd. Released results from nine more holes at La Soledad in the Copalquin project, Durango. Drilling confirmed the bonanza grades of the La Soledad vein and intercepted additional veins at depth and along strike. Highlighted results comprise 3.8 m @ 2.58 gpt Au, 143 gpt Ag; 0.5 m @ 6.78 gpt Au, 10 gpt Ag, an open working for 2.5 m and then 1.5 m @ 6.65 gpt Au, 18 gpt Ag; 2.82 m @ 2.37 gpt Au, 22 gpt Ag; 7.5 m @ 6.74 gpt Au, 158 gpt Ag.
  • Megastar Development Corp. reported its exploration team is back at the Yautepec and Magdalena projects in Oaxaca. So far, they have found “highly prospective ferruginous (iron-rich) carbonate sinters and fault-controlled quartz veining and breccias in discontinuous erosional windows under post-mineral volcanic rocks over areas of several hundreds of meters”. These findings correlate well with the envisaged uppermost levels of an epithermal system, the concept exploration model used at the site.

ON MINING

  • No Relevant News.

ON FINANCING

  • One World Lithium Inc. announced a non-brokered private placement for gross proceeds of up to $1.5 M (Salar del Diablo, Baja California).
  •  Candelaria Mining Corp. closed the previously announced shares for debt transaction in settlement of $1.087 M of indebtedness (Pinos, Zacatecas).
  • Plymouth Realty Capital Corp. will complete a $10 M private placement funding (Peñasco Quemado, Sonora; La Frazada, Nayarit; Pluton, Durango).
  • Silver One Resources Inc. granted 2.575 M stock options to its directors, officers, employees and consultants (Peñasco Quemado, Sonora).
  • Fresnillo PLC. Is extended the expiration time on its tender offer to purchase for cash any and all of its outstanding US$800,000,000 principal amount of 5.5% Notes due 2023, to September 29. 2020 (La Herradura, Sonora).
  • Silver Dollar Resources Inc. started trading on September 30, 2020, in the United States on the OTCQB Venture Market (La Joya, Durango).
  • Barksdale Resources Corp. closed the final tranche of the company’s non-brokered private placement that raised $6.325 M (San Javier, Sonora).
  • Santacruz Silver Mining Ltd. Increased the size of its previously announced non-brokered private placement offering to CDN$9.5 M (Rosario, San Luis Potosi).
  • Prismo Metals Inc. completed its initial public offering (IPO) for gross proceeds of $575 K (Palos Verdes, Sinaloa).
  • Endeavour Silver Corp. entered into a sales agreement with BMO Capital Markets as the lead agent upon which the company can sell a number of common shares than can amount up to US$60 M (El Compas, Zacatecas; Terronera, Jalisco).

ON RESOURCES AND DEVELOPMENT

  • GR Silver Mining Ltd.  announced favorable results from underground channel sampling on the lower level of the Plomosas mine in Sinaloa. Disseminated and massive mineralization is constituted by veins, stockworks and sulfide stringers that include chalcopyrite, sphalerite and galena in a brecciated tuff. Highlighted channel intervals comprise 2.6 m @ 504 gpt Ag, 14.6 gpt Au, 8.9% Pb, 6.6% Zn, 0.3% Cu; 15.7 m @ 90 gpt Ag, 2.5 gpt Au, 0.5% Pb, 1.3% Zn, 0.8% Cu: 5.4 m @ 147 gpt Ag, 10.0 gpt Au, 0.6% Pb, 3.3% Zn, 1.2% Cu; 7.8 m @ 50 gpt Ag, 2.9 gpt Au, 2.2% Pb, 7.3% Zn, 0.2% Cu; 6.0 m @ 66 gpt Ag, 6.2 gpt Au, 1.4% Pb, 3.9% Zn, 0.9% Cu.
  • Consolidated Zinc Ltd. presented a mineral resource estimate for the month of April 2020 for its Plomosas mine in Chihuahua. The indicated and inferred mineral resources comprise 964 K tonnes @ 13.2% Zn, 3.5% Pb, 20.6 gpt Ag that contain 127 K tonnes of zinc, 34 K tonnes of lead and 639 K Oz silver. The company is refurbishing the Plomosas beneficiation plant to process the ore at the site, for an estimated cost of US$1.35 M. The plant will start processing 3,000 tonnes per day (tpd), with the possibility of an expansion to 6,000 tpd.
  • Capitan Mining Inc. has commenced drilling at the Capitan project in Durango. The first phase comprises 6,000 m of reverse circulation drilling focused on step-out holes for resource expansion.
  • Azucar Minerals Ltd. completed its initial resource estimate for the Norte zone at El cobre project in Veracruz. “Copper and gold mineralization at the Norte Zone is associated with a multiphase variably potassic-phyllic altered porphyritic diorite intrusive complex that is cut by late mafic and intermediate dykes and post mineral feldspar porphyry. The Norte Zone is approximately 0.6 km x 0.4 km along an E-W strike. Sulphide mineralization, which extends up to 900 metres depth, consists of disseminated and vein-hosted chalcopyrite and trace bornite (Cu mineralization) exposed in surface outcrops and intersected in drill core”. The base case scenario considers indicated resources of 47.2 M tonnes @ 0.49 gpt Au, 0.21% Cu, 1.4 gpt Ag containing 1.17 M Oz AuEq and inferred resources of 26.9 M tonnes @ 0.42 gpt Au, 0.18% Cu, 1.3 gpt Ag, containing 1.35 M Oz AuEq.
  • GoGold Resources Inc. released drilling results from the La Trini deposit on the Los Ricos North project in Jalisco. Some of the highlighted results from 12 holes released comprise 22.5 m @ 1.37 gpt Au, 158 gpt Ag; 22.5 m @ 0.20 gpt Au, 48 gpt Ag; 44.5 m @ 0.84 gpt Au, 63 gpt Ag; 38.4 m @ 0.40 gpt Au, 30 gpt Ag; 29.6 m @ 0.42 gpt Au, 88 gpt Ag; 27 m @ 0.12 gpt Au, 48 gpt Ag; 7.9 m @ 0.86 gpt Au, 64 gpt Ag; 19.5 m @ 0.18 gpt Au, 83 gpt Ag; 21.8 m @ 2.73 gpt Au, 130 gpt Ag (including 5.6 m @ 9.40 gpt Au, 365 gpt Ag).
  • Bacanora Lithium PLC. Informed the company has a strong cash balance of US$44.4 M as of June 30, 2020, and retains a senior debt facility of US$150 M. At the Sonora Lithium project in Sonora, work is focused on finalizing engineering so that construction may commence after the financing package is completed.
  • Golden Minerals Co. released final assays from its resource definition program at the Rodeo project in Durango. Some of the true width (tw) highlighted intercepts comprise 15.8 m @ 2.05 gpt Au, 16 gpt Ag; 15.3 m @ 1.09 gpt Au, 4 gpt Ag; 25.5 m @ 2.49 gpt Au, 6 gpt Ag; 25.8 m @ 1.22 gpt Au, 5 gpt Ag; 15.6 m @ 0.78 gpt Au, 3 gpt Ag; 15.0 m @ 0.74 gpt Au, 3 gpt Ag; 7.7 m @ 0.98 gpt Au, 3 gpt Ag; 34 m @ 1.63 gpt Au, 6 gpt Ag; 49.5 m @ 1.77 gpt Au, 22 gpt Ag; 9.6 m @ 0.97 gpt Au, 2 gpt Ag; 25.8 m @ 3.10 gpt Au, 10 gpt Ag; 24.5 m @ 1.32 gpt Au, 5 gpt Ag; 28.0 m @ 1.96 gpt Au, 8 gpt Ag; 17.5 m @ 1.36 gpt Au, 5 gpt Ag. The resource the company is trying to improve was defined in 2017 at 0.4 M tonnes @ 3.3 gpt Au, 11 gpt Ag, containing 46 K Oz Au, 200 K Oz Ag.

ON DEALS AND CORPORATE ISSUES

  • Candente Gold Corp. signed the definitive agreement with Magellan Acquisition Corp. to earn up to 100% interest in the San Dieguito de Arriba beneficiation plant and the rights on the El Dorado property, both in Nayarit.
  • Silver One Resources Inc. entered into a letter of intent (LOI) with Plymouth Realty Capital Corp. to sell all its Mexican silver properties. In consideration for the properties Plymouth is to pay $1 M in cash and $5 M in shares. Plymouth Realty Capital will also change its name to Silverton Metals Corp. (Peñasco Quemado, Sonora; La Frazada, Nayarit; Pluton, Durango).
  • Dyna Resource Inc. announced the filing on August 28, 2020 in Dallas county, Texas, a petition for recognition of the USD$48 M foreign judgement against Goldgroup Resources Inc. in order to recognize in USA the judgment obtained in Mexico against Goldgroup Resources Inc. (the judgment relates to a legal challenge for the ownership of the San José de Gracia project in Sinaloa).
  • Silver Spruce Resources Inc. has “retained Mexico-based legal counsel to lead the discussions with representatives of the surface landowners of Pino de Plata in order to re-negotiate access rights to the ranch that covers the Pino de Plata project area”. The company’s purchase rights contract is now under a force majeure clause until access rights are granted by surface owners to continue exploration.
  • Reyna Silver Corp. announced the acquisition of the 300 ha La Reyna project in Chihuahua. The property is in the Cusihuiriachi (Cusi) silver district of low sulfidation epithermal mineralization. “La Reyna proper is a nearly north-south trending structure traceable as vein and altered outcrops for 4 km across the property. Two historic (1890s) shafts (La Reyna and Princesa) that extend to 133-150m depths exploited high-grade silver-rich mineralized shoots 2-5 m wide in the late 1800s”. The deal involves US$1.3 M in staged cash payments over four years and a 2.5% NSR. The payment on singing was US$30K that is to be followed by US$45 K in 6 months, US$75 K in 12 months, US$75 K in 18 months, US$120 K in 24 months, US$120 K in 30 months, US$150 K in 36 months and US$685 K in 48 months.

ON SOCIAL RESPONSIBILITY

  • Fortuna Silver Mines (San José mine in Oaxaca) signed an agreement with the Oaxaca Health Secretary and the San José del Progreso Municipality to help the community with the pandemic health emergency.
  • Minera Autlán donated 4,000 tree saplings to the Teziutlan Municipality in Puebla.
  • Minera Saucito informed on actions related to the fight against the pandemic in the Fresnillo Municipality in Zacatecas.
  • Industrias Peñoles celebrated 13 years of the inauguration of the Museum of Metals.
  • Industrias Peñoles informed in measures the company implements to reduce the use of water, and its treatment afterwards.
  • Fresnillo PLC is to distribute 20,000 face masks in Zacatecas city.

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 mineralized porphyry from Cerro San Pedro, San Luis Potosí. Picture by Jorge Cirett.

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

Stibnite in a fine grained quartz vein.

By Miguel A Heredia

During the thirty seven week of the year (September 7th to September 13th, 2020), at least 24 press releases were announced by companies working in Mexico and 13 news published by the media, with ten disclosing deals and corporate issues, seven discussing social issues, six commenting on Mexican issues, five informing on exploration results, five announcing financial rounds, two reporting on resources and developments of their mine operations, and two communicating production and financial results.  ON MEXICO ISSUES, Deputy Mario Delgado from MORENA party presented a reform to eliminate trust funds, including the Mining Fund. Mexico intends to lead lithium production. Federal Deputy Monica Almeida of the PRD party stated that the disappearance of the undersecretary of Mining must be re-considered. Mining companies operating in Mexico have cut their capital investment budgets by 20% on average in 2020 due to disruptions caused by COVID-19. The company Roca Fosforica Mexicana (Rofomex) seeks to expand its mining area in Baja California Sur.  ON EXPLORATION, In Sonora, Colibri received an exploration permit to begin a trench program at its Evelyn project, and Silver Tiger provided an exploration update for its El Tigre project. In Sinaloa, Brigadier provided an exploration update on its Picachos project, and Oroco initiated a 3D IP survey at its Santo Tomas project. In Durango, Canasil released results from 2 drill holes collared recently at its Nora project. ON MINING, Excellon provided an operation update on its La Platosa mine in Durango. Consolidated Zinc reported H1, 2020 production and financial results from its Plomosas mine in Chihuahua.  ON FINANCING, Mag Silver completed its previously announced at the market equity program for gross proceeds of USD $50M (Juanicipio property, Zacatecas). Comet Resources announced that it will be conducting a placement to raise gross proceeds of $2M (Santa Teresa project, Baja California). Excellon completed its share consolidation (La Platosa mine, Durango). Monarca completed its previously announced shares for debt transaction to settle an aggregate of $301,324 owing to certain officers, directors and services providers of the company. Sable closed its previously announced private placement for total gross proceeds of approximately $9.9M (Margarita and Vinata project, Chihuahua). ON RESOURCES AND DEVELOPMENT, Bacanora provided an operational update of its Sonora Lithium project in Sonora. Capstone provided updated proven and probable mineral reserves and positive results of an updated technical report for its Cozamin mine in Zacatecas.    ON DEALS AND CORPORATE ISSUES, Excellon announced that it has applied to list on the New York Stock Exchange (NYSE) American (La Platosa mine, Durango).  Mithril announced that its CEO was appointed as Managing Director (Copalquin project, Durango). Sonoro announced results of its annual general meeting of shareholders and changed its name from Sonoro Metals Corp. to Sonoro Gold Corp (Cerro Caliche project, Sonora). Alien entered into an exclusivity agreement with Capstone in respect of the potential farm out of an interest in its Donovan 2 Copper-Gold project in Zacatecas. Almaden announced the decision of the Second District Court in Puebla in respect of its environmental permit application for its Ixtaca project in Puebla.  Argonaut entered into a definitive agreement for the sale of its Ana Paula property in Guerrero.  Consolidated Zinc secured an agreement with Industrias Peñoles to sale the 100% of the Zn concentrate produced by the company in 2021. Newmont appointed Susan N Story to its board of directors and achieves gender parity for non-executive directors (Peñasquito mine, Zacatecas).  Southern Silver presented results from its annual general meeting of shareholders (Cerro Las Minitas project, Durango). ON SOCIAL RESPONSIBILITY, First Majestic invested USD $3.8M in local communities where it operates.  Fresnillo plc, continued donating personal equipment to prevent infections by COVID-19 in Caborca, Sonora. The Municipal President of Fresnillo, Zacatecas delivered the first stage of the rainwater collector with an investment of MXP $6M from the Mining Fund. The Municipal President of Cuencame, Durango announced that MXP $16.6M from the Mining Fund were invested in the construction of domes and paved streets, installation of electrical network, potable water and drainage in several communities in Cuencame, Durango. Grupo Mexico offered more than 130 weekly workshops via social networks generating content for the community. Minera Media Luna (Torex) improved public spaces in the Atzcala community in Guerrero. The Peñoles nursery garden continues donating trees to people seeking to expand the green folder in their home, plaza or a larger space for the population, and continue supporting the community with other social activities.

ON MEXICO ISSUES

  • Deputy Mario Delgado from MORENA party presented a reform to eliminate trust funds, including the Mining Fund. A period is proposed for the Ministry of Finance and Public Credit and the Welfare Bank (Banco del Bienestar, created by MORENA) to proceed to the extinction of the Public Administration and Payment Trust called “Fund for the Development of Mining Production Zones” (Mining Fund), in accordance with provided for in the Federal Budget and Fiscal Responsibility Law. Obviously, this is not the reason and the goal the Mining Fund was created for.
  • Mexico intends to lead lithium production since lithium is required to make rechargeable batteries, and the demand for this mineral has multiplied in the last decade, with the rise of laptops and smartphones. Annual sales of batteries made from lithium-ion batteries are projected to reach a value of $100B in 2029 and about $116B in 2030, according to Bloomberg New Energy Finance. While Mexico’s reserves are not yet certified, the size of the deposit found in Sonora (Sonora Lithium project owned by Bacanora)- which, according to Mining Technology, is the largest deposit under development in the world – placed the country on the radar of global lithium investors. The project will be the first to produce significant volumes of lithium in Mexico. Initially, production is estimated to approach 17,500 tonnes per year of lithium carbonate, which will double to 35,000 tonnes starting in 2026, after a projected expansion in its investment of USD $380M.
  • Monica Almeida, Federal Deputy of the PRD party, stated that the disappearance of the undersecretary of Mining must be re-considered and warned that neither the economic adjustments nor the so-called “republican austerity” should be a pretext for the disappearance of an undersecretary that served a sector of utmost importance for Mexico, since at the world is within the top 10 in the production of 19 minerals. This measure was not shared by the members of the country’s mining sector, among which are the Mexican Mining Chamber (CAMIMEX), the Association of Mining Engineers, Metallurgists and Geologists of Mexico (AIMMGM), the Mining Task Force of the Canadian Chamber of Commerce in Mexico (CANCHAM), the Mining Clusters of Chihuahua, Guerrero, Sinaloa, Sonora and Zacatecas, the College of Mining Engineers, Metallurgists and Geologists of Mexico (CIMMGM) and the organization Mujeres en la Mineria – WIM Mexico; who have openly expressed their disagreement with the measure. It should be remembered that the mining-metallurgical sector in Mexico contributes 2.4% of GDP. Also this year, our country ranks first in silver production worldwide, generating 379 thousand direct jobs and 2.4 million indirect ones.
  • Mining companies operating in Mexico have cut their capital investment budgets by 20% on average in 2020 due to disruptions caused by COVID-19. Updated estimates from nine of the country’s largest gold, silver and copper producers show total spending of USD $1.95B, down USD $488M from the projected amount of USD $2.44B before the pandemic.
  • The company Roca Fosforica Mexicana (Rofomex) seeks to expand its mining area in San Juan de la Costa north of La Paz Baja California Sur. Rofomex filed an environmental permit to explore outside the boundaries of the mining project. The exploration plan established an area where the project will be carried out. It is more than 1,203 ha and contemplates the completion of works for the drilling of 7 holes.

ON EXPLORATION

  • Colibri Resource Corporation received an exploration permit to begin a trench program at its Evelyn project. The company plans to dig up to 2.2km of trenches in up to 13 separate areas on Evelyn project in order to extend mineralization at selected occurrences and to provide exposure for geological and structural mapping of veins and structures.
  • Silver Tiger Metals Inc., provided an update on ongoing exploration at its wholly-owned El Tigre Silver project in Sonora. The company is currently conducting a drill program with two rigs focused on the Caleigh, the Protectora and the Fundadora veins, all of which outcrop on surface and are exposed in exploration drifts in the 3km north of the historic El Tigre mine.
  • Brigadier Gold Limited provided an exploration update on its Picachos project in Sinaloa. The company is preparing a fully financed 5,000m drilling program in approximately 40 holes targeting four high grade Au-Ag veins found within the Colomeca vein system, comprised of several sub-parallel veins over a 1.5km wide zone. In addition, Brigadier is also planning approximately 3 line-km of trenching across several historic sample sites to follow-up anomalies identified by the historic work to define drill targets. “Brigadier intends to have drills turning by the third week of September and look forward to providing updates as results become available.”
  • Oroco Resource Corp., initiated a 3D resistivity and IP survey at its Santo Tomas project in Sinaloa. The survey is targeted to cover an area of approximately 10 km of the property which will encompass the mineralized South Zone, North Zone and the Brasiles Zone at Santo Tomas. The survey comprises a dipole – pole – dipole arrangement and targets the layout of some 26 Rx (receiver) lines spaced at 200m.
  • Canasil Resources Inc., released results from 2 initial drill holes collared at its Nora project in Durango. Hole NCR-20-01tested the Candy vein and intersected 1.6 g/t Au, 440 g/t Ag, 2.51% Cu, 2.1% Pb, and 0.61% Zn over 0.29m, while hole NCR-20-02 encountered 0.72 g/t Au, 21 g/t Ag, 0.1% Cu, 0.2% Pb, and 0.5% Zn over 4.8m, including 1.81 g/t Au, 62 g/t Ag, 0.08% Cu, 0.1% Pb, and 0.61% Zn over 0.38m. Drill hole NRC-20-03, targeted below NRC-20-02 has been completed to a depth of 302 metres, and NRC-20-04 is in progress, targeted below NRC-20-01 as planned.

ON MINING

  • Excellon Resources Inc., provided an operation update on its La Platosa mine in Durango. The company achieved a strong production after resuming mining and milling activities in mid-June, 2020. In July, 2020 the company mined and processed 7,044 and 7,408 tonnes respectively with grades of 528 g/t Ag, 5.8% Pb, and 7.7% Zn at metallurgical recoveries of 92.4%, 85.7%, and 77.6% respectively, to produce 116.3K Oz Ag, 972K Lb Pb, and 7K Lb Zn (198.5K Oz AgEq).
  • Consolidated Zinc Ltd., reported H1, 2020 production and financial results from its Plomosas mine in Chihuahua. The company mined in H1, 2020, over 12,332 tonnes of 16.4% Zn and 8.6% Pb to produce 2.25M Lb of payable Zn, 546.7K Lb of payable Pb, and 455 Oz of payable Ag sold in Zn and Pb concentrates. Consolidated Zinc reported a net loss after income tax of USD $2.19M, a profit of USD $0.56M, total assets of USD $4.14M, and total liabilities of USD $3.79M. Total cash reported was USD $0.77M and borrowings were USD $0.98M.

ON FINANCING

  • Mag Silver Corp., completed its previously announced at the market equity program for gross and net proceeds of USD $50M and USD $48.62M respectively. Net proceeds will be used to fund the completion of construction of the Juanicipio project, with any reminder to fund further exploration of Juanicipio and other projects, and for working capital and general corporate purposes.
  • Comet Resources Limited announced that it will be conducting a placement for gross proceeds of $2M. The offer under the plan will raise a maximum of $500K on the terms and conditions contained in this letter. In conjunction with the placement, this will provide the company with additional funds of up to $2.5M. Part of the funds raised will be used for ongoing exploration at Santa Teresa project in Baja California as well as for the payment of costs associated with the plan and placement and general working capital.
  • Excellon Resources Inc., completed its share consolidation in connection with its plan to trade on the NYSE American LLC, which is now effective. Excellon’s shares are expected to commence trading on the NYSE American by the end of September under the ticker symbol “EXN” (La Platosa mine, Durango).
  • Monarca Minerals Inc., completed its previously announced shares for debt transaction to settle an aggregate of $301,324 owing to certain officers, directors and services providers of the company. The amount settled includes $194K out of $342K of accrued directors, management, and consulting fees (Tejamen property, Durango).
  • Sable Resources Ltd., closed its previously announced private placement for total gross proceeds of approximately $9.9M. Net proceeds will be used for exploration and general corporate and working capital purposes (Margarita and Vinata project, Chihuahua).

ON RESOURCES AND DEVELOPMENT

  • Bacanora Lithium plc., provided an operational update of its Sonora Lithium project in Sonora. The pilot plant has completed the bulk sampling required for the Sonora plant, the same that were submitted to relevant partners in China and USA for optimization of the final design. GR Engineer completed its concentrator design work and will integrate this into the overall project scope, and its JV partner Ganfeng Lithium completed its flow sheet design testwork for the production of battery grade lithium from the samples provided by the pilot plant.  Bacanora therefore remains on schedule to commence initial site works at Sonora in H1 2021, subject to completion of financing, which would enable commencement of production at the plant in 2023.
  • Capstone Mining Corp., provided updated proven and probable mineral reserves and positive results of an updated technical report for its Cozamin mine in Zacatecas. Proven and probable reserves as of April 30, 2020 are 10,178,000 tones of 1.79% Cu, 41 g/t Ag , o.36% Zn and 0.05% Pb for a total of 2M Lb Cu, 13.5M Oz Ag, 79.4M Lb Zn, and 11M Lb Pb. Capstone updated life of mine plan with annual average Cu and Ag production increased by 70% to 61.4M Lb Cu and 43% to 1.75M Oz Ag respectively. Average annual C1 costs (net of by-products) are expected to move 23% lower to $0.67 per payable Lb Cu. It also announced that ramp-up to 1.35 million tonnes milled per annum (“tpa”) by Q2 2021 is on time and budget, that tailings management transformation activities are progressing on schedule, and that a PFS of an underground paste backfill system is underway. Finally, it also reported that a new step-out hole drill program totalling 80 holes targeting the down dip extension to the southeast of both Vein 10 and Vein 20 is underway. Hole S499 and S503 intersected high grade polymetallic copper, zinc, lead and silver in a 650-meter step-out from the current mineral resource. A 1 km exploration drift is being considered to provide a drilling platform to target this new area.

ON DEALS AND CORPORATE ISSUES

  • Excellon Resources Inc., announced that it has applied to list its issued and outstanding common shares on the New York Stock Exchange (NYSE) American, LLC., under the ticker symbol “EXN” (La Platosa mine, Durango).
  • Mithril Resources Limited announced that its CEO was appointed as Managing Director (Copalquin project, Durango).
  • Sonoro Metals Corp., presented results from its annual general meeting of shareholders and announced it has changed its name from Sonoro Metals Corp., to Sonoro Gold Corp., and will commence to trade with the new ticker symbol “SGO” (Cerro Caliche project, Sonora).
  • Alien Metals Ltd., entered into an exclusivity agreement with Capstone Mining Corp., in respect of the potential farm out of an interest in its Donovan 2 Copper-Gold project in Zacatecas. The agreement provides for a 45-day period for Capstone to undertake due diligence to their satisfaction. If the parties decide to move into a definitive agreement, then Capstone could earn-in to the Donovan 2 property through a combination of carried expenditures and cash payments.
  • Almaden Minerals Ltd., announced the decision of the Second District Court in Puebla in respect of its environmental permit application for its Ixtaca project in Puebla. “The company challenged an October, 2019 decision by Mexico’s environmental authority (“SEMARNAT”) to suspend its review of the Ixtaca project’s environmental permit application (“MIA”) until resolution of legal proceedings (the “Amparo”) regarding certain of the Company’s mineral concessions which encompass the area of the Ixtaca project. In its recent decision, the Court dismissed the “incident” principally on the basis that SEMARNAT is not a party to the Amparo. Furthermore, in a related communication with SEMARNAT, the Court also confirmed that the existence of the Amparo does not prevent SEMARNAT from resolving the MIA permit application and that SEMARNAT is free to act within its jurisdiction and authority in respect of the MIA review. The Ministry of the Economy, the Mining Authorities, the Congress, Senate, and the Office of the Presidency all made submissions to the Court as part of this decision. The Company awaits a response from SEMARNAT to the Court decision”.
  • Argonaut Gold Inc., entered into a definitive agreement for the sale of its Ana Paula property in Guerrero. Total consideration to Argonaut includes USD $30M on closing, CAD $10M upon the announcement of commencement of construction, a 1% NSR, and 9.9% of the outstanding common shares of the acquiring company, which will be formed by a business combination of 1252201 BC Ltd (“AP Mining”) and Pinehurst Capital II Inc. (“Pinehurst”), creating a new publicly traded gold development company (the “Resulting Issuer”).
  • Consolidated Zinc Limited secured an agreement with Industrias Peñoles to sale under favorable terms the 100% of the Zn concentrate produced by the company in 2021 at its Plomosas mine in Chihuahua.
  • Newmont Corporation appointed Susan N Story to its board of directors and achieves gender parity for non-executive directors (Peñasquito mine, Zacatecas).
  • Southern Silver Exploration Corp., presented results from its annual general meeting of shareholders. In this meeting shareholders re-elected directors and approved the purchase of Electrum Global Holdings L.P.’s 60% ownership interest in Southern Silver Holdings Limited and indirect 60% interest in the Cerro Las Minitas property in Durango.

ON SOCIAL RESPONSIBILITY

  • First Majestic Silver Corp., invested during 2019, USD $3.8M in local communities where it operates, destined to health programs, infrastructure, access to water, and youth projects. In 2019, First Majestic planted 105,730 native plants through reforestation initiatives, and also recycled more than 80% of the water used in its operations. At the end of 2019, First Majestic employed a total of 4,681 people: 3,305 employees and 1,376 contractors, distributed in the six operating mines of the company: San Dimas, and La Parrilla, in Durango; La Encantada, in Coahuila; Santa Elena, in Sonora; Del Toro, in Zacatecas, and San Martín, in Jalisco.
  • Fresnillo plc, continued donating personal equipment to prevent infections by COVID-19 in Caborca, Sonora. The company delivered 8,000 face masks as part of a social program to raise awareness among the population about the importance of health care to avoid the spread of the virus.
  • The Municipal President of Fresnillo, Zacatecas delivered the first stage of the rainwater collector with an investment of MXP $6M from the Mining Fund. This work has 180 linear meters and has favored the inhabitants of the El Vergel subdivision and neighboring colonies since it is channeled to rainwater and prevents floods.
  • The Municipal President of Cuencame, Durango announced that MXP $16.6M were invested in the construction of domes and paved street, installation of electrical networks, potable water and drainage in several communities in Cuencame, Durango. In addition, she also reported that more than two thousand direct and indirect jobs were generated.
  • Grupo Mexico S.A.B de C.V., offered more than 130 weekly workshops via social networks generating content for the community with a focus on prevention, healthy distance and stay at home, as well as implementation of workshops in the areas of education and culture, health and safety, environment and sports.
  • The Peñoles nursery garden continues donating trees to people seeking to expand the green folder in their home, plaza or a larger space for the community. Goal of the program is to reforest public spaces in order to maintain an ecological balance. The company also is carrying out cleaning and disinfection of classrooms, furniture and teaching materials at a Federal Middle School #2.
  • Minera Media Luna (Torex Gold Resource) improved public spaces in the Atzcala community in Guerrero. Among the activities carried out were the pruning of trees, painting of sidewalks and fences, construction of concrete tops, cleaning of planters, reforestation, cleaning in the elementary school and kindergarten, placement of fencing in the field, replacement of lights and other activities.

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, stibnite in a fine grained quartz vein from an epithermal vein system in a prospect in San Luis Potosi, Mexico.  Photo by Miguel A Heredia

 

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

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.