Quartz hydrothermal breccia
By Miguel A Heredia
During the 44th week of the year (November 1st to November 7th, 2021), at least 29 press releases were announced by companies working in Mexico, with nine reporting resources and developments, seven informing on exploration results, six communicating production and financial results, three announcing financial issues, three disclosing deals and corporate issues, and one discussing social issues. ON MEXICO ISSUES, no relevant news. ON EXPLORATION, In Sonora, Aztec Minerals and its JV Kootenay approved a 5,000m RC drill program at its Cervantes project, Canuc added two new mining concessions to its San Javier project, and Ranchero Gold provided an update on its Phase 1 drill program at its Santa Daniela project. In Chihuahua, Kootenay released results from three drill holes collared at its Columba project. In Durango, Silver Wolf engaged Terraquest to conduct a high resolution aeromagnetic, radiometric and matrix electro- magnetic geophysical survey on its Ana Maria property. In Zacatecas, Almadex completed a field program implemented to refine targets at its Las Lajas project. In Jalisco, Almadex reported that it has conducted IP geophysics at its San Pedro project. In Guerrero, Pantera Silver informed that it has completed all the reports and requirements needed to apply for a drill permit for its Nuevo Taxco project. ON MINING, Americas Gold and Silver announced that its Cosalá operation in Sinaloa has been re-started and all workers have been re-called. First Majestic announced Q3, 2021 production and financial results from their Mexican operations. Golden Minerals presented Q3, 2021 production and financial results from its Rodeo mine in Durango. Mexus announced revenue of $128K for the month of October from its Santa Elena mine in Sonora. Minera Alamos reported that it has made an initial delivery of gold doré from its Santana mine in Sonora. Torex reported Q3, 2021 production and financial results from its El Limon-Guajes Mine Complex in Guerrero, and provided full year 2021 production guidance. ON FINANCING, Aztec Minerals closed the first tranche of a private placement for gross proceeds of CAD $1M (Cervantes project, Sonora). One World Lithium closed a first tranche of a non-brokered private placement for gross proceeds of $765,221 (Salar del Diablo project, Baja California). Southern Empire announced its intention to undertake a non-brokered private placement for gross proceeds of up to $1M (Pedro Gold project, Durango). ON RESOURCES AND DEVELOPMENT, Altaley announced that it has hired MGA Contratista Minera at its underground mining contractor for its Tahuehueto mine in Durango. Azucar Minerals reported that a mineral chemistry porphyry vectoring study has identified a new target area for a possible central porphyry system to its the El Cobre project, Veracruz. In Baja California, Comet released results from eight drill holes collared at its Santa Teresa project. Fabled reported results from one hole collared at its Santa Maria project in Chihuahua. Mithril announced drill results from its Copalquin project in Durango. Silvertone commenced a 2,200m drilling program at its Peñasco Quemado project in Sonora. Tarachi reported positive metallurgical results from its Magistral Tailings project in Durango. Vizsla released results from its ongoing resource focused drilling program from its Panuco project in Sinaloa. GR Silver provided an update on its 2021 drilling program at its Plomosas project in Sinaloa. ON DEALS AND CORPORATE ISSUES, Candelaria Mining announced that it will commence trading on the OTCQX Best Market (Caballo Blanco project, Veracruz). Kootenay Silver and Kootenay Resources announced completion of spin-out transaction (Columba project, Chihuahua). Monumental Gold received approval from TSX to acquire from Discovery Silver the Jemi rare earth elements project in Coahuila. ON SOCIAL RESPONSIBILITY, Discovery Silver produced its first Environmental, Social and Governance (ESG) report (Cordero project, Chihuahua).
ON MEXICO ISSUE
- No relevant news.
ON EXPLORATION
- Aztec Minerals Corp., and its JV Kootenay Silver Inc., approved a 5,000m RC drill program, consisting of 22 holes, at its Cervantes project in Sonora. This Phase 2 drill program is expected to commence in this month and plans to test the main four targets: California, California Norte, Jasper, and Purisima East. “The primary objectives of the two phase 2021 exploration program are to better define the open pit, heap leach gold potential of the porphyry gold oxide cap at California, evaluate the potential for deeper copper-gold porphyry sulfide mineralization underlying the oxide cap, test for north and west extensions of the California mineralization at California North and Jasper, and assess the breccia potential of Purisima East”.
- Canuc Resources Corporation added two new mining concessions to its San Javier project in Sonora. The new concessions acquired by staking are contiguous and cover extensions of one of the Company’s principal exploration targets.
- Ranchero Gold Corp., provided an update on its 13 holes, 3,000m Phase 1 drill program, at its Santa Daniela project in Sonora. The current drill program is planned to test three low-sulphidation epithermal targets: La Colmena, La Cascada, and X-Structure. To date, only 360m have been completed in two holes.
- Kootenay Silver Inc., released results from three drill holes collared at its Columba project in Chihuahua. Significant drill intercepts were encountered in holes CDH-21-110 with 269 g/t Ag, 0.3% Pb, and 0.8% Zn over 55m, including 453 g/t Ag, 0.6% Pb, and 1.4% Zn over 29.9m, including 650 g/t Ag, 0.9% Pb, and 2.3% Zn over 17.8m, and including multiple mineralized intervals varying from 100-1,915 g/t Ag, 0.1-5.4% Pb, and 0.1-9% Zn in widths from 0.3-2.5m; hole CDH-21-109 with 100 g/t Ag, 0.05% Pb, and 0.1% Zn over 31m, including 193 g/t Ag, 0.1% Pb, and 0.2% Zn over 14.56m, including 294 g/t Ag, 0.1% Pb, and 0.4% Zn over 7.11m, and including multiple mineralized intervals varying from 167-592 g/t Ag, 0.1-0.2% Pb, and 0.1-1% Zn over widths of 0.7-2.31m; and hole CDH-21-108 with 57 g/t Ag, 0.02% Pb, and 0.1% Zn over 166m, including 98 g/t Ag, 0.03% Pb, and 0.1% Zn over 77m, including 328 g/t Ag, 0.1% Pb, and 0.5% Zn over 11m, including 504 g/t Ag, 0.2% Pb, and 0.7% Zn over 5.9m, including 1,100 g/t Ag, 0.5% Pb, and 2% Zn over 1m, and including additional mineralized intervals varying from 124-331 g/t Ag, 0.1-0.2% Pb, and 0.2-0.6% Zn over widths of 0.5-1.5m.
- Silver Wolf Exploration Ltd., engaged Terraquest to conduct a high resolution aeromagnetic, radiometric and matrix electro- magnetic geophysical survey on its Ana Maria property, Durango. A total of 1,800 line kilometers will be flown over the entire property which consists of 9 mining concessions encompassing 2,549 hectares.
- Almadex Minerals Ltd., completed a field program implemented to refine targets at its Las Lajas project in Zacatecas, prior to a first pass diamond drill program planned for later this year. Las Lajas consists of a banded epithermal vein system and was staked by the company during a regional exploration program.
- Almadex Minerals Ltd, reported that it conducted IP geophysics at its San Pedro project in Jalisco, and has identified high chargeability responses that were not tested by the past drilling efforts. A drill program is currently underway at this project. Almadex and previous operators carried out surface sampling, geophysics, and drilling at the project. Historical reports include results of 55 sample reconnaissance rock chip sampling program which returned gold values from below detection to 12.4 g/t Au (averaging 0.44 g/t Au) and 0.07 to 2,490 g/t Ag (averaging 71.0 g/t Ag), and one RC hole including 1.65 g/t Au and 19 g/t Ag over a length of 6.08m.
- Pantera Silver Corp., informed that it has completed all the reports and requirements needed to apply for a drill permit for its Nuevo Taxco project. The company filed a Manifiesto de Impacto Ambiental (MIA) and an Estudio Técnico Justificativo (ETJ) with SEMARNAT. The Company is completing final preparations for drilling in anticipation of receiving a drill permit before the end of November.
ON MINING
- Americas Gold and Silver Corporation announced that its Cosalá operation in Sinaloa has been re-started and all workers have been re-called. The milling rate is expected to ramp out in tandem with mine production with a goal of processing 1,800 tonnes per day. Cosalá has over 20K tonnes of ore ready to be processed and approximately 20 loads of existing concentrate were shipped in late October. “Initial production will be focused on the main Zone consisting of high-grade Zn areas fully developed before the illegal blockade to maximize near-term free cash flow”.
- First Majestic Silver Corporation announced Q3, 2021 production and financial results from their Mexican operations. Figures by mine are shown in the table below:
· Mexus Gold US announced revenue of $128K for the month of October from its Santa Elena mine in Sonora. With the ongoing improvements to the heap leach pad and the addition of more activated carbon cells to collect value, the company expects November revenues to exceed $150K.
· Minera Alamos Inc., reported that it has made an initial delivery of gold doré from early material stacked on its Santana heap leach pad in Sonora state. Approximately 400 Oz Au was contained in the doré poured were sent off for final refining and sale.
· Torex Gold Resources Inc., reported Q3, 2021 production and financial results from its El Limon-Guajes Mine Complex in Guerrero, and provided full year 2021 production guidance. Torex produced 111,229 Oz Au at cash and AISC of USD $727 and USD $900 respectively per Oz Au sold, and sold 118,989 Oz Au at an average realized price of USD $1,786 per Oz Au. It reported an EBIDTA of USD $ 119.3M and free cash of USD $294M. The company announced a net earning of USD $36.5M or USD $0.423 per share; and adjusted net earnings of USD $42.9M or USD $0.50 per share, on both a basis and diluted basis. Cash flow totalized USD $87.8M and USD $100.2M prior to changes in non-cash working capital, including taxes paid of USD $19.7M. Free cash generated was USD $29.4M which includes an outflow of USD $12.4M related to changes in non-cash working capital. Finally, Torex reported net cash of USD $217.8M including USD $221.6M in cash and USD $3.8M of lease obligations. The company also provided a full year 2021 production guidance and expects to produce 430K-470K Oz Au at a total cash and AISC cost of USD $680-720 and USD $920-970 per Oz Au respectively.
ON FINANCING
· Aztec Minerals Corp., closed the first tranche of a private placement equity financing for gross proceeds of CAD $1M.The company plans to use part of the net proceeds to conduct exploration work on its Cervantes project in Sonora.
· One World Lithium Inc., closed a first tranche of a non-brokered private placement for gross proceeds of $765,221. Net proceeds will be used primary to fund the Salar Del Diablo exploration programs as well as for the initial start up for the Company’s separation technology testing and working capital.
· Southern Empire Resources Corp., announced its intention to undertake a non-brokered private placement for gross proceeds of up to $1M. Part of the net proceeds will be used for funding an exploration program at its Pedro Gold project in Durango, and for working capital purposes.
ON RESOURCES AND DEVELOPMENT
· Altaley Mining Corporation announced that it has hired MGA Contratista Minera S.A. de C.V. at its underground mining contractor for its Tahuehueto mine in Durango. MGA is now mobilizing its mining equipment to Tahuehueto Gold Mine to continue underground drift and stope development to advance the Tahuehueto Mine to production. “First production through the mill, which is at an advanced stage of construction, is anticipated near the end of 2021 when the first ball mill is to be commissioned and in Q1 2022 the second ball mill will be installed and brought online to thereafter, ramp up production to the mine’s anticipated 1,000 tonne per day capacity”.
· Azucar Minerals Ltd., reported that a mineral chemistry porphyry vectoring study, using chlorite and epidote, has identified a new target area for a possible central porphyry system to its the El Cobre project, Veracruz. This vectoring study indicates that the El Cobre district likely contains a fertile medium to large sized porphyry system and the most prospective area is located in the centre of the project where there has been little previous exploration drilling. “Field work has already been initiated in this area in order to identify any surface alteration and mineralization evidence and to prepare for a future drilling campaign to test this large target area”.
· Comet Resources Ltd. released results from a 2,250m drill program which consisted of eight drill holes collared at its Santa Teresa project in Baja California. Highlights include holes STDDH-21-006 with 63.2 g/t Au over 1.2m, and 27.5 g/t Au over 0.7m; hole STDDH-21-007 with 31 g/t Au over 1.6m; and hole STDDH-21-001 with 26.9 g/t Au over 1m. These results will be incorporated into resource modelling.
· Fabled Silver Gold Corp., reported results from one hole collared at its Santa Maria project in Chihuahua. Hole SM20-37 intercept the previously encountered dike and related breccia, and returned 0.56 g/t Au, 53 g/t Ag, 1.3% Pb, 3.3% Zn, and 0.14% Cu (82 g/t AgEq) over 8.8m, including 2.21 g/t Au, 112 g/t Ag, 3.3% Pb, 8.4% Zn, and 0.18% Cu (226 g/t AgEq) over 0.9, including 0.57 g/t Au, 38 g/t Ag, 1%Pb, 4.5% Zn, and 0.08% Cu (68 g/t AgEq) over 0.8m, including 0.28 g/t Au, 65 g/t Ag, 1.6% Pb, 2.9% Zn, and 0.19% Cu (79 g/t AgEq) over 1.5m,including 0.69 g/t Au, 109 g/t Ag, 2.5% Pb, 3.8% Zn, and 0.38% Cu (144 g/t AgEq) over 0.69m.
· Mithril Resources Inc., announced drill results from hole CDH-094 collared in El Refugio area at its Copalquin project in Durango. The hole intersected 1.88 g/t Au and 62 g/t Ag (2.76 g/t AuEq) over 3m, plus 9.64 g/t Au and 279 g/t Ag (13.63 g/t AuEq) over 18.67m, including 17.9 g/t Au and 482 g/t Ag (24.8 g/t AuEq) over 9.3m. The company announced that a maiden JORC mineral resource estimate is on schedule for Q4, 2021; and that a metallurgical test work will commence at November, 2021.
· Silvertone Metals Corp., commenced a 2,200m drilling program at its Peñasco Quemado project in Sonora. The drilling will test two priority target areas called La Fortuna and Peñasco Pit, located in separate areas of the property. In the Peñasco Pit area, the drilling program will test the interpreted along-strike extensions to this mineralized zone area that contains the drill defined historic resource estimate as identified by strong, southeast-trending geochemical anomalies (zinc, lead, barium and manganese in soils) which exceed three kilometers in length and have some coincidental geophysical anomalies. At La Fortuna, the drill program will test strong zinc, lead and copper soil anomalies with a coincidental “plug” like geophysical low resistivity anomaly that extends beyond 500 meters in depth. Company geologists interpret this geophysical anomaly as altered intrusive rocks which may be a potential source of mineralization.
· Tarachi Gold Corp., reported positive metallurgical results from its Magistral Tailings project in Durango. Total gold recovery after 48 hours of leach time ranged from 81.7 to 86.9% on as-received, unground samples. “With the tailings assay grades previously announced averaging 2.04g/t Au and the strong gold recoveries released today; the data continues to support our goal of producing a minimum of 15K Oz Au per year at Magistral.”
· Vizsla Silver Corp., released results from its ongoing resource focused drilling program from its Panuco project in Sinaloa. Ten new holes targeting the Napoleon Resource area and three new holes centered on the Tajitos Resource area were collared by Vizsla and encountered high-grade Ag-Au mineralization. At Napoleon area, significant mineralization was encountered in holes NP-21-173 with 99 g/t Ag, 6.8 g/t Au, 0.2% Pb, and 1.8% Zn (774 g/t AgEq) over 3.7m, and 227 g/t Ag, 2.57 g/t Au, 0.3% Pb, and 3.7% Zn (592 g/t AgEq) over a true width (TW) of 1.83m ; and hole NP-21-186, 200m step-out to the south with 58 g/t Ag, 0.93 g/t Au, 0.5% Pb, and 5.5% Zn (280 g/t AgEq) over a TW of 2.74m. At Tajitos area, highlights include hole CS-21-71 with 901 g/t Ag and 3.25 g/t Au (1,150 g/t AgEq) over a TW of 3.4m; and hole CS-21-60 with 201 g/t Ag and 1.4 g/t Au (319 g/t AgEq) over a TW of 6.82m. These results on Tajitos expanded the resource area by 200 metres along strike to the northeast. Drilling at Panuco project continue with two rigs expanding the Josephine Vein, with step-out holes underway testing both the southern and northern extents of the vein. The company expects to announce a maiden project resource estimate for Q1, 2022.
· GR Silver Mining Ltd., provided an update on its 2021 drilling program at its Plomosas project in Sinaloa. The drilling program has been focused primarily on new areas recognized as attractive sites for NW or NE trending, high-grade Au-Ag mineralized veins, such as Loma Dorada, San Marcial, El Trampolin, El Saltito, GAP area, and Plomosas South. Additionally, early-stage reconnaissance exploration at the Las Cuevas and El Ranchito areas provide additional prospects for future drilling.
ON DEALS AND CORPORATE ISSUES
· Candelaria Mining Corp., announced that it will commence trading on the OTCQX Best Market remaining under the symbol “CDELF”. Previously, the Company’s U.S. share trading was on OTC Pink (Caballo Blanco project, Veracruz).
· Kootenay Silver Inc., and Kootenay Resources Inc., announced that the spin-out transaction whereby Kootenay Silver spun-out 80% of the common shares of Kootenay Resources to its shareholders has been completed. “The holders of common shares of Kootenay Silver, received one new common share of Kootenay Silver and 0.04 Kootenay Resources Shares for each Old Kootenay Silver Share previously held. The Old Kootenay Silver Shares were delisted from the TSX Venture Exchange at the close of business on October28, 2021” (Columba project, Chihuahua).
· Monumental Gold Corp., received approval from TSX to acquire from Discovery Silver Corp., the Jemi rare earth elements project in Coahuila. Discovery has agreed to transfer and assign its rights and obligations of six mineral concessions comprising approximately 3,560 hectares that form the Jemi project located in the Ocampo municipality of Coahuila State to Monumental Gold. The original agreement transferred by Discovery to Monumental is an option agreement to acquire 100% of the property from vendors by completing USD $2M of exploration expenditures on the property by May 16, 2024, and paying to the vendors USD $500K in cash or common shares upon the exercise of the option. In connection with the approval by the TSX of the Assignment Agreement, the Company will change its name to “Monumental Minerals Corp., and the trading symbol will change to “MNRL”.
ON SOCIAL RESPONSIBILITY
· Discovery Silver Corp. produced its first Environmental, Social and Governance (ESG) report, setting out the Company’s current practices and priorities going forward. Highlights based on 2020 calendar year include over CAD $1.7M in goods and services purchased from local Mexican businesses; over CAD$1.3M in salaries and benefits paid to local employees; Total workforce of 124 includes 58 employees and 66 contractors, ( Employees: 89% Mexican nationals, 11% Canadian, and Contractors: 98% Mexican nationals, 2% Canadian); Total GHG emissions of 167 tonnes of CO2 equivalent; Total water withdrawal of 36,017 m3 and total water discharged of 36,007 m3; and Zero fatalities and only 5 first-aid incidents (Cordero project, Chihuahua).
Content like what you have just read can be seen at https://gambusinoprospector.com/ and at LinkedIn’s Mexico Mineral Exploration Group.
On the picture above, a quartz hydrothermal breccia containing malachite stains in an epithermal quartz vein system in a project in Sonora, Mexico. Photo by Miguel A Heredia.