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The Mining and Exploration News in Mexico: Highlights on the Fourth Week of July, 2023

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Diatreme Breccia

By Miguel A Heredia During the 30th week of the year (July 24th to July 30th, 2023), at least 15 press releases were announced by companies working in Mexico, and 3 news published by the media, with five communicating production and financial results, four commenting on Mexican issues, three reporting resources and development of their properties, two disclosing deals and corporate issues, two informing on exploration results, and , two announcing financing issues, ON MEXICO ISSUES, Minera Autlan’s revenues in Q2, 2023 fell 51% due to the drop in manganese prices. Grupo Mexico obtained an increase of 37% of its net profits in Q2, 2023 due to the rise in copper prices. Several countries have requested a 10-year moratorium or pause on the exploitation of marine mining, as there is little information about the damage it could cause. Prismo, Silver Tiger and Reyna Gold reported the best drilling intercepts in Mexico on the fourth week of July, 2023. ON EXPLORATION, In Sonora, Reyna Gold released results from the first ten holes for a total of 1,328m of planned 5,500m from  phase 2 drilling at its La Gloria project. In Sinaloa, Prismo reported results from seven holes drilled at its Palos Verdes project, in the Panuco mining district.  ON MINING, Sierra Metals reported Q2, 2023 production and financial results from its Mexican operations. Mag Silver reported Q2, 2023 production results from its Juanicipio Mine in Zacatecas (56% / 44% Fresnillo plc and Mag respectively). Alamos Gold presented Q2 and H1 production and financial results from its Mulatos Mine in Sonora. Gold Resource announced Q2, 2023 production and financial results from its Don David Gold Mine in Oaxaca.  Agnico reported Q2, and H1, 2023 production and financial results from their Pinos Altos and La India mines in Chihuahua and Sonora respectively. ON FINANCING, Bear Creek closed its previously announced non-brokered private placement for gross proceeds of CAD $8.2M (Mercedes Mine, Sonora). Excellon announced agreement to extend maturity of convertible debentures (La Negra Mine, Queretaro).  ON RESOURCES AND DEVELOPMENT, Silver Tiger released drill results from its ongoing program at El Tigre project in Sonora. Torex provided a Q3, 2023 update on its Media Luna project in Guerrero. SilverCrest provided notice of updated technical report (Las Chispas Mine, Sonora). ON DEALS AND CORPORATE ISSUES, Fortuna announced that it will release its unaudited financial statements and Management Discussions & Analysis (MD&A) for the second quarter 2023 on Wednesday, August 9, 2023, after the market closes (San Jose Mine, Oaxaca). Tocvan acquired 100% interest in Pilar expansion area project in Sonora.  ON SOCIAL RESPONSIBILITY, Fortuna Silver published its fifth annual sustainability report (San Jose Mine, Oaxaca).

ON MEXICO ISSUE

  • Minera Autlan’s revenues in Q2, 2023 fell due to the drop in manganese prices. During the Q2, 2023 the revenues of the Autlán mining company totaled USD $85.8M, that is, they had a loss of 51.2% in relation to the USD $175.7M obtained during the same period of 2022. In addition, between April and June 2023, its operating flow had a 92.9% drop, losing USD $66.4M. In its financial report issued to the Mexican Stock Exchange (BMV), the company explained that said loss was the result of different factors, one of them the drop in the prices of products such as manganese, for the production of manganese ferroalloys, as well as in the inputs for the production of steel. The mining company reported a net loss of USD $20M, which is added to the USD $11.8M lost in the first quarter of this year, thus totaling net losses of USD $31.8M in the first half of the year.
  • Grupo Mexico reported a net profit of USD $840M, which represented an increase of 37.5% compared to the USD $611M reported during the same period of the former year. In addition to the profits, the company owned by Germán Larrea had an increase in its operating flow of 14.6% to a value of USD $1,628M, that is, USD $227M more than in the second quarter of the previous year. In addition to the gains in its net profit and in its operating flow, the conglomerate that operates three divisions (Minera México, Grupo México Transportes and Grupo México Infraestructura), indicated that its revenues during Q2, 2023 amounted to USD $3,453M, which represented a growth of 7.8% compared to the USDS $3,203 that it reached in the same period of the previous year. Finally, it explained that, in the second quarter of the year, 79.2% of its income came from copper, 9.9% from molybdenum, 4% from silver, 2.8% from zinc, and the rest from income from gold and other byproducts.
  • Several countries including Brazil and Costa Rica, have requested a 10-year moratorium or pause on the exploitation of marine mining, as there is little information about the damage it could cause. The debate in the Assembly allows the 168 Member States of the International Seabed Authority (ISA), not just the 36 Council members, to express their views on this issue and formulate a general policy for the protection of the marine environment. At the Council meeting, governments and delegations from countries such as Norway, Mexico, the United Kingdom, China and Nauru continued to push for the mining code to be adopted as soon as possible. On the seabed, as far as is known, are 96% of the cobalt reserves, 84% of the nickel and 79% of the manganese, which are now crucial for the manufacture of batteries, wind generators and photovoltaic panels.
  • Prismo Metals Inc., Silver Tiger Metals Inc., and Reyna Silver Corp., reported the best drilling intercepts in Mexico on the fourth week of July, 2023. Details are shown in the table below:

ON EXPLORATION

  • Reyna Gold Corp., released results from the first ten holes for a total of 1,328m of planned 5,500m from phase 2 drilling at its La Gloria project in Sonora at La Republicana Zone. Drilling highlights include hole LG-23-39 with 1.09 g/t Au over 21.1m, including 14.20 g/t Au, 49 g/t Ag, and 0.32% Pb over 1m, including 1.67 g/t Au, 20 g/t Ag, and 0.3% Pb over 1m, including 1.20 g/t Au over 1m, including 1.77 g/t Au, 20 g/t Ag, and 0.5% Cu over 0.5m, including 9.14 g/t Au and 79 g/t Ag over 0.5m; hole LG-23-32 with 0.96 g/t Au over 19.90m, including 4 g/t Au and 23 g/t Ag over 1m, including 2.04 g/t Au and 20 g/t Ag over 0.75m, including 12.25 g/t Au, 123 g/t Ag, and 0.3% Pb over 0.90m; and hole LG-23-40 with 0.76 g/t Au over 19.05m, including 3.68 g/t Au over 3.85m, including 1.79 g/t Au and 17 g/t Ag over 0.55m, including 9.28 g/t Au, 96 g/t Ag, 0.5% Pb, and 0.3% Zn over 0.50m, including 19.55 g/t Au, 161 g/t Ag, 1.26% Cu, and 0.1% Zn over 0.35m, including 1.38 g/t Au, 14 g/t Ag, 0.1% Pb, and 0.2% Zn over 0.60m. “Two initial holes into Western Zone targeting a large Induced Polarization anomaly produced long intersections of anomalies of zinc and molybdenum with high levels of sulfides (pyrite, pyrrhotite, and chalcopyrite) and multiple gold intersections correlated with bismuth, adding to the evidence of potential proximity to a mineralized porphyry system”.
  • Prismo Metals Inc., reported results from seven holes drilled at its Palos Verdes project, in the Panuco mining district in Sinaloa. Drilling highlights include hole PV-23-25 with 1.36 g/t Au, 384 g/t Ag, 0.11% Cu, 0.1% Pb, and 0.3% Zn (512 g/t AgEq) over 0.3m, plus 38.2 g/t Au, 1,157 g/t Ag, 0.08% Cu, 0.06% Pb, and 0.1% Zn (4,311 g/t AgEq) over 1.35m, including 102 g/t Au, 3,100 g/t Ag, 0.2% Cu, 0.2% Pb, and 0.3% Zn (11,520 g/t AgEq) over 0.5m; hole PV-23-24 with 0.87 g/t Au, 43 g/t Ag, 0.07% Cu, 0.04% Pb, and 1.46% Zn (178 g/t AgEq) over 2m, including 1.84 g/t Au, 95 g/t Ag, 0.05% Cu, 0.05% Pb, and 1.3% Zn (302 g/t AgEq) over 0.84m, plus 3.3 g/t Au, 32 g/t Ag, 0.14% Cu, 0.4% Pb, and 1.6% Zn (384 g/t AgEq) over 1.83m, including 11.90 g/t Au, 60 g/t Ag, 0.2% Cu, 0.7% Pb, and 3.9% Zn (1,234 g/t AgEq) over 0.49m.; and hole PV-23-20 with 1.58 g/t Au, 0.01% Pb, and 0.01% Zn (189 g/t AgEq) over 0.9m, plus 0.21 g/t Au, 53 g/t Ag, and 0.01% Zn (71 g/t AgEq) over 0.20m.

 ON MINING

  • Sierra Metals Inc., reported Q2, 2023 production and financial results from its Mexican operations. At Bolivar Mine, Chihuahua, the company processed 405,987 tonnes of 0.92% Cu, 20 g/t Ag, and 0.42% Au with metallurgical recoveries of 92.92%, 80.45%, and 66.38% respectively, to produce 7.65M Lb Cu, 207K Oz Ag, and 3,678 Oz Au (10.72M Lb CuEq). At Cusi Mine, Chihuahua, Sierra Metals processed 51,750 tonnes of 160 g/t Ag, 0.14 g/t Au, and 0.33% Pb with ,metallurgical recoveries of 81.67%, 58.06%, and 86.54% to produce 217K Oz Ag, 131 Oz Au, and 326K Lb Pb (241K Oz AgEq). In both cases, CuEq and AgEq were calculated at realized prices of USD $3.99/Lb Cu, USD $24.17/Oz Ag, USD $1,977/Oz Au, and USD $0.96/Lb Pb.
  • Mag Silver Corp., reported Q2, 2023 production results from its Juanicipio Mine in Zacatecas (56% / 44% Fresnillo plc and Mag respectively). The project operator (Fresnillo plc) processed 377,018 tonnes with an average grade of 498 g/t Ag to produce 5.27M Oz Ag, 10.6K Oz Au, 7.62M Lb Pb, and 12.14M Lb Zn.
  • Alamos Gold Inc., presented Q2 and H1 production and financial results from its Mulatos Mine in Sonora. During the period Q2, 2023, the company produced 60.3K Oz Au and sold 60.2K Oz Au for a cost of sales of USD $70.9M. The company reported a cost of sales for Oz Au of USD $1,178 per Oz Au sold, a total cash cost and AISC of USD $847 and USD $894 respectively per Oz Au sold, and a capital expenditures (sustaining, growth and capitalized expenditures) of USD $6.5M.  For the period H1, 2023, Alamos has produced 110.8K Oz Au and sold 113.5K Oz Au for a cost of sales of USD $133.3M. The company reported a cost of sales for Oz Au of USD $1,175 per Oz Au sold, a total cash cost and AISC of USD $843 and USD $903 respectively per Oz Au sold, and a capital expenditures (sustaining, growth and capitalized expenditures) of USD $9.2M. The company also provided its 2023 outlook. It plans to produce 175K-185K Oz Au at a total cash and AISC of USD $900-950 and USD $950-1,000 respectively per Oz Au sold; and capital expenditures (sustaining, growth and capitalized expenditures) of USD $19-24M.
  • Gold Resource Corporation announced Q2, 2023 production and financial results from its Don David Gold Mine in Oaxaca. The company milled 113,510 tonnes of 1.59 g/t Au, 86 g/t Ag, 0.37% Cu, 1.6% Pb, and 3.7% Zn to produce 4,637 Oz Au, 289.8K Oz Ag, 748.2K Lb Cu, 3.1M Lb Pb, and 8M Lb Zn and sold 4,287 Oz Au, 274.2K Oz Ag, 732.5K Lb Cu, 2.95M Lb Pb, and 7.03M Lb Zn at realized prices of USD $2,010 per Oz Au, USD $24.03 per Oz Ag, USD $8,397 per tonne of Cu, USD $2,153 per tonne of Pb, and USD $2,485 per tonne of Zn. Total cash cost and AISC were USD $1,333 and USD $1,900 per Oz Au sold respectively. Year to date highlight include a total of 10.8K Oz Au sold and 569K Oz Ag sold, with a working capital of USD $20.8M at June 30, 2023.
  • Agnico Eagle Mines Limited reported Q2, and H1, 2023 production and financial results from their Pinos Altos and La India mines in Chihuahua and Sonora respectively. At Pinos Altos, Chihuahua, Agnico milled 401K tonnes in Q2, 2023 with an average grade of 1.82 g/t Au to produce 22,159 Oz Au at a production cost of USD $87 per tonne, a production cost per Oz Au produced of USD $1,566, and a total cash cost of USDS $1,282 per Oz Au produced. Year to date, Agnico has produced 765K tonnes with an average grade of 1.97 g/t Au to produce 46,293 Oz Au at a production cost of USD $88 per tonne, a production cost per Oz Au produced of USD $1,461, and a total cash cost of USDS $1,196 per Oz Au produced. At La India, Sonora, the company milled 880K tonnes in Q2, 2023 with an average grade of 0.74 g/t Au to produce 17,833 Oz Au at a production cost of USD $27 per tonne, a production cost per Oz Au produced of USD $1,326 and a total cash cost of USDS $1,385 per Oz Au produced. Year to date, Agnico has produced 1.54M tonnes with an average grade of 0.72 g/t Au to produce 34,154 Oz Au at a production cost of USD $28 per tonne, a production cost per Oz Au produced of USD $1,281, and a total cash cost of USDS $1,348 per Oz Au produced. Open pit mining and crusher operations are expected to be concluded in the Q4, 2023.

ON FINANCING

  • Bear Creek Mining Corporation closed its previously announced non-brokered private placement. A total of 16.725M of shares were sold at a price of CAD $0.49 per common share for gross proceeds of CAD $8.2M. Net proceeds will be used for exploration and production improvements at its Mercedes Mine in Sonora, and for general corporate purposes.
  • Excellon Resources Inc., announced agreement to extend maturity of convertible. The company entered into a binding agreement with holders of greater than 662/3% of its outstanding 5.75% secured convertible debentures in the aggregate principal amount of CAD $17.91M to extend the maturity date of the Convertible Debentures by 367 days from July 30, 2023 to July 31, 2024 (La Negra Mine, Querétaro).  

ON RESOURCES AND DEVELOPMENT

  • Silver Tiger Metals Inc., released drill results from its ongoing program at El Tigre project in Sonora. Hole ET-23-463 intersected 0.95 g/t Au, 2 g/t Ag, 0.01% Pb, and 0.01% Zn (73 g/t AgEq) over 36m on the Open Pit Gold Zone, including 2.79 g/t Au, 2 g/t Ag, 0.01% Pb, and 0.01% Zn (212 g/t AgEq) over 6.4m, including 7.18 g/t Au, 5 g/t Ag, 0.01% Pb, and 0.01% Zn (544 g/t AgEq) over 1.5m, plus 0.13 g/t Au, 610 g/t Ag, 0.61% Cu, 0.4% Pb, and 0.7% Zn (711 g/t AgEq) over 9.9m on the Sulphide Zone, including 0.18 g/t, 827 g/t Ag, 0.83% Cu, 0.6% Pb, and 0.9% Zn (963 g/t AgEq) over 6.2m, including 0.19 g/t Au, 1,431 g/t Ag, 2.08% Cu, 0.5% Pb, and 1.7% Zn (1,713 g/t AgEq) over 0.7m, including 0.14 g/t Au, 1,089 g/t Ag, 1.01% Cu, 1.0% Pb, and 1.5% Zn (1,269 g/t AgEq) over 2.7m, including 0.14 g/t Au, 1,166 g/t Ag, 1.04% Cu, 0.8% Pb, and 0.5% Zn (1,3131 g/t AgEq) over 2m, plus 0.17 g/t Au, 213 g/T Ag, 0.24% Cu, 1.7% Pb, and 1.4% Zn (335 g/t AgEq) over 4m on Elk Tigre Vein Zone, including 0.18 g/t Au, 243 g/t Ag, 0.27% Cu, 2 % Pb, and 1.6% Zn (385 g/t AgEq) over 3.2m; and hole ET-23-464 with 0.04 g/t Au, 63 g/t Ag, 0.08% Cu, 0.2% Pb, and 0.03% Zn (80 g/t AgEq) over 3m on the HW Gold Zone, including 0.04 g/t Au, 167 g/t Ag, 0.18% Cu, 0.6% Pb, and 0.06% Zn (204 g/t AgEq) over 0.7m, plus 0.07 g/t Au, 31 g/t Ag, 0.13% Cu, 0.5% Pb, and 0.4% Zn (72 g/t AgEq) over 12m, including 0.08 g/t Au, g9 g/t Ag, 0.09% Cu, 0.7% Pb, and 1.2% Zn (140 g/t AgEq) over 3m, plus 0.33 g/t Au, 43 g/t Ag, 0.03% Cu, 1.7% Pb, and 11.6% Zn (496 g/t AgEq) over 6.7m on the Sulphide Zone, including 0.21 g/t Au, 39 g/t Ag, 0.04% Cu, 2.6% Pb, and 24.6% Zn (936 g/t AgEq) over 0.7m, plus 0.26 g/t Au, 14 g/t Ag, 0.02% Cu, 0.7% Pb, and 0.7% Zn (64 g/t AgEq) over 3.1m. The company plans further drilling to the north and south of the Sulphide Zone to expand this area of known mineralization.
  • Torex Gold Resources Inc., provided a Q3, 2023 update on its Media Luna project in Guerrero. The company reported that development activities continue to advance with the project remaining in budget and on schedule, with 35% complete across engineering, procurement, underground development, and surface construction. With USD $143.6M of expenditures incurred through H1 and the quarterly spend rate expected to increase further, full year guided expenditures are trending towards the lower end of the guided range of $390M to $440M. As of June 30th, 45% of upfront project expenditures had been committed or incurred. The Guajes Tunnel has advanced 4,500 metres with breakthrough on track for early Q1 2024, if not earlier. At South Portal Lower, the main spiral ramp was completed post-quarter end and the primary tunnel has advanced 2,075 metres. Civil works on both sides of the Balsas River continued during the quarter, and concrete installation will commence as the site-wide concrete contractor is selected.   “With development activities tracking to plan, robust financial liquidity, and strong ongoing cash flow from El Limón Guajes, we are well positioned physically and financially to deliver Media Luna on time and on budget, with first concentrate production in Q4 2024 and commercial production in early 2025.”
  • SilverCrest Metals Inc., provided notice of updated technical report (Las Chispas Mine, Sonora). The company announced that it will release results from its updated Technical Report on Monday, July 31, 2023 after market close.

ON DEALS AND CORPORATE ISSUES

  • Fortuna Silver Mines Inc., announced that it will release its unaudited financial statements and Management Discussions & Analysis (MD&A) for the second quarter 2023 on Wednesday, August 9, 2023, after the market closes (San Jose Mine, Oaxaca).
  • Tocvan Ventures Corp., entered into a binding letter of intent with a private title owner for the 100% acquisition of 2,172.7 ha immediately adjacent and north of its Pilar Gold-Silver Project Sonora, Mexico. Prior to closing a definitive agreement, the acquisition is subject to a 60-day due diligence period effective July 25, 2023.  Terms of the agreement include a cash payment of USD $4M and USD $2.5M in common shares which should be issued over the 5-year term of the agreement. A total minimum work commitment of USD $1 million USD is considered over the agreement. The title owner will retain a 2% NSR on the properties acquired. After the initial 5-year term the company can elect to extend the agreement an additional 10 years by starting advanced royalty payments or purchase full title ownership through an additional cash payment of USD  $500K. On Closing of a Definitive Agreement, an initial payment of USD $250K will be made. 

ON SOCIAL RESPONSIBILITY

  • Fortuna Silver Mines Inc., published its fifth annual sustainability report, which details the Company´s performance on key environmental, social, and governance (ESG) indicators during 2022. Highlights include that 75% of the directors are independent, 37.5% of the directors are female; there are 5,233 full-time workers, including 2,174 direct employees, from which 16.84% of all employees are female and19.15% of management positions are female; USD $5.64M were spent on community-related investments; 41.85% of employees come from local communities, and 7.71% of suppliers sourced from local communities; 50% of the operating mines are compliant with ISO 14001; 63% of water used is recycled: and greenhouse gas (GHG) emissions intensity of 17.94 tonnes of carbon dioxide equivalent (tCO2eq) emitted per thousand tonnes of processed ore. (San Jose Mine, Oaxaca).

  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 diatreme breccia in a project in Durango, Mexico.  Photo by Miguel A Heredia.

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

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By Miguel A Heredia

During the 24th week of the year (June 12th to June 18th, 2023), at least 23 press releases were announced by companies working in Mexico, and 1 news published by the media with nine disclosing deals and corporate issues, seven reporting resources and developments of their properties, three commenting on Mexican issues, two informing on exploration results, two announcing financing issues, and one discussing social issues. ON MEXICO ISSUES, United States asked Mexico to review a claim at a Grupo México mine in the center of the country for an alleged denial of labor rights. Newmont Corporation suspended operations at its Peñasquito mine, in Zacatecas, after the workers’ union announced the strike. Gold Resource, GR Silver and Heliostar reported the best drilling intercepts in Mexico on the third week of June, 2023. ON EXPLORATION, Prismo provided an updated on its exploration programs at Palos Verdes project in Sinaloa and Los Pavitos in Sonora. In Oaxaca, Vortex provided a comprehensive overview of the exploration work completed to date at its Zaachila project. ON MINING, No relevant news.  ON FINANCING, Goldgroup announced proposed settlement of a loan obtained from Accendo Banco S.A (Cerro Prieto, Sonora). Silver Valley announced financing-early warrant exercise incentive program intended to encourage the early exercise of up to 12,897,114 outstanding warrants of the company (La Salada Salar, Zacatecas). ON RESOURCES AND DEVELOPMENT, Heliostar reported results from four holes drilled within and above the High-Grade Panel at the core of its Ana Paula project in Guerrero. Colibri and its JV partner Tocvan announced positive results from its ongoing bulk sample testing at the Pilar project in Sonora. GR Silver announced results of two additional step-out holes drilled at its San Marcial project in Sinaloa.  Heliostar issued a press release to clarify certain of its previous disclosure regarding its Ana Paula project in Guerrero. Prime filed a technical report for its Los Reyes project in Sinaloa. ON DEALS AND CORPORATE ISSUES, Colibri announced that it has been informed by its JV partner Agnico Eagle that the Pitaya Gold project in Sonora has been sold to a third party. Silver Dollar reported that it has terminated the exclusivity period signed with Canasil due to general market conditions. Endeavour announced the appointment of its new Vice President, Operations (Guanacevi mine, Durango). Santacruz reported that it shares will resume trading on Friday June 16, 2023 on the TSX Venture Exchange (Zimapan mine, Hidalgo). Golden Minerals appointed its new Executive Vice President (Rodeo mine, Durango). SilverCrest reported results from its annual general meeting of shareholders (Las Chispas Mine, Sonora). Kootenay declared that now it owns 100% of Columba property in Chihuahua after completing the final property payment. Gold Resource announced the resignation of one of its independent Directors of the Board of Directors (Don David Mine, Oaxaca). ON SOCIAL RESPONSIBILITY, SilverCrest released its inaugural 2022 Environmental, Social, and Governance (ESG) Report (Las Chispas mine, Sonora).

ON MEXICO ISSUE

  • United States asked Mexico to review a claim at a Grupo México mine in the center of the country for an alleged denial of labor rights, within the framework of the North American trade agreement, T-MEC, the US Department of Labor. The San Martín mine in Zacatecas owned by Industrial Minera México SA de CV, a subsidiary of the Americas Mining Corp. branch of Grupo México, has a labor complaint issued by the United States government, for denying workers the right to syndical freedom. The petition alleges the violation of the United Steelworkers and the National Union of Mining, Metallurgical, Steel and Similar Workers of the Republic of Mexico (Los Mineros)’ rights as a holder of the collective bargaining agreement at the San Martín mine and the hiring of workers to replace striking workers in violation of the collective bargaining agreement and Mexican law. The US government investigation revealed evidence of violations of the Los Mineros’ collective bargaining rights that warranted a request for review under the USMCA.
  • Newmont Corporation suspended operations at its Peñasquito mine, in Zacatecas, after the workers’ union announced the strike. The reason for this conflict is a fight over a profit-sharing agreement, the miner said in a statement. Newmont added that at the end of May the company paid the workers the equivalent of 10 percent profits, in accordance with the Law. The Union notified the Company of a strike action demanding an increase in the uncapped profit sharing benefit provided for in the Collective Bargain Agreement (CBA) from 10 percent to 20 percent, representing a 100 percent increase. In response to the strike notice, Minera Peñasquito suspended operations in a safe and orderly manner. Essential activities related to safety, security and environmental monitoring and protection continue. This is the third labor dispute since Peñasquito was purchased by Newmont in 2019. Newmont remains willing to participate in conciliation meetings to reach a resolution in accordance with the CBA, and will continue to adhere to legal procedures, respecting the rights of all its employees, inviting the Union to engage in a constructive dialogue, and providing the authorities with all requested information.
  • Gold Resource Corporation, GR Silver Mining Ltd., and Heliostar Metals Ltd., reported the best drilling intercepts in Mexico on the third week of June, 2023. Details are shown in the table below:

ON EXPLORATION

  • Prismo Metals Inc., provided an updated on its exploration programs at Palos Verdes project in Sinaloa and Los Pavitos in Sonora. Highlights at Palos Verdes project in Sinaloa include an ongoing 2,500m drilling program; 5 holes have been completed for a total of 727m; samples from the three first holes have been submitted to the lab for analysis; and a rock chip sample from mapped veins returned an assay of 840 g/t AgEq (700 g/t Ag and1.68 g/t Au) over a sample width of 1m. Highlights at Los Pavitos project in Sonora include 295 meters of trenches constructed and sampled with assay results received for 96.7 meters; an interval of 0.44 g/t Au over 10m in trench ZSC9; high grade silver assays in surface sampling in northeast Santa Cruz area; and a 2,500m drill program to start by the end of June, 2023.
  • Vortex Metals Inc., provided a comprehensive overview of the exploration work completed to date at its Zaachila project in Oaxaca. “The company is advancing towards the submission of an Environmental Impact Assessment (EIA) to the Federal Environmental Office, The Secretariat of Environment and Natural Resources (SEMARNAT), therefore fulfilling the Mexican government’s requirements for proposed drill targets.  The company believes the EIA will be completed and submitted within the next 3 to 4 months, encompassing a refined definition of the drill targets at Zaachila. Following its successful submission, Vortex will focus on obtaining the drill program approval from the Mexican government”.

ON MINING

  • No relevant news.

ON FINANCING

  • Goldgroup Mining Inc., announced proposed settlement of a loan obtained from Accendo Banco S.A., Multiple Banking Institution in 2020.  In June 2020, the Company’s subsidiary, Minas de Oroco Resources, S.A. de C.V. completed a definitive loan facility agreement with Accendo in the amount of USD $3M at a rate of 12% per annum with a final repayment date of 36 months from the date of the first disbursement. “The company guaranteed the Accendo Loan on behalf of Minas de Oroco. The amount currently outstanding under the Accendo Loan is approximately USD $185M. The debt underlying the Accendo Loan has been acquired by Minera Cerro Esperanza S.A de C.V. (MER), a wholly owned subsidiary of Calu Opportunity Fund LP (Calu). Calu is a shareholder and investor in the Company having acquired 1,177,500 Common Shares and having loaned the Company USD $2.16M (the Calu Loan). The Company will be seeking shareholder approval for the conversion of the Calu Loan into Common Shares of the Company at the Shareholders Meeting, which approval shall exclude any votes cast by Calu. MER contacted the Company on April 26, 2023 seeking repayment of the Accendo Loan. As the assets of Minas de Oroco are currently the only operating assets of the Company, the seizure of these assets would effectively place the Company into insolvency unless another arrangement was made. Further to discussions with MER, the Company is proposing to enter into a Settlement Agreement and an Exploitation and Option to Purchase Agreement, subject to approval of minority shareholders at the Meeting, pursuant to which the Company will deliver the assets of Minas de Oroco to MER in full satisfaction of the Accendo Loan and the Company is provided the right to operate the assets of Minas de Oroco and to purchase the assets in the future” (Cerro Prieto mine, Sonora).
  • Silver Valley Metals Corp., announced financing-early warrant exercise incentive program intended to encourage the early exercise of up to 12,897,114 outstanding warrants of the company. The Eligible Warrants were issued by the Company pursuant to a private placement financing completed on January 3, 2023.  The Eligible Warrants are exercisable to acquire one common share of the Company at a price of $0.15 per share, with 9,297,114 Eligible Warrants expiring November 17, 2024 and 3,600,000 Eligible Warrants expiring January 3, 2025 (La Salada Salar, Zacatecas).

ON RESOURCES AND DEVELOPMENT

  • Heliostar Metals Ltd., reported results from four holes drilled within and above the High-Grade Panel at the core of its Ana Paula project in Guerrero. “This is the area of the deposit that Heliostar believes has the potential to increase grade significantly. This drill program will evaluate Ana Paula’s ability to host a high-margin, underground gold mine development opportunity”. Hole AP-23-293 encountered 6 g/t Au over 129.2m, including 13.4 g/t Au over 46m; hole AP-23-294 intersected 2.1 g/t Au over 67.2m, including 6.4 g/t Au over 13.95m; hole AP-23-295 encountered 2.6 g/t Au over 41.5m, including 4.9 g/t Au over 5.5m, plus 3.7 g/t Au over 8m; and hole AP-23-296 with 1.9 g/t Au over 26m, including 13.6 g/t Au over 2m.
  • Colibri Resource Corporation and its JV partner Tocvan Ventures Corp., announced positive results from its ongoing bulk sample testing at the Pilar project in Sonora. Preliminary results from the leaching process ongoing confirm that the process is actively recovering gold and silver; gold and silver is reported in initial testing of carbon filters; and solution samples assayed at two separate certified labs confirm grade.  Regarding the fine fraction samples (to be used for Gravity Recovery and Agitated Leach Test), the new samples range between 1.2 and 4.9 g/t Au, weighted mean of 2.1 g/t Au; the silver values range between 5 and 29 g/t Ag, weighted mean of 14.8 g/t Ag; leach study returned 95-99% recovery of gold, 73-79% recovery of silver; and metallic screen results show 12.4 to 14.1% of the gold is coarse (+140 mesh).
  • GR Silver Mining Ltd., announced results of two additional step-out holes drilled at its San Marcial project in Sinaloa. Hole SMS23-03 intersected 111 g/t Ag, 0.01 g/t Au, 0.1% Pb, and 0.1% Zn over 17.3m, including 640 g/t Ag, and 0.03 g/t Au over 1.7m, plus 132 g/t Ag, 0.02 g/t Au, and 0.1% Zn over 6.3m, plus  134 g/t Ag, 0.11 g/t Au, 0.1% Pb, and 0.4% Zn over 35.3m. Hole SMS23-04 encountered 32 g/t Ag, 0.03 g/t Au, 0.1% Pb, and 0.1% Zn over 15m. “The wide silver intervals intersected in holes SMS23-03 and SMS23-04 continue to support the potential for extension of the wide mineralization geometry along strike. The drilling program, with two additional drill holes (for a total of six), aims to extend the footprint of the SE Area Discovery Zone for an additional 450 m along strike to the southeast, outside the Mineral Resource”.
  • Heliostar Metals Ltd., issued a press release to clarify certain of its previous disclosure regarding its Ana Paula project in Guerrero. The Company previously disclosed statements which could constitute an economic analysis of its intended re-scoping of the Ana Paula Project. The Company wishes to retract the Disclosure. The Company has not completed an economic analysis on the re-scoping of the Ana Paula Project and the Disclosure is not supported by a technical report in compliance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects. The Company advises readers not to rely on the Disclosure.
  • Prime Mining Corp., filed a technical report for its Los Reyes project in Sinaloa, for the updated mineral resource estimate (MRE) reported on May 2, 2023.  The addition of 100,000m of Prime drilling has doubled the current MRE compared to the April 2020 resource.  The table below shows the updated open pit 2023 MRE:

The MRE has a high-grade open pit mill resource and a lower grade heap leach portion.  The MRE includes drilling completed before December 31, 2022 from only the three main zones at Los Reyes: Guadalupe, Z-T and Central. This MRE does not include positive results from: Mariposa, Las Primas and Fresnillo. With ongoing drilling success, the Company believes there is significant potential to expand the MRE.

ON DEALS AND CORPORATE ISSUES

  • Colibri Resource Corporation announced that it has been informed by its JV partner Agnico Eagle Mining that the Pitaya Gold project in Sonora has been sold to a third party. In 2019, Colibri signed an agreement with Agnico to sell its 23% interest to Agnico or another buyer for a minimum of USD $500K. In 2020, Colibri was advanced USD $300K from Agnico which was secured by Colibri´s ownership of the JV company. Colibri will receive USD $500K from the sale less the outstanding loan principal and interest owed.
  • Silver Dollar Resources Inc., reported that it has terminated the exclusivity period signed with Canasil Resources Inc., due to general market conditions. “The purpose of the Exclusivity Agreement was to give Silver Dollar the opportunity to review Canasil’s assets and consider a corporate merger. Termination of the exclusivity period does not affect the separate Option Agreement between the parties, whereby Silver Dollar can earn a 100% interest in Canasil’s Nora silver-gold property”. Pursuant to the agreements, Canasil now has 60 days to repay the $200K non-interest-bearing loan Silver Dollar provided in return for the exclusivity period and the Nora Option.
  • Endeavour Silver Corp., announced the appointment of its new Vice President, Operations, to oversee the Company´s underground mining operations in Mexico (Guanacevi mine, Durango; Bolañitos mine, Guanajuato).
  • Santacruz Silver Mining Ltd., reported that it shares will resume trading on Friday June 16, 2023 on the TSX Venture Exchange, following the cease trade order being lifted by the British Columbia Securities Commission and the Ontario Securities Commission on Friday June 9, 2023 (Zimapan mine, Hidalgo).
  • Golden Minerals Company appointed its new Executive Vice President Pablo Castaños, who will be joining the company on July 1, 2023 (Rodeo mine, Durango).
  • SilverCrest Metals Inc., reported results from its annual general meeting of shareholders. The company also announced that independent consultants are continuing to advance the Updated Technical Report. This work is progressing well, with the results from this study now expected to be released in July 2023 (Las Chispas Mine, Sonora).
  • Kootenay Silver Inc., declared that now it owns 100% of Columba property in Chihuahua after completing the final property payment. The final payment of USD $215K was made and paid in cash on May 12, 2023. The company has paid a total of USD $3.29M in staged payments (of which USD $215K was paid in common shares of the Company, commencing November 2018 to earn 100% ownership. The vendor retains a 2% royalty of which 1% can be purchased by the Company for USD $750K.

ON SOCIAL RESPONSIBILITY

  • SilverCrest Metals Inc., released its inaugural 2022 Environmental, Social, and Governance (ESG) Report. The Company’s principal focus is its Las Chispas Operation located in Sonora, Mexico. “This report reflects Silver Crest’s dedication to creating a strong sustainability framework and provides stakeholders with a comprehensive overview of the Company’s ESG performance and goals”.

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, phyllic alteration (quartz-sericite-pyrite) in an intrusive rock in a prospect in Tamaulipas, Mexico.  Photo by Miguel A Heredia.