The Mining and Exploration News in Mexico: Highlights on the First Week of May, 2022. 

Phyllic alteration

By Miguel A Heredia

During the 18th week of the year (May 2nd to May 8th, 2022), at least 23 press releases were announced by companies working in Mexico, and 6 news published by the media, with ten reporting resources and developments of their properties, six commenting on Mexican issues, four disclosing deals and corporate issues, four informing on exploration results, three communicating production and financial results, and two discussing social issues. ON MEXICO ISSUES, Torex Gold announced the investment of USD $848M to develop its Media Luna project in Guerrero. Expo Minero Chihuahua 2022 closed its doors with the attendance of 15,610 people. Arcelor Mittal announced that it will invest USD $150M to boost the iron mining in Michoacán. According to Miner Deck, one company working in Mexico participated in the best eight gold intercepts of the week, and two in the best seven silver intercepts of the week. ON EXPLORATION, In Sonora, Aztec Minerals-Kootenay JV released results from California and Jasper targets within its Cervantes project, and Canuc provided an update on its exploration program at its San Javier project. In Chihuahua, Kootenay announced that it will commence a 15,000m drilling program at its Columba project. In Coahuila, Monumental announced the results of a geophysical survey recently completed at its Jemi Heavy Rare Earth Elements project. ON MINING, Altaley reported Q4, and full year 2021 production and financial results from its Campo Morado mine in Guerrero. Coeur Mining reported Q1, 2022 production and financial results from its Palmarejo mine in Chihuahua. Santacruz reported Q4 and full year 2021 consolidated production and financial results from their Mexican operation mines. ON FINANCING, no relevant news.  ON RESOURCES AND DEVELOPMENT, Capitan Mining released results from 5 RC holes collared at its Jesus Maria Silver Zone at the Cruz de Plata project (former Peñoles project) in Durango. Zacatecas Silver received permits for 30 drill pads at El Cristo Vein System within its Zacatecas property. Sonoro Gold filed an Environmental Impact Statement or Manifestación de Impacto Ambiental (MIA) for its Cerro Caliche property in Sonora.  Orex-Pan American Silver JV received a permit to drill 2,500-3,000m at its Sandra project in Durango. Southern Silver reported drilling results from its Cerro Las Minitas project in Durango. Silver Dollar released the remaining assay results from the phase 1 drilling program completed at its la Joya project in Durango. Sierra Madre reported results of the last four holes collared at its Tepic project in Nayarit. Golden Tag announced results from 2 holes drilled at its San Diego project in Durango. Guanajuato Silver reported drill results from its ongoing exploration programs at its El Cubo mine and El Pinguico projects in Guanajuato. Prime Mining announced new results from 17 holes drilled at Zapote North and Mariposa areas within its Los Reyes project in Sinaloa. ON DEALS AND CORPORATE ISSUES, Golden Minerals announced the appointment of its COO (Rodeo project, Durango). Vizsla announced the appointments of its COO and VP of Exploration (Panuco project, Sinaloa). Orogen and the Riverside-BHP JV signed an option agreement for the Llano de Nogal project in Sonora. ON SOCIAL RESPONSIBILITY, Esperanza Silver de México obtained the support of the Tetlama community in Morelos for the Esperanza project. Alamos Gold has generated 2,200 new jobs in the last two years for the construction of its La Yaqui Grande mine in Sonora.

ON MEXICO ISSUE

  • Torex Gold Resources Inc., announced the investment of USD $848M to develop its Media Luna project in Guerrero to bring it into commercial production by the end of 2024. The initial capital investment in the Media Luna Project includes USD $85M of underground mine development during the pre-commercial mining period, between Q4, 2023 and Q4, 2024. The initial capital required to develop the Media Luna Project excludes USD $124M of direct project expenses incurred before April 1, 2022, of which USD $37M are related to the Guajes Tunnel and USD $28M to the development of the Upper and Lower South Portal. Of the direct expenses of the project, the largest capital expenditures are related to the development of the underground mine (USD $173M), access to the deposit through the Guajes Tunnel (USD $76M), as well as the Upper and Lower South Portal (USD $40M), improvements to the process plant (USD $98M) and tailings/paste plant (USD $78M). Of indirect expenses, the largest components are contingency costs (USD $100M).
  • Expo Minero Chihuahua 2022 closed its doors with the attendance of 15,610 people. For four days, from April 28 to May 1, the attendees learned about the importance of the mining industry in the development of Mexico and its usefulness in everyday life.
  • Arcelor Mittal Mexico announced that it will invest USD $150M to boost the iron mining in Michoacán. The company also stated that it will increase the domestic rolled steel production from 2.5M to 5.3M tonnes.
  • According to Miner Deck, one company working in Mexico was in the best eight drill intercepts of the week.  Aztec Minerals-Kootenay JV was eight with 136.8m @ 1.486 g/t Au at Cervantes project in Sonora.
  • According to Miner Deck, two of the best silver drill intercepts of the week were drilled by companies working in Mexico. Golden Tag was first with 395m @ 35 g/t Ag at San Diego project in Durango, and Capitan Mining was seventh with 16.8m @ 291 g/t Ag at Cruz de Plata project in Durango.

ON EXPLORATION

  • Aztec Minerals Corp – Kootenay Silver Inc. JV released results from the California and Jasper targets within its Cervantes project in Sonora. Drilling highlights include hole JAS22-001 with 0.33 g/t Au over 9.1m, with 150m visible Cu oxides and secondary sulphides in mineralized quartz feldspar porphyry intrusive, sediments and hydrothermal breccia; hole CAL22-017 with 0.31 g/t Au over 24.3m, and 1.65 g/t Au over 6.1m in mineralized quartz feldspar porphyry intrusive, sediments and hydrothermal breccia; hole CAL22-016 with 0.47 g/t Au over 56.2m, and 0.35 g/t Au over 13.7m in mineralized porphyries and hydrothermal breccia; and hole CAL22-015 with 0.42 g/t Au over 68.4m, and 2.25 g/t Au over 10.6m in mineralized porphyries and hydrothermal breccia. These drill results extended the known mineralized zone at depth and over 350m to the north onto the California North target and also to the south on the eastern end of the California zone. The company reported that the phase 2 RC drilling program at the Cervantes property is completed and consisted of 26 holes totalling 4,649m.
  • Canuc Resources Corporation provided an update on its exploration program at its San Javier project in Sonora. On the Silver Mountain Zone, the 63-sample grid covered the central part of a NE-SW trending magnetic high in the north part of the San Javier project area. Within the soil grid, samples ranging from 5,123 to 36,671 ppb Ag (5 to 36 g/t) define a 50 to 100 m wide trend that extends for approximately 300 m across the grid. Only 7 of the 63 samples collected contained less that 1 g/t Ag and. The Ag anomaly is accompanied by a modest Au anomaly having values ranging from 38.6 to 87.5 ppb within a relatively high 2.0 to 32.5 background. Only 9 samples contained less than 5.0 ppb Au. On the Gold Zone, the company excavated 3,295m of trenches ranging from 65m to 638m in width. From these trenches, 1,829 channel samples have been collected and additional 46 samples have been collected from various locations within the trend. Results have been reported only on the first 3 trenches which returned elevated gold and copper values. Sampling results are still pending for the rest of the trenches. On the Copper-Gold Stockwork Zone, a total of 22 samples were collected from 3 locations on the north flank of a donut shaped magnetic high in the north–central part of the property. Average grade of the sampling is 0.38% Cu, 0.29 g/t Au, and 3.9 g/t Ag. Canuc plans to cover with soil samples the southwest extension of the strong Ag anomaly referred as Silver Anomaly target; to carry out a detailed mapping on at least 40 know mineralized zones within the property, as well as along the 11 trenches excavated across the Gold Zone, and in the area of the Stockwork Copper-Gold Zone, to provide necessary information in advance of drilling.
  • Kootenay Silver Inc., announced that it will commence a 15,000m drilling program at its Columba project in Chihuahua. Initial focus of this program will be on deeper drill testing on the F Vein and expanding on the D and B Vein intercepts, as well as explore the JZ Zone located 700 meters east of the F Vein; and the East Block located 200 meters east form the JZ Zone.
  • Monumental Minerals Corp., announced the results of a heli-borne magnetic, radiometric, and very-low frequency electromagnetic (VLF-EM) geophysical survey recently completed at its Jemi Heavy Rare Earth Elements (HREE) project in Coahuila. The geophysical survey confirmed that a significantly larger area of the property is prospective for HREE (from approximately 1 km to 10 km of prospective strike length), and defined two parallel 8 km arcuate anomalies that occur along the south and west margin of the Sierra La Vasca intrusion complex. The company announced that the next step is to carry out a rapid evaluation and prioritization of targets for diamond drill testing.

ON MINING

  • Altaley Mining Corporation reported Q4, and full year 2021 production and financial results from its Campo Morado mine in Guerrero. In Q4, 2021 the company processed 183,091 tonnes to produce 12,209 tonnes of Zn concentrate grading 46% Zn with metallurgical recovery of 71%, and 2,691 tonnes of Pb concentrate grading 22% Pb with metallurgical recovery of 30% respectively, at cash and all in sustaining cost (AISC) of USD $0.74 and USD $0.95 per Lb Zn respectively. Altaley reported gross revenues of CAD $29.7M, mine operating profit of CAD $10.1M, income for the period of CAD $20.6M, and cash of CAD $3.04M. In the full year 2021, the company processed 689,963 tonnes to produce 45,778 tonnes of Zn concentrate grading 46% Zn, 2.12 g/t Au, and 658 g/t Ag, with metallurgical recovery of 71% for Zn, and 9,936 tonnes of Pb concentrate grading 22%, 1.65% Cu, 6.08 g/t Au, and 776 g/t Ag, with metallurgical recovery of 29% for Pb, at cash and AISC of USD $0.60 and USD $0.83 per Lb Pb respectively. Altaley reported gross revenues of CAD $98.4M, mine operating profit of CAD $34.25M, income for the period of CAD $36.26M, and cash of CAD $3.04M.
  • Coeur Mining Inc., reported Q1, 2022 production and financial results from its Palmarejo mine in Chihuahua. The company milled 565,211 tonnes of 1.74 g/t Au and 120 g/t Ag with metallurgical recoveries of 90.6% and 83% respectively to produce 28.9K Oz Au and 1.8M Oz Ag. It sold 28.2K Oz Au and 1.79M Oz Ag during the Q1, 2022 period. Coeur reported metal sales of USD $83.1M; cost applicable to sales of USD $730 and USD $12.43 per Oz Au and Oz Ag respectively; cash flow from operating activities of USD $34.3M; sustaining capital expenditures of USD $13.6M; and free cash flow of USD $20.7M. The company announced that the full year 2022 production is expected to be 100K-110K Oz Au and 6M-7M Oz Ag, and the cost applicable to sales is expected to be USD $750-850 per Oz Au and USD $13.50-14.50 per Oz Ag.
  • Santacruz Silver Mining Ltd., reported Q4 and full year 2021 consolidated production and financial results from their Mexican operation mines (Zimapan, Hidalgo and Rosario San Luis Potosi). In Q4,2021, the company milled 192,901 tonnes to produce 318.4K Oz Ag, 2.27M Lb Pb, 7.7M Lb Zn, and 1.1M Lb Cu (or 842K Oz AgEq with an average grade of 184 g/t AgEq). Santacruz reported for this period revenues of USD $13.8M, gross profit of USD $621K, a net loss of USD $10.45M and an adjusted EBIDTA loss of USD $4,47M. In the full year 2021, it milled 730,412 tonnes to produce 1.29M Oz Ag, 132Oz Au, 8.4M Lb Pb, 28M Lb Zn, and 4.07M Lb Cu (or 3.2M Oz Ag with an average grade of 185 g/t AgEq). The company reported for the full year 2021 revenues of USD $53.3M, gross profit of USD $10.3M, a net loss of USD $11.56M, and an adjusted EBIDTA loss of USD $713K.

ON FINANCING

  • No relevant news.

ON RESOURCES AND DEVELOPMENT

  • Capitan Mining Inc., released results from 5 RC holes collared at its Jesus Maria Silver Zone at the Cruz de Plata project (former Peñoles project) in Durango. Drilling highlights include hole 21-JMRC-10 (at the Upper Zone) with 291 g/t Ag, 0.15 g/t Au, 0.08% Pb, and 0.08% Zn (332 g/t AgEq) over 16.8m, including 478 g/t Ag, 0.56 g/t Au, 0.3% Pb, and 0.2% Zn (539 g/t AgEq) over 9.1m, including 2,217 g/t Ag, 1.77 g/t Au, 1.1% Pb, and 0.4% Zn (2,406 g/t AgEq) over 1.5m; plus (at the Lower Zone) 71 g/t Ag, 0.4 g/t Au, 0.8% Pb, and 1.6% Zn (186 g/t AgEq) over 13.7m, including 114 g/t Ag, 0.67 g/t Au, 1.3% Pb, and 2.7% Zn (309 g/t AgEq) over 7.6m; hole 21-JMRC-06 (at the Upper Zone) with 100 g/t Ag, 0.12 g/t Au, 0.2% Pb, and 0.8% Zn (146 g/t AgEq) over 13.7m, including 152 g/t Ag, 0.17 g/t Au, 0.5% Pb, and 2.4% Zn (271 g/t AgEq) over 3m, including 154 g/t Ag, 0.17 g/t Au, 0.6% Pb, and 3.6% Zn (319 g/t AgEq), plus (at the Lower Zone) with 145 g/t Ag, 0.14 g/t Au, 0.3% Pb, 0.6% Zn (189 g/t AgEq) over 4.6m, including 380 g/t Ag, 0.28 g/t Au, 0.5% Pb, and 0.8% Zn (448 g/t AgEq) over 1.5m; and hole 21-JMRC-08 with 44 g/t Ag, 0.36 g/t Au, 0.9% Pb, and 1.3% Zn (149 g/t AgEq) over 7.6m, including 62 g/t Ag, 0.48 g/t Au, 1.4% Pb, and 2.1% Zn (218 g/t AgEq) over 4.6m, and including 92 g/t Ag, 0.05 g/t Au, 2.9% Pb, and 4.5% Zn (350 g/t AgEq) over 1.5m.
  • Zacatecas Silver Corp., received permits for 30 drill pads at El Cristo Vein System within its Zacatecas property to drill test multiple veins within a zone of dilation that is almost 4 km long and up to 600m wide.  The cumulative strike length of all veins at El Cristo is at least 12km long. A total of 2,500m of diamond drilling has been designed in this initial phase of drilling at El Cristo Vein System.
  • Sonoro Gold Corp., filed an Environmental Impact Statement or Manifestación de Impacto Ambiental (MIA) for its Cerro Caliche property in Sonora. “Under Mexican law, mining construction and operation activities require an approved MIA, as well as a Change of Land Use permit, or Autorización en Cambio de Uso de Suelo (“ETJ”), from the Mexican federal permitting authority, Secretaría de Medio Ambiente y Recursos Naturales (“SEMARNAT”). The company is currently completing the required documentation for the Change of Land Use application and anticipates filing with SEMARNAT in the near future.
  • Orex Minerals Inc. – Pan American Silver Corp JV received a permit to drill its Sandra project in Durango. Phase-I of this new drilling program will consist of approximately 2,500 to 3,000m. Orex conducted a geological mapping and litho geochemical sampling program over the combined 6,970 hectares of the project, where multiple drill target areas have been identified.
  • Southern Silver Exploration Corp., reported drilling results from the North Felsite and El Sol targets on its Cerro Las Minitas project in Durango. Drilling highlights include hole 21CLM-185 with 185 g/t Ag, 0.6 g/t Au, 0.1% Cu, 3.1% Pb, and 0.6% Zn (358 g/t AgEq or 9.1% ZnEq) over a true width (TW) of 0.7m at the North Felsite HW zone, plus 101 g/t Ag, 0.3 g/t Au, 0.8% Cu, 2.4% Pb, and 3.3% Zn (1,321 g/t AgEq or 33.5% ZnEq) over a TW of 1.8m, including 1,785 g/t Ag, 0.5 g/t Au, 1.4% Cu, 3.1% Pb, and 5.9% Zn (2,309 g/t AgEq or 56.6% ZnEq) over a TW of 1m at the North Felsite skarn area; hole 22CLM-184 with 7 g/t Ag, 1.1 g/t Au, 0% Cu, 0.1% Pb, and 0.2% Zn (112 g/t AgEq or 2.8% ZnEq) over a TW of 11.7m at the North Felsite HW zone, including 19 g/t Ag, 5.6 g/t Au, 0% Cu, 0.3% Pb, and 0.1% Zn (495 g/t AgEq or 12.5% ZnEq) over a TW of 1m, plus 121 g/t Ag, 0.2 g/t Au, 0.1% Cu, 1.9% Pb, and 6.5% Zn (460 g/t AgEq or 11.7% ZnEq) over a TW of 0.3m at North Felsite Skarn, plus 117 g/t Ag, 0.1 g/t Au, 0.1% Cu, 1.1% Pb, and 1% Zn (213 g/t AgEq or 5.4% ZnEq) over a TW of 6m, including 301 g/t Ag, 0.2 g/t Au, 0.5% Cu, 1.1% Pb, and 10.7% Zn (830 g/t AgEq or 21% ZnEq) over a TW of 0.3m, plus 302 g/t Ag, 0.2 g/t Au, 0.4% Cu, 2.9% Pb, and 0.7% Zn (485 g/t AgEq or 12.3% ZnEq) over a TW of 0.8m. “The North Felsite target is located on the eastern side of the Cerro Las Minitas, approximately 400m to the northwest of the La Bocona and Mina Piña shafts, in an area that was not included in the most recent NI43-101 Mineral Resource update on the property. New drilling tested the continuity of mineralization in both the main Ag-Pb-Zn Skarn as well as strongly Au-enriched hanging wall zone.
  • Silver Dollar Resources Inc., released the remaining assay results from the phase 1 drilling program completed on the underexplored Noria portion at its la Joya project in Durango. This phase of drilling consisted of 11 core holes totaling 2,424m. Drilling highlights include hole NOR-22-008 with 41 g/t Ag, 0.11 g/t Au, 0.05% Cu, 0.2% Pb, and 0.6% Zn (90 g/t AgEq) over 125.3m, including 137 g/t Ag, 0.23 g/t Au, 0.14% Cu, 0.4% Pb, and 1.7% Zn (268 g/t AgEq) over 10.47m; and hole NOR-22-009 with 3 g/t Ag, 0.66 g/t Au, 0.03% Cu, 0% Pb, and 0.03% Zn (60 g/t AgEq) over 58.84m. “Phase II drilling is now in progress and targeting the wide intervals of mineralization intersected in the new Phase I discoveries”.
  • Sierra Madre Gold and Silver Ltd., reported results of the last four holes collared at its Tepic project in Nayarit. Drilling highlights include hole TDH014 with 322 g/t Ag and 0.96 g/t Au (424 g/t AgEq) over 6.35m, including 544 g/t Ag and 1.5 g/t Au (656 g/t AgEq) over 3.85m, plus 332 g/t Ag and 1.85 g/t Au (470 g/t AgEq) over 6.05m, including 786 g/t Ag and 3.78 g/t Au (1,070 g/t AgEq) over 2.3m. Holes were designed to test areas adjacent to and outside of the areas that were volumetrically included in historic resource estimations. “The Tepic drill holes are being incorporated into the project’s 3-D database and model to plan the continuation of the Phase 2 drilling at Tepic. Drill pads have already been constructed on the Taunas targets to drill the first test holes within the newly discovered area on the eastern portion of the project”.
  •  Golden Tag Resources Ltd., announced results from 2 holes drilled at its San Diego project in Durango. Key highlights include hole 22-65A (Rata Zone) with 0.02 g/t Au, 1,350 g/t Ag, 1.4% Pb, 3% Zn, and 0.35% Cu (1,556 g/t AgEq) over 0.6m, plus 0.03 g/t Au, 981 g/t Ag, 2.4% Pb, 2.5% Zn, and 0.35% Cu (1,194 g/t AgEq) over 0.65m, plus 0.11 g/t Au, 210 g/t Ag, 0.6% Pb, 1.1% Zn, and 0.05% Cu (288 g/t AgEq) over 1.67m, and plus (at Cata Zone) with 0.12 g/t Au, 197 g/t Ag, 1.2% Pb, 0.7% Zn, and 0.06% Cu (280 g/t AgEq) over 0.85m; and hole 22-65B (Rata Zone) with 0.08 g/t Au, 286 g/t Ag, 0.2% Pb, 0.3% Zn, and 0.04% Cu (312 g/t AgEq) over 1.20m, plus (at Cata Zone) with 0.27 g/t Au, 103 g/t Ag, 0.6% Pb, 0.6% Zn, and 0.05% Cu (174 g/t AgEq) over 16.48m, including 0.09 g/t Au, 108 g/t Ag, 0.4% Pb, 0.7% Zn, and 0.05% Cu (163 g/t AgEq) over 2.20m, plus 0.12 g/t Au, 460 g/t Ag, 3% Pb, 2.7% Zn, and 0.19% Cu (690 g/t AgEq) over 2.50m, plus (at CS Play Zone) with 0.11 g/t Au, 135 g/t Ag, 2.9% Pb, 3% Zn, and 0.09% Cu (363 g/t AgEq) over 4.27m, plus (at Fernandez Zone) with 0.05 g/t Au, 35 g/t Ag, 0.4% Pb, 0.8% Zn, and 0.11% Cu (93 g/t AgEq) over 395.1m, including 0.03 g/t Au, 37 g/t Ag, 0.3% Pb, 1.1% Zn, and 0.14% Cu (109 g/t AgEq) over 185.90m. “Combining the results from hole 65B with the results from the previously reported hole 21-58, we can now anticipate that the potential extension of the Fernandez Zone could measure approximately 140 m x 70 m in the horizontal plane and 530 m in the vertical plane.  There are no drill holes to the west of hole 22-65B and thus the Fernandez Zone remains open to the west.” 
  • Guanajuato Silver Company Ltd., reported drill results from its ongoing exploration programs at its El Cubo mine and El Pinguico projects in Guanajuato. Key highlights include hole VP022-002 with 12.90 g/t Au and 1,956 g/t Ag (2,988 g/t AgEq) over a true width (TW) of 0.35m (Arroyo structure), plus 0.21 g/t Au and 31 g/t Ag (47 g/t AgEq) over a TW of 13.55m (Villalpando structure), including 0.76 g/t Au and 115 g/t Ag (176 g/t AgEq) over a TW of 1.15m, plus 0.44 g/t Au and 92 g/t Ag (127 g/t AgEq) over a TW of 0.39m (Villalpando FW structure); hole SC22-001 with 7.56 g/t Au and 42 g/t Ag (647 g/t AgEq) over a TW of 0.30m (680 Vein); hole SC22-002 with 4.49 g/t Au and 276 g/t Ag (636 g/t AgEq) over a TW of 0.13m (Tuberos Vein), plus 2.60 g/t Au and 194 g/t Ag (402 g/t AgEq) over a TW of 0.30m (Poniente Vein); and hole P21-22 with 1.04 g/t Au and 130 g/t Ag (203 g/t AgEq) over a TW of 1.56m (Arroyo structure), including 2.11 g/t Au and 227 g/t Ag (396 g/t AgEq) over a TW of 0.60m, plus 1.15 g/t Au and 193 g/t Ag (285 g/t AgEq) over a TW of 0.24m (Pinguico Vein). “These results serve to build confidence in our understanding of geological controls of high-grade mineralization within the various veins and different zones of our Guanajuato mine holdings. Further, drilling at the El Cubo mine continues to identify mineralization that the Company can quickly build into its near-term mining plans”.
  • Prime Mining Corp., announced new results from 17 holes drilled at Zapote North and Mariposa areas within its Los Reyes project in Sinaloa. “This drilling is targeting the expansion of the Zapote North deposit northwards along the structure and confirming the continuity of mineralization of Mariposa to the south. These holes confirm that gold-silver mineralization extends from Zapote North to Mariposa”. Drilling highlights at Zapote North  include hole 22ZAP-56 with 4.81 g/t Au and 17 g/t Ag over a true width (TW) of 1.7m; hole 22ZAP-66R with 2.42 g/t Au and 24 g/t Ag over a TW of 9.70m, including 4.72 g/t Au and 36 g/t Ag over a TW of 4.2m; hole 22ZAP-67R with 3.83 g/t Au and 14 g/t Ag over a TW of 1.4m; hole 22ZAP-59 with 1.4 g/t Au and 14 g/t Ag over a TW of 8.2m, including 5.55 g/t Au and 22 g/t Ag over a TW of 1.4m; hole 22ZAP-52R with 1.07 g/t Au and 20 g/t Ag over a TW of 19.9m, including  2.62 g/t Au and 28 g/t Ag over a TW of 2.3m, including 3.32 g/t Au and 31 g/t Ag over a TW of 2.3m, plus 0.77 g/t Au and 27 g/t Ag over a TW of 8.2m; hole 22ZAP-68R with 0.68 g/t Au and 13 g/t Ag over a TW of 8.2m, including 2.19 g/t Au and 11 g/t Ag over a TW of 1.2m, plus 0.39 g/t Au and 11 g/t Ag over a TW of 8.2m; and hole 22ZAP-69R with 0.47 g/t Au and 10 g/t Ag over a TW of 6.6m, plus 1.42 g/t Au and 28 g/t Ag over a TW of 5m, including 2.42 g/t Au and 44  g/t Ag over a TW of 2.5m. Drilling highlights at Mariposa include hole 22MA-08 with 1.1 g/t Au and 11 g/t Ag over a TW of 8.3m, including 3.38 g/t Au and 23 g/t Ag over a TW of 0.9m, plus 0.99 g/t Au and 9 g/t Ag over a TW of 5.4m, including 2.05 g/t Au and 11 g/t Ag over a TW of 1.1m, plus 0.69 g/t Au and 9 g/t Ag over a TW of 4.90m; and hole 22MA-09 with 1.55 g/t Au and 15 g/t Ag over a TW of 2.9m, including 5.35 g/t Au and 29 g/t Ag over a TW of 0.60m. “To date for Phase 1 and 2 combined, Prime has drilled 255 holes totalling 64,070 metres (122 in Phase 1 for 25,650 m and 133 holes so far in Phase 2 for 38,420 m)”.

ON DEALS AND CORPORATE ISSUES

  • Golden Minerals Company announced the appointment of its COO, effective May 9, 2022 (Rodeo project, Durango).
  • Vizsla Silver Corp., announced the appointments of its COO and VP of Exploration (Panuco project, Sinaloa).
  • Orogen Royalties Inc. and the Riverside Resources Inc-BHP Group JV signed an option agreement for the Llano de Nogal Copper-Gold porphyry project in Sonora. Riverside can earn a 100% interest by making cash payments of USD $2.48M and USD $5M in cumulative exploration expenditures (CEE) subject to the following schedule: USD $30K (closing of transaction); USD $50K (1st anniversary) and  USD $500K in CEE; USD $50K (2nd anniversary) and USD $1.3M in CEE; USD $100K (3rd anniversary) and $USD $2M (CEE); USD $200K (4th anniversary) and USD $3M (CEE); USD $300K (5th anniversary) and USD $4M (CEE); and USD $1.75M (6th anniversary) and USD $5M (CEE). “During the option period, Orogen and Riverside will jointly retain the right to exercise and retain any Net Smelter Return (NSR) royalty buydown rights with respect to the Suanse claims (0.5% NSR royalty for CAD $1M) and the Coyotes claims (1.5% NSR royalty for USD $1.5M). Once Riverside has exercised its option on Llano de Nogal, Riverside will grant to Orogen a 1% Production Royalty, of which 0.5% can be purchased for USD $10M within 10 years of the exercise date”.

ON SOCIAL RESPONSIBILITY

  • Esperanza Silver de México obtained the support of the Tetlama community to the extent of accompanying the request for federal environmental permits for its operation for the Esperanza project in Morelos. The company determined to promote the project from the beginning hand in hand with the inhabitants since it is based on lands that belong to the community, and showing full respect for their human rights. Esperanza Silver will be delivering the Environmental Impact Statement (MIA) report and the study to propose the change of land use in forest land to the Secretary of the Environment and Natural Resources of the federal government (SEMARNAT) by the end of this year. Currently, the Esperanza Project is in the evaluation stage of the technical studies carried out during 2021 in terms of water and geotechnics. This year will be dedicated to the design of the technical project that will allow establishing the model of the mine’s industrial plant. At this point, both the company and the community will submit the request for an Environmental Manifesto to SEMARNAT, which could occur in mid-2023.
  • Alamos Gold Inc., has generated 2,200 new jobs in the last two years, 700 of them for people hired directly and 1,500 more indirectly for the construction of its La Yaqui Grande mine in Sonora. La Yaqui Grande mine, is in its final stage of construction and will start commercial production during Q3, 2022. The Yaqui Grande mine is already being a development opportunity for communities in the Sierra de Sonora in the municipalities of Sahuaripa, Yécora and Arivechi, among others.

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

On the picture above, phyllic alteration in a porphyry copper prospect in Michoacán Mexico.  Photo by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the First Week of April, 2022. 

Flow banded rhyolite

By Miguel A Heredia

During the 14th week of the year (April 04th to April 10th, 2022), at least 22 press releases were announced by companies working in Mexico, and one news published by the media, with nine reporting resources and developments of their properties, seven informing on exploration results, five communicating production and financial results, one disclosing deals and corporate issues, and one discussing social issues. ON MEXICO ISSUES, no relevant news.  ON EXPLORATION, In Sonora, Silver Spruce reported the approval of an Informe Preventivo for its second drilling permit at its Mezquite project, Ranchero Gold released results from its inaugural drilling program at its Santa Daniela project, and Starcore presented results from its drilling program conducted at its Opodepe project. In Chihuahua, Mammoth presented results from three holes drilled at its Tenoriba project, and Reyna Silver announced results from its 8,000m phase 2 drilling program conducted at its Guigui project. In Durango, Silver Wolf released results from 88 samples collected at its Ana Maria project. In Nayarit, Sierra Madre commenced a maiden drilling program at its La Tigra project. ON MINING, Gatos Silver reported Q1, 2022 production results from its 70%-owned Cerro Los Gatos mine, Chihuahua. GoGold announced Q1, 2022 production results from its Parral Tailings mine in Chihuahua. Mexus completed an open pit test heap leach Au recovery process that produced 278 Oz Au from 6 test pits at its Santa Elena mine in Sonora.  Minera Alamos announced Q1, 2022 production results from its Santana mine in Sonora. Orla presented Q1, 2022 production results from its Camino Rojo project in Zacatecas. ON FINANCING, no relevant news. ON RESOURCES AND DEVELOPMENT, Vizsla reported that it filed on the System for Electronic Document Analysis and Retrieval (SEDAR) an independent technical report on its Panuco project in Sinaloa. Azucar Minerals commenced to drill test a large lithocap target discussed previously at its El Cobre project, Veracruz. GR Silver reported results from three underground drill holes collared at its San Marcial project, Sinaloa. Avino published results from 110 holes drilled on the oxide tailings project at its Avino property in Durango. Golden Tag released results from hole 22-64 drilled at its San Diego mine, Durango. Silver Dollar announced that phase 2 exploration drilling program is underway at its la Joya project in Durango. Silver Viper conducted a TITAN-MT deep-penetrating geophysical survey centered on the El Rubi deposit, Paredones, and El Molino target areas at its La Virginia project in Chihuahua. Starcore provided an update on the diamond drilling program conducted at its San Martin mine in Querétaro. Zacatecas Silver announced results from its ongoing diamond drilling program on the Panuco North and Panuco Central Veins at its Zacatecas project in Zacatecas state.   ON DEALS AND CORPORATE ISSUES, Sailfish provided an update on its previously announced Swordfish silver transaction (Gavilanes project, Durango).  ON SOCIAL RESPONSIBILITY, Esperanza Silver has a Community Engagement Plan to meet the objectives proposed by the New Socially and Environmentally Responsible Mining Model.

ON MEXICO ISSUE

  • No relevant news.

ON EXPLORATION

  • Silver Spruce Resources Inc., reported the approval of an Informe Preventivo by the Mexican government Environmental Authority (SEMARNAT) for its second drilling permit at its Mezquite project in Sonora. The second drilling program will consists of 1,500-2,500m of Reverse Circulation (RC), which include twenty-four new pads on the northern, northwestern and southeastern sections of the property.
  • Ranchero Gold Corp., released results from its 16 holes, Phase 1 inaugural drilling program at the Maíz Azul prospect within its Santa Daniela project in Sonora. All of the 16 holes intersected Au mineralization and were planned to drill test shallow-near surface mineralization. Highlights include hole MA22-10 with 4 g/t Au over 31.5m; hole MA21-14 with 1.2 g/t Au over 21.2m; hole MA22-25 with 1.2 g/t Au over 15.6m, and hole MA21-11 with 1.1 g/t Au over 21m. Mineralization remains completely open at depth since it was only tested at depths of 100-150m below surface. The company is currently designing a second phase of drilling. The plan of this drilling program is to expand La Colmena zone eastward, initiate drill testing of the X-structure target, initiate drilling of new targets identified by the on-going modelling, and start definition drilling. In addition, Ranchero Gold is also advancing its regional reconnaissance program on the entire property. The company has identified from a previous Aster study, nine high-priority targets that warrant follow-up field work. “Ranchero Gold will continue its field investigation in parallel with the work conducted at Maíz Azul with the objective of identifying new drill targets by year-end.
  • Mammoth Resources Corp., presented results from three holes drilled at its Tenoriba project in Chihuahua. The most significant mineralized interval was encountered in hole TEN-21-13 on the Moreno Zone with 0.98 g/t Au and 15 g/t Ag (1.18 g/t AuEq) over 37.5m, including 1.13 g/t Au, 21 g/t Ag, and 0.55% Cu (2.34 g/t AuEq) over 18m.
  • Reyna Silver Corp., announced results from its 8,000m phase 2 drilling program conducted at its Guigui project in Chihuahua. Drilling highlights include hole GG21-31 with 130 g/t Ag, 0.2% Pb, and 0.2% Zn over 2.62m, including 338 g/t Ag, 0.4% Pb, and 0.4% Zn over 0.7m, including 1,040 g/t Ag, 1.5% Pb, and 0.5% Zn over 0.18m, plus 54 g/t Ag, 2.2% Pb, and 9.9% Zn over 3.15m, including 128 g/t Ag, 3.7% Pb, and 16% Zn over 1.85m; hole GG21-30 with 233 g/t Ag, 0.02% Pb, and 0.02% Zn over 2.11m; hole GG21-31 with 105 g/t Ag, 4.9% Pb, and 0.6% Zn over 1.20m; and hole GG21-33 with 106 g/t Ag, 0.9% Pb, and 0.1% Zn over 4.51m. The company reported that the mineralized skarn footprint now exceeds 0.5km2.
  • Silver Wolf Exploration Ltd., released results from 88 grab samples collected at its Ana Maria project in Durango. Highlights include 246 g/t Ag, 0.03% Cu, 4.5% Pb, and 1.7% Zn; 578 g/t Ag, 0.03% Cu, 11.9% Pb, and 0.3% Zn; 442 g/t Ag, 0.04% Cu, 11.4% Pb, and 1.5% Zn; 163 g/t Ag, 0.04% Cu, 6.2% Pb, and 0.5% Zn; 168 g/t Ag, 0.01% Cu, 4.1% Pb, and 0.2% Zn; 1,227 g/t Ag, 0.06% Cu, 25.7% Pb, and 0.6% Zn; 309 g/t Ag, 0.03% Cu, 2.3% Pb, and 4.8% Zn; 1,306 g/t Ag, 0.09% Cu, 20.4% Pb, and 7.4% Zn; and 792 g/t Ag, 0.04% Cu, 16.9% Pb, and 0.6% Zn. Silver Wolf is waiting for the final geophysical data interpretation to better define drill targets for later this year.
  • Sierra Madre Gold and Silver Ltd., commenced a maiden drilling program at its La Tigra project in Nayarit. This is the first ever drill program undertaken within the district and is focused primarily on areas defined by the ongoing trenching program. Trenching highlights include 1.22 g/t Au and 7 g/t Ag (1.3 g/t AuEq) over 11.6m, including 2.52 g/t Au and 10 g/t Ag (2.7 g/t AuEq) over 4.3m; 1.45 g/t Au and 9 g/t Ag (1.57 g/t AuEq) over 12.8m, including 3.22 g/t Au and 35 g/t Ag (3.69 g/t AuEq) over 5.3m; 1.59 g/t Au and 3 g/t Ag (1.63 g/t AuEq) over 24.2m, including 5.58 g/t Au and 4 g/t Ag (5.64 g/t AuEq) over 4.7m; and 1.78 g/t Au and 6 g/t Ag (1.85 g/t AuEq) over 22.9m, including 2.2 g/t Au and 7 g/t Ag (2.3 g/t AuEq) over 7.1m.
  • Starcore International Mines Ltd., presented results from its drilling program conducted at its Opodepe project in Sonora. The drill program consisted of 3,289.6 m in 25 short holes. Drilling highlights include hole OPDS-21-001 with 4.79 g/t AuEq over 6.73m; hole OPDS-21-018 with 2.3 g/t AuEq over 1.91m; and hole OPDS-21-021 with 1.96 g/t AuEq over 2.19m. The first stage of drilling was focused on the upper part of the veins and has been considered as recognition drilling. “However, in this year 2022, the drilling is focused on the zone of the veins which the geologists have considered as favorable zones to find economic reserves”.

ON MINING

  • Gatos Silver Inc., reported Q1, 2022 production results from its 70%-owned Cerro Los Gatos mine, Chihuahua. The company milled 234,985 tonnes of 353 g/t Ag, 0.3 g/t Au, 2.2% Pb, and 4.1% Zn at metallurgical recoveries of 89.7%, 57.1% , 89.2%, and 64.3% respectively, to produce 2.39M Oz Ag, 1.3K Oz Au, 10.3M Lb Pb, and 13.8M Lb Zn. Gatos reported over USD $40M in cash as of March 31, 2022.
  • GoGold Resources Inc., announced Q1, 2022 production results from its Parral Tailings mine in Chihuahua. The company produced 186,655 Oz Ag, 2,791 Oz Au, and 280K Lb Cu (455,991 Oz AgEq).
  • Mexus Gold US completed an open pit test heap leach Au recovery process that produced 278 Oz Au from 6 test pits at its Santa Elena mine in Sonora.  The company is looking for a mining company to joint venture with at its Santa Elena mine. Mexus believes that the property contains > 1M Oz Au. It stated that is open to also JV its Ures Au-Ag-Cu property in Sonora.
  • Minera Alamos Inc., announced Q1, 2022 production results from its Santana mine in Sonora. It mined 600K tonnes to produce 3,390 Oz Au. Cumulative Au recovery from mineralization under leach for more that 30 days is now approximately 75% with additional recovery ongoing. The company reported that the total of Au inventory moved to leach pad to date is 14K Oz. In addition, the company announced that site preparation activities were initiated at the Nicho Main Zone with a goal to start mining activities at that deposit later in Q2-2022.
  • Orla Mining Ltd., presented Q1, 2022 production results from its Camino Rojo project in Zacatecas. The company mined 684,255 tonnes and processed 539,379 tonnes of 0.8 g/t Au to produce 23,031 Oz Au. Gold guidance for the full year 2022 is maintained by Orla at 90-100 Oz Au.

ON FINANCING

  • No relevant news.

ON RESOURCES AND DEVELOPMENT

  • Vizsla Silver Corp., reported that it filed on the System for Electronic Document Analysis and Retrieval (SEDAR), an independent technical report containing a maiden mineral resource estimate on its Panuco project in Sinaloa.
  • Azucar Minerals Ltd., commenced to drill test a large lithocap target discussed previously at its El Cobre project, Veracruz. The lithocap target was outlined by several exploration techniques, including geophysics, mineralogy, geochemistry and past drilling campaigns at the property.
  • GR Silver Mining Ltd., reported results from three underground drill holes collared at its San Marcial project, Sinaloa. The most significant drill intercepts were encountered in holes SM121-07 with 201 g/t Ag, 0.02 g/t Au, 0.2% Pb, and 0.3% Zn over a true width (TW) of 3.7m, including 1,413 g/t Ag, 0.11 g/t Au, 0.9% Pb, and 1.3% Zn over a TW of 0.2m, plus 124 g/t Ag, 0.01 g/t Au, 0.1% Pb, and 0.1% Zn over a TW of 8.5m, including, 223 g/t Ag, 0.01 g/t Au, 0.1% Pb, and 0.1% Zn over a TW of 2.4m, including 553 g/t Ag, 0.03 g/t Au, 0.2% Pb, and 0.4% Zn over a TW of 0.5m. Results confirmed a significant expansion of high-grade Ag mineralization approximately 300m down dip below the lower limit of the pit-constrained San Marcial mineral resource. A two phase 4,500m drilling program is planned for 2022 at San Marcial to support future resource expansion and an updated NI 43-101 mineral resource estimate.
  • Avino Silver & Gold Mines Ltd., published results from 110 holes drilled on the oxide tailings project at its Avino property in Durango. The drilling program consisted of 3,645m. The drill density of the current program should be sufficient to upgrade most of the existing inferred mineral resources to the measured and indicated categories, and to potentially expand the resources. Selected highlights are shown below:
·        Golden Tag Resources Ltd., released results from hole 22-64 drilled at its San Diego mine, Durango. This hole is part of an exploration program targeting bulk-tonnage mineralization and encountered several mineralized intervals. Key highlights include 0.07 g/t Au, 45 g/t Ag, 0.1% Pb, 0.1% Zn, and 0.02% Cu (60 g/t AgEq) over 73.5m, including 0.45 g/t Au, 882 g/t Ag, 0.7% Pb, 0.8% Zn, and 0.17% Cu (980 g/t AgEq) over 0.91m, 0.31 g/t Au, 371 g/t Ag, 0.7% Pb, 0.4% Zn, and 0.07% Cu (441 g/t AgEq) over 2.80m, plus 0.24 g/t Au, 385 g/t Ag, 0.5% Pb, 1.4% Zn, and 0.05% Cu (482 g/t AgEq) over 1.80m, plus  0.2 g/t Au, 475 g/t Ag, 1% Pb, 4.9% Zn, and 0.15% Cu (734 g/t AgEq) over 0.53m (all in the 57 target zone); plus 3.64 g/t Au, 18 g/t Ag, 0.04% Pb, 0.1% Zn, and 0.01% Cu (317 g/t AgEq) over 0.60m (on the Montanez zone), plus 0.18 g/t Au, 212 g/t Ag, 1.8% Pb, 2.9% Zn, and 0.07% Cu (405 g/t AgEq) over 0.70m (on the Canta target area), plus 0.32 g/t Au, 355 g/t Ag, 0.5% Pb, 0.5% Zn, and 0.08% Cu (422 g/t AgEq) over 0.63, and plus 0.08 g/t Au, 286 g/t Ag, 0.2% Pb, 0.6% Zn, and 0.06% Cu (331 g/t AgEq) over 1.04m (On the Rata target area). This result extends the open pit mineralization for over 290m vertical.
·        Silver Dollar Resources Inc., announced that phase 2 exploration drilling program is underway at its la Joya project in Durango. Phase 2 drilling will remain focused on the underexplored Noria portion of the Property and new targets that were identified in the results received to date from the Phase 1 drilling program, which consisted of 11 holes for a total of 2,424 m of drilling. Assays for the first seven holes were reported and results for the remaining holes are expected shortly.
·        Silver Viper Minerals Corp., conducted a TITAN-MT deep-penetrating geophysical survey centered on the El Rubi deposit, Paredones, and El Molino target areas at its La Virginia project in Chihuahua, to assist in targeting for deeper portions of the mineralized system. The TITAN Magnetotelluric (MT) survey is capable of acquiring information from depths in excess of 1,500m below surface. Geologist of the company have reviewed preliminary 2D imaging from the first of the MT survey lines and believe the method will be very effective at La Virginia property. Silver Viper expects to receive final deliverables in the coming weeks.
·        Starcore International Mines Ltd., provided an update on the diamond drilling program conducted at its San Martin mine in Querétaro. A total of 9,410m were drilled in 2021 until the end of March, 2022 which focused on two areas of the mine:  the first focusing on the northwest part of the operating mine, and the second searching for the extension of the orebodies of high – grade discovered during the 30 years of the mine’s life.  Highlights on the area 33 include hole DC3221-10 with 7.36 g/t Au and 28 g/t Ag over 3m; hole DC3221-11 with 2.21 g/t Au and 26 g/t Ag over 8m; hole DC3221-12 with 16.27 g/t Au and 7 g/t Ag over 0.5m; and hole DC3221-15 with 12.2 g/t Au and 10 g/t Ag over 0.60m. Highlights on the area 28 include hole DC2820-214 with 2.14 g/t Au and 57 g/t Ag over 2.4m; hole DC2820-215 with 2.42 g7t Au and 21 g/t Ag over 2.95m; and hole DC2821-217 with 8.08 g/t Au and 15 g/t Ag over 2.15m.
·        Zacatecas Silver Corp., announced results from its ongoing diamond drilling program on the Panuco North and Panuco Central Veins at its Zacatecas project in Zacatecas state. Drilling highlights include hole PAN2022-042 with 1,423 g/t Ag and 0.28 g/t Au (1,440 g/t AgEq) over 1.25m; hole  PAN2022-044 with 353 g/t Ag and 0.29 g/t Au (379 g/t AgEq) over 4.35m; hole PAN2022-043 with 358 g/t Ag and 0.28 g/t Au (379 g/t AgEq) over 1.55m; hole PAN2022-046 with 201 g/t Ag and 0.28 g/t Au (222 g/t AgEq) over 1.05m; and hole PAN2022-045 with 115 g/t Ag and 0.85 g/t Au (179 g/t AgEq) over 5.96m. “Following the recent grant of 27 additional drill pads, Zacatecas Silver will be able to test the depth extension of mineralization at south-eastern Panuco North over a strike length of 600 m and to complete a maiden drill program along the central part of the Panuco North vein over a strike length of 1.4 km”.

ON DEALS AND CORPORATE ISSUES

·        Sailfish Royalty Corp., provided an update on its previously announced Swordfish silver transaction. The proposed transaction is expected to result in the transfer of the Company’s wholly owned Gavilanes silver property located in Durango, Mexico. Closing of the Gavilanes Acquisition is subject to, among other things, Swordfish acquiring the Commonwealth Silver-Gold Project in exchange for shares of Swordfish, a concurrent private placement financing for proceeds of USD $5M.

ON SOCIAL RESPONSIBILITY

·        Esperanza Silver has a Community Engagement Plan to meet the objectives proposed by the New Socially and Environmentally Responsible Mining Model. It has the objective of developing a gold and silver mine in the lands of common use of the community of San Agustín Tetlamam, located in the municipality of Temixco in the state of Morelos. “This new way of developing mining, prioritizing social bonding and the use of techniques that allow avoiding, minimizing, mitigating and compensating for environmental impacts, is due to the genuine interest of Esperanza Silver de México and Alamos Gold Inc. in responding to the demands of a society interested in caring for the environment and the social environment.”

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, flow banded rhyolite in Durango, Mexico.  Photo by Miguel A Heredia.

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

By Jorge Cirett

During the 33rd week of the year (August 16th to August 22nd, 2021), at least 22 press releases were announced by companies working in Mexico. To note, four companies posted exploration advances on their properties, four posted on mining/quarterly reports, two on mining issues, four on financing or shares  and five more on project development or resource definition and one more on a property acquisition. ON MEXICO ISSUES, No relevant news. ON EXPLORATION, in Sonora, Aloro Mining informed on continuation of drilling at Los Venados. In Chihuahua, Radius Gold announced one more drilling campaign at Amalia. In Sinaloa, Vizsla Silver updated on exploration at Panuco. In Nayarit, Xali Gold submitted drilling applications for El Dorado.    ON MINING, Americas Gold and Silver, Prime Mining, First Majestic Silver, and Impact Silver presented second quarter 2021 reports. Mexus Gold shipped its first activated carbon. Gold Resource halted activities due to increase in COVID cases among its workforce. ON FINANCING, Candelaria Mining will not complete the proposed private placement. Galore Resources is to extend the expiry date of some warrants. Kootenay Silver is to spin-out its Canadian assets into another company. Magna Gold closed the previously announced private placement for C$10 M. ON RESOURCES AND DEVELOPMENT, Sierra Metals announced a 10,000 tpd PEA for its Bolivar mine in Chihuahua. Fabled Silver Gold released more results from drilling at Santa Maria. Excellon Resources released high grade Ag-Pb-Zn drilling results from Platosa. GoGold Resources informed on results of drilling at the Casados deposit at Los Ricos project. Sonoro Gold reported results of metallurgical tests at Cerro Caliche.  ON DEALS AND CORPORATE ISSUES, Starcore International Mines acquired the Tecouitla claims in Sonora. ON SOCIAL RESPONSIBILITY, No relevant news.

ON MEXICO ISSUES

  • No relevant news.

ON EXPLORATION

  • Xali Gold Corp. informed exploration permit applications have been submitted for El Dorado project in Nayarit. The plus 2,000 m program envisaged will test potential lateral extensions to high-grade zones to better define plunging mineralization shoots, and collection of a bulk sample from El Hundido mine.
  • Radius Gold Inc. announced that the phase five drilling campaign has commenced at its Amalia project in Chihuahua. Pan American Silver Corp., the project operator plans to deploy a second rig to test El Cuervo target.
  • Aloro Mining Corp. informed that Alamos Gold Inc. is to resume the reconnaissance drill program on the Los Venados claims in Sonora. Alamos has already exceeded its first year exploration commitment; the current program is focused on outcropping low sulfidation epithermal mineralization.
  • Vizsla Silver Corp. provided an update on its Panuco project in Sinaloa. Due to the current rise in Covid cases in Sinaloa, Vizsla will keep the current pause in activities at the property until the end of the month, and then gradually increase activities through September. Resource drilling is being done at Napoleon (950 x 350 m area) and Tajitos (550 m x 300 m area), exploration drilling is testing the Napoleon, Cinco Señores, Cordon de Oro and Animas Corridors. Preliminary metallurgical testing is being done on Napoleon vein material, and geotechnical and hydrogeological studies are being conducted. Drilling programmed for the remainder of 2021 comprises 35,000 m.  

ON MINING

  • Americas Gold and Silver Corp. reported second quarter 2021 consolidated financial and operational results. For Mexico, the company reported that it “signed an agreement with the Mexican Ministries of Economy, Interior and Labour along with union representatives committing to a re‐opening at the Cosalá Operations.    The agreement contemplates immediate right to possession of the property with joint inspections coordinated by the Ministry of Labor, so that the mine and mill can re‐start operations in a safe and sustainable manner”. (Note from writer. – The mine was paralyzed by a dispute between two unions over a year ago, with strong political connotations).
  • Prime Mining Corp. reported its operational and financial results for the fourth quarter of fiscal year 2021, end in April 2021. During April the company completed a private placement for gross proceeds of CAN$28.75 M. Also in the period, drilling at Los Reyes in Sinaloa intersected up to 20.1 m @ 3.25 gpt Au, 389 gpt Ag, 3.8 m @ 3.69 gpt Au, 305 gpt Ag, 4.5 m @ 8.95 gpt Au, 74 gpt Ag; 18.7 m @ 1.96 gpt Au, 63 gpt Ag; 39.0 m @ 0.7 gpt Au, 29 gpt Ag. Cash at the end of the period stood at Can$32 M.
  • First Majestic Silver Corp. announced the consolidated financial results for the second quarter 2021. During the period the company processed 826.2 K tonnes, to produce 3.27 M Oz Ag, or 6.43 Oz AgEq at $13.89 per Oz AgEq and an AISC of $19.42 per Oz AgEq. In Mexico, the production came from San Dimas, in Durango, La Encantada, in Coahuila, and Santa Elena, in Sonora.
  • Mexus Gold US. confirmed the first shipment of activated carbon from its Santa Elena mining operation in Sonora (Not to mistake with First Majestic’s Santa Elena mine, also in Sonora).
  • Gold Resource Corp. informed that as result of a steep climb in COVID-19 infections, the company is reducing its activities at the Don David mine in Oaxaca. The measure is to last for at least ten days. “The operations will continue with those employees and contractors who have agreed to stay in the camp for periods longer than the usual rotation to create a bubble”.
  • Impact Silver Corp. announced its financial and operational results for the second quarter 2021. The cash balance at the end of the quarter was $22.4 M. The mill processed 37.8 K tonnes @ 147 gpt Ag to produce 150.3 K Oz Ag. Some results of its ongoing 10,000 m drilling campaign include 9.8 m @ 211 gpt Ag and 13.85 m @ 186 gpt Ag.

ON FINANCING

  • Candelaria Mining Corp. informed that the company will not be proceeding with the proposed brokered private placement previously announced (Pinos, Zacatecas, Guerrero).
  • Galore Resources Inc. proposed to extend the expiry date of 5.6 M share purchase warrants from September 2021 to September 2024 (Dos Santos, Zacatecas).
  • Kootenay Silver Inc. board approved a spin-out of 80% of its Canadian exploration assets. Once the arrangement becomes effective, Kootenay shareholders will own shares in two public companies, one focusing in Mexico and the other in Canada (Columba, Chihuahua).
  • Magna Gold Corp. closed the previously announced private placement of C$10 M convertible debentures (San Francisco, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Sierra Metals Inc. announced a 10 K tonnes per day positive preliminary economic assessment (PEA) to include iron ore production at its Bolivar mine in Chihuahua. The report envisages an updated after-tax net present value (NPV) of US$361 M at an 8% discount rate, an IRR of 27.9%, net after-tax cash flow of US$650 M with a life of mine (LOM) copper grade of 0.72% and iron ore at 13.5%, an operating cost of US$25.62/tonne and US$1.50 per Lb CuEq, to produce 55 M Lb Cu in 14 years. Current indicated resources stand at 19.4 M tonnes @ 0.77% Cu, 15.1 gpt Ag, 0.21 gpt Au, 13.8% Fe, containing 149.1 K tonnes Cu, 9.4 M Oz Ag, 127.8 K Oz Au, and inferred resources at 21.4 M tonnes @ 0.78% Cu, 14.2 gpt Ag, 0.21 gpt Au, containing 167.1 K tonnes Cu, 9.8 M Oz Ag, 145.6 K Oz Au.
  • Fabled Silver Gold Corp. announced more results from surface drilling at its Santa Maria project in Chihuahua. Highlighted core length intervals comprise 0.85 m @ 0.98 gpt Au, 10 gpt Ag; 0.80 m @ 0.09 gpt Au, 63 gpt Ag, 0.3% Pb, 0.6% Zn; 20.10 m @ 0.18 gpt Au, 35 gpt Ag, 1.1% Pb, 0.7% Zn, 0.09% Cu (including 5.90 m @ 0.30 gpt Au, 97 gpt Ag, 3.3% Pb, 1.5% Zn, 0.25% Cu).
  • Excellon Resources Inc. released results from underground drilling at Platosa, in Durango. Some of the highlighted core length intervals: 3.0 m @ 227 gpt Ag, 2.3% Pb, 2.0% Zn, 0.1 gpt Au; 1.3 m @ 360 gpt Ag, 10.1% Pb, 10.2% Zn; 1.3 m @ 692 gpt Ag, 9.3% Pb, 6.3% Zn; 1.2 m @ 544 gpt Ag, 5.9% Pb, 3.9% Zn; 1.6 m @ 1,647 gpt Ag, 12.3% Pb, 11.6% Zn, 0.1gpt Au; 5.2 m @ 1,051 gpt Ag, 12.1% Pb, 13.1% Zn, 0.2 gpt Au (including 2.3 m @ 1,985 gpt Ag, 22.8% Pb, 17.2% Zn); 2.5 m @ 784 gpt Ag, 7.7% Pb, 13.9% Zn, 0.3 gpt Au; 3.1 m @ 581 gpt Ag, 5.7% Pb, 11.4% Zn, 0.1 gpt Au; 1.4 m @ 1,050 gpt Ag, 3.4 % Pb, 2.0% Zn; 3.1 m @ 289 gpt Ag, 2.2% Pb, 3.7% Zn. “Drilling from underground continues to define and expand known mineralization ahead of production at the 623, NE-1 and NE-1S Mantos. Most significantly, drilling into the 623 and NE-1 Mantos continues to improve understanding and confidence, and extend mineralization in these areas”.
  • GoGold Resources Inc. informed on results from seven drill holes at the Casados deposit at the Los Ricos North project in Jalisco. Highlighted core length intervals: 19.0 m @ 0.54 gpt Au, 131 gpt Ag (including 1.3 m @ 5.16 gpt Au, 1,319 gpt Ag); 9.5 m @ 0.50 gpt Au, 233 gpt Ag; 41.6 m @ 1.25 gpt Au, 218 gpt Ag (including 8.9 m @ 4.71 gpt Au, 698 gpt Ag); 19.2 m @ 0.53 gpt Au, 185 gpt Ag (including 8.5 m @ 1.14 gpt Au, 594 gpt Ag); 8.2 m @ 0.26 gpt Au, 82 gpt Ag. “The Casados Veins strike nearly E-W, dips 45o to the north and is hosted in andesitic tuffs and is exposed on surface for about 400 metres along strike…… A zone of silicification up to 50 metres wide envelopes the vein and this resistant outcrop forms a steep ridge along the strike of the vein, particularly on the north or hanging wall side”.
  • Sonoro Gold Corp. reported results from metallurgical tests on mineralized material from Cerro Caliche in Sonora. The column metallurgical test returned an average of 74% recovery of gold for the 80% minus 12.5 mm feed material. The 4.7 tonnes sample was obtained from ten PQ (8.5 cm diameter) holes totaling 428 lineal meters. Little to no sulfur and organic carbon were observed on the testing. “There were no obvious variations in gold recovery related to ore zone or material type (vein breccia vs. stock work)”.

ON DEALS AND CORPORATE ISSUES

  • Starcore International Mines Ltd. informed on the acquisition of the 3,088 hectares Tecoutila claims from Minera Tecouitla, S.A. de C.V.. Previous exploration in the property reported nine veins with lengths of up to 2.1 Km, widths of 0.5 to 1.1 m and grades of up to 10.30 gpt Au, 241 gpt Ag.

ON SOCIAL RESPONSIBILITY

  • No relevant news.

On the image below:  Workings and vein trace on a project in northern Sonora. Picture by Jorge Cirett.

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

Vein-Bx hosted in volcanic rocks

By Miguel A Heredia

During the 28th week of the year (July 12th to July 18th, 2021), at least 29 press releases were announced by companies working in Mexico and 4 news published by the media, with nine communicating production and financial results, nine reporting on resources and developments of their properties, seven announcing financial rounds, four informing on exploration results, two commenting on Mexican issues and two discussing social issues.  ON MEXICO ISSUES, The Ministry of Economy of Mexico alerted the public about false information that is being disseminated on behalf of the “Undersecretariat of Mining” and recalled that it no longer exists. The Mexican Geological Service (SGM) and the Government of Hidalgo signed an agreement to join efforts on research and science to integrate a knowledge-creating system. ON EXPLORATION, In Sinaloa, Vizsla presented results from the first four holes collared at the Josephine Vein within its Panuco project. In Durango, Mithril released drilling result from its Copalquin property. In Zacatecas, Alien provided an update on the review and planning for the next phase of exploration on its Donovan 2 project. In Oaxaca, Inomin filed a NI43-101 technical report for its la Gitana project. ON MINING, Aura reported Q2, 2021 production from its Aranzazu mine in Zacatecas. First Majestic reported Q2, 2021 production results from their Mexican mine operations. Altaley presented Q2, 2021 production and financial results from its Campo Morado mine in Guerrero. Golden Minerals reported Q2, 2021 production results from its Rodeo mine in Durango. Gold Resource released Q2, 2021 production results from its Arista mine in Oaxaca. Magna Gold presented Q2, 2021 production results from its San Francisco mine in Sonora. McEwen reported Q2, 2021 production results from its El Gallo project, Sinaloa. Mexus announced that the company will be shipping approximately 1 tonne of activated carbon to USA for processing.  ON FINANCING, Almadex and Azucar Minerals granted stock options to certain directors, employees and consultants. Gatos Silver signed a definitive agreement to retire its portion of the Los Gatos JV term loan and announced a public offering to sell shares of its common stock (Los Gatos mine, Chihuahua). One World Lithium announced a non-brokered private placement for gross proceeds of up to CAD $2,025,000 (Salar del Diablo project, Baja California). Riverside informed that it is to receive USD $5.4M in exploration funding from BHP to advance four copper projects in Sonora. Orla Mining closed a non-broker prospectus financing for gross proceeds of USD $35M (Camino Rojo project, Zacatecas).  ON RESOURCES AND DEVELOPMENT, Discovery Silver released results from 13 drill holes collared at its Cordero project in Chihuahua. Fabled announced results from its ongoing drilling program at Santa Maria project in Chihuahua. Avino presented results from Phase 1 of the drill campaign conducted at its Avino mine in Durango. GoGold released results from eleven drill holes collared at its Los Ricos North project in Jalisco. Golden Tag presented results from a drill hole collared at the Fernandez Zone within its San Diego property in Durango. Great Panther announced Q2, 2021 production results from their Topia and Guanajuato Mine Complex located in Durango and Guanajuato respectively. IMPACT informed that it has completed phase 1 of the Veta Negra drilling program in the Zacualpan mining district, State of Mexico. Kootenay hired Blue Coast Research to conduct metallurgical testing on its la Negra property in Sonora. Prime Mining released drill results from its Los Reyes project in Sinaloa.  Silver Tiger announced that it continue intersecting high grade mineralization at its El Tigre project in Sonora.  ON DEALS AND CORPORATE ISSUES, no relevant news. ON SOCIAL RESPONSIBILITY, Grupo México donated 8,000 native trees to Hermosillo, Sonora. The Government of Zacatecas along with representatives of the mining companies Fresnillo plc and Capstone Gold began with the Tree Donation Program.

ON MEXICO ISSUES

  • The Ministry of Economy of Mexico alerted the public about false information that is being disseminated on behalf of the “Undersecretariat of Mining” and recalled that it no longer exists. Through a press release, the agency indicated that it has no relationship with the “Commission National Mining Reactivation and Sustainable Production Mexico 2021”, nor with the “Project for Reactivation and Sustainable Production”, nor with the “Guide to Good Operating Practices”, which is supposedly being prepared by the “Undersecretary of Mining of the Government of Mexico”. According to Article 243 of the Federal Criminal Code, the crime of falsifying public documents will be punishable by imprisonment from four to eight years.
  • The Mexican Geological Service (SGM) and the Government of Hidalgo signed an agreement to join efforts on research and scienceto integrate a knowledge-creating system, for the benefit of future generations. Objectives are established to work together on two projects: Comarca Minera Geopark and LABChico: Mineral del Chico Underground Laboratory.

ON EXPLORATION

  • Vizsla Silver Corp., presented results from the first four holes collared at the Josephine Vein within its Panuco project. Highlights include hole NP-21-132 with 2.16 g/t Au, 599 g/t Ag, 0.4% Pb, and 1% Zn (797 g/t AgEq)  over 2.5m, including 12.4 g/t Au, 3,320 g/t Ag, 1.8% Pb, and 4.9% Zn (4,431 g/t AgEq) over 0.3m; and hole NP-21-139 with 3.4 g/t Au, 426 g/t Ag, 1% Pb, and 5.5% Zn (869 g/t AgEq) over 1.45m, including 3.91 g/t Au, 502 g/t Ag, 1.2% Pb, and 6.8% Zn (1,020 g/t AgEq) over 1.15m. “Drilling intersected veining of 90m strike, 190m depth where it remains open.  Ground Electromagnetic (EM) has mapped the vein over 1.7 km”.
  • Mithril Resources Ltd., released drilling result from its Copalquin property in Durango. Bonanza grade was intersected in hole CDH-077 collared at El Refugio Area with 80.3 g/t Au and 705 g/t Ag over 8.26m, including 106 g/t Au and 913 g/t Ag over 6.26m, including 837 g/t Au and 6,680 g/t Ag over 0.77m. Other high grade intercepts were encountered in hole CDH-075 with 13.8 g/t Au and 83 g/t Ag over 2.7m, plus 10.9 g/t Au and 364 g/t Ag over 4.25m, including 16.3 g/t Au and 414 g/t Ag over 2.65m, plus 1.02 g/t Au and 17 g/t Ag over 2m, plus 0.84 g/t Au and 35 g/t Ag over 4.5m; and hole CDH-076 with 0.93 g/t Au and 16 g/t Ag over 2.4m, plus 2.06 g/t Au and 95 g/t Ag over 5m, plus 0.86 g/t Au and 39 g/t Ag over 1m. Drilling results continue expanding the El Refugio structure down dip with high-grade and bonanza grade gold-silver intercepts.
  • Alien Metals Ltd., provided an update on the review and planning for the next phase of exploration on its Donovan 2 project in Zacatecas. Alien has received this property back from Capstone after ceasing their agreement. After reviewing all the exploration work carried out at Donovan 2, Alien concluded that the original high-priority targets identified by Alien prior to Capstone’s involvement remain untested. In the eastern area of Donovan 2 property, a north-south grid to collect 55 Metal Mobile Ion (MMI) surface geochemical samples has been designed and work has commenced. “The Company is finalizing an initial 4-to-6 hole program for about 800m to target the Los Alamos and Cerro de la Cruz targets once a review of the current drilling permit status is completed, the MMI results are received and reprocessing of the geophysics are completed to ensure the Company has used every available piece of data to maximize confidence in the drilling program”. 
  • Inomin Mines Inc., filed a NI43-101 technical report for its la Gitana project located in Oaxaca. La Gitana is an advance property where a substantial near-surface, low-sulphidation, epithermal gold-silver mineral system has been outlined. “Previous drilling programs at La Gitana in 2004 – 2006 by Chesapeake Gold Corp., intersected gold-silver mineralization in a core zone 400 to 500m long, 50 to 150m wide and 50 to 300m depth, with grades ranging from 0.25 to 27.8 g/t gold and 5 to 2,330 g/t silver”.  The gold-silver mineralization is open to expansion to the southeast and at depth from drill-tested areas.  Inomine plans to conduct a phase 2 drilling campaign and complete a preliminary resource estimation.

ON MINING

  • Aura Minerals inc., reported Q2, 2021 production from its Aranzazu mine in Zacatecas. It produced 5,120 Oz Au, 84,263 Oz Ag, and 6.78M Lb Cu for a total of 22,590 GEO (Oz AuEq).
  • First Majestic Silver Corp., reported Q2, 2021 production and financial results from their Mexican mine operations. The table below, shows mine by mine figures:
MineOre ProcessedTonnes per DayAg Grade (g/t)Au Grade (g/t)Ag RecoveryAu RecoveryAg Oz ProducedAu Oz ProducedAgEq Oz produced
San Dimas202,3822,2243013.0795%96%1,868,03119,2273,176,725
Santa Elena234,3812,576811.1793%96%565,4538,4531,140,398
La Encantada242,8392,6691380.0278%90%840,541102847,502
TOTAL679,6027,4691671.3289%94%3,27,402527,7825,164,625
  • Altaley Mining Corporation presented Q2, 2021 production and financial results from its Campo Morado mine in Guerrero. The company milled 164.1K tonnes of 1.2 g/t Au, 129 g/t Ag, 1.1% Pb, and 4.5% Zn with metallurgical recoveries of 22%, 46%, 31%, and 74% respectively to produce 11.9K tonnes of Zn concentrate and 2.7K tonnes of Pb concentrate. Altaley reported revenues of USD $13.9M from the sale of Zn concentrates and USD $2.27M for the Pb concentrates for total revenue of USD $16.2M.
  • Golden Minerals Company reported Q2, 2021 production results from its Rodeo mine in Durango.  The company mined 164,954 tonnes from which it processed 49,552 tonnes of 3.6 g/t Au and 10 g/t Ag with metallurgical recoveries of 78% and 83.9% respectively to produce 3,452 Oz Au and 11,225 Oz Ag (3,230 Oz AuEq).
  • Great Panther Mining Limited announced Q2, 2021 production results from their Topia and Guanajuato Mine Complex located in Durango and Guanajuato respectively. At Topia, Durango, the company processed 15,520 tonnes of 432 g/t Ag, 1.07 g/t Au with metallurgical recoveries of 93.5% and 60.3% respectively, to produce 201,339 Oz Ag, 321 Oz Au, 799.7K Lb Pb, and 1.07M Lb Zn (3123K Oz AgEq or 3,674 Oz AuEq. At the Guanajuato Mine Complex, the company processed 40,477 tonnes of 118 g/t Ag and 1.58 g/t Au with metallurgical recoveries of 87.4% and 87.6% respectively, to produce 133K Oz Ag and 1,786 Oz Au (284.9K Oz AgEq or 3,352 Oz AuEq).
  • Gold Resource Corporation released Q2, 2021 production results from its Arista mine in Oaxaca. The company milled 129,590 tonnes from Arista and El Aguila mines with grades of 1.91 g/t Au, 79 g/t Ag, 0.36% Cu, 1.6% Pb, and 3.6% Zn at Arista mine and 2.58 g/t Au and 47 g/t Ag at El Aguila to produced 5.7K Oz Au, 270.3K Oz Ag, 817.6K Lb Cu, 2.7M Lb Pb, and 7.15M Lb Zn.
  • Magna Gold Corp., presented Q2, 2021 production results from its San Francisco mine in Sonora. It mined 1.23M tonnes  of 0.43 g/t Au and processed 1.35M tonnes (all sources) of 0.49 g/t Au to produce 11.7K Oz Au and 8.4K Oz Ag. The company sold 11.8K Oz Au and 8.4K Oz Ag.
  • McEwen Mining Inc., reported that it produced 1,300 Gold Equivalent Oz (GEOs) during Q2, 2021 at its El Gallo project, Sinaloa from residual leaching of the heap leach pad.
  • Mexus Gold US announced that the company will be shipping approximately 1 tonne of activated carbon to USA for processing which is believed to contain 4K grams of Au.

ON FINANCING

  • Almadex Minerals Ltd., granted stock options to certain directors, employees and consultants to purchase 757,800 common shares at an exercise price of $0.30 per share which expire on July 8, 2023 (El Chato project, Puebla).
  • Azucar Minerals Ltd., granted stock options to certain directors, employees and consultants to purchase 793,800 common shares at an exercise price of $0.11 per share which expire on July 8, 2023 (El Cobre project, Veracruz).
  • Gatos Silver Inc., signed a definitive agreement to retire its attributable portion of the los Gatos JV term loan which is approximately $154.8M, and announced a public offering to sell shares of its common stock to raise funds to achieve a more cost-efficient capital structure, including the potential extinguishment of the Los Gatos Joint Venture’s term loan, and to create additional liquidity in Gatos Silver’s common stock. The company plans to offer 6,500,000 shares of common stock and for certain selling stockholders to offer 1.82M shares of common stock. In addition, Gatos Silver and the selling stockholders intend to grant the underwriters a 30-day option to purchase up to 975K and 273K additional shares of common stock, respectively, at the public offering price, less underwriting discounts and commissions (Los Gatos mine, Chihuahua).
  • One World Lithium announced a non-brokered private placement for gross proceeds of up to CAD $2,025,000. It will allocate the net proceeds as follows: Salar del Diablo Lithium property southern and possible middle portion of the property drilling program CAD $750K; initial lab tests, design of and completing engineer design work for a pilot plant for the company’s critical fluid separation technology CAD $750K and CAD $525K for working capital.  
  • Riverside Resources Inc., informed that it is to receive USD $5.4M in exploration funding from BHP to advance four copper projects as part of the expanding copper exploration program with BHP in Sonora.  The properties to advance are Chuin, Palofierro, Sinoquipe, and Peñitas. Chuin and Palofierro are drill-ready properties, and drilling permits are underway, while Sinoquipe and Peñitas will be subject to Magneto-Telluric surveys which are expected to commence after contractors are secured.  This new funding of at least USD 5.4M is in addition to the USD $1.3M allocated for the next generative phase of exploration work, which began two months ago.
  • Orla Mining Ltd., closed a non-broker prospectus financing for gross proceeds of USD $35M consisting of 9,085,263 common shares priced at CAD $4.75 per common share. Part of the net proceeds will be used for development activities and at its Camino Rojo Oxide Gold Project in Zacatecas, and for general corporate purposes.

ON RESOURCES AND DEVELOPMENT

  • Discovery Silver Corp., released results from 13 drill holes collared at its flagship Cordero project in Chihuahua. These results are part of the recently completed phase 1 drill program and are going to be incorporated in a new resource estimate in Q3, 2021 and PEA in Q4, 2021. Highlights include hole C21-457 with 1,570 g/t Ag, 16.25 g/t Au, 7% Pb, and 19% Zn (3,934 g/t AgEq) over 1.1m; hole C21-435 with 122 g/t Ag, 0.06 g/t Au, 1.1% Pb, and 1.9% Zn (245 g/t AgEq) over 28.5m, including 1,960 g/t Ag, 0.32 g/t Au, 15.4% Pb, and 21.6% Zn (3,424 g/t AgEq) over 1.1m; hole C21-437 with 87 g/t Ag, 0.05 g/t Au, 0.9% Pb, and 0.8% Zn (157 g/t AgEq) over 58.8m, including 1,480 g/t Ag, 0.22 g/t Au, 13.1% Pb, and 20% Zn (2,789 g/t AgEq) over 1.2m; hole C21-436 with 1,385 g/t Ag, 0.49 g/t Ag, 7.5% Pb, and 10.9% Zn (2,139 g/t AgEq) over 1.4m; hole C21-435 with 385 g/t Ag, 1.15 g/t Au, 5.9% Pb, and 11.9% Zn (1,179 g/t AgEq) over 4.5m; and hole C21-459 with 420 g/t Ag, 0.32 g/t Au, 8.8% Pb, and 14.9% Zn (1,374 g/t AgEq) over 1.3m. In addition, “the company has completed 17,200 m (47 holes) as part of its Phase 2 drill program which will be ongoing through the remainder of the year. Phase 2 drilling will be focused on three key areas: (1) upgrading inferred resources for inclusion in a prefeasibility study; (2) resource expansion of bulk-tonnage mineralization; and (3) testing of the width, grade and continuity of the extensive high-grade vein systems that transect the deposit. There are currently four drill rigs operating on site”.
  • Fabled Silver Gold Corp., announced results from the current ongoing drilling program at its Santa Maria project in Chihuahua. The most significant drill intercept was encountered in hole SM20-20 with 2.5 g/t Au, 32 g/t Ag, 0.6% Pb, 0.5% Zn, and 0.03% Cu (161 g/t AgEq) over 30.7m, including 3.33 g/t Au, 41 g/t Ag, 0.8% Pb, 0.5% Zn, and 0.04% Cu (213 g/t AgEq) over 22.70m, including 5.61 g/t Au, 64 g/t Ag, 1.4% Pb, 0.9% Zn, and 0.06% Cu (353 g7t AgEq) over 11.60m, including 7.24 g/t Au, 80 g/t Ag, 1.9% Pb, 1.1% Zn, and 0.07% Cu (453 g/t AgEq) over 7.24m. “The Company has now completed drill holes SM20-01 to SM20-24 for a total of approximately 6,500 meters of the increased 9,200 meter drill program drilled to date. Hole SM20-25 is currently in progress”.
  • Avino Silver & Gold Mines Ltd., presented results from Phase 1 of the drill campaign, which is looking to add measured and indicated resources to its Avino mine in Durango. The most significant drill intersects on El Trompo Vein were encountered in holes  TR-21-01 with 0.56 g/t Au, 177 g/t Ag,  0.5% Pb, and .7% Zn (577 g/t AgEq) over 0.95m; and hole TR-21-03 with 0.42 g/t Au, 276 g/t Ag, 0.1% Cu, 0.3% Pb, and 0.1% Zn (322 g/t AgEq) over 2.75m. On the Santiago Vein, the most significant drill intercepts was encountered in hole ST-21-04 with 2.62 g/t Au, 643 g/t Ag, 0.25% Cu, 0.3% Pb, and 0.3% Zn (865 g/t AgEq) over 0.8m. On the La Malinche Vein, the best drill intersects were encountered in hole LM-21-04 with 1.68 g/t Au, 252 g/t Ag, 1.17% Cu, 0.9% Pb, and 10.3% Zn (820 g/t AgEq) over 1.4m; and hole LM-21-06 with 1.56 g/t Au, 364 g/t Ag, 2.9% Cu, 0.7% Pb, and 0.06% Zn (786 g/t AgEq) over 0.90m.
  • GoGold Resources Inc., released results from eleven drill holes collared at its Los Ricos North project in Jalisco. Drilling highlights include hole LRGCS-21-047 collared at Casados Area with 0.76 g/t Au and 145 g/t Ag (2.71 g/t AuEq or 203 g/t AgEq) over 22.6m, including 4.31 g/t Au and 864 g/t Ag (15.84 g/t AuEq or 1,188 g/t AgEq) over 2m; and hole LRGCS-21-056 also collared at Casados Area with 0.96 g/t Au and 187 g/t Ag (3.45 g/t AuEq or 259 g/t AgEq) over 45.9m, including 6.17 g/t Au and 1,050 g/t Ag (20.17 g/t AuEq or 1,513 g/t AgEq) over 4.5m, including 13.01 g/t Au and 2,034 g/t Ag (40.12 g/t AuEq or 3,009 g/t AgEq) over 2m, including  19.87 g/t Au and 2,877 g/t Ag (58.23 g/t AuEq or 4,367 g/t AgEq).
  • Golden Tag Resources Ltd., presented results from hole 21-58 drilled at a steep angle toward the southwest to test the top of the Fernandez Zone resource envelope within its San Diego property in Durango. This hole intersected 0.13 g/t Au, 151 g/t Ag, 1.4% Pb, 1.7% Zn and 0.12% Cu (306 g/t AgEq) over a length of 6.55m, plus 0.14 g/t Au, 96 g/t Ag, 1.9% Pb, 1.6% Zn, and 0.07% Cu (258 g/t AgEq) over 16.34 g/t AgEq, plus 0.04 g/t Au, 0.8% Pb, 0.8% Zn, and 0.06% Cu (111 g/t AgEq) over 191.57m. Future drilling will be designed to determine if the grade improvement can be extended to the west and at depth below hole 21-58.
  • IMPACT Silver Corp., informed that it has completed phase 1 of the Veta Negra drilling program in the Zacualpan mining district, State of Mexico. The most significant drill intercept was encountered in hole Z21-05 with 187 g/t Ag0.98 g/t Au, 1.2% Pb, and 2.5% Zn over 13.85m. “The Veta Negra vein system was mined historically as both an open pit and from underground. Two north-northwest trending parallel veins enclosed by stockwork mineralized host rock are currently being mined by IMPACT over widths averaging 14 metres in the open pit”.
  • Kootenay Silver Inc., hired Blue Coast Research to conduct metallurgical testing on its la Negra property in Sonora with the aim to further investigate the best recovery process for La Negra along the path towards an initial mineral resource estimate and a preliminary economic assessment (PEA).
  • Prime Mining Corp., released drill results from the Noche Buena deposit within its Los Reyes project in Sinaloa. Highlights include hole 21NB-06 with 1.29 g/t Au and 61 g/t Ag over a true width (TW) of 28.9m , including5.74 g/t Au and 108 g/t Ag over a TW of 3.6m; hole 21NB-09 with 2.89 g/t Au and 62 g/t Ag over a TW of 8.4m, including 18 g/t Au and 209 g/t Ag over a TW of 1.2m; hole 21NB-08 with 1.23 g/t Au and 28 g/t Ag over a TW of 8.9m, including 6.08 g/t Au and 91 g/t Ag over a TW of 0.9m; hole 21NB-10 with 0.7 g/t Au and 28 g/t Ag over a TW of 15.6m, including 3.73 g/t Au and 109 g/t Ag over a TW of 0.9m; hole 21NB-05 with 0.77 g/t Au and 48 g/t Ag over a TW of 2.9m, including 2.67 g/t Au and 140 g/t Ag over a TW of 0.4m; hole 21NB-11 with 1 g/t Au and 18 g/t Ag over a TW of 5.2m;and hole 21NB-07 with 0.65 g/t Au and 21 g/t Ag over 10.4m. “The Noche Buena deposit remains open at depth and further along strike”.
  • Silver Tiger Metals Inc., announced that it continue intersecting high grade mineralization at its El Tigre project in Sonora. Highlights from the ongoing drilling program include hole ET-21-231, collared at the Sooy Vein with 303 g/t Ag, 0.11 g/t Au, 0.13% Cu, 0.8% Pb, and 0.7% Zn (369 g/t AgEq) over 10.8m, including 801 g/t Ag, 0.35 g/t Au, 0.71% Cu, 3.1% Pb, and 2.8% Zn (2,063 g/t AgEq) over 0.5m, and 125 g/t Ag,  0.17 g/t Au, 0.06% Cu, 0.5% Pb, and 0.7% Zn (180 g/t AgEq) over 21.9m, including 534 g/t Ag, 0.09 g/t Au, 0.2% Cu, 2.4% Pb, and 4% Zn (749 g/t AgEq) over 1.5m; and hole ET-21-235 collared at the Benjamin Vein with 89 g/t Ag, 0.1 g/t Au, 0.12% Cu, 0.8% Pb, and 1.1% Zn (161 g/t AgEq) over 6.3m, including 391 g/t Ag, 0.13 g/t Au, 0.56% Cu, 3.6% Pb, and 4.4% Zn (686 g/t AgEq) over 1m.

 ON DEALS AND CORPORATE ISSUES

  • No relevant news.

ON SOCIAL RESPONSIBILITY

  • Grupo México donated 8,000 native trees to Hermosillo, Sonora. The procedures to request the specimens began six months ago through the civil association Actions for a Better World by Karina López Ivich, who is the director and also climate leader of Climate Reality.
  • The Government of Zacatecas along with representatives of the mining companies Fresnillo plc and Capstone Gold began with the Tree Donation Program. Mining companies settled in the entity, has set a goal of delivering 10 thousand trees with the commitment to plant them in suitable places, carry out the necessary care and maintenance and guarantee their survival.

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 volcanic-hosted epithermal vein-breccia from a prospect in Chihuahua, Mexico.  Photo by Miguel A Heredia.

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

By Jorge Cirett

During the 25th week of the year (June 21st to June 28th, 2021), at least 34 press releases were announced by companies working in Mexico. To note, seven companies posted exploration advances on their properties, six posted on financing, warrants extension, options distribution or option payments received, eight more on project development or resource definition and four posted on deals or corporate issues. ON MEXICO ISSUES, there is a new illegal blockade at Los Filos in Guerrero. Canadian Mining companies are suffering the results of the asylum provided by Canada to Mexican union leader Napoleon Gómez Urrutia. ON EXPLORATION, in Sonora, Riverside is receiving funding for exploration of five properties; Ridgestone released surface sample results from Rebeico; Colibri completed an IP survey on Evelyn. In Chihuahua, Kootenay is to rehabilitate underground workings at Columba. In Sinaloa, GR Silver initiated a drilling campaign in the Rosario district. In Durango, Mithril intersected bonanza grade mineralization in drill holes at Copalquin. In Jalisco, Xali Gold identified targets at its Tepic project. ON MINING, Mexus Gold produced some gold at Santa Elena in Sonora. Fresnillo paid US$176.2 M in taxes to the Mexican government in 2020. Santacruz Silver reported a fatality at is Rosario mine in San Luis Potosi. ON FINANCING, Reyna Silver, Wealth Minerals and Southern Silver reported on financing rounds for C$6.06 M, $675 K and $3 M respectively. Vizsla Silver granted options, Radius Gold received $400 K as payment from Pan American Silver related to an earn-in agreement on the Amalia project. Advance Gold extended the expiry date of some warrants. ON RESOURCES AND DEVELOPMENT, Guanajuato Silver informed on advance at getting the El Cubo and Pinguico mines back to production. Minera Alamos informed construction has been completed at Santana, in Sonora. Fabled Silver Gold released drilling results from Santa Maria, in Chihuahua. Discovery Silver released results from drilling targeting bulk mining mineralization at Cordero, in Chihuahua. Vizsla Silver released interesting drilling results from Panuco, in Sinaloa. Silver Dollar signed a surface access agreement at La Joya, in Durango. Oroco Resources received the environmental permit to drill at Santo Tomas, in Sinaloa. ON DEALS AND CORPORATE ISSUES, Vizsla Silver is to spin a Canadian copper asset, forming Vizsla Copper. Fortuna Silver and Roxgold received a recommendation for their business combination. David Jones is on Benjamin Hill as a technical advisor. Orogen Royalties is to trade on the OTCQX ON SOCIAL RESPONSIBILITY, Peñoles, Fresnillo PLC, the Chihuahua Mining cluster and Minera Peñasquito informed on actions the companies realize to help communities and the environment. Great Panther published its sustainability report. Newmont launched its Climate Strategy Report.

ON MEXICO ISSUES

  • Equinox Gold Corp. informed an illegal blockade has temporarily suspended mining activities at Los Filos, Guerrero. the illegal blockades are led by “a group of unionized employees and members of the Xochipala community, both of whom are demanding payments in excess of their contractual agreements.
  • Americas Gold & Silver continues its fight against Napoleón Gómez Urrutia union. The company has had its San Rafael mine in Cosalá, Sinaloa, under siege for 18 months by the section 333 of the Sindicato de Trabajadores Mineros, Metalurgicos, Siderurgicos y Similares de la República Mexicana (the union led by Napoleón Gómez Urrutia). The company asked the Canadian government for help on what they see as an illegal blockade disguised as a dispute for the Union to control the company’s personnel collective contract (speaking of retribution, Canadian Mining companies are paying for the asylum Canada provided to the Union leader, and are set to pay dearly if do not fight back).

ON EXPLORATION

  • Riverside Resources Inc. informed BHP is funding exploration in five projects in Sonora, acquired under the BHP-Riverside Exploration Funding Agreement. A total of US$1.3 M over two years was allocated for generative funding, with an additional US$1 M in specific work programs. Riverside anticipates two projects will see a maiden drill campaign on 2021, of five under evaluation. The Chuin and Palofierro projects are the most advanced, while Sinoquipe, Penitas and Montosa projects are to follow suite. Magneto-teluric (MT) and gravity geophysics, green-mineral, whole rock and prospecting are being used for vectoring and district evaluations.
  • GR Silver Mining Ltd. initiated a 14,000 m exploration drill program in the Rosario district in Sinaloa.  Seven drill rigs are being mobilized to dill vein systems covering a combined 75 km strike length of the Plomosas, San Marcial and La Trinidad project areas. Some of the targets include the GAP area, Loma Dorada structure.
  • Xali Gold Corp. identified drill targets that can extend known mineralization at its Cocula project in Jalisco. These drill targets were identified on a 3D model, and are designed to test potential extensions to previously defined zones. The project displays two styles of mineralization, gold-silver as dissemination in oxidized breccias near surface and higher-grade gold silver and base metals in structures containing stockwork quartz veining.
  • Ridgestone Mining Inc. released assay results from sampling on recent mapping at its Rebeico project in Sonora. Sampling at El Cobre mine returned up to 1.0 m @ 3.5% Cu, 0.32 gpt Au, 32 gpt Ag, 0.136% Mo on the main structure. Regional mapping returned up to 1.2 m @ 1.06% Cu, 2.40 gpt Au, 6 gpt Ag in a quartz vein and 1.5 m @ 0.08% Cu, 3.45 gpt Au in a breccia. “The El Cobre mine was put into production by Asarco during the sixties and was developed on two levels, with the upper level having over 230 metres of drift development and the lower level having over 100 metres long of drift development at a depth of 180 metres below surface. The main structure, with widths varying from 1 to 5 metres, has been emplaced within a granodiorite intrusive and remains open along strike and at Depth”.
  • Kootenay Silver Inc. announced the signing of a contract with Tlasa Obras Mineras S. de R.L. de C.V. to rehabilitate the historic underground workings of the F vein at the Coulmba project in Chihuahua. Work is expected to take four months.
  • Colibri Resource Corp. reported the completion of the previously announced IP survey at Evelyn, in Sonora. The IP survey consisted of 38-line km of 3D-IP covering the eastern half of the Evelyn project. “…the highest chargeability response is spatially associated with the Main Zone within the Cerro Rojo target area…. the Company has decided to extend the IP survey to the western boundary thus completing 3D IP coverage over most of the property”.
  • Mithril Resources Ltd. released drill results from its Copalquin project in Durango. Highlighted core length results comprise: 6.8 m @ 74 gpt Au, 841 gpt Ag (including 2.1 m @ 235 gpt Au, 2,554 gpt Ag); 4.61 m @ 1.87 gpt Au, 89 gpt Ag; 7.60 m @ 2.34 gpt Au, 144 gpt Ag; 1.0 m @ 2.64 gpt Au, 167 gpt Ag; 6.0 m @ 1.41 gpt Au, 66 gpt Ag; 1.80 m @ 2.38 gpt Au, 53 gpt Ag; 1.05 m @ 2.36 gpt Au, 95 gpt Ag; 0.50 m @ 28.9 gpt Au, 471 gpt Ag; 1.66 m @ 2.41 gpt Au, 153 gpt Ag. Drilling continues along El Refugio structure, and soil sampling is in progress to define the structure a further 1.3 km to the west.

ON MINING

  • Mexus Gold US. informed its Santa Elena mine in Sonora produced 20 Oz Au last week and confirmed the presence of 30 ounces more on the activated carbon cells.
  • Fresnillo PLC. presented a report on the payments to the governments of Mexico, Chile and Peru. In Mexico, Fresnillo paid US$ 139.3 M in taxes, US$1.48 M in royalties and US$35.4 M in concession fees, for a total of US$176.2 M.
  • Santacruz Silver Mining Ltd. reported a fatality at its Rosario project in San Luis Potosi. ”The accident took place at the Membrillo mine as a result of a rock fall”.

ON FINANCING

  • Vizsla Silver Corp. granted 4.15 M options to directors, officers, employees and consultants (Panuco, Sinaloa).
  • Reyna Silver Corp. has over-sold the offering and completed a brokered private placement for gross proceeds of C$6.06 M (GuiGui, Chihuahua).
  • Radius Gold Inc. reported that Pan American Silver, its joint venture partner in at the Amalia project in Chihuahua, has paid a scheduled US$400 K property payment to Radius, and plans further drilling at the project. “Exploration completed at Amalia includes 31 holes for 10,588m of diamond core drilling, primarily at the San Pedro zone on the Amalia structure. The next targets to be drill tested are El Cuervo…. and at California”.
  • Wealth Minerals Ltd. closed the second tranche of the placement, for gross proceeds of $675 K (Coronado, Chihuahua).
  • Southern Silver Exploration Corp. closed the non-brokered private placement financing for gross proceeds of $3 M (Cerro Las Minitas, Durango).
  • Advance Gold Corp.  applied to the TSX Venture Exchange to extend the expiry date on 3.08 M share purchase warrants issued pursuant to the private placement financing in July 2019, by one year, to July 9, 2022 (Tabasqueña, Zacatecas).

ON RESOURCES AND DEVELOPMENT

  • Guanajuato Silver Company Ltd. informed on staffing mill and mine refurbishment at El Cubo, Guanajuato. Also the company is doing metallurgical studies on El Cubo and Pinguico deposits.
  • Minera Alamos Inc. informed all construction has now been completed at Santana, in Sonora. “All construction has now been completed with the full leach pad now lined and available for stacking….. First loading of mined material from the Nicho Norte pit commenced earlier this month …in preparation for the commissioning of leach operations around the end of the June”.
  • Fabled Silver Gold Corp. released drilling results from its ongoing campaign at Santa Maria, Chihuahua. Highlighted core length results comprise 10.50 m @ 0.38 gpt Au, 31 gpt Ag, 0.2% Pb, 1.0% Zn Cu (including 1.20 m @ 1.37 gpt Au, 51 gpt Ag, 0.6% Pb, 4.2% Zn); 27.50 m @ 0.19 gpt Au, 20 gpt Ag (including 1.20 m @ 0.52 gpt Au, 163 gpt Ag, 0.3% Pb, 1.0% Zn); 19.65 m @ 0.44 gpt Au, 52 gpt Ag, 0.3% Pb, 0.6% Zn (including 7.90 m @ 0.74 gpt Au, 104 gpt Ag, 0.5% Pb, 1.2% Zn); 1.00 m @ 0.33 gpt Au, 322 gpt Ag, 0.3% Pb, 0.4% Zn.
  • Discovery Silver Corp. released results from 12 drill holes targeting bulk-mining mineralization at its Cordero project in Chihuahua. Highlighted results comprise 65.9 m @ 69 gpt Ag, 0.11 gpt Au, 0.7% Pb, 3.7% Zn; 143 m @ 39 gpt Ag, 0.13 gpt Au, 0.4% Pb, 1.3% Zn; 59.5 m @ 54 gpt Ag, 0.08 gpt Au, 0.9% Pb, 1.5% Zn; 86.0 m @ 33 gpt Ag, 0.17 gpt Au, 0.3% Pb, 1.2% Zn; 82.3 m @ 44 gpt Ag, 0.06 gpt Au, 0.7% Pb, 1.5% Zn; 59.4 m @ 48 gpt Ag, 0.06 gpt Au, 1.0% Pb, 2.0% Zn; 48.9 m @ 85 gpt Ag, 0.08 gpt Au, 0.6% Pb, 1.1% Zn.
  • Vizsla Silver Corp. provided results for fourteen holes from the Napoleon prospect at the Panuco project in Sinaloa. Highlighted true width results comprise 3.73 m @ 2.85 gpt Au, 105 gpt Ag, 0.7% Pb, 1.4% Zn; 2.62 m @ 5.51 gpt Au, 476 gpt Ag, 1.5% Pb, 1.1% Zn; 8.36 m @ 5.58 gpt Au, 372 gpt Ag, 0.2% Pb, 0.9% Zn (including 2.31 m @ 18.88 gpt Au, 1,306 gpt Ag, 0.7% Pb, 2.1% Zn; 3.21 m @ 0.94 gpt Au, 30 gpt Ag, 0.1% Pb, 0.9% Zn; 3.45 m @ 1.81 gpt Au, 43 gpt Ag, 0.3% Pb, 1.2% Zn; 11.34 m @ 3.11 gpt Au, 88 gpt Ag, 0.3% Pb, 2.1% Zn; 4.87 m @ 3.70 gpt Au, 112 gpt Ag, 0.3% Pb, 1.5% Zn.
  • GoGold Resources Inc. informed on results from seven drill holes from El Favor deposit at its Los Ricos North project in Jalisco. Highlighted core length results comprise: 15.0 m @ 0.41 gpt Au, 136 gpt Ag (including 6.4 m @ 0.80 gpt Au, 258 gpt Ag); 20.6 m @ 0.13 gpt Au, 44 gpt Ag; 10.6 m @ 0.09 gpt Au, 38 gpt Ag; 6.5 m @ 0.17 gpt Au, 81 gpt Ag; 63.7 m @ 0.11 gpt Au, 47 gpt Ag (including 9.1 m @ 0.54 gpt Au, 186 gpt Ag); 61.3 m @ 0.56 gpt Au, 243 gpt Ag (including 9.3 m @ 2.06 gpt Au, 973 gpt Ag); 9.4 m @ 0.10 gpt Au, 45 gpt Ag; 6.8 m @ 0.12 gpt Au, 136 gpt Ag; 4.8 m @ 0.25 gpt Au, 88 gpt Ag; 14.4 m @ 0.17 gpt Au, 49 gpt Ag; 35.2 m @ 0.17 gpt Au, 43 gpt Ag. “Three of the four major veins (Salomon, Guitarrillas and Los Chivos) appear to converge into a 100m wide zone at the western end of the El Favor deposit in the vicinity of the Hundido Pit….”.
  • Silver Dollar Resources Inc. entered into a formal surface access agreement with the ejido Noria de Pilares, at its La Joya project in Durango.
  • Oroco Resources Corp. received approval by SEMARNAT to conduct a drilling program at its Santo Tomas project in Sinaloa. The permit allows for 46 drill locations to test the Brasiles gossan zone and the Western blind target, both supported by a 3D IP survey, and nine drill locations on the North zone for confirmation and expansion drilling.

ON DEALS AND CORPORATE ISSUES

  • Vizsla Silver Corp. informed on the approval of the proposed plan of arrangement on which Vizsla Silver is to spin-out its British Columbia exploration assets to Vizsla Copper Corp. (Panuco, Sinaloa).
  • Fortuna Silver Mines Inc. and Roxgold Inc. informed two leading proxy advisory firms have recommended that both Fortuna and Roxgold shareholders vote for the proposed business combination (San Jose, Oaxaca).
  • Benjamin Hill Mining Corp. announced the appointment of David M. Jones, M.Sc., as technical advisor to the company (Sonora Gold, Sonora).
  • Orogen Royalties Inc. announced its shares have been qualified to trade on the OTCQX Best Market (Ermitaño, Sonora).

ON SOCIAL RESPONSIBILITY

  • Peñasquito informed its water purification plant in Cedros has increased its capacity to 400 cubic meters per day. The community, which doubled its population since the development of the mine, receives the water at no cost. There are two other water purification plants run by the company at the Mesas and Charcos communities.
  • Greath Panther Mining published its 2020 sustainability report, describing its safety performance, Covid prevention, zero sanctions, decrease in water consumption, community engagement, gender opportunities and diversity policy.
  • The Chihuahua Mining Cluster is aiding in the community effort to extinguish forest fires in the Sierra Madre.
  • Newmont Corp. launched its first Climate Strategy Report, which outlines the Company’s climate-related risks and opportunities, strategic planning, and pathways to achieving climate targets.
  • Industrias Peñoles informed on the reforestation effort with native species in La Laguna region (Coahuila-Durango).
  • Peñoles and Fresnillo PLC are to support micro business and auto-development economic proyects in Caborca, Sonora.

On the image below:  Sheeted quartz veining in granodioritic intrusive rocks in Sinaloa. Picture by Jorge Cirett.

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

By Jorge Cirett

During the 7th week of the year (February 15th to February 21st, 2021), there were at least 42 press releases by companies working in Mexico. To note, nine companies posted exploration advances on their properties (with GoGold’s Casados discovery deemed the most significant), six presenting quarterly results, two informing on power cuts, six posting on financing or share options, nine on project development and two on corporate issues. ON MEXICO ISSUES, the Mexican mining sector is dealing with several (government induced) challenges and great opportunities. The Nuevo Leon State government intends to push its mining sector. Camimex points out the goal of the energy bill should be to promote the reduction of the electricity cost. ON EXPLORATION, in Sonora, Tarachi Gold released drilling results from the San Javier concession; Tocvan Ventures initiated the next exploration campaign at Pilar. In Chihuahua, Radius Gold released drilling results from the Amalia project; Silver Spruce is to carry a LidDar survey at Pino de Plata; Mammoth Resources released observations by independent consultants on its Tenoriba property. In Sinaloa, Prismo Metals presented drilling results on Palos Verdes; Vizsla Silver informed seven rigs are now churning at Panuco; Brigadier Gold released drilling results from its Picachos project. In Jalisco, Stroud Resources informed on the approval of its drilling permit for Santo Domingo, Hostotipaquillo. ON MINING, Starcore International, Pan American Silver, Golden Minerals, Hecla Mining, Newmont, and First Majestic released quarterly and full year 2020 reports. Excellon and Gatos Silver informed on work affected by the power cuts in the north of the country. ON FINANCING, SGold79 Mines and Vizsla Silver granted options to directors, officers and employees; Consolidated Zinc, Orogen Royalties, Van Gold Mining and Brigadier Gold informed on their financing rounds. Heliostar Metals qualified to trade on the OTCQX Best Market. ON RESOURCES AND DEVELOPMENT, Avino Silver will drill 12,000 m on the Avino property. Sonoro Gold released results from 24 holes at Cerro Caliche. VanGold released positive results from the PEA on El Cubo and El Pinguico in Zacatecas. McEwen Mining filed the FS on the Fenix project. GoGold Resources made a discovery at Los Ricos North. Coeur Mining released the 2020 resource estimate for Palmarejo. Capitan Mining released drilling results from the Peñoles project. Golden Tag released results from drilling at San Diego, Velardeña. GR Silver Mining reported drilling results from Plomosas.  ON DEALS AND CORPORATE ISSUES, Azure Minerals is divesting its Mexican portfolio. Premier Gold shareholders had to vote in February 19 on the arrangement with Equinox Gold. ON SOCIAL RESPONSIBILITY, Minera Media Luna is to make a large investment during the next three years at the Media Luna project in Guerrero, with a significant impact in the communities of the area.

ON MEXICO ISSUES

  • The Mexican Mining Sector is dealing with several challenges and great opportunities, according to mining companies executives. The outright denial to grant mining concessions, the lack of a medium term regulatory view, security issues, the blockage by SEMARNAT of several projects, the lack of clarity and rules and lagging paperwork have to be weighed against the great mineral potential of the country, and its qualified workforce.  
  • The Nuevo Leon State government seeks to foster the mining activity on the southern part of the state. Nuevo Leon has significant deposits of barite, clays, limestone, dolostone, gypsum, phosphorite and talc, among other minerals.
  • Camimex (Cámara Minera de México) pointed out that the goal of an energy bill should be to promote the reduction of the electricity cost, not to favor any given company. With the introduction of the auto supply figure a few years ago mining companies saw the electricity cost go down from US$0.12-$0.13 Kw/hr to US$0.065 Kw/hr, while those that rely on the government supplied electricity pay US$0.08 and $0.09 Kw/hr. Miners in Perú and Chile pay US$0.06 Kw/hr and those in USA and Canada US$0.04 Kw/hr and US$0.02 Kw/hr respectively.
  • Newmont’s Peñasquito mine in Zacatecas produced 520 K ounces of gold and 934 K gold equivalent ounces in 2020. Production for 2021 is estimated at 660 K ounces of gold and 1.12 M gold equivalent ounces.

ON EXPLORATION

  • Radius Gold Inc. reported results from its phase four drilling program operated by Pan American Silver Corp. at its Amalia project in Chihuahua. Highlighted true width results comprise 6.5 m @ 0.59 gpt Au, 151 gpt Ag; 0.60 m @ 1.48 gpt Au, 475 gpt Ag; 5.0 m @ 1.73 gpt Au, 70 gpt Ag; 5.5 m @ 0.93 gpt Au, 99 gpt Ag. The high-grade San Pedro ore shoot has been defined for 410 meters down-dip.
  • Tarachi Gold Corp. released assay results from the first nine diamond holes completed on the San Javier concession, at its Tarachi project in Sonora. Highlighted core-length intervals comprise 3.0 m @ 1.58 gpt Au, 1.0 m @ 1.80 gpt Au, 1.0 m @ 6.08 gpt Au, 14.4 m @ 0.21 gpt Au; 9.0 m @ 0.61 gpt Au; 4.0 m @ 0.86 gpt Au, 2.6 m @ 1.52 gpt Au, 2.0 m @ 11.90 gpt Au (including 1.0 m @ 21.10 gpt Au); 12.0 m @ 0.63 gpt Au; 5.6 m @ 5.39 gpt Au; 1.0 m @ 15.70 gpt Au; 17.0 m @ 0.62 gpt Au; 10.6 m @ 1.6 gpt Au. “the gold mineralization is situated along open brittle structures containing over 20 percent sulphides, mainly pyrite with minor quartz veining/veinlets”.
  • Prismo Metals Inc. presented results from its initial five-hole 573 m diamond drilling program at its Palos Verdes project in Sinaloa. The program was designed to test for mineralization continuity to depth and along strike to previous reconnaissance drilling. Highlighted true width results comprise 3.2 m @ 0.13 gpt Au, 69 gpt Ag, 0.14% Cu, 0.1% Pb, 0.3% Zn; 2.5 m @ 0.24 gpt Au, 17 gpt Ag, 0.09% Cu, 0.2% Pb, 0.6% Zn; 1.3 m @ 0.73 gpt Au, 38 gpt Ag, 0.19% Cu, 0.6% Pb, 3.9% Zn; 0.9 m @ 0.03 gpt Au, 6 gpt Ag, 0.06% Cu, nil Pb, 1.4% Zn.
  • Silver Spruce Resources Inc. has contracted Eagle Mapping Ltd. to carry out a LiDar survey on the Pino de Plata property in Chihuahua. The survey is to produce an orthorectified color aerial photography and an accurate digital elevation model (DEM).
  • Vizsla Silver Corp. announced the arrival of two drill rigs to its Panuco property in Sinaloa. With these, a total of seven rigs is now operating in Panuco. The company completed over 28,000 m of drilling last year and plans to complete more than 40,000 m in the first half of 2021.
  • Brigadier Gold Ltd. provided results from its diamond drill and underground sampling programs at Picachos, Sinaloa. Drill core length highlighted true width (TW) intervals comprise 30 m @ 1.27 gpt Au, 212 gpt Ag; 3.5 m @ 1.07 gpt Au, 18 gpt Ag, 0.39% Cu, 0.15% Zn; 6.4 m @ 0.15% Zn; 10.8 m @ 0.22% Zn; 1.6 m @ 5.08 gpt Au, 35 gpt Ag, 1.90% Cu, 0.22% Zn; 183.5 m @ 0.21 gpt Au, 2 gpt Ag, 0.19% Pb, 0.37% Zn (including 0.9 m @ 10.65 gpt Au and 1.0 m @ 6.26 gpt Au, 0.54% Pb, 0.28% Zn). Highlighted trench TW intervals comprise 0.4 m @ 49.60 gpt Au, 31 gpt Ag, 0.34% Pb, 0.37% Zn; 0.8 m @ 9.70 gpt Au, 0.52% Pb, 0.32% Zn; 2.6 m @ 2.32 gpt Au, 0.14% Zn; 1.0 m @ 20.14 gpt Au, 36 gpt Ag, 0.14% Cu, 0.74% Pb, 2.51% Zn; 2.0 m @ 11.55 gpt Au, 0.12% Cu, 0.23% Pb, 0.47% Zn; 0.7 m @ 7.95 gpt Au, 43 gpt Ag, 3.26% Cu, 0.22% Pb; 0.5 m @ 109.14 gpt Au, 20 gpt Ag; 4.5 m @ 2.56 gpt Au, 4 gpt Ag, 0.19% Cu, 0.64% Pb, 0.86% Zn; 1.2 m @ 23.45 gpt Au, 6 gpt Ag, 0.19% Pb, 0.12% Zn “Of the 28 holes drilled to date, fourteen (1704 metres) were drilled to test the San Agustín Vein, 10 holes (1029 metres) tested surface exploration targets defined by trenching, 2 holes (168 metres) tested under the historic San Antonio Mine and one hole tested under the historic La Gloria Mine”. A second drill rig is being added for the commencement of the phase two drilling campaign.
  • Stroud Resources Ltd. informed the drill permit application has been approved for its Santo Domingo property in Hostotipaquillo, Jalisco. The first phase consists of 12 drill holes, and a second phase comprises 38 holes to expand the mineral resources. “Stroud’s exploration of the two main mineralized zones has drilled through many of the workings. These zones; La Rayas and Guadalupe, are a series of banded to breccia style epithermal quartz carbonate vein systems represented with miargyrite, galena, sphalerite, argentite and native silver and gold. La Rayas is 30 to 35 metres wide and Guadalupe is 15 to 30 metres wide. Both are parallel structures with greater than a 700-metre strike length and about 300 metre depth”.
  • Mammoth Resources Corp. released observations by independent consultants on its Tenoriba property in Chihuahua. According to them the mineralization in the area is of epithermal high sulfidation type and occurring near the angular unconformity between the Lower and Upper Volcanic Groups. A thorough 2-year exploration program was recommended to evaluate the main prospect areas and to address areas that have to date seen little or no work.
  • Tocvan Ventures Corp. announced the start of the next phase of exploration at El Pilar in Sonora. The planned work is to include mapping and sampling of key target areas across the project. The property is interpreted as a structurally controlled low-sulfidation epithermal system in andesitic and rhyolitic volcanic rocks.

ON MINING

  • Excellon Resources Inc. informed it is looking for alternative energy sources for its Platosa mine in Durango. The energy utilised by the company is generated with natural gas, and it has seen its price multiplied up to a hundred times due to the intense cold wave in Texas. The price increase is expected to be a short-term event.
  • Starcore International Mines Ltd. announced production results for the third quarter ended January 31, 2021. At its San Martin mine in Queretaro, 57.3 K tonnes were milled @ 1.66 gpt Au, 22.9 gpt Ag, recovering 88.8% and 57.1% respectively to produce 3,063 Oz AuEq. A 6,000 m drill program has been implemented on the northwestern and eastern parts of the mine, matched with a development program of approximately 1,200 meters to cover both zones under exploration.
  • Mexus Gold US. continues mining at its Santa Elena project in Sonora. After a slowdown due to a Covid outbreak, operations are now gaining pace.
  • Pan American Silver Corp. reported audited financial results for 2020 and the Q4 of the same year, including some figures from its Mexican operations. At La Colorada, in Zacatecas, 1.19 M Oz Ag, 800 Oz Au were produced in Q4 and 5.02 M Oz Ag, 3,500 Oz Au during the year. At Dolores, in Chihuahua, 0.76 M Oz Ag, 30,500 Oz Au were produced in Q4 and 5.02 M Oz Ag, 98,000 Oz Au during the year. Cash cost and AISC per Ag Oz for the year stood at $6.99 and $10.80 for La Colorada and ($2.48) and $6.17 for Dolores.
  • Golden Minerals Co. released financial results for 2020. During the year the Rodeo open pit in Durango was started, with ore to be processed at the Velardeña oxide mill and an expected production between 12 K and 14 K Oz Au for 2021. In Yoquivo, Chihuahua, several new veins were discovered. The lease of the Velardeña mill to Hecla was terminated in November 2020, gathering $5.6 M in revenue. The Santa María property was farmed out for $4 M, whilst the Velardeña mine and sulfide mill might restart late in 2021. Cash and cash equivalents of $9.7 M by the end of the period.
  • Hecla Mining Co. presented 2020 results, including some figures from its Mexican operations. At San Sebastian, in Durango, 1.0 M Oz Ag, 7,223 Oz Au were produced in the year (0.2 M Oz Ag, 1,159 Oz Au in Q4), with the mill operating at 474 tpd when in production. Also in San Sebastian, El Tigre and El Bronco veins that were discovered under thick soil cover in 2020, can be up to 8.5 m in width and extend for more than 1.6 km. The best true width intercepts are 2.90 m @ 1,384 gpt Ag, 6.84 gpt Au for El Bronco vein and 1.07 m @ 504 gpt Ag, 2.80 gpt Au for El Tigre vein.
  • Newmont Corp. announced Q4 and full year 2020 results, including figures from its Peñasquito operations in Zacatecas. During the quarter 201 K Oz Au and 246 K Oz AuEq were sold at an AISC of $746 and $795 per Oz respectively. For the year, 512 K Oz Au were produced and 934 K Oz AuEq at an AISC of $806 and $828 per Oz respectively. For 2021 production from Peñasquito is expected to reach 660 K Oz Au and 1,120 K Oz AuEq.
  • First Majestic Silver Corp. released its financial results for the fourth quarter and year 2020. For the year, 2.21 M tonnes were processed to produce 11.6 M Oz Ag, 20.38 M Oz AgEq at a cash cost of $5.09 per Oz Ag and an AISC of $13.92 per Oz AgE.
  • Gatos Silver Inc. reported electricity from Mexico’s national power grid supplying its Cerro Los Gatos mine in Chihuahua has been restricted, due to recent severe winter storms in Texas. The project facilities have power generators capable of sustaining the mine and field camp operations, but not the processing plant; underground mining will continue at a reduced rate and a planned shutdown for the processing plant will be completed during this temporary power restriction.

ON FINANCING

  • SGold79 Mines Ltd. granted 500 K common shares to Mr. Paul Carrelo, the newly appointed independent director (Higo Blanco, Oaxaca).
  • Consolidated Zinc Ltd. informed there are firm commitments to raise A$2.55 M in gross proceeds. The funds are required to relieve short term cashflow pressure due to operational issues at third-party processing facilities since November 2020. (Plomosas, Chihuahua).
  • Orogen Royalties Inc. cancelled the previously announced private placement (royalties in Ermitaño, Sonora).
  • VanGold Mining Corp. has further expanded its non-brokered private placement financing for gross proceeds of $16.95 M (El Cubo, Guanajuato).
  • Heliostar Metals Ltd. announced it has qualified to trade on the OTCQX Best Market, upgrading from the OTCQB Venture Market (La Lola, Sonora).
  • Vizsla Silver Corp. granted 2.14 M options to directors, officers, employees and consultants (Panuco, Sinaloa).
  • Brigadier Gold Ltd. announced a non-brokered private placement financing to raise up to $1 M.

ON RESOURCES AND DEVELOPMENT

  • Avino Silver and Gold Mines Ltd. has a 12,000 meters drilling program for its 1,104 hectares Avino property in Durango. Of these, 2,000 meters are planned on El Trompo vein, 3,000 meters on the Santiago vein, 2,500 meters on the Avino ET area and 4,500 meters on the Avino West area. Other areas that area to see investment include a dry stack tailings and improvements on circuit 4. Capital expenditures are expected to be between $6 to $8 M.
  • Vangold Mining Corp. announced positive results from the preliminary economic assessment (PEA) for the combined El Cubo and El Pinguico project in Guanajuato. There are 718.6 K tonnes @ 160 gpt Ag, 1.90 gpt Au containing 7.2 M Oz AgEq as indicated resources and 1.45 M tonnes @ 214 gpt Ag, 2.78 gpt Au containing 20.4 M Oz AgEq as inferred resources. “On an after-tax basis, the Combined Project generates a Base Case NPV (5%) of $32.9 M and an IRR of 105%, excluding El Cubo acquisition costs. Using commodity prices of $22.41/oz Ag and $1756/oz Au, which are +15% above the Base Case (yet still lower than current spot prices), the after-tax NPV(5%) is $79.0 M and the IRR is 344%”.
  • Sonoro Gold Corp. released assay results from 24 holes at its Cerro Caliche project in Sonora. Some of the highlighted core length intervals comprise 6.10 m @ 0.73 gpt Au, 18 gpt Ag; 7.62 m @ 3.09 gpt Au, 7 gpt Ag; 4.57 m @ 0.75 gpt Au, 1 gpt Ag; 6.10 m @ 0.78 gpt Au, 1 gpt Ag; 3.04 m @ 1.15 gpt Au, 1 gpt Ag; 3.05 m @ 2.32 gpt Au 2 gpt Ag. The Buena Suerte zone strike length is now 900 m long, and continuous mineralization has been confirmed along 2 kilometers of the El Rincón-Veta de Oro-Abejas vein and stockwork. A new zone, Bellotoso, has been identified, with a 2 kilometers strike length.   
  • McEwen Mining Inc. filed the feasibility study (FS) on the Fenix project, Sinaloa. The report envisions a 9.5-year mine life with after-tax IRR of 28% using $1,500/Oz gold and $17/Oz silver. Average annual production is projected at 26 K Oz Au in Phase 1 and 4.5 M Oz AgEq in Phase 2.
  • GoGold Resources Inc. released results of nine diamond drill holes from the Casados deposit in the Los Ricos North project. Limited historical mining averaged 1.5 m in width at the Casados vein, but the present drilling intercepted mineralized widths over 20 m, and a second vein, also greater than 20 m in width. Highlighted core length intervals comprise 6.4 m @ 0.19 gpt Au, 42 gpt Ag; 6.9 m @ 0.24 gpt Au, 44 gpt Ag; 56.5 m @ 0.37 gpt Au, 144 gpt Ag; 22.5 m @ 0.32 gpt Au, 97 gpt Ag (including 4.9 m @ 1.05 gpt Au, 307 gpt Ag); 27.5 m @ 0.48 gpt Au, 214 gpt Ag (including 1.3 m @ 4.67 gpt Au, 2,390 gpt Ag); 59.9 m @ 0.30 gpt Au, 84 gpt Ag; 20.3 m @ 0.51 gpt Au, 143 gpt Ag; 22.5 m @ 0.29 gpt Au, 84 gpt Ag; 53.3 m @ 0.40 gpt Au, 99 gpt Ag; 21.4 m @ 0.63 gpt Au, 136 gpt Ag; 21.3 m @ 0.34 gpt Au, 104 gpt Ag; 19.3 m @ 0.42 gpt Au, 135 gpt Ag.
  • Coeur Mining Inc. reported its 2020 mineral reserves and resources, including figures from its operations in Mexico. At Palmarejo in Chihuahua, 68,850 m were drilled in 180 holes across 11 targets. Highlighted results include 6.9 m @ 4.3 gpt Au, 151 gpt Ag; 5.2 m @ 6.4 gpt Au, 179 gpt Ag at the La Patria zone; 3.4 m @ 2.8 gpt Au, 525 gpt Ag at the Bavisa zone and 6.8 m @ 9.7 gpt Au, 640 gpt Ag; 11.2 m @ 6.1 gpt Au, 430 gpt Ag; 6.0 m @ 9.1 gpt Au, 568 gpt Ag on the Hidalgo zone.
  • Capitan Mining Inc. reported results from the last two holes of its 2020 drill campaign at Peñoles, in Durango.  Highlighted core length intercepts comprise 64 m @ 0.50 gpt Au, 7 gpt Ag (including 13.7 m @ 0.93 gpt Au, 7 gpt Ag); 21.3 m @ 0.25 gpt Au; 15.2 m @ 0.25 gpt Au; 42.7 m @ 0.17 gpt Au, 35.1 m @ 0.31 gpt Au; 35.1 m @ 0.21 gpt Au, 4 gpt Ag. The Hanging Wall zone has been confirmed and delineated for over 600 m.
  • Golden Tag Resources Ltd. released results from its ongoing 4,500 m drilling program at the San Diego property in Durango. The infill sampling of historic holes highlighted core intercept results comprising 9.36 m @ 0.03 gpt Au, 51 gpt Ag, 0.26% Pb, 0.23% Zn; 50.52 m @ 0.03 gpt Au, 25 gpt Ag, 0.24% Pb, 0.29% Zn; 175.30 m @ 0.09 gpt Au, 30 gpt Ag, 0.64% Pb, 0.55% Zn (including 48.41 m @ 0.12 gpt Au, 34 gpt Ag, 0.69% Pb, 0.80% Zn and 27.30 m @ 0.16 gpt Au, 58 gpt Ag, 1.30% Pb, 0.76% Zn) in one hole; 50.05 m @ 0.04 gpt Au, 0.43% Pb, 0.41% Zn; 9.90 m @ 0.06 gpt Au, 19 gpt Ag, 0.51% Pb, 0.37% Zn; 298 m @ 0.03 gpt Au, 30 gpt Ag, 0.67% Pb, 0.70% Zn.
  • GR Silver Mining Ltd. reported results from the current drilling program in the San Juan area of its Plomosas project in Sinaloa. Highlighted core length intercepts comprise 2.5 m @ 2,195 gpt Ag, 1.12 gpt Au, 0.3% Cu; 8.8 m @ 87 gpt Ag, 0.31 gpt Au, 0.8% Pb, 1.9% Zn; 1.1 m @ 244 gpt Ag, 0.53 gpt Au, 1.0% Pb, 2.1% Zn, 0.4% Cu; 22 m @ 70 gpt Ag, 0.15 gpt Au, 0.3% Pb, 0.3% Zn; 15.0 m @ 42 gpt Ag, 0.10 gpt Au, 0.3% Pb, 0.2% Zn; 3.4 m @ 578 gpt Ag, 0.20 gpt Au, 0.5% Pb, 1.3% Zn; 8.7 m @ 0.4% Zn; 18.3 m @ 2 gpt Ag, 0.06 gpt Au, 0.1% Pb, 0.7% Zn. These drilling results continue to define high-grade epithermal mineralization in the San Juan area and towards the nearby San Francisco vein.

ON DEALS AND CORPORATE ISSUES

  • Azure Minerals Ltd. announced it is looking to divest its Mexican properties portfolio. The company “has commenced a strategic review of its precious metals and base metals projects in Mexico, including the 100%-owned Alacrán silver-gold-copper and Oposura zinc-lead-silver projects”.
  • Premier Gold Mines Ltd. reminded its shareholders of the meeting that was to be held on February 19th to vote on the arrangement between Premier Gold and Equinox Gold Corp. regarding the acquisition of the company (Mercedes, Sonora).

ON SOCIAL RESPONSIBILITY

  • Minera Media Luna announced an investment of 12 billion pesos (12 thousand million pesos, or US$600 M) in the next three years at its Media Luna project in Guerrero. Currently, at its Limon-Guajes mine 70% of the 900 employees and 1,300 contractors are from the state. It was also stated that about 40% of its workforce is composed by women.

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 on the old Mazatlán-Durango road, geologist Guillermo Contreras for scale. Picture by Jorge Cirett.

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

Hydrothermal breccia

By Miguel A Heredia

During the second week of the year (February 08th to February 14th, 2021), at least 28 press releases were announced by companies working in Mexico and 11 news published by the media, with nine disclosing deals and corporate issues, six announcing financial rounds, six reporting on resources and development of their mine operations, six commenting on Mexican issues, five informing on exploration results, five discussing social issues, and two communicating production and financial results.  ON MEXICO ISSUES, Environmental, social and corporate governance (ESG) criteria are a key factor in Accendo Banco’s investments in Mexico’s mining sector, according to its CEO, Javier Reyes. Mining in Mexico registered a 19.5% rebound during October, 2020, according to the Monthly Indicator of Industrial Activity by Federal Entity (IMAIEF) released by the Institute National Statistics and Geography (INEGI). Tatiana Clouthier, head of the Secretariat of Economy declared that mining in Mexico must become a sustainable activity that prioritizes three issues: economic, human and nature. The energy policies that the federal government is following are already affecting the development of projects for the self-supply of energy by the mining sector. Experts detailed the main challenges that the Mexican mining sector will face in 2021, the year in which the industry is expected to play a leading role in the economic reactivation after confinements. Almost a year of delay accumulates the USD $60M of Chinese investment to construct the industrial park at Guadalupe, Zacatecas.   ON EXPLORATION, In Sonora, Canuc commenced a drill program at its San Javier project, Carlyle and Riverside initiated a phase one drilling program at its Cecilia project, Tocvan and Colibri reported drill results from its El Pilar project, and Minaurum released results from its phase II drilling program conducted at its Alamo Silver project.   ON MINING, Equinox provided 2021 guidance and outlined growth and investment plan (Los Filos mine, Guerrero). GoGold reported Q4, 2020 production and financial results from its Parral Tailings project in Chihuahua. ON FINANCING, Bacanora announced that 106,995,885 New Ordinary Shares were admitted to trading on London Stock Exchange market (Sonora Lithium project, Sonora). Silver Tiger announced that it entered into a CAD $20M bought deal financing (El Tigre, Sonora). Comet raised $1M in strategic investor placement (Santa Teresa project, Baja California). Orogen announced a private placement for gross proceeds of $2.7M (Ermitaño property, Sonora). Prospero Silver announced a consolidation of its common shares (Pachuca SE property, Hidalgo). SilverCrest entered into a bought deal financing agreement for aggregate gross proceeds of USD $120M (Las Chispas project, Sonora).  ON RESOURCES AND DEVELOPMENT, Bacanora commenced initial site activities at its Sonora Lithium project in Sonora. Excellon provided an update on ongoing exploration at its Platosa mine in Durango. GR Silver released underground and surface drilling results from its Plomosas project in Sinaloa. Newmont reported 2020 mineral reserves and resources for its Peñasquito mine in Zacatecas. Orla filed updated FS on its Camino Rojo Oxide project in Zacatecas. Southern Silver released drill results from its Cerro Las Minitas project in Durango. ON DEALS AND CORPORATE ISSUES, Carlyle announced that it has now met its first-year exploration commitments of its option agreement with Riverside Resources to acquire 100% of the Cecilia Gold-Silver project. Fabled granted an aggregate of 350K stock options to certain consultants, to acquire one common share of Fabled at an exercise price of $0.22 per common share until September 1, 2021 (Santa Maria project, Chihuahua). Fortuna announced management changes (San Jose mine, Oaxaca). Gold Resource announced the appointment of a new member to its Board of Directors (Arista mine, Oaxaca). Gold79announced the appointment of a new member to its Board of Directors and granted him with 500K common shares at a price of $0.10 per share and expire on February 12, 2031 (Taviche project, Oaxaca). Orogen announced that its current President and Chief Executive Officer has been appointed to the Board of Directors (Ermitaño project, Sonora). Premier announced that two independent adviser firms have recommended that holders of Premier´s common shares and options approve the proposed acquisition of Equinox (Mercedes mine, Sonora). Tarachi Gold signed a purchase agreement with Manto Resources to acquire the Magistral del Oro mill and tailings project in Durango. Vizsla announced it will change its name to Vizsla Silver Corp (Panuco project, Sinaloa).  ON SOCIAL RESPONSIBILITY, Coanzamex (GoGold) supported the Municipal Shelter of Parral, Chihuahua with blankets. Fresnillo plc organized literary caravan and delivered books to children from rural communities. Peñoles signed an alliance with the UNAM Foundation so that medical fellows serve the communities near its operating units in Durango, State of Mexico, Guerrero and Zacatecas. Peñoles encourages the presence of women in the areas of science, innovation and technological development. Santa Elena Mine (First Majestic) in connection with the Sonora A.C. Mining Cluster are carrying out a support program for merchants in the Banámichi and Río Sonora region.

ON MEXICO ISSUES

  • Environmental, social and corporate governance (ESG) criteria are a key factor in Accendo Banco’s investments in Mexico’s mining sector, according to its CEO, Javier Reyes. Investment deals recently advanced by the bank include a proposed USD $12M loan to finance construction of Telson Mining’s Tahuehueto gold mine in Durango. Candelaria Mining also signed a USD $9M loan agreement with Accendo in June 2020 for the construction of its Pinos gold project in Zacatecas. Lastly, Accendo signed a strategic alliance with Vancouver-based Empress Royalty in August last year. The agreement aims to acquire royalties, cash flows and other investments in Mexico’s mining sector.
  • Mining in Mexico, registered a 19.5% rebound during October, 2020 according to the Monthly Indicator of Industrial Activity by Federal Entity (IMAIEF), released by the Institute National Statistics and Geography (INEGI).
  • Tatiana Clouthier, head of the Secretariat of Economy declared that mining in Mexico must become a sustainable activity that prioritizes three issues: economic, human and nature. On the other hand, Clouthier highlighted the work that mining companies of all levels have done to accelerate the economic reactivation of the country. “The Gross Domestic Product (GDP) that is generated through mining is about 3.2% and we are pleased to see that these numbers can continue to move in favor of the economy and Mexican families,” she said. “In the Ministry of Economy we have already invited large, medium and small companies and associations that are linked to this issue to be able to find solutions, to be able, within the framework of the law, to activate what we have to activate for this task it can be managed better and it can yield better results in favor of our country”, she assured.
  • The energy policies that the federal government is following are already affecting the development of projects for the self-supply of energy by the mining sector. According to data from the Mexico Mining Chamber (CAMIMEX), electricity for this industry is 33% and up to 350% more expensive compared to other countries, which increases its production costs. That is why the mining companies have decided to invest and develop electricity generation projects, which range from combined cycle plants to solar or wind farms. Despite this, many of these plans have been affected by current policies on energy and the action of regulatory bodies, such as the Energy Regulatory Commission (CRE), which reduced the granting of permits to a minimum. President of CAMIMEX assured in recent days that half of the energy consumed by the mining industry is under the self-supply model.
  • Experts detailed the main challenges that the Mexican mining sector will face in 2021, the year in which the industry is expected to play a leading role in the economic reactivation after confinements. The main problems for the sector are the current health complications associated with the COVID-19 pandemic, a series of directly or indirectly legislative proposals with potential negative impacts on the mining sector such as the direct initiatives to try to raise taxes at the state of federal level or indirect initiatives as the elimination of the outsourcing or initiatives of the electricity industry. Deputies of Mexico received in January a proposal from a legislator of the ruling party Morena aimed at reviewing the fees paid for mining concessions. It proposed replacing per hectare fees with potentially much higher charges linked to production. Another problem is the “profound ignorance” of the importance of the mining industry.
  • Almost a year of delay accumulates the USD $60M of Chinese investment to construct the industrial park at Guadalupe, Zacatecas. This delay has been caused by the COVID-19 pandemic.   

ON EXPLORATION

  • Canuc Resources Corporation, commenced a drill program at its San Javier project. The program will be focused on testing geophysical anomalies and mineralized breccia and stockwork zones as reported previously.
  • Carlyle Commodities Corp. and Riverside Resources Inc., initiated a six drill holes, phase one program at its Cecilia project designed to test down to roughly 250m in depth over the Cerro Magallanes rhyolitic dome. The drill program will commence to test the San Jose structure where sampling returned values up to 48.3 g/t Au over 0.75m at surface.
  • Tocvan Ventures Corp. and Colibri Resource Corporation reported drill results from its phase one drilling program performed at its El Pilar project in Sonora, which consisted of nine RC holes for a total of 1,505m. Significant drill intercepts were encountered in hole JES-20-32 with 1.6 g/t Au over 94.6m, including 10.8 g/t Au and 38 g/t Ag over 9.2m; hole JES-20-33 with 1.1 g/t Au over 41.2m, including 6 g/t Au and 12 g/t Ag over 3.1m; and hole JES-20-36 with 2.5 g/t Au and 73 g/t Ag over 24.4m, including 6.3 g/t Au and 192 g/t Ag over 9.2m, including 33.4 g/t Au and 1,090 g/t Ag over 1.5m.
  • Minaurum Gold Inc., released results from its phase II drilling program conducted at its Alamo Silver project. “Drilling at the Europa-Guadalupe target outlined a prospective south-west (“SW”) plunging silver shoot along with the potential for additional high-grade mineralization to the north and south of the area drilled. At the Promontorio target, drilling returned high-grade mineralization in excess of 100m below historical workings, indicating the potential for two SW-plunging silver shoots”. At Europa-Guadalupe Zone, Significant drill intercepts were encountered in hole AL20-054 with 342 g/t Ag, 0.76% Cu, and 1% Zn over 3.85m, including 1,185 g/t Ag, 2.19% Cu, and 1.2% Zn over 0.8m; and hole AL20-050 with 196 g/t Ag, 0.26% Cu, 0.35% Pb, and 1.1% Zn over 3.25m, including 784 g/t Ag, 1.05% Cu, and 2.5% Zn over 0.55m. At Promontorio Zone, hole AL20-064 intersected 528 g/t Ag, 0.8 g/t Au, 0.83% Cu, 2.4% Pb, and 1.5% Zn over 3.7m, including 1,203 g/t Ag, 2.45 g/t Au, 1.4% Cu, 5.1% Pb, and 2.8% Zn over 1.05m; and hole AL20-069 with 161 g/t Ag, 0.5 g/t Au, 0.24% Cu, 2.15% Pb, and 5.9% Zn over 4m, including 327 g/t Ag, 0.9 g/t Au, 0.23% Cu, 2.5% Pb, and 6.6% Zn over 1m. At San Jose Zone, hole AL20-066 encountered 314 g/t Ag, 0.27% Cu, 0.2% Pb, and 0.2% Zn over 4.45m, and hole AL20-075 with 460 g/t Ag, 0.15% Cu, 0.5% Pb, and 0.85% Zn over 2.15m. At Travesia Zone, hole AL20-077 intersected  210 g/t Ag, 0.59% Cu, 1.3% Pb, and 1.3% Zn over 4.4m, including 355 g/t Ag, 0.7 g/t Au, 1.02% Cu, 4.6% Pb, and 3.2% Zn over 0.9m.

ON MINING

  • Equinox Gold Corp., provided 2021 guidance and outlined growth and investment plan. It expects to produce 170K-190K Oz Au from its Los Filos mine in Guerrero at cash and AISC of USD $1,125-1,200 and USD $1,330-1,390 respectively. The company has planned a total sustaining and non-sustaining capital spend of USD $133M for the year.
  • GoGold Resources Inc., reported Q4, 2020 production and financial results from its Parral Tailings project in Chihuahua. The company produced 298.6KOz Ag, 3,632 Oz Au and 280K Lb Cu (614.15K Oz AgEq) at cash and AISC of USD $12.27 and USD $15.19 per Oz Ag sold. GoGold reported revenue of USD $14,078M, a net income of USD $4.23M, and a cash flow from operation of USD $5.86M.  

ON FINANCING

  • Bacanora Lithium plc., announced that 106,995,885 New Ordinary Shares were admitted to trading on the London Stock Exchange market (Sonora Lithium project, Sonora).
  • Silver Tiger Metals Inc., announced that it entered into a CAD $20M bought deal financing with Sprott Capital Partners LP.  Net proceeds will be used to fund continued exploration at its El Tigre project in Sonora, as well as for general working capital and business development purposes.
  • Comet Resources Ltd., announced that it raised $1M in strategic investor placement. Part of the raised funds will be used to support exploration activities at its (Santa Teresa project in Baja California.
  • Orogen Royalties Inc., announced a private placement for gross proceeds of $2.7M (Ermitaño property, Sonora).
  • Prospero Silver Corp., announced a consolidation of its common shares on the basis of one new post-consolidation common share for every three pre-consolidation common shares effective as of February 11, 2021.  There will be no name change or trading symbol change in conjunction with the consolidation (Pachuca SE property, Hidalgo).
  • SilverCrest Metals Inc., entered into a bought deal financing agreement for aggregate gross proceeds of USD $120M. Net proceeds of the offering will be used to expand resources and reserves at its Las Chispas project in Sonora through further drilling, to optimize the mine and processing plant design, to explore regional targets, and for general working capital purposes. 

ON RESOURCES AND DEVELOPMENT

  • Bacanora Lithium plc., commenced initial site activities at its Sonora Lithium project in Sonora. Bacanora engaged a local specialist ecological service company to rescue and remove surface vegetation and topsoil in the area proposed for the construction of the processing plant. The company is also upgrading the main access road for providing access to heavy equipment to commence the bulk site earthworks later in the year.
  • Excellon Resources Inc., provided an update on ongoing exploration at its Platosa mine in Durango. The company is drilling regional targets such as Jaboncillo and the PDN areas, as well as drilling the Platosa extensions and Platosa Underground to support resource definition and expansion. At Jaboncillo zone, located 11 km north of Platosa mine, Excellon identified in a previous drilling campaign a 1.2km length gossans mineralization.  The current drilling program is targeting the source of these gossans and the existence of massive sulphides. At PDN zone, located 2 km north of Platosa mine, it is testing a large 800m by 60m target generated with multiple sets of geophysical data, surface mapping and sampling. This target is interpreted as a deeper skarn related to the Rincon del Caido  skarn discovered in 2012 where a previous drill intercept encountered 132 g/t Ag, 3.1% Pb, 1.7% Zn, and 0.075 g/t Au (278 g/t AgEq) over 55.5m. At the 10-20 target, the company has been conducting drilling surface to add mineralization over approximately 300m of strike with a vertical extent of 30-40m. This zone has potential to significantly increase the current 800m by 600m mineralized footprint of the Platosa mine.  At Platosa mine, Excellon is conducting underground drilling to define mineralization ahead of mine development and add mineralized inventory in areas not adequately tested by surface drilling. This underground drilling program follows up on previous drilling of the Pierna and NE-1 mantos and depth extensions of the 623 and NE-1S mantos.
  • GR Silver Mining Ltd., released underground and surface drilling results from its Plomosas project in Sinaloa. Significant mineralization was encountered in hole PLI-20-05 with 2.63 g/t Au, 39 g/t Ag, 0.2% Cu, 0.2% Pb, and 0.1% Zn over 4m, including 8.95 g/t Au, 136 g/t Ag,0.4% Cu,  0.6% Pb, and 0.1% Zn (1,101 g/t AgEq) over 1.0m, and other deeper intersection of 2.77 g/t Au, 25 g/t Ag, 0.2% Cu, 0.2% Pb, and 0.6% Zn over 9.2m, including 19.95 g/t Au, 227 g/t Ag, 1% Cu, 1.3% Pb, and 4.7% Zn (2,507 g/t AgEq) over 0.20m; and hole PLI17-32 with 1.37 g/t Au, 68 g/t Ag, 0.1% Cu, 0.4% Pb, and 0.1% Zn (245 g/t AgEq) over 10.6m. “The underground drilling program is targeting high-grade Ag-Au epithermal mineralization and bulk tonnage-style polymetallic mineralization in the Plomosas Mine Area, with the objective to delineate high margin precious and base metals mineralization for planned resource estimation”.
  • Newmont Corporation reported 2020 mineral reserves and resources for its Peñasquito and Noche Buena mines. Figures are shown in the tables below:

(Resources are reported exclusive of reserves)

  • Orla Mining Ltd., filed updated FS on its Camino Rojo Oxide project in Zacatecas. Highlights include a total ore to leach pad of 67.4M tonnes of 0.73 g/t Au and 14 g/t Ag for a total of 1.59M Oz Au and 31.5M Oz Ag at metallurgical recoveries of 62% and 20% respectively to recover 980K Oz Au and 6.19M Oz Ag. The mine life of Camino Rojo has been estimated in 10.4 years with a throughput rate of 18,000 tonnes per day for an annual production of 94K Oz Au, at a cash and AISC cost of USD $490 and USD $543 per Oz Au respectively. The FS reported a Pre-Tax and NVP (5% discount rate)  of USD $668M, Pre-Tax IRR of 82%, an After-Tax and NVP (5% discount rate) of USD $542M,and an After-Tax IRR of %62%, for a payback time of 1.5 years.
  • Southern Silver Exploration Corp., released drill results from its Cerro Las Minitas project in Durango. The company intersected bonanza grades at La Bocona Chimney in hole 20CLM-131 with 1,072 g/t Ag, 18.8% Pb, and 7.5% Zn (2,040 g/t AgEq or 51.7% ZnEq) over a true width (TW) of 8m, which includes subintervals of 3,180 g/t Ag, 58.8% Pb, and 2.3% Zn over a TW of 0.6m, and 2,340 g/t Ag, 35.9% Pb, and 1.6% Zn over a TW of 0.8m. Additional mineralized intervals intersected further down-hole include 121 g/t Ag, 2.5% Pb, and 2.5% Zn (311 g/t AgEq or 7.9% ZnEq) over a TW of 8.5m, including 413 g/t Ag, 8.7% Pb, and 9.3% Zn (1,103 g/t AgEq or 28% ZnEq) over a TW of 1.6m, including 59 g/t Ag, 0.6 g/t Au, an 3.7% Cu (489 g/t AgEq) over a TW of 0.5m. Additional assays results were also received from the Muralla and the South Skarn targets located 500m away of the Mina La Bocona. Significant drill intercepts were encountered in hole 20CLM-134 with 205 g/t Ag, 0.16 g/t Au, 4% Pb, and 0.9% Zn (377 g/t AgEq or 9.5% ZnEq) over a TW of 4.1m, including 575 g/t Ag, 0.05 g/t Au, 9.9% Pb, and 2.2% Zn (972 g/t AgEq or 24.7% ZnEq) over a TW of 0.6m in the Muralla target; hole 20CLM-126 with 95 g/t Ag, 0.7% Pb, and 1.2% Zn (174 g/t AgEq or 4.4% ZnEq), including 398 g/t Ag, 0.16 g/t Au, 2.7% Pb, and 4% Zn (679 g/t AgEq or 17.2% ZnEq) over a TW of 0.7min the South Target Zone, and hole 20CLM-130 with 327 g/t Ag, 5.6% Pb, and 11.5% Zn (960 g/t AgEq or 24.4% ZnEq) over a TW of 1m in the South Target Zone.

ON DEALS AND CORPORATE ISSUES

  • Carlyle Commodities Corp., announced that it has now met its first-year exploration commitments of its Option Agreement with Riverside Resources to acquire 100% of the Cecilia Gold-Silver project, by having advanced at least CAD $750K for exploration expenditures.
  • Fabled Silver Gold Corp., granted an aggregate of 350K stock options to certain consultants, to acquire one common share of Fabled at an exercise price of $0.22 per common share until September 1, 2021 (Santa Maria project, Chihuahua).
  • Fortuna Silver Mines Inc., announced the resignation of its Director and Chair of the Board, and the appointment of its replacement (San Jose mine, Oaxaca).
  • Gold Resource Corporation announced the appointment of a new member to its Board of Directors (Arista mine, Oaxaca).
  • Gold79 Mines Ltd., announced the appointment of a new member to its Board of Directors and granted him 500K common shares at a price of $0.10 per share and expires on February 12, 2031 (Taviche project, Oaxaca).
  • Orogen Royalties Inc., announced that its current President and Chief Executive Officer has been appointed to the Board of Directors (Ermitaño project, Sonora).
  • Premier Gold Mines Limited announced that two independent adviser firms have recommended that holders of Premier´s common shares and options approve the proposed acquisition of Equinox Gold Corp. (Mercedes mine, Sonora). 
  • Tarachi Gold Corp., signed a purchase agreement with Manto Resources SA de CV to acquire the Magistral del Oro mill and tailings project in Durango.  Magistral project consists of a 1,000 tons per day (TPD) Merrill-Crow tailings reprocessing  plant and tailing disposal facility, and access to an estimated 1.3M tonnes of tailings with a historic average grade of between 2.06 g/t Au and 2.11 g/t Au. In order to acquire the property, Tarachi has to issue 4M of its common shares, grant Manto with a 15% net profits royalty on the estimated 1.3M tonnes of tailings material expected to be processed and reimburse Manto for USD $1,179,500 of cash outlays, and will satisfy certain obligations of Manto by paying a total of USD $1,111,000 plus any Mexican value add tax (IVA) and issuing 1,685,916 common shares within 90 days of closing. Manto will be entitled to the following staged bonus payments: an additional 4M common shares 60 days after the closing date, 4M common shares 180 days after the closing date, 4M of common shares 365 days after the closing date, USD $500K in cash following 6 months of commercial production at Magistral, USD $500K in cash following 12 months of commercial production at Magistral, upon the company earning USD $15M in revenue from Magistral, the company will pay Manto USD $1M. Finally, a finder´s fee of 1M common shares will be issued to Spirit Exploration Corp.
  • Vizsla Resources Corp., announced it will change its name to Vizsla Silver Corp. The name change is expected to be effective on February 9, 2021 (Panuco project, Sinaloa). 

ON SOCIAL RESPONSIBILITY

  • Coanzamex (GoGold Resources Inc.) delivered blankets to the Parral Municipality Shelter. Major of Parral thanked the spirit of solidarity that has characterized the mining company that has operated in Parral, Chihuahua for several years.
  • Fresnillo plc organized literary caravan and delivered 10,000 books to children and adolescents from 23 communities in Caborca, Sonora.  It should be mentioned that Fresnillo plc, in alliance with the IBBY México organization, encourages children’s reading through the “Picando Letras” program, which has been implemented for some time more than 8 years and, to date, approximately more than 2,500 infants and adolescents have participated in the various actions.
  • Industrias Peñoles SAB de CV signed an alliance with the UNAM Foundation so that medical fellows serve the communities near its operating units Durango, State of Mexico, Guerrero and Zacatecas. For more than 10 years, Peñoles has carried out Health Days to the communities near its operations, to provide free medical care to its neighbors. To give continuity to preventive health programs among the population with fewer resources, Peñoles ratified an agreement with the UNAM Foundation whereby eight social service providers of the University will provide medical care to the communities surrounding the Velardeña, Sabinas, Tizapa, and Capela mines.
  • Industrias Peñoles SAB de CV encourages the presence of women in the areas of science, innovation and technological development. Its General Director, Rafael Rebollar, points out that, fortunately, more women are joining the different mining processes, contributing their talent and skills. The Central Laboratory and the Center for Research and Technological Development (CIDT) of Peñoles stand out, with 35 women who carry out functions key to mining and metallurgical processes. Thus, Peñoles reiterates its commitment to society by integrating more women scientists in the industry, through programs that expand their knowledge and allow them to innovate in the processes, which contributes to strengthening the activity mining and make it more sustainable.
  • Santa Elena Mine (First Majestic) in connection with the Sonora A.C. Mining Cluster are carrying out a support program for local merchants in the Banámichi and Río Sonora region. Through a workshop, they seek to provide the necessary tools to promote the economic reactivation of businesses and overcome the barriers of the pandemic using new digital marketing tool to offer its products and services. This training was offered in virtual mode where the last session was completed in person, ending with the delivery of recognitions to the participants.

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 in a low sulphidation epithermal system in a prospect in Durango, Mexico.  Photo by Miguel A Heredia., Mexico.

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

By Jorge Cirett

During the 52nd week of the year (December 21st to December 27th, 2020), at least 28 press releases were announced by companies working in Mexico. To note, six companies posted exploration advances on their properties, six more made announcements related to their shares, three more released resource related news and five more on deals/corporate matters. ON MEXICO ISSUES, the Covid pandemic has not dented mining company’s performance on the BMV. The illegal blockade on Los Filos mine, Guerrero, has been lifted (without great help from the authorities). ON EXPLORATION, in Sonora, Tocvan Ventures informed the RC drilling program has been completed at its Pilar project. In Chihuahua, Radius Gold informed on the status of its Amalia and Plata Verde projects; Mammoth Resources informed it has signed a surface agreement with two ejidos at Tenoriba. In Sinaloa, Mithril Resources released drilling results from Los Reyes, Copalquin. In Nayarit and Jalisco, Candente Gold is studying and permitting the Cocula and El Dorado projects, as well as a processing plant.  ON MINING, Golden Minerals has commenced mining at Rodeo, in Durango. Equinox Gold informed the illegal blockade on the Los Filos projects has been lifted. ON FINANCING, Orla mining is now listed on the NYSE. Consolidated Zinc consolidated its shares on a 15 to 1 basis. Azucar Minerals granted stock options to directors, employees and consultants for $465 K. Reyna Silver issued $299 K in shares to five directors and officers. VanGold Mining and Canuc Resources announced financing rounds for C$7.5 M and $300 K respectively. ON RESOURCES AND DEVELOPMENT, Sonora Gold is assessing to increase the capacity of the planned heap leach operation at Cerro Caliche, in Sonora, to 20,000 tdp. Sierra Metals filed a NI-43-101 report updating the resource base on its Cusi mine, in Chihuahua. Minera Alamos filed on SEDAR the technical report and mineral resource estimate for the Cerro de Oro project, Zacatecas. ON DEALS AND CORPORATE ISSUES, VanGold Mining signed the acquisition of El Cubo mine and El Cubo mine complex in Guanajuato with Endeavour Silver. Almaden Minerals received notification from SEMARNAT that its permit application to develop the Ixtaca project in Puebla has been rejected. Maverix Metals informed on the acquisition of royalties from the Camino Rojo project in Zacatecas and the Cristina project in Chihuahua, as well as the sale of a royalty on the Yecora project in Sonora. Odyssey Marine Exploration informed it has gained more financial support for its litigation against the Mexican government for its refusal to concede a mining permit on its “Exploraciones Oceánicas” offshore phosphate project in Baja California Sur. Elemental Royalties informed it holds a 1% NSR on the Mercedes mine, Sonora, which is owned by Equinox Gold. ON SOCIAL RESPONSIBILITY, Peñoles has been supporting soccer tournaments since 2011.

ON MEXICO ISSUES

  • The Covid pandemic has not dented mining company’s performance on the BMV (Bolsa Mexicana de Valores). At the beginning of the year the four biggest companies in the BMV (Grupo Mexico, Peñoles, Frisco and Autlán) were worth $524,500 million pesos, and now these are valued in $796,500 million pesos (US$39.5 billion), a 51.8% increase. These gains contrast with the expected decline of 25% in exploration, partly die to the pandemic, partly also due to the lack of certitude on government policies, delays or denials of permitting (see note on Almaden) and a greater tax burden.

ON EXPLORATION

  • Radius Gold Inc. informed on the exploration status of its projects in Mexico. At Amalia, in Chihuahua, Radius’s joint venture partner, Pan American Silver Corp. is funding and operating the phase 4 drill campaign, of which 1,838 m in 4 holes have been completed. At Plata Verde, also in Chihuahua, orientation induced polarization and ground magnetic surveys are being conducted. The target mineralized breccias occur under less than 100 m of volcanic cover rocks, and the geophysical surveys are planned to aid drill targeting.
  • Mammoth Resources Corp. announced the second of two ejidos (community held surface land) voted in favor of a two-year surface agreement for exploration at its Tenoriba project in Chihuahua. During “the term of the agreements the Company will be making contributions towards a number of community benefit programs and looks forward to reporting on these contributions. Mammoth will also be providing assistance to a number of the most vulnerable inhabitants of both ejidos”.
  • Mithril Resources Ltd. released good drilling results from Los Reyes target at Los Reyes project in Durango (not to mistake for Prime Mining’s Los Reyes project in Sinaloa).  Highlighted core length intercepts comprise 2.22 m @ 32.35 gpt  Au, 185 gpt Ag; 0.70 m @ 9.3 gpt Au, 125 gpt Ag; 1.20 m @ 2.05 gpt Au, 85 gpt Ag in one hole and 3.0 m @ 2.86 gpt Au, 84 gpt Ag (including 0.6 m @ 9.79 gpt Au, 165 gpt Ag) in other. Drilling is to recommence in early January 2021 at El Refugio target, whereas soil sampling is programmed for El Refugio West, La Soledad West, El Indio and Zaragoza prospects in January-February 2021.
  • Prismo Metals Inc. completed its 2020 drilling campaign at Palos Verdes, Sinaloa. A total of 436.8 m were drilled in four holes, and a fifth hole is to be completed in January 2021. The holes intercepted wide zones of discrete quartz veins in andesite with quartz and stockwork quartz veining, local pyrite and sphalerite. Results pending.
  • Tocvan Ventures Corp. informed on the completion of its campaign of reverse circulation drilling at its Pilar project, Sonora. A total of 1,505 m were drilled in nine holes, with results expected in early 2021.
  • Candente Gold Corp. announced that technical experts have been engaged for permitting and deposit modelling for the El Dorado (Nayarit) and Cocula (Jalisco) projects and for permitting of the San Dieguito de Arriba (Nayarit) plant.

ON MINING

  • Golden Minerals Corp. announced it has begun mining at its Rodeo property, Durango.  Material over 3.0 gpt Au is to be transported in January to Golden’s Velardeña 200 tpd mill. A second ball mill is to be installed to increase the processing capacity to 450 tpd.
  • Equinox Gold Corp. reported that “the blockade by members of the Carrizalillo community at the Company’s Los Filos Mine in Mexico has been removed and access to the mine has been restored. Representatives from Los Filos continue to meet regularly with community leaders to reach consensus on the remaining items related to benefits provided under the Carrizalillo social collaboration agreement”.

ON FINANCING

  • Orla Mining Ltd. is now listed on the New York Stock Exchange. Orla’s addition to the exchange is classified as a “dual listing without capital raise”.  (Camino Rojo, Zacatecas).
  • Consolidated Zinc Ltd. informed the 1 to 15 consolidation of the company securities is now complete (Plomosas, Chihuahua).
  • Azucar Minerals Ltd. has granted stock options to certain directors, employees, and consultants of the company to purchase 465 K common shares in the capital of Azucar (El Cobre, Veracruz).
  • VanGold Mining Corp. announced a part and parcel non-brokered private placement financing for gross proceeds of C$7.5 M (El Cubo, Guanajuato).
  • Canuc Resources Corp. announced the closing of a non-brokered private placement for gross proceeds of $300 K (San Javier Silver-Gold, Sonora).
  • Reyna Silver Corp. issued $299 K of its common shares toward partial annual compensation to five directors and officers of the Company (Guigui, Chihuahua).

ON RESOURCES AND DEVELOPMENT

  • Sonora Gold Corp.  informed on the expansion of several mineralized zones at its Cerro Caliche property in Sonora. Based on these results Sonoro is assessing the viability of a heap leach mining operation with an increased capacity form 8,000 to 20,000 tonnes per day. Highlighted core length intervals comprise 11.7 m @ 0.92 gpt Au; 11.25 m @ 1.08 gpt Au; 8.45 m @ 1.4 gpt Au; 5.7 m @ 1.25 gpt Au in the El Colorado zone, and 13.72 m @ 0.47 gpt Au; 15.24 m @ 0.40 gpt Au; 21.33 m @ 0.47 gpt Au; 25.91 m @ 0.42 gpt Au at Los Japoneses.
  • Sierra Metals Inc. filed a NI 43-101 report updating the resource base on its Cusi mine, in Chihuahua. Measured and indicated resources now consist of 5.36 M tonnes @ 182 gpt Ag, 0.12 gpt Au, 0.49% Pb, 0.58% Zn (215 gpt AgEq), and inferred resources of 4.89 M tonnes @ 146 gpt Ag, 0.18 gpt Au, 0.43% Pb, 0.69% Zn (183 gpt AgEq). (Note.- this should amount to close to 55 M Oz Ag, not counting other metals credits).
  • Minera Alamos Inc. filed on SEDAR the technical report and mineral resource estimate for the Cerro de Oro project, Zacatecas. The inferred mineral resource on oxide ore is 48 M tonnes @ 0.41 gpt Au, containing 630 K Oz Au.

ON DEALS AND CORPORATE ISSUES

  • VanGold Mining Inc. signed a binding letter agreement with Endeavour Silver Corp. to acquire the El Cubo mill and mill complex, in Guanajuato, 8 km from its El Pinguico property. El Cubo complex includes two underground operating mines (in care and maintenance) and a 1,500 tpd flotation plant.  VanGold intends to restart the mill at approximately 750 tpd “using mineralized material from its surface and underground stockpiles at its El Pinguico project as a significant portion of its estimated throughput for the first 36 months of operation”. El Cubo has measured, indicated and inferred resources of 2.4 M Oz Ag and 28.2 K Oz Au.
  • Almaden Minerals Ltd. Has received notification from the Mexican federal permitting authority, Secretaría de Medio Ambiente y Recursos Naturales (SEMARNAT) that the company’s initial environmental permit application (MIA) in respect of the Ixtaca project has not received approval. Almaden originally submitted the MIA in early 2019. The SEMARNAT resolution cites insufficient information regarding the impacts of open pit mining on the environment, local and regional area. “The Company is continuing its review of SEMARNAT’s response to the MIA and is evaluating its alternatives which include the re-submittal of a revised MIA, continuing dialogue, and legal options”.
  • Maverix Metals Inc. informed on some royalties included in the Newmont Corporation royalty portfolio acquired in October 29, 2020. Orla Mining Ltd. elected not to exercise its ROFR (Right Of First Refusal) on the 2.0% net smelter return royalty of oxide and transitional ore production from the Camino Rojo project located in Zacatecas; Orla expects the first gold pour in the second half of 2021. Criscora, S.A. de C.V., a wholly owned subsidiary of TCP1 Corporation, will acquire the 1.0% NSR royalty on the Yecora project located in Sonora, for a cash payment of $1.5 M, which Maverix will receive. The ROFR on the Cristina project located in Chihuahua, was not exercised and Maverix will acquire the 2.0% NSR royalty.
  • Odyssey Marine Exploration Inc. has secured up to an additional $10 M to support its pending North American Free Trade Agreement (NAFTA) claim against Mexico. The NAFTA claim relates to the “unlawful denial of the environmental permit for subsidiary Exploraciones Oceanicas’ (ExO’s) offshore phosphate project” in Baja California Sur.  The project, said to be one of the largest and highest quality phosphate sands deposits in the world, is subject to a $2.36 billion claim against Mexico under NAFTA.
  • Elemental Royalties Corp. disclosed it owns a 1% Net Smelter Returns (“NSR”) royalty on Premier’s Mercedes Mine, a key asset in the Premier portfolio, which becomes payable to Elemental from July 28, 2022 following a time hurdle. Premier Gold Mines Ltd. was recently acquired by Equinox Gold Corp.

ON SOCIAL RESPONSIBILITY

  • Peñoles has been supporting soccer tournaments since 2011 with the installation of the “Copa Santos Peñoles”. The last edition of the tournament (2019) counted with the participation of 288 teams.

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 from a project in San Luis Potosí. Picture by Jorge Cirett.

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

Rich-Mn jasperoid

By Miguel A Heredia

During the forty one week of the year (October 5th to October 11th, 2020), at least 27 press releases were announced by companies working in Mexico and 10 news published by the media, with seven informing on exploration results, seven announcing financial rounds, seven commenting on Mexican issues, six disclosing deals and corporate issues, six communicating production and financial results, three discussing social issues, and one reporting on resources and development of their mine operations  ON MEXICO ISSUES, The Mining Chamber of Mexico (CAMIMEX) and other organizations in the mining sector urged the federal government to maintain the operations of the Mining Fund, which has counted, until now, with an amount of MXP $22,000M (about $1B). The fate of the Fund for the Development of Mining Production Zones (Mining Fund), which had drastically changed its distribution in the last two years, is now more uncertain. Alvaro Burgos Barrera, the State Secretary of Economic Development of Guerrero, stated that Mining fund distributed MXP $300M for urban infrastructure in seven municipalities of the state, but now this support won´t arrive anymore at the entity after the disappearance of such program, at the initiative of the current federal government. Mining companies operating in Mexico demanded to guarantee the resources of the Mining Fund to the mining communities. The mining sector of Zimapan, Hidalgo spoke against the extinction of the Mining Fund. Mexico loses shine to attract mining investment. President Andrés Manuel López Obrador plans to take a decision on how to manage Mexico’s lithium resources soon.  ON EXPLORATION, In Sonora, Riverside reported assay results from 55 channel samples and 181 soil samples taken at its Cuarentas property and announced it is preparing a drill program. In Chihuahua, Kootenay released drilling results from its Columba project and announced the discovery of a broad area of Ag mineralization.  In Sinaloa, Brigadier reported exploration results from the El Placer vein system within its Picachos project, Prismo received environmental permit from SEMARNAT to drill 5 holes at its Palos Verdes project, and Vizsla reported drill results from its Panuco property.  In Zacatecas, Advance Gold reported drill results from two holes collared at its Tabasquena project. In Guanajuato, VanGold released assays from underground channel sampling carried out at its Pinguico property.  ON MINING, Aura reported preliminary Q3, 2020 production results from its Aranzazu mine in Zacatecas. GoGold reported Q3, 2020 production activities from its Parral Tailings project in Chihuahua. Endeavour announced Q3, 2020 production results from their Mexican operations. Great Panther released production results from their Topia mine in Durango and Guanajuato Mine Complex in Guanajuato for the period Q3, 2020. Hecla announced production results from its San Sebastian mine in Durango for the period Q3, 2020.Torex reported Q3, 2020 production results from its El Limon-Guajes mine complex in Guerrero. ON FINANCING, Almadex announced a proposed non-brokered private placement for gross proceeds of approximately $1.35M (El Chato project, Puebla). Barksdale granted stock options to its directors, employees and consultants (San Javier project, Sonora). Comet raised $1M under its share purchase plane with approximately 180 shareholders participating (Santa Teresa project, Baja California). Golden Tag announced that it has initiated the process to have its common shares trading on the OTCQB Venture Market and the repricing of 9.9M incentive stock options. Inomin closed a non-brokered private placement for gross proceeds of $400,500 (La Gitana project, Oaxaca). Santacruzclosed the first tranche of its previously announced non-brokered private placement for gross proceeds of $7,629,279.02. Mexus announced that it has completed a 1 for 20 reverse split of its stock (Santa Elena mine, Sonora).   ON RESOURCES AND DEVELOPMENT, Mexus announced that its ball mill gravity gold recovery system is now operational, allowing the company to run high grade material from the Julio quartz vein at its Santa Elena mine located in Caborca, Sonora.    ON DEALS AND CORPORATE ISSUES, Avino announced that it achieved a successful resolution to the strike at its Avino mine in Durango. Gold Resource announced its intent to spin-off in two separate companies its Nevada and Oaxaca Mining Unit (Arista Mine, Oaxaca).  Gray Rock announced the change of its name to Silver Wolf Exploration Ltd (Ana Maria project, Durango). Impact Silver executed a letter of intent to option the Nuevo Taxco project in Guerrero to Road Oak Mining Corp. Osisko announced spin-out of mining assets and creation of a premier North American Gold Development Company (San Antonio project, Sonora).  Silver Dollar reported that it is evaluating to transfer its Canadian exploration projects to a new subsidiary with the aim of position the company to be focus on the exploration and development of its advanced stage la Joya property in Durango. ON SOCIAL RESPONSIBILITY, Minera Cuzcatlán (Fortuna Silver) fulfilled an agreement with the Oaxaca community to extend the hours of attention to patients at the Health Center of the Municipal Headquarters.  In the Municipality of Guadalupe y Calvo, Chihuahua, 11 school domes were inaugurated, of which 6 were made with resources from the Mining Fund and five in coordination with the Municipality and the State. Industrias Peñoles SAB de CV faces firmly the new challenges posed by the pandemic.

ON MEXICO ISSUES

  • The Mining Chamber of Mexico (CAMIMEX) and other organizations in the sector urged the federal government to maintain the operations of the Mining Fund, which has counted, until now, with an amount of MXP $22,000M (about $1.04B),  with an impact on 690 communities. The Mining Fund was created with the objective of benefiting the populations where the resources were generated.
  • The fate of the Fund for the Development of Mining Production Zones (Mining Fund), which had drastically changed its distribution in the last two years, is now more uncertain. The resources collected between 2014 and 2018 have been used for the installation and maintenance of public lighting, sanitary landfills, water treatment plants, drainage works. Public jets and environmental projects such as reforestation, etc. In 2019, it was decreed that these resources be distributed in a general way in the country through the Ministry of Public Education (SEP), which reduces the possibility of continuing with the development of mining communities. It goes against the principles by which it was generated: to distribute the Mining Fund among mining states and municipalities to promote high-impact infrastructure works.
  • Alvaro Burgos Barrera, the State Secretary of Economic Development of Guerrero, stated that Mining fund distributed MXP $300M for urban infrastructure in seven municipalities, but now this support won´t arrive anymore at the entity after the disappearance of such program, at the initiative of the current federal government.
  • Mining companies operating in Mexico demanded to guarantee the resources of the Mining Fund to the mining communities claiming that is was created with the spirit of benefiting the populations where the resources are generated. The Mexican Mining Chamber (CAMIMEX) asked the federal government to guarantee the application of resources from the Fund for the Development of Mining Production Zones for the benefit of the more than 690 mining communities in the country located in 212 municipalities in 24 states of the Mexican Republic. That is the commitment 27 made by President Andrés Manuel López Obrador during his protest, which states: “The tax charged to companies for the extraction of the mineral will be transferred to the mining communities.”
  • The mining sector of Zimapan, Hidalgo spoke against the extinction of the Mining Fund. The federal initiative to disappear 109 trusts with an economic sum of almost MXP $68.5 would cause Hidalgo to stop receiving part of those funds, in different lines, including the one focused on Science and Technology as well as the extractive mineral industry. One of the first impacts would be the cancellation of economic resources for the urban infrastructure of the municipality.
  • Mexico loses shine to attract mining investment. After disagreements between the federal government and the mining industry, last year Mexico fell nine places in investment attractiveness for the mining industry, going from 29th place in 2018 to 38th in 2019. The federal government has been clear that no mining concessions will be granted during this administration. President Andrés Manuel López Obrador has declared that 40 percent of the national territory was concessioned and it is about stopping them “because with what has been granted, it is enough for millions of years.” Karen Flores, general director of the Mining Chamber of Mexico (CAMIMEX), refuted this statement and points out that 24 thousand 66 mining concession titles are in force in Mexico, representing 16.83 million hectares, equivalent to 8.59 percent of the national territory, for which is a myth to affirm that practically the entire national territory is concessioned to mining. At least 84 projects were postponed in 2019 due to different factors that affect their competitiveness, such as the price of metals, a higher tax burden, delays or rejections of permits, and uncertainty regarding possible changes in existing regulations, as well as in mining public policies, according to CAMIMEX.
  • President Andrés Manuel López Obrador plans to take a decision on how to manage Mexico’s lithium resources soon. As is known, the government considers nationalizing the metal for batteries, whose demand is expected to increase in the coming decades to meet the growing manufacture of electric vehicles. What will be analyzed is to see if the country will opt for a total nationalization or to count with stricter controls on concessions, since all minerals belong to the State under Mexican law. While Mexico is not yet a lithium-producing country, this is expected to change in 2023 when project production begins in Sonora. Sonora is home to one of the largest lithium deposits in the world.

ON EXPLORATION

  • Riverside Resources Inc., reported assay results from 55 channel samples and 181 soil samples taken at its Cuarentas property in Sonora and announced it is preparing a drill program to test some outlined targets. Highlights of the channel sampling include 9.1 g/t Au over 3.4m, including 32.9 g/t Au over 0.8m; 21.7 g/t Au over 1.6m; and 6.3 g/t Au over 1.2m. The soil program was done using a grid of 50 meter spaced lines and 25 meter spacing between samples. The soil sampling has defined a continuous 550 m long high-grade gold-in-soil anomaly which merges the Santa Rosalia and Santa Rosalia Sur as Centro de Rosalia and cumulates more than 1.7 km with higher-grade gold mineralization. Highlights include results of up to 0.9 g/t Au.
  • Kootenay Silver Inc., released drilling results from the J-Z zone within its Columba project in Chihuahua, and announced the discovery of a broad area of at least 320m long, 460m deep, and an average width of 60m with high grade Ag mineralization in hydrothermal breccias.  The mineralized system is open laterally on strike and at depth. Significant drill intercepts were encountered in hole CDH-20-061 with 43 g/t Ag over 30.85m, including 164 g/t Ag over 1m and 63 g/t Ag over 8m, as well as 54 g/t Ag over 7.85m, including 144 g/t Ag over 2m; hole CDH-20-062 with 93 g/t Ag over 11.6m including 115 g/t Ag over 8.3m and including 161 g/t Ag over 1m; hole CDH-20-063 with 91 g/t Ag over 9m, including 187 g/t Ag over 2.49m, including 762 g/t Ag over 0.49m; hole CDH-20-065 with 106 g/t Ag over 7m; hole 69 g/t Ag over 25.5m, including 154 g/t Ag over 9m, including 773 hg/t Ag over 1.5m; hole CDH-20-030 with 76 g/t Ag over 8.9m, including 173 g/t Ag over 3.3m, as well as 200 g/t Ag over 25.85m, including 415 g/t Ag over 11.15m, including 721 g(t Ag over 4.07m, and including 982 g/t Ag over 1.9m; and hole CDH-20-060 with 132 g/t Ag over 64m, including 226 g/t Ag over 9m, including 1,025 g/t Ag over  1m, as well as 229 g/t Ag over 22m, including 608 g/t Ag over 5m, including 1,160 g/t Ag over 1m.  
  • Brigadier Gold Limited, reported exploration results from the El Placer vein system within its Picachos project in Sinaloa. This vein system has been traced now for at least 4km along strike and comprises multiple parallel veins over a trend width ranging from 60 to 160 metres. Sample assay highlights include 7.4 g/t Au over 3.2m; 12.8 g/t Au, 54 g/t Ag, 0.1% Cu, 7.7% Pb, and 6.73% Zn over 0.5m; and 101 g/t Ag, 0.3% Cu, 2% Pb, and 11.6% Zn over 1m.
  • Prismo Metals Inc., received environmental permit from SEMARNAT for its Palos Verdes project in Sinaloa. “The Palos Verdes drilling program will consist of about five holes, with the longest hole planned at 150-175m, designed to test the vein on strike and below the high-grade intercepts from a previous drill program carried out in May 2018. The best intercept from that program was 8.42 g/t Au and 2,336 g/t Ag, over an estimated 0.8m true width”.
  • Vizsla Resources Corp., reported results from its current drill program at its Panuco property in Sinaloa. Significant drill intersects were encountered at hole NP-20-25 with 2.02 g/t Au, 255 g/t Ag, 0.3% Pb, and 0.6% Zn (449 g/t AgEq) over a true width (TW) of 15.3m; and hole NP-20-27 with 8.7 g/t Au, 870 g/t Ag, 0.8% Pb, and 2% Zn (1,696 g/t AgEq) over a TW of 2.58m. 
  • Advance Gold Corp., reported drill results from two holes collared at its Tabasquena project in Zacatecas, to test a 3,500m long continuous high chargeability Induced Polarization (IP) anomaly. Hole AGT-15 intercepted 122 g/t over a narrow interval of 0.33m, 198 g/t Ag over 2.23m, and 664 g/t Ag over 2.15m; and hole AGT-16 intercepted 0.7% Pb and 2.6% Zn over 6.5m, including 2.27% Pb and 5.45% Zn over 1.3m. A new geophysical survey will be underway within days to determine east to west dimensions of the geophysical anomaly at the northern end.
  • VanGold Mining Corp., released assays from channel sampling carried out at its Pinguico property in Guanajuato.  “El Pinguico vein system between the 4th and 6th levels (from approximately 130m to 185m below surface), covering an area approximately 55 meters in height, by 60 meters in width and where the stopped out area, plus remaining vein material, ranges from 1.5 meters to 5.5 meters wide.  This exposure is adjacent to the El Pinguico shaft where crews continue to remove material blocking access to the #7 adit level”. Significant assays are 1.72 g/t Au and 630 g/t Ag (9.59 g/t AuEq or 767 g/t AgEq) over 1.6m; 4 g/t Au and 404 g/t Ag (9.05 g/t AuEq or 724 g/t AgEq) over 1.3m; and 4.59 g/t Au and 4566 g/t Ag (10.41 g/t AuEq or 833 g/t AgEq) over 1.2m. A weighted average grade of the underground sampling was 2.5 g/t Au and 363 g/t Ag (6.71 g/t AuEq or 537 g/t AgEq). Additionally, VanGold announced that a drill program will commence in the third week of November. It will consist of 14 holes for a total of 2,230m of HQ and/or NQ drilling.

ON MINING

  • Aura Minerals Inc., reported preliminary Q3, 2020 production results from its Aranzazu mine in Zacatecas. It produced 5,881 Oz Au, 101, 379 Oz Ag, and 6,921 Lb Cu (17,909 Oz AuEq).
  • GoGold Resources Inc., reported Q3, 2020 production activities from its Parral Tailings project in Chihuahua. The company produced 300,740 Oz Ag, 3,414 Oz Au, and 282.2K Lb Cu (a total of 605,287 Oz AgEq).
  • Endeavour Silver Corp., announced Q3, 2020 production results from their Mexican mine operations: Guanacevi in Durango, Bolañitos in Guanajuato, and El Compas in Zacatecas. Figures are summarized in the below table:
  • Great Panther Mining Limited, released production results from their Topia mine in Durango and Guanajuato Mine Complex in Guanajuato for the period Q3, 2020. At Topia, Durango, the company processed 20,292 tonnes of 0.85 g/t Au and 353 g/t Ag, at metallurgical recoveries of 55.5% and 92.5% respectively to produce 308 Oz Au, 213,320 Oz Ag, 1M Lb Pb, and 1.25M Lb Zn (383,897 Oz AgEq). At Guanajuato Mine Complex, Great Panther processed 45,101 tonnes of 1.59 g/t Au, and 131 g/t Ag at metallurgical recoveries of 83.4% and 85.5% respectively to produce 1,919 Oz Au and 161,927 Oz Ag (334,675 Oz AgEq).
  • Hecla Mining Company, announced production results from its San Sebastian mine in Durango for the period Q3, 2020.The company produced 1,931 Oz Au and 0.3M Oz Ag, for a total production of 6K Oz Au and 0.8M Oz Ag during the first 9 months of 2020.
  • Torex Gold Resources Inc., reported Q3, 2020 production results from its El Limon-Guajes mine complex in Guerrero. The company produced 131,790 Oz Au and sold 133,030 Oz Au at an average realized price of $1,880 per Oz. Torex has produced 299,830 Oz Au and sold 304,230 Oz Au  through the first nine months of 2020, at an average realized gold price of $1,735 per Oz.

ON FINANCING

  • Almadex Minerals Ltd., announced a proposed non-brokered private placement for gross proceeds of approximately $1.35M. The company intends to use the proceeds for general corporate purposes (El Chato project, Puebla).
  • Barksdale Resources Corp., granted stock options to its directors, employees and consultants to purchase up to 925K common shares at an exercise price of $0.50 per share  (San Javier project, Sonora).
  • Comet Resources Limited, raised $1M under its share purchase plane with approximately 180 shareholders participating. These funds are in addition to the $2M raised under the previous placement completed in September 2020. Part of the proceeds raised will be used to fund activities at its Santa Teresa project in Baja California.
  • Golden Tag Resources Ltd., announced that it has initiated the process to have its common shares trading on the OTCQB Venture Market and the repricing of 9.9M incentive stock options from $0.325 to $0.33 (San Diego property, Durango).
  • Inomin Mines Ltd., closed a non-brokered private placement for gross proceeds of $400,500. The company will use the gross proceeds to establish operations in Mexico to move forward with the La Gitana project in Oaxaca.  
  • Santacruz Silver Mining Ltd., closed the first tranche of its previously announced non-brokered private placement for gross proceeds of $7,629,279.02. Gross proceeds will be used to purchase underground equipment for its Zimapan property in Hidalgo and for general working capital and corporate purposes. Santacruz also announced that due to the strong demand it has further increased the size of the private placement to up to $10M. Closing of remain tranche(s) of the private placement is expected to occur on or before October 14, 2020.
  • Mexus Gold US, announced that it has completed a 1 for 20 reverse split of its stock. The stock will began trading at its new price allowing the stock price to move up and accurately to reflect the value of the company. An increased stock price will also give Mexus the opportunity to uplist the stock once all parameters for doing so have been met. (Santa Elena mine, Sonora).   

ON RESOURCES AND DEVELOPMENT

  • Mexus Gold US recently announced the discovery of a significant amount of gold trapped in silver chloride at the bottom of the heap leach pad located at its Santa Elena mine. As stated in its recent press release the company noted that its ball mill gravity recovery system would be used to recover this gold, allowing the company to run high grade material from the Julio quartz vein at its Santa Elena mine located in Caborca, Sonora.

ON DEALS AND CORPORATE ISSUES

  • Avino Silver & Gold Mines Ltd., announced that it reached an agreement with the Mexican Mining Union and the strike at the mine has ended (Avino mine, Durango).
  • Gold Resource Corporation, announced its intent to spin-off in two separate companies its Nevada and Oaxaca Mining Unit. The company wants to spin-off its Nevada Mining Unit to shareholders as a separate publicly-traded company. The transaction is targeted to be completed by year-end 2020 or the first quarter of 2021.  With this transaction, the Oaxaca Mining Unit would be focused on expanding and discovering new vein systems since it has only drilled 2% of its 560 square kilometer land package in Oaxaca (Arista Mine, Oaxaca).
  • Gray Rock Resources Ltd., announced the change of its name to Silver Wolf Exploration Ltd., effective October 8, 2020. The company shares will commence trading on the TSX Venture Exchange under the new trading symbol “SWLF” (Ana Maria project, Durango).  
  • Impact Silver Corp., executed a letter of intent to option the Nuevo Taxco project in Guerrero to Road Oak Mining Corp. , under which Red Oak will carry exploration of a portion of Impact´s very large land position in Mexico. The Nuevo Taxco project comprises 1,100 hectares and is located on the NW extension of the famous Taxco Silver Mining District, and the area is prospective for high grade Ag-Au mineralization. Red Oak may earn a  100% interest by making staged payments and incurring exploration expenditures over a 3-year period as follow:  a) $50K in cash and 500K Red Oak common shares upon TSXV approval of the transaction and closing of their financing, b) $200K in exploration expenditures on or before September 30, 2021, c) $100K in cash, 1M common shares, and $400K in exploration expenditures before September, 2022, and d) $150K in cash, 2M common shares, and $800K in exploration expenditures on or before September, 2023. IN addition, Impact will retain a 1% NSR that Red Oak may buy back for CAD $1M.
  • Osisko Gold Royalties Ltd., announced spin-out of mining assets and creation of a premier North American Gold Development company (San Antonio project, Sonora). Osisko and Barolo Ventures Corp., entered into a binding letter agreement outlining the terms upon which Osisko Royalties will transfer certain mining properties (or securities of the entities that directly or indirectly own such mining properties), including the San Antonio Gold property in Sonora and Guerrero properties in Guerrero state as well as  a portfolio of marketable mining properties in Canada valued at approximately CDN $116M, to Barolo in exchange for common shares of Barolo which will result in a “Reverse Take-Over” of Barolo under the policies of the TSX Venture Exchange.
  • Silver Dollar Resources Inc., reported that it is evaluating to transfer its Canadian exploration projects to a new subsidiary that would be spun out to Silver Dollar shareholders. It allows Silver Dollar to be focused on the exploration and development of its advanced stage la Joya property in Durango.

ON SOCIAL RESPONSIBILITY

  • Minera Cuzcatlán (Fortuna Silver Mines Inc.), fulfilled an agreement with the Oaxaca community to extend the hours of attention to patients at the Health Center of the Municipal Headquarters, benefiting the inhabitants of the municipality, agencies and ranches. In addition, two specialized spaces were enabled for general medicine and emergency care, and the two municipal ambulances were maintained, one of them equipped for the transfer of patients with COVID-19 symptoms. It is worth mentioning that the agreement will be in force until the health emergency due to COVID-19 is lifted by the Federal Government through the General Health Council.
  • In the Municipality of Guadalupe y Calvo, Chihuahua, 11 school domes were inaugurated, of which 6 were made with resources from the Mining Fund and five in coordination with the Municipality and the State.
  • Industrias Peñoles SAB de CV faces firmly the new challenges posed by the pandemic and continues to prepare to create the health conditions required to protect its thousands of workers, highlighting that this has undoubtedly been an extremely complicated year. In addition to the fact that during this 2020 none of its workers will be left without employment. Peñoles today applies the highest standards of health protection to continue operating as a company and also as an industry despite all the circumstances.

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 rich-Mn jasperoid from an epithermal system in a prospect in Chihuahua, Mexico.  Photo by Miguel A Heredia.

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

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By Jorge Cirett

During the 28th week of the year (July 6th to July 12th, 2020), at least 31 press releases were announced by companies working in Mexico. Notably, six of those were exploration updates and six more related to financing. ON MEXICO ISSUES, a 12,000 years old ochre mining operation (now submerged) was discovered in the Yucatan peninsula. Avino Silver is the new victim of an illegal blockade. Mining in Mexico has extensive benefits to isolated communities, workers and the government. The Mining Fund rules have been changed, granting more political freedom on its assignment. Mines in the country prepare for production recovery in the second half of 2020.  ON EXPLORATION, in Sonora, Tarachi Gold is mapping and sampling on its Tarachi concessions, announced the finding of a porphyry copper system. In Sinaloa, Brigadier Gold is now exploring the Picachos property; Vizsla Resources released high-grade results on its Panuco property. In Durango, Canasil is now drilling the Nora project.  ON MINING, Argonaut Gold, Endeavour Silver, Great Panther, and Hecla released production results for the Q2, 2020. The figures presented reveal the extent of the Coronavirus emergency lockdown effects.  ON FINANCING, Aura Resources is aiming to raise up to $1 M. Prospero Silver consolidated its shares on a 10 to 1 basis. Mithril Resources intends to raise A$3.5 M. Solaris Resources is to trade in the TSX Venture Exchange. Advance Gold raised $301 K. Vizsla Resources announced a private placement for C$25 M. ON RESOURCES AND DEVELOPMENT, Mexican Gold commenced a 10,000 m drill program at its Las Minas project in Veracruz. GR Silver released more historic drilling results from Plomosas, Sinaloa. GoGold Resources released drilling results from eight more holes at Los Ricos Sur, Jalisco. Golden Minerals is drilling the Rodeo project in Durango. Magna Gold is producing gold from leaching heaps as it prepares to restart mining at the San Francisco mine in Sonora. ON DEALS AND CORPORATE ISSUES, Aura Resources is to change its name to Gold79 Mines. Brigadier Gold entered into a LOI with Minera Camargo to option 100% of the Picachos property in Sinaloa. First Mexican Gold changed its name to QcX Gold. Candente Gold informed the due diligence work on Magellan Acquisition assets in Nayarit has been conducted, results pending. Silver Tiger Metals is sampling historic workings on veins north of the El Tigre mine in Sonora. ON SOCIAL RESPONSIBILITY. Gold Resources, Torex Gold, Fortuna Silver, Fresnillo PLC and Peñoles informed on support activities and investments related to the Coronavirus emergency, community work supplies and/or about the “Day of the Tree”.

ON MEXICO ISSUES

  • Researchers discovered 12,000 years old submerged ochre mines in the Yucatan peninsula. Multiple artifacts and evidences of mining were found in this cave system that was above sea level up to 8,000 years ago.
  • Avino Silver & Gold Mines reports that members from the Mexican mining union have blocked the entrance to the Avino Mine in Durango. The group (that illegally blockades) includes the company’s unionized workers. As a result of the strike at the site, mining and mill processing operations have been halted.
  • Mining in Mexico supports 696 communities in 21 States, and often is the only option to take basic services and jobs to regions far away. The mining sector provides 2.6 percent of the GDP and accounts for 8.2 percent of the industrial output. Salaries at US$779/month (17,521 pesos/month) are 39 percent higher than the national average of $513/month (11,549 pesos/month). There are 379 thousand direct jobs and 2.3 M indirect jobs generated by the industry. Mining paid US$1.91 billion ($43,095 million pesos) in mining concession fees in 2019, and US$7,755 billion ($174,500 million pesos) in taxes in the 2016-2019 period.
  • The Mining Fund rules have been changed. The changes in the rules were published in the Diario Oficial de La Federación (Official Gazette), with the aim of speeding the process to deliver benefits to the communities, according to the document. The changes (which were opposed by the mining community because of the increased political control of the funds) include the elimination of necessary cost-benefit assessment of the projects deemed for social infrastructure, discarding also the obligation to establish coordination agreements in the request and delivery of said funds. The Mining Fund distributes part of the 7.0% of royalties and the 0.5% special tax on precious metal exploitation.
  • Mines in all the country prepare for a production recovery in the second half of 2020, as all companies have scrambled to operate under health safeguards brought by the Coronavirus pandemic.

ON EXPLORATION

  • Advance Gold Corp. provided an update on exploration of its Tabasqueña property in Zacatecas. The exploration that started trying to define epithermal vein mineralization has modified its target to a volcanogenic massive sulfide (VMS). A large chargeability anomaly more than 3 km long was defined in a geophysical survey, and subsequent drilling has intersected disseminated sulfides. Drilling of the disseminated sulfides has returned up to 39 ppb Au, 7 ppm Ag, 351 ppm Cu, 54 ppm Pb, 295 ppm Zn.
  • Brigadier Gold Ltd. entered into a binding letter of intent with Minera Camargo S.A. de C.V. for an option to acquire 100% interest in the Picachos property in Sinaloa. The area has more than 160 known historic underground workings, a recently identified porphyry copper prospect and drill permits in place. “The largest vein system trends northeasterly for seven kilometers along a major fault zone, and host the past-producing San Agustin underground mine”. Regional stream sediment results from a government survey shows several highly anomalous basins with up to 2.6 ppm Au, 299 ppm Cu, 13.9 ppm Mo, 639 ppm Pb and 1,716 ppm Zn.
  • Vizsla Resources Inc. released additional drilling results from the Napoleon vein corridor at the Panuco project in Sinaloa. Highlighted core length drill intercepts comprise 6.0 m @ 66.8 gpt Au, 1,808 gpt Ag (including 3.7 m @ 107.8 gpt Au, 2,889 gpt Ag); 1.78 m @ 2.49 gpt Au, 59 gpt Ag; 3.5 m @ 1.11 gpt Au, 57 gpt Ag; 10.65 m @ 1.34 gpt Au, 134 gpt Ag. The corridor “ hosts two main quartz veins that are separated by some 10 to 20 metres and appears to dip very steeply to sub-vertical. So far it has been mapped along strike for over 2,000 m. Between the two main veins are a series of smaller splay veins with variable orientations, that are related to dilation along the structure under strike slip movement …. Vizsla has an option to acquire 100% of the newly-consolidated 9,386.5 Ha Panuco district in southern Sinaloa, Mexico, near the city of Mazatlán. The option allows for the acquisition of over 75 km of total vein extent, a 500 tpd mill, 35 km of underground mines, tailings facilities, roads, power and permits”.
  • Tarachi Gold Corp. updated on field work activities on the concessions known as the Tarachi project, in Sonora. Detailed mapping and sampling on the La Dura and Virginia areas of the southern Jabali concession is near completion. Preliminary field work on the northern concessions of San Javier, Pretoria and Chivitas was also conducted, finding porphyry copper mineralization that is currently being defined. Environmental applications for drilling are ready for submission.
  • Canasil Resources Inc. started the drill program to test the Candy vein at its Nora project in Durango. Mineralization at Nora is hosted within structurally-controlled epithermal veins, of which the Candy vein is to be tested in a 500 m stretch.

ON MINING

  • Argonaut Gold Inc. announced second quarter production of 31,531 Oz AuEq from its Mexican operations. For the full-year 2020 the company expects to produce 45 K – 50 K Oz AuEq at El Castillo, 62 K – 68 K Oz AuEq at San Agustín (both in Durango) and 53 K – 55 K Oz AuEq at La Colorada (Sonora), for a total production of 160 K – 173 K Oz AuEq in Mexico.
  • Endeavour Silver Corp. presented Q2 2010 production figures, which were down 42% because of the Coronavirus pandemic lockdown. On the bright side, significant true width high-grade intercepts were made near current mine workings, like 1.5 m @ 24.3 gpt Au, 3,217 gpt Ag in Bolañitos, Guanajuato, and 10.0 m @3.25 gpt Au, 1,410 gpt Ag at Guanaceví, Durango.Endeavour Q2 2020 Production1
  • Great Panther Mining Ltd. released second quarter 2020 production results, with figures from its Mexican operations. At Topia, Durango, 7,781 tonnes were processed @ 352 gpt Ag, 0.87 gpt Au, recovering 92.5% Ag, 54.0% Au to produce 81.4 K Oz Ag, 118 Oz Au, 163 tonnes Pb, 223 tonnes Zn. At the Guanajuato mine complex, Guanajuato, 16,755 tonnes were processed @ 133 gpt Ag, 1.80 gpt Au, recovering 85.4% Ag, 84.7% Au, to produce 61 K Oz Ag, 819 Oz Au.
  • Hecla Mining Co. released preliminary production results for the second quarter 2020. At San Sebastian, in Durango, 2 M Oz Ag, 1,331 Oz Au were produced. Mining of oxide material is expected to be completed in the third quarter and milling in the fourth quarter of 2020. The viability of mining the sulfide Hugh Zone continues to be assessed. The mill operated at an average of 528 tpd.

ON FINANCING

  • Aura Resources Inc. initiated a non-brokered private placement aiming to raise between $500 K and $1 M (Taviche, Oaxaca).
  • Prospero Silver Corp. announced that the previously disclosed proposed consolidation of its shares, on a 10 to 1 basis, should have taken effect on July 7, 2020 (Pachuca East, Hidalgo).
  • Mithril Resources Ltd. received firm commitments to raise A$3.5 M through a share placement. Funds are to be used for the maiden drill program at its Coplaquin property in Durango.
  • Solaris Resources Inc. announced its common shares have been approved to list on the TSX Venture Exchange, and expects the trading is to be effective on July 13, 2020 (La Verde, Michoacan).
  • Advance Gold Corp. closed the previously announced private placement, for gross proceeds of $301 K (Tabasqueña, Zacatecas).
  • Vizsla Resources Corp. announced a bought deal private placement with Canaccord Genuity Corp. on behalf of an underwriting syndicate to raise C$25 M (Panuco, Sinaloa).

ON RESOURCES AND DEVELOPMENT

  • Mexican Gold Mining Corp. announced the commencement of a 10,000 m drill program to test all targets at Las Minas, Veracruz. A focus of the drilling is to expand and upgrade the current resource at El Dorado, follow up a previous 5.2 m pyrite rich quartz vein intersection @ 8.94 gpt Au at Cinco Señores, two high-grade vein trends at the Changarro zone, and the Las Minillas skarn occurrence. Other activities in preparation of the preliminary economic assessment (PEA) include the environmental baseline study, an enhanced metallurgy study and a Lidar digital terrain model.
  • GR Silver Mining Ltd. released historic drilling results from the San Juan area at its Plomosas property in Sinaloa. Highlighted true width (tw) intervals comprise 1.5 m @ 2.1 Gpt Au, 8 gpt Ag, 0.8% Pb, 4.1% Zn; 21.8 m @ 1.0 gpt Au, 7 gpt Ag, 1.5% Pb, 1.0% Zn; 2.4 m @ 15.1 gpt Au, 45 gpt Ag, 3.1% Pb, 0.9% Zn; 10.4 m @ 0.7 gpt Au, 7 gpt Ag, 1.6% Pb, 2.3% Zn; 25 m @ 0.3 gpt Au, 26 gpt Ag, 0.6% Pb, 0.8% Zn. These results extend mineralization 600 m on the San Juan system, to a total of 1 km in longitude.
  • GoGold Resources Inc. released the assay results from eight diamond drill holes at the Los Ricos South project in Jalisco. The San Juan, Rascadero, and East vein zones were tested, with highlighted results comprising 8.8 m @ 0.23 gpt Au, 44 gpt Ag at San Juan; 41.0 m @ 1.36 gpt Au, 168 gpt Ag (including 4.0 m @ 11.85 gpt Au, 1,295 gpt Ag); 18.4 m @ 5.18 gpt Au, 500 gpt Ag (including 3.2 m @ 26.2 gpt Au, 2,372 gpt Ag); 12.6 m @ 0.70 gpt Au, 111 gpt Ag at Rascadero; 3.0 m @ 0.33 gpt Au, 40 gpt Ag; 6.1 m @ 0.26 gpt Au, 36 gpt Ag at the East vein.
  • Golden Minerals Co. has commenced drilling at its Rodeo property in Durango. “The upcoming drill program will expand on the historic drilling campaigns that successfully tested multiple gold-quartz veins and breccias of the Rodeo low sulfidation vein system with encouraging results”. Highlighted historic drills results include 28.44 m @ 3.04 gpt Au, 5 gpt Ag; 25.4 m @ 3.79 gpt Au, 4 gpt Ag; 22.35 m @ 3.28 gpt Au, 17 gpt Ag; 28.45 m @ 4.87 m @ 10 gpt Ag31.2 m @ 5.99 gpt Au, 12 gpt Ag; 19.15 m @ 2.58 gpt Au, 5 gpt Ag; 19.2 m @ 1.93 gpt Au, 6 gpt Ag.
  • Magna Gold Corp. provided an operational update on its San Francisco mine in Sonora. “During the first two months of operations, the San Francisco Mine reported sales of US$8.53 million and operating costs of US$3.77 million with an operating margin of US$4.76 million. The Company produced 5,087 ounces of gold and sold 4,977 ounces of gold at an average cost of US$741 per ounce of gold produced and an average cost of $758 per ounce of gold sold. Gold production in May was 2,349 ounces and in June reached 2,738 ounces”. The company intends to complete the pre-feasibility study (PFS) by the end of July, when the processing of new fresh mineralized material is to start. Cash at the end of June at the San Francisco mine was US$8.4 M.

ON DEALS AND CORPORATE ISSUES

  • Aura Resources Inc. expects to change its name to Gold79 Mines Ltd. following the closing of the Territory Metals acquisition (Taviche, Oaxaca).
  • Brigadier Gold Ltd. entered into a binding letter of intent with Minera Camargo S.A. de C.V. for an option to acquire 100% interest in the Picachos property in Sinaloa. To acquire the 3,954 ha property Brigadier has to pay Minera Camargo US$275 K over five years and issue a total of 4 M shares over the same period, and 1 M shares when defining a 350 K Oz Au resource and US$725 K and 1 M shares when a feasibility report is completed, US$2 M upon commercial production commencement and a 2% NSR.
  • First Mexican Gold Corp. announced the change name to QcX Gold Corp. has been made effective on July 6, 2020 (Hilda, Sonora).
  • Candente Gold Corp. informed its due diligence team conducted the visits to the San Dieguito de Arriba processing plant and the historic El Dorado mine in Nayarit. The due diligence visit is part of the Memorandum of understanding (MOU) between Candente and Magellan Acquisition Corp. “The results of these tests along with recommendations for rehabilitation work and projections of ongoing operating expenses will provide the basis for a cost estimate to return the plant to operational status with feed material from the El Dorado Property.” (El Oro, Estado de México).
  • Silver Tiger Metals Inc. commenced underground channel sampling on the high-grade silver veins north of the historic El Tigre mine, in Sonora. “The areas of focus includes the Caleigh vein, the Canon Combination vein (unmined portion of the El Tigre vein), the Protectora vein and the Fundadora vein, all of which are located in the three kilometers of exposed veins at surface north of the historic El Tigre Mine”.

ON SOCIAL RESPONSIBILITY

  • Don David Gold Mines (Gold Resources) informed on the actions taken to work under the Coronavirus pandemic emergency at its operations in Oaxaca. The company supports the Mining Fund with US$8.34 M ($187.7 M pesos) and US$533 K ($12 M pesos) for community deals and infrastructure.
  • Minera Media Luna (Torex Gold) in coordination with local and State authorities released 300 K tilapia alevins (juvenile fish), with a shared company-authorities investment of $44.4 K ($1 M pesos). Also, $39.2 K ($881,764 pesos) were delivered to help the fishermen to modernize their engines and boats.
  • Minera Cuzcatan (Fortuna Silver) announced its plan to plant 13,500 seedlings of native species of the central valleys of Oaxaca in 15 ha of ground. The company has planted already 25,000 seedlings over the last three years on 25 ha.
  • Fresnillo PLC made a recount of the activities that the company has done regarding reforestation as years go by. The Bosque Sustentable Porvenir in Durango was established in 977 ha in association with the Instituto Nacional de Investigaciones Forestales, Agrícolas y Pecuarias. In Juanicipio, Zacatecas, 21,596 plants were relocated, and 14.3 ha were re-forested with 6,787 greenhouse seedlings. At La Herradura, in Sonora, 4,975 plants have been relocated in eight ha, and reforested 2 hectares more. Overall, 1.4 M seedlings have been produced since 2003 by the company.
  • Industrias Peñoles created in Torreon, Coahuila, the 18 ha Bosque del Centenario in 2001, which is now a green space in the city. The company’s greenhouse produces and donates to the community and its members 80,000 seedlings per year.

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:   Vapor whiffs on a cool morning in a hot spring field in Queretaro. Picture by Jorge Cirett.

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