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

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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.

/ gambusinoprospectormexico / Leave a comment

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

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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.

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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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The Mining and Exploration News in Mexico: Highlights on the Fifth Week of April, 2020

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265

By Jorge Cirett

During the 18th week of the year (April 27th to May 3rd, 2020), at least 34 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, INEGI presented production of metals and minerals for February. Camimex continues seeking the lifting of the mining halt during the current Coronavirus emergency. The Silver Institute informed Mexico continues to hold the premier position in silver production. Canada, unlike Mexico, permitted mines to operate under the Covid-19 emergency. ON EXPLORATION, in Baja California, One World Lithium is planning to begin drilling in June 2020. In Sonora, Colibri released drilling results at Evelyn, and completed a drone survey at El Mezquite; Sonoro updated on exploration at Cerro Caliche. In Durango, Canasil outlined plans for a drill program at Nora. In Jalisco, GoGold released results from eight holes at Los Ricos South.  ON MINING, Sierra Metals and Equinox Gold reported on the extension of the suspension on mining in Mexico. Agnico Eagle, Capstone, Fresnillo PLC, Excellon Resources, Consolidated Zinc and Alamos Gold released first quarter 2020 results. ON FINANCING, Mag silver completed a non-brokered private placement for C$60 M. SilverCrest Metals closed the private placement for C$27 M. Discovery Metals granted 4.83 M shares. Mexus Gold converted $242.5 K of debt into shares. ON RESOURCES AND DEVELOPMENT, Torex gold updated mineral resources at its El Limon Guajes mine in Guerrero. Agnico Eagle updated on the exploration status of the Santa Gertrudis project in Sonora. Evrim announced an update on the Ermitaño mineral resources in Sonora. Consolidated Zinc updated the mineral resources estimate at its Plomosas mine in Chihuahua. Minera Alamos reported results from drilling at its Santana project in Sonora. ON DEALS AND CORPORATE ISSUES, Telson Mining, Santacruz Silver, Kootenay Silver and Canuc Resources announced that they are to abide by the Canadian Securities Administration extension granted for their annual filings. Xtierra informed on the deal with Minera Portree for control of the Bilbao deposit in Zacatecas, as well of an NSR on claims in the area of Capstone’s Cozamin mine. GR Silver completed the second option payment on the San Marcial project in Sinaloa. ON SOCIAL RESPONSIBILITY. The AIMMGM and Mujeres WIM de Mexico, from Sinaloa donated food for doctors and health workers. Minera Mexico donated 500 food packages in Santa Barbara, Chihuahua. Minera Cuzcatan created a fund for community emergencies. Fresnillo is building a prefabricated hospital in Fresnillo, Zacatecas. Fresnillo PLC is sanitizing public spaces in Caborca, Sonora.

ON MEXICO ISSUES

  • According to INEGI (Mexican Statistics Bureau), during January of 2020 the gold production was: Sonora 3,115 Kg, Guerrero 1,592 kg, Chihuahua 1,554 kg, Zacatecas 1,157 Kg and Durango 976 Kg. For the same period silver production was: Chihuahua 102,205 Kg, Durango 74,909 Kg and Zacatecas 203,251 Kg. Lead production was: Zacatecas 13,184 tonnes, Chihuahua 3,289 tonnes and Durango 1,904 tonnes. For zinc production was: Zacatecas 29,931 tonnes, Chihuahua 9,030 tonnes and Durango 8,364 tonnes. On iron production was: Coahuila 338,198 tonnes, Colima 201,016 tonnes, Michoacan 198,023 tonnes, Chihuahua 37,664 tonnes and Durango 8,767 tonnes.
  • CAMIMEX and the PRI senate members had a virtual conference on which they shared their viewpoints on how the COVID-19 emergency is to affect the mining industry and what can be done to ameliorate the damage.
  • The Silver Institute informed that Mexico maintains its position as the major silver producer in the World. In 2019 Mexico produced 190.3 M Oz, Perú 135.4 M Oz and China 110.7 M Oz.
  • In striking difference with Mexico, Canada permitted mines to operate under the Covid-19 virus emergency. Miners in Mexico set their hopes for reactivation on the petition by USA and Canadian authorities to the Mexican government for a stepped reactivation of productive chains.
  • INEGI (Statistics Bureau) presented metal production figures for February 2020:INEGI Feb 202021

ON EXPLORATION

  • Sonoro Metals Corp. released the “Cerro Caliche Development Report” that summarizes the results of work to advance the understanding of the mineralized system of the project located in Sonora. “The report also assesses regional and property geology, the mapped zonation of the Cerro Caliche low-sulfidation epithermal system, and related potential for significantly higher grades at depth. It also includes two grade x thickness modeling tools, namely – longitudinal 3D sections and Isopachs, all based on drilling to date”.
  • Colibri Resource Corp. released results of its maiden campaign at its Evelyin project in Sonora. Significant drill hole intersections comprise 21.90 m @ 0.14 gpt Au (including 5.05 m @ 0.37 gpt Au); 27.00 m @ 0.10 gpt Au; 10.50 m @ 0.11 gpt Au. Further geologic mapping and rockchip sampling is to follow once the Covid-19 restrictions are lifted.
  • Colibri Resource Corp. recently completed a high definition topographical drone survey over its El Mezquite project in Sonora.
  • One World Lithium Inc. is planning the next phase of drilling at its Salar del Diablo project in Baja California for early June 2020, following completion of the recently announced financing.
  • GoGold Resources Inc. released the assays for eight diamond drill holes at the Los Ricos South project in Jalisco. Three holes were drilled at the San Juan area and the rest at the Main Area. Core length significant intersections comprise: 20.1 m @ 0.33 gpt Au, 100 gpt Ag (including 6.0 m @ 0.97 gpt Au, 257 gpt Ag); 23.2 m @ 0.68 gpt Au, 113 gpt Ag; 26.6 m @ 0.29 gpt Au, 47 gpt Ag (including 4.7 m @ 1.24 gpt Au, 129 gpt Ag); 22.3 m @ 1.01 gpt Au, 52 gpt Ag (including 10.0 m @ 1.79 gpt Au, 64 gpt Ag); 4.2 m @ 2.87 gpt Au, 344 gpt Ag; 15.4 m @ 0.79 gpt Au, 91 gpt Ag.
  • Canasil Resources Inc. outlined plans for an initial core drill program on the Candy vein at the Nora project in Durango. Rock samples in the vein have returned 1.0 m @ 3.72 gpt Au, 605 gpt Ag, 0.97%Cu, 1.2% Pb, 0.4% Zn; 1.4 m @ 0.89 gpt Au, 392 gpt Ag, 0.06% Cu, 0.2% Pb; 1.0 m @ 2.98 gpt Au, 540 gpt Ag, 0.85% Cu, 4.0% Pb, 3.5% Zn; 0.6 m @ 2.28 gpt Au, 316 gpt Ag, 0.57% Cu, 2.4% Pb, 0.2% Zn; 0.8 m @ 3.03 gpt Au, 585 gpt Ag, 2.8% Cu, 5.2% Pb, 1.8% Zn; 0.6 m @ 6.55 gpt Au, 10 gpt Ag, 0.06% Cu, 0.3% Pb; 0.4 m @ 12.55 gpt Au, 12 gpt Ag, 1.02% Cu, 2.7% Pb, 0.7% Zn. Dump samples have returned up to 2.89 gpt Au, 193 gpt Ag, 2.64% Cu, 8.0% Pb, 9.8% Zn.

ON MINING

  • Sierra Metals Inc. reported that the Mexican Federal Government extended the suspension of all non-essential activities to contain the advance of COVID-19 virus. The suspension will now continue until May 30, 2020, but the suspension will not apply to the municipalities that present a low or null transmission of the virus, as of May 18, 2020. This raises the possibility that the Bolivar mine in Chihuahua may be able to resume operations, due to its remote location.
  • Equinox Gold Corp. announced the temporary suspension of mining activities at its Los Filos mine in Guerrero has been extended until May 30, 2020, with the potential to an earlier start-up by May 18, 2020. The solution from the leach pads has continued to be processed at a slower pace.
  • Agnico Eagle Mines Ltd. informed the suspension related to the COVID-19 virus emergency is to cost $6.6 M in Mexico. During the first quarter 2020, 480 K tonnes were processed at Pinos Altos, Chihuahua, at a daily rate of 5,275 tonnes per day (tpd) of material grading 2.36 gpt Au to produce 33,310 Oz Au at production cash cost of $1,077 per Oz Au and total cash cost of $747 per Oz Au. The drilling budget for the year is $7.8 M on a total of 42,000 meters. Current proven and mineral reserves are 957 K Oz Au, 24 M Oz Ag; indicated and measured resources of 1.1 M Oz Au, 26 M Oz Ag; inferred mineral resources stand at 435 K Oz Au. At La India, in Sonora, 1.53 M tonnes were processed at a 16,857 tpd rate, grading 0.74 gpt Au to produce 22,926 Oz Au at total cash cost per Oz Au of $778. Residual leaching continues through the Coronavirus shutdown at La India.
  • Capstone Mining Corp. presented production and financial results for Q1 2020, including figures from its Mexican operations. At Cozamin, in Zacatecas, 8.7 M pounds of copper were produced at cash cost $0.95 per pound of copper. As part of the expansion project, an 818 m raise bore was completed, improving ventilation on the deepest part of the mine. “The final key component of this expansion, the Calicanto one-way ramp, continues as scheduled and on budget to be completed in December 2020”.
  • Fresnillo PLC. presented its first quarter 2020 production report. During the first quarter 130,000 meters of drilling were completed on operating mines, in addition 38,000 meters “were drilled at the Fresnillo, San Julián and Guanajuato districts in Mexico, and two projects outside Mexico (Peru and Chile). Interesting results were obtained in the Fresnillo district that merit follow up…”.Fresnillo Production Table, Q1 20201
  • Excellon Resources Inc. announced first quarter 2020 production results from the Platosa mine in Durango. During the period 19,899 tonnes were mined, with 19,042 tonnes processed, grading 542 gpt Ag, 5.44% Pb, 6.78% Zn, recovering 89.3% Ag, 82.8% Pb, 74.9% Zn, to produce 296,281 Oz Ag, 1.89 M Lb Pb, 2.13 M Lb Zn, or 523,742 Oz AgEq.
  • Consolidated Zinc Ltd. disclosed first quarter 2020 operations report at its Plomosas mine in Chihuahua. During the quarter 9,987 tonnes were mined, 10,321 tonnes were processed @ 16.6% Zn, 8.4% Pb, 46 gpt Ag. Regional exploration has outlined several zones of interest to the northwest of the mine, returning several high-grade gold-copper samples.
  • Alamos Gold Inc. presented first quarter 2020 results, including figures from its Mexican operations. At Mulatos, Sonora, 1.92 M tonnes of ore were mined, 2.34 M tonnes of waste moved, 22,342 tpd crushed, with 2.03 M tonnes staked on the heap @ 1.25 gpt Au, containing 81,933 Oz Au, and producing 42,600 Oz Au on an average recovery rate of 52%. Alamos is finalizing project design and plans to finalize the La Yaqui Grande project economics and announce a construction decision in the second quarter of 2020. Exploration is moving beyond the main Mulatos area into earlier stage project within the 28,972 ha land package, with $1.8 M invested during the period.

ON FINANCING

  • Mag Silver Corp. arranged a non-brokered private placement with Mr. Eric Sprott for gross proceeds of C$60 M (Juanicipio, Zacatecas).
  • Telson Mining Corp. is seeking a 30 day extension from the TSX Venture Exchange to close its non-brokered private placement offering for up to C$3 M of gross proceeds.
  • SilverCrest Metals Inc. closed the private placement with SSR Mining Inc. for C$26.98 M, strengthening SilverCrest’s financial position to a cash balance of C$234 M in its treasury. (Las Chispas, Sonora).
  • Discovery Metals Corp. granted 4.83 M options to acquire common shares of the company at $0.47 per share (Cordero, Chihuahua).
  • Mexus Gold US. Informed $242,500 of debt incurred by the company was converted to shares already held in reserve.
  • Mag Silver Corp. completed the previously announced non-brokered private placement for gross proceeds of C$60 M. “A finders’ fee is payable in connection with the Offering to a group of financial advisors led by Clarus Securities Inc.” (Juanicipio, Zacatecas).

ON RESOURCES AND DEVELOPMENT

  • Discovery Metals Corp. announced that during the last quarter of 2019 a second rig was added to the drilling campaign at Cordero, Chihuahua, and that a non-brokered private placement for $19.0 M was completed. By the end of the period the company had $23.95 M in cash and cash equivalents.
  • Torex Gold Resources Inc. updated mineral reserves and resources at its El Limón Guajes Complex in Guerrero. Open pit proven and probable reserves stand at 24.82 M tonnes @ 2.92 gpt Au containing 2.33 M Oz Au and underground reserves of 0.66 Mt @ 6.94 gpt Au containing 0.15 M Oz Au. Open pit measured and indicated resources stand at 35.78 Mt @ 2,77 gpt Au containing 3.19 M Oz while underground M&M resources hold 1.17 Mt @ 7.04 gpt Au containing 0.26 M Oz Au. Total reserves and M&M resources contain 5.93 M Oz Au, and total inferred resources another 0.45 M Oz Au.
  • Agnico Eagle Mines Ltd. updated on the exploration of its 44,145 ha Santa Gertrudis project in Sonora. As of the end of 2019 the project holds open-pit oxide indicated mineral resources of 5.1 M tonnes @ 0.64 gpt Au containing 104 K Oz Au and inferred mineral resources of 19.1 M tonnes @ 1.17 gpt Au containing 717 K Oz Au. Underground sulfide inferred resources stand at 3.1 M tonnes @ 4.58 gpt Au, containing 451 K Oz Au. Selected true width intervals of drilling at La Amelia deposit comprise 6.0 m @ 3.7 gpt Au, 3 gpt Ag; 13 m @ 3.3 gpt Au, 10 gpt Ag (including 5.5 m @ 5.3 gpt Au, 17 gpt Ag); 10 m @ 5.3 gpt Au, 7 gpt Ag (including 4.5 m @ 10.3 gpt Au, 5 gpt Ag); 10 m @ 3.2 gpt Au, 34 gpt Ag; 4 m @ 3.5 gpt Au, 5 gpt Ag; 4.5 m @ 5.1 gpt Au, 20 gpt Ag.
  • Evrim Resources Corp. announced an update to the gold-silver resource on the Ermitaño project in Sonora. Property owner First Majestic Silver Corp. released the following figures: An indicated resource of 2.1 M tonnes @ 4.59 gpt Au, 70 gpt Ag containing 311 K Oz Au, 4.73 M Oz Ag; an inferred resource of 3.73 M tonnes @ 3.08 gpt Au, 58 gpt Ag containing 370 K Oz Au, 6.98 M Oz Ag. Evrim holds a 2% NSR on the Ermitaño project.
  • Consolidated Zinc Ltd. updated the mineral resource estimate for its Plomosas mine in Chihuahua. Indicated mineral resources stand at 165 K tonnes @ 13.9% Zn, 6.3% Pb, 35.7 gpt Ag, containing 23 K tonnes Zn, 10 K tonnes Pb, 189 K Oz Ag. Inferred resources hold 799 K tonnes @ 13.0% Zn, 3.0% Pb, 17.5 gpt Ag, containing 104 K tonnes Zn, 24 K tonnes Pb, 450 K Oz Ag.
  • Minera Alamos Inc. reported additional results from its phase II drill program at its Santana project in Sonora. Significant intervals comprise 17.7 m @ 0.58 gpt Au; 53.2 m @ 0.75 gpt Au; 68.7 m @ 0.50 gpt Au; 101.0 m @ 0.37 gpt Au; 73.7 m @ 0.36 gpt Au; 143.7 m @ 0.50 gpt Au; 9.7 m @ 0.29 gpt Au; 25.3 m @ 0.31 gpt Au; 247.9 m @ 0.60 gpt Au. This campaign has extended the deposit by 50-100 m to the south-southwest.

ON DEALS AND CORPORATE ISSUES

  • Telson Mining Corp. informed that the Canadian Securities Administration granted blanket relief for all reporting issuers, providing up to a 45-day extension on periodic filings, and that Telson will abide by it (Campo Morado, Guerrero).
  • Santacruz Silver Mining Ltd. will be postponing the filing of its annual consolidated financial statements, and abide by the 45-day extension granted by the Canadian Securities Administration (Veta Grande, Zacatecas).
  • Kootenay Silver Inc. expects to file the Annual filings before the extension deadline required by the Canadian Securities Administrators (Columba, Chihuahua).
  • Xtierra Resources Inc. reported results for the year 2019. The company holds the rights to the Bilbao project, and acquired last year a 1.5% royalty on the project by paying C$51 K in cash and C$49 K in shares. Xtierra entered into an agreement to acquire 88% of Minera Portree by the payment of C$56 K and 2 M shares. Among the assets of Minera Portree is the right to a 2% NSR on six mining concessions adjacent to Capstone’s Cozamin mine in Zacatecas. Five of those concessions were acquired by Capstone in 2017 and 2019. An extension agreement was signed with Buchan Resources Ltd. to defer repayment of principal and accrued interest of its $800 K debt, in consideration of which 13 M shares were issued to Buchan (Bilbao, Zacatecas).
  • GR Silver Mining Ltd. announced the completion of the second option payment on the San Marcial project in Sinaloa, which included the issuance of 750 K common shares to the optionor.
  • Canuc Resources Corp. announced the postponement of the filing of the annual consolidated financial statements, according with the Canadian Securities Administration blanket extension (San Javier, Sonora).

ON SOCIAL RESPONSIBILITY

  • The Asociación de Ingenieros Mineros, Metalurgistas y Geólogos de Mexico (AIMMGM) in coordination with Mujeres WIM de México, both from the Sinaloa District, donated food for doctors and health care workers at the Riviera Hotel, where they are hosted.
  • Minera México donated 500 food packages in Santa Barbara, Chihuahua.
  • Minera Cuzcatan (Fortuna Silver) created a Fund for community emergencies. Said Fund is to be used to cover the need for medications, groceries and funerary expenses, in coordination with local municipality authorities and adherence to health dispositions.
  • Fresnillo PLC is hurriedly building a hospital for Covid-19 patient care. The pre-fabricated building is to be installed by the side of the local IMSS clinic in Fresnillo, Zacatecas, and is to have a capacity for 38 patients.
  • Fresnillo PLC in coordination with the Caborca Municipality is sanitizing public spaces. These include 40 areas, like open plazas, parks, supermarkets, bus stations, clinics, hospitals, Red Cross facilities, firefighters station banks and local national guard facilities, all of which will be sanitized constantly.

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: Milky quartz float with oxidized sulfide in an orogenic gold system in Oaxaca. Picture by Jorge Cirett.

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

/ Gambusino Prospector / Leave a comment

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By Jorge Cirett

Amidst the Coronavirus widespread suspension of activities, including mining and exploration, decreed by the Mexican government, a record number of press releases was issued. During the 14th week of the year (March 30th to April 5th, 2020), at least 57 press releases were announced by companies working in Mexico, of which 20 were on how companies were dealing with the situation. ON MEXICO ISSUES, a national decree by the federal government suspended all non-essential activities, which include mining and exploration, until the end of April. The DGM (Mining Regulator) is to manage everything through electronic channels during the Coronavirus contingency (in practical terms, do not expect anything done during this period of time). Previous to the federal government decree, the Sonoran government ordered the stoppage of all work on the mines on the State. Mexico is well poised for a substantial growth in lead and zinc production in 2020 (although the work suspension on mines might prevent it).  ON EXPLORATION, in Sonora, Silver Viper released more drilling results on El Rubi zone of its La Virgina project. Tocvan Ventures commenced geophysical and soil survey programs at its Pilar project. In Chihuahua, Discovery Metals and Kootenay Silver announced the suspension of activities at its Cordero and Columba projects respectively. In Sinaloa, Kootenay Silver announced the suspension of activities at El Copalito. Advance Gold released drilling information on its Tabaqueña project.  ON MINING, Mag Silver, Excellon Resources and Odyssey Marine Exploration presented 2019 results. First Majestic plans to invest $46 M in capital expenditures at its Santa Elena project. GoGold completed the commissioning of a SART palnt at its Parral tailings facilities. Equinox plans to produce 170 K – 190 K Oz Au during 2020 at Los Filos, Guerrero, and invest a total of $75 M. ON FINANCING, Orla Mining closed a bought deal for C$75 M. Mithrill is to conduct a rights issue for share holders in Australia and New Zealand to raise $2.45 M. Southern Silver announced the exercise of 2015 and 2016 warrants and options, raising $1.25 M. ON RESOURCES AND DEVELOPMENT, First Majestic updated the mineral resource estimate on seven of its Mexican properties. Sierra Metals updated the mineral resource estimate on Bolivar, Chihuahua. Prime Mining produced a new resource estimate for its Los Reyes project in Sinaloa. Mag Silver has to obtain funding, or see its 44% JV participation in the Juanicipio project (Zacatecas) dwindle. Great Panther filed two technical reports on the Guanajuato mine complex. Bacanora Lithium granted a contract to GRES on the Sonora Lithium project. Golden Minerals presented a new PEA for its Velardeña properties. GR Silver Mining released underground channel results from the Plomosas project in in Sinaloa. ON DEALS AND CORPORATE ISSUES, GR Silver completed the acquisition of the Plomosas project in Sinaloa. Argonaut Gold and Alio Gold are merging. Orex Minerals and Pan American Silver are forming a JV on the Sandra project in Durango. Riverside is going ahead with the Peñoles project (Durango) spin-off. Mithrill Resources informed on the acquisition of Sun Minerals. Southern Silver entered into an agreement with Monarch Minerals to purchase a mineral concession adjacent to Cerro Las Minas project in Durango. Oroco Resources amended disclosures on the Santo Tomas project technical report. Odyssey Marine Exploration continues with the arbitration process for its offshore phosphate project in Baja California Sur. ON SOCIAL RESPONSIBILITY. Newmont GoldCorp Peñasquito donated 500 COVID-19 tests and delivered thousands of cleansing packages in the communities near the Peñasquito mine in Zacatecas..

ON MEXICO ISSUES

  • Mining halted in Mexico. A national decree by the Mexican federal government suspended all non-essential activities for 30 days on the wake of the fight on the propagation of the coronavirus. Mining is not considered essential thus all operations are due to shut down.
  • Mexico is well positioned for increased lead and zinc production, BNamericas. Supported by expected continued work at Newmont’s Peñasquito mine, Southern Copper’s San Martin mine and Peñoles operations, the lead and zinc Mexican production is poised to grow in 2020. Lead production could increase 27.8% to 194.9 K tonnes, with the expected production of 90.7 K tonnes at Peñasquito. Zinc production could increase 27% to 633.2 K tonnes, with its expected production of 192.8 K tonnes. Both zinc and lead face extremely low prices, with zinc at US$0.85/Lb and lead close to US$0.75/Lb.
  • To reduce coronavirus contagion risks, the Dirección General de Minas (DGM) initiated a protocol to process requests and information only through electronic media, for the time that the contingency lasts (in practical terms, the already slow pace of proceedings at the DGM is coming to halt for the time being).
  • The Mining Fund served its purpose at Jiapaz, Zacatecas, where solar panels were installed to power the water system on La Martinica de Guadalupe neighborhood.
  • The Sonora government issued orders to stop all non-essential activities, including mining, as a mean to reduce the propagation speed of the COVID-19 pandemic in the state.
  • Mining companies that presented press releases on Coronavirus related suspension of activities: Argonaut Gold, Sierra Metals, Pan American Silver, Premier Gold Mines, Equinox Gold, GoGold Resources, Gold Resource, Excellon Resources, Endeavour Silver, Azucar Minerals, Avino Silver & Gold Mines, Agnico Eagle Mines, Almaden Minerals, Alamos Gold, Fortuna Silver, Mithrill Resources, Vizsla Resources, Torex Gold, Great Panther, and Golden Minerals.

ON EXPLORATION

  • Silver Viper Minerals Corp. released drilling results at its La Virginia project in Sonora. The Rubi zone strike length increased by 100 m, to a total of 400 m, where a total of 6,103 m in 20 holes have been collared; a further 852 m in four holes were drilled at the Macho Libre target. The results for the last nine holes are still pending. Highlighted true width intervals comprise: 1.42 m @ 156 gpt Ag, 1.79 gpt Au; 2.84 m @ 249 gpt Ag, 1.55 gpt Au (including 0.36 m @ 1,584 gpt Ag, 5.56 gpt Au); 17.04 m @ 28 gpt Ag, 0.69 gpt Au; 1.07 m @ 52 gpt Ag, 1.27 gpt Au; 1.07 m @ 124 gpt Ag, 3.32 gpt Au; 4.26 m @ 38 gpt Ag, 0.64 gpt Au; 6.04 m @ 74 gpt Ag, 0.99 gpt Au (including 1.78 m @ 187 gpt Ag, 2.48 gpt Au. The company recently completed a 4,800-hectare; 718 line-km helicopter borne magnetic-radiometric geophysical survey centered on El Rubi zone.
  • Discovery Metals Corp. announced the temporarily suspension of all exploration activities at its Mexican operations due to the COVID-19 risks. “Discovery has already completed 48 holes totaling 17,500 metres of its planned 30,000 – 35,000 metre Phase 1 drill program. The Company will provide ongoing exploration updates for the 34 drill holes not previously press released once results have been received and validated”. Discovery had a cash balance of CAD$24 M by the end of 2019 (Cordero, Chihuahua).
  • Tocvan Ventures Corp. announced the commencement of the 2020 field program at the Pilar project in Sonora. The focus is to expand the known areas of mineralization, gain a better understanding of structural controls, identify mineralization targets and define drill targets. A multiple-task (?) geophysical survey is underway concurrently with a close-spaced soil sampling program. These surveys will be followed up with structural refining, XRF survey across the property and reviewing historical drill holes.
  • Kootenay Silver Inc. temporarily suspended the current drill programs at its Columba (Chihuahua) and Copalito (Sinaloa) projects, to reduce the propagation risks of the Coronavirus.
  • Advance Gold Corp. released information on drilling at its Tabasqueña project in Zacatecas. One hole was abandoned because of challenging drilling conditions; a second hole intercepted a black slate with small sulphide lenses 0.3 cm to 1 cm in thickness, this unit explains the chargeability anomaly detected by the geophysical survey. The best intercept was 1.25 m @ 2.79% Pb; the third hole also intersected the sulphide bearing black slate unit, assays pending. Teck’ San Nicolas VMS project is 11 kilometers East of Tabasqueña.

ON MINING

  • First Majestic Silver Corp. plans to invest US$46.3 M in capital expenditures at its Santa Elena mine in Sonora. Exploration, the installation of an autogenous mill, exploration and development of the Ermitaño West, mine access preparation and prefeasibility studies are among the use of the funds involved.
  • GoGold Resources Inc. reported the completion of commissioning of the SART plant at its Parral Tailings facility in Chihuahua. “The main economic drivers are the recovery of a high-grade saleable copper sulfide product, the re-generation of cyanide, which is the largest single operating cost at Parral, and improve the leaching efficiency of the heap”. GoGold reduced the need to purchase cyanide by $200 K in March.
  • Excellon Resources Inc. reports 2019 annual and Q4 financial results. At Platosa, in Durango, 19.8 K tonnes @ 435 gpt Ag, 4.84% Pb, 6.39% Zn were processed, recovering 91.7% Ag, 80.2% Pb, 76.5% Zn to produce 259.2 K Oz Ag, 1.69 M Lb Pb, 2.06 M Lb Zn during the quarter. For the full year 75.2 K tonnes @ 409 gpt Ag, 4.75% Pb, 6.82% Zn were processed , recovering 89.9% Ag, 79.2% Pb. 77.7% Zn to produce 1.05 M Oz Ag, 6.1 M Lb Pb, 8.4 M Lb Zn, or 1.93 M Oz AgEq.
  • Odyssey Marine Exploration Inc. reported results for the full year 2019.
  • Equinox Gold Corp. provided production guidance for 2020, including figures from its operations in Mexico. At the Los Filos mine in Guerrero, production is set to range between 170 K to 190 K Oz Au, at an AISC of $1,000 to $1,050 per Oz Au, sustaining capital of $24 M and Non-sustaining capital of $51 M. “The Company is advancing an expansion of the Los Filos mine complex including enlarging the Los Filos open pit, developing a second underground mine (Bermejal), adding a new open pit (Guadalupe) and constructing a new carbon in leach (“CIL”) plant to process higher-grade ore…….. Equinox Gold has budgeted a total capital spend of $75 million at Los Filos during 2020. Non-sustaining capital of $51 million relates primarily to the expansion project and includes $20 million for pre-stripping of the Guadalupe open pit and $23 million allocated to Bermejal underground development”.

ON FINANCING

  • Newmont Corp. has announced expiration and final results of the tender offers for its 3.5% senior notes due 2022 and Goldcorp’s 3.7% notes due 2023. (Peñasquito, Zacatecas).
  • Mithrill Resources Ltd. will be conducting a pro-rata non-renounceable rights issue to allow shareholders, of ordinary shares with a registered address in Australia or New Zealand, to apply for one share for every ordinary share held, to raise $2.45 M (Copalquin, Durango).
  • Southern Silver Exploration Corp. informed recent warrant and option exercised during the current fiscal period. Warrants and options issued in 2015 and 2016 were exercised for $1.25 M in gross profits (Cerro La Mina, Durango).
  • Orla Mining Ltd. closed its previously announced bought deal financing with a syndicate of underwriters led by Stifel GMP and including Desjardins Capital Markets, Paradigm Capital and Cormark Securities Inc. for aggregate gross proceeds of C$75 M.

ON RESOURCES AND DEVELOPMENT

  • First Majestic Silver Corp. updated mineral reserve and mineral resource estimates for the San Dimas (Durango), Santa Elena (Sonora) and La Encantada (Coahuila) producing mines, as well as from its San Martín (Jalisco), La Parrilla (Durango), Del Toro (Zacatecas) and La Guitarra (Estado de Mexico) properties.

First Majestic Reserves and Resources 2019

  • Sierra Metals Inc. updated mineral reserve and mineral resource estimates for its Bolivar mine in Chihuahua. Mineral reserves decreased by 2.5 M tonnes on mining depletion from 2017, but measured, indicated and inferred resources have significantly grown.

Bolívar Reserves and Resources to 201911

  • Mag Silver Reported 2019 annual results. Development of the Juanicipio mine (Zacatecas) and processing plant continue, with the plant expected to commence commissioning in mid-2021. Underground development is ongoing, exceeding now 26 Km. Remaining pre-operative initial capital is estimated at $305 M, although this figure can be reduced by cash in hand of the operator of the JV (Fresnillo 56%, Mag 44%) and expected cash flow from mineralized material extracted and processed at the Fresnillo’s mine facilities commencing in mid-2020. “The Company needs to raise additional capital in the future in order to meet its full share of initial capital required to develop the Juanicipio Project. Mag does not generate operating cash flow at this time to fund such obligations, and accordingly, future liquidity will depend upon its ability to arrange debt or additional equity financings. The Company is currently evaluating several proposals. The inability of MAG to fund its 44% share of cash calls would result in dilution of its ownership interest in Minera Juanicipio in accordance with the shareholders’ agreement”. At the end of the year Mag had $71.86 M including cash and cash equivalents of $72.36 M AuEq.
  • Great Panther Mining Ltd. filed two technical reports regarding the Guanajuato mine complex. “The reports are titled “NI 43- 101 Mineral Resource Update Technical Report on the Guanajuato Mine Complex, San Ignacio Mine, Guanajuato State, Mexico”, dated March 17, 2020, and “NI 43-101 Mineral Resource Update Technical Report on the Guanajuato Mine Complex, Guanajuato Mine, Guanajuato State, Mexico”, dated March 27, 2020”.
  • SilverCrest Metals Inc. released protocols to minimize exposure to coronavirus, in order to decrease the risk to employees, contractors, families and communities near Las Chispas project in Sonora.
  • Evrim Resources Corp. updated the resource on the Ermitaño project in Sonora, of which it holds a 2% NSR. Property owner First Majestic Silver Corp. announced a 15% increase in grade and a 345% increase in contained AgEq ounces in the indicated resources compared to the previous estimate. The indicated resources are 2.1 M tonnes @ 4.59 gpt Au, 70 gpt Ag, containing 311 K Oz Au and 4.73 M Oz Ag; the inferred resources stand at 3.73 M tonnes @ 3.08 gpt Au, 58 gpt Ag, containing 370 K Oz Au, 6.98 M Oz Ag.
  • Bacanora Lithium. Announced the granting of a contract to GR Engineering Services for engineering, acquisition and construction services on the Sonora lithium project.
  • Prime Mining Corp. released a new resource estimate for its Los Reyes project (formerly Guadalupe de Los Reyes) in Sinaloa. The pit constrained resources range from 19.75 M tonnes @ 1.31 gpt AuEq measured and indicated resources (M&I) containing 833.1 K Oz AuEq and 7.1 M tonnes @ 1.14 gpt AuEq in inferred resources containing 261.1 K Oz AuEq at a 0.22 gpt AuEq cutoff; to 5.91 M tonnes @ 2.72 gpt AuEq M&I resources and 1.68 M tonnes @ 2.59 gpt AuEq containing 516.2 K Oz AuEq and 140.5 K Oz AuEq respectively, at a cutoff grade of 1.0 gpt AuEq. The pit strip ratio is calculated as 4.6 to 1 waste to ore in six separate pits.
  • Golden Minerals Co. announced positive results from the updated mineral resource estimate and preliminary economic assessment (PEA) for its Velardeña properties in Durango. The PEA states a pre-tax net present value of $85.9 M at an 8% discount rate, an internal rate of return of 138.6%, pre-production capital cost of $10.27 M, post production and working capital $15.93 M and a life of mine of 10 years to produce 10.2 M Oz Ag, 119 K Oz Au. The resource estimate including sulfide and oxide ore comprises 1.35 M tonnes @ 307 gpt Ag, 4.92 gpt Au, 1.54% Pb, 1.78% Zn in measured and indicated resources, containing, 13.34 M Oz Ag, 214 K Oz Au, 45.8 M Lb Pb, 53 M Lb Zn; and 1.76 M tonnes @ 354 gpt Ag, 4.73 gpt Au, 1.72% Pb, 1.86% Zn, containing 20.1 M Oz Ag, 268 K Oz Au, 67.1 M Lb Pb, 72.3 M Lb Zn.
  • GR Silver Mining Ltd. released assay results from initial underground channel sampling from the San Juan workings at the Plomosas Silver project. San Juan is one of six priority areas with underground development not yet exploited by previous owners. Some of the highlighted composites comprise 2.1 m @ 0.30 gpt Au, 552 gpt Ag, 0.7% Pb, 1.0% Zn (including 0.40 m @ 1.2 gpt Au, 3,003 gpt Ag, 2.9% Pb, 3.1% Zn); 5.0 m @ 0.28 gpt Au, 816 gpt Ag, 0.9% Pb, 0.5 % Zn; 2.0 m @ 0.51 gpt Au, 1,145 gpt Ag, 0.9% Pb, 0.4% Zn; 2.8 m @ 0.42 gpt Au, 482 gpt Ag, 0.4% Pb, 0.4% Zn; 9.3 m @ 0.13 gpt Au, 346 gpt Ag, 0.7% Pb, 1.0% Zn; 3.0 m @ 0.11 gpt Au, 485 gpt Ag, 0.2% Pb, 0.3% Zn.

ON DEALS AND CORPORATE ISSUES

  • GR Silver Mining Ltd. Has completed the acquisition of the Plomosas silver project in Sinaloa, from First Majestic Silver Corp. .GR Silver paid CDN$100 K, granted First Majestic a 2% NSR, of which half could be bought for US$1 M, and issued First Majestic 17.1 M shares of GR Silver. The project comes with six areas at the drilling/resource stage, with 563 drill holes totalling over 100,000 m of core drilling and the mining infrastructure of the Plomosas mine, that produced over 2.5 M tonnes of Pb-Zn-Ag ore.
  • Argonaut Gold Inc. and Alio Gold Inc. have entered into a definitive agreement for an at-market merger whereby Argonaut will acquire all of Alio shares. The transaction creates an intermediate producer with four operations rendering 235 K Oz AuEq per year from four mines and presence in Mexico, Canada and USA, and a pipeline that includes Ana Paula (Guerrero), Cerro del Gallo (Guanajuato) and Magino (Canada).
  • Orex Minerals Inc. entered into an agreement to form a JV with Pan American Silver Corp. to explore and develop the Sandra (formerly Sandra Escobar) project in Durango. Orex and Pan American will own a 40% and 60% interest in the JV.
  • Riverside Resources Inc. has received requisite shareholder approval for the spin-out of the Peñoles Project (Durango) to its shareholders. “Once the Arrangement becomes effective, Riverside shareholders will own shares in two public companies: Capitan, which will focus on the development of the Peñoles Project, and Riverside, which will continue to generate prospective mineral properties”.
  • Mithhrill Resources Ltd. Informed on the proposed acquisition of Sun Minerals Pty Ltd., which holds an option to earn up to 100% interest on the Copalquin project in Durango. Due diligence was completed, a formal share agreement for the acquisition of all issued share capital of Sun Minerals was executed and shareholder approval received. On view of recent market developments, Mithrill and Sun Minerals agreed that Mithrill is to raise a minimum of A$1.5 M.
  • Southern Silver Exploration Corp. entered into an agreement with Monarch Minerals Inc. to purchase the El Sol mineral concession in Durango, near the Sothern Silver and Electrum Global Holdings L.P. Cerro Las Minas JV project. The purchase will not form a part of the Cerro Las Minitas JV. Acquisition cost is $US300 K payable in three equal installments on signature, 12 and 18 months, with the vendor retaining a 2% NSR that can be bought by Southern Silver at any time for US$1 M.
  • Oroco Resource Corp. wishes to clarify and amend its disclosures with respect to its Santo Tomas project in Sinaloa. “The BCSC reviewed the Company’s October, 2019 and March, 2020 corporate presentations (the “Presentations”) and its current technical report dated August 22, 2019 and titled “Technical Report Geology, Mineralization, and Exploration of the Santo Tomas Cu-(Mo-Au-Ag) Porphyry Deposit Sinaloa, Mexico” authored by D. A. Bridge, P. Geol.” (the “Report”). Both the current Presentation and the Report have been removed from the Company’s website pending revision. The disclosure issues in the Presentations and the Report with respect to National Instrument 43-101 (the “Instrument”) and Form 43-101F1 are summarized in the following discussion”.
  • Odyssey Marine Exploration Inc. has launched a NAFTA arbitration process on its “Exploraciones Oceánicas” phosphate project off the Pacific coast of Baja California Sur. “The Arbitral Tribunal, consisting of three international arbitrators well-versed in international investment treaties, has been constituted and the parties are now in the process of finalizing the arbitration schedule and procedures with the Tribunal……..“We intend to continue to work diligently and in good faith with Mexico’s current administration to achieve an equitable resolution of this dispute and to help Mexico provide fertilizer to its farmers, but we are prepared to proceed with the full NAFTA arbitration process if necessary, and have recently received increased litigation funding specifically to support this case”. The Exploraciones Oceánicas project contains an estimated 588 M tonnes of phosphate, at a depth of 70-90 m, lying 25 to 40 km from the coast, with almost no overburden.

ON SOCIAL RESPONSIBILITY

  • Newmont Goldcorp donates 500 COVID-19 tests in Zacatecas. The donation amounts to more than $2 M pesos.
  • Newmont Peñasquito delivered 3,000 cleansing packages, in the communities near the Peñasquito mine in Zacatecas, amidst the fight against the spread of the Coronavirus. The packages are to be delivered in and by local health institutions.

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: Hematite-goethite stained quartz vein in an orogenic gold system, Oaxaca. Picture by Jorge Cirett.

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The Mining and Exploration News in Mexico: Highlights on the Second Week of November, 2019

/ Gambusino Prospector / Leave a comment

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By Jorge Cirett

During the 46th week of the year (November 11th to November 17th, 2019), at least 23 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, mining investments in Mexico decreased from 8 billion dollars in 2018 to 5 billion dollars in 2019. Camimex held a fiscal seminar in Queretaro. Almaden Minerals published a letter on indigenous population around the Ixtaca project in Puebla. Promperú organized in Hermosillo, Sonora, a Commercial Mission of suppliers to mining in Peru. The top ten silver miners in Mexico produced 39.8 M Oz in the third quarter 2019. The mining industry in Mexico has been subject in the past few years of regulatory hurdles that are having a negative effect in investment in the sector, the last one being the decision by SEMARNAT not to authorize the MIA on the Ixtaca project in Puebla until there is a resolution on a legal suit on a piece of land no longer held by the company running the project.  ON EXPLORATION, in Sonora, Evrim updated on exploration of the El Llanito del Nogal property; Magna Gold reported assay results from four more holes at Mercedes. In Sinaloa, Vizsla Resources released high-grade results from rock channel sampling at Panuco.  ON MINING, Premier Gold, Golden Minerals, Starcore International, Americas Gold and Silver, Sierra Metals, Odyssey Marine Exploration and Fortuna Silver presented third quarter 2019 results. Consolidated Zinc and Industrias Peñoles signed an offtake agreement on zinc concentrate. ON FINANCING, Tamino Minerals informed on trading volumes. Mexican Gold received TSX approval for the listing of 50 M warrants from a previous financing. Colibri Resources entered into a loan agreement with Agnico Eagle for $300 K.  ON RESOURCES AND DEVELOPMENT, Defiance Silver is to start a two-phase technical program at San Acacio, Zacatecas. Endeavour Silver reported positive drill results on recently acquired El Curso concession within its Guanaceví property. Peñoles is to invest $70 M at its processing facilities in Torreon. SilverCrest released high-grade results from drilling at the Babi Vista vein at Las Chispas, in Sonora. Bacanora Lithium updated on project development on its Sonora project. ON DEALS AND CORPORATE ISSUES, Evrim signed an agreement with San Marco Resources to acquire the Suanse property in Sonora. Colibri Resources extended an agreement with Agnico Eagle on the disposal of Colibri’s share on the Pitaya project in Sonora.  ON SOCIAL RESPONSIBILITY. Peñoles is conducting courses for children and adults at its Torreon community center. Ternium is organizing health festivals in Nuevo Leon, Coahuila, Jalisco, Michoacan, Puebla and San Luis Potosi. Argonaut sponsored the third edition of the La Colorada race, within the pit benches at the mine in Sonora. The “Doctor Vagón”  itinerant health clinic sponsored by Grupo Mexico provided service to 550 persons in Gomez Palacio, Durango. La Brisa mining company provided cleaning equipment to the Topia community in Durango. Peñoles mining units source 35% of its energy requirements by removable sources, and expects to reach 100% by 2028.

ON MEXICO ISSUES

  • During 2019 investments in the mining sector are to reach five billion (5 mil millones) dollars, according to Francisco Quiroga, Subsecretary of Mining. That’s a decrease from the eight billion (8 mil millones) invested in 2018.
  • Camimex organized the Seminario Fiscal de la Industria Minera in Queretaro. Camimex compromise is complete on its involvement on the “mesa de diálogo” (dialogue meetings) with the federal government, where proposals to incentivize investment are to be exposed, checking on subjects like the fiscal situation, regulatory environment and security. The head of Camimex, Karen Flores, explained that on the Fraser Institute study Mexico is number 71 of 83 jurisdictions on the fiscal regime. Camimex is for the 100 percent deduction of exploration expenses, and the establishment of pacts of fiscal stability on a 15 to 20 year time frame, as is Peru, Chile and Argentina. In a comparative study, Mexico has the heaviest fiscal load among peers like the US (Arizona), Canada (Ontario), Peru and Chile.
  • Minera Gorrión (Almaden) published a letter on indigenous population around the Ixtaca project in Puebla. Although indigenous persons inhabit the area, there is not such an indigenous community within the area of influence of the project. The company stresses the misinformation produced by some activists groups with total impunity, and reaffirms its confidence on institutions and the rule of law.
  • Promperú organized in Hermosillo, Sonora, its II Commercial Mission of Suppliers to Mining in Peru. Several conferences were presented by members of the mining communities and governments of both countries.
  • The top 10 silver mining companies in Mexico had a solid third quarter. During the period these companies produced 39.8 M Oz, compared with 39.0 M Oz produced on the same quarter a year ago. The top producer is Industrias Peñoles, with 15.3 M Oz almost 40% of that amount and 2.2 M Oz less than the same quarter 2018 (Fresnillo, Saucito, San julian, Sabinas). Newmont was the second largest producer with 7.4 M Oz produced at Peñasquito. Other large producers comprise Southern Copper with 3.9 M Oz (undisclosed units), Pan American with 3.6 M Oz (La Colorada), First Majestic (Santa Elena, San Dimas, among others), Coeur Mining with 1.7 M Oz (Palmarejo), Fortuna Silver with 1.7 M Oz Ag (San José), Minera Frisco 1.1 M Oz (El Coronel, San Felipe, Tayahua, San Francisco del Oro, Concheño and Ocampo), Endeavour Silver 900 K Oz (El Cubo, Bolañitos, Guanceví, and El Compás) and Agnico Eagle 800 K Oz (Pinos Altos).
  • Alberto Aguilar, a respected columnist in business circles, elaborated on the hurdles the mining industry is going through with the current federal administration (it fell 3.7% on the third quarter, 2019). Among the issues mentioned is the contraction in mineral production as a result of the imposition of new taxes on mining in 2014, the investment of only 5 billion dollars in 2019 (8 billion in 2018), no concessions have been granted in 2019 and the recurrent illegal blockades without sign of easing. The latest hurdle thrown at the industry is the resolution by SEMARNAT (the Mexican environmental agency) that the Manifestation on Environmental Impact (MIA) for the Ixtaca project in Puebla was not to be granted until a legal suit on a claim no longer held by Minera Gorrion (Almaden Minerals) reaches a resolution. Exploration expenses so far have been $40 M dollars and another $117 M are still to be spent, along with $1.1 B (One billion) to be invested in eleven years (GPM Note.- The head of SEMARNAT, Victor Toledo, is known for its public and vocal anti-mining stance).

ON EXPLORATION

  • Vizsla Resources Corp. released high-grade channel sampling at its Panuco property in Sinaloa. The sampling locations are widespread within the property and the highlighted results comprise: 0.9 m @ 1,860 gpt Ag, 14.55 gpt Au at the Napoleon vein; 0.5 m @ 1,900 gpt Ag, 29.30 gpt Au at the San Antonio-Cordon de Oro vein; 3.6 m @ 691 gpt Ag, 7.00 gpt Au at the San Carlos-Animas vein; 5.95 m @ 584 gpt Ag, 3.97 gpt Au. Veins in the project have lengths of up to 2.8 km, with known ore shoots of up to 500 m in length.
  • Evrim Resources Corp. updated the description on its El Llanito del Nogal property in Sonora. The Suanse porphyry target, is a 1 Km by 600 m area of propylitic to potassic alteration. Soil sampling outlined a 600 m by 500 m Cu anomaly (>100 ppm) in areas of sheeted quartz-chalcopyrite-chlorite-magnetite veins. A ground magnetic survey outlined a donut-shaped anomaly 400 m in diameter and roughly coincident with the soil anomaly. The soil and magnetic anomalies extend northward onto the Suanse claim (see deals section below) where strong argillic, advanced argillic along with vuggy and massive quartz alteration are interpreted as a partially eroded lithocap.
  • Magna Gold Corp. reported assay results on the last four RC holes drilled at the La Lamosa target on its Mercedes project in Sonora. Highlighted intervals comprise: 38.10 m @ 0.67 gpt Au, 13.2 gpt Ag (including 6.10 m @ 1.43 gpt Au, 42.9 gpt Ag); 28.96 m @ 0.76 gpt Au, 8.9 gpt Ag (including 7.62 m @ 1.06 gpt Au, 9.3 gpt Ag); 21.34 m @ 1.61 gpt Au, 2.2 gpt Ag (including 3.05 m @ 6.99 gpt Au, 3.9 gpt Ag); 21.34 m @ 1.21 gpt Au, 11.8 gpt Ag (including 3.05 m @ 4.26 gpt Au). Other targets to follow up include the 600 m long La Lamosa East projection, the Mina de Oro 300 m by 150 m silicified/argillized andesite and rhyodacite, the Salto Colorado breccia 400 m by 150 m in size and Noche Buena, forming a prominent ridge in a 900 m by 800 m area with tourmaline breccias.

ON MINING

  • Premier Gold Mines Ltd. Reported operating results for the third quarter 2019, including figures from its operations in Mexico. At Mercedes, in Sonora, 159.4 K tonnes were milled @ 2.94 gpt Au, 22.6 gpt Ag, recovering 95.9% Au, 32.3% Ag to produce 14,481 Oz Au, 37.5 K Oz Ag at co-product cash cost $1,095 per Oz Au, and co-product AISC $1,354 Oz Au.
  • Golden Minerals Co. announced financial results for the third quarter 2019. The company had revenue of US$1.9 M and a net operating margin of $1.3 M related to the lease of the Velardeña oxide plant to Hecla Mining Co.. By the end of the period the company had cash and cash equivalents of $2.9 M. During October an agreement was achieved with Magellan Gold Corp. to option a 100% interest in the Santa Maria and Las Marias exploration properties in Chihuahua.
  • Consolidated Zinc Ltd. signed and offtake agreement with Industrias Peñoles S.A. de C.V. for zinc concentrate produced from the Plomosas mine to December 2020, with an option to be extended for a further two years.
  • Starcore International Mines Ltd. released production results from its San Martin mine in Queretaro for the three months ended on October 31, 2019. During the period 54.1 K tonnes were milled @ 1.78 gpt Au, 34.2 gpt Ag, with a recovery of 87.35% Au, 52.27% Ag to produce 3,050 Oz AuEq.
  • Americas Gold and Silver Corp. reported consolidated and operational results for Q3 2019, with undisclosed figures from its Mexican operations (Cosalá, Sinaloa).
  • Sierra Metals Inc. reported third quarter 2019 results, including information from its Mexican operations. The company is approaching is production target of 4,250 tpd at Bolivar and 1,200 tpd at Cusi, both in Chihuahua. Bolivar’s cash cost per CuEq Lb was $1.40, and the AISC $2.53. Cusi’s cash cost was $18.77 and AISC $24.60. During the period 9,923 m were drilled from the surface at Bolivar, and 3,220 m within the Cusi mine. At the end of the period cash and cash equivalents were $40.1 M, with a net debt of $50.9 M.
  • Odyssey Marine Exploration Inc. reported results for the third quarter 2019. Net loss for the period was $4.2 M due to several non-recurring items (Exploraciones Oceánicas project, Baja California Sur).
  • Fortuna Silver Mines Inc. reported third quarter results for 2019, including figures from its Mexican operations. At San José, in Oaxaca, 268 K tonnes were milled at a rate of 3,046 tpd and a grade of 219 gpt Ag, 1.40 gpt Au, recovering 91% Ag, 91% Au to produce 1.7 M Oz Ag and 10,942 Oz Au at cash cost $7.70 per Oz AgEq and an AISC of $10.80 per Oz AgEq.

ON FINANCING

  • Tamino Minerals Inc. informed that during the third week of September the company traded 145 M shares with a volume of US $1.1 M and a price per share appreciation of US$0.01” (El Volcan, Sonora).
  • Mexican Gold Corp. has received TSX Venture Exchange approval for the listing of 50 M warrants from the non-brokered private placement announced in past July.
  • Colibri Resource Corp. has entered into a loan agreement with Agnico Eagle Mines Ltd. For proceeds of US$300 K. The loan has a 2 year term at a 10% interest rate and proceeds are to be used on the Evelyin project in Sonora.

ON RESOURCES AND DEVELOPMENT

  • Defiance Silver Corp. is to start a two-phase technical program at its San Acacio property in Zacatecas. The program envisages evaluating the San Acacio resource at depth and brownfield targets on the Veta Grande system.
  • Endeavour Silver Corp. reported positive initial drill results for El Curso property, adjacent to Endeavour’s Guanaceví mine in Durango. The property includes the Santacruz vein, which is between two Endeavour’s developments. Drilling highlights comprise true width (tw) intervals: 5.2 m @ 0.75 gpt Au, 465 gpt Ag; 2.6 m @ 1.23 gpt Au, 558 gpt Ag; 2.1 m @ 2.51 gpt Au, 935 gpt Ag; 2.5 m @ 0.40 gpt Au, 204 gpt Ag; 5.1 m @ 3.07 gpt Au, 1,182 gpt Ag (including 0.5 m @ 15.22 gpt Au, 5,372 gpt Ag); 4.3 m @ 2.2 gpt Au, 1,021 gpt Ag; 2.7 m @ 1.37 gpt Au, 355 gpt Ag; 6.2 m @ 1.70 gpt Au, 635 gpt Ag.
  • Industrias Peñoles S.A.B de C.V. is to invest US$70 M in its Met-Mex installations (in Torreon, Coahuila) to better the silver recovery in zinc concentrates. In 2018, the company commissioned a US$327 M modification on the plant that avoids the generation of additional sulphuric acid by direct concentrate leaching instead of roasting, augmenting the capacity from 240 K to 360 K tonnes of zinc.
  • SilverCrest Metals Inc. announced expansion drill results from the Babi Vista vein in the Babicanora area of the Las Chispas project in Sonora. The highlighted true width (tw) intervals from these 17 holes comprise: 2.3 m @ 2.27 gpt Au, 215 gpt Ag; 0.4 m @ 3.55 gpt Au, 385 gpt Ag; 0.9 m @ 4.86 gpt Au, 600 gpt Ag; 0.4 m @ 1.10 gpt Au, 187 gpt Ag; 0.6 m @ 1.09 gpt Au, 92 gpt Ag; 2.0 m @ 1.84 gpt Au, 433 gpt Au, 1.2 m @ 2.56 gpt Au, 296 gpt Ag; 8.8 m @ 7.36 gpt Au, 584 gpt Ag (including 0.3 m @ 120.50 gpt Au, 9,510 gpt Ag; 0.7 m @ 18.15 gpt Au, 1,495 gpt Ag); 6.6 m @ 3.37 gpt Au, 250 gpt Ag (including 0.4 m @ 32.70 gpt Au, 2,940 gpt Ag). So far the high-grade footprint is 150 m along the strike of the vein and 200 m to depth, open in most directions, averaging 2.2 m @ 4.70 gpt Au, 401 gpt Ag.
  • Bacanora Lithium plc. updated on project activities at its Sonora Lithium project. Final design work for the mine site, infrastructure, concentrator and kiln sections of the processing plant is in progress. Detailed engineering plans for the design of the front-end concentrator and mechanical processing is underway, as well as the pyrometallurgical engineering, while the hydrometallurgical plant, including the production of the final battery grade lithium product will be engineered by Ganfeng.

ON DEALS AND CORPORATE ISSUES

  • Evrim Resources Corp. signed an agreement with San Marco Resources to acquire the Suanse property in Sonora. The 1,115 hectares property is within Evrim’s Llano del Nogal claim. Evrim can acquire 100% interest in the project by making total cash payments of $75 K and granting San Marco a 1% royalty half of which can be repurchased for $1 M. Cash payments are: $25 K on signing, $25 K on signing a JV or partnership with third parties and $25 K upon completion of 1,000 m of drilling.
  • Colibri Resource Corp. granted a two-year extension to its agreement with Agnico Eagle Mines Ltd., allowing Agnico to exclusively explore opportunities to dispose of Colibri’s working interest in its JV on the 5,564 hectares Pitaya project in Sonora.

ON SOCIAL RESPONSIBILITY

  • The Peñoles Community Center (Centro Comunitario Peñoles) in Torreon, Coahuila, is conducting courses for children and adults, including English, music, drawing, tae kwon do, tae chi and modern dance and dance for weight reduction.
  • Ternium organizes the Health Festivals (Ferias de La Salud) in Nuevo Leon, Coahuila, Colima, Jalisco, Michoacan, Puebla and San Luis Potosi, in coordination with several organizations and government institutions. Each year almost 6,000 persons receive this benefit, including cost-free diverse medical examinations (like sight, Papanicolau, mamographies) and flu shots.
  • The La Colorada race was held in Sonora for the third time. The race sponsored by Argonaut Gold was attended by hundreds of runners on the benches of La Colorada mine.
  • The technical school Roberto Rocca (partly supported by Ternium) is to represent Mexico in the World’s Educative Robotics Tournament, to be held in Shanghai, China.
  • The “Doctor Vagón” program sponsored by the Grupo Mexico Foundation (a train adapted for medical services) was four days at Gomez Palacio, Durango, with the aid of the local municipality. During that time 2,200 services were provided to the 550 persons that registered to the effect.
  • In Topia, Durango, Minera La Brisa supported the municipality providing cleaning equipment.
  • Industrias Mineras Peñoles announced that to 2018 up to 35% of the energy requirements at its mining units is fulfilled by renewable energy sources. The company is striving to reach at least a 50% in 2020 and to be completely reliant on renewable energy sources by 2028.

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: Gold recovered by artisanal methods from orogenic style quartz veins in Oaxaca.. Picture by Jorge Cirett.

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The Mining and Exploration News in Mexico: Highlights on the Third Week of September, 2019

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During the 38th week of the year (September 16th to September 22nd, 2019), at least 20 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, Peñasquito in Zacatecas is again victim of an illegal blockade, operations are suspended by Newmont Goldcorp. ON EXPLORATION, in Zacatecas, Advance Gold is to carry a second phase geophysical survey on its Tabasquena project. in Jalisco, Silver Spruce announced the approval of the permits for drilling Cocula. In Hidalgo, Prospero Silver informed on drilling results from its Pachuca SE project. ON MINING, a renewed illegal blockade strikes Newmont Goldcorp’s Peñaquito mine, in Zacatecas. Starcore released first quarter 2019 results. Consolidated Zinc filed first semester 2019 results. Mexus Gold realized the first gold sale from it Santa Elena mine in Sonora. ON FINANCING, Newmont Goldcorp completed a senior notes offering for $690 M. San Marco Resources is consolidating its share base on a 3 to 1 basis. Defiance Silver is settling a debt by issuing shares. Sierra Metals amended the number of shares to re-purchase. VVC Exploration extends the closing of its private placement financing for up to CA$2.5 M. Galore Resources announced the extension of the current non-brokered private placement intended to raise $1.5 M. ON RESOURCES AND DEVELOPMENT, Leagold commenced a large multi-year exploration program on eight linear kilometres of the southern portion of the Bermejal intrusive stock. ON DEALS AND CORPORATE ISSUES, Azure Minerals won a dispute on the recovery of a significant amount of VAT. Silver Spruce is to continue the due diligence on the Cocula project in Jalisco. Magna Gold completed the acquisition of Las Marias and Las Cabañas properties, adjacent the former and 10 km SW the latter from its Mercedes project in Sonora. ON SOCIAL RESPONSIBILITY. Alamos Gold received an award on community responsibility by three organizations for work on the Mulatos community, in Sonora.

ON MEXICO ISSUES

  • A new illegal blockade on Peñasquito, Zacatecas, forces Newmont Goldcorp to suspend operations. The blockade that was set on September 14, 2019, is backed by the Zacatecan senator José Narro, from the ruling party Morena.

ON EXPLORATION

  • Silver Spruce Resources Inc. announced the approval of the Informe Preventivo on  the Cocula project in Jalisco, which is the environmental application required for drilling. The permit allows for 47 drill sites over the 750 m strike length of the known mineralised area.
  • Advance Gold Corp. informed that a second phase geophysical survey will be carried out at its Tabasquena project in Zacatecas. The first phase 3D induced polarisation survey identified a “a significant continuous chargeability anomaly, with an east-west width of approximately 250 metres and an apparent strike length of over 800 metres” directly below the Tabasquena vein, which saw previous production under the company Peñoles.
  • Prospero Silver Corp. posted results from holes drilled in 2019 on its Pachuca SE project, funded by partner Fortuna Silver Mines Inc. The 5,933 m diamond drilling in eight holes produced highlighted intervals of 0.78 m @ 0.02 gpt Au, 83 gpt Ag; 1.50 m @ 0.28 gpt Au, 46 gpt Ag; 0.40 m @ 0.49 gpt Au, 23 gpt Ag; 0.35 m @ 1.69 gpt Au, 675 gpt Ag; 1.80 m @ 0.58 gpt Au, 144 gpt Ag. Prospero suggests this indicates a district wide preserved epithermal mineralized zone, with fluid inclusion and mineralogical data pointing to the top of the mineralised zone 200 m below the actual surface, and the paleo-water table 100 m above the top of the Varal ridge.

ON MINING

  • Newmont Goldcorp Corp. Informed “that the dialogue sponsored by the government of Mexico to resolve issues with a trucking contractor and the San Juan de Cedros community (one of Peñasquito’s 25 neighboring communities) has been suspended and that an illegal blockade has resumed”. The company has enhanced water availability to neighbouring communities through a number of projects over the years, and proposed several additional measures for the communities in general and for San Juan de Cedros in particular, on the most recent government sponsored talks with the protesters.
  • Starcore International Mines Ltd. filed the results for the first quarter, ended July 31, 2019. During the period the company milled 60.8 K tonnes @ 1.99 gpt Au, 31.7 gpt Ag, recovering 85.1% Au, 58.4% Ag, to produce 3,711 Oz AuEq at its San Martin mine in Queretaro. The mine operating cash cost was US$1,234 per AuEq Oz and the AISC US$1,452 per AuEq Oz.
  • Mexus Gold US. sold its first gold, produced at its Santa Elena mine in Sonora (not to mistake for First Majestic’s Santa Elena mine, also in Sonora).
  • Consolidated Zinc Ltd. released its first semester 2019 interim report. During the period 27.1 K tonnes of ore @ 13.1% Zn, 4.1%Pb were mined from its Plomosas mine in Chihuahua, while extracting also 14 K tonnes of waste and driving 1,192 m of underground development. By the end of the period the company had total assets of US$4.3 M, total liabilities for US$5.2 M and total cash US$0.2 M, with US$2.1 M of debt.

ON FINANCING

  • Newmont Goldcorp Corp. closed a senior notes offering at 2.8% netting $690 M of gross proceeds. The Company intends to use the net proceeds of this offering for repayment of the outstanding 5.125% senior notes due October 1, 2019 (Peñasquito, Zacatecas).
  • San Marco Resources Inc. is consolidating its shares on a 3 to 1 basis. Once the consolidation process is complete, the company will have 22.6 M issued and outstanding shares (Chunibas, Sonora).
  • Defiance Silver Corp. intends to settle up to $150 K of debt issuing up to 535 K common shares. The issuance of the shares is subject to approval by the TSX, as some of the creditors are insiders of the company, and the settlement is considered a related party transaction (San Acacio, Zacatecas).
  • Sierra Metals Inc. announced an amendment to the number of shares the company can repurchase, from 1.5 M to 2.5 M shares, or approximately 1.54% of the issued and outstanding shares of the company (Bolivar, Chihuahua).
  • VVC Exploration Corp. announces the extended closing of its private placement financing under which expects to accrue up to CA$2.5 M. A finder’s fee not exceeding 7% of the aggregate amount raised is to be paid. In conjunction with the private placement, VVC also will be converting up to $200 K of its indebtedness to units of the company (Kaity, Chihuahua).
  • Galore Resources Inc. announced that the previously announced non-brokered private placement financing intended to raise up to $1.5 M has been extended under conditional acceptance by the TSX, as the company is continuing to collect subscriptions from investors. The company plans to submit documentation and announce a closing on a first tranche of the financing in the next few days, before following up on completing and closing on a second tranche in the next 30 days (El Alamo, Zacatecas).

ON RESOURCES AND DEVELOPMENT

  • Leagold Mining Corp. commenced a large multi-year exploration program on the southern portion of the Bermejal intrusive at its Los Filos mine complex in Mexico. Eight linear kilometres of favourable contacts between the intrusive and the hosting sedimentary rocks are to be explored, compared with the already explored four linear kilometres that have yielded past production and actual resources reaching 6 M Oz Au on the Bermejal intrusion. The first phase will include surface geochemistry, geophysics, mapping, trenching and up to 10,000 m of drilling in 48 holes. Known prospects of interest include El Carmen, where up to 14.5 m @ 8.1 gpt Au and 12.8 m @ 12.8 gpt Au.

ON DEALS AND CORPORATE ISSUES

  • Azure Minerals Ltd. announced a dispute over the recovery of IVA (Mexican equivalent to GST) has been finalised with the Mexican authorities, resulting in the payment of Mx$10.33 M or AU$767 K. This payment results from a court ruling over IVA paid in 2016, reimbursed with interests (Mesa de Plata, Sonora).
  • Silver Spruce Resources Inc. announced its intention to continue the due diligence to support a definitive purchase decision of the Cocula project in Jalisco, subject to its binding letter of agreement with ProDeMin S.A. de C.V.
  • Magna Gold Corp. announced that it has completed the acquisition of the Las Marias property and Las Cabañas mineral claim in Sonora. Las Marias property consists of seven mining concessions covering 646 ha adjacent to the Mercedes property, and Las Cabañas consists of two claims covering 248 ha approximately 10 km SW of the Mercedes property. The total purchase price for the new mineral concessions and other rights was $250 K and the issuance of 1 M common shares.

ON SOCIAL RESPONSIBILITY

  • Alamos Gold Inc. was named the Best Corporate Social Responsibility Practice 2019 in the category of Connecting with the Community. The award was bestowed by the Mexican Center for Philanthropy (Cemefi), the Alliance for Corporate Social Responsibility in Mexico (AliaRSE), and Forum Empresa (Mulatos, Sonora).

 

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

On the image below: Strong iron oxides on a quartz vein from an orogenic gold project in Oaxaca. Picture by Jorge Cirett.

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The Mining and Exploration News in Mexico: Highlights on the Second Week of June, 2019

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IMG_1079 - copia

By Jorge Cirett

During the 26th week of the year (June 24th to June 30th, 2019), at least 43 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, a resolution by the Supreme Court is awaited to learn how the Mining Fund resources are to be allocated, if for social and environmental infrastructure (as planned) or as direct allocations to the people of the communities, the preferred method of the president (a method the opposition denounces as vote buying). In Sonora a local congressman introduced a bill for a new state tax on dirt extracted from open pits, a measure that if implemented is to pose a further weight in the already heavy fiscal load for mining companies in Mexico. Furthermore, the Economy Secretariat (Secretaria de Economia) published a letter stating that the “Protocol of Good Practice of Mining for the Public Consultation” (Protocolo de buenas practicas de la Minería para la consulta pública) is under review by the agency. It is not possible to underrate the importance of the review of this protocol, because if it is implemented incorrectly the result would impact fast and catastrophically the Mexican exploration industry. One of the more pressing issues is the fact that placing the consultation process before exploration takes place, would end most exploration in one swipe. If in doubt, just take a look to Oaxaca, where, although not being in the law you have to make the community consultation process before exploring, and the result is that hardly any exploration work is nowadays conducted in one of the states with the best mineralization potential in Mexico. Trust is hard to earn, let’s not throw it away so carelessly. ON EXPLORATION, In Zacatecas, Galore continues to drill at Dos Santos; Alien Metals updated on its exploration of Donovan 2 and Los Campos. ON MINING, Alien Metals released its financial results for 2018. ON FINANCING, Santacruz signed an agreement to extend the payment of a US$2.3 M loan. Galore is making a $1.5 M financing. Goldplay closed an oversubscribed financing for $1.37 M. Leagold completed a debt refinancing for a $200 M term loan and a $200 M revolving credit facility. ePower intends to conduct a private placement for Cdn$6 M. Sable granted 2.8 M incentive stock options. Alien Metals raised £350 K.  ON RESOURCES AND DEVELOPMENT, Mexus Gold  is to start leaching at Santa Elena, in Sonora. Telson reported significant underground channel sample results at Tahuehueto. Orla presented the result of the FS on Camino Rojo. Premier Gold presented results of its 42,000 m drilling campaign at Mercedes. Southern Silver file a technical report with updated resources on Cerro Las Minas. Santacruz presented results of drilling at Veta Grande. GoGold released results of drilling at Los Ricos. SilverCrest informed the decline has intersected the Babicanora vein at Las Chispas. Minera Alamos informed on the permitting of Santana. Almaden updated on permitting and legal issues at its Ixtaca project in Puebla. ON DEALS AND CORPORATE ISSUES, Millrock sold its Sonoran portfolio to Riverside. ePower Metals entered into a definitive agreement with Minera Alamos to acquire the Los Reyes project in Sinaloa. Silver Viper renegotiated much better terms on the lease of two properties within its La Virgina project in Sonora. Golden Minerals entered into an agreement under which Minera Autlan is to buy its Velardeña properties. Bacanora Lithoum signed an investment agreement and an offtake agreement with Ganfeng Lithium on its Sonora lithium project. Canasil and Pan American agreed on terms for the acquisition of Pan American of the Sandra Escobar project in Durango.

ON MEXICO ISSUES

  • The Economy Secretariat is awaiting the resolution of the Supreme Court on the change of rules to apply the Mining Fund, which this year is anticipated to be amounting to 3.2 billion pesos (3,200 millones) or approximately US$168.4 M. The proposal by the present Federal government (ie.- the president) is to deliver the resources directly to the people to “augment the capacities” of the mining communities. The aim would be to organize the community and the service providers to be part of the service chain for the mining industry. The resources on the Mining Fund to date are to be funneled according with the current rules, until a resolution by the Supreme Court clarifies the issue.
  • In Sonora, local congressman Carlos Navarrete from the Encuentro Social party (allied to the Morena party) introduced a bill for a new State tax on dirt extracted from open pits (includes waste, sand, dimension stone, clays, limestone, lime, among others). The US$0.63 tax per cubic metre of material would be split 80/20 between the municipalities and the State. The resources would be utilized in physical investments and infrastructure with social impact, in the environment and urban development (The bill intends to use the resources thus gathered in the same way that those of the Mining Fund were supposed to be used, and for which a 7% federal royalty tax was imposed on mining a few years ago. Now that the current president Andrés Manuel Lopez Obrador intends to use the resources of the Mining Fund for his preferred programs, allied politicians are trying to make the mining industry pay even more taxes).
  • The Economy Secretariat published a letter on the “Protocol of Good Practice of Mining for the Public Consultation”. In the letter the Economy Secretariat states that the protocol is under review by the agency. On the Letter: The consultation process is to be applied to all communities that can be impacted by the mining activity. Also, both exploration and exploitation should be consulted before their realization. The responsible authority is to be the Economy Secretariat, with aid by the Instituto Nacional de los Pueblos Indigenas and other authorities (SEMARNAT, CONAGUA, CFE, local municipal and state governments), as well as the state and federal Human Rights Commissions.

ON EXPLORATION

  • Galore Resources Inc. informed its 2,500 m diamond core drilling program at the El Alamo target of its Dos Santos project in Zacatecas continues to progress well. The first hole “intersected multiple zones of alteration and brecciation …… silicified and brecciated limestone similar to those observed on the surface over a much wider zone than was anticipated”.
  • Alien Metals Ltd. updated on its exploration activities at its Zacatecas properties Donovan 2, Los Campos and Don Celso. Sampling and mapping at Donovan 2 has resulted in high grade mineralisation in historic workings open along strike, and channel sample assays of up to 1.15% Cu and float samples of up to 0.45 gpt Au. Planned work includes a ground induced polarisation (IP) geophysical survey before the first phase of drilling. Surface mapping and sampling will be undertaken at Los Campos and Don Celso properties, as well as underground sampling and a geophysical survey at Los Campos.

ON MINING

  • Alien Metals Ltd. released its audited financial results for 2018. The company owns the Donovan 2, Los Campos, San Celso and La Africana projects in Zacatecas. The company held US$0.7 M in cash and cash equivalents by the end of the period.

ON FINANCING

  • Santacruz Silver Mining Ltd. reached an agreement to amend the repayment terms of the US$2.3 M short-term loan that it has borrowed from a private Bolivian mining company. The principal balance of US$2.3 million is now to be repaid by January 30, 2020. As consideration for the extension on the date of repayment Santacruz is to increase the issue of 2 M warrants to 2.5 M warrants (Veta Grande, Zacatecas).
  • Galore Resources Inc. is to commence a non-brokered private placement to raise gross proceeds of up to $1.5 M (Dos Santos, Zacatecas).
  • Goldplay Exploration Ltd. closed its over-subscribed previously announced financing, for gross proceeds of $1.37 M. A total of $28.9 K was paid and 231 K warrants were issued as a finder’s fee payment (San Marcial, Sinaloa).
  • Leagold Mining Corp. completed the debt refinancing with a syndicate of lenders that includes a $200 million term loan and a $200 million revolving credit facility. These loans have been used to replace $238 million of existing short-term debt, and will aid in the development of the Bermejal underground complex, the Guadalupe open pit and the CIL plant construction at it Los Filos mine in Guerrero.
  • ePower Metals Inc. intends to conduct a non-brokered private placement to raise up to Cdn$6 M (Los Reyes, Sinaloa).
  • Sable Resources Ltd. granted 2.8 M incentive stock options to certain officers, directors, employees and consultants of the company. Such options are exercisable at a price of $0.15 for a period of five years (Margarita and Vinata, Chihuahua).
  • Alien Metals Ltd. raised £350 K through the placement of shares (Donovan 2, Los Campos, Zacatecas).

ON RESOURCES AND DEVELOPMENT

  • Mexus Gold US. is to start leaching at its Santa Elena mine in Sonora (not to mistake for First Majestic’s Santa Elena mine, also in Sonora). Leaching is programmed to start on June 27th, with ore grading 1.8 gpt Au, 8 gpt Ag, to later on add ore @ 4 gpt Au, 12 gpt Ag. By September the company expects to be mining 3,500 tonnes per week.
  • Telson Mining Corp. reported significant channel sample assay results for underground mine development at its Tahuehueto project in Durango, where a 1,000 tonne per day mine is under construction. Highlighted results include: 2.42 m @ 5.76 gpt Au, 129 gpt Ag, 1.44% Cu, 3.8% Pb, 6.2% Zn; 5.50 m @ 3.31 gpt Au, 57 gpt Ag, 0.32% Cu, 0.9% Pb, 3.5% Zn; 5.38 m @ 4.41 gpt Au, 44 gpt Ag, 0.38% Cu, 1.5% Pb, 3.6% Zn; 7.0 m @ 5.12 gpt Au, 40 gpt Ag, 0.29% Cu, 1.0% Pb, 3.2% Zn; 6.45 m @ 5.69 gpt Au, 51 gpt Ag, 0.21% Cu, 2.3% Pb, 5.6% Zn; 4.42 m @ 8.70 gpt Au, 59 gpt Ag, 0.18% Cu, 1.7% Pb, 2.2% Zn; 4.08 m @ 9.27 gpt Au, 69 gpt Ag, 0.19% Cu, 0.6% Pb, 1.0% Zn; 3.56 m @ 7.95 gpt Au, 76 gpt Ag, 0.25% Cu, 3.3% Pb, 4.6% Zn. Individual assays are often above 5 gpt Au, and up to 28 gpt Au.
  • Orla Mining Ltd. presented the results of a feasibility study on its Camino Rojo Oxide project in Zacatecas. The main points include 18 K tonnes per day operation, with 44 M tonnes of ore to be put on the leach pad @ 0.73 gpt Au, 14.2 gpt Ag, containing 1 M Oz Au, 20.1 M Oz Ag. The expected recovery is 64% Au, 17% Ag, with an annual gold production of 97 K Oz Au at by-product cash cost $515 per Au Oz and an AISC of $576 per Au Oz. The after tax net present value (5%) is $142 M, with an after tax internal rate of return of 28.7% and a payback period of three years, all this in the case scenario of $1,250 per Au Oz price. The proven and probable mineral reserves stand at 44 M tonnes @ 0.73 gpt Au, 14.4 gpt Ag, whereas the measured and indicated resources amount to 353.4 M tonnes @ 0.83 gpt Au, 8.8 gpt Ag, containing 9.46 M Oz Au, 100.4 M Oz Ag. Inferred mineral resources are 60.9 M tonnes @ 0.87 gpt Au, 7.4 gpt Ag, containing 1.70 M Oz Au, 14.5 M Oz Ag.
  • Premier Gold Mines Ltd. presented exploration results of its 42,000 m drilling program at its Mercedes mine in Sonora. New mineralised veins have been confirmed at San Martin, opening the area 600 m to the west of the Lupita deposit. Drilling at San Martin returned multiple intercepts, including 7.2 m @ 4.64 gpt Au, 30 gpt Ag; 1.4 m @ 5.56 gpt Au, 38 gpt Ag. Ongoing delineation at Lupita includes intercepts of 3.9 m @ 10.3 gpt Au, 88 gpt Ag and 1.5 m @ 23.9 gpt Au, 71 gpt Ag. Exploration is to be activated at La Mesa area, adjacent to Agnico Eagle’s Santa Gertrudis project.
  • Southern Silver Corp. filed a NI-43-101 report with an updated mineral resource estimate for its Cerro Las Minas project in Durango (previously disclosed). The indicated resources amount to 11.1 M tonnes @ 105 gpt Ag, 0.1 gpt Au, 0.16% Cu, 1.2% Pb, 3.7% Zn, containing 37.5 M OZ Ag, 35 K Oz Au, 40 M Lb Cu, 303 M Lb Pb, 897 Lb Zn, Inferred mineral resources comprise 12.8 Mt @ 111 gpt Ag, 0.07 gpt Au, 0.27% Cu, 0.9% Pb, 2.8% Zn, containing 45.7 M Oz Ag, 31 K Oz Au, 76 M Lb Cu, 253 M Lb Pb, 796 M Lb Zn. “The overall objective of the 2019-20 exploration program is to continue to increase the existing resource base and to identify and drill test new epithermal vein systems within the larger claim package.”
  • Santacruz Silver Mining Ltd. released results from phase 1 of the current drilling program on the Veta Grande, Armados and Navidad veins on its Veta Grande project in Zacatecas. Highlighted true width intercepts comprise 0.55 m @ 761 gpt Ag, 0.2 gpt Au, 0.86% Pb, 1.84% Zn, 0.04% Cu; 1.94 m @ 65 gpt Ag, 0.75 gpt Au, 1.23% Pb, 3.84% Zn, 0.03% Cu at the Navidad vein; 2.40 m @ 227 gpt Ag, 0.88 gpt Au, 2.71% Pb, 2.64% Zn, 0.19% Cu; 1.59 m @ 280 gpt Ag, 0.61 gpt Au, 3.60% Pb, 3.24% Zn, 0.22% Cu.
  • GoGold Resources Inc. released results from two more diamond drill holes at its Los Ricos property in Jalisco. Highlighted intervals comprise 5.0 m @ 0.52 gpt Au, 161 gpt Ag; 6.3 m @ 2.14 gpt Au, 337 gpt Ag and 32.0 m @ 0.80 gpt Au, 179 gpt Ag, including 11.3 m @ 1.46 gpt Au, 348 gpt Ag. The 10,000 m HQ diamond drill program “is focused on defining the mineralized halo around the historical high grade ore shoots as defined by the underground workings and the 65 historical RC drill holes on the property”.
  • SilverCrest Metals Inc. informed the decline has intersected the Babicanora vein at the Las Chispas project in Sonora. The decline intersected the Babicanora vein and the newly identified Baby Vista vein, the first with 3.6 m true width and the second with 1.5 m true width. Additional highlighted infill results of the area 51 of the Babicanora vein include 7.6 m @ 26.6 gpt Au, 2,676 gpt Ag; 3.5 m @ 32 gpt Au, 3,417 gpt Ag; 5.6 m @ 13.6 gpt Au, 1,154 gpt Ag. The 51 in-fill drill holes totaling 18,488 m reported in this news release were “generally targeting mineralization on the outer edges of the current block model” have a weighted average true width of 2.2 m @ 7.17 gpt Au, 753 gpt Ag. An additional 40,000 to 50,000 m of infill and expansion drilling with 15 drill rigs on site focused on expanding mineralization and improving resource confidence. To date over 203,000 m of drilling have been sunk in the property. Ongoing work includes the Feasibility study expected in H1, 2020 development of the Babicanora Vein in Area 51 zone, stockpiling of high-grade material, an extensive metallurgical test program, geotechnical work and permitting for project development.
  • Minera Alamos Inc. received notification by SEMARNAT (Mexican environmental agency) confirming the successful completion of the technical review phase of the application (Estudio Tecnico Justificativo – “ETJ”) for the change of land use to allow the construction of mining and processing facilities at the Santana project area in Sonora. Phase 2 exploration will continue on the coming months, focusing to “demonstrate the potential of the project to host multiple “Nicho-style” mineralized systems that could be combined to supply feed material for an expanded regional production facility”.
  • Almaden Minerals Ltd. current focus at its Ixtaca property in Puebla relates to permitting and financing activities. “Review by Mexican authorities of Almaden’s environmental permit application (Manifestación de Impacto Ambiental, or “MIA”) continues in the normal course, and recently SEMARNAT, Mexico’s environmental authority, completed its public information meeting in the town of Santa Maria”. Almaden is engaged with several potential financing parties to secure funds for the development of the project. Regarding a decision by a lower court in Puebla State concerning Mexico’s mineral title system, Mexico’s Federal Congress, Senate, and Ministry of the Economy each filed appeals against the decision, as well as Almaden.

ON DEALS AND CORPORATE ISSUES

  • Ridgestone Mining Inc. entered into an agreement to acquire 100% interest in ten mining concessions adjacent to its Rebeico project in Sonora. The concessions cover 3,292 ha west of the Ridgestone claims, in an area with “numerous artisanal workings and mineralized outcrops”. Ridgestone has to make a $83 K payment and issue 5 M shares to the vendor.
  • Millrock Resources Inc. entered into an agreement to sell the La Union, Los Cuarentas, El Pima, El Valle and Llano del Nogal claim blocks to Riverside Resources Inc. The Santa Rosalia option from the Los Cuarenta project will also be transferred. The deal, that includes a geological database and exploration equipment, involves Riverside paying $35 K and issuing 150 K shares to Millrock, as well as a 0.5% net smelter royalty (NSR) on the El Pima and El Valle claims, and in the Santa Rosalia option.
  • ePower Metals Inc. entered into a definitive agreement with Minera Alamos Inc. and Vista Gold Corp. under which ePower has the right to earn 100% interest in the Los Reyes project in Sinaloa. In connection with the Transaction, the Company intends to change its name to “Prime Mining Corp.”, and will focus its resources on the immediate development of Los Reyes. ePower has to complete a $1.5 M cash payment to Minera Alamos, and assume the remaining option payments to Vista Gold of US$1.5 M on October 2019 and US$1.5 M on October 2021, as well as issuing Minera Alamos 9.45 M post-consolidation shares and 3.35 M warrants. ePower has to consolidate its common shares capital on a two-for-one basis and complete a financing of at least Cdn$6 M. The Los Reyes project has an historical estimate of 427.2 K Oz Au, 7.5 M Oz Ag in indicated resources and 196.7 K Oz Au, 4.8 M Oz Ag of inferred resources.
  • Silver Viper Minerals Corp. renegotiated the terms of the Rubi-Esperanza option agreement to purchase three mineral concessions within its La Virginia project in Sonora. The overall agreement reduced the total cash payments from $4.49 M to $3 M, augmented in one year the term of the option and crucially reduced the amount on the first three payments by $1.46 M, enabling Silver Viper to direct maximum expenditures to advancing the project. According to the new agreement the company has to pay US$50 K on June 2019 (paid), US$75 K on June 2020, US$100 K on June 2021, US$200 K on June 2022 and US$2.575 M on June 2023. A 2% NSR can be purchased for US$2 M within 5 years of the original agreement remains unchanged. “Surface geochemistry and prospecting have identified targets to the north, south and east of the El Rubi discovery (6 m TW @ 3.16 gpt Au, 228 gpt Ag) which will be tested during the next phase of drilling. In addition, Silver Viper has contracted Geotech Ltd. to conduct a 720 line-kilometer magnetic and radiometric survey over the El Rubi and La Gloria targets for a total coverage of 4,900 hectares”.
  • Golden Minerals Co. entered into an agreement to sell its Velardeña properties to Compañía Minera Autlán S.A.B. de C.V. for $22 M. The deal comprises the Velardeña properties, including the Velardeña and Chicago mines (currently in care and maintenance) and other adjacent exploration properties, and the lease agreement under which Golden Minerals has the oxide plant with Hecla thorough 2020. The proposed transaction also would include the sale of the Rodeo and the Santa Maria project concessions. Upon execution of this agreement, Autlan paid a deposit of US$1.5 million to Golden Minerals, which will be applied to the purchase price upon closing.
  • Bacanora Lithium PLC. signed an investment agreement and off-take agreement with Ganfeng Lithium Co. (a key player in the lithium industry globally). Once completed this agreement would form a major part of the financing package needed to develop the initial 17,500 tonnes per year production of lithium carbonate. The £14.4 M strategic investment provides Ganfeng with 29.99% of Bacanora, pre-emption rights and a director on the board. Another project level investment of £7.56 M in Sonora Lithium Ltd. (the holding company of the project) accrues Ganfeng 22.5% of the holding company, with an option to increase its interest to 50% within 24 months and the appointment of a director to the board. GFL will provide a plant and process commissioning team to assist Bacanora in delivering first production in 2021.
  • Canasil Resources Inc. and Pan American Silver Corp. signed the definitive agreement under which Pan American has the right to acquire Canasil’s interest in the Sandra Escobar project, in Durango. The transaction was closed for a payment of CDN$2 M and grant of a 2% NSR, with Pan American being able to buy 1% of the NSR by the payment to Canasil of CDN$4 M.

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, conglomerate with well-rounded quartz vein and silicified rock fragments in the coastal plain in Veracruz. Picture by Jorge Cirett.

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