Social Responsibility

The Mining and Exploration News in Mexico: Highlights on the Second Week of May 2024

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By Jorge Cirett                                             

During the 19th week of the year (May 6th to May 12th,2024), companies working in Mexico posted at least 31 press releases. One company released exploration results in its property, while eleven companies released production results for Q1 2024. Two companies announced financing rounds for C$11.77 M, two more granted stock options, one is arranging a US$20 M loan, while another one obtained a US$5 M loan from another company. A company informed on the discovery of a new vein near mining workings, another one updated the mineral resource estimate at its property, two presented drilling results and one more a positive PEA on a copper play. One company issued shares whilst acquiring mining concessions, another one is assessing its ownership on its only Mexican asset, while one other is selling all its Mexican assets. One company informed on board changes. ON MEXICO ISSUES, Mexico was the venue for the meeting of mining industry unions from Argentina, Peru, Canada and Mexico. Golden Minerals announced the divestment of all its Mexican assets, to focus in Argentina. ON EXPLORATION, In Chihuahua, Kingsmen Resources released results from surface sampling at Las Cristinas. ON MINING, Gatos Silver, Aura Minerals, Fortuna Silver, First Majestic, GoGold Resources, Starcore International, Avino Silver & Gold, Pan American Silver, Torex Gold, Equinox Gold and Endeavour Silver presented financial/operational results for Q1 2024. ON FINANCING, Guanajuato Silver Company raised C$11.35 M, Tocvan Ventures raised C$420.6 K. GR Silver Mining granted shares to employees, officers, directors and consultants, and Osisko Development granted 283 K to independent directors. Heliostar Metals is arranging a US$20 M loan for test mining. Silver Storm received a US$5 M loan for advancing La Parrilla project in Zacatecas. ON RESOURCES AND DEVELOPMENT, Impact Silver discovered a new vein at its Zacualpan project. Sierra Metals updated the mineral resource and reserve estimate for Bolivar, in Chihuahua. Silver Storm released drilling results from La Parrilla, Durango. Vizsla Silver released drilling results from La Luisa vein at its Panuco project in Sinaloa. Barksdale Resources announced positive results from a PEA on the San Javier project in Sonora. ON DEALS AND CORPORATE ISSUES, Vizsla Silver issued shares on the acquisition of the San Enrique project concessions. Osisko Development is assessing its ownership on the San Antonio project in Sonora. GoGold announced board changes. Golden Minerals is selling all its assets in Mexico to focus in Argentina. ON SOCIAL RESPONSIBILITY, Torex Gold and Equinox Gold informed on ESG matters.

ON MEXICO ISSUES

  • Mining unions from Argentina, Perú, Canada and Mexico reunited on the second Encuentro del Frente Internacional Minero, under which the unions bid to design strategies to support and defend the rights of mining industry workers.
  • Golden Minerals is the company of the week announcing its departure from Mexico for greener pastures in Argentina.

ON EXPLORATION

  • Kingsmen Resources Ltd. reported surface sampling results from Las Coloradas project in Chihuahua. Twenty-eight samples were collected on the north end of the 1.7 km long Soledad structure/vein system, over a 530 m interval. Highest results comprise 0.6 m @ 0.121 gpt Au, 362 gpt Ag, >1% Pb, 0.4% Zn; 0.5 m @ 0.266 gpt Au, 449 gpt Ag, >1% Pb, 0.7% Zn; 0.8 m @ 205 gpt Ag, >1% Pb, 0.2% Zn; 0.5 m @ 106 gpt Ag, 1% Pb, 0.3% Zn; 1.1 m @ 76 gpt Ag, 2.0% Pb, 0.3% Zn, and two grab samples running 0.12 gpt Au, 81 gpt Ag, 2.6% Pb, 2.0% Zn; 432 gpt Ag, 4.7% Pb, 3.8% Zn. “The better silver grades are localized in structural intersections and flexures in all rock types. The mineralization likely continues at depth below the water table which is at a depth of approximately 125 meters. Blind extensions to all the mineralized structures, as well as new structures, are likely at depth…. The sizes of the old workings suggest the mined mineralization may have been up to several meters in width”. The mineralized structures have not been explored by drilling.

ON MINING

  • Gatos Silver Inc. announced first quarter 2024 financial and operating results. The company owns 70% of the Cerro Los Gatos project in Chihuahua, where 292.1 K tonnes were milled during the period at a 3,210 tpd rate, with ore averaging 284 gpt Ag, 3.99% Zn, 1.77% Pb, 0.28 gpt Au, to produce 2.37 M Oz Ag, 15.8 M Lb Zn, 10.1 M Lb Pb, 1,390 Oz Au, at $11.70 co-product cash cost per Oz Ag, $6.09 By-product cash cost per Oz Ag, $14.36 Co-product AISC per Oz Ag and $10.08 By product per Oz Ag. Total revenue was $72.2 M, at an EBITDA of $35.1 M and cash flow from operations of $37.3 M. At the end of the period the company had a cash balance of $70.6 M.
  • Aura Minerals Inc. filed its unaudited consolidated financial statements for Q1 2024. At Aranzazu, in Zacatecas, the company produced 25,000 Oz AuEq at cash cost $926 per Oz AuEq and an AISC of $1,263 per Oz AuEq.
  • Fortuna Silver Mines Inc. reported its financial and operating results for the first quarter of 2024. The company had consolidated international production of 89,678 Oz Au, 1.07 M Oz Ag (112,543 Oz AuEq). At San Jose, in Oaxaca, during the period 246.7 K tonnes were milled at a rate of 2,182 tpd, grading 147 gpt Ag, 0.90 gpt Au, recovering 89% Ag, 87% Au, to produce 759.1 K Oz Ag, 4,533 Oz Au, at cash cost $21.98 per Oz AgEq and an AISC of $24.24 per Oz AgEq. “The operation is experiencing further cost pressures driven by the continued appreciation of the Mexican peso. The Company conducts regular assessments and trade-offs between maintaining operations and opting for a care and maintenance option”.
  • First Majestic Silver Corp. announced “the unaudited condensed interim consolidated financial results” for the first quarter 2024. During the period, at San Dimas, in Durango, 179 K tonnes were processed to produce 1.16 M Oz Ag, 13,543 Oz Au. At Santa Elena, in Sonora, 224.4 K tonnes were processed to produce 355.2 K Oz Ag, 21,713 Oz Au. At La Encantada, in Coahuila, 588.6 K tonnes were processed to produce 456.2 K Oz Ag, 33 Oz Au. Total production in Mexico amounted to 1.97 M Oz Ag, 35,289 Oz Au. At the endo of the period the company had $102.1 M in cash and cash equivalents, and $127.2 M of restricted cash.
  • GoGold Resources Inc. announced financial results for Q1 2024. The company generated net income of US$1.3 M and revenue of US$8.9 M on the sale of 374.1 K Oz AgEq produced at its Parral tailings project in Chihuahua. GoGold had US$80.8 M in cash by the end of the period.
  • Starcore International Mines Ltd. announced production results for the fourth fiscal quarter ended April 2024. During the period its San Martin mine in Queretaro milled 55.8 K tonnes grading 1.91 gpt Au, 19.6 gpt Ag, recovering 88.6% Au, 56.9% Ag, to produce 3,242 Oz AuEq. The company informs new orebodies have been found with a new geological model, and industrial tests have shown carbonaceous ore is able to be treated to recover precious metals economically.
  • Avino Silver & Gold Mines Ltd. announced its consolidated financial results for the first quarter of 2024. At Avino, in Durango, 169.6 K tonnes were milled to produce 250.6 K Oz Ag, 1,778 Oz Au, 1.35 M Lb Cu (or 629.3 K Oz AgEq), at cash cost $14.89 per Oz AgEq and an AISC of $20.23 per Oz AgEq, at cash cost $14.89 per Oz AgEq and an AISC of $20.23 per Oz AgEq, remaining on track for the production in 2024 of 2.5 M to 2.8 M Oz AgEq. At La Preciosa, near to the Avino mine, capital costs for 2024 are expected to be between US$3.0 to US$4.0 M, to include “surface works and equipment procurement intended for the first phase of mine development for the Gloria and Abundancia Veins”. The company had revenue of $12.4 M and gross profit of $2.3 M.
  • Pan American Silver Corp. reported unaudited results for Q1 2024, including some figures from its Mexican operations. At La Colorada, in Zacatecas, 1.11 M Oz Ag, 500 Oz Au were produced at cash cost $25.01 per Oz Ag and an AISC of $25.37 during the period, while at Dolores, in Chihuahua, 430 K Oz Ag, 17,900 Oz Au were produced at cash cost $1,412 per Oz Au, an AISC of $2,367 per Oz Au. At the end of the period the company had working capital of $693.5 M, inclusive of cash and cash investments of $331.4 M, and $750 M available on its credit facility. Total debt of $806.6 M.
  • Torex Gold Resources Inc. reported financial and operational results for the first quarter of 2024. The company produced from its El Limón-Guajes deposit in Guerrero 115,494 Oz Au, or 117,306 Oz AuEq at cash cost $943 per Oz AuEq and an AISC of $1,221 per Oz AuEq. “The quarter closed with net cash1 of $69.2 million, including $113.2 million in cash and $44.0 million of lease-related obligations, no borrowings on the credit facilities of $300.0 million as at March 31, 2024 and letters of credit outstanding of $7.9 million, providing $405.3 million in available liquidity1”.
  • Equinox Gold Corp.  announced its first quarter 2024 summary financial and operating results, without providing figures per project (Los Filos, Guerrero).
  • Endeavour Silver Corp. announced its financial and operating results for Q1 2024. During the period the company processed 115 K tonnes at Guancaeví, in Durango, to produce 1.33 M Oz Ag, or 1.66 M Oz AgEq at an-in sustaining cost of $21.96 per Oz. At Bolañitos, in Guanajuato, 106.8 K tonnes were processed to produce 118.6 K Oz Ag, or 605 K Oz AgEq at an AISC of $15.59 per Oz. Total production without specifying the source was 1.46 M Oz Ag, 10,133 Oz Au. Cash position of $34.9 M at the end of the period.

ON FINANCING

  • Guanajuato Silver Company Ltd. filed an amended and restated offering document in relation to its previously announced brokered, best efforts offering, for aggregate proceeds of up to C$10.87 M (El Cubo, Guanajuto).
  • GR Silver Mining Ltd. granted stock options, deferred share units and performance share units in accordance with the omnibus long-term incentive plan approved on September’s 2023 AGM. The company granted 1.58 M incentive stock options to certain employees, executive officers, directors and consultants, and also 1.8 M incentive stock options to certain directors and executive officers. 35,294 deferred shares were granted to each non-executive directors for directors’ fees. Also 1.8 M performance share units were granted to certain executive officers of the company Plomosas, Sinaloa).
  • Heliostar Metals Ltd. entered into a non-binding letter of intent on a senior secured debt facility for US$20 M, with an expected fixed 10% rate of interest with a syndicate of lenders led by a New York based Asset Manager. “The net proceeds of the Facility will be used to advance the underground decline and complete test mining to process a bulk sample from the Ana Paula deposit in Guerrero…. Funds from the sale of gold produced from the bulk sample are anticipated to repay the principal and interest of the loan and the floor price for a portion of the test mining ounces minimizes completion risk”. The company will also issue 17.24 M warrants to the lenders at $0.40 and $0.55 per share (Ana Paula, Guerrero).
  • Sierra Madre Gold and Silver Ltd. announced that First Majestic Silver Ltd. advanced the company a US$5 M non-revolving secured loan. The loan is for a 2-year term and bears 15% interest rate, compounded monthly. The company agreed to pledge all the shares of the subsidiary that owns La Guitarra project in favour of First Majestic.
  • Guanajuato Silver Company Ltd. announced the closing of its previously announced brokered, best-efforts offering for aggregate gross proceeds of C$11.35 M, under a combined Listed Issuer Financing Exemption (LIFE) and concurrent placement to accredited investors. Certain directors, officers and other insiders and their affiliates participated in the offering and acquired $503 K in shares (El Cubo, Guanajuato).
  • Osisko Development Corp. granted 283.2 K deferred share units to its independent directors (San Antonio, Sonora).
  • Tocvan Ventures Corp. closed a final tranche of its previously announced non-brokered private placement for gross proceeds of C$420.6 K, and total combined gross proceeds of $2.52 M. Since early April 1,825 m of reverse circulation drilling have been completed in 15 holes at its Pilar project in Sonora, sample results are pending.

ON RESOURCES AND DEVELOPMENT

  • Impact Silver Corp. announced a new silver vein discovery in its currently producing Guadalupe mine in the Royal Mines of Zacualpan district in Estado de México. The Kena Vein south is within 100-200 m of active mine workings. Core length results from the first four holes comprise 1.65 m @ 378 gpt Ag, 0.40 gpt Au, 0.3% Pb, 0.4% Zn; 0.75 m @ 1,400 gpt Ag, 0.39 gpt Au, 0.9% Pb, 2.1% Zn; 17.30 m @ 214 gpt Ag, 0.02 gpt Au, 0.2% Pb, 0.3% Zn (including 3.90 m @ 358 gpt Ag, 0.03 gpt Au, 0.2% Pb, 0.4% Zn); 0.78 m @ 463 gpt Ag, 0.09 gpt Au, 0.6% Pb, 1.2% Zn; 1.20 m @ 198 gpt Ag, 1.99 gpt Au, 3.3% Pb, 5.9% Zn; 0.40 m @ 1,450 gpt Ag, 0.65 gpt Au, 2.2% Pb, 3.0% Zn; 0.70 m @ 1,615 gpt Ag, 0.58 gpt Au, 1.8% Pb, 6.0% Zn. “The Kena Vein South has now been drill tested over a length of 150 metres from mine Level 140 and is open for extension to the southeast, updip and downdip. Drilling is continuing”.
  • Sierra Metals Inc. updated the mineral resource and reserve estimates for its Bolivar mine in Chihuahua. Measured and indicated resources comprise 18.4 M tonnes @ 0.76% Cu, 15.29 gpt Ag, 0.25 gpt Au, containing 306 M Lb Cu, 9 M Oz Ag, 150,000 Oz Au, whilst inferred resources amount to 12.11 M tonnes @ 0.72% Cu, 12.21 gpt Ag, 0.19 gpt Au, containing 193 M Lb Cu, 4.75 M Oz Ag, 70,000 Oz Au. Mineral resources are inclusive of mineral reserves, which amount to 5.6 M tonnes @ 0.77% Cu, 16.83 gpt Ag, 0.28 gpt Au, containing 94.7 M Lb Cu, 3 M Oz Ag, 50,000 Oz Au
  • Silver Storm Mining Ltd. Released further drill results from its La Parrilla mine complex in Durango. Highlighted core length intervals comprise 4.13 m @ 376 gpt Ag, 0.04 gpt Au, 1.3% Pb, 1.4% Zn (including 0.60 m @ 1,270 gpt Ag, 0.14 gpt Au, 5.0% Pb, 7.4% Zn); 7.50 m @ 284 gpt Ag, 0.04 gpt Au, 0.9% Pb, 0.4% Zn (including 1.12 m @ 390 gpt Ag, 0.06 gpt Au, 2.0% Pb, 0.6% Zn and 1.38 m @ 611 gpt Ag, 0.03 gpt Au, 2.6% Pb, 0.9% Zn); 2.36 m @ 619 gpt Ag, 0.19 gpt Au, 1.3% Pb, 1.5% Zn (including 0.57 m @ 1,555 gpt Ag, 0.24 gpt Au, 1.6% Pb, 2.0% Zn); 1.21 m @ 466 gpt Ag, 0.14 gpt Au, 1.6% Pb, 0.7% Zn. These results come from the C1940, San Rafael and La Estrella zones in the Quebradillas mine, and are not included in the last resource estimate of August 2023.
  • Vizsla Silver Corp. reported results from six new holes at the La Luisa vein, at its Panuco project in Sinaloa. Highlighted true width results comprise 1.90 m @ 0.47 gpt Au, 29 gpt Ag; 1.30 m @ 2.07 gpt Au, 682 gpt Ag, 0.2% Pb, 0.2% Zn; 1.00 m @ 0.69 gpt Au, 65 gpt Ag, 0.2% Pb; 0.75 m @ 2.78 gpt Au, 827 gpt Ag, 0.6% Pb, 1.8% Zn; 2.0 m @ 2.94 gpt Au, 102 gpt Ag, 0.2% Pb, 1.1% Zn; 0.56 m @ 7.96 gpt Au, 78 gpt Ag, 0.3% Pb, 1.5% Zn; 2.90 m @ 0.71 gpt Au, 185 gpt Ag, 1.4% Pb, 0.7% Zn; 1.22 m @ 0.71 gpt Au, 255 gpt Ag, 2.3% Pb, 1.2% Zn; 0.56 m @ 0.53 gpt Au, 234 gpt Ag, 0.7% Pb, 0.2% Zn; 2.11 m @ 0.93 gpt Au, 33 gpt Ag, 0.2% Pb, 1.8% Zn; 0.80 m @ 1.05 gpt Au, 77 gpt Ag, 0.1% Pb, 0.2% Zn; 2.70 m @ 0.42 gpt Au, 52 gpt Ag, 0.2% Pb, 0.6% Zn; 0.48 m @ 61.60 gpt Au, 3,310 gpt Ag, 0.8% Pb, 1.3% Zn; 1.10 m @ 7.79 gpt Au, 103 gpt Ag, 0.2% Pb, 0.8% Zn; 0.73 m @ 9.73 gpt Au, 115 gpt Ag, 0.2% Pb, 1.0% Zn. La Luisa vein has been mapped for 1,500 m on the surface, and defined by 57 holes for 1,670 m and 450 m downdip, averaging 2.56 m @ 3.09 gpt Au, 150 gpt Ag, 0.36% Pb, 1.35% Zn.
  • Barksdale Resources Corp. announced positive results of a preliminary economic assessment (PEA) completed on the San Javier oxide copper-gold project in Sonora. “The PEA envisions a modest capital cost project utilizing conventional openpit mining with a solvent-extraction and electrowinning (“SXEW”) plant to produce LME-grade copper cathodes on-site”. Highlights include a 13-year mine life producing 209 M Lb of cathode Cu with an on-site SXEW, open pit mining with a waste to ore ratio of 0.66 to 1, average LOM cash costs of $2.16 per Lb Cu, low initial cost of US$116.8 M an upside expansion on the Mesa Grande and Trinidad areas and the assessment of potential gold recovery and run of mine processing. Metallurgical testwork returned 85% recovery of soluble copper in the leach cap and oxide zones, 75% in the mixed oxide/sulfide and 60% recovery in the sulfide zone. The mineral resource estimate stands at 70.1 M tonnes @ 0.271% Cu containing 289.4 M Lb soluble Cu in the measured and indicated category, and 6 M tonnes @ 0.240% Cu, containing 19.9 M Lb of soluble Cu.

ON DEALS AND CORPORATE ISSUES

  • Vizsla Silver Corp. has now issued 448.1 K shares in relation to the acquisition of the 10,667 Ha San Enrique project claims in Sinaloa from Inca Azteca Gold S.A.P.I. de C.V. Minera Canam, S.A. de C.V. The claims are south and partially adjacent to Vizsla’s Panuco project, and covered 100% with LiDAR and partially covered with high-resolution aero-magnetic and radiometric surveys.
  • Osisko Development Corp. informed the San Antonio project in Sonora was placed in care and maintenance after completion of processing of the remaining stockpile inventory from the heap leach pad in Q3 2023. The company waits for the next steps the government takes after the June 2024 presidential elections with respect to the permitting process and the status of open pit mining in the country. Osisko is “exploring the potential for a financial or strategic partner in the asset or for a full or partial sale of the asset”.
  • GoGold Resources Inc. announced the retirement of George Wayne, FCPA, FCA from its board. The company has appointed Douglas Reid to its board (Parral Tailings, Chihuahua).
  • Golden Minerals Co. entered into a definitive agreement to sell the primary assets comprising its Velardeña properties in Durango. “The assets being sold include the Velardeña and Chicago mines, both of the Company’s oxide and sulfide processing plants and related equipment”. On April 29, 2024, the buyer paid a non-refundable $1 M in cash. On May 20, 2024, the buyer shall pay $2.0 M in cash and on July 1, 2024, the buyer shall pay $2.5 M in cash. In other matters, the company agreed to pay $250 K to Unifin Financiera S.A.B. de C.V. in exchange for UNIFIN’s withdrawal of an ongoing lawsuit. “The sale will enable us to divest of our production assets and related liabilities in Mexico and allow us to focus on exploration and development, principally of our Argentina assets. We also anticipate future net proceeds from the sale of tax credits related to the holding companies of the production assets.”

ON SOCIAL RESPONSIBILITY

  • Torex Gold Resources Inc. “exited the quarter with one lost-time ankle injury at the Media Luna Project and reached 14 million hours lost-time injury free at the El Limón-Guajes (“ELG”) Mine Complex”. The lost-time injury frequency for the Morelos Complex in Guerrero was 0.15 per million hours worked for employees and contractors on a rolling 12-month basis.
  • Equinox Gold Corp. published its 2023 Environmental Social and Governance (ESG) report.

On the image below: Long shadows on vein ridges on a project in the Sonoran Desert. Picture by Jorge Cirett.

Minería en México enfrenta desafíos energético e hidrológicos

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Por Christopher Calderón   diciembre 18, 2023 | 3:30 am hrs

La minería en México se enfrenta a críticas reveladoras: el 62 por ciento de la energía que usan proviene de combustibles fósiles y el 21 por ciento del agua que consume es subterránea. Sin embargo, ante este panorama, el sector se ha convertido en un actor clave para la transición energética, invirtiendo significativamente en acciones ambientales.

Según el Informe de Sostenibilidad 2023 de la Cámara Minera de México (Camimex), en 2022, el sector minero destinó 5 mil 881 millones de pesos a iniciativas para cuidar el medio ambiente. A pesar de que el 38 por ciento de su consumo de energía se ha migrado a fuentes limpias, persiste el reto de reducir la dependencia del 62 por ciento restante en combustibles fósiles.

Puede continuar leyendo el artículo en la fuente: https://www.elfinanciero.com.mx/empresas-ESG/2023/12/18/mineria-en-mexico-enfrenta-desafios-energetico-se-hidrologicos/

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

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By Jorge Cirett                                             

During the 27th week of the year (July 3rd to July 9th, 2023), 11 companies working in Mexico posted news releases. One company informed on exploration work at its property, while there were no relevant news on mining. One company informed on the closing of private placement. Two companies reported on work at their advanced properties. One company deferred a significant payment on the acquisition of a property and one more announced the revocation of a management cease trade order. ON MEXICO ISSUES, Camimex pointed that investment in the mining industry is down 34.5% from its high in 2012, and that Mexico has fallen 17 places in the Investment Attractiveness Index by the Fraser Institute since 2010.  ON EXPLORATION, in Sonora, Tocvan Ventures concluded the leaching test of material from the Pilar project. ON MINING, no relevant news. ON FINANCING, Canuc Resources closed a CAD$2 M non-brokered private placement. Inomin Mines granted 1.4 M stock options to directors and advisors of the company. ON RESOURCES AND DEVELOPMENT, Avino Silver & Gold Mines released results from deep drilling at its Avino property in Durango. ON DEALS AND CORPORATE ISSUES, Bear Creek Mining signed an agreement with Equinox Gold to defer a US$26 M payment over the acquisition of the Mercedes mine in Sonora. ON SOCIAL RESPONSIBILITY, Discovery Silver released its 2022 ESG report. ON MEXICO ISSUES

  • According to Camimex (Cámara minera de México) investment in the Mexican mining industry in 2022 was 5.26 billion dollars (5,265 million pesos), a 34.5% drop relative to the historic high in 2012. Camimex president, Jaime Gutierrez Núñez, pointed that stability is needed and that the mining industry has to be incentivized, further adding that Mexico has lost 17 position is the Investing Attractiveness Index by the Fraser Institute from 2010 to 2022. The major concern of the sector relies on the exploration front, as the new law set an exploration monopoly by the government.
  • Camimex is trying to build along the Secretaría de Economía (SE) a new regional mining workplan along with the governors of Sonora, Chihuahua, Durango, Zacatecas and Guerrero, entities that comprise 84% of the national mining production. The plan had been presented to Tatiana Clouthier, the latter head of the SE.

ON EXPLORATION

  • Colibri Resource Corp. reported that its option partner Tocvan Ventures concluded the leaching process of bulk sample materials from its Pilar property in Sonora. The final results for recovery are pending on the 44 days of active leaching completed. New agitated bottle roll test returned 81% Au, 99% Ag recovery after 72 hours.

ON MINING

  • No Relevant News.

ON FINANCING

  • Canuc Resources Corp. closed a non-brokered private placement raising CAD $2 M. (San Javier, Sonora).
  • Inomin Mines Inc. reported the granting of 1.4 M stock options to directors and advisors of the company (La Gitana, Oaxaca).

ON RESOURCES AND DEVELOPMENT

  • Avino Silver & Gold Mines Ltd. released results from three drill holes on its Avino property, in Durango. The holes were drilled below Level 17, the current deepest working at the Elena Tolosa (ET) area of the Avino system. Highlighted true width results comprise 11.00 m @ 0.12 gpt Au, 148 gpt Ag, 0.58% Cu; 10.20 m @ 0.11 gpt Au, 138 gpt Ag, 0.33% Cu; 57.00 m @ 0.55 gpt Au, 99 gpt Ag, 1.21% Cu (including 0.80 m @ 1.74 gpt Au, 956 gpt Ag, 7.30% Cu; and 0.89 m @ 1.98 gpt Au, 1,243 gpt Ag, 5.81% Cu; and 0.85 m @ 16.50 gpt Au, 1,791 gpt Ag, 8.69% Cu; and 0.89 m @ 10.60 gpt Au, 1,083 gpt Ag, 8.58% Cu). “The direction of the increasing copper grade plunges steeply towards the east in the Avino vein. The changing tenor of the mineralization could be reflecting a transition from epithermal to porphyry-style mineralization”.
  • Southern Silver Exploration Corp. launched an interactive 3D and 360 degree presentation for the Cerro Las Minitas project in Durango (https://api.newsfilecorp.com/redirect/BpNNNFLRDO).

ON DEALS AND CORPORATE ISSUES              

  • Bear Creek Mining Corp. signed an agreement with Equinox Gold Corp. to defer a US$26 M current liability by issuing a five-year convertible promissory note with 7% interest. Payment of the note will satisfy the final purchase price installment for the Mercedes mine in Sonora.
  • Gatos Silver Inc. announced that on July 4, 2023 the Ontario Securities Commission fully revoked the management cease trade orders granted in respect of certain former and current senior officers on April 1, 2022, April 12, 2022 and July 7, 2022 (Cerro Los Gatos, Chihuahua).

ON SOCIAL RESPONSIBILITY

  • Discovery Silver Corp. released its 2022 ESG (Environmental Social and Governance) report, including the reception of the Socially Responsible Enterprise (ESR) and Great Place to Work awards.

On the image below: Vein ridges on a project in the Sonoran Desert. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico; Highlights on the Second Week of June 2023

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By Jorge Cirett                                             

During the 23rd week of the year (June 5th to May 11th, 2023), 14 companies working in Mexico posted news releases. One company informed on exploration at one of its properties, two companies informed on quarterly reports and one on its financing dependant plans to resume mining. Two companies updated on private placements and one announced the payment of dividends. One company released drilling results on its advanced property in Zacatecas. One company informed on its path to a legal battle with the Mexican government and one other on solving issues related to disclosure of refinancing. ON MEXICO ISSUES, Newmont’s Peñasquito mine in Zacatecas suspended operations due to a strike over profit sharing schemes.  relevant news. ON EXPLORATION, in Zacatecas, Radius Gold informed on current work and targeting process at Tropico. ON MINING, Santacruz Silver Mining released Q4 and full year 2022 financial and operating reports, Golden Minerals reported results for Q4 2022, full year 2022 and Q1 2023. ON FINANCING, Radius Gold closed its placement for $1.95 M in gross proceeds. Luca Mining closed the second tranche of its placement, accruing $20.75 M, and settled debt by issuing $8.6 M in shares. ON RESOURCES AND DEVELOPMENT, Defiance Silver released results from drilling at the Veta Grande system in the Zacatecas District. ON DEALS AND CORPORATE ISSUES, Silver Bull intends to seek US$178 M in compensation from the Mexican government over its reluctance to terminate an illegal blockade at its Sierra Mojada project in Coahuila. Sierra Metals announced its meeting materials with respect to certain disclosure relating to refinancing with its major lenders. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • Newmont Corp. announced on June 8th, 2023, the suspension of operations at the Peñasquito mine in Zacatecas. The company refutes claims by the National Union of Mine and Metal Workers of the Mexican Republic regarding the violation of legal regulations and labor agreements. The Company urged the Union to abide by the mutually agreed Collective Bargaining Agreement negotiated and signed by both parties in June of 2022. The Union is demanding an increase in the uncapped profit sharing benefit provided for in the CBA from 10 percent to 20 percent, representing a 100 percent increase. “Prior to the strike action, Newmont attempted, in good faith, to resolve disputes regarding the provisions in the CBA, negotiated and signed by both parties for the period of June 2022 through June 2024. This agreement covered a range of benefits, including an annual profit sharing provision based on a consistent calculation formula. ….. On May 30, 2023, Minera Peñasquito paid all eligible employees the mutually agreed upon 10 percent profit sharing benefit for 2023, accurately and on time”.

ON EXPLORATION

  • Radius Gold Inc. informed on new targets defined at its Tropico project in Zacatecas. In the three months since acquisition Radius has completed geological mapping, surface rock sampling and a deep penetrating CSMAT geophysical survey, establishing a hotspring type sinter, a breccia pipe and a strong resistive feature named Capricorn interpreted as a second potential breccia pipe structure. “The Tropico gold system is roughly oval shaped, 450m long by 250m wide orientated NNE”.

ON MINING

  • Santacruz Silver Mining Ltd. reported its financial and operating results for Q4 2022 and the full year. During the year the company processed 1.65 M tonnes to produce 5.6 M Oz Ag, 10,065 tonnes Pb, 72,533 tonnes Zn, 1,287 tonnes Cu (or 14.4 M Oz AgEq), at cash cost $17.58 per Oz AgEq and an AISC of $20.93. At Zimapan, in Hidalgo, 822.1 K tonnes were processed in the period, averaging 73 gpt Ag, 2.13% Zn, 0.65% Pb, 0.37% Cu, to produce 1.29 M Oz Ag, 3,923 tonnes Pb, 12,087 tonnes Zn, 1,287 tonnes Cu (or 3.31 M Oz AgEq). Revenue was $278.6 M. and the adjusted EBITDA $11.4 M.
  • Golden Minerals Co. announced that it plans to restart Au-Ag mining operations at its Velardeña properties in Durango, subject to receipt of sufficient capital. The plan envisages starting with four active stopes with processing at Velardeña’s plant flotation facility at 80 tonnes per day (tpd), and reach a steady rate of 325 tpd by the end of the year. “The Company needs to raise additional cash in the very near term, whether through the sale of non-core assets or equity financing, including the use of its ATM program. In the absence of sufficient asset sales, equity financing or other external funding the Company’s cash balance is expected to be depleted early in the third quarter of 2023. If financing or asset sales are not available to us, we could be forced to liquidate our business”.
  • Gatos Silver Inc. reported results for Q1 2023, Q4 2022 and full year 2022. In 2022 the Cerro Los Gatos mine in Chihuahua processed 971.6 K tonnes at a daily rate of 2,662 tonnes, averaging 368 gpt Ag, 4.37% Zn, 2,31% Pb, 0.33 gpt Au, recovering 89.8% Ag, 64.8% Zn, 88.7% Pb, 52.0% Au, to produce 10.32 M Oz Ag, 60.7 M Lb Zn, 43.9 M Lb Pb, 5,350 K Oz Au. For Q1 2023, 260.4 K tonnes were milled at 2,894 tpd, averaging 329 gpt Ag, 3.93% Zn, 1.86% Pb, 0.30 gpt Au, recovering 88.3% Ag, 62.2% Zn, 88.6% Pb, 55.3% Au, to produce 2.43 M Oz Ag, 14.0 M Lb Zn, 9.5 M Lb Pb, 1,380 Oz Au. “The Company had a cash balance of $10.5 million and debt outstanding of $9 million related to its credit facility as of May 31, 2023”. The Los Gatos Joint Venture continues to generate cash, with a cash balance of $78.9 M at May 31, 2023.

ON FINANCING

  • Radius Gold Inc. closed its previously announced non-brokered private placement, for gross proceeds od $1.95 M. (Tropico, Zacatecas).
  • Alamos Gold Inc. declared a quarterly dividend of US$0.025 per common share. “The Company has paid dividends for 14 consecutive years during which time $304 million has been returned to shareholders through dividends and share buybacks, including $20 million thus far in 2023” (Mulatos, Sonora).
  • Luca Mining Corp., formerly Altaley Mining Corp., closed the second tranche of its previously announced private placement for aggregate gross proceeds of $20.75 M. Concurrently, the company also settled a loan in the amount of $3.7 M in consideration of the issuance of shares and a second debt settlement of $4.9 M by also issuing shares. Incentive stock options were issued to directors, officers and employees for a total of 4.4 M shares and a further 250 K options to two marketing and investor relations advisors. “Due to continued strong demand, the Company has determined it will extend its previously announced private placement” to June 30, 2023 (Campo Morado, Guerrero).

ON RESOURCES AND DEVELOPMENT

  • Defiance Silver Corp. released results from drilling at the Zacatecas District project in Zacatecas. Highlighted core length results comprise 4.80 m @ 349 gpt Ag, 0.14 gpt Au, 0.14% Pb, 0.35% Zn (including 1.32 m @ 1,264 gpt Ag, 0.52 gpt Au, 0.51% Pb, 1.20% Zn); 4.65 m @ 144 gpt Ag, 0.08 gpt Au, 0.18% Zn (including 0.84 m @ 728 gpt Ag, 0.32 gpt Au, 0.17% Pb, 0.72% Zn); 1.01 m @ 237 gpt Ag, 0.07 gpt Au; 41.83 m @ 157 gpt Ag, 0.07 gpt Au, 0.16% Zn (including 15.96 m @ 380 gpt Ag, 0.15 gpt Au, 0.12% Pb, 0.37% Zn, which includes 1.00 m @ 2,350 gpt Ag, 0.51 gpt Au, 0.77% Pb, 2.78% Zn); 5.52 m @ 144 gpt Ag, 0.11 gpt Au, 0.33% Zn. The holes were testing the Veta Grande structure in or near the San Acacio resource area.

ON DEALS AND CORPORATE ISSUES             

  • Silver Bull Resources Inc. has taken significant steps in its pursuit of compensation regarding the Sierra Mojada project in Coahuila. Under NAFTA rules the company attended a meeting with government officials on its claim of seeking damages resulting from the unlawful blockade at its project, and the government failure to solve it. “The next phase of the process entails the Company filing a Request for Arbitration in mid-June, formally commencing the arbitration proceedings. The claim filed by Silver Bull will be for not less than US$178 million dollars”.
  • Sierra Metals Inc. announced that its meeting materials for its June 28, 2023 annual and special meeting of shareholders will be filed under its directory on the “System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com on Wednesday, June 7, 2023”. The company has received enquiries from shareholders with respect to “certain disclosure in its May 30, 2023 news release announcing the refinancing with its major lenders” and the refinancing agreement (Bolivar, Chihuahua).

ON SOCIAL RESPONSIBILITY

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On the image below: Epidote lined fracture on igneous rocks of a copper project in the Sonoran Desert. Picture by Jorge Cirett.