The Mining and Exploration News in Mexico: Highlights on the Fourth Week of November 2022

By Jorge Cirett

During the 47th week of the year (November 21st to November 27th, 2022), 14 companies working in Mexico released news on their properties. One company declared share dividends, one more the partial repayment of two loan facilities and one more the intention to settle a debt with shares. Four companies updated on work at its advanced properties. One company announced the agreement to pursue an option in another company’s property.  ON MEXICO ISSUES, the AIMMGM pointed that Mexico is a mining country, but that it has neglected to inform of the goods of the trade. Arcelor Mittal announced a significant investment at the Las Truchas iron mine in Michoacan. ON EXPLORATION, In Sonora, Radius Gold informed on work at Maricela. In Chihuahua, Radius Gold updated in work at Amalia and Plata Verde projects, with JV’s partners Pan American Silver and Fresnillo respectively. ON MINING, Discovery Silver, Impact Silver and Guanajuato Silver Company released Q3 2022 production and/or financial results. ON FINANCING, Alamos Gold declared a quarterly dividend per share. Guanajuato Silver Company announced the partial repayment of two loan facilities. Defiance Silver is to settle a $41.9 K debt through the issuance of shares. ON RESOURCES AND DEVELOPMENT, Discovery Silver released results from drilling at Cordero, in Chihuahua. GR Silver Mining informed on results from drilling at the SE zone of the San Marcial project in Sinaloa, with an impressive silver intercept of 185.5 m @ 111 gpt Ag. Defiance Silver resumed drilling at the Veta Grande vein system in Zacatecas. Azucar Minerals received results from drilling on the Lithocap target at the El Cobre project in Veracruz. ON DEALS AND CORPORATE ISSUES, Vizsla Silver entered into a LOI with Prismo Metals for a strategic investment and right of first refusal for the purchase of Prismo’s Palos Verdes project in Sinaloa.

ON MEXICO ISSUES

  • Andrés Robles Osollo, Vicepresident of government relations of the AIMMGM (Asociación de Ingenieros de Minas, Metalurgistas y Geólogos de México) pointed that México is a mining country, but that the industry has neglected the promotion of the craft and the importance of México on the World production of minerals. México is the leader in silver production, and is within the first ten producers of gold, copper, lead and zinc.
  • Arcelor Mittal announced the investment of 3,000 million pesos at Las Truchas mine in Michoacan, to increase the production rate from 1 M tonnes/year to 2.3 M tonnes/year. The company complained on the illegal blockage of the railroad line for three months in 2021 by a teachers Union, and said that they are working closely with the Michoacan government to keep the rails free of blockades.  

ON EXPLORATION

  • Radius Gold Inc. provided an update on the company’s exploration activities at the 10,250 ha Amalia project, in Chihuahua. The JV with Pan American Silver Corp. has completed 23,059 m of drilling in 67 holes on the California, Amalia and El Cuervo vein systems. Recent mapping and sampling extended the target for 1.5 km at California, and several parallel structures were identified. Pan American “has completed its right to earn an initial 65% interest in the Amalia Project by making cash payments to Radius totalling US$1.5 million (paid) and expending US$2 million on exploration over four years (completed). Pan American may earn an additional 10% by advancing the property to preliminary feasibility”.
  • Radius Gold Inc. informed on work at the Plata Verde project in Chihuahua. Fresnillo PLC has an agreement since mid-2022 to negotiate an option agreement to earn 70% interest in the project. Since then, Fresnillo has funded US$100 K on the signature of the agreement, paid US$65 in underlying property option payments, paid US$103 K in back taxes and invested US$35 K in the project. Fresnillo has to spend over a four-year period US$5 M in exploration and make option payments to Radius of US$3.1 M which includes US$1.1 M to cover underlying property payments. “Should either Party’s interest fall below 10% interest in NewCo that interest would convert to a 2% NSR”.
  • Radius Gold Inc. notified on exploration at its Maricela project in Sonora. The project is 20 km south from the Cananea copper mine, and only a few kilometers from the Loma de Plata silver deposit discovered a few years ago by Azure Minerals. Radius has “mapped and sampled an epithermal silver and gold mineralized vein system extending approximately 1.5km long by 300m wide, within which occurs multiple veins, stockworks and breccias. Vein intersections have exposed widths of up to 25 metres”. Highlighted chip sampling results comprise 3 m @ 4.46 gpt Au, 1,335 gpt Ag; 6 m @ 1.03 gpt Au, 418 gpt Ag; 25.3 m @ 0.31 gpt Au, 62 gpt Ag. Radius is awaiting final registration of the option agreement, as already counts with the drilling permit.

ON MINING

  • Discovery Silver Corp. released financial results for the third quarter 2022. Results from the PFS metallurgical testwork program at Cordero in Chihuahua highlighted recoveries in the 90-95% range for Ag, Pb and Zn. The phase II drilling program of close to 80,000 m of drilling in over 250 holes was completed during the quarter. Cash, cash equivalents and short-term investments stood at $55.5 M at the end of the period.
  • Impact Silver Corp. announced its financing and operating results for the Q3 2022. During the quarter 39.8 K tonnes were processed at the mill at an average grade of 165 gpt. In response to higher operational costs and lower metal prices, Impact initiated a first round of lay-offs and reduced its exploration spending. “The cash position remains strong at $16.5 million with working capital of $17.6 million”.
  • Guanajuato Silver Company Ltd. provided consolidated production results for the Q3 2022. The consolidated production from the El Cubo Mines Complex in Guanajuato, San Ignacio in Guanajuato and Topia in Durango during the quarter comprised 107.4 K tonnes mined, 107 K tonnes milled at a rate of 1,274 tonnes per day, recovering 88.5% Ag, 86.3% Au, to produce 329.3 K Oz Ag, 3,226 Oz Au, 537.6 K Lb Pb, 677.1 K Lb Zn (700.3 K Oz AgEq).

ON FINANCING

  • Alamos Gold Inc. declared a quarterly dividend of US$0.025 per common share. “The Company has paid dividends for 13 consecutive years during which time $285 million has been returned to shareholders through dividends and share buybacks, including $48 million thus far in 2022” (Mulatos, Sonora).
  • Guanajuato Silver Company Ltd. announced the partial repayment of the two loan/pre-payment facilities with Swiss-based precious metal trading firm OICM Precious Metals S A. “Guanajuato Silver has delivered an aggregate of 96,518 ounces of silver and 846 ounces of gold representing five months’ deliveries of silver and gold ounces to OCIM thereby reducing the total number of monthly delivery payments remaining to OCIM under both facilities to ten” (El Cubo, Guanajuato).
  • Defiance Silver Corp. intends to settle $41.9 K of debt through the issuance of common shares of the company (San Acacio, Zacatecas).

ON RESOURCES AND DEVELOPMENT

  • Discovery Silver Corp. announced results from 15 drill holes of upgrade and expansion drilling of the proposed open pit, subsequent to the cut-off date for the pre-feasibility study (PFS) on its Cordero project in Chihuahua. Highlighted core length intervals comprise 77 m @ 46 gpt Ag, 0.08 gpt Au, 0.7% Pb, 1.4% Zn; 22 m @ 83 gpt Ag, 0.10 gpt Au, 1.8% Pb, 3.2% Zn; 96 m @ 33 gpt Ag, 0.03 gpt Au, 0.7% Pb, 1.8% Zn (including 36 m @ 44 gpt Ag, 0.04 gpt Au, 0.9% Pb, 3.1% Zn); 43 m @ 62 gpt Ag, 0.11 gpt Au, 1.4% Pb, 1.7% Zn; 52 m @49 gpt Ag, 0.07 gpt Au, 0.8% Pb, 1.7% Zn. “The Company has now completed approximately 17,000 m (52 holes) as part of its Feasibility Study drill program”. Total meters drilled in the project now is over 293,000 m in 735 holes.
  • GR Silver Mining Ltd. released surface drilling results from four holes on the Southeast Area of the San Marcial project in Sinaloa. Highlighted core length results comprise 14.1 m @ 186 gpt Ag (including 0.2 m @ 6,405 gpt Ag, 10.1% Pb, 17.9% Zn); 73.5 m @ 72 gpt Ag (including 1.1 m @ 905 gpt Ag and 0.8 m @ 1,039 gpt Ag); 185.5 m @ 111 gpt Ag (including 83.2 m @ 215 gpt Ag); 1.0 m @ 31.3 gpt Au. “The Company expects to complete three more drill holes in the SE Area prior to the December cut-off date for data to be incorporated into the 3D geological model, with the updated resource estimation expected to be released in Q1|2023”.
  • Defiance Silver Corp. resumed drilling at the Veta Grande vein system at the Zacatecas project in Zacatecas. “The approximate 4000m program is an extension of the previous phases of drilling, all of which returned high grades down plunge and outside of the current resource estimate”. Drilling is to focus on the recently discovered deep historic working to the East, down plunge of high-grade results below the current resource estimate, the footwall vein north of the main Veta Grande structure and the cross structures and vein splays with mineralization potential.
  • Azucar Minerals Ltd. received and compiled results from two holes completed at the Lithocap target at its El Cobre project in Veracruz. “Large intervals of brecciated rock were intersected possibly reflecting a diatreme like body that may have disrupted any earlier porphyry alteration zonation in this area”. No significant intervals of porphyry mineralization were intersected, with the most relevant result being a late sulfide vein which returned 0.7 m @ 0.95% Cu, 0.42 gpt Au.

ON DEALS AND CORPORATE ISSUES

  • Vizsla Silver Corp. entered into a non-binding letter of intent (LOI) with Prismo Metals Inc. to make a strategic investment with right for first refusal to Purchase the Palos Verdes property, adjacent to Vizsla’s Panuco project in Sinaloa, and 4 M shares of Prismo for C$2 M. “The consideration for the Strategic Investment will consist of a cash payment of C$500,000 at closing and 1,000,000 common shares of Vizsla”. After completion of the deal VIZSLA will own 12% of Prismo shares on a basic basis and 17% on a partially diluted basis.

ON SOCIAL RESPONSIBILITY

  • Vizsla Silver Corp. exceeded one million consecutive work hours without a lost time incident at its Panuco project in Sinaloa.
  • Discovery Silver Corp. released its environmental, social and governance report (ESG) “and subsequent to quarter end received its official ESR Distinction, which is issued by the Mexican Center for Philanthropy to organizations that have demonstrated they operate in a socially and environmentally responsible manner, and its Great Place to Work Certification, which recognizes companies that create an outstanding employee experience through building a workplace culture of trust, credibility, respect, pride and collaboration” (Cordero project, Chihuahua).
  • Torex Gold Resources Inc. released its inaugural Climate Change Report with emphasis in carbon emission reduction, and confirmed having received the permitting from SEMARNAT (Environmental regulator) for construction of an 8.7 megawatt solar plant on its mining concessions and the awarding of a contract for battery electric vehicle scoop fleet at its Media Luna project in Guerrero.

On the image below puzzling boudin like siliceous bands in limestone on a project in the Sonoran Desert. Picture by Jorge Cirett.

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

Quartz stockwork veining

By Miguel A Heredia

During the 46th week of the year (November 14th to November 20th, 2022), at least 15 press releases were announced by companies working in Mexico, and 3 news published by the media with five reporting resources and developments of their properties, four communicating production and financial results, three informing on exploration results, three commenting on Mexican issues, one disclosing deals and corporate issues, one discussing social issues, and one announcing financing issues. ON MEXICO ISSUES, The mining industry is one of the industries that consumes the least vital liquid and, at the same time, the one that acquires it at the highest cost, refuting the myth about water consumption in mining. Alamos Gold, GoGold, Aztec Minerals, Silver Tiger, and Minaurum Gold reported the best drilling intercepts in Mexico on the third week of November, 2022. ON EXPLORATION, In Sonora, Aztec Minerals reported results for five drill holes from the recently completed phase 3 drill program at its Cervantes project, Tocvan announced that initial drilling is ongoing at its El Picacho project, and Minaurum provided an update on the underground rehabilitation work at the historical Promontorio mine within its Alamos Silver project. ON MINING, Starcore reported Q2, 2022 production and financial results from its San Martin mine in Queretaro. MAG Silver announced Q3, 2022 production and financial results from its Juanicipio project in Zacatecas. US Antimony reported September-October production results. SilverCrest reported Q3, 2022 production and financial results from its Las Chispas project in Sonora. ON FINANCING, Vizsla closed its previously announced bought deal financing for gross proceeds of $CAD 34.5M (Panuco project, Sinaloa).  ON RESOURCES AND DEVELOPMENT, Silver Tiger released results from its on-going drilling program at its El Tigre project in Sonora, and provided an update on the underground rehabilitation of the El Tigre Mine. Gatos Silver announced that it has filed a NI 43-101 technical report to disclose a Mineral Resource and Mineral Reserve update for its Los Gatos project, Chihuahua. Alamos Gold extended high-grade mineralization at its Puerto del Aire Deposit within Mulatos district, Sonora. GoGold released strong results from the new drilling program at its Los Ricos South Main Area and at the newly acquired Eagle concession in Jalisco. Zacatecas Silver announced its initial Mineral Resource Estimate (MRE) at its Esperanza Gold project in Morelos. ON DEALS AND CORPORATE ISSUES, Zacatecas Silver entered into an agreement with Gold Standard Media and with Future Monet Trends to raise awareness of the company`s shares among investors (Esperanza Gold project, Morelos). ON SOCIAL RESPONSIBILITY, Fundación Grupo México in alliance with the Government of Jalisco, promoted the forest recovery in the Municipalities of Sayula, Encarnación de Díaz and Ocotlán through the Ministry of Environment and Territorial Development (SEMADET) in coordination with the Intermunicipal Boards of the Environment (JIMA) and the Jalisco Solidarity Volunteers.

ON MEXICO ISSUE

  • The mining industry is one of the industries that consumes the least vital liquid and, at the same time, the one that acquires it at the highest cost, while agricultural use, which represents 77% of national water consumption, does not contribute any payment for it to the public treasury. Despite the fact that it only consumes 1.4% of the country`s water, the authorization of concessions for the use of this resource for mining constitutes the main source of income for this concept of the Ministry of Environment and Natural Resources (SEMARNAT) and the National Water Commission (CONAGUA).  According to data from the Mining Chamber of Mexico (CAMIMEX), around 50% of government incomes from payment of rights for the use of water in the country are those contributed by mining companies. The Mexican territory is divided in four availability zones and, depending on the zone in which it operates, is the amount that concessionaires must pay for each cubic meter. Mexican mining pays up to MXP $26 for each cubic meter of water, while the average for the different industries is MXP $14. Municipalities pay only MXP $0.58. Meanwhile, the agricultural and livestock sectors, which are the main consumers in the country, do not pay rights for concessions for the use of water and despite this, these users tend to blame mining for the shortage. In Mexico, there are two types of concessions for the use of water: groundwater (located in subsoil aquifers) and surface water (found in rivers and lakes). According to CONAGUA, the main uses of this water resource are agricultural and livestock, which together consume approximately 76.7%; It is followed by urban public use, which is equivalent to 14.1%; the use for electricity generation with 5.1% and industries, whose consumption amounts to 4.1%. Of this amount, 0.9% corresponds to the mining sector.  It refutes the myth about water consumption in mining.
  • Alamos Gold Inc, GoGold Inc, Aztec Minerals Corp, Silver Tiger Metals Inc, and Minaurum Gold Inc reported the best drilling intercepts in Mexico on the third week of November, 2022. Details are shown in the table below:

ON EXPLORATION

  • Aztec Minerals Corp., reported results for five drill holes from the recently completed phase 3 drill program at its Cervantes project in Sonora. Highlights of the drilling include hole CAL22-027 in the West-Central area of the California Zone with 0.68 g/t Au over 120m; and hole CAL22-029, a step out extending the California Zone to the North, with 0.77 g/t Au over 57m.  These results have expanded the footprint of the known extents of the mineralized and altered California quartz feldspar intrusive complex to the North. “The area currently being drilled measures approximately 900 meters long E – W by 730 meters wide, with demonstrated, continuous mineralization of up to 170 meters in depth. The porphyry gold-copper mineralization is still open in all directions”.
  • Tocvan Ventures Corp., announced that initial drilling is ongoing at its El Picacho project in Sonora. The drilling program is focused on two primary areas within the San Ramon prospect: Las Guijas where underground chip samples range from 0.5 to 8.2 g/t Au, with an average of 3.6 g/t Au, and San Ramon where underground samples range from 0.3 to 22 g/t Au, with an average of 5 g/t Au. The property is currently permitted for 14 drill pads. El Picacho is host to several other target areas permitted for drilling that span across the 24 km2 project area.  
  • Minaurum Gold Inc., provided an update on the underground rehabilitation work at the historical Promontorio mine within its Alamos Silver project. It informed that has successfully accessed and is dewatering the main haulage level along with clearing crosscuts in the El Tirito area of the mine, which lies approximately 300m from the Promontorio adit entrance. Approximately 200 tonnes of ballast and 50 tonnes of backfill have been removed from the first 300 m of the haulage level and stockpiled outside the mine entrance. Three of the five service holes that were drilled to provide air, water, and electricity to facilitate underground rehabilitation efforts intercepted the Promontorio Vein. The most significant drill intercept encountered 98 g/t Ag, 3.6% Pb, and 7.9% Zn over 5.8m. In addition, sampling and mapping of dumps at Promontorio revealed a boulder of massive sulfide vein assaying 3,320 g/t Ag, 54.7 g/t Au, 25% Cu, 6.5% Pb, and 1.1% Zn. “The boulder, measuring roughly a meter across, is an indication of the type of grades exploited by early miners at Promontorio”.

ON MINING

  • Starcore International Mines Ltd., reported Q2, 2022 production and financial results from its San Martin mine in Queretaro. The company milled 57,165 tonnes of 1.46 g/t Au and 13 g/t Ag with metallurgical recoveries of 87.14% and 47.86% respectively, to produce 2,452 Oz AuEq.
  • MAG Silver Corp., announced Q3, 2022 production and financial results from its Juanicipio project in Zacatecas, where it owns 44% of the property and Fresnillo plc owns the remainder 56%. The company reported on a 100% basis, that 180,808 tonnes of 513 g/t Ag were processed through the Fresnillo and Saucito plants to produce 2.42M Oz Ag, 4,901 Oz Au, 3M Lb Pb, and 4.56M Lb Zn. MAG reported a net income of USD $8.23M and cash of $USD 39.5M (Juanicipio had cash on hands of $USD 18.2M). Pre-commercial production sales totaled USD $49.7M, less USD $18.1 in mining and transportation costs and USD $6.4M in depreciation and amortization charges, netting USD $25.2M in gross profit by Juanicipio. The company also reported a cash balance at the end of the quarter of USD $18.2M down from USD $37.5M at the end of Q2, 2022.
  • US Antimony Corporation reported September-October production results. The company milled 1,116 tonnes of 0.87 g/t Au and 96 g/t Ag from its Los Juarez Mine in Querétaro. In addition, the company announced that assay results from the previously announced soil sampling and rock chip programs on the 1km x 3 km grid at Los Juarez have been received with analysis values for Sb, Au, Ag, and trace elements. These results are being tabulated and assessed. Geologist and Geophysicist in Mexico have just completed the Geophysical Survey and are in the process of interpreting the results and generating a report. This report may be available prior to Q4 but most likely will be published early in Q1 of 2023.
  • SilverCrest Metals Inc., reported Q3, 2022 production and financial results from its Las Chispas project in Sonora. The company produced 4,121 Oz Au and 373.5K Oz Ag (731.6K Oz AgEq) and had its first metal sales of 140.3K Oz Ag at an average price of USD $19.38 per Oz Ag, generating USD $2.7M in revenue. As of September 30, 2022 the company remains well-funded with cash and cash equivalents of USD $88.6M, and a debt balance of USD $90M.

ON FINANCING

  • Vizsla Silver Corp., closed its previously announced bought deal financing of 23.8M units of the company at a price of CAD $1.45 per unit for gross proceeds of $CAD 34.5M. Net proceeds will be used to advance the exploration and development of its Panuco project in Sinaloa, including the delivery of an updated mineral resource estimate in Q4, 2022, as well as for working capital and general corporate purposes.

ON RESOURCES AND DEVELOPMENT

  • Silver Tiger Metals Inc., released results from its on-going drilling program at its El Tigre project in Sonora, and provided an update on the underground rehabilitation of the El Tigre Mine. The most significant drill intercept was encountered in hole ET-22-378 with 0.12 g/t Au, 469 g/t Ag, 0.66% Cu, 0.5% Pb, and 0.6% Zn (525 g/t AgEq) over 6.5m, including 0.25 g/t Au, 1,002 g/t Ag, 0.39% Cu, 0.6% Pb, and 0.7% Zn (1,096 g/t AgEq) over 1m at the Benjamin Vein Zone, plus 0.15 g/t Au, 212 g/t Ag, 0.12% Cu, 2.5% Pb, and 6.9% Zn (524 g/t AgEq) over 6.9m, including 0.28 g/t Au, 940 g/t Ag, 0.6% Cu, 6.9% Pb, and 16.2% Zn (1,720 g/t AgEq) over 0.8m at the Shale Zone. The company also reported that the underground rehabilitation of the historic El Tigre mine is progressing well. Silver Tiger reported that to date it has rehabilitated over 450m in level 7, which was the main portal to the mine. “Silver Tiger is still on schedule to reach the Sooy Vein and then begin underground drilling of this new discovery under the Northern end of the unmined portion of the Historic El Tigre Mine”.
  • Gatos Silver Inc., announced that it has filed a NI 43-101 technical report to disclose a Mineral Resource and Mineral Reserve update for its Los Gatos project, Chihuahua.
  • Alamos Gold Inc. reported new results from its ongoing drilling program and extended high-grade mineralization at its Puerto del Aire Deposit within Mulatos district, Sonora. Puerto Del Aire is a higher-grade underground deposit, adjacent to the main Mulatos pit, and is comprised of five zones including PDA1, PDA2, Gap, Victor and Estrella. Highlights of the drilling at PDA1 Zone include hole 21MUL051 with 32.24 g/t Au uncut ( 20.78 g/t Au cut) over a  true width (TW) of 5.30m; hole 21MUL019 with 4.26 g/t Au over a TW of 2.25m, plus 26.28 g/t Au uncut (20.44 g/t Au cut) over a TW of 4.60m; hole 21MUL014 with 4.43 g/t Au over a TW of 4.50m, plus 18.01 g/t Au uncut (15.27 g/t Au cut) over a TW of 6.15m; hole 21MUL016 with 3.64 g/t Au over a TW of 6m, plus 3.02 g/t Au over a TW of 1.50m, plus 3.12 g/t Au over a TW of 11.50m, plus 3.63 g/t Au over a TW of 26.05m; hole MUL21021 with 10.66 g/t Au over a TW of 5.90m, plus 4.20 g/t Au over a TW of 12.25m, plus 14.57 g/t Au over a TW of 2.75m, plus 10.86 g/t Au over a TW of 8.35m; and hole 21MUL015 with 4.90 g/t Au over a TW of 1.15m, plus 6.78 g/t Au over a TW of 10.50m, plus 4.99 g/t Au over a TW of 1.40m. Highlights of the drilling at PDA2 Zone include hole 22MUL039 with 4.06 g/t Au over a TW of 0.85m, plus 13.89 g/t Au uncut (9.26 g/t Au cut) over a TW of 10.35m; hole 22MUL053 with 8.75 g/t Au over a TW of 13.15m, plus 7.7 g/t Au over a TW of 6m, plus 8.90 g/t Au over a TW of 3m, plus 4.20 g/t Au over a TW of 12.95m; hole 22MUL058 with 7.62 g/t Au over a TW of 14.65m; hole 22MUL052 with 3.07 g/t Au over a TW of 1.50m, plus 32.60 g/t Au over a TW of 2.35m, plus 10.90 g/t Au over a TW of 1.50m, plus 11.40 g/t Au over a TW of 1.50m; and hole 22MUL046 with 4.01 g/t Au over 1.70m, plus 13.22 g/t Au over 4.50m. Highlights of the drilling at Victor-Gap Zone include hole 21MUL011 with 31.97 g/t Au uncut (11.80 g/t Au cut) over a TW of 12.90m. “Drilling to date has demonstrated the significant potential to further expand high-grade mineralization at Puerto Del Aire with the deposit open in multiple directions”.
  • GoGold Resources Inc., released strong results from the new drilling program at its Los Ricos South Main Area and at the newly acquired Eagle concession in Jalisco. Highlights of the drilling include hole LRGG-22-209 collared at Los Ricos South Main Area with 3.15 g/t Au and 276 g/t Ag (6.84 g/t AuEq or 513 g/t AgEq) over 33.2m, including 30.19 g/t Au and 2,588 g/t Ag (64.69 g/t AuEq or 4,852 g/t AgEq) over 3m, including 73.10 g/t Au and 5,620 g/t Ag (148.03 g/t AuEq or 11,103 g/t AgEq) over 1m; and hole LRGG-22-043 collared at the Eagle Concession with  0.67 g/t Au and 78 g/t Ag (1.72 g/t AuEq or 129 g/t AgEq) over 8.2m, plus 1.32 g/t Au and 216 g/t Ag (4.20 g/t AuEq or 315 g/t AgEq) over 20.7m, including 2.73 g/t Au and 428 g/t Ag (8.44 g/t AuEq or 633 g/t AgEq) over 9.3m, including 7.89 g/t Au and 999 g/t Ag (21.21 g/t AuEq or 1,591 g/t AgEq) over 2.5m, including 17.20 g/t Au and 2,130 g/t Ag (45.80 g/t AuEq or 3,420 g/t AgEq) over 0.70m. The purpose of the program is to better define the very high grade portions of the current deposit that may be amenable to bulk underground mining.  “The Company exploration team has been completing detailed mapping and sampling at Jamaica over the last year and sees the same structure that was drilled in the main zone at Los Ricos South extending for several kilometers over the Jamaica concessions.  This offers the potential for an additional bulk tonnage target in Los Ricos South, with continuity from the Main Area and Eagle”.
  • Zacatecas Silver Corp., announced its initial Mineral Resource Estimate (MRE) at its Esperanza Gold project in Morelos. A summary of the MRE is shown in the table below:

ON DEALS AND CORPORATE ISSUES

  • Zacatecas Silver Corp., entered into an agreement with Gold Standard Media and with Future Money Trends LLC to raise awareness of the Company’s shares among investors.  The engagement is for 12 months of services, with amounts payable as follows: USD $100K on acceptance of the TSX Venture Exchange, USD $100K within 3 months, USD $100K within 6 months and USD $100K within 9 months.  Subject to TSX Venture Exchange acceptance, the activities will commence late November, 2022 and are for a period of one year.

ON SOCIAL RESPONSIBILITY

  • Fundación Grupo México in alliance with the Government of Jalisco, promoted the forest recovery in the Municipalities of Sayula, Encarnación de Díaz and Ocotlán through the Ministry of Environment and Territorial Development (SEMADET) in coordination with the Intermunicipal Boards of the Environment (JIMA) and the Jalisco Solidarity Volunteers.

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, quartz stockwork veining from a low sulphidation epithermal vein system in a project in Sonora, Mexico.  Photo by Miguel A Heredia.

Mexico’s Best Drilling Intercepts on the Third Week of November 2022

This week’s outliers were the intercepts released by Alamos Gold on the Puerto del Aire deposit in the Mulatos project in Sonora. Especially the almost 13 meters averaging over an ounce of gold per tonne, which comes to a whopping 412.4 gpt*m. These results remark the high grades that some zones of high sulfidation deposits can attain in Mexico. Aztec Minerals released good gold assays from its Cervantes project, also in Sonora, a gold-copper porphyry intruding Paleozoic sedimentary rocks.

The rest of intervals high in gold, silver, lead and zinc come from the structurally controlled low to intermediate sulfidation epithermal deposits of Los Ricos South in Jalisco and El Tigre and Alamos Silver in Sonora. The South Main and Eagle area results from Gogold’s Los Ricos South are the strongest in gold and silver in this type of deposits, whereas Silver Tiger’s and Minaurum’s drill intervals from El Tigre and Alamos Silver are stronger in lead and zinc.

The Mining and Exploration News in Mexico: Highlights on the Second Week of November 2022

By Jorge Cirett

During the 45th week of the year (November 7th to November 13th, 2022), 20 companies working in Mexico released news on their properties. One company declared commercial production, thirteen companies released Q3 2022 results and one company closed the final tranche of a private placement. Three companies presented drilling results or updated work at their advanced properties. Two companies signed a LOI on an acquisition proposal.  ON MEXICO ISSUES, no relevant news. ON EXPLORATION, no relevant news. ON MINING, SilverCrest Metals declared commercial production at Las Chispas, in Sonora. McEwen Mining, First Majestic Silver, Coeur Mining, Avino Silver & Gold Mines, Gatos Silver, Torex Gold, Fortuna Silver Mines, Pan American Silver, Golden Minerals, Endeavour Silver, Excellon Resources, Orla Mining and Americas Gold and Silver released Q3 2022 production results. ON FINANCING, Silver Viper Minerals closed an additional tranche of financing for $200 K. ON RESOURCES AND DEVELOPMENT, Guanajuato Silver Company released drill results from a new vein at El Cubo, in Guanajuato. Oroco Resource provided drill results from the South Zone at its Santo Tomás project in Sinaloa. Orla Mining updated on work at its Camino Rojo Sulphide deposit in Zacatecas aiming to evaluate its underground development options. ON DEALS AND CORPORATE ISSUES, Silver Viper Minerals and Canasil Resources signed a LOI on the proposed acquisition of the latter by Silver Viper. ON SOCIAL RESPONSIBILITY, Discovery Silver informed on awards received by its social responsibility work and achievements at the corporate and community levels.

ON MEXICO ISSUES

  • No Relevant News.

ON EXPLORATION

  • No Relevant News.

ON MINING

  • SilverCrest Metals Inc. declared commercial production on November 1, 2022 at Las Chispas mine in Sonora. During the commissioning period in September and October 62.1 K tonnes were processed at a rate of 1,019 tonnes per day (name plate design: 1,250 tpd), recovering 96.7% Au, 96.8% Ag. “Moving Las Chispas from discovery to production in less than seven years is a monumental achievement”.
  • McEwen Mining Inc. reported Q3 2022 results, with some information on its Mexican operations. A complete process plant was acquired for the Fenix project in Sinaloa, “This acquisition has made Fenix more attractive to build and could provide a new long life mine for McEwen Mining”.
  • First Majestic Silver Corp. released financial results for the third quarter 2022. During the period the company produced 2.7 M Oz Ag, 67,022 Oz Au (8.8 M Oz AgEq) at cash cost $13.34 per Oz AgEq and AISC of $17.83 per Oz AgEq. At the end of the quarter the company held cash and cash equivalents of $148.8 M and restricted cash of $101.2 M. The Table below shows the production in San Dimas (Durango), Santa Elena (Sonora) and La Encantada (Coahuila), which account for 83% of the company’s production.
  • Silver Viper Minerals Corp. closed an additional tranche of its non-brokered private placement announced in June 6 2022, for aggregate gross proceeds of $200 K (La Virginia, Sonora).

  • Coeur Mining Inc. reported third quarter 2022 financial results, including figures from its operations in Mexico. At Palmarejo, in Chihuahua, 538.7 K tonnes were milled @ 1.52 gpt Au, 110 gpt Ag, recovering 93.3% Au, 84.9% Ag to produce 24,807 Oz Au, 1.61 M Oz Ag at a cash cost of $948 per Oz Au and $12.67 per Oz Ag. Approximately 38% of Palmarejo’s gold sales were sold under its gold stream agreement at a price of $800 per Oz Au. “Full-year 2022 production is expected to be 100,000 – 110,000 ounces of gold and 6.0 – 7.0 million ounces of silver”.
  • Avino Silver & Gold Mines Ltd. released financial results for the third quarter 2022. At the Avino mine in Durango, 162.2 K tonnes were milled to produce 285.4 K Oz Ag, 1,202 Oz Au, 2.1 M Lb Cu, at cash cost $10.29 per Oz AgEq and an AISC of $17.32 per Oz Ag. The company has budgeted 15,000 m of drilling in 2022, focusing on the area at depth below the current Elena Tolosa mining area.
  • Gatos Silver Inc. reported operating financial results for Q3 2022. At Cerro Los Gatos mine, in Chihuahua, 263.3 K tonnes were milled @ 356 gpt Ag, 0.34 gpt Au, 2.38% Pb, 4.70% Zn, containing 2.70 M Oz Ag, 1,400 Oz Au, 12.2 M Lb Pb, 17.8 M Lb Zn and recoveries of 89.6% Ag, 48.9% Au, 88.5% Pb, 65.4% Zn. By the period’s end, the company had a cash balance of $15 M and debt outstanding of $13 M.
  • Torex Gold Resources Inc. reported financial and operational results for Q3 2022. At El Limón-Guajes, in Guerrero, 122,208 Oz Au were produced at cash cost $760 and an AISC of $1,059 per Oz Au. “Cash flow from operations totalled $102.4 million and $91.3 million prior to changes in non-cash operating working capital. Cash flow from operations includes $19.2 million of income taxes paid”. Expenditures at the adjacent Media Luna project totaled $32.5 M in the quarter, with a remaining project spend of $812.4 M. The needed Media Luna environmental permit (MIA) was approved by SEMARNAT.
  • Fortuna Silver Mines Inc. reported its financial and operating results for the third quarter of 2022, including figures from its Mexican operations. At the San José mine in Oaxaca, 267.2 K tonnes were milled at an average rate of 3,071 tonnes per day (tpd), grading 196 gpt Ag, 1.16 gpt Au, recovering 92% Ag, 91% Au to produce 1.54 M OZ Ag, 9,091 Oz Au at cash cost $9.70 per Oz AgEq and an AISC of $14.23. The net cash was affected by the “$12.6 million payment including taxes for the settlement of the disputed royalty claim with the Mexican Geological Survey”.
  • Pan American Silver Corp. reported results for the third quarter 2022, without expanding on figures by region.
  • Golden Minerals Co. provided financial results for Q3 2022. The Rodeo mine in Durango produced 2,972 Oz Au, 11.9 K Oz Ag with cash cost of $1,391 per Oz AuEq. At Velardeña, in Durango, evaluation of modified mine plans, including ore sorting technology.  At Yoquivo, in Chihuahua, a 5,693 m drill program in 24 holes was completed and is currently conducting a 3,000 m drill program, planning on the completion of a maiden resource estimate for Q1 2023. Golden ended the quarter with a cash balance of $6.5 M.
  • Endeavour Silver Corp. announced financial and operating results for Q3 2022. The company has the Guanaceví mine in Durango and the Bolañitos mine in Guanajuato. Consolidated production (no details provided) was 1.46 M Oz Ag, 9,194 Oz Au (2.2M Oz AgEq) at cash cost $10.32 per Oz Ag, and an AISC of $20.27 per Oz Ag. The company has a cash position of $69.2 M and $101.6 M in working capital. Work at the Terronera project in Jalisco includes “detailed engineering, critical contracts, procurement of long-lead items and road and camp construction…. Budgeted development expenditures for 2022 are estimated to be $41.0 million”. Also, during the period was completed the acquisition of the La Pitarrilla project in Durango and the sale of El Compas mine in Zacatecas.
  • Excellon Resources Inc. reported financial results for the Q3 2022. At Platosa, in Durango, 23.8 K tonnes were mined, 22.7 K tonnes milled @ 442 gpt Ag, 3.69% Pb, 3.14% Zn, recovering 92.5% Ag, 76.9% Pb, 78.9% Zn, to produce 298.1 K Oz Ag, 1.2 M Lb Pb, 1.24 M Lb Zn (459.8 K Oz AgEq), at cash cost $9.78 per Oz AgEq and an AISC of $14.31 per Oz AgEq. “Mine activity in Q3 2022 focused on remnant development and extraction, pillar recovery and minimal mining of fresh mineral. Wind down activities continued in Q3 to minimize the work associated with care and maintenance required in Q4 2022”.
  • Orla Mining Ltd. announced its results for the third quarter 2022. During the period the Camino Rojo Oxide project produced 28,876 Oz Au at cash cost $452 and all-in sustaining costs of $594 per Oz Au. The plant’s throughput averaged 19,200 tpd, or 107% of nameplate capacity. By the end of the period the company held $89.1 M in cash and a net debt of $77.5 M.
  • Americas Gold and Silver Corp. reported financial and operational results, including figures from its Mexican operations. At Cosalá, in Sinaloa, 186 K Oz Ag, 9.4 M Lb Zn, 3.8 M Pb were produced. “Cash costs per silver ounce and all‐in sustaining costs per silver ounce were negative $4.43 and positive $4.35, respectively”.

ON FINANCING

  • Silver Viper Minerals Corp. closed an additional tranche of its non-brokered private placement announced in June 6 2022, for aggregate gross proceeds of $200 K (La Virginia, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Guanajuato Silver Company Ltd. provided drill results that confirm a new transverse vein at El Cubo mine in Guanajuato. Highlighted true width intervals comprise 0.85 m @ 3.54 gpt Au, 398 gpt Ag; 1.29 m @ 0.79 gpt Au, 102 gpt Ag; 0.90 m @ 0.82 gpt Au, 112 gpt Ag; 0.92 m @2.15 gpt Au, 278 gpt Ag; 1.28 m @1.70 gpt Au, 205 gpt Ag. “The San Luis vein runs perpendicular to the primary regional north-west Villalpando and Dolores mineralized vein structures, and like other transverse veins at El Cubo, the San Luis vein is anticipated to often carry proportionally higher gold content”.
  • Oroco Resource Corp. released assay results for three holes testing the South zone at its Santo Tomás project in Sinaloa. The total strike length of mineralization extends now for 3.2 Km, with 0.5 km more open for extension to the south. Highlighted core length intervals comprise 271 m @ 0.33% Cu, 0.029 gpt Au, 2.6 gpt Ag; 34 m @ 0.26% Cu, 0.9 gpt Ag; 140 m @ 0.23% Cu, 1.8 gpt Ag; 277.4 m @ 0.36% Cu, 0.026 gpt Au, 2.6 gpt Ag. Twelve holes have been completed to date on the South zone and 41 holes (27,004 m) in the North zone.
  • Orla Mining Ltd. updated on work at its Camino Rojo Sulphide project in Zacatecas (below its Camino Rojo Oxide project currently in production). Previous operators envisioned a large open pit mining scenario for disseminated low-grade sulfides, with high capital costs for a large processing facilities and extensive material handling. Orla has been assessing the existence of higher-grade smaller ore shoots with the potential to sustain a more targeted underground development. Drilling has intercepted mineralization grading more than 2 gpt Au over more than 30 m in the five holes with results so far.

ON DEALS AND CORPORATE ISSUES

  • Silver Viper Minerals Corp. and Canasil Resources Inc. entered into a non-binding letter of intent in November 6, 2022, with respect of the proposed acquisition by Silver Viper of all outstanding shares of Canasil, in exchange for common shares of Silver Viper. Canasil shareholders will receive one (1) common share of Silver Viper by for every four (4) Canasil shares held. At the closing of the proposed transaction Canasil will have the right to nominate one member of the board of directors of Silver Viper. Furthermore, Silver Viper will be required to complete a financing for at least C$1 M and Canasil a financing for at least C$260 K. Silver Viper holds La Virginia project in Sonora, whereas Canasil owns the Sandra, Nora, Vizcaino, Salamandra and Colibri projects in Durango, and the La Esperanza project in Zacatecas.

ON SOCIAL RESPONSIBILITY

  • Discovery Silver Corp. received its official ESR Distinction, issued by the Mexican Center for Philanthropy “to organizations that have demonstrated they operate in a socially and environmentally responsible manner”. The company also received the Great Place to Work Certification, the Clean Industry Certification emitted by PROFEPA (Federal Attorney’s Office for Environmental Protection) and the Safe Industry Certification Level 1 issued by the Mexican Government’s Secretary of Labor.

On the image below Quartz veinlet stockwork in limestone on a project in the Sonoran Desert. Picture by Jorge Cirett.

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

Fault Plane showing slickensides

By Miguel A Heredia

During the 44th week of the year (October 31st to November 06th, 2022), at least 21 press releases were announced by companies working in Mexico, and 2 news published by the media with six reporting resources and developments of their properties, six disclosing deals and corporate issues, five informing on exploration results, three commenting on Mexican issues, two announcing financing issues, and one communicating production and financial issues. ON MEXICO ISSUES, The Canadian government has told its Mexican counterpart that it is concerned about the investment climate in Mexico’s energy and mining sectors. The President of Mexico, Andres Manuel López Obrador stated that the rescue efforts of the bodies of 10 miners who were trapped in the El Pinabete mine, in Sabinas, Coahuila, were suspended due to a change of supplier. GoGold, GR Silver, Pan American Silver, and Southern Silver reported the best drilling intercepts in Mexico on the first week of November, 2022. ON EXPLORATION, In Sonora, Ranchero Gold provided an exploration update on its Daniela project, and Reyna Gold announced results from its on-going, district-scale exploration program at its La Gloria property. In Sinaloa, Prismo signed a definitive surface agreement with the Francisco Villa Ejido and commenced drill permitting for its Los Pavitos project. In Jalisco, Almadex mobilised an exploration team to commence a follow-up drill program at its San Pedro project. In Coahuila, Monumental provided an update of its currently on-going exploration program at its Jemi project. ON MINING, Capstone reported Q3, 2022 production and financial results from its Cozamine mine in Zacatecas. ON FINANCING, Kootenay increased its previously announced private placement from $4M to $4.35M, and granted an option to Red Cloud Securities Inc, to offer for sale an additional 15% of the number of units of the company at a price of $0.09 per unit (Columba project, Chihuahua). Xali Gold received advance net profits interest payment from Sun River Gold for the El Orito Tailings project in the State of Mexico.  ON RESOURCES AND DEVELOPMENT, Sonoro Gold announced that it has engaged SRK to prepare an NI43-101 compliant updated Mineral Resource Estimate for its Cerro Caliche project in Sonora. GoGold reported results from the second set of drill holes collared at the newly acquired Eagle concession on the Los Ricos South property in Jalisco. GR Silver released results from 38 infill drill holes in the resource update program underway at its Plomosas mine area in Sinaloa. Osisko provided an operational update on its San Antonio Gold project in Sonora. Pan American release results from 45 new infill and exploration drill holes collared at its La Colorada Skarn project in Zacatecas. Southern Silver announced results from its final 4 drill holes at its Cerro Las Minitas, Durango. ON DEALS AND CORPORATE ISSUES, Silverton Metals announced that its Board of Directors approved a change of the company’s name to Lodestar Battery Metals Corp (Peñasco Quemado project, Sonora). Ranchero Gold appointed its interim CEO and CFO (Santa Daniela project, Sonora). Pan American and Agnico delivered definitive binding offer to acquire Yamana. Sierra Madre entered into an amendment and restated the share purchase agreement with First Majestic in respect of the previously announced acquisition of La Guitarra mine in the State of Mexico.  Sierra Metals received letter of intent from Compañía Minera Kolpa for a proposed business combination. Xali Gold increased its ownership in the San Dieguito de Arriba plant in Nayarit from 30% to 50% by issuing 4,125,758 shares at a price of $0.066 to Magellan.  ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUE

  • The Canadian government has told its Mexican counterpart that it is concerned about the investment climate in Mexico’s energy and mining sectors. Mary Ng, Minister of International Trade, Export Promotion, Small Business and Economic Development of Canada, expressed this position to Raquel Buenrostro, Secretary of the Economy of Mexico. Minister Ng reaffirmed Canada’s commitment to advance in the implementation of the Treaty between Mexico, the United States and Canada (T-MEC) and to continue with the work carried out within the framework of initiatives such as the Economic Dialogue of Canada-Mexico High Level to deepen bilateral business, trade and investment ties and support inclusive and resilient economic growth. Two-way merchandise trade between the two countries was USD $41.7 billion in 2021. Mexico is Canada’s third-largest merchandise trading partner in a single country (after the United States and China).
  • The President of Mexico, Andres Manuel López Obrador stated that the rescue efforts of the bodies of 10 miners who were trapped in the El Pinabete mine, in Sabinas, Coahuila, were suspended due to a change of supplier, but will be resumed.
  • GoGold Resources Inc., , GR Silver Mining Ltd.,  Pan American Silver Corp.,  and Southern Silver Exploration Corp., reported the best drilling intercepts in Mexico on the first week of November. Details are shown in the table below:

ON EXPLORATION

  • Ranchero Gold Corp., provided an exploration update on its Daniela project in Sonora. The company reported that it has completed the follow-up work of the nine priority targets previously identified at the property. Ranchero Gold stated that the San Francisco, Carboneras Sur, Carboneras Este, Rincón, and Moritas Este targets have shown evidence of gold mineralization, related alteration and lithologies known to host significant gold deposits in the district. “Subsequent field efforts currently underway will include detailed mapping, systematic sampling and drone-based magnetic surveys designed to identify potential mineralized host rocks below surface”.
  • Reyna Gold Corp., announced results from its on-going, district-scale exploration program at its La Gloria property in Sonora. The company identified multiple mineralized zones with high grade gold, silver, and copper that align with major geophysical anomalies, silica alterations, and structural controls on the property. Highlights of the 8 rock sampling collected at La Republicana Zone returned values from 4.03 g/t Au up to 56.90 g/t Au; 7 samples ranging from 13 g/t Ag up to 47 g/t Ag; and 2 samples with 0.2% Pb and 0.5% Pb, with a single assay of 2.41% Cu. At Las Carmelitas zone, 7 rock samples returned 3 values of 0.11 g/t Au, 0.33 g/t Au, and 10.52 g/t Au; 5 samples ranging from 67 g/t Ag up to 116 g/t Ag; and 6 samples ranging from 1.53% up to 2.25% Cu. At Western Zone, 7 rock samples returned values from 2.51 g/t Au up to 16.60 g/t Au; 2 samples with values of 21g/t Ag and 249 g/t Ag; and a single sample with 1.15% Cu, 3.4% Zn, 1.3% Pb, 0.1 g/t Au, and 27 g/t Ag. At El Sombrero Zone, 7 samples returned gold values ranging from 1.1 g/t Au up to 23.6 g/t Au; 4 samples ranging from 149 g/t Ag up to 733 g/t Ag; 4 samples ranging from 0.68% up to 3.60% Cu; 4 samples ranging from 0.2% Pb up to 1.4% Pb, and 4 samples ranging from 0.1%Zn to 0.2% Zn. The company is presently conducting an IP survey at four target zones: La Republicana, Western, Las Carmelitas, and Main Zone. After completion of the IP geophysical survey, drilling will recommence in this area focused on La Republicana, Western, Las Carmelitas and Main Zone targets.
  • Prismo Metals Inc., signed a definitive surface agreement with the Francisco Villa Ejido, the surface owners over the Los Pavitos project in Sinaloa. This agreement is for two years and allows Prismo to carry out exploration work including drilling. The company has commenced drill permitting planned to begin in early 2023. Meanwhile, Prismo will continue with the geological mapping and sampling program to cover the remaining area to identify drill targets.
  • Almadex Minerals Ltd., mobilised an exploration team to commence a follow-up drill program at its San Pedro project in Jalisco. The drill program will target a recently identified structural trend associated with float rock of vein material, soil anomalies and old mining workings, where channel sampling has encountered 0.02 g/t Au and 138 g/t Ag over an interval of 6.8m, and 3.7 g/t Au and 168 g/t Ag over an interval of 4.2m. A total of 14 grab and chip samples collected on this trend averaged 0.6 g/t Au and 180 g/t Ag.
  • Monumental Minerals Corp., provided an update of its currently on-going exploration program at its Jemi project in Coahuila, which consists of detailed geological mapping, regional stream sediment sampling, ground radiometric geophysical surveys, and litho geochemistry. To date, the stream sediment sampling program, consisting of 47 samples has been completed. It returned 5 samples with values greater than 7.8 ppm dysprosium (Dy), 65.3 ppm neodymium (Nd); and up to 14.1 ppm Dy and 160 ppm Nd, defining four general areas of interest along the west and south portions of the company’s concessions, of which two are associated with known HREE mineralized (eudialyte bearing) peralkaline rock (Jemi Dyke Area and Veladora North). The remaining two areas with anomalous Dy and Nd concentrations were previously unrecognized as being prospective (Zone 2 and Zone 4). Follow-up exploration work to identify the source of the high REEs at these two areas will be undertaken during the current field program for quick delineation.

ON MINING

  • Capstone Copper Corp., reported Q3, 2022 production and financial results from its Cozamine mine in Zacatecas. The company mined 3,829 tonnes per day with an average grade of 1.86% and metallurgical recovery of 96.8%, to produce 36.74 M Lb Cu at a cash cost of USD $1.20 per Lb produced.

ON FINANCING

  • Kootenay Silver Inc., increased its previously announced private placement from $4M to $4.35M, and granted an option to Red Cloud Securities Inc, to offer for sale an additional 15% of the number of units of the company at a price of $0.09 per unit. If the offer for sale from Red Cloud is exercised in full, the total gross proceeds to the company will be $5M (Columba project, Chihuahua).
  • Xali Gold Corp., received advance net profits interest (NPI) payment from Sun River Gold, LLC for the El Orito Tailings project in the State of Mexico. Sun River has started making advance NPI payments of USD $15K per month to Xali Gold as part of the second extension agreement on the El Oro Tailings project, in El Oro, State of Mexico. Advanced NPI payments of USD $50K per month will be paid by Sun River once commercial production is reached (or first concentrate is produced or dore gold is poured) and during the first year of operation, after which normal 5% NPI payments are to be made.

ON RESOURCES AND DEVELOPMENT

  • Sonoro Gold Corp., announced that it has engaged SRK Consulting Inc., to prepare an NI43-101 compliant updated Mineral Resource Estimate for its Cerro Caliche project in Sonora. This updated Mineral Resource Estimate is to include an additional 7,200m of drilling completed in May 2022 which returned multiple higher grade gold intercepts and expanded several known mineralized gold zones within the concession.
  • GoGold Resources Inc., reported results from the second set of drill holes collared at the newly acquired Eagle concession on the Los Ricos South property in Jalisco. Highlights of the drilling include hole LRGAG-22-035 with 1.64 g/t Au and 265 g/t Ag (5.17 g/t AuEq or 387 g/t AgEq) over 110.6m, including 11.31 g/t Au and 2,198 g/t Ag (40.62 g/t AuEq or 3,047 g/t AgEq) over 11.5m, including 30.24 g/t Au and 6,392 g/t Ag (115.48 g/t AuEq or 8,661 g/t AgEq) over 3.5m, including 63.24 g/t Au and 12,729 g/t Ag (232.96 g/t AuEq or 17,472 g/t AgEq) over 1.5m, including 104.50 g/t Au and 13,742 g/t Ag (287.73 g/t AuEq or 21,580 g/t AgEq) over 0.90m; and hole LRGAG-22-032 with 1.36 g/t Au and 108 g/t Ag (2.79 g/t AuEq or 210 g/t AgEq) over 65.8m, including 2.96 g/t Au and 217 g/t Ag (5.85 g/t AuEq or 439 g/t AgEq) over 28.1m, including 7.17 g/t Au and 1,013 g/t Ag (20.68 g/t AuEq or 1,551 g/t AgEq) over 4.3m, including 25 g/t Au and 3,020 g/t Ag (65.27 g/t AuEq or 4,895 g/t AgEq) over 0.6m. “Mapping and geophysics indicate the Eagle structure extending in excess of 2.5km to the northwest, at which point it continues onto the Company’s previously owned Jamaica concessions”. “The Eagle concession connects the Company’s concessions held in the southern portion of its Los Ricos South project, including the Main area where the Initial Resource was released, to its northern concessions in Los Ricos South, which includes the Jamaica exploration target.  As a result, all of the concessions in Los Ricos South are now contiguous”. This offers the potential for an additional bulk tonnage target in Los Ricos South, with continuity from the Main Area and Eagle.
  • GR Silver Mining Ltd., released results from 38 infill drill holes in the resource update program underway at its Plomosas mine area in Sinaloa. Highlights of the drilling include hole PLI22-38 with 301 g/t Ag, 0.41 g/t Au, 1.6% Pb, and 2.1% Zn (471 g/t AgEq) over a true width (TW) of 15.9m, including 856 g/t Ag, 0.70 g/t Au, 1.3% Pb, and 2.3% Zn (1,052 g/t AgEq) over a TW of 3.9m; hole PL!22-23 with 268 g/t Ag, 1 g/t Au, 2.4% Pb, 1.7% Zn, and 0.2% Cu (518 g/t AgEq) over a TW of 36.5m, including 626 g/t Ag, 0.03 g/t Au, 1% Pb, 0.6% Zn, and 0.1% Cu (684 g/t AgEq) over a TW of 4.9m, plus 1028 g/t Ag, 5.11g/t Au, 8.3% Pb, 7% Zn, and 0.9% Cu (2,101 g/t AgEq) over a TW of 5.9m, including 2,667 g/t Ag, 1.27 g/t Au, 12.2% Pb, 6.9% Zn, and 0.3% Cu (3,431 g/t AgEq) over a TW of 2.2m; hole PLI22-24 with 1,159 g/t Ag, 0.53 g/t Au, 1.4% Pb, 1% Zn, and 0.8% Cu (1,354 g/t AgEq) over a TW of 0.20m, plus 135 g/t Ag, 0.39 g/t Au, 4% Pb, 1.7% Zn, and 0.2% Cu (365 g/t AgEq) over a TW of 7.1m, including 292 g/t Ag, 0.13 g/t Au, 3.1% Pb, 1.3% Zn, and 0.1% Cu (453 g/t AgEq) over a TW of 2m; hole PLI22-25 with 629 g/t Ag, 0.56 g/t Au, 9.2% Pb, 4% Zn, and 0.4% Cu (1,146 g/t AgEq) over a TW of 11.4m, including 1,791 g/t Ag, 0.23 g/t Au, 1.3% Pb, 1.4% Zn, and 0.1% Cu (1,917 g/t AgEq) over a TW of 1.4m; hole LP122-27 with 109 g/t Ag, 0.91 g/t Au, 3.5% Pb, 1.7% Zn, and 0.1% Cu (371 g/t AgEq) over a TW of 7.2m, including 212 g/t Ag, 2.74 g/t Au, 10.9% Pb, 4.1% Zn, and 0.22 % Cu (961 g/t AgEq) over a TW of 2.1; hole PLI22-30 with 344 g/t Ag, 0.04 g/t Au, 0.2% Pb, 0.3% Zn, and 0.1% Cu (370 g/t AgEq) over a TW of 1m, plus 2,251 g/t Ag, 0.12 g/t Au, 1.1% Pb, 0.1% Zn, and 0.6% Cu (2,365 g/t AgEq) over a TW of 0.5m, plus 1,697 g/t Ag, 0.21 g/t Au, 0.2% Pb, 0.2% Zn, and 0.6% Cu (1,792 g/t AgEq) over a TW of 0.1m, plus 134 g/t Ag, 0.05 g/t Au, 0.6% Pb, 2.7% Zn, and 0.1% Cu (273 g/t AgEq) over a TW of 3m, including 328 g/t Ag, 0.08 g/t Au, 1.1% Pb, 5% Zn, and 0.2% Cu (576 g/t AgEq) over a TW of 0.9m; hole PLIP22-30 with 69 g/t Ag, 2.67 g/t Au, 0.1% b, 0.2% Zn, and 0.2% Cu (353 g/t AgEq) over a TW of 10.8m, including 227 g/t Ag, 5.39 g/t Au, 0.3% Pb, 0.6% Zn, and 0.4% Cu (809 g/t AgEq) over a TW of 1.2m, plus 219 g/t Ag, 40.18 g/t Au, 0.3% Pb, and 1% Cu (4,074 g/t AgEq) over a TW of 0.5m; and hole PLIP22-42 with 40 g/t Ag, 0.9 g/t Au, 10.5% Pb, 9.8% Zn, and 0.4% Cu (852 g/t AgEq) over a TW of 6.5m. “GR Silver Mining’s infill drilling program is continuing in the Plomosas Mine Area, and to date has added 105 holes (7,330 m) of new drilling inside the historic Plomosas Mine since completion of the Company’s 2021 NI 43-101 mineral resource estimation”.
  • Osisko Development Corp., provided an operational update on its San Antonio Gold project in Sonora. The company reported that 1.1M tonnes of 0.58 g/t Au and 0.25 g/t Ag have been placed on the heap leach pad for an estimated total of 20,090 oz of Au and 8,818 oz of Ag. Osisko also reported that 10,149 Oz Au and 3,516 Oz Ag at recoveries to the end of the third quarter of 2022 of 50.5% for gold and 39.9% for silver total production have been produced from the heap leach pad as of October 27, 2022, of which 7,350 Oz Au were sold.
  • Pan American Silver Corp., release results from 45 new infill and exploration drill holes collared at its La Colorada Skarn project in Zacatecas. Highlights of the drilling are shown in the table below:

With the inclusion of these new drill holes, this area has been expanded to measure approximately 200 metres in diameter and up to 250 metres vertically.

  • Southern Silver Exploration Corp., announced results from its final 4 drill holes on the North Felsite-North Skarn targets at its Cerro Las Minitas, Durango. Highlights of the drilling include hole 22CLM-194 with 140 g/t Ag, 0.04 g/t Au, 0.01% Cu, 1.9% Pb, and 0.1% Zn (212 g/t AgEq or 5.2% ZnEq) over a true width (TW) of 2.3m, plus 386 g/t Ag, 0.17 g/t Au, 0.25% Cu, 6% Pb, and 4.7% Zn (827 g/t AgEq or 20.1% ZnEq) over a TW of 0.7m, plus 336 g/t Ag, 0.14 g/t Au, 0.16% Cu, 6.5% Pb, and 4.7% Zn (780 g/t AgEq or 18.9% ZnEq) over a TW of 2.6m, including 746 g/t Ag, 0.09 g/t Au, 0.12% Cu, 17.1% Pb, and 13.2% Zn (1,904 g/t AgEq or 46.3% ZnEq) over a TW of 0.6m; and hole 22CLM-193 with 124 g/t Ag, 0.02 g/t Au, 0.03% Cu, 1.4% Pb, and 0.4% Zn (195 g/t AgEq or 4.7% ZnEq) over a TW of 5.6m, including 219 g/t Ag, 0.02 g/t Au, 0.04% Cu, 2.5% Pb, and 0.6% Zn (333 g/t AgEq or 8.1% ZnEq) over a TW of 3m. “Drilling on these targets, which started in September 2021, has now tested a 400 metre strike-length of mineralization which wraps around the eastern and northern perimeter of the Central Intrusion and links previously identified mineralization in the Mina La Bocona and Skarn Front deposits. Twenty-five holes totaling 11,275 metres were completed in the two target areas to depths of up to 450 metres below surface”.

ON DEALS AND CORPORATE ISSUES

  • Silverton Metals Corp., announced that its Board of Directors approved a change of the company’s name to Lodestar Battery Metals Corp., to better reflects the company’s focus on exploration and development of lithium and silver projects (Peñasco Quemado project, Sonora).
  • Ranchero Gold Corp., made the appointments of its interim CEO and CFO (Santa Daniela project, Sonora).
  • Pan American Silver Corp. and Agnico Eagle Limited delivered definitive binding offer to acquire Yamana Gold Inc. Pan American would acquire all of the issued and outstanding common shares of Yamana, and Yamana would sell certain subsidiaries and partnerships which hold Yamana´s interest in its Canadian assets to Agnico Eagle, including the Canadian Malartic mine. “The consideration consists of 153,539,579 common shares in the capital of Pan American (“Pan American Shares”); USD$1.0 billion in cash contributed by Agnico Eagle; and 36,089,907 common shares in the capital of Agnico Eagle (“Agnico Eagle Shares”). Under the Binding Offer, each Yamana Share would be exchanged for approximately USD$1.04 in cash, 0.1598 Pan American Shares and 0.0376 Agnico Eagle Shares, for an aggregate value of USD$5.02 per Yamana Share based on the closing price of each Pan American Share and Agnico Eagle Share on November 3, 2022. The Binding Offer is not subject to any financing condition or additional due diligence”.
  • Sierra Madre Gold and Silver Ltd., entered into an amendment and restated the share purchase agreement with First Majestic Silver Corp., in respect of the previously announced acquisition of La Guitarra mine in the State of Mexico. The amendment states that (a) the 2% net smelter return royalty on La Guitarra will now be granted by Compañía Minera La Guitarra S.A. de C.V., to First Majestic prior to closing of the transaction, rather than rather than concurrently with closing as previously anticipated; and (b) certain governmental approvals will be required prior to closing of the transaction. All other material terms of the transaction remain unchanged. The company expects to complete the transaction by the end of 2022.
  • Sierra Metals Inc., received letter of intent from Compañía Minera Kolpa S.A. for a proposed business combination. A Special Committee of the independent members of Sierra Metals´ Board of Directors is exploring, reviewing and considering financing, restructuring and strategic options in the best interest of Sierra Metals.
  • Xali Gold Corp., increased its ownership in the San Dieguito de Arriba (SDA) plant in Nayarit from 30% to 50% by issuing 4,125,758 shares at a price of $0.066 to Magellan. The company also informed that has received interest from third parties desiring to enter into JV in the SDA plant and near-surface high grade mineralization near the plant.

ON SOCIAL RESPONSIBILITY

  • No relevant news.

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 fault plane from an intermediate-sulphidation epithermal Au-Ag-Pb-Zn vein system in a project in Zacatecas, Mexico.  Photo by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the Fourth Week of October 2022

By Jorge Cirett

During the 43rd week of the year (October 24th to October 30th, 2022), 17 companies working in Mexico released news on their properties. Three companies posted exploration advances on their projects, three companies released Q3 2022 results, one company closed the first tranche of a private placement, one is newly trading at another Stock Exchange and one more expanded on the deferment of payment on the acquisition of a mine. Three companies presented Q3 2022 results. Six companies presented drilling results on their advanced properties. One Company is acquiring a large adjoining land package adjacent to its project and one more expanded on a legal suit regarding the illegal transfer of several of its mining concessions.  ON MEXICO ISSUES, mining companies at the BMV are taking a pounding due to reduced production, inflation and lower metal prices. The AIMMGM is asking the government for increase security and raised the danger of explosives theft. ON EXPLORATION, in Sonora, Aztec Minerals released drilling results from its Cervantes project; Colibri Resource resumed exploration at Evelyn. In Nayarit, Angel Wing Metals updated on exploration at El Grande. ON MINING, Mag Silver, Agnico Eagle Mines and Alamos Gold released Q3 2022 production results. ON FINANCING, Capitan Mining closed the first tranche of its non-brokered private placement for $2.6 M gross proceeds. Guanajuato Silver Company is now on the Apex segment of the Aquis Stock Exchange. Bear Creek Mining reached an agreement to defer the payment of the Mercedes mine in Sonora for two years. ON RESOURCES AND DEVELOPMENT, Prime Mining released drilling results from Los Reyes in Sinaloa. Oroco Resources presented assays from drilling at Sant Tomás, in Sinaloa. Silver Tiger presented results from drilling El Tigre and Sooy veins at El Tigre, in Sonora. Vizsla Silver reported results from 12 holes on La Luisa vein at its Panuco project in Sinaloa. Defiance Silver updated on the drill program at the Veta Grande vein system of the Zacatecas Silver project in Zacatecas. Silver Dollar reported the last assays from drilling of La Noria zone at La Joya project in Durango . ON DEALS AND CORPORATE ISSUES, Angel Wing Metals entered into a binding agreement to acquire a large land package adjacent to its El Grande project in Nayarit. Defiance Silver initiated a case “against the illegally and fraudulently transferred mineral concessions concerning its Tepal Project” in Michoacan. ON SOCIAL RESPONSIBILITY, Agnico Eagle and Alamos Gold presented information on their social responsibility work and achievements at the corporate and community levels.

ON MEXICO ISSUES

  • Mining companies in the BMV (Bolsa Mexicana de Valores) had a negative Q3 2022 due to inflation and lower metal prices. Grupo México reported a 34.7% year to year fall in Q3 2022 of EBITDA and a 24.4% decline in share price to a 6.6% reduction in copper production and a 18.6% drop in the red metal price. Total copper production was 256.3 K tonnes in the period. Industrias Peñoles EBITDA is 18.5% lower in the same period, as well as a 10.9% drop in the share price.
  • The AIMMGM (Asociación de Mineros, Metalurgistas y Geólogos de México) asked for government intervention to increase security on their operations. States with the strongest mining tradition like Chihuahua, Estado de México, Guerrero, Guanajuato, Sonora and Zacatecas are among those with greater insecurity perception ratings. Companies in some states spend up to 2% of their total budget in security, and some companies have reported to the government their compliance with racketeering schemes to be able to operate. The risk posed by the increase in the theft of explosives was also raised.  

ON EXPLORATION

  • Aztec Minerals Corp. completed the phase 3 core drilling program at the Cervantes project in Sonora. Eleven core hole totaled 2,515.5 m of drilling at the California, California North and Jasper targets. Highlighted core length results comprise 9.0 m @ 1.72 gpt Au; 16.5 m @ 0.34 gpt Au; 26.7 m @ 0.54 gpt Au, 7.5 m @0.43 gpt Au; 46.5 m @ 0.44 gpt Au; 5.65 m @0.25 gpt Au. “… the gold mineralization appears to be widely distributed in disseminations, fractures and veinlets at high levels within in a Quartz-feldspar porphyry intrusive complex and related hydrothermal breccias”.
  • Angel Wing Metals Inc. updated on the exploration program at El Grande project after the acquisition of the adjoining La Reyna land package in Nayarit (See Deals and Corporate Issues below). “The first phase of greenfield exploration has focused on the near surface low sulphidation exploration potential, starting with regional geological mapping and prospecting, structural and alteration mapping, outcrop chip and channel sampling rock sampling, and environmental baseline studies. Detailed mapping and sampling of selected targets are prioritised for grid soil and outcrop sampling programs and drilling…. An airborne geophysical survey is proposed with follow-up ground geophysics on selected targets pending receipt of permits. The results from this work will be used to design a Phase One 3,000 metre diamond drill program to commence in late Q4 2022 or Q1 2023, once updated drill permits including the newly acquired claims are received.
  • Colibri Resource Corp. has resumed exploration at its Evelyn property in Sonora. Soil samples are currently being collected by geologists on site, and an application for drilling and trenching was submitted to SEMARNAT. One program of reverse circulation (RC) drilling comprises 2,000 m in five holes to test a chargeability and resistivity anomalies and a second program is to explore under alluvial cover, comprising several short, closely spaced holes to penetrate the alluvium and sample the top of the bedrock

ON MINING

  • Mag Silver Corp. reported third quarter 2022 production from the Juanicipio project (56% Fresnillo PLC, 44% Mag Silver) in Zacatecas. On a 100% basis, 180.8 K tonnes of underground development and initial stopes were processed during the period, to produce 2.62 M Oz Ag, 5,422 Oz Au (Mag’s attributable 44% interest: 1.15 M OZ Ag, 2,386 Oz Au). “Mineralized material from Juanicipio continues to be processed through the nearby Saucito (70%) and Fresnillo beneficiation plants (30%) which are owned by Fresnillo PLC.
  • Agnico Eagle Mines Ltd. released third quarter results, including figures from its operations in Mexico. At Pinos altos, in Chihuahua, 378 K tonnes were processed at a rate of 4,109 tonnes per day (TPD), grading 1.98 gpt Au to produce 23,041 Oz Au at a production cost of $1,498 per OZ Au and total cash cost of $1,295 per Oz Au. Exploration drilling confirmed the existence of a high-grade block 100 m below the lowest production level at Pinos Altos, with a reported drill intercept of 11.6 m @ 3.1 gpt Au, 122 gpt Ag. At the Cubiro deposit under development, 9.2 m @ 3.3 gpt Au were intercepted in the western limits of the main Cubiro Corridor. At La India, in Sonora, 1.04 M tonnes were processed at a rate of 11,359 TPD, grading 0.72 gpt Au at a production cost of $1,246 per Oz Au and a total cash cost of $1,196 per Oz Au. “In the third quarter of 2022, the Main Zone pit was depleted and ore production transitioned to the La India and El Realito pits, resulting in higher gold grades and a higher stripping ratio”.
  • Alamos Gold Inc. reported its financial results for the Q3 2022, including figures from its Mexican operations. At Mulatos, in Sonora, 42,700 Oz Au were produced at total cash cost $1,781 per Oz Au and mine site AISC of $1,137 per Oz Au, with a capital expenditure of $6.9 M. At the Mulatos mine 759.3 K tonnes were mined and 1.57 M tonnes of waste moved (2.07 waste to ore ratio), with 1.27 M tonnes stacked @ 0.75 gpt Au (30,916 Oz Au stacked, 56% Au recovery rate) and 14 K tonnes crushed per day. At La Yaqui Grande 739 K tonnes were mined, 5.3 M tonnes of waste moved, 794 .1 K tonnes @ 1.23 gpt Au were stacked (31,362 Oz Au stacked, 81% Au recovery) and 8.7 K tonnes crushed per day. “La Yaqui Grande is an open pit mine with an independent leach pad located approximately seven kilometres from the existing Mulatos operation….  La Yaqui Grande performed well in its first full quarter of operation, producing 25,300 ounces of gold”.

ON FINANCING

  • Capitan Mining Inc. closed the first tranche of the previously announced $3.2 M non-brokered private placement for total proceeds of $2.6 M. The second tranche for total proceeds of $600 K is expected to close on or before the end of October (Cruz de Plata, Durango).
  • Guanajuato Silver Company Ltd. completed its admission to the Apex segment of the Aquis Stock Exchange, whilst continuing to trade on the TSX Venture Exchange (El Cubo and Valenciana, Guanajuato).
  • Bear Creek Mining Corp. reached a “heads of agreement” with Equinox Gold Corp. to amortize over a two-year period the payment of the final $25 M purchase price installment for the Mercedes mine in Sonora. The payment that was to be made on October 2022 has been converted in a promissory note maturing on October 2024, with monthly principal and interest payments commencing in February 2023, with an interest rate of 12.5% plus the greater of 2.5% or the 90-day average SOFR and monthly payments of US$500 K or 50% of free cash flow (Mercedes, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Prime Mining Corp. announced further phase 2 drill results from the Guadalupe area of the Los Reyes project in Sinaloa. Highlighted true width (TW) intercepts comprise 11.8m @ 2.7 gpt Au, 88 gpt Ag (including 2.2 m @ 27.9 gpt Au, 509 gpt Ag); 17.0 m @ 1.7 gpt Au, 59 gpt Ag (including 5.8 m @ 4.9 gpt Au, 176 gpt Ag); 12.2 m @ 1.7 gpt Au, 140 gpt Ag; 3.5 m @ 4.9 gpt Au, 614 gpt Ag (including 0.6 m @ 23.2 gpt Au, 2,550 gpt Ag); 1.9 m @ 6.08 gpt Au, 913 gpt Ag. “Reported intercepts are up to 100 m to the west, 240 m to the east, and 100 m below the 2020 pit-constrained resource”.
  • Oroco Resource Corp. released assay results from an additional 2,668 m of drilling in the North zone and 1,456 m in the Brasiles zone of its Santo Tomás project in Sinaloa. Highlighted core length intervals comprise 195.2 m @ 0.41% Cu; 117.8 m @ 0.22% Cu; 132.0 m @0.40% Cu; 36.0 m @ 0.20% Cu; 106.1 m @ 0.31% Cu; 211.6 m @ 0.41% Cu; 133.0 m q 0.17% Cu; 159.6 m @ 0.32% Cu; 228.0 m @ 0.31% Cu. “The 2021-2022 North Zone drill program is continuing to confirm and expand the 2009 Gradeshell model of Cu >0.30%” in the 2019 technical report, with a total of 38 holes now completed on the North zone spanning 1,400 of strike length.
  • Silver Tiger Metals Inc. presented results from drilling the El Tigre and Sooy veins at El Tigre project in Sonora. Highlighted core length intervals comprise 0.5 m @ 1.46 gpt Au, 1,320 gpt Ag; 5.4 m @ 220 gpt Ag; 10.7 m @ 120 gpt Ag (including 1.1 m @550 gpt Ag); 20.5 m @42 gpt Ag; 1.6 m @ 0.28 gpt Au, 528 gpt Ag; 0.5 m @ 991 gpt Ag; 5.9 m @ 0.10 gpt Au, 678 gpt Ag (including 1.0 m @0.37 gpt Au, 2,754 gpt Ag; 36.4 m @ 0.13 gpt Au, 42 gpt Ag; 3.1 m @211 gpt Ag; 9.4 m @ 0.19 gpt Au, 641 gpt Ag; “These next three wide consistently mineralized high grade holes confirm the new discovery in the El Tigre Vein we first reported in September 2022. Drilling continues on this exploration target under the unmined portion of the Historic El Tigre Mine as we follow this wide high grade along strike to the North.”
  • Vizsla Silver Corp. reported results from 12 holes targeting the La Luisa vein, close to the Napoleon vein, at its Panuco project in Sinaloa. Highlighted true width intervals comprise 6.13 m @ 133 gpt Ag, 3.68 gpt Aum 0.2% Pb, 0.3% ZN (including 0.68 m @ 595 gpt Ag, 27.50 gpt Au, 0.5% Pb, 0.6% Zn); 2.59 m @ 197 gpt Ag, 4.60 gpt Au, 0.2% Pb, 0.4% Zn (including 0.57 m @ 596 gpt Ag, 18.50 gpt Au, 0.6% Pb, 0.9% Zn); 1.00 m @ 49 gpt Ag, 2.90 gpt Au, 0.2% Pb, 0.7% Zn; 3.44 m @ 77 gpt Ag, 1.11 gpt Au; La Luisa vein structure has been mapped for almost 1 Km hosted in rhyolite tuffs and “bears vein-textures indicative of being at higher-levels in the epithermal profile …… there exists the potential for increased grades and widths along strike and down plunge to the south”.
  • Defiance Silver Corp. updated on the drill program at the Veta Grande vein system of the Zacatecas Silver project in Zacatecas. Highlighted core length results comprise 10.16 m @ 0.70 gpt Au, 121 gpt Ag, 0.7% Pb, 2.9% Zn (or 339 gpt AgEq, including 3.38 m @ 1.96 gpt Au, 345 gpt Ag, 2.2% Pb, 8.0% Zn, which includes 0.9 m @ 4.18 gpt Au, 868 gpt Ag, 4.6% Pb, 17.0% Zn); 2.0 m @ 0.51 gpt Au, 121 gpt Ag, 1.4% Pb, 4.8% Zn; 1.94 m @ 0.62 gpt Au, 29 gpt Ag, 0.4% Pb, 1.1% Zn; 2.19 m @ 0.29 gpt Au, 79 gpt Ag, 0.2% Zn. These results confirm the continuity of mineralization below the 2014 mineral resource. “The highest-grade silver mineralization at the San Acacio project is typically associated with honey-coloured sphalerite, argentiferous galena, variable silver sulfides and sulfosalts, and spatially correlated with amethyst”.
  • Silver Dollar Resources Inc. reported final assays from phase II drilling at the Noria portion of the La Joya project in Durango. Highlighted core length results comprise 25.44 m @ 21 gpt Ag, 0.08 gpt Au, 0.17% Cu, 0.2% Zn; 3.86 m @ 72 gpt Ag, 0.11 gpt Au, 0.09% Cu, 0.5% Zn; 1.29 m @ 304 gpt Ag, 0.68 gpt Au, 1.8% Pb, 5.3% Zn; 2.88 m @ 52 gpt Ag, 0.14% Cu, 0.1% Pb, 0.5% Zn; 3.0 m @ 2.3% Zn; 1.50 m @ 20.60% Zn; 0.66 m @ 43 gpt Ag, 2.1% Pb, 5.8% Zn; 6.67 m @ 63 gpt Ag, 0.10 gpt Au, 0.18% Cu, 0.3% Pb, 1.0% Zn.

ON DEALS AND CORPORATE ISSUES

  • Angel Wing Metals Inc. entered into a binding agreement with a private entity to acquire 100% interest in the 102.87 square Km La Reyna property land package in six titled concessions adjoining the El Grande project, and cover the Aguila de Oro (Golden Eagle) mining district in Nayarit. Angel Wing Metals Is to make a total payment of US$700 K, of which US$150 K have been paid upon signing, US$150 K have been paid upon filing of the agreement at the Public Registry of Mining in Mexico (Registro Público de Minería), and US$400 K to be paid upon positive resolution on the agreement by the Public Registry of Mining. A further payment of US$50 K will be due upon the identification of each 1.0 M OZ Au in the measured and indicated categories of a mineral resource on a NI43-101 technical report, and a 1.5% net smelter return (NSR) royalty with Angel Wing Metals retaining the right of first refusal to purchase the royalty for US$2.0 M.
  • Defiance Silver Corp. announced “that the case initiated against the illegally and fraudulently transferred mineral concessions concerning its Tepal Project” in Michoacán, has been admitted for trial by a District Court in Michoacán. The mineral concessions have to “stay” until the trial concludes and a final judgement is rendered. The Mexican Mining Public Registry has been informed. “Defiance has a substantial likelihood of success on the merits. Mexican Law, Mexican Precedents, and Mexican Courts are consistent in declaring null and void illegal transfers made fraudulently”.

ON SOCIAL RESPONSIBILITY

  • Agnico Eagle Mexico was awarded 17th place among the Top 100 of the best companies to work for in Mexico by Great Place to Work®. La India mine in Sonora received the “Distinction of Socially Responsible Company” distinction “granted by the Mexican Center for Philanthropy (Centro Mexicano para la Filantropía) and the Foundation for Sustainability and Equity (Alianza por la Responsabilidad Social Empresarial en México) to recognize companies for their commitment to ensuring the well-being of employees, operating with superior business ethics, community outreach and environmental care and preservation”.
  • Alamos Gold Inc. held information sessions on the company’s cyanide management practices with the communities of Yécora, El Trigo and Matarachi, Sonora, within the framework of the International Cyanide Management Code. An ambulance was donated to the Sahuaripa municipality, an online high school was established at Matarachi through an agreement with the Tec de Monterrey. Two freshwater pumping stations were set at Matarachi. New scholarship committees established in Matarachi, Sahuaripa and Yécora as part of the Company’s continued support for local students.

On the image below Late milky white quartz veinlets cross cutting previous quartz-specularite veining in the Sonoran Desert. Picture by Jorge Cirett.

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

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By Miguel A Heredia

During the 42nd week of the year (October 17th to October 23th, 2022), at least 15 press releases were announced by companies working in Mexico, and 4 news published by the media with six communicating production and financial issues, four reporting resources and developments of their properties, four commenting on Mexican issues, two announcing financing issues, one discussing social issues, one discussing deals and corporate issues, and one informing on exploration results. ON MEXICO ISSUES, Hermosillo, the capital city of the Sonora State, hosted the 14th International Mining Congress in October 18-21, 2022 with the participation of over 5,000 people. The Mexican Mining Chamber (CAMIMEX) warned that thefts of output and goods like explosives in the mining industry continue to increase despite the support provided by the Secretary of National Defense (SEDENA). According to data from the Ministry of Economy, the Mining Chamber of Mexico (Camimex) and experts, there is a mining collapse in Mexico since 822 mining projects were postponed, 180 foreign capital firms have left the country and there are 25 concessions stopped. GoGold and GR Silver reported the best drilling intercepts in Mexico on the third week of October, 2022. ON EXPLORATION, In Sinaloa, Prismo provided an update on its ongoing drill program conducted at its Palos Verdes project located in the historic Panuco-Copala mining district.  ON MINING, Avino, Santacruz, Golden Minerals, American Gold and Silver, and First Majestic reported Q3, 2022 production results from their Mexican mining operations, while Guanajuato Silver announced that it has recommenced mining at its Valenciana Mines Complex in Guanajuato, and provided a 6-month production estimate. ON FINANCING, Sierra Metals announced that it has commenced a process to evaluate and consider the company´s current financial and liquidity position, operational challenges and possible financing and restructuring alternatives that may be available to the company. Barksdale closed the final tranche of its previously announced non-brokered private placement for gross proceeds of $264K, and completed an extension of financial instruments (San Javier project in Sonora).  ON RESOURCES AND DEVELOPMENT, Avino announced that the installation and commissioning of the dry-stack tailings at its Avino mine in Durango has been completed. GoGold reported the acquisition of the 1,107 Ha Eagle concession covering the northern strike of the Main Deposit on the Los Ricos South property in Jalisco. Equinox released an updated feasibility study (FS) for its Los Filos mine expansion located in Guerrero State. GR Silver presented drilling results and announced the extension of the SE Area Silver Discovery at its Plomosas deposit in Sinaloa. ON DEALS AND CORPORATE ISSUES, Avinois conducting community agreements in the nearby towns adjacent to its la Preciosa property in Durango as it is committed to moving this project forward as part of the company´s 5-year growth strategy. ON SOCIAL RESPONSIBILITY, Industrias Peñoles and Fresnillo plc mining companies reiterated their commitment in saving and energy efficiency to continue implementing actions that contribute to the fight against global warming in order to build the mining of the 21st century.

ON MEXICO ISSUES

  • Hermosillo, the capital city of the Sonora State, hosted the 14th International Mining Congress during October 18-21, 2022, with the participation of over 5,000 people.
  • The Mexican Mining Chamber (CAMIMEX) warned that thefts of output and goods like explosives in the mining industry continue to increase despite the support provided by the Secretary of National Defense (SEDENA). The General Director of CAMIMEX, Karen Flores, said that thefts remain a recurrent issue in the sector and highlighted that these crimes are probably perpetrated by organized crime.
  • According to data from the Ministry of Economy, the Mining Chamber of Mexico (Camimex) and experts, there is a mining collapse in Mexico since 822 mining projects were postponed, 180 foreign capital firms have left the country and there are 25 concessions stopped. If the policy were to change, 30% more jobs would be created and the contribution to Mexico’s GDP would increase by 0.5%, according to estimates. Mining and metallurgical activity exceeded tourism by 19% in foreign exchange generation. The president of the Association of Mining Engineers, Metallurgists and Geologists of Mexico (AIMMGM), indicated that the uncertainty generated by this administration in the sector has caused a slowdown, which has left investments far from the more than USD $8 billion that were reached in previous years. GoGold Resources Inc., and GR Silver Mining Ltd., reported the best drilling intercepts in Mexico on the third week of October, 2022. Details are shown in the table below:

ON EXPLORATION

  • Prismo Metals Inc., provided an update on its ongoing drill program conducted at its Palos Verdes project located in the historic Panuco-Copala mining district in the state of Sinaloa. A total of 1,203m in 4 holes have been drilled to date out of a planned minimum of 2,000m. Drilling has intersected wide structural zones at depth where the Palos Verdes vein is branching into several strands measuring from about 0.5m to 9m in width in andesitic rocks. Core sampling is being completed on the entire structural zone including wall rock with veinlets. Assay results are expected to arrive in early November, 2022.

ON MINING

  • Avino Silver & Gold Mines Ltd., reported Q3, 2022 production results from its Avino mine in Durango. The company milled 162.1K tonnes of 59 g/t Ag, 0.31 g/t Au, and 0.66% Cu with metallurgical recoveries of 92%, 74%, and 89% respectively to produce 285.4K Oz Ag, 1.2K Oz Au and 2.1M Lb Cu (778K Oz AgEq).
  • Santacruz Silver Mining Ltd., announced Q3, 2022 production results from its Zimapan mine in Hidalgo. It milled 215,765 tonnes of 79 g/t Ag, 2% Zn, 0.7% Pb, and 0.39% Cu to produce 368.6K Oz Ag, 6.8M Lb Zn, 2.6M Lb Pb, and 1.4M Lb Cu (988.6K Oz AgEq).
  • Guanajuato Silver Company Ltd., has recommenced mining at its Valenciana Mines Complex (VMC) in Guanajuato. Cut & fill mining of high-grade epithermal veins at Valenciana is currently focused on the Los Pozos mine area where several mineralized blocks had been previously defined. Mineralized material from Valenciana is currently being transported to El Cubo for processing. The company expects to mine 5,000 tonnes per month at Valenciana throughout the remainder of 2022. “The Cata processing facility is centrally located within the Valenciana Mines Complex and has a production capacity of 36,000 tonnes per month. In November 2021 Cata was placed on care & maintenance by its previous owner. Guanajuato Silver had initially anticipated restarting the Cata mill in 2023, but with the rapid recommencement of mining at San Ignacio and the VMC, the company now expects to restart mineral processing at Cata before the end of 2022. The company also provided a 6-month production estimate. Guanajuato Silver expects to mine 125K-140K tonnes in Q4, 2022 to produce over 760K-985K and over 140K-160K tonnes in Q1, 2023 to produce over 910K-1.15M Oz AgEq.
  • Golden Minerals Company announced Q3, 2022 production and financial results from its Rodeo mine in Durango. The company mined 192,545 tonnes and reported that 23,618 tonnes were placed in stockpiles awaiting processing and 121,202 tonnes were placed in low grade stockpiles. Golden processed  47,947 tonnes of 2.6 g/t Au and 10 g/t Ag with metallurgical recoveries of 74.6% and 77.6% respectively., to produce 2,972 payable Oz Au in Dore and 11,907 payable Oz Ag in Dore (3,103 payable Oz AuEq in Dore). The company sold 3,108 Oz Au and 11,609 Oz Ag (3,145 Oz AuEq) at an average realized price before refining and selling costs of USD $1,703.10 per Oz Au and USD $18.72 per Oz Ag.
  • Americas Gold and Silver Corporation reported Q3, 2022 production results from its Cosalá operations in Sinaloa. It produced 186K Oz Ag, 3.8M Lb Pb, and 9.4M Lb Zn and announced that silver production from the Cosalá operations for the full year 2022 is expected to be at the lower end of the projected range of 0.7-0.9M Oz Ag, while zinc and lead production are expected to be towards the upper end of the projected ranges of 36 to 40M Lb Zn and 13 to 15M Lb Pb.
  • First Majestic Silver Corp., reported Q3, 2022 production results from their Mexican Mining operations (San Dimas in Durango, Santa Elena in Sonora, and La Encantada in Coahuila). Figures by mine are shown in the table below:

ON FINANCING

  • Sierra Metals Inc., announced that it has commenced a process to evaluate and consider the company´s current financial and liquidity position, operational challenges and possible financing and restructuring alternatives that may be available to the company. “The company faces liquidity challenges as a result of the recent previously announced suspension of operations at the Yauricocha Mine in Peru, and operating losses and negative cash flows that have accumulated, primarily from the Bolivar and Cusi operations in Mexico”. 
  • Barksdale Resources Corp., closed the final tranche of its previously announced non-brokered private placement with Teck Resources Limited for gross proceeds of $264K. The net proceeds will be used for general corporate and working capital purposes. Barksdale also completed an extension of the maturity date of the secured convertible debentures administered by Delbrook Capital Advisors Inc. by one year until December31, 2023. The debentures have a remaining principal amount of $1.5M and all other terms of the debentures remain unchanged except for the conversion price, which has increased to $0.55 per share from $0.45 per share (San Javier project in Sonora).

ON RESOURCES AND DEVELOPMENT

  • Avino Silver & Gold Mines Ltd., announced that the installation and commissioning of the dry-stack tailings at its Avino mine in Durango has been completed. The company chose dry-stack tailings for its environmental, safety and economic advantages, as well as because it reduces the need to extract water from local sources by recycling the water removed from tailings.
  • GoGold Resources Inc., reported the acquisition of the 1,107 Ha Eagle concession covering the northern strike of the Main Deposit on the Los Ricos South property in Jalisco by USD $2.1M to be paid over 4 years. As a result of this acquisition, all of the concessions in Los Ricos South are now contiguous. “This offers the potential for an additional bulk tonnage target in Los Ricos South, with continuity from the Main Area and Eagle”.
  • Equinox Gold Corp., released an updated feasibility study (FS) for its Los Filos mine expansion located in Guerrero State. Highlights of the FS include an after-tax NVP at  5% discount rate of USD $625M at base case of USD $1,675 per Oz Au; after-tax IRR of 26% at USD $1,675 per Oz Au; 5.4M Oz Au of Proven + Probable Mineral Reserves with grades of 0.65 g/t Au for open pit ore material and 3.94 g/t Au for underground ore material (average grade of 0.86 g/t Au); 7.9M Oz Au of Measured and Indicated Resources (exclusive of Reserves) with grades of 0.71 g/t Au for open pit ore material and 3.65 g/t Au for underground ore material (average grade of 0.75 g/t Au); 3.97M Oz life-of-mine (LOM) Au production, with  360K Oz peak average annual gold production (2025-2030), 280K Oz average annual gold production LOM (2023-2036), 1.22M Oz Au produced from the heap leach with average recovery of 55%, 2.75M Oz Au produced from the CIL plant with average recovery of 88%; 11.83M Oz LOM silver production; USD $993M after-tax LOM cumulative net cash flow; USD $981/ Oz average LOM cash cost; USD $1,081/Oz average LOM AISC; USD $318M initial capital cost to build the CIL plant and associated infrastructure; and 14.5-year mine life with extension potential from Mineral Resources conversion and exploitation success.
  • GR Silver Mining Ltd., presented drilling results and announced the extension of the SE Area Silver Discovery at its Plomosas deposit in Sinaloa. Drilling highlights include hole SMS22-16 which identified a wide hydrothermal breccia and stockwork system with multiple high grade Ag intervals such as 112 g/t Ag, 0.06 g/t Au, and 0.1% Zn over 123.1m, including 289 g/t Ag, 0.05 g/t Au, and 0.1% Zn over 13.1m, including 4,680 g/t Ag, 0.57 g/t Au, 0.1% Pb, and 0.1% Zn over 0.4m, and 250 g/t Ag, 0.1 g/t Au, 0.1% Pb, and 0.3% Zn over 27.3m, including 1,351 g/t Ag, 0.3 g/t Au, 0.1% Pb, and 0.2% Zn over 0.3m, and 635 g/t Ag, 0.08 g/t Au, 0.2% Pb, and 0.3% Zn over 6.4m, including 2,203 g/t Ag, 0.17 g/t Au, 0.8% Pb, and 1.4% Zn over 0.5m, and 102 g/t Ag and 2.6 g/t Au over 1.5m; and hole SMS22-14 with 23 g/t Au and 0.06 g/t Au over 10.5m, and 118 g/t Ag, 0.02 g/t Au, and 0.1% Zn over 3.5m, including 1,790 g/t Ag, 0.03 g/t Au, 0.7% Pb, and 2.9% Zn over 0.2m, and 22 g/t Ag, 0.08 g/t Au over 10.9m. The drilling program continues at the SE Area to define the geometry and lateral extents of the mineralization. “The occurrence of Ag anomalous zones on surface along the 1.5km target contact, further SE from the SE Area, provides new targets for the company to continue drilling, aimed at expanding the footprint of mineralization and potentially for incorporation into the planned resource estimation update in Q1, 2023”.

ON DEALS AND CORPORATE ISSUES

  • Avino Silver & Gold Mines Ltd is conducting community agreements in the nearby towns adjacent to its la Preciosa property in Durango as it is committed to moving this project forward as part of the company´s 5-year growth strategy.

ON SOCIAL RESPONSIBILITY

  • Industrias Peñoles S.A.B. de C.V. and Fresnillo plc mining companies reiterated their commitment in saving and energy efficiency to continue implementing actions that contribute to the fight against global warming in order to build the mining of the 21st century. In accordance with their sustainable development policies, both companies have programs to reduce greenhouse gas emissions, such as those from transportation, for which they implemented a strategy to save energy and use clean sources. Peñoles and Fresnillo plc are committed to caring for the environment and seek to achieve, in the near future, the objective of zero significant environmental impacts.

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, cockade texture from a low-sulphidation epithermal Au-Ag vein system in a project in Sinaloa, Mexico.  Photo by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the Second Week of October 2022

During the 41st week of the year (October 10th to October 16th, 2022), 15 companies working in Mexico released news on their properties. Three companies posted exploration advances on their properties, six companies released Q3 2022 results, one company is to undertake a private placement and one more expanded on the maturity extension of convertible debentures and three companies released drilling results from their advanced properties.  ON MEXICO ISSUES, no relevant news. ON EXPLORATION, in Sonora, Regency Silver released drilling results from the Dios Padre property, including great results from a hole testing a geophysical anomaly 500 m from the historic resource. Prismo Metals updated on the drilling program and sampling protocol at Palos Verdes. In Durango, Silver Wolf updated on exploration at its Ana Maria project. ON MINING, Endeavour Silver, Torex Gold, GoGold Resources, Orla Mining, Gatos Silver and Gold Resource released Q3 2022 production results. ON FINANCING, Sonoro Resource is to undertake a financing round for C$525 K. Barksdale Resources extended the maturity date of convertible debentures with a remaining principal amount of $1.5 M.  ON RESOURCES AND DEVELOPMENT, Avino Silver and Gold Mines released drilling results from its Avino mine in Durango. Prime Mining provided drilling results from Los Reyes property, in Sinaloa. Vizsla Silver reported drilling results from the southern part of the Napoleon vein at its Panuco project in Sinaloa. ON DEALS AND CORPORATE ISSUES, no relevant news. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • No Relevant News.

ON EXPLORATION

  • Prismo Metals Inc. updated on the drill program at its Palos Verdes project in Sinaloa. A total of 1,062 m have been drilled of the planned minimum 2,000 m. Three holes have been completed and one is in progress testing the Palos Verdes vein and a structural intersection. By analyzing Vizsla’s Silver recent drill data on the adjacent Panuco project, a new sampling protocol has been implemented, including wallrocks with quartz veining. Several long intervals of the past drilling campaign will be also sent to the lab.
  • Regency Silver Corp. released results from the first 12 holes at its Dios Padre property in Sonora. The highlighted core length interval of the first hole on a geophysical anomaly 500 m north of the historic resource comprise 53.8 m @ 4.7 gpt Au (including 35.8 m @ 6.84 gpt Au, 22 gpt Ag, 0.88% Cu and 9.8 m @ 13.97 gpt Au, 50 gpt Ag, 1.11% Cu) starting at 420 m depth. Au-Cu-Ag mineralization in this hole is largely breccia hosted, with pyrite and chalcopyrite forming the breccia matrix. “The core of the mineralized zone sits within and adjacent to a felsic intrusive body, though mineralization is present both within the felsic unit as well as the host andesites. Both rock units are strongly altered to white mica with some silica”. The hole was stopped due to the 500 m maximum capacity of the rig being used. Highlighted intervals were released by element, comprising 60 m @ 0.33% Cu; 52 m @ 0.69% Cu (including 33 m @ 0.94% Cu) and 29.3 m @ 0.36 gpt Au; 6 m @ 0.68 gpt Au; 53.8 m @ 4.7 gpt Au; 21.5 m @ 0.53 gpt Au; 4.2 m @ 2.1 gpt Au; 49.65 m @ 0.58 gpt Au; 10 m @ 0.57 gpt Au; 17.9 m @ 1.34 gpt Au; 23.65 m @ 0.36 gpt Au and 26.3 m @ 63 gpt Ag;  (including 4.3 m @ 317 gpt Ag); 60 m @ 19 gpt Ag; 8 m @ 60 gpt Ag; 18 m @ 14 gpt Ag; 8 m @ 67 gpt Ag; 12 m @ 45 gpt Ag; 17.5 m @ 135 gpt Ag (including 3.9 m @ 582 gpt Ag); 2.2 m @ 220 gpt Ag; 10.95 m @ 302 gpt Ag; 6.95 m @ 336 gpt Ag; 18.55 m @ 50 gpt Ag; 7.5 m @ 113 gpt Ag; 3.1 m @ 420 gpt Ag; 21.5 m @ 137 gpt Ag; 9.6 m @ 56 gpt Ag; 1 m @ 603 gpt Ag; 37.4 m @ 110 gpt Ag (including 19.65 m @ 203 gpt Ag).
  • Silver Wolf Exploration Ltd. reported on exploration at its 2,500 hectares Ana Maria property in Durango. Two main targets are being defined using a carbonate replacement deposit (CRD) model. The central claim block hosts a gold skarn type showing, while the southern claim block is distal to the intrusive, hosting CRD Ag-Zn-Pb prospects and historical small mines. “Continued work on the central claims include a reinterpretation of geophysical results to fine tune the magnetics data and further identify the intrusive contacts with the surrounding limestone at depth”.

ON MINING

  • Endeavour Silver Corp. reported third quarter 2022 production results, with 202.7 K tonnes processed at a daily rate (tpd) of 2,204 tonnes grading 248 gpt Ag, 1.60 gpt Au to produce 1.46 M Oz Ag, 9,194 Oz Au. At Guanaceví, in Durango, 97.7 K tonnes were processes at 1,062 tpd, grading 468 gpt Ag, 1.29 gpt Au with a recovery of 90.6% Ag, 89.9% Au to produce 1.33 M Oz Ag, 3,642 Oz Au. At Bolañitos, in Guanajuato, 105 K tonnes were processed at 1,141 tpd, grading 43 gpt Ag, 1.88 gpt Au with a recovery rate of 87.0% Ag, 87.5% Au, to produce 126.3 K Oz Ag, 5,552 Oz Au. Positive drilling results have been received from Guanaceví and Parral, extensive due diligence work continues at Terronera (Jalisco) and the El Compas property and plant were sold for $5 M over five years.
  • Torex Gold Resources Inc. reported Q3 2022 gold production from its El Limón Guajes mining complex in Guerrero. During the period 9,600 tonnes per day (tpd) were mined by open pit and 1,550 tpd from underground, processing an average of 13 K tonnes to produce 122,200 Oz Au.
  • GoGold Resources Inc. reported production for the quarter ending on September 30, 2022. At the Parral tailings project in Chihuahua, 145.9 K Oz Ag, 2,278 Oz Au, 124 tonnes Cu were produced during the period. “The Company had $20M USD in input tax recoverable which related to VAT receivable from the Mexican Federal Government for the years of 2017 to 2022. The Company received $11M which related to 2017 and 2018 which included interest of $5M. Management continues to work with the tax authority on the remaining claims and expects to receive these amounts in due course”.
  • Orla Mining Ltd. provided an interim operational update for the third quarter of 2022. At Camino Rojo in Zacatecas, 4.13 M tonnes were mined, of which 1.74 M tonnes @ 0.88 gpt Au were processed, 0.43 M tonnes @ 0.32 gpt Au were stockpiled (19,200 tonnes per day), and 1.96 M tonnes of waste moved (Strip ratio 0.91), to produce 28,876 Oz Au.
  • Gatos Silver Inc. announced production results for the third quarter 2022 from its 70% owned Cerro Los Gatos property in Chihuahua. During the period 263.3 K tonnes were milled at a rate of 2,862 tpd averaging 356 gpt Ag, 0.34 gpt Au, 2.38% Pb, 4.70% Zn. Recovering 89.6% Ag, 48.9% Au, 88.5% Pb, 65.4% Zn to produce 2.70 M Oz Ag, 1,400 Oz Au, 12.2 M Lb Pb, 17.8 M Lb Zn. “The Company had a cash balance of $15 million and debt outstanding of $13 million related to our credit facility as of September 30, 2022”, and “anticipates completing an impairment assessment based on the 2022 Mineral Reserve in the fourth quarter of 2022 and is working towards completing all outstanding SEC and OSC filings as soon as practicable”.
  • Gold Resource Corp. announced preliminary results in Q3 2022. At the Don David mine in Oaxaca, 110.7 K tonnes were milled (1,361 tpd), averaging 1.98 gpt Au, 80 gpt Ag, 0.37% Cu, 1.59% Pb, 4.21% Zn, to produce 5,851 Oz Au, 261.2 K Oz Ag, 296 tonnes Cu, 1,249 tonnes Pb, 3,901 tonnes Zn. 

ON FINANCING

  • Sonoro Gold Corp. is to undertake a non-brokered private placement offering for gross proceeds of up to C$525 K (Cerro Caliche, Sonora).
  • Barksdale Resources Corp. has finalized the extension of the maturity date of the secured convertible debentures administered by Delbrook Capital Advisors Inc. by one year until December 31, 2023. “The Debentures have a remaining principal amount of $1,500,000 and all other terms of the Debentures remain unchanged except for the conversion price, which has increased to $0.55 per share from $0.45 per share”. Approximately $99 K of accrued interest will be exchanged for 206.6 K shares units consisting of one share and one-half of common share purchase warrant. An extension fee of 2.78 M common share purchase warrants at a price of $0.72 exercisable up to December 2023 was agreed (San Javier, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Avino Silver & Gold Mines Ltd. released drilling results from six holes completed below the current Level 17 mining area at the Elena Tolosa area of the Avino mine in Durango. Highlighted true width (TW) intercepts comprise 26.77 m @ 0.15 gpt Au, 50 gpt Ag, 0.71% Cu; 43.80 m @ 0.15 gpt Au, 15 gpt Ag, 0.49% Cu; 10.90 m @ 0.06 gpt Au, 25 gpt Ag, 1.05% Cu; 9.95 m @ 0.25 gpt Au, 17 gpt Ag, 0.40% Cu; 14.40 m @ 0.17 gpt Au, 30 gpt Ag, 0.19% Cu. These drilling results demonstrate the continuity of grade and thickness of the mineralization currently being mined at the lowest level of the mine. The company is developing a geological model based on a near porphyry environment, supported by the grade continuity over 600 m vertically and base metal zonation.
  • Prime Mining Corp. announced results from five holes in the Z-T area of the Los Reyes property in Sinaloa. Highlighted true width intercepts comprise 13.2 m @ 2.36 gpt Au, 178 gpt Ag; 7.40 m @ 0.91 gpt Au, 139 gpt Ag; 5.60 m @ 3.86 gpt Au, 89 gpt Ag; 5.30 m @ 1.17 gpt Au, 207 gpt Ag. Five rigs have completed 70,590 m of drilling in this phase 2 campaign that is planned to continue to the end of October, while results for 93 holes remain pending.
  • Vizsla Silver Corp. reported results from 12 holes targeting the southern extension of the Napoleon vein at its Panuco project in Sinaloa. Highlighted true width (tw) intervals comprise 1.0 m @ 1.60 gpt Au, 2,642 gpt Ag, 1.9% Pb, 4.1% Zn; 1.0 m @ 3.63 gpt Au, 740 gpt Ag; 0.2% Pb, 1.2% Zn; 1.86 m @ 0.6 gpt Au, 354 gpt Ag, 0.2% Pb, 0.5% Zn; 1.81 m @ 3.12 gpt Au, 1,268 gpt Ag, 0.2% Zn; 0.91 m @ 5.77 gpt Au, 320 gpt Ag, 0.5% Pb, 1.3% Zn. “The new drill holes report high grade silver and gold intercepts from the footwall vein splays and further support grade continuity to the south along the main Napoleon Vein”.

ON DEALS AND CORPORATE ISSUES

  • No Relevant News.

ON SOCIAL RESPONSIBILITY

  • No Relevant News.

On the image below Banded quartz-calcite veinlet in the Sonoran Desert. Picture by Jorge Cirett.

Mexico’s Best Drilling Intercepts, Second Week of October 2022

Gold, silver and copper, in these three elements drilling at the Dios Padre project in Sonora by Regency Silver topped the best intercepts of the week. The best intercept, 53.80 m @ 4.70 gpt Au, comes from an area 500 meters from the small silver resource already outlined, targeting a geophysical anomaly. The project is located on the Santa Rosa de Yecora mining district in Sonora, known mainly for the development of breccias in the contacts or near the contacts of an intrusive stock some 20 x 15 kilometers with ragged borders. Minera Alamos is currently mining the Santana project, Magna Gold has published in the last few years about its Mercedes project, Centerra drilled one more property in the district not long ago. The breccias can be rich in copper-molybdenum (Los Verdes), tungsten, gold (Santana), silver (Dios Padre, Guadalupe de Tayopa) or a combination of these elements. With the recent published intercepts by Regency Silver, more drilling is expected to come, and more attention to the district.

The intercepts from Panuco and Los Reyes in Sinaloa come from intermediate sulfidation epithermal mineralization in structures. The Avino mine results from Durango can be either categorizad as intermediate sulfidation epithermal in nature, or distal mineralization to a porphyry copper system, as recently suggested by Avino Silver on their press release.

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

Banded Quartz

By Miguel A Heredia

During the 40th week of the year (October 03rd to October 09th, 2022), at least 20 press releases were announced by companies working in Mexico, and 4 news published by the media with seven reporting resources and developments of their properties, four announcing financing issues, four discussing social issues, three informing on exploration results, two communicating production and financial results, two commenting on Mexican issues, and two discussing deals and corporate issues. ON MEXICO ISSUES, The Discoveries Mining Conference 2022 was held in Hermosillo, Sonora on October 4-6, 2022. The Governor of Guerrero, Evelyn Salgado announced the reinstatement of the State Mining Council and confirmed that Acapulco will host the 35th edition of the Mining Convention in 2023. ON EXPLORATION, In Sonora, Canuc reported that recent work at its San Javier project has identified eight targets within four distinct mineralized zones.  In Durango, Orex announced the completion of the Phase-1 reconnaissance exploration drilling program on its Sandra project.  In Oaxaca, Vortex provided an update of the exploration work completed to date at its Riqueza Marina project.  ON MINING, Bear Creek presented Q3, 2022 production results from its Mercedes mine in Sonora. Guanajuato Silver provided an update highlighting the impact of additional production from the Topia and San Ignacio mines in Durango and Guanajuato states respectively. ON FINANCING, Advance Lithium closed a previously announced private placement financing for gross proceeds of $75K (Sarape project, Sonora). Capitan Mining announced a non-brokered private placement for gross proceeds of up to CAD $3M (Cruz de Plata project, Durango). Guanajuato Silver has arranged to issue 2,468,750 common shares of the company in settlement of outstanding accounts payable and accrued liabilities to various parties totaling approximately CAD $987K (Pinguico mine, Guanajuato).  Barksdale announced that Teck Resources has elected to exercise its pro-rata equity participation rights for gross proceeds of $264K (San Javier project, Sonora).   ON RESOURCES AND DEVELOPMENT, Azucar Minerals completed second hole into the large porphyry lithocap target at its El Cobre project in Veracruz. Gatos Silver provided updates on its Cerro Los Gatos Mineral Resources, Mineral Reserves, and Life of Mine. Minera Alamos announced positive results of an independent Preliminary Economic Assessment (PEA) for its Cerro de Oro project in Zacatecas. Oroco announced that, based on drill results, expanded the North Zone mineralization, and confirmed higher grade at its Santo Tomas project in Sinaloa.  Tarachi Gold received final metallurgy results for its Magistral Mill and Tailings project in Durango. Torex received key environmental permit for its Media Luna project in Guerrero. Prime Meridian provided an update on its La Verde project in Michoacan. ON DEALS AND CORPORATE ISSUES, Starcore announced results of its annual general meeting of shareholders (San Martin mine, Queretaro). Riverside regained 100% control of the La Union project in Sonora after Hochschild announced its decision to not to proceed with the option. ON SOCIAL RESPONSIBILITY, Peñoles and Fresnillo Plc work together for an appropriate and healthy habitat. Peñoles and Fresnillo Plc were awarded with a distinction in Ethics and Values ​​of the Industry 2022. GoGold presented its second annual sustainability report that sets out the company´s performance and achievements with respect to its environmental, social, and governance practices. MAG Silver announced the publication of its inaugural Sustainability Report.

ON MEXICO ISSUES

  • The Discoveries Mining Conference 2022 was held in Hermosillo, Sonora on October 4-6, 2022, and included more than 50 talks covering topics ranging from the latest geological discoveries, new technologies applied to mining and exploration, social, legal and political issues affecting the industry, and the challenges and obstacles confronted and overcome on the way to production.
  • The Governor of Guerrero, Evelyn Salgado announced the reinstatement of the State Mining Council and confirmed that Acapulco will host the 35th edition of the Mining Convention in 2023. She also recognized this industry, which each year leaves an approximate spill of MXP $3,400M. The Governor pointed out that the mining sector is one of the main economic activities in Guerrero, which has a presence in 29 municipalities in the Central, Tierra Caliente and North regions of the state, with an important gold production that places the entity in the first places. She stressed that the mining industry in Guerrero generates more than 4,500 direct jobs and more than 22,000 indirect jobs, with an economic benefit of more than MXP $3,400M, which translates into development and well-being, for which she urged that the Mining Council in Guerrero, be a space for dialogue and consensus that allows the construction of shared strategies and programs hand in hand with the various sectors with a comprehensive perspective seeking the development of Guerrero. In addition, she declared that Guerrero is the state of the country with the largest investment announced for this year for more than USD $1,327M for new mining projects, estimating growth with a favorable environment.

ON EXPLORATION

  • Canuc Resources Corporation reported that recent work at its San Javier project in Sonora has identified eight targets within four distinct mineralized zones, which now merit-follow-up work. At the Silver Zone, about additional 100 soils samples were collected to better define a strong Ag and Au anomaly. Now, the Ag soils anomaly is 750m in strike length with values up to 21 g/t Ag and 1.65 g/t Au, and remains open in both the southwest and northeast direction. Recent prospecting and rock sampling (10 samples) on the northeast end of this zone, approximately 400m of the soil survey has returned Ag values from 38 g/t Ag to 1,533 g/t Ag associated to magnetite veins which daylight near the margins of a magnetic high. Additionally, seven samples were collected near old artisanal workings and assayed from 27g/t Ag to 604 g/t Ag and from 0.1 g/t Au to 1.2 g/t Au. More sampling is planned throughout this area. At the Gold Zone South and Gold Zone Central, the company collected 1,829 channel samples from 11 bulldozed trenches. All the trenches contain elevated Au values ranging from 0.2 g/t Au to 40 g/t Au. At the South Gold Zone, two targets measuring 300m to 400m in diameter have been outlined. Sampling on one of those called La Cascada returned 0.16 g/t Au and 0.48% Cu over a width of 13m, while the other called Loma Pelona assayed 0.59 g/t Au and 0.47% Cu over a width of 10.5m. The Central Gold Zone contains 3 distinct targets measuring 300 to 400m in diameter. La Mesa target includes elevated Au values ranging from trace to 1.42 g/t Au. One section returned 0.28 g/t Au over 16m. At La Curva target the trenching sampling returned 0.45 g/t Au over 6m; 0.48 g/t Au over 4m; and 0.45 g/t Au over 4m. At La Quebrada target, trenching sampling returned 0.68 g/t Au over a width of 14m. Six channel samples collected over a an area of 100mlong by 50m wide, located approximately 80m southeast of the trench area, returned an average grade of 3.09 g/t Au, ranging from 0.018 g/t Au to 11.4 g/t Au. At the North Zone, a target called Chapoteados was prospected and sampled on an area of  600m long by 200m wide. Twenty two samples were taken and contained an average grade of 0.38% Cu, 0.3 g/t Au, and 4 g/t Ag. A second target called Arroyo Hondo, located 800m northeast of the Chapoteados target also was sampled. Twenty five samples collected on an area of 300m by 100m averaged 15 g/t Ag, (ranging from trace to 145 g/t Ag), 0.14 g/t Au, (ranging from  0.01 g/t Au to 1.19 g/t Au), and 220 ppm Cu, (ranging from 20 ppm to 0.38% Cu).
  • Orex Minerals Inc., announced the completion of the Phase-1 reconnaissance exploration drilling program on its Sandra project in northwest Durango. Sandra project is a JV agreement between Pan American Silver Corp., (60%) and Orex Minerals (40%). Phase-1 consisted of 2,665.30m in 8 diamond drill holes.  Four holes were drilled on targets in the Central Corridor aand four holes were drilled in the Eastern Corridor. Drilling highlights include hole SA-22-066 collared in the Central Corridor with 1.04 g/t Au over a true width (TW) of 1.53m; and hole SA-22-.073 collared in the Eastern Corridor with 39 g/t Ag, 0.1% Pb, and 0.2% Zn over a TW of 14.5m, including 51 g/t Ag, 0.2% Pb, and 0.,2% Zn  over a TW of 5.1m.
  • Vortex Metals Inc., provided an update of the exploration work completed to date at its Riqueza Marina Volcanogenic Massive Sulphide project in Oaxaca. The company completed a gravity and magnetic survey at the Rhyolite Dome target that produced extensive geophysical anomalies coincident with geochemical anomalies, including the West and East Gossan Areas.   Rock sampling  returned 12 samples with more than 1% Cu, up to 20.2% Cu and an additional 34 samples contain more than 1,000 ppm Cu. Vortex plans to drill this target once the drill permits are secured.

ON MINING

  • Bear Creek Mining Corporation, presented Q3, 2022 production results from its Mercedes mine in Sonora. The company mined 128,698 tonnes and processed 148,211 tonnes of 2.45 g/t Au with metallurgical recovery of 95.53% to produce 11,169 Oz Au. Bear Creek sold 12,310 Oz Au. It also reported a gold stream of 2,759 Oz Au.
  • Guanajuato Silver Company Ltd., provided an update highlighting the impact of additional production from the recently acquired Topia and San Ignacio mines in Durango and Guanajuato states respectively. Guanajuato Silver increased 85% its production from July to August 2022. The company reported that in August, 2022 it mined from the El Cubo & San Ignacio mines in Guanajuato, and Topia mine in Durango 41,372 tonnes and milled 36,948 tonnes to produce 128,780 Oz Ag, 1,091 Oz Au, 348,137 Lb Zn, and 266,881 Lb Pb (267,525 Oz AgEq) with metallurgical recoveries of 88.9%, 85.6%, 81.8%, and 89.5% respectively, at a cash cost of $15.09 per Oz AgEq.

ON FINANCING

  • Advance Lithium Corp., closed a previously announced private placement financing for gross proceeds of $75K. Proceeds will be used to advance the Lithium and Sarape projects, and for general corporate purposes (Sarape project, Sonora).
  • Capitan Mining Inc., announced a non-brokered private placement for gross proceeds of up to CAD $3M. It will consists of 15M of common shares at a price of CAD $0.20 per share. Net proceeds will be used to advance drilling and work program at the Cruz de Plata project in Durango, as well as for working capital and general corporate expenses.
  • Guanajuato Silver Company Ltd., has arranged to issue 2,468,750 common shares of the company at a deemed price of CAD $0.40 per share in settlement of outstanding accounts payable and accrued liabilities to various parties totaling approximately CAD $987K (Pinguico mine, Guanajuato). 
  • Barksdale Resources Corp., announced that Teck Resources Limited has elected to exercise its pro-rata equity participation rights for gross proceeds of $264K. Teck will hold approximately 9.9% of Barksdale’s equity on a partially diluted basis. Net proceeds from the financing will be used to advance the Company’s mineral projects and for general corporate and working capital purposes (San Javier project, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Azucar Minerals Ltd., completed second hole into the large porphyry lithocap target at its El Cobre project in Veracruz. “This hole passed trough typical clay dominant lithocap alteration into phyllic alteration. Large intervals of brecciated rock were intersected possibly reflecting a diatreme like body that may have disrupted any earlier porphyry alteration zonation in this area. Alteration data has been collected from the core using a Terraspec infrared spectrometer along with samples for assay and fluid inclusion analysis. Any future drilling in this area will be guided by the results and interpretation of these analyses from both holes”.
  • Gatos Silver Inc., provided updates on Mineral Resources, Mineral Reserves, and Life of Mine for its Cerro Los Gatos and Esther mines in Chihuahua. Figures are shown in the tables below:

Cerro Los Gatos – Mineral Reserves as at July 1, 2022.

Cerro Los Gatos – Mineral Resources as at July 1, 2022.

Esther – Mineral Resources as at July 1, 2022.

*Mineral Resources are exclusive of Mineral Reserves.

As for the Cerro Los Gatos Life of Mine plan using only the 2022 Mineral Reserves, the company reported that the current reserve mine life continues to 2028; the average annual production of 7.8M Oz Ag will generate an average annual cash flow of USD $79M (after tax) through 2028 at USD $22 per Oz Ag price; an all in sustaining cost (AISC) of  USD $7.06 per Oz of payable Ag, net of by-product credits; an average cost of USD $89.76 per tonne milled ; and a net present value (NVP) at a discount rate of USD $491M(USD $337M after tax).

  • Minera Alamos Inc., announced positive results of an independent Preliminary Economic Assessment (PEA) for its Cerro de Oro project in Zacatecas. Highlights of the PEA include an average annual gold production approaching 60K Oz (approx. 60K-to 70K Oz in years 1 through 4); a 8.2 mine life based on initial mineable total of 59M tonnes of 0.37 g/t Au, heap leached at an average rate of  approximately 20K tonnes per day of over 0.4 g/t Au in years 1 through 4; 477K Oz Au produced in loaded carbon/doré; a  life of mine (LOM) strip ratio of 0.3:1(waste: mineralization); a LOM all included sustaining cost (AISC) of USD $873 per Oz Au , averaging USD $763 per Oz Au in years 1 through 4; an after tax NPV at 5% discount rate of USD $150.5M and an internal rate return (IRR) of USD $111%; a pre-production capital cost of USD $28.1M (includes 30% contingency); a payback period of 11 months; and used crushing plant already purchased to reduce up-front capital requirements. The company also reported an updated mineral resource estimate containing 67M tonnes of 0.37 g/t Au(790K Oz Au contained) based on an upward revision of the base case resource metal price to USD $1,700 per Oz.
  • Oroco Resource Corp., announced that, based on drill results, expanded the North Zone mineralization, and confirmed higher grade at its Santo Tomas project in Sinaloa. Extension drilling highlights include hole NO19 with 0.26% and 0.006% Mo over 127.8M, plus 0.21% Cu and 0.008% Mo over 126m; hole   NO21 with 0.34% Cu and 0.008% Mo over 81.4m, plus 0.41% Cu and 0.018% Mo over 32.9M, and hole NO24 with 0.30% Cu and 0.016% Mo over 86.6m, plus 0.22% Cu and 0.007% Mo over 90.1m. High grade drilling highlights include hole NO22 with 0.37% Cu and 0.009% Mo over 152.1m, plus 0.21% Cu and 0.005% Mo over 102m; hole NO23 with 0.31% Cu and 0.005% Mo over 139m, including 0.55% Cu and 0.006% Mo over 56.7m; hole NO25 with 0.40% Cu and 0.004% Mo over 286m; and hole NO26 with 0.6% Cu and 0.01% Mo over 92.2m, plus 0.25% Cu and 0.009% Mo over 69.8m. A total of 35 holes (22,769m of drilling) have now been completed in the North Zone, spanning approximately 1,300m of strike length, with intersections of good grade mineralization returned in all holes for which the company has received assays.
  • Tarachi Gold Corp., received final metallurgy results for its Magistral Mill and Tailings project in Durango. Highlights include up to 99% of Cu in solution precipitated into high-grade in sulphidation, acidification, recycling and thickening (SART) concentrate; more gold expected to report to Merrill-Crowe circuit for greater metal value payability compared to assumptions used in Preliminary Economic Assessment; and lower mercury CN-solubility than previously assumed and potential for 2-stage SART process to remove mercury from concentrate.
  • Torex Gold Resources Inc., received approval from Mexico’s Secretariat of Environmental and Natural Resources (SEMARNAT) on the key, culminating environmental permit for its Media Luna project in Guerrero. The approval (MIA Integral) allows for operations to begin at Media Luna and builds on the receipt of the MIA Modification received last year, which allowed for the execution of development activities on the south side of the Balsas River. The Company has also received approval to increase the power draw at site to 45 megawatts.
  • Prime Meridian Resources Corporation provided an update on its La Verde project in Michoacan. The company and the vendor have elected to modify the La Verde project purchase agreement by changing the requirement for two USD $200K option payments due under the current agreement to USD $20K minimum monthly payments. With this modification, the work program expenditures for the next six months are projected as follow: USD $165,600 for monthly options payment; USD $22,434 for La Verde project-mining duties; and USD $262,200 for La Verde project-Phase 1 work program. The Phase 1   program will consist of Structural Mapping / Magnetometer Study; Prospecting / Geochemical Sampling; and 1,200m of Definition Drilling.

ON DEALS AND CORPORATE ISSUES

  • Starcore International Mines Ltd., announced results of its annual general meeting of shareholders (San Martin mine, Queretaro).
  • Riverside Resources Inc., regained 100% control of the La Union project in Sonora after Hochschild Mining Corporation announced its decision to not to proceed with the option. Riverside was reimbursed for past taxes and fees with more than USD $500K of new mineral exploration and consolidation work completed to-date as per the option agreement with Hochschild. “Exploration work completed to-date includes extensive field mapping, sampling, and geochemistry. The newly mapped and sampled areas show alteration features typical of CRD targets and particularly the gossan oxidation of potential sulfide bodies at shallow depths (<100m) that remain wide open for relatively low-risk, high-potential exploration”. Riverside will integrate all of the data and evaluate new partnership opportunities in the near future.

ON SOCIAL RESPONSIBILITY

  • Industrias Peñoles S.A.B. de and Fresnillo plc., work together for an appropriate and healthy habitat. Both companies have the purpose of contributing to the well-being of the population through sustainable mining practices. Therefore, they recognize the shared responsibility to create, maintain and develop an appropriate habitat for the life of all species, including people. Octavio Alvídrez, CEO of Fresnillo plc., stated that “promoting the urban development of the communities in which we operate, as well as preserving and restoring the biodiversity of the areas surrounding our facilities, is a priority in our management and a constant throughout the life cycle of each of our mining units”.
  • Industrias Peñoles S.A.B. de and Fresnillo plc., were awarded with a distinction in Ethics and Values ​​of the Industry 2022 in recognition of their corporate responsibility practices. Both Peñoles and Fresnillo plc have a social impact strategy through various outreach programs and thereby contribute to the well-being of families in the communities where they operate, in addition to promoting values ​​and self-development among their neighbors.
  • GoGold Resources Inc., presented its second annual sustainability report that sets out the company´s performance and achievements with respect to its environmental, social, and governance practices (ESG). Highlights of this report include 0.006 tCO2 per Oz AgEq produced; 0.004 tCO2e per tonne of ore processed; 9,500 hours of safety and professional development training; awarded the ESR distinction (Empresa Socialmente Responsables – Corporate Social Responsibility); USD $17.1M spent in local purchases, including USD $422K in community investment; and adoption of new policies related to Environment, Human Rights, Diversity Equity and Inclusion, Climate Change, and Water Resources.
  • MAG Silver Corp., announced the publication of its inaugural 2021 Sustainability Report. Highlights of this report include zero fatalities at the Juanicipio project and MAG Silver´s exploration projects; a Juanicipio project(one million hours) lost time injury frequency rate  of 10.8 (employees and mine contractors; excluding construction contractors; over 51,000 hours dedicated to safety training in 2021 at the Juanicipio project; risk management system reviewed and updated in 2021 and 2022; a freshwater use ratio of 4% and a renewable power ratio of 84% at the Juanicipio Project while in the construction phase; in 2021, MAG Silver benchmarked current Climate-related risk and opportunities performance with the recommendations of the Task Force on Climate-related Financial Disclosures; MAG’s 2021 commitment to increase Board and senior management diversity means that currently 38% of MAG’s Board and 40% of MAG’s employees are female; and MAG’s Human Rights Policy and Diversity, Equity and Inclusion Policy were updated and approved, complementing and enhancing pre-existing commitments.

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, banded quartz from an intermediate sulphidation vein system in a project in Zacatecas, Mexico.  Photo by Miguel A Heredia.