Technical Report

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

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By Miguel A Heredia

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

ON MEXICO ISSUE

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

ON EXPLORATION

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

ON MINING

  • No relevant news.

ON FINANCING

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

ON RESOURCES AND DEVELOPMENT

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

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

ON DEALS AND CORPORATE ISSUES

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

ON SOCIAL RESPONSIBILITY

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

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

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

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

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Geologists Christian StClair and Tomás Tapia in a copper stained specularite vein ridge in the Sonoran Desert. Picture by Jorge Cirett

By Jorge Cirett

During the 47th week of the year (November 22nd to November 28th, 2021), at least 17 press releases were announced by companies working in Mexico. To note, only three companies posted exploration advances on their properties, three more released Q3 reports, one reported concentrate theft, two released financing news and one on quarterly dividends, while four companies posted on project development or resource definition and one more on a mine in peril of closing by government red tape. ON MEXICO ISSUES, at MINNOVATION 2021 several companies received an award for social responsibility. In Oaxaca, inhabitants near Fortuna’s San José mine are being pressured to sign a document asking for the denial of expedition of an environmental permit, action that would result on the mine closure. ON EXPLORATION, In Sonora, Ridgestone Mining is preparing to drill El Cobre target on its Rebeico property. In Chihuahua, Radius Gold informed on excellent drilling results from the California target at its Amalia project; Silver Spruce updated on exploration plans at Pino de Plata.   ON MINING, Impact Silver, Altaley Mining and Discovery Silver presented their Q3 2021 reports. Consolidated Zinc informed on the armed robbery suffered at its Plomosas plant in Chihuahua, where 90 tonnes of Zn concentrate were stolen. ON FINANCING, Galore Resources and Canasil resources informed on the closing of financing rounds that accrued CAD$818.5 K and $810.7 K respectively. Alamos Gold declared a $48 M quarterly dividend for its shareholders, adding to a total of $235 M delivered in 12 years. ON RESOURCES AND DEVELOPMENT, GoGold Resources released initial metallurgical tests at Los Ricos North in Jalisco. Zacatecas Silver presented drilling results from the Panuco Central and Tres Cruces veins at its Zacatecas Silver project. Fabled Silver Gold informed on drilling results from its Santa Maria project in Chihuahua. First Majestic Silver filed an updated technical report for its Santa Elena and Ermitaño project in Sonora.   ON DEALS AND CORPORATE ISSUES, Fortuna Silver Mines is working with legal advisors to appeal the denial order received from SEMARNAT regarding its request for an extension of the environmental permit. ON SOCIAL RESPONSIBILITY, Industrias Peñoles, Fresnillo PLC, Torex Gold and Grupo Mexico informed on its support for communities, environment and education.

ON MEXICO ISSUES

  • Alfonso Durazo, Sonora’s governor, praised the social responsibility of the mining industry. This as he delivered awards to companies on the Sonora Mining cluster, for abiding by Responsabilidad Social Empresarial (Corporate Social Responsibility). Companies receiving the award included Peñoles, Autlán, Molymex and  Alamos Gold, among others. The event was part of MINNOVACION 2021.
  • Inhabitants of communities near San José del Progreso, Oaxaca, where Fortuna Silver’s San José mine is located, denounce pressure and intimidation by agrarian and municipal authorities to sign documents asking for denial of the environmental permit by SEMERNAT (The Mexican environmental regulator), and to risk losing government aid if not complying with the request.

ON EXPLORATION

  • Ridgestone Mining Inc. finalized plans for a drill program on El Cobre property, within its 3,500 hectare Rebeico project in Sonora. The program envisages 2,700 m in 14 reverse circulation (RC) holes to test the mineralization below historical workings that run for 200 m along strike. Recent surface sample results include 1.0 m @ 3.5% Cu, 0.32 gpt Au; 1.5 m @ 1.5% Cu, 0.44 gpt Au; 3.0 m @ 2.65% Cu; 1.0 m @ 2.62% Cu; 1.5 m @ 2.21% Cu; 3.0 m @ 2.0% Cu.
  • Radius Gold Inc. informed on more drilling results from the California target at the Amalia project in Chihuahua. Highlighted core length results comprise 12.8 m @ 259 gpt Ag, 0.54 gpt Au (including 3.2 m @ 705 gpt Ag, 1.92 gpt Au); 39.7 m @ 204 gpt Ag, 0.35 gpt Au (including 19.1 m @ 346 gpt Ag, 0.63 gpt Au). Broad multiphase mineralization up to 50 m in width has been intercepted along 1 km of the California 2.8 Km long structure, to 300 m of depth. Other targets along the structure are still to be drilled due to the current lack of roads. Drilling is underway at the 1.5 km long El Cuervo vein target, a subparallel structure between the Amalia and California structures, where stockwork veining and brecciation have been mapped at up to 40 m in width.
  • Silver Spruce Resources Inc. updated on exploration at its 397-hectare Pino de Plata property in Chihuahua. A Lidar survey has been completed and the generated high-resolution topography provides a base for the incoming drilling, structural lineament mapping and future exploration. Negotiations continue with the surface owner to gain access to some of the drill targets.

ON MINING

  • Consolidated Zinc Ltd. informed that on November 16th a group of armed bandits entered its Plomosas mine in Chihuahua to steal 90 tonnes of zinc concentrate valued at US$90 K. The security guard and employees were unharmed, but locked in a transport container.
  • Impact Silver Corp. released financial and operating results for the Q3 2021. At Zacualpan, 34,587 tonnes were milled @ 156 gpt Ag to produce 152 K Oz Ag. At the Guadalupe mine production is being ramped-up to pre-pandemic levels, and a fourth drill rig has been added to the company’s fleet. The Capire open pit deposit and processing plant are being reviewed eyeing a re-start of operations.
  • Altaley Mining Corp. released quarterly reports for Q3 – 2021. At its Campo Morado mine in Guerrero, 168.4 K tonnes were processed, recovering 66% Zn, 29% Pb, to produce 10,743 tons of Zn concentrate (45% Zn, 2.29 gpt Au, 724 gpt Ag), 2,690 tons of Pb concentrate (22%Pb, 1.56% Cu, 5.45 gpt Au, 919 gpt Ag). Total cash cost was US$0.45 per Zn Lb and AISC of US$0.70 per Zn Lb.
  • Discovery Silver Corp. presented its financial results for the Q3 2021 and an update on the activities at the Cordero project in Chihuahua. Metallurgical tests show recoveries of 80-89% Ag, 83-91% Pb, 81-90% from locked cycle tests in sulfides and 54-80% Ag, 61-75% Au on oxide and transition ore cyanidation bottle roll procedures. An updated mineral resource estimate has been produced with information from 224,000 m of drilling in 517 holes, with 87% of the resource in the measured and indicated category. Phase 2 drilling is ongoing and focused on upgrading inferred resources, resource expansion of bulk-tonnage mineralization and testing the high-grade veins in the deposit. A PEA is expected to be released before the end of the current quarter, and a PFS on 2022.

ON FINANCING

  • Alamos Gold Inc. declared a quarterly dividend of US$0.025 per common share, and the repurchase of 383 K shares with a cost of $2.9 M. During the year Alamos has repurchased $8.9 M in shares. Thus far in 2021 the company has returned $48 M to shareholders through dividends and share buybacks, accumulating $235 M in dividends in 12 years (Mulatos, Sonora).
  • Galore Resources Inc. closed its non-brokered private placement financing, raising gross proceeds of CAD$818.5 K (Dos Santos, Zacatecas).
  • Canasil Resources Inc. announced the closing of the non-brokered private placement previously announced to gather $500 K, same that ended accruing $708.7 K in gross proceeds. The company also received $102 K from the exercise of warrants, taking the total to $810.7 K (Nora, Durango).

ON RESOURCES AND DEVELOPMENT

  • GoGold Resources Inc. announced positive initial results of metallurgic tests at its Los Ricos North project in Jalisco. HQ core from 108 drill holes at the Casados, El Favor, La Trini and El Orito deposits was composited and tested in Canada laboratories. The composites from Casados, El Favor and La Trini were subjected to direct cyanidation leaching of Au and Ag, while the one from El Orito was treated by flotation to extract also the base metal content. Recoveries ranged from 86% to 96% Au and 90% to 96% Ag on Casados, El Favor and La Trini, while at El Orito were 86% Au, 90% Ag, 87% Pb, 90% Zn and 90% Cu.
  • Zacatecas Silver Corp. released results from the drilling program targeting the Panuco Central vein and the Tres Cruces vein at its Zacatecas Silver project in Zacatecas. Assay results for four of the holes at Tres cruces have been received, and the highlighted intervals comprise 1.85 m @ 224 gpt Ag, 0.49 gpt Au; 2.17 m @ 798 gpt Ag, 0.34 gpt Au; 3.00 m @ 203 gpt Ag, 0.85 gpt Au. “Three holes targeted a historical high-grade intercept in Central Tres Cruces, over 1 km to the northwest and along strike of the eastern Tres Cruces holes. Assays for hole PAN 2021-013, which intercepted almost 5 metres of sulphidic quartz vein, are pending”.
  • Fabled Silver Gold Corp. informed on results from drilling at its Santa Maria project in Chihuahua. The drilling targeted and intercepted the down plunge extension of holes that recently returned significant gold grades, extending the zone 200 m below. Highlighted core-length intercepts comprise 1.5 m @ 69 gpt Ag, 0.63 gpt Au; 0.45 m @ 45 gpt Ag, 0.86 gpt Au; 1.05 m @ 165 gpt Ag, 0.58 gpt Au; 1.05 m @ 67 gpt Ag, 1.18 gpt Au; 3.3 m @ 138 gpt Ag, 1.46 gpt Au, 1.4% Pb, 2.0% Zn (including 1.85 m @ 107 gpt Ag, 2.40 gpt Au, 2.4% Pb, 3.5% Zn) in one hole.
  • First Majestic Silver Corp. filed an updated technical report for its Santa Elena mine in Sonora. The report also includes the results of a pre-feasibility study (PFS) on the Ermitaño project, four kilometers from the Santa Elena processing plant. Measured and Indicated resources for both projects comprise 6.06 M tonnes @ 97 gpt Ag, 2.85 gpt Au, containing 18.9 M Oz Ag, 557 K Oz Au, while inferred resources stand at 6.25 M tonnes @ 80 gpt Ag, 2.43 gpt Au, containing 16.2 M Oz Ag, 490 K Oz Au.

ON DEALS AND CORPORATE ISSUES

  • Fortuna Silver Mines Inc . “is working with legal advisors to file an appeal to the denial order received from SEMARNAT regarding its request to extend its environmental impact authorization (EIA) for its San José mine in Oaxaca. The company reported it continues to work with the authorities. However, due to the lack of concrete answers, it will use other legal alternatives”. The San Jose mine started operations back in 2011, but one of its environmental permits expired last month, and SEMARNAT (the Mexican environmental regulatory agency) is denying the permit on grounds of a pending evaluation on the regulation of the mine’s infrastructure and an indigenous consultation.

ON SOCIAL RESPONSIBILITY

  • Industrias Peñoles and Fresnillo PLC informed on programs to aid education of the new generations in Coahuila, Durango, Chihuahua, Guerrero, Estado de Mexico, Sonora and Zacatecas.
  • Minera Media Luna (Torex Gold) is supporting the education of students in Guerrero with the donation of computing equipment and facilities as well as providing professional practices on its installations for up to 20 students at a time.
  • Fundación Grupo Mexico delivered through its “Vagón Verde” (Green train car) 8,000 tree saplings to the city of Celaya, Guanajuato.

On the image below: Geologists Christian StClair and Tomás Tapia in a copper stained specularite vein ridge in the Sonoran Desert. Picture by Jorge Cirett.

Santacruz Silver Updates Panuco Deposit, Veta Grande Project Resource Estimate to 19.5 Million AgEq Ounces Inferred

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Aug-29-19-NI-41-101-Report-V4-(Aug-28-19)-Final

Vancouver, B.C. — Santacruz Silver Mining Ltd. (TSX.V:SCZ) (the “Company” or “Santacruz”) reports that it is today filing on http://www.SEDAR.com a technical report titled “Technical Report, Veta Grande Project, Zacatecas State, Mexico” dated effective August 20, 2019 (the “Technical Report”) containing an updated mineral resource estimate, under National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”). The Technical Report supersedes all previous technical reports prepared for the Company relating to the Veta Grande Project.