Union

Tras 18 años, laudo definitivo obliga a Sindicato Minero a pagar 55 millones de dólares a trabajadores

/ Gambusino Prospector / Leave a comment

Por: María del Pilar Martínez 01.05.2025

La resolución que consta de más de 700 páginas, cuyas copias tiene este diario, describe el largo camino que debieron sufrir y enfrentar los trabajadores en busca de justicia.

Tras recibir esta condena definitiva, ahora corresponderá hacer las cuentas para determinar cuánto se le debe entregar a cada trabajador; pese a que se espera que el Sindicato quiera ampararse, cualquier intento será improcedente para alargar este proceso que ha llegado a su fin.

“En el expediente 14/2012, se ordena la apertura de incidente de liquidación con fundamento en el artículo 843 de la Ley Federal del Trabajo, a fin de conocer la base de trabajadores que, de 31 de octubre de 1988 prestaban sus servicios a las empresas Mexicana de Cobre y Mexicana de Cananea sobre la cantidad de 54 millones 84,470.90 dólares, que debe ser objeto de distribución proporcional, a fin de establecer proporción que corresponde a cada trabajador”.

Vale la pena resaltar que el laudo establece que en caso de que existiera diferencia con relación a la cantidad de $80,000.00 pesos moneda nacional que el Sindicato demandado entregó a cada uno de los aquí actores; debe cubrir la diferencia.

La versión del laudo establece que el Sindicato, quien tomó como suyos los recursos, debe pagar con todo y los rendimientos que se hayan ganado en los bancos en los que estuvieron depositados los 55 millones de dólares.

Cabe recordar que el fideicomiso se formó en 2005, por la venta de Mexicana de Cananea, pero se desintegró, según consta en el expediente, por Napoleón Gómez Urrutia, quien después de realizar dos huelgas en contra de Grupo México, recibió 55 millones de dólares, a través del fideicomiso F/9645-2 de Scotiabank Inverlat.

Puede continuar leyendo el artículo en la fuente: https://www.eleconomista.com.mx/empresas/18-anos-laudo-definitivo-obliga-sindicato-minero-pagar-55-millones-dolares-trabajadores-20250501-757232.html

Sindicatos de minería se reúnen en México, buscan fortalecer alianza internacional

/ Gambusino Prospector / Leave a comment

Por María del Pilar Martínez Martes 07 de Mayo de 2024 – 20:31

En el marco del segundo Encuentro del Frente Internacional Minero, trabajadores se pronunciaron por diseñar estrategias conjuntas para brindar apoyo en la defensa de los derechos de las y los trabajadores de sectores similares.

El secretario del Sindicato Nacional de Mineros, Napoleón Gómez Urrutia, recordó los abusos y las violaciones de la empresa minera Newmont Peñasquito contra los trabajadores mineros en Perú, Argentina y México. “La situación actual nos obliga a mantenernos unidos, pues solo con acciones coordinadas podremos enfrentar las acciones violatorias que transgreden nuestra dignidad como trabajadores y que atentan contra el bienestar de nuestras familias”, indicó.

Continuar leyendo el artículo en: https://www.eleconomista.com.mx/empresas/Sindicatos-de-mineria-se-reunen-en-Mexico-buscan-fortalecer-alianza-internacional-20240507-0130.html

The Mining and Exploration News in Mexico: Highlights on the Fifth Week of February 2024

/ Gambusino Prospector / Leave a comment

By Jorge Cirett                                             

During the 9th week of the year (February 26th to March 3rd, 2024), companies working in Mexico posted at least 23 news releases. One company reported on exploration at its property, one published its guidance for 2024, one released production results for the last quarter and one is stopping mining operations. Four companies announced financing rounds for a total of C$5.8 M, while one more announced a C$34 M financing. One company declared a dividend and one more the increase of its loan credit facility. One company informed on work at its advanced property and one more updated on ongoing development at a new property. One company is disposing of an interesting property, two announced director’s appointments and one more informed on its litigation process against the Mexican government. ON MEXICO ISSUES, the head of the Economy Secretariat announced the acquisition of the remaining 49% of the company producing salt from coastal flats in Baja California Sur. The first work pane under T-MEC was installed to review labor matters on a Zacatecas mine. ON EXPLORATION, in Sonora, Tocvan Ventures is to commence drilling at Pilar. ON MINING, Argonaut Gold announced its production guidance for 2024. Starcore International Mines released production results for the quarter. Golden Minerals is stopping mining at Velardeña, in Durango, and evaluating its alternatives. ON FINANCING, five companies informed on the opening or closing of financing rounds: Sierra Madre Gold and Silver (C$1 M), CMC Metals (C$1.2 M), Reyna Silver (C$2.5 M + $500 K), Defiance Silver (C$1.09 M), Vizsla Silver (C$34 M). Alamos Gold declared a quarterly dividend. Guanajuato Silver Company announced the increase of its gold loan credit facility to US$13.3 M. Aztec Minerals granted options to directors, management and consultants.  ON RESOURCES AND DEVELOPMENT, Torex Gold reported good drilling intercepts on brownfields and near mine exploration on several deposits at its Limón Guajes property in Guerrero. Avino Silver updated on development work at La Preciosa, in Durango. ON DEALS AND CORPORATE ISSUES, Ranchero Gold is disposing of its Santa Daniela property in Sonora. Silver Bull updated on the arbitration process on its dispute with the Mexican government. US Antimony and Hecla Mining announced director’s appointments. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • Raquel Buenrostro, head of the Economy Secretariat (Secretaría de Economía) announced the nationalization of Exportadora de Sal, the company that produces salt from coastal plains in Guerrero Negro, Baja California Sur, by buying the 49% stake of the Japanese Mitsubishi company (In the 1980’s, the Mexican government managed even businesses that sold bicycles, the actual administration seems adamant in getting back to those times).   
  • The governments of the United States, Canada and Mexico installed the first work pane since the signature of the T-MEC, to resolve if there is or not a violation of workers’ rights at Grupo Mexico’s San Martín mine, in Zacatecas.   

ON EXPLORATION

  • Tocvan Ventures Corp. is set to commence drilling at its Pilar project in Sonora. After a year of focusing on bulk sampling and land consolidation, the company is to begin systematic drilling for resource definition and additional targeting. “The initial focus will be on infill and step-out targeting within and adjacent to the Pilar Main Zone including where previous drill campaigns successfully discovered the southern extension of the Main Zone, returning 108.6 meters of 0.8 g/t Au, including 9.4 meters of 7.6 g/t Au and 5 g/t Ag.”

ON MINING

  • Argonaut Gold Inc. announced its 2024 guidance for production, cost per ounce and exploration expenditure forecast, including figures for its Mexican operations. At La Colorada, in Sonora, Argonaut Gold is aiming to produce 5 to 6 K Oz Au on residual operations, at $1,600 to $1,700 cash cost and an AISC of $1,600 to $1,700 per Oz AuEq. At San Agustín, in Durango, Argonaut intends to mine 6.8 to 7.1 M tonnes of ore grading 0.45 to 0.50 gpt Au, recovering 37% to 39% Au to produce 35K to 40 K Oz Au at cash cost $1,650 to $1,750 per Oz Au and an AISC of $1,800 to $1,900 per Oz Au. Argonaut’s Mexican operations are expected to be cash flow breakeven. “A financial advisor has been appointed to assess strategic alternatives for the Mexican operations, including the sale of one or more of the assets”.
  • Starcore International Mines Ltd. announced production results for the Q3 ended January 2024, at its San Martin mine in Queretaro. During the period 52.7 K tonnes were milled, grading 1.58 gpt Au, 14.6 gpt Ag, recovering 89.1% Au, 50.3% Ag, to produce 2,514 Oz AuEq.
  • Golden Minerals Co. announced that it has elected to stop operations at its Velardeña properties in Durango. The company restarted mining operations in December 2023 with the goal of achieving positive cash flow during the first half of 2024. As the initial performance of the mine and processing plant has not achieved the results projected, the decision to cease mining operations was reached. Golden intends to “evaluate potential alternatives for the Velardeña Properties, which may include a sale of properties or winding up of certain of the Company’s Mexico operations.”

ON FINANCING

  • Sierra Madre Gold and Silver Ltd. announced a non-brokered private placement aiming to raise $1 M “with an existing long-term institutional shareholder”. Net proceeds are to be used to fund the care and maintenance on, and the mine restart plan at La Guitarra mine, in Estado de Mexico.
  • CMC Metals Ltd. is to carry a non-brokered private placement for aggregate gross proceeds of up to $1.2 M (Gavilanes, Durango).
  • Reyna Silver Corp. increased the size of its non-brokered private listed issuer financing exemption (LIFE) private placement previously announced due to investor demand, to go from $1.5 M to $2.5 M. The company is also completing a concurrent non-brokered private placement for gross proceeds of up $500 K to purchasers pursuant to other applicable exemptions under NI 45-106 (Guigui, Chihuahua).
  • Defiance Silver Corp. closed the first tranche of its previously announced private placement, for aggregate proceeds of C$1.09 M. Defiance also extinguished a debt for shares in the amount of $46.6 K (Zacatecas, Zacatecas).
  • Alamos Gold Inc. declared a quarterly dividend of US$0.025 per common share (Mulatos, Sonora).
  • Vizsla Silver Corp. completed its previously bought deal prospectus for aggregate gross proceeds of C$34 M, which includes the exercise in full of the underwriter’s over-allotment option for 3 M offered shares. The company paid to the underwriter a cash commission equal to 6% of the gross proceeds raised under the Offering. (Panuco, Sinaloa).
  • Guanajuato Silver Company Ltd. announced that the previously arranged US$7.5 M Gold Loan Credit Facility financing with Ocean Partners UK Ltd. has been increased to US$13.3 M. “The loan facility is for a term of 36 months from the date of the initial draw; it is repayable in equal fixed monthly installments of gold totalling approximately 338 troy ounces per month for a period of 30 months following a six-month grace period from the date of the initial draw.” The company also completed its shares-for-debt transaction totaling C$414.7 K by issuing shares, including those to three non-arms-length parties to settle for C$40 K (El Cubo mine complex, Valenciana mines complex, San Ignacio, in Guanajuato).
  • Aztec Minerals Corp. granted 3.27 M stock options to directors, management and consultants of the company (Cervantes, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Torex Gold Resources Inc. released results from its 2023 drilling program at El Limón Guajes in Guerrero. Highlighted core length intervals comprise 22.91 m @ 10.94 gpt Au, 12 gpt Ag, 0.41% Cu; 7.50 m @ 8.09 gpt Au, 119 gpt Ag, 2.12% Cu At El Limón Sur Trend, 37.08 m @ 14.04 gpt Au, 9 gpt Ag, 0.38% Cu; 20.57 m @ 8.22 gpt Au, 29 gpt Ag, 1.02% Cu at El Limón Deep Trend, 12.33 m @ 8.92 gpt Au, 7 gpt Ag, 0.4% Cu; 4.66 m @ 2.13 gpt Au, 37 gpt Ag, 2.05% Cu at the Sub-Sill Trend and 4.00 m @ 11.78 gpt Au, 140 gpt Ag, 0.14% Cu; 3.55 m @ 10.07 gpt Au, 36 gpt Ag, 0.87% Cu at El Limón West Trend. During 2023, 60,699 m were drilled in 248 holes at El Limón Guajes brownfield and near mine exploration. For 2024, $12 M have been allocated to infill and step-out 54,500 m of drilling, focusing on further exploring the northeast trending structural corridors.
  • Avino Silver & Gold Mines Ltd. updated on ongoing development work at La Preciosa, in Durango. Current works and prep at the Avino mill include the rehabilitation of the office building, extensive sampling of historic surface mineralized stockpiles, haulage of such stockpiles to the Avino mill complex, reinforcement of walls at the mine entrance and previously developed underground areas and the rehabilitation of a thickener tank. “Once the rehabilitation work on the thickener is complete, production of a silver-gold concentrate from this stockpile material will commence which will be another milestone for the Company.”

ON DEALS AND CORPORATE ISSUES

  • Ranchero Gold Corp. approved on a special meeting of shareholders the disposition by its subsidiary the interest in four mining concessions covering the Santa Daniela property in Sonora. The disposition is subject to TSX approval, and the remaining US$1.9 M near-term cash payment will only be paid when the concessions have been transferred to Alamos Gold Inc.
  • United States Antimony Corp. added Joseph A. Carrabba as an independent director to its board (Juarez, Queretaro).
  • Silver Bull Resources Inc. updated on progress with its international arbitration claim against the Mexican government. Advances include the appointment of a three-person arbitration panel by the International Centre for Settlement of Investment Disputes, with a first session on February 13, 2024. A quantum expert was engaged by the company to assess its claims. Silver Bull is to file its Memorial in May 2024, with the Arbitration hearing slated for October 2025 (Sierra Mojada, Coahuila).
  • Hecla Mining Co. announced the appointment of Mark P. Board as a director, effective February 23, 2024 (San Sebastián, Durango).

ON SOCIAL RESPONSIBILITY

  • No Relevant News.

On the image below: subcrop of granitic rocks on a project in the Sonora desert. Picture by Jorge Cirett.

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

/ Gambusino Prospector / Leave a comment

By Jorge Cirett

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

ON MEXICO ISSUES

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

ON EXPLORATION

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

ON MINING

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

ON FINANCING

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

ON RESOURCES AND DEVELOPMENT

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

ON DEALS AND CORPORATE ISSUES

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

ON SOCIAL RESPONSIBILITY

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

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

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

/ Gambusino Prospector / Leave a comment

IMG_4731

By Jorge Cirett

During the 10th week of the year (March 2nd to March 8th, 2020), at least 25 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, several companies are interested exploring for lithium in Zacatecas-San Luis Potosí. Grupo Mexico plans to invest 78% more in 2020. Several mining companies are to invest more than $200 M in exploration in Mexico. The year 2019 was not good for the mining industry in the country, with an overall decrease in production. Durango’s governor announced mining investments for $100 M. The Peñasquito mine is expected to produce 1.6 M Oz AuEq per year for the next five years. The Industria Nacional de Autopartes (INA) is promoting the installation of a lithium battery plant. The Future of the Mexican Mining Industry seminar was held during the PDAC convention in Toronto, Canada.  Peñoles is to switch to LP gas its diesel truck fleet at one of its mines in Sonora (Milpillas?). ON EXPLORATION, in Durango, Chesapeake Gold optioned the Duraznito project, near the San Dimas mine. In Veracruz, Azucar Minerals released more drill results from its El Cobre project.  ON MINING, US Antimony reported the successful startup of the Los Juarez production facilities in Queretaro and Guanajuato. Mexus Gold announced small scale heap leach gold production at its Santa Elena mine in Sonora. Bacanora Lithium presented financial results for the last six months of 2019. Gold Resource presented production figures for 2019. Fresnillo PLC and Premier Gold Mines released financial results for 2019. ON FINANCING, One World Lithium announced the amendment of the terms on a number of  purchase warrants previously issued by the company. Consolidated Zinc entered into unsecured loan facilities with CZL major shareholders. Premier Gold closed its public offering, for gross proceeds of $38 M. ON RESOURCES AND DEVELOPMENT, Mag Silver released results from last year’s 28-hole program with over 33,000 m of drilling, including some exciting intercepts. Gold Resource Corp. updated annual reserve estimates for the Oaxaca Mining Unit. Aura Minerals provided mineral reserve and resource estimates to the end of 2019 for the Aranzazu mine in Zacatecas. SilverCrest released metallurgical test results for its Las Chispas project in Sonora.  ON DEALS AND CORPORATE ISSUES, Mithril Resources is acquiring the company that controls the Copalquin project in Durango. Oroco Resource closed the acquisition of Altamura Copper, furthering its interest on the Santo Tomás project in Sinaloa. Magna Gold is acquiring Alio Gold’s San Francisco mine in Sonora. Sable Resources appointed Ruben Padilla as CEO. Equinox Gold and Leagold Mining received approval for its merger. GR Silver Mining and First Majestic signed a binding agreement on the sale to GR of the Plomosas property in Sinaloa. Prime mining signed a long-term surface agreement on its Guadalupe de Los Reyes project in Sinaloa. Cheaspeake gold optioned the El Duraznito project in Durango. Fortuna Silver is involved in legal proceeding regarding a royalty on one of its mining concessions. ON SOCIAL RESPONSIBILITY. Peñasquito  received two awards by Infonavit for its excellent compliance on payments.

ON MEXICO ISSUES

  • Claudia Pavlovich, Sonora’s governor, praised the work women realize in the State, while on a trip visiting mining communities, like Turicachi, Nacozari de García and Cumpas, where she realized various activities.
  • Gustavo Puentes, Secretary of Economic Development, announced several companies are interested in investing in lithium exploration in the border between San Luis Potosi and Zacatecas.
  • Camimex (Cámara Minera de México) supports women collaborators that unite on the movement #UnDíaSinNosotras (One day without us) that is trying to eradicate genre violence.
  • The inauguration of Mexican Stand on the Prospectors and Developers of Canada Convention (PDAC) in Toronto counted with the participation of Graeme Clark, Canada’s ambassador in Mexico, Juan José Gómez Camacho, Mexico’s ambassador in Canada, Francisco Quiroga, subsecretary of Mining, José rosas Aispuro, Durngo’s governor and Salvador García, president of the Asociación de Ingenieros de Minas, Metalurgistas y Geólogos de México (AIMMGM). The Mexico stand was possible due to the support of the AIMMGM, Peñoles, Minera Media Luna, Newmont, Alamos Gold, Endeaavour Silver, Asociación de Mineros de Sonora, Construplan, Detector Exploraciones, SSR Mining Pitarrilla, Santacruz Silver Mining, Starcore, International Mines, MacClean, Diesel Cargo, Accendo Banco, ROD General Contractor and Ecodrill, as the Mexican government no longer supports international promotion.
  • Grupo Mexico plans to invest 78% more in 2020. On mining the budget is US$1,217 M to produce 1.12 M tonnes Cu, further US$367 M to invest in transport and US$412 M in the infrastructure division.
  • Mining industry companies are to invest more than US$200 M in exploration in Mexico during 2020. Torex Gold plans to invest US$13 M in the Media Luna project; Fresnillo will invest over US$135 M in exploration in Chile, Peru and Mexico; First Majestic Silver will invest US$28 M in San Dimas, Durango and Santa Elena, Sonora; Pan American Silver is to invest more than US$37 M at Dolores in Chihuahua and La Colorada in Zacatecas.
  • Mining did not have a good year in Mexico in 2019. Mining is ongoing in 25 States, produces 8.1% of the industrial GNP and had a 5.1% contraction as result of the policies of the actual Federal Government. Since December of 2018 no new mineral concession titles have been granted, and the environmental regulator, SEMARNAT has delivered just one Environmental Impact Report (Manifestación de Impacto Ambiental, or MIA). In Puebla, a local court maintains a suspension of work on El Gorrión mine (Ixtaca) based on a legal complaint by a communal group (ejido) on a mineral concession the company no longer has. The Cosalá mine in Sinaloa is paralyzed by a conflict between unions masterminded by Morena’s senator Napoleon Gómez Urrutia, reminiscent of the conflict suffered by Torex Gold a few months ago under the same terms. The projected investments for US$5,343 M were not achieved, with the projected real figure likely to be around 60%, and exploration at 36% of the expected. Coming interactions of the industry with the Environmental regulator the sub secretary of mining, Francisco Quiroga and Alfonso Romo are to try to better the condition of the industry.
  • The governor of Durango, José Rosas Aispuro announced at the PDAC convention in Toronto, the investment of US$100 M in the mining sector during 2020 in the State.
  • The Peñasquito mine in Zacatecas is the biggest gold mine in Mexico, the second largest for silver and one of the biggest producers of zinc and lead. The mine is expected to produce 1.6 M Oz AuEq per year during the next five years. The company is striving to reduce costs and optimize the operation.
  • The Industria Nacional de Autopartes (INA) promotes the installation of a battery plant based on lithium, to take advantage of the natural resources and the industrial prowess of the country. Bacanora Lithium plans to invest US$420 M on the installation of a processing plant in Bacadehuachi, Sonora, in order to produce 17 K tonnes a year. About 85% of the lithium producers are in Asia, and USA produces 20% of the batteries. The nearness to the USA and sea ports are other advantages for project owned by Bacanora Lithium.
  • During December 2019 mining grew by 0.9% thanks to the push given by a raise of 19.1% in lead production. For the year, mining decreased 1.5%, while lead production grew 13.3%. Los Gatos, in Chihuahua; Minera Capela in Guerrero; San Martin and Peñasquito in Zacatecas and production by Fresnillo aided in the growth seen by the bluish gray metal. Production rates from other metals show increments and decrements to the following tenor During December: Gypsum +14.4%, zinc +8.8%, silver +7.8%, sulphur +5.2%, coke -25.8%, iron pellets -7.3%, coal -5.2%, gold -2.2%, copper -0-8%. For the year: Overall -1.5%, gold -10.2%, silver +1.1%, copper +4.8%, zinc +7.0%, lead +13.3%, iron pellets -0.5%, coke -16.0%, Sulphur -14.7%, fluorite -5.0%, coal -2.0%, gypsum -0.6%. The trend reflects years of decreasing investment in mining, although some new developments might increase the production on lead, zinc, silver and copper.
  • The Future of the Mexican Mining Industry seminar was held during the PDAC convention in Toronto, Canada. Four environmentally focused conferences opened the seminar in which a dialogue table was set with the Mining Sub Secretary Francisco Quiroga, several governors, union leaders, mining company executives, financial analysts and congressmen.
  • Lithium exploration projects in Mexico: There are more than 20 lithium exploration projects in the country, most within Sonora, Zacatecas, San Luis Potosí, Baja California and Coahuila. The most advanced is Bacanora Lithium’s Sonora project in Bacadehuachi, but other interesting properties are comprised by OrganiMax’s Salar La Salada in Zacatecas, and Salar Santa Clara and Salar Caliguey in San Luis Potosí; Litio Infinito’s project in Sonora, adjacent to the ground held by Bacanora Lithium and One World Lithium’s Salar del Diablo project in Baja California.
  • Industrias Peñoles intends to change the fuel used by its mining trucks fleet in a mine in Sonora. The change involves modifying the trucks to run on LP gas instead of diesel (Milpillas mine?).

ON EXPLORATION

  • Chesapeake Gold Corp. announced it has an option to acquire El Duraznito project in Durango, which is 18 Km East of First Majestic’s San Dimas mine. Mineralization is represented by quartz veins and quartz bearing breccias along 1,500 m of longitude and 300 m vertically. Those structures are parallel to the San Dimas veins, and appear to be also of epithermal low sulfidation character. A series of rock chip samples on sub-parallel quartz bearing breccias have returned 45 m @ 1.6 gpt Au, 16 gpt Ag; 30 m @ 3.9 gpt Au, 48 gpt Ag; 23 m @ 1.8 gpt Au, 58 gpt Ag; 15 m @ 3.1 gpt Au, 24 gpt Ag. Channel samples on quartz veins returned 10 m @ 4.8 gpt Au, 464 gpt Ag; 2.5 m @ 3.9 gpt Au, 756 gpt Ag; 2.5 m @ 9.7 gpt Au, 343 gpt Ag; 3.0 m @ 2.8 gpt Au, 113 gpt Ag.
  • Azucar Minerals Ltd. released results from its ongoing program at El Cobre project in Veracruz. Core length intercepts released include: 158.0 m @ 0.64 gpt Au, 0.26% Cu (including 19.6 m @ 0.83 gpt Au, 0.28% Cu); 71.7 m @ 0.16 gpt Au, 0.12% Cu (including 17.7 m @ 0.04 gpt Au, 0.38% Cu); 179.5 m @ 0.20 gpt Au, 0.22% Cu (including 39.95 m @ 0.15 gpt Au, 0.63% Cu and 17.55 m @ 0.48 gpt Au, 0.32% Cu); 112.2 m @ 0.36 gpt Au, 0.26% Cu; 442.2 m @ 0.44 gpt Au, 0.23% Cu (including 158.0 m @ 0.64 gpt Au, 0.26% Cu); 197.5 m @ 0.32 gpt Au, 0.24% Cu (including 16 .0 m @ 0.25 gpt Au, 0.81% Cu); 193.5 m @ 0.27 gpt Au, 0.14% Cu.

ON MINING

  • United States Antimony Corp. reported the successful start up of the Los Juarez Au and Ag production at Los Juarez, Queretaro. Detailed mapping delineated jasperoid silica-rich mineralized pipes over an E-W strike length of three kilometres, and a maximum width of one kilometre. Highlighted individual 1.0-1.5 m assays on drill holes range from trace to 25 gpt Au, 13 to 451 gpt Ag and 0.08 to 1.19% Sb. With a mean grade of 1.09 gpt Au, 102 gpt Ag, 0.65% Sb, and recovery rates of 90% Au, 85% Ag, 70% Sb. The ore is being treated by flotation mill, flotation mill and caustic leach and flotation mill tailings and cyanide leach.
  • Mexus Gold US. Announced it is now producing gold daily at its Santa Elena mine in Sonora (not to mistake with First Majestic’s Santa Elena mine, also in Sonora). Mexus plans to produce 5 to 7 Oz Au daily, and then increase to 10 Oz Au per day by the end of the month.
  • Bacanora Lithium Plc. provided financial results for the second half of 2019. During the period Bacanora concluded an investment and offtake agreement with Ganfeng Lithium Co, Ltd., raised UK$14.4 M and retained a US$150 M conditional senior debt facility. Engineering work has continued, while full development capital for construction is being pursued.
  • Gold Resource Corp. presented production figures for last year, including figures from its Oaxaca mining unit. During the year, 29,435 Oz Au, 1.72 M Oz Ag, 1,859 tonnes Cu, 2,286 tonnes Pb, 5,734 tonnes Zn were produced. Apporting to that production, 629 .9 K tonnes were milled @ 1.73 gpt Au, 82 gpt Ag, 0.38%Cu, 1.88% Pb, 4.64% Zn at the Arista mine, part of the Oaxaca Mining Unit.
  • Fresnillo Plc. announced financial results for the year 2019. Silver and gold production diminished 11.6% and 5.1% respectively during the period. Total silver production was 47.4 M Oz, with most of such production coming from Saucito (15.9 M Oz Ag), Fresnillo (24.8 M Oz Ag), San Julián DOB (7.4 M Oz Ag), Ciénega (5.3 M Oz Ag) and San Julián veins (4.2 M Oz Ag). A total of 848 K Oz Au were produced, mostly from Herradura (496 K Oz Au), Noche Buena (105 K Oz Au), Saucito (72 K Oz Au), San Julián veins (62 K Oz Au), Ciénega (62 K Oz Au), Fresnillo (46 K Oz Au). The company also produced 49 K tonnes of lead, from Saucito (19.7 K tonnes Pb), Fresnillo (19.5 K tonnes Pb), Ciénega (4.4 K tonnes Pb ), San Julián (5.4 K tonnes Pb), and 78.6 K tonnes of zinc from Fresnillo (26.3 K tonnes Zn), Saucito (25.6 K tonnes Zn), San Julián (19 K tonnes Zn), Ciénega (7.6 K tonnes Zn). Cash cost per silver ounce varied between ($0.2) and $7 per Oz Ag on the different mining units, and gold between $818.6 and $847.8 per Oz Au.
  • Premier Gold Mines Ltd. released operating results for the quarter ending on December of 2019 and full year 2019 results, including figures from its Mexican operations. At the Mercedes mine in Sonora, 667.7 K tonnes were mined @ 2.91 gpt Au, 26 gpt Ag, recovering 95.8% Au, 34.0% Ag, to produce 59,901 Oz Au, 191.3 K Oz Ag. Co-product cash cost was $1,034 per Oz, and co-product AISC $1,263 per Oz Au. For the full year total capital expenditures were $18.8 M, focusing on underground mine infrastructure and development, as well as exploration and replacement of old mining equipment.

ON FINANCING

  • One World Lithium Inc. announced the amendment of the terms of 14.5 M outstanding common share purchase warrants, previously issued by the company (Salar del Diablo, Baja California).
  • Consolidated Zinc Ltd. entered into unsecured loan facilities with CZL major shareholders, the Copulos and Retzos Groups. The loan facilities are for A$400 K at an interest rate of 10% per annum, repayable by the end of June 2021 (Plomosas, Chihuahua).
  • Alamos Gold Inc. declared a quarterly dividend of US$0.015 per common share and introduced a dividend reinvestment and share purchase plan (Mulatos, Sonora).
  • Premier Gold Mines Ltd. closed its previously announced public offering for gross proceeds of $38 M, paying a 5% cash commission, with a reduced 2.5% cash commission on the Orion purchase (check note for further details) (Mercedes, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Mag Silver Corp. announced results from the 2019 28-hole program with 33,864 m of drilling on the Juanicipio JV property in Zacatecas. The latest exploration results confirm and expand the wide, high-grade mineralization in the Valdecañas Deep zone and the Anticipada vein, as well as confirming and expanding the Venada vein, and the discovery of the NE trending Valentina and Venadas II veins through drilling and development. Exceptional true width intercepts comprise: 5.7 m @ 3,884 gpt Ag, 8.4 gpt Au, 6.5% Pb, 9.7% Zn, 0.3% Cu; 21.1 m @ 129 gpt Ag, 1.7 gpt Au, 3.5% Pb, 7.8% Zn, 0.2% Cu; 21.2 m @ 147 gpt Ag, 1.2 gpt Au, 3.9% Pb, 8.8% Zn, 0.3% Cu; 1.0 m @ 187 gpt Ag, 10.6 gpt Au, 1.3% Pb, 4.4% Zn; 2.5 M @ 918 gpt Ag, 1.8 gpt Au; 1.2 m @ 279 gpt Ag, 0.7 gpt Au; 0.7 m 1,216 gpt Ag, 3.6 gpt Au.

Gold Resource Corp. updated annual reserve estimates, including figures for its Mexican operations. At the Oaxaca Mining Unit that comprises the Arista and the Mirador mine, 2.83 M tonnes @ 1.97 gpt Au, 122 gpt Ag contain 179,300 Oz Au and 11.1 M Oz Ag in proven and probable reserves.Gold Resource Reserve table 20192Gold Resource Corp Resource table 20191

  • Aura Minerals Inc. provided mineral reserves and resources estimates to the end of 2019, including figures for its Aranzazu mine in Zacatecas.Aranzazu Reserves 20191
  • SilverCrest Metals Inc. released metallurgical test results with increased precious metals recoveries at Las Chispas property in Sonora. After nine months of intensive metallurgical tests involving all veins, the results show an increase on recoveries to 96.1% Au and 93.9% Ag. The design criteria envisages a single stage crushing, a sag mill single stage, gravity recovery of 40% to 50% precious metals, leach recovery for gravity concentrate on a 96 hours leach circuit and leach recovery for gravity tails on 96 hours leach circuit.

ON DEALS AND CORPORATE ISSUES

  • Mithril Resources Ltd. presented the 2019 end of year report. The most significant event is the ongoing acquisition of Sun Minerals Pty Ltd., which holds an option on the Copalquin project in Durango. The said acquisition is expected to be completed during the present quarter, with field work and drilling to be undertaken shortly after, as the statutory permits have already been obtained.
  • Oroco Resource Corp. closed the acquisition of the balance of the ownership of Altamura Copper Corp., giving the company 100% control of the Santo Tomás porphyry copper project in Sinaloa. The Company holds a 56.7% interest in 1,172.9 ha core concessions of the project, and may increase the interest up to an 81% interest with an investment of up to CAD$30 M. Oroco also holds a 77.5% interest in 7,807.9 ha of mineral concessions surrounding and adjacent to the core concessions.
  • Alio Gold Inc. entered into a definitive share purchase agreement to sell Molimentales del Noroeste S.A. de C.V., which owns 100% interest on the San Francisco mine in Sonora, with Magna Gold Corp.. Under the agreement Alio Gold will receive 9.74 M shares of Magna and an additional $5M in cash a year from the closing.
  • Sable Resources Ltd. announced the appointment of Dr Ruben Padilla to the position of company president & CEO (Margarita, Chihuahua).
  • Equinox Gold Corp. and Leagold Mining Corp. received the clearance decision “from the Comisión Federal de Competencia Económica (“COFECE”) with respect to the pending merger between Equinox Gold and Leagold. COFECE approval was the final government agency approval required before completing the merger, which is anticipated to occur in the second week of March” (Los Filos, Guerrero).
  • GR Silver Mining Ltd. announced the signing of the definitive binding share purchase agreement to acquire all the shares of Minera La Rastra S.A. de C.V. from First Majestic Silver Corp., and the ownership of the Plomosas Silver project in Sinaloa. The 8,515 ha project includes the old Plomosas mine, four targets at the drill/resource stage and 16 exploration targets and and exploration database with more than 500 historical drill holes.
  • Prime Mining Corp. signed a long-term surface access agreement on its Guadalupe de Los Reyes property in Sinaloa. The agreement signed with the Ejido Tasajera, envisions an initial 15-year term that can be extended for another 15 years. Under the terms of the agreement US$38.3 K were paid on signature, with a following payment of US$20K on year four and US$30 K on year five. If construction begins prior to the fifth year, the annual payment increases to US$30 K, and the payment under commercial production to US$200 K.
  • Chesapeake Gold Corp. announced it has an option to acquire El Duraznito project in Durango, which is 18 Km East of First Majestic’s San Dimas mine. Chesapeake is to pay US$228 K in instalments to two concession owners for three years to gain a 60% participation at El Duraznito, and US$500 K to obtain an additional 20%. At the start of commercial production Chesapeake is to make a final payment of US$550 K to the vendors.
  • Fortuna Silver Mines, Inc. Provided an update on the status of the legal proceedings related to a disputed royalty on one of its extracting mining concessions at the San Jose mine in Oaxaca. Fortuna initiated legal proceedings against the Dirección General de Minas (DGM) to contest the procedure taken by the DGM to cancel one of its mining concessions if the disputed royalty plus VAT is not paid before March 15, 2020. A permanent stay of execution (amparo) was granted, but the final ruling might take months and the company might be required to pay the disputed royalty.

ON SOCIAL RESPONSIBILITY

  • INFONAVIT executives from the Zacatecas Direction provided the Peñasquito mine with two awards for its excellent compliance with the payments of dues to the housing fund of its workers.

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

On the image below: Hydrothermal breccia sealed by silica in a thermal spring in Baja California, picture by Jorge Cirett.

IMG_4731

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

/ Gambusino Prospector / Leave a comment

IMG_1363 - copia

By Jorge Cirett

During the 32nd week of the year (August 5th to August 11th, 2019), at least 36 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, The president of Mexico announced in a political rally that no more mining concessions are to be granted during his term in office. ON EXPLORATION, In Chihuahua, Kootenay has mobilized a drill rig to its Columba property. In Coahuila, Discovery Metals released high-grade results from underground sampling at Minerva. In Zacatecas, Alien Metals carried out surface sampling at Los Campos, Donovan and San Celso projects; Advance Gold started an IP survey at Tabasqueña. ON MINING, Gold Resource, Premier Gold, Hecla Mining, Golden Minerals, First Majestic, Coeur Mining, Argonaut Gold, Pan American Silver, Avino Silver, Endeavour Silver, Alio Gold, Torex Gold, Fortuna Silver and GoGold reported second quarter production and/or financial results for the second quarter. Mexus Gold poured first gold at its Santa Elena mine in Sonora. ON FINANCING, Excellon Resources entered into an agreement with a sole bookrunner for gross proceeds of $10 M. Santacruz Silver granted options to its directors, officers, employees, consultants and advisors. Oroco closed a first tranche for $900 K. Impact Silver completed the first series of a round of financing for $2.4 M in gross proceeds.   ON RESOURCES AND DEVELOPMENT, US Antimony continues mining at Los Juarez, Queretaro. Hecla presented drill results from San Sebastian, Durango. Orla Mining filed the FS on Camino Rojo Oxide project. VVC Exploration approved the construction of a pilot plant on its Northern Mexico Copper project. Minera Alamos received the needed environmental approval for mine construction at Santana, Sonora. Goldplay Exploration compiled all the exploration information on a 6 km trend outside the known resource in San Marcial, Sinaloa ON DEALS AND CORPORATE ISSUES, Discovery Metals filed an early warning report in respect to its holdings in Levon Resources. Tamino Minerals is working to remove the stop sign to become current on the OTC. Minera Alamos reported the retirement from the Board of Directors of Mr. Chester Millar, (a long time player in the Mexican Mining scene). Mako Mining informed the near completion of production from La Trinidad mine in Sinaloa. Chesapeake Gold re-purchased a 1% NSR from Wheaton Precious Metals. ON SOCIAL RESPONSIBILITY. Argonaut Gold engaged in multiple community projects during the second quarter on its operations at San Agustin (Durango), El Castillo (Durango), La Colorada (Sonora) and La Paz (Baja California Sur).

ON MEXICO ISSUES

  • No more mining concessions in my term: AMLO. The president of Mexico, Andres Manuel Lopez Obrador, announced this Sunday (August 11th, 2019) in a political rally in Concepcion del Oro, Zacatecas, that under his term no more mining concessions are to be granted. “To give concessions of the mining regions to national and foreign companies was a policy forwarded since the time of (Carlos) Salinas de Gortari, and up to 80 million hectares were delivered for mining exploitation. To grasp it: let’s think in our territory. Mexico has 200 million hectares, and 80 million hectares, about 40 percent of the national territory. Never in History so much of our sovereign soil had been transferred”, he said. He also reiterated that current concessions are to continue, but no new ones are to be delivered. “We are not to cancel (the concessions), but we are not to continue delivering new concessions for mining exploitation. Because it was too much what was delivered. If we analyze it, we are going to conclude that it wasn’t delivered to produce, but to speculate financially ………. With what has been delivered they have to produce. That’s the main purpose and not speculation. What we ask the mining companies is, first, take care of the environment, that no territory is destroyed, not to act as it is done in other countries”. He asked for Mexican miners to be paid as in the United States, or Canada, and that the same environmental rules be applied, also making a call for the salaries of workers to be raised, with the same benefits. (Editor’s note.- All the president arguments can be easily refuted to show that granting mining concessions is, and has been, very helpful for the country and countless of Mexicans. But there is no valid argument to present to the president that on the one hand is calling for more investment, while in the other hand is closing the door to it.)

ON EXPLORATION

  • Kootenay Silver Inc. has mobilized a drill rig to commence a 3,000 m core drill program at its Columba project in Chihuahua. “The first 12 holes of the drill program will be designed to test the F vein where underground development work extended to 200 meter depth and the historic mining occurred”.
  • Alien Metals Ltd. carried out some surface rock sampling at its Donovan, Los Campos and San Celso projects in Zacatecas, results pending.
  • Advance Gold Corp. started a 800 x 500 m 3D induced polarization (IP) geophysical survey on its Tabaqueña project, Zacatecas. The goal of the survey is to assess the depth potential below the near surface mineralized zone that was encountered in the andesites, with the graphitic phyllites below still open at depth.
  • Discovery Metals Corp. released assay results for 112 underground samples from its drill permitted Minerva Ag-Zn-Pb project in Coahuila. Highlighted results from the Minerva mine include 0.4 m @ 8,880 gpt Ag, 8.7% Zn, 43.2% Zn, 2.30% Cu, 0.3 m @ 1,200 gpt Ag, 24.8% Zn, 18.2% Pb, 0.15% Cu; 0.2 m @ 1,340 gpt Ag, 20.8% Zn, 19.6% Pb, 0.11% Cu; 0.9 m @ 517 gpt Ag, 5.7% Zn, 3.3% Pb, 0.07% Cu in veins, 0.3 m @ 1,485 gpt Ag, 8.6% Zn, 32.1% Pb, 0.10% Cu; 0.3 m @ 1,145 gpt Ag, 10.8% Zn, 34.8% Pb, 0.10% Cu; 0.5 m @ 220 gpt Ag, 34.6% Zn, 13.2% Pb, 0.05% Cu; 0.4 m @ 1,050 gpt Ag, 5.8% Zn, 26.4% Pb; 1.4 m @ 131 gpt Ag, 22.2% Zn, 2.7% Pb, 0.04% Cu in mantos. Underground samples from the Concordia area returned 0.7 m @ 848 gpt Ag, 2.7% Zn, 12.5% Pb, 0.24% Cu; 0.8 m @ 320 gpt Ag, nil Zn, 13% Pb, 0.06% Cu; 1.1 m @ 267 gpt Ag, 0.4% Zn, 6.3% Pb, 0.06% Cu in vein and limestone. At Tercia area, samples from a small working in diorite returned 0.5 m @ 226 gpt Ag, 0.2% Zn, 15.5% Pb; 0.5 m @ 181 gpt Ag, 0.2% Zn, 10.0% Pb; 1.3 m @ 124 gpt Ag, 3.2% Zn, 6.1% Pb in breccias (fault zones?).

ON MINING

  • Mexus Gold US. has poured gold at its Santa Elena mine in Sonora (not to mistake for First Majestic’s Santa Elena mine, also in Sonora). The company recovered gold from its first heap leach pad using its Merrill Crowe gold recovery system. Mexus continues to mine and crush ore for the 2nd lift on heap leach pad #1.
  • Gold Resource Corp. presented production results for the second quarter 2019. At the Oaxaca’s Mining Unit 7,881 Oz Au, 466.5 K Oz Ag, 482 tonnes Cu, 2,304 tonnes Pb, 6,054 tonnes Zn were produced. At the Arista mine 115.8 K tonnes were milled @ 1.87 gpt Au, 92 gpt Ag, 0.40% Cu, 1.96% Pb, 4.77% Zn. At the Aguila open pit mine 8,872 tonnes were milled @ 1.39 gpt Au, 43 gpt Ag. At the Mirador mine 6,737 tonnes were milled @ 1.10 gpt Au, 201 gpt Ag. The company had $7.93 M of cash and cash equivalents by the end of the period.
  • Premier Gold Mines Ltd. reported operating results for the second quarter 2019, including figures from its Mexican operations. At Mercedes, in Sonora, 167.6 K tonnes were milled @ 3.0 gpt Au, 27.2 gpt Ag, recovering 95.9% Au, 35.0% Ag to produce 15,532 Oz Au, 51,354 Oz Ag. Co-product cash cost was $1,053 per Oz Au, and the co-product all-in-sustaining cost was $1,254 per Oz Au. On by-product basis, cash cost was 1,044 per Oz Au and AISC $1,252 per OZ Au. A total of 11,281 m of drilling targeted the Diluvio, Marianas and Barrancas veins “to replace reserves support mine production, test extensions of the main mine trends and to test new geological targets.”
  • Hecla Mining Co. presented second quarter 2019 results, including figure from its operations in Mexico. At San Sebastian, Durango, 463.7 K Oz Ag, 3,547 Oz Au were produced at by-product cash cost $9.22 per Oz Ag and by-product AISC$15.50.
  • Golden Minerals Co. released financial results for the second quarter 2019. An important point on the report is the still to be completed $22 M sale of the Velardeña, Santa Maria and Rodeo properties, as well as the Velardeña mill, to Grupo Autlan. Golden had a net loss of $2.5 M , ending the period with $1.8 M in cash and cash equivalents.
  • First Majestic Silver Corp. announced financial results for the second quarter 2019. During the period 3.2 M Oz Ag, 6.4 M OZ AgEq were produced at cash cost $6.84 per Oz Ag, and AISC $ 14.76 per Oz Ag on a consolidated basis from its San Dimas (Durango), Santa Elena (Sonora), La Encantada (Coahuila), San Martin (Jalisco), La Parrilla (Durango), Del Toro (Zacatecas). At the end of the period the company had $94.5 M in cash and cash equivalents.First Majestic production table1
  • Coeur Mining Inc. reported second quarter 2019 financial results, including figures from its Mexican operations. At Palmarejo, in Chihuahua, 447.7 K tonnes were milled @ 2.18 gpt Au, 147 gpt Ag, recovering 87.7% Au, 81.8% Ag, to produce 28,246 Oz Au, 1.73 M Oz Ag at adjusted CAS $741 per Oz Au and adjusted CAS $9.17 per Oz Ag. Production started and is to be ramped up 400 tonnes per day (tpd) at La Nacion deposit.
  • Argonaut Gold Inc. announced its operating and financial results for the second qurter of 2019. At Cerro del Gallo in Guanajuato, Argonaut is advancing on the pre-feasibility study, whereas at San Antonio in Baja California participated in a public information meeting regarding the environmental impact assessment process, while advancing in environmental permitting. At El Castillo, Durango, 2.3 M tonnes of ore @ 0.39 gpt Au, 3.49 M tonnes of waste were moved at a rate of 64 K tonnes per day (tpd) to produce 14,361 Oz Au, 29,791 Oz Ag at cash cost $976 per gold equivalent ounce. At San Agustin (Durango), 1.96 M tonnes of ore @ 0.39 gpt Au, 1.41 M tonnes waste were moved at 37 K tpd to produce 12,684 Oz Au, 43,097 Oz Ag at cash cost $910 per gold equivalent ounce. At La Colorada (Sonora) 1.19 M tonnes of ore @ 0.46 gpt Au, 5.9 M tonnes of waste were moved at 78 K tpd to produce 11,723 Oz Au, 35,485 Oz Ag at cash cost $894 per gold equivalent ounce.
  • Pan American Silver Corp. reported unaudited results for the second quarter 2019, including figures from its Mexican operations. At La Colorada, in Zacatecas, 2.04 M Oz Ag, 1.1 K Oz Au were produced at cash cost $2.82 per Oz Ag and AISC $5.07 per Oz Ag. At Dolores, in Chihuahua, 1.23 M Oz Ag, 28.5 K Oz Au were produced at cash cost $6.87 per Oz Ag and AISC $22.30 per Oz Ag. “Drilling at the La Colorada mine has further defined the skarn mineralization, indicating a high concentration of base metal and silver mineralization over large widths”. By the end of the period the company had cash and shorth-term investments for $138.8 M, and working capital of $793.1 M.
  • Avino Silver & Gold Mines Ltd. released consolidated financial results for the second quarter 2019. During the period 200.9 K tonnes were milled to produce 426.1 K Oz Ag, 1,609 Oz Au, 1.14 M Lb Cu, or 599.5 K Oz AgEq, with consolidated cash cost per AgEq ounce of $10.89, and AISC $13.10 per AgEq ounce. At the end of the quarter Avino held $3.4 M of cash, and a working capital of $8.7 M.
  • Endeavour Silver Corp. released its financial results for the second quarter 2019. Consolidated production from its Guanacevi (Durango), Bolañitos (Guanajuato), El Cubo (Guanajuato) and El Compas (Zacatecas) mines was 1.06 M Oz Ag, 9,558 Oz Au, or 1.8 M Oz AgEq at an all-in-sustaining cost of $20.90 per Oz Ag net of gold credits. During the period received the final tailings permit for its Terronera project in Jalisco, and reported positive drill results from Bolañitos and Guanacevi.
  • Alio Gold Inc. reported second quarter 2019 results, including figures from its operations in Mexico. At San Francisco, in Sonora, produced 10,230 Oz Au, 5,112 Oz Ag, with a by-product cost of $1,077 per Oz Au and an AISC of $1,079 per Oz Au. In January 2019 Alio stopped active mining in the San Francisco pit and focused on processing the low grade stockpile, which is to continue until the end of the year, after which only residual leaching is to go on.
  • Torex Gold Resources Inc. announced financial and operating results for the second quarter 2019. At El Limon-Guajes in Guerrero, 145.7 K tonnes per day (tpd) were moved, including 19,890 tpd of ore @ 2.91 gpt Au, with a recovery of 88% Au to produce 113,645 Oz Au at cash cost $605 and AISC $760. The Muckahi mining system is said to be on the way to demonstrate its efficacy by year end. Torex released a maiden underground mineral resource estimate for El Limon Deep of 797 K tonnes @ 5.52 gpt Au, containing 171 K Oz Au as an indicated mineral resource. The company had a cash balance of $131 M by the end of June.
  • Fortuna Silver Mines Inc. presented consolidated financial results for the second quarter 2019, including figures from its Mexican operations. At San Jose, Oaxaca, 271 K tonnes were milled at a rate of 3,045 tpd, grading 273 gpt Ag, 1.78 gpt Au, with a recovery of 91% Ag, 90% Au to produce 2.16 M Oz Ag, 13,204 Oz Au at cash cost $6.20 per Oz Ag and an AISC of $9.3 per Ag Oz. By the end of the period Fortuna held $77.2 M in cash and cash equivalents.
  • GoGold Resources Inc. reported second quarter results 2019. During the period GoGold produced 451 K Oz Ag from the Parral tailings. By the end of June the company had $9.0 M in cash and marketable securities and no debt.

ON FINANCING

  • Excellon Resources Inc. entered into an agreement with Cormark Securities Inc. as sole bookrunner and lead underwriter to buy units of the company for gross proceeds of approximately $10 M (Platosa, Durango).
  • Santacruz Silver Mining Ltd. granted 8.5 M stock options options to its directors, officers, employees, consultants and advisors (Veta Grande, Zacatecas; Rosario, San Luis Potosi).
  • Oroco Resource Corp. closed the first tranche of the previously announced non-brokered private placement for gross proceeds of $900 K (Santo Tomas, Sinaloa).
  • Impact Silver Corp. completed the first series of the third tranche of the non-brokered private placement previously announced and updated, receiving aggregate gross proceeds of $2.44 M. The company intends to complete a second series of the third tranche for gross proceeds of $554.2 K. Impact has paid $56 K to Infor Financial Inc. and $50 K to Canaccord Genuity Corp. as finders fee (Zacualpan, Estado de Mexico).

ON RESOURCES AND DEVELOPMENT

  • United States Antimony Corp. continues mining in two open pits at Los Juarez mine in Queretaro. At the Puerto Blanco mill in Guanajuato maintenance and improvements are being made to support increased production. At the Puerto Blanco leach circuit the plastic liner and fire assay equipment have been purchased. At the Madero smelter in Coahuila, The caustic leach plant has been tested and is operational to produce gold, silver, and antimony.
  • Hecla Mining Co. added new mineralization by drilling on the Middle and El Toro veins, potentially adding oxide mine life to San Sebastian, in Durango. Near-surface mineralisation has been defined by drilling for over 1,200 m along strike and 160 m of depth. Recent intercepts include 2.40 m @ 874 gpt Ag, 11.5 gpt Au; 1.50 m @ 398 gpt Ag, 1.86 gpt Au; 3.41 m @ 236 gpt Ag, 3.42 gpt Au. “Preliminary engineering studies have begun to evaluate the potential of both open pit and underground mining options at El Toro and drilling in this area is planned to continue through the third quarter.”
  • Orla Mining Ltd. filed a technical report on its Camino Rojo project, Zacatecas. The company previously released the results of the feasibility study (FS) for the oxide part of the mineralized body, which envisages the movement of 44 M tonnes @ 0.73 gpt Au, 14.2 gpt Ag to leach pads, and a recovery of 64% Au, 17% Ag.
  • VVC Exploration Corp. board of directors approved the start of a pilot mine on the Gloria Zones of its Northern Mexico Copper Project (Samalayuca) in Chihuahua. The plan envisions open pit mining and heap leach extraction by electrowinning (SX-EW) starting at 2 K tonnes per day (tpd) of mineralized material, scalable to 4 K tpd.
  • Minera Alamos Inc. received the approval of the environmental impact statement (Manifestación de Impacto Ambiental, or MIA) by SEMARNAT, the regulatory federal environmental agency, rendering the company with the key approvals for the construction of  commercial scale mining facilities at its Santana project in Sonora.
  • Goldplay Exploration Ltd. compiled all the exploration information supporting that its San Marcial project in Sinaloa has a strong precious metal potential, beyond the already defined resource. Five known areas over a 6 km trend include: Nava, with trench sampling of up to 24 m @ 2.1 gpt Au; Chachalaca Micuines, where several rock chip samples returned 1m @ 1.0 – 5.0 gpt Au, and up to 0.9 m @ 13.3 gpt Au; Guacamayo, with a trench interval returning 24 m @ 219 gpt Ag, 0.25 gpt Au; Resource area, on which recent assays of drill holes identified new gold mineralisation outside the resource, with true width intervals (tw) of 1.0 m @ 2.5 gpt Au, 8.4 m @ 0.7 gpt Au, 12 m @ 0.2 gpt Au; Faisanes, where recently a drill hole interval of tw 0.9 m @ 204.6 gpt Au.

ON DEALS AND CORPORATE ISSUES

  • Discovery Metals Corp. filed an early warning report in respect of its holdings in Levon Resources Ltd., now beneficially owns or controls 117.1 M Levon Shares, representing all of the issued and outstanding Levon Shares. Discovery did not own or control, directly or indirectly, any shares in Levon prior to the Arrangement. (Puerto Rico, Coahuila; Cordero, Chihuahua).
  • Tamino Minerals Inc. informed that “The company is not planning to complete a REVERSE SPLIT at this moment and is not in the company’s plans to do this.” Furthermore stating that “no dilution is guaranted” as its latest DTCC Share Position Report shows that the company has 149.8 M common shares in the float. The company is also working on preparing financial statements in order to remove the stop sign to become current on the OTC Markets (El Volcan, Sonora).
  • Minera Alamos Inc. reported the retirement from the Board of Directors of Mr. Chester Millar. Mr Millar (born 1927) was involved in multiple heap leach mining projects in Mexico for several decades, and is included in the Canadian Mining Hall of Fame since 2008 (Note by editor.- our sincere thanks and respect to Chester Millar for his contributions to the mining industry in Mexico).
  • Mako Mining Corp. informed gold production from the Trinidad mine in Sinaloa is nearing completion. Mining operations ceased at the end of March, and most of the crushing plant has been moved to another project in Nicaragua. The company has been unsuccessful in receiving any proceeds from the claim due to the damages sustained at La Trinidad from Hurricane Willa in October 2018, and legal actions have commenced against the insurer provider and their reinsurers. “Discussions are underway with the mining contractor for La Trinidad and the Mexican government regarding significant payables still outstanding at our Mexican subsidiary that holds La Trinidad”. Mako believes that the company has properly structured its Mexican subsidiary in a way that these liabilities do not extend outside of Mexico, whereby any proceeds from the sale of the equipment, or success in the insurance litigation, will be for the benefit of Mako. Discussions are proceeding with the mining contractor with the goal of reaching a mutually acceptable settlement. Finally, all other assets held in Mexico are to be sold or liquidated on due course (Note of editor.- From the outside, and with no further information other than what’s on the press release, the remarks on the isolation of the parent company from any litigation while leaving the country with debts outstanding are the kind of practices that make foreign companies easy targets for interest groups on any country. In short, please do not do that).
  • Chesapeake Gold Corp. has exercised an option to re-purchase a one percent (1.0%) net smelter returns royalty (NSR) on its Metates Au-Ag-Zn project, Durango. The NSR was purchased from Wheaton Precious Metals Co., a subsidiary of Wheaton Precious Metals Corp. for US$9.0 M.

ON SOCIAL RESPONSIBILITY

  • Argonaut Gold Inc. engaged in multiple community projects during the second quarter of 2019. Received the nationally awarded Environmental Socially Responsible Company recognition at the El Castillo Complex for the seventh consecutive year, and held an opening ceremony of a new plant nursery at San Agustin (also in Durango). At La Colorada (Sonora), San Juan del Rio (Durango) and San Antonio (Baja California Sur) hosted a Children’s Day celebration. At La Colorada (Sonora) assisted, in collaboration with the State of Sonora Secretariat of Education and Culture, with the rehabilitation of educational facilities and donated computers, as well as hosted a women’s community workshop in La Colorada. Finally, hosted a health and wellness community workshop in La Paz, Baja California Sur.

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

On the image below: quartz veinlets and quartz filed breccia in metamorphic rocks of a project in Oaxaca. Picture by Jorge Cirett

IMG_1363 - copia

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

/ Gambusino Prospector / Leave a comment

Inguaran Feb 2011 151 - copiaBy Jorge Cirett

During the 22nd week of the year (May 27th to June 2nd, 2019), at least 27 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, on a move that is likely to paralyze the processing of documents at all regional offices of the Direccion General de Minas, the federal government fired all non-unionized workers. The Peñasquito mine in Zacatecas has now been closed by an illegal blockade for more than a month. ON EXPLORATION, In Sonora, Sonoro Metals provided an update on drilling at its Cerro Caliche property. In Chihuahua, Radius Gold released results on two more holes at its Amalia project. In Zacatecas, Galore Resources is mobilizing a rig to drill the El Alamo and Los Gemelos projects. ON MINING, Impact Silver, Telson Resources and Santacruz Silver presented its first quarter 2019 financial and/or operational results. Endeavour Silver updated on its performance plan. Camrova provided an update on mining and mine life plans for the Boleo mine in Baja. ON FINANCING, Prize Mining completed the first tranche of financing for $630 K; Ethos Gold announced a financing round intended to raise $225 K. Magna Gold completed a  private placement for CAD$2.67 M. Silver One is to start trading on the OTCQB Marketplace. ON RESOURCES AND DEVELOPMENT, Gold Resource released more drill results from its El Aguila project in Oaxaca. Fresnillo is investing US$5 M at La Cienega mine in Durango. GoGold released assay results from trenching at its Los Ricos property in Jalisco. Defiance Silver is drilling a geophysical anomaly along the Veta Grande vein system in Zacatecas. ON DEALS AND CORPORATE ISSUES, Radius Gold granted Panamerican Silver an option to earn up to 65% on the Amalia project, in Chihuahua. Magna Gold is to commence trading on June 5, 2019. The company optioned the Mercedes property and lately the Las Marias and Las Cabañas properties, in the vicinity Mercedes. Discovery Metals and Levon Resources combined their enterprises on an agreement that gives Discovery and Levon shareholders 50.4% and 49.6% ownership respectively. Altos Hornos de Mexico (AHMSA) bank accounts have begun unfreezing by Mexican authorities.

ON MEXICO ISSUES

  • The federal government fired all non-unionized workers from the regional offices of the Dirección General de Minas (Chihuahua, Durango, Guadalajara, Hermosillo, Puebla, Queretaro, Saltillo, Zacatecas), in a move that is very likely to paralyze the already slow pace of paperwork at this government branch. Releasing of ground for staking, issuing concession titles, title reductions, cartographic information and contract registration are just some of the processes likely to be affected by this event (Personnel reduction is a cost saving strategy by the present federal administration, strategy that is feared to be likely to result in the centralization, slowing and paralysis of many government services in the coming months).
  • The Peñasquito mine in Zacatecas has been now affected by an illegal blockade for more than a month. So far authorities at all levels continue to advise “negotiations” as the way to solve the illegal blockade, being careful not to mention any applicable law.

ON EXPLORATION

  • Galore Resources Inc. announced the mobilization of a drill rig to El Alamo project in Zacatecas. The 2,500 m diamond drill program can be followed by additional 1,500 m of drilling at Los Gemelos project, also in Zacatecas. El Alamo consists of Cretaceous sediments, mostly limestone with some siltstone and chert, with alteration and mineralization represented by varying amounts of silicification and iron-oxide bodies after sulfides. The target has a minimum strike length of 500 m and 200 m width. Trenching highlighted values of up to 20.4 gpt Au, whereas drilling encountered widespread anomalous gold, running up to 17.1 gpt Au. Coarse gold recovery by gravity was attempted at the nearby Los Gemelos property with a partner, but the agreement on such endeavor has been terminated due to the lack of results. The drill target at Los Gemelos are porphyry intrusive related gold-copper skarns.
  • Radius Gold Inc. has completed six diamond drill holes totaling 1,743 m at its Amalia project in Chihuahua. Assays have been received for the second and third holes (results on the first hole were previously released), highlighting the intercept of 5m @ 647 gpt Ag of white chalcedonic stockworks, silicification and hydrothermal breccias. The remaining three holes (results pending) cut wide intervals of moderate to strong silica and adularia alteration, brecciation, quartz sulphide veinlets and trace fine to moderate black sulphides.
  • Sonoro Metals Corp. provided an update on the last 20 holes at its Cerro Caliche project in Sonora. Highlighted intercepts comprise 9.15 m @ 1.26 gpt AuEq at Japoneses, 3.05 m @ 6.18 gpt AuEq; 9.14 m @ 1.33 gpt AuEq at La Española, 15.24 m @ 0.56 gpt AuEq at Guadalupe, 7.6 m @ 1.14 gpt AuEq at Chinos Altos, 10.67 m @ 1.06 gpt AuEq, and 10.67 m @ 0.74 gpt AuEq at Buena Suerte. Almost 90% of the 10,000 m drill program is now complete.

ON MINING

  • Impact Silver Corp. released its first quarter 2019 financial and production results. The company processed 35.8 K tonnes @ 167 gpt Ag to produce 163.6 K Oz Ag. Revenue was $3.0 M, with a net loss for the quarter of $0.9 M. Costs per tonne processed have been reduced by 10% from last year, as the company continues to focus on cost reductions. Dense media separation is being evaluated for treating ore from the Capire project, and a new concentrate sales partnership has been signed. The company had cash of $0.4 M and trade and other receivables of $1.6 by the end of the period.
  • Endeavour Silver Corp. updated on its operating and financial performance plan initiated on recent months. The plan involves “changes to mine-site management and contractors, changes to employee and contractor supervision, renting used mining equipment and leasing new mining equipment, and revising the 2019 mine plans for all four mines, particularly Guanacevi. The Company has cut operating and administrative costs, reduced the employee and contractor workforce by 18% and deferred all discretionary expenditures”.
  • Telson Mining Corp. reported first quarter 2019 financial results. At Campo Morado in Guerrero, 152.1 K tonnes of ore @ 4.25% Zn, 1.14% Pb, 118 gpt Ag, 1.08 gpt Au were mined at a daily rate of 1,811 tonnes (tpd); 148.3 K tonnes were processed (1,765 tpd), recovering 69% Zn, 33% Pb to produce 9.7 M Lb Zn, 1.5 M Lb Pb, 212.7 K Oz Ag, 895 Oz Au at cash cost of US$0.71 and AISC US$1.01 per Lb Zn produced, obtaining a mine operating profit of C$3.05 M. At Tahuehueto in Durango, pre-production mining rendered approximately 21.6 K tonnes of ore. Telson produced 168 tonnes of lead concentrate (39% Pb, 6% Cu, 80 gpt Au, 840 gpt Ag) and 218 tonnes of Zinc concentrate (44% Zn, 9 gpt Au, 68 gpt Ag). Recoveries stood at 81% Au, 86% Ag, 90% Pb, 60% Zn, 88% Cu.
  • Santacruz Silver Mining Ltd. reported operating and financial results for the first quarter 2019. During the period 42.9 K tonnes were processed to produce 257 k Oz AgEq at cash cost $20.64 and an AISC of $24.38. Revenue was $2.49 M on mining operations and $790 K on mining services, reporting a net loss of $1.84 M (Veta Grande, Zacatecas; Rosario, San Luis Potosi).
  • Camrova Resources Inc. provided an update on the Boleo mine activities in Baja California Sur. The project is run by Korea Resources Corp, the majority shareholder, with Camrova holding a 7.24% stake that gives it rights to attend board meetings. For 2019 the production forecast of underground ore is 508 Kt @ 1.19% Cu and 2.44 Mt of open pit ore @ 80% Cu. Recoveries are expected to be 80.4% Cu, 29.9% Co, 4.2% Zn to produce 19,697 t of copper cathode, 419 t of cobalt and 1,016 t of zinc, resulting in negative free cash flow of $21M after payment of $25M in interest. It is also forecasted a 16 years mine life ending in 2034 by which time all debt is projected to be repaid, without a return of any of the capital that has been invested to date.

ON FINANCING

  • Prize Mining Corp. closed the first tranche of a non-brokered private placement, for gross proceeds of $630 K (Manto Negro, Coahuila).
  • Magna Gold Corp. completed a private placement financing for gross proceeds of CAD$2.67 M (Mercedes, Sonora).
  • Defiance Silver Corp. granted 990 K options to directors, officers and employees of the company at an exercise price of $0.195.
  • Silver One Resources Inc. shares will commence trading on the OTCQB Marketplace under the symbol “SLVRF” at open of markets on May 31, 2019(La Frazada, Nayarit).
  • Ethos Gold Corp. announced a non-brokered private placement to raise gross proceeds of $225 K (La Purisima, Chihuahua).

ON RESOURCES AND DEVELOPMENT

  • Gold Resource Corp. released further drilling results from its El Aguila property in Oaxaca. “High-grade mineralization intercepted 175 meters along the northern strike and 200 meters up-dip in vertical elevation significantly expanding the Arista Mine”. Highlighted intercepts comprise 3.45 m @ 2.45 gpt Au, 17 gpt Ag, 0.42% Cu, 1.4% Pb, 5.8% Zn; 1.45 m @ 4.35 gpt Au, 91 gpt Ag, 0.35% Cu, 1.5% Pb, 1.7% Zn; 11.95 m @ 1.04 gpt Au, 494 gpt Ag, 0.14% Cu, 0.4% Pb, 1.1% Zn (including 2.50 m @ 2.68 gpt Au, 1,420 gpt Ag, 0.33% Cu, 1.3% Pb, 3.2% Zn); 8.02 m @ 0.56 gpt Au, 395 gpt Ag, 0.06% Cu, nil Pb, 0.1%Zn.
  • Fresnillo PLC. is investing US$5 M at its La Cienega mine in Durango. The company is to undertake an economic evaluation of the plant expansion, intensify exploration on several targets and permitting the fourth tailings dam. The 4,000 tonne/day (tpd) mining unit has been in operation since 1992, currently with a labor force of 513 employees and 544 workers by contractors. On 2018 the plant processed 1.32 M tonnes @ 1.65 gpt Au, 164 gpt Ag, to produce 66,869 Oz Au, 6 M Oz Ag, 4,799 tonnes Pb, 5,892 tonnes Zn.
  • GoGold Resources Inc. released assay results from 23 exploration trenches completed at its Los Ricos project in Jalisco. Geological mapping, sampling and trenching defined at least five new targets, identifying mineralisation for further 1.5 Km along strike, taking the system to a total longitude of 3.2 Km, on 1 to 25 m widths. Highlighted results (on estimated true width) include 22 m @ 0.92 gpt Au, 54 gpt Ag; 16.0 m @ 2.53 gpt Au, 187 gpt Ag; 21.0 m @ 0.44 gpt Au, 47 gpt Ag; 18.0 m @ 3.50 gpt Au, 71 gpt Ag; 7.4 m @ 2.16 gpt Au, 31 gpt Ag; 5.6 m @ 3.32 gpt Au, 49 gpt Ag; 9.1 m @ 1.73 gpt Au, 112 gpt Ag; 16 m @ 0.55 gpt Au, 163 gpt Ag; 17.6 m @ 0.76 gpt Au, 121 gpt Ag; 10.1 m @ 1.42 gpt Au, 164 gpt Ag; 8.8 m @ 1.95 gpt Au, 129 gpt Ag.
  • Defiance Silver Corp. commenced a drill program targeting a large induced polarization (IP) geophysical target on the Veta Grande vein, SE of the San Acacio Silver deposit (with an inferred resource of 17 M Oz Ag @ 182 gpt Ag). The program is testing a 450 m step out on the Veta Grande vein system

ON DEALS AND CORPORATE ISSUES

  • Radius Gold Corp. has granted Pan American Silver Corp. the option to earn up to an initial 65% interest in the Amalia project in Chihuahua, by making cash payments to Radius totaling US$1.5 M (of which US$100 K has been received) and expending US$2 M on exploration over four years. Pan American may earn an additional 10% by advancing the property to preliminary-feasibility (Amalia, Chihuahua).
  • Magna Gold Corp. informed that its qualifying transaction is scheduled to close on June 5, 2019 pursuant to the policies of the Exchange. Trading of the common shares of Magna is expected to resume on the Exchange under the symbol “MGR”. The company has optioned 100% interest in two mining claims (the 345 ha Mercedes property in Sonora) for a four-year period, paying an aggregate of US$1.34 M paid in installments, starting on the sixth month of the effective date of the agreement and issue 2.44 M shares to the vendor. The seller is to retain a 3% NSR capped at $3.5 M, which can be bought at $500 K per percentage point within the first three years of production.
  • Magna Gold Corp. entered into an agreement to acquire the Las Marias property and Las Cabañas mineral claims. Las Marias consists of seven concessions covering 646 hectares adjacent to its flagship Mercedes property and Las Cabañas consists of two concessions covering 248 hectares 10 km from the Mercedes property. The total purchase will be $250 k and the issuance of 1 M common shares of the company. “Magna’s total land tenure will increase to 1,239 hectares of highly prospective ground”.
  • Discovery Metals Corp. and Levon Resources Ltd. entered into an arrangement agreement to combine both enterprises to create a “leading silver-focused exploration and development company that will control several district-scale projects in Mexico”. Discovery has agreed to acquire all of the issued and common shares of Levon, with Levon’s shareholders receiving 0.55 shares of Discovery for every Levon share held. Upon completing the transaction former shareholders of Levon will control 49.6% of the Discovery shares outstanding. Discovery holds a 150 K hectares land package in Coahuila, encompassing three shallow and high-grade silver-zinc-lead projects, while Levon’s primary asset is the Cordero project in Chihuahua, with 990 M tonnes @ 32 gpt AgEq and 282 M tones @ 56 gpt AgEq in indicated and inferred mineral resources respectively.
  • Altos Hornos de Mexico S. (AHMSA) bank accounts have begun unfreezing by Mexican authorities, allowing normal activities to be resumed. “The bank accounts of the steelmaker were frozen by Mexico’s financial intelligence unit earlier in the week on suspicion of money laundering. The move to unfreeze the accounts follows the arrest in Spain of AHMSA chairman Alonso Ancira, who was detained by Interpol on May 28.”

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

On the image below, galena-sphalerite-pyrite-chalcopyrite-quartz vein piece from a mine in Michoacan. Picture by Jorge Cirett.

Inguaran Feb 2011 151 - copia

Highlights on the Second Week of February, 2018. Mining and Exploration News in Mexico

/ Gambusino Prospector / Leave a comment

By Jorge Cirett

During the 6th week of the year (February 5th to February 11th, 2018), at least 30 press releases were announced by companies working in Mexico, with three companies reporting their Q4 and/or full year 2017 results. ON MEXICO ISSUES, no relevant news. ON EXPLORATION, In Sonora, Silver Viper released drilling results from its Clemente project; Canuc Resources reported good surface sample results from its San Javier project; Centerra confirmed it explored two properties in the State during 2017. In Chihuahua VVC Exploration released drilling results from its Samalayuca copper project. In Coahuila, Discovery Metals intends to drill up to seven of its project in 2018. In Guanajuato, Vangold initiated work on a PEA on its Pinguico property. In Veracruz Almadex disclosed good Cu-Au results from drilling at El Cobre project; Mexican Gold begun its 2018 drilling at Las Minas. ON MINING, Three companies, US Antimony, Maverix Metals and Coeur Mining presented production results for the fourth quarter and/or full year 2017. Auxico Resources disclosed metallurgical results from its properties in Sinaloa. Maverix Metals presented royalty earnings from its Mexican contracts. Torex Gold continues to ramp-up operations after the termination of the illegal blockade it was subject to on its El Limon – Guajes mine in Guerrero.  ON FINANCING, Three companies announced the opening and/or closing of financial rounds: Torex Gold C$61.7 M, Advance Gold $190 K, Colibri Resource CAD$1 M. ON RESOURCES AND DEVELOPMENT, Kootenay Silver released surface sample assays and from its La Cigarra property in Chihuahua, and drilling results by Pan American on its La Negra discovery in Sonora. Avino Silver released drilling results from several target areas on the Avino property in Durango. Hecla Miing reported an updated mineral reserve and resource estimate for its San Sebastian property in Durango. Endeavour Silver reported updated mineral reserve and resource estimates for six of its properties in Mexico. ON DEALS AND CORPORATE ISSUES, Silver Viper signed a LOI with Pan American Silver on the extended land package of the La Virginia property in Sonora. Evrim Resources acquired more ground on the Cuale project in Jalisco by optioning and staking. Coeur Mining announced two board changes, including the appointment of Eduardo Luna. Wolverine Minerals Corp. intends to proceed to a name change to Aloro Mining Corp.

ON MEXICO ISSUES

  • No relevant news

ON EXPLORATION

  • Discovery Metals Corp. announced an exploration budget for 2018 of C$5.2 M to do geological mapping, geochemical sampling, geophysics and first stage drilling of up to seven of its projects. At Puerto Rico in Coahuila, mapping and sampling programs, including rehabilitation of underground workings, are underway. At La Kika, also in Coahuila, 20 holes have been completed by drilling 750 m since late December 2017, focusing in high-grade Ag-Pb-Zn mineralization in mantos and a prominent breccia zone. At Minerva, in Coahuila, mapping and sampling will be followed by drilling in Q2, in a property that exhibits porphyry characteristics, transitional to skarn and CRD mineralization. At Monclova, in Coahuila, the skarn/CRD property will be mapped and sampled prior to drilling in Q2. Further work for 2018 includes mapping and sampling in Q3 of the early stage Jemi, Renata and Santa Rosa projects.
  • Silver Viper Minerals Corp. released results from drilling at its Clemente project in Sonora. Relevant core length results comprise 1.2 m @ 30 g/t Ag, 0.2% Pb+Zn; 0.7 m @ 827 g/t Ag, 0.23 g/t Au, 0.37% Cu, 1.6% Pb, 1.4% Zn; 0.5 m @ 24 g/t Ag, 0.12 g/t Au, 0.7% Pb, 1.5% Zn; 4.0 m @ 15 g/t Ag, 0.3% Pb, 2.6% Zn; 3.2 m @ 16 g/t Ag, 0.2% Pb, 2.2% Zn.
  • Mexican Gold Corp. has begun the 2018 drilling program at its Las Minas project in Veracruz. The 3,000 m program will focus on resource expansion as well as exploration drilling on El Dorado Dike contact, El Dorado Juan Bran, Santa Cruz, Nopaltepec, Cinco Señores and Las Minillas zones.
  • Vangold Mining Corp. has initiated a resource valuation and a preliminary economic assessment (PEA) on its El Pinguico project in Guanajuato. Drilling commenced on mid-January, with three of the 17 drill holes planned completed to date. The holes have intersected the underground stockpile (backfill) with an average recovery of 70% on the entire length and 43% on the broken material filling the old stopes.
  • Canuc Resources Corp. reported surface rock sample results from the Carranza and Lydia zones of its San Javier project in Sonora. At Lydia two lines of samples 40 m apart were collected perpendicular to the trend of the breccias, with one line returning 10 m @ 210 g/t Ag, 5.0 g/t Au and the other returning two separate intervals of 4.0 m @ 244 g/t Ag, 2.27 g/t Au; 99 g/t Ag, 0.36 g/t Au. At Carranza, 4.0 m averaged 100 g/t Ag, anomalous Au, and a second 6 m interval 25 m to the south averaged 162 g/t Ag, 0.83 g/t Au.
  • VVC Exploration Corp. released drilling results from its stratiform copper Samalayuca project in Chihuahua. At la Gloria zone, shallow core length intervals comprise: 7 m @ 0.46% Cu; 12 m @ 0.56% Cu; 10 m @ 0.67% Cu; 5 m @ 0.95% Cu. At Extensión La Gloria zone: 27 m @ 0.51% Cu; 51 m @ 0.36% Cu.
  • Centerra Gold Inc. released an update on its global exploration activities, which includes two Mexican plays. Both properties are explored for orogenic gold mineralization in Sonora: La Glor, explored with Riverside Resources Inc. and La Navidad project, explored along with Millrock Resources Inc.
  • Almadex Minerals Ltd. disclosed assays from the last two holes drilled on 2017 in the Raya Tembrillo and Porvenir zones of its El Cobre property in Veracruz. At Villa Rica, core length intervals intercepted 20.07 m @ 0.31 g/t Au, 0.03% Cu; 120.0 m @ 0.08 g/t Au, 0.37% Cu, including 58.0 m @ 0.15 g/t Au, 0.64% Cu (which include 38.0 m @ 0.16 g/t Au, 0.93% Cu). At Porvenir results comprise 64.5 m @ 0.37 g/t Au, 0.21% Cu (including 40.25 m @ 0.50 g/t Au, 0.25% Cu), 26.0 m @ 0.85 g/t Au, 0.27% Cu.

ON MINING

  • United States Antimony Corp. announced the sale of 76.9 K Lb Sb and 212.8 K Lb Sb during December 2017 and January 2018 respectively. Construction of the pilot cyanide leach circuit at the Puerto Blanco mill for the leaching of the Los Juarez gold and silver tailings continues making progress. Plans are to ramp up production to the mill’s 100 tpd capacity, and then increase production to 400 tpd.
  • Auxico Resources Canada Inc. announced results from innovative metallurgical testing conducted on its Aguamas and Campanillas projects in Sinaloa. The tests conducted on gravity concentrates showed recoveries of over 98% Au and 87% Ag within the same leach. These tests have been conducted over the last year using a mix of acids composed of sulfuric acid and thioria. The extraction (less than one hour) is accelerated by the use of ultrasound technology and the process uses no external heat or pressure.
  • Maverix Metals Inc. announced fourth quarter 2017 and full year production, including figures from La Colorada mine in Zacatecas. On La Colorada, Pan American Silver Corp. reported gold production of 1,258 ounces in Q4 2017 and 4,287 ounces for the full year 2017 at the La Colorada mine. Maverix has the right to purchase 100% of the payable gold production from La Colorada at the lesser of US$650/oz and the prevailing market price.
  • Torex Gold Resources Inc. informed that the processing plant continues to process 10 – 13 K tonnes per day (tpd) at its El Limon –Guajes mine in Guerrero. Recoveries have been approximately 85%, and grades close to 3 grams per tonne, with ore being processed from all three open pits, El Limon, Guajes, and El Limon Sur. At the January 30th meeting to set a date for the union selection vote, the Labour Board agreed on a meeting on February 13th, to set the date for the union selection vote. According to the company, the operations continue to ramp up with excellent support from local communities, unionized employees, staff employees, and contractors.
  • Coeur Mining Inc. reported fourth quarter and full year 2017 results, including figures from its Mexican operations. For the full year 2017, at Palmarejo in Chihuahua, 1.5 M tons were milled @ 169 g/t Ag, 2.89 g/t Au, recovering 86.0% Ag, 90.0% Au to produce 7.24 M Oz Ag, 121,569 Oz Au. The exploration expense at Palmarejo was $11.9 M in 2017, following the discovery of several new veins. Mining is now at a steady rate of approximately 4,500 tons per day.

ON FINANCING

  • Torex Gold Resources Inc. closed its previously announced bought deal financing for gross proceeds of C$61.7 M. “The net proceeds of the Offering will be used to fund and provide liquidity for its working capital obligations during the re-start and ramp-up of the ELG Mine Complex, as required….”. Cash reserves, prior to the close of the Offering, were US$64 M including US$14 M set aside for reclamation obligations (El Limon-Guajes, Guerrero).
  • Advance Gold Corp. closed its private placement financing for gross proceeds of $190 K (Tabasqueña, Zacatecas).
  • Colibri Resource Corp. is to proceed with a non-brokered private placement intending to raise up to CAD$1 M in gross proceeds. The funds are to be used on the drilling of it’s El Pilar project in Sonora.

ON RESOURCES AND DEVELOPMENT

  • Kootenay Silver Inc. released the results of the final 10 holes from the 2017 infill drilling campaign by Pan American Silver Corp. at the La Negra zone on the Promontorio project in Sonora. Drill highlights comprise: 50.65 m @ 136 g/t Ag, including 1.05 m @ 1,625 g/t Ag; 49.15 m @ 247 g/t Ag, including 14.55 m @ 515 g/t Ag; 59.20 m @ 237 g/t Ag, including 5.15 m @ 1,161 g/t Ag; 56.05 m @ 93 g/t Ag, including 10.30 m @ 309 g/t Ag; 11.05 m @ 106 g/t Ag; 95.85 m @ 79 g/t Ag, including 7.20 m @ 434 g/t Ag. The 2018 drill program is anticipated to developing drill targets outside of the La Negra discovery.
  • Avino Silver & Gold Mines Ltd. announced results from 19 holes on the Chirumbo, Guadalupe and San Juventino areas of the main Avino mine in the Avino property in Durango. The Chirumbo area is at the East of the Avino vein, with the holes intercepting several structures with results like 7.05 m @ 1.47 g/t Au, 27 g/t Ag; 8.85 m @ 0.80 g/t Au, 18 g/t Ag, 0.24% Cu; 5.50 m @ 5.18 g/t Au, 7 g/t Ag, 0.12% Cu; 21.3 m @ 0.22 g/t Au, 31 g/t Ag, 0.33% Cu; 5.80 m @ 4.75 g/t Au, 55 g/t Ag, 0.84% Cu; 18.45 m @ 82 g/t Ag; 39.35 m @ 0.24 g/t Au, 33 g/t Ag, 0.50% Cu; 38.95 m @ 15 g/t Ag, 0.31% Cu; 29.50 m @ 0.22 g/t Au, 37 g/t Ag, 0.72% Cu. Seven more holes at the Guadalupe vein, west of the Gonzalo vein, returned 3.55 m @ 2.29 g/t Au, 18 g/t Ag; 9.20 m @ 1.28 g/t Au, 89 g/t Ag, 0.88% Cu. At the intersection of the Avino-San Juventino and the Footwall breccia intersect, five holes were drilled returning 10.05 m @ 0.22 g/t Au, 88 g/t Ag; 17.65 m @ 0.16 g/t Au, 58 g/t Ag, 0.26% Cu; 12.40 m @ 0.17 g/t Au, 65 g/t Ag, 0.31% Cu; 21.05 m @ 19 g/t Ag, 0.21% Cu; 13.05 m @ 0.18 g/t Au, 53 g/t Ag; 16.00 m @ 0.89 g/t Au, 37 g/t Ag, 0.12% Cu; 7.65 m @ 0.16 g/t Au, 36 g/t Ag, 0.29% Cu; 23.75 m @ 0.070 g/t Au, 12 g/t Ag, 0.2% Cu.
  • Kootenay Silver Inc. released surface sample results from a new area with multi-gram gold and silver mineralization at its La Cigarra project in Chihuahua. “Gold mineralization has been traced by prospecting, mapping and sampling along mineralized structures within a broad area measuring 500 by 1000 meters. The gold trend is open on strike in both directions.” Highlighted grab and panel sample results comprise: 10.85 g/t Au, 179 g/t Ag, 7.8% Pb, 1.3% Zn; 4.59 g/t Au, 159 g/t Ag, 4.6% Pb, 0.3% Zn; 4.24 g/t Au, 81 g/t Ag, 4.3% Pb, 2.7% Zn; 12.35 g/t Au, 80 g/t Ag, 5.4% Pb, 0.7% Zn; 7.39 g/t Au, 64 g/t Ag, 5.0% Pb, 0.5% Zn; 5.41 g/t Au, 89 g/t Ag, 7.1% Pb, 0.2% Zn; 4.7 g/t Au, 33 g/t Ag, 3.1% Pb, 0.5% Zn; 4.63 g/t Au, 89 g/t Ag, 5.8% Pb, 0.5% Zn; 3.66 g/t Au, 28 g/t Ag, 3.2% Pb, 0.4% Zn.
  • Hecla Mining Co. reported updated mineral reserve and resources, including figures for its San Sebastian property in Durango. Proven and probable reserves in this property comprise 398 K tons @ 432 g/t Ag, 3.11 g/t Au containing 5.52 M Oz Ag, 43 K Oz Au. Measured and indicated resources stand at 1.5 M tons @ 175 g/t Ag, 2.25 g/t Au, 2.9% Pb, 3.8% Zn, 1.7% Cu, containing 8.8 M Oz Ag, 103 K Oz Au, 15,520 tons Pb, 20,350 tons Zn, 9,020 tons Cu. Inferred resources hold 2.9 M tonnes @ 166 g/t Ag, 0.96 g/t Au, 1.8% Pb, 2.5% Zn, 1.5% Cu containing 15.98 M Oz Ag,95 K Oz Au, 23,660 tones Pb, 23,770 tons Zn, 19,520 tons Cu.
  • Endeavour Silver Corp. reported updated mineral resources estimates for its operations in Mexico. Proven and probable mineral reserves on its Guanacevi (Durango), Bolañitos (Guanajuato), El Cubo (Guanajuato) and Terronera (Jalisco) properties amount to 5.27 M tonnes @ 198 g/t Ag, 1.86 g/t Ag; measured and indicated resources in these units and El Compas (Zacatecas), Guadalupe y Calvo (Chihuahua) and Parral (Chihuahua) amount to 5.12 M tonnes @ 192 g/t Ag, 1.90 g/t Au, while indicated resources for all units comprise 6.63 M tonnes @ 227 g/t Ag, 1.23 g/t Au. Indicated mineral resources with base metals on Guanacevi and Parral amount to 1.99 M tonnes @ 78 g/t Ag, 0.26 g/t Au, 0.78% Pb, 1.32% Zn, and inferred resources comprise 1.79 M tonnes @ 82 g/t Ag, 0.68 g/t Au, 2.23% Pb, 2.35% Zn. Reserves and measured and indicated resources add to 70.1 M Oz Ag, 362,900 Oz Au, while inferred resources hold 53.1 M Oz Ag, 300,800 Oz Au

ON DEALS AND CORPORATE ISSUES

  • Silver Viper Minerals Corp. signed a non-binding letter of intent (LOI) with Pan American Silver Corp. to acquire the La Virgina project in Sonora. The project consists of three concessions totaling 35,598 hectares near the border with Chihuahua. The LOI, combined with a LOI signed in December 2017 with the claim owners will restore all the original land holdings into a single exploration property. Silver Viper can acquire 100% ownership in return for a 2% net smelter return royalty over the entirety of Silver Viper’s consolidated La Virginia project. Past drilling includes 52,635.45 m in 188 holes, besides mapping and geochemistry of the property. Mineralization is characterized by low sulfidation epithermal gold-silver bearing quartz stockworks, veins and hydrothermal breccias hosted in andesites and felsic dykes.
  • Evrim Resources Corp. announced the acquisition of 50 square Km of prospective land adjacent to its Cuale prospect in Jalisco. The area immediately to the west and north of the claim group was staked, expanding the total project area to 147 Km. The high temperature footprint supported by Terraspec clay mineral identification has been extended to an area of 2.3 by 2.2 Km.
  • Coeur Mining Inc. announced the appointment of Eduardo Luna and Jessica L. McDonald to the board of directors. “Mr. Luna has spent over forty years in the precious metals mining industry and has held prior senior executive and board positions at several companies including Industrial Peñoles, Goldcorp Inc., Luismin SA de CV, Wheaton River Minerals Ltd., Alamos Gold Inc., and Primero Mining Corp. …”.” Ms. McDonald has extensive leadership experience in both the public and private sectors….” (Palmarejo, Chihuahua).
  • Wolverine Minerals Corp. intends to proceed to a name change to Aloro Mining Corp. (Los Venados, Sonora).
  • Primero Mining Corp. is to hold a special meeting of its shareholders and a meeting of holders to consider the proposed plan whereby First Majestic Silver Corp. will acquire all of the outstanding shares of Primero (San Dimas, Durango).

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

025

Highlights on the Second Week of January, 2018. Mining and Exploration News in Mexico

/ Gambusino Prospector / Leave a comment

By Jorge Cirett

Leisure is the mother of all vices, according to an old Mexican proverb, and having ample spare time during the worst part of the down cycle in the mining industry during 2015 led to creation of this weekly newsletter. First by fueling the creation of the Gambusino Prospector site to publish exploration and mining news, and then noticing that in mid-late 2015 there were news releases worth compiling and spreading, like the private raising of noticeable amounts of cash, and then by compiling the news releases by areas of interest. It was a matter of trial and error until a workable format was born. And remember, there was time available, as the downturn was not throwing much work in our way. The bottom of the downturn was felt in early 2016, with raising spirits in March after PDAC, spirits that continued high through May and Midyear. Things were looking brighter through the end of 2016, but it would take until 2017 for work to noticeably increase in Mexico.  The past year has brought relief to drillers and laboratories, as well as some work for geoscientists and other professionals of the exploration area, but full work is still to come. The expectations for this year are high, even if a swing to a full boom is not expected, but a clear optimistic mood can be perceived in the exploration industry. Having said that, compiling and publishing the news releases takes a two or three hours every week day, and compiling, writing and publishing this newsletter takes anything from four hours (a few times in the year) to up to 12 hours in the more extreme cases…… every week of the year. Believe me, we have learnt to dread the times of the year when the quarterly reports are released. Writing the highlights every week is both a pleasure and hard work that satisfies and exhausts. For the last two years Miguel Heredia was taking care of finding and publishing the press releases from companies working in Mexico and I was doing the compression of the information in a few pages. We now have the help of Laura Ramirez in the research and publishing phase, and starting next week Miguel Heredia and I are to start sharing the task of producing the newsletter in alternate weeks.

During the 2nd week of the year (January 8th to January 14th, 2018), things come back to normal with at least 30 press releases being announced by companies working in Mexico. ON MEXICO ISSUES, the illegal blockade at El Limon-Guajes mine in Guerrero continues. A government sanctioned process to set a date to clear the issue will be held at the end of the month (the end of the month!). ON EXPLORATION, in Sonora, Riverside is awaiting drill results from its Glor and Clemente projects and announced its intention to drill during 2018 its Cecilia project; Canuc informed the delineation of several breccia bodies at its San Javier project; San Marco released high-grade copper results from a new zone at its Chunibas project. In Chihuahua Golden Goliath is in the process to select drill targets at its San Timoteo project. In Coahuila, Silver Bull announced high-grade channel sample results from underground workings at its Sierra Mojada project. In Durango, Riverside announced its intention to drill the El Capitan project during 2018. In Guanajuato, Vangold is to measure the underground stockpile (backfill) at its Pinguico mine. In Estado de Mexico Impact Silver updated on exploration on the Zacualpan district. In Hidalgo, Prospero released interesting results on the first drill campaign at the El Petate project. ON MINING, Seven companies: Torex Gold, Coeur Mining, Hecla Mining, Endeavour Silver, Capstone Mining, Alio Gold and Alamos presented preliminary Q4 and annual production results for 2017. Santacruz Silver announced the commencement of construction work to expand the mill capacity at Veta Grande, Zacatecas. ON FINANCING, Avino Silver is now formally on the TSX.  ON RESOURCES AND DEVELOPMENT, Southern Silver updated its resource estimate on Cerro Las Minitas in Durango to over 50 M Oz Ag, 400 M Lb Pb, 1,600 M Lb Zn. Leagold released the high-grade results of the last 15 holes of its 2017 infill and expansion drill program at the Bermejal underground deposit in Guerrero. First Majestic drilled over 800 holes and 156,000 m on its six operating mines and one prospect during 2017. For 2018 its plan is to drill 183,000 m on the same properties and prospect. Minera Alamos has completed the geotechnical reports on the La Fortuna project in Durango, to submit for approval to SEMARNAT. Kootenay Silver is to focus work in 2018 in the expansion of resources and increasing grade on its La Cigarra project in Chihuahua. Mexican Gold plans to focus exploration work in expanding the resource and finding more orebodies at its Las Minas property in Veracruz. Starcore International is to prepare a PEA on the La Fe property in Sinaloa. ON DEALS AND CORPORATE ISSUES, Torex Gold informed two of the largest communities near its El Limon-Guajes mine in Guerrero, Nuevo Balsas and Salvador Trujano, have publicly supported the company and have asked the state government to intervene to lift the illegal blockade. First Majestic has entered into an agreement to acquire Primero Mining in a deal valued in $320 M.

ON MEXICO ISSUES

  • The illegal blockade at El Limon-Guajes mine in Guerrero continues. Torex Gold informed that two communities, Nuevo Balsas and Valerio Trujano have publicly supported the company and have asked the state government to intervene to lift the illegal blockade. The company is using an alternate route to enter and inspect the facilities while a government sanctioned process for selecting the workers union by vote is underway with a meeting scheduled for January 30, 2018, at which time the parties are expected to agree to a timeline for a vote (vote that the blockading union is expected to try to delay).

ON EXPLORATION

  • Impact Silver Corp. updated on exploration work at the Santa Teresa target, located on the Royal mines of Zacualpan district in Estado de Mexico. Numerous north-south and northeast striking veins transect the Santa Teresa area, with 197 assays greater than 1 g/t Au and up to 114.5 g/t Au. Half of the veins have extremely low sulfide content. The presence of a feldspar porphyry is considered to enhance the prospectivity of the area.
  • Riverside Resources Corp. informed on its exploration plans for 2018, which include the reception of drill results from the Glor and Clemente projects in Sonora, the drilling of the El Capitan project in Durango and Cecilia in Sonora. New partnerships will be explored to advance the Tajitos, (Sonora), La Silla (Sinaloa), Thor (Sonora) and Ariel (Sonora) projects.
  • Vangold Mining Corp. is to star underground drilling at its Pinguico property in Guanajuato on January 15, 2018. The drilling is to focus on grade definition of the underground stockpile (backfill) which is thought to amount 500 K tonnes, to define grade and metallurgical properties. The phase 2 program is to target the Pinguico vein to depth and on strike.
  • Canuc Resources Corp. announced that several breccia targets have been exposed and sampled at its San Javier project in Sonora. Recent mapping has shown that the Carranza breccia could extend over an area roughly 400 m by 100 m. Select zones of this breccia have previously assayed 238 g/t Ag, 0.7 g/t Au over 11 m and 133 g/t Ag, 1.1 g/t Au over 6.5 m. Another breccia has been mapped on the Jazmin workings, with local high grade silver-gold results. Over 400 samples have been sent to the lab, assays are pending.
  • San Marco Resources Inc. released assay results from the newly discovered Cu-Ag mineralization on its Chunibas project in Sonora. The rock chip sampling followed the recognition of a geochemical anomaly in a soil survey, resulting in the discovery of isolated outcrops on otherwise covered terrain of presumably intermediate volcanic rocks strongly altered by an assemblage of epidote>chlorite>quartz>calcite>specularite. Results of 16 samples include 0.1%, 5.9%, 0.87%, 0.76%, 1.38%, 0.97% 1.8%, 0.41%, 3.72%, 0.25% Cu; 1, 51, 6, 8, 19, 4, 17, 4, 66, 4 g/t Ag.
  • Silver Bull Resources Inc. informed on high-grade results from channel samples in newly opened and reconditioned historic workings at its Sierra Mojada project in Coahuila. The new zone comprises 350 m of old working, where 39 channel samples up to 2 m in length were collected, with 21 samples returning over 10% Zn and a peak value of 30.7% Zn; 21 samples over 100 g/t Ag and a peak value of 606 g/t Ag; nine samples over 5% Pb and a peak value of 17.6% Pb. “Our underground geological mapping shows a number of high angle structures up to 2 meters wide containing sulphide mineralization grading up to 1,300 grams per ton silver, 42% zinc, 18% lead, and 13% copper that appear to feed into the overlying oxide zone.”
  • Golden Goliath Resources Ltd. is to complete early in 2018 the drill targeting that was commenced on 2017 at its San Timoteo property in Chihuahua. Past work included a review of past data, including geology, geochemistry, structural geology, geophysics and drilling. Final drafting and final drill target selection remain to be completed. The company anticipates receiving a US$100 K option payment in 2018, and a final payment of US$2.8 M in November 2018. This would provide more than enough funding required for drilling without the need for any further dilution that a private placement would create.
  • Prospero Silver Corp. released drill results from its EL Petate prospect in Hidalgo. Highlights include 24.9 m @ 0.76 g/t Au, 22 g/t Ag; 12.6 m @ 0.51 g/t Au; 16.0 m @ 0.75 g/t Au, 2 g/t Ag; 3.9 m @ 1.18 g/t Au, 4 g/t Ag; 14.7 m @ 0.19 g/t Au, 2 g/t Ag; 1.1 m @ 10 g/t Ag, 1.5% Zn; 10.0 m @ 0.49 g/t Au, 24 g/t Ag; 3.2 m @ 1.96 g/t Au, 34 g/t Ag, 0.1% Zn; 19.3 m @ 0.32 g/t Au, 1 g/t Ag; 12.8 m @ 0.28 g/t Au, 6 g/t Ag. These holes were drilled on the El Tajo and Apartadero SE targets. Prospero is now planning to drill the Pachuca SE prospect, with funding being provided by partner Fortuna Silver.

ON MINING

  • Torex Gold Resources Inc. informed that 241 K Oz Au were poured during 2017 at its El Limon-Guajes mine in Guerrero (The production is for the first 10 months of the year, before the illegal blockade by a union trying to grab a contract that continues to date).
  • Coeur Mining Corp. announced fourth quarter and annual production, including figures from its Mexican operations. At Palmarejo, in Chihuahua, during the fourth quarter 389.5 K tonnes were milled @ 215 g/t Ag, 3.1 g/t Au, with a recovery rate of 87% Ag, 92% Au, to produce 2.35 M Oz Ag, 37,537 Oz Au. During the year 1.5 M tonnes were milled @ 175 g/t Ag, 2.8 g/t Au.
  • Hecla Mining Co. released preliminary silver and gold production results for the fourth quarter and full year 2018, including figures from its operations in Mexico. At San Sebastian in Durango, during the fourth quarter 759.1 K Oz Ag, 5,955 Oz Au were produced, while 3.26 M Oz Ag, 25,177 Oz Au were produced during 2017. Cash and cash equivalents stood at $219 M at the end of the year.
  • Endeavour Silver Corp. produced 4.9 M Oz Ag, 53,007 Oz Au on its three operating mines in Mexico during 2017. During the fourth quarter 1.39 M Oz Ag, 14,577 Oz Au were produced from its Guanaceví mine in Durango, and the Bolañitos and El Cubo mines in Guanajuato. At El Compas in Zacatecas, initial production is targeted on March 2018, At Terronera in Jalisco permits have been received to build the mine and the plant, while receipt of the dumps and tailings permit is awaited.endeavour_Tables January 20181
  • Santacruz Silver Mining Ltd. reports that abiding by the terms of the LOI signed with Carrizal Mining S.A. de C.V., Carrizal has commenced construction works to expand the Veta Grande mill to 750 tonnes per day (tpd). In addition Santacruz has received permit for a surface drill program at the Veta Grande project which includes 6,000 m in 15 drill holes on the first phase, funded by Carrizal.Capstone Mining Corp. released Q4 and full year 2017 production results, including figures from its Mexican operations. At Cozamin in Zacatecas, 219.9 K tonnes were mined in the fourth quarter, 223.5 K tonnes were milled (2,430 tpd) @ 1.98% Cu, 0.71% Zn, 0.06% Pb, 46 g/t Ag, recovering 96.2% Cu, 64.2% Zn, 0.9% Pb, 79.7% Ag, to produce 4,254 tonnes Cu, 1,015 tonnes Zn, 3 tonnes Pb, 263.3 K Oz Ag. During the year, 912 K tonnes were mined and milled (2,499 tpd) @ 1.91% Cu, 0.71% Zn, 0.07% Pb, 43 g/t Ag, with recoveries of 96.1% Cu, 65.5% Zn, 8.0% Pb, 78.7% Ag, to produce 16,732 tonnes Cu, 4,232 tonnes Zn, 50 tonnes Pb, 1.0 M Oz Ag.
  • Alio Gold Inc. informed on preliminary production results from its San Francisco mine in Sonora for the fourth quarter and full year 2017. During the fourth quarter 1.72 M tonnes were processed @ 0.46 g/t Au, 6.23 M tonnes of waste were moved for a total of 7.99 M tonnes mined, to produce 16,070 Oz Au and 7,873 Oz Ag.
  • Alamos Gold Inc. reported fourth quarter and annual 2017 production, including figures from its operations in Mexico. During the fourth quarter Mulatos and El Chanate produced 42,700 and 12,100 Oz Au respectively, and 160,000 and 60,400 Oz Au on the whole year. The budget for development of La Yaqui Grande and Cerro Pelon is $13 M, focusing on engineering, permitting and early stage construction. During 2018 open pit grades mined and stacked on the heap leach pad are expected to range between 0.75 and 0.95 g/t Au. “A total of $13 million and 41,500 m has been budgeted at Mulatos for exploration in 2018 with the main areas of focus being El Carricito, La Yaqui Norte – Halcon, El Refugio, San Carlos and the near mine area”. At El Chanate mining activities are expected to cease mid-2018. Total crushed and run of mine ore is expected to average 9,700 tpd @ 0.69 g/t Au.

 

  • ON FINANCING
  • Avino Silver & Gold Mines Ltd. has received final approval from the Toronto Stock Exchange (TSX) to list its common shares and warrants on January 8th, 2018. Concurrently with the TSX listing, the Shares and Warrants will be delisted from the TSX Venture Exchange (TSX-V) (Avino, Durango).

 

  • ON RESOURCES AND DEVELOPMENT
  • Southern Silver Exploration Corp. updated the mineral resource estimate at its Cerro Las Minitas JV project in Durango (SSV 40%, Electrum Global Holdings LP 60%). The resource was calculated on four deposits: Blind zone, El Sol, Las Victorias and Skarn Front, with 10.1 M tonnes @ 102 g/t Ag, 0.10 g/t Au, 1.4% Pb, 3.6% Zn, 0.15% Cu as indicated resources, holding 33.4 M Oz Ag, 34 K Oz Au, 319 M Lb Pb, 813 M Lb Zn and 8.7 M tonnes @ 74 g/t Ag, 0.04 g/t Au, 0.7% Pb, 4.5% Zn as inferred resources containing 20.7 M Oz Ag, 12 k Oz Au, 131 M Lb Pb, 870 M Lb Zn.
  • Leagold Mining Corp. reported results for the final 15 drill holes at the Bermejal Underground project at the Los Filos mine in Guerrero. These infill and step-out holes intersected high grade intervals like (true width): 4.16 m @ 9.2 g/t Au; 3.05 m @ 8.8 g/t Au; 1.77 m @ 10.1 g/t Au; 1.77 m @ 61.3 g/t Au; 7.43 m @ 12.4 g/t Au; 5.12 m @ 8.1 g/t Au; 3.89 m @ 7.0 g/t Au; 8.08 m @ 5.9 g/t Au; 13.59 m @ 4.75 g/t Au; 6.89 m @ 12.3 g/t Au; 14.08 m @ 20.2 g/t Au; 7.34 m @ 35.6 g/t Au; 10.49 m @ 8.79 g/t Au; 14.33 m @ 8.0 g/t Au; 23.57 m @ 6.1 g/t Au. A total of 111 holes comprising 56,280 m were drilled in this program, from April to December. To date the Bermejal Underground deposit contains 2.1 M Oz Au contained on 10.8 M tonnes @ 6.0 g/t Au. Los Filos currently operates two open pits, Los Filos and Bermejal, and the Los Filos underground mine.
  • First Majestic Silver Corp. disclosed a year-end review of its 2017 exploration program, which includes over 156,500 m of diamond drilling on 807 holes across its six operating mines and the Plomosas project. Highlights include a new discovery at Ermitaño West (in Sonora) with drill TW intersects of 37 m @ 3.0 g/t Au, 50 g/t Ag; 12.9 m @ 4.7 g7t Au, 277 g/t Ag; identification of the Main Vein extension to the west at Santa Elena in Sonora; discovery of the La Fe replacement orebody at La Encantada in Coahuila; discovery of the Cerro de Santiago vein at La Parrilla, in Durango; the extension of the Santa Teresa vein to the south at Del Toro mine in Zacatecas; the continuation of the Hedionda vein in the San Martin mine in Jalisco; the Nazareno northwest extension and the Nazareno de Ancas finding at La Guitarra in Estado de Mexico; the extension of the Plomosas vein and finding a new stockwork system at Plomosas in Sinaloa. For 2018, a 183,000 m drilling program is envisaged across the six operating mines and the Plomosas project.
  • Minera Alamos Inc. has completed the geotechnical studies for the approval of its mine development permits for the La Fortuna gold project in Durango. The study that includes the design of the containment facilities comprise the final data package to be submitted to the environmental authorities (SEMARNAT).
  • Kootenay Silver Inc. informed on 2017 activities at La Cigarra in Chihuahua. The drilling of 37 core holes resulted on significant discoveries In the RAM and Las Venadas zones. Other activities include the re-logging of the entire La Cigarra deposit, mapping and sampling of seven other prospective zones. Work in 2018 is to focus in increasing the current resource and grade at La Cigarra. At La Negra, in Sonora, partner Pan American Silver announced the results of 26 holes from an infill program, including 7.5 m @ 529 g/t Ag within 40.8 m @ 194 g/t Ag.
  • Mexican Gold Corp. informed on work completed during 2017 at its Las Minas property in Veracruz, which includes the completion of an initial 43-100 resources estimate for two of eight known mineralized zones, the completion of 5,873 m of drilling at El Dorado/Juan Bran and Cinco Señores zones, the extension of several zones, the identification of a parallel mineralized zone at Cinco Señores, the completion of geophysical surveys and the purchase agreements on several claims. For 2018 the focus is to expand the initial resource on El Dorado/Juan Bran and the Santa Cruz zone; exploration drilling of the Cinco Señores and Las Minillas zone; the field exploration at the Santa Cruz, Pueblo Nuevo and Changaro zone.
  • Starcore International Mines Ltd. has engaged Global Kompas to undertake a preliminary economic assessment (PEA) of the Santa Fe project in Sinaloa. The property was previously optioned by another company, completing two explorations programs up to 2014 which concluded with no mineral resource, but that discovered multiple veins and mineral ore shoots.
  • ON DEALS AND CORPORATE ISSUES
  • Torex Gold Resources Inc. informed on the state of affairs on the illegal blockade at its El Limon-Guajes mine in Guerrero, announcing that two of the larger communities, Nuevo Balsas and Valerio Trujano have publicly supported the company and have asked the state government to intervene to lift the illegal blockade. Access to the mine site has been gained through a road used during construction on the Rio Balsas Ejido land, allowing crews to inspect the site, make maintenance plans and plans to re-start operations if the security of the site can be assured. The government sanctioned process for a workers’ vote to select the union they want to represent them is underway with a meeting scheduled for January 30, 2018, at which time the parties are expected to agree to a timeline for a vote (date that the blockading union is expected to try to delay).
  • First Majestic Silver Corp. has entered into a definitive agreement to acquire all issued and outstanding shares of Primero Mining Corp. by exchanging Primero’s shares for First Majestic shares on the basis of 0.03325 of a First Majestic common share for each Primero common share. Concurrently First Majestic has entered into agreement with Wheaton Precious Metals International Ltd. (WPM) whereby the current silver streaming interest at Primero’s San Dimas Ag-Au mine in Durango will be terminated. First Majestic and WPM are to enter into a new stream arrangement based on 25% of the gold equivalent production at San Dimas, with ongoing payments of $600 per AuEq Oz delivered under the agreement. As part of the transaction WPM will receive 20.9 M common shares of First Majestic, valued at $151 M. The total transaction values is estimated at $320 M.
  • Content like what you have just read can be seen at https://gambusinoprospector.com/ and at LinkedIn’s Mexico Mineral Exploration Group.
  • On the picture below, argillitized porphyritic intrusive with quartz veining and minor sericite alteration still visible, in a prospect of the Durango Altiplano. Photo by Jorge Cirett.

 

  • SD intrusive4 - copia

 

Highlights on the Second Week of August, 2017. Mineral Exploration in Mexico

/ Gambusino Prospector / Leave a comment

During the 32nd week of the year (August 7th to August 13th, 2017), at least 22 press releases were announced by companies working in Mexico, including eight second quarter reports. ON MEXICO ISSUES, two companies reported the receipt of VAT recovery from the government for $1.3 M and $2.4 M respectively. ON EXPLORATION, in Sonora, Oceanus reported results from underground sampling at El Tigre, while Millrock presented an update on properties under its alliance with Centerra. In Zacatecas, Alset presented drilling results from its lithium property, La Salada. In Guanajuato, Golden Minerals informed on drilling by Electrum of its Celaya property.  ON MINING, Golden Minerals, Torex Gold, Premier Gold, Alio Gold, Pan American Silver, Americas Silver, Primero Mining and Argonaut Gold presented production and/or financial results for the second quarter of 2017. US Antimony reported cost reductions on its operations and Telson resources reported the first concentrates shipment from Tahehueto in Durango. ON FINANCING, no relevant news for the first time in the year.  ON RESOURCES AND DEVELOPMENT, Golden Minerals informed on the acquisition of three more claims and the incoming drilling campaign on its Santa Maria project in Chihuahua. ON DEALS AND CORPORATE ISSUES, Santacruz Silver completed the sale of the Gavilanes project in Durango to Marlin Gold. Colibri completed the acquisition of Canadian Gold, along with its properties in Sonora. McEwen Mining reported on the next semi-annual return of capital instalment.

ON MEXICO ISSUES

  • On VAT recovery. The first company to announce a sizeable VAT recovery in years was Alio Gold, which received $1.3 M in cash before the end of the second quarter. Primero Mining received $2.4 M after the end of the second quarter.

ON EXPLORATION

  • Golden Minerals Co. announced that Electrum Global Holdings L.P. received results of drilling on Golden’s Celaya property in Guanajuato. Results from 5,600 m drilled in seven holes (800 m per hole?) show intercepts of epithermal quartz vein mineralization with Au, Ag, Zn grades that warrant further testing.
  • Alset Minerals Corp. reported partial results from phase one drilling at La Salada salar in Zacatecas, the first of 13 salars to be tested. At La Salada, one deep hole (51.35 m) and 40 auger holes (4.5 – 26.0 m in depth, average 14 m) were completed, both near surface brine samples and extensive lake sediment samples were recovered in the 1,800 m by 900 m salar. Results from five of the holes (the rest are pending) average 14.4 m @ 3.6% K, 975 ppm Li (up to,1860 pm) and 535 ppm B. Water samples average 1.3% K, 1.6% SO4, 258 ppm B, 9 ppm Li, 57 ppm Ca, 36 ppm Mg.
  • Oceanus Resources Corp. presented assay results from sampling at old underground exploration tunnels from the unmined Protectora, Aguilas, Fundadora and Caleigh veins on its El Tigre project in Sonora. The rock chip samples are said to be at least 0.5 m in width (no average width disclosed), and collected every 3-5 m along strike in 13 exploration tunnels. Average results include 3 samples on the Caleigh vein @ 19.9 g/t Au, 2,247 g/t Ag; On the Protectora vein: 20 samples @ 0.2 g/t Au, 437 g/t Ag; 18 samples @ 1.3 g/t Au, 290 g/t Ag; 4 samples @ 2.8 g/t Au, 337 g/t Ag; 16 samples @ 2.2 g/t Au, 473 g/t Ag; 5 samples @ 2.8 g/t Au, 680 g/t Ag; 19 samples @ 0.6 g/t Au, 480 g/t Ag. On the Fundadora vein: 5 samples @ 6.1 g/t Au, 307 g/t Ag; 12 samples @ 1.2 g/t Au, 254 g/t Ag.
  • Millrock Resources Inc. presented an update in exploration, including information on its three properties in Sonora. The La Navidad project was optioned on June, and immediately entered into a JV with Centerra Gold Inc. Presently underway are soil sampling, geological mapping, induced polarization and magnetic surveys. Also in June El Picacho project was optioned and made a “designated project” on the alliance between Centerra and Millrock. Soil sampling, geological mapping, induced polarization and mag surveys are currently being performed. Los Chinos and Los Cuarenta projects options were terminated by Centerra.

ON MINING

  • United States Antimony Corp. reported major cost reductions at its Mexican antimony smelter, as a result of metallurgical changes while increasing production rates. Production at Wadley, San Luis Potosi, is growing with more miners. USAC intends to use its Los Juarez explosives license at Soyatal, Queretaro, which will save money and time. Guadalupe is undergoing road work to re-establish the production of high-grade concentrates. The application for the cyanide permit for the Los Juarez project was resubmitted to SEMARNAT (EPA equivalent) at the end of July, after one item change requested by the agency.
  • Telson Resources Inc. announced that the first shipment of lead and zinc concentrates processed at the Atocha mill has been delivered to Mercuria Commodities Trading, S.A. de C.V.. As of August 1, 2017, the Company has processed approximately 1600 tonnes of ore through the Atocha toll mill producing approximately 66.1 dry tonnes of lead concentrate and 94.5 dry tonnes of zinc concentrate which have been delivered to Mercuria.
  • Golden Minerals Co. presented financial results for Q2 2017. Approximately $1.7 M revenue was received from the oxide plant lease to Hecla, and costs of $0.5 M to the services provided under the lease, for a net operating margin of $1.1 M. The company spent $0.5 M in exploration related primarily to work at the Santa Maria (Chihuahua), Rodeo (Durango) and other properties, as well as holding costs. Cash and cash equivalents balance of $2.7 M at the end of the period.
  • Torex Gold Resources Inc. reported financial and operational results. At El Limón Guajes mine in Guerrero 74,487 Oz Au were produced, as ramp-up continues, with design throughput achieved in June. Plant throughput was 1.2 M tonnes, or 13,063 tonnes per day (tpd), while mine production was 8.4 M tonnes, or 92,044 tpd. The gold recovery rate was 86% on a 2.37 g/t Au average grade, at cash cost $709 per Oz Au and AISC $991. Cash balance of $77.2 M including restricted cash of $15.7 M at the end of the period.
  • Premier Gold Mines Ltd. announced its operational and financial results for the second quarter of 2017. At Mercedes in Sonora 177.9 K tones were milled (1,954 tpd) @ 4.03 g/t Au, 36 g/t Ag; with recoveries at 94.9% Au, 43% Ag, to produce 21,893 Oz Au, 89.5 K Oz Ag. By-product cash cost per Oz Au was CAD$550 and by-product AISC per Oz Au of CAD$688. Quarter end cash balance of $156.8 M (US$120.9 M).
  • Alio Gold Inc. reported second quarter 2017 results. Production at the San Francisco gold mine was 22,011 ounces during the period, at AISC $954 per Oz Au. The San Francisco mine revitalization plan was initiated and the definitive feasibility study (DFS) after the positive pre-feasibility study (PFS) was released and a CAD$50.4 M bought deal financing was completed. The pre-stripping campaign envisions moving 22 M tonnes of waste from the Main and La Chicharra pits over the next 20 months. Cash and cash equivalents at the end of the period were $35.9 M.
  • Pan American Silver Corp. announced Q2 2017 results, including figures from its operations in Mexico. At Dolores in Chihuahua the construction of the agglomeration plant was completed and development for underground mining advanced, with initial stope ore mining expected to initiate before the end of 2017. At La Colorada mine in Zacatecas production achieved 1,800 tpd rates during the last month of the quarter. At La Colorada 1.73 M Oz Ag, 0.94 K Oz Au were produced at cash cost $3.38 per Ag Oz. At Dolores 1.04 M Oz Ag, 22.44 K Oz Au were produced at cash cost $0.12 and at Alamo Dorado in Sonora 0.26 M Oz Ag, 0.69 K Oz Au were produced at cash cost $11.18. Cash and short-term investments of $198.2 M at the end of the period.
  • Americas Silver Corp. disclosed consolidated financial and operational results for the second quarter of 2017. The figures of its operations in Mexico were informed in a previous release. San Rafael in Sinaloa remains on budget and on time to start production by the end of Q3, 2017. Cash balance at the end of the period was $12.8 M.
  • Primero Mining Corp. reported operating and financial results for the second quarter, 2017, including figures form its Mexican operations. At San Dimas 11,903 Oz Au, 0.97 Oz Ag were produced at cash cost $1,144 per AuEq Oz, and AISC $1,650 per AuEq Oz, with operations being impacted by bad relations with unionized employees. “…the Company believes that labour disruptions may continue to adversely affect the Company’s ability to profitably operate the San Dimas…” and “Primero highlights the significant liquidity risk imposed by the pending RFC maturity date of November 23, 2017, and notes that it may not be able to fully repay its debt obligations…”. Cash stood at $12.1 M and $10.0 M available under its existing revolving credit facility (RFC) at the end of the period, with a $33.5 in VAT and $22.8 M income taxes receivable outstanding.
  • Argonaut Gold Inc. announced its financial and operating results for the second quarter of 2017. The consolidated production was 29,730 AuEq Oz at cash cost $785 and AISC $906 per AuEq ounce. At El Castillo in Durango 2.0 M tonnes of ore @ 0.39 g/t Au and 2.65 M tonnes of waste were moved (51 K tpd) to produce 16,927 Oz Au at cash cost $893 per ounce. At La Colorada in Sonora 1.22 M tonnes of ore @ 0.64 g/t Au and 4.77 M tonnes of waste were moved (66 K tpd) to produce 12,098 Oz Au and 38.2 K Oz Ag at cash cost $590 per AuEq ounce. At San Agustin (10 km from El Castillo) mining commenced during the quarter, leach pad and pond construction was completed and the crushers installed, with ore beginning to be staked on the pad in late June. Construction was 75% complete by the end of July. Cash and cash equivalents stood at $53.8 M at the end of the quarter.

ON FINANCING

  • No relevant news.

ON RESOURCES AND DEVELOPMENT

  • Golden Minerals Co. entered into an agreement to acquire three additional claims at the Santa Maria project in Chihuahua for $0.7 M over four years, with an initial payment of $50 K and $30 K in six months. The targets in these claims are to be tested in an upcoming 2,000 m drill program in the third quarter of 2017, while the environmental study to obtain the permit to perform the 200 tpd underground mining envisaged on the preliminary economic assessment (PEA) has been completed.

ON DEALS AND CORPORATE ISSUES

  • Santacruz Silver Mining Ltd. entered into a definitive agreement to sell 100% interest in the Gavilanes property in Durango to Marlin Gold Mining Ltd. Santacruz is to settle the outstanding balance on some of the claims by making a $500 k payment and issuing 1.25 M Santacruz shares to the property vendor. Gavilanes is a low sulphidation epithermal deposit in the San Dimas mining district with NI-43-101 compliant 6.1 M AgEq indicated ounces (953 K tonnes @ 200 g/t AgEq), and 28.2 M AgEq inferred ounces (5.4 M tonnes @ 163 g/t AgEq).
  • Santacruz Silver Mining Ltd. settled the outstanding balance owing on certain of the claims included in the Gavilanes project (in Sinaloa) by making a cash payment of US$500 K and 1.25 M Santacruz shares.
  • Colibri Resource Corp. completed the acquisition of Canadian Gold Resources Ltd. Colibri acquired all outstanding shares of Canadian Gold for $4 M, paid by way of issuance of 24.2 M shares to the vendor. Colibri now owns 100% interest in Minera Bestep S.A. de C.V., a private Mexican company that holds 100% (no NSR’s) of the Pilar and the Sun properties near Suaqui, in Sonora.
  • McEwen Mining Inc. reported a revised record date for the next semi-annual return of capital instalment of a ½ cent per share which will be distributed to shareholders of record on August 14, 2017. The distribution will be paid on August 17, 2017.

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 below, vuggy silica fragment within a felsic tuff in Chihuahua. Photo by Jorge Cirett.

Vuggy quartz at Moreno