Weekly Highlights

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

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By Jorge Cirett

During the 10th week of the year (March 5th to March 11th, 2018), at least 24 press releases were announced by companies working in Mexico, and three articles on mining matters in Mexico published by newspapers. ON MEXICO ISSUES, the Fraser Institute released the results of the 2017 survey on Mining Attractiveness by Jurisdiction, with Mexico stagnant at mid table due to low results on taxation regime, labor disruptions and security perception. The Sonora government is supporting the mining industry with the signature of a collaboration agreement with the Economy Bureau. The governors of Chihuahua and Oaxaca attended the PDAC in Toronto for promoting mining investment in their respective states. Other delegations present were from Durango and Zacatecas. ON EXPLORATION, In Sonora Riverside announced a bigger land position at its Cecilia project; Oceanus has mapped the favorable El Tigre Formation rock package for 5 km in strike length at its El Tigre property; Mexus Gold updated on exploration of its 8 Hermanos property; Millrock disclosed interesting low grade drilling results from its Navidad property; Azure has started the second drill campaign at its Sara Alicia Au-Co property. In Chihuahua VVC Minerals received the permit for drilling its Samalayuca property; Radius updated on exploration at its Amalia project. In Guanajuato, Vangold started the phase two of drilling at its Pinguico property. ON MINING, two companies, Americas Silver and Santacruz Silver presented production results for the quarter and/or full year 2017. Magellan Gold announced the restart of its mill in Nayarit.  ON FINANCING, Canuc Resources closed a $1.1 M financing round, Colibri closed the first tranche of a financing round netting $1.08 M. Vangold announced the opening of a financing round for raising up to $2 M. Santacruz Silver obtained a US$2.3 M private loan. Starcore closed a financing round for $125 K with an insider.  ON RESOURCES AND DEVELOPMENT, Levon Resources released an updated mineral resource report for its Cordero project in Chihuahua. Alio Gold provided an exploration update at its Ana Paula project in Guerrero. Leagold updated its mineral resource estimate for its Los Filos mine and the Bermejal Underground deposits in Guerrero. ON DEALS AND CORPORATE ISSUES, Sonoro Metals acted on the LOI to option a group of properties adjacent to its Cerro Caliche property in Sonora. Autlan is to acquire all shares from Metallorum (it already controls an undisclosed percentage), which owns the Lluvia de Oro mine in Sonora.

ON MEXICO ISSUES

  • Mexico stays about the same on the investment attractiveness index published yearly by the Fraser Institute. Mexico fell to the 50 (of 91 jurisdictions surveyed) position from the 44 (of 104) on the 2016 survey, affected mainly by low rankings in security, taxation regime and labor regulations/work disruptions. In 2014 Mexico was on the 24 position of 122 surveyed. Chile ranked 8 and Peru 19 on the 2017 survey. Below is the table for the perception of the taxation regime (which presents the effect of the recently imposed royalties as a hard fact). The security perception ranking, along the other rankings can be seen at the following link: (https://www.fraserinstitute.org/sites/default/files/survey-of-mining-companies-2017.pdf).Taxation Regime Index, Fraser Institute 20171
  • The Sonora government is supporting the development of the mining industry in the state with the signature of a collaboration agreement with the Economy Bureau (Secretaría de Economía). The agreement looks to promote investment, better technical assessments, training and cut red tape. The mining industry represents 17% of the state’s GDP, with the state providing 31% of Mexico’s mining production. Sonora’s Governor Claudia Pavlovich has been pushing a proposal on the Deputies Chamber to install a 100% deduction of exploration expenses on the year these are incurred.
  • The governors of Chihuahua and Oaxaca attended the PDAC in Toronto Canada to promote mining investment on their states. Both Javier Corral (Chihuahua) and Alejandro Murat (Oaxaca) attended the Mexico Mining Day 2018 and had personal interviews with companies doing business in their states or trying to set a foothold there. Other delegations present were from Durango and Zacatecas.

ON EXPLORATION

  • VVC Minerals Corp. received the permit for drilling at its Samalayuca property in Chihuahua. The SEMARNAT permit approved 22 new drilling sites, in addition to 13 already approved. The drilling is to focus on La Gloria Extension area, La Concha pit area, La Zorra zone and the Julianna, Suerte and Trinidad areas. The completed and proposed drilling cover 7 Km of strike length on the property.
  • Vangold Mining Corp. concludes phase 1 drilling, starts phase 2 drilling at El Pinguico property in Guanajuato. Vangold completed five of 15 drill holes targeting the underground stockpiles (backfill) on the El Pinguico vein, with poor recoveries and grades. While a better method of assessing these stockpiles is researched, the company has initiated the phase 2 drilling campaign targeting the lower El Pinguico vein extension below the old workings, 300 m below the surface.
  • Riverside Resources Inc. announced that it has been granted the mineral rights to the Cecilia 1 concession, increasing the ground held on the Cecilia project in Sonora to almost 6,000 hectares. Epithermal Au-Ag mineralization is associated to a rhyolite flow-dome setting.
  • Oceanus Resources Corp. updated on its exploration efforts on El Tigre property in Sonora. The El Tigre Formation is the rock package that host the historic El Tigre mine, which operated from 1903 to 1938, producing 353 K Oz Au and 67.4 M Oz Ag; the favorable El Tigre Formation has been now traced for 5 km.
  • Mexus Gold US. presented an update on exploration of its 8 Hermanos and Scorpio_370 claims in Sonora. Mexus controls 2,800 hectares in an area with sedimentary rocks intruded by granodiorite, dioritic dikes and a diorite porphyry, all covered in turn by Tertiary volcanic tuffs and flows. Three samples from the 370 concession returned 9 g/t Au, 41 g/t Ag; 47 g/t Au, 33 g/t Ag; 10 g/t Au, 8 g/t Ag. Porphyry copper potential is highlighted on a report (no alteration is described).
  • Radius Gold Inc. provided an update on exploration at the Amalia project in Chihuahua. The 10,380 ha project has Au-Ag mineralization defined over 2 km of strike length in high level chalcedonic veins, stockworks and breccias and deeper level structurally controlled higher grade mineralization. “Radius continues to advance the Amalia project and is currently permitting drilling and bulldozer trenching.” Recent channel sampling returned 4.5 m @ 10.3 g/t Au, 202 g/t Ag, extending the total strike length of the high-level epithermal mineralization of the Campamento zone to 500 m.
  • Millrock Resources Inc. reported on first phase core drilling at its La Navidad project in Sonora, funded by earn-in partner Centerra Gold. In total, 2,130 m were drilled in 12 holes, with several anomalous intersections, like: 17.2 m @ 0.75 g/t Au (including 1 m @ 9.05 g/t Au); 15.65 m @ 0.60 g/t Au; 18.30 m @ 0.33 g/t Au; 18.0 m @ 0.12 g/t Au; 6.00 m @ 0.26 g/t Au; 5.90 m @ 0.45 g/t Au; 57.0 m @ 0.29 g/t Au; 16.6 m @ 0.35 g/t Au.
  • Azure Minerals Ltd. announced the start of the second drilling campaign on its Sara Alicia project in Sonora. “The Sara Alicia mineralised zone consists of carbonate rocks intruded by a porphyry. This intrusive event caused strong alteration and mineralising reactions in the limestones to form a skarn body which hosts massive and semi-massive sulphides containing the cobalt and gold mineralisation”. The first phase of this drilling campaign is to comprise 1,000 m in 10-12 holes, targeting along-strike and down-dip extensions. The second phase is planned to complete a 50 x 50 m drill pattern over the mineralized body.

ON MINING

  • Americas Silver Corp. reported 4Q and year-end financial results for 2017, including some figures from its operations in Mexico. The San Rafael mine in Sinaloa declared commercial production on December 19, 2017, and was constructed for $16.3 M, 32% lower than the initial project guidance. For 2018 the company plans to produce 1.6 to 2.0 M Oz Ag and 7.2 to 8.0 M Oz AgEq. Cash balance at the end of December was $9.3 M, with net working capital of $11.8 M.
  • Santacruz Silver Mining Ltd. reported operating results for the fourth quarter and full year 2017. Santacruz produced 865.4 K Oz AgEq during the year, including 139.7 K Oz AgEq during the fourth quarter. At Veta Grande in Zacatecas 102.1 K tonnes were milled @ 100 g/t Ag (127 g/t AgEq) and Ag recovery of 61% to produce 201.3 K Oz Ag, 424 Oz Au, 466 tonnes Pb, 803 tonnes Zn during the year. At Rosario in San Luis Potosi, 78.9 K tonnes were milled @ 52 g/t Ag (205 g/t AgEq) and a recovery of 85% Ag to produce 112.6 K Oz Ag, 1,007 Oz Au, 157 tonnes Pb, 1,489 tonnes Zn during the same period.
  • Magellan Gold Corp. announced it has rehired employees and is restarting its 100% owned SDA mill in Nayarit. Operations are initially to reprocess tailing located at the site, with recovery of precious metals expected to defray holding costs of the mill while new ore sources are acquired. The mill last operated in November 2017 and processed third-party ore on a toll basis.

ON FINANCING

  • Canuc Resources Corp. closed a non-brokered private placement financing with gross proceeds of $1.1 M (San Javier, Sonora).
  • Colibri Resource Corp. has closed an over-subscribed first tranche on its previously announced $1 M financing, raising gross proceeds of $1.077 M. Total gross proceeds to be raised between the two tranches is expected to be $1.2 M (Pilar, Sonora).
  • Vangold Mining Corp. announced a non-brokered private placement financing to raise up to $2 M, and fund the phase 2 drill program targeting the lower El Pinguico vein extension, and general working capital.
  • Santacruz Silver Mining Ltd. has arranged a loan from a private Bolivian mining company, for US$2.3 M. The loan bears interest at 9% per annum, is repayable July 1st, 2018, and is unsecured (Veta Grande, Zacatecas; Rosario, San Luis Potosi).
  • Starcore International Mines Ltd. announced the closing of its non-brokered private placement to an insider, for gross proceeds of $125 K (San Martin, Queretaro).

ON RESOURCES AND DEVELOPMENT

  • Levon Resources Ltd. announced an updated NI-43-101 mineral resource estimate and a 2018 preliminary economic assessment (PEA) for the Cordero project in Chihuahua. The new estimate includes 990 M tonnes of ore @ 12.8 g/t Ag, 0.37% Zn, 0.17% Pb, 0.04 g/t Au as indicated resources and 282.2 M tonnes @ 20.7 g/t Ag, 0.75% Zn, 0.30% Pb, 0.04 g/t Au as inferred resources. The said resource contains 595 M Oz Ag, 1.63 M Oz Au, 12.7 B Lb Zn, 5.6 B Lb Pb in the indicated and inferred categories. The PEA includes an open pit mining rate of 40 K tpd (tonnes per day) to produce mineral concentrate, an annual production of 8 M Oz Ag, 44.8 K tonnes Zn, 31.1 K tonnes Pb, 11,900 Oz Au. Over the 29 year mine life on the PEA, 231 M Oz Ag, 2,863 M Lb Zn, 1,992 M Lb Pb would be produced.” Metallurgy is simple (side by side lead and zinc conventional flotation mills) with 88% overall recoveries after three rounds of bench-scale testing”.
  • Alio Gold Inc. provided an update on exploration of its Ana Paula project in Guerrero. To date 1,300 m of the planned 3,800 m of surface drilling have been completed (two of six diamond drill holes), intersecting breccia mineralization as expected and awaiting assay results. Two new breccia targets were discovered by mapping within 1.5 km of the limit of the proposed pit, showing magmatic and hydrothermal breccia mineralization with traces of pyrite and arsenopyrite.
  • Leagold Mining Corp. has filed a NI-43-101 technical report for the Los Filos mine in Guerrero. For Los Filos and Bermejal Underground deposits, measured and indicated resources amount to 13.53 M Oz Au, while inferred resources stand at 6.28 M Oz Au (Almost 20 million ounces of gold!).  Los Filos Resources1Los Filos Resources1 - copia

ON DEALS AND CORPORATE ISSUES

  • Sonoro Metals Corp. has executed on the letter of intent (LOI) of an option agreement on the Rosario group of properties in Sonora. The Rosario concessions are adjacent to Sonoro’s Cerro Caliche property, covering 403.5 hectares, thereby increasing Sonoro’s land holdings in the area to 1,455 hectares. Sonoro is to acquire 100% interest on the property by paying the vendor (a Tucson resident) US$1.6 M payable in escalating cash installments over 72 months, with the initial installment of US$60 K payable on execution. The vendor is to retain 2% NSR, same that can be bought by Sonoro by US1 M for each one percent.
  • Compañía Minera Autlán SAB de CV. is to acquire all the shares of Metallorum Holding, which owns the Lluvia de Oro mine in Sonora. The company is to invest US$25 M in the next three years to increase its manganese and ferroalloys production capacity.

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, beautiful quartz vein with bladed calcite pseudomorphs at the museum of El Oro mining district in Estado de Mexico.

041 - copia

Highlights on the First Week of May, 2017. Mineral Exploration in Mexico

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During the 18th week of the year (May 1st to May 7th, 2017), at least 29 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, no relevant news this week. ON EXPLORATION, In Sonora Alix released metallurgical tests results from its Elektra lithium property, San Marco is preparing to drill Chunibas, while confirming the presence of a porphyry copper system at project 1068, and Aztec informed that is likely to drill its Cervantes property on the same State. In Zacatecas Canasil disclosed high grade drill results from La Esperanza, Galore commenced a drill program at Dos Santos and Zenith disclosed advance on its lithium properties. ON MINING, Ten companies presented first quarter 2017 financial results: Marlin Gold, Santacruz Silver, Primero Mining, Gold Resource, Torex Gold, Endeavour Silver, McEwen Mining, Alamos Gold, Great Panther and First Majestic. ON FINANCING, Three companies, Evrim Resources, Aztec Minerals and Almaden Minerals presented information on financing rounds for $4.2 M, C$4.02 M and $15 M respectively. ON RESOURCES AND DEVELOPMENT, Consolidated Zinc presented an activities report on its Plomosas property in Chihuahua, and Alamos Gold released information on exploration on the Mulatos district in Sonora, with a hefty budget. ON DEALS AND CORPORATE ISSUES, Fortuna Silver presented an update on its MTCO and disclosed it is soon to comply with the regulatory agencies requested paperwork. Southern Silver entered into an agreement with La Cuesta to buy two properties adjacent to its Cerro Las Minas property in Durango.

ON MEXICO ISSUES

  • No relevant news this week

ON EXPLORATION

  • Alix Resources Corp. announced preliminary metallurgical tests released by its JV partner Lithium Australia ML, from the Agua Fria prospect, part of its Elektra project in Sonora. Preliminary sulphuric acid shaker tests were carried out at room temperature for a period of four hours, with Lithium extraction attaining up to 85%.
  • Zenith Minerals Ltd. is exploring its three lithium properties in Zacatecas, funded by partner Bradda Head Ltd. Surface sampling has been completed, with results pending, on the Zacatecas Li brine properties.
  • San Marco Resources Inc. informed that field work on its 1068 project has confirmed and expanded the size potential of a porphyry copper system. The work that included geological and alteration mapping, stream sediment and rock chip sampling, and petrographic samples increased the phyllic alteration zone to 1,000 x 450 m, with an internal zone of strong phyllic stockwork in the volcanic rock lithocap. The drilling application is in process and surface rights access have been secured over the main targets.
  • Canasil Resources Inc. disclosed assay results for three drill holes at its La Esperanza project in Zacatecas. True width (TW) intercepts include 1,87 m @ 231 g/t Ag, 1.2% Zn, 1.4% Pb; 11.23 m @ 0.74 g/t Au, 219 g/t Ag, 0.9% Zn, 0.4% Pb; 2.07 m @ 261 g/t Ag, 2.1% Zn, 0.9% Pb; 2.75 m @ 2.76 g/t Au, 552 g/t Ag, 1.1% Zn, 0.6% Pb; 1.51 m @ 0.39 g/t Au, 256 g/t Ag, 1.7% Zn, 0.7% Pb. The vein system is open in all directions, and the mineralization intercepted is interpreted as part of the upper part of the system.
  • Aztec Minerals Corp. expects to drill test the California target of its Cervantes property in Sonora, after the rainy season late this summer.
  • San Marco Resources Inc. is preparing to drill its Chunibas project in Sonora. The Chunibas targets are a series of high-grade gold bearing veins hosted in intrusive rocks. There are five main vein zones: Santa Rosa, Argentina, Santa Fe, Guasima, and Western, which comprise a corridor 750 m wide and 1.5 km long. Grades of up to 46 g/t Au have been obtained from the one to two metre-wide structures.
  • Galore Resources Inc. commenced a 3,500 m diamond drill program at its Dos Santos property in Zacatecas. The first drill hole began testing the main fault/vein system prevalent on Galore’s San Jose claim.

ON MINING

  • Marlin Gold Mining Ltd. presented financial results for 2016, which include total assets for C$102.2 M, and total liabilities of C$73.3 M for a total of 28.83 M Equity.
  • Santacruz Silver Mining Ltd. reported financial and operating results for 2016. During the year Santacruz restructured its silver loan agreement with JMET LLC and divested from the San Felipe and El Gachi projects in Sonora, in order to reduce debt obligations. The company processed 42,746 tonnes of ore to produce 200.1 K Oz AgEq, at cash cost $23.97 per AgEq Oz, and AISC $26.15 per AgEq Oz. The company continues with its operations at Veta Grande, Zacatecas, working on the Guadalupana, Garcia and the Choros mines, while the Rosario mill in San Luis Potosi is processing ore from the Cinco Estrellas mine.
  • Primero Mining Corp. reported first quarter 2017 results, including figures from its San Dimas property in Durango. The San Dimas mine was subject to an unionized strike that left only 45 working days on the quarter, but the new work agreement sets better terms for more competitive operations. Total production was 10,118 Oz Au, 0.62 M Oz Ag, at cash cost $827 and AISC of $1,335. The mine expects to produce between 90 K and 100 K Oz AuEq during 2017. At March 31, 2017, the company had $30.6 M in cash and $15 M available under its line of credit.
  • Gold Resource Corp. presented Q1 2017 results. At its El Aguila operations in Oaxaca 101.3 K tonnes were milled at a rate of 1,206 tpd, and an average grade of 2.42 g/t Au, 143 g/t Ag, 0.28% Cu, 1.16 % Pb, 3.07% Zn. Recoveries were 86% Au; 92% Ag, 78% Cu, 76% Pb, 85% Zn, to achieve the production of 6,747 Oz Au, 427.9 K Oz Ag, 220 tonnes Cu, 927 tonnes Pb, 2,149 tonnes Zn. Total cash cost was $980 per Au-AgEq Oz before by-product credits, $263 Au-AgEq Oz after by-product credits and all-in sustaining cost of $920 per “precious metal gold equivalent ounce sold” (??).
  • Torex Gold Resources Inc. disclosed production and financial results for Q1 2017. 941 K tonnes were processed @ 2.49 g/t Au, and a recovery rate of 85% to produce 70,887 Oz Au at $671 cash cost and AISC $923 per Au Oz. During the period a maiden underground resource was announced, containing 324 K inferred and 89 K indicated Au Oz. The cash balance at the end of March was $108.5 M (of which $14.6 M is restricted).
  • Endeavour Silver released Q1 2017 financial results, with the production of 1.08 M Oz Ag, 11,724 Oz Au at cash cost $7.81 per Ag Oz and all-in sustaining cost of $18.24 per Ag Oz net of gold credits. During the period high grade results were disclosed for Terronera, in Jalisco, the decision to develop the El Cubo mine in Guanajuato was taken and announced a robust PFS on the Terronera project. Cash and cash equivalents stand at $70.5 M at the end of the period (Guanacevi, Durango; El Cubo and Bolañitos, Guanajuato).
  • McEwen Mining Inc. reported financial results for Q1 2017, including figures from its El Gallo property in Sinaloa, where 9,730 Oz Au, 722.8 K Oz Ag were produced at cash cost $564 per AuEq Oz and AISC $668 per AuEq Oz co-product. At the end of the period cash and cash equivalents stood at $55.1 M.
  • Alamos Gold Inc. presented its financial and operational results for the first quarter of 2017, including figures from its Mexican operations. At Mulatos and El Chanate in Sonora 40 K and 15.8 K Oz Au were produced at cash cost $920 and $1,144 per Au Oz, and all-in sustaining cost $920, $1,187 per Au Oz respectively. At Mulatos 1.8 M tonnes of ore were mined in the open pit, 1.89 M tonnes of waste were moved (Waste to ore ratio 1.04), 1.69 M tonnes were crushed and stacked @ 0.86 g/t Au, while 35.7 K tonnes @ 8.88 g/t Au were mined from underground operations and milled. The recovery rate stood at 70%. At El Chanate 906 K tonnes of ore were mined, 7.56 M tonnes of waste moved (Waste to ore ratio 7.34), 747.9 K tonnes @ 0.53 g/t Au were crushed and staked on the heaps. The waste to ore ratio is higher than usual due to a scheduled pit pushback that will extend into the second quarter. Cash and cash equivalents stand at $479.2 M at the end of the period.
  • Great Panther Silver Ltd. reported first quarter 2017 financial results. From its operations at Topia, Durango, and San Ignacio and the Guanajuato mine complex in Guanajuato, 82.6 K tonnes were milled, producing 366.4 K Oz Ag, 5,178 Oz Au at cash cost $10.99 per AgEq Oz, and AISC $19.10 per AgEq Oz. At Topia, the company is struggling to comply with one of the SEMERANT (environmental agency) requirements, with the continuity of operations at risk. Cash and short-term deposits stand at $53.2 M at the end of the period.
  • First Majestic Silver Corp. announced Q1 2017 financial results. During the period 822.3 K tonnes were milled, to produce 2.7 M Oz Ag, or 4.27 M Oz AgEq at cash cost $6.68 and all-in sustaining cost $12.21. At the end of such period cash and cash equivalents stood at $127.6 M.First Majestic Q1 2017 operating cost1

ON FINANCING

  • Evrim Resources Corp. has further increased its private placement to raise gross proceeds of $4.2 M (Ermitaño, Sonora, Cerro Cascaron, Chihuahua).
  • Aztec Minerals Corp. completed its IPO, for total gross proceeds of C$4.02 M (Cervantes, Sonora).
  • Almaden Minerals Ltd. entered into an agreement to raise, in a private placement basis, up to $15 M (Ixtaca, Puebla).

ON RESOURCES AND DEVELOPMENT

  • Consolidated Zinc Ltd. presented a quarterly update on activities at its Plomosas property in Chihuahua. A scoping study is in progress, which includes the assessment on the possibility to re-start the mine, targeting a 200-400 tonnes per day (tpd) operation. Exploration efforts have shown new areas of mineralization, as the underground Tres Amigos South, and Carola South areas, with 40 samples averaging 20% combined Pb-Zn, and surface exploration includes the drilling of the Tres Amigos North zone.
  • Alamos Gold Inc. presented exploration and development activities for the first quarter 2017, including information from its Mexican properties. In Sonora, development continues at La Yaqui, where $5.3 M were spent during the period and further $7.0 are to be spent to complete construction of the mine that is expected to produce 25 K Oz Au per year. At La Yaqui Grande also 9,227 m of drilling in 46 holes were collared, with many results still pending. The exploration budget for the Mulatos district is of $17 M, now focusing beyond La Yaqui and Cerro Pelon, as new targets emerge, including Los Bajios, La Yaqui Norte, El Refugio, El Halcon and El Carricito.

ON DEALS AND CORPORATE ISSUES

  • Fortuna Silver Mines Inc. provided an update on the ongoing regulatory review of the Company’s 2015 annual filings by the United States Securities and Exchange Commission (SEC), and the management cease trade order (MCTO) it is subject to. Fortuna reported that the “SEC has verbally communicated it will accept the Company’s use of inferred resources for the calculation of depletion expense, provided that the Company includes additional disclosure regarding these calculations”. It anticipates it will file the needed documents in the coming weeks, not later than May 30, 2017.
  • Southern Silver Exploration Corp. acquired claims adjacent to the SW of its Cerro Las Minitas project in Durango. The claim package comprises two concessions, Biznagas and Los Lenchos, contiguous to the SW to Southern Silver’s concessions. Southern Silver has agreed to make to La Cuesta International Inc. “periodic payments on a semi-annual basis accelerating from $5,000 to $25,000 over a ninety-six month period and a 1% NSR with such periodic payments being credited to NSR payments. Subsequent to payment of $5,000,000 in NSR payments the royalty is reduced to 0.5%. All monetary references are to U. S. dollars.”

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, Potassic feldspar alteration in diorite with quartz-barite veinlets, Central Chiapas. Photo by Jorge Cirett.

Diorite, strong potassic alteration, chlorite in fracures and barite veinlets

Highlights on the Third Week of February, 2017. Mineral Exploration in Mexico

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During the 7th week of the year (13th to 19th February, 2017) at least 21 press releases were announced by companies working in Mexico, including a financing round by one company. ON EXPLORATION, in Sonora, Riverside presented 2016 exploration results for an orogenic gold target, and Kootenay informed of drilling results by a partner on a silver property. In Zacatecas Goldcorp informed of exploration results and coming work on several targets and regional exploration. ON MINING, GoGold released financial results for the fourth quarter 2016, Pan American, Capstone, New Gold, Agnico Eagle and Goldpcorp presented 2016 results. Argonaut Gold and Agnico Eagle presented their three-year outlook on production. Primero Mining halted operations due to a strike.  ON FINANCING, One company reported the opening of a non-brokered private placement for 1.85 M. ON RESOURCES AND DEVELOPMENT, Torex Gold reported high grade drill intercepts at its Limon-Guajes mine; Mag silver released high grade results from drilling in the Valdecañas vein; Pan American Silver presented reserve and resource estimates for its operations in Zacatecas, Chihuahua and Sonora. Agnico Eagle present drilling results on a program aimed at increasing resources at its El Barqueño property in Jalisco; Peñoles is to invest US$1,100 M mainly in developing a mine in Guerrero and upgrading a zinc plant in Coahuila.   ON DEALS AND CORPORATE ISSUES, Firma Holdings and MX Gold closed a deal on a smelter in Durango.

ON EXPLORATION

  • Kootenay Silver Inc. announced high-grade silver intercepts from the drill program operated by Pan American Silver Corp. at its La Negra property in Sonora. Intercepts include 30.95 m @ 66 g/t Ag; 44.15 m @ 149 g/t Ag, including 9.15 m @ 449 g/t Ag; 8.7 m @ 352 g/t Ag; 32.15 m @ 237 g/t Ag; 14.4 m @ 98 g/t Ag; 28.55 m @ 145 g/t Ag, including 8.15 m @ 460 g/t Ag.
  • Riverside Resources Inc. reported progress on work funded by its partner Centerra Gold Inc. on the Glor project in Sonora. “The 2016 exploration programs included geological mapping at a 1:5,000 scale, a 37.7 line- kilometre induced polarization survey and a 136 line-kilometre ground magnetics survey.” More than 2,500 geochemical samples were collected, including rockchip, soil and channels on trenches. Results include a 2,200 m by 900 m soil anomaly, broadly coincident induced polarization anomalies, and trench sampling results like 9 m @ 0.42 g/t Au, 27 m @ 0.37 g/t Au and 12 m @ 0.50 g/t Au.
  • Goldcorp Inc. provided an exploration update, including work in Mexico, where three projects accrued almost 14,000 m of drilling on the fourth quarter 2016. At La Palma target (adjacent to the boundary of the final Peñasquito pit) 8,203 m were drilled on 17 holes, with some mineralization intersected. At Saltillito (80 km E from Peñasquito), 1,964 m of drilling in four holes failed to intersect economic mineralization. At Los Lobos, 50 km south from Peñasquito, reconnaissance work is to start on the first quarter 2017. Regional exploration has started on a 50 x 30 km block in the Peñasquito region, and targets are expected to be generated.

ON MINING

  • GoGold Resources Inc. released financial results for the fourth quarter 2016, with $6.9 M revenue from the sale of 413, 941 AgEq ounces, at cash cost $6.70 per AgEq ounce. During the quarter 4,249 Oz Au and 102,371 Oz Ag were produced, for a total of 403,545 Oz AgEq. The Parral tailings project in Chihuahua produced 1,539 Oz Au and 91,022 Oz Ag, while at Santa Gertrudis in Sonora 2,710 Oz Au and 11,349 Oz Ag were produced.
  • Pan American Silver Corp. presented unaudited results for 2016, including figures from its Mexican operations. At La Colorada in Zacatecas, 5.80 M Oz Ag and 2.93 K Oz Au were produced at cash cost $6.15; at Dolores in Chihuahua, production was 3.84 M Oz Ag, 102.76 K Oz Au; at Alamo Dorado in Sonora, 1.86 M Oz Ag, 8.38 K Oz Au were produced. Lead zinc and copper production was not reported by mining unit. Development and mining investments are expected to result in significant production increments in Dolores and La Colorada for 2017.
  • Capstone Mining Corp. presented its financial results for 2016, including production figures for its Mexican operation. At Cozamin in Zacatecas, 14,307 tonnes of copper were produced during 2016 at a cash cost of $1.48 per Lb Cu and all-in cost of $1.88 per Lb Cu. Lower production was a result of a mine development shortfall on the first half of the year, with mine development increasing on the second half.
  • New Gold Inc. presented its 2016 financial results, including figures from its Cerro San Pedro mine in San Luis Potosi. For Cerro San Pedro the 2017 guidance is to produce (from stockpiles, mining has ceased) 35 – 45 K Oz Au at cash cost $1,080 – $1,120 and AISC $1,090 – $1,130. The company had 135.7 M in cash and 50.2 M in short term money market instruments at the end of 2016.
  • Goldcorp Inc. reported full year 2016 results, including figures from its operations in Mexico. At Peñasquito 183 K Oz Au were produced during the fourth quarter 2016. During 2017 gold production is expected to total 410 K Oz, at an AISC of $825 per ounce. The pyrite leach project is to treat Zn tailings and is expected to add 110 to 140 K Oz Au and 4-6 M Oz Ag annually, with production starting on 2019.
  • Argonaut Gold Inc. provided three-year production outlook and updated mineral reserves and resources. First gold production at San Agustin is expected during the third quarter 2017, with the project expected to produce an average of 80 K AuEq Oz per year at cash cost of $650 per gold ounce.

argonaut-gold-reserves-and-resources-20161 argonaut-3-year-outlook11

  • Agnico Eagle Mines Ltd. reported results for 2016 and production estimates for the next few years, including figures from its operations in Mexico. The Exploration budget for Mexico is $26.8 M, with 119,000 m of drilling, of which 65,000 m are in the mine areas and the rest in exploration projects. At Pinos Altos 2.26 M tonnes of ore were processed in 2016 at 6,175 tonnes per day (tpd) grading 2.78 g/t Au to produce 192,772 Oz Au. At the Creston Mascota satellite operation 2.1 M tonnes of ore were processed (5,790 tpd) at a grade of 1.12 g/t Au, to produce 47,296 Oz Au. At La India 5.84 M tonnes of ore were processed (15,948 tpd) @ 0.81 g/t Au, to produce 115,162 Oz Au.agnico-eagle-reserves-and-resources-20161agnico-3-year-outlook11
  • Primero Mining Corp. halted production at its San Dimas mine in Durango due to unionized workers initiating a strike action. “Primero’s key focus in these negotiations has been to better align the short-term bonus structure with overall mine-site performance and profitability, and to move the labour force onto a more continuous shift cycle to improve productivity.”

ON FINANCING

  • Source Exploration Corp. arranged a non-brokered private placement for gross proceeds of $1.85 M, to replace the second tranche of the previously announced non-brokered private placement.

ON RESOURCES AND DEVELOPMENT.

  • Torex Gold Resources Inc. released results from the first round of its step out drilling program for its Sub-Sill target at its Limon-Guajes operations in Guerrero. High grade intercepts (core length) in skarn mineralization include: 2.9 m @ 33.7 g/t Au, 0.3% Cu; 7.4 m @ 23.0 g/t Au, 1.2% Cu; 16 m @ 19.4 g/t Au, 1.0% Cu; 4.1 m @ 23.2 g/t Au, 1.2% Cu; 15.5 m @ 14.9 g/t Au, nil Cu; 5.8 m @ 23.9 g/t Au, 0.1% Cu; 3.9 m @ 112.7 g/t Au, 1.3% Cu; 10.6 m @ 9.1 g/t Au, 3.4% Cu. The 34 hole, 7,727 meter program tested an area roughly 350 m by 150 m, with the system remaining open in several directions. “Gold occurs in low and high sulfidized pyrrhotite rich skarns, while silver and copper mineralization is primarily determined by the degree of sulfidation of the host skarn. Mineralization is strongly associated with a late stage retrograde alteration characterized by amphiboles, chlorite, calcite ± quartz ± epidote, affecting pyroxene-garnet marble related exoskarn and granodiorite porphyry related endoskarn. Locally mineralization occurs in narrow lenses of massive sulfides.”
  • Mag Silver Corp. reported results for 13 exploration and infill holes that extend the high-grade mineralization on the Deep Zones of the Valdecañas vein system on their Minera Juanicipio JV with Fresnillo PLC in Zacatecas. The Deep Zone West has now been traced over 550 m, with vein widths from 11.4 m to 26.5 m and a minimum vertical height of 200 m. The Deep Zone East is continuous over 750 m, 5.6 m to 29.9 m in width, with up to 300 m of vertical extent. Underground development and mining infrastructure continue to be progressed, the ramp reached the uppermost part of the Valdecañas vein in December 2016 and footwall development has commenced.Drill highlights, Feb 20171.jpg

 

  • Golden Minerals Co. presented a preliminary economic assessment (PEA) for its Santa Maria project in Chihuahua. Indicated resources stand at 180 K tonnes @ 304 g/t Ag, 1.4 g/t Au and 160 K tonnes of inferred resources @ 321 g/t Ag, 0.9 g/t Au. Life of mine (LOM) of 3.2 years, for production of 2.1 M Oz Ag, 7.2K Oz Au at cash cost $12 per silver ounce (net of Au credits).
  • Pan American Silver Corp. reported reserves and mineral resources as of the end of 2016, which includes figures on its La Colorada mine in Zacatecas, Dolores mine in Chihuahua and La Bolsa project in Sonora.pan-american-silver-reserves-and-resources1
  • Telson Resources Inc. completed an agreement for the acquisition of a sulfide flotation mineral processing facility for CDN$1.3 M, 50% to be paid immediately and the balance when the plant is transported. “Equipment purchased is estimated to make up approximately 80% of the total milling equipment required to construct a fully functioning mill facility at Tahuehueto.”
  • Agnico Eagle Mines Ltd. presented advances on its exploration program at El Barqueño, Jalisco. During 2016 40 holes were drilled in the Olmeca area, in the Socorro and Mortero veins. The Socorro vein has been defined for 1.6 km, and remains open. Results include 5.2 m (true width) @ 19.1 g/t Au, 14 g/t Ag; 4.3 m @ 2.8 g/t Au; 12.1 m @ 7.0 g/t Au, 5 g/t Ag; 6.9 m @ 7.3 g/t Au. The Mortero vein has been delineated for 300 m in length and 300 m in depth, and remains open in all directions. At the Mortero vein results include 39.6 m @ 51 g/t Ag; 41 m @ 73 g/t Ag; 16.4 m @ 1,111 g/t Ag . “Approximately 45,000 metres of additional drilling is expected to be completed by the end of 2017 at the El Barqueno project, principally at the Socorro, Mortero, Tierra Blanca, Cuauhtémoc, Peña de Oro, Peña Blanca, San Diego, and El Rayo prospects and in the Tecolote-Tortuga areas, within the south area of the El Barqueno project. Exploration expenditures in 2017 are expected to total approximately $16.8 million”.
  • Industrias Peñoles is to invest US$1,100 M in Mexico. The Rey de Plata mine (Au-Ag-Cu-Pb-Zn) in Guerrero is in construction, and production is expected by the end of 2017 at a rate of 4,500 tonnes per day; the price tag is estimated at $450 M. The zinc processing plant in Torreon, Coahuila, is also being upgraded to produce 50% more than the current output by early 2018.

ON DEALS AND CORPORATE ISSUES

  • Firma Holdings Corp. which has a JV with MX Gold Corp. regarding its Durango Smelter Project, has now completed the purchase of 100% interest in Inversiones Durango San Luis, S.A. de C.V.. “The acquisition includes a fully permitted smelter that was completed in 2014 for a throughput capacity of 50 tonnes per day (TPD). The smelter was built to receive and process high-grade direct ship ores and concentrates from small-scale miners…”.
  • MX Gold Corp. entered into a binding option agreement with American Metal Mining S.A. de C.V. whereby, upon certain scheduled payments totaling US$1.525 M, will acquire 50% of the shares of a private Mexican corporation that holds the IDS project, which includes a past producing gold smelter in Durango.

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, breccia-vein float in central Chihuahua, displaying quartz vein and minor volcanic rock fragments in a silicified reddish matrix.

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

/ Gambusino Prospector / Leave a comment

During the 2nd week of the year (9th to 15th January, 2017) at least 31 press releases were announced by companies working in Mexico, including ten preliminary production reports for 2016. ON EXPLORATION, nine companies presented exploration updates, reflecting fairly strong activity in this new year. A company completed soil surveys in a project in Sinaloa, and another in Sonora. Also in Sonora, a project generator presented 2016 results and presented plans for the year, while a mining company released high grade gold drilling results on its brownfield and mine site exploration. In Zacatecas, results from surface exploration were received in one project, while another property received the needed drilling permit. On Nayarit, three more holes have been completed in a property. Anomalous but still interesting drilling results were received for a project in Guerrero. In Chihuahua, results from underground channel sampling in a silver project were released, whereas in Oaxaca, a polymetallic vein system continues to expand, showing high grade drill intercepts on a 200 m step out. ON MINING, Torex Gold, US Antimony, Endeavour Silver, HECLA Mining, Great Panther, Fortuna Silver, Timmins Gold, Capstone, Premier Gold, Pan American Silver, and Gold Resource presented 2016 production figures. A company presented the 2016 production figures, and plans for the coming years in a copper mine in Baja California Sur.  ON FINANCING, Two companies reported financing exercises for a total of $16.4 M in gross proceeds. ON RESOURCES, one company filed NI-43-101 reports for two projects in Sonora and Nayarit. ON DEALS AND CORPORATE ISSUES, an agreement on the sale of one of the major gold operations in Mexico has been completed. An agreement on the option of a past producing mine in Guanajuato was achieved between a junior Canadian company and a local Mexican enterprise. A company with projects in Sonora remains in operations suspension on the TSX.

ON EXPLORATION

  • Silver One Resources Inc. has completed soil geochemical surveys over its La Frazada property in Sinaloa and at Peñasco Quemado in Sonora. Results are pending.
  • Arian Silver Corp. released high grade results from its surface sampling program at its San Celso property in Zacatecas. Results include 1.05 m @ 396 g/t Ag, 1.8 m @ 146 g/t Ag, 1.1 m @ 116 g/t Ag, 2.2 m @ 286 g/t Ag, 0.5 m @ 350 g/t Ag, 0.45 m @ 347 g/t Ag and 1.15 m @ 254 g/t Ag.
  • Gainey Capital Corp. announced that two of three holes to be drilled on the La Higuerita mineralized zone at its El Colomo property in Nayarit have been completed and samples shipped for assay. Four more holes are to be drilled between the Higuerita and Nueva Victoria zones, which are 250 m apart.
  • Defiance Silver Corp. has received the necessary permits for drilling up to 60,000 m on its San Acacio property in Zacatecas. The permit is valid for 4.5 years. Defiance will now finalize its program for the 1.2 km of vein strike length that hosts the San Acacio deposit, and eventually explore the 4.4 km of the vein that has yet to see modern exploration.
  • Minaurum Gold Inc. released results from its 4,200 m program in its Biricu property in the Guerrero Gold Belt. Four of the nine holes intercepted anomalous gold values, including 17 m @ 230 ppb Au and 117.8 m @ 191 ppb Au. Surface mapping and drilling indicates the favorable contact between the Mezcala and Morelos Formations is shallower further north in the Punto Rojo area.
  • Premier Gold Mines Ltd. released 2016 exploration results from several areas at its Mercedes mine in Sonora, where 27,442 m of drilling were completed in 135 core holes during the period. At the Mercedes/Barrancas/Lagunas area drill intercepts include 8.2 m @ 11.9 g/t Au, 81 g/t Ag; 0.9 m @ 7.3 g/t Au, 260 g/t Ag. At Diluvio drill intercepts include 12.5 m @ 16.0 g/t Au, 13 g/t Ag; 4.5 m @ 29.2 g/t Au, 49 g/t Ag; 21.0 m @ 3.2 g/t Au, 21 g/t Ag; 4.5 m @ 9.5 g/t Au, 20 g/t Ag; 25 m @ 3.1 g/t Au, 7 g/t Ag; 26 m @ 3.0 g/t Au, 9 g/t Ag; 13.5 m @ 17.2 g/t Au, 33 g/t Ag; 61.6 m @ 3.7 g/t Au, 11 g/t Ag. “Mineralization at Diluvio is distinct from other Mercedes deposits in that it consists of two or more gently-dipping “Manto” type ore bodies that could be amenable to bulk underground mining or higher grade narrow vein mining.” At Rey de Oro target (open pit and underground target) intercepts include 13.7 m @ 3.7 g/t Au, 21 g/t Ag; 10 m @ 1.9 g/t Au, 36 g/t Ag; 17.6 m @ 1.4 g/t Au, 49 g/t Ag; 21.7 m @ 3.7 g/t Au, 23 g/t Ag; 13.9 m @ 9.9 g/t Au, 122 g/t Ag; 4.6 m @ 68.4 g/t Au, 72 g/t Ag.
  • Kootenay Silver Inc. released results from underground adit channel sampling at its La Cigarra property in Chihuahua. 17.5 m @ 130 g/t Ag, 0.13 g/t Au (includes 2.0 m @ 536 g/t Ag, 1.0 m @ 569 g/t Ag); 5.5 m @ 173 g/t Ag, 0.15 g/t Au; 12.0 m @ 49 g/t Ag, 0.11 g/t Au; 6.0 m @ 28 g/t Ag, 0.18 g/t Au. These results will aid in the definition of new targets on the deposit.
  • Gold Resource Corp. announced a significant expansion of its Switchback vein system, with a greater than 200 m step-out drill interception at the Aguila’s project Arista mine. At least 6 vein were cut, with intercepts like: 4.05 m @ 1.25 g/t Au, 117 g/t Ag, 1.0% Cu, 2.1% Pb; 12.9% Zn; 1.10 m @ 2.36 g/t Au, 566 g/t Ag, 0.55% Cu, 0.7% Pb, 1.2% Zn; 3.28 m @ 0.87 g/t Au, 257 g/t Ag, 0.18% Cu, 0.3% Pb, 0.5% Zn. The discovery outcrop of the Switchback system is evident in a ridge approximately 300 m further on strike to the NW from this intercept.
  • Millrock Resources Inc. presented 2016 results and plans for 2017. During 2016 signed an option agreement with Centerra Gold Inc. on Los Chinos and Los Cuarenta projects in Sonora, drilling at Los Chinos and completing surface exploration at Los Cuarenta. For 2017 Millrock and Centerra signed a 250 K alliance agreement for exploration in Sonora; drilling of the Los Cuarenta project is planned for the spring.

ON MINING

  • Torex Gold Resources Inc. poured 279,937 Oz Au during its first year of operations at its El Limon-Guajes mine in Guerrero. The company plans to sell 350 – 380 K Oz Au during 2017, at cash cost $525 – $575 and AISC $775 – $825 per Au Oz sold. The exploration budget for 2017 is $10 M.
  • US Antimony Corp. has started mining in its Mexican antimony and gold and silver properties, aiming to produce 50 K Lb Sb during January. During 2016 the company produced 277.8 K Lb of direct shipping ore @ 35.9% Sb at its Wadley mine in San Luis Potosi; at Soyatal, Queretaro, 155.3 K Lb of mill concentrate @ 24.6% Sb were produced, whereas at Los Juarez in Queretaro, the company is awaiting the permit on the cyanide leach plant. The flotation mill is to start the process of a 19 K ton stockpile of Los Juarez ore to test recovery rates.
  • Endeavour Silver Corp. reported 2016 production of 5.4 M Oz Ag and 57,375 Oz Au, or 9.7 M Oz Ag/Eq. At Guanaceví in Durango, 367.4 K tonnes were processed (1,007 tonnes per day) at a grade of 232 g/t Ag, 0.51 g/t Au (recoveries of 86.3% Ag, 88.4% Au) to produce 2.36 M Oz Ag and 5,328 Oz Au. At Bolañitos in Jalisco 507.7 K tonnes were processed (1,391 tonnes per day) at a grade of 81 g/t Ag, 2.31 g/t Au (recoveries of 79.6% Ag, 81.5% Au) to produce 1 M Oz Ag and 30,720 Oz Au. At El Cubo 583.8 K tonnes were treated (1,599 tonnes per day) at a grade of 123 g/t Ag, 1.41 g/t Au (recoveries of 87.4% Ag, 80.6% Au) to produce 2 M Oz Ag, 21,327 Oz Au. Over 16.km of mine development were carried out on the three mining units, and more than 34,000 trees were planted, receiving the annual “Socially Responsible Company Award” on the three units.
  • HECLA Mining Co. produced 17.2 M Oz Ag (48% increase) and 233,929 Oz Au (24% increase) during 2016 in its operations in several countries. At San Sebastian in Durango, 4.3 M Oz Ag and 34,042 Oz Au were produced.
  • Great Panther Silver Ltd. produced 2 M Oz Ag and 22,238 Oz Au during 2016. At the Guanajuato Mine Complex 320.9 K tonnes were milled @ 163 g/t Ag, 2.43 g/t Au (recoveries of 87.9% Ag, 86.4% Au) to produce 1.47 M Oz Ag and 21,626 Oz Au. At the Topia mine in Durango 55.8 K tonnes were milled @ 354 g/t Ag, 0.56 g/t Au (recoveries of 90.4% Ag, 60.6% Au) to produce 574 K Oz Ag, 612 Oz Au, 1,034 tonnes Pb and 1,496 tonnes Zn.
  • Fortuna Silver Mines Inc. reported 2016 production, which includes numbers from its San Jose mine in Oaxaca, where 905.4 K tonnes were milled (2,596 tonnes per day) at a grade of 228 g/t Ag, 1.72 g/t Au (recoveries of 92.3% Ag, 92.1% Au) to produce 6.1 M Oz Ag and 46,018 Oz Au. That production was reached at AISC $8.4 per silver ounce. Major capital investments for 2017 include $6.5 M for mine development, $2.2 M for equipment and infrastructure, $6.5 M tailings on a filtration plant expansion and $7 M for brownfield exploration (31,00 m of drilling, 600 m of underground development for drilling).
  • Capstone Mining Corp. announced production results for 2016, which include figures on its Cozamin mine in Zacatecas, where 1 M tonnes of ore were milled (2,736 tonnes per day) at a grade of 1.51% Cu, 0.66% Zn, 0.07% Pb, 43 g/t Ag (recoveries of 94.8% Cu, 63% Zn, 18.7% Pb, 72.4% Ag) to produce 53,744 tonnes of copper concentrate (26.6% Cu, 566 g/t Ag), 8,866 tonnes of zinc concentrate (47.3% Zn) and 222 tonnes of Pb concentrate (58.4% Pb, 3,155 g/t Ag). During the period 13,956 tonnes of payable copper were shipped.
  • Timmins Gold Corp. reported production results for 2016. At San Francisco, in Sonora, during the period 7.65 M tonnes of ore grading 0.58 g/t Au were processed, 3.96 M tonnes of low grade ore @ 0.24 g/t Au were stockpiled and 14.9 tonnes of waste moved (2.00 strip ratio) to accomplish the production of 100,322 Oz Au and 56,325 Oz Ag. Ore was processed at an average daily rate of 20,909 tonnes per day. Guidance for 2017 is between 70 K and 75 K Oz Au at cash costs of US$900 to US$950 per gold ounce. Mining operations at San Francisco are expected to continue to 2023 producing 450 K to 500 K Oz Au. At Ana Paula, in Guerrero, the feasibility study test work is advancing, with the 20,000 m drilling nearing completion. The feasibility study should be complete by mid-2017, and construction permits received before the end of the year.
  • Premier Gold Mines Ltd. produced 22,760 Oz Au in 2016 on its Mercedes mine in Sonora. Forecast for 2017 is the production of 85 K – 90 K Oz Au, at cash cost $680 – $710 per Au Oz and AISC $810 – $840 per Au Oz. Mercedes exploration budget for 2017 is $4.7 M, including some 20,000 m of drilling; The planned expansion and mine development is budgeted at $7.9 M.
  • Pan American Silver Corp. reported its operational results for 2016. The company produced 5.8 M Oz Ag, 2,930 Oz Au at La Colorada, Zacatecas, at cash cost $6.15; at Dolores, Chihuahua, produced 3.84 M Oz Ag, 102,760 Oz Au, at cash cost -$1.08 and 1.86 M Oz Ag, 8,380 Oz Au at Alamo Dorado, Sonora, at cash cost $16.02. The La Colorada mine is expected to mine 1,500 tonnes per day in 2017, to produce 6.4 to 6.9 M Oz Ag; the new underground mine at Dolores is to extract 1,500 tonnes per day by the end of 2017, with total production of 4.0 to 4.5 M Oz Ag and 109,100 to 115,000 Oz Au, whereas the Alamo Dorado mine in Sonora will cease processing stockpiled inventory during the first quarter 2017, and enter the reclamation phase. The company is to spend $21 M on near-site and regional exploration in the countries it operates, with a 110,000 meters drill program. The company plans regional exploration in Mexico and Peru.
  • Gold Resource Corp. announced preliminary 2016 production. The company produced at its El Aguila mine in Oaxaca 27,629 Oz Au, 1.86 M Oz Ag, 1,035 tonnes of copper, 4,049 tonnes of lead and 14,302 tonnes of zinc during the period.
  • Camrova Resources Inc. informed that the Boleo mine in Baja California Sur produced 14,284 tonnes of copper cathode, double from 2015, but short of the targeted 22,574 tonnes for 2016, due to a variety of factors (union action, a hurricane, lower grade feed etc.). Production for 2017 is aimed to double that of 2016. The mine plans to produce 2.0 M tonnes of ore from surface and 0.7 M tonnes from underground operations, to average 1.24% Cu, with recoveries of 84% Cu. Surface operations strip ratio is expected to exceed 8:1, to mine 1.16% Cu open pit ore. The 2017 budget is still 130 M short of funding. The life of mine plan extends to 2031, with average mine production of 3.2 M tonnes of ore (1.9 M tonnes surface, 1.2 M tonnes underground), for a total of 45.9 M tonnes @ 1.3% Cu, 0.07% Co, 0.5% Zn.

ON FINANCING

  • Mx Gold Corp. announced its intention to undertake a private placement to raise up to $2.6 M gross proceeds (Magistral del Oro, Chihuahua).
  • Timmmins Gold Corp. issued 36,400,000 units additionally and pursuant to the company’s short form prospectus dated November 28, 2016, for total net proceeds amounting $13.8 M (San Francisco mine in Sonora, Ana Paula project in Guerrero).

ON RESOURCES

  • Silver One Resources Inc. filed two NI-43-101 technical reports on the La Frazada and Peñasco Quemado silver properties in Nayarit and Sonora respectively. Both properties had resource estimates by the previous owner, Silvermex Resources Ltd. At La Frazada there is a Measured and Indicated resource of 4.7 M Oz Ag, 42.4 M Lb Pb+Zn and an Inferred resource of 3.8 M Oz Ag, 41 M Lb Pb+Zn. At Peñasco Quemado there is a Measured and Indicated resource of 9.6 M Oz Ag.

ON DEALS AND CORPORATE ISSUES

  • VanGold Resources Ltd. entered into an agreement with Exploraciones Mineras del Bajio, SA de CV to acquire a 100% interest on El Pingüico property in Guanajuato. Vangold will pay US$20 K on execution, US$30 K on receipt of TSX approval, issue 5 M common shares and make a final payment of US$50 K six months from TSX approval. A 4% NSR and 15% NPI is to be paid on stockpile minerals, and 3% NSR (1% can be purchased back for US$1 M) and 5% NPI on mined mineralization. The 71 has. Property includes the old Pinguico mine with a NON-43-101 compliant estimate of 320 K tonnes @ 1.16 g/t Au on an underground stockpile.
  • Goldcorp Inc. entered into a share purchase agreement with Leagold Mining Corp. to sell its Los Filos mine in Guerrero. Goldcorp will receive $438 M, consisting of $279 M in cash, $71 M in Leagold common shares and certain tax receivables of $88 M. At the close of the transaction Goldcorp will own 30% of Leagold shares.
  • Colibri Resource Corp. announced that its shares remain halted at the TSX, pending reception and review of documentation regarding the acquisition of Canadian Gold Resources.

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, makeshift tauna remains south of La Rumorosa, Baja California.

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