Welcome to the Forum

mining (4)

By Miguel A Heredia

During the seventh week of the year (February 11th to February 17th, 2019), at least 32 press releases were announced by companies working in Mexico, with twelve communicating production results, seven informing on exploration results, six disclosing deals and corporate issues, three announcing financing rounds, three reporting on resources and development of their properties, and one discussing Mexican issues. ON MEXICO ISSUES, Michael Harvey, director of Corporate Affairs for GoldCorp declared that Zacatecas has lost attractiveness for mining.  ON EXPLORATION, In Sonora, Silver One commenced a 1,000m drilling program at its Peñasco Quemado project,  SilverCrest reported drill results and discover of the Babi Sur Vein within its Las Chispas project, and Silver Viper provided an update of the 2018 drilling program at its La Virginia project. In Chihuahua, Evrim and its partner, Harvest Gold reported drilling results from its Cerro Cascaron project, and Ethos received permits for trenching and drilling its La Purisima Au project. In Jalisco, Evrim reported drilling results from its Cuale project. In the State of Mexico, Candente commenced a drilling program to explore near surface drill targets at its El Oro project.  ON MINING, Alio provided an update of the operation of its San Francisco mine in Sonora. Hecla reported Q4, 2018 production results from its San Sebastian mine and Avino reported full 2018 year production from its Avino mine in Durango. Capstone presented Q4 and full year 2018 production results from its Cozamin mine in Zacatecas. Santacruz Silver announced Q4 and full year 2018 production results from their Mexican operations. Telson released full year 2018 production results from its Campo Morado mine in Guerrero.  Consolidated Zinc presented January 2019 production results from its Plomosas mine in Chihuahua. Fortuna reported and confirmed no contamination of soil at its San Jose mine in Oaxaca.  ON FINANCING, Auxico closed a non-brokered private placement for gross proceeds of $400K (Zamora project, Sinaloa). Riverside announced a private placement to raise gross proceeds for CAD$1.5M (Cecilia project, Sonora). Magna Gold announced a proposed non-brokered private placement for gross proceeds of up to CAD$3.2M (Mercedes project, Sonora).  ON RESOURCES AND DEVELOPMENT, Fortuna Silver announced results from the brownfield exploration program conducted at its San Jose mine in Oaxaca.  Torex announced infill drill results from its El Limon Deep project in Guerrero. Bacanora Lithium provided an update of the H2 activities developed at its Sonora Lithium project in Sonora. Hecla increased mineral resource at its San Sebastian mine in Durango. ON DEALS AND CORPORATE ISSUES, Sonoro announced management appointments (Cerro Caliche, Sonora).  Prospero Silver provided an update of its option agreement with Fortuna Silver on its Pachuca SE property in Hidalgo. Great Panther announced the approval from their shareholders to acquire Beadell Resources and change its name to Great Panther Mining Limited (Topia mine, Durango). Evrim granted 200K stock options to their employees (Cuale project, Jalisco). Magna Gold provided an update of its option agreement to acquire 100% interest on the Mercedes property in Sonora. Telson announced that they have identified a sophisticated concentrate theft from its Campo Morado mine in Guerrero during its transportation to the Trafigura warehouses in the Manzanillo port.

 

ON MEXICO ISSUES

  • Michael Harvey, director of Corporate Affairs for GoldCorp Inc., declared that Zacatecas has lost attractiveness for mining after the Supreme Court of Justice of the Nation (SCJN) declared constitutional 4 taxes called ecological (Extraction of Minerals, Emission of Gases to the Atmosphere, Emission of Contaminants to the Soil, Subsoil and Water and the Deposit and Storage of Residues) on the mining sector. It sends a very negative signal about the stability of the investment in Zacatecas.

ON EXPLORATION

  • Silver One Resources Inc., commenced a 1,000m drilling program at its Peñasco Quemado project in Sonora. The drilling program will test three targets selected on coincidental geochemical and geophysical anomalies. The company will test two targets in the eastern part of the property: a) the down-dip extension of the drill defined historic Ag resource area, interpreted as a shallow southwest-dipping replacement manto, coincident with a low-intermediate resistivity anomaly, and b) the along-strike extension of the historic Ag resource area as identified by strong > 3 km long southeast trending Zn, Pb, Ba, and Mn in soil anomalies and partially coincident with geophysical anomalies. In the western part of the property, Silver One will test strong Zn, Pb, and Cu soil anomalies with coincidental geophysics in an area drill tested by Silvermex in 2008 where significant intersections were encountered as that in Hole PQRC51 with 4.5m of 340 g/t Ag at a depth of 88m from surface.
  • SilverCrest Metals Inc., reported drill results and discover of the Babi Sur Vein within its Las Chispas project in Sonora. Highlights results are Hole BAS18-31 which intersected 2.2m (TW) of 18.78 g/t Au and 2,147 g/t Ag (3,556 g/t AgEq), and Hole BAS18-07 with 2.2m of 4.63 g/t Au and 209 g/t Ag (556 g/t AgEq). “The high-grade footprint of the Babi Sur Vein has been drill intercepted with 14 core holes over approximately 1.5 km strike length. Of the 14 intercepts with an average true width of 1.4 metres, six are greater than 400 g/t AgEq (400 to 3,555 g/t AgEq)”.
  • Silver Viper Minerals Corp., provided an update of the 2018 drilling program conducted at its La Virginia project in Sonora. 4,753m were completed in 20 core drill holes, over five distinct prospect areas, distributed along 11km of the prospective structural trend. “The highlight of 2018 was El Rubi, a never-before drilled showing, located some 1.5km north of any previous drilling.  El Rubi returned a best result of 6m true width (13.3m core length) averaging 3.16 g/t gold and 228g/t silver for a gold equivalent grade of 6.42g/t Au”. 
  • Ethos Gold Corp., received the approved permits for trenching and drilling its La Purisima Au project in Chihuahua. Ethos announced the commencement of the trenching program and expects to start the drilling program in March, 2019. The target area is at least 2km long and has not seen modern and systematic exploration. The company has estimated an initial and modest budget of approximately US$350K to conduct trenching and drilling at La Purisima project.
  • Evrim Resources Corp., and its partner Harvest Gold Corp., reported drill results from their Cerro Cascaron project in Chihuahua. Nine core drill holes were completed at Serpiente Dorada, San Pedro, and Cascarita target areas for a total of 1,885m. Assay results have been received for only seven of the nine holes drilled to date. Significant drill interceptions were encountered in Hole SPT 18-01 (Serpiente Dorada target area) with 6.5m of 3.29 g/t Au and 6 g/t Ag, including 1m of 20.1 g/t Au and 22 g/t Ag, and Hole SPED 19-02 (San Pedro target area) with 4.8m of 1.02 g/t Au and 13 g/t Ag and 0.35m of 5.39 g/t Au and 24 g/t Ag.
  • Evrim Resources Corp., released additional drilling results from its Cuale project in Jalisco. Evrim has received assays from ten core drill holes completed in 2018 for a total of 2,179m. Significant drill intersections were encountered in Hole GLR18-04 with 32m of 0.83 g/t Au from surface, including 22m of 1.06 g/t Au, and a deeper interval with 12m of 0.34% Cu; Hole GLR18-09 with 11m of 0.31 g/t Au from 36m downhole, and Hole GLD18-10 with 4m of 0.42% Cu from 136m downhole.
  • Candente Gold Corp., begun a drilling program to test near surface drill targets at its El Oro project in the State of Mexico. “The Company remains committed to pursue drill targets previously developed on the San Rafael vein in the Mexico-Esperanza mine border area where three holes intersected high grades of gold and silver (30.7 g/t Au over 1.9m; 18.1 g/t Au and 137 g/t Ag over 0.4m, and 16.7 g/t Au and 32 g/t Ag over 1.4m) in the San Rafael and parallel veins as well as disseminated gold (1.0 g/t Au over 75m) in the overlying porous tuff horizon and has decided to develop more shallow targets as well”. The first target to be drill tested is the Cortaduras area which is about 6.5km west of the San Rafael vein and 5km west of the Veta Verde vein from which 6.4M Oz Au and 74 M Oz Ag (8M Oz AuEq) were produced historically in 4 mines.

ON MINING

  • Alio Gold Inc., reported that 528,770 tonnes of stockpile with a grade of 0.31 were stacked on the leach pads. Au production for the month of January was consistent with Q4 production at approximately 3,890 Oz (subject to finalization and refinery adjustments). Alio also announced that they have sufficient stockpiles to operate at this capacity throughout 2019 while the company continues developing an engineered plan for recommencing mining activities.
  • Hecla Mining Company, presented Q4, 2018 production results from its San Sebastian mine in Durango. Hecla processed 156,733 tonnes at the mill to produce 2.04M Oz Ag and 14,979 Oz Au.
  • Avino Silver & Gold Mines Ltd., released full 2018 production results from its Avino mine in Durango. In 2018, the company produced 1.28M Oz Ag, 8,100 Oz Au, and 4.8M Lb Cu (or 2.8 M Oz AgEq).
  • Capstone Mining Corp., presented Q4 and full year 2018 production results from its Cozamin mine in Zacatecas. In Q4, 2018, Capstone produced 9.3M Lb Cu for a total of 155.2M Lb Cu produced in the full year. Zn production in 2018 totaled 15M Lb Zn.
  • Santacruz Silver Mining Ltd., announced Q4 and full year production results from their Mexican operations. At its Veta Grande mine in Zacatecas, Santacruz milled 36,719 tonnes of 81 g/t Ag to produce 58.9K Oz Ag, 113 Oz Au, 660.8K Lb Pb, and 891K Lb Zn. In the full year, 150,281 tonnes were milled with a grade of 73 g/t Ag to produce 190.3K Oz Ag, 367 Oz Au, 1.76M Lb Pb, and 2.5M Lb Zn. At its El Rosario mine in San Luis Potosi, the company milled 16,676 tonnes of 42 g/t Ag to produce 18.9K Oz Ag, 131 Oz Au, 89.6K Lb Pb, and 358.4 Lb Zn. In the full year, Santacruz milled 61,184 tonnes of 43 g/t Ag to produce 72.4K Oz Ag, 379 Oz Au, 286.7 Lb Pb, and 2.3M Lb Zn.
  • Telson Mining Corporation, released full year production results from its Campo Morado mine in Guerrero. In 2018, Telson processed 585,601 tonnes of 1.02 g/t Au, 118 g/t Ag, 1.1% Pb, 4.3% Zn, and 0.37% Cu to produce 2,870 Oz Au, 622.3K Oz Ag, 4M Lb Pb, 36.3M Lb Zn, and 373.3K Lb Cu.
  • Consolidated Zinc Limited, presented January 2019 production results from its Plomosas mine in Chihuahua. The company mined 3,530 tonnes of 10.3% Zn and 3.3% Pb to produce 813K Lb Zn and 262K Lb Pb, with metallurgical recoveries of 84% and 85% respectively.
  • Fortuna Silver Mines Ltd., reported and confirmed that the overflow of the contingency pond at its San Jose mine in Oaxaca did not contaminate soils, and therefore no remediation is required. PROFEPA has already completed its investigation and confirmed the no contamination of soils from the overflow.

ON FINANCING

  • Auxico Resources Canada Inc., closed a non-brokered private placement for gross proceeds of $400K (Zamora project, Sinaloa).
  • Riverside Resources Inc., announced a plan to complete a non-brokered private placement to raise gross proceeds for CAD$1.5M. Net proceeds will be used to drill its Cecilia gold project in Sonora.
  • Magna Gold Corp, announced a proposed non-brokered private placement for gross proceeds of up to CAD$3.2M.

 

ON RESOURCES AND DEVELOPMENT

  • Fortuna Silver Mines Inc., reported results from the brownfield exploration program conducted at its San Jose mine in Oaxaca. The brownfield exploration program comprised 50.904m in 105 holes completed with up to six rigs in 2017 and 2018. Victoria is a primary target explored by underground drilling in which 27,302m in 53 holes were collared. Drill highlights include Hole SJOM781 with 13.5m (TW) of 119 g/t Ag and 0.57 g/t Au, Hole SJOM789 with 3m (TW) of 404 g/t Ag and 2.81 g/t Au, Hole SJOM794 with 6.3m (TW) of 213 g/t Ag and 1.24 g/t Au, Hole SJOM830 with 5.3m (TW) of 273 g/t Ag and 2.1 g/t Au, and Hole SJOM833 with 7.8m (TW) of 217 g/t Ag and 1.72 g/t Au. “Following the successful exploration results for 2018, the Company has allocated US$4.5 million to continued brownfield exploration at San Jose in 2019, including an estimated 11,500 meters of surface and underground diamond drilling and 450 meters of underground development for exploration drilling”.
  • Torex Gold Resources Inc., released results of the first 32 holes of its infill drill program completed at its El Limon Deep Zone project in Guerrero, which is the downdip extension of mineralization below the El Limon open pit. Significant drill intersections were encountered in Hole LDUG-026 with 8.5m of 25 g/t Au, Hole LDUG-013 with 7.5m of 24.9 g/t Au, Hole LDUG-021 with 15.2m of 16.8 g/t Au, and Hole LDUG-002 with 45.9m of 12.5 g/t Au.
  • Bacanora Lithium Plc., provided an update of the H2, 2018 activities developed at its Sonora Lithium project in Sonora. Bacanora has secured US$240M as part of the financing package to construct an initial 17,500 tpa Li carbonate operation and continues discussions with industry and strategic financial parties with regards to completing Sonora's finance package. The company also obtained and unrestricted access to develop and operate the Sonora mine secured following acquisition of La Ventana and La Joya mineral concessions for US$2.9M with the final consideration settled in August 2018. The processing plant sites change of land use permission was approved and augments the Manifestación de Impacto Ambiental (MIA-Environmental impact assessment permissions) for the project and the MIA for permanent road construction previously approved in 2018.These developments enable the project to commence construction, immediately after the project financing package is completed.
  • Hecla Mining Company, increased reserves and mineral resources at its San Sebastian mine in Durango. Proven reserves are 22,000 tonnes of 121 g/t Ag and 2.48 g/t Au (85K Oz Ag and 2K Oz Au contained), and probable reserves are 206,000 tonnes of 407 g/t Ag and 3.11 g/t Au (2.7M Oz Ag and 21K Oz Au contained). Total proven and probable reserves are 228,000 tonnes of 382 g/t Ag and 3.11 g/t Au (2.79M Oz Ag and 23K Oz Au contained).Indicated resources at San Sebastian are 2,243,000 tonnes of 202 g/t Ag, 1.55 g/t Au, 2.5% Pb, 3.5% Zn, and 1.6% Cu (14.7M Oz Ag, 115K Oz Au, 68.12M Lb Pb, 95.7M Lb Zn, and 44.3M Lb Cu contained). Inferred resources are 3,487,000 tonnes of 205 g/t Ag, 1.24 g/t Au, 1.7% Pb, 2.5% Zn, and 1.3% Cu (22.9M Oz Ag, 143K Oz Au, 27.1M Lb Pb, 39M Lb Zn, and 19.9M Lb Cu contained). Hecla also presented Q4 2018 drill results conducted with three core drill rigs and one RC drill. One underground drill rig completed in-fill drilling in the central and upper portion of the oxide zone along the Middle vein. Additionally, two core drill rigs tested shallower oxide mineralization along the West Francine, Esperanza veins and El Toro vein. Highlights drill results at the Middle vein are 3.6m of 2,080 g/t Ag and 6.84 g/t Au, at West Francine are 0.43m of 295 g/t Ag and 0.62 g/t Au, and at El Toro vein are 3.6m of 305 g/t Ag and 4.04 g/t Au, and 3.05m of 127 g/t Ag and 4.04 g/t Au.

ON DEALS AND CORPORATE ISSUES

  • Sonoro Metals Corp., announced the appointment of its Executive Director and Corporate Secretary (Cerro Caliche, Sonora).
  • Prospero Silver Corp., announced that TSX approved its option agreement with Fortuna Silver Mines Inc., in which Fortuna can earn up to 70% interest in the Pachuca SE property in Hidalgo.
  • Great Panther Silver Limited, announced the approval from their shareholders to acquire Beadell Resources Limited and to change its name to Great Panther Mining Limited.
  • Evrim Resources Corp., granted 200K options to their employees. The stock options are exercisable at a price of $0.32 per share for a period of five years.
  • Magna Gold Corp., provided an update of its option agreement on the Mercedes property in Sonora, to acquire 100% interest in two mining concessions for a four year period. These mining concessions cover approximately 345 hectares and Magna is entitled to acquire 100% interest by paying to the seller an aggregate of US$1.34M plus VAT of 16% in installments commencing on the 6th month from the effective date, and ending  on the 48th from the effective date; issue to the seller 3% NSR capped at US$3.5M and subject to the right of Magna to acquire all the NSR at a price of US$0.5M  per percentage point within the first three years of commercial production of the Mercedes property, and conditional on the completion of a going public transaction within six months of the effective date, issue 2,442, 105 common shares.
  • Telson Mining Corp., announced that the company has identified a sophisticated criminal operation to intercept concentrate trucks, remove some part of the Campo Morado concentrates and replace the same with lower quality concentrates. Now the company has taken measures to eliminate this issue with increased security including performing monitored and guarded concentrate transport from the mine to point of sale.    

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

 

On the picture above, “quartz blade” texture in a low sulphidation epithermal vein system in a prospect in Jalisco, Mexico.  Photo by Miguel A Heredia.

Read more…

European Space Agency Funding Mining Services

Hi everyone, 

I wanted to share an opportunity with the European Space Agency: https://business.esa.int/funding/invitation-to-tender/mining-kick-start  

The European Space Agency is providing funding for the development of mining services that use satellite data e.g. satellite imagery to monitor mining sites, GPS to help machine guidance 

Hope it looks interesting.  

Read more…

During the 4th week of the year (January 21st to January 27th, 2019), at least 20 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, CAMIMEX expressed it is in contact with diverse actors of the public administration to consolidate the international competitivity of the mining industry. ON EXPLORATION, In Chihuahua, Radius Gold staked the 9,600 ha. Rambler project, covering a 9 km trend of epithermal mineralization. In Sinaloa, Kootenay Silver released interesting surface sample results from its Copalito project. In Durango, Orex is to perform a VTEM airborne survey on the San Luis Del Cordero property. In Hidalgo, Prospero Silver initiated drilling at the Pachuca SE project, with funding by Fortuna Silver. ON MINING, Pan American, Argonaut, Gold Resource, Fresnillo, Sierra Metals and Americas Silver presented Q4 and full year 2018 production results (by the way, anyone has heard from Frisco on this regard?). Endeavour presented its 2019 production guidance. ON FINANCING, Premier Gold signed a credit agreement with Investec Bank as administrative agent for the lenders for a US$50 M credit facility. ON RESOURCES AND DEVELOPMENT, Endeavour updated its reserve and resource base, for a consolidated grand total of 132 M Oz Ag, 1.042 M Oz Au. Premier Gold presented high-grade intercepts from drilling at Mercedes, Sonora, where over 40,000 m of drilling were completed in 2018. Leagold is to produce 200-220 K Oz Au in 2019 at Los Filos, Guerrero. Azure Minerals presented a favorable scoping study for its Oposura project in Sonora. Impact Silver is defining extensions on veins at its Zacualpan property in Estado de Mexico. Excellon released high-grade results from surface exploration at its Platosa mine in Durango. Capstone filed on Sedar a technical report for Cozamin, Zacatecas. ON DEALS AND CORPORATE ISSUES, Prospero Silver announced the signature of the option agreement with Fortuna Silver on the Pachuca SE project.

ON MEXICO ISSUES

  • CAMIMEX (Cámara Minera de México), in a response to El Financiero, expressed that any modification to the mining regulations has to take into account the wellbeing of the communities and its environment. The organization, of which leading companies like Peñoles, Grupo México and Minera Frisco are members, considers mining is one of the most supervised sectors in the country, with a modern and robust regulatory frame, following international standards, although areas of opportunity can always be identified. “We have approached diverse authorities on the public administration and found openness to solve any pending issues and consolidate the international competitivity that benefits the country development”.

ON EXPLORATION

  • Orex Minerals Inc. contracted Geotech Ltd. To perform a VTEM (Versatile Time Domain Electromagnetic) airborne survey over its San Luis del Cordero project in Durango. Old mine workings and mineralized showings wrap around a Tertiary quartz-feldspar-porphyry intrusive. The helicopter-borne survey, with accompanying horizontal gradiometer and radiometric surveys, is to identify discrete conductive anomalies, as well as mapping lateral and vertical variations in resistivity. The airborne survey will be conducted over a grid at 100 m line-spacing for approximately 275 line-km, with measurements every 2-3 m along survey lines.
  • Prospero Silver Corp. has started phase 2 drilling at its Pachuca Se project in Hidalgo. Fortuna Silver Mines Inc. has an option to acquire up to a 70% interest in the 6,699 hectares project (24 km SE from Pachuca) by spending a total of US$8 M and completing a preliminary economic assessment (PEA), spending more than US$1 M in the first year. A six-hole, 4,200 m program started to test a number of potential drill targets. In a Fortuna funded program in early 2018, 1,800 m of drilling tested three distinct targets, intercepting what is interpreted to be the upper parts of a mineralized epithermal system.
  • Radius Gold Inc. staked a 9,600 ha property called the Rambler project, in Chihuahua, some 20 km NW from Radius’s Amalia project. Regional prospecting discovered epithermal mineralization in veins, vein breccias and disseminated zones over a 9 km trend, where samples with up to 16.5 gpt Au, 2,030 gpt Ag, 3.8% Cu, 13.9% Zn, 3.4% Pb were collected. Saucito is the main target area, where a 500 x 70 m stockwork returned an average of 177 gpt Ag on 31 samples. Other target areas with interesting rock chip sample results include La Machomera (up to 7.3 gpt Au, 469 gpt Ag), La India (up to 10.3 gpt Au, 16 gpt Ag), El Gringo (4.8 gpt Au, 3.8% Cu).
  • Kootenay Silver Inc. released results from surface sampling and mapping at the Copalito Ag-Au project in Sinaloa, same that covers an epithermal system with numerous veins 0.5-15 m in width and up to 2 km in strike length. Sampling Highlights include 7.2 Gpt Au, 3,770 gpt Ag at the 5 Señores and Agua veins respectively; 8.2 gpt Au, 583 gpt Ag across 1.1 m on the 5 Señores vein; 401 gpt Ag across 5.3 m on 5 Señores vein; 532 gpt Ag over 3.0 m and 306 gpt Ag over 4.9 m across the Agua vein; 17.4% Zn, 9.9% Pb, 0.52 gpt Au, 76 gpt Ag on a grab sample at Pillar vein and 5.1%, 1.6% and 1.5 Cu along the Cobriza vein. Of 117 rock samples collected, 29 returned silver grades over 90 gpt, including 11 over 300 gpt and 6 over 500 gpt.

ON MINING

  • Pan American Silver Corp. announced preliminary operating results for the fourth quarter and full year 2018, including information from its operations in Mexico. At La Colorada in Zacatecas, 7.6 M Oz Ag, 4,400 Oz Au were produced during the year, at cash cost $2.02 per Ag Oz, whereas at Dolores in Chihuahua, 4.1 M Oz Ag and 136,600 Oz Au were produced at cash cost ($1.87) per Ag Oz. Pan American is planning to sustain 2,000 tonnes per day (tpd) throughput at La Colorada during 2019, and continue to explore and define the potential of the “significant skarn deposit discovered in 2018”.  At Dolores the company plans to ramp-up underground production rates to 1,500 tpd and sustain the 20 K tpd throughput rate to the heap leach from the pit.
  • Argonaut Gold Inc. informed on Q4 production and yearly results for 2018, including numbers from its Mexican operations. At El Castillo Complex, in Durango, 37,977 GEOs (Gold equivalent ounces) were produced during the quarter, 18,984 from El Castillo mine and 18,993 from the San Agustin mine. At La Colorada, in Sonora, 13,681 Oz Au were produced during the same period. For the year, El Castillo Complex produced 117,126 GEOs and La Colorada 47,991 GEOs. Argonaut plans to invest $50-$60 M in capital expenditures during 2019, with $15 M allocated to the expansion of crushing and leaching facilities at San Agustin to increase the rate of production from 20K tpd to 30 K tpd.
  • Gold Resource Corp. reported 2018 year-end and fourth quarter production results from their El Aguila mining operations in Oaxaca. During the year Gold Resource produced 26,838 Oz Au, 1.67 M Oz Ag, 1,652 tonnes Cu, 7,280 tonnes Pb and 19,808 tonnes Zn. During the fourth quarter 7,974 Oz Au and 330.6 K Oz Ag were produced.
  • Fresnillo PLC. released 4Q and full year 2018 results, with a consolidated production of 61.8 M Oz Ag and 923 K Oz Au for the year and 15.5 M Oz Ag, 232 K Oz Au for the quarter. Lead (53,181 tonnes) and Zinc (88,520 tonnes) production amounted to 19.9 M Oz AgEq. “The cumulative drilling for the year at our operating mines and exploration projects was 579,000 and 346,000 metres respectively. Resources and reserves (in the case of the operating mines) are presently in audit by SRK and the results of which will be disclosed in the first quarter of 2019 with our Preliminary results. Resources were increased at the Guanajuato and San Juan projects, while mapping identified new targets at the Fresnillo and Herradura districts, and a geophysical survey detected areas for follow up in the San Julián district. Further to this, and for the first time in the Company's history, drilling began in Chile. Exploration teams are working out of the Hermosillo, Chihuahua, Zacatecas, Toluca, Lima-Peru and Santiago de Chile offices in selected areas of favorable silver-gold belts in Mexico, Peru, Chile and Argentina”. (Note from editor: the mining community is waiting for Frisco to produce reports like this one).
  • Endeavour Silver Corp. announced its consolidated silver and gold production guidance for 2019, to be 4.4-5.2 M Oz Ag, 46.2-52.2 K Oz Au, or 8.1-9.4 M Oz AgEq. “Cash costs, net of gold by-product credits, are expected to be $8.50-$9.50 per oz of silver produced in 2019. Consolidated cash costs on a co-product basis are anticipated to be $11.50-$12.50 per oz silver and $900-$1,000 per oz gold”. The final dumps and tailings permit at Terronera is needed to make a development decision. The company plans to drill 24,500 m during 2019 in Guanaceví, Bolañitos, El Cubo, El Compas, Terronera, Parral and Guadalupe y Calvo.
  • Sierra Metals Inc. Disclosed Q4 and full year 2018 results, including figures from its Mexican operations. The Bolivar mine in Chihuahua processed (at 2,948 tonnes per day, or tpd) in the year 1 M tonnes of ore @ 0.95% Cu, 18 gpt Ag, 0.17 gpt Au, with recoveries of 79.9% Cu, 77.1% Ag, 68.5% Au, to produce 17.23 M Lb Cu, 452 K Oz Ag, 3,968 Oz Au. For the quarter, 272.6 K tonnes were processed (3,116 tpd) @ 0.94% Cu, 15 gpt Ag, 0.15 gpt Au, to produce 4.23 M Lb Cu, 128 K Oz Ag, 1,163 Oz Au. At Cusi, also in Chihuahua, 186.9 K tonnes were processed (534 tpd) during the year at a grade of 140 gpt Ag, 0.16 gpt Au, 0.36% Pb, 0.40% Zn, recovering 83.1% Ag, 39.1% Au, 79.9% Pb, 4.3% Zn, to produce 700 K Oz Ag, 372 Oz Au, 1.19 M Lb Pb, 937 K Lb Zn. During the last quarter Cusi processed 58.3 K tonnes (666 tpd) @ 111 gpt Ag, 0.16 gpt Au, 0.41% Pb, 0.49% Zn, to produce 171 K Oz Ag, 124 Oz Au, 421 K Lb Pb, no Zn.
  • Americas Silver Corp. announced production and operating results for 2018, including figures from its Mexican operations. At Cosalá, in Sinaloa, 544.5 K tonnes were milled @ 47 gpt Ag, to produce 448.1 K Oz Ag, 34.22 M Lb Pb, 12.86 M Lb Zn, or 4.16 M Oz AgEq at cash cost ($37.95) and AISC ($19.69).

ON FINANCING

  • Premier Gold Mines Ltd. Announced the signing of a definitive credit agreement with Investec Bank PLC, as administrative agent for the lenders of a US$50 M secured term credit facility. Premier also announced financing arrangements with OMF Fund II SO Ltd. and Orion Mine Finance Fund II LP for aggregate gross proceeds of US$18.2 M. (Mercedes, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Endeavour Silver Corp. updated its reserve and resource base for its mines and projects for 2018. Consolidated reserves and resources, including inferred resources for its seven units comprise 132 M Oz Ag and 1.042 M Oz Au, as displayed on the following table:
  • Premier Gold Mines Ltd. provided an update on its exploration programs, including information from its Mexican operations. At Mercedes in Sonora, positive exploration results include 18.3 m @ 38.3 gpt Au, 26 gpt Ag on the Aida vein, and 22.0 m @ 36.6 gpt Au, 171 gpt Ag at Rey de Oro. During the past year 280 brownfield and greenfield holes were completed representing 40,720 m of drilling.
  • Leagold Mining Corp. announced its intention to produce 200 K to 220 K Oz Au during 2019, at an AISC of $925 to $925-975 at Los Filos, in Guerrero. The proven and probable reserves at the property stand at 111.33 M tonnes @ 1.22 gpt Au, containing 4.363 M Oz Au, and 114 K Oz Au on the leach pad inventory.
  • Azure Minerals Ltd. Presented its quarterly report for the period ended on December 2018. The company highlighted the Scoping Study for the Oposura project in Sonora, with an EBITDA of A$237 M, pre-tax NPV of A$112 M, pre-tax IRR of 76%, average life of mine cash cost US$0.42 per Zn Lb and a pre-production CAPEX of A$69.9 M. At the Alacrán project in Sonora, Teck completed its Phase 2 drilling program comprising 10.537 m in 21 holes, with focus on testing porphyry copper potential at Cerro Alacrán, with assays pending. At Oso Negro, also in Sonora, sampling returned more high-grade mineralization, with the best sample returning 15.5 gpt Au, 1,935 gpt Ag, 5.9% Zn, 4.6% Pb. At Sara Alicia, also in Sonora, the company has been showing the property to potential partners or buyers.
  • Impact Silver Corp. hired a consultant to define extensions to the vein systems on its Zacaualpan property in Estado de Mexico. Work to date has defined on strike extensions to the San Ramon silver vein system through geological work and soil sampling, and better characterizing the potential for bulk mineable ore in the Santa Teresa area.
  • Excellon Resources Inc. released high-grade results from ongoing surface exploration at its Platosa mine in Durango. Highlighted intervals comprise 0.9 m @ 283 gpt Ag, 9.8% Pb, 0.3% Zn; 5.6 m @ 383 gpt Ag, 8.0% Pb, 0.2% Zn; 2.5 m @ 406 gpt Ag, 3.7% Pb, 0.2% Zn; 0.6 m @ 2,060 gpt Ag, 7.8% Pb, 9.1% Zn; 0 m @ 0.28 gpt Au, 968 gpt Ag, 9.4% Pb, 20.2% Zn; 4.8 m @ 1,127 gpt Ag, 8.4% Pb, 10.5% Zn.
  • Capstone Mining Corp. filed on SEDAR a NI-43-101 compliant report titled “NI 43-101 Technical Report on the Cozamin Mine, Zacatecas, Mexico”.

ON DEALS AND CORPORATE ISSUES

  • Prospero Silver Corp. announced the signature of the previously disclosed option agreement with Fortuna Silver Mines Inc. on the Pachuca SE project. “On December 10, 2018 Prospero announced that Fortuna Silver Mines Inc. ("Fortuna") exercised its right to be granted an option to acquire up to a 70-per-cent interest in the Pachuca Southeast project located close to the historic mining city of Pachuca in Hidalgo state, Mexico, by spending a total of $8-million (U.S.) in qualifying expenditures and completing a preliminary economic assessment, with a minimum spend of $1-million in the first year” (Pachuca SE, Hidalgo).

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

Read more…