During the 49th week of the year (December 4th to December 10th, 2023), companies working in Mexico posted 18 news releases. Two companies reported exploration advances on their properties and one released its Q3 2023 report. One company extended the expiry dates of warrants, one company declared dividends, one more closed a gold loan credit facility, while one other arranged a funding package. One company announced a private placement and one more a debt settlement for shares. Two companies released drilling results from their advanced properties. Three companies announced executive appointments and one completed the sale of a property. ON MEXICO ISSUES, no relevant news. ON EXPLORATION, in Sonora, Prismo Metals released drilling results from its Los Pavitos project. In Chihuahua, Kootenay Silver announced drill results from the Columba project. ON MINING, Luca Mining released its Q3 2023 quarterly report. ON FINANCING, Silver Wolf is to extend warrant expiry dates. Argonaut Gold announced a financing round worth C$80 …. to fund mines out from Mexico. Guanajuato Silver closed a US$7.5 M gold loan credit facility, Luca Mining arranged a C$3.6 M funding package. Impact Silver is to raise C$3.5 M. Sailfish declared a quarterly dividend. GR Silver settled a $100 K debt with shares. ON RESOURCES AND DEVELOPMENT, Silver Storm released results from drilling at La Parrilla mine complex in Durango. Pan American Silver released drilling results from La Colorada mine and the adjacent La Colorada Skarn project in Zacatecas. ON DEALS AND CORPORATE ISSUES, Fresnillo plc, Heliostar Metals and Endeavour Silver announced executive appointments. Golden Minerals completed the sale of the Santa Maria property to a Mexican enterprise. ON SOCIAL RESPONSIBILITY, Capstone Copper published its 2022 sustainability report.
ON MEXICO ISSUES
- No Relevant News
ON EXPLORATION
- Prismo Metals Inc. announced results from the second group of drill holes completed at the 5,300 ha Los Pavitos project in Sonora. Highlighted true width intervals comprise 2.6 m @ 2.33 gpt Au, 88 gpt Ag (including 0.8 m @ 3.58 gpt Au); 3.7 m @ 0.51 gpt Au, 106 gpt Ag; 1.8 m @ 0.31 gpt Au, 6 gpt Ag; 1.3 m @ 1.20 gpt Au, 8 gpt Ag; 23.4 m @ 0.16 gpt Au, 2 gpt Ag; 5.7 m @ 0.19 gpt Au, 6 gpt Ag, 0.5% Zn; 6.4 m @ 0.18 gpt Au, 7 gpt Ag (including 2.6 m @ 0.23 gpt Au, 16 gpt Ag, 0.2% Pb, 0.1% Zn); 2.6 m @ 2.33 gpt Au, 88 gpt Ag, 0.2% Pb, 0.2% Zn; 2.3 m @ 0.34 gpt Au, 4 gpt Ag; 4.8 m @ 0.11 gpt Au, 2 gpt Ag; 3.5 m @ 0.15 gpt Au. Las Auras and Southeast Santa Cruz add to the La Hedionda and La Cruz areas with interesting Au mineralization intersected in this drill program.
- Kootenay Silver Inc. released results from additional holes of its current drilling program at Columba, in Chihuahua. The current program has been completed with 3,052.8 m in 12 holes aimed to extend the known mineralization in the “D Vein” target area. Highlighted core length intervals comprise 121.0 m @ 60 gpt Ag, 0.1% Zn (including 2.88 m @ 224 gpt Ag, 0.2% Pb, 0.5% Zn); 10.63 m @ 108 gpt Ag; 5.10 m @ 54 gpt Ag; 22.0 m @ 174 gpt Ag (including 6.0 m @ 435 gpt Ag, 0.1% Pb, 0.2% Zn and 3.0 m @ 544 gpt Ag, 0.1% Pb, 0.2% Zn).
ON MINING
- Luca Mining Corp. announced its financial and operating results for the third quarter 2023. At Campo Morado, in Guerrero, 128.3 K tonnes were processed, averaging 2.51% Zn, 0.77% Cu, 0.74% Pb, 1.62 gpt Au, 100.9 gpt Ag, recovering 72.6% Zn, 47.8% Cu, 28% Au, 36.6% Ag, to produce 5,094 tonnes of Zn concentrate @ 45.9% Zn, 4.08 gpt Au, 450 gpt Ag and a bulk Cu-Pb concentrate averaging 14.8% Cu, 11.72 gpt Au, 753 gpt Ag. At Tahuehueto, in Durango, 19.4 K tonnes were processed, averaging 3.27% Zn, 1.34% Pb, 3.05 gpt Au, 32.8 gpt Ag, recovering 64.1% Zn, 79.4% Pb, 82.3% Au, 82.7% Ag, to produce 782 tonnes of Zn concentrate averaging 52.2% Zn, 8.70 gpt Au, 117.1 gpt Ag and 487 tonnes of Pb concentrate averaging 38.4% Pb, 79.95 gpt Au, 794.1 gpt Ag. At Tahuehueto, the plant capacity is to ramp up to commercial production at 1,000 tpd in early 2024, and is expected to produce 40 K Oz AuEq per year. At Campo Morado an optimization program with the cooperation of Ausenco is expected to increase revenue by 40% in 2024.
ON FINANCING
- Silver Wolf Exploration Ltd. intends to extend the expiry dates for the 4 M warrants granted by Silver Wolf in June 2022. The warrants that were to expire in December 16, 2023 are now set to expire in December 2024, as approved by the board of directors (Ana Maria, Durango).
- Argonaut Gold Inc. entered into an agreement with a syndicate of underwriters co-led by Cormark Securities Inc., BMO Capital Markets and Scotiabank pursuant to which the Co-lead underwriters have agreed to purchase for resale on a “bought deal” basis shares for gross proceeds of C$80 M. “The net proceeds of the Offering will be used to fund development and optimization of the Company's Magino and Florida Canyon Mines (Not in Mexico) and for general working capital purposes” (La Colorada, Sonora).
- Guanajuato Silver Company Ltd. closed a US$7.5 M gold loan credit facility financing with Ocean Partners UK Ltd. The unsecured loan facility is for a 36-month term repayable on 30 monthly installments of 191 Oz Au following a 6-month grace period. Approximately US$4.6 M will be used to pay an outstanding loan due to Ocean Partners, “the remainder of the funds will be used for capex initiatives at the Company’s El Cubo Mines Complex and Valenciana Mines Complex, as well as for general working capital purposes” El Cubo and Valenciana, Guanajuato).
- Luca Mining Corp. arranged a funding package for the mine optimization program at Campo Morado, in Guerrero. Luca has secured the C$3.6 M budgeted for the program, which includes mine and mill equipment, process control and operator training. The total funding package includes a C$2 M private placement and a US$2.5 M debt facility. Furthermore, the Trafigura debt converts a US$5.8 M loan to a non-interest bearing convertible loan and a C$11 M+ debt with Latapi is settled writing off C$3M+ and converting the remaining C$7.9 M to equity at C$0.45 per share. The optimization plan envisages over 20% and 5% improvements in Cu and Zinc respectively to produce clean Cu, Zn and Pb concentrates with higher grades.
- Impact Silver Corp. announced a non-brokered private placement financing to raise gross proceeds of up to C$2.7 M, which later on the week was upsized to C$3.5 M (Plomosas, Chihuahua).
- Sailfish Royalty Corp. declared the company’s fourth quarterly dividend for 2023, in the amount of US$0.0125 per common share (Gavilanes, Durango).
- GR Silver Mining Ltd. settled aggregate debt of $100.8 K with arm’s length and non-arm’s length creditors, in consideration for 1.34 M shares are to be issued, with a hold period of four months (Plomosas, Sinaloa).
ON RESOURCES AND DEVELOPMENT
- Silver Storm Mining Ltd. announced drill results from La Parrilla mine complex, in Durango. Core length highlighted intervals comprise 0.68 m @ 213 gpt Ag, 0.12 gpt Au, 3.4% Pb, 7.1% Zn; 1.0 m @ 259 gpt Ag, 0.17 gpt Au, 5.6% Pb, 2.8% Zn; 14.80 m @ 259 gpt Ag, 0.17 gpt Au, 5.6% Pb, 2.8% Zn (Including 7.14 m @ 310 gpt Ag, 0.15 gpt Au, 6.9% Pb, 5.2% Zn and 4.36 m @ 360 gpt Ag, 0.31 gpt Au, 7.2% Pb, 1.0% Zn); 1.11 m @ 594 gpt Ag, 0.17 gpt Au, 6.8% Pb, 0.4% Zn; 0.45 m @ 238 gpt Ag, 0.11 gpt Au, 1.1% Pb, 0.1% Zn. “The Quebradillas Mine continues to deliver high-grade silver results within immediate proximity to the existing underground development and services”.
- Pan American Silver Corp. released drill results from some its main properties, including intervals from La Colorada mine and La Colorada Skarn in Zacatecas. At La Colorada mine drilling is defining the east extension of the NC2, Veta 3, Amolillo veins and minor splays. Highlighted true width intervals comprise 1.33 m @ 1,455 gpt Ag, 4.4% Pb, 1.3% Zn; 1.05 m @ 2,804 gpt Ag, 1.6% Pb, 1.3% Zn; 1.33 m @ 4,067 gpt Ag, 0.8% Pb, 1.8% Zn; 2.58 m @ 1,171 gpt Ag, 1.0% Pb, 0.8% Zn; 1.74 m @ 320 gpt Ag, 5.9% Pb, 15.6% Zn; 2.09 m @ 675 gpt Ag, 1.9% Pb, 5.8% Zn; 1.25 m @ 349 gpt Ag, 3.0% Pb, 7.6% Zn. At La Colorada Skarn, adjacent to La Colorada mine, exploration drilling continued to define and expand the current resource hosted in three distinct orebodies. Highlighted core length intervals comprise 328.45 m @ 71 gpt Ag, 2.6% Pb, 3.8% Zn; 332.40 m @ 144 gpt Ag, 4.1% Pb, 4.8% Zn (including 89.85 m @ 461 gpt Ag, 10.6% Pb, 11.0% Zn); 439.5 m @ 72 gpt Ag, 2.1% Pb, 3.3% Zn; 273.95 m @ 82 gpt Ag, 2.8% Pb, 3.3% Zn; 360.05 m @ 53 gpt Ag, 3.7% Pb, 3.4% Zn; 430.05 m @ 28 gpt Ag, 1.2% Pb, 4.0% Zn.
ON DEALS AND CORPORATE ISSUES
- Fresnillo plc. created two executive roles for its operations and projects. As COO Central Tomás Iturriaga is to manage Fresnillo, Saucito, Juanicipio, Orisyvo and Guanajuato. As COO of the Northern Region Daniel Diez is to oversee Herradura, Ciénega, San Julián, Tajitos Rodeo and Capricornio.
- Heliostar Metals Ltd. appointed Mr. Gregg Bush as chief operating officer (COO) for the company. ““Attracting a mine builder with the wealth and depth of experience as Gregg is a significant step forward for Heliostar” (Ana Paula, Guerrero).
- Endeavour Silver Corp. announced the appointment of Elizabeth Senez as chief financial officer (CFO), effective January 1, 2024 (Terronera, Jalisco).
- Golden Minerals Co. completed the previously announced sale of its interests in the Santa Maria property, in Chihuahua, to Transformaciones y Servicios Metalurgicos S.A. de C.V. (TSM). Upon closing Golden received US$1.5 M plus US$0.24 M in value-add tax, with the latter to be used to offset its current VAT receivable. In addition, TSM granted Golden 1.5% NSR, capped at US$1 M. TSM may purchase from Golden the right to receive the NSR for US$0.5 M at any time prior to the beginning of commercial production at Santa Maria.
ON SOCIAL RESPONSIBILITY
- Capstone Copper Corp. published its 2022 sustainability report. “The report has been prepared in accordance with the Global Reporting Initiative (“GRI”) Standards and the SASB Metals and Mining Sustainability Accounting Standard.”
On the image below: Silicified ridge on a project of the Sonoran Desert. Picture by Jorge Cirett.
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