Blog posts

During the 43^rd week of the year (October 23^rd to October 29^th, 2023), 22 companies working in Mexico posted news releases. One company reported exploration on one of its properties, five companies released Q3 2023 results and one announced new production from a recently acquired mine. One company informed on the closing of a financing round and one other the sale of more than 10% of its shares by another company.  Three companies released drilling results from their advanced projects, one on the doubling of processing capacity, one the results of an FS on its advanced property, one offered an update on construction of a new mine and another one presented a PEA on its advanced project. One company updated on the acquisition process of a property and four more on director’s appointments and results of their AGM’s. ON MEXICO ISSUES, The AIMMGM Convention in Acapulco, the biggest Mining event in Mexico held every two years, was cancelled after its opening, as the city received overnight the direct impact of a category five hurricane. ON EXPLORATION, In Sonora, Tocvan Ventures started the environmental permitting process at Pilar. ON MINING, Agnico Eagle Mines, Alamos Gold, MAG Silver, Fresnillo PLC and Newmont presented Q3 2023 production results. Impact Silver started production at the Plomosas mine in Chihuahua. ON FINANCING, Avino Silver informed Coeur Mining is to sell more than 10% of its stock. Regency Silver completed its financing round.  ON RESOURCES AND DEVELOPMENT, Vizsla Silver, Gatos Silver and Endeavour Silver reported drilling results from the Panuco, Cerro Los Gatos and Parral properties respectively. Luca Mining is expanding the Tahuehueto plant to double production. Discovery Silver presented results from a feasibility study on its Cordero project. Endeavour Silver provided a Q3 construction update on the Terronera project. GoGold Resources presented the results of a preliminary economic assessment (PEA) on its Los Ricos South project. ON DEALS AND CORPORATE ISSUES, Defiance Silver and Chesapeake Gold announced officer’s appointments. Excellon Resources rescheduled its AGM and Fabled Silver updated on the agreement to acquire the Mecatona project from Kootenay. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

• The AIMMGM (Asociación de Ingenieros Mineros, Metalurgistas y Geólogos de México) Convention in Acapulco was cancelled after the direct hit after the inauguration of category five hurricane Otis. The city, along with the coastal touristic resorts were devastated by the strong winds. On this link you can find a personal account of the events: https://gambusinoprospector.com/2023/10/27/acapulco-aimmgm-convention-and-otis-hurricane-part-1-arrival/

ON EXPLORATION

• Tocvan Ventures Corp. started the environmental permitting process of its Pilar project in Sonora. A detailed UAV LiDAR survey across Pilar and the newly acquired ground. The expansion area covers 21.7 square km, and the study is to provide high-resolution surface modelling.

ON MINING

• Impact Silver Corp. announced the first production by the company at the recently acquired Plomosas mine in Chihuahua. The company did “an extensive rehabilitation and upgrade program at the site, including inside the mine, at the mill and on all associated mobile equipment and infrastructure”. The first concentrate shipment was sent to the smelter. Impact is to seek 200 tpd processing in H1/2024.
• Agnico Eagle Mines Ltd. informed that during Q3 2023 “Minera de San Nicolás, which is jointly owned by the Company and Teck Resources Limited, continued to work on the feasibility study at San Nicolás in Zacatecas State, Mexico, and stakeholder engagement on the permitting process”. At Pinos Altos, in Chihuahua, 450 K tonnes were milled at 4,891 tpd, averaging 1.84 gpt Au, to produce 25,386 Oz Au at $1,581 per Oz Au and a total cash cost of $1,310 per Oz Au. At La India, in Sonora, 970 K tonnes were milled at 10,543 tpd, averaging 1.1 gpt Au, at a production cost of $1,271 per Oz Au and a total cash cost of $1,156 per Oz Au.
• Alamos Gold Inc. reported financial results for the third quarter 2023. At the Mulatos district in Sonora 53,900 Oz Au were produced at mine-site cash cost $898 per Oz Au and a mine site AISC of $1,045 per Oz Au. At La Yaqui Grande open pit, 918 K tonnes of ore were mined, 5.72 M tonnes of waste moved with a waste to ore ratio of 5.0, crushing 10,300 tpd, with 948.4 K tonnes staked averaging 1.50 gpt Au, with 45,722 Oz Au staked and an average recovery rate of 84%. At the Mulatos open pit, 80.9 K tonnes of ore were mined, 130.5 K tonnes of waste moved with a waste to ore ratio of 1.61, crushing 11,800 tonnes per day, stacking 1.08 M tonnes averaging 1.55 gpt Au, to stake 53,923 Oz Au with an average recovery rate of 29%. “Production is expected to decrease in the fourth quarter reflecting the depletion of the Mulatos pit and a decrease in grades at La Yaqui Grande”.
• MAG Silver Corp. reported Q3 2023 production from Juanicipio (56%/44% Fresnillo/MAG) in Zacatecas. “Ramp up of the Juanicipio plant continued to be the focus during the quarter with the plant reaching its target milling rate of 4,000 tonnes per day (“tpd”) in September”. During the period 322.2 K tonnes were processes, grading 1.32 gpt Au, 523 gpt Ag, to produce 9,444 Oz Au, 4.78 M Oz Ag.
• Fresnillo Silver PLC. reported Q3 2023 production results. During the period 13.4 M OZ were produced, 0.67 M Oz from silverstream for a total of 14.1 M Oz Ag, 132,627 Oz Au, 14,575 tonnes Pb, 29,073 tonnes Zn, from the Fresnillo, Saucito, Pyrites Plant, Ciénega, San Julian Veins, San Julian DOB, Herradura, Nochebuena and Juanicipio (56%/44% Fresnillo/MAG Silver).
• Newmont Corp. announced third quarter 2023 results, with some comments on its Mexico operations. At Peñasquito, in Zacatecas, operations were suspended by a strike that was resolved after the quarter’s end, therefore there was no Au, Ag, Pb, Zn production.

ON FINANCING

• Avino Silver & Gold Mines Ltd. announced that Coeur Mining Inc. will offer for sale up to 14 M common shares of Avino currently held by Coeur, for gross proceeds to Coeur of approximately US$7 M. Avino will not receive any proceeds form the secondary offering (Avino, Durango).
• Regency Silver Corp. completed the final tranche of a previously announced non-brokered private placement, raising an upsized total of CAD$1.75 M (Dios Padre, Sonora).

ON RESOURCES AND DEVELOPMENT

• Vizsla Silver Corp. reported results from five new drill holes at its Panuco project in Sinaloa. Recent drilling intercepted the new El Molino vein, which is 250 m from the Copala resource area, and was discovered by a hole planned to condemn the area. Highlighted true width intercepts comprise 1.65 m @ 8.37 gpt Au, 1,552 gpt Ag, 0.5% Pb, 1.2% Zn; 1.10 m @ 0.62 gpt Au, 188 gpt Ag, 0.8% Pb, 2.5% Zn; 1.7 m @ 2.25 gpt Au, 1,000 gpt Ag, 0.3% Pb, 0.5% Zn; 4.15 m @ 0.96 gpt Au, 179 gpt Ag, 0.2% Pb, 4.4% Zn. “El Molino consists of alternating bands of quartz and sulfides (sphalerite, galena and acanthite), and shows similar vein textures to those observed at Napoleon and La Luisa veins”.
• Gatos Silver Inc. updated on exploration at the Los Gatos district in Chihuahua. Resource definition drilling on the SE Deeps zone of the Cerro Los Gatos deposit returned good results highlighting true width intervals of 2.9 m @ 0.46 gpt Au, 550 gpt Ag, 0.30% Cu, 13.7% Pb, 24.5% Zn; 5.8 m @ 0.38 gpt Au, 44 gpt Ag, 1.13% Cu, 2.7% Pb, 2.5% Zn; 2.8 m @ 0.19 gpt Au, 140 gpt Ag, 0.47% Cu, 5.6% Pb, 17.1% Zn; 2.8 m @ 457 gpt Ag, 2.13% Cu, 2.8% Pb, 0.9% Zn; 7.6 m @ 0.58 gpt Au, 148 gpt Ag, 0.73% Cu, 1.9% Pb, 1.6% Zn; 1.22 gpt Au, 207 gpt Ag, 0.74% Cu, 10.1% Pb, 3.4% Zn. On district exploration, two holes were completed at the Santa Ana target and drilling started at Portigueño, detailed mapping and rock geochemistry were completed at the San Luis, El Valle and Lince areas and the first magneto-telluric survey was completed on an area of the Rio conchos basin, near Cerro Los Gatos.
• Endeavour Silver Corp. reported drill results from last year’s (September 2022 to September 2023) drill program at its Parral project, in Chihuahua. Highlighted true width intercepts comprise 2.33 m @ 0.11 gpt Au, 508 gpt Ag, 0.4% Pb, 1.6% Zn (including 0.43 m @ 0.13 gpt Au, 1,405 gpt Ag, 0.4% Pb, 2.2% Zn); 2.50 m @ 0.28 gpt Au, 336 gpt Ag, 1.0% Pb, 2.5% Zn (including 0.29 m @ 0.40 gpt Au, 1,760 gpt Ag, 0.7% Pb, 4.0% Zn); 9.1 m @ 0.24 gpt Au, 74 gpt Ag, 0.8% Pb, 2.6% Zn); 3.89 m @ 0.30 gpt Au, 198 gpt Ag, 2.0% Pb, 7.3% Zn. Drilling has found mineralization in the Sierra Plata, El Verde and San Joaquín areas “and the extension of San Patricio vein system. All drilling was outside of the published mineral resource estimate and results are expected to grow the resource estimate”.
• Luca Mining Corp. announced the expansion project to double throughput at its Tahuehueto mine in Durango is progressing according to plan. “The objective is to achieve an installed capacity of 1,000 tpd by year-end and announce commercial production in first quarter of 2024”. A second ball mill is now on site, and once commissioned the milling capacity will be of 1,250 tpd, while the flotation and concentrate filtration circuits already installed can handle 1,000 tpd. A second 500 tpd tailings filter press is soon to be transported.
• Discovery Silver Corp. presented results from its feasibility study (FS) metallurgical test program from its Cordero project in Chihuahua. Highlights from the report include: Increase Ag recoveries of up to 7% to the precious metals concentrate, significant reduction in reagent consumption, excellent metallurgical performance for oxide-sulfide blending of up to 15% oxides, “Primary grind sensitivity confirmed a coarse grind size of 200 micron passing p80 is the optimal grind size” and the need of a smaller primary crusher.
• Endeavour Silver Corp. provided a Q3 construction update for its Terronera project in Jalisco. Overall construction progress is 38% complete with more than $95 M spent to date. “The project remains on track and on budget for initial production in Q4 2024”. Total engineering progress is 97% complete, site road access is now established, all permanent camp dormitory units to accommodate 550 personnel have been installed. Mine development is to advance on four fronts (Portal 1 to 4), “Concrete work and rebar installation continued in the SAG and ball mill grinding, coarse ore stockpile and flotation areas, and concrete work began for the primary crusher” and most long-lead major equipment is to be received before year’s end.
• GoGold Resources Inc. filed a NI 43-101 compliant preliminary economic assessment (PEA) for its Los Ricos South project in Jalisco. The base case scenario envisages US$23.75 per Oz Ag, US$1,850 per Oz Au, an after-tax net present value (NPV 5%) of US$458 M, with an after tax IRR of 37%, an 11-year mine life to produce 47 M Oz Ag, 493 K Oz Au (or 88 M Oz AgEq). An initial capital cost of $148 M and sustaining costs of $72 M over the mine life. The average LOM production cash cost is $8.15 per Oz Ag and an AISC of $9.02 per Oz Ag, to produce 8 M Oz AgEq per year with half of the production from long hole underground mining and half from open pit mining.

ON DEALS AND CORPORATE ISSUES

• Defiance Silver Corp. announced the appointment of George Cavey to its board of directors, replacing Dunham L. Craig (Zacatecas project, Zacatecas).
• Chesapeake Gold Corp. announced the appointment of Jean-Paul Tsotsos as interim Chief Executive Officer (Metates, Durango).
• Excellon Resources Inc. rescheduled its annual and special meeting to November 23, 2023 (Evolución, Durango).
• Fabled Silver Gold Corp. updated on the agreement with Kootenay Silver Inc. to acquire the Mecatona project, in Chihuahua. “The Company is still attempting to secure the funding required in order to complete the Proposed Transaction. The Company will provide a further update on the closing of the Proposed Transaction in due course”. The company received a six-month extension by the British Columbia Register of Companies and the Exchange.
• Orogen Royalties Inc. re-elected all of its directors on the annual general meeting (Ermitaño, Sonora).

ON SOCIAL RESPONSIBILITY

• No relevant news.

On the image below: Bleached and goethite-stained rocks in the Sonoran Desert. Picture by Jorge Cirett.