The Mining and Exploration News in Mexico: Highlights on the First Week of November, 2024

By Miguel A Heredia

During the 45th week of the year (November 4th to November 10th 2024), at least 29 press releases were announced by companies working in Mexico, and 2 news published by the media, with fourteen communicating production and financial results, ten disclosing deals and corporate issues, four announcing financing rounds, two commenting on Mexican issues, and one reporting resources and development of their properties. ?ON MEXICO ISSUES, The Mexican Mining Chamber (Camimex) announced that it foresees a decline in mining investments in Mexico to USD $3.8 billion in 2025, which would imply its lowest level in the last nine years. ON EXPLORATION, no relevant news. ?ON MINING, Aura Minerals reported Q3, 2024 production results and provided 2024 production guidance (Aranzazu mine, Zacatecas). Endeavour announced results from their Mexican operations for the three and nine months ended September 30, 2024. Alamos Gold reported Q3, 2024 production and financial results from its Mulatos Mining District, Sonora. Fortuna Mining announced Q3, 2024 financial results from its San Jose mine, Oaxaca. Pan America released Q3, 2024 production results from its La Colorada mine in Zacatecas-Durango, and from its Dolores mine in Chihuahua. Sierra Metals reported Q3, 2024 production results from its Bolivar mine, Chihuahua. Gold Resource announced Q3, 2024 production and financial results from its Don David Gold mine, Oaxaca. Torex reported Q3, 2024 production and financial results from its El Limon-Guajes Mine Complex, Guerrero. Gold Royalty announced Q3, 2024 operating and financial results (Cozamin mine, Zacatecas). Americas Gold and Silver released Q3, 2024 production results from its Cosala mine, Sinaloa. First Majestic announced Q3, 2024 production results from their Mexican operations. Equinox Gold reported Q3, 2024 consolidated production and financial results (Los Filos mine, Guerrero). Sandstorm Gold Royalty announced Q3, 2024 production and financial results (Mercedes mine, Sonora). ?Altius Minerals reported Q3, 2024 attributable royalty revenue (Cuale project, Jalisco). ON FINANCING, Heliostar reported the closing of two previously announced debt facilities for aggregate gross proceeds of $10M (Ana Paula project, Guerrero).? Luca recommenced its principal repayments on its terms loan with Trafigura Mexico S.A.de C.V. (Tahuehueto mine, Durango).? ON RESOURCES AND DEVELOPMENT, Teck provided an update on its San Nicolas project in Zacatecas. ?ON DEALS AND CORPORATE ISSUES, Aura Minerals approved an amendment to its dividend policy to declare and pay dividends on a quarterly basis (Aranzazu mine, Zacatecas). Chesapeake granted stock options to officers of the company (Metates project, Durango).? Hecla announced the appointments of its new President and CEO and its new Vice President and Chief Operating Officer (San Sebastian property, Durango). Silver Spruce reported results from its annual general meeting of shareholders (Pino de Plata project, Chihuahua). Vizsla Silver received firstly a conditional approval, which then turned into a final approval to graduate from the TSX Venture Exchange and list its common shares on the Toronto Stock Exchange (Panuco project, Sinaloa). Luca Mining announced the resignation of its VP Technical (Tahuehueto mine, Durango). ?Florida Canyon communicated the completion of its previously announced sale of its Mexican Business Unit to Heliostar Metals.? Minaurum acquired a 100% interest in five-royalty free claims covering the core position of its Aurifero project in Sonora. Almadex Minerals announced on November 7, 2024, the acquisition of 14,174,056 common shares of Azucar Minerals Ltd (San Pedro project, Jalisco). ON SOCIAL RESPONSIBILITY, ?no relevant news.

ON MEXICO ISSUE

·???????? The Mexican Mining Chamber (Camimex) announced that it foresees a decline in mining investments in Mexico to USD $3.8 billion in 2025, which would imply its lowest level in the last nine years. Pedro Rivero, president of Camimex, explained that the main factor in this trend is that no new mining concession has been granted since the beginning of the last federal government administration to date. Camimex also predicted that after receiving USD $543M in mining exploration in 2023, the expected arrivals in this area are estimated at USD $500M for 2024 and USD $400M for 2025.

·???????? An armed group in Zacatecas, stole six gondolas loaded with 240 tonnes of mineral concentrates that were towed by three trucks that had left the Pe?asquito mine, dedicated to the extraction of gold and silver in the country. The mine located in Zacatecas, owned by the American transnational Newmont Corporation, is the largest gold mine in Mexico and the second in terms of silver production. The company, which operates in the municipality of Mazapil, in Zacatecas, explained that local and federal authorities deployed an operation in which they managed to recover part of the stolen goods; however, the National Guard explained that "apparently there were other tractor-trailers that were able to hook the remaining 6 gondolas and remove them from the area." “The security forces deployed an intense operation on Saturday in the areas of the Pe?asquito and Camino mines to try to locate the gondolas or the stolen material, but it was not completely located,” said the National Guard.

ON EXPLORATION

·???????? No relevant news.

ON MINING

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·???????? Aura Minerals Inc., reported Q3, 2024 results and provided a 2024 production guidance. The company produced 24,486 Oz AuEq in Q3, 2024 from its Aranzazu mine in Zacatecas. It also provided 2024 production guidance and announced that it expects to produce between 94K-108K Oz AuEq at cash and AISC of USD $826-$1,109 and USD $1,089-$1,331 per Oz AuEq produce respectively.

·???????? Endeavour Silver Corp., Endeavour announced results from their Mexican operations for the three and nine months ended September 30, 2024 (all amounts are in US dollars). At Guanacevi, Durango, the company processed 67,094 tonnes in Q3, 2024, to produce 766.6K Oz Ag payable (995.15K Oz AgEq) at cash, AISC and total production costs of $19.59, $30.83, and $24.68 per Oz Ag respectively, while in the nine months ended September 30, 2024 it processed 294,995 tonnes to produce 3.29M Oz Ag payable (4.2M Oz AgEq) at cash, AISC, and total production costs of $17.24, $24.96, and $22 per Oz Ag respectively. At Bola?itos, Guanajuato, the company processed 107,971 tonnes in Q3, 2024, to produce 100.7K Oz Ag payable (622.8K Oz AgEq) at cash, AISC, and total production costs of ($51.38), ($14.98), and ($27.25) per Oz Ag respectively, while in the nine months ended September 30, 2024 it processed 320,853 tonnes to produce 330.6K Oz Ag payable (1.85M Oz AgEq) at cash, AISC,? and total production costs of ($30.97), $3.77 and ($6.34) per Oz Ag respectively. Consolidated results are shown in the table below:

·???????? Alamos Gold Inc., reported Q3, 2024 production and financial results from its Mulatos Mining District, Sonora (all amounts expressed in US dollars). The company produced 50,500 Oz Au at Mulatos Mining District, consisting of 12,600 Oz Au from residual leaching at Mulatos mine, and 37,900 Oz Au from La Yaqui Grande open pit after processing 978,139 tonnes of 1.36 g/t Au with a metallurgical recovery of 90%. Alamos Gold sold 48,793 Oz Au in Q3, 2024, with a cost of sales of $1,398 per Oz Au sold, and cash and AISC of $937 and $1,002 per Oz Au sold respectively. The company reported operating revenues of $122.8M; costs of sales of $68.2M; earnings from operations of $51.1M; cash provided by operating activities of $70M; mine-site free cash flow of $66.9M; and capital expenditures of $3.1M. Alamos also provided a 2024 production guidance and estimates to produce between 185K-195K Oz Au, at total cash and AISC of $$925-$975and $1,000-$1,050 per Oz Au respectively, with a total sustaining and growth capital of $5-10M; and total capital expenditures and capitalized expenditures of $14-$19M.

·???????? Fortuna Mining Corp., announced Q3, 2024 production results from its San Jose Mine, Oaxaca. The company processed 188,212 tonnes with 99 g/t Ag and 0.74 g/t Au with metallurgical recoveries of 86% and 85% respectively to produce 510.7K Oz Ag and 3,771 Oz Au. Fortuna sold 533.8K Oz Ag and 3,941 Oz Au at cash and AISC of USD $29.40 and USD $ 32.65 per Oz AgEq respectively at realized prices of USD $29.45 per Oz Au and USD $2,484 per Oz Ag.

·???????? Pan American Silver Corp., released Q3, 2024 production results from its La Colorada mine in Zacatecas-Durango, and from its Dolores mine in Chihuahua. At La Colorada mine, the company produced 1.3M Oz Ag and 0.9K Oz Au at cash and AISC of USD $19.59 and USD $22.25 per Oz Ag respectively. At Dolores mine, Chihuahua, it produced 442K Oz Ag and 18.4K Oz Au at cash and AISC of USD $1,296 and USD $1,262 per Oz Au respectively.

·???????? Sierra Metals Inc., reported Q3, 2024 production results from its Bolivar mine, Chihuahua (all amounts are expressed in USD dollars). It processed 401,731 tonnes to produce 9.67M Lb CuEq at cash and AISC of $2.42 and $3.23 per Lb CuEq respectively. Sierra Metals reported total cash cost of $16.88M; total cash cost of sales of $23.41M; and sustaining capital expenditures of $7.76M. The company also provided its 2024 production guidance and expects to produce between 23.0-27.6M Lb Cu, 650K-750K Oz Ag, and 8K-9.2K Oz Au at cash and AISC of $2.56-$2.72 and $3.29-$3.36 per Lb CuEq respectively.

·???????? Gold Resource Corporation announced Q3, 2024 production and financial results from its Don David Gold mine, Oaxaca. The company milled 83,690 tonnes of 0.54 g/t Au, 83 g/t Ag, 0.19% Cu, 1% Pb, and 2.6% Zn to produce and sold 1,357 Oz Au, 181.4K Oz Ag, 219.5K Lb Cu, 1.29M Lb Pb, and 3.9M Lb Zn (3,526 Oz AuEq), at average sale metal prices realized of $2,561/Oz Au, $30.61/Oz Ag, $8,832/tonne Cu, ?$2,065/tonne Pb, and $2,854/tonne Zn. Total cash and AISC after co-product credits were $3,560 and $5,073 per Oz AuEq. Gold Resource also reported total sales of $13.27M; production costs of $17.2M; operating cash flows of ($ 3.37M), net loss of $10.5M or $0.11 per share; working capital of $6.1M; and cash balance of $1.4M as September 30, 2024.

·???????? Torex Gold Resources Inc., reported Q3, 2024 production and financial results from its El Limon-Guajes Mine Complex, Guerrero (all amounts expressed in US dollars). The company produced 119,412 Oz Au and sold 122,130 Oz Au at cash and AISC of $926 and $1,101 per Oz Au respectively at an average realized price of $2,313 per Oz Au, or 122,525 Oz AuEq produced and 125,414 Oz AuEq sold at cash and AISC of $969 and $1.139 per Oz AuEq respectively. The company reported revenue of $313.7M; cost of sales of $170.1M; earnings from mine operations of $143.6M; net income of $29.2M or $0.34 per both basic and diluted share; adjusted net earnings of $65.5M or $0.76 per basic share and $0.75 per diluted share; EBITDA of $155.3M; adjusted EBIDTA of $152.4M; net cash generated from operating activities of $149.5M; net cash generated from operating activities before changes in non-cash operating working capital of $137.6M; cash and cash equivalents of $114.5M; and available liquidity of $346.6M.

·???????? Gold Royalty Corp., announced Q3, 2024 operating and financial results.? The company owns 1% NSR royalty over the southeastern portion of the property at Cozamine mine, Zacatecas and reported that the Q3, 2024 production was 2% higher than the Q3, 2023 due to higher mill throughput driven by mine sequencing. Grades and recoveries were consistent with the same period last year.

·???????? Americas Gold and Silver Corporation released Q3, 2024 production results from its Cosala mine, Sinaloa (all amounts expressed in US dollars). The company produced 192K Oz Ag, 8.4M Lb Zn, and 2.6M Lb Pb at cash and AISC of $7.12 and $11.12 per Oz Ag respectively. Cash cost of sales reported by Americas Gold and Silver was $8.36M.

·???????? First Majestic Silver Corp., announced Q3, 2024 production and financial results from their Mexican operations (all amounts are in US dollars).? Figures of their three mines are shown in the table below:

·???????? Equinox Gold Corp., reported Q3, 2024 consolidated production and financial results. The company produced 173,983 Oz Au and sold 173,973 Oz Au at an average realized gold price of USD $2,461 per Oz and cash and AISC of USD $1,720 and USD $1,994 per Oz Au respectively (Los Filos mine, Guerrero).

·???????? Sandstorm Gold Royalties announced Q3, 2024 production and financial results and reported 17,359 attributable Oz AuEq (Mercedes mine, Sonora).

·???????? Altius Minerals Corporation reported Q3, 2024 attributable royalty revenue of USD $16.6M and adjusted earnings of USD $2.6M (Cuale project, Jalisco).

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ON FINANCING

·???????? Heliostar Metals Ltd., reported the closing of two previously announced debt facilities for aggregate gross proceeds of $10M to support its acquisition of assets from Florida Canyon Gold Inc. ?The Company expects to complete the acquisition on November 6, 2024 (Ana Paula project, Guerrero).

·???????? Luca Mining Corp., recommenced its principal repayments on its terms loan with Trafigura Mexico S.A.de C.V., and is on track to eliminate its term debt in 2026. Luca has outstanding loans with Trafigura totaling?USD $18.1M. This total includes a non-interest-bearing convertible loan of?USD $5.8M?due in?January 2027. The remaining?USD $12.3M in term debt is scheduled for repayment by mid-2026, offering the company added financial flexibility (Tahuehueto mine, Durango).

ON RESOURCES AND DEVELOPMENT

·???????? Teck Resources Limited provided an update on its San Nicolas project in Zacatecas, which is in partnership with Agnico Eagle Mines Limited (Teck 50% / Agnico 50%). San Nicolas is a low capital cost, low-complexity copper-zinc project, with an estimated production of 63K tonnes per year (tpa) copper and 147 k tpa zinc over the first five years. Feasibility study and execution strategy progressing with potential sanction decision in H2 2025 (Teck estimated funding requirement USD $0.3-0.5 billion).

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ON DEALS AND CORPORATE ISSUES

·???????? Aura Minerals Inc., approved an amendment to its dividend policy to declare and pay dividends on a quarterly basis. The company paid a dividend of USD $0.24 per common share (approximately USD $17.4M in total) based on Aura′s financial results for the three months ending September 30, 2024 (Aranzazu mine, Zacatecas).

·???????? Chesapeake Gold Corp., granted stock options to officers of the company to purchase an aggregate of 65,000 common shares of the company at an exercise price of CAD $1.80 per share for a five-year term expiring November 5, 2029 (Metates project, Durango).

·???????? Hecla Mining Company announced the appointments of its new President and CEO and its new Vice President and Chief Operating Officer, both effective November 7, 2024 (San Sebastian property, Durango).

·???????? Silver Spruce Resources Inc., reported results from its annual general meeting of shareholders (Pino de Plata project, Chihuahua).

·???????? Vizsla Silver Corp., received firstly a conditional approval, which then turned into a final approval to graduate from the TSX Venture Exchange (TSXV) and list its common shares on the Toronto Stock Exchange (TSX). Upon receipt of the final TSX approval, the common Shares will be delisted from the TSXV and commence trading on the TSX under the symbol “VZLA”. The common shares will continue to trade on the NYSE American under the symbol “VZLA” (Panuco project, Sinaloa).

·???????? Luca Mining Corp., announced the resignation of its VP Technical to pursue a new career opportunity (Tahuehueto mine, Durango).

·???????? Florida Canyon Gold Inc., communicated the completion of its previously announced sale of its interests in the San Agustin mine, Durango, El Castillo mine, Durango, La Colorada mine, Sonora, Cerro del Gallo project, Guanajuato, and San Antonio project, Baja California Sur to Heliostar Metals Ltd., for cash consideration of USD $5M and an additional USD $5M in cash generated from operating cash flow after July 16, 2024. As a result of the transaction, Florida Canyon no longer holds assets in Mexico, and Heliostar has assumed all responsibilities for the Mexican Business Unit, including reclamation.

·???????? Minaurum Gold Inc., acquired a 100% interest in five-royalty free claims covering the core position of its Aurifero project in Sonora, and also extended its option agreement to acquire the remaining claims by another three years. With these acquisitions, Minaurum now control over 95% of this high-grade gold district.

·???????? Almadex? Minerals Ltd., announced on November 7, 2024, the acquisition of 14,174,056 common shares of Azucar Minerals Ltd., for $0.015 per share, totaling approximately $ 212,610.84. The Acquisition was a private transaction and did not occur on a stock exchange or other securities market. This acquisition, conducted through a private agreement with Newcrest Canada Holdings Inc., increases Almadex's ownership in Azucar to 29.87% of the outstanding shares. Prior to this transaction, Almadex and its associates held 7,881,529 shares, representing 10.68%. The acquisition was made under the "private agreement exemption" of NI 62-104 Take-Over Bids and Issuer Bids (San Pedro project, Jalisco).

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ON SOCIAL RESPONSIBILITY

·???????? No relevant news.

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, onyx vein in a low sulphidation epithermal vein in a project in San Luis Potosi, Mexico. Photo taken by Miguel A Heredia.