The Mining and Exploration News in Mexico: Highlights on the Second Week of January, 2024

By Miguel A Heredia

During the 2nd week of the year (January 8th to January 14th, 2023), at least 31 press releases were announced by companies working in Mexico, and 4 news published by the media, with nine communicating production results, eight disclosing deals and corporate issues, six reporting resources and developments, five announcing financing issues, five commenting on Mexican issues, and two informing on exploration results. ON MEXICO ISSUES, German Larrea, owner of Grupo Mexico, announced that it is in a group of several companies interested in acquiring a copper mine of First Quantum Minerals in southern Spain. Grupo Mexico reported that it advances in the construction of three copper mining projects, with a combined production of 246,000 tons per year. The Mexican Mining Chamber (CAMIMEX) announced that Mexico will begin operations of four new gold mines in 2024. President of the Association of Mining Engineers, Metallurgists and Geologists of Mexico (AIMMGM) indicated that insecurity has affected the most important mining regions of Mexico such as Sonora, Chihuahua, Zacatecas, Guerrero and the State of Mexico, where companies have had to allocate between 5 and 10% more to their security budget to combat high insecurity rates. Prime Mining reported the best drilling intercepts in Mexico on the second week of January, 2024. ON EXPLORATION, In Sonora, Colibri and JV partner Silver Spruce filed an application to drill 10,000m on the Diamante project. In Sinaloa, Centenario announced that it completed 700m in 5 holes from its maiden drilling program at its Eden project in Sinaloa. ?ON MINING, Agnico reported Q3, 2023 production and financial results from their Pinos Altos Mine in Chihuahua and La India Mine in Sonora. Alamos Gold announced Q4, 2023 production results and guidance for 2024, 2025 and 2026 (Mulatos Mine, Sonora). Aura reported Q4, 2023 production results from its Aranzazu Mine in Zacatecas. GoGold announced Q4, 2023 production from its Parral Tailings project in Chihuahua. Torex reported Q4 and full year 2023 production results from its El Limon-Guajes mine complex in Guerrero. Gatos Silver provided Q4 and full year 2023 production results from its Cerro Los Gatos mine, Chihuahua. Guanajuato Silver announced Q4, 2023 production results from their Mexican operations. Endeavour reported Q4 and full year 2023 production results from its Guanacevi and Bola?itos mines in Durango and Guanajuato respectively, and provided 2024 production and cost guidance. ?ON FINANCING Fortuna paid down an additional USD $41M debt (San Jose Mine, Oaxaca). Guanajuato Silver announced that it has arranged a debt settlement of CAD $455K (El Cubo Mine, Guanajuato). Atacama closed the second tranche of its previously announced brokered private placement for gross proceeds of CAD $5.5M (Cristina and Yécora projects in Chihuahua and Sonora states respectively). ?Orex closed one tranche of its non-brokered private placement for net proceeds of $183,750 (Sandra and Coneto projects, Durango). Centenario closed a non-brokered private placement for gross proceeds of $50K (Eden project, Sinaloa). ON RESOURCES AND DEVELOPMENT, Prime Mining released expansion and generative drill results from its 2023 drilling program at Los Reyes project, Sinaloa. Sonoran Desert completed sampling program at Cuatro Hermanos project, Sonora. Vizsla announced an update mineral resource estimate for its flagship Panuco project in Sinaloa. Heliostar filed an updated mineral resource estimate for its Ana Paula project in Guerrero. Silver Tiger provided a 2023 summary of activities and outlook for 2024 (El Tigre project, Sonora). Tocvan presented a 2023 summary of activities at their Picacho and Pilar projects in Sonora and plans for 2024. ?ON DEALS AND CORPORATE ISSUES, Avino signed a long-term land-use agreement with a local community for the development of La Preciosa, Durango. Trident Royalties announced the acquisition of royalty assets from Avino on La Preciosa deposit in Durango by making a payment of USD $8.75M. CMC Metals entered into a share purchase agreement to acquire the mineral rights of the Gavilanes property in Durango.? Defiance announced the acquisition of 100% interest in Lucita property in Zacatecas and also reported that the terms of the San Acacio property agreement in Zacatecas were successfully renegotiated with the vendor. Impact announced that it has entered into a managed services contract with Bell International de Mexico / TTN Energia to provide? Tesla Battery Energy System with solar at its Plomosas mine in Chihuahua. Monumental retained Senergy Communications Capital Inc., to provide digital media and capital markets communications services to the company (Jemi HREE project, Coahuila). Ridgestone reported results from its annual general meeting of shareholders (Rebeico project, Sonora). Excellon provided a corporate update and outlook for 2024 (Platosa mine, Durango). ?ON SOCIAL RESPONSIBILITY, No relevant news.

ON MEXICO ISSUE

·???????? German Larrea, owner of Grupo Mexico, announced that it is among several companies that are interested in acquiring a copper mine of First Quantum Minerals in southern Spain. First Quantum began a process to sell its Las Cruces mine in southern Spain in December after the sudden closure of the Panama copper mine left the company against financial uncertainty. The Las Cruces mine would give Grupo México, the conglomerate controlled by Mexican billionaire Germán Larrea, another opportunity to expand in Europe after he failed to acquire a different Spanish copper mining complex in 2021. Copper assets have attracted the interest of mining companies that expect demand to increase as a result of the energy transition, and the upward perspectives have already caused an increase in negotiations.

·???????? Grupo Mexico reported that it advances in the construction of three copper mining projects, with a combined production of 246,000 tons per year: a greenfield project located approximately 45Km from the Buenavista del Cobre mine containing estimated proven and probable reserves of 317M tonnes of 0.249% Cu, with an estimated production of 36K tonnes of Cu cathodes per year by 2024; El Pilar mine, and open pit with an annual production capacity of 36K tonnes of Cu cathodes, which is expected to begin production in 2024 with an expected useful life of 13 years; and El Arco, Baja California, a world-class deposit with mineral reserves of > 1,230M tonnes with an average grade of 0.4% and 141 M tonnes of leachable material with an ore grade of 0.27% Cu. El Arco includes an open pit mine with a estimated production of 190K tonnes of Cu and 105K Oz Au annually.

·???????? The Mexican Mining Chamber (CAMIMEX) announced that Mexico will begin operations of four new gold mines in 2024: Media Luna in Guerrero of Torex Gold Resource Inc.; Cerro de Oro in Zacatecas of Minera Alamos Inc., with an expected production within the first four years of 60K to 70K Oz Au and subsequent production of 58.4K Oz Au, a useful life of 8.2 years, ?a scheduled investment of USD $150.5M, and a start of operations expected in the second half of 2024; Terronera in Jalisco of Endeavour Silver Corp., located in Jalisco, with an investment of USD $175M and a production estimated at 33K Oz Au; and Cerro Caliche in Sonora of Sonoro Gold with an investment of USD $26M for a production of around 45K Oz Au. These projects will together produce 323,400 Oz Au annually and total an investment of USD $1,146M.

·???????? President of the Association of Mining Engineers, Metallurgists and Geologists of Mexico (AIMMGM) indicated that insecurity has affected the most important mining regions of Mexico such as Sonora, Chihuahua, Zacatecas, Guerrero and the State of Mexico, where companies have had to allocate between 5 and 10% more to their security budget to combat high insecurity rates. Under this panorama, the Fraser Institute of Canada placed Mexico as the fourth most unsafe country in Latin America to carry out mining activity, only below Venezuela, Colombia and Nicaragua. Globally, the Institute placed Mexico in 73rd place out of 84 jurisdictions evaluated in terms of investment attraction.

·???????? Prime Mining Corp., reported the best drilling intercepts in Mexico on the second week of January, 2024. Details are shown in the table below:

ON EXPLORATION

·???????? Colibri Resource Corporation and JV partner Silver Spruce Resources Inc., filed at SEMARNAT (The Mexico Environment Authority), an application to drill 10,000m on the Diamante project. The company expects to receive the authorization within the next three weeks and anticipates that the drilling program will begin soon after the receipt of the permit.

·???????? Centenario Gold Corp., announced that it completed 700m in 5 holes from its maiden drilling program at its Eden project in Sinaloa. Results from the first 3 holes are expected to be released prior to the end of January. All holes on this initial phase of the program target the strike and downdip extensions of the central portion of the ‘Buenavista’ mineralized structure. ?

ON MINING

·???????? Agnico Eagle Mines Limited reported Q3, 2023 production and financial results from their Pinos Altos Mine in Chihuahua and La India Mine in Sonora. At Pinos Altos Mine, Chihuahua, the company milled 450K tonnes of 1.84 g/t Au to produce 25,386 Oz Au, at a production costs per tonne of USD $89; minesite costs per tonne of USD $85; production costs of USD $1,581 per Oz Au produced; and total cash costs of USD $1,310 per Oz Au produced. At La India Mine, Sonora, the company milled 970K tonnes of 1.1 g/t Au to produce 22,269 Oz Au, at a production costs per tonne of USD $29; minesite costs per tonne of USD $27; production costs of USD $1,271 per Oz Au produced; and total cash costs of USD $1,156 per Oz Au produced.

·???????? Alamos Gold Inc., announced Q4, 2023 production results and guidance for the next three years 2024-2026. The company produced 48K Oz Au at Mulatos Mine, Sonora, and expects to produce in 2024 between 160K-170K Oz Au in 2024, at a total cash and all in sustaining cost per Oz Au of USD $825-875 and USD $1125-$1,175 respectively; to produce in 2025 between 120K-130K Oz Au at a total cash and all in sustaining cost per Oz Au of USD $700-800 and USD $1050-$1,150 respectively;? and between 120K-130K Oz Au in 2026, at a total cash and all in sustaining cost per Oz Au of USD $675-775 and USD $975-$1,075 respectively.

·???????? Aura Minerals Inc., reported Q4, 2023 production results from its Aranzazu Mine in Zacatecas. It produced 7,061 Oz Au, 130,370 Oz Ag, and 9.6K Lb Cu for a total of 26,532 Oz AuEq.

·???????? GoGold Resources Inc., announced Q4, 2023 production from its Parral Tailings project in Chihuahua. The company produced 109,016 Oz Ag, 1,848 Oz Au, and 212.8K Lb Cu (300,260 Oz AgEq).

·???????? Torex Gold Resources Inc., reported Q4 and full year 2023 production results from its El Limon-Guajes mine complex in Guerrero. The company mined 19,404 tonnes per day in Q4, 2023 and 11,976 tonnes per day in the fiscal year 2023, with metallurgical recoveries of 89.5% and 88.6% respectively. Torex produced 137,993 Oz Au in Q4, 2023 for a total of 453,778 Oz Au in the full year of which sold 138,794 Oz Au in Q4, 2023 for a total of 444,750 Oz Au in the full year.

·???????? Gatos Silver Inc., provided Q4 and full year 2023 production results from its 70% owned Cerro Los Gatos mine, Chihuahua. On a 100% basis, the company milled during Q4, 2023 over 277,318 tonnes of 318 g/t Ag, 3.9% Zn, 1.9% Pb, and 0.3 g/t Au with metallurgical recoveries of 90.3%,61.8%, 89.8%, and 51.6% respectively, to produce? 2.56M Oz Ag, 14.6M Lb Zn, 10.2M Lb Pb, and 1.4K Oz Au. During the full year 2023, the company? milled over 1,071,400 tonnes of 299 g/t Ag, 3.9% Zn, 1.8% Pb, and 0.29 g/t Au with metallurgical recoveries of 89.4%,62.1%, 88.7%, and 52.4% respectively, to produce? 9.21M Oz Ag, 57.3M Lb Zn, 38.9M Lb Pb, and 5.26K Oz Au.

·???????? Guanajuato Silver Company Ltd., announced Q4, 2023 consolidated production results from their Mexican operations (El Cubo, Valenciana and san Ignacio mines in Guanajuato, and Topia mine in Durango).? The company mined 133,497 tonnes and milled 137,339 tonnes to produce 394,971 Oz Ag, 4,395 Oz Au, 837.2K Lb Pb, and 960.2K Lb Zn.

·???????? Endeavour Silver Corp., reported Q4 and full year 2023 production results from its Guanacevi and Bola?itos mines in Durango and Guanajuato respectively, and provided 2024 production and cost guidance. During Q4, 2023, the company processed at Guanacevi mine, Durango over 110,781 tonnes of 419 g/t Ag and 1.2 g/t Au with metallurgical recoveries of 85.2% and 87% respectively to produce 1.27M Oz Ag and 3,771 Oz Au. Through the full 2023 year, the company processed 433,409 tonnes of 417 g/t Ag and 1.19 g/t Au with metallurgical recoveries of 88% and 90.5% respectively to produce 5.1M Oz Ag and 14.9K Oz Au.? During Q4, 2023, the company processed at Bola?itos mine, Guanajuato over 109,683 tonnes of 45 g/t Ag and 1.86 g/t Au with metallurgical recoveries of 84.8% and 89.5% respectively to produce 134.7K Oz Ag and 5,887 Oz Au. Through the full 2023 year, the company processed 440,973 tonnes of 47 g/t Ag and 1.82 g/t Au with metallurgical recoveries of 85.1% and 88.6% respectively to produce 567.5K Oz Ag and 22.9K Oz Au. Endeavour also provided 2024 production and cost guidance and expects to produce between 4.9-5.2M Oz Ag and 13-15K Oz Au at Guanacevi mine, Durango, while at Bola?itos mine, Guanajuato it expects to produce between 0.5-0.6M Oz Ag and 34-38K Oz Au.

ON FINANCING

·???????? Fortuna Silver Inc., paid down an additional USD $41M debt of its revolving credit facility at the end of the fourth quarter of 2023, using cash on hand (San Jose Mine, Oaxaca).

·???????? Guanajuato Silver Company Ltd., announced that it has arranged to settle an aggregate of CAD $455K in outstanding liabilities of the Company by the issuance of an aggregate of 1,780,000 common shares in the capital of the Company at a deemed price of $0.25 per share. The debt settlement includes the issuance of shares to certain of the Company's suppliers totaling approximately CAD $405K and to three members of senior management totaling approximately CAD $40K (El Cubo Mine, Guanajuato).

·???????? Atacama Copper Corporation closed the second tranche of its previously announced brokered private placement for 30,782,634 subscription receipts at a price of CAD $0.18 per subscription receipt for gross proceeds of CAD $5.5M. The net proceeds of the concurrent financing will be used to advance exploration programs across the combined portfolio, with particular focus on Cristina project in Chihuahua and Yécora project in Sonora, and for general corporate purposes.

·???????? Orex Minerals Inc., closed one tranche of its non-brokered private placement by issuing 1,225,000 units at a price of $$0.15 per unit for net proceeds of $183,750 (Sandra and Coneto projects, Durango).

·???????? Centenario Gold Corp., closed a non-brokered private placement for gross proceeds of $50K through the issuance of 333,333 units at a price of $0.15 per unit.? Proceeds from this private placement will be used for exploration of the Eden project, Sinaloa and general working capital.

ON RESOURCES AND DEVELOPMENT

·???????? Prime Mining Corp., released expansion and generative drill results from its 2023 drilling program at Los Reyes project, Sinaloa. Drilling highlights (reported in true widths) include holes 23LP-18 collared at Las Primas Area with 11.60 g/t Au and 311 g/t Ag (15.63 g/t AuEq) over 4.50m, including 20.39 g/t Au and 551 g/t Ag (27.52 g/t AuEq) over 2.50m, including 41.90 g/t Au and 1,111 g/t Ag (56.28 g/t AuEq) over 1.05m; and hole 23GE-147 collared at Guadalupe East Area with 9.69 g/t Au and 639 g/t Ag (17.95 g/t AuEq) over 31.25m, including 29.41 g/t Au and 1,797 g/t Ag (52.67 g/t AuEq) over 6.45m, including 45.34 g/t Au and 2,723 g/t Ag (80.57 g/t AuEq) over 3.90m. “The incredibly high-grade intercepts at Guadalupe East are exciting from a resource expansion perspective. 23GE-147 lies almost entirely within the 2023 Economic Resource Pit”.

·???????? Sonoran Desert Copper Corporation completed sampling program at Cuatro Hermanos project, Sonora. A total of 82 rock samples were collected. At Noemi Zone, 10 samples collected returned Cu values ranging from 37.7 ppm to 1,915 ppm with an average value of 336.5 ppm Cu; Mo from 2.57 ppm to 67 ppm with an average value of 18 ppm Mo; Ag values from 1 ppm to 173 ppm with an average value of 45 ppm; and Au values from 0.02 ppm to 5.21 ppm with an average value of 1 ppm. At South Conglomerate Zone, 20 samples collected returned Cu values ranging from 102 ppm to 162,500 ppm with an average value of 17,363 ppm Cu; Mo values from 1.68 ppm to 49.8 ppm with an average value of 22.1 ppm Mo; Ag values from 0.21 ppm to 1.5 ppm with an average value of 0.9 ppm Ag. At Maine Zone, 6 samples collected returned Cu values ranging from 93.1 ppm to 274 ppm with an average value of 196.6 ppm Cu; Mo values from 4.13 ppm to 215 ppm with an average value of 100.1 ppm Mo; and Ag values from 0.05 ppm to 6.45 ppm with an average value of 1.7 ppm Ag. At West Zone, 6 samples collected returned Cu values ranging from 37.8 ppm to 2,750 ppm with an average value of 1,204.8 ppm Cu; Mo values from 17.25 ppm to 391 ppm with an average grade of 131.3 ppm Mo; and Ag values from 0.23 ppm to 3.6 ppm with an average value of 1.44 ppm Ag. At Cactus Zone, 3 samples collected returned Cu values ranging from 1,840 ppm to 67,900 ppm with an average value of 35.980 ppm Cu, Mo values from 132 ppm to 336 ppm with an average value of 217.5 ppm Mo; and Ag values from 8.17 ppm to 13.9 ppm with an average value of 10.6 ppm Ag. At San Lorenzo Zone, 37 samples collected returned Cu values ranging from 4 ppm to 22,500 ppm with an average value of 705 ppm Cu; Mo values from 0.14 ppm to 96.70 ppm with an average grade of 8.22 ppm; and Ag values from 0.01 ppm to 60 ppm with an average value of 2.46 ppm.

·???????? Vizsla Silver Corp., announced an update mineral resource estimate for its flagship Panuco project in Sinaloa. “Indicated Mineral Resources are estimated at 9.5 M tonnes grading 289 g/t Ag, 2.41 g/t Au, 0.27% Pb, and 0.84% Zn (511 g/t AgEq). The Updated Mineral Resource Estimate includes indicated mineral resources of 88.2M Oz Ag, 736K Oz Au, 56.9M Lb Pb, and 178.9M Lb Zn (155.8M Oz AgEq). Highlights of the Updated Mineral Resource Estimate include 48.7% increase in indicated mineral resources from 104.8 to 155.8M Oz AgEq; 48.7% increase in inferred mineral resources from 114.1 to 169.6Moz AgEq; 17% increase in average indicated mineral resource grade from 437 to 511 g/t AgEq; and new addition of La Luisa containing 4.0 M Oz AgEq indicated and 25.3M Oz AgEq of Inferred Resources. The Updated Mineral Resource represents less than 10% of the known vein strike of the newly consolidated district.?

·???????? Heliostar Metals Ltd., filed an updated mineral resource estimate for its Ana Paula project in Guerrero. Results were press released last November 27, 2023.

·???????? Silver Tiger Metals Inc., provided a 2023 summary of activities and outlook for 2024 (El Tigre project, Sonora). 2023 highlights include the closing of a $18M bought deal financing with a syndicate of underwriters led by BMO Capital Markets; 30,000m of drilling completed at El Tigre project in Sonora; the delivery of an updated mineral resource estimate for El Tigre at September 18, 2023; and the delivery of a Preliminary Economic Assessment in November 2023 with an NPV of USD $287M. The company also plans in 2024 to complete 25,000m of drilling during H1, 2024 with the $20.1M it has in cash as of September 30,2023; to deliver a Prefeasibility Study and an updated Mineral Resource Estimate during Q2-2024; and to deliver a Preliminary Economic Assessment for the permitted underground resource during Q3-2024.?

·???????? Tocvan Ventures Corp., presented a 2023 summary of activities at their Picacho and Pilar projects in Sonora and plans for 2024. At Picacho project, Sonora, the company made a discovery in first 1,000m, intercepting 0.6 g/t Au over 44.2m including 2 g/t Au and 7 g/t Ag over? 12.2m, approximately 200m to the north where a hole intersected?0.5 g/t Au over 27.5m, including 1.1 g/t Au over 12.2m. At Pilar project, Sonora, Tocvan conducted a successful bulk sample of 1,400 tonnes with head grades of 1.9 g/t Au and 7 g/t Ag with an initial?recovery of 62% for gold. Agitated bottle roll test of the bulk sample material returned?80% recovery of gold and 94% recovery of silver?after a?rapid 24-hour retention time. Additional surface and core composites from across Pilar returned?95 to 99% recovery of gold and between 73 to 97% recovery of silver?through combined?gravity and agitated leach?processing.??An initial doré bar was later poured from the bulk sample material totalling?1.487 kilograms, containing 18% gold and 69% silver. A second gold-rich doré bar is scheduled to be poured this month. The company also consolidated the project area covering 22 square-kilometers and reported a trench sample results highlighted by 1.9 g/t Au and 9 g/t Ag over 20m. Plans for 2024 include a Resource infill and expansion drilling; a Maiden Resource Estimate in Q4, 2023; a Mine planning and design; submit applications for a MIA or Environmental Impact Statement, and an EJT or technical justification study; continue metallurgical testing; continue mapping and sampling on new expansion areas; conduct trenching and channel sampling of new targets; run geophysical surveys, including magnetics; and perform discovery drilling.

ON DEALS AND CORPORATE ISSUES

·???????? Avino Silver & Gold Mines Limited signed a long-term land-use agreement with a local community for the development of La Preciosa in Durango, which is located approximately 19Km from the current Avino Mine production operation.

·???????? Trident Royalties Plc., announced the acquisition of royalty assets from Avino Silver & Gold Mines Limited, comprising1.25% NSR covering La Gloria and Abundancia Veins at La Preciosa deposit in Durango, and a 2% gross value return royalty covering all other areas of La Preciosa by making a payment of USD $8.75M within 12 months of first silver production at La Preciosa.

·???????? CMC Metals Ltd., entered into a share purchase agreement to acquire all the issued and outstanding shares of Swordfish Silver Corp. , who, through Sailfish de Mexico S.A. de C.V., holds the mineral rights of the Gavilanes property in Durango.? The deal is subject to the TSX approval.

·???????? Defiance Silver Corp., announced the acquisition of 100% interest in Lucita property, Zacatecas from Pan American Silver Corp., by completing payments for USD $1.5M and Pan American retaining a 2% NSR. It also reported that the terms of the San Acacio property agreement in Zacatecas were successfully renegotiated with the vendor. “The project vendor has agreed to extend the option agreement terms by one year from September 27, 2023 to September, 27, 2024. Defiance will now be making quarterly payments, over the year, to the property vendor totaling USD $539,721.51, with the final option payment of USD $2,300,000 due September27, 2024. In accordance with the original agreement, the vendor retains a 2.5% NSR which may be purchased for USD $2,500,000”.

·???????? Impact Silver Corp., announced that it has entered into a managed services contract with Bell International de Mexico / TTN Energia for the planning, design, construction, and operation of Tesla commercial battery with solar at its Plomosas mine in Chihuahua.

·???????? Monumental Energy Corp., retained Senergy Communications Capital Inc., to provide digital media and capital markets communications services to the company by paying CAD$ 5K and up to maximum of CAD $30K towards direct expenses and costs for a 2-month period (Jemi HREE project, Coahuila).

·???????? Ridgestone Mining Inc., reported results from its annual general meeting of shareholders (Rebeico project, Sonora).

·???????? Excellon Resources Inc., provided a corporate update and outlook for 2024 (Platosa mine, Durango).? The company eliminated the USD $22M litigation liability overhang, through the deconsolidation of San Pedro Resources, and completed the strategic review of prior Mexico operations to allow Excellon to focus energies on key assets. Excellon is pursuing acquisition opportunities where it can unlock further value for shareholders.

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, a hydrothermal breccia in an intermediate sulphidation epithermal vein system in a project in Chihuahua. Photo by Miguel A Heredia