The Mining and Exploration News in Mexico: Highlights on the Second Week of March, 2022.
By Miguel A Heredia
During the 10th week of the year (March 7th to March 13th, 2022), at least 20 press releases were announced by companies working in Mexico, and 3 news published by the media, with nine reporting resources and developments of their properties, four informing on exploration results, four communicating production and financial results, three discussing social issues, two announcing financial issues, and one disclosing deals and corporate issues. ON MEXICO ISSUES, no relevant news. ON EXPLORATION, In Sonora, Silver Spruce filed environmental permits to drill at their the Diamante, Mezquite and Jackie projects. In Durango, Canasil provided a review of the results from its 2020-21 drill program on the Candy Vein at its Nora project and Silver Wolf provided a 2021 year in review and 2022 outlook on its Ana Maria property. ON MINING, Endeavour reported consolidated full year 2021 production and financial results from their mining operations in México. First Majestic announced Q4 and full year 2021 production and financial results from their Mexican mine operations. Gatos Silver presented Q4 and 2021 year-end production and financial results from its 70% owned Cerro Los Gatos operation in Chihuahua, and provided a corporate update. Gold Resource provided Q4 and year-end 2021 production and financial results from its Don David Gold mine in Oaxaca. ON FINANCING, Argonaut sold 9.74M of common shares of Magna Gold for aggregate gross proceeds of CAD $6.82M. Kootenay closed a brokered private placement for gross proceeds of $4.78M and a non-brokered portion of the offering for gross proceeds of approximately $1.47M, for total aggregate gross proceeds to the company of $6.25M (Columba project, Chihuahua). ON RESOURCES AND DEVELOPMENT, Altaley announced positive Pre-Feasibility Study and updated Mineral Resources and Reserves at its Tahuehueto project, Durango. Capitan Mining released results from its ongoing RC drilling program at its Cruz de Plata project (former referred as Peñoles) in Durango. Magna Gold released results from the first 22 of 43 drill holes completed at its Margarita project in Chihuahua. Prime Mining reported results from its ongoing drilling program at its Los Reyes project, Sinaloa. Avino announced drill results from the La Potosina area at its Avino project, Durango. Azucar Minerals reported that it will commence to drill test a new large lithocap alteration at its El Cobre project, Veracruz. Barksdale released results from its phase I, 5,000m drilling program at the Cerro Verde zone on its San Javier project, Sonora. Vizsla reported results from seven new drill holes collared on the Copala and Christiano veins within its Panuco project in Sinaloa. ON DEALS AND CORPORATE ISSUES, Ranchero Gold announced the appointments of two new members to its Board of Directors (Santa Daniela project, Sonora). Fabled announced that it has completed the planning of its phase 2 definition diamond drill program at its Santa Maria project in Chihuahua. ON SOCIAL RESPONSIBILITY, Fresnillo plc reported the return to face-to-face work in the state, and the opening of its outdoor activities. Grupo Mexico, within the framework of the International Mother Language Day, held activities related to the preservation and promotion of indigenous languages in the communities where it has a presence. Media Luna Mining Company (Torex Gold) ratified for the sixth consecutive year the collaboration agreement with fishing cooperatives in the Balsas River Basin in Guerrero.
ON MEXICO ISSUE
· No relevant news.
ON EXPLORATION
· Silver Spruce Resources Inc., filed environmental permits with the Secretariat of Natural Resources and Environment (SEMARNAT) to drill at their the Diamante, Mezquite and Jackie projects in Sonora. Approvals from SEMARNAT are expected to be obtained by late March, 2022.
· Canasil Resources Inc., provided a review of the results from its 2020-21 drill program on the Candy Vein at its Nora project. 13 drill holes were completed for a total of 3,296m to test the Candy vein over a strike distance of 500m and to a vertical depth of 250m below surface. All the holes encountered the mineralized vein with the highest true width x grade value on hole NRE-21-11 with 5.31 g/t Au and 336 g/t Ag (748 g/t AgEq) over a true width (TW) of 11.29m, giving a TW x grade value of 8,445 g/t AgEq x m. The drill results show that the Candy vein hosts consistently high grade gold and silver mineralization over appreciable widths. The Candy vein is known over 3km long but only 500m have been drill tested. Additionally, Canasil reported that systematic grid soil sampling over a 2km east-west and 3km north-south area covering the central zone of the project returned widespread silver, gold, copper, zinc and lead geochemical anomalies. “The gold and silver anomalies are particularly strong over the 3-Km strike extent of the Candy vein structure on the western side of the project area, as well as to the southwest and east of the Candy vein structure. A strong silver and gold anomaly also extends for 1.5 Km southwest from the location of the above high grade drill intercepts on the Candy vein and a breccia target has been identified to the south with potential for hosting bulk tonnage disseminated silver-gold mineralization”.
· Silver Wolf Exploration Ltd., provided a 2021 year in review and 2022 outlook on its Ana Maria property in Durango. The accomplished goals on 2021 include the completion of a NI-43-101 compliant technical report on the properties; an Aster satellite imaging survey, an airborne LiDAR and Hyperspectral imaging survey, an Airborne geophysical data survey, the application to expand the land package by 3x, and the completion of the 2021 mapping and sampling program to identify prospective areas and uncover previous historical workings. The company also provided a 2022 outlook that include the completion of the geophysical data interpretation, to define drill targets for the initial drill program, to apply and receive drill permits, to mobilize drilling equipment to execute an initial drill program, and to receive approval from the Mexican authorities on the expanded land application.
ON MINING
· Endeavour Silver Corp., reported consolidated full year 2021 production and financial results from their mining operations in México. The company mined 887,424 tonnes to produce 4.87M Oz Ag, and 42.3K Oz Au at a cash cost of USD $9.31 per Oz Ag, a total production cost of USD $14.70 per Oz Ag, and all-in sustaining cost (AISC) of USD $20.34 per Oz Ag. Endeavor sold 3.86 M Oz Ag and 39.1K Oz Au and reported revenues of USD $165.3M, adjust net earnings of USD $(-8.6M), mine operating earnings of USD $36.4M, EBIDTA of USD $54.9M, and working capital of USD $121.2M.
· First Majestic Silver Corp., announced Q4 and full year 2021 production and financial results from their Mexican mine operations. The below tables show the figures per separate mine for Q4, and full year 2021.
No alt text provided for this image
No alt text provided for this image
First Majestic reported consolidated financial results (including Jerritt Canyon mine in USA). It reported revenues of USD $204.9M and USD $584.1M respectively for the periods Q4, and full year 2021; mine operating earnings of USD $40.4M and USD $101.4M respectively; loss earnings of USD $4M and USD $4.9M respectively; operating cash flows before working capital and taxes of USD $71.8M and USD $176.8M respectively; cash and cash equivalents of USD $237.9M in each period; working capital of USD $224.4M in each period; and free cash flow of USD $66.4M and USD ($16.9M) for Q4 and full year 2021 respectively.
· Gatos Silver Inc., presented Q4 and 2021 year-end production and financial results from its 70% owned Cerro Los Gatos operation in Chihuahua, and provided a corporate update. On Q4, 2021, the company milled 241,397 tonnes of 331 g/t Ag, 0.3 g/t Au, 2.2% Pb, and 3.9% Zn with metallurgical recoveries of 90%, 63%, 91% and 73% respectively, to produce 2.3M Oz Ag, 1.3K Oz Au, 10.2M Lb Pb, and 12.9M Lb Zn. Average realized price per Oz Ag, Oz Au, Lb Pb, and Lb Zn were USD $23.08, USD $1,804, USD $1.04, and USD $1.58 respectively. For the full year, Gatos milled 909,886 tonnes of 295 g/t Ag, 0.32 g/t Au, 2.3% Pb, and 3.9% Zn with metallurgical recoveries of 88%, 63%, 90% and 73% respectively, to produce 7.6M Oz Ag, 5.2K Oz Au, 39.8M Lb Pb, and 49.6M Lb Zn. Average realized price per Oz Ag, Oz Au, Lb Pb, and Lb Zn were USD $24.51, USD $1,804, USD $0.99, and USD $1.36 respectively. The company reported exploration expenses, operating costs and sales for the period Q4, 2021 of USD $0.3 , USD $3.8M, and USD &72.9M respectively, while for the full year 2021 of USD $1.7, USD $19.3M, and USD $251.2M respectively. Gatos provided its 2022 guidance and expects to produce between 8.5- 9M Oz Ag, 4-4.5K Oz Au, 36-40M Lb Pb, and 49-54M Lb Zn at AISC of USD $16.5-18.5 per payable silver on Co-product basis and USD $13-15 per payable silver on by-product basis.
· Gold Resource Corporation provided Q4 and year-end 2021 production and financial results from its Don David Gold mine in Oaxaca. On Q4, 2021 the company milled 135,398 tonnes of 1.93 g/t Au, 82 g/t Ag, 0.38% Cu, 2.2% Pb, and 4.8% Zn to produce 1.8K Oz Au, 287.8K Oz Ag, 907.2K Lb Cu, 4.6M Lb Pb, and 9.33M Lb Zn at average metal prices realized of USD $1,811 per Oz Au, USD $23.51 per Oz Ag, USD $9,768 per tonne of Cu, usd $2,339 per tonne of Pb, and USD $3,446 per tonne of Zn. On the full year 2021, Gatos milled 501,978 tonnes of 2.01 g/t Au, 80 g/t Ag, 0.39% Cu, 1.9% Pb, and 4.4% Zn to produce 22.6K Oz Au, 1.06M Oz Ag, 3.18M Lb Cu, 13-4M Lb Pb, and 30.3M Lb Zn at average metal prices realized of USD $1,796 per Oz Au, USD $25.06 per Oz Ag, USD $9,553 per tonne of Cu, USD $2,268 per tonne of Pb, and USD $3,091 per tonne of Zn. On Q4, 2021, the company reported sales for USD $38.6M, EBIDTA of USD $10.3M, and operating cost of USD $12.9M, while on the full year 2021 it reported USD $125.2M, USD $33.64M, and USD $34.78M respectively.
ON FINANCING
· Argonaut Gold Inc., sold 9.74M of common shares of Magna Gold at a price of CAD $0.70 per common share for aggregate gross proceeds of CAD $6.82M.
· Kootenay Silver Inc., closed a brokered private placement for gross proceeds of $4.78M and a non-brokered portion of the offering for gross proceeds of approximately $1.47M, for total aggregate gross proceeds to the company of $6.25M. Gross proceeds will be used for exploration activities, working capital and other general corporate purposes (Columba project, Chihuahua).
ON RESOURCES AND DEVELOPMENT
· Altaley Mining Corporation announced positive Pre-Feasibility Study (PFS) and updated Mineral Resources and Reserves at its Tahuehueto project, Durango. Highlights of the PFS include a throughput of 1,000 tonnes per day; a mine life of 10.9 years; a pre-tax net cash flow of USD $240.9M; a total capital cost of USD $56.9M; an all in sustaining cost (AISC) of USD $844 per Oz AuEq; a pre-tax Net Present Value (VNP) of USD $152.8M at 5% discount rate; an EBIDTA of USD $246.1M, and an internal rate of return (IRR) of 45%. The company also updated Mineral Resources and Reserves. It reported Proven+ Probable Reserves of 3.58M tonnes grading 2.55 g/t Au, 50 g/t Ag, 0.26% Cu, 1.1% Pb, and 1.9% Zn with metallurgical recoveries of 87%, 85%, 85%, 85% and 68& respectively to contain 294K Oz Au, 5.7M Oz Ag, 20.55M Lb Cu, 87.36M Lb Pb, and 151.6M Lb Zn. Altaley also reported Measured +Indicated Resources of 6.26M tonnes grading 2.11 g/t Au, 47 g/t Ag, 0.27% Cu, 0.9% Pb, and 2% Zn (4.47 g/t AuEq) to contain 415K Oz Au, 9.4M Oz Ag, 36.6M Lb Cu, 123.9M Lb Pb, and 273.3M Lb Zn (900K Oz AuEq); and Indicated Resources of 918K tonnes grading 1.02 g/t Au, 29 g/t Ag, 0.15% Cu, 1.2% Pb, and 2% Zn (3.05 g/t AuEq) to contain 30K Oz Au, 840K Oz Ag, 3M Lb Cu, 23.5M Lb Pb, and 39.7M Lb Zn (90K Oz AuEq).
· Capitan Mining Inc., released results from its ongoing RC drilling program at its Cruz de Plata project (former referred as Peñoles) in Durango. Hole 21-JMRC03 drilled on Jesus Maria Vein system returned 0.37 g/t Au, 177 g/t Ag, 3.2% Pb, and 3.6% Zn (435 g/t AgEq) over 10.7m, including 0.71 g/t Au, 290 g/t Ag, 6.8% Pb, 6.6% Zn (798 g/t AgEq) over 11.5m, including 0.45 g/t Au, 258 g/t Ag, 4.7% Pb, and 5% Zn (620 g/t AgEq) over 1.5m, including 0.27 g/t Au, 370 g/t Ag, 5.6% Pb, and 8% Zn (860 g/t AgEq) over 1.5m, including 0.55 g/t Au, 122 g/t Ag, 2.6% Pb, and 3% Zn (358 g/t AgEq) over 1.5m, including 0.51 g/t Au, 281 g/t Ag, 5.9% Pb, and 3.8% Zn (641 g/t AgEq) over 1.5m. Assays are still pending for 11 RC holes out of 15 completed.
· Magna Gold Corp., released results from the first 22 of 43 drill holes completed at its Margarita project in Chihuahua. Drill highlights include hole MAR-21-002 with 139 g/t Ag, 0.1% Pb and 0.6% Zn over 46.8m, including 801 g/t Ag, 0.5% Pb, and 0.8% Zn over 2.85m; hole MAR-21-004 with 113 g/t Ag, 0.03% Pb, and 0.1% Zn over 32.55m, including 300 g/t Ag, 0.6% Pb, and 0.2% Zn over 6m; hole MAR-21-005 with 133 g/t Ag, 0.05% Pb and 0.2% Zn over 39.5m, including 540 g/t Ag, 0.01% Pb, and 0.4% Zn over 1.85m, and 301 g/t Ag, 0.06% Pb, and 0.1% Zn over 5.1m; hole MAR-21-016 with 157 g/t Ag, 0.5% Pb, and 1.1% Zn over 29.5m, including 0.31 g/t Au, 821 g/t Ag, 2.4% Pb, and 5.6% Zn over 3.9m; hole MAR-21-020 with 156 g/t Ag, 0.1% Pb, and 0.5% Zn over 55.95m, including 498 g/t Ag, 0.4% Pb, and 1.6% Zn over 12.8m;and hole MAR-21-022 with 127 g/t Ag, 0.1% Pb, and 0.3% Zn over 19.2m, including 0.3 g/t Au, 567 g/t Ag, 0.4% Pb, and 1.4% Zn over 3.55m, and 110 g/t Ag, 0.4% Pb, and 0.6% Zn over 16.55m, including 0.18 g/t Au, 440 g/t Ag, 1.6% Pb, and 1.8% Zn over 3m. Magna plans to release a maiden resource toward the end of the Q1, 2022. This resource estimate will lead to the completion of the first ever preliminary economic assessment (PEA) shortly thereafter.
· Prime Mining Corp., reported results from its ongoing drilling program at Guadalupe East on its Los Reyes project, Sinaloa. Hole 22GE-33 intersected multiple mineralized intervals. This hole intersected 11.60 g/t Au and 219 g/t Ag over a true width (TW) of 1.20m, then a 3.7m stope, to continue with 3.33 g/t Au and 115 g/t Ag over a TW of 29.29m, including 2.68 g/t Au, and 93 g/t Ag over a TW of 6.10m, and including 6.57 g/t Au and 137 g/t Ag over a TW of 9m, including 30.9 g/t Au and 605 g/t Ag over a TW of 1.20m, and including 3.67 g/t Au and 204 g/t Ag over a TW of 10.40m, including 8.39 g/t Au and 321 g/t Ag over a TW of 2.10m. This hole is located on the west side of the Guadalupe East conceptual open pit. There are currently 15 pending drill holes at Guadalupe East out of a total of 49 completed.
· Avino Silver & Gold Mines Ltd., announced drill results from its 2,400m drilling program conducted in 2021 on the La Potosina area at its Avino project, Durango. Highlights include hole LP-21-06 with 0.09 g/t Au, 270 g/t Ag, 0.25% Cu, 0.9% Pb, and 2.5% Zn (463 g/t AgEq) over a true width (TW) of 1.7m, including 0.09 g/t Au, 1,257 g/t Ag, 0.48% Cu, 2.8% Pb, and 4.4% Zn (1,641 g/t AgEq) over a TW of 0.20m, including 0.08 g/t Au, 510 g/t Ag, 0.6% Cu, 2.2% Pb, and 5% Zn (918 g/t AgEq) over a TW of 0.35m, including 0.07 g/t Au, 406 g/t Ag, 0.44% Cu, 1.3% Pb, and 4.2% Zn (717 g/t AgEq) over a TW of 0.45m; and hole LP-21-007 with 0.4 g/t Au, 617 g/t Ag, 0.1% Pb, and 0.2% Zn (668 g/t AgEq) over a TW of 2.87m. On 2022, Avino plans include an additional 40 holes with 6,000m of drilling to test the continuity of the vein at elevations above 2,100m while looking for favorable dilation structures in the northwest.
· Azucar Minerals Ltd., reported that it will commence to drill test a new large lithocap alteration at its El Cobre project, Veracruz. A mineral mapping study conducted on this area defined a strong alteration signature interpreted to reflect the surface zoning of an underlying porphyry body.
· Barksdale Resources Corp., released results from its phase I, 5,000m drilling program at the Cerro Verde zone on its San Javier project, Sonora. Drilling highlights include hole SJ21-31 with 0.05% Cu and 1.11 g/t Au over 36m, including 0.03% Cu and 1.71 g/t Au over 15m, and 0.06% Cu and 1.89 g/t Au over 3m, plus 0.54% Cu over 48m, including 1.35% Cu over 6m; and hole SJ21-35 with 0.24% Cu over 6m, plus 0.22% Cu over 12m, plus 0.35% Cu over 15m. Drilling results confirmed and expanded the footprint of the Cerro Verde Zone.
· Fabled Silver Gold Corp., announced that it has completed the planning of its phase 2 definition diamond drill program at its Santa Maria project in Chihuahua as well as a plan to drill test other structures in the property. This second phase will consist of a minimum of 5,000m for definition drilling, and drill test possible structural dilation zones on the Northeast and secondary mineralized structures, identified after performing a property wide mapping & sampling as well as an structural interpretation. “Once the field work and observations have been completed the phase 2 exploration first priority drill targets will be defined in the coming weeks”.
· Vizsla Silver Corp., reported results from seven new drill holes collared on the Copala and Christiano veins within its Panuco project in Sinaloa. Drill highlights include hole CS-21-116 with 97 g/t Ag and 0.55 g/t Au (141 g/t AgEq) over a true width (TW) of 2.4m, and 1,559 g/t Ag and 7.29 g/t Au (2,142 g/t AgEq) over a TW of 7.81m, including 2,728 g/t Ag and 13.10 g/t Au (3,775 g/t AgEq) over a TW of 2.60m, and 1,531 g/t Ag and 6.94 g/t Au (2,086 g/t AgEq) over a TW of 3.14m; hole CS-21-123 with 248 g/t Ag and 2.03 g/t Au (410 g/t AgEq) over a TW of 14.45m, including 1,237 g/t Ag and 10.53 g/t Au (2,078 g/t AgEq) over a TW of 2.09m, and including 197 g/t Ag and 1.45 g/t Au (312 g/t AgEq) over a TW of 2.68m; hole CS-21-115 with 1,900 g/t Ag and 11.09 g/t Au (2,787 g/t AgEq) over a TW of 1.21m; and hole CS-21-112 with 682 g/t Ag and 5.51 g/t Au (1,122 g/t AgEq) over a TW of 1.73m, including 973 g/t Ag and 7.97 g/t Au (1,610 g/t AgEq) over a TW of 1.1m. The Copala Vein has now been tested with 17 holes with mineralization open in all directions.
ON DEALS AND CORPORATE ISSUES
· Ranchero Gold Corp., announced the appointments of two new members to its Board of Directors, and the addition of Ken Balleweg to its Technical Advisory team (Santa Daniela project, Sonora).
ON SOCIAL RESPONSIBILITY
· Fresnillo plc reported the return to face-to-face work in the state, and the opening of its outdoor activities, taking into account the hygiene and healthy distance measures promoted by the health authorities, as well as the presentation of the vaccination certificate for access the corresponding facilities. For Fresnillo plc, physical activation represents one of the stronger pillars for the people development.
· Grupo Mexico, within the framework of the International Mother Language Day, held activities related to the preservation and promotion of indigenous languages in the communities where it has a presence.
· Media Luna Mining Company (Torex Gold) ratified for the sixth consecutive year the collaboration agreement with fishing cooperatives in the Balsas River Basin in Guerrero. F is the second most important economic activity in the mining corridor, so the commitment is to help to consolidate economic activities in the communities.
Content like what you have just read can be seen at https://gambusinoprospector.com/ and at LinkedIn’s Mexico Mineral Exploration Group.
By Miguel A Heredia
During the 10th week of the year (March 7th to March 13th, 2022), at least 20 press releases were announced by companies working in Mexico, and 3 news published by the media, with nine reporting resources and developments of their properties, four informing on exploration results, four communicating production and financial results, three discussing social issues, two announcing financial issues, and one disclosing deals and corporate issues. ON MEXICO ISSUES, no relevant news. ON EXPLORATION, In Sonora, Silver Spruce filed environmental permits to drill at their the Diamante, Mezquite and Jackie projects. In Durango, Canasil provided a review of the results from its 2020-21 drill program on the Candy Vein at its Nora project and Silver Wolf provided a 2021 year in review and 2022 outlook on its Ana Maria property. ON MINING, Endeavour reported consolidated full year 2021 production and financial results from their mining operations in México. First Majestic announced Q4 and full year 2021 production and financial results from their Mexican mine operations. Gatos Silver presented Q4 and 2021 year-end production and financial results from its 70% owned Cerro Los Gatos operation in Chihuahua, and provided a corporate update. Gold Resource provided Q4 and year-end 2021 production and financial results from its Don David Gold mine in Oaxaca. ON FINANCING, Argonaut sold 9.74M of common shares of Magna Gold for aggregate gross proceeds of CAD $6.82M. Kootenay closed a brokered private placement for gross proceeds of $4.78M and a non-brokered portion of the offering for gross proceeds of approximately $1.47M, for total aggregate gross proceeds to the company of $6.25M (Columba project, Chihuahua). ON RESOURCES AND DEVELOPMENT, Altaley announced positive Pre-Feasibility Study and updated Mineral Resources and Reserves at its Tahuehueto project, Durango. Capitan Mining released results from its ongoing RC drilling program at its Cruz de Plata project (former referred as Peñoles) in Durango. Magna Gold released results from the first 22 of 43 drill holes completed at its Margarita project in Chihuahua. Prime Mining reported results from its ongoing drilling program at its Los Reyes project, Sinaloa. Avino announced drill results from the La Potosina area at its Avino project, Durango. Azucar Minerals reported that it will commence to drill test a new large lithocap alteration at its El Cobre project, Veracruz. Barksdale released results from its phase I, 5,000m drilling program at the Cerro Verde zone on its San Javier project, Sonora. Vizsla reported results from seven new drill holes collared on the Copala and Christiano veins within its Panuco project in Sinaloa. ON DEALS AND CORPORATE ISSUES, Ranchero Gold announced the appointments of two new members to its Board of Directors (Santa Daniela project, Sonora). Fabled announced that it has completed the planning of its phase 2 definition diamond drill program at its Santa Maria project in Chihuahua. ON SOCIAL RESPONSIBILITY, Fresnillo plc reported the return to face-to-face work in the state, and the opening of its outdoor activities. Grupo Mexico, within the framework of the International Mother Language Day, held activities related to the preservation and promotion of indigenous languages in the communities where it has a presence. Media Luna Mining Company (Torex Gold) ratified for the sixth consecutive year the collaboration agreement with fishing cooperatives in the Balsas River Basin in Guerrero.
ON MEXICO ISSUE
· No relevant news.
ON EXPLORATION
· Silver Spruce Resources Inc., filed environmental permits with the Secretariat of Natural Resources and Environment (SEMARNAT) to drill at their the Diamante, Mezquite and Jackie projects in Sonora. Approvals from SEMARNAT are expected to be obtained by late March, 2022.
· Canasil Resources Inc., provided a review of the results from its 2020-21 drill program on the Candy Vein at its Nora project. 13 drill holes were completed for a total of 3,296m to test the Candy vein over a strike distance of 500m and to a vertical depth of 250m below surface. All the holes encountered the mineralized vein with the highest true width x grade value on hole NRE-21-11 with 5.31 g/t Au and 336 g/t Ag (748 g/t AgEq) over a true width (TW) of 11.29m, giving a TW x grade value of 8,445 g/t AgEq x m. The drill results show that the Candy vein hosts consistently high grade gold and silver mineralization over appreciable widths. The Candy vein is known over 3km long but only 500m have been drill tested. Additionally, Canasil reported that systematic grid soil sampling over a 2km east-west and 3km north-south area covering the central zone of the project returned widespread silver, gold, copper, zinc and lead geochemical anomalies. “The gold and silver anomalies are particularly strong over the 3-Km strike extent of the Candy vein structure on the western side of the project area, as well as to the southwest and east of the Candy vein structure. A strong silver and gold anomaly also extends for 1.5 Km southwest from the location of the above high grade drill intercepts on the Candy vein and a breccia target has been identified to the south with potential for hosting bulk tonnage disseminated silver-gold mineralization”.
· Silver Wolf Exploration Ltd., provided a 2021 year in review and 2022 outlook on its Ana Maria property in Durango. The accomplished goals on 2021 include the completion of a NI-43-101 compliant technical report on the properties; an Aster satellite imaging survey, an airborne LiDAR and Hyperspectral imaging survey, an Airborne geophysical data survey, the application to expand the land package by 3x, and the completion of the 2021 mapping and sampling program to identify prospective areas and uncover previous historical workings. The company also provided a 2022 outlook that include the completion of the geophysical data interpretation, to define drill targets for the initial drill program, to apply and receive drill permits, to mobilize drilling equipment to execute an initial drill program, and to receive approval from the Mexican authorities on the expanded land application.
ON MINING
· Endeavour Silver Corp., reported consolidated full year 2021 production and financial results from their mining operations in México. The company mined 887,424 tonnes to produce 4.87M Oz Ag, and 42.3K Oz Au at a cash cost of USD $9.31 per Oz Ag, a total production cost of USD $14.70 per Oz Ag, and all-in sustaining cost (AISC) of USD $20.34 per Oz Ag. Endeavor sold 3.86 M Oz Ag and 39.1K Oz Au and reported revenues of USD $165.3M, adjust net earnings of USD $(-8.6M), mine operating earnings of USD $36.4M, EBIDTA of USD $54.9M, and working capital of USD $121.2M.
· First Majestic Silver Corp., announced Q4 and full year 2021 production and financial results from their Mexican mine operations. The below tables show the figures per separate mine for Q4, and full year 2021.
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No alt text provided for this image
First Majestic reported consolidated financial results (including Jerritt Canyon mine in USA). It reported revenues of USD $204.9M and USD $584.1M respectively for the periods Q4, and full year 2021; mine operating earnings of USD $40.4M and USD $101.4M respectively; loss earnings of USD $4M and USD $4.9M respectively; operating cash flows before working capital and taxes of USD $71.8M and USD $176.8M respectively; cash and cash equivalents of USD $237.9M in each period; working capital of USD $224.4M in each period; and free cash flow of USD $66.4M and USD ($16.9M) for Q4 and full year 2021 respectively.
· Gatos Silver Inc., presented Q4 and 2021 year-end production and financial results from its 70% owned Cerro Los Gatos operation in Chihuahua, and provided a corporate update. On Q4, 2021, the company milled 241,397 tonnes of 331 g/t Ag, 0.3 g/t Au, 2.2% Pb, and 3.9% Zn with metallurgical recoveries of 90%, 63%, 91% and 73% respectively, to produce 2.3M Oz Ag, 1.3K Oz Au, 10.2M Lb Pb, and 12.9M Lb Zn. Average realized price per Oz Ag, Oz Au, Lb Pb, and Lb Zn were USD $23.08, USD $1,804, USD $1.04, and USD $1.58 respectively. For the full year, Gatos milled 909,886 tonnes of 295 g/t Ag, 0.32 g/t Au, 2.3% Pb, and 3.9% Zn with metallurgical recoveries of 88%, 63%, 90% and 73% respectively, to produce 7.6M Oz Ag, 5.2K Oz Au, 39.8M Lb Pb, and 49.6M Lb Zn. Average realized price per Oz Ag, Oz Au, Lb Pb, and Lb Zn were USD $24.51, USD $1,804, USD $0.99, and USD $1.36 respectively. The company reported exploration expenses, operating costs and sales for the period Q4, 2021 of USD $0.3 , USD $3.8M, and USD &72.9M respectively, while for the full year 2021 of USD $1.7, USD $19.3M, and USD $251.2M respectively. Gatos provided its 2022 guidance and expects to produce between 8.5- 9M Oz Ag, 4-4.5K Oz Au, 36-40M Lb Pb, and 49-54M Lb Zn at AISC of USD $16.5-18.5 per payable silver on Co-product basis and USD $13-15 per payable silver on by-product basis.
· Gold Resource Corporation provided Q4 and year-end 2021 production and financial results from its Don David Gold mine in Oaxaca. On Q4, 2021 the company milled 135,398 tonnes of 1.93 g/t Au, 82 g/t Ag, 0.38% Cu, 2.2% Pb, and 4.8% Zn to produce 1.8K Oz Au, 287.8K Oz Ag, 907.2K Lb Cu, 4.6M Lb Pb, and 9.33M Lb Zn at average metal prices realized of USD $1,811 per Oz Au, USD $23.51 per Oz Ag, USD $9,768 per tonne of Cu, usd $2,339 per tonne of Pb, and USD $3,446 per tonne of Zn. On the full year 2021, Gatos milled 501,978 tonnes of 2.01 g/t Au, 80 g/t Ag, 0.39% Cu, 1.9% Pb, and 4.4% Zn to produce 22.6K Oz Au, 1.06M Oz Ag, 3.18M Lb Cu, 13-4M Lb Pb, and 30.3M Lb Zn at average metal prices realized of USD $1,796 per Oz Au, USD $25.06 per Oz Ag, USD $9,553 per tonne of Cu, USD $2,268 per tonne of Pb, and USD $3,091 per tonne of Zn. On Q4, 2021, the company reported sales for USD $38.6M, EBIDTA of USD $10.3M, and operating cost of USD $12.9M, while on the full year 2021 it reported USD $125.2M, USD $33.64M, and USD $34.78M respectively.
ON FINANCING
· Argonaut Gold Inc., sold 9.74M of common shares of Magna Gold at a price of CAD $0.70 per common share for aggregate gross proceeds of CAD $6.82M.
· Kootenay Silver Inc., closed a brokered private placement for gross proceeds of $4.78M and a non-brokered portion of the offering for gross proceeds of approximately $1.47M, for total aggregate gross proceeds to the company of $6.25M. Gross proceeds will be used for exploration activities, working capital and other general corporate purposes (Columba project, Chihuahua).
ON RESOURCES AND DEVELOPMENT
· Altaley Mining Corporation announced positive Pre-Feasibility Study (PFS) and updated Mineral Resources and Reserves at its Tahuehueto project, Durango. Highlights of the PFS include a throughput of 1,000 tonnes per day; a mine life of 10.9 years; a pre-tax net cash flow of USD $240.9M; a total capital cost of USD $56.9M; an all in sustaining cost (AISC) of USD $844 per Oz AuEq; a pre-tax Net Present Value (VNP) of USD $152.8M at 5% discount rate; an EBIDTA of USD $246.1M, and an internal rate of return (IRR) of 45%. The company also updated Mineral Resources and Reserves. It reported Proven+ Probable Reserves of 3.58M tonnes grading 2.55 g/t Au, 50 g/t Ag, 0.26% Cu, 1.1% Pb, and 1.9% Zn with metallurgical recoveries of 87%, 85%, 85%, 85% and 68& respectively to contain 294K Oz Au, 5.7M Oz Ag, 20.55M Lb Cu, 87.36M Lb Pb, and 151.6M Lb Zn. Altaley also reported Measured +Indicated Resources of 6.26M tonnes grading 2.11 g/t Au, 47 g/t Ag, 0.27% Cu, 0.9% Pb, and 2% Zn (4.47 g/t AuEq) to contain 415K Oz Au, 9.4M Oz Ag, 36.6M Lb Cu, 123.9M Lb Pb, and 273.3M Lb Zn (900K Oz AuEq); and Indicated Resources of 918K tonnes grading 1.02 g/t Au, 29 g/t Ag, 0.15% Cu, 1.2% Pb, and 2% Zn (3.05 g/t AuEq) to contain 30K Oz Au, 840K Oz Ag, 3M Lb Cu, 23.5M Lb Pb, and 39.7M Lb Zn (90K Oz AuEq).
· Capitan Mining Inc., released results from its ongoing RC drilling program at its Cruz de Plata project (former referred as Peñoles) in Durango. Hole 21-JMRC03 drilled on Jesus Maria Vein system returned 0.37 g/t Au, 177 g/t Ag, 3.2% Pb, and 3.6% Zn (435 g/t AgEq) over 10.7m, including 0.71 g/t Au, 290 g/t Ag, 6.8% Pb, 6.6% Zn (798 g/t AgEq) over 11.5m, including 0.45 g/t Au, 258 g/t Ag, 4.7% Pb, and 5% Zn (620 g/t AgEq) over 1.5m, including 0.27 g/t Au, 370 g/t Ag, 5.6% Pb, and 8% Zn (860 g/t AgEq) over 1.5m, including 0.55 g/t Au, 122 g/t Ag, 2.6% Pb, and 3% Zn (358 g/t AgEq) over 1.5m, including 0.51 g/t Au, 281 g/t Ag, 5.9% Pb, and 3.8% Zn (641 g/t AgEq) over 1.5m. Assays are still pending for 11 RC holes out of 15 completed.
· Magna Gold Corp., released results from the first 22 of 43 drill holes completed at its Margarita project in Chihuahua. Drill highlights include hole MAR-21-002 with 139 g/t Ag, 0.1% Pb and 0.6% Zn over 46.8m, including 801 g/t Ag, 0.5% Pb, and 0.8% Zn over 2.85m; hole MAR-21-004 with 113 g/t Ag, 0.03% Pb, and 0.1% Zn over 32.55m, including 300 g/t Ag, 0.6% Pb, and 0.2% Zn over 6m; hole MAR-21-005 with 133 g/t Ag, 0.05% Pb and 0.2% Zn over 39.5m, including 540 g/t Ag, 0.01% Pb, and 0.4% Zn over 1.85m, and 301 g/t Ag, 0.06% Pb, and 0.1% Zn over 5.1m; hole MAR-21-016 with 157 g/t Ag, 0.5% Pb, and 1.1% Zn over 29.5m, including 0.31 g/t Au, 821 g/t Ag, 2.4% Pb, and 5.6% Zn over 3.9m; hole MAR-21-020 with 156 g/t Ag, 0.1% Pb, and 0.5% Zn over 55.95m, including 498 g/t Ag, 0.4% Pb, and 1.6% Zn over 12.8m;and hole MAR-21-022 with 127 g/t Ag, 0.1% Pb, and 0.3% Zn over 19.2m, including 0.3 g/t Au, 567 g/t Ag, 0.4% Pb, and 1.4% Zn over 3.55m, and 110 g/t Ag, 0.4% Pb, and 0.6% Zn over 16.55m, including 0.18 g/t Au, 440 g/t Ag, 1.6% Pb, and 1.8% Zn over 3m. Magna plans to release a maiden resource toward the end of the Q1, 2022. This resource estimate will lead to the completion of the first ever preliminary economic assessment (PEA) shortly thereafter.
· Prime Mining Corp., reported results from its ongoing drilling program at Guadalupe East on its Los Reyes project, Sinaloa. Hole 22GE-33 intersected multiple mineralized intervals. This hole intersected 11.60 g/t Au and 219 g/t Ag over a true width (TW) of 1.20m, then a 3.7m stope, to continue with 3.33 g/t Au and 115 g/t Ag over a TW of 29.29m, including 2.68 g/t Au, and 93 g/t Ag over a TW of 6.10m, and including 6.57 g/t Au and 137 g/t Ag over a TW of 9m, including 30.9 g/t Au and 605 g/t Ag over a TW of 1.20m, and including 3.67 g/t Au and 204 g/t Ag over a TW of 10.40m, including 8.39 g/t Au and 321 g/t Ag over a TW of 2.10m. This hole is located on the west side of the Guadalupe East conceptual open pit. There are currently 15 pending drill holes at Guadalupe East out of a total of 49 completed.
· Avino Silver & Gold Mines Ltd., announced drill results from its 2,400m drilling program conducted in 2021 on the La Potosina area at its Avino project, Durango. Highlights include hole LP-21-06 with 0.09 g/t Au, 270 g/t Ag, 0.25% Cu, 0.9% Pb, and 2.5% Zn (463 g/t AgEq) over a true width (TW) of 1.7m, including 0.09 g/t Au, 1,257 g/t Ag, 0.48% Cu, 2.8% Pb, and 4.4% Zn (1,641 g/t AgEq) over a TW of 0.20m, including 0.08 g/t Au, 510 g/t Ag, 0.6% Cu, 2.2% Pb, and 5% Zn (918 g/t AgEq) over a TW of 0.35m, including 0.07 g/t Au, 406 g/t Ag, 0.44% Cu, 1.3% Pb, and 4.2% Zn (717 g/t AgEq) over a TW of 0.45m; and hole LP-21-007 with 0.4 g/t Au, 617 g/t Ag, 0.1% Pb, and 0.2% Zn (668 g/t AgEq) over a TW of 2.87m. On 2022, Avino plans include an additional 40 holes with 6,000m of drilling to test the continuity of the vein at elevations above 2,100m while looking for favorable dilation structures in the northwest.
· Azucar Minerals Ltd., reported that it will commence to drill test a new large lithocap alteration at its El Cobre project, Veracruz. A mineral mapping study conducted on this area defined a strong alteration signature interpreted to reflect the surface zoning of an underlying porphyry body.
· Barksdale Resources Corp., released results from its phase I, 5,000m drilling program at the Cerro Verde zone on its San Javier project, Sonora. Drilling highlights include hole SJ21-31 with 0.05% Cu and 1.11 g/t Au over 36m, including 0.03% Cu and 1.71 g/t Au over 15m, and 0.06% Cu and 1.89 g/t Au over 3m, plus 0.54% Cu over 48m, including 1.35% Cu over 6m; and hole SJ21-35 with 0.24% Cu over 6m, plus 0.22% Cu over 12m, plus 0.35% Cu over 15m. Drilling results confirmed and expanded the footprint of the Cerro Verde Zone.
· Fabled Silver Gold Corp., announced that it has completed the planning of its phase 2 definition diamond drill program at its Santa Maria project in Chihuahua as well as a plan to drill test other structures in the property. This second phase will consist of a minimum of 5,000m for definition drilling, and drill test possible structural dilation zones on the Northeast and secondary mineralized structures, identified after performing a property wide mapping & sampling as well as an structural interpretation. “Once the field work and observations have been completed the phase 2 exploration first priority drill targets will be defined in the coming weeks”.
· Vizsla Silver Corp., reported results from seven new drill holes collared on the Copala and Christiano veins within its Panuco project in Sinaloa. Drill highlights include hole CS-21-116 with 97 g/t Ag and 0.55 g/t Au (141 g/t AgEq) over a true width (TW) of 2.4m, and 1,559 g/t Ag and 7.29 g/t Au (2,142 g/t AgEq) over a TW of 7.81m, including 2,728 g/t Ag and 13.10 g/t Au (3,775 g/t AgEq) over a TW of 2.60m, and 1,531 g/t Ag and 6.94 g/t Au (2,086 g/t AgEq) over a TW of 3.14m; hole CS-21-123 with 248 g/t Ag and 2.03 g/t Au (410 g/t AgEq) over a TW of 14.45m, including 1,237 g/t Ag and 10.53 g/t Au (2,078 g/t AgEq) over a TW of 2.09m, and including 197 g/t Ag and 1.45 g/t Au (312 g/t AgEq) over a TW of 2.68m; hole CS-21-115 with 1,900 g/t Ag and 11.09 g/t Au (2,787 g/t AgEq) over a TW of 1.21m; and hole CS-21-112 with 682 g/t Ag and 5.51 g/t Au (1,122 g/t AgEq) over a TW of 1.73m, including 973 g/t Ag and 7.97 g/t Au (1,610 g/t AgEq) over a TW of 1.1m. The Copala Vein has now been tested with 17 holes with mineralization open in all directions.
ON DEALS AND CORPORATE ISSUES
· Ranchero Gold Corp., announced the appointments of two new members to its Board of Directors, and the addition of Ken Balleweg to its Technical Advisory team (Santa Daniela project, Sonora).
ON SOCIAL RESPONSIBILITY
· Fresnillo plc reported the return to face-to-face work in the state, and the opening of its outdoor activities, taking into account the hygiene and healthy distance measures promoted by the health authorities, as well as the presentation of the vaccination certificate for access the corresponding facilities. For Fresnillo plc, physical activation represents one of the stronger pillars for the people development.
· Grupo Mexico, within the framework of the International Mother Language Day, held activities related to the preservation and promotion of indigenous languages in the communities where it has a presence.
· Media Luna Mining Company (Torex Gold) ratified for the sixth consecutive year the collaboration agreement with fishing cooperatives in the Balsas River Basin in Guerrero. F is the second most important economic activity in the mining corridor, so the commitment is to help to consolidate economic activities in the communities.
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