Canada’s McEwen Mining 2018 production exceeds guidance

Canadian precious metals producer McEwen Mining (TSX, NYSE:MUX) on Tuesday posted 2018 production results that exceeded expectations, with gold equivalent output climbing 15% from 152,329 ounces in 2017 to 175,561 ounces last year.

Full-year production included 135,124 ounces of gold, up 23% when compared to the previous year, and 3.03 million ounces of silver, or 4.5% less than in 2017.

Output at the Toronto-based miner 100%-owned Black Fox mine in Canada totalled 48,848 gold equivalent ounces, in line with guidance of 48K gold equiv. ounces. Production at the company’s 100%-owned El Gallo project in Mexico, in turn, reached of 39,106 gold. equiv. ounces, topping guidance of about 32,000 ounces.

El Gallo mine, in Mexico, had one of the best performances, producing 39,106 gold-equivalent ounces, more than the 32,000 expected for 2018.

McEwen said it continued to evaluate the potential of constructing a new mine and mill at El Gallo. A feasibility study for the project, dubbed Fenix, is expected to be completed in the first half of 2019.

The miner also reported construction at Gold Bar, in Nevada, US, was near completion and on schedule for inaugural gold production in the current quarter.

In the last three years, Rob McEwen — one of the gold’s industry’s best-known bulls — has been aggressively working on expanding his company, which already has producing mines in Mexico, Argentina and most recently also in Ontario, Canada.

His goal is to take McEwen Mining to the Standard & Poor's 500 Index, which groups the 500 largest companies that list either in the NYSE or NASDAQ.

In 2017, the Canadian resources magnate McEwen told MINING.com he was giving himself two-to-three years to make that happen through a combination of organic growth in production as well as mergers and acquisitions.

Shortly after, it acquired junior exploration company Lexam VG, which gave McEwen access to mineral properties in advanced exploration stage in the heart of Timmins Gold Camp, northern Ontario. The same year it completed the acquisition of Black Fox mine and, by December 2017, it announced it was speeding up exploration activities at its newly acquired properties near Timmins, Ontario.

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Torex reports record production despite challenging situation

Canada's Torex Gold Resources (TSX:TXG) issued a media report stating that, in 2018, it produced 354,000 ounces of gold at its El Limón Guajes Complex, or ELG, located in southwest Mexico. From January to September, the company produced 246,309 ounces of gold in doré, with 11,322 additional ounces gold in carbon fines. The company also reported selling 348,000 ounces of the yellow metal.

According to Toronto-based miner, the numbers show record production and sales, which was almost unexpected given that the mine experienced a series of issues last year, including a five-month blockade led by Los Mineros Union.

"Achieving a production record at the top end of production guidance is a credit to the quality of the asset and the quality of the corporate and site teams who managed through significant complexity in 2018. Safety and environmental protection performance were also excellent. In Q4/18 plant throughput averaged 13k/t so there is some work left to do to get to the design level of 14kt/d. Sub-Sill produced at above design rates of 850 t/d in December," Fred Stanford, President and CEO of Torex, wrote in the report.

According to Stanford, 2018 was also a good year on the growth front, as the firm advanced successful exploration/infill drill programs and introduced new technology into its mining operations.

Such growth, the CEO said, allowed Torex to forecast production guidance of 430,000 ounces for 2019, with the bulk of the production expected for the second half of the year.

The ELG complex, located in the state of Guerrero and considered one of the richest gold deposits in Mexico, is comprised of the El Limón, Guajes and El Limón Sur open pits, the El Limón Guajes underground mine including zones referred to as Sub-Sill and El Limón Deep, and the processing plant and related infrastructure, as well as the Media Luna deposit, which is an early stage development project.

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Company Updates From Management – Thu 10 Jan, 2019

Goldplay Exploration – Outlining The Upcoming Resource and Addressing Questions On Work Commitments

Over the past couple weeks I received a couple questions asking about the upcoming resource and strategy for Goldplay Exploration (TSX.V:GPLY & OTCQB:GLYXF). I introduced this relatively new Company at the tail end of last year when they were raising money to explore the San Marcial project in Mexico.

Marcio Fonseca, President and CEO joined me today to address the questions. I ask if the resource is still on track for this month as well as the work commitments on the project. This all ties into the overall strategy for this year as the Company moves the project forward and looks to make a new discovery.

Click here to visit the Goldplay Exploration website.

Click here to listen to the interview that presents a more comprehensive overview of the Company.

Silvercrest nears new resource at Las Chispas

Silvercrest Metals (TSXV: SIL; NYSE: SILV) continues cutting high grade mineralization at its Las Chispas silver property in Sonora, Mexico.

The latest results from a phase three infill drill program at the property included 9.3 metres grading 39.66 grams gold and 3,361 grams silver, or 6,336 grams silver equivalent, from 194 metres downhole and 2.4 metres at 4.3 grams gold and 1,571.5 grams silver, or 1,894 grams silver equivalent, from 319 metres downhole.

The results come from two of 13 new infill holes at the Area 51 zone of the project’s Babicanora vein. The company also reported seven other infill holes from the project’s Babicanora Central zone and Babicanora Footwall and Hangingwall veins.

The company has so far drilled 39 phase three infill holes at Las Chispas; 28 of them in Area 51. It currently has nine drills turning at the project, focussed both on upgrading inferred resources to the measured and indicated categories and expanding mineralization. The company hopes to update the Las Chispas resource estimate in 2019’s first quarter.

As of a September 2018 update, the project contains 4.3 million inferred tonnes grading 3.68 grams gold and 347 grams silver, or 623 grams silver equivalent, for 511,500 oz. gold and 48.29 million oz. silver, or 86.7 million oz. silver equivalent.

The company is also working on a preliminary economic assessment at Las Chispas. It’s breaking ground for the Area 51 decline, testing metallurgy, drilling wells for water and permitting.

Shares of Silvercrest are currently trading at $3.94 with a 52-week range of $1.75 to $4.05. The company has a $336 million market capitalization.

This article originally appeared in The Northern Miner.

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San Marco gets positive results from exploration program in Mexico

San Marco Resources (TSXV: SMN) announced that, following the completion of a first-phase of exploration and evaluation, its experts were able to confirm the existence of a porphyry copper-molybdenum-gold system at the Espíritu SMR property in the Sonora state of northern Mexico.

The 4697-hectare Espíritu SMR property is located approximately 15 kilometres east of the town of Sahuaripa and is 100% owned by San Marco. Historical drill hole assay data show indications of widespread gold and copper mineralization.

According to the company, selected historical drilling info reveals that results for Drill Hole ESP-02-09 at 48.00 m are of 0.19 g/ton Au, 0.10% Cu, 2.0 g/ton Ag, including 1.50 m @ 1.80 g/ton Au, 0.07% Cu, 2.0 g/ton Ag. Meanwhile, Drill Hole ESP-06-10 yielded at 220.50 m 0.14 g/ton Au, 0.15% Cu, 1.1 g/ton Ag.

According to the Mexican Geological Survey, Espiritu SMR covers portions of the San Felipe mineralized zone, a group of epithermal to mesothermal (gold, silver and lead) vein systems.

In a press release, the Vancouver-based miner said that the recent exploration program, which was led by consulting geologist Luciano Bocanegra, confirmed that the multi-stage copper-moly-gold porphyry system has a minimum alteration footprint measuring 2.5 km x 1.2 km, open in multiple directions.

The program also helped determine that copper mineralization may be preserved at depth within the shallower part of the porphyry system and that the best copper mineralization in surface and drill core samples is related to intense quartz-chalcopyrite-pyrite stockwork in potassic altered rocks.

San Marco said the campaign also contributed to identifying previously unrecognized vectoring tools that can assist in targeting potential areas of best-grade mineralization to depth and buried targets under post mineral rocks.

"We are pleased with the results and interpretations of this first phase of work at Espiritu SMR," said the firm's CEO Chris T. Grijalva in the media brief. "This extensive interpretive work and recent re-mapping of the project area has better determined the surface extent of the porphyry system(s) and evidenced several of these zones remain open for ongoing exploration. We are now utilizing this new information, interpretations and recommendations as a means of optimizing and streamlining our future work which is expected to include the recommended magnetic and ZTEM surveys to assist in locating a deeper source of the mineralization in advance of possible drilling at the project."

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Pan American Silver shareholders approve Tahoe Resources acquisition

Pan American Silver (TSX: PAAS) announced Tuesday that shareholders overwhelmingly (98%) approved the resolution to increase the maximum number of authorized shares of Pan American and the resolution to issue up to 72,533,152 Pan American shares in connection with the proposed plan of arrangement that Pan American will acquire all of the issued and outstanding shares of Tahoe Resources.

Tahoe shareholders also approved the arrangement, which is subject to approval by the Supreme Court of British Columbia and is expected to be completed on or about February 26, 2019, following authorization from the Mexican Federal Economic Competition Commission.

"We are very pleased to see strong shareholder support for our acquisition of Tahoe," said Michael Steinmann, president and CEO of Pan American in a media statement. "This is a logical combination that provides investors with exposure to a geographically diversified portfolio of some of the world's best silver mining assets."

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Vancouver miners merge to lead exploration in Mexico

Defiance Silver Corp (TSX-V: DEF) and ValOro Resources (TSX-V: VRO) have just created a combined company that keeps the name Defiance Silver Corp., following a friendly merger under the Business Corporations Act of the Canadian province of British Columbia.

In a media statement, the Vancouver-based miners describe Defiance Silver Corp as “a leading diversified explorer with an advanced portfolio of Mexican silver and gold projects.”

The new firm is trading under the symbol DEF, has approximately 120.07 million common shares outstanding, of which shareholders of Defiance own 86.07% and the former shareholders of ValOro own approximately 13.92%.

From now on, the new company will be in charge of the works ValOro was advancing at its 100%-owned Tepal gold/copper project in the western Mexican state of Michoacán. The property, where ValOro has carried out aggressive exploration, resource expansion, and infill drilling programs, is comprised of five concessions that occupy some 1,400 hectares.

San Acacio deposit in Mexico. Photo by Defiance Silver.

“We are pleased with the closing of the transaction and wish to thank all the participants and shareholders. With two drill-ready projects in Mexico and recent news indicating the new Mexican government will be supportive of mining, we look forward to a dynamic and exciting 2019,” Dunham Craig, former President and CEO of ValOro, said in the media brief.

Previous to the merger, Defiance Silver was also advancing projects in the Latin American country. Its focus has been in expanding the San Acacio deposit, located in the Zacatecas Silver District of central Mexico.

“We look forward with a shared common vision to unlock further exploration potential at the San Acacio silver project and Tepal gold project. Given the rise in precious metal prices and with these two advanced projects, we believe the time is right to unlock their value to shareholders,” Peter J. Hawley, President and CEO of Defiance, said.

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Defiance Silver and ValOro Resources stocks soar on merger

Comments from Dudley Pierce Baker, I would expect to see many more consolidations of the small exploration companies in 2019. I look forward to visiting with Defiance Silver at the Mexico Mining Conference (April 2 – 4) in Mazatlan, Mexico From our friends at Mining.com Vancouver-based juniors Defiance Silver Corp. (TSXV: DEF) and ValOro Resources Inc. (TSXV: VRO) stocks soared today, following yesterday’s friendly merger announcement. The merger will be completed effective 11:59 pm on Monday, Dec. 31, 2018 and will create an advanced portfolio of Mexico-based silver and gold projects, the companies said in a joint release. The combined company will continue under the name Defiance Silver Corp. and trading symbol DEF. It will have 120m common shares outstanding, of which shareholders of Defiance will own 86.07% and the former shareholders of ValOro will own approximately 13.92%. “We are pleased to complete the merger with ValOro and look forward … Continue reading

Defiance Silver and ValOro Resources stocks soar on merger

Vancouver-based juniors Defiance Silver Corp. (TSXV: DEF) and ValOro Resources Inc. (TSXV: VRO) stocks soared today, following yesterday’s friendly merger announcement.

The merger will be completed effective 11:59 pm on Monday, Dec. 31, 2018 and will create a  an advanced portfolio of Mexico-based silver and gold projects, the company said.

The combined company will continue under the name of Defiance Silver Corp. and trading symbol DEF. It will have 120.07 million common shares outstanding, of which shareholders of Defiance will own 86.07% and the former shareholders of ValOro will own approximately 13.92%.

Peter J. Hawley, President and CEO of Defiance, stated "We are pleased to complete the merger with ValOro and look forward with a shared common vision to unlock further exploration potential at the San Acacio silver project and Tepal gold project,” Defiance President and CEO Peter Hawley said in a media statement.  The ValOro Shares are expected to be de-listed from the TSX Venture Exchange after the close of trading on Dec. 31, 2018.

At market close on Friday, Defiance Silver’s stock had jumped 25% and ValOro Resources’ stock was up 33%.

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Vancouver’s ePower Metals buys Magenta cobalt project in Mexico

ePower Metals (TSXV: EPWR) announced it has entered into a definitive agreement to buy Exploracion Auramex S.A. de C.V. and its Magenta cobalt project from Bowering Projects for $150,000 and 2,500,000 common shares.

In a press release, ePower Metals explained that the Magenta project is located in Sinaloa, northwestern Mexico, and consists of five claims totaling 2,274 hectares. The claims are on privately owned ranch land and four of them are in good standing while one, the Magenta #2, is under appeal of cancelation.

None of the claims, however, is subject to royalties.

According to ePower, Magenta hosts numerous high-grade cobalt/gold/silver/nickel vein and skarn style deposits. The miner reports that the La Prieta showing has seen the most development with two adits and one trench and several drill holes.

“Historic sampling by Nordic Gold at La Prieta returned results of 5.54% Co, 5.8 oz/T Au, and 6.5 oz/T Ag, over 0.61 m in Zone #1; and 3.27% Co, 0.26 oz/T Au, and 1.7 oz/T Ag, over 0.5 m in Zone #2. Cobalt mineralization was traced for 325m along strike of Zone #1,” the media brief reads.

ePower Metals also conducted sampling in Zone 2 and obtained results of 0.39% Co, 0.42 oz/T Au, 2.0 oz/T Ag and 0.36% Ni, over 1.6m and 4.52% Co, 1.49 oz/T Au, 6.08 oz/T Ag and 2.80% Ni in a grab sample in a different horizon.

“The mineralized system is quite extensive, but it is poorly understood. The company believes there is great potential for expansion and definition of a meaningful cobalt/precious metals resource and we look forward to getting to work on Magenta,” Michael Collins, President and CEO of ePower Metals, said in the media statement.

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