Covid mine suspensions hit Endeavour Silver Q2 output

The mandatory suspension of Mexico’s mines in April and May is evident in Endeavour Silver’s second-quarter production results, with the Toronto- and New York-listed miner on Thursday reporting a 42% decrease in silver-equivalent production. The company produced 1.06-million silver-equivalent ounces in the March 2020 quarter, comprising 596 545 oz of silver and 5 817 oz of gold. The Guanacevi, Bolanitos and El Compas mines were suspended on April 1, to halt the spread of Covid-19. In late May, mining was deemed to be essential activity by the Mexican authorities, which allowed mining operations to start up with health protocols in place.

Vizsla Drills 2,889 g/t Silver and 107.9 g/t Gold Over 3.7 Metres Within 1,808 g/t Silver and 66.8 g/t Gold Over 6.0 Metres at Panuco, Mexico

Vizsla Resources Corp. (TSX-V: VZLA) (“Vizsla” or the “Company”) is pleased to announce additional drilling results from the Napoleon Vein Corridor at the Panuco silver-gold project in Mexico. A total of eleven holes have been completed to date at Napoleon with results returned for the mineralized intervals of four holes.  High grade intercepts have been returned.  The Company has two drill rigs operating on the project testing multiple targets.

Drilling Highlights


8,078 g/t silver equivalent (1,808.2 grams per tonne (“g/t”) silver, 66.8 g/t gold, 2.99% lead and 3.30 % zinc) over 6.0 metres (“m”) from 69.0 including;
12,992 g/t silver equivalent (2,889.2 g/t silver, 107.9 g/t gold, 4.80% lead and 4.56 % zinc) over 3.7m from 69.5m including;
21,034 g/t silver equivalent (2,240.0 g/t silver, 199.0 g/t gold, 12.85% lead and 3.27% zinc) over 0.85m from 72.35m


284 g/t silver equivalent (134.3 g/t silver, 1.34 g/t gold, 0.49% lead and 0.91% zinc) over 10.65m from 112.35m including;
1,201 g/t silver equivalent (719.0 g/t silver, 5.10 g/t gold, 0.71% lead and 1.42% zinc) over 1.0m from 118.6m

Note: All numbers are rounded and widths represent downhole lengths. True widths are estimated at between 51-71% of downhole lengths. Silver equivalent is calculated using the following formula: Silver-equivalent = ((Au_g/t x 52.48) + (Ag_g/t x 0.5289) + (Pb_ppm x 0.0013) + (Zn_ppm x 0.0013)) / 0.5627). Metal price assumptions are $17.50 g/t silver, $1,700 g/t gold, $0.75 pound lead and $0.85 pound zinc, recoveries assumptions are 96% gold, 94% silver, 78% lead and 70% zinc based on similar deposit types.Vizlsa is reporting as silver equivalent due to the average ratio of metal value in the Panuco district being 60:40 silver to gold.  The company’s geological interpretation of the results is that these high grades in NP-20-07 is in the very core of the mineralization and broader drilling is reverting to the silver dominant nature similar to observed in holes NP-20-04 and NP-20-05.

Vizsla President and CEO, Michael Konnert, commented: “We are thrilled with these high grade results as they support our understanding that the Napoleon vein system remains open along trend to the north and south and at depth. With a 14,500 metre drill program underway, The Company will continue to drill the Napoleon vein system and the multiple other drill targets in vein systems across the Panuco district. Our second rig is currently turning at Cordon del Oro. Being fully-funded, Vizsla intends to provide steady drilling news flow over the summer months.”

The Napoleon Vein Corridor is located almost entirely on concessions optioned from Rio Panuco which Vizsla has the right to purchase 100% of including the 500 tonne per day El Coco mill, tailings facility, roads, power and permits for a total of US$23,000,000.

Complete table of drillhole intersections
Table 1:            Downhole drill intersections from the holes completed at the Napoleon Vein, Panuco.

Note: All numbers are rounded and widths represent downhole lengths. True widths are estimated at between 51-71% of downhole lengths. Silver equivalent is calculated using the following formula: Silver-equivalent = ((Au_g/t x 52.48) + (Ag_g/t x 0.5289) + (Pb_ppm x 0.0013) + (Zn_ppm x 0.0013)) / 0.5627). Metal price assumptions are $17.50 g/t silver, $1,700 g/t gold, $0.75 pound lead and $0.85 pound zinc, recoveries assumptions are 96% gold, 94% silver, 78% lead and 70% zinc based on similar deposit types. The company is disclosing results on a silver equivalent basis due to the overall silver dominant nature of mineralization at the Panuco project.

Figure 1: Plan map showing location of drillholes, mapped veins and surface and underground sampling along the Napoleon vein. Inset shows detail of drill collar locations.

Drilling detail

The Napoleon corridor is hosted in weakly magnetic fine-grained diorite and trends approximately north – south.  The structure hosts two main quartz veins that are separated by some 10 to 20 metres and appears to dip very steeply to sub-vertical.  So far it has been mapped along strike for over 2,000 m.  Between the two main veins are a series of smaller splay veins with variable orientations, that are related to dilation along the structure under strike slip movement.

The two main veins are multi-episodal quartz veins, with sections of massive white to greyish quartz as well as local brecciation with clasts of grey quartz, white vein quartz and / or wallrock pieces.  The greyish quartz is grey due to the presence of the very fine-grained silver rich sulphide mineral argentite.  A later breccia cuts these earlier phases comprising grey quartz supporting polymictic clasts of grey and white quartz along with strong chlorite and common to abundant, fine to medium grained pyrite, sphalerite and galena.

Figure 2: Cross section through holes NP-20-06, NP-20-07 and NP-20-08.

Hole NP-20-06 is located 60m to the north of NP-20-03 and intersected the old mine workings at the target depth.  A narrow interval of un-mined vein is awaiting assay results.  Further down the hole (to the west) a narrow well mineralized vein was intersected at 125.1m.

Hole NP-20-07 was a steep hole that tested the main hanging wall vein 20m downdip from hole NP-20-06.  The vein is dark grey with a semi-massive sulphide mineralization and little white or grey quartz.  Further down the hole a second mineralized vein was intersected.  This bonanza grade material was likely the focus of historical mining within the now inaccessible Napoleon mine.

Hole NP-20-08 was drilled steeper again and intersected the main vein and multiple additional veins into the footwall of the Napoleon structural corridor.  Assays are pending for this hole.

Holes NP-20-09 and NP-20-10 were drilled off section to the south and north (of holes NP-20-06, -07 and -08), respectively and intersected veining.  Lastly Hole NP-20-11 has just been completed to the south of the discovery hole NP-20-02.  It intersected the main vein. These holes are being logged and sampled prior to shipping for assay.

Drilling has intersected the Napoleon vein over 150m of strike and it remains open to the north, south and at depth.

Table 2: Drill hole details. Coordinates in WGS84, Zone 13.

About the Panuco project

Vizsla has an option to acquire 100% of the newly-consolidated 9,386.5 Ha Panuco district in southern Sinaloa, Mexico, near the city of Mazatlán.  The option allows for the acquisition of over 75 km of total vein extent, a 500 tpd mill, 35 kms of underground mines, tailings facilities, roads, power and permits.

The district contains intermediate to low sulfidation epithermal silver and gold deposits related to siliceous volcanism and crustal extension in the Oligocene and Miocene. Host rocks are mainly continental volcanic rocks correlated to the Tarahumara Formation.

Quality Assurance / Quality Control

Drill core and rock samples were shipped to ALS Limited in Zacatecas, Zacatecas, Mexico and in North Vancouver, B.C. Canada for sample preparation and for analysis at the ALS laboratory in North Vancouver.  The ALS Zacatecas and North Vancouver facilities are ISO 9001 and ISO/IEC 17025 certified. Silver and base metals were analyzed using a four-acid digestion with an ICP finish and gold was assayed by 30-gram fire assay with atomic absorption (“AA”) spectroscopy finish. Overlimits analyses for silver, lead and zinc were re-assayed using an ore-grade four-acid digestion with AA finish.

Control samples comprising certified reference samples, duplicates and blank samples were systematically inserted into the sample stream and analyzed as part of the Company’s quality assurance / quality control protocol.

Qualified Person

Panuco’s disclosure of technical or scientific information in this press release has been reviewed and approved by Stewart Harris, P.Geo., an independent consultant for the Company. Mr. Harris is a Qualified Person as defined under the terms of National Instrument 43-101.

Contact Information: For more information and to sign-up to the mailing list, please contact:

Michael Konnert, President and Chief Executive Officer

Tel: (604) 838-4327


Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.


This news release includes certain “Forward‐Looking Statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and “forward‐looking information” under applicable Canadian securities laws. When used in this news release, the words “anticipate”, “believe”, “estimate”, “expect”, “target”, “plan”, “forecast”, “may”, “would”, “could”, “schedule” and similar words or expressions, identify forward‐looking statements or information. These forward‐looking statements or information relate to, among other things: the development of Panuco, including drilling activities; future mineral exploration, development and production; and completion of a maiden drilling program.

Forward‐looking statements and forward‐looking information relating to any future mineral production, liquidity, enhanced value and capital markets profile of Vizsla, future growth potential for Vizsla and its business, and future exploration plans are based on management’s reasonable assumptions, estimates, expectations, analyses and opinions, which are based on management’s experience and perception of trends, current conditions and expected developments, and other factors that management believes are relevant and reasonable in the circumstances, but which may prove to be incorrect. Assumptions have been made regarding, among other things, the price of silver, gold and other metals; no escalation in the severity of the COVID-19 pandemic; costs of exploration and development; the estimated costs of development of exploration projects; Vizsla’s ability to operate in a safe and effective manner and its ability to obtain financing on reasonable terms.

These statements reflect Vizsla’s respective current views with respect to future events and are necessarily based upon a number of other assumptions and estimates that, while considered reasonable by management, are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors, both known and unknown, could cause actual results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward‐looking statements or forward-looking information and Vizsla has made assumptions and estimates based on or related to many of these factors. Such factors include, without limitation: the Company’s dependence on one mineral project; precious metals price volatility; risks associated with the conduct of the Company’s mining activities in Mexico; regulatory, consent or permitting delays; risks relating to reliance on the Company’s management team and outside contractors; risks regarding mineral resources and reserves; the Company’s inability to obtain insurance to cover all risks, on a commercially reasonable basis or at all; currency fluctuations; risks regarding the failure to generate sufficient cash flow from operations; risks relating to project financing and equity issuances; risks and unknowns inherent in all mining projects, including the inaccuracy of reserves and resources, metallurgical recoveries and capital and operating costs of such projects; contests over title to properties, particularly title to undeveloped properties; laws and regulations governing the environment, health and safety; the ability of the communities in which the Company operates to manage and cope with the implications of COVID-19; the economic and financial implications of COVID-19 to the Company; operating or technical difficulties in connection with mining or development activities; employee relations, labour unrest or unavailability; the Company’s interactions with surrounding communities and artisanal miners; the Company’s ability to successfully integrate acquired assets; the speculative nature of exploration and development, including the risks of diminishing quantities or grades of reserves; stock market volatility; conflicts of interest among certain directors and officers; lack of liquidity for shareholders of the Company; litigation risk; and the factors identified under the caption “Risk Factors” in Vizsla’s management discussion and analysis. Readers are cautioned against attributing undue certainty to forward‐looking statements or forward-looking information. Although Vizsla has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be anticipated, estimated or intended. Vizsla does not intend, and does not assume any obligation, to update these forward‐looking statements or forward-looking information to reflect changes in assumptions or changes in circumstances or any other events affecting such statements or information, other than as required by applicable law

Brixton Metals drills high-grade silver, gold and copper at Hog Heaven

Brixton Metals Corp. [BBB-TSXV; BBBXF-OTCQB] announced initial drill results from the maiden drill program at its wholly-owned Hog Heaven Project 55 miles south-southwest of Kallispell, Montana, which returned multiple intervals of high-grade silver, gold and copper mineralization. Seven holes totalling 1,400.35 metres were drilled.

Gary R. Thompson, Chairman and CEO, stated: “We are pleased to have successfully completed our maiden drill program at the Hog Heaven Project. The new strategic approach under Brixton is to define a compliant resource on the high-grade silver-gold-copper targets as a near-term underground operation versus the historic mine plan, which was an open-pit mine plan. Based on these results and our preliminary interpretation of the remaining holes, we plan to complete a Phase 2 exploration program later this summer.”

The purpose of the drilling program was to validate historical results from the 1970s and 1980s at the Main mine area. High-grade mineralization was encountered in all the holes.

Drill hole HH20-02 intersected a broad 224.85-metre zone of mineralization for 78.16 g/t silver, 0.66 g/t gold and 0.24% copper (75.07-299.92 m), including 5.48 m of 445.79 g/t Ag, 1.41 g/t Au and 1.50% Cu; 2.13 m of 917.36 g/t Ag, two g/t Au and 3.06% Cu; 53.49 m of 165.9 g/t Ag, 1.28 g/t Au and 0.55% Cu; 13.56 m of 185.8 g/t Ag, 2.24 g/t Au and 0.76% Cu; and 1.37 m of 1,750 g/t Ag, 5.39 g/t Au and 2.65% Cu.

High grades emerged within the hole as two distinct upper and lower zones.

The Upper Zone interval of 36.18 metres is from 75.07 metres to 111.25 metres of depth. A specific high-grade interval within the Upper Zone includes 5.48 metres of 445.79 g/t silver, 1.41 g/t gold and 1.5% copper, including 2.13 metres of 917.36 g/t silver, 2 g/t gold and 3.06% copper.

The Lower Zone interval of 53.49 metres is from 198.12 metres to 251.61 metres, encountered in the sediment-hosted unit, a newly recognized mineral style at Hog Heaven. In total, the 53.49-metre interval in the Lower Zone returned 165.90 g/t silver, 1.28 g/t gold and 0.55% copper. Several high-grade intervals within the zone returned 9.45 metres assaying 221.90 g/t silver, 1.05 g/t gold and 0.94% copper; 0.32 metres of 1,010 g/t silver, 7.47 g/t gold and 0.64% copper; and 13.56 metres of 185.8 g/t silver, 2.24 g/t gold and 0.76% copper.

Exploration has begun at the 100%-owned Thorn Project in the Golden Triangle of northwestern British Columbia.

Streaming & Royalty companies: mutually beneficial arrangements for everyone, including investors

By Ellsworth Dickson

Mining stock investors are familiar with companies that specialize in exploring for minerals but have no interest in building or operating a mine. When the explorer has developed tonnage, the plan is to sell the project or company to a mine builder or would-be producer.

However, there are two other types of mining companies that investor may want on their radar screen – streaming and royalty companies. Some of these types of companies don’t own mineral properties, explore for minerals, build mines or operate them. Instead, they fill a need for mine builders and producers to access funds to build and operate a mine. However, there are some streaming and royalty companies that do have interests in mineral properties as well.

A streaming company provides funding to a mining company in exchange for a partial ownership of its mine (and its metal production) or has an agreement to buy a certain percentage of its metal production at a significant discount to the spot price of the metal. This usually involves gold or silver but can also involve industrial metals such as cobalt.

So, if the streamlining company can buy part of the mining company’s gold production at, say, 50% of the spot price, there is a robust profit margin to be gained when the streaming company sells its metal.

Streaming arrangement terms are all negotiated by the two parties. There are significant benefits to both the miner and the streaming company – and investors as well. Since building a mine is very capital intensive, if a mining company were to finance mine construction by issuing shares, the company’s shares would suffer substantial dilution. Even if a mining company could raise mine building funds via debt, of course the debt would have to be repaid.

A streaming arrangement eliminates share dilution as well as paying back millions of borrowed dollars which could be difficult if the mine for any reason is not profitable.

For a straightforward streaming company, it doesn’t have the risk of building and operating a mine. Usually the purchase price of the miner’s metal is sufficiently low that any decline in the price of metal would still enable the streamer to see a profit. However, if a mine is delayed in going into production, there won’t be any metal for the streaming company to buy. This is why many streaming and royalty companies have numerous agreements that lessen the risk.

For the investor, there are benefits too. Many streaming companies have a number of streaming arrangements which means that investor risk is spread out and thus lessened – unlike a junior explorer that often faces a difficult challenge to obtain exploration funds to outline an economic deposit – if there proves to be one to outline. Many fail with five years.

Some well-known streaming companies include Wheaton Precious Metals Corp. [WPM-TSX, NYSE] and Franco-Nevada Corp. [FNV-TSX, NYSE]. Franco-Nevada has both streaming and royalty agreements with producing miners.

Like streaming companies, royalty companies provide substantial amounts of cash up front to the mine builder in exchange for the miner’s net smelter return royalty on a property that could be anywhere from 0.5% to 5%.

Benefits for royalty companies are similar to streaming companies, miners and investors.

Royalty companies include Sandstorm Gold Ltd. [SSL-TSX; SDDXF-OTC; SAND-NYSE American], Ely Gold Royalties Inc. [ELY-TSXV; ELYGF-OTC], Osisko Gold Royalties Ltd. [OR-TSX; OSSPF-OTCQB], Sailfish Royalty Corp. [FISH-TSXV] and Altius Minerals Corp. [ALS-TSX; ATUSF-OTCQX].

Some streaming and royalty companies also want to be involved in mineral property ownership, exploration and sale. Ely Gold Royalties and EMX Royalty Corp. [EMX-TSX, NYSE American; 6E9-FSE] are examples of such companies.

Streaming and royalty companies fulfill a real need in the mining sector in addition to traditional means of raising funds.

Silver Exits Bear Market Once It Goes Above $21

July 06, 2020
Chris Vermeulen

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Fortuna suspends Caylloma operations for two weeks

NYSE- and TSX-listed Fortuna Silver Mines has voluntarily suspended operations for two weeks at its Caylloma mine, in Peru, following the sudden death of a 34-year old contractor employee on July 5. The cause of death has not yet been determined, but the individual had completed a health check, including a Covid-19 rapid diagnostic test, in accordance with the company’s health protocols. The employee tested negative for Covid-19.

David Erfle – Gold Market Commentary – Tue 30 Jun, 2020

Gold breaking out and stocks continuing to get a bid higher

Dave Erfle joins me today for a focus on the precious metals sector. with gold closing at it’s highest quarterly close ever this is drawing more investors into the sector.

We discuss Dave’s trading strategy for the stocks and the environment where even small metals stocks with no news are getting a strong buy.

Click here to visit Dave’s site.

Chris Temple from The National Investor – Tue 30 Jun, 2020

Gold, silver, and copper all moving higher – Here’s what matters in the markets right now

Chris Temple joins me to summarize the moves in gold, silver, copper, and the US markets which are all appreciating today. It’s the end of the quarter so there is a lot of “window dressing” but gold especially is reaching some key technical levels.

We also focus on what will be the major drivers for the rest of this year. It’s going to be a volatile market for the whole year!

Click here to visit Chris’s site and read his free content.

Craig Hemke from TF Metals Report – Thu 25 Jun, 2020

Options expiration for gold and silver – How price is impacted in the short term

Craig Hemke joins me to discuss the nuances in the moves in gold and silver this week. Today is options expiration and on Monday on silver front month contract comes off the board. These typically cause some short term volatility and also tend to trade around certain price levels.

Click here to visit Craig’s site and keep up to date with his metals outlooks.

Chris Temple from The National Investor – Thu 25 Jun, 2020

US Markets and Gold – A big picture outlook and key factors to watch for next week

Chris Temple joins me today to answer the question – What will it take to drive markets down for more than just one or two days?

Investors still have a buy the dip mentality and the Fed put that enable markets to continue to ignore weak economic data and virus spikes. With some key economic data next week and a monthly and quarterly close we should see some volatility creep back into the markets.

When it comes to gold the yellow metal is trading hand in had with broad markets which Chris thinks is not good for PM investors.

Click here to visit Chris’s site and learn more about his newsletter.