NEW YORK, Sept. 30, 2020 /PRNewswire/ -- Mexico has a mining history that goes back over 500 years and continues to be a hotbed for high-grade silver discoveries. In 2019, the Latin American country was responsible for close to 200 million ounces of silver. Junior miners who were lucky enough to gain a stake in the prolific region have continued to see promising results. Mexico is the world's top silver-producing country and offers exciting opportunities to companies like Minaurum Gold Inc. (TSXV:MGG) (OTCQX: MMRGF), Endeavour Silver (TSX: EDR) (NYSE: EXK), SilverCrest Metals (TSX: SIL) (NYSE: SILV), MAG Silver Corp. (TSX: MAG) (NYSE: MAG), and Great Panther Mining Limited (TSX: GPR) (NYSE: GPL).
Hitting Bonanza-Grade Silver in Mexico
Mexico-based gold exploration company Minaurum (MGG.V) (MMRGF.QX) began drilling on its flagship Alamos silver project in Sonora, Mexico, in August 2017 and has continued to uncover exceptionally high silver grades ever since.
In February 2020, Minaurum acquired historical data on the project, including mine maps, sections, and results of 40 holes (6,099 meters) drilled in multiple surface and underground exploration campaigns that occurred from the 1960s through the early 1980s. The majority of these historic drill holes cut wide widths of high-grade silver, including 4.6 meters (m) grading 2,838 grams per tonne (g/t) (82.8 oz/t) silver, 11.3m of 785 g/t (22.9 oz/t) silver, and 1.2m of 5,588 g/t (163 oz/t) silver. At the Promontorio mine, drill holes intersected mineralization over 50m below the historic mining level and indicate an aggregate 735m strike length of mineralization. The historical data indicates mining ended in mineralization, offering the potential for more silver to be discovered.
On July 15, Minaurum commenced its Phase II drilling program at the Alamos project, which includes a minimum of 20,000 meters. One drill will offset the Europa-Guadalupe discovery hole, which returned 8.25m grading 1,760 g/t (57 oz/t) silver, including 2.2m grading 5,098 g/t (164 oz/t) silver, while the other drill will test targets at Promontorio, both along the vein trend and beneath the Promontorio Mine. With multiple rigs drilling 75 to 150 meter step-outs, the company anticipates to release ongoing results from the Phase II drilling program over the next 12 to 18 months.
On September 24, Minaurum's first drill results came in from its Phase II program, discovering more high-grade silver with intercepts such as 3.50m of 404 g/t (13 oz/t) silver, including 1.15m of 999 g/t (32 oz/t) silver, and 6.35m of 356 g/t silver (11 oz/t), including 0.70m of 2090 g/t (67 oz/t) silver. President & CEO Darrell Rader commented, "We are encouraged by how these results from the first Phase II holes into the Europa-Guadalupe vein show a downwards increase in grade and thickness from AL20-041 and -042 to AL17-007. This trend suggests that we are in the uppermost portion of a silver shoot...Europa-Guadalupe is just one of many newly identified mineralized veins discovered through our Phase I drilling and we are simultaneously drilling the Promontorio vein. Initial Promontorio results will be released shortly."
SilverCrest Metals (TSX:SIL) (NYSEAMERICAN:SILV) is another Mexico-focused miner that has continued to experience drill success at its properties. In August, the company announced additional drill results for the Babi Vista Vein at its Las Chispas Property, which is also located in Sonora, Mexico. The current drill program on the Babi Vista Vein is designed to expand and in-fill high-grade precious metal mineralization, which will be included in the updated resource for the ongoing feasibility study. The most significant result was Hole BV20-60, which intersected 1.3 meters (estimated true width) grading 634.56 g/t gold and 26,003.6 g/t silver, or 73,595 g/t silver equivalent (AgEq).
Mexico Silver Miners Report Encouraging Second Quarter Financial Results
During the second quarter, mining companies in Mexico were forced to temporarily shut down their mines due to the health crisis. Luckily, operations began to resume in May after the Mexican government declared mining as an essential service and most companies weren't impacted too greatly.
Endeavour Silver (TSX:EDR) (NYSE:EXK) reported its Q2 2020 results on August 4, noting that despite the suspension of mining operations, the company was able to reduce its quarter-over-quarter loss thanks to improved operating performance and higher precious metals prices. In the second quarter, Endeavour reported a net loss of $3.3 million ($0.02 per share), including $2.2 million in care and maintenance costs during the mine suspension period and $1.1 million in general and administrative expenses related to the mark to market of deferred share units due to the higher share price.
For MAG Silver Corp. (TSX:MAG) (NYSEAMERICAN:MAG), the temporary suspensions during COVID-19 hindered surface construction at its Juanicipio Project, a joint venture with Fresnillo. The Juanicipio Joint Venture is currently constructing and developing the surface and underground infrastructure on the project to support a 4,000 tonnes per day mining operation. Luckily, the anticipated development timetable remains unchanged, with the Juanicipio processing plant expected to be commissioned in mid-2021.
Meanwhile, silver and gold producer Great Panther Mining Limited (TSX:GPR) (NYSEAMERICAN:GPL) reported record net income of $8.6 million and operating cash flow of $19.5 million for Q2 2020 despite temporary shutdowns at two of its three mines. The company also finished off the quarter with cash and cash equivalents of $60.2 million, an increase from $37 million at December 31, 2019.
With silver prices expected to remain elevated for the foreseeable future, it's encouraging to see silver mining companies move forward with projects and add value for shareholders. Silver market enthusiasts will likely keep their eyes on Minaurum and upcoming results from its Phase II drill program at Alamos.
Disclaimer: Microsmallcap.com (MSC) is the source of the Article and content set forth above. MSC owns and operates Miningnewsdaily.com. References to any issuer other than the profiled issuer are intended solely to identify industry participants and do not constitute an endorsement of any issuer and do not constitute a comparison to the profiled issuer. FN Media Group (FNM) is a third-party publisher and news dissemination service provider, which disseminates electronic information through multiple online media channels. FNM is NOT affiliated with MSC or any company mentioned herein. The commentary, views and opinions expressed in this release by MSC are solely those of MSC and are not shared by and do not reflect in any manner the views or opinions of FNM. Readers of this Article and content agree that they cannot and will not seek to hold liable MSC and FNM for any investment decisions by their readers or subscribers. MSC and FNM and their respective affiliated companies are a news dissemination and financial marketing solutions provider and are NOT registered broker-dealers/analysts/investment advisers, hold no investment licenses and may NOT sell, offer to sell or offer to buy any security.
The Article and content related to the profiled company represent the personal and subjective views of the Author (MSC), and are subject to change at any time without notice. The information provided in the Article and the content has been obtained from sources which the Author believes to be reliable. However, the Author (MSC) has not independently verified or otherwise investigated all such information. None of the Author, MSC, FNM, or any of their respective affiliates, guarantee the accuracy or completeness of any such information. This Article and content are not, and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action; readers are strongly urged to speak with their own investment advisor and review all of the profiled issuer's filings made with the Securities and Exchange Commission before making any investment decisions and should understand the risks associated with an investment in the profiled issuer's securities, including, but not limited to, the complete loss of your investment. FNM was not compensated by any public company mentioned herein to disseminate this press release but was compensated twenty five hundred dollars by MSC, a non-affiliated third party to distribute this release on behalf of Minaurum Gold Inc.
FNM HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.
This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may", "future", "plan" or "planned", "will" or "should", "expected," "anticipates", "draft", "eventually" or "projected". You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company's annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and MSC and FNM undertake no obligation to update such statements.
FN Media Group, LLC