Sector News
Snapshot; #Mining in Mexico; (TSX: $EDR), (TSXV: $GNC), (TSX: $PAA), (TSXV:
$SIL.V)
Point Roberts, WA, Delta BC – September 23, 2016 –
Investorideas.com, a global news source and investor resource issues a sector
news snapshot for the mining sector. Recent news in September from companies
currently mining in Mexico include Endeavour Silver Corp. (NYSE: EXK) (TSX: EDR), Gainey Capital Corp. (TSXV: GNC; OTCQX: GNYPF), Pan American Silver Corp. (NASDAQ: PAAS) (TSX: PAA) and SilverCrest Metals Inc. (TSXV:
SIL.V).
Endeavour Silver Corp. (NYSE: EXK) (TSX: EDR)
announced it entered into a definitive agreement dated September 13, 2016 (the
"Agreement") with Silver Standard Resources Inc. to acquire a 100%
interest in Silver Standard's Parral properties, located in the historic silver
mining district of Hidalgo de Parral in southern Chihuahua state, Mexico.
Pursuant to the Agreement, Endeavour will pay US$6
million in Endeavour common shares, being 1,198,083 common shares at US$5.008
per share, representing the 10-day average closing price of Endeavour's shares
on the New York Stock Exchange ("NYSE") prior to the date of the
Agreement.
In addition, Endeavour has committed to spend US$2
million on exploration on two of the properties (the San Patricio and La
Palmilla properties) over the two-year period following the closing of the
transaction. Upon completing this exploration expenditure, Endeavour will have
one year to deliver a National Instrument 43-101 ("NI 43-101")
technical report, including a resource estimate, and issue an additional
US$200,000 in common shares to Silver Standard for each one million ounces of
silver delineated in measured and indicated resources on the San Patricio and
La Palmilla properties, based on the 10-day average closing price of
Endeavour's common shares on the NYSE prior to the earlier of delivery of the
NI 43-101 report and the third anniversary of the initial closing date under
the Agreement. Silver Standard will also retain a 1% net smelter returns
royalty on production from the San Patricio and La Palmilla properties.
Gainey Capital Corp. (TSXV: GNC; OTCQX: GNYPF) recently
reported that the Phase 1 Drilling campaign has completed the first three
Diamond Drill holes at the El Colomo Gold-Silver Project in Mexico. The first
of the three holes targeting the La Nueva Victoria Mineralized Zone has been
sampled and shipped to ALS Labs Vancouver, BC for analysis and the other two
holes are currently being processed at the Company’s core logging facility to
be submitted shortly. Preliminary results from these drill holes are
anticipated within the next few weeks.
Furthermore, the Company is pleased to announce
that the program continues to advance with the commencement of drilling on the
first of four targets at the La Higuerita/El Arrayan Mineralized Zones.
Gainey’s exploration team, led by Rafael Gallardo
of Minera Cascabel S.A. de C.V., notes that though they have encountered two
serious weather systems in the region, the program has not met any serious
delays, and drilling progress has continued on the target zones. David Coburn,
CEO of Gainey, commented, "we are looking forward to the first set of
drilling results over the next 2-3 weeks. The Exploration Team has done an
excellent job meeting their objectives given they have encountered challenging
weather conditions."
The Company recently upgraded its exploration team with
the addition of David Hladky, P.Geo. to the Technical Advisory Board, who is
also the Company’s acting Qualified Person as defined by NI 43-101, please see
the Company’s news release on July 26, 2016 for full details. Mr. Hladky’s
previous position was with Cayden Resources Inc. as the Qualified Person and
one of the leaders in the exploration of the Morelos Sur and El Barqueno
projects in Mexico, that were successfully sold to Agnico Eagle Mines for $205
Million in 2014.
Pan American Silver Corp. (NASDAQ: PAAS) (TSX: PAA)
announced that it achieved important milestones at its two mine expansion
projects currently underway in Mexico. At the Company's La Colorada mine, the
new 618-metre deep shaft was commissioned in fully automatic mode in early September,
ahead of schedule. The shaft was constructed with a world-class safety
performance of zero lost-time accidents incurred and using industry-leading
raise boring and shaft automation technologies. The work remaining to complete
the La Colorada expansion project includes a new filter plant, power line and
underground development. The project is now expected to be completed
approximately 5 to 10 percent under budget.
At the Company's Dolores mine, the new 98
kilometre, 115 kV power line that connects the mine to the national power grid
was energized in early September. The new power line was completed on budget
and is expected to result in annual savings of about $9 million.
"We successfully achieved these milestones on
or under budget and funded them entirely from internal resources," said
Michael Steinmann, President and CEO. "These expansion projects will
contribute to higher production rates and lower costs at both operations, and
as silver prices rise, our shareholders are positioned to benefit from widening
profit margins."
The La Colorada expansion project commenced in 2014
with an original capital investment estimate of about $163.8 million, including
sustaining capital. By the end of 2017 when the project is expected to be
completed, processing rates are expected to increase to 1,800 tonnes per day,
resulting in a 69 percent increase in annual silver production to approximately
7.7 million ounces.
The Dolores expansion project has an estimated
capital investment of approximately $112.4 million. By the end of 2017, this
project is expected to increase annual silver production by about 40 percent to
6.3 million ounces and gold production by about 52 percent to over 205,000
ounces.
SilverCrest Metals Inc. (TSXV: SIL.V) announced the
results of the remaining drill holes from Phase I drilling for the Las Chispas
Project. The Las Chispas Project ("Las Chispas") is located in Sonora
State, Mexico and is in a historic silver-gold mining district which presently
hosts two nearby precious metal producers. Historic information indicates that
of the fourteen historically reported veins at Las Chispas, only three veins,
the Las Chispas, William Tell and Babicanora, had documented production, which
occurred between 1880 and 1930. SilverCrest’s initial focus is on these three
veins. To the Company’s knowledge, none of the known veins have been drilled
prior to the Company’s Phase I drill campaign. For more information, please
refer to our website at http://www.silvercrestmetals.com.
Dunham Craig, P.Geo., Interim CEO remarked,
"The remaining drill hole results from the Phase I drill program
intercepted the Las Chispas vein which has further demonstrated continuity of
high grades and potential mineable thicknesses. Phase II exploration work will
continue to define the Las Chispas vein for resource estimation expected in H1
2017. As we continue to systematically explore this district-wide discovery
with multiple undrilled epithermal veins, we could potentially have several
more discoveries. The Babicanora area (no previous drilling), immediately
adjacent to Las Chispas and William Tell veins, is considered the largest
target in the district and will be tested in Phase II exploration."
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