Exploration and Drilling Take SpotlightBy Paloma Duran | Thu, 06/03/2021 - 17:58
This week, major mining companies shared progress in regards to their exploration and drilling programs, as well as their plans to continue developing their assets. Additionally, mining exploration is expected to improve in 2021 due to commodity prices and a better market environment. However, Mexico's investment has not improved due to political uncertainty, legal frameworks, and security concerns. So, what does Mexico need to increase its exploration appeal?
This and more in your weekly roundup!
Chesapeake Gold announced the completion of its diamond drilling program at its Metates project in Durango and provided an update of its 2021 work program. The company drilled 2,500m of large diameter core, providing 10 tons of ore that will be used for metallurgical test work. The material is being sent to the ALS Laboratories in Zacatecas to prepare it with pulps that will later be analyzed in Vancouver, Canada.
The metallurgical program will be used as a guide on final design parameters for ore oxidation levels, reagent consumption, gold and silver recoveries and oxidation cycles. The company expects positive test results as it will significantly reduce risk and improve the economic viability of the project.
Discovery Silver Corp announced its 1Q21 financial results and provided a status on its Cordero project. Discovery completed the Phase 1 drilling program at Cordero, which included 75,000m and 178 holes. The company said the results have exceeded its expectations and have shown greater potential at Cordero. The data collected will be used to update resources in 3Q21 and for its PEA that is expected for the second half of the year.
The company also announced that Phase 2 of the drilling program will be focused on three key areas: “1) upgrading inferred resources to indicated for inclusion in a prefeasibility study; 2) resource expansion of bulk-tonnage mineralization; and 3) testing of the width, grade and continuity of extensive high-grade vein systems that transect the deposit.”
Riverside Resources Inc. and BHP have agreed to continue financing exploration in Sonora for a third consecutive year. BHP Exploration Financing Agreement (EFA) will provide a budget of US$1.3 million for additional exploration activities and targets.
Riverside’s priorities for 2021 include extending its strategic agreement with BHP for at least one more year until 2022; acquire properties and drill select areas of its projects; as well as complete an initial drilling program on the Cecilia Gold Project; complete additional interpretation work to refine the regional targets in the Cuarentas Gold Project; and acquire new projects in Canada and Mexico.
Telson Mining Corp. released its financial and operating results for 1Q21, reporting that this quarter the company had a better operating performance than in 4Q20. Telson explained that with its new financing and restructuring of its debt and board, the company expects to deliver strong results throughout the year.
“Campo Morado operating figures have improved significantly over the last year, this along with cost reduction initiatives and increased metal prices have resulted in strong results reported for 1Q21,” said Omar Garcia Abrego, Telson Mining’s CFO.
Vizsla Silver Corp. announced that it has reached an agreement with Canaccord Genuity Corp. that will provide CAD$60 million (US$49.66 million), allocated to continue exploring and developing its Panuco silver-gold project in Sinaloa. The net proceeds from the deal will also be used to make option payments, identify more opportunities, and for working capital and corporate purposes. The company said that for the first half of 2021, it plans to drill more than 40,000 m to better understand what is underneath the property.
Sonoro Gold Corp announced it has completed Phase 3 of its drilling program at its Cerro Caliche project in Sonora. In addition, Sonoro released the assay results of the last nine RC drill holes of its Phase 3, which have shown a coalescence of the Japoneses and Buena Suerte zones and the potential to merge them into a single body of shallow, oxide gold mineralization. The possible merger of both zones would represent significant economic advantages for the company’s Heap Leach Mining Operation (HLMO).
Two NI 43-101 technical reports are expected to be presented in July, which will provide the information necessary to determine whether the identified mineralization is sufficient to have an initial operating capacity of up to 15,000 tpd from the HLMO.
Mining projects are expected to grow as the market environment and commodity prices increase investors’ confidence around the world. However, Mexico faces other challenges in addition to COVID-19 as political uncertainty has prevented the arrival of new investors and projects. What is the outlook for exploration projects in Mexico in 2021 and how can the country improve its situation?
GL DETECT is the first Mexican company that provides unique solutions and technologies to verify the tightness of the complete waterproofing system. This allows a better understanding of the state of the geomembrane in its installation and maintenance. It also prevents any type of leakage to protected areas.
GL DETECT has two systems that detect faults or leaks: ARC TEST and BIPOLAR TEST, which represent an important benefit since the economic, social and environmental costs that a leak or fault can cause are very high.