Full Scale Commercial Production Initiates at San Francisco Mine

Magna Gold declares commercial production at its San Francisco mine. Minera y Metalúrgica El Boleo announced that the extension of its environmental permit has been approved by SEMARNAT, nevertheless, due to unknown circumstances, operations continue to be suspended. Additionally, the lithium concentration found in Bacanora Lithium deposit exceeds common concentrations of other deposits in Mexico.

This and more in your weekly roundup!

Full Scale Commercial Production Starts at Magna Gold’s San Francisco Mine

Magna Gold has achieved full scale commercial production at its San Francisco Mine in Sonora, placing the company on track to achieve its 2021 guidance of 55,000-65,000oz of gold production. The company explained that it has reduced the mine strip from 8.1 to 3.1 and now expects to achieve a production run rate of 6,000Au oz per month in the 3Q2021.

Minera El Boleo Receives Green Light From SEMARNAT

Minera y Metalúrgica El Boleo announced it has received SEMARNAT’s approval for the expansion of its MIA, which was requested to cover an additional 446ha for the exploitation of copper, cobalt and zinc in Mulegé, Baja California Sur. Nevertheless, due to unknown circumstances, operations continue to be suspended. However, the company said that this approval is an important step to continue working and taking care of its workers and their families.

Kootenay Silver Will Rehabilitate Historic Underground Work

Kootenay Silver Inc. announced it has signed an agreement with TLASA OBRAS MINERAS to rehabilitate the historic underground works at its Columba Silver Project in Chihuahua, allowing the company to improve its drilling targets and program.

The company explained that the initial activities will evaluate access to the underground works as well as starting its dewatering. Currently, work is being done on the clearing and timbering of the entrance to the underground mine in order to access the main shaft and a secondary inclined shaft will allow the old mine to be drained and its rehabilitation evaluated.

Drilling Campaign to Be Accelerated at Reyna’s Guigui Project

Reyna Silver Corp. announced that it has commissioned a second drilling rig that seeks to expand its drilling program at its Guigui project in the Santa Eulalia district in Chihuahua, where the country's largest Carbon Replacement Deposit (CRD) is located. Reyna Silver has already drilled 8,000m out of the 12,000m planned for its first exploration stage. With the second rig, the company expects to accelerate and complete the Phase 1 drilling campaign by the end of July.

Bacanora Has A Highly Concentrated Lithium Deposit

Flor de María Harp, Director of the Mexican Geological Service, said that the average concentration of lithium found in the samples of Bacanora Lithium is of 3,415 parts per million (ppm), which exceeds the common concentrations found in other deposits in Mexico. However, Harp also said that with its extraction there are high geological risks since the mineral is found in clay sediments, which are difficult to extract and therefore have not been used on a commercial scale.

ESG Criteria at the Heart of Investment Decisions

Environmental, social and governance (ESG) criteria are now at the center of investors’ decisions on whether to invest in a mining project or not. ESG practices create long-term value, reduce risks and help to seize opportunities related to environmental, social and economic issues. While raising ESG standards to reduce carbon emissions, to enhance diversity and to help communities develop is a challenge for the industry, it also represents an opportunity.

Mining will play a key role in the transition to a low-carbon economy and, according to experts, the demand for responsible practices will only grow. Therefore, mining companies that do not embrace ESG practices will not easily access capital.