Showing posts with label Mexico. Show all posts
Showing posts with label Mexico. Show all posts

Wednesday, October 24, 2012

What's next for 3 big silver deposits in northern Mexico?

There are some interesting possibilities for three of the more prominent silver projects in northern Mexico.

Author: Kip Keen

I'll get right to it. Here's the latest on three of the larger silver projects in northern Mexico that aren't in the hands of a producer:

Orko Silver
Durango state

Word is that the team of at least one major silver producer was recently on site at Orko's La Preciosa silver project. Perhaps this is not a surprise given Orko has signed numerous confidentiality agreements since Pan American Silver
opted out of La Preciosa earlier this year. According to Gary Cope, Orko's president and CEO, in an October conference call, three or four parties are in talks with the junior (transcript).

Potential takeover-talk aside, to watch for at La Preciosa is a redesigned mining project. Whereas Pan American saw the project as combined open pit/underground scenario, Orko now says a superpit may be possible at the project encompassing far more ounces than before. The old scoping study was for underground and open pit operations with annual production averaging 6.8 million ounces silver and 11,800 ounces gold.

The new superpit could allow Orko to significantly increase production numbers, as within it, according to a recently update resource, are 110 million ounces silver equivalent @ 110 g/t and 127 million ounces silver equivalent @ 98 g/t in indicated and inferred resources respectively. Size wise it's not clear how big Orko might go at La Preciosa in a forthcoming scoping study. Indeed that's the question Orko now faces, how best to optimize mining, get the biggest bang for its buck and at the same time not make something so elephantine it scares away investors in terms of capital costs.

The scoping study is said to be coming out in March 2013.

Silver Bull Resources
Chihuahua State

Silver Bull took the Sierra Mojada silver-zinc project back to the drawing board after a 2009-2010 merger between Metalline and Dome Ventures (since renamed Silver Bull). Under different management it had outlined 136 million ounces silver @ 149 g/t silver, inferred, in a 2010 resource estimate. But since then management has changed and it appears to be taking a more conservative approach in modelling open-pit resources. Now, after successive resources over the past couple years, Silver Bull is nearing the 100 million ounce silver mark again in an open-pit model that may get fairly strong recoveries from a cyanide leaching scenario.

In fact this is the first thing to watch for. This year Silver Bull hired its own metallurgist, which is not that common for a junior at this stage of development (without even an official scoping study out yet, for example) and under his direction Silver Bull is getting set to release more metallurgical results in the next month or so. A key development for Silver Bull would be to increase potential recoveries to the 70 to 80 percent range (or better of course) without having to resort to fine grinding. Brian Post, a Roth Capital Partner analyst, who has a C$0.90 target on Silver Bull, is looking for north of 70 percent as silver recovery. A recovery up there, would bode well for a planned economic study.

The second thing to watch for in early 2013 is an updated - and strenghtening - resource. The count now in the Shallow Silver zone is 6.7 million ounces silver @ 57 g/t; 65 million ounces silver @ 45 g/t; and 10.4 million ounces silver @ 40 g/t in measured, indicated and inferred resources respectively. Silver Bull had hoped for better grades in the last resource round, but in part didn't get them because its consultant working on the latest resource didn't accept as much of its historic data from a high grade silver zone as expected. That has spurred a more extensive twinning program of a portion of historic drilling to satisfy the consultant's appetite for quality control in the higher grade zone. With these pulled into the broader resources, among other that I spoke to, Roth Capital's Post bets that the next resource will push 100 million ounces and come in with a better grade.

Two final notes: there is a zinc component to Sierra Mojada that has yet to be pulled back into resources that are below the near surface silver resources. As Silver Bull would have it, the Silver Zone open pit could transition into those potential zinc resources down the road were Sierra Mojada ever to turn into a mine. Which makes a good segue for the second point, that Coeur d'Alenes Mines is Silver Bull's largest single shareholder having invested $10 million through two financings in 2011. So at least one silver producer is watching closely how Sierra Mojada shapes up as a silver deposit.

MAG Silver
Chihuahua State

It's fair to say MAG Silver's Cinco de Mayo project flies under the radar as so much of MAG's story has been about Juanicipio, its uber high-grade silver deposit and joint venture project with Fresnillo (44-percent owned by MAG). Here's a reminder. MAG put out a nice looking first resource estimate for its Cinco de Mayo project, in Chihuahua State, this past October that is primarily about silver but that also has a strong base metal component. Further, it has the look of something set to grow.

The maiden inferred resource was 12 million tonnes @ 132 g/t Ag, 0.24 g/t Au, 2.86 percent lead, 6.47 percent zinc for 53 million ounces silver, 785 million pounds lead, and 1.8 billion pounds zinc in contained metal. This resource encompassed two zones, the Jose Manto and the Bridge zone. But a third zone, the Pegaso zone lies between and at depth and holds much potential for added resources.

This is not my interpretation. MAG's president and CEO, Dan MacInnis is on record saying as much. "We expect to follow our exploration model and link the Bridge Zone/Jose Manto to the new Pegaso Zone discovery at depth." MacInnis pointed to a pretty looking intercept in Pegaso to illustrate his point. One intercept from this year returned 62 metres @ 89 g/t Ag, 0.78 g/t Au, 0.13 percent Cu, 2.1 percent Pb and 7.32 percent Zn.

MAG has said drilling at Cinco de Mayo is set to start again once it gets drilling permits from the Mexican government. It won't lack cash for the program as it recently closed a C$33.1 private placement back on strong terms.

Wednesday, October 10, 2012

World's richest man Carlos Slim bets on Mexican gold mining

Author: Dorothy Kosich

Billionaire Carlos Slim's Minera Frisco is acquiring Mexican assets belonging to AuRico Gold for $750 million

Little more than a month after AuRico Gold announced the Ocampo mine would lose at least 40,000 to 45,000 ounces of gold equivalent production this year and as much as 50,000 GEO in 2013; AuRico announced it would sell Ocampo and adjacent exploration properties to Carlos Slim's Minera Frisco SAB

Billionaire Slim's third-largest holding, Frisco--spun off last year from his holding company Grupo Carso SAB--will acquire Ocampo, the exploration projects Venus and Los Jarros, all located in the Chihuahua State and a 50% interested in AuRico's Orion advanced development project in Nayarit State, Mexico, for a total cash consideration of $750 million.

"Upon closing of the transaction, the company expects to use the net proceeds from the transaction to eliminate certain debt obligations, invest in internal growth opportunities, provide sufficient working capital and liquidity for the company going forward and to undertake a significant return of capital to shareholders," said AuRico in a press release. The transaction is expected to close in December.

Ocampo's problems stemmed from what AuRico said is an "unusually high turnover of skilled labor," as well as "significantly reduced underground ore development in the Northeast underground mine."

The company hired two underground mining contractors to support an accelerated underground development program, which increased estimated capital expenditures for this year and next. Scotia Capital analyst Trevor Turnbull wrote in early September that the mine's cash costs were forecast to double this year and jump 30% in 2013.

AuRico CEO Scott Perry said, "Minera Frisco presented a compelling, all-cash offer that will strengthen the company's balance sheet and repositions AuRico to execute on its strategy of delivering consistent, reliable and sustainable production from our two core assets in Canada and Mexico."

"Following the transaction, the company will be well positioned to meet its key objectives of growing its profitability and cash flow through the long life, strong organic growth profile primarily driven by increasing production at Young-Davidson," Perry observed. "In addition, we have gained a solid partner to further evaluate and potentially advance the Orion project in the coming years through the joint venture with Minera Frisco."

Source: Mineweb

Friday, September 28, 2012

Looking for a big silver score on the Veta Grande in Mexico

Defiance Silver raises some cash as it moves to spruce up a 250 tpd mill in the Zacatecas silver district and explore the storied Veta Grande vein.

The lack of lift in the junior financing market is evident in Defiance Silver's latest financing, which just closed and raised about C$900,000 in two tranches. The junior had hoped for as much as $10 million back in mid-2012, an amount that would enable it to earmark about $4 million to get its 250-tonne-per-day silver mill, under option from Impact Silver, online and "up to first world standards," as Darrell Rader, Defiance Silver's chairman put it to me a few months ago. The mill is next to the storied Veta Grande silver vein in Mexico in the Zacatecas silver district, a vein along which Defiance controls about two thirds its nine-kilometre-long strike length on grounds also under option.

While Defiance didn't hit the $10 million mark, the initial financing still marks a solid start. It's safe to say the market isn't in the habit of feeding turkeys these days. Rather, while juniors like Defiance find supporters in a financing world marked by scarcity, those unable to raise funds may find themselves as Thanksgiving menu items. Headless and roasted.

For Defiance, the funds give it cash to continue with refurbishments at its mill and, perhaps more importantly, secure it funds to make good on option payments on its main properties. The crux to Defiance is a combo of assets: a concession over much of the storied Veta Grande mine, including some historically mined portions that hold 15 million ounces silver @ 182 g/t silver in historic resources (by Silver Standard back in 1995) and then the small Santa Gabriela mill next door.

The two assets haven't been under the same junior roof before. Indeed, Impact Silver, a major Defiance shareholder, had the Santa Gabriela mill in the past, but not the almost adjacent San Acacio property, which has been in the hands of a single family for a couple decades short of a century.

The head of the Mexican family, 80 years old, has not wanted to part with the property in the past, at least at prices that may have been on offer. But Bruce Winfield, Defiance president and CEO, worked on getting a deal done with the Mexican patriarch for the better part of a year and said the octogenarian had his five children in mind in deciding to work with Defiance.
"This is in effect estate planning for him," Winfield said.

The combination is pretty logical, making for a nice package with possible near term production from dumps at the mill, and then possibly with mine backfill and other feed from the Veta Grande mine, and then the obvious exploration potential beyond. The San Acacio concessions cover about four kilometres of the Veta Grande vein to the east of mine workings, an area that is little explored, in part because of sparse outcropping.

Of course there's no guarantee Defiance will find anything along strike to the southeast, but it has good reason to hope it might. As Winfield pointed out, a few years back MAG Silver announced it had drilled the Veta Grande vein to the southeast of the concessions Defiance now has under option. The MAG Silver hits were blind targets in the sense they were under 150 metres of cover, in an area without outcrop. The drillholes, if not showing widths as broad as in parts of the old Veta Grande mines to the north, still had strong intercepts with as much as 850 g/t silver over a metre.

Given the hits to the south, the question of what lies on Defiance-controlled land is very much an open one. As Defiance spruces up its Santa Gabriela mill, maybe starting off with silver production in the 100,000-ounce range a year, it aims to find an answer.

Lundin Mining in search of new acquisitions

Lundin Mining is seeking mine acquisitions in Europe, Canada, Mexico and South America, but not Russia.

The company wants to invest up about US $600 mln in zinc and copper mine acquisitions.

The company wants to boost its production after the company experienced various failed deals and mergers last year.

The company owns the Tenke-Fungurume copper-cobolt mine in the Democratic Republic of Congo.

Chief Executive Paul Conibear said "We are looking at copper and zinc mines that produce 30,000 to 70,000 tonnes of metal per year."

"We are going to be very disciplined, but when we find something for the right price, we will act quickly and aggressively."

Lundin Mining, listed in both Toronto and Stockholm, has up to 4 billion crowns ($604.05 million) to spend on acquisition, the paper said.

Early in 2011, Lundin agreed a $9 billion tie up with rival miner Inmet Mining.

But this fell apart after Equinox Minerals launched a hostile bid for Lundin. Equinox itself was taken over by Barrick Gold and Lundin failed to attract any new suitors and has since then been focusing on expanding its existing mines.

The Tenke project, which is operated by Freeport McMoRan, is on its way to total annual output of 195,000 tonnes of copper cathode. The expansion is expected to be completed in 2013.

Conibear said further investment could take production to close to 300,000 tonnes by 2015.

Lundin is also looking at expanding ore production at its Zinkgruvan mine in Sweden by up to 40 percent to 1.4-1.5 million tonnes a year from the current 1.1 million tonnes.

"We have had a very strong development at Zinkgruvan this year and production is at a record level," he said. "We hope to be able to make a decision on expansion at the end of the year."

At the Neves-Corvo mine in Portugal, Lundin is looking at spending $500 million over the next 5-6 years to boost production.

"Another alternative is for a smaller production increase with less risk," Conibear said, adding that decision would also be taken at the end of the year.

 

acquisitions, democratic republic of the congo, global, mining, canada, mexico, tenke project, mining, lundin mining

Sunday, September 23, 2012

Goldcorp eyes Mexico joint venture with Fresnillo

The two companies are looking to jointly develop Fresnillo's Camino Rojo gold and silver deposits, adding that a feasibility study is expected to be completed by early next year.

Canadian miner Goldcorp, one of the world's largest gold producers, is considering teaming up with Mexico's Fresnillo to develop a new precious metals venture in the central Mexican state of Zacatecas.

Goldcorp Mexico's business development director, Federico Villasenor, told Reuters that Goldcorp and Fresnillo are looking to jointly develop the Canadian miner's Camino Rojo gold and silver deposits, adding that a feasibility study is expected to be completed by early next year.

Villasenor said both companies had already worked together on geological exploration of the property, but he declined to quantify reserves or expected production.

Camino Rojo is just 31 miles (50 km) southeast of Goldcorp's massive open pit mine at Penasquito.

"As neighbors, it's possible that we can create a synergy between the two companies," said Villasenor.

In addition to gold and silver deposits, Camino Rojo is believed to contain significant deposits of lead and zinc.

Fresnillo is the world's largest primary producer of silver, and is controlled by Mexican mining company Industrias Penoles . Fresnillo is also Mexico's second-largest gold producer.

Villasenor added that the Camino Rojo property is believed to feature a geological profile similar to that of Penasquito, expected to be Goldcorp's top gold-producing mine in Mexico this year.

GOLD PROSPECTING UP

Sustained high gold prices and relatively low Mexican labor costs have propelled increased production as well as added exploration investments over the past 10 years.

"Mexico's exploration expenditures have risen significantly over the last decade, reaching a record high of almost $1 billion in 2011," said analyst Ben Moore of Metals Economics Group.

He added that since 2003, exploration spending in Mexico has grown faster than the world average, boosting the country's global ranking to fourth from eighth.

Goldcorp expects to produce 380,000 ounces of gold from Penasquito this year, down 10.6 percent from the company's previous output forecast of 425,000 ounces.

The company says the downward revision is mainly due to a local water shortage caused by severe drought conditions that began last year.

Last year, Penasquito produced 254,100 ounces of gold.

Gold hit a 6-1/2 month high at $1,779.10 per ounce on Wednesday, before easing off.

"The rise (in prices) over the last few years has been so positive that there's still a fairly large margin" between extraction costs and attractive returns, said Villasenor.

The Penasquito property is currently the world's 35th-largest gold producing mine, and Mexico's second-largest gold mine after Fresnillo's Herradura property in the northwest state of Sonora, according to data compiled by Thomson Reuters GFMS.

Goldcorp also operates the El Sauzal mine, in the northern state of Chihuahua, as well as the Los Filos mine in southern Mexico's Guerrero state.

The company's three existing gold producing-properties contributed a quarter of Goldcorp's international gold production in 2011, or about 2.5 million ounces.

This year, Goldcorp expects to produce between 2.35 million and 2.45 million ounces of gold.

Source: Reuters

Thursday, September 6, 2012

Sierra Iron Ore intersects high iron grades exceeding 30% at El Creston Property

Sierra Iron Ore today reported on the first assay results from its core drill program at the Company's Veinte zone located within the El Creston Property Iron Ore Project north of the city of Choix, Mexico.

The Company is encouraged by the results of the initial eight drill holes, with six holes intersecting significant iron bands grading 30% iron ore or greater. The initial assay results of the six holes are highlighted by more than 66 meters of 30% iron or better including more than 33 meters of 45% iron or better.

"We are very encouraged by the results of the first series of holes to be drilled on the El Veinte zone of the El Creston property", stated Wally Boguski, President and CEO. "We look forward to continue reporting the next series of holes in our drill program and moving the company a step closer to a defined resource."

Sierra Iron Ore Sierra Iron Ore is a growth focused mineral exploration company creating value through the exploration and development of the El Creston property located in the Sinoala State of Mexico.

The company has a continual fieldwork program at the El Creston Property that is comprised of drilling, mapping, sampling and planning for further property development. Roads have been built and upgraded as well as equipment has been mobilized for further developing the known magnetite zones identified by recent exploration work.

Wednesday, May 16, 2012

California Gold Corp. to conduct more detailed geophysics program at AuroTellurio project before drilling

California Gold Corp. (OTC BB: CLGL) ("California Gold" or, the "Company") has elected to conduct a more detailed geophysics analytical program at its AuroTellurio project near Moctezuma in Sonora, Mexico, before commencing its previously announced drilling program at the project this month.


Of the three drilling targets that were defined on a geological basis, two of them, the southeasterly extension of the La Bambolla vein system and the deep-seated intrusive target area, respectively, will be further investigated using geophysical methods in order to better define the configuration of these targets at depth.

In both instances, a high resolution resistivity imaging technique, CSAMI (Controlled Source Audio-Frequency Magneto Telluric), will be used to model lithologic contacts and structures. This methodology will be supplemented with CSIP (a similar technique to gradient Induced Polarization) in order to detect sulfide mineralization associated with both, the intrusive contact and the structural features.

The results of the further geophysical surveys are intended to assist the Company to select drill targets and specific drill sites more effectively.

The Company has completed the survey lines for this program and they have been flagged in the field. The field work is expected to start shortly. The Company estimates that it can complete this program and evaluate the information by mid-July, and that a decision to launch the drilling program should follow.

Zonge International, Inc., of Tucson, Arizona, will be conducting the focused geophysics survey program. The Company's AuroTellurio project adjoins the La Bambolla Mine, which has recently been undergoing re-development for tellurium, and is believed to host a gold and tellurium resource. California Gold Corp. is targeting similar mineralization at its own project.

Silvermex's Q1 profit down on lower sales, higher costs

Silvermex Resources (TSX: SLX) saw its profit fall to Cdn$96,000 (US$95,031) in Q1 from Cdn$1.7mn in the prior year as sales dropped due to lower production, an increase in concentrate inventory, and higher unit processing costs, according to the company's quarterly results.

Silver and gold revenues also decreased from Cdn$3.9mn in 1Q11 to Cdn$2.9mn this year.

La Guitarra mine in Mexico produced a rate of 336t/d, totaling 26,869t of ore, representing a 64% increase year-on-year.

Total silver and gold output was 101,158oz and 1,136oz, respectively. Lower silver production for the quarter is attributed to a decrease in overall grade.

Average realized silver and gold prices was Cdn$32.89/oz and Cdn$1,690, respectively. The company sold 57,399oz of silver and 862oz of gold.

"Although overall production is down, we are able to operate the plant at more than our projected 320t/d," Silvermex CEO Michael Callahan said.

Vancouver-based First Majestic Silver announced in April it had entered a definitive agreement to acquire all of Silvermex's issued and outstanding common shares.

First Majectic's short-term focus will be to reduce production costs at La Guitarra.

Sunday, May 13, 2012

Capstone's Q1 earnings down to US$15.7mn on lower sales volumes, copper prices

Vancouver-based Capstone Mining (TSX: CS) posted Q1 net earnings down to US$15.7mn, from US$18.9mn year-on-year, due to a combination of lower copper sales volumes and realized prices, according to the firm's quarterly results.

Gross revenues and earnings from mining operations both dropped to US$75.1mn and US$29.6mn respectively, compared with the US$110mn and US$39.3mn reported in 1Q11.

Physical sales totaled 16.2Mlb copper, 3.9Mlb zinc, 0.9Mlb lead, 3,631oz gold and 387,050oz silver compared with 22.8Mlb copper, 3Mlb zinc, 1Mlb lead, 7,765oz gold and 348,401oz silver in the same period last year, the company said.

Adjusted net earnings increased to US$21.9mn from US$16.8mn after making adjustments for certain non-cash and non-recurring items, the company said.

Output at Capstone's two (Canada's Minto and Mexico's Cozamin) mines, increased to 17.9Mlb of payable copper at an estimated total cash cost of US$1.45/lb compared to 16.1Mlb at US$1.59/lb.

Production at Cozamin, located in Zacatecas state, increased to 12.9Mlb of copper in concentrates during Q1 from 8.61Mlb due to record copper production and continued improvements in underground operations.

The drop in net income was mainly atributted to lower sales volumes at the Minto Mine, which more than offset the higher sales volumes at the Cozamin Mine, resulting in a net decrease overall.

Capstone's 2012 guidance for Cozamin is 42Mlb (19,051t) of copper in concentrates.

In Latin America, Capstone also controls the Santo Domingo project in Chile's northern region II.

Friday, May 4, 2012

Torex gunning for 5Moz resource at Mexican gold project

Though Toronto-based Torex Gold on Friday said it missed its five-million ounce resource goal “by a whisker” at its Mexican Morelos project, the 4.8-million in measured and indicated ounces the company unveiled are nothing to be sneezed at.

CEO Fred Stanford said the information allowed the company to finalise plans for a 14 000 t/d mill at the mine, and wrap a feasibility study by the end of July.

“In addition, we can now concentrate the majority of our future drilling efforts on exploration targets south and north of the Balsas River in the search for additional gold deposits,” he added.

Stanford had in an April interview said early capital estimates for the Morales mine, located 180 km southwest of Mexico City, stood at “not more than $600-million”.

As with many other recent resources statements, Torex’s benefitted significantly from higher gold prices.

The company used a price of $1400/oz for the pit shell and a cut-off grade of 0.5 g/t.

By comparison, an $865/oz gold price went into the pit shell in the previous October 2009 resource estimate. At the time of that announcement, the yellow metal was trading at less than $1 100/oz, while an ounce was selling for $1 638 on Friday.

The 4.8-million ounce resource was at a grade of 2.79 g/t, Torex said.

Torex, which changed its name from Gleichen Resources and listed in February after buying Morelos from Tech Resources, aims to fund the project’s construction through a combination of debt and equity, and has already engaged banks in this regard.

The company aims to start construction early next year, with first output slated for 2015.

Torex’s stock closed nearly 10% lower on Thursday in Toronto, as investors sold off commodity stocks and riskier investments such as exploration firms. It ended the day at C$1.66.

Oremex Gold commences underground drill program at cerro del oro gold project

Oremex Gold Inc. ("Oremex Gold" or the "Company") (TSX Venture: OAU) (Frankfurt: OM8) is pleased to report the commencement of the initial underground drill program at its Cerro del Oro gold project. The planned program will comprise of approximately 500 meters in 8 to10 holes, drilled from two rehabilitated underground workings. Holes will target skarn and structurally-controlled mineralized zones. A Phase I surface diamond drilling program is planned to start during the summer of 2012.

"This underground drill program is intended to further delineate below surface the extent of the gold mineralization sampled on surface and in underground workings at Cerro del Oro. This program, combined with the upcoming surface diamond drill program, will provide a near term assessment of the resource potential of the 500 by 500 meter core area of the project" stated David Terry, President and CEO.

The Cerro del Oro property is 100% owned by the Company's wholly-owned Mexican subsidiary, Minera Tres Diamantes, S.A. de C.V. The project is located in the Melchor Ocampo mining district in northern Zacatecas State, Mexico, approximately 22km north of Goldcorp Inc.'s world-class, Peñasquito, gold-silver-lead-zinc mine (P&P Reserves greater than 18 million oz gold and 1 illion oz silver)1 at the northern end of the Zacatecas "Zona Dorada" (Golden one). The Cerro del Oro property hosts numerous historical pits, trenches, nderground workings and is underlain by a mixed intrusive/skarn domain ineralized with gold-silver, +/-base metals. Mineralization commonly displays tructural controls and occurs in both intrusive and skarn lithologies.

Samplingresults (reported in February 23 2012 and April 3 2012 news releases) indicated idespread gold-dominant mineralization over considerable widths. 460 samples veraged 0.47 g/t gold. Assay highlights include 3.2m at 8.3 g/t gold, 13.8m at .85 g/t gold, 25.2m at 0.53 g/t gold and 64.1m at 0.45 g/t gold from surface ship sampling.
The current underground program is being carried out using a pneumatic Wolverine drill capable of recovering up to 120 meters of core with a diameter of TT46 (35.3 mm core). The drilling program will be carried out under the supervision of Bill Feyerabend, CPG -11047, a Qualified Person as defined in National Instrument 43-101 - Standards of Disclosure for Mineral Projects.

SOURCE Oremex Gold Inc.

San Dimas gold-silver mine lifts Primero Mining adj profit nearly twelve-fold

Primero Mining says its first quarter adjusted profit jumped to $18.8 million on higher output at its only producing mine in Mexico and expects to make a mill expansion decision in the Q3.

Primero Mining Corp's first-quarter adjusted profit jumped nearly twelve-fold on higher production at its San Dimas gold-silver mine in Mexico, and said it expects to make a mill expansion decision in the third quarter.

Net profit was $18.6 million, or 21 cents per share, compared with a net loss of $7.9 million, or 9 cents per share, a year earlier.

On an adjusted basis, earning rose to $18.8 million, or 21 cents per share, from $1.6 million, or 2 cents per share, in the year-ago period.

Revenue for the company, whose only producing asset is the San Dimas mine, rose 29 percent to $44.0 million.

The San Dimas mine, which the company bought from Goldcorp Inc in 2010, produced 22,590 ounces of gold and 1.32 million ounces of silver, which was 10 percent and 7 percent higher, respectively, than the year-ago period.

The company still expects to produce 100,000 gold equivalent ounces to 110,000 gold equivalent ounces on cash costs of $630-$660 per gold equivalent ounce in the year.

Primero said earlier this year it would review the method used to estimate reserves at San Dimas, which had failed to meet forecasts over the past decade.

The mine has already produced about 11 million ounces of gold and 580 million ounces of silver, Primero said on its website.

Primero shares, which have fallen nearly 40 percent in the past year, closed at C$2.76 on Wednesday on the Toronto Stock Exchange.

Q1 copper sales at new record - Grupo Mexico

Despite substantial declines in metals prices, Grupo Mexico and its subsidiaries AMC and Southern Copper reported strong metals sales during the first quarter.

Mexican miner Grupo Mexico Wednesday reported at 35% increase in first quarter net income, as mining subsidiaries Southern Copper Corp. and Americas Mining Corporation (AMC) both reported increases in net income.

"Consolidated sales for Q1 2012 reached another record high of US$2.745 billion, a 10% increase over the previous year, despite a 14% drop in copper prices, 18% in molybdenum, and 16% in zinc," said Grupo Mexico in financials made public Wednesday.

"This increase was the result of greater production at all our mines and improved car and volumes transported by our Transportation Division, which grew 10% this quarter due to record investments during 2011."

First quarter net income for Grupo Mexico was reported at $716.5 million, up 35% from the first-quarter 2011 net income of $530 million.

AMC reported significant recovery in ore grades at all its mines during the first quarter, "and as a result, copper production increased 20%, silver 17%, gold 37% and sulfuric acid 20% when compared to 1Q11." During the first quarter, AMC copper sales increased from 178,729 metric tons in first-quarter 2011 to 216,474 metric tons.

AMC moly sales increased from 4,282 metric tons in the first quarter of last year to 4,609 metric tons in the first-quarter 2012. However, zinc sales declined from 24,682 metric tons in the first-quarter 2011 to 24,663 metric tons in the first-quarter 2012.

Silver production increased during the first quarter from 4 million ounces in Q1 2011 to 4.79 million ounces this quarter, while gold sales increased from 12,756 ounces during the first-quarter 2011 to 18,115 ounces for the first-quarter 2012.

AMC's first quarter US GAAP net income was reported at $614.6 million, up from $492.36 million for the comparable period last year.

On Monday, Southern Copper Corp. reported copper production rose 23% from 124,194 tons in first-quarter 2011 to 154,233 tons in the first-quarter 2012, "mainly because of better ore grades at our open pit mines and Buenavista operating at full capacity."

"Production of our three major by-products also increased: Molybdenum by 8%, silver by 17% and zinc by 13%," said SCC. The increase in moly production was attributed to higher ore grade and recovery, while the additional silver production was the result of higher production at SCC's Buenavista, Toquepala and Cuajone mines. The increased zinc production was mainly due to higher grades and recoveries and higher production at the Santa Eulalia mine.

Southern Copper reported a first-quarter 2012 net income of $621.4 million or 73-cents per share, a 30% increase over the first-quarter 2011 net income of $478.4 million or 56-cents.

Thursday, May 3, 2012

Grupo Mexico profit jumps 35% on higher production

Grupo Mexico, the conglomerate owned by the richest man in the world, Carlos Slim, reported a 35% jump in first-quarter profit, helped in part by higher mine production numbers.

The higher profit- $709 million compared to $524 million a year ago- came despite a 14% drop in copper prices, an 18% fall in molybdenum and a 16% slide in zinc. Grupo Mexico, which has mines in Mexico, the US and Peru, sold more copper, moly, silver and gold compared to a year ago, with the biggest increase in gold, a 42% lift. The only metal to decline in terms of sales was zinc, a 0.1% drop.

The group’s mining division, Americas Mining Corporation, reported the following highlights from Q1:

  • Mine Production.- In addition to Buenavista operating at full capacity, we had significant recovery in our ore grades in the 1Q12 in all of our mines, and as a result, copper production increased 20%, silver 17%, gold 37%, and sulfuric acid 20%, when compared to 1Q11.
  • Capital Expenditures.- During the 1Q12, the Mining Division invested US$199 million, mainly in the operations at Buenavista and Cuajone.
  • Industry Ethics and Values Award.- On January 20, Minera México received the ethics and values award given by the Mexican Confederation of Industrial Chambers (CONCAMIN), for excellence in social responsibility and sustainable development practices.
  • Minera México installs the largest photovoltaic cell system in Mexico.- The largest photovoltaic cell system in Mexico was installed, and it will supply clean energy to Minera México’s corporate regional offices in Hermosillo, Sonora. The system will prevent the release of 118 tons of carbon dioxide (CO2) into the atmosphere.

Grupo Mexico said it is bullish on the price of copper despite lower prices due to poor economic news and a stronger dollar. It bases that assessment on tighter supply due to anticipated bad weather, strikes, lower ore grades, delays in startups of new projects and better economic growth coming in the second half. The company also expects demand from China, the world’s largest copper consumer, to increase in Q2 and to hold steady for the rest of the year as the country makes necessary investments in energy and infrastructure.

Link to the full news release

Thursday, March 29, 2012

Primero gold-silver reserves, resources drop heavily after review

While reserves and resources fell, there was a silver lining to hope for: improved mine planning at San Dimas in Mexico.

HALIFAX, NS - A bid to improve predictability between resource model and active mining has lost Primero Mining (TSX: P) a hefty tally of gold and silver ounces.
Earlier this year Primero engaged an independent contractor, AMC Mining Consultants, to review its resource estimate of the San Dimas gold-silver mine in Mexico, which it bought from Goldcorp about two years ago.

The issue was a persistently spotty reconciliation between active mine and resource model. For Primero, which logged its first full year as a mine operator in 2011, that has meant lower than expected grades, which in part forced a revision to production guidance last year.
The review is now finished and, with a new system for calculating resources, Primero reports a major shake-up of its resources and reserves.
Before the review, Primero had counted in early 2011 proven and probable reserves of 886,000 ounces gold and 63 million ounces silver and inferred resources of 2 million ounces gold and 179 million ounces silver.
The new reserve and resource is considerably smaller: Primero now says there are 505,000 ounces gold and 32 million ounces silver in probable reserves, 577,000 ounces gold and 36.5 million ounces silver in indicated resources and 505,000 ounces gold and 32 million ounces silver in inferred resources. The resources include reserves.
Notably absent, are proven reserves and measured resources. To explain, Primero said, "The quality control and data verification review performed as part of the 2011 mineral resource and reserve estimation at San Dimas noted poor quality data. For this reason there are currently no measured resources, nor proven reserves stated."
The new resource - which uses block modeling instead of polygons - is "more tightly constrained," Primero says. In other words it should reflect the reality of the myriad veins at San Dimas better than the old resource model.
This is to be, it is hoped, the silver lining in the new, albeit smaller, resource. Primero, which acknowledged at the outset of the resources review exercise that it might lose resources and take a drop in resource and reserve categories, ultimately wants better mining control of its deposit rather than more ounces in theory but unwelcome surprises at the mine and mill.

In January Primero stated the review was "being driven by a desire to determine if greater operating predictability and improved mine planning can be achieved."
Primero President and CEO Joseph Conway hit the same chord in releasing the reduced reserves and resources. "While the new resource estimation has resulted in a reduction in and reclassification of resources and reserves, our improved understanding and the advancements in underground development should position (Primero) to convert resources and exploration potential into reserves in the near term," said Conway in a prepared statement.
Meanwhile, Primero also announced fourth quarter and full year financial and production results on Wednesday. Annual earnings were $67.8 million, while adjusted net earnings were $28.3 million. Primero produced 102,220 ounces gold in 2011.

And Primero said that with the new reserve and resource in hand, it would do detailed engineering on mill expansion scenarios from 2,050 tonnes per day to 2,500 or 3,000 tonnes per day. Primero said to expect a decision on whether it would proceed with the expansion during the third quarter this year.

Wednesday, March 14, 2012

Golden Minerals Appoints Construction Manager for Velardena

 

GOLDEN, CO - Golden Minerals Company ("Golden Minerals" or the "Company") (NYSE Amex: AUMN) (TSX: AUM) is pleased to announce the appointment of Jan Dahlgren as Construction Manager for its wholly-owned subsidiary, Minera William, at the Velardeña Project in northeastern Durango State, Mexico. Mr. Dahlgren brings worldwide experience to the Golden team, having worked during his career for Bechtel, Aker Solutions, Hatch, SNC Lavelin and others. He has held senior construction positions with dozens of large projects including Toromocho, Pierina, Tintaya, Antamina and Yanacocha in Peru as well as Pelambres, El Abra and La Candelaria in Chile. Mr. Dahlgren will report to David Drips, Project Director for Mexico, as the team aggressively expands the Velardeña silver and gold operations.

David Drips said, "Jan is a first class professional and we are delighted that he has joined the Golden team. Jan will ensure that our projects are executed on a timely basis with the utmost cost and productivity efficiency."

About Golden Minerals

Golden Minerals is a Delaware corporation based in Golden, Colorado, primarily engaged in the ramp-up and expansion of existing production at the Velardeña and Chicago Mines in Mexico and advancement of the evaluation stage El Quevar project in Argentina.

For additional information please visit http://www.goldenminerals.com/ or contact:

Monday, March 12, 2012

Mexico’s silver mines shine: ‘Mexico Mike’ Kachanovsky

Precious metals analyst “Mexico Mike” Kachanovsky, who opines on junior mining and exploration stocks at smartinvestment.ca, is bearish on the world economy, but bullish on mining stocks. Although he has seen a recent rise in narco-violence, in this exclusive interview with The Gold Report, Kachanovsky urges sensible investors to continue to look at firms exploring Mexican metal deposits because the upside is enormous.

The Gold Report: Last September, you predicted gold would rise above $2,000/ounce (oz) by the end of the year. It didn’t quite get there. What do you see as a price limit now?

Mike Kachanovsky: I also suggested that silver would hit $50/oz before the end of last year. I was dead wrong on that prediction as well. But my outlook hasn’t changed. It’s difficult to put a specific timeline on price trends. It’s more important to have confidence that the factors that have contributed to the rise in both gold and silver prices for the last decade are still in effect. What we can accurately predict is how factors driving these prices will play out, while sometimes delays and countertrends and mini bear markets occur along the way.

We are currently trading at a sideways consolidation for gold in the $1,600–1,700/oz range and silver $30–35/oz. I am confident that we are going to see a lot higher than $2,000/oz gold and higher than $50/oz silver. Metal trading is volatile. But I feel very strongly that before the end of 2012, we’ll see both of those levels surpassed.

TGR: You said in your September interview with The Gold Report that we’re likely in a double-dip recession. Is the global economic situation improving now or worsening?

MK: The United States is still in a recession. A lot of people have tempered their bearish sentiment because the official data suggests that things are getting better. A case in point is the way unemployment is calculated. It appears that the unemployment rate is falling because of the way government agencies classify and organize the data. But there are more people looking for work now than there were at this time last year.

There is lasting recession in Europe. There’s less spending. Gross domestic product is generally in decline. Worldwide, more people are unemployed and looking for work. That reality is not necessarily reflected in the data.

TGR: Are we headed into a triple-dip recession?

MK: No matter how you look at it, we are in a secular slump. It’s a real challenge. Decades of malinvestment and debt buildup have to be resolved. It’s going to take years before the economic foundation is reset for another period of growth.

TGR: Will another round of quantitative easing help?

MK: Quantitative easing has been in place all along, although it has not been officially acknowledged. But where’s the money coming from? Interest rates are being held at artificially low levels. The Federal Reserve prints money by buying bonds to keep the interest rates low. That officials have not acknowledged this fact does not mean that it’s not occurring.

TGR: How does quantitative easing affect mining stocks?

MK: In the wake of the first two rounds of quantitative easing, a lot of hot money started chasing natural resource stocks. Printing money contributes to inflation. One of the ways to protect against inflation is to be leveraged in commodities—real stuff, for lack of a better word. But the prices of oil and gas and gold and silver and metals and hard commodities rise in an inflationary environment. Speculators flock to resource stocks to protect against inflation and more inflation ensues.

TGR: What statistical indicators are key when looking at junior mining stocks?

MK: You can’t talk about junior mining stocks as a group. There are three different subsectors. The first subsector is the early stage explorers who don’t have any real assets. They control properties, and they’re spending money on defining a deposit. The second subsector is the emerging producers. These companies have recently commenced mining, and they generate money from operations. The third subsector is the established producers who have been around for a few years. They are far less risky. They are earning lots of money in the current metals price environment. They have strong balance sheets. Investors need to be aware of those distinctions. The early stage companies are attractive only if you’re going to be patient. It may take months or years before those stocks become market leaders.

TGR: Is it still possible to hit a homerun with an early stage company?

MK: Absolutely. History hasn’t changed. But you must be very selective. Look for companies that have management teams in place that can survive difficult times. Look at the property base—is there a legitimate chance of finding a deposit that has the magnitude to allow for a rapid up cycle in value? Be careful, but leverage to that sector, because that’s where the biggest money will come from eventually.

TGR: Your particular area of expertise is Mexico. How do you assess the physical and financial safety of mining ventures in Mexico, considering the drug wars?

MK: That’s the big question about the Mexico stocks. There is a perception that things are spinning out of control there. I travel to Mexico regularly to visit mining projects. For sure, the violence has intensified. In the past, people’s daily lives were not much affected by the gangs. Now rival gangs fight turf wars and the violence spills over into the daily lives of average people and businesses in Mexico. But, overall, it’s still contained.

It is still safe to walk the streets at night. Well, you do need to have your head on your shoulders. If you’re driving on a major highway at night, you are at risk of being carjacked. If you travel in certain parts of Mexico City, you’re asking for trouble. The senior executives of mining companies could be targets for kidnapping. I’m not aware of that happening yet, but many executives travel with armed security guards. If you are cautious, you can go about your business safely.

TGR: Have the drug wars affected labor pools in the rural areas of Mexico?

MK: Often people who are working in the mines have close relatives who are working with the drug cartels in the hills, growing marijuana. It’s unlikely that the drug gangs have a reason to target the local labor at the mine. People are very pragmatic. I’ve been in towns that are centers of the drug trade. In some ways, they are the safest places in all of Mexico, because the cartels won’t allow anything to get out of line.

TGR: What gold and silver mining production companies do you follow in Mexico?

MK: There is a basket of established midtier level companies that I like: First Majestic Silver Corp. (FR:TSX; AG:NYSE; FMV:FSE), Endeavour Silver Corp. (EDR:TSX; EXK:NYSE; EJD:FSE), Avino Silver & Gold Mines Ltd. (ASM:TSX.V; ASM:NYSE.A; GV6:FSE) and Great Panther Silver Ltd. (GPR:TSX; GPL:NYSE.A).

TGR: What do you like about these companies?

MK: They have recurring production in place. They are profitable. They have fantastic leverage to the upside for future discovery. Their strong balance sheets enable them to look further afield, to make acquisitions of late-stage deposits that have been stalled and can’t move forward without more money. They’ve just been huge winners.

TGR: What’s been the effect on Avino’s prospects after being listed on the various stock exchanges?

MK: Anytime a junior mining stock secures a listing on a major exchange, like the NYSE, it increases that firm’s pool of investors. I mentioned Endeavour and First Majestic and Great Panther. After these companies secured senior listings, their share prices went up substantially. I expect Avino to attract a larger following, causing its share price to increase.

TGR: Are there any other catalysts for Avino this year?

MK: Avino has had limited production. The company needed to reach an agreement with the landowner about dividing up royalties for its main mine. A few days ago, Avino announced it has reached that agreement. It is going to resume production from two separate mining zones, instead of just one. When Avino runs larger tonnage of ore through the processing plant, its unit costs will go down. Profit margins should improve.

TGR: Does Endeavour Silver still have some upside left to it?

MK: Endeavour trades at a higher price than Avino because it has more magnitude. But four years ago, Endeavour was where Avino is today. Avino has a growth path firmly in place, and it can advance to the next level. Five years ago, First Majestic was where Avino is today: it had one major mine that was expanding. First Majestic went on to acquire other assets. It achieved the $1 billion+ valuation that it has today. These companies are all pretty much following the same path.

TGR: And is Great Panther on that same path? Does it still have upside ahead?

MK: Absolutely. We’re waiting for consolidation. A number of the smaller mines are starting to make money, but not as efficiently as they would under the umbrella of a single company. We recently saw a first indication of consolidation, when Minefinders Corp. (MFL:TSX; MFN:NYSE) announced that it had been acquired by Pan American Silver Corp. (PAA:TSX; PAAS:NASDAQ). I suggest that Avino is either going to be a takeover target, or it is going to start acquiring weaker companies to build growth.

TGR: Who could take over Avino?

MK: Any company that has a strong balance sheet that is looking to grow its total production by adding over a million ounces of silver a year. I don’t necessarily think Avino will be a target for Pan American Silver or Goldcorp Inc. (G:TSX; GG:NYSE). But, Avino could partner with other mid-size producers. There’s probably a dozen companies that could see an incremental value by bringing Avino under their umbrellas.

TGR: Galore Resources Inc.’s (GRI:TSX.V) Dos Santos project is next to Goldcorp’s successful Peñasquito mine. Is there a catalyst that would allow the market to value Dos Santos more in line with Peñasquito?

MK: Galore might get a higher speculative premium based on its proximity to large deposits in Mexico. Unfortunately, that hasn’t happened yet. But Galore has drill programs in place that are capable of hitting a big new discovery zone.

A general catalyst would be for gold and silver to break out of its range, reaching a new high. And, again, that could happen very quickly. That could happen when all of the analysts are expecting lower prices and, out of the blue, a strong uptrend kicks off when no one is expecting it.

TGR: Do you see that happening this year?

MK: No. But, again, trying to put a timeline of a specific year on any stock or price target is just inviting yourself to look bad. The present pause in the bull market is long in the tooth. At some point, valuations will snap back in line with a strong bull market. I’m being cautious because there are existential issues on the economic radar screen, like Europe.

Interestingly, another catalyst that makes a difference is when a high-profile newsletter writer or analyst recommends a stock. Higher share price generates more money to work on finding metal.

TGR: Is the opposite also true? If newsletter writers frown on a company, does that affect its stock price?

MK: Oh, for sure it does. Analysis is a double-edge sword. Most analysts, including me, are biased toward finding good companies to talk about instead of being quick to pan a stock or to suggest that it doesn’t have the goods. The vast majority of these mining companies are run by sincere, qualified, capable people who are doing their very best to move companies forward in a very difficult market. I think it’s a very rare situation when you have a real problem in any of these stocks that would warrant putting a sell on it.

TGR: Do you have any thoughts about what has given MAG Silver Corp. (MAG:TSX; MVG:NYSE) and Geologix Explorations Inc. (GIX:TSX) recent bumps in the market?

MK: MAG Silver went up after announcing exploration success at the Cinco de Mayo project. It has a molybdenum resource there. It started to find polymetallic resource zones that previously had not been valued in the stock price. It looks like MAG has a second major discovery underway, in addition to its Juanicipio project, which was a company maker.

With Geologix, there’s about 1.5 million ounces gold and significant copper at its Tepal prospect. The company has outlined new target areas. That is contributing to its slightly stronger share price.

The entire exploration sector is trading at almost bear market lows. They’re all representing fantastic opportunities. It’s just a question of waiting it out and letting the sector rotation do its thing. Eventually, the market will rediscover these stories and get excited again about them.

TGR: What about Southern Silver Exploration Corp.’s (SSV:TSX.V; SEG:FSE) partnership with Freeport McMoRan Copper & Gold Inc. (FCX:NYSE)? Is that a positive sign?

MK: It’s a great sign for Southern Silver, because anytime you can close a deal with a senior producer you are getting somebody else’s money to advance a project. Southern Silver has a number of attractive projects in Mexico. Any one of them could yield a major discovery.

TGR: What producers do you like north of the border?

MK: I like companies that have production in place and are making money and showing a strong growth curve. I’m extremely excited about Revett Minerals Inc. (RVM:TSX; RMV:NYSE.A). My optimism is based on the fact that Revett is leveraged to both silver and copper. Both metals are headed for all time highs in the months ahead, in my opinion. The company is debt free and it’s profitable. Plus, its mineral inventory is large enough to sustain it for decades. And it looks like it is getting very close to receiving the green light on its Rock Creek project. That mine, on its own, has the potential to elevate Revett to the stage of a midtier producer.

TGR: Revett’s stock price increased 500% in the last year.

MK: Part of the reason Revett’s stock price went up is because it had a share rollback. The share price roughly doubled, because its risk went down. The firm paid off its debt. It built a cushion of cash in the balance sheet. It operated profitably and efficiently.

TGR: I’ve noticed that Scorpio Gold Corp. (SGN:TSX.V) in Nevada has enjoyed a steady rise in share price over the last year. Any thoughts about what’s backing that?

MK: I visited that project last December. I like Scorpio because it is located in Nevada, which is very friendly to mine development. It’s a very low tech operation. It’s a conventional open-pit mine that has a relatively low strip ratio. It’s low cost to run. Scorpio’s gold recoveries are running at a fairly high level. It is drilling other expansion zones on its current open-pit mine. And, it is developing a second nearby satellite pit with a currently defined deposit. It still has some debt on its books and some of its monthly production is deployed to pay down that loan. But when that loan is paid off, in a year or so, Scorpio is going to be a cash-flow factory.

TGR: What are your current top picks?

MK: I bought more shares in Revett Minerals this week. I bought more Silver Wheaton Corp. (SLW:TSX; SLW:NYSE), which is a royalty play. It’s not even a mining company. But, it has a strong outlook for an even higher share price in the future. Buying the lows makes great sense now. I have not bought any Scorpio Gold, but if it dips in price, I’m going to buy it. I bought more Avino Silver at the end of last year. I bought some Agnico-Eagle Mines Ltd. (AEM:TSX; AEM:NYSE), which is a gold miner that has seen its share price cut almost in half over the last six months. But it remains a very high quality company.

TGR: Do you tend to hold junior mining stocks for a while?

MK: Most of these companies I’ve owned for five years or more. I also have an active trading portion of my portfolio. When the market corrects, I can buy low. And I sell holdings during speculative highs. That is the nature our market. It can be volatile. We do not have to like it, but we have to acknowledge it and accept it is what it is: three steps forward and two steps back.

TGR: Thanks for sharing your insights.

“Mexico Mike” Kachanovsky is a consultant providing analysis of junior mining and exploration stocks. His work is published on a freelance basis in a variety of publications, including the Mexico Mike column in Investor’s Digest of Canada. He is a founder of www.smartinvestment.ca, which serves as an online community for the discussion of all topics relating to junior mining stocks.

Want to read more exclusive Gold Report interviews like this? Sign up for our free e-newsletter, and you’ll learn when new articles have been published. To see a list of recent interviews with industry analysts and commentators, visit our Exclusive Interviews page.

DISCLOSURE:
1) Peter Byrne of The Gold Report conducted this interview. He personally and/or his family own shares of the following companies mentioned in this interview: None.
2) The following companies mentioned in the interview are sponsors of The Gold Report: Endeavour Silver Corp., Avino Gold & Silver Mines Ltd., Great Panther Silver Ltd., Minefinders Corp., Goldcorp Inc., Galore Resources Inc., MAG Silver Corp., Geologix Explorations Inc., Southern Silver Exploration Corp., Revett Minerals Inc., Scorpio Gold Corp. Streetwise Reports does not accept stock in exchange for services.
3) Mike Kachanovsky: I personally and/or my family own shares of the following companies mentioned in this interview: First Majestic Silver Corp., Endeavour Silver Corp., Avino Gold & Silver Mines Ltd., Galore Resources Inc., MAG Silver Corp., Revett Minerals Inc., Great Panther Silver Ltd., Silver Wheaton Corp., Agnico-Eagle Mines Ltd. I personally and/or my family am paid by the following companies mentioned in this interview: Avino Gold & Silver Mines Ltd. is a paid advertiser on my website. I was not paid by Streetwise Reports for participating in this story.

Streetwise – The Gold Report is Copyright © 2012 by Streetwise Reports LLC. All rights are reserved. Streetwise Reports LLC hereby grants an unrestricted license to use or disseminate this copyrighted material (i) only in whole (and always including this disclaimer), but (ii) never in part.

The Gold Report does not render general or specific investment advice and does not endorse or recommend the business, products, services or securities of any industry or company mentioned in this report.

From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles on the site, may have a long or short position in securities mentioned and may make purchases and/or sales of those securities in the open market or otherwise.

Streetwise Reports LLC does not guarantee the accuracy or thoroughness of the information reported.

Streetwise Reports LLC receives a fee from companies that are listed on the home page in the In This Issue section. Their sponsor pages may be considered advertising for the purposes of 18 U.S.C. 1734.

Source: The Gold Report

Sunday, March 4, 2012

North Springs Resources Receives Positive Independent Review of Producing Gold and Silver Properties in Chihuahua Mexico

LAS VEGAS, NEVADA--(March 4, 2012) - North Springs Resources Corp. (OTCBB:NSRS) (PINKSHEETS:NSRS) (the "Company" or "North Springs") is pleased to announce that it has received the final draft of a positive geological review regarding the Company's recently acquired 10% interest in an option on various producing gold and silver properties in Chihuahua, Mexico. The Company initiated geological review was completed as part of the acquisition due diligence process and was conducted by an independent accredited geologist licensed by the Mexican Mining Authority. The independent review has validated prior representations made by Hyperion Management Mining S.A. regarding the combined inferred reserve estimates for the properties.

"The positive conclusion of this independent project review conducted by a qualified Mexican geologist has validated our own positive assessment of the Chihuahua gold and silver properties," stated Harry Lappa, President of North Springs. "We look forward to working with our new partners to develop these properties to their full potential."

Further updates regarding the Chihuahua Properties and other North Springs projects will be made as additional information becomes available.

About North Springs Resources Corp.

North Springs Resources Corp. is focused on the evaluation, acquisition, exploration, and development of mineral resource properties. The Company is led by a skilled and experienced management team and independent consulting geologists with many years of experience. North Springs is committed to creating value for its shareholders by advancing its current holdings and by acquiring new properties with significant potential.

For additional information, please visit www.northspringsresources.com.

Harry Lappa, President

THIS NEWS RELEASE CONTAINS "FORWARD-LOOKING STATEMENTS", AS THAT TERM IS DEFINED IN SECTION 27A OF THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, AND SECTION 21E OF THE UNITED STATES SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. STATEMENTS IN THIS NEWS RELEASE, WHICH ARE NOT PURELY HISTORICAL, ARE FORWARD-LOOKING STATEMENTS AND INCLUDE ANY STATEMENTS REGARDING BELIEFS, PLANS, EXPECTATIONS OR INTENTIONS REGARDING THE FUTURE. EXCEPT FOR THE HISTORICAL INFORMATION PRESENTED HEREIN, MATTERS DISCUSSED IN THIS NEWS RELEASE CONTAIN FORWARD-LOOKING STATEMENTS THAT ARE SUBJECT TO CERTAIN RISKS AND UNCERTAINTIES THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM ANY FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS EXPRESSED OR IMPLIED BY SUCH STATEMENTS. STATEMENTS THAT ARE NOT HISTORICAL FACTS, INCLUDING STATEMENTS THAT ARE PRECEDED BY, FOLLOWED BY, OR THAT INCLUDE SUCH WORDS AS "ESTIMATE," "ANTICIPATE," "BELIEVE," "PLAN" OR "EXPECT" OR SIMILAR STATEMENTS ARE FORWARD-LOOKING STATEMENTS. RISKS AND UNCERTAINTIES FOR THE COMPANY INCLUDE, BUT ARE NOT LIMITED TO, THE RISKS ASSOCIATED WITH NATURAL RESOURCE EXPLORATION AND DEVELOPMENT AND NEEDS FOR FUNDING AS WELL AS THE RISKS SHOWN IN THE COMPANY'S MOST RECENT ANNUAL REPORT ON FORM 10-K AND ON FORM 10-Q AND FROM TIME-TO-TIME IN OTHER PUBLICLY AVAILABLE INFORMATION REGARDING THE COMPANY. OTHER RISKS INCLUDE RISKS ASSOCIATED WITH THE REGULATORY APPROVAL PROCESS, COMPETITIVE COMPANIES, FUTURE CAPITAL REQUIREMENTS AND THE COMPANY'S ABILITY AND LEVEL OF SUPPORT FOR ITS EXPLORATION AND DEVELOPMENT ACTIVITIES. THERE CAN BE NO ASSURANCE THAT THE COMPANY'S DEVELOPMENT EFFORTS WILL SUCCEED AND THE COMPANY WILL ULTIMATELY ACHIEVE COMMERCIAL SUCCESS. THESE FORWARD-LOOKING STATEMENTS ARE MADE AS OF THE DATE OF THIS NEWS RELEASE, AND THE COMPANY ASSUMES NO OBLIGATION TO UPDATE THE FORWARD-LOOKING STATEMENTS, OR TO UPDATE THE REASONS WHY ACTUAL RESULTS COULD DIFFER FROM THOSE PROJECTED IN THE FORWARD-LOOKING STATEMENTS. ALTHOUGH THE COMPANY BELIEVES THAT THE BELIEFS, PLANS, EXPECTATIONS AND INTENTIONS CONTAINED IN THIS NEWS RELEASE ARE REASONABLE, THERE CAN BE NO ASSURANCE THOSE BELIEFS, PLANS, EXPECTATIONS OR INTENTIONS WILL PROVE TO BE ACCURATE. INVESTORS SHOULD CONSIDER ALL OF THE INFORMATION SET FORTH HEREIN AND SHOULD ALSO REFER TO THE RISK FACTORS DISCLOSED IN THE COMPANY'S PERIODIC REPORTS FILED FROM TIME-TO-TIME WITH THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION.

THIS NEWS RELEASE HAS BEEN PREPARED BY MANAGEMENT OF THE COMPANY WHO TAKES FULL RESPONSIBILITY FOR ITS CONTENTS. FINRA, THE SEC AND THE OTCBB NEITHER APPROVES NOR DISAPPROVES THE CONTENTS OF THIS NEWS RELEASE. THIS NEWS RELEASE SHALL NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY NOR SHALL THERE BE ANY SALE OF THESE SECURITIES IN ANY JURISDICTION IN WHICH SUCH OFFER, SOLICITATION OR SALE WOULD BE UNLAWFUL PRIOR TO REGISTRATION OR QUALIFICATION UNDER THE SECURITIES LAWS OF ANY SUCH JURISDICTION.

Thursday, March 1, 2012

Mining output up 5.4% in Dec, 17.6% in 2011

Mexico's mining and metals output in December 2011 increased 5.4% year-on-year, according to national statistics bureau Inegi.
Non-coking coal output soared 49.3% year-on-year to 1.59Mt, copper jumped 39.2% to 36,983t, sulfur rose 19.2% to 85,828t and gypsum increased 6.4% to 382,179t, Inegi said in a statement.

Gold output fell 8.7% to 6,688kg (215,024oz) but silver rose 5.4% to 349,572kg.
Pellet production plummeted 26.6% to 491,552t, lead plunged 23.8% to 11,625t, zinc dropped 14.7% to 38,513t, coke declined 1% to 140,298t and fluorite fell 0.4% to 93,735t.

2011 PRODUCTION

Overall mining and metals output in 2011 rose 17.6% compared to the prior year.
Copper (+68.3%), non-coking coal (+55.8%) and gypsum (+19.5%) showed the largest increases in 2011. The only declines in the period were posted by sulfur (-3.6%), zinc (-3.5%) and pellets (-2.6%).

To read the full statement, in Spanish, go to this link

Monday, February 27, 2012

Junior exploration roundup: Vista, Cream, Batero

US-based Vista Gold (TSX, Amex: VGZ) announced additional results from the ongoing drilling program at the Guadalupe de los Reyes gold-silver project in Sinaloa, Mexico.
Gold equivalent highlights included 2m of 22.6g/t, 8.9m of 15.7g/t, including 5.3m grading 24.5g/t, and 15m of 5.51g/t, including 6.3m of 11.0g/t, Vista said in a statement.
***
Vancouver's Cream Minerals (TSX-V: CMA, OTC.BB: CRMXF) announced in-fill drill results for four holes testing the Once Bocas North zone at the Nuevo Milenio project in Mexico.
Highlights included 63.7g/t silver and 0.30g/t gold over 22m, including 114g/t silver and 0.55g/t gold over 8m, and 259g/t silver and 1.28g/t gold over 2m; 53.4g/t silver and 0.37g/t gold over 8m, including 185g/t silver and 1.05g/t gold over 2m; and 70.9g/t silver and 0.51g/t gold over 4m, including 110g/t silver and 0.53g/t gold over 2m, Cream said in a statement.
***
Vancouver-based Batero Gold (TSX-V: BAT) announced the initial NI 43-101 compliant resource estimate for the Batero-Quinchía project in Risaralda, Colombia.
Indicated resources total 249Mt grading 0.44g/t gold, 1.54g/t silver and 0.08% copper containing 3.55Moz, 12.3Moz and 438Mlb (198,673t), respectively, Batero said in a statement.
Inferred resources amount to 242Mt grading 0.33g/t gold, 1.8g/t silver and 0.06% copper containing 2.59Moz, 14Moz and 320Mlb, respectively.

To read the full statement, go to this link