Southwest US snapshot: Eight companies to watch

The U.S. Southwest is among the top mining regions in North America, with mine operations dating back to the 19th century. Here’s a glimpse of eight companies exploring for precious metals, base metals and lithium in the states of Nevada, Arizona, California and New Mexico. 

APOLLO SILVER  

Vancouver-based Apollo Silver (TSXV: APGO, US-OTC: APGOF) is working to upgrade and expand an initial inferred resource estimate for its Calico silver project in California’s San Bernadino County. To that end, the junior completed a 4,820-metre reverse-circulation (RC) drill program in November.

Announced in February, the inferred resource at Calico totals 166 million oz. of silver contained in 58.1 million tonnes grading 89 grams silver per tonne. The optimized, pit-constrained estimate is based on 42,091 metres of historic drilling in 438 holes, with a cut-off grade of 50 grams silver per tonne. According to Apollo CEO Tom Peregoodoff, the estimate “confirms Calico as one of the largest undeveloped silver deposits in the U.S. and positions Calico as one of the largest globally.”

The most recent drill program, which began in September and included 44 RC holes, followed a 5,021-metre, 44-hole reverse-circulation drill program that the company says confirmed the grade, continuity and predictability of the current resource.  

Apollo expects to release an updated resource estimate in the first quarter of 2023.

The Calico project, located 15 km east of the city of Barstow, comprises the adjacent Waterloo and Langtry properties covering 12 sq. km. Apollo controls approximately 6 km in mineralized strike length of a district-scale mineral system featuring low-sulphidation, silver-dominant epithermal vein-type and disseminated-style deposits.

The Waterloo property was acquired in July 2021 through an asset purchase agreement between Apollo subsidiary Stronghold Silver USA and Pan American Minerals, a subsidiary of Pan American Silver (TSX: PAAS, NASDAQ: PAAS) with the latter retaining a 2% net smelter royalty. The Langtry property comprises 20 patented claims, and 38 unpatented lode mining claims are subject to option agreements with Athena Minerals and a private trust.

The Apollo subsidiary also has an option agreement with Gulf + Western Industries to earn a 100% interest in the 8.1-sq.-km Arizona Silver District project 48 km north of the city of Yuma in La Paz County, AZ.  

Apollo’s near-term exploration plan for the Arizona Silver District project includes a desktop review of historical data, surface geological investigation and compilation of all geological data into a preliminary 3-D geological model. The Arizona Silver District project was discovered in 1862 and both mined and explored by a succession of companies over the following half century.

Apollo Silver has a market capitalization of $21.8 million.

AMERIWEST LITHIUM

Results from a magnetotelluric geophysical study at Ameriwest Lithium’s (CSE: AWLI, US-OTC: AWLIF) Edwards Creek Valley property 193 km east of Reno, NV, delineated “a large near-surface brine target that appears to be almost 20 sq. km in size,” according to an Oct. 5 press release issued by the company.

High electrical conductivity revealed by the study is known to be caused by the presence of highly saline water within the pores of a host reservoir, prompting Vancouver-based Ameriwest to follow up with permitting for a drill program. The Edwards Creek property consists of 1,243 contiguous claims totalling 90 sq. km.

Ameriwest Lithium is also exploring three additional properties in Nevada, including the 62-sq.-km Railroad Valley lithium brine project, the 23.3-sq.-km Little Smoky Valley lithium clay project and the 30-sq.-km Deer Musk East lithium brine project.

Deer Musk East, which consists of 275 claims spanning 22.2 sq. km, is in Nevada’s Clayton Valley, 8 km east of Albemarle’s (NYSE: ALB) Silver Peak operation, North America’s only producing lithium mine. Other companies in the crowded Clayton Valley include Cypress Development (TSXV: CYP, US-OTC: CYDVF), Pure Energy Minerals (TSXV: PE, US-OTC: PEMIF), and Noram Lithium (TSXV: NRM, US-OTC: NRVTF).

Ameriwest is also exploring the 28-sq.-km Thompson Valley lithium clay property in west-central Arizona, where it discovered significant lithium concentrations as a result of a geologic mapping and initial surface sampling program initiated in June. Assay results from 44 grab samples showed lithium content as high as 1,670 parts per million (ppm), and 12 samples with lithium content greater than 500 ppm.

A Sept. 7 press release issued by the company announced the receipt of six additional mineral exploration permits by the Arizona State Land Department to allow the company to expand its exploration for lithium deposits in and around the Thompson Valley property.

Ameriwest Lithium has a market capitalization of $22.6 million.

ARIZONA METALS

Toronto-based Arizona Metals (TSX: AMC, US-OTC: AZMCF) expects to begin a 76,000-metre drill program in next year’s first quarter to test the Western and Central targets of its Kay Mine project, located in Yavapai County, AZ. The steeply dipping gold-copper-zinc VMS deposit lies about 74 km north of Phoenix. Two new drill pads 1.2 km from the historic Kay Mine deposit have been approved by the Arizona Bureau of Land Management and a road to the site is under construction.

The company noted in an Oct. 31 press release that it had $60 million in cash to complete the remaining 18,000 metres of its second-phase drill program as well as the additional 76,000 metres of its $27 million third-phase program.

Drill results reported earlier in October include 4.2 grams gold per tonne equivalent over 39 metres from a depth of 649 metres, including higher grade intervals of 7.2 metres grading 6 grams gold per tonne equivalent and 9.8 metres grading 6.1 grams gold per tonne equivalent. Another hole intersected 7.9 metres grading 4% copper equivalent from a depth of 682 metres.

The Kay Mine operated in the early to mid 1900s, was explored by Exxon Minerals from 1972 to 1974 and changed hands several times from 1990 to September 2018, when Arizona Metals acquired the property from Silver Spruce Resources (TSXV: SSE). Arizona Metals has a 100% interest in the project, which includes a combination of patented and Bureau of Land Management claims covering 5.3 sq. km.

An historic estimate (not compliant with NI 43-101 standards) by Exxon claimed a proven and probable reserve of 6.4 million short tons of ore grading 2.2% copper, 2.8 grams gold per tonne, 3.03% zinc and 55 grams silver.

Arizona Metals also has a 100% interest in the Sugarloaf Peak property in La Paz County, AZ, 129 km west of Phoenix. A heap-leach open-pit target, Sugarloaf Peak has an unverified historic estimate of 100 million tons containing 1.5 million oz. of gold at a grade of 0.5 grams per ton.

Arizona Metals has a market capitalization of $477.5 million.

ARIZONA SONORAN COPPER

Arizona Sonoran Copper (TSX: ASCU; US-OTC: ASCUF) recently filed a resource estimate for its Cactus project, 70 km south of Phoenix, that included an initial resource for the nearby Parks/Salyer deposit. The combined resource pegs total indicated resources at 151.8 million tons grading 0.531% copper and inferred resources at 449.9 million tons grading 0.544% copper. (The figures include both leachable and primary material.) The Parks/Salyer deposit is located 2 km southwest of the 100%-owned Cactus project on the same privately held, 19.6-sq. km property 70 km south of Phoenix.

Arizona Sonoran acquired the Cactus project, formerly known as the Sacaton mine, from ASARCO Trust in July 2020 and began exploring the Parks/Salyer target in 2021. The Parks/Salyer initial resource of 143.6 million tons grading 1.015% copper was based on 31 drill holes totaling 20,271 metres at 152.4-metre spacings, but a follow-up, infill drill program of 32,000 metres is currently underway to upgrade the resource to the indicated category. The company is also working toward completing a prefeasibility study in late 2023 or the first half of 2024.  

Initial assay results from the infill drill program, scheduled for completion by year end, include 217 metres at 1.01% total copper, 0.9% total soluble copper and 0.024% molybdenum (enriched).

“The recently issued maiden mineral resource estimate for Parks/Salyer combined with the resource estimate at Cactus has now catapulted the combined projects to a size that would make it the fourth largest independent copper deposit in the USA with a total copper resource of 4.9 billion lb. inferred and 1.6 billion lb. indicated,” said George Ogilvie, Arizona Sonoran president and CEO in a Nov. 2 press release. “The high-grade nature of the Parks/Salyer mineral resource inventory,” he added, “offers significant potential to increase scale within an integrated operation.”

An earlier preliminary economic assessment (PEA) completed in the third quarter of 2021 for the Cactus project itself projected an 18-year mine life and the production of an estimated 56 million lb. of copper annually from stockpiled ore, open pit and underground production. The PEA contemplated heap-leaching of the oxides and enriched material followed by solvent extraction and electrowinning.  

The Sacaton open pit was operated by ASARCO from 1972 to 1984, when it was shut down due to economic conditions.

Arizona Sonoran Copper has a market capitalization of $187.3 million.

BLACKROCK SILVER

A 9,300-metre exploration drill program at Vancouver-based Blackrock Silver’s (TSXV: BRC, US-OTC: BKRRF) 21-sq.-km Tonopah North project in west-central Nevada has revealed significant lithium potential to go along with its 42.6 million oz. silver-equivalent inferred resource at its adjacent Tonopah West project.

The 20-hole, reverse-circulation drill program intersected values of up to 1,217 parts per million (ppm) lithium and broad zones of mineralization up to 56.4 metres thick, with lithium-bearing zones coming to within 8 metres from surface and down to a depth of 117 metres. In an Oct. 25 press release, the company notes that the mineralization is similar to American Lithium’s (TSXV: LI, OTC: LIACF) TLC deposit 3 km to the northeast.

“Blackrock’s project portfolio now consists of the highest-grade undeveloped silver project in the world in addition to what’s emerging as a potentially significant new lithium discovery right next door,” said Blackrock Silver president and CEO Andrew Pollard. “This positions Blackrock as one of the most unique companies in the emerging green metals space…”

The Tonopah West project hosts a stope optimized inferred resource estimate of 3 million tonnes at a block diluted grade of 208 grams silver per tonne and 2.5 grams gold for 19.9 million oz. of silver and 238,000 oz. of gold.

One drill hole from an ongoing 25,000-metre step-out and infill drill program reported on Oct. 18 intersected 0.91 metre of 37.86 grams gold per tonne and 2,740 grams silver (or 6,526.7 grams silver equivalent) within 1.5 metres grading 22.88 grams gold per tonne and 1,654 grams silver (3,942.2 grams silver equivalent) starting at 191.4 metres down hole.

The famed Tonopah Silver District produced more than 174 million oz. of silver and 1.8 million oz. of gold from roughly 7.5 million tonnes of ore between 1901 and 1950.

Since 2020, Blackrock has completed more than 120,000 metres of drilling on the property.

The company also controls the 49-sq.-km Silver Cloud project in north-central Nevada with multiple high-grade gold intercepts. The property is centred on the Northern Nevada Rift adjacent to Hecla Mining’s (NYSE: HL) operation.

Blackrock Silver has a market capitalization of $86.7 million.

SUMMA SILVER

Summa Silver (TSXV: SSVR, US-OTC: SSVRF) continues to report high-grade silver and gold intervals in drilling at its Mogollon and Hughes projects in New Mexico and Nevada, respectively.

The Vancouver-based junior announced on Sept. 28 that it had begun an 11 to 25-hole drill program at Mogollon to test an area measuring 500 metres along strike and 350 metres up and down dip at a spacing it believes will support a potential resource estimate. Results from a six-hole drill program reported earlier this year included 129 grams silver per tonne and 3.88 grams gold over 31 metres in hole MOG22-05; and 220 grams silver and 2.7 grams gold over 11.6 metres in hole MOG21-04.

The Mogollon property is located 120 km from Silver City in southwestern New Mexico and is the site of the historic Consolidated mine, which shut down prematurely in 1942 due to the cessation of all gold and silver mining in the U.S. at that time. Summa Silver has an option to earn a 100% interest in the property, which produced 16.4 million oz. of silver and 339,000 oz. of gold at grades of 298 grams silver per tonne and 6.16 grams gold (or 795 grams silver equivalent) between the 1880s and 1942.

Rock sampling by Summa Silver at Mogollon has also identified a number of vein extensions containing high-grade mineralization, including one sample returning 4,058 grams silver equivalent along the 2-km strike length of the Great Western Vein and another returning 2,116 grams silver equivalent along a 1.5-km strike length of the Maud South Vein. The company notes that none of the identified vein extensions have been drill tested.

At its 100%-owned Hughes project in Nevada’s Tonopah District, Summa Silver reported drill results of 535 grams silver equivalent over 4.6 metres and 496 grams silver equivalent over 0.5 metre from an eight-hole drill program on Sept. 13. The Hughes project is host to the high-grade past producing Belmont mine, one of the most prolific silver producers in the U.S. between 1903 and 1929. Historical production from the Tonopah District totals 175 million oz. of silver and 1.9 million oz. of gold from 8.8 million tonnes grading 679 grams silver per tonne and 7.3 grams gold.

Summa Silver has a market capitalization of $54.1 million.

NEVADA SUNRISE METALS

Nevada Sunrise Metals (TSXV: NEV, US-OTC: NVSGF) began a follow-up drill program of up to six holes at its 100%-owned Gemini lithium project in Esmeralda County, NV, in October. The 2,439-metre drill program will test lithium-bearing brine and sediments at depths beyond previous drilling and aid in determining the lateral extent of the mineralization.

Results from an initial, two-hole reverse-circulation drill program carried out in March and April at Gemini include a weighted average of 1,203.41 ppm lithium over 176.8 metres in borehole GEM22-01 and a weighted average of 1,101.73 ppm lithium over 222.56 metres in borehole GEM22-02.

The Gemini project consists of 582 unpatented placer and lode claims covering 23 sq. km and is located 10 km east of Lida and 35 km southeast of Albemarle’s Silver Peak lithium mine.

The Vancouver-based company also has interests in several other properties in Nevada, including 100% of the Jackson Wash lithium and Coronado VMS projects, 20% of the Kinsley Mountain gold project, and a 15% interest in both the Lovelock Cobalt mine and Treasure Box copper projects.

Jackson Wash, located in the Lida Valley, 30 km southeast of the Silver Peak mine, consists of 49 unpatented placer claims totalling around 4 sq. Km. Coronado consists of 133 unpatented claims totalling 10.8 sq. km adjacent to the historic Big Mike open pit copper mine in Pershing County, 48 km southeast of Winnemucca.

Kinsley Mountain, located in Elko County and co-owned by Copaur Minerals (TSXV: CPAU, US-OTC: COPAF) has a February 2020 resource estimate of 5 million tonnes grading 2.63 grams gold per tonne for 418,000 oz. of gold. The deposit produced 138,000 oz. of gold in the early 1990s and a 28,000-metre drill program was carried out by previous owner Liberty Gold (TSX: LGD, US-OTC: LGDTF) between 2011 and 2013.    

Nevada Sunrise has a market capitalization of $23.1 million.

NEVADA KING GOLD

On Nov. 1, Nevada King Gold (TSXV: NKG, US-OTC: NKGFF) announced an extension of its definition drilling program at its wholly-owned Atlanta gold mine project in the prolific Battle Mountain Trend, 246 km northeast of Las Vegas. Based on positive initial assay results, numerous high-priority targets still to be tested and the early completion of the 100-hole, 13,100-metre program, the company elected to continue drilling as long as the weather remains favourable. It now anticipates drilling a total of 16,000 metres as part of the program.

Early assay results at Atlanta include high-grade oxide-hosted intervals of 120.4 metres of 1.49 grams gold per tonne and 57.9 metres of 1.38 grams gold located south and southeast of the Atlanta pit, as well as 54.9 metres of 3.41 grams gold, 50.3 metres of 2.65 grams gold and 51.8 metres of 2.23 grams gold starting from surface at the bottom of the pit.

“Drill results continue to demonstrate a strongly mineralized system that is open in all directions,” said exploration manager Cal Herron in a release. “With each drill hole, we are gaining a better understanding of the geology, controls on mineralization and grade distribution…”

The Atlanta mine is a former gold-silver producer with an October 2020, pit-constrained resource. The project hosts a measured and indicated resource of 460,000 oz. of gold in 11 million tonnes grading 1.3 grams gold per tonne. Inferred resources add 142,000 oz. of gold in 5.3 million tonnes grading 0.83 grams gold.

Nevada King is also drilling its 100%-owned Lewis and Iron Point gold projects. The company began a 4,500-metre drill program at Lewis, located 21 km south of Battle Mountain, NV, in August, with results pending. It also conducted a 4,000-metre deep-drilling program at Iron Point, 35 km east of Winnemucca, that confirmed Carlin-type gold mineralization hosted in Lower Plate carbonate rocks..

Nevada King, which claims to be the third biggest landholder in Nevada, also owns or controls eight other properties in the state.

Nevada King Gold has a market capitalization of $78 million.