Starcore International Mines (TSX:SAM) has entered a non-binding letter of intent to lease the San Juan Nepomuceno Project, otherwise known as the Tortilla Project, from Manuel Felipe Arreguin Martinez through its wholly owned subsidiary Compañia Minera Peña de Bernal.
The lease will offer Starcore six mineral claims and two properties 150km from Santiago de Queretaro, in Queretaro, Mexico.
Starcore will pay around $407,666 in total for a 10 year lease, comprising $163,070 towards a definitive agreement by 24 July and $40,767 each month across the first six months following the agreement.
Martinez will receive 2% of net smelter return on products produced at the project and maintains the option to sell landholdings to Starcore for US$7 million ($10.62 million).
CEO Robert Eadie believes the Tortilla Project could be rewarding for Starcore with minimal exposure.
“Although there are no historical production records, based on the size of the old mine sites and average ore grades, we believe we have an excellent opportunity to capitalize on the untapped potential of the Tortilla Project and the attractive price of silver which has been steadily increasing for years,” Eadie says.
Last week (9 July), the company announced the changeover of rights, titles and interests in its Côte d’Ivoire projects to its wholly owned subsidiary, EU Gold Mining, to prioritise focus on its Mexican assets, as reported by Mining.com.au.
Starcore International Mines is a precious metals producer focused on developing its assets in Mexico, Côte d’Ivoire, and the US.
Write to Maddison Elliott at Mining.com.au
Images: Starcore International Mines
