Starcore International Mines (TSX:SAM) has finalised a 10-year lease on the Tortilla Project, which includes a historical past-producing silver mine in Queretaro, Mexico.
As previously reported, Starcore entered into a non-binding letter of intent to lease the Tortilla Project from Manuel Felipe Arreguin Martinez, through its wholly owned subsidiary Compañia Minera Peña de Bernal.
Under a definitive agreement, the company paid US$268,500 ($412,532), with US$107,500 already paid. After all lease payments have been made, the lessor will be entitled to a 2% net smelter return royalty from mineral production derived from the Tortilla Project.
During the term of the lease and for two years thereafter, the lessor has the option to sell all of the claims and concessions to Starcore at a purchase of US$5 million.
Ongoing work on the Tortilla Project has provided valuable information about the continuity and potential of the mineralised structure of the historical mine.
Starcore has identified two main mineralised zones, the oxide and sulphide zones. The oxide zone averages a silver grade of 424 grams per tonne, while the sulphide zone averages 973g/t silver.
CEO Robert Eadie says if the technical and metallurgical analyses are confirmed, the company believes this investment will “deliver significant returns”.
“We are really excited about the potential and economic value of the Tortilla Project,” Eadie says.
The Tortilla Project encompasses six mineral claims and concessions, in Queretaro, Mexico.
Starcore International Mines is a precious metals producer and explorer with a portfolio of assets spanning Canada, Mexico, and West Africa.
Write to Aaliyah Rogan at Mining.com.au
Images: Starcore International Mines
