Tarachi Gold Corp. (CSE: TRG) is pleased to announce that it has entered into an arm’s length option agreement with Exploradora Cobre De Bacanoras S. DE R.L. DE C.V. whereby the Company has the right to acquire a 100% interest in the group of mining concessions known as the Juliana, Juliana No.1, Juliana No.2 and Las Moritas Mining Concessions. The 4 concessions cover a total surface area of 1,148.42 hectares (Table # 1) and are located in the Sierra Madre Gold Belt of Eastern Sonora, Mexico.
The Juliana, Juliana No.1, Juliana No.2 and La Morita concessions are known to host the same stratiform, silicified unit as Tarachi’s currently optioned Jabali concessions. Several drill programs have been completed on the Project however, the core recovery in the past was generally poor. Interpretation of the main structure is thought to continue to the south in untested, more favorable lithologies. The Juliana, Juliana No.1, Juliana No.2 and Las Moritas Mining Concessions are just north and on strike with the Jabali concession as seen on Figure # 1.
“The recently announced assay results on the La Dura, historic mine by Tarachi on August 20 confirm the importance of these new concessions. As well, the announcement on August 27 of the diamond drill mobilizing to La Dura and the Project’s geological similarities indicated the importance of these new concessions to Tarachi“, commented CEO Lorne Warner.
Tarachi’s projects now consist of the San Javier, Pretoria, Chivitas, Jabali, Juliana, Texana and Tarachi concessions for at total of 3,708 ha in the prolific Mulatos gold belt. The Project is approximately 220 kilometers by air east of the City of Hermosillo, and 300 km south of the border between the United States of America and Mexico. The Jabali claim covers the La Dura historic mine and several other small-scale mines. The gold mineralization and geology at Jabali is believed to be similar in character to the gold mineralization at the Mulatos mine. Alamos Gold Inc., in a 2003 annual report, identifies the Jabali project as being part of the “Los Bajios” mineralized trend. The Tarachi project is an early stage exploration project and the mineralization hosted on adjacent and/or nearby properties is not necessarily indicative of mineralization hosted on the Company’s property.
The Mulatos gold trend is part of the Sierra Madre gold and silver belt that also hosts the operating Mulatos gold mine immediately southeast of the La India property and the Pinos Altos mine and the Creston Mascota deposit 70 km to the southeast. Mineralization occurs within silicified rhyodacite and is associated with vuggy silica alteration, and breccia with iron oxide (hematite and specularite). Native gold occurs along late-stage fracture coatings in the breccias and is locally associated with barite. Past exploration has returned values from trace to 30g/t Au in grab samples. Native gold has also been identified in outcrop on the southern extension of the La Dura mine trend.
The Company has entered into an agreement whereby Tarachi has the sole and exclusive irrevocable right and option to acquire an undivided 100% right, title and interest in and to the Juliana, Juliana No.1, Juliana No.2 and La Moritas concessions free and clear of all encumbrances, such option to be exercisable by the Company by making cash payments of an aggregate of $2,000,000 US to the Optionor, to be paid as follows:
$40,000 on the Execution Date;
not less than $30,000 on the six-month anniversary of the Execution Date;
not less than $30,000 on the 12-month anniversary of the Execution Date;
not less than $30,000 on the 18-month anniversary of the Execution Date;
not less than $60,000 on the 24-month anniversary of the Execution Date;
not less than $60,000 on the 30-month anniversary of the Execution Date;
not less than $150,000 on the 36-month anniversary of the Execution Date;
not less than $150,000 on the 42-month anniversary of the Execution Date;
not less than $150,000 on the 48-month anniversary of the Execution Date;
not less than $700,000 on the 54-month anniversary of the Execution Date;
not less than $700,000 on the 60-month anniversary of the Execution Date.
In addition, issue a total of 4,000,000 common shares (subject to such resale restrictions and legends as may be imposed by applicable securities laws and the CSE), as follows:
500,000 Shares on the Effective Date;
1,000,000 Shares on the 12-month anniversary of the Execution Date;
1,000,000 Shares on the 24-month anniversary of the Execution Date;
1,500,000 Shares on the 26-month anniversary of the Execution Date.
The transfer of the Juliana, Juliana No.1, Juliana No.2 and La Moritas concessions is subject to a 3% NSR with respect to the production from the Concessions. The Company will have the right, at any time, to repurchase 1/3 of the 3% of the NSR (being a 1% NSR), for $1,000,000.
Table # 1
|Juliana No. 1
|Juliana No. 2
Stock option grant
The Company also announces that it has granted stock options to consultants of Tarachi, under the Company’s stock option plan. An aggregate amount of 80,000 stock options have been granted with an exercise price of 0.70 cents and will vest immediately. They are exercisable for a period of four years from the date of the grant and are subject to the policies of the CSE Exchange.
Lorne Warner, P. Geo, President, CEO and Director of the Company is a qualified person as defined by National Instrument 43-101 and has reviewed and approved the scientific and technical disclosure in this news release.
Talisker Resources Ltd. (TSX: TSK) (OTCQB: TSKFF) is pleased to a... READ MORE
GoGold Resources Inc. (TSX: GGD) (OTCQX: GLGDF) is pleased to an... READ MORE
HIGHLIGHTS New high-grade silver and lead vein system discovered ... READ MORE
Drill Highlights: 100% of all holes completed to date on the Sure... READ MORE
Titan Mining Corporation (TSX: TI) announces the results for the... READ MORE
We acknowledge the [financial] support of the Government of Canada.