Tara Minerals Corp. is an exploration-stage company that currently has total ownership in more than 39 square miles in the Don Roman district, which is located in the northern part of the La Reforma Mining District of northeastern Sinaloa State, Mexico. The company's current focus is on prioritizing and delineating more than 70 Don Roman gold, silver, zinc, and lead mineralized structures for production this year.
Tara's management is focused on creating long-term shareholder value and deploying capital for the advancement of its projects. The company aims to achieve this by enhancing resources, further outlining new discoveries and targets, and acquiring additional strategic assets.
This month, Tara reported that it has begun working towards implementing the Don Roman Mine & Mill Production Plan. Geological work - including survey continuation, detailed mapping, sampling, and startup mine location work - is being conducted under the management of Chief Geologist Steve Eady. The company has also begun mill site upgrade work, including water well sourcing, process circuit optimization, maintenance and refurbishment of equipment, and installation of additional staff housing and offices. Senior Mining and Plant Engineer Tom Claridge will manage all mill site work.
Currently, Tara has the capacity to produce gold, silver, zinc, and lead at its Don Roman mill, which comprises three parallel circuits with 120 t/d capacity each. Engineering work is being done to expand capacity to 2,000+ t/d. Numerous mineralized veins have been identified in past results - some of which have averaged grades of 309 grams per tonne of silver, 9 percent zinc, and 3 percent lead. The company has cash on hand to fund an aggressive, district-wide work program to define these structures and advance them to production.
Southeast of the Don Roman mill about 1.5 kms, a significant gold and silver quartz vein has been discovered. Channel samples returned an average grade of 10.06 grams per tonne of gold and 149.85 grams per tonne of silver. This structure has a known strike length of around 850 meters as well as an exposed vertical height of around 400 meters. The vein remains open along strike and at depth.
To fund the pursuit of commercial production at Don Roman, as well as to aggressively expand production or acquire near-production projects, Tara has sold its Picacho Gold/Silver project to Yamana Gold for $35.6 million. Yamana made an initial payment of $7.5 million at closing, and a second payment of $9.8 million is due in May. Yamana will additionally pay an added $1 million for every 100,000 ounces defined by the 60-month anniversary, and the company will make a final installment payment of $4.3 million to Tara on the sixth-year anniversary. Payments for the measured, indicated, and inferred ounces that have been defined will cap off at $14 million. Yamana will make an advance payment of $3 million if no gold is defined on the property by the 36-month anniversary.
Tara is positioned for low-risk value creation through its early recognition of value and its strategy of reducing risk through a foundation of cash flow. The company continues actively pursuing future growth opportunities through the acquisition of additional exploration, development, and production assets. Due to its established office and relationships in Mexico, Tara is well positioned to acquire additional opportunities there.
For more information, visit TaraMinerals.com
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