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Canada’s Minera Alamos (TSX-V: MAI) is expanding its footprint in Mexico by acquiring the Cerro de Oro gold project in Zacatecas, its third asset in the country.
As part of the private deal, the Toronto-based junior gains a 100% ownership of the new asset in exchange for share and cash payments scheduled over a four-year period, totalling 4 million MAI shares. Minera Alamos is also paying the vendor $2.9 million in cash.
The acquisition, which comprises two claims, boosts the company’s claim holdings in the Concepcion del Oro district to about 6,500 hectares. The two concessions are bounded by existing ones held by Minera Alamos. They are surrounded by a larger claim also owned by the company, which provides the land required to facilitate the deposit development.
“The Cerro de Oro gold project has many characteristics that mimic the El Castillo gold mine our team developed under the Castle Gold Corporation banner from 2007 until its eventual sale in 2010,” chief executive Darren Koningen said.
Analysts at Haywood Research believe Cerro de Oro has many positive features. Among them, near surface mineralization that is open in multiple directions, historical drilling that will support a maiden resource estimate, a low strip ratio and good metallurgical characteristics for an oxide heap leach project.
Cerro de Oro adds to Minera Alamos’ Santana and La Fortuna assets in Sonora and Durango, respectively.
Santana is under construction with mining targeted to commence in the first quarter of 2021. Initial production will be 25,000-30,000 ounces a year. La Fortuna is at the permitting stage with the company targeting mining before the end of 2021.
Some known large-scale mines located nearby include Newmont’s (TSX: NGT) (NYSE: NEM) Peñasquito, Aura’s (TSX: ORA) Aranzazu, Fisco’s Tayahua, Fresnillo’s (LON: FRES) Noche Buena and Orla’s (TSX: OLA) Camino Rojo.
