- Kal Minerals (CSE:KAL) has signed an agreement to wholly acquire the Tarachi project in Eastern Sonora, Mexico
- Historic drilling at the site has encountered high grades of gold
- The projected is located in the established Sierra Madre Gold Belt
- Kal Minerals will pay a total consideration of C$5 million to Minerales de Tarachi de R.L. de C.V. for the acquisition
- Kal Minerals (KAL) is currently steady at $0.14 per share, with a market cap of $1.42 million
Kal Minerals (CSE:KAL) has signed an agreement to wholly acquire the Tarachi project in Eastern Sonora, Mexico.
Located 300 kilometres south of the US-Mexico border, the project consists of the San Javier, Pretoria, Chivitas, Jabali, Juliana, Texana and Tarachi concessions, situated on a total of 2,560 hectares within the Sierra Madre Gold Belt.
The Sierra Madre Gold Belt has collectively produced a total of 80 million ounces of gold and 4.5 billion ounces of silver.
The Jabali concession includes a previous gold-producing mine, as well as several other small-scale mines. The geology and gold mineralization at the site is understood to share similar characteristics with the Alamos Gold-operated Mulatos mine.
Historic drilling at the Tarachi project has indicated high grades of gold. 34.5 g/t was found over five metres, 24.3 g/t was found over 3 metres and 110 g/t was found over 1.32 metres.
Leighton Bocking, CEO of Kal Minerals, said that he is very excited about the acquisition and that exploration is due to commence soon.
“This is a transformative acquisition and the project has significant potential to deliver a large precious metals resource for shareholders.
“The high grades of gold we see at the project, coupled with the proximity to infrastructure from two producing mines in the immediate area, provide a clear pathway to exploration success for Kal,” he added.
As consideration for the acquisition, Kal Minerals will pay a total of C$5 million in cash to Minerales de Tarachi de R.L. de C.V.
The company will also pay a finders fee of 5 per cent to Rioro Mining Corp.
Kal Minerals said that the initial work at the Tarachi mine will be to identify immediate drill targets with the goal of delineating a NI-43 101 compliant resource in the future.
A geological team will visit the site as soon as possible to prepare a technical report, including work recommendations.
Kal Minerals (KAL) is currently steady at $0.14 per share, as of 3:55pm EST.