Tarachi Will Acquire Concessions to Strengthen Gold Project

Tarachi Gold Corp announced it has agreed to acquire a group of four mining concessions covering an area of 1,148ha located in Sonora’s Sierra Madre gold belt.

The 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 concessions but the core recovery has been poor. Tarachi explained that the main structure is thought to continue to the south in untested, more favorable lithologies.

“Tarachi’s recently announced assay results on the La Dura historic mine confirm the importance of these four new concessions. Also, the announcement on Aug. 27 of the diamond drill mobilizing to La Dura and the four concessions’ geological similarities indicated their importance to Tarachi”, commented CEO Lorne Warner.

Tarachi informed that its projects presently consist of the San Javier, Pretoria, Chivitas, Jabali, Juliana, Texana and Tarachi concessions, totaling 3,708ha in Sonora’s Mulatos gold belt. The company’s concessions lie approximately 220km east of Hermosillo and 300km south of the US border. 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, Tarachi noted. According to the company, in a 2003 annual report, Alamos Gold identified the Jabali project as being part of the Los Bajios mineralized trend. The Tarachi project, however, is an early stage exploration project and the mineralization hosted on adjacent and nearby properties is not necessarily indicative of mineralization hosted on the company's property.

Tarachi explained that 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 Agnico Eagle’s La India property, the Pinos Altos mine and the Creston Mascota deposit 70km to the southeast.

The company described that mineralization in the region occurs within silicified rhyodacite and is associated with vuggy silica alteration and breccia with iron oxide. 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, Tarachi concluded.