Zacatecas Silver Acquires an Important Gold ProjectBy Fernando Mares | Tue, 04/19/2022 - 18:25
In a press release, Zacatecas Silver announced it has completed the acquisition of the advanced-stage Esperanza Gold Project, located in the state of Morelos, as well as the acquisition of its shares by another important mining company in the country.
The company acquired Esperanza Gold under the terms of a share purchase agreement from Feb. 28, 2022, signed with Minas de Oro Nacional, a subsidiary of Alamos Gold. The total amount of the transaction is approximately US$60 million, but the initial payment consists of US$5 million and 12,140,000 common shares of Zacatecas Silver with a total value of US$10 million, among other benefits for Alamos Gold. The rest of the payment will be made when significant steps in commercial production are achieved.
“With the transaction for Esperanza now closed, we also welcome Alamos Gold as the cornerstone shareholder of Zacatecas and thank them for their collaboration while executing this transaction. Zacatecas has two excellent projects, it is well funded and has an excellent team of technical professionals executing the company’s business plan. We look forward to working with all stakeholders as we move forward concurrently at Esperanza and Zacatecas,” said Bryan Slusarchuk, CEO, Zacatecas Silver,
According to the press release, Esperanza is a low-cost, low capital intensive and low technical risk growth project that has been carried out by Alamos Gold through advanced engineering, including metallurgical work. Zacatecas Silver anticipates that the project could be developed as a conventional open-pit, heap leach operation with a two-stage crushing process.
According to Alamos Gold's latest production report, Esperanza reported an estimate of over 34,352,000 tonnes produced at 0.98 g/t gold and 8.9 g/t silver, for over 1 million oz of gold and 8 million oz of silver, as well as inferred resources of 718,000 tones at 0.80 g/t gold and 15.04 g/t silver for an estimated of 18,000oz of gold and more than 300,000oz of silver.
“Our acquisition of the Esperanza Gold Project is a tremendous step in moving Zacatecas toward becoming a serious precious metals producer. The Esperanza Gold Project represents one of the best undeveloped open pit deposits in Mexico and will complement our higher-grade silver resource Zacatecas Properties, where the high-grade discovery at Panuco North has added a compelling new component to our ongoing exploration,” said Chris Wilson, COO, Zacatecas Silver.