Megastar interested in Gunpoint’s Cerro Minas project in Mexico

Cerro Minas is located approximately 130 kilometres southeast of Oaxaca City, pictured here. (Image by El Ágora, Wikimedia Commons)

Megastar Development (TSXV:MDV) entered into an option agreement with fellow Canadian miner Gunpoint Exploration (TSXV: GUN) to acquire a 100% interest in the Cerro Minas mineral concession located in the state of Oaxaca, Mexico.

The 899-hectare property lies within the Oaxaca epithermal Au-Ag belt, approximately 130 kilometres southeast of Oaxaca City, and 30 kilometres southeast of Gold Resource Corporation’s (NYSE American: GORO) Arista-Switchback polymetallic mine. 

Megastar reports that Cerro Minas contains polymetallic skarn-style mineralization (Ag-Au-Cu-Pb-Zn) that is the subject of historical reports by the Mexican Consejo de Recursos Minerales which document small-scale artisanal mining

According to Megastar, Cerro Minas is an inlier to its principal Yautepec project concession and covers 5 kilometres strike length of highly prospective ground along a northwest-trending caldera structural margin.

“Given the extremely exciting results we have announced to date from our Yautepec property, the addition of this land is very compelling for us,” David M. Jones, exploration manager and director of Megastar Development, said in a media statement.

“Completely surrounded by our current land holdings, Cerro Minas displays similar epithermal characteristics to targets that we have already identified and, given our early-staged success, adding this land is a natural as we look to enlarge our foot-print in, what we believe, is a very prospective area.”

Under the terms of the agreement, Megastar may earn a 100% interest in the property by paying Gunpoint $100,000 and issuing 800,000 common shares in a series of instalments.

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