Canadian explorer Monarca Minerals (TSXV: MMN) signed a Letter of Intent with a group of landowners to acquire 100% ownership of the so-called San José Property, located in northern Chihuahua, Mexico.
The terms of the LOI call for a $20,000 on execution of the LOI (paid), $20,000 on execution of a definitive agreement, $50,000 on the first anniversary of the definitive agreement and $60,000 on the second anniversary of the definitive agreement.
San José is a 5,580-hectare property that shows multi-element mineralization associated with skarn, gossan and altered intrusive rocks. According to Monarca, a 2011 geological report discloses assays of up to 26.84ppm Au, 161 g/tonne (5 opt) Ag, 6.5% Pb, 0.9% Zn, and 4.2% Cu.
About 10% of the concession was conventionally mapped and results indicate a strong area of continuous mineralization of about 1km by several hundred meters. “The mineralization at San Jose is very similar to the Bismark Mine, located about 50km to the southeast, which has been in production since 1992,” the Toronto-based miner reported in a press release where it also highlighted that the neighbour started production at 600,000 tons/year.
Monarca says that Bismark had a starting resource of 8,200,000 tonnes at 8% Zn, 0.5 % Pb, 0.2 % Cu and 50 g/t Ag. Like San José, the deposit is a stock-contact skarn, with massive sulfide zones within altered limestone and adjacent to a mineralized intrusive.
“After reviewing several investment opportunities, we decided to move forward and sign a LOI for San José, an excellent opportunity to diversify our property portfolio,” the company’s president, Carlos Espinosa, said in the media statement.