- Jadar Resources (JDR) as entered an option agreement with Pacific Advisory to acquire the Tierra Blanca Project in Mexico
- Jadar will pay Pacific US$30,000 (roughly A$40,983) in cash upfront and issue three million shares
- Tierra Blanca is a polymetallic silver, zinc and lead project located in the prolific Santa Eulalia mining district
- Pleasingly, the project is also a drill-ready target that is close to infrastructure and several processing plants
- Jadar hopes to begin an initial drilling program early next year
- Company shares have dropped 9.68 per cent to trade for 2.8 cents
Jadar Resources (JDR) has entered an option agreement with Pacific Advisory to acquire the Tierra Blanca Project in Mexico.
The Tierra Blanca Project is a polymetallic silver, zinc and lead project located in the Santa Eulalia mining district near Chihuahua, Mexico.
This prolific district is a significant silver-producing region that hosts a number of high-quality mines. Historically, it produced 50 million tonnes of ore at 5 per cent lead, 6 to 7 per cent zinc, 0.1 per cent copper and 242 parts per million silver.
Tierra Blanca is believed to be a ‘Carbonate Replacement Deposit’ (CRD), which are meant to be common in the Santa Eulalia region.
Typically, CRD orebodies are polymetallic with metal contents ranging from one to 18 per cent zinc, one to 12 per cent lead, 60 to 600g/t silver, up to 2 per cent copper and 6g/t gold.
Notably, 40 per cent of the 10 billion ounces of silver produced in Mexico have been produced from CRDs.
“The acquisition of the Tierra Blanca Project marks another significant milestone for the company, as we seek to build a high-quality, and near-term development potential, asset portfolio within Latin America,” Executive Director Adrian Paul said.
Not only is Tierra Blanca a prospective silver, zinc and lead project but it is also a drill-ready target that is close to infrastructure and several processing plants.
Jadar will pay Pacific Advisory, the vendor and holder of the project, US$30,000 (roughly A$40,983) in cash upfront. It will also issue three million fully paid ordinary shares.
The option terms are spread over three years at an annual cost of US$24,000 (around A$32,789) which will be paid in monthly instalments. Once Jadar makes a decision to mine, it will need to pay US$25,000 (about A$34,155), as well as a royalty payment of US$2 (approximately A$2.73) per tonne of ore fed to the mill.
Jadar believes there’s high growth potential in Mexico and this acquisition presents a low-cost entry into a country with prolific outcropping precious and base metals orebodies and a mining history that spans more than 500 years.
To lead the Latin American business, Jadar has appointed Hugh Callaghan who will be based between Mexico and Peru.
Hugh brings extensive experience in the region, including working at a Chilean copper mine, project generation and building a 3000-tonne per day underground copper mine.
He has already assembled a team of contractors in Mexico and will build the Peruvian team when the current travel restrictions are lifted.
Early next year, Jadar plans to begin initial drilling once permits have been approved.
Company shares have dropped 9.68 per cent to trade for 2.8 cents at 1:04 pm AEDT.