The acquisition comprises two claims containing a project with 76 holes and 8,200m of historical drilling and boosts its claim holdings in the Concepcion del Oro district to about 6,500 hectares. The two concessions are bounded by existing company concessions and is surrounded by a larger claim owned by the company providing the land required to facilitate development of the deposit.
"The Cerro de Oro gold project has many characteristics that mimic the El Castillo gold mine our team developed under the Castle Gold Corporation banner from 2007 until its eventual sale in 2010. Cerro de Oro contains a large disseminated gold system with a significant oxidation profile and a low implied strip ratio with the majority of mineralised areas outcropping at surface," said CEO Darren Koningen.
Gold mineralisation has been delineated over an area of about 500m-by-1,000m to oxidised depths in excess of 70-80m. The majority of the mineralisation is exposed at surface and readily accessible for potential open pit mining operations. Historical metallurgical work indicates its amenability to conventional heap-leaching methods.
Minera Alamos paid an initial US$400,000 and 2 million shares with $2.5 million and 2 million shares to be paid in increasing instalments over the next four years.
Cerro de Oro adds to its Santana and La Fortuna assets in Sonora and Durango. Santana is under construction with mining targeted to commence in the first quarter of 2021. Initial production will be 25,000-30,000 ounces a year. La Fortuna is at the permitting stage with the company targeting mining before the end of 2021.
The La Fortuna preliminary economic assessment outlined a 1,100 tonnes per day operation with a 3.68g/t grade and 90% recovery, with a $26 million initial capital and 11-month payback at a $1,250/oz gold price.
Minera Alamos aims to expand Santana in the second semester of 2021 while also permitting Cerro de Oro.
Shares in Minera Alamos opened up 8% Tuesday at C68c, valuing the company at $259 million.