Acquisition:
2023 / 04 / 12
Agreement:
Royalty
Terms:
2.5% NSR until US$4M paid back; then
0.2% NSR thereafter
The Cosalá property consists of the San Rafael mine, the Los Braceros processing plant and tailings storage facility, the EC120 project, and the past producing Nuestra Señora mine. It is located in Sinaloa, Mexico, near the town of Cosalá, which is located approximately 240 km from the city of Mazatlán.
While Cosalá has historically produced copper, lead, and zinc from the Nuestra Señora mine, current production is from the San Rafael mine, which is the sole source of mill feed for the Los Bracero mill. A targeted exploration program has been implemented to explore the highly prospective land position and extend the mine life at San Rafael.
As of June 30, 2022, on an attributable basis estimated contained metal in the Proven and Probable Mineral Reserve category at Cosalá totalled 22.2 Moz of silver, 107.0 Mlbs of zinc, 38.9 Mlbs of lead, and 27.2 Mlbs of copper. This is based on the weighted average tonnage and grade from the combined San Rafael Mine, El Cajon, and Zone 120 which contained 4.5 Mt at 152.9 g/t silver, 1.08 % zinc, 0.39% lead, and 0.27% copper. Estimated contained metal in the Measured and Indicated Mineral Resource category totalled 21.8 Moz of silver, 254.9 Mlbs of zinc, 115.5 Mlbs of lead, and 21.1 Mlbs of copper, exclusive of Mineral Reserves (based on variable cut-off grades). The weighted average tonnage and grade for the Measured and Indicated Resources contain 7.7 Mt at 88 g/t silver, 1.5% zinc, 0.68% lead, and 0.12% copper.
