CSE: TRG
"The signing of these 30-year agreements with the local community and its council members marks a significant milestone in the advancement of our Magistral project and demonstrates our long-term ambitions for this region," commented
Agreements
On
Land Lease Agreement
The Land Lease Agreement is for a 30-year term, granting Tarachi and its Mexican subsidiary's use of 63.9 hectares of land for mining, processing, and tailings disposal purposes (Figure 1). The Company will pay annual fees to the
Water Rights Agreement
A 30-year agreement for the supply of water and lease of water related infrastructure within the 643-hectare territory of the Ejido Magistral was also signed. The Company will pay to the
Tailings Material Agreement
The Company and the
- Example: at
$1600 /oz Au under previous terms, the per-tonne fee paid to theEjido for their tailings would equal to$6.50 /tonne. Under the new terms, the per tonne fee would total$6.75 /tonne.
In addition, the Company has agreed to increase the monthly advanced tailings purchases, currently being purchased at a rate of 2,500 tonnes per month, according to the following schedule:
- Increasing to 4,000 tonnes per month for the month of
February 2022 ; - Increasing to 5,000 tonnes per month for the month of
June 2022 ; and, - Increasing to 7,500 tonnes per month for the month of
September 2022 .
Magistral Project Update
Following the completion of Magistral's PEA outlining a potential project scenario with potentially attractive economics (see press release dated
Final Metallurgy and Engineering
Sample material composites from the Company's 2021 tailings drilling program are being prepared for shipment to SGS's laboratory in
Additional test work is being conducted for cyanide destruction and thickening at
The test work is estimated to take ten weeks to complete with a final report expected in early
Permitting and Environment
Environmental, social, and hydrogeological baseline studies were completed in 2021 and early 2022 with final report writing and translation to English currently underway. The results of these studies will support Tarachi's applications to update and amend the existing operating permits for the Magistral mill and tailings storage facility later this year.
Development Schedule and Contracting
Tarachi has signed a proposal by Ausenco to provide Engineering, Procurement, and Construction Management services for certain components of Magistral's development over the next 12 months. The Ausenco EPCM services will cover the SART circuit and associated equipment, integration of the SART circuit into the existing processing facility as well as the refurbishment of the existing processing facility in preparation for feeding tailings material. The EPCM services will cover up to dry and wet commissioning of the processing facility. Tarachi and Ausenco plan to formalize a contract for the EPCM services in the coming weeks.
The Company's existing team and contractors in
The current 12-month development schedule is planned as follows:
Milestone | Expected Timeframe |
Completion of Metallurgical Testwork and Detailed Engineering | Q3 2022 |
Completion of TSF Modifications | Q4 2022 |
Delivery of Procured Equipment to site and Team Mobilization | Q4 2022 |
Completion of | Q1 2023 |
Completion of Dry and Wet Commissioning of the Processing Facility | Q2 2023 |
First Feed to Mill | Q2 2023 |
The current schedule is expected to be updated when final metallurgy results are received, along with an update to the expected capital cost estimate and operating cost estimate from those that were provided in the Preliminary Economic Assessment. Any delay in the metallurgical testwork will cause a subsequent delay in downstream development activities.
About
The Company is also exploring on their highly prospective mineral concessions in the Sierra Madre gold belt of
About Ausenco
Ausenco is a global company redefining what's possible. Its team is based across 26 offices in 14 countries, with projects in over 80 locations worldwide. Combining their deep technical expertise with a 30-year track record, Ausenco provides innovative, value-add consulting and engineering studies and project delivery, asset operations and maintenance solutions to the mining & metals, oil & gas and industrial sectors.
Qualified Person
SPECIAL NOTE REGARDING FORWARD LOOKING STATEMENTS
This news release includes certain "Forward–Looking Statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward–looking information" under applicable Canadian securities laws. When used in this news release, the words "anticipate", "believe", "estimate", "expect", "hope", "target", "plan", "forecast", "may", "would", "could", "schedule" and similar words or expressions, identify forward–looking statements or information. These forward–looking statements or information relate to, among other things: the exploration and development of the Magistral project, production goals, final metallurgy and engineering work, additional test work, updating and amending existing operating permits, entering into an EPCM contract with Ausenco, improvements to infrastructure and related schedules.
Forward–looking statements and forward–looking information relating to any future mineral production, liquidity, timing of completion of reports and studies, enhanced value and capital markets profile of Tarachi, future growth potential for Tarachi and its business, and future exploration plans are based on management's reasonable assumptions, estimates, expectations, analyses and opinions, which are based on management's experience and perception of trends, current conditions and expected developments, and other factors that management believes are relevant and reasonable in the circumstances, but which may prove to be incorrect. Assumptions have been made regarding, among other things, the price of silver, gold and other metals; no escalation in the severity of the COVID-19 pandemic; costs of exploration and development; the estimated costs of development of exploration projects; Tarachi's ability to operate in a safe and effective manner and its ability to obtain financing on reasonable terms.
These statements reflect Tarachi's current views with respect to future events and are necessarily based upon a number of other assumptions and estimates that, while considered reasonable by management, are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors, both known and unknown, could cause actual results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward–looking statements or forward-looking information and Tarachi has made assumptions and estimates based on or related to many of these factors. Such factors include, without limitation: the Company's dependence on one mineral project; precious metals price volatility; risks associated with the conduct of the Company's mining activities in
SOURCE
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