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Tuesday, 25th July 2006 (3245 views)

Tara Gold Resources has signed an agreement to acquire a 100 per cent interest in the Picacho Gold Mine and production plant in the Northern Sierra Madre Occidental Gold Belt in the Republic of Mexico.

The Picacho mine, which lies 24 kilometres by haulage road from the town of Bacoachi, is comprised of 3,236 hectares of mining concession encompassing several areas of hydrothermal alteration.

It includes an extensive processing facility that can operate at a rate of 250 tonnes per day. Its current owners have occasionally mined the site.

Under the terms of the option agreement, Tara has the right to acquire a 100 per cent interest in the property and plant by paying the vendors a total of $7 million over five years.

The company plans to add operating efficiencies to the mine, expand its daily throughput and increase the number of days it operates per month.

Francis Biscan Junior, president of Tara Gold Resources, said: "Our strategy is to acquire high-quality gold, silver, and mineral projects with near-term production potential which also offer clear potential to expand the mine-able resource. Tara Gold is now poised to benefit from production cash flow from three of our projects."

 

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