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Tuesday, 31st October 2006 (3446 views)

Tara Gold has announced that it has reached an option agreement with Gold and Silver Minerals over interest on the La Millonaria property.

Interest of up to 55 per cent will be available to Gold and Silver Minerals once the company meets a series of stipulations, including payments of certain fees to Tara Gold and the issuing of a total of seven million shares.

The option agreement also rests on Gold and Silver Minerals providing property payments as well as spending a figure of at least $3 million (£1,571,713) in the next 30 months.

Francis Biscan Jr, president of Tara Gold Resources, stated: "We are excited to have a partner that recognises the potential at La Millonaria. The property will now begin to see the advancement it warrants to define the many areas of mineralisation that exist on the property."

La Millionaria property in Chihuahua, Mexico, covers an area of 875 hectares and encompasses mines that have previously produced gold.

The area is rich in gold and eight miles away is Glamis Gold's El Sauzal mine which produces 170,000 ounces of gold per year.

Tara Gold has indicated its priority is to acquire properties in the Chihuahua region for gold mining purposes, while Gold and Silver Minerals is focusing on increasing its assets by producing and exploring minerals.

 

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