Carnegie Mining and Exploration (CME) will invest $13m to earn an undivided 50% interest in various high grade gold, silver, zinc, lead and iron ore concessions.
A preliminary assessment report, completed by Hanlon Engineering & Architecture, verified numerous visible veins, assayed and confirmed the existence of high grade material, and estimated that the existing plant can be put back into production within a short time frame.
CME can earn an undivided 30% interest by incurring a minimum of $2m to start-up the existing Don Roman silver/zinc/lead mill and achieve a production rate of 120 tonnes per day within 120 days and incur another $6m to achieve a production rate of 360 tonnes per day within 12 months.
To increase its undivided interest to 50%, the company will incur an additional minimum $5m to achieve and maintain a minimum production rate not to be less than 600 tonnes per day, within 24 months.
In addition, CME has a 90-day option to incur a minimum of $1m to earn an undivided 50% interest in Tara’s current and future iron ore projects within Mexico.
All the projects will be operated by CME and net revenue will be shared equally.
