Montreal-based Cambior (ME) will enter a joint venture with Aurizon Mines (VSE) concerning the latter’s La Reyna copper-gold property in Mexico’s Sinaloa state.
Situated 30 km east of the port city of Mazatlan, La Reyna comprises 193 sq. km and hosts a drill-indicated mineral inventory of 33 million tonnes averaging 0.48% copper and 1.3 grams gold per tonne at a cutoff grade of 0.25% copper.
Cambior can earn a half interest by spending US$15 million on exploration and development over five years; US$1 million must be spent during the first year. Upon completion of a bankable feasibility study, Aurizon will have the option of either maintaining its half interest by funding a proportionate share of the costs or allowing Cambior to fund all the costs, thereby increasing its interest to 70%.
Cambior hopes to increase the mineral inventory by verifying possible extensions of the deposit.
The joint-venture agreement has yet to be approved by regulators.
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