"I am proud of the progress our team made during 2021, particularly at Magistral," commented
In February of 2021, the Company signed a purchase agreement with Manto Resources for the
- An auger drill program across the tailings basin completed in May to provide assay data for a resource estimate and bulk material for metallurgical testing.
- Metallurgical test work released in November that demonstrated >80% gold recoveries without the need for re-grinding the feed (See press release dated
November 2, 2021 ). Ausenco Engineering Canada Inc. ("Ausenco") completed a Preliminary Economic Assessment ("PEA") of Magistral in December, outlining a potentially high-margin, low-capex gold mining scenario (See detailed press release datedDecember 13, 2021 here). Highlights of the PEA include:- average annual production of 16,000oz Au + copper concentrate by-product
- all-in sustaining costs of
$705 /oz, net of silver and copper credits - after-tax IRR of 85%.
- An NI 43-101 resource estimate for the tailings was included in the PEA with 1.26Mt of material at a grade of 1.93g/t Au. Approximately 87% of the resource is in the Measured category.
- Electrical upgrades were made to the existing processing facility to prepare the site for connection to the local power grid in early 2022.
For the year ahead, the Company's priority for Magistral will be to secure funding for the asset's development while minimizing shareholder dilution. Tarachi's management is considering various funding structures for Magistral and discussions are currently underway with several potential providers of capital.
Next steps at Magistral will include additional metallurgical test work to aid in the design of the SART circuit to be added to the existing facility and amending the project's existing operating permits. The Company has also commenced its search for a General Manager for Magistral as well as a VP Operations who will be responsible for spearheading project development. Once funding has been secured, the Company aims to develop Magistral in a short timeline, with the recent PEA projecting a development period of 12 months.
In addition to the work at Magistral during 2021, Tarachi completed drill programs on both its
On the
- Hole JAB-21-009: 63.40m of 6.91g/t Au starting at the drill collar.
- Including 9.3m of 17.42g/t Au and 13.9m of 17.37g/t Au.
- Hole JAB-21-010: 42.00m of 1.70g/t Au starting at the drill collar.
- Including 3.4m of 8.0g/t Au
In addition to the underground drill program, the Company also completed a short RC surface drilling program with hole JAB-21-14 returning 12m of 7.26g/t Au starting only 9m from surface.
Core samples from
Results released in early 2021 from the surface diamond drilling at the
With only a fraction of the Company's total concession package having been explored by Tarachi's geological team to date, plans are underway to conduct field work in 2022 on some of the other concessions in
Corporate Development
For the past six months, Tarachi's management team has been conducting due diligence on a number of prospective gold and silver projects located both inside and outside of
Options
The Company has granted 1,500,000 options to directors, officers and consultants under the Company's stock option plan. The options have an exercise price of
About
The Company is also exploring on 3,708ha of highly prospective mineral concessions in the Sierra Madre gold belt of
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", "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: future exploration programs, development of mining assets, raising of development funding, acquisition of additional resources or assets, future production, future cash flows, the completion of drill holes, and receipt of assay results.
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 respective 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
[1] See full NI 43-101 Technical Report on Preliminary Economic Assessment dated
SOURCE
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