Mercado Minerals (CSE: MERC) has signed a letter of intent to acquire the La Franca concession. The deal would add the missing segment of a key vein to its Zamora silver-gold project in Sinaloa, Mexico.
La Franca sits next to the company’s Campanillas concession. Together, the two would give Mercado 750 metres of continuous vein strike with high-grade silver and gold at surface. None of it has been drill tested.
Once a definitive agreement is signed, Mercado can earn 100% of La Franca over 3 years by making US$600,000 in option payments. The schedule is US$100,000 on signing, 3 payments of US$33,333.33 at 4, 8 and 12 months, and US$200,000 on each of the second and third anniversaries.
The concession carries a 2% net smelter return royalty. Mercado can buy it back in full for US$500,000.
Chip sampling on the La Franca segment of the vein this year returned:
- 1,530 g/t silver and 1.39 g/t gold over 1.00 metre
- 534 g/t silver and 3.58 g/t gold over 0.80 metres
- 229 g/t silver and 1.12 g/t gold over 3.00 metres (true width)
Older work backs up those numbers, including a grab sample from stope wallrock that assayed 1,720 g/t silver and 12.96 g/t gold.
“The 2026 results at La Franca, together with the historical data, confirm why we want to acquire the concession,” said CEO Daniel Rodriguez.
“Our team’s field mapping and sampling have built the confidence to move forward with permitting and advancing Mercado’s inaugural diamond drill program to test this vein system and unlock its full potential,” he added.
Related: Mercado Minerals Hits 828 g/t Silver Over 1.00 Metre at Campanillas Vein
Mercado plans to start drill permitting on the Campanillas-La Franca system as soon as it secures the property. Part of the groundwork is already done. In August, the company signed a 1-year renewable access and exploration agreement with the local ejido that covers the Campanillas area and supports drill permitting.
Earlier this month, Mercado reported surface results from Campanillas that peaked at 828 g/t silver over 1.00 metre. Zamora covers more than 3,000 hectares and hosts 14 known vein occurrences with over 8 kilometres of combined strike length.
Mercado Minerals last traded at $0.13 on the CSE.
