Prime Meridian Resources (TSXV: PMR) this morning revealed that it has signed a letter of intent to acquire a second copper-focused project based in Mexico, referred to as the La Sarita Copper Silver Project. The property is said to be host to historical underground copper and silver workings,m including the Puerta Verde 2 mine.
The letter of intent outlined the right for the company to acquire a 100% interest in the project, which is located in Sonora, Mexico. The property currently consists of 829.5 hectares, with mineralization said to be hosted within skarn and vein replacement zones. Mineralization is also said to include porphyry-style disseminated copper.
Historical small scale artisanal workings are said to be present on the property, which were mined intermittently since the 1800’s. The most developed historical workings on the property consist of the Puerta Verde 2 Mine, which consists of two tunnels driven into a hillside. The first tunnel is said to be 16 metres long, while the second is 40 metres long, both of which were entirely within mineralization.
The second tunnel also features a 23 metre deep shaft where copper oxide is present, and near the end of the tunnel there is a vertical winze measuring at least 33 metres deep, which has copper mineralization to an unknown depth. Sampling within the tunnel is said to have resulted in 6.83% copper and 310 g/t silver over 1.2 metres, while a separate sample returned 0.3% copper and 459 g/t silver over 1.2 metres.
Sampling conducted 400 metres to the north of Puerta Verde 2 meanwhile returning 3.59% copper and 53.8 g/t silver over 2.0 metres, as well a 0.5% to 2.0% copper and 20 to 40 g/t silver when it was conducted in 2008.
Prime Meridian has indicated it intends to fast-track development of the copper-silver skarn mineralization, white at the same time it will evaluative prospective surrounding ground for copper porphyry mineralization.
“La Sarita presents a low-cost entry into a significant value proposition with the combination of copper-silver skarn mineralization extending from surface alongside the exciting prospect of a new copper porphyry discovery in one of the most productive copper porphyry belts in the world,” commented CEO Brian Leeners.
The LOI currently outlines cash payments of $230,000 to be made over a period of five years, as well as exploration expenditures of $2.2 million, and the issuance of 3.25 million shares in exchange for the property. The vendor will retain a 1% NSR on the property, which Prime Meridian can acquire for a US$1.5 million payment. As part of the purchase, the company will also bring the concessions back into good standing.
Prime Meridian last traded at $0.055 on the TSX Venture.
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