Magna Gold Corp. (MGR:TSX.V; MGLQF:OTCQB) entered an agreement to acquire from a private party 100% interest in the Los Muertos silver-gold project in Sonora, Mexico, it announced in a news release.
"Los Muertos exactly fits into our exploration pipeline profile," Magna Gold President and CEO Arturo Bonillas said in the release. "We understand the regional and local geology, and we are excited with the potential of Los Muertos given the project's easy access, demonstrated mineral showings and good geophysics."
Los Muertos encompasses two claims that cover 1,756 hectares, which are 30 kilometers to the southeast of and on trend with Argonaut Gold's La Colorada mine. The two projects share the same orientation of vein clusters and alteration profile, the company noted.
As for the current stage of Los Muertos, Magna stated that geochemical and induced polarization targets have been identified there through rock and soil sampling, and a drill plan was developed.
Magna Gold intends to confirm the targets and start reverse circulation drilling right away. The Toronto-headquartered miner will cover the costs of this work with revenue from its producing San Francisco mine, also in Sonora.
Los Muertos is in the Sonora-Mojave Megashear tectonic zone in the La Colorada Gold District. The district is "defined by hundreds of low sulphidation epithermal vein-type historic silver-gold deposits and showings which remain largely unexplored," the release noted.
The company reported that the terms of the option agreement state that Magna can earn a 100% undivided interest in the Los Muertos Project by "paying an aggregate amount of USD$425,000 plus VAT in five annual installments commencing on the effective date of the Agreement, August 3rd, 2020, and ending on the 48th month from the effective date." [NLINSERT]
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