Mines Management To Acquire Stake in Peruvian Gold-Silver Project
Mines Management, Inc. has signed a letter of intent to acquire up to a 75% stake in the La Estrella gold and silver project in central Peru. The project is located in a historically significant mining region.
Spokane, Washington – Mines Management, Inc. has entered into a preliminary agreement to acquire a significant interest in a gold and silver exploration property in Peru. The company announced on January 11, 2012, that it signed a letter of intent (LOI) to earn up to 75% of the La Estrella project.
The La Estrella property, covering approximately 2,500 hectares, is situated in a region of central Peru known for its polymetallic deposits and a long history of silver mining dating back to the 16th century. The project benefits from existing infrastructure, including road access and electricity, and is located near the historic Julcani Silver Mine, which commenced operations in 1955.
Under the terms of the LOI, Mines Management, through its subsidiary Minera Montanore Peru, SAC, can earn its stake by committing $5 million over four years to exploration activities. This includes initial option payments and significant work commitments, such as drilling, in the first two years. The company also plans to complete a preliminary economic assessment on a defined resource.
Exploration to date at La Estrella has identified an epithermal, volcanic-hosted gold-silver system. Previous drilling has encountered mineralization in most drill holes, indicating the potential for further discoveries within the identified zone, which remains open for expansion.