- Tara Gold owns 30% Carried Interes.
- Assessing options for production start-up in 2008.
- Plan to expand existing mill and mine.
The Picacho Gold Mine is located within the Northern Sierra Madre Gold Belt, 120 kilometers south of the United States Border, in Sonora State, Republic of Mexico.
The Picacho mine, a 3,236 hectare mining concession, is 24km by haulage road from Bacoachi, a town with a population of approximately 2000 people serviced by the national electrical grid, a 1200m airstrip, a paved highway accessing the nearby mining town of Cananea and the State capital of Hermosillo.
The previous owners have been exploiting an up to 5 meter wide vein structure for the past three years by driving a 5 meter by 5 meter ramp declining 8% extending over 1km in length. Production comes from several working faces averaging 4 - 6 meters in width, dipping at 700, with very competent hanging wall conditions. The owner reported, and the company has verified, ore grades averaging 5 grams gold and 15 grams silver. The structure that hosts the mineralization is 85% silica creating a tailings product that is being sold as a flux agent to the local smelters for US$35.00/tonne an amount that is estimated to generate sufficient revenues to cover current mining and milling costs. Management believes the ore body width, dip, and hanging wall competency will offer very good flexibility by allowing for a variety of mining methodologies that can be employed to contribute enhanced efficiencies and minimize pillar volumes and dilution.
The mine includes an extensive processing facility currently capable of 250 tonnes/per day of ore throughput. The mill includes a 1,500 tonnes/day jaw crusher, a 500 tonnes/day cone crusher, 2 ball mills, 2 floatation cells (400 tonnes/day), 2 caterpillar gen-sets and a large shop facility. The rolling stock consists of 3 Wagner ST8 scoop trams, a Gardner Denver 2 boom pneumatic jumbo, a stationary hydraulic exploration drill, 2 compressors, 2 Cat D8 and D9 dozers, a Clarke Michigan front end loader, 1 track loader, haul trucks and ancillary mining equipment. The equipment is in good serviceable condition and operations can continue while a scoping study is performed to recommend various optimization scenarios for plant and equipment upgrading.
Tara Gold is assessing produciton options to refurbish the existing mill, crushing circuit and rolling stock. The site office in neighboring Bacoachi has undergone a complete renovation with plans advancing for an upgrade to the mill facility's office, laboratory and shop complex.
The initial focus of the exploration program will be resource delineation. The incorporation of pre-existing mine plans including blocked out mill feed is being systematically verified for incorporation with the data compilation. Initial interpretation suggests that there are a number of parallel structures that host the mineralization and that the mineralization extends over a strike length of 1,500 meters.
On Dec. 20, 2007, Tara announced a binding commitment to purchase a 70% undivided interest in Tara Gold's Picacho Project by La Camera Mining Inc. Tara Gold will retain a 30% carried interest in all properties once Camera earns its 70%.
For Picacho, La Camera will spend $6 mil over the next 3.5 years, make the underlying property payments, and issue 1,500,000 shares of La Camera to Tara. The partners are excited about better defining existing structures and exploring the numerous targets that have been identified. La Camera will also provide the capital and operating funds necessary to put Picacho back into full-scale production in 2008.
Picacho Mine – Retain 30% Carried Interes
- Processing facility currently capable of producing 250 tonnes/day.
- Ore grades averaging 5 g/t gold and 15 g/t silver over a 1 km, 6 m wide vein.
- Assessing production options for 2008.