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Zacatecas to raise cash for Esperanza acquisition

11th March 2022

By: Mariaan Webb

Creamer Media Contract Publishing Editor

     

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TSX-V-listed Zacatecas Silver is seeking to raise C$15-million through an offering of up to 13.6-million subscription receipts, priced at C$1.10 each.

The proceeds raised from the offering will be used to partially satisfy the $5-million cash consideration in connection with the acquisition of the Esperanza project, from Alamos Gold, and to begin advancing the Mexico asset towards production.

The proceeds will also go towards funding the ongoing drill programme at the company’s existing silver project, also in Mexico.

Zacatecas earlier this month struck a deal with Alamos to buy the Esperanza gold project, in Mexico, for a total consideration of $60-million.

The Esperanza project has a resource estimate of a measured and indicated resource of 34.35-million tonnes at 0.98 g/t gold and 8.09 g/t silver for 1.08-million ounces of gold and 8.94-million ounces of silver and an inferred resource of 718 000 t at 0.80 g/t gold and 15.04 g/t silver for 18 000 oz of gold and 347 000 oz of silver.  

To date, significant core and reverse circulation drilling has occurred at the Esperanza project, resulting in a total of 389 drill holes for 69 716 m.  

Based on previous preliminary assessments completed by previous owners, Zacatecas anticipates that the project will be amenable to a conventional openpit, heap leach operation with two-stage crushing. Crushed material will be conveyed to the leach pad and irrigated with dilute cyanide solution. Gold will be recovered from pregnant solutions utilizing carbon adsorption, subsequent electrowinning and on-site smelting to produce gold and silver doré bars. 

Zacatecas previously said it plans to carry out an extensive work programme to prepare an updated resource estimate, undertake economic studies on the project, and conduct an infill drill programme on the deposit as well as drilling on nearby exploration targets.

Edited by Creamer Media Reporter

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