Sonoro Gold Achieves Key Surface Rights Milestone for Mining
Sonoro Gold Secures Essential Surface Rights
Sonoro Gold Corp. (TSXV: SGO | OTCQB: SMOFF | FRA: 23SP) has reached a significant milestone in its journey towards operationalizing the Cerro Caliche Gold Project in Sonora, Mexico. Through its wholly owned subsidiary, Minera Mar De Plata S.A. DE C.V. (MMP), Sonoro has successfully secured all necessary surface rights via a lease agreement. This agreement not only marks a historic accomplishment for the company but also forms a critical component towards launching the gold mine project.
Importance of Surface Rights at Cerro Caliche
In Mexico, mineral rights and surface rights are regulated separately, necessitating that concession holders obtain surface access directly from landholders. The newly secured surface rights for the Cerro Caliche project span the Rancho El Cerro Prieto property, encompassing 3,908 hectares. This area incorporates 15 adjoining mining concessions covering a total of 1,350 hectares, with plans to expand surface rights to 5,007 hectares by 2028.
Lease Agreement Highlights
- Exclusive rights for the exploration, development, and extraction of mineral deposits.
- Permission to establish related mining infrastructure.
- An initial lease term of 12.5 years, with the possibility of extending for another 12.5 years.
- Full control over both surface and mineral rights greatly reduces risks associated with ongoing project development.
In a recent statement, Kenneth MacLeod, the President and CEO of Sonoro, emphasized, "The agreement represents a pinnacle achievement in our strategy to advance Cerro Caliche into production, which will generate cash flow and support ongoing exploration. Our long-standing partnership with the owner of Cerro Prieto Ranch has been vital, and this lease solidifies our aim to shift from exploration to production."
Financial Overview of the Lease
The lease outlines specific financial commitments across the initial and potential renewal terms. For the first year, the company will pay US $3,125,000 along with issuing 5 million common shares. The following two years will see annual payments of US $6,250,000.
Renewal Term Details
If Sonoro opts to renew the lease after the initial terms, they will face further financial obligations starting with payments of US $3,125,000 in the 13th year.
- Subsequent years will demand payments of US $6,250,000 for the following two years.
With an initial payment of US $1,000,000 already executed, these financial arrangements underscore Sonoro's confidence in the project's prospects.
Progress on the Cerro Caliche Project
The Cerro Caliche project is entering the final stages of permitting for a proposed open-pit heap leach mining operation, following considerable drilling campaigns and rigorous technical studies. Currently, only 30% of the identified mineralized zones have been drilled and assayed. Sonoro plans to start with a mining operation processing 12,000 tonnes daily, which will contribute cash flow necessary for further exploration of the remaining 70% of mineralized areas.
Understanding the Project's Potential
The exploration efforts thus far at the 1,400-hectare site have revealed a rich mineralization environment characterized by a low-sulphidation epithermal vein structure. An updated Mineral Resource Estimate (MRE) was filed earlier this year, highlighting a total of 55,360 meters of drilled data, derived from multiple drill holes and trenches.
In October, the company presented a new Preliminary Economic Assessment (PEA) that illustrates the potential for a profitable 9-year operation at current market gold prices. With gold priced at US $1,800 per ounce, the project yields an NPV discounted at 5% of US $47.7 million and an IRR of 45%. A higher projection at US $2,000 yields an NPV of US $77 million and an impressive IRR of 63%.
Company and Project Overview
Sonoro Gold Corp. is dedicated to the exploration and development of natural resource deposits and holds both the Cerro Caliche development-stage project and the San Marcial exploration-stage project in Mexico's Sonora State. With a talented team experienced in natural resource development, the company is well-positioned to advance its projects towards successful fruition.
For the latest updates on Sonoro's projects and initiatives, stay connected through their social media platforms.
Frequently Asked Questions
What are the main components of the lease agreement for Cerro Caliche?
The lease grants exclusive surface rights and covers essential financial commitments for the exploration and development of the Cerro Caliche project.
How long is the lease term for the surface rights?
The lease has an initial term of 12.5 years with an option to renew for an additional 12.5 years.
What is the projected mining capacity at Cerro Caliche?
Sonoro plans to establish an operation with a capacity of processing 12,000 tonnes per day.
What does the latest PEA indicate about the project's viability?
The PEA demonstrates strong potential profitability with significant NPV and IRR under varying gold price scenarios.
How can investors and interested parties stay updated on Sonoro Gold Corp.?
Through their official website and various social media platforms for announcements and company news.
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