Masivo Silver, a Canadian junior silver and gold mining exploration company, has finalised an arms-length agreement with Minera GoldZone and partners to acquire the Cerro Colorado gold, copper and silver project near Alamos, Sonora, Mexico.
The agreement outlines a series of payments and share issuances over four years.
Masivo Silver will initially issue 300,000 shares and commence discussions for an eight-hole drill programme.
A team led by senior Mexican geologist Jorge Rafael Gallardo is finalising the design for the programme, with drilling set to begin in May 2025.
Masivo will utilise a $75,000 (C$106,521) drill credit with a Mexican drilling company to covering initial costs and start the project.
Subsequent anniversaries will see payments ranging from $60,000 to $100,000, alongside the option of additional share issuances or cash payments.
Upon fulfilling all commitments, including a 48-month timeline, Masivo Silver will obtain full mining rights.
Minera GoldZone and partners will retain a 1.5% net smelter return (NSR), which Masivo can purchase outright for $1m.
Masivo Silver CEO David Coburn said: “With the option agreement signed and all necessary permits already in hand, we are fully prepared to move forward.
“The drill targets are being carefully defined, being prioritised, and we are mobilising immediately to begin drilling these high-grade silver zones. This is a significant milestone for the Cerro Colorado project, and we are excited to start unlocking its full potential.”
The Cerro Colorado project comprises two properties, the El Tacon Dos (Cerro Colorado) concession, spanning 774ha, and the Valle Del Cobre concession, covering 1,875ha.
The project is situated 11km north of the Piedras Verdes open-pit copper mine.
Historical data from the project indicates high-grade mineralisation, with samples from 1972 showing significant silver and gold values.
Recent sampling has also revealed strong anomalies and geochemical signatures consistent with polymetallic sulphide mineralisation.
