HENDERSON, NV -- (Marketwire) -- 01/16/13 --
Tara Minerals Corp. (OTCBB: TARM) (BERLIN: 6T3) is pleased to provide a corporate update regarding its Gold, Silver, Zinc, and Lead properties located in Mexico.
Work completed in 2012 has identified an optimal mineralized Silver structure for initial mill feed. Work plans for 2013 have been outlined and work will begin to further delineate mill feed specifics, including a mine development plan, tonnage, grade, and metallurgy, in preparation for 2013 production. This work will also drive long-term exploration efforts within the district.
Tara currently has 100% ownership in over 39 square miles (25,770 acres) in the Don Roman district located in the northern part of the La Reforma Mining District of northeastern Sinaloa State, Mexico. The objectives include the prioritization and the delineation of an estimated 70+ Gold, Silver, Zinc, and Lead mineralized structures located within the Don Roman district.
Based on historical and current workings, surveys, sampling, and Tara's previous mining from the "El Sapo" Manto at Don Roman, Tara believes the district holds the potential for a substantial amount of tonnage at economically favorable grades. With Tara controlling a large portion of the district already, the opportunity exists for long term organic growth.
A strategically positioned, 100% owned production plant, which was built to scale up capacity as mines are developed, currently has a capacity of 360 tonnes per day. Planned engineering and metallurgical work should define what modifications or potential enhancements are necessary to ultimately achieve commercial production.
After an initial payment of $7.5 million, a second payment of $9.8 million is due from Yamana Gold in May 2013 from the sale of the Picacho Gold/Silver project. This is expected to be more than sufficient to achieve commercial production at Don Roman and aggressively expand production or acquire additional near-production projects.
Mr. Francis Biscan Jr., President of Tara Minerals, stated, "Our technical team has developed a work plan designed to lead to commercial production in 2013. Our primary focus will be on achieving Don Roman production and the acquisition of additional near-production projects."
Mineralization at the district falls into two categories. The first is the skarn type mineralization and the second type is moderately to steeply dipping Gold-bearing quartz veins in shear zones. Zinc skarns commonly occur in continental settings associated with subduction and extensional faulting, which is the case in Sinaloa. These skarns are generally high grade with Zinc/Lead grades of 10 to 20% and Silver in the 30 to 300 g/t range. It is very common to find substantial Silver/Zinc/Lead skarn deposits peripheral to porphyry Copper systems. The Don Roman district mineralization appears to fit these criteria in terms of metal grades, it is peripheral to a strong porhpyry system and is likely genetically related to the nearby Santo Tomas porphyry Copper.
In an effort to achieve 2013 commercial production at Don Roman, and minimize shareholder dilution, Tara completed the sale of its Picacho Gold/Silver project to Yamana Gold for $35.6 million. $7.5 million was forwarded by Yamana upon closing and a $9.8 million payment is due in May 2013. Yamana will also pay Tara an additional $1 million for every 100,000 ounces defined by the 60 month anniversary and a final installment payment of $4.3 million on the sixth year anniversary. The payments for the measured, indicated, and inferred ounces defined will be capped at $14 million. If no Gold is defined on the property by the 36 month anniversary, Yamana will make an advance payment of $3 million.
The current work is focused on achieving Don Roman production and will include delineation/drilling of the known structures. All work will be conducted in a NI 43-101 compliant manner.
About Tara Minerals Corp. (http://www.TaraMinerals.com)
Tara Minerals Corp. is focused on prioritizing and the delineation of an estimated 70+ Gold, Silver, Zinc, and Lead mineralized structures for 2013 production. Management is creating long-term shareholder value and deploying its capital to advance its projects by enhancing resources, further outlining new discoveries/targets, and acquiring additional strategic assets. Tara's strength in recognizing value early and strategy of reducing risk through a foundation of cash flow, positions it for low-risk value creation.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained herein which are not historical are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements, including, but not limited to, certain delays beyond the Company's control with respect to market acceptance of new technologies or products, delays in testing and evaluation of products, and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission. Please read the full disclaimer at www.TaraMinerals.com (http://taraminerals.com/English/General/Disclaimer/default.aspx).
Source: Tara Minerals Corp.