• Tara Minerals subsidiary Adit Resources owns 100%.
• Assessing options for advancement.

In July 2009, Tara Minerals Corp. announced the formation of a 100% owned US subsidiary named Adit Resources Corp. Adit’s Mexican subsidiary has now completed the acquisition of a 100% interest in Picacho.

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 2,000 people serviced by the national electrical grid, a 1,200m 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 by driving a 5 meter by 5 meter ramp declining 8% extending over 1km in length. Production came 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 can be 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 aggregate strike length of the Picacho prospect is currently known to be 10.8 kilometers over four mineralized target areas – the Picacho Vein, Dos Amigos, Basaitegui, and No Name. The near term plan is to aggressively core drill the Picacho Vein where previous drilling results included true width intercepts of 11.3 meters of 15.6 gpt-gold and 9.4 meters of 7.8 gpt-gold. Simultaneously, detailed surface evaluation (mapping, geochemical sampling, trenching) of the other three areas will be conducted to identify targets for a reverse circulation drill campaign later in the year.

The property is being re-surveyed to an accuracy of one meter. This enables Adit to get all of the previous data into a three-dimensional database and greatly enhances geologic mapping. Initial results of current efforts are summarized below.


Picacho Vein Target Area

In order to test for potential near-surface open pit potential, surface channel sampling was completed in the central portion of the Picacho Vein above old mine workings. These results returned 15 meters averaging 1.46 gpt-gold and 6 meters averaging 0.92 gpt-gold. These encouraging results justify further advancement with more detailed channel sampling and future shallow drilling.

Geologic reconnaissance identified a new mineralized target consisting of veins, stockworks, and breccias along a 1.3 kilometer structure that is 200-250 meters south of and parallel to the Picacho Vein. The western, highest elevation portion of the zone displays textures indicative of the highest levels of a vein system as well as parallel mafic dikes correlative with the dikes seen in the productive portions of the Picacho Vein; a dump grab sample contained 1.25 gpt-gold. On the eastern portion (130 meter lower elevation) samples up to 1.8 meters grading 3.54 gpt-gold were obtained.

Preliminary work on the western end of the mined portion of the Picacho Vein indicates a northeast trending, 50-100 meter offset. Veinlets along this zone returned anomalous gold values.

Dos Amigos Target Area

Reconnaissance and topographic mapping reveals that the area between the previously mapped two parallel veins contains at least two more veins totaling at least 200 meters of strike length. Sampling of these well banded chalcedony veins is being initiated. There has been no known previous drilling in this area.

Basaitegui Target Area

Reconnaissance along the Basaitegui Vein has extended the strike length by at least 150 meters. A 1.2 meter channel sample returned 43.5 gpt-gold. Quartz replacing calcite is common in the area. There has been no known previous drilling in this area.

Sin Nombre (No Name) Target Area

Reconnaissance mapping and sampling reveals there are at least three parallel veins instead of just two veins as previously mapped. Thirty-eight samples collected average 2.86 gpt-gold with values up to 1.9 meters of 10.05 gpt-gold. Over 800 meters of additional vein strike length were identified. There has been no known previous drilling in this area.