Tuesday, 26th September 2006 (2360 views)

Solitario Resources has announced that it has signed a venture agreement with Newmont regarding the Pachuca Real project.

The Pachuca Real site is located in central Mexico and stretches over 47,215 hectares. It is situated in the world-renowned Pachuca mining district, which is the largest such silver-gold area in the world.

The Pachuca district has so far produced seven million ounces of gold and 1.4 billion ounces of silver. The Pachuca Real site is currently 100 per cent owned by Solitario.

Under the terms of the venture agreement, Newmont can earn up to a 70 per cent interest by fulfilling a set financing obligations. Newmont must commit $2 million to exploration during the first year and drill a minimum of 7,000 metres.

By spending $12 million on the project, Newmont will earn 51 per cent equity and can gain an additional 14 per cent on top of this by completing a feasibility study.

Newmont can then take an additional three per cent of the entire project stake by funding Solitario's portion of the construction costs.

Solitario's president Chris Herald commented: "We are very excited about the potential of this land package in one of the most prolific silver-gold districts in the world.

"It is truly rare to establish such a dominant land position in a district such as this. Project exploration will be greatly accelerated through our venture agreement with Newmont."

 

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