Santacruz Silver Mining Ltd. said May 29 that its Impulsora Minera Santacruz SA de CV unit secured a five-year exclusive right to explore, develop and mine the Membrillo silver-zinc-lead-gold vein structure in Mexico from Grupo México SAB de CV.
The Membrillo vein is about four kilometers from the company's Rosario silver operation, while the mining right covers about 500 hectares within the San Rafael concession. The company's exploration and exploitation rights now total about 958 hectares of the 2,912 hectares comprising the concession.
In exchange for the mining right, Santacruz Silver will pay Grupo Mexico a US$60,000 annual fee and grant it a 3.0% net smelter returns royalty on any mineralized material from the vein.
Once full mining is achieved at Membrillo, the combined output from the vein and the Cinco Estrellas property will range from 450 tonnes per day to 500 tpd, with an additional 100 to 150 tpd of mineralized material being delivered to the Rosario mill facility.