The Cumobabi Property is in the general vicinity of the Santa Elena mine and adjacent to the Ermitaño Property which was previously optioned by the Company.
SilverCrest can earn a 100% interest in Cumobabi by paying US$75,000 upon signing the Agreement and US$50,000 each anniversary thereafter, completing a minimum of US$500,000 in exploration expenditures by the second anniversary, and delivering a Production Notice within five years, specifying mine and construction plans with accompanying permits. Upon vesting, SilverCrest will no longer be required to make the annual payments and Evrim will retain a 1.5% Net Smelter Returns Royalty on the Cumobabi Property.
SilverCrest’s acquisition of the Cumobabi Property significantly consolidates SilverCrest’s land position in the vicinity of the Santa Elena Mine. The concessions host the same early Tertiary andesite and rhyolite volcanic rocks with major structures that host the Santa Elena silver and gold low sulphidation epithermal mineralization.
When combined with the recently acquired option on the Ermitaño Property, SilverCrest now controls over 300 square kilometres of mineral rights, prospective for gold and silver resources, adjacent to or in the near vicinity of the Santa Elena mine. The lands are considered to be highly prospective and are expected to play a strategic role in the organic growth of SilverCrest’s resources.
Initial exploration work is planned on the Cumobabi Property by the Company in 2015.
