Arian Silver Corporation PLC (LON:AGQ, CVE:AGQ) has paid US$25,000 for the exclusive right to evaluate Tierra Nueva Mining's (TNM) Noche Buena gold and silver tailings project.
Back in February, Arian announced it had signed a memorandum of understanding with TNM to evaluate the private company's portfolio of mineral properties located in northern Mexico's Zacatecas state.
Negotiations have now moved on to the next stage with Arian stumping up to be given the exclusive right to evaluate the tailings project for a further 120 days, to enable more metallurgical test work to be undertaken to define the process required to produce a saleable gold and silver concentrate.
“This is a significant step towards acquiring a low-cost production asset in which we see significant potential for gold and silver to be extracted in the near-term through a simple and inexpensive process, as compared with traditional hard rock mining ventures,” said Jim Williams, Arian's chief executive officer.
“With the successful closing of the £700,000 placing last week, we are ideally placed to complete the necessary studies to determine a cost effective, saleable gold and silver product from the tailings project,” he added.
The company also continues to run the rule over other mineral properties in Mexico, including some owned by TNM.
“These exciting developments come at a time when the precious metal markets are exhibiting positive signs of recovery and the indications suggest this is not a short-term affair