CHICAGO, IL--(Marketwire - 09/14/10) - Tara Minerals Corp. (OTC.BB:TARM - News) (Berlin:6T3 - News), a subsidiary of Tara Gold Resources Corp. (Pinksheets:TRGD - News) (Frankfurt:T8N - News), is pleased to announce that it has entered into an agreement to acquire 100% of the El Tigre gold/silver tailings project. The 8,753 hectares El Tigre project is located in the northeastern part of Sonora, Mexico, in the Sierra Madre Mountains.
Initial analysis of historical data/reports, vendor declarations and pile samples indicates that the tailings are comprised of two zones -- a higher-grade zone of approximately 2 million tonnes and a lower-grade zone of approximately 1 million tonnes. Initial samples from the higher-grade zone averaged 4.53 grams per tonne gold and 95 grams per tonne silver (6.06 grams per tonne gold equivalent). Initial samples from the lower-grade zone averaged 0.28 grams per tonne gold and 63.65 grams per tonne silver (1.31 grams per tonne gold equivalent). Tara Minerals plans to grid drill the tailings to assess its potential for near term production.
The El Tigre agreement is comprised of three real estate land lots known as El Roble (2,592 hectares), Campo Bonito (4,661 hectares) and Las Iglesias (1,500 hectares). The purchase is conditional upon the vendor completing all necessary regulatory paperwork. Tara Minerals has agreed to cover the vendor's expenses related to obtaining the proper documentation, including any outstanding taxes owed. The total cost to Tara for acquiring the land lots, including vendor's expenses, is US $1 million. Tara Minerals is also negotiating for the purchase of historical data/reports with issuance of no more than 250,000 Tara Minerals common shares. The schedule of payments will be established upon the vendor meeting its closing obligations. Tara Minerals has the right to begin work on the property immediately.
The El Tigre Mine (one of numerous potential sources) was discovered in 1895. Mining started in 1900 and continued through 1938 at approximately 7,500 tonnes per month. Past production at El Tigre was from 1.5 ft. to 3.0 ft. steep veins that averaged 8.5 grams per tonne gold, 200 grams per tonne silver, and 3% combined zinc/lead/copper.
Mr. Francis Biscan Jr., President of Tara Minerals Corp., commented, "We are very excited to have secured the rights to the El Tigre tailings project. Our immediate focus will be on the assessment of the mineralization within the known tailings and a scoping study to determine economics. We believe El Tigre has the potential to add significant material value for shareholders through near-term production."
About Tara Minerals Corp. (OTC.BB:TARM - News) (Berlin:6T3 - News)
Tara Minerals Corp. is generating cash from the sale of Silver, Zinc, and Lead concentrate from its Don Roman mine and mill, located in Choix, Mexico. Management is focused on creating long-term shareholder value as this capital is deployed to increase throughput, enhance resources, further outline new discoveries/targets, and acquire additional strategic assets. Tara's strength in recognizing value early and strategy of reducing risk through a foundation of cash flow, positions it for low-risk value creation.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained herein which are not historical are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements, including, but not limited to, certain delays beyond the company's control with respect to market acceptance of new technologies or products, delays in testing and evaluation of products, and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission.