Shares of Roca Mines (TSX: V.ROK, Stock Forum) moved 7.7% higher to 70 cents Monday, after the company announced that it has entered into an option agreement to acquire up to a 70% interest in Cream Minerals’ (TSX: V.CMA, Stock Forum) Nuevo Milenio project in Mexico.
To acquire a 50% interest in the property, Roca must spend US$1 million in the first year and a total of US$12 million in exploration work on the property by July 24, 2013. If the company meets these requirements within four years, Roca will vest at 50% and will have the option to earn a further 20% interest in the property by completing a positive feasibility study.
Roca says a revised National Instrument 43-101 Inferred Mineral Resource report filed last December estimated an Inferred Mineral Resource of 54.6 million ounces silver equivalent contained within 5.09 million tonnes at the project. The average grade was estimated at 1.6 g/t gold and 251 g/t silver, based on relatively limited drilling.
The company says it intends to follow-up and expand on CMA's work “by aggressively pursuing several clear opportunities at the Nuevo Milenio Project” including more accurately assessing the gold and silver grade of the four principal zones, and upgrading and expanding the resource from "inferred" through new drilling.
On the company’s Bullboard, cookster9 said: “Great pick up. 70% of this property for only 13 million over the next 4 years is awesome. Good job by managemen.”
And, louel noted: “Good property , Easy access, All menities nearby, Mining friendly, Politicaly stable, Low cost labor, and offering diversification from molybdenum only[sic].”
