Santacruz Silver (SCZ.V) announced earlier this month it has acquired the exclusive right (during a period of 15 years) to explore, develop and mine the Cinco Estrellas gold-silver property which is located just 40 kilometers away from the Rosario mine. Cinco Estrellas is a past producing property and is located on a 4 square kilometer land package.
Santacruz will make total cash payments of US$130,000 (of which US$50,000 has already been paid) and has given the property vendor a 2.5% Net Smelter Royalty, which means this is a cost-effective method for Santacruz Silver to secure more ore for the Rosario mill, which has been running below capacity for quite a while now. Increasing the throughput at Rosario will unlock additional economies of scale and we wouldn’t be surprised to see Santacruz trying to secure more of these deals.
Go to Santacruz’ website
The author has a long position in Santacruz Silver. Please read the disclaimer
