Endeavour Silver Corp announces it has acquired the right to explore and mine for precious metals above the elevation of 2,000 metres above sea level (masl) on the 181-hectare Toro del Cobre concessions owned by Capstone Mining. Capstone’s concessions are adjacent to the 75-hectare Calicanto concessions held by Endeavour in Zacatecas, Mexico. In return, Endeavour has granted Capstone the right to explore and mine for base metals below the elevation of 2,000 masl on the Endeavour’s Calicanto concessions.
The unique agreement is based on the observation that vein mineralization locally in the Zacatecas mining district is typically zoned vertically, with precious metal-rich vein mineralization historically found and mined above 2,000 masl, and base metal-rich vein mineralization historically found and mined below 2,000 masl. Both the Toro del Cobre and Endeavour concessions were historically mined for precious metals above 2,000 masl, but they lie adjacent to Capstone’s Cozamin mine, which is currently mining base metals below 2,000 masl.
The Calicanto, Nevada and El Misie veins on Endeavour’s Calicanto concessions all trend northwest onto the Toro del Cobre concessions. Endeavour is interested in tracing the precious metal mineralization from its own property onto Capstone’s property. In the same way, Capstone is interested in exploring the deeper portions of these and other veins for base metals on Endeavour’s property.
For the purpose of this agreement, precious metal mineralization is defined as having greater than 60% net smelter revenue (NSR) value in gold and silver, and base metal mineralization is defined as having greater than 60% NSR value in copper, lead and zinc. Capstone has granted Endeavour a 1% NSR on all Capstone base metal production on Endeavour property, and Endeavour has granted Capstone a 1% NSR on all Endeavour precious metal production on Capstone property.
Should Endeavour’s exploration efforts on the Toro del Cobre concessions indicate a continuation of precious metals mineralization below 2,000 masl elevation, Endeavour will be entitled to conduct exploration and mining of >60% precious metal ores below 2,000 masl. In the same way, should Capstone’s exploration on the Calicanto concessions indicate a continuation of base metals mineralization above 2,000 masl elevation, Capstone will be entitled to conduct exploration and mining of >60% base metal ores above 2,000 masl.
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