Business
Starcore Embarks on Environmental Rehabilitation Project in Mexico
Vancouver, British Columbia--(Newsfile Corp. - May 13, 2024) - Starcore International Mines Ltd....
About this update from Starcore International Mines Ltd.
[{"type":"text","content":"Starcore Embarks on Environmental Rehabilitation Project in MexicoVancouver, British Columbia--(Newsfile Corp. - May 13, 2024) - Starcore International Mines Ltd. (TSX: SAM) (\"Starcore\" or the \"Company\") reports that it has joined forces with Kappes, Cassiday & Associates (\"KCA\") to launch an environmental rehabilitation project to clean up mine tailings from the municipality of El Oro in Mexico (the \"El Oro Tailings\"). The parties have executed a Memorandum of Understanding (\"MOU\") to enter into a joint venture whereby KCA would provide its expertise and services for the project aimed at rehabilitating the environment, and Starcore would act as Operator of the joint venture.KCA, an engineering firm headquartered in Reno, Nevada, specializes in all aspects of heap leaching and cyanide processing. Recently, KCA entered into an agreement with Xali Gold Corp. (TSXV: XGC) to purchase its tailings at El Oro, Mexico, which tailings KCA now intends to process in a joint venture with Starcore to rehabilitate the environment and recapture the tailings' gold and silver content. As announced in its press release of April 15, 2024, Xali Gold reported that the El Oro Tailings contain an Inferred Resource* of 1,267,400 tonnes grading 2.94 grams per tonne (\"g/t\") gold, 75.12 g/t silver, containing a total of 119,900 ounces of gold and 3,061,200 ounces of silver. * All figures rounded.KCA will be responsible for all metallurgical studies, the project's feasibility study, and will deliver the engineering design for the construction of the processing plant that will launch the environmental rehabilitation project and recover precious metal from the El Oro Tailings. Starcore will be responsible for the capital cost to construct the plant, and will act as operator of the plant. Net profits generated from the JV will be allocated (i) 100% to Starcore until it has recouped its capital costs, and (ii) thereafter on a 70/30 (Starcore/KCA) basis. It is intended that the MOU will be replaced with a formal JV agreement, subject to: (i) KCA having earned a 100% interest in Xali Gold's El Oro Tailings Project by making the agreed-upon payments to Xali Gold, subject to royalty payments (see Xali Gold's news release of Apil 15, 2024), (ii) satisfactory drilling and testing of the El Oro Tailings, and (iii) satisfactory arrangements being negot...