Business
Mexico high-grade mine joint venture agreement
Mexico high-grade mine joint venture agreement.
About this update from Zephyr Energy Plc
[{"type":"text","content":"\n \nRNS Number : 0139R Rose Petroleum PLC 08 September 2014 \n \n\nRose Petroleum plc (AIM: ROSE)\n(\"Rose\" or the \"Company\")\nMexico high-grade mine joint venture agreement\n \nRose Petroleum (AIM: Rose\"), the AIM-listed natural resources company, is pleased to announce that its wholly-owned subsidiary Minerales VANE S.A. de C.V. (\"MV\") has entered into a joint venture agreement (the \"JV\" or \"Agreement\") with Minera Pafex S.A. de C.V. (\"Pafex\") in connection with Pafex's concessions located near the town of Los Mochis in western Sinaloa, Mexico. The Charay, Charay 2 and San Luis concessions host the high-grade Mina Charay gold and silver mine where MV drilled 27 holes during 2004 and 2005 under an earlier option agreement with Pafex (as described in the Company's announcements of 31 August 2004, 18 February 2005 and 18 July 2005). \nHighlights:\n· 21 drill intervals on high-grade gold/silver veins including 66.2 g/T Au over 0.6m true width (Hole 21 Vein#2) and 42.3 g/T Au over 2.0m true width (Hole 18 Vein#1)\n· Total resource of 29,000 oz gold and 173,000 oz silver contained in 90,000 tonnes based on in-house re-evaluation at current metals prices\n· In-house estimate mineable (including dilution) grade of 10g/T Au and 60g/T Ag\n· 60:40 (MV:Pafex) profit split on production\n· Projected minimum 3-year mine production life\nMV and Pafex have now entered into a JV whereby MV will be responsible for developing and mining the Mina Charay deposit and split profits 60:40 (MV:Pafex) after all operating costs are deducted. Under the terms of the JV, whilst operating costs will ultimately be deducted prior to the payment of any profits generated by the mine, MV has assumed full liability for these until such time as the cash flow from the mine covers these. MV has already commenced activities including mine design with consultant mining engineers Physical Resource Engineering, Inc. (\"PRE\") and surface work in preparation for development and mining as well as renewal of the blasting permit. Actual development and mining will commence once the blasting permit is received which is anticipated to be in the next 30-60 days. As the property has historically had a ...