Tara Minerals Adds to Iron Ore Holdings
CHICAGO, IL -- (Marketwire) -- 10/10/11 -- Tara Minerals Corp. (OTCBB: TARM) (BERLIN: 6T3) is pleased to announce that it has reached an agreement for the right to mine the 150 hectare Champinon iron ore property located in Mexico. The host structure has been estimated, through surface mapping and sampling, to be at least 40 m wide, 1.5 km in length and open in all directions. Surface grab samples returned assays ranging from 62.0% to 68.9% iron ore. Tara has committed to extract and sell a minimum of 60,000 tons every 6 months.
The property is located 12 km from the Don Roman mill in the Municipality of Choix, State of Sinaloa, Mexico. The agreement gives Tara the right to mine Champinon for a period of 10 years and has an automatic renewal clause upon expiration. Tara will pay the concession holder a royalty of $5, plus any Value Added Tax, for each ton of material sold. The concession holder has been paid $175,000, plus Value Added Taxes, and will be advanced funds, against the minimum royalty, on a monthly basis. Tara anticipates that it can initially reach production rates of a minimum of 30,000 tonnes per month, scaling up to over 50,000. Local concession roads are being upgraded to handle the hauling traffic. Tara is also reviewing contractors to carry out the mining, processing, and hauling work. Discussions with concentrate buyers are confirming a strongly priced market for high-grade iron ore material over 62%.
Mr. Francis Biscan Jr., President of Tara Minerals Corp., commented, 'Iron ore continues to show a sustainable growth profile with potential for substantial operating margins. Champinon is a key addition to our portfolio because this high-grade ore can be mined, crushed, and direct shipped without the need for concentrating the ore. This acquisition is significant, as we continue to position ourselves in Mexico's iron ore market.'
About Tara Minerals Corp. (http://www.TaraMinerals.com)
Tara Minerals Corp. is focused on advancing its gold/silver/zinc/lead Don Roman mine and mill, its iron ore projects and its Picacho gold/silver project, all located in Mexico. Management is creating long-term shareholder value and deploying its capital to advance its projects by enhancing resources, further outlining new discoveries/targets, and acquiring additional strategic assets. Tara's strength in recognizing value early and strategy of reducing risk through a foundation of cash flow, positions it for low-risk value creation.
Contact:
David Barefoot
(888) 901-4550
Email Contact