New 8K out from FRMA and a new project revealed
"On February 27, 2016 Firma Holdings Corp. through its wholly owned subsidiary, American Metal Mining, S.A. de C.V., purchased and took control of the Magistral Del Oro tailings project, which is located in what is known as the "Golden Triangle" in Santa Maria Del Oro, Durango, Mexico. The terms of the transaction required Firma to pay a nominal price and assume accounts payable and environmental remediation obligations of approximately $1,440,000.
The acquisition includes a 500 TPD Dynamic Cyanide counter current system plant. The plant was completed in 2013, for approximately $4.5 million. It is unencumbered, production ready and fully permitted.
The Magistral project includes the exclusive rights to process approximately 1.2 million tonnes of mineralized mill tailings, grading an average of 2.06 gold per tonne (79,000 ounces of gold). Firma is required to pay a per-tonne royalty to the local government as material is processed. Based on an $1,100 spot gold price, the royalty is currently set at $3 per tonne. Going forward, the royalty adjusts by the percentage of change that the spot gold price increases or decreases. The fee is calculated monthly, using a previous thirty day average of the spot gold price.
A comprehensive report, including a metallurgical assessment of the mineralized tailings, was completed by Kappes Cassiday and Associates, an independent mining engineering firm, which confirmed recovery rates of approximately 82%. During Firma's pre-purchase due diligence, a volume and grade value report was commissioned and provided, which validated expected grade and tonnage. Additionally, to confirm previous metallurgical results, a report was commissioned and completed by two different Mexican based Metallurgical Engineering companies, with both company's reports confirming previous grade, process, and recovery results."
