Kennecott Minerals has signed a letter of intent with a private company to develop a copper mine in the central Mexican state of Zacatecas.
According to terms of the deal, Kennecott, a subsidiary of Rio Tinto (RTP-N), would receive a 65% interest in the Tayahua mine from Minera Tayahua. The transaction is still subject to a due diligence.
Should Kennecott decide to seal the deal, the company would undertake a US$10-Million exploration program in order to identify additional mineralization required to support a mine expansion to 10,000 tonnes per day.
The mine currently produces copper, lead and zinc concentrates from two oreobodies at a mining rate of 2,000 tonnes per day.
Proven and probable reserves at the project, according to Minera Tayahua, stand at 40 million tonnes averaging 1.4% copper.
Be the first to comment on "Kennecott inks Mexican deal"