Quaterra Resources Inc., the up-and-coming mineral exploration company focused on developing prospects in North America, today revealed that its Sierra Sabino property was selected under the terms of the recently signed investment framework agreement as an advanced project by Goldcorp Inc.
Goldcorp stands to gain 65% interest in the property, which is located in the lucrative Mexican Silver Belt just 120 km south of their Penasquito mine, in San Luis Potosi, via a $2M outlay over 2 years, of which half must be spent in the first year on QMM-conducted exploration, geologic mapping, some 1,500 meters of core samples and an induced polarization survey as part of initial feasibility work.
Goldcorp will be responsible for funding the operation after this first phase, until determinations are reached regarding production, when QMM will be tasked with 35% of expenses and continue to operate the site until such time as Goldcorp determines to take over that function.
The Sierra Sabino is a perfect example of QMM’s strategy to acquire prospects in mining-friendly jurisdictions through its network of industry sources, consultants and professionals and this site has the potential to produce substantial quantities of base and precious metals.
The investment framework agreement covers some 12 different properties, totaling over 950 sq. miles and any advanced exploration expenditures by Goldcorp at the Sierra Sabino property will augment the $10M already invested for exploration in central Mexico earlier this year in the form of two private placements in QMM.
President and CEO of QMM Thomas Patton was pleased by the advanced exploration move by Goldcorp, and remarked that it showed their dedication to the recent agreement between the two companies to push precious metal exploration in central Mexico.
Patton pointed out that the Sierra Sabino selection would “free-up additional funds for generative work on the Penasquito trend”.