Vancouver, British Columbia (January 26, 2022) – Tarachi Gold Corp. (CSE: TRG) (OTCQB: TRGGF) (Frankfurt: 4RZ) (“Tarachi” or the “Company” - https://www.commodity-tv.com/ondemand/companies/profil/tarachi-gold-corp/) is pleased to provide an overview of the Company’s accomplishments in 2021 and an outline of our priorities and goals for the year ahead.
“I am proud of the progress our team made during 2021, particularly at Magistral,” commented Cameron Tymstra, Tarachi CEO. “Despite experiencing three months of delays at the labs processing our tailings assays and metallurgical work, we were still able to drill out the basin and complete our Magistral PEA and mineral resource estimate less than a year since acquiring the project. The PEA outlines a robust and high-margin development scenario for Magistral that could potentially generate significant cash flows which in turn could help fund future exploration programs on the Company’s other projects. We are looking forward to an exciting year ahead focused on securing funding for the development of Magistral while continuing to assess additional opportunities that will support the Company’s future growth.”
Magistral Mill and Tailings
In February of 2021, the Company signed a purchase agreement with Manto Resources for the Magistral Mill and Tailings Project (“Magistral”) in Durango, Mexico. Throughout the year, the Company made significant progress in developing Magistral towards a production decision, including:
- An auger drill program across the tailings basin completed in May to provide assay data for a resource estimate and bulk material for metallurgical testing.
- Metallurgical test work released in November that demonstrated >80% gold recoveries without the need for re-grinding the feed (See press release dated November 2, 2021).
- Ausenco Engineering Canada Inc. (“Ausenco”) completed a Preliminary Economic Assessment (“PEA”) of Magistral in December, outlining a potentially high-margin, low-capex gold mining scenario (See detailed press release dated December 13, 2021 here). Highlights of the PEA include:
- average annual production of 16,000oz Au + copper concentrate by-product
- all-in sustaining costs of $705/oz, net of silver and copper credits
- after-tax IRR of 85%.
- An NI 43-101 resource estimate for the tailings was included in the PEA with 1.26Mt of material at a grade of 1.93g/t Au. Approximately 87% of the resource is in the Measured category.
- Electrical upgrades were made to the existing processing facility to prepare the site for connection to the local power grid in early 2022.
For the year ahead, the Company’s priority for Magistral will be to secure funding for the asset’s development while minimizing shareholder dilution. Tarachi’s management is considering various funding structures for Magistral and discussions are currently underway with several potential providers of capital.
Next steps at Magistral will include additional metallurgical test work to aid in the design of the SART circuit to be added to the existing facility and amending the project’s existing operating permits. The Company has also commenced its search for a General Manager for Magistral as well as a VP Operations who will be responsible for spearheading project development. Once funding has been secured, the Company aims to develop Magistral in a short timeline, with the recent PEA projecting a development period of 12 months.
Tarachi Project – Sonora, Mexico
In addition to the work at Magistral during 2021, Tarachi completed drill programs on both its Jabali and San Javier concessions in Sonora, Mexico.
On the Jabali concession, a Phase 2 underground drilling program at the La Dura mine returned the Company’s best drill intercepts to date (See press release dated May 6, 2021):
- Hole JAB-21-009: 40m of 6.91g/t Au starting at the drill collar.
- Including 9.3m of 17.42g/t Au and 9m of 17.37g/t Au.