UK-based Arian Silver has signed a memorandum of understanding (MoU) to evaluate Tierra Nueva Mining's (TNM) portfolio of mineral properties in Zacatecas state, Mexico.
Under the MoU, Arian will have 90 days to assess TNM's portfolio of interests in order to invest in them.
The portfolio includes the option on the Noche Buena hard rock project and complete ownership of the associated tailings project.
The Noche Buena project is adjacent to Goldcorp's 'Penasquito' project in the northern part of Zacatecas. Noche Buena operated from 1926, and closed in 1993 due to weak metal prices then.
Based on production records, it was found that about one million tonnes were mined at Noche Buena with up to 20g/t gold, 800g/t silver and 8% lead and zinc.
Tailings at the mine are reported to have a NI 43-101 compliant resource of one million tonnes containing 3g/t gold, 55g/t silver, as well as 0.8% zinc.
Arian Silver CEO Jim Williams said: "We are pleased to be making progress in rebuilding Arian, whilst remaining cognisant of the current low metal prices and the fact that investor sentiment towards the mining sector remains negative.
"With this in mind, we are initially concentrating our efforts on near-term and low-cost production opportunities, possibly through the leaching of tailings.
"Mining and metals markets operate in cycles and the current sentiment will change in time, as such we are also looking at projects with longer-term potential."