Canadian miner Starcore International Mines has signed a non-binding letter of intent (LoI) with Manuel Felipe Arreguin Martinez to lease the latter’s San Juan Nepomuceno project (the Tortilla project) in Queretaro, Mexico for ten years until 2034.

The project includes six mineral claims and two properties. 

Under the lease agreement, Starcore will pay Manuel Felipe Arreguin Martinez 5m pesos ($268,500).

The payments are structured with 2m pesos due upon signing the definitive agreement, followed by monthly payments of 500,000 pesos over the subsequent six months.

Upon completion of all payments, Manuel Felipe will receive a 2% net smelter return (NSR) from the mineral production at the Tortilla project.

During the lease period, it retains the option to sell all its claims and concessions to Starcore at a purchase price of $7m.

The Tortilla project, located 150km from Santiago de Queretaro and in proximity to other mining operations, carries a rich history of mining activity dating back to 1557.

The area was continuously mined until 1870, with the deposit originally known as El Doctor Mine. British interests later resumed exploration in the 19th century, but their operations were short-lived, and no historical production records exist.

Starcore president and CEO Robert Eadie stated: “Although there are no historical production records, based on the size of the old mine sites and average ore grades, we believe we have an excellent opportunity to capitalise on the untapped potential of the Tortilla project and the attractive price of silver which has been steadily increasing for years.

“Our exposure is minimal, and the possibilities could be extremely rewarding.”

In June 2024, Starcore International Mines commenced exploration activities at the Kimoukro permit in central Cote d’Ivoire, 30km south of the capital, Yamoussoukro.