Wedoany.com Report-Apr. 7, Masivo Silver, a Canadian junior mining company focused on silver and gold exploration, has completed an agreement with Minera GoldZone and its partners to acquire the Cerro Colorado project in Sonora, Mexico. Located near Alamos, the project targets gold, copper, and silver deposits. The deal, finalized at arm’s length, sets out a payment and share issuance plan spanning four years.
The Cerro Colorado project comprises two properties, the El Tacon Dos (Cerro Colorado) concession, spanning 774ha, and the Valle Del Cobre concession, covering 1,875ha.
Under the terms, Masivo Silver will begin by issuing 300,000 shares and initiating talks for an eight-hole drilling program. Jorge Rafael Gallardo, a senior Mexican geologist, is leading the team to finalize the drilling design, with operations scheduled to start in May 2025. The company will apply a $75,000 (C$106,521) drill credit with a Mexican drilling firm to cover initial expenses and launch the project. Over the following years, anniversary payments will range from $60,000 to $100,000, with options for additional shares or cash. After meeting all obligations within 48 months, Masivo Silver will secure full mining rights. Minera GoldZone and its partners will hold a 1.5% net smelter return, which Masivo can buy for $1 million.
David Coburn, CEO of Masivo Silver, stated: “With the option agreement signed and all necessary permits already in hand, we are fully prepared to move forward. The drill targets are being carefully defined, being prioritised, and we are mobilising immediately to begin drilling these high-grade silver zones. This is a significant milestone for the Cerro Colorado project, and we are excited to start unlocking its full potential.” The company aims to explore the site’s rich mineral prospects efficiently.
The Cerro Colorado project includes two concessions: El Tacon Dos (Cerro Colorado), covering 774 hectares, and Valle Del Cobre, spanning 1,875 hectares. Located 11 kilometers north of the Piedras Verdes copper mine, the site benefits from its proximity to established mining operations. Historical records from 1972 show notable silver and gold concentrations, while recent sampling confirms strong signs of polymetallic sulphide deposits.
This acquisition strengthens Masivo Silver’s presence in Mexico’s mining sector. The company plans to leverage the region’s geological potential, focusing on sustainable exploration to develop the Cerro Colorado project into a productive asset. With drilling set to begin soon, the initiative marks a key step in expanding Masivo’s portfolio.
