Spectrum Acquisition has acquired a 50% interest in two Peruvian Gold Production Mining Acquisitions located in the World Renowned Pataz "Gold" Region. The Pataz province forms the central part of a 160-km-long gold belt extending along the Eastern Andean Cordillera in northern Peruand has produced a total of 6 million ounces of gold fromvein-type deposits during the last 100 yr.
Pataz Peru is the home of the largest gold mine in the world at Cajamarca and has the history of being the location where the Conquistadors were led to from the first encounter with the first Inca Indian in Peru on the nearby coast. In 1532 this led to the first Spanish mission taking over the Inca Empire collecting a treasure in gold and silver. Spectrum MundiRoyal mines are located in the province of Pataz which is one of the richest gold fields in Peru; indeed, it may almost be said that the towns of Pataz are built upon gold beds, for in the gutters in the streets of this town, after heavy rains particles of gold are met with the mud deposit, which the inhabitants call "astillas," the grains often weighing as much as a gram.
One concession is a production restart and the second is a low risk exploration project with exposed high-grade veins on the surface. The existing mine had produced hundreds of thousands of 80% fine gold ounces from veins averaging one meter wide with grade between 5 and 8 grams per ton. Production ended in the 1980s being that it was not as profitable in a $300 gold market as mining cost rose above $200 an ounce.With Gold well above $1,110 per ounce it makes this a potential lucrative acquisition.
Peru still has near the lowest mining costs in the world and is expected to restart having production costs around $300 per ounce. Spectrum feels this is a lucrative acquisition and opportunity for the company with slight risk because this is a producing mine (not a development mine) so there is low development risk.
Being a restart and producing mine, there should be production and revenues flowing soon after the restart of he mine. Both projects have processing costs contracted at a flat rate of $250 per ton. Mineralization is typical of the Pataz geological complexion with the gold being associated with sulfides in quartz at the present penetration of just over 1km. Infrastructure includes level tunneling on multiple levels with ore shoots, a railway present and industrial power on site with maintained roads.
Peruvian Gold Mining acquisition
Dale Henry, CEO of SPAH stated, "I am very pleased to announce that this acquisition will allow us the opportunity to use our patent-pending green mining technology to decrease our footprint on this region. I look forward to successfully developing the Pataz region as well as having the opportunity to work alongside our new partnership we have formed with a local corporation.
What's really exciting for Spectrum and its shareholders is that one of these acquisitions is a restart of a very successful gold producing mine. With projected processing costs at a rate of $250 per ton, both of these pending acquisitions should be very rewarding for Spectrum, especially with gold currently trading around $1,100 per ounce."
Information on the Mine: “Americano Norte”
Spectrum’s "North American" mine includes a gallery of quartz veins some as wide as 3 meters across, which has continuous production since the 15th century. Industrial mining ended in the 1980s as the gold market neared $300 per ounce.The name of the mine is "North American", which is located on the district of Pataz in the area of La Libridad, Peru. The geological formation is known as the PatazBatholith. This gold belt hosts the world's richest gold deposit at Cajamarca where the US owned Yanacocha mine has produced over US$7 billion in gold.
Mining costs:
While Peruvian rock mining costs are among the lowest in the world, the "North American" tunnels approaching 500 meters deep require improved ventilation and rail repair. Even with the added requirements, variable costs in the North American mine are still expected to be under $400 per ton while producing the current average grade of 5 to 8 grams per ton and a fineness of over 80% gold with significant silver credits.Having the additional silver credits in this mine make it much more of an attractive targeting acquisition for SPAH and its shareholders. As previously stated, this project is a restarting mine, so there is an expectation that much less is needed to set up production again.
Initial small upgrades to the mine:
Infrastructure improvements include a maintained road to the coast and industrial power to the site. A generous processing agreement is in place with terms including ore pickup at the mine paying 50% of the market price for recovered metals transitioning to a flat rate of $235 per metric ton of ore having grades over 22 grams per ton.
