The property is located in Northern Sonora, Mexico, has three northwest-trending mineralization corridors, which each have distinctive regional geological features. Santa Gertrudis covers a potential strike length of 25 km of the favourable Cretaceous-age Intra-caldera sedimentary belt. The mineralized deposits form trends that are hosted mainly by the sedimentary Mural Formation but are not restricted to this unit. There is a distance of 18 km between the northernmost and southernmost mineralized deposits with the balance remaining to be explored. Recent exploration success has discovered two new high-grade deposits, called Amelia and Espiritu Santo which have led to the expansion of exploration drilling budgets for the project in an attempt to expand the resource and discover more high-grade deposits. 2021 exploration is expected to be for 30,000 metres with a budget of $11 million and will focus on Amelia, Espiritu Santo and the new Santa Teresa zone.
Agnico is evaluating a potential heap leach operation for the open pit lower grade ore and a small mill facility to process the higher-grade ore and anticipates annual production of 100 to 125 Koz of gold at AISC of $950 to $1,000 per ounce with production potentially starting in 2025.(4)
Santa Gertrudis was a recent acquisition by Agnico which closed in November 2017 for US$80 million (C$105 million) in cash. Metalla acquired its 2% NSR on the Property, 1% of which can be bought back at any time for US$7.5 million, in September 2018. Metalla views the Property as having strong resource expansion potential on its large 42,000-hectare land package. Historically, Santa Gertrudis produced over 550,000 ounces of gold in the 1990’s at an average head grade of 2.13 g/t gold.
Interest: 2% NSR Royalty
Location: Sonora, Mexico
Project Status: Development
Counterparty: Agnico Eagle Mines Limited (TSX:AEM; NYSE:AEM)
(1) See Agnico Eagle's Santa Gertrudis Project & Agnico Eagle Annual Report dated March 26, 2021 for details on the estimation of reserves & resources according to NI 43-101
(2) Numbers may not add due to rounding.
(3) Mineral resources which are not mineral reserves do not have demonstrated economic viability