The tender process for three or more exploration concession blocks is expected to culminate in the granting of exploration concessions in late February 2011.
Previously the company had a strategy dependant on cash generation from direct shipping of bauxite to build a base for secondary processing including an alumina refinery, but the agreement now represents an opportunity to deliver value by securing finance with strategic partner Yankuang.
The mine will be an open pit, heap leach process and is scheduled to produce dore silver bars by the third quarter of 2011, which will be sold to smelters for further refining.