VANCOUVER, Jan. 9, 2020 /CNW/ - Rio Silver Inc. ("Rio
Silver" or the "Company") (TSX.V: RYO) announces the acquisition of
the Palta Dorada Au-Ag-Cu property ("Palta Dorada" or the
"Property"). The property contains several high-grade gold-silver
veins both oxide and sulphide that has been mined by artisanal
methods. The Company has also signed a Memorandum of Understanding
("MOU") with Peruvian Metals Corp ("Peruvian Metals") to jointly
explore the Palta Dorada Au-Ag-Cu Property ("Palta Dorada" or the
"Property") by initially conducting a detailed sampling and mapping
program along with a bulk sampling campaign and processing the
mineral at Peruvian Metals' 80% owned Aguila Norte Processing Plant
("Aguila Norte or Plant").
The Palta Dorada Au-Ag-Cu Property is located in the Ancash
Mining Department in Northern Peru
and covers an area of approximately 1200 hectares. The Property is
accessible from the Plant by approximately 180 kms of mainly paved
roadway. The MOU establishes a joint effort to explore and develop
the property. Any sales from metal concentrates produced from the
bulk sampling activity and all operational expenses will be shared
between companies. Peruvian Metals' 80% owned Plant will charge the
joint effort commercial mineral processing rates on a similar basis
to its other clients for processing the bulk samples.
Peruvian Metals will also have the option to earn a 50%
ownership in the property. Equal ownership will occur once Peruvian
Metals has matched Rio Silver's
acquisition price of the project of $250,000 US by assuming all capital and
exploration expenditures. Any shortfall of capital expense by
Peruvian Metals will require a cash payment to the joint effort by
December 31, 2021. Both companies
will enter into a definitive shareholder agreement in Peru shortly.
Limited surface mapping and sampling has identified several
oxide Au-Ag veins hosted in granodioritic rocks. The previous owner
completed extensive production ready access to several levels for
exploration and bulk sampling, as well as limited small-scale bulk
sampling in several adits and shafts. The main working is a 53
metre shaft where miners hoisted mineral to the surface. Eight chip
samples have been taken from quartz veins containing sulphides in
the shaft at various depths. Results from these samples range from
3.06 g/t Au to 24.1 g/t Au, 36 g/t Ag to 865 g/t Ag and 0.22% Cu to
4.94% Cu over an average width of 60 centimeters. The weighted
average of the quartz-sulphide vein is 9.61 g/t Au, 256 g/t Ag and
1.42% Cu over the 60 centimeters. The mineralized NEE-SWW
mesothermal vein exposed in this main working has been observed
over an 800 metre strike length on surface. The oxide-sulphide
transition occurs at approximately 25 metres below surface.
At the initial property visit by the QP, approximately 45 tonnes
of mineral had been selectively exploited; hand sorted and sacked
outside of the main working ready for shipment to tolls mills in
Southern Peru. Two composite
samples were taken from various sacks and returned an average grade
of 26.7 g/t Au, 23.76 oz/t Ag and 3.16% Cu. The samples taken were
selected random grabs from hand sorted sacks and are not
representative of the mineralization hosted on the property.
A third random composite sample of approximately 50 kilograms
was taken from these sacks and used for metallurgical work. The
work performed on this sample by Procesmin Ingenieros Laboratories
head a head grade of 23.21 grams/MT Au, 29.04 oz/MT Ag and 4.95%
Cu. Metallurgical work showed that two concentrates can be
produced. The first and more valuable concentrate graded 125.59
grams Au/MT, 4,808 grams Ag/MT and 24.41% Cu. A second Au-pyrite
concentrate was also produced graded 11.46 grams/MT Au, 565 grams
Ag/MT and 2.90% Cu.
Artisanal workings on a second SEE-NWW structure north of the
main working exposed strongly oxidized quartz veins ranging between
30 to 70 centimeters in width. Four composite samples taken from
mineral sacks containing heavily oxidized material ready for
shipment ranged from 8.65 g/t to 17.3 g/t averaging 12.4 g/t Au.
The samples taken from the sacks were random grabs and are not
representative of the mineralization hosted on the property. A
bottle-roll metallurgical sample with a head grade of 13.0 g/t Au
and 102 g/t Ag returned a 92.15% gold and 65% silver recoveries
over 36 hours.
Peruvian Metals will act as the operator of the joint effort and
will be responsible to obtain all the permits necessary to explore
and extract a bulk sample and expects no permitting issues. An
experienced underground contractor has agreed to start the
mobilization of the compressors and equipment to the site to
extract the bulk sample. The bulk sampling and exploration is
expected to commence in the first quarter of 2020.
Chris Verrico, CEO of
Rio Silver states: "We are very
pleased to have accomplished these milestones, leveraging our joint
resources and working together. The Palta Dorada property has
several high-grade Au-Ag-Cu veins ready to be bulk sampled and
processed at the Aguila Norte Plant. Oxide gold material can also
be bulk sampled and treated at a number toll mills. Initial
development and exploration will consist of drifting along the
sulphide veins in this prominent structure, potentially identifying
a minable resource which would only enhance our ability to explore
our flagship Niñobamba project in a timely manner."
Jeffrey Reeder, P Geo, a
qualified person as defined in National Instrument 43-101, has
prepared, supervised the preparation or approved the scientific and
technical disclosure contained in this news release.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
This news release includes forward-looking statements that
are subject to risks and uncertainties. All statements within,
other than statements of historical fact, are to be considered
forward looking. Although the Company believes the expectations
expressed in such forward-looking statements are based on
reasonable assumptions, such statements are not a guarantee of
future performance and actual results or developments may differ
materially from those in forward-looking statements. Factors that
could cause actual results to differ materially from those in
forward-looking statements include market prices, exploitation and
exploration successes, continued availability of capital and
financing, and general economic, market or business conditions.
There can be no assurances that such statements will prove accurate
and, therefore, readers are advised to rely on their own evaluation
of such uncertainties. We do not assume any obligation to update
any forward-looking statements except as required by applicable
laws
SOURCE Rio Silver
