GR Silver drills two m of 1,177 g/t AgEq at Plomosas
GR Silver Mining Ltd. has released drill results that extend the high-grade silver mineralization 100 metres to the north along strike in the San Juan vein. Additionally, a wide, up-to-65-metre continuous silver-mineralized zone is delineated on the footwall of the Yecora vein, defining shallow, wide mineralized zones to be included in the coming maiden resource estimate at San Juan. Both veins are part of the vein system of the San Juan area of the Plomosas silver project in Sinaloa, Mexico.
The results contained within this news release integrate drill holes obtained from the company’s current drill program with the existing historic drilling data to support the coming maiden resource estimates on the Plomosas project. They represent intersections in two of the six veins already delineated in the San Juan area.
The high-grade silver mineralization encountered in the San Juan vein confirms continuity of the mineralization close to surface, 100 m to the north along strike, and also correlates with previously identified high-grade mineralization at depth.
GR Silver Mining president and chief executive officer Marcio Fonseca commented: “We are very pleased to report additional results from the company’s 2021 drilling of the San Juan area, which, in combination with historical drill results, significantly extend shallow high-grade silver vein structures. The results also identify wide mineralization adjacent to existing high-grade silver veins, defining a large epithermal system to support the maiden resource delineation under way for the San Juan area. These results highlight the potential of three of the six veins in the San Juan area to host a shallow high-grade resource. The remaining veins at San Juan provide an opportunity for possible future resource estimations.”
The broad interval of silver mineralization on the footwall of the Yecora vein represents the discovery of a much larger footprint than initially interpreted for this epithermal vein system, supporting potential open-pit-amenable zones. This type of wide mineralization, hosted in a hydrothermal breccia at Yecora, has geological similarities with high-grade silver-gold mineralization drilled 100 m along strike and previously reported (see news release dated Nov. 23, 2020). Ground geophysical data indicate the presence of large bodies at depth, possibly related to the widespread silver-mineralized zones at San Juan.
Surface diamond core drilling is continuing at the other veins within the San Juan area, particularly in the La Colorada vein. GR Silver continues to delineate high-grade, shallow silver-gold mineralization at the La Colorada vein. The La Colorada vein represents a northwest continuation of the Yecora vein in an area with a series of shallow old workings and where the vein system has the potential to be extended at least another one km along strike. The shallow core drilling program under way at the San Juan area will integrate three vein zones, San Juan, Yecora and La Colorada, with a combined total strike length of two km, into an initial maiden resource estimate.
Additional veins located in the San Juan area, which include San Francisco, Loma Dorada and La Odisea, will be the subject of additional diamond drilling in 2021, following the completion of the maiden resource estimation, intending to continue the company’s identification of new resources in the Plomosas project.
The associated table summarizes the most significant assay results for the drill holes in this news release covering the Yecora vein and the San Juan vein.
DRILL HOLE ASSAY RESULTS -- NEWS RELEASE DATED MAY 3, 2021 (YECORA VEIN AND SAN JUAN VEIN) Hole No. From To Drilled width True width Ag Au Pb Zn Cu AgEq (m) (m) (m) (m) (g/t) (g/t) (%) (%) (%) (g/t) SJS21-03A 166.2 169.2 3.0 2.9 144 0.09 0.3 0.8 NA 186 SJS21-04 117.0 127.5 10.5 9.8 242 0.31 0.4 0.8 NA 310 includes 118.2 120.3 2.0 1.9 954 1.29 1.2 1.6 0.1 1,177 118.2 119.2 1.0 0.9 1,184 2.27 1.3 0.9 NA 1,486 SJS21-05 108.9 123.5 14.6 12.5 52 0.05 0.1 0.4 0.01 73 SJS21-05 128.5 130.6 2.1 1.8 61 0.01 0.2 0.4 0.01 82 SJS21-06 70.0 76.0 6.0 5.8 31 0.10 0.1 0.2 0.01 47 SJS21-07 no significant assays SJS21-08 no significant assays SJS21-09 38.0 40.0 2.0 1.9 45 0.40 1.9 6.4 0.01 324 LRD-35 81.8 89.8 8.0 4.00 126 0.08 1.7 0.7 NA 214 LRD-37 40.0 62.3 22.3 20.2 62 0.31 0.6 0.4 NA 126 includes 53.2 59.5 6.3 5.7 154 0.96 1.2 0.4 NA 308 LRD-39 45.0 50.7 5.7 5.6 223 0.45 0.7 0.7 NA 312 LRD-50 46.4 112.2 65.8 46.0 10 0.04 0.4 0.8 NA 52 LRD-51 79.5 95.5 16.0 13.1 4 0.05 0.4 0.8 NA LRD-52 49.8 59.1 9.3 8.0 20 0.28 0.4 0.6 NA 80 67.0 71.5 4.5 3.9 311 0.08 0.8 0.2 NA 354 includes 69.2 70.3 1.1 1.0 781 0.21 1.5 0.3 NA 863 LRD-61 92.8 145.1 52.4 40.1 5 0.07 0.4 1.0 NA YE-6 35.6 36.4 0.8 0.6 27 0.01 1.7 6.3 0.1 272 63.8 65.0 1.2 0.9 6 0.01 1.7 1.8 NA YES20-02 0.0 15.0 15.0 13.2 2 0.31 0.2 1.9 NA YES20-03 209.2 244.9 35.7 31.5 1 0.06 0.1 0.6 NA 227.9 233.1 5.3 4.6 2 0.31 0.2 1.9 NA AgEq is based on long-term gold, silver, zinc, lead and copper prices of $1,600 (U.S.) per ounce gold, $16.50 (U.S.) per ounce silver, 85 U.S. cents per pound zinc, 95 U.S. cents per pound lead and $2 (U.S.) per pound copper. The metallurgical recoveries are assumed as 90 per cent Ag, 95 per cent Au, 78 per cent Pb, 70 per cent Zn and 70 per cent Cu. All numbers are rounded. Results are uncut and undiluted. NA means no relevant assays.
Based on the results to date, the company intends the following:
- To complete the remaining 1,600 m of surface drilling at the San Juan area by May, 2021, covering the San Juan, Yecora and La Colorada veins;
- To complete a maiden National Instrument 43-101 mineral resource for the San Juan area and a maiden NI 43-101 resource for the Plomosas mine area by the end of the second quarter of 2021;
- Surface drilling on three additional veins, San Francisco, La Odisea and Loma Dorada, to further delineate extensions to the known mineralization.
The Plomosas mine area and San Juan area represent two independent areas at resource estimation stage. The Plomosas mine area has a current strike length of 600 m, and the San Juan area is two kilometres in length. The company is completing two separate resource estimates, which will be part of the combined maiden NI 43-101 report for the Plomosas project.
Both areas have a geological footprint similar to the San Marcial project five km to the south. At the San Marcial project the company has estimated an initial NI 43-101 resource of 29 million ounces Ag (indicated) and 10 million ounces Ag (inferred) on the initial 500 m strike length. The San Marcial NI 43-101 resource is part of a larger six km trend under exploration, including a current ground geophysics survey and diamond drilling planned for later in 2021.
The integration of the Plomosas project and the San Marcial project, together with the recent acquisition of the Trinidad project, provides the company with full control of three major structural corridors on the eastern half of the Rosario mining district, representing a total of 75 km of strike length. During 2021, GR Silver Mining will continue to explore new mineralized zones, close to surface, within these projects, providing potential for additional resource growth.
Los Andes arranges $5M (U.S.) debenture financing
Los Andes Copper Ltd. has entered into an agreement with Queen’s Road Capital Investment Ltd. whereby Queen’s Road Capital will invest $5-million (U.S.) in Los Andes by the way of convertible debenture. The proceeds from the convertible debenture will be used for general corporate purposes.
The convertible debenture will have a five-year term, carry a coupon of 8 per cent and will be convertible into common shares in the capital of the company at a share price of $10.82. The interest is payable quarterly, 5 per cent in cash and 3 per cent in shares, at the 20-day volume-weighted average price prior to the interest payment date.
The proceeds received from this investment will be allocated toward the completion of the Vizcachitas project prefeasibility study.
The financing is subject to the satisfaction of customary closing conditions, including but not limited to TSX Venture Exchange and other regulatory approvals and the completion of due diligence and definitive documentation. The investment is expected to occur in May, 2021.
In conjunction with the investment, the chairman and chief executive officer of Queen’s Road Capital, Warren Gilman, has agreed to be nominated for appointment to the board of directors of the company at its coming shareholder meeting.
Fernando Porcile, executive chairman of Los Andes, commented: “We are pleased to have entered into this investment agreement with Queen’s Road Capital, and Los Andes is the company’s first investment in the copper sector, highlighting the high-quality nature of the Vizcachitas project.
“This investment follows the receipt of unanimous approval for drilling to be carried out at the Vizcachitas project, which is required to complete the ongoing prefeasibility study, and I look forward to keeping the market updated with our progress.”
Mr. Gilman commented: “Queen’s Road Capital is happy that its first investment in the copper sector is in Los Andes Copper. The Vizcachitas project is potentially the most advanced, ready-to-build copper porphyry project in South America. We look forward to working together with Fernando and his team as they advance the Vizcachitas project towards production.”
Abrasilver drills 75 m of 334.7 g/t AgEq at Diablillos
Abrasilver Resource Corp. has released assay results received from two additional diamond drill holes completed at the Oculto zone on its wholly owned Diablillos property in Salta province, Argentina.
Hole DDH 21-009 was drilled to test the intersection of the Main and Cross breccias. It intersected substantial, high-grade gold and silver mineralization near surface, including 75 metres of 2.24 grams per tonne gold and 166.7 grams per tonne silver from a downhole depth of 208 metres to 283 metres. Highlight intercepts from the two holes are presented in the attached table. This widespread high-grade mineralization is expected to add substantially to the existing silver and gold zones as well as the deeper gold resource.
DRILL RESULT HIGHLIGHTS Drill From To Type Interval Ag Au Cu AgEq (1) AuEq (1) hole (m) (m) (m) (g/t) (g/t) (%) (g/t) (g/t) DDH-21-009 68 69 Oxides 1.0 4.4 1.88 - 145.4 1.94 DDH-21-009 140.5 152.5 Oxides 12.0 115.0 - - 115.0 1.53 DDH-21-009 193 195 Oxides 2.0 53.7 1.43 - 161.0 2.15 DDH-21-009 208 283 Oxides 75.0 166.7 2.24 - 334.7 4.46 DDH-21-009 Including 208 264.5 Oxides 56.5 199.5 1.85 - 338.3 4.51 DDH-21-009 Including 225 263 Oxides 38.0 183.5 2.60 - 378.5 5.05 DDH-21-009 Including 273 283 Oxides 10.0 110.5 6.34 - 586.0 7.81 DDH-21-009 Including 274 280 Oxides 6.0 154.2 9.77 - 887.0 11.83 DDH-21-009 312.4 314.4 Sulphides 2.0 23.6 5.31 1.66 592.6 7.90 DDH-21-009 354 355 Sulphides 1.0 70.0 2.96 1.15 410.3 5.47 DDH-21-010 144 145 Oxides 1.0 70.2 2.50 - 257.7 3.44 DDH-21-010 174 179 Oxides 5.0 54.2 0.80 - 114.2 1.52 DDH-21-010 Including 174 175 Oxides 1.0 38.0 1.76 - 170.0 2.27 DDH-21-010 Including 178 179 Oxides 1.0 134.1 1.68 - 260.1 3.47 DDH-21-010 208 210 Oxides 2.0 295.9 4.00 - 595.9 7.95 DDH-21-010 220 221 Oxides 1.0 20.3 1.25 - 114.1 1.52 DDH-21-010 224 227 Oxides 3.0 17.5 0.79 - 76.8 1.02 DDH-21-010 241 260 Oxides 19.0 12.8 1.07 - 93.1 1.24 DDH-21-010 Including 241 251 Oxides 10.0 16.4 1.29 - 113.2 1.51 DDH-21-010 Including 241 246 Oxides 5.0 24.7 1.74 - 155.2 2.07 Notes: All results in this news release are rounded. Assays are uncut and undiluted. Widths are drilled widths, not true widths. True widths are estimated to be approximately 80 per cent of the interval widths. (1) AgEq and AuEq calculations for reported drill results are based on $20 (U.S.) per ounce silver, $1,500 (U.S.) per ounce gold and $3 (U.S.) per pound copper. The calculations assume 100-per-cent metallurgical recovery and are indicative of gross in situ metal value at the indicated metal prices. Refer to technical notes below for metallurgical recoveries assumed in the 2018 PEA (preliminary economic assessment) study on Diablillos.
John Miniotis, president and chief executive officer, commented: “Our drill results continue to far exceed expectations. The consistency of our phase I exploration program has been quite remarkable as we’ve now intersected high-grade mineralization over impressive widths in a total of 37 out of 44 holes (refer to phase I drilling summary), resulting in a high-grade hit rate of approximately 85 per cent. We believe these results will prove to be strategically important as Diablillos continues to emerge as one of the highest-grade, open-pittable, primary silver projects globally held by a junior company.”
Discussion of drill hole results
The results from hole DDH-21-009 continue to demonstrate the continuity of high-grade silver and gold mineralization at the intersection of the Main and Cross breccias as well as adding to the potential resources of the deeper gold zone. An additional five holes have been drilled in the zone of intersection of the Main and Cross breccias, which, together with drill results so far, will enable an indicated resource estimate to be made on the high-grade silver and gold zone in this area.
Hole DDH 21-010 was drilled to test the north-eastern extension of the Oculto mineralized system. The hole intersected multiple zones of good-grade mineralization. It was stopped in significant gold mineralization at a depth of 260 metres, with a 19-metre intercept from 241 metres to 260 metres grading 1.07 grams per tonne gold and 12.8 grams per tonne silver. The mineralization was not recognized in the drill core, being in fractured but relatively fresh basement rocks. This zone will be tested with future drilling of the northeastern zone.
Exploration program update
To date, the company has reported results from a total of 44 diamond drill holes, with results from an additional 10 holes currently pending from the laboratory.
The company has now completed drilling its phase I drill program (15,000 metres), for which all results will be incorporated into an updated resource estimate expected to be announced in Q3 2021. The company’s two drill rigs are now testing the continuity of gold mineralization in the northeast zone in support of an expansion of the Whittle Pit boundary, following which other targets peripheral to the Oculto zone will be explored.
Cerro de Pasco closes final tranche of financing
Further to its news releases dated April 7, 2021, April 8, 2021, and April 27, 2021, Cerro de Pasco Resources Inc. has closed the final and oversubscribed tranche of the non-brokered private placement. In connection with the closing of the final tranche, the Company issued 2,064,429 units at 35 cents per unit for gross proceeds of $722,550.
Under the different tranches of the Offering, the Company raised aggregate gross proceeds of $2,968,545, more than the original $2,500,000 target.
Each Unit consists of one common share of the Company (each, a “Share”) and one-half of one common share purchase warrant (each full warrant, a “Warrant”). Each Warrant entitles the holder to purchase an additional common share at a price of $0.50 for a period of 24 months from the date of issuance, provided however that the Company shall be entitled to accelerate the expiry of the Warrants to the date that is 30 days following the date a notice is provided to the holder in the event that the volume weighted average price of the Shares on the Canadian Securities Exchange exceeds $1.00 per Share for any twenty (20) consecutive trading days at any time prior to the expiry of the Warrant.
The net proceeds of the Offering will be used for general working capital purposes in advancing the Company’s Quiulacocha tailings retreatment Project in Peru. In connection with the completion of the final tranche of the Offering, the Company paid finder’s fees of $38,587 to certain parties who assisted the Company by introducing subscribers to the placement.
All securities issued in connection the closing of the final tranche of the Offering will be subject to a four-month-and-one-day statutory hold period in accordance with applicable securities laws.
One officer of the Company purchased a total of 43,000 Units. Their participation in the Offering constitutes a “related party transaction” as defined under National Instrument 61-101 — Protection of Minority Security Holders in Special Transactions (“NI 61-101”). However, such participation is exempt from the valuation and minority shareholder approval requirements of NI 61-101 based on the fact that neither the fair market value of the Offering, nor the consideration paid by such persons, exceeds 25% of the Company’s market capitalization. The Company did not file a material change report at least 21 days prior to the closing of the Offering as participation of the insiders had not been established at that time.
Norzinc arranges $1-million equity financing
Norzinc Ltd. has entered into an equity financing agreement with RCF VI CAD LLC, a wholly owned subsidiary of Resource Capital Fund VI LP, pursuant to which RCF VI LLC has agreed, subject to shareholder and regulatory approvals, to purchase $1-million of common shares of Norzinc on a non-brokered private placement basis at a price per common share equal to (i) the volume-weighted average price of the common shares on the Toronto Stock Exchange for the five consecutive trading days beginning on May 5, 2021,, less (ii) a 10-per-cent discount to the VWAP. The proceeds from the Investment will be used for general working capital purposes. The target closing date for the investment is May 12, 2021, subject to the approval of the Toronto Stock Exchange and other customary conditions for such a financing.
“We value our relationship with RCF as our largest shareholder, and appreciate its continued support for the company’s development of the Prairie Creek project,” said Rohan Hazelton, president and chief executive officer of Norzinc. “We look forward to working closely with RCF and all the company’s stakeholders to advance Prairie Creek in all aspects of development and financing to build a world-class, high-grade silver, zinc and lead mine in Canada.”
“We are pleased to welcome Rohan as CEO of Norzinc and are confident he and the team will build on the company’s existing track record to deliver and execute on a viable development plan and comprehensive financing package,” Justin Anderson, principal of RCF said. “We have held a long-standing partnership with Norzinc and look forward to ongoing participation in the next steps to advance the company and the Prairie Creek project, and delivering on the value in this world-class opportunity.”