VANCOUVER, British Columbia, July 06, 2020 (GLOBE NEWSWIRE) -- Rio Silver Inc. ("Rio Silver" or the "Company") (TSX.V: RYO) is pleased to announce that the Company has been notified by its partner, Peruvian Metals Corp. (“Peruvian Metals”), that Peruvian Metals plans to initiate an exploration and bulk sampling program on the high grade Au-Ag-Cu Palta Dorada project (“Palta Dorada” or the “Property”) early in the third quarter. The Company signed a Memorandum of Understanding (“MOU”) with Peruvian Metals in early January 2020 (see The Company’s news release January 9th) to jointly explore the Property by conducting a detailed sampling and mapping program along with a bulk sampling campaign. Under the MOU, Peruvian Metals is required to provide the upfront capital to start the program and has also informed Rio Silver that permits have been approved to extend underground workings at the main exploration target on the property. Extracted mineralized material from the underground exploration will form the bulk sampling program.
The Property, located in the Ancash Mining Department in Northern Peru, covers an area of approximately 1200 hectares. Precious metal mineralization at Palta Dorada consists of several high-grade Au-Ag-Cu structures hosted in granitic rocks. The gold-silver mineralization and exploration model is considered to be “Intrusion-Related Gold Vein System” similar to gold systems in Peru’s gold rich Pataz Mining Region, Nasca-Ocona Gold Belt and gold systems within the Tintina Gold Belt of Alaska.
Initial work at Palta Dorada identified and sampled four structures. The “Main Structure” that trends ENE-WSW consists of a quartz vein exposed both in outcrop and in two small underground adits and shafts. The Main Structure exposure is observed to have a strike length of over 800 metres and is open along strike in both directions. Artisinal workings expose portions of the Main Structure including a 53-metre-deep shaft where seven chip samples were taken at various depths from quartz vein containing sulphides. 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 0.31% Cu to 4.94% Cu over an average width of 0.60 meters. The weighted average of these samples from the quartz-sulphide vein is 10.51 g/t Au, 329 g/t Ag and 1.74% Cu.
A second mineralized structure, the “North 1 Structure” or “N1S” is observed north of the Main Structure and trends WNW-ESE. The intersection of these structures represents a good exploration target. Twelve samples were taken from very small workings over a strike length of approximately 480 meters. All samples were strongly oxidized and returned from 1.40 g/t Au to 17.3 g/t Au, 10.8 g/t Ag to 456 g/t Ag and 0.02% Cu to 0.14% Cu over widths of 0.20 to 0.80 meters. The weighted average of these samples from the oxidized quartz vein is 7.92 g/t Au and 102 g/t Ag. A bottle-roll metallurgical sample with a head grade of 13.0 g/t Au and 102 g/t Ag returned 92.15-per-cent gold and 65-per-cent silver recoveries over 36 hours. Two other gold bearing structures, the “South 1 Structure” or “S1S” and the “South 2 Structure” or “S2S”, were identified approximately 1500 meters south of the artisanal workings on the Main Structure. Limited sampling was conducted in this area however one sample was taken from a mineral sack ready for shipment to a toll mill and contained oxidized quartz material that returned 14 g/t Au and 74.4 g/t Ag.
Peruvian Metals plans to start a property wide sampling and mapping program followed up by a detailed magnetic survey. The exploration will also consist of continuing the underground sampling and mapping on the Main Structure by extending the underground workings both laterally and vertically. Permits have been submitted and approved to conduct underground work which will also result in bulk sampling of the mineralized material. The underground work will greatly aid in the understanding of the mineralized structures and can be followed by underground drilling. The COVID-19 restrictions imposed by the government at this time do not yet allow the Company to commence underground work. It is expected work will begin in the next phase of reopening of the Peruvian Economy.
Metallurgical work performed by Procesmin Ingenieros Laboratories from a composite sample from mineral ready for shipment by the previous owner had a head grade of 23.2 g/t Au, 29.0 oz/t Ag and 4.95% Cu. Metallurgical work showed that two concentrates can be produced. The first and more valuable concentrate graded 125.6 g/t Au, 4,808 g/t Ag and 24.41% Cu. A second Au-pyrite concentrate was also produced and graded 11.5 g/t Au, 565 g/t Ag and 2.90% Cu. Sales from metal concentrates produced from the bulk sampling activity will be shared between the Companies less all operational expenses related to the bulk sampling. Peruvian Metals’ 80% owned Aguila Norte Processing Plant will charge the joint effort commercial mineral processing rates on a similar basis to its other clients for processing the bulk samples. The Plant is accessible from the property by approximately 180 kilometres of mainly paved roadway.
Peruvian Metals will act as the operator of the joint effort and is responsible for the permits necessary to explore the property and to extract bulk samples. Chris Verrico the CEO of Rio Silver states, “Having recently purchased this tremendous asset and with the recent strength in gold prices, we remain excited to see Palta Dorada’s non-dilutive advancement underway with a seasoned in-country operator motivated to perform. Any returns from the bulk sampling campaign from processing this high-grade vein rock at Peruvian’s nearby custom milling plant, will bring mutual benefit to both groups and help to advance our 100% owned Ninobamba project in Southern Peru. Ninobamba is a world class medium/high sulfidation epithermal gold/silver deposit where $US 9 million in previous exploration and feasibility work has been completed and one that rivals the potential of any similarly endowed deposit being forwarded in Peru, to our knowledge”.
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.
About Rio Silver
Rio Silver Inc. is a Canadian Exploration and Mine Development company. Our business is to develop our 100% owned Ninobamba project and to unlock the tremendous potential for shareholder value identified from the previous $10 million spent by Newmont at the Jorimina Zone and others. Our own recently commissioned & independently constructed ‘exploration potential” model for Ninobamba Main has identified more world class development potential. Benefits are also soon to materialize from the carried development of the our new Palta Dorada Au Ag project, focusing on a near term revenue stream. For more information, please visit:
For more information contact:
Christopher Verrico, President, CEO
Tel: (604) 762-4448
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.