Vancouver, British Columbia – February 27, 2020 – Rio Silver Inc. (“Rio Silver” or the “Company”) (TSX.V: RYO) discloses a Conceptual Exploration Target for the Company’s Niñobamba Silver Project (“the Niñobamba Model”), located approximately 330 km southeast of Lima, Peru.
The Niñobamba Model was prepared on behalf of the Company by Dahrouge Geological Consulting Ltd. of Edmonton, Alberta in preparation for the planning of future exploration of the property.
Chris Verrico, President and CEO of Rio Silver comments, “We are very pleased to receive this third-party model, which examined the easterly portion of the approximately 8,000 m long trend of anomalous precious metal mineralization between the Jorimina Au-Ag showing in the west and Niñobamba Ag showing in the east.”
Niñobamba Silver Project
The Niñobamba Model was completed on the basis that it would provide further understanding of the project’s ‘Exploration Potential’ and therefore help guide future exploration. The model focused on the “Niñobamba Main Zone” which can be broken down into two subparallel zones (a North and a South zone).
Following a thorough review of historical surface mapping, sampling, trenching and drilling, data utilized in the completion of the model included core from 18 drill holes (out of 44 total) and channel samples from 20 surface trenches. The model incorporated major rock units recorded on the project and the fault structures that constrain the mineralization. Geological trends and variability sensitives were defined using historical sampling and were used to support the Conceptual Exploration Target. Preliminary geostatistical evaluations were used in the generation of the Conceptual Exploration Target.
Historic exploration has shown the Niñobamba Main Zone (North) to have a minimum strike length of approximately 400 meters and apparent widths of 100 to 150 meters, and the Niñobamba Main Zone (South) to have a minimum strike length of approximately 400 meters and apparent widths of 50 to 100 meters.
A summary of the Conceptual Exploration Target for the Niñobamba Main Zone is as follows:
The Company cautions that the Niñobamba Model is not a resource declaration. The potential tonnages and grades are conceptual in nature and are based on previous trench samples and drill results that defined the approximate length, thickness, depth and grade of a portion of the North and South zones mineralized zones at Niñobamba. There has been insufficient exploration to define a current resource and the Company cautions that there is, among other uncertainties, a risk that further exploration may not result in the delineation of a current mineral resource or one that resembles the conceptual model.
Further Exploration Potential
The Niñobamba Model only assessed the silver potential of the eastern most 1,500 m of an approximately 8,000 m long trend of anomalous precious metal mineralization. As such, the Company believes the project to have significant exploration potential separate from the current conceptual model (silver), including:
- Niñobamba Main Zone (extensions), mineralization remains open on trend to both the east and west from the Niñobamba Main Zone (North and South) and constitutes a significant exploration target.
- Gold: as 8 of the historic drill holes were not analyzed for gold, the gold potential of the project is not well understood, however, it is demonstrated by the most recent trenches (ex. TR-01 includes 56 m of 1.03 g/t Au and 98.9 g/t Ag). All future core and rock samples need to be analyzed for both gold and silver.
- Jorimina Zone: approximately 6 km west of Niñobamba, Jorimina was the subject of an in-house exploration model (see company’s website) for gold and silver (Newmont, 2011), which was based on nine drill holes totaling 4,377 m by Newmont.
- Randypata: central to the main mineralized trend at Niñobamba, Newmont completed five drill holes at Randypata that require follow up exploration.
About the Niñobamba Model
The Niñobamba Model consisted of a desktop study of two mineralized trends (North and South) of the Niñobamba Main Zone. The High Sulfidation Epithermal precious metal mineralization at Niñobamba has been the subject of multiple mapping, trench sampling and drilling programs, including multiple exploration programs between 2001 and 2013 by:
- AngloGold Ashanti
- Bear Creek Mining Corporation
- Rio Silver
This compilation includes a total of 44 drillholes and 20 trenches within the entire Niñobamba area. Since the model focus was the Niñobamba Main Zone, it included only 18 of the drillholes and all 20 of the trenches.
Brad Ulry, P.Geo., Dahrouge Geological Consulting Ltd., a qualified person as defined in National Instrument 43-101, supervised the preparation and approves the scientific and technical disclosure contained in this news release.
Non-brokered Private Placement
The Company is also pleased to announce a non-brokered private placement of up to 6,000,000 units (“Units”) of the Company at $0.05 per Unit for gross proceeds of up to $300,000 (the “Offering”). Each Unit will consist of one common share of the Company and one common share purchase warrant (each, a “Warrant”) of the Company. Each Warrant will entitle the holder to acquire one additional common share of the Company at a price of $0.10 per share for a period of 2 years from issuance, unless the closing price of the common shares of the Company is $0.20 or higher for fifteen (15) consecutive trading days any time after the date that is four months and a day after issue, in which case the Warrants will expire thirty (30) calendar days after notice to Warrant holders announcing an earlier expiry date. It is anticipated that certain insiders of the Company will participate in the Offering.
The Company may pay certain finders’ fees in connection with a portion of the Offering subject to the policies of the TSX Venture Exchange (the “Exchange”). The securities issued herein will be subject to a four-month statutory hold period. The closing of the Offering is subject to the approval of the Exchange.
For more information contact:
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 forwardlooking 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.