VANCOUVER, BC, May 30, 2022
/CNW/ -- Silverton Metals Corp. (TSX-V: SVTN, OTCQB: SVTNF)
("Silverton" or the "Company") is
pleased to announce that it has entered into a share purchase
agreement with Zapata Exploration Ltd. ("Zapata") and 0924682 B.C. Ltd. ("0924682") to acquire the
Margaritas Gold-Silver Property ("Margaritas") by acquiring all of
the issued and outstanding shares of Zapata's Mexican Subsidiary,
Impulsora De Proyectos Mineros, S.A. De C.V. ("Impulsora").
The Margaritas Gold Property consists of two concessions
totalling 500 hectares located in the state of Durango, Mexico.
Highlights of Margaritas Gold Property:
- Underexplored, high-grade epithermal gold-silver deposit
hosted in productive volcanic rocks of the Sierra Madre
Occidental.
- Gold grades include 73.7 g/t in dump samples and 31.6 g/t in
rock chip channel samples with silver grades between 1 to 38
g/t.
- Vein is exposed for 3.5 km along strike and 240 meters along
the vertical.
- Artisanal production exists but the vein has never been
drilled.
John Theobald, President and CEO commented, "We are very
excited about the Margaritas acquisition as it contains a
high-grade gold vein open in all directions with visible gold and
the potential to be a bonanza-grade deposit. Both the environmental
permit application and community agreement process have already
commenced, which have given the company a head start on the
exploration of the project. Favourable topography facilitates
drilling and or tunnelling and eventually would also facilitate
underground mining. The simple mineralogy suggests that the gold
could be easily extracted by gravity and leaching methods. We plan
to rehabilitate roads, refine mapping and sampling, and get the
project ready for drilling before the end of the year."
Margaritas Gold Property
The Margaritas Gold Property
consists of two concessions, Margaritas and Ampliacion las
Margaritas, that cover a total of 500 hectares located in the
southwestern corner of the State of
Durango, Mexico.
Channel rock chip sampling by the previous operator report gold
grades between 0.01 and 31.6 g/t and between 0.7 and 73.7 g/t in
dump samples. Silver grades vary between detection limit (<0.2
g/t) and 38 g/t in both dump and rock-chip channel samples. Visible
gold has been found in pits, trenches and dumps located along the
central part of the vein.
The deposit is a gold dominant low-sulphidation epithermal
system similar to productive deposits such as La Cienega, and Bacis in Durango, located 250
kilometers northwest of Margaritas. The mineralization at the
Margaritas Gold-Silver Property consists of native gold and
accessory silver, and gangue of silica, clays, and traces of
pyrite, contained in a quartz vein controlled by a fault and
fractures hosted in Tertiary rhyolites of the productive Sierra
Madre Occidental. The vein has been mapped along strike for
3,500 meters; on surface the vein averages a meter wide and has a
maximum width of 4 metres. Vein walls exhibit hydrothermal
alteration halos that are potentially mineralized. A 2-meter-wide
sample, for example, in argillized rock in the footwall of the
vein, reported 1 g/t Au.
Terms of Transaction
In order to acquire all of the
issued and outstanding shares of Impulsora, the Company has agreed
to issue 750,0000 common shares (the "Consideration Shares") and
grant a net smelter return royalty of 0.5%, which may be
repurchased at a price of US $250,000. Zapata and 0924682 are a private
company controlled by Chris Osterman
and Raul Diaz-Unzueta.
Impulsora originally acquired its interest in the Margaritas
Property pursuant to the terms of transfer of mining concessions
and assignment of rights agreement, as amended (the "Underlying
Agreement"). Under the terms of the Underlying Agreement, the
Margaritas Property is subject to a 1% Net Smelter Return Royalty,
which may be repurchased for US $320,000 (of which US $120,000 has been paid). The remaining US
$200,000 must be paid as follows: US
$100,000 plus VAT on April 25, 2023 and US $100,000 plus VAT on April
25, 2024. If Impulsora does not commence commercial
production or repurchase the royalty by April 25, 2024, the original owner may repurchase
the Margaritas Property for $1.
Closing of the acquisition is subject to satisfying certain
customary conditions and the acceptance of the TSX Venture
Exchange.
Qualified Person
The scientific and technical
information contained in this news release has been reviewed and
approved by Peter Born, P. Geo., a
Qualified Person for the purpose of NI 43-101.
On behalf of the Board
John Theobald
President, CEO & Director
Silverton Metals Corp
About Silverton Metals Corp
Silverton Metals Corp is a
Canadian company focused on the exploration and development of
quality silver projects. The company holds a 100% interest in three
significant silver assets in Mexico – Pluton, in Durango, Peñasco Quemado
in Sonora and La Frazada in
Nayarit. Silverton management and board have experience
identifying and evaluating acquisition targets and exploration
prospects. The company intends to build a strong portfolio of
silver and gold-silver projects to drive future growth by
exploration success and from later stage projects with production
potential. To achieve this growth the Silverton business plan calls for a dynamic
combination of development of its existing properties,
acquisitions, and partnerships.
For further information please contact:
Silverton Metals Corp.
W. Barry Girling, VP Corporate
Development and Director
(604) 683-0911
Forward-Looking Statements
Information set forth in
this news release contains forward-looking statements that are
based on assumptions as of the date of this news release. These
statements reflect management's current estimates, beliefs,
intentions, and expectations. They are not guarantees of future
performance. Silverton cautions
that all forward looking statements are inherently uncertain, and
that actual performance may be affected by a number of material
factors, many of which are beyond Silverton's control. Such factors include,
among other things: risks and uncertainties relating to
Silverton's limited operating
history and the need to comply with environmental and governmental
regulations. Accordingly, actual, and future events, conditions and
results may differ materially from the estimates, beliefs,
intentions, and expectations expressed or implied in the
forward-looking information. Except as required under applicable
securities legislation, Silverton
undertakes no obligation to publicly update or revise
forward-looking information.
NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES
PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX
VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR
ACCURACY OF THIS RELEASE.
For further information please contact:
Silverton Metals Corp.
www.silvertonmetals.ca
W. Barry Girling, VP Corporate
Development and Director
(604) 683-0911
View original content to download
multimedia:https://www.prnewswire.com/news-releases/silverton-metals-to-acquire-margaritas-gold-silver-property-durango-mexico-301557066.html
SOURCE Silverton Metals Corp.