VANCOUVER, Sept. 6, 2019 /CNW/ - Rio Silver Inc. ("Rio Silver" or the "Company") (TSX.V: RYO) is pleased to provide the following update:
It is our pleasure, at this obvious juncture in the world's capital marketplace, to provide an update on Rio Silver Inc. (our "Company") and our objectives going forward.
It has been very difficult over the past several years for the junior mining industry. As you know, traditional access to equity capital markets for risk capital had all but disappeared. Renewed strength in the price of gold and silver has attracted new interest in our sector. As a junior exploration company, we depend on the equity markets to finance our projects and we feel the timing is now, to start aggressively exploring our Peruvian Flagship Property "Niñobamba" and to seek new gold/silver projects. Over $10 million CDN has been spent on the Company's property to date.
We feel that the Niñobamba property has the potential to become a world-class discovery. The precious metal mineralization is associated with an acid-sulfate or high sulphidation epithermal system. These types of systems are the main exploration target of major companies exploring for gold in the South American Andes. More specifically precious metal mineralization at Barrick's Pierina and Laguna Norte Gold Mines, and Newmont's Yanacocha are all associated with high sulphidation systems.
Niñobamba was considered by many to be a silver only project, however we recognize that these systems are mineralogical-zoned and therefore the Company has constructed a new conceptual model. This new approach aided in discovering a gold zone that was unrecognized by previous operators. An extensive surface trenching program that commenced in 2012 produced very favourable results.
Our first trench was placed in the area where Anglogold drilled an intercept of 130 metres of 2.8 oz/t Ag. The trench exposed extensive high sulphidation alteration returning an impressive 56 metres averaging 1.03 g/t Au and 98.9 g/t Ag. Further trenching 400 meters southwest and along strike continued to expose typical vuggy silica high sulphidation type alteration with the last 21 metres returning 1.32 g/t gold and 102 g/t Ag. The extent of the mineralization continues under deep colluvium. The last sample in the trench returned 0.53 g/t Au and 82 g/t.
In 2016 we expanded the surface areas by acquiring three adjacent concessions from Newmont. This acquisition included an extensive database and selective drill core. The database included assay results for over 6500 surface samples and assay results from 7880 metres of diamond drilling. Highlights from the drilling by Newmont included 72 metres of 1.2 g/t Au on the Joramina Zone, several kms distant from the Niñobamba mineralization. Over $6.5 million US was spent on these additional concessions by Newmont. Several highly anomalous silver zones were located and remain untested by drilling. With a better understanding of the precious metal zoning, more gold zones are likely to be discovered.
Moving forward, our Company will continue the exploration at Niñobamba by first re-establishing a good relationship with the local community. Much surface work is still required to better understand the results from the Newmont database. Permitting will commence shortly, with drilling expected in 2020.
2019 will continue to present many challenges for the junior mining industry. However, we feel that 2020 will be a rewarding year for Rio Silver. While we intend to recommence the exploration at Niñobamba, we continue to review new opportunities.
Our Company has an experienced Peruvian crew and a distinct competitive advantage of being able to generate and/or identify and quickly assess unrecognized opportunities. We are well positioned to take advantage of the world class exploration environment offered by Peru and its wealth of mineral opportunities. We will continue to identify new value-generating initiatives for our Shareholders.
In addition the Company is pleased to announce it has moved its corporate headquarters to Vancouver at 1600–595 Burrard St to better align itself with present management, industry wide partners and service providers, and in order to better serve shareholder base.
I would like to express my sincere appreciation to my fellow shareholders for their support over the years and look forward to an exciting future for our Company.
On behalf of the Board of Directors
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
For further information: regarding this press release, please contact: Christopher Verrico, President, CEO, Tel: (604) 762-4448, Email: [email protected], Website: www.riosilverinc.com