Vancouver, BC, March 5, 2021 /CNW/ - Denarius Silver
Corp. ("Denarius Silver" or the "Company") (TSXV:
DSLV), is pleased to announce its common shares will commence
trading on the TSX Venture Exchange on March
8, 2021 under the symbol "DSLV".
Highlights:
- Mining portfolio with exposure ranging from exploration to
near-term production of multi-metal assets offering leverage across
multiple markets.
- Lomero-Poyatos, to be acquired by the Company, is a
polymetallic deposit located on the Spanish side of the prolific
copper rich Iberian Pyrite belt with a historical inferred resource
of 22.17 MT of 3.08 g/t gold, 62.38 g/t silver, 0.90% copper, 0.85%
lead and 3.05% zinc that remains open at depth and along strike. A
qualified person has not done sufficient work to classify the
historical estimate as current mineral resources or mineral
reserves, and the Company is not treating the historical estimate
as current mineral resources or mineral reserves.
- In connection with the acquisition of the Lomero Project, the
Company is completing a non-brokered private placement financing
(the "Concurrent Financing") to raise up to $33.75 million through the issuance of up to
75,000,000 subscription receipts of the Company at a price of
$0.45 per subscription receipt. The
Concurrent Financing has been fully-subscribed and is expected to
be completed shortly. Part of the commission will be paid in
units.
- Guia Antigua Project, a past silver producer adjacent to Gran
Colombia Gold's flagship Segovia mine (TSX: GCM), has previously
produced over 78,000 oz of silver at an average grade of 404 g/t
silver.
- Zancudo Project, a past gold-silver mine, previously produced
over 1.5 million oz of gold at an average grade of 14.6 g/t gold
and 108 g/t silver, acquired from Gran Colombia Gold and currently
under option to IAMGOLD (TSX: IMG).
- Projects within close proximity to producing operations with
robust infrastructure in place to help quickly advance
projects.
- Exploration programs conducted by prior ownership on all three
projects have returned high grade mineralization consistent with
the rich history of the properties as well as the prolific
neighboring deposits.
- Strong cash position and management with a track record of
shareholder wealth creation via exploration, development and
mining.
- Strong shareholder base 36% owned by Gran Colombia Gold (TSX:
GCM).
Lomero-Poyatos
The Company has entered into a binding letter agreement with
Qvartz Capital Partners Inc. as assignor and the shareholders of
Transcontinental Gold Mines Pty Ltd., in order to acquire a 100%
interest in Investigation Permit Nº 14,977 covering the areas
occupied by the former Lomero-Poyatos Concessions and the mine
within them in southern Spain (the
"Lomero Project").
Investigation Permit Nº 14,977 comprises 15 graticular blocks
totalling approximately 454 hectares within the adjoining
Municipalities of El Cerro del Andevalo and Cortegana within the
Huelva Province of the Autonomous Community of Andalucía in
southern Spain. The area covered
by the Permit is located approximately 85 km north-west of
Seville and 60 km north-east of
the port of Huelva and includes the area previously occupied by 13
mining concessions including the former Lomero-Poyatos Mine. The
Rubia Permit is an Investigative Mining Permit of approximately 454
hectares covering the Lomero-Poyatos Project which is a
polymetallic deposit located in the Huelva Province in Southern Spain, within the Iberian Pyrite Belt
which is one of the largest districts of pyrite-rich massive
sulphide deposits in the world.
The project deposit site is well serviced by water, power, paved
highways, port access and is also positioned in close proximity to
the Matsa JV project which has processing facilities with the
capacity to process 4.4M tons of
copper and polymetallic ore annually. Exploration conducted by
prior ownership indicates a historical inferred resource of 22.17
Mt of 3.08 g/t gold, 62.38 g/t silver, 0.90% copper, 0.85% lead and
3.05% zinc. The mineral resource is reported within a >25% S
mineral envelope at a cut-off grade of 1.0 g/t Au for an
underground mining scenario. The mineral resource estimate was
reported in a NI 43-101 technical report by Behre Dolbear with effective date of 2011. A
qualified person has not done sufficient work to classify the
historical estimate as current mineral resources or mineral
reserves, and the Company is not treating the historical estimate
as current mineral resources or mineral reserves. The
Lomero-Poyatos (Rubia Permit) deposit remains open at depth and
along strike and SRK has been contracted to design an exploration
program to confirm the inferred resource base and further explore
the potential at Lomero-Poyatos (Rubia Permit).
Acquisition of the Lomero Project remains subject to the
negotiation of definitive documentation, completion of the
Concurrent Financing and the approval of the TSX Venture
Exchange. For further information concerning the acquisition,
readers are encouraged to review the news release issued by the
Company on February 25, 2021.
Guia Antigua
The Guia Antigua Project encompasses the exploration,
development and mining rights to a 386-hectare area located in the
eastern part of Gran Colombia's Segovia mining title focused on the
Guía Antigua vein which falls
outside the areas associated with Gran Colombia's mining operations
and exploration activities. The Guia Antigua Project is located 130
kilometers northeast of Medellin
(227 kilometers by road) in the Segovia-Remedios mining district,
Department of Antioquia, north-western Colombia and is about five kilometers east of
the town and mining centre of Segovia.
The Guia Antigua Project includes the historic silver-gold
producing Guia Antigua Mine. Artisanal miner development work on
two levels over a 150 meter strike length define the historical
Guia Antigua Mine. There has been no mechanized mining of the Guia
Antigua vein. The Guia Antigua Mine was operated by an unknown
company prior to 2014 and by Sociedad Guias Gold, a private
company, under contract with Gran Colombia from October 2014 through October 2016. Recorded production was 6,034
metric tons of ore with an average head grade of 404.90 g/t silver
and 6.05 g/t gold containing 78,558 ounces of silver and 1,173
ounces of gold, with a silver-gold ratio of 67. The prior
production is not known and there has been no additional production
since 2016.
The Guía Antigua vein is a
high-grade silver-gold vein which is oriented
sub-parallel to an aphanitic dyke
hanging wall and highly weathered
foliated metamorphic footwall within the Upper Jurassic
Segovia Batholith. There is a systematic increase in the silver
grade and the silver-gold ratio from west to east in the Segovia
mining title. From 2014 to 2016, Sociedad Guias Gold carried out
systematic channel sampling of the Guia Antigua Mine. A short drill
program of 1,753.9 m was carried out
in 2018-19.
Zancudo
The Zancudo Project consists of a 1,052-hectare mining
concession area located in the Titiribi mining district in
Antioquia, Colombia, about 27
kilometers southwest of Medellin.
Zancudo comprises a historical gold mine (the Independencia Mine)
located in the Middle Cauca Gold Belt. The estimated total
historical production dating back to 1793 is 1.5 to 2.0 Mozs of
gold equivalent with recovered grades of 14.6 g/t Au and 108 g/t
Ag. The Independencia Mine exploited an epithermal intermediate
sulphidation type vein system over 3.5 kilometers strike length and
to a depth of approximately 300 meters.
Gran Colombia acquired Zancudo
in 2010 and completed a 14,000 meter drilling program in 2011 and
2012. In March 2017, Gran Colombia
signed an option agreement with IAMGOLD Corp. ("IAMGOLD")
for the exploration and potential purchase of an interest by
IAMGOLD in Zancudo. Under the agreement, IAMGOLD has been granted
an option to acquire an initial undivided 65% interest (the
"First Option") in Zancudo by incurring an aggregate of
US$10 million of mineral exploration
expenditures over a six-year period, subject to meeting specified
annual work commitments during this period. From 2017 through 2019,
IAMGOLD completed a total of approximately 16,224 meters of
drilling at Zancudo and has incurred over US$4 million of its exploration commitment.
However, due to COVID-19, IAMGOLD suspended its drilling program in
2020. IAMGOLD has also been granted an additional option (the
"Second Option") to acquire a further 5% undivided interest,
for an aggregate 70% undivided interest in Zancudo, by completing a
feasibility study within three years after exercising the First
Option. Upon exercise of the First Option or the Second Option, as
the case may be, the parties will form a joint venture to hold
Zancudo, to advance the exploration and, if feasible, to advance
the development and mining of any commercially exploitable ore
body.
In conjunction with its exploration campaign, IAMGOLD has
implemented a number of ESG initiatives in the local community at
Zancudo, including a beekeeping project focused on providing
training to local beekeepers, improving efficiency in honey
production and marketing support.
Corporate Highlights
As at listing, Denarius Silver has 93,117,915 common shares
issued and outstanding, along with 2,375,250 common share purchase
warrants warrants and 9,200,000 incentive stock options.
Denarius Silver is led by an experienced team of mining
professionals including:
- Serafino Iacono, Executive
Chairman
- Frederic Leigh, CEO and
Director
- Mike Davies, CFO
- Jeff Couch, Director
- Lombardo Paredes-Arenas,
Director
- Paul Sparkes, Director
Qualified Person Review
The technical information in this news release has been reviewed
and approved by Stewart Redwood, BSc
(Hons), PhD, FIMMM, FGS, a "Qualified Person" as defined under
National Instrument 43-101.
On Behalf of the Board of Directors,
DENARIUS SILVER CORP.
Neither the 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.
Statements included in this announcement, including
statements concerning our plans, intentions and expectations, which
are not historical in nature are intended to be, and are hereby
identified as, "forward–looking statements".
Forward–looking statements may be identified by words
including "anticipates", "believes", "intends", "estimates",
"expects" and similar expressions. The Company cautions readers
that forward–looking statements, including without
limitation those relating to the Company's future operations and
business prospects, are subject to certain risks and uncertainties
that could cause actual results to differ materially from those
indicated in the forward–looking statements. The
Company is not treating the historical estimate of inferred
resources mentioned in this press release as current mineral
resources or mineral reserves. Inferred resources have a great
amount of uncertainty as to their existence, and as to their
economic and legal feasibility. Estimates of inferred resources may
not form the basis of feasibility or other economic
studies.
SOURCE Denarius Silver Corp.