Rio Silver Provides Update on Niñobamba and Palta Dorada Projects
March 14 2023 - 08:00AM
Rio Silver Inc. (“Rio Silver” or the “Company”) (TSX.V: RYO) (OTC:
RYOOF),) is pleased to provide an update of its activities at both
the Niñobamba Au-Ag property (“Niñobamba”) and its 50% owned Palta
Dorada Au-Ag-Cu property (“Palta Dorada”).
The 100% owned Niñobamba project covers an area
of 4300 hectares and is royalty free. The project is comprised of
two mineralized areas: The Niñobamba Area and the Jorimina Zone.
Two different communities control the surface rights in the project
areas. The Company has conducted numerous meetings with community
directors and is confident that a surface access agreement to
facilitate a first phase diamond drilling program at the Jorimina
Zone will be concluded soon. Rio Silver has also been in
discussions with the community controlling the surface rights on
the Niñobamba Area. Although more social and community engagement
is required, a positive outcome is expected.
The Jorimina Zone is located approximately 6.5
kilometers west of the main zone of mineralization at Niñobamba.
The Company acquired an extensive database from Newmont Mining
Corp. (“Newmont”) which includes diamond drill logs and assays,
surface samples, geophysical data, and metallurgical testing.
Approximately $10 million US has been spent on historical
exploration programs since 2002 on the entire project area from
Anglogold and Newmont. The Company is pleased to have secured all
the data from these extensive programs.
From 2009 to 2010, Newmont Mining Corp.
completed thirteen diamond drill holes totaling 4377 metres at
Jorimina. As a highlight from the historic reports available, the
best intercept from the 13 holes, showed drill-hole JOR-001
returning 72.3 metres of 1.19 g/t Au starting at 53-meter depth.
The true widths of mineralization from this drillhole are not yet
known. Further drilling is required to determine both the lateral
and vertical extent of the mineralization.
Historical diamond drilling results conducted by
AngloGold in 2002 on the main Niñobamba Area zone included DDH-2,
which reported assay results of 87 g/t silver over a drilled
interval of 130 metres starting from a depth of nine metres, and
DDH-4, reporting 54 g/t silver over a drilled interval of 96 metres
starting from 23 metres. The true widths of mineralization from
this drill hole are not yet known and will be determined in the
upcoming planned drill program.
Highlights from the trenching program conducted
by Rio Silver in 2012 at the Niñobamba North Zone where the Company
discovered a new gold-silver zone include 56 metres of 1.03 g/t Au
and 98.9 g/t Ag in trench TR-01 and 21.77 metres of 1.32 g/t Au and
102.46 g/t Ag in TR-04 ending in mineralization (see Rio Silver
News Release of January 14, 2013). These results show that the
Niñobamba property possesses a strong gold component. Further
exploration is required to determine the precious metal zonation,
alteration patterns and widths. The trenches were cut approximately
perpendicular to the mineralized structure, and the true width of
mineralization is yet to be determined.
The Company is also pleased to announce that at
its joint venture mining project operator, Peruvian Metals Corp.,
has commenced stockpiling gold-silver-copper rich material taken
from Palta Dorada’s main workings. The Palta Dorada property, is
owned equally with Peruvian Metals and is located in Ancash
Department, Northern Peru. Sulphide mineralized material will be
shipped to Peruvian’s Aguila Norte Processing Plant, located 145
kilometres from the Palta Dorada project site on a combination of
gravel and paved roads.
Three random grab samples were recently taken by
JV partner Peruvian Metals from the mineral stockpiles and assayed.
The average grade of the samples was 7.55 g/t Au, 6.07 ounces /t Ag
and 0.70% Cu. Two samples were also taken from the sulphide bearing
quartz vein in the main adit where the material is currently being
extracted. Assay results over a 1 metre width averaged 14.07 g/t
Au, 9.01 ounces/t Ag and 2.01% Cu. In addition, two samples were
taken from the oxide zone above the main workings and averaged 12.5
g/t Au, 7.89 ounces/t Ag and 0.20% Cu.
The Company is continuing to open the workings
at Palta Dorada to access the sulphide Cu-Au-Ag material for the
collection of a bulk sample and plans to ship sulphide material to
the Aguila Norte Plant once it is determined that sufficient
mineral has been accumulated to create a high-quality concentrate.
Rio Silver expects to process this material during the second
quarter of 2023. Any accumulated oxide gold material extracted will
be sold to third party mills designed to treat the oxide
Rio Silver’s President, Chris Verrico states “We
are extremely pleased with the progress towards achieving access
agreements for both the Jorimina and Main Niñobamba zones. It is
likely the Company will conclude an agreement for Jorimina first as
those discussions are well advanced in anticipation of a Q3
resource defining diamond drilling campaign built around the
success that Newmont had achieved prior to 2012 on the
About Rio Silver
Rio Silver is a resource company that has been
selectively identifying and acquiring precious metal assets that
afford the best possible leverage and returns in anticipation of an
increasingly more favorable precious metals bull market. Our
Ninobamba area Au/Ag/Cu targets are suggestive of near surface,
bulk mineable open pit targets. At the Company’s Palta Dorada
Property in central Peru, a high-grade mesothermal gold and silver
vein system is currently being bulk-sampled and processed by 50%
partner, Peruvian Metals Corp.(“Peruvian”). Recent access
improvements to the upper workings have been installed allowing
access for an underground bulk sampling campaign, now underway,
within the previously sampled sulfide mineralization. Peruvian
operates the nearby Aguila Norte commercial mill where the
extracted mineral from the bulk sampling campaign will be
processed. Bulk sampling may be ramped up if successful and could
become a cashflow to assist the Company’s overall exploration plans
in a non-dilutive, shareholder friendly way. We remain ever
impressed and optimistic by the resilience and ingenuity of our
host country as Peru continues to endorse supportive mining
policies ensuring continued growth and opportunity throughout
Jeffrey Reeder, P.Geo., a qualified person as
defined in National Instrument 43-101, has supervised the
preparation, and approved the scientific and technical disclosure
contained in this news release.
ON BEHALF OF THE BOARD OF DIRECTORS OF RIO SILVER INC.
For further information,
Christopher Verrico, President, CEOTel: (604) 762-4448Email:
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
Rio Silver (TSXV:RYO)
Historical Stock Chart
From May 2023 to Jun 2023
Rio Silver (TSXV:RYO)
Historical Stock Chart
From Jun 2022 to Jun 2023