Prospero Silver Corp.
TSX VENTURE : PSL

Prospero Silver Corp.

February 03, 2016 09:30 ET

Prospero Silver and Altiplano Sign New Agreement for the San Luis Cordero Project

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Feb. 3, 2016) - Prospero Silver Corp. (TSX VENTURE:PSL) ("Prospero") is pleased to announce that it has entered into a new agreement with Exploraciones del Altiplano, S.A. de C.V. ("Altiplano"), a privately held Mexican Company, in respect of new work programs on the San Luis del Cordero property in Durango State, Mexico ("Cordero"). A previous agreement, dated August 29, 2008, contemplated Prospero completing an exploration program exploration at Cordero with staged payments of cash; the issuance of Prospero shares and certain exploration expenditures on the property, leading to Prospero acquiring 100% ownership, subject to a residual 2% NSR royalty for Altiplano. Due to difficult market conditions, Prospero was not able to keep pace with the cash and expenditure requirements of that 2008, and had to rely on informal accommodations from Altiplano in order to retain its interest in the Cordero property. The 2008 agreement called for cash payments totaling US$450,000; US$1,650,000 in exploration expenditures and the issuance of 392,000 (post-consolidation) Prospero shares. To date, Prospero has paid US$102,333; made US$1,081,577 in exploration expenditures and issued 108,000 shares.

Particularly in the context of Prospero's recently announced agreement with Golden Minerals Company ("Golden Minerals") (NYSE MKT:AUMN)(TSX:AUM) for the possible development of a mine at Cordero's Sta. Rosa vein, Prospero and Altiplano recognized the need to update their formal Cordero property agreement. Reference is made to Prospero news releases dated November 17, 2015 (agreement with Golden Minerals; discussed below) and October 7, 2014 (publication of an NI 43-101 compliant resource estimate).

The new agreement with Altiplano provides for Prospero to complete its acquisition of the 100% of the Cordero property by making staged issuances to Altiplano of a total of an additional 600,000 Prospero shares over the next 20 months, subject to Altiplano retaining a residual 2% NSR royalty interest. This new Cordero agreement remains subject to acceptance by the TSX Venture Exchange. Any share issued to Altiplano under this new agreement will be subject to the customary 4-month hold periods.

Golden Minerals has commenced studies on the Santa Rosa vein. Dewatering of the historic mine workings has started, to be followed by collecting and assaying fresh samples from the exposed vein, and metallurgical test work. This metallurgical test work will be used to determine what changes might need to be made, if any, to the existing crushing, milling, and flotation circuits at Golden Minerals' existing processing facilities. Golden Minerals also plans to carry out drilling for mine planning, as well as seeking to establish an expanded resource. Upon completion of such confirmatory work over the coming months, and assuming it is satisfied with the outcome of its investigations, Golden Minerals will proceed with engineering and permitting for mining of the Santa Rosa vein system.

The Cordero Project. The NI 43-101 compliant resource estimate on the Cordero Santa Rosa vein system was disclosed in the Report on the Initial Resource Estimate for the San Luis Del Cordero Project, dated October 1, 2014, (the "Cordero Technical Report") and filed under Prospero's issuer profile on SEDAR (www.sedar.com) on November 18, 2014 (see p. 54):


Zone

Class

Tonnes
AgEq3
g/t
Ag
g/t
Cu
%
Zn
%
Ag
ozs
AgEq
Ozs
4
Sta. Rosa vein Indicated 31,500 1022.6 827.8 1.21 1.98 838,366 1,035,663
Sta. Rosa vein Inferred 218,437 955.4 716.4 1.12 3.62 5,031,291 6,710,075
  1. Mineral Resources are not Mineral Reserves because there are insufficient studies to demonstrate economic viability.
  2. It cannot be assumed that all or any part of an Inferred Resource will be upgraded to an Indicated or Measured Resource as a result of continued exploration.
  3. AgEq = Ag + [Cu% x 22.046 x Cu price x 31.103/Ag price + Zn% x 22.046xZn price x 31.103/Ag price]. Metal prices used in the formula: silver = US$19/oz, copper = US$3.00/lb, Zn = US$0.90/lb.
  4. AgEq ozs = AgEq grams/31.103

The Cordero Technical Report discloses a resource estimate on Cordero describing:

  • A high-grade silver/copper/zinc resource at its historic Santa Rosa Mine - see table above.
  • Lower grade silver/copper values in a distinct structurally and strata-bound controlled skarn zone extending some 3 Km to the east and southeast - see table below.

Zone

Class

Tonnes
AgEq3
g/t
Ag
g/t
Cu
%
Zn
%
Ag
ozs
AgEq
Ozs
4
Sta. Rosa East skarn Indicated 631,125 200.8 86.1 0.76 1.02 1,747,094 4,075,335
Sta. Rosa East skarn Inferred 2,566,875 214.9 95.7 0.72 1.26 7,897,950 17,734.488
  1. Mineral Resources are not Mineral Reserves because there are insufficient studies to demonstrate economic viability.
  2. It cannot be assumed that all or any part of an Inferred Resource will be upgraded to an Indicated or Measured Resource as a result of continued exploration.
  3. AgEq = Ag + [Cu% x 22.046 x Cu price x 31.103/Ag price + Zn% x 22.046xZn price x 31.103/Ag price]. Metal prices used in the formula: silver = US$19/oz., copper = US$3.00/lb., Zn = US$0.90/lb.
  4. AgEq ozs = AgEq grams/31.103

Prospero's 2015 agreement with Golden Minerals deals only with the Santa Rosa vein system. Prospero plans to consider further exploration with a view to expanding the resource of the Santa Rosa East Skarn, with additional drilling if and when market conditions permit.

Tawn Albinson, M.Sc., President of the Company, is a Qualified Person, as defined in NI 43-101, and is responsible for the technical content of this press release.

About Prospero Silver Corp.:

Prospero is a Canadian resource company with the majority of its staff based in Mexico and who work for its wholly-owned subsidiary Minera Fumarola, SA de CV. Prospero's objective is to quickly evaluate the properties currently optioned for their suitability to provide size potential and/or amenability for strategic joint ventures. For additional information on Prospero, readers are encouraged to see the disclosure documents filed under the Company's profile at www.sedar.com, and to visit the Company's website at www.prosperosilver.com.

Forward-Looking Statements Cautions:

This press release contains certain "forward-looking statements," within the meaning of Canadian securities legislation, including statements relating to the Company's plans to participate in mining operations on its Cordero project property and to undertake new exploration efforts in order to identify additional resources on the Cordero property, more specifically, on the Santa Rosa East Skarn. Forward-looking statements are statements that are not historical fact. They are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made and they involve a number of risks and uncertainties. Consequently, there can be no assurances that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. The Company undertakes no obligation to update these forward-looking statements if management's beliefs, estimates or opinions, or other factors, should change, unless required by law, including the rules and regulations of the TSX Venture Exchange. Factors that could cause future results to differ materially from those anticipated in these forward-looking statements include the following risk factors: the Company might not be able to secure sufficient additional financing for its planned exploration and development activities; Golden Minerals or Prospero might not be satisfied with their further due diligence investigations, including drilling, metallurgical work and engineering studies, such that the proposed new mining operations will not proceed; the Company or Golden Minerals might encounter problems such as further significant depreciation of metals prices; the possibility of accidents and other risks associated with mine development and production operations; the Company or Golden Minerals might encounter unanticipated geological factors the makes the proposed mining operations not viable; the possibility that the Company or Golden Minerals might not be able to secure permitting and other governmental clearances necessary to carry out the proposed mineral exploration and mining operations; and the other risk factors discussed in greater detail in the Company's various filings on SEDAR (www.sedar.com) with Canadian securities regulators.

Neither the TSX nor its regulation services provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy and accuracy of this press release.

Contact Information

  • Prospero Silver Corp.
    William Murray
    Chairman
    604-288-7813