Prospero Silver Corp.
TSX VENTURE : PSL

Prospero Silver Corp.

July 14, 2011 08:17 ET

Prospero Silver Z-TEM Survey Identifies Multiple, Large Targets at Campana Project, Mexico

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 14, 2011) - Prospero Silver Corp. (TSX VENTURE:PSL) ("Prospero" or the "Company") announced today the results of a Z-TEM (z-Axis Tipper Electromagnetic System) and magnetic helicopter airborne geophysical survey recently completed at its Campana and San Luis del Cordero projects in central Durango State, Mexico. The survey, which covered 192 square kilometres, revealed three large high-resistivity anomalies and several minor anomalies at the Campana Project. These will be immediately followed up using an Induced Polarization (IP) ground survey to determine the existence of disseminated sulfides as targets for drilling, which Prospero expects to begin in late summer.

The most striking and largest of the anomalies occurs in the vicinity of Campana 1 Hill in the SE quadrant of the surveyed area and appears as a deep blue circular feature, measuring 2 x 1.5 kilometers (see Figure 1). 2-D inversions of this anomaly show it extending in pipe-like fashion with steep walls to depths over 1,200 meters from surface (Figure 2). Diamond drilling carried out in 2007 by Esperanza Silver Corp. on the NW edge of this anomaly showed disseminated low grade precious metal and base metal mineralization associated with a diatreme dike breccia complex. This combination is commonly referred to as "Peñasquito style" mineralization, given its similar polymetallic signature to the well-known Peñasquito deposit in Zacatecas State, Mexico.

Other elevated resistivity anomalies identified by the Z-TEM survey include:

  • A second, circular anomaly lying immediately to the south of the largest anomaly, measuring 1 x 1 kilometer,
  • A very large zone of high resistivity measuring 1.5 kilometers wide and several kilometers long, located at the southern margin of a large, deep magnetic anomaly,
  • Several other circular resistivity highs with smaller dimensions (under 400 meters) between Campana 1 and Campana 2 hills,
  • This suggests other mineralized targets may occur in the 7 kilometer north-south corridor between the two hills.

"The results of this survey exceeded our expectations," said Tawn Albinson, Prospero Silver President and head of exploration. "Given that the 2007 drilling evidenced that the style of mineralization we seek exists on the property, we are eager to further refine our understanding with IP and begin choosing drill targets." Albinson further commented, "A ground-based Magnetic Tellurics survey carried out in 2004 demonstrated that the altered and mineralized zones drilled in 2007 displayed a strong resistivity response, which we felt would be detected by the Z-TEM technology."

The Company will immediately conduct a 30-day IP survey (48.1 line-kilometres distributed in 21 lines) over the zones shown in Figure 1. The highest density of IP lines will focus on the two large circular high resistivity anomalies in the southeast quadrant. The objective of the IP survey is to detect chargeability responses (i.e. the presence of disseminated sulfides) which can be considered targets for reverse circulation and diamond drilling programs.

The presence of a distal style of disseminated low grade precious metal and base metal mineralization associated with a diatreme dike breccia complex at Campana 1 Hill (as described on the Company´s website) provides substantial evidence of Peñasquito style mineralization in a peripheral position to the largest circular resistivity high defined by the Z-TEM survey. This provides strong encouragement to carry out the district-wide IP survey outlined in Figure 1.

The Z-TEM method of data collection is propriety technology owned by Geotech Ltd. of Ontario and is widely used in Mexico. Z-TEM surveys can map structure, bedrock geology and alteration from surface up to 1,500 meters in depth. This survey included 1,048 line-kilometres over the alluvium covered valley between Campana and Cordero. The Company´s consultant, Condor Consulting Ltd. of Lakewood, Colorado performed data processing and interpretation.

Condor also processed the airborne magnetic data. There is a large and broad magnetic high measuring 7 x 3 kilometers, oriented northeast, under the valley to the west of the Campana 1 and Campana 2 hills. Modelling of this magnetic high indicates it could correspond to a deep intrusive body. The outline of the intrusive is shown in Figure 1.

Tawn Albinson, M.Sc., the 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 (Fumarola). Prospero's objective is to quickly evaluate the properties currently optioned for their suitability to provide size potential and/or amenability for early production.

Forward-Looking Statement Cautions:

This news release contains certain "forward-looking statements" within the meaning of Canadian securities legislation, relating to the closing of a non-brokered Private Placement. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are statements that are not historical facts; they are generally, but not always, identified by the words "expects," "plans," "anticipates," "believes," "intends," "estimates," "projects," "aims," "potential," "goal," "objective," "prospective," and similar expressions, or that events or conditions "will," "would," "may," "can," "could" or "should" occur, or are those statements, which, by their nature, refer to future events. Factors that could cause actual results to differ materially from these forward looking statements include, but are not limited to, variations in the nature, quality and quantity of any mineral deposits that may be located, the Company's inability to obtain any necessary permits, consents or authorizations required for its planned activities, and the Company's inability to raise the necessary capital or to be fully able to implement its business strategies. The reader is referred to the Company's reports, publicly available through the Canadian Securities Administrators' System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com, including the risk factors discussed in Prospero's November 27, 2009 prospectus. Except as required by securities laws and the policies of the TSX Venture Exchange, Prospero disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

To view the figures associated with this press release, please visit the following link: http://media3.marketwire.com/docs/psc_fg1fg2_714.pdf

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.

Contact Information

  • Contact Financial
    Peter Murray
    604-689-7422