TORONTO, ONTARIO--(Marketwire - Oct. 18, 2012) - Soltoro Ltd. (TSX VENTURE:SOL) holds a total of 6,847,000 common shares of Argentum Silver Corp. (TSX VENTURE:ASL) and is completing the transfer of 100% of the mining rights to the Coyote property to Argentum Silver Corp. Upon transfer, Soltoro will retain a 3% Net Smelter Return ("N.S.R.") interest in Coyote whereby 1% can be purchased by Argentum Silver for US$1.5 million to a maximum of 2%.
Soltoro participates in discoveries and advancements at Coyote through its ~15% equity holding in Argentum Silver and its retained 3% N.S.R. royalty interest in the Coyote property.
Argentum Silver recently completed a Phase II step-out diamond drill hole program at the Coyote silver project in Jalisco. Mexico. The Phase II drill program comprised 17 diamond drill holes where a total of 2,164 metres was completed in order to establish a third dimension and test the resource potential of the El Tajo and La Colorada historic mine areas. To date, Argentum Silver has drill tested the El Tajo high-grade silver vein system over a 600 metre strike length. The results reported below targeted the El Tajo vein on a 50 metre drill center pattern. The El Tajo vein was intercepted at depths ranging from 50 to 120 metres vertically below surface. A shallower vein in the hanging wall or Upper vein was intersected while targeting the El Tajo vein.
Results from the first three step-out drill holes testing in the El Tajo mine area are as follows:
|Upper El Tajo
|Upper El Tajo
|1 True widths are estimated to be roughly 70% of drill intercept length.
|2 AgEQ=Silver Equivalent based on a gold price of US$1756.1/oz and a silver price of US$33.63/oz.
Andrew Thomson, President of Soltoro Ltd. stated, "Argentum Silver's drilling at Coyote is quickly moving towards establishing a small high-grade silver resource where mineralization appears to be getting wider at depth along certain sections. Further step-out holes are warranted to define the extent of the mineralization to depth and the system remains open to the north-east and south-west."
In total, the Phase II drill program comprised seventeen core holes totaling 2,164 metres. The remaining holes awaiting assay results include 11 more holes on the El Tajo vein and three scout holes on the La Colorada mineralized zone, which will be reported when received. Collectively, in the Phase I and II drill programs, the El Tajo and La Colorada veins have been traced for over a 1,100 metre strike length at surface.
The 1,053-hectare Coyote property contains dozens of individual low sulfidation epithermal silver-gold veins and stockwork zones. Most of the mineralization occurs within seven zones within an area of approximately 1.5 by 2.6 kilometres. Vein widths typically range from 1 to over 5 metres. Zones of stockwork have locally been mapped on surface over widths exceeding 35 metres. The Coyote project is located near the town of Chilicayote, within the state of Jalisco, Mexico. Road access and infrastructure are excellent. The property is approximately 150 linear kilometres southwest of Guadalajara, roughly a 3 1/2 hour drive. Topography is generally gentle to moderate. A regional electrical power line crosses the property.
Assaying from this program was completed by ALS Chemex through their office in Guadalajara, Mexico. Analytical procedures include a 33 element ICP-AES analysis (ME-ICP61m) and a 50 g FA AA finish for gold (AA-24). Silver assays exceeding 100 g/t are re-assayed by HCL leach with an ICP-AES or AAS finish (OG62). Paul Cowley, P.Geo. and the Argentum Silver's Senior Geological Consultant and Advisor and a Qualified Person under NI 43-101 has designed and supervised the program, and reviewed and approved the technical contents of this press release. Mr. Steven T. Priesmeyer, C.P.G., Vice President of Exploration for Soltoro Ltd. and a qualified person as defined by NI 43-101 has reviewed and approved the text of this press release.
About Argentum Silver:
Argentum Silver has satisfied all of the requirements to earn a 100% interest in the Coyote and Victoria properties as per an option agreement signed in 2011 with Soltoro. Soltoro is in the process of transferring these properties to Argentum Silver. Upon transfer of the properties, Soltoro will retain a 3% N.S.R. royalty interest in each project whereby 1% can be purchased by Argentum Silver for US$1.5 million to a maximum of 2% for each project. Argentum Silver also owns a 100% interest in the Lachiguiri and Silacayoapan properties, located in Oaxaca, Mexico. Soltoro participates in discoveries and developments on all of Argentum Silver's properties through the 6,847,000 shares it holds in Argentum Silver which also provides Soltoro shareholders with greater exposure to developments in southern Mexico.
Soltoro is engaged in exploration for bulk tonnage gold and silver deposits in Mexico. Soltoro holds an interest in an excess of 55,000 hectares of ground in Jalisco State. Soltoro is focused on expanding silver resources at the El Rayo silver project while seeking partners to advance the balance of its projects. Soltoro holds 14.9% of the common shares of Argentum Silver Corp. and a 3% N.S.R. payable to Soltoro on the Victoria and Coyote properties. Soltoro's La Tortuga project has been optioned to Gold Reserve Inc. Soltoro has 59,408,037 shares outstanding and trades on the TSX Venture Exchange under the symbol SOL. Coeur d'Alene Mines Corp. holds 4.5 million shares of Soltoro Ltd.
This communication to shareholders and the public contains certain forward-looking statements. Actual results may differ materially from those indicated by such statements. All statements, other than statements of historical fact, included herein, including, without limitations statements regarding future production, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.
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.