Vancouver, British Columbia--(Newsfile Corp. - March 14, 2018) - Prospero Silver Corp (TSXV: PSL) (the "Company" or "Prospero") is pleased to announce that a limited 3-hole drill program at the Pachuca SE project close to the historic mining city of Pachua in Hidalgo State, Mexico, has discovered a new gold and silver-bearing epithermal vein system. Drilling of the Pachuca targets completes the third of three initial projects funded by Fortuna Silver in early stage "proof of concept" programs. Under the terms of a strategic investment from Fortuna Silver Mines Inc (NYSE: FSM, TSX: FVI) made in May 2017, phase one funding of $1,500,000 was applied of which 80% was to be allocated to drilling and 20% to new project generation. Prospero was the operator of all three drill projects. At Pachuca, an 1,800m drill program tested 3 targets with deep, angled holes. Drill collar maps and draft sections for the Pachuca drill holes are available on Prospero's website at: http://www.prosperosilver.com/s/Pachuca-SE.asp. The results published here are from initial priority assays. Additional samples are being processed for interesting zones in all three holes.
Tawn Albinson, the President of Prospero said: "Although the current drill program is limited to 3 holes, we've cut new vein systems within 25km of one of the world's great silver-gold districts, the Pachuca-Real Del Monte system, which produced over 1.2-billion ounces of silver. We have at least 6-7km of linear, structurally-controlled alteration at surface on our concession so hitting multi-ounce and multi-gram silver and gold grades with the first 2 holes is exciting. The intercepts, which include 1.35m @ 227 Ag between 147.4m and 148.8m in hole 1, demonstrate that the negligible Ag and Au anomalies we noted in the surface alteration are related to a potentially significant epithermal vein system at depth. For example, the main vein structure in hole 2 is over 12m thick down hole; probably 8-10m true thickness, carries 0.39 ppm Au and 33 ppm Ag, and the third intercept which is 0.75 meters in width carries 6.4 ppm Au and 75 ppm Ag."
The 7,256 hectare Pachuca SE concession is 24km SE of the city of Pachuca, Hidalgo. Infrastructure is excellent. Major power lines and the Pachuca-Tulancingo freeway cross the middle of the property. Pachuca SE is on strike from the Pachuca-Real del Monte epithermal vein camp, one of the world's largest epithermal precious metal deposits and the local geology is typical of a high-level epithermal environment. The concession covers multiple kilometres of structurally controlled alteration at surface which Prospero's team believe is the surface expression of blind low-sulfidation epithermal-style veining.
Hole 1, was drilled to a total downhole depth of 453.9m from north to south across a structure in a small pit that's being mined for clay. The hole intersected an argillic alteration zone from 141.5m to 164.5m associated with fault gouge and breccia zones, with moderate to strong argillic alteration and quartz veinlets, and 0.5% to 1.0% disseminated pyrite. This zone returned 1.35m @ 227 Ag between 147.4m and 148.8m. The fault zone projects down from a fault noted at surface in a small pit previously mined for clay. A zone between 161.5m to 162.3m (0.8m) returned 16.9 ppm Ag, and from 210.75m a 1.05m interval runs 23.8 ppm Ag.
A second argillic alteration zone was intersected from 220.5m to 239.7m, also associated with gouge fault zones, moderate to weak patches of silicification, and disseminated pyrite locally up to 5%. This second zone projects vertically with the fault zone at surface which outcrops in the clay pit.
Surface geochemistry of the fault zone and quartz veinlets in the footwall dacites is negligible in the pit zone, where all selected samples ran less than 1 ppm Ag. The significant increase in silver grades within the argillic alteration cap at depths of less than 200 vertical meters from surface suggest proximity to the top of potential mineralized veins at depth.
This hole was drilled to test the El Varal target. It was collared at a dip of -51º, azimuth 175º although the angle shallowed considerably to roughly -35 º by the end of the hole. The hole cut strongly altered felsic to intermediate volcanics for most of its 933m length, and intersected 3 zones of precious metal mineralization, which appear to correlate with the downdip continuation of structures seen at surface, as follows:
|From (m)||To (m)||Downhole Interval (m)*||Au ppm||Ag ppm|
*True thickness estimated at approximately 80% of the downhole interval
The most significant intercept is from approximately 657m to 671m downhole. Two veins were cut. The first graded 1ppm Au and 193ppm Ag over 50cm, from 657.2m, and contains visible argentite (?) grains in white epithermal quartz. The sulfide was tentatively identified using optical microscopy.
The second vein zone is over 12m long down hole from 660m, but is probably closer to 8-10m true thickness. Silver assays for this interval ranged from 6.4ppm to 90.6ppm over 1.2m, and gold ranged from 0.08ppm to 0.76ppm over 85cm. Although not economic, the grades are encouraging and demonstrate the presence of a precious metal bearing vein system.
The highest gold grades were encountered in a 75cm interval of silicified and brecciated dacite dyke with crystalline quartz and 1% pyrite, from 695.2m downhole which returned 6.4 ppm Au and 71.5ppm Ag.
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 news release. Mr. Albinson is a Member of the American Institute of Professional Geologists and a Certified Professional Geologist (CPG) No. 11368.
About Fortuna Silver Mines Inc.
Fortuna is a growth-oriented, precious metals producer focused on mining opportunities in Latin America. The company's primary assets are the Caylloma silver mine in southern Peru, the San Jose silver-gold mine in Mexico and the fully-permitted Lindero gold project in Argentina.
About Prospero Silver Corp.
Prospero is a Mexico-focused project generator listed on the TSX.V under the symbol PSL.V. Prospero's aim is to discover world-class precious metal projects in the major mineral belts of Mexico. The Company applies a unique blend of practical exploration experience, cutting-edge mineral deposit science, and an extensive knowledge of Mexico's geology to find new gold and silver systems. Our exploration programs are run by a small but highly-focused geological team based in Mexico.
For further information please contact:
Exec VP Business Development
Tel: 604 307 0055
Tel: 604 288 2553
Forward-Looking Statement Cautions:
This press release contains certain "forward-looking statements" within the meaning of Canadian securities legislation, relating to, among other things, the Company's drill results. 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. The Company cautions that Forward-looking statements 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. Except to the extent required by applicable securities laws and the policies of the TSX Venture Exchange, the Company undertakes no obligation to update these forward-looking statements if management's beliefs, estimates or opinions, or other factors, should change. Factors that could cause future results to differ materially from those anticipated in these forward-looking statements include, possible, accidents and other risks associated with mineral exploration operations, the risk that the Company will encounter unanticipated geological factors, the possibility that the Company may not be able to secure permitting and other governmental clearances necessary to carry out the Company's exploration plans, the risk that the Company will not be able to raise the additional funds in the future to continue to carry out its business plans, and the risk of political uncertainties and regulatory or legal changes that might interfere with the Company's business and prospects. The reader is urged to refer to the Company's reports, publicly available through the Canadian Securities Administrators' System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com for a more complete discussion of such risk factors and their potential effects.
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