VANCOUVER, Sept. 6, 2019 /CNW/ - Rio Silver Inc. ("Rio
Silver" or the "Company") (TSX.V: RYO) is pleased to provide the
following update:
Dear Shareholders,
It is our pleasure, at this obvious juncture in the world's
capital marketplace, to provide an update on Rio Silver Inc. (our
"Company") and our objectives going forward.
It has been very difficult over the past several years for the
junior mining industry. As you know, traditional access to equity
capital markets for risk capital had all but disappeared. Renewed
strength in the price of gold and silver has attracted new interest
in our sector. As a junior exploration company, we depend on the
equity markets to finance our projects and we feel the timing is
now, to start aggressively exploring our Peruvian Flagship Property
"Niñobamba" and to seek new gold/silver projects. Over $10 million CDN has been spent on the Company's
property to date.
We feel that the Niñobamba property has the potential to become
a world-class discovery. The precious metal mineralization is
associated with an acid-sulfate or high sulphidation epithermal
system. These types of systems are the main exploration target of
major companies exploring for gold in the South American Andes.
More specifically precious metal mineralization at Barrick's
Pierina and Laguna Norte Gold Mines,
and Newmont's Yanacocha are all associated with high sulphidation
systems.
Niñobamba was considered by many to be a silver only project,
however we recognize that these systems are mineralogical-zoned and
therefore the Company has constructed a new conceptual model. This
new approach aided in discovering a gold zone that was unrecognized
by previous operators. An extensive surface trenching program that
commenced in 2012 produced very favourable results.
Our first trench was placed in the area where Anglogold drilled
an intercept of 130 metres of 2.8 oz/t Ag. The trench exposed
extensive high sulphidation alteration returning an impressive 56
metres averaging 1.03 g/t Au and 98.9 g/t Ag. Further trenching 400
meters southwest and along strike continued to expose typical vuggy
silica high sulphidation type alteration with the last 21 metres
returning 1.32 g/t gold and 102 g/t Ag. The extent of the
mineralization continues under deep colluvium. The last sample in
the trench returned 0.53 g/t Au and 82 g/t.
In 2016 we expanded the surface areas by acquiring three
adjacent concessions from Newmont. This acquisition included an
extensive database and selective drill core. The database included
assay results for over 6500 surface samples and assay results from
7880 metres of diamond drilling. Highlights from the drilling by
Newmont included 72 metres of 1.2 g/t Au on the Joramina Zone,
several kms distant from the Niñobamba mineralization. Over
$6.5 million US was spent on these
additional concessions by Newmont. Several highly anomalous silver
zones were located and remain untested by drilling. With a better
understanding of the precious metal zoning, more gold zones are
likely to be discovered.
Moving forward, our Company will continue the exploration at
Niñobamba by first re-establishing a good relationship with the
local community. Much surface work is still required to better
understand the results from the Newmont database. Permitting will
commence shortly, with drilling expected in 2020.
2019 will continue to present many challenges for the junior
mining industry. However, we feel that 2020 will be a rewarding
year for Rio Silver. While we intend
to recommence the exploration at Niñobamba, we continue to review
new opportunities.
Our Company has an experienced Peruvian crew and a distinct
competitive advantage of being able to generate and/or identify and
quickly assess unrecognized opportunities. We are well positioned
to take advantage of the world class exploration environment
offered by Peru and its wealth of
mineral opportunities. We will continue to identify new
value-generating initiatives for our Shareholders.
In addition the Company is pleased to announce it has moved its
corporate headquarters to Vancouver at 1600–595 Burrard St to better
align itself with present management, industry wide partners and
service providers, and in order to better serve shareholder
base.
I would like to express my sincere appreciation to my fellow
shareholders for their support over the years and look forward to
an exciting future for our Company.
On behalf of the Board of Directors
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
this release.
This news release includes forward-looking statements that
are subject to risks and uncertainties. All statements within,
other than statements of historical fact, are to be considered
forward looking. Although the Company believes the expectations
expressed in such forward-looking statements are based on
reasonable assumptions, such statements are not a guarantee of
future performance and actual results or developments may differ
materially from those in forward-looking statements. Factors that
could cause actual results to differ materially from those in
forward-looking statements include market prices, exploitation and
exploration successes, continued availability of capital and
financing, and general economic, market or business conditions.
There can be no assurances that such statements will prove accurate
and, therefore, readers are advised to rely on their own evaluation
of such uncertainties. We do not assume any obligation to update
any forward-looking statements except as required by applicable
laws.
SOURCE Rio Silver
