Rio Silver Inc. (TSX.V: RYO) is planning to fast-track exploration at its newly acquired Palta Dorada Au-Ag-Cu property in Northern Peru.
In announcing the acquisition of the property, which contains several high-grade gold-silver veins, also revealed it has signed a joint exploration Memorandum of Understanding (MOU) with Peruvian Metals Corp which will feature a detailed sampling and mapping programme along with a bulk sampling campaign and processing the mineral at Peruvian Metals’ 80% owned Aguila Norte Processing Plant.
Palta Dorada is located in the Ancash Mining Department in Northern Peru and covers an area of approximately 1200 hectares. The Property is accessible from the Plant by approximately 180 km of mainly paved roadway.
Chris Verrico, CEO of Rio Silver said the MOU establishes a joint effort to explore and develop the property. Any sales from metal concentrates produced from the bulk sampling activity and all operational expenses will be shared between companies. Peruvian Metals’ 80% owned Plant will charge the joint effort commercial mineral processing rates on a similar basis to its other clients for processing the bulk samples.
“We are very pleased to have accomplished these milestones, leveraging our joint resources and working together,” Mr Verrico said.
“The Palta Dorada property has several high-grade Au-Ag-Cu veins ready to be bulk sampled and processed at the Aguila Norte Plant. Oxide gold material can also be bulk sampled and treated at a number toll mills.
“Initial development and exploration will consist of drifting along the sulphide veins in this prominent structure, potentially identifying a minable resource which would only enhance our ability to explore our flagship Niñobamba project in a timely manner.”
Under the MoU Peruvian Metals will also have the option to earn a 50% ownership in the property. Equal ownership will occur once Peruvian Metals has matched Rio Silver’s acquisition price of the project of US$250,000 by assuming all capital and exploration expenditures.
The previous owner completed extensive production ready access to several levels for exploration and bulk sampling, as well as limited small-scale bulk sampling in several adits and shafts.
The main working is a 53m shaft where miners hoisted mineral to the surface. Eight chip samples have been taken from quartz veins containing sulphides in the shaft at various depths.
Results from these samples range from 3.06 g/t Au to 24.1 g/t Au, 36 g/t Ag to 865 g/t Ag and 0.22% Cu to 4.94% Cu over an average width of 60cm. The weighted average of the quartz-sulphide vein is 9.61 g/t Au, 256 g/t Ag and 1.42% Cu over the 60cm.
Peruvian Metals will act as the operator of the joint effort and will be responsible to obtain all the permits necessary to explore and extract a bulk sample and expects no permitting issues. An experienced underground contractor has agreed to start the mobilisation of the compressors and equipment to the site to extract the bulk sample.
Bulk sampling and exploration is expected to commence in the first quarter of 2020.