Vancouver, BC, March 5, 2021 /CNW/ – Denarius Silver Corp. (“Denarius Silver” or the “Company“) (TSXV: DSLV), is pleased to announce its common shares will commence trading on the TSX Venture Exchange on March 8, 2021 under the symbol “DSLV”.
- Mining portfolio with exposure ranging from exploration to near-term production of multi-metal assets offering leverage across multiple markets.
- Lomero-Poyatos, to be acquired by the Company, is a polymetallic deposit located on the Spanish side of the prolific copper rich Iberian Pyrite belt with a historical inferred resource of 22.17 MT of 3.08 g/t gold, 62.38 g/t silver, 0.90% copper, 0.85% lead and 3.05% zinc that remains open at depth and along strike. A qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves, and the Company is not treating the historical estimate as current mineral resources or mineral reserves.
- In connection with the acquisition of the Lomero Project, the Company is completing a non-brokered private placement financing (the “Concurrent Financing“) to raise up to $33.75 million through the issuance of up to 75,000,000 subscription receipts of the Company at a price of $0.45 per subscription receipt. The Concurrent Financing has been fully-subscribed and is expected to be completed shortly. Part of the commission will be paid in units.
- Guia Antigua Project, a past silver producer adjacent to Gran Colombia Gold’s flagship Segovia mine (TSX: GCM), has previously produced over 78,000 oz of silver at an average grade of 404 g/t silver.
- Zancudo Project, a past gold-silver mine, previously produced over 1.5 million oz of gold at an average grade of 14.6 g/t gold and 108 g/t silver, acquired from Gran Colombia Gold and currently under option to IAMGOLD (TSX: IMG).
- Projects within close proximity to producing operations with robust infrastructure in place to help quickly advance projects.
- Exploration programs conducted by prior ownership on all three projects have returned high grade mineralization consistent with the rich history of the properties as well as the prolific neighboring deposits.
- Strong cash position and management with a track record of shareholder wealth creation via exploration, development and mining.
- Strong shareholder base 36% owned by Gran Colombia Gold (TSX: GCM).
The Company has entered into a binding letter agreement with Qvartz Capital Partners Inc. as assignor and the shareholders of Transcontinental Gold Mines Pty Ltd., in order to acquire a 100% interest in Investigation Permit Nº 14,977 covering the areas occupied by the former Lomero-Poyatos Concessions and the mine within them in southern Spain (the “Lomero Project“).
Investigation Permit Nº 14,977 comprises 15 graticular blocks totalling approximately 454 hectares within the adjoining Municipalities of El Cerro del Andevalo and Cortegana within the Huelva Province of the Autonomous Community of Andalucía in southern Spain. The area covered by the Permit is located approximately 85 km north-west of Seville and 60 km north-east of the port of Huelva and includes the area previously occupied by 13 mining concessions including the former Lomero-Poyatos Mine. The Rubia Permit is an Investigative Mining Permit of approximately 454 hectares covering the Lomero-Poyatos Project which is a polymetallic deposit located in the Huelva Province in Southern Spain, within the Iberian Pyrite Belt which is one of the largest districts of pyrite-rich massive sulphide deposits in the world.
The project deposit site is well serviced by water, power, paved highways, port access and is also positioned in close proximity to the Matsa JV project which has processing facilities with the capacity to process 4.4M tons of copper and polymetallic ore annually. Exploration conducted by prior ownership indicates a historical inferred resource of 22.17 Mt of 3.08 g/t gold, 62.38 g/t silver, 0.90% copper, 0.85% lead and 3.05% zinc. The mineral resource is reported within a >25% S mineral envelope at a cut-off grade of 1.0 g/t Au for an underground mining scenario. The mineral resource estimate was reported in a NI 43-101 technical report by Behre Dolbear with effective date of 2011. A qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves, and the Company is not treating the historical estimate as current mineral resources or mineral reserves. The Lomero-Poyatos (Rubia Permit) deposit remains open at depth and along strike and SRK has been contracted to design an exploration program to confirm the inferred resource base and further explore the potential at Lomero-Poyatos (Rubia Permit).
Acquisition of the Lomero Project remains subject to the negotiation of definitive documentation, completion of the Concurrent Financing and the approval of the TSX Venture Exchange. For further information concerning the acquisition, readers are encouraged to review the news release issued by the Company on February 25, 2021.
The Guia Antigua Project encompasses the exploration, development and mining rights to a 386-hectare area located in the eastern part of Gran Colombia’s Segovia mining title focused on the Guía Antigua vein which falls outside the areas associated with Gran Colombia’s mining operations and exploration activities. The Guia Antigua Project is located 130 kilometers northeast of Medellin (227 kilometers by road) in the Segovia-Remedios mining district, Department of Antioquia, north-western Colombia and is about five kilometers east of the town and mining centre of Segovia.
The Guia Antigua Project includes the historic silver-gold producing Guia Antigua Mine. Artisanal miner development work on two levels over a 150 meter strike length define the historical Guia Antigua Mine. There has been no mechanized mining of the Guia Antigua vein. The Guia Antigua Mine was operated by an unknown company prior to 2014 and by Sociedad Guias Gold, a private company, under contract with Gran Colombia from October 2014 through October 2016. Recorded production was 6,034 metric tons of ore with an average head grade of 404.90 g/t silver and 6.05 g/t gold containing 78,558 ounces of silver and 1,173 ounces of gold, with a silver-gold ratio of 67. The prior production is not known and there has been no additional production since 2016.
The Guía Antigua vein is a high-grade silver-gold vein which is oriented sub-parallel to an aphanitic dyke hanging wall and highly weathered foliated metamorphic footwall within the Upper Jurassic Segovia Batholith. There is a systematic increase in the silver grade and the silver-gold ratio from west to east in the Segovia mining title. From 2014 to 2016, Sociedad Guias Gold carried out systematic channel sampling of the Guia Antigua Mine. A short drill program of 1,753.9 m was carried out in 2018-19.
The Zancudo Project consists of a 1,052-hectare mining concession area located in the Titiribi mining district in Antioquia, Colombia, about 27 kilometers southwest of Medellin. Zancudo comprises a historical gold mine (the Independencia Mine) located in the Middle Cauca Gold Belt. The estimated total historical production dating back to 1793 is 1.5 to 2.0 Mozs of gold equivalent with recovered grades of 14.6 g/t Au and 108 g/t Ag. The Independencia Mine exploited an epithermal intermediate sulphidation type vein system over 3.5 kilometers strike length and to a depth of approximately 300 meters.
Gran Colombia acquired Zancudo in 2010 and completed a 14,000 meter drilling program in 2011 and 2012. In March 2017, Gran Colombia signed an option agreement with IAMGOLD Corp. (“IAMGOLD“) for the exploration and potential purchase of an interest by IAMGOLD in Zancudo. Under the agreement, IAMGOLD has been granted an option to acquire an initial undivided 65% interest (the “First Option“) in Zancudo by incurring an aggregate of US$10 million of mineral exploration expenditures over a six-year period, subject to meeting specified annual work commitments during this period. From 2017 through 2019, IAMGOLD completed a total of approximately 16,224 meters of drilling at Zancudo and has incurred over US$4 million of its exploration commitment. However, due to COVID-19, IAMGOLD suspended its drilling program in 2020. IAMGOLD has also been granted an additional option (the “Second Option“) to acquire a further 5% undivided interest, for an aggregate 70% undivided interest in Zancudo, by completing a feasibility study within three years after exercising the First Option. Upon exercise of the First Option or the Second Option, as the case may be, the parties will form a joint venture to hold Zancudo, to advance the exploration and, if feasible, to advance the development and mining of any commercially exploitable ore body.
In conjunction with its exploration campaign, IAMGOLD has implemented a number of ESG initiatives in the local community at Zancudo, including a beekeeping project focused on providing training to local beekeepers, improving efficiency in honey production and marketing support.
As at listing, Denarius Silver has 93,117,915 common shares issued and outstanding, along with 2,375,250 common share purchase warrants warrants and 9,200,000 incentive stock options.
Denarius Silver is led by an experienced team of mining professionals including:
- Serafino Iacono, Executive Chairman
- Frederic Leigh, CEO and Director
- Mike Davies, CFO
- Jeff Couch, Director
- Lombardo Paredes-Arenas, Director
- Paul Sparkes, Director
Qualified Person Review
The technical information in this news release has been reviewed and approved by Stewart Redwood, BSc (Hons), PhD, FIMMM, FGS, a “Qualified Person” as defined under National Instrument 43-101.
On Behalf of the Board of Directors,
DENARIUS SILVER CORP.
Neither 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.
Statements included in this announcement, including statements concerning our plans, intentions and expectations, which are not historical in nature are intended to be, and are hereby identified as, “forward–looking statements”. Forward–looking statements may be identified by words including “anticipates”, “believes”, “intends”, “estimates”, “expects” and similar expressions. The Company cautions readers that forward–looking statements, including without limitation those relating to the Company’s future operations and business prospects, are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward–looking statements. The Company is not treating the historical estimate of inferred resources mentioned in this press release as current mineral resources or mineral reserves. Inferred resources have a great amount of uncertainty as to their existence, and as to their economic and legal feasibility. Estimates of inferred resources may not form the basis of feasibility or other economic studies.
SOURCE Denarius Silver Corp.
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