Silver Dollar Completes Compilation and Reinterpretation of Historical Exploration Data on the La Joya Silver Project in Durango, Mexico
FOR IMMEDIATE RELEASE
Silver Dollar Completes Compilation and
Reinterpretation of Historical Exploration Data on the
La Joya Silver Project in Durango, Mexico
Several new areas identified for follow up that demonstrate potential to host
additional high-grade mineralization
VANCOUVER, BC – February 2, 2021 – Silver Dollar Resources Inc. (CSE: SLV) (OTCQB:
SLVDF) (“Silver Dollar” or the “Company”) is pleased to provide an overview of the results
from the compilation and reinterpretation of all historical exp loration data on the La Joya Silver
property (the “Property”) located in Durango, Mexico (click here to see a video on the Property).
Highlights from database studies performed by technical advisors Tetra Tech Inc. include:
Newly identified areas demonstrate the potential to host additional high-grade
mineralization.
Skarn hosted mineralization has similarities to a recent discovery in the area.
Fault kinematic study highlights additional targets.
Additional untested geophysical targets identified.
Geochemical assessment of historical drilling data expands mineralization understanding.
New 3D geological and mineralization model generation.
In advance of restarting drilling and exploration activities on the Property, Silver Dollar requested
that Tetra Tech conduct comprehensive desktop studies of La Joy a’s extensive historical database
to identify additional areas of opportunity that exist on the P roperty. These studies included a
detailed review of historical geophysical, geochemical, and regional exploration data, and detailed
comparisons to nearby properties. Silver Dollar is pleased to report these studies have successfully
identified several new highly prospective regions with the pote ntial to host additional high-grade
mineralization at La Joya. Findings of the various studies are summarized below:
La Joya Mineralization
The skarn hosted mineralization at La Joya has geological and mineralization similarities to a major
d i s c o v e r y P a n A m e r i c a n S i l v e r C o r p . r e p o r t e d l a s t y e a r t h a t i s located east of the current La
Colorada mine workings (see their news release of August 4, 2020).
The geological similarities between the recent discovery at La Colorada and the La Joya property
include:
La Joya is comprised of epithermal veins and mantos style (flat-lying layers) mineralization,
which progresses into a garnet-pyroxene skarn, magmatic-hydrothermal breccia, proximal
skarn, and an apparent overprinted Cu-Mo porphyry signature, which is nearly identical to
the geology, alteration, and mineralization observed at La Colorada.
Mineralization at La Joya is hosted in an extensive network of structural veins, similar to
those discovered at La Colorada.
La Joya may represent a stratigraphic analogue of La Colorada.
Figure 1: La Joya Silver Property location and area mines.
Fault Kinematic Study Highlights Additional Targets
An in-depth review of historical geophysics allowed for a more detailed interpretation of regional
faults. These regional faults were not considered during the pr evious modelling in 2012 and have
provided more in-depth insights into where the La Joya deposit sits in a regional structural geology
sense. This study has allowed the deposit's structural corridor s to be better constrained and has
identified a NE-SW trending controlling fault system that is a new target for mineralization. The
analysis further highlighted the extensive local scale faulting that served as the conduit for the
observed mineralization at the site. Additional structures have been identified onsite, which remain
untested and represent additional high priority exploration targets.
Figure 2: Faults are coloured based on projection from the magnetic and gravity datasets.
Additional Untested Geophysical Targets Identified
A detailed review of the historical geophysical database discov ered high-quality electromagnetic
(EM) and induced polarization (IP) data. When the data was compared against the historical drilling
database, multiple EM conductors were identified which have not been historically tested and
represent significant exploration targets. A substantial gravity anomaly has also been identified to
the south of the current extent of drilling the La Joya property. The source of this gravity anomaly
remains unexplained and it will be the focus of additional work moving forward.
Geochemical Assessment of Historical Drilling Data Expands Mineralization Understanding
Tetra Tech undertook a detailed review of the historical drilling and assay database using Reflex’s
ioGASTM software, an advanced software that utilizes a wide range of q uantitative tools to gain
additional insight into the database. The ioGAS study identified the subtle geochemical signatures
of the numerous geological units onsite to allow for more accur ate modelling and spatial
relationships. The geochemical modelling also successfully defined a unique “chemical signature”
of the mineralization hosting ma ntos units. These unique mantos signatures were then used in
Seequent Leapfrog Geo 3D software to re-constrain and model the sub-horizontal mantos
previously identified and modelled.
The historical 2013 Preliminary Economic Assessment (PEA) completed by previous operators did
not utilize this advanced geoche mical signature analysis techni que during previous modeling
efforts. As such, the assessment of the drill data in ioGAS pro vided Tetra Tech a secondary, and
updated check on the interpretations and models developed for the historical PEA.
New 3D Geological and Mineralization Model Generation
An updated geological and mineralization model was generated us ing Leapfrog Geo 3D to create
a detailed geologic model that can be used in supporting future resource studies and developing
high priority drill targets for exploration campaigns. This wor k synthesized the extensive
geochemical, structural, and geophysical studies into a more comprehensive model. Additionally,
through the aid of the ioGAS studies, the geological database underwent re-interpretation allowing
for more accurate modelling of t he geological units present on site and the remodeling of
mineralization. As a result, the updated model was able to identify the following:
Mineralized mantos units appear to be more continuous than previously modelled.
Higher grade mineralization appear s to correlate to where the m antos intersects specific
structures.
High-grade structural oreshoot potential identified, which have yet to be drill tested and
represent a high priority target.
High-grade mineralization within t he skarn also appears to be a ssociated with local
inflections (possible fault offsets) of the underlying intrusio n. These inflections have not
entirely been drill tested and represent additional high-grade mineralization potential.
Figure 3: Mantos grade models in plan view. Zones remain open in all directions.
Figure 4: Mantos grade models in cross-sectional view. Zones remain open in all directions.
“We believe La Joya is a sleeping giant as this comprehensive g eological exercise has given us a
fresh perspective on the explora tion potential of the Property, ” said Mike Romanik president of
Silver Dollar. “The desktop stud ies using the latest exploratio n software have identified several
new untested targets that we are in the process of prioritizing for follow up this year.”
About the La Joya Project:
Silver Dollar has an exclusive right to acquire up to a 100% in terest in the La Joya property (the
“Property”). Under the terms of the definitive agreement between Silver Dollar and First Majestic
(see news release of August 10, 2020), Silver Dollar has been granted an exclusive option to acquire
an initial 80-per-cent interest and, if exercised, a second option to acquire an additional 20-per-cent
interest for an aggregate 100-per-cent interest in the Property . Located in the southeastern portion
of Durango State in the Mexican Silver Belt, the Property consi sts of 15 mineral concessions
totalling 4,646 hectares and hosts the main mineralized trend (MMT), Santo Nino and Coloradito
deposits.
First Majestic acquired the Property as part of its acquisition of SilverCrest Mines Inc. (SilverCrest)
in 2015. A total of 182 historical drill holes, totalling ~51,600 metres (m), have been completed on
the property to date. This includes 125 holes, totalling ~36,04 1 m, drilled by SilverCrest between
2010 and 2014. In 2012, a historical inferred mineral resource estimate for silver-copper-gold (Ag-
Cu-Au) and for tungsten-molybdenum (W-Mo) mineralization was calculated from 78 SilverCrest
drill holes (25,812.65 m) and 11 validated historical drill holes (4,272.63 m). Silver Dollar has not
completed the necessary data verification and work required to update the historical mineral
resource estimate and does not rely upon it as being current.
The Property is situated approximately 75 kilometres directly s outheast of the state capital city of
Durango in a prolific mineralized region with past-producing and operating mines including Grupo
Mexico's San Martin Mine, Industrias Penoles's Sabinas Mine, Pan American Silver's La Colorada
Mine, and First Majestic's La Parrilla and Del Toro Silver Mine s. Access and infrastructure near
the property are considered excellent with a highway and power lines nearby.
Cam Norton, P.Geo., of Tetra Tech Canada Inc., is the independent “Qualified Person" as defined
in National Instrument 43-101, who has reviewed and approved the technical content in this press
release.
About Silver Dollar Resources Inc.
Silver Dollar Resources Inc. is a mineral exploration company f ocused on creating shareholder
value by finding and developing economic precious and base metal deposits. Having completed its
initial public offering in May 2020, the Company trades on the Canadian Securities Exchange under
the symbol "SLV" and on the OTCQB under “SLVDF”. Silver Dollar’s projects are located in two
of the prolific mining jurisdic tions in the world and include t he advanced exploration and
development stage La Joya Silver Project in Durango, Mexico, an d the discovery-stage Pakwash
Lake and the Longlegged Lake properties in the Red Lake Mining District of Ontario, Canada. The
Company has an aggressive growth strategy and is actively revie wing projects in mining-friendly
jurisdictions internationally for potential acquisition.
For additional information: contact investor relations, you can download our latest presentation
by clicking here and you can follow us on Twitter by clicking here.
Joseph Cullen,
Investor Relations Manager
Direct line: (778) 919-8615
Email: [email protected]
ON BEHALF OF THE BOARD
Signed “Michael Romanik”
Michael Romanik,
President, CEO & Director
Silver Dollar Resources Inc.
Suite 108 - 800 Kelly Road, Suite 416
Victoria, BC, V9B 6J9
Forward-Looking Statements:
This news release may contain “forward-looking statements” that involve known and unknown risks, uncertainties,
assumptions and other factors that may cause the actual results , performance or achievements of the Company to be
materially different from any future results, performance or achievements expressed or implied by the forward-looking
statements. Any forward-looking statement speaks only as of the date of this news release and, except as may be
required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking
statement, whether as a result of new information, future events or results or otherwise.