AbraSilver Announces that Rio Tinto has Commenced Drilling at the Arcas Copper-Gold Project in Chile
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AbraSilver Announces that Rio Tinto has Commenced Drilling at the Arcas Copper-Gold
Project in Chile
Toronto – September 21, 2021: AbraSilver Resource Corp. (TSX.V:ABRA; OTCQX: ABBRF)
("AbraSilver" or the “Company”) is pleased to announce that Rio Tinto Mining and Exploration Limited
(“Rio Tinto”) has commenced drilling at the Company’s Arcas copper-gold project (“Arcas” or the
“Project”), located in Chile.
The Company’s wholly-owned Arcas project is subject to an earn-in with an option to joint venture
agreement, whereby Rio Tinto may acquire up to a 75% stake in Arcas by incurring up to US$25 million
in exploration expenditures. The initial exploration program is expected to consist of approximately 2,000
metres of reverse circulation drilling in five holes.
John Miniotis, President and CEO of AbraSilver, commented, “We are excited to have Rio Tinto
commence drilling activities at Arcas. Having partnered with Rio Tinto, one of the world’s largest and
most successful mining and exploration companies, provides a significant opportunity for AbraSilver to
unlock additional exploration value for shareholders, while we continue to focus on our Diablillos silver-
gold project and advancing our pipeline of exploration projects.”
Arcas Project Overview
The Arcas Project is located in the Antofagasta Region, 245 km northeast of Antofagasta city, a world
class mining hub. The Project is situated in the Atacama Desert, the cordilleran transitional zone between
lower desert and high cordillera, at elevations ranging between 1,500-3,800 meters. The Arcas
concession block constitutes a combined area of approximately 51,600 hectares and falls along the
greater West Fissure-Domeyko mineralized trend which hosts numerous world-class porphyry copper
deposits (e.g. Chuquicamata, Collahuasi, El Abra, and Quebrada Blanca). Despite being located
adjacent a major mineral belt, the Arcas Project has, to date, had little modern exploration and remains
in a preliminary stage of exploration.
On September 11, 2019, the Company’s wholly-owned subsidiary, Aethon Minerals Chile SpA (“Aethon”),
entered into an earn-in with an option to joint venture agreement (the “Agreement”), whereby Rio Tinto
may acquire up to a 75% stake in Arcas by incurring US$25 million in exploration expenditures. A
summary of the key terms of the Agreement are as follows:
1st Option: If Rio Tinto incurs total project expenditures of US$4 million within 3 years, and makes
aggregate cash payments to Aethon of US$300,000 during the first two years (which have already
been paid), it will have the right to acquire a 51% interest in the Arcas project through the
acquisition of 51% stock of a new company (“Opco”) that will be incorporated;
2 nd Option: If Rio Tinto incurs additional project expenditures of US$5 million over the subsequent
2-year period, it will have a right to acquire an additional 14% interest in Opco (holder of the Arcas
project), resulting in its total interest being 65%; and
3 rd Option: If Rio Tinto incurs additional project expenditures of US$16 million over the
subsequent 3-year period, it will have a right to acquire an additional 10% interest in Opco (holder
of the Arcas project), resulting in its total interest being 75%.
Technical information in this news release has been approved by David O’Connor P.Geo., Chief
Geologist for AbraSilver, and a Qualified Person as defined by National Instrument 43-101 Standards of
Disclosure for Mineral Projects.
About AbraSilver
AbraSilver is a well-funded silver-gold focused advanced-stage exploration company. The Company is rapidly
advancing its 100%-owned Diablillos silver-gold project in the mining-friendly Salta province of Argentina, which
has a Measured and Indicated resource base of over 160Moz on a silver-equivalent basis or 2.3Moz on a gold-
equivalent basis. The Company is led by an experienced management team and has long-term supportive
shareholders including Mr. Eric Sprott and SSR Mining. In addition, AbraSilver owns a portfolio of earlier-stage
copper-gold projects, including the Arcas project in Chile where Rio Tinto has an option to earn up to a 75%
interest by funding up to US$25 million in exploration. AbraSilver is listed on the TSX-V under the symbol “ABRA”
and in the U.S. under the symbol “ABBRF”.
For further information please visit the AbraSilver Resource website at www.abrasilver.com, our LinkedIn page at
AbraSilver Resource Corp., and follow us on Twitter at www.twitter.com/abrasilver
Alternatively please contact:
John Miniotis, President and CEO
Tel: +1 416-306-8334
Cautionary Statements
This news release includes certain "forward-looking statements" under applicable Canadian securities legislation.
Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while
considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause
the actual results and future events to differ materially from those expressed or implied by such forward-looking
statements. All statements that address future plans, activities, events or developments that the Company believes,
expects or anticipates will or may occur are forward-looking information. There can be no assurance that such
statements will prove to be accurate, as actual results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking
statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise, except as required by law.
The Diablillos resource estimate is N.I. 43-101 compliant. Full details of the Mineral Resources are available in a
Company news release dated September 15, 2021. The full technical report, which is being prepared in accordance
with National Instrument 43-101 - Standards of Disclosure for Mineral Projects (“NI-43-101”) by Mining Plus, will be
available on SEDAR (www.sedar.com) under the Company’s issuer profile within 45 days of the news release dated
September 15, 2021.
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 news release