Argentum Secures the Cochavara Silver-Lead-Zinc Project in Northern Peru
Argentum Secures the Cochavara Silver-Lead-Zinc
Project in Northern Peru
Toronto, Ontario--(Newsfile Corp. - January 9, 2020) -
Argentum Silver Corporation (TSXV: ASL) ("
Argentum
" or the
"
Company
") is pleased to announce that the TSX Venture Exchange Inc. (the "
Exchange
") has accepted for filing an
amalgamation agreement between Argentum Silver Corp. and Norsemont II Resources Corp. ("
Norsemont
"), a private British
Columbia company, dated May 27, 2019 (the "
Agreement
"). Norsemont owns a 100% interest in the Cochavara Silver-Lead-
Zinc Project (the "
Cochavara Project
") in Northern Peru. Pursuant to the terms of the Agreement, Argentum will acquire all the
issued and outstanding securities of Norsemont in exchange for 2,777,778 common shares in the capital of Argentum. In
addition, holders of convertible securities of Norsemont will receive 400,000 common share purchase warrants of Argentum,
each warrant entitling the holder thereof to acquire a common share at an exercise price of $0.25 per common share on or
before the date that is three years following the closing of the proposed transaction. The completed amalgamation was a
related-party transaction with Sprott Mining Corp., a company controlled by Eric Sprott, as a control person of both Argentum
and Norsemont.
The Cochavara Project consists of six concessions totalling 3,479 hectares located in the Department of La Libertad in Northern
Peru, approximately 70 kilometres east of the city of Trujillo. The historical Quiruvilca silver/lead/zinc mine ("
Quiruvilca
") is
located 3.5 kilometres northeast of the northern boundary of the Cochavara Project area. Quiruvilca is a large polymetallic vein
deposit with over 130 different mineralized structures.
Both Cochavara and Quiruvilca are located within the Mid-Miocene
Calipuy volcanic complex that hosts several world-class precious metal deposits such as Newmont's Yanacocha and Barrick's
Pierina gold mines, which are located approximately 120 kilometres north and 180 km southeast of Cochavara, respectively.
Mineralization hosted at Quiruvilca, Yanacocha and Pierina is not necessarily reflective of the mineralization that may be hosted
on the Cochavara silver-lead-zinc project.
According to Bartos (1984), mineralization at Quiruvilca is controlled by a series of east-northeast-striking polymetallic
(silver/lead/zinc) vein swarms, which have extensive lateral and vertical continuity with abundant splits and pinch-and-swell
structures. The mineralization at Cochavara is similarly controlled and occurs along strike of the Quiruvilca vein swarms.
Production from the Quiruvilca mine was first recorded in 1789 and has been mined on an industrial scale since 1924. More
recently, Pan American Silver acquired the Quiruvilca mine in 1995 and sold the mine to a private company in 2012. Cochavara
currently has a valid exploitation permit to extract minerals for processing at third-party plants. During 2018, Cochavara
underground development provided access to the main mineralized vein structure. The development adit was used to drift along
the mineralized structure, to provide mineralized material for processing, and to provide access for future underground drilling.
Property Highlights
Several mineralized structures have been identified on the Cochavara Property, with the main mineralized structure occurring
over an estimated strike length of 1,500 metres.
The main zone (Margarita Mine) has recently (2013, 2015, and 2018) been
explored by various companies including Norsemont, by drifting and cross-cutting on three separate mine levels: Margarita
Workings (Level 3605), Old Drift (Level 3641), and Level 3663, all accessed by hillside adits. Mostly chip samples taken from
mineralized veins ranging in widths from 0.1 to 1.0 metres, returned the following range of values: 6.1 g/t to 1,172 g/t Ag, 0.19%-
24.88% Pb, and 0.31%-26.81% Zn. Details of the various exploration and sampling programs are provided in the Cochavara
technical report.
The Cochavara Property has not been drill-tested.
NI 43-101 Technical Report
In connection with the completion of the transaction, Argentum has filed on SEDAR and on the Company's website
(
www.argentumsilvercorp.com
), a technical report prepared in accordance with NI 43-101 disclosure standards entitled
"
NI 43-
101 Technical Report on
the Cochavara Ag-Pb-Zn Project, Districts of Julcan, Calamarca and Quiruvilca, Provinces of
Julcan and Santiago de Chuco, Department of La Libertad, Peru
"
prepared by James A. McCrea, P.Geo. The report
provides a comprehensive review of the exploration activities on the property and provides recommendations for future work.
Proposed Exploration
Argentum's initial exploration and work programs are currently being planned for the Cochavara Project with a budget of $US
300,000 and will consist of two contemporaneous phases.
Phase I - $US 90,000
–
Detailed structural mapping and sampling to identify additional vein structures on the property.
–
Geophysics: drone magnetometer survey with LiDAR to identify intrusive/geologic contacts and possible vein targets and
Alpha Induced Polarization survey to identify possible polymetallic vein targets.
Phase II - $US 210,000
–
225 metres of underground exploration/development on known structures to search for and delineate high-grade
mineralization.
About Argentum Silver Corp.
Argentum Silver is a junior mineral exploration company listed on the TSXV under the stock symbol ASL. Argentum hold 80%
interest in the Vanadium Ridge Property located at the southern end of the Quesnel Trough 50 km north of Kamloops, British
Columbia. The property consists of 20 mining claims covering 2,151 hectares near the town of Barriere. The project hosts
vanadium-rich magnetite mineralization in seams and pods in altered ultramafic to intermediate intrusive rocks which form a
portion of a large Late Triassic Poison Creek diorite intrusion complex. The near-surface exposure of vanadiferous magnetite is
an attractive exploration target that may not require chemical processing for the liberation of a magnetite concentrate.
The technical aspects of this press release have been reviewed and approved by Gary Nassif, M.Sc., P.Geo., President and
CEO of Argentum.
For more information contact:
Gary Nassif, President & CEO
416-855-9304
* Bartos, P.J (1984) Mineralization, Alteration and Zoning of the Cu-Pb-Zn-Ag Lodes at Quiruvilca Peru, Master Thesis
Stanford University.
Neither the TSX Venture Exchange nor its Regulation Services Provider 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 guarantees 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.
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https://www.newsfilecorp.com/release/51300