Goldplay Exploration Options San Marcial Project from Ssr Mining
GOLDPLAY EXPLORATION OPTIONS SAN MARCIAL PROJECT FROM SSR MINING
April 18, 2018, Vancouver, BC - Goldplay Exploration Ltd. (TSXV: GPLY - the “Company” or “Goldplay”), is
pleased to announce that the Company has entered into an option agreement to acquire a 100% interest
in the San Marcial Project (“San Marcial”) in Sinaloa State, Mexico from a subsidiary of SSR Mining Inc.
(NASDAQ: SSRM) (TSX: SSRM) ("SSR Mining").
San Marcial consists of 1,250 hectares, located south of the La Rastra and Plomosas historical mines and
30 km from the Company’s 100% owned El Habal Project in the historic (gold -silver) Rosario Mining
District, Sinaloa, Mexico (Figure 01). San Marcial is an attractive near surface high grade silver , zinc and
lead project with a historical National Instrument 43-101 – Standards of Disclosure for Mineral Projects
(“NI 43 -101”) resource completed by Silvermex Resou rces Inc . (“Silvermex”) (1) and with immediate
opportunity for resource expansion.
Resource Grade Contained Metal
Category Tonnes Ag (g/t) Zn (%) Pb (%) Ag M(oz) Zn M(lbs) Pb M (lbs)
Indicated 3,755,893 149.20 0.67 0.36 18.0 29.9 55.3
Inferred 3,075,403 44.21 0.51 0.29 4.4 19.5 34.7
(1) The above historical NI 43-101 resource estimate is based on a cut off of 30 g/tAg for open pit and 80 g/t Ag for underground resource
classification completed by Micon International Ltd. for Silvermex on November 5 , 2008. The historical resource is based on 27,349
meters of drilling in 30 core drill holes completed by Silvermex and previous operators over a strike length of 600 meters and vertical
extent of 250 meters. A qualified person has not done sufficient work to verify and to classify the historical estimate as current mineral
resources and the Company is not treating the historical estimate as current mineral resources. Further work must be carried out to
verify all historic information before a resource estimate is possible, and there can be no assurance that when established, that any
such resource would be economically recoverable. The NI 43-101 was filed on SEDAR on November 21, 2008 under the name of Silver
Ore Mining Corporation, the predecessor of Silvermex.
Figure 01 – Location of San Marcial Project and Goldplay Exploration Concessions
Key Highlights:
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• Resource Expansion Potential: The existing historical NI 43 -101 resource estimation exhibits
significant exploration upside as it only comprises 600 m of mineralized trend being open along
strike and down dip along an additional 3.5 km (Figure 02).
Figure 02 – Location of Historical NI 43-101 Resource and 3.5 km Exploration Trend
• Presence of high grade mineralization near surface supporting opportunity for an open pit
project: Significant intercepts near the surface from previous drill programs such as , 21.2 meters
@721g/t (True width) (SM -13 ), 93.3 meters (true width) grading 104.2 g/t silver (SM -8), 53.95
meters (true width) grading 235 g/t silver (SM-4), 11.61 meters (true width (SM-2), 17.61 meters
(true width) grading 282 g/t silver (SM-5), 12.68 meters (true width) grading 540 g/t silver (SM-9)
and 17.5 meters (true width) grading 621 g/t silver (SM-13).
• Positive Preliminary Historical Metallurgical Results: Historical preliminary metallurgical results
from oxide and sulfide samples from San Marcial have indicated column leach tests recoveries in
the range of 80% for a 72-hour leach period and preliminary flotation test work in drill core
composite samples reporting recoveries in the range of 90%.
• Significant Exploration Potential: San Marcial exhibits significant exploration upside supported
by historical regional exploration programs completed by previous operators with identification
of 14 exploration targets like San Marcial inside the concessions. Some of these exploration
targets consists of historical shallow pits, caved shafts and historical underground workings in
areas with extensive hydrothermal alteration hosted by major regional structures.
• Accessible Location with Attractive Infrastructure : San Marcial is 12km from the Plomosas
Project (First Majestic Silver Corp., TSX:FR) and the La Rastra historical mine and mill facilities on
an unpaved road. It is a historical mining district with availability of power and attractive
topography for future developments.
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Figure 03 –Cross Section of Historical NI 43-101 Resource – Mineralized Zone
Option Agreement Terms:
The option will be exercisable upon the Company paying SSR Mining an aggregate of $2,575,000 in cash,
issuing an aggregate of 3,500,000 common shares of the Company, incurring an aggregate of $3,000,000
in exploration expenditures on San Marcial in tranches over a three-year period, granting SSR Mining a
NSR royalty and the grant of equity participation rights over a one-year period, according to the following:
Cash Shares Exploration
Expenditures
Due within 5 business days of receipt of TSXV
approval (the “Approval Date”)
$75,000 1,250,000 -
Due by the first anniversary of the Approval Date - - $500,000
Due by the second anniversary of the Approval
Date
- 750,000 $1,000,000
Due by the third anniversary of the Approval Date $2,500,000 1,500,000 $1,500,000
Total $2,575,000 3,500,000 $3,000,000
The Company must also on or before the third anniversary of the Approval Date complete an updated
resource estimate report conforming to the standards of NI 43 -101. The updated resource estimate
(“Resource Estimate”) will form the basis for the NSR royalty to be granted and the purchase price related
to the buy-back rights. The Resource Estimate will include Inferred Mineral Resources, Indicated Mineral
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Resources and Measured Mineral Resources (as such terms are defined in the CIM Definitions Standards
for Mineral Resources and Mineral Reserves, as amended from time to time).
The NSR royalty granted to SSR Mining will be structured in accordance with the following commodity
structure and based on the Resource Estimate:
Resource Estimate Commodity % NSR
<= 500,000 oz Au (Eq) 0.5%
500,000 oz to 1.0 Moz Au (Eq) 0.75%
1.0 Moz to 2.0 Moz Au (Eq) 1.0%
>2.0Moz Au (Eq) 1.5%
The Company may purchase the NSR royalty from SSR Mining in accordance with the following table:
Resource Estimate Commodity Buy Back Rights ($)
<= 500,000 oz Au (Eq) $500,000
500,000 oz to 1.0 Moz Au (Eq) $1,250,000
1.0 Moz to 2.0 Moz Au (Eq) $2,000,000
>2.0Moz Au (Eq) (Incremental
Resource Greater
than 2.0Moz/
500,000 oz) *
$500,000
The Company grants SSR Mining the right to purchase common shares in any future equity financing that
the Company may complete during the one -year period following the Approval Date. This grant of
participation rights will provide SSR Mining the right to purchase that number of common shares being
offered by the Company in such financing as is equal to SSR Mining’s then percentage interest in the issued
share capital of the Company, for the consideration and on the same terms and conditions as offered to
the other potential subscribers under such financing.
The approval of the option agreement is subject to the receipt of all necessary regulatory approvals,
including the approval of the TSXV.
Marcio Fonseca, Goldplay’s Chief Executive Officer, stated, “Located only 30 km from the Company’s El
Habal Project, the addition of San Marcial to our portfolio in the Rosario Mining District is an excellent
complement to our strategy of consolidating a highly prospective 100% owned portfolio in a world class
district. We are delighted with this opportunity and the addition of SSR Mining as a shareholder. The near
surface high grade historical resource allied with preliminary historical metallurgical data encourages the
Company to continue exploration aiming to expand the resource along the 3.5 km trend. The historical
exploration results delineating 14 targets for precious metals explorations represent an upside
exploration potential in San Marcial for future discoveries. The Company looks forward to advancing
exploration programs at San Marcial”.
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Geology and Mineralization of the San Marcial Project
The mineralization at San Marcial is typical of the low sulphidation, epithermal systems hosted near the
contact of the Tertiary, Upper and Lower Volcanic units in the Sierra Madre Occidental Geologic Province.
This Province hosts many important precious metal mines and prospects along its 1,500 km long, 250 km
wide extent.
The geology at San Marcial comprises Upper Volcanic group with basal conglomerates, rhyolites and
dacites, predominantly at the higher elevations on the NE portion of San Marcial. The basal conglomerate
lies on the erosional surface above the Lower Volcanic. Unconformable underlying the Upper Volcanic
group is Lower Volcanic group with predominance of dacites occurring at lower elevations. The
unconformity is generally a mineralization control guide for future exploration as evidenced in the
historical NI 43-101 resource model.
The known precious metals prospects at San Marcial are hosted on what appears to be a set of northwest
trending fault structures with a 60-northeast dip which is close to the prospective unconformity ( Figure
03). Along the 3.5 km mineralized trend , there are highly altered hydrothermal breccias , conglomerates
and relatively fresh dacite porphyry intrusive. Faulting is an imp ortant structural feature related to the
silver gold zinc lead copper mineralization and the intersection of east-west with northwest structures are
considered the most prospective areas for exploration at San Marcial.
There are two main mineralized zones (upper and lower), located on the center of the mineral concession
and both outcropping at surface (Figure 03). Both mineralized zones and associated host rocks exhibits
fracture filling and typical hydrothermal textures of epithermal deposits. There are local brecciation
hosting mineralized zones. The mineralized zone s are continuous along strike with the mineralization
separated into two portions along the 600 m strike length of the historical resource estimate.
The historical exploration programs completed by previous operators have discovered prospective zones
with gold values at surface associated with quartz stickwork hosted in silicified and crackled andesites.
Similar gold mineralization style has been identified in the San Marcial historical NI 43-101 resource area,
however it has not been included in the resource estimation, representing exploration opportunities.
San Marcial should be regarded as a mid -stage project which may have a significant economic potential
should the mineralization prove to be more extensive than is presently indicated by the current resource
estimate.
Next Steps
San Marcial hosts a significant drill and exploration database. The Company aims to review al l data and
delineate an aggressive exploration program not only targeting resource expansion with drilling program
along the 3.5 km mineralized trend, but also advance exploration on the 14 historical exploration targets
with objective of delineating new discoveries.
The Qualified Person under the NI 43-101 for this news release is Marcio Fonseca, President and CEO for
Goldplay, who has reviewed and approved its contents.
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About Goldplay Exploration Ltd.
Goldplay is an exploration-stage company with a strategic portfolio in the Rosario Mining District, Sinaloa,
Mexico. Goldplay is currently focused on advancing exploration activities including drilling on its 100%-
owned El Habal Project.
Goldplay’s flagship El Habal Project is a low sulphidation epith ermal exploration-stage project. The El
Habal Project is in the vicinity of the historical Au -Ag Rosario Mine (“Rosario Mine”). The Rosario Mine
reportedly operated for 250 years . Goldplay’s team has over 30 years’ experience with senior roles in
exploration, financing and development in the mining industry, including over 10 years of extensive
exploration experience in the Rosario Mining District, leading to previous successful discoveries. A current
NI 43-101 report on The El Habal Project is filed on SEDAR.
Goldplay is providing th e historical data related to the San Marcial for informational purposes only.
Goldplay has not completed any quality control assurance program to the historical data. Although the
Company believes that the work was com pleted by competent persons to the standards of the day and
the Company cautions the reader that the drill results are historical in nature and have yet to be verified
by the Company’s “Qualified Person” under NI 43-101.
Disclaimer for Forward-Looking Information
This press release contains forward-looking statements and information that are based on the beliefs of management
and reflect the Company’s current expectations. When used in this press release, the words "estimate", "project",
"belief", "anticipate", "intend", "expect", "plan", "predict", "may" or "should" and the negative of these words or such
variations thereon or comparable terminology are intended to identify forward-looking statements and information.
Such statements and information ref lect the current view of the Company. Risks and uncertainties that may cause
actual results to differ materially from those contemplated in those forward-looking statements and information. By
their nature, forward -looking statements involve known and unkn own risks, uncertainties and other factors which
may cause our actual results, performance or achievements, or other future events, to be materially different from
any future results, performance or achievements expressed or implied by such forward -looking statements. THE
FORWARD-LOOKING INFORMATION CONTAINED IN THIS PRESS RELEASE REPRESENTS THE EX PECTATIONS OF THE
COMPANY AS OF THE DATE OF THIS PRESS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH
DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD
NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE GOLDPLAY MAY ELECT TO, IT DOES NOT
UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME EXCEPT AS REQUIRED IN ACCORDANCE
WITH APPLICABLE LAWS.
Mr. Marcio Fonseca, For Further Information:
P. Geo, President & CEO Contact: +1 (604) 202 31 55
Goldplay Exploration Ltd. Email: [email protected]
Website: www.goldplayexploration.com
999 West Hastings Street, Suite 900
Vancouver, British Columbia V6C 2W2
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 press release.