Highlander Silver Commences 2024 Exploration Program at San Luis, Announces Board Change and Issuance of Shares
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HIGHLANDER SILVER COMMENCES 2024 EXPLORATION PROGRAM AT SAN LUIS,
ANNOUNCES BOARD CHANGE AND ISSUANCE OF SHARES
July 29, 2024 - Vancouver, British Columbia – Highlander Silver Corp. (CSE: HSLV)
(the “Company” or “Highlander Silver”) is pleased to announce the start of field activities
at the San Luis gold-silver project located in Ancash Department of central Peru ( the “San
Luis Project”).
The San Luis project which the Company acquired in May 2024, has Historical Measured &
Indicated mineral resources of 348,000 ounces (oz) of gold (Au) grading 22.4 g/t Au, and
9,003,300 oz silver (Ag) grading 578.1 g/t Ag. There are multiple targets for gr owth on the
>230 km² San Luis Project given limited and focused historical drilling, open extensions to
resources, and undrilled targets supported by highly anomalous (> 4 g/t Au) trenching and
rock samples. The San Luis Project has yet to be systematicall y explored with many
structures that have not yet been sampled providing further exploration potential, therefore
the Company´s initial exploration program comprises geological mapping and sampling to
develop targets for growth and discovery before more fo cused exploration on the highest
priority targets.
(See “San Luis Historical Mineral Resource” below for further details.)
A qualified person has not done sufficient work to classify the historical estimate as a current
mineral resource and the Company is not treating the historical estimate as a current mineral
resource.
The Company also announces that Fabian Baker has resigned as a director of the Company
to pursue other opportunities. The Company would like to thank Mr. Baker for his valuable
contributions during his tenure and wishes him success in his future endeavors. In
connection with his resignation, Mr. Baker has voluntarily cancelled a total of 450,000 stock
options of the Company exercisable at prices of $0.60 and $0.55 per share. In consideration
for cancellation of his options, the Company will issue Mr. Baker 146,923 common shares.
Highlander Silver President and CEO, David Fincham stated, “We are excited to have begun
geological mapping and sampling at San Luis. This means that our technical team is now
focusing on unlocking what we believe to be the tremendous discovery potential at the
project. We look forward to providing future updates as we explore the property and further
develop our understanding of the geology and targets. Also, on behalf of the Board of
Directors I would like to thank Fabian Baker for his support and dedication in getting
Highlander to this stage and wish him all the best for the future.”
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Finally, pursuant to a consulting agreement with the Company’s President and CEO, David
Fincham, the Company will issue a bonus of 75,000 common shares of the Company to Mr.
Fincham for meeting certain performance targets regarding capital raises since his
appointment as President and CEO.
The common shares of the Company issued as disclosed in this news release will be subject
to a four-month hold period from the date of issue under applicable securities laws.
San Luis Historical Mineral Resource
The historical mineral resource is included in a Technical Report titled “Technical Report for
the San Luis Feasibility Study, Ancash Department, Peru” (the “Technical Report”), with an
effective date of June 4, 2010. The report was prepared as a National Instrument 43-101 –
Standard of Disclosure for Mineral Projects (“National Instrument 43-101”) technical report
for Reliant Ventures S.A.C. and Silver Standard Resources Inc. by Mine and Quarry
Engineering Services, Inc., RR Engineering, Milne & Associates, Resource Modeling Inc,
Resource Evaluation Inc., and Montgomery Watson Harzag Americas Inc , and can be
accessed on SSR Mining’s SEDAR+ profile. The historic al estimate is considered to be
relevant and reliable for the purposes of the Company proceeding with the Transaction as it
provides an indication of the potential significance of the San Luis Project.
The Technical Report provides details on mineral resources and reserves, as well a potential
development option for the San Luis Project that considers underground mining and
processing using conventional cyanide leach methods. However, the prices, costs, and
development strategy and options are no longer current and need to be re-evaluated using
assumptions and qualifications that are more reflective of today’s environment.
Below is a summary of the historical resource estimate from the Technical Report.
The San Luis system is a volcanic hosted, low sulphidation, epithermal quartz, precious
metals deposit. Gold occurs as electrum and silver is present as acanthite, electrum, and
other silver sulphosalts.
The Ayelen vein is the better of the known vein structures with more than 85% of the
historical mineral resource derived from this single structure. Trenching and diamond drilling
have traced this structure along a NNW strike for over 700 meters, with a steep (80º) down
dip extension of more than 300 meters. True thicknesses of individual vein segments vary
from tens of centimeters to more than 10m, with an average width of 1.5m to 3.0m.
Mineral resource models were developed based on samples obtained from 96 surface
trenches (947m) and 136 drill holes (22,354m). Capping was used to reduce the influence
of erratic high-grade values. Block grades were estimated using one-meter composites and
inverse distance weighting. Estimated blocks were classified as either Measured, Indicated
or Inferred mineral resources based on distance to samples. For the Ayelen vein, blocks
within 15 meters of surface trenches were classified as Measured. Ayelen vein blocks within
25m of sample data were classified as Indicated. The remaining estimated Ayelen blocks
were classified as Inferred. An average dry density value of 2.61g/cm3 determined from 193
bulk density measurements was used for the resource calculation. The resulting historical
mineral resource is shown in the table below.
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Historical Mineral Resource Summary
Category Tonnes Average grades Contained Metal
Au (g/t) Ag (g/t) Au (Oz) Ag (Oz)
Measured 55,000 34.3 757.6 61,000 1,345,100
Indicated 429,000 20.8 555.0 287,000 7,658,200
Measured &
Indicated 484,000 22.4 578.1 348,000 9,003,300
Inferred 20,000 5.6 270.1 3,600 174,900
Notes:
• The historical m ineral resources are reported using a 6.0g/t Au equivalent cutoff
grade. The gold equivalent calculation assumed a gold to silver price ratio of 65:1,
and metal recoveries were not considered.
• The historical measured, indicated and inferred mineral resources use categories as
defined by the Canadian Institute of Mining, Metallurgy and Petroleum CIM Definition
Standards on Mineral Resources and Mineral Reserves
A qualified person has not done sufficient work to classify the historical estimate as a current
mineral resource and the Company is not treating the historical estimate as a current mineral
resource. Additional work including some re-sampling of historical intervals and a review of
the geological model, is ongoing to verify the historical resource estimate.
Qualified Person
All scientific and technical information contained in this news release has been reviewed
and is approved by Graeme Lyall (FAusIMM Nº224791), non -executive Director at
Highlander Silver Corp, who serves as the qualified person (QP) under the definitions of
National Instrument 43-101.
About Highlander Silver
Highlander Silver Corp., backed by the Augusta Group, Lundin Family members & affiliates
and Eric Sprott, is a mineral exploration company focused on the discovery of exceptional
silver-gold-polymetallic projects in the Central Andes, leveraging the team’s significant
technical and operational experience in Peru and South America more widely. Currently the
Company is developing the La Estrella and San Luis projects in central Peru. The Company
is listed on the Canadian Securities Exchange (“ CSE”) under the ticker symbol HSLV and
additional information about Highlander Silver and its mineral projects can be viewed on the
Company’s SEDAR+ profile at (www.sedarplus.ca) and its website
at www.highlandersilver.com.
Neither the CSE nor the Canadian Investment Regulatory Organization accepts
responsibility for the adequacy or accuracy of this news release.
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For further information, please contact:
David Fincham
Chief Executive Officer
Highlander Silver Corp.
(604) 283 7630
Forward - Looking Information
Certain information contained in this news release constitutes “forward -looking information” under
Canadian securities legislation. This includes, but is not limited to : the Company granting shares to
Mr. Fincham and Mr. Baker, and the Company’s plans regarding field activities at the San Luis
Project. Such forward looking information or statements can be identified by the use of words such
as “anticipates”, “plans”, “suggests”, “targets” or “prospects” or variations (including negative
variations) of such words and phrases, or state that certain actions, events or results “will” be taken,
occur, or be achieved. Forward-looking information involves known and unknown risks, uncertainties,
and other factors which may cause the actual results, performance, or achievements of the Company
and/or its subsidiaries to be materially different from any future results, performance, or achievements
expressed or implied by the forward-looking information. Such factors include, among others, general
business, economic, competitive, political and social uncertainties, uncertainty relating to the geologic
potential of the project, and risks relatin g to the Company. Although the Company has attempted to
identify important factors that could cause actual actions, events or results to differ materially from
those described in forward-looking information, there may be other factors that could cause acti ons,
events or results to differ from those anticipated, estimated or intended. Forward -looking information
contained herein are made as of the date of this news release. There can be no assurance that
forward-looking information will prove to be accurate, as actual results and future events could differ
materially from those anticipated in such statements. The Company undertakes no obligation to
update forward-looking information if circumstances or management’s estimates or opinions should
change, except as required by applicable securities laws. Accordingly, the reader is cautioned not to
place undue reliance on forward-looking information.