Highlander Silver Issues Clarifying Statements and Amendments IN Relation to Information Reported FOR Its LA Estrella Property IN PERU
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HIGHLANDER SILVER ISSUES CLARIFYING STATEMENTS AND
AMENDMENTS IN RELATION TO INFORMATION REPORTED FOR
ITS LA ESTRELLA PROPERTY IN PERU
July 11, 2023. As a result of a review by the British Columbia Securities Commission, Highlander
Silver Corp. (CSE:HSLV) (the “Company” or “Highlander Silver ”) is issuing the following news
release to clarify its disclosure regarding its La Estrella project, Central Peru. In the Company’s May
16, 2023 news release the Company disclosed details relating to an exploration target for their La
Estrella project. Details on the exploration target were also included in an Investor Presentation dated
May 2023 published on the company’s web site. A new Investor Presentation has been posted on
the company’s website at www.highlandersilver.com
Highlander confirms that the grades and tonnages referred to in the previous news release and
Investor Presentation are a target for further exploration and that more work and information is
required before fulfilling C IM requirements for the disclosure of an eventual Mineral Resource.
Moreover, it is uncertain if this work will result in the target being delineated as a mineral resource.
Ag equivalent grades for the exploration target were reported in the May 16 2023 disclosure based
on assumptions for Ag and Au prices that did not consider metallurgical recoveries. As such, the
metal equivalent calculations should not be relied on.
Amendments have therefore been included in the following disclosure of the exploration target
outlined at La Estrella.
The Company has developed 3D geological models of the Ag- Au mineralization using the available
drilling information and interpreted geological controls . Potential extensions to the mineralized
envelopes have been used to outline a near surface exploration target of 15 to 35 Mt averaging
between 50 and 60 g/t Ag, and 0.4 to 0.6 g/t Au containing some 25 to 60 MOz Ag and 0.2 to 0.7
MOz Au.
The potential quantity and grade of the exploration target is conceptual in nature, and more
exploration is required to define a mineral resource. Important aspects such as metallurgical
processing options need to be investigated to evaluate potential recoveries of Ag and Au. As such, it
is uncertain if this work will result in the target being delineated as a mineral resource. In addition,
further drilling will be required to investigate the extensions and continuity of the mineralization.
David Fincham, Highlander’s President and CEO commented, “Since our acquisition of the La Estrella
project in March earlier this year, the Highlander team has worked to understand the proj ect´s
exploration target potential on 3D geological modelling using historic drilling. We are delighted with
the results of this initial work which confirms our view that La Estrella has significant exploration
potential. In parallel with this technical work, we have established relationships with the local
communities who have indicated strong support for Highlander moving the project forward.
The La Estrella acquisition represents an inflection point for the Company and our shareholders. Our
planned work towards Highlander Silver´s phase I drill program and a potential inaugural resource at
the project provides the company with significant upside potential.”
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Following the acquisition of the La Estrella project in Central Peru (see press releas e of March 23
2023), the Highlander team has been working with the historical drilling data (total of 41 drill holes for
8,500m) to understand the project´s exploration potential.
Different conceptual Ag-Au mineralization models, based on distance from drillholes, were developed
to represent the potential continuity and extents of the mineralization, and these were used to provide
for low and high case scenarios shown in Table 1.
Table 1
The results indicate a near surface exploration target of 15 to 35 Mt averaging between 50 and 60 g/t
Ag, and 0.4 to 0.6 g/t Au containing some 25 to 60 MOz Ag and 0.2 to 0.7 MOz Au. See figure 1.
Figure 1: La Estrella 3D Ag-Au mineralization model showing mineralized drill hole intercepts and
potential extensions
The potential quantity and grade of the exploration target is conceptual in nature, and more
exploration is required to define a mineral resource. Important aspects such as metallurgical
processing options need to be investigated to evaluate potential recoveries of Ag and Au. As such, it
is uncertain if this work will result in the target being delineated as a mineral resource. In addition,
further drilling will be required to investigate the extensions and continuity of the mineralization.
La Estrella Exploration Target
Low Case Scenario High Case Scenario
Tonnes Grade Contained Metal Tonnes Grade Contained Metal
Mt Ag Au Ag Au Mt Ag Au Ag Au
g/t g/t MOz MOz g/t g/t MOz MOz
15 50 0.4 25 0.2 35 60 0.6 70 0.7
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It is significant that some of the highest grade drill hole intercepts are open to the South, with a 500
m gap to the next drill hole, providing significant additional potential upside. The team will now focus
on producing a detailed geological model that will underpin the Company´s planned phase I drill
program. In addition, the Company will continue to build trust and nurture our existing relationships
with the local communities and other key stakeholders to create an optimal environment for advancing
the project.
About La Estrella
The La Estrella project is located in the Huancavelica Department, Central Peru, about 250 km ESE
of Lima, on the eastern slope of the Western Cordillera. It is within the prolific Miocene polymetallic
belt, approximately 34 km NNE of the Julcani Mine, which has produced over 105 million ounces of
silver from high grade vein mineralisation averaging 16 ounces per ton since production started by
Buenaventura in 1953 (Hector Barrionuevo, Julcani – Mina emblematica de Minas Buenaventura con
63 años de operación. PERU XVIII Peruvian Geological Congress).
Mineralisation at La Estrella occurs spatially and genetically associated with a sequence of volcanic
and subvolcanic rocks, comprising coarse fragmental dome- diatreme andesite, massive porphyritic
andesite and dacite dome facies, with late stage emplacement of amygdaloidal, biotite- feldspar
porphyritic lamprophyre dykes and sills. These rocks lie on the hanging wall of a west-dipping fault,
against redbeds of the Permo-Triassic Mitu Formation.
From 2003 to 2012 a total of 8,500 m was drilled in 41 holes defining a NNE tabular, west dipping
mineralised system approximately 1,800 m long north to south, up to 300 m wide east to west, and
200 m thick. The deposit, which is open to the north, south and also down dip to the west, consists
of multi -episodic polymetallic (Ag- Au ±Pb ±Zn ±Cu) intermediate sul phidation epithermal
mineralisation that often starts in drill holes within a few metres from surface.
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. is a mineral exploration company focused on the exploration of silver -
polymetallic projects in central Peru, as well as targeting the acquisition of additional mineral projects
by leveraging the team’s significant experience in Peru and South America more widely. Additional
information about Highlander Silver and its mineral projects can be viewed on the Company’s SEDAR
(www.sedar.com) profile at www.sedar.com and its website at www.highlandersilver.com
Neither the Canadian Securities Exchange (CSE) nor the Investment Industry Regulatory
Organization of Canada (IIROC) accepts responsibility for the adequacy or accuracy of this news
release.
For further information, please contact:
David Fincham
Chief Executive Officer
Highlander Silver Corp.
(604) 283 7630
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Forward-Looking Information
Certain information contained in this news release constitutes “forward- looking information” under
Canadian securities l egislation. This includes, but is not limited to, information or statements with
respect to the future exploration plans of the Company, permitting and timing of future exploration.
Such forward looking information or statements can be identified by the us e 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, access
to sufficient capital, general business, economic, competitive, political and social uncertainties, the
actual results of current exploration activities, changes in project parameters as plans continue to be
refined, accidents, labour disputes and other risks of the mining industry, and delays in obtaining
governmental approvals. 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 actions, 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.