Highlander Silver Signs Option Agreement to Acquire 100% of the High-Grade Silver Politunche Property in Central Peru
Highlander Silver Signs Option Agreement to Acquire 100% of the High-Grade
Silver Politunche Property in Central Peru
January 19, 2022 - Vancouver, British Columbia – Highlander Silver Corp. (CSE:HSLV) (the “Company” or
“Highlander”) is pleased to announce the execution of an option agreement (the “Agreement”) to acquire
100% of the 600 hectare (Ha) Politunche Property (“the Property” or “Politunche”) located in the prolific,
silver-rich polymetallic belt of central Peru a nd just 15 kilometres from the Company´s flagship, Alta
Victoria Project. The Agreement replaces the Letter of Intent entered into by Highlander and announced
in a News Release on November 30, 2021.
Ron Stewart, President and CEO of Highlander commented, “Politunche is a highly prospective and
strategic addition to the company´s portfolio adding to our footprint and exploration upside in the district.
Rock sampling in the field thus far has confirmed the presence of high-grade silver with significant lead -
zinc and gold values. Ongoing e xploration will focus on further defining the minerali zed system and
prioritizing targets for drill testing as soon as permits are in place. We are excited about our exploration
campaign in the year ahead as we advance our efforts on both Alta Victoria and Politunche.”
Politunche Agreement Deal Terms
The Company can earn 100% ownership of the property by:
• Making a total of US$2,000,000 in cash payments over 4 years to the individual vendor
(the “Vendor”) as follows:
o US$5,000 on the signing of the Letter of Intent and US$5,000 on the execution of
the Agreement (both paid);
o US$5,000 per month during a period of twenty -two (22) months ending
November 2023;
o US$10,000 per month during a period of twenty-four (24) months ending
November 2025;
o A final US$1,640,000 within forty -eight months of the execution of the
Agreement; and
• Drilling a minimum of 2,500 metres.
The Property concessions are currently at the application stage , and the Vendor is in the process of
registering title to the concessions. The Agreement provides the Vendor with ten (10) months to obtain
title, and in the event of delay, the Company may suspend monthly option payments until such time as
title is obtained. The Company will not be permitted to conduct a drill campaign or register the Property
in its name until such time as title to the concessions is granted.
Upon completion of a Positive Feasibility Study the Company is required to make a one-time lump sum
payment of US$1,000,000 to the Vendor. The Vendor retains a 2% NSR which Highlander may buy back
for US$500,000 per 1% at its election within six (6) months on declaration of commercial production.
Highlander, at its election, can exercise the option to acquire the Property at any time within the forty -
eight (48) month option period by notifying the Vendor and paying the outstanding balance owing as of
the date of notification.
The Politunche Property
Politunche is located approximately 1 00km (map distance)
northeast of Lima, Peru. The Property is road accessible via
paved and improved gravel highway from Lima followed by
~20km of well maintained gravel and drill road (track). The
Property consists of two (2) contiguous exploration and mining
applications, Politunche (500 Ha) and Politunche 2 (100 Ha) filed
with the Mining Registry in Lima.
Since signing the Letter of Intent, Highlander has spent a
significant amount of time utilizing and following up historical
data from work completed by a previous operator. Information
available from historical work is neither complete no r, in the
case of surface sampling and drill data, can be verified according
to NI. 43-101 and therefore should not be relied upon.
The geology and prospectivity of the Property based on the present level of understanding can be
summarized as the following:
• Previous exploration ending in 2011 included surface sampling, mapping & 11 diamond drill holes
7 of which returned mineralized intercepts. (see Table 1 below).
• Large area of hydrothermal, argillic and quartz-sericite-pyrite alteration is intimately associated
with high level, intermediate sub-volcanic domes and dikes intruding well stratified volcaniclastic
rocks. Andesitic-basaltic lava flows overlie and locally cap stratified fragmental rocks.
• The mineralized system mapped and sampled by previous workers comprises dozens of individual
veins and breccias over a 2km x 1.5km area.
• These high grade, Intermediate Sulfidation veins and structures often crop out and most
commonly strike NE forming vein corridors up to 1km in strike length.
• Multiple, minerali zed structural corridors, evident from historic work, remain untested by
previous drilling
• Highlander´s limited sampling to date has returned exceptional Ag grades with strong Pb -Zn and
appreciable Au up to > 1.0 g/t. Previously reported results from Highlander rock grab or channel
sampling include the following:
• 2019004: 879 g/t Ag, 0.89 g/t Au, 1.4% Pb, 5.4% Zn from vein material grab
• 2019006: 1,535 g/t Ag, 0.64 g/t Au, 1.53% Pb and 1.21% Zn over 0.6m
• 2019008: 511 g/t Ag, 0.11 g/t Au, 3.61% Pb, 6.53% Zn over 0.3m
Subsequent due diligence sampling has resulted in the following high-grade results:
• PTR-00001: 1,128 g/t Ag, 1.17 g/t Au, 0.34% Cu, 10.24% Pb, 8.56% Zn vein material grab
• PTR-00009: 649 g/t Ag, 0.22 g/t Au, 1.41% Pb, 1.26% Zn from 0.2m vein
• PTR-00012: 437 g/t Ag, 0.54 g/t Au, 4.25% Pb, 0.25% Zn, across 0.3m vein/structure
• PTR-00020: 398 g/t Ag, 0.18 g/t Au, 1.4% Pb, 0.28% Zn from rock chip grab.
• Conceptual targets also include potential mineralization along dome/dike margins and
stratigraphic controls (mantos), as well as larger, thinly covered, structurally prepared stockwork
& intrusive related, base and precious metal mineralization at depth.
Table 1: Historic drill intercepts (Solitario Zinc Corp, SLR-TO, 2011 Annual Report)
Drill From To Interval* AgEq** Au Ag Pb Zn
Hole m m m g/t g/t g/t % %
AZ-001 80.3 84.8 4.5 93 1.16
113.5 117.5 4.0 339 1.91 90.4 2.5
AZ-002 92.6 93.6 1.0 248 3.10
112.2 115.1 2.9 254 1.35 64.1 0.7 1.6
AZ-003
45.0 46.7 1.7 90 90.0
119.1 173.6 54.5 59 0.46 7.3 0.1 0.3
123.2 128.0 4.8 117 1.46
165.8 168.5 2.7 280 1.80 42.9 0.8 1.8
AZ-004 30.4 31.3 0.9 274 273.9
166.0 171.0 5.0 135 1.40 22.6
AZ-005 133.8 134.7 0.9 258 0.73 88.1 2.9
AZ-006 150.9 151.3 0.4 142 1.30 38
AZ-011 29 30.3 1.3 641 7.60 32.2
*Interval (m) refers to the reported core length and does not necessarily reflect true width.
**AgEq (Calculated by Highlander based on 3 -year trailing average metal prices of $1,650/oz Au,
$20.60/oz Ag, $0.90/lb Pb, $1.15/lb Zn and recovery 100%)
Additional information about Highlander and its mineral projects can be viewed on the Company’s SEDAR
profile at www.sedar.com and its website at www.highlandersilver.com.
Quality Control
Previously reported rock and soil samples included in this press release were delivered to ALS
Laboratories, a certified laboratory located in Lima, Peru. See Highlander’s November 30, 2021 news
release for quality control associated with those samples.
All new rock and soil samples reported in this press release were delivered to CERTIMIN Laboratories, a
certified laboratory located in Lima, Peru for preparation and analysis. Rock samples were weighed, dried,
crushed to 90% <2mm and riffle split while soils were weighed, dried and screened to -180 µm. A 250g
subsample was pulverized to 85% <75 µm for both rock and soil sample types. All samples were assayed
using a 30g nominal weight fire assay with atomic absorption finish (Au-G0108) for gold, and 49 elements
by 4-acid ICP-OESMS (method G0176R). When G0176R results were >100ppm for Ag and >10,000ppm for
Pb and Zn assays were reported using four-acid digest method (G0048) and metals (Ag-G0002, Pb-G0077,
Zn-G0388). When silver >1000 ppm the samples were reported using Fire Assay -gravimetric (Ag-G0008).
No standards or blanks were inserted by Highlander. CERTIMIN routinely inserts certified gold, silver and
base metal standards, blanks and pulp duplicates, and results of all C ERTIMIN QA/QC samples are
reported. The standard, blank and duplicate samples used by CERTIMIN were considered sufficient QA/QC
for Highlander’s sample analysis.
Qualified Person Statement
All scientific and technical information contained in this news release was prepared and approved by
Ronald Stewart, P.Geo., President and CEO of Highlander Silver Corp. who is a Qualified Person as defined
in NI 43 -101. Mr. Stewart has verified the scientific and technical information disclosed in this news
release by reviewing the sampling, analytical and drilling data from the Property, as well as reviewing and
referencing published scientific papers and government assessment reports related to the Property that
outline their geology and structure, mineralization potential, and deposit style.
Marketing and Investor Relations
Highlander is also pleased to announce that it has entered into an agreement with Grow Resources, Inc.
(“Grow Resources ”), a marketing and investor relations company run by Anne Hite. Pursuant to the
agreement, Grow Resources will establish and manage a social media presence for Highlander. The
engagement commenced January 18, 2022 at a cost of US$1,000 per month , and is terminable on one
month’s notice. Grow Resources is located in Lakewood, Colorado and can be reached at (303) 519 5149.
About Highlander Silver Corp.
Highlander Silver Corp. is a mineral exploration company focused on the exploration of the Alta Victoria
silver-polymetallic project 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.
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:
Ronald Stewart
Chief Executive Officer
Highlander Silver Corp.
(604) 283 7360
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, information or statements with respect
to anticipated payments and drilling to be completed pursuant to the terms of the Agreement, the
acquisition of the Property, registration of title to the Property, the future exploration plans of the
Company, costs and timing of future exploration , anticipated results of exploration, potential
mineralization of the Property, potential for future acquisitions and anticipated timing of such acquisitions.
Such forward looking information or statements can be identified by the use of words such as “believes”,
“plans”, “suggests”, “targets” or “prospects” or variations (including negative variations) of su ch 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, the actual results of current exploration activities, conclusions of economic
evaluations, changes in project parameters as plans continue to be refined, future prices of precious and
base metals, possible variations of ore grade or recovery rates, failure of plant, equipment, or processes
to operate as anticipated, accident, labour disputes and other risks of the mining industry, and delays in
obtaining, or failure to obtain, governmental approvals, registration of title to the Property, or financing,
or delays in the completion of development or construction activities. 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 antic ipated, 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.