Kingsmen Signs Letter of Intent to Acquire Los Colorados Project in Chihuahua, Mexico
TSXV: KNG
OTCQB: KNGR
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Kingsmen Signs Letter of Intent to Acquire
Los Colorados Project in Chihuahua, Mexico
Vancouver, British Columbia – September 29, 2022 - Kingsmen Resources Ltd. ("Kingsmen" or the
“Company") (TSXV:KNG) (OTCQB: KNGRF) announces that on September 21, 2022 and September
26, 2022 the Company’s Mexican subsidiary Leona Silver Exploraciones S.A. DE C.V. signed two non-
binding Letters of Intent with Minera Sierra Almolya, S.A.DE C.V, Luz Adriana Ramos Garcia and
Fermin E duardo Ramos Garcia to acquire a 100% interest in the Los Colorados Gold- Silver-Copper-
Lead-Zinc Project in Chihuahua Mexico. The project area includes the Los Colorados mine and
surrounding claims. The Company is now working towards a definitive agreement.
The project area is located approxim ately 30 kilometres southeast of the city of Hidalgo de Parral and 40
kilometers east of the mid-Tertiary polymetallic quartz sulfide vein deposits of the San Francisco del Oro
and Santa Barbara mining districts which are amongst the largest Pb -Zn-Cu-Ag deposits in Mexico (1)(2).
In 1988 these districts were estimated to have produced, since 1650, over 13 billion g (440 million oz) of
silver(1)
.
Historic mining by the American Smelting and Refining Company (ASARCO) in the project area was
conducted betwee n 1906 – 1952 with production from the La Soledad, Santo Niño, Eva and Rosario
veins. There are no records of production. The project area has recently been consolidate d and is located
within a well- established mining district, with the local communities f ully supportive of mineral
exploration.
“I am very excited about the opportunity to acquire the Los Colorados Project” stated Scott Emerson
President and CEO of Kingsmen. “I believe the project presents an exceptional opportunity to build a
significant resource, and to further explore the project area. Despite the long production history in the
area, only 10 holes have been drilled over the project area due to the past fragmentary property ownership
and now that the area has been consolidated it presents tremendous opportunity to make new discoveries.
In making this acquisition, Kingsmen is effectively following a well- established business model of
exploring an old and under explored mining district.”
The Las Coloradas Project is an epithermal, high-grade, narrow-vein, silver-gold copper-lead-zinc project
within the Carbonate Replacement Deposits belt of Chihuahua state, Mexico. Outcropping mineralization
is hosted by the Mezcalera Lower Cretaceous Formation. The Mezcalera Formation is of similar age and
composition to the Parral Formation that hosts the mineralization in the San Francisco del Oro and Santa
Barbara districts(3).
Historic mining and recent, limited, diamond drilling (7703.45m – 10 holes) have intersected three
distinct styles of mineralization on the property – vein, porphyry and skarn(4). These remain the targets for
future drilling. No significant deep drilling has taken place on the project. More than twenty veins are
known with most past production having come from the NW -trending Soledad vein system. There are
numerous old mining works visible (pits, shafts, and superficial stopes) with depths of 10 m to 140m on
the main shafts.
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In the Letter of Intent, the Terms of the Acquisition call for Kingsmen to make payments over a seven
year period for a total of US$ 2,140,000 and a purchasable 2½% NSR.
The transaction will constitute a Fundamental Acquisition for Kingsmen and will be an arm’s length
transaction, further details of which will be announced upon signing of the Definitive Agreement , which
will be subject to TSXV approval.
The scientific and technical disclosure in this news release has been reviewed and approved by Kieran
Downes, Ph.D., P. Geo., a Qualified Person as defined by National Instrument 43- 101. Dr. Downes is a
consultant to Kingsmen.
(1) Grant G.J. and Ruiz J. (1988) The Pb- Zn-Cu-Ag deposits of the Granadena Mine, San Francisco del Oro-
Santa Barbara District, Chihuahua. Economic Geology (1988) Vol. 83 pp. 1683–1702.
(2) Megaw, P.K., Ruiz, J. and Titley, S.R. (1988) High-temperature, carbonate-hosted Ag-Pb-Zn(Cu)
deposits of northern Mexico.
Economic Geology (1988) Vol. 83 pp. 1856-1885
(3) Texidor Carlsson, J.M. and Wilson, V. (2020) NI 43-101 Technical Report on the Parral project, State of
Chihuahua, Mexico.
(4) Luna, M. (2020) Las Coloradas Project, Minera Argentita Exploracion Confidential Internal Report.
ABOUT KINGSMEN RESOURCES
Kingsmen is currently focused on district-scale exploration for precious metals in the prolific mining
districts of Parral Mexico. The proposed acquisition of the Los Colorados Project in Mexico will give the
Company a renewed focus on exploration, development and production. In addition, the company holds a
1% NSR on the La Trini project which forms part of the Los Ricos North project currently being explored
by GoGold Resources in the state of Jalisco State, Mexico.
Signed: “Scott Emerson” President & CEO
Phone: 6046859316
Email: [email protected]
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada
accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Statement:
All statements, trend analysis and other information contained in this press release about anticipated future
events or results constitute forward-looking statements. Forward-looking statements are often, but not always,
identified by the use of words such as “seek”, “anticipate”, “believe”, “plan”, “estimate”, “expect” and
“intend” and statements that an event or result “may”, “will”, “should”, “could” or “might” occur or be
achieved and other similar expressions. All statements, other than statements of historical fact, included herein,
including, without limitation, statements regarding the entering into of a definitive agreement, the completion of
the acquisition of the Las Coloradas Project and receipt of regulatory approval, are forward-looking statements.
Although Kingsmen believes that the expectations reflected in such forward- looking statements and/or
information are reasonable, undue reliance should not be placed on forward-looking statements since Kingsmen
can give no assura nce that such expectations will prove to be correct. These statements involve known and
unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from
those anticipated in such forward- looking statements, i ncluding the risks, uncertainties and other factors
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identified in Kingsmen’s periodic filings with Canadian securities regulators, and assumptions made with regard
to: Kingsmen’s ability to enter into a definitive agreement and make the required payments t hereunder; and
Kingsmen’s ability to secure the necessary regulatory approvals. Forward- looking statements are subject to
business and economic risks and uncertainties and other factors that could cause actual results of operations to
differ materially from those contained in the forward- looking statements. Important factors that could cause
actual results to differ materially from Kings men’s expectations include risks associated with the business of
Kingsmen; risks related to the satisfaction or waiver of certain conditions to the closing of the acquisition of the
Las Coloradas Project; non- completion of the acquisition of the Las Coloradas Project; risks related to
exploration and potential development of the Las Coloradas Project; business and economic conditions in the
mining industry generally; fluctuations in commodity prices and currency exchange rates; uncertainties relating
to interpretation of drill results and the geology, continuity and grade of mineral deposits; the need f or
cooperation of government agencies in the exploration and development of properties and the issuance of
required permits; the need to obtain additional financing to develop properties and uncertainty as to the
availability and terms of future financing; the possibility of delay in exploration or development programs and
uncertainty of meeting anticipated program milestones; uncertainty as to timely availability of permits and other
governmental approvals; and other risk factors as detailed from time to time and additional risks identified in
Kingsmen’s filings with Canadian securities regulators on SEDAR in Canada (available at www.sedar.com).
Forward-looking statements are based on estimates and opinions of management at the date the statements
are made. Kingsmen does not undertake any obligation to update forward looking statements except as
required by applicable securities laws. Investors should not place undue reliance on forward- looking
statements.