Peruvian Metals Corp. Provides Update on Palta Dorada Gold-Silver-Copper Project with Rio Silver Inc.
Peruvian Metals Corp. Provides Update on
Palta Dorada Gold-Silver-Copper Project with
Rio Silver Inc.
Edmonton, Alberta--(Newsfile Corp. - July 6, 2020) -
Peruvian Metals Corp.
(TSXV: PER) ("
Peruvian
Metals
" or the "
Company
" is pleased to announce that the Company plans to initiate during the third
quarter an exploration and bulk sampling program on the high grade Au-Ag-Cu Palta Dorada project
("Palta Dorada", "Property") located in the Ancash Department of Peru. Permits have been approved to
extend the underground workings at the main exploration target on the property. The extracted
mineralized material will form the bulk samples and will be processed at Peruvian Metals' Aguila Norte
Processing Plant. The Company signed a Memorandum of Understanding ("MOU") with Rio Silver Inc.
("Rio Silver") in early January 2020 (see the Company's news release January 9
th
) to jointly explore and
develop the Property by conducting a detailed sampling and mapping program along with a bulk
sampling campaign.
The Property covers an area of approximately 1200 hectares. Precious metal mineralization at Palta
Dorada consists of several high grade Au-Ag-Cu structures hosted in granitic rocks. The exploration
model that represents this type of gold-silver mineralization is considered to be "Intrusion Related Gold
Vein Systems". Similar gold systems are located in Peru's gold rich Pataz and Nasca-Ocoña Gold Belts
and the gold systems within the Tintina Gold Belt of Alaska.
Initial work at Palta Dorada identified and sampled four structures. The "Main Structure" that trends ENE-
WSW consists of a quartz vein exposed both in outcrop and in two small underground adits and shafts.
The Main Structure is observed to have a strike length of over 800 metres and is open along strike in
both directions. Artisanal workings expose portions of the Main Structure including a 53 metre deep
shaft where seven chip samples were taken at various depths from a quartz vein containing sulphides.
Assays results from these samples range from 3.06 g/t Au to 24.1 g/t Au, 36 g/t Ag to 865 g/t Ag and
0.31% Cu to 4.94% Cu over an average width of 0.60 meters. The weighted average of the assay results
is 10.51 g/t Au, 329 g/t Ag and 1.74% Cu.
A second mineralized structure, the "North 1 Structure" or "N1S" is observed north of the Main Structure
and trends WNW-ESE. The intersection of these structures represents a good exploration target. Twelve
samples were taken from small workings over a strike length of approximately 480 meters. All samples
were strongly oxidized and assay results ranged from 1.40 g/t Au to 17.3 g/t Au, 10.8 g/t Ag to 456 g/t Ag
and 0.02% Cu to 0.14% Cu over widths of 0.20 to 0.80 meters. The weighted average of the results is
7.92 g/t Au and 102 g/t Ag. A bottle-roll metallurgical sample with a head grade of 13.0 g/t Au and 102
g/t Ag returned 92.15-per-cent gold and 65-per-cent silver recoveries over 36 hours. Two other gold
bearing structures, the "South 1 Structure" or "S1S" and the "South 2 Structure" or "S2S", were
identified approximately 1500 meters south of the artisanal workings on the Main Structure. Limited
sampling was conducted in this area however one sample was taken from a mineral sack ready for
shipment to a toll mill contained oxidized quartz material returning 14 g/t Au and 74.4 g/t Ag.
The Company plans to start a property wide sampling and mapping program followed up by a detailed
magnetic survey. The exploration will also consist of continuing the underground sampling and mapping
on the Main Structure. This will involve extending the underground workings both laterally and vertically.
Permits have been submitted and approved to conduct this underground work which will result in bulk
samples of mineralized material. The underground work will greatly aid in the understanding of the
mineralized structures, which can be followed by underground drilling. The COVID-19 restriction
imposed by the government at this time does not yet allow the Company to commence underground
work but is expected in the next phases of reopening of the Peruvian Economy.
Metallurgical work performed by Procesmin Ingenieros Laboratories from a composite sample from
mineral ready for shipment to toll mills by the previous owner had a head grade of 23.21 g/t Au, 29.04
oz/t Ag and 4.95% Cu. Metallurgical work showed that two concentrates can be produced. The first and
more valuable concentrate graded 125.59 grams Au/MT, 4,808 grams Ag/MT and 24.41% Cu. A
second Au-pyrite concentrate was also produced graded 11.46 grams Au/MT Au, 565 grams Ag/MT
and 2.90% Cu. Sales from metal concentrates produced from the bulk sampling activity will be shared
between the two companies less all operational expenses related to the bulk sampling. Peruvian Metals'
80% owned Aguila Norte Processing Plant will charge the joint effort commercial mineral processing
rates on a similar basis to its other clients. The Processing Plant is accessible from the Property by
approximately 180 kilometres of mainly paved roadway.
Peruvian Metals will act as the operator of the joint effort and was responsible for obtaining the permits
necessary to explore and extract the bulk samples. Jeffrey Reeder the CEO of Peruvian Metals states:
"Our company is excited to initiate the exploration on the highly prospective Au-Ag-Cu Palta Dorada
property with Rio Silver. The Property has several high grade Au-Ag-Cu veins ready to be explored and
developed. We understand that grade is KING and we will concentrate our efforts on understanding the
controls and types of precious metal mineralization on the property. The Property has excellent
infrastructure and with the strength in gold prices, the precious metal concentrates produced at our
Aguila Norte Plant from the bulk sampling will allow further non dilutive exploration and development of
this prospective Palta Dorada Au-Ag-Cu property."
Jeffrey Reeder, P Geo, a qualified person as defined in National Instrument 43-101, has prepared,
supervised the preparation or approved the scientific and technical disclosure contained in this news
release.
About Peruvian Metals Corp.
Peruvian Metals Corp. is a Canadian Exploration and Mineral Processing company. Our business
model is to provide toll milling services for clients and to produce high grade concentrates from mineral
purchases. The Company continues to acquire and develop precious and base metal properties in Peru.
For further information on Peruvian Metals Corp. please visit
www.peruvianmetals.com
.
Peruvian Metals Corp. is a Canadian resource company listed on the
TSX Venture Exchange: Symbol "PER"
For additional information, contact:
Jeffrey Reeder Tel: (647) 302-3290
Website:
www.peruvianmetals.com
Email:
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 release.
Disclosure Regarding Forward-Looking Statements:
This press release contains certain "Forward-
Looking Statements" within the meaning of applicable securities legislation. We use words such as
"might", "will", "should", "anticipate", "plan", "expect", "believe", "estimate", "forecast" and similar
terminology to identify forward looking statements and forward-looking information. Such statements and
information are based on assumptions, estimates, opinions and analysis made by management in light
of its experience, current conditions and its expectations of future developments as well as other factors
which it believes to be reasonable and relevant. Forward-looking statements and information involve
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accordingly, readers should not place undue reliance on such statements and information. Risks and
uncertainties are more fully described in our annual and quarterly Management's Discussion and
Analysis and in other filings made by us with Canadian securities regulatory authorities and available at
www.sedar.com
. While the Company believes that the expectations expressed by such forward-looking
statements and forward-looking information and the assumptions, estimates, opinions and analysis
underlying such expectations are reasonable, there can be no assurance that they will prove to be
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