RIO Silver Acquires New GOLD/Silver Concession Adjacent to Ninobamba with Historical Drill Result of 1.19 G/T Au over 72 Metres
Rio Silver Inc.
40 University Avenue, Suite 603, Toronto, Ontario M5J 1T1 Canada
Tel: 416 479-9546
Website: riosilverinc.com
RIO SILVER ACQUIRES NEW GOLD/SILVER CONCESSION ADJACENT TO
NINOBAMBA WITH HISTORICAL DRILL RESULT OF 1.19 G/T AU OVER 72
METRES
January 9, 2017, Toronto, Canada – Rio Silver Inc. ("Rio Silver" or the "Company") (TSX.V:
RYO) is pleased to announce th at it has acquired by application, an additional 553 hectare
concession immediately west of and adjo ining to the Niñobamba Silver-Gold Project
(“Niñobamba”) that now comprises 3653 hectares . The new concession c overs a significant
exploration program conducted by Newmont Mining Corporation and the concession title is
expected to be granted from the Peruvian Mi nistry within the first half of 2017. The new
concession will be included in the Option Ag reement with Magellan Gold Corporation
(“Magellan”) (see Company’s news release of October 24th, 2016).
In 2016, the Company acquired three concessions adjacent to the main Niñobamba zone from
Newmont Mining Corp. and Southern Peru C opper Corp. (see Company’s news release of
September 8 th, 2016). The acquisition included an extensiv e database with results and reports
from a substantial exploration program also encompassed by the 553 hectares.
Significant exploration was completed within the new concession that covers extensive alteration
believed to be part of the same high-sulphida tion silver-gold system identified on the main
Niñobamba zone located 6.5 kilometres to the east. Four prospective areas were identified by the
previous owners of which a zone called Jorimina returned prospective precious metal results.
The Jorimina zone is situated within a collapsed caldera and the rocks are dominantly rhyolite to
dacite volcanics. Gold and silver mineralization in the zone is related to north easterly striking,
steeply dipping, quartz-galena-pyrite veins and veinlets. Surface work programs completed by
Newmont Mining included mapping, 2114 rock samp les, and induced polarization geophysics
that identified a gold anomalous area of approximately 700 metres by 1000 metres and four
strong chargeability anomalies coin ciding with gold-silver in rock anomalies. Two of the four
chargeability anomalies were defined as 680 metres by 150 metres and 700 metres by 200
metres. Highlights of the surface sampling from cha nnel rock samples from the historic database
include 17.4 metres of 3.06 grams per tonne (“ g/t”) Au and 200 metres of 0.26 g/t Au. The
Company has not completed work to verify the results of the historical surface work and
diamond drilling.
From 2009 to 2010, Newmont Mining Corp. comple ted thirteen diamond drill holes totaling
4377 metres at Jorimina testing the 4 chargeabil ity anomalies and limited detailed assays are
available from the mineralized drill-hole intercepts in this zone. In highlight from the historic
Rio Silver Inc.
40 University Avenue, Suite 603, Toronto, Ontario M5J 1T1 Canada
Tel: 416 479-9546
Website: riosilverinc.com
reports available, the better intercept from those holes, show drill-hole JOR-001 returned 72.3
metres of 1.19 grams per tonne (“g/t”) Au star ting at 53 metre depth. The true widths of
mineralization from this drilling are not yet known and the Company is compiling the historic
data in preparation for future work programs.
The Jorimina zone is located 6.5 kilometres west of the main Niñobamba mineralized zones
located on the original concessions owned by th e Company. Historical diamond drilling results
conducted by AngloGold in 2001 on the main zone included DDH-2, which reported assay
results of 87 g/t silver over a dr illed interval of 130 me tres starting from a de pth of nine metres,
and DDH-4, reporting 54 g/t silver over a drilled interval of 96 metres starting from 23 metres.
The true widths of mineralization from this drilling are not yet known.
Highlights from the trenching program conducted by Rio Silver in 2012 at the main Niñobamba
zone where the Company discovered a new gold-s ilver zone include; 56 metres of 1.03 g/t Au
and 98.9 g/t Ag in trench TR-01 and 21.77 metr es of 1.32 g/t Au and 102.46 g/t Ag in TR-04
ending in mineralization (see Rio S ilver News Release of January 14 th, 2013). These results
show that the Niñobamba property has a strong gold component, and furt her exploration is
required to determine the precious metal zonati on, alteration patterns a nd widths. The trenches
were cut approximately perpendicular to the mi neralized structure, and the true width of
mineralization cannot be determined at this time.
Rio Silver has recently entered into a Defin itive Agreement (see Company’s news release of
October 24th, 2016) that grants to Magellan an option to earn an undivided 50% interest in the
Company's Niñobamba project which now includes the newly acquired concession. Magellan is
required to spend the next $2-million (U.S.) on exploration at Niñobamba.
Rio Silver’s CEO, Jeffrey Reeder, stated: "We are extremely pleased to acquire by application
this new area adjoining our extensive land package. By acquiring this new area, the extent of the
mineralization on our land has now expanded to over 6 kilometres in an east-west direction.
More importantly, the gold and silver mineraliz ation and alteration system present in the
Niñobamba area is now consolidated into one land package. We plan on aggressively exploring
the extensive high-sulphidation system with our partner Magellan in 2017.”
Ryan Grywul, P.Geo., Vice Presid ent of Exploration, and a qua lified person as defined in
National Instrument 43-101, has prepared, supe rvised the preparation, and approved the
scientific and technical disclosure contained in this news release.
ON BEHALF OF THE BOARD OF DIRECTORS OF RIO SILVER INC.
Jeffrey Reeder
Director, President and Chief Executive Officer
Rio Silver Inc.
40 University Avenue, Suite 603, Toronto, Ontario M5J 1T1 Canada
Tel: 416 479-9546
Website: riosilverinc.com
Neither the TSX Venture Exchange nor its Regulation Services Provider accepts
responsibility for the adequacy or accuracy of this release.
This news release includes forward-looking statements that are subject to risks and uncertainties. All statements
within, other than statements of historical fact, are to be considered forward looking. Although the Company
believes the expectations expressed in such forward-look ing statements are based on reasonable assumptions, such
statements are not guarantees of future performance and actual results or developments may differ materially from
those in forward-looking statements. Factors that could cause actual results to differ materially from those in
forward-looking statements include market prices, exploita tion and exploration successes, continued availability of
capital and financing, and general economic, market or bu siness conditions. There can be no assurances that such
statements will prove accurate and, therefore, readers are advised to rely on their own evaluation of such
uncertainties. We do not assume any ob ligation to update any forward-lookin g statements except as required by
applicable laws.
For more information contact:
Jeff Reeder, President and CEO Steve Brunelle, Executive Co-Chairman
Tel: (647) 302-3290 Tel: (416) 479-9546
Website: www.riosilverinc.com