RIO Silver Provides Update ON Palta Dorada GOLD-Silver-Copper Project, PERU
RIO SILVER PROVIDES UPDATE ON PALTA DORADA GOLD-SILVER-COPPER PROJECT, PERU
Vancouver, British Columbia – July 6, 2020 – Rio Silver Inc . ("Rio Silver" or the "Company") (TSX.V: RYO) is
pleased to announce that the Company has been notified by its partner, Peruvian Metals Corp. (“Peruvian Metals”) ,
that Peruvian Metals plans to initiate an exploration and bulk sampling program on the high grade Au-Ag-Cu Palta
Dorada project (“Palta Dorada” or the “Property”) early in the third quarter. The Company signed a Memorandum of
Understanding (“MOU”) with Peruvian Metals in early January 2020 (see The Company’s news release January 9 th)
to jointly explore the Property by conducting a detailed sampling and mapping program along with a bulk sampling
campaign. Under the MOU, Peruvian Metals is required to provide the upfront capital to start the program and has
also informed Rio Silver that permits have been approved to extend underground workings at the main exploration
target on the property. Extracted mineralized material from the underground exploration will form the bulk sampling
program.
The Property, located in the Ancas h Mining Department in Northern Peru , 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 gold -silver mineralization and exploration model is considered to be “Intrusion -Related Gold
Vein System” similar to gold systems in Peru’s gold rich Pataz Mining Region, Nasca -Ocona Gold Belt and 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
exposure is observed to have a strike length of over 800 metres and is open along strike in both directions. Artisinal
workings expose portions of the Main Structure including a 53-metre-deep shaft where seven chip samples were
taken at various depths from quartz vein containing sulphides. 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 these samples from the quartz-sulphide vein 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 tak en
from very small workings over a strike length of approximately 480 meters. All samples were strongly oxidized and
returned 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 these samples from the oxidized quartz vein 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 howe ver one sample was taken from a mineral sack ready
for shipment to a toll mill and contained oxidized quartz material that returned 14 g/t Au and 74.4 g/t Ag.
Peruvian Metals 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
by extending the underground workings both la terally and vertically. Permits have been submitted and approved to
conduct underground work which will also result in bulk sampling of the mineralized material. The underground work
will greatly aid in the understanding of the mineralized structures and c an be followed by underground drilling. The
COVID-19 restrictions imposed by the government at this time do not yet allow the Company to commence
underground work. It is expected work will begin in the next phase of reopening of the Peruvian Economy.
Metallurgical work performed by Procesmin Ingenieros Laboratories from a composite sample from mineral ready for
shipment by the previous owner had a head grade of 23.2 g/ t Au, 29.0 oz/ t Ag and 4.95% Cu. Metallurgical work
showed that two concentrates can be produced. The first and more valuable concentrate graded 125.6 g/t Au, 4,808
g/t Ag and 24.41% Cu. A second Au -pyrite concentrate was also produced and graded 11.5 g/t Au, 565 g/t Ag and
2.90% Cu. Sales from metal concentrates produced from the bulk sampling activity will be shared between the
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
for processing the bulk samples. The 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 is responsible for the permits necessary to explore the
property and to extract bulk samples. Chris Verrico the CEO of Rio Silver states, “Having recently purchased this
tremendous asset and with the recent strength in gold prices, we rema in excited to see Palta Dorada’s non -dilutive
advancement underway with a seasoned in -country operator motivated to perform . Any r eturns from the bulk
sampling campaign from processing this high-grade vein rock at Peruvian’s nearby custom milling plant, will bring
mutual benefit to both groups and help to advance our 100% owned Ninobamba project in Southern Peru.
Ninobamba is a world class medium/high sulfidation epithermal gold/silver deposit where $US 9 million in previous
exploration and feasibility work has been completed and one that rivals the potential of any similarly endowed deposit
being forwarded in Peru, to our knowledge”.
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 Rio Silver
Rio Silver Inc. is a Canadian Exploration and Mine Development company. Our business is to develop our 100%
owned Ninobamba project and to unlock the tremendous potential for shareholder value identified from the previous
$10 million spent by Newmont at the Jorimina Zone and o thers. Our own recently commissioned & independently
constructed ‘exploration potential” model for Ninobamba Main has identified more world class development potential.
Benefits are also soon to materialize from the carried development of the our new Palta Dorada Au Ag project,
focusing on a near term revenue stream. For more information, please visit:
https://www.riosilverinc.com/
For more information contact:
Christopher Verrico, President, CEO
Tel: (604) 762-4448
Email: [email protected]
Website: https://www.riosilverinc.com/
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX
Venture Exchange) 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 forwa rd-looking
statements are based on reasonable assumptions, such statements are not a guarantee 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, exploitation and explorati on successes, continued availability of capital and financing, and general
economic, market or business 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 obligation to update any forward-looking statements except
as required by applicable laws.