Silver Dollar Reports 1,778 g/t Silver Equivalent Over Two Metres in Drill Core from the La Joya Silver Project in Durango, Mexico
FOR IMMEDIATE RELEASE
Silver Dollar Reports 1,778 g/t Silver Equivalent Over
Two Metres in Drill Core from the La Joya Silver
Project in Durango, Mexico
Phase 3 drilling results not previously reported include the highest sampled Silver,
Copper and Gold grades to date from the Main Mineralized Trend
VANCOUVER, BC – August 25 th, 2020 – Silver Dollar Resources Inc. (CSE: SLV) (“Silver
Dollar” or the “Company”) is pleased to report highlights from the most recent diamond drilling
program at the La Joya Silver Project in Durango, Mexico. Under t h e t e r m s o f t h e D e f i n i t i v e
Agreement between Silver Dollar and First Majestic Silver Corp, (First Majestic), Silver Dollar has
been granted an exclusive option to acquire up to a 100% interest in the La Joya silver-copper-gold
(Ag-Cu-Au) property that include s the Main Mineralized Trend (M MT), Santo Nino and
Coloradito deposits (see news release of August 10th, 2020 and Figure 1).
The following results from the Phase 3 drilling program, comple ted by SilverCrest Mines Inc.
(SilverCrest) between February 17 and March 29, 2014, were not previously reported. Records of
the Phase 3 program were obtained by Silver Dollar through the file-sharing arrangement under the
Definite Agreement with First Majestic. Announcement of the dri lling program was included in
the final Management Discussion and Analysis issued by SilverCr est, dated November 12, 2014,
for the three and nine months ended September 30, 2013, which reads:
“La Joya Project third quarter highlights: SilverCrest completed a 17 hole in-fill drilling program
(2,698 metres). The program provides valuable information that will enable SilverCrest to advance
towards an updated resource model in H1 2015.”
The updated resource model was never completed due to First Majestic’s acquisition of SilverCrest
that was completed on October 1, 2015.
The Phase 3 drilling program targeted infill drilling along the Main Mineralized Trend (Figure 2)
and was successful in confirmi ng significant mineralization in 15 of 17 holes (two holes were
drilled for geotechnical logging and no assay records have been located). The results provide Silver
Dollar with further confidence in the extent of the mineralized system and verify several key
features of the polymetallic Ag-C u-Au deposit identified in the National Instrument (NI) 43-101
Preliminary Economic Assessment Technical Report (the “PEA”), with Effective Date of October
21, 2013, and Released Date of December 5, 2013 (refer to SEDAR) including:
Confirmed presence of high-grade mineralization with 2014 highest assay grades reported
for Ag of 1,915 grams per tonne (g/t) over 0.45 metre (hole LJ DD14-116 from 26.4 to
26.85 m), Cu of 20.4 % over 0.55 metre (hole LJ DD14-116 from 86 to 86.55 m), and Au
of 33.5 g/t over 1.0 metre (hole LF DD14-120 from 211.15 to 212.15 m),
Presence of discrete high-grade stockwork and structurally controlled veining (SCSV)
style mineralization such as in hole LJ DD14-116 that intercepted 2.0 metres (from 86 to
88 m) grading 723.5 g/t Ag, 8.97 % Cu and 0.09 g/t Au, or 1,778.1 g/t silver equivalent
(AgEq),
Continuous broad intervals of mineralization hosted in replacement manto style
mineralization, such as in hole LJ DD14-114 that intercepted 66.4 metres (from 27.1 to
93.5 m) grading 43.5 g/t Ag, 0.27 % Cu and 0.38 g/t Au, or 98.21 g/t AgEq, and
Outcropping and near-surface mineralization, such as in holes LJ DD14-109 that
intercepted 21.92 metres (from 1.8 to 23.72 m) grading 31.5 g/t Ag, 0.36 % Cu and 0.95
g/t Au, or 130.4 g/t AgEq.
Drilling results from the eastern extent of the (approximately east-west striking) SCSV revealed
excellent exploration potential for extension of the deposit further to the east where hole LJ DD14-
116 intercepted two broad mineralized zones grading 75.7 g/t Ag, 0.55 % Cu, and 0.06 g/t Au, or
143.9 g/t AgEq, over 25.1 metres (from 19.1 to 44.2 m), and 106.2 g/t Ag, 1.20 % Cu, and 0.29 g/t
Au, or 264.0 g/t AgEq, over 23.1 metres (from 82.4 to 105.5 m).
Notably, hole LJ DD14-116 was drill ed near to the previous hole s LJ DD12-79 (48.8 metres
grading 53.1 g/t Ag, 0.37 % Cu, and 0.06 g/t Au, from 102.2 to 150.8 m) and LJ DD12-86 (45
metres grading 135.5 g/t Ag, 1.14 % Cu and 0.11 g/t Au, from 67 to 112 m) along the interpreted
Tecolote structure, which remains open to the east. This eastern area is a primary exploration target
representing a 750-metre-wide ( approximate horizontal distance) gap where no drilling has been
undertaken and is flanked on the east by the Santo Nino Deposit.
Assay highlights from drill hole core samples are summarized in the following table:
Hole ID From To Width
(m)
Au
g/t
Ag
g/t
Cu
%
AgEq *
(values
from 2013
PEA)
AgEq **
(current
values)
LJ DD14-109 1.8 23.72 21.92 0.73 32.7 0.36 100.1 118.6
Including 1.8 6.2 4.4 3.45 12.3 0.10 193.3 230.8
120.6 125.75 5.15 0.10 112.1 0.57 166.1 184.7
LJ DD14-110 10.3 22.6 12.3 0.36 99.8 0.71 179.0 204.7
including 16.8 21.3 4.5 0.56 189.6 1.34 333.1 380.3
98.2 104.8 6.6 0.05 47.1 0.15 62.4 67.5
LJ DD14-111 34.95 35.9 0.95 0.12 210.2 2.11 397.4 463.9
56.9 58.6 1.7 0.04 139.7 0.41 177.5 190.8
143 149.35 6.35 0.38 55.8 0.25 96.3 107.9
162.4 165.35 2.95 0.29 57.0 0.11 80.8 87.0
LJ DD14-112 88.9 91.3 2.4 0.04 95.5 0.51 141.4 157.6
Hole ID From To Width
(m)
Au
g/t
Ag
g/t
Cu
%
AgEq *
(values
from 2013
PEA)
AgEq **
(current
values)
LJ DD14-113 93.75 96.4 2.65 0.06 108.8 0.56 160.0 177.9
146.9 149.5 2.6 0.09 47.1 0.25 72.8 81.4
LJ DD14-114 13.7 14.9 1.2 0.09 192.9 2.58 419.7 500.8
27.1 93.5 66.4 0.38 43.5 0.27 85.9 98.2
including 67.7 70.85 3.15 1.26 219.0 1.48 409.6 468.2
131.7 138.85 7.15 0.30 26.6 0.14 53.2 60.4
160.4 178.1 18.1 0.26 6.9 0.15 32.6 39.8
LJ DD14-115 30.85 36.95 6.1 0.06 233.8 1.24 343.4 382.5
including 34.15 35.15 1 0.17 734.0 3.75 1,064.5 1,182.2
44.9 68.3 23.4 0.34 31.7 0.12 58.9 66.0
74.8 79.2 4.4 0.40 48.6 0.26 91.0 103.0
134.8 137.05 2.25 0.41 90.4 0.84 182.5 212.5
LJ DD14-116 19.1 44.2 25.1 0.06 75.7 0.55 126.2 143.9
including 19.1 28.2 9.1 0.04 185.1 1.37 305.2 348.2
and 26.4 28.2 1.8 0.11 602.3 4.64 1,006.4 1,151.1
82.4 105.5 23.1 0.29 106.2 1.20 223.9 264.0
including 86 88 2 0.09 723.5 8.97 1499.2 1,778.1
LJ DD14-117 61 80.8 19.8 0.36 29.5 0.36 78.4 93.2
including 74.5 75.8 1.3 0.88 219.0 2.05 439.1 511.3
106.8 108.6 1.8 0.85 46.7 0.53 134.2 158.9
LJ DD14-118 54 58 4 0.14 72.8 0.35 109.5 121.6
64 104.2 40.2 0.05 32.9 0.49 77.3 93.0
including 68 74.3 6.3 0.06 61.7 1.35 181.2 223.8
and 93.4 97.7 4.3 0.12 79.3 1.00 171.2 203.3
132.75 149.85 17.1 0.44 14.8 0.16 50.9 60.4
LJ DD14-119 63.15 74.8 11.65 0.06 82.7 0.99 171.1 202.5
including 72.4 73.8 1.4 0.26 387.1 4.62 797.4 943.3
91.4 95.5 4.1 0.28 35.2 0.34 78.4 91.8
119 122.5 3.5 0.62 44.3 0.45 114.0 134.2
LJ DD14-120 39.5 43.1 3.6 0.05 91.6 0.49 136.5 152.3
59.65 68.35 8.7 0.14 59.1 0.27 89.2 98.9
including 67.3 68.35 1.05 0.08 375.2 1.09 472.8 507.3
96.25 151.1 54.85 0.10 36.5 0.23 61.5 69.7
including 130.2 134.6 4.4 0.17 171.5 1.41 301.7 347.2
199.5 217.15 17.64 2.30 31.7 0.12 157.6 184.5
including 208.5 212.15 3.65 10.43 52.3 0.22 592.6 703.6
LJ DD14-121 Geotechnical hole, no assays
LJ DD14-122 68.7 70.55 1.4 0.18 225.4 1.95 402.1 464.3
Hole ID To From Width
(m)
Au
(g/t)
Ag
(g/t)
Cu
%
AgEq *
(values
from 2013
PEA)
AgEq **
(current
values)
90.9 93.5 2.6 1.53 5.5 0.10 90.6 109.0
99.9 101.6 1.7 1.88 32.6 0.32 154.2 183.0
129.25 131.2 1.95 0.04 33.7 0.37 67.3 79.1
150.8 152.75 1.95 0.37 46.6 0.36 96.2 111.0
LJ DD14-123 Geotechnical hole, no assays
LJ DD14-124 116.4 122.65 6.25 0.20 94.0 0.77 170.5 196.5
LJ DD14-125 26.75 37.05 10.3 0.02 34.1 0.02 37.4 38.4
120.45 126.6 6.15 0.07 67.2 0.11 80.2 84.3
200.6 201.85 1.25 0.07 121.7 0.54 171.5 188.9
Notes:
- lengths are downhole length
- the reported assay values hav e been validated by SLV using laboratory certificates and digital drill hole database, however,
SLV has not yet reviewed drill core nor verified the drill hole survey information
- all intercept lengths are reported as downhole length
- * AgEq as calculated in the La Joya NI 43-101 PEA Technical Re port (Effective Date October 21, 2013) which used metal
prices of US$ 24/oz silver, US$ 1,200/oz gold, and US$ 3/lb copper, and equal metallurgical recoveries.
- ** AgEq as calculated using cu rrent metals price assumptions of US$ 17.50/oz silver, US$ 1,500/oz gold, and US$ 3/lb
copper, along with preliminary and conceptual metallurgical recoveries reported in the PEA of 85% Ag, 85% Cu and 60% Au.
“While we knew the Phase 3 drilling was completed at La Joya, we were exceptionally pleased to
learn the program returned the highest-grade silver, copper and gold hits to date from the Main
Mineralized Trend,” said Mike Romanik, President of Silver Dollar. “A target that is of particular
interest is the 750-metre gap betw een the Main Mineralized Tren d and the Santo Nino Deposit,
where no drilling has been undertaken. It demonstrates the trem endous potential for resource
expansion and will be a priority in our initial exploration campaign.”
Sample Analyses and QA/QC
Sampling of the drill core was conducted along the entire lengt h of each hole below overburden
(excepting hole LJ DD14-117, where sampling started at 34.55 m downhole depth) generally at 1
metre sample lengths, up to a maximum of 5.5 metres, except within visually mineralized intervals
where sample intervals respected geological contacts down to a minimum interval of 0.10 metre
downhole length. A total of 2,596 drill core samples were collected.
The samples were submitted to the Inspectorate preparation lab based in Durango, Mexico, and
shipped to Acme Laboratories (bot h labs part of the Bureau Veri tas Group Companies), based in
Vancouver, Canada for analysis. Samples were crushed and split from which 250-gram subsamples
were pulverized to 200 mesh.
All samples were submitted for 33 trace elements inductively co upled plasma emission
spectroscopy (ICP-ES) (using aqua regia digestion), and 30-gram fire assay (FA) (using lead
fusion) with atomic absorption spectrometry (AAS) analyses for gold. Where gold assays exceeded
the upper FA-AAS detection limit of 10 g/t, or where silver ass ays exceeded the upper ICP-ES
detection limit of 100 g/t, then analysis was conducted for both gold and silver using fire assay with
a gravimetric finish. Any copper, lead or zinc assay exceeding the upper ICP-ES detection limit of
10,000 ppm triggered re-analysis of all three elements at higher grade ICP-ES detection limits.
Additionally, 279 samples were submitted to the laboratory for quality assurance and control
(QA/QC). These were comprised of 246 blank samples and 33 certified standard reference samples.
No duplicates samples appear to have been collected as part of this campaign. The QA/QC results
have been reviewed and no concerns have been identified.
Garry Clark, P.Geo., of Clark Exploration Consulting, a "Qualif ied Person" as defined in NI 43-
101, has reviewed and approved the technical content in this press release.
About the La Joya Project
Under the terms of the Definitive Agreement between Silver Doll ar and First Majestic (see news
release of August 10th, 2020), Silver Dollar has been granted an exclusive option to acquir e an
initial 80% interest, and if exercised, a second option to acqu ire an additional 20% interest for an
aggregate 100% interest in First Majestic’s La Joya silver-copp er-gold property. The Property,
located in the south-eastern portion of the State of Durango in the Mexican Silver Belt (Figure 3),
consists of 15 mineral concessions totalling 4,646 hectares and hosts the Main Mineralized Trend
(MMT), Santo Nino and Coloradito deposits.
The Property is situated approxima tely 75 kilometres (km) direc tly southeast of the state capital
city of Durango in a prolific mineralized region with past-producing and operating mines including
Grupo Mexico's San Martin Mine, Industrias Penoles' Sabinas Min e, Pan American Silver's La
Colorada Mine and First Majestic's La Parrilla and Del Toro Sil ver Mines. Access and
infrastructure near the Property are considered excellent with highway, rail and power lines nearby.
About Silver Dollar Resources Inc.
Silver Dollar Resources Inc. is a mineral exploration company f ocused on creating shareholder
value by finding and developing economic precious and base metal deposits. Having completed its
initial public offering in May 2020, the Company trades on the Canadian Securities Exchange under
the symbol "SLV". Silver Dollar’s projects are located in two o f the prolific mining jurisdictions
in the world and include the adva nced exploration/development s tage La Joya Silver Project in
Durango, Mexico, and the discovery-stage Pakwash Lake and the L onglegged Lake properties in
the Red Lake Mining District of Ontario, Canada. The Company has an aggressive growth strategy
and is actively reviewing projec ts in mining-friendly jurisdict ions internationally for potential
acquisition.
ON BEHALF OF THE BOARD
Signed “Michael Romanik”
Michael Romanik,
President, CEO & Director
Direct line: (204) 724-0613
Email: [email protected]
Silver Dollar Resources Inc.
Suite 200, 551 Howe Street,
Vancouver, BC V6C 2C2
Forward-Looking Statements:
This news release contains forwa rd-looking statements and forwa rd-looking information (collectively, "forward-
looking statements") within the meaning of applicable Canadian securities legislation. All statements, other than
statements of historical fact, included herein including, without limitation, statements regarding the exercise of the first
or second option to acquire a 100% interest in the Property fut ure capital expenditures, anticipated content,
commencement, and cost of exploration programs in respect of the Property , are forward-looking statements.. Often,
but not always, forward looking information can be identified by words such as "pro forma", "plans", "expects", "will",
"may", "should", "budget", "sc heduled", "estimates", "forecasts ", "intends", "anticipates", "believes", "potential" or
variations of such words including negative variations thereof, and phrases that refer to certain actions, events or results
that may, could, would, might or will occur or be taken or achieved.
In making the forward-looking statements in this news release, the Company has made certain assumptions, including
without limitation, that market fundamentals will result in sustained precious and base metals demand and prices, the
receipt of any necessary permits , licenses and regulatory appro vals in connection with the future exploration of the
Property, that the COVID-19 glob al pandemic will not affect the ability of the Company to conduct exploration, the
availability of financing on suitable terms to make the cash payments required by the Definitive Agreement..
Forward-looking statements involve known and unknown risks, unc ertainties and other factors which may cause the
actual results, performance or achievements of the Company to differ materially from any future results, performance
or achievements expressed or implied by the forward-looking statements. Such risks and other factors include, among
others, s of the Company to obtain sufficient financing to fund the cash payments and expenditures required by the
Definitive Agreement,, delays in obtaining governmental and reg ulatory approvals, permits or financing, changes in
laws, regulations and policies affecting mining operations, the Company's limited operating history, currency
fluctuations, title disputes or claims, and environmental issues and liabilities.
Readers are cautioned not to pl ace undue reliance on forward-lo oking statements. The Company undertakes no
obligation to update any of the forward-looking statements in this news release except as otherwise required by law.