Zacatecas Silver To Commence Trading on TSX Venture Under Symbol ZAC
Zacatecas Silver To Commence Trading on TSX Venture
Under Symbol ZAC
VANCOUVER, BC
,
Feb. 26, 2021
/CNW/ - Zacatecas Silver Corp. ("Zacatecas Silver" or the "Company") (TSXV: ZAC) is pleased
to announce its common shares will commence trading on the TSX Venture Exchange on
March 2, 2021
under the symbol "ZAC".
Highlights:
Significant historic inferred silver resource in a world class silver mining region which is open along strike and at
depth.
Work starting immediately to target resource confirmation and expansion at the Panuco Deposit, and exploration and
target generation at the Muleros, El Cristo and San Manuel-San Gill prospects.
Excellent regional exploration potential including El Cristo
— the
northwest extension of the Veta Grande Vein that
has now been traced on the properties for 3km at surface but has had very limited previous exploration.
Strong cash position and management with a track record of shareholder wealth creation via exploration,
development and mining.
The Zacatecas Silver property is located in Zacatecas State,
Mexico
, within the highly prospective Fresnillo Silver Belt, which has
produced over 6.2 billion ounces of silver. The company holds 7826 ha (19,338 acres) of ground that is highly prospective for low
and intermediate sulphidation silver-base metal mineralization and potentially low sulphidation gold-dominant mineralization.
The property is 25 km south-east of MAG Silver Corp.'s Juanicipio Mine and Fresnillo PLC's Fresnillo Mine. The property shares
common boundaries with Pan American Silver Corp. claims and El Orito which is owned by Endeavour Silver. There are four main
target areas within the
Zacatecas
concessions (Figure 1):
The
Panuco
deposit
is located in the north of the concessions is the most advanced prospect. It has an historic inferred
mineral resource of 19,472,901 ounces Ag Eq. (cut-off 100 g/t Ag Eq.) from 3,954,729 tonnes at 153.2 g/t Ag Eq (136 g/t Ag,
0.14 g/t Au, 0.012% Pb, 0.11% Zn). Mineralization at the
Panuco
remains open along strike and down dip. See "Historical
Resource Estimate Information" set forth below.
Muleros
is characterized by three sub-parallel, silver-gold-base metal mineralized veins which can be traced over a strike
length of at least 3 km.
El Cristo
represents the NW strike extension of the
Veta Grande
vein system which is reported to have produced over 200
Moz Ag. El Cristo comprises a number of silver-base metal veins that define an extensional jog of approximately 3 km in strike
length and
500 m
of width.
San Manuel-San Gill
is a relatively unexplored target with northwest-southeast oriented silver-base metal veins. An
800 m
long, north-south oriented hematic breccia with elevated gold tenor, is a robust gold target.
The Property also includes the
El Oro
, El Orito,
La Cantera
, Monserrat, El Peñón,
San Judas
and
San Juan
silver-base metal
vein targets. These targets are relatively unexplored and will be the focus of rapid reconnaissance review.
Figure 1 - Zacatecas Silver Corp Concessions and Target Areas (CNW Group/Zacatecas Silver Corp.)
Panuco Deposit
The
Panuco
deposit consists of three prominent northwest-southeast trending, southwest dipping veins and vein breccias, that have
been collectively traced over a 4 km strike length (Figure 2). Additional vein splays and jogs are present.
A total of 75 HQ diameter diamond holes (
23,444 m
) have been drilled, of which 18 holes (
4556 m
) were drilled in 2009, 14 holes
(
3548 m
) were drilled in 2010, and 43 holes (
15,339 m
) were drilled in 2011. Intercepts included:
# Hole PA09-01: 174.46 to
176.25 m
(
1.79 m
) grading 0.32 g/t Au, 517.31 g/t Ag, 0.43% Pb and 2.32% Zn
# Hole PA10-30: 333.24 to
335.23 m
(
2.79 m
) grading 0.37 g/t Au, 391.92 g/t Ag, 0.03% Pb and 0.04% Zn
# Hole PA11-68: 625.00-
626.50 m
(
1.50 m
) grading 1.05g/t Au, 668g/t Ag, 0.01% Pb and 0.01% Zn
Figure 2 - Panuco Vein System (CNW Group/Zacatecas Silver Corp.)
The three veins that were drilled — Panuco NW, Panuco Central and Tres Cruces — remain open at depth and along strike. These
are high priority drill targets. A number of sub-parallel veins of shorter strike length, vein splays and dilational jogs are also robust
drill targets. The potential strike extension of Panuco Central and Panuco NW under Quaternary cover to the northwest requires
further investigation.
Zacatecas Silver plans to immediately complete a 10,000 metre drill program on the vein system outside of the historical resource
estimate.
The Company has already completed an extensive verification resampling program of historical drill core, equating to approximately
15% of sample intervals used in the historical resource estimate at
Panuco
. This data is presently being used to remodel the
historical resource.
Given that there has been no metallurgical testwork of
Panuco
mineralization, and historical, non-optimized
Veta Grande
recoveries
were used in the historical Panuco Resource calculation, Zacatecas Silver has commissioned SGS Lakefield to conduct a bench-
scale metallurgical study of
Panuco's
mineralization.
Muleros Vein System
The Muleros vein system is defined by three principal vein structures — the South Vein, the North Vein (
Sabino Vein
) and the El
Rosario Vein (Figure 3). The South and North Veins dip between 55-80° to the southwest and the Rosario Vein dips 70-80° to the
northeast. Veins vary from <1 to
5 m
in true thickness. The system has a strike length of at least 2.5 km before veins dip under
cover the northwest. Muleros represents a very robust exploration target.
Between 2007 and 2008, a previous operator completed 37 HQ diamond drill holes totalling approximately
6704 m
. The historical
drill program was designed to test veins to a vertical depth to about 100 meters and the deeper potential of the system remains
untested. With over 2.5 strike kilometres of mapped veins, at least three sub-parallel silver-base metal mineralized veins, and a
dilutional area to the NW.
Zacatecas Silver considers the historic shafts to the southeast of Muleros to be highly significant. In this area, there is an extensive
cover of recent gravel and vein outcrop is absent. Yet, the historical shafts indicate that the south vein extends at least 1 km to the
southeast. This has never been drill tested and is an important exploration target.
Gold grades in several of the historical Muleros drill intercepts are higher than other silver-base metals veins in the area. This may
reflect the hybrid intermediate-low sulphidation nature of the Muleros vein system making for an attractive target.
Figure 3 - Muleros Vein System (CNW Group/Zacatecas Silver Corp.)
El Cristo Vein System (NW Extension of the Veta Grande Vein System)
The El Cristo vein system comprises at least 8 northwest-southeast trending, subparallel veins which define a dilational sigmoidal
complex that is up to
600 m
wide and which coalesces to the northwest and southeast. Veins extend over a strike length of at least
2.5 km (Figure 4). Dip varies from vertical to 60° to the northeast to southwest. El Cristo is the northwest extension of the
Veta
Grande
vein system.
Silver and base metal mineralization is hosted in brecciated veins, and crustiform and colloform banded quartz-carbonate veins, that
vary in thickness from 10 cm to
7 m
.
In 2010, the previous operator completed 8 HQ diamond drill holes totalling approximately
2854 m
. Silver and gold assays were of
a moderate tenor — lead and zinc significantly elevated. For this reason, the veins at El Cristo were modelled as the basal part of a
low sulphidation epithermal system and not drilled further.
The historical drill holes do not provide an effective test of an epithermal vein system that has a strike length of over 2.5 km,
comprises multiple veins over a width of at least
600 m
associated with a sigmoidal dilational zone, and is the northwest strike
extension of the
Veta Grande
vein system. Moreover, given the presence of hybrid intermediate-low sulphidation deposit types at
Zacatecas
, base metal signatures — are not on their own — a reliable indicator of depth in the system.
El Cristo is a significant system with multiple high priority drill targets. The Company is planning an initial orientation drill program of
2500 m
ahead of an extensive second phase drill program.
Figure 4 - El Cristo System (CNW Group/Zacatecas Silver Corp.)
San Manuel-San Gil Vein System
The San Manuel-San Gill target is relatively unexplored. Quartz-carbonate-sulphide veins of between 10 cm to >
7 m
wide, trend
northwest-southeast over a strike length of at least 2 km. Individual veins are between 400 to
1400 m
long and splay to the
southeast where they intersect a north-south trending hematitic breccia (Figure 5). The breccia has a strike length of approximately
800 m
, is up to
40 m
wide, and is most likely vertical.
Between 2006 and 2013, the previous operator completed nine HQ diameter diamond drill holes were completed in 2011 for a total
of
3176 m
.
The north-south orientation of the breccia is highly significant as gold-rich epithermal veins within the district are generally oriented
north-south. This is supported by the hole MG 11-01 intersect. Only four holes of the nine drilled at
San Manuel
targeted the
breccia. It is an extremely robust exploration target and significant further work is required.
The Company will immediately commence a soil and rock-chip geochemical program, ahead of a 1,500 metres of diamond drill
program.
Figure 5 - San Manuel-San Gill System (CNW Group/Zacatecas Silver Corp.)
Regional History
Discovery of silver in the
Zacatecas
area occurred in 1546. By 1548, the Spaniards had begun production from three mines; the
Albarrada Mine on the
Veta Grande
vein system, and the San Bernabe Mine and Los Tajos Mine on the Mala Noche vein system.
By the late 1800's silver from the Zacatecas Mining District accounted for 60% of the value of all Mexican exports making it one of
Mexico's
wealthiest and largest districts of the era. According to Ponce & Clark (1988), the Mexican Geological Survey estimated
that approximately 23,236,499 kg (747,076,679 Troy oz) of silver was produced from the Zacatecas Mining District between 1548
and 1987.
Corporate Highlights
Zacatecas Silver completed its financing prior to filing a prospectus, supported by top institutional investors and mining
professionals, and did not raise funds concurrent with this go public event.
Under the Company's last completed financing, Mr. Eric Sprott, through 2176423 Ontario Ltd, a corporation which is beneficially
owned by him, holds 2,000,000 shares and is one of the largest shareholders of Zacatecas Silver.
Zacatecas Silver is well funded with over $9 million in cash to carry out an extensive drill program onsite including at the Panuco
Deposit, at the
Veta Grande
vein extension target and on other high priority exploration targets.
As at listing, Zacatecas Silver has 52,362,715 common shares issued and outstanding, no warrants and 5,100,000 incentive stock
options.
Zacatecas Silver is led by an experienced team of mining professionals including:
James Hutton
, Chairman of the Board
Bryan Slusarchuk, CEO and Director
Dr.
Chris Wilson
, COO and Director
Jonathan Richards
, CFO and Director
John Lewins
, Director
Charles Hethey
, Director
The Company has entered into 12 month investor relations agreements with Highland Contact (controlled by Adam Ross), based
in Canada. Highland Contact will be paid CAD $7,000 per month and has been granted 450,000 incentive stock options with a term
of 5 years and an exercise price of $0.50. Highland will coordinate all North American investor relations for the company including
creation of materials, advertising as well as handling all incoming investor relations communications for a period of twelve months.
Highland Contact is a corporate communications firm that assists public and private companies with corporate communication and to
develop a capital markets strategy. The investor relations agreement is subject to the approval of the TSX Venture Exchange.
Qualified Person
The technical content of this news release has been reviewed, verified and approved by Dr. Chris Wilson, B.Sc (Hons), PhD,
FAusIMM (CP), FSEG. Chief Operating Officer and Director of Zacatecas Silver, a qualified person as defined by NI 43-101.
On behalf of the Company
Bryan Slusarchuk
Chief Executive Officer and Director
Historical Mineral Resource Estimate Information
In 2019 Santacruz Silver Mining Ltd. completed an updated historical resource estimate as set forth in the technical report titled
"Technical Report – Veta Grande Project, Zacatecas State,
Mexico
" dated 20
th
of
August 2019
. The report was prepared by
Van
Phu Bui
, P.
Geo and Michael O'Brien
, P. Geo, and filed on
www.sedar.com
("2019 Panuco Historical Resource"). The 2019 Panuco
Historical Resource reported 3,954,729 tonnes at 153 g/t Ag Eq. (136 g/t Ag, 0.14 g/t Au, 0.012 % Pb, 0.11% Zn) for a total of
19,472,901 ounces Ag Eq. (cut-off 100 g/t Ag Eq.). The 2019 Panuco Historical Resource used "inferred mineral resources", which
is a category set forth under CIM Definition Standards for Mineral Resources & Mineral Reserves adopted on
May 10, 2014
.
The 2019 Panuco Historical Resource was calculating using 75 drill collars, 866 down hole surveys and 2,607 assayed samples. A
surface trench database totalling 183 trenches with 1,813 samples was used. Resource blocks were defined using with
dimensions of
20 m
along strike and down dip, and
1 m
across strike. Grades for gold, silver, lead and zinc were interpolated into
blocks using the following estimation algorithms: central — ordinary kriging and NW and
Tres Cruces
— inverse distance squared.
Assumptions used in the 2019 Panuco Historical Resource include the following metal prices: gold price of US
$1,350
/oz, silver
price of US
$16
/oz, lead price of US
$0.90
/lb and zinc price of US
$1.10
/lb. The 2019 Panuco Historical Resource assumed
recovering similar to the Veta Grande System being: gold at 52.2%, silver at 62.1%, lead at 87.9% and zinc at 78.6%. The
Company considers the 2019 Panuco Historical Resource relevant due to its identification and modelling of the
Panuco
deposit.
The Company has not done sufficient work to classify the 2019 Panuco Historical Resource as a current mineral resource or mineral
reserves, and the Company is not treating the historical estimate as current mineral resources or mineral reserves.
Although the
historical resource estimate is considered reliable, 8% of the drill core intervals used in the resource calculations was re-sampled
and submitted these to ALS for independent assay. Further, additional data verification including resurveying of select diamond drill
holes collars; review of graphic drill core logs, comparison of these logs with remaining half-cut core, and a cross-check of select
geological logs agonist database entries; and a check of original ALS assay certificates against the assays and drill hole database.
Remodelling of the current
Panuco
resource is ongoing pending receipt of check sample assays.
Forward-Looking Statements
Information set forth in this news release contains forward-looking statements that are based on assumptions as of the date of this
news release. These statements reflect management's current estimates, beliefs, intentions and expectations. They are not
guarantees of future performance. Zacatecas Silver cautions that all forward looking statements are inherently uncertain and that
actual performance may be affected by many material factors, many of which are beyond their respective control. Such factors
include, among other things: risks and uncertainties relating to Zacatecas Silver's limited operating history, its proposed
exploration and development activities on is Zacatecas Properties and the need to comply with environmental and governmental
regulations. Accordingly, actual and future events, conditions and results may differ materially from the estimates, beliefs,
intentions and expectations expressed or implied in the forward-looking information. Except as required under applicable
securities legislation, Zacatecas Silver does not undertake to publicly update or revise forward-looking information.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the
Exchange) accepts responsibility for the adequacy or accuracy of this release.
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For further information:
Adam Ross, Investor Relations, Direct: (604) 229-9445, Toll Free: 1(833) 923-3334, Email:
CO: Zacatecas Silver Corp.
CNW 08:00e 26-FEB-21