Zacatecas Silver resumes trading on Thursday, March 10, 2022
VANCOUVER, BC, March 8, 2022 /PRNewswire/ — Zacatecas Silver Corp. (“Zacatecas” or the “Company”) (TSX Venture: ZAC) (OTC Markets: ZCTSF) (Frankfurt: 7TV) is pleased to announce that the Company’s common stock has resumed public trading Thursday, March 10, 2022. Share trading was temporarily halted after it was announced that Zacatecas had entered into an agreement to acquire the Esperanza Project (“Esperanza”) Alamos as described in a dated Zacatecas press release February 28, 2022.
- Recent announcement of the acquisition of the Esperanza Project from Alamos Gold Inc. (“Alamos”).
- After completion of the transaction, Alamos becomes the largest shareholder of Zacatecas
- Order books closed, allocations closed, recently announced 18 million dollars Financing.
- In addition to Esperanza Transaction drilling will continue on the Company’s property Zacatecas Silver properties following several recently reported high-grade intersections at Panuco North.
Esperanza is an attractive, low-cost, capital-intensive and technically low-risk growth project at an advanced stage Morelos Status, Mexico. Alamos has advanced the project through advanced engineering, including metallurgical work, while also focusing on stakeholder engagement, including community relationship building.
Esperanza is a high-grade oxide gold deposit with scalable potential, with a historical Measured and Indicated resource of 34,352,000 tonnes grading 0.98 grams per tonne (g/t) gold and 8.09 g/t silver for 1,084,000 ounces of gold and 8,936. 000 ounces of silver and Inferred Resource of 718,000 tonnes grading 0.80 g/t gold and 15.04 g/t silver for 18,000 ounces of gold and 347,000 ounces of silver (see details below).
Significant core and reverse circulation drilling has been completed to date Esperanza Gold Project resulting in a total of 389 drill holes for 69,716 metres. Four targets adjacent to or near the historical resource have been identified to expand the historical resource. The project also hosts seven regional exploration targets that are largely untested and also merit drill testing.
mineralization at the Esperanza Gold Project is related to the intrusion of a reserve of granodiorite composition into the carbonate rocks of the Guerrero–Morelos platform, especially the rocks of the Xochicalco Formation. Spatially associated with the intrusive contact with the carbonate rocks are skarn and marble development of varying degrees. Intruded by the granodioritic stock are the limestones of the Xochicalco Formation of the Aptian age (Early Cretaceous) that have strata of variable thickness from very thin to medium. The primary mineralization consists of gold and to a lesser extent silver associated with skarn zones spatially related to the intrusion.
Based on previous preliminary assessments completed by previous owners, the Company believes that the project would be amenable to a conventional open pit, two-stage crushing heap leach operation. Crushed material would be conveyed to the leaching pad and irrigated with dilute cyanide solution. Gold is mined from saturated solutions using carbon adsorption, followed by electromining and on-site smelting to produce gold and silver dore bars.
The Company plans to undertake an extensive program of work to complete an updated resource estimate, conduct economic studies on the project and drill nearby exploration targets.
The total consideration of the transaction is approximately 60 million dollars (USA), with most payments only being made once significant steps towards commercial production have been made. The first consideration consists of 5 million dollars (USA) in cash, 10 million dollars (USA) a Zacatecas Stocks and a stream of silver in favor of Alamos estimated at 6 million dollars (USA) (see Zacatecas press release dated February 28, 2021 for transaction details).
After the transaction is announced Zacatecas announced a CAD 15 million dollars Funded through brokered private placement and then increased funding to CAD 18 million dollars due to strong investor demand (see Zacatecas press release dated March 4, 2022 details of this increased funding).
The content of this press release was prepared by Dr. Wilson, BSc (Honours), PhD, FAusIMM (CP), FSEG, Chief Operating Officer of Zacatecas Silver reviewed and approved. dr Wilson is a Qualified Person as defined by National Instrument 43-101 and is responsible for all technical information in this press release.
Alamos Resource Estimate
Alamos reports in its most recent Annual Information Form a resource estimate of a measured and indicated resource of 34,352,000 tonnes grading 0.98 g/t gold and 8.09 g/t silver for 1,083,366 ounces of gold and 8,936,201 ounces of silver and an inferred resource of 718,000 tonnes at 0.80 g/t gold and 15.04 g/t silver for 18,375 ounces of gold and 347,192 ounces of silver. The Company considers this a historical resource as defined by National Instrument 43-101. Resource blocks with dimensions of 10 meters (m) have been defined 10 m through five m. Estimation of grades was performed using standard kriging on clipped composites. An additional step in the estimation strategy was the use of the dynamic anisotropy technique in volcano opportunities for development. This additional capability allows for a more realistic result of the spatial distribution of the estimated grade as it follows the folded shape of the deposit. The assumptions used in the resource include the following metal prices: Gold price from $1,400 (US) per ounce (oz) and silver price of $22 (US) per ounce. The following economic assumptions were used for the resource: recoveries from 60.4 percent at 0.2 g/t to 71.9 percent at 1.6 g/t for gold, 25 percent for silver, $2.60-Mining cost per ton, 64 cents-general and administrative costs per ton, $4.20– Milling costs per ton and a pit slope of 45 degrees. The Company considers the resource relevant based on its identification and modelling Esperanza Deposit.
The Company has not done sufficient work to classify the resource as a current mineral resource or mineral reserve and the Company is not treating the historical estimate as a current mineral resource or mineral reserve. Although the resource estimate is believed to be reliable, the Company will resample a portion of the drill core in order to complete a new resource estimate. In addition, additional data review including re-logging of selected diamond drill hole collars; reviewing graphical drill core logs, comparing these logs to remaining half-cut core and cross-checking selected geological log entries in the agonist database; and a reconciliation of the original sample certificates with the sample and drill hole database.
About Zacatecas Silver Corp.
the Zacatecas Silver Property is located in Zacatecas Status, Mexicowithin the very promising Fresnillo Silver belt that has produced over 6.2 billion ounces of silver. The Company holds 7,826 hectares (ha) (19,338 acres) of land that is highly prospective for low- and intermediate-sulphidation silver-base metal mineralization and potentially gold-dominated, low-sulphidation mineralization. At December 15, 2021, Zacatecas announced a mineral resource estimate Panuco Deposit consisting of 2.7 million tonnes grading 187 grams per tonne (g/t) silver equivalent (AgEq) (171 g/t silver (Ag) and 0.17 g/t gold (Au)) for 16.4 million AgEq ounces (15 million ounces of silver). and 15,000 ounces of gold).
The property is located 25 kilometers (km) southeast of MAG Silver Corp.’s Juanicipio Mine. and Fresnillo PLC Fresnillo mine. The property shares common boundaries with Pan American Silver Corp.’s claims. and El Orito, owned by Endeavor Silver. There are four main high-grade silver target areas within the Zacatecas Concessions: the Panuco Deposit, Muleros, El Cristo and San Manuel-San Gill. The property also includes El OroEl Orito, La Canteramonser council, El Penon, San Judas and San Juan Silver base metal vein targets. These targets are relatively unexplored and will be the focus of quick reconnaissance.
In the name of the company,
Chief Executive Officer and Director
The information contained in this press release contains forward-looking statements that are based on assumptions as of the date of this press 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 control. These factors include, among others: risks and uncertainties related to Zacatecas Silver’s limited operating history, proposed exploration and development activities on Zacatecas’ properties and the need to comply with environmental and governmental regulations. Accordingly, actual and future events, conditions and results could differ materially from the estimates, beliefs, intentions and expectations expressed or implied in the forward-looking information. Except as required by applicable securities laws, Zacatecas Silver undertakes no obligation to publicly update or revise any forward-looking information.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the Exchange’s policies) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Zacatecas Silver Corp.