VANCOUVER, BC / ACCESSWIRE / July 29, 2024 / Highlander Silver Corp. (CSE:HSLV) (the "Company" or "Highlander Silver") is pleased to announce the start of field activities at the San Luis gold-silver project located in Ancash Department of central Peru (the "San Luis Project").
The San Luis project which the Company acquired in May 2024, has Historical Measured & Indicated mineral resources of 348,000 ounces (oz) of gold (Au) grading 22.4 g/t Au, and 9,003,300 oz silver (Ag) grading 578.1 g/t Ag. There are multiple targets for growth on the >230 km² San Luis Project given limited and focused historical drilling, open extensions to resources, and undrilled targets supported by highly anomalous (> 4 g/t Au) trenching and rock samples. The San Luis Project has yet to be systematically explored with many structures that have not yet been sampled providing further exploration potential, therefore the Company's initial exploration program comprises geological mapping and sampling to develop targets for growth and discovery before more focused exploration on the highest priority targets.
(See "San Luis Historical Mineral Resource" below for further details.)
A qualified person has not done sufficient work to classify the historical estimate as a current mineral resource and the Company is not treating the historical estimate as a current mineral resource.
The Company also announces that Fabian Baker has resigned as a director of the Company to pursue other opportunities. The Company would like to thank Mr. Baker for his valuable contributions during his tenure and wishes him success in his future endeavors. In connection with his resignation, Mr. Baker has voluntarily cancelled a total of 450,000 stock options of the Company exercisable at prices of $0.60 and $0.55 per share. In consideration for cancellation of his options, the Company will issue Mr. Baker 146,923 common shares.
Highlander Silver President and CEO, David Fincham stated, "We are excited to have begun geological mapping and sampling at San Luis. This means that our technical team is now focusing on unlocking what we believe to be the tremendous discovery potential at the project. We look forward to providing future updates as we explore the property and further develop our understanding of the geology and targets. Also, on behalf of the Board of Directors I would like to thank Fabian Baker for his support and dedication in getting Highlander to this stage and wish him all the best for the future."
Finally, pursuant to a consulting agreement with the Company's President and CEO, David Fincham, the Company will issue a bonus of 75,000 common shares of the Company to Mr. Fincham for meeting certain performance targets regarding capital raises since his appointment as President and CEO.
The common shares of the Company issued as disclosed in this news release will be subject to a four-month hold period from the date of issue under applicable securities laws.
San Luis Historical Mineral Resource
The historical mineral resource is included in a Technical Report titled "Technical Report for the San Luis Feasibility Study, Ancash Department, Peru" (the "Technical Report"), with an effective date of June 4, 2010. The report was prepared as a National Instrument 43-101 - Standard of Disclosure for Mineral Projects ("National Instrument 43-101") technical report for Reliant Ventures S.A.C. and Silver Standard Resources Inc. by Mine and Quarry Engineering Services, Inc., RR Engineering, Milne & Associates, Resource Modeling Inc, Resource Evaluation Inc., and Montgomery Watson Harzag Americas Inc, and can be accessed on SSR Mining's SEDAR+ profile. The historical estimate is considered to be relevant and reliable for the purposes of the Company proceeding with the Transaction as it provides an indication of the potential significance of the San Luis Project.
The Technical Report provides details on mineral resources and reserves, as well a potential development option for the San Luis Project that considers underground mining and processing using conventional cyanide leach methods. However, the prices, costs, and development strategy and options are no longer current and need to be re-evaluated using assumptions and qualifications that are more reflective of today's environment.
Below is a summary of the historical resource estimate from the Technical Report.
The San Luis system is a volcanic hosted, low sulphidation, epithermal quartz, precious metals deposit. Gold occurs as electrum and silver is present as acanthite, electrum, and other silver sulphosalts.
The Ayelen vein is the better of the known vein structures with more than 85% of the historical mineral resource derived from this single structure. Trenching and diamond drilling have traced this structure along a NNW strike for over 700 meters, with a steep (80º) down dip extension of more than 300 meters. True thicknesses of individual vein segments vary from tens of centimeters to more than 10m, with an average width of 1.5m to 3.0m.
Mineral resource models were developed based on samples obtained from 96 surface trenches (947m) and 136 drill holes (22,354m). Capping was used to reduce the influence of erratic high-grade values. Block grades were estimated using one-meter composites and inverse distance weighting. Estimated blocks were classified as either Measured, Indicated or Inferred mineral resources based on distance to samples. For the Ayelen vein, blocks within 15 meters of surface trenches were classified as Measured. Ayelen vein blocks within 25m of sample data were classified as Indicated. The remaining estimated Ayelen blocks were classified as Inferred. An average dry density value of 2.61g/cm3 determined from 193 bulk density measurements was used for the resource calculation. The resulting historical mineral resource is shown in the table below.
Historical Mineral Resource Summary
Category | Tonnes | Average grades | Contained Metal | ||
Au (g/t) | Ag (g/t) | Au (Oz) | Ag (Oz) | ||
Measured | 55,000 | 34.3 | 757.6 | 61,000 | 1,345,100 |
Indicated | 429,000 | 20.8 | 555.0 | 287,000 | 7,658,200 |
Measured & Indicated | 484,000 | 22.4 | 578.1 | 348,000 | 9,003,300 |
Inferred | 20,000 | 5.6 | 270.1 | 3,600 | 174,900 |
Notes:
The historical mineral resources are reported using a 6.0g/t Au equivalent cutoff grade. The gold equivalent calculation assumed a gold to silver price ratio of 65:1, and metal recoveries were not considered.
The historical measured, indicated and inferred mineral resources use categories as defined by the Canadian Institute of Mining, Metallurgy and Petroleum CIM Definition Standards on Mineral Resources and Mineral Reserves
A qualified person has not done sufficient work to classify the historical estimate as a current mineral resource and the Company is not treating the historical estimate as a current mineral resource. Additional work including some re-sampling of historical intervals and a review of the geological model, is ongoing to verify the historical resource estimate.
Qualified Person
All scientific and technical information contained in this news release has been reviewed and is approved by Graeme Lyall (FAusIMM Nº224791), non-executive Director at Highlander Silver Corp, who serves as the qualified person (QP) under the definitions of National Instrument 43-101.
About Highlander Silver
Highlander Silver Corp., backed by the Augusta Group, Lundin Family members & affiliates and Eric Sprott, is a mineral exploration company focused on the discovery of exceptional silver-gold-polymetallic projects in the Central Andes, leveraging the team's significant technical and operational experience in Peru and South America more widely. Currently the Company is developing the La Estrella and San Luis projects in central Peru. The Company is listed on the Canadian Securities Exchange ("CSE") under the ticker symbol HSLV and additional information about Highlander Silver and its mineral projects can be viewed on the Company's SEDAR+ profile at (www.sedarplus.ca) and its website at www.highlandersilver.com.
Neither the CSE nor the Canadian Investment Regulatory Organization accepts responsibility for the adequacy or accuracy of this news release.
For further information, please contact:
David Fincham
Chief Executive Officer
Highlander Silver Corp.
(604) 283 7630
info@highlandersilver.com
Forward - Looking Information
Certain information contained in this news release constitutes "forward-looking information" under Canadian securities legislation. This includes, but is not limited to: the Company granting shares to Mr. Fincham and Mr. Baker, and the Company's plans regarding field activities at the San Luis Project. Such forward looking information or statements can be identified by the use of words such as "anticipates", "plans", "suggests", "targets" or "prospects" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "will" be taken, occur, or be achieved. Forward-looking information involves known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of the Company and/or its subsidiaries to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking information. Such factors include, among others, general business, economic, competitive, political and social uncertainties, uncertainty relating to the geologic potential of the project, and risks relating to the Company. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that could cause actions, events or results to differ from those anticipated, estimated or intended. Forward-looking information contained herein are made as of the date of this news release. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The Company undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change, except as required by applicable securities laws. Accordingly, the reader is cautioned not to place undue reliance on forward-looking information.
SOURCE: Highlander Silver Corp.
View the original press release on accesswire.com
