VANCOUVER, British Columbia, Feb. 11, 2025 (GLOBE NEWSWIRE) -- Zacatecas Silver Corp. ("Zacatecas Silver" or the "Company," ZAC: TSX Venture; ZCTSF: OTC Markets; 7TV: Frankfurt) is pleased to announce that it has designed a drill program to follow up on previous work at its silver projects located in Zacatecas, Mexico. The Company will now seek bids from drill contractors based on the proposed program.
The drilling plan aims to expand the current resource (see News Release dated May 30, 2023, for details) and follow up on previously drilled high-grade intercepts outside the known resource area. Drilling by the Company and previous operators has identified two significant vein systems warranting further exploration and drilling:
- Panuco Deposit: Extensive drilling and trench work at Panuco have returned high-grade silver results, including 1.25 metres at 1,440 grams per tonne silver equivalent (1,423.2 grams per tonne silver and 0.23 gram per tonne gold) (see News Release dated April 7, 2022) and 1.23 metres at 750 grams per tonne silver equivalent (723 grams per tonne silver and 0.36 gram per tonne gold) (see News Release dated February 16, 2022). On May 30, 2023, the Company announced an updated mineral resource estimate at Panuco, totaling 3.41 million tonnes at 187 grams per tonne silver equivalent (173 grams per tonne silver and 0.18 gram per tonne gold) for 20.5 million ounces of silver equivalent (19 million ounces silver and 19,200 ounces gold) (see News Release dated May 30, 2023). The vein system comprising the Panuco deposit remains open in all directions.
- El Cristo Vein System: El Cristo is the northwestern extension of the well-known Veta Grande vein and is defined by multiple vein outcrops and extensive historical workings. The Company completed an initial 28-scout-drill-hole program, whereby 22 of the 28 holes intersected silver and base metal mineralization. With a strike length exceeding three kilometres, numerous targets remain to be drilled by the company.
In addition to the two flagship deposits, Zacatecas Silver has identified two additional high-priority exploration targets:
- San Gill Breccia Zone: Located in the southern part of the main Zacatecas concessions, approximately two kilometres southwest of the Veta Grande vein, this zone features intense brecciation and quartz veining with abundant iron oxides after sulfides.
- Muleros Zone: Situated south of Panuco and north of El Cristo, this vein system extends over a three-kilometre strike length and comprises three main veins: the South Vein, North Vein, and El Rosario Vein.
CEO Comments
Zacatecas Silver CEO and Director, Eric Vanderleeuw, stated: "As we focus on advancing our silver assets, our technical team has designed a program aimed at expanding the current resource while following up on multiple high-grade intercepts drilled outside the known resource area. This is a highly prospective project with significant expansion potential, located in a top-tier silver mining jurisdiction."
Private Placement Financing
The Company is also pleased to announce the closing of its previously announced non-brokered private placement financing (see News Release dated January 20, 2025). The offering was fully subscribed, with the Company issuing 30,000,000 common shares (each, a "Share") at a price of $0.05 per Share, raising total gross proceeds of $1,500,000 (the "Offering").
The securities issued under the Offering are subject to resale restrictions under applicable securities laws, expiring on June 12, 2025. The Company paid finder's fees totaling $57,750 and issued 1,155,000 non-transferable warrants ("Finder's Warrants") to eligible finders. Each Finder's Warrant is exercisable at $0.05 per Share for a period of two years from the date of issuance.
The net proceeds from the Offering will be used to fund exploration activities at the Esperanza Gold Project and Zacatecas Silver Project, as well as for general working capital.
Eric Vanderleeuw, the Company's CEO and a director, subscribed for 1,250,000 Shares, contributing $62,500 to the Offering. This participation constitutes a "related party transaction" as defined under Multilateral Instrument 61-101 ("MI 61-101"). However, the Company expects to be exempt from formal valuation and minority shareholder approval requirements under Sections 5.5(a) and 5.7(a) of MI 61-101, as his participation does not exceed 25% of the Company's market capitalization.
Regulatory Disclaimer
The securities issued under this Offering have not been and will not be registered under the United States Securities Act of 1933, as amended. They may not be offered or sold in the United States or to U.S. persons absent registration or an applicable exemption. This news release does not constitute an offer to sell or a solicitation of an offer to buy securities in the United States.
About Zacatecas Silver Corp.
The Company has two key projects. The Esperanza Gold Project in Morelos State, Mexico and the Zacatecas Silver Project in Zacatecas State, Mexico.
Esperanza is an advanced stage, attractive low-cost, low-capital-intensity and low-technical-risk growth project located in Morelos state, Mexico. Alamos has progressed the project through advanced engineering, including metallurgical work, while also focusing on stakeholder engagement, including building community relations. The Company announced a Mineral Resource Estimate at Esperanza consisting of a Measured and Indicated Mineral Resource Estimate of 30.5 million tonnes at 0.97 g/t AuEq for 956 thousand ounces AuEq and an Inferred Mineral Resource estimate of 8.7 million tonnes at 0.98 g/t AuEq for 277 thousand ounces AuEq (see news release dated November 16, 2022).
The Zacatecas Silver Project 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 7,826 hectares (19,338 acres) of ground that is highly prospective for low-sulphidation and intermediate-sulphidation silver base metal mineralization and potentially low-sulphidation gold-dominant mineralization. The Company announced a Mineral Resource Estimate at the Panuco Deposit consisting of 2.7 million tonnes at 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 ounces AgEq (15 million ounces silver and 15,000 ounces gold) (see news release dated December 14, 2021).
The property is 25 kilometres (km) southeast 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.
On behalf of the Company
Eric Vanderleeuw
Chief Executive Officer and Director
(519) 729 2440
Qualified Person
The contents of this news release have been reviewed and approved by Chris Wilson, B.Sc. (Hons), PhD, FAusIMM (CP), FSEG, FGS, Chief Operating Officer of Zacatecas Silver. Dr. Wilson is Qualified Persons as defined by NI 43-101.
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.
