Zacatecas Silver will resume operations 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 common shares of the Company will resume trading at the opening of the market on Thursday, March 10, 2022. The shares were temporarily suspended from trading following news that Zacatecas had reached an agreement to acquire the Esperanza Project (“Esperanza”) from Alamos as described in a Zacatecas press release dated February 28, 2022.
Recent announcement of the acquisition of the Esperanza project from Alamos Gold Inc. (“Alamos”).
At the end of the transaction, Alamos will become the first shareholder of Zacatecas
Closed order books, with completed allocations, on recently announced listings $18 million funding.
In addition to Hope transaction, drilling continues on the Zacatecas silver properties following several recently announced high-grade intersections at Panuco North.
Hope is an attractive late-stage, low-cost, low-capital-intensive, low-technical-risk growth project located in Morelos State, Mexico. Alamos advanced the project through advanced engineering, including metallurgical work, while also focusing on stakeholder engagement, including building community relationships.
Hope is a high-grade oxidized gold deposit with upgradable potential, with a historical measured and indicated resource of 34,352,000 tonnes at 0.98 grams per tonne (g/t) gold and 8.09 g/t gold silver for 1,084,000 ounces of gold and 8,936,000 ounces of silver and inferred resources of 718,000 tonnes at 0.80 g/t gold and 15.04 g/t silver for 18,000 ounces of gold and 347,000 ounces of silver (see below for details).
To date, significant core and reverse circulation drilling has been completed in Hope gold project, resulting in a total of 389 drill holes for 69,716 metres. Four targets adjacent or close to the historic resource have been identified to expand the historic resource. The project is also home to seven largely untested regional exploration targets that also warrant drill testing.
Mineralization at Hope gold project is associated with the intrusion of a stock of granodiorite composition in the carbonate rocks of the Guerrero–Morelos platform, especially the rocks of the Xochicalco training. Spatially related to intrusive contact with carbonate rocks, there are varying degrees of skarn and marble development. Intruded by the granodioritic stock are the limestones of the Xochicalco formation of Aptian (Early Cretaceous) age which have beds 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 intrusive.
Based on previous preliminary assessments by the previous owners, the Company expects the project to be suitable for a conventional open pit two-stage crushing heap leach operation. The crushed material would be routed to the leach pad and irrigated with a dilute cyanide solution. Gold will be recovered from stock solutions using carbon adsorption, subsequent electrowinning and in-situ smelting to produce gold and silver bullion.
The Company plans to complete an extensive work program to prepare an updated resource estimate, undertake economic studies on the project as well as drill on nearby exploration targets.
The total transaction amount is approx. $60 million (United States), with most payments not being made until significant milestones toward commercial production have been achieved. The initial consideration is to $5 million (United States) in cash, $10 million (United States) in Zacatecas shares and a flow of money in favor of Alamos estimated at $6 million (United States) (see Zacatecas press release dated February 28, 2021 for transaction details).
After announcing the transaction, Zacatecas announced a DAC $15 million financing via negotiated private placement, then increased financing in CAD $18 million due to strong investor demand (see Zacatecas press release dated March 4, 2022 for details of this increased funding).
The content of this press release has been reviewed and approved by Dr. Wilson, BSc (Honours), PhD, FAusIMM (CP), FSEG, Chief Operating Officer of Zacatecas Silver. Dr. Wilson is a Qualified Person as defined by National Instrument 43-101 and is responsible for all technical information contained in this press release.
Alamos resource estimate
Alamos reported in its most recent annual information form a resource estimate of a measured and indicated resource of 34,352,000 tonnes at 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 inferred resources 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 it to be a historical resource for the purposes of National Instrument 43-101. Resource blocks have been defined using dimensions of 10 meters (m) by 10 meters by five meters. Grade estimation was performed using the ordinary kriging method on capped composites. An additional step in the estimation strategy was the use of the dynamic anisotropy technique in by Vulcan deployment options. This additional capacity allows for a more realistic result of the spatial distribution of the estimated grade because it follows the folded shape of the deposit. The assumptions used in the resource include the following metal prices: gold price of $1,400 (US) per ounce (oz) silver price $22 (United States) per ounce. The resource assumed the following economic assumptions: recovery of 60.4% at 0.2 g/t to 71.9% at 1.6 g/t for gold, 25% for silver, $2.60-mining costs per ton, 64 cents– general and administrative costs per ton, $4.20– machining costs per ton and a pit slope of 45 degrees. The Company considers the resource relevant due to its identification and the modeling of the Hope to pay.
The Company has not performed sufficient work to classify the resource as a current mineral resource or mineral reserves and the Company is not treating the historical estimate as a current mineral resource or mineral reserve. Although the resource estimate is considered reliable, the Company will resample a portion of the drill core in order to make a new resource estimate. Also, additional data verification including re-surveying of some diamond drill collars; reviewing drill core graphic logs, comparing these logs with the remaining half-cut core and cross-checking certain entries in the geolog agonist database; and a verification of the original assay certificates against the assay and drill hole database.
About Zacatecas Silver Corp.
the Zacatecas the silver property is located in Zacatecas State, Mexicoin the very promising Fresnillo Silver Belt, which has produced over 6.2 billion ounces of silver. The Company holds 7,826 hectares (ha) (19,338 acres) of land highly prospective for low sulphidation and intermediate silver sulphidation base metal mineralization and potentially gold-dominant low sulphidation mineralization. At December 15, 2021, Zacatecas announced a mineral resource estimate at Panuco composed 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 of silver and 15,000 ounces of gold).
The property is 25 kilometers (km) southeast of MAG Silver Corp’s Juanicipio mine. and Fresnillo PLC. Fresnillo mine. The property shares common boundaries with the Pan American Silver Corp. claims. and El Orito, which is owned by Endeavor Silver. There are four main high-grade silver target zones in the Zacatecas concessions: the Panuco deposit, Muleros, El Cristo and San Manuel-San Gill. The property also includes El OroEl Orito, La CanteraMontserrat, El Penon, San Judas and San Juan base metal vein targets in silver. These targets are relatively unexplored and will be subject to rapid reconnaissance.
On behalf of the company,
Chairman and Chief Executive Officer and Director
The information in this press release contains forward-looking statements 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 important factors, many of which are beyond their respective control. These factors include, among others, the risks and uncertainties associated with Zacatecas Silver’s limited operating history, its proposed exploration and development activities on the 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 by the forward-looking information. Except as required by applicable securities laws, Zacatecas Silver does not undertake 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 policies of the Exchange) accepts responsibility for the adequacy or accuracy of this release.
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SOURCE Zacatecas Silver Corp.