Silver Dollar Resources Inc. (CSE:SLV)(OTCQX:SLVDF)(FSE:4YW) (‘Silver Dollar’ or the ‘Company’) is pleased to report underground sample assay results and preliminary geologic modeling of existing high-grade drill results in support of an exploration and mining strategy shift from open pit to underground at its 100%-owned La Joya Silver (Cu-Au) Project (the ‘Property’) in the state of Durango, Mexico.
Figure 1: La Joya plan view showing mineralized areas and location of underground sampling.
A total of 16 channel samples were collected from the historic La Embotelladora mine workings, showing mineralization localized in ENE and NNE structural zones. Sample R-300 returned 2,753 grams per tonne (g/t) silver equivalent (AgEq) over 0.4 metres (m) representing the NNE trending zone. Sample R-291 returned 328 g/t AgEq over 0.4m representing the ENE structural zone (Table 1). These data combined with existing drilling results are aiding in the Company’s ongoing strategy of transitioning La Joya from an open pit to an underground project by confirming high grade mineralization localization in a network of prospective structures. Ongoing geologic modeling will focus on validating this thesis through re-focused exploration planning.
Photo 1: Underground sampling of the historic La Embotelladora Mineworkings.Figure 2: Plan view showing recent channel sample assay results and existing drilling results.
|
Sample ID |
Width (m) |
Ag g/t |
Au g/t |
Cu g/t |
Pb g/t |
Zn g/t |
AgEq g/t |
|
R-289 |
0.4 |
2 |
0.0 |
387 |
26 |
171 |
6 |
|
R-290 |
0.6 |
5 |
0.3 |
464 |
17 |
158 |
21 |
|
R-291 |
0.4 |
166 |
0.2 |
23,110 |
43 |
153 |
328 |
|
R-292 |
1.1 |
11 |
0.1 |
1,900 |
14 |
186 |
26 |
|
R-293 |
0.7 |
4 |
0.4 |
606 |
13 |
145 |
23 |
|
R-294 |
0.6 |
2 |
0.0 |
254 |
9 |
153 |
5 |
|
R-295 |
0.6 |
2 |
0.1 |
448 |
9 |
163 |
7 |
|
R-296 |
0.85 |
5 |
0.1 |
457 |
369 |
1,620 |
13 |
|
R-297 |
0.8 |
5 |
0.1 |
689 |
292 |
4,440 |
18 |
|
R-298 |
0.3 |
1 |
0.1 |
367 |
11 |
156 |
6 |
|
R-299 |
0.85 |
26 |
0.0 |
2,160 |
20 |
204 |
41 |
|
R-300 |
0.4 |
1,800 |
0.6 |
139,860 |
1,340 |
4,550 |
2,753 |
|
R-301 |
0.95 |
148 |
0.1 |
13,870 |
36 |
234 |
244 |
|
R-302 |
0.32 |
34 |
0.5 |
416 |
15 |
129 |
57 |
|
R-303 |
0.4 |
9 |
1.1 |
460 |
4 |
182 |
54 |
|
R-304 |
0.26 |
3 |
0.2 |
549 |
58 |
364 |
15 |
Table 1: Assay results from underground sampling campaign.
Silver equivalent is calculated using the following metal prices in USD: Au $1,750/oz, Ag $22/oz, Pb $1.25/lb, Zn $1.50/lb, Cu $4.30/lb. Recoveries of Au 66%, Ag 93%, Pb 87%, Zn 84%, Cu 70% historically reported from Pan American Silver’s La Colorada mine and Southern Silver’s Cerro Minitas mine (Cu only) have been used in the AgEq calculation, and are assumed to be comparable to anticipated recoveries at La Joya.
Figure 3: La Joya preliminary numerical model of AgEq trended to apparent E-W structural network.
Silver Dollar has also completed preliminary numerical modeling of existing drillhole assay data to identify additional high-grade mineralization. Numerical models were trended using preliminary vein modeling, which focused on a series of emerging E-W trends. Ongoing geologic modeling will incorporate other local trends, including a NNE structural trend, and the impact of stratigraphic-structural intersections on plunging mineral trends.
‘With silver, copper, and gold prices all reaching record highs this year, it’s an opportune time to re-conceptualize La Joya from a new underground perspective,’ said Greg Lytle, President of Silver Dollar. ‘The goal of our geological modeling is to assess La Joya’s underground potential based on a compilation of all historical data, consider hypothetical underground mining methods, and identify high-priority exploration targets to add value to the Project.’
Procedure, quality assurance/quality control and data verification:
All rock samples were collected, described, photographed, and bagged on-site. The samples were delivered by Silver Dollar staff to ActLabs in Zacatecas, Mexico for analysis. ActLabs is ISO 9001:2015 certified. Rock samples were crushed, pulverized and screened to -80 mesh at the lab, prior to analysis. Gold is analyzed by a 30g Fire Assay with AA (atomic absorption spectroscopy) finish, then gravimetric finish if greater than 10ppm Gold. Silver and 34 other elements were analyzed using a four-acid digestion with an ICP-OES (Inductively Coupled Plasma Optical Emission spectroscopy) finish. Silver, lead, zinc, and copper over limits were re-assayed using an ore-grade four-acid digestion with ICP-AES (Inductively coupled plasma atomic emission spectroscopy) finish. Control samples comprising certified reference samples and blank samples were systematically inserted into the sample stream and analyzed as part of the Company’s quality assurance and quality control protocol.
About the La Joya Property:
La Joya is an advanced exploration stage property consisting of 15 mineral concessions totaling 4,646 hectares and hosts the Main Mineralized Trend (MMT), Santo Nino, and Coloradito deposits.
The previous operator, Silvercrest Mines, released a Preliminary Economic Assessment (PEA) NI 43-101 Technical Report on the La Joya Property in December 2013. The PEA included a mineral resource estimate (MRE) on the MMT and Santo Nino deposits (See Historical MRE Table) that was based on 89 holes totaling 30,085 m of Silvercrest’s drilling between 2010 and 2012 (See Historical MRE Model). The MRE was reported to conform to CIM definitions for resource estimation; however, a qualified person of Silver Dollar has not done sufficient work to classify the historical resource, and the Company is not treating it as a current mineral resource. Independent data verification and an assessment of the mineral resource estimation methods are required to verify the historical mineral resource.
The Property is situated approximately 75 kilometres southeast of the Durango state capital city of Durango in a high-grade silver region with past-producing and operating mines, including Silver Storm’s La Parrilla Mine, Industrias Penoles’ Sabinas Mine, Grupo Mexico’s San Martin Mine, Sabinas Mine, First Majestic’s Del Toro Mine, and Pan American Silver’s La Colorada Mine (Figure 4).
Figure 4: La Joya location and historical and operating mines in the area.
Dale Moore, P.Geo., an independent Qualified Person (QP) as defined in NI 43-101, has reviewed and approved the technical contents of this news release on behalf of the Company.
About Silver Dollar Resources Inc.
Silver Dollar is a dynamic mineral exploration company focused on two of North America’s premier mining regions: Idaho’s prolific Silver Valley and the Durango-Zacatecas silver-gold belt. Our portfolio includes the advanced-stage Ranger-Page and La Joya projects, as well as the early-stage Nora project. The Company’s financial backers include renowned mining investor Eric Sprott, our largest shareholder. Silver Dollar’s management team is committed to an aggressive growth strategy and is actively reviewing potential acquisitions with a focus on drill-ready projects in mining-friendly jurisdictions.
For additional information, you can visit our website at silverdollarresources.com, download our investor presentation, and follow us on X at x.com/SilverDollarRes.
ON BEHALF OF THE BOARD
Signed ‘Gregory Lytle’
Gregory Lytle,
President, CEO & Director
Silver Dollar Resources Inc.
Direct line: (604) 839-6946
Email: greg@silverdollarresources.com
179 – 2945 Jacklin Road, Suite 416
Victoria, BC, V9B 6J9
Forward-Looking Statements:
This news release may contain ‘forward-looking statements.’ Forward-looking statements involve known and unknown risks, uncertainties, assumptions, and other factors that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Any forward-looking statement speaks only as of the date of this news release and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise.
The Canadian Securities Exchange (operated by CNSX Markets Inc.) has neither approved nor disapproved of the contents of this news release.
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