August 24, 2017 – Vancouver, B.C. – Prospero Silver Corp (PSL.V; the "Company" or "Prospero") is pleased to provide an update on its on-going 5 month 6,950 m reconnaissance drill campaign funded by strategic partner Fortuna Silver Mines Inc. ("Fortuna"). The drill program is designed to carry out first-pass drilling of a number of Prospero's early stage projects in the world class Mexican Altiplano mineral belt.
Drilling is anticipated to begin at the 6,868 hectare El Petate project in Hidalgo State in September, pending receipt of final permits. El Petate is located 30km northwest of the historic Pachuca-Real del Monte mining district, on the western side of the Sierra Madre Oriental fold belt, within a northwest trend of historic deposits including Zimapan (Hidalgo) and La Negra (Queretaro). The Petate property is the most advanced of Prospero's projects, with drill permits about to be granted for 29 drill sites. Surface access has already been secured from the land owners. High-level epithermal alteration is exposed over a 5×4 km area with highly anomalous gold and silver hosted in extensive outcrops and float of steep to strata-bound jasperoid. The significant size of the silicified zones indicates that Petate is a robust mineralized system with additional potential to host a high-temperature carbonate-replacement type deposit at depth.
Prospero's exploration work at Petate has highlighted potential for sediment (carbonate) hosted gold and for blind carbonate-replacement bodies of manto and/or chimney type, containing Ag, Pb, Zn and ± Au similar to the Zimapan or Santa Eulalia polymetallic systems. Surface sampling by Prospero at the Apartadero target at Petate returned a best continuous channel sample of 67.5m @ 0.93 g/t Au.
The number of holes to be drilled, and the collar locations is currently being discussed with Fortuna with a total meterage anticipated of up to 2,800m. A drill collar plan will be posted on Prospero's website as soon it's available. Additional information on historic exploration results from Petate is available on Prospero's website here:
Drilling has finished for the time being at the Matorral project (See Prospero news release dated June 22, 2017). Three holes have been completed (1,371m) out of a planned 4 holes. Drilling is currently halted for a scheduled break and to allow additional interpretation of the results of alteration mineral analysis. Prospero will be carrying out age dating of samples of hydrothermal alteration clay minerals to clarify the age relationships between the hydrothermal system and host rocks.
The holes were completed on 3 different sections to test for potential epithermal precious metal mineralization beneath extensive surface outcrops of jasperoid. In each case, the initial holes were drilled to pin the dip of the controlling structures of the jasperoids between 200-300m below the surface outcrop.
No significant precious metal assay results were returned in the drilling with the exception of hole 17-01 which returned sporadic anomalous silver values from trace up to 32ppm Ag. However fluid inclusion and clay mineralogy analyses of veinlets and alteration cut in the 3 holes suggests that the hydrothermal alteration seen in the holes is still above the top of the potential productive epithermal horizon; additional deeper drilling is required to reach the boiling zone in the system.
The presence of late barren calcite in all three holes is believed to be analogous to similar calcite veins seen in the high level epithermal environments above other Mexican epithermal deposits such as Fresnillo and Pachuca. The calcite is interpreted to be related to the descent of steam-heated carbonate rich waters as the hydrothermal system begins to collapse.
A summary of the geology and alteration mineralogy encountered in each hole is given below and a drill collar plan and cross sections can be found on Prospero's web site at:
Hole PMA-17-01 (End of hole at 475m)
Oriented to cut the downward extension of structurally controlled jasperoids in the North Matorral Pit. No significant assay results were returned from the hole which was terminated at 475m in fresh purple andesites. Quartz-feldspar porphyry (QFP) was cut between 169.6 to 231.3m with some local silicification and pyritic stockwork: this is thought to be the down dip continuation of QFP mapped at surface and associated with jasperoids in the pit. The clay minerals identified in the hole (illite/montmorillonite) are compatible with a high-level epithermal environment. The presence of banded coarse crystalline quartz and coarse euhedral pyrite in the hole, combined with fluid inclusion temperatures as high as 229°C, and some anomalous geochemistry (up to 32 ppm Ag) indicate this zone could lie relatively close to the top of an epithermal ore zone. Planning is underway for a 4th hole to be drilled under PMA-17-01 to intersect the QFP at least 200 vertical meters below where it was cut in hole 1.
Hole PMA-17-02 (End of hole at 454m)
Hole 17-02 cut 2 several zones of alteration and anomalous geochemistry. Between 91m to 133m downhole, 17-02 intersected brecciated limestone with bands of massive pyrite. The lower portion of this zone, from 118m to 133m consisted of intercalated carbon-rich /carbonaceous bands and massive pyrite. The 27m zone is anomalous in Zn, Pb and As with a best intersection of 0.12% Zn over 6.7m. The presumed downward continuation of the jasperoids seen at surface on section B-B was cut between 240m to 295m. The hole cut several zones of jasperoids with anomalous silver (from trace to 5.7ppm Ag) roughly 200-250m below the surface outcrops. The hole was terminated at 454m in fresh andesites. Clay mineral analysis from the pyrite-rich zone described above show that Mg-Illite, K-illite, and montmorillonite-nontronite are the principal hypogene clay minerals, suggesting hydrothermal temperatures in the system were lower than 220°C. Rare crystalline quartz was found in the deeper parts of the hole which returned homogenization temperatures of 173°C to 185°C.
Hole PMA-17-03 (End of hole 442m)
Hole 17-03 cut intermediate volcanics along its entire length. A zone of silicification and jasperoids from 311.7m to 314.5m down hole may correspond to the downward projection of the surface jasperoids. No significant assays were received from hole 17-03.
Tawn Albinson, M.Sc., President of the Company, is a Qualified Person, as defined in NI 43-101, and is responsible for the technical content of this news release. Mr. Albinson is a Member of the American Institute of Professional Geologists and a Certified Professional Geologist (CPG) No. 11368.
About Fortuna Silver Mines Inc.
Fortuna is a growth-oriented, precious metals producer focused on mining opportunities in Latin America. The company's primary assets are the Caylloma silver mine in southern Peru, the San Jose silver-gold mine in Mexico and the Lindero gold project in Argentina.
About Prospero Silver Corp
Prospero is a Mexico-focused project generator listed on the TSX.V under the symbol PSL.V. Prospero's aim is to discover world-class precious metal projects in the major mineral belts of Mexico. The Company applies a unique blend of practical exploration experience, cutting-edge mineral deposit science, and an extensive knowledge of Mexico's geology to find new gold and silver systems. Our exploration programs are run by a small but highly-focused geological team based in Mexico.
For further information please contact:
Exec VP Business Development
Tel: 604 307 0055
Tel: 604 288 2553
Forward-Looking Statement Cautions:
This press release contains certain "forward-looking statements" within the meaning of Canadian securities legislation, relating to, among other things, drilling results. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are statements that are not historical facts; they are generally, but not always, identified by the words "expects," "plans," "anticipates," "believes," "intends," "estimates," "projects," "aims," "potential," "goal," "objective," "prospective," and similar expressions, or that events or conditions "will," "would," "may," "can," "could" or "should" occur, or are those statements, which, by their nature, refer to future events. The Company cautions that Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made and they involve a number of risks and uncertainties. Consequently, there can be no assurances that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Except to the extent required by applicable securities laws and the policies of the TSX Venture Exchange, the Company undertakes no obligation to update these forward-looking statements if management's beliefs, estimates or opinions, or other factors, should change. Factors that could cause future results to differ materially from those anticipated in these forward-looking statements include, possible, accidents and other risks associated with mineral exploration operations, the risk that the Company will encounter unanticipated geological factors, the possibility that the Company may not be able to secure permitting and other governmental clearances necessary to carry out the Company's exploration plans, the risk that the Company will not be able to raise the additional funds in the future to continue to carry out its business plans, and the risk of political uncertainties and regulatory or legal changes that might interfere with the Company's business and prospects. The reader is urged to refer to the Company's reports, publicly available through the Canadian Securities Administrators' System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com for a more complete discussion of such risk factors and their potential effects.
This news release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of any of securities of the Company in any jurisdiction in which such offer, solicitation or sale would be unlawful, including any of the securities in the United States of America. The Company's securities have not been and will not be registered under the United States Securities Act of 1933 (the "1933 Act") or any state securities laws and may not be offered or sold within the United States or to, or for account or benefit of, U.S. Persons (as defined in Regulation S under the 1933 Act) unless registered under the 1933 Act and applicable state securities laws, or an exemption from such registration requirements is available.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.