VANCOUVER, April 18, 2018 /CNW/ - Goldplay Exploration
Ltd. (TSXV: GPLY - the "Company" or "Goldplay"), is pleased to
announce that the Company has entered into an option agreement to
acquire a 100% interest in the San Marcial Project ("San Marcial")
in Sinaloa State, Mexico from a
subsidiary of SSR Mining Inc. (NASDAQ: SSRM) (TSX: SSRM) ("SSR
Mining").
San Marcial consists of 1,250 hectares, located south of the
La Rastra and Plomosas historical
mines and 30 km from the Company's 100% owned El Habal Project in
the historic (gold-silver) Rosario Mining District, Sinaloa, Mexico (Figure 01). San Marcial is an
attractive near surface high grade silver, zinc and lead project
with a historical National Instrument 43-101 – Standards of
Disclosure for Mineral Projects ("NI 43-101") resource
completed by Silvermex Resources Inc. ("Silvermex") (1) and with
immediate opportunity for resource expansion.
Resource
|
Grade
|
Contained
Metal
|
Category
|
Tonnes
|
Ag (g/t)
|
Zn (%)
|
Pb (%)
|
Ag M(oz)
|
Zn M(lbs)
|
Pb M (lbs)
|
Indicated
|
3,755,893
|
149.20
|
0.67
|
0.36
|
18.0
|
29.9
|
55.3
|
Inferred
|
3,075,403
|
44.21
|
0.51
|
0.29
|
4.4
|
19.5
|
34.7
|
|
|
(1)
|
The above historical
NI 43-101 resource estimate is based on a cut off of 30 g/tAg for
open pit and 80 g/t Ag for underground resource classification
completed by Micon International Ltd. for Silvermex on November 5,
2008. The historical resource is based on 27,349 meters of drilling
in 30 core drill holes completed by Silvermex and previous
operators over a strike length of 600 meters and vertical extent of
250 meters. A qualified person has not done sufficient work to
verify and to classify the historical estimate as current mineral
resources and the Company is not treating the historical estimate
as current mineral resources. Further work must be carried out to
verify all historic information before a resource estimate is
possible, and there can be no assurance that when established, that
any such resource would be economically recoverable. The NI 43-101
was filed on SEDAR on November 21, 2008 under the name of Silver
Ore Mining Corporation, the predecessor of
Silvermex.
|
Key Highlights:
- Resource Expansion Potential: The existing historical NI
43-101 resource estimation exhibits significant exploration upside
as it only comprises 600 m of
mineralized trend being open along strike and down dip along an
additional 3.5 km (Figure 02).
- Presence of high grade mineralization near surface
supporting opportunity for an open pit project: Significant
intercepts near the surface from previous drill programs such as ,
21.2 meters @721g/t (True width) (SM-13 ), 93.3 meters (true width)
grading 104.2 g/t silver (SM-8), 53.95 meters (true width) grading
235 g/t silver (SM-4), 17.61 meters (true width) grading 282 g/t
silver (SM-5), 12.68 meters (true width) grading 540 g/t silver
(SM-9) and 17.5 meters (true width) grading 621 g/t silver
(SM-13).
- Positive Preliminary Historical Metallurgical Results:
Historical preliminary metallurgical results from oxide and sulfide
samples from San Marcial have indicated column leach tests
recoveries in the range of 80% for a 72-hour leach period and
preliminary flotation test work in drill core composite samples
reporting recoveries in the range of 90%.
- Significant Exploration Potential: San Marcial exhibits
significant exploration upside supported by historical regional
exploration programs completed by previous operators with
identification of 14 exploration targets like San Marcial inside
the concessions. Some of these exploration targets consists of
historical shallow pits, caved shafts and historical underground
workings in areas with extensive hydrothermal alteration hosted by
major regional structures.
- Accessible Location with Attractive Infrastructure: San
Marcial is 12km from the Plomosas Project (First Majestic Silver
Corp., TSX:FR) and the La Rastra
historical mine and mill facilities on an unpaved road. It is a
historical mining district with availability of power and
attractive topography for future developments.
Option Agreement Terms:
The option will be exercisable upon the Company paying SSR
Mining an aggregate of $2,575,000 in
cash, issuing an aggregate of 3,500,000 common shares of the
Company, incurring an aggregate of $3,000,000 in exploration expenditures on San
Marcial in tranches over a three-year period, granting SSR Mining a
NSR royalty and the grant of equity participation rights over a
one-year period, according to the following:
|
Cash
|
Shares
|
Exploration
Expenditures
|
Due within 5 business
days of receipt of TSXV approval (the "Approval Date")
|
$75,000
|
1,250,000
|
-
|
Due by the first
anniversary of the Approval Date
|
-
|
-
|
$500,000
|
Due by the second
anniversary of the Approval Date
|
-
|
750,000
|
$1,000,000
|
Due by the third
anniversary of the Approval Date
|
$2,500,000
|
1,500,000
|
$1,500,000
|
Total
|
$2,575,000
|
3,500,000
|
$3,000,000
|
The Company must also on or before the third anniversary of the
Approval Date complete an updated resource estimate report
conforming to the standards of NI 43-101. The updated resource
estimate ("Resource Estimate") will form the basis for the NSR
royalty to be granted and the purchase price related to the
buy-back rights. The Resource Estimate will include Inferred
Mineral Resources, Indicated Mineral Resources and Measured Mineral
Resources (as such terms are defined in the CIM Definitions
Standards for Mineral Resources and Mineral Reserves, as amended
from time to time).
The NSR royalty granted to SSR Mining will be structured in
accordance with the following commodity structure and based on the
Resource Estimate:
Resource
Estimate
|
Commodity
|
% NSR
|
<= 500,000
oz
|
Au (Eq)
|
0.5%
|
500,000 oz to 1.0
Moz
|
Au (Eq)
|
0.75%
|
1.0 Moz to 2.0
Moz
|
Au (Eq)
|
1.0%
|
>2.0Moz
|
Au (Eq)
|
1.5%
|
The Company may purchase the NSR royalty from SSR Mining in
accordance with the following table:
Resource
Estimate
|
Commodity
|
Buy Back Rights
($)
|
<= 500,000
oz
|
Au (Eq)
|
$500,000
|
500,000 oz to 1.0
Moz
|
Au (Eq)
|
$1,250,000
|
1.0 Moz to 2.0
Moz
|
Au (Eq)
|
$2,000,000
|
>2.0Moz
|
Au (Eq)
|
(Incremental Resource
Greater than 2.0Moz/ 500,000 oz) * $500,000
|
The Company grants SSR Mining the right to purchase common
shares in any future equity financing that the Company may complete
during the one-year period following the Approval Date. This grant
of participation rights will provide SSR Mining the right to
purchase that number of common shares being offered by the Company
in such financing as is equal to SSR Mining's then percentage
interest in the issued share capital of the Company, for the
consideration and on the same terms and conditions as offered to
the other potential subscribers under such financing.
The approval of the option agreement is subject to the receipt
of all necessary regulatory approvals, including the approval of
the TSXV.
Marcio Fonseca, Goldplay's
Chief Executive Officer, stated, "Located only 30 km from the
Company's El Habal Project, the addition of San Marcial to our
portfolio in the Rosario Mining District is an excellent complement
to our strategy of consolidating a highly prospective 100% owned
portfolio in a world class district. We are delighted with this
opportunity and the addition of SSR Mining as a shareholder. The
near surface high grade historical resource allied with preliminary
historical metallurgical data encourages the Company to continue
exploration aiming to expand the resource along the 3.5 km trend.
The historical exploration results delineating 14 targets for
precious metals explorations represent an upside exploration
potential in San Marcial for future discoveries. The Company looks
forward to advancing exploration programs at San Marcial".
Geology and Mineralization of the San Marcial Project
The mineralization at San Marcial is typical of the low
sulphidation, epithermal systems hosted near the contact of the
Tertiary, Upper and Lower Volcanic units in the Sierra Madre
Occidental Geologic Province. This Province hosts many important
precious metal mines and prospects along its 1,500 km long, 250 km
wide extent.
The geology at San Marcial comprises Upper Volcanic group with
basal conglomerates, rhyolites and dacites, predominantly at the
higher elevations on the NE portion of San Marcial. The basal
conglomerate lies on the erosional surface above the Lower
Volcanic. Unconformable underlying the Upper Volcanic group is
Lower Volcanic group with predominance of dacites occurring at
lower elevations. The unconformity is generally a mineralization
control guide for future exploration as evidenced in the historical
NI 43-101 resource model.
The known precious metals prospects at San Marcial are hosted on
what appears to be a set of northwest trending fault structures
with a 60-northeast dip which is close to the prospective
unconformity (Figure 03). Along the 3.5 km mineralized trend, there
are highly altered hydrothermal breccias, conglomerates and
relatively fresh dacite porphyry intrusive. Faulting is an
important structural feature related to the silver gold zinc lead
copper mineralization and the intersection of east-west with
northwest structures are considered the most prospective areas for
exploration at San Marcial.
There are two main mineralized zones (upper and lower), located
on the center of the mineral concession and both outcropping at
surface (Figure 03). Both mineralized zones and associated host
rocks exhibits fracture filling and typical hydrothermal textures
of epithermal deposits. There are local brecciation hosting
mineralized zones. The mineralized zones are continuous along
strike with the mineralization separated into two portions along
the 600 m strike length of the
historical resource estimate.
The historical exploration programs completed by previous
operators have discovered prospective zones with gold values at
surface associated with quartz stickwork hosted in silicified and
crackled andesites. Similar gold mineralization style has been
identified in the San Marcial historical NI 43-101 resource area,
however it has not been included in the resource estimation,
representing exploration opportunities.
San Marcial should be regarded as a mid-stage project which may
have a significant economic potential should the mineralization
prove to be more extensive than is presently indicated by the
current resource estimate.
Next Steps
San Marcial hosts a significant drill and exploration database.
The Company aims to review all data and delineate an aggressive
exploration program not only targeting resource expansion with
drilling program along the 3.5 km mineralized trend, but also
advance exploration on the 14 historical exploration targets with
objective of delineating new discoveries.
The Qualified Person under the NI 43-101 for this news release
is Marcio Fonseca, President and CEO
for Goldplay, who has reviewed and approved its contents.
About Goldplay Exploration Ltd.
Goldplay is an exploration-stage company with a strategic
portfolio in the Rosario Mining District, Sinaloa, Mexico. Goldplay is currently focused
on advancing exploration activities including drilling on its
100%-owned El Habal Project.
Goldplay's flagship El Habal Project is a low sulphidation
epithermal exploration-stage project. The El Habal Project is in
the vicinity of the historical Au-Ag Rosario Mine ("Rosario Mine").
The Rosario Mine reportedly operated for 250 years. Goldplay's team
has over 30 years' experience with senior roles in exploration,
financing and development in the mining industry, including over 10
years of extensive exploration experience in the Rosario Mining
District, leading to previous successful discoveries. A current NI
43-101 report on The El Habal Project is filed on SEDAR.
Goldplay is providing the historical data related to the San
Marcial for informational purposes only. Goldplay has not completed
any quality control assurance program to the historical data.
Although the Company believes that the work was completed by
competent persons to the standards of the day and the Company
cautions the reader that the drill results are historical in nature
and have yet to be verified by the Company's "Qualified Person"
under NI 43-101.
Disclaimer for Forward-Looking Information
This press release contains forward-looking statements and
information that are based on the beliefs of management and reflect
the Company's current expectations. When used in this press
release, the words "estimate", "project", "belief", "anticipate",
"intend", "expect", "plan", "predict", "may" or "should" and the
negative of these words or such variations thereon or comparable
terminology are intended to identify forward-looking statements and
information. Such statements and information reflect the current
view of the Company. Risks and uncertainties that may cause actual
results to differ materially from those contemplated in those
forward-looking statements and information. By their nature,
forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause our actual results,
performance or achievements, or other future events, to be
materially different from any future results, performance or
achievements expressed or implied by such forward-looking
statements. THE FORWARD-LOOKING INFORMATION CONTAINED IN
THIS PRESS RELEASE REPRESENTS THE EXPECTATIONS OF THE COMPANY AS OF
THE DATE OF THIS PRESS RELEASE AND, ACCORDINGLY, IS SUBJECT TO
CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE
ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS
INFORMATION AS OF ANY OTHER DATE. WHILE GOLDPLAY MAY ELECT TO, IT
DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR
TIME EXCEPT AS REQUIRED IN ACCORDANCE WITH APPLICABLE
LAWS.
Mr. Marcio Fonseca,
P. Geo, President & CEO
Goldplay Exploration Ltd.
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 press release.
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SOURCE Goldplay Exploration Ltd