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Red Oak Mining & Impact Silver Execute Letter of Intent to Acquire Nuevo Taxco Silver-Gold Project (Mexico) and Concurrent Financing
Vancouver, British Columbia--(Newsfile Corp. - October 7, 2020) - Red Oak Mining Corp. (TSXV:...
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[{"type":"text","content":"Red Oak Mining & Impact Silver Execute Letter of Intent to Acquire Nuevo Taxco Silver-Gold Project (Mexico) and Concurrent FinancingVancouver, British Columbia--(Newsfile Corp. - October 7, 2020) - Red Oak Mining Corp. (TSXV: ROC.H) (\"Red Oak\") and Impact Silver Corp. (TSXV: IPT) (\"Impact Silver\"), have executed a non-binding Letter of Intent for an arm's length transaction whereby Red Oak may earn a 100% interest in the Nuevo Taxco Silver-Gold Project (the \"Property\") located approximately 80 km south west of Mexico City and west of the municipality of Tetipac within the Pregones Silver-Gold District. Impact Silver conducted initial geological work on the property mapping twenty-one (21) high grade silver veins and identifying initial priority drill targets. Under terms of the agreement (subject to regulatory approval), Red Oak may earn 100% interest in the approximately 1,100 hectare property by completing exploration expenditures of $1,400,000, making cash payments of $300,000 and issuing 3,500,000 common shares to IPT over a 3-year period. Details of the option agreement are outlined below.Pregones Mining DistrictThe Pregones Mining District is one of three principal production centers with the Zacualpan District situated ten kilometers to the northwest and Taxco District ten kilometers to the southeast. The Pregones Mining District shares the same stratigraphy as the Zacualpan District lower Cretaceous rocks of the Telooapan and Acapetlahuaya Formations, both of which are a mixed volcanic and sedimentary assemblage. Whereas in the Taxco District it is correlative sediments of the Mezcala Formation and limestones of the Morelos Formation, also of Cretaceous age. The Pregones Mining District is considered prospective for high grade silver and gold mineralization. Historical mining in the area dates back to the year 1520 with 11 historical mills from that era on the property. The project is considered to be significantly underexplored, with known silver and gold occurrences throughout the property. Geological Work CompletedIn 2013, Impact Silver completed a detailed compilation of existing data, followed by a field program which consisted of geological mapping and prospecting which identified a total of twenty‐one (21) silver‐bearing veins with substantial widths. A collection of a total of 395 rock samples...