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Peruvian Metals Corp. and Rio Silver Inc. Sign Memorandum of Understanding for the Joint Exploration and Development of the Palta Dorada Gold-Silver-Copper Project in Northern Peru
Edmonton, Alberta--(Newsfile Corp. - January 9, 2020) - Peruvian Metals Corp.(TSXV: PER) ("Per...
About this update from Peruvian Metals Corp.
[{"type":"text","content":"Peruvian Metals Corp. and Rio Silver Inc. Sign Memorandum of Understanding for the Joint Exploration and Development of the Palta Dorada Gold-Silver-Copper Project in Northern PeruEdmonton, Alberta--(Newsfile Corp. - January 9, 2020) - Peruvian Metals Corp.(TSXV: PER) (\"Peruvian Metals\" or the \"Company\") has signed a Memorandum of Understanding (\"MOU\") with Rio Silver Inc. (\"Rio Silver\") to jointly explore the Palta Dorada Au-Ag-Cu Property (\"Palta Dorada\" or the \"Property\") by initially conducting a detailed sampling and mapping program along with a bulk sampling campaign and processing the mineral at Peruvian Metals' 80% owned Aguila Norte Processing Plant (\"Aguila Norte or Plant\"). The Palta Dorada Au-Ag-Cu Property is located in the Ancash Mining Department in Northern Peru and covers an area of approximately 1200 hectares. The Property is accessible from the Plant by approximately 180 kms of mainly paved roadway. The MOU establishes a joint effort to explore and develop the property. Any sales from metal concentrates produced from the bulk sampling activity will be shared between companies. In addition, all operational expenses related to the bulk sampling will also be shared between companies. Peruvian Metals' 80% owned Plant will charge the joint effort commercial mineral processing rates on a similar basis to its other clients for processing the bulk samples.Peruvian Metals will also have the option to earn a 50% ownership in the property. Equal ownership will occur once Peruvian Metals has matched Rio Silver's acquisition price of the project of $250,000 US by assuming all capital and exploration expenditures. Any shortfall of capital expense by Peruvian Metals will require a cash payment to the joint effort by December 31, 2021. Both companies will enter into a definitive shareholder agreement in Peru shortly.Limited surface mapping and sampling has identified several oxide Au-Ag veins hosted in granodioritic rocks. The previous owner completed a number of workings allowing for access to several levels for exploration and bulk sampling. The main working is a 53 metre shaft where miners hoisted mineral to the surface. Eight chip samples have been taken from quartz veins containing sulphides in the shaft at various depths. Results from these samples range from 3.06 g/t Au to 24.1 g/t Au, 36 g/t Ag to 865 g/...