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Rio Silver and Magellan Gold Sign LOI for Ninobamba Property in Peru
TORONTO, ONTARIO--(Marketwired - July 4, 2016) - Rio Silver Inc. ("Rio Silver" or the "Company") (TSX VENTURE:RYO) is pleased to announce that it has entered in
About this update from Rio Silver Inc.
[{"type":"text","content":"TORONTO, ONTARIO--(Marketwired - July 4, 2016) - Rio Silver Inc. (\"Rio Silver\" or the \"Company\") (TSX VENTURE:RYO) is pleased to announce that it has entered into a non-binding letter of intent (the \"LOI\") with Magellan Gold Corporation (\"Magellan\") (OTCQB:MAGE), an arm's length party, pursuant to which, subject to regulatory approval, Rio Silver has granted to Magellan an option (the \"Option\") to earn an undivided 50% interest in the Company's Niñobamba Silver Property (\"Niñobamba\"). The parties intend to replace the LOI with a definitive agreement (the \"Definitive Agreement\") containing industry standard terms and conditions following a 45-day due diligence period. The 900-hectare Niñobamba silver project is located approximately 330 kilometres southeast of Lima in the Department of Ayacucho, Peru. The Niñobamba claim block is adjacent to claims owned by Southern Peru Copper and Newmont, in a historic silver district with positive infrastructure in a mining-friendly jurisdiction. Mineralization demonstrates the potential for a large, bulk-tonnage, disseminated-silver project. The property was originally explored by AngloGold Peru SAC (\"Anglo\") in 2001. Anglo focused on an area of intense hydrothermal surface alteration and drilled five widely spaced core holes totaling 861 metres. Anglo's drilling highlights included DDH-2 which reported assay results of 87.0 g/t silver over a drilled interval of 130 metres starting from a depth of nine metres, and DDH-4 reporting 54.0 g/t silver over a drilled interval of 96 metres starting from 23 metres. The true widths of mineralization from this drilling are not yet known. In 2003, Bear Creek Mining signed an option agreement to earn a 60-per-cent joint venture interest and an additional eight holes were drilled totaling 1,001 metres. Results of this limited exploration program outlined two distinct parallel zones of silver mineralization 400 meters apart. The last exploration program by the Company was completed in 2012. A total of 17 trenches were excavated using the local workforce from the nearby community. Trenches were channel sampled with a rock saw and all sample intervals were later surveyed. The sample results from the program are summarized in the Company's news release dated January 14, 2013. Highlights include 56 metres of 1.03 g/t Au and 98.9 g/t silver in tr...