Silver Sands Acquires Complimentary Corner Pocket Copper-Zinc-Silver Massive Sulfide Project in Newfoundland and Proceeds to Private Placement
Vancouver, March 9, 2022 - Silver Sands Resources Corp. (CSE: SAND) (OTCQB: SSRSF) ("Silver Sands" or the "Company") is pleased to announce the acquisition of the 6,400 hectare Corner Pocket copper-zinc-silver massive sulfide project, 25 km to the WNW of Corner Brook, Newfoundland. Corner Pocket is contiguous to the west, east and south of the York Harbour Metals Inc., massive sulfide project.
The contiguous York Harbour project of York Harbour Metals Inc. (formerly Phoenix Gold Resources Corp.) hosts significant semi-massive to massive volcanogenic massive sulfide mineralization including the past producing York Harbour mine. Historic mining and current and historic drilling have identified lenses from 1 to 26 metres wide over 600 metres of strike length. York Harbour has identified additional copper-zinc mineralization in the western and southern portions of the property that has yet to be explored.2
York Harbour drill highlights (drill widths, not true widths) include:
- 2.70% copper, 9.04% zinc, 17.78 gpt silver, 164 g/t cobalt and 0.15 g/t gold over 25 metres
- including 2.47% copper, 16.52% zinc, 36.43 gpt silver, 93 g/t cobalt and 0.31 g/t gold over 10 metres1
- 1.69% copper, 0.13% zinc, 1.43 g/t silver and 125.14 g/t cobalt over 9.51 metres2
- including 5.2% copper, 0.07% zinc, 2.57 g/t silver and 287.12 g/t cobalt over 1.54 metres2
- 1.69% copper, 0.11% zinc, 2.83 g/t silver and 238.73 g/t cobalt over 9.54 metres2
Source: 1) York Harbour Metals Inc. News Release dated 2022-Feb-14 ; 2) Phoenix Gold Resources Corp. Management Discussion and Analysis for Quarter Ended 2021-Oct-31
Silver Sands cautions investors mineralization on the York Harbour property is not necessarily indicative of similar mineralization on the Corner Pocket property
"The Company has been looking for a complimentary project to offset the seasonality of our Argentinian based Virginia silver project," commented Silver Sands CEO Keith Anderson. "While we focus on continuing to expand silver mineralization to increase the silver resource base at Virginia, management felt a northern hemisphere based project with significant silver credits would allow for year round exploration and news flow as we continue to build shareholder value."
Figure 1. Corner Pocket Property
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"The recent exploration success of Phoenix Gold / York Harbour Metals at York Harbour has brought considerable focus to western Newfoundland. While the Corner Pocket property has seen very limited historical exploration, there have been undocumented reports of significant gossans on this ground the Company plans to aggressively follow up. York Harbour's reports of copper mineralization in the western and southern portions of their claim block strongly suggests possible extensions onto the Corner Pocket property and further enhance the potential of the property," he concluded.
The Corner Brook claim covers a NNE/SSW trending synclinal fold within the Blow me Down Massif which is comprised of the Humber Arm Allochthon/ Bay of Islands Ophiolite suite. The claim hosts the upper and middle stratigraphy of the upper Cambrian to lower Ordovician Bay of Islands Ophiolite: a mafic sheeted dyke complex and massive gabbro. The Claim also contains a deeper serpentinized harzburgite and red arkosic sandstone, conglomerate, volcanic pillows and breccias of the Lower Cambrian Blow Me Down Brook Formation.
The targets are Cypress style volcanogenic massive sulfides within the Blow Me Down Massif within an ophiolite sheeted dyke complex. The lower Cambrian Blow Me Down Brook Formation also has potential to host volcanogenic massive sulfides.
The Company entered into a mineral property purchase agreement with Longford Capital Corp., (the "Vendor") and acquired the Corner Pocket property from the Vendor for consideration of $20,000 cash on signing, and the issuance of 4,000,000 shares in the capital of the Company. The Company is obliged to incur $100,000 of exploration expenditures in the first year and an additional $150,000 in the second year on the Corner Pocket property. In addition, the Vendor shall retain a 3.0% net smelter return royalty (the "Royalty") which may be reduced from 3.0% to 1.0% at any time prior to commencement of Commercial Production on payment by the Company or its permitted assign(s) to the Vendor of $2,000,000.
Private Placement Financing
The Company also announces a Private Placement of up to 10,000,000 Units at a price of C$0.10 per Unit for proceeds of up to $1,000,000.
Each Unit will consist of one Share and one half of one common share purchase warrant (each whole warrant, a "Warrant"). Each Warrant entitles the holder to acquire one Share at a price of C$0.15 per share for a period of 24 months following the date of issuance.
The Company may pay a finder's fee of 8% Cash and 8% warrants, (with the same terms as the subscribers' warrants) on all or a portion of the Private Placement in accordance with the policies of the CSE. Proceeds of the private placement will be used for work on the Company's mineral properties and general working capital. The Private Placement is subject to the acceptance of the CSE.
About Silver Sands Resources Corp.
Silver Sands is a well-financed, Canada-based company engaged in the business of mineral exploration and the acquisition of mineral property assets in mining-friendly jurisdictions. Its objective is to locate and develop economic precious and base metal properties of merit. Its key asset is the Virginia silver project, located in the mining-friendly Santa Cruz state of Argentina.
Virginia is a low to intermediate sulphidation epithermal silver deposit located in the mineral-rich Deseado Massif, lying within the mining-friendly province of Santa Cruz in the Patagonia region of Argentina. Through initial discovery in 2009 to four drill programs between 2010 and 2012, Mirasol Resources was able to define an initial indicated mineral resource of 11.9 million ounces of silver at 310 g/t Silver and a further inferred 3.1 million ounces of silver at 207 g/t Silver within seven outcropping bodies. This resource is documented in a Mirasol Resources technical report entitled: "Amended Technical Report, Virginia Project, Santa Cruz Province, Argentina -- Initial Silver Mineral Resource Estimate" with an effective date of Oct. 24, 2014, and a report date of Feb. 29, 2016.
Several additional vein structures within the property package remain highly prospective, as Mirasol concentrated the bulk of its exploration effort on the resource area at the expense of continuing exploration on the underexplored additional veins. Several of these structures have highlight values in excess of 1,000 g/t silver and have a high probability of hosting additional silver resources. These veins structures continue to be the primary focus of the Silver Sands 2021/2022 exploration efforts.
Silver Sands is earning a 100-per-cent interest in Virginia by issuing sufficient shares for Mirasol to end up with 19.9 per cent of the issued and outstanding of Silver Sands and completing $6-million (U.S.) in exploration over three years. Mirasol will retain a 3-per-cent net smelter return royalty with Silver Sands having the option of purchasing one-third of the royalty for $2-million (U.S.).
On Behalf of the Board of Directors
Keith Anderson
Chief Executive Officer, Director
For further information, please contact:
Keith Anderson
Chief Executive Officer, Director (604) 786-7774
Qualified Person Statement: Silver Sand's disclosure of technical and scientific information in this press release has been reviewed and approved by R. Tim Henneberry, P.Geo., a director of the Company, who serves as a Qualified Person under the definition of National Instrument 43-101.
Forward-Looking Statements: The information in this news release contains forward-looking statements that are subject to a number of known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those anticipated in our forward-looking statements. Factors that could cause such differences include: changes in world commodity markets, equity markets, costs and supply of materials relevant to the mining industry, change in government and changes to regulations affecting the mining industry and to policies linked to pandemics, social and environmental related matters. Forward-looking statements in this release include statements regarding future exploration programs, operation plans, geological interpretations, mineral tenure issues and mineral recovery processes. Although we believe the expectations reflected in our forward-looking statements are reasonable, results may vary, and we cannot guarantee future results, levels of activity, performance or achievements. Silver Sands disclaims any obligations to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as may be required by applicable law.
Neither the Canadian Securities Exchange ("CSE") nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.
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