Highlander Silver Issues Clarifying Statements and Amendments in Relation to Information Reported for its La Estrella Property in Peru
TheNewswire - July 11, 2023 - As a result of a review by the British Columbia Securities Commission, Highlander Silver Corp. (CSE:HSLV) (the "Company" or "Highlander Silver") is issuing the following news release to clarify its disclosure regarding its La Estrella project, Central Peru. In the Company's May 16, 2023 news release the Company disclosed details relating to an exploration target for their La Estrella project. Details on the exploration target were also included in an Investor Presentation dated May 2023 published on the company's web site. A new Investor Presentation has been posted on the company's website at www.highlandersilver.com
Highlander confirms that the grades and tonnages referred to in the previous news release and Investor Presentation are a target for further exploration and that more work and information is required before fulfilling CIM requirements for the disclosure of an eventual Mineral Resource. Moreover, it is uncertain if this work will result in the target being delineated as a mineral resource.
Ag equivalent grades for the exploration target were reported in the May 16 2023 disclosure based on assumptions for Ag and Au prices that did not consider metallurgical recoveries. As such, the metal equivalent calculations should not be relied on.
Amendments have therefore been included in the following disclosure of the exploration target outlined at La Estrella.
The Company has developed 3D geological models of the Ag-Au mineralization using the available drilling information and interpreted geological controls. Potential extensions to the mineralized envelopes have been used to outline a near surface exploration target of 15 to 35 Mt averaging between 50 and 60 g/t Ag, and 0.4 to 0.6 g/t Au containing some 25 to 60 MOz Ag and 0.2 to 0.7 MOz Au.
The potential quantity and grade of the exploration target is conceptual in nature, and more exploration is required to define a mineral resource. Important aspects such as metallurgical processing options need to be investigated to evaluate potential recoveries of Ag and Au. As such, it is uncertain if this work will result in the target being delineated as a mineral resource. In addition, further drilling will be required to investigate the extensions and continuity of the mineralization.
David Fincham, Highlander's President and CEO commented, "Since our acquisition of the La Estrella project in March earlier this year, the Highlander team has worked to understand the project´s exploration target potential on 3D geological modelling using historic drilling. We are delighted with the results of this initial work which confirms our view that La Estrella has significant exploration potential. In parallel with this technical work, we have established relationships with the local communities who have indicated strong support for Highlander moving the project forward.
The La Estrella acquisition represents an inflection point for the Company and our shareholders. Our planned work towards Highlander Silver´s phase I drill program and a potential inaugural resource at the project provides the company with significant upside potential."
Following the acquisition of the La Estrella project in Central Peru (see press release of March 23 2023), the Highlander team has been working with the historical drilling data (total of 41 drill holes for 8,500m) to understand the project´s exploration potential.
Different conceptual Ag-Au mineralization models, based on distance from drillholes, were developed to represent the potential continuity and extents of the mineralization, and these were used to provide for low and high case scenarios shown in Table 1.
Table 1
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The results indicate a near surface exploration target of 15 to 35 Mt averaging between 50 and 60 g/t Ag, and 0.4 to 0.6 g/t Au containing some 25 to 60 MOz Ag and 0.2 to 0.7 MOz Au. See figure 1.
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Figure 1: La Estrella 3D Ag-Au mineralization model showing mineralized drill hole intercepts and potential extensions
The potential quantity and grade of the exploration target is conceptual in nature, and more exploration is required to define a mineral resource. Important aspects such as metallurgical processing options need to be investigated to evaluate potential recoveries of Ag and Au. As such, it is uncertain if this work will result in the target being delineated as a mineral resource. In addition, further drilling will be required to investigate the extensions and continuity of the mineralization.
It is significant that some of the highest grade drill hole intercepts are open to the South, with a 500 m gap to the next drill hole, providing significant additional potential upside. The team will now focus on producing a detailed geological model that will underpin the Company´s planned phase I drill program. In addition, the Company will continue to build trust and nurture our existing relationships with the local communities and other key stakeholders to create an optimal environment for advancing the project.
About La Estrella
The La Estrella project is located in the Huancavelica Department, Central Peru, about 250 km ESE of Lima, on the eastern slope of the Western Cordillera. It is within the prolific Miocene polymetallic belt, approximately 34 km NNE of the Julcani Mine, which has produced over 105 million ounces of silver from high grade vein mineralisation averaging 16 ounces per ton since production started by Buenaventura in 1953 (Hector Barrionuevo, Julcani - Mina emblematica de Minas Buenaventura con 63 años de operación. PERU XVIII Peruvian Geological Congress).
Mineralisation at La Estrella occurs spatially and genetically associated with a sequence of volcanic and subvolcanic rocks, comprising coarse fragmental dome-diatreme andesite, massive porphyritic andesite and dacite dome facies, with late stage emplacement of amygdaloidal, biotite-feldspar porphyritic lamprophyre dykes and sills. These rocks lie on the hanging wall of a west-dipping fault, against redbeds of the Permo-Triassic Mitu Formation.
From 2003 to 2012 a total of 8,500 m was drilled in 41 holes defining a NNE tabular, west dipping mineralised system approximately 1,800 m long north to south, up to 300 m wide east to west, and 200 m thick. The deposit, which is open to the north, south and also down dip to the west, consists of multi-episodic polymetallic (Ag-Au ±Pb ±Zn ±Cu) intermediate sulphidation epithermal mineralisation that often starts in drill holes within a few metres from surface.
Qualified Person
All scientific and technical information contained in this news release has been reviewed and is approved by Graeme Lyall (FAusIMM Nº224791), non-executive Director at Highlander Silver Corp., who serves as the qualified person (QP) under the definitions of National Instrument 43-101.
About Highlander Silver
Highlander Silver Corp. is a mineral exploration company focused on the exploration of silver-polymetallic projects in central Peru, as well as targeting the acquisition of additional mineral projects by leveraging the team's significant experience in Peru and South America more widely. Additional information about Highlander Silver and its mineral projects can be viewed on the Company's SEDAR (www.sedar.com) profile at www.sedar.com and its website at www.highlandersilver.com
Neither the Canadian Securities Exchange (CSE) nor the Investment Industry Regulatory Organization of Canada (IIROC) accepts responsibility for the adequacy or accuracy of this news release.
For further information, please contact:
David Fincham
Chief Executive Officer
(604) 283 7630
info@highlandersilver.com
Forward-Looking Information
Certain information contained in this news release constitutes "forward-looking information" under Canadian securities legislation. This includes, but is not limited to, information or statements with respect to the future exploration plans of the Company, permitting and timing of future exploration. Such forward looking information or statements can be identified by the use of words such as "anticipates", "plans", "suggests", "targets" or "prospects" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "will" be taken, occur, or be achieved. Forward-looking information involves known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of the Company and/or its subsidiaries to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking information. Such factors include, among others, access to sufficient capital, general business, economic, competitive, political and social uncertainties, the actual results of current exploration activities, changes in project parameters as plans continue to be refined, accidents, labour disputes and other risks of the mining industry, and delays in obtaining governmental approvals. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that could cause actions, events or results to differ from those anticipated, estimated or intended. Forward-looking information contained herein are made as of the date of this news release. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The Company undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change, except as required by applicable securities laws. Accordingly, the reader is cautioned not to place undue reliance on forward-looking information.
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