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News Article

Silverton Metals to Acquire the Margaritas Gold-Silver Property

By Paloma Duran | Fri, 06/03/2022 - 12:02

Silverton Metals has reached an agreement to acquire the Margaritas gold-silver property located in Durango. The company highlighted the opportunity because the project has great exploration potential and features advanced environmental and community permitting processes.

Silverton has entered into a purchase agreement with Zapata Exploration and 0924682 B.C. to purchase the Margarita property, with which it commits to acquire all of the issued and outstanding shares of Zapata Exploration’s subsidiary, Impulsora de Proyectos Mineros. In addition, the company agreed to issue 750,000 shares and provide a 5 percent net smelter return royalty.

In addition, the project is subject to a 1 percent net smelter return royalty, which can be bought back for US$320,000. Impulsora has already paid US$120,000 and plans to pay a further US$100,000 in 2023 and another US$100,000 in 2024. The agreement noted that if Impulsora does not start commercial production or repurchase the royalty before April 25, 2024, the former owners can repurchase the project for US$1. The company said the closing of the deal is still subject to customary conditions and the TSX Venture Exchange’s acceptance.

John Theobald, President and CEO of Silverton, noted that the project was purchased because the property contains high-grade gold veins in all directions with visible gold, showing its potential to develop into a high-quality deposit. In addition, the company highlighted that the environmental permit for the project has already been requested and the agreement with the community is underway. All in all, the company is well positioned to start its work on the project.

Theobald highlighted that although the project has great mining opportunity, it has remained underexplored for years. Consequently, Silverston plans to launch an aggressive exploration campaign this year. “The simple mineralogy suggests that the gold could be easily extracted by gravity and leaching methods. We plan to rehabilitate roads, refine mapping and sampling, and get the project ready for drilling before the end of the year,” said Theobald.

The Margaritas Gold Property encompasses two concessions: Margaritas and Ampliación las Margaritas, covering a total of 500ha. The project has a gold-dominant low sulphidation epithermal system, which is similar to the nearby La Cienega and Bacis deposits in Durango. Previous sampling indicated that the deposit contains “gold grades between 0.01 and 31.6g/t as well as between 0.7 and 73.7g/t in dump samples.” Meanwhile, silver grades range from the limit of detection from <0.2 g/t to 38 g/t in rock chip and dump channel samples.

The data used in this article was sourced from:  
MBN, Silverton Metals
Photo by:   omid roshan
Paloma Duran Paloma Duran Journalist and Industry Analyst