Rio Silver has also signed a Memorandum of Understanding (MoU) with Peruvian Metals to jointly explore the property
Canada-based Rio Silver has acquired the Palta Dorada gold-silver-copper project, and has signed a Memorandum of Understanding (MOU) with Peruvian Metals to jointly develop the property.
The Palta Dorada property is located in the Ancash mining department in Northern Peru, spanning approximately 1,200 hectares area. The property is comprised of numerous high-grade oxide and sulphide gold-silver veins, mined by artisanal methods.
Rio Silver CEO Chris Verrico said: “We are very pleased to have accomplished these milestones, leveraging our joint resources and working together. The Palta Dorada property has several high-grade Au-Ag-Cu veins ready to be bulk sampled and processed at the Aguila Norte Plant.
“Oxide gold material can also be bulk sampled and treated at a number toll mills. Initial development and exploration will consist of drifting along the sulphide veins in this prominent structure, potentially identifying a minable resource which would only enhance our ability to explore our flagship Niñobamba project in a timely manner.”
Rio Silver and Peruvian Metals will jointly explore and develop the Palta Dorada project
The MoU is aimed at conducting an initial detailed sampling and mapping program in the Palta Dorada project, along with a bulk sampling campaign.
The mineral from the project is planned to be processed at Peruvian Metals’ 80% owned Aguila Norte Processing Plant, located approximately 180km from the property.
The companies will jointly explore and develop the property and will share the profits from the sale of metal concentrates and operational expenses from the bulk sampling activity.
Peruvian Metals will be provided with an option to earn the 50% ownership in the project, and once Peruvian Metals reaches the Rio Silver’s deal price by assuming all capital and exploration expenditures, it will attain the equal ownership.
In addition, the company will serve as the operator of the joint development program and will assume responsibility for securing the required permits to explore and extract a bulk sample.
The bulk sampling and exploration is anticipated to begin in the first quarter of 2020.