November 20, 2013-Vancouver, B.C.: Argentum Silver Corp. (TSX.V:ASL) announces an Inferred Mineral Resource estimate under National Instrument (“NI”) 43-101 has been prepared on the El Tajo vein at the Coyote Silver Project in Jalisco, Mexico as part of an independent report (the “Report”) prepared by Argentum’s consultants, GeoVector Management Inc. (“GeoVector“).
At a 70 gpt silver cut-off, Geovector estimates an Inferred Mineral Resource of 582,830 tonnes grading 192 grams per tonne (gpt) silver (Ag) and 0.27 gpt gold (Au). This equates to a 207 gpt AgEq* grade. The mineral resource contains a total of 3,600,000 ounces silver and 5,053 ounces of gold. The resource is open along strike and down dip. The Report will be filed on SEDAR within 45 days.
At the Coyote Project, the El Tajo Vein has been traced on surface over 1.1 kilometres. In 2012, the Company drill tested the high-grade El Tajo silver vein over a 600 metre strike length with 25 diamond drill holes for a total of 3,013 metres. The drilling was designed to demonstrate thickness and grade continuity along strike, with drill holes and section fences roughly 50 metres apart and a vertical distance of 140 meters. The resource remains open along strike and to depth. Results from the Report prepared by GeoVector Management Inc. (“GeoVector”) are as follows:
Cut-off Grade Ag (gpt) | Tonnage (tonnes) | Ag gpt | Ag Moz | Au gpt | Au oz | AgEq* gpt | AgEq* Moz |
|---|---|---|---|---|---|---|---|
>150 gpt | 366,100 | 243 | 2.87 | 0.29 | 3,385 | 260 | 3.06 |
>130 gpt | 419,270 | 230 | 3.11 | 0.29 | 3,884 | 247 | 3.32 |
>110 gpt | 460,130 | 221 | 3.26 | 0.29 | 4,258 | 237 | 3.50 |
>90 gpt | 498,100 | 211 | 3.39 | 0.29 | 4,579 | 227 | 3.64 |
>70 gpt | 582,830 | 192 | 3.60 | 0.27 | 5,053 | 207 | 3.88 |
>50 gpt | 702,660 | 169 | 3.82 | 0.25 | 5,543 | 183 | 4.13 |
>30 gpt | 811,200 | 152 | 3.97 | 0.23 | 5,915 | 165 | 4.30 |
>15 gpt | 972,080 | 130 | 4.07 | 0.20 | 6,280 | 142 | 4.42 |
(October 2012 to September 2013) of US$27.73/oz silver and US$1556.07/oz gold.
Silver equivalent includes silver and gold assays, assuming 100% recovery and does not include base metals. A silver to gold ratio of 1:56.1 was used.
Warren McIntyre, President of Argentum said, “The resource estimate demonstrates that the El Tajo vein at the Coyote Project hosts potential for an underground high-grade silver deposit with minor gold credits. Further drilling is warranted to test the structure at depth and along strike with a view to increasing the resource. El Tajo is one of 6 vein systems on the property where the total strike length of all the veins identified to date is over 6.6 km, and where 5 of the veins have yet to be properly drill-tested. This initial resource estimate provides Argentum with a solid base from which to build future resources, with the potential for near-term, small-scale high-grade silver production.”
Sources of Information
GeoVector of Nepean, Ontario was contracted to conduct an independent assessment of the deposit. The report is based on information known and acquired by Argentum’s field office and exploration personnel, which was provided to and reviewed by GeoVector.
Rock and drill sample analysis was completed by ALS Chemex. Chemex implements a quality laboratory compliant with International Standards Organization. Analytical procedures include a 33 element ICP-AES analysis (ME-ICP61m) and a 50g FA AA finish for gold (AA-24). Silver assays exceeding 100 gpt are re-assayed by HCL leach.
Argentum implemented a quality assurance program that includes insertion of certified reference material including blanks and standards in the drill sample stream. Standards and blanks were purchased from WCM Minerals Burnaby, B.C. The two drill phases used five standards (including two blanks) purchased from WCM. Argentum implemented an industry standard “pass/fail” system of comparing Chemex assays versus WCM certificates, with a “fail” being an assay value more than two standard deviations from the expected value.
The Report will be co-authored by Duncan Studd, M.Sc.,P.Geo., and Joe Campbell, B.Sc, P.Geo. Mr. Studd conducted a visit to the Coyote Project from September 2nd to 4th, 2013. Mr. Campbell examined the data and QAQC procedures and is satisfied that the data collection by Argentum personnel meets industry standards for reliability and accuracy.
Qualified Persons
Paul Cowley, P. Geo., the Company’s Senior Geological Consultant and Advisor and a Qualified Person under NI 43-101, has reviewed and approved the contents of this press release.
The Inferred mineral resource estimate has been prepared in compliance with the standards of NI 43-101 by Duncan Studd. Mr. Studd is independent of the Corporation as defined under NI 43-101. The Report will be finalized and filed on SEDAR within 45 days
About Coyote Property
The Coyote project is located near the town of Chilacayote, within the state of Jalisco, Mexico. Road access and infrastructure are excellent. The property is approximately 150 linear kilometres southwest of the capital city of Guadalajara, and roughly a 3½ hour drive. Topography is generally gentle to moderate. A regional electrical power line crosses the property. Access and infrastructure are excellent. All underlying agreements and permits are in good standing.
About Argentum Silver
Argentum owns a 100% interest in the Coyote silver-gold project and Victoria property located in Jalisco State, Mexico. Argentum also owns a 100% interest in the Lachiguiri and Silacayoapan properties, located in Oaxaca State, Mexico. The Company will continue to focus on its resource development at the Coyote Property.
For further information please contact:
Warren McIntyre, President and CEO
Phone: 778.383.1828
Email: [email protected] or visit www.argentumsilvercorp.com
