Home / Mining Company News Releases (Unreviewed) / Drilling at Plata Latina’s Naranjillo Property Continues to Generate Positive Results Highlighted by 3.45 Meter Interval Averaging 5,507 g/t Ag and 34.74 g/t Au

Drilling at Plata Latina’s Naranjillo Property Continues to Generate Positive Results Highlighted by 3.45 Meter Interval Averaging 5,507 g/t Ag and 34.74 g/t Au

Vancouver, British Columbia–(Newsfile Corp. – February 25, 2019) –  Plata Latina Minerals Corporation (TSXV: PLA) (“Plata Latina” or the “Company”) is pleased to announce the drill results from the 2017-2018 multi-rig drill program that Metalúrgica Reyna S.A. de C.V. (“Reyna”, a wholly owned subsidiary of Fresnillo plc) has completed on Plata Latina’s Naranjillo Property. Naranjillo is a grassroots epithermal silver discovery made by the Company and is located in the Mexican Silver Belt, approximately 35 kilometers southeast of the Guanajuato mining district.

Randy Eppler, interim president and CEO of Plata Latina, commented: “We are very pleased with the positive results from the recent drill program completed by Reyna. These results build upon our initial exploration success and support our geologic discovery model. Reyna has steadily expanded the extent of known mineralization, focusing on 3 target areas with development potential along a three-kilometer strike length. We believe their efforts will continue to demonstrate the value of the Naranjillo property.

2017-18 Drill Results

Reyna has drilled 45 holes in total to date at Naranjillo as part of their 2017-2018 exploration program. Recent drilling has returned similar results to Plata Latina’s discovery hole BDD-N-10 which averaged 3,181 g/t Ag and 13.28 g/t Au (4,287 g/t AgEq), over 10.95 meters (7.74 meters true thickness). Significant drill results from this program are highlighted below and a comprehensive list of results along with drill results from previous Plata Latina drilling campaigns can be found in Appendix A.

Hole From (m) To (m) Interval (m) True Width (m) Ag(g/t) Au(g/t) AgEq(g/t)* Zone
CB-56 665.60 668.10 2.50 2.31 4,978 5.57 5,443 Southeast
CB-62 706.20 714.35 8.15 6.24 1,619 5.83 2,105 Sibila
CB-65 763.30 770.65 7.35 4.72 3,598 32.10 6,272 Sibila
CB-68 679.35 679.85 0.50 0.43 1,665 10.20 2,515 Sibila
CB-88 807.10 807.60 0.50 0.38 1,410 31.80 4,060 Sibila
CB-96 756.95 760.40 3.45 3.13 5,507 34.74 8,401 Sibila
CB-99A 738.70 739.35 0.65 0.56 1,580 9.62 2,382 Sibila

 *Silver equivalent based on US$15/oz silver and US$1,250/oz gold with 90% recovery for both gold and silver

The drill results from Naranjillo continue to demonstrate the discovery of a significant and extensive epithermal vein system, typical of the Mexican Silver Belt. The Sibila Vein system, in the central area of the Naranjillo deposit, has been the target of much of the drilling on the Naranjillo Property, as shown in the plan map in Appendix B and the longitudinal section in Appendix C. The main structures in the system include the Sibila, Sur, and Villa Veins, which all trend to the northwest and dip steeply to the southwest. Vein mineralization occurs from approximately 350 meters to 700 meters below the ground surface.

High-grade intervals of the Sibila Vein system have been intercepted in many of the holes along a one-kilometer trend on the Plata Latina Property. Intercepts in excess of 1,000 g/t AgEq have now been encountered in 12 holes in the Sibila system, including the original discovery hole. The best intercept to date is found in the 2018 drill hole CB-96, with 3.45 meters (3.13 meter true thickness) averaging 5,507 g/t Ag and 34.7 g/t Au, for 8,401 g/t AgEg. Another 10 intercepts from the Sibila Vein system have had grades ranging from 500 to 1,000 g/t AgEq.

About 1.5 kilometers southeast of the central area, locally high-grade mineralization has been found along the Naranjillo Vein system. Here, the best intercepts have been 2.5 meters (2.31 meter true thickness) averaging 4,978 g/t Ag and 5.57 g/t Au, for 5,442 g/t AgEq and 0.7 meters (0.54 meter true thickness) averaging 390 g/t Ag and 1.34 g/t Au, for 501 g/t AgEq. These favorable drill results in the Southeast Target demonstrate the continuity of the structural trend to the southeast and the potential for further mineralization in that direction.

A third area occurs about 2.5 kilometers northwest of the Sibila area, with mineralization identified along the San Diego I Vein where the best intercept to date was drilled by Plata Latina and returned 1.65 meters (1.24 meters true thickness) averaging 316 g/t Ag and 0.35 g/t Au, for 345 g/t AgEq. Positive drilling in this area shows the existence of further structural trends to the northwest and the potential for further mineralization in that direction.

Reyna has completed two multiple rig drill programs on Plata Latina’s Naranjillo Property, since entering the 2017 option agreement with the Company.

Reyna Agreement

Plata Latina’s ore concept model and extensive experience along the Mexican Silver Belt led to the 2012 staking of the Naranjillo Property. Plata Latina drilling from 2012 to 2014 discovered and further delineated the silver-gold vein system. On February 8, 2017, Plata Latina formally signed the option agreement with Reyna for the Naranjillo Property. The agreement provides Reyna the right to explore and acquire 100% of Naranjillo over a three-year period.

The terms of the option agreement are as follows:

  • Provides Reyna the right to explore the Naranjillo Property for a total cash payment to Plata Latina of US$1,450,000 over three years, based on staged twice per year payments. Reyna’s most recent payment of US$250,000 was received on February 8, 2019, with another payment programmed for August 2019, if Reyna decides to continue exploring the Naranjillo Property.
  • During the three-year option period, Reyna is required to spend a minimum US$3,000,000 in exploration on the Naranjillo Property.
  • At the end of the three-year option period (February 8, 2020), Reyna has the option to acquire the Naranjillo Property for an additional payment of US$500,000 and the granting of a 3% net smelter return royalty to Plata Latina (the “Royalty”).
  • Reyna would also pay advance royalty payments of US$100,000 annually until a maximum of US$1,000,000 has been reached or commercial production commences from the Naranjillo Property.
  • Reyna has right to further reduce the Royalty to 2% by paying an additional US$1,000,000, and, may buyout the remaining 2% Royalty by paying an additional US$5,000,000.

Other Plata Latina Mexican Silver Belt Properties

Plata Latina also controls three other exploration ready properties along the Mexican Silver Belt, including Vaquerias, La Joya and Palo Alto.

Vaquerias is located about 140 kilometers northwest of Naranjillo. Drilling of this property in early 2013 by Plata Latina encountered grade ranging to 727 g/t Ag and 0.24 g/t Au, over a drilled width of 0.55 meters (0.30 m true thickness). Vaquerias is attractively situated in an erosional window, exposing strong hydrothermal alteration and quartz veining, in an area of historical silver mining. The trend extends to the southeast, beneath younger volcanic cover.

La Joya is located about 125 kilometers southeast of Naranjillo. The area is noteworthy for its large zones of hydrothermal alteration outcropping at the surface. In several areas, the alteration is being mined by kaolin surface pit operations. Local quartz veined areas have anomalous silver/gold from surface sampling. The Company believes that significant silver epithermal silver exploration potential exists below these shallow kaolin pits at La Joya. To date, no drilling has been conducted on this property.

Palo Alto is also about 165 kilometers northwest of Naranjillo. The Palo Alto concession is located along a north trending structural trend, characterized by strong alteration and quartz veining, locally with anomalous silver/gold geochemistry from surface sampling. No drilling has been conducted on this property.

Assays and Quality Assurance/Quality Control

The submission of all drill hole samples to the commercial laboratory were done in conjunction with a quality assurance/quality control (QA/QC) program that meets standard engineering practice, both for the Plata Latina and Reyna analyses. Company QA/QC protocol included the inclusion of commercial standards and blanks, into the sample stream sent to the laboratory. Additionally, on a periodic basis samples were designated for a repeat assay. All QA/QC results were monitored to ensure that all analytical results were accurate and precise. It is further noted that the assay laboratories used by both companies, ALS Chemex Labs, is an independent international laboratory with ISO certification, and is widely regarded in the mining community.

Qualified Person

The drilling results in this news release have been reviewed and approved by Mark G. Stevens, a Qualified Person as defined under National Instrument (NI) 43-101. Mr. Stevens is V.P. Exploration for Plata Latina Minerals and has worked in the mining industry for more than 35 years, including evaluations of many different epithermal vein deposits from around the world. All Plata Latina drill results were previously released to the public by Michael Clarke, formerly C.E.O. for Plata Latina Minerals who is also a Qualified Person as defined under National Instrument (NI) 43-101.

About Plata Latina Minerals

Plata Latina Minerals is a Canadian exploration company with a portfolio of four silver-gold properties situated in the prolific Mexican Silver Belt focused on discovering new silver-gold vein districts. Plata Latina’s expertise in the ore horizon concept and extensive experience in Mexico provides a competitive edge for discovery of new districts between old historic deposits. Its highly experienced management team and board are focused on developing its portfolio of high-potential targets and exploring additional value-creation opportunities.

For more information, please contact:

W. Durand Eppler
Interim President & CEO
Telephone: +1 800 933 9925
Email: [email protected]

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

APPENDIX A: Naranjillo Drill Hole Interval Highlights

Phase DH No From To Drill Thick True Ag (g/t) Au (g/t) AgEq (g/t) Zone
(meters) (meters) (meters) Thickness (wt avg) (wt avg) (wt avg) Location
(meters)
BDD-N-8 544.50 545.25 0.75 0.38 171 0.85 241 San Diego I
BDD-N-10 585.45 596.40 10.95 7.74 3,181 13.28 4,287 Sibila
BDD-N-11 601.30 602.95 1.65 1.24 316 0.35 345 San Diego I
Plata BDD-N-12 643.21 645.35 2.14 1.65 641 1.49 765 Sibila
Latina BDD-N-12 672.39 675.16 2.77 2.13 2,040 15.40 3,323 Sibila
Holes BDD-N-12 684.66 688.88 4.22 3.25 127 0.84 197 Sibila
(49 holes BDD-N-18 708.20 710.24 2.04 1.17 117 0.60 167 Sibila
total) BDD-N-22 674.96 675.68 0.72 0.59 110 0.47 149 Sibila
BDD-N-22 736.37 737.10 0.73 0.56 188 0.62 239 Sibila
BDD-N-23 601.13 607.08 5.95 3.40 4,091 14.24 5,278 Sibila
BDD-N-24 694.12 695.10 0.98 0.56 94 0.43 130 Sibila
BDD-N-28 584.62 586.5 1.88 1.08 638 5.41 1,088 Sibila
BDD-N-28 589.09 593.00 3.91 2.25 152 2.50 360 Sibila
BDD-N-30 686.11 686.66 0.55 0.33 171 0.40 204 Sibila
BDD-N-37 681.71 683.20 1.49 0.96 1,347 3.61 1,648 Sibila
BDD-N-37 686.09 693.18 7.09 4.56 414 1.76 561 Sibila
BDD-N-38 730.69 731.75 1.06 0.81 425 1.69 565 Sibila
BDD-N-40 811.25 812.11 0.86 0.49 213 0.94 291 Sibila
BDD-N-41 615.04 615.69 0.65 0.50 141 1.11 233 Sibila
BDD-N-41 673.57 674.37 0.80 0.45 331 1.17 428 Sibila
BDD-N-43 695.72 696.47 0.75 0.40 2,590 5.01 3,007 Sibila
BDD-N-47 669.03 669.45 0.42 0.40 204 1.04 291 Southeast
BDD-N-49 722.21 722.61 0.40 0.32 1,430 5.27 1,869 Sibila
BDD-N-49 831.66 832.00 0.34 0.28 866 3.59 1,165 Sibila
CB-52 786.45 787.70 1.25 0.80 127 0.71 186 Sibila
CB-56 665.60 668.10 2.50 2.31 4,978 5.57 5,443 Southeast
CB-58 696.45 696.95 0.50 0.25 260 0.80 326 Sibila
CB-59 607.90 608.85 0.95 0.82 515 0.50 556 Sibila
CB-60 685.60 688.15 2.55 1.95 718 1.42 837 Sibila
CB-62 706.20 714.35 8.15 6.24 1,619 5.83 2,105 Sibila
2017 CB-65 567.90 568.65 0.75 0.68 250 0.63 302 Sibila
Reyna CB-65 701.70 705.00 3.30 2.53 477 3.16 740 Sibila
Holes CB-65 763.30 770.65 7.35 4.72 3,598 32.10 6,272 Sibila
(28 holes CB-67 678.50 679.10 0.60 0.56 117 0.43 153 Southeast
total) CB-68 679.35 679.85 0.50 0.43 1,665 10.20 2,515 Sibila
CB-69 713.80 714.30 0.50 0.38 135 2.08 308 Sibila
CB-73 604.30 604.80 0.50 0.25 206 0.17 220 Southeast
CB-75 743.05 743.55 0.50 0.35 328 3.09 585 Southeast
CB-76 862.65 864.45 1.80 1.47 286 3.22 554 Sibila
CB-77 709.25 709.95 0.70 0.54 390 1.34 501 Southeast
CB-78 638.70 639.40 0.70 0.45 245 0.49 285 Sibila
CB-80 744.70 746.05 1.35 0.46 133 0.12 143 Southeast
CB-82 677.50 680.35 2.85 1.43 337 0.62 389 Southeast
2018 CB-84 816.95 817.55 0.60 0.46 177 0.27 199 Sibila
Reyna CB-84 823.55 824.05 0.50 0.38 748 3.21 1,015 Sibila
Holes CB-87 708.80 709.50 0.70 0.35 219 1.06 307 Southeast
(17 holes CB-87 729.40 731.50 2.10 1.35 120 0.16 133 Southeast
total) CB-88 735.70 737.90 2.20 1.56 141 0.75 203 Sibila
CB-88 803.10 803.60 0.50 0.43 334 2.89 575 Sibila
CB-88 807.10 807.60 0.50 0.38 1,410 31.80 4,060 Sibila
CB-88 822.25 824.85 2.60 1.99 307 2.66 529 Southeast
CB-90 718.05 718.55 0.50 0.40 552 0.66 607 Southeast
CB-93 895.00 895.50 0.50 0.43 171 1.48 294 San Diego I
CB-96 756.95 760.40 3.45 3.13 5,507 34.74 8,401 Sibila
CB-97 737.55 738.10 0.55 0.28 334 1.35 446 San Diego I
CB-99A 690.80 691.40 0.60 0.46 345 1.36 458 Sibila
CB-99A 738.70 739.35 0.65 0.56 1,580 9.62 2,382 Sibila

Note:
1) these are at a nominal 125 g/t AgEq cut-off grade (red bold > 1000 g/t AgEq) (black bold > 500 g/t AgEq)
2) silver equivalent based on US$15/oz Ag & US$1,250/oz Au, with 90% metallurgical recovery for both.
3) only includes drill holes on Plata Latina ground

APPENDIX B: Drill Hole and Vein Locations

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To view an enhanced version of Appendix B, please visit:
https://orders.newsfilecorp.com/files/4838/43006_f95a80ab84bc093d_002full.jpg

The information presented in this figure is based solely on Plata Latina’s interpretation of the available data.

APPENDIX C: Sibila Vein System Longitudinal Section

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To view an enhanced version of Appendix C, please visit:
https://orders.newsfilecorp.com/files/4838/43006_f95a80ab84bc093d_003full.jpg

The information presented in this figure is based solely on Plata Latina’s interpretation of the available data.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/43006

 

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