Toronto – TheNewswire – September 21, 2021- AbraSilver Resource Corp. (TSXV: ABRA) (OTC: ABBRF) (“AbraSilver” or the “Company”) is pleased to announce that Rio Tinto Mines and Exploration Limited (“Rio Tinto”) has commenced drilling at the Company’s Arcas copper-gold project (“Arcas” or the “Project”), located in Chile.
The Arcas project, wholly owned by the Company, is subject to an acquisition agreement with a joint venture option, under which Rio Tinto can acquire up to 75% of the capital of Arcas by committing up to US $ 25 million in exploration expenses. The initial exploration program is expected to consist of approximately 2,000 meters of reverse circulation drilling in five holes.
John Miniotis, President and CEO of AbraSilver, said: “We are delighted that Rio Tinto is starting drilling operations in Arcas. Partnering with Rio Tinto, one of the world’s largest and most successful mining and exploration companies, provides AbraSilver with a significant opportunity to unlock additional exploration value for shareholders, as we continue to focus on our silver-gold Diablillos project and advance our pipeline of exploration projects.
Presentation of the Arcas project
The Arcas project is located in the Antofagasta region, 245 km northeast of the city of Antofagasta, a world-class mining center. The project is located in the Atacama Desert, the Cordillera transition zone between the Lower Desert and the Upper Cordillera, at altitudes between 1,500 and 3,800 meters. The Arcas concession block is a combined area of approximately 51,600 hectares and lies along the large West Fissure-Domeyko mineralized trend which hosts numerous world-class porphyry copper deposits (e.g. Chuquicamata, Collahuasi, El Abra et al. Quebrada Blanca). Although it is located near a major mineral belt, the Arcas project has, to date, been the subject of little modern exploration and remains at a preliminary exploration stage.
On September 11, 2019, the Company’s wholly owned subsidiary, Aethon Minerals Chile SpA (“Aethon”), has entered into a participation agreement with a joint venture option (the “Agreement”), under which Rio Tinto may acquire up to 75% of the capital of Arcas by incurring US $ 25 million in exploration expenses. Here is a summary of the main terms of the Agreement:
Option 1: If Rio Tinto incurs total project expenses of US $ 4 million within 3 years and makes total cash payments to Aethon of US $ 300,000 in the first two years (which have already been paid), he will have the right to acquire a 51% interest in the Arcas project by acquiring 51% of the shares of a new company (“Opco”) which will be incorporated;
2sd Option: If Rio Tinto incurs additional project expenses of US $ 5 million during the following 2-year period, it will have the right to acquire an additional 14% stake in Opco (holder of the Arcas project), this which will increase its total stake to 65%; and
3rd Option: If Rio Tinto incurs additional project expenses of US $ 16 million during the following 3-year period, it will have the right to acquire an additional 10% stake in Opco (owner of the Arcas project), this which will bring its total stake to 75%.
The technical information contained in this press release has been approved by David O’Connor P.Geo., Chief Geologist for AbraSilver, and a Qualified Person as defined by National Instrument 43-101 Disclosure Standards for Mining Projects.
AbraSilver is an advanced stage exploration company focused on silver and gold. The Company is rapidly advancing its 100% owned Diablillos silver and gold project in the mining-friendly province of Salta in Argentina, which has a measured and indicated resource base of over 160 Moz on a silver equivalent basis or 2.3 Moz on a gold basis.equivalent base. The Company is led by an experienced management team and has long-term supporting shareholders including Mr. Eric Sprott and SSR Mining. Additionally, AbraSilver has a portfolio of early stage copper-gold projects including the Arcas project in Chile where Rio Tinto has the opportunity to earn up to 75% interest by funding up to $ 25 million. US in exploration. AbraSilver is listed on the TSX Venture Exchange under the symbol “ABRA” and in the United States under the symbol “ABBRF”.
Otherwise, please contact:
John Miniotis, President and CEO
Phone. : +1 416-306-8334
This press release includes certain “forward-looking statements” under applicable Canadian securities laws. Forward-looking statements are necessarily based on a number of estimates and assumptions which, while believed to be reasonable, are subject to known and unknown risks, uncertainties and other factors that may cause actual results and future events differ materially from those expressed or implied. by such forward-looking statements. All statements that deal with future plans, activities, events or developments that the Company believes, expects or anticipates will or may occur is forward-looking information. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Therefore, readers should not place undue reliance on forward-looking statements. The Company disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.
Diablillos’ resource estimate complies with NI 43-101. Full details of the mineral resources are available in a company press release dated September 15, 2021. The full technical report, which is prepared in accordance with National Instrument 43-101 – Disclosure Standards for Mining Projects (“NI -43-101 ”) by Mining Plus, will be available on SEDAR (www.sedar.com) under the Company’s issuer profile within 45 days of the press release of September 15, 2021.
Neither the 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 press release.