VANCOUVER, Sept. 05, 2019 - Latin Metals Inc. ("Latin Metals" or the "Company") - (TSXV: LMS) (OTCQB: CTMID) announces that it has completed initial exploration at the La Flora (“La Flora”) and Cerro Bayo (“Cerro Bayo”) gold projects (together the “Projects”), located in Santa Cruz Province, Argentina. Latin Metals has an option to acquire up to a 100% interest in the La Flora and Cerro Bayo properties by way of staged cash and common share payments, subject to a net smelter returns royalty in favour of the underlying vendor (news release dated March 8, 2019). The Projects form part of a larger land package of prospective gold and silver exploration properties in Santa Cruz, which are held under option and total more than 30,000 hectares in area.
The La Flora and Cerro Bayo properties are located close to three precious metals prospects, which have been subject to recent active exploration (Figure 1); Virginia Project (Mirasol Resources Ltd.), San Augustine Oeste Project (Hochschild Mining), and the Verde Project (Yamana Gold). The exploration target for Latin Metals at the Projects is epithermal, bonanza-style vein gold and silver mineralization
La Flora Exploration and Results
Five rock samples taken by Latin Metals during recent exploration returned very encouraging results ranging from 0.35 g/t gold to 14.88 g/t gold (Table 1). These results reflect sampling at two mineralized zones, located approximately 6km apart.
Table 1: Results from Initial Rock Sampling at La Flora Project
|Sample ||Mineralized Zone ||Gold (g/t) ||Silver (g/t) |
|029 ||East Zone ||14.88 ||55.8 |
|030 ||10.05 ||39.8 |
|031 ||0.35 ||27.6 |
|032 ||West Zone ||0.61 ||21.4 |
|033 ||3.68 ||8.7 |
The occurrence of high-level epithermal vein textures at La Flora, together with reported bonanza gold and silver grades, suggest excellent potential for discovery of an intact low to intermediate sulphidation epithermal precious metal vein system, at depth or along strike from the identified mineralization.
The La Flora property is approximately 50 square kilometers in area. The East Zone of mineralization is characterized by a prominent ridge and upstanding linear silicified structures. A second sub-parallel structure was observed 100m to the west. The West Zone (Plate 1) is characterized by a vein accompanied by an anastomosing network of narrow veins, with sub-crop and float of epithermal quartz vein material.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/05866f11-93d2-4953-8914-f3a53d11b8ee
Plate 1: La Flora West Zone. Photo 31 - banded crustiform-colloform, crystalline-chalcedonic quartz vein. Photo 32 - Crystalline quartz replacing bladed calcite/barite
Evidence in the field suggests that prospects within the property have been sampled previously by at least two operators, and diamond cut channel samples were observed at two mineralized prospects. In addition, two reverse circulation drill collars were observed just outside the concession boundary but oriented towards mineralized structures within the concession. The claims surrounding La Flora are currently owned by Mirasol Resources and Hochschild Mining.
Cerro Bayo Exploration and Results
Five rock samples taken by Latin Metals returned encouraging results ranging from 0.08 g/t gold to 1.55 g/t gold, and from 5.1 g/t silver to >100 g/t silver (Table 2). These results reflect sampling at mineralized zones, located approximately 7km apart.
Table 2: Results from Initial Rock Sampling at Cerro Bayo Project
|Sample ||Mineralized Zone ||Gold (g/t) ||Silver (g/t) |
|034 ||Cerro Bayo Oeste ||0.36 ||54.6 |
|035 ||1.55 ||>100 |
|036 ||0.16 ||8.8 |
|037 ||0.67 ||>100 |
|038 ||Los Amigos ||0.08 ||5.1 |
The occurrence of a preserved chalcedonic-micro-crystalline silica cap at the Los Amigos Zone indicates a preserved, high-level epithermal system, with potential for additional mineralization at depth or along strike. As a result, the Los Amigos Zone (Plate 2) is the priority target for follow-up. Coarse, crystalline quartz veins at Cerro Bayo Oeste is characteristic of a moderate to deep epithermal environment, which interpretation potentially down-grades this target.
The Cerro Bayo project is approximately 80 square kilometres in area. The higher priority Amigos Zone is characterized by outcrops of silicified rhyolite with fine-grained, crystalline drusy quartz associated with illite-sericite alteration, together with silicified structures and chalcedony veins. A prominent summit comprises a preserved silica cap with common jarosite and haematite.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/bb21b0f3-2a1b-48b5-8312-bbb9045c18b3
Plate 2: Los Amigos Zone. Photo 45 – massive and brecciated chalcedonic-microcrystalline silica. Photo 46 – fine-bedded chalcedonic-microcrystalline silicified tuff or sediments.
The Cerro Bayo project was previously explored and drilled by Exeter Resources and also by Mariana Resources (now New Dimension Resources) in joint venture with Hochschild Mining.
Both La Flora and Cerro Bayo have indications of economic potential and have been prioritized for additional exploration. Next steps at both projects will be detailed mapping and sampling to identify and test all outcropping mineralized zones on the property, with a view to generating drill targets within the coming 6 to 12 months.
Quality Assurance / Quality Control
Exploration was supervised by Richard A Jemielita PhD of Mineral Exploration Consulting Ltd. (UK). Samples were collected on site and then sealed and shipped to SGS Minerals (“SGS”) for analysis. SGS's quality system complies with the requirements for the International Standards ISO 9001:2000 and ISO 17025: 1999.
Keith J. Henderson, P.Geo., is the Company's qualified person as defined by NI 43-101 and has reviewed the scientific and technical information that forms the basis for portions of this news release. He has approved the disclosure herein. Mr. Henderson is not independent of the Company, as he is an employee of the Company and holds securities of the Company.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/adf24bae-54b2-4475-ade5-9cc5b1f446ad
Figure 1: Location of the La Flora and Cerro Bayo projects, together with other Latin Metals’ projects in Santa Cruz Province, Argentina.
About Latin Metals
Latin Metals is a mineral exploration company acquiring a diversified portfolio of assets in South America. The Company operates with a Prospect Generator model focusing on the acquisition of prospective exploration properties at minimum cost, completing initial evaluation through cost-effective exploration to establish drill targets, and ultimately securing joint venture partners to fund drilling and advanced exploration. Shareholders are exposed to the upside of a significant discovery without the dilution associated with funding the highest-risk drill-based exploration.
Among the Company’s asset portfolio, key assets include the Organullo Gold project; a 100%-owned property in which Yamana Gold Inc. are earning an initial 70% interest through various work commitments and cash payments (for additional details, see news release dated October 22, 2018).
On Behalf of the Board of Directors of
Latin Metals Inc.
President & CEO
For further details on the Company readers are referred to the Company's web site (www.latin-metals.com) and its Canadian regulatory filings on SEDAR at www.sedar.com.
For further information, please contact:
1177 West Hastings Street
Vancouver, BC, V6E 2K3
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Cautionary Note Regarding Forward-Looking Statements
This news release contains forward-looking statements and forward-looking information (collectively, "forward-looking statements") within the meaning of applicable Canadian and U.S. securities legislation, including the United States Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, included herein including, without limitation, the change of the Company's corporate name, the expected effective date of the Consolidation and the expected outstanding Shares after the completion of the Consolidation and the anticipated business plans and timing of future activities of the Company, are forward-looking statements. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are typically identified by words such as: "believes", "will", "expects", "anticipates", "intends", "estimates", "plans", "may", "should", "potential", "scheduled", or variations of such words and phrases and similar expressions, which, by their nature, refer to future events or results that may, could, would, might or will occur or be taken or achieved.
Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks and other factors include, among others, actual results of exploration activities, the fact that the Company's interests in its mineral properties are only options and there is no guarantee that the interests, if earned, will be certain, requirements for additional capital, future prices of precious metals, copper-gold and lithium, changes in general economic conditions, changes in the financial markets and in the demand and market price for commodities, other risks of the mining industry, the inability to obtain any necessary governmental and regulatory approvals (including TSXV approval of the name change and the Consolidation), changes in laws, regulations and policies affecting mining operations, hedging practices and currency fluctuations, as well as those factors discussed under the heading "Risks and Uncertainties" in the Company's most recent management's discussion and analysis and other filings of the Company with the Canadian Securities Authorities, copies of which can be found under the Company's profile on the SEDAR website at www.sedar.com.
Readers are cautioned not to place undue reliance on forward-looking statements. Except as otherwise required by law, the Company undertakes no obligation to update any of the forward-looking information in this news release or incorporated by reference herein.