Pino de Plata
Pino de Plata is an epithermal silver/base metal/gold project located in the prolific Sierra Madre Occidental region of Western Chihuahua State in Mexico. The property consists of 397 ha in four concessions containing a number of historic artisanal mine workings dating back to the Spanish Colonial era. The Ag-Pb-Zn-Cu-Au project is strategically located only fifteen (15) kilometres west from Coeur Mining Inc.'s Palmarejo open pit and underground operations and was surrounded by Coeur through the 2015 acquisition of Paramount Gold and Silver, and its adjacent San Miguel Project.
The Company holds a SEMARNAT permit to drill 30 holes, which includes locations for Phase I and Phase II drill programs.
The Company recently retained Eagle Mapping Ltd. (“Eagle Mapping”) to carry out a LiDAR (Light Detection and Ranging) survey over the Property. The Eagle Mapping team mobilized from Mexico City with a local flight base from Ciudad Obregón, southern Sonora, Mexico. Our LiDAR survey results are scheduled to be processed and reported in May 2021.
The Company continues to engage Mexico-based legal counsel to lead the discussions with representatives of the surface landowners of Pino de Plata in order to re-negotiate access rights to their ranch that covers the Pino de Plata project area.
Terms of Agreement
Silver Spruce executed a revised contract in front of the Notary on July 11, 2019 which reaffirms the Company’s purchase rights for 100% interest in the mining claims.
The Property Option Agreement has been revised several times since it was signed originally in July 2015. The Company currently is required to pay $500,000USD in cash and an equal amount in SSE common shares for 100% interest. Silver Spruce has paid $150,000USD and 2.5 million shares at 10cents (50% of total share payment) to date. There is a 3% capped Gross Production Royalty with a $4million buyout and advance royalty payable when Silver Spruce acquires the option of the Property.
Silver Spruce recently announced that its Option Agreement with the concession title owner has been fully processed by the Registro Publico de Mineria ("RPM", Public Mining Registry). In addition, the Certificate of Registration in favor of the widow of the original concession owner confirming her rights as title owner was signed by RPM. The Pino de Plata Agreement registration and the Certificate of Registration was completed on November 7, 2020.
The agreement remains subject to force majeure until access to drill is granted by the surface land owners. As such, the calendar of option purchase payments is frozen until force majeure is lifted.
Although the Pino de Plata project has supported small scale historical production of high-grade mineralization from numerous areas, it had never been systematically explored and has had no drilling. The project area is known to host epithermal mineralization at surface with silver values, on average, of greater than 50 g/t (1.6 opt), over an area of more than 1 square km (>100 Ha) with local targets exceeding 500 g/t Ag. Three types of mineralization include disseminated epithermal mineralization in igneous rock, carbonate replacement mineralization in limestone/marble and sandstone/hornfels, and several areas of significant outcropping vein mineralization. Each of the host areas provide immediate drill targets with open pit potential.
The 2019 field program expanded areas of intrusive-related alteration and mineralization to 50+ hectares, confirmed high silver grades are present on surface at El Terrero and Gossan areas, added three new vein targets at La Perla, Santa Clara and El Muro vein systems, refined drill collar locations and orientations to optimize targeting.
The recent study at Pino de Plata was directed towards understanding the mineralization to be able to further refine the drill program. Several cross sections were laid out for the drill holes recommended for the first phase of drilling. Eight targets were identified for drill testing: gossans in the Gossan zone, skarn/replacements at Santa Elena, the Terrero mine target, the la Perla vein and associated alteration zone, the Santa Clara vein, the Theodora vein, the Sierpe veins and associated alteration, and the newly defined Muro vein. Each of these target areas have outcropping mineralization that has been mapped and sampled.
Based on field observations, the Terrero and Gossan are large targets with potential for encountering wide zones of mineralization. Both areas exhibit strong iron oxides after original sulfide minerals. The combined area of the Terrero and Gossan target alteration is now over fifty hectares. XRF and NIR surveys show anomalous intrusive and replacement-related indicator elements associated elements.
The Terrero target is a relatively flat-lying body that appears to consist of multiple structures associated with strong argillic alteration and abundant iron oxides and jarosite due to oxidation of original pyrite and possibly other sulfide minerals. Surface exposures as well as dumps have yielded high silver and base metal values, and similar assays were reported by the government geological survey from underground workings. Also, similar alteration extending to the west to La Perla and Sierpe and northeast towards Santa Clara indicates potential for extending mineralization along strike, to be tested by drilling. Recent samples confirm the high grades of mineralization previously sampled by the Company and the historical high grades reported by the previous owner and in three previous reports by the Mexico geologic service (Servicio Geologico Mexicano, or "SGM").
The gossans have elevated base metal values and seem to be related to oxidation of replacement mineralization. They may be partly controlled by northerly and easterly structures similar to other areas on the project. Oxidized zones in the intrusive near the contact with hornfels away from the main gossan exposures may be indicative of similar targets in the subsurface. Highly anomalous levels of silver, lead, zinc, copper and iron at the surface of the heavily weathered gossan is likely leftover from the original sulfide mineralization (i.e., Argentite-AgS, Galena-PbS, Sphalerite-ZnS, Chalcopyrite-CuFeS2, Pyrite-FeS2) which has been leached by weathering from surface outcrop. Enriched mineralized layers of rock may exist below the surface and will be drill tested.
The strongly altered rocks around the Sierpe I vein also have visually high iron content apparently after sulfides that extends underneath younger volcanic rocks and also comprises a large target that surrounds the vein itself. The high grades of silver sampled at the Sierpe I vein is contained within a large volume of altered intrusive rock that extends 850 metres west from the Terrero mine area. This rock may contain disseminated mineralization and could host a large volume of mineralized rock from surface.
The Company has completed a 43-101 exploration assessment on the property in 2015 and based on high silver values in surface channel samples (>500 opt Ag) is pursuing a targeted exploration program which will include geophysics, geochemistry and a drilling program with thirty permitted sites on several discrete target types. Phase 1 drilling was recommended on eight targets were recommended for initial drill testing by twelve holes and include gossans in the Gossan zone, skarn/replacements at Santa Elena, the Terrero mine target, the la Perla, Santa Clara, Theodora and Sierpe veins and their associated alteration, and the newly defined Muro vein.
The Company holds a SEMARNAT permit to drill 30 holes, which includes locations for Phase I and Phase II drill programs. All planned Phase I HQ core drill holes (12 DDH for 2,000 metres) will be collared on existing roads that pass over or adjacent to the targets, with no new access roads required.
A surface access agreement was in place to obtain the environmental permit, but has since been withdrawn by the landowner in July 2019. No ground exploration was conducted since that date. The Company recently retained Eagle Mapping Ltd. (“Eagle Mapping”) to carry out a LiDAR (Light Detection and Ranging) survey over the Property. The Company continues to engage with the landowner negotiations now that the registration of both the claim ownership and the Agreement inherent in the terms under consideration, has been completed.
Samples were prepared and analyzed by ALS Global, a certified worldwide analytical services provider at their facilities in Chihuahua and Vancouver, respectively. Analysis was by the AuME-TL43 method, with analysis of all elements by ICP-MS and ICP-AES with aqua regia digestion. Au was determined as part of the package with a 25 gram digestion. Over-limits for Ag and Pb, values of >100g/t and >10,000ppm, respectively, were completed by the OG-46 method by ICP and aqua regia digestion. Dr. Gibson supervised the data collection and sampling at the project as well as data compilation, drafting and interpretation. The Company uses standard QA/QC procedures, including inserting control samples, standards and blanks, in the sample stream. No quality assurance/quality control issues have been identified to date.
Greg Davison, MSc, PGeo, VP Exploration and Silver Spruce Director, is the Company’s internal Qualified Person for the Pino de Plata Project and is responsible for approval of this technical content within the meaning of National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101"), under TSX guidelines.
Dr. Craig Gibson, Ph.D., CPG, is the Company's external Qualified Person for the Pino de Plata project and is responsible for the technical content of the project activity reports within the meaning of National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101"), under TSX guidelines.
May 3, 2019Field Program
April 30, 2019Selected Assays
July 7, 201543-101 Technical Report on the Pino de Plata Property
May 31, 2015Selected Assays