Target development continues and the Company is fully funded for next phase of drilling once priority targets are defined
Vancouver, British Columbia--(Newsfile Corp. - February 13, 2024) - Silver Dollar Resources Inc. (CSE: SLV) (OTCQX: SLVDF) (FSE: 4YW) ("Silver Dollar" or the "Company") is pleased to provide an update on drill target development work on the underexplored Coloradito-Noria portion of the La Joya silver (Cu-Au) property (the "Property") located in the state of Durango, Mexico.
Figure 1: Coloradito-Noria geology and MAG targets.
Target development work has primarily consisted of geological mapping with limited drill testing to follow up on data from the ground magnetic (MAG) survey conducted in 2022. As previously reported (See news release of December 15, 2022), the MAG survey identified three notable anomalies (Figure 1: S-1, S-2 and S-3):
S-1 is a parallel zone to S-2 located 400 metres (m) to the east in a generally blind area mostly covered with caliche (hardpan) with limited outcrops of limestone and hornfels. Samples assayed from this area have not returned any significant results to date despite the magnetic reactions exhibited by some of the samples.
S-2, located approximately 400 m east of S-3, is now known as the Central Dyke Zone where mineralization is found in association with a dyke that runs north-south to north-northwest through the central part of Cerro Coloradito. This is the priority area for drill target development with exploration results described in detail below.
S-3 is coincident with the Brazo Zone where drill testing in hole NOR-23-030 encountered intense and extensive alteration but did not intersect Brazo style mineralization. A sharp change in angle of the intrusive contact underscores the importance of the structural mapping that has been taking place to better refine targeting for future drilling.
Central Dyke Zone:
Mapping and sampling to date has included the collection of 156 channel samples along with 14 rock samples taken from outcrop and dumps that have delineated the Central Dyke Zone over a strike length of 770 m. Analytical results for all samples have been received with 134 of the 170 samples collected returning assays greater than 100 grams per tonne (g/t) silver equivalent (AgEq). Notably, sample #161 taken from a historical underground working called Hueco Grande returned the highest grade with an assay of 4,311 g/t (or 152.07 ounces per tonne) AgEq (Photos 1 and 2).
Photos 1 and 2: Sample 161 and where it was taken within the Hueco Grande historical working.
The breakdown of the Central Dyke Zone sample assays greater than (>)100 g/t AgEq includes:
67 samples >100ppm AgEq,
39 samples >200ppm AgEq,
20 samples > 400ppm AqEq, and
8 samples >700ppm AgEq.
Note:
The rock samples results and the photograph above are selective by nature and may not be representative of the true grade or style of mineralization across the Property.
The AgEq results disclosed herein assume US$1,750 gold and US$22 silver per/oz, and US$4.30 copper, US$1.25 lead, and US$1.50 zinc per/lb, and 100% metallurgical recovery.
Ongoing work includes additional trenching to further expose, sample, and interpret the Central Dyke mineralization with the aim of refining and defining potential drill targets.
Photos 3 and 4: Trenching in the Central Dyke Zone.
"We are very pleased with the La Joya target development work and particularly the stellar sampling results that have now delineated the Central Dyke Zone over a strike length of 770 metres," said Michael Romanik, president of Silver Dollar. "Notably, sample 161 from the Hueco Grande working returned our highest grade to date on the Property at 152.07 ounces per tonne silver equivalent."
Procedure, quality assurance/quality control and data verification:
All rock samples were taken, described, photographed, and bagged, on site. They were delivered by Silver Dollar staff to ActLabs in Zacatecas, Mexico, ActLabs is ISO 9001:2015 certified. Gold is analyzed by a 30g Fire Assay with AA (atomic absorption spectroscopy) finish, then gravimetric finish if greater than 10ppm Gold. Silver and 34 other elements were analyzed using a four-acid digestion with an ICP-OES (Inductively Coupled Plasma Optical Emission spectroscopy) finish. Silver, lead, zinc, and copper over limits were re-assayed using an ore-grade four-acid digestion with ICP-AES (Inductively coupled plasma atomic emission spectroscopy) finish. Control samples comprising certified reference samples and blank samples were systematically inserted into the sample stream and analyzed as part of the Company's quality assurance and quality control protocol.
About the La Joya Silver Property:
La Joya is an advanced exploration stage property consisting of 15 mineral concessions totaling 4,646 hectares and hosts the Main Mineralized Trend (MMT), Santo Nino, and Coloradito deposits.
The previous operator, Silvercrest Mines, released a Preliminary Economic Assessment (PEA) NI 43-101 Technical Report on the La Joya Property in December 2013. The PEA included a mineral resource estimate on the MMT and Santo Nino deposits (See Table) that was based on 89 holes totaling 30,085 m of Silvercrest's drilling between 2010 and 2012 (See Resource area model). The mineral resource estimate was reported to conform to CIM definitions for resource estimation; however, a qualified person of Silver Dollar has not done sufficient work to classify the historical resource, and the Company is not treating it as a current mineral resource. Independent data verification and an assessment of the mineral resource estimation methods are required to verify the historical mineral resource.
Figure 2: Planview of the MMT, Santo Nino and Coloradito deposits, and Brazo and Central Dyke zones.
The Property is situated approximately 75 kilometres southeast of the Durango state capital city of Durango in a high-grade silver region with past-producing and operating mines, including Silver Storm's La Parrilla Mine, Industrias Penoles' Sabinas Mine, Grupo Mexico's San Martin Mine, Sabinas Mine, First Majestic's Del Toro Mine, and Pan American Silver's La Colorada Mine (See location map). Access and infrastructure near the Property are excellent.
Mike Kilbourne, P.Geo., an independent Qualified Person (QP) as defined in NI 43-101, has reviewed and approved the technical contents of this news release on behalf of the Company.
About Silver Dollar Resources Inc.
Silver Dollar is a mineral exploration company that is fully funded to execute its near-term exploration plans having closed its last financing with lead orders from billionaire mining investor Eric Sprott and NYSE-listed First Majestic Silver. The Company's primary projects lie within Mexico's prolific Durango-Zacatecas silver-gold belt and include the flagship La Joya silver (Cu-Au) property and the Nora silver-gold property. Management has an aggressive growth strategy and is actively reviewing potential acquisitions with a focus on drill-ready projects in mining-friendly jurisdictions.
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ON BEHALF OF THE BOARD
Signed "Michael Romanik"
Michael Romanik, President, CEO & Director Silver Dollar Resources Inc. Direct line: (204) 724-0613 Email: [email protected] 179 - 2945 Jacklin Road, Suite 416 Victoria, BC, V9B 6J9
Forward-Looking Statements:
This news release may contain "forward-looking statements." Forward-looking statements involve known and unknown risks, uncertainties, assumptions, and other factors that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Any forward-looking statement speaks only as of the date of this news release and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise.
The Canadian Securities Exchange (operated by CNSX Markets Inc.) has neither approved nor disapproved of the contents of this news release.
