Jan 24 2013
Prospero Silver Corp. (the "Company") is pleased to announce that it has signed option agreements enabling it to earn 100% of two additional claims, Sucara (71.53 hectares) and Dos Amigos (90.39 hectares), within the northern Cebollas target area of the Baborigame district. With these agreements in place the Baborigame district claim block is essentially 100% controlled and covers all exploration targets identified in the project area. Drilling is anticipated to commence in February.
Prospero signed the agreements for the two claims with underlying claimholder Compañia Minera Terciario, SA de CV ("Terciario"). These will be integrated into and funded under the joint venture agreement between Minera Fumarola, SA de CV (a 100% owned Mexican subsidiary of Prospero Silver Corp) and Minera Hochschild Mexico, SA de CV (see News Release of August 14, 2012). Under the terms, Terciario and the joint venture will have the option to earn a 100% interest in the mining rights of the two claims by making escalating cash payments totaling US$500,000 within 4 years.
The Cebollas target has potential to host both a disseminated style of deposit suited to open pit mining, as well as the vein style of deposit that has been historically identified and mined in the district. Work on the two new claims indicates a soil anomaly measuring 1,300m by 500m that includes gold values exceeding 100 ppb. Surface rock chip geochemistry within the same area indicates gold values ranging from 0.3 ppm to 16 ppm Au in 51 of the 130 samples taken. The presence of gold anomalies in soils and in rock chips is consistent with anomalies in the adjacent Cebollas area. The host of the anomalies appears to be the same felsic extrusive and intrusive dome complex which shows, where exposed, anomalous soil and rock chip geochemistry over a total identified area 2.5km long and 1.0km to 1.5km wide.
Hochschild and Prospero are preparing Baborigame for a drilling program. Proposals from drilling companies are currently under evaluation, and drilling is anticipated to start after a contractor is selected.
Tawn Albinson, M.Sc., the President of the Company, is a Qualified Person, as defined in NI 43-101, and is responsible for the technical content of this press release and quality assurance of the exploration data and analytical results.