Silvermex Resources Ltd. has entered into an option agreement to acquire a 100-per-cent interest in the Lety property located in the municipality of Santa Maria del Oro, Durango, approximately 230 kilometers North West straight line from the city of Durango, Mexico. The Lety property consists of three mining concessions covering 5,130 hectares in the Northern portion of the state of Durango (of that surface, 4,867 hectares were staked directly by Silvermex), and are located near the historical mining districts of Magistral del Oro, Santa Maria del Oro and Guanacevi, in the Sierra Madre Occidental of Mexico.
The regional geology is represented by rhyolithic and andesitic rocks overlaying sedimentary cretaceous limestones and metamorphic rocks. The mineralization is controlled by a system of regional faults trending North West. The property mineralized structures lie along the great Rodeo regional fault, known to host over 200 small bonanza grade mines that have operated intermittently since early Spanish Colonial times.
Preliminary reconnaissance work done by the Company identified two Silver mineralized rhyolithic breccia structures, intensely oxidized with abundant hematite and limolite, trending NW 30, (same as the Guanacevi and Magistral vein systems), with widths ranging between 10 to 15 meters and outcropping for more than 1,000 meters along strike. The system is exposed for at least 150 meters of elevation change. Preliminary outcrop rock sampling by Silvermex on both structures returned assays ranging from 80 to150 g/t Ag and 0.5 g/t Au. In addition parallel to this principle system, a 15 meter wide andesitic dyke outcropping for more than 1,000 meters was identified. Preliminary sampling on this dyke returned values of 45 g/t Ag.
Silvermex technical staff believe the correlation of the structures with the Guanacevi, Santa Maria del Oro and Magistral del Oro mining districts, the intense oxidation suggesting supergene enrichment zones at the higher stratigrafic elevations and the presence of sedimentary cretaceous rocks suggesting contact metamorphic mineralization in the lower stratigraphic sections make the Lety Property highly prospective.
In order to exercise the option to acquire the property, Silvermex Resources Ltd. must pay a total of $250,000 (U.S.) and issue 250,000 shares in the Company over a two year option period, with equal payments every six months, and once the said option is exercised, the property not originally staked by Silvermex shall be fully transferred to Silvermex Resources Ltd. Moreover, Silvermex must spend as a minimum investment the amount of $500,000 (U.S.) during the first year of the option and another $500,000 (U.S.) during the second year. The vendor shall keep the right to be paid an additional 250,000 shares or $1,000,000 (U.S.), at vendors' option, on or before the earlier of the commencement of commercial production of the project or five years as of the date of signing of the option agreement, whichever comes first. The Vendor is an arm's-length party and retains no royalties on the property.
In addition to the above, the company will pay a finder's fee of 250,000 shares to Guillermo Garcia Hoyos, with 25,000 shares issuable upon exchange acceptance and six future releases of 37,500 shares each every six months from the issuance date.
Silvermex will soon commence systematic exploration on this property.
The acquisition is subject to acceptance by the TSX Venture Exchange.
Pursuant to National Instrument 43-101, Darcy Krohman, P.Geo., C.A,. Executive Vice-President and CFO of Silvermex Resources Ltd. is the Qualified Person (QP) responsible for the disclosure in this news release. Field work has been conducted by Silvermex Resources Ltd. employees and contractors.
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