Kingsmen Resources (KNG-V) Signs Letter Of Intent To Acquire Los Colorados Project In Chihuahua Mexico
Sept 29, '22 - NR
On Sept. 21, 2022, and Sept. 26, 2022, Kingsmen Resources Ltd.'s Mexican subsidiary Leona Silver Exploraciones SA de CV signed two non-binding letters of intent with Minera Sierra Almolya SA de CV, Luz Adriana Ramos Garcia and Fermin Eduardo Ramos Garcia to acquire a 100-per-cent interest in Los Colorados gold-silver-copper-lead-zinc project in Chihuahua, Mexico. The project area includes Los Colorados mine and surrounding claims. The company is now working toward a definitive agreement.
The project area is located approximately 30 kilometres southeast of the city of Hidalgo de Parral and 40 kilometres east of the mid-Tertiary polymetallic quartz sulphide vein deposits of the San Francisco del Oro and Santa Barbara mining districts, which are amongst the largest Pb-Zn-Cu-Ag deposits in Mexico (1) (2). In 1988, these districts were estimated to have produced, since 1650, over 13 billion grams (440 million ounces) of silver (1).
Historic mining by the American Smelting and Refining Company (ASARCO) in the project area was conducted between 1906 and 1952 with production from La Soledad, Santo Nino, Eva and Rosario veins. There are no records of production. The project area has recently been consolidated and is located within a well-established mining district, with the local communities fully supportive of mineral exploration.
"I am very excited about the opportunity to acquire the Los Colorados project," stated Scott Emerson, president and chief executive officer of Kingsmen. "I believe the project presents an exceptional opportunity to build a significant resource and to further explore the project area. Despite the long production history in the area, only 10 holes have been drilled over the project area due to the past fragmentary property ownership, and now that the area has been consolidated, it presents tremendous opportunity to make new discoveries. In making this acquisition, Kingsmen is effectively following a well-established business model of exploring an old and underexplored mining district."
Las Coloradas project is an epithermal, high-grade, narrow-vein, silver-gold-copper-lead-zinc project within the carbonate replacement deposit belt of Chihuahua state, Mexico. Outcropping mineralization is hosted by the Mezcalera lower Cretaceous formation. The Mezcalera formation is of similar age and composition to the Parral formation that hosts the mineralization in the San Francisco del Oro and Santa Barbara districts (3).
Historic mining and recent, limited diamond drilling (7,703.45 metres in 10 holes) have intersected three distinct styles of mineralization on the property vein, porphyry and skarn (4). These remain the targets for future drilling. No significant deep drilling has taken place on the project. More than 20 veins are known with most past production having come from the northwest-trending Soledad vein system. There are numerous old mining works visible (pits, shafts and superficial stopes) with depths of 10 metres to 140 metres on the main shafts.
In the letter of intent, the terms of the acquisition call for Kingsmen to make payments over a seven-year period for a total of $2.14-million (U.S.) and a purchasable 2.5-per-cent net smelter royalty.
The transaction will constitute a fundamental acquisition for Kingsmen and will be an arm's-length transaction, further details of which will be announced upon signing of the definitive agreement, which will be subject to TSX Venture Exchange approval.
The scientific and technical disclosure in this news release has been reviewed and approved by Dr. Kieran Downes, PhD, PGeo, a qualified person as defined by National Instrument 43-101. Dr. Downes is a consultant to Kingsmen.
(1) G.J. Grant and J. Ruiz (1988), The Pb-Zn-Cu-Ag deposits of the Granadena mine, San Francisco del Oro-Santa Barbara district, Chihuahua, Economic Geology (1988), Volume 83, pages 1,683 to 1702.
(2) P.K. Megaw, J. Ruiz and S.R. Titley (1988), High-temperature, carbonate-hosted Ag-Pb-Zn (Cu) deposits of northern Mexico, Economic Geology (1988), Volume 83, pages 1,856 to 1,885.
(3) J.M. Texidor Carlsson and V. Wilson (2020), National Instrument 43-101 technical report on the Parral project, state of Chihuahua, Mexico.
(4) M. Luna (2020), Las Coloradas project, Minera Argentita Exploracion confidential internal report.
About Kingsmen Resources Ltd.
Kingsmen is currently focused on district-scale exploration for precious metals in the prolific mining districts of Parral, Mexico. The proposed acquisition of Los Colorados project in Mexico will give the company a renewed focus on exploration, development and production. In addition, the company holds a 1-per-cent NSR on La Trini project, which forms part of Los Ricos North project currently being explored by GoGold Resources in the state of Jalisco state, Mexico.
Signed: “Scott Emerson” President & CEO
Phone: 6046859316
Email: se@kingsmenresources.com |
