Tier One Silver Options the Hurricane Silver Project in Southeastern Peru
May 3rd 2021 - NR
Tier One Silver is pleased to announce that it has entered into a share purchase option agreement with Pembrook Copper Corp. to acquire Pembrook’s Peruvian subsidiary, Compañia Minera Tororume S.A.C., which owns the Hurricane silver project located in southeastern Peru. Hurricane covers approximately 25,640 hectares, has numerous high-grade silver showings and is located approximately 66 kilometres (km) north of the city of Cusco (Figure 1). Option agreement details follow below.
The property’s numerous high-grade silver occurrences have been identified through first pass reconnaissance rock sampling of the Hurricane project by a previous operator. The largest of these occurrences is located at the Magdalena prospect, which is characterized by a 1.5 km shear zone where multiple high-grade veins have been identified with chip sample values of up to 1.4 meters (m) of 1,175 g/t silver, 2.1 m of 792 g/t silver, 2.5 m of 589 g/t silver and 14 m of 100 g/t silver. Past grab sample highlights from four additional prospects at the project are listed below in Table 1 and demonstrate the potential for high-grade silver and base metal mineralization (Figure 2). Table 2 illustrates the total number of samples taken from each of these prospects and their ranges of silver grades (also see cautionary notes about sampling).
A Message from Peter Dembicki, CEO & Director:
“We’re very excited about this acquisition because it provides additional premier silver exploration opportunities within our portfolio. We look forward to exploring and advancing Hurricane towards a drill-ready stage next year, as our primary focus remains on Curibaya, where drilling is anticipated to commence in the second half of May.“
Table 1: Rock sampling highlights from high-grade silver prospects at the Hurricane project (collected by a previous operator and database made available to Tier One):
ProspectSample IDAg (g/t)Pb (%)Zn (%) | Collquemarca | RS508913 | 300 | 8.61 | 30.40 | | RS002167 | 196 | 4.77 | 14.50 | | RS002169 | 180 | 11.70 | 15.85 | | RS508912 | 174 | 15.05 | 4.17 | | RS002168 | 167 | 12.70 | 2.66 | | Melissa | RS002278 | 1,155 | 16.60 | 17.95 | | RS007543 | 626 | 0.25 | 0.35 | | RS002280 | 324 | 8.74 | 3.50 | | RS007536 | 139 | 0.09 | 0.10 | | RS002276 | 125 | 1.18 | 0.77 | | RS007530 | 54.9 | 0.57 | 0.48 | | Pampayeoc | RS100128 | 838 | 0.03 | 0.30 | | RS100117 | 821 | 0.08 | 0.30 | | RS007518 | 387 | 1.68 | 1.61 | | RS007079 | 316 | 9.73 | 0.57 | | RS100118 | 259 | 0.06 | 0.35 | | RS100119 | 179 | 0.01 | 0.12 | | RS100120 | 172 | 0.01 | 0.11 | | RS007085 | 147 | 0.03 | 0.09 | | RS100126 | 112 | 0.07 | 0.19 | | RS007083 | 83.2 | 0.29 | 0.16 | | RS007080 | 71.6 | 1.85 | 1.07 | | RS007678 | 71.5 | 0.05 | 0.06 | | RS007062 | 65.8 | 0.09 | 0.36 | | San Pedro | RS502420 | 3,760 | 0.28 | 1.23 | Table 2: Total number of rock samples and ranges of silver grades from high-grade silver prospects: Hurricane Project (interval of collection not known to Tier One):
OccurrenceTotal # of SamplesAg
< 10 g/tAg
10 – 30 g/tAg
30 - 50 g/tAg
50 - 100 g/tAg
> 100 g/t | Collquemarca | 32 | 27 | - | - | - | 5 | | Melissa | 41 | 33 | 2 | - | 1 | 5 | | Pampayeoc | 90 | 59 | 14 | 4 | 4 | 9 | | San Pedro | 18 | 17 | - | - | - | 1 | | Magdalena | 441 | 313 | 40 | 16 | 22 | 50 | | Total | 622 | 449 | 56 | 20 | 27 | 70 | A Message from Michael Henrichsen, Chief Geologist:
“The Hurricane silver project is within an underexplored region of Peru that we believe holds excellent potential for discovery with multiple overprinting mineralizing events. The early-stage nature of the project and exceptional silver grades from reconnaissance rock sampling further demonstrate discovery potential. We look forward to beginning systematic exploration programs in the coming months.”
Hurricane Project Geology and Precious Metal Prospects:
Geologically, the Hurricane project is situated in an underexplored segment of the Pisco-Abancay Deflection zone, which has seen multiple mineralizing events, and therefore may host different styles of precious metal mineralization. The Hurricane project was originally assembled based on the results of a high-quality regional stream sediment survey, which was undertaken in 2007-2009. Precious and base metal stream sediment anomalies from this survey are highlighted in Figures 3-6.
The Hurricane project geology is composed of a northwest trending fold and thrust sequence of Ordovician to Devonian sedimentary rocks that are associated with orogenic gold mineralization. Extensive placer gold workings to the north of the Hurricane project point to a potential source within the project. Data made available to Tier One confirms past exploration at the Hurricane project included rock samples of up to 19 g/t gold at the Perseverancia prospect.
Subsequent to the orogenic gold mineralization event, there have been numerous magmatic events that are associated with both precious and base metal mineralization. In particular, Eocene to Miocene aged intrusives are believed to be associated with silver-rich intermediate sulphidation epithermal veins. These have been recognized in several prospect areas, including the Magdalena, Collquemarca, Pampayeoc, Melissa and San Pedro prospects. The Magdalena prospect is characterized by multiple silver-rich veins that are exposed over a 1.5 km strike length. Chip sampling highlights are presented below in Table 3.
Table 3: Magdalena prospect chip sampling highlights (taken by previous operator):
Ag (g/t)Length (m) | 1,175 | 1.4 | | 792 | 2.1 | | 589 | 2.5 | | 291 | 1.7 | | 233 | 2.5 | | 185 | 2.1 | | 108 | 1.95 | | 107 | 1.7 | | 100 | 1.5 | | 100 | 2.8 | | 100 | 14 | Other precious metal prospects are summarized below in Table 4. Collectively, these prospects have only seen first pass reconnaissance sampling and must still be evaluated by Tier One’s technical team to prioritize systematic exploration work and advance toward drill stage.
Table 4: Hurricane Precious Metal Prospects:
ProspectMetalsStream GeoComments | Perseverancia | Ag-Au-Pb-Zn | Au-Ag-Cu
anomaly | Series of narrow vein zones exploited by the Hochschild Group during the 1930s | | Collquemarca | Ag-Pb-Zn | | Cliff-edge exposures of a 50 m wide shear zone with colonial adits into massive sulphide lenses | | Pampayeoc | Ag-Pb-Zn | Strong Ag-Pb-Zn | Zone of shallow pits on zones of magnetite-replacement with elevated Ag-Pb-Zn mineralization | | San Pedro | Ag-Pb-Zn | | Series of shallow pits along-trend of Mascabamba; reported mining during the 1960s | | Magdalena | Ag-Pb-Zn | Strong Ag-Cu-Pb anomalies | Multiple shear-veins with high-grade Ag over narrow widths (1.4m at 1,175 g/t Ag) | | Melissa | Ag-Pb-Zn-Pt | Ag anomaly | Zone of colonial workings coincident with regional thrust fault | Exploration Plans:
Tier One plans to advance the project by conducting further reconnaissance style exploration, including geologic mapping, soil and rock sampling programs, as well as geophysical surveys to define drill targets across the 25,640-hectare property. An NI 43-101 compliant Technical Report on the Hurricane project will be prepared before material expenditures are incurred.
Terms of the Option Agreement to Acquire Hurricane:
Under the terms of the Share Purchase Option Agreement, dated April 28, 2021, Tier One has the option to acquire 90% or 100% of the shares of Compañia Minera Tororume S.A.C., the private Peruvian company that owns the rights to the Hurricane project. In order to acquire 90%, Tier One has up to five years, from the date it secures the access agreement for the surface rights (“Access Date”), to make option exercise payments of US$4.68 million and assumes an obligation to carry all expenses until production. To acquire 100%, Tier One can buy the final 10% of Compañia Minera Tororume S.A.C for a further US$10,000,000 (total cost for 100% being US$14.68 million) within five years from the Access Date. Tier One is also required to conduct up to US$10.75 million in exploration over the same five-year option period, however exploration requirements cease once the option is exercised, which can be done at any time at Tier One’s election. Tier One also has the right to make option payments in cash or Tier One shares, subject to any required stock exchange approvals. The Access Date is when the access agreement and permits are secured, which is expected to occur over the next 12 months, and the majority of the option payments and work obligations are in the last two years of the five-year option period.
Figure 1: Illustrates the position of the Hurricane project in southeastern Peru approximately 60 km north of Cusco.
Figure 2: Illustrates rock grab sample highlights in silver grades from across several prospect areas within the Hurricane project area.
Figure 3: Illustrates anomalous silver in drainage basins at the known prospects.
Figure 4: Illustrates anomalous gold in drainage basins at the known prospects.
Figure 5: Illustrates anomalous copper in drainage basins at the known prospects.
Figure 6: Illustrates lead-bismuth-zinc anomalies in drainage basins that are interpreted to be associated with intermediate sulphidation styles of mineralization.
Michael Henrichsen (Chief Geologist), P.Geo is the QP who assumes responsibility for the technical contents of this press release.
ON BEHALF OF THE BOARD OF DIRECTORS OF TIER ONE SILVER INC.
Peter Dembicki
President, CEO and Director
For further information on Tier One Silver Inc., please visit www.tieronesilver.com or contact Natasha Frakes, Manager of Corporate Communications at (778) 729-0600 or info@tieronesilver.com.
About Tier One
Tier One Silver is an exploration company focused on creating value for shareholders and stakeholders through the discovery of world-class silver, gold and base metal deposits in Peru. The Company’s management and technical teams have a strong track record in raising capital, discovery and monetization of exploration success. The Company’s exploration assets in Peru include: Emilia, Coastal Batholith, the Corisur project and its flagship project, Curibaya, which is rapidly advancing toward its first drill program. Tier One is currently an unlisted reporting issuer and is seeking Canadian and U.S. listings with a targeted first listing early in the second quarter of 2021. For more information, visit www.tieronesilver.com. |
