Silverton Metals Corp (TSX-V:SVTN, OTCQB:SVTNF) said it has entered into a share purchase agreement with Zapata Exploration Ltd to acquire the Margaritas gold-silver property in Durango, Mexico.
Under the agreement, the company said it would be acquiring all of the issued and outstanding shares of Zapata’s Mexican subsidiary Impulsora De Proyectos Mineros, S.A. De C.V.
The Margaritas property consists of two concessions, Margaritas and Ampliacion las Margaritas, totalling 500 hectares. Highlights of the property include an underexplored, high-grade epithermal gold-silver deposit hosted in productive volcanic rocks of the Sierra Madre Occidental.
READ: Silverton Metals hits high-grade silver at its Peñasco Quemado project in Mexico
Gold grades include 73.7 grams per tonne (g/t) in dump samples and 31.6 g/t in rock chip channel samples, with silver grades between 1 to 38 g/t, the company said.
Silverton CEO John Theobald said the company was excited about the acquisition of the Margaritas property because it contained a high-grade gold vein open in all directions with visible gold and the potential to be a bonanza-grade deposit.
"Both the environmental permit application and community agreement process have already commenced, which have given the company a head start on the exploration of the project, We plan to rehabilitate roads, refine mapping and sampling, and get the project ready for drilling before the end of the year, Theobald said in a statement.
Based in Vancouver, Silverton Metals is focused on the exploration and development of quality silver projects.
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