Plata Latina's initial discovery, Naranjillo, is located in the central part of the Mexican Silver Belt in the state of Guanajuato approximately 32 kilometres north-northwest of the city of Celaya and consists of 20,655 hectares. The property is situated approximately 35-40 kilometers southeast of the Guanajuato silver and gold district, which has historically produced an estimated 1 billion ounces of silver, and is on the same structural trend that hosts Guanajuato's veins.
Drilling at Naranjillo has discovered veins identical to Guanajuato's Veta Madre ore bodies in mineralogy, texture and silver-gold grade. Initial drilling discovered a blind epithermal vein system with values up to 17,833 g/t silver and 71.81 g/t gold over 1.60 metres within the Company's discovery hole, BDD-N-10, which averages 3,181 g/t silver and 13.28 g/t gold over 10.95 metres on the Villa vein.
Plata Latina has signed a purchase option with Fresnillo, subject to TSXV approval, giving Fresnillo the option to acquire 100% of Naranjillo on the following terms:
- Cash commitment of US$2.15 million payable over three years
- Fresnillo required to spend US$3 million in exploration
- Plata Latina retains upside through a 3% NSR, purchasable by Fresnillo for US$6 million
- Plata Latina to receive minimum advance annual royalty payments of US$100,000 after three years (total limited to US$1,000,000)
The discovery and subsequent LOI with Fresnillo, the world's largest silver producer, confirms the effectiveness of Plata Latina's innovative exploration strategy.
Note: All samples and drilling results disclosed have been reviewed, approved and verified by Michael Clarke, a Qualified Person as defined under National Instrument (NI) 43-101. Mr.Clarke is the President and CEO of Plata Latina Minerals and has been a geologist for more than 40 years, including extensive work on numerous epithermal gold and silver vein deposits in Mexico.