Highlander Silver Corp. [HSLV-CSE] said it has completed the acquisition of the San Luis project in Peru from SSR Mining Inc. [SSRM-TSX, SSRM– NASDAQ], an asset that Highlander sees as potentially transformational for the company.
The San Luis Project is district-scale, with the mining concessions covering 23,098 hectares, or approximately 230 square kilometres.
“We believe that the historical resource at the Ayelen – Ines vein system may be one of the highest-grade gold silver deposits yet to be mined in the world, and we are very excited about the exploration potential given this district-scale property has only been partially prospected and explored,’’ said Highlander President and CEO David Fincham. “As such the acquisition has the potential to be transformative for Highlander Silver in delivering a world-class gold silver project that can benefit all our stakeholders.’’
The San Luis Project has a historical measured and indicated mineral resource estimate of 348,000 ounces of gold, grading 22.4 g/t gold and over 9.0 million ounces of silver grading 578.1 g/t silver. Test work developed on the historical mineral resource projected gold and silver recoveries of greater than or equal to 90% using conventional cyanide leach processing methods. The company says it plans to undertake work to verify and update conventional cyanide processing methods.
Following the discovery of the Ayelen – Ines vein system, where the historical resource is located, the main focus of previous exploration was on resource development, meaning systematic exploration has yet to be completed across much of the property.
Targets on the property include the low to intermediate sulfidation epithermal gold-silver veins, copper – molybdenum porphyries, silver, lead, zinc and copper hydrothermal breccias and silver, lead, zinc plus copper replacement mantos.
Highlander Silver, backed by the Augusta Group and the Lundin Family, is focused on the discovery of silver-gold-polymetallic projects in the Central Andes, leveraging the team’s significant technical and operational experience in Peru and South America.
The company is currently developing the La Estrella and Alta Victoria projects in central Peru.
Highlander said its technical team aims to start the first exploration phase at San Luis by conducting prospecting work on what are considered to be the most prospective parts of the vein field, around known high grade mineral occurrences and on the underexplored areas in between them.
It said the primary objective of this phase is to define and prioritize drill targets that have the potential to yield bonanza grade Ayelen- Ines vein style mineralization.
Under a share purchase agreement, Highlander acquired 100% interest in San Luis through the purchase of SSR’s direct and indirect shareholdings of four subsidiary companies in return for an initial payment of US$5.0 million in cash.
The company may pay up to an additional US$37.5 million in cash to SSR Mining upon the completion of certain milestones in relation to the San Luis Project.
On Friday, Highlander Silver shares were unchanged at 74 cents and currently trade in a 52-week range of 34 cents and 20 cents.
