Rio
Silver Inc. (TSX VENTURE:RYO) is the subject of a
Mining MarketWatch Journal review offering insight and opportunity
afforded investors as Rio Silver is focused on taking its Niñobamba
Silver-Gold Property in central Peru to early resource and
production-ready decision status. RYO.v has exactly the type of
project that makes sense in these markets and management believes
that with modest capex it can make a big dent on creating the size
that is necessary to attract serious money. The property is 100%
owned with no royalty. Management will focus on completing a
resource in the North zone of the project where it has already
established a football field-long block of >2 oz/T silver drilled to
117 metres and discovered a new apparently heap-leachable
Gold-Silver section characterized by high-sulphidation vuggy silica
rock that grades well - all evenly disseminated bulk tonnage and
readily open-pitable.
The full
Mining Journal review may be found at
http://miningmarketwatch.net/ryo.htm online.
Mining MarketWatch
Journal's calculates (back-of-the-envelope extrapolation, non
43-101), based on what is known now from quality deep-trenching that
RYO has completed and limited drilling to date from past operators,
that 30 to 50 million ounces of Silver alone appears achievable on
the North zone alone. That guesstimate ignores Gold credits, and RYO
has figured out where serious Gold is now, plus there is the South
zone which is equally as robust in mineralization.
Niñobamba has two distinct parallel mineralized zones approximately
400 metres apart, the ‘North Zone’ which is a Gold-Silver target and
the ‘South Zone’ which is a Silver target. Past operators Anglo Gold
and Bear Creek drilled 12 holes on both zones when silver was at
$5/oz (obviously searching for a different target at the time). Rio
Silver’s geologists have attained an improved level of
understanding, which eluded past operators, surrounding the chemical
conditions and boiling points in this high-sulphidation system -
RYO has further demonstrated the large silver potential and in the
process zeroed in on where the Gold is via its trenching and
sampling efforts. In 2012 Rio Silver commissioned the local
community to excavate seventeen trenches over sections of both
zones, they were sampled and surveyed every 2 meters revealing
consistent disseminated grades throughout.
When past operator Anglo
Gold drilled the North zone it placed two widely spaced holes; drill
hole AN-2 (part of the aforementioned football field-block of
silver) assayed 87.0 g/t Silver over 130 metres starting from a
depth of only 9 metres, and drill hole AN-1 which intersected some
good gold and silver grades. Rio Silver's North zone trenching
results show that the mineralization in the North zone has a lateral
extent of over 400 metres and that the zone appears to be comprised
of a Gold-Silver zone and a Silver-only zone depending on how high
or low it is in the system. Trench TR-5, which lies along the
surface above drill hole AN-2, assayed a whopping 108.49m of 62.4
g/t Ag and proved this is a very large disseminated silver target.
TR-1, the next trench over on the other side of drill hole AN-2
assayed 56m of 1.03 g/t Au and 98.9 g/t Ag. There are trenches lower
in the epithermal system that yielded solely silver (i.e. trench
TR-13 returned 165.06 g/t Ag over 20.01m, TR-16 returned 99.35 g/t
Ag over 21.05m, and TR-17 returned 37.59 g/t Ag over 41.85m).
The most
interesting discovery was trench TR-4 which was higher up in the
system, it lies along the surface of drill hole AN-1 but extends
beyond the lateral reach of AN-1, goes through an intrusive dyke and
exposes a new gold zone never previously known - the last 21.77m of
TR-04 returned 1.32 g/t Au and 102.46 g/t Ag, additionally multiple
quality-grading samples were taken around and past the later part of
this trench that ends in such good Gold-Silver mineralization.
Much of this high sulphidation mineralization is classic vuggy
silica similar to nearby Hochschild Mining's Crespo Mine, IRL’s
Corihuarmi Gold Mine, and Alamos Gold’s Pico Machay Gold Project -
the potential outcome from this discovery is phenomenal as this is
the ideal type of mineralization for low capex/low-cost heap leach
mining for RYO to springboard off when the time comes. The property
is road accessible, located next to a highway with power, has ample
water, and the topography is amenable to a mining operation. Rio
Silver has a very focused and concentrated area of mineralization,
the deposit sits on a hill, and from what is being seen at surface
the strip-ratio should be exceptional, which lends itself to the
simplicity of knocking it down and setting it out on pads. This is
assuming RYO is fortunate in its metallurgical work and the rock
leaches readily - then you have one of those mining situations that
all miners covet.
RYO.V, with 60,717,849 shares outstanding (plus there are ~21.3M
warrants and options, all out of the money), has a tight share
structure and early investors establishing a long position here to
get this geared-up should make out well. RYO.V is currently trading
well below where this Mining Journal sees the price gravitating to
as the reality of what Rio Silver possess is better understood by
the market place. The board objective is for RYO to build the
dimensions of the North zone, target the vuggy silica gold, nail
down the zonation, and take it all through a preliminary run of
economic studies. Cost-wise, conceivably $1.5 million in total could
achieve matters and take the deposit to where it needs to be to
shape an exit strategy and attract serious attention -- funding this
in stages would make more sense as it avoids too much dilution too
early and shares of RYO.V are apt to rise from here; it is tightly
held and currently dramatically undervalued.
RYO.V is an extreme
bargain and possess remarkable potential. Earlier in 2013, when Gold
and Silver were trading higher, the Chairman of Rio Silver
negotiated a deal with a public company that was prepared to commit
$25 million for work on Rio Silver’s Niñobamba Property and in turn
earn a controlling interest in the property. A Letter of Intent was
prepared, however metal prices dropped precipitously and spooked the
backers of the deal. That deal fell through but it does underscores
the extreme potential that is recognized within Niñobamba by learned
geologists that visited the property and recommended the deal. RYO.V
has the potential to increase its share price several multiples -
the risk-reward characteristics are highly advantageous for
investors establishing a long position in RYO.V now while the
current market cap of RYO.V relative to the inherent value of its
Niñobamba Property is disproportionate.
The full
Mining Journal review may be found at
http://miningmarketwatch.net/ryo.htm online.
This release may contain forward-looking statements regarding future events that
involve risk and uncertainties. Readers are cautioned that these forward-looking
statements are only predictions and may differ materially from actual events or
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purposes and are not solicitations to buy or sell any of the securities
mentioned. Readers are referred to the terms of use, disclaimer and disclosure
located at the above referenced URL.
Contact information:
James O'Rourke
Mining MarketWatch Journal
editor@MiningMarketWatch.net