Prospero Silver Corp.
Prospero Silver Corp.
News
News Releases
Show printable version of 'Prospero Clarifies Historic Production and Technic...' in a New Window
 July 27, 2010
Prospero Clarifies Historic Production and Technical Disclosures Related to its Baborigame, Cordero and Campana Projects

 Vancouver, BC - Prospero Silver Corp (TSXV:PSL) ("the Company") is issuing the following news release as a result of a review by the British Columbia Securities Commission, to clarify its technical disclosure and, additionally, to clarify certain potentially misleading comments by news letter writers relating from its Baborigame and Cordero projects.

San Luis del Cordero Project - Durango, Mexico

The Company's technical report on SEDAR contains a historical inferred resource of 81,000 tonnes grading 460 g/t silver, 1.2% Cu, 2.5% Zn. As indicated in the report, additional work is required to confirm the estimate. The Company is not treating it as a current resource estimate, and it should not be relied on. The Company retracts a larger resource estimate indicated by drill holes SL-00-1, SL-00-3 and HCSR-1 that it previously illustrated and discussed on its website. More work is required before making a current resource estimate. However, SL-00-1, SL-00-3, and HCSR-1 show Sta. Rosa style mineralization extends at least 200 meters below the present surface with grades that range from 207 g/t to 607 g/t Ag, 1.04% to 2.98% Cu, and 0.2% to 2.9% Zn.

The Company's also retracts prior website disclosure of large tonnages and grades of potential exploration targets for vein and skarn mineralization at Cordero. The currently available information is not adequate to estimate ranges of tonnes and grades for a potential exploration target as required by NI 43-101.

Baborigame Project in Chihuahua, Mexico

The Company's Baborigame technical report, dated February 19, 2010, does not include any historical or current resource statement, although it illustrates polygons at the Los Angeles vein. The Company's previous website disclosed these polygons as a historical estimate of 76,000 tons with an average grade of 13.3 g/t Au and 65 g/t Ag. The source of the estimate is an old longitudinal section showing samples with gold and silver assays. The Company provisionally retracts the above estimate, pending filing of an amended Baborigame report. At this time, it appears the source, date, grade, and other relevant information may not be verifiable and the underground workings are presently inaccessible.

Campana Project in Durango, Mexico

The Company's previous website disclosed a large quantity expressed as dimensions (a volume quantity) and disclosed contained tonnes without giving an associated grade. The Company retracts the quantity, as it does not have a basis to estimate ranges of tonnes and grade for a potential exploration target. However, The dimensions of the West Zone are in the order of 400 meters long (N-S), and average 75 meters wide, indicating disseminated precious metals occur within a relatively large volume of mineralized host rocks. When the necessary work to define ranges of tons and grade is complete, the Company will restate the potential of this exploration target in accordance with the requirements of NI 43-101.

Promotional Descriptions

Two reports about the Company published by independent newsletter writers, links to which were included on the Company's website, contained potentially misleading comments relating to the Company's Baborigame and Cordero reports. The Company did not commission or pay any remuneration for the preparation of these newsletters. The news letters misquoted tonnage and grade from the Company's technical reports and failed to include the cautionary language included in the technical reports. A report by Midas Letter included projected payback period based on an assumed mill rate. Such economic projections are premature and should be disregarded, and the reports have been removed from the Company's website.

The Company wishes to emphasize that all of its projects are early stage exploration projects and none have a current resource estimate.
  • The Cordero project was the Company's listing project and a 1,700 m diamond drill program was completed earlier this year.
  • The results were reported in two news releases dated April 1, 2010 and May 18, 2010.
The Baborigame project is currently being drilled by the Company and results will be reported in a subsequent news release when they are available.

Tawn Albinson, MsC, the President of the Company, is a Qualified Person, as defined in NI 43-101, and is responsible for the technical content of this press release and quality assurance of the exploration data and analytical results.

Cautionary Statement:

This news release contains forward-looking statements within the meaning of the Canadian provincial securities laws that are not historical facts. Forward-looking statements involve risks, uncertainties and other factors that could cause actual results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking statements, including statements regarding future exploration plans. Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to, variations in the nature, quality and quantity of any mineral deposits that may be located, the Company's inability to obtain any necessary permits, consents or authorizations required for its planned activities, and the Company's inability to raise the necessary capital or to be fully able to implement its business strategies. The reader is referred to the Company's public disclosure record which is available on SEDAR (www.sedar.com), including the risk factors discussed in Prospero's November 27, 2009 prospectus. Although Prospero believes that the assumptions and factors used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Except as required by securities laws and the policies of the TSX Venture Exchange, Prospero disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact:

Warwick Smith
Director
1 (604) 484-4954
 
 

You can view the Next News Releases item: Wed Aug 4, 2010, Prospero Acquires Rights to Claims and Prepares to Drill the El Dorado Project, Nayarit State, Mexico

You can view the Previous News Releases item: Tue Jul 13, 2010, Prospero Silver Claims A New Silver-Gold Target (The "Bermudez" Project) In Central-Western Chihuahua

You can return to the main News Releases page, or press the Back button on your browser.