PROSPERO SILVER CORP. : http://www.prosperosilver.com/ : QwikReport

News Releases

#January 25, 2019
Prospero And Fortuna Sign Option Agreement For Pachuca SE Project, Hidalgo, Mexico

 January 25, 2019 -- Vancouver, B.C. - Prospero Silver Corp (PSL.V; the "Company" or "Prospero") is pleased to announce that the the option agreement announced on December 10, 2018 (the "Option Agreement") between Prospero and Fortuna Silver Mines Inc. ("Fortuna") has been signed by both parties. The Option Agreement is subject to the acceptance of the TSX Venture Exchange.

On December 10, 2018 Prospero announced that Fortuna Silver Mines Inc. ("Fortuna") exercised its right to be granted an option to acquire up to a 70-per-cent interest in the Pachuca Southeast project located close to the historic mining city of Pachuca in Hidalgo state, Mexico, by spending a total of $8-million (U.S.) in qualifying expenditures and completing a preliminary economic assessment, with a minimum spend of $1-million in the first year.

On January 21, 2019 Prospero announced that a drill rig had arrived on site and drilling had begun. A six hole, 4,200m program is underway test a number of potential vein targets.

Pursuant to Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions ("MI 61-101"), which is incorporated by reference into the policies of the TSX Venture Exchange under Policy 5.9, the Option Agreement constitutes a "related party transaction" as a result of Fortuna presently holding in excess of 26% Prospero's outstanding common shares. Prospero is relying on the formal valuation exemption in Section 5.5(a) of MI 61-101 and upon the minority approval exemption in Section 5.7(a) of MI 61-101. These exemptions are available as, at the time the subject transaction was agreed to, neither the fair market value of the subject matter of, nor the fair market value consideration for the transaction, insofar as it involves interested parties, exceeded 25% of Prospero's market capitalization.

About Pachuca SE

The 6,669-hectare Pachuca Southeast land package is 24 kilometres southeast of the city of Pachuca, Hidalgo, along strike from the historic Pachuca-Real del Monte epithermal vein camp, one of the world's largest epithermal precious metal deposits. The local geology at Pachuca Southeast is typical of the high-level epithermal environment seen over the Pachuca-Real del Monte mines. Prospero's land package covers at least six to seven kilometres of linear, structurally controlled argillic alteration caps at surface, which Prospero's team considers are the surface expression of blind, low-sulphidation, epithermal-style veining. Infrastructure is excellent, with nearby major power lines and a major freeway.

Epithermal-style argillic alteration is associated with anomalous Au, Ag and Zn geochemistry, exposed in an erosional window into an andesitic and felsic volcanic pile. The anomalous geochemistry and clay alteration are essentially identical to that seen in the Vizcaina structure above the Pachuca Mine. Prospero's technical team have mapped hydrothermal alteration and geochemical anomalies associated with structures which indicate the alteration could host a preserved Pachuca-type epithermal deposit at depth. The first hole of Phase 2 will target Varal West, a series of silicified rhyolite reef structures with alunite alteration. Varal West is located approximately 1 km west and along strike of the veins intersected in PSE-18-02.

Qualified Person

Tawn Albinson, M.Sc., President of the Company, is a Qualified Person, as defined in NI 43-101, and is responsible for the technical content of this news release. Mr. Albinson is a Member of the American Institute of Professional Geologists and a Certified Professional Geologist (CPG) No. 11368.

About Fortuna Silver Mines Inc.

Fortuna is a growth-oriented, precious metals producer focused on mining opportunities in Latin America. The company's primary assets are the Caylloma silver mine in southern Peru, the San Jose silver-gold mine in Mexico and the fully--permitted Lindero gold project in Argentina.

About Prospero Silver Corp.

Prospero is a Mexico-focused project generator listed on the TSX.V under the symbol PSL.V. Prospero's aim is to discover world-class precious metal projects in the major mineral belts of Mexico. The Company applies a unique blend of practical exploration experience, cutting-edge mineral deposit science, and an extensive knowledge of Mexico's geology to find new gold and silver systems. Our exploration programs are run by a small but highly-focused geological team based in Mexico.

For further information please contact:

Ralph Rushton
Exec VP Business Development
Tel: 604 307 0055

William Murray
Chairman
Tel: 604 288 2553

Forward-Looking Statement Cautions:

This press release contains certain "forward-looking statements" within the meaning of Canadian securities legislation, relating to, among other things, the contemplated TSX Venture Exchange acceptance of the Option Agreement, and the recently commenced 4,200m drilling program no the Pachuca SE property. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are statements that are not historical facts; they are generally, but not always, identified by the words "expects," "plans," "anticipates," "believes," "intends," "estimates," "projects," "aims," "potential," "goal," "objective," "prospective," and similar expressions, or that events or conditions "will," "would," "may," "can," "could" or "should" occur, or are those statements, which, by their nature, refer to future events. The Company cautions that Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made and they involve a number of risks and uncertainties. Consequently, there can be no assurances that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Except to the extent required by applicable securities laws and the policies of the TSX Venture Exchange, the Company undertakes no obligation to update these forward-looking statements if management's beliefs, estimates or opinions, or other factors, should change. Factors that could cause future results to differ materially from those anticipated in these forward-looking statements include, possible, accidents and other risks associated with mineral exploration operations, the risk that the Company will encounter unanticipated geological factors, the possibility that the Company may not be able to secure permitting and other governmental clearances necessary to carry out the Company's exploration plans, the risk that the Company will not be able to raise the additional funds in the future to continue to carry out its business plans, and the risk of political uncertainties and regulatory or legal changes that might interfere with the Company's business and prospects. The reader is urged to refer to the Company's reports, publicly available through the Canadian Securities Administrators' System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com for a more complete discussion of such risk factors and their potential effects.

This news release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of any of securities of the Company in any jurisdiction in which such offer, solicitation or sale would be unlawful, including any of the securities in the United States of America. The Company's securities have not been and will not be registered under the United States Securities Act of 1933 (the "1933 Act") or any state securities laws and may not be offered or sold within the United States or to, or for account or benefit of, U.S. Persons (as defined in Regulation S under the 1933 Act) unless registered under the 1933 Act and applicable state securities laws, or an exemption from such registration requirements is available.

Neither the 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.
File: http://www.prosperosilver.com/i/pdf/2019-01-25-NR.pdf
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#January 21, 2019
Prospero Begins Second Phase Drilling at Pachuca SE Project, Hidalgo State, Mexico

 THIS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

January 21, 2019 -- Vancouver, B.C. - Prospero Silver Corp (PSL.V; the "Company" or "Prospero") is pleased to announce that Phase 2 drilling has started at the Pachuca SE project, close to the historic mining city of Pachuca in Hidalgo State, Mexico.

On December 10, 2018 Prospero announced that Fortuna Silver Mines Inc. ("Fortuna") exercised its right to be granted an option to acquire up to a 70-per-cent interest in the Pachuca Southeast project located close to the historic mining city of Pachuca in Hidalgo state, Mexico, by spending a total of $8-million (U.S.) in qualifying expenditures and completing a preliminary economic assessment, with a minimum spend of $1-million in the first year.

Prospero has mobilized a drill rig which arrived at Pachuca SE in early January. A six hole, 4,200m program started on January 14 to test a number of potential vein targets. In Q1 2018, Prospero, with financing provided by Fortuna, completed a 1,800-metre drill program (three holes) testing three distinct targets with deep, angled holes. Drill collar maps and draft sections for the Pachuca drill holes are available at Prospero's website. PSE-18-01 and PSE-18-03 each cut the possible tops of new vein systems. PSE-18-02 intersected three argillic caps in the shallow portion of the hole and three mineralized veins at depth. For full results of the drill program, please see the company's press releases dated March 14, 2018, and March 29, 2018.

Tawn Albinson, the President of Prospero commented: "Our 2018 program appears to have successfully cut the upper parts of a series of blind epithermal veins hosting silver and gold mineralization. This is particularly exciting given how close the project is to the historic Pachuca-Real Del Monte camp. The current Phase 2 program is designed to follow up on the 2018 hits and to drill test a number of additional altered structures that weren't tested in Phase 1. I look forward to reporting on the drilling during Q1."

The 6,669-hectare Pachuca Southeast land package is 24 kilometres southeast of the city of Pachuca, Hidalgo, along strike from the historic Pachuca-Real del Monte epithermal vein camp, one of the world's largest epithermal precious metal deposits. The local geology at Pachuca Southeast is typical of the high-level epithermal environment seen over the Pachuca-Real del Monte mines. Prospero's land package covers at least six to seven kilometres of linear, structurally controlled argillic alteration caps at surface, which Prospero's team considers are the surface expression of blind, low-sulphidation, epithermal-style veining. Infrastructure is excellent, with nearby major power lines and a major freeway.

Epithermal-style argillic alteration is associated with anomalous Au, Ag and Zn geochemistry, exposed in an erosional window into an andesitic and felsic volcanic pile. The anomalous geochemistry and clay alteration are essentially identical to that seen in the Vizcaina structure above the Pachuca Mine. Prospero's technical team have mapped hydrothermal alteration and geochemical anomalies associated with structures which indicate the alteration could host a preserved Pachuca-type epithermal deposit at depth. The first hole of Phase 2 will target Varal West, a series of silicified rhyolite reef structures with alunite alteration. Varal West is located approximately 1 km west and along strike of the veins intersected in PSE-18-02.

Qualified Person

Tawn Albinson, M.Sc., President of the Company, is a Qualified Person, as defined in NI 43-101, and is responsible for the technical content of this news release. Mr. Albinson is a Member of the American Institute of Professional Geologists and a Certified Professional Geologist (CPG) No. 11368.

About Fortuna Silver Mines Inc.

Fortuna is a growth-oriented, precious metals producer focused on mining opportunities in Latin America. The company's primary assets are the Caylloma silver mine in southern Peru, the San Jose silver-gold mine in Mexico and the fully--permitted Lindero gold project in Argentina.

About Prospero Silver Corp.

Prospero is a Mexico-focused project generator listed on the TSX.V under the symbol PSL.V. Prospero's aim is to discover world-class precious metal projects in the major mineral belts of Mexico. The Company applies a unique blend of practical exploration experience, cutting-edge mineral deposit science, and an extensive knowledge of Mexico's geology to find new gold and silver systems. Our exploration programs are run by a small but highly-focused geological team based in Mexico.

For further information please contact:

Ralph Rushton
Exec VP Business Development
Tel: 604 307 0055

William Murray
Chairman
Tel: 604 288 2553

Forward-Looking Statement Cautions:

This press release contains certain "forward-looking statements" within the meaning of Canadian securities legislation, relating to, among other things, the Company's proposed use of the financing proceeds. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are statements that are not historical facts; they are generally, but not always, identified by the words "expects," "plans," "anticipates," "believes," "intends," "estimates," "projects," "aims," "potential," "goal," "objective," "prospective," and similar expressions, or that events or conditions "will," "would," "may," "can," "could" or "should" occur, or are those statements, which, by their nature, refer to future events. The Company cautions that Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made and they involve a number of risks and uncertainties. Consequently, there can be no assurances that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Except to the extent required by applicable securities laws and the policies of the TSX Venture Exchange, the Company undertakes no obligation to update these forward-looking statements if management's beliefs, estimates or opinions, or other factors, should change. Factors that could cause future results to differ materially from those anticipated in these forward-looking statements include, possible, accidents and other risks associated with mineral exploration operations, the risk that the Company will encounter unanticipated geological factors, the possibility that the Company may not be able to secure permitting and other governmental clearances necessary to carry out the Company's exploration plans, the risk that the Company will not be able to raise the additional funds in the future to continue to carry out its business plans, and the risk of political uncertainties and regulatory or legal changes that might interfere with the Company's business and prospects. The reader is urged to refer to the Company's reports, publicly available through the Canadian Securities Administrators' System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com for a more complete discussion of such risk factors and their potential effects.

This news release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of any of securities of the Company in any jurisdiction in which such offer, solicitation or sale would be unlawful, including any of the securities in the United States of America. The Company's securities have not been and will not be registered under the United States Securities Act of 1933 (the "1933 Act") or any state securities laws and may not be offered or sold within the United States or to, or for account or benefit of, U.S. Persons (as defined in Regulation S under the 1933 Act) unless registered under the 1933 Act and applicable state securities laws, or an exemption from such registration requirements is available.

Neither the 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.

File: http://www.prosperosilver.com/i/pdf/2019-01-21_NR_PSL_P8u52fk3.pdf
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#December 10, 2018
Fortuna Silver Mines Exercises Its Right to Enter into an Option Agreement on the Pachuca Southeast project, Hidalgo, Mexico

 
THIS RELEASE IS NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

December 10, 2018 - Vancouver, B.C. - Prospero Silver Corp. (TSXV: PSL) ("Prospero" or "the Company") is pleased to announce that further to the strategic cooperation agreement between Prospero and Fortuna Silver Mines ("Fortuna" or "FVI") dated May 10, 2017 as subsequently amended (see Prospero press releases dated May 9, 2018), Fortuna has exercised its right to be granted an option to acquire up to a 70% interest in the Pachuca SE Project, located close to the historic mining city of Pachuca in Hidalgo State, Mexico by spending a total of US$8.0 million in qualifying expenditures and completing a preliminary economic assessment, with a minimum spend of $1 million in the first year. The parties are proceeding to prepare a definitive option and joint venture agreement substantially on the terms set out in the Company's press release dated April 17, 2017.

Tawn Albinson, the President of Prospero said: "We're happy that Fortuna has exercised its right to be granted an interest in Pachuca SE. The Prospero team is excited to be returning for a second round of drilling on the project. We hope to recommence work in January 2019, subject to completion of a definitive option and joint venture agreement with Fortuna. There are several distinct targets that we hope to test and planning will begin shortly with Fortuna's technical team."

The 6,669 hectare Pachuca SE land package is 24km SE of the city of Pachuca, Hidalgo along strike from the historic Pachuca-Real del Monte epithermal vein camp, one of the world's largest epithermal precious metal deposits. The local geology at Pachuca SE is typical of the high-level epithermal environment seen over the Pachuca-Real del Monte mines. Prospero's land package covers at least 6-7km of linear, structurally-controlled argillic alteration caps at surface, which Prospero's team considers are the surface expression of blind, low-sulfidation epithermal-style veining. Infrastructure is excellent with nearby major power lines and a major freeway.

In Q1 2018, Prospero, with funding provided by Fortuna, completed a 1,800m drill program (3 holes) testing 3 distinct targets with deep, angled holes. Drill collar maps and draft sections for the Pachuca drill holes are available on Prospero's website at this link. Holes 1 and 3 each cut the possible tops of new vein systems. Hole 2 intersected 3 argillic caps in the shallow portion of the hole, and 3 mineralized veins at depth. For full results of the drill program please see the Company's press releases dated March 14, 2018 and March 29, 2018. A summary of the results are set out below:

Hole PSE-18-01

Hole 1, was drilled to a total downhole depth of 454m, north to south across a fault structure in a small clay-mining pit. Surface geochemistry of the fault zone and quartz veinlets is negligible in the pit, where all selected samples ran less than 1 ppm Ag. However silver grades increase significantly in drill core from within the argillic alteration cap at depths of less than 200 vertical meters from surface suggest proximity to the top of potentially mineralized veins at depth.

The hole cut argillic alteration from 141.5m to 164.5m associated with fault gouge and breccia zones, with moderate to strong argillic alteration and quartz veinlets, and disseminated pyrite. This zone returned 1.35m @ 227Ag between 147.4m and 148.8m. The fault zone projects down from a fault noted in the clay pit. A zone between 161.5m to 162.3m (0.8m) returned 16.9ppm Ag, and from 206m a 1.05m interval runs 23.8ppm Ag. A second argillic alteration zone was intersected from 220.5m to 239.7m, also associated with gouge fault zones, moderate to weak patches of silicification, and disseminated pyrite. This second zone projects vertically to the fault zone at surface which outcrops in the clay pit.

Hole PSE-18-02

PSE-18-02 was drilled to test the El Varal target. It was collared at a dip of -51º, azimuth 175º. The hole cut strongly altered felsic to intermediate volcanics for most of its 933m length, and cut 3 zones of precious metal mineralization, which appear to correlate with the down dip continuation of structures seen at surface:

From (m) To (m) Downhole Interval (m)* Au ppm Ag ppm
657.2 657.5 0.3 1.04 193
660.0 671.2 12.2 0.39 33
695.2 695.95 0.75 5.89 72

*True thickness estimated at approximately 80% of the downhole interval

The most significant intercept is from approximately 657m to 671m downhole. Two veins were cut. The first graded 1ppm Au and 193ppm Ag over 30cm, from 657.2m, and contains visible argentite grains in white epithermal quartz. The sulfide was tentatively identified using optical microscopy.

The second vein zone is over 12m long down hole from 660m, but is probably closer to 8-10m true thickness. Silver assays for this interval ranged from 6.4ppm to 90.6ppm over 1.2m, and gold ranged from 0.08ppm to 0.76ppm over 85cm. The grades are encouraging and demonstrate the presence of a precious metal-bearing multi-stage banded vein system. The highest gold grades were encountered in a 75cm interval of silicified and brecciated dacite dyke with crystalline quartz and 1% pyrite, from 695.2m downhole which returned 6.4 ppm Au and 72ppm Ag.

Hole PSE-18-03

PSE-18-03 was drilled with azimuth 180 º across the northern Aguayutla structure under small clay pits at surface. Three pyritised argillic alteration zones were cut, 2 of which carry anomalous values including 0.3m @ 18ppm Ag from 201m downhole, and 0.2m at 1.7ppm Au and 870ppm Ag from 408m downhole.

Bermudez Drilling

A 1,573m drill program (3 holes) was completed at Bermudez this Fall. Hole 2 intercepted 3 robust vein systems with low-grade (<0.5ppm) gold mineralization between approximately 200 to 500 vertical meters from surface. No further work is currently planned at Bermudez.

Qualified Person

Tawn Albinson, M.Sc., President & CEO of the Company, is a Qualified Person, as defined in NI 43-101, and is responsible for the technical content of this news release. Mr. Albinson is a Member of the American Institute of Professional Geologists and a Certified Professional Geologist (CPG) No. 11368.

About Fortuna Silver Mines Inc.

Fortuna is a growth-oriented, precious metals producer focused on mining opportunities in Latin America. The company's primary assets are the Caylloma silver mine in southern Peru, the San Jose silver-gold mine in Mexico and the Lindero gold project in Argentina.

About Prospero Silver Corp.

Prospero is a Mexico-focused project generator listed on the TSX-V under the symbol PSL. Prospero's aim is to discover world-class precious metal projects in the major mineral belts of Mexico. The Company applies a unique blend of practical exploration experience, cutting-edge mineral deposit science, and an extensive knowledge of Mexico's geology to find new gold and silver systems. Its exploration programs are run by a small but highly-focused geological team based in Mexico.

For further information please contact:

Ralph Rushton
Exec VP Business Development
Tel: 604 307 0055 William Murray
Chairman
Tel: 604 288 2553

Forward-Looking Statement Cautions:

This press release contains certain "forward-looking statements" within the meaning of Canadian securities legislation, relating to, among other things, plans to fund and complete a 6,000 metre drill program on Company projects in 2018, amendments to a 2017 Strategic Cooperation Agreement with Fortuna, including the repricing and subsequent exercise of outstanding share purchase warrants held by Fortuna, the completion of a $1.0M private placement financing first announced on April 16, 2018, and plans to undertake a subsequent financing by the end of September 2018. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are statements that are not historical facts; they are generally, but not always, identified by the words "expects," "plans," "anticipates," "believes," "intends," "estimates," "projects," "aims," "potential," "goal," "objective," "prospective," and similar expressions, or that events or conditions "will," "would," "may," "can," "could" or "should" occur, or are those statements, which, by their nature, refer to future events. The Company cautions that Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made and they involve a number of risks and uncertainties. Consequently, there can be no assurances that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Except to the extent required by applicable securities laws and the policies of the TSX Venture Exchange, the Company undertakes no obligation to update these forward-looking statements if management's beliefs, estimates or opinions, or other factors, should change. Factors that could cause future results to differ materially from those anticipated in these forward-looking statements include, possible, accidents and other risks associated with mineral exploration operations, the risk that the Company will encounter unanticipated geological factors, the possibility that the Company may not be able to secure permitting and other governmental clearances necessary to carry out the Company's exploration plans, the risk that the Company will not be able to raise the additional funds in the future to continue to complete its current or future financing plans and, in turn, to carry out its business plans, the refusal of the TSX Venture Exchange to permit the Company to amend its agreements with Fortuna as presently proposed, and the risk of political uncertainties and regulatory or legal changes that might interfere with the Company's business and prospects. The reader is urged to refer to the Company's disclosure record, publicly available through the Canadian Securities Administrators' System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com for a more complete discussion of such risk factors and their potential effects.

This news release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of any of securities of the Company in any jurisdiction in which such offer, solicitation or sale would be unlawful, including any of the securities in the United States of America. The Company's securities have not been and will not be registered under the United States Securities Act of 1933 (the "1933 Act") or any state securities laws and may not be offered or sold within the United States or to, or for account or benefit of, U.S. Persons (as defined in Regulation S under the 1933 Act) unless registered under the 1933 Act and applicable state securities laws, or an exemption from such registration requirements is available.

Neither the 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.

View News Release in PDF Format:
File: http://www.prosperosilver.com/i/pdf/2018-12-10-NR.pdf
 139 KB, approx. 27 seconds at 56.6Kbps
 
#September 17, 2018
Prospero Announces Completion of CAD $356,000 Private Placement Financing with Fortuna Silver Mines

 
THIS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Vancouver, British Columbia - (Newsfile - September 17, 2018) - Prospero Silver Corp. (TSXV: PSL) ("Prospero" or "the Company") has completed its recently announced private placement financing with Fortuna Silver Mines Inc. ("Fortuna"), raising aggregate gross proceeds of CAD$356,000.

The offering consisted of the sale of 4,746,667 common shares of the Company for proceeds of CAD$356,000. All securities issued in the offering are subject to a hold period expiring on January 18, 2019. The offering is subject to the final acceptance of the TSX Venture Exchange.

Prospero will allocate the proceeds of the private placement to drill testing the company's Bermudez project in Chihuahua State, Mexico. Drilling began at Bermudez in late August and Prospero plans to complete a three-hole (approximately 1,500 metres) diamond drill program at Bermudez.

Fortuna's participation in this private placement is considered to be a "related party transaction", pursuant to Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"), which is incorporated by reference into the policies of the TSX Venture Exchange under Policy 5.9. The Company has determined that exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101 were available for the related party transaction, pursuant to Section 5.5(a) and Section 5.7(a) of MI 61-101, on the basis that the fair market value consideration of the transaction involving related parties was not more than 25% of the Company's market capitalization.

About Fortuna Silver Mines Inc.

Fortuna is a growth-oriented precious metal producer focused on mining opportunities in Latin America. Fortuna's primary assets are the Caylloma silver mine in southern Peru, the San Jose silver-gold mine in Mexico and the Lindero gold project in Argentina.

About Prospero Silver Corp.

Prospero is a Mexico-focused project generator listed on the TSX.V under the symbol PSL.V. Prospero's aim is to discover world-class precious metal projects in the major mineral belts of Mexico. The Company applies a unique blend of practical exploration experience, cutting-edge mineral deposit science, and an extensive knowledge of Mexico's geology to find new gold and silver systems. Our exploration programs are run by a small but highly-focused geological team based in Mexico.

For further information please contact:

Ralph Rushton
Exec VP Business Development
Tel: 604 307 0055

William Murray
Chairman
Tel: 604 288 2553

Forward-Looking Statement Cautions:

This press release contains certain "forward-looking statements" within the meaning of Canadian securities legislation, relating to, among other things, the Company's use of the financing proceeds. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are statements that are not historical facts; they are generally, but not always, identified by the words "expects," "plans," "anticipates," "believes," "intends," "estimates," "projects," "aims," "potential," "goal," "objective," "prospective," and similar expressions, or that events or conditions "will," "would," "may," "can," "could" or "should" occur, or are those statements, which, by their nature, refer to future events. The Company cautions that Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made and they involve a number of risks and uncertainties. Consequently, there can be no assurances that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Except to the extent required by applicable securities laws and the policies of the TSX Venture Exchange, the Company undertakes no obligation to update these forward-looking statements if management's beliefs, estimates or opinions, or other factors, should change. Factors that could cause future results to differ materially from those anticipated in these forward-looking statements include, possible, accidents and other risks associated with mineral exploration operations, the risk that the Company will encounter unanticipated geological factors, the possibility that the Company may not be able to secure permitting and other governmental clearances necessary to carry out the Company's exploration plans, the risk that the Company will not be able to raise the additional funds in the future to continue to carry out its business plans, and the risk of political uncertainties and regulatory or legal changes that might interfere with the Company's business and prospects. The reader is urged to refer to the Company's reports, publicly available through the Canadian Securities Administrators' System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com for a more complete discussion of such risk factors and their potential effects.

This news release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of any of securities of the Company in any jurisdiction in which such offer, solicitation or sale would be unlawful, including any of the securities in the United States of America. The Company's securities have not been and will not be registered under the United States Securities Act of 1933 (the "1933 Act") or any state securities laws and may not be offered or sold within the United States or to, or for account or benefit of, U.S. Persons (as defined in Regulation S under the 1933 Act) unless registered under the 1933 Act and applicable state securities laws, or an exemption from such registration requirements is available.

Neither the 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.

View News Release in PDF Format:
File: http://www.prosperosilver.com/i/pdf/2018-09-17-nr-prospero.pdf
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#September 08, 2018
Prospero Completes Buenavista Drilling in Mexico and Grants Stock Options

 
THIS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES


September 8, 2018. Prospero Silver Corp. (TSX.V: PSL; "The Company" or "Prospero") is pleased to provide results for drilling of its Buenavista project in northwest Durango State, Mexico. Eleven holes, totaling 2,811m of core drilling, were completed. The drilling at Buenavista was the fourth project to be drilled under the terms of a second round of strategic investment from Fortuna Silver Mines, Inc. (NYSE:FSM, TSX: FVI) ("Fortuna") made in May 2018, as per the revised agreement and warrant exercise announced on May 7, 2018.

Buenavista is a precious metal-bearing, structurally-controlled epithermal vein system centered on a rhyolite dome complex in in NW Durango, 270km northwest of Durango City. Fresnillo's recently commissioned San Julian Mine lies 20 Km to the northwest. Alteration at surface is high-level argillic suggestive of the presence of an epithermal deposit at depth, possibly hosted in Lower Volcanic Series andesites.

All holes cut anomalous silver mineralization, with a best interval of 1.6m @ 353g/t Ag from 185.6m downhole, within a broader interval of 49m @ 43g/t Ag in hole BVF-18-05.

The Company has finished the current round of drilling at Buenavista and is assessing the most recent drill results together with Fortuna. The rig has been moved to the nearby Bermudez project which is permitted and ready to drill and will be the fifth and final project to be drilled under the terms of a strategic investment by Fortuna. Bermudez is a low sulphidation epithermal system with multiple kilometers of exposed veining at surface. An initial program of 3 holes for a total of 1,500m of core drilling is planned.

A summary of all results from the 2018 drilling at Buenavista is given below with brief geological descriptions for each hole.

From To Width Ag Au Pb Zn
    m ppm ppm ppm ppm
BVF-18-01 final depth 225.1m
36.15 40.00 3.85 10.30 - - -
BVF-18-02 final depth 326.4m
63.80 64.93 1.13 22.90 0.10 - -
144.45 177.12 32.67 17.40 - - -
Including            
176.55 177.12 0.57 815.00 0.19 1,465 288
BVF-18-03 final depth 216.5m
87.20 98.15 10.95 21.00 - - -
Including            
91.20 92.10 0.90 151.00 0.02 - -
BVF-18-04 final depth 241.1m
144.85 161.70 16.85 50.00 - - -
Including            
146.50 147.40 0.90 166.00 0.12 403 439
149.00 149.90 0.90 108.00 0.08 - 140
154.65 155.35 0.70 236.00 0.19 221 298
156.70 159.00 2.30 100.00 0.08 - -
194.30 199.55 5.25 121.00 0.14 1,941 937
Including            
194.30 195.30 1.00 220.00 0.35 8,600 2,770
197.70 198.30 0.60 189.00 0.08 898 619
BVF-18-05 final depth 206m
144.40 198.80 48.95 43.00 0.13 - -
Including            
157.35 158.05 0.70 287.00 0.31 - 479
177.70 179.05 1.35 220.00 0.22 - 134
185.60 187.15 1.55 353.00 0.42 245 418
BVF-18-06 final depth 330.9m
188.80 190.70 3.05 31.00 0.03 - -
BVF-18-07 final depth 127.8m
80.40 84.7 4.30 22.56 0.03 136 432
BVF-18-08 final depth 270.3m
80.40 111.70 27.3 12.00 0.05 395 365
Including            
87.30 92.30 5.00 37.00 0.07 235 467
90.65 92.30 1.65 81.00 0.09 429 406
107.50 111.70 4.20 8.00 0.05 2000 1197
BVF-18-09 final depth 270.25m
105.00 145.35 40.35 16.00 0.04 459 925
Including            
119.00 120.60 1.60 189.00 0.18 308 140
135.85 143.75 7.90 19.00 0.06 1,760 3,833
BVF-18-10 final depth 364.65m
256.00 259.10 3.10 58.00 0.46 245 309
BVF-18-11 final depth 225.2m
131.50 134.40 2.90 41.00 0.07 - -
140.00 145.00 5.00 22.00 0.05 - -


Base metal assays have been rounded to the nearest ppm and only grades >100pm Zn or Pb have been reported. Cross sections for all holes, and a table of drill collar locations, dips and azimuths are available on Prospero's website here: http://www.prosperosilver.com/s/BuenavistaDurangoState.asp and here: http://www.prosperosilver.com/i/pdf/Drill-Collar-Coords-and-Orientations.pdf


Holes BVF-18-01 & 2

These two parallel holes cut an intrusive dome phase with a shallow dipping footwall towards the north (see section on Prospero's website). The deeper portion of the holes intersected rhyodacitic tuff. Hole 18-02 reached an andesitic agglomerate in its lower portion. Silica veining is common within the dome phase and the pyroclastics. Silver geochemistry is weak in the near-surface BVF-18-01 intersection (highs of 12.9 to 15.4 ppm Ag), but increases in hole BVF-18-02, which returned 0.57m of 815 ppm Ag, and cut deeper stratigraphic levels.

Holes BVF-18-03 & 4

These holes explored the Buenavista NE dike and vein which had not been explored in earlier drilling campaigns (see plan view and section on Prospero's website). Hole BVF-18-03 intersected vein material 75 vertical meters below the surface outcrops, at a structural contact. The best interval returned from hole 18-03 was 151ppm Ag over 90cm from 91.2m downghole. BVF-18-04 intersected a new body of the felsite dome phase which does not appear to outcrop. Two vein zones were intersected in hole 18-04; the first within the dome phase where a zone of narrow quartz-sulfide veinlets returned 50 ppm Ag over 16.85m from 144.85m downhole, and another at the footwall contact of the dome from 194.3m to 199.6m which carries 121 ppm Ag and 0.14 ppm Au over a width of 5.3m. As in the case of holes BVF-18-01 and BVF-18-02, this vertical section also shows an increase in silica veining and mineralization with depth.

Holes BVF-18-05 & 6

These holes were drilled to explore the continuation to the west of the Buenavista vein and dike (see plan view on Prospero's website). The holes cut an intrusive dome phase in the hanging wall of the vein which does not outcrop at surface. Hole BVF-18-05 intersected two closely spaced veins which correlate with two outcropping veins. The entire vein zone in hole 18-05 returned 48.95m @ 43 g/t ppm Ag and 0.13 ppm Au, with better grade in the footwall vein which carries 353 ppm Ag and 0.42 ppm Au over 1.55m from 185.6m downhole. Hole BVF-18-06 indicates the footwall of the dome phase flattens slightly, and returned a best intersection of 3.1m @ 31 ppm Ag from 188.8m downhole.

Hole BVF-18-07

Hole BVF-18-07 was drilled under the Camaleon vein, and intersected a felsitic dike hosting quartz veining in the footwall zone of the felsites (see section on Prospero's website). The visually best mineralized vein (with pyrite, sphalerite and suspect gray sulfides) occurs between 81.95m to 82.80m (0.85m width) in an inetrval that returned 4.3m @ 22.6g/t Ag from 80.4m to 84.7m, with a strong silicified fault in the hangingwall.

Hole BVF-18-08

Hole BVF-18-08 was the first hole to explore at depth the Pajaro Stockwork zone at surface. It intersected 46 meters of similar mineralization from 84.40m to 111.70m, 60m below the outcrop with several intervals of low grade Ag-Pb-Zn mineralization, the best interval with 1.65m of 81 ppm Ag.

Hole BVF-18-09

Given the uncertain strike of the Pajaro Stockwork zone, this hole was drilled at right angles to BVF-18-08 to gain a better idea of bearing and dip on the broad mineralized zone. It intersected a broad zone of veining from 105.00m to 145.35m, from 50m to 80m below the present surface, with a best interval of 1.60m with 189 ppm Ag and 0.18 ppm Au. This intersection seems to confirm that in plan view the stockwork zone belongs to the northeast striking vein trend.

Hole BVF-18-10

This hole was drilled 90m south of hole BVF-18-04 and 55m deeper to test laterally the two mineralized intersections of BVF-18-04 that occur both within and in the footwall of the dome phase. BVF-18-10 also intersected the dome phase and indicated the footwall flattens sharply downwards from the line of section of BVF-18-03 and BVF-18-04 where it shows a dip of 60°, to 45° on the line of section of Hole BVF-18-10. The structural flattening appears to be responsible for diminished veining and geochemistry.

Hole BVF-18-11

Hole BVF-18-11 represents a 80m offset of hole BVF-18-05, and 25m deeper to investigate if the mineralization in the former hole persists further to the southwest. Diminished quartz veining and lower grades were encountered in this intersection, indicating a possible limit to the southwest of the Buenavista vein mineralized zone which was previously drilled a continuous 400m to the northeast.

Stock Options

The Company has granted stock options for a total of 1,585,000 common shares of the Company to officers, directors, employees and management of the Company. These stock options are exercisable at CDN $0.075 per stock option and will expire on September 6, 2018, five years from the date of grant. These stock options are governed by the terms and conditions of the Company's stock option plan.

QA/QC

A quality control program is adopted to ensure best practices in the sampling and analysis of drill core. Drill core obtained from the diamond drill program was dominantly HQ-sized core with the rest NQ-sized core. All drill core was photographed and logged prior to sampling. Standard sampling protocol involved the halving of all drill core and sampling over a maximum of 1.5 meter intervals, with one half of the core being placed in a sealed sample bag and dispatched to the analytical laboratory for analysis. Samples were shipped to ALS-Chemex Laboratory preparation facilities in Zacatecas City or Chihuahua City (ISO 9001). Sample pulps were shipped to ALS-Chemex Laboratories in North Vancouver, B.C. for analysis. All samples were assayed by multielemental ME-ICP41; silver assays in excess of 100 g/t were reanalyzed by HF-HNO3-HCLO4 digestion with HCL leach and ICP-AES finish. Of these samples those that return values greater than 1,500 g/t are further analysed by fire assay with a gravimetric finish. Gold values greater than 10 g/t are reanalyzed by ICP21 (Inductively Induced Plasma-Atomic Emission Spectroscopy), which consists of a 30 gram fire assay with an ICP-AES finish. Silver, lead, zinc and copper values in excess of 100 ppm, 1%, 1%, and 1% respectively are repeated with aqua regia digestion and with ICP-AES (Code OG46). Standards, blanks, and duplicates were inserted one each every 22 samples.

Qualified person

Tawn Albinson, MSc, president of the company, is a qualified person, as defined in National Instrument 43-101, and is responsible for the technical content of this news release. Mr. Albinson is a member of the American Institute of Professional Geologists and a certified professional geologist (CPG) No. 11368.

About Fortuna Silver Mines Inc.

Fortuna is a growth-oriented, precious metals producer focused on mining opportunities in Latin America. The company's primary assets are the Caylloma silver mine in southern Peru, the San Jose silver-gold mine in Mexico and the fully-permitted Lindero gold project in Argentina.

About Prospero Silver Corp.

Prospero is a Mexico-focused project generator listed on the TSX.V under the symbol PSL.V. Prospero's aim is to discover world-class precious metal projects in the major mineral belts of Mexico. The Company applies a unique blend of practical exploration experience, cutting-edge mineral deposit science, and an extensive knowledge of Mexico's geology to find new gold and silver systems. Our exploration programs are run by a small but highly-focused geological team based in Mexico.

For further information please contact:

Ralph Rushton
Exec VP Business Development
Tel: 604 307 0055

William Murray
Chairman
Tel: 604 288 2553

Forward-Looking Statement Cautions:

This press release contains certain "forward-looking statements" within the meaning of Canadian securities legislation, relating to, among other things, the Company's drilling update. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are statements that are not historical facts; they are generally, but not always, identified by the words "expects," "plans," "anticipates," "believes," "intends," "estimates," "projects," "aims," "potential," "goal," "objective," "prospective," and similar expressions, or that events or conditions "will," "would," "may," "can," "could" or "should" occur, or are those statements, which, by their nature, refer to future events. The Company cautions that Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made and they involve a number of risks and uncertainties. Consequently, there can be no assurances that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Except to the extent required by applicable securities laws and the policies of the TSX Venture Exchange, the Company undertakes no obligation to update these forward-looking statements if management's beliefs, estimates or opinions, or other factors, should change. Factors that could cause future results to differ materially from those anticipated in these forward-looking statements include, possible, accidents and other risks associated with mineral exploration operations, the risk that the Company will encounter unanticipated geological factors, the possibility that the Company may not be able to secure permitting and other governmental clearances necessary to carry out the Company's exploration plans, the risk that the Company will not be able to raise the additional funds in the future to continue to carry out its business plans, and the risk of political uncertainties and regulatory or legal changes that might interfere with the Company's business and prospects. The reader is urged to refer to the Company's reports, publicly available through the Canadian Securities Administrators' System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com for a more complete discussion of such risk factors and their potential effects.

This news release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of any of securities of the Company in any jurisdiction in which such offer, solicitation or sale would be unlawful, including any of the securities in the United States of America. The Company's securities have not been and will not be registered under the United States Securities Act of 1933 (the "1933 Act") or any state securities laws and may not be offered or sold within the United States or to, or for account or benefit of, U.S. Persons (as defined in Regulation S under the 1933 Act) unless registered under the 1933 Act and applicable state securities laws, or an exemption from such registration requirements is available.

Neither the 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.


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