Wednesday, May 2, 2012

Rio Silver signs community agreement for its Niñobamba project in Peru

Canadian junior Rio Silver Inc. (TSX.V: RYO) announced it has signed a community agreement to begin the initial exploration program at its flagship Niñobamba silver project, located about 330 kilometres southeast of Lima, in the Department of Ayacucho, Peru.

The Niñobamba silver project was discovered by AngloGold Exploracion Peru S.A.C. in 2001, when silver was trading in the US $5 per ounce range. Niñobamba is a high sulphidation, epithermal system hosted within a Tertiary volcaniclastic unit with silver mineralization demonstrating the potential for a bulk tonnage, disseminated silver deposit.

Niñobamba is one of several silver and gold exploration projects in Peru that the Company owns through its wholly owned subsidiary, Minera Rio Plata S.A.C (“Rio Plata”). The Niñobamba silver project is 100% owned by Rio Plata with no royalties or exploration expenditure commitments, in an historic, mining friendly jurisdiction. Consultation with the local community stakeholders resulted in an agreement which will see community members working in all phases of the exploration program as the project advances.

The company said in a statement it looked forward to working with the local community members and that appreciated their support in working through the Community Consultation process to the benefit of all stakeholders.

Niñobamba Silver Project

Originally explored by AngloGold Exploracion Peru S.A.C. (“Anglo”) in 2001, Anglo focused on an area of intense hydrothermal surface alteration and drilled five widely spaced core holes totalling 861metres. Anglo’s drilling highlights included DDH-2 which reported assay results of 87 gpt silver over a drilled interval of 130 metres starting from a depth of 9 metres and DDH-4 reporting 54 gpt silver over a drilled interval of 96 metres starting from 23 metres. Results of this limited exploration program outlined two distinct zones of silver mineralization reported to be open along strike and at depth. The initial work program will consist of road building, trenching and prospecting in advance of the proposed 2012 drill program.