Silver Sands Resources Corp. [SAND-CSE; SSRSF-OTCQB] said Thursday May 21 that it is planning to launch a Phase 111 exploration program at its Virginia Silver Project in Santa Cruz Province of the Patagonia region of Argentina, following the discovery of a new high-grade silver zone.
The high-grade zone at Ely Central was discovered during a Phase 11 exploration program that was completed in the first quarter of 2021. The program consisted of 20 diamond drill holes covering 3,104 metres, and bringing the total metres completed during the field season to 5,935 metres.
The company recently said drilling at Ely Central identified an emerging 200-metre open ended strike length with intersections that included 9.98 metres of 560 g/t siler, including 2.87 metres at 1,578 g/t silver.
“Phase 11 drilling has confirmed our hypothesis that drilling known veins along strike will result in an expansion of current resources and define the Virginia Project as a significant silver project,” the company said in a press release on May 17, 2021. “As a result of the spectacular assays at Ely Central (including hole EC-DDH-001 which intersected 10.8 metres at 625 g/t silver, including 5.7 metres at 1,110 g/t silver) we can now see the potential for the Ely zones to extend over 1.3 kilometres along strike length,” said Silver Sands CEO Keith Anderson.
Through initial discovery in 2009 to four drill programs between 2010 and 2012, Mirasol Resources Ltd. [MRZ-TSXV] was able to define an initial indicated mineral resource of 11.9 million ounces of silver at 310 g/t silver and a further inferred resource of 3.1 million ounces of silver at 207 g/t silver within seven outcropping bodies.
Several additional vein structures within the property package remain highly prospective, as Mirasol concentrated the bulk of its exploration effort on the resource area.
Several of these structures have highlight silver values in excess of 1,000 g/t silver and have a high probability of hosting additional silver resources, the company said. It said those vein structures will be the primary focus of the Silver Sands 2020/2021 exploration efforts.
Silver Sands is earning a 100% interest in Virginia by issuing a number of shares that will leave Mirasol with a 19.9% stake in Silver Sands, which has pledged to spend US$6 million in exploration over three years. Mirasol will retain a 3.0% net smelter return royalty on the project. Silver Sands holds an option to purchase one-third of the royalty for US$2 million.
On Thursday, Silver Sands said it has issued 2.8 million shares to Mirasol representing 5.0% of the issued and outstanding shares of Silver Sands. Mirasol now holds 6.5 million shares of Silver Sands, representing an 11.1% stake in the company.
On Thursday, Silver Sands shares eased 3.9% or $0.01 to 24.5 cents on volume of 150,000. The shares are trading in a 52-week range of 49 cents and 14.5 cents.