VANCOUVER, Oct. 15, 2015 /CNW/ – Wealth Minerals Ltd. (the “Company” or “Wealth”) – (TSXV: WML, Frankfurt: EJZ, SSE: WMLCL) is pleased to report it has successfully renegotiated its option to acquire the Valsequillo Silver project (“Valsequillo” or the “Property”) located in southern Chihuahua state, Mexico (Figure 1). The Property is located approximately 40 kilometres southeast of the city of Hidalgo Del Parral within the pre-eminent Altiplano Polymetallic Belt of north-central Mexico. Initial reconnaissance work carried out in 2012 identified two significant north-northwest trending structural corridors outlined by extensive artisanal workings that follow en-echelon and segmented precious and base-metal bearing quartz-sulphide (pyrite, galena, sphalerite and chalcopyrite) veins within a broad hornfels gossan. The mineral-alteration systems identified to date remain open for expansion in all directions (Figure 2).
Analysis by the Company indicates that the large, 2,840 hectare Property covers the uppermost portion of a Tertiary system with potential for high grade and/or bulk tonnage, polymetallic-precious metal type mineralization analogous to the setting at the nearby San Francisco del Oro – Santa Barbara District (“SFSB District”) within the Altiplano Polymetallic Belt. The Property is unexplored by modern methods and the Company believes that it can be rapidly and cost-effectively brought to the drill stage once surface access rights have been secured. Access and infrastructure are excellent, topography is moderate, with elevations averaging 1,700 metres, and water is readily available.
Renegotiation of the Valsequillo project option terms solidifies Wealth’s control of an asset which Wealth believes will be a priority exploration play over the coming two years.
SFSB District
The SFSB District, located 40km northwest of Valsequillo, hosts mid-Tertiary polymetallic quartz sulphide vein deposits, which are among the largest Lead-Zinc-Copper-Silver deposits in Mexico. These deposits are the closest analogy for the mineralization observed at surface at Valsequillo. Mineralization was first discovered in 1547 by a group of Spanish explorers who discovered gold ore in the massive Mina del Agua vein, located beside the Rio Santa Barbara. Mining in the area began as early as 1560 and Mina del Agua became the largest gold mine in North America for the next four decades.
At the SFSB District, the veins are hosted by Cretaceous Parral shale and, since 1650, have produced over 440 million ounces of silver (source: Grant & Ruiz, 1988; Econ. Geol. Vol. 83 pp. 1683-1702). Total silver production from the district as a whole is estimated at 550 million ounces. Significant production has come from vein ores (95%) and from several vein-related massive sulphide replacement bodies (5%).
Valsequillo Property Detail
Past artisanal mining activity concentrated on a number of epithermal, zinc-lead-copper-silver veins and/or stock-work and silicified zones. Mineral occurrences are predominantly concentrated within two northwest-trending corridors along the eastern and western margins, respectively, of an elongate color anomaly (gossan) occupying the bulk of the Property (Figure 2). There is no evidence of modern exploration having occurred on the Property.
During the course of the Company’s previous property examination in 2012, a total of 176 rock samples were taken. These samples are best described as characterization samples as they were generally grab samples from outcrops (65%) and float/dump material (35%) at some of the many old workings on the Property. Assay values ranged from below detection to 2.68g/t gold (average 0.15 g/t gold), 629 g/t silver (average 34 g/t silver), 9.47% copper (average 0.28% copper), 16.55% lead (average 0.52% lead), and 6.38% zinc (average 0.5% zinc).
Western Corridor
At the western edge of the gossan (Figure 2), a north-northwest trending corridor up to 200 metres wide can be traced for at least 1,500 metres and is still open in both directions along strike. To the south, the vein system trends onto a third party claim. There are two main veins and associated splays within the corridor. The west vein dips steeply west, and the east vein dips steeply east; both consist predominantly of vuggy, epithermal quartz with varying amounts of calcite and barite as well as scattered clots of base metal sulfides, secondary iron oxides and minor sulfosalts. Base metals predominate, but copper and silver values are significantly higher than those present in the Eastern Corridor. They are most similar to late-stage veins in the SFSB District.
Eastern Corridor
At the eastern edge of the gossan, a series of en-echelon north-south quartz veins/shear zones can be traced for approximately 3,000 metres along strike. This structural zone or corridor is at least 400 metres wide and contains a number of mineralized quartz-calcite-barite-sulphide veins which vary from 1 to 5 metres wide. In unoxidized float and dump material, sulfides approximate 5 to 10% of the vein material and grades average 5% combined lead-zinc, 0.5% copper, 30 g/t silver and 20 to 100 ppb gold.
Locally, there are shoots of higher grade material which returned values up to 10% combined lead-zinc, 1% copper and 100 to 150 g/t silver. Gold grades are higher than in the Western Corridor, with many values in the 0.2 g/t to 1.0 g/t range. These veins are most similar to early-stage veins in the SFSB District.
Renegotiated Valsequillo Option Agreement
Wealth has successfully renegotiated the original 2012 option agreements under which it held the option to acquire a 100% interest in the Valsequillo property from two private Mexican individuals. The renegotiated agreements provide for lower overall option payments spread over a longer period, and are primarily tied to the Company obtaining the necessary surface access. Under the renegotiated agreements, the Company can acquire a 100% interest for a total consideration of US $6.0 million over a 90-month (7.5 years) period. The option payments are now tied to both the signing of the agreements (“Signing Date”) and the date the Company secures the required surface access rights* (“Access Date”). Details of the renegotiated option agreements (collectively) are as follows (all amounts are US Dollars):
1. Initial Payments Related to Signing Date
2. Payments Related to Access Date**
* Wealth will negotiate surface access for a period up to 6 months and if unsuccessful, the matter will be referred to the Director General of Mines to enforce an easement as allowed for within the Mexican Mining Law. The payment of US $50,000, due on the one year anniversary of signing, will be accelerated or delayed in line with the granting of the easement. The timing of the payment due on the two-year anniversary will not be changed.
** Once surface access rights have been granted, the second set of option payments will begin, tied to the Access Date. This provision was negotiated to protect the Company against any delay in securing surface access rights.
Qualified Person
John Drobe, P.Geo., a qualified person as defined by National Instrument 43-101, has reviewed the scientific and technical information that forms the basis for portions of this news release, and has approved the disclosure herein. Mr. Drobe is not independent of the Company, as he is a shareholder.
About Wealth Minerals Ltd.
Wealth’s strategy is to acquire precious metal projects which it believes are undervalued, have low exploration risk, attractive grades and potentially low capital requirements and are located in stable geopolitical jurisdictions. While Wealth is not a development company, management insist that any acquisitions have a reasonable potential for near-term production. The Company’s flagship asset is the Yanamina Gold Project in Peru. The Company intends to negotiate strategic partnerships that it believes will open up potential project development routes.
For further details on the Company readers are referred to the Company’s web site (www.wealthminerals.com) and its Canadian regulatory filings on SEDAR at www.sedar.com.
On Behalf of the Board of Directors of
WEALTH MINERALS LTD.
“Hendrik Van Alphen“
Hendrik Van Alphen, President & Chief Executive Officer
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 press release, which has been prepared by management.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements and forward-looking information (collectively, “forward-looking statements”) within the meaning of applicable Canadian and US securities legislation. All statements, other than statements of historical fact, included herein including, without limitation, statements regarding the anticipated content, commencement, timing and cost of exploration programs, anticipated exploration program results, the discovery and delineation of mineral deposits/resources/reserves, the Company’s belief that the Valsequillo property can be rapidly and cost-effectively brought to the drill stage once surface access rights have been secured, the Company’s belief that the deposits in the SFSB District are the closest analogy for the mineralization observed at surface at Valsequillo, and the anticipated business plans and timing of future activities of the Company, are forward-looking statements. 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 typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. The Company cautions investors that any forward-looking statements by the Company are not guarantees of future results or performance, and that actual results may differ materially from those in forward looking statements as a result of various factors, including, but not limited to, the state of the financial markets for the Company’s equity securities, the state of the commodity markets generally, variations in the nature, quality and quantity of any mineral deposits that may be located, variations in the market price of any mineral products the Company may produce or plan to produce, the inability of the Company to obtain any necessary permits, consents or authorizations required, including TSXV acceptance, for its activities, the inability of the Company to produce minerals from its properties successfully or profitably, to continue its projected growth, to raise the necessary capital or to be fully able to implement its business strategies, and other risks and uncertainties disclosed in the Company’s latest interim Management Discussion and Analysis and filed with certain securities commissions in Canada. All of the Company’s Canadian public disclosure filings may be accessed via www.sedar.com and readers are urged to review these materials, including the technical reports filed with respect to the Company’s mineral properties.
Caution Regarding Adjacent or Similar Mineral Properties
This news release contains information with respect to adjacent or similar mineral properties in respect of which the Company has no interest or rights to explore or mine. Readers are cautioned that the Company has no interest in or right to acquire any interest in any such properties, and that mineral deposits, and the results of any mining thereof, on adjacent or similar properties are not indicative of mineral deposits on the Company’s properties or any potential exploitation thereof.
SOURCE Wealth Minerals Limited
Image with caption: “Figure 1. Valsequillo Location Map (CNW Group/Wealth Minerals Limited)”. Image available at: http://photos.newswire.ca/images/download/20151015_C5761_PHOTO_EN_521514.jpg