Vancouver, British Columbia--(Newsfile Corp. - February 1, 2021) - Ridgestone Mining Inc. (TSXV: RMI) (OTCQB: RIGMF) ("Ridgestone Mining") is pleased to announce that, further to the news release dated December 17, 2020, it has executed a property option agreement dated January 27, 2021 with Endeavour Silver Corp. to acquire a 100%-interest in the Guadalupe y Calvo. The GyC project, which is located in the prolific Sierra Madre gold belt, is in Chihuahua State, Mexico, and host to a significant high-grade gold-silver historical resource.
Jonathan George, CEO and Director of Ridgestone, commented, "We are very excited for this addition to Ridgestone Mining project portfolio as we increase our footprint in Mexico. The Guadalupe y Calvo project represents a significant asset that we look to advance through exploration which will include a review and 3D interpretation of the current drill hole database in the coming months. Our technical team sees the great potential in the project to grow the resources and generate new high-priority targets. This project compliments our Rebeico Project as we look to build value for all stakeholders."
Guadalupe y Calvo Project Highlights:
- Host to a historical NI 43-101 Indicated Resource of 236,543 gold-equivalent ounces grading 3.95 g/t AuEq plus an Inferred Resource of 16,713 gold-equivalent ounces grading 3.38 g/t AuEq. The resource remains open for expansion along strike and at depth.
- Prolific production history of over 2.0 million ounces of gold and 28.0 million ounces of silver with estimated head grade of 37gpt Au and 870gpt Ag.
- The mine's main structural feature is the northwest striking Rosario fault complex with a total width of the mineralized zone up to 80 metres. Historic underground mining widths of high-grade gold-silver mineralization were up to 10 metres.
Endeavour Silver Corp. reported in a technical report titled "Technical Report on the audit of the mineral resource estimate for the Guadalupe y Calvo project in Chihuahua State, Mexico" was prepared by Micon International Ltd. as of December 15th, 2012 the above historical mineral resource. For Ridgestone's purposes, the estimate for GyC are considered to be historical estimates under National Instrument 43 101 ("NI 43 101") as they were prepared by Endeavour before Ridgestone entered into the agreement to acquire the projects from Endeavour. A Ridgestone qualified person has not done sufficient work to date to classify these historical estimates as current mineral resources. Ridgestone is not treating these historical estimates as current and the historical estimates should not be relied upon. The mineral resource was estimated following the CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines, prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council on 27 November, 2010. The resource estimate was conducted using the Vulcan mining software to produce a three-dimensional resource model for the Rosario and Nankin veins.
Terms of the Option Agreement
Under the terms of the Option Agreement, Ridgestone has the right to acquire a 100% undivided interest in the project through staged cash and share payments, plus minimum work expenditures, totalling US$4 million over a four-year period.
Option Agreement Summary Terms
Table 1
To view an enhanced version of Table 1, please visit:
https://orders.newsfilecorp.com/files/5790/73266_table1.jpg
Upon completion of the acquisition of a 100% interest in the Property, Ridgestone will grant a 2% Net Smelter Return Royalty (the "NSR") to Endeavour. Ridgestone will have the option to buy back the 2% NSR for US$2,000,000 prior to the commencement of commercial production.
In addition, Ridgestone Mining has agreed to pay a finders fee of 509,375 shares and 509,375 warrants exercisable at $0.19 per share for two years to Nico Consulting Inc. The Option Agreement and related finders fee remain subject to the final approval of the TSX Venture Exchange.
Mr. James Atkinson M. Sc. P. Geo. is the qualified person as defined by National Instrument 43-101 and has reviewed and approved the technical information in this news release.
About Ridgestone Mining Inc.
Ridgestone is a TSX Venture Exchange-listed junior mineral exploration company with offices in Taipei and Vancouver, B.C. The Company's focus is on precious metals and copper in Sonora, Mexico, and specifically the Rebeico Gold-Copper project.
For further information, please contact:
Rad Rajaram - Manager Corporate Relations and Business Development
Telephone: 416-732-0604
radha@ridgestonemining.com
This news release contains forward-looking statements or information (collectively referred to herein as "forward-looking statements"). Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements and are not guarantees of future performance of the Company. In this news release such statements include but are not limited to any ongoing drilling programs or exploration results, the receipt of Exchange Approval, or the completion of the Acquisition. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. These forward-looking statements reflect management's current views and are based on certain expectations, estimates and assumptions which may prove to be incorrect. A number of risks and uncertainties could cause our actual results to differ materially from those expressed or implied by the forward-looking statements, including those described in the Company's regulatory filings available on www.sedar.com. Should one or more of these risks or uncertainties materialize, or should any of the Company's assumptions prove incorrect, actual results may vary in material respects from those projected in the forward-looking statements. Readers are cautioned that the foregoing list of risks, uncertainties and other factors is not exhaustive. Unpredictable or unknown factors not discussed could also have material adverse effects on forward-looking statements. The impact of any one factor on a particular forward-looking statement is not determinable with certainty as such factors are dependent on other factors, and the Company's course of action would depend on its assessment of the future considering all information then available. All forward-looking statements in this news release are expressly qualified in their entirety by these cautionary statements. Except as required by law, the Company assumes no obligation to update forward-looking statements should circumstances or management's estimates or opinions change.
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.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/73266
