Rio Silver Inc. (TSXV: RYO) is not your typical exploration and mining company. Headquartered in Vancouver, Canada, the company has set sights on several prospective mining projects in Peru as part of its growth strategy. Its core business revolves around the advancement of exploration precious metals, primarily Silver along with Gold at its principle holdings in south central Peru.
Rio Silver Flagship Projects
Ninobamba Silver Project
Ninobamba Silver Project is the company’s flagship project located in a renowned silver and gold belt 330 kilometers south of Lima in Peru. Sitting on 3,933 hectares, the prospective project is best known more for silver than gold deposits. Rio Silver has rights to the silver project through its subsidiary Minera Rio Plata that owns 100% of the mineral rights.
Rio Silver is not the first company to purse precious metals, among other minerals, at the Ninobamba Silver project. AngloGold Exploration has already explored the field, focusing on an area with an intense hydrothermal surface alteration.
AngloGold company drilled five core holes totaling 861 meters. Previous assay results indicated prospects of 87 grams per ton silver over 130 meters drill interval. Bear Creek Mining, Newmont Mining Corp., and Southern Peru Copper Corp are some of the other companies that have carried out significant exploration operations at the project in addition to contributing millions in metallurgical and processing studies once the initial exploration data had been compiled.
The previous exploration programs have provided Rio Silver with data that has indicated 2 large silver and gold mineralized deposits resulting in highly prospective silver/gold targets for economic feasibility. Mineralization data has so far shown potential for outcropping as well as bulk tonnage at depth.
Previous samples taken have also shown prospects of mineralization at the North Zone of the Ninobamba Silver project covering 400 meters. Furthermore, trenching has uncovered silver mineralization for an additional 400 meters in the South Zone of the project. Resource potential reports for the area are next in line after these encouraging developments and a complete review of the over $10 million of historic work combined with computer modelling of all the compiled data existing to date for both the NinoBamba and neighboring Jorimina mineralized deposits, never before held by only one company.
The company has had earn-in joint venture partners in the past but Rio Silver has since moved on with the project and is planning to initiate the permitting process as it seeks to commence the first phase drill program at the prospective Ninobamba Silver/Gold project on their own, increasing the company’s value proposition.
To be Announced:
With additional goals of sustainability, the company is advancing certain initiatives soon to be concluded with news expected in the coming quarter.
Gerow Lake Project is a prospective copper-gold prospect that Rio Silver owns in Gerow Lake, Ontario, Canada. The company acquired rights to the 3,456 hectare mining property in 2006, buoyed by the potential for copper-gold mineralization. The staking of an additional 5,312 hectares, as well as the reconsolidation of a partners’ interest in 2009, resulted in the company controlling 100% interest in the prospect.
Rio Silver has already completed an airborne geophysical survey of the Gerow Lake Project. It is currently conducting consultation with stakeholders made up of MNDM and local First Nations as it seeks permission for plans to advance this exciting discovery. Exploration work will only commence upon the company reaching an agreement with all stakeholders.
Recent Developments
In the recent past, Rio Silver has carried out a capital raise drive through a non-brokered private placement of 10 million units made up of the company’s shares. Priced at $0.05 a unit, the company went on to raise $500,000 in gross proceeds.
The capital raise drive came as the company sought additional funds to continue works at the Ninobamba silver and gold project in Peru as well as new initiatives within Peru. Part of the funds will also go towards financing immediate financial obligations as well as for working capital and other new projects in Peru. The private placement comes hot on the heels of Rio Silver also settling an aggregate of $80,503 of debt through the issuance of 1.6 million common shares in the second quarter of the year.
Bottom Line
Rio Silver’s turnaround has started gathering pace after the stock hit the $0.025 mark earlier. Amidst this base line, Rio Silvers’ recent price activity has indicated the stock is on an upward momentum and gaining investor confidence. The bounce-back can be attributed to investors taking note of the company’s tremendous potential backed by prospective mining projects.
The future can only be bright for Rio Silver as it brings its flagship Ninobamba silver and gold property to fruition with the cash injection of $574,000 recently raised through an oversubscribed private placement program as well as advance plans for the Gerow Lake asset in Ontario, Canada.
