BEDFORD, NS,
April 29, 2013 /CNW/ - NSX Silver
Inc. (TSXV: NSY) is pleased to report that it has signed an
amending agreement with Minera Pena Blanca SA de CV whereby each of
the remaining cash option payments for the Dios Padre Silver
Property have been extended by a period of 3 years. Total option
payments of US$500,000 have been made
to date in accordance with the Dios Padre Property Option Agreement
and six semi-annual option payments aggregating US$5,500,000 are remaining. The due date
for the next option payment in the amount of US$250,000 was originally July 31, 2013 and it is now July 31, 2016.
Hans van Hoof, Chairman and Chief
Executive Officer of NSX Silver commented:
"I am very pleased that we have been able to
negotiate the extension of the remaining option payments for Dios
Padre. The three year extension provides NSX Silver with the
opportunity to advance the Dios Padre Project in a methodical
manner without the need to raise significant highly dilutive
funding in the immediate future to fund the option
payments.
We consider the Dios Padre Project and our
extensive surrounding properties to have significant potential for
the discovery of further precious and base metal occurrences.
NSX Silver has assembled a highly qualified exploration team that
is undertaking the systematic exploration of our mineral property
assets in Sonora State and we look forward to reporting on the
results of this ongoing work."
Under the terms of the Option Agreement as
amended, NSX Silver can acquire a 100% undivided interest in the
Dios Padre Property from Minera Pena Blanca SA de CV by making
further optional cash payments totaling US$5.5 million as follows;
- US$250,000 on or before
July 31, 2016
- US$300,000 on or before
January 31, 2017
- US$300,000 on or before
July 31, 2017
- US$500,000 on or before
January 31, 2018
- US$500,000 on or before
July 31, 2018
- US$3,650,000 on or before
January 31, 2019
The Option Agreement also provides for three
remaining annual share issuances of 250,000 shares of NSX
Silver. The due dates for the issuance of the shares are
respectively June 8, 2013,
June 8, 2014 and June 8, 2015.
Concurrently with the execution of the Amending
Agreement, NSX Silver has entered into a consulting agreement with
Mr. B. J. Kennemur pursuant to which
NSX Silver has agreed to pay to Mr. Kennemur an annual consulting
fee of USD$125,000 during the three
year extension period, subject to the Dios Padre Property Option
Agreement remaining in effect.
The Dios Padre Property is subject to a 3% net
smelter return royalty in favor of the Minera Pena Blanca SA de CV,
two-thirds of which may be repurchased by NSGold at any time prior
to the commencement of commercial production by the payment of
US$2 million.
Dios Padre Property
The Dios Padre property is located in the
Eastern Sierra Madre Mountain range in east central Sonora near the border with Chihuahua.
The property is situated within the prolific Sierra Madre
Occidental in a Cretaceous volcanic rock sequence, which is the
host environment for significant gold and silver deposits,
including those found in the nearby Sahuaripa, Mulatos, Dolores and
Ocampo mining districts. The Property is comprised of three
contiguous exploitation concessions covering an area of 285
hectares which NSX Silver holds under option.
Initial discovery of high grade silver
mineralization at Dios Padre is reported to
have occurred around the year 1640. Historic estimates of
approximately 16 million ounces of silver were reportedly mined by
Jesuit operations in the 17th Century and by L.V. Limited between
1860 and 1910. Limited mining and milling operations were
also reported to have occurred during the 1960's and 1970's.
NSX Silver to date has completed detailed
surface geochemistry sampling and geologic mapping, as well as two
drill campaigns at Dios Padre. The results from the 2012
Phase 1 drill program are detailed in the NSX Silver press releases
dated June 14, 2012 and July 10, 2012 and the results from the 2013 Phase
2 drill campaign are detailed in the NSX Silver press release dated
April 4, 2013.
Drilling during the Phase 2 Program encountered
multiple thick zones of silver mineralization ranging up to 41
meters in thickness (DP-26-2013 returned 288.2 grams per tonne
silver from 91.3 meters to 132.3 meters). Also of significant
interest is the occurrence of low grade gold mineralization with
silver mineralization in a number of the drill holes. Gold
occurs in separate zones often accompanied by low silver values.
Gold does not appear to have a spatial relationship with high grade
silver mineralization, suggesting multiple mineralizing events.
These gold zones were also indicated by historic drilling and
warrant further study. NSX Silver technical personnel are reviewing
and analyzing all data generated from this program together with
data generated from the Phase 1 program and from the historic
exploration programs with a view to updating the comprehensive
geological model to assist in the project evaluation.
Qualified Person
John E. Hiner,
Licensed Geologist and Registered Member of SME, a qualified person
as defined by National Instrument 43-101, recently visited the
property and has reviewed and approved the information provided in
this news release.
About NSX Silver
NSX Silver Inc. is a mineral exploration company
actively exploring for silver and associated metals in Mexico. NSX Silver's principal property
is the Dios Padre Project located in Sonora State, Mexico which is held under option agreement.
Additionally the Company holds approximately 6,000 additional
hectares of prospective ground in the vicinity of the Dios Padre
Project. NSX Silver's shares are listed on the TSX Venture Exchange
under the symbol NSY.
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.
SOURCE NSX Silver Inc.