Sailfish Updates Mineral Resource Estimate for the Gavilanes Silver Project; Highlighted by an Inferred Resource of 22.4 Million oz AgEq at 245.6 g/t AgEq
Tortola, British Virgin Islands, May 18, 2021 – Sailfish Royalty Corp. (TSX-V: FISH, OTCQX: SROYF) (the “Company” or “Sailfish”) is pleased to report the results of an updated mineral resource estimate prepared by Mine Development Associates (“MDA”), a division of RESPEC, located in Reno, Nevada, on the Company’s wholly owned Gavilanes silver property (“Gavilanes”) located in Durango, Mexico. A technical report for the updated mineral resource estimate jointly prepared by MDA and Resource Geosciences Incorporated (“RGI”) is expected to be filed in accordance with National Instrument 43-101, Standards of Disclosure for Mineral Projects (“NI 43-101”) under the Company’s SEDAR profile at www.sedar.com within 45 days of this news release, and on the Company’s website at www.sailfishroyalty.com.
Highlights
- The updated mineral resource estimate of 22.4 million ounces (“oz”) of silver equivalent (“AgEg”)
at 245.6 AgEq (see Exhibit 1) is comprised of the following metals:
o 18.9 million oz of silver (“Ag”) at 207 g/t Ag
o 13,700 oz of gold (“Au”) at 0.15 g/t Au
o 7.8 million pounds (“lbs”) of copper (“Cu”) at 0.12% Cu
o 37.9 million lbs of lead (“Pb”) at 0.61% Pb
o 27.2 million lbs of zinc (“Zn”) at 0.43% Zn - More than 84% of the AgEq mineral resource estimate is Ag only
- The resource is all within 330 meters (“m”) of surface and remains open along strike and at depth
- Only three veins (Guadalupe-Soledad, San Nicolas and Descubridora) are included in the updated mineral resource estimate (see Exhibit 2)
- Several nearby veins with similar surface geochemistry (El Muerto, La Tuna, La Cruz) or geologic characteristics (Veta 1 and Providencia) have been mapped but not yet drill tested (see Exhibit 2)
The updated mineral resource estimate is based on an improved geologic model that considers distinct structural controls of mineralized zones that were previously modeled as an unconstrained stockwork zone and distinct mineralization models for all the metals (Ag, Au, Cu, Pb and Zn) reported in the resource. This refinement to the geologic model by MDA has significantly increased the grade profile of Gavilanes and better defined the orientation and distribution of the mineralization. In addition to the improved grade profile,
the technical report is expected to highlight the exploration potential at Gavilanes. High priority targets include testing the strike and depth extents of the three veins included in the updated mineral resource estimate and drill testing the several mapped yet untested veins nearby. Cesar Gonzalez, Chief Executive Officer of Sailfish states that, “this updated mineral resource estimate places Gavilanes among the highest-grade silver exploration projects in Mexico and is a key milestone in the planned spinout of the asset. We are excited to be one step closer to maximizing value for shareholders,
especially with silver trading near seven-year highs.”
Updated Mineral Resource Estimate
The updated mineral resource estimate is summarized in Exhibit 1 and was generated using reinterpreted data from 47 diamond drill holes (9,623.9 m) that Santacruz Silver Mining Ltd. drilled in 2012 and 2013.
The updated resource was calculated by applying some consideration of the confidence in the underlying database, sample integrity, analytical precision/reliability, and geologic interpretations. The exploration
drilling completed is of sufficient quality to allow for higher classification. However, all material in this estimate is classified as Inferred due to the complex geology, significant gaps in the assay data created by
lack of sampling, some spatial imprecision in the block model coding, and a lack of metallurgical testing data. It is expected that a majority of these Inferred resources would be upgraded to Indicated resources with additional sampling of previously drilled holes, continued exploration drilling, collection of metallurgy data, and additional density data measurements. The resources are reported at a cutoff grade of 100 g/t AgEq (see calculation below Exhibit 1) for underground mining. MDA used their judgment with respect to the technical and economic factors likely to influence the “prospects for eventual economic extraction” and believes that all cutoffs listed in Exhibit 1 could eventually be a basis for economic extraction of the resources, though only the 100 g/t AgEq cutoff is the current resource. Those technical factors include anticipated metallurgical recoveries, current operating costs for
anticipated mining and processing, and metal prices consistent with recent market pricings. These Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.
