Red Oak & IPT Executes LoI

 

Nuevo Taxco Silver-Gold to be acquired 

Red Oak Mining and Impact Silver (IPT) have executed a non-binding Letter of Intent (LoI) for an arm’s length transaction whereby Red Oak may earn a 100% interest in the Nuevo Taxco Silver-Gold Project located approximately 80 km south west of Mexico City and west of the municipality of Tetipac within the Pregones Silver-Gold District. 

Impact Silver conducted initial geological work on the property mapping twenty-one (21) high grade silver veins and identifying initial priority drill targets. Under terms of the agreement (subject to regulatory approval),

Red Oak may earn 100% interest in the approximately 1,100 hectare property by completing exploration expenditures of $1,400,000, making cash payments of $300,000 and issuing 3,500,000 common shares to IPT over a 3-year period. 

Pregones Mining District The Pregones Mining District is one of three principal production centers with the Zacualpan District situated ten kilometers to the northwest and Taxco District ten kilometers to the southeast. 

The Pregones Mining District shares the same stratigraphy as the Zacualpan District lower Cretaceous rocks of the Telooapan and Acapetlahuaya Formations, both of which are a mixed volcanic and sedimentary assemblage. 

A collection of a total of 395 rock samples with high silver values grading over one (1) kilogram per tonne silver occur in three samples (1,430, 1,230, 1,100 g/t). 

18 samples between 500 and 900 g/t silver and 92 samples between 100 and 499 gr/t silver, most of which come from the twenty-one (21) veins thus far identified. “The Nuevo Taxco Silver-Gold Property is an exciting exploration target and considered highly prospective for high grade silver and gold mineralization. Our priority for Impact Silver is increasing annual production and expanding our reserves within proximity of our Guadalupe and Capire production facilities.  

We determined the best scenario was to option Nuevo Taxco Silver-Gold Property to Red Oak so warranted exploration and drilling can be conducted with the objective of establishing a maiden resource estimate. Impact Silver will provide technical direction to assist Red Oak on defining and executing their initial exploration drill program”, states Frederick Davidson, CEO of Impact Silver. 

“To acquire such a prospective project like Nuevo Taxco and to be working with a respected, successful producer like Impact Silver provides additional resources, creditability and understanding on a project that is of added value to our shareholders. 

Silver provides a unique combination of being a precious metal as well as a "green economy metal" for its use in battery electric vehicles, alternative energy and electronics which we believe makes silver a high value metal to be targeting for development.” stated Jay Roberge, CEO of Red Oak Mining Corp.