May 24, 2013
Argentum Clarifies and Retracts Previously Issued Technical Disclosure
May 24, 2013: Vancouver, B.C.: Argentum Silver Corp. (TSX-V: ASL) announces that, as a result of a review by the British Columbia Securities Commission (the "BCSC"), we are issuing the following news release to clarify our disclosure. The Company advises readers not to rely on such prior disclosure that is clarified in this news release as they may continue to be found in the public domain.
On May 13, 2013, Argentum Silver issued a news release (the "News Release") containing a range of tonnage and grades for a target potential (or target deposit) of contained silver content for the El Tajo Zone on its Coyote Project located in Jalisco Mexico (the "Coyote Project"). This news release referenced and was based upon an independent potential target study (the "Study") conducted by GeoVector Management Inc. of Nepean, Ontario, which was completed on March 27, 2013. The potential target in the News Release and the Study are contrary to and prohibited by section 2.3(1)(a) of National Instrument 43-101 ("NI 43-101") because they are not conceptual estimates of the potential quantity and grade of a target for further exploration (exploration target).
The Company hereby retracts the News Release and the Study, including all references to the target potential. Although the News Release did not provide a link to the Study, the Study was made available by a link on the Company's website on May 13, 2013. The link was removed by the Company within 48 hours.
The discussion and analysis in the Study indicates the target was based on precise calculations using specific key assumptions and parameters, all of which are not consistent with the conceptual nature of an exploration target. The Study reported the estimate at various cut-off grades to the nearest tonne and at very precise grades that are again inconsistent with a conceptual estimate of potential. The Study also referred to the target potential as a resource, a deposit and an ore body, terms synonymous with mineral resources or mineral reserves. The Study further treated the target potential as a mineral resource by suggesting, amongst other things, that it has the potential to be economically mined and will be developed by Argentum. The Study further failed to include the required cautionary language required for exploration targets.
The Company wishes to clarify that the Study is not a "Technical Report" as defined in NI 43-101. The Company retracts the Study as it is not compliant with NI 43-101 and, as such, should not be relied upon. The sole dissemination of the Study was through the link on its website. The Company removed the link to the Study from its website on May 15, 2013, and will not further disseminate the Study to the public. The Company wishes to confirm that there is no current mineral resource for the Coyote Project. The Company will promptly disclose any material mineral resource estimate it receives for the Coyote Project and file a supporting technical report thereafter.
The BCSC has advised the Company that the release of the Study triggered the requirement to prepare and file a technical report on the Coyote Project under NI 43-101 within 45 days. The Company is currently proceeding to satisfy this requirement.
The disclosure of technical and scientific information in this news release was reviewed and approved by Ben Whiting, M.Sc., P.Geo., a director of the Company and a "qualified person" under NI 43-101.
About Argentum Silver
Argentum has earned a 100% interest in the Coyote silver-gold project and Victoria property located in Jalisco, Mexico. Argentum also owns a 100% interest in the Lachiguiri and Silacayoapan properties, all located in Oaxaca, Mexico.
On behalf of the Board of Directors of Argentum Silver Corp.
President and Chief Executive Officer
Argentum Silver Corp.
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.
This News Release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. Argentum relies upon litigation protection for forward-looking statements.