Rio Silver sets out steps for surface Ag at Maria Norte

Executive Summary

• Rio Silver Inc. outlined a five-step, capital-efficient development plan for its Maria Norte project in Peru, aiming to achieve near-term production by prioritizing high-grade surface silver mineralization before transitioning to underground mining.
• The strategy leverages existing infrastructure, including leased camp facilities and nearby third-party toll milling operations, to minimize upfront capital expenditures and accelerate the timeline to cash flow.
• Key immediate actions include finalizing community access agreements, mobilizing personnel via existing camps, initiating metallurgical testwork, and preparing portal access for underground development.

Key Details

• Project Location: Maria Norte project, located in Peru's Huachocolpa silver district.
• Development Strategy: A "low-capital, fast-track" approach focusing on exposed surface and near-surface mineralization first, followed by underground portal access.
• Five-Step Plan:
  1. Community Engagement: Finalizing site access arrangements through local leadership and upcoming community assemblies.
  2. Camp Mobilization: Leasing existing camp facilities to allow rapid mobilization of personnel and equipment without new construction delays.
  3. Surface Access: Initial development targets exposed surface veins and near-surface mineralization confirmed by recent NI 43-101 verification sampling.
  4. Portal Preparation: Advancing portal access in parallel with surface work to enable underground entry to shallow depths.
  5. Processing: Utilizing contract (toll) milling at nearby operating facilities to avoid building stand-alone processing infrastructure.
• Strategic Positioning:
  • Located approximately 2.5 km from a planned 3,000-tonne-per-day processing facility (outlined in a recent PEA by a nearby operator).
  • Controls approximately 400 metres of the Tangana West vein, a historically prospective trend.
  • Regulatory framework allows development and exploration activities to proceed in parallel.
• Next Steps & Timeline:
  • Metallurgical Testwork: Underway at Maria Norte to confirm conventional flotation characteristics; results expected in the near term. Testing at the Santa Rita project is also progressing.
  • Permitting: Progress toward explosives permitting approval.
  • Execution: Staged underground access and initial production activities are targeted over the coming quarters, subject to permitting and operational progress.
• Management Commentary: CEO Chris Verrico described the plan as a "short and staged, practical execution plan" designed to move from exposed mineralization to underground development efficiently, capitalizing on high silver prices and the scarcity of silver-dominant assets.

Notable Quotes

• "What makes Maria Norte compelling is the ability to start with high-grade silver already exposed at surface while systematically moving underground to capture additional low-hanging, high-value mineralization... This is not a long-dated mine build. It is a short and staged, practical execution plan designed to move from exposed mineralization to underground development as efficiently as possible, while taking advantage of existing infrastructure in a strong silver price environment." — Chris Verrico, President and CEO