Silver Sands signs LOI to acquire Fairfield project

Executive Summary

• Silver Sands Resources Corp. has entered into a non-binding Letter of Intent (LOI) to acquire a 100% interest in the Fairfield Gold Project, a gold-silver property with porphyry copper potential located in Nayarit, Mexico.
• The acquisition involves an earn-in structure requiring aggregate cash payments of $675,000 USD and the issuance of 5.15 million common shares over a four-year period.
• Historical exploration data from ASARCO and the Mexican Geological Survey indicates significant gold and silver mineralization, including high-grade intercepts on the Miravalles vein.

Key Details

• Transaction Structure: Non-binding LOI to acquire 100% interest in the 712.7-hectare Fairfield Gold Project.
• Earn-in Consideration:
  • Aggregate cash payments totaling $675,000 (U.S.).
  • Issuance of 5.15 million common shares over a four-year period.
• Finder’s Fee: Agreement to issue 1.05 million common shares payable upon execution of the definitive agreement, subject to Canadian Securities Exchange (CSE) approval and statutory hold periods.
• Property Location: Situated approximately 70 km northeast of Puerto Vallarta and 25 km southwest of Tepic, in the state of Nayarit, Mexico.
• Historical Exploration Highlights (ASARCO, 1926-1935):
  • Two adits driven on the 1,500-metre Miravalles vein.
  • Identified small shoots of mineralization averaging 31.2 g/t gold and 401 g/t silver.
• Historical Drilling Results (Servicio Geologico Mexicano, 2006):
  • Hole DDH-3: Intersected the Miravalles vein at a shallow angle.
    • 0.55m true thickness grading 12.15 g/t Au and 443 g/t Ag at 178.1m depth.
    • 3.4m true thickness grading 23.49 g/t Au and 64.13 g/t Ag at 183.1m depth.
    • Interval of undetermined true thickness from 196.15m to 201.2m averaging 4.71 g/t Au and 16.8 g/t Ag.
• Chip Sampling Results:
  • Parallel Estrella vein returned 43.1 g/t Au and 155 g/t Ag over 0.10m.
• Geology: Project lies on the northern margin of a Cretaceous hornblende granodiorite pluton. Mineralization is spatially and genetically related to the pluton. The Miravalles vein strikes 300 degrees, dips 65-76 degrees northwest, and crops out along 1,500 metres. Alteration includes phyllic (quartz, sericite, pyrite) grading into propylitic (quartz, chlorite, calcite, pyrite). Mineralization includes chalcopyrite, sphalerite, and galena.
• Conditions Precedent: Completion is subject to satisfactory due diligence, negotiation of a definitive agreement, and receipt of necessary regulatory approvals, including CSE approval.

Notable Quotes

• "The Fairfield gold project represents an excellent opportunity in a top-notch mining-friendly jurisdiction for Silver Sands. The preliminary exploration by ASARCO demonstrates the Miravalles vein carries significant gold and silver while parallel vein structures have only been minimally explored, giving the project considerable blue-sky potential." — Keith Anderson, Chief Executive Officer