Prospero Silver (TSXV: PSL; US-OTC: PSRVF) has begun phase two drilling at its Pachuca SE project in Hidalgo State, Mexico, shortly after Fortuna Silver Mines (TSX: FVI; NYSE: FSM) exercised its option to acquire up to 70% of the project in late 2018. Fortuna can earn its interest in Pachuca SE by spending US$8 million on the project, including at least US$1 million in the first year, and completing a preliminary economic assessment.Prospero recently mobilized a drill rig to Pachuca and intends to complete a six-hole, 4,200 metre drill program.
The program is a follow up to last years' drill campaign, which Prospero completed in the first quarter of 2018 with financing from Fortuna. It drilled 1,800 metres across three holes. The company says Holes 1 and 3 possibly intersected the tops of two epithermal vein systems, while Hole 2 cut three shallow argillic caps and three mineralized veins at depth.
Highlights from the program included: 193 grams per tonne silver and 1.04 grams gold over 0.5 metre from 657 metres downhole in Hole 2 and 870 grams silver and 1.74 grams gold over 0.2 metre from 407 metres downhole.
The 66.7 sq. km project sits 24 km southeast of the city of Pachuca and along strike from the historic Pachuca-Real del Monte epithermal vein camp.
The company is drilling Pachuca's Varal West target with Phase 2's first hole. Varal West lies 1 km west of the veins cut by Hole 2.
Shares of Prospero are currently trading at 7 ? with a 52-week range of 5 ? to 15 ?. The company has a $3.6 million market capitalization.
Shares or Fortuna are currently trading at $4.46 with a 52-week range of $4.22 to $7.78. The company has a $713 million market capitalization.
This story first appeared on The Northern Miner.