Hispania Resources Acquires Lumbrales Deposit Permit, Aims for Continued Growth in Spain's Mining Sector

June 07, 2023 9:17 AM EDT | Source: Hispania Resources Inc.

Toronto, Ontario--(Newsfile Corp. - June 7, 2023) - Hispania Resources Inc. (TSXV: ESPN) ("Hispania" or the "Company") is pleased to provide an update on its 100% owned Lumbrales Deposit ("Lumbrales"), in the Stanniferous Iberian Belt of Spain. A region known for its more than 100 Tin and Tungsten deposits across Spain and Portugal, the prolific belt is set to be further enriched by Hispania's ambitious expansion plans. The Company has now acquired the Lumbrales Permit from Siemcalsa, a company controlled by the administration of Castile y Leon in Spain.

The Lumbrales Permit covers 2,900 hectares and contains the formerly producing Mari Tere mine and two other artisanal tin prospects. These sites are situated approximately 115 kilometers west of the city of Salamanca, Spain. Prior to its closure in 1986, the Mari Tere mine contained a confirmed resource of 2.5 million tons at a grade of 0.25% Tin and 100 ppm Molybdenum. Based on Siemcalsa's historical records, an additional 3 million tons of potential resources might be present, although these figures are historical and hence, are not reliable for current evaluation.

These resources are located within two parallel Quartz vein systems, which are exposed to a depth of 200 meters and stretch along a strike length of 750-meter section. This exposure was made possible by extensive surface drilling and underground development. Each vein measures between 3 to 6 meters each in width, averaging at 4 meters, and are spaced 45 meters apart. An intermittent third system exists between these two.

Cannot view this image? Visit: https://images.newsfilecorp.com/files/8711/169086_bbda132f747208b1_001full.jpg

Image 1: Detailed view of a Quartz vein demonstrating Cassiterite and Molybdenite mineralization

To view an enhanced version of this graphic, please visit:

The Mari Tere mine was initially developed with a surface shaft and four underground levels. These were operated by England's Lumbrales Mining and Power Company Ltd. from 1935 to 1941, followed by Montes de Galicia from Germany during 1941-45. More recently, Mina Duro SA, another significant player in this timeline, undertook a substantial development project. The company constructed an underground infrastructure consisting of a 658 meter long, 4.5 by 4.5 meter decline that goes down to a depth of 220 meters, as well as associated levels stretching 3,600 meters. Excavated in 1982/83, these structures remain in a well-preserved state, as can be seen in the image below.

Norman Brewster, CEO of Hispania, commented, "We are extremely excited about the acquisition of the Lumbrales permit and our expansion in Spain. The property is located in the Stanniferous Iberian Belt, a geological region our team is familiar with. This property has been a previous producer of Tin, now considered a critical metal. Given the current market forecasts of Tin, this property holds considerable financial potential. We plan to explore the expansion of the resource and consider the reprocessing of existing tailings as we begin work on the site. Equally important is the existing infrastructure, including decline ramps, surface shafts and underground developments. The construction of these features would typically take a mining company several years of permitting and work, positioning us favorably to advance this crucial project. We eagerly anticipate our continued growth in Spain."

Cannot view this image? Visit: https://images.newsfilecorp.com/files/8711/169086_bbda132f747208b1_002.jpg

Image 2: A view from the decline ramp looking upwards

To view an enhanced version of this graphic, please visit:

Following the development of the underground infrastructure, Mina Duro SA established a pilot plant to treat a 10 ton sample. In the period of 1984/85, the company constructed an on-site treatment plant capable of processing 400 tons per day and subsequently commenced mining operations. However, operations were closed in 1986 due to a fall in Tin prices. Throughout Mina Duro SA's period of activity, a total of 30,000 tons of material were mined and processed in the on-site facility.

Two images below show a longitudinal section of the Mari Tere Mine, a surface projection of the vein systems and decline ramp are shown in the included image below.

Cannot view this image? Visit: https://images.newsfilecorp.com/files/8711/169086_bbda132f747208b1_003.jpg

Image 3: Longitudinal Section

This image shows the relationship between diamond drill holes, underground openings, surface decline, and surface shaft.

To view an enhanced version of this graphic, please visit:

Cannot view this image? Visit: https://images.newsfilecorp.com/files/8711/169086_bbda132f747208b1_004.jpg

Image 4 Surface Projection

The surface projection of the two vein systems (green), decline ramp (yellow), and diamond drill locations (red) is depicted in this image.

To view an enhanced version of this graphic, please visit:

During its tenure, Siemcalsa carried out extensive surface exploration programs. These included trenching and sampling, along with geophysics and geochemistry studies. This work resulted in the extension of the mineralized veins along strike and unveiled the possibility of a third vein system and other prospects.

Furthermore, the permit for the Lumbrales sites has been renewed for a three-year term, effective until 2026. Mr. Brewster, CEO of Hispania, expressed the company's immense satisfaction with this development, noting, "We are overwhelmingly pleased with the Administration, our stakeholders, and partners, who helped make this process a reality. We look forward to growing our presence in and with the region."

About Hispania Resources Inc.

Hispania Resources Inc. is a mineral exploration company focused on mining opportunities in Spain. Hispania is currently focused on developing the long-term mining potential of its core assets, the Zinc, Copper, Lead enriched Puebla de la Reina ("PBR") property in the low-risk and historic mining district of Extremadura in Southwest Spain; as well as the Marie Tere project in Lumbrales. Hispania, through its subsidiary, La Joya, has entered into a purchase agreement with Auplata S.A. to acquire a 100% interest in the PBR property and has acquired the Lumbrales property. The management of Hispania contains industry veterans who have more than 120 years of mineral exploration and production experience in multiple jurisdictions and have successfully managed multiple international mining companies. This includes in Spain, where some of the team was responsible for the founding and building of Iberian Resources, with the continued support of the local and regional governments, including the well-developed and sophisticated transportation and mining infrastructure.

For more information on Hispania Resources Inc., visit: http://HispaniaResources.com/.

Contact Information

For more information or interview requests, please contact:

Norman Brewster - Chief Executive Officer
(416) 970-3223

Rahim Allani - Director
(416) 457-0549

Forward-Looking Information

This news release contains "forward-looking information" within the meaning of applicable securities laws. Forward-looking information can be identified by words such as: "intend", "believe", "estimate", "expect", "may", "will" and similar references to future periods. Examples of forward-looking information include, among others, the expected commencement of work on the PBR project, the expected meetings with local drilling firms, as well as information relating to Hispania. Although Hispania believes that, in light of the experience of its officers and directors, current conditions and expected future developments and other factors that have been considered appropriate, the expectations reflected in this forward-looking information are reasonable, undue reliance should not be placed on them because Hispania can give no assurance that they will prove to be correct. Readers are cautioned to not place undue reliance on forward-looking information. Actual results and developments may differ materially from those contemplated by these statements depending on, among other things, the risk that the future plans of Hispania may differ from those that currently are contemplated Additional risks include those disclosed in the Filing Statement, which are incorporate herein by reference and are available through SEDAR at www.sedar.com. The forward- looking statements contained in this news release are made as of the date hereof, and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, except as required by law.

This news release is not an offer of the securities for sale in the United States. The securities described in this news release have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons (as defined in Regulation S under the U.S. Securities Act of 1933, as amended) absent registration or an exemption from registration. This news release shall not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of the securities in any state in which where such offer, solicitation or sale would be unlawful.

Neither the 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 news release.


To view the source version of this press release, please visit https://www.newsfilecorp.com/release/169086