Coyote Project

Silver-Gold
1053 Hectares

Argentum Silver Corp. holds an option to earn a 100% interest in Soltoro's Coyote Project

Argentum Silver Corp. (ASL:TSX-V) may acquire a 100% undivided interest in Soltoro’s Victoria and Coyote silver gold projects by (1) Paying CDN$255,000 in total cash payments, (2) issuing an aggregate 5,000,000 common shares of Argentum Silver and (3) spending a total of CDN$1.1 million on exploration over 2 years. Soltoro retains a 3% NSR interest in each project whereby 1% can be purchased for US$1.5 million to a maximum of 2% for each project. The earn-in period can be accelerated at the discretion of Argentum Silver. The Companies have agreed to use best efforts to complete an option agreement by April 15, 2011 whereby Argentum will pay Soltoro a total CDN$135,000 in cash and issue 1,500,000 shares of Argentum Silver with a commitment to pay the balance of cash and shares by the first anniversary of the letter agreement.

Location: The Coyote Project is located in western Jalisco State, Mexico, in the municipality of Ayutla, at an elevation of between 1600 and 2200 masl. It is accessed from Guadalajara (the capital city of Jalisco) 115 km west along a paved highway to Volcanes and Tierra Blanca then onto gravel roads to the small town of Chilocoyote, all drivable year-round.

History: The historic El Tajo mine was the largest old mine which was primarily mined for silver with gold credits around 1890 through to the Mexican revolution. Two other underground mines are known on the property in addition to numerous smaller surface workings. The area was placed into a Mexican National Mineral Reserve in the 1970's and mapping and sampling was completed by the Consejo de Recursos Minerales in the late 1970's. Soltoro is in the process of acquiring and reviewing these historic reports.

Geology: The area of the Coyote Project is located in the western portion of the Jalisco Block and is surrounded by the younger Trans Mexican Volcanic Belt. The main rock outcropping on the property is a rhyolite tuff which hosts numerous epithermal quartz veins.

Mineralization at the Coyote Project is silver with lesser gold hosted in a banded and brecciatied quartz veins. The mineralized zone, as seen by Soltoro staff, extends over an area of about 2500m by 2000m. Five principal veins systems with a cumulative strike length of at least 5 km are known which appear to be related to a set of strike slip faults and their subsidiary dilation zones. Mineralization is known to exist over at least 100m vertical distance.

Recent programs: In fall of 2007 a property visit was conducted. Results from that visit confirmed the location of the old mines and indicated that there does appear to be economic grades of silver with added gold credits. Sampling returned values in channel samples as follows:

Sample # Channel Length (m) Au/gpt Ag/gpt
755005 1.65 1.020 110
755010 1.4 0.238 216
755011 0.9 0.190 188
755012 1.0 0.095 71
755013 1.1 0.123 656
755014 1.0 0.055 108
755015 1.2 0.232 327
755016 1.7 0.135 406
755017 2.2 0.125 102
755018 1.6 0.022 107
755019 1.15 0.044 250
755020 0.8 0.017 133
755021 1.6 0.171 268
755022 1.9 0.045 294
755023 1.0 0.049 189
755024 1.85 0.127 142
755025 1.75 0.056 346
755026 1.9 0.456 189
755027 1.9 0.016 89
755037 2.0 0.070 101
755038 2.8 0.431 124

Follow-up mapping and sampling followed by a trenching program were carried out in the fall of 2008. A summary of the trenching results is provided in the two page summary.

Click here for PDF on Coyote Silver-Gold property - 2 page summary