Masivo Signs Option Agreement for The Cerro Colorado Project

Rhea-AI Summary

Masivo Silver Corp (TSXV: MASS) (OTC Pink: GNYPF) has signed an option agreement to acquire the Cerro Colorado Gold, Copper and Silver project in Sonora, Mexico. The project, located 28km from Alamos and 11km north of Piedras Verdes copper mine, consists of two properties: El Tacon Dos (774 Hectares) and Valle Del Cobre (1875 Hectares).

The agreement terms include:

• Initial grant of 300,000 shares and an eight-hole drill program
• Annual payments over four years totaling $310,000 USD
• Optional share payments ranging from 1-2.5 million shares or equivalent cash value
• 1.5% NSR retained by sellers, purchasable for $1M USD

Historical sampling revealed significant mineralization, including 2200 g/t Ag and 4.57 g/t Au in a collapsed tunnel, and 1840 g/t Ag, 4.8 g/t Au in dump samples. Surface sampling showed values between 12 to 561 g/t Ag with anomalous Gold and Copper. Drilling is targeted to begin in May 2025.

Positive

• High-grade historical samples indicate strong mineralization potential (2200 g/t Ag, 4.57 g/t Au)
• Strategic location near major copper mine (Piedras Verdes)
• All necessary permits already secured for immediate drilling
• $75,000 USD existing drill credit reduces initial exploration costs

Negative

• Significant future cash payments required ($310,000 USD over 4 years)
• Potential share dilution from optional share payments (up to 7.3M shares)
• Historical samples are selective and may not represent actual mineralization
• Project requires substantial environmental liability responsibilities

Vancouver, British Columbia--(Newsfile Corp. - April 3, 2025) - Masivo Silver Corp. (TSXV: MASS) (OTC Pink: GNYPF) ("Masivo" or the "Company") is pleased to announce that on April 1, 2025 it completed the signing of an arms-length agreement to acquire the Cerro Colorado Gold, Copper and Silver project in the state of Sonora, Mexico with Jorge Rafael Gallardo Romero, Minera GoldZone S.A. de C.V. and partners. This project is located 28 kilometres from the city of Alamos, Sonora and 11 kilometres north of the Piedras Verdes open pit copper mine, one of Mexico's largest.

"With the option agreement signed and all necessary permits already in hand. We are fully prepared to move forward," said David Coburn, CEO of Masivo Silver. "The drill targets are being carefully defined, being prioritized, and we are mobilizing immediately to begin drilling these high-grade silver zones. This is a significant milestone for the Cerro Colorado Project, and we are excited to start unlocking its full potential."

Masivo Silver Corp and Minera Goldzone agreed on:

Upon signing the definitive agreement, Masivo Silver Corp will grant 300,000 shares and begin discussions with the exploration team for an eight-hole drill program at Cerro Colorado.

Upon the first anniversary of completing the eight-hole drill program, Masivo will pay $60,000 USD and a second payment of either 1,000,000 Masivo shares or $100,000 USD.

Upon the Second anniversary Masivo will pay $70,000 USD and a second payment of either 1,500,000 Masivo shares or $150,000 USD.

Upon the third anniversary Masivo will pay $80,000 USD and a second payment of either 2,000,000 shares or $200,000 USD.

Upon the fourth anniversary Masivo will pay $100,000 USD and a second payment of either 2,500,000 shares or $250,000 USD.

Where in each selection between shares and cash, Masivo can further elect to settle a cash election using shares based on a 10-day weighted average share price formula calculating the number of shares issued. The 10-day weighted average price would begin 15 trading days before the anniversary date and end 5 trading days before the anniversary date.

Upon the 48-month anniversary and all commitments between Masivo Silver Corp and Minera Goldzone and Partners involved have been met at 100%, the concession title and all mining rights will be granted to Masivo Silver, Minera Goldzone and Partners will keep 1.5% NSR which Masivo can buy the 100% for $1,000,000 USD.

The Cerro Colorado project consists of two properties, the El Tacon Dos (Cerro Colorado) concession containing 774 Hectares (1911 Acres) and the Valle Del Cobre concession containing 1875 Hectares (4631 Acres).

Masivo Silver Corp is responsible for the environmental impact in property, Masivo is responsible to pay all duties and taxes on the mining concession, these during our mining operations in the property.

Senior Mexican Geologist Jorge Rafael Gallardo along with the guidance from Mark Bailey and Brian Brewer is very close to completing the design of an eight hole drill program which will be announced in the very near future with the commencement of drilling targeted in May of 2025. Masivo will use its $75,000 USD drill credit with a Mexican drill company to start the drilling process.

In the SW part of the project, in a collapsed tunnel on the main structure a historical sample taken from the mineralzed zone reportedly returned assay values of 2200 g/t Ag and 4.57 g/t Au. As reported in "Consejo de Recursos Naturales No Removables" (now Servicio Geologico Mexicano) according to the report, this sample was taken in November of 1972 by Ing. Adalberto Vazquez P.

Four hundred meters to the NE from the reported high-grade sample, a sieve sample of the dumps from another collapsed tunnel on this mineral concession was assayed and returned values of 1840 g/t Ag, 4.8 g/t Au, 3.06% Cu, 4.5 % Pb and 2.92% Zn. This was a selective sample and may not represent underlying mineralization.

One hundred meters to the NW of the dump, a hand-made trench was opened and resulting samples returned strong anomalies including 7.2 meters true-width with 0.75 g/t Au, 159 g/t Ag, 0.24% Cu, 0.52% Pb, 0.29% Zn. These anomalous values from the leached zone of the breccia outcrop confirm the same geochemical signature of the polymetallic sulfide mineralization found below the surface in the old workings.

On the surface, the alteration zone is heavily leached with box works of different types of sulfides that were leached are clearly observed. Surface sampling returned values of between 12 to 561 g/t Ag and anomalous values of Gold and Copper. This mineralized area falls on the same trend as the Piedras Verdes Project Mine. All recent surface, trench and dump samples taken in rock chips and channel, were sent to ALS Chemex in Sonora, Mexico with the pulps being analyzed by ALS Chemex in Vancouver, Canada with the labs strict QA/QC procedures.

Masivo continues to work with its QP Brian Brewer as he recovers from taking some personal time off, we expect assay results from the Boston Mine in the near future.

Qualified Person

Brian Brewer, PGeo, is Masivo Silver's qualified person for the company's projects in Mexico and Nevada and has approved this news release.

About Masivo Silver Corp.

Masivo is a Canadian junior silver and gold mining exploration company based in Vancouver, Canada. Masivo is currently focused on advancing its exploration projects in the State of Nevada, US, and in the State of Sinaloa, Mexico. The Company's mill, located on its El Colomo property, is capable of processing up to 300 tons of ore per day. Additional information on Masivo's current operations is available on the Company's website at www.masivosilver.com or email davidcoburn@masivosilver.com or phone: +1 (602) 315-1231.

ON BEHALF OF THE BOARD OF DIRECTORS
"David Coburn" Chief Executive Officer

This press release contains "forward-looking information" that is based on the Company's current expectations, estimates, forecasts, and projections. This forward-looking information includes, among other things, statements with respect to the Company's exploration plans. The words "will", "anticipated", "plans" or other similar words and phrases are intended to identify forward-looking information. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the Company's actual results, level of activity, performance, or achievements to be materially different from those expressed or implied by such forward-looking information.

Neither 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 release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/247287

FAQ

What are the key terms of Masivo Silver's (GNYPF) Cerro Colorado acquisition agreement?

The agreement includes 300,000 initial shares, $310,000 USD in payments over 4 years, optional share payments up to 2.5M shares, and a 1.5% NSR buyable for $1M USD.

What historical precious metal grades were found at Cerro Colorado project?

Historical samples showed up to 2200 g/t Ag and 4.57 g/t Au in a collapsed tunnel, and 1840 g/t Ag, 4.8 g/t Au in dump samples.

When will GNYPF begin drilling at the Cerro Colorado project?

Masivo Silver plans to begin drilling in May 2025, starting with an eight-hole program using a $75,000 USD drill credit.

What is the size and location of GNYPF's Cerro Colorado project?

The project covers 2,649 hectares across two properties, located 28km from Alamos and 11km north of Piedras Verdes copper mine in Sonora, Mexico.