Northair Silver Acquires Los Cuates Gold Project

VANCOUVER, BC – Northair Silver Corp. and its wholly owned subsidiary Grupo Northair de Mexico, S.A. de C.V. has signed two binding agreements; one with Serengeti Resources Inc. ("Serengeti") to acquire 100% the Los Cuates gold project adjacent to its Cigarra silver deposit, located in the state of Chihuahua, Mexico; and the other with Northern Empire Resources Corp. whereby Northair will assign and transfer the El Reventon silver project located in Durango State, Mexico to Northern Empire.

"The decision to acquire the Los Cuates is consistent with Northair’s goals and objectives of advancing its flagship La Cigarra silver project," said Andrea Zaradic, President & CEO of Northair. "Furthermore, assigning the El Reventon Project will provide additional resources to the Company as it continues to explore, permit and develop La Cigarra in parallel to completing an updated NI 43-101 mineral resource estimate anticipated in early 2015."

The Los Cuates gold project consists of 3 concessions covering 365 hectares and is situated immediately west of the Company’s flagship La Cigarra silver project, totaling approximately 32,000 hectares. Los Cuates is road accessible using a series of gravel roads from the nearby historic mining city of Parral, which is located approximately 26 kilometers to the southeast. Since 2010, work carried out by Serengeti on Los Cuates included geologic mapping, surface sampling, trenching, ground geophysics and diamond drilling. Results of the exploration programs defined an epithermal gold-silver target area measuring 2,000 meters in length by 500 meters in width in the western portion of the project area, which appears to be associated with a number of prominent east-west trending structures and pervasively altered and oxidized sedimentary host rock formations.

In 2012, Serengeti carried out an induced polarization (I.P.) survey over an area consisting of three sub-parallel east-west trending structures, which had returned the best gold values. To follow up on this program, a nine hole reverse circulation (RC) drill program totaling 987 meters was completed to test both the east-west trending structures as well as a quartz vein in the western portion of the concessions. 

Subject to an Assignment Agreement dated December 19, 2014, Northair agreed to assign and transfer to Northern Empire its 100% interest in three mineral concessions comprising the El Reventon Project. In consideration of the El Reventon Assignment, Northern Empire has agreed to pay Northair the sum of C$10,000; issue to Northair 200,000 common shares in the capital of Northern Empire; and grant Northair a one percent (1%) net smelter royalty from any future production on the Project. Northern Empire shall be entitled at any time to buy-back the full net smelter royalty by paying to Northair C$1,000,000.

The closing of the El Reventon Agreement shall be subject to receipt of all necessary regulatory approvals.